Hiab Oyj Unsp/Adr

Welcome to Cargotex first quarter 2024 results call. My name is Saki Vesikallio. I'm from Cargotex Investor Relations. Today's results will be presented by Cargotex CEO, Kasimir Lindholm, CFO Mikko Puolakka, HIEP's president Scott Phillips and Kalmar's president Sami Niironen. Welcome to the team, Sami. The presentation will be followed by a Q&A session. And please pay attention to the disclaimer in the presentation, as we will be making forward-looking statements. With that, over to you, Kasimir.

Thank you, Aki. Welcome also from my behalf. My name is Kasimir Lindholm, CEO of Cargotech. Really happy and proud to present the first quarter results. This is the fifth quarter in a row where Cargotech has stable and good performance. All business areas are improving regarding operating profit margin. We have good and stable demand in Hayab and Kalmar. We'll come back to that a bit later. uh mcgregor's merchant business and service business performer on a good level so we see improvement and clear improvement in mcgregor in the first quarter we still have some challenges remaining in the offshore business also really happy to present strong cash flow of 174 million in the first quarter and and all in all the de-merger plan and all the work that we're doing internally and have communicated externally is progressing according to plan. I will go through the update and the plan separation of Kalmar and Hayab, group level development as such, and then I'll give the word to Scott and to Sami, and then of course Mikko will present MacGregor and all the financials and the outlook. And then we end up with the Q&A. So separation of Kalmar and Hayeb progressing according to plan. When we announced the Q4 results, we also announced the demerger plan. We have been working since then relentlessly on the project, both internally and externally. We have received consent from the bondholders and really happy to welcome Sami Niiranen, who started on the 1st of April as president of Kalmar and CEO to be of Kalmar. Cargotech and Kalmar Boards proposed to the AGM a large search process in both cases. Really happy to see the end result of that search. We have four new board members joining Cargotech, HIEB2B, and five board members proposed for the Kalmar Board. We have also proposed to the AGM a new governance structure for Kalmar as a stock listed company with the shareholder nomination board included. Then more technically, Kalmar has now reported the discontinued operations as of Q1 2024. Mikko will come back to that, what it means regarding the numbers. Prospectus is planned to be published in May, and then we follow that up with capital market stay events at the end of May. The proposed members of Cargotech Board of Directors, four new board members, as said before, we get an international board in place with a lot of expertise and knowledge from the industry and really happy to see that proposal then to the AGM. In a similar fashion for Calomar board, we have five new board members proposed to the board of Kalmar and also here an international board in place with a lot of expertise and knowledge from the industry and from the global business. The structure, no changes here. We are working towards a separation of Kalmar by first of And we are working towards a solution for McGregor in the second half of 24. And at the end of the day, you will see then two separate stock listed companies listed in Helsinki, in Kalmar and Haieb. And that is then the end result we are striving for. The timeline was announced and showed as part of the Q4 results, no changes here, everything progressing according to plan. We are in the stage of demerger and listing prospectus published then during May. We have two capital markets days, 28th and 29th of May for Kalmar and for Hayab. and then AGM on the 30th of May, and then again targeting having a separate listing of Kalmar on the 1st of July. Then to the results. All in all, a stable and good quarter regarding both Hayab and Kalmar. We can see Hayab now six quarters in a row on the 380 million euro level regarding order intake every quarter. So stable and good situation in Hayab. Similarly in Kalmar, we are on roughly 400 million euro. You're a mark for three quarters now in a row. So similarly, they're stable and good. And we are improving and increasing the order book in the case of McGregor actually quite substantially in the first quarter. We have adjusted the cost structures. I'll come back to that a bit later, both in Hayab and Kalmar. And McGregor is growing, so there we're actually going in the opposite direction, especially in merchant and service, also adding and recruiting some employees in those two areas. Sales down in Hayab and Kalmar due to the order book development and sales in McGregor continued to improve in the first quarter. Cargotech's total eco-portfolio also here positive by an increase of 1%, so all in all a stable and good development in the eco-portfolio as well. Then to the operating profit, as mentioned before, improvement in all business areas. We are in high ebb on a 16.6% level. Very good first quarter for McGregor. Scott will come back regarding all the details. In MacGregor, we are on a 6% level. Here, merchant and service above 10 again, like last year in OP, and then we have still losses in the offshore business, taking it down to the 6% overall in the case of MacGregor. But positive development going from 1 million euro OP Q123 to 11 million in this quarter. So a very strong development in McGregor. Kalmar on a very good stable performance level of 13.5. So all in all, I mean, really, really strong, good results in the first quarter. This is actually the all-time high first quarter for Cargotech on a 13% OP level. One reason here behind it is, of course, the cost saving program that we announced in October last year. And I'll come back to that shortly, how we have been progressing. Then there are, of course, other matters here. We have been good on the material cost side, on the sourcing side, and managing the supply chains in a very good way in the first quarter. Then, as promised, a few words around the cost saving program. We are then today announcing that we're closing this one. We announced that we're going to strive for 50 million euros in cost savings. We announced that in October 23. Now we are so far into the... process and the actions have been taken and we can see that that on group level we are able to to find cost savings of 10 million Kalmar is actually targeting and actually getting to the 30 million mark and high up 20 million in cost savings. So this was one part that was helping us on the OP side in the first quarter. Then on top of that, McGregor is targeting 10 million cost savings as well, mainly then coming from offshore and headquarter cost reductions. So this was, in short, where we are in Cargotech after the first quarter, and with that, I will give the word to Scott, and Scott will take you through Hayab's Q1.

Thank you, Kazimir. And greetings, everyone, from my side. So in terms of first quarter results for Hayab, we had improved comparable operating profit, certainly sequentially and year over year as well. So we're really pleased about that. As Kazimir mentioned, we had a stable demand for the sixth quarter in a row, roughly around the €380 million mark. Our sales declined slightly, and that reflects, of course, the declining order book. But at the same time, really pleased as a result of the improved profitability. Our cash flow improved year over year significantly. So all in all, a strong start to the quarter. So getting into the order intake development, for roughly the last six quarters in a row, we're at about the same level. And we see the same level of developments in the market in terms of demand, in terms of the quote to activity. Our order book is now at 770 million Euro level. So we have good coverage still for the balance of the year, but it's down 31% year over year. We had a 1% improvement in orders year over year, so that's on roughly still the same level. We see a couple of factors that are still impacting order intake if you think about compared to the peak period. There's still a significant delay caused by the high interest rates in the markets, a little bit of inflation as well. So we see that the decision making in terms of converting opportunities into orders is roughly double the time that it's been in the past. And that continues to be the case through the past quarter. At the same time, though, really pleased that loader crane orders improved year over year, driven significantly by a large order that we want in the wind segment. So really pleased with this, but I'd characterize it certainly as a stable level. Haven't seen yet the factors to indicate that the demand curve is expected to go up, but rather looks pretty flat at this point in time. Then in terms of the sales, we had 415 million euros of sales in the quarter. That's a 4% decline, as I mentioned earlier and mentioned by Casimir, a factor of the order book. More impacted in the loader crane business, but still on a good level. And then quite pleased with the service sales. We're up 4% year over year. And that brought us to 28% of overall revenues. Our supply chain still continues to improve with a strong focus in creating collaboration with our suppliers on at least two fronts. So we're working hard on supplier development to make sure that we can flex up and down the demand, we can introduce new products effectively. And at the same time, that's translated into better and better delivery precision. partially supported by better and better capacity planning. And the third element that I'd add to this is that we've been working hard on the quality side of the equation as well. So overall, really nice development first quarter in terms of sales. And that translated into a good development and a good level in terms of profitability at 16.6%. So a strong start to the year. That's 12% improvement versus last year. Two factors really that are at play here around trying to successfully manage the inflationary pressures that we've seen the last couple of years. So a combination of pricing and productivity, which helped significantly in that drove the increase in cash flow that we saw in the quarter. So really pleased about that. And then last, I'd like to end as usual with a new innovation. So we introduced, I'm really pleased to announce, our MyHyob app. This is a digital assistant that's designed to make life easier, which is core in our strategy for both the operators as well as our service technicians. It puts the operators in a position to get instant insights about the equipment with easy access to support within Hyob. So we think that this will be a user-friendly opportunity to improve efficiency and the operation of the equipment at the same time have a good impact on uptime as the operators and the service technicians, fleet managers will get push notifications when it's time to execute on the planned maintenance service events. So that should all in all make for a much better experience in working with the support that we offer globally. And our objective here is to continue to drive the curve upward in terms of safety and productivity and the overall operator experience for the HIAB equipment. So really pleased about this one. So with that, I'm going to turn the floor over to Sammy and take you through CalMAR.