New Konecranes Targets

Konecranes has announced new financial targets.

“The world is facing an increasingly acute challenge to provide materials and goods that are essential for people while preserving scarce resources and limiting emissions. Businesses have a central role to play in solving this massive challenge, and as an industry leader Konecranes is perfectly placed to do that,” said Konecranes president and CEO, Anders Svensson.

“We aim to become the world leader in material handling solutions creating value for everyone, and today we are announcing ambitious financial and performance targets that will guide us to success. Our ambition is underpinned by the purpose that drives us as a company: to shape next generation material handling for a smarter, safer and better world,” Svensson added.

“This success will come from five strategic enablers that build on Konecranes’ more than 100 years of experience as an industry leader: Deepening our customer focus; accelerating efficiency; scaling technology innovation; advancing responsible business; and enhancing our winning culture,” he said.

‘We aim to become the world leader in material handling solutions’ — Anders Svensson

Reflecting the growing global demand for material handling solutions and services that sustainably meet people’s needs, Konecranes has established the following new financial targets:

• Sales growth faster than the market1
• Profitability: Comparable EBITA margin of 12-15%2 as soon as possible, but no later than in 2027 (2022 9.5%)

The financial targets of Konecranes’ Business Segments are the following:

Service:

• Sales growth clearly faster than the market1
• Comparable EBITA margin of 20-24%2

Industrial Equipment:

• Sales growth in line with the market1
• Comparable EBITA margin of 8-10%2

Port Solutions:

• Sales growth clearly faster than the market1
• Comparable EBITA margin of 9-11%2

1 nominal world GDP growth, IMF World Economic Outlook

2 profitability range, depending on the cycle

Growth is expected to be mainly organic. The comparable EBITA margin target range is expected to be reached as soon as possible, but no later than in 2027.

Konecranes also implements a dividend policy and aims to pay a stable to increasing dividend per share, over the cycle.

Konecranes’ commitment to driving the material handling industry towards a more sustainable future – an effort that has been recognized externally by leading bodies/organizations including the CDP – will remain at the core of how it operates.

Konecranes now aims to have carbon neutral own operations by 2030 and continues its work to limiting global warming to 1.5°C and creating carbon-neutral supply chains.