Wacker Neuson SE: Wacker Neuson shareholders approve higher dividend

Wacker Neuson SE / Key word(s): AGM/EGM/Dividend

27.05.2014 / 16:36

Wacker Neuson shareholders approve higher dividend

(Munich, May 27, 2014) The annual general meeting of Wacker Neuson SE took place in Munich today. In addition to a resolution on the appropriation of profit for fiscal 2013, the agenda included presentation of the annual financial statements, approval of Executive Board and Supervisory Board actions, the appointment of two new Supervisory Board members and the appointment of the auditor for the current year.

248 shareholders representing 58,323,626 of voting rights in total attended the Wacker Neuson SE annual general meeting (AGM) in Munich today. Based on a share capital of 70.14 million shares, this corresponds to a 83.15-percent attendance.

CEO Cem Peksaglam's assessment of fiscal 2013 was generally positive. Two particular success stories he highlighted were the international expansion of compact equipment sales and increased diversification into other industries with products tailored to local requirements. "Beyond the construction industry, our products are popular for farm, yard, barn and riding stable work, but also in gardening, landscaping, energy, logistics, recycling and municipal services. Meanwhile, we continued to tailor our versatile compact product portfolio to the needs of regional markets," affirmed Peksaglam. "Despite difficult market conditions, we managed to achieve growth through our strategy of cross-selling across our product segments and by increasing our international footprint," Peksaglam added. The Group's CEO also highlighted the performance of the Europe region, which was well above average for the industry. The Group was able to further expand its market position in all three of its business segments (light equipment, compact equipment and services), which brought in record revenue of EUR 1.16 billion for 2013.

CFO Günther Binder pointed to factors like the reduced ratio of operating costs (sales plus general and administrative expenses and R&D expenses) to revenue, thus underlining the productivity gains achieved throughout the Group. The strong increase in cash flow from operating activities, flanked by a slight drop in investment compared with the previous year, resulted in a positive free cash flow for the first time since 2009, something the Group aims to repeat in 2014.

Peksaglam also discussed the current fiscal year. Performance in the first quarter of 2014 was very good, as expected. Group revenue grew by 13 percent, or 17 percent when exchange rate fluctuations are discounted. "In Europe, we benefitted from a sustained recovery in the construction industry, a more positive outlook in the agricultural sector and a milder than usual winter, and this - combined with a revival in the US construction industry - contributed to our strong performance," summarized Peksaglam. The compact equipment (+21 percent) and services (+20 percent) segments saw particularly good growth, and profitability was another area where the Group was able to make a strong gain.

Technology developments
At the AGM, CTO Martin Lehner outlined the technology trends in light of the new EU emissions standards. He warned that all construction equipment and engine manufacturers face stiff challenges. Products had already been optimized to comply with stricter guidelines introduced in recent years. Now, Wacker Neuson is taking a holistic approach in a bid to reduce fuel consumption even further and make its equipment more environmentally friendly. "We are looking at ways to improve efficiency by ensuring that engine, hydraulics, tires, control technology and other components work together seamlessly," explained Lehner. "At the same time, we want to maximize process and resource efficiencies for our customers. Our goal is to provide them with the optimum technology for their work process," Lehner continued. Shareholders were able to see the latest innovations for themselves at the stand of products on display at the Munich AGM.

Outlook and strategy
Shareholders were particularly interested in the company's future development prospects. "After practically doubling our revenue over the past four years, we want to continue on this growth curve in 2014 and beyond. A growing international footprint will be one of the key enablers here," declared Peksaglam. Apart from Europe and North America, the Group will be increasingly focusing on selected emerging markets in Asia, Africa, South America and south-eastern Europe in order to leverage future growth potential. Cem Peksaglam confirmed Wacker Neuson's forecast for 2014, which targets revenue growth of 8 to 12 percent (to reach between EUR 1.25 and 1.30 billion) and an EBITDA margin of between 13 and 14 percent.

The Group's robust financial shape also provides certainty and ensures continuity. "A solid financial footing is a must for companies seeking to maintain their technology leadership through innovation, further expand their existing markets and tap into new markets. And we are very solid," maintained Peksaglam. "Meanwhile, we will continue to evaluate opportunities for mergers, acquisitions and strategic alliances."

Dividend payout
Wacker Neuson wants its shareholders to have an attractive share in the success of the Group. Shareholders approved a proposal by the Executive Board and Supervisory Board to pay out a dividend of EUR 0.40 per share for fiscal 2013 (previous year: EUR 0.30). This corresponds to a distribution ratio of 46 percent based on Group profit for the year, a figure that is one third higher than in the previous year. As such, the distribution ratio is in line with Wacker Neuson's dividend policy.

Changes to the Supervisory Board
At the AGM, two new Supervisory Board members were appointed to complete the six-strong Board. The election was required due to the resignations of Dr. Bruse and Dr. Kollmar - two of the Supervisory Board's shareholder representatives. Both the Executive Board and the Supervisory Board thanked the two men for their dedicated and constructive contributions to the company's success. Mr. Ralph Wacker and Dr. Matthias Schüppen were elected to sit on the Supervisory Board until the next gathering of the AGM, which is expected to take place in May 2015.

Voting results from the 2014 AGM
Voting results and further information on the AGM are available online at: http://corporate.wackerneuson.com/ir/en-agm.php

Your contact partner:
Wacker Neuson SE
Katrin Yvonne Neuffer
Head of corporate communication /
investor relations
Preussenstr. 41
80809 Munich, Germany
Tel.: +49-(0)89-35402-173

About Wacker Neuson: The Wacker Neuson Group is a leading manufacturer of light and compact equipment
with over 40 affiliates, 140 sales and service stations and more than 12,000 sales and service partners across the
globe. The Group can trace its roots back to 1848. Wacker Neuson is the partner of choice among professional
users in construction, gardening, landscaping and agriculture, as well as among municipal bodies and companies
in industries such as recycling and energy. It also offers a global spare parts service. The Wacker Neuson Group
includes the product brands Wacker Neuson, Kramer and Weidemann. In 2013, the Group achieved revenue of
EUR 1.16 billion and employed over 4,100 people worldwide.

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270795  27.05.2014