Slide 1: PALFINGER AG: Continued growth
PALFINGER AG Continued growth Two-digit operating profitability achieved Presentation on the results for the first half of 2017 Vienna, 27 July 2017
Slide 2: Growth despite market volatility
GROWTH DESPITE MARKET VOLATILITY REVENUE, GROWTH AND VOLATILITY (QUARTERS) LAND segment from 2009 to 2017: +177% SEA segment from 2011 to 2017: +1,306% Quarterly result 400 EUR Total revenue 327.3m +168.5% 2009–2016 300 CAGR: 15.2% 200 EUR 117.5m EUR 64.5m Q1 2011 EUR 4.6m 2010 2011 2012 2013 2014 2
Slide 3: Highlights HY1 2017
HIGHLIGHTS HY1 2017 Continued growth; two-digit operating profitability » Environment remains heterogeneous from a global perspective » Excellent performance in Europe, Russia and China » Downturn seems to have bottomed out in South America; environment remains difficult » Acquisitions support growt
Slide 4: Strategic highlights HY1 2017
STRATEGIC HIGHLIGHTS HY1 2017 Sky Steel Systems LLC » 20% investment in Sky Steel Systems, Dubai, producer of building maintenance tools and facade access equipment Palfinger Danmark AS » Takeover of sales organization from former owner, who will focus on the company’s core business Restructuring »
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 1.4bn, approx. 9,970 employees (2016) » 38 production sites LAND: approx. EUR 1.2bn SEA: approx. EUR 0.2bn » 7,800 employees » 1,500 employees » 5,000 service centres worldwide » 16 service centres worldwide » Number one worldwide for loader crane
Slide 8: Internationalization
INTERNATIONALIZATION STRATEGIC TARGET REVENUE HY1 20171) ASIA AND PACIFIC ASIA AND PACIFIC CIS CIS EMEA 18.9% ⅓ ⅓ AMERICAS 21.8% 59.3% ⅓ AMERICAS EMEA 1) Including joint ventures Acc. to IFRS in EUR million. Minor rounding differences may occur. 8
Slide 9: LAND segment
LAND SEGMENT 9
Slide 10: Product portfolio LAND segment
PRODUCT PORTFOLIO LAND SEGMENT PALFINGER is the leading supplier of loading, Loader cranes lifting and handling systems Timber and recycling cranes Telescopic cranes Mobile cranes Access platforms Tail lifts Hooklifts Truck mounted forklifts Passenger lifts Bridge inspection units Railway systems Af
Slide 11: Global footprint – local value creation
GLOBAL FOOTPRINT – LOCAL VALUE CREATION 30 production sites LAND 5,000 service centres (approx. 10,000 service staff / of which approx. 700 PALFINGER) 11
Slide 12: Highlights LAND segment
HIGHLIGHTS LAND SEGMENT Growth based on expansion of business in EMEA and CIS, increase in revenue by 6.3% to EUR 624.6 million » Significant expansion of business in EMEA and CIS » Positive effect of PALFINGER Iberica and Palfinger Danmark » Economic recovery in Europe becoming a steady factor » Re
Slide 13: Financials LAND segment
FINANCIALS LAND SEGMENT HY1 2016 HY1 2017 % Revenue 587.4 624.6 +6.3% EBITDAn1) 95.7 106.5 +11.3% EBITDAn margin1) 16.3% 17.0% – EBITn1) 77.4 86.1 +11.2% EBITn margin1) 13.2% 13.8% – Restructuring costs 4.1 7.5 +82.9% è Exceptional growth of operating result 1) Starting in 2015, these figures were n
Slide 14: SEA segment
SEA SEGMENT 14
Slide 15: 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 Rope access professionals After sales and service 15
Slide 16: Global footprint – also in service
GLOBAL FOOTPRINT – ALSO IN SERVICE 11 production sites 16 service centres (approx. 300 PALFINGER service staff) 16
Slide 17: Highlights SEA segment
HIGHLIGHTS SEA SEGMENT Revenue increased by 65.2% to EUR 129.2 million » Harding contributed EUR 54.7 million to revenue » Share of segment revenue in consolidated revenue rose to 17.1% » Strained situation in the oil and gas industry continues » Increase in incoming orders during the reporting peri
Slide 18: Financials SEA segment
FINANCIALS SEA SEGMENT HY1 2016 HY1 2017 % Revenue 78.2 129.2 +65.2% EBITDAn1) 5.2 5.9 +13.6% EBITDAn margin1) 6.7% 4.6% – EBITn1) 3.1 (0.5) – EBITn margin1) 4.0% (0.4%) – Restructuring costs 0.9 2.5 +177.8% è Operating profitability already increased in Q2 1) Starting in 2015, these figures were no
Slide 19: Key financials
KEY FINANCIALS 19
Slide 20: Key financials
KEY FINANCIALS HY1 2015 HY1 2016 HY1 2017 % Revenue 606.2 665.6 753.8 +13.2% EBITDAn1) 77.3 93.2 105.5 +13.2% EBITDAn margin1) 12.7% 14.0% 14.0% – EBITn1) 57.3 71.4 77.1 +8.0% EBITn margin1) 9.4% 10.7% 10.2% – Result before income tax 48.6 58.8 59.5 +1.2% Consolidated net result for 34.5 39.7 38.6 (
Slide 21: Current capital
CURRENT CAPITAL 1) Current capital CC ratio 600 40% 500 28.6% 28.7% 27.9% 27.9% 27.4% 30% 400 317 396 296 360 300 270 20% 200 10% 100 0 0% HY1 2013 HY1 2014 HY1 2015 HY1 2016 HY1 2017 è Continuous improvement targeted 1) Current capital (average) in proportion to revenue of the previous 12 months. A
Slide 22: Investments
INVESTMENTS Net investments Depreciation, amortization and impairment 1) 40 35.6 35 32.9 29.6 28.4 30 26,9 25 23.0 21.8 20.0 20 17.2 15.1 15 10 5 0 HY1 2013 HY1 2014 HY1 2015 HY1 2016 HY1 2017 è Investments for the enlargement of production capacities and replacement investments 1) Adjusted by acqui
Slide 23: Gearing ratio and equity
GEARING RATIO AND EQUITY Net debt Equity Gearing % 600 93.9% 94.9% 568.3 100% 511.9 500 80.0% 442.4 74.4% 540.9 539.6 80% 369.4 507.8 400 65.9% 353.8 380.7 60% 300 243.3 40% 200 100 20% 0 0% HY1 2013 HY1 2014 HY1 2015 HY1 2016 HY1 2017 Acquisition of Harding increased net debt, è but solid developme
Slide 24: Free cash flows
FREE CASH FLOWS HY1 2015 HY1 2016 HY1 2017 EBTDA 68.6 80.6 87.9 +/– Non-cash result from (1.1) (0.9) (0.5) companies at equity +/– Change in working capital (26.1) (11.2) (49.5) +/– Cash flows from tax payments (3.8) (3.9) (7.1) Cash flows from operating activities 37.6 64.6 30.8 +/– Cash flows from
Slide 25: Outlook
OUTLOOK 25
Slide 26: Outlook and objectives
OUTLOOK AND OBJECTIVES Continuing high level of incoming orders gives reason to expect further positive business development Most of the restructuring measures in North America and in the marine business implemented; outstanding issues to be completed by the end of the year Integration of the Hardin
Slide 27: 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 28: Back up
BACK UP 28
Slide 29: Return on capital employed
RETURN ON CAPITAL EMPLOYED NOPLAT (rolling, past 12 months) Non-current assets and liabilities Net working capital Return on capital employed % 1200 1,100 40% 1100 1000 954 900 852 30% 800 698 787 700 596 681 600 20% 582 439 500 360 400 8.3% 9.2% 300 8.8% 7.3% 7,2% 10% 200 313 273 87 80 259 270 62 2
Slide 30: Balance sheet structure
BALANCE SHEET STRUCTURE ASSETS LIABILITIES Equity Non-current assets Current assets Non-current liabilities Current liabilities 2000 2000 1,525 1,596 1,525 1,595 1500 1500 375 634 698 508 1000 1000 652 476 500 891 898 500 541 568 0 0 HY1 2016 HY1 2017 HY1 2016 HY1 2017 Acc. to IFRS in EUR million. M
Slide 31: Financing structure as at 30 June 2017
FINANCING STRUCTURE AS AT 30 JUNE 2017 400 Financial liabilities (FL) EUR 631.6m 328 Ø Interest rate FL 1.88% 300 250 Ø Remaining time to 4.00 years maturity FL Cash equivalents EUR 53.9m 200 Net debt EUR 539.6m Equity ratio 35.6% 100 54 Gearing 94.9% Net debt/EBITDA 3.28 0 Maturity 0–1 years 1–5 ye
Slide 32: Palfinger shares
PALFINGER SHARES SHAREHOLDER STRUCTURE SHAREHOLDER INFORMATION AS AT 30 JUNE 2017 10% ISIN AT0000758305 SANY Group Number of shares 37,593,258 Share price EUR 40.80 as at end of period 31% Market capitalization EUR 1.5bn free float Earnings per share EUR 1.03 59% Palfinger family 32
Slide 33: Performance of Palfinger shares since 2016
PERFORMANCE OF PALFINGER SHARES SINCE 2016 PALFINGER AG EUR 40.65 160 140 ATX 120 DAX 100 4 Jan 2016 2 Jan 2017 21 July 2017 33
Slide 34: Research reports
RESEARCH REPORTS Deutsche Bank HSBC Erste Group Kepler Cheuvreux Hauck & Aufhäuser RCB Berenberg Bank Earnings estimates – consensus (EUR million) 2017e 2018e Revenue 1,455.6 1,534.9 EBIT 146.8 164.1 Earnings per share (EUR) 2.10 2.63 34