Template for HA Research Notes - Palfinger

Palfinger AG
Austria - Engineering
Buy (old: Buy)
27-June-12
Price target: EUR 26.00 (old: EUR 26.00)
Torben Teichler
Analyst
Price: EUR 17.51 Next result: Q2 09.08.12
Bloomberg: PAL AV Market cap: EUR 635.5 m torben.teichler@ha-research.de
Reuters: PALF.VI Enterprise Value: EUR 830.9 m Tel.: +49 40 414 3885 74
Europe stable, Americas as well as Russia drive growth
European Market: Despite a strong exposure to the European market (~70% of
sales), Palfinger currently faces a largely stable market environment; foremost
as a result of a 25% sales share in Germany where a sound housing market on cheap
financing is supporting demand for Palfinger’s products. Other large markets are
France and Scandinavia accounting for 10% and 8% of sales respectively which both
remain at sound levels. Generally exposure to Southern Europe is marginal with an
estimated 3% of sales in Spain, Italy and Portugal. Eastern Europe contributes 5%
of sales and remains largely stable while Russia, 4% of sales, is growing at low
double digit rates given Palfinger’s improved presence in the region after the INMAN
acquisition.
North America, accounting for 18% of sales, continues to grow at double digit
rates and is primarily driven by an improved dealer network and hence, market share
gains. South America, 7% of sales, is equally following a growth track as the
product portfolio for the region is incrementally stepped up.
Chinese JV: Licences for the major JV with Sany are expected to be obtained in
autumn 2012E, upon which Palfinger will start first production in rented premises.
Production in the JV’s own facilities looks set to start in H2 2013E. The European
sales JV is expected to start operation already in H2 2012E
Internationalisation: After our last company visit as well as recent discussion with
the company, we have the impression that further acquisitions are on the agenda,
particularly in Brazil where Palfinger currently already operates a production facility
and seeks to substantially increase its product offering. In our view, Brazil remains an
attractive market with expected GDP growth rates of 5.5% in 2013E.
With estimated investment costs of € 150m for the Chinese JV as well as one or two
possible acquisitions ahead, a capital increase is becoming increasingly likely.
The stock remains a clear BUY given: 1. the company’s strong exposure to the
Americas as well as Northern Europe, 2. Significant revenue potential from the
Chinese JV of around € 150m in the coming years, 3. The possibility of acquisitions in
less penetrated markets. PT is € 26.00 based on FCFY 2013E.
Y/E 31.12 (EUR m) 2008 2009 2010 2011 2012E 2013E 2014E
Sales 794.8 505.4 651.8 845.7 883.2 981.7 1,085.1
Sales growth 14 % -36 % 29 % 30 % 4 % 11 % 11 %
EBITDA 102.4 18.5 59.9 96.8 106.8 124.9 147.9
EBIT 73.8 -3.0 37.1 67.9 77.7 92.5 109.9
Net income 43.9 -7.8 24.2 42.0 50.6 58.7 68.7
Net debt 168.2 153.4 163.6 174.0 189.4 238.4 239.2
Net gearing 55.4 % 53.2 % 51.6 % 50.2 % 49.0 % 56.7 % 54.3 %
Net Debt/EBITDA 1.6 8.3 2.7 1.8 1.8 1.9 1.6
EPS fully diluted 1.24 -0.22 0.68 1.19 1.43 1.66 1.94
CPS 0.44 0.92 0.87 0.53 1.44 1.36 1.45
DPS 0.39 0.00 0.22 0.38 0.47 0.55 0.64
Dividend yield 2.2 % 0.0 % 1.2 % 2.1 % 2.6 % 3.0 % 3.6 %
Gross profit margin 46.3 % 47.4 % 48.3 % 47.1 % 47.8 % 48.1 % 48.4 %
EBITDA margin 12.9 % 3.7 % 9.2 % 11.4 % 12.1 % 12.7 % 13.6 %
EBIT margin 9.3 % -0.6 % 5.7 % 8.0 % 8.8 % 9.4 % 10.1 %
ROCE 15.6 % -0.6 % 6.9 % 11.4 % 12.0 % 13.0 % 14.0 %
EV/sales 1.0 1.6 1.2 1.0 0.9 0.9 0.8
EV/EBITDA 7.9 42.9 13.5 8.4 7.8 7.0 6.0
EV/EBIT 10.9 -266.0 21.7 12.0 10.7 9.5 8.0
PER 12.6 -90.6 26.2 15.1 12.6 10.8 9.3
Adjusted FCF yield 8.5 % 0.6 % 4.5 % 7.9 % 8.3 % 9.5 % 11.6 %
Source: Company data, Hauck & Aufhäuser Close price as of: 26.06.2012
Source: Company data, Hauck & Aufhäuser
High/low 52 weeks: 26.00 / 11.59
Price/Book Ratio: 1.6
Relative performance (ATX):
3 months 7.7 %
6 months 42.7 %
12 months 7.2 %
Changes in estimates
2012
2013
2014
Key share data:
Sales EBIT EPS
old: 883.2 77.7 1.43
∆ - - -
old: 981.7 92.5 1.66
∆ - - -
old: 1,085.1 109.9 1.94
∆ - - -
Number of shares: (in m pcs) 35.4
Authorised capital: (in € m) 0.0
Book value per share: (in €) 10.9
Ø trading volume: (12 months) 11,400
Major shareholders:
Palfinger Family 65.0 %
Free Float 29.0 %
Delta Lloyd 5.1 %
Palfinger AG 0.9 %
Danske 0.5 %
Ringturm 0.4 %
Company description:
Production and sales of innovative
lifting, loading and handling solutions
along the interface of the transportation
chain.

Palfinger AG
Financials
Profit and loss (EUR m) 2008 2009 2010 2011 2012E 2013E 2014E
Net sales 794.8 505.4 651.8 845.7 883.2 981.7 1,085.1
Sales growth 14.3 % -36.4 % 29.0 % 29.7 % 4.4 % 11.1 % 10.5 %
Increase/decrease in finished goods and work-in-process -9.1 -6.5 0.3 20.9 -4.0 1.0 1.1
Total sales 785.7 498.9 652.1 866.6 879.2 982.6 1,086.2
Other operating income 16.5 14.6 16.7 21.3 22.1 24.6 27.1
Material expenses 421.9 262.6 337.3 458.7 459.0 510.0 560.5
Personnel expenses 167.0 149.2 178.7 216.9 211.5 238.5 265.8
Other operating expenses 110.9 83.1 93.0 115.5 124.1 133.8 139.2
Total operating expenses 683.3 480.4 592.2 769.8 772.4 857.8 938.4
EBITDA 102.4 18.5 59.9 96.8 106.8 124.9 147.9
Depreciation 22.3 20.6 22.7 28.8 29.1 32.4 38.0
EBITA 80.2 -2.2 37.1 67.9 77.7 92.5 109.9
Amortisation of goodwill 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Amortisation of intangible assets 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Impairment charges 6.4 0.8 0.0 0.0 0.0 0.0 0.0
EBIT 73.8 -3.0 37.1 67.9 77.7 92.5 109.9
Interest income 0.5 0.7 0.5 0.5 0.2 0.2 0.9
Interest expenses 7.7 11.4 10.9 11.2 11.0 14.7 16.2
Other financial result -2.7 1.8 3.1 -0.2 3.8 3.8 2.2
Financial result -9.9 -8.9 -7.3 -10.9 -7.0 -10.8 -13.1
Recurring pretax income from continuing operations 63.9 -11.9 29.8 57.0 70.7 81.7 96.8
Extraordinary income/loss 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Earnings before taxes 63.9 -11.9 29.8 57.0 70.7 81.7 96.8
Taxes 15.7 -5.1 2.6 9.6 16.3 18.8 23.4
Net income from continuing operations 48.2 -6.8 27.3 47.4 54.4 62.9 73.4
Result from discontinued operations (net of tax) 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Net income 48.2 -6.8 27.3 47.4 54.4 62.9 73.4
Minority interest 4.3 1.1 3.1 5.4 3.8 4.2 4.7
Net income (net of minority interest) 43.9 -7.8 24.2 42.0 50.6 58.7 68.7
Average number of shares 35.3 35.3 35.4 35.4 35.4 35.4 35.4
EPS reported 1.24 -0.22 0.68 1.19 1.43 1.66 1.94
Profit and loss (common size) 2008 2009 2010 2011 2012E 2013E 2014E
Net sales 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %
Increase/decrease in finished goods and work-in-process -1.1 % -1.3 % 0.1 % 2.5 % -0.5 % 0.1 % 0.1 %
Total sales 98.9 % 98.7 % 100.1 % 102.5 % 99.5 % 100.1 % 100.1 %
Other operating income 2.1 % 2.9 % 2.6 % 2.5 % 2.5 % 2.5 % 2.5 %
Material expenses 53.1 % 52.0 % 51.7 % 54.2 % 52.0 % 52.0 % 51.7 %
Personnel expenses 21.0 % 29.5 % 27.4 % 25.6 % 23.9 % 24.3 % 24.5 %
Other operating expenses 13.9 % 16.4 % 14.3 % 13.7 % 14.0 % 13.6 % 12.8 %
Total operating expenses 86.0 % 95.1 % 90.9 % 91.0 % 87.4 % 87.4 % 86.5 %
EBITDA 12.9 % 3.7 % 9.2 % 11.4 % 12.1 % 12.7 % 13.6 %
Depreciation 2.8 % 4.1 % 3.5 % 3.4 % 3.3 % 3.3 % 3.5 %
EBITA 10.1 % -0.4 % 5.7 % 8.0 % 8.8 % 9.4 % 10.1 %
Amortisation of goodwill 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 %
Amortisation of intangible assets 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 %
Impairment charges 0.8 % 0.2 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 %
EBIT 9.3 % -0.6 % 5.7 % 8.0 % 8.8 % 9.4 % 10.1 %
Interest income 0.1 % 0.1 % 0.1 % 0.1 % 0.0 % 0.0 % 0.1 %
Interest expenses 1.0 % 2.3 % 1.7 % 1.3 % 1.2 % 1.5 % 1.5 %
Other financial result -0.3 % 0.4 % 0.5 % 0.0 % 0.4 % 0.4 % 0.2 %
Financial result -1.2 % -1.8 % -1.1 % -1.3 % -0.8 % -1.1 % -1.2 %
Recurring pretax income from continuing operations 8.0 % -2.3 % 4.6 % 6.7 % 8.0 % 8.3 % 8.9 %
Extraordinary income/loss 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 %
Earnings before taxes 8.0 % -2.3 % 4.6 % 6.7 % 8.0 % 8.3 % 8.9 %
Tax rate 24.6 % 43.1 % 8.6 % 16.9 % 23.0 % 23.0 % 24.2 %
Net income from continuing operations 6.1 % -1.3 % 4.2 % 5.6 % 6.2 % 6.4 % 6.8 %
Income from discontinued operations (net of tax) 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 %
Net income 6.1 % -1.3 % 4.2 % 5.6 % 6.2 % 6.4 % 6.8 %
Minority interest 0.5 % 0.2 % 0.5 % 0.6 % 0.4 % 0.4 % 0.4 %
Net income (net of minority interest) 5.5 % -1.5 % 3.7 % 5.0 % 5.7 % 6.0 % 6.3 %
Source: Company data, Hauck & Aufhäuser
2 Hauck & Aufhäuser Institutional Research

Palfinger AG
Balance sheet (EUR m) 2008 2009 2010 2011 2012E 2013E 2014E
Intangible assets 66.9 74.0 128.0 150.4 150.4 150.4 150.4
Property, plant and equipment 198.2 192.0 200.2 196.8 239.7 307.8 323.0
Financial assets 14.8 16.8 15.9 13.5 13.5 13.5 13.5
FIXED ASSETS 279.9 282.8 344.0 360.6 403.5 471.7 486.9
Inventories 185.6 148.7 159.8 198.6 207.4 230.5 254.8
Accounts receivable 119.7 80.2 110.5 120.9 126.2 140.3 163.5
Other current assets 22.5 17.7 15.4 21.4 21.4 21.4 0.0
Liquid assets 9.1 33.1 15.9 15.1 10.6 6.6 30.8
Deferred taxes 21.6 25.5 31.9 23.2 23.2 23.2 23.2
Deferred charges and prepaid expenses 0.0 0.0 0.0 0.0 0.0 0.0 0.0
CURRENT ASSETS 358.4 305.2 333.4 379.2 388.9 422.0 472.4
TOTAL ASSETS 638.3 588.0 677.4 739.8 792.4 893.7 959.3
SHAREHOLDERS EQUITY 303.5 288.3 317.4 346.6 386.1 420.3 440.3
MINORITY INTEREST 6.4 3.9 14.0 22.2 22.2 22.2 22.2
Long-term debt 44.9 127.4 123.6 86.3 160.0 235.0 260.0
Provisions for pensions and similar obligations 5.1 5.8 6.4 5.8 6.1 6.4 6.8
Other provisions 38.8 30.7 50.3 57.0 56.3 62.6 69.2
Non-current liabilities 88.8 163.9 180.2 149.2 222.4 304.0 335.9
short-term liabilities to banks 132.3 59.1 55.9 102.8 40.0 10.0 10.0
Accounts payable 62.3 35.2 55.9 62.4 62.9 72.6 80.3
Advance payments received on orders 2.4 1.7 5.2 7.9 8.3 9.2 10.1
Other liabilities (incl. from lease and rental contracts) 32.6 24.4 33.6 41.4 43.2 48.1 53.1
Deferred taxes 10.1 11.4 15.2 7.3 7.3 7.3 7.3
Deferred income 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Current liabilities 239.7 131.8 165.9 221.8 161.7 147.1 160.8
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY 638.4 588.0 677.4 739.8 792.4 893.7 959.3
Balance sheet (common size) 2008 2009 2010 2011 2012E 2013E 2014E
Intangible assets 10.5 % 12.6 % 18.9 % 20.3 % 19.0 % 16.8 % 15.7 %
Property, plant and equipment 31.1 % 32.7 % 29.5 % 26.6 % 30.3 % 34.4 % 33.7 %
Financial assets 2.3 % 2.9 % 2.3 % 1.8 % 1.7 % 1.5 % 1.4 %
FIXED ASSETS 43.8 % 48.1 % 50.8 % 48.7 % 50.9 % 52.8 % 50.8 %
Inventories 29.1 % 25.3 % 23.6 % 26.8 % 26.2 % 25.8 % 26.6 %
Accounts receivable 18.7 % 13.6 % 16.3 % 16.3 % 15.9 % 15.7 % 17.0 %
Other current assets 3.5 % 3.0 % 2.3 % 2.9 % 2.7 % 2.4 % 0.0 %
Liquid assets 1.4 % 5.6 % 2.3 % 2.0 % 1.3 % 0.7 % 3.2 %
Deferred taxes 3.4 % 4.3 % 4.7 % 3.1 % 2.9 % 2.6 % 2.4 %
Deferred charges and prepaid expenses 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 %
CURRENT ASSETS 56.1 % 51.9 % 49.2 % 51.3 % 49.1 % 47.2 % 49.2 %
TOTAL ASSETS 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %
SHAREHOLDERS EQUITY 47.5 % 49.0 % 46.8 % 46.9 % 48.7 % 47.0 % 45.9 %
MINORITY INTEREST 1.0 % 0.7 % 2.1 % 3.0 % 2.8 % 2.5 % 2.3 %
Long-term debt 7.0 % 21.7 % 18.2 % 11.7 % 20.2 % 26.3 % 27.1 %
Provisions for pensions and similar obligations 0.8 % 1.0 % 0.9 % 0.8 % 0.8 % 0.7 % 0.7 %
Other provisions 6.1 % 5.2 % 7.4 % 7.7 % 7.1 % 7.0 % 7.2 %
Non-current liabilities 13.9 % 27.9 % 26.6 % 20.2 % 28.1 % 34.0 % 35.0 %
short-term liabilities to banks 20.7 % 10.0 % 8.3 % 13.9 % 5.0 % 1.1 % 1.0 %
Accounts payable 9.8 % 6.0 % 8.3 % 8.4 % 7.9 % 8.1 % 8.4 %
Advance payments received on orders 0.4 % 0.3 % 0.8 % 1.1 % 1.0 % 1.0 % 1.1 %
Other liabilities (incl. from lease and rental contracts) 5.1 % 4.2 % 5.0 % 5.6 % 5.5 % 5.4 % 5.5 %
Deferred taxes 1.6 % 1.9 % 2.2 % 1.0 % 0.9 % 0.8 % 0.8 %
Deferred income 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 %
Current liabilities 37.6 % 22.4 % 24.5 % 30.0 % 20.4 % 16.5 % 16.8 %
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %
Source: Company data, Hauck & Aufhäuser
3 Hauck & Aufhäuser Institutional Research

Palfinger AG
Cash flow statement (EUR m) 2008 2009 2010 2011 2012E 2013E 2014E
Net profit/loss 38.2 -14.0 27.3 47.4 54.4 62.9 73.4
Depreciation of fixed assets (incl. leases) 22.3 20.6 22.7 28.8 29.1 32.4 38.0
Amortisation of goodwill 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Amortisation of intangible assets 6.4 0.8 0.0 0.0 0.0 0.0 0.0
Others -3.7 -13.1 19.7 -10.8 0.3 0.3 0.3
Cash flow from operations before changes in w/c 63.2 -5.5 69.7 65.4 83.9 95.6 111.7
Increase/decrease in inventory -33.7 36.9 -11.0 -28.8 -8.8 -23.1 -24.3
Increase/decrease in accounts receivable 5.8 39.5 -30.3 -5.4 -5.4 -14.1 -23.2
Increase/decrease in accounts payable -2.7 -20.8 20.8 6.5 0.5 9.7 7.7
Increase/decrease in other working capital positions 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Increase/decrease in working capital -30.6 55.6 -20.6 -27.7 -13.7 -27.5 -39.8
Cash flow from operating activities 32.6 50.0 49.1 37.7 70.2 68.2 71.8
CAPEX 48.1 14.3 18.9 24.4 72.1 100.5 53.2
Payments for acquisitions 29.7 3.0 36.3 11.5 0.0 0.0 0.0
Financial investments 0.5 0.0 1.0 0.0 0.0 0.0 0.0
Income from asset disposals 1.2 1.4 2.2 1.3 0.0 0.0 0.0
Cash flow from investing activities -77.1 -15.9 -54.1 -34.6 -72.1 -100.5 -53.2
Cash flow before financing -44.5 34.2 -5.0 3.1 -1.9 -32.4 18.6
Increase/decrease in debt position 79.3 6.7 -11.6 8.2 10.9 45.0 25.0
Purchase of own shares 0.0 0.0 0.0 0.5 0.0 0.0 0.0
Capital measures 0.1 0.0 0.0 0.0 0.0 0.0 0.0
Dividends paid 24.7 13.8 0.0 11.6 13.5 16.7 19.4
Others -3.5 -3.2 -1.1 0.0 0.0 0.0 0.0
Effects of exchange rate changes on cash -0.1 0.2 0.4 0.1 0.0 0.0 0.0
Cash flow from financing activities 51.1 -10.4 -12.6 -3.9 -2.6 28.3 5.6
Increase/decrease in liquid assets 6.5 24.0 -17.2 -0.7 -4.5 -4.1 24.3
Liquid assets at end of period 9.1 33.1 15.9 15.1 10.6 6.6 30.8
Source: Company data, Hauck & Aufhäuser
Regional split (EUR m) 2008 2009 2010 2011 2012E 2013E 2014E
Domestic 0.0 0.0 0.0 0.0 0.0 0.0 0.0
yoy change n/a n/a n/a n/a n/a n/a n/a
Rest of Europe 653.0 387.0 446.6 599.2 596.2 608.6 606.6
yoy change 12.8 % -40.7 % 15.4 % 34.2 % -0.5 % 2.1 % -0.3 %
NAFTA 41.0 60.0 156.1 192.4 227.0 229.7 229.0
yoy change -16.3 % 46.3 % 160.1 % 23.3 % 18.0 % 1.2 % -0.3 %
Asia Pacific 42.0 28.0 30.9 38.0 42.1 127.1 242.1
yoy change 44.8 % -33.3 % 10.5 % 22.7 % 10.7 % 202.1 % 90.5 %
Rest of world 59.0 31.0 18.2 16.1 18.0 16.3 7.5
yoy change 51.3 % -47.5 % -41.4 % -11.6 % 12.1 % -9.7 % -53.8 %
TTL 794.8 505.4 651.8 845.7 883.2 981.7 1,085.1
yoy change 14.3 % -36.4 % 29.0 % 29.7 % 4.4 % 11.1 % 10.5 %
Source: Company data, Hauck & Aufhäuser
4 Hauck & Aufhäuser Institutional Research

Palfinger AG
Key ratios (EUR m) 2008 2009 2010 2011 2012E 2013E 2014E
P&L growth analysis
Sales growth 14.3 % -36.4 % 29.0 % 29.7 % 4.4 % 11.1 % 10.5 %
EBITDA growth -15.4 % -82.0 % 224.0 % 61.6 % 10.4 % 16.9 % 18.4 %
EBIT growth -30.0 % -104.0 % -1345.3 82.8 % 14.4 % 19.0 % 18.8 %
EPS growth -40.6 % -117.8 % -409.1 % 73.2 % 20.6 % 16.0 % 17.0 %
Efficiency
Total operating costs / sales 86.0 % 95.1 % 90.9 % 91.0 % 87.4 % 87.4 % 86.5 %
Sales per employee 170.4 111.9 139.5 146.5 158.2 160.6 167.8
EBITDA per employee 22.0 4.1 12.8 17.3 19.1 21.4 23.5
Balance sheet analysis
Avg. working capital / sales 28.7 % 42.8 % 30.8 % 27.1 % 29.0 % 28.1 % 28.4 %
Inventory turnover (sales/inventory) 4.3 3.4 4.1 4.3 4.3 4.3 4.3
Trade debtors in days of sales 55.0 57.9 61.9 52.2 52.2 52.2 55.0
A/P turnover [(A/P*365)/sales] 28.6 25.4 31.3 26.9 26.0 27.0 27.0
Cash conversion cycle (days) 186.9 239.2 203.4 183.2 191.1 190.1 193.9
Cash flow analysis
Free cash flow -15.5 35.8 30.2 13.2 -1.9 -32.4 18.6
Free cash flow/sales -1.9 % 7.1 % 4.6 % 1.6 % -0.2 % -3.3 % 1.7 %
FCF / net profit -35.3 % -457.4 % 124.6 % 31.5 % -3.8 % -55.1 % 27.1 %
FCF yield -2.4 % 5.6 % 4.8 % 2.1 % -0.3 % -5.1 % 2.9 %
Capex / depn 169.5 % 66.4 % 87.6 % 84.6 % 247.3 % 310.3 % 140.0 %
Capex / maintenance capex 349.9 % 82.1 % 104.0 % 103.8 % 373.5 % 505.7 % 259.9 %
Capex / sales 6.1 % 2.8 % 3.1 % 2.9 % 8.2 % 10.2 % 4.9 %
Security
Net debt 168.2 153.4 163.6 174.0 189.4 238.4 239.2
Net Debt/EBITDA 1.6 8.3 2.7 1.8 1.8 1.9 1.6
Net debt / equity 0.6 0.5 0.5 0.5 0.5 0.6 0.5
Interest cover 9.6 0.0 3.4 6.1 7.1 6.3 6.8
Dividend payout ratio 31.4 % 0.0 % 32.2 % 32.1 % 33.0 % 33.0 % 33.0 %
Asset utilisation
Capital employed turnover 1.5 1.0 1.1 1.4 1.3 1.3 1.3
Operating assets turnover 1.8 1.3 1.6 1.9 1.8 1.6 1.7
Plant turnover 4.0 2.6 3.3 4.3 3.7 3.2 3.4
Inventory turnover (sales/inventory) 4.3 3.4 4.1 4.3 4.3 4.3 4.3
Returns
ROCE 15.6 % -0.6 % 6.9 % 11.4 % 12.0 % 13.0 % 14.0 %
ROE 14.5 % -2.7 % 7.6 % 12.1 % 13.1 % 14.0 % 15.6 %
Other
Interest paid / avg. debt 5.9 % 6.3 % 6.0 % 6.1 % 5.7 % 6.6 % 6.3 %
No. employees (average) 4664 4517 4671 5600 5591 5847 6289
Number of shares 35.3 35.3 35.4 35.4 35.4 35.4 35.4
DPS 0.4 0.0 0.2 0.4 0.5 0.5 0.6
EPS reported 1.24 -0.22 0.68 1.19 1.43 1.66 1.94
Valuation ratios
P/BV 2.1 2.2 2.0 1.8 1.6 1.5 1.4
EV/sales 1.0 1.6 1.2 1.0 0.9 0.9 0.8
EV/EBITDA 7.9 42.9 13.5 8.4 7.8 7.0 6.0
EV/EBITA 10.1 -366.4 21.7 12.0 10.7 9.5 8.0
EV/EBIT 10.9 -266.0 21.7 12.0 10.7 9.5 8.0
EV/FCF -52.1 22.2 26.7 61.7 -432.5 -27.2 47.3
Dividend yield 2.2 % 0.0 % 1.2 % 2.1 % 2.6 % 3.0 % 3.6 %
Source: Company data, Hauck & Aufhäuser
5 Hauck & Aufhäuser Institutional Research

Palfinger AG
Disclosure in respect of section 34b of the German Securities Trading Act
(Wertpapierhandelsgesetz – WpHG)
Company
Disclosure
Palfinger AG 5
(1) Hauck & Aufhäuser or its affiliate(s) was Lead Manager or Co-Lead Manager over the previous 12 months of a public offering of this
company.
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(4) Hauck & Aufhäuser and/or its affiliate(s) hold 5 % or more of the share capital of this company.
(5) Hauck & Aufhäuser holds a trading position in shares of this company.
(6) Hauck & Aufhäuser and/or its affiliate(s) holds a net short position of 1 % or more of the share capital of this company, calculated by
methods required by German law as of the last trading day of the past month.
(7) Within the last five years Hauck & Aufhäuser was a member of the issuing syndicate of this company.
(8) The research report has been made available to the company prior to its publication / dissemination. Thereafter, only factual changes have
been made to the report
Historical target price and rating changes for Palfinger AG in the last 12 months
Initiation coverage
18-October-10
Hauck & Aufhäuser distribution of ratings and in proportion to investment banking services
Buy 83.33 % 100.00 %
Sell 7.14 % 0.00 %
Hold 9.52 % 0.00 %
Valuation basis/rating key
Buy: Sustainable upside potential of more than 10% within 12 months.
Sell:
Sustainable downside potential of more than 10% within 12 months.
Hold: Upside/downside potential limited. No immediate catalyst visible.
Competent supervisory authority
Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin – (Federal Financial Supervisory Authority), Graurheindorfer Straße 108, 53117 Bonn and
Lurgiallee 12, 60439 Frankfurt am Main, Germany
6 Hauck & Aufhäuser Institutional Research

Palfinger AG
Important Disclosures
This research report has been prepared by Hauck & Aufhäuser Institutional Research AG, Hamburg, or one of its affiliates (“Hauck & Aufhäuser”).
Hauck & Aufhäuser has made every effort to carefully research all information contained in this financial analysis. The information on which the
financial analysis is based has been obtained from sources which we believe to be reliable such as, for example, Reuters, Bloomberg and the
relevant specialised press as well as the company which is the subject of this financial analysis.
Only that part of the research note is made available to the issuer, who is the subject of this analysis, which is necessary to properly reconcile with
the facts. Should this result change considerably, a reference is made in the research note.
Opinions expressed in this financial analysis are the current, personal opinions of the analyst responsible for the document as of the issuing date
indicated on this document and are subject to change without notice. Hauck & Aufhäuser does not commit itself in advance to whether and in which
intervals an update is made. Also, the opinions in this document no not necessarily correspond to the opinions of Hauck & Aufhäuser.
The document and the recommendations and estimations contained therein are not linked - whether directly or indirectly - to the compensation of
the analyst responsible for the document.
No representation, guarantees or warranties are made by Hauck & Aufhäuser with regard to the accuracy, completeness or suitability regarding all
the information on the stocks, stock markets or developments referred to in it.
On no account should the document be regarded as a substitute for the recipient’s procuring information for himself or exercising his own
judgements.
The document has been produced for information purposes only, and only for institutional clients or market professionals. In particular, it is not
intended to be distributed to private investors or private customers. Private investors or private customers, into whose possession this document
comes, should discuss possible investment decisions with their customer service officer as differing views and opinions may exist with regard to the
stocks referred to in this document.
This document is not a recommendation, offer or solicitation to buy or sell the mentioned stock and will not form the basis or a part of any contract.
The document may include certain descriptions, statements, estimates, and conclusions underlining potential market and company development.
These reflect assumptions, which may turn out to be incorrect. Past performance is not a guide to future results. The price of securities may
decrease or increase and as a result investors may loose the amount originally invested. Changes in exchange rates may also cause the value of
investments to decrease or increase. Hauck & Aufhäuser and/or its directors, officers and employees accept no responsibility or liability whatsoever
for any direct or consequential loss or damages of any kind arising out of the use of this document or any part of its content. To the extent this
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Hauck & Aufhäuser may act as market-maker or underwrite issues for any securities mentioned in this document, derivatives thereon or related
financial products or perform or seek to perform capital market or underwriting services.
Hauck & Aufhäuser reserves all the rights in this document. No part of the document or its content may be rewritten, copied, photocopied or
duplicated in any form by any means or redistributed without Hauck & Aufhäuser’s prior written consent.
Please note that our research is only for the personal use of Hauck & Aufhäuser institutional clients. Do not pass on to third parties or
make available to third parties. From time to time Hauck & Aufhäuser Institutional Research AG will be compensated for its services
using soft dollar compensation arrangements, such as trading commissions.
By accepting this document, a recipient hereof agrees to be bound by the foregoing limitations.
Remarks regarding foreign investors
The preparation of this document is subject to regulation by German law. The distribution of this document in other jurisdictions may be restricted by
law, and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions
7 Hauck & Aufhäuser Institutional Research

Palfinger AG
Contacts: Hauck&Aufhäuser Investment Banking
Hauck & Aufhäuser Research
Hauck & Aufhäuser
Institutional Research AG
Mittelweg 142
20148 Hamburg
Germany
Tel.: +49 (0) 40 414 3885 - 70
Fax: +49 (0) 40 414 3885 - 71
Email: info@ha-research.de
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Sascha Berresch, CFA
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E-Mail: sascha.berresch@ha-research.de
Henning Breiter
Analyst
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E-Mail: henning.breiter@ha-research.de
Nils-Peter Fitzl
Analyst
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Marie-Therese Gruebner
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Christian Schwenkenbecher
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Torben Teichler
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Thomas Wissler
Analyst
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E-Mail: thomas.wissler@ha-research.de
Tim Wunderlich, CFA
Analyst
Tel.: +49 (0)40 414 3885 - 81
E-Mail: tim.wunderlich@ha-research.de
Hauck & Aufhäuser Sales
Vincent Bischoff
Sales
Tel.: +49 (0)40 414 3885 - 88
E-Mail: vincent.bischoff@ha-research.de
Hugues Madelin
Sales
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E-Mail: hugues.madelin@ha-research.de
Hamish Edsell
Sales
Tel.: +44 207 763 2180
E-Mail: hamish.edsell@ha-research.de
Toby Woods
Sales
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Supervisory Board
Graeme Davies
Chairman
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E-Mail: graeme.davies@ha-research.de
Michael Schramm
Tel.: +49 (0)69 2161 - 1240
E-Mail: michael.schramm@hauck-aufhaeuser.de
Jochen Lucht
Tel.: +49 (0)69 2161 - 1260
E-Mail: jochen.lucht@hauck-aufhaeuser.de
Hauck & Aufhäuser Sales Trading
Hauck & Aufhäuser
Privatbankiers KGaA
Kaiserstraße 24
60311 Frankfurt am Main
Germany
Tel.: +49 (0) 69 2161- 0
Fax: +49 (0) 69 2161- 1340
Email: info@hauck-aufhaeuser.de
www.hauck-aufhaeuser.de
Mirko Brueggemann
Trading
Tel.: +49 (0)69 2161 - 1525
E.Mail: mirko.brueggemann@hauck-aufhaeuser.de
Sebastian Schuett
Trading
Tel.: +49 (0)69 2161 – 1556
E.Mail: sebastian.schuett@hauck-aufhaeuser.de
Thomas Seibert
Trading
Tel.: +49 (0)69 2161 - 1555
E.Mail: thomas.seibert@hauck-aufhaeuser.de
8 Hauck & Aufhäuser Institutional Research