PALFINGER extends its position as the global number one for innovative crane and lifting solutions. Improvements in all product areas with a global strategy achieve the best synergy potential with the highest quality standards.
The outstanding revenue development over the last two fiscal years makes it necessary to formulate a new financial target.
PALFINGER continues to steadily pursue its growth course. Based on the positive revenue development, sales are expected to increase organically to EUR 3.0 billion by 2027, independently of developments in CIS region. In addition to inflation, the above-average growth in the NAM and LATAM regions are decisive factors for PALFINGER.
PALFINGER wants to achieve an EBIT margin of 10 percent by 2027 through the targeted and coordinated use of synergies. Key factors are the use of synergies through the GPO, the implementation of dynamic pricing, the further development of shared service centers or the optimization of globally positioned functional areas.
Stringent current capital management and a focus on assets serving the core business aim to reach a ROCE of 12 percent by 2027.
A comprehensive materiality analysis was carried out in 2021 and the sustainability strategy was defined. This is based on environmental, social and governance criteria. With regard to the environment, the focus is on reducing energy consumption and emissions both within the company and along the upstream and downstream value chain. The safety of PALFINGER's products is a central issue for social affairs, as is the health and safety of the company’s employees, in addition to training and continuing education, staff turnover, diversity, and staff development. The topic of governance includes anti-corruption and corporate governance objectives. Concrete target values will be set in 2023 through a detailed analysis of obtained data.
Implementation of Strategy 2030
Strategy implementation was initiated in 2021 and intensified in the current reporting year. The "Go for Solutions" pillar includes the expansion of the Köstendorf Technology Centre into a global innovation and development center, where core elements such as control, regulation and drive technology are developed uniformly and centrally. Important component of this strategic pillar is the technical integration of product and vehicle into a complete unit. Innovations like eWorX, a joint solution with ZF Friedrichshafen and Mercedes for bodies on e-trucks, and Smart Loading Assist, a product innovation for hook lifts, which were presented at IAA and bauma 2022, must not go unmentioned.
In the "Go Digital" pillar, PALFINGER is expanding the digitalization of its products, processes and business models and promoting the cooperation of all internal functions that are responsible for digital issues. A major milestone was the creation of a new, dedicated product line, the "Digital Product Line". Its task is to work closely with internal and external partners to expand and complement PALFINGER's existing portfolio with new, innovative, digital products and services based on data-driven business models.
Outlook: Mid-term implementation of the strategy by 2025
To secure PALFINGER's future growth, the high level of investment activities will be continued. Examples include the consistent implementation of the sustainability strategy, the modernization of production facilities, and the strengthening of the supply chain and the supplier network to safeguard the supply chains.