Slide 1: Improved profitability despite supply chain challenges
27 April 2022 • New strategy focusing on sustainability and higher financial performance Improved profitability • Excellent progress in despite supply chain services and in Hiab continued challenges • Uncertainty on deliveries due to component Cargotec’s January–March 2022 interim report availabilit
Slide 2: Disclaimer
Disclaimer Although forward-looking statements contained in this presentation are based upon what management of the company believes are reasonable assumptions, there can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ mater
Slide 3: Contents
Contents ● Q1/22 highlights ● Market environment ● Group level development ● Refocusing for higher financial performance ● Business areas ● Financials and outlook 3
Slide 4: Highlights of Q1/22 – Improved profitability despite supply chain challenges
Highlights of Q1/22 – Improved profitability despite supply chain challenges Orders received increased by 2% ● Driven by core businesses Sales increased by 17% ● Clear improvement in all business areas ● Service sales increased by 12% ● Eco portfolio sales increased by 38 % to 24 % of total sales Co
Slide 5: Equipment utilisation remains at a high level in the main market areas
Equipment utilisation remains at a high level in the main market areas +2% +5% -6% +1% +3% -6% -6% -2% Kalmar Mobile Equipment: +1% Change in machine activity – Q1/22 vs. Q4/21 -1% Hiab loader cranes: Actual vs. estimated operating time, Q1/22 Cargotec’s January-March 2022 interim report | 27 April
Slide 6: Loader crane data shows that utilisation remains at a high level
Loader crane data shows that utilisation remains at a high level Easter 100=expected value 6 Expected value is derived from past 365 days operating time and number of active equipment
Slide 7: Market environment - Growth is estimated to continue - increased economic uncertainty
Market environment - Growth is estimated to continue - increased economic uncertainty Global container throughput1 – Construction output2 – Long term contracting – Key driver for Kalmar Key driver for Hiab Key driver for MacGregor United States Europe Merchant ships3 Offshore mobile units4 Historica
Slide 8: Orders received continued to improve in Hiab and in Kalmar's core business
Orders received continued to improve in Hiab and in Kalmar’s core business Orders received MEUR -5% (y/y) +13% (y/y) -xx% (y/y) +xx% -6% (y/y) *Kalmar core business = Kalmar excluding heavy port Cargotec’s January-March 2022 interim report | 27 April 2022 8 cranes + divested Navis business
Slide 9: Order book extends beyond 2022
Order book extends beyond 2022 Order book Order book by reporting MEUR segment, 31 March 2022 46% 18% 36% Cargotec’s January-March 2022 interim report | 27 April 2022 9
Slide 10: Sales and comparable operating profit improved driven by the core businesses
Sales and comparable operating profit improved driven by the core businesses Sales Comparable operating profit MEUR MEUR x *) Including Corporate admin and support Cargotec’s January-March 2022 interim report | 27 April 2022 10
Slide 11: Services business at record level
Services business at record level Service orders received +2% Service sales +12% ● Kalmar +10% ● Hiab +10% ● MacGregor +17% Service share 33% of total sales Cargotec’s January-March 2022 interim report | 27 April 2022 11
Slide 12: Refocusing for higher financial performance through sustainability and growth
Refocusing for higher financial performance through sustainability and growth in profitable core businesses Cargotec’s January-March 2022 interim report | 27 April 2022 12
Slide 13: Our strategic direction remains the same…
Our strategic direction remains the same… PURPOSE SMARTER CARGO FLOW FOR A BETTER EVERYDAY VISION Global Leader in Sustainable Cargo Flow BREAKTHROUGH Sustainability Profitable Growth OBJECTIVES CONCRETE TARGET Reduce 1 million tonnes of CO2 equivalent by 2024 WHERE TO WIN HOW WE MEASURE Grow in cor
Slide 14: …but we plan to further focus our business
…but we plan to further focus our business EVALUATE FOCUS KALMAR ACCELERATE HIAB STRATEGIC TOWARDS MOBILE GROWTH OPTIONS FOR SOLUTIONS MACGREGOR Cargotec’s January-March 2022 interim report | 27 April 2022 14
Slide 15: We will support our customers with lifecycle services as well as market leading equipment
We will support our customers with lifecycle services as well as market leading equipment and technology 15
Slide 16: Going forward – planned actions within next 12 months
Going forward – planned actions within next 12 months Strategic evaluation of MacGregor business On going Plan to exit heavy cranes business in Kalmar On going Review of operational model to support refocused group On going Capital allocation priorities: Continuing R&D Accelerating Maintaining stron
Slide 17: Concrete actions in the areas where we want to win
Concrete actions in the areas where we want to win Grow in core and Solve customer Invest in industry Expand lifecycle adjacent businesses & challenges in climate innovation and services markets change and transformation sustainability Eco sales grew by 38% to The world’s first orders for Moffett E5
Slide 18: Business areas
Business areas Cargotec’s January-March 2022 interim report | 27 April 2022 18
Slide 19: Kalmar Q1 – Core equipment and services improved
Kalmar Q1 – Core equipment and services improved Strong demand continued ● Increase in core equipment and services MEUR Q1/22 Q1/21 Change ● First orders on world’s first Orders received 499 529 -6% electric reachstackers Order book 1,449 1,051 38% Sales 372 324 15% Sales increased by 15% Service sa
Slide 20: Hiab Q1 – Strong start to the year
Hiab Q1 – Strong start to the year Strong demand continued ● Second highest quarter in Hiab’s history MEUR Q1/22 Q1/21 Change Orders received 482 425 13% ● Large one-time orders ● Record order for electric truck Order book 1,125 642 75% mounted forklifts received Sales 340 287 18% Service sales, % 2
Slide 21: MacGregor Q1 - Order book continued to increase
MacGregor Q1 - Order book continued to increase Orders received decreased ● Increase in merchant vessels MEUR Q1/22 Q1/21 Change ● Decrease in services and in Orders received 154 161 -5% offshore sector Order book 577 524 10% Sales 140 119 18% Sales increased Service sales, % 48% 48% 0bps ● Increase
Slide 22: Financials and outlook
Financials and outlook Cargotec’s January-March 2022 interim report | 27 April 2022 22
Slide 23: Key figures – Impairment provision related to business in Russia had a -10 MEUR impact
Key figures – Impairment provision related to business in Russia had a -10 MEUR impact on operating profit Q1/22 Q1/21 Change Orders received, MEUR 1,135 1,115 2% Order book, MEUR 3,151 2,217 42% Sales, MEUR 851 730 17% Comparable operating profit, MEUR 65 52 26% Comparable operating profit, % 7.7%
Slide 24: Cash flow affected by increased inventories
Cash flow affected by increased inventories Cash flow from operations before financing items and taxes MEUR Cargotec’s January-March 2022 interim report | 27 April 2022 24
Slide 25: Net debt affected by inventory build-up and dividend payment
Net debt affected by inventory build-up and dividend payment Net debt & gearing Maturity profile, 31 March 2022 MEUR Cargotec’s January-March 2022 interim report | 27 April 2022 25
Slide 26: Outlook for 2022
Outlook for 2022 Cargotec estimates 2022 comparable operating profit to improve compared to 2021 (EUR 232 million) Cargotec’s January-March 2022 interim report | 27 April 2022 26
Slide 27: Refocusing for higher financial performance through sustainability and growth
Refocusing for higher financial performance through sustainability and growth in profitable core businesses 27
Slide 28: Cargotec
Cy CARGOTEC