Slide 1: PALFINGER AG Presentation on the first half of 2014
PALFINGER AG Presentation on the first half of 2014 Vienna, 7 August 2014
Slide 2: Herbert Ortner, CEO
HERBERT ORTNER, CEO 2
Slide 3: 5 Continents – 7 Oceans
5 CONTINETS – 7 OCEANS EMEA Loader cranes NORTH AMERICA Timber and recycling Loader cranes cranes CIS Timber and recycling cranes Tail lifts Loader cranes Tail lifts Access platforms Timber and recycling cranes Access platforms Container handling Container handling systems Container handling systems
Slide 4: Ongoing market volatility: revenue, growth and volatility
ONGOING MARKET VOLATILITY REVENUE, GROWTH AND VOLATILITY (HALF YEAR) AREA UNITS from 2006 to 2014: + 385% EUROPEAN UNITS from 2006 to 2014: + 62% 550 163.1m 500 450 400 350 377.0m 33.6m 300 250 232.5m 200 150 100 + 61% – 51% + 106% 50 0 -50 2006 2007 2008 2009 2010 2011 2012 2013 2014 Internationali
Slide 5: Highlights HY1
HIGHLIGHTS HY1 HY1 satisfactory in light of economic situation » Internationalization proved its worth, growth achieved primarily in Europe » Growth boost in Marine business area » Leading market position expanded further Increase in revenue of 13.7% to EUR 540.1 million EBIT rose by 4.9% to EUR 41.
Slide 6: Strategic highlights HY1
STRATEGIC HIGHLIGHTS HY1 Joint venture in China » Sales development highly satisfactory » Construction of new production plant near Shanghai about to be completed » Start of operations in the fourth quarter of 2014 » Cross shareholding with SANY completed HIDRO-GRUBERT » Minority shareholding in Arg
Slide 7: Strategic objectives 2017
STRATEGIC OBJECTIVES 2017 Growth, primarily in BRIC countries Completion of product portfolio in all regions 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 innovat
Slide 8: Strategy
STRATEGY 8
Slide 9: 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 10: Internationalization (1)
INTERNATIONALIZATION (1) STRATEGIC TARGET REVENUE HY1 2014 ASIA & PACIFIC ASIA & PACIFIC CIS CIS EMEA 13.4% ⅓ ⅓ AMERICAS 25.9% 60.7% ⅓ AMERICAS EMEA 10
Slide 11: Internationalization (2): revenue 2009 vs HY1 2014
INTERNATIONALIZATION (2) REVENUE 2009 REVENUE HY1 2014 3.2% 2.1% 5.0% 4.1% REST OF EUROPE AFRICA AND REST OF AFRICA AND CIS 0.4% MIDDLE EAST EUROPE MIDDLE EAST FAR EAST 3.5% CIS 4.3% 7.0% 9.1% CENTRAL AND FAR EAST SOUTH AMERICA 12.3% 7.6% NORTH AMERICA CENTRAL AND SOUTH AMERICA 18.3% 51.6% 71.7% NOR
Slide 12: Segments
SEGMENTS 12
Slide 13: Segment financials
SEGMENT FINANCIALS SEGMENT REVENUE HY1 2013 HY1 2014 % EUROPEAN UNITS 320.9 377.0 + 17.5% AREA UNITS 154.2 163.1 + 5.8% VENTURES – – – SEGMENT EBIT HY1 2013 HY1 2014 % EUROPEAN UNITS 44.7 46.8 + 4.8% AREA UNITS 3.8 2.8 (27.7%) VENTURES (8.8) (8.4) + 3.7% Acc. to IFRS in EUR million. Minor rounding d
Slide 14: European Units segment
EUROPEAN UNITS SEGMENT Still a mixed picture in Europe, but strong increase in revenue of 17.5% » Business units Loader Cranes, EPSILON, Railway Systems and Production posted increases » Other business units stagnated or recorded declines in revenue » Germany, Austria, Switzerland and the Netherland
Slide 15: Area Units segment
AREA UNITS SEGMENT Revenue increased by 5.8% » North America marked by harsh winter, Q2 extremely successful again » South America suffered losses caused by exchange rate developments and reduction in public funding » Asia reported substantial increases, sales in China above budget » New production
Slide 16: Ventures unit
VENTURES UNIT Focus on integration of companies acquired in 2013 » Cross shareholding with SANY » Interest in HIDRO-GRUBERT » Preparation of integration of PM-Group » Introduction of access platforms in China » Consolidation of Marine and Systems/Megarme » Preparation of further acquisitions for the
Slide 17: Key Financials, Christoph Kaml, CFO
KEY FINANCIALS CHRISTOPH KAML, CFO 17
Slide 18: Key figures
KEY FIGURES HY1 2012 HY1 2013 HY1 2014 % Revenue 465.1 475.1 540.1 + 13.7% EBITDA 52.2 54.0 58.1 + 7.5% EBITDA margin 11.2% 11.4% 10.8% – EBIT 37.2 39.1 41.0 + 4.9% EBIT margin 8.0% 8.2% 7.6% – Result before income tax 31.8 32.2 35.6 + 10.5% Consolidated net result for the 23.9 24.7 24.6 (0.3%) peri
Slide 19: Quarterly figures
QUARTERLY FIGURES Revenue EBIT 300 273 50 265 268 241 247 249 241 250 223 222 224 223 226 40 210 200 30 150 20 100 20.9 21.1 20.1 20.9 19.5 18.1 18.1 16.5 17.7 16.5 16.9 15.5 14.8 10 50 0 0 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 EBIT 9.4% 7.8% 7.0% 7.9% 8.1% 6.
Slide 20: Capital employed
CAPITAL EMPLOYED* Net working capital (in relation to revenue) Non-current operating assets 705 700 600 600 542 200 (19%) 458 488 500 176 (19%) 157 (18%) 400 114 (15%) 136 (25%) 300 424 505 200 373 385 322 100 0 HY1 2010 HY1 2011 HY1 2012 HY1 2013 HY1 2014 Increase through expansion of business volu
Slide 21: Investments
INVESTMENTS Net investments Depreciation, amortization and impairment 35 30.7* 30 25 20.2 20 16.7 17.1 14.1 15.0 14.9 15 10.4 10.1 10 6.6 5 0 HY1 2010 HY1 2011 HY1 2012 HY1 2013 HY1 2014 * Adjusted by acquisition of interest in SANY, total: EUR 140,716 thousand Acc. to IFRS in EUR million Minor roun
Slide 22: Gearing ratio and equity
GEARING RATIO AND EQUITY Net debt Equity Gearing % 500 460.9 100 % 400 360.7 375.6 344.0 313.3 327.9 74.6% 75 % 300 239.7 63.8% 194.5 53.9% 50 % 200 157.9 50.4% 163.4 49.8% 25 % 100 0 0% HY1 2010 HY1 2011 HY1 2012 HY1 2013 HY1 2014 Î Equity increased by 22.7% Acc. to IFRS in EUR million Minor roundi
Slide 23: Free cash flows
FREE CASH FLOWS HY1 2012 HY1 2013 HY1 2014 EBTDA 46.8 47.1 52.4 +/– Non-cash result from companies at (1.0) (5.3) 0.9 equity +/– Change in working capital (30.4) (13.8) (45.2) +/– Cash flows from tax payments (3.6) (4.2) (2.9) Cash flows from operating activities 11.8 23.8 5.2 +/– Cash flows from in
Slide 24: Outlook, Herbert Ortner, CEO
OUTLOOK HERBERT ORTNER, CEO 24
Slide 25: Outlook and objectives – internally
OUTLOOK AND OBJECTIVES – INTERNALLY Internationalization strategy to be continued » Completion of product portfolio » Focus on China and Russia Joint management of Marine business area Further increase in flexibility » Processes in production and administration, fixed-cost control » Reducing complex
Slide 26: Outlook and objectives – externally
OUTLOOK AND OBJECTIVES – EXTERNALLY Economic situation in Europe remains heterogeneous, marked by uncertainty Growth expected in regions outside Europe, but political tensions influence customers’ investment behaviour Î Once again, record revenue is planned 26
Slide 27: 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 28: Back Up
BACK UP 28
Slide 29: Balance sheet structure
BALANCE SHEET STRUCTURE ASSETS LIABILITIES Curent liabilities Non-current assets Non-current liabilities Current assets Equity 1500 1500 1.085 1.085 1000 865 1000 865 317 498 236 433 308 500 500 254 432 587 376 461 0 0 HY1 2013 HY1 2014 HY1 2013 HY1 2014 Acc. to IFRS in EUR million Minor rounding di
Slide 30: Financing structure as at June 2014
FINANCING STRUCTURE AS AT 30 JUNE 2014 250 217 Ø Interest rate 2.48% 200 Ø Remaining time to maturity 2.5 years 150 99 Financial assets EUR 24.0m 100 52 Equity ratio 42.5% 50 0 Maturity 2014 2015 after 2015 Acc. to IFRS in EUR million Minor rounding differences may occur. 30
Slide 31: PALFINGER shares
PALFINGER SHARES SHAREHOLDER STRUCTURE SHAREHOLDER INFORMATION AS AT 30 JUNE 2014 10% 1% ISIN AT0000758305 SANY Group PALFINGER AG Number of shares 37,593,258 thereof own shares 291,968 Share price as at end EUR 26.80 of period 30% free float Market capitalization EUR 1,007.5 m Earnings per share EU
Slide 32: Performance of PALFINGER shares since 2013
PERFORMANCE OF PALFINGER SHARES SINCE 2013 200 180 160 PALFINGER AG 140 EUR 24.81 DAX 120 100 ATX 80 2 Jan 2013 2 Jan 2014 25 July 2014 32