Palfinger Ag · VIE:PAL
Palfinger — H1 2018 Earnings Presentation
26 slides from Palfinger's earnings presentation, Jul 30, 2018
Slide 1: Continuation of growth: Presentation on the results for the first half of 2018
PALFINGER Continuation of growth Presentation on the results for the first half of 2018 Vienna, 30 July 2018
Slide 2: The Palfinger Group – An Overview
THE PALFINGER GROUP – AN OVERVIEW Global market leader Revenue: approx. EUR 1.5bn, 10,212 employees (year end 2017) » 39 production sites 60.9% EMEA – 23.6% Americas – 15.5% Asia and Pacific, CIS LAND: approx. EUR 1.2bn SEA: approx. EUR 0.2bn » 8,200 employees » 1,700 employees » 5,000 service centr
Slide 3: Consistent Growth – Organic and Through Acquisitions
CONSISTENT GROWTH – ORGANIC AND THROUGH ACQUISITIONS LAND segment from Q4 2009 to Q2 2018: +197% SEA segment from Q1 2011 to Q2 2018: +1,174% Quarterly revenue 400 EUR Total revenue 349.2m +191.1% 2009–2017 300 CAGR: 14.3%1) 2010 to 2017 24 acquisitions and joint ventures 200 Sky Steel Systems Palfi
Slide 4: Together We Are Shaping the Future of Our Customers' Lifting Solutions
TOGETHER WE ARE SHAPING THE FUTURE OF OUR PALFINGGR CUSTOMERS’ LIFTING SOLUTIONS r OUR CUSTOMERS AUZATION | a ——. INNOVATION | INTERNATION- of < f -) \ se FLEXIBILITY PALFINGER 21ST = a a i Vv $ eo Seay LIFETIME \. JTURNKEY EXCELLENCE PROCESS EXCELLENCE
Slide 5: Palfinger's Business Strategy
PALFINGER’S BUSINESS STRATEGY Strategic pillars: » Innovation – internationalization – flexibility – PALFINGER 21st Expand relevant market position on the world market Completion of product portfolio in all regions Growth through market share gains and increase in profitability Continuous innovation
Slide 6: Highlights HY1 2018
HIGHLIGHTS HY1 2018 Revenue of EUR 801.9m (+6.4%) marks new peak, operating profitability (measured by EBITn) in the double-digit range again Primarily organic expansion of business, mainly caused by positive development in Europe and CIS Marine business still highly challenging Restructuring in Nor
Slide 7: LAND Segment
LAND SEGMENT 7
Slide 8: Product Portfolio LAND Segment
PRODUCT PORTFOLIO LAND SEGMENT PALFINGER is the leading supplier of loading, Loader cranes lifting and handling systems Timber and recycling cranes Telescopic cranes Mobile cranes Stiff boom cranes Access platforms Tail lifts Hooklifts and skiploaders Truck mounted forklifts Passenger lifts Bridge i
Slide 9: Global Footprint – In Sales, Service, Product Development and Value Creation
GLOBAL FOOTPRINT – IN SALES, SERVICE, PRODUCT DEVELOPMENT AND VALUE CREATION 20 R&D centres 31 production sites LAND 5,000 service centres (approx. 10,000 service staff / of which approx. 700 PALFINGER) 9
Slide 10: Highlights LAND Segment
HIGHLIGHTS LAND SEGMENT Growth based on significant expansion of business in EMEA, revenue increased by 10.0% to EUR 687.0 million » Strong demand in EMEA in particular in construction, infrastructure and forestry » High volume of incoming orders leads to bottlenecks in the supply of externally manu
Slide 11: SEA Segment
SEA SEGMENT 11
Slide 12: Product Portfolio SEA Segment
PRODUCT PORTFOLIO SEA SEGMENT PALFINGER MARINE is the leading manufacturer of high-end deck equipment in the maritime sector Marine cranes Offshore cranes Wind cranes Lifesaving equipment Winches & handling solutions 12
Slide 13: Global Footprint – In Sales, Service, Product Development and Value Creation
GLOBAL FOOTPRINT – IN SALES, SERVICE, PRODUCT DEVELOPMENT AND VALUE CREATION 8 R&D centres 8 production sites SEA 26 service centres (approx. 300 PALFINGER service staff) 13
Slide 14: Highlights SEA Segment
HIGHLIGHTS SEA SEGMENT Restructuring in full swing » Revenue decreased by 11.0% to EUR 114.9 million » Share of segment revenue in consolidated revenue thus shrank from 17.1% to 14.3% » Business environment still difficult due to strained situation in the oil and gas industry » For now, increase in
Slide 15: Key Financials
KEY FINANCIALS 15
Slide 16: Financials LAND Segment
FINANCIALS LAND SEGMENT HY1 2017 HY1 2018 % Revenue 624.6 687.0 +10.0% EBITDAn1) 106.5 117.7 +10.5% EBITDAn margin1) 17.0% 17.1% – EBITn1) 86.1 98.7 +14.7% EBITn margin1) 13.8% 14.4% – Restructuring costs 7.5 5.8 (21.9%) Consistently strong growth and good operating profitability 1) Figures normaliz
Slide 17: Financial SEA Segment
FINANCIAL SEA SEGMENT HY1 2017 HY1 2018 % Revenue 129.2 114.9 (11.0%) EBITDAn1) 5.9 2.8 (52.5%) EBITDAn margin1) 4.6% 2.5% – EBITn1) (0.5) (3.1) – EBITn margin1) (0.4%) (2.7%) – Restructuring costs 2.5 6.3 +152.6% Significant decline in revenue; intensive restructuring 1) Figures normalized (n) by r
Slide 18: Key Financials of the Palfinger Group
KEY FINANCIALS OF THE PALFINGER GROUP HY1 2016 HY1 2017 HY1 2018 % Revenue 665.6 753.8 801.9 +6.4% EBITDAn1) 93.2 105.5 110.0 +4.3% EBITDAn margin1) 14.0% 14.0% 13.7% – EBITn1) 71.4 77.1 83.5 +8.3% EBITn margin1) 10.7% 10.2% 10.4% – EBIT 64.9 66.8 71.0 +6.3% Consolidated net result 39.7 38.6 35.2 (8
Slide 19: Return on Capital Employed
RETURN ON CAPITAL EMPLOYED Capital employed1) Net working capital Return on capital employed % 1,100 1,104 1100 40% 1000 954 900 852 800 30% 698 700 600 20% 500 400 300 8.3% 9.2% 7.3% 7.2% 7.5% 10% 200 309 273 259 270 313 100 0 0% HY1 2014 HY1 2015 HY1 2016 HY1 2017 HY1 2018 Increase in ROCE due to
Slide 20: Investments
INVESTMENTS Net investments Depreciation, amortization and impairment 50 46.0 40 35.61) 32.9 31.6 29.6 28.4 30 26.9 20.0 21.8 20 17.2 10 0 HY1 2014 HY1 2015 HY1 2016 HY1 2017 HY1 2018 Enlargement of production capacities and replacement investments 1) Adjusted by acquisition of interest in SANY, tot
Slide 21: Gearing Ratio and Equity
GEARING RATIO AND EQUITY Net debt Equity Gearing % 700 93.9% 94.9% 100% 86.9% 598.3 600 80.0% 74.4%511.9 540.9 539.6 568.3 520.0 80% 507.8 500 442.4 353.8 380.7 60% 400 300 40% 200 20% 100 0 0% HY1 2014 HY1 2015 HY1 2016 HY1 2017 HY1 2018 Substantial improvement of balance sheet structure Acc. to IF
Slide 22: Financing Structure as at 30 June 2018
FINANCING STRUCTURE AS AT 30 JUNE 2018 300 281 Financial liabilities (FL) EUR 579.8m Ø Interest rate FL 1.75% 209 Ø Remaining time to 200 3.52 years maturity FL Cash equivalents EUR 28.4m Net debt EUR 520.0m 100 89 Equity ratio 37.2% Gearing 86.9% Net debt/EBITDA 2.97 0 Maturity 0–1 years 1–5 years
Slide 23: Free Cash Flows
FREE CASH FLOWS HY1 2016 HY1 2017 HY1 2018 EBTDA 80.6 87.9 93.8 +/– Non-cash result from (0.9) (0.5) 0.2 companies at equity +/– Change in working capital (11.2) (49.5) (7.2) +/– Cash flows from tax payments (3.9) (7.1) (16.0) Cash flows from operating activities 64.6 30.8 70.8 +/– Cash flows from i
Slide 24: Outlook
OUTLOOK 24
Slide 25: Outlook and Objectives
OUTLOOK AND OBJECTIVES Continued increase in incoming orders gives reason to expect further positive business development and operating profitability Restructuring measures in the marine business will affect earnings in 2018 and 2019 Group-wide initiatives with a focus on internal synergies, process
Slide 26: Investor Relations
INVESTOR RELATIONS Andreas Klauser, CEO Hannes Roither, Company Spokesperson Phone +43 662 2281-81001 Phone +43 662 2281-81100 a.klauser@palfinger.com h.roither@palfinger.com PALFINGER AG Lamprechtshausener Bundesstrasse 8 5101 Bergheim www.palfinger.ag This presentation contains forward-looking sta