Konecranes Oyj · OMXHEX:KCR

Konecranes Oyj — Investor Day (August 2021)

39 slides from Konecranes Oyj's investor day presentation, Aug 30, 2021

  1. Slide 1: BA Service

    BA Service August 30th, 2021 Fabio Fiorino EVP BA Service

  2. 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

  3. Slide 3: Agenda

    Agenda • Service strategy and fundamentals • Agreement base • Financial performance and insights • Digitalization enabling growth and profitability • Takeaway / ambition level • Q&A 3 © 2021 Konecranes. All rights reserved. August 2021

  4. Slide 4: Service strategy and fundamentals

    Service strategy and fundamentals 4 © 2021 Konecranes. All rights reserved. August 2021

  5. Slide 5: Service Strategy

    Service Industry-leading maintenance services for all types and makes of industrial cranes and hoists. Strategy Our objective is to improve the safety, productivity and sustainability of our customers’ operations. Customer focus Delivering on our promises Build long-term relationships – the service

  6. Slide 6: Service business model – managing assets throughout the lifecycle

    Service business model – managing assets throughout the lifecycle Inspections, Preventive Maintenance, Predictive Maintenance ~20% Agreement Sales, Inside Sales of New business development and renewals sales Lead generation Corrective Maintenance ~30% Inspector, Technician, Inside Sales of Advice ba

  7. Slide 7: Global footprint – strengthening presence in Asia Pacific

    Global footprint – strengthening presence in Asia Pacific ~40% ~45% ~15% of sales of sales of sales MHE-DEMAG acquisition Countries with direct service operations 7 © 2021 Konecranes. All rights reserved. August 2021

  8. Slide 8: Available industrial crane service market & favorable trends

    Available industrial crane service market & favorable trends Safety Productivity Sustainability Digitalization EUR 1Obn+ market Outsourcing Regulations Aging industrial Rise of Asia and compliance workforce 8 © 2021 Konecranes. All rights reserved. August 2021

  9. Slide 9: Revenue growth drivers

    Revenue growth drivers Agreement base expansion Digital services Equivalent spare parts • Service programs – tailored to cover • CheckApp for Daily Inspections • Equivalent replacement parts and all segments and customer types • Digitized Slings and Accessories components for third party • Installed

  10. Slide 10: Profitability drivers

    Profitability drivers Organizational efficiency Material efficiency MHE-Demag Integration • Field operative productivity - • Centralized sourcing • Deliver synergies mobility/digitalization • Centralized supply & distribution • Critical mass/leverage • Centralization/virtual teams – • Procurement ex

  11. Slide 11: Agreement base

    Agreement base 11 © 2021 Konecranes. All rights reserved. August 2021

  12. Slide 12: Agreement base / breakdown by hoist brand

    Agreement base / breakdown by hoist brand Approximately 45% of the hoisting Konecranes machinery in our agreement base was manufactured by the Konecranes Third Parties Group; the other 55% by third parties. 45% Hoists can be replaced when they reach the end of their service life or even before then

  13. Slide 13: Agreement base / asset coverage by asset (crane) brand

    Agreement base / asset coverage by asset (crane) brand 60 2020 • Coverage is based on the estimated asset 50 2017 installed base in operation. • 1KC asset definition is applied. Asset 40 2020 generally refers to the crane: industrial crane, light crane system, jib crane, etc. 30 2017 • A single asse

  14. Slide 14: Financial performance

    Financial performance 14 © 2021 Konecranes. All rights reserved. August 2021

  15. Slide 15: Strong track record of performance – resilience through COVID

    Strong track record of performance – resilience through COVID Agreement Base, MEUR Sales, MEUR Adjusted EBITA, MEUR 300 276 283 1 400 250 17,9 % 20,0 % 268 1 260 17,2 % 1 180 1 192 1 190 1 187 16,6 % 18,0 % 244 1 200 250 231 15,1 % 200 212 16,0 % 13,7 % 209 205 1 000 14,0 % 200 180 150 161 12,0 % 80

  16. Slide 16: 2021 – return to growth / expand profitability

    2021 – return to growth / expand profitability Order intake, MEUR Sales, MEUR Adjusted EBITA, MEUR 300 400 120 25,0 % 266 257 255 253 256 250 255 342 234 350 315 19,2% 250 309 312 304 100 219 297 295 299 18,0% 17,2% 20,0 % 209 300 277 278 16,2% 16,7%16,8% 15,7% 18,7% 200 80 13,8% 250 16,1% 61 61 15,

  17. Slide 17: Personnel efficiencies secured going into H2/2021

    Personnel efficiencies secured going into H2/2021 # Personnel 8 200 • Business / digital transformation continues 8 000 7 800 Recruited 100+ operatives to drive organizational efficiency. to due to a new agreement 7 600 7 400 • MHE-Demag integration well underway. 7 200 7 000 • Lean thinking. Contin

  18. Slide 18: Remote monitoring provides real-time insights to demand environment

    Remote monitoring provides real-time • Service orders driven by capacity utilization and industrial production insights to demand environment i.e., equipment usage. • Remote monitoring provides real-time insights by customer, industry and region. • Allows for more dynamic planning, allocation of res

  19. Slide 19: Customer satisfaction – NPS approaching world class levels

    Customer satisfaction – NPS approaching world class levels Net Promoter Score, R12M • Systematic and comprehensive use of 60% Voice of Customer and Net Promoter Score. 50% • Response/resolution metrics and 40% follow-up for all customer feedback. 30% • Real-time visibility supplemented by 20% Natura

  20. Slide 20: Digitalization enabling growth and profitability

    Digitalization enabling growth and profitability 20 © 2021 Konecranes. All rights reserved. August 2021

  21. Slide 21: Digitally enabled customer experience / ecosystem

    Digitally enabled customer experience / ecosystem Crane owners yourKONECRANES portal AI, machine learning, eCommerce STORE TRUCONNECT RPA, predictive engines Alerts and notifications Remote Monitoring Customer, asset, maintenance, Voice of Customer Condition, usage & operating data condition & opera

  22. Slide 22: Increasing adoption of the digital ecosystem

    Increasing adoption of the digital ecosystem % of assets under agreement eCommerce adoption – yourKONECRANES customer adoption in 1KC digital ecosystem all brands by order lines 88% 40% 40% 87% 35% 35% 86% 30% 30% 85% 25% 25% 84% 20% 20% 83% MHE Demag & remaining countries to 15% 15% 82% be complete

  23. Slide 23: Digitalization focus areas

    Digitalization focus areas Service Delivery Efficiency Digital Sales Services Efficiency Customer Experience Smart Service Technologies Quality 23 © 2021 Konecranes. All rights reserved. August 2021

  24. Slide 24: CheckApp for Daily Inspections

    CheckApp for Daily Inspections Intuitive-to-use mobile application for crane operators, production No. of assets with CheckApp managers and safety personnel to perform daily pre-shift checks. 16 000 Comprehensive reporting at yourKONECRANES.com. 14 000 12 000 10 000 DATA ENTRY 8 000 Super simple and

  25. Slide 25: Digitized Slings and Accessories Inspection

    Digitized Slings and Accessories Inspection Enables easy and reliable identification of slings and accessories. Slings and Accessories Inspection – Devices Recorded Helps to keep track of inventory and inspection planning. 9000 Devices passed Devices failed Devices recorded Devices with RFID Agreeme

  26. Slide 26: TRUCONNECT Remote Monitoring

    TRUCONNECT Remote Monitoring Retrofits are now available for multiple brands. Remote monitoring TRUCONNECT connections is the key enabler of predictive maintenance. 16 500 6 000 5 900 16 000 TRUCONNECT modem kit for Konecranes Q platform hoists 5 800 15 500 5 700 15 000 5 600 5 500 14 500 5 400 TRUC

  27. Slide 27: Predictive maintenance “engine”

    Predictive maintenance “engine” LAUNCHED SALES CASE Repair quote PREDICTION MODELS Predictions based on TRUCONNECT SERVICE REQUEST data of needed maintenance actions. Repair order TRUCONNECT WARNINGS Hoist/brake, wire rope has reached its economical lifetime. 27 © 2021 Konecranes. All rights reserve

  28. Slide 28: Smart technologies

    Sway Control Smart technologies Retrofits and modernizations We’re using smart technology and features to transform customer Protected Areas Snag Prevention assets and optimize safety, productivity and sustainability. Side Pull Prevention Condition/Remote Monitoring Load Display Collision Avoidance

  29. Slide 29: Equivalent Parts

    Equivalent Parts Extending our offering from genuine Konecranes & other OEM spare parts to equivalent replacement parts for other all makes and models. Reverse Engineered and cross-referenced commercial items. Asset/component data and 1KC processes/systems are key enablers. Equivalent replacement ro

  30. Slide 30: Digitalization focus areas

    Digitalization focus areas Service Delivery Efficiency Digital Sales Services Efficiency Customer Experience Smart Service Technologies Quality 30 © 2021 Konecranes. All rights reserved. August 2021

  31. Slide 31: Customer Experience

    Customer Experience Empowering our customers and personnel with the right information at the right time. Digital journey Customer engagement Customer support Harmonized digital experience across Multi-channel communications and Ticketing and escalation. all touch points and E2E integration. customer

  32. Slide 32: Sales efficiency

    Sales efficiency Harmonize ways of working and end-to-end processes to ensure sales and back-office operations are aligned, data is leveraged, and automation is utilized. Configurators / quote automation Mobile sales tools Sales enablement platform Standardize offering, drive end-to-end Field Ops ca

  33. Slide 33: Planning optimization

    Planning optimization Delivering on total service commitment while optimizing our field operative time. Planning board Mobile planning board • Integrated planning tool • Map visualization Real time mobile access to FSM • Autofill/auto-planning • Route optimization planning board, both individual • P

  34. Slide 34: Field operative tools

    Field operative tools Driving efficiency, data quality and employee experience. Modular mobility platform Asset data enrichment Intelligent troubleshooting Modular mobility App highlights missing Intelligent troubleshooting application platform asset data and makes the platform that helps field deli

  35. Slide 35: Takeaway/ambition level

    Takeaway/ambition level 35 © 2021 Konecranes. All rights reserved. August 2021

  36. Slide 36: Takeaway

    Takeaway ◎Digitalization has ◎MHE-Demag acquisition strengthens transformed the business our foothold in Asia-Pacific • Digital customer experience and ecosystem • Increasing share of revenue from Asia-Pacific drive growth and retention • Expanded opportunity in servicing non-crane • Sales and servi

  37. Slide 37: Ambition

    Ambition ◎Revenue growth High single digit growth target over the cycle. ◎Profitability expansion Driven by leverage, efficiencies, higher margin products and services. 37 © 2021 Konecranes. All rights reserved. August 2021

  38. Slide 38: Q&A

    Q&A 38 © 2021 Konecranes. All rights reserved. August 2021

  39. Slide 39: NOT JUST LIFTING THINGS, BUT ENTIRE BUSINESSES

    ® NOT JUST LIFTING THINGS, BUT ENTIRE BUSINESSES

Konecranes — Investor Day (August 2021) on 6ix