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Becoming the leader in intelligent cargo handling Investor presentation, June 2020 June 2020 Investor presentation 1
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Page 1: Investor presentation, June 2020 Becoming the leader in … · 2020-06-02 · Investor presentation, June 2020 Investor presentation June 2020 1. Investor presentation June ... The

Becoming the leader in intelligent cargo handling

Investor presentation, June 2020

June 2020Investor presentation 1

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June 2020Investor presentation 22

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Content1. Cargotec in brief

2. Investment highlights

3. Kalmar

4. Hiab

5. MacGregor

6. Recent progress

7. Appendix

3

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Cargotecin brief

44

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Sales:

EUR 3,683 million

EBIT: 7.2%

Strengths we are building upon

Sales split: new

equipment vs service

and software

June 2020Investor presentation 5

Strong global player with well-balanced business

Sales by

geographical area

Sales by

business areas

Kalmar

47%

Hiab

37%

MacGregor

16% AMER

34%

EMEA

48%

APAC

18%

Service and

software

33%

New equipment

67%

Figures: 2019

EBIT = Comparable operating profit

Leading market positions

in all segmentsStrong brands Loyal customers Leading in technology

Kalmar

Sales: EUR 1,723 million

EBIT: 9.4% (EUR 161.8 million)

Hiab

Sales: EUR 1,350 million

EBIT: 12.6% (EUR 170.2 million)

MacGregor

Sales: EUR 611 million

EBIT: -4.6% (EUR -28.2 million)

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Key competitorsCargotec is a leading player in all of its business areas

June 2020Investor presentation 6

Global main

competitors

Other

competitors

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Currently two businesses performing well

June 2020Investor presentation 7

Net sales Q1/2020, last 12 monthsEUR million

Trend in orders,

last 12 months

Profitability: Comparable EBIT

margin (Q1/2020)

Kalmar software (Navis)

and Automation and Projects

division

MacGregor

-1%

Hiab

-2%

Kalmar equipment and service

(excluding Automation and

Projects Division & Navis)

Low profitability

-3.5%

10.0%

Low double digit

* Figures rounded to closest 100 million

~1,300

~1,300

3,686

Kalmar

equipment

Hiab

MacGregor

Kalmar APD and

software

~400

~600

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Investment highlights

8

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1. Technology leader and strong market

positions, leading brands in markets with

long term growth potential

2. Our vision is to become the global leader

in intelligent cargo handling

3. Growing service & software business

and asset-light business model are

increasing stability

4. Capitalising global opportunities for

future automation and software growth

5. On track for profitability improvement

and to reach financial targets

Investment highlights: Why invest in Cargotec?

9June 2020Investor presentation

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1. Technology leader and strong market positions, leading brands in markets with long term growth potential

June 2020Investor presentation 10

Global

megatrends

Globalisation

and trade

growth

Urbanisation

Growing

middle class

Growth

drivers

Container

throughput

growth

Construction

activity

Automation

Digitalisation

Competitive

advantages

Strong brands

Full

automation

offering

Technology

leadership

Market

position

#1 or #2 in all

major

segments

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2. Our vision is to become the global leader in intelligent cargo handling

June 2020Investor presentation 11

VISION GLOBAL LEADER IN INTELLIGENT CARGO HANDLING

MUST-WIN BATTLES

WIN THROUGH CUSTOMER CENTRICITY

We help our customers achieve their goals

by aligning our offering and way of working to

serve them better.

ACCELERATE DIGITALISATION

We build and expand our digital solutions to offer

a great customer experience and more efficient

business processes.

ADVANCE IN SERVICES

We extend our offering towards intelligent solutions that

enable us to serve our customers wide across their

lifecycle.

PRODUCTIVITY FOR GROWTH

We focus on activities that add value and benefit

our customers and us by developing our

business operations and common platforms.

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June 2020Investor presentation 12

3. Growing service & software business and asset-light business model are increasing stability

Asset-light business model with a flexible cost

structure

Kalmar and Hiab: efficient assembly operation

MacGregor: efficient project management and

engineering office: > 90% of manufacturing and

30% of design and engineering capacity outsourced

No in-house component manufacturing

Next steps to increase service and software sales:

Improve service offering through digital solutions

Build on Navis position as industry leader

Increase spare parts capture rates

Boost service contract attachment rates

Service and software* sales

MEUR

766847

931 905 938 9801,062

107

108

121 149152

147

168

0

100

200

300

400

500

600

700

800

900

1,000

1,100

1,200

2013 2014 2015 2016 2017 2018 2019

Services Software

+9%

+10% +0%+4%

873

955

1,052 1,0531,090

*) Software sales defined as Navis business unit and automation software

1,126+3%

1,230+8%

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Industry trends support growth

in port automation:

Only 40 terminals (out of 1,200

terminals) are automated or semi-

automated currently globally

Ships are becoming bigger and

the peak loads have become an issue

Increasing focus on safety

Customers require decreasing energy

usage and zero emission ports

Optimum efficiency, space utilization

and reduction of costs are increasingly

important

Shortage and cost of trained and

skilled labour pushes terminals to

automation

June 2020Investor presentation 13

4. Capitalising global opportunities for future automation and software growth

Significant possibility in port

software:

Container value chain is very

inefficient: total value of waste and

inefficiency estimated at ~EUR 17bn

Over 50% of port software market is

in-house, in long term internal

solutions not competitive

Navis has leading position in

port ERP

Customers consider their automation

decisions carefully

Shipping line consolidation

Utilisation rates of the existing

equipment base

Container throughput volumes

Efficiency of the automation solutions

Automation creates significant cost savings*

Labour costs 60% less labour costs

Total costs 24% less costs

Profit increase 125%

* Change when manual terminal converted into an automated operation

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3,358

3,7293,514

3,250 3,304

3,683

149

231250

259242

264

0

50

100

150

200

250

300

350

400

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

2014 2015 2016 2017 2018 2019

Net sales

Comparable operating profit

5. Clear plan for profitability improvement and to reach financial targets

June 2020Investor presentation 14

Growth

Target to grow faster than market

Megatrends and strong market

position supporting organic growth

M&A potential

Balance sheet and dividend

Target gearing < 50% and

increasing dividend in the range of

30-50% of EPS, dividend paid twice

a year

Profitability

Target 10% operating profit and

15% ROCE in 3-5 years*

Higher service and software sales

key driver for profitability

improvement

Cost savings actions:

2020 EUR 30 million (indirect

purchasing and new Business

Services operations)

Product re-design and improved

project management

Sales and comparable operating

profit development

*Target announced in September 2017

4.4%

6.2% 7.1% 8.0%

Comparable

operating profit margin

Service and software

Targeting service and software sales

40% of net sales, minimum EUR 1.5

billion in 3-5 years*

7.3% 7.2%

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Kalmar

Investor presentation 1515

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373 395 401 416 444 465 478 477 502 519 538

173182 182 185

195202 206 203

212 218 22396

98 101 101109

116 117 117121

125129

642675 685 702

748784 801 797

836862

890

0

200

400

600

800

1,000

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

APAC EMEA AMER

Container throughput to be impacted by COVID-19 situation but forecasted to recover

TEU million

+3.1%

+5.1%+1.5%

+2.6%+6.5%

+4.9%+2.3%

Growth from 2013 to 2023 39%

CAGR 3.3%

2019-2023: Drewry: Container forecaster Q1 2020

2018: Drewry: Container forecaster Q4 2019

2016-2017: Drewry: Container forecaster Q2 2019

2015 Drewry: Container forecaster Q2 2018

2013-2014 Drewry Global Container Terminal Operators Annual Report 2013

June 2020Investor presentation 16

+4.8%

+3.3%

-0.5%

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Due to the COVID-19 pandemic, the evaluation is

paused and we return to it later (situation 24 April 2020).

Cargotec will review alternative development paths

including new ownership structures and a potential sale

of Navis business

The aim of the strategic evaluation is to secure best

possible growth and value creation for the next

development phase for Navis

Cargotec’s investment since 2011 has enabled Navis to

become the market leader in terminal operating systems

(TOS), and more than doubled revenue to EUR 115

million in 2019

Cargotec’s other software business will not be part of the

evaluation

Cargotec to evaluate strategic options forNavis business

Investor presentation 17June 2020

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Committed to become the leader in intelligent cargo handling – evaluating future options for value creation

Increased focus on

intelligent solutions and

system level optimisation.

Availability and

performance-based

solutions and services

Advanced robotics

Evaluating ecosystem play

Continuous development of

equipment, spare parts and

maintenance services

3

2

1

Investor presentation 18June 2020

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Kalmar provides integrated port automation solutions also after potential divestment of Navis

June 2020Investor presentation 19

Terminal Logistic System (TLS)

Truck / Transfer area

ASC stack area

Automatic stacking crane (ASC) area

Automated Horizontal Transportation

Quay crane area

Equipment Equipment

Terminal Operating System (TOS) coordinates and optimizes the planning and management of container

and equipment moves

Kalmar provides integrated port automation solutions including

software, services and a wide range of cargo handling equipment

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20

Robotics asan opportunity

KALMAR EQUIPMENT

AUTOMATED SOLUTION

ROBOTICS FUNCTIONALITY

Digitalisation Autonomous Electrification

June 2020Investor presentation

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Towards new business models

21

Virtual capability

Validated output

High-speedcommission

Connected services

De/Re commission

Simultaneous engineering

Optimisedsolution

Faster return on capital

Increased uptime

Replacement upgrade

A digital life of the customer

June 2020Investor presentation

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Services provide our biggest medium-term growthopportunity

Market

share

Market

size

Services

3-5%

8B€

Equipment & Projects

20-30%

6B€ 0.5-1B€

Software

20-30%

June 2020Investor presentation 22

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Kalmar and Navis to deliver world-first intermodal automation solution to Sydney, Australia

Greenfield intermodal terminal, Qube’s Moorebank Logistics Park

First fully automated intermodal terminal in the world

Kalmar OneTerminal contract, including Navis N4 TOS

All equipment can be operated electrically on local solar power

Order value EUR 80 million, booked in Q2 2018

Fully digitalised and autonomous container handling solution with software and services to Yara

Solution enables autonomous, cost efficient and emission-free operations of the Yara Birkeland container ship

in Norway

23

Automation deals highlight our successful investments in automation

June 2020Investor presentation

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Hiab

June 2020Investor presentation 2422

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EMEA construction outputy/y change (%)

AMER construction outputy/y change (%)

Construction output driving growth opportunity

Oxford Economics: Industry output forecast

3/2020

-3.0%

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

2010 2012 2014 2016 2018 2020 2022

60

70

80

90

100

110

120

130

Index Change %

-3.0%

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

2010 2012 2014 2016 2018 2020 2022

60

70

80

90

100

110

120

130

Index Change %

June 2020Investor presentation 25

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June 2020Investor presentation 26

Strong global market position and customers across diverse industries

*) Cargotec estimate

~1.5LOADER

CRANES

~0.6DEMOUNTABLES

~0.3TRUCK MOUNTED

FORK LIFTS

~0.3FORESTRY &

RECYCLING CRANES

~0.9TAIL

LIFTS

MARKET SIZE*

(EUR billion)

KEY

SEGMENTS

HIAB GLOBAL

POSITION & TREND

Construction

and Logistics #2

Waste and

Recycling,

Defense#1

Construction

and Logistics #1

Timber, Pulp,

Paper & Recycling #2

Retail Industry and

Logistics #2

Industry segment

indicative sales

mix 2018

Most important segments• Construction and

Building Material

• Delivery Logistic

• Waste & Recycling

• Timber, Paper & Pulp

• Defense Logistic

• Road & Rail

• Other

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Urbanisation and Consumption growth driving needs for efficiency

Digitalisation and Connectivity enabling new business solutions

North America and main European markets continue to grow

Developing markets strong load handling equipment penetration potential

Construction, Waste & Recycling, Logistics and Governmental

business segments show continued growth projection

New applications market and segment growth potential

Developing for increasing demand in Electrification and Automation

Growing demand for comprehensive life-cycle service offerings

and tailored business solutions

Attractive megatrends and growth drivers

June 2020Investor presentation 27

MEGA

TRENDS

MARKET

GROWTH

KEY

SEGMENTS

PRODUCT

OFFERING

SERVICE

SOLUTIONS

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Hiab’s key growth drivers

June 2020Investor presentation 28

Cranes

Gain market share in big

loader cranes and crane

core markets

Tail lifts

Enter fast growing emerging

markets and standardise

and globalise business

model

Truck-mounted forklifts

Accelerate penetration in

North America and Europe

Services

Increase spare parts capture

rates driven by connectivity

and e-commerce

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MacGregor

29

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We are an active leader in all maritime segments

June 2020Investor presentation 30

Merchant

Cargo Flow

Marine

People Flow

Naval Logistics

and Operations

Offshore

Energy

Marine Resources

& Structures

Container cargo

Bulk cargo

General cargo

Liquid cargo

RoRo cargo

Ferry

Cruise

Superyachts

Oil & Gas

Renewables

Research

Fishery

Aquaculture

Mining

Naval & Military

Supplies Logistics

Naval & Military

Operations Support

Ship-to-ship

transfer

Lifecycle Services

Picture: Equinor

~2/3 of sales ~1/3 of sales

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Merchant Ships and Offshore contracting – short-term challengesIncreased uncertainty and weakening global economy limit ship owners’ interest to invest

Source: Clarkson Research, March 2020 June 2020 31Investor presentation

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MacGregor’s asset-light business modelgives flexibility

June 2020Investor presentation 32

Sales &

marketing

Design &

engineering

Manufacturing Installation Lifecycle

support

MacGregor MacGregor MacGregor MacGregor MacGregor

OutsourcedOutsourced

Outsourced

Cost-efficient scaling

90% of manufacturing outsourced

30% of design and engineering capacity outsourced

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The potential cost savings in 2020 are estimated to be

around EUR 15 million

Of which EUR 3 million achieved during Q1/2020

Potential cost savings from the TTS integration

EUR ~12 million in 2020

EUR ~10 million in 2021

EUR ~5 million in 2022–2024

TTS integration cost synergy components

Roles/Positions

Facilities

Supply chain

Planned MacGregor cost savings

June 2020Investor presentation 33

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Recent progress

31

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June 2020Investor presentation 35

Highlights of Q1 2020 – Lower comparable operating profit due to less favourable business mix

5764 68

74

40

6.7%7.1%

7.6%7.3%

4.6%

Q1/19 Q2/19 Q3/19 Q4/19 Q1/20

Comparable operating profit EUR million

Comparable operating profit margin

Orders received decreased by 24%

Sales remained on Q1/2019 level

Comparable operating profit decreased by

31%

Kalmar -21%

Hiab -11%

MacGregor’s comparable operating profit

was -5 MEUR

Assessment of strategic options for Navis

paused

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Safety of our personnel and customers top priority

Increasing uncertainty and restrictions set by

authorities have slowed decision making and

weakened orders received throughout Q1

Challenges in supply chain: lack of components

Assembly units in Italy, Spain, Malaysia and Ireland closed

during March

Delays in delivery schedules, limited access for specialists

Weak visibility

Group wide focus on safeguarding business

continuity, cash and adjusting cost structure

Investor presentation 36

The coronavirus pandemic affected Cargotec in Q1/20

May 2020June 2020

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Group wide temporary cost savings programme

(communicated 27 March)

Office workers (ca. 6,000 employees) have shifted

to a four-day working week with a corresponding

reduction in salaries.

Until further notice and with their consent, the

salaries of the company's management have been

reduced by 20 percent as of 1 April.

External services reduced

Travel minimised

Expected savings 10 MEUR / month

Cost structure adjustments will continue as the

situation requires

Rapid reaction to adjust cost structure

June 2020Investor presentation 37

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June 2020Investor presentation 38

Number of containers handled at

ports declined

Customers are postponing decision-

making in major investments

Construction activity remained

stable in Europe and US

In the merchant sector orders and

activity decreased from an already

low level while offshore remained

at a historically low level

Market environment Q1/2020

Source: Clarkson Research

(number of ships and offshore units)

Indicative historical average

185

920

100

200

300

400

Q1/2019 Q1/2020

12 18

020406080

100120

Q1/2019 Q1/2020

170 171

0

200

Q1/2019 Q1/2020

186 188

0

200

Q1/2019 Q1/2020

193 186

0

200

Q1/2019 Q1/2020

Long term contracting – Key driver for MacGregor

Construction output – Key driver for Hiab

Global container throughput (MTEU) – Key driver for Kalmar

Merchant ships > 2,000 dwt/gt (excl. ofs & misc) Offshore mobile units

United States Europe

Source: Oxford Economics

Source: Drewry

Historical average Historical average

50%-50%

-3.8%

+1.0% +0.8%

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June 2020Investor presentation 39

432550

486 450516

417 396 446334

307

301294 357

341

340307

322

296

124

131141

184165

116156

193

151

863

981921

9911,022

872 858

962

781

0

200

400

600

800

1,000

1,200

Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020

Kalmar Hiab MacGregor

Orders received decreased in Q1/2020

MEUR

-8%

(y/y)

-13%

(y/y)

-35%

(y/y)

,

,

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June 2020Investor presentation 40

1,127 1,101 1,083 1,049 952

483 453 458406

396

536519

712633

591

2,1452,072

2,251

2,0891,938

0

500

1,000

1,500

2,000

2,500

Q1/19 Q2/19 Q3/19 Q4/19 Q1/20

Kalmar Hiab MacGregor

Order book remains strong

Order bookMEUR

-11%

(y/y)

Order book by reporting

segment, Q1 2020

49%

20%

31%

Kalmar Hiab MacGregor

,

,

,

,

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June 2020Investor presentation 41

SalesMEUR

Comparable operating profitMEUR

Sales remained on the same level compared to Q1/2019

57

6468

74

40

-20

-10

0

10

20

30

40

50

60

70

80

Q1/19 Q2/19 Q3/19 Q4/19 Q1/20

Kalmar Hiab MacGregor Cargotec total EBIT*

*) Including Corporate admin and support

x

401 427 424 471404

316358 307

368

302

139127

170

176

153

0

250

500

750

1,000

1,250

Q1/19 Q2/19 Q3/19 Q4/19 Q1/20

Kalmar Hiab MacGregor

856911 901

1,015

858

,

,

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June 2020Investor presentation 42

Service and software* salesMEUR

249 259 269 285260

3841

4446

40

0

50

100

150

200

250

300

350

Q1/19 Q2/19 Q3/19 Q4/19 Q1/20

Software Services

Q1/20 service sales +5%

Kalmar -3%

Hiab +1%

MacGregor +24%

Software sales +7%

Service and software sales

constituted 35% of total sales

in Q1/20

Service and software sales continued to grow y-o-y in Q1/2020

*Software sales defined as strategic business unit Navis and automation software

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Investor presentation

MEUR Q1/20 Q1/19 Change

Orders

received

334 516 -35%

Order book 952 1,127 -16%

Sales 404 401 +1%

Comparable

operating

profit

26 32 -21%

Comparable

operating

profit margin

6.3% 8.1% -180bps

Kalmar Q1 – Orders received and comparable operating profit declined

TO BE UPDATED

Orders received declined in

automation orders and mobile

equipment

Sales remained on Q1/2019 level

Service sales decreased by 3%

Comparable operating profit

decreased Increased share of project deliveries

Supply chain challenges in projects

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Investor presentation

MEUR Q1/20 Q1/19 Change

Orders

received

296 341 -13%

Order book 396 483 -18%

Sales 302 316 -5%

Comparable

operating

profit

30 34 -11%

Comparable

operating

profit margin

10.0% 10.7% -70bps

Hiab Q1 – Comparable operating profit margin remained stable

Orders received decreased in all

regions

Sales decreased

Service sales increased by 1%

Comparable operating profit

decreased to 30 MEUR due to

lower volumes

Based on 31.3.2020

estimate

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Investor presentation

MEUR Q1/20 Q1/19 Change

Orders

received

151 165 -8%

Order book 591 536 +10%

Sales 153 139 +10%

Comparable

operating

profit

-5 1 < -100%

Comparable

operating

profit margin

-3.5% 0.9% -440bps

Orders received decreased by 8%

Decline in merchant, increase in

offshore and service orders (+21%)

Sales increased by 10%

Service sales +24%

Comparable operating profit

declined

Low capacity utilisation in certain units

Lower sales margins

Productivity improvements ongoing 2 MEUR achieved from 15 MEUR

cost savings programme

Remaining 13 MEUR expected for

Q2-Q4

MacGregor Q1 – Loss makingquarter, service sales increased

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June 2020Investor presentation 46

Key figures – Order book remained strong

Q1/20 Q1/19 Change

Orders received, MEUR 781 1,022 -24%

Order book, MEUR 1,938 2,145 -10%

Sales, MEUR 858 856 +0%

Comparable operating profit, MEUR 40 57 -31%

Comparable operating profit, % 4.6% 6.7% -210 bps

Items affecting comparability, MEUR -13 -6 -106%

Operating profit, MEUR 26 51 -48%

Operating profit, % 3.1% 6.0% -290 bps

Net income, MEUR 11 31 -63%

Earnings per share, EUR 0.18 0.48 -63%

Earnings per share, EUR* 0.31 0.55 -43%

ROCE, %** 6.5% 8.3% -180 bps

*) Excluding items affecting comparability and adjusted with related tax effect

**) ROCE (return on capital employed), last 12 months

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June 2020Investor presentation 47

Cash flow declined

-4

2717

86

3141

81

208

23

-50

0

50

100

150

200

250

Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20

Cash flow from operations before financing items and taxesMEUR

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June 2020Investor presentation 48

Balanced debt portfolio

*Cargotec adopted the IFRS 16 standard on 1 Jan 2019.

Loan structure, %

(31.3.2020)

20%

70%

10%

Bilateral bank loansBonds and Schuldschein loansCommercial papers and bank overdrafts

Gearing-% excluding IFRS16

719622

503 472

625 586 618

188 180

59%

46%

36%

44%

54%57%

0%

20%

40%

60%

0

200

400

600

800

1,000

1,200

2014 2015 2016 2017 2018 2019 Q1/2020

Net debt IFRS 16 Lease liability** Gearing-%

MEUR

33%

41%44%

,

,

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June 2020Investor presentation 49

Balanced maturity profile

EUR 144 million maturing in 2020 Q2-Q4

Solid liquidity position (31.3.2020)

+ 281 MEUR cash and cash equivalents

+ 300 MEUR committed long-term undrawn

revolving credit facilities

- 183 MEUR repayments of interest-bearing

liabilities during next 12 months

Total liquidity 399 MEUR

200 MEUR additional bank loans raised in

April 2020

Bank loans and the revolving credit facility

include a financial covenant

Gearing must be retained below 125% (44% on 31

March 2020 for loans and credit facilities signed pre-

IFRS 16 and 57% for loans signed post-IFRS 16)

Strong financial position and balanced maturity profile

Repayment schedule of interest-bearing liabilities excluding

finance lease

MEUR

144131

155

125

100

124

149

0

50

100

150

200

2020 Q2-Q4

2021 2022 2023 2024 2025 Later

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On 27 March 2020, Cargotec updated its outlook for

2020 due to the coronavirus pandemic and related

political decisions and administrative restrictions. In the

current exceptional situation Cargotec estimated that it

is not able to give a guidance for 2020. Cargotec

publishes a new guidance later.

In the second quarter, there are significant challenges in

relation to deliveries and demand.

Cargotec estimates a significant decline in orders, sales,

comparable operating profit and cash flow in the second quarter

compared to Q2/2019

During the first weeks of April 2020, Cargotec’s orders received

have significantly decreased from the comparison period

Due to the challenging operating environment, visibility towards

the end of the year is currently weak.

June 2020Investor presentation 50

Outlook for 2020

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Service sales growth on track towards our targets

June 2020Investor presentation 51

44%

38%

10%

7%

Spare parts Maintenance

Fleet management Upgrade projects

43%

24%

16%

12%5%

Spare parts Maintenance

Installations Accessories

Used equipment

54%31%

8%

6%1% 1%

Spare parts Maintenance

Running supply Projects

Cargo Boost RoRo conversions

Cargotec service sales totalled EUR 1,062 million in 2019

Spare parts the biggest category, around 47% of total service sales

Maintenance around 31% of total service sales

MEUR 2019

Service orders received 473

Service sales 464

Kalmar

MEUR 2019

Service orders received 336

Service sales 343

Hiab

MEUR 2019

Service orders received 271

Service sales 255

MacGregor

* Target announced in September 2017

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M&A strategy focusing on bolt-on acquisitions

June 2020Investor presentation 52

M&A focus by business area:

Kalmar

Expand service footprint and software

offering

Hiab

Expand geographical presence, service

and product offering

MacGregor

Focus on distressed assets and

software and intelligent technology

Interest-bearing net debt and gearingMEUR

Key acquisition criteria

• Contribution to 15% ROCE target

• Recurring business

• Increase the potential for services through larger installed base and

increased presence

• Group gearing long term target of 50%

719622

503 472625 586 618

188 180

59%

46%36%

44%54% 57%

0%

20%

40%

60%

0

500

1,000

2014 2015 2016 2017 2018 2019 Q1/2020

Net debt IFRS 16 Lease liability* Gearing-%

*Cargotec adopted the IFRS 16 standard on 1 Jan 2019.

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53

TTS acquisition completed

Overview of the acquired

business

AcquisitionStrategic rationale

Service growth potential

Strengthening MacGregor’s

position also in China

Based on revised estimates,

potential cost synergies are

estimated to be around

EUR 25-30 million on annual

level

Employs ca. 600 people

Services 26% of revenues

Consolidated sales in 2019

EUR 50 million and

operating profit at break-even level

(1.8-31.12.2019)

Acquired businesses represent

around 90% of total sales of the

TTS Group

Announced enterprise value

EUR 87 million

Acquisition was completed on

31 July 2019

TTS results have been

consolidated into MacGregor's

financial figures as of 1 August

2019

June 2020Investor presentation

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TTS product portfolio

RoRo, Cruise & NavyContainer, Bulk &

Tank Vessels

Multipurpose &

General CargoOffshore Vessels Services

June 2020 54Investor presentation

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WHY

Investments in common systems as enabler

EUR ~600 million addressable indirect cost base

WHAT

Reductions in indirect purchasing spend (EUR 30 million), and more

efficient support functions (EUR 20 million)

HOW

Central procurement organization to drive indirect procurement cost and

efficiency

Support function services centre in Sofia, Bulgaria officially opened 30

January 2018

Automation in Finance, HR, information management and procurement

RESULTS

EUR 44 million savings realised since beginning of the programme in 2017

The remaining part of the savings is expected to be achieved in Q2-

Q4/2020

June 2020Investor presentation 55

Group wide EUR 50 million cost savings programme proceeding faster than expected

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Our target is to reach 10% EBIT

June 2020 56

2019 EBIT*

7.2%

Service &

Software

Kalmar &

Hiab

equipment

growth

Growth in

Kalmar’s

large

projects and

MacGreqor

equipment

Continuing

innovations

(R&D investments)

Improve cost

efficiency,

leveraging

sales

~10%

EBIT target

~1-2%

~0-1%~0.5-1% ~0%

~1-2%

Investor presentation

Target announced in September 2017, target to be reached in 3-5 years

*Comparable operating profit

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Dividend of up to 1.20 EURCargotec’s AGM held on 27 May 2020 approved that :

The dividend will be paid in two instalments.

The first instalment is EUR 0.60 per B class share and was paid directly based on the decision of the AGM

The Board of Directors are authorised to decide on the distribution of the possible second instalment, which would

be maximum EUR 0.60 per B class share

Calculated from EPS excl. items affecting comparability, payout ratio for 2019 is 55%**.

Payout ratio

1.11

2.21

1.952.05

1.66

1.39

0.55

0.800.95

1.05 1.101.20

0.00

0.50

1.00

1.50

2.00

2.50

2014 2015 2016 2017* 2018 2019

EPS (reported) Dividend

2.50

50%

36%49%

51%

* 2017 EPS figure has been restated according to IFRS 15

** Maximum

86%

57

**

66%

June 2020Investor presentation

2.00

1.50

1.00

0.50

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Appendix 1. Largest shareholders and financials

2. Sustainability

3. Kalmar

4. Hiab

5. MacGregor

5858

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14.1 %

12.3 %

10.7 %

3.0 %

59.9 %

Wipunen varainhallinta Oy Mariatorp Oy

Pivosto Oy KONE Foundation

Others

June 2020Investor presentation 59

Largest shareholders31 May 2020

% of shares % of votes

1. Wipunen varainhallinta Oy 14.1 23.7

2. Mariatorp Oy 12.3 22.9

3. Pivosto Oy 10.7 22.2

4. KONE Foundation 3.0 5.5

5. Ilmarinen Mutual Pension Insurance

Company

2.2 0.9

6. Varma Mutual Pension Insurance

Company

1.5 0.6

7. The State Pension Fund 1.2 0.5

8. Elo Mutual Pension Insurance

Company

1.2 0.5

9. Mandatum Life Insurance Company

Ltd.

0.9 0.4

10. Herlin Heikki Juho Kustaa 0.6 0.3

Nominee registered and non-Finnish

holders

23.73

Total number of shareholders 35,778

Wipunen varainhallinta Oy is a company controlled by Ilkka Herlin, Mariatorp Oy

a company controlled by Heikki Herlin and Pivosto Oy a company controlled by Ilona Herlin.

% of shares

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June 2020Investor presentation 60

Examples of our wide equipment offering

Terminal tractor Container handler

Reachstacker Straddle carrier

Forklift truck Automatic stacking crane

Truck-mounted forklift

Hooklift, Skiploader Taillift

Loader crane

Recycling and forestry cranes Mooring systemsDeck machinery

Offshore load handlingHatch covers,

container lashings

Marine self-unloadersCranes

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Capital expenditure

0

20

40

60

80

100

120

140

160

2013 2014 2015 2016 2017 2018 2019**

Capex Customer financing Depreciation*

Research and development

0.0%

0.6%

1.2%

1.8%

2.4%

3.0%

0

20

40

60

80

100

120

2013 2014 2015 2016 2017 2018 2019

R&D expenditure % of sales

June 2020Investor presentation 61

Capex and R&D

*) Including amortisations and impairments

**) depreciation increased due to IFRS 16 implementation

Main capex investments:

Kalmar innovation centre in Ljungby, Sweden

Investments in multi-assembly units in Kalmar and Hiab

Intangible assets, such as global systems to improve efficiency

in operational activities and support functions

R&D investments focused on

Digitalisation

Competitiveness, cost efficiency and eco-efficiency of products

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June 2020Investor presentation

62

Well diversified geographical sales mix

(33)

49%

20%

31%

EMEA APAC Americas

48%

18%

34%

EMEA APAC Americas

2019MEUR

3,683

United States, 28%

Germany, 7%

China, 5%

United Kingdom, 5%France, 5%

Netherlands, 4%

Sweden, 4%

Australia, 3%

Korea, Republic of, 3%

Norway, 3%

Rest of the world, 33%

2018MEUR

3,304

Top-10 countries by customer location

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June 2020Investor presentation 63

Sales by geographical segment by business area 2019

46%

17%

37%

EMEA APAC Americas

54%

8%

38%

EMEA APAC Americas

40%

46%

14%

EMEA APAC Americas

Year 2017 figures have been restated according to IFRS 15

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June 2020Investor presentation 64

Cargotec’s R&D and assembly sites

Americas

• North America

• Ottawa, Kansas (Kalmar prod.)

• Oakland, California (Kalmar R&D)

• Tallmadge, Ohio (Hiab prod.)

• South America

• Santo Antonio da Patrulha, Brazil

(Hiab prod.)

EMEA

• Arendal, Norway (MacGregor R&D)

• Argelato, Italy (Hiab/Effer)

• Averøy, Norway (Macgregor prod + R&D)

• Kristiansand, Norway (MacGregor R&D)

• Dundalk, Ireland (Hiab prod. + R&D)

• Witney, UK (Hiab prod.)

• Whitstable, UK (MacGregor prod.)

• Zaragoza, Spain (Hiab prod.)

• Uetersen, Germany

(MacGregor prod. + WS + R&D)

• Schwerin, Germany (MacGregor prod.)

• Stargard Szczecinski, Poland

(Kalmar + Hiab prod.)

• Bispgården, Sweden (Hiab prod.)

• Örnsköldsvik, Sweden

(MacGregor WS + WH + R&D)

• Hudiksvall, Sweden (Hiab R&D)

• Kaarina, Finland (MacGregor R&D)

• Minerbio, Italy (Hiab/Effer)

• Raisio, Finland (Hiab prod.)

• Statte, Italy (Hiab/Effer)

• Tampere, Finland (Kalmar WS + R&D)

• Ljungby, Sweden (Kalmar R&D)

APAC

• Chungbuk, South Korea

(Hiab prod.)

• Bangalore, India

(Kalmar prod. + R&D)

• Chennai, India (Navis–Kalmar

R&D)

• Ipoh, Malaysia (Bromma prod.)

• Shanghai, China

(Kalmar prod. + WH)

• Busan, South Korea

(MacGregor prod.)

• Singapore, (R&D)

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Comparable operating profit development

June 2020 65

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

0

20

40

60

80

100

120

140

160

180

200

Kalmar

Comparable EBIT EBIT-%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

0

20

40

60

80

100

120

140

160

180

Hiab

Comparable EBIT EBIT-%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

-60

-40

-20

0

20

40

60

80

MacGregor

Comparable EBIT EBIT-%

Investor presentation

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Sales and orders received development

June 2020 66Investor presentation

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2,200

Kalmar

Sales Orders received

Order book

0

200

400

600

800

1,000

1,200

1,400

Hiab

Sales Orders received

Order book

0

200

400

600

800

1,000

1,200

1,400

MacGregor

Sales Orders received

Order book

MEUR MEUR MEUR

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67

Gross profit development

583634

787840 852 814

873 857

18.3 % 18.9 %

21.1 %

23.9 %

26.2 %

24.6 %23.7 % 23.2 %

0.0 %

3.0 %

6.0 %

9.0 %

12.0 %

15.0 %

18.0 %

21.0 %

24.0 %

27.0 %

30.0 %

0

100

200

300

400

500

600

700

800

900

1,000

2013 2014 2015 2016 2017 2018 2019 Q1/20 LTM

Gross profit, MEUR Gross profit-%

June 2020Investor presentation

MEUR

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186

151

57

115

271

158

191

0

50

100

150

200

250

300

2014 2015 2016 2017 2018 2019 Q1/20

June 2020Investor presentation 68

Net working capital increased due to increased inventories

MEUR

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June 2020Investor presentation 69

Cash flow from operations development

181204

315

373

253

126

361 353

0

50

100

150

200

250

300

350

400

2013 2014 2015 2016 2017 2018 2019 Q1/20 LTM

MEUR Cash flow from operations before financing items and taxes

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Income statement Q1 2020

Investor presentation 70June 2020

MEUR Q1/20 Q1/19 2019

Sales 858.3 855.9 3,683.4

Cost of goods sold -668.2 -649.5 -2,810.3

Gross profit 190.1 206.3 873.1

Gross profit, % 22.1% 24.1% 23.7%

Other operating income 10.6 8.7 33.5

Selling and marketing expenses -57.2 -60.8 -238.4

Research and development expenses -29.6 -25.0 -105.6

Administration expenses -67.2 -63.9 -269.3

Restructuring costs -6.4 -5.7 -80.1

Other operating expenses -13.2 -7.8 -33.8

Costs and expenses -163.2 -154.5 -693.7

Share of associated companies’ and joint

ventures’ net income -0.4 -0.8 0.6

Operating profit 26.5 51.0 180.0

Operating profit, % 3.1% 6.0% 4.9%

Financing income and expenses -6.8 -8.3 -34.1

Income before taxes 19.7 42.8 145.9

Income before taxes, % 2.3% 5.0% 4.0%

Income taxes -8.4 -11.8 -56.5

Net income for the period 11.3 31.0 89.4

Net income for the period, % 1.3% 3.6% 2.4%

Equity holders of the parent 11.4 30.9 89.4

Non-controlling interest -0.1 0.1 0.0

Total 11.3 31.0 89.4

Earnings per share, EUR 0.18 0.48 1.39

Diluted earnings per share, EUR 0.18 0.48 1.39

Net income for the period attributable to:

Earnings per share for profit attributable to

the equity holders of the parent:

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Balance sheet 31 March 2020

Investor presentation 71June 2020

ASSETS, MEUR

31 Mar

2020

31 Mar

2019

31 Dec

2019

Non-current assets

Goodwill 1,019.5 1,004.0 1,058.5

Other intangible assets 284.8 267.9 296.1

Property, plant and equipment 471.5 474.3 489.7

Investments in associated companies and joint

ventures 115.1 102.7 120.8

Share investments 0.3 0.3 0.3

Loans receivable and other interest-bearing assets* 27.1 35.7 29.1

Deferred tax assets 130.3 140.7 131.2

Derivative assets 0.0 - -

Other non-interest-bearing assets 9.7 9.5 10.3

Total non-current assets 2,058.3 2,035.1 2,136.0

Current assets

Inventories 760.7 737.9 713.0

Loans receivable and other interest-bearing assets* 1.6 1.3 1.3

Income tax receivables 23.4 43.7 24.1

Derivative assets 28.7 4.2 8.5

Accounts receivable and other non-interest-bearing

assets 860.7 854.1 924.3

Cash and cash equivalents* 281.3 151.3 420.2

Total current assets 1,956.4 1,792.5 2,091.4

EQUITY AND LIABILITIES, MEUR

31 Mar

2020

31 Mar

2019

31 Dec

2019

Equity attributable to the equity holders of the

parent

Share capital 64.3 64.3 64.3

Share premium account 98.0 98.0 98.0

Translation differences -77.4 -19.2 -33.2

Fair value reserves -15.6 -12.0 -9.1

Reserve for invested non-restricted equity 57.4 57.4 57.4

Retained earnings 1,261.3 1,199.3 1,247.1

Total equity attributable to the equity holders of

the parent 1,388.0 1,387.8 1,424.5

Non-controlling interest 2.7 3.2 2.8

Total equity 1,390.7 1,391.0 1,427.3

Non-current liabilities

Interest-bearing liabilities* 924.9 703.6 953.3

Deferred tax liabilities 38.7 26.5 39.1

Pension obligations 106.5 93.0 110.4

Provisions 7.0 8.5 7.0

Derivative liabilities 0.8 - -

Other non-interest-bearing liabilities 63.8 62.0 66.0

Total non-current liabilities 1,141.8 893.6 1,175.8

Current liabilities

Current portion of interest-bearing liabilities* 70.5 280.9 233.0

Other interest-bearing liabilities* 112.3 80.6 38.1

Provisions 103.0 88.3 114.3

Advances received 280.5 204.7 306.3

Income tax payables 22.2 19.6 21.1

Derivative liabilities 23.6 7.5 11.8

Accounts payable and other non-interest-bearing

liabilities 870.0 861.3 899.8

Total current liabilities 1,482.2 1,542.9 1,624.3

Total equity and liabilities 4,014.7 3,827.5 4,227.4

*Included in interest-bearing net debt.

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Net cash flow from investing activities

Acquisitions of businesses, net of cash acquired -7.7 -3.4 -109.5

Disposals of businesses, net of cash sold - - 0.3

Cash flow from investing activities, other items -10.3 -17.1 -41.4

Net cash flow from investing activities -18.0 -20.5 -150.6

Net cash flow from operating activities

Net income for the period 11.3 31.0 89.4

Depreciation, amortisation and impairment 31.7 28.0 133.8

Other adjustments 20.8 20.5 87.4

Change in net working capital -41.0 -48.6 50.4

Cash flow from operations before financing items and

taxes 22.8 31.0 361.1

Cash flow from financing items and taxes -21.4 -28.9 -57.6

Net cash flow from operating activities 1.4 2.0 303.5

Cash flow statement Q1 2020

Investor presentation 72June 2020

MEUR Q1/20 Q1/19 2019

Net cash flow from financing activities

Treasury shares acquired - -2.2 -2.2

Repayments of lease liabilities -10.4 -9.4 -45.5

Proceeds from long-term borrowings - - 298.1

Repayments of long-term borrowings -183.0 -75.4 -168.3

Proceeds from short-term borrowings 75.5 40.0 271.6

Repayments of short-term borrowings -10.4 - -257.8

Profit distribution - -35.4 -71.0

Net cash flow from financing activities -128.4 -82.3 24.9

Change in cash and cash equivalents -145.0 -100.8 177.8

Cash and cash equivalents, and bank overdrafts at the

beginning of period 409.8 225.5 225.5

Effect of exchange rate changes -4.3 0.0 6.6

Cash and cash equivalents, and bank overdrafts at

the end of period 260.6 124.7 409.8

Bank overdrafts at the end of period 20.7 26.6 10.4

Cash and cash equivalents at the end of period 281.3 151.3 420.2

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Sustainability

June 2020Investor presentation 73

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We serve an industry, which

produces the majority of emissions

as well as GDP in the world- Inefficient industry with potential to improve

Our vision to be the leader in

intelligent cargo handling also

drives sustainability- Increasing efficiency and life-time solutions

We are in a position to be the global

frontrunner, setting the sustainability

standards for the whole industry- We are ready to shape the industry to one that is more sustainable

Sustainability is a great business opportunity

June 2020 74

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Sea Freight Transport is by far the most sustainable transport mode in terms of emissions

by trains, sea freight emits

~2-3 times less emissions

June 2020Investor presentation 75

by trucks, sea freight emits

~3-4 times less emissions

by air cargo, sea freight emits

~14 times less emissions

Compared to transportation of goods

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Offering for eco-efficiency product group sales account for 21% of the total revenue in 2019

June 2020Investor presentation 76

Mitigating climate change with low carbon solutions for customers is a gret opportunity for us

Systems

efficiency

Efficiency for

environmental industries

Emission

efficiency

Resource

efficiency

Visibility to identify inefficient use of

resources and fuel

Software and design system

Offering to support the operations in

environmental industries

Cargotec solutions for environmental

industries

Technology to enable fuel and

emission efficient offering

Products with features to decrease

fuel usage and avoidance of

maritime hydraulic oil emissions

Service enabling the extended

usage of products or new

applications

Product conversions and

modernisations

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Key to more sustainable cargo handling business is solution development

~2.5 mil barrels (1.8 mil tonnes CO2e) of fuel

savings enabled by Cargotec port equipment

solutions during past 6 to 10 years For moving

empty containers

19 mil tonnes

CO2e in shipping

industry annually

Waste in cargo handling business due to

inefficiencies ~17 billion euros

emissions from Cargotec sites

annually

June 2020 77Investor presentation

~50 000

tonnes CO2e

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Cargotec signed the UN Global Compact in 2007 and we

firmly believe that we are advancing especially the six UN

Sustainable Development Goals

We have a clear governance on sustainability issues with

Board of Directors overview on the subject

Climate solutions and safety remain the key sustainability

focus areas

We continue to focus on safety improvement programs to

further decrease our current IIFR rate of 6.9

Strategy formulation for managing climate-related risks

and opportunities initiated with plan to have it defined and

implemented by the end of 2020

Cargotec sustainability managed with clear policies, processes and KPIs on varying areas

78

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June 2020 79

Performance highlights 2019

All new direct material

suppliers have been

audited against Cargotec

Supplier Criteria

89 percent of direct

sourcing spend covered

by Supplier Code of

Conduct

Offering for eco-efficiency

21% of total sales

Code of Conduct panel

and case investigation

process in place

Investor presentation

33% of our electricity use

from certified renewable

sources

93 percent of the strategic

suppliers were invited to the

sustainability self-

assessment tool process

Strategy formulation for

managing climate-related

risks and opportunities

initiated

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Kalmar appendix

June 2020Investor presentation 80

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Total Capacity MTEU

The current replacement market size for key terminal equipment is EUR 1 billion annually and the market is expected to double in the next decade

0

200

400

600

800

1,000

1,200

1,400

e1995

e1996

e1997

e1998

e1999

e2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

f20

19

f20

20

f20

21

f2022

f20

23

Replacement after lifetime of equipment

The replacement market will

grow in coming years, as the

container terminal capacity has

expanded significantly during

the last two decades.

Average lifetime of

type of equipment:

STS - 25 yrs

RTG -15 yrs

SC - 8-10 yrs

RS/ECH/TT – 8 yrs

Source: Drewry reports: Global Container Terminal Operators 2001-2016 Note: 1995-2000 capacity is estimation based on the assumption that the utilisation rate has been between 70-

72% in that period. 2019-2023 forecast based on Drewry’s Global container terminal operators report, published in Q4/2019

June 2020Investor presentation 81

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Global/international terminal operators' capacity development, 2018-2023 (MTEU)

June 2020Investor presentation 82

Global container terminal operators – Most capacity expected to be added by Cosco

0.0 20.0 40.0 60.0 80.0 100.0 120.0 140.0 160.0

China Cosco Shipping *

PSA International

Hutchison Ports

APM Terminals

DP World

Terminal Investment Limited

China Merchants Ports

CMA CGM **

ONE ***

NYK #

MOL #

K Line #

Eurogate

SSA Marine

ICTSI

Evergreen

Hyundai

HHLA

Yildirim/Yilport

Bollore Ports

Yang Ming

SAAM Puertos

2018 2023

Source: Drewry Maritime Research

* Cosco figure includes OOCL terminals

** CMA CGM includes APL terminals

*** International terminals of NYK, K Line and MOL are due to be combined as part of ONE merger

# Japanese terminals only from 2019 onwards

Hutchison figure includes HPH Trust terminals

TIL figure does not include MSC/affiliated companies

Figures include total capacity for all terminals in which shareholding held (regardless of size of shareholding)

Figures do not include capacity related to stevedoring operations at common user terminals and also exclude barge/river terminals

Figures based on confirmed expansion plans only

Some double counting occurs where joint ownership/management structures exist

Figures for each operator do not include capacity of other operators in which stakes are held

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June 2020Investor presentation 83

Global container throughput and capacity development

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

0

200

400

600

800

1000

1200

1400

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 f2019 f2020 f2021 f2022 f2023

Throughput, MTEU Capacity, MTEU Utilisation rate

Sources:

Throughput: Drewry container forecaster Q4/19

Capacity: Drewry Annual Global container terminal review 2019

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June 2020Investor presentation 84

60% of global container throughput is expected to take place in APAC in 2020

APAC 477 mteu

(60% of total)EMEA 203 mteu

(25% of total)

AMER 177 mteu

(15% of total)

Global container throughput expected

to decrease 0.5% in 2020

APAC -0.2% (-1 mteu)

EMEA -1.3% (-3 mteu)

AMER -0.3% (-0 mteu)

Drewry states that its scenario is not a

”worst-case” COVID-19 scenario and that a

more significant decrease is possible

Source: Drewry container forecaster Q4 2019

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Shipping line Alliance/ Vessel sharing agreement (VSA)

Maersk

P3 (denied)2M 2M

MSC

CMA CGM

Ocean Three

Ocean Alliance

China ShippingChina Shipping/ UASC

UASC

NYK

Grand Alliance

G6 Alliance

OOCL (acquisition ongoing)

Hapag-Lloyd

APL

New World AllianceMOL

Hyundai

Cosco

CKYH AllianceCKYH Alliance The Alliance

China Cosco

Shipping

K Line

Yang Ming

Ocean Network

Express

Hanjin

EvergreenIndependent

Hamburg Sud

Total: 17(9 after further

consolidations)

April 2017

• The arrows indicate changes, confirmed or planned, through M&A or JV over the last 18 months. Hanjin bankrupt. Hyundai isn’t

currently officially part of any alliance, but formed a cooperative relationship with 2M.

• Ocean Network Express (ONE) launch April 2018.

• COSCO Shipping’s planned acquisition of OOCL expected to completed by the end of June

• Analyse excludes Zim, PIL and Wan Hai85

Three alliances controlling about 80% of global container fleet capacity

Sources: Drewry, Alphaliner, Cargotec

June 2020Investor presentation

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• The largest containership in the fleet has nearly

tripled since 2000

• The average size of new builds doubles between

2009 and 2014

June 2020 86

Ship sizes increasing dramatically

Average newbuilding

delivered in year Largest container ship

in world fleet

Source: Drewry November 2015

Investor presentation

TEU

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Hiab appendix

June 2020Investor presentation 87

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Construction output forecast

88June 2020Investor presentationSource: Oxford construction output (All Output series are measured in Billions, 2015 Prices) December 2019

2017 2018 2019 2020 2021 2017 2018 2019 2020 2021

NAM 1.2% -0.5% -0.8% -0.3% -0.2% NAM 2.6% 2.0% -0.1% 2.2% 2.1%

SAM 0.3% 0.4% -1.2% -1.8% -1.0% SAM -3.3% -1.4% -2.1% 0.9% 2.4%

NE -0.2% -0.3% -1.6% -0.1% -0.1% NE 2.5% 5.1% 1.4% 1.9% 1.8%

UK -0.7% -0.7% -0.2% -1.3% -0.3% UK 6.7% 0.1% 2.0% 0.4% 1.4%

DACH -1.9% 0.5% 0.5% -0.6% -0.2% DACH 1.0% 3.3% 2.7% 0.9% 1.1%

BENELUX 2.0% 1.2% -0.8% -0.6% -0.1% BENELUX 5.1% 6.3% 4.4% 0.9% 1.3%

MED -0.4% -0.9% 0.6% -0.6% -0.1% MED 2.9% 2.1% 2.9% 1.7% 2.0%

EE 0.1% -1.3% 2.4% -0.1% -0.1% EE 4.7% 10.6% 6.7% 3.0% 2.9%

MEA 0.3% -0.2% 0.0% -0.2% -0.2% MEA 2.1% -2.1% -0.1% 2.7% 3.7%

APAC 0.0% 0.0% -1.1% -0.3% 0.3% APAC 3.8% 4.1% 3.4% 3.6% 4.4%

Total 0.2% -0.2% -0.7% -0.5% 0.0% Total 2.8% 2.7% 1.9% 2.5% 3.1%

Percentage point change vs last forecast YoY changes

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MacGregor appendix

June 2020Investor presentation 89

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Merchant ships: Contracting forecast by shiptype (no of ships)Merchant ship types > 2000 gt excl offshore and misc, base case

June 2020 90Investor presentationSource: Clarkson Research, March 2020

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Merchant ships: Deliveries forecast by shiptype (no of ships)Merchant ship types > 2000 gt excl offshore and misc, base case

June 2020 91Investor presentationSource: Clarkson Research, March 2020

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Offshore mobile units: Contracting forecast by shiptype (number of units)

June 2020Investor presentation 92Source: Clarkson Research, March 2020

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Offshore mobile units: Deliveries forecast by shiptype (numberof units)

Investor presentation 93June 2020Source: Clarkson Research, March 2020

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Shipbuilding – contracting ships >2000 gt/dwt

June 2020Investor presentation 94Source: Clarkson Research, January 2020

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Shipbuilding capacity and utilisation scenarioCapacity projected to reach low at end 2022

Investor presentation June 2020Source: Clarkson Research, March 2020 95

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Shipping – The world fleetWorld fleet comprises currently roughly 97,000 ships

Investor presentation June 2020Source: Clarkson Research, March 2020 96

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World fleet and order book developmentWorld fleet growth slowing; orderbook at historically low level at ~10% of the sailing fleet

Investor presentation June 2020Source: Clarkson Research, March 2020 97

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Environmental regulation continues to accelerateShipping decarbonisation high on the agenda

Investor presentation 98

EEDI phase 3 requirements brought

forward to 2022 for gas carriers,

general cargo ships and containerships

June 2020Source: Clarkson Research, March 2020

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Blue Growth, aquaculture and offshore wind energyoffer us new interesting growth opportunities

Seaborne

logistics

Marine bio-

technology

Marine and

seabed mining

Tourism Fishing Aquaculture Offshore

oil and gas

Offshore

wind energy

Ocean

renewable

energy

Traditional

Core

New

Growth

New

Growth

New

Growth

New

Growth

New

Growth

Traditional

Core

New

Growth

New

Growth

June 2020Investor presentation 99

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Disclaimer

June 2020Investor presentation 100

Although forward-looking statements contained in this presentation are based upon what

management of the company believes are reasonable assumptions, there can be no

assurance that forward-looking statements will prove to be accurate, as actual results and

future events could differ materially from those anticipated in such statements. These

statements are not guarantees of future performance and undue reliance should not be placed

on them. The company undertakes no obligation to update forward-looking statements if

circumstances or management’s estimates or opinions should change except as required by

applicable securities laws.

All the discussion topics presented during the session and in the attached material are still in

the planning phase. The final impact on the personnel, for example on the duties of the

existing employees, will be specified only after the legal requirements of each affected

function/ country have been fulfilled in full, including possible informing and/or negotiation

obligations in each function / country.

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101


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