Slide 1: Unlocking potential
PALFINGER Unlocking potential Vienna, 30 October 2018
Slide 2: Andreas Klauser, CEO since June 2018
ANDREAS KLAUSER, CEO since 1 June 2018 Global Brand President of CASE IH and Steyr, COO of CNH Industrial Responsibility for EUR 25 billion in revenue and approx. 60,000 employees worldwide Integration of 12 brands and 9 business organizations (including Iveco, New Holland, CASE IH, Steyr) Ultimate
Slide 3: Our Record – The Company
OUR RECORD – The Company • My review after 100 working days at PALFINGER • Inspired team – entrepreneurial spirit • High complexity of products and business models • Outstanding technical expertise • Innovative products and solutions • Continuous striving for optimization and enhancement • High pote
Slide 4: Our Record – The Framework
OUR RECORD – The Framework • Consolidation of customers – concentration of purchasing power • Digital transformation of customer industries calls for new solutions • Aggressive growth strategies of our competitors • Slowdown of economic stability and higher volatility are probable • Increasing lack
Slide 5: Impressive growth over time
IMPRESSIVE GROWTH OVER TIME LAND segment from Q4 2009 to Q3 2018: +181% SEA segment from Q1 2011 to Q3 2018: +998% Quarterly revenue 400 Total revenue EUR +191.1% 2009–2017 330.4m 300 CAGR: 14.3%1) 2010 to 2017 24 acquisitions and joint ventures 200 Sky Steel Systems Palfinger Danmark Palfinger Iber
Slide 6: The Palfinger Group – Status Quo
THE PALFINGER GROUP – STATUS QUO Global market leader Revenue: approx. EUR 1.5bn, 10,212 employees (year end 2017) » 39 production sites 60.9% EMEA – 23.6% Americas – 15.5% Asia and Pacific, CIS LAND: approx. EUR 1.2bn SEA: approx. EUR 0.2bn » 8,200 employees » 1,700 employees » 5,000 service centre
Slide 7: Developing the organization through acquisitions
DEVELOPING THE ORGANIZATION THROUGH ACQUISITIONS 2017 EUR 1,470m 2016 EUR 1,360m Acquisition JV JV Acquisition Acquisition Acquisition Acquisition Acquisition EUR 1,230m 2015 Hidro-Grubert Kamaz Fairwind NDM Mycsa Harding SSS Palfinger Denmark 2014 EUR 1,060m 2013 EUR 980m JV Acq. JV Acquisition Acq
Slide 8: Adjusting the organization to the vision
ADJUSTING THE ORGANIZATION TO THE VISION 8
Slide 9: New organization for 2022 targets
NEW ORGANIZATION FOR 2022 TARGETS Requirements to be met by the organization Targets to be met by 2022 Efficiency 1. Worldwide #1 for lifting solutions Profitability Implementation 2. Financial targets for 2022 strength Synergies - Increase organic growth to EUR 2bn - @ 10% EBIT “over the cycle” Int
Slide 10: Unlocking potential
UNLOCKING POTENTIAL Market: • Expected organic growth of around 5 per cent in the years to come, with continuing growth in EMEA, CIS and China, and in the future once again in North and South America as well as India and Asia, but also through new products and services Internal integration: • Value-
Slide 11: Principles of the new organization
PRINCIPLES OF THE NEW ORGANIZATION CEO CFO COO GLOBAL GLOBAL EXECUTIVE GLOBAL GLOBAL EXECUTIVE GLOBAL GLOBAL EXECUTIVE FUNCTION FUNCTION PROJECT FUNCTION FUNCTION PROJECT FUNCTION FUNCTION PROJECT • Special projects with strong impact on the Product lines organization, e.g. implementation of GPO, tu
Slide 12: Unlocking potential
UNLOCKING POTENTIAL 12
Slide 13: Unlocking potential
UNLOCKING POTENTIAL 13
Slide 14: Unlocking potential
UNLOCKING POTENTIAL CPALFINGER 7 14
Slide 15: New technologies, new solutions
NEW TECHNOLOGIES, NEW SOLUTIONS Connectivity/IoT Augmented & Object recognition + virtual reality machine learning Commercial ChatBots for UAVs Sales & Service 15
Slide 16: Key financials
KEY FINANCIALS as at 30 October 2018 16
Slide 17: Financials LAND segment
FINANCIALS LAND SEGMENT Q1–Q3 2017 Q1–Q3 2018 % Revenue 908.8 1,017.3 +11.9% EBITDAn1) 153.8 168.6 +9.6% EBITDAn margin1) 16.9% 16.6% – EBITn1) 123.5 139.2 +12.7% EBITn margin1) 13.6% 13.7% – Restructuring costs 8.9 6.0 (32.4%) Continued increase in incoming orders 1) Figures normalized (n) by restr
Slide 18: Financials SEA segment
FINANCIALS SEA SEGMENT Q1–Q3 2017 Q1–Q3 2018 % Revenue 184.3 165.3 (10.3%) EBITDAn1) 5.8 4.0 (31.2%) EBITDAn margin1) 3.1% 2.4% – EBITn1) (3.8) (4.9) – EBITn margin1) (2.0%) (2.9%) – Restructuring costs 4.1 8.5 +107.6% Significant decline in revenue; intensive restructuring until 2019; consolidation
Slide 19: Impairment of goodwill of business area Marine
IMPAIRMENT OF GOODWILL OF BUSINESS AREA MARINE CASH-GENERATING UNIT (CGU) On the basis of an AFREP review, there is material need for impairment of the goodwill of the business area Marine cash-generating unit as at the end of 2017 » Management Board estimates that potential restatement may amount t
Slide 20: Key financials of the Palfinger Group
KEY FINANCIALS OF THE PALFINGER GROUP Q1–Q3 2016 Q1–Q3 2017 Q1–Q3 2018 % Revenue 996.6 1,093.1 1,182.6 +8.2% EBITDAn1) 131.1 147.6 157.1 +6.5% EBITDAn margin1) 13.2% 13.5% 13.3% – EBITn1) 96.9 105.3 116.4 +10.5% EBITn margin1) 9.7% 9.6% 9.8% – EBIT 86.4 91.9 101.7 +10.7% Consolidated net result 49.7
Slide 21: Return on capital employed
RETURN ON CAPITAL EMPLOYED1) Capital employed 2) Net working capital Return on capital employed % 1,099 1,115 1100 40% 1000 970 900 849 800 30% 720 700 600 20% 500 400 300 7.9% 8.2% 8.5% 7.7% 7.6% 10% 200 320 287 271 308 271 100 0 0% Q1–Q3 2014 Q1–Q3 2015 Q1–Q3 2016 Q1–Q3 2017 Q1–Q3 2018 1) Figures
Slide 22: Investments
INVESTMENTS Net investments Depreciation, amortization and impairment 69.0 70 60 52.2 48.5 45.9 50 44.1 42.3 40 35.0 30.3 30 26.3 1) 20 16.9 10 0 Q1–Q3 2014 Q1–Q3 2015 Q1–Q3 2016 Q1–Q3 2017 Q1–Q3 2018 Continued enlargement of production capacities and replacement investments 1) Adjusted by acquisiti
Slide 23: Gearing ratio and equity
GEARING RATIO AND EQUITY1) Net debt Equity Gearing % 700 95.8% 100% 90.8% 87.7% 83.5% 600 76.3% 529.0 551.9 525.9 533.2 608.1 80% 500 458.1 579.3 502.6 400 382.6 383.4 60% 300 40% 200 20% 100 0 0% Q1–Q3 2014 Q1–Q3 2015 Q1–Q3 2016 Q1–Q3 2017 Q1–Q3 2018 1) Figures before adjustment based on AFREP revi
Slide 24: Financing structure as at 30 Sept 2018
FINANCING STRUCTURE AS AT 30 SEPT 2018 300 258 Financial liabilities (FL) EUR 598.6m Ø Interest rate FL 1.66% 191 Ø Remaining time to maturity 200 3.25 years FL 150 Cash equivalents EUR 34.3m Net debt EUR 533.2m 100 Equity ratio 38.0% Gearing 87.7% Net debt/EBITDA 2.95 0 Maturity 0–1 years 1–5 years
Slide 25: Free cash flows
FREE CASH FLOWS Q1–Q3 2016 Q1–Q3 2017 Q1–Q3 2018 EBTDA 112.0 121.9 134.5 +/– Non-cash result from (3.4) (4.4) (2.3) companies at equity +/– Change in working capital (13.2) (41.4) (17.3) +/– Cash flows from tax payments (23.9) (14.7) (31.6) Cash flows from operating activities 71.5 61.4 83.3 +/– Cas
Slide 26: Outlook
OUTLOOK 26
Slide 27: Outlook and objectives
OUTLOOK AND OBJECTIVES Continued increase in incoming orders gives reason to expect further positive business development and operating profitability SANY repurchases 2.5% of its shares: Funds inflow of EUR 28.6 million Restructuring measures in the marine business will continue to depress earnings
Slide 28: Investor Relations
INVESTOR RELATIONS Andreas Klauser, CEO Hannes Roither, Company Spokesperson Phone +43 662 2281-81008 Phone +43 662 2281-81100 a.klauser@palfinger.com h.roither@palfinger.com PALFINGER AG Lamprechtshausener Bundesstrasse 8 5101 Bergheim www.palfinger.ag This presentation contains forward-looking sta