Konecranes Oyj · OMXHEX:KCR
Konecranes Oyj — Konecranes Plc Ord — Q2 2024 Earnings Presentation
30 slides from Konecranes Oyj's earnings presentation, Jul 26, 2024
Slide 1: Q2 2024 Report
July26, 2024 Q2 2024 Report Anders Svensson, Presidentand CEO Teo Ottola, CFO
Slide 2: Important Notice
Important Notice The following applies to this presentation, the oral presentation of the information in this presentation by Konecranes Abp (the “Company” or “Konecranes”) or any person on behalf of the Company, and any question-and-answer session that follows the oral presentation (collectively, t
Slide 3: Agenda
Agenda Anders Svensson 1. Quarter’s highlights p. 4 President and CEO 2. Market environment p. 5 3. Group financial performance p. 7 4. Demand outlook & financial guidance p. 11 Teo Ottola 5. Group profitability bridge p. 14 CFO 6. Business segments p. 15 7. Net working capital & free cash flow p. 1
Slide 4: Q2 2024 – Record-high comparable EBITA margin in all business segments
Q2 2024 –Record-high comparable EBITA margin in all business segments Order intake Net sales (MEUR) (MEUR) Demand environment remained healthy in Q2 -11% +13% • Orders -11.6% Y/Y (comp. FX) 1,093 1,032 968 913 • Sales €1,032 million, +13.0% Y/Y (comp. FX) Record-high comparable EBITA-% of 14.3% • Y/
Slide 5: Market environment – Service and Industrial Equipment
Market environment – Service and Industrial Equipment EU capacity utilization rate, % US capacity utilization rate, % Manufacturing PMIs – Brazil, India & China 90 European Union (27 countries) 90 Total industry Manufacturing Brazil India China 75 85 85 70 78.8 65 80 80 78.7 60 75 75 77.7 55 70 70 5
Slide 6: Market environment – Port Solutions
Market environment – Port Solutions RWI/ISL Container Throughput Index (2015 = 100) Monthly index change Y/Y, % 160 20 140 129.9 15 120 10 +6% 100 5 Y/Y 80 0 5/2024 60 -5 40 -10 20 -15 0 -20 5/14 5/15 5/16 5/17 5/18 5/19 5/20 5/21 5/22 5/23 5/24 5/14 5/15 5/16 5/17 5/18 5/19 5/20 5/21 5/22 5/23 5/24
Slide 7: Group order intake and net sales
Group order intake and net sales Order intake, MEUR(1) Order intake 1500 1082 1093 -11.5% -11.6% 968 Y/Y reported Y/Y comp. FX 1000 • EUR 967.7 million 500 • Increase in Service, decrease in Industrial Equipment and Port Solutions • Increase in APAC, decrease in EMEA and in 0 the Americas Q2/22 Q3/2
Slide 8: Group order book
Group order book Order book, MEUR Order book -12.4% -12.8% Y/Y reported Y/Y comp. FX • EUR 2,987.1 million • Decrease in Service, Industrial Equipment and Port Solutions 8 PUBLIC
Slide 9: Group comparable EBITA
Group comparable EBITA Comparable EBITA, MEUR & margin-% Comp. EBITA C. EBITA-% R12M c. EBITA-% Comparable EBITA 14.3% 150 147 14.3% +3.5 pp margin Y/Y 12.3% 125 11.0% • EUR 147.3 million 10.8% • Comparable EBITA-% increase in Service, 98 Industrial Equipment and Port Solutions 100 9.3% • Comparable
Slide 10: Progress towards Konecranes' financial targets
Progress towards Konecranes’ financial targets Group Service Industrial Equipment Port Solutions Target: 12-15%(1) Target: 20-24%(1) Target: 8-10%(1)(2) Target: 9-11%(1) 20.8 19.9 18.5 18.6 17.2 16.6 12.3 11.4 9.8 9.5 8.3 8.2 8.5 7.8 7.8 7.4 7.5 7.0 6.3 5.6 3.5 2.3 2.7 1.5 2019 2020 2021 2022 2023 Q
Slide 11: Demand outlook
Demand outlook Within industrial customer segments: Within port customers: Global container throughput continues on a high level, and long-term prospects related Americas EMEA Asia-Pacific to global container handling remain good overall. Our demand environment within industrial customer segments ha
Slide 12: Financial guidance for 2024
Financial guidance for 2024 Net sales expected to remain approximately on the same level or to increase in 2024 compared to 2023. Comparable EBITA margin expected to improve in 2024 compared to 2023. 12
Slide 13: Agenda
Agenda Anders Svensson 1. Quarter’s highlights p. 4 President and CEO 2. Market environment p. 5 3. Group financial performance p. 7 4. Demand outlook & financial guidance p. 11 Teo Ottola 5. Group profitability bridge p. 14 CFO 6. Business segments p. 15 7. Net working capital & free cash flow p. 1
Slide 14: Q2 2024 comparable EBITA bridge
Q2 2024 comparable EBITA bridge MEUR(1) 250 200 74 -13 -13 0 147 150 98 100 14.3% 10.8% Comparable EBITA 50 margin Comparable EBITA margin 0 Comparable EBITA Volume, Variable Fixed FX translation Comparable EBITA Q2 2023 pricing & mix costs costs impact Q2 2024 Note (1): Volume, pricing & mix, Varia
Slide 15: Service
Service Order intake and net sales, MEUR (1) Orders received Net sales • Increase in field service and parts Order intake 600 • Increase in the Americas and EMEA, +8.5% decrease in APAC 406396 Y/Y reported 367 374 365 Agreement base: 400 319 +8.5% • EUR 331.8 million , +5.7% Y/Y Y/Y comp. FX • +5.9%
Slide 16: Industrial Equipment
Industrial Equipment Order intake and net sales, MEUR (1)(2) • External orders -10.9% Y/Y comp. FX Orders received Net sales Order intake 600 • Increase in standard cranes and -8.3% components, decrease in process Y/Y reported 386 cranes(2) 400 332305 275 305327 -8.5% • Decrease in EMEA, Americas an
Slide 17: Port Solutions
Port Solutions Order intake and net sales, MEUR (1) Orders received Net sales Order intake • Increase in APAC, decrease in EMEA and 600 Americas -26.7% 408 420 Y/Y reported • Good order intake in Mobile Harbor 400 348 Cranes and Straddle Carriers 237 278 308 -26.9% Y/Y comp. FX 200 Net sales Order b
Slide 18: Net working capital and free cash flow
Net working capital and free cash flow Net working capital, MEUR and percentage of sales (1)(2) Free cash flow, MEUR 600 NWC % of R12M sales R12M FCF FCF 800 500 700 400 352 600 300 283 12.0% 11.2% 500 11.4% 458 424 200 400 381 100 77 300 114 22 0 -31 200 100 -100 0 -200 Q2/22 Q3/22 Q4/22 Q1/23 Q2/2
Slide 19: Gearing and return on capital employed
Gearing and return on capital employed Equity & net debt, MEUR and gearing, % Capital employed, MEUR and comp. return on capital employed, % 2000 Equity Net debt Gearing-% Capital employed Comp. ROCE-% 4000 20.2% 1750 55.1% 1634 43,2% 3500 17.2% 1500 1435 1271 3000 13.0% 1250 2322 2592 2422 2500 100
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Slide 21: Appendix
@ 2023 Konecranes. All rights reserved. 'Konecranes', 'Moves what matters' and 21 are either registered trademarks or trademarks of Konecranes Global Corporation. Appendix PUBLIC
Slide 22: Group R12M sales split
Group R12M sales split Group R12M sales by segment Group R12M sales by offering type(1) Group R12M sales by region 34% 36% 14 % 46 % 42 % Service APAC EMEA Port Solutions Total service 1536 MEUR 556 MEUR 1883 MEUR 1467 MEUR 1794 MEUR % % % of R12M of R12M of R12M sales sales sales 29% 58% 40 % Indus
Slide 23: Service agreement base and order book by segment
Service agreement base and order book by segment Service agr. base & order book, MEUR Industrial Equipment order book, MEUR Port Solutions order book, MEUR 1000 Order book Agreement base 1966 1600 2000 1604 750 1200 1500 1406 962 968 912 477 471 457 500 800 1000 332 314 310 250 400 500 0 0 0 Q2/22 Q
Slide 24: Group key figures 1/2
Group key figures 1/2 EUR million 4-6/ 4-6/ Change % Change % 1-6/ 1-6/ Change % Change % 1-12/ 2024 2023 Comp. FX 2024 2023 Comp. FX 2023 Orders received, MEUR 967.7 1092.9 -11.5 -11.6 1876.8 2382.5 -21.2 -21.0 4,161.4 Order book at end of period, MEUR 2987.1 3411.4 -12.4 3,040.8 Sales total, MEUR
Slide 25: Group key figures 2/2
Group key figures 2/2 EUR million 1-6/ 1-6/ Change % 1-12/ 2024 2023 2023 ROCE, %, (R12M) 19.2 15.5 23.9 16.4 Return on equity, %, (R12M) 21.2 17.9 18.4 18.2 Equity per share (EUR) 20.63 18.12 13.9 20.14 Net debt / Comparable EBITDA, (R12M) 0.7 1.3 -43.1 0.7 Equity to asset ratio, % 41.7 38.9 7.2 41
Slide 26: Key figures by segment
Key figures by segment EUR million 4-6/ 4-6/ Change % Change % 1-6/ 1-6/ Change % Change % 1-12/ 2024 2023 Comp. FX 2024 2023 Comp. FX 2023 Service Orders received, MEUR 406.4 374.5 8.5 8.5 794.9 753.3 5.5 6.2 1,490.7 Agreement base value, MEUR 331.8 313.9 5.7 5.9 331.8 313.9 5.7 5.9 318.3 Sales, ME
Slide 27: Statement of income
Statement of income EUR million 4-6/ 4-6/ Change % 1-6/ 1-6/ Change % 1-12/ 2024 2023 2024 2023 2023 Sales 1031.5 913.0 13.0 1944.6 1812.3 7.3 3,966.3 Other operating income 3.1 2.9 7.7 5.8 9.5 Materials, supplies and subcontracting -436.7 -385.4 -796.6 -764.3 -1,820.3 Personnel cost -312.3 -292.3 -
Slide 28: Balance sheet
Balance sheet EUR million 30 Jun 30 Jun EUR million 30 Jun 30 Jun 2024 2023 2024 2023 Non-current assets 2007.4 2006.4 Total Equity 1633.7 1,434.8 Goodwill 1044.3 1,038.7 Non-current liabilities 808.4 1,278.2 Intangible assets 451.8 475.7 Interest-bearing liabilities 428.9 907.9 Property, plant and
Slide 29: Cash flow statement
Cash flow statement EUR million 1-6/ 1-6/ 1-12/ 2024 2023 2023 Operating income before change in net working capital 277.6 237.7 520.7 Change in net working capital -99.5 52.8 121.9 Cash flow from operations before financing items and taxes 178.1 290.5 642.6 Financing items and taxes -83.1 -37.4 -85
Slide 30: Thank you
Thank you are either registered trademarks or trademarks of Konecranes Global Corporation. @ 2023 Konecranes. All rights reserved. 'Konecranes', 'Moves what matters' and Contact information Kiira Fröberg Vice President, Investor Relations Email: kiira.froberg@konecranes.com, tel: +358 20 427 2050 Ru