Slide 1: Emerging stronger from the crisis
PALFINGER AG Emerging stronger from the crisis Presentation on the first quarter 2010 May 2010
Slide 2: 2007–2010 in fast motion: Emerging stronger from the crisis
2007–2010 in fast motion: Emerging stronger from the crisis Start of reduction in fixed costs Cutbacks in Demand and temporary workers revenue on the rise Capacity utilisation decreases, strengthening of structure Further reduction of assets and earnings, in current fixed cost savings capital employ
Slide 3: Highlights
Highlights • Slight improvement of market environment since the end of 2009 Increases as compared to the fourth quarter 2009 in all regions • Revenues trend positive again EUR 129.4 million as compared to EUR 117.5 million in the fourth quarter 2009 • Sustainable structural and cost-related meas
Slide 4: Strategy
Strategy
Slide 5: PALFINGER at a glance
PALFINGER at a glance • Leading international manufacturer of hydraulic lifting, loading, and handling systems at each interface of the transport chain • Innovation and diversification in 10 product groups Number one in knuckle boom cranes, timber and recycling cranes, and container handling syste
Slide 6: Positioning
Positioning Internationalisation el od m ss Pr ne od i uc us t Innovation b s/ es oc Pr Backward integration Employees Forward integration (value-creation chain) (market) s es Ef fic O en rg ie iv an nc ct is fe y at Ef y io lit na ua ls Q tru ct ur e Diversification 6
Slide 7: Internationalisation
Internationalisation Revenue Q1 2009 Revenue Q1 2010 17.2% 23.6% AREA UNITS AREA UNITS 82.8% 76.4% EUROPEAN UNITS EUROPEAN UNITS 7
Slide 8: Diversification
Diversification Con- Transport, Local Agriculture Product divisions Recycling Service Other struction commerce authorities & forestry Knuckle boom cranes Timber and recycling cranes Telescopic cranes (South America) Truck bodies (North America) Container handling system
Slide 9: Strategic activities
Strategic activities • Strengthening of the Group‘s earnings and assets Comprehensive programme completed in 2009 Focus in 2010: Capital employed management • Project to reduce current capital employed is to increase financial flexibility • Majority stakeholding in ETI (80 percent) Top player
Slide 10: Segments
Segments
Slide 11: New PALFINGER organisational structure
New PALFINGER organisational structure • In line with the growth achieved in recent years and the challenges to be faced in the years to come • Focus on internationalisation (Europe and areas) • Increased independence of regions and product units – local products for local customer needs • Bundling
Slide 12: New segmentation from 2010 onwards
New segmentation from 2010 onwards EUROPEAN UNITS AREA UNITS VENTURES segment segment segment • Business unit Knuckle Boom • Area North America Cranes • Area South America • Business unit Timber • Area Asia and Pacific and Recycling Cranes • Area India • Business unit Tail Lifts • Area CIS • Busines
Slide 13: Segment financials
Segment financials Revenue Q1 2010 Q1 2009 % EUROPEAN UNITS 98.8 116.2 (15.0%) AREA UNITS 30.6 24.2 + 26.7% VENTURES – – – Segment result Q1 2010 Q1 2009 % EUROPEAN UNITS 9.0 0.8 – AREA UNITS (3.9) (2.7) + 41.8% VENTURES (1.6) (0.8) (106.8%) Acc. to IFRS in million EUR Minor rounding differences may
Slide 14: EUROPEAN UNITS
EUROPEAN UNITS • Dramatic declines in the first half 2009, in particular in cranes, access platforms, and hookloaders • Slight recovery in the most important sales markets noticed recently, direct impact on revenue due to very low inventories Increases in Germany, France; Spain, Great Britain, Ire
Slide 15: AREA UNITS
AREA UNITS • Rise in revenue of 26.7% reflects increasing importance • Solid basis for continued growth created in North America Initial consolidation of ETI in mid-April • South America: Increasing demand in Brazil • Asia and Pacific: Revenue doubled, but at a low level • India: Establishment of
Slide 16: VENTURES
VENTURES • Coordination of the CC-Top (current capital) project • Majority stakeholding in ETI completed • Establishment of an assembly plant in India • Additional projects for the expansion of the AREA UNITS segment underway 16
Slide 17: Key financial figures
Key financial figures
Slide 18: Financial highlights
Financial highlights Q1 2010 Q1 2009* Q1 2008 Revenue 129.4 140.4 208.9 EBITDA 8.3 2.0 34.3 EBITDA margin 6.4% 1.4% 16.4% EBIT 3.4 (3.3) 29.5 EBIT margin 2.7% (2.4%) 14.1% Result before income tax 2.3 (4.8) 29.5 Consolidated net result for the period 0.8 (4.1) 22.2 * In the course of the final purch
Slide 19: Quarterly figures
Quarterly figures Revenue EBIT 250 50 209 215 191 184 188 200 178 40 164 150 140 129 129 30 119 117 29.5 29.8 100 27.0 26.3 20 22.4 50 15.3 10 0 0 (5.6) (3.3) (0.2) 1.0 3.4 (2.6) -50 -10 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 EBIT 15.2% 13.6% 13.8% 14.1% 13.9% 8.3% (
Slide 20: Capital employed
Capital employed Net Working Capital Non-current operating assets 476 500 442 370 400 165 129 300 263 123 229 200 95 81 311 313 100 247 148 168 0 Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Targeted capital employed management Acc. to IFRS in million EUR Minor rounding differences may occur. 20
Slide 21: Investment
Investment Investment in property, plant, and equipment Depreciation, amortisation, and impairment 20 15.7 15 12.5 10 3.6 3.2 4.8 4.5 5.3 4.9 5 3.2 1.4 0 Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Investment programme 2006–2008 completed Acc. to IFRS in million EUR Minor rounding differences may occur.
Slide 22: Gearing ratio and equity
Gearing ratio and equity Net debt Equity Gearing % 350 80% 287.8 291.1 295.2 300 70% 245.3 63.4% 49.6% 60% 250 197.1 50% 200 184.6 28.7% 146.5 40% 150 82.6 30% 100 16.0% 20% 31.5 7.4% 50 10% 18.1 0 0% Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Acc. to IFRS in million EUR Minor rounding differences may
Slide 23: Financing structure as of 31 March 2010
Financing structure as of 31 March 2010 120 103 Ø interest rate 4.15% 100 Ø remaining time to maturity 2.52 years 80 Financial assets EUR 41.5 million 56 Equity ratio 48.0% 60 40 29 20 0 Maturity < 1 year up to > 2 years 2 years Acc. to IFRS in million EUR Minor rounding differences may occur. 23
Slide 24: Cash flows
Cash flows Q1 2010 Q1 2009 Q1 2008 EBTDA 7.1 (0.1) 33.3 +/– Cash flows from working capital 2.1 3.9 (18.9) +/– Cash flows from tax payments 0.1 0.4 (3.5) Cash flows from operating activities 9.3 4.3 10.9 Cash flows from investing activities (2.6) (6.1) (11.8) Cash flows after changes in working 6.7
Slide 25: PALFINGER share
PALFINGER share Shareholder structure Shareholder information as of 31 March 2010 ISIN AT0000758305 34% 1% PALFINGER AG Number of shares 35,730,000 Free float* Share price as of end EUR 16.81 of period Market capitalisation EUR 600.6 Earnings per share EUR 0.02 65% Palfinger family * of which > 5% A
Slide 26: Outlook
Outlook
Slide 27: Outlook and objectives – externally
Outlook and objectives – externally • Recovery of important markets expected to continue • Visibility currently slightly raised • New crane standard will increase demand in the second quarter for a short period of time • Macroeconomic development remains uncertain • Organic growth of 10–15 percent s
Slide 28: Outlook and objectives – internally
Outlook and objectives – internally • Development of demand directly reflected in order intake • Flexibility of value-creation process as a material factor of success • Investment in market activities and strong network will be continued • Additional growth pursued in young areas (Russia, India) Mar
Slide 29: Research reports
Research reports Berenberg Bank HSBC Cheuvreux Raiffeisen Centrobank Deutsche Bank UBS Erste Bank UniCredit Goldman Sachs Earnings estimates – consensus (million EUR) 2010e 2011e Revenue 586.0 673.6 EBIT 33.3 61.2 Earnings per share (EUR) 0.49 1.05 29
Slide 30: Financial calendar 2010
Financial calendar 2010 17 May 2010 Conference Stockholm 17 September 2010 Press day Frankfurt 20/21 May 2010 Conference Frankfurt 19 October 2010 Roadshow London 1 June 2010 Roadshow Dublin 20 October 2010 Roadshow Frankfurt 2/3 June 2010 Conference London 5 November 2010 Press day Vienna – Munich
Slide 31: Investor Relations
Investor Relations Herbert Ortner, CEO Phone: +43 662 46 84-2222 h.ortner@palfinger.com Hannes Roither, Company Spokesperson Daniela Werdecker, Corporate Communications Phone: +43 662 46 84-2260 Phone: +43 662 46 84-2219 h.roither@palfinger.com d.werdecker@palfinger.com PALFINGER AG Franz-Wolfram-Sc