Slide 1: Growth continued in sales and profitability
26 October 2023 • Delayed decision making impacted orders received Growth continued • Actions planned to target in sales and 50 MEUR cost savings profitability • Planned separation of Kalmar and Hiab Cargotec’s Interim Report January–September 2023 progressing according to plan, Pekka Ala-Pietilä no
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 ● Q3/23 highlights ● Group level development ● Business areas ● Financials and outlook ● Q&A 3
Slide 4: Highlights of Q3/23 – Comparable operating profit increased in all business areas
Highlights of Q3/23 – Comparable operating profit increased in all business areas Orders received decreased by 20% ● Decline in all business areas Sales increased by 6% ● Service sales increased by 3% ● Eco portfolio increased by 13% Comparable operating profit increased by 48% ● Kalmar +21 MEUR ● H
Slide 5: Orders received are back to pre-covid level…
Orders received are back to pre-covid level… Orders received MEUR -20% (y/y) -16% (y/y) -27% (y/y) -17% (y/y) Cargotec’s January–September interim report | 26 October 2023 5
Slide 6: …but order book remains above historical average
…but order book remains above historical average -18% (y/y) Order book MEUR +15% (y/y) -31% (y/y) -25% (y/y) *Kalmar excluding heavy cranes business which will be discontinued and divested Navis software business Cargotec’s January–September interim report | 26 October 2023 6
Slide 7: Comparable operating profit increased in all business areas
Comparable operating profit increased in all business areas Sales Comparable operating profit* MEUR MEUR x **) Including corporate admin and support The comparable operating profit definition changed in 2023, Cargotec’s January–September interim report | 26 October 2023 7 figures in the comparison p
Slide 8: Service sales continued to grow
Service sales continued to grow Service orders received -4% Service sales +3% ● Kalmar -4% ● Hiab +7% ● MacGregor +12% Service share 30% of total sales Cargotec’s January–September interim report | 26 October 2023 8
Slide 9: Eco portfolio continued to grow faster than conventional sales
Eco portfolio continued to grow faster than conventional sales Eco portfolio sales +13% ● Increase in climate solutions and in circular solutions ● Increase in all business areas Eco portfolio share 33% of Cargotec’s total sales Q2/23 Eco portfolio sales has been revised Cargotec’s January–September
Slide 10: Safeguarding our profitability and emerging stronger
Safeguarding our profitability and emerging 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 growth Safeguard profitability Above 10% compar
Slide 11: In parallel with the planned new cost savings, we are executing MacGregor turnaround
In parallel with the planned new cost savings, we are executing MacGregor turnaround Planned 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
Slide 12: Business areas
Business areas 12
Slide 13: Hiab Q3/23: Continued strong execution
• Delayed decision making Hiab Q3/23 impacted order intake • Equipment and service Continued strong sales improved execution • Operating profit improved as a result of sales growth 13
Slide 14: Highlights of new solutions launched in Q3
Highlights of new solutions launched in Q3 HiSkill Virtual operator training simulator launched in the US Cargotec’s January–September interim report | 26 October 2023 14
Slide 15: Typical seasonality in order intake combined with some continued delays in decision making
Typical seasonality in order intake combined with some continued delays in decision making Orders received and order book MEUR Q3/23 Q3/22 Change MEUR Orders received 311 425 -27% Order book 900 1,301 -31% ● Inflation, extended truck lead times and interest rates impacting orders received ● Order bo
Slide 16: Hiab's equipment and services sales improved
Hiab’s equipment and services sales improved Sales and Service sales MEUR Q3/23 Q3/22 Change MEUR Sales 420 378 11% Service sales 113 106 7% Service sales, % 27% 28% -100 bps ● Strong operational execution ● Supply chain has improved but component supply remains constrained ● Service sales continued
Slide 17: 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 Q3/23 Q3/22 Change MEUR Comparable operating 62 50 24% profit Comparable operating 14.7% 13.1% 160 bps profit margin ● Profit improved due to both higher volumes and margin improvement ● Effectively managin
Slide 18: Kalmar Q3/23: Continued high profitability in Kalmar
• Mixed demand picture, slower market activity Kalmar Q3/23 started gradually to impact sales Continued high • Successful management of profitability in inflationary pressures Kalmar • Lonestar electric terminal tractor acquisition completed 18
Slide 19: Mixed demand picture
Mixed demand picture Orders received and order book MEUR Q3/23 Q3/22 Change MEUR Orders received 392 470 -17% Order book 1,172 1,569 -25% ● Destocking in distribution customer segment ● Slow decision making in orders of larger equipment ● Continued good demand in mobile equipment used in industries
Slide 20: Slower market activity started gradually to impact sales
Slower market activity started gradually to impact sales Sales and Service sales MEUR Q3/23 Q3/22 Change MEUR Sales 503 526 -4% Service sales 137 142 -4% Service sales, % 27% 27% 0 bps ● Lower order intake gradually visible in sales ● Destocking impacting spare part sales Cargotec’s January–Septembe
Slide 21: Improved profitability driven by successful management of inflationary pressures
Improved profitability driven by successful management of inflationary pressures Comparable operating profit MEUR Q3/23 Q3/22 Change MEUR Comparable operating 71 51 41% profit Comparable operating 14.1% 9.6% 450 bps profit margin ● Favorable sales mix ● Successful management of inflationary pressure
Slide 22: Highlights of new solutions launched in Q3
Highlights of new solutions launched in Q3 ● Kalmar has acquired the product rights of the electric terminal tractor product line from Lonestar Specialty Vehicles ● LSV will transfer the immaterial assets for Kalmar and act as Kalmar’s contract manufacturing partner ● The new product line, named Kal
Slide 23: MacGregor Q3 – MacGregor turnaround progressing
MacGregor Q3 – MacGregor turnaround progressing Orders received decreased ● Good demand in merchant MEUR Q3/23 Q3/22 Change and services Orders received 211 252 -16% ● Selective order intake in Order book 993 861 15% offshore Sales 179 137 31% Sales increased by 31% Service sales, % 47% 55% -800 bps
Slide 24: Financials and outlook
Financials and outlook CARGOTEC
Slide 25: Financial highlights
Financial highlights 3,065 184 14.8% MEUR MEUR ROCE Strong Cash flow in Q3 Q3 order book (last 12 months) 367 13.8% Core businesses* MEUR comparable Eco portfolio sales operating profit in Q3 margin in Q3 .*Core businesses = Hiab + Kalmar excluding heavy port cranes Cargotec’s January–September inte
Slide 26: Strong cash flow in Q3 driven by good profitability and reduction in accounts receivable
Strong cash flow in Q3 driven by good profitability and reduction in accounts receivable Cash flow from operations before financing items and taxes MEUR Cargotec’s January–September interim report | 26 October 2023 26
Slide 27: Strong balance sheet and balanced maturity profile
Strong balance sheet and balanced maturity profile Net debt & gearing Maturity profile, 30 September 2023 MEUR Interest-bearing net debt / EBITDA 0.7 Cargotec’s January–September interim report | 26 October 2023 27
Slide 28: 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 29: Cargotec
Cy CARGOTEC
Slide 30: Appendix
BUILT TO PERFORM i — CARGOTEC
Slide 31: 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 -10% +2% -18% +26% Merchant ships Historical average Offshore mobile units4 Historical average6
Slide 32: Key financial figures
Key financial figures Q3/23 Q3/22 Change Q1-Q3/23 Q1-Q3/23 Change Orders received, MEUR 914 1,147 -20% 2,972 3,672 -19% Order book, MEUR 3,065 3,732 -18% 3,065 3,732 -18% Sales, MEUR 1,102 1,041 6% 3,375 2,850 18% Comparable operating profit, MEUR 131 89 48% 402 232 74% Comparable operating profit,