q3 2007 interim report - konecranes.it · konecranes q3 2007 - highlights • all-time high order...

© 2007 Konecranes Plc. All rights reserved. Q32007 1

31 October 2007 Pekka Lundmark, President and CEO

Q3 2007 INTERIM REPORT

Q32007 31.10.07 2© 2007 Konecranes Plc. All rights reserved.

Q3 2007 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.


Konecranes Q3 2007 - 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 %


Three Synergistic Business Areas

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

With Leading Market Positions


Q3 Orders Received506 (403) MEUR, + 26 %

0

100

200

300

400

500

600

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

MEUR


0

200

400

600

800

1 000

1 200

1 400

1 600

1 800

2 000

Q1/02Q2/02Q3/02Q4/02Q1/03Q2/03Q3/03Q4/03Q1/04Q2/04Q3/04Q4/04Q1/05Q2/05Q3/05Q4/05Q1/06Q2/06Q3/06Q4/06Q1/07Q2/07Q3/07

MEUR

Rolling 12-Month Orders Received1,769 (2006:1,392) MEUR, + 27 %


End-September Order Book 795 (End-September 06: 682) MEUR, +17%

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

MEUR SERVICE STANDARD LIFTING HEAVY LIFTING


Q3 Sales 424 (386) MEUR, +10 %

0,0

50,0

100,0

150,0

200,0

250,0

300,0

350,0

400,0

450,0

500,0

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

MEUR


Operating Profit and Margin45.5 (31.2) MEUR, +46 %, Margin 10.7 (8.1)%

-10

0

10

20

30

40

50

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

MEUR

0 %

2 %

4 %

6 %

8 %

10 %

12 %

EBIT EBIT Margin


Rolling 12M Sales and EBIT MarginSales 1,687 (Q3/2006:1,318) MEUR, +27 %, Margin 9.1 (Q3/2006:6.8)%

0

200

400

600

800

1 000

1 200

1 400

1 600

1 800

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

MEUR

0 %

1 %

2 %

3 %

4 %

5 %

6 %

7 %

8 %

9 %

10 %

LTM SALES LTM EBIT Margin

Q3 2007 11© 2007 Konecranes Plc. All rights reserved.

Service Heavy Lifting

Standard Lifting

32

35 33

30

36 34

R12M 2006

Sales Split by Business Area, %Rolling 12 months


35

13

52 R12M

35

13

52 2006

Americas

Asia-Pacific

EMEA

Sales by Market Area, %Rolling 12 months


Personnel + 735 from end-2006

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 Q3/2007

SERVICE STANDARD LIFTING HEAVY LIFTING OTHER


OEM crane builders 6 %

Others 5 %

Pulp and paper 5 %

Power plants 4 %

Steel & other warehousing 2 %

General Manufacturing 22 %

1 %RefuseHandling

Automotive 3 %

Primary metals 10 %

Shipyards 3 %

Resellers 14 %

Petrochemical 4 %

Construction 2 %Transport, Shipping 5 %

Harbors 14 %

Aviation, Aerospace<1 %

R12M

Sales by Industry Rolling 12-months, % of total sales


Sales by IndustryRolling 12-months, % 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/

07

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

Q32007 16© 2007 Konecranes Plc. All rights reserved.

SERVICE


Q3 Service Orders139 (118) MEUR, +18 %

0

20

40

60

80

100

120

140

160

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

MEUR


Service Rolling 12M Orders548 (407) MEUR, + 36%

0

100

200

300

400

500

600

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

MEUR


Service Contract Base 287 (259) thousand units Value 104 MEUR

50 000

100 000

150 000

200 000

250 000

300 000

1999 2000 2001 2002 2003 2004 2005 2006 Q3/2007

Units

-10

10

30

50

70

90

110

MEURNumber of Cranes Value


Q3 Service Sales Sales 156 (137) MEUR, +14%

0,0

20,0

40,0

60,0

80,0

100,0

120,0

140,0

160,0

180,0

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

MEUR


Q3 Service EBIT and MarginEBIT 21.3 (14.4), + 48 %, Margin 13.6 (10.5) %

0

5

10

15

20

25

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

MEUR

0 %

2 %

4 %

6 %

8 %

10 %

12 %

14 %

16 %EBIT EBIT Margin


Service Rolling 12M Sales and Operating Margin Sales 617 (475), + 30 %, Margin 11.7 (8.3) %

0

100

200

300

400

500

600

700

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

MEUR

0 %

2 %

4 %

6 %

8 %

10 %

12 %

14 %

LTM Sales LTM EBIT Margin


STANDARD LIFTING


Q3 Standard Lifting Orders202 (157) MEUR, +28 %

0

50

100

150

200

250

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

MEUR


Standard Lifting Rolling 12-month Orders 735 (551), +33%

0

100

200

300

400

500

600

700

800

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

MEUR


Q3 Standard Lifting Sales 178 (153) MEUR, +16%

0,0

20,0

40,0

60,0

80,0

100,0

120,0

140,0

160,0

180,0

200,0

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

MEUR


Standard Lifting Rolling 12-month Sales and Operating Margin Sales 651 (507), + 28 %, Margin 13.2 (10.2) %

0

100

200

300

400

500

600

700

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

MEUR

0 %

2 %

4 %

6 %

8 %

10 %

12 %

14 %



Q3 Standard Lifting EBIT MarginEBIT 28.0 (15.8), + 83 %, Margin 15.8 (10.0) %

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

MEUR

0 %

2 %

4 %

6 %

8 %

10 %

12 %

14 %

16 %

18 %

EBIT EBIT Margin


HEAVY LIFTING


Q3 Heavy Lifting Orders 195 (151) MEUR, + 29 %

0

50

100

150

200

250

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

MEUR


Breakthrough for Konecranes Straddle Carriers in Germany

In August, German container terminal andlogistics company Eurogate Container Terminal Hamburg GmbH ordered ten straddle carriers.

The straddle carriers will be delivered inFebruary 2008.

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


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 2008.

The rail span of a Goliath cranecan be up to 216 meters and the lifting height up to 98 meters.


Konecranes wins large port crane orders in Russia

In September and October cargo terminal OJSCPetrolesport (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-2008.

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.


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 2009.

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 2008.


Heavy Lifting Rolling 12M Orders 594 (529) MEUR, + 12 %

0

100

200

300

400

500

600

700

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

MEUR


Q3 Heavy Lifting Sales Sales 119 (125) MEUR, -5.4%

0,0

20,0

40,0

60,0

80,0

100,0

120,0

140,0

160,0

180,0

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

MEUR


Q3 Heavy Lifting EBIT and Margin EBIT 4.5 (8.3) MEUR, -46%, Margin 3.8 (6.6)%

0

2

4

6

8

10

12

14

16

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

MEUR

0 %

2 %

4 %

6 %

8 %

10 %

12 %

14 %

EBIT EBIT Margin


Heavy LiftingRolling 12M Sales and Operating MarginSales 524 (440) MEUR, +19%, Margin 6.2 (6.2)%

0

100

200

300

400

500

600

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

MEUR

0 %

1 %

2 %

3 %

4 %

5 %

6 %

7 %

8 %

9 %



Heavy Lifting EBIT and Margin 1995-2006

0

5

10

15

20

25

30

35

40

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

MEUR

0 %

2 %

4 %

6 %

8 %

10 %

12 %

14 %

16 %

18 %HEAVY LIFTING SPE EBIT %EBIT EBIT Margin


GROUP FINANCIALS

Teo Ottola, CFO


R12M Net Working CapitalPercent of Sales

12,8 %14,4 %14,8 %15,1 %

15,8 %18,3 %

15,4 %

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


Gearing

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


17,8

10,813,7

17,2

42,0

29,5

048

12162024283236404448

2002 2003 2004 2005 2006 R12M

ROCE %

Return on Capital Employed


14,2

7,512,5

16,6

47,5

36,5

05

101520253035404550

2002 2003 2004 2005 2006 R12M

ROE %

Return on Equity


+840 Employees7,4448,284Personnel at end of period

45.33.294.78Equity per share (EUR)

25.735.4Solidity (%)

34.747.5Return on equity (%) R12M

75.822.4Net gearing (%)

-56.3147.064.2Net interest bearing debt

54.60.661.02Cash flow per share before financing and tax

60.238.461.5Cash flow from operations before financing and taxes

6,687

3.0

26.6

20.3

28.9

31.2

385.8

MEURQ3 2006

42.0Return on capital employed (%) R12M

+1,218 Employees7,905Personnel on average (Jan-Sept)

76.75.3Capex(Excluding aquisitions

45.729.5Net Income

43.641.5Income before taxes

46.045.5Operating Income (EBIT)

10.0424.4Sales

% ChangeMEUR

Q3 2007

Key figures


Statement of income

0.10.4Share of result of associated companies and joint ventures

-8.7-12.0Taxes

28.941.5Income before taxes

20.329.5Net income for the period

0.5-1.8Other financial income and expenses

-2.9-2.5Interests, net

31.245.5Operating Profit

-349,6-373,8Other operating expenses

-5.6-5.7Depreciation and impairments

385.8424.4Sales

Q3 2006MEUR

Q3 2007MEUR

Other operating income 0.6 0.6


895.0970.1Total shareholders

equity and liabilities895.0970.1Total assets

501.8500.7Current liabilities

27.630.5Provisions438.2479.5Other current assets

171.6151.8Non-current liabilities237.0268.3Inventories

194.0287.1Equity219.8222.2Non-current assets

Q3 2006Q3 2007Q3 2006Q3 2007MEUR

Balance sheet


11.35.5Proceeds from share subscriptions

15,1-53.4Change in interest bearing debt

-15.8-26.7Dividends paid

0.988.6Cash flow before financing activities

-0.7-1.0Translation difference in cash

-57.92.0Net cash used in investing activities

58.886.6Net cash flow from operating activities

-17.8-40.1Financing items and taxes

10.813.0Change of cash and cash equivalents

76.6126.7Cash flow from operations before financing items and taxes

-5.3-4.8Change in net working capital

81.9131.6Operating income before change in net working capital

0.2-0.4Other non-cash items

-0.9-17.8Profits and losses on sale of fixed assets

15.617.8Depreciation and impairments

66.2131.9Operating income

1-9 20061-9 2007MEUR

Cash flow statement


Cash Flow From Operations Before Financing Items and Taxes

19.366,3

24,2

114,2

126,7

66,576,6

16,8

0

40

80

120

2002 2003 2004 2005 2006 1-9/06 1-9/07

MEUR


Cash flow per share before financing items and taxes

19.31,1

0,4

2,02,1

1,21,3

0,3

0

1

2

3

2002 2003 2004 2005 2006 1-9/06 1-9/07

EUR


• 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]

www.konecranes.com

Contact information


NOT JUST LIFTINGTHINGS, BUT ENTIREBUSINESSES

q3 2007 interim report - konecranes.it · konecranes q3 2007 - highlights • all-time high order...

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