Q1 Interim report January-March 2007 Senior Executive Vice - PowerPoint PPT Presentation

Q1 Interim report January-March 2007 Senior Executive Vice President and CFO Kari Heinistö April 23, 2007 1

Key issues in January-March 2007 • Orders received were record high totaling EUR 915 (Q1/2006: 805) million • Net sales grew by 13% and amounted to EUR 694 (614) million • Operating profit improved to EUR 57.9 (50.9) million, representing 8.3 (8.3)% of net sales • Cargotec’s strategic development proceeded in line with plans: – Services business was developed and grew by 30% – Global network was expanded – Knowledge base was strengthened – 8 acquisitions made during the quarter 2 April 23, 2007

Market activity was high • Development of world economy and trade strong, US construction industry at lower level y-on-y • Container traffic volumes continue to grow • Ship building at ship yards continues at high level • Load handling equipment demand in Europe strong • Demand for services robust 3 April 23, 2007

Cargotec’s order intake record high • Hiab – Load handling equipment demand strong in Europe – Demand for truck-mounted forklifts and tail lifts weakened in US • Kalmar – Container handling equipment demand healthy in Europe and Asia – Demand for reachstackers particularly bouyant – Heavy industrial equipment demand lively in Central Europe • MacGREGOR – Ship cranes in particularly high demand – RoRo equipment demand continued robust – Bulk handling equipment demand grew 4 April 23, 2007

Acquisitions in January-March • Services company Tagros in Slovenia • Berger sales and service/installation network in Eastern Europe** • Sales and services company Truck och Maskin i Örnsköldsvik in Northern Sweden • Increased equity stake in distribution and services company BG Crane in Australia • Services company PES serving US ports and intermodal terminals • Manufacturing capacity in India through Indital * • Offshore and sub sea load handling systems company Hydramarine in Norway* • Plimsoll in Singapore focused on offshore load handling solutions, especially winches** * Acquisition finalized in April **Acquisition not yet finalized 5 April 23, 2007

Orders received MEUR 2,910 3,000 2,385 2,500 2,337 1,848 2,000 1,500 915 +14% 1,000 805 500 0 2003 Pro 2004 Pro 2005 Pro 2006 Q1/2006 Q1/2007 forma forma forma 6 April 23, 2007

Orders received by Business Area MEUR Hiab Kalmar MacGREGOR 1,050 900 750 600 450 300 150 0 * * 5 6 6 6 7 * * * * 5 6 4 4 4 4 5 5 0 0 0 0 0 0 0 0 0 0 0 0 0 / / / / / / / 9 2 3 6 9 2 3 / / / / / / 3 6 9 2 3 6 - 1 - - - 1 - 7 1 4 7 1 - - - 1 - - - - 1 4 7 1 4 0 0 - 0 1 1 1 *Pro forma 7 April 23, 2007

1,811 7 0 . 3 . 1 3 6 0 . 2 1 . 1 3 6 0 . 9 . 0 3 6 0 . 6 1,439 . 0 3 6 0 . 3 . 1 3 5 0 . 2 1 . 1 3 5 0 . 9 . 0 3 Order book at record level 5 0 . 6 1,345 . 0 3 * 5 0 . 3 . 1 3 * 4 0 . 2 1 . 1 * 3 4 0 . 9 . 0 3 * 4 0 . 6 897 . 0 3 * 4 0 . *Pro forma 3 . April 23, 2007 1 3 * MEUR 3 0 . 2 1 2,100 1,800 1,500 1,200 900 600 300 0 . 1 3 8

Net sales growth continued – about half of the growth was organic, half came from acquisitions MEUR 2,800 2,597 2,358 2,400 1,900 2,000 1,658 1,600 1,200 +13% 694 800 614 400 0 2003 Pro 2004 Pro 2005 Pro 2006 Q1/2006 Q1/2007 forma forma forma 9 April 23, 2007

Geographical development of net sales – strongest growth in Asia EMEA Americas Asia Pacific MEUR 1,500 1,368 1,335 1,200 1,072 900 720 620 600 509 476 403 384 344 352 300 +12% 176 171 134 99 +3% +35% Q1 Q1 Q1 0 * * 6 7 * * 6 7 * * 6 7 4 5 4 5 4 5 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2 2 2 2 2 / / / 1 1 1 Q Q Q *Pro forma 10 April 23, 2007

Services grew by 30% y-on-y representing 25% of net sales Hiab Kalmar MacGREGOR % of net sales MEUR % 350 50 311 300 267 40 250 223 30 200 150 134 128 20 116 109 110 95 94 100 10 42 37 50 0 0 * * 6 7 * * 6 7 * * 6 7 4 5 4 5 4 5 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2 2 2 2 2 / / / 1 1 1 Q Q Q *Pro forma 11 April 23, 2007

Operating profit improved MEUR 250 240 18 195 222 200 15 179 150 124 100 85 58 51 50 0 2003 Pro 2004 Pro 2005 Pro 2006 Q1/2006 Q1/2007 forma forma forma Non-recurring capital gains 12 April 23, 2007

Operating profit from operations by business area Pro forma Pro forma MEUR 1-3/2007 1-3/2006 2006 2005 2004 44.6 24.3 22.5 Hiab 86.0 66.6 10.1% 6.4% 9.8% 9.4% 7.9% % 66.4 26.8 25.0 111.7 97.6 Kalmar 7.7% 8.3% 8.8% 9.3% 8.5% % 10.6 6.1 35.9 27.5 20.9 MacGREGOR 8.1% 6.0% 7.5% 7.5% 6.2% % Corporate admin, others (3.8) (2.7) (11.9) (12.3) (8.0) Cargotec total 57.9 50.9 221.7 179.4 123.9 8.3% 8.3% 8.5% 7.6% 6.5% % 13 April 23, 2007

Earnings per share (basic) EUR 3.00 2.57 2.50 2.11 2.00 1.50 1.20 0.81 1.00 0.62 0.52 0.50 0.00 2003 Pro 2004 Pro 2005 Pro 2006 Q1/2006 Q1/2007 forma forma forma 14 April 23, 2007

Cash flow from operating activities before financial items and taxes MEUR 300 250 250 194 200 158 147 150 100 52 41 50 0 2003 Pro 2004 Pro 2005 Pro 2006 Q1/2006 Q1/2007 forma forma forma 15 April 23, 2007

Key figures Pro forma 31.3.2007 2006 2005 Earnings per share EUR 0.62 2.57 2.11 Equity per share EUR 13.16 13.72 11.93 Interest-bearing net debt MEUR 179.6 107.5 120.5 Total equity/total assets % 40.7 47.6 46.2 Gearing % 21.3 12.3 15.7 Return on equity % 18.3 20.2 19.2 Return on capital employed % 19.9 23.1 20.9 16 April 23, 2007

Outlook General market activity is expected to remain healthy. Development of the services business will continue during the year in line with Cargotec’s strategy. Following the record high order intake in the first quarter Cargotec’s full year 2007 order intake is expected to surpass net sales. Net sales growth including acquisitions is expected to clearly exceed 10 percent. Cargotec’s operating margin in 2007 is expected to be on the level of last year’s operating margin from operations before on-going growth and efficiency related investments as well as purchase price allocation treatment of acquisitions. 17 April 23, 2007