Slide 1: PALFINGER AG Presentation on the first three quarters of 2013
PALFINGER AG Presentation on the first three quarters of 2013 November 2013
Slide 2: Ongoing market volatility
ONGOING MARKET VOLATILITY REVENUE (HALF YEAR) AREA UNITS EUROPEAN UNITS 500 450 400 350 300 250 200 150 100 50 0 -50 2005 2006 2007 2008 2009 2010 2011 2012 2013 Î Flexibility and internationality as bases for success Acc. to IFRS in EUR million. 2
Slide 3: Highlights Q1–Q3
HIGHLIGHTS Q1–Q3 Growth in spite of difficult economic situation » Positive development outside Europe and in the Marine business area » Internationalization enabled consolidation of leading market position » Moderate upward trend in Europe in Q3 Revenue increased by 4.0% to EUR 716.1 million EBIT r
Slide 4: Strategy
STRATEGY 4
Slide 5: 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 6: Strategic objectives 2017
STRATEGIC OBJECTIVES 2017 Growth, primarily in BRIC countries 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 innovation leadership worldwide Meeting customers’ exp
Slide 7: Strategic highlights 2013
STRATEGIC HIGHLIGHTS 2013 Joint Ventures with SANY » Sany Palfinger: positive sales development in China » Palfinger Sany: dealers and first sales in CIS PALFINGER DREGGEN » Offshore cranes have been expanding portfolio since acquisition in Q4 2012 » 2 orders totalling approx. EUR 90 million receive
Slide 8: Partnership with the SANY Group, China
PARTNERSHIP WITH THE SANY GROUP, CHINA SANY is the largest heavy equipment manufacturer in China 2 joint ventures started operations approx. one year ago Expansion of partnership planned through mutual shareholdings » Economic interests of 10% each » PALFINGER AG: One half: new shares (from authoriz
Slide 9: Internationalization
INTERNATIONALIZATION REVENUE Q1–Q3 2012 REVENUE Q1–Q3 2013 32.7% 33.1% AREA UNITS AREA UNITS 67.3% 66.9% EUROPEAN UNITS EUROPEAN UNITS 9
Slide 10: Segments
SEGMENTS 10
Slide 11: Segment financials
SEGMENT FINANCIALS SEGMENT REVENUE Q1–Q3 2012 Q1–Q3 2013 % EUROPEAN UNITS 463.0 479.2 + 3.5% AREA UNITS 225.3 236.9 + 5.2% VENTURES – – – SEGMENT EBIT Q1–Q3 2012 Q1–Q3 2013 % EUROPEAN UNITS 58.1 62.3 + 7.1% AREA UNITS 6.2 7.3 + 17.6% VENTURES (10.8) (13.2) (22.8%) Acc. to IFRS in EUR million. Minor
Slide 12: European Units segment
EUROPEAN UNITS SEGMENT Economic environment remains difficult in Europe » Business units Access Platforms, Railway Systems and Production posted increases » Strategic measures supported further development » Other business units recorded declines in revenue Global Marine business area compensates de
Slide 13: Area Units segment
AREA UNITS SEGMENT Revenue increased in all areas » Positive trend in North America continues » South America as a growth market; also due to additional product groups » Asia recorded substantial increases, still at a low level » Weak environment noticeable in India » Capacity expansion in CIS plann
Slide 14: Ventures unit
VENTURES UNIT Focus on further internationalization » Development of the regions South America and Russia and the Marine business area » Potential acquisitions and partnerships Continuation of cost-related and structural programmes 14
Slide 15: Key financials
KEY FINANCIALS 15
Slide 16: Financial highlights
FINANCIAL HIGHLIGHTS Q1–Q3 2011 Q1–Q3 2012 Q1–Q3 2013 % Revenue 624.0 688.2 716.1 + 4.0% EBITDA 73.5 74.4 79.3 + 6.6% EBITDA margin 11.8% 10.8% 11.1% – EBIT 52.4 52.0 56.0 + 7.8% EBIT margin 8.4% 7.5% 7.8% – Result before income tax 43.3 43.9 46.3 + 5.4% Consolidated net result for the period 32.7 3
Slide 17: Quarterly figures
QUARTERLY FIGURES Revenue EBIT 241 247 249 241 250 223 224 223 226 50 222 210 187 192 200 40 168 150 30 100 20 20.9 19.5 21.1 16.5 17.7 16.5 18.1 16.9 50 13.5 15.1 15.5 14.8 10 9.1 0 0 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 EBIT 5.4% 7.2% 7.9% 9.4% 7.8% 7.0% 7.
Slide 18: Capital employed
CAPITAL EMPLOYED* Net Working Capital (as percentage of revenue) Non-current operating assets 604 600 542 496 500 464 456 182 (19%) 118 (15%) 149 (16%) 400 158 (27%) 133 (16%) 300 200 378 392 422 306 323 100 0 Q1–Q3 2009 Q1–Q3 2010 Q1–Q3 2011 Q1–Q3 2012 Q1–Q3 2013 Increase through expansion of busin
Slide 19: Investments
INVESTMENTS Net investments Depreciation, amortization and impairment 40 34.6 30 28.1 22.5 23.3 21.1 20 16.2 16.7 17.1 10.4 9.2 10 0 Q1–Q3 2009 Q1–Q3 2010 Q1–Q3 2011 Q1–Q3 2012 Q1–Q3 2013 Acc. to IFRS in EUR million. Minor rounding differences may occur. 19
Slide 20: Gearing ratio and equity
GEARING RATIO AND EQUITY Net debt Equity Gearing % 450 100% 400 367.1 381.2 315.8 339.5 350 286.9 75% 300 243.2 63.8% 250 187.9 56.3% 50% 200 161.5 169.8 50.0% 51.2% 152.4 48.2% 150 100 25% 50 0 0% Q1–Q3 2009 Q1–Q3 2010 Q1–Q3 2011 Q1–Q3 2012 Q1–Q3 2013 Î Promissory note loan (Q4 2012) invested into
Slide 21: Free cash flows
FREE CASH FLOWS Q1–Q3 2011 Q1–Q3 2012 Q1–Q3 2013 EBTDA 64.3 66.4 69.6 +/– Non-cash result from companies at equity (0.3) (2.2) (6.8) +/– Change in working capital (24.9) (23.7) (28.7) +/– Cash flows from tax payments (8.4) (9.5) (5.0) Cash flows from operating activities 30.7 31.0 29.1 +/– Cash flow
Slide 22: Outlook
OUTLOOK 22
Slide 23: Outlook and objectives – internally
OUTLOOK AND OBJECTIVES – INTERNALLY Internationalization strategy to be continued » Focus on Brazil, Russia, Marine business area Further development of the partnership with SANY Growth potential in Marine business area Further increase in flexibility » Processes in production and administration » R
Slide 24: Outlook and objectives – externally
OUTLOOK AND OBJECTIVES – EXTERNALLY Economic situation in Europe remains marked by uncertainty Growth expected in regions outside Europe Limited visibility, but positive trends noticeable Î Slight revenue growth expected for 2013 24
Slide 25: Investor Relations
INVESTOR RELATIONS Herbert Ortner, CEO Hannes Roither, Company Spokesperson Tel. +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 statemen
Slide 26: Back up
BACK UP 26
Slide 27: Balance sheet structure
BALANCE SHEET STRUCTURE ASSETS LIABILITIES Current liabilities Current Assets Non-current liabilities Non-current Assets Equity 1000 860 1000 860 791 791 800 800 208 225 600 386 429 600 216 253 400 400 200 405 431 200 367 381 0 0 Q3 2012 Q3 2013 Q3 2012 Q3 2013 Long-term financial structure, Î 2012
Slide 28: Financing structure as at September 2013
FINANCING STRUCTURE AS AT 30 SEPTEMBER 2013 200 185 Ø Interest rate 3.04% 150 Ø Remaining time to maturity 2.52 years Financial assets EUR 13.4m 100 Equity ratio 44.4% 50 50 22 0 Maturity 2013 2014 after 2014 Acc. to IFRS in EUR million. Minor rounding differences may occur. 28
Slide 29: Palfinger shares
PALFINGER SHARES SHAREHOLDER STRUCTURE SHAREHOLDER INFORMATION AS AT 30 SEPTEMBER 2013 1% PALFINGER AG ISIN AT0000758305 34% Number of shares 35,730,000 free float thereof own shares 328,090 Share price as at end EUR 28.90 of period Market capitalization EUR 1,032.6m Earnings per share EUR 0.97 65%
Slide 30: Performance of Palfinger shares since 2012
PERFORMANCE OF PALFINGER SHARES SINCE 2012 240 220 PALFINGER AG EUR 27.20 200 180 160 DAX 140 ATX 120 100 80 2 Jan 2012 2 Jan 2013 31 Oct 2013 30
Slide 31: Research reports
RESEARCH REPORTS Berenberg Bank HSBC Deutsche Bank Kepler Cheuvreux Erste Group RCB Goldman Sachs UBS Hauck & Aufhäuser Earnings Estimates – consensus (EUR million) 2013e 2014e Revenue 992.6 1,091.3 EBIT 76.1 98.6 Earnings per share (EUR) 1.35 1.73 31
Slide 32: Financial calendar 2013/2014
FINANCIAL CALENDAR 2013/2014 17 February 2014 Balance sheet press conference 12 March 2014 Annual General Meeting 14 March 2014 Ex-dividend day 18 March 2014 Dividend payment day 7 May 2014 Publication of results for the first quarter of 2014 7 August 2014 Publication of results for the first half o