Kalmar profit improvement is proceeding as planned Olli Isotalo - - PowerPoint PPT Presentation

18 November 2014

Kalmar profit improvement is proceeding as planned

Olli Isotalo President, Kalmar

• 1. Status of Kalmar

profitability development

• 2. Kalmar must-win battles
• Mobile Equipment
• Services
• Automation
• 3. Conclusions

18 Nov 2014 2

Clear progress in Kalmar profitability development

3.9 7.0 16.0 15.6 25.5 11.2

• 19.4

30.7 0.9 2.2 3.9 4.4 5.5 3.4

• 6.0

8.0

• 30
• 20
• 10

10 20 30 40 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Operating profit excl. restructuring costs Operating profit % MEUR

18 Nov 2014 3

% 20 15 10 5

• 5
• 10
• 15

Improvements in design-to-cost

Kalmar is on track with profit improvement initiatives

2012 2013 2014

Organisational efficiency and refocused R&D Development of service business Ramp-up of production in Rainbow Cargotec Industries joint venture Further development of integrated port automation solutions Improvements in design-to-cost We are on track with 40M run rate improvement

Kalmar Care contracts won

Supply footprint development Project delivery capability development

Forklifts moved to Cibolo in NA New products launched 51M cost-

• verruns in

STS projects No cost

• verruns

from automation projects VICTL contract Good order intake for RTGs

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Kalmar Profit Improvement Programme

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Supply footprint and design- to-cost

2015 2014

Sourcing Sales/ Service network Pricing Spare parts Total savings (2014 impact) Supply footprint and design- to-cost Automation and Projects Division Sales/ Service network Total savings (2015 impact) Spare parts Pricing Sourcing

Bromma spreaders Navis TOS Automation STS cranes ASCs Straddle carriers Siwertell RTGs Shuttle carriers Maintenance Crane upgrades Fleet management Spare parts Empty container handlers Reachstackers Forklift trucks Terminal tractors

Kalmar business mix has changed

Terminal projects

30%

Equipment

42%

Services

28%

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Must-win battle:

How to secure competitiveness of Mobile Equipment

New Kalmar Ottawa T2 distribution tractor strengthens our market position in Americas

• Innovative, operator-

friendly design

• Safety enhancements and

easier maintenance and serviceability

• Profit improvement

initiatives integrated

– Design-to-cost – Sourcing – Improved pricing power

• Excellent launch and

market acceptance

• All time record in order

intake and production

• Market share growing

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New G-generation electric forklift launched for industrial customers

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• Energy efficient and highly

environmentally friendly product

• Equally high performing as

powerful diesel trucks

• Reduced total cost of
• wnership
• Profit improvement

initiatives integrated

– Design-to-cost – Sourcing – Improved pricing power

Kalmar Gloria reachstacker enters Asia and Americas

• High-end product developed based on

customer values

• Differentiation against low-cost

competition

• Profit improvement initiatives

integrated

– Design-to-cost – Sourcing – Improved pricing power

• Meeting customer requirements in

emerging markets with specialised

• ffering: T-models a success in APAC,

now entering also Middle East, Africa and Latin America

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Must-win battle:

How to set Services back to peer growth

Services development continues in all areas

• Kalmar Care contracts

won in all regions

• Kalmar Care for

automated terminals – work in progress

• Crane Upgrades

growth delayed, but still anticipated

• Spare parts pricing and

tool development will show results in 2015

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Must win battle:

How to win in automation

Lessons learned from current mega projects, now we are ready to win

TraPac, Los Angeles

Status: Commercial

• perations partly started,

in the optimisation phase

HHLA, Hamburg

Status: Completed

DPW London Gateway

Status: Commercial

• perations started,

in the optimisation phase

DPW Brisbane

Status: Commercial

• perations started, in the
• ptimisation phase

Patrick, Sydney

Status: Handing over in process

VICTL, Melbourne

Status: Contract signed

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Kalmar and Navis have a leading position in port automation

Kalmar’s current market share 30–50%, Navis 80% in automated terminals

Kalmar automation projects Kalmar/Navis automation solution

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Customer

Digital ecosystem revolutionises the way of working

Testing & simulation

• Investment in Tampere

Technology and Competence Centre

• Automation test field
• Automation laboratory
• Simulation environment
• Proto shop

Terminal Operating System (TOS) Terminal Logistics System (TLS)

• Modular system

architecture

• Measurement systems
• Remote diagnostics
• Fault management
• Graphical UI framework
• Pre-integrated with

Navis N4 TOS and Kalmar equipment

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Cooperation with local partners

• Strong utilisation of

R&D ecosystem results

• University of Tampere
• FIMECC
• SME partners
• Public funding partner:

Tekes

Kalmar has all the capabilities to respond to the increased demand for port automation

• Terminals are looking for different types
• f automation
• Greenfield projects = New automated

terminals, expansion of current automated terminals or conversions of existing manual

• perations

– Currently approx. 25 projects on-going or planned – Expected 20 more projects in coming five years

• Brownfield projects = Automating existing

manual operations

– Development in early phase – Currently approx. 130 existing straddle carrier terminals, of which 10% with automation potential – Currently approx. 430 existing RTG terminals,

• f which 10–15% with automation potential

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Conclusions

 Project delivery capabilities improved based

• n lessons learned

 Excellent development in Mobile Equipment

will continue

 Good progress in Services in most of the areas  Strong future growth expected for port automation  Increased investments in automation and

digitalisation Kalmar is driving for industry leading financial performance

18 Nov 2014 19