Annual General Meeting 18 March 2015 President and CEO Mika - - PowerPoint PPT Presentation

Annual General Meeting 18 March 2015

President and CEO Mika Vehviläinen

Achievements

18 Mar 2015 3

 Profit improvement programmes had a positive impact in Kalmar and Hiab  Successful acquisitions in MacGregor  Reorganisation programme launched in MacGregor  Development of business control environment

Challenges

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 Cost overruns in Kalmar projects  MacGregor market environment  Operational development not ready

2014 events

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 Major orders  Product launches  Investment in Poland

Major orders in 2014

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Port automation project, Melbourne, Australia More than 400 Ottawa terminal tractors, North America 559 demountables and 237 loader cranes, Australia Loader cranes and related services order, UK Optimised cargo handling systems for seven container vessels, South Korea Deck handling equipment for six anchor handling tug supply vessels, Norway

MacGregor service – productivity care

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Kalmar Ottawa terminal tractor and electric forklift for industrial applications

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HIAB S-HiPro 130 crane designed for waste handling

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Revolutionary and environmentally sound pre- treatment and paint process, nDurancenTM

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Hiab’s factory in Poland opened

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Order book grew 11 percent

2,356 2,426 2,021 1,980 2,200 2,729 3,233 3,058 3,307 3,599 2010 2011 2012 2013 2014 Order book Orders received

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MEUR 3,000 4,000 2,000 1,000

Sales grew six percent

2,575 3,139 3,327 3,181 3,358 2010 2011 2012 2013 2014

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MEUR

13

3,000 4,000 2,000 1,000

Operating profit margin increased to 4.4 percent

5.5 6.6 4.7 4.0 4.4 2 4 6 8 2010 2011 2012 2013 2014

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%

14

excluding restructuring costs

MacGregor – profitability burdened by one-off items and low delivery volume in merchant ships

 Orders received grew 20% from 2013  Contribution of acquired

businesses EUR 121 million

 Order book grew 15% from 2013  Sales grew 30% from 2013  Contribution of acquired

businesses EUR 61 million

 Profitability 5.2% excluding

restructuring costs

 PPA depreciation and amortisation

EUR 10.0 million

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361 304 218 301 6.6 8.0

2 4 6 8 10 100 200 300 400 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Orders Sales Operating profit % MEUR %

* excluding restructuring costs

Kalmar – profit improvement measures had a positive impact on operating profit

 Orders received grew 4% from 2013  Sales declined 4% from 2013  Profitability 3.8% excluding restructuring costs  Cost overruns in projects EUR 52 million

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357 378 468 452 5.5 7.6

• 8
• 6
• 4
• 2

2 4 6 8 10 100 200 300 400 500 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Orders Sales Operating profit % MEUR %

* ilman uudelleenjärjestelykuluja

Hiab – operating profit clearly improved as a result of actions taken to improve profitability

 Orders received grew 5% from 2013  Sales were at 2013 level  Profitability 7.3% excluding restructuring costs

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241 232 229 211 1.7 8.4

1 2 3 4 5 6 7 8 9 50 100 150 200 250 300 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Orders Sales Operating profit % MEUR %

* excluding restructuring costs

Cargotec’s must wins 2013–2014

Converting Hiab’s high business potential into profitability Creating solid platform for growth through successful integration of acquisitions in MacGregor Safeguarding competitiveness in mobile equipment in Kalmar Driving services offering development and growth in MacGregor and Kalmar Driving growth in automation in Kalmar

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Cargotec’s must wins 2015–

Driving Hiab to best in class profitability and capital return Driving MacGregor profitability over the cycle through better effectiveness Safeguarding competitiveness in mobile equipment in Kalmar Driving services offering development and growth in MacGregor and Kalmar Driving growth in automation in Kalmar

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Outlook

 Market outlook  Cargotec’s 2015 outlook published on

10 February still valid:

 Cargotec’s 2015 sales are expected

to grow from 2014 (3,358 MEUR).

 Operating profit excluding

restructuring costs for 2015 is expected to improve from 2014 (149.3 MEUR).

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Cargotec financial targets for 2016

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

• f earnings per share

Future of cargo handling relies on smart sustainability and digitalisation

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Our market leading brands guarantee the highest value for our customers

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