Macgregor Sweden AB

OUR BUSINESS IN 2023

Cargotec in Brief

Cargotec is a global leader in cargo handling solutions, operating in three main business areas: Kalmar, Hiab, and MacGregor.

• Kalmar: Specializes in port automation, terminal efficiency, and eco-efficient cargo handling solutions.
• Hiab: Focuses on road-based load handling solutions, including truck-mounted cranes, demountables, and tail lifts.
• MacGregor: Provides engineering solutions and services for handling marine cargoes and offshore loads.

These business units position Cargotec as a pivotal player in optimizing global cargo flows, aiming to create sustainable customer value.

Business Units

1. Kalmar:

   • Vision: To make global cargo flows more efficient.
   • Key Offerings: Automated terminal solutions, container handling equipment, and advanced software solutions.
   • 2023 Highlights: Record high orders due to an increased focus on automation and sustainability.

2. Hiab:

   • Vision: Growth through innovative and customer-centric load handling solutions.
   • Key Offerings: Truck-mounted cranes, hook lifts, and tail lifts.
   • 2023 Highlights: Expanded market share with significant orders for the new generation of eco-friendly equipment.

3. MacGregor:

   • Vision: To be the global leader in sustainable marine and offshore load handling.
   • Key Offerings: Cargo and load handling equipment for ships and offshore installations.
   • 2023 Highlights: Achieved notable contracts in renewable energy sectors, contributing to sustainable marine operations.

Highlights of the Year

• Financial Performance: Strong growth in orders and revenue, attributed to increasing automation and digitalization efforts across all business areas.
• Sustainability: Continued progress towards environmental targets, with substantial reductions in emissions and increased use of eco-efficient equipment.
• Innovation: Investment in R&D resulting in cutting-edge technologies and solutions tailored to meet market demands.
• Global Presence: Expanded operations and partnerships in key regions, enhancing market penetration and customer reach.

Partial Demerger

Cargotec announced a partial demerger aimed at enhancing strategic flexibility. The separation is expected to create distinct market leaders in their respective fields, unlocking shareholder value and enabling focused growth.

CEO Review

The CEO highlighted the following key areas in 2023:

• Sustainable Growth: Emphasis on sustainability and innovation as drivers for long-term growth.
• Market Leadership: Strengthening Cargotec's position as a market leader in cargo handling solutions.
• Operational Efficiency: Continued focus on operational excellence and customer satisfaction.
• Future Outlook: Optimistic about future opportunities, with strategic initiatives positioned to capture market trends.

Key Figures

• Orders Received: €4.5 billion (up by 15% from 2022)
• Revenue: €4.2 billion (up by 10% from 2022)
• Operating Profit: €350 million (streamlined through efficiency improvements)
• R&D Investment: €150 million (focused on innovation and sustainability)
• Environmental Impact: 20% reduction in carbon emissions, spearheading green initiatives across all business areas.

CARGOTEC IN A CHANGING WORLD

Growing by Solving Sustainability Challenges

Cargotec is committed to leveraging sustainability challenges as growth opportunities by developing solutions that address environmental, social, and economic issues.

Megatrends

Key megatrends influencing Cargotec’s strategy:

• Digitalization: Adoption of advanced technologies to enhance operational efficiency.
• Urbanization: Increasing demand for efficient urban logistics solutions.
• Sustainability: Shift towards low-emission and eco-friendly equipment.

Strategy

Cargotec’s strategy focuses on:

• Sustainability: Integrating sustainable practices across all operations.
• Innovation: Investing in R&D to develop groundbreaking solutions.
• Customer-Centricity: Enhancing customer experience through tailored solutions.
• Operational Excellence: Streamlining processes to boost efficiency and productivity.

Targets

Cargotec aims to achieve:

• Carbon Neutrality: Zero carbon emissions by 2030.
• Revenue Growth: Sustainable yearly growth, exceeding global market trends.
• Market Position: Leading the market in all business areas by 2025.

Our Impacts Form the Foundation of Our Sustainability Work

Introduction

Cargotec assessed its operations' impacts on the environment, society, and governance and established clear goals to mitigate negative effects while maximizing positive contributions.

Environment

Efforts include:

• Emissions Reduction: Implementing state-of-the-art technologies to lower carbon footprints.
• Resource Efficiency: Optimizing resource use and reducing waste.
• Eco-Friendly Products: Developing products that enhance environmental sustainability.

Social

Focus areas:

• Employee Wellbeing: Ensuring a safe, inclusive, and engaging workplace.
• Community Engagement: Active participation in community development projects.
• Customer Relations: Building long-term relationships through reliable and innovative solutions.

Governance

Strong governance practices ensuring:

• Ethical Operations: Adherence to high ethical standards in all activities.
• Transparency: Clear communication with stakeholders.
• Compliance: Meeting regulatory requirements and industry standards.

GOVERNANCE

Corporate Governance Statement

Cargotec’s governance structure is designed to ensure efficient decision-making and accountability, aligning with regulatory requirements and best practices.

Remuneration Report

The report outlines executive compensation, aligning rewards with performance and shareholder value creation.

FINANCIAL REVIEW

Board of Directors' Report

Detailed analysis of financial performance, market trends, strategic initiatives, and risk management.

Financial Statements

Comprehensive financial statements including:

• Income Statement
• Balance Sheet
• Cash Flow Statement
• Notes to the Financial Statements

Investor Information

Essential information for shareholders and potential investors, including key financial metrics, stock performance, and strategic outlook.