Finnish Industrial Days in Singapore - Cargotec - October 31st 08.30 - PowerPoint PPT Presentation

Finnish Industrial Days in Singapore - Cargotec - October 31st 08.30 Welcome & opening Michel van Roozendaal, President, MacGregor 08.35 Peter Cederholm, President, Bromma 09.30 Transportation from Cargotec’s office to PSA port 10.00-11.30 PSA visit 11.30 Back to Cargotec office, transportation provided 12.00 Lunch and second presentation by Michel van Roozendaal, President, MacGregor 14.00 End of the event 21 May 2018 1

Cargotec optimises global cargo flows to create sustainable customer value and a better everyday

Cargotec - strong global player with a well-balanced business Sales: Sales split: new Sales by Sales by EUR 3,250 million equipment vs service business areas geographical area EBIT: 8.0% and software Service and Kalmar Kalmar MacGregor EMEA software 49% AMER 18% 44% Sales: EUR 1,598 million 33% 32% EBIT: 8.3% (EUR 133.1 million) Hiab Sales: EUR 1,084 million EBIT: 14.5% (EUR 157.2 million) Hiab MacGregor 33% APAC Sales: EUR 571 million 24% New equipment EBIT: 1.9% (EUR 10.6 million) 67% Strengths we are building upon Leading market positions Strong brands Loyal customers Leading in technology in all segments Figures have been restated according to IFRS 15 and are calculated by using the new definitions Figures: 2017 EBIT % excluding restructuring costs for the equipment, service and software businesses announced in March 2018

Bromma – clear market leader in spreaders

Contents Bromma in brief 1. Brand 2. Market and Business Drivers 3. Geographical Order Distribution 4. 2018 YTD Competitive landscape 5. Strategic focus areas 6.

Bromma in Brief ▪ Close to 10% of Kalmar total revenue ▪ Double digit EBIT margins ▪ Optimizing crane availability through innovative high quality products ▪ Spreaders and related services for port cranes and mobile equipment

Our Market consists of seaports and large riverports

The spreader might appear to be a relatively minor investment for a terminal. In terms of initial investment cost, it probably is. However, in the long run, the choice of spreader provider is a key to develop and maintain a high level of terminal productivity. If the spreader doesn’t work, the ship won’t sail.

Complete Spreader Portfolio Ship-To-Shore Yard Volume Value STS STS Yard Yard MHC Mobile Harbor Crane Mobile Equipment MHC MEQ MEQ

Brand and Market Share ▪ The most recognized and well-reputed brand in the spreader market – Quality (design, production and material) – Innovation – Environmental leadership – Swedish brand ▪ Market leading position – ~50% market share for crane spreaders – ~1/3 of world market of mobile equipment spreaders 10

Customer needs and expectations in 2021 Uptime / Productivity / Equipment Trusted partner reliability Deep long-term relationships Reduced costly downtime caused by Trust-based partnerships equipment breakdown (~30%-50% of quay crane breakdowns is spreader related) Improved productivity, thus less effect on vessel turnaround time Customer Environment Safety Environment hazards such as oil Injuries and fatalities to be avoided spillage, emission of CO2 addressed Address risk of falling hazards from Reduced power consumption spreaders

Global capacity increase drives our market (TEU) (TEU) 1,400,000 120,000 1,200,000 100,000 Capacity increase 1,000,000 80,000 800,000 Throughput 60,000 600,000 40,000 400,000 Capacity 20,000 200,000 0 0 12 Source: Drewry - ARGCTO 2018

Replacement market is smoothening out cycles (TEU) Capacity increase 120,000 100,000 Annual capacity 80,000 1. 2 addition 60,000 Replacement of 2. 1 spreaders 40,000 purchased 12-15 20,000 years ago 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 13

Replacement share of total market is growing Order Channel Distribution 100% 90% ▪ Increasing share of direct Terminal 80% 70% Operator orders 60% ▪ Intensified customer interaction 50% 40% ▪ Equipment replacement, upgrade 30% or refurbishment 20% 10% 0% 2007 2010 2012 2015 2017 2018(YTD) Direct OEM

Bromma is to significantly improve our market position in APAC while sustaining our leading positions in EMEA and AMERICAS.

Global reach with strong local presence Orders Received Jan-Sep 2018 (excl MHC OEM)

Competitors  ZPMC  Our biggest customer!  China based  RAM  Singapore based / China production  Innovation challenger  Stinis  Holland based / NL & Malaysia production  Different spreader design

Strategic Focus Areas Continue to strengthen our market position in APAC and Greater ▪ China Sustain our strong position in Americas and EMEA ▪ Capture the spreader replacement market ▪ Develop digital solutions and services around the core products ▪ Secure Bromma’s connectivity in the digitalized ”systems -of- ▪ systems ”

Summary Clear Market Leader in Spreaders ▪ Strong Brand built on Innovation and Quality ▪ Global reach with a strong local presence ▪ The Spreader - Key in the logistic flow ▪ Strategic intention to grow in APAC ▪ The Replacement market requires and enables a more intensified ▪ customer interaction

MacGregor - the leader in intelligent cargo and load handling Michel van Roozendaal, President

Contents MacGregor in brief and recent progress Strategic focus 2019 - 2021 Strengthening presence in Asia M&A activity update MacGregor, Helsinki 21 May 2018 22

MacGregor in brief and recent progress

A leader in all maritime segments ~3/4 of sales ~1/4 of sales Merchant Marine Marine Resources Naval Logistics Offshore Cargo Flow People Flow & Structures and Operations Energy  Container cargo  Ferry  Research  Naval & Military  Oil & Gas  Bulk cargo  Cruise  Fishery  Renewables Supplies Logistics  General cargo  Superyachts  Aquaculture  Naval & Military  Liquid cargo  Walk-to-work  Mining Operations Support  RoRo cargo  Floating structures  Ship-to-ship transfer Lifecycle Services Picture: Statoil

Services and solutions for Merchant and Offshore vessels Hatch covers, RoRo access Port and terminal Marine Offshore load Cranes container lashings equipment solutions selfunloaders handling Fishery and Bow loading Steering gear Deck machinery Offloading systems Mooring systems research systems

Orders received increased slightly in Q3 Orders received increased by 2% MEUR Q3/18 Q3/17 Change  2017 comparitive period included a Orders 141 139 +2% large single order of approximately received EUR 25 million Order book 513 511 +0%  Service orders +8% Sales 114 +14% 130 Sales increased +14% Operating 0.3 2.9 -89% profit*  Service sales +5% Operating 0.2% 2.5% -231bps Operating profit* decreased due to: profit margin*  M&A and integration related costs of approximately EUR 1.5 million  Low capacity utilisation in certain product areas Year 2017 figures have been restated according to IFRS 15 *) Excluding restructuring costs

AMER Q3 LTM figures 12% EMEA 40% Geographical split of sales** MEUR Q3 2018 LTM** Orders received 521 APAC 49% Order book 513 Sales 530 Cargo handling Operating profit* 4.3 Services 25% 39% Operating profit margin* 0.8% Sales mix** Personnel (Q3/18 end) 1,884 RoRo 11% Advanced Offshore Solutions*** 25% * Excluding restructuring costs ** LTM = Last 12 months (Q4 2017 – Q3 2018) *** Including Rapp Marine Group figures, consolidated from the beginning of February 2018

Actions being taken to return operating profit to growth 5.2% MEUR MEUR 2.6%  Reduced full-time equivalents by 170 60 53.9 1,200 1,139  Operations reorganised 1,034 50 2.3%  Savings of EUR 8 million to end Q3/2018; 1,000 all planned actions completed 40 778 1.9% 800  0.8% Continued focus on growing service revenues 30.1 30 571 through aftermarket capture and new offerings 600 530  Low market environment sustained for longer 17.9 20 400 than industry-authority expectation 10.6 10  200 Actions taken to safeguard profitability and will 4.3 potentially take further action 0 0 2014 2015 2016 2017 Q3/18 LTM Operating profit* margin Sales (lhs) Operating profit** (rhs) *Excluding restructuring costs Year 2017 figures have been restated according to IFRS 15

Markets returning to growth but at a cautious pace Long term contracting 2015-2024 Long term contracting 2015-2024 Mobile offshore units Merchant ships > 2,000 gt No of units No of ships 1,000 2,500 Forecast Forecast 900 Annual average 1996-2017: 800 2,000 1760 vessels 700 Annual average 2007-2017: 560 units 600 1,500 500 400 1,000 300 200 500 100 0 0 Avg. 07-17 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Avg. 96-17 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Source: Clarksons, September 2018