Slide 1: PALFINGER AG: Record year with exceptional increase in earnings
PALFINGER AG Record year with exceptional increase in earnings Presentation on the 2011 financial year February 2012
Slide 2: Market volatility
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 Importance of flexibility and internationality is increasing Acc. to IFRS in EUR million. 2
Slide 3: Highlights 2011 (1)
Highlights 2011 (1) • Further increase in revenue of 30% – historic record • Exceptionally strong increase in earnings: EBIT + 83% • Internationalization and flexibility support sustainable growth High growth rates outside Europe (Brazil, North America, Asia) CIS becomes important market for PAL
Slide 4: Highlights 2011 (2)
Highlights 2011 (2) • PALFINGER once again outperformer in its industry • Growth achieved in nearly all product areas and regions Great success in the field of offshore wind energy • Basis created for maintaining the high level in the years to come • Proposed dividend: EUR 0.38 per share 4
Slide 5: Strategy
Strategy
Slide 6: PALFINGER at a glance
PALFINGER at a glance • Leading international manufacturer of innovative lifting, loading and handling systems Number one in knuckle boom cranes, timber and recycling cranes and hookloaders Number two in tail lifts and transportable forklifts Leading specialist in high-tech railway system solu
Slide 7: Strategic objectives 2015
Strategic objectives 2015 • Diversification will be limited to the core competences • Further increase in flexibility is a priority (strategic pillar) • Internationalization directed towards future markets (Russia, Asia) • Innovation as basis for enhancement of products and services Catering to re
Slide 8: Strategic highlights 2011
Strategic highlights 2011 • Innovation: Research and development a priority Development of a new crane series Product adjustments to meet specific regional requirements Further development in the field of electronics and mechatronics • Internationalization: Focus on future markets Assembly a
Slide 9: Internationalization
Internationalization Revenue 2006 Revenue 2011 12.5% 26.5% AREA UNITS AREA UNITS 87.5% 73.5% EUROPEAN UNITS EUROPEAN UNITS 9
Slide 10: Internationalization in figures
Internationalization in figures Revenue Europe/EMEA Non-European revenue + 203% 622 + 489% 224 456 205 64 38 1999 2005 2011 1999 2005 2011 Acc. to IFRS in EUR million. Minor rounding differences may occur. 10
Slide 11: INMAN acquisition
INMAN acquisition • Leading Russian crane manufacturer (Republic of Bashkortosan) Approx. 400 employees Revenue 2011: EUR 20.5 million • Local value creation and recognized product • Expansion of sales and service network In particular in the Ural region • Initial consolidation with effect fro
Slide 12: 28 production sites
28 production sites Lengau/AUT Köstendorf/AUT Elsbethen/AUT Löbau/GER Ganderkesee/GER Krefeld/GER Seifhennersdorf/GER Barneveld/NED Welwyn Garden City/GBR Cadelbosco/ITA Caussade/FRA Maribor/SLO Delnice/CRO Skrljevo/CRO Lazuri/ROU Tenevo/BUL Cherven Brjag/BUL Ishimbay/RUS Niagara Falls/CAN Tiffin/US
Slide 13: 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 14: Flexibility
Flexibility • Increasing market volatility (regions and industries) • Structures must allow for quick responses • Flexibility at all value-creation levels to be raised Basis: New organizational structure since 2010 Procurement: Master agreements with strategic suppliers Production: Order-based
Slide 15: Segments
Segments
Slide 16: Segment financials
Segment financials Segment revenue 2010 2011 % EUROPEAN UNITS 479.2 621.8 + 29.8% AREA UNITS 172.6 223.9 + 29.7% VENTURES – – – Segment EBIT 2010 2011 % EUROPEAN UNITS 52.7 80.1 + 51.9% AREA UNITS (7.6) (1.1) + 85.5% VENTURES (7.7) (10.3) (33.0%) Acc. to IFRS in EUR million. Minor rounding differenc
Slide 17: EUROPEAN UNITS segment
EUROPEAN UNITS segment • Revenue increased by 30% Increases in nearly all product areas, particulary in cranes Business unit Marine Systems contributed approx. 1/3 to this increase Stagnation in railway systems • Hoodloaders sustainably profitable • Segment EBIT increased from EUR 53 million t
Slide 18: AREA UNITS segment
AREA UNITS segment • Revenue increased by 30%, success achieved reflected in earnings Additional one-time effect from acquisitions • Strong upward trend, particularly in North America • Establishment of new products in South America • Strong growth in Asia, still at a low level • Distribution cont
Slide 19: VENTURES unit
VENTURES unit • Continuation of cost-related and structural programmes • Acquisition of INMAN completed • Intensive development of strategic options for China 19
Slide 20: Key financial figures
Key financial figures
Slide 21: Financial highlights
Financial highlights 2009 2010 2011 % Revenue 505.4 651.8 845.7 + 29.7% EBITDA 18.5 59.9 96.8 + 61.6% EBITDA margin 3.7% 9.2% 11.4% – EBIT (3.0) 37.1 67.9 + 82.8% EBIT margin (0.6%) 5.7% 8.0% – Result before income tax (11.9) 29.8 57.0 + 91.1% Consolidated net result for the period (7.8) 24.2 42.0 +
Slide 22: Quarterly figures
Quarterly figures Revenue EBIT (incl. associated companies) 250 223 222 50 210 200 188 187 192 40 168 168 140 129 129 150 119 117 30 100 20 20.9 50 15.1 16.5 15.5 10 13.5 11.0 9.1 0 0 3.6 (1.5) 0.3 0.9 -50 (4.4) (2.7) -10 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11
Slide 23: Capital employed
Capital employed* Net working capital (in relation to revenue) Non-current operating assets 600 520 477 481 500 444 373 103 (16%) 134 (16%) 400 170 (21%) 133 (26%) 300 131 (19%) 200 378 386 306 311 100 242 0 2007 2008 2009 2010 2011 Increase due to business expansion, relation to revenue constant *
Slide 24: Return on capital employed
Return on capital employed NOPLAT Capital employed Return on capital employed % 600 50% 519.6 476.7 480.7 500 443.8 40% 400 373.1 30% 25.7% 300 13.1% 20% 200 11.1% 80.3 7.1% 10% 100 55.6 0.0% 55.5 0 0% (0.1) 32.7 -100 -10% 2007 2008 2009 2010 2011 Acc. to IFRS in EUR million. Minor rounding differen
Slide 25: Investment
Investment Investment in property, plant, and equipment Depreciation, amortization, and impairment 70 61.4 60 50 46.5 40 28.7 28.8 30 21.5 22.7 15.6 18.6 20 14.6 8.0 10 0 2007 2008 2009 2010 2011 Acc. to IFRS in EUR million. Minor rounding differences may occur. 25
Slide 26: Gearing ratio and equity
Gearing ratio and equity Net debt Equity Gearing % 352.8 60% 350 309.9 292.3 319.9 295.1 53.8% 300 50% 52.0% 50.3% 250 47.3% 40% 200 166.8 160.9 166.9 26.7% 151.9 30% 150 78.7 20% 100 50 10% 0 0% 2007 2008 2009 2010 2011 Gearing below 50 per cent Acc. to IFRS in EUR million. Minor rounding differenc
Slide 27: Balance sheet structure
Balance sheet structure Assets Liabilities Current liabilities Current assets Non-current liabilities Non-current assets Equity 800 740 800 740 677 677 600 600 162 226 296 348 400 400 195 161 200 381 392 200 353 320 0 0 2010 2011 2010 2011 Long-term financial structure; promissory note loan due in 2
Slide 28: Financing structure as at 31 December 2011
Financing structure as at 31 December 2011 100 95 Ø Interest rate 4.13% 80 Ø Remaining time to 1.74 years 63 maturity 60 Financial assets EUR 15.1m 40 30 Equity ratio 47.7% 20 0 Maturity < 1 year up to > 2 years 2 years Acc. to IFRS in EUR million. Minor rounding differences may occur. 28
Slide 29: Free cash flows
Free cash flows 2009 2010 2011 EBTDA 9.6 52.6 85.6 +/– Cash flows from companies at equity 1.0 1.5 (7.9) +/– Cash flows from working capital 41.5 (1.2) (28.7) +/– Cash flows from tax payments (2.1) (3.8) (11.3) Cash flows from operating activities 50.0 49.1 37.7 +/– Cash flows from investing activit
Slide 30: PALFINGER share
PALFINGER share Shareholder structure Shareholder information as at 30 December 2011 ISIN AT0000758305 5% 1% Delta Lloyd PALFINGER AG Number of shares 35,730,000 thereof own shares 368,840 29% Share price as at free float EUR 12.33 end of period Market capitalization EUR 440.6m 65% Palfinger family
Slide 31: Outlook
Outlook
Slide 32: Outlook and objectives – internally
Outlook and objectives – internally • Internationalization strategy to be continued Focus on Asia, particularly China, and Russia Expansion of product portfolio in the areas • Further increase in flexibility throughout all units • Complexity management is a priority • Research, development and i
Slide 33: Outlook and objectives – externally
Outlook and objectives – externally • High level of uncertainty in the financial markets impacts real economy • Situation for PALFINGER clearly better than in 2008/09 • Strong fourth quarter signals continued good order situation • Market growth in non-European regions expected PALFINGER strives to
Slide 34: Research reports
Research reports Berenberg Bank Hauck & Aufhäuser Cheuvreux HSBC Deutsche Bank RCB Erste Group UBS Goldman Sachs Earnings estimates – consensus (in EUR million) 2012e 2013e Revenue 806.5 865.3 EBIT 62.0 78.8 Earnings per share (EUR) 1.03 1.43 34
Slide 35: Financial calendar 2012
Financial calendar 2012 3 February 2012 Balance sheet press conference 16 February 2012 Publication of Annual Report 2011 8 March 2012 Annual General Meeting 12 March 2012 Ex-dividend day 14 March 2012 Dividend payment day Publication of results 10 May 2012 for the first quarter of 2012 Publication
Slide 36: 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 37: Backup
Backup
Slide 38: Performance of the PALFINGER share since 2010
Performance of the PALFINGER share since 2010 200 180 160 140 120 100 DAX PALFINGER AG 80 EUR 12.33 ATX 60 4 Jan 2010 3 Jan 2011 30 Dec 2011 38