Slide 1: Presentation on the 2014 financial year
PALFINGER AG Presentation on the 2014 financial year 6 February 2015
Slide 2: Herbert Ortner, CEO
HERBERT ORTNER, CEO 2
Slide 3: 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 4: Ongoing market volatility: revenue, growth and volatility
ONGOING MARKET VOLATILITY REVENUE, GROWTH AND VOLATILITY (HALF YEAR) AREA UNITS from 2006 to 2014: + 463% EUROPEAN UNITS from 2006 to 2014: + 47% 700 600 189.5m 500 400 342.8m 33.6m 300 232.5m 200 – 51% + 87% 100 + 61% 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 Internationalization as basis for
Slide 5: Highlights 2014 (1)
HIGHLIGHTS 2014 (1) ! Performance satisfactory in light of economic situation » Internationalization proved its worth – record revenue » Good performance and potential in the Marine business area » Leading market position expanded further ! Increase in revenue of 8.4% to EUR 1,063.4 million ! EBIT d
Slide 6: Highlights 2014 (2)
HIGHLIGHTS 2014 (2) ! Joint venture in China » Sales development highly satisfactory » Construction of new production plant near Shanghai completed » Cross shareholding with SANY completed ! Expansion in Russia » Acquisition of PM-Group concluded » 2 joint ventures with KAMAZ » Doubling of productio
Slide 7: Strategy
STRATEGY 7
Slide 8: Internationalization (1)
INTERNATIONALIZATION (1) STRATEGIC TARGET 2017 REVENUE 2014 ASIA AND PACIFIC ASIA AND PACIFIC CIS CIS EMEA 15.0% ⅓ ⅓ AMERICAS 26.5% 58.5% ⅓ AMERICAS EMEA 8
Slide 9: Internationalization (2)
INTERNATIONALIZATION (2) REVENUE 2009 REVENUE 2014 3.2% 2.1% 4.7% 4.6% REST OF EUROPE AFRICA AND REST OF EUROPE AFRICA AND CIS 0.4% MIDDLE EAST MIDDLE EAST FAR EAST 3.5% CIS 5.6% 7.0% 9.4% CENTRAL AND FAR EAST SOUTH AMERICA 12.3% 5.8% NORTH AMERICA CENTRAL AND SOUTH AMERCIA 20.6% 49.1% 71.7% NORTH A
Slide 10: PALFINGER in Russia
PALFINGER IN RUSSIA ! Dealer organization built up since 2009 ! Acquisitions and partnerships for market expansion » Leading crane manufacturer INMAN » PM-Group Lifting Machines: market leader in timber and recycling cranes with area-wide dealer and service network » 2 joint ventures with largest tr
Slide 11: PALFINGER in China
PALFINGER IN CHINA ! 2006 construction of an assembly plant in Shenzhen ! 2012 partnership with SANY Group » JV Sany Palfinger in China: sale of PALFINGER products successfully started » Construction of new plant, start of production in 2015 » JV Palfinger Sany outside China: dealers and first sales
Slide 12: 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 13: Martin Zehnder, COO
MARTIN ZEHNDER, COO 13
Slide 14: 35 Production Sites
35 PRODUCTION SITES Lengau/AUT Köstendorf/AUT Elsbethen/AUT Löbau/GER Ganderkesee/GER Krefeld/GER Barneveld/NED Harderwijk/NED W. Garden City/GBR Cadelbosco/ITA Modena/ITA Caussade/FRA Marburg/SLO Delnice/CRO Lazuri/ROU Tenevo/BUL Cherven Brjag/BUL Gdynia/POL Ischimbai/RUS Velikiye Luki/RUS Arkhange
Slide 15: PALFINGER CIS
PALFINGER CIS Arkhangelsk Velikiye Luki Ischimbai 15
Slide 16: PALFINGER CIS
PALFINGER CIS Ischimbai/RUS 16
Slide 17: PALFINGER China
PALFINGER CHINA Rudong/CHN 17
Slide 18: Primary Objective: Flexibility
PRIMARY OBJECTIVE: FLEXIBILITY 2014 2019 2014 2019 65% + 12% 77% 46% + 17% 63% 2014 2019 2014 2019 71% + 6% 77% 63% + 15% 80% 2014 2019 44% + 13% 57% 2014 2019 49% + 19% 68% 18
Slide 19: Evaluation Criteria
EVALUATION CRITERIA Double sourcing/ Purchasing multisourcing Volume flexibility Purchase commitments Worktime flexiblity Worktime flexibility Human resources employees workers Process optimization / Direct and indirect Current capital / Finance / processes costs throughput time EBIT / lean administ
Slide 20: Flexibility Matrix
FLEXIBILITY MATRIX Responsible for Content: Eric Double-‐ / Multisourcing 100% Current C apital / Sourcing -‐ Volume 75% Throughput Time Flexibility 50% 25% Process Optimization / Purchase 0% EBIT / Lean Admin Commitments Direct and Worktime indirect cost flexibility workers Worktime flexibility a
Slide 21: Challenge Value Creation
CHALLENGE VALUE CREATION ! Adjusted business models for individual products and regions ! ! Standardized processes with regional characteristics ! ! Contract manufacturing ! ! Capacity expansions and investments in production sites ! ! Value creation in the region for the region ! ! Further increase
Slide 22: Segments – Wolfgang Pilz, CMO
SEGMENTS WOLFGANG PILZ, CMO 22
Slide 23: Segment Financials
SEGMENT FINANCIALS SEGMENT REVENUE 2013 2014 % EUROPEAN UNITS 651.0 720.3 + 10.8% AREA UNITS 329.6 343.1 + 4.1% VENTURES – – – SEGMENT EBIT 2013 2014 % EUROPEAN UNITS 83.5 75.0 (10.2%) AREA UNITS 11.4 10.4 (8.7%) VENTURES (20.3) (19.0) + 6.2% Acc. to IFRS in EUR million. Minor rounding differences m
Slide 24: European Units Segment
EUROPEAN UNITS SEGMENT ! Still a mixed picture in Europe, increase in revenue of 10.6%, weak demand in Q3 » Business units Loader Cranes, EPSILON, Railway Systems and Production posted increases » Other business units stagnated or recorded declines in revenue » Germany, Switzerland, Sweden, UK and B
Slide 25: Area Units Segment
AREA UNITS SEGMENT ! Revenue increased by 4.1% » North America marked by harsh winter, then strong market dynamics » South America suffered losses caused by exchange rate developments and reduction in public funding » Asia reported substantial increases, sales in China above budget » New production
Slide 26: 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 » Preparation of further acquisitions for the Marine business area ! Continuation of cost
Slide 27: Key Financials – Christoph Kaml, CFO
KEY FINANCIALS CHRISTOPH KAML, CFO 27
Slide 28: Key Financials
KEY FINANCIALS 2012 2013 2014 % Revenue 935.2 980.7 1,063.4 + 8.4% EBITDA 98.0 105.5 104.6 (0.8%) EBITDA margin 10.5% 10.8% 9.8% – EBIT 68.5 74.1 66.5 (10.3%) EBIT margin 7.3% 7.6% 6.3% – Result before income tax 53.7 61.1 54.6 (10.7%) Consolidated net result for the 40.4 44.0 38.4 (12.8%) period Di
Slide 29: Quarterly Figures
QUARTERLY FIGURES Revenue EBIT 300 281 50 265 264 267 241 247 249 241 251 250 222 224 223 226 40 200 30 150 20 100 19.5 21.1 20.4 21.0 17.7 16.5 18.1 16.9 18.1 15.5 14.8 14.6 10 50 10.5 0 0 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 EBIT 7.0% 7.9% 8.1% 6.6% 6.7% 8.
Slide 30: Capital Employed
CAPITAL EMPLOYED* Non-current operating assets Net working capital (in relation to revenue) 800 711 552 594 600 176 (17%) 462 501 151 (16%) 172 (18%) 400 118 (18%) 119 (14%) 535 200 344 382 401 422 0 2010 2011 2012 2013 2014 Increase through expansion of business volume, net è working capital as pe
Slide 31: Investments
INVESTMENTS Net investments Depreciation, amortization and impairment 70 65.9 60 50 40.8 38.1 40 28.8 29.5 32.0 31.4 23.7 18.7 22.7 30 20 10 0 2010 2011 2012 2013 2014 è Investments to support further development of areas * Adjusted by acquisition of interest in SANY, total: EUR 175,855 thousand. A
Slide 32: Gearing Ratio and Equity
GEARING RATIO AND EQUITY Net debt Equity Gearing % 500 461,3 100 % 385,9 356,6 400 352,8 364,9 77.3% 319,9 75 % 300 217,6 59.6% 217,9 56.5% 50 % 200 160.9 50.3% 166.9% 47.3% 25 % 100 0 0% 2010 2011 2012 2013 2014 è Net debt funded for the long term Acc. to IFRS in EUR million. Minor rounding differ
Slide 33: Free Cash Flows
FREE CASH FLOWS 2012 2013 2014 EBTDA 82.8 92.5 92.4 +/– Non-cash result from companies at (1.9) (6.1) (1.1) equity +/– Change in working capital (12.8) (18.1) (37.6) +/– Cash flows from tax payments (12.7) (5.8) (6.5) Cash flows from operating activities 55.4 62.5 47.2 +/– Cash flows from investing
Slide 34: Outlook – Herbert Ortner, CEO
OUTLOOK HERBERT ORTNER, CEO 34
Slide 35: 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 ! Support high pace of growth in marine business ! Further increase in flexibility (lean administration) » Fixed-cost control of all proces
Slide 36: Outlook and Objectives – Externally
OUTLOOK AND OBJECTIVES – EXTERNALLY ! Growth in North America and Asia ! Increases in marine business ! Recovery in Europe è Revenue expected to increase in 2015 36
Slide 37: Investor Relations
INVESTOR RELATIONS Herbert Ortner, CEO Hannes Roither, Company Spokesperson Phone +43 662 46 84-82222 Phone +43 662 46 84-82260 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 state
Slide 38: Back Up
BACK UP 38
Slide 39: Return on Capital Employed
RETURN ON CAPITAL EMPLOYED NOPLAT Capital Employed Return on Capital Employed % 800 710,7 40 % 700 593,9 600 552,2 30 % 500,7 500 462,3 400 20 % 300 11.1% 10.2% 9.8% 7.1% 7.4% 200 10 % 100 55.5 56.3 58.5 52.7 32.7 0 0% 2010 2011 2012 2013 2014 Acc. to IFRS in EUR million. Minor rounding differences
Slide 40: Balance Sheet Structure
BALANCE SHEET STRUCTURE ASSETS LIABILITIES Non-current assets Equity Current assets Non-current liabilities Current liabilities 1.130 1.130 1200 1200 1000 850 1000 850 259 454 800 800 211 600 420 600 410 253 400 400 676 200 429 200 386 461 0 0 2013 2014 2013 2014 è Long-term financial structure Acc
Slide 41: Financing Structure as at Dec 2014
FINANCING STRUCTURE AS AT 31 DEC 2014 300 273 Ø Interest rate 2.28% Ø Remaining time to maturity 3.3 years 200 Financial assets EUR 20.8m Equity ratio 40.7% 100 82 41 0 Maturity 2015 2016 after 2016 Acc. to IFRS in EUR million. Minor rounding differences may occur. 41
Slide 42: PALFINGER Shares
PALFINGER SHARES SHAREHOLDER STRUCTURE SHAREHOLDER INFORMATION AS AT 31 DEC 2014 10% 1% AT000075830 ISIN SANY Group PALFINGER AG 5 Number of shares 37,593,258 thereof own shares 291,968 Share price as at end of period EUR 20.99 30% free float Market capitalization EUR 789.08m Earnings per share EUR
Slide 43: Performance of PALFINGER Shares Since 2014
PERFORMANCE OF PALFINGER SHARES SINCE 2014 120 DAX 100 ATX 80 PALFINGER AG EUR 23.15 60 40 2 Jan 2014 2 Jan 2015 30 Jan 2015 43
Slide 44: Local Footprint: Sourcing
LOCAL FOOTPRINT: SOURCING NORTH AMERICA: 80% CIS: 65% EMEA: 99% ASIA AND PACIFIC: 25% SOUTH AMERICA: 75% 44
Slide 45: Financial Calendar 2015
FINANCIAL CALENDAR 2015 11 March 2015 Annual General Meeting 13 March 2015 Ex-dividend day 17 March 2015 Dividend payment day 30 April 2015 Publication of the results for the first quarter of 2015 30 July 2015 Publication of the results for the first half of 2015 30 October 2015 Publication of the r