Konecranes (KCR) Investor Update summary

Service business update

• Agreement coverage for Demag and Konecranes brands has improved, now at 50% and 55% respectively, with a more balanced split between own and third-party assets due to acquisitions and brand additions.

• Asset base stands at 570,000, with ongoing quality improvements and focus on critical, high-value assets; technician count increased to 4,300 to support growth.

• Digital adoption is rising: yourKONECRANES usage at 70%, e-commerce part sales at 50%, and TRUCONNECT connections for predictive maintenance up to 20,000.

• Service sales growth outpaces the market, with a comparable EBITDA margin of 20.1% in the last twelve months and a target of 20%-24% by 2027.

• Continuous improvement in customer experience, digital tools, predictive maintenance, and bolt-on acquisitions, with technician development supporting expansion.

Industrial equipment business update

• Shift in sales channel mix, with 65% of hoists now sold under brands other than Konecranes, reflecting growth in acquired and regional brands.

• Market size estimated at €25 billion (service €15bn, equipment €10bn); market share in EMEA and Americas at ~15%, with strong positions in standard cranes and wire rope hoists.

• EBITDA margin for equipment improved to 7%, with a target of 8%-10% by 2027, driven by simplification, price management, platform harmonization, and divestments.

• Product platform harmonization progressing, with new launches for chain hoists, wire rope hoists, and the X-series crane, aiming for global scalability and efficiency.

• Manufacturing footprint optimized with factory closures, right-sizing, and investments in logistics, supporting future profitability and product launches.

Strategic and operational highlights

• Operating model evolved to bring resources closer to customers, integrating service and equipment for efficiency and improved teamwork, with decentralization and dual sales channels.

• Warehouse automation (Agilon) is in early stages, with strategy and structure under development for future growth.

• Focused growth in components business by supporting distributors with a wide product range, configurators, and improved delivery performance.

• Service and equipment businesses structured for both organic growth and M&A, with bolt-on acquisitions targeting installed base and new markets.

• Common business area functions support commercial development, sustainability, supply chain, and digitalization.