Palfinger Ag · VIE:PAL
Palfinger — H1 2015 Earnings Presentation
31 slides from Palfinger's earnings presentation, Jul 30, 2015
Slide 1: Presentation on the first half of 2015
PALFINGER AG Presentation on the first half of 2015 Vienna, 30 July 2015
Slide 2: Ongoing market volatility
ONGOING MARKET VOLATILITY REVENUE, GROWTH AND VOLATILITY (QUARTERS) AREA UNITS from 2008 to 2015: + 345% EUROPEAN UNITS from 2008 to 2014: + 14.5% 400 300 100.2m 22.5m 213.6m 200 186.5m 100 (45%) + 167% 0 2008 2009 2010 2011 2012 2013 2014 2015 Internationalization as basis for revenue growth Flex
Slide 3: Highlights HY1 2015
HIGHLIGHTS HY1 2015 HY1 2015 marked by steep growth and strong earnings » Growth achieved in Europe, North America, CIS and China » Demand for loader cranes strong in Europe » Revenue in North America increased by 40% » Local value creation in Russia proved its worth in light of sanctions » Joint ve
Slide 4: Strategic highlights HY1 2015
STRATEGIC HIGHLIGHTS HY1 2015 Establishment of local value creation in Russia » Integration of PM-Group Lifting Machines » Start of production at the new INMAN plant » Start of operations of the joint ventures with KAMAZ » Lack of exports to CIS due to sanctions more than compensated Joint venture w
Slide 5: Strategic objectives 2017
STRATEGIC OBJECTIVES 2017 Growth, primarily in North America, China and the marine business Completion of product portfolio in all regions Development of China into second domestic market Global balance of production and proximity to customers Expansion of market position in the marine and offshore
Slide 6: Strategy
STRATEGY 6
Slide 7: 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 sale
Slide 8: 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 Tail lifts Truck mounted forklifts Hooklifts Access platforms
Slide 9: Internationalization (1)
INTERNATIONALIZATION (1) STRATEGIC TARGET 2017 REVENUE HY1 2015 approx. EUR 1.8bn* EUR 606.2m ASIA AND PACIFIC ASIA AND PACIFIC CIS CIS EMEA 15.36% ⅓ ⅓ AMERICAS 26.49% 58.15% ⅓ AMERICAS EMEA * Including JVs in China and Russia 9
Slide 10: Internationalization (2)
INTERNATIONALIZATION (2) REVENUE 2009 REVENUE HY1 2015 3.2% 2.1% 5.7% 4.7% REST OF EUROPE AFRICA AND REST OF AFRICA AND CIS 0.4% MIDDLE EAST EUROPE MIDDLE EAST FAR EAST 3.5% CIS 5.4% 7.0% 9.9% CENTRAL AND FAR EAST SOUTH AMERICA 12.3% 3.6% NORTH AMERICA CENTRAL AND SOUTH AMERICA 22.9% 47.9% 71.7% NOR
Slide 11: Segments
SEGMENTS 11
Slide 12: Segment financials
SEGMENT FINANCIALS SEGMENT REVENUE HY1 2014* HY1 2015 % EUROPEAN UNITS 377.6 414.3 + 9.7% AREA UNITS 153.6 191.9 + 24.9% VENTURES – – – SEGMENT EBIT HY1 2014* HY1 2015 % EUROPEAN UNITS 46.8 53.1 + 13.5% AREA UNITS 3.2 7.9 + 146.4% VENTURES (8.4) (7.4) + 11.9% * The figures for the first half of 2014
Slide 13: European Units segment
EUROPEAN UNITS SEGMENT Visibility remains low in Europe, but nevertheless increase of 9.7% achieved » Business units Loader Cranes, EPSILON, Hookflifts and Truck Mounted Forklifts posted increases in sales » Satisfactory capacity utilization of production units » Growth recorded in Denmark, Sweden,
Slide 14: Area Units segment
AREA UNITS SEGMENT Revenue increased by 24.9% to EUR 191.9 million » North America posted strong growth » Local value creation in Russia fully utilized » Asia recorded considerable increases, good capacity utilization of the new plant in Rudong » South America suffered losses due to exchange rate de
Slide 15: Ventures unit
VENTURES UNIT Focus on integration of the acquired companies » Establishment of operations of the two joint ventures with KAMAZ » Acquisition of Norwegian Deck Machinery AS completed » Forward integration through joint venture with Fairwind LLC Continuation of cost-related and structural programmes
Slide 16: Key financials
KEY FINANCIALS 16
Slide 17: Key financials
KEY FINANCIALS HY1 2013 HY1 2014* HY1 2015 % Revenue 475.1 531.2 606.2 + 14.1% EBITDA 54.0 58.5 73.5 + 25.6% EBITDA margin 11.4% 11.0% 12.1% – EBIT 39.1 41.4 53.7 + 29.7% EBIT margin 8.2% 7.8% 8.9% – Result before income tax 32.2 35.9 48.9 + 36.2% Consolidated net result for the 24.7 24.6 34.6 + 40.
Slide 18: Quarterly figures
QUARTERLY FIGURES Revenue EBIT 350 50 314 281 292 300 267 265 264 40 241 247 249 241 251 250 223 226 200 30 30.1 150 20 23.6 19.5 21.1 20.4 21.0 100 18.1 16.9 18.1 14.8 16.5 14.6 10 50 10.5 0 0 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 EBIT 8.1% 6.6% 6.7% 8.0% 8.5
Slide 19: Capital employed
CAPITAL EMPLOYED* Net working capital (as percentage of revenue) Non-current operating assets 1000 859 800 699 194 (17%) 600 600 542 194 (17%) 488 176 (19%) 114 (15%) 157 (18%) 400 665 200 424 505 373 385 0 HY1 2011 HY1 2012 HY1 2013 HY1 2014 HY1 2015 Increase through acquisitions * Average. Acc.
Slide 20: Investments
INVESTMENTS Net investments Depreciation, amortization and impairment 40 35.6* 35 30 26.9 25 20.2 19.7 20 16.7 14.9 17.1 14.1 15.0 15 10.1 10 5 0 HY1 2011 HY1 2012 HY1 2013 HY1 2014 HY1 2015 * Adjusted by acquisition of interest in SANY, total: EUR 109,978 thousand Acc. to IFRS in EUR million. Minor
Slide 21: Gearing ratio and equity
GEARING RATIO AND EQUITY Net debt Equity Gearing % 600 100 % 518.8 500 78.8% 448.8 73.4% 80 % 400 360.7 63.8% 375.6 380.7 327.9 53.9% 353.8 60 % 300 49.8% 239.7 194.5 40 % 200 163.4 100 20 % 0 0% HY1 2011 HY1 2012 HY1 2013 HY1 2014 HY1 2015 Equity ratio at a high level Acc. to IFRS in EUR million.
Slide 22: Outlook
OUTLOOK 22
Slide 23: Outlook and objectives – internally
OUTLOOK AND OBJECTIVES – INTERNALLY Internationalization strategy to be continued » Completion of product portfolio in all regions in the medium term » Focus on sustainable market development in China and Russia Continue pushing growth in marine business Further increase in flexibility (lean adminis
Slide 24: Outlook and objectives – externally
OUTLOOK AND OBJECTIVES – EXTERNALLY Heterogeneous situation in Europe, no pronounced growth dynamics Growth achieved in non-European regions, particularly in North America and Asia. Satisfactory demand in CIS in spite of difficult conditions. South America affected by shrinking market. Political ten
Slide 25: Investor relations
INVESTOR RELATIONS Herbert Ortner, CEO Hannes Roither, Company Spokesperson Phone +43 662 228 81-001 Phone +43 662 228 81-101 h.ortner@palfinger.com h.roither@palfinger.com PALFINGER AG Lamprechtshausener Bundesstraße 8 5101 Bergheim www.palfinger.ag This presentation contains forward-looking statem
Slide 26: Back up
BACK UP 26
Slide 27: Balance sheet structure
BALANCE SHEET STRUCTURE ASSETS LIABILITIES Equity Non-current assets Non-current liabilities Current assets Current liabilities 1500 1500 1,232 1,232 1,065 1,065 1000 1000 279 511 308 468 434 500 308 500 597 721 519 449 0 0 HY1 2014 HY1 2015 HY1 2014 HY1 2015 Acc. to IFRS in EUR million. Minor round
Slide 28: Financing structure as at June 2015
FINANCING STRUCTURE AS AT 30 JUNE 2015 400 319 Ø Interest rate 2.02% Ø Remaining time to maturity 2.4 years Financial assets EUR 21.1m 200 Equity ratio 42.1% 65 42 0 Maturity 2015 2016 after 2016 Acc. to IFRS in EUR million. Minor rounding differences may occur. 28
Slide 29: Palfinger shares
PALFINGER SHARES SHAREHOLDER STRUCTURE SHAREHOLDER INFORMATION AS AT 30 JUNE 2015 10% 1% ISIN AT0000758305 SANY Group PALFINGER AG Number of shares 37,593,258 thereof own shares 283,562 Share price as at end EUR 27.40 of period 30% free float Market capitalization EUR 1,030.1m Earnings per share EUR
Slide 30: Performance of Palfinger shares since 2014
PERFORMANCE OF PALFINGER SHARES SINCE 2014 140 DAX 120 100 ATX PALFINGER AG EUR 26.64 80 60 40 2 Jan 2014 2 Jan 2015 17 July 2015 30
Slide 31: Research reports
RESEARCH REPORTS Berenberg Bank HSBC Deutsche Bank Kepler Cheuvreux Erste Group RCB Goldman Sachs UBS Hauck & Aufhäuser Earnings Estimates – consensus (EUR million) 2015e 2016e Revenue 1,169.8 1,230.1 EBIT 86.5 97.8 Earnings per share (EUR) 1.45 1.70 31