Slide 1: Presentation on the third quarter of 2014
PALFINGER AG Presentation on the third quarter of 2014 November 2014
Slide 2: 5 Continents – 7 Oceans
5 CONTINENTS – 7 OCEANS EMEA Loader cranes NORTH AMERICA Timber and recycling cranes Loader cranes CIS Tail lifts Timber and recycling cranes Loader cranes Access platforms Tail lifts Timber and recycling cranes Hooklifts Access platforms Hooklifts Truck mounted forklifts Hooklifts Railway systems R
Slide 3: Ongoing market volatility
ONGOING MARKET VOLATILITY REVENUE, GROWTH AND VOLATILITY (HALF YEAR) AREA UNITS from 2006 to 2014: + 385% EUROPEAN UNITS from 2006 to 2014: + 62% 550 163.1m 500 450 400 350 377.0m 33.6m 300 250 232.5m 200 150 100 + 61% – 51% + 106% 50 0 -50 2006 2007 2008 2009 2010 2011 2012 2013 2014 Internationali
Slide 4: PALFINGER at a glance
PALFINGER AT A GLANCE ! Leading international manufacturer of innovative lifting solutions » World market leader in loader cranes, marine cranes, wind cranes and hooklifts » Leading specialist in timber and recycling cranes, tail lifts, truck mounted forklifts and high-tech railway systems ! Global
Slide 5: Highlights Q1–Q3 (1)
HIGHLIGHTS Q1–Q3 (1) ! Performance satisfactory in light of economic situation » Internationalization proved its worth » Growth boost in Marine business area » Leading market position expanded further ! Increase in revenue of 11% to EUR 795.1 million ! EBIT declined by 0.6% to EUR 55.6 million » Inc
Slide 6: Highlights Q1–Q3 (2)
HIGHLIGHTS Q1–Q3 (2) ! Joint venture in China » Sales development highly satisfactory » Construction of new production plant near Shanghai about to be completed » Start of operations in Q4 2014 » Cross shareholding with SANY completed ! Expansion in Russia » Acquisition of PM-Group concluded » 2 joi
Slide 7: Strategy
STRATEGY 7
Slide 8: Internationalization (1)
INTERNATIONALIZATION (1) STRATEGIC TARGET 2017 REVENUE Q1–Q3 2014 approx. EUR 1.8 billion EUR 795.1 million ASIA AND PACIFIC ASIA AND PACIFIC CIS CIS EMEA 14.8% ⅓ ⅓ AMERICAS 25.1% 60.1% ⅓ AMERICAS EMEA 8
Slide 9: Internationalization (2)
INTERNATIONALIZATION (2) REVENUE 2009 REVENUE Q1–Q3 2014 3.2% 2.1% 4.8% 3.9% REST OF EUROPE AFRICA AND REST OF EUROPE AFRICA AND CIS 0.4% MIDDLE EAST MIDDLE EAST FAR EAST 3.5% CIS 4.4% 7.0% 10.4% CENTRAL AND FAR EAST SOUTH AMERICA 12.3% 5.9% NORTH AMERICA CENTRAL AND SOUTH AMERICA 19.3% 51.3% 71.7%
Slide 10: Strategic objectives 2017
STRATEGIC OBJECTIVES 2017 ! Growth, primarily in BRIC countries ! Completion of product portfolio in all regions ! Development of China into second domestic market ! Global balance of production and proximity to customers ! Consolidation of leading position in the marine and offshore areas ! Maintai
Slide 11: Segments
SEGMENTS 11
Slide 12: Segment financials
SEGMENT FINANCIALS SEGMENT REVENUE Q1–Q3 2013 Q1–Q3 2014 % EUROPEAN UNITS 479.2 545.8 + 13.9% AREA UNITS 236.9 249.3 + 5.2% VENTURES – – – SEGMENT EBIT Q1–Q3 2013 Q1–Q3 2014 % EUROPEAN UNITS 62.3 62.2 (0.2%) AREA UNITS 7.3 6.4 (12.3%) VENTURES (13.2) (12.4) (6.1%) Acc. to IFRS in EUR million. Minor
Slide 13: European Units segment
EUROPEAN UNITS SEGMENT ! Still a mixed picture in Europe, weak demand in Q3, increase in revenue of 13.9% » Business units Loader Cranes, EPSILON, Truck Mounted Forklifts and Production posted increases » Other business units stagnated or recorded declines in revenue » Germany, Austria, Switzerland
Slide 14: Area Units segment
AREA UNITS SEGMENT ! Revenue increased by 5.2% » North America marked by harsh winter, Q2 and Q3 extremely successful again » South America suffered losses caused by exchange rate developments and reduction in public funding » Asia reported substantial increases, sales in China above budget » New pr
Slide 15: Ventures unit
VENTURES UNIT ! Focus on integration of companies acquired in 2013 » Cross shareholding with SANY » Interest in HIDRO-GRUBERT » Preparation of integration of PM-Group » Introduction of access platforms in China » Consolidation of Marine and Systems/Megarme » Preparation of further acquisitions for t
Slide 16: Key financials
KEY FINANCIALS 16
Slide 17: Key figures
KEY FIGURES Q1–Q3 2012 Q1–Q3 2013 Q1–Q3 2014 % Revenue 688.2 716.1 795.1 + 11.0% EBITDA 74.4 79.3 81.7 + 3.0% EBITDA margin 10.8% 11.1% 10.3 – EBIT 52.0 56.0 55.6 (0.7%) EBIT margin 7.5% 7.8% 7.0% – Result before income tax 43.9 46.3 47.9 + 3.5% Consolidated net result for the period 31.7 34.3 32.4
Slide 18: Quarterly figures
QUARTERLY FIGURES Revenue EBIT 300 273 50 265 268 247 249 255 241 241 250 222 224 223 226 40 210 200 30 150 20 100 19.5 21.1 20.1 20.9 16.5 17.7 16.5 18.1 16.9 18.1 15.5 14.8 14.6 10 50 0 0 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 EBIT 7.8% 7.0% 7.9% 8.1% 6.6% 6.
Slide 19: Capital employed
CAPITAL EMPLOYED* Net working capital (in relation to revenue) Non-current operating assets 800 729 604 600 542 215 (20%) 456 496 182 (19%) 118 (15%) 149 (16%) 400 133 (16%) 514 200 378 392 422 323 0 Q1–Q3 2010 Q1–Q3 2011 Q1–Q3 2012 Q1–Q3 2013 Q1–Q3 2014 Increase through expansion of business volume
Slide 20: Investments
INVESTMENTS Net investments Depreciation, amortization and impairment 59.1* 60 50 40 34.6 28.1 26.0 30 22.5 23.3 21.1 20 16.7 17.1 9.2 10 0 Q1–Q3 2010 Q1–Q3 2011 Q1–Q3 2012 Q1–Q3 2013 Q1–Q3 2014 * Adjusted by acquisition of interest in SANY, total: EUR169,089 thousand Acc. to IFRS in EUR million. Mi
Slide 21: Gearing ratio and equity
GEARING RATIO AND EQUITY Net debt Equity Gearing % 500 478.0 100 % 381.2 373.0 400 367.1 78.0% 339.5 75 % 315.8 300 243.2 63.8% 50 % 48.2% 187.9 51.2% 200 15.4 169.8 50.0% 25 % 100 0 0% Q1–Q3 2010 Q1–Q3 2011 Q1–Q3 2012 Q1–Q3 2013 Q1–Q3 2014 è Equity increased by EUR 96.8 million Acc. to IFRS in EUR
Slide 22: Free cash flows
FREE CASH FLOWS Q1–Q3 2012 Q1–Q3 2013 Q1–Q3 2014 EBTDA 66.4 69.6 73.6 +/– Non-cash result from companies at equity (2.2) (6.8) (1.0) +/– Change in working capital (23.7) (28.7) (64.8) +/– Cash flows from tax payments (9.5) (5.0) (4.7) Cash flows from operating activities 31.0 29.1 3.1 +/– Cash flows
Slide 23: Outlook
OUTLOOK 23
Slide 24: Outlook and objectives – internally
OUTLOOK AND OBJECTIVES – INTERNALLY ! Internationalization strategy to be continued » Completion of product portfolio in all markets » Focus on China and Russia ! Joint management of Marine business area to ensure high pace of growth ! Further increase in flexibility (lean administration) » Fixed-co
Slide 25: Outlook and objectives – externally
OUTLOOK AND OBJECTIVES – EXTERNALLY ! Weak demand in Europe and South America ! Growth expected in other regions, but political tensions influence customers’ investment behaviour Once again, record revenue is expected, è but decline in earnings is likely 25
Slide 26: 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 www.palfinger.ag This presentation contains forward-looking stateme
Slide 27: Back up
BACK UP 27
Slide 28: Balance sheet structure
BALANCE SHEET STRUCTURE ASSETS LIABILITIES Current liabilities Non-current assets Non-current liabilities Current assets Equity 1200 1,128 1200 1,128 1000 860 1000 860 337 800 524 800 225 600 429 600 312 253 400 400 604 478 200 431 200 381 0 0 Q3 2013 Q3 2014 Q3 2013 Q3 2014 Long-term financial stru
Slide 29: Financing structure as at Sept 2014
FINANCING STRUCTURE AS AT 30 SEPT 2014 250 233 Ø Interest rate 2.29% 200 Ø Remaining time to 2.5 years maturity 150 107 Financial assets EUR 22.0m 100 52 Equity ratio 42.4% 50 0 Maturity 2014 2015 nach 2015 Acc. to IFRS in EUR million. Minor rounding differences may occur. 29
Slide 30: PALFINGER shares
PALFINGER SHARES SHAREHOLDER STRUCTURE SHAREHOLDER INFORMATION AS AT 30 SEPT 2014 10% 1% ISIN AT0000758305 SANY Group PALFINGER AG Number of shares 37,593,258 thereof own shares 291,968 Share price EUR 25.00 as at end of period 30% free float Market capitalization EUR 939.8m Earnings per share EUR 0
Slide 31: Performance of PALFINGER shares since 2013
PERFORMANCE OF PALFINGER SHARES SINCE 2013 200 180 160 140 120 DAX PALFINGER AG 100 18.60 EUR ATX 80 2 Jan 2013 2 Jan 2014 31 Oct 2014 31
Slide 32: Research reports
RESEARCH REPORTS Berenberg Bank HSBC Deutsche Bank Kepler Cheuvreux Erste Group RCB Goldman Sachs UBS Hauck & Aufhäuser Earnings Estimates – Consensus (in Mio EUR) 2014e 2015e Umsatz 1,025.3 1,082.5 EBIT 67.2 84.3 Ergebnis je Aktie (in EUR) 1.03 1.34 32
Slide 33: Financial calendar 2015
FINANCIAL CALENDAR 2015 6 February 2015 Balance sheet press conference 11 March 2015 Annual General Meeting 13 March 2015 Ex-dividend day 17 March 2015 Dividend payment day Publication of the results 30 April 2015 for the first quarter of 2015 Publication of the results 30 July 2015 for the first ha