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Q2: STRONG GROWTH AND MARGIN IMPROVEMENT CONTINUES. 3 August, 2006 Pekka Lundmark, President & CEO. Orders Received. Meur. 4. 0. 0. 3. 5. 0. 3. 0. 0. 2. 5. 0. 2. 0. 0. 1. 5. 0. 1. 0. 0. 5. 0. 0. Q2/04. Q2/02. Q3/02. Q4/02. Q1/03. Q2/03. Q3/03. Q4/03. Q1/04.
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Q2: STRONG GROWTHAND MARGIN IMPROVEMENTCONTINUES 3 August, 2006 Pekka Lundmark, President & CEO
Orders Received Meur 4 0 0 3 5 0 3 0 0 2 5 0 2 0 0 1 5 0 1 0 0 5 0 0 Q2/04 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 Q1/02
Standard Lifting Equipment Maintenance Services Special Cranes Order Book by Business Area MEUR 700 600 500 400 300 200 100 0 Q1/05 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06
New President, Region EMEA Appointed • 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 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
New Investor Relations Manager Appointed • Paul Lönnfors (43), B.Sc. (Econ.) • Investor Relations Manager effective as of 1 Sept, 2006 • Currently Communications & IR Manager at KONE Corporation
Acquisition of MMH Holdings, Inc. • 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. Complements the Offering • Good position in Steel, Nuclear Power and Wood Handling Nuclear Dome Crane Coil Handling Crane Hot Metal Ladle Crane
EBIT EBIT Margin Operating Profit and Margin
LTM Sales LTM EBIT Margin LTM Sales and Operating Margin
Sales Split by Business Area, % LTM 2005 Standard Lifting Service Heavy Lifting Note: Sales numbers include internal sales
Sales by Market Area, % LTM 2005 Asia-Pacific Nordic & Eastern Europe Americas EU (w/o Nordic)
Sales by Industry LTM, % Petrochemical 3 % Steel & other warehousing 3 % Pulp and paper 5 % Power plants 4 % General Manufacturing 21 % Resellers 10 % OEM crane builders 4 % LTM Automotive 3 % Construction 2 % Primary metals 16 % Transport, Shipping 6 % Aviation, Aerospace 1 % Shipyards 3 % Harbours 13 % 1 % Refuse Handling Others 5 %
EBIT EBIT Margin Maintenance Operating Profit and Margin
LTM Sales LTM EBIT Margin Maintenance LTM Sales and Operating Margin
MEUR 180 160 140 120 100 80 60 40 20 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 Standard Lifting Equipment Orders
MEUR 160 140 120 100 80 60 40 20 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 Standard Lifting Equipment Sales
EBIT EBIT Margin MEUR 16 12% 14 10% 12 8% 10 8 6% 6 4% 4 2% 2 0 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 * 2004 - 2005 according to IFRS Standard Lifting Operating Profit and Margin
LTM Sales LTM EBIT Margin MEUR % 500 12 11 450 10 400 9 8 350 7 300 6 5 250 4 200 3 2 150 1 100 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 Standard Lifting LTM Sales and Operating Margin
EBIT EBIT Margin Special Cranes Operating Profit and Margin
LTM Sales LTM EBIT Margin Special Cranes LTM Sales and Operating Margin
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.
Statement of Income * According to estimated tax rate
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