Hiab Oyj Unsp/Adr

Welcome to Kargatech's first quarter 2023 results call. On this historical day, as we announced both record-breaking results and a plan to separate Kalmar and Hayab. This is also the first result call for our new CEO, Kasimir Lindholm. Welcome. In the first quarter, our comparable operating profit was record high, driven by our core businesses and strong development in sales. Underlying demand for our solutions remained at a good level. My name is Aki Vesikalli, I'm from Cargatex IR. Today's presenters will be Kasimir Lindholm, CFO Mikko Puolakka, Kalmar's President Michel Van Roosendaal, and HIEP's President Scott Phillips. Please pay attention to the disclaimers in the presentations as we will be making forward-looking statements. Kasimir started by covering the quarterly highlights and group level figures. After him, Michel Van Roosendaal will enter the stage and cover Kalmar's first quarter, followed by Hiep, presented by Scott Phillips. Our CFO Mikko Puolakka will go through MacGregor's quarter, as well as financials and outlook. After that, Kasimir will get back on stage to present our plan to separate Kalmar and Hieb. After the presentations, there will be a wrap-up with a Q&A. With that, the stage is yours, Kasimir. Thank you, Aki.

So, comparable operating profit margin above 10%. We started off the year in a very good way. Orders received also on a healthy level. Come back to that a bit later. Sales increased by 26%, especially then in Kalmar and Hayab. And really glad to see comparable operating profit improving in all three business areas. Orders received continue to improve in McGregor, and both Michelle Scott and Mikko will then talk more about the order and the order mix. But all in all, we see that the orders are on a good and stable level now. And that is especially true looking at 2023, where we find that we have a solid order book in all three business areas. We had a strong development in sales, especially in Kalmar and IAB. There are particular reasons for that, and Scott and Michelle will go through it in more detail. But all in all, a great start to the year, also from a sales perspective, and that was the main driver for the record high operating profit. Service continued on a good path, improving quarter by quarter here. And again, really strong message here that service sales is improving in all three business areas. All in all, service share was 32% of total sales. The ECO portfolio also continued to improve and is on a good level. All in all, the ECO portfolio share is 32% of Cargotech total sales in the first quarter. With that, I will give now the word and the stage to Michelle. Please, Michelle.

and I have the pleasure to present the Colmar result. Very happy to present to you record comparable operating profit. You'll see that also the orders for our strategically important ECO portfolio are continued to increase, and we have also now started the production of our electric range, which is testimony of our sustainability journey. If you look at a bit more detail, we see steady demand for Kalmar. The flip side is that some of the larger projects are taking a bit more time before orders are being awarded, but at the same time, we see an order book that is very solid and service orders that are continuing to be very strong. The order book is such that it basically covers, in essence, the rest of this year, if you realize that there are no order backlog, in essence, for the service side, and also spreads into next year. If we then look at the sales side, very strong development compared to Q1 of 22, 31% increase, and also service sales, which is maybe less spiky, shows a consistent growth of 18%. What is important is that we have our capture rate, which means the part of our own business we capture is gradually and continuously increasing, which is testimony of our ability to basically perform the service business in an efficient and performant way. At the same time, we see on the flip side some persisting tightness and volatility of component availability, which is still a challenge for our output. In general, the improved efficiency on the supply chain makes that we have had the ability to reach this very strong sales level. If you then continue to look at margin expansion, I'm very pleased to show to you the historically highest percentage of CalMAR, 13%, which is the highest percentage we've ever had for a comparable operating profit. If you compare that to Q1 of last year, it's more than double, and of course, the percentage is from 7.6% to 13.0%. Why is that? It's driven by higher sales and also our ability to have good management of inflationary pressures. In general, we are starting or have started our lean journey and we believe we will continue to be able to perform strong on this side. Also, we have announced last year, you will recall, that the exit of our heavy crane business and the losses which are underlying there were €4 million lower. That has led to this 13% profit margin. Thank you. I'm now handing over to my friend and colleague, Scott Phillips. Scott, welcome to the stage.