Cargotec Investor Presentation
5. Clear plan for profitability improvement and to reach
financial targets
Growth
Target to grow faster than market
ā
Megatrends and strong market
position supporting organic growth
M&A potential
Service and software
Targeting service and software sales
40% of net sales, minimum EUR 1.5
billion in 3-5 years*
Balance sheet and dividend
Target gearing < 50% and
increasing dividend in the range of
30-50% of EPS, dividend paid twice
a year
Profitability
Target 10% operating profit and
15% ROCE in 3-5 years*
Higher service and software sales
key driver for profitability
improvement
Cost savings actions:
2020 EUR 30 million (indirect
purchasing and new Business
Services operations)
Product re-design and improved
project management
Sales and comparable operating
profit development
4,500
400
6.2%
7.2%
7.1%
8.0%
6.2%
4,000 4.4% 3,729
7.3% 3,683
350
3,514
3,500 3,358
3,250 3,304
3,263
300
3,000
250
259
264
2,500
250
242
231
200
2,000
204
150
1,500
149
100
1,000
500
50
0
0
2014 2015 2016 2017 2018
2019 2020
Net sales
Comparable operating profit
Comparable
operating profit margin
CARGOTEC
Investor presentation
*Target announced in September 2017
April 2021
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