Slide 1: Steep growth in marine business
PALFINGER AG Steep growth in marine business Presentation on the results for the first half of 2016 Vienna, 27 July 2016
Slide 2: Herbert Ortner, CEO
HERBERT ORTNER, CEO 2
Slide 3: Growth despite market volatility
GROWTH DESPITE MARKET VOLATILITY REVENUE, GROWTH AND VOLATILITY (QUARTERS) AREA UNITS from 2009 to 2016: +307% PALFINGER MARINE from 2011 to 2016: +768% EUROPEAN UNITS (excl. marine business) from 2009 to 2016: +121% EUR 103.7m 300 EUR 39.8m EUR 203.2m 200 EUR 92.0m Q1/2011 EUR 4.6m EUR 25.5m Total
Slide 4: Highlights HY1 2016
HIGHLIGHTS HY1 2016 HY1 2016 marked by revenue growth and substantial increase in earnings » Growth achieved in nearly all product areas in Europe » Business in Southern Europe also increased » Good product mix generated exceptionally high increase in earnings » Reorganization in North America » Fur
Slide 5: 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 6: Planned acquisition of TTS Group ASA
PLANNED ACQUISITION OF TTS GROUP ASA Founded in 1966, listed since 1995, growth through strategic M&A activities since 1996 Global presence, subsidiaries in 15 countries 1,100 employees, revenue of approx. EUR 340 million Leading supplier of handling solutions and access systems for maritime and off
Slide 7: Further highlights HY1 2016
FURTHER HIGHLIGHTS HY1 2016 Acquisition of distribution partner in Spain and foundation of PALFINGER Iberica » 75% share held by PALFINGER » Sale of loader cranes, timber and recycling cranes, hooklifts, access platforms and marine products in Spain and Portugal » Market gradually recovering from to
Slide 8: Strategy
STRATEGY 8
Slide 9: 5 Continents – 7 Oceans
5 CONTINENTS – 7 OCEANS EMEA Loader cranes NORTH AMERICA Timber and recycling cranes Loader cranes Tail lifts CIS Timber and recycling cranes Access platforms Loader cranes Tail lifts Hooklifts Timber and recycling cranes Access platforms Truck mounted forklifts Tail lifts Hooklifts Railway systems
Slide 10: PALFINGER on land and sea
PALFINGER ON LAND AND SEA Leading international manufacturer of innovative lifting solutions » World market leader in truck mounted loader cranes and hooklifts » Leading specialist in timber and recycling cranes, tail lifts, truck mounted forklifts and high-tech railway systems Global sales and serv
Slide 11: Strategic targets 2017
STRATEGIC TARGETS 2017 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 Global balance of production and proximity to customers Expansion of market position in the marine and offshor
Slide 12: Internationalization (1)
INTERNATIONALIZATION (1) STRATEGIC TARGET 2017 REVENUE HY1 2016 approx. EUR 1.8bn* EUR 665.6m ASIA AND PACIFIC ASIA AND PACIFIC CIS CIS EMEA 14.68% ⅓ ⅓ AMERICAS 23.83% 61.49% ⅓ AMERICAS EMEA * Including JVs in China and Russia * The global marine business is included in the EMEA segment Minor roundi
Slide 13: Internationalization (2)
INTERNATIONALIZATION (2) REVENUE 2009 REVENUE HY1 2016 EUR 505.4m total revenue EUR 665.6m 3.2% 2.1% 4.1% REST OF EUROPE AFRICA AND 5.9% AFRICA AND CIS 0.4% MIDDLE EAST REST OF EUROPE MIDDLE EAST FAR EAST 3.5% CIS 5.0% 51.5% 7.0% 9.7% EUROPEAN CENTRAL AND FAR EAST UNION SOUTH AMERICA 12.3% 2.1% NORT
Slide 14: Segments
SEGMENTS 14
Slide 15: Segment financials
SEGMENT FINANCIALS SEGMENT REVENUE HY1 2015* HY1 2016 % EUROPEAN UNITS 414.3 469.7 +13.4% AREA UNITS 191.9 195.9 +2.1% VENTURES – – – SEGMENT EBIT HY1 2015* HY1 2016 % EUROPEAN UNITS 53.1 73.6 +38.5% AREA UNITS 7.7 0.9 (88.7%) VENTURES (7.4) (9.8) (32.0%) * Figures were adjusted with retrospective e
Slide 16: European Units segment
EUROPEAN UNITS SEGMENT Revenue increased by 13.4% due to good product mix » Good performance in nearly all product areas » High profitability due to good capacity utilization of production units » Significant growth, primarily in Belgium, Germany, Finland, France, Ireland, Italy, the Netherlands, No
Slide 17: Area Units segment
AREA UNITS SEGMENT Revenue increased by 2.1% to EUR 195.9 million » Growth despite difficult market conditions » Positive development in Russia despite weak ruble » Joint ventures with KAMAZ started off as planned EBIT fell by 88.7% to EUR 0.9 million » Necessary reorganization in North America affe
Slide 18: Ventures unit
VENTURES UNIT Preparation of acquisition of Harding and planned takeover of the TTS Group Integration of Harding into the PALFINGER Group Restructuring of PALFINGER MARINE Continuation of cost-related and structural programmes 18
Slide 19: Key financials, Christoph Kaml, CFO
KEY FINANCIALS CHRISTOPH KAML, CFO 19
Slide 20: Key financials
KEY FINANCIALS HY1 2014* HY1 2015* HY1 2016 % Revenue 531.2 606.2 665.6 +9.8% EBITDA 58.5 73.5 86.7 +18.1% EBITDA margin 11.0% 12.1% 13.0% – EBIT 41.2 53.5 64.9 +21.4% EBIT margin 7.8% 8.8% 9.8% – Result before income tax 35.7 48.6 58.8 +20.9% Consolidated net result for the 24.5 34.5 39.7 +15.2% pe
Slide 21: Quarterly figures
QUARTERLY FIGURES Revenue EBIT 347 350 331 319 50 314 281 292 293 300 267 262 264 251 40 248 239 250 200 34.8 30 30.0 30.2 150 27.0 23.5 23.9 20 100 20.3 20.9 16.1 16.8 18.1 14.5 10 50 10.4 0 0 Q2/13* Q3/13* Q4/13* Q1/14* Q2/14* Q3/14* Q4/14* Q1/15* Q2/15* Q3/15* Q4/15* Q1/16 Q2/16 EBIT 6.5% 7.0% 6.
Slide 22: Current capital
CURRENT CAPITAL* Current capital CC ratio 600 40% 500 29.1% 28.7% 28.6% 27.9% 26.9% 30% 400 296 317 270 362 300 261 20% 200 10% 100 0 0% HY1 2012 HY1 2013 HY1 2014 HY1 2015 HY1 2016 * Average. Acc. . to IFRS in EUR million. Minor rounding differences may occur. 22
Slide 23: Investments
INVESTMENTS Net investments Depreciation, amortization and impairment 40 35.6* 35 29.6 30 26.9 25 23.0 21.8 20.2 20.0 20 17.2 15.2 15.1 15 10 5 0 HY1 2012 HY1 2013 HY1 2014 HY1 2015 HY1 2016 * Adjusted by acquisition of interest in SANY, total: EUR 109,978 thousand Acc. to IFRS in EUR million. Minor
Slide 24: Gearing ratio and equity
GEARING RATIO AND EQUITY Net debt Equity Gearing % 600 93.4% 100% 511.9 500 80.0% 442.4 74.4% 540,9 80% 369.4 505.4 400 359.7 65.9% 353.8 380.7 54.1% 60% 300 243.3 194.5 40% 200 100 20% 0 0% HY1 2012 HY1 2013 HY1 2014 HY1 2015 HY1 2016 Equity ratio at a high level Acc. to IFRS in EUR million. Mino
Slide 25: Free cash flows
FREE CASH FLOWS HY1 2014* HY1 2015 HY1 2016 EBTDA 52.7 68.6 80.6 +/– Non-cash result from companies at 1.1 (1.1) (0.9 ) equity +/– Change in working capital (41.2) (26.1) (11.2) +/– Cash flows from tax payments (2.9) (3.8) (3.9) Cash flows from operating activities 9.7 37.6 64.6 +/– Cash flows from
Slide 26: Outlook, Herbert Ortner, CEO
OUTLOOK HERBERT ORTNER, CEO 26
Slide 27: 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 Quick completion of planned takeover of the TTS Group Sustainable integration of Harding
Slide 28: Outlook and objectives – externally
OUTLOOK AND OBJECTIVES – EXTERNALLY Visibility remains limited in Europe, but has stabilized Growth achieved in non-European regions; satisfactory demand in CIS in spite of difficult conditions; South America affected by shrinking market Process adjustments in North America might limit growth in ear
Slide 29: Reorganization of the PALFINGER Group
REORGANIZATION OF THE PALFINGER GROUP Reporting acc. to IFRS in the segments “Land” and “Sea” » The Group’s “Holding” will be presented as a cost centre Reporting in the “Land” segment will continue to be made by geographical market regions at revenue level At Group level, EBITDA and EBIT will be pr
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: Back up
BACK UP 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* % 1000 952 40% 900 852 800 698 30% 700 596 679 600 536 582 439 500 20% 360 312 400 300 11.3% 8.7% 8.3% 9.1% 7.3% 10% 200 273 259 224 236 87 270 100 61 52 58
Slide 33: Balance sheet structure
BALANCE SHEET STRUCTURE ASSETS LIABILITIES Equity Non-current assets Current assets Non-current liabilities Current liabilities 2000 2000 1,524 1,524 1500 1,224 1500 1,224 637 508 1000 1000 279 511 433 475 500 887 500 713 512 541 0 0 HY1 2015* HY1 2016 HY1 2015* HY1 2016 * Figures were adjusted with
Slide 34: Financing structure as at 30 June 2016
FINANCING STRUCTURE AS AT 30 JUNE 2016 400 Financial liabilities (FL) EUR 568.6m 299 Ø Interest rate FL 2.26% 300 Ø Remaining time to maturity FL 2.00 years 240 Cash equivalents EUR 28.3m 200 Net debt EUR 505.4m Equity ratio 35.5% 100 Gearing 93.4% 29 Net debt/EBITDA 3.19 0 Maturity 0–1 years 1–5 ye
Slide 35: PALFINGER shares
PALFINGER SHARES SHAREHOLDER STRUCTURE SHAREHOLDER INFORMATION AS AT 30 JUNE 2016 10% ISIN AT0000758305 SANY Group Number of shares 37,593,258 Share price EUR 25.90 as at end of period 31% Market capitalization EUR 973.7m free float Earnings per share EUR 1.06 59% Palfinger family 35
Slide 36: Performance of PALFINGER shares since 2015
PERFORMANCE OF PALFINGER SHARES SINCE 2015 PALFINGER AG EUR 26.30 ATX DAX 2 Jan 2015 2 Jan 2016 19 July 2016 36
Slide 37: Research reports
RESEARCH REPORTS Deutsche Bank HSBC Erste Group Kepler Cheuvreux Hauck & Aufhäuser RCB Berenberg Bank Earnings estimates – consensus (EUR million) 2016e 2017e Revenue 1,320.6 1,393.8 EBIT 118.2 129.8 Earnings per share (EUR) 1.98 2.20 37
Slide 38: PALFINGER MARINE
PALFINGER MARINE Started in 2010 with acquisition of Ned Deck and revenue of EUR 20 million » 2010: Acquisition of product areas of palfinger systems (EUR 30 million) » 2012: Acquisition of Dreggen; revenue of EUR 30 million » 2013: Acquisition of MCT; cooperation with Koch » 2013: Acquisition of Me