Bucher Industries Ag · SIX:BUCN
Bucher Industries — FY2008 Earnings Presentation
66 slides from Bucher Industries's earnings presentation, March 2009
Slide 1: Annual press conference and annual analyst conference
Annual press conference and annual analyst conference Annual press conference and annual analyst conference Page 1
Slide 2: Kurt Siegenthaler, Chairman; Philip Mosimann, CEO; Roger Baillod, CFO
Kurt Siegenthaler, Chairman Philip Mosimann, CEO Roger Baillod, CFO Annual press conference and annual analyst conference Page 2
Slide 3: Annual press conference and annual analyst conference
Annual press conference and annual analyst conference Annual press conference and annual analyst conference Page 3
Slide 4: Stock market capitalisation
Stock market capitalisation CHF m De cr ea 2800 % se 416 sh e + ar 2400 pric e pr are ic e sh e -7 2000 reas 1% Inc 1600 1200 800 400 0 Dec. 2004 Dec. 2005 Dec. 2006 Dec. 2007 Dec. 2008 13.03.2009 Shareholders' equity Market capitalisation Annual press conference and annual analyst conference Page 4
Slide 5: Dividend / payout ratio
Dividend / payout ratio CHF m % 60 60 50 53 50 48 40 40 30.9 32.7 27.5 25.8 27.7 30 30 26 20 22 20 15 10 10 0 0 1) 2004 2005 2006 2007 2008 1) Dividend Payout ratio Board of directors’ proposal Annual press conference and annual analyst conference Page 5
Slide 6: Annual Report 2008 Philip Mosimann, CEO
Annual Report 2008 Philip Mosimann, CEO Annual press conference and annual analyst conference Page 6
Slide 7: Group at a glance
Group at a glance • Continued strong organic sales growth - 16% last year - Sales doubled since 2002 • EBIT margin before impairment charges improved in all the divisions except Bucher Hydraulics • Group sales increased by 13% to CHF 2.8 billion • High currency impact on sales (-6% / CHF -149 millio
Slide 8: Group at a glance (continued)
Group at a glance (continued) • Solid operating ratios - EBITDA margin up from 11.6% to 12.2% - EBIT margin up from 9.3% to 9.9% (before impairment charges) - Operating return of 18.5% RONOA after tax, exceeding the target of 16% • Market and technology leadership expanded - Kuhn Group: Blanchard (s
Slide 9: Key figures
Key figures CHF million 2008 2007 % change Order intake 2 792 2 704 3.2 Net sales 2 789 2 459 13.4 Order book 843 871 -3.2 Operating profit (EBITDA) 342 286 19.5 as % of net sales 12.2% 11.6% Operating profit (EBIT) before impairment 276 229 20.4 as % of net sales 9.9% 9.3% Operating profit (EBIT) 2
Slide 10: Net sales by division and region in 2008
Net sales by division and region in 2008 CHF 2 789 million Kuhn Group 39% Europe 65% Bucher Municipal 21% Switzerland 5% Bucher Hydraulics 18% Americas 17% Emhart Glass 15% Asia 8% Bucher Process 7% Other 5% Annual press conference and annual analyst conference Page 10
Slide 11: Employee numbers
Employee numbers Number of employees 2008 2007 % change At 31 December 8 373 7 484 11.9 attributable to acquisitions 390 155 Average during year 8 176 7 261 12.6 Annual press conference and annual analyst conference Page 11
Slide 12: Number of employees by region in 2008
Number of employees by region in 2008 France 34% North America 14% Switzerland 13% Germany 9% United Kingdom 6% Sweden 6% Brazil 5% Italy 4% Australia 3% Asia 3% Other 3% Annual press conference and annual analyst conference Page 12
Slide 13: Investing in the future
Investing in the future CHF million 2008 2007 % change Development expenses 78 71 9.8 Capital expenditure on property, plant and equipment 131 131 -0.2 Acquisitions 152 30 Annual press conference and annual analyst conference Page 13
Slide 14: Five divisions
Five divisions Kuhn Group Bucher Municipal Bucher Process Bucher Hydraulics Emhart Glass Machinery for hay and Municipal vehicles for Machinery and equip- Custom hydraulic drive Machinery, com- forage harvesting, cleaning and removing ment for wine and fruit and control systems for ponents, systems
Slide 15: Division results
Division results 2008 2007 CHF million EBIT EBIT margin EBIT EBIT margin Kuhn Group 137 12.4% 108 11.6% Bucher Municipal* 43 7.4% 38 6.6% 37 6.6% Bucher Process 24 12.4% 19 10.9% Bucher Hydraulics* 56 11.3% 31 6.3% 59 15.1% Emhart Glass 35 8.4% 33 7.9% Other/consolidation -19 -27 Bucher Industries*
Slide 16: Kuhn Group Specialised agricultural machinery
Kuhn Group Specialised agricultural machinery Ploughing Tillage Seeding Fertilisation Manure spreaders Spraying Hay & forage Feed storage Bedding & feeding Landscape harvesting maintenance Annual press conference and annual analyst conference Page 16
Slide 17: Kuhn Group 2008 highlights
Kuhn Group 2008 highlights • Very good performance: sales of CHF 1 106 million - Local-currency sales growth of 26% - Order intake up 24% in local currency • All geographical markets contributed to the growth, with Brazil surpassing the previous record reached in 2004 • Operating EBIT of CHF 137 mil
Slide 18: Inauguration assembly plant in France
Inauguration assembly plant in France with French minister of agriculture Mr Barnier Annual press conference and annual analyst conference Page 18
Slide 19: Kuhn Group Complete product range under one brand
Kuhn Group Complete product range under one brand Competitors Hay and forage hedge feed tillage equipment seeders sprea- spray- trac- harvesters mowers tedders rakes balers cutters mixers driven non-driven drilling precision ders ers tors selfpropelled Kuhn Group John Deere CNH AGCO Claas Renault Kr
Slide 20: Kuhn Group Key figures
Kuhn Group Key figures CHF million 2008 2007 % change Order intake 1 224 1 045 17.1 Net sales 1 106 929 19.0 Order book 432 333 29.8 Operating profit (EBITDA) 157 127 23.8 as % of net sales 14.2% 13.6% Operating profit (EBIT) 137 108 27.1 as % of net sales 12.4% 11.6% Number of employees at 31 Decem
Slide 21: Kuhn Group Net sales by region in 2008
Kuhn Group Net sales by region in 2008 Europe 73% Americas 24% Asia 2% Other 1% Annual press conference and annual analyst conference Page 21
Slide 22: Kuhn Group Outlook for 2009
Kuhn Group Outlook for 2009 • Sluggish lending - Hitting growth regions of Eastern Europe, Russia and Brazil particularly hard - Also affecting main markets of Western Europe and North America • Milk and meat prices falling • Future prospects for agriculture remaining bright • Strong order book, wit
Slide 23: Bucher Municipal Sweepers and winter maintenance equipment
Bucher Municipal Sweepers and winter maintenance equipment Compact sweepers Truck mounted sweepers Spreaders Snow blowers Refuse collection vehicles Annual press conference and annual analyst conference Page 23
Slide 24: Bucher Municipal 2008 highlights
Bucher Municipal 2008 highlights • Strong order book at the beginning of 2008 and good market position in Europe and Australia • Large orders to supply 104 truck mounted sweepers to Bangkok • Winter maintenance business fuelled by snowy winter • Expansion of the Latvian assembly and component plant
Slide 25: Bucher Municipal Key figures
Bucher Municipal Key figures CHF million 2008 2007 % change Order intake 528 603 -12.4 Net sales 579 557 4.1 Order book 115 178 -35.7 Operating profit (EBITDA) 51 46 11.4 as % of net sales 8.8% 8.2% Operating profit (EBIT) before impairment 43 37 15.7 as % of net sales 7.4% 6.6% Operating profit (EB
Slide 26: Bucher Municipal Net sales by region in 2008
Bucher Municipal Net sales by region in 2008 Europe 62% Switzerland 16% Australia 13% Asia 6% Other 3% Annual press conference and annual analyst conference Page 26
Slide 27: Bucher Municipal Outlook for 2009
Bucher Municipal Outlook for 2009 • No recovery in demand in sight • Local authorities with lower tax revenues and (still?) without programmes to boost economic activity • Private sweeper fleet operators largely holding back due to strict lending practices • Some major invitations to tender seem to
Slide 28: Bucher Process Wine and fruit juice production equipment
Bucher Process Wine and fruit juice production equipment Destemmers Pneumatic tank presses CF filtration systems Reverse osmosis systems Mills Hydraulic presses Ultrafiltration systems Evaporators Annual press conference and annual analyst conference Page 28
Slide 29: Bucher Process 2008 highlights
Bucher Process 2008 highlights • Encouraging demand for winemaking equipment in France, Italy, South Africa and New Zealand • Southern hemisphere suffering severely from the financial crisis • Excellent handling of major orders to supply equipment for producing apple juice concentrate to the UK and
Slide 30: Bucher Process Key figures
Bucher Process Key figures CHF million 2008 2007 % change Order intake 168 202 -16.8 Net sales 195 174 12.3 Order book 40 69 -41.6 Operating profit (EBITDA) 26 21 24.3 as % of net sales 13.4% 12.1% Operating profit (EBIT) 24 19 26.8 as % of net sales 12.4% 10.9% Number of employees at 31 December 52
Slide 31: Bucher Process Net sales by region in 2008
Bucher Process Net sales by region in 2008 Europe 65% Switzerland 3% Asia 16% Americas 10% Other 6% Annual press conference and annual analyst conference Page 31
Slide 32: Bucher Process Outlook for 2009
Bucher Process Outlook for 2009 • Projects delayed because of restrictive lending practices • Subsidies announced in Europe for winemaking equipment should have a positive impact • Prices falling this year following the peak prices for apple juice concentrate reached in 2008 • Major projects for app
Slide 33: Bucher Hydraulics Custom drive solutions
Bucher Hydraulics Custom drive solutions Agricultural Mining / tunnelling Wind energy Mechanical Municipal machinery engineering equipment Construction Materials handling Elevator hydraulics Marine / offshore Power engineering equipment Annual press conference and annual analyst conference Page 33
Slide 34: Bucher Hydraulics 2008 highlights
Bucher Hydraulics 2008 highlights • Very strong demand in all important market segments, followed by a sharp decline in the fourth quarter • Full capacity utilisation until October 2008 • Agricultural machinery segment defied the financial crisis last year • Position expanded in the USA - Integratio
Slide 35: Bucher Hydraulics Key figures
Bucher Hydraulics Key figures CHF million 2008 2007 % change Order intake 473 414 14.2 Net sales 497 387 28.6 Order book 85 94 -8.9 Operating profit (EBITDA) 76 71 7.8 as % of net sales 15.4% 18.3% Operating profit (EBIT) before impairment 56 59 -3.6 as % of net sales 11.3% 15.1% Operating profit (E
Slide 36: Bucher Hydraulics Net sales by region in 2008
Bucher Hydraulics Net sales by region in 2008 Europe 66% Switzerland 5% Americas 18% Asia 10% Other 1% Annual press conference and annual analyst conference Page 36
Slide 37: Bucher Hydraulics Outlook for 2009
Bucher Hydraulics Outlook for 2009 • As a component supplier, the division is directly dependent on how well its customers’ business goes • First-half order intake additionally declining due to customers running down inventories • Very uncertain forecasts due to strong slumps in order intake • Havin
Slide 38: Emhart Glass Glass container manufacturing equipment
Emhart Glass Glass container manufacturing equipment Gob forming Glas forming machine Ware handling Inspection Furnace Forehearth Gob forming Palletizing Forming machine Lehr Lehr Inspection Ware handling Glass container manufacturing process Annual press conference and annual analyst conference Pag
Slide 39: Emhart Glass 2008 highlights
Emhart Glass 2008 highlights • Good prices and strong demand for glass containers • Heavy capital spending on expanding and modernising glass container manufacturing facilities • Smooth integration of ICS / Inex, the US inspection machine manufacturer acquired a year earlier • Very high and constant
Slide 40: Assembly plant in Malaysia
Assembly plant in Malaysia Annual press conference and annual analyst conference Page 40
Slide 41: Assembly shop in Malaysia
Assembly shop in Malaysia Annual press conference and annual analyst conference Page 41
Slide 42: Emhart Glass Key figures
Emhart Glass Key figures CHF million 2008 2007 % change Order intake 399 441 -9.4 Net sales 418 420 -0.3 Order book 171 198 -13.4 Operating profit (EBITDA) 44 42 6.5 as % of net sales 10.6% 9.9% Operating profit (EBIT) 35 33 5.4 as % of net sales 8.4% 7.9% Number of employees at 31 December 1 064 1
Slide 43: Emhart Glass Net sales by region in 2008
Emhart Glass Net sales by region in 2008 Europe 51% Americas 20% Asia 15% Middle East / Africa 12% Other 2% Annual press conference and annual analyst conference Page 43
Slide 44: Emhart Glass Outlook for 2009
Emhart Glass Outlook for 2009 • Lower capital spending in the glass container industry - Glass container prices now falling after the price rise in 2008 - High capacity expansion in previous years - Considerable impediments to financing capital-intensive projects - Projects being delayed, scaled bac
Slide 45: Measures to combat the downturn
Measures to combat the downturn • Immediate measures in place - “Cash is King” - Reducing temporary jobs, overtime and flexitime balances, untaken holidays, night and Sunday shifts, few job cuts so far - Insourcing manufacturing and subassembly where expedient - Rolling contingency plans detailing s
Slide 46: Group and division earnings targets
Group and division earnings targets EBIT margin Targets 2008 2007 2006 2005 2004 Kuhn Group 11 12.4 11.6 **9.3 8.4 8.3 Bucher Municipal 8 *7.4 6.6 5.4 4.2 2.2 Bucher Process 9 12.4 10.9 7.6 5.9 4.1 Bucher Hydraulics 11 *11.3 15.1 12.6 9.9 8.6 Emhart Glass 9 8.4 7.9 7.0 5.2 6.9 Bucher Industries 9 *9
Slide 47: Group outlook for 2009
Group outlook for 2009 • Great uncertainty surrounding forecasts • Eastern Europe, Russia and Brazil hit hard, with the main sales markets of Western Europe and the USA also affected • Customers’ projects facing financing problems, delays, rescaling and cancellations • Order intake additionally slow
Slide 48: Financial Report 2008 Roger Baillod, CFO
Financial Report 2008 Roger Baillod, CFO Annual press conference and annual analyst conference Page 48
Slide 49: Order intake, net sales and order book 2008
Order intake, net sales and order book 2008 CHF m 936 908 1000 1000 871 785 750 704 843 800 800 792 790 788 746 745 568 682 600 661 669 669 670 600 625 617 544 637 542 567 400 400 200 200 0 0 1. Quarter 2. Quarter 3. Quarter 4. Quarter 1. Quarter 2. Quarter 3. Quarter 4. Quarter Order intake 2007 Or
Slide 50: Currency turmoil 2008
Currency turmoil 2008 EUR/CHF USD/CHF Average exchange rate -3.6% Average exchange rate -9.8% Closing date -10.3% Closing date -5.1% GBP/CHF SEK/CHF Average exchange rate -16.7% Average exchange rate -7.5% Closing date -30.9% Closing date -22.1% Annual press conference and annual analyst conference
Slide 51: Order intake, net sales and order book
Order intake, net sales and order book CHF m % Order book le s 14.2 Ne t sa R 2792 C AG 2704 2800 1400 2789 2500 1200 2163 2459 2200 1000 1947 1793 871 1900 2087 843 800 1948 1600 600 1641 605 524 1300 480 400 1000 200 700 0 2004 2005 2006 2007 2008 order book order intake net sales Annual press con
Slide 52: Impact on net sales 2008
Impact on net sales 2008 currency adjusted +19.5% 20% +3.5% -6.1% 18% 86 m -149 m 16% +16.0% 14% 393 m +13.4% 12% 330 m 10% 8% 6% 4% 2% 0% Internal Acquisitions Currency Total Annual press conference and annual analyst conference Page 52
Slide 53: Consolidated income statement (1)
Consolidated income statement (1) CHF million 2008 2007 Net sales 2 789 97.3% 2 459 97.2% Changes in inventories of finished goods and work in progress 78 2.7% 71 2.8% Total operating revenue 2 867 100.0% 2 530 100.0% Material expenses -1 574 -54.9% -1 359 -53.7% Personnel expenses -624 -21.7% -578
Slide 54: Consolidated income statement (2)
Consolidated income statement (2) CHF million 2008 2007 % change Operating profit before depreciation and amortisation (EBITDA) 342 286 +19.5 Depreciation -55 -46 +19.0 Amortisation -11 -11 - Operating profit (EBIT) before impairment charges 276 229 +20.4 Impairment charges -30 - n.a. Operating prof
Slide 55: Net financial result
Net financial result CHF million 2008 2007 +/- Net interest expense -9 -8 -1 Net gain on securities 11 20 -9 Foreign exchange gains and losses -23 -2 -21 Impairment charges on associates -9 - -9 Other financial items 1 1 - Net financial result -29 11 -40 Annual press conference and annual analyst co
Slide 56: Income tax expense
Income tax expense CHF million 2008 2007 +/- Profit before tax 217 240 -23 Income tax expense 72 69 +3 Effective tax rate 33.0% 28.8% Applicable tax rate 32.4% 33.3% Annual press conference and annual analyst conference Page 56
Slide 57: Net operating assets (NOA) and NOA in % of net sales
Net operating assets (NOA) and NOA in % of net sales (closing date) CHF m % 1000 40 900 33.1 35 800 28.7 28.1 26.8 25.8 923 30 700 600 25 500 559 692 20 538 400 440 15 300 10 200 100 5 0 0 2004 2005 2006 2007 2008 net operating assets in % of net sales Annual press conference and annual analyst conf
Slide 58: Net operating assets (NOA) and return on net operating assets after tax (RONOA)
Net operating assets (NOA) and return on net operating assets after tax (RONOA) CHF m % 1000 40 900 35 891 800 30 700 600 687 25 605 500 567 23.8 20 503 400 18.5 15 300 14.8 14.3 12.1 10 200 100 5 0 0 2004 2005 2006 2007 2008 net operating assets return on net operating assets Annual press conferenc
Slide 59: Cash flow statement
Cash flow statement CHF million 2008 2007 +/- Profit for the year 145 171 -26 Depreciation and amortisation 66 57 +9 Change in provisions -7 -29 +22 Change in working capital -110 -53 -57 Other monetary positions -30 20 -50 Impairment charges 39 - +39 Net cash flow from operating activities 103 166
Slide 60: Operating free cash flow / Free cash flow
Operating free cash flow / Free cash flow CHF million 2008 2007 +/- Net cash flow from operating activities 103 166 -63 Investment in property, plant and equipment (net) -117 -120 +3 Investment in intangible assets (net) -1 -3 +2 Operating free cash flow -15 43 -58 Change in financial assets and sec
Slide 61: Net liquidity and free cash flow
Net liquidity and free cash flow Net liquidity Free cash flow CHF m CHF m 200 200 150 121 173 150 164 100 100 92 104 50 69 1 50 0 0 2 -50 -50 -111 -100 -100 -150 -150 -200 -200 -223 -250 -250 2004 2005 2006 2007 2008 Net liquidity Free cash flow Annual press conference and annual analyst conference
Slide 62: Financial liabilities and net liquidity
Financial liabilities and net liquidity CHF million 31.12. 30.06. 31.12. 2008 2008 2007 Current 111 32.2% 217 56.5% 178 54.3% Non-current 234 67.8% 167 43.5% 150 45.7% Total financial liabilities 345 100% 384 100% 328 100% Cash, cash equivalents and securities 234 239 492 Net liquidity -111 -145 164
Slide 63: Shareholders' equity / Intangible assets
Shareholders’ equity / Intangible assets CHF m 1000 873 846 725 800 639 525 600 400 131 200 79 47 62 45 79 61 89 49 25 0 2004 2005 2006 2007 2008 Shareholders' equity Intangible assets thereof goodwill Annual press conference and annual analyst conference Page 63
Slide 64: Shareholders' equity and return on equity (ROE)
Shareholders‘ equity and return on equity (ROE) CHF m % 1000 25 21.4 800 846 20 873 14.8 725 600 16.9 15 639 525 14.0 400 10.7 10 200 5 0 0 2004 2005 2006 2007 2008 Shareholders' equity Return on equity Annual press conference and annual analyst conference Page 64
Slide 65: Selected financial key figures
Selected financial key figures 2008 2007 Equity ratio 40.9% 41.0% Net tangible worth (equity – goodwill) CHF m 757 812 Fixed-assets-to-net-worth ratio 181% 210% Net liquidity CHF m -111 164 Repayment term of net interest bearing liabilities in years (net debt / EBITDA) 0.3 n.a. Interest coverage rat
Slide 66: Financial calendar for 2009/2010
Financial calendar for 2009/2010 Annual general meeting 16 April 2009 Release of first quarter 2009 group sales 28 April 2009 Interim report 2009 11 August 2009 Release of third quarter 2009 group sales 29 October 2009 Release of 2009 group sales 1 February 2010 Annual press & analyst conferences 16