Slide 1: PALFINGER AG Presentation on the first half of 2012
PALFINGER AG Presentation on the first half of 2012 August 2012
Slide 2: 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 2012 Importance of flexibility and internationality is increasing Acc. to IFRS in EUR million. 2
Slide 3: Highlights
Highlights • Two-digit growth (12.3%) continued to EUR 465.1 million Increases reported primarily outside Europe AREA UNITS contribute 32% to revenue Approx. one third of growth due to acquisitions made in 2011 • EBIT rose slightly to EUR 37.2 million Increases despite build-up of resources
Slide 4: More highlights
More highlights • Sustainability Report 2010/2011 published Fair business: local value creation, ethical Code of Conduct for suppliers, Integrity Line to prevent corruption Responsible employer: employee retention strategy proved successful Eco-efficient production: energy efficiency and aware
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 loader cranes, timber and recycling cranes and container handling systems Number two in tail lifts and truck mounted forklifts Leading specialist in high-tech railway sy
Slide 7: Internationalization
Internationalization Revenue HY1 2011 Revenue HY1 2012 23.2% 32.0% AREA UNITS AREA UNITS 76.8% 68.0% EUROPEAN UNITS EUROPEAN UNITS 7
Slide 8: PALFINGER in China
PALFINGER in China • Strategic options have been explored for over a year • China’s importance as a sales market and competitor is increasing The world‘s largest truck market (> 40%) Largest market worldwide for construction machinery (> 25%) Tremendous growth in truck bodies expected Partners
Slide 9: Growth in the Chinese market
Growth in the Chinese market Number of units of knuckle boom and telescopic cranes 30,000 CAGR + 22% 10,000 7,000 6,000 4,000 3,000 China 2010 China 2017e Japan Brazil Germany France China will become the largest market; limited growth in developed countries Source: PALFINGER 9
Slide 10: Sany Heavy Industry
Sany Heavy Industry • Largest producer of building machinery in China, seventh largest in the world • World market leader in concrete machines • Founded in 1994; today among the world’s 500 largest companies • Approx. 50,000 employees in China, USA, Germany, Brazil, India • Revenue 2011: approx. EUR
Slide 11: Two joint ventures with Sany
Two joint ventures with Sany Sany Palfinger Palfinger Sany (50:50 joint venture): (50:50 joint venture): Crane production in China Sale of mobile cranes Objective: Become the strongest Objective: Become a major player competitor in China and dominate in the mobile cranes market the segment for stand
Slide 12: Segments
Segments
Slide 13: Segment financials
Segment financials Segment revenue HY1 2011 HY1 2012 % EUROPEAN UNITS 318.2 316.0 (0.7%) AREA UNITS 96.1 149.0 + 55.1% VENTURES – – – Segment EBIT HY1 2011 HY1 2012 % EUROPEAN UNITS 44.6 43.5 (2.6%) AREA UNITS (4.3) 3.0 – VENTURES (4.3) (7.6) (75.2%) Acc. to IFRS in EUR million. Minor rounding diffe
Slide 14: EUROPEAN UNITS segment
EUROPEAN UNITS segment • Declines in Europe noticeable Germany and France still reporting growth Spain, Portugal, Greece and Italy remain weak • Business units show heterogeneous development Upward trend in Access Platforms, Tail Lifts and Railway Systems Loader Cranes at previous year‘s lev
Slide 15: AREA UNITS segment
AREA UNITS segment • Revenue increased by 55.1%, EBIT positive since Q4 2011 • Strong growth in North America • Establishment of new products in South America; further increases expected • Further development in Asia marked by market entry in China • First successes in India; expansion of local valu
Slide 16: VENTURES unit
VENTURES unit • Implementation of partnership with Chinese Sany Group • Further development of the Indian, South American and Russian regions • Expansion of business unit Marine Systems • Continuation of cost-related and structural programmes 16
Slide 17: Key financial figures
Key financial figures
Slide 18: Financial highlights
Financial highlights HY1 2010 HY1 2011 HY1 2012 % Revenue 297.4 414.3 465.1 + 12.3% EBITDA 24.9 50.1 52.2 + 4.0% EBITDA margin 8.4% 12.1% 11.2% – EBIT 14.5 36.0 37.2 + 3.3% EBIT margin 4.9% 8.7% 8.0% – Result before income tax 11.9 30.1 31.8 + 5.9% Consolidated net result for the period 7.3 22.6 23.
Slide 19: Quarterly figures
Quarterly figures Revenue EBIT (incl. associated companies) 241 250 223 222 224 50 210 187 192 200 168 168 40 150 129 119 129 30 117 100 20 20.9 19.5 50 16.5 15.5 17.7 10 13.5 15.1 11.0 9.1 0 0 0.3 3.6 (2.7) (1.5) -50 -10 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12
Slide 20: Capital employed
Capital employed* Net working capital (in relation to revenue) Non-current operating assets 600 542 469 458 488 500 445 157 (18%) 400 114 (15%) 161 (21%) 162 (25%) 136 (25%) 300 200 373 385 283 307 322 100 0 HY1 2008 HY1 2009 HY1 2010 HY1 2011 HY1 2012 Increase through expansion of business volume,
Slide 21: Investment
Investment Investment Depreciation, amortization, and impairment 40 28.7 30 23.7 20 15.0 14.1 11.4 11.0 10.4 12.0 9.9 10 6.9 0 HY1 2008 HY1 2009 HY1 2010 HY1 2011 HY1 2012 Acc. to IFRS in EUR million. Minor rounding differences may occur. 21
Slide 22: Gearing ratio and equity
Gearing ratio and equity Net debt Equity Gearing % 400 360.7 100% 350 309.9 313.3 327.9 288.4 300 75% 250 170.8 194.5 157.9 163.4 200 53.9% 50% 59.2% 150 50.4% 49.8% 102.6 100 33.1% 25% 50 0 0% HY1 2008 HY1 2009 HY1 2010 HY1 2011 HY1 2012 Higher dividend and acquisition of properties (Group headquar
Slide 23: Balance sheet structure
Balance sheet structure Assets Liabilities Current liabilities Current assets Non-current liabilities Non-current assets Equity 799 799 800 724 800 724 234 600 408 600 241 350 204 400 400 155 200 374 391 200 328 361 0 0 HY1 2011 HY1 2012 HY1 2011 HY1 2012 Long-term financial structure; promissory no
Slide 24: Financing structure as at 30 June 2012
Financing structure as at 30 June 2012 119 120 Ø Interest rate 2.87% 100 Ø Remaining time to 77 2.28 years 80 maturity Financial assets EUR 12.5m 60 Equity ratio 45.2% 40 24 20 0 Maturity 2012 2013 after 2013 Acc. to IFRS in EUR million. Minor rounding differences may occur. 24
Slide 25: Free cash flows
Free cash flows HY1 2010 HY1 2011 HY1 2012 EBTDA 22.2 44.2 46.8 +/– Non-cash result from 2.1 0.7 (1.0) companies at equity +/– Change in working capital 0.7 (27.5) (30.4) +/– Cash flows from tax payments (1.6) (2.3) (3.6) Cash flows from operating activities 23.4 15.1 11.8 +/– Cash flows from invest
Slide 26: PALFINGER shares
PALFINGER shares Shareholder structure Shareholder information as at 29 June 2012 ISIN AT0000758305 5% 1% Delta Lloyd PALFINGER AG Number of shares 35,730,000 thereof own shares 340,590 29% Share price as at free float EUR 17.95 end of period Market capitalization EUR 641.4m Earnings per share EUR 0
Slide 27: Outlook
Outlook
Slide 28: Outlook and objectives – internally
Outlook and objectives – internally • Internationalization strategy to be continued Focus remains on Asia and Russia Expansion of product portfolio in the areas • Start-up of the China joint ventures planned before the end of 2012 • Further increase in flexibility throughout all units • Complexi
Slide 29: Outlook and objectives – externally
Outlook and objectives – externally • Weak economic development in Europe • Market growth in non-European regions expected, primarily in BRIC countries • Persistent volatility in demand noticeable PALFINGER strives to increase revenue slightly in 2012 29
Slide 30: Research reports
Research reports Berenberg Bank Hauck & Aufhäuser Cheuvreux HSBC Deutsche Bank Kepler Erste Group RCB Goldman Sachs UBS Earnings Estimates – consensus (EUR million) 2012e 2013e Revenue 892.6 962.2 EBIT 70.7 87.4 Earnings per share (EUR) 1.23 1.53 30
Slide 31: Financial calendar 2012/2013
Financial calendar 2012/2013 Publication of results for the 9 November 2012 first three quarters of 2012 11 February 2013 Balance sheet press conference 6 March 2013 Annual General Meeting 31
Slide 32: 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-looking s
Slide 33: Performance of PALFINGER shares since 2011
Performance of PALFINGER shares since 2011 120 100 DAX 80 ATX 60 PALFINGER AG EUR 16.06 40 3 Jan 2011 2 Jan 2012 27 July 2012 33