Q4 2012 investor presentation Strategy and structure Mar 2013 3 - - PowerPoint PPT Presentation

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q4 2012 investor presentation
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Q4 2012 investor presentation Strategy and structure Mar 2013 3 - - PowerPoint PPT Presentation

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Q4 2012 investor presentation Strategy and structure Mar 2013 3 Cargotecs businesses Share of total Geographical split Services share of Order to delivery sales in 2012 of sales in 2012 sales in 2012 lead time EMEA 24% Solutions

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SLIDE 1
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SLIDE 2

Q4 2012 investor presentation

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SLIDE 3

Strategy and structure

Mar 2013 3

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SLIDE 4

Mar 2013

Cargotec’s businesses

Share of total sales in 2012 Services share of sales in 2012

4

Geographical split

  • f sales in 2012

Order to delivery lead time

Solutions for maritime transportation and offshore industries. Cargo handling and automation solutions for ports and terminals Solutions for industrial and

  • n-road load handling

32% 43% 25% 17% 25% 27% 12-24 months 6-9 months 2-4 months EMEA 24% APAC 72% AMER 4% EMEA 43% APAC 22% AMER 35% EMEA 55% APAC 13% AMER 32%

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SLIDE 5

Separate listing of MacGregor in Asia

 A separate listing of Marine business

area provides an opportunity to accelerate growth and value creation

  • f the business.

 Cargotec will retain a majority stake in

the listed subsidiary.

 In February 2013, the Board decided

to establish the domicile of the future parent company of MacGregor business area in Singapore.

 The management of MacGregor will

be based in Singapore.

Mar 2013 5

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SLIDE 6

Service

MacGregor core is in merchant ships, offshore

  • ffers attractive growth opportunities

Bulk carrier Naval ship RoRo ship Tanker Transloader

Offshore cranes Hatch covers Cranes RoRo

equipment

Customers

Container ship General cargo ship

Winches

OFS Subsea OFS AHTS OFS TUG

Merchant ships Offshore ships

X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X

6

~80% ~20%

Mar 2013

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SLIDE 7

Manufacturing Installation After Sales Service Outsourced MacGregor Sales & Marketing MacGregor Design & Engineering MacGregor Outsourced MacGregor Outsourced

Concept focused on design, engineering and service Reasonable margins Focus on core competencies Cash positive Low fixed cost High flexibility

MacGregor’s business model – built-in flexibility

Outsourced

Mar 2013 7

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SLIDE 8

Product fit Fleet performance Customer performance

Kalmar’s strategy 2011–2015

 To make our customers businesses run

more effectively and efficiently

 Objective is to be the leading and most

efficient box moving company

 Focus on integrated automation

solutions

 Navis  Extensive R&D investment  Improve competitiveness of product

  • ffering

 Grow services business

Mar 2013 8

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SLIDE 9

Services

Global service network Rebuilding and refurbishing Service contracting Terminal development

The most comprehensive offering for Kalmar

Mar 2013

Systems & Automation

Terminal operating systems Automated equipment Automated terminals

Equipment

Complete set of equipment for container and cargo handling tasks

Systems & Automation

Terminal operating systems Automated equipment Process automation

Packaging, Integration & Operationalisation

9

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SLIDE 10

Kalmar’s short term strategic actions

 Improve operational efficiency

 Organisation with clear P&L responsibilities  Reduction of fixed cost

 Improve volume product

competitiveness

 Transfer of production from Lidhult to

Poland

 EMEA network integration

 Improve profitability of big projects

 Increased project management competence  Rainbow-Cargotec joint venture in China for

production

 Development of way of working and tools  Tighter integration of sales and delivery

Mar 2013 10

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SLIDE 11

Hiab’s strategy 2011–2015

 Focus on customer needs  Target is to be the leading on-road

load handling supplier

 Profitability over sales growth  Product differentiation  Route to market  Presence in mature markets with

focused approach in China, Brazil and Russia

Mar 2013 11

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SLIDE 12

Hiab’s short term strategic actions

 Cost efficiency  Outsourcing  Sourcing footprint  Product cost improvement  Supply efficiency  Investment in Poland  Frontline execution development  Offering development

Mar 2013 12

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SLIDE 13

January- December financials

Mar 2013 13

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Highlights of Q4

 Order intake decreased 16% y-o-y

to EUR 710 (842) million

 Sales grew 7% y-o-y to EUR 890

(828) million

 EUR 25.7 million was booked in

restructuring costs

 Operating profit margin excluding

restructuring costs was 4.4%

 Cash flow from operations at

previous year’s level totalling EUR 90.6 (88.3) million

Mar 2013 14

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SLIDE 15

Restructuring costs in 2012

Cargotec MacGregor Kalmar Hiab Corporate

MEUR 26.2 MEUR 3.2 MEUR 9.9 MEUR 10.4 MEUR 2.8

Of which MEUR 19 cash flow impact

  • Restructuring

measures in selfunloader, services and

  • ffshore

businesses

  • Adjusting
  • perations to

improve profitability

  • Centralising the

assembly of reachstackers and empty container handlers from Lidhult, Sweden, to Poland

  • Transfer of

production in China

  • Restructuring

sales and distribution network in various countries globally

  • Restructuring and

capacity adjustment measures in Hudiksvall, Sweden

  • Adjusting
  • perations to the

new business- driven operating model

Mar 2013 15

Measures taken are estimated to result in approximately EUR 30 million cost savings for 2013.

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SLIDE 16

January–December key figures

Mar 2013 16

*excluding restructuring costs

Q4 2012 Q4 2011 Change Q1-Q4/2012 Q1-Q4/2011 Change Orders received, MEUR 710 842

  • 16%

3,058 3,233

  • 5%

Order book, MEUR 2,021 2,426

  • 17%

2,021 2,426

  • 17%

Sales, MEUR 890 828 7% 3,327 3,139 6% Operating profit, MEUR* 39.5 48.0

  • 18%

157.2 207.0

  • 24%

Operating profit margin, %* 4.4 5.8 4.7 6.6 Cash flow from operations, MEUR 90.6 88.3 97.1 166.3 Interest-bearing net debt, MEUR 478 299 478 299 Earnings per share, EUR 0.14 0.56 1.45 2.42

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Performance development

Mar 2013 17

710 890 4.4 1 2 3 4 5 6 7 8 Orders Sales Operating profit%* 1,000 800 600 400 200 MEUR %

* excluding restructuring costs

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SLIDE 18

MacGregor Q4 – margin remained strong

 Profitability at strong level  EBIT includes EUR 7 million capital

gain from a sale of property in Singapore

 Demand for marine cargo handling

equipment for offshore support vessels, RoRo vessels and bulk terminals remained healthy

 Sales declined 9 percent from the

comparison period

Mar 2013 18

216 215 284 259 15.1 16.0 2 4 6 8 10 12 14 16 18 100 200 300 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Orders Sales Operating profit%* MEUR %

* excluding restructuring costs and including capital gain

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SLIDE 19

Kalmar Q4 – profitability hampered by cost

  • verruns on large projects

 Demand for container handling

equipment remained brisk albeit no big project orders were booked

 Sales grew 18% y-o-y  Profitability excluding restructuring

costs was 0.5%

 Cost overruns on large projects  Low relative share of services  Investment in port automation

technology

 Focus on profitability and project

execution

Mar 2013 19

425 292 337 396 3.1 0.5 2 4 100 200 300 400 500 600 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Orders Sales Operating profit%* MEUR %

* excluding restructuring costs

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SLIDE 20

Hiab Q4 – order intake and sales remained healthy

 Demand for load handling equipment

was healthy – strong in Americas, softer in Europe

 Orders at previous year’s level  Sales grew 13% y-o-y  Profitability excluding restructuring

costs was 3.5%

 Focus on profitability

Mar 2013 20

202 203 208 235 2.5 3.5 1 2 3 4 50 100 150 200 250 300 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Orders Sales Operating profit%* MEUR %

* excluding restructuring costs

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SLIDE 21

Strongest quarter for cash flow from

  • perations

Mar 2013 21

97 91

  • 50

50 100 150 200 250 300 350 2008 2009 2010 2011 2012 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 MEUR

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SLIDE 22

Services sales grew 3% in 2012

Mar 2013 22

765 206 2008 2009 2010 2011 2012 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 800 1,000 600 400 200 MEUR

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SLIDE 23

Balanced geographical split in sales

Mar 2013 23

25% 43% 32% 40% 36% 24%

MacGregor Kalmar Hiab Americas APAC EMEA Equipment 83 (86) % Services 17 (14) % Equipment 73 (72) % Services 27 (28) % Equipment 75 (70) % Services 25 (30) % Sales by reporting segment 2012, % Sales by geographical segment 2012, %

(40) (39) (21) (24) (37) (39)

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SLIDE 24

Earnings per share and dividend (B share)

2.57 2.17 1.91 0.05 1.21 2.42 1.45 1.00 1.05 0.60 0.40 0.61 1.00 0.72* 2006 2007 2008 2009 2010 2011 2012 EPS Dividend

Mar 2013 24

* Dividend proposal by the Board of Directors

3.00 0.50 0.00 1.00 1.50 2.00 2.50 EUR

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SLIDE 25

New President and CEO

 Mr Mika Vehviläinen was

appointed as new President and CEO 27 January 2013

 New President and CEO started

at Cargotec on 1 March 2013

 Previously he was the President

and CEO of Finnair Plc.

 Prior Finnair has held senior

leadership positions at Nokia Siemens Networks and Nokia

Mar 2013 25

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SLIDE 26

Outlook

 Cargotec’s sales are expected to

be slightly below 2012 and

  • perating profit excluding

restructuring costs to be at 2012 level.

 Positive impact of efficiency

improvement measures implemented will be weighted on the second half of the year.

Mar 2013 26

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SLIDE 27

Appendices

Mar 2013 27

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SLIDE 28

Source: IHS Global Insight Feb 2013

Truck sales GVW over 15 ton - regions Sales growth GVW over 15 ton - regions

Macro indicator trends

Mar 2013 28

200 000 400 000 600 000 800 000 1 000 000 1 200 000 1 400 000

EMEA APAC AMERICAS Units 2008 2009 2010 2011 2012 2013 2014 2015 2016

  • 60%
  • 40%
  • 20%

0% 20% 40% 60% 80%

EMEA APAC AMERICAS 2008 2009 2010 2011 2012 2013 2014 2015 2016

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SLIDE 29

Macro indicator trends

Mar 2013 29

Source: Oxford Economics Q4/2012

200 400 600 800 1000 EMEA AMER APAC

Total Construction Output

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Billion EUR

60 80 100 120 140 160 180

  • 8
  • 6
  • 4
  • 2

2 4 6

APAC Construction Output

INDEX CHANGE (%)

y/y change (%) Index 2005 = 100

60 70 80 90 100 110 120

  • 8
  • 6
  • 4
  • 2

2 4 6

EMEA Construction Output

INDEX CHANGE (%)

y/y change (%) Index 2005 = 100

60 70 80 90 100 110 120

  • 12
  • 10
  • 8
  • 6
  • 4
  • 2

2 4 6 8

AMER Construction Output

INDEX CHANGE (%)

y/y change (%) Index 2005 = 100

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SLIDE 30

Macro indicator trends

Mar 2013 30

Drewry (Throughput TEU % change) Drewry (Throughput ’000 TEU units)

100 000 200 000 300 000 400 000 500 000 600 000

AMER EMEA APAC 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

  • 15,0 %
  • 10,0 %
  • 5,0 %

0,0 % 5,0 % 10,0 % 15,0 % 20,0 %

AMER EMEA APAC 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Source: Drewry Global Container Terminal Operators, Q3/2012 report

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SLIDE 31

Ship contracting forecast

Mar 2013 31

Source: Clarkson Shipbuilding forecast 9/2012

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SLIDE 32

Low gearing and strong liquidity 31 Dec 2012

 Gearing 38.8%  Net debt MEUR 478  Liquidity MEUR 509  Cash and cash equivalents

MEUR 209

 Unused and committed long-

term revolving credit facility of MEUR 300  Cargotec is well prepared financially for the coming years

Mar 2013 32

MEUR Repayment schedule of interest-bearing liabilities 259 96 6 3 95 72 168 40 80 120 160 200 240 280 2013 2014 2015 2016 2017 2018 2019-

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SLIDE 33

Services Truck-mounted forklifts Demountables Loader cranes Forestry cranes Tail lifts Stiff boom cranes

Hiab offering

Mar 2013 33

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SLIDE 34

Key competition with Hiab offering

Mar 2013 34

Knuckle-boom Cranes Demountables Truck-mounted Forklifts Forestry Cranes Tail Lifts Stiff boom Cranes

X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X

  • Hiab
  • Palfinger
  • Hyva
  • Fassi
  • Effer
  • HMF
  • Unic
  • Tadano
  • National
  • Meiller
  • VDL
  • Stellar
  • Shimaywa
  • D’Hollandia
  • Bär
  • Dautel
  • Anteo
  • Maxon
  • Tommy Gate
  • Manitou
  • Terberg Kinglifter
  • Chrisman
  • Donkey
  • Kesla
  • Prentice
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SLIDE 35

Terminal tractors Forklift trucks Reachstackers Straddle carriers Ship-to-Shore cranes RTGs, RMGs Services Spreaders

Kalmar offering

Mar 2013 35

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SLIDE 36

Key competition with Kalmar offering

Mar 2013 36

Ship-to- shore cranes Mobile harbour cranes RTG/RMG cranes Straddle/ Shuttle carriers Reach stackers Fork lift trucks Terminal tractors. AGVs Services Spreaders X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X

  • Kalmar
  • ZPMC
  • Konecranes
  • Terex/Gottwald
  • Sany
  • Liebherr
  • Mitsubishi
  • Mitsui
  • Kunz
  • TCM
  • CVS
  • Hyster Heavy
  • Taylor
  • Linde Heavy
  • Zoomlion
  • Tomac
  • Toyota
  • Sinotruk
  • Capacity
  • Terberg
  • Mafi
  • Stinis
  • RAM

X X X X X X X ASC carriers X X X X X X X X X X

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SLIDE 37

Link spans Ship cranes Securing Hatch covers RoRo Services Bulk loaders Offshore deck equipment

MacGregor offering

Mar 2013 37

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SLIDE 38

Key competition with MacGregor offering

Mar 2013 38

  • MacGregor
  • TTS
  • SMS (ex Seohae)
  • Iknow (ex Tsuji)
  • Kyoritsu
  • Nakata
  • IHI
  • Coops & Nieborg
  • Macor
  • Navalimpianti
  • Liebherr
  • Oriental Precision
  • Huisman
  • MHI
  • German Lashing
  • SEC
  • Taiyo
  • National Oilwell Varco
  • Rolls Royce
  • Aker Solutions (Pusnes)
  • Hatlapa
  • EMS-Tech
  • Seabulk
  • Oshima

Hatch covers Deck cranes Offshore winches Lashing equipment Services

X X X X X X X X (X) X X X X X X X X X X X X X X X X X X X X X X X (X) (X) (X) X X X X X (X)

RoRo equipment

X X X (X) X X X X X

Offshore ALH

X X X X X X X X

Self unloaders

X X X X

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SLIDE 39