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Page 1: Wacker Neuson Group Working side by side with our …...“The 2019 Market Report shows encouraging growth across Europe. A key driver being the increasing pressure on the industry

Wacker Neuson Group – Working side by side with our customers

Page 2: Wacker Neuson Group Working side by side with our …...“The 2019 Market Report shows encouraging growth across Europe. A key driver being the increasing pressure on the industry

Why Wacker Neuson? 01

What makes us strong? 02

Where are we heading? 03

Appendix: Financial results 04

2

Page 3: Wacker Neuson Group Working side by side with our …...“The 2019 Market Report shows encouraging growth across Europe. A key driver being the increasing pressure on the industry

Why Wacker Neuson?

Page 4: Wacker Neuson Group Working side by side with our …...“The 2019 Market Report shows encouraging growth across Europe. A key driver being the increasing pressure on the industry

Maximum productivity & machine uptime

Comfortable & intuitive machine handling

Operator health & safety

Service, Partnership, Reliability

Attractive total cost of ownership

We align growth with our customers’ needs

4

Page 5: Wacker Neuson Group Working side by side with our …...“The 2019 Market Report shows encouraging growth across Europe. A key driver being the increasing pressure on the industry

We drive innovation to improve our customers’ processes

5

Dual View Dumper Zero emissionVertical Digging System Onsite Box – mobile shop

Connected products Remote-control steeringHand-arm vibrations Modular design

Wireless handling with no

emissions

Cockpit rotatable by 180°

Shorter process

times due to exact vertical digging

On-site support for

our customers

Flexibility with one battery fitting 7

products

Give your machines a

voice!

Operating equipmentwithout any

time restrictions

Maximizing operator comfort

Page 6: Wacker Neuson Group Working side by side with our …...“The 2019 Market Report shows encouraging growth across Europe. A key driver being the increasing pressure on the industry

We see our customers as our partners

6

Strong customer involvement in R&D

Sophisticated value engineering

Voice

of Customer

Technical

benchmarking

Early involvement

of all functions

Front Loading

With our accelerated

customer-oriented

product development

process, we provide our

customers with the right

features and the best

quality at the best price.

Teamwork at every step of the value chain

Research & Development

Page 7: Wacker Neuson Group Working side by side with our …...“The 2019 Market Report shows encouraging growth across Europe. A key driver being the increasing pressure on the industry

We are a one-stop provider with an unrivaled offering

7

Light Equipment (LE) Compact Equipment (CE)

Different product groups

same customers

25%of Group sales1

55%of Group sales1

AcademyUsed Machines2Repair2 &

Maintenance2Rental Service2 Genuine PartsConcrete

solutions

Financial Solutions E-Store2 Telematics

Services

20%of Group sales1

1 FY 2019. 2 In selected countries.

Page 8: Wacker Neuson Group Working side by side with our …...“The 2019 Market Report shows encouraging growth across Europe. A key driver being the increasing pressure on the industry

Competitors include

Ammann

Bomag

Husqvarna

Weber MT

Customers trust in our longstanding expertise in LE

8

Demolition

Light Equipment (LE)

25%of Group sales1

CompactionConcrete technology

Power & Lighting Pumps

Heaters

€ 2,000Average price of an LE product1

In 1930, Wacker invented

the electric rammer. The

term "wacker packer" is still

used on construction sites.

1 FY 2019.

Page 9: Wacker Neuson Group Working side by side with our …...“The 2019 Market Report shows encouraging growth across Europe. A key driver being the increasing pressure on the industry

Customers opt for the advantages of compact equipment

9

Telehandlers Wheel loaders

Compact Equipment (CE)

55%of Group sales2

Dumpers Backhoe loaders Skid steers / Compact track loaders

Excavators

€ 36,000Average price of a CE product2

Urbanization,

limited space and

mechanization are

driving demand for

compact equipment

in construction and

agriculture.

Competitors include

Kubota

Takeuchi

Yanmar

Manitou

JCB

Bobcat (Doosan)

1 own estimates, based on underlying data from CECE and Off-Highway Research 2 FY 2019.

EUR 18 Bnexpected value of global compact

construction equipment market

accessible to Wacker Neuson in 20251

Page 10: Wacker Neuson Group Working side by side with our …...“The 2019 Market Report shows encouraging growth across Europe. A key driver being the increasing pressure on the industry

Market leaders trust in the WN Group’s high quality products

10

OEM (APAC)OEM (global2)Sales (EMENA & CIS1)

Wacker Neuson produces

for Caterpillar2

Kramer3 distributes

via JD’s dealer network

Wacker Neuson produces

for John Deere

1 Commonwealth of Independent States. 2 Not in Japan, phasing out. 3 Kramer “green line” only.

Page 11: Wacker Neuson Group Working side by side with our …...“The 2019 Market Report shows encouraging growth across Europe. A key driver being the increasing pressure on the industry

Service is key to our customers’ success

Academy

Used Machines2Repair2 &

Maintenance2

Financial Solutions

Rental Service2

E-Store2

Genuine Parts

Telematics

Concrete Solutions

Comprehensive services Collaborative relationship

We are there for our customers, listening,

sharing our expertise and working closely

with them to find the best solutions.

150 sales

and service

locations

Service, Partnership,Reliability

Customer proximity

20%of Group sales1

>550service technicians

in close proximity

to our customers

111 FY 2019. 2 In selected countries.

Page 12: Wacker Neuson Group Working side by side with our …...“The 2019 Market Report shows encouraging growth across Europe. A key driver being the increasing pressure on the industry

12

What makes us strong?

Page 13: Wacker Neuson Group Working side by side with our …...“The 2019 Market Report shows encouraging growth across Europe. A key driver being the increasing pressure on the industry

We serve our markets with three strong brands

13

Construction, gardening/landscaping, maintenance/repairs, etc. Agriculture, horse breeders, tree nurseries, etc.

Page 14: Wacker Neuson Group Working side by side with our …...“The 2019 Market Report shows encouraging growth across Europe. A key driver being the increasing pressure on the industry

Our diversified sales organization responds to regional needs

Direct sales &

rent to sell1 DealersKey accounts

& rental firmseCommerce1

Country-specific sales with long-standing customer relationships

1 In selected countries.14

Page 15: Wacker Neuson Group Working side by side with our …...“The 2019 Market Report shows encouraging growth across Europe. A key driver being the increasing pressure on the industry

We drive electrification in our industry

EZ17e

DW15e

DT10e

AP1840e AP2560e

AS60e

AP1850e

ACBe

Full portfolio of zero emission products

ChangeWe are well prepared for the

shift to zero emission

construction sites

“If we learn early enough that

ambitious climate demands will

be imposed, we can drive

innovation forward by

demanding zero-emission

solutions from machinery

manufacturers, equipment

suppliers and contractors.”1

1 Ole Henrik Ystehede, director of EBA (Contractors Association - Building and Construction) for Oslo/Akershus/Østfold.

Through a smart and

innovative procurement

strategy, the City of Oslo

reduces climate gas

emissions at

construction sites.

15

Page 16: Wacker Neuson Group Working side by side with our …...“The 2019 Market Report shows encouraging growth across Europe. A key driver being the increasing pressure on the industry

Digitalization creates new opportunities for our business

Connected products –

always a step ahead

Pinpointing location –

connected jobsites

Give your machines a voice

Increasing runtime –

predictive maintenance

Transparency –

Real-time data analysis

Increasing efficiency –

smart products

Optimizing utilization

16

Page 17: Wacker Neuson Group Working side by side with our …...“The 2019 Market Report shows encouraging growth across Europe. A key driver being the increasing pressure on the industry

Our diversified business dampens cyclical fluctuations

17

Focus on maintenance & repair

of infrastructure large infrastructure

projects have no major impact on our

business

Rental equipment as buffering alternative to purchasing new

machines maximum flexibility for customers

Only small investment volumes

required

Broad customer base, diversified target industries

Different cycles in agriculture & construction

Resilience to cyclical

fluctuations

1 Source: Off-Highway Research, August 2019. 2 FY 2019

16%of Group sales

from agriculture2

>10different target

industries

0

400

800

1,200

1,600

2,000

0

200,000

400,000

600,000

800,000

1,000,000

Global equipment sales (units) Revenue WN Group (€ million)

-33%

1

+39%

[units] [€ m]

Page 18: Wacker Neuson Group Working side by side with our …...“The 2019 Market Report shows encouraging growth across Europe. A key driver being the increasing pressure on the industry

Where are we heading?

Page 19: Wacker Neuson Group Working side by side with our …...“The 2019 Market Report shows encouraging growth across Europe. A key driver being the increasing pressure on the industry

We strive for long-term stable growth

Revenue development

758

992 1,0921,160

1,2841,375 1,361

1,5341,710

1,901

CAGR +10.8%[€ m]

19

>2 Bnrevenue

Strategy

2022targets

2 timesmarket growth

Page 20: Wacker Neuson Group Working side by side with our …...“The 2019 Market Report shows encouraging growth across Europe. A key driver being the increasing pressure on the industry

+15%

Internationalization – plenty of room to grow

20

357.5

401.3

459.5

2017 2018 2019

1,129.8 1,248.9

1,379.0

2017 2018 2019

46.6

59.862.6

2017 2018 2019

+10%

+5%

73%of Group sales1

3%of Group sales124%

of Group sales1

AMERICAS

EUROPE

APAC

[€ m]

[€ m]

[€ m]

1 FY 2019.

Page 21: Wacker Neuson Group Working side by side with our …...“The 2019 Market Report shows encouraging growth across Europe. A key driver being the increasing pressure on the industry

Financing programs set up to enable future growth

Extension of anchor dealer network for LE

& CE

Skid steers as door opener for compact equipment

Large potential for

further market share gains

Americas – Anchor dealer strategy to accelerate our growth

21

Light Equipment

Compact Equipment

Services

1 Source: CECE, 2020. 2 John McClelland, ARA vice president, Nov. 2019.

Skid steer market North America1 (units)

60 yearsin the US light equipment market with

high market shares

“The equipment [...] rental industry is growing

and continues to expand faster than the

overall economy. […] In the U.S.,

construction equipment rental revenue is

expected to grow another 2.3 percent in

2020, 3.0 percent in 2021, 3.7 percent in

2022 and 3.1 percent in 2023 to reach

$43.9 billion.”2

2019

2019

109,000

Page 22: Wacker Neuson Group Working side by side with our …...“The 2019 Market Report shows encouraging growth across Europe. A key driver being the increasing pressure on the industry

Europe – We are striving to increase market shares

22

Light Equipment

Compact Equipment

Services

2019

Further strengthening of

our market position

Gaining significant market shares in UK &

France (i.a.)

Expansion in agriculture with Weidemann and

Kramer

Game changer

We have redefined

safety and accelerated our

customers’ processes with

our Dual View dumpers

“The 2019 Market Report shows

encouraging growth across

Europe. A key driver being the

increasing pressure on the

industry to improve their CSR

credentials, with the

sustainability benefits of

equipment rental being realised

across industries. […].”1

1 Michel Petitjean, Secretary-General of the ERA, ERA Market Report 2019.

Major market shares in DACH –

plenty of room for growth

in other regions

Page 23: Wacker Neuson Group Working side by side with our …...“The 2019 Market Report shows encouraging growth across Europe. A key driver being the increasing pressure on the industry

Europe – We are growing our business in the ag sector

23

All-wheel steering

Articulated steering

Our customers are mainly dairy and

cattle farmers who work in confined

spaces such as stables.

They require small, highly

maneuverable machines with a

minimal turning radius and

outstanding stability.

Development of revenues in the ag sector1

Revenue in MIO. €

1 FY 2019.

+21%growth in CE for the

agricultural sector1

16%of Group sales

from agriculture1

0

100

200

300

2015 2016 2017 2018 2019

+12.6% CAGR

Page 24: Wacker Neuson Group Working side by side with our …...“The 2019 Market Report shows encouraging growth across Europe. A key driver being the increasing pressure on the industry

Ramping up production at

plant in Pinghu, China

Partnership with John Deere will

help improve utilization rate in

new plant

Even small market shares would leverage

our sales significantly

APAC – We benefit from structural market changes in China

24

Light Equipment

Compact Equipment

Services

1 Source: Off-Highway Research, Feb. 2020.

0%

20%

40%

60%

80%

100%

Crawler Excavators Wheeled LoadersMini Excavators Mobile CranesCompactors & Pavers Graders & Dozers

Changing market structure in China – compact equipment on the rise1

Mini excavator market China 2019 (units)1

2019

Cooperation with John Deere for the sale of

“Deere”-brand mini and compact excavators

initially in China, Australia and selected Southeast

Asian countries.

85,000

2019

Page 25: Wacker Neuson Group Working side by side with our …...“The 2019 Market Report shows encouraging growth across Europe. A key driver being the increasing pressure on the industry

1 March 2020

APAC – In the region for the region

>20 yearsin the Chinese

light equipment market

Our R&D team in

China comprises

20engineers

working on

solutions tailored

to the region1

Excavator: EZ17.Key Chinese players Key International players

Sany

XuGong

(XCMG)

LiuGong

Caterpillar

Volvo

Hitachi

Kobelco

Kubota

Doosan

Hyundai

China – divided competitive landscape

Production and R&D center in Pinghu, China

25

Page 26: Wacker Neuson Group Working side by side with our …...“The 2019 Market Report shows encouraging growth across Europe. A key driver being the increasing pressure on the industry

We benefit from megatrends

- Maintenance of

infrastructure

- Limited space

- Clean air

regulations

- Noise pollution

- Growing

middle class

- Food

- Mechanization

- Infrastructure

- Housing

- Energy efficiency

- Waste

management

- Process

optimization

- Telematics

- Smart products

- Building Infor-

mation Modeling

(BIM)

26

Page 27: Wacker Neuson Group Working side by side with our …...“The 2019 Market Report shows encouraging growth across Europe. A key driver being the increasing pressure on the industry

Solid Balance Sheet Structure

271 As at December 31, 2019.

56%Equity ratio1

1.7Net financial debt/

EBITDA1

Excellent basis

for further profitable growth

Page 28: Wacker Neuson Group Working side by side with our …...“The 2019 Market Report shows encouraging growth across Europe. A key driver being the increasing pressure on the industry

Clear-cut strategy and experienced management team

28

Martin Lehner

CEO

Responsible for strategy, procurement,

production, technology, quality, investor

relations, corporate communication,

sustainability, compliance, HR and legal

matters.

Alexander Greschner

CSO

Responsible for sales, service and

marketing.

Wilfried Trepels

CFO

Responsible for finance, controlling, audit,

IT & organization, Supply Chain and real

estate.

Page 29: Wacker Neuson Group Working side by side with our …...“The 2019 Market Report shows encouraging growth across Europe. A key driver being the increasing pressure on the industry

Customer-focused strategy

- Streamlining

production sites

29

- Focus on core

areas of expertise

- China as a

growth market

- Development of

digital solutions for

our customers

- Investment in

growth fund for

Industry 4.0

startups

- Expansion of zero

emission product

portfolio

- Employee

development

programs

- Better integration

of sales and

production

- Streamlining the

Group’s internal

supply chain

CUSTOMER CENTRICITY

Page 30: Wacker Neuson Group Working side by side with our …...“The 2019 Market Report shows encouraging growth across Europe. A key driver being the increasing pressure on the industry

Wrap up

30

Resilience to cyclicality

Focus on maintenance & repair of

infrastructure

Broad customer base, diversified target

industries

Solid base

Growth potentialMegatrends as

business driversGlobal trend towards compact equipment

Growth opportunitiesin Europe, North

America and APAC

Sales channelsDirect sales & rent

to sellDealers

Key accounts & rental firms

eCommerce

Products

Innovation- and market-leading position in light and compact equipment

Future-proof product portfolio

driven by innovation

One-stop shopPioneers in zero

emissionsolutions

Focus on theright products forthe right markets

High equity ratio, family as anchor

shareholders

Page 31: Wacker Neuson Group Working side by side with our …...“The 2019 Market Report shows encouraging growth across Europe. A key driver being the increasing pressure on the industry

31

Appendix – Financial results

Page 32: Wacker Neuson Group Working side by side with our …...“The 2019 Market Report shows encouraging growth across Europe. A key driver being the increasing pressure on the industry

Key messages H1/2020

32

Covid-19

impact most severe

in April & May;

growing demand for

services

Free cash flow

positive due to

inventory reduction

CEP1 in progress:

first positive effects in

procurement, production

and sales

✓ ✓

Profitability impacted

by lower volumes and

impairment of

US goodwill

1 Cost reduction and efficiency enhancement program.

Revenue

€ 797m

EBIT margin

6.3%

FCF

€ 93m

(PY: 9.0%)

H1/20

(-16% yoy) (PY: € -185 m)

Revenue

€ 386 m

EBIT margin

5.6%

FCF

€ 89m

(PY: 10.7%)

Q2/20

(-25% yoy) (PY: € -42 m)

Page 33: Wacker Neuson Group Working side by side with our …...“The 2019 Market Report shows encouraging growth across Europe. A key driver being the increasing pressure on the industry

455416

469435

517468 480

411386

12.3%

10.1%8.9%

7.1%

10.7%

8.8%

5.4%7.0%

5.6%

0%

5%

10%

15%

20%

0

100

200

300

400

500

Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20

Revenue and earnings

33

-25%

Q2/20: Covid-19 pandemic leads to drop in revenue

Income statement (excerpt)

H1/20: Comments

Revenue -16.4% yoy (adj. for FX effects: -16.5%)

▪ Sales decline due to Covid-19, most severe impact in Americas

▪ DACH region with stable performance, services segment above prior year

▪ Slight growth in ag business

Gross profit -17.6% yoy (gross profit margin -0.4 PP)

▪ Lower volumes burden gross profit: measures adopted early to soften

impact of Covid-19: cut in production programs, company holidays brought

forward, various models of short-time work

▪ Favorable product mix thanks to strong services segment

EBIT -41.5% yoy (EBIT margin: -2.7 PP)

▪ Strict cost control: Operating costs 11.0% below prior year; savings

especially in sales and administrative expenses

▪ EBIT before impairment on US goodwill (€ -9.5 m) and restructuring costs

from CEP (€ -2.1 m) at € 62.0 m (≙ margin of 7.8%)

Earnings per share -59.0% yoy

▪ Financial result clearly negative: FX effects (€ -7.8 m) primarily attributable

to valuation effects related to a sharp decline in the value of several

currencies; interest result on PY level (€ -6.0 m)

▪ Tax rate at 38.0% (H1/19: 31.8%): Aforementioned negative FX effects and

impairment loss are not tax deductible; write-offs or non-capitalization

of deferred tax assets

Revenue

[€ m]

EBIT

margin

€ m Q2/20 Q2/19 H1/20 H1/19

Revenue 385.9 517.2 796.7 952.6

Gross profit 95.8 137.1 204.9 248.8

as a % of revenue 24.8 26.5 25.7 26.1

Operating costs1 -67.8 -86.1 -150.4 -169.0

as a % of revenue -17.6 -16.6 -18.9 -17.7

EBIT 21.5 55.2 50.4 86.2

as a % of revenue 5.6 10.7 6.3 9.0

Financial result -1.6 -5.3 -13.8 -6.4

Taxes on income -7.6 -16.3 -13.9 -25.4

Profit for the period 12.3 33.6 22.7 54.4

Earnings per share (€) 0.18 0.48 0.32 0.78

1 Excl. other income/expenses.

Page 34: Wacker Neuson Group Working side by side with our …...“The 2019 Market Report shows encouraging growth across Europe. A key driver being the increasing pressure on the industry

H1/20: Growth in services segment

796.7

21.9

143.4

631.4

Total H1/20

Asia-Pacific

Americas

Europe

Business development by region and business segment

34

H1/20: Divided picture in Europe, sharp decline in Americas

Revenue Europe -8.8% yoy (adj. for FX effects: -8.9%)

▪ DACH region stable; in contrast, significant revenue losses in various

regions including France, UK, Poland, Spain, Italy, Scandinavia

▪ Demand for agricultural compact equipment (revenue +1% yoy) had a

balancing effect on development of sales in Europe

▪ Innovation-driven sales: revenue with dual view dumpers grew by >60%

▪ Significant decline in business with rental chains

Revenue Americas -38.0% yoy (adj. for FX effects: -38.6%)

▪ Strong decline in investment activity among dealers due to current

uncertainty

▪ Key accounts (incl. rental chains) cancel postponed orders

Revenue Asia-Pacific -24.2% yoy (adj. for FX effects: -22.1%)

▪ Chinese production facility and Chinese dealer organization brought to a

temporary standstill in Q1 due to the rapid spread of the Covid-19 virus

▪ Situation eased leading to a gradual ramp-up in March, production

without major interruptions from April onwards

▪ Q2 business volume above prior year in China, Australia negative

throughout Q1 & Q2

79%

18%

3%

100%

-9%

-38%

-24%

-16%

Share yoy

81.3

-21.2

-2.8

50.4

EBIT1

H1/20: Comments

Revenue [€ m]

803.5

187.4

439.9

176.2

Total H1/20

Services

Compact equipment

Light equipment 22%

55%

23%

100%

-29%

-18%

+6%

-17%

Share yoy

1 EBIT for regions before consolidation.2 Revenue by business segment before cash discounts.

Revenue [€ m]2

Page 35: Wacker Neuson Group Working side by side with our …...“The 2019 Market Report shows encouraging growth across Europe. A key driver being the increasing pressure on the industry

Decrease in inventory despite drop in sales

35

Inventory

Trade payables

Trade receivables

▪ Reduction of inventory levels despite decreased sales volume; marked

cut-back in production programs in response to the Covid-19 pandemic;

Target inventory level of € 500 m (end of FY) well in reach

▪ Trade receivables decreased with lower sales volume; high levels in

previous year due to strong revenue growth especially in H1

▪ Trade payables decline alongside decreased production volumes

→ Reduction of net working capital continues (see next slide)

1 Days inventory outstanding = (inventory/(cost of sales*4))*365 days; 2 Days sales outstanding =

(receivables/(revenue*4))*365 days; 3 Days payables outstanding = (payables/(cost of sales*4))*365 days.

Comments

Trade payables

[€ m]

Inventory

[€ m]

462500

553

633 645 663603 623

544

130151 144

179155

173147

188171

0

100

200

300

400

0

100

200

300

400

500

600

700

Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20

DIO1

[days]

320 304 303

371413 400

359 345320

64 6759

78 73 7868

77 76

0

50

100

150

200

0

100

200

300

400

Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20

163 167

213 208 199

164150

189

122

46 50 56 5948 43 37

57

38

0

50

100

150

200

0

50

100

150

200

250

Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20

Trade receivables

[€ m]

DPO3

[days]

DSO2

[days]

Page 36: Wacker Neuson Group Working side by side with our …...“The 2019 Market Report shows encouraging growth across Europe. A key driver being the increasing pressure on the industry

57

-3 -9

-142

-42 -16

84

4

89

-160

-120

-80

-40

0

40

80

Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20

Strong cash generation in Q2

36

Net working capital

Free cash flow

Cash flow from operating activities

▪ Reduction of inventory continues (€ -58.2 m relative to end of FY 19)

and fuels operating cash flow

▪ Restrictive CAPEX leads to cash flow from investment activities of

€ -31.9 m (H1/19: € -41.5 m)

▪ A change in miscellaneous liabilities (€ +22.9 m), primarily attributable

to a rise in VAT liabilities and deferred social security contributions had

a temporary positive impact

▪ Free cash flow of € 92.9 m (H1/19: € -184.5 m) leads to reduced net

debt (see next slide)

610 10

-115

-28

2

120

22

102

-150

-100

-50

0

50

100

150

Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20

Comments

Free cash flow

[€ m]

Cash flow from operating activities

[€ m]Net working capital

[€ m]

620 638 644

797858

899812 779 743

34%38%

34%

46%41%

48%42%

47% 48%

0%

20%

40%

60%

80%

100%

0

200

400

600

800

Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20

Net working capital

[as a % of revenue]1

1 Net working capital/annualized revenue for the quarter.

Page 37: Wacker Neuson Group Working side by side with our …...“The 2019 Market Report shows encouraging growth across Europe. A key driver being the increasing pressure on the industry

1,170 1,200 1,221 1,242 1,188 1,217 1,225 1,240 1,242

65% 65% 64%58%

52% 54% 56% 54% 55%

0%

20%

40%

60%

80%

100%

0

200

400

600

800

1,000

1,200

1,400

Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20

188 193 205

358

484513

439 446

363

16% 16% 17%

29%

41% 42%36% 36%

29%

0%

20%

40%

60%

80%

0

100

200

300

400

500

Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20

Gearing well below prior year, liquidity bolstered

37

▪ Strong decrease in net financial debt since its peak level at end of

Q3/19, further reduction through targeted decrease in net working

capital planned

▪ Ratio of net financial debt to EBITDA reduced, but still above plan

▪ Liquidity bolstered by strong free cash flow and by drawing on

short-term credit lines

▪ AGM: Suspension of dividend for fiscal 2019

▪ Cash at end of Q2/20: € 163.2 m (end of Q2/19: € 50.9 m)

0.60.8

0.7

1.61.5

1.91.7

2.0

1.6

0.0

0.5

1.0

1.5

2.0

Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20

Net financial debt

[€ m]

Equity

[€ m]

Net financial debt and gearing1

Equity and equity ratio

Net financial debt/EBITDA2

1 Net financial debt/equity. 2 Net financial debt/annualized EBITDA for the quarter.

Gearing1

Equity ratio

Net financial debt/

EBITDA2 [x]

Comments

Page 38: Wacker Neuson Group Working side by side with our …...“The 2019 Market Report shows encouraging growth across Europe. A key driver being the increasing pressure on the industry

Cost reduction and efficiency enhancement program

38

Key provisions

Reduction on material costs

Underabsorption

Purchasing costs

Restructuring costs (production affiliate USA)

Price realisation

Restructuring sales organization

Shipping costs

Restructuring costs (sales affiliate USA)

Reduction of inventory levels

Cost reduction and efficiency enhancement program covers all Group divisions.

4 focus topics each in production & purchasing and sales & administration

Production & Purchasing Sales & Administration

Page 39: Wacker Neuson Group Working side by side with our …...“The 2019 Market Report shows encouraging growth across Europe. A key driver being the increasing pressure on the industry

25

50

75

100

125

Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20

Wacker Neuson SDAX DAX Peer group

1.30

0.940.81

1.25

2.06

1.26

0.50 0.50 0.500.60

1.10

0.00

38%53% 62%

48% 53%

0%

-200%

-150%

-100%

-50%

0%

50%

-0.20

0.30

0.80

1.30

1.80

2.30

2.80

2014 2015 2016 2017 2018 2019

EPS in € Dividend per share in € Payout ratio

Share development

39

The share in 20201

Key figures per share

Covid-19: Suspension of dividend payment

1 As at July 31, 2020 2 Peer group: Ashtead, Atlas Copco, Bauer, Caterpillar, Deutz, DoosanBobcat, Haulotte,

Husqvarna, John Deere, Komatsu, Manitou, Palfinger, Terex, United Rentals, Volvo.

Family 58%

Free float 42%

(Total shares: 70,140,000)

Coverage1 Shareholder structure

in € H1/20 H1/19

Earnings per share 0.32 0.78

Book value per share 17.70 16.93

Share price at end of period 13.44 22.12

Market capitalization (€ m) 942.7 1,551.5

0.50

0.60

Special dividend in €

% -12%

2

Bank TP (€) Recom. Date

Hauck & Aufhäuser 21.00 Buy July 16, 2020

Warburg 20.00 Buy July 16, 2020

Berenberg 18.00 Buy July 20, 2020

Metzler 16.50 Buy June 30, 2020

Bankhaus Lampe 16.00 Buy July 31, 2020

Jefferies 15.50 Buy May 15, 2020

Kepler Cheuvreux 11.00 Reduce July 20, 2020

Commerzbank 10.00 Hold July 16, 2020

Page 40: Wacker Neuson Group Working side by side with our …...“The 2019 Market Report shows encouraging growth across Europe. A key driver being the increasing pressure on the industry

Outlook for 2020

40

Business index for agriculture

Business index for construction Guidance for fiscal 2020

▪ Continued high uncertainty regarding the further impact of the

Covid-19 pandemic on global economy

▪ Business climate in the construction sector continued to bounce

back in July, but at moderate pace

▪ Mood in the agricultural sector almost at pre-corona levels, but

still negative according to the CEMA business index

▪ April 21, 2020: Original guidance withdrawn

Revenue between € 1,700 and € 1,900 m

EBIT margin between 6.5 and 8.5%

Investments of € 80 m to € 100 m

Net working capital as a % of revenue to be stagnant or to

improve slightly relative to the end of 2019

▪ Current guidance for FY 2020

Reliable, precise forecast still not feasible in view of the

unpredictable effects of corona pandemic

Revenue and EBIT margin for 2020 are expected to be

considerably below previous year’s levels

Investments of around € 80 million planned

Net working capital in absolute terms expected to be

considerably below previous year

6,5 – 8,5%

Source: CECE, July 2020.

Source: CEMA, July 2020.

2011 2012 2013 2014 2015 2016 2018 2019 20202017

Page 41: Wacker Neuson Group Working side by side with our …...“The 2019 Market Report shows encouraging growth across Europe. A key driver being the increasing pressure on the industry

Financial calendar and contact

41

Disclaimer

This report contains forward-looking statements which are based on current estimates and assumptions made by corporate management at Wacker Neuson SE. Forward-looking statements are

characterized by the use of words such as expect, intend, plan, predict, assume, believe, estimate, anticipate and similar formulations. Such statements are not to be understood as in any way

guaranteeing that those expectations will turn out to be accurate. Future performance and the results actually achieved by Wacker Neuson SE and its affiliated companies depend on a number of risks

and uncertainties and may therefore differ materially from forward-looking statements. Many of these factors are outside the Company's control and cannot be accurately estimated in advance, such as

the future economic environment and the actions of competitors and market players. The Company neither plans nor undertakes to update any forward-looking statements.

All rights reserved. Valid August 2020. Wacker Neuson SE accepts no liability for the accuracy and completeness of information provided in this brochure. Reprint only with the written approval of

Wacker Neuson SE in Munich, Germany. The German version shall govern in all instances.

Contact

Wacker Neuson SE

Contact IR: +49 - (0)89 - 354 02 - 427

[email protected]

www.wackerneusongroup.com

August 5, 2020 Publication of half-year report 2020, investors & analysts call

August 18, 2020 Bankhaus Lampe German Conference, Baden-Baden (eConference)

September 2, 2020 Commerzbank Corporate Conference, Frankfurt (eConference)

September 21, 2020 Berenberg/Goldman Sachs German Corporate Conference 2020 (eConference)

November 5, 2020 Publication of nine-month report 2020, investors & analysts call