Q INTERIM REPORT

Transcription

1 Q INTERIM REPORT 31 October 2007 Pekka Lundmark, President and CEO Q

2 Q Market Review Market demand remained strong during the third quarter. Demand improved in all geographical regions and in almost all customer industries. Continued high investment activity in general manufacturing. Booming shipyard investments, particularly in the Asia-Pacific region. Port demand continued at a high level. High raw material prices supported activity in the mining, primary metals, and metal warehousing customer segments. The high oil price and energy shortages in many parts of the world resulted in investments in the power and petrochemicals industries. There was no major change in the demand from the paper and automotive industries, which remained at a low level. Q

3 Konecranes Q Highlights All-time high order intake; solid base for continued growth in 2008 All regions and business areas growing Very successful capacity ramp-up in Service and Standard Lifting Heavy Lifting had lower sales due to the timing of deliveries and bottlenecks in component & steel structure supply Higher volume and productivity improvement boosted Service and Standard Lifting profits Heavy Lifting result not satisfactory, but return on capital on a similar level as in Standard Lifting Guidance: Full year 2007 sales growth somewhat below 20 % Full year 2007 EBIT margin close to or slightly to exceed 9.5 % Q

4 Three Synergistic Business Areas With Leading Market Positions Service (Industrial & Port) Preventive maintenance Inspections Repairs Modernizations Spares Standard Lifting Chain Hoists Wire rope hoists Crane Components Industrial Cranes Heavy Lifting - Industrial process cranes - Container handling & other port equip. STS RTG & RMG Lift trucks Reachstackers Straddle Carriers Market Size Market share Position Open: > 3 BEUR ~ 18 % #1 Total: > 10 BEUR ~ 7 % > 4 BEUR ~ 15 % #1 ~7 BEUR ~2 BEUR ~12 % #1 ~5 BEUR ~6 % #4-6 Q

5 Q2/07 Q3/07 Q3 Orders Received 506 (403), + 26 % Q Q1/07 Q3/06 Q4/06 Q2/06 Q1/06 Q3/05 Q4/05 Q2/05 Q1/05 Q4/04 Q3/04 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04

6 Q2/07 Q3/ Q Q4/06 Q1/07 Q3/06 Q2/06 Q1/06 Rolling 12-Month Orders Received 1,769 (2006:1,392), + 27 % Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05

7 End-September Order Book 795 (End-September 06: 682), +17% SERVICE STANDARD LIFTING HEAVY LIFTING Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Q3/07 Q

8 Q1/07 Q2/07 Q3/07 Q3 Sales 424 (386), +10 % 500,0 450,0 400,0 350,0 300,0 250,0 200,0 150,0 100,0 50,0 0,0 Q Q3/06 Q4/06 Q2/06 Q1/06 Q4/05 Q3/05 Q2/05 Q1/05 Q4/04 Q3/04 Q2/04 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04

9 Q1/07 Q2/07 Q3/07 Operating Profit and Margin 45.5 (31.2), +46 %, Margin 10.7 (8.1)% Q Q4/06 EBIT EBIT Margin 12 % 10 % 8 % 6 % 4 % 2 % 0 % Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 Q3/06

10 Rolling 12M Sales and EBIT Margin Sales 1,687 (Q3/2006:1,318), +27 %, Margin 9.1 (Q3/2006:6.8)% LTM SALES LTM EBIT Margin % % % % Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Q3/07 6 % 5 % 4 % 3 % 2 % 1 % 0 % Q

11 Sales Split by Business Area, % Rolling 12 months R12M Standard Lifting Service Heavy Lifting Q

12 Sales by Market Area, % Rolling 12 months R12M EMEA Asia-Pacific Americas Q

13 Personnel from end SERVICE STANDARD LIFTING HEAVY LIFTING OTHER Q3/2007 Q

14 Sales by Industry Rolling 12-months, % of total sales General Manufacturing 22 % Petrochemical 4 % Steel & other warehousing 2 % Pulp and paper 5 % Power plants 4 % Resellers 14 % Automotive 3 % R12M OEM crane builders 6 % Transport, Shipping 5 % Shipyards 3 % Harbors 14 % 1 % Others 5 % Refuse Handling Construction 2 % Primary metals 10 % Aviation, Aerospace<1 % Q

15 Sales by Industry Rolling 12-months, % of total sales 30,0 % 25,0 % 20,0 % 15,0 % 10,0 % 5,0 % 0,0 % Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Q3/07 Pulp and Paper Steel & other warehousing General manufacturing Primary metals Harbours Resellers Transport & shipping industry Power plants & Refuse handling Q

16 SERVICE Q

17 Q4/06 Q1/07 Q2/07 Q3/07 Q3 Service Orders 139 (118), +18 % Q Q2/06 Q3/06 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04

18 Q4/06 Q1/07 Q2/07 Q3/07 Service Rolling 12M Orders 548 (407), + 36% Q Q2/06 Q3/06 Q4/05 Q1/06 Q3/05 Q1/05 Q2/05 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04

19 Service Contract Base 287 (259) thousand units Value 104 Units Number of Cranes Value Q3/ Q

20 Q1/07 Q2/07 Q3/07 Q3 Service Sales Sales 156 (137), +14% 180,0 160,0 140,0 120,0 100,0 80,0 60,0 40,0 20,0 0,0 Q Q3/06 Q4/06 Q2/06 Q1/06 Q4/05 Q3/05 Q2/05 Q1/05 Q4/04 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04

21 Q2/07 Q3/07 Q3 Service EBIT and Margin EBIT 21.3 (14.4), + 48 %, Margin 13.6 (10.5) % Q Q4/06 Q1/07 Q3/06 Q2/06 EBIT EBIT Margin 16 % 14 % 12 % 10 % 8 % 6 % 4 % 2 % 0 % Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06

22 Q3/07 Service Rolling 12M Sales and Operating Margin Sales 617 (475), + 30 %, Margin 11.7 (8.3) % Q Q1/07 Q2/07 Q4/06 LTM Sales LTM EBIT Margin 14 % 12 % 10 % 8 % 6 % 4 % 2 % 0 % Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 Q3/06

23 STANDARD LIFTING Q

24 Q1/07 Q2/07 Q3/07 Q3 Standard Lifting Orders 202 (157), +28 % Q Q3/06 Q4/06 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 Q1/05 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04

25 Q1/07 Q2/07 Q3/07 Standard Lifting Rolling 12-month Orders 735 (551), +33% Q Q4/06 Q2/06 Q3/06 Q4/05 Q1/06 Q3/05 Q1/05 Q2/05 Q4/04 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04

26 Q1/07 Q2/07 Q3/07 Q3 Standard Lifting Sales 178 (153), +16% 200,0 180,0 160,0 140,0 120,0 100,0 80,0 60,0 40,0 20,0 0,0 Q Q3/06 Q4/06 Q2/06 Q1/06 Q4/05 Q3/05 Q2/05 Q1/05 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04

27 Q3/07 Standard Lifting Rolling 12-month Sales and Operating Margin Sales 651 (507), + 28 %, Margin 13.2 (10.2) % LTM SALES LTM EBIT Margin % 12 % 10 % 8 % 6 % 4 % 2 % 0 % Q Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07

28 Q1/07 Q2/07 Q3/07 Q3 Standard Lifting EBIT Margin EBIT 28.0 (15.8), + 83 %, Margin 15.8 (10.0) % EBIT EBIT Margin % 16 % 14 % 12 % 10 % 8 % 6 % 4 % 2 % 0 % Q Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 Q3/06 Q4/06

29 HEAVY LIFTING Q

30 Q1/07 Q2/07 Q3/07 Q3 Heavy Lifting Orders 195 (151), + 29 % Q Q3/06 Q4/06 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04

31 Breakthrough for Konecranes Straddle Carriers in Germany In August, German container terminal and logistics company Eurogate Container Terminal Hamburg GmbH ordered ten straddle carriers. The straddle carriers will be delivered in February Eurogate Group is the largest terminal operator in Europe. This is Konecranes' first crane delivery to Eurogate, which is one of the biggest customers for straddle carriers with almost 300 units in its fleet Q

32 Over EUR 20 million orders from South Korean Shipyards Hyundai Samho Heavy Industries Samsung Heavy Industries Hanjin Heavy Industries & Construction Daehan Shipbuilding Ordered the design, project supervision and components for eight Goliath gantry cranes. Deliveries are scheduled for spring The rail span of a Goliath crane can be up to 216 meters and the lifting height up to 98 meters. Q

33 Konecranes wins large port crane orders in Russia In September and October cargo terminal OJSC Petrolesport (PLP) in St. Petersburg, Russia ordered: two ship-to-shore (STS) cranes six RTG (rubber tyred gantry) cranes. The cranes will be delivered in mid PLP is one of the largest stevedoring companies in the port of St. Petersburg. Cargo traffic is increasing in Russia, so PLP is increasing its terminal capacity in the St. Petersburg port. PLP s terminal has six Konecranes cranes in its fleet, one STS and five RTGs. Q

34 Konecranes wins its largest container crane orders to Russia In October, National Container Company (NCC) in Russia ordered five ship-to-shore (STS) cranes fourteen rubber tired gantry (RTG) cranes to three container terminals St. Petersburg. The total value of the orders is over EUR 40 million. Delivery will take place during 2008 and The equipment is part of NCC's terminal expansion and development plan, and will increase throughput capacity of the existing terminals and improve productivity. In 2006 and earlier in 2007, NCC ordered four STS cranes, two of which Konecranes will deliver at the end of 2007 and two in Q

35 Q1/07 Q2/07 Q3/07 Heavy Lifting Rolling 12M Orders 594 (529), + 12 % Q Q3/06 Q4/06 Q2/06 Q1/06 Q4/05 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05

36 Q1/07 Q2/07 Q3/07 Q3 Heavy Lifting Sales Sales 119 (125), -5.4% 180,0 160,0 140,0 120,0 100,0 80,0 60,0 40,0 20,0 0,0 Q Q3/06 Q4/06 Q2/06 Q1/06 Q4/05 Q3/05 Q2/05 Q1/05 Q4/04 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04

37 Q2/07 Q3/07 Q3 Heavy Lifting EBIT and Margin EBIT 4.5 (8.3), -46%, Margin 3.8 (6.6)% Q Q4/06 Q1/07 Q3/06 Q2/06 EBIT EBIT Margin 14 % 12 % 10 % 8 % 6 % 4 % 2 % 0 % Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06

38 Q2/07 Q3/07 Heavy Lifting Rolling 12M Sales and Operating Margin Sales 524 (440), +19%, Margin 6.2 (6.2)% 600 LTM SALES LTM EBIT Margin % 8 % 7 % 6 % 5 % 4 % 3 % 2 % 1 % 0 % Q Q1/07 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 Q3/06 Q4/06

39 Heavy Lifting EBIT and Margin HEAVY LIFTING SPE EBIT % EBIT EBIT Margin % 16 % 14 % 12 % 10 % 8 % 6 % 4 % 2 % 0 % Q

40 GROUP FINANCIALS Teo Ottola, CFO Q

41 R12M Net Working Capital Percent of Sales 20 % 18 % 16 % 14 % 12 % 15,4 % 18,3 % 15,8 % 15,1 % 14,8 % 14,4 % 12,8 % 10 % 8 % 6 % 4 % 2 % 0 % Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Q3/07 Q

42 Gearing 120 % 100 % 102,1 % 80 % 79,3 % 75,8 % 60 % 57,3 % 65,0 % 40 % 39,3 % 20 % 22,4 % 0 % Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Q3/07 Q

43 Return on Capital Employed ROCE % ,0 29,5 17,8 17,2 13,7 10, R12M Q

44 Return on Equity ROE % ,5 36,5 14,2 16,6 12,5 7, R12M Q

45 Key figures Q Q % Change Sales Operating Income (EBIT) Income before taxes Net Income Cash flow from operations before financing and taxes Cash flow per share before financing and tax Net interest bearing debt Net gearing (%) Solidity (%) Return on capital employed (%) R12M Return on equity (%) R12M Equity per share (EUR) Capex(Excluding aquisitions Personnel at end of period 8,284 7, Employees Personnel on average (Jan-Sept) 7,905 6,687 +1,218 Employees Q

46 Statement of income Sales Q Q Other operating income Depreciation and impairments Other operating expenses Operating Profit Share of result of associated companies and joint ventures Interests, net Other financial income and expenses Income before taxes Taxes Net income for the period , , Q

47 Balance sheet Q Q Q Q Non-current assets Equity Inventories Non-current liabilities Other current assets Provisions Current liabilities Total assets Total shareholders equity and liabilities Q

48 Cash flow statement Operating income Depreciation and impairments Profits and losses on sale of fixed assets Other non-cash items Operating income before change in net working capital Change in net working capital Cash flow from operations before financing items and taxes Financing items and taxes Net cash flow from operating activities Net cash used in investing activities Cash flow before financing activities Translation difference in cash Dividends paid Change in interest bearing debt Proceeds from share subscriptions Change of cash and cash equivalents , Q

49 Cash Flow From Operations Before Financing Items and Taxes 126, , ,3 66, , ,2 16, /06 1-9/07 Q

50 Cash flow per share before financing items and taxes EUR 3 2 2,0 2,1 1 1,1 1,2 1, ,4 0, /06 1-9/07 Q

51 Contact information Pekka Lundmark, President and CEO tel (0) Teo Ottola, Chief Financial Officer tel.+358 (0) Paul Lönnfors, Investor Relations Manager tel.+358 (0) Q

52 NOT JUST LIFTING THINGS, BUT ENTIRE BUSINESSES Q