Wacker Neuson SE / Key word(s): Final Results24.03.2011 / 10:00Wacker Neuson expects further growth and increased returns Development in current year confirms upwards trend - Restructuring plans -Outlook to 2013(Munich, March 24, 2011) The Wacker Neuson Group exceeded its own forecastsfor revenue and earnings in 2010. The company is leveraging its strongfinancial position during the economic upturn. Wacker Neuson expects stronggrowth to continue through 2013.In 2010, the economic upturn in Europe and the Americas revived key targetmarkets for Wacker Neuson: construction and - as the year progressed - alsoagriculture. The Group benefited from an increase in demand for light andcompact equipment. Customer investments were fuelled by the need to replaceexisting equipment and by government-funded infrastructure programs.All business segments developed positively in 2010, resulting in Grouprevenue of EUR 757.9 million for the period, a 27 percent rise on theprevious year's figure of EUR 597.0 million. Above-average growth in thefourth quarter played a key role. At EUR 206.3 million, Q4 revenue was 34percent up on the same quarter the previous year (EUR 154.2 million). Thiswas primarily driven by a significant leap in revenue from compactequipment plus steady, strong demand for light equipment, which is an earlymover in economic cycles. Profit before interest, tax, depreciation andamortization (EBITDA) amounted to EUR 77.8 million (previous year: EUR 27.2million). The EBITDA margin was 10.3 percent, compared with 4.6 percent inthe previous year.'Our strong performance in 2010 enabled us to exceed our own forecasts,'explains Richard Mayer, Spokesperson for the Executive Board of WackerNeuson SE. 'It also shows that we took the right approach during theeconomic crisis by setting our sights on the upswing and adjusting ourcosts structures flexibly, but not at all costs. This enabled us to keepemployee expertise in the company - and we are now reaping the benefits ofthis as business picks up. Looking forward, I also believe that this willhelp us achieve above-average earnings growth.'Group leverages strong financial position in the upswingThe Group's financial and assets position remains strong, with an equityratio (before minority interests) of 80.6 percent. The Group secured a highlevel of liquidity during 2009, primarily by reducing working capital andscaling back investments, and effectively utilized this in 2010. Despitedoubling investments to EUR 85.0 million, the company reported just aslight net financial debt of EUR 13.7 million at the close of the year, andis thus almost debt free. The Group has drawn on less than half of itscredit lines, which gives it plenty of further financial backing.High payout ratio'As we refrained from making a dividend payment last year, we want ourshareholders to share in the success of the Group this year with a payoutof EUR 0.17 per share. This corresponds to around 50 percent of net profitfor the Group. The Executive Board and Supervisory Board will propose thepayout at the AGM,' reports Günther Binder, Member of the Executive Boardof Wacker Neuson SE responsible for finance. Earnings per share amounted toEUR 0.34 in 2010 (previous year: EUR -1.57).Alignment of legal and operative structures at Wacker Neuson SEThe Group's parent company, Wacker Neuson SE, is to be converted to aholding company. The operating segments Production Germany, Sales Germanyand Sales Europe will be separated from Wacker Neuson SE in their entiretyand established as separate legal entities. Central Group and corporatefunctions will remain at Wacker Neuson SE. A divestiture and incorporationcontract will be proposed for approval at the AGM on May 26, 2011. Underthe proposed holding structure, Wacker Neuson SE shall hold all shares and100 percent of the capital in the three new German affiliates. Since themerger with Neuson Kramer in 2007, key lines of business within the companyare already operating as holding companies. The change in structure followsthrough on the merger by aligning both subgroups within the Wacker NeusonGroup. The wholly owned American subsidiary, Wacker Neuson Corporation,also transitioned from a parent company to a holding structure on January1, 2011 and now manages production, logistics and sales within theframework of separate legal entities. These measures shall not result inany changes for shareholders in our company as Wacker Neuson SE will remainthe sole owner of the new companies. In financial terms, the new legalstructure does not affect the Group's net assets and earnings situation.Impact of the earthquake in JapanThe devastating repercussions from the earthquake in Japan could affectsome of our suppliers in this region in the short term. This, in turn,could lead to production delays at Wacker Neuson. 'We will continue toclosely monitor the situation among our suppliers in the region. However,we do know that our suppliers' facilities in Japan are not directlyaffected,' states Günther Binder.Optimistic outlook for the current fiscal yearThe Executive Board remains committed to its forecast for 2011. 'Our solidorder backlog for compact equipment, which at December 31, 2010 was over350 percent up on the same date last year, plus dynamic trends in the firstweeks of the current year, give us every reason to expect positive businessgrowth in 2011. We anticipate that revenue will rise by at least 15 percentand our EBITDA margin will reach at least 12 percent. Our forecast,however, is qualified by the assumption that the situation in Japan doesnot deteriorate,' outlines Richard Mayer.Investments in profitable growth through 2013Over the current fiscal year, the Group intends to invest around EUR 100.0million in total in property, plant and equipment, including a newproduction facility in Hörsching (near Linz), Austria. A continued rise indemand for compact equipment would most likely push the existing plant inLinz - the Austrian competence center for excavators, dumpers and skidsteer loaders - to its capacity limits.The Group's strong financial position will enable it to implement itsstrategies and reach its goals of further growth - at an internationallevel in particular. The Group plans to return to its 2007 pre-crisisrevenue level by the year 2013. Following the drop in customer investmentsover the last three years, the Group expects the backlog to fuelexpenditure in 2011 and 2012 - for rental fleets also. The global trend toexpand and improve infrastructure (such as road, rail and telecommunicationnetworks) and building modernization projects offer great opportunities forthe company's business model. In addition, the compact equipment portfolio,especially compact excavators and wheel loaders, is still at the beginningof its market lifecycle worldwide - so the Group foresees the greatestgrowth potential in this segment.The company will also consider additional acquisitions and partnerships inthe medium term to strengthen its product offering, provide added value toits customers or expand its international footprint.Key figures: Wacker Neuson Group*in EUR million Q42010/Q42009**/FY2010/FY2009** Revenue 206.3/154.2/757.9/597.0 EBITDA 22.2/10.4/77.8/27.2 EBITDA margin as a % 10.7/6.8/10.3/4.6 EBIT 11.4/-99.7/36.7/-113.1 Consolidated profit/loss for the period 8.6/-99.7/23.9/-110.1 * All figures include effects from purchase price allocation; differencesmay occur as a result of figures being rounded up or down.** Earnings for 2009: One-off write-downs in the amount of EUR 100.3million, primarily on goodwill accruing to the Neuson Kramer subgroup(excluding EBITDA), as well as restructuring costs (EUR 9.6 million in2009) and deferred tax revenue (EUR 2.7 million: only for Group earnings). Your contact partner at Wacker Neuson:Wacker Neuson SE Katrin Neuffer Preussenstr. 41 80809 Munich, Germany Tel. +49 - (0)89 - 354 02 - 173katrin.neuffer@wackerneuson.com Internet: www.wackerneuson.comAbout Wacker NeusonWacker Neuson SE is a global manufacturer of light and compact equipment.With over 30 affiliates and more than 180 locations across the globe, thecompany offers an exceptionally broad portfolio of products and services. Manufacturing activities are distributed across three German, one Austrian,two American and one Philippine production sites. Almost all productsmanufactured by the company are branded Wacker Neuson. The only exceptionsto this in Europe are Kramer Allrad products and Weidemann-brandedagricultural machinery. With over 300 product categories and complementaryrental, spare parts and repair services, Wacker Neuson is the partner ofchoice among professional users in construction, gardening, landscaping andagriculture, as well as among municipal bodies and companies in theindustrial and recycling sectors.End of Corporate News---------------------------------------------------------------------24.03.2011 Dissemination of a Corporate News, transmitted by DGAP - acompany of EquityStory AG.The issuer is solely responsible for the content of this announcement.DGAP's Distribution Services include Regulatory Announcements,Financial/Corporate News and Press Releases.Media archive at www.dgap-medientreff.de and www.dgap.de---------------------------------------------------------------------Language: English Company: Wacker Neuson SE Preußenstr. 41 80809 München Deutschland Phone: +49 - (0)89 - 354 02 - 0 Fax: +49 - (0)89 - 354 02 - 390 E-mail: info@wackerneuson.com Internet: www.wackerneuson.com ISIN: DE000WACK012 WKN: WACK01 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 116749 24.03.2011
