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Issuer Reports INTEGRATED ANNUAL REPORT TABLE OF CONTENTS Key Figures of the PALFINGER Group IFC/2 How to Use this Integrated Annual Report 4 Mission Statement 5 Foreword by the CEO 6 Highlights of 2013 10 PALFINGER at a Glance 12 STRATEGY AND VALUE MANAGEMENT 15 Long-Term Group Strategy 16 Strategic Priorities in 2013 19 Strategic Objectives for the Period until 2017 21 Value Management 24 The PALFINGER Brand 24 CORPORATE GOVERNANCE REPORT 27 Information According to Sec. 243b of the Business Code 28 Governing Bodies 28 Remuneration Report 32 Governance and Sustainability 32 Fair Business 33 Corporate Ethics and Corruption Prevention 33 Taxes and Subsidies 34 Code of Corporate Governance 35 STAKEHOLDER AND INVESTOR RELATIONS 37 Stakeholder Management 38 International Stock Markets 40 The PALFINGER Shares 40 CONSOLIDATED MANAGEMENT REPORT 45 Market Review 46 Economic Environment 46 Industry Review 47 PALFINGER and its Competitors 51 Customers and Suppliers 52 Performance of the PALFINGER Group 58 Business Development in 2013 58 Signifi cant Changes 60 Legal Changes within the PALFINGER Group 62 Information According to Sec. 243a of the Business Code 63 Financial Position, Cash Flows and Result of Operations 64 Treasury 68 Risk Report 69 Research, Development and Innovation 77 Value-Creation Strategy 83 Human Resources 89 Performance by Segment 96 EUROPEAN UNITS 96 AREA UNITS 99 VENTURES 101 Key Events after the Balance Sheet Date 102 Outlook 103 CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DEC 2013 105 Consolidated Income Statement 107 Consolidated Statement of Comprehensive Income 108 Consolidated Balance Sheet 109 Consolidated Statement of Changes in Equity 110 Consolidated Statement of Cash Flows 112 Operating Segments 113 Notes to the Consolidated Financial Statements 118 General 118 Consolidation Principles 119 Fair Value Measurement 132 Accounting and Valuation Measures 133 Use of Estimates and Judgements 145 Notes to the Consolidated Income Statement 148 Notes to the Consolidated Balance Sheet 158 Financial Instruments 182 Other Disclosures 194 STATEMENT OF LEGAL REPRESENTATIVES 198 AUDITOR’S REPORT 199 REPORT OF THE SUPERVISORY BOARD 201 SUSTAINABILITY INDEX 203 Materiality Analysis 204 Sustainability Report Profi le and Boundaries 207 GRI Index 209 Independent Assurance Report 216 SERVICE 221 Defi nition of Performance Indicators 222 Corporate Locations of the PALFINGER Group 224 Index 226 Companies of the PALFINGER Group IBC/227 General Information IBC/229 PALFINGER integrated Annual Report 2013 KEY FiGURES OF THE PALFINGER GROUP KEY FIGURES OF THE PALFINGER GROUP EUR thousand Income statement 2013 2012 2011 2010 2009 Revenue 980,673 935,215 845,677 651,793 505,365 EBITDA 105,491 97,950 96,764 59,887 18,483 EBITDA margin 10.8% 10.5% 11.4% 9.2% 3.7% EBIT 74,121 68,454 67,917 37,148 (2,983) EBIT margin 7.6% 7.3% 8.0% 5.7% (0.6%) Result before income tax 61,122 53,725 57,000 29,833 (11,860) Consolidated net result for the period 44,038 40,409 41,955 24,225 (7,823) Balance sheet Total assets 849,510 813,565 739,774 677,431 587,973 Net working capital (average) 172,129 151,291 118,774 117,740 151,587 Capital employed (average) 593,852 552,210 500,699 462,257 460,235 Equity 385,914 364,874 352,780 319,891 292,277 Equity ratio 45.4% 44.8% 47.7% 47.2% 49.7% Net debt 217,925 217,565 166,876 160,932 151,880 Gearing 56.5% 59.6% 47.3% 50.3% 52.0% Cash flows and investments Cash flows from operating activities 62,499 55,394 37,662 49,118 50,044 Free cash flows 31,577 (3,103) 11,695 4,166 41,979 Net investments 32,003 40,799 23,673 18,709 15,916 Depreciation, amortization and impairment 31,370 29,496 28,847 22,739 21,466 Value creation ROCE 9.8% 10.2% 11.1% 7.1% 0.0% ROE 13.0% 12.7% 14.1% 8.9% (2.4%) EVA 14,621 18,958 20,475 (3,308) (31,033) WACC 7.4% 6.7% 7.0% 7.8% 7.0% Human resources Annual average payroll1) 6,573 6,175 5,600 4,671 4,517 Staff absence due to industrial accidents 0.19% 0.25% 0.22% 0.33% 0.5% (in % of regular working time) Training hours per employee 11.9 8.5 8.6 5.7 15.8 Percentage of women in management 12.9% 12.5% 11.6% 10.8% 11.2% Products and environment Percentage of revenue from products for ecological and social purposes 23.3% 22.0% 24.5% n.a.2) n.a.2) Index: Energy consumption per production output 88% 100% 100% n.a.2) n.a.2) Index: Greenhouse gas emissions per production output 89% 100% 100% n.a.2) n.a.2) Index: Hazardous waste per production output 91% 101% 100% n.a.2) n.a.2) Suppliers with excellent and good environmental management 60% n.a.3) 32% n.a.2) n.a.2) Shares Number of shares issued 35,730,000 35,730,000 35,730,000 35,730,000 35,730,000 Market capitalization 1,030,810 587,401 440,551 1,027,238 556,673 Price as at year end (EUR) 28.85 16.44 12.33 28.75 15.58 Earnings per share (EUR) 1.24 1.14 1.19 0.68 (0.22) Operating cash flows per share (EUR) 1.77 1.57 1.06 1.39 1.41 Dividend per share (EUR) 0.414) 0.38 0.38 0.22 0.00 1) Consolidated Group companies excluding equity shareholdings, as well as excluding temporary workers. 2) Figures cannot be presented due to change in reporting systems. 3) Evaluated centrally every two years. 4) Proposal for presentation to the Annual General Meeting. PALFINGER integrated Annual Report 2013 KEY FiGURES OF THE PALFINGER GROUP EcONOMY 980,673 62,499 74,121 935,215 68,454 55,394 67,917 845,677 50,044 49,118 651,793 37,662 505,365 37,148 (2,983) 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 REVENUE EbiT OPERATING CASH FLOWS (EUR thousand) (EUR thousand) (EUR thousand) HUMAN RESOURCES 6,573 20.2% 0.5% 6,175 5,600 4,671 4,517 0.33% 11.4% 10.3% 0.25% 9.6% 9.5% 0.22% 0.19% 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 HEADCOUNT EMPLOYEE TURNOVER STAFF AbsENCE (in per cent) DUE TO INDUSTRIAL AcciDENTS (in per cent) PRODUCTS AND ENviRONMENT 101% 100% 100% 100% 100% 100% 91% 89% 88% 2011 2012 2013 2011 2012 2013 2011 2012 2013 ENERGY CONSUMPTION GREENHOUSE GAS HAZARDOUS WASTE PER PRODUCTION OUTPUT EMissiONS PER PER PRODUCTION (indexed 2011) PRODUCTION OUTPUT OUTPUT (indexed 2011) (indexed 2011) 3 PALFINGER integrated Annual Report 2013 HOW TO UsE THIS INTEGRATED ANNUAL REPORT HOW TO UsE This INTEGRATED ANNUAL REPORT This Annual Report 2013 is the first integrated annual report published by the PALFINGER Group. It not only presents the economic and legal information relating to the Group but also contains all the informa- tion on the sustainable aspects of PALFINGER’s strategy and business activities. This information is not bundled in a separate chapter but rather is integrated into the individual chapters concerned. The principles of fair business are found in the corporate governance report (starting on page 27). The information relating to PALFINGER as a responsible employer is contained in the chapter Human Resources (starting on page 89), eco-efficiency in production is an integral part of PALFINGER’s value-creation strategy (from page 83), and sustainable products are a result of research, development and innovation (from page 77). The Sustainability Annex (starting on page 203) comprises the basic information pertaining to selected sustainability-related aspects of this Report – the materiality analysis, the report profile and boundaries, the GRI Index and the independent assurance statement with regard to sustainability reporting. Detailed information on sustainability issues that exceeded the scope of this Report is available online or may be downloaded from the Company’s website at www.palfinger.ag/en/sustainability. Hence, this Report and the information on the website supplement each other. To help the reader, both documents contain references: reference to a passage in the Integrated Annual Report reference to detailed information disclosed at the website www.palfinger.ag reference to a GRI indicator Thus, the Integrated Annual Report 2013 provides an overview of all the topics relevant to PALFINGER and Bitte sammeln Sie Altpapier für das Recycling. Dieses Druckerzeugnis ist wiederverwertbar. Es wurde auf umweltfreundlichem Papier gedruckt. its stakeholders. The Report is in accordance with the International Financial Reporting Standards (IFRS) Die Menge der durch die Papierherstellung und das Bedrucken in Luft und Wasser abgegebenen Chemikalien ist begrenzt. Gedruckt nach der as well as the international G4 Sustainability Reporting Guidelines of the Global Reporting Initiative (GRI). Richtlinie „Druckerzeugnisse“ des Österreichischen Umweltzeichens, Druckerei Roser, UW-Nr. 1037 PALFINGER’s employees all over the world are the basis of the Group’s success. They develop and sell GRI G4-22: Restatements products, expand existing markets and establish new ones, procure raw materials and components, en- of reported information hance value creation, prepare partnerships and acquisitions, and provide, monitor and improve manage- ment control data. It is these employees who make PALFINGER so special, and it is they, also, who have Gedruckt nach der Richtlinie „Druckerzeugnisse“ facilitated the first integrated annual report of the PALFINGER Group. des Österreichischen Umweltzeichens, Druckerei Roser, UW-Nr. 1037 Bitte sammeln Sie Altpapier für das Recycling.
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