Slide 1: Continuation of growth: Presentation on the 2017 financial year
PALFINGER AG Continuation of growth Measures to increase profitability Use of opportunities arising from digitalization Presentation on the 2017 financial year 8 February 2018
Slide 2: Felix Strohbichler, CFO
FELIX STROHBICHLER, CFO 2
Slide 3: The Palfinger Group – An Overview
THE PALFINGER GROUP – AN OVERVIEW Global market leader Revenue: approx. EUR 1.5 bn, 10,212 employees (year end 2017) » 38 production sites 60.9% EMEA – 23.6% Americas – 15.5% Asia and Pacific, CIS LAND: approx. EUR 1.2bn SEA: approx. EUR 0.2bn » 8,200 employees » 1,700 employees » 5,000 service cent
Slide 4: Constant Growth – Organic and Through Acquisitions
CONSTANT GROWTH – ORGANIC AND THROUGH ACQUISITIONS LAND segment from 2009 to 2017: +174% SEA segment from 2011 to 2017: +1,132% Quarterly revenue 400 Total revenue EUR +191.1% 2009–2017 321.4m 300 CAGR: 14.3%1) 2010 to 2017 24 acquisitions and joint ventures 200 Sky Steel Systems Palfinger Danmark P
Slide 5: Highlights 2017
HIGHLIGHTS 2017 Significant expansion of business with increase in EBIT, primarily in Europe and CIS Continued completion of product portfolio Continuous innovation efforts to secure market leadership Focus on increase in profitability through consistent restructuring (primarily in North America and
Slide 6: Martin Zehnder, President LAND
MARTIN ZEHNDER, PRESIDENT LAND 6
Slide 7: The World Is Changing at a Rapid Pace
THE WORLD IS CHANGING AT A RAPID PACE 7
Slide 8: Together We Are Shaping the Future of Our Customers' Lifting Solutions
TOGETHER WE ARE SHAPING THE FUTURE OF OUR CUSTOMERS’ LIFTING SOLUTIONS PALFINGCR INNOVATION | INTERNATION- ¥ y- ee er “ = | FLEXIBILITY PALFINGER 2IST ALIZATION LIFETIME EXCELLENCE TURNKEY SOLUTIONS V oy 1 EEE PROCESS EXCELLENCE a
Slide 9: Digitalization Projects in the Pipeline
DIGITALIZATION PROJECTS IN THE PIPELINE Internet of Things » Focus on connectivity: using the data of PALFINGER products » Providing customer-specific data, e.g. for fleet management » Development of new business models on the basis of these data Smart solutions/products » Use of augmented reality a
Slide 10: The Palfinger Group in 2017
THE PALFINGER GROUP IN 2017 12
Slide 11: LAND Segment
LAND SEGMENT 11
Slide 12: 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 Stiff boom cranes Access platforms Tail lifts Hooklifts and skiploaders Truck mounted forklifts Passenger lifts Bridge i
Slide 13: Global Footprint – LAND Segment
GLOBAL FOOTPRINT – IN SALES, SERVICE, PRODUCT DEVELOPMENT AND VALUE CREATION 20 R&D centres 30 production sites LAND 5,000 service centres (approx. 10,000 service staff / of which approx. 700 PALFINGER) 13
Slide 14: Highlights LAND Segment
HIGHLIGHTS LAND SEGMENT Growth based on expansion of business in EMEA and CIS, revenue increased by 6.6% to EUR 1,230.2 million » Significant expansion of business in EMEA, CIS and China » Acquisition of the Danish dealer » Interest in Sky Steel Systems » Acquisition of dealers (Spain, Portugal, Den
Slide 15: SEA Segment
SEA SEGMENT FELIX STROHBICHLER PRESIDENT SEA, CFO 15
Slide 16: Product Portfolio SEA Segment
PRODUCT PORTFOLIO SEA SEGMENT PALFINGER MARINE is the leading manufacturer of high-end deck equipment in the maritime sector Cranes Lifesaving equipment Winches & handling solutions Rope access 16
Slide 17: Global Footprint – SEA Segment
GLOBAL FOOTPRINT – IN SALES, SERVICE, PRODUCT DEVELOPMENT AND VALUE CREATION 9 R&D centres 10 production sites SEA 28 service centres (approx. 300 PALFINGER service staff) 17
Slide 18: Highlights SEA Segment
HIGHLIGHTS SEA SEGMENT Revenue increased by 18.6% to EUR 240.9 million » Harding contributed EUR 101.6 million to revenue » Share of segment revenue in consolidated revenue rose to 16.4% » Strained situation in the oil and gas industry continued » Stabilization of market at low level » Consolidation
Slide 19: Key Financials
KEY FINANCIALS 21
Slide 20: Financials LAND Segment
FINANCIALS LAND SEGMENT 2016 2017 % Revenue 1,153.9 1,230.2 +6.6% EBITDAn1) 175.6 201.4 +14.6% EBITDAn margin1) 15.2% 16.4% – EBITn1) 138.4 160.8 +16.2% EBITn margin1) 12.0% 13.1% – Restructuring costs 9.5 13.3 +40.0% Growth with extraordinarily high increase in earnings 1) Figures normalized (n) by
Slide 21: Financials SEA Segment
FINANCIALS SEA SEGMENT 2016 2017 % Revenue 203.1 240.9 +18.6% EBITDAn1) 11.5 3.2 (72.2%) EBITDAn margin1) 5.6% 1.3% – EBITn1) 2.9 (9.4) – EBITn margin1) 1.4% (3.9%) – Restructuring costs 6.1 5.5 (9.8%) Business expansion due to Harding acquisition; earnings affected by market environment, restructur
Slide 22: Key Financials of the Palfinger Group
KEY FINANCIALS OF THE PALFINGER GROUP 2015 2016 2017 % Revenue 1,229.9 1,357.0 1,471.1 +8.4% EBITDAn1) 154.4 172.5 186.0 +7.8% EBITDAn margin1) 12.6% 12.7% 12.6% – EBITn1) 113.4 123.7 129.7 +4.8% EBITn margin1) 9.2% 9.1% 8.8% – EBIT 104.4 106.0 110.2 +3.9% Consolidated net result 64.4 61.2 52.5 (14.
Slide 23: Return on Capital Employed
RETURN ON CAPITAL EMPLOYED 1) 1) 1) Capital employed Net working capital Return on capital employed % 1100 1091 40% 1000 976 900 835 800 30% 705 700 600 591 20% 500 400 9.6% 300 9.0% 7.4% 8.1% 7.5% 10% 200 302 256 276 234 248 100 0 0% 2) 2) 2) 2013 2014 2015 2016 2017 1) Annual average. 2) Figures a
Slide 24: Investments
INVESTMENTS Net investments Depreciation, amortization and impairment 80 71.4 65.9 1) 68.3 70 60.4 57.2 60 50.0 50 41.0 38.6 40 31.7 31.7 30 20 10 0 2013 2014 2015 2016 2017 Enlargement of production capacities and replacement investments 1) Adjusted by acquisition of interest in SANY, total: EUR 17
Slide 25: Gearing Ratio and Equity
GEARING RATIO AND EQUITY Net debt Equity Gearing % 700 88.5% 89.2% 100% 600 78.4% 575.7 80% 68.1% 513.1 579.9 513.3 500 454.7 57.9% 510.7 60% 400 356.6 347.9 379.7 300 40% 220.0 200 20% 100 0 0% 2013 2014 2015 2016 2017 Sound balance sheet structure, high equity ratio Acc. to IFRS in EUR million. Mi
Slide 26: Financing Structure as at 31 Dec 2017
FINANCING STRUCTURE AS AT 31 DEC 2017 300 282 Financial liabilities (FL) EUR 592.2m Ø Interest rate FL 1.78% Ø Remaining time to 200 3.73 years 179 maturity FL Cash equivalents EUR 39.8m 131 Net debt EUR 513.3m 100 Equity ratio 37.3% Gearing 89.2% Net debt/EBITDA 3.07 0 Maturity 0–1 years 1–5 years
Slide 27: Free Cash Flows
FREE CASH FLOWS 2015 2016 2017 EBTDA 133.9 143.2 145.7 +/– Non-cash result from (4.0) (3.6) (6.5) companies at equity +/– Change in working capital (11.0) 0.1 (27.2) +/– Cash flows from tax payments (8.3) (30.1) (20.0) Cash flows from operating activities 110.6 109.6 92.0 +/– Cash flows from investi
Slide 28: Outlook
OUTLOOK 30
Slide 29: Outlook and Objectives
OUTLOOK AND OBJECTIVES Continuously high level of incoming orders gives reason to expect further positive business development and operating profitability Restructuring measures in North America (to be completed in the first half of 2018) and in the marine business continue to affect earnings Evalua
Slide 30: Investor Relations
INVESTOR RELATIONS Felix Strohbichler, CFO Hannes Roither, Company Spokesperson Phone +43 662 2281-81008 Phone +43 662 2281-81100 f.strohbichler@palfinger.com h.roither@palfinger.com PALFINGER AG Lamprechtshausener Bundesstrasse 8 5101 Bergheim www.palfinger.ag This presentation contains forward-loo