2006 Financial Statements Review President and CEO Mikael Mkinen - PowerPoint PPT Presentation

2006 Financial Statements Review President and CEO Mikael Mäkinen January 30, 2007 1

Key financials for 2006 • Orders received grew significantly and reached MEUR 2,910 (pro forma 2005: 2,385). Q4 order intake was MEUR 716 • Net sales grew by 10% and totaled MEUR 2,597 (2 358) • Operating income from operations rose markedly to MEUR 221.7 (179.4), representing 8.5 (7.6)% of net sales • Operating income including MEUR 17.8 capital gain recorded in July from the divestment of property totaled MEUR 239.5 (MEUR 194.8 incl. MEUR 15.4 milj. capital gain from Consolis) • Board’s dividend proposal to AGM on Feb 26, 2007 is EUR 1.00 per class B and EUR 0.99 per class A share 2 January 30, 2007

Strategic development during 2006 • Cargotec’s vision and strategic priorities were defined during autumn – Cargotec’s strategy is based on profitable growth in developing and consolidating markets – Focus is on expanding the business especially in Asia Pacific and Americas – Within services the target is a leading position – Utilization of know-how and scale benefits in technology development and global network – More investment in personnel development • Executive Board was strengthened • Global sales and service network was expanded • Hiab and Kalmar invested in increasing flexibility of operations in production units 3 January 30, 2007

Acquisitions during 2006 • Tail lift manufacturer AMA in Poland • Port services company ECC in U.S. East Coast and Gulf • BMH Marine dry bulk handling equipment on ships and at port terminals • Service company Grampian Hydraulics for support vessels • Kalmar distributor and service company ANE in South Africa • Distribution and service company Catracom in Belgium Total 2006 effect on sales approx. MEUR 50 and on personnel 465 • Distribution and service company Kalmar España in Spain* • Container handling equipment and service company CVS Ferrari in Italy* 4 January 30, 2007 *Require competition authority approval

Business environment was favourable… • Global economy and world trade developed strongly • Container traffic volumes continued to grow • Shipbuilding on high level at ship yards • Demand for load handling equipment strong despite levelling off in U.S. building materials supply • Healthy demand for services 5 January 30, 2007

… influencing Cargotec’s orders received • Hiab – Demand for load handling equipment was buyoant, especially for loader cranes in Europe • Kalmar – Record demand for reach stackers, while markets for yard cranes, straddle carriers and terminal tractors were also very good – Healthy demand for heavy industrial handling equipment • MacGREGOR – Markets for hatch covers, ship cranes and cargo securing equipment buoyant – High demand for RoRo systems – Bulk handling equipment markets strong 6 January 30, 2007

Growth in orders received continued in Q4 MEUR 2,910 3,000 +22% 2,385 2,500 2,337 1,848 2,000 1,500 1,000 +21% 716 591 500 0 2003 Pro 2004 Pro 2005 Pro 2006 10-12/05 10-12/06 forma forma forma 7 January 30, 2007

Order book at record level MEUR 1,800 1,621 1,594 1,544 1,439 1,500 1,345 1,287 1,281 1,257 1,219 1,173 1,200 1,123 897 807 900 600 300 0 * * * * * * 5 5 5 6 6 6 6 3 4 4 4 4 5 0 0 0 0 0 0 0 0 0 0 0 0 0 . . . . . . . 6 9 2 3 6 9 2 . . . . . . 2 3 6 9 2 3 1 1 . . . . . 0 0 1 0 0 1 1 . . . . . . 1 0 0 1 1 3 3 1 3 3 3 . . 1 1 3 3 3 3 3 3 3 3 *Pro forma 8 January 30, 2007

Net sales growth continued - Q4 sales record high MEUR 2,800 2,597 +10% 2,358 2,400 1,900 2,000 1,658 1,600 1,200 697 800 +12% 622 400 0 2003 Pro 2004 Pro 2005 Pro 2006 10-12/05 10-12/06 forma forma forma 9 January 30, 2007

Geographical development of net sales EMEA Americas Asia Pacific MEUR 1,500 +2% 1,368 1,335 1,200 1,072 900 720 +16% 620 600 509 476 +26% 403 352 300 0 2004* 2005* 2006 2004* 2005* 2006 2004* 2005* 2006 *Pro forma 10 January 30, 2007

Services grew by 16% y-on-y representing 22% of net sales Hiab Kalmar MacGREGOR % of net sales MEUR % 350 50 311 300 267 40 250 223 30 200 150 134 128 20 116 110 109 95 100 10 50 0 0 2004* 2005* 2006 2004* 2005* 2006 2004* 2005* 2006 *Pro forma 11 January 30, 2007

Operating income improved markedly MEUR 250 240 18 195 222 200 15 179 150 124 100 85 68 58 15 50 53 0 2003 Pro 2004 Pro 2005 Pro 2006 10-12/05 10-12/06 forma forma forma Capital gain on property Capital gain on Consolis 12 January 30, 2007

Operating income from operations by business area Pro forma Pro forma MEUR 10-12/2006 10-12/2005 2006 2005 2004 Hiab 22.7 20.1 86.0 44.6 66.6 % 9.5% 9.4% 8.7% 6.4% 7.9% Kalmar 28.2 111.7 27.0 97.6 66.4 8.8% 9.4% 9.3% 7.7% % 8.5% 9.7 35.9 8.5* 27.5 20.9 MacGREGOR 7.0% 8.2%* 7.5% 6.2% 7.5% % 57.7 52.7* 221.7 123.9 Cargotec total 179.4 8.3% 8.5%* 8.5% 6.5% 7.6% % *Excluding impact of the final accounting of MacGREGOR acquisition 13 January 30, 2007

Earnings per share (basic) EUR 3.00 2.57 2.50 2.11 2.00 1.50 1.20 1.00 1.00 0.81 39% of 0.50 earnings 0.00 2003 Pro 2004 Pro 2005 Pro 2006 Dividend forma forma forma proposal for class B share 14 January 30, 2007

Cash flow from operating activities before financial items and taxes MEUR 300 250 250 194 200 158 147 150 100 50 0 2003 Pro 2004 Pro 2005 Pro 2006 forma forma forma 15 January 30, 2007

Key figures Pro forma Pro forma 2006 2005 2004 Earnings per share EUR 2.57 2.11 1.20 Equity per share EUR 13.72 11.93 10.17 Interest-bearing net debt MEUR 107.5 120.5 281.4 Total equity/total assets % 47.6 46.2 42.2 Gearing % 12.3 15.7 43.0 Return on equity % 20.2 19.2 12.6 Return on capital employed % 23.1 20.9 12.9 16 January 30, 2007

New financial targets published on Jan 17, 2007 Annual net sales growth exceeding 10 percent (incl. acquisitions) Raising the operating income margin to 10 percent Gearing below 50% Dividend 30-50% of earnings per share 17 January 30, 2007

Strategy implementation continues in 2007 Focus areas are: • Development and expansion of services • R&D investments • Personnel development • Improving efficiency of sourcing • Continued growth of global network Acquisitions have continued: • Service company Tagros in Slovenia • Berger sales and distribution network in Eastern Europe* • Sales and service company Truck och Maskin i Örnsköldsvik in Northern Sweden** • Increased equity stake in distribution and service company BG Crane in Australia *Requires completion of due diligence ** Requires competition authority approval 18 January 30, 2007

Outlook • Cargotec’s market outlook for 2007 is positive. • The high market activity and strong order book in all business areas give a good start for the year. • Completed and targeted acquisitions will support further sales growth. • Operating income from operations in 2007 is expected to continue to increase although the operating margin development will be slightly affected by planned investments in future growth. 19 January 30, 2007