HANDELSBANKEN CAPITAL MARKETS SMALL/MID CAP SEMINAR

Transcription

1 HANDELSBANKEN CAPITAL MARKETS SMALL/MID CAP SEMINAR June 20, 2011 Teo Ottola, CFO

2 CONTENTS Konecranes in a nutshell Strategy going forward Looking ahead Growth aspects 2

3 KONECRANES IN A NUTSHELL 2011 Konecranes Plc. All rights reserved. 3

4 MISSION 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 4

5 SALES SPLIT BY BUSINESS AREA & REGION (R12M) 16% (17) R12M 58% 1,628 MEUR 42% (57) (FY 2010 (43) 1,546) R12M 31% 1,628 MEUR 53% (30) (FY 2010 (53) 1,546) 5

6 WE HAVE UNIQUE SERVICE BUSINESS A UNIQUE BUSINESS IN THE INDUSTRY WITH ITS OWN RIGHT TO GROW WIN-WIN SITUATION FOR CUSTOMER AND KONECRANES Improved productivity and uptime 3,500 service Technicians servicing cranes and machine tools of all makes Own, dedicated management 75% of equipment in maintenance contract base non- Konecranes equipment Preventive maintenance performed by well-trained professionals Level-based service concept up to fully outsourced material handling 2/3 OF THE INSTALLED EQUIPMENT SERVICED IN-HOUSE Productivity of the service technicians low Reactive maintenance > Too high downtime > Challenges to maintain skills to service modern equipment 6

7 EQUIPMENT MARKETS Market size ~8 BEUR INDUSTRIAL CRANES & COMPONENTS Position # 1 Other suppliers 87 % Konecranes 13 % PORT CRANES # 3 5 LIFT TRUCKS # 3 4 NUCLEAR CRANES Market just restarting 7

8 STRATEGY GOING FORWARD 8

9 DIFFERENTIATION THROUGH SERVICE AND TECHNOLOGY INNOVATION MAXIMIZING THE PRODUCTIVITY OF UPTIME MINIMIZING THE COST OF DOWNTIME SERVICE Preventive approach Five service levels Services for lifting equipment of every make 3,500 well-trained technicians in 578 locations servicing contract base of 381,000 items of equipment TECHNOLOGY Increased R&D investment through the recession Focus on digital controls, software, automation and service enabling technologies High attention to safety, quality and environment Smart Solutions to improve customers productivity 9

10 GLOBAL FOOTPRINT Footprint expansion Footprint expansion Footprint expansion Footprint expansion Main production sites Sales and service locations 10

11 LEADING 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 11

12 CHANNEL STRATEGY Our market is fragmented and there is a large number of small crane builders out there who 1) do not have their own component technology 2) who buy hoists or crane kits from the market >We have a dual channel strategy to maximize market coverage Crane builder, Dealer Alpha (distribution brands) End users Beta (Konecranes brand) Konecranes Group 12

13 LOOKING AHEAD 13

14 OUR NEW VISION STATEMENT We know in real time how millions of lifting devices and machine tools perform. We use this knowledge around the clock to make our customers operations safer and more productive Konecranes Plc. All rights reserved. 14

15 HOW DOES IT WORK IN PRACTICE? Crane usage data is collected by the Control Pro condition monitoring unit. Installed on crane Information is transmitted back to Konecranes via 2G modem. Information is compiled to a report, which focuses on: Safety Usage Information Service Life Report is delivered to you & Konecranes via Customer Portal. Konecranes service branch goes through reports and provides you with maintenance recommendations. TRUVIEW Connection TRUVIEW Service / TRUCARE 15

16 HOW DOES REMOTE MONITORING SUPPORT CUSTOMER S BUSINESS? 1) Increase the safety and reliability of cranes Detect unsafe and abusive operating practices prior to an incident occurring Predict when a safety critical component is nearing the end of its lifetime 2) Optimize service activities to obtain a better ROI on maintenance expenditures 3) Make informed decisions relating to modernization and overhaul of the crane Analyze the Past; Prepare for the Future 16

17 GROWTH ASPECTS 17

18 COMBINATION 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 18

19 BALANCED GROWTH BETWEEN THE BUSINESS AREAS ON THEIR OWN MERITS Service Equipment 100 % 90 % 80 % Market share gains 70 % 60 % Multiple distribution channels Broadened offering Footprint expansion in emerging markets 50 % 40 % 30 % Bolt-on M&A Synergies between business areas 20 % 10 % Outsourcing of service Machine Tool Maintenance New service products 0 %

20 GLOBAL STRUCTURAL CHANGE IS CONTINUING SHARE OF WORLD INDUSTRIAL PRODUCTION North America Europe Asia Source: Maddison (Historical Statistics), IMF, ETLA 20

21 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 % 21

22 NOT JUST LIFTING THINGS, BUT ENTIRE BUSINESSES 22