Slide 1: Things are looking up
PALFINGER AG Things are looking up Presentation on the 2010 financial year Vienna, 23 February 2011
Slide 2: Herbert Ortner, CEO
Herbert Ortner, CEO
Slide 3: 2007–2010 in fast motion: Things are looking up
2007–2010 in fast motion: Things are looking up Reduction in fixed costs Cutbacks in temporary workers Strengthening of structure of Further reduction in Short-time assets and earnings, current capital work ended fixed cost savings employed Market contraction in Cutbacks in core Share price PALFINGE
Slide 4: Highlights 2010
Highlights 2010 • Market recovery continued in 2010 • Revenue of EUR 651.8 million was 29.0% higher than in 2009 Acquisitions contributed around 7% to revenue • Positive impact of structural and cost-related measures on result • EBITDA increased from EUR 16.4 million to EUR 57.4 million • Exceptio
Slide 5: Strategy
Strategy
Slide 6: PALFINGER at a glance
PALFINGER at a glance • Leading international manufacturer of hydraulic lifting, loading, and handling systems for commercial vehicles Number one in knuckle boom cranes, timber and recycling cranes, and hookloaders Number two in tail lifts and transportable forklifts Leading specialist in high
Slide 7: Strategic highlights 2010
Strategic highlights 2010 • Strengthening of structure of earnings and assets Comprehensive programme completed in 2009 • Focus in 2010: Reduction of current capital employed increases financial flexibility • 3 acquisitions, funded from operating cash flows Acquisition of ETI strengthens market
Slide 8: New business unit Marine Systems
New business unit Marine Systems • Majority stakeholding in Ned-Deck Marine (75%) in Q3 Market leader in the standard segment of rescue boat davits Core markets: Netherlands, Norway, India, USA Major target markets: Japan, Korea, China, Vietnam • Acquisition of the marine and wind energy divis
Slide 9: Internationalisation
Internationalisation Revenue 2009 Revenue 2010 19.9% 26.5% AREA UNITS AREA UNITS 80.1% 73.5% EUROPEAN UNITS EUROPEAN UNITS 9
Slide 10: Strategic objectives 2015
Strategic objectives 2015 • Diversification will be limited to the core competences • Further increase in flexibility becomes a priority (strategic pillar) • Internationalisation directed towards future markets (Russia, Asia) • Innovation as basis for enhancement of products and services Catering
Slide 11: Martin Zehnder, COO
Martin Zehnder, COO
Slide 12: Flexibility
Flexibility • Increasing market volatility (regions and industries) • Structures must allow for quick responses • Flexibility of the entire value-creation chain to be raised Basis: New organisational structure since 2010 Procurement: Master agreements with strategic suppliers Production: Order
Slide 13: 29 production locations
29 production locations Salzburg/AUT Lengau/AUT Köstendorf/AUT Elsbethen/AUT Ainring/GER Löbau/GER Ganderkesee/GER Krefeld/GER Seifhennersdorf/GER Ebersbach/GER Barneveld/NED Welwyn Garden City/GBR Cadelbosco/ITA Caussade/FRA Delnice/CRO Maribor/SLO Tenevo/BUL Cherven Brjag/BUL Lazuri/ROU Tiffin/USA
Slide 14: Product portfolio
Product portfolio • Truck-mounted knuckle boom cranes • MADAL telescopic cranes • EPSILON timber and recycling cranes • OMAHA STANDARD truck bodies • Marine cranes (incl. davits) • Cranes for offshore wind energy plants • PALIFT/OMAHA STANDARD hookloaders • RAILWAY rail transport system solutions •
Slide 15: Segments – Wolfgang Pilz, CMO
Segments Wolfgang Pilz, CMO
Slide 16: PALFINGER organisational structure
PALFINGER organisational structure EUROPEAN UNITS AREA UNITS VENTURES segment segment segment • Area EMEA • Area North America (Business units Knuckle Boom • Area South America Cranes, Timber and Recycling Cranes, Tail Lifts, Access • Area Asia and Pacific Platforms, Hookloaders, • Area India Transp
Slide 17: Segment financials
Segment financials Segment revenue 2010 2009 % EUROPEAN UNITS 479.2 404.9 + 18.4% AREA UNITS 172.6 100.5 + 71.8% VENTURES – – – Segment result 2010 2009 % EUROPEAN UNITS 52.7 11.3 + 366.0% AREA UNITS (7.6) (10.1) + 25.0% VENTURES (7.7) (4.2) (83.1%) Acc. to IFRS in million EUR. Minor rounding differ
Slide 18: EUROPEAN UNITS
EUROPEAN UNITS • Recovery in important sales markets, 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 recorded in access platforms and hookloaders • Clear
Slide 19: AREA UNITS
AREA UNITS • Rise in revenue of 71.8% 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 20: VENTURES
VENTURES • Coordination of the CC-Top (current capital) project • Three important acquisitions completed in 2010 • Establishment of an assembly site in India • Additional projects for the expansion of the AREA UNITS segment underway • Strategic corporate planning 2011–2015 20
Slide 21: Key financial figures – Christoph Kaml, CFO
Key financial figures Christoph Kaml, CFO
Slide 22: Financial highlights
Financial highlights 2010 2009 2008 Revenue 651.8 505.4 794.8 EBITDA 57.4 16.4 97.8 EBITDA margin 8.8% 3.3% 12.3% EBIT 34.7 (5.0) 69.1 EBIT margin 5.3% (1.0%) 8.7% Result before income tax 29.8 (11.9) 63.9 Consolidated net result for the period 24.2 (7.8) 43.9 Acc. to IFRS in million EUR. Minor roun
Slide 23: Quarterly figures
Quarterly figures Revenue EBIT 250 215 50 209 191 184 188 187 200 168 168 40 140 129 129 150 119 117 30 29.5 29.8 100 26.3 20 50 15.3 10 10.1 8.8 12.3 0 0 (5.6) 1.0 3.4 -50 (3.3) (2.6) (0.2) -10 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 EBIT 13.8% 14.1% 13.9% 8.3%
Slide 24: Capital employed
Capital employed*) Net Working Capital Non-current operating assets 477 492 500 444 114 400 373 170 133 300 252 131 200 99 378 306 311 100 242 154 0 2006 2007 2008 2009 2010 Net working capital reduced significantly *) As of the reporting date. Acc. to IFRS in million EUR. Minor rounding differences
Slide 25: Return on capital employed
Return on capital employed NOPLAT Capital Employed Return on Capital Employed % 476.7 492.2 500 443.8 50% 373.1 400 40% 252.2 300 25.7% 30% 25.7% 13.1% 200 20% 100 62.3 80.3 6.9% 10% 55.6 0.0% 0 0% (0.1) 32.5 -100 -10% 2006 2007 2008 2009 2010 Acc. to IFRS in million EUR. Minor rounding differences
Slide 26: Investment
Investment Investment in property, plant, and equipment Depreciation, amortisation, and impairment 70 61.4 60 50 46.5 40 28.7 30 22.7 21.4 21.5 20 15.1 15.6 14.6 8.0 10 0 2006 2007 2008 2009 2010 Investment programme 2006–2008 completed Acc. to IFRS in million EUR. Minor rounding differences may occ
Slide 27: Gearing ratio and equity
Gearing ratio and equity Net debt Equity Gearing % 331.4 350 60% 295.1 53.8% 309.9 292.3 300 50% 242.0 52.0% 250 48.6% 40% 200 166.8 160.9 26.7% 151.9 30% 150 20% 100 78.7 4.2% 50 10% 10.2 0 0% 2006 2007 2008 2009 2010 Gearing below 50% threshold in spite of acquisitions Acc. to IFRS in million EUR.
Slide 28: Balance sheet structure
Balance sheet structure Assets Liabilities Current assets Current liabilities Non-current assets Non-current liabilities Equity 800 677 800 677 588 588 600 600 297 162 275 132 400 400 184 163 200 381 200 313 292 331 0 0 2009 2010 2009 2010 Long-term financial structure Acc. to IFRS in million EUR. M
Slide 29: Cash flow
Cash flow 2010 2009 2008 EBTDA 54.1 10.6 90.8 +/– Cash flows from working capital (1.2) 41.5 (32.5) +/– Cash flows from tax payments (3.8) (2.1) (25.7) Cash flows from operating activities 49.1 50.0 32.6 +/– Cash flows from investing activities (54.1) (15.9) (77.1) Cash flows after changes in workin
Slide 30: PALFINGER share
PALFINGER share Shareholder structure Shareholder information as of 30 December 2010 ISIN AT0000758305 5% 1% Aviva plc PALFINGER AG Number of shares 35,730,000 Share price as of EUR 28.75 29% end of period free float Market capitalisation EUR 1,027.2m 65% Palfinger family 30
Slide 31: Outlook – Herbert Ortner, CEO
Outlook Herbert Ortner, CEO
Slide 32: Outlook and objectives – internally
Outlook and objectives – internally • Market recovery increases visibility • Continued increase in flexibility as a material factor of success • Integration of the new area marine and wind energy • Investment in market activities and strong network will be continued • Further steps towards growth in
Slide 33: Outlook and objectives – externally
Outlook and objectives – externally • At present, positive macroeconomic development expected • Upward trend in major markets likely to continue • Revenue growth of around 20% striven for in 2011 Exceptional increase in earnings expected to continue 33
Slide 34: 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 5020 Salzburg Fax: +43 662 46 84-2280 This presentation contains forward-lookin
Slide 35: Back-up
Back-up
Slide 36: Performance of the PALFINGER share since 2010
Performance of the PALFINGER share since 2010 200 180 PALFINGER AG 160 EUR 26.87 140 DAX 120 ATX 100 80 60 4 Jan 2010 3 Jan 2011 18 Feb 2011 36
Slide 37: Financing structure as of 31 December 2010
Financing structure as of 31 December 2010 100 Ø Interest rate 4.28% 80 Ø Remaining time to 63 2.07 years 61 maturity 60 56 Financial assets EUR 15.08m 40 Equity ratio 48.9% 20 0 Maturity < 1 year up to > 2 years 2 years Acc. to IFRS in million EUR. Minor rounding differences may occur. 37
Slide 38: 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) 2011e 2012e Revenue 781.3 870.2 EBIT 83.7 111.6 Earnings per share (EUR) 1.50 2.11 38
Slide 39: Financial calendar 2011
Financial calendar 2011 30 March 2011 Annual General Meeting 10 May 2011 Publication of results for the first quarter 2011 10 August 2011 Publication of results for the first half 2011 Publication of results for the 10 November 2011 first three quarters 2011 Additional dates such as trade fairs or r