Q1 Report 2010 - Wacker Neuson Groupand every day – something we certainly excelled at during...
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Q1 Report 2010 Q1/10
Transcript of Q1 Report 2010 - Wacker Neuson Groupand every day – something we certainly excelled at during...
Q1 Report 2010
Q1/10
Figures at a glanceJanuary 1 through March 311
in € million Jan.1– Mar. 31, 2010 Jan.1– Mar. 31, 2009
Key fi gures
Sales 150.3 137.3
by region
Europe 110.0 107.6
Americas 33.0 23.8
Asia 7.4 5.9
by business segment2
Light Equipment 58.8 45.3
Compact Equipment 54.6 54.2
Services 36.9 37.8
EBITDA 3.7 -12.3
Depreciation and amortization 9.6 10.3
EBIT - 5.9 - 22.6
EBT - 6.7 - 23.0
Profi t for the period - 5.7 - 16.6
Number of employees 3,090 3,375
Share
Earnings per share in € - 0.08 - 0.24
Dividend per share in € 03 0.19
Key profi t fi gures
Gross profi t in % 30.3 23.1
EBITDA margin as a % 2.4 - 9.0
EBIT margin as a % - 3.9 - 16.4
Key fi gures from the balance sheet March 31, 2010 December 31, 2009
Property, plant and equipment 652.6 632.7
Current assets 354.9 339.0
Equity 795.1 791.5
Net fi nancial debt 2.0 - 24.9
Liabilities 212.4 180.2
Equity ratio as a % 78.9 81.5
Working capital 233.1 217.9
Cash fl ow Jan.1– Mar. 31, 2010 Jan.1– Mar. 31, 2009
Cash fl ow from operating activities - 2.3 3.8
Cash fl ow from investing activities - 25.1 - 8.3
Cash fl ow from fi nancing activities 7.5 14.0
Free cash fl ow - 27.4 - 4.5
1 Figures include PPA = Purchase price allocation. Purchase price allocation describes the process where purchase costs resulting from acquisitions are allocated to
individually acquired assets, liabilities and contingent liabilities, which are measured at fair value.2 Consolidated sales after discounts.3 Dividend payment proposed at the AGM on May 28, 2010.
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Q1 2010 summary
Overview
During the fi rst quarter of fi scal 2010, Wacker Neuson SE posted signifi cantly higher revenue and profi ts com-
pared with the same period last year. Performance was dampened by the harsh winter experienced in Europe,
a key region for the Group. Nevertheless, orders increased signifi cantly, refl ecting the current upbeat market
climate. In Q1 2010, revenue increased by 9.5 percent due to positive developments in the light equipment
segment, strong sales in the Asia region and the continued recovery in the US. Group fi nances and assets re-
main strong, and the company confi rms its forecast for fi scal 2010.
Q1 2010 compared with Q1 2009
At EUR 150.3 million, revenue is up 9.5 percent on the previous year.
The global upturn has been confi rmed by revenue growth – up 29.7 percent in light equipment, 37.8 percent in
the US and 25.7 percent in Asia.
EBITDA amounted to EUR 3.7 million (previous year: EUR -12.3 million).
Q1 2010 compared to Q4 2009
Order intake in the compact equipment segment is up around 60 percent on Q4 2009.
Short-time work has been reduced from 15 percent (at the end of 2009) to 7 percent.
Working capital has increased slightly (by 7 percent) since the beginning of the year due to increased demand.
Equity ratio totals 78.9 percent. Net fi nancial debt is virtually negligible at EUR 2.0 million, confi rming the
Group’s healthy fi nancial position.
Forecast and strategy
The Wacker Neuson Group expects the construction and agricultural industries to remain on the path to recovery
and anticipates even greater momentum in the second half of 2010. Our outlook for 2010 is optimistic.
The Group confi rms its revenue forecast of at least fi ve percent for the entire year.
It also expects profi t before interest, tax, depreciation and amortization (EBITDA) to rise and is looking to
return to the profi t zone at operative level.
The company will continue to launch compact equipment worldwide.
The upward market trend was confi rmed at bauma, which took place in Munich in April.
The company continues to evaluate alliances and acquisitions in the future.
Foreword by Executive Board
Interim Review
Interim Financial Statements
Income Statement
Total profi t/loss for the quarter
Balance Sheet
Statement of Changes in Equity
Cash Flow Statement
Segmentation
Selected Explanatory Notes to the
Interim Financial Statements
Additional Table
Financial Calendar/IR Contact
1
Dr.-Ing. Georg Sick
CEO and President
Every three years, Munich is host to bauma, the largest and most important
construction trade fair in the world. This key event provides the perfect platform for
companies to showcase their products and latest innovations. In April of this year,
the Wacker Neuson Group presented an impressive range of new products under
the Wacker Neuson and Kramer Allrad brands – once again underlining our com-
mitment to innovation and outstanding performance. Our program of live demos
enabled us to highlight the benefi ts of the merger. Customers were able to see for
themselves how combining products from our light and compact equipment seg-
ments enables them to further optimize their construction processes.
Judging by the number of deals our sales team closed during the trade fair, our
unique, high-quality portfolio clearly made an impression. Our sales organization
reported a 25-percent increase in orders compared with bauma 2007, which was a
boom year for the Group. Viewed in conjunction with a 60-percent or so rise in
compact orders relative to Q4 2009, this increase reaffi rms the underlying sense of
optimism among our customers.
These are extremely important results, as our business in January and February
was hit by the harsh winter in our core region of Europe, which accounts for around
75 percent of total revenue. New equipment sales and results from our rental busi-
ness in Central and Eastern Europe had a particularly dampening affect on revenue
during this period, which was refl ected in earnings for the entire quarter. Further-
more, our prediction that individual suppliers would run into diffi culties in the event
of an upturn in business also proved accurate. Delayed parts and component deli-
veries had a knock-on effect on the production and delivery timeframe for compact
equipment, resulting in additional costs for the company. We are maintaining regu-
lar contact with our business partners and suppliers in order to jointly develop for-
ward-looking solutions that refl ect the current rise in demand.
Part of our strategy here may well include providing fi nancial support for key sup-
pliers should this be necessary in order to guarantee on-time delivery of products.
Our extremely healthy fi nancial and asset position plus our continued high equity
ratio gives us the freedom to consider this option. The rise in orders has led us to
increase inventory. Working capital is therefore up relative to the end of 2009. As
expected, our net cash position was turned into a slight net fi nancial debt.
I am extremely pleased to report that we will be ending short-time working
schemes in all plants in Germany and Austria in May and that we were already able
to increase headcount at our US facilities during the fi rst quarter. The ongoing up-
ward trend in the US and in the light equipment segment confi rms the capital
Dear Ladies and Gentlemen,
Wacker Neuson SE | Q1 Report 20102
market’s forecast that the construction industry would be one of the earlier seg-
ments to show signs of recovery.
Despite fi rst quarter losses, we remain optimistic about business development for
the remainder of 2010 and will not be changing our forecast for the current fi scal
year. We expect revenue to grow by at least fi ve percent, fl anked by a rise in profi t
before interest, tax, depreciation and amortization (EBITDA). We are also looking to
return to the profi t zone at operative level. This also aligns with our prediction that
the pace of recovery in the construction and agricultural markets will pick up during
the second half of 2010 as backlogs clear – a trend that will also have a stronger
impact on our business performance. We also expect positive impetus from eco-
nomic recovery packages, primarily in the US. We will thus continue to implement
measures to launch compact equipment and establish a network of exclusive Wa-
cker Neuson dealers in the US, and plan to expand this concept to South America
and the Middle East.
All of these strategic measures remain framed by our long-term growth targets. Our
Farm Mobility concept, for example, involves distributing compact equipment for
the agricultural industry under the Weidemann brand and will open up new oppor-
tunities for the Group from 2010 onward. Acquisitions and partnerships will conti-
nue to be part of our medium-term strategy in order to strengthen our product offe-
ring and provide added value to our customers. After all, our customers are the key
to our success. It is crucial that we provide them with proof of our expertise each
and every day – something we certainly excelled at during bauma 2010.
Yours sincerely,
Dr.-Ing. Georg Sick
CEO and President
Foreword by Executive Board 3
Interim review
Economic and business trends
Global economy gradually recovering
During the fi rst quarter of 2010, the global economy
showed signs of recovery in line with expert predictions.
Economic action plans initiated by national governments
were increasingly successful in generating momentum.
The general economic trend in Germany was thus up-
ward at the beginning of 2010. The business climate was
increasingly positive, and industrial production was up
slightly at the start of the year. In addition, order intake
showed a sharp rise.
Trends in construction and agricultural
markets
Construction market affected by long winter
Following a two-year recessionary period, the global con-
struction industry evidenced increasing signs of recovery
at the start of 2010. However, this was overshadowed in Q1
by the unusually harsh winter. A joint analysis from leading
economic institutes concluded that the harsh conditions
squeezed construction industry performance by 15 percent
on average in January and February relative to average Q4
2009 fi gures, as many construction sites were forced to
cease operations temporarily. Investment picked up once
more in March, following large-scale clearance of compact
equipment inventory in the markets.
In the US, the recovery measures outlined in the national
economic action plan were increasingly effective, particu-
larly those aimed at improving national infrastructure. This
resulted in increased investment activity amongst con-
struction companies.
Brighter prospects on agricultural markets
Although the agricultural sector was hit by the economic
crisis signifi cantly later than the construction industry, it
also showed signs of recession last year. We were there-
fore particularly pleased to note the positive signs shown in
agricultural markets in the fi rst quarter of 2010. Hopes of a
milk price recovery also had a positive impact on readiness
to invest among agricultural landholders. Due to low agri-
cultural prices, investments in Q1 2010 remained focused
on improving operational effi ciencies.
Group business development
Start of construction season in March marks
upturn
Wacker Neuson Group performance was varied in the fi rst
quarter of fi scal 2010. The harsh winter in Europe, a key
region for the Group, meant that revenue for the fi rst two
months was lower than that recorded for the same period
last year. The start of the construction season in March led
to a clear upturn in demand for light and compact equip-
ment, pushing Q1 revenue up 9.5 percent to EUR 150.3
million (previous year: EUR 137.3 million). Viewed over-
all, revenue in the fi rst quarter of 2010 was slightly down
on Q4 2009 due to the poor weather conditions (Q4 2009:
EUR 154.2 million).
Following on from the signifi cantly lower level at the same
period last year (Q1 2009), new machine sales in the light
equipment segment began to pick up once more in the
period under review. In this segment, Group revenue was
up 29.7 percent in Q1 2010. The ongoing upturn in the
US, where Group revenue was up 37.8 percent in the fi rst
quarter, was a key contributing factor to the increase in
Group revenue. The recovery measures initiated under
state economic action plans seemed particularly effective
in encouraging American customers to invest, although
larger enterprises continued to proceed with caution. The
upturn in revenue confi rmed the general upward trend
in the segments listed, which had shown early signs of
revival mid-2009.
Performance in Asia was also positive in the fi rst quarter,
with Wacker Neuson’s revenue jumping by 25.7 percent in
that region.
Order intake for compact equipment for the construction
and agricultural industries was brisk in Q1 2010. As we
anticipated, the investment backlog due to the economic
crisis was easing as customers started to replace exist-
ing equipment. And – as we also expected – this upswing
revealed delivery bottlenecks among certain suppliers.
Some parts, such as steering columns and hydraulic com-
ponents used to produce wheel loaders, for example, were
not delivered on time. Similar to the downturn in the rental
business in Central and Eastern Europe, this had a nega-
tive effect on the gross profi t margin and on Q1 earnings.
The graphics and tables that follow have not been reviewed by the auditors.
They are provided for information purposes.
4 Wacker Neuson SE | Q1 Report 2010
In general, the upward trend experienced in March was
confi rmed at bauma, the world’s largest construction trade
fair, held in Munich, Germany in April. Across the entire
Group, we concentrated during the period under review on
getting ready to capitalize on the opportunities that would
accompany a rapid market recovery. We have, for example,
been gradually increasing inventory since the beginning of
the year, after drastically reducing working capital in 2009.
Reducing short-time work at all production sites in Ger-
many and Austria from around 15 percent (at December
31, 2009) to around 7 percent has allowed us to align man-
power capacity with the upturn in order intake, increasing it
relative to the end of 2009 without causing any substantial
rise in costs. Primarily in the US, where no provisions for
short-time work were available, we slightly increased our
headcount to manage the rise in incoming orders.
Despite stepping up investments in the fi rst quarter of
2010, the Group has nonetheless almost retained its net
cash position. Group fi nances and assets remain extremely
strong, with liquidity at EUR 66.3 million and an equity ratio
of 78.9 percent.
Purchase price payment for new property acquired
in Hörsching (Austria)
Last year, Wacker Neuson Linz GmbH, Linz-Leonding (Aus-
tria), affi liate of Wacker Neuson SE, acquired a property
measuring around 160,000 square meters in the district of
Hörsching (near Linz, Austria). Having paid a small deposit
last year, we capitalized the property on January 20, 2010,
following successful entry in the land registry and paid EUR
8.5 million, the remainder of the purchase price (total pur-
chase price: EUR 9.3 million). However, we have not yet
made a fi nal decision on the start of construction for a new
production plant for compact excavators, skid-steer load-
ers, and wheel and track dumpers. This will be contingent
on the general pace of economic recovery.
Suggested appropriation of profi ts
At the AGM on May 28, 2010, the Executive and Supervi-
sory Boards will propose that no dividends be distributed
for fi scal 2009 (previous year: EUR 0.19 per share) and that
the balance sheet profi t be carried forward due to the pre-
vious year’s drop in earnings and the current tentative signs
of market recovery.
Executive and Supervisory Boards
Differences of opinion within the Supervisory Board were
permanently resolved by mutual agreement during the re-
porting period. Hans Neunteufel remains Chairman of the
Wacker Neuson Supervisory Board.
bauma 2010 in April (Munich) was a resounding success for the Wacker Neuson Group. This year saw the Group present its unique, combined portfolio of high-
quality Wacker Neuson and Kramer Allrad products at the trade fair for the fi rst time. Feedback from customers was extremely upbeat, with sales up by more
than 25 percent on 2007, which was a boom year.
5Interim Review
Legal changes to the company structure
Sales affi liates in Finland and New Zealand are due to be
closed. By cooperating with renowned local sales partners,
however, Wacker Neuson will retain good access to these
markets for its products and services, while reducing ad-
ministrative costs.
Capital market communication and share trends
During the fi rst quarter of 2010, the Executive Board again
actively reported on company performance, including pre-
sentations at an investor conference in Frankfurt and at
national and international roadshows. The share price de-
veloped in line with the average SDAX during Q1. At the
beginning of 2010, the share price was listed at EUR 8.49.
On January 20, this rose to EUR 9.48 but by February 9 had
lost momentum at EUR 7.63. Over the quarter, our share
price regained ground, closing on March 31 at EUR 8.48.
Share price trends
January through May 2010
in %
WACKER NEUSON SDAX DAX
Jan. 31, 2010 Feb. 28, 2010 Mar. 31, 2010 May 3th, 2010
160
180
140
120
100
80
60
Share price trends plotted against peers
January 2009 through May 2010
in %
WACKER NEUSON MANITOU PALFINGERHAULOTTE DEUTZ
200
150
100
50
0
Jun. 30, 2009 Sep. 30, 2009 Dec. 31, 2009Mar. 3, 2009 May 3th, 2010
Profi t, fi nances and assets
The fi gures for Q1 2010 include the effects of purchase
price allocation (PPA). As of fi scal 2010, EBITDA is unaffect-
ed by PPA. It results from the merger of the former Wacker
Construction Equipment AG and Neuson Kramer Baum-
aschinen AG in fall 2007 and describes the process where
purchase costs resulting from the acquisition are allocated
to individually acquired assets, liabilities and contingent
liabilities, which are measured at fair value.
Profi t
Revenue growth in fi rst quarter
After a harsh winter in Europe – one of our key regions –
Group revenue and earnings in Q1 of fi scal 2010 were not
bolstered by a positive investment trend until March. Quar-
terly revenue rose by 9.5 percent to EUR 150.3 million (pre-
vious year: EUR 137.3 million). Adjusted to discount cur-
rency fl uctuations, this corresponds to an increase of 8.2
percent.
Sales
Q1 2010 and 2009
in € million
Q1/2010
Q1/2009 137.3
150.3
Manufacturing costs sank to EUR 104.7 million (previous
year: EUR 105.5 million).
Gross profi t on revenue increased to EUR 45.6 million (pre-
vious year: EUR 31.8 million), with the gross profi t margin
rising to 30.3 percent (previous year: 23.1 percent). This is
attributable to the increased role played by the light equip-
ment business segment and the positive impact of proac-
tive, long-term cost effi ciency measures taken the previous
year. Compared with quarters two through four in 2009, the
gross profi t margin for the reporting period refl ected the
increase in costs required to manufacture compact equip-
ment due to delivery problems among suppliers, continued
price pressure in the compact equipment segment, and re-
duced rental revenue due to the harsh weather conditions.
All of these factors combined to dampen the gross profi t
margin for this period.
6 Wacker Neuson SE | Q1 Report 2010
Further cut in selling expenses plus R&D and admi-
nistrative costs
In 2009, the Group implemented a program of measures
aimed at reducing costs and restructuring. The positive ef-
fect of these cost-cutting measures became evident in Q1
2010.
Expressed as a percentage of revenue, selling expenses,
plus R&D and administrative costs were down to 34.8 per-
cent (previous year: 41.4 percent).
Although the Group continued to intensify sales, research
and development activities, sales costs remained below the
2009 level at EUR 34.1 million (previous year: EUR 37.5 mil-
lion), with R&D costs dropping to EUR 5.2 million (previ-
ous year: EUR 6.0 million), primarily due to the reduction in
property, plant and equipment costs.
General administrative costs were reduced 2.0 percent to
EUR 13.1 million (previous year: EUR 13.3 million). Expressed
as a percentage of revenue, administrative costs amounted
to 8.7 percent (previous year: 9.7 percent).
Earnings up although dampened by one-off items
of expense
Profi t before interest, tax, depreciation and amortiza-
tion (EBITDA) rose from EUR -12.3 million to EUR 3.7 mil-
lion. The EBITDA margin was at 2.4 percent (previous year:
-9.0 percent). Depreciation and amortization amounted to
EUR 9.6 million in the fi rst quarter (previous year: EUR 10.3
million).
EBITDA
Q1 2010 and 2009
in € million
-12.3
3.7Q1/2010
Q1/2009
There was an improvement in the profi t before interest and
tax (EBIT), which rose to EUR -5.9 million (previous year:
EUR -22.6 million). However, one-off items of expense, such
as legal and consulting costs relating to disputes (which
have since been resolved) amounting to EUR 1.5 million ,
in addition to the factors mentioned above that squeezed
gross profi t, also had an effect on earnings. The EBIT mar-
gin was at -3.9 percent (previous year: -16.4 percent).
EBIT
Q1 2010 and 2009
in € million
-22.6Q1/2009
-5.9Q1/2010
Natural hedging protects the company against exchange
rate fl uctuations. In the fi rst quarter of 2010, the US dollar
steadily lost value (1 EUR = 1.37 USD; previous year: 1 EUR
= 1.29 USD).
Profi t before tax (EBT) grew to EUR -6.7 million (previous
year: EUR -23.0 million). This resulted in a tax revenue of
EUR 1.0 million (previous year: EUR 6.4 million). The tax
rate decreased from 27.9 percent to 15.4 percent, as tax
loss carry-forwards were not always recognized in full as
liabilities on the balance sheet
At EUR -5.7 million, profi t for the period was clearly above
earnings for the same period last year (EUR -16.6 million).
Based on a weighted average number of ordinary shares in
circulation during the period of 70.14 million, earnings per
share totaled EUR -0.08 (previous year: EUR -0.24).
Finances
Company remains on stable fi nancial footing
Our aim in 2010 is to again fund day-to-day operations with
operative cash fl ow as far as possible. We plan to invest
any fi nancial surplus in liquid, secure instruments capitaliz-
ing on the prevailing interest rates and to use such funds to
fi nance the future growth of the company.
Cash fl ow from operating activities reached EUR -2.3 mil-
lion at the end of the fi rst quarter (previous year: EUR 3.8
million).
Cash fl ow from investment activities refl ected renewed in-
vestment projects, which we had drastically cut back in
2009 and partially deferred until 2010. In the fi rst three
months of fi scal 2010, we invested a total of EUR 23.0 mil-
lion in property, plant and equipment (previous year: EUR
7.3 million). This was channeled in part into construction of
our new Research and Development Center and company
headquarters in Munich, Germany, as well as into expan-
sion of our rental business in Central and Eastern Europe,
and the purchase of a tract of land in Hörsching (Austria).
Cash fl ow from investment activities came to EUR -25.1 mil-
lion (previous year: EUR -8.3 million).
7Interim Review
Cash fl ow from fi nancing activities totaled EUR 7.5 million
(previous year: EUR 14.0 million), largely attributable to the
partial fi nancing of a tract of land in Hörsching (Austria).
Free cash fl ow amounted to EUR -27.4 million (previous
year: EUR -4.5 million).
Free cash fl ow
in € K Q1/2010 Q1/2009
Cash fl ow from operating
activities - 2,300 3,812
Cash fl ow from investment activities - 25,135 - 8,344
Free cash fl ow - 27,435 - 4,532
Comfortable liquid reserves
Available liquid assets combined with credit lines extended
to Wacker Neuson by credit institutes are suffi cient to meet
our liquidity needs. At the closing date, less than half of all
credit lines had been drawn. The Group had liquid assets in
the amount of EUR 66.3 million at the closing date (Decem-
ber 31, 2009: EUR 85.0 million).
Effi cient management of working capital
During the fi rst quarter of 2010, we succeeded in decreas-
ing working capital by 7.0 percent to EUR 233.1 million
(December 31, 2009: EUR 217.9 million). Through focused
measures to build up inventory, this increased to EUR 157.8
million (at December 31, 2009: EUR 148.3 million). Trade
payables rose to EUR 40.8 million (December 31, 2009:
EUR 21.3 million). Trade receivables reached EUR 116.2
million (December 31, 2009: EUR 90.8 million). It is our on-
going aim to maintain a healthy balance between working
capital and revenue.
Assets
Assets in strong position with continued high
equity ratio
At the close of the fi rst quarter, the balance sheet again
refl ects the strong position of Group assets. After the fi rst
three months of the year, the balance sheet total increased
to EUR 1,007.5 million (December 31, 2009: EUR 971.7 mil-
lion). Assets rose to EUR 615.7 million (December 31, 2009:
EUR 597.8 million), primarily due to the purchase of a tract
of land. Due to an increase in production levels, the value
of fi nished products rose to EUR 107.6 million (December
31, 2009: EUR 107.1 million). At EUR 354.9 million, current
assets were up due to a concerted effort to increase inven-
tory (December 31, 2009: EUR 339.0 million).
Equity amounted to EUR 795.1 million (December 31, 2009:
EUR 791.5 million). The equity ratio was 78.9 percent (De-
cember 31, 2009: 81.5 percent), and, in our view, is still at a
high level for the industry. The company’s share capital re-
mained unchanged at EUR 70.14 million.
Total non-current liabilities rose 8.5 percent to EUR 96.9
million (December 31, 2009: EUR 89.3 million). Total current
liabilities were posted at EUR 115.6 million (December 31,
2009: EUR 90.9 million).
At the close of the fi rst quarter, net fi nancial debt amounted
to EUR 2.0 million (December 31, 2009: net cash position of
EUR 24.9 million).
Net fi nancial debt
in € K Mar. 31, 2010 Dec. 31, 2009
Non-current liabilities - 40,900 - 33,583
Current borrowings from banks - 15,377 - 14,889
Current portion of non-current
liabilities - 12,037 - 11,698
Cash and cash equivalents 66,299 85,024
Total 2,015 - 24,854
Segment reporting
With its wide range of products and services, the Wack-
er Neuson Group caters to construction companies and
to dealers, rental organizations and importers across the
globe.
Our segment reporting provides an overview of business
development by region (Europe, Americas and Asia) and re-
ports revenue by business segment (light equipment, com-
pact equipment and services).
Revenue was up in all regions, especially the Americas and
Asia. Revenue also increased in the light equipment seg-
ment. Order intake was up signifi cantly in the compact
equipment segment.
8 Wacker Neuson SE | Q1 Report 2010
Results for Europe, the Americas and Asia
Sales distribution*
in % (previous year)
Asia
4.9 (4.3)
Europe
73.2 (78.4)
Americas
21.9 (17.3)
Services
24.6 (27.5)
Compact Equipment
36.3 (39.5)
Light Equipment
39.1 (33.0)
Sales by region Sales by business
* Differences attributable to rounding.
Harsh winter in Europe
The region Europe suffered a particularly harsh winter,
which meant that the market only started to pick up in
March. However, at 73.2 percent (previous year: 78.4 per-
cent), Europe continued to account for the majority of rev-
enue. The fi rst three months of fi scal 2010 saw the region’s
revenue rise 2.2 percent to EUR 110.0 million (previous
year: EUR 107.6 million). Profi t before interest and tax (EBIT)
increased from EUR -15.3 million to EUR -5.7 million.
Europe
Q1 2010 and 2009
in € million
Sales
107.6
110.0
Q1/2010
Q1/2009
EBIT
-15.3
-5.7
Q1/2010
Q1/2009
The upswing in construction activity was felt across the en-
tire region and was particularly apparent in France, Spain,
the UK, Sweden, Norway and Finland. The Netherlands,
Denmark and Italy were the only countries where develop-
ment remained below the previous year’s level.
Signifi cant growth in the Americas
Revenue in the Americas was up 38.4 percent on the pre-
vious year, reaching EUR 33.0 million (previous year: EUR
23.8 million). Profi t before interest and tax (EBIT) rose from
EUR -5.8 million to EUR 1.3 million. This region’s share of
total revenue rose from 17.3 percent to 21.9 percent. Dis-
counting exchange rate fl uctuations, revenue in the region
increased by 40.0 percent.
Americas
Q1 2010 and 2009
in € million
Sales
23.8
33.0Q1/2010
Q1/2009
EBIT
-5.8
1.3Q1/2010
Q1/2009
Results for the fi rst quarter of 2010 thus confi rm that the
positive trend we fi rst reported in mid-2009 has continued
and is gaining momentum. Over the past two years, busi-
ness in the US had been shaped by negative market condi-
tions and a sharp decline in investment in residential, non-
residential and underground construction. In local currency
(US dollar), Q1 revenue generated by our affi liate Wacker
Neuson Corporation was up 45.9 percent on the previous
year’s level. Business in Canada, Mexico and South Amer-
ica also profi ted from the upbeat market. Due to a rise in
order intake, we increased headcount slightly in the US in
March.
Signifi cant revenue increase in Asia
In the Asia region, revenue during the fi rst quarter of 2010
rose 25.7 percent relative to the same period last year, up
from EUR 5.9 million to EUR 7.4 million. Profi t before inter-
est and tax (EBIT) totaled EUR 0.05 million (previous year:
EUR 0.1 million). This region’s share of total revenue rose
from 4.3 percent to 4.9 percent.
9Interim Review
Asia
Q1 2010 and 2009
in € million
Sales
5.9
7.4
Q1/2010
Q1/2009
EBIT
0.1
0.05
Q1/2010
Q1/2009
Overall, construction markets showed signs of recovery in
the region Asia, especially in Australia and New Zealand.
Our business in Asia profi ted from the large number of in-
frastructure measures driving the expansion of road and
rail networks. Light equipment from the demolition fi eld
– above all gasoline breakers – was in particular demand in
China for rail track construction.
Results for the light equipment, compact
equipment and services segments
Sales by business segment
in € K
Jan. 1 –
Mar. 31, 2010
Jan. 1 –
Mar. 31, 2009
Segment revenue from
external customers
Light Equipment 59,286 45,700
Compact Equipment 54,956 54,672
Services 37,222 38,131
151,464 138,503
Less cash discounts -1,147 -1,225
Total 150,317 137,278
Sharp rise in revenue for light equipment
The light equipment business segment covers the Wacker
Neuson Group’s activities within the four strategic business
fi elds of concrete technology, soil and asphalt compaction,
demolition, and utility. This segment has been impacted by
the crisis since the fall of 2007, where the effects were fi rst
felt in our US market. We are pleased to report that revenue
before discounts in this segment rose 29.7 percent to EUR
59.3 million during the fi rst three months of fi scal 2010 (pre-
vious year: EUR 45.7 million). This was particularly fuelled
by increased activity as project backlogs started to clear.
Although the starting baseline for this growth had dropped
dramatically, it nevertheless confi rms that demand for our
equipment is rising – a trend that we fi rst noted in mid-
2009. This segment’s share in total revenue was 39.1 per-
cent (previous year: 33.0 percent).
The winter weather meant that our surface heaters from the
utility segment were particularly well received by our cus-
tomers. These products are manufactured in the US and
also distributed and rented in Europe.
We continued to launch new products from this segment
during Q1, including the DPU 130, the most powerful vibra-
tory plate on the market. This innovative machine can easily
do the job of a seven-ton roller, thus making it an extremely
cost-effective option.
EuroTest award for
WACKER NEUSON rebar tier
In April 2010, BG
Bau, the statutory
accident insurance
and prevention
association for the
German construc-
tion industry, has
awarded the EuroTest prize to Wacker
Neuson’s DF 16 rebar tier in acknow-
ledgement of its outstanding contri-
bution to health and safety. According
to BG Bau, the DF 16 has made an
exemplary improvement to health and
safety in the workplace.
10 Wacker Neuson SE | Q1 Report 2010
Increased order intake for compact equipment
In the fi rst three months of 2010, revenue before discounts
in the compact equipment segment (which covers the man-
ufacture and sale of compact equipment up to a weight of
around 14 tons) rose slightly from EUR 54.7 million to EUR
55.0 million. This segment’s share in total revenue was 36.3
percent (previous year: 39.5 percent).
Accumulated orders rose steeply to outperform the fourth
quarter of 2009 by 60 percent. In our view, this was primar-
ily fuelled by increased demand from our customers and
was only partly due to a build-up of stock. We expect the
full impact to be recognized in revenue and earnings over
the next two quarters, especially bearing in mind that Q1
was also subject to delivery delays resulting from delivery
diffi culties among our suppliers. Parts such as steering col-
umns and hydraulic components for wheel loaders were
delivered late in this period. Relative to the same quarter
last year, accumulated orders were up by over 100 percent.
The company continued to implement measures aimed at
launching compact equipment via the global sales and ser-
vice network. This included introducing selected products
in Italy and Sweden.
Price erosion did not increase in the fi rst quarter, but the
compact equipment segment continues to feel the effects
of the price squeeze. During Q1, we continued to success-
fully implement special fi nancing options for customers.
The fi rst quarter saw us launch a range of new compact
machines that provide signifi cant added value for cus-
tomers. These include fi ve wheel loaders, one tele wheel
loader, two compact telescopic handlers under the Kramer
Allrad brand and the 14504 compact track excavator from
Wacker Neuson – the most powerful machine in the 14-ton
class to date.
Following a downturn in investment during the second half
of 2009, demand for agricultural products has again picked
up. Order intake has also risen in this segment, fuelled also
by new product launches in fall 2009. Compact equipment
for the agricultural sector accounted for 15.2 percent of
revenue (previous year: 19.7 percent).
Long winter dampens rental business in services
segment
Revenue before discounts in the services segment, which
comprises the business fi elds rental (Central and East-
Wacker Neuson just launched its DPU 130, the world’s most powerful and
modern vibratory plate. Featuring an entirely new base plate design with two
base plates and separate, fully hydraulic exciters, the DPU 130 is extremely
maneuverable for its size. The result is a plate with unique handling fl exibility
that allows it to turn corners and remain stationary, for example. It also ena-
bles operators to continuously adjust speed without impacting the
machine’s exceptional responsiveness
In its range of telehandlers, Kramer just launched its new Allrad 2506 tele-
handler on bauma 2010. With its 2506 telehandler, Kramer has a machine
with such compact dimensions that even narrow passageways are child‘s
play for this Kramer telehandler. With a maximum lift height of 5.75 m, the
68 hp workhorse will prove an attractive option in many market segments.
The new machine is a direct answer to concrete customer needs. The trade
fair visitors were delighted.
11Interim Review
ern Europe) and after-market (repair and maintenance), fell
slightly during the fi rst quarter. Figures here dropped mar-
ginally by 2.4 percent in the period under review to EUR
37.2 million (previous year: EUR 38.1 million). This segment’s
share in total revenue was thus 24.6 percent (previous year:
27.5 percent).
Revenue in the after-market business fi eld (which covers
the traditional repair and spare parts business) remained
more or less level with the same period last year at EUR
28.4 million (previous year: EUR 28.3 million). We increased
spare parts prices by three percent on April 1, 2010.
Revenue generated by the rental business in Central and
Eastern Europe fell 10.2 percent from EUR 9.9 million to
EUR 8.9 million, primarily due to a delayed start to the con-
struction season as a result of the harsh winter in Europe.
Other factors that impacted on results
Rise in demand leads to improved utilization of
production capacity
The rise in demand for our products resulted in higher out-
put at our manufacturing facilities. We have maintained our
24- to 48-hour delivery timeframe for products in the light
equipment business segment. Delivery times for compact
equipment range between four to fi ve months.
Reduction of short-time work
At March 31, 2010, Group headcount totaled 3,090 (same
period last year: 3,375; December 31, 2009: 3,059). This
fi gure does not refl ect the actual number of employees, but
the number of positions as calculated on a full-time basis.
The drop in headcount in comparison to the same quar-
ter last year is due to the measures implemented in 2009
to reduce manpower capacity. The Group was able to uti-
lize fl exitime options and reduce short-time work in or-
der to ramp up production. As a result, only around seven
percent of positions at our production facilities worldwide
were affected by short-time work (previous year: 23 per-
cent; December 31, 2009: 15 percent).
Price of raw materials rises
The price of raw materials, especially steel, increased.
However, this did not have a signifi cant impact on the com-
pany’s manufacturing costs due to long-term contracts.
Preparations for bauma, the world’s largest
construction machine trade fair
During the fi rst quarter of 2010, the Group was busy pre-
paring for bauma, the most important construction equip-
ment trade fair worldwide. Wacker Neuson showcased a
range of innovative products at the exhibition, which was
held in Munich in April 2010 and proved a great success for
the company.
Group maintains research and development level
Research and development costs in the fi rst quarter
amounted to EUR 5.2 million (previous year: EUR 6.0 mil-
lion). The research and development ratio was at 3.4 per-
cent (previous year: 4.3 percent).
Changes to the opportunity and risk situation
In the fi rst quarter of 2010, the Wacker Neuson Group con-
tinued to implement its risk management system as a key
steering tool for business decisions and processes. This
system covers planning for each of the core business seg-
ments and comprehensive Group reporting covering all
business processes and affi liates. These reports are regu-
larly analyzed, discussed and evaluated and made avail-
able to all decision-makers. The system also includes
process defi nitions for all business segments and Group
auditing. The internal controlling and risk management
system is described in detail in the consolidated fi nancial
statements for 2009.
The company has identifi ed the following risks to the
Wacker Neuson Group as of March 31, 2010 that deviate
from the 2009 consolidated fi nancial statements:
From the company’s perspective, there is an increased risk
of losing suppliers due to insolvency. There is also an in-
creased risk of delayed deliveries or fi nancial problems on
the part of suppliers. This may affect our ability to deliver
products on time. Supply bottlenecks may also result in in-
creased prices. We are counteracting these risks by main-
taining especially close ties with our suppliers as well as
involving them more in the planning process.
We are not currently aware of any other signifi cant risks to
the Wacker Neuson Group. We have not identifi ed any in-
dividual or collective risks to our continued existence as a
going concern that might negatively affect individual com-
panies within the Group or the Group as a whole in the
foreseeable future.
Supplementary report
The Wacker Neuson Group presented its portfolio at
bauma, the world’s largest construction machine trade fair
held in April 2010 in Munich. The high-quality, innovative
products distributed under the Wacker Neuson and Kramer
Allrad brands were extremely well received by our custom-
12 Wacker Neuson SE | Q1 Report 2010
ers. The large number of new and next-generation prod-
ucts refl ects the forward-looking, sustainable focus of our
development activities. The number of contracts concluded
this year was up signifi cantly on fi gures for the last bau-
ma in 2007, which was a boom year. Our direct sales team
closed 25 percent more deals. This fi gure does not include
the results achieved by our dealers. The scheduled costs
of around EUR 2.0 million will be recognized in the second
quarter.
There have been no signifi cant events since the reporting
date that could have an impact on future Wacker Neuson
Group business development.
Outlook
Experts predict upturn in 2010
According to experts, prospects for the global economy and
worldwide trade are more positive for the current fi scal year.
Overall current predictions indicate that dynamic develop-
ments in countries such as India and China will help the
global economy overcome the fi nancial and economic crisis.
Prospects for economic recovery over the current fi scal
year are good in almost all EU states. Experts predict GDP
for Western and Eastern Europe to improve slightly. Howev-
er, stringent lending policies will continue to dampen com-
panies’ propensity to invest. Growth is also forecast for the
Middle East and Africa.
Experts predict a 1.7 percent rise in GDP for Germany.
However, the crisis is expected to squeeze the revenue and
profi t of many companies, which will also compound the
credit crunch here. The number of insolvencies may also
rise. According to economic institutes, a great deal of work
still has to be done by politicians and the fi nancial commu-
nity to put the overall economy back on the path to sustain-
able recovery. In particular, the danger of interest rates and
prices rising too quickly remains a risk here.
Positive outlook for the construction and
agricultural industries
The fi rst signs of recovery are also starting to show in the
global construction industry. This trend was also visible at
bauma, the world’s largest construction machine trade fair,
which was held in Munich in April of this year.
Stabilization of the US property market remains a key pre-
requisite for recovery of the American construction indus-
try. According to the Association of Equipment Manufac-
turers (AEM), investment in private construction is set to
increase in 2010.
Infrastructure projects are scheduled in many European
countries, with investment funds earmarked for the expan-
sion of road, rail, transport and telecommunications net-
works. Government schemes aimed at promoting infra-
structure and public education projects, which were not
fully exploited by the industry in 2009, will also provide fur-
ther impetus here. We regard Eastern Europe as a promis-
ing growth market for the construction industry, due on the
one hand to EU subsidies and, on the other, to public funds
aimed at bolstering infrastructure (road, rail and telecom-
munications networks). We also identify potential in our
strategy to launch compact equipment in countries where
we have not sold this equipment in the past, as well as in
the expansion of our rental business in Central and Eastern
Europe. Construction activity is expected to increase signif-
icantly during the second quarter, particularly as the back-
log of construction projects delayed by the weather clears.
According to the German Engineering Federation (VDMA),
construction machine manufacturers will see revenue rise
this year by fi ve percent.
The agricultural sector is continuing to move toward larger
holdings in Europe. This is fuelling a rise in rationalization
investments, fl anked by EU agricultural subsidies. Experts
continue to predict an increase in the mechanization of land
cultivation. Improved prospects for the agricultural sector
are closely linked to global economic recovery. Growth in
Asia, for example, is creating opportunities for increased
agricultural sales, also on international markets. The rise
in milk pricing is another factor behind the positive outlook
for the agricultural sector. According to one survey, around
60 percent of dairy farmers looking to make investments
are planning on expanding their operations. This is in turn
fuelling long-term demand for agricultural equipment on a
global scale.
Positive business development expected for 2010
At present, the Wacker Neuson Group expects the con-
struction and agricultural sectors to remain on the path to
recovery and is even confi dent that this trend could further
improve during the second half of the year. We also expect
further positive impetus during the current fi scal year from
investment backlogs plus extensive economic recovery
packages, primarily in the US. Despite the upturn in busi-
ness in March as well as an increase in orders for compact
equipment and encouraging feedback from bauma 2010,
we do not yet intend to change our forecast of an over-
all growth in revenue of at least fi ve percent for the entire
year. We expect profi t before interest, tax, depreciation and
amortization (EBITDA) to rise and are looking to return to
the profi t zone at operative level.
13Interim Review
We are proactively implementing measures to counter de-
livery problems on the part of our suppliers. We are main-
taining regular contact with our business partners and sup-
pliers in order to jointly develop forward-looking solutions
that refl ect the current rise in demand. We have not ruled
out providing fi nancial support for key suppliers should this
be required to guarantee on-time delivery of products.
Although we predict that the current upturn in business in
the US will continue, we do not expect larger rental com-
panies to make major investments until the second half of
the year at the earliest – this may even extend into 2011.
We therefore intend to continue implementing measures for
launching compact equipment in the US market and estab-
lishing a network of exclusive Wacker Neuson dealers. We
will also be expanding this concept to South America and
the Middle East.
Under the umbrella of our Farm Mobility concept, we will
be launching machines from our compact equipment range
in the agricultural sector under the Weidemann brand. This
move will also open up new growth opportunities. The pro-
duction plant in Gotha is set to become a European used
equipment center and a repairs hub for all Group-brand
products.
We expect the measures we implemented last year to have
a further impact on our cost structure during the course of
2010. We intend to fl exibly adjust manpower capacity to
meet the rise in orders and therefore increase HR capacity
slightly. We are looking to cancel all remaining short-time
work schemes in May 2010.
The Wacker Neuson Group is fi nancially stable with liquid-
ity of EUR 66.3 million and an equity ratio of 78.9 percent.
We again aim to fi nance day-to-day operations in the cur-
rent fi scal year with operative cash fl ow.
Acquisitions and partnerships will continue to be part of
our medium-term strategy insofar as these strengthen our
product offering and provide added value to our customers
or enable us to expand our international footprint.
Munich, May 7, 2010
Wacker Neuson SE
The Executive Board
Dr.-Ing. Georg Sick
(CEO and President)
Martin Lehner
(Deputy CEO)
Günther C. Binder
Richard Mayer
Werner Schwind
14 Wacker Neuson SE | Q1 Report 2010
Income StatementJanuary 1 through March 31
in € K
Jan. 1 –
Mar. 31, .2010
Jan. 1–
Mar. 31, 2009
Revenue 150,317 137,278
Cost of sales - 104,734 - 105,513
Gross profi t 45,583 31,765
Sales and service expenses - 34,086 - 37,463
Research and development expenses - 5,161 - 5,965
General administrative expenses - 13,075 - 13,338
Other income 1,901 4,552
Other expenses - 1,085 - 2,102
Profi t before interest and tax (EBIT) - 5,923 - 22,551
Financial result - 774 - 422
Profi t before tax (EBT) - 6,697 - 22,973
Taxes on income 1,028 6,408
Profi t before minority interests - 5,669 - 16,565
Minority interests - 53 - 46
Profi t for the period - 5,722 - 16,611
Earnings per share in EUR - 0,08 - 0,24
15Interim Review Income Statement
Total profi t/loss for the quarterJanuary 1 through March 31
in € K
Jan. 1 –
Mar. 31, 2010
Jan. 1 –
Mar. 31, 2009
Profi t/loss for the quarter - 5,669 - 16,565
Items not recognized in profi t/loss for the period:
Exchange differences 9,361 5,477
Securing cash fl ows:
Losses incurred in the current period - 224 - 1,002
Tax effects from items in total profi t/loss for the period 72 320
Items not recognized in profi t/loss after tax for the period 9,209 4,795
Total profi t/loss after tax for the period 3,540 - 11,770
Of which are attributable to:
- Shareholders in the parent company 3,487 - 11,816
- Minority interests 53 46
Total profi t/loss after tax for the period 3,540 - 11,770
16 Wacker Neuson SE | Q1 Report 2010
Equity and liabilities
Subscribed capital 70,140 70,140
Other reserves 595,117 585,908
Retained earnings 127,279 133,001
Equity before minority interests 792,536 789,049
Minority interests 2,526 2,473
Total equity 795,062 791,522
Long-term borrowings 40,900 33,583
Deferred taxes 25,499 25,530
Long-term provisions 30,466 30,167
Total non-current liabilities 96,865 89,280
Trade payables 40,848 21,251
Short-term borrowings from banks 15,377 14,889
Current portion of long-term borrowings 12,037 11,698
Short-term provisions 10,536 13,583
Current tax payable 1,253 413
Other current liabilities 35,524 29,102
Total current liabilities 115,575 90,936
Total liabilities 1,007,502 971,738
Balance SheetAs at March 31
in € K March 31, 2010 December 31, 2009
Assets
Property, plant and equipment 284,156 267,408
Investment property 2,557 2,618
Goodwill 236,432 236,016
Intangible assets 88,391 87,624
Other investments 4,144 4,144
Deferred taxes 16,003 13,344
Other non-current assets 20,870 21,542
Total non-current assets 652,553 632,696
Inventories 157,784 148,301
Trade receivables 116,168 90,837
Current tax receivables 2,472 6,165
Other current assets 12,226 8,715
Cash and cash equivalents 66,299 85,024
Total current assets 354,949 339,042
Total assets 1,007,502 971,738
17Total profi t/loss for the quarter Balance Sheet
Statement of Changes in EquityAs at March 31
in € K
Subscri-
bed
capital
Capital
reserves
Exchange
diffe-
rences
Other
neutral
changes
Retained
earnings
Equity
before
minority
interests
Minority
interests
Total
equity
Balance at
December 31, 2008 70,140 618,397 - 36,914 1,033 256,432 909,088 2,731 911,819
Total profi t for the period 0 0 5,477 - 682 - 16,611 - 11,816 46 - 11,770
Balance at March 31, 2009 70,140 618,397 - 31,437 351 239,821 897,272 2,777 900,049
Balance at Dezember 31, 2009 70,140 618,661 - 32,495 - 258 133,001 789,049 2,473 791,522
Total profi t for the period 0 0 9,361 - 152 - 5,722 3,487 53 3,540
Balance at March 31, 2010 70,140 618,661 - 23,134 - 410 127,279 792,536 2,526 795,062
18 Wacker Neuson SE | Q1 Report 2010
Cash Flow StatementJanuary 1 through March 31
in € K
Jan. 1 –
March 31, 2010
Jan. 1 –
March 31, 2009
EBT - 6,697 - 22,973
Depreciation and amortization 9,594 10,260
Foreign exchange result 4,102 3,016
Gains/losses from sale of intangible assets and property, plant and equipment 273 - 20
Book value from the disposal of rental equipment 1,441 1,502
Gains/losses from derivates (cash fl ow hedging) - 152 - 682
Financial result 774 422
Changes in inventories - 9,483 4,811
Changes in trade receivables and other assets - 27,526 9,081
Changes in provisions - 2,748 2,992
Changes in trade payables and other liabilities 26,980 - 4,514
Interest paid - 1,087 - 1,396
Income tax received 1,889 415
Interest received 340 898
Cash fl ow from operating activities - 2,300 3,812
Purchase of property, plant and equipment - 22,966 - 7,251
Purchase of intangible assets - 2,257 - 1,262
Proceeds from the sale of property, plant and equipment and intangible assets 88 169
Cash fl ow from investing activities - 25,135 - 8,344
Proceeds/income from short-term borrowings 7,493 14,041
Cash fl ow from fi nancing activities 7,493 14,041
Increase/decrease in cash and cash equivalents - 19,942 9,509
Effect of exchange rates on cash and cash equivalents 1,217 727
Change in cash and cash equivalents - 18,725 10,236
Cash and cash equivalents at beginning of period 85,024 37,339
Cash and cash equivalents at end of period 66,299 47,575
19Statement of Changes in Equity Cash Flow Statement
SegmentationJanuary 1 through March 31
Primary segmentation (geographical segments)
in € K Europe Americas Asia Consolidation Group
Q1 2010
Segment revenue
Total external sales 159,846 50,535 9,854
Less intrasegment sales - 39,612 - 8,527 - 338
120,234 42,008 9,516
Intersegment sales - 10,257 - 9,051 - 2,133
Total 109,977 32,957 7,383 0 150,317
EBIT - 5,747 1,305 - 53 - 1,428 - 5,923
EBITDA 2,589 2,416 99 - 1,433 3,671
Net fi nancial debt - 4,783 11,892 - 3,057 - 2,037 2,015
Working capital 162,006 70,594 12,214 - 11,710 233,104
Q1 2009
Segment revenue
Total external sales 155,716 34,731 7,750
Less intrasegment sales - 40,333 - 4,399 - 194
115,383 30,332 7,556
Intersegment sales - 7,798 - 6,515 - 1,680
Total 107,585 23,817 5,876 0 137,278
EBIT - 15,321 - 5,839 56 - 1,447 - 22,551
EBITDA - 6,483 - 4,582 228 - 1,454 - 12,291
Net fi nancial debt 45,400 22,292 3,009 - 8,000 62,701
Working capital 210,623 74,924 12,754 0 298,301
Sales by business segment
in € K
Jan. 1 –
March 31, 2010
Jan. 1 –
March 31, 2009
Segment revenue from external customers
Light Equipment 59,286 45,700
Compact Equipment 54,956 54,672
Services 37,222 38,131
151,464 138,503
Less cash discounts -1,147 -1,225
Total 150,317 137,278
20 Wacker Neuson SE | Q1 Report 2010
Accounting rules
The Wacker Neuson SE consolidated interim fi nancial state-
ments to March 31, 2010 have been prepared in accordance
with International Financial Reporting Standards (IFRS) and
their interpretation as valid on the reporting date and applicable
to the EU. The statements adhere to International Accounting
Standard (IAS) 34 for condensed statements.
All interim fi nancial statements of the domestic and foreign com-
panies included in the consolidated statements were prepared
according to the standardized Wacker Neuson SE accounting
principles and valuation methods.
As an information instrument, this interim report builds on the
consolidated fi nancial statements. We therefore refer to the
notes to the consolidated statements of December 31, 2009.
The comments there also apply to the quarter and half-year
statements for fi scal 2010, unless explicitly stated otherwise.
The general accounting principles and valuation methods used
for the fi scal 2009 consolidated statements have also been ap-
plied to these interim fi nancial statements.
Legal changes to company structure
The Finnish affi liate Wacker Neuson Oy in Kerava is set to close
in fi scal 2010.
The New Zealand affi liate Wacker Neuson Ltd. in Auckland is
also set to close during the course of fi scal 2010.
These scheduled closures will not have a signifi cant impact on
the Group’s assets, liabilities, fi nancial position and profi t/loss.
Seasonal fl uctuations
The annual analysis of the distribution of consolidated revenue
reinforces the assumption that seasonal fl uctuations in the
Group only have a minor impact.
The quarterly distribution of consolidated revenue from fi scal
2006 through 2009 was as follows:
in % 2009 2008 2007 2006
Q1 23 26 24 24
Q2 26 28 28 27
Q3 25 24 25 25
Q4 26 22 23 24
Here it must be noted that revenue from the Neuson Kramer
subgroup, which merged with Wacker on October 1, 2007, is
not included in the 2007 and 2006 fi gures. However, it is inclu-
ded in the fi gures for 2008 and 2009.
Earnings per share
In accordance with International Accounting Standard (IAS) 33,
earnings per share are calculated by dividing the consolidated
earnings by the average number of shares. There was no share
dilution effect in the reporting periods shown.
2010 2009
Q1
Quarterly earnings attributable to
shareholders in € K - 5,722 - 16,611
Weighted average number of
ordinary shares in circulation
during the period in thousands 70,140 70,140
Earnings per share in EUR - 0.08 - 0.24
Selected explanatory notes to the interim fi nancial statements for the fi rst quarter 2010
Segmentation Selected Explanatory Notes 2121
Important events
At the AGM on May 28, 2010, the Executive and Supervisory
Boards of Wacker Neuson SE will propose that no dividend be
paid out for fi scal 2010.
The differences of opinion within the Supervisory Board have
now been permanently settled by mutual consent. Mr. Neunteufel
remains Chairman of the Supervisory Board of the company.
A provision of EUR 1.7 million has been posted for legal and
consultation costs in connection with this dispute (December
31, 2009: EUR 0.2 million).
Events since the interim statements
reporting date
There have been no further signifi cant events since the interim
statements reporting date.
Munich, May 7, 2010
The Executive Board
Dr.-Ing. Georg Sick
(CEO and President)
Martin Lehner Richard Mayer
(Deputy CEO)
Günther Binder Werner Schwind
22 Wacker Neuson SE | Q1 Report 201022 Wacker Neuson SE | Q1 Report 2010
To Wacker Neuson SE, Munich, Germany
„We have reviewed the condensed consolidated interim fi nancial
statements of the Wacker Neuson SE, comprising the con-
densed income statement, the condensed statement of compre-
hensive income, the condensed balance sheet, the condensed
cash fl ow statement, the condensed statement of changes in
equity as well as selected explanatory notes, together with the
interim group management report of the Wacker Neuson SE for
the period from January 1 to March 31, 2010 that are compo-
nents of the quarterly fi nancial report pursuant to § 37x Abs. 3
WpHG (German Securities Trading Act). The preparation of the
condensed consolidated interim fi nancial statements in accor-
dance with those IFRS applicable to interim fi nancial reporting
as adopted by the EU, and of the interim group management
report in accordance with the requirements of the WpHG appli-
cable to interim group management report, is the responsibility
of the Company´s management. Our responsibility is to issue a
report on the condensed consolidated interim fi nancial state-
ments and on the interim group management report based on
our review.
We performed our review of the condensed consolidated interim
fi nancial statements and the interim group management report
in accordance with German generally accepted standards for
the review of fi nancial statements promulgated by the Institut
der Wirtschaftsprüfer (IDW). Those standards require that we
plan and perform the review so that we can preclude through
critical evaluation, with a certain level of assurance, that the
condensed consolidated interim fi nancial statements have not
been prepared, in material aspects, in accordance with the IFRS
applicable to interim fi nancial reporting as adopted by the EU,
and that the interim group management report has not been
prepared, in material aspects, in accordance with the require-
ments of the WpHG applicable to interim group management
reports. A review is limited primarily to inquiries of company
employees and analytical assessments and therefore does not
provide the assurance attainable in a fi nancial statement audit.
Since, in accordance with our engagement, we have not perfor-
med a fi nancial statement audit, we cannot issue an auditor´s
report.
Review Report by the Auditors
Based on our review, no matters have come to our attention that
cause us to presume that the condensed consolidated interim
fi nancial statements have not been prepared, in all material
respects, in accordance with the IFRS applicable to interim
fi nancial reporting as adopted by the EU, or that the interim
group management report has not been prepared, in all material
respects, in accordance with the requirements of the WpHG
applicable to interim group management reports.“
Munich, May 7, 2010
Rölfs WP Partner AG
Wirtschaftsprüfungsgesellschaft
Reinke Jagosch
Wirtschaftsprüfer
(Public Auditor)
Wirtschaftsprüfer
(Public Auditor)
Selected Explanatory Notes Review Report by the Auditors 23
in T€ Jan.1– Mar. 31, 2010 PPA Jan.1– Mar. 31, 2010
Wacker Neuson without PPA1 with PPA1
Revenue 150,317 150,317
Cost of sales - 104,731 - 3 - 104,734
Gross profi t 45,586 - 3 45,583
Sales and service expenses - 34,086 - 34,086
Research and development expenses - 4,371 - 790 - 5,161
General administrative expenses - 12,991 - 84 - 13,075
Other income 1,901 1,901
Other expenses - 1,085 - 1,085
Profi t before interest and tax (EBIT) - 5,046 - 877 - 5,923
Financial result - 696 - 78 - 774
Profi t before tax (EBT) - 5,742 - 955 - 6,697
Taxes on income 775 253 1,028
Profi t before discontinued operations, minority interests - 4,967 - 702 - 5,669
Minority interests - 67 14 - 53
Profi t for the period - 5,033 - 689 - 5,722
Profi t before interest and tax (EBIT) - 5,046 - 877 - 5,923
Depreciation and amortization 8,717 877 9,594
EBITDA 3,671 0 3,671
1 Incl. PPA = Purchase price allocation. Purchase price allocation describes the process where purchase costs resulting from acquisitions are allocated to individually
acquired assets, liabilities and contingent liabilities, which are measured at fair value.
Income StatementEffects from Purchase Price Allocation (PPA) 1
24 Wacker Neuson SE | Q1 Report 201024 Wacker Neuson SE | Q1 Report 2010
Financial Calendar/IR Contact
Kontakt
Wacker Neuson SE
Ressort Investor Relations
Preussenstrasse 41
80809 Munich
Germany
Phone +49 - (0)89 - 354 02 - 173
Fax +49 - (0)89 - 354 02 - 203
www.wackerneuson.com
Publishing Details
Issued by:
Wacker Neuson SE,
Ressort Investor Relations
Concept & Design:
Kirchhoff Consult AG, Munich, Germany
Content:
Wacker Neuson SE
Financial Calendar 2010
May 28 AGM, Munich, Germany
August 13 Publication of half-year report 2010
November 12 Publication of nine-month 2010
Disclaimer
This three-month report contains forward-looking statements which are based on the current estimates and
assumptions by the corporate management of Wacker Neuson SE. Forward-looking statements are cha-
racterized 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 anyway guaranteeing that those
expectations will turn out to be accurate. Future performance and the results actually achieved by Wacker
Neuson SE and its affi liated companies depend on a number of risks and uncertainties and may therefore
differ materially from the forward-looking statements. Many of these factors are outside the Company‘s con-
trol and cannot be accurately estimated in advance, such as the future economic environment and the actions
of competitors and others involved in the marketplace. The Company neither plans nor undertakes to update
any forward-looking statements.
All rights reserved. Valid May 2010. 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. In the event of discrepancies between the German and the English version, the German version shall
prevail.
25Additional Table Financial Calendar/IR Contact
Wacker Neuson SE
Preussenstrasse 41
80809 Munich
Germany
Tel. +49 - (0)89 - 354 02 - 0
Fax +49 - (0)89 - 354 02 - 390
www.wackerneuson.com
