Slide 1: Presentation on the 2016 financial year
PALFINGER AG Another record in revenue Increase in operating profitability Establishment of marine business as second mainstay Presentation on the 2016 financial year 7 February 2017
Slide 2: Herbert Ortner, CEO
HERBERT ORTNER, CEO 2
Slide 3: Growth despite market volatility
GROWTH DESPITE MARKET VOLATILITY REVENUE, GROWTH AND VOLATILITY (QUARTERS) LAND segment from 2009 to 2016: +149% SEA segment from 2011 to 2016: +1,372% Quarterly result EUR Total revenue 292.7m 300 +172.1% 2009–2016 CAGR: 20.8% 200 EUR 117.5m Q1/2011 EUR EUR 4.6m 67.7m 2010 2011 2012 2013 2014 2015
Slide 4: Highlights 2016
HIGHLIGHTS 2016 2016 marked by strong growth in revenue and earnings » Increase in sales in Europe, CIS, North America and China » Foundation of PALFINGER Iberica had positive effect » Local value creation in CIS proved its worth, joint venture with KAMAZ positive » Joint venture with SANY doubled s
Slide 5: Strategic highlights 2016
STRATEGIC HIGHLIGHTS 2016 Expansion of marine business » Acquisition of the Harding Group makes PALFINGER world market leader in maritime lifesaving equipment » One-stop-shop solutions for products and services » Marine business volume doubled to more than EUR 300 million Restructuring » North Ameri
Slide 6: Strategy
STRATEGY 6
Slide 7: PALFINGER's business strategy
PALFINGER‘S BUSINESS STRATEGY Strategic pillars: Innovation – internationalization – flexibility Expand relevant market position on the world market in both segments Further acquisitions to strengthen marine business Completion of product portfolio in all regions Growth through higher market shares
Slide 8: The PALFINGER Group – an overview
THE PALFINGER GROUP – AN OVERVIEW Group: approx. EUR 1.4bn, approx. 9,970 employees » 38 production sites Land: approx. EUR 1.2bn Sea: approx. EUR 0.2bn » 7,800 employees » 1,500 employees » 5,000 service centres worldwide » 16 service centres worldwide » Number one worldwide for truck mounted » Num
Slide 9: Internationalization: strategic target and revenue 2016
INTERNATIONALIZATION STRATEGIC TARGET REVENUE 2016 ASIA AND PACIFIC ASIA AND PACIFIC CIS CIS EMEA 18.5% ⅓ ⅓ AMERICAS 58.4% 23.1% ⅓ AMERICAS EMEA 9
Slide 10: Martin Zehnder, COO: Value creation and digitalization
MARTIN ZEHNDER, COO VALUE CREATION AND DIGITALIZATION 10
Slide 11: 38 production sites
38 PRODUCTION SITES Asia CIS Europe Americas Rudong/CHN Ishimbay/RUS Lengau/AUT Cadelbosco/ITA Maribor/SLO Lazuri/ROU Niagara Falls/CAN Oklahoma City/USA Qingdao/CHN Archangelsk/RUS Köstendorf/AUT Modena/ITA Delnice/CRO Tiffin/USA Caxias do Sul/BRA Hung Yen / Hanoi/VIE Velikije Luki/RUS Elsbethen/AU
Slide 12: "Go East" strategy EMEA
“GO EAST” STRATEGY EMEA Expansion at Cherven Brjag » From components to products » Investments in painting and assembly Cylinder production at Tenevo » Further expansion of manufacturing for third parties » Outsourcing of small cylinders » Support of cylinder plant in Russia Expansion electroplating
Slide 13: Mounting competence centre
MOUNTING COMPETENCE CENTRE From products to turn-key solutions One-stop-shop expertise our sales partners and customers Strong networks with dealers, truck manufacturers, suppliers and major customers Mounting centres in EMEA, the Americas, Asia and CIS JV Kamaz Mounting Lengau MCC Truck + PK200000
Slide 14: PALFINGER's digital transformation
PALFINGER’s DIGITAL TRANSFORMATION New mobility concepts User-friendly technology Self-driving cars Smart products Digitalization trends Less trained users New transport logistics Robots Human Machine Interface The value of data New business models Consequences for PALFINGER Cranes become robots Sim
Slide 15: Digitalization topics
DIGITALIZATION TOPICS “Smart services” “Smart functions” “Smart apps” “Smart processes” New digital business Digitalization Interaction Digitalization models of products with customers of processes • Data-based business • Data loggers & user data • After-sales portal • Supply chain management models
Slide 16: Example digitalization in recycling
EXAMPLE DIGITALIZATION IN RECYCLING CLOUD New possible features » Automatic approach system » Recognition via RFID » Weight determination during the lifting process (overload) » Automated container emptying process » Automated container positioning » Measurement of container content » Picking up con
Slide 17: Current Industry 4.0 projects
CURRENT INDUSTRY 4.0 PROJECTS Paperless Self-driving Augmented reality manufacturing Overview logistics train Tolerances Virtual reality 3D printing Welding data 17
Slide 18: Herbert Ortner, CEO
HERBERT ORTNER, CEO 18
Slide 19: Land segment
LAND SEGMENT 19
Slide 20: Product portfolio Land segment
PRODUCT PORTFOLIO LAND SEGMENT PALFINGER is the leading supplier Loader cranes of loading, lifting and handling systems Timber and recycling cranes Telescopic cranes Mobile cranes Access platforms Tail lifts Hooklifts Truck mounted forklifts Passenger lifts Bridge inspection units Railway systems Af
Slide 21: Global footprint – local value creation
GLOBAL FOOTPRINT – LOCAL VALUE CREATION 30 production sites LAND 5,000 services centres (approx. 10,000 service staff / of which approx. 700 PALFINGER) 21
Slide 22: Highlights Land segment
HIGHLIGHTS LAND SEGMENT Growth based on good performance in Europe, increase in revenue of 9.2% to EUR 1,153.9 million » Demand in EMEA still strong » Asia and CIS show satisfactory performance » Cooperation with SANY remains highly successful » Further contraction of Brazilian market by around 40%
Slide 23: Financials Land segment
FINANCIALS LAND SEGMENT 20151) 2016 % Revenue 1,057.0 1,153.9 +9.2% EBITDAn 147.9 175.6 +18.8% EBITDAn margin 14.0% 15.2% – EBITn 113.7 138.4 +21.7% EBITn margin 10.8% 12.0% – Restructuring costs 6.7 9.5 +41.8% Operating profitability rose to 15.2 per cent 1) Figures were calculated retrospectivel
Slide 24: Sea segment
SEA SEGMENT 24
Slide 25: 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 Davit systems Boats Winches and offshore equipment Wind cranes Rope access professionals After sales and service 25
Slide 26: Global footprint – also in services
GLOBAL FOOTPRINT – ALSO IN SERVICES 10 production sites SEA 16 services centres (approx. 300 PALFINGER service staff) 26
Slide 27: Highlights Sea segment
HIGHLIGHTS SEA SEGMENT Revenue increased by 17.4% to EUR 203.1 million due to acquisition of Harding Group » Harding contributed EUR 45.4 million to revenue » Low oil price lowered investment propensity in core customer industry » Declining demand for cranes » Upward trend in wind energy industry ha
Slide 28: Financials Sea segment
FINANCIALS SEA SEGMENT 20151) 2016 % Revenue 172.9 203.1 +17.4% EBITDAn 19.9 11.5 (42.4%) EBITDAn margin 11.5% 5.6% – EBITn 15.7 2.9 (81.4%) EBITn margin 9.1% 1.4% – Restructuring costs 0.7 6.1 +818.6% Global service business will stabilize earnings 1) Figures were calculated retrospectively due t
Slide 29: Christoph Kaml, CFO: Key financials
CHRISTOPH KAML, CFO KEY FINANCIALS 29
Slide 30: Key financials
KEY FINANCIALS 20141) 2015 2016 % Revenue 1,063.4 1,229.9 1,357.0 +10.3% EBITDAn2) 104.6 154.4 172.5 +11.7% EBITDAn margin2) 9.8% 12.6% 12.7% – EBITn2) 66.1 113.4 123.7 +9.1% EBITn margin2) 6.2% 9.2% 9.1% – Result before income tax 54.2 93.0 93.2 +0.3% Consolidated net result 38.2 64.4 61.2 –5.0% fo
Slide 31: Current capital
CURRENT CAPITAL1) 1) Current capital CC ratio 600 40% 27.3% 27.5% 500 26.9% 26.3% 25.2% 30% 400 268 287 357 300 255 20% 310 200 10% 100 0 0% 2012 2013 2014 2015 2016 Long-term flexibility of balance-sheet structure 1) Average Acc. to IFRS in EUR million. Minor rounding differences may occur. 31
Slide 32: Investments
INVESTMENTS Net investments Depreciation, amortization and impairment 80 71.4 70 65.9 2) 60.4 60 49.9 50 40.8 41.0 38.6 40 29.9 31.7 31.7 30 20 10 0 2012 2013 1) 2014 1) 2015 2016 Investments to expand production capacities and replacement investments 1) Figures for 2013 and 2014 were adjusted wit
Slide 33: Gearing ratio and equity
GEARING RATIO AND EQUITY Net debt Equity Gearing % 700 100% 88.50% 600 579.9 78.4% 68.1% 510.7 513.1 75% 500 454.7 59.8% 57.9% 400 356.6 347.9 379.7 50% 300 363.8 217.6 220.0 200 25% 100 0 0% 1) 1) 2012 2013 2014 2015 2016 Acquisition of Harding increased net debt; Solid performance of equity 1) F
Slide 34: Free cash flows
FREE CASH FLOWS 20141) 2015 2016 EBTDA 92.4 133.9 143.2 +/– Non-cash result from companies at (1.1) (4.0) (3.6) equity +/– Change in working capital (37.6) (11.0) 0.1 +/– Cash flows from tax payments (6.5) (8.3) (30.1) Cash flows from operating activities 47.2 110.6 109.6 +/– Cash flows from investi
Slide 35: Outlook
OUTLOOK HERBERT ORTNER, CEO 35
Slide 36: Outlook and objectives
OUTLOOK AND OBJECTIVES Continuation of growth strategy » Completion of product portfolio in all regions » Digital services as drivers of growth and value » Reduction of current capital » Industry 4.0 as flexibility boost » Further development of corporate culture Further expansion of marine business
Slide 37: Investor Relations
INVESTOR RELATIONS Herbert Ortner, CEO Hannes Roither, Company Spokesperson Phone +43 662 2281-81001 Phone +43 662 2281-81100 h.ortner@palfinger.com h.roither@palfinger.com PALFINGER AG Lamprechtshausener Bundesstrasse 8 5101 Bergheim www.palfinger.ag This presentation contains forward-looking state