Results Q2/2006 1

Q2: STRONG GROWTHAND MARGIN IMPROVEMENTCONTINUES3 August, 2006Pekka Lundmark, President & CEO

Results Q2/2006 3

Orders Received

0

50

100

150

200

250

300

350

400

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

Meur

Results Q2/2006 5

Maintenance Services Special CranesStandard Lifting Equipment

Order Book by Business Area

0

100

200

300

400

500

600

700

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

MEUR

Results Q2/2006 6

• Pierre Boyer (46), graduate from HEC, France

• President, Region EMEA and member of the KCI KonecranesExecutive Board effective 1 Sept, 2006

• Currently head of Carrier Corporation’s Refrigeration operations in the Nordic, Netherlands and EMEA areas

New President, Region EMEA Appointed

Results Q2/2006 7

New Director, Marketing & Communications Appointed

• Michael Wegmüller (40), M.Sc. (Econ.)

• Director, Marketing & Communications and member of the Konecranes Executive Board effective 18 Sept, 2006

• Currently Chief Operating Officer at Publicis Helsinki

Results Q2/2006 8

• Paul Lönnfors (43), B.Sc. (Econ.)

• Investor Relations Manager effective as of 1 Sept, 2006

• Currently Communications & IR Manager at KONE Corporation

New Investor Relations Manager Appointed

Results Q2/2006 9

• MMH figures included into KCI Konecranes for 1 month• MMH Sales FY October 2005 apprx. 140 MEUR• Debt-free acquisition price apprx. 56 MEUR• Expected sales in June-December 2006 apprx. 90 MEUR,

EBITDA margin expected at 8% and EBIT margin at 6% • Expected positive EPS effect in 2006 of EUR 0.03,

annualised the effect before synergies is EUR 0.06 • Employs apprx. 990 people• Leading P&H brand name • Complementary product offering • Large installed base to boost Maintenance Services in North

America• Local presence in USA, Canada, Mexico and Chile

Acquisition of MMH Holdings, Inc.

Results Q2/2006 10

Coil Handling Crane Nuclear Dome CraneHot Metal Ladle Crane

Acquisition of MMH Holdings, Inc. Complements the Offering

• Good position in Steel, Nuclear Power and Wood Handling

Results Q2/2006 11

* 2004 - 2005 according to IFRS

0

50

100

150

200

250

300

350

400

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

MEUR

Net Sales

Results Q2/2006 12

EBIT

EBIT Margin

* 2004 - 2005 according to IFRS

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

MEUR

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

Operating Profit and Margin

Results Q2/2006 13

LTM Sales

LTM EBIT Margin

0

200

400

600

800

1000

1200

1400

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

MEUR

0%

1%

2%

3%

4%

5%

6%

7%

8%

LTM Sales and Operating Margin

Results Q2/2006 14

Note: Sales numbers include internal sales

Service Heavy Lifting

Standard Lifting

31

3039

31

34 35

LTM 2005

Sales Split by Business Area, %

Results Q2/2006 15

30

1820

32

LTM

29

1822

31

2005

Americas

Asia-Pacific

EU (w/o Nordic)

Nordic & Eastern Europe

Sales by Market Area, %

Results Q2/2006 16

OEM crane builders 4 %

Others 5 %

Pulp and paper 5 %

Power plants 4 %

Steel & other warehousing 3 %

General Manufacturing 21 %

1 %RefuseHandling

Automotive 3 %

Primary metals 16 %

Shipyards 3 %

Resellers 10 %

Petrochemical 3 %

Construction 2 %

Transport, Shipping 6 %

Harbours 13 %

Aviation, Aerospace 1 %

LTM

Sales by Industry LTM, %

Results Q2/2006 17

Sales by Industry LTM, %

Results Q2/2006 18

* 2005-2005 according to IFRS

0

20

40

60

80

100

120

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

MEUR

Maintenance Services Orders

Results Q2/2006 19

0

50,000

100,000

150,000

200,000

250,000

300,000

1999 2000 2001 2002 2003 2004 2005 Q2/06

0

10

20

30

40

50

60

70

80

90

MEURNumber of Cranes Value

Growth in Maintenance Contract Base

Results Q2/2006 20

* 2004 - 2005 according to IFRS

0

20

40

60

80

100

120

140

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

MEUR

Maintenance Sales

Results Q2/2006 21

EBIT

EBIT Margin

* 2004 - 2005 according to IFRS

0

2

4

6

8

10

12

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

MEUR

0%

2%

4%

6%

8%

10%

12%

Maintenance Operating Profit and Margin

Results Q2/2006 22

LTM Sales

LTM EBIT Margin

0

50

100

150

200

250

300

350

400

450

500

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

MEUR

0

1

2

3

4

5

6

7

8

9

%

Maintenance LTM Sales and Operating Margin

Results Q2/2006 23

Standard Lifting Equipment Orders

0

20

40

60

80

100

120

140

160

180

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

MEUR

Results Q2/2006 24

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

MEUR

Standard Lifting Equipment Sales

Results Q2/2006 25

EBIT

EBIT Margin

* 2004 - 2005 according to IFRS

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

MEUR

0%

2%

4%

6%

8%

10%

12%

Standard Lifting Operating Profit and Margin

Results Q2/2006 26

LTM Sales

LTM EBIT Margin

100

150

200

250

300

350

400

450

500

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

MEUR

0123456789101112

%

Standard Lifting LTM Sales and Operating Margin

Results Q2/2006 27

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

MEUR

Special Cranes Orders

Results Q2/2006 29

0

20

40

60

80

100

120

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

MEUR

Special Cranes Sales

Results Q2/2006 30

* 2004 - 2005 according to IFRS

0

1

2

3

4

5

6

7

8

9

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

MEUR

0%

2%

4%

6%

8%

10%

12%

14%

EBIT

EBIT Margin

Special Cranes Operating Profit and Margin

Results Q2/2006 31

0

50

100

150

200

250

300

350

400

450

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

MEUR

0

1

2

3

4

5

6

7

8

9

10

%LTM Sales

LTM EBIT Margin

Special Cranes LTM Sales and Operating Margin

Results Q2/2006 32

24,6

18,4

24,1

-0,6

6,7

20,7

-5

-1

3

7

11

15

19

23

2002 2003 2004 2005 1-6/05 1-6/06

MEUR

Net Income

Results Q2/2006 33

17.8

10.8

13.7

17.2

22.6

0

4

8

12

16

20

24

2002 2003 2004 2005 LTM

ROCE %

Return on Capital Employed

Results Q2/2006 34

14.2

7.5

12.5

16.6

30.2

0

4

8

12

16

20

24

28

32

2002 2003 2004 2005 LTM

ROE %

Return on Equity

Results Q2/2006 35

Guidance Full Year 2006

• At the moment we see no signs of slowing demand. • Full year sales growth is expected to be 40-45 %.• The positive margin development is expected to continue.

Results Q2/2006 37

1-6/2006MEUR

1-6/2005MEUR

1-12/2005MEUR

Sales 636.6 427.4 970.8

Other operating income 0.9 1.2 2.2

Depreciation -9.9 -7.3 -15.6

Other operating expenses -592.6 -407.4 -908.1

Operating income (EBIT) 35.0 13.9 49.3

Share of result of associated companies and joint ventures

0.3 0.2 0.5

Financial income and expenses -5.8 -15.0 -15.8

Income before taxes 29.5 -0.9 34.1

Taxes -8.9* 0.3* -10.0

Net income 20.7 -0.6 24.1

Earnings per share, basic (EUR) 0.36 -0.01 0.43

Earnings per share, diluted (EUR) 0.35 -0.01 0.42

* According to estimated tax rate

Statement of Income

Results Q2/2006 38

6/2006MEUR

6/2005MEUR

12/2005MEUR

Non-current assets 218.3 134.0 197.6

Inventories 218.6 152.1 157.0

Receivables and other current assets

354.5 230.6 325.4

Cash and cash equivalents 40.9 31.1 44.0

Total assets 832.3 547.8 724.0

Equity 173.3 127.1 152.1

Non-current liabilities 173.5 56.9 106.9

Provisions 20.8 15.8 20.1

Current liabilities 464.7 348.0 444.9

Total equity and liabilities 832.3 547.8 724.0

Gearing % 102.1 91.3 88.1

Solidity % 24.1 26.5 23.7

Equity/share, EUR 2.95 2.25 2.66

Balance Sheet

Results Q2/2006 39

MEUR 1-6/2006 1-6/2005

Operating income before change in net working capital 44.8 21.3

Change in net working capital -6.6 3.4

Cash flow from operations before financing items and taxes 38.2 24.7

Financing items and taxes -12.1 -8.3

Net cash flow from operating activities 26.1 16.5

Net cash used in investing activities -56.8 -9.4

Cash flow before financing activities -30.7 7.0

Dividends paid -15.8 -14.8

Change in interest bearing debt 33.7 17.2

Proceeds from options excercised 10.5 0

Net cash used in financing activities 28.5 2.4

Translation differences in cash -0.9 1.0

Change of cash and cash equivalents -3.1 10.4

Cash Flow Statement

Results Q2/2006 40

0.14

0.45

0.86

1.14

0.430.29

0

1

2

2002 2003 2004 2005 1-6/05 1-6/06

EUR

Net Cash Flow from Operating Activities/Share

Results Q2/2006 41

MEUR1-6/2006

MEUR 1-6/2005 % Change

Sales 636.6 427.4 48.9

Operating Income (EBIT) 35.0 13.9 152.3

Income before taxes 29.5 -0.9

Net Income 20.7 -0.6

Net cash flow from operating activities 26.1 16.5

Net cash flow from operating activities per share

0.45 0.29

Net interest bearing debt 177.0 116.1

Net gearing (%) 102.1 91.3

Solidity (%) 24.1 26.5

Return on capital employed (%), LTM 22.6 15.1

Return on equity (%), LTM 30.2 10.6

Equity per share (EUR) 2.95 2.25

Investments 7.7 7.4

Personnel at end of period 7 256 4 940

Personnel on average 6 435 4 814 33.7

Key Figures

Results Q2/2006 42

• Pekka Lundmark, President and CEOtel. +358-20 427 2000 or pekka.lundmark@konecranes.com

• Teuvo Rintamäki, Chief Financial Officertel.+358-20-427 2040 or teuvo.rintamaki@konecranes.com

• Paul Lönnfors, Investor Relations Managertel.+358-20-427 2050 or paul.lonnfors@konecranes.com

www.konecranes.com