Slide 1: Continuing the upward trend
PALFINGER AG Continuing the upward trend Presentation on the third quarter 2010 11 November 2010
Slide 2: 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 Short-time strengthening of structure of assets capital employed for work ended and earnings, fixed cost sa
Slide 3: Highlights
Highlights • Slight market recovery since end of 2009 • Revenue of EUR 464.9 million is 19.9% higher than Q1–Q3 2009 Acquisitions contributed around EUR 21 million or almost 5% to revenue • Sustainable structural and cost-related measures support earnings • Above-average increase in EBIT from EUR
Slide 4: Strategy
Strategy
Slide 5: 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 6: Internationalisation
Internationalisation Revenue Q1–Q3 2009 Revenue Q1–Q3 2010 19.3% 27.3% AREA UNITS AREA UNITS 80.7% 72.7% EUROPEAN UNITS EUROPEAN UNITS 6
Slide 7: 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 8: Strategic activities
Strategic activities • Strengthening of the Group‘s earnings and assets Comprehensive programme completed in 2009 • Focus in 2010: Reduction of current capital employed increases financial flexibility • Majority stakeholding in ETI (80 percent) Top player in the field of access platforms in Nort
Slide 9: New business unit Marine Systems
New business unit Marine Systems • New business unit since 2010; includes Ned-Deck Marine • Acquisition of the marine crane division of Palfinger systems GmbH in Q4 Well positioned in the marine crane segment; market leader in cranes for offshore wind power plants Purchase price: asset value and
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 • Area North America Knuckle Boom Cranes* • Area South America • Business unit Timber and Recycling Cranes* • Area Asia and Pacific • Business unit Tail Lifts* • Area India • Business unit A
Slide 13: Segment financials
Segment financials Revenue Q1–Q3 2010 Q1–Q3 2009 % EUROPEAN UNITS 338.1 312.9 + 8.1% AREA UNITS 126.8 75.0 + 69.1% VENTURES – – – Segment result Q1–Q3 2010 Q1–Q3 2009 % EUROPEAN UNITS 34.6 6.1 – AREA UNITS (5.7) (7.2) + 20.8% VENTURES (5.2) (2.9) (81.9%) Acc. to IFRS in million EUR Minor rounding di
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, Scandinavia; Spain, Great Britain, Ireland, Greece, Eastern Europe still weak • Cranes on the rise, declines recor
Slide 15: AREA UNITS
AREA UNITS • Rise in revenue of 69.1% 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 • Acquisition in the new business unit Marine Systems • Establishment of an assembly site in India • Additional projects for the expansion of the AREA UNITS segment underway 16
Slide 17: Key financial figures
Key financial figures
Slide 18: Financial highlights
Financial highlights Q1–Q3 2010 Q1–Q3 2009* Q1–Q3 2008 Revenue 464.9 387.9 607.2 EBITDA 39.0 10.2 90.3 EBITDA margin 8.4% 2.6% 14.9% EBIT 22.4 (6.1) 74.7 EBIT margin 4.8% (1.6%) 12.3% Result before income tax 19.4 (10.7) 73.3 Consolidated net result for the period 11.8 (9.8) 51.3 * In the course of
Slide 19: Quarterly figures
Quarterly figures Revenue EBIT 250 215 50 209 191 184 188 200 164 168 168 40 140 129 129 150 119 117 30 29.5 29.8 100 26.3 20 22.4 50 15.3 10 10.1 8.8 0 0 (5.6) 3.4 (3.3) (2.6) (0.2) 1.0 -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 Q3/10 EBIT 13.6% 13.8% 14.1% 13.9
Slide 20: Capital employed
Capital employed Net Working Capital Non-current operating assets 454 450 466 500 400 317 144 132 170 300 243 117 200 94 284 306 334 100 200 149 0 Q1–Q3 2006 Q1–Q3 2007 Q1–Q3 2008 Q1–Q3 2009 Q1–Q3 2010 Targeted capital employed management; increase due to acquisitions Acc. to IFRS in million EUR Min
Slide 21: Investment
Investment Investment in property, plant, and equipment Depreciation, amortisation, and impairment 60 48.3 50 38.6 40 30 20 15.7 16.2 16.6 13.0 10.7 9.9 10 6.0 6.7 0 Q1–Q3 2006 Q1–Q3 2007 Q1–Q3 2008 Q1–Q3 2009 Q1–Q3 2010 Investment programme 2006–2008 completed Acc. to IFRS in million EUR Minor roun
Slide 22: Gearing ratio and equity
Gearing ratio and equity Net debt Equity Gearing % 350 319.8 315.9 100% 300 277.3 286.9 228.0 75% 250 200 161.5 56.3% 150.5 150 133.5 47.7% 50% 41.7% 100 25% 39.4 6.8% 50 15.4 14.2% 0 0% Q1–Q3 2006 Q1–Q3 2007 Q1–Q3 2008 Q1–Q3 2009 Q1–Q3 2010 Below 50% threshold in spite of acquisitions Acc. to IFRS
Slide 23: Free cash flow
Free cash flow Q1–Q3 2010 Q1–Q3 2009 Q1–Q3 2008 EBTDA 38.0 5.3 87.4 +/– Cash flows from working capital (2.3) 30.9 (31.1) +/– Cash flows from tax payments (2.8) (2.6) (24.5) Cash flows from operating activities 32.9 33.6 31.8 +/– Cash flows from investing activities (30.8) (10.8) (55.3) Cash flows a
Slide 24: Financing structure as of 30 September 2010
Financing structure as of 30 September 2010 120 120 Ø Interest rate 4.41% 100 Ø Remaining time 2.24 years 80 to maturity Financial assets EUR 30.6 million 60 Equity rate 49.0% 40 34 32 20 0 Maturity < 1 year up to > 2 years 2 years Acc. to IFRS in million EUR Minor rounding differences may occur. 24
Slide 25: PALFINGER share
PALFINGER share Shareholder structure Shareholder information as of 30 September 2010 34% 1% PALFINGER AG ISIN AT0000758305 free float* Number of shares 35,730,000 Share price as of EUR 18.81 end of period Market capitalisation EUR 672.1 million Earnings per share EUR 0.33 65% Palfinger family * of
Slide 26: Outlook
Outlook
Slide 27: Outlook and objectives – internally
Outlook and objectives – internally • Development of demand directly reflected in order intake • Flexibility of value-creation process as a material factor of success • Investment in market activities and strong network will be continued Takeover of the tail lift service business of Ross & Bonnyma
Slide 28: Outlook and objectives – externally
Outlook and objectives – externally • Recovery of major markets expected to continue in Q4 • Visibility slightly raised, but markets expected to remain volatile • Macroeconomic development remains uncertain • Revenue growth of more than 20 percent striven for in 2010 Exceptional increase in earnings
Slide 29: Research Reports
Research Reports Berenberg Bank Hauck & Aufhäuser Cheuvreux HSBC Deutsche Bank RCB Erste Bank UBS Goldman Sachs UniCredit Earnings Estimates – Consensus (in million EUR) 2010e 2011e Revenue 608.2 712.9 EBIT 33.5 67.0 Earnings per share (EUR) 0.51 1.20 29
Slide 30: Financial calendar 2010/11
Financial calendar 2010/11 Publication of preliminary results 12 November 2010 Roadshow Zurich 24 January 2011 for 2010 13 November 2010 Stock exchange day Munich 23 February 2011 Balance sheet press conference 15 November 2010 Crane seminar Helsinki 30 March 2011 Annual General Meeting Publication
Slide 31: Investor relations
Investor relations Herbert Ortner, CEO Hannes Roither, Company Spokesperson Phone: +43 662 46 84-2222 Phone: +43 662 46 84-2260 h.ortner@palfinger.com h.roither@palfinger.com PALFINGER AG Franz-Wolfram-Scherer-Strasse 24 5101 Bergheim, Salzburg Fax: +43 662 46 84-2280 This presentation contains forw
Slide 32: Backup
Backup
Slide 33: Performance of the PALFINGER share since 2009
Performance of the PALFINGER share since 2009 200 PALFINGER AG EUR 21.90 180 160 ATX 140 DAX 120 100 80 60 2 Jan 2009 30 Dec 2009 29 Oct 2010 33