Slide 1: Focus on Profitable Growth – Presentation on the first half of 2019
Presentation on the first half of 2019 FOCUS ON PROFITABLE GROWTH. Vienna, 30 July 2019
Slide 2: Andreas Klauser, CEO
ANDREAS KLAUSER CEO 2
Slide 3: HY1 2019: Revenue and earnings further increased
HY1 2019 Revenue and earnings further increased. New organizational structure successfully implemented. Initial PALFINGER 21st projects up and running. 2019 is expected to be another record year. 3
Slide 4: The PALFINGER Group is the world's leading supplier of lifting solutions
THE PALFINGER GROUP IS THE WORLD’S LEADING SUPPLIER OF LIFTING SOLUTIONS. 4
Slide 5: 2018 – An Overview
2018 – AN OVERVIEW. 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 DISTRIBUTION 18% APAC, CIS 5
Slide 6: PALFINGER Lifting Solutions – Solutions for every challenge
PALFINGER LIFTING SOLUTIONS – SOLUTIONS FOR EVERY CHALLENGE. SEA LOADER HOOKLIFTS & MARINE OFFSHORE TIMBER/ RECYCLING TAIL LIFTS CRANES SKIPLOADERS CRANES CRANES TRUCK PASSENGER ACCESS MOUNTED RAILWAY WIND DAVITS SYSTEMS PLATFORMS SYSTEMS CRANES FORKLIFTS BRIDGE INSPECTION TURNKEY WINCHES BOATS LAND
Slide 7: From product provider into 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 8: 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 APAC Production: 2 | R&D: 2 Production: 1 | R&D: 1 Production R&D SEA Production: 6 | R&D: 7 8
Slide 9: PALFINGER's performance in the first half of 2019 was impressive at all levels
PALFINGER’S PERFORMANCE IN THE FIRST HALF OF 2019 WAS IMPRESSIVE AT ALL LEVELS. FINANCES ORGANIZATION FUTURE TOPICS +11.4% in revenue leads to GPO PALFINGER 21st produces specific initiatives, projects record figure of EUR 893.4 million successfully implemented and success Restructuring in 9.3% EBIT
Slide 10: Operational Highlights
OPERATIONAL HIGHLIGHTS. 1 Further revenue increase in all regions 2 Good order intake and high capacity utilization at production plants 3 Limited internal and external capacities 4 Partnership with SANY still highly successful 5 Marine business: onset of market recovery and strong order intake 10
Slide 11: Significant progress of growth initiatives
SIGNIFICANT PROGRESS OF GROWTH INITIATIVES. 6 PALFINGER 21st produces first results 7 GLOBAL PALFINGER ORGANIZATION already successful 8 Implementation of globally uniform ERP system 11
Slide 12: Felix Strohbichler, CFO
FELIX STROHBICHLER CFO 12
Slide 13: Segment Sales & Service Land
SEGMENT SALES & SERVICE LAND 13
Slide 14: Strong increase in revenue – Sales & Service Land
STRONG INCREASE IN REVENUE. SALES & SERVICE LAND EUR million HY1 20181) HY1 2019 Δ% External revenue 635.4 733.6 +15.5% EBITDA 87.6 93.0 +6.1% EBIT 79.0 82.6 +4.5% EBIT margin 12.4% 11.3% – 1) Previous year‘s figures adjusted to new segment reporting with retrospective effect. Acc. to IFRS, minor ro
Slide 15: Operations Land Segment
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Slide 16: High capacity utilization boosts profitability – Operations Land
HIGH CAPACITY UTILIZATION BOOSTS PROFITABILITY. OPERATIONS LAND EUR million HY1 20181) HY1 2019 Δ% External revenue 51.5 64.5 +25.1% EBITDA 26.7 38.9 +45.7% EBIT 13.2 22.9 +74.0% 1) Previous year‘s figures adjusted to new segment reporting with retrospective effect. Acc. to IFRS, minor rounding diff
Slide 17: SEA Segment
SEGMENT SEA 17
Slide 18: Significant operational improvement – Segment SEA
SIGNIFICANT OPERATIONAL IMPROVEMENT. SEGMENT SEA Good order intake in all areas and 1 start of offshore market recovery 2 Restructuring largely completed by end of half-year Follow-on and one-time effects, and change in 3 revenue recognition method affect earnings Break-even possible in HY2 2019 4 d
Slide 19: PALFINGER Neptune
PALFINGER NEPTUNE. SEGMENT SEA Sales joint venture for maritime lifesaving equipment 1 and services in China agreed 2 Consolidation of PALFINGER’s global market position Pole position in dynamic Chinese cruise 3 lifesaving equipment market 19
Slide 20: New orders not reflected in revenue before 2020
NEW ORDERS NOT REFLECTED IN REVENUE BEFORE 2020. SEGMENT SEA EUR million HY1 20181) HY1 2019 Δ% External revenue 114.9 95.3 (17.1%) EBITDA (2.1) (0.1) +93.8% EBIT (9.9) (7.9) +20.0% EBIT margin (8.6%) (8.3%) – 1) Previous year‘s figures adjusted to new segment reporting with retrospective effect. Ac
Slide 21: Unit Holding
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Slide 22: Reorganization involves higher expenditures
REORGANIZATION INVOLVES HIGHER EXPENDITURES. UNIT HOLDING EUR million HY1 20181) HY1 2019 Δ% EBITDA (9.6) (11.7) (21.0%) EBIT (11.3) (14.3) (26.9%) 1) Previous year‘s figures adjusted to new segment reporting with retrospective effect. Acc. to IFRS, minor rounding differences may occur. 22
Slide 23: PALFINGER Group
PALFINGER GROUP 23
Slide 24: Double-digit increase in revenue and earnings
DOUBLE-DIGIT INCREASE IN REVENUE AND EARNINGS. EUR million HY1 2018 HY1 2019 Δ% Revenue 801.9 893.4 +11.4% EBITDA 102.7 120.1 +17.0% EBITDA margin 12.8% 13.4% – EBIT 71.0 83.3 +17.2% EBIT margin 8.9% 9.3% – EBT 62.2 74.9 +20.5% Consolidated net result for the period 35.2 43.6 +23.7% Acc. to IFRS, mi
Slide 25: Investments lower than in previous year, but still at high level
INVESTMENTS LOWER THAN IN PREVIOUS YEAR, BUT STILL AT HIGH LEVEL. EUR million 50 46.0 45 40.21) 40 36.9 35 32.9 31.6 29.6 28.4 30 26.9 25 20.0 21.8 20 15 10 5 0 HY1 2015 HY1 2016 HY1 2017 HY1 2018 HY1 2019 Net investments 1) Including additions from leases (IFRS 16); excluding divestment of 2.5% of
Slide 26: ROCE improving towards target level
ROCE IMPROVING TOWARDS TARGET LEVEL. EUR million 1.200 1,100 1,116 20% 1,038 1.000 954 852 15% 800 9.2% 8.8% 600 10% 7.3% 7.2% 400 5% 200 1.8% 0 0% 1) 2) HY1 2015 HY1 2016 HY1 2017 HY1 2018 HY1 2019 1) Including 2017 restatement. Capital employed3) 2) Including additions from leases (IFRS 16). Retur
Slide 27: Stable balance-sheet structure with positive trend
STABLE BALANCE-SHEET STRUCTURE WITH POSITIVE TREND. EUR million 30 June 2018 30 June 20191) Financial liabilities (FL) 579.8 621.6 Ø Interest rate FL 1.75% 1.65%2) Ø Remaining time to maturity FL 3.52 years 4.49 years Cash equivalents 28.4 27.7 Net debt 520.0 570.1 Equity 531.5 589.6 1) Including EU
Slide 28: Improvement of balance-sheet figures despite IFRS 16
IMPROVEMENT OF BALANCE-SHEET FIGURES DESPITE IFRS 16. 30 June 2018 30 June 2019 Equity ratio 34.6% 35.8% Gearing 97.8% 96.7% Net debt/EBITDA 2.97 2.66 Acc. to IFRS, minor rounding differences may occur. 28
Slide 29: Sale of SANY shares leads to high free cash flows
SALE OF SANY SHARES LEADS TO HIGH FREE CASH FLOWS. EUR million HY1 2018 HY1 2019 EBTDA 93.8 111.8 +/- Non-cash result from companies at equity 0.2 (6.1) +/- Change in working capital (7.2) (28.9) +/- Cash flows from tax payments (16.0) (19.0) Cash flows from operating activities 70.8 57.8 +/- Cash f
Slide 30: Andreas Klauser, CEO
ANDREAS KLAUSER CEO 30
Slide 31: Added value due to re-positioning (GPO) – in excellent shape for the future
ADDED VALUE DUE TO RE-POSITIONING (GPO) – IN EXCELLENT SHAPE FOR THE FUTURE. 31
Slide 32: Our future is integrated, connected & customer-oriented
OUR FUTURE IS INTEGRATED, CONNECTED & CUSTOMER- ORIENTED. 32
Slide 33: Digital Bridge Inspection – STRUCINSPECT
STRUCINSPECT DIGITAL BRIDGE INSPECTION First marketable PALFINGER 21st solution. 33
Slide 34: Positive outlook for 2019 as a whole
Ongoing focus on profitable growth and integration Full order book and good order intake Revenue growth to EUR 1.7 billion expected EBIT margin of 9% targeted POSITIVE OUTLOOK FOR 2019 AS A WHOLE. 34
Slide 35: Financial targets 2022
WE ARE UNLOCKING OUR POTENTIAL FOR GROWTH AND INCREASING OUR PROFITABILITY. #1 FINANCIAL TARGETS 2022 EUR 2 billion revenue through organic growth 10% EBIT margin over the economic cycle 10% ROCE over the economic cycle MARKET LEADER IN LIFTING SOLUTIONS 35
Slide 36: Together we are shaping the future of our customers' lifting solutions
TOGETHER WE ARE SHAPING THE FUTURE OF OUR CUSTOMERS’ LIFTING SOLUTIONS. PALFINGER.AG 36
Slide 37: 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