Slide 1: Significant growth at record level
PALFINGER AG Significant growth at record level Substantial increase in earnings Presentation on the results for the third quarter of 2017 Bergheim, 27 October 2017
Slide 2: Growth despite market volatility
GROWTH DESPITE MARKET VOLATILITY REVENUE, GROWTH AND VOLATILITY (QUARTERS) LAND segment from 2009 to 2017: +142% SEA segment from 2011 to 2017: +1,101% Quarterly result 400 Total revenue EUR +168.5% 2009–2016 284.2m 300 CAGR: 15.2% 200 EUR 117.5m EUR 55.1m Q1 2011 EUR 4.6m 2010 2011 2012 2013 2014 2
Slide 3: Highlights Q1–Q3 2017
HIGHLIGHTS Q1–Q3 2017 Significant expansion of business with substantial increase in earnings » Excellent performance in Europe, Russia and China » Downturn seems to have bottomed out in South America; environment remains difficult » Acquisitions support growth strategy » Marine business remains at
Slide 4: Strategic highlights Q1–Q3 2017
STRATEGIC HIGHLIGHTS Q1–Q3 2017 Sky Steel Systems LLC » 20% investment in Sky Steel Systems, Dubai, producer of building maintenance tools and facade access equipment Palfinger Danmark AS » Takeover of sales organization from former owner, who will focus on the company’s core business Restructuring
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 Group: approx. EUR 1.4bn, approx. 9,970 employees (2016) » 38 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 loader crane
Slide 8: Internationalization: strategic target revenue Q1–Q3 2017
INTERNATIONALIZATION STRATEGIC TARGET REVENUE Q1–Q3 20171) ASIA AND PACIFIC ASIA AND PACIFIC CIS CIS EMEA 19.2% ⅓ ⅓ AMERICAS 21.7% 59.1% ⅓ AMERICAS EMEA 1) Including joint ventures (100%) Acc. to IFRS in EUR million. Minor rounding differences may occur. 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, Loader cranes lifting and handling systems 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 5.5% to EUR 908.8 million » Significant expansion of business in EMEA, CIS and China » Positive effects of Palfinger Danmark » Economic recovery in Europe becoming a steady factor » Restructuring in
Slide 13: Financials LAND segment
FINANCIALS LAND SEGMENT Q1–Q3 2016 Q1–Q3 2017 % Revenue 861.2 908.8 +5.5% EBITDAn1) 135.0 153.8 +13.9% EBITDAn margin1) 15.7% 16.9% – EBITn1) 107.3 123.5 +15.0% EBITn margin1) 12.5% 13.6% – Restructuring costs 5.7 8.9 +56.1% è Substantial growth of operating result 1) Starting in 2015, these figures
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 maritime sector Marine Cranes Offshore Cranes Davits Boats Winches Wind Cranes Rope Access After Sales and Service 15
Slide 16: Global footprint – also in service
GLOBAL FOOTPRINT – ALSO IN SERVICE 11 production sites 16 service centres (approx. 300 PALFINGER service staff) 16
Slide 17: Highlights SEA segment
HIGHLIGHTS SEA SEGMENT Revenue increased by 36.1% to EUR 184.3 million » Harding contributed EUR 77.3 million to revenue » Share of segment revenue in consolidated revenue rose to 16.9% » Strained situation in the oil and gas industry continues » Market stabilization at a low level » Consolidation o
Slide 18: Financials SEA segment
FINANCIALS SEA SEGMENT Q1–Q3 2016 Q1–Q3 2017 % Revenue 135.4 184.3 +36.1% EBITDAn1) 7.6 5.8 (23.9%) EBITDAn margin1) 5.6% 3.1% – EBITn1) 3.2 (3.8) – EBITn margin1) 2.4% (2.0%) – Restructuring costs 3.1 4.1 +32.3% è First signs of revival of investment activity 1) Starting in 2015, these figures were
Slide 19: Key financials
KEY FINANCIALS 19
Slide 20: Key financials
KEY FINANCIALS Q1–Q3 2015 Q1–Q3 2016 Q1–Q3 2017 % Revenue 898.9 996.6 1,093.1 +9.7% EBITDAn1) 114.3 131.1 147.6 +12.6% EBITDAn margin1) 12.7% 13.2% 13.5% – EBITn1) 84.0 96.9 105.3 +8.7% EBITn margin1) 9.3% 9.7% 9.6% – Result before income tax 68.7 76.9 79.6 +3.5% Consolidated net result for the peri
Slide 21: Current capital
CURRENT CAPITAL 1) Current capital CC ratio 600 40% 500 29.5% 28.6% 27.0% 27.0% 27.0% 30% 400 308 319 393 300 275 358 20% 200 10% 100 0 0% Q1–Q3 2013 Q1–Q3 2014 Q1–Q3 2015 Q1–Q3 2016 Q1–Q3 2017 è Continuous improvement targeted 1) Current capital (average) in proportion to revenue of the previous 12
Slide 22: Investments
INVESTMENTS Net investments Depreciation, amortization and impairment 60 52.2 48.5 50 44.1 42.3 40 34.3 35.0 30.3 30 23.6 26.3 1) 20 16.9 10 0 Q1–Q3 2013 Q1–Q3 2014 Q1–Q3 2015 Q1–Q3 2016 Q1–Q3 2017 è Enlargement of production capacities and replacement investments 1) Adjusted by acquisition of inter
Slide 23: Gearing ratio and equity
GEARING RATIO AND EQUITY Net debt Equity Gearing % 700 95.8% 90.8% 100% 83.5% 579.3 600 76.3% 529.0 551.9 525.9 80% 500 65.4% 458.1 400 375.0 382.6 383.4 502.6 60% 300 245.4 40% 200 20% 100 0 0% Q1–Q3 2013 Q1–Q3 2014 Q1–Q3 2015 Q1–Q3 2016 Q1–Q3 2017 è Solid development of equity; start of reduction
Slide 24: Free cash flows
FREE CASH FLOWS Q1–Q3 2015 Q1–Q3 2016 Q1–Q3 2017 EBTDA 99.0 112.0 121.9 +/– Non-cash result from (3.7) (3.4) (4.4) companies at equity +/– Change in working capital (35.8) (13.2) (41.4) +/– Cash flows from tax payments (5.8) (23.9) (14.7) Cash flows from operating activities 53.7 71.5 61.4 +/– Cash
Slide 25: Outlook
OUTLOOK 25
Slide 26: Outlook and objectives
OUTLOOK AND OBJECTIVES Continuing high level of incoming orders gives reason to expect further positive business development Restructuring measures in North America and in the marine business impact negatively on earnings Integration of the Harding Group proves challenging Group-wide initiatives wit
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: Backup
BACKUP 28
Slide 29: Return on capital employed
RETURN ON CAPITAL EMPLOYED NOPLAT (rolling, past 12 months) Non-curent assets and liabilities Net working capital Return on capital employed % 1200 1,099 40% 1100 1000 970 900 849 30% 800 720 791 700 600 683 600 20% 578 449 500 358 400 300 9.1% 7.9% 8.2% 8.5% 7.7% 10% 200 308 287 85 271 271 69 83 24
Slide 30: Balance sheet structure
BALANCE SHEET STRUCTURE ASSETS LIABILITIES Equity Non-current assets Current assets Non-current liabilities Current liabilities 2000 2000 1,514 1,570 1,514 1,570 1500 1500 440 381 616 668 1000 1000 522 609 500 897 902 500 552 579 0 0 Q1–Q3 2016 Q1–Q3 2017 Q1–Q3 2016 Q1–Q3 2017 Acc. to IFRS in EUR mi
Slide 31: Financing structure as at 30 Sept 2017
FINANCING STRUCTURE AS AT 30 SEPT 2017 400 Financial liabilities (FL) EUR 607.5m 327 Ø Interest rate FL 1.81% 300 250 Ø Remaining time to maturity FL 3.88 years Cash equivalents EUR 40.8m 200 Net debt EUR 525.9m Equity ratio 36.9% 100 Gearing 90.8% 31 Net debt/EBITDA 3.12 0 Maturity 0–1 years 1–5 ye
Slide 32: PALFINGER shares: shareholder structure
PALFINGER SHARES SHAREHOLDER STRUCTURE SHAREHOLDER INFORMATION AS AT 30 SEPT 2017 7.5% ISIN AT0000758305 SANY Group Number of shares 37,593,258 Share price EUR 38.44 as at end of period 33.5% Market capitalization EUR 1.4bn free float Earnings per share EUR 1.34 59% Palfinger family 32
Slide 33: Performance of PALFINGER shares since 2016
PERFORMANCE OF PALFINGER SHARES SINCE 2016 PALFINGER AG EUR 38.89 ATX DAX 4 Jan 2016 2 Jan 2017 20 Oct 2017 33
Slide 34: Research reports
RESEARCH REPORTS Deutsche Bank HSBC Erste Group Kepler Cheuvreux Hauck & Aufhäuser RCB Berenberg Bank UBS Earnings estimates – consensus (EUR million) 2017e 2018e Revenue 1,471.0 1,540.2 EBITn 147.3 165.6 Earnings per share (in EUR) 2.16 2.73 34