q3 2012 interim report - konecranes...• trading code: kcr1v • 1-9/12 average daily trading...

© 2012 Konecranes Plc. All rights reserved. 1

Q3 2012INTERIM REPORT

October 24, 2012Pekka Lundmark, President and CEOTeo Ottola, CFO

© 2012 Konecranes Plc. All rights reserved.

HIGHLIGHTS OF Q3/12

• Positives– Service Y/Y order growth– Service profitability continued to improve– Group operating leverage improving

• Negatives– Equipment orders slightly lower Y/Y, mainly due to Port Cranes– New equipment market softening, China remained weak– Operating leverage remained modest in Equipment

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CAPACITY UTILIZATION: EU27 AND USA

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SOURCES: Eurostat (latest data point Q3/12), Federal Reserve Bank of St. Louis (September 2012)


CONTAINER TRAFFIC

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SOURCES: Drewry Container Port Insight (latest data point July 2012)

Annual container handling volume Monthly container handling volume


MARKET OUTLOOK AND FINANCIAL GUIDANCE AS OF OCTOBER 24, 2012

Market outlook

• Macroeconomic uncertainties have increased and there are more signs of a weakening global demand due to the continuing crisis within the Eurozone and slower economic growth in some emerging markets.

• This is taking its toll on new inquiries.

Financial guidance

• Based on the order book, we forecast year 2012 sales and operating profit to be higher than in 2011.

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0

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ORDERS SALESMEUR

GROUP ORDERS AND NET SALESQ3 Orders: 458.0 (458.5) MEUR, -0.1% | Net sales: 529.8 (450.9) MEUR, +17.5%

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GROUP ORDER BOOKQ3 Order book: 1,085.1 (1,040.1) MEUR, +4.3%

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GROUP EBIT & MARGINQ3 EBIT: 37.0 (26.0) MEUR, +42.2% | MARGIN: 7.0% (5.8%)

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EBIT MARGIN


GROUP ORDERS RECEIVED9M Orders: 1,546.3 (1,422.2) MEUR, +8.7%

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2005 2006 2007 2008 2009 2010 2011 1-9/11 1-9/12

MEUR


GROUP NET SALES9M Net sales: 1,565.1 (1,298.2) MEUR, +20.6%

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2005 2006 2007 2008 2009 2010 2011 1-9/11 1-9/12

MEUR


GROUP EBIT & MARGIN9M EBIT: 95.7 (69.7) MEUR, +37.4% | MARGIN: 6.1% (5.4%)

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2005 2006 2007 2008 2009 2010 2011 1-9/11 1-9/12

EBIT MARGINMEUR


EMEA AME APACSERVICE EQUIPMENT

SALES SPLIT BY BUSINESS AREA & REGION (R12M)

12

61% 39%

20%

32%48%

R12M2,163 MEUR

(FY 2011 1,896)

R12M2,163 MEUR

(FY 2011 1,896)

(50)(29)

(21)

(60) (40)

© 2012 Konecranes Plc. All rights reserved. 13

SERVICE


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SERVICE ORDERS AND NET SALESQ3 Orders: 182.4 (157.8) MEUR +15.6% | Sales: 218.9 (196.2) MEUR +11.6%

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• New orders grew in the Americas and APAC while they remained stable in the EMEA• Order intake growth was particularly strong in Crane Service and Parts


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EBIT MARGINMEUR

SERVICE EBIT & MARGINQ3 EBIT: 20.8 (13.0) MEUR, +59.4% | MARGIN: 9.5% (6.6%)

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• EBIT improved due to higher volume and restructuring actions executed in Q1/12• Operating leverage 34% Y/Y in Q3/12 vs. 18% Y/Y in Q2/12


SERVICE CONTRACT BASEQ3 CB: 423 (394) thousand units, +7.3% | Annual value 182 (158) MEUR, +15.6% Y/Y

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2003 2004 2005 2006 2007 2008 2009 2010 2011 Q3/12

NUMBER OF EQUIPMENT VALUEUNITS MEUR

• 1/3 of Y/Y change in contract base value explained by currencies


SERVICE ORDER BOOKQ3 Order book: 154.9 (136.5) MEUR, +13.5%

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EQUIPMENT

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ORDERS SALESMEUR

EQUIPMENT ORDERS AND NET SALESQ3 Orders: 303.2 (315.9) MEUR, -4.0% | Net sales: 341.6 (277.6) MEUR, +23.1%

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• Orders received rose in the Americas, but fell in EMEA and APAC• The development of Lift Trucks had the most positive outcome, whereas orders fell the

most in Port Cranes


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EBIT MARGINMEUR

• EBIT grew due to higher volumes• Sales mix and higher fixed costs had a negative impact on the EBIT margin

EQUIPMENT EBIT & MARGINQ3 EBIT: 21.9 (18.3) MEUR, +19.9% | MARGIN: 6.4% (6.6%)

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EQUIPMENT ORDER BOOKQ3 Order book: 930.2 (903.6) MEUR, +2.9%

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BALANCE SHEET AND CASH FLOW

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0 %

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MEURNWC, MEUR % OF R12M SALES

NET WORKING CAPITALQ3 NWC: 341.4 (287.6) MEUR | 15.8% (16.3%) of R12M sales

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* Q1/12 excl. dividend liability of EUR 57 million** Q1/11 excl. dividend liability of EUR 60 million***Q1/10 excl. dividend liability of EUR 53 million


6.9

-30.4

2.316.6

179.1

70.2

181.8

-7.5

-146.5-133.9

26.2

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2003 2004 2005 2006 2007 2008 2009 2010 2011 9M/11 9M/12

MEURMEUR

CASH FLOW BEFORE FINANCING ACTIVITIES

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5.1 MEUR capex on acquisitionsin 9M/12


-20 %

-10 %

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-150-100

-500

50100150200250300350400450500

MEUREQUITY NET DEBT GEARING

GEARINGQ3 Equity: 448.3 (405.2) MEUR | Net debt: 250.5 (203.3) MEUR | Gearing: 55.9% (50.2%)

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RETURN ON CAPITAL EMPLOYED

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*) The 2007 ROCE including capital gain was 50.4%

10.813.7

17.2

29.5

46.2*

56.3

19.3

24.2

17.1 18.5

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2003 2004 2005 2006 2007 2008 2009 2010 2011 R12M

ROCE %


APPENDIXES

27


STATEMENT OF INCOME

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MEUR 9M 2012 9M 2011 % Change

Sales 1,565.1 1,298.2 20.6

Other operating income 1.6 2.2

Depreciation and impairments -29.9 -27.3

Other operating expenses -1,441.0 -1,203.4

Operating profit 95.7 69.7 37.4

Share of associates’ and joint ventures’ result

2.3 2.7

Financial income and expenses -7.8 -12.2

Profit before taxes 90.3 60.1 50.2

Taxes -27.9 -18.2

Net profit for the period 62.4 42.0 48.7


BALANCE SHEET

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MEURSeptember 30,

2012September 30,

2011MEUR

September 30, 2012

September 30, 2011

Non-current assets

473.0 425.6 Equity 448.3 405.2

Inventories 413.0 357.9Non-current

liabilities294.2 177.1

Other current assets

634.4 510.5 Provisions 48.3 45.4

Cash and cash equivalents

111.8 113.5 Current liabilities

841.4 715.1

Total assets 1,632.2 1,407.5Total equity and

liabilities1,632.2 1,407.5


CASH FLOW STATEMENT

30

MEUR 9M 2012 9M 2011

Operating income before change in net working capital 127.6 98.6

Change in net working capital -9.5 -87.8

Financing items and taxes -43.9 -41.9

Net cash from operating activities 74.3 -31.2

Cash flow from investing activities -48.1 -102.7

Cash flow before financing activities 26.2 -133.9

Proceeds from options exercised and share issues 0.6 24.5

Purchase of treasury shares 0.0 -43.3

Change in interest-bearing debt 68.3 230.3

Dividends paid to equity holders of the payment -57.2 -60.0

Net cash used in financing activities 11.8 151.5

Translation differences in cash 1.2 -2.4

Change of cash and cash equivalents 39.1 15.1

Cash and cash equivalents at beginning of period 72.7 98.5

Cash and cash equivalents at end of period 111.8 113.5

Change of cash and cash equivalents 39.1 15.1


KEY FIGURES

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MEUR 9M 2012 9M 2011 % Change

Earnings per share, basic, EUR 1.08 0.71 51.9

Earnings per share, diluted, EUR 1.07 0.70 52.6

Return on capital employed %, R12M 18.5 19.1

Return on equity %, R12M 20.0 18.0

Equity per share, EUR 7.72 7.06 9.3

Current ratio 1.3 1.2

Gearing (%) 55.9 50.2

Solidity (%) 33.3 32.3

EBITDA, MEUR 125.7 97.0 29.6

Investments total (excl. acquisitions), MEUR 23.5 22.5 4.7

Interest-bearing net debt, MEUR 250.5 203.3 23.2

Net working capital, MEUR 341.4 287.6 18.7

Personnel at end of period 12,107 11,427 6.0

Personnel on average during the period 11,860 10,834 9.5

Average number of shares outstanding, basic 57,216,307 59,582,689 -4.0

Average number of shares outstanding, diluted 57,510,240 60,162,574 -4.4

Number of shares outstanding 57,253,721 57,198,971 0.1


THE LARGEST SHAREHOLDERS

32

Trading information• Listing: NASDAX OMX Helsinki• Date of listing: March 27, 1996• Segment: Large Cap• Sector: Industrials• Trading code: KCR1V• 1-9/12 average daily trading volume 535,392 shares,

EUR 11.1 million

Market cap EUR 1,292 million excludingtreasury sharesLargest shareholders on September 30,

2012Number of

shares% of all shares

1 HTT KCR Holding Oy Ab 6,870,568 10.86

2 Varma Mutual Pension Insurance Company 2,940,275 4.65

3 Gustavson Stig, Chairman of the Board of Konecranes and family *)

2,069,778 3.27

4 Ilmarinen Mutual Pension Insurance Company 1,998,671 3.16

5 The State Pension Fund 1,018,000 1.61

6 Nordea Investment Funds 852,398 1.35

7 Sigrid Juselius Foundation 638,500 1.01

8 Fondita Funds 635,000 1.00

9 Folkhälsan Samfundet I Svenska 535,600 0.85

10 Danske Capital Funds 478,199 0.76

Konecranes Plc’s treasury shares 6,018,621 9.51

Nominee registered shares 20,912,387 33.05

Other shareholders 18,304,345 28.92

Total number of shares 63,272,342 100.00

*) Konecranes Plc has on December 28, 2011 received information according to which the Chairman of the company’s Board of Directors Stig Gustavson has donated all of his shares in Konecranes Plc to his near relatives retaining himself for life the voting rights and right to dividend attached to the donated shares. The donation encompasses in total 2,069,778 shares which corresponds to approximately 3.27 percent of all of the company’s shares and voting rights.

49.0%

17.2%

0.8%

33.1%

Finnish companies and organizations

Finnish households

Foreign owners

Nominee registered


THANK YOU!

33


CONTACT INFORMATION

34

Pekka Lundmark, President and CEOTel. +358 (0)20 427 2000 [email protected]

Teo Ottola, Chief Financial OfficerTel.+358 (0)20 427 2040 [email protected]

Miikka Kinnunen, Director, Investor RelationsTel. +358 (0)20 427 [email protected]

Anna-Mari Kautto, Assistant, Investor RelationsTel. +358 (0)20 427 [email protected]

www.konecranes.com

mailto:[email protected]




http://www.konecranes.com/

q3 2012 interim report - konecranes...• trading code: kcr1v • 1-9/12 average daily trading...

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