Slide 1: Balance Sheet Presentation for the Year 2019
BALANCE SHEET PRESENTATION FOR THE YEAR 2019 Bergheim, April 1, 2020
Slide 2: Andreas Klauser, CEO
ANDREAS KLAUSER CEO PALFINGER Balance sheet presentation 2019 2
Slide 3: 2019 at a glance
2019 at a glance WE SET NEW RECORDS AND MADE COURSE-SETTING DECISIONS Revenue exceeded EUR 1.75 billion Record consolidated net profit for the period of EUR 80 million – an increase of 38.1 percent GPO successfully implemented Systematic investments in future-proof structures, greater transparency,
Slide 4: PALFINGER at a glance
PALFINGER at a glance OUR EMPLOYEES AND INTERNATIONAL LOCATIONS MAKE OUR POSITION AS THE MARKET LEADER POSSIBLE GROUP LAND SEA REVENUE EUR 1.75 billion EUR 1.56 billion EUR 0.19 billion EMPLOYEES 11,126 9,630 1,496 33 Production plants Around 5,000 25 SITES service centersworldwide Service locations
Slide 5: Operating highlights
Operating highlights IN 2019, PALFINGER INVESTED IN ITS EMPLOYEES AND NETWORK AND DEVELOPED NEW CUSTOMER SOLUTIONS Green light for the PALFINGER Campus in Lengau (AT), our training and education center Further worldwide expansion of the distribution and service network STRUCINSPECT – the first marke
Slide 6: General conditions on the market
General conditions on the market WE ARE KEEPING A CLOSE EYE ON THE VARIOUS DEVELOPMENTS IN OUR MARKETS Divergent economic environment 2019 Economic environment in EMEA characterized by sharp price rivalries and slight market decline The construction industry in the NAM region recorded stable growth,
Slide 7: Strategic guardrails
Strategic guardrails WE ENSURE THE FUTURE SUCCESS OF THE COMPANY WITH A CLEAR STRATEGIC ORIENTATION Vision and Brand promise strategy and leadership Together we are making our Together we place the focus on customers’ lifting solutions our customers and guarantee fit for the future. a PALFINGER bran
Slide 8: The result is the success of our customers
The result is the success of our customers WE DEVELOP INNOVATIONS FROM THE SYNTHESIS OF UNDERSTANDING OUR CUSTOMERS AND TECHNOLOGY AREAS OF INNOVATION AUTONOMOUS SYSTEMS ECOLOGICAL SYSTEMS All-in-one solutions Smart Boom Control CONNECTED PALFINGER ALTERNATIVE HANDLING PALFINGER Connected, SOLUTIONS
Slide 9: Understanding our customers points the way
Understanding our customers points the way WE UNDERSTAND THE VARIOUS NEEDS AND REQUIREMENTS OF OUR CUSTOMER SEGMENTS Construction Industry Railway Offshore Wind Aquaculture & Fishing Forestry & Agriculture Transport & Logistics Waste Mgmt. & Recycling Passenger Commercial Infrastructure Public Secto
Slide 10: Technology as motor
Technology as motor PALFINGER OFFERS ITS CUSTOMERS A HIGHLY EFFECTIVEAND INNOVATIVE PORTFOLIO OF LIFTING SOLUTIONS SEA LOADER HOOKLIFTS & MARINE TIMBER/RECYCLING TAIL LIFTS OFFSHORE CRANES CRANES SKIPLOADERS CRANES PASSENGER ACCESS TRUCK MOUNTED RAILWAY WIND CRANES DAVITS SYSTEMS PLATFORMS FORKLIFTS
Slide 11: Excellent service
Excellent service PALFINGER SETS BENCHMARKS IN SERVICE WITH FAST AND EFFECTIVE CUSTOMER SUPPORT GLOBAL NETWORK PREVENTATIVE High standards of quality MAINTENANCE through training. Maintenance and regular service promote the longevity of products and ensure maximum security. BEST POSSIBLE INTELLIGENT
Slide 12: Entrepreneurial responsibility
Entrepreneurial responsibility SUSTAINABLE ACTION IS THE CORE DRIVER OF PALFINGER’S LONG-TERM COMPETITIVENESS Eco-efficiency in Responsible employer production Sustainable products Fair business New HSEQ structure Photovoltaic concept Investments in Global processes and implemented implement
Slide 13: We synchronize and focus our energy
2019 We synchronize and focus our energy. 2020 This additional clout secures further customer utility. PALFINGER Balance sheet presentation 2019 13
Slide 14: Felix Strohbichler, CFO
FELIX STROHBICHLER CFO PALFINGER Balance sheet presentation 2019 14
Slide 15: Segment Sales and Service Land
SEGMENT SALES AND SERVICE LAND PALFINGER Balance sheet presentation 2019 15
Slide 16: Increase in segment revenue of 12.7 percent
Segment Sales & Service LAND INCREASE IN SEGMENT REVENUE OF 12.7 PERCENT Increase in revenue driven by the product lines 1 Cranes, Timber, and Recycling as well as Hooklifts Change in the product and regional mix; EBIT margin 2 below prior-year value as a result Market environment in EMEA strong des
Slide 17: Strong revenue growth, but shift in mix
Segment Sales & Service LAND STRONG REVENUE GROWTH, BUT SHIFT IN MIX EUR million 20181) 2019 Δ% External revenue 1,285.6 1,448.4 +12.7% EBITDA 161.2 175.9 +9.1% EBIT 145.0 155.0 +6.9% EBIT margin 11.3% 10.7% – 1) Prior-year figures were retroactively adjusted to the new segment structure. Slight dif
Slide 18: Segment Operations Land
SEGMENT OPERATIONS LAND PALFINGER Balance sheet presentation 2019 18
Slide 19: Production capacity was well-utilized in 2019
Segment Operations LAND PRODUCTION CAPACITY WAS WELL-UTILIZED IN 2019 Supply situation for the internal 1 assembly plants eased up Production for third parties: Revenue stable despite 2 difficult market environment – margins under pressure First go-live of the global F2F standard process 3 templates
Slide 20: Economic environment leads to decreasing margins for third-party production
Segment Operations LAND ECONOMIC ENVIRONMENT LEADS TO DECREASING MARGINS WITH RESPECT TO PRODUCTION FOR THIRD PARTIES EUR million 20181) 2019 Δ% External revenue 113.8 113.0 –0.7% EBITDA 63.3 64.4 +1.7% EBIT 32.9 31.7 –3.7% 1) Prior-year figures were retroactively adjusted to the new segment structu
Slide 21: Segment SEA
SEGMENT SEA PALFINGER Balance sheet presentation 2019 21
Slide 22: Operationally significant improvement
Segment SEA OPERATIONALLY SIGNIFICANT IMPROVEMENT Restructuring largely completed – 1 Segment operationally positive beginning with the 2nd half of 2019 Distribution joint venture Neptune puts us in the pole 2 position in the dynamic lifesaving equipment market for Chinese cruise ships Decrease in r
Slide 23: Second half-year operationally positive despite decline in incoming orders
Segment SEA SECOND HALF-YEAR OPERATIONALLY POSITIVE DESPITE CLEAR DECLINE IN INCOMING ORDERS EUR million 2018 2019 Δ% External revenue 216.3 192.5 –11.0% EBITDA –9.3 6.7 +172.0% EBIT –29.1 –8.2 +71.8% EBIT margin –13.4% –4.3% – PALFINGER Balance sheet presentation 2019 23
Slide 24: Holding Unit
HOLDING UNIT PALFINGER Balance sheet presentation 2019 24
Slide 25: Creation of future-proof structures through systematic investments
HOLDING unit CREATION OF FUTURE-PROOF STRUCTIONS THROUGH SYSTEMATIC INVESTMENTS Implementation of the GPO associated with 1 higher structural costs Focus on group-wide initiatives such as PALFINGER 2 Process Excellence and PALFINGER 21st 3 Substantial benefit anticipated in subsequent years PALFINGE
Slide 26: Creation of future-proof structures associated with additional expenses
HOLDING unit CREATION OF FUTURE-PROOF STRUCTURES ASSOCIATED WITH ADDITIONAL EXPENSES EUR million 20181) 2019 Δ% EBITDA –18.4 –23.4 –27.2% EBIT –21.8 –29.5 –35.3% 1) Prior-year figures were retroactively adjusted to the new segment structure. Slight differences due to rounding are possible in accorda
Slide 27: PALFINGER Group
PALFINGER GROUP PALFINGER Balance sheet presentation 2019 27
Slide 28: We set new records for revenue, EBIT and consolidated net profit in 2019
PALFINGER Group WE SET NEW RECORDS FOR REVENUE, EBIT AND CONSOLIDATED NET PROFIT IN 2019 EUR million 2018 2019 Δ% Revenue 1,615.6 1,753.8 +8.6% EBITDA 196.7 223.6 +13.7% EBITDA margin 12.2% 12.8% – EBIT (operating result) 127.0 149.0 +17.4% EBIT margin 7.9 % 8.5 % – EBT (earnings before tax) 111.0 1
Slide 29: We invested extensively in our viability also in the past year
PALFINGER Group WE INVESTED EXTENSIVELY IN OUR VIABILITY ALSO IN THE PAST YEAR 160 EUR million 139.6 140 120 100 95.7 90.8 1) 71.4 69.8 74.6 80 68.3 60.4 60 49.9 41.0 40 20 0 2015 2016 2017 2018 2019 Net investments Depreciation, amortization and impairment 1) Including additions from leasing (IFRS
Slide 30: We were able to further increase ROCE
PALFINGER Group WE WERE ABLE TO FURTHER INCREASE ROCEAND WILL SOON ACHIEVE OUR GOAL 1.200 1,113 20% 1,059 1,048 976 1.000 835 15% 800 9.6% 9.9% 600 8.1% 8.5% 10% 400 5% 200 1.7% 0 0% 1) 2) 2015 2016 2017 2018 2019 Capital employed3) Return on capital employed4) 1) Including 2017 restatement. 2) Incl
Slide 31: Stable balance sheet structure with a positive trend
PALFINGER Group STABLE BALANCE SHEET STRUCTURE WITH A POSITIVE TREND EUR million 12/31/2018 12/31/20191) Financial liabilities (FL) 580.4 591.8 Ø interest rate of financial 1.69% 1.69%2) liabilities Ø maturity of financial 4.21 years 4.51 years liabilities Cash and cash equivalents 34.7 42.0 Net fin
Slide 32: Balance sheet metrics improved despite IFRS 16
PALFINGER Group BALANCE SHEET METRICS IMPROVED DESPITE IFRS 16 12/31/2018 12/31/2019 Equity ratio 36.4% 38.3% Gearing ratio 92.8% 83.6% Net debt/EBITDA 2.62 2.35 Slight differences due to rounding are possible in accordance with IFRS. PALFINGER Balance sheet presentation 2019 32
Slide 33: Higher free cash flow owing to improved earnings and sale of interest in Sany
PALFINGER Group HIGHER FREE CASH FLOW OWING TO IMPROVED EARNINGS SITUATION AND SALE OF INTEREST IN SANY EUR million 2018 2019 EBTDA 180.8 207.7 +/– Non-cash income from companies accounted for using the equity –4.0 –14.0 method +/– Change in working capital –10.9 +5.1 +/– Cash flow from tax payments
Slide 34: Andreas Klauser, CEO
ANDREAS KLAUSER CEO PALFINGER Balance sheet presentation 2019 34
Slide 35: Outlook 2020
Outlook 2020 Systematic investments in future-proof structures and products Consistent utilization of new market entries in the Segment SEA Slightly positive incoming orders trend with the earliest effective delivery in the second quarter of 2020 OUTLOOK Unique understanding of our customers in orde
Slide 36: Seven weeks plan - average plant utilization
SEVEN WEEKS PLAN - AVERAGE PLANT UTILIZATION PALFINGER Balance sheet presentation 2019 36
Slide 37: 2022 financial targets
2022 financial targets WE CAME CLOSER TO ACHIEVING OUR AMBITIOUS GOALS AND CONTINUE TO WORK CONSISTENTLY ON REACHING THEM 2022 FINANCIAL TARGETS #1 MARKET LEADER FOR LIFTING SOLUTIONS EUR 2 billion 10% Average EBIT margin 10% Average ROCE Revenue as a result of over the economic cycle over the econo
Slide 38: Together we are shaping the future of our customers' lifting solutions
TOGETHER WE ARE SHAPING THE FUTURE OF OUR CUSTOMERS’ LIFTING SOLUTIONS
Slide 39: Investor relations and press contact
INVESTOR RELATIONS AND PRESS CONTACT ANDREAS KLAUSER FELIX STROHBICHLER PALFINGER AG CEO CFO Lamprechtshausener Bundesstraße 8 5101 Bergheim +43 662 2281-81006 +43 662 2281-81008 a.klauser@palfinger.com f.strohbichler@palfinger.com www.palfinger.ag HANNES ROITHER Company Spokesperson +43 662 2281-81