Slide 1: Comparable operating profit margin improved in all business areas
• Sequentially stable demand in Hiab and Kalmar Comparable operating • MacGregor’s merchant and profit margin improved services businesses’ good performance continued, in all business areas challenges remain in offshore projects Cargotec’s Interim Report January–March 2024 • Strong cash flow of EUR
Slide 2: Disclaimer
Disclaimer The following applies to this presentation, the oral presentation of the information in this presentation by Cargotec Corporation (the “Company” or “Cargotec”) or any person on behalf of the Company, and any question-and-answer session that follows the oral presentation (collectively, the
Slide 3: Contents
Contents ● Update on planned separation of Kalmar and Hiab ● Group level development ● Business areas ● Financials and outlook ● Q&A 3
Slide 4: Separation of Kalmar and Hiab is progressing according to the plan
Separation of Kalmar and Hiab is progressing according to the plan and supported by the main owners Demerger plan approved on 1 February Consent received from the bondholders Sami Niiranen started as Kalmar’s president on 1 April Cargotec and Kalmar Boards proposed Kalmar is proposed to have a share
Slide 5: Proposed members of Cargotec Board of Directors
Proposed members of Cargotec Board of Directors Eric Alström Raija-Leena Hankonen-Nybom Ilkka Herlin b. 1966 b. 1960 b. 1959 Jukka Moisio Tuija Pohjolainen-Hiltunen Ritva Sotamaa Luca Sra b. 1961 b. 1966 b. 1963 b. 1971 Cargotec’s interim report January–March 2024 | 30 April 2024 5
Slide 6: Proposed members of Kalmar Board of Directors
Proposed members of Kalmar Board of Directors Lars Engström Jaakko Eskola Marcus Hedblom b. 1963 b. 1958 b. 1970 Teresa Kemppi-Vasama Vesa Laisi Sari Pohjonen Emilia Torttila-Miettinen b. 1970 b. 1957 b. 1966 b. 1979 Cargotec’s interim report January–March 2024 | 30 April 2024 6
Slide 7: Structure of the planned transaction
Structure of the planned transaction Post transaction (and MacGregor solution) Kalmar and Hiab would be separate standalone businesses Envisaged structure post demerger Listing and ▪ Planned Kalmar listing on ownership Nasdaq Helsinki on 1 July 2024 Existing Cargotec shareholders ▪ Kalmar fully owne
Slide 8: Preliminary timeline for the demerger and listing of Kalmar
Preliminary timeline for the demerger and listing of Kalmar* Provided the shareholders decide to proceed with the process Q1 April May 28–29 May 30 May 30 June 1 July 2024 2024 2024 2024 2024 2024 2024 Demerger Sami Niiranen Demerger and Capital Cargotec Planned Planned first plan approved started a
Slide 9: Hiab and Kalmar orders sequentially stable, MacGregor increased
Hiab and Kalmar orders sequentially stable, MacGregor increased Orders received MEUR -0% -0% (y/y) (y/y) -15% (y/y) -15% (y/y) +29% (y/y) +11% (y/y) +1% (y/y) Hiab MacGregor Kalmar Continuing operations Discontinued operations Cargotec’s interim report January–March 2024 | 30 April 2024 9
Slide 10: Hiab and Kalmar have adjusted cost structures to current order books
Hiab and Kalmar have adjusted cost structures to current order books, MacGregor grew Order book MEUR -20% -20% (y/y) (y/y) -30% -30% (y/y) (y/y) +7% (y/y) -13% (y/y) -31% (y/y) Hiab MacGregor Kalmar Continuing operations Discontinued operations Cargotec’s interim report January–March 2024 | 30 April
Slide 11: Kalmar and Hiab sales lower due to order book development
Kalmar and Hiab sales lower due to order book development, MacGregor sales continued to increase Sales MEUR -2% -2% (y/y) (y/y) -10% -10% (y/y) (y/y) +29% (y/y) +5% (y/y) -4% (y/y) Hiab MacGregor Kalmar Continuing operations Discontinued operations Cargotec’s interim report January–March 2024 | 30 A
Slide 12: Cargotec's total eco portfolio sales and share of sales grew
Cargotec’s total eco portfolio sales and share of sales grew Eco portfolio sales Cargotec total Eco portfolio sales +1% in MEUR Q1/24 Eco portfolio share sales ● 33% of Cargotec total (32%) ● 28% of Continuing operations (32%) ● 40% of Kalmar (33%) Continuing operations Kalmar Cargotec’s interim rep
Slide 13: Comparable operating profit margin improved in all business areas
Comparable operating profit margin improved in all business areas Comparable operating profit, MEUR and comparable operating profit margin Hiab MacGregor Kalmar Cargotec’s interim report January–March 2024 | 30 April 2024 13
Slide 14: All-time high first quarter comparable operating profit
All-time high first quarter comparable operating profit supported by EUR 60 million annual cost saving actions Comparable operating profit, MEUR and comparable operating profit margin Cargotec total Continuing operations Discontinued operations Kalmar’s D&A impact +6.6 MEUR* Kalmar’s D&A impact +6.6
Slide 15: Cost saving actions successfully executed
Cost saving actions successfully executed October 2023 announcement Updated plan as most of the cost actions are taken Fixed cost saving actions to target 50 MEUR annual EUR 60 million annual savings planned to be savings in 2024 compared to 2023 achieved ▪ 10 MEUR in the group functions ▪ 10 MEUR i
Slide 16: Business areas
Business areas Cargotec’s interim report January–March 2024 | 30 April 2024 16
Slide 17: Hiab Q1/24: Improved comparable operating profit
Hiab Q1/24 • Stable demand Improved • Decline in sales reflecting lower order book comparable • Cash flow increased operating profit Cargotec’s interim report January–March 2024 | 30 April 2024 17
Slide 18: Stable order intake sixth quarter in a row
Stable order intake sixth quarter in a row Orders received and order book MEUR Q1/24 Q1/23 Change MEUR Orders received 386 380 1% Order book 770 1,121 -31% ● High interest rates continue to drive delayed decision making ● Loader crane orders improved and included a large order for wind segment Cargo
Slide 19: Sales decreased slightly while service sales continued to grow
Sales decreased slightly while service sales continued to grow Sales and Service sales MEUR Q1/24 Q1/23 Change MEUR Sales 415 432 -4% Service sales 117 112 4% Service sales, % 28% 26% 200 bps ● Decline in sales reflects lower order book ● Service sales increased ● Supply chain continues to improve w
Slide 20: Comparable operating profit increased despite lower sales
Comparable operating profit increased despite lower sales Comparable operating profit MEUR Q1/24 Q1/23 Change MEUR Comparable operating 69 61 12% profit Comparable operating 16.6% 14.2% 240 bps profit margin ● Successful management of inflationary pressures and tight cost control ● Cash flow increas
Slide 21: MyHiab app is a digital companion designed to assist operators
MyHiab app is a digital companion designed to assist operators to manage daily tasks more efficiently Quick access to key features and essential equipment information for better daily planning and problem-solving New digital channel to Hiab support Easier issue recovery Service reminders MyHiab app
Slide 22: Kalmar Q1/24: Continued strong profitability
Kalmar Q1/24 • Sequentially stable demand Continued strong • Strong cash flow • Successful execution of profitability cost savings programme Cargotec’s interim report January–March 2024 | 30 April 2024 22
Slide 23: Sequentially stable demand in orders received
Sequentially stable demand in orders received Orders received and order book MEUR Q1/24 Q1/23 Change MEUR Orders received 402 471 -15% Order book 971 1,390 -30% ● Underlying demand drivers slightly mixed. Continued good demand in mobile equipment used in industries and small- and midsized terminals
Slide 24: Sales impacted by lower order intake in H2/2023
Sales impacted by lower order intake in H2/2023 Sales and Service sales MEUR Q1/24 Q1/23 Change MEUR Sales 439 485 -10% Service sales 137 147 -7% Service sales, % 31% 30% 100 bps ● Lower order intake visible in sales ● Eco Portfolio sales improved 10% y-o-y ● Strong cash flow Cargotec’s interim repo
Slide 25: Strong profitability driven by continued improvements in commercial and operational excellence
Strong profitability driven by continued improvements in commercial and operational excellence Comparable operating profit MEUR Q1/24 Q1/23 Change MEUR Comparable operating 59 63 -6% profit Comparable operating 13.5% 13.0% 50 bps profit margin ● Lower sales offset by cost saving actions ● Cost savin
Slide 26: MacGregor Q1 – Merchant and service businesses continued to perform well
MacGregor Q1 – Merchant and service businesses continued to perform well Orders received increased ● Strong market momentum in MEUR Q1/24 Q1/23 Change merchant continued Orders received 267 208 29% ● One major order ~50 MEUR Order book 1,028 956 8% Sales increased by 30% Sales 203 157 29% ● Service
Slide 27: Financials and outlook
Financials and outlook Cargotec’s interim report January–March 2024 | 30 April 2024 27
Slide 28: Principles for discontinued operations reporting
Principles for discontinued operations reporting Image to be changed Kalmar Segment P&L Discontinued Operations P&L Order intake = Order Intake Sales = Sales Comparable Operating Profit ≠ Comparable Operating profit + Stopped depreciation 6.6M€ - Group discontinued overheads 0.5M€ Operating Profit ≠
Slide 29: Discontinued operations is added to income statement as one item
Discontinued operations is added to income statement as one item Image to be changed Discontinued operations profit as part of Cargotec’s income statement Cargotec’s interim report January–March 2024 | 30 April 2024 Cargotec’s interim report January–March 2024 | 30 April 2024 29
Slide 30: Key financial figures
Key financial figures Cargotec total Continuing operations Q1/24 Q1/23 Change Q1/24 Q1/23 Change Orders received, MEUR 1,054 1,059 0% 653 588 11% Order book, MEUR 2,770 3,467 -20% 1,799 2,078 -13% Sales, MEUR 1,056 1,074 -2% 617 589 5% Comparable operating profit, MEUR 137 112 22% 71 50 43% Comparab
Slide 31: Strong cash flow in Q1 driven by high profitability and reduction of net working capital
Strong cash flow in Q1 driven by high profitability and reduction of net working capital in Kalmar & MacGregor Cash flow from operations before finance items and taxes, Cargotec total MEUR Cargotec’s interim report January–March 2024 | 30 April 2024 31
Slide 32: Strong balance sheet and balanced maturity profile
Strong balance sheet and balanced maturity profile Net debt & gearing Maturity profile, 31 March 2024 MEUR Interest-bearing net debt / EBITDA 0.1 Cargotec’s interim report January–March 2024 | 30 April 2024 32
Slide 33: Outlook for 2024 unchanged
Outlook for 2024 unchanged Cargotec estimates1: Hiab’s comparable operating profit margin in 2024 to be above 12% Kalmar’s comparable operating profit margin in 2024 to be above 11% MacGregor’s comparable operating profit in 2024 to improve from 2023 (EUR 33 million) 1) The business area 2024 profit
Slide 34: Capital Markets Day 2024
CAPITAL MARKETS DAY 2024 28–29 May 2024 Helsinki, Finland cargotec.com/cmd24 34
Slide 35: Cargotec
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