Konecranes Oyj · OMXHEX:KCR
Konecranes Oyj — Investor Presentation (July 2024)
127 slides from Konecranes Oyj's investor presentation, July 2024
Slide 1: Konecranes Investor Presentation
Konecranes Investor Presentation July2024
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 3 PUBLIC
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 and better world Nasdaq Helsinki Headquartered in Active in around Approximately KCR Hyvinkää 50 16,600 since 1996 Finland countries employees, Q2/24 Orders received Net sales Comparable EBITA Order book 4,161.4 3,966.3 11.4% 3,040.8 MEU
Slide 6: Two main customer segments, extensive service coverage and a truly global presence
Two main customer segments, extensive service coverage and a truly global presence Sales by segment, 2023 Sales by offering type, 2023 Sales by region, 2023 33% 35% 41% 14% 47% Port Solutions Service Total service APAC EMEA 1371 MEUR 1490 MEUR 1724 MEUR(1) 572 MEUR 1873 MEUR 32% = 59% 38% Industrial
Slide 7: An industry and technology leader in material handling solutions
An industry and technology leader in material handling solutions 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 and makes of components and light dut
Slide 8: We have a solid platform with leading market positions to build on
We have a solid platform with leading market positions to build on Segment Market & position Offering Net sales • Inspections & preventive maintenance 1,490.4 ~15 BEUR • Predictive maintenance & remote monitoring 35% addressable MEUR, 2023 • Corrective maintenance & retrofits Service core market #1
Slide 9: Our broad customer base provides both stability and growth opportunities
Our broad customer base provides both stability and growth opportunities Orders by customer segments, 2023 9% 4% 5% Construction Power Transportation and Engineering Equipment 7% Container handling General manufacturing Metals production 9% Metals Distributors Production 4% Paper and Forest Paper an
Slide 10: More than 100 years of growth both organically and through strategic acquisitions
More than 100 years of growth both organically and through strategic acquisitions 1930s 1950s 1970s 1990s 2010s 2017 Developing electric Production of harbor Bulk material handling Independent Expansion to Acquisition of hoists cranes starts starts company emerging markets the MHPS business Whiting
Slide 11: Around 16,600 employees and production facilities in the Americas, EMEA and APAC
Around 16,600 employees and production facilities located in the Americas, EMEA and APAC Personnel by region (end of Q2 2024) EMEA 9,848 59% Hämeenlinna Hyvinkää AME 3,410 21% Markaryd Wetter Uslar APAC 3,363 20% Liebengrûn Düsseldorf Slany Zaporizhzhia Total 16,621 100% Würzburg Watertown Agrate Sp
Slide 12: Megatrends that shape Konecranes' markets
Konecranes has identified the following megatrends that shape its markets and provide business opportunities Sustainability Digitalization and automation Geopolitics and macroeconomics Sustainability has become the norm Geopolitical issues change the dynamics in business, the focus widening to manag
Slide 13: Purpose-built componentry, technology innovation and digitalization
We harness the advantages of our purpose-built 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 in-
Slide 14: Konecranes' sustainability commitments
Konecranes’ sustainabilitycommitments We deliver safe and secure material We enable a decarbonized and We create fair, inclusive, diverse and handling solutions circular world engaging working environment • Providing solutions for safe, uninterrupted and • Supporting our customers in reaching their
Slide 15: Ambitious climate targets and progress
We have ambitious climate targets and have made great progress towards them SCIENCE-BASED TARGETS: PROGRESS: Million tons of CO2e Own operations: • 50% absolute GHG emission reduction(1) by 2030 • Progress: Target achieved in 2022 (53% reduction in 2019- 2023) • New, more ambitious target set: Carbo
Slide 16: Sustainability work recognized with leadership ratings
Our sustainability work has been recognized with leadership ratings Sustainability ratings Selected highlights in 2023: CDP • We set a new target: Carbon neutral own operations by 2030, MSCI Climate after achieving our science-based target to halve our Scope 1 ESG Rating Change A- and 2 emissions du
Slide 17: Carbon neutral own operations by 2030
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 manufacturing carbon-neutral manufacturing fleet operations is manufacturing network renewable site 17 PUBLIC
Slide 18: This is Konecranes
This is Konecranes Our Purpose Shaping next generation material handling a for smarter, safer, and better world Our Ambition The world leader in material handling solutions, creating value for everyone Our strategic enablers Deepening Scaling Advancing Enhancing Accelerating customer technology resp
Slide 19: 2. Updated strategy & financial targets
2. Updated strategy & financial targets
Slide 20: Material handling market offers possibility to capture growth
Material handling market offers possibility to capture growth Market size estimate (BEUR) Estimated growth Includes our current Cranes and hoists1 35-40 core market Traditional Some Konecranes equipment Industrial trucks and lifts ~45 presence Conveyors 8-10 Our focus Robots 7-10 is on our core busi
Slide 21: A clear strategy to execute in all Business Segments
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 • Focus on core offering segmented offering driving model with b
Slide 22: Our focus is on profitability before embarking on growth
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 PS
Slide 23: Our Ambition and financial targets
Our Ambition is to become 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 dividen
Slide 24: Financial targets
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 compa
Slide 25: Stable to increasing dividend to shareholders
We pay a stable to increasing dividend to our shareholders EUR 4,00 EPS, basic DPS Dividend/Earnings, % 3,48 3,50 116,5 % Dividend policy Stable to 3,00 93,0 % increasing 2,50 67,2 % 70,6 % 1,86 dividend 2,00 57,1 % 1,77 1,54 38,8 % 1,50 1,35 per share, 1,29 1,25 1,25 1,20 1,20 1,03 1,00 0,88 0,50 o
Slide 26: Strategic Enablers driving our business forward
Strategic Enablers driving our business forward 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 26 PUBLIC
Slide 27: Embedding a winning attitude and growth mindset
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 27 PUBLIC
Slide 28: Strong platform and a clear plan to execute
Shaping next generation material handling 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 • Comparable
Slide 29: Our capital allocation priorities
Our capital allocation 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 € Debt
Slide 30: 3. Key financials development
3. Key financials development
Slide 31: Order intake
Order intake MEUR(1) 5000 4228 4161 4000 3656 3432 3447 2994 3000 2382 +22.7% -1.6% 1877 2000 +2.9% +15.1 Y/Y Y/Y Y/Y -12.7% Y/Y Y/Y 1000 -21.2% Y/Y 0 2019 2020 2021 2022 2023 Q2/24 1-6/2023 1-6/2024 R12M Note (1): Agreement base included in orders received from Q1 2023 onwards and historical figure
Slide 32: Net sales
Net sales MEUR 5000 3966 4099 4000 3327 3365 3179 3186 3000 +17.9% 1812 1945 2000 +5.4% +5.6% Y/Y -4.4% +0.2% Y/Y Y/Y Y/Y Y/Y +7.3% 1000 Y/Y 0 2019 2020 2021 2022 2023 Q2/24 R12M 1-6/2023 1-6/2024 32 PUBLIC
Slide 33: Comparable EBITA margin
ComparableEBITA margin MEUR Comparable EBITA Comparable EBITA margin, % 500 451 400 312 318 12.3% 12.8% 275 11.4% 10.7% 300 261 9.8% 9.5% 249 8.3% 8.2% 194 200 100 0 2019 2020 2021 2022 2023 Q2/24 R12M 1-6/2023 1-6/2024 33 PUBLIC
Slide 34: Order book
Order book MEUR Service Industrial Equipment Port Solutions 5000 +4.8% -12.4% +42.5% 4000 Y/Y Y/Y Y/Y +18.7% 2902 3041 2987 +6.3% 3000 -6.0% Y/Y Y/Y Y/Y 2037 1824 1716 1705 1604 2000 1000 892 912 444 471 0 2019 2020 2021 2022 2023 Q2/24 34 PUBLIC
Slide 35: 4. Konecranes as an investment
4. Konecranes as an investment
Slide 36: Konecranes as an investment
DEEPENING CUSTOMER FOCUS | ACCELERATING EFFICIENCY | SCALING TECHNOLOGY INNOVATION | ADVANCING RESPONSIBLE BUSINESS | ENHANCING OUR WINNING CULTURE Konecranes as an investment Strong market position in all Attractive opportunities for Leader in technology Business Segments growth Profitability targe
Slide 37: Innovative solutions and patent portfolio make us a technology leader
Leader in technology | Strong market position in all Business Segments | Attractive opportunities for growth | Target for 12-15% Group comparable EBITA margin | Solid financial position and dividend | Long-term commitment to sustainability With many innovative solutions and a solid patent portfolio,
Slide 38: Strong market position in all three segments
Leader in technology | Strong market position in all Business Segments | Attractive opportunities for growth | Target for 12-15% Group comparable EBITA margin | Solid financial position and dividend | Long-term commitment to sustainability We have a strong market position in all of our three segment
Slide 39: Global leader serving a broad range of customers across industries
Leader in technology | Strong market position in all Business Segments | Attractive opportunities for growth | Target for 12-15% Group comparable EBITA margin | Solid financial position and dividend | Long-term commitment to sustainability Konecranes is a global leader in material handling solutions
Slide 40: Comparable EBITA margin of 12-15% no later than 2027
Leader in technology | Strong market position in all Business Segments | Attractive opportunities for growth | Target for 12-15% Group comparable EBITA margin | Solid financial position and dividend | Long-term commitment to sustainability Comparable EBITA margin of 12-15% as soon as possible, but n
Slide 41: Healthy balance sheet and stable to increasing dividend
Leader in technology | Strong market position in all Business Segments | Attractive opportunities for growth | Target for 12-15% Group comparable EBITA margin | Solid financial position and dividend | Long-term commitment to sustainability A healthy balance sheet enabling long-term development & gro
Slide 42: Working for a decarbonized and circular world
Leader in technology | Strong market position in all Business Segments | Attractive opportunities for growth | Target for 12-15% Group comparable EBITA margin | Solid financial position and dividend | Long-term commitment to sustainability Konecranes works for a decarbonized and circular world Konec
Slide 43: Konecranes as an investment
Leader in technology | Strong market position in all Business Segments | Attractive opportunities for growth | Target for 12-15% Group comparable EBITA margin | Solid financial position and dividend | Long-term commitment to sustainability Konecranes as an investment 1. LEADER IN TECHNOLOGY 2. STRON
Slide 44: 5. Segment overviews
5. Segment overviews
Slide 45: Service
5. Segment overviews Service
Slide 46: Service in brief
Service | Industrial Equipment | Port Solutions Service in brief Key financials, MEUR Margin, % 8,018 1800 1490 employees (end of Q2 2024) 1343 1205 1200 35% 1,490.4 18,5% 18,6% 19,9% of Group sales net sales, MEUR (2023) 600 249 296 222 (2023) 0 19.9% 2021 2022 2023 comp. EBITA margin (2023) Net sa
Slide 47: Service actions starting to deliver growth
Service | Industrial Equipment | Port Solutions Working as one customer-centric team Service actions starting to deliver growth SERVICE Status Update • Service Programs renewal / Agreement base expansion • Revised programs / tools launched. Implementation continues. • Enhanced customer experience/jo
Slide 48: Market leader with unique global service branch network
Service | Industrial Equipment | Port Solutions Market leader with our unique global service branch network and unmatched service offering 10% Service: Service: Service: EMEA AME APAC Service ~15B€ market ~15% ~15% <5% market share market share market share Industrial Service market Service market s
Slide 49: Service business model – managing assets throughout the lifecycle
Service | Industrial Equipment | Port Solutions Service business model – managing assets throughout the lifecycle Inspections, Preventive Maintenance, Predictive Maintenance ~20% Agreement Sales, Inside Sales of sales New business development and renewals Lead generation Corrective Maintenance ~30%
Slide 50: Agreement base breakdown by hoist brand and coverage ratios
Service | Industrial Equipment | Port Solutions Agreement base breakdown by hoist brand and coverage ratios by asset brand Agreement base / breakdown by hoist brand • Approximately 50% of the hoisting machinery in our Konecranes agreement base was manufactured by the Konecranes Group; the other 50%
Slide 51: Achieving organic Service growth
Service | Industrial Equipment | Port Solutions Achieving organic Service growth Improved Agreement Quality AGREEMENT BASE (M€) 300 1. Expand agreement base +5% • Renewed/targeted Service Programs • Comprehensive agreements for critical/production assets with larger 200 accounts • Enhanced customer
Slide 52: Renewed Service Programs tailored to customer segments
Service | Industrial Equipment | Port Solutions Renewed Service Programs – each tailored to a different customer segment to enhance customer experience and retention CONDITION CARE COMMITMENT COMPLETE 52 PUBLIC
Slide 53: Digital enablers in Service
Service | Industrial Equipment | Port Solutions Digital enablers in Service – Helping us enhance the customer experience and to deliver services more efficiently Unified customer portal Customer engagement / sales enablement/ offer configuration • Engaging content • Consolidated customer focused on
Slide 54: Acquisition opportunities across various sectors
Service | Industrial Equipment | Port Solutions Acquisition opportunities across various sectors BOLT-ON ACQUISITIONS TECHNOLOGIES / CAPABILITIES • Targeting installed base, service • Industrial automation, systems integration, opportunities material flow simulation • Adding certain customer segment
Slide 55: Technicians are at the heart of our success
Service | Industrial Equipment | Port Solutions Technicians are at the heart of our success and key to our growth IMPROVE PRODUCTIVITY INCREASE RETENTION ACTIVELY RECRUIT Field operative time and tasks Continuously improving the Always searching for our future talent focused on our customers and the
Slide 56: Industrial Equipment
5. Segment overviews Industrial Equipment
Slide 57: Industrial Equipment in brief
Service | Industrial Equipment | Port Solutions Industrial Equipment in brief Key financials, MEUR Margin, % 5,259 1800 employees (end of Q2 2024) 1355 1206 1200 1089 6,5% 32% 1,355.3 3,5% of Group sales 600 2,7% net sales, MEUR (2023) (2023) 38 33 87 6.5% 0 2021 2022 2023 comp. EBITA margin (2023)
Slide 58: Equipment actions driving improved profitability
Service | Industrial Equipment | Port Solutions Working as one customer-centric team Equipment actions driving improved profitability EQUIPMENT Status Update • Go-to market / operating model simplification • Largely completed. Demag moved to Alpha • Platform harmonization/rationalization • On-going.
Slide 59: Global market leader in industrial cranes
Service | Industrial Equipment | Port Solutions 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 market market share share share Industrial Equipment market Equipment market share
Slide 60: Industrial Equipment offering – leading provider of industrial cranes
Service | Industrial Equipment | Port Solutions Industrial Equipment offering – leading provider of industrial 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) (Confi
Slide 61: Dual channels with shared equipment platforms
Service | Industrial Equipment | Port Solutions Dual channels with shared equipment platforms ensure market coverage, drive economies of scale and enhance profitability End users End users • Industrial Equipment consists of three businesses: Components, Standard cranes, and Process cranes Transition
Slide 62: Global presence with strong portfolio of crane brands
Service | Industrial Equipment | Port Solutions Global presence with strong portfolio of leading industrial crane brands AMERICAS EMEA APAC End user channel End user channel End user channel Distribution channel Distribution channel Distribution channel 62 PUBLIC
Slide 63: Product harmonization and digitalization drive profitability
Service | Industrial Equipment | Port Solutions Product harmonization and digitalization drive profitability Core of Lifting “purpose built” components enable competitiveness and economies of scale Target 2027 Product offering Platforms 2018 Platforms 2024* Benefits of scalability Global platforms*
Slide 64: Next Generation Light Lifting Equipment
Service | Industrial Equipment | Port Solutions 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 • Expanded range, options and app
Slide 65: Process Cranes
Service | Industrial Equipment | Port Solutions Process Cranes Improving process cranes profitability through productization, commercial and project management excellence Assembly Duty Process Duty Tailored General Industry-specific Tailored A Demanding applications in general industry, power genera
Slide 66: We continue to evaluate our manufacturing footprint
Service | Industrial Equipment | Port Solutions We continue to evaluate our manufacturing footprint toensureagilityandcompetitivenessinchangingenvironmentsandconditions • Crane manufacturing capacity supplemented by subcontracting network • Component manufacturing centralized in global and regional
Slide 67: Port Solutions
5. Segment overviews Port Solutions
Slide 68: Port Solutions in brief
Service | Industrial Equipment | Port Solutions Port Solutions in brief Key financials, MEUR Margin, % 3,244 1800 employees (end of Q2 2024) 1371 1200 1073 1015 33% 1,370.8 7,4% 7,5% of Group sales 600 6,3% net sales, MEUR (2023) (2023) 80 64 103 7.5% 0 2021 2022 2023 comp. EBITA margin (2023) Net s
Slide 69: Port Solutions offering for container handling
Service | Industrial Equipment | Port Solutions Port Solutions offering – widest and deepest offering for container handling… Port Services Lift Trucks Container Handling Equipment Mobile Harbour Cranes (MHC) Service & maintenance, Ship-To- inspections, spare parts, Shore modernizations, retrofits,
Slide 70: Equipment, automation solutions, software & services
Service | Industrial Equipment | Port Solutions …covering equipment, automation solutions, software & services PS offering video ► 70 PUBLIC
Slide 71: The complete solution for the Path to Port Automation
Service | Industrial Equipment | Port Solutions The complete solution for the Path to Port Automation lifting terminals to higher productivity and efficiency Konecranes Terminal Operating System (TOS) Software In-house Equipment Control System (ECS) software (TOS & ECS) Remote operation at any stage
Slide 72: Fully-electric offering and Path to Ecolifting
Service | Industrial Equipment | Port Solutions A comprehensive fully-electric offering and Path to Ecolifting & 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 equipmen
Slide 73: Megatrends and demand drivers providing growth opportunities
Service | Industrial Equipment | Port Solutions Megatrends and other demand drivers providing opportunities for growth As customers continue to seek increased productivity, enhanced safety and improved predictability Digitalization eCommerce & Sustainability Labour shortage Geopolitics & Automation
Slide 74: Equipment market position and development
Service | Industrial Equipment | Port Solutions 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 covera
Slide 75: Port Services market position and development
Service | Industrial Equipment | Port Solutions 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 labour,
Slide 76: We aim to become the World #1 in our core offering
Service | Industrial Equipment | Port Solutions 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 EB
Slide 77: Market provides plenty of opportunities for growth
Service | Industrial Equipment | Port Solutions Market provides plenty of opportunities for growth Mobile Service AGV ASC (ARMG) Lift trucks 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 #1-2 #2 #1-2 #1-2 #2-3 #
Slide 78: We focus on products with the best growth potential
Service | Industrial Equipment | Port Solutions We focus on products with the best growth potential With the rest of the product portfolio, our focus is on market share and profitability ASC (ARMG) Lift trucks Mobile (A)RTG Straddle Service AGV harbor cranes carriers cranes Market trend Our future A
Slide 79: Growing Port Services faster than equipment over the cycle
Service | Industrial Equipment | Port Solutions We aim to grow Port Services faster than equipment over the cycle KONECRANES PORT SERVICES FACTS Increasing own Boosting Geographic and 3rd party eCommerce & footprint expansion 22% fleet digital channels Share of sales 23 countries with own Data enabl
Slide 80: We are leading port automation
Service | Industrial Equipment | Port Solutions 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 80 PUBL
Slide 81: Capturing automation opportunities in all terminals
Service | Industrial Equipment | Port Solutions We capture automation opportunities in all terminals with our widest and deepest offering LARGE MEDIUM-SIZED SMALL-SIZED EXISTING SITES AUTOMATED CONTAINER CONTAINER WITH EXPANSIONS CONTAINER TERMINALS TERMINALS AND TERMINALS REPLACEMENTS With our ARTG
Slide 82: 6. Appendix
@ 2023 Konecranes. All rights reserved. 'Konecranes', 'Moves what matters' and 82 are either registered trademarks or trademarks of Konecranes Global Corporation. 6. Appendix PUBLIC
Slide 83: Konecranes at a glance
Konecranes at a glance Key figures, 2023 Konecranes Service Industrial Port Eliminations / Group Equipment Solutions Group Orders received 4,161.4 1,490.7 1,442.9 1,468.5 -240.7 MEUR MEUR MEUR MEUR MEUR Order book 3,040.8 443.5 892.3 1,705.0 MEUR MEUR MEUR MEUR Net sales 3,966.3 1,490.4 1,355.3 1,37
Slide 84: Konecranes key financials development
Konecranes keyfinancialsdevelopment Orders received, MEUR(1) Net sales, MEUR Comp. EBITA, MEUR & comp. EBITA-% 17,9% 22,7% 5,4% 5,6% (20,5 %) 11,4% 5000 15,1% 5000 0,2% 500 -1,6% -4,4% 2,9% (4,1%) (1,8%) 451 (0,3 %) (-3,0%) (0,7%) 4500 4228 4500 450 -12,7% 4161 9,8% 3966 9,5% 4000 4000 400 3432 3447
Slide 85: Eco-efficient equipment offering combined with services
Konecranes has a strong eco-efficient equipment offering combined with services to extend product lifecycles Eco portfolio sales by segment(1)(2) Eco portfolio share of Group sales, % 5000 100% 18 % 18 % 90% Service 4000 3 966 80% 2023 1-6/2024 3 365 3 179 3 186 70% 3000 54% 56% 54% 60% 51% 52% Indu
Slide 86: Konecranes Board of Directors
Konecranes Board of Directors Pasi Laine Pauli Anttila Ulf Liljedahl Gun Nilsson Chair of the Board Member of the Board Member of the Board Member of the Board Päivi Rekonen Thomas Schulz Birgit Seeger Sami Piittisjärvi Member of the Board Member of the Board Member of the Board Member of the Board
Slide 87: Board independence and committees
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 8 75% • shareholders Pauli Anttila is deemed not to be independent of a significant Board members Independent shareholder of the Company
Slide 88: Konecranes Leadership Team
Konecranes Leadership Team Anders Svensson Teo Ottola President and CEO CFO, Fabio Fiorino Juha Pankakoski 9 Deputy CEO Executive Vice President, Executive Vice President, Konecranes Industrial Service and Equipment Port Solutions(1) Leadership Team members(1)(2)(3) (4) 44% women Minna Aila Claes Er
Slide 89: Strong balance sheet with financial flexibility
We have a strong balance sheet with financial flexibility Equity & net debt, MEUR and gearing, % 2000 Equity Net debt Gearing, % Target, % Gearing target: <80% 1750 1634 1595 1500 1433 1361 1247 1251 Mid-term target 1250 for debt level 52,6 % <80% 48,0 % 1000 46,1 % 39,8 % 750 688 655 gearing-% 577
Slide 90: Group interest-bearing liabilities and net debt
Group interest-bearing liabilities and net debt Structure and maturity profile of interest-bearing liabilities (Dec 31, 2023) Interest-bearing net debt (Jun 30, 2024) 2% MEUR 1% EUR million 30 Jun 30 Jun 31 Dec 20,0 MEUR 7,7 MEUR 1200 2024 2023 2023 16% 150,3 MEUR Non current interest bearing 1000 4
Slide 91: Capital expenditure, depreciation and R&D expenditure
Capital expenditure, depreciation and R&D expenditure Capital expenditure and depreciation, MEUR Research and development, MEUR and percentage of sales 120 60 5% 51,3 100 50 48,5 47,7 47,7 4% 99 96 93 41,1 80 87 40 85 3% 60 30 54 2% 50 1,5% 1,5% 40 20 1,4% 43 1,2% 1,3% 40 37 1% 20 10 0 0 0% 2019 202
Slide 92: Net working capital development
Our net working capital development is driven by timing of projects and delivery capability Net working capital, MEUR and percentage of sales (1) 800 NWC, restated % of R12M sales, restated Target, % 14,6 % 700 NWC target: <12% 600 11,0 % 11,2 % 10,0 % 490 Mid-term target 500 458 for net working cap
Slide 93: Free cash flow and return on capital employed
Free cash flow and return on capital employed Free cash flow, MEUR Capital employed, MEUR and comp. return on capital employed, % 600 4000 Capital employed Comp. ROCE-% 20,2 % 525 511 3500 17,7 % 450 3000 2539 2550 2592 366 2422 13,4 % 13,4 % 375 352 2500 12,7 % 2281 2226 11,1 % 300 2000 225 1500 14
Slide 94: Operating expenses
Operating expenses EUR million 1-12/ 1-12/ 1-12/ Operating expenses, MEUR and operating expenses, % of sales 4000 2021 2022 2023 3458 Change in work in progress -35.0 -170.9 13.4 3500 3025 11,4% Production for own use -0.7 -1.1 -0.7 2857 3,8% 3000 12,6 % Material and supplies 1,030.7 1,267.5 1,303.7
Slide 95: Dividend per share and pay-out ratio development
Dividend per share and pay-out ratio development Dividend per share, EUR and dividend/earnings ratio, % 2,00 250% 1.35 EUR Dividend per share Dividend/earnings Average Dividend/earnings Dividend for 2023 200% 1,50 1,35 81% 1,25 1,25 average dividend pay-out ratio 1,20 1,20 1,20 150% for 2005–2023 1,
Slide 96: Major shareholders and distribution of ownership
Major shareholders and distribution of ownership Ownership structure (as at Jun 30, 2024) Major shareholders (as at Jun 30, 2024) 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 2,242,201 2.83 of
Slide 97: 7. Latest quarterly result presentation
7. Latest quarterly result presentation
Slide 98: Q2 2024 Report
July26, 2024 Q2 2024 Report Anders Svensson, Presidentand CEO Teo Ottola, CFO
Slide 99: 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 100: 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 101: Q2 2024 – Record-high comparable EBITA margin in all Business Segments
Q2 2024 –Record-high comparable EBITA margin in allBusiness 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/Y
Slide 102: 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 103: 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 104: 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 105: 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 105 PUBLIC
Slide 106: 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 107: 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 108: 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 109: 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. 109
Slide 110: 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 111: 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 112: 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 113: 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 114: 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 115: 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 116: 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
Slide 117: i SS — a |
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Slide 118: Appendix
@ 2023 Konecranes. All rights reserved. 'Konecranes', 'Moves what matters' and 118 are either registered trademarks or trademarks of Konecranes Global Corporation. Appendix PUBLIC
Slide 119: 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 120: 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 121: 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 122: 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 123: 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 124: 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 125: 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 126: 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 127: 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