Q1 2010 Interim Report - konecranes.com€¦ · April 28, 2010. Pekka Lundmark, President and CEO . Teo Ottola, CFO. Q1 2010 ... Q1 2010 Interim Report. Highlights of Q1/10 Positives

April 28, 2010Pekka Lundmark, President and CEOTeo Ottola, CFO

Q1 2010Interim Report

Highlights of Q1/10

Positives• Improving macro indicators• Service showing signs of a recovery• Successful cost savings actions supported result• Alliance with Kito

Negatives• Continued low new equipment demand• Intense price competition• Profit burdened by low deliveries

2© 2010 Konecranes Plc. All rights reserved.

Capacity utilization: EU27 and USA


SOURCES: Eurostat, Federal Reserve Bank of St. Louis

Container traffic


SOURCES: Drewry Container Annual 2009/2010, Drewry Freight Shipper Inshight

Annual port handling volume Monthly port handling volume

• Founded in 1932 and listed on the Tokyo Stock Exchange in 2007

• Serves customers mainly in Japan, North America and China

• Clear market leader for manual and electric chain hoists in Japan

• For the year ended March 31, 2009, Kito’s net sales amounted to EUR 227 million and operating profit to EUR 16.5 million

• Kito has approximately 1,500 employees and factories in Japan, China and the Philippines

Facts about Kito Corporation

© 2010 Konecranes Plc. All rights reserved. 5

• Purchase of 22% of shares for EUR 27 million

• Konecranes will sell Kito manual products; Kito will sell wire rope hoist made by Konecranes

• Enhances Konecranes’ presence in East Asia and North America

• Possibilities to expand co-operation

• Both companies will retain own identity and independence

Strategic alliance with Kito Corporation


Q1/2010 Group orders and net sales


Orders: 320.6 (369.7) MEUR, -13.3% | Net sales: 306.3 (442.1) MEUR, -30.7%

Sales split by business area & region, R12M


R12M1,535 MEUR

(FY 2009 1,671)

16%(16%)

56%(56%)

28%(29%)

61%(63%)

39%(37%)

R12M1,535 MEUR

(FY 2009 1,671)

Order book at end of the period 641.3 (792.0) MEUR, -19.0%

Group order book


Q1/2010 Group EBIT & margin


EBIT: 11.6 (36.8) MEUR | Margin: 3.8% (8.3%)

Return on capital employed


*The 2007 ROCE including capital gain was 50.4%

ROCE %

24.3

17.8

10.813.7

17.2

29.5

46.2 *

56.3

19.3

14.6

Future prospects as of April 28, 2010


• 2010 guidance for sales and operating profit reiterated, Services’ demand outlook changed

• Market uncertainty to continue• Demand outlook for maintenance

services has improved as a result of higher capacity utilization within customer industries

• Demand for new equipment to remain on a low level

– Price competition to remain• Order book lower than a year ago

Sales in 2010 forecast to be lower than in 2009Operating profit in 2010 expected to be lower than in 2009 before restructuring costs

Service

Orders: 139.8 (125.6) MEUR, 11.3% | Net sales: 148.0 (169.7) MEUR, -12.8%

Q1/2010 Service: orders & net sales

• New orders grew in all geographic regions• Higher orders across several business units with particular

strength in Modernization due to large single orders


EBIT: 9.8 (15.7) MEUR | Margin: 6.6% (9.3%)

Q1/2010 Service: EBIT & margin


• Profitability declined due to lower volumes

Q1/2010 Service: contract base367 (366) thousand units, 0.3% | Annual value 132 (127) MEUR, 3.4%


Service: order book87.7 (109.1) MEUR, -19.6%


Equipment

Q1/2010 Equipment: orders & net sales

• Orders decreased both in EMEA and the Americas, but grew in APAC due to strong growth in China

• Orders declined both Y/Y and Q/Q due to lack of large single block orders for port equipment particularly


Orders: 196.2 (263.9) MEUR, -25.7% | Net sales: 185.8 (304.6) MEUR, -39.0%

Q1/2010 Equipment: EBIT & margin

• Profitability declined due to declining volumes• Negative profit impact could not be fully offset by cost savings actions


EBIT: 6.0 (26.8) MEUR, -77.4% | Margin: 3.3% (8.8%)

Equipment: order bookOrder book: 558.2 (701.9) MEUR, -20.5%


Balance Sheet and Cash Flow

Q1/2010 Net working capital 102.5 (267.0) MEUR | 6.7% (12.7%) of LTM sales | 156.0 MEUR | 10.2% of LTM sales incl. dividends


Cash flow before financing activities


*Including capital gain

*

30.9 MEUR capexon acquisitions and investments in associated companies

Q1/2010 Gearing


Equity: 373.7 (379.7) MEUR | Net debt: -46.6 (37.8) MEUR | Gearing; -12.4% (10.0%)

Appendixes

Statement of income

Q1 2010 MEUR

Q1 2009MEUR % Change

Sales 306.3 442.1 -30.7

Other operating income 0.8 0.7

Depreciation and impairments -7.3 -6.8

Other operating expenses -288.2 -399.2

Operating profit 11.6 36.8 -68.6

Share of associates’ and joint ventures’ result 0.1 0.0

Financial income and expenses 0.7 -1.5

Income before taxes 12.4 35.4 -64.9

Taxes -3.7 -10.1

Net income for the period 8.8 25.3 -65.4


Balance sheet

MEUR Q1 2010 Q1 2009 Q1 2010 Q1 2009

Non-current assets 324.9 241.2 Equity 373.7 379.7

Inventories 271.1 356.7 Non-current liabilities 111.8 180.4

Other current assets 395.5 468.4 Provisions 58.6 46.9

Cash and cash equivalents 121.1 116.0 Current liabilities 568.6 575.3

Total assets 1 112.7 1 182.2 Total equity and liabilities 1 112.7 1 182.2


Cash flow statement

MEUR Q1 2010 Q1 2009

Operating income before change in net working capital 19.3 43.9

Change in net working capital 10.8 9.5

Financing items and taxes -29.6 -20.8

Net cash from operating activities 0.5 32.6

Net cash used in investing activities -35.0 -5.0

Cash flow before financing activities -34.5 27.6

Proceeds from options exercised and share issues 0.9 0.7

Change of interest-bearing debt 10.0 38.8

Dividends paid to equity holders of the parent 0.0 -53.3

Net cash used in financing activities 10.9 -13.8

Translation differences in cash 7.1 1.3

Change of cash and cash equivalents -16.5 15.1

Cash and cash equivalents at beginning of period 137.5 100.9

Cash and cash equivalents at end of period 121.1 116.0

Change of cash and cash equivalents -16.5 15.1


Key figures

Q1 2010MEUR

Q1 2009MEUR

% Change

Sales 306.3 442.1 -30.7

Operating profit (EBIT), including restructuring costs 11.6 36.8 -68.6

Profit before taxes 12.4 35.4 -64.9

Net profit for the period 8.8 25.3 -65.4

Cash flow from operations before financing items and taxes 30.1 53.4

Cash flow from operating activities per share (EUR) 0.01 0.55

Interest bearing net debt -46.6 37.8 -223.2

Gearing (%) -12.4 10.0

Solidity (%) 40.2 38.5

Return on capital employed (%), (R12M) 14.6 50.4 -71.0

Return on equity (%), (R12M) 12.2 49.4 -75.3

Equity per share (EUR) 6.26 6.38 -1.9

Investments total (excl. acquisitions) 4.2 6.0 -29.5

Personnel at end of period 9 562 9 866 -3,1

Personnel on average during the period 9 672 9 885 -2,2


Finnish companies and organizationsFinnish householdsForeign ownersNominee registered

Share details and ownership information

Trading information• Listing: NASDAX OMX Helsinki• Date of listing: March 27, 1996• Segment: Large Cap• Sector: Industrials• Trading code: KCR1V• Q1/10 average daily trading volume 505,322 shares, EUR 10.8 million

Largest shareholders on March 31, 2010 Nr of shares

% of all shares

1 Htt 2 Holding Ltd 3,694,500 5.96%

2 Gustavson Stig, Chairman of the Board of Konecranes

2,036,772 3.29%

3 Varma Mutual Pension Insurance Company 2,005,275 3.24%

4 Nordstjernan Ab 1,380,024 2.23%

5 Nordea Nordenfonden 1,109,591 1.79%

6 Ilmarinen Mutual Pension Insurance Company 1,076,978 1.74%

7 Sigrid Juselius Foundation 601,500 0.97%

8 Mandatum Life Insurance Company Ltd. 558,695 0,90%

9 The State Pension Fund 550,000 0.89%

10 Folkhälsan non-governmental organization svenska Finland rf

535,600 0.86%

Konecranes’ treasury shares 2,542,600 4.10%

Nominee registered shares 29,834,749 48.15%

Other shareholders 13,302,676 21.47%

Total number of shares 61,872,920 100,00%

Market cap > EUR 1 bn


48% 32%

14%

7%

Contact information

• 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]




Thank you!

Q1 2010 Interim Report - konecranes.com€¦ · April 28, 2010. Pekka Lundmark, President and CEO . Teo Ottola, CFO. Q1 2010 ... Q1 2010 Interim Report. Highlights of Q1/10 Positives

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