WORLD LEADER IN INDUSTRIAL LIFTING EQUIPMENT AND SERVICES ... · PDF fileEQUIPMENT AND SERVICES INVESTOR PRESENTATION ... • The widest service depots network in the crane industry

© 2009 Konecranes Plc. All rights reserved.

WORLD LEADER IN INDUSTRIAL LIFTING EQUIPMENT AND SERVICES

INVESTOR PRESENTATION

© 2009 Konecranes Plc. All rights reserved. Investor Presentation 2

Konecranes in Briefat end 2008

• Sales, rolling 12 months:

~MEUR 2,102.5

• Market cap:

~MEUR 744.3

• Employees:

~9,900

• Truly global presence with

operations in 43 countries


Konecranes Operates through ThreeBusiness Areas

Service: preventive maintenance, inspections, spare parts, modernisations

Standard Lifting: pre-designed components and cranes for various customer industries

Heavy Lifting: demanding material handling solutions for process industries, ports, intermodal terminals, bulk terminals, shipyards


STRATEGY IS BEARING FRUIT


Strong Global Position Already Achieved

• #1 in Crane Maintenance Services

• #1 in Standard Lifting Equipment

• #1 in Industrial Process Cranes

• A Strong Challenger Positioned at #4-6 in

the Fast-Growing Container Handling

Equipment and Other Port Crane market


Browning

Orley Meyer Overhead Crane Service

Landel

Munck-Canada Ltd.

Kelly Sales

CMS Company

Active Acquisition Track Record


Sales Tripled and EBIT Six-Folded in 4 Years95-08 CAGR of 13.3 %, of which 2/3 Organic


OPPORTUNITIES FOR FURTHER PROFITABLE GROWTH


Globalisation Driven Trends Bring Along Demand for Lifting Equipment and Services

• Economic growth driven industrial capacity build up

• Rising requirement for increasing productivity

OutsourcingHigh-class equipment

• Increasing global trade

• Western players transferring production to lower cost areas

•Increasing environmental consciousness

Investments in ecological solutions

• Increasing need for energy investments

• Need for new technology/ software applications


Structural Demand is Already Visible in the Activity of Many Customer Segments

20082,103 MEUR

(2007: 1,750)

Customer segments % of rolling 12 Month Sales at end Q4/2008

• Mining• Primary metals• Power plants• Petrochemical• Refuse handling• Transport & shipping• Harbours• Environmental aspects


Some Global Customers


Services is a Genuine Growth Market Benefiting from the Outsourcing Trend

• Outsourcing driven by productivity, opex, safety & competence.

• Customers increasingly prefer globally scalable suppliers.

Konecranes

Outsourced Market

“In-house”Maintenance

Case Study of North American Market 2007 (> 3.5 BUSD)

7 %


Crane Assembly, Component Manufacturing and Network of Partners on Three Continents

• The widest service depots network in the crane industry

Finland• wire rope hoists & winches• gear redurcers• control systems• automation/software

China• RTG-crane assemblies• wire rope hoists• chain hoists• winches• control systems• lift trucks

Sweden• lift trucks

France• chain hoists

Germany• wire rope hoists• chain hoists• crane factory

USA• wire rope hoists• chain hoists• gear reducers• winches• control systems• crane factories

UK• crane factories Ukraine

• mechanical crane components and heavy steel structures


Profitability is Supported by Increasing In-House Efficiency

• Demand-driven supply chain is geared to respond efficiently to changes in market demand:

– Presence on all three continents.– Further transfer of cost base to cost

competitive countries.– Capacity flexibility through outsourcing.

• Global procurement:– Implementation of global category

management.– Significantly reduced number of suppliers

within each category.– Potential to lower cost and increased

availability.


COMPREHENSIVE SALES OFFERING

© 2009 Konecranes Plc. All rights reserved.© 2009 Konecranes Plc. All rights reserved.

SERVICE


• Services on maintenance, modernisations and spare parts are offered for all crane makes

– 75 % of service revenue is generated from non-Konecranes equipment

– Service concept has been developed for over 4 decades

• Globally local presence

– Currently service depots in 485 locations

– 360,000 units under service contract

• Service offering is developed continuously

– more value-added to the customer

– performance-based agreements

– widening service offering based on in-house competences

Initial Purchase

Maintenance

Spare Parts

Modernisation

Real Case of Paper Process Crane over it’s 30-Year Life

Unique Service Concept and World’s Largest Crane Service Organisation


Customers are Offered a Wide Scope of Services According to Their Need

• Five levels of services:

1. Contact: Transaction-based relationship– One-off repairs, spare parts, inspections

2. Condition: Inspection-based relationship– Inspecting equipment and suggesting

improvements

3. Care: Proactive maintenance-based relationship– Based on contract, continuous cooperation

4. Commitment: Performance-based relationship– Fully outsourced service, long-term contract

5. Complete: Material handling partnership relationship– Taking responsibility on the operations of the

equipment, strategic partnership

• Industrial crane service• Port crane service• Modernizations• Parts• Machine tool services (MTS)


STANDARD LIFTING


Light Lifting and Chain Hoists

Jib Crane Chain Hoist

• Workstation Cranes

up to 2000kg

• Jib Cranes up to 5000kg

• XN Chain Hoists 60 – 7500kg

• Monorail Systems 125 – 2000kg

Monorail systems


Industrial Cranes

• Single Girder Cranes up to 12.5 tons

• Double Girder Cranes up to 80 tons

• Underslung Cranes up to 12.5 tons

• Explosion Proof Cranes up to 80 tons

Electric Overhead Traveling Crane


Customer Industries

• General Manufacturing• Automotive• Cement and Concrete• Entertainment• Glass• Mining• Petrochemical• Plastic• Power Plants• Pulp and Paper• Steel• Stone and Marble• Water Treatment Plants


HEAVY LIFTING


Heavy Lifting Trolleys for Process and Port Cranes

SM Standard Winch 5 - 500 ton

LV Tailored Winch 5 - 1000 ton


Steel Industry

• Solutions in EOT Cranes and Lift Trucks for All Process Phases

• From the Scrapyard through the melt-shop to the storage area

• Slabs, blooms, billets, format plates, coils, tubes and wires


Power Generation

• Supports the power industry with new crane installations

• Crane modernizations and replacement investments

• Positioning of extremely heavy and valuable loads

Solutions for both the construction and the maintenance of a power plant


Paper Industry

• Applications in the pulp and paper production

• Process duty and service cranes for all phases

• Clamp & Bale trucks for Loading and Unloading of trucks, rail cars or ships and handling of rolls in storage

• Automatic paper roll storage systems


Container HandlingPorts, Railroad, River and Inland Terminals

• Rubber Tired Gantry Crane

• Rail Mounted Gantry Crane

• Ship-to-Shore Gantry Crane

• Reachstacker

• Masted Lift Truck

• Empty Container Lift Truck

• Laden Container Lift Truck

• Straddle Carrier


Bulk Handling & Shipyards

• Bulk Handling Cranes

• Shipyard Cranes

• Shipboard Cranes

• Fork Lift Trucks

Slewing Ship-yard Crane

Munckloader Off Shore CraneHeavy Cargo Gantry Crane

Goliath GantryCrane

Fork Lift Truck

Grab Unloader

•© 2009 Konecranes Plc. All rights reserved.

Q4 Interim Report 30

Contact Information

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

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

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

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

www.konecranes.com

NOT JUST LIFTINGTHINGS, BUT ENTIREBUSINESSES


Documents

WORLD LEADER IN INDUSTRIAL LIFTING EQUIPMENT AND SERVICES ... · PDF fileEQUIPMENT AND SERVICES INVESTOR PRESENTATION ... • The widest service depots network in the crane industry