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Q3 2012 London road show – 5-6 November
CFO Eeva Sipilä
Strategy and structure
Nov 2012 3
Cargotec´s evolution
Nov 2012 4
MacGregor
Kalmar
Hiab
Preparing listing of MacGregor
More independent
businesses
Services integrated into
businesses
New role for group functions
Building shared
legal structure and regional footprint
Building shared
support functions
Development of supply footprint
MacGregor
Hiab
Kalmar
Industrial & Terminal
Marine
Centralised supply and sourcing organisation
Centralised
services development
Common frontline
organisation
Building one ERP
Marine
Terminals
Centralised support functions
Shared MAU’s
Common frontline
Common ERP
Common processes
Load Handling
2008 2013-
Nov 2012
Cargotec’s businesses
Share of total sales in 1-9/12
Services share of sales in 1-9/12
5
Geographical split of sales in 1-9/12
Order to delivery lead time
Solutions for maritime transportation and offshore industries.
Ship-to-shore and container handling solutions for ports and terminals
Solutions for industrial and on-road load handling
33%
42%
25%
16%
25%
28%
12-24 months
6-9 months
2-4 months
EMEA 23% APAC 73% AMER 4%
EMEA 42% APAC 22% AMER 36%
EMEA 55% APAC 13% AMER 32%
Separate listing of Marine in Asia
A separate listing of Marine business area provides an opportunity to accelerate growth and value creation of the business
The Board of Directors has decided to proceed with the preparations for a separate listing of Marine in Asia latest by second half of 2013 subject to market conditions
Cargotec will retain a majority stake in the listed subsidiary
Nov 2012 6
Service
Marine core is in merchant ships, offshore offers attractive growth opportunities
Bulk carrier
Naval ship
RoRo ship
Tanker
Transloader
Offshore cranes
Hatch covers
Cranes
RoRo equipment
Customers
Container ship
General cargo ship
Winches
OFS Subsea
OFS AHTS
OFS TUG
Mer
chan
t shi
ps
Offs
hore
sh
ips
X X X X X X X X X X X X X X X X X
X X X
X X X
X X
X X X X X X X X X X
Nov 2012 7
~80%
~20%
Nov 2012
Manufacturing Installation After Sales Service
Outsourced MacGregor
Sales & Marketing
MacGregor
Design & Engineering
MacGregor
Outsourced
MacGregor
Outsourced
Concept focused on design, engineering and service
Reasonable margins Focus on core competencies
Cash positive Low fixed cost
High flexibility
Marine’s business model – built-in flexibility
8
Outsourced
Product fit
Fleet performance
Customer performance
Terminals’ strategy 2011–2015
To make our customers businesses run more effectively and efficiently
Objective is to be the leading and most efficient box moving company
Focus on integrated automation solutions
Navis
Extensive R&D investment
Improve competitiveness of product offering
Grow services business
Nov 2012 9
Services Global service network
Rebuilding and refurbishing Service contracting
Terminal development
The most comprehensive offering for Terminals
Nov 2012
Systems & Automation Terminal operating systems
Automated equipment Automated terminals
Equipment Complete set of equipment for container and cargo handling
tasks
Systems & Automation
Terminal operating systems Automated equipment Automated terminals
Packaging, Integration & Operationalisation
10
Terminals’ short term strategic actions
Improve operational efficiency Organisation with clear P&L responsibilities
Reduction of fixed cost
Improve volume product competitiveness Transfer of production from Lidhult to
Poland EMEA network integration
Improve profitability of big projects Increased project management competence Rainbow-Cargotec joint venture in China for
production Development of way of working and tools Tighter integration of sales and delivery
Nov 2012 11
Load Handling’s strategy 2011–2015
Focus on customer needs
Target is to be the leading on-road load handling supplier
Profitability over sales growth
Product differentiation
Route to market
Presence in mature markets with focused approach in China, Brazil and Russia
Nov 2012 12
Load Handling’s short term strategic actions
Cost efficiency Outsourcing Sourcing footprint Product cost improvement Supply efficiency Investment in Poland
Frontline execution development
Offering development
Nov 2012 13
January-September financials
Nov 2012 14
Highlights of Q3
Order intake decreased 11% y-o-y to EUR 719 (811) million
Sales grew 5% y-o-y to EUR 794 (753) million
Operating profit margin was 4.9% Focus on improving profitability,
restructuring measures launched
Cash flow from operations positive totalling EUR 34.2 (6.4) million
New outlook guides for approximately 5% operating profit margin excluding non-recurring cost for 2012
Nov 2012 15
January–September key figures
Q3 12 Q3 11 Change Q1-Q3/12 Q1-Q3/11 Change 2011 Orders received, MEUR 719 811 -11% 2,348 2,391 -2% 3,233
Order book, MEUR 2,312 2,349 -2% 2,312 2,349 -2% 2,426
Sales, MEUR 794 753 5% 2,437 2,310 5% 3,139
Operating profit, MEUR* 39.0 54.4 -28% 117.7 159.1 -26% 207.0
Operating profit margin, %* 4.9 7.2 4.8 6.9 6.6
Cash flow from operations, MEUR 34.2 6.4 6.4 78.0 166.3
Interest-bearing net debt, MEUR 485 362 485 362 299
Earnings per share, EUR 0.41 0.58 1.31 1.86 2.42
Nov 2012 16
*excluding restructuring
Performance development
Nov 2012 17
811
719 753 794
7.2
4.9
0
1
2
3
4
5
6
7
8
Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12
Orders Sales EBIT%
1,000
800
600
400
200
0
MEUR %
EBIT% excluding restructuring
Marine Q3 – challenging market environment Profitability at healthy level
Low ship ordering reflected in demand for marine cargo handling equipment.
Demand for marine cargo handling equipment for offshore support vessels remained healthy.
Sales declined 16 percent from the comparison period.
Delivery postponements over the year-end
Services sales grew slightly
Nov 2012 18
246
143
297
251
14.8
10.3
0
2
4
6
8
10
12
14
16
0
100
200
300
400
Q3/11 Q4/11 Q1/12 Q2/12 Q3/12
Orders Sales EBIT%
MEUR %
Terminals Q3 – two major port equipment orders from Australia Demand for large projects and
automation solutions remained brisk.
Orders at the level of the comparison period
Sales grew 27% y-o-y.
Profitability was 3.6% Cost overruns on large deliveries Low relative share of services Investment in port automation
technology
Focus on profitability and project execution
Nov 2012 19
389 383
278
352
6.2
3.6
0
2
4
6
8
0
100
200
300
400
500
600
Q3/11 Q4/11 Q1/12 Q2/12 Q3/12
Orders Sales EBIT%
MEUR %
EBIT% excluding restructuring
Load Handling Q3 – profitability rebounded from Q2 Demand for load handling
equipment in Europe weakened following the general economic uncertainty, and remained strong in the US.
Orders grew 8% y-o-y.
Sales grew 7% y-o-y.
Profitability was 3.1% rebounding from Q2 as expected.
Focus on profitability
Nov 2012 20
177 192
178 191
1.9
3.1
0
1
2
3
4
0
50
100
150
200
250
300
Q3/11 Q4/11 Q1/12 Q2/12 Q3/12
Orders Sales EBIT%
MEUR %
EBIT% excluding restructuring
Cash flow from operations positive
Nov 2012 21
6 34
-50
0
50
100
150
200
250
300
350
2008 2009 2010 2011 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12
MEUR
Services sales grew 3% y-o-y
Nov 2012 22
183 188
2008 2009 2010 2011 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12
800
1,000
600
400
200
0
MEUR
Balanced geographical split in sales
Nov 2012 23
25 %
42 %
33 % 39%
36%
24%
Marine Terminals Load Handling Americas APAC EMEA
Equipment 84% (86) Services 16% (14)
Equipment 72% (72) Services 28% (28)
Equipment 75% (69) Services 25% (31)
Sales by reporting segment 1-9/2012, % Sales by geographical segment 1-9/2012, %
(41)
(40)
(20) (24)
(36)
(40)
Cargotec’s ongoing actions
Interim President and CEO
New more business-focused structure
Employee cooperation negotiations Could result in a reduction of around
245 man-years globally
Centralisation of reachstacker and empty container handler production from Lidhult, Sweden, to Stargard Szczecinski, Poland Could result in a reduction of around
130 employees
Business areas will be named after their industry leading brand names MacGregor, Kalmar and Hiab
Nov 2012 24
Outlook
Cargotec’s operating profit margin for 2012 is expected to be approximately 5 percent excluding non-recurring costs.
Sales are expected to grow from 2011.
Nov 2012 25
Appendices
Nov 2012 26
0
200 000
400 000
600 000
800 000
1 000 000
1 200 000
1 400 000
EMEA APAC AMERICAS
Units
2008 2009 2010 2011 2012 2013 2014 2015 2016
Source: IHS Global Insight Q2/2012
Truck sales GVW over 15 ton - Regions Sales growth GVW over 15 ton - Regions
Macro indicator trends
Nov 2012 27
-60 %
-40 %
-20 %
0 %
20 %
40 %
60 %
80 %
EMEA APAC AMERICAS
2008 2009 2010 2011 2012 2013 2014 2015 2016
Macro indicator trends
Nov 2012 28 Source: Oxford Economics Q3/2012
0 100 200 300 400 500 600 700 800 900
EMEA AMER APAC
Total Construction Output 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Billion EUR
90
95
100
105
110
115
-8
-6
-4
-2
0
2
4
6
EMEA: Construction output
INDEX CHANGE (%)
Annual change (%)
Index 2005 = 100
0
50
100
150
200
0
2
4
6
8
APAC: Construction Output
INDEX CHANGE (%)
Annual change (%)
Index 2005 = 100
0
20
40
60
80
100
120
140
-12 -10
-8 -6 -4 -2 0 2 4 6 8
10
AMER: Construction Output
INDEX CHANGE (%)
Annual change (%)
Index 2005 = 100
Macro indicator trends
Nov 2012 29
0
100 000
200 000
300 000
400 000
500 000
600 000
AMER EMEA APAC
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
-15,0 %
-10,0 %
-5,0 %
0,0 %
5,0 %
10,0 %
15,0 %
20,0 %
AMER EMEA APAC
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Drewry (Throughput TEU % change) Drewry (Throughput ’000 TEU units)
Source: Drewry Global Container Terminal Operators, Annual Report 2012
Ship contracting forecast
Nov 2012 30
Source: Clarkson Shipbuilding forecast 9/2012
Low gearing and strong liquidity 30 Sep 2012 Gearing 38.8%
Net debt MEUR 485
Liquidity MEUR 426 Cash and cash equivalents
MEUR 126 Unused and committed long-
term revolving credit facility of MEUR 300
Cargotec is well prepared financially for the coming years
Nov 2012 31
MEUR Repayment schedule of interest-bearing
liabilities
137
47 93
5 3
91
239
0
40
80
120
160
200
240
280
2012 2013 2014 2015 2016 2017 2018-
Services
Truck-mounted forklifts Demountables Loader cranes
Forestry cranes Tail lifts Stiff boom cranes
Hiab offering
Nov 2012 32
Key competition with Hiab offering
Nov 2012 33
Knuckle-boom Cranes Demountables Truck-mounted
Forklifts Forestry Cranes Tail Lifts Stiff boom
Cranes
X X X X X X
X
X X X
X X X X
X X X
X X X X X X X
X X
X
X X
X X
X X X X
X X
X X X
• Hiab • Palfinger • Hyva • Fassi • Effer • HMF • Unic • Tadano • National • Meiller • VDL • Stellar • Shimaywa • D’Hollandia • Bär • Dautel • Anteo • Maxon • Tommy Gate • Manitou • Terberg Kinglifter • Chrisman • Donkey • Kesla • Prentice
Terminal tractors Forklift trucks Reachstackers Straddle carriers
Ship-to-Shore cranes RTGs, RMGs Services Spreaders
Kalmar offering
Nov 2012 34
Key competition with Kalmar offering
Nov 2012 35
Ship-to- shore cranes
Mobile harbour cranes
RTG/RMG cranes
Straddle/ Shuttle carriers
Reach stackers
Fork lift trucks
Terminal tractors. AGVs
Services Spreaders
X X X X X X X X
X
X
X
X X
X X X X
X
X X X X
X X
X X
X
X X X X
X X X X X X X
X
X X X
X
X X X X X
X X
X
X
X X X X
• Kalmar • ZPMC • Konecranes • Terex/Gottwald • Sany • Liebherr • Mitsubishi • Mitsui • Kunz • TCM • CVS • Hyster Heavy • Taylor • Linde Heavy • Zoomlion • Tomac • Toyota • Sinotruk • Capacity • Terberg • Mafi • Stinis • RAM
X X
X
X
X
X X
ASC carriers
X X X X X X X X X X
Link spans
Ship cranes Securing Hatch covers
RoRo Services Bulk loaders
Offshore deck equipment
MacGregor offering
Nov 2012 36
Key competition with MacGregor offering
Nov 2012 37
• MacGregor • TTS • SMS (ex Seohae) • Iknow (ex Tsuji) • Kyoritsu • Nakata • IHI • Coops & Nieborg • Macor • Navalimpianti • Liebherr • Oriental Precision • Huisman • MHI • German Lashing • SEC • Taiyo • National Oilwell Varco • Rolls Royce • Aker Solutions (Pusnes) • Hatlapa • EMS-Tech • Seabulk • Oshima
Hatch covers
Deck cranes
Offshore winches
Lashing equipment Services
X X X X X X
X X
(X)
X
X X
X
X
X X X X
X
X X X
X X
X
X X X X X
X X
(X) (X)
(X)
X
X X
X X
(X)
RoRo equipment
X X
X (X) X X X
X X
Offshore ALH
X X X X X X
X X
Self unloaders
X
X X X