Slide 1: PALFINGER AG Presentation on the 2012 financial year
PALFINGER AG Presentation on the 2012 financial year February 2013
Slide 2: Market volatility: revenue (half year)
MARKET VOLATILITY REVENUE (HALF YEAR) AREA UNITS EUROPEAN UNITS 500 450 400 350 300 250 200 150 100 50 0 -50 2005 2006 2007 2008 2009 2010 2011 2012 Flexibility and internationality as the bases for success Acc. to IFRS in EUR million. 2
Slide 3: Highlights 2012
HIGHLIGHTS 2012 Revenue increased by 10.6% to EUR 935.2 million » Growth facilitated by regions outside Europe » Further increases in the marine business At EUR 68.5 million, EBIT remains at a satisfactory level » Stable despite costs for build-up of resources outside Europe » Structural measures co
Slide 4: Strategy
STRATEGY 4
Slide 5: 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 container handling systems » Leading specialist in timber and recycling cranes, tail lifts, truck mounted forklifts and high-tech railway sy
Slide 6: Strategic objectives 2017
STRATEGIC OBJECTIVES 2017 Growth, primarily in BRIC countries Development of China into second domestic market Global balance of production and proximity to customers Consolidation of leading position in the marine and offshore areas Maintaining innovation leadership worldwide Meeting customers’ exp
Slide 7: Internationalization
INTERNATIONALIZATION REVENUE 2008 REVENUE 2012 14.1% 34.0% AREA UNITS AREA UNITS 85.9% 66.0% EUROPEAN UNITS EUROPEAN UNITS 7
Slide 8: Successful market entry in China with the Sany Group
SUCCESSFUL MARKET ENTRY IN CHINA WITH THE SANY GROUP Sany Palfinger with site in Ningxiang » Production and distribution of PALFINGER products in China » Construction of separate plant planned » Establishment of a sales and services network Palfinger Sany with registered seat in Salzburg » Distribut
Slide 9: Acquisition of Bergen Group Dreggen AS
ACQUISITION OF BERGEN GROUP DREGGEN AS (DREGGEN) Takeover agreed upon on 30 Oct 2012 Tailor-made crane solutions for the shipbuilding, oil and gas industries (expansion of the PALFINGER portfolio) Strong position in Norway, renowned international customers Revenue 2012: approx. EUR 25 million; 75 em
Slide 10: Segments
SEGMENTS 10
Slide 11: Segment financials
SEGMENT FINANCIALS SEGMENT REVENUE 2011 2012 % EUROPEAN UNITS 621.7 617.0 (0.8%) AREA UNITS 223.9 318.2 + 42.1% VENTURES – – – SEGMENT EBIT 2011 2012 % EUROPEAN UNITS 80.1 74.2 (7.3%) AREA UNITS (1.1) 11.0 – VENTURES (10.3) (15.1) (46.7%) Acc. to IFRS in EUR million. Minor rounding differences may o
Slide 12: European Units segment
EUROPEAN UNITS SEGMENT Increasing decline in demand in Europe Business units showed heterogeneous development » Access platforms, truck mounted forklifts and railway systems recorded revenue increases » Distinct declines in loader cranes, EPSILON timber and recycling cranes and container handling sy
Slide 13: Area Units segment
AREA UNITS SEGMENT Revenue increased by 42.1%, positive EBIT Strong growth in North America Establishment of new products in South America; further increases expected Further development in Asia marked by market entry in China First achievements in India; expansion of local value creation Tremendous
Slide 14: Ventures unit
VENTURES UNIT Implementation of partnership with Chinese Sany Group » Joint ventures approved in Q3, operations started Further development of the Indian, South American and Russian regions » Acquisition of Tercek (BR) Expansion of Marine business area » Acquisition of Dreggen (NO) Continuation of c
Slide 15: Key financials
KEY FINANCIALS 15
Slide 16: Financial highlights
FINANCIAL HIGHLIGHTS 2010 2011 2012 % Revenue 651.8 845.7 935.2 + 10.6% EBITDA 59.9 96.8 98.0 + 1.2% EBITDA margin 9.2% 11.4% 10.5% – EBIT 37.1 67.9 68.5 + 0.8% EBIT margin 5.7% 8.0% 7.3% – Result before income tax 29.8 57.0 53.7 (5.7%) Consolidated net result for the period 24.2 42.0 40.4 (3.7%) Di
Slide 17: Quarterly figures
QUARTERLY FIGURES Revenue EBIT 241 247 250 223 222 224 223 50 210 187 192 200 40 168 168 150 129 30 117 100 20 20.9 19.5 50 16.5 17.7 16.5 10 13.5 15.1 15.5 14.8 11.0 9.1 0 3.6 0 0.9 -50 -10 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 EBIT 0.8% 2.7% 6.5% 5.4% 7.2% 7
Slide 18: Capital employed
CAPITAL EMPLOYED* Net working capital (in relation to revenue) Non-current operating assets 600 552 501 500 460 462 151 (16%) 119 (14%) 400 359 152 (30%) 118 (18%) 300 85 (11%) 200 382 401 308 344 274 100 0 2008 2009 2010 2011 2012 Increase through expansion of business volume, relation to revenue
Slide 19: Investments
INVESTMENTS Net investments Depreciation, amortization, and impairment 50 47.3 40.8 40 28.7 28.8 29.5 30 23.7 21.5 22.7 18.7 20 15.9 10 0 2008 2009 2010 2011 2012 Investments to support further development of the areas Acc. to IFRS in EUR million. Minor rounding differences may occur. 19
Slide 20: Gearing ratio and equity
GEARING RATIO AND EQUITY Net debt Equity Gearing % 400 364.9 100% 352.8 350 309.9 319.9 292.3 300 75% 217.6 250 59.6% 166.9 200 166.8 53.8% 50% 151.9 52.0% 160.9 50.3% 47.3% 150 100 25% 50 0 0% 2008 2009 2010 2011 2012 Debt financed for the long term and still at a moderate level Acc. to IFRS in E
Slide 21: Financing structure as at 31 December 2012
FINANCING STRUCTURE AS AT 31 DECEMBER 2012 200 181 Ø Interest rate 3.08% 150 Ø Remaining time to maturity 3.26 years Financial assets EUR 24.5m 100 Equity ratio 44.8% 43 50 21 0 Maturity 2013 2014 after 2014 Acc. to IFRS in EUR million. Minor rounding differences may occur. 21
Slide 22: Free cash flows
FREE CASH FLOWS 2010 2011 2012 EBTDA 52.6 85.6 82.8 +/– Non-cash result from companies at equity 1.5 (7.9) (1.9) +/– Change in working capital (1.2) (28.7) (12.8) +/– Cash flows from tax payments (3.8) (11.3) (12.7) Cash flows from operating activities 49.1 37.7 55.4 +/– Cash flows from investing ac
Slide 23: Palfinger shares
PALFINGER SHARES SHAREHOLDER STRUCTURE SHAREHOLDER INFORMATION AS AT 28 DECEMBER 2012 5% 1% Delta Lloyd PALFINGER AG ISIN AT0000758305 29% Number of shares 35,730,000 free float thereof own shares 340,590 Share price as at EUR 16.44 end of period Market capitalization EUR 587.4m Earnings per share E
Slide 24: Outlook
OUTLOOK 24
Slide 25: Outlook and objectives – internally
OUTLOOK AND OBJECTIVES – INTERNALLY Internationalization strategy to be continued » Focus on BRIC countries, expansion of product portfolio in the areas Expansion of the China joint ventures Growth boost in the Marine business area Further increase in flexibility Research, development and innovation
Slide 26: Outlook and objectives – externally
OUTLOOK AND OBJECTIVES – EXTERNALLY Weak economic development in Europe Market growth in non-European regions expected, primarily in BRIC countries Persistent volatility in demand noticeable Slight revenue growth expected for 2013 26
Slide 27: Research reports
RESEARCH REPORTS Berenberg Bank Hauck & Aufhäuser Cheuvreux HSBC Deutsche Bank Kepler Erste Group RCB Goldman Sachs UBS Earnings estimates – consensus (EUR million) 2013e 2014e Revenue 982.4 1,058.8 EBIT 79.0 93.7 Earnings per share (EUR) 1.34 1.63 27
Slide 28: 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 www.palfinger.ag This presentation contains forward-looking stateme