Wacker Neuson Group: As expected, first quarter of 2024 weaker than previous
year - full-year revenue and EBIT guidance confirmed

EQS-News: Wacker Neuson SE / Key word(s): Quarterly / Interim
Statement/Quarter Results
Wacker Neuson Group: As expected, first quarter of 2024 weaker than previous
year - full-year revenue and EBIT guidance confirmed

07.05.2024 / 07:00 CET/CEST
The issuer is solely responsible for the content of this announcement.

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Wacker Neuson Group: As expected, first quarter of 2024 weaker than previous
year - full-year revenue and EBIT guidance confirmed

  * Group revenue down 11.1 percent year-over-year to EUR 593.1 million in
    Q1 2024

* EBIT margin at 6.2 percent, an increase of 1.1 PP compared to Q4 2023

* Cost-cutting measures taking effect

  * Net working capital remains at an elevated level, focus on reducing
    inventories

* Guidance for 2024 confirmed unchanged

Munich, May 7, 2024 - As expected, the Wacker Neuson Group got off to a slow
start in the fiscal year 2024 due to the ongoing economic slowdown in the
construction and agricultural sectors. High dealer inventories are also
leading to a weaker order intake and make it more difficult to reduce net
working capital. Measures to reduce SG&A as well as direct and indirect
production costs have already been taken, but have not yet been able to
fully compensate the reduced production output. Revenue fell by 11.1 percent
year-over-year to EUR 593.1 million (Q1 2023: EUR 667.2 million), while
earnings before interest and taxes (EBIT) amounted to EUR 36.9 million (Q1
2023: EUR 87.8 million). At 6.2 percent, the EBIT margin was lower than in
the previous year (Q1 2023: 13.2 percent), but already higher than in the
previous quarter of Q4 2023 (5.1 percent). The Wacker Neuson Group expects
market demand and plant capacity utilization to improve over the remainder
of the year, accompanied by a reduction in inventories. The full-year
guidance for revenue and EBIT remains unchanged. The Group will also
continue to focus on the implementation of its Strategy 2030 along the ten
strategic levers. In the long term, the Group is aiming to achieve a revenue
of EUR 4 billion, an EBIT margin of over 11 percent and a ratio of net
working capital to revenue of less than 30 percent.

"After a very successful previous year, the 2024 financial year has begun
with the expected challenges. The cyclical nature of the business is no
surprise to us - we have already begun to adapt our structures to the lower
market demand. We expect to increase revenue and profitability from quarter
to quarter. We pay close attention to our annual targets and confirm them.
Strategy 2030 keeps us on course in the long term and secures our track
record," explains Dr. Karl Tragl, Chairman of the Executive Board and CEO of
the Wacker Neuson Group.

Q1 2024 results in detail

  * All regions affected by economic slowdown: revenue in the Europe region
    (EMEA) fell by 8.9 percent to EUR 459.3 million (Q1 2023: EUR 504.0
    million). A noticeable slowdown in growth was observed in all
    submarkets. However, positive demand impulses were observed in some
    countries (e.g. Austria). Revenue in the Americas region fell by 15.6
    percent to EUR 120.4 million. The main reason for this was the continued
    high dealer inventory levels. The Asia-Pacific region also declined by
    35.0 percent. Revenue there amounted to EUR 13.4 million (EUR 20.6
    million). In contrast to these developments, the growth in agricultural
    machinery was slightly positive (+3.3 percent).

  * EBIT increases compared to Q4 2023: As expected, the EBIT margin
    improved compared to the previous quarter, reaching 6.2 percent. The
    margin increase was achieved thanks to the cost-cutting measures
    launched in 2023. The EBIT margin in Q1 2024 is driven by the low
    revenue level in relation to operating costs. Compared to the previous
    year, it should also be noted that Q1 2023 earnings included
    non-recurring other operating income of EUR 15.5 million (from the sale
    of real estate). Excluding this one-off effect, the percentage increase
    in operating costs (including other operating income and expenses)
    amounted to 7.3% compared to the previous year. The increase is largely
    due to higher personnel costs, although cost-saving measures are being
    actively implemented in all areas. In absolute terms, EBIT amounted to
    EUR 36.9 million (Q1 2023: EUR 87.8 million). An improvement is expected
    in the course of 2024.

  * Weak demand weighs on net working capital: In absolute figures, net
    working capital amounted to EUR 917.5 million on March 31, 2024 and,
    therefore, was 5.5 percent higher than at the year-end of 2023 (December
    31, 2023: EUR 869.5 million). At 38.7 percent the annualized net working
    capital ratio in the first quarter of 2024 was above the target value of
    30.0 percent. The increase in the annualized net working capital ratio
    compared to Q4 2023 is due to a slight increase in trade receivables and
    inventories and a lower revenue level. Inventories rose slightly
    compared to the year-end of 2023 (+0.7%). At the same time unfinished
    goods increased by 13.4 percent. The increase in finished goods amounted
    to 1.7 percent compared to the year-end of 2023, while raw materials
    decreased by 4.8 percent. Trade receivables increased by 11.5 percent
    compared to December 31, 2023 due to seasonal fluctuations. Trade
    payables were at a similar level to the year-end of 2023.

  * Cash flow development still characterized by high net working capital:
    Operating cash flow increased by EUR 9.0 million compared to Q1 2023,
    from EUR -7.8 million to EUR 1.2 million. Investments amounted to EUR
    24.2 million (Q1 2023: EUR 33.6 million), of which EUR 14.9 million were
    attributable to property, plant and equipment and EUR 9.3 million to
    intangible assets (Q1 2023: EUR 25.0 million and EUR 8.6 million). Free
    cash flow fell accordingly to EUR -25.1 million (Q1 2023: EUR -17.1
    million). Cash and cash equivalents amounted to EUR 26.2 million as of
    March 31, 2024 (March 31, 2023: EUR 35.1 million).

Guidance for 2024 unchanged

Based on the volatile political and economic developments at the beginning
of 2024, the Group is facing high levels of uncertainty for the current
fiscal year. The Executive Board expects a reduction of dealer stock and an
improvement in the overall market environment over the course of the year.
The Executive Board therefore expects to see growth remain flat or fall
slightly in fiscal 2024 in its three reporting regions Europe, Americas and
Asia-Pacific. For the fiscal year 2024, the Executive Board expects revenue
to lie between EUR 2,400 and 2,600 million, with an EBIT margin between 8.0
and 9.0 percent. Group revenue is expected to recover and profitability is
forecast to grow slightly in fiscal 2025. Over the longer term, the Wacker
Neuson Group believes that global megatrends will continue to provide
opportunities for its business model. The Group plans to capitalize on these
trends in the future in a number of ways, including by focusing on
developing its core markets and offering a portfolio of innovative products
and services.

Key indicators for the Wacker Neuson Group

    Key figures in EUR m        Q1/24  Q1/23       
    Revenue                   593.1  667.2  -11.1%
    EBIT1                      36.9   87.8  -58.0%
    EBIT margin (as a %)1       6.2   13.2  -7.0PP
    Profit for the period1     23.3   62.4  -62.7%
    Earnings per share in EUR1   0.34   0.92  -63.0%
    Free cash flow            -25.1  -17.1  -46.8%

1 The previous year's figure includes one-off income of EUR 15.5 million
(sale of non-current assets no longer necessary for operations).

Management call and webcast

A management call and webcast for institutional investors, analysts and
members of the press is scheduled for May 7, 2024 at 11:00 a.m. CEST to
present the Q1 2024 results, followed by a Q&A session.

Registration for the event is possible after contacting ir@wackerneuson.com.

A replay will be available later on the Wacker Neuson Group website.

Contact:

Wacker Neuson SE

Peer Schlinkmann

Investor Relations

Preussenstrasse 41

80809 Munich, Germany

Tel. +49-(0)89-35402-1823

ir@wackerneuson.com

www.wackerneusongroup.com

The Wacker Neuson Group's complete quarterly report for Q1 2024 is available
at the following link: https://wackerneusongroup.com/en/investor-relations

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


About the Wacker Neuson Group:

The Wacker Neuson Group is an international network of companies, employing
around 6,600 people worldwide. In fiscal 2023, the Group achieved revenue of
EUR 2.7 billion. As a leading manufacturer of light and compact equipment,
the Group offers its customers a broad portfolio of products, a wide range
of services and an efficient spare parts service. Wacker Neuson Group 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 rail transport. The product brands
Wacker Neuson, Kramer and Weidemann belong to the Group. Wacker Neuson SE
shares are listed on the regulated Prime Standard segment of the Frankfurt
Stock Exchange (ISIN: DE000WACK012, WKN: WACK01) and are member of the SDAX.


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   Language:       English
   Company:        Wacker Neuson SE
                   Preußenstr. 41
                   80809 München
                   Germany
   Phone:          +49 - (0)89 - 354 02 - 1823
   Fax:            +49 (0)89 354 02 - 298
   E-mail:         ir@wackerneuson.com
   Internet:       www.wackerneusongroup.com
   ISIN:           DE000WACK012
   WKN:            WACK01
   Indices:        SDAX
   Listed:         Regulated Market in Frankfurt (Prime Standard);
                   Regulated Unofficial Market in Berlin, Dusseldorf,
                   Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange
   EQS News ID:    1896685

End of News EQS News Service
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1896685 07.05.2024 CET/CEST