Palfinger Ag · VIE:PAL
Palfinger — Q1-Q3 2020 Earnings Presentation
30 slides from Palfinger's earnings presentation, Oct 30, 2020
Slide 1: Publication of Results Q1-Q3/2020
PUBLICATION OF RESULTS Q1-Q3 / 2020 Bergheim, October 30, 2020
Slide 2: Andreas Klauser, CEO
ANDREAS KLAUSER 2 CEO 20-10-30 PALFINGER Publication of Results Q1-Q3/2020
Slide 3: Q3/2020 at a glance
Q3/2020 at a glance MARKET FURTHER STABILIZED SINCE SUMMER: STILL HIGH VOLATILITY Q3 EBIT MARGIN OF 8.5 % 2020 Q1 - Q3 3 COVID-19 HAS HUGE IMPACT 1ST PHASE OF CRISIS: HANDLED WELL THANKS TO FULL ORDER BOOKS OPTIMISTIC OUTLOOK BEYOND 2021 20-10-30 PALFINGER Publication of Results Q1-Q3/2020
Slide 4: PALFINGER at a glance
PALFINGER at a glance PALFINGER: GLOBALLY WELL POSITIONED GROUP 2019 REVENUE EUR 1.75 billion 4 EMPLOYEES 11,126 33 production sites & SITES around 5,000 service centers worldwide 61% EMEA REVENUE 23% NAM SPLIT 5% LATAM 12% APAC, CIS 20-10-30 PALFINGER Publication of Results Q1-Q3/2020
Slide 5: Crisis-resistant thanks to sector diversity
Knowing our customers shapes our actions CRISIS-RESISTANT THANKS TO SECTOR DIVERSITY Construction Industry Railway Offshore Wind Aquaculture & Fishing Forestry & Agriculture Transport & Logistics Waste Mgmt. & Recycling Passenger Commercial 5 Infrastructure Public Sector Offshore Supply & Oil and Ga
Slide 6: Innovative and powerful product portfolio
Technology as a driving force INNOVATIVE AND POWERFUL PRODUCT PORTFOLIO TIMBER & LOADER HOOKLIFTS AND TAIL TURNKEY MARINE OFFSHORE WINCHES RECYCLING CRANES SKIP LOADERS LIFTS SOLUTIONS CRANES CRANES CRANES 6 BRIDGE RAILWAY WIND PASSENGER ACCESS TRUCK MOUNTED DAVITS BOATS INSPECTION SYSTEMS CRANES SY
Slide 7: With our corporate incubator, we are shaping the future
We are investing in our future, especially during the crisis P21st CHALLENGE ACCEPTED: WITH OUR CORPORATE INCUBATOR, WE ARE SHAPING THE FUTURE. P21st STRUCINSPECT 7 NATIONAL PRIZE FOR DIGITALIZATION 2020 DIGITAL IMPULS AWARD 2020 20-10-30 PALFINGER Publication of Results Q1-Q3/2020
Slide 8: Long-term competitiveness through sustainable actions
Corporate responsibility LONG-TERM COMPETITIVENESS THROUGH SUSTAINABLE ACTIONS ▪ Materiality analysis is being finalized, KPIs and measures in preparation ▪ New climate strategy in preparation Responsible Employer Eco-Efficient Production ▪ Focus on HSE ▪ 42% CO2 reduction compared ▪ Start of the PA
Slide 9: COVID-19 Task Force reacted quickly & extensively
Operational highlights COVID-19 TASK FORCE REACTED QUICKLY & EXTENSIVELY FOCUS, COOPERATION AND PROACTIVE MANAGEMENT AS SUCCESSFUL CORE ELEMENTS COVID Task Force implemented at end of February 2020: completed 220 actions in 3 work packages: 01 1. Health & Safety / HR / Communication, 2. Production &
Slide 10: Operational highlights Q1-Q3/2020
General conditions for PALFINGER OPERATIONAL HIGHLIGHTS Q1-Q3/2020 COVID-19 has a huge impact. Visible recovery during summer period in EUROPE, CIS, CHINA and LATAM, but still high volatility. 10 Order book similar to end of 2019 level. Restructuring of SEA segment completed, full integration into G
Slide 11: Felix Strohbichler, CFO
FELIX STROHBICHLER 11 CFO 20-10-30 PALFINGER Publication of Results Q1-Q3/2020
Slide 12: Segment Sales & Service
SEGMENT 12 SALES & SERVICE 20-10-30 PALFINGER Publication of Results Q1-Q3/2020
Slide 13: Positive trend in Q3
Sales & Service Segment POSITIVE TREND IN Q3 01 Effects of COVID-19 crisis felt across all product lines. 02 Drop in earnings reduced by short-time work and cost-cutting measures. 13 03 Sales and service activities of the former SEA segment included. 04 Market recovery (EUROPE, CIS, CHINA, LATAM) vi
Slide 14: EBIT margin reduced due to lower revenue
Sales & Service Segment EBIT MARGIN REDUCED DUE TO LOWER REVENUE EUR million Q1-Q3/20191) Q1-Q3/2020 Δ% External revenue 1,211.1 1,033.8 -14.6% EBITDA 134.6 118.9 -11.7% 14 EBIT 110.9 80.0 -27.9% EBIT margin 9.2% 7.7% - 1) Figures adjusted retroactively to the new segment reporting structure. 20-10-
Slide 15: Segment Operations
SEGMENT 15 OPERATIONS 20-10-30 PALFINGER Publication of Results Q1-Q3/2020
Slide 16: Q1-Q3/2020 heavily impacted by COVID-19
OPERATIONS Segment Q1-Q3/2020 HEAVILY IMPACTED BY COVID-19 Lower capacity utilization in Q2 due to lockdowns, market environment and COVID crisis 01 health-measure compliance. Lockdown used to create work environments best suited to safeguarding health, 02 safety and well-being. 16 COVID-19 Task For
Slide 17: Lower capacity utilization and less manufacturing for third parties
OPERATIONS Segment LOWER CAPACITY UTILIZATION AND LESS MANUFACTURING FOR THIRD PARTIES EUR million Q1-Q3/20191) Q1-Q3/2020 Δ% External revenue 89.6 68.7 -23.3% 17 EBITDA 56.5 34.8 -38.4% EBIT 28.5 8.9 -68.8% 1) Figures adjusted retroactively to the new segment reporting structure. 20-10-30 PALFINGER
Slide 18: Holding Unit
HOLDING 18 UNIT 20-10-30 PALFINGER Publication of Results Q1-Q3/2020
Slide 19: Short-time work and project prioritisation reduce holding costs
HOLDING Unit SHORT-TIME WORK AND PROJECT PRIORITISATION REDUCE HOLDING COSTS EUR million Q1-Q3/2019 Q1-Q3/2020 Δ% EBITDA -16.0 -13.4 16.2% 19 EBIT -20.1 -18.3 9.2% 20-10-30 PALFINGER Publication of Results Q1-Q3/2020
Slide 20: PALFINGER Group
PALFINGER 20 GROUP 20-10-30 PALFINGER Publication of Results Q1-Q3/2020
Slide 21: Profitability in Q3 on high level: EBIT of EUR 31.8 million
PALFINGER Group PROFITABILITY IN Q3 ON HIGH LEVEL: EBIT OF EUR 31.8 MILLION EUR million Q1-Q3/2019 Q1-Q3/2020 Δ% Revenue 1,300.6 1,102.4 -15.2% EBITDA 175.1 140.3 -19.9% EBITDA margin 13.5% 12.7% - 21 EBIT (operating income) 119.3 70.6 -40.8% EBIT margin 9.2% 6.4% - EBT (result before income tax) 10
Slide 22: Lower net investment during crisis
PALFINGER Group LOWER NET INVESTMENT DURING CRISIS 50 69.0 69.7 45 66.2 1) 40 55.8 35 52.2 45.9 48.5 42.3 46.9 30 25 35.0 20 22 15 10 5 0 Q1-Q3/2016 Q1-Q3/2017 Q1-Q3/2018 Q1-Q3/2019 Q1-Q3/2020 Net investment Depreciation, amortization and impairment 1) Includes additions from leases (IFRS 16); exclu
Slide 23: Liquidity reserves substantially increased
PALFINGER Group LIQUIDITY RESERVES SUBSTANTIALLY INCREASED – LOWEST NET FINANCIAL DEBT (NFD) SINCE Q1/2016 Sept 30, Sept 30, EUR million 2019 2020 Financial liabilities 1) 633.1 546.1 Ø interest on financial liabilities 1.62% 1.38% 23 Ø maturity of financial liabilities 4.40 years 4.06 years Cash eq
Slide 24: Strengthened balance sheet despite crisis
PALFINGER Group STRENGTHENED BALANCE SHEET DESPITE CRISIS Sept 30, Sept 30, 2019 2020 Equity ratio 37.1% 39.0% 24 Gearing 93.2% 75.6% Net debt/EBITDA 2.57 2.43 In accordance with IFRS, minor rounding differences are possible. 20-10-30 PALFINGER Publication of Results Q1-Q3/2020
Slide 25: High free cash flow - optimized inventory and receivables
PALFINGER Group HIGH FREE CASH FLOW - OPTIMIZED INVENTORY AND RECEIVABLES EUR million Q1-Q3/2019 Q1-Q3/2020 EBTDA 163.0 128.2 +/- non-cash income from at-equity companies -11.9 -4.7 +/- change in working capital -37.1 16.1 +/- cash flow from tax payments -32.5 -6.8 25 Cash flow from operating activi
Slide 26: Andreas Klauser, CEO
ANDREAS KLAUSER 26 CEO 20-10-30 PALFINGER Publication of Results Q1-Q3/2020
Slide 27: Outlook 2020
OUTLOOK 2020 Noticeable stabilisation of markets, US market slowing down but still above average volume while CIS & China trending positively Revenue target for 2020 above EUR 1.5 billion EBIT target for 2020 EUR 100 million 27 Risks from COVID-19 hard to predict – depends greatly on infection curve
Slide 28: Financial targets 2024
Financial targets 2024 FINANCIAL TARGETS REMAINING THE SAME, BUT POSTPONED 2 YEARS FINANCIAL TARGETS 2024 MARKET LEADER IN CRANE AND LIFTING SOLUTIONS #1 28 EUR 2 billion 10% 10% revenue from organic growth average EBIT margin over the average ROCE over the economic cycle economic cycle 20-10-30 PAL
Slide 29: Stay healthy!
PAL-INGER STAY HEALTHY!
Slide 30: Investor relations and press contact
INVESTOR RELATIONS AND PRESS CONTACT ANDREAS KLAUSER FELIX STROHBICHLER HANNES ROITHER CEO CFO Company Spokesperson +43 662 2281-81008 +43 662 2281-81006 +43 662 2281-81100 a.klauser@palfinger.com f.strohbichler@palfinger.com h.roither@palfinger.com PALFINGER AG Lamprechtshausener Bundesstraße 8 Thi