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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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Presentation on theme: "Results Q2/2006 1 Q2: STRONG GROWTH AND MARGIN IMPROVEMENT CONTINUES 3 August, 2006 Pekka Lundmark, President & CEO."— Presentation transcript:

1 Results Q2/2006 1 Q2: STRONG GROWTH AND MARGIN IMPROVEMENT CONTINUES 3 August, 2006 Pekka Lundmark, President & CEO

2 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%”

3 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

4 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

5 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

6 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

7 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

8 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

9 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.

10 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

11 Results Q2/2006 11 Net Sales

12 Results Q2/2006 12 EBIT EBIT Margin Operating Profit and Margin

13 Results Q2/2006 13 LTM Sales LTM EBIT Margin LTM Sales and Operating Margin

14 Results Q2/2006 14 Note: Sales numbers include internal sales Service Heavy Lifting Standard Lifting LTM2005 Sales Split by Business Area, %

15 Results Q2/2006 15 LTM 2005 Americas Asia-Pacific EU (w/o Nordic) Nordic & Eastern Europe Sales by Market Area, %

16 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, %

17 Results Q2/2006 17 Sales by Industry LTM, %

18 Results Q2/2006 18 Maintenance Services Orders

19 Results Q2/2006 19 Growth in Maintenance Contract Base

20 Results Q2/2006 20 Maintenance Sales

21 Results Q2/2006 21 EBIT EBIT Margin Maintenance Operating Profit and Margin

22 Results Q2/2006 22 LTM Sales LTM EBIT Margin Maintenance LTM Sales and Operating Margin

23 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

24 Results Q2/2006 24 Standard Lifting Equipment Sales

25 Results Q2/2006 25 EBIT EBIT Margin Standard Lifting Operating Profit and Margin

26 Results Q2/2006 26 LTM Sales LTM EBIT Margin Standard Lifting LTM Sales and Operating Margin

27 Results Q2/2006 27 Special Cranes Orders

28 Results Q2/2006 28 Special Cranes (12 month rolling) Orders

29 Results Q2/2006 29 Special Cranes Sales

30 Results Q2/2006 30 EBIT EBIT Margin Special Cranes Operating Profit and Margin

31 Results Q2/2006 31 LTM Sales LTM EBIT Margin Special Cranes LTM Sales and Operating Margin

32 Results Q2/2006 32 Net Income

33 Results Q2/2006 33 Return on Capital Employed

34 Results Q2/2006 34 Return on Equity

35 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.

36 Results Q2/2006 36 40-45% Growth Growth Expectation Full Year 2006

37 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

38 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

39 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

40 Results Q2/2006 40 Net Cash Flow from Operating Activities/Share

41 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

42 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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