Slide 1: Strong organic growth: Presentation on the results for the first three quarters of 2018
PALFINGER Strong organic growth Presentation on the results for the first three quarters of 2018 Vienna, 29 October 2018
Slide 2: The PALFINGER Group – An Overview
THE PALFINGER GROUP – AN OVERVIEW 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 centr
Slide 3: Consistent Growth – Organic and Through Acquisitions
CONSISTENT GROWTH – ORGANIC AND THROUGH ACQUISITIONS 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 Palfing
Slide 4: Highlights Q1–Q3 2018
HIGHLIGHTS Q1–Q3 2018 Revenue of EUR 1,182.6 million (+8.2%) marks new peak, operating profitability (expressed as EBITn margin) marginally below the 10 per cent threshold Strong organic expansion of business, mainly caused by positive performance in Europe, North America and CIS Marine business sti
Slide 5: LAND Segment
LAND SEGMENT 5
Slide 6: Product Portfolio LAND Segment
PRODUCT PORTFOLIO LAND SEGMENT PALFINGER is the leading supplier of loading, Loader cranes lifting and handling systems Timber and recycling cranes Telescopic cranes Mobile cranes Stiff boom cranes Access platforms Tail lifts Hooklifts and skiploaders Truck mounted forklifts Passenger lifts Bridge i
Slide 7: Global Footprint – In Sales, Service, Product Development and Value Creation
GLOBAL FOOTPRINT – IN SALES, SERVICE, PRODUCT DEVELOPMENT AND VALUE CREATION 17 R&D centres 30 production sites LAND 5,000 service centres (approx. 10,000 service staff / of which approx. 700 PALFINGER) 7
Slide 8: Highlights LAND Segment
HIGHLIGHTS LAND SEGMENT Growth based on significant expansion of business in EMEA, revenue increased by 11.9% to EUR 1,017.3 million » Bottlenecks reduced despite increased demand in EMEA » Restructuring measures in North America implemented to a major extent in the first half of 2018; one-off effec
Slide 9: SEA Segment
SEA SEGMENT 9
Slide 10: Product Portfolio SEA Segment
PRODUCT PORTFOLIO SEA SEGMENT PALFINGER MARINE is the leading manufacturer of high-end deck equipment in the maritime sector Marine cranes Offshore cranes Wind cranes Lifesaving equipment Winches & handling solutions 10
Slide 11: Global Footprint – In Sales, Service, Product Development and Value Creation
GLOBAL FOOTPRINT – IN SALES, SERVICE, PRODUCT DEVELOPMENT AND VALUE CREATION 8 R&D centres 8 production sites SEA 26 service centres (approx. 300 PALFINGER service staff) 11
Slide 12: Highlights SEA Segment
HIGHLIGHTS SEA SEGMENT Extremely difficult business environment, revenue declined by 10.3% to EUR 165.3 million » Share of segment revenue in consolidated revenue shrank from 16.9% to 14.0% » Positive effects of rising oil and gas prices limited to service business so far » Continuation of intensive
Slide 13: 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 » Executive Board estimates potential restatement may amount to appr
Slide 14: Key Financials
KEY FINANCIALS 14
Slide 15: 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 16: 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 1) Figures nor
Slide 17: 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 18: Return on Capital Employed
RETURN ON CAPITAL EMPLOYED 1) 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 8.2% 8.5% 7.7% 7.6% 10% 7.9% 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 19: 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 20: Gearing Ratio and Equity
GEARING RATIO AND EQUITY1) Net debt Equity Gearing % 700 95.8% 100% 90.8% 87.7% 600 83.5% 76.3% 529.0 551.9 525.9 533.2 608.1 80% 500 458.1 579.3 382.6 502.6 400 383.4 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 21: 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 ratio1) 38.0% Gearing1) 87.7% Net debt/EBITDA 2.95 0 Maturity 0–1 years 1–5 y
Slide 22: 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 23: Outlook
OUTLOOK 23
Slide 24: 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 25: 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