Handelsbanken Nordic Mid/Small Seminar Stockholm 3 June …...Highlights of January–March Orders...

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Transcript of Handelsbanken Nordic Mid/Small Seminar Stockholm 3 June …...Highlights of January–March Orders...

Handelsbanken Nordic Mid/Small Seminar – Stockholm 3 June 2015

Mika Vehviläinen, President and CEO

39%

32%

29%

32%

44%

24%

Cargotec’s business basics

May 2015 3

Geographical split

of sales in 1-3/2015

Services share of sales

in 1-3/2015

Order to delivery lead

time

EMEA

APAC

AMER

22% 12-24 months

EMEA

APAC

AMER

24% 2-4 months

EMEA

APAC

AMER

27% 6-9 months

MacGregor

EMEA APAC AMER

Kalmar Hiab

Cargotec sales split

in 1-3/2015

Cargotec geographical

split of sales in 1-3/2015

MacGregor

Kalmar

Hiab

Contracting forecast reflects imbalance

in the ship market

02 04 06 08 10 12 14 16 18 20 22 24 * 15 16 17 18 19 20 21 22 23 24 25 26 27

May 2015 4

Long-term contracting 2002–2024

0

1,000

2,000

3,000

4,000

5,000

6,000

ship nos

History Forecast

Source: Clarkson Newbuilding Market Forecast, April 2015

Long-term deliveries 1996–2027

0

500

1,000

1,500

2,000

2,500

ship nos

* 1996 – 2014 average

Mobile offshore unit contracting and

delivery forecast

02 04 06 08 10 12 14 16 18 20 02 04 06 08 10 12 14 16 18 20

May 2015 5

Long-term contracting 2002–2021

200

400

600

800

1,000

1,200

200

400

600

800

Long-term deliveries 2002–2021 ship nos ship nos

0 0

Source: Clarkson Offshore Newbuilding Market Forecast, April 2015

History Forecast History Forecast

Container throughput forecast illustrates that

Kalmar is in a growth business

359.2 374.9 397.8 423.3 450.9 480.7 512.9

168.7 173.6 180.4

188.5 197.6

207.5 217.8

94.1 95.6

99.1 102.5

108.0 114.0

119.0

0

200

400

600

800

1 000

2012 2013 2014 2015 2016 2017 2018

APAC EMEA AMER

May 2015 6

TEU ’000

Source: Drewry: Container forecaster Q3 2014 and Q1 2015, Base case, April 2015

621.9 643.3

677.4 713.2

756.5 802.2

849.6

+3.4% +5.3%

+5.3% +5.9%

+6.0% +5.9%

1,000

-60

-40

-20

0

20

40

60

80

EMEA AMER APAC

% Truck sales growth GVW over 15t, regions

2008 2009 2010 2011 2012

2013 2014 2015 2016

Two-fold market environment for Hiab

May 2015 7

Source: IHS Global Insight Q1-Q2/2015 forecast

60

65

70

75

80

85

90

95

100

105

110

-10

-8

-6

-4

-2

0

2

4

6

8

2005 2007 2009 2011 2013 2015

AMER Construction Output

INDEX CHANGE (%)

y/y change (%)

Index 2005 = 100

60

70

80

90

100

110

120

-8

-6

-4

-2

0

2

4

6

2005 2007 2009 2011 2013 2015

EMEA Construction Output INDEX CHANGE (%)

y/y change (%)

Index 2005 = 100

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

May 2015 8

Cargotec financial targets for 2016

May 2015 9

Operating profit margin

(EBIT)

Return on capital

employed

(ROCE pre-tax)

Gearing Dividend

of earnings per share

Highlights of January–March

Orders grew 9% y-o-y and totalled EUR 939 (863)

million

With fixed currencies orders grew 2%

Order book strengthened 12% from 2014 year-end to

EUR 2,469 million

Sales grew 18% y-o-y to EUR 889 (751) million

With fixed currencies sales grew 10%

Operating profit excluding restructuring costs was EUR

52.3 (24.6) million or 5.9 (3.3)% of sales

Operating profit was EUR 51.3 (23.8) million

Cash flow from operations was EUR 51.6 (32.5) million

Savings measures initiated in MacGregor

May 2015 10

MacGregor Q1 – offshore orders still on

good level

Order intake declined 28% y-o-y to EUR

228 (315) million

Order book grew 10% from 2014 year-end

Sales grew 30% y-o-y to EUR 282 (217)

million

Profitability excluding restructuring costs

was 4.4%

Savings measures initiated

May 2015 11

315

228 217

282

3.6

4.4

0

2

4

6

8

10

0

100

200

300

400

Q1/14 Q2/14 Q3/14 Q4/14 Q1/15

Orders Sales Operating profit%*

MEUR %

*excluding restructuring costs

Kalmar Q1 – strong start for the year

Order intake increased 38% y-o-y to

EUR 455 (330) million

Order book strengthened 12% from 2014

year-end

Sales grew 21% y-o-y to EUR 395 (327)

million

Profitability excluding restructuring costs

was 7.4%

May 2015 12

330

455

327

395

3.4

7.4

-8

-6

-4

-2

0

2

4

6

8

10

0

100

200

300

400

500

Q1/14 Q2/14 Q3/14 Q4/14 Q1/15

Orders Sales Operating profit%*

MEUR %

*excluding restructuring costs

Hiab Q1 – profitability improved further

Orders grew 17% y-o-y to EUR 256

(218) million

Order book strengthened 22% from

2014 year-end

Sales were at comparison period’s level

at EUR 212 (208) million

Profitability excluding restructuring

costs was 9.0%

May 2015 13

218

256

208 212

6.4

9.0

0

2

4

6

8

10

0

50

100

150

200

250

300

Q1/14 Q2/14 Q3/14 Q4/14 Q1/15

Orders Sales Operating profit%*

MEUR %

*excluding restructuring costs

Sales by geographical segment by

business area

May 2015 14

MacGregor Kalmar Hiab

APAC 10% (11)

EMEA 30%

APAC 63 % (58)

Americas 7% (6)

APAC 21% (20)

EMEA 48%

Americas 42% (34) Americas 37% (28)

EMEA 42%

(36) (52) (55)

Return on capital (ROCE) improved towards

the >13% target level

9.5

5.9

2

4

6

8

10

12

14

16

2010 2011 2012 2013 2014 Q1/15

ROCE Operating profit margin %*

May 2015 15

%

ROCE, annualised

* excluding restructuring costs

Outlook

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).

May 2015 16