Konecranes Plc Unsp/Adr

Good afternoon and welcome to Conecranes' Q3 interim result webcast. My name is Roosa Wallin and I'm the interim head of investor relations at Conecranes. Before we go into today's agenda, I would like to remind you about the disclaimer. We might be making forward-looking statements. And as our agenda today, our CEO and President Marko Tulokas will start the presentation, and Teo Ottola, CFO, will continue. After the presentations, it's possible to ask questions. And today, our webcast is a bit shorter, 30 minutes, as later on we will be continuing with Conor Cranes' Capital Markets Day 2026. The stage is yours, Marko.

Thank you, Ruusa, and good afternoon, everybody. As Ruusa was already saying, today we are going to be a bit shorter than usual, but I will also start as usual by focusing on the key points of the quarter for Conecranes. Of course, a very significant milestone was that we updated our financial targets in the quarter. That includes our dividend policy as well as our capital allocation and long-term climate ambitions. If looking at the quarter, I would categorize it as a great quarter for Conecranes. Our demand activity continued strong, particularly within the ports business and on the industrial side this particular quarter, the way it was specifically on general manufacturing, power and mining segments. However, as it is particularly in the ports business, the order intake has some volatility and it's somewhat difficult to predict the order intake timing. And that also happened in quarter three. So even though we have a lot of activity in the funnel, our order intake in the port solutions was somewhat muted. And that meant that we also fell short of last year's quarter three in terms of order intake. But I'm very happy about the quarter, particularly when it comes to the delivery performance. And that is also thanks mainly to Port Solutions, where we caught up very nicely after a somewhat slow half of the year. And that was, as we discussed in the quarter two report, that was very much as planned. And that was what we saw already in the new plan. That is just the timing of the post deliveries for this year. So very good delivery performance on the third quarter of the year. And that also meant that we had an excellent result and that was driven by volume as well as tender solid performance. And I'll move on to the actual numbers now. So orders were really down due to port solutions, but we had some growth in industrial equipment and industrial service, and particularly we had a very good mix on all three business areas when it comes to the order intake. Our sales grew 10% on comparable currencies compared to the last year's quarter three. So we caught up very well as planned. And also the service business started to improve the deliver performance on the third quarter. That also meant that our order book continued to strengthen. Our profitability was very good, although not quite as nice as the record breaking 2025. So we had 15.6 margin on the third quarter of this year, which we consider to be a very good achievement from the team. The decrease in relative terms of the margin was mainly driven by higher positive one-offs in the comparison period. Our underlying performance, generally speaking, was strong. As already said, order intake not really as strong as previous year quarter, particularly because of ports timing of orders. We saw increase in industrial service and increase in industrial equipment, and increase in the EMEA region, but decrease in the Americas and APAC, and again in Americas particularly driven by the port solutions timing of orders. Our deliveries improved in all regions. And our port solutions and industrial equipment factories performed very well, so we had no major supply issues. The only remaining issue, particularly on the industrial equipment side, that the customer acceptance issue still exists, although we do see some improvement in those also. I will move on to the Conecranes updated financial targets, which do reflect our increased ambitions, and this is for those who are not maybe listening later to our Capital Markets Day presentation today. So we revised our strategic ambition as well as our targets, and as well as increased our targets. This reflects our confidence into our operating model, the performance that we've seen in the last years, as well as our mid- to long-term opportunities that we see in the marketplace. So we set an absolute growth target that's 7% for the connecranes group as well as 7% for industrial service and port solutions. Industrial equipment 6%, the main reason for that is that in that particular business we have some areas where we are or some business lines where we are somewhat more selective still than maybe in the others and that is why the industrial group is slightly lower target. The same we did for the profitability targets. We have had good progress in our efficiency, in our margin development in general. We were well in the range of the previously set targets. And although we have not really seen a downturn yet, we are also confident that our ability to grow, the efficiencies that we have built into our model, Our renewed product offering and efficiency of that as well as the runway of improvement potential is all there. And therefore we are confident to say that apart from a global unforeseen shock or crisis, we believe that we can perform in a normal downturn so that by 2030 we are in that range of 15 to 17% on group level. I'm very happy personally and as well as committed as is the whole Conecranes team to these new targets that is a very inspiring and an important thing for all of us. So now we're going to move on to the financials and Teo will join me on the stage for that.

Thank you. Thank you, Marko. And let's continue to the profitability side more in detail. So, like Marko already pointed out, the EBITDA margin for the quarter was very good, 15.6, but still about 1.1 percentage points lower than in the exceptional good Q3 of 25. We did improve in both solutions as well as in service, but there was a decline in industrial equipment. And when we take a look at it from the group perspective, so like Marko pointed out regarding the one-off, so we actually had positive one-offs in this quarter, roughly in the amount of €8 million as a result of tariff refunds in the US. But we actually had maybe 10 to 15 million one-offs in the third quarter of last year, so a larger number, and those were positive as well. And if we back out both of these from Q3 this year and Q3 last year, so we are looking at the negative margin difference of roughly half a percentage point. So excluding the one-offs, the difference is not as big, but it is still a negative in Q3 this year versus the year before. And this negative half percentage point roughly comes from the mix and then also to some extent from, let's say, operational issues in comparison to the situation a year ago. And maybe we can take a look at that more in detail with the help of the bridge on the right hand side. So despite the decline in the EBITDA margin, the euros, EBIT-euros actually rose to 172 million euros. When we take a look at pricing, so that was maybe two and a half percent, maybe a little bit more in an year-on-year comparison, which leaves us about 7-7.5% underlying volume improvement and this obviously creates a very nice operating leverage positive contribution to the result. Net of inflation pricing was on the positive but very little so no meaningful impact there and then like said the mix was negative and then also the performance was negative partially as a result of lower positive one-offs and partially as a result of operational issues, particularly in the industrial equipment. Fixed cost actually rose by 5 million, but this is basically inflation, not much more, not really anything else, and then for a change we have an FX translation impact slightly on the positive side. So very good underlying volume, no meaningful impact from the net of inflation pricing, negative mix, negative performance as a result of one-offs and operational topics, and those basically explain the profit difference between these two quarters. So just a couple of comments, few comments for each BA, starting with service. So here order intake 1.2% higher than a year ago with comparable currencies. It's a bit unfair comparison this time as we had a very good number of modernizations in the third quarter of 2025 if we excluded those. So we are looking at 5% plus growth actually within the field service and spare parts, which is on a good level. Then regarding sales, 2.4% growth in a year-on-year comparison. There is a small technical topic here as well. We have moved one unit from service to port solutions as a result of which service is selling less internally. And if we were to exclude this one, we would be taking a look at roughly 4% growth in sales year-on-year. So a pickup in the sales like Marko already explained. You can, by the way, see the other end of these internal sales as lower group internal sales in Q3 this year versus Q3 last year. Then taking a look at the industrial equipment. So there may be focusing on the sales. We have a decline in sales by roughly one percentage point in comparable currencies. We have had a little bit, let's say, delivery delays. These have been primarily as a result of the customer delays. But there also have been issues that are, let's say, originating from our own business and own doing. And these then have been visible also in the margin. So as a result of lower volumes, obviously fixed cost absorption has been on a lower level than what it was a year ago. We have had a little bit cost overruns as well there and then on top of that also the lower positive one-offs this year versus last year is visible in the industrial equipment margin as well. Of course 10.9 is by no means a weak margin but of course again when you take a look at the more than 14 one year ago so it was exceptionally good. Then, port solutions, and there we obviously have a decline in the order intake as a result of the timing. Taking a look at the underlying activity in the ports business, that continues to be good. We had good orders in port service, lift trucks as well, but of course the timing of the bigger orders is something that is impacting the number quite a bit. On the other hand, timing was now better for sales. We have almost 30% growth in sales in a year-on-year comparison, which is then of course also visible in the EVT margin. Margin is improving, but only by 0.2 percentage points. So with this high volume, that may be considered, let's say, not a very big improvement. But at the same time, we need to remember that the mix is, of course, now much weaker from the margin point of view than what it was a year ago. And then also within ports, the quarter last year was operationally very clean, solid and good. Then finally, from my point of view, a couple of comments on the balance sheet. Networking capital, to start with that one. Networking capital did not really increase from the level of Q2, but it didn't really decrease either. So the work in progress continues to be on a high level. There is nothing extraordinary, so there are no deviations in the commercial terms or anything, so this is probably mostly a timing topic. But it is of course true that we are slightly on the wrong side of the target of 10% of rolling 12-month sales. But like I said, nothing extraordinary in this or behind this number. From the cash flow point of view, the third quarter was better than the previous quarters as a result of the networking capital development. And we have now at the end of the third quarter, we have a net cash position of roughly 100 million total. And then with these comments, I will hand over back to Marko. Thank you, Teo.