Slide 1: Anti-cyclical investment in the marine business
PALFINGER AG Anti-cyclical investment in the marine business Presentation on the results for the third quarter of 2016 Bergheim, 27 October 2016
Slide 2: Growth despite market volatility
GROWTH DESPITE MARKET VOLATILITY REVENUE, GROWTH AND VOLATILITY (QUARTERS) LAND segment from 2009 to 2016: +133% SEA segment from 2011 to 2016: +1,146% Quarterly result Total revenue EUR 273.8m 300 +243% 2009–2015 200 EUR 117.5m Q1/2011 EUR 57.2m EUR 4.6m 2010 2011 2012 2013 2014 2015 2
Slide 3: Highlights Q1–Q3 2016
HIGHLIGHTS Q1–Q3 2016 2016 marked by revenue growth and substantial increase in earnings » Growth achieved primarily in Europe » Increase in revenue in North America, but restructuring costs negatively impact earnings » Strong demand for loader cranes in Europe » Local value creation in Russia prove
Slide 4: Change in segment reporting starting with Q3 2016
CHANGE IN SEGMENT REPORTING STARTING WITH Q3 2016 New division of reported segments acc. to IFRS from Q3 2016 onwards: LAND and SEA segments, as well as HOLDING unit Marine business contributes more than 10% (currently 13.6%) to the Group’s revenue and is PALFINGER’s strategic growth area Segments a
Slide 5: Strategy
STRATEGY 5
Slide 6: PALFINGER's business strategy
PALFINGER‘S BUSINESS STRATEGY Strategic pillars: Innovation – internationalization – flexibility Expand relevant market position on the world market in both segments Further acquisitions to strengthen marine business Completion of product portfolio in all regions Growth through higher market shares
Slide 7: The PALFINGER Group – an overview
THE PALFINGER GROUP – AN OVERVIEW Group: approx. EUR 1.3bn, approx. 10,500 employees » 39 production sites Land: approx. EUR 1bn Sea: approx. EUR 0.3bn » 8,500 employees » 1,970 employees » 5,000 service centres worldwide » 16 service centres worldwide » Number one worldwide for truck mounted » Numb
Slide 8: Strategic targets
STRATEGIC TARGETS Growth, primarily in North America, CIS, China and the marine business Completion of product portfolio in all regions Development of China into second domestic market Further expansion of market position in the marine and offshore areas Maintaining innovation leadership worldwide Q
Slide 9: Internationalization: strategic target revenue Q1–Q3 2016
INTERNATIONALIZATION STRATEGIC TARGET REVENUE Q1–Q3 2016 EUR 996.6m ASIA AND PACIFIC ASIA AND PACIFIC CIS CIS EMEA 14.61% ⅓ ⅓ AMERICAS 60.80% 24.59% ⅓ EMEA AMERICAS Minor rounding differences may occur. 9
Slide 10: LAND segment
LAND SEGMENT 10
Slide 11: Product portfolio LAND segment
PRODUCT PORTFOLIO LAND SEGMENT PALFINGER is the leading supplier of loading, lifting and handling systems Loader cranes Timber and recycling cranes Tail lifts Access platforms Hooklifts Truck mounted forklifts Railway systems Telescopic cranes 11
Slide 12: Global footprint – local value creation
GLOBAL FOOTPRINT – LOCAL VALUE CREATION 26 production sites 5,000 services centres (approx. 10,000 service staff / of which approx. 700 PALFINGER) 12
Slide 13: Highlights LAND segment
HIGHLIGHTS LAND SEGMENT Strong demand for loader cranes increases revenue by 11.4% » Growth in sales in all the regions except for South America » Increased capacity utilization of production units – also through manufacturing for third parties » Positive effect of PALFINGER Iberica » Satisfactory g
Slide 14: Financials LAND segment
FINANCIALS LAND SEGMENT Q1–Q3 2015* Q1–Q3 2016 % Revenue 772.8 861.2 +11.4% EBITDAn 109.9 135.0 +22.8% EBITDAn margin 14.2% 15.7% – EBITn 84.6 107.3 +26.8% EBITn margin 10.9% 12.5% – Restructuring costs 3.8 4.0 +5.3% * The figures were calculated retrospectively due to the change in segment reportin
Slide 15: SEA segment
SEA SEGMENT 15
Slide 16: Product portfolio SEA segment
PRODUCT PORTFOLIO SEA SEGMENT PALFINGER MARINE is the leading manufacturer of high-end deck equipment in the maritime sector Marine cranes Offshore cranes Davit Systems Boats Winches and Offshore Equipment Wind cranes After sales and service Rope access professionals 16
Slide 17: Global footprint – also in services
GLOBAL FOOTPRINT – ALSO IN SERVICES HEADQUARTER Salzburg, AUT Porto Alegre, BRA 12 production sites 16 services centres (approx. 300 PALFINGER services employees) 17
Slide 18: Acquisition of Harding
ACQUISITION OF HARDING Acquisition of Harding a milestone confirming focus on expansion of marine activities » Together with Harding, PALFINGER MARINE becomes world market leader in maritime lifesaving equipment » Harding operates a global service network (16 locations) » 800 employees, revenue of E
Slide 19: Highlights SEA segment
HIGHLIGHTS SEA SEGMENT Acquisition of Harding makes PALFINGER world market leader in maritime lifesaving equipment » Thanks to Harding, PALFINGER MARINE now offers services worldwide » Income in services business will reduce dependence on energy-sector cycles » Difficult market environment responsib
Slide 20: Financials SEA segment
FINANCIALS SEA SEGMENT Q1–Q3 2015* Q1–Q3 2016 % Revenue 126.2 135.4 +7.3% EBITDAn 14.1 7.6 (46.1%) EBITDAn margin 11.2% 5.6% – EBITn 10.9 3.2 (70.6%) EBITn margin 8.6% 2.4% – Restructuring costs 0.4 3.0 +650% * The figures were calculated retrospectively due to the change in segment reporting. Acc.
Slide 21: Key financials
KEY FINANCIALS 21
Slide 22: Key financials
KEY FINANCIALS Q1–Q3 2015* Q1–Q3 2016 % Revenue 898.9 996.6 +10.9% EBITDAn 114.3 131.1 +14.7% EBITDAn margin 12.7% 13.2% – EBITn 84.0 96.9 +15.4% EBITn margin 9.3% 9.7% – Restructuring costs 6.6 10.6 +60.6% EBIT 77.3 86.4 +11.7% Consolidated net result 48.1 49.7 +3.3% for the period Figures were adj
Slide 23: Current capital
CURRENT CAPITAL* Current Capital CC-Ratio 600 40% 500 29.5% 28.3% 28.6% 27.0% 26.9% 30% 400 308 319 300 257 275 386 20% 200 10% 100 0 0% Q1–Q3 2012 Q1–Q3 2013 Q1–Q3 2014 Q1–Q3 2015 Q1–Q3 2016 * * Average. * Normalized by acquisitions. Acc. . to IFRS in EUR million. Minor rounding differences may occ
Slide 24: Investments
INVESTMENTS Net investments Depreciation, amortization and impairment 60 55 52.5* 48.5 50 44.1 45 40 34.6 34.3 35.0 35 30.3 30 26.3 25 22.8 23.3 20 15 10 5 0 Q1–Q3 2012 Q1–Q3 2013 Q1–Q3 2014 Q1–Q3 2015 Q1–Q3 2016 * Adjusted by acquisition of interest in SANY, total: EUR 109,978 thousand Acc. to IFRS
Slide 25: Gearing ratio and equity
GEARING RATIO AND EQUITY Net debt Equity Gearing % 95.8% 600 551,9 100% 529,0 502,6 500 83.5% 458,1 76.3% 80% 375,0 400 366,1 65.4% 382,6 383,4 60% 51.3% 300 245,4 187,9 40% 200 100 20% 0 0% Q1–Q3 2012 Q1–Q3 2013 Q1–Q3 2014 Q1–Q3 2015 Q1–Q3 2016 Sound equity basis continues to increase Acc. to IFR
Slide 26: Free cash flows
FREE CASH FLOWS Q1–Q3 2014* Q1–Q3 2015 Q1–Q3 2016 EBTDA 73.8 99.0 112.0 +/– Non-cash result from (1.0) (3.7) (3.4) companies at equity +/– Change in working capital (60.8) (35.8) (13.2) +/– Cash flows from tax payments (4.7) (5.8) (23.9) Cash flows from operating activities 7.3 53.7 71.5 +/– Cash fl
Slide 27: Outlook
OUTLOOK 27
Slide 28: Outlook and objectives – internally
OUTLOOK AND OBJECTIVES – INTERNALLY Internationalization strategy to be continued » Completion of product portfolio in all regions in the medium term » Focus on sustainable market development in China and Russia » Continuation of acquisition strategy in the SEA segment Sustainable integration of Har
Slide 29: Outlook and objectives – externally
OUTLOOK AND OBJECTIVES – EXTERNALLY Visibility remains limited in Europe, but has stabilized Growth achieved primarily in Europe; restructuring in North America, satisfactory demand in CIS in spite of difficult conditions; South America affected by shrinking market, growth in China slower than expec
Slide 30: Investor Relations
INVESTOR RELATIONS Herbert Ortner, CEO Hannes Roither, Company Spokesperson Phone +43 662 2281-81001 Phone +43 662 2281-81100 h.ortner@palfinger.com h.roither@palfinger.com PALFINGER AG Lamprechtshausener Bundesstrasse 8 5101 Bergheim www.palfinger.ag This presentation contains forward-looking state
Slide 31: Backup
BACKUP 31
Slide 32: Return on capital employed
RETURN ON CAPITAL EMPLOYED NOPLAT (rolling, past 12 months)* Non-current assets & liabilities* Net working capital* Return on capital employed* % 1100 970 40% 1000 900 849 800 720 30% 600 682 700 536 578 600 449 20% 358 500 318 400 300 9.9% 9.0% 7.9% 8.2% 8.5% 10% 200 288 271 271 242 83 218 100 53 5
Slide 33: Balance sheet structure
BALANCE SHEET STRUCTURE ASSETS LIABILITIES Equity Non-current assets Current assets Non-current liabilities Current liabilities 2000 2000 1.515 1.515 1500 1.217 1500 1.217 619 441 1000 512 1000 297 417 523 500 896 500 705 503 552 0 0 Q1–Q3 2015* Q1–Q3 2016 Q1–Q3 2015* Q1–Q3 2016 * Figures were adjus
Slide 34: Financing structure as at 30 Sept 2016
FINANCING STRUCTURE AS AT 30 SEPT 2016 500 Financial liabilities (FL) EUR 594.8m 400 386 Ø Interest rate FL 1.70% Ø Remaining time to maturity FL 2.64 years 300 Cash equivalents EUR 28.3m Net debt EUR 529.0m 200 129 Equity ratio 36.4% 100 79 Gearing 95.8% Net debt/EBITDA 3.33 0 Maturity 0–1 Jahre 1–
Slide 35: PALFINGER shares: shareholder structure
PALFINGER SHARES SHAREHOLDER STRUCTURE SHAREHOLDER INFORMATION AS AT 30 SEPT 2016 10% ISIN AT0000758305 SANY Group Number of shares 37,593,258 Share price EUR 25.81 as at end of period 31% Market capitalization EUR 970.3m free float Earnings per share EUR 1.33 59% Palfinger family 35
Slide 36: Performance of PALFINGER shares since 2015
PERFORMANCE OF PALFINGER SHARES SINCE 2015 PALFINGER AG EUR 26.99 ATX DAX 2 Jan 2015 2 Jan 2016 21 Oct 2016 36