Slide 1: Presentation on the first three quarters of 2015
PALFINGER AG Presentation on the first three quarters of 2015 October 2015
Slide 2: Ongoing Market Volatility
ONGOING MARKET VOLATILITY REVENUE, GROWTH AND VOLATILITY (QUARTERS) AREA UNITS from 2008 to 2015: + 319% EUROPEAN UNITS from 2008 to 2015: + 11.9% 400 300 94.3m 22.5m 200 198.4m 186.5m 100 (45%) + 149% 0 2008 2009 2010 2011 2012 2013 2014 2015 Internationalization as basis for revenue growth Flexi
Slide 3: Highlights Q1–Q3
HIGHLIGHTS Q1–Q3 Q1–Q3 2015 marked by steep growth and strong earnings » Growth achieved in Europe, North America and CIS » Demand for loader cranes strong in Europe » Revenue in North America increased by more than 30% » Local value creation in Russia proved its worth » Joint venture with SANY in C
Slide 4: Strategic Highlights Q1–Q3
STRATEGIC HIGHLIGHTS Q1–Q3 Establishment of local value creation in Russia » Integration of PM-Group Lifting Machines » Successful start of production at the new INMAN plant » Start of operations of the joint ventures with KAMAZ » Lack of exports to CIS due to sanctions more than compensated Joint v
Slide 5: Strategic Targets 2017
STRATEGIC TARGETS 2017 Growth, primarily in North America, CIS, China and the marine business Completion of product portfolio in all regions Development of China into second domestic market Global balance of production and proximity to customers Expansion of market position in the marine and offshor
Slide 6: Strategy
STRATEGY 6
Slide 7: PALFINGER at a Glance
PALFINGER AT A GLANCE Leading international manufacturer of innovative lifting solutions » World market leader in loader cranes, marine cranes, wind cranes and hooklifts » Leading specialist in timber and recycling cranes, tail lifts, truck mounted forklifts and high-tech railway systems Global sale
Slide 8: 5 Continents – 7 Oceans
5 CONTINENTS – 7 OCEANS EMEA Loader cranes NORTH AMERICA Timber and recycling cranes Loader cranes CIS Tail lifts Timber and recycling cranes Loader cranes Access platforms Tail lifts Timber and recycling cranes Hooklifts Hooklifts Tail lifts Truck mounted forklifts Truck mounted forklifts Access pl
Slide 9: Internationalization (1)
INTERNATIONALIZATION (1) STRATEGIC TARGET 2017 REVENUE Q1–Q3 2015 approx. EUR 1.8bn* EUR 898.9m ASIA AND PACIFIC ASIA AND PACIFIC CIS CIS EMEA 15.28% ⅓ ⅓ AMERICAS 26.72% 58.00% ⅓ AMERICAS EMEA * Including JVs in China and Russia 9
Slide 10: Internationalization (2)
INTERNATIONALIZATION (2) REVENUE 2009 REVENUE Q1–Q3 2015 3.2% 2.1% 5.3% 4.7% REST OF EUROPE AFRICA AND REST OF EUROPE AFRICA AND CIS 0.4% MIDDLE EAST MIDDLE EAST FAR EAST 3.5% CIS 5.4% 7.0% 9.9% CENTRAL AND FAR EAST SOUTH AMERICA 12.3% 3.7% NORTH AMERICA CENTRAL AND SOUTH AMERICA 23.0% 48.0% 71.7% N
Slide 11: Segments
SEGMENTS 11
Slide 12: Segment Financials
SEGMENT FINANCIALS SEGMENT REVENUE Q1–Q3 2014* Q1–Q3 2015 % EUROPEAN UNITS 546.8 612.7 + 12.1% AREA UNITS 235.7 286.2 + 21.4% VENTURES – – – SEGMENT EBIT Q1–Q3 2014* Q1–Q3 2015 % EUROPEAN UNITS 62.2 76.3 + 22.7% AREA UNITS 6.8 12.7 + 86.2% VENTURES (12.4) (11.6) + 6.3% * The figures for the first th
Slide 13: European Units Segment
EUROPEAN UNITS SEGMENT Visibility remains low in Europe, but nevertheless increase of 12.1% achieved » Business units Loader Cranes, Access Platforms, Railway Systems, EPSILON, Hookflifts and Truck Mounted Forklifts posted increases in sales » Satisfactory capacity utilization of production units –
Slide 14: Area Units Segment
AREA UNITS SEGMENT Revenue increased by 21.4% to EUR 286.2 million » North America posted strong growth » Local value creation in Russia fully utilized » Asia recorded increases, good capacity utilization of the new plant in Rudong » South America suffered losses, but gained market shares » Segment‘
Slide 15: Ventures Unit
VENTURES UNIT Focus on integration of the acquired companies » Establishment of operations of the two joint ventures with KAMAZ » Acquisition of Norwegian Deck Machinery AS completed » Forward integration through joint venture with Fairwind LLC Continuation of cost-related and structural programmes
Slide 16: Key Financials
KEY FINANCIALS 16
Slide 17: Key Financials
KEY FINANCIALS Q1–Q3 2013 Q1–Q3 2014* Q1–Q3 2015 % Revenue 716.1 782.5 898.9 + 14.9% EBITDA 79.3 82.0 107.7 + 31.3% EBITDA margin 11.1% 10.5% 12.0% – EBIT 56.0 56.0 77.7 + 38.7% EBIT margin 7.8% 7.2% 8.6% – Result before income tax 46.3 48.1 69.0 + 43.6% Consolidated net result for the 34.3 32.4 48.
Slide 18: Quarterly Figures
QUARTERLY FIGURES Revenue EBIT 350 50 314 281 292 293 300 267 265 264 40 247 249 241 251 250 223 226 200 30 30.1 150 24.0 20 23.6 21.1 20.4 21.0 100 18.1 16.9 18.1 14.8 16.5 14.6 10 50 10.5 0 0 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 EBIT 6.6% 6.7% 8.0% 8.4% 7.0
Slide 19: Capital Employed
CAPITAL EMPLOYED* Net working capital (as percentage of revenue) Non-current operating assets 1000 856 800 727 194 (17%) 604 600 542 208 (20%) 496 149 (16%) 182 (19%) 400 118 (15%) 662 422 519 200 378 392 0 Q1–Q3 2011 Q1–Q3 2012 Q1–Q3 2013 Q1–Q3 2014 Q1–Q3 2015 Increase through expansion of business
Slide 20: Investments
INVESTMENTS Net investments Depreciation, amortization and impairment 52.5* 60 50 44.1 40 34.6 28.1 30.0 30 23.3 26.0 21.1 22.5 20 16.7 17.1 9.2 10 0 Q1–Q3 2010 Q1–Q3 2011 Q1–Q3 2012 Q1–Q3 2013 Q1–Q3 2014 Q1–Q3 2015 * Adjusted by acquisition of interest in SANY, total: EUR 109,978 thousand Acc. to I
Slide 21: Gearing Ratio and Equity
GEARING RATIO AND EQUITY Net debt Equity Gearing % 600 100 % 509.7 500 78.0% 464.7 381.2 75.2% 75 % 400 367.1 382.6 383.4 339.5 63.8% 300 243.2 50 % 50.0% 51.2% 200 169.8 187.9 25 % 100 0 0% Q1–Q3 2011 Q1–Q3 2012 Q1–Q3 2013 Q1–Q3 2014 Q1–Q3 2015 Equity increased by EUR 45 million Acc. to IFRS in E
Slide 22: Free Cash Flows
FREE CASH FLOWS Q1–Q3 2013 Q1–Q3 2014 Q1–Q3 2015 EBTDA 69.6 73.6 99.1 +/– Non-cash result from companies at (6.8) (1.0) (3.7) equity +/– Change in working capital (28.7) (64.8) (35.9) +/– Cash flows from tax payments (5.0) (4.7) (5.8) Cash flows from operating activities 29.1 3.1 53.7 +/– Cash flows
Slide 23: Outlook
OUTLOOK 23
Slide 24: Outlook and Objectives – Internally
OUTLOOK AND OBJECTIVES – INTERNALLY Internationalization strategy to be continued » Completion of product portfolio in all regions in the medium term » Focus on sustainable market development in China and Russia Continue pushing growth in marine business Further increase in flexibility (lean adminis
Slide 25: Outlook and Objectives – Externally
OUTLOOK AND OBJECTIVES – EXTERNALLY Heterogeneous situation in Europe, no pronounced growth dynamics Growth achieved in non-European regions, particularly in North America and Asia. Satisfactory demand in CIS in spite of difficult conditions. South America affected by shrinking market. Political ten
Slide 26: 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 statem
Slide 27: Back Up
BACK UP 27
Slide 28: Balance Sheet Structure
BALANCE SHEET STRUCTURE ASSETS LIABILITIES Equity Non-current liabilities Non-current assets Current assets Current liabilities 1400 1,225 1400 1,225 1200 1,105 1200 1,105 1000 1000 297 512 328 800 491 800 418 600 600 312 400 713 400 614 465 510 200 200 0 0 Q3 2014 Q3 2015 Q3 2014 Q3 2015 Long-ter
Slide 29: Financing Structure as at September 2015
FINANCING STRUCTURE AS AT 30 SEPTEMBER 2015 400 319 Ø Interest rate 1.91% Ø Remaining time to 3.1 years maturity Financial assets EUR 19.5m 200 Equity 41.6% 65 42 0 Maturity 2015 2016 after 2016 Acc. to IFRS in EUR million. Minor rounding differences may occur. 29
Slide 30: PALFINGER Shares
PALFINGER SHARES SHAREHOLDER STRUCTURE SHAREHOLDER INFORMATION AS AT 30 SEPT 2015 10% 1% ISIN AT0000758305 SANY Group PALFINGER AG Number of shares 37.593.258 thereof own shares 283.562 Share price as at end EUR 24.05 of period 30% free float Market capitalization EUR 904.1m Earnings per share EUR 1
Slide 31: Performance of PALFINGER Shares Since 2014
PERFORMANCE OF PALFINGER SHARES SINCE 2014 DAX ATX PALFINGER AG EUR 25.03 2 Jan 2014 2 Jan 2015 23 Oct 2015 31
Slide 32: Research Reports
RESEARCH REPORTS Berenberg Bank HSBC Deutsche Bank Kepler Cheuvreux Erste Group RCB Goldman Sachs UBS Hauck & Aufhäuser Earnings estimates – consensus (EUR million) 2015e 2016e Revenue 1,179.9 1,244.4 EBIT 94.9 108.3 Earnings per share (EUR) 1.58 1.84 32