21
Reference (apr02) 1 Results Q1 2011 – analyst conference Frankfurt, May 13, 2011 Richard Mayer (Spokesperson of the Executive Board ) - Günther C. Binder (CFO)
Reference (apr02) 1
Results Q1 2011 – analyst conferenceFrankfurt, May 13, 2011
Richard Mayer (Spokesperson of the Executive Board ) - Günther C. Binder (CFO)
Reference (apr02) 2
Overview
Outlook
Financials Q1
Summary Q1 2011
Wacker Neuson on „ConExpo“ fair Las Vegas in March 2011:visitors were impressed by broad portfolio and latest innovations
Reference (apr02) 3
Summary – Q1 2011: strongest quarter since 2 years
Q1 11 vs. Q1 10
Good weather conditions -> early beginning of construction season
Earthquake and nuclear catastrophe in Japan
Migration to SAP
Revenues up by 40.9 percent to EUR 211.8 million, EBITDA margin up to12.2%
Optimized cost structure -> high gross profit margin
High light equipment sales particularly triggered by demand in US
Strong revenues of compact equipment; new orders for agriculture all time high
High rental revenue due to high investments in prior years
Equity ratio of 76.1%, low net debt
Q1 11 vs. Q4 10
Revenues and earnings exceed Q4 2010, Gross margin Q1 11 > Q4 10
Catch-up effects due to early start of winter season in Nov. 10
Increased forecast
Reference (apr02) 4
Deliver on promises: improvement of gross margin
Q1 comparison 08 – 11
(as %)
-20,0%
-10,0%
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
Q1/08 Q1/09 Q1/10 Q1/11*
Gross margin EBITDA margin EBIT margin*Q1/11 Gross margin without service technicians
*
Deliver on promises:
“In 2011, we plan to match 2008 revenue but exceed 2008 earnings” (Annual Report 2010, p. 6)
Gross profit margin on 2008 level despite less revenues: EUR 211.8 million in Q1 2011 compared to EUR 228.2 million in Q1 2008
Lower SG&A cost Q1 2011 vs. 2008 shows improved cost structure (EUR 2.5 million)
34.4 % 34.0%
12.9%8.4%
12.2%
7.1%
-9.0%
23.1%
-16.4%
30.3%
2.4%
-3.9%
Reference (apr02)
237,8228,2
244,2
212,3
185,6
137,3156,5 149,0 154,2 150,3
205,3196
206,3 211,8
0
50
100
150
200
250
300
Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11-20
-10
0
10
20
30
40
50
60
RevenueEBITDA-margin
5
Revenues Q1 2011 exceeds Q4 2010 (against seasonal curve)
FY 2011 expected to exceed 2008-level
(Revenues in € million) (EBITDA margin as %)
Seasonal pattern 2008 – 2010 (as % of FY revenues)
2010 2009 2008
Q1 20% 23% 26%
Q2 27% 26% 28%
Q3 26% 25% 24%
Q4 27% 26% 22%
Comparison with Q4 2010
Revenue growth Q1 2011 to Q4 2010 by + 2.7%
Gross profit margin Q1 2011 (34.0%)* > Q4 2010 (31.5%)
*Q1/11 Gross margin without service technicians
Reference (apr02) 6
Peer group performance 1 year (change)
Wacker Neuson share
(As a %)
(Apr. 29, 2011)
ISIN DE000WACK012WKN WACK01 Reuters WACGn.DE
Bloomberg WAC GRIndices SDAX, DAXplus family, CDAX, GEX, Classic All SharesShare Prime All Share
Shareholder structure
Free float32.5 - thereof management: 1.5
Family 67.5
Wacker Neuson +30.81 % DAX +22.29%
SDAX +34.61%
GEX +23.57%
Manitou +70.95%
Atlas Copco +49.77%
Terex +24.93%
Deutz +47.12%
Palfinger +42.78%
Caterpillar +63.12%
Bauer +13.55%
Cramo +21.21%
Ramirent +34.66%
(As a %)
Key figures sharein EUR Q1/2011
High 13.49
Low 10.17
Average 12.25
Book value per share (03/31/11) 11.85
Earnings per share 0.13
Dividend proposal to AGM (5/26/11) 0.17
Reference (apr02) 7
Overview
Outlook
Financials Q1
Summary Q1 2011
2011: Four if-Awards for Compact Equipment machines
Reference (apr02) 8
3M/11 As % of revenue
3M/102 As % of revenue
Change in %
Revenue 211.8 100% 150.3 100% +40.9 %
Gross profit 69.1 32.6% 42.4 28.2% +63.1 %
Sales and service expenses (35.6) (16.8%) (30.9) (20.5%) +15.3%
Research and development expenses (5.6) (2.7%) (5.2) (3.4%) +9.3%
General administrative expenses (14.6) (6.9%) (13.1) (8.7%) +11.5%
SG&A incl. oth.Inc./oth.Exp. (54.2) (25.6%) (48.3) (32.1) +12.2%
EBITDA 25.9 12.2% 3.7 2.4 +606.5%
EBIT1 14.9 7.1% (5.9) (3.9%) -
Net profit 9.0 4.3% (5.7) (3.8%) -
Net profit per share in € 0.13 (0.08) -
Income statement
Strong revenue and earnings increase (Income statement, extract)
(€ million)
1 incl. PPA = Purchase Price Allocation on EBIT: Q1/2011: EUR 0.9 million (Q1/2010: EUR 0.9 million)2 Expenses for service technicians are reported in the income statement under manufacturing costs for the first time in Q1 2011. Previously, this cost factor was
reported under selling expenses. The equivalent figures from the previous year (Q1 2010) were adjusted by EUR K 3,203.
Reference (apr02) 9
Quarterly revenues comparison 2007 - 2011
Q1 2011: Best quarter since over 2 years
(€ million)
0
50
100
150
200
250
Q1 Q2 Q3 Q4
2007 2008 2009 2010 2011
-7.2%
+40.9%
2011 vs. 2008
2011 vs. 2010*Q1 2007: does not include Neuson Kramer (Merger in October 2007)
Reference (apr02) 10
Recovery of economy drives product sales worldwide
Sales Europe(€ million)
Sales Americas(€ million)
Sales Asia(€ million)
Q1/10 Q1/11
+37.7%
110.0151.4
Sales Light Equipment(€ million)
Sales Compact Equipment(€ million)
Sales Services(€ million)
Q1/10 Q1/11
+60.7%
33.053.0
Q1/10 Q1/11
+0.8%7.4 7.4
Q1/10 Q1/11
+43.5%
59.385.1
Q1/10 Q1/11
+54.0%
55.0
84.6
Q1/10 Q1/11
+18.7%37.2 44.2
Reference (apr02) 11
As a % of Revenues: Compact equal to Light Equipment
Regions Business segments1
(as a % (previous year))
1 Consolidated sales before discounts
Asia3.5 (4.9)
Europe 71.5 (73.2)
America 25.0 (21.9)
Compact Equipment 39.6 (36.3)
Light Equipment 39.8 (39.1)
Service 20.6 (24.6)
(as a % (previous year))
Agriculture 16.0 (15.2)
Reference (apr02) 12
Free Cash flow Operative Cash flowInvestments fixed assets Depreciation
9.6
Use of financial strength in upswing
Investments fixed assets and depreciation Free and operative cash flow
Q1/10 Q1/11
23.015.6
-27.4 -27.7
Q1/10 Q1/11
(€ million) (€ million)
11.0 -2.3-10.5
Q1 2011 Dec. 31, 10 Q1 2010 Change vs.Dec. 31, 10
Equity ratio (before minorities) 76.1% 80.6% 78.9% -4.5pp
Working Capital in EUR Mio. 301.9 269.3 233.1 12.1%
Gearing 5,0% 1.7% (0.3%) -
Net debt in EUR Mio. 41.8 13.7 (2.0) 205%
Reference (apr02) 13
Working capital investment impacts cash flow
Change in cash and cash equivalents Q1 2011
(€ million)
Cash flowfrom
financingactivities
Effect ofExchange
rates
Net debt position
Dec. 31,10
Cash flow from
operatingactivitiesbefore WorkingCapital
investments
WorkingCapital
Investments
Cash flow from
operatingActivities
after WorkingCapital
investments
Cash flow from
investingactivities
Cash andcash
equivalentsDec. 31, 10
Cash andcash
equivalentsMar. 31, 11
Net debt position
Mar. 31, 11
36.6
17.3
-27.8 -10.5
-17.2
17.9
-0.2
26.5
13.7
41.8
Reference (apr02) 14
Overview
Outlook
Financials Q1
Summary Q1 2011
US-Compact Class Product Line 2010 (Launch of CE since 2008)
Reference (apr02) 15
Wacker Neuson’s strategy
Market penetration in agriculture (e.g. Italy, Russia)Introduction of new machinesInternational expansion
Alliance Caterpillar (CE)
Strategic alliance for miniexcavators up to 3t (20 years)Growing marketBoth companies to focus on respective areas of expertise
Launch of new products (CE)
Targets Targets
Higher volumes for more capacity utilization at production plantPlatform concept dilutes development and production costsGain of market share in Europe and USA
Rising demand for foodBiofuels and other renewable resourcesFewer but larger holdings Greater need for machinery
Wider portfolio for agriculture (CE)
Global launch focused on growing markets (outside EU)Development of exclusive dealers Maximization of potential synergies from mergerGain of market share
1 2 3 Replacement expenditures (LE)
4
Higher need for innovativelight equipment worldwideIncreased expenditure onreplacement equipmentamong rental firms
Strengthening qualityand innovation leadership positionStrengthening marketposition (esp. inSouth America, Indiaand China)
Reference (apr02) 16
Holding structure incl. Germany - proposal to AGM
Wacker Neuson SECentral group/corporate functions
Operating segments -> 3 German affiliates
Sales Germany Munich
Sales Europe Munich
Production Germany Munich
…(over 30 existing 100%
affiliates worldwide)
A draft drop-down and transfer agreement will be proposed for approval at the AGM
Wacker Neuson SE shall hold all shares and 100 percent of the capital in the three new German affiliates
No changes for shareholders in our company as Wacker Neuson SE will remain the sole owner of the new companies.
New legal structure will increase transparency and efficiency without expanding management headcount (no additional cost)
The wholly owned American subsidiary, Wacker Neuson Corporation, also transitioned from a parent company to a holding structure on January 1, 2011
unchangednew
Reference (apr02)
Q1 08 Q1 09 Q1 10 Q1 11
Order intake Construction Order intake Agriculture
17
New orders indicates high demand of compact equipment
New orders Q1 2008- Q1 2011
(units)
Reference (apr02)
0,0
200,0
400,0
600,0
800,0
1000,0
1200,0
2007 2008 2009 2010 2011e 2012e0
5
10
15
20
25
30
18
Outlook – Increased forecast for 2011 and 2012
FY 2012 expected to exceed pre-crisis-level
Financial targets
Revenue growth 2011 to EUR 880-920 million (16-21percent)
EBITDA margin 2011 of 12-13 percent
2011 Investments in property, plant and equipment approximately EUR 100 million
Working capital to revenue ratio 2011 below 35 percent
(Revenues € million) (EBITDA margin in %)
870.3
597.0
979.51
757.9
880 - 920> 1,000
1 Pro forma – as if the two companies had been consolidated for the entire year 2007 (merger in October 2007)
16.1%
11.6%
4.6%
10.3%
15%
12-13%
Reference (apr02)
Appendix
Reference (apr02) 20
Financial Calendar 2011 and IR Contact
May 17
May 20
May 26
June 15
June 16
August 11
November 11
IR Contact
Investor Relations Department
Preussenstrasse 41, 80809 Munich, Germany
Phone: +49 – 89 – 35402 – 173, Fax: +49 – 89 – 35402 – 298
Financial Calendar 2011
2011 Pan Europe Forum, London, UK
German & Austrian Corporate Conference
AGM, Munich
Roadshow Zürich
Roadshow Wien
Publication of half-year report 2011
Publication of nine-month report 2011
Reference (apr02) 21
Disclaimer
This presentation contains facts and forecasts that relate to thefuture development of the Wacker Neuson Group and its companies.The forecasts are estimates that we have made on the basis of allinformation available to us at this moment in time. Should theassumptions underlying these forecasts prove not to be correct,actual events may deviate from expectations as set forth at thepresent time.
