Slide 1: Presentation on the first half of 2013
PALFINGER AG Presentation on the first half of 2013 Vienna, 8 August 2013
Slide 2: Herbert Ortner, CEO
HERBERT ORTNER, CEO 2
Slide 3: Ongoing market volatility
ONGOING 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 2013 Î Flexibility and internationality as bases for success Acc. to IFRS in EUR million. 3
Slide 4: Highlights HY1
HIGHLIGHTS HY1 HY1 highly pleasing, given the difficult economic situation » Internationalization has proven successful, growth takes place outside Europe » Growth boost in Marine business area » Leading market position solidified Revenue increased by 2.2% to EUR 475.1 million EBIT raised by 5.2% to
Slide 5: Strategic highlights HY1
STRATEGIC HIGHLIGHTS HY1 Joint venture in China » First orders received after dealer conference » Construction project for production hall to be launched shortly Palfinger Dreggen » Offshore cranes have been expanding portfolio since acquisition in Q4 2012 » 2 orders totalling approx. EUR 90 million
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: Strategy
STRATEGY 7
Slide 8: 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 9: Internationalization
INTERNATIONALIZATION REVENUE HY1 2012 REVENUE HY1 2013 32.0% 32.5% AREA UNITS AREA UNITS 68.0% 67.5% EUROPEAN UNITS EUROPEAN UNITS 9
Slide 10: Segments
SEGMENTS 10
Slide 11: Segment financials
SEGMENT FINANCIALS SEGMENT REVENUE HY1 2012 HY1 2013 % EUROPEAN UNITS 316.0 320.9 + 1.5% AREA UNITS 149.0 154.2 + 3.5% VENTURES – – – SEGMENT EBIT HY1 2012 HY1 2013 % EUROPEAN UNITS 43.5 44.7 + 2.7% AREA UNITS 3.0 3.8 + 27.4% VENTURES (7.6) (8.8) (15.9%) Acc. to IFRS in EUR million. Minor rounding d
Slide 12: European Units segment
EUROPEAN UNITS SEGMENT Economic environment remains difficult in Europe » Business units Railway Systems and Production posted increases » Other business units recorded declines in revenue Global Marine business area compensates declines in Europe » Offshore cranes (Palfinger Dreggen) since December
Slide 13: Area Units segment
AREA UNITS SEGMENT Revenue increased by 3.5% » Positive trend in North America continues » South America as a growth market; also due to additional product groups » Asia recorded substantial increases, still at a low level » Weak environment noticeable in India, expansion will be continued » Capacit
Slide 14: Ventures unit
VENTURES UNIT Focus on further internationalization » Development of the regions India, South America, Russia and the Marine business area » Potential acquisitions and partnerships Continuation of cost-related and structural programmes 14
Slide 15: Key financials – Christoph Kaml, CFO
KEY FINANCIALS CHRISTOPH KAML, CFO 15
Slide 16: Financial highlights
FINANCIAL HIGHLIGHTS HY1 2011 HY1 2012 HY1 2013 % Revenue 414.3 465.1 475.1 + 2.2% EBITDA 50.1 52.2 54.0 + 3.6% EBITDA margin 12.1% 11.2% 11.4% – EBIT 36.0 37.2 39.1 + 5.2% EBIT margin 8.7% 8.0% 8.2% – Result before income tax 30.1 31.8 32.2 + 1.2% Consolidated net result for the period 22.6 23.9 24
Slide 17: Quarterly figures
QUARTERLY FIGURES Revenue EBIT 241 247 249 250 223 222 224 223 226 50 210 187 192 200 168 168 40 150 30 100 20 20.9 19.5 21.1 16.5 17.7 16.5 18.1 50 13.5 15.1 15.5 14.8 10 11.0 9.1 0 0 -50 -10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 EBIT 6.5% 5.4% 7.2% 7.9% 9.4%
Slide 18: Capital employed
CAPITAL EMPLOYED* Net working capital (in relation to revenue) Non-current operating assets 600 600 542 469 458 488 500 176 (19%) 157 (18%) 400 114 (15%) 162 (25%) 136 (25%) 300 200 373 385 424 307 322 100 0 HY1 2009 HY1 2010 HY1 2011 HY1 2012 HY1 2013 Increase through expansion of business volume,
Slide 19: Investments
INVESTMENTS Net investments Depreciation, amortization and impairment 25 20.2 20 16.7 14.1 15.0 14.9 15 11.0 10.4 10.1 10 7.1 6.6 5 0 HY1 2009 HY1 2010 HY1 2011 HY1 2012 HY1 2013 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 % 400 360.7 375.6 100% 350 313.3 327.9 288.4 300 239.7 75% 250 157.9 194.5 63.8% 163.4 200 170.8 59.2% 50% 53.9% 150 50.4% 49.8% 100 25% 50 0 0% HY1 2009 HY1 2010 HY1 2011 HY1 2012 HY1 2013 Î Promissory note loan (Q4 2012) invested into growth Acc. to
Slide 21: Free cash flows
FREE CASH FLOWS HY1 2011 HY1 2012 HY1 2013 EBTDA 44.2 46.8 47.1 +/– Non-cash result from companies at equity 0.7 (1.0) (5.3) +/– Change in working capital (27.5) (30.4) (13.8) +/– Cash flows from tax payments (2.3) (3.6) (4.2) Cash flows from operating activities 15.1 11.8 23.8 +/– Cash flows from i
Slide 22: Outlook – Herbert Ortner, CEO
OUTLOOK HERBERT ORTNER, CEO 22
Slide 23: Outlook and objectives – internally
OUTLOOK AND OBJECTIVES – INTERNALLY Internationalization strategy to be continued » Focus on Brazil, Russia, Marine business area Further development of the joint venture in China Growth potential in Marine business area Further increase in flexibility » Processes in production and administration »
Slide 24: Outlook and objectives – externally
OUTLOOK AND OBJECTIVES – EXTERNALLY Economic situation in Europe remains weak, marked by uncertainty Growth expected in regions outside Europe Limited visibility, but positive trends noticeable Î Slight revenue growth still expected for 2013 24
Slide 25: 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
Slide 26: Back up
BACK UP 26
Slide 27: Balance sheet structure
BALANCE SHEET STRUCTURE ASSETS LIABILITIES Current liabilities Current assets Non-current liabilities Non-current assets Equity 1000 1000 865 865 799 799 236 433 234 408 500 500 204 254 391 432 361 376 0 0 HY1 2012 HY1 2013 HY1 2012 HY1 2013 Long-term financial structure, Î promissory note placed in
Slide 28: Financing structure as at June 2013
FINANCING STRUCTURE AS AT 30 JUNE 2013 200 185 Ø Interest rate 3.04% 150 Ø Remaining time to maturity 2.76 years Financial assets EUR 14.6m 100 Equity ratio 43.4% 47 50 22 0 Maturity 2013 2014 after 2014 Acc. to IFRS in EUR million. Minor rounding differences may occur. 28
Slide 29: Palfinger shares
PALFINGER SHARES SHAREHOLDER STRUCTURE SHAREHOLDER INFORMATION AS AT 30 JUNE 2013 1% PALFINGER AG ISIN AT0000758305 34% Number of shares 35,730,000 free float thereof own shares 328,090 Share price as at EUR 22.00 end of period Market capitalization EUR 786.1m Earnings per share EUR 0.70 65% Palfing
Slide 30: Performance of Palfinger shares since 2012
PERFORMANCE OF PALFINGER SHARES SINCE 2012 220 200 PALFINGER AG 180 EUR 23.44 160 140 DAX 120 ATX 100 80 2 Jan 2012 2 Jan 2013 26 July 2013 30
Slide 31: Research reports
RESEARCH REPORTS Berenberg Bank HSBC Deutsche Bank Kepler Cheuvreux Erste Group RCB Goldman Sachs UBS Hauck & Aufhäuser Earnings Estimates – consensus (EUR million) 2013e 2014e Revenue 1,011.0 1,102.4 EBIT 87.4 107.1 Earnings per share (EUR) 1.48 1.82 31
Slide 32: Financial calendar 2013/14
FINANCIAL CALENDAR 2013/14 8 November 2013 Publication of results for the first three quarters of 2013 17 February 2014 Balance sheet press conference 12 March 2014 Annual General Meeting 14 March 2014 Ex-dividend day 18 March 2014 Dividend payment day 7 May 2014 Publication of results for the first