KONECRANES PLC - KONECRANES CAPITAL MARKETS DAY ON December 8-9, 2014: BUSINESS AREA EQUIPMENT LAUNCHES A TARGET OF EUR 30 MILLION COST SAVINGS

KONECRANES PLC STOCK EXCHANGE RELEASE December 8, 2014 at 7.00


Konecranes is arranging a Capital Markets Day in Shanghai, China, on December 8-9. The presentations will highlight Konecranes’ key strategic initiatives: Industrial Internet, Segment-based Offering and oneKONECRANES from various perspectives. The presentations will cover the financial performance, growth prospects and business development of Konecranes’ two business areas as well the Group. In addition, Konecranes’ operations in China will be presented.

Executive Vice President, Head of Business Area Equipment, Ryan Flynn will present a management agenda that carries a new target to generate cost savings of EUR 30 million by the end of the first quarter in 2016. The three pillars of the management agenda are stronger customer focus, operational excellence and simplicity. The Business Area Equipment is planning to pursue the following measures to reach the targeted cost savings:

- restructuring non-performing units
- optimization of supply chain
- simplification of the operational model

In addition to the above-mentioned cost savings target of EUR 30 million, Konecranes is pursuing savings in variable costs through reduction of product costs and improvement of operational excellence including quality costs.

The total restructuring costs are estimated at maximum EUR 20 million for the years 2015 to 2016 of which EUR 15 million are expected to have an impact on cash flow.

oneKONECRANES, one of the Group’s key strategic initiatives, incorporates major IT investments, which are amortized as the implementation progresses. As a result, amortization of capitalized IT investments is expected to increase by approximately EUR 7 million in 2015 and by a further EUR 6 million in 2016.

MARKET OUTLOOK (UNCHANGED)

European customers have become increasingly cautious about investing. The Purchasing Managers’ Indexes are giving a reason for the continued optimism regarding the U.S. market. The near-term market outlook in emerging markets still remains uncertain. Continued contract base growth bodes well for the future of the service business.

FINANCIAL GUIDANCE (UNCHANGED)

The sales in 2014 are expected to be somewhat lower than in 2013. We expect the 2014 operating profit, excluding restructuring costs, to be approximately at the same level or to improve slightly from 2013.

LONG-TERM OBJECTIVES (UNCHANGED)

Profitability: Konecranes Group has a target to reach 10 percent operating margin over the cycle.

Growth: The Group has set a vision to reach a global market share of 30 %. This vision carries no time limit and is based on both organic growth and potential acquisitions.

Capital structure: The Group has no quantitative targets for the capital structure, but the optimal long-term gearing (net interest-bearing debt / equity) ratio is considered to be in the range of 50-80 percent. However, in the short-term the gearing can be higher or lower than this range.

Presentations and recordings of the CMD will be available on Konecranes website at
www.konecranes.com > Investors > Capital Markets Days.


KONECRANES PLC

Miikka Kinnunen
Director, Investor Relations



FURTHER INFORMATION
Analysts and Investors:
Miikka Kinnunen, Director, Investor Relations, Konecranes Plc,
tel. +358 20 427 2050

Press:
Mikael Wegmüller, Vice President, Marketing and Communications, Konecranes Plc, tel. +358 20 427 2008



Konecranes is a world-leading group of Lifting Businesses™, serving a broad range of customers, including manufacturing and process industries, shipyards, ports and terminals. Konecranes provides productivity-enhancing lifting solutions as well as services for lifting equipment and machine tools of all makes. In 2013, Group sales totaled EUR 2,100 million. The Group has 12,000 employees at 600 locations in 48 countries. Konecranes is listed on the Nasdaq Helsinki (symbol: KCR1V).



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