Slide 1: PALFINGER AG – Presentation on the first half of 2011
PALFINGER AG Presentation on the first half of 2011 Vienna, 10 August 2011
Slide 2: Herbert Ortner, CEO
Herbert Ortner, CEO
Slide 3: Market volatility
Market volatility Revenue AREA UNITS EUROPEAN UNITS 500 450 400 350 300 250 200 150 100 50 0 -50 2005 2006 2007 2008 2009 2010 2011 Importance of flexibility and internationality is increasing Acc. to IFRS in million EUR. 3
Slide 4: Highlights
Highlights • Strong growth in the first half of 2011 • Continued market recovery reflected in all units and areas • Revenue increased by 39.3% to EUR 414.3 million Acquisitions made in 2010 contributed around one third of this growth • Structural and cost-related measures taken in previous years e
Slide 5: Strategy
Strategy
Slide 6: PALFINGER at a glance
PALFINGER at a glance • Leading international manufacturer of hydraulic lifting, loading, and handling systems Number one in knuckle boom cranes, timber and recycling cranes and hookloaders Number two in tail lifts and transportable forklifts Leading specialist in high-tech railway system solu
Slide 7: Strategic highlights 2011
Strategic highlights 2011 • Innovation: research and development a priority Crane series 2015 Product adjustments to meet specific regional requirements Further development in the field of electronics and mechatronics • Internationalization: focus on future markets Assembly activities starte
Slide 8: Flexibility
Flexibility • Increasing market volatility (regions and industries) • Structures must allow for quick responses • Flexibility of the entire value-creation chain to be raised Basis: New organizational structure since 2010 Procurement: Master agreements with strategic suppliers Production: Order
Slide 9: Internationalization
Internationalization Revenue HY1 2006 Revenue HY1 2011 11.6% 23.2% AREA UNITS AREA UNITS 88.4% 76.8% EUROPEAN UNITS EUROPEAN UNITS 9
Slide 10: INMAN acquisition
INMAN acquisition • Leading Russian crane manufacturer (Republic of Bashkortostan) 415 employees Revenue 2011e: EUR 20 million • Local value creation with 2 production sites • Expansion of service and distribution network In particular in the Ural region • Subject to the approval of the Federa
Slide 11: Segments
Segments
Slide 12: Segment financials
Segment financials Revenue HY1 2011 HY1 2010 % EUROPEAN UNITS 318.2 225.4 + 41.1% AREA UNITS 96.1 72.0 + 33.5% VENTURES – – – Segment result (EBIT) HY1 2011 HY1 2010 % EUROPEAN UNITS 44.6 24.5 + 82.1% AREA UNITS (4.3) (6.5) + 33.5% VENTURES (4.3) (3.4) (25.1%) Acc. to IFRS in million EUR. Minor roun
Slide 13: EUROPEAN UNITS segment
EUROPEAN UNITS segment • Recovery in important sales markets continued Increases in Germany, France, Scandinavia, Russia and GB Spain, Portugal, Greece, parts of Eastern Europe still weak • Upward trend continued, in particular in cranes and Tail Lifts • Marked improvement in Access Platforms in
Slide 14: AREA UNITS segment
AREA UNITS segment • Clear improvement in revenue and earnings compared to the previous year • Good performance in North America, particularly in the second quarter • South America as a growth market, order-based manufacturing has positive impact on earnings • Tremendous growth in the area Asia and
Slide 15: VENTURES unit
VENTURES unit • Continuation of cost-related and structural programmes • Development of the Indian, Asian and Russian areas through acquisitions or partnerships Acquisition project INMAN completed 15
Slide 16: Key Financial Figures – Christoph Kaml, CFO
Key Financial Figures Christoph Kaml, CFO
Slide 17: Financial highlights
Financial highlights HY1 2011 HY1 2010 HY1 2009 % Revenue 414.3 297.4 269.2 + 39.3% EBITDA 50.1 24.9 6.8 + 101.4% (incl. associated companies)* EBITDA margin 12.1% 8.4% 2.5% – EBIT 36.0 14.5 (4.2) + 147.4% (incl. associated companies)* EBIT margin 8.7% 4.9% (1.6%) – Result before income tax 30.1 11.
Slide 18: Quarterly figures
Quarterly figures Revenue EBIT (incl. associated companies) 250 223 50 215 184 188 187 192 200 168 168 40 140 129 129 150 119 117 30 31.4 100 20 20.9 50 16.2 13.5 15.1 10 11.0 9.1 0 0 (4.4) (1.5) 0.3 0.9 3.6 (2.7) -50 -10 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11
Slide 19: Capital employed
Capital employed* Net working capital (in relation to revenue) Non-current operating assets 503 464 471 500 413 134 (18%) 400 156 (24%) 138 (26%) 300 153 (20%) 300 115 (18%) 200 369 308 333 260 100 185 0 HY1 2007 HY1 2008 HY1 2009 HY1 2010 HY1 2011 Targeted capital employed management; increase thro
Slide 20: Investment
Investment Investment in property, plant, and equipment Depreciation, amortization, and impairment 40 34.0 30 28.2 20 14.1 9.9 11.0 10.4 10 7.0 6.6 3.8 3.9 0 HY1 2007 HY1 2008 HY1 2009 HY1 2010 HY1 2011 Acc. to IFRS in million EUR. Minor rounding differences may occur. 20
Slide 21: Gearing ratio and equity
Gearing ratio and equity Net debt Equity Gearing % 400 100% 339.6 350 309.9 313.3 263.5 288.4 300 75% 250 170.8 157.9 163.4 200 59.2% 48.1% 50% 102.6 50.4% 150 100 33.1% 25% 50 36.3 13.8% 0 0% HY1 2007 HY1 2008 HY1 2009 HY1 2010 HY1 2011 Gearing below 50 per cent threshold Acc. to IFRS in million EU
Slide 22: Cash flow
Cash flow HY1 2011 HY1 2010 HY1 2009 EBTDA 44.2 22.2 2.3 +/– Cash flows from working capital (27.5) 0.7 17.9 +/– Cash flows from investments at equity 0.7 2.1 0.6 +/– Cash flows from tax payments (2.3) (1.6) (2.2) Cash flows from operating activities 15.1 23.4 18.6 +/– Cash flows from investing acti
Slide 23: PALFINGER share
PALFINGER share Shareholder structure Shareholder information as of 30 June 2011 ISIN AT0000758305 5% 1% Delta Lloyd PALFINGER AG Number of shares 35,730,000 Share price as of EUR 24.91 29% end of period free float Market capitalization EUR 890.0m Earnings per share EUR 0.64 65% Palfinger family 23
Slide 24: Outlook – Herbert Ortner, CEO
Outlook Herbert Ortner, CEO
Slide 25: Outlook and objectives – internally
Outlook and objectives – internally • Growth in young areas (Russia, Asia) set as a priority • Continuation of activities to expand existing markets • Further increase in flexibility in all areas • Development of products and technologies to be continued • Improvement of currently still weak units a
Slide 26: Outlook and objectives – externally
Outlook and objectives – externally • At present, uncertainty in the market is increasing • Demand expected to decline in the second half Economic environment Already high level achieved after the crisis Seasonality of business Organic revenue growth of more than 20 per cent striven for in 201
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 Fax: +43 662 46 84-2280 This presentation contains forward-lookin