2011 FINANCIAL RESULTS

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1 2011 FINANCIAL RESULTS February 2, 2012 Pekka Lundmark, President and CEO Teo Ottola, CFO 1

HIGHLIGHTS OF Q4/11 Positives Order book of almost EUR 1 billion, best ever at year-end Service orders continued to grow in all regions Reasonably strong sales funnel despite the economic

2 HIGHLIGHTS OF Q4/11 Positives Order book of almost EUR 1 billion, best ever at year-end Service orders continued to grow in all regions Reasonably strong sales funnel despite the economic uncertainties Negatives Continued weak demand for equipment in Western Europe; China weakened too Operating leverage remained relatively modest Board of Directors proposes a dividend of EUR 1.00 per share 2

3 CAPACITY UTILIZATION: EU27 AND USA SOURCES: Eurostat (latest data point Q1/12), Federal Reserve Bank of St. Louis (December 2011) 3

4 CONTAINER TRAFFIC Annual container handling volume Monthly container handling volume SOURCES: Drewry Container Port Insight (latest data point October 2011) 4

5 MARKET OUTLOOK AND FINANCIAL GUIDANCE AS OF FEBRUARY 2, 2012 Market outlook Forecasting the demand continues to be challenging due to the macroeconomic uncertainties. Based on the current offer base, the demand outlook is stable. However, due to the timing of large port crane projects, the quarterly Equipment order intake may fluctuate. Financial guidance Based on the order book, we forecast year 2012 sales and operating profit to be higher than in

6 WORLD S LARGEST GOLIATH CRANE 689 ft. 210 m 384 ft. 117 m 6

7 RESTRUCTURING IN EUROPE Service Restructuring in a number of European countries Closing down unprofitable units, merging operations, personnel reductions and streamlining of administration Reduction of approx. 100 employees by end-q1/12 Cost savings target of EUR7m Restructuring costs of EUR6m in Q4/11 Includes write-downs of EUR2m Equipment Assembly of air balancers in Austria to be combined with Konecranes overall crane component supply chain Industrial Cranes to consolidate its operations in Germany Reduction of approx. 20 employees by end-q4/12 Cost savings target of EUR2m Restructuring costs of EUR4m in Q4/11 Includes write-downs of EUR2m 7

8 ACQUISITIONS IN 2011 Koman Gruas Crane and service company in Chile WMI Cranes One of the leading manufacturers of heavy-duty cranes in India Zeiss Staplerservice Operations of lift truck service company in Austria Schneider Werkzeugmaschinen entry to MTS business in Germany Eleve Service business assets of Spanish company Saudi Cranes Saudi Arabian crane manufacturer ABB Schweiz AG s crane systems business Capex on acquisitions EUR 80.1 million in 2011 Acquisitive impact approximately 4% on orders and sales in

9 MARKET SHARE AND SIZE IN 2011 Machine Tool Service market estimated to be 2x Crane Service market Total market >10 BEUR Open market >3 BEUR Note that market share and size are based on Konecranes estimates as no comprehensive statistics are available. Market size ~10 BEUR Market size ~13 BEUR 9

10 GLOBAL EMPLOYEE SHARE SAVINGS PLAN PROPOSED TO THE AGM The aim is to strengthen the tie between Konecranes shareholders and employees, and to reward the employees for their efforts in working toward Konecranes goals All employees worldwide would be given the opportunity to save a portion of their salary for purchasing Konecranes shares The maximum amount that can be saved for purchasing savings shares is 5 percent of the gross monthly salary for each participant Participation in the plan would be encouraged by offering one free share for every two savings shares after a designated holding period AGM to resolve on the ESSP on March 22, 2012 More details available in the AGM release of February 2,

GROUP ORDERS AND NET SALES Q4 Orders: 473.9 (477.

11 GROUP ORDERS AND NET SALES Q4 Orders: (477.7) MEUR, -0.8% Net sales: (469.4) MEUR, +27.4% 11

12 GROUP ORDER BOOK Q4 Order book: (756.2) MEUR, +31.2% 12

13 GROUP EBIT & MARGIN Q4 EBIT: 47.5 (45.8) MEUR, +3.6% Margin: 7.9% (9.8%), excluding restructuring costs 13

14 GROUP ORDERS RECEIVED 2011 Orders: 1,896.1 (1,536.0) MEUR, +23.4% 14

15 GROUP NET SALES 2011 Net sales: 1,896.4 (1,546.3) MEUR, +22.6% 15

GROUP EBIT & MARGIN 2011 EBIT: 117.2 (115.1) MEUR, +1.

16 GROUP EBIT & MARGIN 2011 EBIT: (115.1) MEUR, +1.8% MARGIN: 6.2% (7.4%), excluding restructuring costs 16

SALES SPLIT BY BUSINESS AREA AND REGION (R12M) 21% (17) FY 2011 1,896

17 SALES SPLIT BY BUSINESS AREA AND REGION (R12M) 21% (17) FY ,896 MEUR 60% (1,546) 40% (57) (43) FY ,896 MEUR 29% (1,546) 50% (30) (53) 17

18 SERVICE 18

SERVICE: ORDERS AND NET SALES Q4 Orders: 183.3 (154.4) MEUR, +18.

19 SERVICE: ORDERS AND NET SALES Q4 Orders: (154.4) MEUR, +18.7% Net sales: (211.3) MEUR, +11.1% New orders grew in all regions and business units 19

20 SERVICE: EBIT AND MARGIN Q4 EBIT: 20.9 (22.1) MEUR, -5.3% MARGIN: 8.9% (10.5%), excluding restructuring costs EBIT margin supported by volume, but still down Y/Y due to higher fixed costs 20

SERVICE: ORDERS AND NET SALES 2011 Orders: 694.6 (605.

21 SERVICE: ORDERS AND NET SALES 2011 Orders: (605.7) MEUR, +14.7% Net sales: (707.8) MEUR, +12.5% 21

22 SERVICE CONTRACT BASE Q4 CB: 410 (376) thousand units, +9.2% annual value (145.7) MEUR, +14.1% 22

23 SERVICE ORDER BOOK Q4 Order book: (103.3) MEUR, +30.9% 23

24 EQUIPMENT 24

EQUIPMENT: ORDERS AND NET SALES Q4 Orders: 316.1 (349.2) MEUR, -9.5% Net sales: 394.4 (288.5) MEUR, +36.

25 EQUIPMENT: ORDERS AND NET SALES Q4 Orders: (349.2) MEUR, -9.5% Net sales: (288.5) MEUR, +36.7% Order intake rose Y/Y in the AME, but fell in the EMEA and APAC Compared to year ago, orders for crane components and lift trucks grew while orders for industrial cranes and port cranes declined against tough comparables 25

26 EQUIPMENT: EBIT AND MARGIN Q4 EBIT: 31.5 (27.4) MEUR, +14.8% MARGIN: 8.0% (9.5%), excluding restructuring costs EBIT margin supported by volume, but still held back by product mix, intense price competition and fixed costs 26

27 EQUIPMENT: ORDERS AND NET SALES 2011 Orders: 1,291.5 (1,004.9) MEUR, +28.5% Net sales: 1,201.4 (948.6) MEUR, +26.6% Note! not based on actual figures, but derived from segment reporting of that time 27

28 EQUIPMENT ORDER BOOK Q4 Order book: (652.9) MEUR, +31.2% 28

29 BALANCE SHEET AND CASH FLOW 29

NET WORKING CAPITAL Q4 NWC: 318.9 (191.6) MEUR 16.8% (12.

30 NET WORKING CAPITAL Q4 NWC: (191.6) MEUR 16.8% (12.4%) of R12M sales * Q1/11 excluding dividend liability of EUR 60 million **Q1/10 excluding dividend liability of EUR 53 million 30

31 CASH FLOW BEFORE FINANCING ACTIVITIES 73.6 MEUR capex on acquisitions in

32 GEARING Q4 Equity: (456.2) MEUR Net debt: (-17.4) MEUR Gearing: 50.1% (-3.8%) 32

33 RETURN ON CAPITAL EMPLOYED *The 2007 ROCE including capital gain was 50.4% 33

34 APPENDIXES 34

35 STATEMENT OF INCOME MEUR % Change Sales 1, , Other operating income Depreciation and impairments Other operating expenses -1, ,406.3 Operating profit Share of associates and joint ventures result Financial income and expenses Profit before taxes Taxes Net profit for the period

36 BALANCE SHEET MEUR December 31, 2011 December 31, 2010 MEUR December 31, 2011 December 31, 2010 Non-current assets Equity Inventories Non-current liabilities Other current assets Provisions Cash and cash equivalents Current liabilities Total assets Total equity and liabilities

37 CASH FLOW STATEMENT MEUR 1-12/ /2010 Operating income before change in net working capital Change in net working capital Financing items and taxes Net cash from operating activities Cash flow from investing activities Cash flow before financing activities Proceeds from options exercised and share issues Purchase of treasury shares Change in interest-bearing debt Dividends paid to equity holders of the parent Net cash used in financing activities Translation differences in cash Change of cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period Change of cash and cash equivalents

38 KEY FIGURES MEUR December 31, 2011 December 31, 2010 % Change Earnings per share, basic, EUR Earnings per share, diluted, EUR Return on capital employed %, R12M Return on equity %, R12M Equity per share, EUR Current ratio Gearing (%) Solidity (%) EBITDA, MEUR Investments total (excl. acquisitions), MEUR Interest-bearing net debt, MEUR Net working capital, MEUR Personnel at end of period 11,651 10,042 16,0 Personnel on average during the period 10,998 9, Average number of shares outstanding, basic 58,981,861 58,922, Average number of shares outstanding, diluted 59,361,905 59,274, Number of shares outstanding 57,198,971 58,959,

THE LARGEST SHAREHOLDERS Largest shareholders on December 31, 2011 Number of shares % of all shares 1 HTT KCR Holding Oy Ab 6,870,568 10.9 2 Varma Mutual Pension Insurance Company 2,940,275 4.

39 THE LARGEST SHAREHOLDERS Largest shareholders on December 31, 2011 Number of shares % of all shares 1 HTT KCR Holding Oy Ab 6,870, Varma Mutual Pension Insurance Company 2,940, Gustavson Stig, Chairman of the Board of Konecranes and family *) 2,069, Market cap EUR 832 million excluding treasury shares 4 Nordea Investment Management 2,050, Ilmarinen Mutual Pension Insurance Company 1,366, The State Pension Fund 917, Mandatum Life Insurance Company Ltd. 792, Nordstjernan Ab 709, Fondita Funds 700, Sigrid Juselius Foundation 638, Konecranes Plc s treasury shares 6,042, Nominee registered shares 18,458, Other shareholders 19,685, Total number of shares 63,241, *) Konecranes Plc has on December 28, 2011 received information according to which the Chairman of the company s Board of Directors Stig Gustavson has donated all of his shares in Konecranes Plc to his near relatives retaining himself for life the voting rights and right to dividend attached to the donated shares. The donation encompasses in total 2,069,778 shares which corresponds to approximately 3.27 percent of all of the company s shares and voting rights. Trading information Listing: NASDAX OMX Helsinki Date of listing: March 27, 1996 Segment: Large Cap Sector: Industrials Trading code: KCR1V 1 12/11 average daily trading volume 496,544 shares, EUR 11.3 million 39

40 CONTACT INFORMATION Pekka Lundmark, President and CEO Tel (0) Teo Ottola, Chief Financial Officer Tel.+358 (0) Miikka Kinnunen, Director, Investor Relations Tel (0) Anna-Mari Kautto, Assistant, Investor Relations Tel (0)

41 THANK YOU! 41

Strong order intake, Service result continued to improve, Equipment result weak. Interim Report January March 2015

Strong order intake, Service result continued to improve, Equipment result weak Q1 2 Strong order intake, Service result continued to improve, Equipment result weak Figures in brackets, unless otherwise