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Annual General Meeting 2017
CEO Mika Vehviläinen
21 March 2017
21 March 2017 Annual general meeting 1
21 March 2017 Annual general meeting 2
Cargotec’s Extended Executive Board
Mika Vehviläinen
CEO
Roland Sundén
President, Hiab
Mikko Puolakka
EVP, CFO Michel van
Roozendaal
President, MacGregor
Mikael Laine
SVP, Strategy
Stephen Foster
SVP, Audit & Assurance
Mikko Pelkonen
SVP, Human Resources Leena Lie
SVP, Communications
Antti Kaunonen
President, Kalmar
Soili Mäkinen
CIO
Outi Aaltonen
SVP, General Counsel
21 March 2017 Annual general meeting 3
Contents
1. Strategic development 2016
2. Result for 2016
3. Sustainability creating competitive advantage for Cargotec
4. Dividend and outlook for 2017
Strategic development 2016
Must-win battles to support strategy implementation
21 March 2017 Annual general meeting 5
Lead digitalisation Build world-class
leadership
Build world-class
services offering
Services operation development
Development of spare parts operations
Results already visible in Hiab
Services
729
814 883 872
23% 24% 24% 25%
0%
10%
20%
30%
40%
0
250
500
750
1 000
2013 2014 2015 2016
Sales of services MEUR
IoT Cloud platform built as the basis for
our digital solutions
The number of devices connected to
digital platforms increased strongly
Navis offering complemented by the
acquisition of INTERSCHALT
Digitalisation
Aim to establish more uniform
performance-based leadership culture
Over 200 key leaders engaged to
leadership transformation
Good progress in employee engagement
Leadership
Result for 2016
Profitability continued to improve
Record high operating profit excl.
restructuring costs
– Investments into the strategy: R&D costs
have increased 43% compared to 2013
Sales and profitability increased in Kalmar
and Hiab
MacGregor affected by difficult market
situation, new actions to safeguard
profitability started in Q4
127
149
231
250
4,0% 4,4%
6,2%
7,1%
2013 2014 2015 2016
Operating profit* EUR million Operating profit* margin
21 March 2017 Annual general meeting 10
Highlights of 2016: Highest operating profit* in Cargotec’s history
*) Excluding restructuring costs
181 204
315
373
0
50
100
150
200
250
300
350
400
2013 2014 2015 2016
21 March 2017 Annual general meeting 11
Strong cash flow from operations
MEUR
578
719 622
503
46,7%
59,2%
46,4%
36,0%
0%
20%
40%
60%
80%
0
100
200
300
400
500
600
700
800
2013 2014 2015 2016
Net debt Gearing %
21 March 2017 Annual general meeting 12
Strong balance sheet: gearing below the target level of 50%
MEUR
Sales and operating profit excl. restructuring costs
improved
– More efficient project management supported
profitability
The number of containers handled at ports increased
by 1.3%
– Demand for Kalmar’s container handling
equipment was stable
Customers’ interest in automated solutions increased,
but new investment decision making was slow
Services sales increased slightly, but fell short of our
expectations
– The development improved towards the end of the
year
Kalmar – Strategy implementation progressing
0
500
1000
1500
2000
2013 2014 2015 2016
Sales Orders received
0%
3%
5%
8%
10%
0
40
80
120
160
2013 2014 2015 2016
Operating profit* Operating profit* margin
MEUR
*) Excluding restructuring costs
21 March 2017 Annual general meeting 13
Sales increased by 12%
– Sales grew in all geographical areas
– Market share increased
– New products boosted orders (54 new products)
Operating profit excl. restructuring costs
improved significantly
– Profitability was supported by increased volumes,
profitability improvement measures and new
products
Sales of services grew by 7%
Hiab – Record-breaking year
0
200
400
600
800
1000
1200
2013 2014 2015 2016
Sales Orders received
0%
3%
5%
8%
10%
13%
15%
0
25
50
75
100
125
150
2013 2014 2015 2016
Operating profit* Operating profit* margin
MEUR
*) Excluding restructuring costs
21 March 2017 Annual general meeting 14
Sales and orders received decreased
– Considerably less new merchant ships were
ordered than in the previous year
– Sligthly increased oil price towards the end of the
year did not yet support investment activity in the
offshore industry
Operating profit excl. restructuring costs
declined, but remained positive
– New actions to safeguard profitability started
during the latter part of the year
Sales of services decreased by 12%
MacGregor – Difficult market situation continued
0
200
400
600
800
1000
1200
2013 2014 2015 2016
Sales Orders received
0%
3%
5%
8%
10%
0
25
50
75
100
2013 2014 2015 2016
Operating profit* Operating profit* margin
MEUR
*) Excluding restructuring costs
21 March 2017 Annual general meeting 15
R&D investments R&D investments have increased
by 43% compared to 2013
Digitalisation
Cargotec IoT Cloud platform
Investments in software operations
New product launches
Competitiveness, cost-efficiency,
and ecological efficiency of
products
21 March 2017 Annual general meeting 16
Investments in research and product development
63,5 67,3
82,8 90,8
2,0% 2,0%
2,2%
2,6%
0,0%
0,6%
1,2%
1,8%
2,4%
3,0%
0
20
40
60
80
100
2013 2014 2015 2016
R&D expenditure % of sales
MEUR
583 634
787
840 18,3% 18,9%
21,1%
23,9%
0,0%
2,5%
5,0%
7,5%
10,0%
12,5%
15,0%
17,5%
20,0%
22,5%
25,0%
0
100
200
300
400
500
600
700
800
900
1000
2013 2014 2015 2016
Gross profit, MEUR Gross profit- %
21 March 2017 Annual general meeting 17
Gross profit improvement driven by new products
MEUR
Sustainability creating competitive advantage for Cargotec
The need for sustainable and low-emission solutions
in the transportation industry is increasing
Legislation development expected
The market demand for low-emission solutions
has increased significantly
Transportation efficiency and emissions reduction
improved with:
More fuel-efficient and electricity-efficient
products
Automation solutions
Digitalisation
21 March 2017 Annual general meeting 19
Sustainability trends in the transportation industry
21 March 2017 Annual general meeting 20
Sustainability supports Cargotec’s business opportunities
Cargotec has clear sustainability targets and processes
The biggest positive environmental impact comes from using Cargotec’s solutions
Cargotec has defined its offering for eco-efficiency
Technology has been developed during the recent years
We want to be the thought leader and the market leader in eco-efficient products
Sales of eco-efficient solutions are expected to grow in the future
Approximately one fifth of Cargotec’s sales* in 2016
*Company estimate
21 March 2017 Annual general meeting 21
Cargotec’s offering for eco-efficiency
Visibility to customer’s material flows and the
logistics chain
• Improved control over operations that
consume fuel and other resources
Products that are in use in the growing
environmental industries, wind farming and
waste management
Technology that enables significant reductions
in fuel use or reduce significantly the risks of
oil spills in the sea
Solutions that help to reduce material use by
maintaining and upgrading the existing
solutions more efficiently
Dividend and outlook for 2017
Board proposal EUR 0.95 dividend per B share for 2016
21 March 2017 Annual general meeting 23
Dividend and earnings per share
0,89
1,11
2,21
1,95
0,42 0,55
0,80 0,95
0,00
0,50
1,00
1,50
2,00
2,50
2013 2014 2015 2016
Dividend Earnings per share Payout ratio
50%
36% 49%
47%
Operating profit excluding
restructuring costs for 2017 is
expected to improve from 2016
(EUR 250.2 million)
2017 outlook
Thank You
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