Kalmar Corporation Class B · OMXHEX:KALMAR
Kalmar Corporation Class B — Kalmar Oyj B — Q4 2024 Earnings Presentation
29 slides from Kalmar Corporation Class B's earnings presentation, Feb 13, 2025
Slide 1: Resilient profitability and strong orders in the fourth quarter
January-December 2024 financial statements review: Resilient profitability and strong orders in the fourth quarter 13 February 2025
Slide 2: Agenda
Agenda 1. Fourth 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. Guidance for 2025 8. Dividend distribution proposal 9. 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: Q4/2024 highlights – Resilient profitability and strong orders
Q4/2024 highlights – Resilient profitability and strong orders • Profitability has remained resilient despite Comparable operating profit, MEUR and %1 lower sales • Highest quarterly orders in two years, supported by relatively many large orders • Overall demand has remained stable • The board propo
Slide 5: Strong order intake in Q4 with 20% increase, demand remained stable
Strong order intake in Q4 with 20% increase, demand remained stable Orders received and order book, MEUR • Including relatively many large straddle carriers orders • The demand picture varied both regionally and by end-customer segments ‒ Demand in ports and terminals remained good globally 471 437
Slide 6: Sequentially stable sales throughout 2024
Sequentially stable sales throughout 2024 Sales, MEUR • Increased share of services sales providing resilience Sales by region, Q4/24 MEUR Q4/24 Q4/23 Change FY24 FY23 Change Sales 440 509 -14% 1,720 2,050 -16% Services share 33% 28% 33% 28% of total sales 6 Q1/23 - Q2/24 are carve-out figures
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 share Addressable markets by Geographical Eco portfolio of sales 2024 customer segment sales split 2024 share of sales 2024 Heavy Logistics Ports and Terminals AMEA Europe 24% 35% 20% 41% 33% 41% Manufacturing Distr
Slide 8: Leading sales and service network in the industry
Leading sales and service network in the industry Kalmar Innovation Centre, Kalmar Innovation Centre, Tampere, Finland Ljungby, Sweden Head Office, Helsinki, Finland Kalmar Factory, Stargard, Poland 1,400+ Kalmar Factory, Ottawa, United States Service Kalmar Factory, technicians Shanghai, China Sale
Slide 9: Market environment - modest growth with some uncertainties
Market environment - modest growth with some uncertainties Average growth rate 2024-28: 3.2% Average growth rate 2024-28: 3.2% Average growth rate 2019-23: 2.7% Average growth rate 2019-23: 2.0% Average growth rate 2024-28: 2.8% Average growth rate 2024-28: 2.9% Average growth rate 2019-23: 2.6% Ave
Slide 10: Stable demand reflected in connected fleet activity
Stable demand reflected in connected fleet activity y/y: +2% q/q: -2% y/y: +5% y/y: +1% q/q: -7% q/q: -1% y/y: 0% q/q: +1% 68,000+ installed base y/y: +2% q/q: -3% 14,500+ y/y: -2% connected q/q: -2% y/y: -1% equipment q/q: -4% Change in equipment activity: 10 y/y = Q4/2024 vs Q4/2023 q/q = Q4/2024
Slide 11: Eco portfolio share of sales record high
Eco portfolio share of sales record high Eco portfolio sales, MEUR and % of total sales • Customers showing strong interest towards Eco portfolio solutions • Fully electric share of total equipment orders was 9% in 2024 • The potential for fully electric equipment is significant, but the order growt
Slide 12: Actions towards sustainable growth in 2024
Total R&D Actions towards sustainable growth in 2024 spend in 2024 was 3.1% of sales Volvo Penta Decision to expand our MyKalmar 2.0 digital collaboration with Innovation Center in ecosystem introduced: framework service Ljungby, Sweden by one stop platform for agreement for engines building a world
Slide 13: Good business performance in both segments in 2024
Good business performance in both segments in 2024 Equipment Services Orders received: Orders received: 1,099 MEUR 580 MEUR Order book: Order book: 831 MEUR 120 MEUR Sales: Sales: 1,160 MEUR 560 MEUR Comparable operating profit: Comparable operating profit: 150.1 MEUR/12.9% 97.8 MEUR/17.5% Other not
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: Agenda
Agenda 1. Fourth 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. Guidance for 2025 8. Dividend distribution proposal 9. Q&A
Slide 16: Attractive & strong financial profile
Attractive & strong financial profile 2024 key financial figures 1,679 MEUR 955 MEUR 26.3% 12.6% Orders received Order book Gross profit Comparable (at 31 December 2024) operating profit margin 1,720 MEUR 0.3x 18.7% 104% Sales Leverage Return on capital Cash conversion (interest bearing net debt at
Slide 17: Strong ending to the year in equipment orders
Strong ending to the year in equipment orders Equipment; Sales, orders received, order book, MEUR • Sequentially stable demand for almost two years • Relatively many large orders won in Q4, including Straddle Carriers. • Quarterly fluctuation is normal. • Orderbook remained on a good level. MEUR Q4/
Slide 18: Equipment profitability on a good level despite lower sales
Equipment profitability on a good level despite lower sales • Profitability remained resilient despite Equipment; Comparable operating profit, MEUR and % lower sales volumes due to ‒ successful commercial performance ‒ as well as cost savings actions executed • The decrease in profitability was main
Slide 19: Order intake in services increased by 15%
Order intake in services increased by 15% Services; Sales, orders received, order book, MEUR ● Orders received, sales and order book all reached highest quarterly levels in two years, providing resilience ● Including some larger maintenance contract renewals in Q4 ● Reflecting a good demand for our
Slide 20: Services performance on a solid level
Services performance on a solid level Services; Comparable operating profit, MEUR and % ● Profitability on a solid level, opportunities to improve going forward ● Successful commercial performance 20 Q1/23 - Q2/24 are carve-out figures
Slide 21: Business showing resilience despite lower sales volumes
Business showing resilience despite lower sales volumes Comparable operating profit 2023 to 2024 to operating profit 2024 bridge, amounts in MEUR 255 217 174 *Improved business performance includes e.g. improvement in the sales mix, price management and sourcing actions 21
Slide 22: 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) Items affecting comparability deriving mostly from demerger and listing costs had a -4.1 percentage points impact on ROCE Q4/24. 22 The time period Q1/23 - Q2/24 is based on carve-out figure
Slide 23: Strong balance sheet
Strong balance sheet Net debt and gearing, MEUR Maturity profile, 31 December 2024* Interest-bearing net debt / EBITDA** 0.3x 23 *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 24: Continued strong cash generation
Continued strong cash generation Cash flow from operations before financing items and taxes, MEUR 24 Q1/23 - Q2/24 are carve-out figures
Slide 25: Dividend distribution proposal 1.00 euros for year 2024
Dividend distribution proposal 1.00 euros for year 2024 Kalmar Board of Directors proposes to the General Meeting held on 27 EPS March 2025 1.99€ • Dividend payment of EUR 1.00 per each outstanding class B share and EUR 0.99 per each class A share Dividend • Record date 31 March 2025 1.00€ per • Pay
Slide 26: Guidance for 2025
Guidance for 2025 Kalmar expects its comparable operating profit margin to be above 12 percent in 2025. 26
Slide 27: Q&A
Q&A 27
Slide 28: 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 29: 2024 equipment sales to and from US
2024 equipment sales to and from US Canada Stargard, Poland United States Ottawa, United States Shanghai, China In addition to Mexico equipment sales, spare parts and service operations generate material Ipoh, Malaysia revenue in the US. (Bromma) Equipment sales flows, width indicates magnitude Sour