Slide 1: Solid performance in an exceptional environment
17 July 2020 • Demand and our delivery capability improving Solid performance • Service and software resilient in an exceptional • Rapid actions visible in comparable operating environment profit • Strong financial position, Cargotec’s January–June 2020 half year financial total liquidity 970 MEUR r
Slide 2: Contents
Contents ● Group level development ● COVID-19 situation ● Business areas ● Financials and outlook ● Strategic progress in Q2 ● 1.5°C climate ambition 2
Slide 3: Highlights of Q2 2020 – Strong Covid-19 impact in early Q2
Highlights of Q2 2020 – Strong Covid-19 impact in early Q2, gradual improvement throughout the quarter Orders received decreased by 27% Sales decreased by 17% compared to Q2/2019 level Comparable operating profit decreased by 33% ● Kalmar -7 MEUR from Q2/2019 ● Hiab -26 MEUR from Q2/2019 ● MacGregor
Slide 4: The coronavirus pandemic affected Cargotec in Q2/20
The coronavirus pandemic affected Cargotec in Q2/20 Safety of our personnel and customers top priority Group-wide focus on safeguarding business continuity, cash flow and adjusting cost structure ● Temporary cost savings effective, approximately 10 MEUR per month Demand recovering month-by-month ● U
Slide 5: Kalmar's equipment data shows steady recovery
Hiab loader cranes usage on February level in Europe, Kalmar’s equipment data shows steady recovery Kalmar Mobile Solutions, indexed running hours¹ Hiab, loader cranes’ activity index² ¹Global running hours of Kalmar Mobile Solutions’ connected equipment. 28 day indexed average comparison with Febru
Slide 6: Gradual improvement in equipment running hours
Gradual improvement in equipment running hours -10% -10% -3% Change in amount of -29% 93% total running hours of of machines in the Kalmar Mobile use vs. Jan- -16% Solutions connected Feb average +6% fleet. 7-13 July compared vs. January & February average. Cargotec’s half year financial report Janu
Slide 7: Market environment
Market Global container throughput (MTEU)1 – Key driver for Kalmar environment -9.6% Number of containers handled at ports declined ● Customers are postponing Construction output2 – Key driver for Hiab decision-making in major United States Europe investments -5.9% -9.5% Construction activity decrea
Slide 8: Orders expected to have reached bottom in Q2
Orders expected to have reached bottom in Q2 -35% (y/y) MEUR +4% (y/y) -34% (y/y) -30% (y/y) Cargotec’s half year financial report January–June 2020 | 17 July 2020 8
Slide 9: Order book on a good level in all business areas
Order book on a good level in all business areas Order book Order book by reporting MEUR segment, Q2 2020 49% 31% -11% (y/y) 20% Cargotec’s half year financial report January–June 2020 | 17 July 2020 9
Slide 10: Sales decreased, gradual recovery during the quarter
Sales decreased, gradual recovery during the quarter Sales Comparable operating profit MEUR MEUR x *) Including Corporate admin and support Cargotec’s half year financial report January–June 2020 | 17 July 2020 10
Slide 11: Software sales increased, Services resilient
Software sales increased, Services resilient Service and software* sales Q2/20 service sales -8% MEUR ● Kalmar -7% ● Hiab -18% ● MacGregor +7% Decline in Hiab due to reduction in installations and accessories, driven by lower new equipment sales Software sales +5% Service and software 37% of total s
Slide 12: Business areas
Business areas Cargotec’s half year financial report January–June 2020 Cargotec’s January-March 2020 interim report 23/4/2020 12
Slide 13: Kalmar Q2 – Recovering customer activity towards the end of the quarter
Kalmar Q2 – Recovering customer activity towards the end of the quarter Orders received declined in Automation MEUR Q2/20 Q2/19 Change & Projects and mobile equipment Orders received 293 417 -30% Order book 885 1,101 -20% Sales increased in Automation and Projects but decreased in mobile Sales 350 4
Slide 14: Hiab Q2 – Good comparable operating profit margin despite decline in sales
Hiab Q2 – Good comparable Based on 31.3.2020 operating profit margin despite of estimate decline in sales Orders received and sales MEUR Q2/20 Q2/19 Change decreased in all regions Orders received 223 340 -34% Order book 373 453 -18% ▪ Service sales decreased by 18% Sales 243 358 -32% Comparable ope
Slide 15: MacGregor Q2 – Comparable operating profit improved
MacGregor Q2 – Comparable operating profit improved Orders received increased by 4% MEUR Q2/20 Q2/19 Change Sales increased by 28% Orders received 120 116 4% ▪ Service sales +7% Order book 565 519 9% Comparable operating profit increased Sales 163 127 28% ▪ Restructurings savings Comparable ▪ Mercha
Slide 16: Financials and outlook
Financials and outlook Cargotec’s half year financial report January–June 2020 Cargotec’s January-March 2020 interim report 23/4/2020 16
Slide 17: Key figures – Q2 comparable operating profit on good level
Key figures – Q2 comparable operating profit on good level Q2/20 Q2/19 Change H1/20 H1/19 Change Orders received, MEUR 637 872 -27% 1,417 1,894 -25% Order book, MEUR 1,822 2,072 -12% 1,822 2,072 -12% Sales, MEUR 756 911 -17% 1,614 1,767 -9% Comparable operating profit, MEUR 43 64 -33% 83 122 -32% Co
Slide 18: Cash flow remained positive
Cash flow remained positive Cash flow from operations before financing items and taxes MEUR Cargotec’s half year financial report January–June 2020 | 17 July 2020 18
Slide 19: Strong financial position and liquidity
Strong financial position and liquidity Net debt & gearing Total liquidity, 30 June 2020 MEUR *Cargotec adopted the IFRS 16 standard on 1 Jan 2019. Cargotec’s half year financial report January–June 2020 | 17 July 2020 19
Slide 20: Balanced debt portfolio - no major repayments in the coming years
Balanced debt portfolio - no major repayments in the coming years Loan structure, 30 June 2020 Repayment schedule of interest-bearing liabilities excluding finance lease 6% MEUR 37% 57% Cargotec’s half year financial report January–June 2020 | 17 July 2020 20
Slide 21: Outlook for 2020
Outlook for 2020 Visibility towards the end of the year is still weak In the current exceptional situation Cargotec estimates that it is not able to give a guidance for the year 2020 Cargotec estimates its business and operating environment to develop in H2/20 as follows: ▪ The recovery of market ac
Slide 22: Strategic progress and climate ambition
Strategic progress and climate ambition Cargotec’s half year financial report January–June 2020 Cargotec’s January-March 2020 interim report 23/4/2020 22
Slide 23: We continue executing our strategy
We continue executing our strategy Driving our productivity Enabling sustainable long-term value ● Sale of joint venture Rainbow-Cargotec creation ● Contract manufacturing of Indital ● Commitment to UN’s Business products and closing of Bangalore Ambition for 1.5°C multi-assembly unit ● Signing of U
Slide 24: Let's reduce CO2 emissions at least 50 percent by 2030
Let’s reduce CO, emissions at least 50 percent by 2030. This is critical for limiting global warming to 1.5 degrees.
Slide 25: Disclaimer
Disclaimer This 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 prospects ar
Slide 26: Cargotec
& CARGOTEC