Hiab Oyj Class B · OMXHEX:HIAB
Hiab Oyj Class B — Cargotec — Q4 2023 Earnings Presentation
39 slides from Hiab Oyj Class B's earnings presentation, Feb 1, 2024
Slide 1: Record year in sales and profitability
1 February 2024 Record year in • Orders received in Q4 improved from Q3 and sales and amounted to 1,015 MEUR • Record-high operative cash profitability flow of 544 MEUR in 2023 Cargotec’s Financial Statements review 2023 • MacGregor turnaround progressing according to the ● Casimir Lindholm, CEO & I
Slide 2: Disclaimer
Disclaimer The following applies to this presentation, the oral presentation of the information in this presentation by Cargotec Corporation (the “Company” or “Cargotec”) or any person on behalf of the Company, and any question-and-answer session that follows the oral presentation (collectively, the
Slide 3: Contents
Contents ● 2023 highlights ● Group level development ● Business areas ● Financials and outlook ● Q&A 3
Slide 4: Highlights of 2023 – Step change in profitability
Highlights of 2023 – Step change in profitability Orders received decreased by 18% to EUR 3,987 million ● Decline from a record level Sales increased by 12% to EUR 4,569 million ● Service sales increased by 9% ● Eco portfolio increased by 18% Comparable operating profit increased by 62% to EUR 513 m
Slide 5: Orders received at pre-covid level, increase from the third quarter
Orders received at pre-covid level, increase from the third quarter Orders received MEUR -18% (y/y) -15% (y/y) -16% (y/y) -22% (y/y) -19% (y/y) +6% (y/y) -18% (y/y) -26% (y/y) Cargotec’s Financial Statements Review 2023 | 1 February 2024 5
Slide 6: Order book of EUR 2.8 billion gives a good starting point for 2024
Order book of EUR 2.8 billion gives a good starting point for 2024 Order book -21% (y/y) MEUR +7% (y/y) -33% (y/y) -28% (y/y) *Kalmar excluding heavy cranes business which will be discontinued and divested Navis software business Cargotec’s Financial Statements Review 2023 | 1 February 2024 6
Slide 7: Comparable operating profit increased despite one-off cost related to cost saving actions
Comparable operating profit increased despite one-off cost related to cost saving actions Sales Comparable operating profit* MEUR MEUR x Cargotec including corporate admin and support The comparable operating profit definition changed in 2023, Cargotec’s Financial Statements Review 2023 | 1 February
Slide 8: Service sales and orders increased from 2022
Service sales and orders increased from 2022 Service orders received ● +3% in 2023 ● -4% in Q4/23 Service sales ● +9% in 2023 ● +0% in Q4/23 Service share 30% of total sales Service sales, MEUR Service orders received, MEUR Cargotec’s Financial Statements Review 2023 | 1 February 2024 8
Slide 9: Eco portfolio sales increased to a record level
Eco portfolio sales increased to a record level Eco portfolio sales +18% in 2023 ● Increase in climate solutions and in circular solutions ● Increase in all business areas Eco portfolio share 33% of Cargotec’s total sales in 2023 Eco portfolio share of sales Eco portfolio sales +3% in Eco portfolio
Slide 10: In October, we announced cost saving actions to safeguard profitability
In October, we announced cost saving actions to safeguard profitability and to emerge stronger… Funding the growth journey Solving customers’ sustainability challenges with high quality and Continuous profitability improvements, continued R&D innovative solutions investment and service business grow
Slide 11: …and we have progressed according to the plan
…and we have progressed according to the plan Fixed cost saving actions to target 50 MEUR annual savings in 2024 ▪ 10 MEUR in the group functions Scenario ▪ 20 MEUR in Kalmar planning ▪ 20 MEUR in Hiab actions ▪ 50% of the saving would be achieved from reduction of ~300 roles ▪ Estimated one-off cos
Slide 12: Business areas
Business areas 12
Slide 13: Hiab Q4/23: Order intake improved vs prior year
Hiab Q4/23 • Stable demand and sales Order intake • Operating profit impacted by one-off costs improved vs prior • Cash flow increased year substantially 13
Slide 14: Stable order intake fifth quarter in a row
Stable order intake fifth quarter in a row Orders received and order book MEUR Q4/23 Q4/22 Change MEUR Orders received 401 377 6% Order book 799 1,185 -33% ● Inflation and interest rates are negatively impacting orders received but truck lead times are improving ● Order book remains above historical
Slide 15: Equipment and service sales stable
Equipment and service sales stable Sales and Service sales MEUR Q4/23 Q4/22 Change MEUR Sales 450 456 -1% Service sales 114 113 0% Service sales, % 25% 25% 0 bps ● Strong operational execution ● Service sales flat ● Supply chain continues to improve with a strong focus on supplier development Cargot
Slide 16: Operating profit declined due to one off costs
Operating profit declined due to one off costs 14.2% Comparable operating profit excluding one-off MEUR Q4/23 Q4/22 Change MEUR items Comparable operating 48 62 -22% profit Comparable operating 10.6% 13.5% -290 bps profit margin ● EUR 10 million restructuring cost in line with Q3 announcement ● EUR
Slide 17: Eco portfolio orders and solutions are growing
Eco portfolio orders and solutions HIAB wspr Standard are growing INCREASED HEALTH AND SAFETY Lower noise Lower emissions Less fatigue GREAT DRIVEABILITY AND FLEXIBILITY Increased driveability and operator experience Hybrid flexibility when needed EXTENDED OPERATING AREA Order split 31% Emission free
Slide 18: Kalmar Q4/23: Strong finish for a record year
• Demand stabilising Kalmar Q4/23 • Successful delivery of order book Strong finish for a • Continued high profitability record year • Cash flow increased substantially 18
Slide 19: Demand stabilising, sequential improvement in orders received
Demand stabilising, sequential improvement in orders received Orders received and order book MEUR Q4/23 Q4/22 Change MEUR Orders received 405 544 -26% Order book 1,024 1,428 -28% ● Continued good demand in mobile equipment used in industries and small- and midsized terminals ● Slow decision making i
Slide 20: Slower market activity visible in sales
Slower market activity visible in sales Sales and Service sales MEUR Q4/23 Q4/22 Change MEUR Sales 509 618 -18% Service sales 147 150 -2% Service sales, % 29% 24% 500 bps ● Lower order intake visible in sales ● Successful delivery of order book ● Service sales grew in constant currencies Cargotec’s
Slide 21: Improved profitability driven by successful management of inflationary pressures
Improved profitability driven by successful management of inflationary pressures 14.1% excluding one-off Comparable operating profit costs related to MEUR Q4/23 Q4/22 Change cost savings MEUR Comparable operating 67 69 -4% profit Comparable operating 13.1% 11.2% 190 bps profit margin ● Favourable sa
Slide 22: Multiple milestones achieved in portfolio electrification in 2023
Multiple milestones achieved in portfolio electrification in 2023 ● Successful commercial deliveries started for Electric Reachstacker and Heavy Forklift including first repeat order ● Third of light and medium forklift orders in 2023 in electric versions ● Eco portfolio sales and share of sales inc
Slide 23: MacGregor Q4 – Turnaround continued to progress according to the plan
MacGregor Q4 – Turnaround continued to progress according to the plan Orders received decreased ● Good demand in merchant and MEUR Q4/23 Q4/22 Change services ● Selective order intake in offshore Orders received 209 269 -22% Sales increased by 42% Order book 988 927 7% ● Service sales +4% Sales 234
Slide 24: Financials and outlook
Financials and outlook 24
Slide 25: Financial highlights
Financial highlights 484 544 19.9% MEUR MEUR ROCE Operating profit in Cash flow from (last 12 months) 2023 operations in 2023 1,515 12.8% Core businesses* MEUR comparable Eco portfolio sales operating profit in 2023 margin in 2023 .*Core businesses = Hiab + Kalmar excluding heavy port cranes Cargote
Slide 26: Strong cash flow in Q4 driven by high EBITDA and reduction in net working capital
Strong cash flow in Q4 driven by high EBITDA and reduction in net working capital Cash flow from operations before financing items and taxes MEUR Cargotec’s Financial Statements Review 2023 | 1 February 2024 26
Slide 27: Strong balance sheet and balanced maturity profile
Strong balance sheet and balanced maturity profile Net debt & gearing Maturity profile, 31 December 2023 MEUR Interest-bearing net debt / EBITDA 0.3 Cargotec’s Financial Statements Review 2023 | 1 February 2024 27
Slide 28: Board proposes a record dividend of 2.15 EUR per class B share
Cargotec’s Board of Directors proposes a record dividend of 2.15 EUR per class B share Dividend, EPS & Payout ratio Cargotec’s Board of Directors’ dividend EUR proposal for the AGM 30 May 2024: ○ Dividend of 2.15 per class B share ○ Record date 3 June 2024 ○ Payment date 10 June 2024 Cargotec aims f
Slide 29: Outlook for 2024
Outlook for 2024 Cargotec estimates1: Hiab’s comparable operating profit margin in 2024 to be above 12% Kalmar’s comparable operating profit margin in 2024 to be above 11% MacGregor’s comparable operating profit in 2024 to improve from 2023 (EUR 33 million) 1) The business area 2024 profitability ou
Slide 30: Kalmar demerger plan approved by Cargotec Board on 1 February
Kalmar demerger plan approved by Cargotec Board on 1 February
Slide 31: Chair of the Board quote on the demerger
THE PLANNING AND EVALUATION OF THE DEMERGER HAS PROGRESSED WELL. THE BOARD OF DIRECTORS WITH THE SUPPORT OF CERTAIN MAJOR SHAREHOLDERS, HAS AFTER CAREFUL CONSIDERATION DECIDED TO PROPOSE THE SEPARATION OF KALMAR FROM CARGOTEC BY MEANS OF PARTIAL DEMERGER TO INCREASE SHAREHOLDER VALUE - JAAKKO ESKOLA
Slide 32: Kalmar demerger plan approved by Cargotec Board
Kalmar demerger plan approved by Cargotec Board ● Cargotec’s Board of Directors has approved a demerger plan concerning the separation of Kalmar into an independent listed company. ● The Demerger is subject to approval by the AGM of Cargotec to be held on 30 May 2024. ○ The prospectus, which is expe
Slide 33: Structure of the planned transaction
Structure of the planned transaction Post transaction (and MacGregor solution) Kalmar and Hiab would be separate standalone businesses Envisaged structure post demerger Listing and ▪ Planned Kalmar listing on ownership Nasdaq Helsinki in July 2024 Existing Cargotec shareholders ▪ Kalmar fully owned
Slide 34: Kalmar Board of Directors proposed to be elected by Cargotec AGM
Kalmar Board of Directors proposed to be elected by Cargotec Annual General Meeting Further proposed members of the Board to be announced prior to the AGM CHAIR MEMBER MEMBER Jaakko Eskola Teresa Kemppi-Vasama Tapio Kolunsarka 34
Slide 35: Kalmar's highly experienced and committed management team
Kalmar’s highly experienced and committed management team as of April 1, 2024 Sami Niiranen Sakari Ahdekivi Carina Geber-Teir Francois Guetat Mathias Höglund Tommi Pettersson Marika Väkiparta President & CEO CFO Head of IR & Head of Integrated Head of Human Head of Strategy, Head of (upon demerger)
Slide 36: Preliminary timeline for the demerger and listing of Kalmar
Preliminary timeline for the demerger and listing of Kalmar* Provided the shareholders decide to proceed with the process 1 Apr 30 Apr May 28–29 May 30 May 30 June 1 July 2024 2024 2024 2024 2024 2024 2024 Sami Niiranen, Cargotec Demerger and Capital Cargotec Planned Planned first president and Q1/2
Slide 37: Cargotec
Cy CARGOTEC
Slide 38: Appendix
BUILT TO PERFORM i — CARGOTEC
Slide 39: Key financial figures
Key financial figures Q4/23 Q4/22 Change 2023 2022 Change Orders received, MEUR 1,015 1,190 -15% 3,987 4,862 -18% Order book, MEUR 2,812 3,541 -21% 2,812 3,541 -21% Sales, MEUR 1,193 1,239 -4% 4,569 4,089 12% Comparable operating profit, MEUR 111 85 31% 513 316 62% Comparable operating profit, % 9.3