Slide 1: Presentation on the 2018 Financial Year
Vienna, 19 February 2019 PRESENTATION ON THE 2018 FINANCIAL YEAR
Slide 2: Andreas Klauser, CEO
PALFINGCR ANDREAS KLAUSER CEO
Slide 3: 2018 highest revenue in history; 2019 stepping up the pace
2018 The PALFINGER GROUP posted the highest revenue in its history. 2019 We are stepping up the pace for more record years. 3
Slide 4: World's leading supplier of lifting solutions
THE PALFINGER GROUP IS THE WORLD’S LEADING SUPPLIER OF LIFTING SOLUTIONS. 4
Slide 5: Our numbers underscore our position as market leader
OUR NUMBERS UNDERSCORE OUR POSITION AS MARKET LEADER. GROUP LAND SEA REVENUE EUR 1.6 billion EUR 1.4 billion EUR 0.2 billion EMPLOYEES 10,780 8,899 1,528 35 5,000 35 LOCATIONS production sites service centres worldwide service centres worldwide 58% EMEA REVENUE 24% Americas DISTRIBUTION 18% Asia and
Slide 6: 2018 was the highest revenue year in the company's history
2018 WAS THE HIGHEST REVENUE YEAR IN THE COMPANY’S HISTORY WE HAVE POSITIONED OURSELVES STRATEGICALLY FOR A SUCCESSFUL FUTURE. FACTS & FIGURES RE-ALIGNMENT ORGANIZATION Revenue rose by 9.8% to a new peak in PALFINGER 21st produced first Management team PALFINGER’s history: EUR 1.6 billion smart solu
Slide 7: Markets are undergoing change and face enormous challenges
THE MARKETS ARE UNDERGOING CHANGE AND ARE FACED WITH ENORMOUS CHALLENGES ECONOMIC DOWNTURN COMPETITORS PURSUE COINCIDES WITH STRONG AGGRESSIVE INDUSTRY IS UNDER INCREASE IN SHORTAGE INCREASE IN VOLATILITY GROWTH STRATEGIES PRESSURE TO DIGITALIZE OF SKILLED LABOUR 7
Slide 8: The new Global PALFINGER Organization (GPO) is our response
THE NEW GLOBAL PALFINGER ORGANIZATION (GPO) IS OUR RESPONSE TO THESE CHALLENGES. EFFICIENCY SYNERGIES INTEGRATION GROWTH CUSTOMER FOCUS ONE TEAM – ONE CULTURE IMPLEMENTATION 8
Slide 9: GPO means reducing costs and enhancing quality
GPO MEANS REDUCING COSTS AND ENHANCING QUALITY – FOR LONG-TERM CORPORATE SUCCESS. 1 Group-wide R&D guarantees synergies 2 Focus on local customer requirements 3 Value creation chain in a global production network Far-reaching standardization of all components 4 increases productivity, quality and fl
Slide 10: Unlock growth potential and increase profitability: financial targets 2022
WE WILL UNLOCK OUR POTENTIAL FOR GROWTH AND INCREASE OUR PROFITABILITY. #1 FINANCIAL TARGETS 2022 EUR 2 billion revenue through organic growth 10% EBIT over the economic cycle 10% ROCE over the economic cycle MARKET LEADER IN LIFTING SOLUTIONS 10
Slide 11: Global structures to live up to promise of performance
PALFINGER USES GLOBAL STRUCTURES TO LIVE UP TO ITS PROMISE OF PERFORMANCE. AMERICAS Production: 8 | R&D: 6 EMEA Production: 15 | R&D: 8 CIS Production: 5 | R&D: 2 ASIA & PACIFIC Production: 2 | R&D: 1 SEA Production: 6 | R&D: 8 Production R&D 11
Slide 12: Felix Strohbichler, CFO: Segment Reporting & Key Financials
FELIX STROHBICHLER CFO SEGMENT REPORTING & KEY FINANCIALS 12
Slide 13: LAND Segment
LAND SEGMENT 13
Slide 14: PALFINGER Lifting Solutions – LAND
PALFINGER LIFTING SOLUTIONS – SOLUTIONS FOR EVERY CHALLENGE. LOADER FORESTRY & STIFF BOOM ACCESS HOOKLIFTS & TAIL LIFTS CRANES RECYCLING CRANES CRANES PLATFORMS SKIPLOADERS TRUCK PASSENGER BRIDGE INSPECTION RAILWAY MOUNTED SYSTEMS UNITS SYSTEMS FORKLIFTS LAND 14
Slide 15: We are levelling up our success
WE ARE LEVELLING UP OUR SUCCESS. LAND SEGMENT 1 Crane business as driver of dynamic growth 2 Positive performance of European core markets, upturn in Southern Europe 3 Local value creation in Russia facilitates further growth Significant expansion of business in China 4 due to Sany Palfinger 15
Slide 16: Strong increase in revenue and even higher increase in earnings
STRONG INCREASE IN REVENUE AND EVEN HIGHER INCREASE IN EARNINGS. LAND SEGMENT EUR million 2017 2018 % Revenue 1,230.2 1,399.4 +13.8% EBITDAn1) 201.4 232.8 +15.6% EBITDAn margin1) 16.4% 16.6% – EBITn1) 160.8 191.4 +19.0% EBITn margin1) 13.1% 13.7% – Restructuring costs 13.3 11.0 (17.8%) 1) Figures no
Slide 17: SEA Segment
SEA SEGMENT 17
Slide 18: PALFINGER Lifting Solutions – SEA
PALFINGER LIFTING SOLUTIONS – SOLUTIONS FOR EVERY CHALLENGE. MARINE WIND LIFE & RESCUE WINCHES & CRANES CRANES BOATS HANDLING EQUIPMENT ROPE OFFSHORE DAVITS SPECIAL BOATS ACCESS CRANES SEA 18
Slide 19: Initial successes in a demanding market environment
INITIAL SUCCESSES IN A DEMANDING MARKET ENVIRONMENT. SEA SEGMENT 1 EBITDAn margin slightly positive at 1.4 per cent Moderate increase in service business 2 (investment propensity of customers curbed by oil price) 3 Growth recorded in the fisheries, fish farming, cruise and coast guard sectors 4 Syne
Slide 20: Positive signs despite decline in revenue
POSITIVE SIGNS DESPITE DECLINE IN REVENUE. SEA SEGMENT EUR million 20172) 2018 % Revenue 240.9 216.3 (10.2%) EBITDAn1) 3.2 3.1 (4.6%) EBITDAn margin1) 1.3% 1.4% – EBITn1) (9.4) (8.7) +7.5% EBITn margin1) (3.9%) (4.0%) – Restructuring costs 87.9 19.7 (77.6%) 1) Figures normalized (n) by restructuring
Slide 21: Adjustment of goodwill with retrospective effect in 2017 financial statements
ADJUSTMENT OF GOODWILL WITH RETROSPECTIVE EFFECT IN THE 2017 SEA SEGMENT FINANCIAL STATEMENTS. 1 Impairment loss of EUR 82.4 million on goodwill in the SEA segment 2 Adjustment had zero impact on 2018 earnings or dividends 3 Adjustment will lead to positive tax effects in the years to come 21
Slide 22: PALFINGER Group
PALFINGER GROUP 22
Slide 23: Excellent increase in operating profitability
EXCELLENT INCREASE IN OPERATING PROFITABILITY. EUR million 20172) 2018 % Revenue 1,471.1 1,615.6 +9.8% EBITDAn1) 186.0 214.6 +15.4% EBITDAn margin1) 12.6% 13.3% – EBITn1) 129.7 158.2 +22.0% EBITn margin1) 8.8% 9.8% – EBIT 27.8 127.0 – Consolidated net result for the period (11.4) 58.0 – Dividend per
Slide 24: Investing in capacities and new business models
WE ARE INVESTING IN CAPACITIES AND NEW BUSINESS MODELS. EUR million 160 139.6 140 120 100 95.7 80 65.91) 71.4 68.3 69.8 60.4 60 49.9 38.6 41.0 57.2 40 20 0 2) 2014 2015 2016 2017 2018 1) Adjusted by acquisition of interest in SANY, total: EUR 175.9 million. Impairment 2) Figures adjusted with retros
Slide 25: ROCE increased to 8.5%
ROCE INCREASED TO 8.5%. EUR million 1.200 20% 1,059 1,048 976 1.000 835 15% 800 705 9.6% 600 8.1% 8.5% 10% 7.4% 400 5% 1.7% 200 0 0% 2) 2014 2015 2016 2017 2018 1) Average of past 12 months. 2) Figures adjusted with retrospective effect (see Integrated Annual Report page 144). Capital employed1) Acc
Slide 26: Solid balance sheet structure with an upward trend
SOLID BALANCE SHEET STRUCTURE WITH AN UPWARD TREND. EUR million 300 260 222 31 Dec 2017 31 Dec 2018 200 Financial liabilities (FL) EUR 592.2m EUR 580.4m Ø Interest rate FL 1.78%1) 1.69%1) 99 100 Ø Remaining time to 3.73 years 4.21 years maturity FL 0 Cash equivalents 39.8 34.7 0 – 1 YEARS 1 – 5 YEAR
Slide 27: Improved equity ratio and sound balance sheet
ENSURING FUTURE VIABILITY THROUGH IMPROVED EQUITY RATIO AND SOUND BALANCE SHEET. 31 Dec 2017 31 Dec 2018 Equity ratio 34.6% 36.4% Gearing 100.3% 92.8% Net debt/EBITDA 3.07 2.62 Acc. to IFRS, minor rounding differences may occur. 27
Slide 28: Increase in free cash flows despite higher investments
INCREASE IN FREE CASH FLOWS DESPITE SUBSTANTIALLY HIGHER INVESTMENTS. EUR million 2017 2018 EBTDA 145.7 180.8 +/– Non-cash result from companies at equity (6.5) (4.0) +/– Change in working capital (27.2) (10.9) +/– Cash flows from tax payments (20.0) (39.4) Cash flows from operating activities 92.0
Slide 29: Andreas Klauser, CEO: Conclusions
ANDREAS KLAUSER CEO CONCLUSIONS 29
Slide 30: 2018 was a record year in our company's history
2018 WAS A RECORD YEAR IN OUR COMPANY’S HISTORY. 30
Slide 31: Added value due to re-positioning (GPO)
ADDED VALUE DUE TO RE-POSITIONING (GPO) – IN EXCELLENT SHAPE FOR THE FUTURE. 31
Slide 32: Our future is integrated, connected & customer-oriented
OUR FUTURE IS INTEGRATED, CONNECTED & CUSTOMER- ORIENTED. 32
Slide 33: Successful start to 2019
Re-focussing on the core business More transparency and faster responses Intensifying synergies and increasing profitability Fully utilizing potential for organic growth Full digital transformation SUCCESSFUL START TO 2019. 33
Slide 34: Together we are shaping the future of our customers' lifting solutions
TOGETHER WE ARE SHAPING THE FUTURE OF OUR CUSTOMERS’ LIFTING SOLUTIONS. PALFINGER.AG 34
Slide 35: Investor Relations
INVESTOR RELATIONS ANDREAS KLAUSER HANNES ROITHER PALFINGER AG CEO Company Spokesperson Lamprechtshausener Bundesstrasse 8 5101 Bergheim Phone +43 662 2281-81008 Phone +43 662 2281-81100 a.klauser@palfinger.com h.roither@palfinger.com www.palfinger.ag This presentation contains forward-looking state