Power Point Presentation Template

HANDELSBANKEN CAPITAL MARKETS SMALL/MID CAP SEMINAR

June 20, 2011 Teo Ottola, CFO

• Konecranes in a nutshell • Strategy going forward • Looking ahead • Growth aspects

Mission • We are not just lifting things, but entire businesses

We deliver the highest lifecycle value by focusing on: • Maximizing the productivity of uptime • Minimizing the cost of downtime

16% (17)

R12M R12M 58% 1,628 MEUR 42% 31% 1,628 MEUR 53% (57) (FY 2010 (43) (30) (FY 2010 (53) 1,546) 1,546)

A UNIQUE BUSINESS IN THE INDUSTRY WITH ITS OWN RIGHT TO GROW

WIN-WIN SITUATION FOR CUSTOMER AND KONECRANES 9Improved productivity and uptime

3,500 service Own, 75% of Preventive Level-based Technicians dedicated equipment in maintenance service servicing management maintenance performed by concept up to cranes and contract base well-trained fully machine tools non- professionals outsourced of all makes Konecranes material equipment handling

2/3 OF THE INSTALLED EQUIPMENT SERVICED IN-HOUSE 9Productivity of the service technicians low 9Reactive maintenance > Too high downtime > Challenges to maintain skills to service modern equipment

Other suppliers Konecranes 87 % 13 % PORT CRANES # 3…5

LIFT TRUCKS # 3…4

NUCLEAR Market CRANES just restarting

MAXIMIZING THE PRODUCTIVITY OF UPTIME MINIMIZING THE COST OF DOWNTIME

SERVICE TECHNOLOGY

• Preventive approach • Increased R&D investment • Five service levels through the recession • Services for lifting • Focus on digital controls, equipment of every make software, automation and • 3,500 well-trained service enabling technologies technicians in 578 • High attention to safety, locations servicing contract quality and environment base of 381,000 items of • Smart Solutions to improve equipment customers’ productivity

Footprint expansion

Footprint expansion Footprint expansion Footprint expansion

● Main production sites ● Sales and service locations

• Access mid market segment in China • Further strengthening of manufacturing and sourcing in China

• Cross-distribution of certain products • Enhances presence in Far East and North America

• Development of offering in India • Adds in India to supply and sourcing network

• Our market is fragmented and there is a large number of small crane builders out there who End users 1) do not have their own component technology Crane builder, Dealer 2) who buy hoists or crane kits from the market “Beta” (Konecranes “Alpha” brand) >We have a dual channel strategy (distribution brands) to maximize market coverage

Konecranes Group

”We know in real time how millions of lifting devices and machine tools perform. We use this knowledge around the clock to make our customers’ operations safer and more productive.”

Information is Installed on crane compiled to a Crane usage report, which Konecranes data is focuses on: service branch collected by Information is Report is goes through the Control transmitted •Safety delivered to you reports and Pro condition back to •Usage & Konecranes provides you with monitoring Konecranes via Information via Customer maintenance unit. 2G modem. •Service Life Portal. recommendations.

TRUVIEW Connection TRUVIEW Service / TRUCARE

1) Increase the safety and reliability of cranes – Detect unsafe and abusive operating practices prior to an incident occurring – Predict when a safety critical component is nearing the end of its lifetime

2) Optimize service activities to obtain a better ROI on maintenance expenditures

3) Make informed decisions relating to modernization and overhaul of the crane

Analyze the Past; Prepare for the Future

1. Our main strategy is to grow organically 2. In M&A, our first priority are bolt-on acquisitions 3. We also keep an open mind towards larger M&A

Service Equipment 100 %

90 %

80 % Market share gains

70 % Multiple distribution Footprint expansion channels Broadened offering 60 % in emerging markets

50 %

40 % Synergies between business areas 30 % Bolt-on M&A

20 % New service Outsourcing of service Machine Tool 10 % Maintenance products

0 % 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

North America Asia Europe

Source: Maddison (Historical Statistics), IMF, ETLA

Profitability • 10 % operating margin over the cycle Growth • Vision to reach a global market share of 30 % Capital structure • No quantitative target for the capital structure, but the optimal long-term gearing (net debt/equity) is considered to be in the range of 50-80 %