Konecranes Oyj · OMXHEX:KCR
Konecranes Oyj — Investor Presentation (July 2023)
126 slides from Konecranes Oyj's investor presentation, July 2023
Slide 1: Konecranes Investor Presentation
Konecranes Investor Presentation July 2023
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 1. Konecranes in brief 2. Updated strategy & financial targets 3. Key financials development 4. Konecranes as an investment 5. Segment overviews 6. Appendix 7. Latest quarterly result presentation
Slide 4: 1. Konecranes in brief
1. Konecranes in brief
Slide 5: Shaping next generation material handling for a smarter, safer and better world
Shaping next generation material handling for a smarter, safer 5 and better world Nasdaq Helsinki Headquartered in Active in around Approximately KCR Hyvinkää 50 16,300 since 1996 Finland countries employees, Q2 2023 Orders received Net sales Comparable EBITA Order book 4,227.9 3,364.8 9.5% 2,901.7
Slide 6: Two main customer segments, extensive service coverage and a truly global presence
Two main customer segments, extensive service coverage and 6 a truly global presence Sales by segment, 2022 Sales by offering type, 2022 Sales by region, 2022 28% 38% 44% 13% 51% Port Solutions Service Total service APAC EMEA 1015 MEUR 1343 MEUR 1569 MEUR(1) 450 MEUR 1714 MEUR 34% = 56% 36% Industri
Slide 7: An industry and technology leader in material handling solutions
7 An industry and technology leader in material handling solutions Service and Industrial Equipment Service Industrial Equipment Port Solutions • Specialized maintenance services and • Extensive range of industrial cranes, from • Provides equipment, solutions and service spare parts for all types an
Slide 8: We have a solid platform with leading market positions to build on
8 We have a solid platform with leading market positions to build on Segment Market & position Offering Net sales • Inspections & preventive maintenance 1,343.3 ~10-15 BEUR • Predictive maintenance & remote monitoring MEUR, 2022 38% addressable • Corrective maintenance & retrofits Service core marke
Slide 9: Our broad customer base provides both stability and growth opportunities
Our broad customer base provides both stability and growth 9 opportunities Orders by customer segments, 2022 9% 3% 5% Power Construction Transportation and engineering equipment 7% Metals Container handling General manufacturing Metals production 11% production Distributors 4% Paper and forest Paper
Slide 10: More than 100 years of growth both organically and through strategic acquisitions
More than 100 years of growth both organically and through 10 strategic acquisitions 1930s 1950s 1970s 1990s 2010s 2017 Developing electric Production of harbor Bulk material handling Independent Expansion to emerging Acquisition of hoists cranes starts starts company markets the MHPS business Whiti
Slide 11: Around 16,300 employees and production facilities in the Americas, EMEA and APAC
Around 16,300 employees and production facilities located in 11 the Americas, EMEA and APAC Personnel by region (Jun 30, 2023) EMEA 9,598 59% AME 3,249 20% APAC 3,484 21% Total 16,331 100%
Slide 12: Megatrends that shape Konecranes' markets
Konecranes has identified the following megatrends that shape 12 its markets and provide business opportunities Sustainability Digitalization and automation Geopolitics and macroeconomics Sustainability has become the norm Geopolitical issues change the dynamics Productivity and seamless operations,
Slide 13: Purpose-built componentry, technology innovation and digitalization
We harness the advantages of our purpose-built 13 componentry, technology innovation and digitalization • Core of Lifting comprises purpose-built, integrated package of gearbox, motor, control system and connectivity, made specifically for cranes and lifting motion • Designing and creating the core
Slide 14: We embrace the broader sustainability agenda and support customers' ESG targets
We embrace the broader sustainability agenda and support 14 our customers in achieving their ESG targets Konecranes’ sustainability commitments Konecranes has set ambitious targets for all four commitments and regularly monitors performance and progress We deliver safe and secure We create a fair, i
Slide 15: Our sustainability work has been recognized with leadership ratings
15 Our sustainability work has been recognized with leadership ratings SUSTAINABILITY RATINGS SELECTED HIGHLIGHTS IN 2022: MSCI CDP Environment: ESG Rating Climate A- • Factories powered 100% with renewable electricity 2022(1) Change 2022 • The first fully electric service vehicles taken into use Ec
Slide 16: We have made great progress towards our climate targets
16 We have made great progress towards our climate targets SCIENCE BASED TARGETS PROGRESS OWN OPERATIONS: CO2e tons (million) • 50% absolute GHG emission 5 reduction(1) by 2030 • Target achieved already in 2022! 4 3 TARGET VALUE CHAIN: 2 • 50% absolute GHG emissions 1 by 2030(1), encompassing use of
Slide 17: Carbon neutral own operations by 2030
17 We have raised our ambition and aim at carbon neutral own operations by 2030 2022 2023 2027 2030 All electricity in 1st carbon-neutral Carbon-neutral Carbon-neutral manufacturing manufacturing site manufacturing fleet operations is network renewable
Slide 18: 2. Updated strategy & financial targets
2. Updated strategy & financial targets
Slide 19: Material handling market offers possibility to capture growth
19 Material handling market offers possibility to capture growth Market size estimate (BEUR) Estimated growth Includes our Cranes and hoists1 35-40 current core market Traditional Some Konecranes Industrial trucks and lifts ~45 equipment presence Conveyors 8-10 Our focus Robots 7-10 is on our core b
Slide 20: We have a clear strategy to execute in all our Business Segments
20 We have a clear strategy to execute in all our Business Segments Deliver Improve Industrial Generate profitable Service Equipment growth in growth profitability Port Solutions • Renewed Service Program: • Simplification of go-to market model • Focus on core offering segmented offering driving wit
Slide 21: Our focus is on profitability before embarking on growth
21 Our focus is on profitability before embarking on growth We will manage our businesses by clear mandates for their operations. Depending on the stage of development, the mandates are either for Stability, Profitability or Growth. Port Solutions Equipment Industrial Service PS BU PS BU PS BU PS BU
Slide 22: Our Ambition is to become the world leader in material handling solutions
Our Ambition is to become 22 the world leader in material handling solutions creating value for everyone FINANCIAL TARGETS: 1 • Sales growth faster than the market 2 • Comparable EBITA margin of 12-15% as soon as possible, but no later than in 2027 DIVIDEND POLICY: To pay a stable to increasing divi
Slide 23: Financial targets
23 Financial targets Sales growth faster than the market1 12-15% comparable EBITA margin2 PORT SERVICE INDUSTRIAL EQUIPMENT SOLUTIONS Sales growth Sales growth Sales growth clearly faster than in line with clearly faster than the market1 the market1 the market1 20-24% 8-10% 9-11% comparable EBITA co
Slide 24: We pay a stable to increasing dividend to our shareholders
24 We pay a stable to increasing dividend to our shareholders EUR 3.00 3,00 EPS, basic DPS Dividend/Earnings, % 2.50 2,50 116,5 % Dividend policy 2.00 2,00 93,0 % Stable to 1,86 1,54 1,77 70,6 % increasing 1.50 1,50 1,29 57,1 % 67,2 % 1,25 1,25 dividend 1,20 1,20 1.00 1,00 1,03 0,88(1) per share, ov
Slide 25: Strategic Enablers driving our business forward
Strategic Enablers driving our business forward 25 towards our Ambition and Financial Targets Deepening Scaling Advancing Enhancing Accelerating customer technology responsible our winning efficiency focus innovation business culture Operating model with clear authorization and accountability
Slide 26: We are embedding a winning attitude and growth mindset
26 We are embedding a winning attitude and growth mindset • Engaging culture and values • Competitive mindset • Deliver what we promise • Sense of urgency • Ease of doing business with • Open, proactive communication • Performance management • Continuous improvement
Slide 27: Shaping next generation material handling for a smarter, safer and better world
Shaping next generation material handling 27 for a smarter, safer and better world We have a strong platform to build on and a clear plan to execute: We have… … to take us to the next level ✓ Great people • Sales growth faster than the market1 ✓ A leading position in services and equipment • Compara
Slide 28: Our capital allocation priorities
Our capital allocation 28 priorities Capital expenditure Reinvesting into own operations to grow the business and improve productivity % Dividends Distributing profits to shareholders according to the dividend policy Acquisitions Strengthening the business with bolt-on and adjacent acquisitions € De
Slide 29: 3. Key financials development
3. Key financials development
Slide 30: Order intake
30 Order intake MEUR(1) 5000 4431 4228 4000 3334 3432 3447 2994 3000 2382 2180 +22.7% 2000 +2.9% +15.1% Y/Y +2.6% Y/Y Y/Y -12.7% Y/Y Y/Y +9.3% 1000 Y/Y 0 2018 2019 2020 2021 2022 Q2/23 R12M 1-6/2022 1-6/2023 Note (1): Agreement base included in orders received from Q1 2023 onwards and historical fig
Slide 31: Net sales
31 Net sales MEUR 5000 4000 3718 3327 3365 3156 3179 3186 3000 2000 1812 +0.6% +5.4% -4.4% +0.2% +5.6% 1459 Y/Y Y/Y Y/Y Y/Y Y/Y 1000 +24.2% Y/Y 0 2018 2019 2020 2021 2022 Q2/23 R12M 1-6/2022 1-6/2023
Slide 32: Comparable EBITA margin
32 Comparable EBITA margin MEUR Comparable EBITA Comparable EBITA margin, % 500 407 400 312 318 300 275 11.0% 10.7% 257 261 9.8% 9.5% 8.1% 8.3% 8.2% 7.2% 194 200 105 100 0 2018 2019 2020 2021 2022 Q2/23 R12M 1-6/2022 1-6/2023
Slide 33: Order book
33 Order book MEUR Service Industrial Equipment Port Solutions 5000 +20.7% Y/Y 4000 +42.5% Y/Y 3411 +18.7% 2902 3000 +11.7% +6.3% -6.0% Y/Y Y/Y Y/Y Y/Y 2037 1966 2000 1715 1824 1716 1599 1000 857 968 445 477 0 2018 2019 2020 2021 2022 Q2/23 R12M
Slide 34: 4. Konecranes as an investment
4. Konecranes as an investment
Slide 35: Konecranes as an investment
DEEPENING CUSTOMER FOCUS | ACCELERATING EFFICIENCY | SCALING TECHNOLOGY INNOVATION | ADVANCING RESPONSIBLE BUSINESS | ENHANCING OUR WINNING CULTURE 35 Konecranes as an investment Strong market position Long-term commitment Leader in technology in all Business Segments to sustainability Target for 12
Slide 36: Innovative solutions and a solid patent portfolio make us a technology leader
Leader in technology | Strong market position in all Business Segments | Long-term commitment to sustainability | Attractive opportunities for growth | Target for 12-15% Group comparable EBITA margin | Solid financial position and dividend With many innovative solutions and a solid patent portfolio,
Slide 37: We have a strong market position in all of our three segments
Leader in technology | Strong market position in all Business Segments | Long-term commitment to sustainability | Attractive opportunities for growth | Target for 12-15% Group comparable EBITA margin | Solid financial position and dividend 37 We have a strong market position in all of our three segm
Slide 38: Konecranes works for a decarbonized and circular world
Leader in technology | Strong market position in all Business Segments | Long-term commitment to sustainability | Attractive opportunities for growth | Target for 12-15% Group comparable EBITA margin | Solid financial position and dividend 38 Konecranes works for a decarbonized and circular world Ne
Slide 39: Global leader serving a broad range of customers across multiple industries
Leader in technology | Strong market position in all Business Segments | Long-term commitment to sustainability | Attractive opportunities for growth | Target for 12-15% Group comparable EBITA margin | Solid financial position and dividend Konecranes is a global leader in material handling solutions
Slide 40: Comparable EBITA margin of 12-15% as soon as possible, but no later than 2027
Leader in technology | Strong market position in all Business Segments | Long-term commitment to sustainability | Attractive opportunities for growth | Target for 12-15% Group comparable EBITA margin | Solid financial position and dividend Comparable EBITA margin of 12-15% as soon as possible, 40 bu
Slide 41: A healthy balance sheet enabling long-term development and a stable to increasing dividend
Leader in technology | Strong market position in all Business Segments | Long-term commitment to sustainability | Attractive opportunities for growth | Target for 12-15% Group comparable EBITA margin | Solid financial position and dividend A healthy balance sheet enabling long-term development & 41
Slide 42: Konecranes as an investment
42 Konecranes as an investment 1. Leader in technology 2. Strong market position in all Business Segments 3. Long-term commitment to sustainability • Own key componentry: gears, motor and controls enable • In Service, we are the market leader with our unique • We enable a decarbonized and circular w
Slide 43: 5. Segment overviews
5. Segment overviews
Slide 44: Service
5. SEGMENT OVERVIEWS Service
Slide 45: Service in brief
Service | Industrial Equipment | Port Solutions 45 Service in brief Key financials, MEUR Margin, % 7,859 1800 employees (end of Q2 2023) 1343 1190 1205 1200 38% 1,343.3 17,2% 18,5% 18,6% of Group sales net sales, MEUR (2022) 600 205 222 249 (2022) 0 18.6% 2020 2021 2022 comp. EBITA margin (2022) Net
Slide 46: Service: focus on growth
Service | Industrial Equipment | Port Solutions Service: focus on growth SERVICE • Service Programs renewal / Agreement base expansion • Enhanced customer experience/journey • Commercial Excellence / Price Management • Continued optimization of sales and service delivery • Equivalent Parts for third
Slide 47: Market leader with our unique global service branch network
Market leader with our unique global service branch network 47 and unmatched service offering 10% SERVICE: SERVICE: SERVICE: EMEA AME APAC Service 10-15B€ market ~15% ~15% <5% market share market share market share Industrial Service market Service market size/market share includes all maintenance s
Slide 48: Service business model – managing assets throughout the lifecycle
Service | Industrial Equipment | Port Solutions 48 Service business model – managing assets throughout the lifecycle Inspections, Preventive Maintenance, Predictive Maintenance Agreement Sales, Inside Sales ~20% New business development and renewals of sales Lead generation Corrective Maintenance In
Slide 49: Agreement base breakdown by hoist brand and coverage ratios
Service | Industrial Equipment | Port Solutions Agreement base breakdown by hoist brand and coverage ratios 49 by asset brand Agreement base / breakdown by hoist brand Agreement base / asset coverage by asset (crane) brand % Konecranes 60 2020 50 2017 45% 40 2020 Third Parties Demag 30 2017 55% 20 A
Slide 50: Achieving organic Service growth
Service | Industrial Equipment | Port Solutions 50 Achieving organic Service growth AGREEMENT BASE (M€) 350 1. Expand agreement base 250 • Renewed/targeted Service Programs • Comprehensive agreements for critical/production assets with larger accounts 150 • Enhanced customer experience driving custo
Slide 51: Renewed Service Programs tailored to customer segments
Service | Industrial Equipment | Port Solutions Renewed Service Programs – each tailored to a different 51 customer segment to enhance customer experience and retention CONDITION CARE COMMITMENT COMPLETE
Slide 52: Digital enablers in Service
Service | Industrial Equipment | Port Solutions Digital enablers in Service – Helping us enhance the customer 52 experience and to deliver services more efficiently UNIFIED CUSTOMER PORTAL CUSTOMER ENGAGEMENT / SALES ENABLEMENT/ OFFER CONFIGURATION • Engaging content focused on • Consolidated custom
Slide 53: Acquisition opportunities across various sectors
Service | Industrial Equipment | Port Solutions 53 Acquisition opportunities across various sectors BOLT-ON ACQUISITIONS TECHNOLOGIES / CAPABILITIES • Targeting installed base, service opportunities • Industrial automation, systems integration, • Adding certain customer segments and field material f
Slide 54: Technicians are at the heart of our success and key to our growth
Service | Industrial Equipment | Port Solutions Technicians are at the heart of our success and key to our 54 growth IMPROVE PRODUCTIVITY INCREASE RETENTION ACTIVELY RECRUIT Field operative time and tasks focused on Continuously improving the employee Always searching for our future talent our custo
Slide 55: Industrial Equipment
5. SEGMENT OVERVIEWS Industrial Equipment
Slide 56: Industrial Equipment in brief
Service | Industrial Equipment | Port Solutions 56 Industrial Equipment in brief Key financials, MEUR Margin, % 5,240 1800 employees (end of Q2 2023) 1206 1120 1089 1200 34% 1,205.6 3,5% of Group sales 600 2,3% 2,7% net sales, MEUR (2022) (2022) 25 38 33 0 2.7% 2020 2021 2022 comp. EBITA margin (202
Slide 57: Industrial Equipment: focus on profitability
Service | Industrial Equipment | Port Solutions Industrial Equipment: focus on profitability EQUIPMENT • Go-to market / operating model simplification • Platform harmonization/rationalization • Commercial Excellence / Price Management • Renewed offering • Supply chain efficiency / Operational Excell
Slide 58: Global market leader in industrial cranes
58 Global market leader in industrial cranes 15% LIGHT LIFTING STANDARD CRANES/ PROCESS EQUIPMENT WIRE ROPE HOISTS 1 CRANES Equipment ~10B€ market ~10% 20-25% 5-10% market share market share market share Industrial Equipment market Equipment market share is adjusted for hoist and component packages
Slide 59: Industrial Equipment offering – leading provider of industrial cranes
Service | Industrial Equipment | Port Solutions Industrial Equipment offering – leading provider of industrial 59 cranes Components Standard Cranes Process Cranes (Engineered-to-order) Waste-to-energy Automotive & Biomass Hoists Overhead cranes (Wire rope hoist, electric chain hoist and winches) (Co
Slide 60: Simplifying our go-to-market strategy drives agility and efficiency
Service | Industrial Equipment | Port Solutions 60 Simplifying our go-to-market strategy drives agility and efficiency END USERS END USERS • Industrial Equipment consists of three businesses: Components, Standard cranes, and Process cranes • On average, in the long-term and over the CRANE BUILDERS,
Slide 61: Global presence with strong portfolio of leading industrial crane brands
Service | Industrial Equipment | Port Solutions Global presence with strong portfolio of leading industrial crane 61 brands AMERICAS EMEA APAC END USER CHANNEL END USER CHANNEL END USER CHANNEL DISTRIBUTION CHANNEL DISTRIBUTION CHANNEL DISTRIBUTION CHANNEL
Slide 62: Product harmonization and digitalization drive profitability
Service | Industrial Equipment | Port Solutions 62 Product harmonization and digitalization drive profitability Core of Lifting “purpose built” components enable competitiveness and economies of scale TARGET 2023-2025 PRODUCT OFFERING PLATFORMS 2018 PLATFORMS 2022* BENEFITS OF SCALABILITY GLOBAL PLA
Slide 63: Next Generation Light Lifting Equipment
Service | Industrial Equipment | Port Solutions 63 Next Generation Light Lifting Equipment Delivering growth opportunities and enhanced profitability NEW ELECTRIC CHAIN HOIST PLATFORM EXPANDED LIGHT CRANE SYSTEM OFFERING • Full range offering: basic/competitive through advanced/premium • Expanded ra
Slide 64: Improving process cranes profitability
Service | Industrial Equipment | Port Solutions Process Cranes – improving process cranes profitability through 64 productization, commercial and project management excellence ASSEMBLY DUTY PROCESS DUTY TAILORED A General B Industry-specific C Tailored Demanding applications in general industry, pow
Slide 65: Evaluating our manufacturing footprint
Service | Industrial Equipment | Port Solutions We continue to evaluate our manufacturing footprint to ensure 65 agility and competitiveness in changing environments and conditions • Crane manufacturing capacity supplemented by subcontracting network • Component manufacturing centralized in global a
Slide 66: Port Solutions
5. SEGMENT OVERVIEWS Port Solutions
Slide 67: Port Solutions in brief
Service | Industrial Equipment | Port Solutions 67 Port Solutions in brief Key financials, MEUR Margin, % 3,133 1800 employees (end of Q2 2023) 1200 1066 1073 1015 28% 1,015.0 7,4% 6,3% of Group sales net sales, MEUR (2022) 600 5,6% (2022) 60 80 64 0 6.3% 2020 2021 2022 comp. EBITA margin (2022) Net
Slide 68: Port Solutions offering – widest and deepest offering for container handling
Service | Industrial Equipment | Port Solutions Port Solutions offering – widest and deepest offering for 68 container handling… Port Services Lift Trucks Container Handling Equipment Mobile Harbour Cranes (MHC) Service & maintenance, Ship-To-Shore inspections, spare parts, cranes modernizations, re
Slide 69: Covering equipment, automation solutions, software & services
Service | Industrial Equipment | Port Solutions …covering equipment, automation solutions, software & 69 services PS offering video ►
Slide 70: The complete solution for the Path to Port Automation
Service | Industrial Equipment | Port Solutions The complete solution for the Path to Port Automation lifting 70 terminals to higher productivity and efficiency Konecranes Terminal Operating System (TOS) Software In-house software (TOS & ECS) Equipment Control System (ECS) Remote operation at any st
Slide 71: Fully-electric offering and Path to Ecolifting
Service | Industrial Equipment | Port Solutions A comprehensive fully-electric offering and Path to Ecolifting 71 & retrofits to increase efficiency and lower emissions Ecolifting video ► Path to Ecolifting & 1. Optimized 2. Hybrid 3. Fully-electric Equipment examples with fully-electric drive equip
Slide 72: Megatrends and other demand drivers providing opportunities for growth
Service | Industrial Equipment | Port Solutions Megatrends and other demand drivers providing 72 opportunities for growth As customers continue to seek increased productivity, enhanced safety and improved predictability Digitalization eCommerce & Sustainability Labour Geopolitics & Automation change
Slide 73: Equipment market position and development
Service | Industrial Equipment | Port Solutions 73 Equipment market position and development Market continues to grow ~10%1 • Global Terminal Operators (GTOs) handle 2/3 of global container throughout and drive the growth • Consolidation of the customer base continues as GTOs expand their global cov
Slide 74: Port Services market position and development
Service | Industrial Equipment | Port Solutions 74 Port Services market position and development ~5% Port Services market expected to grow • Majority of total market is today in-house/insourced • Inland terminals more geared for outsourcing than maritime terminals • Outsourcing driven by aging labou
Slide 75: We aim to become the World #1 in our core offering
Service | Industrial Equipment | Port Solutions 75 We aim to become the World #1 in our core offering Financial targets: We capture the market opportunity and reach our targets by: • Sales growth clearly faster than the market1 1. Focusing on our core offering with best growth potential • Comparable
Slide 76: Market provides plenty of opportunities for growth
Service | Industrial Equipment | Port Solutions 76 Market provides plenty of opportunities for growth Service AGV ASC (ARMG) Lift trucks Mobile harbor (A)RTG Straddle cranes cranes carriers Market size ~8-9 B€1 ~0.3 B€ ~1.5 B€2 ~2 B€3 ~0.6 B€ ~1.5 B€2 ~0.4 B€ Global #1-2, #1 in #2 #1-2 #1-2 #2-3 #1-
Slide 77: We focus on products with the best growth potential
Service | Industrial Equipment | Port Solutions 77 We focus on products with the best growth potential With the rest of the product portfolio, our focus is on market share and profitability Lift trucks Mobile harbor (A)RTG Straddle Service AGV ASC (ARMG) cranes cranes carriers Market trend Our futur
Slide 78: We aim to grow Port Services faster than equipment over the cycle
Service | Industrial Equipment | Port Solutions We aim to grow Port Services faster than equipment 78 over the cycle KONECRANES PORT SERVICES FACTS Increasing Boosting Geographic eCommerce & footprint own and 3rd party fleet digital expansion 22% channels Share of sales 23 countries with own Data en
Slide 79: We are leading port automation
Service | Industrial Equipment | Port Solutions 79 We are leading port automation 65% of all the world’s automated container terminals run with Konecranes and more in delivery Inventor of Largest western Best performing Pioneer of AGV ASC/ARMG ECS ARTG +700 units +400 units +10 sites +200 units
Slide 80: We capture automation opportunities in all terminals
Service | Industrial Equipment | Port Solutions We capture automation opportunities in all terminals 80 with our widest and deepest offering LARGE MEDIUM-SIZED SMALL-SIZED EXISTING SITES AUTOMATED CONTAINER CONTAINER WITH CONTAINER TERMINALS TERMINALS EXPANSIONS AND TERMINALS REPLACEMENTS With our A
Slide 81: 6. Appendix
91.45% > yr —~ KONEGRANES
Slide 82: Konecranes at a glance
82 Konecranes at a glance Key figures, 2022 Konecranes Service Industrial Port Eliminations / Group Equipment Solutions Group Orders received(1) 4,227.9 1,442.5 1,391.6 1,655.3 -261.6 MEUR MEUR MEUR MEUR MEUR Order book 2,901.7 445.5 857.2 1,599.0 MEUR MEUR MEUR MEUR Net sales 3,364.8 1,343.3 1,205.
Slide 83: Konecranes key financials development
83 Konecranes key financials development Orders received, MEUR(1) Net sales, MEUR Comp. EBITA, MEUR & comp. EBITA-% 22,7% 5,4% 5,6% 9,8% 4500 15,1% 4500 0,6% 0,2% 450 9,5% 4228 -4,4% 2,6% 2,9% (4,1%) (1,8%) (3,0%) (0,7%) (-3,0%) 4000 -12,7% 4000 400 8,3% 8,2% 8,1% 3432 3447 3365 3500 3334 3500 3327
Slide 84: Strong eco-efficient equipment offering combined with services
Konecranes has a strong eco-efficient equipment offering 84 combined with services to extend product lifecycles Eco portfolio sales by segment, 1-6/2023(1)(2) Eco portfolio share of Group sales, % 4000 100% Eco portfolio sales Eco portfolio sales 3 365 90% 3500 3 179 3 186 49 % 17 % 80% of Port Solu
Slide 85: Konecranes Board of Directors
85 Konecranes Board of Directors Christoph Vitzthum Pasi Laine Pauli Anttila Ulf Liljedahl Niko Mokkila Chair of the Board Vice Chair of the Board Member of the Board Member of the Board Member of the Board(1) Gun Nilsson Päivi Rekonen Helene Svahn Sami Piittisjärvi Member of the Board Member of the
Slide 86: Konecranes Board of Directors
86 Konecranes Board of Directors Board independence • All Board members with the exception of Pauli Anttila are deemed to be independent of the Company's significant shareholders(1) 9 78% • Pauli Anttila is deemed not to be independent of a significant shareholder of the Company based on his current
Slide 87: Konecranes Leadership Team
87 Konecranes Leadership Team Anders Svensson Teo Ottola Fabio Fiorino Mika Mahlberg 7 President and CEO CFO, Executive Vice President, Executive Vice President, Konecranes Leadership Deputy CEO Industrial Service and Equipment Port Solutions Team members(1) 29% women Juha Pankakoski Anneli Karkovir
Slide 88: We have a strong balance sheet with financial flexibility
88 We have a strong balance sheet with financial flexibility Equity & net debt, MEUR and gearing, % 2000 Equity Net debt Gearing, % Target, % 1750 Gearing target: <80% 1500 1433 1435 1361 1284 1247 1251 Mid-term target 1250 for debt level 52,6% <80% 48,0% 1000 46,1% 42,5% 43,2% 39,8% 750 655 688 gea
Slide 89: Group interest-bearing liabilities and net debt
89 Group interest-bearing liabilities and net debt Structure and maturity profile of interest-bearing liabilities (Dec 31, 2022) Interest-bearing net debt (Jun 30, 2023) MEUR 2% 1% EUR million 30 Jun 30 Jun 31 Dec 25,0 MEUR 11,9 MEUR 1 200 2023 2022 2022 13% 140,5 MEUR 1 009 1 000 Non current intere
Slide 90: Capital expenditure, depreciation and R&D expenditure
90 Capital expenditure, depreciation and R&D expenditure Capital expenditure and depreciation, MEUR(1) Research and development, MEUR and percentage of sales 120 60 5% 100 50 48,5 47,7 47,7 99 4% 94 93 42,1 41,1 80 87 40 82 3% 60 30 2% 50 40 20 1,5% 1,5% 43 1,4% 1,3% 40 1,2% 35 37 1% 20 10 0 0 0% 20
Slide 91: Net working capital development
Our net working capital development is driven by timing of 91 projects and delivery capability Net working capital, MEUR and percentage of sales(1) 800 NWC, restated % of R12M sales, restated Target, % 700 14,6% 11,4% 600 11,0% NWC target: <12% 9,8% 10,0% Mid-term target 490 500 for net working capi
Slide 92: Free cash flow and return on capital employed
92 Free cash flow and return on capital employed Free cash flow, MEUR Capital employed, MEUR and comp. return on capital employed, % 400 4000 Capital employed Comp. ROCE-% 366 17,2% 350 3500 300 283 3000 13,4% 12,5% 12,7% 2539 250 2500 2422 13,4% 2422 2281 11,1% 2226 2061 200 2000 149 150 138 1500 1
Slide 93: Operating expenses
93 Operating expenses EUR million 1-12/ 1-12/ 1-12/ Operating expenses, MEUR and operating expenses, % of sales 3500 2020 2021 2022 3025 Change in work in progress 10.5 -35.0 -170.9 3000 2886 2857 12,6% Production for own use -0.6 -0.7 -1.1 13,2% 4,2% 13,2 % 2500 3,4% Material and supplies 1,062.0 1
Slide 94: Dividend per share and pay-out ratio development
94 Dividend per share and pay-out ratio development Dividend per share, EUR and dividend/earnings ratio, % 2,00 250% 1.25 EUR Dividend per share Dividend/earnings Average Dividend/earnings dividend for 2022 200% 1,50 84% 1,25 1,25 average dividend pay-out 1,20 1,20 1,20 ratio for 2005–2022 150% 1,05
Slide 95: Major shareholders and distribution of ownership
95 Major shareholders and distribution of ownership Ownership structure (as at Jun 30, 2023) Major shareholders (as at Jun 30, 2023) Shareholder # of shares Shares, % 1 Solidium Oy 8,793,123 11.10 2 Gustavson Stig and family(1) 2,366,157 2.99 % 3 Varma Mutual Pension Insurance Company 2,085,293 2.63
Slide 96: 7. Latest quarterly result presentation
7. Latest quarterly result presentation
Slide 97: Q2 2023 Report
Q2 2023 Report Anders Svensson, President and CEO Teo Ottola, CFO July 26, 2023
Slide 98: 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 99: Agenda
99 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
Slide 100: Q2 2023 – Sustained strong performance
100 Q2 2023 – Sustained strong performance Strong financial performance in Q2 Order intake Net sales (MEUR) (MEUR) +1% +16% Orders increased and exceeded €1.0 billion again 1,082 1,093 • Demand environment remained good despite weakened economic 787 913 macro-indicators • Orders growth in Service an
Slide 101: Market environment – Service and Industrial Equipment
101 Market environment – Service and Industrial Equipment EU capacity utilization rate, % US capacity utilization rate, % Manufacturing PMIs – Brazil, India & China 90 90 75 European Union (27 countries) Total industry Manufacturing Brazil India China 70 85 85 78.9 65 80 80 81.0 60 75 75 78.0 55 70
Slide 102: Market environment – Port Solutions
102 Market environment – Port Solutions RWI/ISL Container Throughput Index (2015 = 100) Monthly index change Y/Y, % 160 20 140 15 123.4 120 10 100 5 -1% 80 Y/Y 0 5/2023 60 -5 40 -10 20 -15 0 -20 5/13 5/14 5/15 5/16 5/17 5/18 5/19 5/20 5/21 5/22 5/23 5/13 5/14 5/15 5/16 5/17 5/18 5/19 5/20 5/21 5/22
Slide 103: Group order intake and net sales
103 Group order intake and net sales Order intake, MEUR(1) Order intake 1500 +1.0% +3.5% 1082 1093 Y/Y reported Y/Y comp. FX 1000 874 • EUR 1,092.9 million 500 • Increase in Service and Port Solutions, decrease in Industrial Equipment • Increase in the Americas, decrease in EMEA 0 Q2/21 Q3/21 Q4/21
Slide 104: Group order book
104 Group order book Order book, MEUR Service Industrial Equipment Port Solutions Order book 4500 +20.7% +25.1% Y/Y reported Y/Y comp. FX 3750 3411 • EUR 3,411.4 million • Increase in all three segments 3000 2825 2250 1975 1500 750 0 Q2/21 Q3/21 Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23
Slide 105: Group comparable EBITA
105 Group comparable EBITA Comparable EBITA, MEUR & margin-% Comp. EBITA Comp. EBITA-% R12M comp. EBITA-% Comparable EBITA 150 10.8% +3.0 pp margin Y/Y 125 11.0% • EUR 98.3 million 10.8% • Comparable EBITA-% increase in Service 9.6% 98 and Industrial Equipment, decrease in Port 100 9.3% Solutions 8.
Slide 106: Progress towards Konecranes' financial targets
106 Progress towards Konecranes’ financial targets Group Service Industrial Equipment Port Solutions 19.8% 18.5% 18.6% 17.2% 16.6% 15.1% 11.0% 9.8% 9.5% 8.1% 8.3% 8.2% 7.8% 7.4% 7.0% 6.8% 6.3% 5.6% 5.6% 3.7% 3.5% 2.3% 2.7% 1.5% 2018 2019 2020 2021 2022 Q2/23 2018 2019 2020 2021 2022 Q2/23 2018 2019
Slide 107: Q3 2023 demand outlook
107 Q3 2023 demand outlook The worldwide demand picture remains subject to volatility and uncertainty. Within industrial customer segments: Within port customers: Global container throughput continues on a high level, and long-term prospects related to global Americas EMEA Asia-Pacific container han
Slide 108: Financial guidance for full-year 2023
108 Financial guidance for full-year 2023 Net sales expected to increase in full-year 2023 compared to 2022. Comparable EBITA margin expected to improve in full-year 2023 from 2022.
Slide 109: Agenda
109 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
Slide 110: Q2 2023 comparable EBITA bridge
110 Q2 2023 comparable EBITA bridge MEUR(1) 250 200 87 -35 150 -12 -2 98 100 61 10.8% 50 7.7% Comparable EBITA margin Comparable EBITA margin 0 Comparable EBITA Volume, Variable Fixed FX translation Comparable EBITA Q2 2022 pricing & mix costs costs impact Q2 2023 Note (1): Volume, pricing & mix, Va
Slide 111: Service
111 Service Order intake and net sales, MEUR(1) Orders received Net sales Order intake • Increase in field service, parts orders approx. flat 600 • Increase in the Americas, approx. flat in EMEA +2.1% and decrease in APAC Y/Y reported 400 367 374 365 Agreement base: 321 299 319 +4.7% • EUR 313.9 mil
Slide 112: Industrial Equipment
112 Industrial Equipment Order intake and net sales, MEUR(1) Orders received Net sales Order intake • External orders -2.0% Y/Y comp. FX 600 • Decrease in process cranes and -9.8% components, increase in standard cranes Y/Y reported 400 386 348 330 • Decrease in EMEA and APAC, increase in 332 275 -8
Slide 113: Port Solutions
113 Port Solutions Order intake and net sales, MEUR(1) Orders received Net sales Order intake • Increase in the Americas, decrease in EMEA 600 and APAC +3.1% 408 420 Y/Y reported 400 275 278 +5.7% 243 237 Y/Y comp. FX 200 Net sales Order book: 0 • EUR 1,966.1 million, +39.8% Y/Y Q2/21 Q3/21 Q4/21 Q1
Slide 114: Net working capital and free cash flow
114 Net working capital and free cash flow Net working capital, MEUR and percentage of sales(1)(2) Free cash flow, MEUR 800 600 NWC % of R12M sales R12M FCF FCF 700 500 600 400 12.0% 292 283 500 11.4% 300 424 400 9.3% 381 200 295 300 100 77 114 15 200 0 -31 100 -100 0 -200 Q2/21 Q3/21 Q4/21 Q1/22 Q2
Slide 115: Gearing and return on capital employed
115 Gearing and return on capital employed Equity & net debt, MEUR and gearing, % Capital employed, MEUR and comp. return on capital employed, % 2000 4000 Equity Net debt Gearing-% Capital employed Comp. ROCE-% 55.1% 17.2% 1750 50.6% 3500 43.2% 1500 1435 3000 13.0% 13.0% 1271 1235 2422 1250 2500 232
Slide 116: KONECRANES
KONECRANES
Slide 117: Appendix
Appendix 91.45% > yr —~ KONEGRANES
Slide 118: Group R12M sales split
118 Group R12M sales split Group R12M sales by segment Group R12M sales by offering type(1) Group R12M sales by region 29% 37% 42 % 13 % 52 % Port Solutions Service Total service APAC EMEA 1152 MEUR 1441 MEUR 1670 MEUR 490 MEUR 1936 MEUR % % % of R12M of R12M of R12M sales sales sales 34% 58% 35 % I
Slide 119: Service agreement base and order book by segment
119 Service agreement base and order book by segment Service agreement base & order book, MEUR Industrial Equipment order book, MEUR Port Solutions order book, MEUR 1000 1600 2000 1966 Order book Agreement base 750 1200 1500 1406 962 968 477 983 457 500 800 1000 718 314 310 283 273 250 400 500 0 0 0
Slide 120: Group key figures 1/2
120 Group key figures 1/2 EUR million 4-6/ 4-6/ Change % Change % 1-6/ 1-6/ Change % Change % 1-12/ At comparable At comparable 2023 2022 currencies 2023 2022 currencies 2022 Orders received, MEUR 1,092.9 1,082.1 1.0 3.5 2,382.5 2,179.7 9.3 10.4 4,227.9 Order book at end of period, MEUR 3,411.4 2,82
Slide 121: Group key figures 2/2
121 Group key figures 2/2 EUR million 1-6/ 1-6/ Change % 1-12/ 2023 2022 2022 ROCE, %, (R12M) 15.5 6.8 127.9 9.0 Return on equity, %, (R12M) 17.9 8.5 110.6 9.9 Equity per share (EUR) 18.12 15.96 13.5 18.10 Net debt / Comparable EBITDA, (R12M) 1.3 1.8 -27.8 1.7 Equity to asset ratio, % 38.9 35.3 10.2
Slide 122: Key figures by segment
122 Key figures by segment EUR million 4-6/ 4-6/ Change % Change % 1-6/ 1-6/ Change % Change % 1-12/ At comparable At comparable 2023 2022 currencies 2023 2022 currencies 2022 Service Orders received, MEUR 374.5 366.7 2.1 4.7 753.3 713.5 5.6 6.4 1,442.5 Agreement base value, MEUR 313.9 310.2 1.2 4.8
Slide 123: Statement of income
123 Statement of income EUR million 4-6/ 4-6/ Change % 1-6/ 1-6/ Change % 1-12/ 2023 2022 2023 2022 2022 Sales 913.0 787.1 16.0 1,812.3 1,459.2 24.2 3,364.8 Other operating income 2.9 2.1 5.8 3.2 8.1 Materials, supplies and subcontracting -385.4 -331.2 -764.3 -615.1 -1,510.2 Personnel cost -292.3 -2
Slide 124: Balance sheet
124 Balance sheet EUR million 30 Jun 30 Jun EUR million 30 Jun 30 Jun 2023 2022 2023 2022 Non-current assets 2,006.4 2,031.2 Total Equity 1,434.8 1,271.2 Goodwill 1,038.7 1,026.9 Non-current liabilities 1,278.2 1,207.6 Intangible assets 475.7 491.3 Interest-bearing liabilities 907.9 763.5 Property,
Slide 125: Cash flow statement
125 Cash flow statement EUR million 1-6/ 1-6/ 1-12/ 2023 2022 2022 Operating income before change in net working capital 237.7 86.6 344.5 Change in net working capital 52.8 -19.1 -162.3 Cash flow from operations before financing items and taxes 290.5 67.5 182.2 Financing items and taxes -37.4 -73.2
Slide 126: Thank you
Thank you Contact information Kiira Fröberg Vice President, Investor Relations Email: kiira.froberg@konecranes.com, tel: +358 20 427 2050 Tomi Kuuppo Manager, Investor Relations Email: tomi.kuuppo@konecranes.com, tel: +358 20 427 2961