Cargotec financials Eeva Sipil Executive Vice President, CFO - - PowerPoint PPT Presentation

18 November 2014

Cargotec financials

Eeva Sipilä Executive Vice President, CFO

January–September key figures

Q1-Q3/14 Q1-Q3/13 Change 2013 2012 Orders received, MEUR 2,685 2,348 14% 3,307 3,058 Order book, MEUR 2,327 2,048 14% 1,980 2,021 Sales, MEUR 2,395 2,267 6% 3,181 3,327 Operating profit, MEUR* 77.8 87.9 126.5 157.5 Operating profit margin, %* 3.2 3.9 4.0 4.7 Cash flow from operations, MEUR 120.3 47.0 180.9 97.1 Interest-bearing net debt, MEUR 835 577 578 478 Earnings per share, EUR 0.48 0.77 0.89 1.45

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* excluding restructuring costs

Cargotec’s book-to-bill – healthy 2014 development in turbulent environment

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MEUR 200 400 600 800 1,000 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Orders Sales

Cargotec’s profit generation by business area – targeting improvement and better balance

1 2 3 4 5 6 7

• 30
• 20
• 10

10 20 30 40 50 60 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 MacGregor Kalmar Hiab Corporate costs Cargotec operating profit%

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MEUR

excluding restructuring costs

%

Restructuring costs from past few year’s efficiency improvement measures

3.2 9.9 10.4 2.7 7.1 24.0 0.4 0.8 12.6 5 10 15 20 25 30 MacGregor Kalmar Hiab 2012 2013 1-9/2014

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MEUR

Cargotec hedges foreign exchange related transaction risk

 Cargotec is a global company with

• perations in over 120 countries in

different currency zones. All legal companies fully hedge their transactional foreign exchange (FX) risk (order book and B/S items) against their functional currencies.

 FX translation risk (accounting risk)

exists and is not hedged.

 Economic risk relates to uncommitted

cash flows or those from expected but not yet committed future product

• sales. This is managed by optimizing

supply/sourcing footprint to sales mix.

USD EUR NOK SEK Other

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Translation exposure 1-9/2014

Cargotec financial targets for 2016

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Operating profit margin (EBIT) Return on capital employed (ROCE pre-tax) Gearing Dividend

• f earnings per share

Operating profit margin – improvement in all BAs from current level to reach set target

• 8
• 4

4 8 12 16 2008 2009 2010 2011 2012 2013 1-9/2014 Cargotec MacGregor Kalmar Hiab

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excluding restructuring costs

%

Cargotec financial targets for 2016

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Operating profit margin (EBIT) Return on capital employed (ROCE pre-tax) Gearing Dividend

• f earnings per share

2 4 6 8 10 12 14 16 500 1,000 1,500 2,000 2,500 2008 2009 2010 2011 2012 2013 1-9/2014 Return (pre-tax) Capital employed ROCE% ROCE% (excl. Restructuring costs)

Return on capital employed (ROCE) raised as new financial target in Cargotec

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10.5 26.2 34.0 14.2

Restructuring costs MEUR %

19.1 61.1

Operative ROCE in MacGregor – recent acquisitions have increased capital employed

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10 20 30 40 50 60 70 100 200 300 400 500 600 2012 2013 1-9/2014 Operating profit Operative capital employed (ext) ROCE % MEUR %

Operative ROCE in Kalmar – cost

• verruns have weighed heavily

2 4 6 8 10 12 14 100 200 300 400 500 600 700 800 900 2012 2013 1-9/2014 Operating profit Operative capital employed (ext) ROCE % ROCE % excl. cost overruns

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MEUR %

Operative ROCE in Hiab – profitability improvement supporting returns

1 2 3 4 5 6 7 8 100 200 300 400 500 2012 2013 1-9/2014 Operating profit Operative capital employed (ext) ROCE %

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MEUR %

Cargotec financial targets for 2016

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Operating profit margin (EBIT) Return on capital employed (ROCE pre-tax) Gearing Dividend

• f earnings per share

Cash flow from operations continues as key priority for Cargotec

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134 290 293 166 97 181 120

50 100 150 200 250 300 350 2008 2009 2010 2011 2012 2013 1-9/2014 MEUR

Gearing and net debt/EBITA affected by disappointing Q2/14, focus on deleveraging post-acquisitions continues

Gearing %

55.3 38.0 16.0 25.6 39.2 46.7 68.3 10 20 30 40 50 60 70 80 08 09 10 11 12 13 1- 9/14

Net debt/EBITA

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2.6 35.9 1.2 1.3 3.2 5.2 7.4 5 10 15 20 25 30 35 40 08 09 10 11 12 13 1- 9/14*

* EBITA rolling 12 months

Balanced debt portfolio from maturity structure and source point of view

As of 30 Sep 2014:

 Commercial bank loans

200 MEUR

 Revolving credit facility 30 MEUR

(270 MEUR undrawn, maturity until Jan 2019)

 Commercial papers 145 MEUR  Corporate bonds 304 MEUR  Loans from international

financial institutions 235 MEUR

 Subsidiary loans and leasing liabilities

56 MEUR

 Hatlapa capital loan of 40 MEUR

included in 30 Sep 2014 figures but repaid in October

40 80 120 160 200 240 280 2014 2015 2016 2017 2018 2019 2020-

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Repayment schedule

• f interest-bearing liabilities

MEUR

Cargotec financial targets for 2016

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Operating profit margin (EBIT) Return on capital employed (ROCE pre-tax) Gearing Dividend

• f earnings per share

Dividend pay-out history in line with policy of 30–50% of earnings per share

2.57 2.17 1.91 0.05 1.21 2.42 1.45 0.89 0.48 1.00 1.05 0.60 0.40 0.61 1.00 0.72 0.42

2006 2007 2008 2009 2010 2011 2012 2013 1-9/2014 EPS Dividend B share

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MEUR 3.00 2.50 2.00 1.50 1.00 0.50 0.00

39% 50% 47% 48% 31% 800% 50% 41%

Corporate initiatives for 2015–2016

Corporate-wide programme on control environment to improve business performance and deliver without surprises Continue rolling-out and leveraging systems platform and tools to support better efficiency and transparency Profitability improvement actions continue in all business areas, with special focus on returns and cash generation/working capital