7. Atos Gipfelgespräche: Andreas Klauser von Palfinger im brutkasten Talk

I have to say, I can look back on a very successful year. We had a record year with over 1.8 billion in revenue, a record year in the history of PALFINGER, also a record year in dividend distribution of 77 cents, which has never happened before. That's a very positive part. That means we were also able to manage material price increases and supply chain shortages very well last year. We're now entering this year with a very good order book, but the problem is that due to the further tightening of the delivery situation with truck manufacturers, we still have extended delivery times. That means the price increases we've implemented will only take effect later, so we're now going to be lower in the short and medium term in terms of results, until mid-year, compared to the previous year, which was a record year. These are challenges, and perhaps a small comparison: it sometimes feels like the board game 'Mensch ärgere dich nicht' where you're just about to reach the goal and then you get kicked out. I didn't even know that.

Yes, we were lucky that we started doing our homework very early on and recognized this early. We set up our own task force, and when we didn't get tips from our regular suppliers, we also went to the broker to get them, of course at higher prices, but everything could be mapped out. This year, we're pulling the lever that we also have the chance where we get our products very late. If you take the big truck manufacturers like Daimler, they had delays of up to 18 months in delivery time, and I can only build the crane and invoice it once the truck is there. Now energy prices are being added, now the Ukraine crisis is being added. Of course, it's primarily about mitigating the humanitarian crisis, but the economic impact on the economy will be such that we have a very tough start to the year. Few people know that these cable harnesses, especially in the commercial vehicle industry, were largely manufactured manually in Ukraine. Our suppliers now have another shortfall, which also shows up with the trucks. We expect that until mid-year we should be below the previous year, or significantly below the previous year, and then we can reconstruct the whole thing again, but that will also take several months. So this is a very high level of tension, and the topic is that if the whole team is already under strong stress to be positive and generate good results, now comes the raw material shortage, which remains a topic, and that will also be overcome. And now additionally, through this military conflict, which of course is a humanitarian catastrophe, and we've also contributed to many projects to help refugees, refugees in the Salzburg area, also taking relief measures with the Red Cross, quickly with Caritas, simply to ensure that we can also offer these people a positive environment. Economically, we're looking at a bleak year, or will you also be able to cushion these costs, whether for energy prices or other topics?

In the second half of the year, it looks like we can cushion it. There will probably be no more records, but there will also be no loss. We will certainly be positive again in the millions range, as we were in the comparison. It's just that when you have a record year, the year after, when you fall back, you don't want that yourself, the investors don't want it, the business partners don't want it, but that's part of this reality. But we do see, I'll say now for 2023, with all the projects we have, we've accelerated everything. We're staying fully on trucks, the branding topic, the whole topic of training, our PALFINGER campus, all of that, we're going full throttle on it, and then we'll be best prepared for 2023.

And that's very important from my perspective, that you don't let this innovative strength be shot down or strongly reduced in the moment when any negative situation plays out. We have it in our long-term planning, we've also communicated it accordingly, and our investors also understand that we'll come out of the crisis much faster because of it. If I were to slow everything down now and then see how it works, and what works, that would be the wrong approach.

I have to say, the environment of the family, the private retreat, is very important. And I have to say, after my return from the USA in 2018, we've settled in very well here. And perhaps the USA comes into play here: in the USA, everything is addressed directly, and it's now also an opportunity in this very tough moment to move things through concrete statements, and where we also find understanding in the workforce, in the employees, that you make announcements and then also work through them, because everyone is very focused, because there's a lot of stress on the left and right. On the other hand, I have to say, we've also managed during the COVID period to establish a leadership team, a new setup, the board and the level below the board, which can now fully engage, where we can also better manage the pressure or the explanation to take other employees along, because the cascading works better here. And when our employees have also seen that despite some tougher announcements, they can be successful, everyone was able to keep their job. We now have an employee count of over 11,000, which was reduced to under 10,000, because all these elements play a role, and now even positively in our favor, that we keep the training and further education, this campus, everything, but nothing gets cut. Perhaps the dimension is sometimes adjusted, but we stay on course.

I think it's important here to prevent this spiral of aggression or violence from advancing further, so that aggression is not directed against the Russian population, which was initiated by certain leaders. I think that's very important. Also helping to take in Ukrainian refugees, we're doing that too, but also seeing the opportunity, because some will perhaps stay with positive attributes and be quickly integrated, and those are also resources we'll certainly need in the future. All these elements still make me very positive despite the great crisis and despite the humanitarian tragedy. And we also need the leadership that you're showing right now, Andreas. Many, many thanks for these insights.

Thank you, thank you.