18 November

2014

Kalmar profit improvement is proceeding as planned

Olli Isotalo

President, Kalmar

1. Status of Kalmar

profitability development

2. Kalmar must-win battles

Mobile Equipment

Services

Automation

3. Conclusions

18 Nov 2014 2

Clear progress in Kalmar profitability

development

3.9 7.0

16.0 15.6

25.5

11.2

-19.4

30.7

0.9 2.2

3.9 4.4 5.5

3.4

-6.0

8.0

-30

-20

-10

0

10

20

30

40

Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14

Operating profit excl. restructuring costs Operating profit %

MEUR

18 Nov 2014 3

%

20

15

10

5

0

-5

-10

-15

Improvements in design-to-cost

Kalmar is on track with profit

improvement initiatives

2012 2013 2014

Organisational efficiency and refocused R&D

Development of service business

Ramp-up of production in Rainbow Cargotec Industries joint venture

Further development of integrated port automation solutions

Improvements in design-to-cost

We are on

track with 40M

run rate

improvement

Kalmar

Care

contracts

won

Supply footprint development

Project delivery capability development Forklifts

moved to

Cibolo in

NA

New

products

launched

51M cost-

overruns in

STS

projects

No cost

overruns

from

automation

projects

VICTL

contract

Good order

intake for

RTGs

18 Nov 2014 4

Kalmar Profit Improvement Programme

18 Nov 2014 5

Supply

footprint

and design-

to-cost

2015

2014

Sourcing Sales/

Service

network

Pricing Spare

parts

Total

savings

(2014

impact)

Supply

footprint

and design-

to-cost

Automation

and

Projects

Division

Sales/

Service

network

Total

savings

(2015

impact)

Spare

parts

Pricing Sourcing

Bromma

spreaders Navis TOS

Automation

STS cranes ASCs

Straddle

carriers

Siwertell

RTGs

Shuttle

carriers

Maintenance Crane upgrades

Fleet management Spare parts

Empty container

handlers Reachstackers

Forklift trucks Terminal tractors

Kalmar business mix has changed

Terminal projects

30% Equipment

42% Services

28%

18 Nov 2014 6

Must-win battle:

How to secure competitiveness of

Mobile Equipment

New Kalmar Ottawa T2 distribution tractor

strengthens our market position in Americas

Innovative, operator-

friendly design

Safety enhancements and

easier maintenance and

serviceability

Profit improvement

initiatives integrated

– Design-to-cost

– Sourcing

– Improved pricing power

Excellent launch and

market acceptance

All time record in order

intake and production

Market share growing

18 Nov 2014 8

New G-generation electric forklift

launched for industrial customers

18 Nov 2014 9

Energy efficient and highly

environmentally friendly

product

Equally high performing as

powerful diesel trucks

Reduced total cost of

ownership

Profit improvement

initiatives integrated

– Design-to-cost

– Sourcing

– Improved pricing power

Kalmar Gloria reachstacker enters

Asia and Americas

High-end product developed based on

customer values

Differentiation against low-cost

competition

Profit improvement initiatives

integrated

– Design-to-cost

– Sourcing

– Improved pricing power

Meeting customer requirements in

emerging markets with specialised

offering: T-models a success in APAC,

now entering also Middle East, Africa

and Latin America

18 Nov 2014 10

Must-win battle:

How to set Services back to peer growth

Services development continues

in all areas

Kalmar Care contracts

won in all regions

Kalmar Care for

automated terminals –

work in progress

Crane Upgrades

growth delayed, but

still anticipated

Spare parts pricing and

tool development will

show results in 2015

18 Nov 2014 12

Must win battle:

How to win in automation

Lessons learned from current mega

projects, now we are ready to win

TraPac,

Los Angeles

Status: Commercial

operations partly started,

in the optimisation phase

HHLA, Hamburg

Status: Completed

DPW London

Gateway

Status: Commercial

operations started,

in the optimisation

phase

DPW Brisbane

Status: Commercial

operations started, in the

optimisation phase Patrick, Sydney

Status: Handing over in

process

VICTL,

Melbourne

Status:

Contract

signed

18 Nov 2014 14

Kalmar and Navis have a leading position

in port automation Kalmar’s current market share 30–50%, Navis 80% in automated terminals

Kalmar automation projects

Kalmar/Navis automation

solution

18 Nov 2014 15

Customer

Digital ecosystem revolutionises

the way of working

Testing & simulation Investment in Tampere

Technology and

Competence Centre

Automation test field

Automation laboratory

Simulation environment

Proto shop

Terminal Operating

System (TOS)

Terminal Logistics

System (TLS) Modular system

architecture

Measurement systems

Remote diagnostics

Fault management

Graphical UI framework

Pre-integrated with

Navis N4 TOS and

Kalmar equipment

18 Nov 2014 16

Cooperation with

local partners Strong utilisation of

R&D ecosystem results

University of Tampere

FIMECC

SME partners

Public funding partner:

Tekes

Kalmar has all the capabilities to respond to

the increased demand for port automation

Terminals are looking for different types

of automation

Greenfield projects = New automated

terminals, expansion of current automated

terminals or conversions of existing manual

operations

– Currently approx. 25 projects on-going or planned

– Expected 20 more projects in coming five years

Brownfield projects = Automating existing

manual operations

– Development in early phase

– Currently approx. 130 existing straddle carrier

terminals, of which 10% with automation potential

– Currently approx. 430 existing RTG terminals,

of which 10–15% with automation potential

18 Nov 2014 18

Conclusions

Project delivery capabilities improved based

on lessons learned

Excellent development in Mobile Equipment

will continue

Good progress in Services in most of the areas

Strong future growth expected for port automation

Increased investments in automation and

digitalisation

Kalmar is driving for industry leading financial

performance

18 Nov 2014 19