Cargotec financials Eeva Sipil Executive Vice President, CFO - PowerPoint PPT Presentation

18 November 2014 Cargotec financials Eeva Sipilä Executive Vice President, CFO

January – September key figures Q1-Q3/14 Q1-Q3/13 Change 2013 2012 Orders received, MEUR 2,685 2,348 14% 3,307 3,058 Order book, MEUR 2,327 2,048 14% 1,980 2,021 Sales, MEUR 2,395 2,267 6% 3,181 3,327 Operating profit, MEUR* 77.8 87.9 126.5 157.5 Operating profit margin, %* 3.2 3.9 4.0 4.7 Cash flow from operations, MEUR 120.3 47.0 180.9 97.1 Interest-bearing net debt, MEUR 835 577 578 478 Earnings per share, EUR 0.48 0.77 0.89 1.45 * excluding restructuring costs 18 Nov 2014 2

Cargotec’s book-to-bill – healthy 2014 development in turbulent environment MEUR 1,000 800 600 400 200 0 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Orders Sales 18 Nov 2014 3

Cargotec’s profit generation by business area – targeting improvement and better balance MEUR % 60 7 50 6 40 5 30 4 20 10 3 0 2 -10 1 -20 -30 0 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 MacGregor Kalmar Hiab Corporate costs Cargotec operating profit% excluding restructuring costs 18 Nov 2014 4

Restructuring costs from past few year’s efficiency improvement measures MEUR 30 24.0 25 20 15 12.6 10.4 9.9 10 7.1 5 3.2 2.7 0.8 0.4 0 MacGregor Kalmar Hiab 2012 2013 1-9/2014 18 Nov 2014 5

Cargotec hedges foreign exchange related transaction risk  Cargotec is a global company with Translation exposure 1-9/2014 operations in over 120 countries in different currency zones. All legal companies fully hedge their transactional foreign exchange (FX) risk (order book and B/S items) against their functional currencies.  FX translation risk (accounting risk) exists and is not hedged.  Economic risk relates to uncommitted cash flows or those from expected but not yet committed future product sales. This is managed by optimizing supply/sourcing footprint to sales mix. USD EUR NOK SEK Other 18 Nov 2014 6

Cargotec financial targets for 2016 Operating profit margin Return on capital (EBIT) employed (ROCE pre-tax) Gearing Dividend of earnings per share 18 Nov 2014 7

Operating profit margin – improvement in all BAs from current level to reach set target % 16 12 8 4 0 -4 -8 2008 2009 2010 2011 2012 2013 1-9/2014 Cargotec MacGregor Kalmar Hiab excluding restructuring costs 18 Nov 2014 8

Cargotec financial targets for 2016 Operating profit margin Return on capital (EBIT) employed (ROCE pre-tax) Gearing Dividend of earnings per share 18 Nov 2014 9

Return on capital employed (ROCE) raised as new financial target in Cargotec MEUR % 2,500 16 14 2,000 12 10 1,500 8 1,000 6 4 10.5 500 19.1 26.2 34.0 61.1 14.2 2 0 0 2008 2009 2010 2011 2012 2013 1-9/2014 Return (pre-tax) Capital employed Restructuring costs ROCE% ROCE% (excl. Restructuring costs) 18 Nov 2014 10

Operative ROCE in MacGregor – recent acquisitions have increased capital employed MEUR % 600 70 60 500 50 400 40 300 30 200 20 100 10 0 0 2012 2013 1-9/2014 Operating profit Operative capital employed (ext) ROCE % 18 Nov 2014 11

Operative ROCE in Kalmar – cost overruns have weighed heavily MEUR % 900 14 800 12 700 10 600 8 500 400 6 300 4 200 2 100 0 0 2012 2013 1-9/2014 Operating profit Operative capital employed (ext) ROCE % ROCE % excl. cost overruns 18 Nov 2014 12

Operative ROCE in Hiab – profitability improvement supporting returns MEUR % 500 8 7 400 6 5 300 4 200 3 2 100 1 0 0 2012 2013 1-9/2014 Operating profit Operative capital employed (ext) ROCE % 18 Nov 2014 13

Cargotec financial targets for 2016 Operating profit margin Return on capital (EBIT) employed (ROCE pre-tax) Gearing Dividend of earnings per share 18 Nov 2014 14

Cash flow from operations continues as key priority for Cargotec MEUR 350 293 290 300 250 200 181 166 150 134 120 97 100 50 0 2008 2009 2010 2011 2012 2013 1-9/2014 18 Nov 2014 15

Gearing and net debt/EBITA affected by disappointing Q2/14, focus on deleveraging post-acquisitions continues Gearing % Net debt/EBITA 80 40 35.9 68.3 70 35 55.3 60 30 46.7 50 25 39.2 38.0 40 20 25.6 30 15 20 10 7.4 5.2 3.2 16.0 10 5 2.6 1.3 1.2 0 0 08 09 10 11 12 13 1- 08 09 10 11 12 13 1- 9/14 9/14* * EBITA rolling 12 months 18 Nov 2014 16

Balanced debt portfolio from maturity structure and source point of view As of 30 Sep 2014: Repayment schedule of interest-bearing liabilities  Commercial bank loans 200 MEUR MEUR  Revolving credit facility 30 MEUR 280 (270 MEUR undrawn, maturity until Jan 2019) 240  Commercial papers 145 MEUR 200  Corporate bonds 304 MEUR  Loans from international 160 financial institutions 235 MEUR 120  Subsidiary loans and leasing liabilities 56 MEUR 80  Hatlapa capital loan of 40 MEUR 40 included in 30 Sep 2014 figures but repaid in October 0 2014 2015 2016 2017 2018 2019 2020- 18 Nov 2014 17

Cargotec financial targets for 2016 Operating profit margin Return on capital (EBIT) employed (ROCE pre-tax) Gearing Dividend of earnings per share 18 Nov 2014 18

Dividend pay-out history in line with policy of 30 – 50% of earnings per share MEUR 3.00 2.57 2.42 2.50 2.17 1.91 2.00 1.45 1.50 1.21 1.05 1.00 1.00 0.89 1.00 800% 0.72 0.61 0.60 39% 41% 48% 0.48 0.42 0.40 0.50 50% 31% 50% 0.05 47% 0.00 2006 2007 2008 2009 2010 2011 2012 2013 1-9/2014 EPS Dividend B share 18 Nov 2014 19

Corporate initiatives for 2015 – 2016 Continue rolling-out Corporate-wide Profitability and leveraging programme on control improvement actions systems platform and environment to continue in all tools to support better improve business business areas, with efficiency and performance and special focus on transparency deliver without returns and cash surprises generation/working capital