Company Presentation
March 2018 Overview
Company profile
Our future Our business model
2 Facts and figures
Group headquarters Munich, Germany
Production and development locations Germany, Austria, USA, the Philippines*, Brazil, Serbia, China
Turnover Affiliates worldwide > 50 (€ bn)
Sales and service stations > 140 +13% 1.53 Product groups > 300 1.36
Property rights and patents ~ 280
Employees > 5.500
Stock exchange listing since May 2007 2016 2017
Headquarters Munich, Germany * Integration of production Manila (Philippines) into Pinghu (China)
3 Group organization Wacker Neuson SE Group Executive Board Headquarters, group-wide functions (Group controlling, group accounting, treasury, legal, internal auditing, real estate, investor relations, Corporate Communication, CSR, human resources, group marketing, IT, Purchasing, Quality Management… )
100% Operating companies (individual legal entities, >50 affiliates)
Europe (all 100%) Americas (all 100%) Asia-Pacific (all 100%)
Wacker Neuson Produktion Wacker Neuson Vertrieb Wacker Neuson Vertrieb Wacker Neuson Máquinas Ltda., Jundiaí (near Wacker Neuson Manila, Inc., Dasmariñas (near GmbH & Co. KG, Deutschland GmbH & Co. Europa GmbH & Co. KG, São Paolo), Brazil Manila), Philippines Reichertshofen, Germany KG, Munich, Germany Munich, Germany
Weidemann GmbH, Wacker Neuson (Pty) Ltd., Wacker Neuson srl con socio Wacker Neuson Ltda., Huechuraba (near Wacker Neuson Pty Ltd., Springvale (near Diemelsee-Flechtdorf, Florida (near Johannesburg), unico, San Griorgio di Plano Santiago), Chile Melbourne), Australia Germany South Africa (near Bologna), Italy
Wacker Neuson Ltd., Mississauga (near Wacker Neuson S.A., Wacker Neuson AG, Wacker Neuson S.A.S., Brie Wacker Neuson Shanghai Ltd., Shanghai, China Torrejón de Ardoz (near Volketswil (near Zurich), Comte Robert (near Paris), Toronto), Canada Madrid), Spain Switzerland France Wacker Neuson S.A. de C.V., Mexico City, Wacker Neuson GmbH, Wacker Neuson s.r.o., Wacker Neuson Ltd., Waltham Wacker Neuson Singapore Pte. Ltd., Singapore Mexico Vienna, Austria Prague, Czech Republic Cross (near London), GB
….. 4 Areas of responsibility for Executive Board and Supervisory Board Executive Board
Martin Lehner Wilfried Trepels Alexander Greschner CEO CFO CSO Production, technology, quality, procurement, strategy/M&A, HR, Finance, audit, IT, Sales, service, marketing legal matters, compliance, supply chain, real estate investor relations, corporate communication, sustainability
Supervisory Board
Hans Neunteufel (Chairman) Kurt Helletzgruber Prof. Dr. Matthias Schüppen Elvis Schwarzmair (employee representative) Ralph Wacker Christian Kekelj (employee representative) 5 Wacker Neuson Group development of revenues
Multi-year comparison 2012–2018e1
(€ m) 1,650 – 1,700 +13% 1,534 +7% -1% +11% 1,375 1,361 1,284 +6% 1,160 1,092
2012 2013 2014 2015 2016 2017 2018e
1 Figures according to IFRS. 6 2017: Revenue growth by regions and divisons1
Europe2 Americas2 Asia-Pacific2
(m€) +11% (+11%) (m€) +22% (+24%) (m€) -5% (-4%) 1129.8 357.5 1020.7 48.9 291.9 46.6
12M/16 12M/17 12M/16 12M/17 12M/16 12M/17
Light equipment3 Compact equipment3 Services3
(m€) +12% (+13%) (m€) +15% (+16%) (m€) +8% (+8%) 320.4 422.7 817.6 297.2 377.9 709.3
12M/16 12M/17 12M/16 12M/17 12M/16 12M/17
1 In brackets: adjusted for currency effects; 2 Nominal, after cash discounts; 7 3 Nominal, before cash discounts; differences from rounding may occur Global footprint
Sales by region 2017 (as %)
Europe 74% Americas 23% Asia-Pacific 3%
More than 50 affiliates and 5,200 dealers in over 12,400 sites worldwide
8 History – innovation from tradition (since 1848)
Focus on simplification of processes of our customers
1930: 1937: 1971: 1991: first electric rammer first internal vibrators first Hoftrac® first articulated trench roller
1925: 1960: … 1848: Foundation Foundation Kramer Foundation machine factory of the Weidemann KG blacksmith's shop Wacker
1933: 1956: 1984: 1987: Kramer tractors electric breakers first mini excavator Allrad-technology Kramer 9 History – innovation from tradition (since 1848)
Focus on simplification of processes of our customers
2001: Merger of the companies Neuson Baumaschinen GmbH 2004: 2008: and Kramer-Werke GmbH 2015: first joystick steering system first cabin dumpers first battery powered rammer
2005: 2007: … Weidemann GmbH Merger to form joins the group Wacker Neuson SE
2001: first six-ton excavator with pivot arm 2010: first compact telehandler 10 Company values Culture of a traditional, family-run business
Shareholder structure
Expertise Passion Entrepreneurship Agility Family Wacker 33% Family Neunteufel 30% No matter what we do, we are We are passionate about As a family-run company, we We understand that needs vary always looking for ways to do it delivering excellent results, feel focus on the challenges that lie from one customer to another and Free float 37% better – and to the highest quality compelled to achieve our goals ahead, taking an open-minded, so we make it our personal standards. We understand the and often reach beyond bold approach to new business business to always respond to benefits that our equipment and ourselves to go the extra mile. opportunities. With a clear focus each new challenge with agility services offer our customers and Challenges inspire us to be more on targets and execution and efficiency. We never lose we know the strengths and creative. We recognize efficiency, we aim for sustainable, sight of the big picture. Organized Number of shares: weaknesses of our competitors. outstanding performance and profitable growth. As employees, in self-starting teams, we ensure 70,140,000 These insights enable us to find celebrate our successes. we pride ourselves on our sense that information is shared quickly new ways of solving problems of initiative, responsibility and and transparently across the and launching innovative reliability, as well as our ability to company. We value and respect products for our customers. think outside the box. each other.
10 Overview
Company profile
Our future Our business model
12 Our brands and target groups
Construction industry, gardening and landscaping firms, municipal services, recycling, railroad/track construction, rescue services, Agriculture, horse farming, tree nurseries etc. energy sector, etc.
13 Product range to meet the full spectrum of customer needs
Light Equipment Compact Equipment Services
Concrete technology Compaction Excavators
Used machines1 Academy
Dumpers Backhoe-loaders Skid Steers
Repair1 & Financing Maintenance1 Demolition Power & Lighting Pumps
Telehandlers Wheel loaders Rental service1 Telematics
Heating
e-Store1 Concrete Solutions
Over 250 product groups More than 40 product groups 1in selected countries
14 Our competitive edge
Leading position across key markets S As a leading global supplier of light and T Outstanding product quality compact equipment, the R Wealth of technical expertise and strong innovative drive Wacker Neuson Group E offers a unique range of High brand visibility products aimed at N optimizing customer Own global sales network G processes. T Focused, flexible production facilities and sophisticated logistics
H Sustainable business practices S Experienced management
15 Beside construction, more industries are gaining of importance
Target group oriented sales: Business segments Markets Light equipment Compact machines Revenue split (2017, as %) Agriculture Renovation/rehabilitation Development Infrastructure (road and highway construction, bridge construction) Gardening and landscaping Handling logistics/port logistics Residential construction Demolition Maintenance/repairs Industry & Recycling Underground construction Light equipment 27% Oil & gas/energy industry Compact equipment 52% Events Services 21% Municipalities
16 Focus on customer processes
Floor/cut-off saws Breakers Compact excavators Wheel loaders Rammers Vibratory plates
Cutting Breaking Excavation Filling Compaction Asphalt compaction
Utility
Light towers Generators Pumps
Innovative and high quality product solutions drives working process economical and ecological – one-stop provider.
17 Development and production sites
Reichertshofen (GER) Pfullendorf (GER) Korbach (GER) Hörsching (AT)
Production / Academy / R&D Production / R&D Production / R&D Production / R&D
. Concrete . All-wheel steered . Articulated steered . Tracked and technology wheel loaders wheel loaders wheeled excavators Internal/external . Telehandlers . Hoftracs® . Track and wheel vibrators, frequency dumpers converters . Telehandlers . Soil and asphalt compaction Vibratory plates, rollers, rammers . Demolition Breakers
18 Development and production sites Itatiba, São Paulo Milwaukee (USA) Kragujevac (Serbia) Pinghu (China) (Brasil) Production / R&D Production Production Production
. Concrete technology . Mobile generators . Premanufactured . Mini-excavators Trowels steel components . Construction . Soil and asphalt equipment for Asia compaction in the course of Rammers, rollers, trench 2018 rollers . Utility Generators, pumps, heater, light towers, lighting . Material handling Skid steer loaders, compact track loaders
19 Selected innovations (I)
Excavator 803 with dual power Continuous overdrive gearbox
. Emission-free and standard diesel • Hydrostatic large-angle drive with engine; one model for two job sites. continuous speed control from 0 – 40 km/h. . Same performance with diesel or HPU • Maximum shear force and tractive force in operation. all driving and working situations. . HPU specially designed for excavator application. . No limitation of working movements.
vls / smart handling Battery-driven rammers
• Maintenance-free electric motor that is started at the push of a button • 100% emission-free work expands the application range (e.g. compaction in trench applications or in urban areas) . Protection against overload by means of the • Same compaction performance as automatic and load-dependent down-telescoping. comparable gasoline-powered rammers . Also safe for inexperienced operators • Low operating and energy costs increased operating safety clear increase in efficiency in daily use. 20 Selected innovations (II)
Vertical Digging System (VDS) Weidemann-branded eHoftrac® 1160
. High performance, low energy. . Shorter digging times through exact vertical digging. . Battery-operated electric wheel loader. . Usual upright seating position . No emission of harmful substances such as More productivity and greater CO2, soot particles or other exhaust gases. efficiency . Up to 5 hours under full workload. Fatigue-free working.
Compatec compaction control Excavators with extremely economical consumption
. Measurement of the relative compaction . 30% higher productivity and 20% less fuel progress during compaction. Protecting the consumption machine: avoidance of over-compaction and . Unique kinematics: up to 20% more overloading. breakout force, greater vertical cut-in depth . Display adapts to the ambient light Ideal for . Total angle of rotation 200 degrees inexperienced users, low acquisition costs. . Better view of the working area . Measurement sensor on the upper mass: lower . Diverse options risk of damage, longer service life. . Available for trench rollers and vibratory plates.
21 Selected innovations (III)
Kramer 5055e all-wheel drive electric wheel loader: Vibratory plates with low hand-arm vibrations
. Zero emissions and extremely low noise . Equipment operation without any time restrictions levels (according to EU directive 2002/44/EG). . First fully electric wheel loader in the 0.55 . Comfortable working without health burden. m³ bucket capacity class . Elimination of obligatory documentation . Performance, maneuverability and user requirement. friendliness all match the conventional . No preventative measures necessary. model . Efficient compaction performance. . Cost effective
RT-SC3 trench roller WM80 two-cycle engine for rammers and gas breakers
. Simple detachment of attachment drums . Emissions fall significantly below current emission to reduce the operating width from 82 cm thresholds and those announced for the future. to 56 cm. . High single stroke impact energy with low . Third infra-red receiving eye emissions. . Increased maneuverability and flexibility. . Typical two-cycle engine: even on uneven terrain . The engine control module with diagnostic fully functional. LEDs monitors machine functions. . Compaction control Compatec available.
22 Wacker Neuson ECO
ECO Seal ECO seal for solutions that are particularly economical and environmentally friendly
23 Wacker Neuson Group leading alternative drive technologies
24 Sustainability Management @ Wacker Neuson Group Ecology Society . Energy- and resource-efficient processes in . Intensive dialogue with customers / production, sales, logistics and administration stakeholders and involving them in the product development process . Tapping unused energy efficiency potentials and reducing costs through energy and . Building a reputation as an attractive employer environmental management systems (ISO . Responsible interaction between colleagues 50001, ISO 14001) and energy use control . Regular involvement in social projects . Environmentally friendly products and (corporate citizenship) solutions for customers (ECO products)
Safety Economy . Ensuring the highest occupational safety . Sustainable value chain standards . Reducing operating costs for customers through . Operator safety and protection for energy-efficient products (ECO and zero- customers and users emissions products) . Maintaining quality across all processes . Legal compliance and anti-corruption . Integration of management systems (quality, energy, environment)
Building a stronger position to meet growing challenges
Current sustainability report: www.wackerneusongroup.com/en/sustainability/downloads/ 25 Overview
Company profile
Our future Our business model
26 Megatrends are increasing global demand for our products
27 Trends driving Group business
Opportunities
Construction industry Agriculture and other sectors
. Modernization of infrastructure in mature and emerging . Increasing global demand for food and fodder due to markets population growth
. Products and services adapted to local customer requirements . Shift towards larger holdings (especially in Europe) with greater demand for mechanization (multifunctional equipment) . Expansion of broadband networks (super-fast Internet) . Increasing industrialization/automation of agricultural . Reconstruction (renovation, modernization) operations, including in emerging economies . Increase in residential and non-residential construction in . More efficient transportation of material in the industrial sector cities (urbanization) . Greater emphasis on environmental protection (stricter . Greater emphasis on environmental protection (stricter emissions legislation) emissions legislation) . Digitalization of products and services . Digitalization of products and services
28 Mission, Vision, Strategy
Costumer Centricity: Focus – Acceleration – Excellence
Mission – What do we stand for Strategy – What drives us forward Everything we do, think and learn is inspired by the success of our customers in the construction and agricultural sectors. We stay close to our customers around the world so we are always getting quicker and better at understanding their regional needs, challenges and worksite processes. As a specialist for light and compact equipment, we proactively offer innovative solutions, products and services that strengthen our customers’ business success in the long term.
Vision – Where we are headed We are the most innovative trendsetter in the industry, growing twice as fast as the market. We are the partner of choice for our customers. Our core strengths lie in closer customer ties, customer-centric product development, digitalization and product/service networking. We maintain a corporate culture that values and respects individual effort and we channel our efforts into gaining a leading position in all areas.
29 Forecast for 2018
Revenue and EBIT margins 2017–2018e
(Revenue in € m) 1.800 +8% to +11% 1,650–1,700 1.600 1,534
1.400
1.200
1.000
800 EBIT margin 600 EBIT margin 9.0 – 10.0 % 8.6% 400
200
0 2017 2018e
Investments of ~ € 60 m
30 Great reasons for choosing Wacker Neuson Group
Strong financial position independence Long-term growth strategies family culture Technology leader Highest product and service quality Flexible production sophisticated logistics Balanced revenue structure Cross-industry focus Global footprint customer proximity Experienced, highly motivated employees Sustainable business practices Unparalleled extensive portfolio Strong profit margins
31 Financial calendar and IR contact
Financial Calendar
March 20, 2018 Publication of annual report 2017
May 8, 2018 Publication of Q1 report 2018
May 30, 2018 AGM, Munich
August 7, 2018 Publication half-year report 2018
November 8, 2018 Publication of Q3 report 2018
IR contact
Investor Relations Department Preussenstrasse 41, 80809 Munich, Germany Phone: +49-89-35402-173, Fax: +49-89-35402-298 [email protected]
32 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 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.
33 Appendix
34 Concrete technology
35 Concrete technology
36 Trowels
37 Compaction
38 Cutting & Breaking
39 Heaters
40 Pumps
41 Power and light
42 Compact machines
43 Attachments
44