Kalmar Corporation Class B · OMXHEX:KALMAR
Kalmar Corporation Class B — Kalmar Oyj B — Q2 2024 Earnings Presentation
29 slides from Kalmar Corporation Class B's earnings presentation, Aug 8, 2024
Slide 1: Continued solid profitability and a successful listing of Kalmar
Continued solid profitability and a successful listing of Kalmar Kalmar Half-Year Financials January-June 2024 8 August 2024
Slide 2: Agenda
Agenda 1. Second quarter’s highlights 2. Financial performance Sami Niiranen President & CEO 3. Strategy & performance targets 4. Financial profile 5. Reporting segments 6. Profitability bridge Sakari Ahdekivi 7. Return on capital employed CFO 8. Outlook unchanged 9. Q&A 2
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: Successful listing of Kalmar and continued solid profitability
We are pleased to report a stable second quarter marked by Successful continued solid profitability. As we look to the future, our strategy is clear: to drive sustainable growth by leading the listing of Kalmar industry towards greater electrification, accelerate service and continued growth and dri
Slide 5: Q2/2024 highlights – Continued solid profitability and successful listing of Kalmar
Q2/2024 highlights – Continued solid profitability and successful listing of Kalmar Comparable operating profit, MEUR and %1 • Solid profitability primarily driven by commercial performance • Mixed demand picture, with some softness especially in the North American distribution customer segment • Su
Slide 6: Cargotec demerger and listing of Kalmar successfully completed
Cargotec demerger and listing of Kalmar successfully completed 27 April 2023: Cargotec's Board of Directors decided to investigate and initiate a process to potentially separate its core businesses Kalmar and Hiab into two standalone companies. 30 May 2024: Cargotec's Annual General Meeting resolved
Slide 7: 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 Ports and Terminals AMEA Heavy Europe Logistics 35% 23% 38% 24% 33% 40% Manufacturing Distribution America
Slide 8: Demand sequentially on a stable level despite a slight decline in order intake in Q2
Demand sequentially on a stable level despite a slight decline in order intake in Q2 Orders received, MEUR MEUR Q2/24 Q2/23 Change Orders received 375 437 -14% Orders received by region, Q2/24 AMEA Europe 28% 45% • Underlying demand drivers mixed Americas • Delayed decision making continued in order
Slide 9: Order book declined from the comparison period
Order book declined from the comparison period Order book, MEUR MEUR Q2/24 Q2/23 Change Order book 925 1,281 -28% • Order book providing good visibility for the second half of 2024 • Cost structure adjusted to lower order book 9 Q2/2024 actual order book on 30.6.2024, carve-out figures for all other
Slide 10: Slower market activity reflected in sales decline and lower order book
Slower market activity reflected in sales decline and lower order book Sales, MEUR MEUR Q2/24 Q2/23 Change Sales 417 552 -25% Sales by region, Q2/24 AMEA Europe 23% 38% Americas 39% 10 Carve-out figures
Slide 11: Share of eco portfolio sales continued to increase
Share of eco portfolio sales continued to increase Eco portfolio sales, MEUR MEUR Q2/24 Q2/23 Change Eco portfolio sales, 168 181 -7% MEUR % of total sales 40% 33% • 40% of our total sales was attributed to our eco portfolio, underscoring our commitment to sustainable innovation • Customers’ interes
Slide 12: Solid comparable operating profit continued
Solid comparable operating profit continued Comparable operating profit, MEUR and % Q2/24 Q2/23 Change Comp. OP, 52.3 71.6 -27% MEUR % of sales 12.6% 13.0% • The commercial performance and a cost structure that has already been adjusted to lower sales largely offset the drop in sales volume 12 Carve
Slide 13: Good business performance in both segments in Q2
Good business performance in both segments in Q2 Equipment Services Orders received: Orders received: 238 MEUR 137 MEUR Order book1: Order book1: 809 MEUR 110 MEUR Sales: Sales: 279 MEUR 139 MEUR Comparable OP: Comparable OP: 36.4 MEUR/13.1% 24.0 MEUR/17.3% Other not included. Q2/2024 carve-out figu
Slide 14: Strategy & performance targets
Strategy & performance targets
Slide 15: 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
Slide 16: 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 17: Kalmar details its driving excellence initiative targeting efficiency gains
Kalmar details its driving excellence initiative targeting efficiency gains across its operations Driving excellence to target best-in-class commercial performance and cost efficiency 2021 2022 2023 2024 2025 2026 2027 2028 Exit Heavy Cranes Business* Portfolio Optimisation Exit End-to-End Automatio
Slide 18: Strengthening our solutions portfolio
Strengthening our solutions portfolio Launch of the Kalmar Electric Unveiling the Kalmar Ottawa T2 MyKalmar 2.0. digital ecosystem empty container handler Electric Terminal Tractor introduced: one stop platform for Kalmar equipment owners
Slide 19: Agenda
Agenda 1. Second quarter’s highlights 2. Financial performance Sami Niiranen President & CEO 3. Strategy & performance targets 4. Financial profile 5. Reporting segments 6. Profitability bridge Sakari Ahdekivi 7. Return on capital employed CFO 8. Outlook unchanged 9. Q&A 19
Slide 20: Attractive & strong financial profile
Attractive & strong financial profile Q2/2024 LTM key financial figures €1,574 MEUR €925 MEUR 25.5% 12.5% Orders received Order book1 Gross profit Comparable (at 30 June 2024) operating profit margin €1,868 MEUR 0.6x 20.2% 148% Sales Leverage Return on capital Cash conversion (interest bearing net d
Slide 21: Lower order book visible in equipment sales
Lower order book visible in equipment sales Equipment; Sales, orders received, order book, MEUR Equipment; Comparable operating profit, MEUR and % MEUR Q2/24 Q2/23 Change • Fully electric equipment contributed to Orders received 238 302 -21% 14% of the orders received in Q2/2024 Order book 809 1,146
Slide 22: Services sales stable
Services sales stable Services; Sales, orders received, order book, MEUR Services; Comparable operating profit, MEUR and % MEUR Q2/24 Q2/23 Change ● Services profitability has grown steadily, Orders received 137 135 2% Order book 110 108 2% currently presenting a solid profitability Sales 139 142 -2
Slide 23: Resilient performance driving solid profitability despite lower sales volumes
Resilient performance driving solid profitability despite lower sales volumes Comparable operating profit bridge, amounts in MEUR ● In line with the previously communicated 30 meur annual cost savings, approximately 20 meur are visible in H1/2024 fixed overhead and production costs. H1/2023 H1/2024
Slide 24: 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) 24
Slide 25: Outlook for 2024 unchanged
Outlook for 2024 unchanged As published on 1 July 2024, Kalmar’s comparable operating profit margin as a standalone company is estimated to be above 11 percent in 2024.
Slide 26: Q&A
Q&A
Slide 27: Appendix
Appendix < Kalmar
Slide 28: Key figures
Key figures MEUR 02/24 92/23 Change Q1-92/24 Q1-92/23 Change 2023 Carve-out Carve-out Carve-out Carve-out Carve-out Orders received 318 437 “6% 908 6% 1.705 “Order book, end of period i 4281 -28% 4,281 -28% “4,024 Sales 562 -28% 4.037 41% 2.050 Eocponto nes oh etd Bi! ata! 22 Eco porttolio sales, %
Slide 29: Making every move count.
Making every move count.