2007 financial results - konecranes italia · konecranes is almost twice the size of its closest...

© 2008 Konecranes Plc. All rights reserved.

2007 FINANCIAL RESULTSFebruary 8, 2008Pekka Lundmark, President and CEOTeo Ottola, CFO

© 2008 Konecranes Plc. All rights reserved. Results FY2007 2

2008 Group Outlook

• Konecranes targets double-digit sales growth in 2008

• We target sales growth for all three Business Areas in 2008

• There continues to be potential for a further improvement in

operating margin


Favorable 2008 Outlook, because…

1. Strong year-end order book (up 33 % y-o-y)

2. High order and inquiry activity in January 2008

3. Services is a genuine growth market, and even includes certain countercyclical elements

4. Good demand in emerging markets in Asia-Pacific, Eastern Europe, Middle East and Latin America

5. Several customer segments expected to continue to drive demand also in a potential economic slowdown

6. Demand from general manufacturing expected to stabilize on a high level in Western Europe and North America


Three Synergistic Business AreasWith Leading Market Positions

Market Size Market share Position

Open: > 3 BEUR ~ 18 % #1

Total: > 10 BEUR ~ 7 %• Preventive maintenance • Inspections • Repairs • Modernizations • Spares

Service (Industrial & Port)

Standard Lifting

• Chain Hoists• Wire rope hoists• Crane Components• Industrial Cranes

• STS• RTG & RMG• Lift trucks• Reachstackers• Straddle Carriers

Heavy Lifting

- Industrial process cranes- Container handling & other port equip.

~ 7 BEUR

~ 2 BEUR ~ 12 % #1~ 5 BEUR ~ 6 % #4-6

> 4 BEUR ~ 15 % #1


Major Scale Benefits

• Konecranes can utilize clear scale advantages in R&D, manufacturing and procurement

• Over 80 percent of sales are derived from products and services where Konecranes is almost twice the size of its closest competitor.

Sales of industrial lifting equipment.Excluding port and other non-industrial sales.Reported figures for financial year ending in 2007.

0

200

400

600

800

1000

1200

1400

1600

Konecranes Competitor 1 Competitor 2 Competitor 3

Sales 2003 Sales 2007MEUR


Highlights 2007

• Third year of very strong growth

• Improved profitability on higher volumes, scale benefits, pricing

and increased productivity

• Further increase of market share

• Strengthened position in emerging markets

• Eight acquisitions strengthen crane, port and machine tool service

businesses

• Successful recruitment of Service personnel


2007 Group Orders Received1,872 (1,473) MEUR, +27 %

0

200

400

600

800

1000

1200

1400

1600

1800

2000

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

MEUR


2007 Group Net Sales1,750 (1,483) MEUR, +18 %

0

200

400

600

800

1000

1200

1400

1600

1800

2000

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

MEUR


2007 Group EBIT & MarginEBIT: 174.7 (105.5) MEUR* Margin: 10.0 (7.1) %

0

20

40

60

80

100

120

140

160

180

200

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 0 %

2 %

4 %

6 %

8 %

10 %

12 %

EBIT EBIT MARGIN

*EBIT excluding capital gain of 17.6 MEUR on real estate sale

MEUR


ServiceHeavy Lifting

Standard Lifting

29

37 342007

1,750 MEUR

Sales Split by Business Area and Region, %

(35) (33)

(32))

54

12

34

2007

(53)

(35)

(12)

AmericasAsia-PacificEMEA

1,750 MEUR


SERVICE


2007 Service: Orders & Sales*Orders: 563 MEUR, +26%Sales: 629 MEUR, +19%

0,0

100,0

200,0

300,0

400,0

500,0

600,0

700,0

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

ORDERS SALESMEUR

*2006 figures restated according to new reporting method. Earlier years are not restated.


2007 Service EBIT & Margin*EBIT: 78.7 (53.0) MEUR Margin: 12.5 (10.1) %

0

10

20

30

40

50

60

70

80

90

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 0 %

2 %

4 %

6 %

8 %

10 %

12 %

14 %

EBIT EBIT MARGIN

*2006 figures restated according to new reporting method. Earlier years are not restated.The margin in 1995-2005 would be approx. 1.5 %-points higher according to the new reporting method.

MEUR


2007 Service Contract Base 292 (263) thousand unitsAnnual value 106.4 MEUR, + 15 %

0

50 000

100 000

150 000

200 000

250 000

300 000

350 000

2001 2002 2003 2004 2005 2006 2007-10

10

30

50

70

90

110

NUMBER OF CRANES VALUEMEUR


STANDARD LIFTING


2007 Standard Lifting: Orders & Sales*Orders: 794 MEUR, +34%Sales: 693 MEUR, +24%

0

100

200

300

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

400

500

600

700

800

900

ORDERS SALESMEUR



2007 Standard Lifting EBIT & Margin*EBIT: 101.2 (51.5) MEURMargin: 14.6 (9.2) %

0

20

40

60

80

100

120

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 0 %

2 %

4 %

6 %

8 %

10 %

12 %

14 %

16 %

EBIT EBIT MARGIN

*2006 figures restated according to new reporting method. Earlier years are not restated.The 1995-2005 margin would be approx. 1.5 %-points lower according to the new reporting method

MEUR


HEAVY LIFTING


2007 Heavy Lifting Orders & SalesOrders: 634 MEUR, +22%Sales: 549 MEUR, +12%

0,0

100,0

200,0

300,0

400,0

500,0

600,0

700,0

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

ORDERS SALESMEUR


2007 Heavy Lifting EBIT & EBIT MarginEBIT: 34.0 (33.6) MEURMargin: 6.2 (6.8) %

0

5

10

15

20

25

30

35

40

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 0 %

2 %

4 %

6 %

8 %

10 %

12 %

14 %

16 %

18 %

EBIT EBIT MARGINMEUR


Order Book by Business AreaEnd-07: 758 (End-06: 572) MEUR, +33%SER 109 (101), STD 271 (175), HVY 406 (367) MEUR

0

100

200

300

400

500

600

700

800

2001 2002 2003 2004 2005 2006 2007

SERVICE STANDARD LIFTING HEAVY LIFTINGMEUR


0

100

200

300

400

500

600

700

800

900

Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Q3/07 Q4/07

SERVICE STANDARD LIFTING HEAVY LIFTINGMEUR

Quarterly Order Book


Personnel by Business AreaTotal: 8,404 (7,549) +855 Employees, +11.3 % SER + 513, STD + 146, HVY + 141

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

9 000

2001 2002 2003 2004 2005 2006 2007

SERVICE STANDARD LIFTING HEAVY LIFTING OTHER


OEM crane builders 6 %

Others 6 %

Pulp and paper 5 %

Power plants 5 %

Steel & other warehousing 3 %

General Manufacturing 25 %

1 %RefuseHandling

Automotive 2 %

Primary metals 10 %

Shipyards 3 %

Resellers 11 %

Petrochemical 3 %

Construction 2 %

Transport, Shipping 4 %

Harbors 14 %

Aviation, Aerospace<1 %

2007Sales

Sales by Industry % of Total Sales


Sales by Industry% of Total Sales

0,0 %

5,0 %

10,0 %

15,0 %

20,0 %

25,0 %

30,0 %

Q1/

02Q

2/02

Q3/

02Q

4/02

Q1/

03Q

2/03

Q3/

03Q

4/03

Q1/

04Q

2/04

Q3/

04Q

4/04

Q1/

05Q

2/05

Q3/

05Q

4/05

Q1/

06Q

2/06

Q3/

06Q

4/06

Q1/

07Q

2/07

Q3/

07Q

4/07

Pulp and Paper Steel & other warehousing General manufacturingPrimary metals Harbours ResellersTransport & shipping industry Power plants & Refuse handling


FOURTH QUARTER AND GROUP FINANCIALS

Teo Ottola, CFO


Q4 Group Orders & SalesOrders: 471 (367) MEUR, +28 %Sales: 523 (460) MEUR, +14 %

0,0

100,0

200,0

300,0

400,0

500,0

600,0

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 Q4/07

ORDERS SALESMEUR


Q4 Group EBIT & Margin Record-High Quarter: EBIT 60.4 (39.3) MEURMargin: 11.6 (8.5) %

-10

0

10

20

30

40

50

60

70

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

Q4/07

0 %

2 %

4 %

6 %

8 %

10 %

12 %

14 %

EBIT EBIT MARGIN

MEUR


Q4 Service Orders & Sales*Orders: 138 (123) MEUR, +13%Sales: 173 (161) MEUR, +7%


0

20

40

60

80

100

120

140

160

180

200


ORDERS SALESMEUR


Q4 Service EBIT & Margin*EBIT: 24.3 (17.6) MEURMargin: 14.0 (10.9) %

0

5

10

15

20

25

30

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

Q4/07

0 %

2 %

4 %

6 %

8 %

10 %

12 %

14 %

16 %

EBIT EBIT MARGINMEUR

*2006 figures restated according to new reporting method. Earlier years are not restated.The margin in 1995-2005 would be approx. 1.5 %-points higher according to the new reporting method.


Q4 Standard Lifting Orders & Sales*


0

50

100

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200

250


ORDERS SALESMEUR

Orders: 196 (138) MEUR, +43%Sales: 201 (160) MEUR, +26%


Q4 Standard Lifting EBIT & EBIT Margin*EBIT: 31.7 (16.2) MEURMargin: 15.8 (10.2) %

0

5

10

15

20

25

30

35

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

Q4/07

0 %

2 %

4 %

6 %

8 %

10 %

12 %

14 %

16 %

18 %

EBIT EBIT MARGIN

MEUR

*2006 figures restated according to new reporting method. Earlier years are not restated.The 1995-2005 margin would be approx. 1.5 %-points lower according to the new reporting method


Q4 Heavy Lifting Orders & Sales

0

50

100

150

200

250


ORDERS SALESMEUR

Orders: 169 (129) MEUR, +31%Sales: 188 (163) MEUR, +15%


0

2

4

6

8

10

12

14

16

18

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

Q4/07

0 %

2 %

4 %

6 %

8 %

10 %

12 %

14 %

EBIT EBIT MARGIN

MEUR

Q4 Heavy Lifting EBIT & EBIT Margin EBIT: 15.6 (14.0) MEURMargin: 8.3 (8.6) %


10.813.7

17.2

29.5

50.4

05

1015202530354045505560

2003 2004 2005 2006 2007

Return on Capital Employed

*2007 ROCE excluding capital gain on real estate was 46.2 %

*

ROCE %


51.2

7.512.5

16.6

36.5

05

1015202530354045505560

2003 2004 2005 2006 2007*2007 ROE excluding capital gain on real estate was 47.3 %

*

ROE %

Return on Equity


Gearing

7.0 %

22.4 %

39.3 %

65.0 %

57.3 %

75.8 %

102.1 %

79.3 %

0 %

20 %

40 %

60 %

80 %

100 %

120 %

Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Q3/07 Q4/07


Net Working CapitalPercent of Sales

9.5 %

12.8 %

15.4 %

18.3 % 15.8 %

15.1 % 14.8 % 14.4 %

0 %

2 %

4 %

6 %

8 %

10 %

12 %

14 %

16 %

18 %

20 %

Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Q3/07 Q4/07


Cash Flow From Operations Before Financing Items and Taxes

19.3

233.2

16.824.2

114.2

66.5

0

40

80

120

160

200

240

2003 2004 2005 2006 2007

MEUR


Cash flow per share before financing items and taxes

19.3

1.18

1.96

0.430.30

3.91

0

1

2

3

4

2003 2004 2005 2006 2007

EUR


Basic Earnings & Dividend per ShareProposed pay-out ratio of 36.9 %

19.3

0 . 2 20 . 3 3

0 . 4 3

1 . 1 7

2 . 1 7

0 . 2 60 . 4 5

0 , 8 0

0 . 5 0

0 . 2 8

0 , 0

0 , 5

1, 0

1, 5

2 , 0

2 , 5

0 3 0 4 0 5 0 6 0 7

E P S DIVIDE ND

* 2007 EPS excluding capital gain: EUR 1.95** Board’s Proposal

**

*

EUR / Share


Statement of income

2006MEUR

2007MEUR

Sales 1,482.5 1,749.7

Other operating income 2.0 20.3

Depreciation and impairments -22.5 -24.6

Other operating expenses -1,354.5 -1,553.1

Operating profit 105.5 192.3

Share of result of associated companies and joint ventures 0.7 0.7

Interests, net -9.5 -8.5

Other financial income and expenses -1.6 -5.7

Income before taxes 95.1 178.8

Taxes -26.5 -49.6

Net income for the period 68.6 129.2


MEUR 12/2006 12/2007 12/2006 12/2007

Non-current assets 219.6 218.0 Equity 223.7 280.8

Inventories 226.6 251.2 Non-current liabilities 199.6 118.8

Other current assets 472.8 487.7 Provisions 28.2 37.2

Current liabilities 467.4 520.1

Total assets 919.0 956.9Total s’holders equity and

liabilities 919.0 956.9

Balance sheet


MEUR 2006 2007

Operating income 105.5 192.3

Depreciation and impairments 22.5 24.6

Profits and losses on sale of fixed assets -0.3 -18.0

Other non-cash items 2.0 -0.2

Operating income before change in net working capital 129.7 198.7

Change in net working capital -15.4 34.4

Cash flow from operations before financing items and taxes 114.2 233.2

Financing items and taxes -32.8 -49.7

Net cash flow from operating activities 81.4 183.5

Net cash used in investing activities -64.8 -4.4

Cash flow before financing activities 16.6 179.1

Translation difference in cash -1.0 -1.7

Repurchase of own shares 0.0 -46.0

Dividends paid -15.8 -26.7

Change in interest bearing debt -13.6 -99.8

Proceeds from share subscriptions 14.1 6.7

Change of cash and cash equivalents 0.3 11.6

Cash flow statement


MEUR2006

MEUR2007 % Change

Sales 1 482.5 1 749.7 +18.0

Operating Income (EBIT) 105.5 192.3 +82.3

Income before taxes 95.1 178.8 +88.0

Net Income 68.6 129.2 +88.3

Cash flow from operations before financing and taxes 114.2 233.2 +104.2

Cash flow per share before financing and tax 1.96 3.91 +99.5

Net interest bearing debt 128.2 19.7 -84.6

Net gearing (%) 57.3 7.0

Solidity (%) 28.3 36.1

Return on capital employed (%) 29.5 50.4

Return on equity (%) 36.5 51.2

Equity per share (EUR) 3.77 4.80 +27.3

Investments 16.3 25.2 +54.6

Personnel at end of period 7,549 8,404 +11.3

Personnel on average 6,859 8,005 +16.7

Key figures


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

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

• Paul Lönnfors, Investor Relations Managertel.+358 (0)20 427 [email protected]

• Mikael Wegmüller, Director, Marketing and Communicationstel: +358 (0)20 427 [email protected]

www.konecranes.com

Contact information


NOT JUST LIFTINGTHINGS, BUT ENTIREBUSINESSES

2007 financial results - konecranes italia · konecranes is almost twice the size of its closest...

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