Kalmar Corporation Class B · OMXHEX:KALMAR
Kalmar Corporation Class B — Investor Day (May 2024)
56 slides from Kalmar Corporation Class B's investor day presentation, May 29, 2024
Slide 1: Making every move count
Making every move count Kalmar Capital Markets Day 29 May 2024
Slide 2: Disclaimer
Disclaimer This presentation is for information purposes only. This presentation does not constitute or form part of, and should not be construed as, any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for any securities of Cargotec Corporation (“Cargo
Slide 3: Agenda
Kalmar Capital Markets Day 29 May 2024 Agenda: 9.30 - 12.00 EEST ● Kalmar as an investment Sami Niiranen, President & CEO (upon Demerger) ● Investing in Sustainable Innovations Tommi Pettersson, Head of Strategy, Sustainability & Technology & Alf-Gunnar Karlgren, Head of Counterbalanced ○ Q&A Break
Slide 4: Speaker gallery
Speaker gallery Sami Sakari Tommi Alf-Gunnar Thomas Carina Niiranen Ahdekivi Pettersson Karlgren Malmborg Geber-Teir President & CEO CFO Head of Strategy, Head of Head of Services Head of IR & (upon demerger) Sustainability and Counterbalanced Communications Technology 4
Slide 5: Kalmar as an Investment
01 Kalmar as an Investment Sami Niiranen President & proposed CEO Kalmar 5
Slide 6: Kalmar moves goods in critical supply chains around the world
Kalmar moves goods in critical supply chains around the world. Making every move count. 6
Slide 7: Safe and sustainable by design
Safe and sustainable by design 7
Slide 8: Making every move count: vision, drivers and strategic pillars
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 9: Kalmar business is well diversified across customer segments & geographies
Kalmar business is well diversified across customer segments & geographies with good profitability Services share Kalmar addressable markets Geographical Eco portfolio of sales 1 by customer segment 2 sales split 1 share of sales1,5 Ports and AMEA AMER Heavy Logistics Terminals 19% 44% 28% 37% Manuf
Slide 10: 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 11: Shaping the industry and making every move count
Shaping the industry and making every move count Strong track-record of sustainable innovations and transformation 1940s First step Combining portfolio Part of Independent of leading Cargotec Kalmar businesses 2005-2024 11
Slide 12: 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 13: Driving the transition to a sustainable value chain through connectivity
Driving the transition to a sustainable value chain through connectivity and advanced services 65,000 installed base 13,000+ Segments: connected equipment Ports & Terminals Distribution Manufacturing Heavy Logistics Connected equipment 13
Slide 14: Industry trends & Kalmar's way ahead
Industry trends & Kalmar’s way ahead 14
Slide 15: Kalmar is addressing a large and growing global market
Kalmar is addressing a large and growing global market Global heavy material handling market ▪ Upside from industry Total market size, segmentation and growth1, EUR bn, 2023-2028F decarbonisation and electrification increasing ~4% 16.5 p.a. equipment complexity ▪ Additional value pools from 13.4 new
Slide 16: Megatrends driving customer expectations
Megatrends and industry transformation are driving customer expectations Productivity Decarbonisation * and electrification Safety Changing logistics landscape Intelligent Labour operations shortage 16 *Customer examples
Slide 17: Kalmar is committed to sustainable and profitable growth
Kalmar is committed to sustainable and profitable growth Investing in Growing Driving Sustainable Services Excellence Innovations Foundations Customer proximity • Experienced & talented people • Attractive market • Strong financial profile 17
Slide 18: Sustainable innovations for customers' safety & productivity
Sustainable innovations for customers’ safety & productivity Driver assistance Connected to the cloud with features dashboard Rental reporting Equipment as a Service Kalmar Insight: full-suite digital platform Charging service & Battery life Safety Fully cycle electric Partnering machine optimizatio
Slide 19: Adapting to increasingly complex markets
Adapting to increasingly complex markets Future-proofing Kalmar: Strategic pillars: Continued investments in innovation Investing in Sustainable Innovations Enabling industry electrification Growing Services Portfolio management actions Driving Excellence Improving resilience TODAY ILLUSTRATIVE MARK
Slide 20: Kalmar's highly experienced and committed management team
Kalmar’s highly experienced and committed management team as of April 1, 2024 Sami Sakari Carina Francois Mathias Tommi Marika Niiranen Ahdekivi Geber-Teir Guetat Höglund Pettersson Väkiparta President & CEO CFO Head of IR & Head of Integrated Head of Human Head of Strategy, Head of (upon demerger)
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: Investing in Sustainable Innovations
02 Investing in Sustainable Innovations Tommi Pettersson Alf-Gunnar Karlgren Head of Strategy, Head of Counterbalanced Sustainability & Technology Division 22
Slide 23: Kalmar enables industry decarbonisation, safety and productivity
Kalmar enables industry decarbonisation, safety and productivity through sustainable innovations in partnership with our customers 23
Slide 24: Solving customer challenges
Solving customer challenges Customer challenges Kalmar’s role Full EV value-chain competence Peace of mind through value-add services Partner to navigate operational hurdles Safety & cybersecurity certified solutions1 Productivity maximisation through digital and automated solutions Kalmar is a long
Slide 25: Kalmar is committed to sustainable and profitable growth
Kalmar is committed to sustainable and profitable growth Investing in Sustainable Innovations Electrification & Digital, Data & Actions to capture Decarbonisation Automated solutions market share Underlying market growth as a solid foundation 25
Slide 26: The equipment market is shifting to electric solutions
The equipment market is shifting to electric solutions Global equipment market Equipment market size and growth1, EURbn, 2023-2028F ~5% p.a. 9.3 7.4 Electric equipment market is growing ~28%1 annually – above the total equipment market growth 26 1) Equipment categories: Terminal tractors, forklift t
Slide 27: Market is pushing for electrification
Market is pushing for electrification and our customers are increasingly active Electrification is driving the market3 Safety, Sustainability & Regulation accelerates decarbonisation 12% 63% of equipment of customers plan 41% orders were fully zero or low emission electric in 20231 capex by 20282 4
Slide 28: Kalmar's market-proven electric offering
Kalmar’s market-proven electric offering addresses an attractively structured market Wide experience of market-proven, Electrification supported by replacement in-production fully electric machines demand 65,000 installed base 8 – 15 years Average replacement cycle • Experience already from the 1980
Slide 29: Technological expertise as a driver for safety, productivity and sustainability
Technological expertise as a driver for enhanced safety, productivity and sustainability Value potential for Kalmar Kalmar Autonomous Data-driven Machine & Preferred partner for focusing on & user- services operation our customers expertise in: assistance optimisation solutions Profitable growth in
Slide 30: Continuous investments in sustainable innovations with clear priorities
Continuous investments in sustainable AutoTT in innovations with clear priorities collaboration with Forterra Next Gen Electric Terminal Tractor Wider range of zero- emission Electrified Electric AI-driven technologies portfolio in Empty predictive key product Container services categories Handler I
Slide 31: Multitude of innovations driving our business potential
Multitude of innovations driving our business potential 31
Slide 32: Opportunities to leverage portfolio for further growth
Opportunities to leverage portfolio for further growth in core markets & white spots *) Opportunities in Terminal Tractors Opportunities in Straddle Opportunities in Carriers Reachstackers Opportunities in Market Forklifts opportunities in Growth emerging potential in markets Global Services 32 Kalm
Slide 33: Sustainable innovations are the main growth lever
Sustainable innovations are the main growth lever Electrification & 01 Global leader in an attractive market for mission-critical heavy Decarbonisation material handling Underlying Digital, Data & market 02 Partnering long-term with our growth customers to deliver a stronger Automated solutions as a
Slide 34: Growing Services
03 Growing Services Thomas Malmborg Head of Services Kalmar 34
Slide 35: Significant Services growth upside from large installed base
Significant Services growth upside from large installed base and innovation-enabled offering 35
Slide 36: Kalmar Service solutions keep installed base of 65,000 equipment moving
Kalmar Service solutions are optimised to keep our installed base of 65,000 equipment moving Customer challenges Kalmar’s role Maintenance & Service Spare Parts & Logistics Upgrades & Refurbishments Digital & Remote services Rental & Used Equipment Consulting & Training Kalmar is a long-term, truste
Slide 37: Committed to sustainable and profitable growth
Committed to sustainable and profitable growth Growing Services Installed base Electrification for Value through potential services growth data-driven solutions Underlying market growth as a solid foundation 37
Slide 38: Large global Services market with growth drivers
Large global Services market with growth drivers from electrification & digital solutions Global service market Service market size and growth1, EURbn, 2023-2028F ~4% Resilient & growing global p.a. market with further growth 7.1 opportunities for Kalmar 6.0 Electrification and digital solutions inc
Slide 39: 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 industry 467 Spare part capture solutions Capture higher electrification rate from 25% to 29% share of for increased Strong focus on installed base services growth digital
Slide 40: Industry electrification is a clear growth driver for Services
Sustainable operations and industry electrification is a clear growth driver for Services Diesel-powered Eco Reachstacker: Electric Reachstacker: • Overall replaceable parts number is higher • High overlap in parts & functional similarity • Kalmar’s value-add to diesel engine • Increased value, inte
Slide 41: Digital solutions to drive growth
Digital solutions to drive growth by accelerating customer productivity and sustainability Enablers 13,000+ connected Global network of equipment 1,300+ technicians Value proposition Superior understanding Knowledge through data of machines when to service Customer advantage Productive, safe and sus
Slide 42: Solutions enabling customer operations
Solutions enabling customer operations Case: Small Central European Intermodal Terminal Case: Large Nordic Manufacturing industry site 5 Kalmar Reachstackers 10+ Kalmar heavy forklifts 10+ 3rd party light forklifts & reachstackers 5-year Kalmar Complete Care-contract for Kalmar On-Demand Maintenance
Slide 43: Growing Services supporting profitable growth and resilience
Growing Services supporting Kalmar’s profitable growth and resilience Installed base potential Underlying market Significant services growth Electrification for services growth growth as a solid 04 upside from large installed base and innovation-enabled offering foundation Value through data-driven
Slide 44: Driving Excellence
04 Driving Excellence Sakari Ahdekivi CFO Kalmar 44
Slide 45: Attractive & strong financial profile
Attractive & strong financial profile Q1/2024 LTM key financial results €1,636M €972M 24.9% 12.6% Orders received Order book1 Gross profit Comparable OP margin2 €2,003M 0.5x 22.5% 126% Sales Leverage3 ROCE Cash conversion4 The financials are Q1/2024 LTM and on carve-out basis unless otherwise mentio
Slide 46: Kalmar demonstrating historically above-market growth
Kalmar demonstrating historically above-market growth Historical sales development Carve-out impact on profitability (excl. Navis & heavy cranes) Sales, MEUR1 (Comparable OP margin, FY2023) +5.4%2 2,009 13.6% 1,868 1,506 25MEUR5 1,351 1,345 1,374 1,435 1,301 1,383 12.4% 1,186 1,181 Kalmar Business A
Slide 47: Flexibility and agility through an asset-light business model
Flexibility and agility through an asset-light business model Asset-light Efficient operations Robust cash conversion Kalmar Global market coverage Liquidity for organic Business Rigorous working capital with an optimized growth and capital Model management manufacturing footprint allocation Evidenc
Slide 48: Kalmar is well-positioned to drive growth in both segments
Kalmar is well-positioned to drive growth in both segments Equipment Services Orders received1: Q1/2024 Orders received1: LTM 1,084 MEUR 551 MEUR Order book2: 31-Mar Order book2: 2024 859 MEUR 105 MEUR Sales1: Q1/2024 Sales1: LTM 1,405 MEUR 558 MEUR Comparable OP3: Pro forma Comparable OP3: 2023 202
Slide 49: Profitability upside towards 2028 target
Profitability upside from sustainable innovations, service growth and driving excellence Illustration of key drivers towards 2028 profitability target 15%2 12.4%1 2023 Sustainable Growing Driving 2028 Innovations Services Excellence Comparable OP Margin (%) 1) Kalmar FY2023 Carve-out financials 49 2
Slide 50: Driving excellence to target best-in-class commercial performance
Driving excellence to target best-in-class commercial performance and cost efficiency 2021 2022 2023 2024 2025 2026 2027 2028 Exit Heavy Cranes Business* Portfolio Optimisation Exit End-to-End Automation Commercial excellence Commercial Excellence Product cost optimisation Supply chain actions Opera
Slide 51: Capital allocation to 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 readiness possibilities sheet Prioritising R&D s
Slide 52: 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 53: Further investments supported by Kalmar's financial profile
Further investments in growth & excellence supported by Kalmar’s financial profile Financial strength & Significant sales growth flexibility and profitability potential Profitable & 06 enabled by strong financial profile sustainable growth Asset-light & demonstrated cash-generative nature by 2028 pe
Slide 54: Closing Words
05 Closing Words Sami Niiranen President & proposed CEO Kalmar 54
Slide 55: Kalmar is committed to sustainable and profitable growth
Kalmar is committed to sustainable and profitable growth Investing in Growing Driving Sustainable Services Excellence Innovations Foundations Customer proximity • Experienced & talented people • Attractive market • Strong financial profile 55
Slide 56: Making every move count.
Making every move count.