Annual General Meeting 18 March 2015 President and CEO Mika - PowerPoint PPT Presentation

Annual General Meeting 18 March 2015 President and CEO Mika Vehviläinen

 Profit improvement programmes had a positive impact in Kalmar and Hiab  Successful acquisitions in MacGregor Achievements  Reorganisation programme launched in MacGregor  Development of business control environment 18 Mar 2015 3

 Cost overruns in Kalmar projects  MacGregor market environment Challenges  Operational development not ready 18 Mar 2015 4

 Major orders  Product launches  Investment in Poland 2014 events 18 Mar 2015 5

Major orders in 2014 Deck handling equipment for six anchor handling tug supply vessels, Norway Optimised cargo handling Loader cranes and related More than 400 Ottawa systems for seven services order, UK container vessels, South terminal tractors, North America Korea 559 demountables and 237 loader cranes, Australia Port automation project, Melbourne, Australia 18 Mar 2015 6

MacGregor service – productivity care 18 Mar 2015 7

Kalmar Ottawa terminal tractor and electric forklift for industrial applications 18 Mar 2015 8

HIAB S-HiPro 130 crane designed for waste handling 18 Mar 2015 9

Revolutionary and environmentally sound pre- treatment and paint process, nDurancenTM 18 Mar 2015 10

Hiab’s factory in Poland opened 18 Mar 2015 11

Order book grew 11 percent MEUR 4,000 3,599 3,307 3,233 3,058 3,000 2,729 2,426 2,200 2,356 2,021 2,000 1,980 1,000 0 2010 2011 2012 2013 2014 Order book Orders received 18 Mar 2015 12

Sales grew six percent MEUR 4,000 3,181 3,358 3,327 3,000 3,139 2,575 2,000 1,000 0 2010 2011 2012 2013 2014 18 Mar 2015 13

Operating profit margin increased to 4.4 percent % 8 6.6 6 5.5 4.7 4.4 4.0 4 2 0 2010 2011 2012 2013 2014 excluding restructuring costs 18 Mar 2015 14

MacGregor – profitability burdened by one-off items and low delivery volume in merchant ships MEUR %  Orders received grew 20% from 2013 400 10  Contribution of acquired 361 businesses EUR 121 million 304 8 301 300  Order book grew 15% from 2013 8.0 6.6  Sales grew 30% from 2013 6 218  Contribution of acquired 200 businesses EUR 61 million 4  Profitability 5.2% excluding 100 restructuring costs 2  PPA depreciation and amortisation EUR 10.0 million 0 0 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Orders Sales Operating profit % * excluding restructuring costs 18 Mar 2015 15

Kalmar – profit improvement measures had a positive impact on operating profit MEUR %  Orders received grew 4% from 2013 500 10 468 452 8  Sales declined 4% from 2013 7.6 400 378 6 357 5.5  Profitability 3.8% excluding restructuring costs 4  Cost overruns in projects EUR 52 million 300 2 0 200 -2 -4 100 -6 0 -8 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Orders Sales Operating profit % * ilman uudelleenjärjestelykuluja 18 Mar 2015 16

Hiab – operating profit clearly improved as a result of actions taken to improve profitability MEUR %  Orders received grew 5% from 2013 300 9 8.4 8  Sales were at 2013 level 241 250 232 229 7 211  Profitability 7.3% excluding restructuring costs 200 6 5 150 4 100 3 2 1.7 50 1 0 0 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Orders Sales Operating profit % * excluding restructuring costs 18 Mar 2015 17

Cargotec’s must wins 2013–2014 Converting Hiab’s high business potential into profitability Creating solid platform for growth through successful integration of acquisitions in MacGregor Safeguarding competitiveness in mobile equipment in Kalmar Driving services offering development and growth in MacGregor and Kalmar Driving growth in automation in Kalmar 18 Mar 2015 18

Cargotec’s must wins 2015– Driving Hiab to best in class profitability and capital return Driving MacGregor profitability over the cycle through better effectiveness Safeguarding competitiveness in mobile equipment in Kalmar Driving services offering development and growth in MacGregor and Kalmar Driving growth in automation in Kalmar 18 Mar 2015 19

Outlook  Market outlook  Cargotec’s 2015 outlook published on 10 February still valid:  Cargotec’s 2015 sales are expected to grow from 2014 (3,358 MEUR).  Operating profit excluding restructuring costs for 2015 is expected to improve from 2014 (149.3 MEUR). 18 Mar 2015 20

Cargotec financial targets for 2016 Operating profit Return on capital (EBIT) employed (ROCE pre-tax) Gearing Dividend of earnings per share 18 Mar 2015 21

Future of cargo handling relies on smart sustainability and digitalisation 18 Mar 2015 22

Our market leading brands guarantee the highest value for our customers 18 Mar 2015 23