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PALFINGER AG Presentation on the first three quarters of 2013 November 2013

Palfinger Q3 Presentation

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Page 1: Palfinger Q3 Presentation

PALFINGER AG

Presentation on the first three quarters of 2013

November 2013

Page 2: Palfinger Q3 Presentation

-50

50100150200250300350400450500

ONGOING MARKET VOLATILITY

Flexibility and internationality as bases for success

2Acc. to IFRS in EUR million.

REVENUE (HALF YEAR)AREA UNITSEUROPEAN UNITS

2005 2006 2007 2008 2009 2010 2011

0

2012 2013

Page 3: Palfinger Q3 Presentation

HIGHLIGHTS Q1–Q3

Growth in spite of difficult economic situation» Positive development outside Europe and in the Marine business area» Internationalization enabled consolidation of leading market position » Moderate upward trend in Europe in Q3

Revenue increased by 4.0% to EUR 716.1 million

EBIT raised by 7.8% to EUR 56.0 million» Declines in Europe» Significant increases in the AREA UNITS segment and in the Marine business area

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Page 4: Palfinger Q3 Presentation

STRATEGY

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Page 5: Palfinger Q3 Presentation

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 (30 manufacturing and assembly locations)

Strategic pillars: innovation – internationalization – flexibility

Maintaining and expanding the Group’s competitive advantage

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Page 6: Palfinger Q3 Presentation

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

6

Revenue target 2017: approx. EUR 1.8 billion

Page 7: Palfinger Q3 Presentation

STRATEGIC HIGHLIGHTS 2013

Joint Ventures with SANY» Sany Palfinger: positive sales development in China» Palfinger Sany: dealers and first sales in CIS

PALFINGER DREGGEN» Offshore cranes have been expanding portfolio since acquisition in Q4 2012» 2 orders totalling approx. EUR 90 million received

MCT ENG» Takeover of operations of this longstanding supplier» Manufacturing capacities and know-how for marine and offshore cranes

Palfinger Platforms Italy» Joint venture opens up large market segment for access platforms (trucks of up to 3.5 tonnes)

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Page 8: Palfinger Q3 Presentation

PARTNERSHIP WITH THE SANY GROUP, CHINA

SANY is the largest heavy equipment manufacturer in China

2 joint ventures started operations approx. one year ago

Expansion of partnership planned through mutual shareholdings» Economic interests of 10% each» PALFINGER AG:

One half: new shares (from authorized capital)Other half: existing shares from the Palfinger familyPrice: EUR 29 per share

» Structure planned to be reflected in supervisory bodies » Contract documentation and required approvals still outstanding

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Page 9: Palfinger Q3 Presentation

INTERNATIONALIZATION

REVENUE Q1–Q3 2012

66.9% EUROPEAN UNITS

REVENUE Q1–Q3 2013

33.1% AREA UNITS

9

67.3% EUROPEAN UNITS

32.7% AREA UNITS

Page 10: Palfinger Q3 Presentation

SEGMENTS

10

Page 11: Palfinger Q3 Presentation

SEGMENT FINANCIALS

SEGMENT REVENUEQ1–Q3 2012 Q1–Q3 2013 %

EUROPEAN UNITS 463.0 479.2 + 3.5%AREA UNITS 225.3 236.9 + 5.2%

VENTURES – – –

SEGMENT EBITQ1–Q3 2012 Q1–Q3 2013 %

EUROPEAN UNITS 58.1 62.3 + 7.1%AREA UNITS 6.2 7.3 + 17.6%

VENTURES (10.8) (13.2) (22.8%)

11Acc. to IFRS in EUR million. Minor rounding differences may occur.

Page 12: Palfinger Q3 Presentation

EUROPEAN UNITS SEGMENT

Economic environment remains difficult in Europe» Business units Access Platforms, Railway Systems and Production posted increases » Strategic measures supported further development» Other business units recorded declines in revenue

Global Marine business area compensates declines in Europe » Offshore cranes (PALFINGER DREGGEN) since December 2012» 2 large-scale orders in Q1

Almost all business units with positive result despite declining revenue

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Page 13: Palfinger Q3 Presentation

Revenue increased in all areas» Positive trend in North America continues» South America as a growth market; also due to additional product groups» Asia recorded substantial increases, still at a low level» Weak environment noticeable in India» Capacity expansion in CIS planned to support further growth

EBIT increased by 17.6% to EUR 7.3 million

AREA UNITS SEGMENT

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Page 14: Palfinger Q3 Presentation

VENTURES UNIT

Focus on further internationalization» Development of the regions South America and Russia and the Marine business area» Potential acquisitions and partnerships

Continuation of cost-related and structural programmes

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Page 15: Palfinger Q3 Presentation

KEY FINANCIALS

15

Page 16: Palfinger Q3 Presentation

FINANCIAL HIGHLIGHTS

Q1–Q3 2011 Q1–Q3 2012 Q1–Q3 2013 %

Revenue 624.0 688.2 716.1 + 4.0%

EBITDA 73.5 74.4 79.3 + 6.6%

EBITDA margin 11.8% 10.8% 11.1% –

EBIT 52.4 52.0 56.0 + 7.8%

EBIT margin 8.4% 7.5% 7.8% –

Result before income tax 43.3 43.9 46.3 + 5.4%

Consolidated net result for the period 32.7 31.7 34.3 + 8.0%

16Acc. to IFRS in EUR million. Minor rounding differences may occur.

Page 17: Palfinger Q3 Presentation

QUARTERLY FIGURES

Steady upward trend with record revenue

EBITmargin 5.4% 7.2% 7.9% 9.4% 7.8% 7.0% 7.9% 8.1% 6.6% 6.7% 8.0% 8.4% 7.0%

168187 192

223210 222 224

241223

247226

249 241

16.5 15.5 17.7 19.514.8 16.5 18.1

21.116.9

20.915.113.5

9.10

50

100

150

200

250

Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/130

10

20

30

40

50

Revenue EBIT

17Acc. to IFRS in EUR million. Minor rounding differences may occur.

Page 18: Palfinger Q3 Presentation

CAPITAL EMPLOYED*

* Average.

306 323 378 392 422

158 133118 149

182

0

100

200

300

400

500

600

Q1–Q3 2009 Q1–Q3 2010 Q1–Q3 2011 Q1–Q3 2012 Q1–Q3 2013

Net Working Capital (as percentage of revenue)

Non-current operating assets

(27%) (16%)(15%) (16%)

464 456542

496

18Acc. to IFRS in EUR million. Minor rounding differences may occur.

604

(19%)

Increase through expansion of business volume, net working capital as percentage of revenue at low level

Page 19: Palfinger Q3 Presentation

INVESTMENTS

10.4 9.2

17.1

34.6

28.1

16.2 16.721.1 22.5 23.3

0

10

20

30

40

Q1–Q3 2009 Q1–Q3 2010 Q1–Q3 2011 Q1–Q3 2012 Q1–Q3 2013

Net investments

Depreciation, amortization and impairment

19Acc. to IFRS in EUR million. Minor rounding differences may occur.

Page 20: Palfinger Q3 Presentation

GEARING RATIO AND EQUITY

339.5367.1

187.9

169.8

243.2

152.4161.5

286.9

381.2315.8

63.8%

51.2%48.2% 50.0%

56.3%

050

100150200250300350400450

Q1–Q3 2009 Q1–Q3 2010 Q1–Q3 2011 Q1–Q3 2012 Q1–Q3 20130%

25%

50%

75%

100%

Net debt Equity Gearing %

20Acc. to IFRS in EUR million. Minor rounding differences may occur.

Promissory note loan (Q4 2012) invested into growth

Page 21: Palfinger Q3 Presentation

FREE CASH FLOWS

Q1–Q3 2011 Q1–Q3 2012 Q1–Q3 2013

EBTDA 64.3 66.4 69.6+/– Non-cash result from companies at equity (0.3) (2.2) (6.8)+/– Change in working capital (24.9) (23.7) (28.7)+/– Cash flows from tax payments (8.4) (9.5) (5.0)Cash flows from operating activities 30.7 31.0 29.1+/– Cash flows from investing activities (33.8) (36.6) (28.7)Cash flows after changes in working capital & investments (3.1) (5.6) 0.4

+/– Cash flows from interest on borrowings adjusted by tax expense 6.6 5.6 6.6

Free cash flows 3.5 0.0 7.0Cash flows from equity/investor capital (11.6) (22.2) (19.3)Cash flows from net debt 14.7 27.8 18.9

21Acc. to IFRS in EUR million. Minor rounding differences may occur.

Page 22: Palfinger Q3 Presentation

OUTLOOK

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Page 23: Palfinger Q3 Presentation

OUTLOOK AND OBJECTIVES – INTERNALLY

Internationalization strategy to be continued» Focus on Brazil, Russia, Marine business area

Further development of the partnership with SANY

Growth potential in Marine business area

Further increase in flexibility» Processes in production and administration» Reducing complexity, also in global organizational structure

Alignment of production structures: global–local

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Target: higher contributions to earnings

Page 24: Palfinger Q3 Presentation

OUTLOOK AND OBJECTIVES – EXTERNALLY

Economic situation in Europe remains marked by uncertainty

Growth expected in regions outside Europe

Limited visibility, but positive trends noticeable

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Slight revenue growth expected for 2013

Page 25: Palfinger Q3 Presentation

INVESTOR RELATIONS

Herbert Ortner, CEOTel. +43 662 46 [email protected]

Hannes Roither, Company SpokespersonPhone +43 662 46 84-2260

[email protected]

PALFINGER AGFranz-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 ofpreparation of this presentation. Actual outcomes and results may be different from those predicted.

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Page 26: Palfinger Q3 Presentation

BACK UP

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Page 27: Palfinger Q3 Presentation

BALANCE SHEET STRUCTURE

367 381

216 253208 225

0

200

400

600

800

1000

Q3 2012 Q3 2013

Current liabilitiesNon-current liabilitiesEquity

405 431

386 429

0

200

400

600

800

1000

Q3 2012 Q3 2013

Current Assets

Non-current Assets

860

ASSETS LIABILITIES

860791 791

27Acc. to IFRS in EUR million. Minor rounding differences may occur.

Long-term financial structure,2012 promissory note loan issued

Page 28: Palfinger Q3 Presentation

FINANCING STRUCTURE AS AT 30 SEPTEMBER 2013

Ø Interest rate 3.04%

Ø Remaining time to maturity 2.52 years

Financial assets EUR 13.4m

Equity ratio 44.4%50

22

185

0

50

100

150

200

2013 2014 after 2014

28Acc. to IFRS in EUR million. Minor rounding differences may occur.

Maturity

Page 29: Palfinger Q3 Presentation

PALFINGER SHARES

29

ISIN AT0000758305

Number of sharesthereof own shares

35,730,000328,090

Share price as at end of period EUR 28.90

Market capitalization EUR 1,032.6m

Earnings per share EUR 0.97

65%Palfinger family

34%free float

1% PALFINGER AG

SHAREHOLDER STRUCTURE SHAREHOLDER INFORMATION AS AT 30 SEPTEMBER 2013

Page 30: Palfinger Q3 Presentation

80

100

120

140

160

180

200

220

240

PERFORMANCE OF PALFINGER SHARES SINCE 2012

2 Jan 2012 31 Oct 2013

PALFINGER AGEUR 27.20

ATX

DAX

30

2 Jan 2013

Page 31: Palfinger Q3 Presentation

RESEARCH REPORTS

31

Berenberg Bank HSBC

Deutsche Bank Kepler Cheuvreux

Erste Group RCB

Goldman Sachs UBS

Hauck & Aufhäuser

Earnings Estimates – consensus (EUR million) 2013e 2014e

Revenue 992.6 1,091.3EBIT 76.1 98.6

Earnings per share (EUR) 1.35 1.73

Page 32: Palfinger Q3 Presentation

FINANCIAL CALENDAR 2013/2014

32

17 February 2014 Balance sheet press conference

12 March 2014 Annual General Meeting

14 March 2014 Ex-dividend day

18 March 2014 Dividend payment day

7 May 2014 Publication of results for the first quarter of 2014

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