Foreword

In many aspects, 2023 presented significant challenges. However, it marked a milestone of which we can be proud. Despite persistent inflation, high interest rates and a rapidly deteriorating economic environment, especially in EMEA, PALFINGER achieved its most successful financial year with record sales of EUR 2.45 billion, a record EBIT of EUR 210.2 million and the highest EBIT margin since 2008. As a result, a record dividend can be expected.

As well as achieving a historic result, 2023 also involved extensive preparations for the forthcoming year, which currently is characterized by the prevailing economic challenges in Europe. Bearing this in mind, we continued to drive forward the execution of Strategy 2030 and fine-tuned our organizational framework to enhance efficiency. This strategic optimization aims to ensure our readiness for anticipated challenges and the ability to swiftly and effectively respond to unexpected events.

This is evident in the investments we have dedicated to shaping PALFINGER’s future. The PALFINGER Campus in Lengau now serves as a comprehensive training and continuing education center accessible to all employees. Additionally, in Lengau, the interactive PALFINGER World allows customers, partners, and visitors to experience our products and solutions firsthand, providing valuable insights into PALFINGER’s manufacturing expertise. The recently established regional headquarters in Schaumburg, USA, enhances customer proximity for North American operations. This expansion significantly boosts PALFINGER’s presence in the second most important market. Furthermore, the start of the construction of our new facility in Niš, Serbia, marks a substantial expansion of our European production network. This new location offers appealing cost advantages and access to a skilled workforce. In addition, we have consolidated our technology and manufacturing capabilities for aerial working platforms in Löbau, creating optimal conditions for expanding this product line into another key pillar of PALFINGER’s portfolio.

There have been modifications to the Executive Board: Since July 2023, Alexander Susanek has been driving PALFINGER's ongoing transformation process forward as Chief Operation Officer (COO) together with the entire Executive Board. Maria Koller has been responsible as Chief Human Resources Officer (CHRO) for HR and legal affairs since January 2024 and is focusing on positioning our company as an attractive and competitive employer.

Our focus in the coming months will be on further increasing the company's resilience and, at the same time, consistently implementing our strategy. The primary focus lies in optimizing working capital, stringent investment management and targeted cost reduction. On this basis, we are sticking to our medium-term financial targets for 2027 with sales of EUR 3 billion, an ROCE of 12 percent and an EBIT margin of 10 percent.

Together with our employees, customers, partners and investors we generate added value every day. Thank you for joining us on this journey.