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

April 23, 2007

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Q1 Interim report January-March 2007 Senior Executive Vice President and CFO Kari Heinistö

April 23, 2007 2

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

April 23, 2007 3

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

April 23, 2007 4

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

April 23, 2007 5

Acquisitions in January-March

* Acquisition finalized in April **Acquisition not yet finalized

• 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**

April 23, 2007 6

Orders received

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

April 23, 2007 7

Orders received by Business Area

MEUR

*Pro forma

Hiab MacGREGOR Kalmar

150 300 450 600 750 900 1,050

1

• 3

/ 4 * 4

• 6

/ 4 * 7

• 9

/ 4 * 1

• 1

2 / 4 * 1

• 3

/ 5 * 4

• 6

/ 5 * 7

• 9

/ 5 1

• 1

2 / 5 1

• 3

/ 6 4

• 6

/ 6 7

• 9

/ 6 1

• 1

2 / 6 1

• 3

/ 7

April 23, 2007 8

Order book at record level

MEUR

*Pro forma

1,811 1,439 1,345 897 300 600 900 1,200 1,500 1,800 2,100 3 1 . 1 2 . 3 * 3 1 . 3 . 4 * 3 . 6 . 4 * 3 . 9 . 4 * 3 1 . 1 2 . 4 * 3 1 . 3 . 5 * 3 . 6 . 5 3 . 9 . 5 3 1 . 1 2 . 5 3 1 . 3 . 6 3 . 6 . 6 3 . 9 . 6 3 1 . 1 2 . 6 3 1 . 3 . 7

April 23, 2007 9

Net sales growth continued – about half of the growth was organic, half came from acquisitions

MEUR +13% 694 1,658 2,358 1,900 614 2,597 400 800 1,200 1,600 2,000 2,400 2,800 2003 Pro forma 2004 Pro forma 2005 Pro forma 2006 Q1/2006 Q1/2007

April 23, 2007 10

Geographical development of net sales – strongest growth in Asia

Americas Asia Pacific EMEA MEUR

*Pro forma

1,072 1,368 384 476 720 176 509 403 134 1,335 344 620 99 352 171 300 600 900 1,200 1,500 2 4 * 2 5 * 2 6 Q 1 / 2 7 2 4 * 2 5 * 2 6 Q 1 / 2 7 2 4 * 2 5 * 2 6 Q 1 / 2 7

+35% +12%

Q1 Q1 Q1

+3%

April 23, 2007 11

Services grew by 30% y-on-y representing 25% of net sales

Hiab MacGREGOR Kalmar % of net sales MEUR

% *Pro forma

95 109 37 223 311 94 116 128 42 134 267 110

50 100 150 200 250 300 350

2 4 * 2 5 * 2 6 Q 1 / 2 7 2 4 * 2 5 * 2 6 Q 1 / 2 7 2 4 * 2 5 * 2 6 Q 1 / 2 7

10 20 30 40 50

April 23, 2007 12

Operating profit improved

MEUR 240 195

Non-recurring capital gains

58 51 222 179 85 15 124 18

50 100 150 200 250 2003 Pro forma 2004 Pro forma 2005 Pro forma 2006 Q1/2006 Q1/2007

April 23, 2007 13

Operating profit from operations by business area

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

April 23, 2007 14

Earnings per share (basic)

EUR 0.62 0.52 0.81 2.11 1.20 2.57 0.00 0.50 1.00 1.50 2.00 2.50 3.00 2003 Pro forma 2004 Pro forma 2005 Pro forma 2006 Q1/2006 Q1/2007

April 23, 2007 15

Cash flow from operating activities before financial items and taxes

MEUR 52 41 147 194 158 250

50 100 150 200 250 300 2003 Pro forma 2004 Pro forma 2005 Pro forma 2006 Q1/2006 Q1/2007

April 23, 2007 16

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

April 23, 2007 17

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.