Slide 1: Presentation on the third quarter of 2011
PALFINGER AG Presentation on the third quarter of 2011 10 November 2011
Slide 2: Herbert Ortner, CEO
Herbert Ortner, CEO
Slide 3: Market volatility
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 Importance of flexibility and internationality is increasing Acc. to IFRS in million EUR. 3
Slide 4: Highlights
Highlights • Strong growth in the first three quarters of 2011 • Continued market recovery reflected in all units and areas • Revenue increased by 34.2% to EUR 624.0 million Acquisitions made in 2010/11 contributed around one fourth of this growth • Structural and cost-related measures taken in pr
Slide 5: Strategy
Strategy
Slide 6: PALFINGER at a glance
PALFINGER at a glance • Leading international manufacturer of innovative 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 sol
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 Q1–Q3 2006 Revenue Q1–Q3 2011 12.8% 25.2% AREA UNITS AREA UNITS 87.2% 74.8% EUROPEAN UNITS EUROPEAN UNITS 9
Slide 10: Internationalization in figures
Internationalization in figures Revenue Europe/EMEA Non-European revenue + 134% 456 479 + 355% 173 205 64 38 1999 2005 2010 1999 2005 2010 Acc. to IFRS in million EUR. Minor rounding differences may occur. 10
Slide 11: INMAN acquisition
INMAN acquisition • Leading Russian crane manufacturer (Republic of Bashkortosan) • Local value creation with two production sites • Expansion of service and distribution network In particular in the Ural region • Initial consolidation as of 26 August 2011 11
Slide 12: Extraordinary General Meeting 3 November 2011
Extraordinary General Meeting 3 November 2011 • Possibility of taking corporate actions created Acquisition of own shares (up to 10%) Authorized capital (up to EUR 10 million) • Flexibility in funding, corporate actions only taken if necessary • Enabling the Company to take quick action and stre
Slide 13: Segments
Segments
Slide 14: Segment financials
Segment financials Revenue Q1–Q3 2011 Q1–Q3 2010 % EUROPEAN UNITS 466.5 338.1 + 38.0% AREA UNITS 157.5 126.8 + 24.2% VENTURES – – – Segment result (EBIT) Q1–Q3 2011 Q1–Q3 2010 % EUROPEAN UNITS 64.7 34.5 + 87.2% AREA UNITS (5.3) (5.7) + 7.5% VENTURES (7.0) (5.2) (34.1%) Acc. to IFRS in million EUR. M
Slide 15: EUROPEAN UNITS segment
EUROPEAN UNITS segment • Increases in important sales markets continued Germany, France, Scandinavia, Russia and GB performed well Spain, Portugal, Greece, Italy, Ireland still weak • Upward trend continued, in particular in cranes and Tail Lifts • Marked improvement in Access Platforms from the
Slide 16: AREA UNITS segment
AREA UNITS segment • Continued improvement of revenue and earnings as compared to the previous year • Good performance in North America, particularly from the second quarter onwards • South America as a growth market; order-based manufacturing has positive impact on earnings • Tremendous growth in t
Slide 17: 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 Growth in China is a priority 17
Slide 18: Key Financial Figures
Key Financial Figures
Slide 19: Financial highlights
Financial highlights Q1–Q3 Q1–Q3 Q1–Q3 % 2011 2010 2009 Revenue 624.0 464.9 387.9 + 34.2% EBITDA 73.5 40.3 12.3 + 82.3% (incl. associated companies)* EBITDA margin 11.8% 8.7% 3.2% – EBIT 52.4 23.7 (3.9) + 121.6% (incl. associated companies)* EBIT margin 8.4% 5.1% (1.0%) – Result before income tax 43
Slide 20: Quarterly figures
Quarterly figures Revenue EBIT (incl. associated companies) 250 223 50 210 200 184 188 187 192 40 168 168 140 129 129 150 119 117 30 100 20 20.9 50 16.2 15.1 16.5 10 13.5 11.0 9.1 0 0 (4.4) (1.5) 0.3 0.9 3.6 (2.7) -50 -10 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11
Slide 21: Capital employed
Capital employed* Net working capital (in relation to revenue) Non-current operating assets 600 521 500 454 450 468 143 (18%) 400 317 144 (25%) 134 (23%) 170 (21%) 300 117 (18%) 200 378 284 306 335 100 200 0 Q1–Q3 2007 Q1–Q3 2008 Q1–Q3 2009 Q1–Q3 2010 Q1–Q3 2011 Targeted capital employed management;
Slide 22: Investment
Investment Investment in property, plant, and equipment Depreciation, amortization, and impairment 60 48.3 50 38.6 40 30 21.1 20 15.7 16.2 16.7 10.7 12.1 10 6.0 6.7 0 Q1–Q3 2007 Q1–Q3 2008 Q1–Q3 2009 Q1–Q3 2010 Q1–Q3 2011 Acc. to IFRS in million EUR. Minor rounding differences may occur. 22
Slide 23: Gearing ratio and equity
Gearing ratio and equity Net debt Equity Gearing % 400 100 % 351.3 350 319.8 315.8 277.3 286.9 300 75 % 250 56.3% 48.2% 169.8 200 133.5 161.5 48.3% 50 % 152.4 150 41.7% 100 25 % 39.4 50 14.2% 0 0% Q1–Q3 2007 Q1–Q3 2008 Q1–Q3 2009 Q1–Q3 2010 Q1–Q3 2011 Gearing below 50 per cent Acc. to IFRS in millio
Slide 24: Balance sheet structure
Balance sheet structure Assets Liabilities Current assets Current liabilities Non-current liabilities Non-current assets Equity 800 735 800 735 645 645 600 600 249 350 164 307 400 400 165 135 200 337 384 200 351 316 0 0 Q3 2010 Q3 2011 Q3 2010 Q3 2011 Long-term financial structure; promissory note l
Slide 25: Financing structure as of 30 September 2011
Financing structure as of 30 September 2011 120 108 Ø Interest rate 4.04% 100 Ø Remaining time to 1.75 years 80 maturity Financial assets EUR 12.8m 60 48 Equity ratio 47.8% 40 33 20 0 Maturity until 2012 2013 after 2013 Acc. to IFRS in million EUR. Minor rounding differences may occur. 25
Slide 26: Cash flow
Cash flow Q1–Q3 2011 Q1–Q3 2010 Q1–Q3 2009 EBTDA 64.0 38.0 5.3 +/– Cash flows from working capital (24.9) (2.3) 30.9 +/– Cash flows from tax payments (8.4) (2.8) (2.6) Cash flows from operating activities 30.7 32.9 33.6 +/– Cash flows from investing activities (33.8) (30.8) (10.8) Cash flows after c
Slide 27: PALFINGER share
PALFINGER share Shareholder structure Shareholder information as of 30 September 2011 ISIN AT0000758305 5% 1% Delta Lloyd PALFINGER AG Number of shares 35,730,000 Share price as of EUR 15.91 29% end of period free float Market capitalization EUR 568.5m Earnings per share EUR 0.92 65% Palfinger famil
Slide 28: Outlook
Outlook
Slide 29: 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 30: Outlook and objectives – externally
Outlook and objectives – externally • Currently increasing uncertainty noticeable in European markets • Stability at a good level expected in South America, Asia, Russia • Situation clearly better for PALFINGER than prior to the crisis of 2008 (low inventories, hardly any cancellation risk, new mark
Slide 31: Research reports
Research reports Berenberg Bank Hauck & Aufhäuser Cheuvreux HSBC Deutsche Bank RCB Erste Bank UBS Goldman Sachs UniCredit Earnings Estimates – consensus (in million EUR) 2011e 2012e Revenue 814.9 814.4 EBIT (incl. associated companies) 74.8 72.4 Earnings per share (EUR) 1.37 1.36 31
Slide 32: Financial calendar 2011/12
Financial calendar 2011/12 Publication of results 10 November 2011 8 February 2012 Balance sheet press conference for the first three quarters of 2011 10 November 2011 Crane seminar Helsinki 16 February 2012 Publication of Annual Report 2011 24 November 2011 Roadshow Milano 8 March 2012 Annual Gener
Slide 33: 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
Slide 34: Backup
Backup
Slide 35: Performance of the PALFINGER share since 2010
Performance of the PALFINGER share since 2010 200 180 160 140 120 DAX 100 PALFINGER AG EUR 15.00 80 ATX 60 4 Jan 2010 3 Jan 2011 31 Oct 2011 35