PALFINGER AT A GLANCE

PALFINGER AT A GLANCE
Company presentation 2014
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 5,000 sales and services centres worldwide)
Global procurement, production and assembly
(36 manufacturing and assembly locations)
Strategic pillars: innovation – internationalization – flexibility
 Maintaining and expanding the Group’s competitive advantage
2
5 CONTINENTS – 7 OCEANS
EMEA
Loader cranes
Timber and recycling cranes
Tail lifts
Access platforms
Hooklifts
Truck mounted forklifts
Railway systems
NORTH AMERICA
Loader cranes
Timber and recycling cranes
Tail lifts
Access platforms
Hooklifts
Truck mounted forklifts
Railway systems
CIS
Loader cranes
Timber and recycling cranes
Hooklifts
Railway systems
Mobile cranes
MARINE
MARINE
ASIA AND PACIFIC
MARINE
Loader cranes
Hooklifts
Railway systems
SOUTH AMERICA
Loader cranes
Timber and recycling cranes
Tail lifts
Hooklifts
Railway systems
MARINE
MARINE
3
ONGOING MARKET VOLATILITY
REVENUE, GROWTH AND VOLATILITY (HALF YEAR)
AREA UNITS from 2006 to 2014: + 385%
EUROPEAN UNITS from 2006 to 2014: + 62%
550
500
450
400
350
300
250
200
150
100
50
163.1m
377.0m
33.6m
232.5m
+ 61%
– 51%
+ 106%
0
-50
2006

2007
2008
2009
2010
2011
2012
2013
2014
Internationalization as basis for revenue growth
Flexibility as basis for profitability
Acc. to IFRS in EUR million.
4
HIGHLIGHTS Q1–Q3 (1)
Performance satisfactory in light of economic situation
» Internationalization proved its worth
» Growth boost in Marine business area
» Leading market position expanded further
Increase in revenue of 11% to EUR 795.1 million
EBIT declined by 0.6% to EUR 55.6 million
» Increases in sales in Europe in HY1, for the first time also in Southern Europe
» Decline in orders in Europe since the summer will affect EBIT for 2014,
dynamic development of non-European markets continued
» Increase of approx. 10% in the marine business
» AREA UNITS made up for weak Q1
5
HIGHLIGHTS Q1–Q3 (2)
Joint venture in China
» Sales development highly satisfactory
» Construction of new production plant near Shanghai about to be completed
» Start of operations in Q4 2014
» Cross shareholding with SANY completed
Expansion in Russia
» Acquisition of PM-Group concluded
» 2 joint ventures with KAMAZ
HIDRO-GRUBERT
» Minority shareholding in Argentinian manufacturer of access platforms
» Staff of 200, revenue in 2013: USD 16.1 million
Increasing flexibility and capital employed management
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STRATEGIC OBJECTIVES 2017
Growth, primarily in BRIC countries
Completion of product portfolio in all regions
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
 Revenue target 2017: approx. EUR 1.8 billion
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HIGHLIGHTS 2013
Growth in spite of difficult economic situation – another record year
» Positive development outside Europe and in the Marine business area
» Internationalization enabled consolidation of leading market position
» Slight upward trend in Europe in the second half of the year
Revenue increased by 4.9% to EUR 980.7 million
EBIT rose by 8.3% to EUR 74.1 million
» Declines in Europe
» Significant increases in the Marine business area
» Further increases in the AREA UNITS segment
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STRATEGIC HIGHLIGHTS 2013
Joint ventures with SANY
» Sany Palfinger: Positive sales development in China
» Palfinger Sany: Dealers and first sales in CIS
» Expansion of partnership planned
Palfinger Platforms Italy
» Joint venture opens up large market segment for access platforms (trucks of up to 3.5 tonnes)
Nimet Srl
» Interest in Romanian production company increased to 60%
» Creates necessary resources for the future
PALFINGER DREGGEN
» Offshore cranes have been expanding portfolio since acquisition in Q4 2012
» 2 orders totalling approx. EUR 90 million received
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STRATEGIC HIGHLIGHTS 2013 (2)
MCT ENG
» Takeover of the business of longstanding supplier in Korea
» Manufacturing capacities and know-how for marine and offshore cranes
Palfinger systems GmbH and Megarme Group
» Majority takeovers
» Innovative systems for accessing and performing work on ships and oil rigs;
service personnel
» First value-creation structures in the Arab region
PM-Group Lifting Machine (subject to official approvals)
» Takeover of the important Russian crane producer including its sales network
(PALFINGER/Steindl)
» Timber and recycling cranes for the entry-level segment
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STRATEGY
Innovation
Innovation
Internationalisation
Internationalisation
Diversification
Flexibility
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INNOVATION
… is the result of our passion for the continuous improvement
of products, processes, and organisation
… secures PALFINGER’s market leadership
… discovers new business segments, which enlarge the business area of
PALFINGER
Implementation:
»Organisation (GPS), manufacturing in Eastern countries
»Products (material, technologies)
»Processes from R&D to the customers and end customers (RAP)
»PALFINGER ProduktionsSystem (PPS)
»Quality
»Response time (terms of delivery)
»Employees
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INTERNATIONALISATION
… ensures that our customers in all five continents receive
products that conform to market standards
… guarantees PALFINGER a maximum of independence from regional business
fluctuations
… opens up new growth potentials for PALFINGER
… permits PALFINGER to optimise production and logistics costs
Implementation:
»International markets
»Local sourcing
»Increase of efficiency in the value-creation chain
»Cost optimisation
»Shortening of the supply chain
13
FLEXIBILITY
…allows PALFINGER to meet all market developments by quickly adjusting the
resources and capacities
…ensures business success in times of high volatility of markets (regions and
sectors)
…is viewed as a whole at PALFINGER according to the value chain
Implementation:
»Basis: New organisational structure since 2010
»Procurement: Master agreements with strategic suppliers
»Production: Order-based manufacturing, standardised parts
»Processes: Continuous flow manufacturing, self-controlling teams
»Human resources: Core personnel and temporary workers,
»flexible working time models
»Information services: Selective outsourcing
»Finances: Reduction in working capital
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MILESTONES
1932
Richard Palfinger
founded a repair
and mechanic’s
workshop.
1930
1940
1964
Specialisation in
hydraulic truckmounted loading
cranes.
1950
1960
1989
For the first time
export rate above 90
percent, presence in
more than 70
countries.
1970
1980
1999
IPO in June 1999.
1990
1992–2014
Continuous
diversification and
internationalisa-tion
with products at the
interfaces of the
transport chain.
2000
2010
FUTURE
PALFINGER will
further strengthen its
position as a
technology leader.
With innovative
products and
developments that set
benchmarks in the
areas of electronics,
hydraulics, raw
material, quality, and
service.
2020
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INNOVATION MILESTONES
Accredited innovations as a result of intensive research and development:
» 2000
» 2001
» 2002
»
»
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»
2005
2006
2007
2008
2010
2010
2011
2012
RAP Rapid Process (order-related production)
PowerLink Plus (backwards folding outer boom)
„Paltronic“ with e.g. electronic load-limiting device
KTL Cathodic dip painting
„Interlock System“ locking mechanism for manually extendable outriggers
DPS – Dual Power System for increasing lifting capacity on fly-jibs
ISC – Integrated Stability Control for monitoring the stability of a crane vehicle
3.5-tonne access platforms as light weight construction
PA115 Railway platforms for vehicles for road and rail
Full-electric tail lifts „e-Drive“
SH-series
HPSC (High Performance Stability Control)
SIL-2 Mechatronic development standard
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INTERNATIONALISATION MILESTONES *
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1989 Canada/Niagara Falls
1992 Germany/Ainring
1993 Slovenia/Marbibor
1996 Italy/Cadelbosco
1997 and 1999 France/Chaponnay and Caussade
2000 USA/Ohio and Bulgaria/Cherven Brjag
2001 Brasil/Caxias do Sul
2004 Germany/Löbau
2005 Great Britain/Welwyn Garden City
2006 China/Shenzhen, Singapur/Singapur
2007 Croatia/Delnice, Germany/Ganderkesee
2008 Germany/Krefeld, USA/Council Bluffs
2009 USA/Trenton
2010 USA/Oklahoma City, Netherlands/Barneveld, Vietnam and India
2011 Russia/Ischimbai
2012 China/Changsha, Norway/Bergen
2013 Italy/Bolzano, Korea/Sacheon, United Arab Emirates/Dubai/Abu Dhabi and Katar
2014 Argentinien/Río Tercero, Russia/Arkhangelsk/Velikiye Luki
* Value creation
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PRODUCT DIVERSIFICATION MILESTONES
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1959 CRANES truck-mounted knuckle boom cranes
1980 BRIDGE INSPECTION units
1988 EPSILON timber and recycling cranes
1991 STEPA farm cranes
1992 RAILWAY rail transport system solutions
1996 PALIFT hook loaders
1997 PEC PALFINGER equipment centre
1998 CRAYLER transportable forklifts
2001 PALGATE tail lifts
2001 Madal telescopic cranes
2004 BISON access platforms
2005 RATCLIFF tail lifts and passenger lifts
2006 EPSILON off-road cranes
2007 MBB tail lifts
2008 WUMAG ELEVANT truck-mounted access platforms
2008 Omaha Standard truck bodies & pick-up tail lifts
2009 Automated Waste cable hoists and hook loaders
2010 ETI truck-mounted aerial lifts, NDM davit systems, PALFINGER marine cranes and offshore-windmill cranes
2011 Stiff boom cranes
2012 Dreggen Offshore and marine cranes
2013 Sky Aces access platforms, Palfinger systems accessing systems, Megarme Gruppe rope access professionals
2014 HIBDRO-GRUBERT access platforms, hydraulic knuckle-boom cranes and truck bodies , PM-Group Lifting
Machines timber and recycling cranes
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INTERNATIONALIZATION (1)
STRATEGIC TARGET 2017
approx. EUR 1.8 billion
ASIA AND PACIFIC
CIS
EMEA
⅓
REVENUE Q1–Q3 2014
EUR 795.1 million
ASIA AND PACIFIC
CIS
14.8%
⅓
AMERICAS
25.1%
60.1%
⅓
AMERICAS
EMEA
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INTERNATIONALIZATION (2)
REVENUE 2009
3.2% 2.1%
REST OF EUROPE AFRICA AND
MIDDLE EAST
CIS 0.4%
FAR EAST 3.5%
7.0%
CENTRAL AND
SOUTH AMERICA
REVENUE Q1–Q3 2014
4.8%
REST OF EUROPE
3.9%
AFRICA AND
MIDDLE EAST
CIS 4.4%
10.4%
FAR EAST
5.9%
CENTRAL AND
SOUTH AMERICA
12.3%
NORTH AMERICA
71.7%
EUROPEAN UNION
Minor rounding differences may occur.
19.3%
NORTH AMERICA
51.3%
EUROPEAN UNION
20
GLOBAL SALES NETWORK
Over 200 independent dealers worldwide and
28 distribution subsidiaries in more than 130 countries
Roughly 5,000 service and sales centres
21
SALES STRUCTURE
Distribution
Own sales organisation
Independent sales organisation
28 PALFINGER
sales subsidiaries
Sub-dealers
dealer
workshops*
200 independent
dealers
5,000 sales
and service
partners in
200 countries
Sub-dealers
dealer
workshops*
» Direct market access
» Comprehensive market
overview
* Sales and service partners
Advantages
Advantages
End customers
» Less fixed costs
» High flexibility
» Broad coverage
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36 PRODUCTION SITES
Lengau/AUT
Köstendorf/AUT
Elsbethen/AUT
Weng/AUT
Löbau/GER
Ganderkesee/GER
Krefeld/GER
Barneveld/NED
Harderwijk/NED
W. Garden City/GBR
Cadelbosco/ITA
Modena/ITA
Caussade/FRA
Marburg/SLO
Delnice/CRO
Lazuri/ROU
Tenevo/BUL
Cherven Brjag/BUL
Gdynia/POL
Ischimbai/RUS
Velikiye Luki/RUS
Arkhangelsk/RUS
Niagara Falls/CAN
Tiffin/USA
Council Bluffs/USA
Cerritos/USA
Trenton/USA
Oklahoma City/USA
Caxias do Sul/BRA
Cachoeirinha/BRA
Rio Tercero/ARG
Shenzhen/CHN
Ninxiang/CHN
Hanoi/VIE
Chennai/IND
Sacheon-si/KOR
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PRODUCT PORTFOLIO
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Loader Cranes
EPSILON Timber and Recycling Cranes
Stiff Boom Cranes
Marine Cranes
Offshore and Marine Cranes
Launch & Recovery Systems
Wind Cranes
Boats
Hooklifts
Access Platforms
Tail Lifts
Truck Mounted Forklifts
Railway Systems
Truck Bodies
Palfinger systems
Rope Access Professionals
PALFINGER Equipment
PALFINGER Services
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KEY FIGURES
Q1–Q3 2012 Q1–Q3 2013 Q1–Q3 2014
%
Revenue
688.2
716.1
795.1
+ 11.0%
EBITDA
74.4
79.3
81.7
+ 3.0%
10.8%
11.1%
10.3
–
52.0
56.0
55.6
(0.7%)
7.5%
7.8%
7.0%
–
Result before income tax
43.9
46.3
47.9
+ 3.5%
Consolidated net result for the period
31.7
34.3
32.4
(5.5%)
EBITDA margin
EBIT
EBIT margin
Acc. to IFRS in EUR million.
Minor rounding differences may occur.
25
QUARTERLY FIGURES
Revenue
EBIT
300
250
210
222
224
241
249
247
226
223
265
268
273
241
50
255
40
200
30
150
100
17.7
19.5
18.1
16.5
15.5
Q3/11
Q4/11
Q1/12
Q2/12
Q3/12
Q4/12
Q1/13
7.8%
7.0%
7.9%
8.1%
6.6%
6.7%
8.0%
50
14.8
16.5
20
21.1
20.1
20.9
16.9
18.1
Q2/13
Q3/13
Q4/13
Q1/14
Q2/14
Q3/14
8.4%
7.0%
6.8%
7.5%
7.7%
5.7%
14.6
0
EBIT
margin
10
0
 Continuation of growth in revenue
Acc. to IFRS in EUR million.
Minor rounding differences may occur.
26
INVESTMENTS
Net investments
Depreciation, amortization and impairment
59.1*
60
50
40
34.6
28.1
30
16.7
20
10
17.1
21.1
22.5
23.3
26.0
9.2
0
Q1–Q3 2010
Q1–Q3 2011
Q1–Q3 2012
Q1–Q3 2013
Q1–Q3 2014
* Adjusted by acquisition of interest in SANY,
total: EUR169,089 thousand
Acc. to IFRS in EUR million.
Minor rounding differences may occur.
27
MANAGEMENT
From left to right:
Wolfgang Pilz
CMO
Christoph Kaml
CFO
Herbert Ortner
CEO
Martin Zehnder, MBA
COO
28
SUPERVISORY BOARD
Hubert Palfinger (since 10.12.2013)
Chairman of the Supervisory Board
Hannes Palfinger
Deputy Chairman of the
Supervisory Board
Additional members of the
Supervisory Board
» Jian Qi
» Heinrich Kiener
» Wolfgang Anzengruber
» Peter Pessenlehner
» Johann Mair
» Gerhard Gruber
» Alois Weiss
29
PAYROLL 2013
In the 2013 financial year, the number of persons employed by the PALFINGER Group once again rose
as a result of PALFINGER’s continued growth. As at 31 December 2013, the PALFINGER Group employed
a total of 6,874 staff members in its 55 fully consolidated Group companies. This means that 596 additional
jobs were created, which corresponds to an increase of approx. 9 per cent compared to 2012.
In the course of the expansion and
reinforcement of business operations
through acquisitions,
PALFINGER has paid great attention to
retaining employees with the Company
and to creating new jobs. Consequently,
the acquisitions have contributed to an
increase in the headcount.
1) Headcounts as at 31 Dec. The number of employees rose in almost all regions.
2) Temporary workers expressed as FTEs, not as headcounts. (One FTE counts as one employee.)
They are presented irrespective of the date on which the site hiring them was founded.
30
PALFINGER SHARES
SHAREHOLDER STRUCTURE
10%
SANY Group
1%
PALFINGER AG
30%
free float
SHAREHOLDER INFORMATION AS
AT 30 SEPT 2014
ISIN
AT0000758305
Number of shares
thereof own shares
37,593,258
291,968
Share price
as at end of period
EUR 25.00
Market capitalization
Earnings per share
EUR 939.8m
EUR 0.89
59%
Palfinger family
31
PERFORMANCE OF PALFINGER SHARES SINCE 2013
200
180
160
140
120
DAX
100
PALFINGER AG
18.60 EUR
ATX
80
2 Jan 2013
2 Jan 2014
31 Oct 2014
32
SUSTAINABILITY
Continuous improvement of products, manufacturing methods, processes, and
systems concerning quality, costs and environmental compatibility
Integration of social, economical and ecological aspects in the strategic planning
process
Long-term sustainable relationships with employees, customers, and partners
Sustainability Report 2003/04 followed the Sustainability Reporting Guidelines 2002
of the Global Reporting Initiative (GRI)
Sustainability Report 2005 – Acting today for tomorrow – as a comprehensive
international appraisal providing deeper insight into production and products
Sustainability Report 2006/07 – Our hands-on approach – with a greater focus on
employee topics
Sustainability Report 2008/09 – The people behind the machines – achieved
the 1. place at the AAA trend Award
33
CONTACT INFORMATION
Hannes Roither
Company Spokesperson
Tel.: +43 662 46 84-82260
h.roither@palfinger.com
PALFINGER AG
F.-W.-Scherer-Straße 24
5020 Salzburg
Fax: +43 662 46 84-82280
34