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Page 1: Wacker Neuson Group Working side by side with our …...Mini Excavators Mobile Cranes Compactors & Pavers Graders & Dozers Changing market structurein China –compact equipment on

1

Wacker Neuson Group – Working side by side with our customers

Page 2: Wacker Neuson Group Working side by side with our …...Mini Excavators Mobile Cranes Compactors & Pavers Graders & Dozers Changing market structurein China –compact equipment on

Why Wacker Neuson? 01

What makes us strong? 02

Where are we heading? 03

Appendix: Financial results H1/19 04

2

Page 3: Wacker Neuson Group Working side by side with our …...Mini Excavators Mobile Cranes Compactors & Pavers Graders & Dozers Changing market structurein China –compact equipment on

Why Wacker Neuson?

Page 4: Wacker Neuson Group Working side by side with our …...Mini Excavators Mobile Cranes Compactors & Pavers Graders & Dozers Changing market structurein China –compact equipment on

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 …...Mini Excavators Mobile Cranes Compactors & Pavers Graders & Dozers Changing market structurein China –compact equipment on

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 …...Mini Excavators Mobile Cranes Compactors & Pavers Graders & Dozers Changing market structurein China –compact equipment on

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 …...Mini Excavators Mobile Cranes Compactors & Pavers Graders & Dozers Changing market structurein China –compact equipment on

We are a one-stop provider with an unrivaled offering

7

Light Equipment (LE) Compact Equipment (CE)

Different product groups

same customers

27%of Group sales1

53%of Group sales1

AcademyUsed Machines2Repair2 &

Maintenance2Rental Service2 Genuine PartsConcrete

solutions

Financial Solutions E-Store2 Telematics

Services

20%of Group sales1

1 FY 2018. 2 In selected countries.

Page 8: Wacker Neuson Group Working side by side with our …...Mini Excavators Mobile Cranes Compactors & Pavers Graders & Dozers Changing market structurein China –compact equipment on

Competitors include

Ammann

Bomag

Husqvarna

Weber MT

Customers trust in our longstanding expertise in LE

8

Demolition

Light Equipment (LE)

27%of Group sales1

CompactionConcrete technology

Power & Lighting Pumps

Heaters

€ 1,800Average price of a LE product1

In 1930, Wacker invented

the electric rammer. The

term "wacker packer" is still

used on construction sites.

1 FY 2018.

Page 9: Wacker Neuson Group Working side by side with our …...Mini Excavators Mobile Cranes Compactors & Pavers Graders & Dozers Changing market structurein China –compact equipment on

Customers opt for the advantages of compact equipment

9

Telehandlers Wheel loaders

Compact Equipment (CE)

53%of Group sales2

Dumpers Backhoe loaders Skid steers / Compact track loaders

Excavators

€ 32,000Average 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 2018.

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 …...Mini Excavators Mobile Cranes Compactors & Pavers Graders & Dozers Changing market structurein China –compact equipment on

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

Wacker Neuson produces

for Würth

OEM (Europe)

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 …...Mini Excavators Mobile Cranes Compactors & Pavers Graders & Dozers Changing market structurein China –compact equipment on

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.

140 sales

and service

locations

Service, Partnership,

Reliability

Customer proximity

20%of Group sales1

>500service technicians

in close proximity

to our customers

111 FY 2018. 2 In selected countries.

Page 12: Wacker Neuson Group Working side by side with our …...Mini Excavators Mobile Cranes Compactors & Pavers Graders & Dozers Changing market structurein China –compact equipment on

12

What makes us strong?

Page 13: Wacker Neuson Group Working side by side with our …...Mini Excavators Mobile Cranes Compactors & Pavers Graders & Dozers Changing market structurein China –compact equipment on

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 …...Mini Excavators Mobile Cranes Compactors & Pavers Graders & Dozers Changing market structurein China –compact equipment on

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 …...Mini Excavators Mobile Cranes Compactors & Pavers Graders & Dozers Changing market structurein China –compact equipment on

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 …...Mini Excavators Mobile Cranes Compactors & Pavers Graders & Dozers Changing market structurein China –compact equipment on

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 …...Mini Excavators Mobile Cranes Compactors & Pavers Graders & Dozers Changing market structurein China –compact equipment on

Our diversified business balances out 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, April 2019. 2 FY 2018

15%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

1,200,000

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

-33%

1

+39%

[units] [€ m]

Page 18: Wacker Neuson Group Working side by side with our …...Mini Excavators Mobile Cranes Compactors & Pavers Graders & Dozers Changing market structurein China –compact equipment on

Where are we heading?

Page 19: Wacker Neuson Group Working side by side with our …...Mini Excavators Mobile Cranes Compactors & Pavers Graders & Dozers Changing market structurein China –compact equipment on

We are on a steady growth path

Revenue development

597758

9921,092 1,160

1,2841,375 1,361

1,5341,707

CAGR +12.4%[€ m]

19

>2 bnrevenue

Strategy

2022targets

2 timesmarket growth

Page 20: Wacker Neuson Group Working side by side with our …...Mini Excavators Mobile Cranes Compactors & Pavers Graders & Dozers Changing market structurein China –compact equipment on

+11%

Internationalization – plenty of room to grow

20

357.5

397.8

2017 2018

1,129.8

1,248.9

2017 2018

46.6

59.8

2017 2018

+11%

+28%

73%of Group sales1

4%of Group sales123%

of Group sales1

AMERICAS

EUROPE

APAC

[€ m]

[€ m]

[€ m]

1 FY 2018.

Page 21: Wacker Neuson Group Working side by side with our …...Mini Excavators Mobile Cranes Compactors & Pavers Graders & Dozers Changing market structurein China –compact equipment on

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, Off-Highway, 2018. 2 John McClelland, ARA vice president, May 2019.

81,00089,000 91,000

2016 2017 2020e

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., equipment and event rental

revenue is expected to grow another

4.2 percent in 2020, 4.3 percent in

2021 and 4.7 percent in 2022 to reach

$63.5 billion.”2

2018

Page 22: Wacker Neuson Group Working side by side with our …...Mini Excavators Mobile Cranes Compactors & Pavers Graders & Dozers Changing market structurein China –compact equipment on

Europe – We are striving to increase market shares

22

Light Equipment

Compact Equipment

Services

2018

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 market is maturing and

growing, which is encouraging.

Businesses across Europe

increasingly use rental as part of

their competitive toolkit as it

makes better use of capital,

minimizes environmental impact

and provides access to new

equipment and expertise […].”1

1 Michel Petitjean, Secretary-General of the ERA, ERA Market Report 2018.

Major market shares in DACH –

plenty of room for growth

in other regions

Page 23: Wacker Neuson Group Working side by side with our …...Mini Excavators Mobile Cranes Compactors & Pavers Graders & Dozers Changing market structurein China –compact equipment on

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 milk prices in Germany2

Price [cent / kg milk]

1 FY 2018. 2 Source: ife Institut für Ernährungswirtschaft, Kiel, March 2019.

+18%growth in CE for the

agricultural sector1

15%of Group sales

from agriculture1

Page 24: Wacker Neuson Group Working side by side with our …...Mini Excavators Mobile Cranes Compactors & Pavers Graders & Dozers Changing market structurein China –compact equipment on

Ramping up production at

recently opened plant in 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, April 2019.

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

52,100

65,00072,000

2018 2019e 2023e

Mini excavator market China 2018 – 2023e (units)1

2018

Cooperation with John Deere for the sale of

“Deere”-brand mini and compact excavators

initially in China, Australia and selected Southeast

Asian countries.

Page 25: Wacker Neuson Group Working side by side with our …...Mini Excavators Mobile Cranes Compactors & Pavers Graders & Dozers Changing market structurein China –compact equipment on

1 Source: Off-Highway Research, April 2019. 2 May 2019

APAC – In the region for the region

>20 yearsin the Chinese

light equipment market

Our R&D team in

China comprises

18engineers

working on

solutions tailored

to the region2

Excavator: EZ17.Key Chinese players Key International players

Sany

XuGong

(XCMG)

LiuGong

Caterpillar

Volvo

Hitachi

Kobelco

Kubota

Doosan

Hyundai

China – divided competitive landscape

Newly opened production and R&D center in China

25

Page 26: Wacker Neuson Group Working side by side with our …...Mini Excavators Mobile Cranes Compactors & Pavers Graders & Dozers Changing market structurein China –compact equipment on

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 …...Mini Excavators Mobile Cranes Compactors & Pavers Graders & Dozers Changing market structurein China –compact equipment on

Solid Balance Sheet Structure

271 As at September 30, 2019.

54%Equity ratio1

1.9Net financial debt/

EBITDA1

Excellent basis

for further profitable growth

Page 28: Wacker Neuson Group Working side by side with our …...Mini Excavators Mobile Cranes Compactors & Pavers Graders & Dozers Changing market structurein China –compact equipment on

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, audit, IT,

Supply Chain and real estate.

Page 29: Wacker Neuson Group Working side by side with our …...Mini Excavators Mobile Cranes Compactors & Pavers Graders & Dozers Changing market structurein China –compact equipment on

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 …...Mini Excavators Mobile Cranes Compactors & Pavers Graders & Dozers Changing market structurein China –compact equipment on

Share Development

30

The share in 20191

Key figures per share

Dividend payout

1 As at Nov. 5, 2019 2 Peer group: Ashtead, Atlas Copco, Bauer, Caterpillar, Cramo, Deutz, DoosanBobcat, Haulotte,

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

Family 58%

Free float 42%

in € 9M/19 9M/18

Adj. earnings per share 1.14 1.09

Book value per share 17.35 17.11

Share price at end of period 16.00 22.08

Market capitalization (€ m) 1,122.2 1,548.7 (Total shares: 70,140,000)

Coverage1 Shareholder structure

Bank TP (€) Recom. Date

Metzler 27.00 Buy July 04, 2019

Commerzbank 23.00 Buy Oct 16, 2019

Warburg 22.90 Buy Oct 17, 2019

Hauck & Aufhäuser 22.50 Buy Oct 17, 2019

Bankhaus Lampe 18.00 Buy Oct 31, 2019

MainFirst 17.00 Neutral Oct 15, 2019

Kepler Cheuvreux 12.00 Reduce Oct 16, 2019

1.30

0.940.81

1.25

2.06

0.50 0.50 0.500.60

38%53%

62%48% 53%

-100%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

0.00

0.50

1.00

1.50

2.00

2.50

2014 2015 2016 2017 2018

EPS in € Dividend per share in € Payout ratio

1.10 Special

dividend

0.50

0.60

%

2

75

100

125

150

175

Wacker Neuson SDAX DAX Peer group

-1%

Page 31: Wacker Neuson Group Working side by side with our …...Mini Excavators Mobile Cranes Compactors & Pavers Graders & Dozers Changing market structurein China –compact equipment on

Wrap up

31

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 32: Wacker Neuson Group Working side by side with our …...Mini Excavators Mobile Cranes Compactors & Pavers Graders & Dozers Changing market structurein China –compact equipment on

32

Appendix – Financial results Q3/19

Page 33: Wacker Neuson Group Working side by side with our …...Mini Excavators Mobile Cranes Compactors & Pavers Graders & Dozers Changing market structurein China –compact equipment on

Key figures

33

NWC ratio1: 48.1%

(+9.8 PP yoy)

DIO2: 173 days

(+22 days yoy)

Equity ratio: 54.0%

(-11.3 PP yoy)

September 30, 2019

Revenue yoy

+12%

EBIT yoy

-4%

Op. CF

€ 2 m

FCF

€ -17 m

(margin: 8.6%)

Q3/19

(€ 467 m)

(Q3/18: € -3 m)(Q3/18: € 10 m)

Revenue yoy

+14%

EBIT yoy

+4%

Op. CF

€ -143 m

FCF

€ -203 m

(margin: 8.8%)

9M/19

(€ 1,418 m)

(9M/18: € 9 m)(9M/18: € -26 m)

1 Net working capital/annualized revenue for the quarter.2 Days inventory outstanding: (inventory/annualized cost of sales for the quarter)*365.

Page 34: Wacker Neuson Group Working side by side with our …...Mini Excavators Mobile Cranes Compactors & Pavers Graders & Dozers Changing market structurein China –compact equipment on

379 392 371

455416

466435

516467

10.6%

7.8%6.2%

12.3%

10.1%8.4%

6.9%

10.5%8.6%

0%

5%

10%

15%

20%

25%

0

100

200

300

400

500

600

Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19

Revenue and earnings

34

+12%

Q3/19: Revenue remains on growth path

Income statement (condensed)

Q3/19: Comments

Revenue +12.4% yoy (adj. for FX effects: +11.1%)

▪ Strong growth in all reporting regions

▪ Sustained above-average growth for compact equipment targeted at the

agricultural sector (+23% yoy)

Gross profit +3.5% yoy (gross profit margin -2.2 PP)

▪ Cutbacks in production programs resulted in overcapacity, which

impacted productivity at production plants

▪ Increase in profitability in the US could not be realized within the

planned timeline

▪ Unfavorable product and customer mix for new equipment sales

EBIT -3.8% yoy (EBIT margin: -1.5 PP)

▪ Operating costs increased below average; their share of revenue

decreased by 0.7 PP yoy

▪ Decrease in gross profit margin could not be compensated for

Earnings per share -5.1% yoy

▪ Financial result € 1.6 m down on prior year: Attributable to a rise in

interest expenses caused by an increase in gearing and the initial

application of IFRS 16

▪ Tax rate decreased slightly yoy to 28.6% (Q3/18: 29.3%)

€ m Q3/19 Q3/18 9M/19 9M/18

Revenue 467.2 415.8 1,417.9 1,240.9

Gross profit 117.9 113.9 364.8 339.0

as a % of revenue 25.2% 27.4% 25.7% 27.3%

SG&A incl. other income/expenses -77.7 -72.1 -240.1 -218.6

as a % of revenue -16.6% -17.3% -16.9% -17.6%

EBIT 40.2 41.8 124.7 120.4

as a % of revenue 8.6% 10.1% 8.8% 9.7%

Financial result -4.2 -2.6 -8.9 -7.9

Taxes on income -10.3 -11.5 -35.7 -45.3

Profit for the period1 25.7 27.7 80.1 122.0

EPS (in €) 0.37 0.39 1.14 1.74

Adj. EPS (in €)2 0.37 0.39 1.14 1.09

1 The 9M/2018 period includes an extraordinary earnings contribution of € 45.8 m after tax from the sale of a real

estate company belonging to the Group. 2 Adjusted to discount the extraordinary earnings contribution.

Revenue

[€ m]

EBIT

margin

Page 35: Wacker Neuson Group Working side by side with our …...Mini Excavators Mobile Cranes Compactors & Pavers Graders & Dozers Changing market structurein China –compact equipment on

Q3/19: Above-average growth with light equipment

467.2

14.7

114.9

337.6

Total Q3/19

Asia-Pacific

Americas

Europe

Business development by region and business segment

35

Q3/19: Double-digit growth in all regions

Revenue Europe +10.0% yoy (adj. for FX effects: +9.9%)

▪ Continued above-average growth in England, France, Germany, Austria,

the Czech Republic, Spain and Italy

▪ Gains in particular with dumpers, wheel loaders, telescopic handlers and

compaction technology

▪ Revenue generated with Weidemann- and Kramer-branded compact

equipment for the agricultural sector +23% yoy

▪ EBIT1 was clearly lower than the prior year at € 36.0 m (Q3/18:

€ 47.9 m) due to, among other things, a drop in productivity;

positive effect through consolidation

Revenue Americas +17.6% yoy (adj. for FX effects: +12.7%)

▪ Continued strong growth in worksite technology, esp. generators and

light towers

▪ Significant gains with compact equipment imported from Europe

▪ EBIT1 improved vs. PY (Q3/19: € -1.9 m; Q3/18: € -3.6 m); still affected

by cutbacks in the production program and initial difficulties in rolling out

new processes in the US

Revenue Asia-Pacific +32.4% yoy (adj. for FX effects: +32.4%)

▪ Despite the rise in revenue, earnings did not improve due to strong price

pressure in China (among other things)

▪ Sale of equipment to OEM partner below planned figures due to difficult

market dynamics in China

72%

25%

3%

100%

+10%

+18%

+32%

+12%

36.0

-1.9

-1.3

40.2

Q3/19: Comments

467.2

96.9

248.5

127.1

Total Q3/19

Services

Compact equipment

Light equipment 27%

53%

21%

100%

+17%

+13%

+6%

+12%

share yoy EBIT1Revenue [€ m]

share yoy

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

Revenue [€ m]2

Page 36: Wacker Neuson Group Working side by side with our …...Mini Excavators Mobile Cranes Compactors & Pavers Graders & Dozers Changing market structurein China –compact equipment on

Inventory and receivables clearly above target, NWC elevated

36

Inventories

Trade payables

Trade receivables

▪ Inventories and trade receivables remained significantly higher than

planned

▪ Trade payables back at prior-year level after temporary rise in Q4/18

through Q2/19 (caused, among other things, by pre-buy engine stock-

building)

▪ Significant rise in net working capital (see next slide)

Comments

439 434 459 462500

553

633 645 663

150 141 153130

151 144

179155

173

0

100

200

300

400

0

100

200

300

400

500

600

700

Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19

249 235273

320 304 303

371413 400

60 5567 64 67

59

78 73 78

0

50

100

150

200

0

100

200

300

400

500

Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19

120134

149163 167

213 208 199

164

41 43 50 46 50 56 59 48 43

0

100

200

300

400

0

100

200

300

Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19

1 Days inventory outstanding = (inventories/(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.

Trade payables

[€ m]

Inventories

[€ m]

DIO1

[days]

Trade receivables

[€ m]

DPO3

[days]

DSO2

[days]

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Free cash flow remains negative

37

Net working capital

Free cash flow

Cash flow from operating activities

▪ Increase in net working capital due to high levels of inventory and trade

receivables coupled with reduction in trade payables (see previous

slide)

▪ Free cash flow at € -203 m after first three quarters of the year

▪ Production cutbacks were more extensive than planned in order to

rapidly reduce inventory levels while minimizing impact on market

prices

▪ Development of cash flow pushed net financial debt up further (see

next slide)

6163

-41

6 10 8

-116

-29

2

-150

-100

-50

0

50

100

150

Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19

Comments

51 46

-45

57

-3 -12

-143

-43 -17

-160

-120

-80

-40

0

40

80

Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19

568 536583 620 638 644

797858 899

38% 34%39%

34%38%

35%

46%42%

48%

0%

20%

40%

60%

80%

100%

0

200

400

600

800

1000

Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19

Free cash flow

[€ m]

Cash flow from operating activities

[€ m]Net working capital

[€ m]

Net working capital

[as a % of revenue]

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1,103 1,115 1,122 1,170 1,200 1,221 1,241 1,188 1,217

67% 69%65% 65% 65% 64%

58%53% 54%

0%

20%

40%

60%

80%

100%

0

200

400

600

800

1,000

1,200

1,400

Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19

195148

193 188 193 205

358

484513

18%13%

17% 16% 16% 17%

29%

41% 42%

0%

20%

40%

60%

80%

100%

0

100

200

300

400

500

600

Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19

Increased gearing in balance sheet

38

▪ Negative development of cash flow (see previous slide) pushes net

financial debt up to € 513 m

▪ Gearing1 up further at 42%

▪ Net financial debt / EBITDA2 clearly above target corridor

0.80.7

1.2

0.60.8 0.8

1.61.5

1.9

0.0

0.5

1.0

1.5

2.0

Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19

Net financial debt and gearing1

Equity and equity ratio

Net financial debt/EBITDA2

Comments

Net financial debt

[€ m]

Equity

[€ m]

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

Gearing1

Equity ratio

Net financial debt/

EBITDA2 [x]

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Outlook for 2019

39

Earnings guidance for 2019 adjusted

Business index for construction sector is cooling markedly Business index for ag sector remains on downward path

2012 2013 2014 2015 2016 2017 2018 2019

1,707

9.4%

5%

10%

15%

0

500

1,000

1,500

2,000

2018 Guidance 2019

1,775–1,850

(upper end)

8.3–8.8%

(prev.: 9.5–10.2%)

+4–8%

Comments

Source: CECE, October 2019 Source: CEMA, October 2019

▪ Recent order intake for the Wacker Neuson Group slightly below prior year

▪ Business indices from CECE and CEMA on a downward tilt, IMF has again

lowered its economic outlook

▪ Revenue guidance for 2019 confirmed with revenue expected at the upper

end of the projected range (previously: in the upper half) and EBIT margin

set in the 8.3 to 8.8 percent range (previously: 9.5 to 10.2 percent range)

▪ At the close of the year, net working capital as a percentage of revenue

expected to be significantly higher than prior year (prev.: slightly higher

than prior year)

▪ Investments are expected at around € 90 m (previously: around € 100 m)

Revenue

[€ m]

EBIT

margin

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Financial calendar and contact

40

November 7, 2018 Publication of nine-month report 2019, investors and analysts call

November 11, 2019 Frankfurt roadshow

November 14, 2019 Paris roadshow

January 21, 2020 German Corporate Conference (KeplerCheuvreux), Frankfurt

February 4, 2020 Hamburg investors' day (Montega)

March 16, 2020 Publication of the 2019 Annual Report, press conference, Munich

March 25, 2020 Bankhaus Lampe German Conference, Baden-Baden

April 1, 2020 MainFirst Corporate Conference, Copenhagen

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 November 2019. 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

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

[email protected]

www.wackerneusongroup.com