Slide 1: Record-high profitability
20 July 2023 • Orders received back to Record-high pre-covid level • Strong development in profitability sales and profitability • Planned separation of Cargotec’s January–June 2023 half year report Kalmar and Hiab progressing according to Casimir Lindholm, CEO • Mikko Puolakka, CFO plan Michel van
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: Contents
Contents ● Q2/23 highlights ● Group level development ● Business areas ● Financials and outlook ● Q&A 3
Slide 4: Highlights of Q2/23 – Record-high comparable operating profit
Highlights of Q2/23 – Record-high comparable operating profit driven by higher deliveries Orders received decreased by 28% ● Decline in all business areas compared to record-high comparison period Sales increased by 25% ● Service sales increased by 14% ● Eco portfolio increased by 26% Comparable ope
Slide 5: Orders received are back to pre-covid level…
Orders received are back to pre-covid level… Orders received MEUR -28% (y/y) -38% (y/y) -28% (y/y) -23% (y/y) Cargotec’s January-June half year report | 20 July 2023 5
Slide 6: …but order book remains clearly above historical average
…but order book remains clearly above historical average -10% (y/y) Order book MEUR +28% (y/y) -19% (y/y) -20% (y/y) *Kalmar excluding heavy cranes business which will be discontinued and divested Navis software business Cargotec’s January-June half year report | 20 July 2023 6
Slide 7: Strong development in sales and record comparable operating profit
Strong development in sales and record comparable operating profit Sales Comparable operating profit* MEUR MEUR x **) Including Corporate admin and support The comparable operating profit definition changed in 2023, Cargotec’s January-June half year report | 20 July 2023 7 figures in the comparison
Slide 8: Service orders and sales continued to grow
Service orders and sales continued to grow Service orders received +6% Service sales +14% ● Kalmar +6% ● Hiab +14% ● MacGregor +29% Service share 29% of total sales Cargotec’s January-June half year report | 20 July 2023 8
Slide 9: Eco portfolio continued to grow
Eco portfolio continued to grow Eco portfolio sales +26% ● Increase in climate solutions and in circular solutions ● Increase in all business areas Eco portfolio share 30% of Cargotec’s total sales Cargotec’s January-June half year report | 20 July 2023 9
Slide 10: Business areas
6 4 %, ce N i: a Business areas
Slide 11: Record comparable operating profit in Kalmar
• Margin expansion driven by higher deliveries Kalmar Q2/23 • New fully electric straddle Record comparable carrier introduced • Growing orders for electric operating profit in portfolio Kalmar • Some softening in demand, orders back to pre-covid level 11
Slide 12: Some slowness in customer decision making, orders back at pre-covid level
Some slowness in customer decision making, orders back at pre-covid level Orders received and order book MEUR Q2/23 Q2/22 Change MEUR Orders received 437 567 -23% Order book 1,281 1,600 -20% ● Decision process for larger project orders slowed down ● Service orders stable ● Single large order in comp
Slide 13: Robust execution of equipment and service delivery
Robust execution of equipment and service delivery Sales and Service sales MEUR Q2/23 Q2/22 Change MEUR Sales 552 428 29% Service sales 143 135 6% Service sales, % 26% 32% -600 bps ● Improved efficiency in supply chain management but volatility remains ● Stronger execution resulted in decreased lead
Slide 14: Margin expansion in Kalmar driven by higher deliveries
Margin expansion in Kalmar driven by higher deliveries Comparable operating profit MEUR Q2/23 Q2/22 Change MEUR Comparable operating 78 41 91% profit Comparable operating 14.2% 9.6% 460 bps profit margin ● Record level operating profit and margin ● Margin supported by deliveries of semi- finished pr
Slide 15: Excellent performance in the quarter
• Order intake declined Hiab Q2/23 despite demand activity remained on a good level Excellent • Sales improved both performance in the sequentially and year over year quarter • Operating profit improved as a result of sales growth 15
Slide 16: Order intake declined despite demand activity remaining on a good level
Order intake declined despite demand activity remaining on a good level Orders received and order book MEUR Q2/23 Q2/22 Change MEUR Orders received 375 523 -28% Order book 1,007 1,250 -19% ● Inflation, extended truck lead times and interest rates impacting orders received ● Order book remained stron
Slide 17: Hiab’s equipment and services sales improved both sequentially and year over year
Hiab’s equipment and services sales improved both sequentially and year over year Sales and Service sales MEUR Q2/23 Q2/22 Change MEUR Sales 485 404 20% Service sales 113 99 14% Service sales, % 23% 25% -200 bps ● Strong operational execution ● Recurring service sales increased ● Supply chain has im
Slide 18: Hiab’s operating profit improved as a result of sales growth
Hiab’s operating profit improved as a result of sales growth Comparable operating profit MEUR Q2/23 Q2/22 Change MEUR Comparable operating 81 62 31% profit Comparable operating 16.8% 15.4% 140 bps profit margin ● Sales and profitability improvements driven by higher volume ● Effectively managing inf
Slide 19: MacGregor Q2 – Comparable operating profit increased
MacGregor Q2 – Comparable operating profit increased to 10 MEUR Orders received decreased MEUR Q2/23 Q2/22 Change ● Increase in service business Orders received 187 301 -38% ● Decrease in merchant and offshore businesses Order book 953 746 28% Sales 164 127 29% Sales increased by 29% ● Service sales
Slide 20: Financials and outlook
Financials and outlook 20
Slide 21: Financial highlights
Financial highlights 3,242 90% 151 H1/23 comparable MEUR operating profit MEUR Strong increase compared Operating profit in order book to H1/22 Q2 362 14.7% Core businesses* MEUR comparable Eco portfolio sales operating profit in Q2 margin in Q2 .*Core businesses = Hiab + Kalmar excluding heavy port
Slide 22: Cash flow still impacted by increase in net working capital
Cash flow still impacted by increase in net working capital Cash flow from operations before financing items and taxes MEUR Cargotec’s January-June half year report | 20 July 2023 22
Slide 23: Strong balance sheet and balanced maturity profile
Strong balance sheet and balanced maturity profile Net debt & gearing Maturity profile, 30 June 2023 MEUR Interest-bearing net debt / EBITDA 1.1 Cargotec’s January-June half year report | 20 July 2023 23
Slide 24: Outlook for 2023 unchanged
Outlook for 2023 unchanged 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 inclu
Slide 25: Cargotec
Cy CARGOTEC
Slide 26: Appendix
Appendix 26
Slide 27: Market environment
GDP growth1, % Container throughput growth2, % Manufacturing output growth3, % Market environment Uncertainty going forward Global Global Global Long term contracting4 – Key driver for MacGregor 1,777 365 -7% +22% +19% +25% Merchant ships Historical average Offshore mobile units4 Historical average6
Slide 28: Key financial figures
Key financial figures Q2/23 Q2/22 Change Q1-Q2/23 Q1-Q2/23 Change Orders received, MEUR 999 1,390 -28% 2,058 2,525 -19% Order book, MEUR 3,242 3,596 -10% 3,242 3,596 -10% Sales, MEUR 1,200 959 25% 2,274 1,810 26% Comparable operating profit, MEUR 158 82 94% 271 142 90% Comparable operating profit, %