Financial Statements Review 2007
January 31, 2008
President and CEO Mikael Mäkinen
y ,
1
Key issues in 2007• Year 2007 orders received grew by over 40% rising toYear 2007 orders received grew by over 40% rising to
EUR 4,106 (1-12/2006: 2,910) million. Q4 orders receivedrecord-high at EUR 1,214 (10–12/2006: 716) million.
• Sales grew by16% and rose to EUR 3,018 (1-12/2006: 2,597) million.
• Services development continued strong with sales growingby 32%.y
• Operating profit from operations excluding EUR 18.0 million one-off was EUR 221 1 (222 6) million representingmillion one-off was EUR 221.1 (222.6) million, representing7.3 (8.6) % of sales. Q4 accounted for 64.3 (10–12/2006: 57.8) million at 7.4 (8.3)% of sales.
January 31, 20082
Record-high order intake reflected lively marketRecord high order intake reflected lively market activity• Load handling equipment market in Europe and Asia
Pacific very buoyant while U.S. demand weak.
• Container handling equipment demand was healthy. In particular, reachstacker demand grew.
• Demand for marine cargo handling and offshoresolutions was record highsolutions was record-high.
• Demand for services remained favourable throughoutthe year.
January 31, 20083
Order intakeMEUR
+41 %3 5004,0004 ,500 4,106
1 8482,337 2,385
2,910
2,5003,0003,500
+70%716
1,214
1,848
1 0001,5002,000
716
0500
1,000
2003 Pro forma
2004 Pro forma
2005 Pro forma
2006 2007 10-12/06 10-12/07
January 31, 20084
Order book rose again to new recordMEUR
2 8653 000 2,865
2,500
3,000
1,219 1,257
1,621
1,500
2,000
807
1,219
500
1,000
0
500
January 31, 20085
*Pro forma
Sales growth continuedMEUR
+16 %3,018
2 3582,5972,800
3,200
1,6581,900
2,358
2,000
2,400
+25 %697 868
1,200
1,600
697
400
800
02003
Pro forma2004
Pro forma2005
Pro forma2006 2007 10-12/06 10-12/07
January 31, 20086
Geographical sales growth – fastest growth in AsiaAmericas Asia PacificEMEAMEUR
+23 %
1 368
1,677
1,500
1 ,800
1 ,072
1 ,335 1,368
1,200
,
+37%-10 %
620720
647 695900
476 509352 403
300
600
02004* 2005* 2006 2007 2004* 2005* 2006 2007 2004* 2005* 2006 2007
January 31, 20087*Pro forma
Services grew by 32% y-on-y representing 25% of g y y y p gsales
Hiab MacGREGORKalmarMEUR Cargotec total
+32%
+31 %
+49 %+21 %
January 31, 20088*Pro forma
Operating profitMEUR
240
195 22315
18
20318200
250221
179124
15 203
150
8558
1850
10064
468
0
50
2003 2004 2005 2006 2007 10 12/06 10 12/07
One-off items
2003 Pro forma
2004 Pro forma
2005 Pro forma
2006 2007 10-12/06 10-12/07
January 31, 20089
Operating profit from operations by business area
Pro forma
73.819.1 86.6
MEURHiab
Pro forma200510-12/2007 2007
22.7
10-12/2006
66.7
2006
7.9%
105.5*7 9%*
7.8%
26.9*7 4%*
9.5%
111.89 3%
%
Kalmar %
9.5%
28.38 8%
7.9%
97.88 5%7.9%*
59.47.9%
7.4%*
22.38 6%
9.3%
36.17 5%
%
MacGREGOR%
8.8%
9.77 0%
8.5%
27.67 5%7.9%
(17.5)
8.6%
(4.0)
7.5%
(11.9)
%
Group admin, others
7.0%
(2.9)
7.5%
(12.3)
221.1*7.3%*
64,3*7.4%*
222.6**8.6%**
Cargotec total%
57.88.3%
179.87.6%
*Excluding a one-off cost of EUR 18 million in Kalmar business area related to a container
January 31, 200810
gspreader inspection program **Excluding capital gain
Operating profit analysisOperating profit analysis
C bl fit
2007 2006
234 4 225 9Comparable oper .profit
Hiab factory closure costPPA
234.4 225.9
(9 9) (3 3)
(3.3) - • Closure cost of Dutch factory
• Purchase price allocation treatmentPPAOper. profit from operations:
of whichHiab 73.8 86.6
(9.9) (3.3)221.1 222.6
p
• U.S. market weak
of which Kalmar
of which MacGREGOR
105.5 111.8
59.4 36.1
• R&D investments• Expansion of service network through
acquisitions
group admin cost
One-off cost
(17.5) (11.9)
(18.0) -
• Development of global network and knowledge
• Bromma container spreader inspection
One-off capital gain
Operating profit 203.1 240.4
- +17.8programme
• Capital gain from real estate sale
18.10.200711
Earnings per share (basic)EUR
2.57
2 11 2 37 2 172,50
3,00
2.11
1 201,90
2,37 2,17
1 50
2,00
0,610,81
1,20
0 45
1,00
1,50
0,610,45
0,00
0,50
2003 Pro forma
2004 Pro forma
2005 Pro forma
2006 2007 10-12/06 10-12/07
January 31, 200812
Capital gain
Cash flow from operating activities before financialCash flow from operating activities before financial items and taxes
MEUR
January 31, 200813
Key figures
Pro formaPro forma2007 2006 2005
Basic earnings per share EUR 2.17 2.57 2.11 Equity per share EUR 14.29 13.72 11.93 Interest-bearing net debt MEUR 303.6 107.5 120.5
Total equity/total assets % 38.3 47.6 46.2 Gearing % 33.9 12.3 15.7 Gearing % 33.9 12.3 15.7 Return on equity % 15.6 20.2 19.2 Return on capital employed % 16.8 23.1 20.9
January 31, 200814
Acquisitions completed in 2007Acquisitions completed in 2007• Services company Tagros in Slovenia • Berger sales service installation network in Eastern EuropeBerger sales, service, installation network in Eastern Europe• Sales and services company Truck och Maskin i Örnsköldsvik in Northern
SwedenI d t k i di t ib ti d i BG C i A t li• Increased stake in distribution and services company BG Crane in Australia
• U.S. services company PES for ports and intermodal terminals• Manufacturing base in India through Indital• Offshore and sub-sea load handling systems company Hydramarine in Norway• Plimsoll in Singapore focused on offshore deck equipment• Kalmar Asia Pacific minority stake• Kalmar Asia Pacific minority stake• Kalmar distributor Kalmar España in Spain • Offshore service company Vestnorsk Hydraulikkservice in Norway• Component and steel structure manufacturer Balti in Estonia • U.S. services company Bay Equipment Repairs• Port automation technology company Advanced Cargo
January 31, 200815
Port automation technology company Advanced CargoTranshipment in the Netherlands
Key 2007 achievements in Cargotec’s developmentGrowth in Services Asian sales growth
Investments in R&DExpansion of global presence
January 31, 200816
On the Move to support strategy implementation
• The programme is aimed at taking advantage of Cargotec’sThe programme is aimed at taking advantage of Cargotec sknowledge and scale by establishing a way of working that supports the change in the Company’s business environment in which the share of services and emerging markets is increasing.
• Change programme will be lead by Deputy CEO Kari Heinistö.g p g y p y
• Cargotec’s strong order book and growth enable transforming the way of working as part of continuous development of operationsof working as part of continuous development of operations.
• A profitability improvement of EUR 80-100 million is targeted through the change programme Essential in the improvement target isthe change programme. Essential in the improvement target is enabling profitable growth through a more efficient structure and way of working.
January 31, 200817
g
Outlook
• Investments in the strategic development of Cargotec will continue and• Investments in the strategic development of Cargotec will continue and growth in services is expected to remain strong.
B d th d hi h d b k t th b i i f th• Based on the record-high order book at the beginning of the year management estimates sales growth in 2008 to be at the year 2007 level.
• General market activity and Cargotec's orders received are expected to continue healthy although in MacGREGOR the achievement of the exceptionally high order intake level of 2007 is a stretchexceptionally high order intake level of 2007 is a stretch.
• Operating margin in 2008 is expected to improve from the 2007 level.
• The U.S. market continues weak without yet any signs of improvement.
January 31, 200818
Questions & Answers
• Mr. Mikael Mäkinen, President and CEO
Mr Kari Heinistö Dep t CEO• Mr. Kari Heinistö, Deputy CEO
• Ms Eeva Mäkelä CFO as of Feb 1 2008• Ms. Eeva Mäkelä, CFO as of Feb 1, 2008
• Ms. Tiina Naumanen, Group ControllerMs. Tiina Naumanen, Group Controller
January 31, 200819
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