Cem Peksaglam (CEO) – Günther C. Binder (CFO)
August 4, 2016
Results Q2 2016
Agenda
2
Outlook
Overview Q2/16
and H1/16
Financials Q2/16
and H1/16
Q2 and H1/16 at a glance – High and Low Lights At a glance
Revenue almost on PY level despite market weaknesses, profitability improved vs. Q1/16
Europe: Solid demand in construction in Central & North, downturn in ag business (H1/16 revenue ag: -5% vs. PY)
Americas: Oil & gas crisis in NA, Brazil and Mexico weak (H1 revenue: -14% vs. prev. year)
Inventory program results in improvement; Working Capital ratio < 40%
Q2/16: Revenue and profits almost on record level of PY
Revenue: -0% yoy to EUR 381 m (adjusted for currency effects: +2%)
EBITDA: -1% yoy to EUR 51 m; margin: 13.2% (Q2/15: 13.3%)
EBIT: -2% yoy to EUR 33 m; margin: 8.8% (Q2/15: 8.9%)
EPS: -6% yoy to EUR 0.32 (Q2/15: EUR 0.34)
H1/16: Weak Q1/16 effects H1/16
Revenue: -1% yoy to EUR 698 m (adjusted for currency effects: +1%)
EBITDA: -14% yoy to EUR 85 Mio. Euro; margin: 12.1% (H1/15: 13.9%)
EBIT: -23% yoy to EUR 51 Mio. Euro; margin: 7.3% (H1/15: 9.3%)
EPS: -25% yoy to EUR 0.48 (H1/15: EUR 0.64)
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Revenue and earnings improved in Q2 /16 vs. Q1/16; increasing market uncertainties
(Revenue in € million; EBIT Margin as a %)(Revenue in € million; EBIT Margin as a %)
Multi-year comparison (5 years)
4
Revenue and EBIT Margin Q2 (2012–2016) Revenue and EBIT Margin H1 (2012–2016)
+25%+34%
+14%
+16%
H1/16: Lower sales in Americas drags business down1
510,3 522,0
H1/15 H1/16
5
Europe2
+2% (+4%)
213,2 203,6
H1/15 H1/16
Light equipment3
-5% (-2%)
175,0150,1
H1/15 H1/16
Americas2
-14% (-12%)
370,2 366,6
H1/15 H1/16
Compact equipment3
-1% (+0%)
21,1
25,7
H1/15 H1/16
Asia-Pacific2
+22% (+28%)
133,4 137,8
H1/15 H1/16
Services3
+3% (+5%)
1 In brackets: adjusted for currency effects; 2 Nominal, after cash discounts; 3 Nominal, before cash discounts
(€ million)
(€ million)
(€ million)
(€ million)
(€ million)
(€ million)
Construction and other industries
Agriculture
Services
H1/16 H1/15
66% 67%
14% 15%
19% 19%
Ag business (Weidemann, Kramer, Claas)
H1/15 H1/16
6
(in €m)
105.699.8
Weak ag business
Q1/16 vs. Q1/15: -11%
Q2/16 vs. Q2/15: +1%
(2015 vs. 2014: -2%)
-5%
Revenue breakdown for H1/16 Revenue1 H1/16 vs. H1/15
(% of revenue)
1 Nominal, before cash discounts
1 No calendar fiscal year, ending March 31; figures showing Q1.
Company Change in Profit H1 (Margin)
Peer 1 (Constr./Agri.) Recr. Op. Inc.: +26% (margin: 5.6%)
Wacker Neuson EBIT: -23% (margin: 7.3%)
Peer 2 Construction division Adj. op. profit -39% (margin: 3.3%)
Peer 3 Construction division Op. Income: -32% (margin: 4.4%)
Peer 4 Construction division Op. Profit -7% (margin: 12.3%)
Peer 5 Construction division1 Op. Profit: -55% (margin: 1.5%)
Peer 6 Agriculture division Op. Profit: -16% (margin: 7.9%)
Peer 7 Construction division1 Profit: -38% (margin: 7.6%)
Peer 8 Construction division Op. Profit: -26% (margin: 11.7%)
Peer 9 Construction division Op. Profit: -11% (margin: 2.7%) -16%
-14%
-12%
-12%
-9%
-8%
-7%
-5%
-1%
1%
-20% -15% -10% -5% 0%
H1/16: Comparison with peer group
7
Change revenue H1/16 vs. H1/15
H1/16: Comparison with peer group divisions
Wacker Neuson plans to open new factory in China
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Details
Located in Pinghu, 30 km from Shanghai.
Starting with the production of compact excavators for local
market, more products might follow.
Start of production: Q1/2018.
Signing of contract in Pinghu, China: from left to right: Mr. Cem Peksaglam (CEO Wacker Neuson SE),
Mr. Zhou Diming (Director of the Administration Committee of Pinghu Economic-Technological
Development Zone)
Google Maps
Agenda
9
Outlook
Overview Q2/16
and H1/16
Financials Q2/16
and H1/16
Q2/16: Revenue adjusted for currency effects increases
10
Q2/16 As % of
revenue
Q2/15 As % of
revenueChange in %1
Revenue 381.4 100.0 382.1 100.0 -0.2 (2.0)
Gross profit 107.7 28.2 111.1 29.1 -3.1
Sales and service expenses -50.6 -13.3 -48.6 -12.7 4.1
Research and development expenses -9.6 -2.5 -9.3 -2.4 3.2
General administrative expenses -17.7 -4.6 -17.8 -4.7 -0.6
Operating expenses2 -77.9 -20.4 -75.7 -19.8 2.9
EBITDA 50.5 13.2 50.8 13.3 -0.6
EBIT 33.4 8.8 34.0 8.9 -1.8 (-1.0)
Net profit 22.6 5.9 23.9 6.3 -5.4
Net profit per share in € 0.32 - 0.34 - -5.9
Number of employees 4.682 4.573 2.4
Income statement (extract) and number of employees
(€ million)
1 in brackets: adjusted to discount currency effects
2 without other income/expenses
31,734,0
15,5
22,4
17,3
33,4
9,8%8,9%
5,0%6,3%
5,5%
8,8%
0,0%
2,0%
4,0%
6,0%
8,0%
10,0%
12,0%
14,0%
16,0%
18,0%
20,0%
0,0
5,0
10,0
15,0
20,0
25,0
30,0
35,0
40,0
Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16
EBIT EBIT margin
Q2/16: Development of profit since Q1/15
11
EBIT development Q1/15-Q2/16
(EBIT in € million; EBIT Margin as a %)
Revenue in € million 324.3 382.1 311.0 357.9 316.4 381.4
H1/16: Strong H1/15 figures are hard to reach
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H1/16 As % of
revenue
H1/15 As % of
revenueChange in %1
Revenue 697.8 100.0 706.4 100.0 -1.2 (0.5)
Gross profit 194.7 27.9 207.5 29.4 -6.2
Sales and service expenses -96.6 -13.8 -93.9 -13.3 2.9
Research and development expenses -18.4 -2.6 -17.4 -2.5 5.7
General administrative expenses -33.9 -4.9 -35.2 -5.0 -3.7
Operating expenses2 -148.9 -21.3 -146.5 -20.7 1.6
EBITDA 84.5 12.1 98.2 13.9 -14.0
EBIT 50.7 7.3 65.7 9.3 -22.8 (-22.2)
Net profit 33.8 4.8 45.2 6.4 -25.2
Net profit per share in € 0.48 - 0.64 - -25.2
Number of employees 4.682 4.573 2.4
Income statement (extract) and number of employees
(€ million)
1 in brackets: adjusted to discount currency effects
2 without other income/expenses
H1/16: Comparison of EBIT vs. previous year
13
1
1 Other income & expense
Earnings negatively impacted in crisis-hit emerging markets/industries and regional/product mix.
(in € m)
0
10
20
30
40
50
60
70
EBIT H1/15 Revenue volume effect Revenue margin effect S,G&A Other EBIT H1/16
65.7 -2.5-10.3
-2.5 +0.3 50.7
EBIT-change H1/16 vs. H1/15
H1/16: Development of profit per region
14
EBIT-change by region H1/16 vs. H1/15
(€ million)
0
10
20
30
40
50
60
70
80
EBIT H1/15 Europe Americas Asia-Pacific Consolidation EBIT H1/16
H1/16 vs. H1/15 Europe Americas Asia-Pacific Total
Revenue +2% -14% +22% -1%
EBIT -26% -94% -285% -23%
EBIT Margin (H1/15)1 10.4% (14.4%) 0.5% (6.8%) -9.3% (6.2%) 7.3% (9.3%)
65.7 -19.2
-11.1
-3.7
+19.0 50.7
1 EBIT Margin of regions on total external sales
H1/15 H1/16
H1/16: Investments and cash flow development
H1/15 H1/16
H1/15 H1/16
(€ million)
H1/15 H1/16
(€ million) (€ million)(€ million)
-43.2
-24.5
-54.7
-60.2
32.533.8
11.5
35.7
Cash flow from
investment activitiesDepreciation
Cash flow from
operating activitiesFree cash flow
Increase of operating cash flow due to working capital reduction positive free cash flow FY 2016 expected
+10%
4%
15
+210%
-43%
H1/16: Working capital development
16
328 339 356
495 445
176210 204
234240
-68 -62 -72 -99 -92
June 30, 2012 June 30, 2013 June 30, 2014 June 30, 2015 June 30, 2016
Inventories Trade receivables Trade payables
Working Capital ratio (3M annualized revenue)
38.4% 37.0% 37.1% 41.3% 38.9%
Inventory program shows results; Working Capital ratio < 40%
(€ million)
+3%
WC: -6%
593631
-7%
-10%
488487436
Working capital H1/12 – H1/16
195255
203256 258
907 913952
1.046 1.052
22%
28%
21%
25% 25%
0%
5%
10%
15%
20%
25%
30%
35%
40%
0
200
400
600
800
1.000
H1/12 H1/13 H1/14 H1/15 H1/16
Net financial debt Equity before minority interests Gearing as a %
H1/16: Gearing and equity
17
High equity ratio of 65% and low gearing
(€ million)
Equity, net debt and gearing H1/12 – H1/16
+1%
Share price development
18
in € 2013 2014 2015 H1/15 H1/16
Earnings per share 0.87 1.30 0.94 0.64 0.48
Dividend payment 0.40 0.50 0.50 - -
End of period 11.49 16.96 14.23 18.80 13.93
High 12.75 18.00 24.60 24.60 15.80
Low 9.24 11.49 11.12 16.30 11.44
Book value1 13.34 14.42 15.17 14.91 15.00
Market capitalization (in € m) 805.6 1,189.2 998.1 1,318.6 977.1
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%)
Share price performance since January 2016
Key figures share
1 before minority interests
%
Agenda
19
Outlook
Overview Q2/16
and H1/16
Financials Q2/16
and H1/16
0
5
10
15
20
25
30
0
200
400
600
800
1.000
1.200
1.400
1.600
2015 2016e
(Revenue in € million)
Revenue and margins 2015–2016e
1,3750% to +4%
EBIT Margin
7.5%
1,375–1,425
Revised forecast for 2016
20
Investments of ~ 100 m €, positive free cash
Previous forecast: Revenue growth +2% to +5%, EBIT Margin 7.0% to 8.0%
EBIT Margin
6.5-7.5%
Financial calendar and IR contact
Financial Calendar
IR contact
Investor Relations Department
Preussenstrasse 41, 80809 Munich, Germany
Phone: +49-89-35402-713, Fax: +49-89-35402-298
August 4, 2016 Publication of half-year report 2016; Analysts' Conference Call
September 20, 2016 Baader Investment Conference, Munich
September 21, 2016 German Corporate Conference, Munich
November 10, 2016 Publication of nine-month report 2016; Analysts' Conference Call
Numerous international trade fairs, roadshows and conferences
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DisclaimerCautionary 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 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
from those expressed or implied in such statements.
None of Wacker Neuson SE or any of its affiliates, advisors or representatives shall have any liability
whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its
content or otherwise arising in connection with this document.
This document does not constitute an offer or invitation to purchase or subscribe for any securities and neither
it nor any part of it shall form the basis of or be relied upon in connection with any contract or commitment
whatsoever.
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