Annual report - Cargotec · PDF fileof the exceptionally weak shipbuilding markets that we...
Transcript of Annual report - Cargotec · PDF fileof the exceptionally weak shipbuilding markets that we...
Annual report 2014
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ContentsCEO's reviewCEO's review
Cargotec in 2014Cargotec in brief
Key ratios
Strategy
Financial targets
Sustainability
Governance
Risk management
Information for investors
Contacts
Business areas in 2014MacGregor
Strategy and main events 2014
Kalmar
Strategy and main events 2014
Hiab
Strategy and main events 2014
FinancialsBoard of Directors report
Consolidated financial statements (IFRS)
Consolidated statement of income and consolidated statement of comprehensive income
Consolidated balance sheet
Consolidated statement of changes in equity
Consolidated statement of cash flows
Notes to the consolidated financial statements (IFRS)
1. Accounting principles for the consolidated financial statements
2. Estimates and judgements requiring management estimation
3. Financial risk management
4. Segment information
5. Acquisitions and disposals
6. Long-term construction contracts
7. Other operating income and expenses
8. Restructuring costs
9. Personnel expenses
10. Depreciation, amortisation and impairment charges
11. Financing income and expenses
12. Income taxes
13. Earnings per share
14. Goodwill
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14. Goodwill
15. Other intangible assets
16. Property, plant and equipment
17. Investments in associated companies and joint ventures
18. Available-for-sale investments
19. Deferred tax assets and liabilities
20. Inventories
21. Financial instruments by category
22. Accounts receivable and other non-interest-bearing receivables
23. Cash and cash equivalents
24. Equity
25. Share-based payments
26. Interest-bearing liabilities
27. Employee benefits
28. Provisions
29. Accounts payable and other non-interest-bearing liabilities
30. Derivatives
31. Commitments
32. Group as lessor
33. Related-party transactions
34. Subsidiaries
35. Events after the balance sheet date
Financial statements of the parent company (FAS)
Parent company income statement
Parent company balance sheet
Parent company cash flow statement
Notes to the parent company financial statements
1. Accounting principles for the parent company financial statements
2.-7. Notes to the income statement
8.-10. Intangible and tangible assets
11. Investments
12.-13. Receivables
14. Equity
15.-17. Liabilities and commitments
18. Derivatives
Key figures
Key financial figures
Share-related key figures
Calculation of key figures
Key exchange rates for the Euro
Shares and shareholders
Shares and share capital
Share price development and trading
Shareholders
Board and management shareholding
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Board authorisations
Share-based incentive programmes
Option programme 2010
Signatures for Board of Directors report and financial statements
Auditors Report
Dear reader,The past year was not a year of solid profit improvement, but it was one of solid progress.
Even though the overall financial results for 2014 were below our expectations, with 2014 in mind, I have anincreasing confidence in our capabilities to meet our future targets.
At the close of the year, the figures in terms of operating profits for both Hiab and Kalmar show that our profitimprovement programmes are delivering. The good progress in Kalmar was masked by a very large cost overrunin one of Kalmars projects; this occurred during the first half of the year. MacGregors profitability decreased fromthe previous years due to lower volumes and the tougher competitive environment we faced. These are a resultof the exceptionally weak shipbuilding markets that we have seen in the past few years. To facilitate efforts toincrease our profitability over the cycle, we launched a number of programmes in MacGregor during autumn2014.
The year also saw us making solid progress in improving our business control environment. The coverage of ourHiab and Kalmar common frontline enterprise resource planning (ERP) is around 60 percent and we started tosee a return on business benefits from the heavy investments of the past years. For instance, in 2014 weintroduced a cloud-based system based on which all of our employee data is contained on one platform. Thisopens up potential new ways of building on our performance culture.
MacGregor initiated strategic programmesMacGregors year started out with a strong focus on integration and delivering the synergies after two importantacquisitions: Hatlapa and Aker Solutions mooring and loading systems unit. During the summer it becameevident that the global economy was not improving according to forecasts and the merchant shipping market wasnot progressing at the expected speed. In the autumn the decline in oil prices added uncertainty. However,certain market areas remained stable, such as the market for offshore cargo handling equipment. Thecontainership market outlook and demand for services also remained satisfactory, but overall year 2014 showeda need to improve MacGregors capabilities to keep up with the ever-changing market environment.
To address and facilitate the necessary development actions, MacGregor initiated strategic programmes duringthe second half of the year. These ongoing programmes aim to improve our top line by better solution selling andcross-selling activities as well as increasing our services revenues and profitability. The reorganisation ofMacGregor resulted into more customer-facing operations with better capabilities to drive effectiveness. This canbe achieved, for example, through design-to-cost and design-to-service initiatives and leveraging research anddeveloment (R&D) and engineering more effectively across the different business units. However, MacGregorsorder-to-delivery cycle being about two years it will take some time for its efforts to show their full force.
Kalmar is back in gearKalmars very significant loss in the second quarter of 2014 a major part of which related to a ship-to-shorecrane project sold in 2012 caused a serious setback to Kalmars otherwise good year.
Excluding this second quarters loss, Kalmars profitability improvement programme did well through the year, withgood results from actions relating to design-to-cost and new products introduced to the market in 2014, forinstance.
At the close of the year, Kalmar was where we envisioned we would be in terms of profitability and we are makingprogress according to plans.
CARGOTEC ANNUAL REPORT 2014 / CEO's review 1
Presently, there are over half a million Hiab cranesinstalled around the globe. Over one hundredthousand Kalmar mobile equipment move cargo.Every second ship in the world has MacGregorequipment on it.
Hiab took a big leap forward In 2014, Hiab set an example for the rest of Cargotec. Profit improvement advanced well and although thereobviously remains significant room for improvement at Hiab, I have full confidence that it is on a winning track.
Hiab made solid progress in several profit acceleration areas: route-to-market actions, pricing, services includingspare parts and supply development. This includes the restructuring of Hiabs operations at Hudiksvall in Swedenand expanding the facilities in Poland with a new paint shop, which bases its new sustainable pre-treatment andpaint process nDurance on nanotechnology.
Hiabs profit acceleration programme will continue in 2015. There will be some changes in the programmes focusareas, as Hiabs development efforts are advancing well and creating results ahead of schedule.
Cargotec at the close of 2014: making progress in our must-win battles2014 was a year of hard work and much progress, despite momentary setbacks and varied market situationsaround the globe. Growth picked up in certain markets such as North America, while others remained flat, or quitemixed, such as in Europe.
Looking at the results of all three business areas, it is clear our profit improvement actions are seeing significantprogress, and we are advancing in the must-win battles mapped in our strategy. I want to sincerely thank all ofour employees, as they have worked hard to get us to where we are at present.
The next chapter in Cargotecs future historyCargotec has a unique position and extremely strong market position in the key parts of the cargohandling industry. Presently, there are over half a million Hiab cranes installed around the globe. Over onehundred thousand vehicles have Kalmars mobile equipment. Every second ship in the world has MacGregorequipment on it.
Cargotecs brand leadership is grounded on in-depth knowledge and understanding of our industries andextremely strong customer relations. Our customer satisfaction ratings tell a story of stellar relationships andattachments to our brands. In mos