Wacker Neuson Se · XETR:WAC
Wacker Neuson — FY2015 Earnings Presentation
38 slides from Wacker Neuson's earnings presentation, Mar 15, 2016
Slide 1: Analyst and Investor Conference – Results FY 2015 and Q4 2015
Wacker Neuson SE Analyst and Investor Conference – Results FY 2015 and Q4 2015 Cem Peksaglam (CEO) – Günther C. Binder (CFO) March 15, 2016 1
Slide 2: Agenda
Agenda Overview Outlook Financials 2015 2
Slide 3: The ups and downs of fiscal 2015
The ups and downs of fiscal 2015 Record revenue of € 1.375 billion Crisis in many markets/regions hit revenue and especially Solid growth in Europe (+6%), double-digit growth in Asia-Pacific profitability in H2/2015 (+22%, from a low level) Energy sector (oil & gas) → squeeze on oil prices m
Slide 4: Q4/15 and 2015 at a glance
Q4/15 and 2015 at a glance Q4/15: Revenue increase, profit decrease Revenue:+3% Q4/yoy to € 358 m (adjusted for currency effects: -1%); Q4/qoq +15% EBITDA: -17% Q4/yoy to € 41 m; EBIT margin: 11.2% (Q4/14: 13,9%) EBIT: -31% Q4/yoy to € 22 m; EBITDA margin: 6.3% (Q4/14: 9.4%) 2015: Revenue
Slide 5: Global construction machinery markets 2015 vs. 2014
Global construction machinery markets 2015 vs. 2014 Crisis-hit markets dampened willingness to invest and reduced machinery sales Europe Russia North America China India Middle East Rest of Asia Latin America Africa Oceania 5 Sales of earth moving equipment, Source: ISC-Statistics, VDMA, February 20
Slide 6: Development of raw material and oil prices
Development of raw material and oil prices Price indices development (as a %) Raw materials in total Agriculture Metals Crude oil 200 150 100 50 0 May May March March July July October October Jan. 2014 June Jan. 2015 June Jan. 2016 February August September February August November December Septemb
Slide 7: Low oil prices make exploration economically impossible in some regions
Low oil prices make exploration economically impossible in some regions 7 January 9, 2016
Slide 8: Low oil & gas prices hit Wacker Neuson business
Low oil & gas prices hit Wacker Neuson business Oil & Gas: Wacker Neuson North America exposure (% of revenue) FY 2014 FY 2015 Exposure 14% 23% decreased 77% 86% Oil & Gas Others Oil & Gas Others Oil & Gas industry remains difficult 8
Slide 9: FAO – Food Price Index
FAO – Food Price Index1 Continued decrease of food prices 260 240 220 200 180 160 140 120 100 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Jan 16 Food Meat Dairy Cereals 1 100 = average prices 2002-2004 Source: FAO, January 2016, FAO = Food and Agriculture Organization of the United N
Slide 10: Global market for agricultural machines
Global market for agricultural machines Market for ag machinery declined significantly – 2015 below 2011 level Market volume of ag machines in EUR bn. Rest of world Latin-/Central America North America (NAFTA) Rest of Asia Japan India China Turkey Rest of Europe European Union 10 Source: VDMA Landte
Slide 11: 5 years comparison: Revenue development per quarter
5 years comparison: Revenue development per quarter Quarter-on-quarter comparison (revenues) (in € m) CAGR: 11.2% CAGR: 9.4% CAGR: 5.7% CAGR: 7.9% The downturn left its mark in second half of the year 2015. 11
Slide 12: 5 years comparison: FY revenue and EBIT margin
5 years comparison: FY revenue and EBIT margin Revenue and EBIT margin 2011 - 2015 (in € m) (in %) 11.4%1 10.6% 7.8% 8.2% 7.5% € 543 m EBIT generated in 5 years: → Ø € 109 m p.a. 1 Without Impairment: 12.5% 12
Slide 13: 2015: Revenues per region / business segment
2015: Revenues per region / business segment1 Europe2 Americas2 Asia/Pacific2 (in € m) (in € m) (in € m) +6% (+5%) +8% (-5%) +22% (+12%) 47,5 979,3 323,7 348,5 921,7 38,9 2014 2015 2014 2015 2014 2015 Light equipment3 Compact equipment3 Services3 (in € m) (in € m) (in € m) -1% (-9%) +15% (+13%) +4%
Slide 14: 2015 and Q4/15: Comparison of peer group construction divisions (global)
2015 and Q4/15: Comparison of peer group construction divisions (global) Revenue (Change vs. 2014 and Q4/14) Company Change in revenue 2015 vs. 2014 Change in revenue Q4/15 vs. Q4/14 Peer 1 Construction division1 9% 7% Wacker Neuson Group 7% 3% Peer 2 Construction division 4% -4% Peer 3 Construction
Slide 15: 2015 and Q4/15: Comparison of peer group agriculture divisions (global)
2015 and Q4/15: Comparison of peer group agriculture divisions (global) Revenue (Change vs. 2014 and Q4/14) Company Change in revenue 2015 vs. 2014 Change in revenue Q4/15 vs. Q4/14 Peer 13 Agriculture division1 0% Wacker Neuson Agr. Div. -2% -9% Peer 14 Agriculture division1 -20% -25% Peer 15 Agric
Slide 16: Zero Emission – Wacker Neuson, a leader of alternative drive technologies
„Zero Emission” – Wacker Neuson, a leader of alternative drive technologies 16
Slide 17: Alliance with HAMM AG proved successful
Alliance with HAMM AG proved successful New tandem rollers (1.8 – 4.5 t) and compactors (weighing up to 12 t) The cooperation has extended the portfolio of soil and asphalt compaction rollers. 17
Slide 18: Launch of Wacker Neuson
Launch of Wacker Neuson Internet is gaining of importance Digitalized offering of whole Wacker Neuson portfolio. 18
Slide 19: New assembly site in Brazil
New assembly site in Brazil Itatiba, São Paulo, Brazil Products: mobile generators Target market: Latin America Start of production: April 2016 „In the region – for the region“ 19
Slide 20: New CSO Mr. Jan Willem Jongert
New CSO Mr. Jan Willem Jongert Mr. Jan Willem Jongert (51) will be joining the Executive Board on April 1, 2016., taking responsible for the global sales, service, logistics and marketing activities Jan Willem Jongert Before joining Wacker Neuson he was CEO of Schwarzmüller Prior to this, Mr. Jo
Slide 21: Areas of responsibility for Executive Board from April 1, 2016
Areas of responsibility for Executive Board from April 1, 2016 Cem Peksaglam Günther C. Binder Martin Lehner Jan Willem Jongert CEO CFO CTO CSO Strategy/M&A, HR, Finance, audit, IT Procurement, production, Sales, logistics, service, legal matters, compliance, technology, quality marketing real estat
Slide 22: Agenda
Agenda Overview Outlook Financials 2015 22
Slide 23: 2015: Development of revenue and profitability
2015: Development of revenue and profitability Income statement (extract) and number of employees for 2015 and Q4 2015 (in € m) in % of in % of in % of in % of 2015 2014 Change in %1 Q4/2015 Q4/2014 Change in %1 revenue revenue revenue revenue Revenue 1,375.3 100.0 1,284.3 100.0 +7.1 (+2.7) 357.9 10
Slide 24: 2015: Comparison of EBIT vs. previous year
2015: Comparison of EBIT vs. previous year EBIT-change 2015 vs. 2014 (in € m) 27.0 -23.8 160 136.2 -28.4 140 120 -7.4 103.6 100 80 60 40 20 0 1 EBIT 2014 Revenue volume effect Revenue margin effect S,G&A Other EBIT 2015 1 Other income & expense Earnings negatively impacted by situation in crisis-hit
Slide 25: 2015: Development of profit per region
2015: Development of profit per region EBIT-change by region 2015 vs. 2014 (in € m) 140 136.2 -11.6 -19.7 120 -0.8 -0.5 103.6 100 80 60 40 20 0 EBIT 2014 Europe Americas Asia-Pacific Consolidation EBIT 2015 2015 vs. 2014 Europe Americas Asia-Pacific Total Revenue +6% +8% +22% +7% EBIT -9% -82% -87%
Slide 26: 2015: Gearing and equity
2015: Gearing and equity Equity, net debt and gearing 2011 – 2015 (€ million) Net financial debt Equity before minority interests Gearing as a % (as a % of equity) 1.064 40,0% 1.012 1.000 936 901 915 35,0% 800 30,0% 23,4% 25,0% 600 18,9% 18,7% 17,7% 20,0% 400 15,0% 10,0% 214 199 10,0% 177 180 200 90
Slide 27: 2015: Working capital development
2015: Working capital development Working capital 2011 – 2015 (in € m) WC: +8% 574.5 Inventories Trade receivables Trade payables 532.2 180.0 456.8 453.1 173.3 +4% 370.5 147.8 164.0 158.4 474.6 424.0 +12% 360.1 333.8 274.5 -62.4 -51.1 -44.7 -65.2 -80.1 +23% 2011 2012 2013 2014 2015 Working Capital r
Slide 28: 2015: Comfortable liquidity situation despite high investments
2015: Comfortable liquidity situation despite high investments Cash flow Cash flow Free cash flow Depreciation/amortization from operating activities from investment activities (in € million) (in € million) (in € million) (in € million) 131.0 67.7 +23% 106.8 60.1 +13% 21.5 -17% 17.8 +33% -85.3 -113.
Slide 29: 2015: Positive economic value added (EVA)
2015: Positive economic value added (EVA)1 ROCE II > WACC, positive EVA1: EUR 1.1 million (€ million) Average capital employed (in % of revenue) Revenue Return on capital employed (ROCE II) Weighted average cost of capital (WACC) 1,375.3 1,284.3 1,159.5 1,091.7 991.6 976.6 (71.0%) 859.4 (74.1%) 897.
Slide 30: Share price development
Share price development Share price performance since January 2015 with peak on April 27 % Key figures share in € 2011 2012 2013 2014 2015 ISIN / WK DE000WACK012 / WACK01 Earnings per share 1.22 0.77 0.87 1.30 0.94 Reuters / WACGn.DE / WAC GR Bloomberg Dividend payment 0.501 0.30 0.40 0.50 0.50 Indi
Slide 31: Proposed dividend for AGM on May 31, 2016
Proposed dividend for AGM on May 31, 2016 Dividend payouts 2007 – 2015 20151 20141 2013 2012 2011 2010 2009 2008 2007 Total payout 35.07 35.07 28.06 21.04 35.07 11.92 0 13.33 35.07 (€ million) Payout ratio2 (as a %) 53.0 38.3 45.9 38.9 40.9 49.8 - 32.0 40.0 Eligible shares 70.14 70.14 70.14 70.14 70
Slide 32: Agenda
Agenda Overview Outlook Financials 2015 32
Slide 33: Cautious forecast for 2016
Cautious forecast for 2016 Revenue and margins 2015–2016e Wacker Neuson Group revenue trend 2016e (Revenue in € billion) Europe North America 1.600,0 +2% to +5% 30 1.38 1.40–1.45 Latin America 1.400,0 25 South Africa and Sub Sahara 1.200,0 1 Asia 20 1.000,0 Australia 800,0 15 600,0 EBIT Margin EBIT
Slide 34: Our GIPI vision
Our “GIPI” vision Growth – Internationalization – Professionalization – Integration Growth Internationalization We aim for profitable growth We want to establish our company as a and healthy return on capital global player with a strong position in employed. We do not believe in our target markets.
Slide 35: Reinforcing measures to improve bottom line
Reinforcing measures to improve bottom line, e.g. Targeted expansion of profitable business fields, restructuring of low margin business fields Further market penetration with core products and diversification of end markets Continued internationalization Continued cost control Critical as
Slide 36: Medium-term goal: > 2 bn. Euro revenue
Medium-term goal: > 2 bn. Euro revenue Goal: To increase revenue to more than EUR 2 bn. in medium term and boost profitability 36
Slide 37: Financial calendar and IR contact
Financial calendar and IR contact Financial Calendar March 15, 2016 Publication of financial results 2015; Press Conference, Munich; Analysts' Conference Call April 12, 2016 Capital Market Day on bauma, Munich May 12, 2016 Publication of first-quarter report 2016; Analysts' Conference Call May 31, 2
Slide 38: Disclaimer
Disclaimer Cautionary note regarding forward-looking statements The information contained in this document has not been independently verified and no representation or warranty expressed or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctn