Slide 1: Another record in revenue
PALFINGER AG Another record in revenue Two-digit operating profitability achieved Presentation on the results for the first quarter of 2017 April 2017
Slide 2: Growth despite market volatility
GROWTH DESPITE MARKET VOLATILITY REVENUE, GROWTH AND VOLATILITY (QUARTERS) LAND segment from 2009 to 2016: +153% SEA segment from 2011 to 2016: +1,308% Quarterly result EUR Total revenue 297.2m 300 +168.5% 2009–2016 CAGR: 15.2% 200 EUR 117.5m EUR Q1/2011 64.6m EUR 4.6m 2010 2011 2012 2013 2014 2015
Slide 3: Highlights Q1
HIGHLIGHTS Q1 Continued growth; two-digit EBITn margin » Substantial increase in sales in Europe and CIS » Establishment of PALFINGER Iberica and acquisition of Palfinger Danmark have positive effect » North America and China satisfactory » Service body business sold » Stagnation in South America, b
Slide 4: Strategic highlights Q1
STRATEGIC HIGHLIGHTS Q1 Sky Steel Systems » 20% investment in Sky Steel Systems, Dubai, producer of building maintenance tools and facade access equipment Palfinger Danmark » Takeover of sales organization from former owner, who will focus on the company’s core business Restructuring » North America
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 Revenue: approx. EUR 1.4bn, approx. 9,970 employees (2016) » 36 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 truck moun
Slide 8: Internationalization
INTERNATIONALIZATION STRATEGIC TARGET REVENUE Q1 20171) ASIA AND PACIFIC ASIA AND PACIFIC CIS CIS EMEA 20.7% ⅓ ⅓ AMERICAS 20.3% 59.0% ⅓ AMERICAS EMEA 1) Including joint ventures. 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, lifting and handling systems Loader cranes 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 6.0% to EUR 297.2 million » Significant expansion of business in EMEA and CIS » Positive effect of PALFINGER Iberica and Palfinger Danmark » Substantial success of restructuring in North America » M
Slide 13: Financials LAND segment
FINANCIALS LAND SEGMENT Q1 2016 Q1 2017 % Revenue 280.4 297.2 +6.0% EBITDAn1) 44.1 51.7 +17.2% EBITDAn margin1) 15.7% 17.4% – EBITn1) 35.0 41.6 +18.8% EBITn margin1) 12.5% 14.0% – Restructuring costs 0.9 3.6 +300.0% è Increase in incoming orders confirm PALFINGER’s strategic positioning 1) Starting
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 mari@me 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 8 production sites 16 service centres (approx. 300 PALFINGER service staff) 16
Slide 17: Highlights SEA segment
HIGHLIGHTS SEA SEGMENT Revenue increased by 68.6% to EUR 64.6 million » Harding contributed EUR 27.6 million to revenue » Revenue, excluding Harding, kept at same level » Share of segment revenue in consolidated revenue rose to 17.9% » Strained situation in the oil and gas industry continues » Incre
Slide 18: Financials SEA segment
FINANCIALS SEA SEGMENT Q1 2016 Q1 2017 % Revenue 38.3 64.6 +68.6% EBITDAn1) 2.8 2.1 (24.4%) EBITDAn margin1) 7.3% 3.3% – EBITn1) 1.8 (1.3) – EBITn margin1) 4.6% (1.9%) – Restructuring costs 0.7 1.2 +71.4% è First signs of gradual revival of investment activity in some customer industries 1) Starting
Slide 19: Key financials
KEY FINANCIALS 19
Slide 20: Key financials
KEY FINANCIALS Q1 2015 Q1 2016 Q1 2017 % Revenue 292.3 318.8 361.9 +13.5% EBITDAn1) 34.9 42.8 50.9 +18.7% EBITDAn margin1) 11.9% 13.4% 14.1% – EBITn1) 25.1 32.0 36.6 +14.4% EBITn margin1) 8.6% 10.0% 10.1% – Result before income tax 20.9 27.1 29.2 +7.6% Consolidated net result for the 14.4 18.6 19.4
Slide 21: Current capital
CURRENT CAPITAL 1) Current capital CC ratio 600 40% 500 28.6% 29.3% 28.2% 27.7%2) 26.0% 30% 400 320 388 268 286 300 327 20% 200 10% 100 0 0% 1 2 3 4 5 Q1 2013 Q1 2014 Q1 2015 Q1 2016 Q1 2017 è Increase due to the acquisitions made 1) Current capital (average) in proportion to revenue of the previous
Slide 22: Investments
INVESTMENTS Net investments Depreciation, amortization and impairment 20 17.3 13.7 14.3 15 12.5 12.4 11.1 10.8 9.8 10 8.6 7.5 5 0 Q1 2013 Q1 2014 Q1 2015 Q1 2016 Q1 2017 è Investments to expand production capacities and replacement investments Acc. to IFRS in EUR million. Minor rounding differences
Slide 23: Gearing ratio and equity
GEARING RATIO AND EQUITY Net debt Equity Gearing % 700 92.7% 100% 600 80.8% 68.6% 573.9 73.4% 505.6 523.3 80% 500 64.5% 492.1 373.5 397.7 60% 400 362.3 346.8 300 274.2 233.7 40% 200 20% 100 0 0% Q1 2013 Q1 2014 Q1 2015 Q1 2016 Q1 2017 è Acquisition of Harding increased net debt, but solid developmen
Slide 24: Free cash flows
FREE CASH FLOWS Q1 2015 Q1 2016 Q1 2017 EBTDA 30.7 38.0 43.5 +/– Non-cash result from 3.3 1.7 (1.4) companies at equity +/– Change in working capital (25.9) (8.1) (15.6) +/– Cash flows from tax payments (2.1) (0.5) (2.7) Cash flows from operating activities 6.0 31.1 23.8 +/– Cash flows from investin
Slide 25: Outlook
OUTLOOK 25
Slide 26: Outlook and objectives
OUTLOOK AND OBJECTIVES High level of incoming orders and good capacity utilization give reason to expect positive business development Most of the restructuring measures in North America and in the marine business to be completed within the coming months Group-wide initiatives with a focus on custom
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 900 850 855 30% 800 798 700 588 623 600 20% 598 575 500 374 355 400 9.9% 300 9.5% 8.8 % 10% 6.5% 7.2% 200 302 85 79 257 275 233 249
Slide 30: Balance sheet structure
BALANCE SHEET STRUCTURE ASSETS LIABILITIES Equity Non-current assets Current assets Non-current liabilities Current liabilities 1800 1,589 1800 1,589 1600 1600 1400 1,226 1400 1,226 378 1200 666 1200 1000 529 1000 329 800 800 637 600 600 391 400 697 923 400 200 200 506 574 0 0 Q1 2016 Q1 2017 Q1 201
Slide 31: Financing structure as at 31 March 2017
FINANCING STRUCTURE AS AT 31 MARCH 2017 400 Financial liabilities (FL) EUR 605.5m 314 Ø Interest rate FL 2.02% 300 Ø Remaining time to 3.94 years maturity FL 204 Cash equivalents EUR 35.9m 200 Net debt EUR 532.3m Equity ratio 36.1% 100 88 Gearing 92.7% Net debt/EBITDA 3.31 0 Maturity 0–1 years 1–5 y
Slide 32: Palfinger shares
PALFINGER SHARES SHAREHOLDER STRUCTURE SHAREHOLDER INFORMATION AS AT 31 MARCH 2017 10% ISIN AT0000758305 SANY Group Number of shares 37,593,258 Share price EUR 34.70 as at end of period 31% Market capitalization EUR 1.3bn free float Earnings per share EUR 0.52 59% Palfinger family 32
Slide 33: Performance of Palfinger shares since 2016
PERFORMANCE OF PALFINGER SHARES SINCE 2016 160 PALFINGER AG EUR 35.85 140 ATX 120 DAX 100 4 Jan 2016 2 Jan 2017 21 Apr 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 1,456.4 1,534.3 EBIT 133.9 161.2 Earnings per share (EUR) 2.14 2.62 34