Slide 1: New Structures, Strong Business
Presentation on the results for the first quarter of 2019 NEW STRUCTURES, STRONG BUSINESS. Bergheim, 30 April 2019
Slide 2: Q1 2019 Revenue and earnings reached new record levels
Q1 2019 Revenue and earnings reached new record levels. GPO implemented at the beginning of the year. 2019 is expected to be a strong year. 2
Slide 3: The PALFINGER Group is the world's leading supplier of lifting solutions
THE PALFINGER GROUP IS THE WORLD’S LEADING SUPPLIER OF LIFTING SOLUTIONS. 3
Slide 4: Palfinger's position as market leader – underscored by the 2018 figures
PALFINGER’S POSITION AS MARKET LEADER – UNDERSCORED BY THE 2018 FIGURES. GROUP LAND SEA REVENUE EUR 1.6 billion EUR 1.4 billion EUR 0.2 billion EMPLOYEES 10,780 8,899 1,528 35 5,000 25 LOCATIONS production sites service centres worldwide service centres worldwide 58% EMEA REVENUE 24% NAM, LATAM DIST
Slide 5: PALFINGER Lifting Solutions – solutions for every challenge
PALFINGER LIFTING SOLUTIONS – SOLUTIONS FOR EVERY CHALLENGE. SEA MARINE & WIND CRANE TIMBER/RECYCLING HOOKLIFT PLATFORMS DAVITS CRANES TRUCK TAIL & PASSENGER RAIL & SYSTEMS OFFSHORE BOATS MOUNTED LIFTS SOLUTIONS LIFTING & FORK LIFT HANDLING SOLUTIONS LAND 5
Slide 6: From a provider of products into a one-stop-shop provider of solutions
THE PALFINGER GROUP IS DEVELOPING FROM A PROVIDER OF PRODUCTS INTO A ONE-STOP-SHOP PROVIDER OF SOLUTIONS. Solution ONE-STOP-SHOP provider SOLUTIONS DIGITALIZATION WITH CONNECTED PRODUCTS MECHATRONIC Product PRODUCTS provider 2018 2022 STEP 1 STEP 2 STEP 3 • GPO (product lines, • Development of smart
Slide 7: PALFINGER uses global structures to live up to its promise of performance
PALFINGER USES GLOBAL STRUCTURES TO LIVE UP TO ITS PROMISE OF PERFORMANCE. CIS NAM Production: 5 | R&D: 2 Production: 5 | R&D: 4 EMEA LATAM Production: 16 | R&D: 9 Production: 2 | R&D: 2 APAC Production: 2 | R&D: 1 Production R&D SEA Production: 6 | R&D: 7 7
Slide 8: Sales & Service Land
SEGMENT SALES & SERVICE LAND 8
Slide 9: Strong demand in all markets
STRONG DEMAND IN ALL MARKETS. SALES & SERVICE LAND 1 Good order intake for loader cranes, timber and recycling cranes, hooklifts and skiploaders 2 Higher revenue in all regions PALFINGER demonstrated market leadership at 3 bauma, the leading trade fair for the construction machinery and crane indust
Slide 10: Strong increase in revenue
STRONG INCREASE IN REVENUE. SALES & SERVICE LAND EUR million Q1 20181) Q1 2019 Δ% External revenue 312.4 360.5 +15.4% EBITDA 42.0 50.0 +19.0% EBIT 39.5 44.5 +12.7% EBIT margin 12.6% 12.3% – 1) Previous year‘s figures adjusted to new segment reporting with retrospective effect. Acc. to IFRS, minor ro
Slide 11: Operations Land
SEGMENT OPERATIONS LAND 4 ats p> \ Hh
Slide 12: Tension in the supply chain
TENSION IN THE SUPPLY CHAIN. OPERATIONS LAND 1 High capacity utilization at the production plants 2 Supply chain still under strain 3 Staff availability poses a challenge 12
Slide 13: High capacity utilization boosts profitability
HIGH CAPACITY UTILIZATION BOOSTS PROFITABILITY. OPERATIONS LAND EUR million Q1 20181) Q1 2019 Δ% External revenue 25.4 33.4 +31.5% EBITDA 15.0 19.8 +32.0% EBIT 5.8 11.7 +101.7% 1) Previous year‘s figures adjusted to new segment reporting with retrospective effect. Acc. to IFRS, minor rounding differ
Slide 14: Segment SEA
SEGMENT SEA 14
Slide 15: Pick-up in demand from oil and gas industry
PICK-UP IN DEMAND FROM OIL AND GAS INDUSTRY. SEGMENT SEA 1 Recovery of oil and gas market; Continued growth in the fisheries, fish farming,cruise and coast guard sectors Increasing orders from oil and gas industy; 2 contract for equipment for 2 cruise ships 3 Restructuring costs in Q1: EUR 4.2 milli
Slide 16: Adjustment of structures to be completed in Q2
ADJUSTMENT OF STRUCTURES TO BE COMPLETED IN Q2. SEGMENT SEA EUR million Q1 20181) Q1 2019 Δ% External revenue 56.4 47.1 (16.5%) EBITDA (1.0) (3.0) (200.0%) EBIT (6.0) (6.8) (13.3%) EBIT margin (10.7%) (14.3%) – 1) Previous year‘s figures adjusted to new segment reporting with retrospective effect. A
Slide 17: Segment Holding
SEGMENT HOLDING 17
Slide 18: Progress in future-oriented initiatives
PROGRESS IN FUTURE-ORIENTED INITIATIVES. SEGMENT HOLDING 1 PALFINGER 21st: first outcomes in the fields of digitalization and new business models 2 GPO implementation costs affected Q1 figures 3 Substantial investments for implementation of globally uniform ERP system (S/4HANA) 18
Slide 19: Initiatives involve higher expenditures
INITIATIVES INVOLVE HIGHER EXPENDITURES. SEGMENT HOLDING EUR million Q1 2018 Q1 2019 Δ% EBITDA (4.9) (5.4) (10.2%) EBIT (5.7) (6.7) (17.5%) Acc. to IFRS, minor rounding differences may occur. 19
Slide 20: PALFINGER Group
PALFINGER PALFINGER GROUP GROUP 20
Slide 21: Top performance of revenue and earnings
TOP PERFORMANCE OF REVENUE AND EARNINGS. EUR million Q1 2018 Q1 2019 Δ% Revenue 394.2 440.9 +11.8% EBITDA 51.0 61.2 +20.0% EBITDA margin 12.9% 13.9% – EBIT 33.6 42.7 +27.3% EBIT margin 8.5% 9.7% – EBT 29.8 38.4 +28.8% Consolidated net result for the period 17.9 21.1 +18.1% Acc. to IFRS, minor roundi
Slide 22: Investments lower than in previous year, but still at high level
INVESTMENTS LOWER THAN IN PREVIOUS YEAR, BUT STILL AT HIGH LEVEL. EUR million 25 21.8 20 18,21) 18.5 17.3 17.5 15 13.7 14.3 12.5 10.8 9.8 10 5 0 Q1 2015 Q1 2016 Q1 2017 Q1 2018 Q1 2019 Net investments 1) Including additions from leases (IFRS 16); excluding divestment of 2.5% of Sany Lifting Solution
Slide 23: ROCE is improving towards target level
ROCE IS IMPROVING TOWARDS TARGET LEVEL. EUR million 1.200 1,100 1,111 20% 1,034 1.000 851 855 15% 800 9.9% 600 8.5% 10% 7.2% 6.5% 400 5% 200 1.8% 0 0% 1) 2) Q1 2015 Q1 2016 Q1 2017 Q1 2018 Q1 2019 1) Including 2017 restatement. 2) Including additions from leases (IFRS 16). Capital employed3) 3) Aver
Slide 24: Solid balance sheet structure with an upward trend
SOLID BALANCE SHEET STRUCTURE WITH AN UPWARD TREND. EUR million 31 Mar 2018 31 Mar 20191) Financial liabilities (FL) 602.0 633.5 Ø Interest rate FL 1.75% 1.67%2) Ø Remaining time to 3.69 years 4.66 years maturity FL Cash equivalents 27.1 28.4 Net debt 539.1 577.4 Equity 503.4 573.3 1) Including EUR
Slide 25: Significant improvement of all balance sheet KPIs despite IFRS 16
SIGNIFICANT IMPROVEMENT OF ALL BALANCE SHEET KPIs DESPITE OF IFRS 16. 31 Mar 2018 31 Mar 2019 Equity ratio 33.4% 35.0% Gearing 107.1% 100.7% Net debt/EBITDA 3.13 2.79 Acc. to IFRS, minor rounding differences may occur. 25
Slide 26: Sale of Sany shares leads to high free cash flows
SALE OF SANY SHARES LEADS TO HIGH FREE CASH FLOWS. EUR million Q1 2018 Q1 2019 EBTDA 47.3 56.9 +/– Non-cash result from companies at equity (0.3) (0.2) +/– Change in working capital (20.4) (20.0) +/– Cash flows from tax payments (6.9) (8.1) Cash flows from operating activities 19.7 28.6 +/– Cash flo
Slide 27: 2019 had a strong start
2019 HAD A STRONG START. 27
Slide 28: Added value due to re-positioning (GPO)
ADDED VALUE DUE TO RE-POSITIONING (GPO) – IN EXCELLENT SHAPE FOR THE FUTURE. 28
Slide 29: Our future is integrated, connected & customer-oriented
OUR FUTURE IS INTEGRATED, CONNECTED & CUSTOMER- ORIENTED. 29
Slide 30: Digital bridge inspection
STRUCINSPECT DIGITAL BRIDGE INSPECTION. First marketable solution of PALFINGER 21st. 30
Slide 31: Good prospects for 2019 as a whole
Further focus on realizing potential and integration High order book and good order intake Revenue growth to EUR 1.7 billion expected EBIT margin of 9% targeted GOOD PROSPECTS FOR 2019 AS A WHOLE. 31
Slide 32: Together we are shaping the future of our customers' lifting solutions
TOGETHER WE ARE SHAPING THE FUTURE OF OUR CUSTOMERS’ LIFTING SOLUTIONS. PALFINGER.AG 32
Slide 33: Investor Relations
INVESTOR RELATIONS ANDREAS KLAUSER FELIX STROHBICHLER PALFINGER AG CEO CFO Lamprechtshausener Bundesstrasse 8 5101 Bergheim Phone +43 662 2281-81008 Phone +43 662 2281-81006 a.klauser@palfinger.com f.strohbichler@palfinger.com www.palfinger.ag HANNES ROITHER Company Spokesperson Phone +43 662 2281-8