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

  1. 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

  1. Including EUR 54.7 million leasing liabilities according to IFRS 16 (09/2019: EUR 59.7 million)
  2. 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