Slide 1: PALFINGER accelerated growth pace in 2015
PALFINGER AG PALFINGER accelerated growth pace in 2015 Record revenue and earnings Presentation on the 2015 financial year 5 February 2016
Slide 2: Herbert Ortner, CEO
HERBERT ORTNER, CEO 2
Slide 3: 2015 at a Glance
2015 AT A GLANCE 2015: Record year despite difficult environment » Revenue increased by 15.7% to EUR 1,229.9 million » EBIT increased by 58.0% to EUR 104.4 million » Consolidated net result increased by 68.7% to EUR 64.4 million Outstanding position on the market and among competitors due to impleme
Slide 4: Ongoing Market Volatility
ONGOING MARKET VOLATILITY REVENUE, GROWTH AND VOLATILITY (QUARTERS) AREA UNITS from 2008 to 2015: + 388% EUROPEAN UNITS from 2008 to 2015: + 19% 400 EUR 109.9m 300 EUR 22.5m EUR 221.0m 200 EUR 186.5m 100 Total revenue – 45% + 243% since 2009 0 2008 2009 2010 2011 2012 2013 2014 2015 Internationaliza
Slide 5: Highlights 2015
HIGHLIGHTS 2015 2015 marked by steep growth and strong earnings » Growth achieved in Europe, North America and CIS » Demand for loader cranes strong in Europe » Revenue in North America increased by approx. 30% » Local value creation in Russia proved its worth » Joint venture with SANY in China was
Slide 6: Strategic Highlights 2015
STRATEGIC HIGHLIGHTS 2015 Establishment of local value creation in Russia » Integration of PM-Group Lifting Machines » Successful start of production at the new INMAN plant » Start of operations of the joint ventures with KAMAZ » Lack of exports to CIS due to sanctions more than compensated Joint ve
Slide 7: Strategy
STRATEGY 7
Slide 8: PALFINGER at a Glance
PALFINGER AT A GLANCE Leading international manufacturer of innovative lifting solutions » World market leader in loader cranes, timber and recycling cranes, hooklifts, marine cranes, wind cranes. Leading specialist in tail lifts, truck mounted forklifts and high-tech railway systems Global sales an
Slide 9: 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 Tail lifts Truck mounted forklifts Hooklifts Access platforms
Slide 10: Internationalization (1)
INTERNATIONALIZATION (1) STRATEGIC TARGET 2017 REVENUE 2015 approx. EUR 1,800m1) EUR 1,229.9m ASIA AND PACIFIC ASIA AND PACIFIC CIS CIS EMEA 15.8% ⅓ ⅓ AMERICAS 26.8% 57.3% ⅓ AMERICAS EMEA 1) including JVs in China and Russia 10
Slide 11: Internationalization (2)
INTERNATIONALIZATION (2) REVENUE 2009 REVENUE 2015 EUR 505.3m EUR 1,229.9m 3.2% 2.1% 5.2% 4.5% REST OF EUROPE AFRICA AND REST OF AFRICA AND CIS 0.4% MIDDLE EAST EUROPE MIDDLE EAST FAR EAST 3.5% CIS 5.5% 7.0% 10.3% CENTRAL AND FAR EAST SOUTH AMERICA 12.3% 3.5% NORTH AMERICA CENTRAL AND SOUTH AMERICA
Slide 12: 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 truck
Slide 13: 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 in Rudong, start of production in 2015 » JV Palfinger Sany outside China: dealers and first
Slide 14: Strategic Objectives 2017
STRATEGIC OBJECTIVES 2017 Growth, primarily in BRIC countries Completion of product portfolio in all regions Development of China and CIS into second domestic market Global balance of production and proximity to customers Consolidation of position in the marine and offshore areas Maintaining innovat
Slide 15: Martin Zehnder, COO
MARTIN ZEHNDER, COO 15
Slide 16: 36 Production Sites
36 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 Maribor/SLO Delnice/CRO Lazuri/ROU Tenevo/BUL Cherven Brjag/BUL Gdynia/POL Ishimbay/RUS Velikiye Luki/RUS Neftekams
Slide 17: Modena – Italy
MODENA – ITALY New product group access platforms for small trucks since 2013 Currently 13 models – launch of new product group on crawlers in 2016 Products for EMEA, NA, SA, CIS and Asia&Pacific Manufacture of components in PALFINGER’s production plants Assembly in Italy Delivery of finished vehicl
Slide 18: Lazuri – Romania
LAZURI – ROMANIA Established as a joint venture in 2009 World’s third largest producer of chrome plated bars and tubes The use of continuous electroplating offers advantages over the traditional electroplating bath » Impact on the environment » Energy consumption » Productivity » Quality 12% of tota
Slide 19: Ishimbay - Russia
ISHIMBAY - RUSSIA INMAN acquired in 2012 Largest producer of loader cranes in Russia New production plant opened in 2015 Production area: 10,000 m² Total investments: EUR 13 million Integration in production footprint CIS 19
Slide 20: The Challenges of Value Creation
THE CHALLENGES OF VALUE CREATION Adjusted business models for individual products and regions Standardized processes adjusted to regional needs Contract manufacturing Capacity expansions and investments in production sites Further enhancing top-quality level of our products and processes Utilizing g
Slide 21: Flexibility in Value-Creation Footprint
FLEXIBILITY IN VALUE-CREATION FOOTPRINT Pronounced exchange rate shifts + 54,54% + 20,46% - 16,46% - 51,82% Potential: Production of components and products for other currency areas Prerequisites: » Production plants in the currency areas » Products and components identical all over the world (custo
Slide 22: Digitization and Industry 4.0
DIGITIZATION AND INDUSTRY 4.0 Distinction between product reference and production reference: Product reference smart connected products or Digitization Production reference smart production or Industry 4.0 Real-time information to contribute to optimization of the entire value- creation chain a
Slide 23: Digitization Using the Example of a Loader Crane
DIGITIZATION USING THE EXAMPLE OF A LOADER CRANE Sensors for … » Cylinder pressure [l] » Angulation » Length measurement [α] » Force measurement Geometry and forces defined [p] [F] Advantages … » Increase stability » Automated folding » Wear detection » Work-related rental costs » Optimization o
Slide 24: Industry 4.0 Using the Example of Automated Profile Manufacturing
INDUSTRY 4.0 USING THE EXAMPLE OF AUTOMATED PROFILE MANUFACTURING Sheet metal storage 1 1 Interlinked, automated and self-regulating system Roughness measurement for partial sliding 2 Laser cutting surface optimization 2 3 Bending force monitoring for quality control Surface treatment 4 Dimension co
Slide 25: Segments – Wolfgang Pilz, CMO
SEGMENTS WOLFGANG PILZ, CMO 25
Slide 26: Segment Financials
SEGMENT FINANCIALS SEGMENT REVENUE 2014 2015 % EUROPEAN UNITS 720.3 833.8 + 15.7% AREA UNITS 343.1 396.1 + 15.5% VENTURES – – – SEGMENT EBIT 2014 2015 % EUROPEAN UNITS 75.0 107.0 + 42.8% AREA UNITS 10.11) 14.0 + 40.0% VENTURES (19.0) (16.0) + 15.8% 1) The figures for 2013 and 2014 were adjusted with
Slide 27: European Units Segment
EUROPEAN UNITS SEGMENT Visibility remains low in Europe, but nevertheless increase of 15.7% to EUR 833.8 million achieved » Loader Cranes, Access Platforms, Railway Systems, Timber and Recycling Cranes, Hooklifts and Truck Mounted Forklifts posted increases in sales » Satisfactory capacity utilizati
Slide 28: Area Units Segment
AREA UNITS SEGMENT Revenue increased by 15.5% to EUR 396.1 million » North America posted strong growth » Joint venture with Fairwind in the USA » Local value creation in Russia fully utilized » Asia recorded increases, good capacity utilization of the plant in Rudong » South America suffered losses
Slide 29: Ventures Unit
VENTURES UNIT Focus on integration of the acquired companies » Establishment of operations of the two joint ventures with KAMAZ » Acquisition of Norwegian Deck Machinery AS completed » Forward integration through joint venture with Fairwind LLC Preparation of takeover of Spanish dealer and foundatio
Slide 30: Key Financials – Christoph Kaml, CFO
KEY FINANCIALS CHRISTOPH KAML, CFO 30
Slide 31: Key Financials
KEY FINANCIALS 20131) 20141) 2015 % Revenue 973.9 1,063.4 1,229.9 + 15.7% EBITDA 100.7 104.6 145.3 + 38.9% EBITDA margin 10.3% 9.8% 11.8% – EBIT 69.0 66.1 104.4 + 57.9% EBIT margin 7.1% 6.2% 8.5% – Result before income tax 56.0 54.2 93.0 + 71.6% Consolidated net result for the 38.7 38.2 64.4 + 68.7%
Slide 32: Quarterly Figures
QUARTERLY FIGURES Revenue EBIT 350 331 50 314 281 292 293 300 267 258 264 40 247 249 241 251 250 226 200 30 30.0 150 27.0 23.5 23.9 20 21.1 20.3 20.9 100 18.1 16.9 16.5 13.0 14.5 10 50 10.4 0 0 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 EBIT 6.7% 8.0% 8.4% 7.0% 6.9
Slide 33: Capital Employed
CAPITAL EMPLOYED1) Non-current operating assets Net working capital (as percentage of revenue) 900 834 800 705 700 179 (15%) 591 600 551 175 (16%) 500 500 152 (16%) 171 (18%) 400 119 (14%) 300 656 530 200 381 399 420 100 0 2011 2012 2013 2) 2014 2) 2015 Increase through expansion of business volume,
Slide 34: Investments
INVESTMENTS Net investments Depreciation, amortization and impairment 70 65.9 2) 60.4 60 50 40.8 41.0 38.6 40 31.7 31.7 29.2 29.9 30 23.7 20 10 0 2011 2012 2013 1) 2014 1) 2015 Investments to support further development of the areas 1) The figures for 2013 and 2014 were adjusted with retrospective
Slide 35: Gearing Ratio and Equity
GEARING RATIO AND EQUITY Net debt Equity Gearing % 600 100 % 510.7 500 78.4% 454.7 75 % 379.7 400 351.9 59.8% 363.8 57.9% 356.6 347.9 68.1% 300 47.4% 50 % 217.6 220.0 200 166.9 25 % 100 0 0% 2011 2012 2013 1) 2014 1) 2015 Decrease in net debt and gearing 1) The figures for 2013 and 2014 were adjus
Slide 36: Free Cash Flows
FREE CASH FLOWS 20131) 20141) 2015 EBTDA 87.8 92.4 133.9 +/– Non-cash result from companies 0.5 (1.1) (4.0) at equity +/– Change in working capital (13.4) (37.6) (11.0) +/– Cash flows from tax payments (5.7) (6.5) (8.3) Cash flows from operating activities 69.2 47.2 110.6 +/– Cash flows from investi
Slide 37: Outlook – Herbert Ortner, CEO
OUTLOOK HERBERT ORTNER, CEO 37
Slide 38: Outlook and Objectives – Internally
OUTLOOK AND OBJECTIVES – INTERNALLY Continuation of internationalization strategy » Completion of product portfolio in all regions in the medium term » Focus on sustainable market development in China and Russia Further promotion of growth in the marine business Further increase in flexibility (lean
Slide 39: Outlook and Objectives – Externally
OUTLOOK AND OBJECTIVES – EXTERNALLY Heterogeneous economic developments, no pronounced growth dynamics Growth achieved in non-European regions, particularly in North America and Asia. Satisfactory demand in CIS in spite of difficult conditions. South America affected by shrinking market. Political t
Slide 40: Investor Relations
INVESTOR RELATIONS Herbert Ortner, CEO Hannes Roither, Company Spokesperson Phone +43 662 2281-81001 Phone +43 662 2281-81100 h.ortner@palfinger.com h.roither@palfinger.com PALFINGER AG Lamprechtshausener Bundesstrasse 8 5101 Bergheim www.palfinger.ag This presentation contains forward-looking state
Slide 41: Back Up
BACK UP 41
Slide 42: Return on Capital Employed
RETURN ON CAPITAL EMPLOYED NOPLAT Capital employed Return on capital employed % 900 834.9 40 % 800 705.3 700 30 % 591.2 600 551.3 500.0 500 20 % 400 300 11.1% 10.2% 9.0% 9.6% 200 7.4% 10 % 55.5 56.3 53.2 52.5 80.1 100 0 0% 2011 2012 2013 1) 2014 1) 2015 1) The figures for 2013 and 2014 were adjusted
Slide 43: Balance Sheet Structure
BALANCE SHEET STRUCTURE ASSETS LIABILITIES Equity Non-current assets Current assets Non-current liabilities Current liabilities 1400 1,212 1400 1,212 1200 1,122 1200 1,122 1000 1000 259 306 454 503 800 800 409 396 600 600 400 709 400 669 510 200 200 455 0 0 2014 1) 2015 2014 1) 2015 Long-term fina
Slide 44: Financing Structure as at Dec 2015
FINANCING STRUCTURE AS AT 31 DEC 2015 400 Financial liabilities 405.5 Mio EUR 302 Ø Interest rate 2.06% 300 Ø Remaining time to maturity 3.1 years Cash and cash equivalents 21.6 Mio EUR 200 Net Debt 347.9 Mio EUR Equity ratio 42.1% 100 74 Gearing 68.1% 29 Net Debt/EBITDA 2.39 0 Maturity 0–1 year 1–5
Slide 45: PALFINGER Shares
PALFINGER SHARES SHAREHOLDER STRUCTURE SHAREHOLDER INFORMATION AS AT 31 DEC 2015 10% 1% ISIN AT0000758305 SANY Group PALFINGER AG Number of shares 37,593,258 thereof own shares 282,756 Share price as at end EUR 26.45 of period 30% free float Market capitalization EUR 994.34m Earnings per share1) EUR
Slide 46: Performance of PALFINGER Shares Since 2015
PERFORMANCE OF PALFINGER SHARES SINCE 2015 PALFINGER AG EUR 24.75 DAX ATX 2 Jan 2015 30 Dec 2015 22 Jan 2016 46
Slide 47: Financial Calendar 2016
FINANCIAL CALENDAR 2016 9 March 2016 Annual General Meeting 11 March 2016 Ex-dividend date 14 March 2016 Record date 15 March 2016 Dividend payment date Publication of the results for the 27 April 2016 first quarter of 2016 Publication of the results for the 27 July 2016 first half of 2016 Publicati