Slide 1: Global Leader in Sustainable Cargo Flow
Global Leader in Sustainable Cargo Flow Investor Presentation – Q1/2023
Slide 2: Disclaimer
Disclaimer Although forward-looking statements contained in this presentation are based upon what management of the company believes are reasonable assumptions, there can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ mater
Slide 3: Content
Content 1. Global Leader in Sustainable Cargo Flow 2. Refocused strategy 3. Business areas Kalmar Hiab MacGregor 1. Recent development 2. Financials 3. Sustainability as a growth driver 4. Governance 3
Slide 4: MACGR E : Ui = MACGR R A LE L A OB GL €
0 E A : Ui = MACGR R A LE L A OB GL €
Slide 5: Cargotec today based on 2022 figures
Cargotec today based on 2022 figures Sales: EUR 1,943 million Comparable operating profit: 14% 9.8% (EUR 190 million) 47% Sales: EUR 4,089 million Sales Comparable operating profit: 4,089 Sales: EUR 1,578 million 8.1% (EUR 332 million) MEUR Comparable operating profit: 14.2% (EUR 224 million) Servic
Slide 6: Cargotec refocuses for higher financial performance
On 30 March 2022, Cargotec announced that it refocuses for higher financial performance through sustainability and growth in profitable core businesses 6
Slide 7: Future core business portfolio focuses on high margin solutions
Our future core business portfolio focuses on high margin solutions and recurring business Core Businesses Exit Equipment Mobile Shuttle & Heavy cranes Equipment Equipment Straddle carriers = ASC, RTG, RMG, STS Services Services and Bromma Services automation 7
Slide 8: Focus on core businesses will take profitability to next level
Focus on core businesses will take Cargotec profitability to next level SALES SALES SALES 3.5b€ 0.6b€ 4.1b€ COMPARABLE OP COMPARABLE OP COMPARABLE OP 388M€ (11.3%) -56M€ (-8.8%) 332M€ (8.1%) SERVICE SALES SERVICE SALES SERVICE SALES 963M€ (28%) 301M€ (47%) 1,264M€ (31%) ECO PORTFOLIO share of ECO PO
Slide 9: Core businesses are growing with stable profitability
Core businesses are growing with stable profitability… MEUR MEUR +6%1 -5%1 1) Sales CAGR 2013-2022 9 *) Kalmar heavy cranes and MacGregor All figures management estimates
Slide 10: Consistently delivering double digit profitability
…with both consistently delivering double digit profitability MEUR Sales CAGR 2013-2022 +5% +7% New Kalmar figures management estimates 10
Slide 11: Solid cash conversion in core businesses over the cycle
Solid cash conversion* in core businesses over the cycle *) Operative Cash flow divided by Operating Profit 11
Slide 12: Well diversified core businesses in attractive markets
Well diversified core businesses are in attractive markets and segments Global terminal APAC operators Other 14% Engineering Other ports Defence and terminals EMEA 50% Timber, pulp & paper Core business Waste & recycling Segment geographical split1 split1 Road & Rail Distribution AMER Retail and 36%
Slide 13: Participating in solving global challenges with customers
We want to participate in solving global CLIMATE challenges together CHANGE with our customers LABOUR World in CHANGING SCARCITY 2030 LOGISTIC CHAINS LIMITED RESOURCES 13
Slide 14: Solving customers' sustainability challenges
By solving our customers’ sustainability challenges, we will Make the industry more sustainable Grow faster Significantly than the market improve our profitability 14
Slide 15: Strategy for profitable growth centers on sustainability
Our strategy for profitable growth centers on sustainability Investing in Driving Actively seeking Aiming for innovation to increasing organic and highest ESG be sustainability recurring inorganic standards in leader revenues growth our industry Strong Leading Leadership market positions brands & pe
Slide 16: Continue investing in innovation
We will continue investing in innovation to be the sustainability leader in our industry 80 MEUR Focus on electrification, Helping customers with Accelerating eco portfolio growth robotics and operator >90% of R&D investments digitalisation shortage and annually1 emission Since 20172 reduction 1) Co
Slide 17: Increasing recurring revenues serving customers
We drive increasing recurring revenues when we serve our customers Fast growing and highly profitable service business 5% 920MEUR Focus on equipment New CAGR1 SALES2 businesses recurring with short revenue 180MEUR Accelerated growth from digitalisation and spare part capture rates replacement cycle
Slide 18: Multiple organic and inorganic growth opportunities
We have multiple organic and inorganic growth opportunities GROWTH PORTFOLIO CRITERIA ORGANIC M&A FOCUS Strengthening our Market portfolio and filling white spots in the offering Adjacent to core Growing Niche Eco portfolio businesses New services related to our core offerings Business New applicati
Slide 19: Aim for highest ESG standards in our industry
We aim for highest ESG standards in our industry and we have solid foundation in place Our 1.5° Safe and inclusive Transparent and promise commitment value chain ethical governance Proof SSAB Management remuneration tied Kalmar AutoStrad Smart Safety collaboration to sustainability performance 19
Slide 20: Performance targets for core businesses
Cargotec’s performance targets for its core businesses Eco portfolio: double sales growth Sales growth faster compared to traditional products than market1 Reduce CO2 emissions in our Comparable operating value chain2 profit 2025: -25% 2030: -50% 2025: 12% 2030: 15% Growing dividend Gearing below 30
Slide 21: Key levers for higher performance up to 2025
These are the key levers for higher performance up to 2025 12% Levers for higher profitability: Sales margin improvement › Supply chain developments › Service growth (capture rates, digital solutions, eCommerce) › Eco portfolio sales growth Productivity › Kalmar, Hiab and shared services operational
Slide 22: An investment in Cargotec is an investment in a more sustainable future
An investment in Cargotec is an investment in a more sustainable future Growing by making customer’s operations more sustainable Business in diversified attractive growth segments and markets Significant installed base for growing service business Solid track record of delivering 5% annual growth an
Slide 23: MacGregor strategic evaluation completed
MacGregor strategic evaluation completed ▪ MacGregor will not be part of Cargotec’s portfolio in the future ▪ From a value creation perspective, the timing for divestment is not ideal ○ Financial market uncertainty ○ Early phase of turnaround ▪ December 2022 orderbook 927M€, supporting 2023 revenue
Slide 24: Steps to strengthen MacGregor profitability in 2023
We have taken further steps to strengthen MacGregor profitability in 2023 Merchant and Service Offshore Merchant and Service Actions Outcome in 2023 divisions delivered solid ● Downsizing the ● Planned headcount reduction by 160 profitability in 2022 and Offshore organization ● Planned annualized sa
Slide 25: Appendix
[¢¥ CARGOTEC 7
Slide 26: Kalmar
Kalmar 26
Slide 27: Kalmar positioned to benefit from electrification
Kalmar is in unique position to benefit from the growth prospects in electrification Development of historical financials MEUR Kalmar is the global leader in sustainable cargo handling for ports, terminals, distribution centres and heavy industry. Number of personnel Sales 5,012 MEUR 1,943 Service a
Slide 28: Leading brand in mobile equipment and services
Market leader Setting the standards Most selling Global leader Lifecycle services in hybrid and electric in counterbalanced terminal tractor in Bromma and parts for all shuttle & container handlers. in North America. spreaders. customer segments. straddle carriers. A leading brand in mobile equipmen
Slide 29: Serving a large variety of customer segments
Ports & Heavy Distribution Forestry Metal terminals logistics We are serving a large variety of customer segments around the world… 29
Slide 30: Kalmar well diversified and profitable
After exiting loss making heavy cranes business, Kalmar is well diversified and profitable… Services share of sales1 Sales by customer segment, Geographical sales split1 management estimate2 Other APAC Global terminal 15% operators Metal and forestry EMEA 42% 34% Heavy logistics SERVICES AMER Other
Slide 31: Steady growth with replacement market and diversification
…with steady growth supported by a robust replacement market and segment diversification MEUR Sales CAGR 2013- 2022 +5% *Figures management estimates 31
Slide 32: Leading market position in all core segments
..and have a leading market position in all core segments MARKET SIZE* KEY GLOBAL POSITION & MEDIUM KEY COMPETITORS (EUR million) SEGMENTS TERM MARKET TREND Ports & Terminals, REACHSTACKERS AND ECH’S ~900 Heavy Logistics #1 in Europe Heavy Logistics, Metal, FORKLIFT TRUCKS ~1,100 Forestry, Ports & T
Slide 33: Only global supplier with fully electric portfolio
Kalmar is the only global heavy material handling equipment supplier with a fully electric portfolio! 33
Slide 34: Focus shifting to medium and small terminals
Kalmar’s focus is shifting from large terminals to medium and small terminals MEGA TERMINALS MEDIUM AND SMALL TERMINALS GM-% Medium service GM-% Mid- High service Low single digits potential double digits potential 34
Slide 35: Over 80% of sea terminals are small or medium sized
Over 80% of global sea terminals are small or medium sized, driving demand for mobile equipment and horizontal transportation Smaller terminal demand driven by changes in logistic chain, not only by global trade growth. z 35
Slide 36: Europe's intermodal terminals operate with mobile equipment
Most of Europe’s +500 intermodal terminals or depots operate with Mobile Equipment EU has ambition to increase share of rail freight from 18% to 30% by 2030. That would mean doubling the transport volumes on rail and higher utilisation of intermodal terminals and equipment Land freight modal share 2
Slide 37: Replacement market size EUR 2.5B annually
The current replacement market size for the Kalmar equipment is EUR 2.5B€ annually and the market is expected to double in the next decade Total Capacity MTEU The replacement market will grow in coming years, as the container terminal capacity has expanded significantly during the last two decades.
Slide 38: Container throughput estimated to continue to grow
Container throughput is estimated to continue to grow TEU million Growth from 2013 to 2026 48% CAGR 3.1% +3.6% +2.6% +3.9% -0.5% +0.8% +7.1% +2.4% -0.3% +4.9% +6.6% +2.6% +5.1% +1.3% 2020-2026: Drewry: Container forecaster Q4 2022 2019: Drewry: Container forecaster Q4 2021 2018: Drewry: Container fo
Slide 39: Strong development in Kalmar services
We are seeing STRONG development in the Kalmar services Number of Service sales Service OP Share of parts 5 year parts equipment are 1/3 of total growth is sold through e- sales CAGR*: under service Kalmar twice that of commerce: 5% contracts: revenue sales growth* >3700 45% Enabled by 1,300 Kalmar
Slide 40: Spare parts will continue to grow in an electric future
Spare Parts will continue to grow in an Electric Future Share of electric units in Kalmar installed base 2021 2025 est 2030 est Parts Parts Parts potential index potential index potential index 100 102.1 99.6 Share of electric units in Kalmar installed base will grow over the decade. Parts potential
Slide 41: Eco Portfolio orders are growing
Eco Portfolio orders are growing 35% Order split 36% Order split from Eco from Electric Portfolio Forklifts* 2022 2022 (+7pp YoY) (+5 pp YoY) *) Light & Medium electric forklifts 41
Slide 42: Strong interest in new Kalmar Electric Reachstacker
Strong interest in the new Kalmar Electric Reachstacker 5 year total cost of ownership comparison The new Kalmar Electric Reachstacker will play a key role 100% in helping us to achieve our 94% 80% target of zero emissions by 2030. Our investments in electrification, Eco Gloria Electric hybrid solut
Slide 43: Projected market demand for electric equipment
Projected market demand for electric equipment in the next few years Europe Greater China ▪ High EV readiness in ▪ Medium EV readiness general ▪ Medium infrastructure North America ▪ High infrastructure maturity readiness ▪ Major regional ▪ Sustainability targets South East Asia ▪ Primarily non-prem
Slide 44: New Kalmar continues on path of profitable growth
New Kalmar continues on the path of PROFITABLE GROWTH ▪ Robust & growing equipment replacement market GROWING MARKETS ▪ Increased customer demand for zero emission solutions FASTER THAN ▪ Portfolio aimed at growing small/medium sized terminals MARKET GROWTH ▪ Eco portfolio growth twice that of the t
Slide 45: Integrated port automation solutions and services
Kalmar provides integrated port automation solutions, services and horizontal transportation equipment Services Automated Horizontal Transportation Truck / Transfer area ASC stack area (3rd party equipment*) Quay crane area (3rd party equipment*) equipment *Cargotec is planning to exit heavy ports c
Slide 46: Hiab
CARGOTEC
Slide 47: Hiab global market leader in on-road load handling
Hiab is a global market leader in on-road load handling solutions Development of historical financials Hiab is the leading provider of smart and sustainable MEUR on-road load handling solutions with customers operating in logistics, construction and a variety of industries. Number of personnel Sales
Slide 48: Hiab key figures and sales split
HIAB IS A GLOBAL MARKET LEADER IN ON-ROAD LOAD HANDLING SOLUTIONS Sales Average sales growth1 Comparable operating Profit Operating profit Personnel MEUR 1,578 7% 224 MEUR / 14.2% MEUR 217 / 13.8% 3,778 Services share of sales Sales by customer segment, Geographical sales split management estimate2
Slide 49: Multi-brand strategy with segment leading brands
MULTI-BRAND STRATEGY WITH MARKET SEGMENT LEADING BRANDS DEMOUNTABLES TRUCK MOUNTED LOADER FORESTRY & TAIL LIFTS SERVICES FORKLIFTS CRANES RECYCLING MULTILIFT MOFFETT HIAB LOGLIFT WALTCO PROCARE GALFAB PRINCETON EFFER JONSERED DEL HIPERFORM ARGOS ZEPRO 49
Slide 50: Serving diverse customers in essential industries
SERVING A LARGE VARIETY OF DIVERSE CUSTOMERS IN ESSENTIAL INDUSTRIES Construction Retail & final mile SINGLE TRUCK OWNER Infrastructure Agriculture FLEETS Waste management Recycling Special logistics Rail R RENTAL Forestry Defence Fire rescue Wind 50
Slide 51: Hiab is the leader in its markets
HIAB IS THE LEADER IN THE MARKETS WE OPERATE MARKET SIZE* KEY GLOBAL MARKET POSITION KEY COMPETITORS (EUR million) SEGMENTS Waste & recycling, DEMOUNTABLES ~770 Defence #1 in World FORESTRY & Forestry, Waste & RECYCLING CRANES ~615 recycling #2 in world #1-2 in the LOADER CRANES ~1,700 Construction,
Slide 52: Growing in attractive and resilient segments
WE WILL CONTINUE TO GROW IN ATTRACTIVE AND RESILIENT SEGMENTS UNDERLYING MARKET 2014-2019 GREW BY 1% WE WILL SELECT ATTRACTIVE MARKETS WHERE WHILE HIAB SALES GREW 9%... WE CAN CLEARLY DIFFERENTIATE Other Construction Hiab UNDERLYING MARKET Defence CAGR 2014-2019 CAGR 2022-2025 9% 5% Waste & Logistic
Slide 53: Turnaround to resilient profitable growth
TURNAROUND TO RESILIENT PROFITABLE GROWTH OPERATING PROFIT REVENUE CAGR 2013-2022 217M x 2,33 1,578M x 1.81 x 8.3 7% 3% 872M 26M 2013 2022 2013 2022 MARKET HIAB Resilient in COVID-19 period. Double digit returns in last 8 years. 13.8% OP 2022. Source: Cargotec reported financials 2013-2022 53
Slide 54: Underlying market growth 2013-2021
OUR UNDERLYING MARKET HAS GROWN +3% CAGR 2013-2021 WITH A SIGNIFICANT DIP OF 6% IN 2014-2016… Source: IHS Markit 54
Slide 55: Growing twice the market with high profitability
…WHILE WE HAVE PROVEN TRACK-RECORD BY GROWING TWICE THE MARKET GROWTH AND SUSTAINING HIGH PROFITABILITY DURING DOWNTURNS Source: Cargotec reported financials Underperforming 2011-2022 Turnaround Growth strategy Covid business Acquisitions 55
Slide 56: Hiab services resilient profitable growth
HIAB SERVICES RESILIENT PROFITABLE GROWTH HiConnect connected Non-recurring CAGR Recurring services equipment services 24.000< 18% 13% eCommerce CAGR 2020-2022 YTD 26% Operating leverage Recurring 2020-2022 30%< services 2020 Q3/2022 82% LTM 56
Slide 57: Loader cranes possess potential for further growth
LOADER CRANES POSSESS GREAT POTENTIAL FOR FURTHER GROWTH AS CUSTOMERS REQUIRE MORE FLEXIBLE SOLUTIONS Landscaping Waste & recycling Building materials Roofing 57
Slide 58: Eco portfolio sales 23% of revenues
ECO PORTFOLIO SALES 23% OF TOTAL REVENUES IN 2022 (JAN-SEP) ELECTRIC MOFFETTS ePTO CYCLONE TANK The first electric truck mounted Enabling crane operation without Reduces weight and fuel consumption forklifts in the world running truck engine ECO PORTFOLIO GROWTH +225% (Jan-Sep 2022/2021) Reducing op
Slide 59: Construction output driving growth opportunity
Construction output driving growth opportunity EMEA construction output AMER construction output y/y change (%) y/y change (%) Oxford Economics: Industry output forecast 12/2022 59
Slide 60: Strong foundation for long term growth
STRONG FOUNDATION TO DELIVER LONG TERM GROWTH AND VALUE CREATION Great business with STRONG BRANDS Expanded presence in ATTRACTIVE, FAST GROWING MARKETS and SEGMENTS Strengthening our resilience and customer centricity through SERVICE EXCELLENCE Building foundation for EXECUTION EXCELLENCE Setting i
Slide 61: MacGregor
MacGregor ——=—
Slide 62: MacGregor maritime cargo and load handling provider
MacGregor is a world-leading provider of intelligent maritime cargo and load handling solutions Development of historical financials MEUR MacGregor is the leader in sustainable maritime cargo and load handling with a strong portfolio of products, services and solutions. Number of personnel Sales 1,9
Slide 63: MacGregor does not fit refocused strategy
MacGregor has strong growth prospects, but does not fit within our refocused strategic direction Global leader in sustainable maritime cargo and load handling solutions Strong growth prospects driven by positive cycle development, increasing energy prices, offshore wind growth and carbon capture Doe
Slide 64: MacGregor market outlook positive
MacGregor’s market outlook is positive despite year- on-year decline in merchant vessel contracting Merchant ships market trends Market cycle position (indicative) Containers LNG Car carriers Tankers Weakening Offshore Wind Strong market market Dry Bulk Weak Offshore O&G Recovering market RoRo marke
Slide 65: Merchant Ships and Offshore contracting outlook positive
Merchant Ships and Offshore contracting outlook positive Environmental regulation with accelerating energy efficiency Energy transition and increased energy security requirement drive requirement drives merchant ships contracting. mobile offshore unit contracting. Source: Clarksons Research, Septemb
Slide 66: Examples of MacGregor offering
Examples of MacGregor offering Intelligent solutions RoRo equipment Hatch covers, container lashings Services Electric cranes Horizon Gangways Colibri cranes 66
Slide 67: Recent performance
Recent performance a. - a5 N CARGOTEC
Slide 68: Record year for Kalmar and Hiab
2 February 2023 / Financial Statements Review • All-time high orders, sales and comparable operating profit Record year for • Record high service and eco portfolio sales Kalmar and Hiab • MacGregor’s portfolio rationalisation had significant negative impact on operating profit 68
Slide 69: Highlights of 2022
Highlights of 2022 – Core businesses’ comparable operating profit increased to EUR 388 million Orders received increased by 10% ● Strong orders in all businesses Sales increased by 23% ● Service sales increased by 17% ● Eco portfolio increased by 54% Comparable operating profit increased by 43% ● Ka
Slide 70: Equipment activity remained at a high level
Equipment activity remained at a high level +1% +4% -1% +4% -3% -11% +10% -3% Kalmar Mobile Equipment: -5% Change in machine activity – -1% Q4/22 vs. Q3/22 Hiab loader cranes: Actual vs. estimated operating time, Q4/2022 Cargotec’s financial statements review 2022 | 2 February 2023 70
Slide 71: Market environment
GDP growth1, % Container throughput growth2, % Manufacturing output growth3, % Market environment Slower growth expected for 2023 Global US Euro Global EMEA AMER Global US Euro area China ASEAN 5* area APAC China *ASEAN 5: Indonesia, Malaysia, Philippines, Thailand, Vietnam. Change direction since l
Slide 72: Orders received increased in all businesses
Orders received increased in all businesses in 2022 Orders received MEUR +10% (y/y) +13% (y/y) +50% (y/y) +75% (y/y) +5% -xx% -2% (y/y) (y/y) (y/y) +xx% +1% +6% (y/y) (y/y) (y/y) Cargotec’s financial statements review 2022 | 2 February 2023 72
Slide 73: Strong order book in all business areas
We enter into 2023 with a strong order book in all business areas Order book Order book by reporting MEUR segment, 31 December 2022 40% 26% 34% Cargotec’s financial statements review 2022 | 2 February 2023 73
Slide 74: Record high sales and comparable operating profit growth
Record high sales and strong comparable operating profit growth in the core businesses Sales Comparable operating profit MEUR MEUR x *) Including Corporate admin and support Cargotec’s financial statements review 2022 | 2 February 2023 74
Slide 75: Excellent performance in service business continued
Excellent performance in service business continued Service orders received +11% in 2022 Service sales +17% in 2022 ● Kalmar +18% ● Hiab +17% ● MacGregor +17% Service share 31% of total sales in 2022 Cargotec’s financial statements review 2022 | 2 February 2023 75
Slide 76: Kalmar Q4 – Record quarter
Kalmar Q4 – Record quarter Demand continued at a high level MEUR Q4/22 Q4/21 Change Sales increased by 44% Orders received 544 513 6% ● Service sales +15% Order book 1,428 1,302 10% ● Supply chain challenges Sales 618 430 44% continued Service sales, % 24% 30% -600 bps Comparable Comparable operatin
Slide 77: Hiab Q4 – Strong performance continued
Hiab Q4 – Strong performance continued with record sales Demand continued at a high level MEUR Q4/22 Q4/21 Change Orders received 377 384 -2% Order book 1,185 985 20% Sales increased by 35% Sales 456 339 35% ● Service sales +27% Service sales, % 25% 26% -100 bps ● Supply chain and truck Comparable c
Slide 78: MacGregor Q4 – Order book surged
MacGregor Q4 – Order book surged close to EUR 1 billion Orders received surged MEUR Q4/22 Q4/21 Change ● Driven by increase in merchant Orders received 269 153 75% vessels Order book 927 560 65% Sales increased by 17% Sales 165 141 17% ● Service sales +30% Service sales, % 55% 49% 600 bps Comparable
Slide 79: Financial highlights of 2022
Financial highlights of 2022 3,541 43% 23 Comparable MEUR operating profit MEUR Strong increase from Net result order book 2021 964 11.3% Core businesses* MEUR comparable Eco portfolio sales operating profit margin *) Core businesses = Hiab + Kalmar excluding heavy port cranes & Cargotec’s financial
Slide 80: Key figures of 2022
Key figures of 2022 Q4/22 Q4/21 Change 2022 2021 Change Orders received, MEUR 1,190 1,051 13% 4,862 4,427 10% Order book, MEUR 3,541 2,847 24% 3,541 2,847 24% Sales, MEUR 1,239 910 36% 4,089 3,315 23% Comparable operating profit, MEUR 89 45 95% 332 232 44% Comparable operating profit, % 7.2% 5.0% 22
Slide 81: Gearing improvement driven by good cash flow
Gearing improvement driven by good cash flow Net debt & gearing Maturity profile, 31 December 2022 MEUR Interest-bearing net debt / EBITDA 1.2 Cargotec’s financial statements review 2022 | 2 February 2023 81
Slide 82: Reduction in inventories supported operative cash flow
Reduction in inventories supported our operative cash flow in Q4 Cash flow from operations before financing items and taxes MEUR Cargotec’s financial statements review 2022 | 2 February 2023 82
Slide 83: Market leading technology and services driving growth
Market leading technology and services driving growth Investing in innovation Driving increasing Actively seeking organic Aiming for highest ESG to be sustainability leader recurring revenues and inorganic growth standards in our industry Kalmar announced a Kalmar signed a Hiab acquired Olsbergs, Ca
Slide 84: Financials
Financials 84
Slide 85: Outlook for 2023
Outlook for 2023 Cargotec estimates its core businesses’1 2023 comparable operating profit to improve from 2022 (EUR 3842 million) and MacGregor’s comparable operating profit in 2023 to be positive (EUR -472 million)3 1) Core businesses = Hiab + Kalmar excluding heavy port cranes and including all g
Slide 86: Navigated through exceptional operating environment
We have successfully navigated through an exceptional operating environment… What we have seen in How we have responded Core business comparable the markets OP ▪ Macroeconomic uncertainty ▪ We reduced our monthly costs by ▪ Covid-19 impact on 2020 10 MEUR in 4 weeks by deliveries, sales down 20% imp
Slide 87: Prepared for different future scenarios
…and we are Actions to reduce fixed costs reduction prepared for different compensated for the lost gross margin future scenarios Index Q1/20 = 100 200 Observe early signals - monitor 180 customer demand and equipment utilization 160 Rapid cost base adjustment enabled by scenario plans, like 140 › m
Slide 88: Capital allocation to growth, sustainability and shareholder returns
We will continue to allocate capital to growth, sustainability and shareholder returns GROWTH SUSTAINABILITY SHAREHOLDER RETURNS Cash spent on core business Core business R&D 2018-2022 Paid dividends 2013-2021 acquisitions in 2013-2022 EUR 323 million EUR 505 million EUR 105 million (2.4% of sales)
Slide 89: Examples of recent acquisitions and partnerships
Examples of recent acquisitions and partnerships United States Added roll -off hoist, a cable lift, to Hiab’s Acquired in 2021 portfolio A premier designer and BA: Hiab manufacturer of waste Sales in 2021: Acquisition enables growth in the US and handling equipment USD ~30 million in the waste segme
Slide 90: R&D focused on digitalisation, robotics and green energy
Our R&D efforts are focused on digitalisation, robotics and transitioning to green energy Digitalisation Green energy Robotics MATURITY Geared up From Mature data Quite for battery Early assistive driven Booming mature electric truck adaptors towards offering adoption autonomy Transforming World’s f
Slide 91: Aims for growing dividend of 30-50% of EPS
Cargotec aims for growing dividend of 30-50% of EPS Dividend, EPS & Payout ratio EUR ● Cargotec’s Board of Directors dividend proposal to the AGM to be held on 23 March 2023: ○ Dividend of 1.35 per class B share ○ Record date 27 March 2023 ○ Payment date 4 April 2023 ● EPS excl. items affecting comp
Slide 92: Service business continues to grow
Service business continues to grow Service sales 5% MEUR CAGR 92
Slide 93: Spare parts and maintenance form majority of service sales
Spare parts and maintenance form majority of our service sales Service sales: Kalmar MEUR, % Hiab MEUR, % MacGregor MEUR, % EUR 1,264 million Service orders received 544 26% Service orders received 418 23% Service orders received 325 33% 31% of total sales Service sales 551 28% Service sales 441 26%
Slide 94: Continue investing in innovation: capex and R&D
We will continue investing in innovation to be the sustainability leader in our industry Capital expenditure Research and development MEUR MEUR Capex investments: R&D investments focused on ▪ Our asset-light operating model does not require heavy ▪ Themes supporting our climate targets such as capit
Slide 95: Well diversified geographical sales mix
Well diversified geographical sales mix Top-10 countries by customer location 31% 36% 50% 47% United States, 28% Rest of 2021 2022 the world, ➜ 37% MEUR MEUR 3,315 4,089 Germany, 6% Canada, 3% UK, 5% 19% 17% Australia, 3% France, 4% South Korea, 3% China, 4% Netherlands, 3% Sweden, 3% 95
Slide 96: Sales by geographical segment by business area 2022
Sales by geographical segment by business area 2022 11% 36% 44% 41% 55% 44% 45% 15% 9% 96
Slide 97: Comparable operating profit development
Comparable operating profit development Kalmar Hiab MacGregor ** definition changed 2021, figures 2020 onwards according to the new definition 97
Slide 98: Sales and orders received development
Sales and orders received development MEUR MEUR MEUR Kalmar Hiab MacGregor 98
Slide 99: Gross profit development
Gross profit development MEUR 99
Slide 100: Net working capital development
Net working capital development MEUR 100
Slide 101: Strong cash flow
Strong cash flow MEUR Cash flow from operations before financing items and taxes 101
Slide 102: Income statement Q4 2022
Income MEUR Profit for the period Q4/22 -67.6 Q4/21 -8.2 2022 23.2 2021 246.7 statement Q4 2022 Other comprehensive income Items that cannot be reclassified to statement of income: Actuarial gains (+) / losses (-) from defined benefit plans 25.3 -0.5 27.7 -0.5 Gains (+) / losses (-) on designated sh
Slide 103: Balance sheet 31 December 2022
Balance sheet 31 December 2022 103
Slide 104: Cash flow statement Q4 2022
Cash flow statement Q4 2022 104
Slide 105: Sustainability as a growth driver
Sustainability as a growth driver 105
Slide 106: Aim for highest ESG standards in our industry
We aim for Profitable growth through highest ESG sustainability standards in our SOLUTIONS AND ACTIONS THAT industry DRIVE A CIRCULAR, 1.5°C WORLD HUMAN RIGHTS SUSTAINABLE FINANCE HEALTH & SAFETY RESPONSIBLE SOURCING DIVERSITY, EQUITY & INCLUSION & SALES 106
Slide 107: Cut CO2 emissions in value chain by 50%
Intelligent cargo handling is the solution to cut CO2 emissions in our value chain by 50%... Sco pes 1, 2 and 3: - Product 50% use-phase Examples of the solutions 1.5 °C scenario Product use-phase › Replacing fossil fuels as an energy source Product manufacturing Product › Fossil-free steel use-phas
Slide 108: Data-based action plan to go forward
Data-based action plan to go forward Progress so far Identified short-term activities Long-term ambition 2019 - 2022 2022 - 2025 2025 - 2030 Product use-phase Product use-phase Product use-phase ▪ Electric version available in all ▪ Transform the market more ▪ >50% of cargo and load handling product
Slide 109: Cargotec's carbon footprint 2019 (baseline)
Cargotec’s carbon footprint 2019 (baseline) 109
Slide 110: Validated actions in creating positive societal impact
Validated actions in creating a positive societal impact Rating Scale Score Year CDP D- to A A- 2022 INDUSTRY AVERAGE INDUSTRY AVERAGE Ecovadis Bronze, Silver, Gold, Gold 2022 Platinum ISS ESG D- to A+ C+ 2022 MSCI ESG CCC to AAA AA 2022 INDUSTRY AVERAGE INDUSTRY AVERAGE 110
Slide 111: Electrification offers significant growth opportunities
Electrification offers significant growth opportunities Examples Customer ROI Lower total cost Rapidly 3-5 increasing Demand Customers’ years** sustainability targets Electric version available Complete range of fully in all Cargotec’s product electric truck mounted Higher sales price and margin cat
Slide 112: Cargotec reports eco portfolio sales on quarterly basis
Cargotec reports eco portfolio sales on quarterly basis Cargotec’s eco portfolio consists of products and services that enhance customers’ sustainability with tangible environmental benefits, such as fully electric equipment. *) 2016-2020 based on the old eco portfolio criteria 112
Slide 113: Improved safety and high employee favorability
Cargotec continued to improve safety while employee favorability remained at a high level* Industrial injury frequency rate** Compass Employee Engagement survey 2022 75% favourability * Employee favorability, Compass 2021: 75% 113 **Number of lost time injuries per million hours worked
Slide 114: Governance
Governance 114
Slide 115: Casimir Lindholm appointed President & CEO
Casimir Lindholm appointed as President & CEO as of 1 April 2023 Casimir Lindholm President & CEO as of 1 April 2023 ● Born 1971, M.Sc. (Econ.), MBA ● Former CEO of Eltel (2018-2022) & Lemminkäinen (2014-2018) ● Board positions: YIT (2022-), Cargotec (2021-2023*), Uponor (2018-2022) among others *)
Slide 116: Leadership Team ready to deliver on the strategy
Committed and capable Leadership Team ready to deliver on the strategy Mika Vehviläinen Mikko Puolakka Michel van Roozendaal Scott Phillips Leif Byström CEO (until end of March 2023) CFO President, Kalmar President, Hiab President, MacGregor Outi Aaltonen Carina Geber-Teir Mikael Laine Soili Mäkinen
Slide 117: Board of Directors
Board of Directors Jaakko Eskola Ilkka Herlin Teresa Kemppi-Vasama Johanna Lamminen Chair, b. 1958 Vice chair, b. 1959 Member, b. 1970 Member, b. 1966 117 Casimir Lindholm Kaisa Olkkonen Teuvo Salminen Heikki Soljama Member, b. 1971 Member, b. 1964 Member, b. 1954 Member, b. 1954 117
Slide 118: Largest shareholders 31 January 2023
Largest shareholders 31 January 2023 % of % of shares shares % of votes 14.1% 1 Wipunen varainhallinta Oy 14.1 23.7 2 Mariatorp Oy 12.3 22.9 3 Pivosto Oy 10.7 22.2 4 KONE Foundation 3.0 5.5 12.3% 5 Ilmarinen Mutual Pension Insurance Company 2.1 0.9 6 Elo Mutual Pension Insurance Company 1.1 0.5 59.9
Slide 119: Notes
Notes CARGOTEC
Slide 120: For more information, call us or visit our IR-page
For more information, call us or visit our IR-page Next upcoming IR events 23 March Annual General Meeting, Helsinki & virtual Q1 2023 Pre-silent call with CFO Mikko 6 April Puolakka 27 April Cargotec Interim report January–March 2023 Investor relations contact information Meeting requests: Heidi Gu