Slide 1: Balance Sheet Presentation for the Record Year
BALANCE SHEET PRESENTATION FOR THE RECORD YEAR Vienna, February 24, 2022 1
Slide 2: Andreas Klauser, CEO
PALFINGER ANDREAS KLAUSER CEO
Slide 3: 90 Years — Vision and Strategy 2030
PALFINGER 90 Years — Vision and Strategy 2030 CELEBRATING THE FUTURE SINCE 1932 We started as a small workshop For generations, we have Our pioneering spirit in Austria 90 years ago and pushed boundaries and built a and our values continued to develop strong company together are the basis of our suc
Slide 4: PALFINGER at a Glance
PALFINGER at a Glance NUMBER 1 IN THE WORLD 1 Global market leader with revenues of EUR 1.84 billion in 2021 Present in all regions with 34 production sites and around 5,000 service centers Around 11,700 employees Revenue split 2021: 62% EMEA 20% NAM 5% LATAM 6% APAC 7% CIS 24/02/22 PALFINGER Balanc
Slide 5: Industry diversity ensures success
The right solution for every challenge INDUSTRY DIVERSITY ENSURES SUCCESS Construction Industry Railway Offshore Wind Aquaculture & Fishing Forestry & Agriculture Transport & Logistics Waste Mgmt. & Recycling Passenger Cargo Infrastructure Public Sector Offshore Oil & Gas 24/02/22 PALFINGER Balance
Slide 6: Our answer to the megatrends of the future
PALFINGER 90 Years — Vision and Strategy 2030 OUR ANSWER TO THE MEGATRENDS OF THE FUTURE SUSTAINABILITY DIGITIZATION SOCIAL CHANGE VISION & STRATEGY 2030 24/02/22 PALFINGER Balance Sheet Presentation 2021 6
Slide 7: Lifting Value – Creating Momentum
PALFINGER 90 Years — Vision and Strategy 2030 VISION & STRATEGY 2030 LIFTING VALUE – CREATING MOMENTUM PALFINGER uses As a leading technology digitization and new With Vision 2030, PALFINGER company, PALFINGER technologies to customize its actively focuses its corporate develops solutions with added
Slide 8: Key pillars of our Strategy 2030
Vision & Strategy 2030 KEY PILLARS OF OUR STRATEGY 2030 Go for Solutions 01 Go Digital 02 STRONG STRONG COMMITMENT TO Based on: ROOTS BRAND SUSTAINABILITY 8
Slide 9: Sustainable transformation
Sustainability SUSTAINABLE TRANSFORMATION SUSTAINABILITY COUNCIL ENSURES IMPLEMENTATION OF STRATEGY 9
Slide 10: Turning Point - Our sustainability pillars
Sustainability TURNING POINT - OUR SUSTAINABILITY PILLARS FOR THE LIVING PLANET WE FOR ALL THE PEOPLE FOR THE FUTURE-FORWARD ALL DEPEND ON WE TOUCH WAY OF DOING BUSINESS Less emissions Safe & healthy Committed to for positive impact on every level our values Positive impact on Qualified & diverse Ev
Slide 11: 2021 Record Year for PALFINGER
2021 at a glance 2021 RECORD YEAR FOR PALFINGER RECORD REVENUE AND VISIBILITY UNTIL Q3 2022 STRESSED SUPPLY CHAINS EARNINGS DESPITE DUE TO FULL ORDER AND RECORD LEVEL MATERIAL STRONG HEADWIND BOOK COSTS AS LIMITING FACTORS 24/02/22 PALFINGER Balance Sheet Presentation 2021 11
Slide 12: A lot happened in 2021
Key events in 2021 A LOT HAPPENED IN 2021 Quick return to normal operation after the cyberattack end of January 2021 PALFINGER World Tour, Dealer Conference and Expo Dubai as important dealer and customer events Acquisition of Equipdraulic in Spain and Hinz in Sweden, as well as TSK Kran und Wechsel
Slide 13: Martin Zehnder, COO
MARTIN ZEHNDER COO 24/02/22 PALFINGER Balance Sheet Presentation 2021
Slide 14: Targeted actions to secure the supply chain
Supply Chain TARGETED ACTIONS TO SECURE THE SUPPLY CHAIN CHALLENGE ACTION 1 Supply bottlenecks SCM task force implemented 2 Long lead times S&OP 3 Cost increases Transparency & price adjustments 4 Approval of new suppliers & components Additional technical resources; Reinforcement of procurement 5 G
Slide 15: Securing the supply chain with strong partners
Operations SECURING THE SUPPLY CHAIN WITH STRONG PARTNERS PROCUREMENT OPERATIONS LOGISTICS ▪ Strong partnerships in the ▪ High flexibility in the event of ▪ Make or buy as a key regions for the regions material shortages competence ▪ High transparency due to ▪ Capacity and resource ▪ Flexible priori
Slide 16: PALFINGER invests in all regions
Investments per Region PALFINGER INVESTS IN ALL REGIONS NAM CIS Automation projects for Capacity expansion, manufacturing components in especially for stiff boom cranes our production plants at the Ishimbai site EMEA MARINE Further investments in Capacity expansion and welding robots and new product
Slide 17: Go for Solutions - from product provider to solution provider
Vision & Strategy 2030 GO FOR SOLUTIONS - FROM PRODUCT PROVIDER TO SOLUTION PROVIDER CLOSER TO THE ACES MORE SERVICES CUSTOMER AUTONOM JOB TO BE CONNECTED SMART DONE ECO EFFICIENT SOLUTIONS SOLUTIONS GO FOR SOLUTIONS 24/02/22 PALFINGER Balance Sheet Presentation 2021 17
Slide 18: We drive digitization holistically
PALFINGER 90 Years — Vision and Strategy 2030 WE DRIVE DIGITIZATION HOLISTICALLY DATA & Enterprise Architecture Business models Customers, Process Partners and Employees Smart Lifting organization Solutions Supply chain IT CORE & DIGITAL BACKBONE GO Foundation of the digital organization DIGITAL 24/
Slide 19: Success in product management, engineering and supply chain means...
. Supply Chain SUCCESS IN PRODUCT MANAGEMENT, ENGINEERING AND SUPPLY CHAIN MEANS... ... offering sustainable ... working with first- ... developing a resilient ... attracting and solutions for our class partners and supply chain. retaining qualified customers. building long-term employees. partnersh
Slide 20: Felix Strohbichler, CFO
FELIX STROHBICHLER CFO 24/02/22 PALFINGER Balance Sheet Presentation 2021
Slide 21: Segment Sales & Service
SEGMENT SALES & SERVICE Vision and Strategy 2030 24/02/22 PALFINGER Balance Sheet Presentation 2021
Slide 22: Tailwind due to high market demand
Segment Sales & Service TAILWIND DUE TO HIGH MARKET DEMAND 1 Very good market environment in all global regions, especially LATAM and CIS PALFINGER benefits from the positive conditions, especially in the 2 construction industry, forestry and recycling 3 Record order intake and consequent record ord
Slide 23: Outperforms record year 2019
Segment Sales & Service OUTPERFORMS RECORD YEAR 2019 in EUR million 20191) 2020 2021 Δ% External revenue 1,641.5 1,443.4 1,705.1 18.1 % EBITDA 182.6 166.0 205.1 +23.6 % EBIT 148.4 118.6 166.5 +40.4 % EBIT margin 9.0 % 8.2 % 9.8 % – 1) Figures adjusted retroactively to the new segment reporting struc
Slide 24: Segment Operations
SEGMENT OPERATIONS Vision and Strategy 2030 24/02/22 PALFINGER Balance Sheet Presentation 2021
Slide 25: Full capacity utilization - unstable supply chain
Segment OPERATIONS FULL CAPACITY UTILIZATION - UNSTABLE SUPPLY CHAIN 1 Go Live SAP S/4 Hana with over 1,200 users at 8 locations Good economic environment leads to record revenue 2 in manufacturing for third parties 3 Output limited by material, personnel and capacity bottlenecks Unstable supply cha
Slide 26: Record revenue in manufacturing for third parties
Segment OPERATIONS RECORD REVENUE IN MANUFACTURING FOR THIRD PARTIES in EUR million 20191) 2020 2021 Δ% External revenue 112.3 90.5 136.4 +50.7 % EBITDA 64.8 39.0 56.8 +45.6 % EBIT 30.0 4.2 20.3 +483.3 % 1) Figures adjusted retroactively to the new segment reporting structure. 24/02/22 PALFINGER Bal
Slide 27: Unit Holding
UNIT HOLDING Vision and Strategy 2030 24/02/22 PALFINGER Balance Sheet Presentation 2021
Slide 28: PALFINGER invests in forward-looking projects
HOLDING unit PALFINGER INVESTS IN FORWARD-LOOKING PROJECTS in EUR million 2019 2020 2021 Δ% EBITDA -23.8 -16.3 -18.2 +11.7 % EBIT -29.4 -22.5 -31.8 +41.3 % 24/02/22 PALFINGER Balance Sheet Presentation 2021 28
Slide 29: PALFINGER Group
PALFINGER GROUP Vision and Strategy 2030 24/02/22 PALFINGER Balance Sheet Presentation 2021
Slide 30: Top marks in revenue, result and dividend
PALFINGER Group TOP MARKS IN REVENUE, RESULT AND DIVIDEND Δ% in EUR million 2019 2020 2021 2020/21 Revenue 1,753.8 1,533.9 1,841.5 +20.1 % EBITDA 223.6 188.7 243.7 +29.1 % EBIT (operating result) 149.0 100.3 155.0 +54.5 % EBIT margin 8.5 % 6.5 % 8.4 % - Consolidated net result 80.0 49.8 86.6 +73.9 %
Slide 31: Planned growth requires massive investment program
PALFINGER Group PLANNED GROWTH REQUIRES MASSIVE INVESTMENT PROGRAM 140 121.8 120 1) 100 90.8 88.4 88.7 80 74.6 68.2 60 40 20 0 2019 2020 2021 Net investments Depreciation, amortization and impairment 1) Including additions from leasing (IFRS 16); excluding divestment of 2.5% from Sany Lifting Soluti
Slide 32: Excellent interest level — improving further due to upcoming refinancing
PALFINGER Group EXCELLENT INTEREST LEVEL — IMPROVING FURTHER DUE TO UPCOMING REFINANCING in EUR million Dec. 31, 2019 Dec. 31, 2020 Dec. 31, 2021 Financial liabilities (FV) 1) 591.8 524.8 537.0 Avg. interest debt 2) 1.69 % 1.33 % 1.13 % Avg. remaining term debt 4.51 years 4.01 years 2.43 years Net d
Slide 33: Net debt / EBITDA ratio target reached
PALFINGER Group NET DEBT / EBITDA RATIO TARGET REACHED Dec. 31, Dec. 31, Dec. 31, 2019 2020 2021 Equity ratio 38.3 % 39.6 % 36.3 % Gearing 83.6 % 64.4 % 77.6 % Net debt/EBITDA 2.35 2.10 1.96 In accordance with IFRS, slight rounding differences possible. 24/02/22 PALFINGER Balance Sheet Presentation
Slide 34: ROCE increases towards target of 12 percent
PALFINGER Group ROCE INCREASES TOWARDS TARGET OF 12 PERCENT 1,200 1,113 1,084 20% 1,052 1,000 15% 800 11.2% 9.9% 600 10% 6.9% 400 5% 200 0 1) 1) 1) 0% 2019 2020 2021 1) Including additions from leases (IFRS 16). 2) Average of the last 12 months. Capital Employed2) 3) ROCE = Ratio of NOPLAT and avera
Slide 35: Inventory build-up and high investments lead to negative free cash flow
PALFINGER Group INVENTORY BUILD-UP AND HIGH INVESTMENTS LEAD TO NEGATIVE FREE CASH FLOW in EUR million 2019 2020 2021 EBTDA 207.7 173.5 233.5 +/- non-cash income from at-equity companies -14.0 -4.0 -23.9 +/- change in working capital +5.1 +71.0 -90. +/- cash flow from tax payments -42.8 -15.8 -31.6
Slide 36: Reversal of cross-holding increases room for maneuver
SANY - reversal of cross-holding REVERSAL OF CROSS-HOLDING INCREASES ROOM FOR MANEUVER 1 Successful cooperation in the future market of China will be continued - 4,000 cranes were sold in China and revenue of around EUR 80 million was achieved in 2021 2 Reducing complexity, focusing on core business
Slide 37: Significant events after the balance sheet date
Significant Events SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE Massive cost increases and unstable supply chain mean that in the first two Profit warning quarters of 2022 EBIT is expected to be significantly below the value of the same on January 20, 2022 periods in the previous year. Price incr
Slide 38: Outlook 2022
OUTLOOK 2022 ANDREAS KLAUSER CEO 38
Slide 39: EUR 2.0 billion revenue target for 2022
Outlook 2022 EUR 2.0 BILLION REVENUE TARGET FOR 2022 Positive market environment and full order books create good visibility up to Q3 2022 Material costs at a historic peak in the first half of 2022 Tense situation regarding the availability of materials, components and vehicle chassis Growth target
Slide 40: Financial targets 2024
FINANCIAL TARGETS 2024 #1 Market Leader for Crane and Lifting Solutions EUR 2.3 billion 10% 12% Revenue from EBIT margin ROCE organic growth 24/02/22 PALFINGER Balance Sheet Presentation 2021 40
Slide 41: Ambitious revenue target for 2030
AMBITIOUS REVENUE TARGET FOR 2030 #1 Market Leader for Crane and Lifting Solutions EUR 3.0 billion EUR 3.0 billion Revenue from organic Market capitalization growth 24/02/22 PALFINGER Balance Sheet Presentation 2021 41
Slide 42: Stay healthy!
STAY HEALTHY! 24/02/22 PALFINGER Balance Sheet Presentation 2021
Slide 43: Investor relations and press contact
INVESTOR RELATIONS AND PRESS CONTACT ANDREAS KLAUSER FELIX STROHBICHLER HANNES ROITHER CEO CFO GROUP SPOKESPERSON +43 662 2281-81008 +43 662 2281-81006 +43 662 2281-81100 a.klauser@palfinger.com f.strohbichler@palfinger.com h.roither@palfinger.com PALFINGER AG Lamprechtshausener Bundesstraße 8 Diese