Kalmar Corporation Class B · OMXHEX:KALMAR
Kalmar Corporation Class B — Kalmar Oyj B — Q3 2024 Earnings Presentation
26 slides from Kalmar Corporation Class B's earnings presentation, Nov 1, 2024
Slide 1: Record-high profitability in the third quarter
January-September 2024 interim report: Record-high profitability in the third quarter 1 November 2024
Slide 2: Agenda
Agenda 1. Third quarter’s highlights 2. Market environment Sami Niiranen President & CEO 3. Financial & business performance 4. Financial profile 5. Reporting segments Sakari Ahdekivi 6. Balance sheet & cash flow CFO 7. Outlook 8. Q&A
Slide 3: Disclaimer
Disclaimer This presentation includes forward-looking statements that are based on present plans, estimates, projections and expectations and are not guarantees of future performance. These forward-looking statements are subject to numerous risks, uncertainties and assumptions, including risks relat
Slide 4: Q3/2024 highlights – Record-high profitability in the third quarter
Q3/2024 highlights – Record-high profitability in the third quarter Comparable operating profit, MEUR and %1 • Record-high profitability on lower sales volume • Services comparable operating profit margin continued to improve. • Overall demand has remained stable, with a prolonged softness in the No
Slide 5: A solid foundation and a well diversified business with solid profitability
A solid foundation and a well diversified business with solid profitability Services Addressable markets by Geographical Eco portfolio share of sales customer segment sales split share of sales Heavy Logistics Ports and Terminals AMEA Europe 24% 35% 18% 39% 33% 40% Manufacturing Distribution America
Slide 6: Market environment - mixed picture
Market environment - mixed picture Average growth rate 2024-28: 3.2% Average growth rate 2024-28: 3.0% Average growth rate 2019-23: 2.7% Average growth rate 2019-23: 2.0% Average growth rate 2024-28: 2.9% Average growth rate 2024-28: 2.8% Average growth rate 2019-23: 2.6% Average growth rate 2019-23
Slide 7: Sequentially stable demand and order book on a healthy level
Sequentially stable demand and order book on a healthy level Orders received and order book, MEUR • The demand picture varied both regionally and by end-customer segments ‒ Europe and the AMEA region remained stable ‒ Continued softness in the North American market 471 437 392 405 402 375 416 • Some
Slide 8: Announced orders booked in Q3 2024
Announced orders booked in Q3 2024 13 forklift trucks + 26 hybrid straddle 8-year service contract carriers to GMP Le to BlueScope, Australia Havre, France Size: large Size: major 6 reachstackers and 2 3 heavy terminal empty container tractors to Grimaldi handlers to Super Group, Italy/ Turkey Termi
Slide 9: Stable demand reflected in connected fleet activity
Stable demand reflected in connected fleet activity y/y: 0% q/q: 0% y/y: +4% y/y: +1% q/q: -1% q/q: +1% y/y: -4% q/q: 0% 65,000+ installed base y/y: +1% q/q: +4% 13,000+ y/y: -1% connected q/q: +3% y/y: +1% equipment q/q: -1% Change in equipment activity: 9 y/y = Q3/2024 vs Q3/2023 q/q = Q3/2024 vs
Slide 10: Slower market activity and lower order book than previous year visible in sales
Slower market activity and lower order book than previous year visible in sales Sales, MEUR • Increased share of services sales providing resilience Sales by region, Q3/24 Americas Europe 43% 39% MEUR Q3/24 Q3/23 Change Q1-Q3/24 Q1-Q3/23 Change Sales 425 503 -16% 1,280 1,540 -17% Services share 33%
Slide 11: Eco portfolio share of sales high
Eco portfolio share of sales high Eco portfolio sales, MEUR and % of total sales • Customers showing strong interest towards electrical and hybrid solutions • Fully electric share of total equipment orders was 10% on LTM basis MEUR Q3/24 Q3/23 Change Q1-Q3/24 Q1-Q3/23 Change Eco portfolio 172 175 -2
Slide 12: Actions towards sustainable growth in Q3
Actions towards sustainable growth in Q3 Volvo Penta collaboration Partnership with CES to Kalmar’s climate Decision to expand our with framework service distribute and service commitment was approved Innovation Center in agreement for engines heavy-duty material by the Science Based Ljungby, Sweden
Slide 13: Good business performance in both segments in Q3
Good business performance in both segments in Q3 Equipment Services Orders received: Orders received: 284 MEUR 132 MEUR Order book: Order book: 797 MEUR 103 MEUR Sales: Sales: 285 MEUR 139 MEUR Comparable operating profit: Comparable operating profit: 38.9 MEUR/13.6% 25.4 MEUR/18.3% Other not includ
Slide 14: Kalmar's performance targets for 2028
Kalmar’s performance targets for 2028 Financial targets 5% 15% >25% Sales growth p.a. Comparable operating ROCE1 over the cycle profit margin Capital Aligned with2 Kalmar aims for a structure and SBTi targets <2x dividend payout ratio of sustainability framework with 1.5°C Leverage3 (Net Debt to EBI
Slide 15: Driving excellence across operations
Driving excellence across operations Driving excellence to target best-in-class commercial performance and cost efficiency Kalmar is planning to 2021 2022 2023 2024 2025 2026 2027 2028 reach approximately Exit Heavy Cranes Business* €50 million Portfolio Optimisation gross efficiency improvements Ex
Slide 16: Agenda
Agenda 1. Third quarter’s highlights 2. Market environment Sami Niiranen President & CEO 3. Financial & business performance 4. Financial profile 5. Reporting segments Sakari Ahdekivi 6. Balance sheet & cash flow CFO 7. Outlook 8. Q&A
Slide 17: Attractive & strong financial profile
Attractive & strong financial profile Q3 2024 LTM key financial figures 1,598 MEUR 905 MEUR 26.2% 12.5% Orders received Order book Gross profit Comparable (at 30 September 2024) operating profit margin 1,790 MEUR 0.4x 19.3% 126% Sales Leverage Return on capital Cash conversion (interest bearing net
Slide 18: Equipment orders on a stable level
Equipment orders on a stable level Equipment; Sales, orders received, order book, MEUR Equipment; Comparable operating profit, MEUR and % MEUR Q3/24 Q3/23 Change • Sequentially stable demand for the fifth Orders received 284 266 7% quarter in a row Order book 797 1,063 -25% • Profitability remained
Slide 19: Services profitability continued to improve
Services profitability continued to improve Services; Sales, orders received, order book, MEUR Services; Comparable operating profit, MEUR and % MEUR Q2/24 Q2/23 Change ● Profitability improved due to good Orders received 132 126 5% Order book 103 98 5% operational execution Sales 139 135 3% ● Stabl
Slide 20: Resilient performance drove solid profitability despite lower sales volumes
Resilient performance drove solid profitability despite lower sales volumes Comparable operating profit bridge, amounts in MEUR ● In line with the previously 195 communicated 30 meur annual 164 cost savings, approximately 25 meur are visible in YTD Q3/2024 SG&A and production indirect costs Q3/23 YT
Slide 21: Kalmar's return on capital employed enables long-term growth
Kalmar’s return on capital employed enables long-term growth Return on capital employed (ROCE, last 12 months) 21 The time period Q1/23 - Q2/24 is based on carve-out figures
Slide 22: Strong balance sheet
Strong balance sheet Net debt and gearing, MEUR Maturity profile, 30 September 2024 Interest-bearing net debt / EBITDA** 0.4x 22 *The detailed maturing profile of lease liabilities is reported annually and estimated in the interim reports. **Last 12 months’ EBITDA, periods prior to Q3/2024 are on car
Slide 23: Cash flow remaining strong
Cash flow remaining strong Cash flow from operations before financing items and taxes, MEUR 23 Q1/23 - Q2/24 are carve-out figures
Slide 24: Outlook for 2024 specified
Outlook for 2024 specified Kalmar expects its comparable operating profit margin to be above 12 percent in 2024. According to the previous outlook published by Kalmar on 1 July 2024, Kalmar expected its comparable operating profit margin as a standalone company to be above 11 percent in 2024. 24
Slide 25: Q&A
Q&A 25
Slide 26: Making every move count
Making every move count Market drivers Productivity Vision: Forerunner in sustainable material Safety handling equipment and services Intelligent operations Decarbonisation & Electrification Changing logistics landscape Labour shortage Strategic pillars Investing in Sustainable Innovations Growing S