Switching focus from nuts and bolts to digital and datadriven. Lasse Eriksson Vice President, New Service Business Concepts, Kalmar Services

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1 Switching focus from nuts and bolts to digital and datadriven services Lasse Eriksson Vice President, New Service Business Concepts, Kalmar Services

2 Contents Speaker introduction On service transformation New services co-creation Concrete examples how digitalisation can improve productivity in the terminals On future roadmap

3 Lasse Eriksson Vice President, New Service Business Concepts, Kalmar Services (2017-) Previous roles Vice President, Digitalisation, Cargotec ( ) Program manager, technology research & industrial Konecranes ( ) Heading the Wireless automation and sensor systems Helsinki University of Technology ( ) D.Sc. (Tech.) 2008, Lic. Sc. 2007, M.Sc. 2003

4 Why change? Product centric Customer centric

5 Performance Contract Coverage Optimised Parts Inventory Optimised Maintenance Optimised Operations Parts availability Equipment availability Availability & Extra Capacity Operations Complete operations (OPEX) Parts availability Availability & reliability Availability, reliability and capacity Operational performance

6 Performance based contracts Contract at least partially based on: Output generated The value created Not: cost+, fixed price, usage based Key aspects Incentive to supplier to improve Focus on customer value creation Transfer of risk & reward from customer to supplier Dimensions Performance measurement Risk attitude and transfer Incentive payments

7 What does it take to deliver good service? Internalise the importance of services for the company Talent and competence Understand the width of change Dedicated services P&L Offering Delivery: Standard processes and tools It is all about people

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9 New digital services co-creation Customers needs drive the development of new service concepts Kalmar Co-Create is an example of a new way of creating solutions to customer pain points End users, solution suppliers and development partners together - in the middle of the most significant industry event Great results in two days - what if we spent two weeks together?

10 Kalmar Co-Create topics Cybercom: How to increase visibility and transparency in container flow in the terminals? Gofore: Terminal safety - how to create secure working environment for people on the fully automated terminal yard? Futurice: Automated maintenance operations. Re-thinking of maintenance operations, when everything in the terminals is automated, digitalized and electrified.

11 Examples of terminal performance improvement solutions

12 An example: Kalmar Eco Reachstacker with fuel performance guarantee Guaranteed fuel performance based on basic operating parameters and data from numerous reachstackers Guaranteed savings for customer

13 Virtual Reality applications Sales & Marketing Games Subscriptions Factory tours Retrofits Demonstrations Customized solutions 3D scanning Remote control On watch support Automated equipment Internal Employer branding Door opener - Digital technology awareness Employee introduction Product Development Training Safety Joystick handling Technical training Eco Driving New Driver training

14 Kalmar Service PULSE Data-driven service to optimize the maintenance flow Automated maintenance planning and parts delivery Right parts, at a right time in right place Reduced admin work Xxx

15 Kalmar Insight Increased operations transparency and efficiency by tracking equipment and container move events Reduced equipment cost of ownership through proactive maintenance Helps to eliminate delays and maximize throughput Increased driver performance through transparent measurements Allows operations to optimize equipment productivity and efficiency One platform for entire fleet

16 Kalmar SmartPort We can help you improve your day to day operations through process improvements. Smart Stack Smart Lift We can help keep you informed of how your equipment and overall operations are performing. We can assist your operators across a range of daily operational tasks.

17 Our roadmap topics towards digital and data-driven services Data flow services Safety & sustainability Performance Services digitalisation Equipment digitalisation Digital services improving efficiency of operations Increased safety Sustainable operations Enhanced service flow High-performance equipment with capabilities to enable wide scale of digital services

18 Summary While parts and maintenance are still the core services needed by terminal operators, we need to focus on the ways to improve and guarantee equipment availability and performance of operations In order to shape the industry, we need to work on this together - terminal operators must also demand availability and performance instead of nuts and bolts We at Kalmar are open for industry collaboration - with our customers, partners and other key stakeholders of the ecosystem

19 Thank you! Let s continue discussion lasse.eriksson@kalmarglobal.com