January-June 2006 Interim Report President and CEO Mikael Mkinen - PowerPoint PPT Presentation

January-June 2006 Interim Report President and CEO Mikael Mäkinen July 19, 2006 1

Key issues in April-June 2006 • Order intake continued at record levels as in the first quarter totaling EUR 786 (Q2/05: 571) million • Net sales grew by 8% and amounted to EUR 661 (612) million • Operating income rose to EUR 60.7 (48.2) million, equal to 9.2 (7.9)% of net sales. 1-6/2006 operating income margin was 8.8%. • Order book at end of June amounted to EUR 1,544 (Dec 31, 2005: 1,257) million • Expansion into dry bulk handling through acquisition of BMH Marine 2 July 19, 2006

Acquisition of BMH Marine expands MacGREGOR offering • Dry bulk handling equipment on ships and at port terminals • Net sales in 2006 expected to rise to close to EUR 70 million • Employs 140 people • Debt-free acquisition price approx. EUR 32 million • Transaction subject to competition authority approval 3 July 19, 2006

Market situation continued good • Global economy and world trade continued to grow • Container traffic volumes grew further • Ship building at ship yards at a high level • Construction activity strong in main markets in Europe and US • New truck registration brisk 4 July 19, 2006

Orders received increased markedly • Hiab –Orders for loader cranes, demountables and tail lifts grew strongly –Demand for forestry cranes leveled off • Kalmar –Demand high for container handling equipment and services –Heavy industrial handling equipment markets stable • MacGREGOR –Hatch cover, ship crane and cargo securing equipment markets continued lively –RoRo equipment demand for PCTCs was strong 5 July 19, 2006

Orders received MEUR 2,800 2,385 2,337 2,400 2,000 1,591 1,600 +31 % 1,216 1,200 786 +38 % 800 571 400 0 2004 Pro 2005 Pro 1-6/05 Pro 1-6/06 4-6/05 Pro 4-6/06 forma forma forma forma 6 July 19, 2006

Order book MEUR 1,800 1,544 1,439 1,500 1,345 1,287 1,281 1,257 1,219 1,173 1,123 1,200 897 807 900 600 300 0 * * 5 * * * * 5 5 6 6 3 4 4 4 4 5 0 0 0 0 0 0 0 0 0 0 0 . . . . 6 9 2 3 . . . . . . . 6 2 3 6 9 2 3 . . 1 . 0 0 . 1 1 1 . . . . . 0 1 0 0 1 3 3 1 3 . . 3 1 3 3 3 1 3 3 3 3 *Pro forma 7 July 19, 2006

Net sales MEUR 2,800 2,358 2,400 1,900 2,000 1,600 1,275 1,162 +10 % 1,200 661 800 612 +8 % 400 0 2004 Pro 2005 Pro 1-6/05 Pro 1-6/06 4-6/05 Pro 4-6/06 forma forma forma forma 8 July 19, 2006

Geographical development of net sales EMEA Americas Asia Pacific MEUR 1,500 1,335 1,200 1,072 900 684 673 620 600 476 403 365 352 268 300 226 222 1-6 1-6 1-6 0 2004* 2005* 1-6/06 2004* 2005* 1-6/06 2004* 2005* 1-6/06 *Pro forma 9 July 19, 2006

Services continued to grow Hiab Kalmar MacGREGOR % of net sales MEUR % 300 50 267 250 40 223 200 30 150 150 116 126 110 109 20 95 100 65 59 58 54 10 50 1-6 1-6 1-6 0 0 2004* 2005* 1-6/06 2004* 2005* 1-6/06 2004* 2005* 1-6/06 *Pro forma 10 July 19, 2006

Operating income MEUR 210 179 180 150 124 112 120 85 90 61 60 48 30 0 2004 Pro 2005 Pro 1-6/05 Pro 1-6/06 4-6/05 Pro 4-6/06 forma forma* forma forma *Excluding EUR 15.4 million capital gain on sale of Consolis 11 July 19, 2006

Operating income by business area MEUR 4-6/2006 4-6/2005* 1-6/2006 2005* 2004* Hiab 23.4 18.2 45.9 44.6 66.6 % 9.9% 9.8% 8.2% 6.4% 7.9% Kalmar 30.7 55.7 24.7 97.6 66.4 9.9% 8.1% 9.4% 7.7% % 8.5% 10.3 16.5 7.7 27.5 20.9 MacGREGOR 8.9% 8.8% 7.6% 6.2% 7.5% % 60.7 48.2 111.7 123.9 Cargotec total 179.4** 9.2% 7.9% 8.8% 6.5% 7.6%** % *Pro forma **Excluding EUR 15.4 million capital gain on sale of Consolis 12 July 19, 2006

Earnings per share (basic) EUR 3.00 2.50 1.90 2.00 1.50 1.20 1.16 0.86 1.00 0.63 0.52 0.50 0.00 2004 Pro 2005 Pro 1-6/05 Pro 1-6/06 4-6/05 Pro 4-6/06 forma forma* forma forma *Excluding EUR 15.4 million capital gain on sale of Consolis 13 July 19, 2006

Cash flow from operations MEUR 210 194 180 158 150 113 120 90 72 60 30 16 0 (1) (30) 2004 Pro 2005 Pro 1-6/05 Pro 1-6/06 4-6/05 Pro 4-6/06 forma forma forma forma 14 July 19, 2006

Key figures 1-6/2006 2005* 2004* Earnings per share EUR 1.16 1.90** 1.20 Equity per share EUR 12.58 11.93 10.17 Interest-bearing net debt MEUR 129.4 120.5 281.4 Total equity/total assets % 47.5 46.2 42.2 Gearing % 16.0 15.7 43.0 Return on equity % 18.9 19.2 12.6 Return on capital employed % 20.9 20.9 12.9 *Pro forma **Excluding EUR 15.4 million capital gain on sale of Consolis 15 July 19, 2006

Outlook • Cargotec’s market situation is expected to continue good. • Following a record first half of the year the order intake during the second half of 2006 is expected to be at last year’s healthy level. • Due to the strong order book at the end of June Cargotec’s net sales for year 2006 are estimated to exceed EUR 2.6 billion. • The operating income margin from operations is estimated to exceed 8 percent. 16 July 19, 2006