Palfinger Ag · VIE:PAL
Palfinger — Q3 2023 Earnings Presentation
24 slides from Palfinger's earnings presentation, Oct 30, 2023
Slide 1: Publication of Results Q1-Q3/2023
PUBLICATION OF RESULTS Q1-Q3/2023 Bergheim, October 30, 2023
Slide 2: PALFINGER at a glance
PALFINGER at a glance NUMBER 1 IN THE WORLD Global market leader for cranes and 1 lifting solutions with a revenue of EUR 2.23 billion in 2022 Present in all regions with 30 production sites and around 5,000 service centers Around 12,700 employees (not including contract workers) at the end of Q3/20
Slide 3: Resilience through industry diversity
The right solution for every challenge RESILIENCE THROUGH INDUSTRY DIVERSITY > 40% Construction ~ 15% Forestry & Agriculture > 10% Waste Mgmt & Recycling > 5% Transport & Logistics ~ 5% Public Sector ~ 5% Rental ~ 5% Offshore | Oil and Gas < 5% Railway < 5% Offshore Wind < 5% Aquaculture & Fishing <
Slide 4: Sustainability as a key driver of strategic and operational action
Sustainability SUSTAINABILITY AS A KEY DRIVER OF STRATEGIC AND OPERATIONAL ACTION FOR THE LIVING PLANET WE FOR ALL THE PEOPLE FOR THE FUTURE-FORWARD ALL DEPEND ON WE TOUCH WAY OF DOING BUSINESS Fewer emissions Safe & healthy Committed to on all levels our values Focus on Positive impact on Qualified
Slide 5: Q1-Q3/2023 exceptional performance in a difficult environment
2021 at a Glance Q1-Q3/2023 at a glance Q1-Q3/2023 EXCEPTIONAL PERFORMANCE IN A DIFFICULT ENVIRONMENT REVENUE, EBIT AND INFLATION AND HIGH INTEREST HIGH INVENTORY LEVELS DUE CONSOLIDATED NET RESULT RATES IMPACT ORDER TO POOR TRUCK DELIVERY AT RECORD LEVELS. INTAKE IN EMEA. RELIABILITY IN EMEA AND NA
Slide 6: Segment Sales & Service
SEGMENT SALES & SERVICE Vision and Strategy 2030
Slide 7: High profitability in EMEA and NAM
Segment Sales & Service HIGH PROFITABILITY IN EMEA AND NAM NAM: Revenue growth above 30 % and continued positive development in earnings. LATAM: Solid performance despite difficult market environment. APAC: High order intake for loader cranes, particularly in the future market of India. Revenue and
Slide 8: Significant growth in revenue and EBIT due to full effectiveness of price increases
Segment Sales & Service SIGNIFICANT GROWTH IN REVENUE AND EBIT DUE TO FULL EFFECTIVENESS OF THE IMPLEMENTED PRICE INCREASES in EUR million Q1-Q3/2021 Q1-Q3/20221) Q1-Q3/2023 Δ% External revenue 1,241.5 1,379.9 1,629.5 +18.1 % EBITDA 151.2 122.2 165.8 +35.7 % EBIT 124.8 105.2 148.3 +41.0 % EBIT margi
Slide 9: Segment Operations
SEGMENT OPERATIONS Vision and Strategy 2030
Slide 10: Supply chain improvement and start of decline in material prices
Segment Operations SUPPLY CHAIN IMPROVEMENT AND START OF DECLINE IN MATERIAL PRICES Significantly improved delivery reliability for purchased components due to the macroeconomic environment. Stable production output in EMEA. Production in NAM region slowed down due to chassis availability. Decrease
Slide 11: Economic slowdown leads to decline in revenues in manufacturing for third parties
Segment Operations ECONOMIC SLOWDOWN LEADS TO A SIGNIFICANT DECLINE IN REVENUES IN MANUFACTURING FOR THIRD PARTIES in EUR million Q1-Q3/2021 Q1-Q3/20221) Q1-Q3/2023 Δ% External revenue 96.1 161.8 129.3 -20.1 % EBITDA 51.0 63.7 98.4 +54.5 % EBIT 24.9 34.5 64.6 +87.2 % 1) Previous year figures for Q1-
Slide 12: Other non-reportable segments
SEGMENT OTHER NON-REPORTABLE SEGMENTS Vision and Strategy 2030
Slide 13: Product line Tail and Passenger Lifts with new structure
Other non-reportable segments PRODUCT LINE TAIL AND PASSENGER LIFTS WITH NEW STRUCTURE Tail and Passenger Lifts product line spun-off from the global PALFINGER organization (GPO) due to the specific market segment requirements with relatively low synergies with the other product lines. New organizat
Slide 14: One-off effect of resegmentation, currency effects and higher holding costs impact EBIT
Other non-reportable segments ONE-OFF EFFECT OF RESEGMENTATION, CURRENCY EFFECTS AND HIGHER HOLDING COSTS IMPACT EBIT in EUR million Q1-Q3/2021 Q1-Q3/20221) Q1-Q3/2023 Δ% External revenue - 39.2 40.1 +2.3 % EBITDA -13.9 -15.3 -30.8 +101.3 % EBIT -24.3 -27.2 -47.9 +76.1 % 1) Previous year figures for
Slide 15: PALFINGER Group
PALFINGER GROUP Vision and Strategy 2030
Slide 16: By far the best Q1-Q3 result in PALFINGER's history
PALFINGER Group BY FAR THE BEST Q1-Q3 RESULT IN PALFINGER’S HISTORY in EUR million Q1-Q3/2021 Q1-Q3/2022 Q1-Q3/2023 Δ% Revenue 1,337.6 1,580.9 1,798.9 +13.8 % EBITDA 188.3 170.6 233.4 +36.8 % EBIT (operating result) 125.4 112.5 165.0 +46.7 % EBIT margin 9.4 % 7.1 % 9.2 % – Consolidated net result 71
Slide 17: High inventory levels continue to influence net debt
PALFINGER Group HIGH INVENTORY LEVELS CONTINUE TO INFLUENCE NET DEBT – MEASURES FOR REDUCTION IMPLEMENTED in EUR million 30/09/2021 30/09/2022 30/09/2023 Financial liabilities (FV) 1) 494.6 719.1 794.1 Avg. interest debt 2) 1.28 % 1.91 % 3.68 % Avg. remaining term debt 2.08 years 3.31 years 3.18 yea
Slide 18: Equity reduced due to currency effects, net debt/EBITDA and ROCE improved
PALFINGER Group EQUITY REDUCED DUE TO CURRENCY EFFECTS, NET DEBT/EBITDA AND ROCE AT IMPROVED LEVELS in EUR million 30/09/2021 30/09/2022 30/09/2023 Equity 689.2 728.6 701.9 Equity ratio 39.2 % 35.7 % 34.0 % Gearing 61.1 % 86.4 % 102.4 % Net debt/EBITDA 1.78 2.79 2.46 ROCE* 11.0 % 8.7 % 11.3 % * ROCE
Slide 19: Positive free cash flow in Q3 following negative free cash flow in first half
PALFINGER Group POSITIVE FREE CASH FLOW IN Q3 FOLLOWING NEGATIVE FREE CASH FLOW IN THE FIRST HALF YEAR Q1-Q3/2023 PALFINGER Group in EUR million Q1-Q3/2021 Q1-Q3/2022 EBTDA 181.0 163.1 209.0 +/- non-cash income from at-equity -8.1 6.8 -5.4 companies +/- change in working capital -53.1 -137.9 -112.8
Slide 20: Outlook 2023
OUTLOOK 2023
Slide 21: On track for a significant revenue and EBIT record
Outlook 2023 ON TRACK FOR A SIGNIFICANT REVENUE AND EBIT RECORD Management expects revenue of EUR 2.4 billion and EBIT above EUR 200 million for the full year 2023. Order book coverage until end of Q1/2024. No noticeable market recovery in EMEA currently foreseeable; still positive market environmen
Slide 22: Ambitious financial targets for 2027 - additional board member as of 2024
Guidance 2027 AMBITIOUS FINANCIAL TARGETS FOR 2027 - ADDITIONAL BOARD MEMBER AS OF 2024 MARIA KOLLER will strengthen the executive board as CHRO from January 2024 to contribute to achieving these goals. #1 Market leader for crane and lifting solutions EUR 3.0 billion * Revenue from organic growth 10
Slide 23: Q&A
Q&A
Slide 24: Investor Relations Contacts
INVESTOR RELATIONS CONTACTS ANDREAS KLAUSER FELIX STROHBICHLER HANNES ROITHER CEO CFO GROUP 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 Diese Präsenta