palfinger q1 14
DESCRIPTION
Palfinger AG Q1 2014 PresentationTRANSCRIPT
PALFINGER AG Presentation on the first quarter of 2014
May 2014
-50
50100150200250300350400450500550
ONGOING MARKET VOLATILITY
Flexibility and interna.onality as bases for success
2 Acc. to IFRS in EUR million.
REVENUE (HALF YEAR) AREA UNITS EUROPEAN UNITS
2005 2006 2007 2008 2009 2010 2011
0
2012
è2013
HIGHLIGHTS Q1
! Continued growth » Considerable increases in Europe » Harsh winter in North America and exchange rate fluctuations
slowed down growth in AREA UNITS
! Revenue increased by 18.5% to EUR 267.6 million
! EBIT rose by 11.3% to EUR 20.1 million » Significant increase in earnings of 25% in Europe » Losses in the AREA UNITS segment » Satisfactory development in the Marine business area
3
STRATEGY
4
PALFINGER AT A GLANCE
! Leading international manufacturer of innovative lifting solutions » World market leader in loader cranes, marine cranes, wind cranes
and container handling systems » Leading specialist in timber and recycling cranes, tail lifts,
truck mounted forklifts and high-tech railway systems
! Global sales and services network (more than 200 general importers/dealers and 4,500 sales and services centres worldwide)
! Global procurement, production and assembly (33 manufacturing and assembly locations)
! Strategic pillars: innovation – internationalization – flexibility
Maintaining and expanding the Group’s competitive advantage
5
è
STRATEGIC OBJECTIVES 2017
! Growth, primarily in BRIC countries
! Development of China into second domestic market
! Global balance of production and proximity to customers
! Consolidation of leading position in the marine and offshore areas
! Maintaining innovation leadership worldwide
! Meeting customers’ expectations through customized solutions
! Adjustment of production sites and technologies in Europe
! Pioneer for sustainable development, environmental protection and social responsibility
6
Revenue target 2017: approx. EUR 1.8 billion è
STRATEGIC HIGHLIGHTS Q1
! Closing of the Systems/Megarme transaction in January!! Annual General Meeting resolved to pay a higher dividend!! Resolution on mutual participations of PALFINGER and SANY!
7
2014 – a year of consolidation è
INTERNATIONALIZATION (1)
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STRATEGIC TARGET
ASIA & PACIFIC CIS
EMEA
AMERICAS
REVENUE Q1 2014
EMEA
AMERICAS
ASIA & PACIFIC CIS
⅓ ⅓
⅓
62.8% 23.4%
13.8%
INTERNATIONALIZATION (2)
REVENUE 2009 REVENUE Q1 2014
9
CIS 4.5%
4.1% AFRICA AND MIDDLE EAST
54.1% EUROPEAN UNION
17.0% NORTH AMERICA
6.4% CENTRAL AND
SOUTH AMERICA
9.3% FAR EAST
4.6% REST OF EUROPE CIS 0.4%
2.1% AFRICA AND MIDDLE EAST
71.7% EUROPEAN UNION
12.3% NORTH AMERICA
7.0% CENTRAL AND
SOUTH AMERICA
FAR EAST 3.5%
3.2% REST OF EUROPE
SEGMENTS
10
SEGMENT FINANCIALS
SEGMENT REVENUE Q1 2013 Q1 2014 %
EUROPEAN UNITS 153.1 191.5 + 25.0%
AREA UNITS 72.7 76.1 + 4.8%
VENTURES – – –
SEGMENT EBIT Q1 2013 Q1 2014 %
EUROPEAN UNITS 20.7 26.0 + 25.6%
AREA UNITS 1.9 (1.2) (164.5%)
VENTURES (4.2) (4.7) (12.8%)
11 Acc. to IFRS in EUR million. Minor rounding differences may occur.
EUROPEAN UNITS SEGMENT
! Increase in revenue of 25.1% to EUR 191.5 million!» All business units posted increases!» Systems/Megarme generated revenue of EUR 4.3 million!
! EBIT rose by 25.6% to EUR 26.0 million!» High margin of 13.6% despite investments!
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! Revenue rose by 4.6% to EUR 76.1 million!» Share in revenue came to 28.5%!» Good order intake in North America, success for EPSILON!» Slow public funding in Brazil !» Increases in CIS!
! EBIT negative again for the first time at –EUR 1.2 million!» Weather-related declines in North America!» Changes in the exchange rates of the real and ruble!
AREA UNITS SEGMENT
13
KEY FINANCIALS
14
KEY FIGURES
15 Acc. to IFRS in EUR million. Minor rounding differences may occur.
Q1 2012 Q1 2013 Q1 2014 %
Revenue 223.9 225.8 267.6 + 18.5%
EBITDA 25.0 25.4 28.6 + 12.7%
EBITDA margin 11.2% 11.3% 10.7% –
EBIT 17.7 18.1 20.1 + 11.3%
EBIT margin 7.9% 8.0% 7.5% –
Result before income tax 14.7 15.6 17.0 + 8.8%
Consolidated net result for the period 10.7 11.0 11.9 + 8.2%
QUARTERLY FIGURES
Continued growth
EBIT margin 7.9% 9.4% 7.8% 7.0% 7.9% 8.1% 6.6% 6.7% 8.0% 8.4% 7.0% 6.8% 7.5%
192223 210 222 224
241223
247226
249 241265 268
19.514.8 16.5 18.1
21.116.9 18.1 20.1
17.715.516.520.9
15.1
0
50
100
150
200
250
300
Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/140
10
20
30
40
50
Revenue EBIT
16 Acc. to IFRS in EUR million. Minor rounding differences may occur.
è
312 378 388 416 444
131103 143
172 187
0
100
200
300
400
500
600
Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014
Net working capital (as percentage of revenue)
Non-current operating assets
CAPITAL EMPLOYED*
Increase through acquisitions
17 Acc. to IFRS in EUR million. Minor rounding differences may occur.
è* Average.
(26%) (14%) (16%) (18%) (17%)
443 481
531
631 588
INVESTMENTS
18 Acc. to IFRS in EUR million. Minor rounding differences may occur.
3.04.1
12.2
7.0
11.5
4.96.2
7.3 7.48.5
0
5
10
15
Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014
Net investments
Depreciation, amortization and impairment
è Investments made primarily in Systems/Megarme
GEARING RATIO AND EQUITY
19 Acc. to IFRS in EUR million. Minor rounding differences may occur.
Equity ratio at a high level è
344.9 363.5
226.7195.1
271.1
163.6146.5
295.2
386.4
317.6
70.2 %62.4 %
51.5 %56.6 %
49.6 %
050
100150200250300350400450
Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 20140 %
20 %
40 %
60 %
80 %
Net debt Equity Gearing %
FREE CASH FLOWS
20 Acc. to IFRS in EUR million. Minor rounding differences may occur.
Q1 2012 Q1 2013 Q1 2014 EBTDA 22.0 22,9 25.4
+/– Non-cash result from companies at equity (1.2) 0.7 1.9
+/– Change in working capital (12.1) (4.0) (21.2)
+/– Cash flows from tax payments (1.2) (1.6) 0.0
Cash flows from operating activities 7.5 18.0 6.1 +/– Cash flows from investing activities (15.1) (8.9) (27.5) Cash flows after changes in working capital & investments (7.6) 9.1 (21.4)
+/– Cash flows from interest on borrowings adjusted by tax expense 2.1 1.8 2.1
Free cash flows (5.5) 10.9 (19.3) Cash flows from equity/investor capital (22.4) (18.4) (19.1)
Cash flows from net debt 30.0 9.2 40.5
OUTLOOK
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OUTLOOK AND OBJECTIVES – INTERNALLY
! Consolidation following rapid expansion in 2013!
! Focus on further steps in South America and the Marine business area!
! Introduction of additional product groups in BRIC markets, primarily China!
! Further increase in flexibility!
! Establishment of two plants, one in China and one in CIS !
! Closing of the acquisition of PM Group in CIS expected!
22
OUTLOOK AND OBJECTIVES – EXTERNALLY
! Improvement of economic situation in Europe noticeable !
! Further growth, also in the areas!
! Huge potential of Systems/Megarme business area!
! Organic and inorganic growth in revenue expected
23
è Once again, record revenue is planned
INVESTOR RELATIONS
Herbert Ortner, CEO Phone +43 662 46 84-2222
Hannes Roither, Company Spokesperson Phone +43 662 46 84-2260
PALFINGER AG Franz-Wolfram-Scherer-Strasse 24
5020 Salzburg www.palfinger.ag
This presentation contains forward-looking statements made on the basis of all information available at the time of preparation of this presentation. Actual outcomes and results may be different from those predicted.
24
BACK UP
25
BALANCE SHEET STRUCTURE
363 386
267 269212 283
0200400600800
1000
Q1 2013 Q1 2014
Current liabilitiesNon-current liabilitiesEquity
422 462
420 476
0200400600800
1000
Q1 2013 Q1 2014
Current assets
Non-current assets
938
ASSETS LIABILITIES
938 843 843
26 Acc. to IFRS in EUR million. Minor rounding differences may occur.
Long-term financial structure è
FINANCING STRUCTURE AS AT 31 MARCH 2014
Ø Interest rate 2.87%
Ø Remaining time to maturity 2.5 years
Financial assets EUR 15.9m
Equity ratio 41.2%
Maturity
6652
169
0
50
100
150
200
2014 2015 after 2015
27 Acc. to IFRS in EUR million. Minor rounding differences may occur.
PALFINGER SHARES
28
ISIN AT0000758305
Number of shares thereof own shares
35,730,000 328,090
Share price as at end of period EUR 28.20
Market capitalization EUR 1,007.6m
Earnings per share EUR 0.34
65% Palfinger family
34% free float
1% PALFINGER AG
SHAREHOLDER STRUCTURE SHAREHOLDER INFORMATION AS AT 31 MARCH 2014
80
100
120
140
160
180
200
PERFORMANCE OF PALFINGER SHARES SINCE 2013
2 Jan 2013 30 Apr 2014
PALFINGER AG EUR 26.6
ATX
DAX
29
2 Jan 2014
RESEARCH REPORTS
30
Berenberg Bank HSBC
Deutsche Bank Kepler Cheuvreux
Erste Group RCB
Goldman Sachs UBS
Hauck & Aufhäuser
Earnings Estimates – Consensus (in Mio EUR) 2014e 2015e
Umsatz 1,088.9 1,164.8
EBIT 94.8 110.9
Ergebnis je Aktie (in EUR) 1.58 1.90
FINANCIAL CALENDAR 2014
31
7 August 2014 Publication of results for the first half of 2014
7 November 2014 Publication of results for the first three quarters of 2014