Cem Peksaglam (CEO) – Günther C. Binder (CFO)
August 4, 2015
Results Q2 2015
Agenda
2
Outlook
Overview Q2/15
and H1/15
Financials Q2/15
and H1/15
Q2 and H1/15 at a glance – High and Low Lights At a glance
Increase in revenue despite market crises in many countries mainly outside of Europe and US (revenue share light equipment ↓)
Change in product and regional mix impacted margins (revenue share compact equipment ↑; high margin service business ↓)
Strengthening position in core markets
Increase in agricultural business despite negative market development
Further increase of working capital leads to negative free cash flow for H1
Q2/15: Strong increase in revenue; investment in further growth effect profit
Revenue: +16% yoy to EUR 382 m (adjusted for currency effects: +10%); Q2/qoq +18%
EBITDA: -11% yoy to EUR 51 m; margin: 13.3% (Q2/14: 17.3%)
EBIT: -18% yoy to EUR 34 m; margin: 8.9% (Q2/14: 12.6%)
EPS: -15% yoy to EUR 0.34 (Q2/14: EUR 0.40)
H1/15: Peaks in revenue and earnings
Revenue: +14% yoy to EUR 706 m (adjusted for currency effects: +8%)
EBITDA: +6% yoy to EUR 98 Mio. Euro; margin: 13.9% (H1/14: 15.0%)
EBIT: +4% yoy to EUR 66 Mio. Euro; margin: 9.3% (H1/14: 10.2%)
EPS: +6% yoy to EUR 0.64 (H1/14: EUR 0.61)
3
New record in H1 revenue and earnings
Worldwide sales construction machinery Q1/15
4
Europe:
+6%
Rest of Asia:
-10%
North America:
+14%
Latin America:
-24%
China:
-40%
India:
+/-0%
Russia:
-70%
Oceania:
-8%
Africa:
-13%
Sales of earth-moving machinery; Source: VDMA, ISC-Statistics
Growth only in North America and Europe
H1/15: Strong revenue growth in Euros1
459,2510,3
H1/14 H1/15
5
Europe2
+11% (+10%)
203,4 213,2
H1/14 H1/15
Light equipment3
+5% (-6%)
143,4
175,0
H1/14 H1/15
Americas2
+22% (+3%)
297,2
370,2
H1/14 H1/15
Compact equipment3
+25% (+22%)
17,421,1
H1/14 H1/15
Asia-Pacific2
+21% (+8%)
127,9 133,4
H1/14 H1/15
Services3
+4% (-0%)
1 In brackets: adjusted for currency effects; 2 Nominal, after cash discounts; 3 Nominal, before cash discounts
(€ million)
(€ million)
(€ million)
(€ million)
(€ million)
(€ million)
Three year comparison
257292
324 329 328
382
586620
706
0,0%5,0%10,0%15,0%20,0%25,0%30,0%35,0%40,0%45,0%50,0%55,0%60,0%65,0%70,0%75,0%80,0%85,0%90,0%95,0%100,0%
0
100
200
300
400
500
600
700
800
Q1/13 Q1/14 Q1/15 Q2/13 Q2/14 Q2/15 H1/13 H1/14 H1/15
6
Exceptional high EBIT Margin in Q2/14
(Revenue in € million)
EBIT Margin 4.3% 7.6% 9.8% 8.9% 12.6% 8.9% 6.9% 10.2% 9.3%
(Revenue in € million; EBIT Margin as a %)
Long term growth on track
7
Revenue and EBIT Margin H1 (2011–2015)
+14%
+6%
+5%
+17%
+48%
Revenue EBIT
+35%
(€ million) H1/11 H1/12 H1/13 H1/14 H1/15 CAGR H1/15 vs. H1/11
Revenue 478.7 558.1 586.1 620.0 706.4 10.2% 47.6%
EBIT 48.6 49.2 40.4 63.4 65.7 7.8% 35.2%
Net income 31.5 30.9 24.9 42.5 45.2 9.4% 43.5%
CFI1 -52.5 -59.1 -49.6 -51.9 -54.7
CFI – D&A2 -29.5 -32.1 -20.2 -22.4 -22.3
Total assets 1,130.4 1,323.6 1,393.9 1,403.4 1,615.8 9.3% 42.9%
Equity3 839.6 902.7 913.0 951.9 1,045.9 5.6% 24.5%
Dividend4 11.9 35.1 21.0 28.1 35.1
Market Capitalization 833.3 732.3 725.9 1,204.3 1,318.6 12.2% 58,2%
Number of employees 3,285 3,907 4,093 4,217 4,573 8.6% 39.2%
Long term growth on track
8
5 years comparison
1 Cash flow from investment activities; 2 Depreciation & Amortization; 3 before minority interests; 4 for the previous FY
Agenda
9
Outlook
Overview Q2/15
and H1/15
Financials Q2/15
and H1/15
Q2/15: Revenue increase
10
Q2/15 As % of
revenue
Q2/14 As % of
revenueChange in %
Revenue 382.1 100.0 328.4 100.0 16.4
Gross profit 111.1 29.1 100.9 30.7 10.1
Sales and service expenses 48.6 12.7 41.3 12.6 17.7
Research and development expenses 9.3 2.4 6.9 2.1 34.8
General administrative expenses 17.8 4.7 14.9 4.5 19.5
Operating expenses1 75.6 19.8 63.0 19.2 20.0
EBITDA 50.8 13.3 56.8 17.3 -10.6
EBIT 34.0 8.9 41.3 12.6 -17.7
Net profit 23.9 6.3 28.2 8.6 -15.2
Net profit per share in € 0.34 0.40
Number of employees 4,573 4,217 8.4
Income statement (extract) and number of employees
(€ million)
1 without other income/expenses
H1/15: Revenue increase
11
H1/15 As % of
revenue
H1/14 As % of
revenueChange in %
Revenue 706.4 100.0 620.0 100.0 13.9
Gross profit 207.5 29.4 186.7 30.1 11.1
Sales and service expenses 93.9 13.3 83.3 13.4 12.7
Research and development expenses 17.4 2.5 13.8 2.2 26.1
General administrative expenses 35.2 5.0 30.7 4.9 14.7
Operating expenses1 146.5 20.7 127.8 20.6 14.6
EBITDA 98.2 13.9 93.0 15.0 5.6
EBIT 65.7 9.3 63.4 10.2 3.6
Net profit 45.2 6.4 42.5 6.9 6.4
Net profit per share in € 0.64 0.61
Number of employees 4,573 4,217 8.4
Income statement (extract) and number of employees
(€ million)
1 without other income/expenses
Cost structure
12
Operating expenses: 21% of group revenue
257
329
276297 292
328316
348
324
382
15,9%14,2% 13,9% 13,7% 14,4%
12,6% 13,2% 13,1% 13,9%12,7%
2,8% 2,1% 2,4% 1,7% 2,4% 2,1% 2,3% 2,2% 2,5% 2,4%
7,3%
4,8% 5,2% 6,1% 5,4% 4,5% 5,0% 4,9% 5,4% 4,6%
26,0% 21,1% 21,5% 21,6% 22,2%
19,2%20,6% 20,1%
21,8%19,8%
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
35,0%
40,0%
0
50
100
150
200
250
300
350
400
Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15
Revenue Sales expenses, R&D costs &General and administrative expenses
Sales expenses R&D costs General and administrative expenses
(€ million; as % of revenue)
1 before capitalized expenses; H1/15 incl. capitalized expenses 3.2%
1
H1/13: 23.2% H1/15: 20.7%H1/14: 20.6%
H1/15: Development of profit per region
13
EBIT-change by region H1/15 vs. H1/14
(€ million)
0
10
20
30
40
50
60
70
80
EBIT H1/14 Europe Americas Asia-Pacific Consolidation EBIT H1/15
H1/15 vs. H1/14 Europe Americas Asia-Pacific Total
Revenue +11% +22% +21% +14%
EBIT +13% +25% +166% +4%
EBIT Margin (H1/14)1 8.2% (8.4%) 2.6% (2.6%) 3.6% (1.8%) 9.3% (10.2%)
63.4
+8.2 +2.4 +0.8 -9.1
65.7
1 EBIT Margin of regions on total external sales
H1/15: Working capital development
14
213,3327,6 338,8 355,6
494,9177,5
176,3210,3 204,1
234,4
-69,0 -67,7 -62,4 -72,0 -98,7
June 30, 2011 June 30, 2012 June 30, 2013 June 30, 2014 June 30, 2015
Inventories Trade receivables Trade payables
Working Capital ratio (3M annualized revenue)
30.1% 38.4% 37.0% 37.1% 41.3%
Increase of inventories enables flexibility for short-term demand support revenue increase
(€ million)
+15%
WC: +29%
630.7
487.7
+37%
+39%
486.7436.2
321.8
Working capital H1/11 – H1/15
H1/15: Investments and cash flow development
H1/14 H1/15
H1/14 H1/15
H1/14 H1/15
(€ million)
H1/14 H1/15
(€ million) (€ million)(€ million)
-1.0
-43.2-51.9
-54.7
29.632.5
52.9
11.5
Cash flow from
investment activitiesDepreciation
Cash flow from
operating activitiesFree cash flow
Decrease of operating cash flow due to investments in working capital positive free cash flow FY 2015 expected
+5%
+10%
15
-78%
69
195255
203256
840907 913
952
1.046
8%
22%
28%
21%
25%
0%
5%
10%
15%
20%
25%
30%
35%
40%
0
200
400
600
800
1.000
H1/11 H1/12 H1/13 H1/14 H1/15
Net financial debt Equity before minority interests Gearing as a %
H1/15: Gearing and equity
16
High equity ratio of 65%, increase of net debt by 26% due to WC increase
(€ million)
Equity, net debt and gearing H1/11 – H1/15
+26%
Share price development since Jan. 1, 2015
17
in € 2011 2012 2013 2014 H1/14 H1/15
Earnings per share 1.22 0.77 0.87 1.30 0.61 0.64
Dividend payment 0.50 0.30 0.40 0.50 – –
End of period 9.55 10.35 11.49 16.96 17.17 18.80
High 13.49 13.45 12.75 18.00 17.65 24.60
Low 8.35 9.06 9.24 11.49 11.73 16.30
Market capitalization (in € m) 669.8 725.9 805.6 1,189.2 1,204.3 1,318.6
ISIN / WK DE000WACK012 / WACK01
Reuters /
Bloomberg
WACGn.DE / WAC GR
Indices SDAX, DAXplus family, CDAX,
GEX, Classic All Shares
Share Prime All Share
Total shares 70.140.000
Shareholder
structure
63% Family; 37% Free float
(thereof management: 0.5)
* Manitou, Haulotte, Palfinger, Caterpillar, Terex,
Ramirent, Cramo, Atlas Copco, Bauer, Deutz*
Share price performance
Key figures share
+8%
Agenda
18
Outlook
Overview Q2/15
and H1/15
Financials Q2/15
and H1/15
0
5
10
15
20
25
30
0,0
200,0
400,0
600,0
800,0
1.000,0
1.200,0
1.400,0
1.600,0
2014 2015e
Forecast 2015 (unchanged)
17
(Revenue in € billion)
Revenue and Margins 2014–2015e Wacker Neuson Group H2/15e
1.28
+9-13%
EBIT margin
10.6%
1.40–1.45
EBIT margin
9.5-10.5%
Solid development in core markets (Europe, USA)
Greater penetration in core markets
(especially via cross-selling)
Growth in service segment with influence on margins
Full order book promises good visibility
New technologies and innovations
Focus on diversification (target groups)
Process optimization, leveraging synergies
Decrease of working capital, increase free cash flow
Less positive impact from FX effects
Regional drop in demand
(e.g. Brazil, Canada, Russia)
Industry crises (Mining, Ag, Oil & Gas)
Financial calendar and IR contact
19
Financial Calendar 2015
August 04 Publication of half-year report 2015
September 10 Commerzbank Sector Conference 2015, Frankfurt
September 22 Baader Investment Conference 2015, Munich
September 23 Fourth German Corporate Conference 2015, Munich
November 12 Publication of nine-month report 2015,
Analyst Conference, Frankfurt
November 23-25 German Equity Forum 2015, Frankfurt
Numerous international trade fairs, roadshows and conferences
IR contact
Investor Relations Department
Preussenstrasse 41, 80809 Munich, Germany
Phone: +49-89-35402-713, Fax: +49-89-35402-298
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completeness or correctness of this information or opinions contained herein.
Certain statements contained in this document may be statements of future expectations and other forward
looking statements that are based on management‘s current view and assumptions and involve known and
unknown risks and uncertainties that could cause actual results, performance or events to differ materially
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DisclaimerCautionary note regarding forward-looking statements
20