POHJOLA PANKKI ONE-ON-ONE -PÄIVÄ - March 9, 2011 Pekka Lundmark, President and CEO Teo Ottola, CFO - Konecranes
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POHJOLA PANKKI
ONE-ON-ONE -PÄIVÄ
March 9, 2011
Pekka Lundmark, President and CEO
Teo Ottola, CFO
© 2011 Konecranes Plc. All rights reserved. 1
HIGHLIGHTS OF Q4/10
• Positives
– Key macroeconomic indicators continuously positive
– Pick-up in Port Cranes boosted Equipment order intake
– Continued EBIT margin expansion
• Negatives
– New equipment orders still relatively low in developed markets
Board of Directors proposes a dividend of EUR 1.00 per share
© 2011 Konecranes Plc. All rights reserved. 2
CAPACITY UTILIZATION: EU27 AND USA SOURCES: Eurostat (latest data point Q1/11), Federal Reserve Bank of St. Louis (December 2010) © 2011 Konecranes Plc. All rights reserved. 3
CONTAINER TRAFFIC
Annual container handling volume Monthly container handling volume
SOURCES: Drewry Container Annual 2009/2010, Drewry Freight Shipper Insight (latest data point October 2010)
© 2011 Konecranes Plc. All rights reserved. 4
MARKET OUTLOOK AND FINANCIAL GUIDANCE AS OF FEBRUARY 3, 2011 • The demand for maintenance ¾We forecast year 2011 sales and services is expected to be above operating profit to be higher than in last year’s level due to higher 2010 capacity utilization within customer industries • The demand for new equipment is expected to continue to grow in Asia-Pacific and in emerging markets in general. Also, customers in Western Europe and North America are gradually gaining confidence to increase their new equipment investments © 2011 Konecranes Plc. All rights reserved. 5
ABU DHABI PORTS COMPANY (ADPC) RELIES
ON KONECRANES
• Order of 30 automated stacking
cranes (ASC) and a container
terminal operating system (TOS)
• Order value over EUR 80 million
• Delivery in 2012
• Konecranes has a proven
solution for ASCs
– Earlier delivery of 30 ASCs to
Norfolk, Virginia, USA, in
operation
– 36 ASCs on order for Barcelona,
Spain, for delivery in 2012
© 2011 Konecranes Plc. All rights reserved. 6
ACQUISITIONS IN 2010 • Six MTS companies: two in Denmark, in the UK and in the US • Two crane service companies in France and Morocco • Purchase of 22% of shares in Kito ¾Capex on acquisitions and investments in associated companies EUR 46.5 million in 2010 ¾Acquisitive impact approximately 3% on orders and 2% on sales in 2010 © 2011 Konecranes Plc. All rights reserved. 7
ACQUISITION OF TECHNIPLUS IN MOROCCO • Port crane service and modernization company in Morocco – Konecranes’ first acquisition in North Africa • Before the acquisition Techniplus was the distributor of Konecranes’ lifttrucks and port equipment in Morocco • Techniplus has 120 employees and net sales of EUR 7 million (2009) © 2011 Konecranes Plc. All rights reserved. 8
ACQUISITION OF GRUAS KOMAN IN CHILE IN JANUARY 2011 • The acquisition also includes the Peruvian start-up subsidiary • Specialized in providing overhead lifting solutions and maintenance services in Chile, Peru, and Bolivia • Installed base of almost 500 cranes, a majority of these built on Konecranes’ technology • Gruas Koman has 60 employees and net sales of EUR 7 million (2009) © 2011 Konecranes Plc. All rights reserved. 9
MARKET SHARE AND SIZE IN 2010
Machine Tool Service
market estimated to be
2x Crane Service market
Total market ~10 BEUR Open market >3 BEUR
Note that market share
and size are based
on Konecranes’ estimates
as no comprehensive
statistics are available. Market size ~8 BEUR Market size ~11 BEUR
© 2011 Konecranes Plc. All rights reserved. 10GROUP ORDERS AND NET SALES Q4 Orders: 477.7 (361.1) MEUR, +32.3% | Net sales: 469.4 (428.9) MEUR, +9.5% © 2011 Konecranes Plc. All rights reserved. 11
GROUP ORDER BOOK 756.2 (607.0) MEUR, +24.6% © 2011 Konecranes Plc. All rights reserved. 12
GROUP EBIT & MARGIN Q4 EBIT: 45.8 (27.3) MEUR | Margin: 9.8% (6.4%), excluding restructuring costs © 2011 Konecranes Plc. All rights reserved. 13
GROUP ORDERS RECEIVED 1 536.0 (1 348.9) MEUR, +13.9% © 2011 Konecranes Plc. All rights reserved. 14
GROUP NET SALES 1 546.3 (1 671.3) MEUR, -7.5% © 2011 Konecranes Plc. All rights reserved. 15
GROUP EBIT & MARGIN EBIT: 115.1 (118.8) MEUR | MARGIN: 7.4% (7.1%), excluding restructuring costs © 2011 Konecranes Plc. All rights reserved. 16
SALES SPLIT BY BUSINESS AREA AND REGION
(R12M)
17%
(16)
FY 2010 FY 2010
1,546 MEUR 1,546 MEUR
57% (1,671) 43% 30% 53%
(1,671)
(63) (37) (29) (55)
Numbers are adjusted for sum to match 100%.
© 2011 Konecranes Plc. All rights reserved. 17RETURN ON CAPITAL EMPLOYED
ROCE %
56.3
46.2*
29.5
24.3 24.2
17.8 19.3
17.2
13.7
10.8
*The 2007 ROCE including capital gain was 50.4%
© 2011 Konecranes Plc. All rights reserved. 18SERVICE © 2011 Konecranes Plc. All rights reserved. 19
SERVICE: ORDERS AND NET SALES
Q4 Orders: 154.4 (121.8) MEUR, +26.7% | Net sales: 211.3 (170.5) MEUR, +24.0%
• New orders grew in all regions and business units
© 2011 Konecranes Plc. All rights reserved. 20SERVICE: EBIT AND MARGIN
Q4 EBIT: 22.1 (15.8) MEUR | MARGIN: 10.5% (9.3%), excluding restructuring costs
• Profitability up on higher volume
© 2011 Konecranes Plc. All rights reserved. 21SERVICE CONTRACT BASE 376 (363) thousand units, +3.4% | annual value 145.7 (122.3) MEUR, +20.1% © 2011 Konecranes Plc. All rights reserved. 22
SERVICE ORDER BOOK 103.3 (75.9) MEUR, +36.0% © 2011 Konecranes Plc. All rights reserved. 23
EQUIPMENT © 2011 Konecranes Plc. All rights reserved. 24
EQUIPMENT: ORDERS AND NET SALES
Q4 Orders: 349.2 (262.2) MEUR, +33.2% | Net sales: 288.5 (284.0) MEUR, +1.6%
• Order intake rose in all regions
• New orders up in all business units, except Lifttrucks, which saw strong orders already in Q4/09
• Significant Port Crane orders both in Q4/09 and Q4/10
© 2011 Konecranes Plc. All rights reserved. 25EQUIPMENT: EBIT AND MARGIN
Q4 EBIT: 27.4 (15.4) MEUR | MARGIN: 9.5% (5.4%), excluding restructuring costs
• EBIT margin improved due to cost savings and sales mix
© 2011 Konecranes Plc. All rights reserved. 26EQUIPMENT ORDER BOOK 652.9 (547.8) MEUR, +19.2% © 2011 Konecranes Plc. All rights reserved. 27
BALANCE SHEET AND
CASH FLOW
© 2011 Konecranes Plc. All rights reserved. 28NET WORKING CAPITAL
Q4 191.6 (138.8) MEUR | 12.4% (8.3%) of sales
*Q1/10 excluding dividend liability of EUR 53 million
© 2011 Konecranes Plc. All rights reserved. 29CASH FLOW BEFORE FINANCING ACTIVITIES
37.6 MEUR capex on acquisitions
and investments in associated
companies in 2010.
© 2011 Konecranes Plc. All rights reserved. 30GEARING Q4 Equity: 456.2 (407.1) MEUR | Net debt: -17.4 (-77.7) MEUR | Gearing: -3.8% (-19.1%) © 2011 Konecranes Plc. All rights reserved. 31
APPENDIXES © 2011 Konecranes Plc. All rights reserved. 32
STATEMENT OF INCOME
MEUR Q4 2010 Q4 2009 % Change
Sales 469.4 428.9 9.5
Other operating income 1.1 1.1
Depreciation and impairments -8.0 -11.8
Other operating expenses -416.7 -396.0
Operating profit 45.8 22.2 106.9
Share of associates’ and joint ventures’
1.2 -0.2
result
Financial income and expenses -1.6 -3.4
Profit before taxes 45.4 18.6 144.6
Taxes -13.5 -5.2
Net profit for the period 31.9 13.4 139.1
© 2011 Konecranes Plc. All rights reserved. 33BALANCE SHEET
December 31, December 31, December 31, December 31,
MEUR MEUR
2010 2009 2010 2009
Non-current
345.2 286.7 Equity 456.2 407.1
assets
Non-current
Inventories 269.9 248.2 107.9 113.3
liabilities
Other current
462.0 387.9 Provisions 50.1 61.1
assets
Cash and cash
98.5 137.5 Current 561.2 478.9
equivalents
liabilities
Total equity and
Total assets 1 175.5 1 060.4 1 175.5 1 060.4
liabilities
© 2011 Konecranes Plc. All rights reserved. 34CASH FLOW STATEMENT
MEUR Q4 2010 Q4 2009
Operating income before change in net working capital 53.8 36.4
Change in net working capital -31.0 64.4
Financing items and taxes 8.4 -10.8
Net cash from operating activities 31.2 89.9
Cash flow from investing activities -10.2 -18.4
Cash flow before financing activities 21.0 71.5
Proceeds from options exercised and share issues 0.1 0.2
Change of interest-bearing debt -27.4 -24.1
Net cash used in financing activities -27.2 -23.9
Translation differences in cash 1.3 1.5
Change of cash and cash equivalents -4.8 49.1
Cash and cash equivalents at beginning of period 103.3 88.5
Cash and cash equivalents at end of period 98.5 137.5
Change of cash and cash equivalents -4.8 49.1
© 2011 Konecranes Plc. All rights reserved. 35KEY FIGURES
MEUR Q4 2010 Q4 2009 % Change
Sales 469.4 428.9 9.5
Operating profit (EBIT), including restructuring costs 45.8 22.2 106.9
Profit before taxes 45.4 18.6 144.6
Net profit for the period 31.9 13.4 139.1
Net cash from operating activities 31.2 89.9 -65.3
Interest bearing net debt -17.4 -77.7 -77.6
Gearing (%) -3.8 -19.1 -80.1
Solidity (%) 44.7 45.1 -0.9
Return on capital employed (%), (R12M) 24.2 19.3 25.4
Return on equity (%), (R12M) 18.1 15.5 16.8
Equity per share (EUR) 7.6 6.8 11.7
Investments total (excl. acquisitions) 22.3 25.7 -13.0
Personnel at end of period 10 042 9 782 2.7
Personnel on average during the period 9 739 9 811 -0.7
© 2011 Konecranes Plc. All rights reserved. 36THE LARGEST SHAREHOLDERS
Market cap EUR 1,821 million excluding
Largest shareholders on December 31, 2010 Number of % of all treasury shares
shares shares
1 Htt 2 Holding Oy Ab 6,215,568 10.0
2 lmarinen Mutual Pension Insurance Company 2,074,522 3.4
3 Gustavson Stig, Chairman of the Board of
2,038,490 3.3
Konecranes
44.8% 38.5%
4 Varma Mutual Pension Insurance Company 2,005,275 3.2
5 Nordstjernan Ab 1,380,024 2,2
6 Nordea Investment Management, total 893,213 1.4
7 Sigrid Juselius Foundation 638,500 1.0 13.2%
8 SEB Gyllenberg Funds, total 604,317 1.0
4.4%
0.9
9 Handelsbanken Funds, total 548,310
*) According to the flagging
10 Folkhälsan non-governmental organization notification on January 5,
535,600 0.9 2011, BlackRock Inc. holds
svenska Finland rf
6,441,109 (10.39%)
Konecranes’ treasury shares * 3 ,042,456 4.9 Trading information Konecranes Plc shares.
• Listing: NASDAX OMX Helsinki
Nominee registered shares 27,783,495 44.8 • Date of listing: March 27, 1996
• Segment: Large Cap
Other shareholders 14,242,350 23.0 • Sector: Industrials
• Trading code: KCR1V
Total number of shares 62,002,120 100.0 • 1-12/10 average daily trading volume 349,257 shares,
EUR 8.3 million
*) Konecranes Plc is in possession of 2,524,760 own shares directly and 517,696 own
shares indirectly through KCR Management Oy.
© 2011 Konecranes Plc. All rights reserved. 37INVESTOR
PRESENTATION
© 2011 Konecranes. All rights reserved.CONTENTS
• Konecranes in a nutshell
• Long-term objectives
• The big picture for Konecranes
• Strategy going forward
• Business Area Service
• Business Area Equipment
© 2011 Konecranes. All rights reserved. 39KONECRANES
IN A NUTSHELL
© 2011 Konecranes Plc. All rights reserved. 3/8/2011 40 Presentation Name / AuthorMISSION AND VISION Mission • We are not just lifting things, but entire businesses We deliver the highest lifecycle value by focusing on: • Maximizing the productivity of uptime • Minimizing the cost of downtime Vision • We want to be the undisputed leader of the lifting industry, and a benchmark for business performance and customer service © 2011 Konecranes. All rights reserved. 41
OUR PRODUCTS AND SERVICES
LIGHT LIFTING STANDARD DUTY HEAVY DUTY
MANIPULATORS SYSTEMS CRANES CRANES
STRADDLE SHIP-TO-SHORE GOLIATH
YARD CRANES CARRIERS CRANES SHIPYARD CRANES
NUCLEAR CRANES FORKLIFT TRUCKS SERVICE AND MACHINE TOOL
AND REACH STACKERS MODERNIZATIONS SERVICE
© 2011 Konecranes. All rights reserved. 42OUR CUSTOMERS
2010 sales
MEUR 1,546
© 2011 Konecranes. All rights reserved. 43TWO SYNERGETIC BUSINESS AREAS: SERVICE AND EQUIPMENT © 2011 Konecranes. All rights reserved. 3/8/2011 44 IR presentation / Miikka Kinnunen
COMPETITIVE LANDSCAPE © 2011 Konecranes. All rights reserved. 45
LONG-TERM OBJECTIVES © 2011 Konecranes. All rights reserved. 46
LONG-TERM
OBJECTIVES
Profitability
• 10 % operating margin over the
cycle
Growth
• Vision to reach a global market
share of 30 %
Capital structure
• No quantitative target for the
capital structure, but the
optimal long-term gearing (net
debt/equity) is considered to
be in the range of 50-80 %
© 2011 Konecranes. All rights reserved. 47THE BIG PICTURE FOR
KONECRANES
© 2011 Konecranes. All rights reserved. 48KEY BUSINESS DRIVERS
Developed markets
• Outsourcing of service
• Automation
• Eco-efficiency
• Safety
Developing markets
• Significant share of industrial investments
• Service market only recently started
• Basic technology
• Multiple local players
© 2011 Konecranes. All rights reserved. 49COMBINATION OF ORGANIC AND ACQUISITIVE
GROWTH
1. Our main strategy is to grow organically
2. In M&A, our first priority are bolt-on acquisitions
3. We also keep an open mind towards larger M&A
© 2011 Konecranes. All rights reserved. 50WMI Cranes, India 2011
Kito (22%), Japan 2010
Machine Tool Solutions Unlimited, USA 2009
Dynamic Crane Systems, South Africa 2009
MAJOR Knight Europe, Germany 2009
ACQUISITIONS ACS Technologies, Austria 2009
AND Sanma, China 2009
Electron Services, UK 2008
JOINT VENTURES 2008
Ausio Sistemas, Spain
Kongsberg Automation, Norway 2007
Consens Transportsysteme, Germany 2007
Savcor One, Finland 2007
Morris Materials Handling, USA 2006
Zaporozhcrane, Ukraine 2005
R.Stahl Fördertechnik, Germany 2005
SMV Liftrucks, Sweden 2004
Morris Material Handling, UK 2004
Meiden Hoist System Company (Joint Venture), Japan 2002
Noell Service und Maschinentechnik, Germany 2000
Trost & Hilterhaus, Germany 1998
MAN SWF Krantechnik, Germany 1997
Kranco, USA 1993
Lloyds British Testing, UK, Australia 1991
Landel, USA 1987
Verlinde, France 1986
R&M Materials Handling, USA 1983
Wisbech-Refsum, Norway 1973
© 2011 Konecranes. All rights reserved. 51BALANCED GROWTH BETWEEN THE BUSINESS
AREAS
Service Equipment
100 %
90 %
80 %
70 %
60 %
50 %
40 %
30 %
20 %
10 %
0%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
© 2011 Konecranes. All rights reserved. 52APAC’S SHARE OF REVENUES HAS INCREASED
FROM 7% TO 16% IN 10 YEARS
EMEA AME APAC
100 %
90 %
80 %
70 %
60 %
50 %
40 %
30 %
20 %
10 %
0%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
© 2011 Konecranes. All rights reserved. 53STRATEGY GOING
FORWARD
© 2011 Konecranes. All rights reserved. 54KEY STRATEGIES
• Differentiation through service
and technology innovation
• Lifting people
• Global footprint
• Alpha/beta channels
• Global, demand-driven supply
chain
• Real-time information
© 2011 Konecranes. All rights reserved. 55DIFFERENTIATION THROUGH SERVICE AND
TECHNOLOGY INNOVATION
MAXIMIZING THE PRODUCTIVITY OF UPTIME
MINIMIZING THE COST OF DOWNTIME
SERVICE TECHNOLOGY
• Preventive approach • Increased R&D investment
• Five service levels through the recession
• Services for lifting • Focus on digital controls,
equipment of every make software, automation and
• 3,300 well-trained service enabling technologies
technicians in 545 • High attention to safety,
locations servicing contract quality and environment
base of 377,000 items of • Smart Solutions to improve
equipment customers’ productivity
© 2011 Konecranes. All rights reserved. 56LIFTING PEOPLE
Important issues of:
COMPANY
• Finding new talent CULTURE
• Retaining old talent
• Ageing population
LEADERSHIP
PERFORMANCE
MANAGEMENT
COMPETENCE
DEVELOPMENT
© 2011 Konecranes. All rights reserved. 57GLOBAL FOOTPRINT
Footprint
expansion
Footprint
expansion
Footprint
expansion
Footprint
expansion
● Main production sites
● Sales and service locations
© 2011 Konecranes. All rights reserved. 58LEADING POSITION BOTH IN CHINA AND INDIA
• Access mid market segment in China
• Further strengthening of manufacturing
and sourcing in China
• Cross-distribution of certain products
• Enhances presence in Far East and
North America
• Development of offering in India
• Adds in India to supply and sourcing
network
*Closing subject to regulatory approvals
© 2011 Konecranes. All rights reserved. 59CHANNEL STRATEGY
• Our market is fragmented and
there is a large number of small
crane builders out there who End users
1) do not have their own
Crane builder, Dealer
component technology
2) who buy hoists or crane kits
from the market
“Beta”
(Konecranes
“Alpha”
brand)
(distribution
> We have a dual channel strategy brands)
to maximize market coverage
Konecranes Group
© 2011 Konecranes. All rights reserved. 60GLOBAL, DEMAND-DRIVEN SUPPLY CHAIN ● Main production sites © 2011 Konecranes. All rights reserved. 61
REAL-TIME INFORMATION © 2011 Konecranes. All rights reserved. 62
SERVICE © 2011 Konecranes. All rights reserved. 63
CUSTOMERS’ BUSINESS DRIVERS AND OUR RESPONSE Globalization • 545 locations in 43 countries and growing Productivity • Smart maintenance and Konecranes lifting equipment Tighter time frames • No breakdowns with smart maintenance Higher flexibility • Resources according to the need Lack of competent resources • Global Training Network © 2011 Konecranes. All rights reserved. 64
SERVICE MARKET
Western countries - closed markets
mostly in steel and ports
• Strong unions In-house Open Competing
external Konecranes
• Municipal owners service
67 %
market
33 % suppliers > 20 %
< 80 %
Developing countries – dominance
of in-house maintenance
• Lack of service providers Total market ~10 BEUR Open market >3 BEUR
• Poor service culture
• Social responsibilities
Strategy in developing countries Machine Tool Service
• Build local presence around own market estimated to be
deliveries and FDI 2x Crane Service Market
• Remote services
• Acquisitions
© 2011 Konecranes. All rights reserved. 65SERVICE PRODUCTS OVERVIEW
Spare parts,
Preventive Corrective
Modernization Consultation accessories
maintenance maintenance
services services and lifting
services services
equipment
Predictive
Inspection Planned consulting
services repairs services Spare parts
Field
modernizations
Equipment
assesment
services
Maintenance
On call repairs Accessories
services
Training
services
Engineered
Repair shop modernizations
Measurement Lifting
services (in- Remote
services equipment
house repairs) services
© 2011 Konecranes. All rights reserved. 66FIVE LEVELS OF SERVICE
FULL SCOPE
• Fully outsourced
OUTSOURCING 55 COMPLETE
COMPLETE material handling
• Full scope maintenance
4 COMMITMENT
4 COMMITMENT outsourcing
• Tied to customers KPI’s
• Preventive maintenance
3 CARE
3 CARE
contract
• Contract on periodic and scheduled
2
2 CONDITION
CONDITION inspections
• Maintenance action recommendations
• One-off repairs, spare parts,
1 CONTACT inspections, modernizations,
1 CONTACT
emergency on-call
ONE-OFF
TRANSACTIONS
© 2011 Konecranes. All rights reserved. 67ACTIONS TO DRIVE GROWTH
Contract base growth continues
• 50 years’ experience of selling inspection and preventive maintenance
contracts
• 10 years’ experience of selling higher commitment contracts
• Equipment sales opportunities (both won and lost cases)
Service innovation
• Crane Relability Survey (CRS)
• New measurement and analysis tools such as RailQ, RopeQ
• Remote Services
• More to come
Acquisitions
• Acquisitions of small service companies will continue
• Larger acquisitions normally add service business too
Parts
• Activating sales to non-contract customers
© 2011 Konecranes. All rights reserved. 68NEW SERVICES
CRANE RELIABILITY REMOTE SERVICES RailQ
SURVEY (CRS)
• Launched to support • New runway measurement
• Designed to enhance safety, Konecranes advanced and analysis method
improve performance, and maintenance concept • Customer gets a 3D model
extend life span of equipment
• Utilizes real-time equipment and report to bring runway
• Customized review process and usage data back to accepted tolerances
in-depth analysis
• Maintenance needs and
• Helps customers to create expert support can be
maintenance plans, control optimized and predicted
ownership costs and maximize
ROI over equipment’s life-cycle
© 2011 Konecranes. All rights reserved. 69MACHINE TOOL SERVICE
• Synergy from shared customers
in Crane Service
• Why Konecranes – a
professional worldwide
business partner with service
as core competence
• Located in countries with
established Crane Service
operations
– Nordic countries, the UK, the US
• Level 3 (preventive
maintenance) or level 4
(outsourcing) contracts within
general manufacturing
© 2011 Konecranes. All rights reserved. 70ACTIONS TO IMPROVE EBIT
Smart growth
• Fixed cost control – growth less than
sales growth
Investments will improve profitability once
completed
• New service products – differentiation
and better profitability
• New maintenance management software
rollout underway
• Service management training
Supply and distribution of parts & materials
• Distribution Centers (DCs) linked with
service branches
• Consolidating service purchase volumes
via DCs
© 2011 Konecranes. All rights reserved. 71DIFFERENTIATION THROUGH SERVICE
A UNIQUE BUSINESS IN THE
INDUSTRY WITH ITS OWN RIGHT TO GROW
WIN-WIN SITUATION FOR CUSTOMER AND KONECRANES
9Improved productivity and uptime
3,300 service Own, 75% of Preventive Level-based
Technicians dedicated equipment in maintenance service
servicing management maintenance performed by concept up to
cranes and contract base well-trained fully
machine tools non- professionals outsourced
of all makes Konecranes material
equipment handling
2/3 OF THE INSTALLED EQUIPMENT SERVICED IN-HOUSE
9Productivity of the service technicians low
9Reactive maintenance
> Too high downtime
> Challenges to maintain skills to service modern equipment
© 2011 Konecranes. All rights reserved. 72EQUIPMENT © 2011 Konecranes. All rights reserved. 73
OUR
MARKETS INDUSTRIAL
Position Opportunity
CRANES &
COMPONENTS #1
Market size ~8 BEUR
Other
suppliers Konecranes
87 % 13 %
# 3…5
PORT CRANES
Equipment only
LIFT TRUCKS # 3…4
NUCLEAR Market
CRANES just
re-starting
© 2011 Konecranes. All rights reserved. 74PRODUCT POSITIONING • The lowest total cost of ownership • High quality • High reliability • Safe to operate and maintain • Performance • Ergonomics • Eco-efficient • Excellent service back-up © 2011 Konecranes. All rights reserved. 75
INDUSTRIAL CRANES
• Compact technical solutions
• Additional semi or full automatic
features
• Workstation Lifting Systems
– Products & solutions for light loads
– Manipulators & light lifting
equipment (from 60 kg to 2,500 kg)
• Standard Duty Cranes
– Typically general manufacturing
applications (1 t… 80 t)
– Good market coverage, streamlined
sales and order execution process
• Heavy Duty Cranes
– Heavy loads (100 t … 1,000 t) &
purpose build 24/7 process solutions
– Mass customization and project
management
© 2011 Konecranes. All rights reserved. 76COMPONENTS
• Serial produced crane components
for industrial cranes
– Electric chain and wire rope hoists
– End trucks, controls, electrics
• Customers are local independent
crane makers and distributors
• Complements and adds our
geographical market coverage
• Brings additional scale benefits into
our supply chain
© 2011 Konecranes. All rights reserved. 77PORT CRANES
• Advanced high performance
solutions
• Component , electronics and
software synergies with Industrial
Cranes (R&D, supply chain)
• Steel structures by global
subcontracting
• Full offering for container handling
– Ship-to-Shore cranes (STS)
– Rail Mounted Gantry cranes (RMG)
– Rubber Tyred Gantry cranes (RTG)
– Automatic Stacking Cranes (ASC)
– Straddle Carriers (SC)
• High capacity bulk material
unloaders (coal, iron ore)
• Large, high lifting capacity
(..1,200 t) cranes for shipyards
© 2011 Konecranes. All rights reserved. 78LIFTTRUCKS
• Full offering from 10 tons upwards
– Fork lift trucks (up to 60 tons)
– Empty container handlers
– Reach stackers
• Not in below 10 tons mass market
• Premium class
– Performance
– Reliability
– Driver comfort, ergonomics
– Safety
– Lowest total cost of ownership
• Same customers as in Ports Cranes and
Industrial Cranes
• Own direct sales, distributors and agents
across the globe
• Active cross-selling for cranes (and vice versa)
• Components by subcontractors, assembly &
testing by own operations
© 2011 Konecranes. All rights reserved. 79Special equipment
NUCLEAR CRANES
• All nuclear material handling
equipment needed in nuclear
power plants
– We are the only the kind of
vendor
• Over 50% of the existing
plants have our equipment
• Safe, reliable, compact and
high quality solutions
• Same solutions in new
equipment and in
modernizations Standard components
• Covering the whole world,
currently the strongest
position in USA
© 2011 Konecranes. All rights reserved. 80GROWTH AGENDA • World’s most
compact polar
Organic – introduce new products crane
• Cask transporter
Lifting
PAST 18 MONTHS for spent fuel Volume
capacity • New >32 tons (Pcs)
(tons) model family
• Several safety
enhansing Shipyard cranes
features 1
1000
Chain hoist
Port Cranes Polar crane
family for 10
developing
markets
100
100 Lift trucks
Charging crane
Standard Duty Cranes 1000
Heavy Duty Cranes
10
Light Crane Systems
Wire rope hoist 10000
1
Electric chain hoist
Manipulators Smarton: New, modularized 100000
Manual winch
Renewed wire core product family, with
Delivery time: Hours rope hoist Q- Years&
smart user friendly safety
Price: platform, adding productivity features Nx10m€
0,1k€
smart features
© 2011 Konecranes. All rights reserved. 81GROWTH AGENDA
Footprint expansion – China, India
End users: End users:
FDI FDI
Prime SOE International Indian
Prime SOE
Prime Chinese Prime & developing
Indian
(Prime Chinese)
Developing Chinese
Local Indian
Local Chinese
”~ + 10 % p.a.” ”~ + 30% p.a.”
”WRH ~200,000…250,000 pcs” ”WRH 15,000 pcs”
© 2011 Konecranes. All rights reserved. 82PROFITABILITY AGENDA
Improvement strategy
• Quality, safety, technology: price
premium
• Modular products
– Serial effect for components
• Purchasing
– Global sourcing
– Consolidate vendors
– Smart partnerships
– Focus on saving in complete
costs of operations
• Cost efficient manufacturing,
with constant focus on
improving productivity
© 2011 Konecranes. All rights reserved. 83MANUFACTURING STRATEGY
Assembly Lift trucks Own operations
Steel structures, Industrial cranes High volumes: Low volumes:
own operations subcontracted
crane assembly Port cranes
High volumes: Single units:
Components Hoists & trolleys own operations subcontracted
Electrics
Own operations
Parts End trucks
• Load carrying key parts:
Rope drums own operations
• Target for scale benefit
Wheels
Gears
© 2011 Konecranes. All rights reserved. 84MANUFACTURING STRATEGY
• Supply chain = global & demand
driven
• Protect & manage your know-how € ¥
$
• Target scale benefit:
– Via lower level component families
– Via benefiting from similar type of
production
• Develop supply chain, which is able
to balance exchange rate
fluctuations
• ”Own plant must always be
overloaded”
• Have flexibility buffer in own plants:
– Rented labor in EU
– Outsource also part of own
production
© 2011 Konecranes. All rights reserved. 85PROFITABILITY AGENDA
Current improvement actions
• Consolidate part of
outsourced production in
China into Sanma, i.e.
Sanma =
– Own Chinese brand with
own products
– Part of our global supply
chain
• WMI (India): India to enter
into our supply chain
Our LCC hubs
• Ukraine (Zaporozch):
Development to continue
© 2011 Konecranes. All rights reserved. 86FINANCIAL DATA © 2010 Konecranes Plc. All rights reserved. 87
COST BREAKDOWN © 2010 Konecranes Plc. All rights reserved. 3/8/2011 88 IR presentation / Miikka Kinnunen
EPS AND DPS
*
**
* 2007 EPS excl. capital gain EUR1.95 ** Board’s proposal to the AGM
© 2011 Konecranes Plc. All rights reserved. 89CONTACT
INFORMATION
Pekka Lundmark, President and CEO
Tel. +358 (0)20 427 2000
pekka.lundmark@konecranes.com
Teo Ottola, Chief Financial Officer
Tel.+358 (0)20 427 2040
teo.ottola@konecranes.com
Miikka Kinnunen, Director,
Investor Relations
Tel. +358 (0)20 427 2050
miikka.kinnunen@konecranes.com
Anna-Mari Kautto, Assistant,
Investor Relations
Tel. +358 (0)20 427 2960
anna-mari.kautto@konecranes.com
www.konecranes.com
© 2011 Konecranes Plc. All rights reserved. 90NOT JUST LIFTING
THINGS, BUT
ENTIRE BUSINESSES
© 2011 Konecranes. All rights reserved. 91You can also read
