Konecranes Oyj · OMXHEX:KCR
Konecranes Oyj — Konecranes Plc Ord — Q1 2024 Earnings Presentation
30 slides from Konecranes Oyj's earnings presentation, Apr 25, 2024
Slide 1: Q1 2024 Report
Q1 2024 Report Anders Svensson, Presidentand CEO April25, 2024 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: Q1 2024 – Record-high Q1 Profitability
Q1 2024 – Record-high Q1 Profitability Demand environment remained healthy in Q1 Order intake Net sales (MEUR) (MEUR) • Orders -29.0% Y/Y (comp. FX) against a strong comparison - 30% +2% period 1,290 909 899 913 Sales €913 million, +2.5% Y/Y (comp. FX) Record-high comparable EBITA-% of 11.1% • Y/Y p
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 75 Brazil India China 70 85 85 65 80 80 78.4 60 79.1 75 75 77.3 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 15 129.5 120 10 100 5 +9% 80 Y/Y 0 2/2024 60 -5 40 -10 20 -15 0 -20 2/14 2/15 2/16 2/17 2/18 2/19 2/20 2/21 2/22 2/23 2/24 2/14 2/15 2/16 2/17 2/18 2/19 2/20 2/21 2/22 2/23 2/24
Slide 7: Group order intake and net sales
Group order intake and net sales Order intake, MEUR(1) Order intake 1500 1290 1098 - 29.5% - 29.0% Y/Y reported Y/Y comp. FX 1000 909 • EUR 909.1 million • Decrease in Port Solutions and Industrial 500 Equipment, increase in Service • Decrease in all regions 0 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Q3/
Slide 8: Group order book
Group order book Order book, MEUR Service Industrial Equipment Port Solutions Order book 4500 - 7.2% - 6.8% Y/Y reported Y/Y comp. FX 3750 • EUR 3,046.4 million 3281 3046 • Increase in Service, decrease in Industrial Equipment and Port Solutions 3000 2485 2250 1500 750 0 Q1/22 Q2/22 Q3/22 Q4/22 Q1/2
Slide 9: Group comparable EBITA
Group comparable EBITA Comparable EBITA, MEUR & margin- % Comp. EBITA C. EBITA-% R12M c. EBITA-% Comparable EBITA 150 11.1% +0.5 pp margin Y/Y 11.5% 125 10.6% 11.1% • EUR 101.8 million 10.3% • Comparable EBITA-% increase in Service 102 100 9.5% 95 and Port Solutions, decrease in Industrial Equipment
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) 19.9 20.1 18.5 18.6 17.2 16.6 11.4 11.5 9.8 9.5 8.3 8.2 7.8 7.4 7.5 7.6 7.0 6.8 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 h
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 remain approximately on the same level or 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: Q1 2024 comparable EBITA bridge
Q1 2024 comparable EBITA bridge MEUR(1) 250 200 150 28 -5 -16 -2 102 95 100 10.6% 11.1% 50 Comparable EBITA Comparable EBITA margin margin 0 Comparable EBITA Volume, Variable Fixed FX translation Comparable EBITA Q1 2023 pricing & mix costs costs impact Q1 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 APAC, +2.6% decrease in EMEA Y/Y reported 379 354 388 367 Agreement base: 400 347 301 +3.7% • EUR 326.0 million , +4.8% Y/Y Y/Y comp. FX • +5.3%
Slide 16: Industrial Equipment
Industrial Equipment Order intake and net sales, MEUR(1) Orders received Net sales Order intake • External orders -29.7% Y/Y comp. FX - 29.0% • Decrease in standard cranes, process 600 441 cranes and components(2) Y/Y reported 400 365 • Decrease in EMEA, Americas and APAC 243 308 313 283 - 28.3% Y/Y
Slide 17: Port Solutions
Port Solutions Order intake and net sales, MEUR(1) Orders received Net sales Order intake • Decrease in EMEA, Americas and APAC 600 513 - 51.6% • Good order intake in Mobile Harbor Cranes 430 Y/Y reported 400 273 248 300 - 51.4% Y/Y comp. FX 176 200 Net sales Order book: 0 • EUR 1,648.2 million, -10
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 800 600 NWC % of R12M sales R12M FCF FCF 700 500 444 600 400 12.2% 500 300 437 9.4% 10.2% 400 374 200 323 138 123 300 100 116 49 3 200 0 100 -100 0 -200 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Q
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 18.9% 1750 42.3% 1538 3500 16.1% 1500 1351 1387 3000 13.4% 1250 40.3% 2499 2500 2346 2251 100
Slide 20: Q&A
Q&A
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% 42 % 14 % 47 % Port Solutions Service Total service APAC EMEA 1398 MEUR 1504 MEUR 1743 MEUR 558 MEUR 1853 MEUR % % % of R12M of R12M of R12M sales sales sales 30% 58% 39 % 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 1600 2000 1834 1648 750 1200 1500 986 1234 932 855 466 462 500 800 1000 396 326 301 311 250 400 500 0 0 0 Q1/22 Q
Slide 24: Group key figures 1/2
Group key figures 1/2 EUR million 1- 3/ 1- 3/ Change % Change % 1- 12/ 2024 2023 Comp. FX 2023 Orders received, MEUR 909.1 1 289.6 -29.5 -29.0 4,161.4 Order book at end of period, MEUR 3,046.4 3,281.4 -7.2 -6.8 3,040.8 Sales total, MEUR 913.1 899.3 1.5 2.5 3,966.3 Comparable EBITDA, MEUR 124.4 117.9
Slide 25: Group key figures 2/2
Group key figures 2/2 EUR million 1- 3/ 1- 3/ Change % 1- 12/ 2024 2023 2023 ROCE, %, (R12M) 17.6 14.0 25.7 16.4 Return on equity, %, (R12M) 19.3 15.5 24.5 18.2 Equity per share (EUR) 19.41 17.51 10.9 20.14 Net debt / Comparable EBITDA, (R12M) 0.6 1.3 -53.8 0.7 Equity to asset ratio, % 39.5 37.5 5.3
Slide 26: Key figures by segment
Key figures by segment EUR million 1- 3/ 1- 3/ Change % Change % 1- 12/ 2024 2023 Comp. FX 2023 Service Orders received, MEUR 388.5 378.8 2.6 3.7 1,490.7 Agreement base value, MEUR 326.0 311.1 4.8 5.3 318.3 Sales, MEUR 367.2 353.6 3.9 5.1 1,490.4 Comparable EBITA, MEUR 72.9 66.2 10.1 296.2 Comparabl
Slide 27: Statement of income
Statement of income EUR million 1- 3/ 1- 3/ Change % 1- 12/ 2024 2023 2023 Sales 913.1 899.3 1.5 3,966.3 Other operating income 4.6 2.9 9.5 Materials, supplies and subcontracting -359.8 -378.9 -1,820.3 Personnel cost -328.0 -291.3 -1,186.6 Depreciation and impairments -30.3 -29.5 -114.9 Other operat
Slide 28: Balance sheet
Balance sheet EUR million 31 Mar 31 Mar EUR million 31 Mar 31 Mar 2024 2023 2024 2023 Non- current assets 1,998.7 1,959.7 Total Equity 1,537.7 1,387.0 Goodwill 1,040.1 1,017.9 Non- current liabilities 1,111.3 1,274.3 Intangible assets 454.7 466.9 Interest-bearing liabilities 731.0 904.8 Property, pl
Slide 29: Cash flow statement
Cash flow statement EUR million 1- 3/ 1- 3/ 1- 12/ 2024 2023 2023 Operating income before change in net working capital 113.8 112.1 520.7 Change in net working capital -18.4 12.1 121.9 Cash flow from operations before financing items and taxes 95.4 124.3 642.6 Financing items and taxes -33.7 4.4 -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