Kalmar Corporation Class B · OMXHEX:KALMAR
Kalmar Corporation Class B — Q3 2024 Earnings Presentation
39 slides from Kalmar Corporation Class B's earnings presentation, November 2024
Slide 1: Q3 2024: Record-high profitability in the third quarter
Q3 2024: Record-high profitability in the third quarter Investor presentation November 2024
Slide 2: Agenda
Agenda ● Strategy & performance targets ● Outlook for 2024 ● Q3 2024 financials and market environment ● Appendix ○ Investment highlights ○ Electrification ○ Key figures ○ Segment figures ○ COP bridge ○ Balance sheet & cash flow key items
Slide 3: 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 4: Pure-play leader in the heavy material handling market
Pure-play leader in the heavy material handling market #1 #2-3 #1 #1 #1 Reachstackers1 Forklift Trucks, Terminal Straddle Spreaders medium and heavy Tractors Carriers EQUIPMENT SERVICES A leading service network in the industry, close to customers2 Spare parts Maintenance Lifecycle solutions # Refer
Slide 5: 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 6: 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. 6
Slide 7: Q3 financials
Q3 financials 7
Slide 8: 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 9: 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 10: 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 11: 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 12: 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 13: 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: 13 y/y = Q3/2024 vs Q3/2023 q/q = Q3/2024 vs
Slide 14: 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 15: 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 16: 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 17: 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 18: 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 19: 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 20: Appendix
Appendix 20
Slide 21: Investment highlights – Making every move count
Investment highlights – Making every move count Global leader in an attractive market for 01 mission-critical heavy material handling Partnering long-term with our customers 02 to deliver a stronger impact Geared to grow by making the industry more People with unique 03 electrified, intelligent and
Slide 22: 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 1,300+ Kalmar Factory, Ottawa, United States Service Kalmar Factory, technicians Shanghai, China Sale
Slide 23: Growth execution underway with clear priorities ahead
Growth execution underway with clear priorities ahead Services sales, MEUR Add customer +22% 567 value with Leverage data-driven 467 industry solutions Spare part capture Capture higher electrification rate from 25% to 29% share of for increased Strong focus on installed base services growth digital
Slide 24: We will continue to allocate capital to profitable growth, sustainability and shareholder returns
We will continue to allocate capital to profitable growth, sustainability and shareholder returns Investing in organic growth Principles for capital allocation prioritization Organic Long-term Shareholder CAPEX Strong M&A growth growth returns balance sheet readiness possibilities Prioritising R&D s
Slide 25: Market is pushing for electrification and our customers are increasingly active
Market is pushing for electrification and our customers are increasingly active Electrification is driving the market3 Safety, Sustainability & Regulation 10% 63% accelerates decarbonisation of equipment of customers plan 41% orders were fully zero or low emission electric in capex by 20282 LTM Q3/2
Slide 26: Customer's electric buying process simplified
Customer’s electric buying process simplified With reference to time of order (first time EV buyers) Delivery of machine = Sales -18 to 24 -12 to 18 -0 to 12 Time of +0 to 9 After months months months order months delivery Decarbonisation Infrastructure Sales discussions Ordering of Ordering and Cha
Slide 27: Customers' electric and diesel buying process compared
Customers’ electric and diesel buying process compared With reference to time of order (first time EV buyers) Delivery of machine = Sales -18 to 24 -12 to 18 -0 to 12 Time of +0 to 9 After months months months order months delivery Electric Decarbonisation Infrastructure Sales discussions re. Orderi
Slide 28: Kalmar's new climate targets
Kalmar’s new climate targets From 1 January 2025 40% reduction in value chain emissions Targets are (scope 3) pending SBTi approval Product use-phase Mostly selling diesel-powered equipment Service Product use-phase Mostly selling Eco portfolio equipment Product manufacturing Product Own operations
Slide 29: Key figures
Key figures MEUR 3/24 Q3/23 Change Q1-Q3/24 Qt-@3/23 Change 2023 Carve-out Carve-out Carve-out Orders received a6 392 6% 4493 4.300 8% 4.705 Order book, end of period 905 4.472 -23% 905 4472 -23% 1.024 Sales 425 503 16% 4.280 1.540 AT% 2.050 Eco portfolio sales 112 175 -2% 516 517 -0.2% 78 Eco portf
Slide 30: 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 31: 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 32: 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 33: 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) 33
Slide 34: Strong balance sheet
Strong balance sheet Net debt and gearing, MEUR Maturity profile, 30 September 2024 Interest-bearing net debt / EBITDA** 0.4x 34 *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 35: Cash flow remaining strong
Cash flow remaining strong Cash flow from operations before financing items and taxes, MEUR 35 Q1/23 - Q2/24 are carve-out figures
Slide 36: Balance sheet key items
Balance sheet key items 31 Dec 2021 31 Dec 2022 31 Dec 2023 30 Sep 2023 30 Sep 2024 MEUR carve-out carve-out carve-out carve-out Total current assets 1,121 1,266 1,190 1,316 1,114 o/w Cash 103 100 83 77 293 o/w Net Working Capital 62 62 92 150 87 Total non-current assets 638 639 656 654 652 Total As
Slide 37: Cash flow key items
Cash flow key items 2021 2022 2023 Q3 2023 Q3 2024 MEUR carve-out carve-out carve-out carve-out Capital Expenditure 38 60 82 26 20 % Sales 2.5% 3.1% 4.0% 5.2% 4.7% Change in Working Capital -42 12 -32 60 3 % Change in Sales -2.8% 0.6% -1.5% 11.9% 0.7% Cash Flow from Operations Before 88 178 257 131
Slide 38: Making every move count.
Making every move count.
Slide 39: 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