Slide 1: Back to recording growth
PALFINGER AG Back to recording growth Presentation on the first half 2010 Vienna, 11 August 2010
Slide 2: Herbert Ortner, CEO
Herbert Ortner, CEO
Slide 3: 2007–2010 in fast motion: Post-crisis growth
2007–2010 in fast motion: Post-crisis growth Start of reduction in fixed costs Cutbacks in Demand and temporary workers revenue on the rise Capacity utilisation decreases, Further reduction in End of strengthening of structure of capital employed for a short-time assets and earnings, fixed cost shor
Slide 4: Highlights
Highlights • Improvement of market environment since the end of 2009 • Revenue trend positive again EUR 297.4 million as compared to EUR 269.2 million in the first half 2009 • Sustainable structural and cost-related measures support earnings Consistent improvement of margins continued • EBITDA i
Slide 5: Strategy
Strategy
Slide 6: PALFINGER at a glance
PALFINGER at a glance • Leading international manufacturer of hydraulic lifting, loading, and handling systems at each interface of the transport chain • Innovation and diversification in 11 product groups Number one in knuckle boom cranes, timber and recycling cranes, and container handling syste
Slide 7: Internationalisation
Internationalisation Revenue HY1 2009 Revenue HY1 2010 17.5% 24.2% AREA UNITS AREA UNITS 82.5% 75.8% EUROPEAN UNITS EUROPEAN UNITS 7
Slide 8: Diversification
Diversification Con- Transport, Local Agriculture Product divisions Recycling Service Marine Other struction commerce authorities & forestry Knuckle boom cranes Timber and recycling cranes Telescopic cranes (South America) Truck bodies (North America) Container handli
Slide 9: Strategic activities
Strategic activities • Strengthening of the Group‘s earnings and assets Comprehensive programme completed in 2009 • Focus in 2010: Project to reduce current capital employed increases financial flexibility • Majority stakeholding in ETI (80 percent) Top player in the field of access platforms in
Slide 10: Segments
Segments
Slide 11: New PALFINGER organisational structure
New PALFINGER organisational structure • In line with the growth achieved in recent years and the challenges to be faced in the years to come • Focus on internationalisation (Europe and areas) • Increased independence of regions and product units – local products for local customer needs • Bundling
Slide 12: New segmentation from 2010 onwards
New segmentation from 2010 onwards EUROPEAN UNITS AREA UNITS VENTURES segment segment segment • Business unit Knuckle Boom • Area North America Cranes • Area South America • Business unit Timber and • Area Asia and Pacific Recycling Cranes • Area India • Business unit Tail Lifts • Area CIS • Busines
Slide 13: Segment financials
Segment financials Revenue HY1 2010 HY1 2009 % EUROPEAN UNITS 225.4 222.1 + 1.5% AREA UNITS 72.0 47.1 + 52.8% VENTURES – – – Segment result HY1 2010 HY1 2009 % EUROPEAN UNITS 24.5 2.8 – AREA UNITS (6.5) (5.5) (18.8%) VENTURES (3.4) (1.5) – Acc. to IFRS in million EUR Minor rounding differences may o
Slide 14: EUROPEAN UNITS
EUROPEAN UNITS • Slight recovery in important sales markets noticed since the beginning of the year, direct impact on revenue due to very low inventories Increases in Germany, France; Spain, Great Britain, Ireland, Greece, Eastern Europe still weak • Crane revenues on the rise, declines recorded i
Slide 15: AREA UNITS
AREA UNITS • Rise in revenue of 52.8% reflects increasing importance • Solid basis for continued growth created in North America Initial consolidation of ETI in April • South America: Increasing demand in Brazil • Asia and Pacific: Satisfactory increase, but at a low level • India: Establishment o
Slide 16: VENTURES
VENTURES • Coordination of the CC-Top (current capital) project • Majority stakeholdings in ETI and NDM completed • Establishment of an assembly site in India • Additional projects for the expansion of the AREA UNITS segment underway • Strengthening of the new area marine cranes planned 16
Slide 17: Key financial figures
Key financial figures Christoph Kaml, CFO
Slide 18: Financial highlights
Financial highlights HY1 2010 HY1 2009* HY1 2008 Revenue 297.4 269.2 423.5 EBITDA 23.9 5.1 69.2 EBITDA margin 8.0% 1.9% 16.4% EBIT 13.5 (5.9) 59.3 EBIT margin 4.5% (2.2%) 14.0% Result before income tax 11.9 (8.5) 59.2 Consolidated net result for the period 7.3 (8.0) 42.5 * In the course of the final
Slide 19: Quarterly figures
Quarterly figures Revenue EBIT 250 50 209 215 191 184 188 200 40 164 168 140 150 129 119 129 30 117 29.5 29.8 100 26.3 20 22.4 50 15.3 10 10.0 0 0 (5.6) (0.2) 1.0 3.4 (3.3) (2.6) -50 -10 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 EBIT 13.6% 13.8% 14.1% 13.9% 8.3% (3.0%)
Slide 20: Capital employed
Capital employed Net Working Capital Non-current operating assets 464 471 500 413 400 156 138 300 153 300 238 115 200 93 308 332 260 100 185 145 0 HY1 2006 HY1 2007 HY1 2008 HY1 2009 HY1 2010 Targeted capital employed management; increase due to acquisition Acc. to IFRS in million EUR Minor rounding
Slide 21: Investment
Investment Investment in property, plant, and equipment Depreciation, amortisation, and impairment 40 34.0 30 28.2 20 9.9 11.0 10.4 10 7.4 6.8 7.0 3.8 3.9 0 HY1 2006 HY1 2007 HY1 2008 HY1 2009 HY1 2010 Investment programme 2006–2008 completed Acc. to IFRS in million EUR Minor rounding differences ma
Slide 22: Gearing ratio and equity
Gearing ratio and equity Net debt Equity Gearing % 350 100% 309.9 313.3 300 288.4 263.5 250 75% 213.4 170.8 59.2% 200 157.9 50% 150 50.4% 102.6 100 33.1% 36.3 25% 50 23.3 10.9% 13.8% 0 0% HY1 2006 HY1 2007 HY1 2008 HY1 2009 HY1 2010 Acc. to IFRS in million EUR Minor rounding differences may occur. 2
Slide 23: Free cash flow
Free cash flow HY1 2010 HY1 2009 HY1 2008 EBTDA 24.3 2.8 66.6 + / - Cash flows from working capital 0.7 17.9 (27.0) + / - Cash flows from tax payments (1.6) (2.2) (8.1) Cash flows from operating activities 23.4 18.6 31.5 Cash flows from investing activities (22.6) (7.7) (27.4) Cash flows after chang
Slide 24: Herbert Ortner, CEO
Herbert Ortner, CEO
Slide 25: PALFINGER share
PALFINGER share Shareholder structure Shareholder information as of 30 June 2010 34% 1% PALFINGER AG ISIN AT0000758305 free float* Number of shares 35,730,000 Share price as of EUR 18.08 end of period Market capitalisation EUR 646.0 million Earnings per share EUR 0.21 65% Palfinger family of which >
Slide 26: Outlook
Outlook
Slide 27: Outlook and objectives – internally
Outlook and objectives – internally • Development of demand directly reflected in order intake • Short-time work will be ended early at the end of August • Flexibility of value-creation process as a material factor of success • Investment in market activities and strong network will be continued • A
Slide 28: Outlook and objectives – externally
Outlook and objectives – externally • Recovery of important markets expected to continue • Visibility currently slightly raised • Third quarter always marked by weaker summer months and company holiday • Macroeconomic development remains uncertain • Organic growth of 15 percent striven for Market vo
Slide 29: Investor relations
Investor relations Herbert Ortner, CEO Phone: +43 662 46 84-2222 h.ortner@palfinger.com Hannes Roither, Company Spokesperson Daniela Werdecker, Corporate Communications Phone: +43 662 46 84-2260 Phone: +43 662 46 84-2219 h.roither@palfinger.com d.werdecker@palfinger.com PALFINGER AG Franz-Wolfram-Sc
Slide 30: Back-up
Back-up
Slide 31: Performance of the PALFINGER share since 2009
Performance of the PALFINGER share since 2009 200 180 160 PALFINGER AG EUR 18.00 140 ATX DAX 120 100 80 60 2 Jan 2009 30 Dec 2009 30 July 2010 31