Investor presentation, January 2019 Becoming the leader in ...

1 Becoming the leader in intelligent cargo handlingInvestor presentation, January2019 January 2019 Investor presentation1 January 2019 Investor in brief highlights progress 3 Cargotecin brief44 Sales:EUR 3,250 millionEBIT: we are building uponSales split: new equipment vs service and softwareJanuary 2019 Investor presentation5 Strong global player with well-balanced businessSales bygeographical areaSales bybusiness areasKalmar49%Hiab33%MacGregor18%AMER32% EMEA44%APAC24%Service and software 33%New equipment67%Figures: 2017 EBIT % excluding restructuring costs Leading market positionsin all segmentsStrong brandsLoyal customersLeading in technologyKalmarSales:EUR 1,598 millionEBIT: (EUR million)HiabSales:EUR 1,084 millionEBIT: (EUR million)MacGregorSales:EUR 571 millionEBIT: (EUR million)Figures have been restated according to IFRS 15 and are calculated by using the new definitions for the equipment, service and software businesses announced in March 2018 Key competitorsCargotec is a leading player in all of its business areasJanuary 2019 Investor presentation6 Global main competitorsOther competitorsCurrently two businesses performing wellJanuary 2019 Investor presentation7 Net sales* in Q4/17-Q3/18 EUR millionTrend in orders,last 12 months Profitability.

2 EBIT margin,last 12 monthsKalmar software (Navis)and Automation and Projects divisionMacGregor+5%Hiab+7%Kalmar equipment and service (excluding Automation and Projects Division & Navis)Low due to long term double digit* Figures rounded to closest 100 million~1,100~1,2003,280 KalmarequipmentHiabMacGregorKalmar APD andsoftware~400~500 Figures have been restated according to IFRS 15 and are calculated by using the new definitions for the equipment, service and software businesses announced in March 2018 Investment leader and strong market positions, leading brands in markets with long term growth vision is to become the global leader in intelligent cargo service & software business and asset light business model are increasing global opportunities for future automation and software track for profitability improvementand to reach financial targetsInvestment highlights: Why invest in Cargotec? 91. Technology leader and strong market positions, leading brands in markets with long term growth potentialJanuary 2019 Investor presentation10 Global megatrends Globalisation and trade growth Urbanisation Growing middle classGrowth drivers Container throughput growth Construction activity Automation DigitalisationCompetitive advantages Strong brands Full automation offering Technology leadershipMarket position #1 or #2 in all major segments2.

3 Our vision is to become the global leader in intelligent cargo handlingJanuary 2019 Investor presentation11 VISIONGLOBAL LEADERIN INTELLIGENT CARGO HANDLINGMUST-WIN BATTLESWIN THROUGH CUSTOMER CENTRICITYW ehelp our customers achieve their goals by aligning our offering and way of working to serve them DIGITALISATIONWe build and expand our digital solutionsto offer a great customer experience and more efficient business IN SERVICESW eextend our offering towards intelligent solutions that enable us to serve our customers wide across their FOR GROWTHWe focus on activities thatadd value and benefit our customers and us by developing our business operations and common 2019 Investor presentation123. Growing service & software business and asset light business model are increasing stabilityAsset light business model with a flexible cost structure Kalmar and Hiab: efficient assembly operation MacGregor: efficient project management and engineering office: > 90% of manufacturing and 30% of design and engineering capacity outsourced No in-house component manufacturingNext steps to increase service and software sales.

4 All new equipment connected by 2018 Build on Navisposition as industry leader Increase spare parts capture rates Boost service contract attachment ratesService and software* salesMEUR7668479319059079281071081211491 5214501002003004005006007008009001,0001, 10020132014201520162017Q3/2018 LTMS ervicesSoftware+9%+10%+0%+1%8739551,0521 ,0531,060*) Software sales defined as Navisbusiness unit and automation softwareYear 2017 figures have been restated according to IFRS 15 and 2013-2017 figures are calculated by using the new definitions for the equipment, service and software businesses announced in March 20181,073+1%LTM=Last12 months (Q4/17-Q3/18)Industry trends support growthin port automation: Only 40 terminals (out of 1,200 terminals) are automated or semi-automated currently globally Ships are Becoming bigger andthe peak loads have become an issue Increasing focus on safety Customers require decreasing energy usage and zero emission ports Optimum efficiency, space utilizationand reduction of costs are increasingly important Shortage and cost of trained and skilled labourpushes terminals to automationJanuary 2019 Investor presentation134.

5 Capitalizing global opportunities for future automation and software growthSignificant possibility in port software: Container value chain is very inefficient: total value of waste and inefficiency estimated at ~EUR 17bn Over 50% of port software market is in-house, in long term internal solutions not competitive Navishas leading position in port ERPC ustomers consider their automation decisions carefully Shipping line consolidation Utilisation rates of the existing equipment base Container throughput volumes Efficiency of the automation solutionsAutomation createssignificant cost savings*Labour costs 60%less labour costs Total costs 24%less costs Profit increase 125% * Change when manual terminal converted into an automated operation 3,1813,3583,7293,5143,2503,2801271492312 5025924205010015020025030035040020132014 201520162017Q3/18 LTM Net sales Operating profit**5. Clear plan for profitability improvement and to reach financial targetsJanuary 2019 Investor presentation14 GrowthTarget to grow faster than market Megatrends and strong market position supporting organic growth M&A potential Balance sheet and dividend Target gearing < 50% and increasing dividend in the range of 30-50% of EPS, dividend paid twice a yearProfitabilityTarget 10% operating profit and 15% ROCE in 3-5 years*Higher service and software sales key driver for profitability improvementCost savings actions.

6 2018 EUR 13 million (Lidhultassembly transfer in Kalmar) 2018 EUR 13 million in MacGregor 2020 EUR 50 million (indirect purchasing and new Business Services operations)Product re-design and improved project managementSales and operating profit** development*Target announced in September 2017**Excluding ** margin4,5004,0003,5003,0002,5002,0001,50 01,0005000 Service and softwareTargeting service and software sales 40% of net sales, minimum EUR billion in 3-5 years* 2017 figures have been restated according to IFRS months (Q4/17-Q3/18)KalmarJanuary 2019 Investor presentation1515373395401416443467493518 5415661731821821851952062102162232309698 1011011091131161201241286426756857027467 8681985488892302004006008001,00020132014 20152016201720182019202020212022 APACEMEAAMERC ontainer throughput still forecasted to grow yearon yearTEU million+ + + + + + + + from 2013 to 2022 44%CAGR %2016-2022: Drewry: Container forecaster Q3 20182015 Drewry: Container forecaster Q1 20182013-2014 DrewryGlobal Container Terminal Operators Annual Report 2013 January 2019 Investor presentation16+ and scalable NavisTOS softwareJanuary 2019 Investor presentation17 Terminal Logistic SystemTruck / Transfer areaASC stack areaAutomatic stacking crane (ASC) areaAutomated Horizontal TransportationQuay crane areaEquipmentEquipmentTerminal Operating System (TOS)Kalmar s operating environmentJanuary 2019 Investor presentation18 Provides integrated port automation solutions including software, services and a wide range of cargo handling equipmentTOS coordinates and optimisesthe planning and managementof container and equipment movesin complex business also maritimeshipping solutions.

7 Stowage planning Vessel monitoring Loading computer Route planningQuayHorizontal TransportationYardTransferareaIndustry leading spreader manufacturerThe collaboration platformserving the needs of oceancarriers, terminals and theirshipping partners Today s container supply chain is a fragmented and siloed framework Information sharing between parties is not optimally structured Forms of communication today includeemail, phone calls, EDI, paper plans Problems: incomplete data, errors, information not available on time In-house developed XVELA is a many-to-many platform to solve these issues Real-time stowage collaboration Port-to-port visibility and collaboration Synchronisationof planning between carriers and terminalsBenefits of XVELA: Faster vessel turn times Operational efficiencies Cost savingsJanuary 2019 Investor presentation19 XVELA provides benefits to ocean carriers and terminal operatorsServices provideourbiggestmedium termgrowthopportunityMarket shareMarket sizeServices 3-5%8B Equipment& Projects20-30%6B Software20-30% January 2019 Investor presentation20 Kalmar and Navisto deliver world-first intermodal automation solution to Sydney, AustraliaGreenfield intermodal terminal, Qube s Moorebank Logistics Park First fully automated intermodal terminal in the worldKalmar OneTerminal contract, including Navis N4 TOSAll equipment can be operated electrically on local solar powerOrder value EUR 80 million, booked in Q2 2018 Fully digitalised and autonomous container handling solution with software and services to YaraSolution enables autonomous.

8 Cost efficient and emission-free operations of the Yara Birkeland container ship in Norway21 Recent automation deals highlight our successful investments in automationJanuary 2019 Investor presentationHiabJanuary 2019 Investor presentation2222 EMEA construction outputy/y change (%)AMER construction outputy/y change (%)Construction output driving growth opportunityOxford Economics: Industry output forecast 9 % % % % % % % % %201020122014201620182020202260657075808 59095100105110115120125130 IndexChange % % % % % % % % % % % %201020122014201620182020202260657075808 59095100105110115120125130135 IndexChange % January 2019 Investor presentation23 Strong market positions in all product linesJanuary 2019 Investor presentation24 MARKET SIZE*(EUR billion)KEYSEGMENTSHIAB POSITION& TREND*) Cargotec estimate~ ~ ~ ~ ~ and RecyclingConstruction and LogisticsTimber, Pulp and PaperConstruction and Logistics#1-2#1#1#1#2 LOADERCRANESTAILLIFTSDEMOUNTABLESTRUCK MOUNTED FORK LIFTSFORESTRYCRANES Urbanizationand Consumptiongrowth driving needs for efficiency Digitalizationand Connectivityenabling new businesssolutions North America and main Europeanmarkets continue to grow Developing markets strong load handling equipment penetration potential Construction, Waste & Recycling.

9 Logisticsand Governmentalbusiness segments show continued growth projection New applications market and segment growth potential Developing for increasing demand in Electrificationand Automation Growing demand for comprehensive life-cycle service offeringsand tailored business solutionsAttractive megatrends and growth drivers January 2019 Investor presentation25 MEGATRENDSMARKETGROWTHKEYSEGMENTSPRODUCT OFFERINGSERVICESOLUTIONSHiab s key growth drivers January 2019 Investor presentation26 CranesGain market share in big loader cranes and crane core marketsTail liftsEnter fast growing emerging markets and standardiseand globalisebusiness modelTruck-mounted forklifts Accelerate penetration in North America and EuropeServicesIncrease spare parts capture rates driven by connectivity and e-commerceMacGregor27We are an active leader in all maritime segmentsJanuary 2019 Investor presentation28 MerchantCargo FlowMarinePeople FlowOffshoreEnergyMarine Resources& StructuresNaval Logisticsand Operations Container cargo Bulk cargo General cargo Liquid cargo RoRo cargo Ferry Cruise Superyachts Walk-to-work Oil & Gas Renewables Research Fishery Aquaculture Mining Floating structures Naval & Military Supplies Logistics Naval & Military Operations Support Ship-to-ship transferLifecycle ServicesPicture: Statoil~3/4 of sales~1/4 of salesMerchant Ships and Offshore contracting activity picking upSource: ClarksonsSeptember2018 January 2019 Investor presentation2901002003004005006007008009 001,000 Avg.

10 07-1720152016201720182019202020212022202 32024No of unitsLong term contracting 2015-2024 Mobile offshore unitsForecastHistoricalavg05001,0001,500 2,0002,500 Avg. 96-1720152016201720182019202020212022202 32024No of shipsLong term contracting 2015-2024 Merchant ships > 2,000 gt(exclofsand misc)ForecastHistorical avgMacGregor s asset-light business modelgives flexibilityJanuary 2019 Investor presentation30 Sales & marketingDesign & engineeringManufacturingInstallationLife cyclesupportMacGregorMacGregorMacGregorM acGregorMacGregorOutsourcedOutsourcedOut sourcedCost-efficient scaling90% of manufacturing outsourced 30%of design and engineering capacity outsourcedRecent 2019 Investor presentation32We have increased EBIT* margins since 2013 through operational improvements*Excluding restructuring costs**LTM=Last 12 months (Q3/16-Q2/17)2013 EBIT-%*Hiab equipmentService and softwareKalmar s large projectsKalmar equipmentMacGregor equipment businessR&D, Software, Sales network and Service investmentsOther fixed costs increasesQ2 2017 LTM EBIT-%*EBIT* 2013 EUR 127 millionEUR 264 million bettergross profitEUR 133 million increasein fixed costsEBIT* Q2 2017 LTM**EUR 258 million EUR 50 million annual group-wide savings from 2020 onwards EUR 18 million cumulative savings at the end of Q3/18 EUR 13 million in 2018 (MacGregor) EUR 8million savings in 1-9/18