PUBLICATION OF RESULTS
Q1-Q3 / 2020
Bergheim, October 30, 2020
ANDREAS KLAUSER | 2 |
CEO
20-10-30 PALFINGER Publication of Results Q1-Q3/2020
Q3/2020 at a glance
MARKET FURTHER STABILIZED SINCE SUMMER: STILL HIGH VOLATILITY
Q3 EBIT MARGIN OF 8.5 %
COVID-19 HAS HUGE IMPACT
THANKS TO FULL ORDER BOOKS OPTIMISTIC OUTLOOK BEYOND 2021
2020
Q1 - Q33
1ST PHASE OF CRISIS: HANDLED WELL
20-10-30 PALFINGER Publication of Results Q1-Q3/2020
PALFINGER at a glance
PALFINGER: GLOBALLY WELL POSITIONED
GROUP 2019 | ||
REVENUE | EUR 1.75 billion | |
4 | ||
EMPLOYEES | 11,126 | |
33 production sites & SITES around 5,000 service
centers worldwide
61% EMEA
REVENUE 23% NAM SPLIT 5% LATAM
12% APAC, CIS
20-10-30 PALFINGER Publication of Results Q1-Q3/2020
Knowing our customers shapes our actions
CRISIS-RESISTANT THANKS TO SECTOR DIVERSITY
Construction | Industry | Railway | Offshore Wind | Aquaculture & Fishing | ||||||||||||
Forestry & Agriculture | Transport & Logistics | Waste Mgmt. & Recycling | Passenger | Commercial |
5
Infrastructure | Public Sector | Offshore Supply & Oil and Gas | |||||||||
20-10-30 PALFINGER Publication of Results Q1-Q3/2020
Technology as a driving force
INNOVATIVE AND POWERFUL PRODUCT PORTFOLIO
LOADER | TIMBER & | HOOKLIFTS AND | TAIL | TURNKEY | MARINE | OFFSHORE | WINCHES |
RECYCLING | |||||||
CRANES | SKIP LOADERS | LIFTS | SOLUTIONS | CRANES | CRANES | ||
CRANES | |||||||
6
PASSENGER | ACCESS | TRUCK MOUNTED | BRIDGE | RAILWAY | WIND | DAVITS | BOATS |
INSPECTION | |||||||
SYSTEMS | PLATFORMS | FORKLIFTS | SYSTEMS | CRANES | |||
& MAINTENANCE | |||||||
20-10-30 PALFINGER Publication of Results Q1-Q3/2020
We are investing in our future, especially during the crisis
P21st CHALLENGE ACCEPTED:
WITH OUR CORPORATE INCUBATOR, WE ARE SHAPING THE FUTURE.
P21st | STRUCINSPECT |
7
NATIONAL PRIZE FOR DIGITALIZATION 2020
DIGITAL IMPULS AWARD 2020
20-10-30 PALFINGER Publication of Results Q1-Q3/2020
Corporate responsibility
LONG-TERM COMPETITIVENESS THROUGH
SUSTAINABLE ACTIONS
- Materiality analysis is being finalized, KPIs and measures in preparation
- New climate strategy in preparation
Responsible Employer | Eco-Efficient Production | ||
▪ Focus on HSE | ▪ 42% CO2 reduction compared | ||
▪ Start of the PALFINGER | to 2015 (-16% CO2 YTD 2020) | 8 | |
Campus | ▪ 74% of power from renewable | ||
energy sources | |||
Sustainable Products | Fair Business | ||
▪ Intensification of ACE | ▪ Deeper integration of | ||
(autonomous, connected, | sustainability risks in risk | ||
electrification) | management | ||
20-10-30 PALFINGER Publication of Results Q1-Q3/2020
Operational highlights
COVID-19 TASK FORCE REACTED QUICKLY & EXTENSIVELY
FOCUS, COOPERATION AND PROACTIVE MANAGEMENT
AS SUCCESSFUL CORE ELEMENTS
01
02
03
04
COVID Task Force implemented at end of February 2020: completed 220 actions in 3 work packages: 1. Health & Safety / HR / Communication, 2. Production & Operations Management, 3. Liquidity Optimization.
9
Scrutinized all projects and implemented comprehensive program to optimize liquidity and cut costs.
Labor costs cut through implementation of short-timework models for all Austrian employees. Various models and support programs adopted where available for sites abroad.
Actions taken to ensure employee health, safety and well-being.
20-10-30 PALFINGER Publication of Results Q1-Q3/2020
General conditions for PALFINGER
OPERATIONAL HIGHLIGHTS Q1-Q3/2020
COVID-19has a huge impact.
Visible recovery during summer period in EUROPE, CIS, CHINA and LATAM, but still high volatility.
10
Order book similar to end of 2019 level.
Restructuring of SEA segment completed, full integration into GPO.
SAP S/4 HANA go live in EMEA distribution center on April 01, 2020.
20-10-30 PALFINGER Publication of Results Q1-Q3/2020
FELIX STROHBICHLER | 11 |
CFO
20-10-30 PALFINGER Publication of Results Q1-Q3/2020
SEGMENT | 12 |
SALES & SERVICE
20-10-30 PALFINGER Publication of Results Q1-Q3/2020
Sales & Service Segment
POSITIVE TREND IN Q3
01
02
03
04
Effects of COVID-19 crisis felt across all product lines.
Drop in earnings reduced by short-time work and cost-cutting measures. | 13 |
Sales and service activities of the former SEA segment included.
Market recovery (EUROPE, CIS, CHINA, LATAM) visible in Q3 results.
20-10-30 PALFINGER Publication of Results Q1-Q3/2020
Sales & Service Segment
EBIT MARGIN REDUCED DUE TO LOWER REVENUE
EUR million | Q1-Q3/20191) | Q1-Q3/2020 | Δ% | ||
External revenue | 1,211.1 | 1,033.8 | -14.6% | ||
EBITDA | 134.6 | 118.9 | -11.7% | 14 | |
EBIT | 110.9 | 80.0 | -27.9% | ||
EBIT margin | 9.2% | 7.7% | - | ||
1) Figures adjusted retroactively to the new segment reporting structure.
20-10-30 PALFINGER Publication of Results Q1-Q3/2020
SEGMENT | 15 |
OPERATIONS
20-10-30 PALFINGER Publication of Results Q1-Q3/2020
OPERATIONS Segment
Q1-Q3/2020 HEAVILY IMPACTED BY COVID-19
01 | Lower capacity utilization in Q2 due to lockdowns, market environment and COVID crisis |
health-measure compliance. | |
02 | Lockdown used to create work environments best suited to safeguarding health, |
safety and well-being. |
03
04
05
COVID-19 Task Force took prompt and efficient actions to maintain internal and
external supply chains.
COVID-19 negatively impacts on 3rd-party manufacturing.
Increasing utilization in manufacturing plants due to high order levels in Q3.
16
20-10-30 PALFINGER Publication of Results Q1-Q3/2020
OPERATIONS Segment
LOWER CAPACITY UTILIZATION AND LESS
MANUFACTURING FOR THIRD PARTIES
EUR million | Q1-Q3/20191) | Q1-Q3/2020 | Δ% | ||
External revenue | 89.6 | 68.7 | -23.3% | 17 | |
EBITDA | 56.5 | 34.8 | -38.4% | ||
EBIT | 28.5 | 8.9 | -68.8% | ||
1) Figures adjusted retroactively to the new segment reporting structure.
20-10-30 PALFINGER Publication of Results Q1-Q3/2020
HOLDING | 18 |
UNIT
20-10-30 PALFINGER Publication of Results Q1-Q3/2020
HOLDING Unit
SHORT-TIME WORK AND PROJECT PRIORITISATION
REDUCE HOLDING COSTS
EUR million | Q1-Q3/2019 | Q1-Q3/2020 | Δ% | ||
19 | |||||
EBITDA | -16.0 | -13.4 | 16.2% | ||
EBIT | -20.1 | -18.3 | 9.2% | ||
20-10-30 PALFINGER Publication of Results Q1-Q3/2020
PALFINGER | 20 |
GROUP
20-10-30 PALFINGER Publication of Results Q1-Q3/2020
PALFINGER Group
PROFITABILITY IN Q3 ON HIGH LEVEL:
EBIT OF EUR 31.8 MILLION
EUR million | Q1-Q3/2019 | Q1-Q3/2020 | Δ% | |||
Revenue | 1,300.6 | 1,102.4 | -15.2% | |||
EBITDA | 175.1 | 140.3 | -19.9% | |||
EBITDA margin | 13.5% | 12.7% | - | 21 | ||
EBIT (operating income) | 119.3 | 70.6 | -40.8% | |||
EBIT margin | 9.2% | 6.4% | - | |||
EBT (result before income tax) | 107.1 | 58.5 | -45.4% | |||
Net income | 63.6 | 31.8 | -50.0% | |||
In accordance with IFRS, minor rounding differences are possible.
20-10-30 PALFINGER Publication of Results Q1-Q3/2020
PALFINGER Group
LOWER NET INVESTMENT DURING CRISIS
50 | 69.0 | ||||||||||||||||||||||||
45 | |||||||||||||||||||||||||
66.2 | 1) | 55.8 | |||||||||||||||||||||||
40 | |||||||||||||||||||||||||
52.2 | |||||||||||||||||||||||||
35 | 45.9 | ||||||||||||||||||||||||
48.5 | |||||||||||||||||||||||||
42.3 | |||||||||||||||||||||||||
30 | |||||||||||||||||||||||||
25 | 35.0 | ||||||||||||||||||||||||
20
15
10
5
0
Q1-Q3/2016 | Q1-Q3/2017 | Q1-Q3/2018 | Q1-Q3/2019 |
Net investment
Depreciation, amortization and impairment
- Includes additions from leases (IFRS 16); excluding divestment of 2.5% of Sany Lifting Solutions (EUR 28.6 million). In accordance with IFRS, minor rounding differences are possible.
69.7
46.9
22
Q1-Q3/2020
20-10-30 PALFINGER Publication of Results Q1-Q3/2020
PALFINGER Group
LIQUIDITY RESERVES SUBSTANTIALLY INCREASED -
LOWEST NET FINANCIAL DEBT (NFD) SINCE Q1/2016
EUR million | Sept 30, | Sept 30, | |
2019 | 2020 | ||
Financial liabilities 1) | 633.1 | 546.1 | |
Ø interest on financial liabilities | 1.62% | 1.38% | 23 |
Ø maturity of financial liabilities | 4.40 years | 4.06 years | |
Cash equivalents | 33.2 | 62.2 | |
Net debt | 576.9 | 459.0 | |
Equity | 618.9 | 606.7 | |
- Including EUR 54.7 million leasing liabilities according to IFRS 16 (09/2019: EUR 59.7 million)
- Excluding foreign currency hedging costs.
In accordance with IFRS, minor rounding differences are possible.
20-10-30 PALFINGER Publication of Results Q1-Q3/2020
PALFINGER Group
STRENGTHENED BALANCE SHEET DESPITE CRISIS
Sept 30, | Sept 30, | |||
2019 | 2020 | |||
Equity ratio | 37.1% | 39.0% | 24 | |
Gearing | 93.2% | 75.6% | ||
Net debt/EBITDA | 2.57 | 2.43 | ||
In accordance with IFRS, minor rounding differences are possible.
20-10-30 PALFINGER Publication of Results Q1-Q3/2020
PALFINGER Group
HIGH FREE CASH FLOW -
OPTIMIZED INVENTORY AND RECEIVABLES
EUR million | Q1-Q3/2019 | Q1-Q3/2020 | |||
EBTDA | 163.0 | 128.2 | |||
+/- non-cash income from at-equity companies | -11.9 | -4.7 | |||
+/- change in working capital | -37.1 | 16.1 | |||
+/- cash flow from tax payments | -32.5 | -6.8 | 25 | ||
Cash flow from operating activities | 81.5 | 132.8 | |||
+/- cash flow from investing activities | -33.2 | -42.9 | |||
Cash flow after changes in working capital and investments | 48.3 | 89.9 | |||
+/- cash flow from interest on borrowings adjusted for tax expenditure | 7.8 | 6.4 | |||
Free cash flow | 56.1 | 96.3 | |||
In accordance with IFRS, minor rounding differences are possible.
20-10-30 PALFINGER Publication of Results Q1-Q3/2020
ANDREAS KLAUSER | 26 |
CEO
20-10-30 PALFINGER Publication of Results Q1-Q3/2020
OUTLOOK 2020
Noticeable stabilisation of markets, US market slowing down but still above average volume while CIS & China trending positively
Revenue target for 2020 above EUR 1.5 billion
EBIT target for 2020 EUR 100 million
27
Risks from COVID-19 hard to predict -
depends greatly on infection curve development
Key focus:
- Maintaining the health, safety and well-beingof employees
- Keeping our operations up and running
20-10-30 / PALFINGER Publication of Results Q1-Q3/2020
Financial targets 2024
FINANCIAL TARGETS REMAINING THE SAME,
BUT POSTPONED 2 YEARS
FINANCIAL TARGETS 2024 | #1 28 | |||||
MARKET LEADER IN CRANE AND LIFTING SOLUTIONS | ||||||
EUR 2 billion | 10% | 10% | ||||
revenue from organic growth | average EBIT margin over the | average ROCE over the | ||||
economic cycle | economic cycle | |||||
20-10-30 PALFINGER Publication of Results Q1-Q3/2020
STAY HEALTHY!
INVESTOR RELATIONS AND PRESS CONTACT
ANDREAS KLAUSER | FELIX STROHBICHLER | HANNES ROITHER | |||||
CEO | CFO | Company Spokesperson | |||||
+43 662 2281-81008 | +43 662 2281-81006 | +43 662 2281-81100 | |||||
a.klauser@palfinger.com | f.strohbichler@palfinger.com | h.roither@palfinger.com |
PALFINGER AG Lamprechtshausener Bundesstraße 8 5101 Bergheim www.palfinger.ag
This report contains forecasts based on all currently-available information. All figures are therefore subject to change.
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Palfinger AG published this content on 30 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 October 2020 10:34:05 UTC