Wacker Neuson: Press release financial year 2021

Wacker Neuson Group with a significant increase in turnover and profitability

  • Group turnover at 1,866.2 million euros (+16%); supply chain bottlenecks slow the pace of growth

  • Significant increase in profitability: EBIT margin at 10.3% (+5.6 percentage points) including the positive effect on the result of the reversal of provisions for bad debts

  • Net working capital at 26.7% well within the target range of 30 percent

  • High free cash flow translates into a positive net financial position

  • Guidance for 2022: expected revenue between 1,900 and 2,100 million euros, EBIT margin between 9.0 and 10.5%

  • Dividend proposal at the AGM: 0.90 EUR per share

  • Supervisory board extends contract with CSO Alexander Greschner

Munich, March 29, 2022 The Wacker Neuson Group has returned to its growth trajectory. In fiscal 2021, the business development of the Wacker Neuson Group recovered quickly after the decline in 2020 revenues triggered by the COVID-19 pandemic. The group recorded a turnover of 1,866.2 million euros, an increase of 15.5% compared to the previous year (2020: 1,615.5 million euros).

“Looking back on 2021, hard work and concerted effort haveit is a successful year. We have been hampered by overloaded and interrupted supply chains on several occasions. Shortages of raw materials and components have repeatedly led to rework efforts and this, compounded by rising material prices and skyrocketing shipping costs, has negatively impacted margins. However, our employees have worked tirelessly to get as many machines as possible onto our production lines and deliver them to our customers despite all the obstacles,” explains Dr. Karl Tragl, CEO of the Wacker Neuson Group.

In Europe, revenue increased to €1,477.5 million, an increase of 14.6% (2020: €1,289.7 million). This clearly exceeds the previous record reached in 2019 (2019: 1,379.0 million euros). Beside the The group’s domestic markets of Germany and Austria, wwhich have once again become sources of growth in the construction sector, activity has also developed very strongly in the United Kingdom. In the majority of Southern, Eastern and Northern European countries, the Group was also able to post high double-digit growth, albeit against a lower baseline in some cases due of the impact of the pandemic. Once again, business with customers in the agricultural sector developed in a particularly positive way. Despite the stable development of the business in 2020 and the resulting solid basis of comparison from this year the decline in revenue was only 1.9% the Group succeeded in increasing its turnover in this segment by 14.5% to reach 348.4 million euros (2020: 304.3 million euros).

Revenue in the Americas a region particularly affected by the COVID-19 pandemic recovered in fiscal year 2021, partly due to a gradual recovery in demand from rental companies over the year, increasing overall by 21.5% to €328.6 million (2020: 270 .4 million euros). Business developed particularly well in Canada, where the Group has already been able to exceed pre-crisis sales levels.

In Asia-Pacific, revenue increased by 8.5% year-on-year to EUR 60.1 million (2020: EUR 55.4 million). While the Group continued to face a difficult market environment with overcapacity and strong pricing pressure in China, business in Australia grew at a dynamic pace.

The Group has significantly increased its turnover in this market and also recorded double-digit growth compared to 2019 before the crisis.

Strong increase in profitability

The Group’s profitability increased significantly during the 2021 financial year even compared to the pre-crisis level of 2019. After the sharp decline in 2020, earnings before interest and taxes (EBIT) increased by 155.6% to EUR 193.0 million fueled among other things by the increase in revenues accompanied by strict cost control measures and was therefore significantly higher than the 2019 EBIT (2020: 75.5 million euros, 2019: 153.1 million euros). The EBIT margin reached 10.3% (2020: 4.7%, 2019: 8.1%). The result includes a net positive effect of the reversal of provisions for bad debts for an amount of EUR +13.5 million. During the previous financial year, value adjustments amounting to -33.3 million euros had a negative effect on the result.

Net working capital ratio further reduced

After a significant reduction in the net working capital ratio in the prior year, it further declined in 2021. At 26.7%, it met the strategic target range of 30% or less of revenue (2020: 30 .8%). In absolute terms, net working capital remained at the same level as the previous year.

High free cash flow translates into a positive net financial position

Driven by the significant increase in results and a reduction in non-current financial assets, gross cash flow at €375.2 million almost doubled compared to the previous year (2020: €197.9 million ). Cash flow from operating activities (after investments in net working capital) amounted to 331.7 million euros and is therefore lower than the high figure of the previous year (2020: 420.0 million euros). euros). 2020 saw a significant reduction in net working capital. Free cash flow before forward investments of EUR 115.0 million amounted to EUR 264.1 million (2020: EUR 344.0 million). High cash value pushed net financial debt1 during the 2021 financial year in the negative range at -€0.8 million (December 31, 2020: €122.9 million).

Guidance for 2022: expected revenue between 1,900 and 2,100 million euros, EBIT margin between 9.0 and 10.5%

The board expects revenues to be between €1,900 and €2,100 million in fiscal 2022. EBIT margin is projected in the 9.0-10.5% range . Given the personnel shortages caused by the Omicron variant both on the supply side and within the Wacker Neuson Groupit’s production and logistics networks the management board expects the strong supply constraints to continue with limited visibility on future developments. It is unlikely that the Group will be able to fully offset the resulting inefficiencies and materially higher procurement, shipping and energy costs compared to the prior year.

This forecast does not take into account the currently unpredictable impact of the war in Ukraine on macroeconomic developments and global supply chains.

1 Net financial debt = long-term and short-term borrowings + current share of long-term borrowings Cash and cash equivalents fixed-term investments with a duration of less than 1 year. The definition of net financial debt as applied by the Wacker Neuson group does not include lease debts in accordance with IFRS 16.

Dividend proposal at the AGM

Wacker Neuson SE has adopted an attractive remuneration policy for shareholders to ensure that shareholders enjoy a regular and appropriate share of the company’s profits. The Wacker Neuson SE the dividend policy provides for a payment per share of 40 to 60% of the Group’s earnings per share. At the General Meeting of June 3, 2022, the Management Board and the Supervisory Board will propose the distribution of a dividend of EUR 0.90 per eligible share.

Supervisory board extends contract with CSO Alexander Greschner

The Supervisory Board has extended the contract of Chief Sales Officer Alexander Greschner for five years. Mr. Greschner has held the position of CSO within the Wacker Neuson Group since 2017, also assuming responsibility for the aftermarket and marketing. The Supervisory Board is delighted to continue this relationship of trust and fruitfulness with Mr. Greschner.

Key indicators of the Wacker Neuson Group

Key figures of million

2021

2020

Delta

Income

1,866.2

1,615.5

+16%

EBIT

193.0

75.5

+156%

EBIT margin (in %)

10.3

4.7

+5.6 PP

Total profit/loss for the period

137.9

14.1

+878%

Earnings per share in

1.99

0.20

+895%

Free movement of capital1

264.1

344.0

-23%

1 Before fixed-term financial investments of €15.0 million for fiscal year 2020 and €115.0 million for fiscal year 2021.

Contact:

Wacker Neuson SE Christopher Helmreich

Head of Investor Relations & Corporate Communications Preussenstrasse 41

80809 Munich, Germany

Phone. : +49 – (0)89 – 354 02 – 427[email protected] www.wackerneusongroup.com

The Wacker Neuson Groups the complete annual report for the 2021 financial year is available at the following link: www.wackerneusongroup.com/en/investor-relations/financial-reports-presentations/

For press images relating to the Wacker Neuson Group, please see: https://wackerneusongroup.com/en/news-media/press-images

About Wacker Neuson Group:

The Wacker Neuson Group is an international network of companies employing approximately 6,000 people worldwide. During the 2021 financial year, the Group achieved a turnover of 1.87 billion euros. As a leading manufacturer of light and compact equipment, the Group offers its customers a wide product portfolio, a wide range of services and an efficient spare parts service. The Wacker Neuson Group is the partner of choice for professional users in construction, gardening, landscaping and agriculture, as well as municipalities and companies in sectors such as recycling and rail transport. The product brands Wacker Neuson, Kramer and Weidemann belong to the group. Wacker Neuson SE shares are listed on the regulated Prime Standard segment of the Frankfurt Stock Exchange (ISIN: DE000WACK012, WKN: WACK01) and on the SDAX index of the German stock exchange.

Comments are closed.