Cargotec to Present Kalmar as Discontinued Operations in Restated Financials for 2023

(IN BRIEF) Cargotec Corporation has approved a demerger plan, separating the Kalmar business area into an independent listed company by June 30, 2024. Shareholders, representing a significant portion of Cargotec’s shares and votes, have expressed support for the demerger. Consequently, Cargotec will present Kalmar as discontinued operations starting from the first quarter of 2024, in accordance with IFRS 5. The restated financial information for 2023, which includes comparative data, distinguishes between continuing and discontinued operations. However, it does not forecast standalone profitability for either business before or after the demerger. The financials disclosed are unaudited.

(PRESS RELEASE) HELSINKI, 8-Apr-2024 — /EuropaWire/ — As announced in a stock exchange release on 1 February 2024, the Board of Directors of Cargotec Corporation (“Cargotec”) has approved a demerger plan concerning the separation of the Kalmar business area into an independent listed company (the “Demerger”). The planned completion date of the Demerger is 30 June 2024. The Demerger is subject to approval by the Annual General Meeting of Cargotec to be held on 30 May 2024. Certain major shareholders of Cargotec, including Wipunen varainhallinta oy, Mariatorp Oy, Pivosto Oy and Kone Foundation, holding in the aggregate approximately 41 percent of the shares and approximately 75 percent of the votes in Cargotec, have indicated their support for the proposed Demerger.

Due to the proposed Demerger, Cargotec presents the Kalmar business area as discontinued operations under IFRS 5 Non-current Assets held for Sale and Discontinued operations starting from the first quarter of 2024 and publishes restated quarterly financial information on its 2023 financials. These restated financials constitute comparative information for Cargotec when the Kalmar business area is presented as discontinued operations.

Under IFRS 5, the result from discontinued operations is reported separately from continuing operations’ income and expenses in the consolidated statement of income. Comparative periods are restated accordingly. The consolidated balance sheet is not restated. The presented discontinued operations include revenue and operating expenses directly related to the Kalmar business area and other income and costs related to continuing operations that are not expected to continue after the Demerger, or would have been avoided without the Demerger. As a result, financial information presented for Cargotec as continuing and Kalmar business area as discontinued operations do not reflect the past or future profitability of either business on a stand-alone basis before the Demerger or after it.

The restated financial information included in this release is unaudited.

Cargotec (Nasdaq Helsinki: CGCBV) enables smarter cargo flow for a better everyday with its leading cargo handling solutions and services. Cargotec’s business areas Kalmar, Hiab and MacGregor are pioneers in their fields. Through their unique position in ports, at sea and on roads, they optimise global cargo flows and create sustainable customer value. Cargotec has signed the United Nations Global Compact Business Ambition for 1.5°C. The company’s sales in 2023 totalled approximately EUR 4.6 billion and it employs around 11,400 people. www.cargotec.com

	Restated
MEUR	Q1/23	Q2/23	Q3/23	Q4/23	2023
Continuing operations
Orders received	588	562	522	610	2,282
Service orders received	219	190	183	194	787
Order book, end of period	2,078	1,961	1,894	1,788	1,788
Sales	589	648	598	684	2,519
Service sales	200	201	197	208	806
Service sales, % of sales	34%	31%	33%	30%	32%
Eco portfolio sales	186	217	192	202	797
Eco portfolio sales, % of sales	32%	33%	32%	30%	32%
Operating profit	41.7	78.6	76.7	39.0	236.0
Operating profit, %	7.1%	12.1%	12.8%	5.7%	9.4%
Comparable operating profit	49.7	80.6	60.9	45.5	236.7
Comparable operating profit, %	8.4%	12.4%	10.2%	6.7%	9.4%
Profit before taxes	35.4	74.0	73.9	36.2	219.5
Profit for the period	23.7	54.7	62.2	21.7	162.4
Basic earnings per share, EUR	0.37	0.85	0.97	0.31	2.49

Discontinued operations	Q1/23	Q2/23	Q3/23	Q4/23	2023
Orders received	471	437	392	405	1,705
Service orders received	143	136	129	137	545
Order book, end of period	1,389	1,281	1,172	1,024	1,024
Sales	485	552	503	509	2,049
Service sales	146	143	137	147	574
Service sales, % of sales	30%	26%	27%	29%	28%
Eco portfolio sales	160	181	175	202	718
Eco portfolio sales, % of sales	33%	33%	35%	40%	35%
Operating profit	62.3	71.9	63.6	50.0	247.8
Operating profit, %	12.8%	13.0%	12.6%	9.8%	12.1%
Comparable operating profit	62.7	77.7	70.6	65.7	276.7
Comparable operating profit, %	12.9%	14.1%	14.0%	12.9%	13.5%
Profit before taxes	60.3	67.1	60.4	45.7	233.5
Profit for the period	48.9	52.9	44.8	39.6	186.2
Basic earnings per share, EUR	0.76	0.82	0.70	0.62	2.89

	Published
Cargotec total	Q1/23	Q2/23	Q3/23	Q4/23	2023
Orders received	1,059	999	914	1,015	3,987
Service orders received	362	326	312	331	1,331
Order book, end of period	3,467	3,242	3,065	2,812	2,812
Sales	1,074	1,200	1,102	1,193	4,569
Service sales	346	344	334	355	1,379
Service sales, % of sales	32%	29%	30%	30%	30%
Eco portfolio sales	346	397	367	404	1,515
Eco portfolio sales, % of sales	32%	33%	33%	34%	33%
Operating profit	104.0	150.5	140.3	89.0	483.8
Operating profit, %	9.7%	12.5%	12.7%	7.5%	10.6%
Comparable operating profit	112.4	158.3	131.5	111.2	513.3
Comparable operating profit, %	10.5%	13.2%	11.9%	9.3%	11.2%
Profit before taxes	95.7	141.0	134.3	81.9	453.0
Profit for the period	72.6	107.7	107.1	61.3	348.7
Basic earnings per share, EUR	1.13	1.67	1.66	0.92	5.38

Cash flow from operations before finance items and taxes	26.5	41.2	184.4	292.1	544.2
Interest-bearing net debt, end of the period	393	503	406	179	179
Gearing, %	26.4%	31.9%	24.2%	10.2%	10.2%
Interest-bearing net debt / EBITDA*	1.0	5.1	4.4	5.7	0.3
Return on capital employed (ROCE), last 12 months, %	7.5%	4.3%	3.7%	4.8%	19.9%
Personnel at the end of the period	11,640	11,745	11,786	11,391	11,391
*Last 12 months` EBITDA

MEUR	Q1/23	Q2/23	Q3/23	Q4/23	2023
Sales	588.8	648.2	598.4	684.0	2,519.4
Cost of goods sold	-455.9	-479.2	-455.2	-532.7	-1,923.0
Gross profit	132.9	169.1	143.3	151.3	596.5
Gross profit, %	22.6%	26.1%	23.9%	22.1%	23.7%
Selling and marketing expenses	-30.8	-31.8	-30.5	-34.9	-128.0
Research and development expenses	-10.3	-11.0	-10.3	-12.8	-44.4
Administration expenses	-47.7	-45.9	-45.9	-58.7	-198.2
Restructuring costs	-3.3	-1.7	-2.0	-6.4	-13.4
Other operating income	1.9	1.9	3.3	1.6	8.7
Other operating expenses	-1.0	-1.9	17.8	-2.2	12.7
Share of associated companies’ and joint ventures’ net result	0.0	0.0	0.9	1.1	2.1
Operating profit	41.7	78.6	76.7	39.0	236.0
Operating profit, %	7.1%	12.1%	12.8%	5.7%	9.4%
Finance income	1.3	0.7	2.0	3.1	7.0
Finance expenses	-7.5	-5.3	-4.8	-5.9	-23.5
Profit before taxes	35.4	74.0	73.9	36.2	219.5
Profit before taxes, %	6.0%	11.4%	12.4%	5.3%	8.7%
Income taxes	-11.7	-19.3	-11.7	-14.5	-57.1
Profit for the period, continuing operations	23.7	54.7	62.2	21.7	162.4
Profit for the period, continuing operations, %	4.0%	8.5%	10.4%	2.9%	6.4%
Profit for the period, discontinued operations	48.9	52.9	44.8	39.6	186.2
Profit for the period	72.6	107.7	107.1	61.3	348.7
Profit for the period, %	12.3%	16.6%	17.9%	9.0%	13.8%
Profit for the period attributable to:
Shareholders of the parent company	72.7	107.7	107.2	59.2	346.9
Non-controlling interest	-0.1	-0.1	-0.1	2.1	1.8
Total	72.6	107.7	107.1	61.3	348.7
Earnings per share for profit attributable to the shareholders of the parent company:
Basic earnings per share, EUR
Continuing operations	0.37	0.85	0.97	0.31	2.49
Discontinued operations	0.76	0.82	0.70	0.62	2.89
Diluted earnings per share, EUR
Continuing operations	0.37	0.85	0.96	0.31	2.48
Discontinued operations	0.76	0.82	0.69	0.62	2.88

MEUR	Q1/23	Q2/23	Q3/23	Q4/23	2023
Profit for the period	72.6	107.7	107.1	61.3	348.7

Other comprehensive income
Items that cannot be reclassified to statement of income:
Actuarial gains (+) / losses (-) from defined benefit plans	0.2	0.7	-0.1	-8.2	-7.4
Taxes relating to items that cannot be reclassified to statement of income	0.0	-0.1	0.0	1.7	1.5
Items that can be reclassified to statement of income:
Gains (+) / losses (-) on cash flow hedges	9.2	-12.3	-9.5	32.5	19.9
Gains (+) / losses (-) on cash flow hedges transferred to statement of income	-6.8	2.0	2.1	-16.4	-19.2
Translation differences	-30.1	-14.0	18.0	3.6	-22.5
Taxes relating to items that can be reclassified to statement of income	-1.0	1.9	1.6	-3.0	-0.5
Share of other comprehensive income of associates and JV, net of tax	0.7	0.0	0.0	0.0	0.7
Other comprehensive income, net of tax	-27.9	-21.8	12.2	10.1	-27.4

Comprehensive income for the period	44.7	85.8	119.2	71.5	321.2

Comprehensive income for the period attributable to:
Shareholders of the parent company	44.8	85.8	119.4	69.4	319.5
Non-controlling interest	-0.1	0.0	-0.1	2.1	1.7
Total	44.7	85.8	119.2	71.5	321.2

Comprehensive income for the period attributable to the shareholders of the parent company
Continuing operations	-6.2	36.7	76.8	28.2	135.6
Discontinued operations	51.1	49.1	42.6	41.1	183.9
Total	44.8	85.8	119.4	69.4	319.5

Cargotec to Present Kalmar as Discontinued Operations in Restated Financials for 2023

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