Wacker Neuson with strong growth in the first half of 2022 (German)

Profit development compared to the first quarter ^

DGAP-News: Wacker Neuson SE / Keywords: Semi-annual report

Wacker Neuson SE: Wacker Neuson with strong growth in the first half of 2022

09/08/2022 / 07:00

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Wacker Neuson with strong growth in the first half of 2022

* Sales in H1 increased by 15.5% year-on-year, double-digit growth in

all reporting regions

* EBIT margin of 8.2%; -2.6 PP e.g. Previous year; Persistently difficult

Supply chain situation and persistently high costs of materials, energy and

Transports are cost-effective; second quarter with positive

Profit development compared to Q1 (+1.3 pp)

* Net working capital increase due to shortage

Availability of materials and ensuring the possibility of delivery

* Supply chains and price dynamics in the purchasing market remain the largest

challenges

* Forecasted sales unchanged at the level of 1900 to 2100 million EUR;

Earnings forecast specified: EBIT margin from 9.0 percent to 10.0 percent

expected

Munich, August 9, 2022 – Wacker Neuson Group, leading manufacturer

light and compact equipment, its sales increase in the second year

the quarter of 2022 the Group achieved in the first half of the year

2022 new record turnover of 1,072.5 million euros, an increase of 15.5

percentage compared to the previous year (1/21 of the year: EUR 928.3 million).

Adjusted for foreign exchange effects, the increase was 13.2%. Profitability

appeared against the background of persistently difficult

supply chain situation and persistently high costs of materials, energy and

Transports still under pressure: Earnings Before Interest and Taxes (EBIT)

fell by 12.6 percent. up to 87.5 million euros (1/21 of the year: 100.1 million euros). this

The EBIT margin reached 8.2%, which means a decrease by 260 basis points (1/21 of the year:

10.8 percent). In the second quarter, the EBIT margin improved compared to

by 1.3 percentage points in the first quarter (Q2 / 22: 8.8 percent; Q1 / 22: 7.5

Percent).

“Our customers’ demand for our innovation and reliability

the products remain strong. Incoming orders were already in the first

An unusually high quarter – in the second quarter this dynamics even deepened

accelerated. So we have much more than the present one

order backlog going beyond the financial year. However, it stands out

as far as the supply situation is concerned, there is still no improvement as well

Material, energy and transport costs remain high

Level. All this negatively affects our profitability. we

however, we expect our prices to rise from the third quarter

will positively affect the gross margin “- says Dr. Karl Tragl,

President and CEO of the Wacker Neuson Group.

Double-digit growth across all reporting regions

In the Europe segment (EMEA), sales in the first half of the year were EUR 826.3 million.

12.1 percent above the value of the previous year (1/21 of the year: EUR 737.1 million).

In addition to the home market in Germany, he was also the engine of growth

the largest European markets for construction machinery, Great Britain and France

they were also able to record double-digit growth rates. Group

took advantage of the strong demand for wheel loaders and dumpers for

the construction industry, additionally the group’s own rental i

service activities and high-margin activities in the field of spare parts. FROM

Sales increase by 18.7 percent to EUR 207.4 million (H1’21: EUR 174.7 million)

business with compact machines from the Kramer i

Weidemann is strong again in agriculture.

In the Americas region, demand grew worldwide

Positive distribution channels. There was only one sale in the first half of the year

significant increase by 28.0 percent to 202.8 million euros (1/21 of the year: 158.4 million euros)

Euro). The sales trend has been swept by the sails due to the weakness of the euro

versus US dollar: Fx-adjusted sales increased

16.8 percent As part of the diversification of the sales strategy

Wacker Neuson was able to do more in North America in the first half of 2022.

win dealers.

In the Asia-Pacific region, sales increased 32.3 percent compared to the previous year

up to EUR 43.4 million (H1 / 21: EUR 32.8 million), currency-adjusted

An increase of 26.8% Here there has been strong growth in Australia

continued while the Group struggled with the declining construction machinery market in China

I saw exposed. On the other hand, the business in

Southeast Asian countries and India. Those produced in a Chinese factory

Machines are now increasingly used in export markets such as:

for example Africa and South America.

Material bottlenecks and sustained high costs affect profitability

With an EBIT margin of 8.2 percent profitability came first

H1 / 21: 10.8 pp below the previous year’s value (H1 / 21: 10.8

Percent). Basically, the persistent high cost of materials,

Energy and transport have a negative effect on the result. Apart from

Machine modifications caused by material bottlenecks

performance in factories. This was due to the higher sales volume

and the positive development in operating costs cannot be compensated.

However, a clear trend was already visible in the second quarter

Improvement in key financial results compared to the first quarter. this

EBIT margin of 8.8 percent was by 1.3 percentage points. higher than in the first quarter

(Q1 / 22: 7.5%). Positive development in both

gross profit and operating expenses. this

The gross profit margin improved by 0.7 percentage points (Q2 / 22: 23.7

Percent; Q1 / 22: 23.0%), operating costs share in sales

0.4 percentage points (Q22: 15.3%; Q22: 15.7%).

The increase in net working capital leads to negative free cash flow

At the end of the first half of the year, the net working capital ratio increased to 30.6

percent (6/30/21: 26.7 percent; 12/31/21: 26.1 percent) [1]. network

As at the reporting date, the working capital amounted to EUR 673.9 million, and therefore was

well above the value of the previous year and the level at the beginning of the year

financial year (30/06/2011: EUR 528.9 million; 31/12: EUR 497.6 million).

Responsible for the development were increased requirements in

Relationship with the dynamic development of the business and the increased

inventories. Especially the stock of unfinished machines

noted as a consequence of a deterioration in the supply chain

significant increase as a result of the Ukrainian war. He was next to it

Inventory of raw materials and components to ensure the possibility of delivery

supercharged.

As a result, free cash flow (before the release of

term deposit) at the level of EUR -123.8 million (1/21 of the year: EUR 133.5 million). [2] this

net financial debt [3] increased compared to the end of the year

EUR 211.1 million (31 December 2021: -EUR 0.8 million).

A forecast of results for 2022 is given: EBIT margin between 9.0 and 10.0

expected percentage

Due to the consistently strong demand, the Management Board intends

Fiscal year 2022 no change from sales from 1900 to 2100

million euros. However, it is expected difficult

Supply chain situation and constant price pressure on materials and energy

and transport continued to have a negative impact in the second half of the year

will affect the development of earnings. On the other hand, they should

implemented price increases from the third quarter

have a positive effect on profitability. Accordingly, the board of directors

taking into account the current course of business, the prevailing

General terms and conditions of the Wacker Neuson Group

Opportunities and threats range from earnings forecast for the full year

2022 defined. An EBIT margin of between 9.0 and 10.0 is expected

percent (previous forecast: 9.0 to 10.5 percent).

[1] Net working capital as a percentage of annual quarterly sales.

[2] Before any outflows are settled in permanent deposits 100

EUR million in H1 and inflows of EUR 130 million in the second half of

[3] Net financial debt = long term and short term financial liabilities

+ short-term part of long-term liabilities – cash i

Cash equivalents – term deposits with maturity <1 year. in

Definition of net financial debt of the Wacker Neuson Group

Leasing liabilities in accordance with IFRS 16 were not taken into account.

Key figures of the Wacker Neuson Group

Key figures in EUR million 1/22 H1 / 21 D- Q2 / 22 Q2 / 21 D-

e- e-

ll-

t- t-

ah

Sales 1,072.5 928.3 + – 550.9 494.3 + –

1- 1-

5- 1-

-, –

5- 5-

%%

EBIT 87.5 100.1 – 48.4 56.5 –

1- 1-

2- 4-

-, –

6- 3-

%%

EBIT margin (%) 8.2 10.8 – 8.8 11.4 –

2- 2-

-, –

6- 6-

P- P-

pp

Result for the period 66.1 70.0 – 37.5 40.9 –

5- 8-

-, –

6- 3-

%%

Earnings per share in EUR 0.97 1.00 – 0.55 0.59 –

3- 6-

-, –

0- 8-

%%

Free cash flow1 -123.8 133.5 – -55.4 123.7 –

1 Free cash flow before

Inclusion of outflows in

Fixed deposits of 100

million in Q1 21 and receipts

in the amount of EUR 30 million in Q1 / 22

and EUR 100 million in Q2 / 22.

Contact person:

Wacker Neuson PL

Suzanne Rizzo

Investor Relations

Preussenstraße 41

80809 Munich

Phone + 49- (0) 89-35402-1261

[email protected]

www.wackerneusongroup.com

The complete bi-annual report of the Wacker Neuson Group is available at

available at the following link:

www.wackerneusongroup.com/relacje-inwestorów/raporty-finansowe-prezentacje/

Pictures of the Wacker Neuson Group are available at:

https://wackerneusongroup.com/news-media/pressebilder

About the Wacker Neuson Group:

The Wacker Neuson Group is an international group of companies

employs about 6,000 employees. In fiscal 2021, sales were 1.87

billions of euros. As a leading manufacturer of light and compact equipment

The group offers its clients around the world a wide range of products,

wide range of services and services and efficient

supply of spare parts. The offer is directed primarily to clients from

Major construction industries, gardening and landscaping, agriculture

Municipalities and the recycling industry as well as to railway companies and

industrial company. Product brands belong to the group of companies

Wacker Neuson, Kramer and Weidemann. Wacker Neuson SE shares will be sold in

regulated market (Prime Standard) of the Frankfurt Stock Exchange

(ISIN: DE000WACK012, WKN: WACK01) and is listed on the SDAX of the German Stock Exchange

listed.

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09/08/2022 publication of corporate news / financial announcement,

provided by DGAP – EQS Group AG service.

The issuer / publisher is responsible for the content of the application.

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Media archive at http://www.dgap.de

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German

Company: Wacker Neuson SE

Preussenstr. 41

80809 Munich

Germany

Telephone: +49 – (0) 89 – 354 02 – 0

Fax: +49 (0) 89 354 02 – 298

E-mail: [email protected]

Internet: www.wackerneusongroup.com

ISIN: DE000WACK012

WKN: WACK01

Indices: SDAX

Exchanges: Regulated market in Frankfurt (Prime Standard);

Open market in Berlin, Dusseldorf, Hamburg, Hannover,

Munich, Stuttgart, Tradegate Exchange

EQS NewsID: 1415625

End of news DGAP news service

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1415625 08/09/2022

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