Bucher Industries Ag · SIX:BUCN
Bucher Industries — Investor Presentation (October 2015)
30 slides from Bucher Industries's investor presentation, Oct 28, 2015
Slide 1: Investor relations presentation
Investor relations presentation 28 October 2015 Roger Baillod, CFO
Slide 2: Group strategy
Group strategy • Increase in company value (RONOA > WACC) • Diversified group focused on mechanical and vehicle engineering • Strengthening of existing operating segments – Continuous product innovation – Operational efficiency with flexible structures – Internal growth and targeted acquisitions • D
Slide 3: Bucher – since 1807
Bucher – since 1807 2014 business year Kuhn Group Bucher Municipal Bucher Hydraulics Bucher Emhart Glass Bucher Specials Agricultural machinery Municipal vehicles Hydraulic systems Glass container industry Individual businesses • Tillage • Compact and truck- • Mobile and industrial • Glass-forming •
Slide 4: Medium-term earnings targets
Medium-term earnings targets EBIT-Margin 2010 2011 2012 2013 2014 targets Kuhn Group 9.2 11.3 12.5 14.9 12.1 12 Bucher Municipal 7.3 7.0 9.3 8.6 7.7 8 Bucher Hydraulics 9.9 8.7 9.0 9.4 10.2 11 Bucher Emhart Glass 1.21) 4.5 0.31) 4.8 3.9 9 Bucher Specials 4.6 6.1 8.1 10.0 8.9 10 Bucher Industries 7.4
Slide 5: Order book, order intake and net sales
Order book, order intake and net sales CHF m net sales CHF m order book 3500 1400 CAGR 8% 2806 3000 2718 1200 2587 2609 2742 2500 2217 2336 1000 2691 2490 923 2000 850 800 2034 795 789 1500 663 600 1000 400 500 200 0 0 2010 2011 2012 2013 2014 Order book Order intake Net sales 28 October 2015 - Inve
Slide 6: Net sales and results
Net sales and results CHF m net sales CHF m results 3000 2789 2806 450 2609 2691 2459 2500 2336 375 2087 2142 1948 2034 371 350 2000 342 300 307 286 287 1500 185 246 260 257 225 166 229 224 232 1000 124 190 190 196 190 150 118 171 151 156 145 127 500 96 26 98 75 86 0 0 -24 -500 -75 2005 2006 2007 20
Slide 7: Group Key figures
Group Key figures CHF million January – September Change in Full Year 2015 2014 % %1) %2) 2014 Order intake 1 783 2 002 - 11.0 - 3.6 - 4.3 2 742 Net sales 1 891 2 116 - 10.6 - 3.8 - 4.4 2 806 Order book 628 737 - 14.8 - 7.5 - 7.5 789 Employees at closing date 11 222 11 767 - 4.6 - 4.6 11 554 CHF mil
Slide 8: Consolidated income statement – first half
Consolidated income statement – first half CHF million 2015 2014 Change in % Net sales 1 341 1 469 - 8.7 Operating profit (EBITDA) 162 187 - 13.1 as % of net sales 12.1% 12.7% Depreciation - 34 - 35 1.2 Amortisation - 10 - 10 2.9 Operating profit (EBIT) 118 142 - 16.7 as % of net sales 8.8% 9.6% Net
Slide 9: Net operating assets (NOA) and RONOA after tax
Net operating assets (NOA) and RONOA after tax CHF m % 1400 1330 70 1268 1200 1141 60 1061 1000 970 50 849 828 49.6 800 45.2 40 41.8 41.5 39.4 37.2 600 35.4 30 19.3 400 17.0 17.0 17.4 15.8 20 12.4 12.7 200 10 0 0 2010 2011 2012 2013 30.06.2014 2014 30.06.2015 Net operating assets (4q-average) as % o
Slide 10: Operating free cash flow and investments
Operating free cash flow and investments Cash flow from operating activities CHF m 300 260 224 250 58 200 172 200 163 95 132 150 117 109 202 100 92 105 50 55 40 54 39 0 -48 -24 -63 -50 -88 -100 -150 2010 2011 2012 2013 30.06.2014 2014 30.06.2015 Operating free cash flow Investments (net) Cash flow f
Slide 11: Net cash/debt and free cash flow
Net cash/debt and free cash flow CHF m 300 181 200 135 62 62 100 19 0 -19 0 -72 -85 -222 -100 -75 -133 -239 -200 -201 -300 2010 2011 2012 2013 1. HY 2014 2. HY 2014 1. HY 2015 Net cash/debt Free cash flow 28 October 2015 - Investor relations presentation 12
Slide 12: Equity and return on equity
Equity and return on equity CHF m % 1400 70 1202 1200 60 1074 1100 1041 1000 50 890 814 800 748 40 600 30 20.0 19.0 18.3 16.7 400 16.3 16.0 20 12.7 200 10 0 0 2010 2011 2012 2013 HY 2014 2014 HY 2015 Equity Return on equity 28 October 2015 - Investor relations presentation 13
Slide 13: Equity / Intangible assets
Equity / Intangible assets CHF m 1400 1202 1200 1074 1100 1041 1000 890 814 748 800 600 400 266 253 215 174 159 181 135 138 133 200 117 53 75 73 80 0 2010 2011 2012 2013 30.06.2014 2014 30.06.2015 Equity Intangible assets thereof goodwill 28 October 2015 - Investor relations presentation 14
Slide 14: EBIT bridge – first half 2015
EBIT bridge – first half 2015 Currency and economic effects CHF m Impact on EBIT margin -0.5 percentage points -11% -17% -8% -1% -6% 4% -6% 142 126 118 100% 89% 83% EBIT Translation Price One-off Corrective EBIT Economic EBIT June 2014 reduction effects actions adjusted decline June 2015 (devaluatio
Slide 15: EBIT bridge – full year 2015
EBIT bridge – full year 2015 Estimated currency effects CHF m Impact on EBIT margin -0.5 percentage points -15% -10% -5% -5% 5% 257 218 100% 85% EBIT Translation Price One-off Corrective EBIT 2014 reduction effects actions adjusted (devaluation, hedging) 28 October 2015 - Investor relations presenta
Slide 16: Selected financial key figures
Selected financial key figures 30.06.2015 30.06.2014 31.12.2014 Return on net operating assets (RONOA) after tax 12.7% 17.4% 15.8% Net tangible worth CHF million 925 962 1 068 (Equity less goodwill) Committed credit lines in CHF million 370 370 370 Thereof drawn in CHF million 100 85 85 Net cash/deb
Slide 17: Group outlook for 2015
Group outlook for 2015 • No significant improvement in the economic environment • The Group is expecting sales and operating profit in terms of local currencies to decrease year on year. – Kuhn Group expects a decline in sales and lower profitability – Bucher Municipal is reckoning with lower sales
Slide 18: Sustainability report 2014
Sustainability report 2014 • 4th sustainability report based on the key figures 2013 and 2014 of Platzhalter – 32 most important production sites worldwide, – these sites account for about 80% of Group sales, and more than 90% of all employees. • Compared to 2013, energy consumption at Group level f
Slide 19: Kuhn Group Key figures
Kuhn Group Key figures CHF million January – September Change in Full Year 2015 2014 % %1) %2) 2014 Order intake 706 870 - 18.9 - 10.6 - 12.2 1 221 Net sales 846 987 - 14.3 - 6.3 - 7.6 1 262 Order book 281 376 - 25.5 - 18.7 - 18.7 454 Employees at closing date 4 876 5 290 - 7.8 - 7.8 5 207 CHF milli
Slide 20: Price development soybeans, corn, wheat
Price development soybeans, corn, wheat USD / bushel US average prices 16 14 12 10 Wheat 8 Corn 6 Soybeans 4 2 0 2014P 2005 2006 2007 2008 2009 2010 2012 2013 2011 2015F Source: USDA, Deere 28 October 2015 - Investor relations presentation 21
Slide 21: Kuhn Group Outlook for 2015
Kuhn Group Outlook for 2015 • Long-term outlook: positive and unchanged • After several years of strong growth, the agricultural cycle is weakening – Arable farming is in sharp decline as a result of falling cereal prices – Milk and meat producers decline less • Regional variations in market trends
Slide 22: Bucher Municipal Key figures
Bucher Municipal Key figures CHF million January – September Change in Full Year 2015 2014 % %1) 2014 Order intake 281 311 - 9.7 - 3.0 416 Net sales 269 296 - 9.0 - 2.9 419 Order book 106 119 - 10.5 - 3.3 101 Employees at closing date 1 588 1 601 - 0.8 1 557 CHF million January – June Change in Full
Slide 23: Bucher Municipal Outlook for 2015
Bucher Municipal Outlook for 2015 • Demand in Europe and Australia continuing to stagnate – Stable market for sweepers, weakening refuse collection vehicles – Flat winter maintenance equipment business in Europe • The new range of products can provide momentum • Measures to mitigate the currency eff
Slide 24: Bucher Hydraulics Key figures
Bucher Hydraulics Key figures CHF million January – September Change in Full Year 2015 2014 % %1) 2014 Order intake 351 370 - 5.2 - 0.9 485 Net sales 353 365 - 3.2 1.1 475 Order book 73 74 - 1.9 1.8 78 Employees at closing date 2 036 2 080 - 2.1 2 043 CHF million January – June Change in Full Year 2
Slide 25: Bucher Hydraulics Outlook for 2015
Bucher Hydraulics Outlook for 2015 • Business development in local currencies at a stable level overall – Europe: stable demand – North America: brisk demand and momentum from major serial orders continuing – China and Brazil: affected by sharp downturn – Materials handling and industrial hydraulics
Slide 26: Bucher Emhart Glass Key figures
Bucher Emhart Glass Key figures CHF million January – September Change in Full Year 2015 2014 % %1) 2014 Order intake 300 265 13.1 25.8 367 Net sales 246 264 - 6.8 3.1 389 Order book 141 119 18.1 32.0 95 Employees at closing date 1 827 1 891 - 3.4 1 890 CHF million January – June Change in Full Year
Slide 27: Bucher Emhart Glass Outlook for 2015
Bucher Emhart Glass Outlook for 2015 • Market environment expected to be comparable with that of last year – Business with new machinery remains volatile and renders it difficult to maintain a constant level of capacity utilisation – Strong parts and service business – Continuing weakness in Asia; i
Slide 28: Bucher Specials Key figures
Bucher Specials Key figures CHF million January – September Change in Full Year 2015 2014 % %1) 2014 Order intake 175 219 - 20.1 - 15.6 299 Net sales 209 239 - 12.3 - 7.8 305 Order book 36 58 - 38.7 - 35.8 73 Employees at closing date 835 842 - 0.8 793 CHF million January – June Change in Full Year
Slide 29: Bucher Specials Outlook for 2015
Bucher Specials Outlook for 2015 • Market outlook in local currencies: – Weakening demand for winemaking equipment expected – Slump in demand for beverage and environmental technology owing to delays in projects and keen competition – Positive demand trend at dealership in agricultural machinery in
Slide 30: Many thanks.
Many thanks. Your Contacts: Roger Baillod, CFO Tel. +41 43 815 80 50 [email protected] www.bucherindustries.com 31
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