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Results Q2/2006 1 Q2: STRONG GROWTH AND MARGIN IMPROVEMENT CONTINUES 3 August, 2006 Pekka Lundmark, President & CEO
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Results Q2/2006 2 Highlights Q2/06 Strong Growth and Margin Improvement Continued Second quarter order intake set a new record: 369.2 MEUR H1/2006 orders 701.9 MEUR (growth 41.4 %, organic 21.7 %) H1/2006 sales 636.6 MEUR (growth 48.9 %, organic 28.7 %) H1/2006 operating profit (EBIT) 35.0 MEUR (13.9 MEUR) H1 EBIT margin improved to 5.5 % (3,2 %), Q2 margin to 6.2 % (3,8 %) H1 net income was 20.7 MEUR (-0.6 MEUR) and EPS 36 cents (-1 cent) Acquisition of MMH Holdings, Inc completed and integrated 1 June, 2006 Full year sales growth expectation raised from “over 35%” to “40-45%”
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Results Q2/2006 3 Orders Received 0 50 100 150 200 250 300 350 400 Q1/02 Q2/02Q3/02Q4/02Q1/03Q2/03Q3/03Q4/03Q1/04 Q2/04 Q3/04Q4/04Q1/05Q2/05Q3/05Q4/05Q1/06Q2/06 Meur
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Results Q2/2006 4 0 100 200 300 400 500 600 700 Q1/2002Q2/2002Q3/2002Q4/2002 Q1/2003Q2/2003 Q3/2003Q4/2003Q1/2004Q2/2004Q3/2004Q4/2004Q1/2005Q2/2005Q3/2005Q4/2005 Q1/2006Q2/2006 Order Book Meur
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Results Q2/2006 5 Maintenance ServicesSpecial Cranes Standard Lifting Equipment Order Book by Business Area 0 100 200 300 400 500 600 700 Q1/05Q2/05Q3/05Q4/05Q1/06Q2/06 MEUR
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Results Q2/2006 6 Pierre Boyer (46), graduate from HEC, France President, Region EMEA and member of the KCI Konecranes Executive Board effective 1 Sept, 2006 Currently head of Carrier Corporation’s Refrigeration operations in the Nordic, Netherlands and EMEA areas New President, Region EMEA Appointed
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Results Q2/2006 7 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
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Results Q2/2006 8 Paul Lönnfors (43), B.Sc. (Econ.) Investor Relations Manager effective as of 1 Sept, 2006 Currently Communications & IR Manager at KONE Corporation New Investor Relations Manager Appointed
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Results Q2/2006 9 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.
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Results Q2/2006 10 Coil Handling Crane Nuclear Dome Crane Hot Metal Ladle Crane Acquisition of MMH Holdings, Inc. Complements the Offering Good position in Steel, Nuclear Power and Wood Handling
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Results Q2/2006 11 Net Sales
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Results Q2/2006 12 EBIT EBIT Margin Operating Profit and Margin
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Results Q2/2006 13 LTM Sales LTM EBIT Margin LTM Sales and Operating Margin
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Results Q2/2006 14 Note: Sales numbers include internal sales Service Heavy Lifting Standard Lifting LTM2005 Sales Split by Business Area, %
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Results Q2/2006 15 LTM 2005 Americas Asia-Pacific EU (w/o Nordic) Nordic & Eastern Europe Sales by Market Area, %
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Results Q2/2006 16 OEM crane builders 4 % Others 5 % Pulp and paper 5 % Power plants 4 % Steel & other warehousing 3 % General Manufacturing 21 % 1 % Refuse Handling Automotive 3 % Primary metals 16 % Shipyards 3 % Resellers 10 % Petrochemical 3 % Construction 2 % Transport, Shipping 6 % Harbours 13 % Aviation, Aerospace 1 % LTM Sales by Industry LTM, %
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Results Q2/2006 17 Sales by Industry LTM, %
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Results Q2/2006 18 Maintenance Services Orders
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Results Q2/2006 19 Growth in Maintenance Contract Base
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Results Q2/2006 20 Maintenance Sales
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Results Q2/2006 21 EBIT EBIT Margin Maintenance Operating Profit and Margin
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Results Q2/2006 22 LTM Sales LTM EBIT Margin Maintenance LTM Sales and Operating Margin
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Results Q2/2006 23 Standard Lifting Equipment Orders 0 20 40 60 80 100 120 140 160 180 Q1/02Q2/02Q3/02Q4/02Q1/03Q2/03Q3/03Q4/03Q1/04Q2/04Q3/04Q4/04Q1/05Q2/05Q3/05Q4/05Q1/06Q2/06 MEUR
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Results Q2/2006 24 Standard Lifting Equipment Sales
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Results Q2/2006 25 EBIT EBIT Margin Standard Lifting Operating Profit and Margin
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Results Q2/2006 26 LTM Sales LTM EBIT Margin Standard Lifting LTM Sales and Operating Margin
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Results Q2/2006 27 Special Cranes Orders
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Results Q2/2006 28 Special Cranes (12 month rolling) Orders
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Results Q2/2006 29 Special Cranes Sales
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Results Q2/2006 30 EBIT EBIT Margin Special Cranes Operating Profit and Margin
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Results Q2/2006 31 LTM Sales LTM EBIT Margin Special Cranes LTM Sales and Operating Margin
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Results Q2/2006 32 Net Income
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Results Q2/2006 33 Return on Capital Employed
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Results Q2/2006 34 Return on Equity
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Results Q2/2006 35 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.
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Results Q2/2006 36 40-45% Growth Growth Expectation Full Year 2006
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Results Q2/2006 37 1-6/2006 MEUR 1-6/2005 MEUR 1-12/2005 MEUR Sales 636.6427.4970.8 Other operating income 0.91.22.2 Depreciation -9.9-7.3-15.6 Other operating expenses -592.6-407.4-908.1 Operating income (EBIT) 35.013.949.3 Share of result of associated companies and joint ventures 0.30.20.5 Financial income and expenses -5.8-15.0-15.8 Income before taxes 29.5-0.934.1 Taxes -8.9*0.3*-10.0 Net income 20.7-0.624.1 Earnings per share, basic (EUR) 0.36-0.010.43 Earnings per share, diluted (EUR) 0.35-0.010.42 * According to estimated tax rate Statement of Income
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Results Q2/2006 38 6/2006 MEUR 6/2005 MEUR 12/2005 MEUR Non-current assets218.3134.0197.6 Inventories218.6152.1157.0 Receivables and other current assets354.5230.6325.4 Cash and cash equivalents40.931.144.0 Total assets832.3547.8724.0 Equity173.3127.1152.1 Non-current liabilities173.556.9106.9 Provisions20.815.820.1 Current liabilities464.7348.0444.9 Total equity and liabilities832.3547.8724.0 Gearing %102.191.388.1 Solidity %24.126.523.7 Equity/share, EUR2.952.252.66 Balance Sheet
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Results Q2/2006 39 MEUR1-6/20061-6/2005 Operating income before change in net working capital44.821.3 Change in net working capital-6.63.4 Cash flow from operations before financing items and taxes38.224.7 Financing items and taxes-12.1-8.3 Net cash flow from operating activities26.116.5 Net cash used in investing activities-56.8-9.4 Cash flow before financing activities-30.77.0 Dividends paid-15.8-14.8 Change in interest bearing debt33.717.2 Proceeds from options excercised10.50 Net cash used in financing activities28.52.4 Translation differences in cash-0.91.0 Change of cash and cash equivalents-3.110.4 Cash Flow Statement
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Results Q2/2006 40 Net Cash Flow from Operating Activities/Share
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Results Q2/2006 41 MEUR 1-6/2006 MEUR 1-6/2005% Change Sales636.6427.448.9 Operating Income (EBIT)35.013.9152.3 Income before taxes29.5-0.9 Net Income20.7-0.6 Net cash flow from operating activities26.116.5 Net cash flow from operating activities per share0.450.29 Net interest bearing debt177.0116.1 Net gearing (%)102.191.3 Solidity (%)24.126.5 Return on capital employed (%), LTM22.615.1 Return on equity (%), LTM30.210.6 Equity per share (EUR)2.952.25 Investments7.77.4 Personnel at end of period7 2564 940 Personnel on average6 4354 81433.7 Key Figures
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Results Q2/2006 42 Pekka Lundmark, President and CEO tel. +358-20 427 2000 or pekka.lundmark@konecranes.com Teuvo Rintamäki, Chief Financial Officer tel.+358-20-427 2040 or teuvo.rintamaki@konecranes.com Paul Lönnfors, Investor Relations Manager tel.+358-20-427 2050 or paul.lonnfors@konecranes.com www.konecranes.com
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