Slide 1: Cargotec's January-March 2020 interim report
23 April 2020 Poor visibility • COVID-19 situation in challenging affecting orders, operations and visibility environment • Actions taken to safeguard profitability Cargotec’s January-March 2020 interim report • Strong financial Mika Vehviläinen, CEO • Mikko Puolakka, CFO position Cargotec’s January
Slide 2: Contents
Contents 1. Group level development 2. COVID-19 situation 3. Business areas 4. Financials and outlook
Slide 3: Highlights of Q1 2020 – Lower comparable operating profit due to less favourable business mix
Highlights of Q1 2020 – Lower comparable operating profit due to less favourable business mix 7.6% 7.3% Orders received decreased by 24% 7.1% 6.7% Sales remained on Q1/2019 level Comparable operating profit decreased by 31% 4.6% Kalmar -21% 74 68 Hiab -11% 57 64 MacGregor’s comparable operatin
Slide 4: The coronavirus pandemic affected Cargotec in Q1/20
The coronavirus pandemic affected Cargotec in Q1/20 Safety of our personnel and customers top priority Increasing uncertainty and restrictions set by authorities have slowed decision making and weakened orders received throughout Q1 Challenges in supply chain: lack of components Assembly units i
Slide 5: Rapid reaction to adjust cost structure
Rapid reaction to adjust cost structure Group wide temporary cost savings programme (communicated 27 March) Office workers (ca. 6,000 employees) have shifted to a four-day working week with a corresponding reduction in salaries. Until further notice and with their consent, the salaries of the co
Slide 6: Market environment Q1/2020
Market Global container throughput (MTEU) – Key driver for Kalmar Source: Drewry environment 200 -3.8% 193 186 Q1/2020 0 Q1/2019 Q1/2020 Number of containers handled at ports declined Construction output – Key driver for Hiab Source: Oxford Economics Customers are postponing decision- United State
Slide 7: Orders received decreased in Q1
Orders received decreased in Q1 MEUR 1,200 1,022 981 991 962 1,000 921 863 131 165 872 858 184 141 193 -8% 781 800 124 116 156 (y/y) 301 341 151 600 294 357 322 307 340 -13% 307 (y/y) 296 400 550 516 432 486 450 417 446 -35% 200 396 (y/y) 334 0 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019
Slide 8: Order book remains strong
Order book remains strong Order book Order book by reporting MEUR segment, Q1 2020 2,500 2,251 2,145 2,089 2,072 2,000 1,938 536 712 31%-11% 519 633 591 (y/y) 1, 500 483 453 458 406 396 1, 000 1,127 1,101 1,083 1,049 49% 500 952 20% 0 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Kalmar Hiab MacGregor Kalmar Hiab M
Slide 9: Sales remained on the same level compared to Q1/2019
Sales remained on the same level compared to Q1/2019 Sales Comparable operating profit MEUR MEUR 1, 250 80 74 68 1,015 70 64 1, 000 57 911 901 856 176 858 60 127 139 170 50 750 153 40 40 368 358 307 30 316 302 500 20 10 250 471 0 401 427 424 404 -10 0 -20 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q1/19 Q2/19 Q3
Slide 10: Service and software sales continued to grow y-o-y
Service and software sales continued to grow y-o-y Service and software* sales Q1/20 service sales +5% MEUR Kalmar -3% Software Services 350 Hiab +1% MacGregor +24% 300 46 44 38 41 40 Software sales +7% 250 200 Service and software sales constituted 35% of total sales 150 269 285 260 in Q1/20
Slide 11: Business areas
Business areas Cargotec’s January-March 2020 interim report
Slide 12: Kalmar Q1 – Orders received and comparable operating profit declined
Kalmar Q1 – Orders received and comparable operating profit declined MEUR Q1/20 Q1/19 Change Orders received declined in Orders 334 516 -35% automation orders and mobile received equipment Order book 952 1,127 -16% Sales remained on Q1/2019 level Sales 404 401 +1% TO BE UPDATED Service sales decre
Slide 13: Hiab Q1 – Comparable operating profit margin remained stable
Hiab Q1 – Comparable operating Based on 31.3.2020 profit margin remained stable estimate MEUR Q1/20 Q1/19 Change Orders received decreased in all Orders 296 341 -13% regions received Order book 396 483 -18% Sales decreased Sales 302 316 -5% Service sales increased by 1% Comparable 30 34 -11% Compa
Slide 14: MacGregor Q1 – Loss making quarter, service sales increased
MacGregor Q1 – Loss making quarter, service sales increased Orders received decreased by 8% MEUR Q1/20 Q1/19 Change Decline in merchant, increase in Orders 151 165 -8% offshore and service orders (+21%) received Sales increased by 10% Order book 591 536 +10% Service sales +24% Sales 153 139 +10%
Slide 15: Financials and outlook
Financials and outlook Cargotec’s January-March 2020 interim report
Slide 16: Key figures – Order book remained strong
Key figures – Order book remained strong Q1/20 Q1/19 Change Orders received, MEUR 781 1,022 -24% Order book, MEUR 1,938 2,145 -10% Sales, MEUR 858 856 +0% Comparable operating profit, MEUR 40 57 -31% Comparable operating profit, % 4.6% 6.7% -210 bps Items affecting comparability, MEUR -13 -6 -106% O
Slide 17: Cash flow declined
Cash flow declined Cash flow from operations before financing items and taxes MEUR 250 208 200 150 100 86 81 50 41 27 31 17 23 0 -4 -50 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Cargotec’s January-March 2020 interim report 23/4/2020 17
Slide 18: Balanced debt portfolio
Balanced debt portfolio Loan structure, % (31.3.2020) 10 % MEUR 20 % 59% 57% 1, 200 54% 60% 1, 000 46% 44% 44% 41% 800 36% 40% 33% 188 180 600 719 622 625 586 618 400 503 472 20% 200 70 % 0 0% 2014 2015 2016 2017 2018 2019 Q1/2020 Bilateral bank loans Bonds and Schuldschein loans Net debt IFRS 16 Le
Slide 19: Strong financial position and balanced maturity profile
Strong financial position and balanced maturity profile Balanced maturity profile EUR 144 million maturing in 2020 Q2-Q4 Repayment schedule of interest-bearing liabilities excluding Solid liquidity position (31.3.2020) finance lease + 281 MEUR cash and cash equivalents MEUR + 300 MEUR commi
Slide 20: Board proposes dividend of up to 1.20 EUR
Board proposes dividend of up to 1.20 EUR The Board of Directors proposes to the Annual General Meeting (AGM) convening on 27 May 2020 that: The dividend will be paid in two instalments. The first instalment is EUR 0.60 per B class share and paid directly based on the decision of the AGM The B
Slide 21: Outlook for 2020
Outlook for 2020 On 27 March 2020, Cargotec updated its outlook for 2020 due to the coronavirus pandemic and related political decisions and administrative restrictions. In the current exceptional situation Cargotec estimated that it is not able to give a guidance for 2020. Cargotec publishes a new
Slide 22: Impact of uncertainty and challenging market has been clearly visible in April
Impact of uncertainty and challenging market has been clearly visible in April -12% -22% -4% Change in amount of -37% total running hours of the Kalmar Mobile -11% Solutions connected -6% fleet. 15-22 April compared vs. January & February average. Cargotec’s January-March 2020 interim report 23/4/20
Slide 23: Presentation name | Author
Presentation name | Author 23/04/2020 23
Slide 24: Disclaimer
Disclaimer The interim report provides estimates on future prospects involving risk and uncertainty factors, and other factors as a result of which the performance, operation or achievements of Cargotec may substantially deviate from the estimates. Forward- looking statements relating to future pros
Slide 25: tc CARGOTEC
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