Slide 1: Continuation of organic growth
PALFINGER AG Continuation of organic growth Presentation on the results for the first quarter of 2018 April 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) » 38 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 2009 to Q1 2018: +188% SEA segment from 2011 to Q1 2018: +1,129% Quarterly revenue 400 Total revenue EUR +191.1% 2009–2017 337.8m 300 CAGR: 14.3%1) 2010 to 2017 24 acquisitions and joint ventures 200 Sky Steel Systems Palfinger D
Slide 4: Highlights Q1
HIGHLIGHTS Q1 Revenue of EUR 394.2 million marks new record, operating profitability in the double-digit range again Primarily organic expansion of business, mainly caused by positive development in Europe and North America Restructuring in North America and in the marine business had a negative imp
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 20 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 and Americas, revenue increased by 13.6% to EUR 337.8 million » Acquisition of Palfinger Danmark AS generated positive momentum » Market environment in South America remained challenging, but downturn seems to have bot
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 Cranes Lifesaving equipment Winches & handling solutions Rope access 10
Slide 11: Global Footprint – In Sales, Service, Product Development and Value Creation
GLOBAL FOOTPRINT – IN SALES, SERVICE, PRODUCT DEVELOPMENT AND VALUE CREATION 9 R&D centres 10 production sites SEA 28 service centres (approx. 300 PALFINGER service staff) 11
Slide 12: Highlights SEA Segment
HIGHLIGHTS SEA SEGMENT Revenue decreased by 12.7% to EUR 56.4 million » Share of segment revenue in consolidated revenue thus shrank from 17.9% to 14.3% » Business environment still difficult due to strained situation in the oil and gas industry » Increase in incoming orders in some product areas po
Slide 13: Key Financials
KEY FINANCIALS 13
Slide 14: Financials LAND Segment
FINANCIALS LAND SEGMENT Q1 2017 Q1 2018 % Revenue 297.2 337.8 +13.6% EBITDAn1) 51.7 58.4 +13.0% EBITDAn margin1) 17.4% 17.3% – EBITn1) 41.6 48.2 +15.8% EBITn margin1) 14.0% 14.3% – Restructuring costs 3.6 2.5 (30.2%) Consistently strong growth and good operating profitability 1) Figures normalized (
Slide 15: Financials SEA Segment
FINANCIALS SEA SEGMENT Q1 2017 Q1 2018 % Revenue 64.6 56.4 (12.7%) EBITDAn1) 2.1 0.9 (56.9%) EBITDAn margin1) 3.3% 1.6% – EBITn1) (1.3) (2.1) (63.7%) EBITn margin1) (1.9%) (3.6%) – Restructuring costs 1.2 3.7 +202.9% Significant decline in revenue; intensification of restructuring 1) Figures normali
Slide 16: Key Financials of the PALFINGER Group
KEY FINANCIALS OF THE PALFINGER GROUP Q1 2016 Q1 2017 Q1 2018 % Revenue 318.8 361.9 394.2 +8.9% EBITDAn1) 42.8 50.9 54.0 +6.2% EBITDAn margin1) 13.4% 14.1% 13.7% – EBITn1) 32.0 36.6 39.9 +9.1% EBITn margin1) 10.0% 10.1% 10.1% – EBIT 30.2 31.6 33.6 +6.2% Consolidated net result 18.6 19.4 17.9 (7.7%)
Slide 17: Return on Capital Employed
RETURN ON CAPITAL EMPLOYED Capital employed Net working capital Return on capital employed % 1,100 1,099 1100 40% 1000 900 851 855 800 30% 700 623 600 20% 500 400 9.9% 300 8.8% 7.2% 7.5% 10% 6.5% 200 314 302 275 257 249 100 0 0% Q1 2014 Q1 2015 Q1 2016 Q1 2017 Q1 2018 Increase in ROCE due to optimiz
Slide 18: Investments
INVESTMENTS Net investments Depreciation, amortization and impairment 25 21.8 20 17.3 17.5 13.7 14.3 15 12.5 11.1 10.8 9.8 10 8.6 5 0 Q1 2014 Q1 2015 Q1 2016 Q1 2017 Q1 2018 Enlargement of production capacities and replacement investments Acc. to IFRS in EUR million. Minor rounding differences may o
Slide 19: Gearing Ratio and Equity
GEARING RATIO AND EQUITY Net debt Equity Gearing % 700 92.7% 94.8% 100% 80.8% 573.9 600 73.4% 505.6 532.3 539.1 568.8 80% 68.6% 500 373.5 397.7492.1 60% 400 346.8 300 274.2 40% 200 20% 100 0 0% Q1 2014 Q1 2015 Q1 2016 Q1 2017 Q1 2018 Translation effects lead to higher gearing Acc. to IFRS in EUR mil
Slide 20: Financing Structure as at 31 March 2018
FINANCING STRUCTURE AS AT 31 MARCH 2018 300 282 Financial liabilities (FL) EUR 602.0m Ø Interest rate FL 1.75% 209 Ø Remaining time to 200 3.69 years maturity FL Cash equivalents EUR 27.1m 111 Net debt EUR 539.1m 100 Equity ratio 36.1% Gearing 94.8% Net debt/EBITDA 3.13 0 Maturity 0–1 years 1–5 year
Slide 21: Free Cash Flows
FREE CASH FLOWS Q1 2016 Q1 2017 Q1 2018 EBTDA 38.0 43.5 47.3 +/– Non-cash result from 1.7 (1.4) (0.3) companies at equity +/– Change in working capital (8.1) (15.6) (20.4) +/– Cash flows from tax payments (0.5) (2.7) (6.9) Cash flows from operating activities 31.1 23.8 19.7 +/– Cash flows from inves
Slide 22: Outlook
OUTLOOK 22
Slide 23: Outlook and Objectives
OUTLOOK AND OBJECTIVES Further increase in incoming orders gives reason to expect continuation of positive performance and operating profitability Restructuring measures » Completion in North America in the first half of 2018 » Additional measures in the marine business will impact earnings in 2018
Slide 24: Investor Relations
INVESTOR RELATIONS Felix Strohbichler, CFO Hannes Roither, Company Spokesperson Phone +43 662 2281-81008 Phone +43 662 2281-81100 f.strohbichler@palfinger.com h.roither@palfinger.com PALFINGER AG Lamprechtshausener Bundesstrasse 8 5101 Bergheim www.palfinger.ag This presentation contains forward-loo