CARGOTEC'S INTERIM REPORT

JANUARY–MARCH 2024

Cargotec's interim report January–March 2024: Comparable operating profit margin improved in all business areas

Sequentially stable demand in Hiab and Kalmar, Hiab's orders amounted to EUR 386 million and Kalmar's EUR 402 million
MacGregor's merchant and services businesses' good performance continued, challenges remain in offshore projects
Hiab's comparable operating profit margin was 16.6 (14.2), Kalmar's 13.5 (13.0) and MacGregor's 6.0 (0.4) percent
All business areas improved their cash flow, combined cash flow from operations before finance items and taxes totalled EUR 174 (26) million
Demerger is progressing according to the plan

Continuing operations' January–March 2024 in brief: Comparable operating profit increased

Orders received increased by 11 percent and totalled EUR 653 (588) million.
Order book amounted to EUR 1,799 (31 Dec 2023: 1,788) million at the end of the period.
Sales increased by 5 percent and totalled EUR 617 (589) million.
Service sales increased by 3 percent and totalled EUR 207 (200) million.
Service sales represented 33 (34) percent of consolidated sales.
Eco portfolio sales decreased by 6 percent and totalled EUR 174 (186) million.
Eco portfolio sales represented 28 (32) percent of consolidated sales.
Operating profit was EUR 70 (42) million, representing 11.3 (7.1) percent of sales. The operating profit includes items affecting comparability worth EUR -2 (-8) million.
Comparable operating profit increased by 43 percent and amounted to EUR 71 (50) million, representing 11.5 (8.4) percent of sales.
Profit for the period amounted to EUR 47 (24) million.
Basic earnings per share was EUR 0.73 (0.37).
Cash flow from operations before finance items and taxes totalled EUR 174 (26) million.¹

Outlook for 2024 unchanged

Cargotec estimates² Hiab's comparable operating profit margin in 2024 to be above 12 percent, Kalmar's comparable operating profit margin in 2024 to be above 11 percent, and MacGregor's comparable operating profit in 2024 to improve from 2023 (EUR 33 million).

Kalmar is presented as discontinued operations due to the proposed demerger

As announced in a stock exchange release on 1 February 2024, the Board of Directors of Cargotec Corporation ("Cargotec") has approved a demerger plan concerning the separation of the Kalmar business area into an independent listed company (the "Demerger"). The planned completion date of the Demerger is 30 June 2024. The Demerger is subject to approval by the Annual General Meeting of Cargotec to be held on 30 May 2024. Certain major shareholders of Cargotec, including Wipunen varainhallinta oy, Mariatorp Oy, Pivosto Oy and Kone Foundation, holding in the aggregate approximately 41 percent of the shares and approximately 75 percent of the votes in Cargotec, have indicated their support for the proposed Demerger.

¹ Includes discontinued operations.

² The business area 2024 profitability outlook is presented using the same principles which are applied in the 2023 external financial reporting.

Due to the proposed Demerger, Cargotec presents the Kalmar business area as discontinued operations under IFRS 5 Non-current Assets held for Sale and Discontinued operations starting from the first quarter of 2024 and published restated quarterly financial information on its 2023 financials on 8 April 2024. These restated financials constitute comparative information for Cargotec when the Kalmar business area is presented as discontinued operations.

Under IFRS 5, the result from discontinued operations is reported separately from continuing operations' income and expenses in the consolidated statement of income. Comparative periods are restated accordingly. The consolidated balance sheet is not restated. The presented discontinued operations include revenue and operating expenses directly related to the Kalmar business area and other income and costs related to continuing operations that are not expected to continue after the Demerger, or would have been avoided without the Demerger. As a result, financial information presented for Cargotec as continuing and Kalmar business area as discontinued operations do not reflect the past or future profitability of either business on a standalone basis before the Demerger or after it.

Contrary to the presentation method according to IFRS 5, in the presented segment information, Kalmar's profit is still reported according to the normal calculation method, taking depreciation and amortisation into account.

The restated financial information included in this release is unaudited.

Continuing operations' key figures

MEUR	Q1/24	Q1/23	Change	2023
Orders received	653	588	11%	2,282
Service orders received	205	219	-6%	787
Order book, end of period	1,799	2,078	-13%	1,788
Sales	617	589	5%	2,519
Service sales	207	200	3%	806
Service sales, % of sales	33%	34%		32%
Eco portfolio sales	174	186	-6%	797
Eco portfolio sales, % of sales	28%	32%		32%
Operating profit	69.7	41.7	67%	236.0
Operating profit, %	11.3%	7.1%		9.4%
Comparable operating profit	71.2	49.7	43%	236.7
Comparable operating profit, %	11.5%	8.4%		9.4%
Profit before taxes	68.2	35.4	93%	219.5
Profit for the period	47.1	23.7	98%	162.4
Basic earnings per share, EUR	0.73	0.37	98%	2.49

Discontinued operations' key figures*

MEUR	Q1/24	Q1/23	Change	2023
Orders received	402	471	-15%	1,705
Service orders received	156	143	9%	545
Order book, end of period	972	1,389	-30%	1,024
Sales	439	485	-10%	2,049
Service sales	137	146	-7%	574
Service sales, % of sales	31%	30%		28%
Eco portfolio sales	176	160	10%	718
Eco portfolio sales, % of sales	40%	33%		35%
Operating profit	49.9	62.3	-20%	247.8
Operating profit, %	11.4%	12.8%		12.1%
Comparable operating profit	65.6	62.7	5%	276.7
Comparable operating profit, %	14.9%	12.9%		13.5%
Profit before taxes	47.0	60.3	-22%	233.5
Profit for the period	34.2	48.9	-30%	186.2
Basic earnings per share, EUR	0.53	0.76	-30%	2.89

*Due to Kalmar business area's classification as discontinued operations, suspended depreciation and amortisation starting from 1 February 2024 had a positive EUR 6.6 million impact on the presented result figures before taxes and EUR 4.9 million positive impact on the result after taxes. Comparative information is not restated accordingly.

Cargotec's key figures*

MEUR	Q1/24	Q1/23	Change	2023
Orders received	1,054	1,059	0%	3,987
Service orders received	361	362	0%	1,331
Order book, end of period	2,770	3,467	-20%	2,812
Sales	1,056	1,074	-2%	4,569
Service sales	343	346	-1%	1,379
Service sales, % of sales	32%	32%		30%
Eco portfolio sales	350	346	1%	1,515
Eco portfolio sales, % of sales	33%	32%		33%
Operating profit	119.6	104.0	15%	483.8
Operating profit, %	11.3%	9.7%		10.6%
Comparable operating profit	136.8	112.4	22%	513.3
Comparable operating profit, %	13.0%	10.5%		11.2%
Profit before taxes	115.3	95.7	20%	453.0
Cash flow from operations before finance items and taxes	173.9	26.5	> 100%	544.2
Profit for the period	81.2	72.6	12%	348.7
Basic earnings per share, EUR	1.26	1.13	12%	5.38
Interest-bearing net debt, end of period	57	393	-86%	179
Gearing, %	3.1%	26.4%		10.2%
Interest-bearing net debt / EBITDA**	0.1	1.0		0.3
Return on capital employed (ROCE), last 12 months, %	21.1%	7.5%		19.9%
Personnel, end of period	11,266	11,640	-3%	11,391

** Last 12 months' EBITDA

Cargotec's President and CEO Casimir Lindholm: Fifth consecutive quarter with good results, demerger progressing according to the plan

The first quarter of 2024 provided a strong start for the year. Hiab, Kalmar and MacGregor all improved their comparable operating profit margins. All businesses combined our comparable operating profit amounted to EUR 137 million, and we delivered the best first quarter in Cargotec's history. This was the fifth consecutive quarter with good results, despite complex business environment. Solid execution continued across business areas and the results were also supported by cost saving actions we launched in October last year. The actions are now to a large extent implemented and we foresee EUR 60 million annual savings for Cargotec in total in 2024 instead of the original estimate of EUR 50 million.

In Kalmar, strong profitability continued and demand was stable for the third quarter in a row. Kalmar's orders received amounted to EUR 402 million. Demand for mobile equipment used in industrial operations and small- and mid-sized terminals remained good and we continue to see delayed decision making in larger orders and destocking in the distribution customer segment. Kalmar's sales declined by 10 percent from the previous year and amounted to EUR 439 million, impacted by lower order intake in the second half of last year. However, Kalmar's comparable operating profit margin increased to 13.5 percent as cost saving actions announced in October last year offset the decline in sales. Kalmar's comparable operating profit amounted to EUR 59 million.

In Hiab, the quarter was the sixth quarter in a row with a stable level of demand and orders received amounted to EUR 386 million. Hiab's sales decreased slightly to EUR 415 million while service sales continued to grow. Despite lower sales, Hiab's comparable operating profit increased by 12 percent and amounted to EUR 69 million, corresponding 16.6 percent of sales, driven by successful management of inflationary pressures and tight cost control.

MacGregor's merchant and services businesses continued to perform well. Orders received increased by 29 percent to EUR 267 million. Orders included a sizable order with a value of almost EUR 50 million. MacGregor's order book continued to increase and now exceeds EUR 1 billion. MacGregor's sales increased by 29 percent to EUR 203 million, driven by increased deliveries to merchant vessels, leading the comparable operating profit to improve to EUR 12 million, representing 6.0 percent of sales.

MacGregor's core businesses merchant and services performed well and, excluding the offshore business, MacGregor's comparable operating profit margin in the first quarter would have been around 11 percent. However, we still have challenges in approximately 10 loss making offshore pilot projects containing advanced technologies. In addition, MacGregor has an ongoing dispute related to one monopile installation vessel project. We have not been committing to any new pilot projects in the past quarters and we have been executing a restructuring programme to turn around the offshore business. At the end of the first quarter, MacGregor's offshore equipment related order book has been reduced to EUR 87 (134) million.

All segments combined, we generated a strong operative cash flow of EUR 174 million, leading to a reduction of our net debt to EUR 57 million. Hence, our gearing is only 3 percent, giving an excellent foundation for our businesses in their planned standalone future.

The planned separation of our core businesses Kalmar and Hiab into two world-leading standalone companies is progressing according to the plan, and we are expecting to reach major milestones this year. The completion date of the demerger is expected to be 30 June 2024. Alongside the separate listing of Kalmar, we will focus on finding a solution for MacGregor and preparing Hiab to become a standalone company.

Cargotec's Board of Directors approved the demerger plan on 1 February. Since the approval of the plan, we have proceeded steadily. On the first day of April, Sami Niiranen started as President of Kalmar. We have also published notice to our Annual General Meeting to be held on 30 May where the formal decision on the transaction will be taken. Certain shareholders, representing approximately 41 percent of the shares and approximately 75 percent of the votes in Cargotec, have already indicated their support for the proposed demerger.

The AGM will also elect both Cargotec's and Kalmar's Boards of Directors. There would be no overlap between the Boards of Cargotec and Kalmar. Furthermore, a Shareholders' Nomination Board would be established for Kalmar.

Due to the high certainty of the transaction, Kalmar is reported as discontinued operations since the beginning of the year. Hence, the combined financial targets set in November 2022 for Kalmar and Hiab are no longer valid. Cargotec's climate target to reduce greenhouse gas emissions in all three emission scopes by at least 50 percent by 2030 compared to a 2019 baseline remains valid. The target is validated by the Science Based Targets initiative. We plan to publish new long term performance targets for Hiab and Kalmar in May. The prospectus, which discloses more details on the standalone Kalmar, is also planned to be published in May ahead of the AGM.

Hiab's and Kalmar's Capital Market Days will be held on 28 and 29 May and I warmly welcome you to follow the events virtually.

Reporting segments' key figures

Orders received

MEUR	Q1/24	Q1/23	Change	2023
Kalmar	402	471	-15%	1,705
Hiab	386	380	1%	1,466
MacGregor	267	208	29%	816
Internal orders	0	0		0
Cargotec, total	1,054	1,059	0%	3,987
Adjustment items related to discontinued operations	402	471	-15%	1,705
Continuing operations, total	653	588	11%	2,282

Order book

MEUR	31 Mar 2024	31 Dec 2023	Change
Kalmar	971	1,024	-5%
Hiab	770	799	-4%
MacGregor	1,028	988	4%
Internal order book	1	1
Cargotec, total	2,770	2,812	-1%
Adjustment items related to discontinued operations	972	1,024	-5%
Continuing operations, total	1,799	1,788	1%

Sales

MEUR	Q1/24	Q1/23	Change	2023
Kalmar	439	485	-10%	2,050
Hiab	415	432	-4%	1,787
MacGregor	203	157	29%	733
Internal sales	0	0		0
Cargotec, total	1,056	1,074	-2%	4,569
Adjustment items related to discontinued operations	439	485	-10%	2,049
Continuing operations, total	617	589	5%	2,519

Operating profit

MEUR	Q1/24	Q1/23	Change	2023
Kalmar	51.0	62.8	-19%	264.2
Hiab	68.7	61.4	12%	252.1
MacGregor	10.7	-7.4	> 100%	31.8
Corporate administration and support functions	-10.7	-12.8	16%	-64.4
Cargotec, total	119.6	104.0	15%	483.8
Adjustment items related to discontinued operations	49.9	62.3	-20%	247.8
Continuing operations, total	69.7	41.7	67%	236.0

Comparable operating profit

MEUR	Q1/24	Q1/23	Change	2023
Kalmar	59.5	63.2	-6%	279.4
Hiab	68.7	61.4	12%	252.1
MacGregor	12.1	0.7	> 100%	32.6
Corporate administration and support functions	-3.5	-12.8	73%	-50.8
Cargotec, total	136.8	112.4	22%	513.3
Adjustment items related to discontinued operations	65.6	62.7	5%	276.7
Continuing operations, total	71.2	49.7	43%	236.7

Telephone conference for analysts, investors and media

A live international telephone conference for analysts, investors and media will be arranged on the publishing day at 10:00 a.m. EEST. The event will be held in English. The report will be presented by President and CEO of Cargotec Casimir Lindholm, CFO Mikko Puolakka, President of Hiab Scott Phillips and President of Kalmar Sami Niiranen. The presentation material will be available at www.cargotec.com by the latest 9:30 a.m. EEST.

To ask questions, please join the teleconference by registering via the following link: https://palvelu.flik.fi/teleconference/?id=50049131. After the registration, the conference phone numbers and a conference ID to access the conference will be provided. Questions can be presented during the conference.

The event can also be viewed as a live webcast athttps://cargotec.videosync.fi/q1-2024. The conference call will be recorded and an on-demand version of the conference will be published at Cargotec's website later during the day.

Please note that by dialling to the conference call, the participant agrees that personal information such as name and company name will be collected.

For further information, please contact:

Mikko Puolakka, CFO, tel. +358 20 777 4105 Aki Vesikallio, Vice President, Investor Relations, tel. +358 40 729 1670

Cargotec (Nasdaq Helsinki: CGCBV) enables smarter cargo flow for a better everyday with its leading cargo handling solutions and services. Cargotec's business areas Kalmar, Hiab and MacGregor are pioneers in their fields. Through their unique position in ports, at sea and on roads, they optimise global cargo flows and create sustainable customer value. Cargotec has signed the United Nations Global Compact Business Ambition for 1.5°C. The company's sales in 2023 totalled approximately EUR 4.6 billion and it employs around 11,300 people. www.cargotec.com

Cargotec's interim report January–March 2024

The interim report provides estimates on future prospects involving risk and uncertainty factors, and other factors as a result of which the performance, operation or achievements of Cargotec may substantially deviate from the estimates. Forward-looking statements relating to future prospects are subject to risks, uncertainties and assumptions, the implementation of which depends on the future business environment and other circumstances.

Operating environment

The business environment in which Cargotec's businesses Hiab, Kalmar and MacGregor operate is complex, stemming from high interest rates and inflation, growing geopolitical tensions, and sluggish growth estimates. However, many of our customers and partners are performing well.

According to the International Monetary Fund's (IMF) world economic outlook published in April 2024, the global economy is projected to grow by 3.2 percent in 2024 and by 3.2 percent in 2025. In the IMF's advanced economies group (a group of countries which includes several key markets for Hiab and Kalmar, such as the United States, the United Kingdom and Germany), the IMF estimates a 1.7 percent growth in 2024 and a 1.8 percent growth in 2025. The report notes that the pace of global growth is low by historical standards, owing to both near-term factors, such as still high borrowing costs and withdrawal of fiscal support, and longer-term effects from the COVID-19 pandemic and Russia's invasion of Ukraine; weak growth in productivity; and increasing geo-economic fragmentation. 3

Kalmar's demand is also impacted by the number of containers handled at ports globally, which is estimated to have increased by 5.9 percent during the first quarter and increase by 2.5 percent in 2024. 4

The demand for MacGregor's solutions is impacted by the level of merchant ship and offshore newbuilding contracting at shipyards. By the end of the first quarter, the new ship orders amounted to 353 (Q1/2023: 241). In 2024, the number of new vessel orders is projected to be 1,879 (2023: 1,943). 5 In the merchant segment, the newbuilding demand is turning towards tankers and gas carriers while the container ship and car carrier ordering is slowing down. In offshore, the wind energy is still driving the demand. Environmental regulations and ageing fleets increase demand for services and upgrades.

³ International Monetary Fund: World Economic Outlook, April 2024

⁴ Drewry Container Forecaster, March 2024

⁵ Clarkson Research, April 2024

Financial performance, continuing operations

Orders received and order book

MEUR	Q1/24	Q1/23	Change	2023
Orders received	653	588	11 %	2,282
Service orders received	205	219	-6 %	787
Order book, end of period	1,799	2,078	-13 %	1,788

In the first quarter of 2024, orders received increased by 11 percent from the comparison period and totalled EUR 653 (588) million. Orders received increased in Hiab and in MacGregor. Service orders received decreased by 6 percent and totalled EUR 205 (219) million.

The order book increased by 1 percent from the end of 2023, and at the end of the first quarter it totalled EUR 1,799 (31 Dec 2023: 1,788) million. Hiab's order book totalled EUR 770 (799) million, representing 43 (45) percent and MacGregor's EUR 1,028 (988) million or 57 (55) percent of the consolidated order book.

In geographical terms, the share of orders received in the first quarter was 40 (41) percent in EMEA and 30 (34) percent in the Americas. Asia-Pacific's share of orders received was 30 (25) percent.

Orders received, MEUR

Sales

MEUR	Q1/24	Q1/23	Change	2023
Sales	617	589	5%	2,519
Service sales	207	200	3%	806
Eco portfolio sales	174	186	-6%	797

In the first quarter of 2024, sales increased from the comparison period by 5 percent and amounted to EUR 617 (589) million. Sales decreased in Hiab and increased in MacGregor. Service sales increased by 3 percent from the comparison period and totalled EUR 207 (200) million, representing 33 (34) percent of consolidated sales.

In the first quarter, eco portfolio sales decreased by 6 percent and amounted to EUR 174 (186) million, representing 28 (32) percent of continuing operations sales. Eco portfolio sales decreased in the climate solutions category and increased in the circular solutions category. Eco portfolio sales decreased in Hiab and increased in MacGregor.

Sales increased in Asia-Pacific and Americas and decreased in EMEA in the first quarter. EMEA's share of consolidated sales was 44 (54) percent, Americas' 32 (30) percent and Asia-Pacific's 24 (16) percent.

Sales, MEUR

Service and eco portfolio sales, MEUR

Sales by business area Q1/2024, % Sales by geographical area Q1/2024, %

Financial result, continuing operations

Operating profit and comparable operating profit

MEUR	Q1/24	Q1/23	Change	2023
Operating profit	69.7	41.7	67 %	236.0
Operating profit, %	11.3%	7.1%		9.4%
Comparable operating profit	71.2	49.7	43%	236.7
Comparable operating profit, %	11.5%	8.4%		9.4%

Operating profit for the first quarter totalled EUR 70 (42) million. The operating profit includes items affecting comparability worth EUR -2 (-8) million.

Comparable operating profit for the first quarter increased by 43 percent and totalled EUR 71 (50) million, representing 11.5 (8.4) percent of sales. The comparable operating profit increased, driven by successful management of inflationary pressures in Hiab and higher sales in MacGregor.

More information regarding items affecting comparability is available in Note 7, Comparable operating profit.

Operating profit and items affecting comparability, MEUR

Operating profit Items affecting comparability

Comparable operating profit, MEUR Comparable operating profit, %

Net finance expenses and net income, continuing operations

Net interest expenses for interest-bearing debt and assets for the first quarter totalled EUR -1 (2) million. Net finance expenses totalled EUR 1 (6) million.

Profit for the first quarter totalled EUR 47 (24) million, and basic earnings per share was EUR 0.73 (0.37).

Balance sheet, cash flow and financing

The following information includes both continuing and discontinued operations. The consolidated balance sheet total was EUR 4,315 (31 Dec 2023: 4,376) million at the end of the first quarter. Equity attributable to the equity holders of the parent was EUR 1,800 (1,752) million, representing EUR 27.99 (27.25) per share. Property, plant and equipment on the balance sheet amounted to EUR 168 (445) million and intangible assets to EUR 706 (996) million. The decrease was related to reclassification of Kalmar business area as discontinued operations. More information about discontinued operations is available in Note 17, Discontinued operations. Total assets related to discontinued operations amounted to EUR 1,701 million.

Return on equity (ROE, last 12 months) was 21.7 (31 Dec 2023: 21.2) percent at the end of the first quarter and return on capital employed (ROCE, last 12 months) was 21.1 (19.9) percent. The improvement in ROCE was driven by higher profitability in MacGregor and Hiab. ROE and ROCE include both continuing and discontinued operations.

Return on capital employed, % (ROCE), last 12 months

Interest-bearing net debt, MEUR,

Gearing, %

Cash flow from operating activities before finance items and taxes totalled EUR 174 (26) million during January–March including both continuing and discontinued operations. The increase in cash flow was driven by increased profitability and reduction of net working capital in Kalmar and MacGregor.

Cargotec's liquidity position is strong. The liquidity reserves, consisting of cash and cash equivalents and undrawn EUR 430 million long-term committed revolving credit facilities, totalled EUR 1,132 million on 31 March 2024 (31 Dec 2023: 1,115). In addition to the liquidity reserves, Cargotec had access to a EUR 150 million commercial paper programme, out of which EUR 150 (150) million were undrawn, as well as undrawn bank overdraft facilities, totalling EUR 94 (94) million.

The company's liquidity requirement – repayments of interest-bearing liabilities due within the following 12 months – totalled EUR 154 (159) million, which includes EUR 43 (43) million lease liabilities.

At the end of the first quarter, the interest-bearing debt amounted to EUR 761 (31 Dec 2023: 867) million, of which EUR 177 (178) million was in lease liabilities. Of the interest-bearing debt, EUR 154 (159) million was current and EUR 608 (708) million non-current debt. The average interest rate of interest-bearing liabilities, excluding on-balance sheet lease liabilities, was 3.4 (3.3) percent. Cash and cash equivalents, loans receivable, and other interest-bearing assets totalled EUR 705 (688) million. Interest-bearing net debt totalled EUR 57 (179) million.

At the end of the first quarter, Cargotec's equity to assets ratio was 45.8 (31 Dec 2023: 43.8) percent. Gearing was 3.1 (10.2) percent.

Impacts of currencies and structural changes

	Orders received	Sales
MEUR	Q1	Q1
2023	1,059	1,074
Restatement of Discontinued Operations	-44 %	-45 %
2023 Continuing operations	588	589
Organic growth in constant currencies, %	13%	7%
Impact of changes in exchange rates, %	-1%	-1%
Structural changes, %	-1%	-1%
Total change, Continuing operations, %	11 %	5 %
2024	653	617

In the first quarter of 2024, orders received increased organically in constant currencies by 13 percent in continuing operations. Changes in exchange rates had a 1 percentage point negative effect on continuing operations' orders received. Structural changes had a -1 percentage point impact on continuing operations' orders received. In constant currencies, sales increased organically by 7 percent in continuing operations. Changes in exchange rates had a 1 percentage point effect and structural changes a -1 percentage point effect on continuing operations' sales.

Capital expenditure, continuing operations

Capital expenditure, excluding acquisitions and customer financing, totalled EUR 14 (12) million in the first quarter. Investments in customer financing were EUR 0 (0) million. Depreciation, amortisation and impairment amounted to EUR 14 (14) million. The amount includes impairments worth EUR 0 (0) million.

Acquisitions and divestments in 2024

Cargotec is actively developing and maintaining an M&A pipeline with a primary focus on Hiab. The aim of potential M&A would be to strengthen Cargotec's portfolio and to complement the offering, enter new developing markets and seek growth in adjacent segments.

Information regarding the planned separation of Kalmar and Hiab is available on chapter Planned separation of Kalmar and Hiab and in Note 18, Demerger plan.

Information regarding acquisitions and divestments is available in Note 15, Acquisitions and disposals.

Operational restructurings

Restructuring costs in continuing operations in the first quarter amounted to EUR 1 (3) million. The restructuring costs in the first quarter were related to the restructuring programme in MacGregor, targeting EUR 10 million annual cost savings compared to 2023. With the restructuring and strengthened project management, Cargotec is continuing to turn around MacGregor's offshore business.

In October 2023, Cargotec initiated cost saving actions in the Cargotec group, Kalmar and Hiab, with the objective to achieve EUR 50 million annual fixed cost savings in 2024. The aim of the cost saving actions was to proactively adjust to an increasingly complex and challenging market environment.

Of the planned total savings of EUR 50 million, EUR 10 million was planned to be achieved in the group, EUR 20 million in Kalmar and EUR 20 million in Hiab. The cost saving actions have to a large extent been executed and the estimated 2024 savings target has been raised to EUR 60 million. With the actions, Kalmar is estimating to achieve EUR 30 million cost savings instead of originally communicated EUR 20 million.

In the first quarter, costs related to the planned separation of Kalmar and Hiab amounted to EUR 16 (0) million. Costs are reported as part of discontinued operations. For the year 2024, costs

related to the planned separation of Kalmar and Hiab is estimated at EUR 65 million. The estimate may be subject to change. As part of the planned separation of Kalmar and Hiab, Cargotec is planning to increase Hiab's administrative presence in Finland. This is not estimated to have a significant impact on Cargotec's comparable operating profit.

More information regarding restructuring costs and other items affecting comparability is available in Note 7, Comparable operating profit.

Personnel

Cargotec employed 11,266 (31 Dec 2023: 11,391) people at the end of the first quarter. Kalmar employed 4,853 (4,907) people, Hiab 3,824 (3,877), MacGregor 1,813 (1,853), and corporate administration and support functions 776 (754). The average number of employees during the first quarter was 11,271 (1–12/2023: 11,669). A part of group employees from various functions is planned to transfer to Kalmar during the second quarter of 2024.

Planned separation of Kalmar and Hiab

On 27 April 2023, Cargotec announced that its Board of Directors had decided to investigate and initiate a process to potentially separate Cargotec's core businesses Kalmar and Hiab into two standalone companies. Cargotec's intention would be to separate Kalmar as a new listed company by means of a partial demerger from Cargotec. The Board of Directors estimated that the separation of Kalmar and Hiab could unlock shareholder value by allowing both businesses to pursue sustainable profitable growth opportunities independently.

On 1 February 2024, Cargotec's Board of Directors approved a demerger plan concerning the separation of Kalmar into an independent listed company. The planned completion date of the demerger is 30 June 2024. The trading in the class B shares of Kalmar on Nasdaq Helsinki is expected to commence on or about 1 July 2024.

The demerger is subject to approval by the Annual General Meeting of Cargotec to be held on 30 May 2024. Certain major shareholders of Cargotec, including Wipunen varainhallinta oy, Mariatorp Oy, Pivosto Oy and Kone Foundation, holding in the aggregate approximately 41 percent of the shares and approximately 75 percent of the votes in Cargotec, have indicated their support for the proposed demerger.

The notice to the AGM was published on 8 April 2024. Cargotec's Board of Directors proposes to the General Meeting that the General Meeting resolves on the partial demerger of Cargotec in accordance with the demerger plan.

Cargotec's Board of Directors also proposes to the General Meeting that Jaakko Eskola be elected as the Chair of the Board and Lars Engström, Marcus Hedblom, Teresa Kemppi-Vasama, Vesa Laisi, Sari Pohjonen and Emilia Torttila-Miettinen be elected as Board members of Kalmar.

In addition, Cargotec's Board of Directors proposes to the General Meeting that a Shareholders' Nomination Board be established for Kalmar and that its Charter is adopted. The Shareholders' Nomination Board of Kalmar would be responsible for preparing proposals to the Annual General Meeting, and if necessary, to the Extraordinary General Meeting, on the number, election, and remuneration of the members of the Board of Directors. The Shareholders' Nomination Board is established until further notice until otherwise decided by the General Meeting.

More information on the Demerger Plan and Annual General Meeting can be found on Cargotec's website www.cargotec.com.

In November 2023, Cargotec's Board of Directors appointed Sami Niiranen as the President of Kalmar. He started in his position on 1 April 2024 and became a member of the Cargotec Leadership team. He shall also be proposed as the President and CEO of the proposed

standalone Kalmar. The composition of Kalmar's leadership team as 1 of April 2024 was announced on 1 February 2024.

On 8 February 2024, Cargotec announced the commencement of written procedures concerning its EUR 100 million 1.250 percent senior unsecured notes due 2025, and EUR 150 million 1.625 percent senior unsecured notes due 2026, to solicit consents, waivers and decisions to amend the terms and conditions as may be required for, or in relation to, the partial demerger of Cargotec. On 26 February 2024, Cargotec announced that the above proposal was approved by a required majority of the holders of the 2025 notes and 2026 notes participating in respective written procedures. The consents and waivers became effective immediately upon approval in the written procedures, and the amendments will become effective at the completion of the demerger which is expected to take place on 30 June 2024. More information can be found from the stock exchange releases published on 8 February 2024, and on 26 February 2024.

The demerger and listing prospectus, expected to be published by Cargotec in May 2024 before the AGM resolving on the demerger, will contain more detailed information on the demerger and Kalmar.

As announced on 14 November 2022, MacGregor will not be part of Cargotec's portfolio in the future. In parallel with the planned demerger, Cargotec's focus remains to continue to look for a solution for MacGregor during 2024. If the planned actions are completed, there would be three separate businesses, Kalmar, Hiab and MacGregor in 2025.

In 2023, Cargotec implemented a large organisational change, moving the majority of group employees to the business areas. A part of group employees from various functions is planned to transfer to Kalmar in the second quarter of 2024.

In the first quarter of 2024, costs related to the planned separation of Kalmar and Hiab amounted to EUR 16 (0) million. Of the costs, EUR 8 million is booked in Kalmar and EUR 7 million in corporate administration and support functions. Costs are reported as part of discontinued operations. For the year 2024, costs related to the planned separation of Kalmar and Hiab is estimated at EUR 65 million. The estimate may be subject to change. In 2023, costs related to the planned separation of Kalmar and Hiab amounted to EUR 28 million.

Sustainability

In the first quarter of 2024, Cargotec continued to prepare for the EU Corporate Sustainability Reporting Directive (CSRD). The focus was on, for example, documenting reporting processes and ensuring that Kalmar has the needed capabilities to execute CSRD reporting as an independent company. During the remaining quarters of 2024, the focus will be on executing CSRD-aligned sustainability reporting and ensuring knowledge transfers to Hiab and MacGregor.

During the quarter, Cargotec announced that it had maintained its excellent A- score in the prestigious CDP environmental disclosure for 2023. CDP is an international not-for-profit organisation that runs a global disclosure system for stakeholders, such as investors, companies, cities and states, to manage their environmental impacts. The A- score places Cargotec in the Leadership band of CDP and higher than both the Europe regional average and the company's sector average. Companies with an A- score show environmental leadership and are implementing current best practices related to climate action and reporting.

In the first quarter, eco portfolio sales for continuing operations decreased by 6 percent and amounted to EUR 174 (186) million, representing 28 (32) percent of continuing operations sales. Eco portfolio sales decreased in the climate solutions category and increased in the circular solutions category. Eco portfolio sales decreased in Hiab and increased in MacGregor. Kalmar's eco portfolio sales for increased by 10 percent and amounted to EUR 176 (160) million, representing 40 (33) percent of Kalmar's sales.

At the end of the first quarter, Cargotec's safety performance, measured by rolling 12 months industrial injury frequency rate (IIFR), was 3.5 (4.8). The IIFR at Cargotec's assembly sites was 1.6 (5.0) and at non-assembly sites it was 5.0 (4.6). Regarding business areas, the IIFR for the first quarter was 4.3 for Kalmar, 2.8 for Hiab and 3.6 for MacGregor. The 2024 IIFR target for each business area is as follows: below 3.5 for Kalmar; below 3.2 for Hiab; below 2.3 for MacGregor.

Leadership Team

On 31 March 2024, Cargotec's Leadership Team consisted of Casimir Lindholm, President and CEO and interim President, Kalmar; Mikko Puolakka, Executive Vice President, CFO; Mikko Pelkonen, Senior Vice President, Human Resources; Mikael Laine, Senior Vice President, Strategy and interim COO, Kalmar; Soili Mäkinen, Senior Vice President, Sustainable Business Development; Outi Aaltonen, Senior Vice President, General Counsel; Carina Geber-Teir, Senior Vice President, Communications; Scott Phillips, President, Hiab; and Leif Byström, President, MacGregor.

On 9 November 2023, Cargotec's Board of Directors appointed Sami Niiranen, M.Sc. Mining, born 1972, as the President of Kalmar and a member of the Cargotec Leadership Team. Niiranen started in his position on 1 April 2024. On the Annual General Meeting resolving on the demerger on 30 May 2024, he shall be proposed as the President and CEO of the proposed standalone Kalmar.

On 1 February 2024, Cargotec announced that, as part of the planned separation of Kalmar by partial demerger, Carina Geber-Teir, Cargotec's Senior Vice President Communications, has been appointed Head of Investor Relations and Communications of Kalmar. Geber-Teir started in this role and joined Kalmar's leadership team on 1 April 2024, after which she is no longer a member of Cargotec's leadership team.

Reporting segments

Kalmar

MEUR	Q1/24	Q1/23	Change	2023
Orders received	402	471	-15 %	1,705
Order book, end of period	971	1,390	-30 %	1,024
Sales	439	485	-10 %	2,050
Service sales	137	147	-7 %	574
% of sales	31 %	30 %		28 %
Operating profit	51.0	62.8	-19 %	264.2
% of sales	11.6 %	12.9 %		12.9 %
Comparable operating profit	59.5	63.2	-6 %	279.4
% of sales	13.5 %	13.0 %		13.6 %
Personnel, end of period	4,853	5,024	-3 %	4,907

In the first quarter, Kalmar's orders received decreased by 15 percent from the comparison period and totalled EUR 402 (471) million. Compared to the comparison period, orders received decreased in all geographical areas. Service orders received increased.

Major orders received by Kalmar in the first quarter included:

2 fully electric and 8 hybrid straddle carriers to a customer in the Netherlands
2 new electric AutoStrads™ and retrofitting of 2 existing hybrid straddle carriers to a customer in the US
6 hybrid straddle carriers to a customer in France.

Sales, orders received, order book, MEUR

Comparable operating profit, MEUR Comparable operating profit, %

Kalmar's order book decreased by 5 percent from the end of 2023, totalling EUR 971 (31 Dec 2023:1,024) million at the end of the first quarter.

Kalmar's first quarter sales decreased by 10 percent from the comparison period and totalled EUR 439 (485) million. Service sales decreased by 7 percent and totalled EUR 137 (147) million, representing 31 (30) percent of sales.

Kalmar's first quarter operating profit totalled EUR 51 (63) million. The operating profit includes EUR -8 (0) million in items affecting comparability, which were related to planning of the separation of Kalmar and Hiab. The comparable operating profit decreased by 6 percent and amounted to EUR 59 (63) million, representing 13.5 (13.0) percent of sales. The comparable operating profit margin increased due to fixed cost saving actions offsetting the lower sales. Kalmar's operative cash flow was strong in the first quarter.

Research and development

Kalmar's research and product development expenditure in the first quarter totalled EUR 12 (13) million, representing 3 (3) percent of sales. In research and development, Kalmar focused on solutions supporting climate targets in the fields of electrification, digitalisation, robotisation and automation as well as projects that aim to improve the competitiveness and cost efficiency of products.

During the first quarter, Kalmar strengthened its continuous commitment to innovations by partnering with Forterra to co-develop an autonomous terminal tractor.

Hiab

MEUR	Q1/24	Q1/23	Change	2023
Orders received	386	380	1 %	1,466
Order book, end of period	770	1,121	-31 %	799
Sales	415	432	-4 %	1,787
Service sales	117	112	4 %	452
% of sales	28 %	26 %		25 %
Operating profit	68.7	61.4	12 %	252.1
% of sales	16.6 %	14.2 %		14.1 %
Comparable operating profit	68.7	61.4	12 %	252.1
% of sales	16.6 %	14.2 %		14.1 %
Personnel, end of period	3,824	3,897	-2 %	3,877

In the first quarter, Hiab's orders received increased by 1 percent from the comparison period and totalled EUR 386 (380) million. Compared to the comparison period, orders received increased in all geographical areas. Service orders received decreased.

Major orders received by Hiab in the first quarter included:

loader cranes to be used in offshore wind turbines. The value of the order was EUR 5 million.
WALTCO tail lifts for a customer in the US. The value of the order was EUR 7 million.

Sales, orders received, order book, MEUR

Comparable operating profit, MEUR Comparable operating profit, %

Hiab's order book decreased by 4 percent from the end of 2023, totalling EUR 770 (31 Dec 2023: 799) million at the end of the first quarter.

Hiab's first quarter sales decreased by 4 percent and totalled EUR 415 (432) million. Service sales increased by 4 percent and amounted to EUR 117 (112) million, representing 28 (26) percent of sales.

Hiab's first quarter operating profit totalled EUR 69 (61) million. The operating profit includes EUR 0 (0) million in items affecting comparability. The comparable operating profit for the first quarter increased by 12 percent and amounted to EUR 69 (61) million, representing 16.6 (14.2) percent of sales. Hiab's comparable operating profit increased due to successful management of inflationary pressures and tight cost control. Hiab's operative cash flow increased from the comparison period.

Research and development

Hiab's research and product development expenditure in the first quarter totalled EUR 9 (7) million, representing 2 (2) percent of sales. In research and development, Hiab focused on solutions supporting climate targets such as digitalisation, electrification, and automation as well as projects that aim to improve the competitiveness and cost efficiency of products.

During the first quarter, Hiab launched HIAB wspr, a portfolio of emission-free and quiet electric hybrid crane solutions able to operate using power from both the truck engine and a separate electric power take-off (ePTO). The battery pack for two of three new models in the thirdgeneration ePTO portfolio from Hiab is integrated on the crane base for easier installation and a more compact size. When using electric power, it is near silent. It also provides the flexibility to operate in low- or no-emission zones, or late at night, thereby increasing business opportunities for Hiab's customers.

MacGregor

MEUR	Q1/24	Q1/23	Change	2023
Orders received	267	208	29 %	816
Order book, end of period	1,028	956	8 %	988
Sales	203	157	29 %	733
Service sales	89	87	2 %	354
% of sales	44 %	56 %		48 %
Operating profit	10.7	-7.4	> 100%	31.8
% of sales	5.3 %	-4.7 %		4.3 %
Comparable operating profit	12.1	0.7	> 100%	32.6
% of sales	6.0 %	0.4 %		4.5 %
Personnel, end of period	1,813	1,975	-8 %	1,853

In the first quarter, MacGregor's orders received increased by 29 percent from the comparison period to EUR 267 (208) million. Compared to the comparison period, orders received increased in EMEA and Asia-Pacific and decreased in Americas. Service orders received decreased.

Major orders received by MacGregor in the first quarter included:

• a 100-tonne active heave-compensated (AHC) crane, a 20T Offshore crane and a 3T deck crane, and an OnWatch solution including a worldwide 24/7 technical service support for a customer in Italy

Sales, orders received, order book, MEUR

Comparable operating profit, MEUR Comparable operating profit, %

MacGregor's order book increased by 4 percent from the end of 2023, totalling EUR 1,028 (31 Dec 2023: 988) million at the end of the first quarter.

MacGregor's first quarter sales increased by 29 percent and amounted to EUR 203 (157) million. Service sales increased by 2 percent and totalled EUR 89 (87) million, representing 44 (56) percent of sales.

MacGregor's first quarter operating profit totalled EUR 11 (-7) million. Operating profit includes EUR -1 (-8) million in items affecting comparability related to the ongoing restructuring programme. The comparable operating profit increased by more than 100 percent and totalled EUR 12 ( 1) million, representing 6.0 (0.4) percent of sales. Comparable operating profit increased due to higher sales in the merchant business.

As announced on 14 November 2022, MacGregor will not be part of Cargotec's portfolio in the future. Cargotec will continue to focus on a turnaround of the business and to look for a solution for MacGregor in 2024.

MacGregor still has challenges with offshore wind related projects containing new technologies and the offshore business is loss making. MacGregor's business in the merchant ship segment and service business has been profitable. Excluding the offshore business, MacGregor's comparable operating profit margin in the first quarter would have been around 11 percent. MacGregor's offshore equipment related order book has been reduced to EUR 87 (134) million at the end of the first quarter. The order book includes approximately 10 pilot projects containing advanced technologies. MacGregor has an ongoing dispute related to one monopile installation vessel project.

To strengthen competitiveness and achieve profitable growth, MacGregor combined former Merchant and Offshore divisions to establish a new Equipment and Solutions division as of 1 January 2024.

Research and development

MacGregor's research and product development expenditure in the first quarter totalled EUR 2 ( 3) million, representing 1 ( 2) percent of sales. In research and development, MacGregor focused on solutions supporting climate targets such as digitalisation, electrification and automatisation, as well as projects that aim to improve the competitiveness and cost efficiency of products.

During the first quarter, MacGregor launched a self-unloader vibration feeder, "GravityVibeTM", which is a new and augmented gravity self-unloading system that will allow bulk carriers to deliver a wider variety of cargo, in greater volume. Equipped with a patent-pending vibrating unloader, the new system minimises internal friction, facilitating the discharge of coarse materials, like wood chips from the cargo hold.

Shares and trading

Share capital, own shares and share issue

Cargotec Corporation's share capital totalled EUR 64,304,880 at the end of March 2024. The number of class B shares was 55,182,079, while the number of class A shares totalled 9,526,089.

On 26 March 2024, Cargotec's Board of Directors decided on a directed share issue related to the reward payments for share-based incentive programmes. The share reward payments were related to the performance periods 2021–2023, 2022–2024, and 2023–2025 of Cargotec's sharebased incentive programmes, restricted share programmes 2022–2024 and 2023–2025, and the restricted share unit programme 2022–2024.

In the share issue, 172,993 own class B shares held by the company were transferred on 28 March 2024 without consideration to the key employees participating in the share-based incentive programmes in accordance with the programme-specific terms and conditions. More detailed information about the launch and the terms and conditions of these programmes is available in the stock exchange releases published on 4 February 2021,13 May 2022 and 2 February 2023.

The decision on the directed share issue was based on the authorisation granted to the Board of Directors by the Annual General Meeting on 23 March 2023. According to the authorisation, the Board of Directors can decide on a share issue amounting to a maximum of 952,000 class A shares and 5,448,000 class B shares.

On 8 February 2024, Cargotec announced that the Board of Directors had decided to exercise the authorisation of the Annual General Meeting on 23 March 2023 to repurchase company's own shares. According to the decision, Cargotec repurchased 150,000 class B shares to be used as reward payments for Cargotec's share-based incentive programmes. According to the authorisation given to the Board of Directors by the Annual General Meeting, the maximum amount of shares that can be acquired is 952,000 class A shares and 5,448,000 class B shares. Cargotec repurchased 150,000 own class B shares at public trading on Nasdaq Helsinki Ltd. at an average price of 61.6730 EUR between 9–29 February 2024. According to the same authorisation, Cargotec had repurchased 400,000 own shares in July–August 2023.

At the end of March 2024, Cargotec held a total of 384,050 own class B shares, accounting for 0.59 percent of the total number of shares and 0.26 percent of the total number of votes. The number of outstanding class B shares totalled 54,798,029.

Share-based incentive programmes

During the first quarter of the financial year 2024, Cargotec had several share-based incentive programmes in place for the group's key employees. During the quarter, the Board of Directors of Cargotec Corporation did not establish any new share-based incentive programmes.

The following share-based incentive programmes established by the Board of Directors of Cargotec during the past financial years were in operation during the first quarter of 2024:

Performance share programme 2020–2024, performance period 2022–2024. The performance period includes three measuring periods of one calendar year. For its third measuring period 2024, the potential reward will be based on the eco portfolio share in orders received for the key employees of the business areas Kalmar and Hiab. For Cargotec Corporate key employees, the performance criterion is Cargotec's eco portfolio share in orders received. The programme is directed to approximately 100 key employees, including the members of Cargotec Leadership Team. The rewards to be paid on the basis of the performance period will amount up to an approximate maximum total of 280,000 Cargotec's class B shares.
Performance share programme 2023–2025, performance period 2023–2025. The performance period includes three measuring periods of one calendar year. For its second measuring period 2024, the potential reward will be based on the service gross profit for the key employees of the business areas Kalmar and Hiab. For Cargotec Corporate key employees, the performance criterion is Cargotec's service gross profit. The programme is directed to approximately 100 key employees, including the members of Cargotec Leadership Team. The rewards to be paid on the basis of the performance period will amount up to an approximate maximum total of 200,000 Cargotec's class B shares.
Performance share programme 2024–2026, performance period 2024–2026. The performance period includes three measuring periods of one calendar year. For the key employees of the business areas Kalmar and Hiab, the potential reward of the programme from the first measuring period 2024 will be based on the business areas' earning per share (EPS). For the Cargotec Corporate key employees, the performance criteria is Cargotec's earning per share (EPS). The programme is directed to approximately 100 key employees, including the members of Cargotec Leadership Team.The rewards to be paid on the basis of the performance period will amount up to an approximate maximum total of 222,000 Cargotec's class B shares.
Restricted share programme 2020–2024, earnings period 2022–2024. The rewards to be paid on the basis of the performance period will amount up to an approximate maximum total of 31,000 Cargotec's class B shares.
Restricted share programme 2023–2025. The rewards to be paid on the basis of the programme will amount up to an approximate maximum total of 24,000 Cargotec's class B shares.
Restricted share programme 2024–2026. The rewards to be paid on the basis of the programme will amount up to an approximate maximum total of 20,000 Cargotec's class B shares.
Restricted share unit programme 2023–2025. The reward from the programme is conditional on the achievement of strategic goals set by the Board of Directors. The reward is paid in the beginning of 2025. The shares received as a reward from the programme may not be sold, transferred, pledged or otherwise assigned during a lock-up period which ends six months after the reward payment. The programme is intended for approximately 50 Cargotec group's key employees, including selected Leadership Team members. The rewards to be allocated on the basis of the programme will amount up to an approximate maximum total of 268,750 Cargotec's class B shares.

Information about the impact which the planned separation of Cargotec's core businesses Kalmar and Hiab into standalone companies will have on the incentive programmes will be provided in due course when additional information about the separation and its progress is provided.

Market capitalisation and trading

Trading on Nasdaq Helsinki Oy6	Q1/2024	Q1/2023
Total market value of class B shares, MEUR7	3,537	2,471
Market capitalisation of class A and B shares at the end of the period, MEUR8	4,151	2,897
Closing price of class B share, EUR9	64.55	44.78
Volume-weighted average price of class B share, EUR	57.85	45.83
Highest quotation of class B share, EUR	66.20	49.76
Lowest quotation of class B share, EUR	48.36	41.16
Trading volume, million class B shares	6	6
Turnover of class B shares, MEUR	360	267

At the end of the period, the number of registered shareholders was 36,860. The number of Finnish household shareholders was 35,044, corresponding to around 16 percent ownership of Cargotec's listed B shares. At the end of the period, around 30 percent of Cargotec's listed B shares were nominee registered or held by non-Finnish holders.

Short-term risks and uncertainties

Developments in the global economy and cargo flows have a direct effect on Cargotec's operating environment and customers' willingness to invest. Changes in the global economy and supply chains, geopolitical tensions and wars, energy availability, sanctions and trade wars can have an impact on global flow of goods and therefore on the demand of Cargotec's solutions.

Still high borrowing costs and withdrawal of fiscal support, and longer-term effects from the COVID-19 pandemic and Russia's invasion of Ukraine; weak growth in productivity; and increasing geo-economic fragmentation are slowing down economic growth.

In the current market situation, demand for Cargotec's solutions might be lower than in previous years. Customers may also try to postpone or cancel orders or demand lower prices. Despite planned cost savings, lower production volumes could impact Cargotec's profitability margins negatively.

Availability of components and raw materials have improved from the previous years. However, disruptions in the supply chain are still possible. Component availability problems as well as increased labour and energy costs could elevate manufacturing costs and increase challenges to control costs and pass them on to the prices of end products.

The deterioration of the global economic outlook and access to finance as well as interest rates that have remained higher than in the past decade can lead to economic and financial difficulties among Cargotec's customers. In some cases their financial position may rapidly deteriorate significantly or even lead to insolvency. The turnover, availability, and cost of skilled personnel can create disturbances to Cargotec and its supplier operations.

Container traffic growth rate and a possible slowdown or contraction in global economic growth may in the longer term have an effect on Kalmar's demand. Kalmar's project executions face risks related to schedule, cost and delivery guarantees.

In addition to economic growth, for example, Hiab's demand is also impacted by the development of the construction market. Low new building activity can negatively impact demand of a part of Hiab's portfolio, especially in Europe. A significant share of Hiab's orders are from the United States. Even though cash flows are hedged for the existing order book, the weakening of the US dollar could in the longer term weaken Hiab's results. Similarly, a stronger dollar can improve

⁶ Class B shares were also traded in several alternative marketplaces.

⁷ At the end of the period, excluding own shares held by the company.

⁸ Excluding own shares held by the company, unlisted class A shares are valued at the average price of class B shares on the last trading day of the period.

⁹ On the last trading day of the period.

Hiab's results. Hiab's solutions are installed on trucks, and truck delivery bottlenecks can have a negative impact on Hiab's sales development.

MacGregor's market development is affected by the tightening emission regulation for ships and related uncertainty. The increases in the new vessel construction costs and high amounts of order bookings at shipyards may slow down new vessel orders. Global decarbonisation targets have led to a fall in investments by the oil industry, which has long been reflected in low offshore vessel investments. Downward revision of market estimates or rising interest rates could result in an impairment of MacGregor's goodwill. Project executions face risks related to schedule, cost and delivery guarantees, especially those related to offshore business and new product developments. Currently MacGregor has approximately 10 loss making offshore pilot projects containing advanced technologies in the order book. MacGregor has an ongoing dispute related to a monopile installation equipment project.

In November 2022, Cargotec's Board of Directors concluded that MacGregor will not be part of Cargotec's portfolio in the future. Taking into account MacGregor's losses in recent years and significant project cost overruns in the offshore business, in the sale alternative the buyer's view of the company's value may differ significantly from Cargotec's estimate, which could result in a write-down of MacGregor's book value.

In April 2023, Cargotec announced that its Board of Directors had decided to investigate and initiate a process to potentially separate Cargotec's core businesses Kalmar and Hiab into two standalone companies. On 1 February 2024, Cargotec's Board of Directors approved a demerger plan concerning the separation of Kalmar into an independent listed company. The demerger is subject to approval by the Annual General Meeting of Cargotec to be held on 30 May 2024. The planned actions can include risks related to the retention of skilled personnel, customer relationships, the execution of potential transactions, and costs, for example. Changes in operating models, combined with tightening tax regulation, may lead to additional tax payments.

Cargotec is exposed to climate-related risks via environmental, regulatory, and technological changes, and due to the commitments it has made to reduce emissions. The evaluation of the financial impacts of climate change on Cargotec is complicated because the occurrence and timing of the resulting effects are difficult to predict, let alone quantify. To reduce emissions generated in its supply chain, Cargotec must reduce emissions through its whole supply chain from raw materials to components and manufacturing, which may result in changes in the suppliers used, limit the number of potential suppliers, and increase costs.

The reduction of emissions related to the use of Cargotec's products can only be achieved if there is sufficient demand for low-emission products. In order to achieve this, Cargotec must succeed in developing and selling low-emission products. Cargotec's product development has a critical role in achieving this. Cargotec has invested heavily to electrify its product offering and customers are

increasingly choosing low-emission products although the majority of products sold are still based on combustible engine technology. In the future, Cargotec's product offering may be based on multiple low-emission technologies, which may increase complexity and cost.

Reaching the set emission targets requires efforts in every aspect of Cargotec's business. In addition to being exposed to climate-related risks, the ongoing transition process causes new risks, the realisation of which can have significant financial effects. These effects can lead, for example, to impairments of assets due to the shortened life cycles of products, as well as additional costs related to the introduction of new technologies, which may arise in product development, the realisation of project risks, the growth of inventories, and new types of warranty defects. In addition, tightening regulation may directly limit Cargotec's product offering.

Cargotec is involved in certain legal disputes, investigations and trials. The interpretation of international agreements and legislation may weaken the predictability of the end results of legal disputes and trials.

Risks regarding Cargotec's acquisitions are related to, for example, the knowledge of local markets, authority processes, customers, corporate culture, integration, costs, achieving targets, as well as key employees.

Information security risks are also materially related to Cargotec's operations. A cyber attack on systems that are critical to the operations of the company, its customers or suppliers can disrupt operational stability, lead to a decrease in sales and damage Cargotec's reputation, for example.

There are also ethical risks related to the industries and the geographical scope where Cargotec operates. Cargotec has increased actions to ensure compliance with its business guidelines, regulations and ethical principles. Related internal processes are constantly being developed.

More information on risks is available at www.cargotec.com, under Investors > Governance > Internal control and risk management.

Board of Directors' proposal on the distribution of 2023 profit

The parent company's distributable equity on 31 December 2023 was EUR 491,839,387.70. The Board of Directors proposes to the Annual General Meeting convening on 30 May 2024 that of the distributable profit, a dividend of EUR 2.14 for each of the 9,526,089 class A shares and EUR 2.15 for each of the 54,775,036 (31 December 2023) outstanding class B shares be paid, totalling EUR 138,152,157.86. The remaining distributable equity, EUR 353,687,229.84 will be retained and carried forward.

The dividend shall be paid to shareholders who on the record date for dividend distribution, 3 June 2024, are registered as shareholders in the company's shareholder register. The dividend payment date proposed by the Board of Directors is 10 June 2024.

No significant changes have occurred in Cargotec's financial position after the end of the financial year. Liquidity is at a healthy level and the proposed distribution of dividend poses no risk on the company's financial standing.

Events after the reporting period

There were no material events after the reporting period.

Outlook for 2024 unchanged

Cargotec estimates¹⁰ Hiab's comparable operating profit margin in 2024 to be above 12 percent, Kalmar's comparable operating profit margin in 2024 to be above 11 percent, and MacGregor's comparable operating profit in 2024 to improve from 2023 (EUR 33 million).

Annual General Meeting 2024

The Annual General Meeting of Cargotec Corporation will be held on Thursday, 30 May 2024. The notice of the Annual General Meeting 2023 was published on 8 April 2024. More information about the Annual General Meeting 2024 is available at Cargotec's website www.cargotec.com/agm.

Capital Markets Day 2024

Cargotec organises its Capital Markets Day 2024 in Helsinki, Finland on Tuesday the 28th and Wednesday the 29th May. Targeted for analysts and investors, the two-day event focuses on Hiab and Kalmar as separate businesses, and their further value creation potential following Cargotec's Board of Directors' decision to propose to separate Kalmar as a new standalone listed company on 30 June 2024.¹¹ For registration and more information, please visit www.cargotec.com/cmd24.

Financial calendar 2024

Annual General Meeting of Cargotec Corporation, Thursday, 30 May 2024
Half year financial report January–June 2024, on Thursday, 8 August 2024
Interim report January–September 2024, on Wednesday, 23 October 2024

Helsinki, 29 April 2024 Cargotec Corporation Board of Directors

This interim report is unaudited.

¹⁰ The business area 2024 profitability outlook is presented using the same principles which are applied in the 2023 external financial reporting.

¹¹ The demerger is subject to approval at Cargotec's Annual General Meeting on 30 May 2024.

Consolidated statement of income

MEUR	Note	Q1/24	Q1/23	2023
Sales	5	617.3	588.8	2,519.4
Cost of goods sold		-459.3	-455.9	-1,923.0
Gross profit		158.0	132.9	596.5
Gross profit, %		25.6%	22.6%	23.7%
Selling and marketing expenses		-29.6	-30.8	-128.0
Research and development expenses		-11.7	-10.3	-44.4
Administration expenses		-48.0	-47.7	-198.2
Restructuring costs	7	-1.4	-3.3	-13.4
Other operating income		0.7	1.9	8.7
Other operating expenses		0.5	-1.0	12.7
Share of associated companies' and joint ventures' net result		1.2	0.0	2.1
Operating profit		69.7	41.7	236.0
Operating profit, %		11.3%	7.1%	9.4%
Finance income		4.3	1.3	7.0
Finance expenses		-5.8	-7.5	-23.5
Profit before taxes		68.2	35.4	219.5
Profit before taxes, %		11.1%	6.0%	8.7%
Income taxes	9	-21.2	-11.7	-57.1
Profit for the period, continuing operations		47.1	23.7	162.4
Profit for the period, discontinued operations	17	34.2	48.9	186.2
Profit for the period		81.2	72.6	348.7
Profit for the period, %		13.2%	12.3%	13.8%
Profit for the period attributable to:
Shareholders of the parent company		81.1	72.7	346.9
Non-controlling interest		0.1	-0.1	1.8
Total		81.2	72.6	348.7

MEUR	Note	Q1/24	Q1/23	2023
Earnings per share for profit attributable to the shareholders of the parent company:
Basic earnings per share, EUR
Continuing operations		0.73	0.37	2.49
Discontinued operations	17	0.53	0.76	2.89
Diluted earnings per share, EUR
Continuing operations		0.73	0.37	2.48
Discontinued operations	17	0.53	0.76	2.88

Consolidated statement of comprehensive income

MEUR	Q1/24	Q1/23	2023
Profit for the period	81.2	72.6	348.7

Other comprehensive income
Items that cannot be reclassified to statement of income:
Actuarial gains (+) / losses (-) from defined benefit plans	0.7	0.2	-7.4
Taxes relating to items that cannot be reclassified to statement of income	-0.1	0.0	1.5
Items that can be reclassified to statement of income:
Gains (+) / losses (-) on cash flow hedges	-13.7	9.2	19.9
Gains (+) / losses (-) on cash flow hedges transferred to statement of income	4.8	-6.8	-19.2
Translation differences	-19.8	-30.1	-22.5
Taxes relating to items that can be reclassified to statement of income	1.4	-1.0	-0.5
Share of other comprehensive income of associates and JV, net of tax	0.7	0.7	0.7
Other comprehensive income, net of tax	-26.0	-27.9	-27.4

Comprehensive income for the period	55.2	44.7	321.2
Comprehensive income for the period attributable to:
Shareholders of the parent company	55.1	44.8	319.5
Non-controlling interest	0.2	-0.1	1.7
Total	55.2	44.7	321.2

Comprehensive income for the period attributable to Shareholders of the parent company:
Continuing operations	22.1	-6.2	135.6
Discontinued operations	32.9	51.1	183.9
Total	55.1	44.8	319.5

Consolidated balance sheet

ASSETS, MEUR	Note	31 Mar 2024	31 Mar 2023	31 Dec 2023
Non-current assets
Goodwill		608.6	877.4	878.1
Intangible assets		97.8	123.7	118.4
Property, plant and equipment		168.4	429.5	444.9
Investments in associated companies and joint ventures	16	28.8	69.0	76.6
Share investments	16	0.0	0.0	0.0
Loans receivable and other interest-bearing assets	11	—	0.1	0.1
Deferred tax assets		70.7	129.4	122.2
Derivative assets	12	—	1.1	0.0
Other non-interest-bearing assets		3.7	7.3	5.8
Total non-current assets		978.0	1,637.4	1,646.0

Current assets
Inventories		581.9	1,128.2	1,033.8
Loans receivable and other interest-bearing assets*	11	0.3	1.7	3.4
Income tax receivables		9.5	39.0	18.5
Derivative assets	12	5.0	17.9	54.0
Accounts receivable		433.7	748.5	723.8
Contract assets		29.9	73.5	47.3
Other non-interest-bearing assets		116.8	161.0	164.9
Cash and cash equivalents*	11	458.2	453.3	684.7
Total current assets		1,635.3	2,623.1	2,730.4
Assets held for distribution to owners	17	1,701.2	—	—

Total assets		4,314.5	4,260.5	4,376.5

*Included in interest-bearing net debt.

EQUITY AND LIABILITIES, MEUR	Note	31 Mar 2024	31 Mar 2023	31 Dec 2023
Equity attributable to the shareholders of the parent company
Share capital		64.3	64.3	64.3
Share premium		98.0	98.0	98.0
Translation differences		-76.2	-64.0	-56.4
Fair value reserves		-9.3	-1.4	-2.5
Reserve for invested unrestricted equity		26.0	52.5	35.3
Retained earnings		1,697.5	1,337.7	1,613.6
Total equity attributable to the shareholders of the parent company		1,800.3	1,487.0	1,752.3
Non-controlling interest		1.7	0.6	1.5
Total equity		1,802.0	1,487.5	1,753.8
Non-current liabilities
Interest-bearing liabilities*	11	244.2	603.4	708.2
Deferred tax liabilities		13.0	31.1	21.9
Pension obligations		49.2	82.4	89.0
Provisions		2.2	6.3	5.6
Other non-interest-bearing liabilities		8.1	80.9	87.1
Total non-current liabilities		316.8	804.1	911.8
Current liabilities
Current portion of interest-bearing liabilities*	11	128.0	225.7	142.9
Other interest-bearing liabilities*	11	2.2	19.4	15.6
Provisions		71.6	174.6	154.9
Income tax payables		43.8	58.8	54.3
Derivative liabilities	12	15.0	11.8	26.0
Accounts Payable		294.5	640.8	511.2
Contract liabilities		253.5	314.9	374.5
Other non-interest-bearing liabilities		225.7	522.8	431.5
Total current liabilities		1,034.3	1,968.8	1,710.9
Liabilities associated with assets held for distribution to owners	17	1,161.3	—	—
Total equity and liabilities		4,314.5	4,260.5	4,376.5

Consolidated statement of changes in equity

	Attributable to the shareholders of the parent company					Non	Total equity
MEUR	Share capital	Share premium	Translation differences	Fair value reserves	Reserve for invested unrestricted equity	Retained earnings	Total	controlling interest
Equity 1 Jan 2024	64.3	98.0	-56.4	-2.5	35.3	1,613.6	1,752.3	1.5	1,753.8
Profit for the period						81.1	81.1	0.1	81.2
Cash flow hedges				-6.8			-6.8	—	-6.8
Translation differences			-19.8				-19.8	0.0	-19.8
Actuarial gains and losses from defined benefit plans						0.6	0.6	—	0.6
Comprehensive income for the period*	—	—	-19.8	-6.8	—	81.7	55.1	0.2	55.2
Treasury shares acquired					-9.3		-9.3		-9.3
Share-based payments						2.3	2.3		2.3
Transactions with owners of the company	—	—	—	—	-9.3	2.3	-7.0	—	-7.0
Transactions with non-controlling interests						—	—	—	—
Equity 31 Mar 2024	64.3	98.0	-76.2	-9.3	26.0	1,697.5	1,800.3	1.7	1,802.0
Equity 1 Jan 2023	64.3	98.0	-34.0	-3.5	52.8	1,350.0	1,527.6	0.7	1,528.3
Profit for the period						72.7	72.7	-0.1	72.6
Cash flow hedges				2.0			2.0	—	2.0
Translation differences			-30.1				-30.1	0.0	-30.1
Actuarial gains and losses from defined benefit plans						0.1	0.1	—	0.1
Comprehensive income for the period*	—	—	-30.1	2.0	—	72.9	44.8	-0.1	44.7
Dividends paid						-86.9	-86.9	—	-86.9
Treasury shares acquired					-0.3		-0.3		-0.3
Share-based payments						1.8	1.8		1.8
Transactions with owners of the company	—	—	—	—	-0.3	-85.2	-85.5	—	-85.5
Transactions with non-controlling interests						—	—	—	—
Equity 31 Mar 2023	64.3	98.0	-64.0	-1.4	52.5	1,337.7	1,487.0	0.6	1,487.5

*Net of tax

Consolidated statement of cash flows

Cash flow statement includes continuing and discontinued operations.

MEUR	Note	Q1/24	Q1/23	2023
Net cash flow from operating activities
Profit for the period		81.2	72.6	348.7
Depreciation, amortisation and impairment	8	21.3	28.5	114.9
Finance income and expenses		4.3	8.3	30.8
Income taxes	9	34.0	23.1	104.3
Change in net working capital		34.4	-103.9	-46.5
Other adjustments		-1.2	-2.1	-8.0
Cash flow from operations before finance items and taxes		173.9	26.5	544.2
Cash flow from finance items and taxes		-14.3	2.0	-108.3
Net cash flow from operating activities		159.7	28.4	435.9
Net cash flow from investing activities
Acquisitions of businesses, net of cash acquired	15	-1.4	-15.7	-25.7
Disposals of businesses, net of cash sold	15	2.1	7.6	11.1
Cash flow from investing activities, other items		-13.7	-9.1	-47.1
Net cash flow from investing activities		-13.0	-17.3	-61.8

MEUR	Note	Q1/24	Q1/23	2023
Net cash flow from financing activities
Treasury shares acquired		-9.3	-0.3	-17.5
Repayments of lease liabilities		-12.3	-11.5	-46.9
Proceeds from long-term borrowings		0.0	—	50.9
Repayments of long-term borrowings		-100.0	—	-38.2
Proceeds from short-term borrowings		0.0	11.6	10.6
Repayments of short-term borrowings		-1.9	—	-3.9
Dividends paid		—	—	-87.3
Net cash flow from financing activities		-123.4	-0.3	-132.1

Change in cash and cash equivalents		23.3	10.9	242.0

Cash and cash equivalents, and bank overdrafts at the beginning of period		680.8	445.4	445.4
Effect of exchange rate changes		-3.1	-5.8	-6.6
Cash and cash equivalents, and bank overdrafts included in the assets held for
distribution to owners	17	-242.8	—	—
Cash and cash equivalents, and bank overdrafts at the end of period		458.2	450.4	680.8

Bank overdrafts at the end of period		0.0	2.9	3.8
Cash and cash equivalents at the end of period		458.2	453.3	684.7

Notes to the interim report

1. General information

Cargotec Corporation (1927402-8) is a limited liability company domiciled in Helsinki, Finland. The registered address is Porkkalankatu 5, 00180 Helsinki, Finland. Cargotec Corporation and its subsidiaries form the Cargotec Group (later referred to as Cargotec or company). Cargotec Corporation's class B shares are quoted on Nasdaq Helsinki since 1 June 2005.

2. Accounting principles

The interim report has been prepared according to IAS 34 Interim Financial Reporting. The accounting policies adopted are consistent with those of the annual financial statements for 2023 and comply with changes in IAS/IFRS standards effective from 1 January 2024 that had no material impact on the interim report.

All figures presented have been rounded, which may cause, for example, the sum of individual figures to deviate from the presented sum total.

As announced in the stock exchange release published on February 1, 2024, the board of Cargotec Oyj ("Cargotec") has approved a demerger plan for the separation of the Kalmar business area into an independent listed company ("Demerger"). The planned implementation date of the demerger is 30 June 2024. The demerger is conditional on the approval of Cargotec's annual general meeting to be held on May 30, 2024. Certain of Cargotec's largest shareholders, including Wipunen varainhallinta oy, Mariatorp Oy, Pivosto Oy and Koneen säätiö, which together own approximately 41 percent of Cargotec's shares and approximately 75 percent of Cargotec's votes, have expressed their support for the proposed Demerger.

As a result of the proposed Demerger, Cargotec presents the Kalmar business area as discontinued operations in accordance with IFRS 5 Non-current assets held for sale and discontinued operations starting from the first quarter of 2024. In accordance with the IFRS 5 standard, the net result of discontinued operations is presented in the consolidated income statement separately from the income and expenses of continuing operations (Hiab and MacGregor), and in the balance sheet, assets and liabilities related to Kalmar are presented separately in the lines of assets and liabilities classified as held for distribution to owners. The cash flow statement and statement of changes in equity are presented normally, including Kalmar. Additional information about Kalmar's income statement, balance sheet and cash flows is presented in note 17, Discontinued operations, and additional information about the demerger plan is presented in note 18, Demerger plan.

In the income statement, the comparison periods have been adjusted accordingly. The balance sheet has not been adjusted. The presented discontinued operations include revenue and expenses directly related to the Kalmar business area, as well as other income and expenses related to continuing operations that are not expected to continue after the Demerger or that would have been avoided without the Demerger. The balance sheet items that are presented as classified as distributed to the owners include, in addition to the Kalmar segment's balance sheet items, the balance sheet items that will leave Cargotec as a result of the Demerger, and in accordance with IFRS 5, no depreciation is performed on these. Due to the reasons mentioned above, the financial information of Cargotec presented as continuing operations and of Kalmar business area presented as discontinued operations do not reflect the previous or future profitability of either business as separate independent operations before or after the Demerger.

The adjusted financial information presented in this release is unaudited. Additional information about the restated comparative information has been published in a stock exchange release on April 8, 2024.

3. Prevailing economic uncertainty

Persistently high borrowing costs along with the withdrawal of fiscal support, and longer-term effects from the COVID-19 pandemic and Russia's invasion of Ukraine, coupled with weak productivity growth and escalating geo-economic fragmentation are hampering economic growth.

Availability of components and raw materials improved towards the end of the year 2023. However, disruptions in the supply chain are still possible, especially due to the recent events in the Middle East. Component availability problems as well as increased labour and energy costs

could elevate manufacturing costs and increase challenges to control costs and pass them on to the prices of end products.

Deterioration of the global economic outlook and access to finance as well as increases in interest rates can lead to economic and financial difficulties among Cargotec's customers. In some cases their financial position may rapidly deteriorate significantly or even lead to insolvency. The turnover, availability, and cost of skilled personnel can create disturbances to Cargotec and its supplier operations.

MacGregor goodwill impairment testing

MacGregor's goodwill impairment testing was renewed on 31 March 2024 due to the low level of MacGregor's recoverable amount in relation to the assets being tested. Cargotec announced in November 2022 that MacGregor will not be part of Cargotec's portfolio in the future. Cargotec continues to focus on a turnaround of the business and is looking for a solution for MacGregor in 2024. As a result of the decision, the recoverable amount of the MacGregor segment is determined in the goodwill impairment testing based on the fair value less costs to sell. The testing indicated that the recoverable amount exceeded the tested assets by a EUR 146.0 million (December 31, 2023: EUR 142.0 million). The post-tax WACC (weighted average cost of capital) used in the testing was 7.5 (7.7) percent.

Based on the performed impairment testing, no impairment loss has been recorded. However, MacGregor's recoverable amount remains low relative to testable assets and is sensitive to changes in WACC and forecasts. In addition, in the sale alternative, the refinement of MacGregor's fair value may lead to a further impairment of goodwill.

The goodwill of the MacGregor segment was EUR 371.3 (December 31, 2023: 379.5) million at the time of reporting. As part of MacGregor's impairment testing, sensitivity analyses have been performed for the key assumptions based on three different scenarios. The changes tested in the analyses are a 2 percentage point increase in the discount rate in the first scenario, a 10 percent decrease in turnover and a 2 percentage point decrease in operating profit margin throughout the estimation period in the second scenario, and the combined effect of the previous scenarios in the third scenario. The results of the sensitivity analysis are presented in the table below.

MacGregor goodwill sensitivity analysis

		Sensitivity analysis scenarios and results
		Scenario 1	Scenario 2	Scenario 3
	Recoverable amount in excess of book value of assets, MEUR	WACC +2 percentage points	Sales -10 percent and operating profit -2 percentage points	Sales -10 percent, operating profit -2 percentage points and WACC +2 percentage points
31 Mar 2024	146,0	No impairment*	Impairment**	Impairment
31 Dec 2023	142.0	No impairment*	Impairment**	Impairment

*Threshold for impairment was WACC +2.1 percentage points (31 Dec 2023: +2.1 percentage points). **Threshold for impairment was estimation period sales -10 percent and operating profit -0.9 percentage points (31 Dec 2023: estimation period sales -10 percent and operating profit -0.9 percentage points).

Due to the current level of excess value of MacGregor's recoverable amount compared to the book value of assets, should the scenarios considered in the sensitivity analysis realise, the amount to be written off would be; EUR 101 (96) million in the second scenario, and EUR 155 (151) million in the third.

Financial risks related to climate change

Cargotec is exposed to climate-related risks via environmental, regulatory, and technological changes, and due to the commitments it has made to reduce emissions. Evaluation of the financial impacts of climate change on Cargotec is complicated because the occurrence and timing of the resulting effects are difficult to predict, let alone quantify.

More information about the effects of climate-related risks on Cargotec and Cargotec's commitments to reduce its carbon dioxide emissions is given in the 2023 annual report.

4. Segment information

Cargotec's management and the Board of Directors monitor Kalmar as before, which is why in the presented operating profit, depreciation and amortisation, and EBITDA figures below, depreciations of Kalmar's property, plant and equipment, and amortisations of intangible assets have continued normally, unlike in other parts of this interim report where Kalmar's depreciation

and amortisation have been suspended due to the classification of the business as a discontinued operation.

Q1/24	Q1/23	2023
439	485	2,050
415	432	1,787
203	157	733
0	0	0
1,056	1,074	4,569
439	485	2,049
617	589	2,519

Sales by geographical area, MEUR	Q1/24	Q1/23	2023
EMEA	487	512	2,059
Americas	367	412	1,717
Asia-Pacific	202	151	792
Cargotec, total	1,056	1,074	4,569

Sales by geographical area, MEUR	Q1/24	Q1/23	2023
EMEA	271	315	1,237
Americas	199	176	766
Asia-Pacific	147	97	516
Continuing operations, total	617	589	2,519

Sales by geographical area, %	Q1/24	Q1/23	2023
EMEA	46%	48%	45%
Americas	35%	38%	38%
Asia-Pacific	19%	14%	17%
Cargotec, total	100 %	100 %	100 %

Sales by geographical area, %	Q1/24	Q1/23	2023
EMEA	44%	54%	49%
Americas	32%	30%	30%
Asia-Pacific	24%	16%	21%
Continuing operations, total	100 %	100 %	100 %

Operating profit and EBITDA, Cargotec, total,

Q1/24	Q1/23	2023
51.0	62.8	264.2
68.7	61.4	252.1
10.7	-7.4	31.8
-17.3	-12.8	-64.4
113.0	104.0	483.8
27.8	28.5	114.9
140.8	132.5	598.7

*Includes the effects of allocating the acquisition

cost of businesses	Q1/24	Q1/23	2023
Kalmar	-0.2	-0.2	-0.8
Hiab	-0.8	-0.8	-3.1
MacGregor	-1.7	-1.8	-6.9
Effects of allocating the acquisitions cost of
businesses in total	-2.7	-2.8	-10.8

Operating profit and EBITDA, Continuing

operations, MEUR	Q1/24	Q1/23	2023
Operating profit	69.7	41.7	236.0
Depreciation, amortisation and impairment*	14.3	14.4	57.7
EBITDA	84.0	56.0	293.7

Operating profit, %	Q1/24	Q1/23	2023
Kalmar	11.6 %	12.9 %	12.9 %
Hiab	16.6 %	14.2 %	14.1 %
MacGregor	5.3 %	-4.7 %	4.3 %
Cargotec, total	10.7 %	9.7 %	10.6 %
Continuing operations, total	11.3 %	7.1 %	9.4 %

Items affecting comparability, MEUR	Q1/24	Q1/23	2023
Kalmar
Restructuring costs	-0.1	-0.4	-1.2
Other items affecting comparability	-8.4	—	-14.0
Items affecting comparability, total	-8.5	-0.4	-15.2
Hiab	Q1/24	Q1/23	2023
Restructuring costs	—	0.0	0.1
Other items affecting comparability	-0.0	0.0	0.0
Items affecting comparability, total	-0.0	0.0	0.1
MacGregor	Q1/24	Q1/23	2023
Restructuring costs	-1.4	-3.3	-13.5
Other items affecting comparability	0.0	-4.7	12.7
Items affecting comparability, total	-1.4	-8.0	-0.8

Corporate administration and support functions	Q1/24	Q1/23	2023
Restructuring costs	0.0	0.0	0.0
Other items affecting comparability	-7.2	-0.0	-13.6
Items affecting comparability, total	-7.2	-0.0	-13.6
Items affecting comparability, Cargotec, total	-17.2	-8.4	-29.6
Items affecting comparability, continuing operations total, MEUR	Q1/24	Q1/23	2023
Restructuring costs	-1.4	-3.3	-13.4
Other items affecting comparability	-0.1	-4.7	12.7
Items affecting comparability, continuing operations, total	-1.5	-8.0	-0.7

Comparable operating profit, MEUR	Q1/24	Q1/23	2023
Kalmar	59.5	63.2	279.4
Hiab	68.7	61.4	252.1
MacGregor	12.1	0.7	32.6
Corporate administration and support functions	-10.1	-12.8	-50.8
Cargotec, total	130.2	112.4	513.3
Continuing operations, total	71.2	49.7	236.7

Comparable operating profit, %	Q1/24	Q1/23	2023
Kalmar	13.5%	13.0%	13.6%
Hiab	16.6%	14.2%	14.1%
MacGregor	6.0%	0.4%	4.5%
Cargotec, total	12.3 %	10.5 %	11.2 %
Continuing operations, total	11.5 %	8.4 %	9.4 %
Orders received, MEUR	Q1/24	Q1/23	2023
Kalmar	402	471	1,705
Hiab	386	380	1,466
MacGregor	267	208	816
Internal orders received	0	0	0
Cargotec, total	1,054	1,059	3,987
Adjustment items related to the discontinued operations	402	471	1,705
Continuing operations, total	653	588	2,282
Orders received by geographical area, MEUR	Q1/24	Q1/23	2023
EMEA	472	456	1,784
Americas	327	382	1,307
Asia-Pacific	256	220	896
Cargotec, total	1,054	1,059	3,987
Orders received by geographical area, MEUR	Q1/24	Q1/23	2023
EMEA	260	242	981
Americas	197	197	697
Asia-Pacific	195	149	604
Continuing operations, total	653	588	2,282
Orders received by geographical area, %	Q1/24	Q1/23	2023
EMEA	45%	43%	45%
Americas	31%	36%	33%
Asia-Pacific	24%	21%	22%
Cargotec, total	100 %	100 %	100 %

Orders received by geographical area, %	Q1/24	Q1/23	2023
EMEA	40%	41%	43%
Americas	30%	34%	31%
Asia-Pacific	30%	25%	26%
Continuing operations, total	100 %	100 %	100 %

Order book, MEUR	31 Mar 2024	31 Mar 2023	31 Dec 2023
Kalmar	971	1,390	1,024
Hiab	770	1,121	799
MacGregor	1,028	956	988
Internal order book	1	1	1
Cargotec, total	2,770	3,467	2,812
Adjustment items related to the discontinued operations	972	1,389	1,024
Continuing operations, total	1,799	2,078	1,788

Number of employees at the end of period	31 Mar 2024	31 Mar 2023	31 Dec 2023
Kalmar	4,853	5,024	4,907
Hiab	3,824	3,897	3,877
MacGregor	1,813	1,975	1,853
Corporate administration and support functions	776	744	754
Cargotec, total	11,266	11,640	11,391

Average number of employees	Q1/24	Q1/23	2023
Kalmar	4,866	5,025	5,041
Hiab	3,812	3,877	3,932
MacGregor	1,826	1,982	1,938
Corporate administration and support functions	766	746	758
Cargotec, total	11,271	11,630	11,669

5. Revenue from contracts with customers

Hiab, MEUR	Q1/24	Q1/23	2023
Equipment sales	297	320	1,334
Service sales	117	112	452
Total sales	415	432	1,787
Recognised at a point in time	411	429	1,772
Recognised over time	4	4	15

MacGregor, MEUR	Q1/24	Q1/23	2023
Equipment sales	114	69	379
Service sales	89	87	354
Total sales	203	157	733
Recognised at a point in time	153	123	507

Continuing operations, MEUR	Q1/24	Q1/23	2023
Equipment sales	411	389	1,714
Service sales	207	200	806
Software sales	—	—	—
Total sales	617	589	2,519
Recognised at a point in time	564	552	2,278
Recognised over time	54	37	241

6. Share-based payments

The following share-based incentive programmes established by the Board of Directors of Cargotec during the past financial years were in operation during the first quarter of 2024:

Performance share programme 2020–2024, performance period 2022–2024. The performance period includes three measuring periods of one calendar year. For its third measuring period 2024, the potential reward will be based on the eco portfolio share in orders received for the key employees of the business areas Kalmar and Hiab. For Cargotec Corporate key employees, the performance criterion is Cargotec's eco portfolio share in orders received. The programme is directed to approximately 100 key employees, including the members of Cargotec Leadership Team. The rewards to be paid on the basis of the performance period will amount up to an approximate maximum total of 280,000 Cargotec's class B shares.

Performance share programme 2023–2025, performance period 2023–2025. The performance period includes three measuring periods of one calendar year. For its second measuring period 2024, the potential reward will be based on the service gross profit for the key employees of the business areas Kalmar and Hiab. For Cargotec Corporate key employees, the performance criterion is Cargotec's service gross profit. The programme is directed to approximately 100 key employees, including the members of Cargotec Leadership Team. The rewards to be paid on the basis of the performance period will amount up to an approximate maximum total of 200,000 Cargotec's class B shares.

Performance share programme 2024–2026, performance period 2024–2026. The performance period includes three measuring periods of one calendar year. For the key employees of the business areas Kalmar and Hiab, the potential reward of the programme from the first measuring period 2024 will be based on the business areas' earning per share (EPS). For the Cargotec Corporate key employees, the performance criteria is Cargotec's earning per share (EPS). The programme is directed to approximately 100 key employees, including the members of Cargotec Leadership Team.The rewards to be paid on the basis of the performance period will amount up to an approximate maximum total of 222,000 Cargotec's class B shares.

Restricted share programme 2020–2024, earnings period 2022–2024. The rewards to be paid on the basis of the performance period will amount up to an approximate maximum total of 31,000 Cargotec's class B shares.

Restricted share programme 2023–2025. The rewards to be paid on the basis of the programme will amount up to an approximate maximum total of 24,000 Cargotec's class B shares.

Restricted share programme 2024–2026. The rewards to be paid on the basis of the programme will amount up to an approximate maximum total of 20,000 Cargotec's class B shares.

Restricted share unit programme 2023–2025. The reward from the programme is conditional on the achievement of strategic goals set by the Board of Directors. The reward is paid in the beginning of 2025. The shares received as a reward from the programme may not be sold, transferred, pledged or otherwise assigned during a lock-up period which ends six months after the reward payment. The programme is intended for approximately 50 Cargotec group's key employees, including selected Leadership Team members. The rewards to be allocated on the basis of the programme will amount up to an approximate maximum total of 268,750 Cargotec's class B shares.

7. Comparable operating profit, continuing operations

MEUR	Q1/24	Q1/23	2023
Operating profit	69.7	41.7	236.0

Restructuring costs
Employment termination costs	0.6	1.4	5.1
Impairments of inventories	0.7	—	-1.2
Restructuring-related disposals of businesses*	—	—	1.6
Other restructuring costs**	0.1	1.9	7.9
Restructuring costs, total	1.4	3.3	13.4
Other items affecting comparability
Expenses related to business acquisitions or disposals***	0.1	0.3	0.5
Other costs****	—	4.3	-13.2
Other items affecting comparability, total	0.1	4.7	-12.7
Comparable operating profit	71.2	49.7	236.7

* Additional information regarding disposals of businesses is presented in note 15, Acquisitions and disposals.

** Other restructuring costs include contract termination costs (other than employment contracts), costs arising from outsourcing or transferring operations to new locations, maintenance costs of vacant and in the future redundant premises for Cargotec, gains and losses on sale of intangible assets and property, plant and equipment that relate to sold or discontinued operations.

*** Additional information regarding disposals of businesses is presented in note 15, Acquisitions and disposals and note 16, Joint ventures and associated companies.

**** In 2022 Cargotec and its subsidiary MacGregor USA, Inc. made a voluntary self-disclosure to US authorities regarding compliance with certain export regulations related to information management in the context of MacGregor's US Government business in 2022. MacGregor then booked an approximately EUR 18 million provision to cover possible consequences. During the third quarter of 2023, relevant US authorities resolved the matter without monetary penalty, and Cargotec thereby released the provision as an item affecting comparability.

8. Capital expenditure, depreciation, amortisation and impairment, continuing operations

Capital expenditure, MEUR	Q1/24	Q1/23	2023
Owned assets
Intangible assets	0.8	0.3	2.6
Land and buildings	0.4	0.4	2.6
Machinery and equipment	4.0	5.0	20.1
Right-of-use assets
Land and buildings	5.5	3.1	15.3
Machinery and equipment	3.0	3.4	14.8
Total	13.6	12.2	55.3
Depreciation, amortisation and impairment, MEUR	Q1/24	Q1/23	2023
Owned assets
Intangible assets	3.2	3.5	13.5
Land and buildings	0.7	0.7	2.5
Machinery and equipment	2.8	2.8	11.5
Right-of-use assets
Land and buildings	4.6	4.6	18.0
Machinery and equipment	3.1	2.8	12.2
Total	14.3	14.4	57.7

9. Taxes in statement of income, continuing operations

MEUR	Q1/24	Q1/23	2023
Current year tax expense	24.0	13.5	66.3
Change in current year's deferred tax assets and liabilities	-6.9	-2.5	-5.1
Tax expense for previous years	4.1	0.7	-4.1
Total	21.2	11.7	57.1

10. Net working capital

MEUR	31 Mar 2024	31 Mar 2023	31 Dec 2023
Inventories	581.9	1,128.2	1,033.8
Operative derivative assets	17.7	46.2	35.9
Accounts receivable	433.7	748.5	723.8
Contract assets	29.9	73.5	47.3
Other operative non-interest-bearing assets	119.2	167.0	166.6
Working capital assets	1,182.4	2,163.2	2,007.5

Provisions	-73.8	-180.9	-160.5
Operative derivative liabilities	-27.5	-38.3	-33.0
Pension obligations	-49.2	-82.4	-89.0
Accounts payable	-294.5	-640.8	-511.2
Contract liabilities	-253.5	-314.9	-374.5
Other operative non-interest-bearing liabilities	-231.3	-510.1	-510.4
Working capital liabilities	-929.9	-1,767.4	-1,678.6

Net working capital in the balance sheet	252.5	395.9	328.9

Net working capital items included in assets held for
distribution to owners and directly associated liabilities*	44.8	—	—

Cargotec total	297.3	395.9	328.9

*Additional information on assets held for distribution to owners and liabilities directly associated with assets held for distribution to owners is disclosed in note 17. Discontinued operations.

Assets and liabilities that are not allocated to business operations are not included in net working capital. Unallocated assets comprise loans and other interest-bearing receivables, cash and cash equivalents, income tax receivables, deferred tax assets, deferred interests, deferred considerations on disposals, and derivatives designated as hedges of future treasury transactions. Unallocated liabilities comprise loans and other interest-bearing liabilities, income tax payables, deferred tax liabilities, accrued interests, deferred considerations on acquisitions, dividend liabilities, and derivatives designated as hedges of future treasury transactions.

11. Interest-bearing net debt and liquidity

MEUR	31 Mar 2024	31 Mar 2023	31 Dec 2023
Interest-bearing liabilities	374.4	848.5	866.7
Lease liabilities included in interest-bearing liabilities	97.8	167.9	177.6
Loans receivable and other interest-bearing assets	-0.3	-1.9	-3.5
Cash and cash equivalents	-458.2	-453.3	-684.7
Interest-bearing net debt in balance sheet	-84.1	393.4	178.6
Interest-bearing net debt included in assets held for distribution to owners and related liabilities*	140.6	—	—
Interest-bearing net debt, Cargotec total	56.5	393.4	178.6
Equity	1,802.0	1,487.5	1,753.8
Gearing	3.1%	26.4%	10.2%
MEUR	Q1/24	Q1/23	2023
Operating profit, last 12 months	499.4	172.6	483.8
Depreciation, amortisation and impairment, last 12 months	107.7	203.8	114.9
EBITDA, last 12 months, Cargotec total	607.1	376.5	598.7

Interest-bearing net debt / EBITDA, last 12 months	0.1	1.0	0.3

The fair values of interest-bearing assets and liabilities are not significantly different from their carrying amounts.

MEUR	31 Mar 2024	31 Mar 2023	31 Dec 2023
Cash and cash equivalents	458.2	453.3	684.7
Committed long-term undrawn revolving credit facilities	430.0	330.0	430.0
Repayments of interest-bearing liabilities in the following 12 months	-130.2	-245.1	-158.5
Liquidity position of assets held for distribution to owners and related liabilities*	220.1	—	—
Liquidity, Cargotec total	978.0	538.2	956.2

*Additional information on assets held for distribution to owners and liabilities directly associated with assets held for distribution to owners is disclosed in note 17. Discontinued operations.

12. Derivatives

Fair values of derivative financial instruments

	Positive fair value	Negative fair value	Net fair value	Net fair value	Net fair value
MEUR	31 Mar 2024	31 Mar 2024	31 Mar 2024	31 Mar 2023	31 Dec 2023
Non-current
Equity warrants	—	—	—	1.1	—
Total non-current	—	—	—	1.1	—

Current
Currency forwards, cash flow hedge accounting	0.8	0.3	0.4	5.8	11.4
Currency forwards, other	4.3	14.6	-10.4	0.4	16.6
Total current	5.0	15.0	-10.0	6.1	28.1

Derivatives included in assets held for distribution to owners and related
liabilities*	2.3	3.0	-0.7	—	—
Total derivatives	7.3	18.0	-10.7	7.2	28.1

Financial assets and liabilities recognised at fair value through profit and loss comprise mainly currency derivatives. The recurring measurement of these instruments at fair value is based on commonly applied valuation methods and uses observable market-based variables. Therefore, these measurements are categorised in the fair value hierarchy as level 2 fair values.

Nominal values of derivative financial instruments

MEUR	31 Mar 2024	31 Mar 2023	31 Dec 2023
Currency forward contracts	3,473.7	3,859.4	4,020.2
Cash flow hedge accounting	1,756.0	2,525.3	2,313.9
Other	1,717.7	1,334.2	1,706.3
Nominal values of derivatives included in assets held for distribution to owners and related liabilities*	440.5	—	—
Total	3,914.2	3,859.4	4,020.2

The derivatives have been recognised at gross fair values on the balance sheet, as the netting agreements related to derivatives allow unconditional netting only in the occurrence of credit events but not in a normal situation. The group has not given or received collateral related to derivatives from the counterparties.

*Additional information on assets held for distribution to owners and liabilities directly associated with assets held for distribution to owners is disclosed in note 17. Discontinued operations.

13. Commitments, Cargotec total

MEUR	31 Mar 2024	31 Mar 2023	31 Dec 2023
Customer financing	7.8	9.9	8.3
Off-balance sheet leases	8.6	1.8	8.0
Other contingent liabilities	1.2	1.1	1.3
Total	17.6	12.8	17.5

Cargotec Corporation has guaranteed obligations of Cargotec companies arising from ordinary course of business. The total amount of these guarantees on 31 Mar 2024 was EUR 401.7 (31 Mar 2023: 481.4 and 31 Dec 2023: 404.3) million.

Contingent liabilities are related to guarantees given by Cargotec in the ordinary course of business for the delivery of products and services. Guarantees are provided in different ways including direct guarantees, bank guarantees, and performance bonds. Various Group entities are parties to legal actions and claims which arise in the ordinary course of business. While the outcome of some of these matters cannot precisely be foreseen, they are not expected to result in a significant loss to the Group.

Commitments related to leases include commitments related to off-balance sheet leases and onbalance sheet leases not yet commenced, and residual value risk related to equipment sold under customer finance arrangements and accounted for as leases.

14. Related party transactions, Cargotec total

Cargotec's related parties include the parent company Cargotec Corporation and its subsidiaries, associated companies and joint ventures. Related parties include also the members of the Board of Directors, the CEO and other members of the Leadership Team, their close family members and entities controlled directly or indirectly by them. In addition, major shareholders with more than 20 percent ownership of shares or of the total voting rights in the company, are included in related parties.

Transactions with associated companies and joint ventures

MEUR	Q1/24	Q1/23	2023
Sale of products and services
Associated companies	—	—	0.0
Joint ventures	2.1	0.8	4.5
Total	2.1	0.8	4.5

Purchase of products and services
Associated companies	0.0	0.0	0.1
Joint ventures	2.7	3.8	12.7
Total	2.8	3.9	12.8
Finance income
Associated companies	—	0.1	0.1
Total	—	0.1	0.1
Dividends received
Joint ventures	—	—	—
Total	—	—	—

Transactions with associated companies and joint ventures are carried out at market prices.

Balances with associated companies and joint ventures

MEUR	31 Mar 2024	31 Mar 2023	31 Dec 2023
Loans receivable
Associated companies	—	—	—
Total	—	—	—
Accounts receivable
Associated companies	—	0.0	—
Joint ventures	2.0	0.5	2.2
Total	2.0	0.5	2.2
Accounts payable
Associated companies	—	—	—
Joint ventures	3.0	2.7	3.9
Total	3.0	2.7	3.9

During the first quarter of 2024 Cargotec acquired software development consulting services with a value of EUR 0.1 (Q1/23: - and 2023: 0.1) million from an entity, which is controlled by a member of top management. Open accounts payable on 31 Mar 2024 was EUR 0.0 (31 Mar 2023: - and 31 Dec 2023: 0.0) million.

In addition to the related party transaction presented above, Cargotec has agreed to sell a property to its related parties Wipunen varainhallinta oy, Mariatorp Oy, Pivosto Oy who jointly acquire the property on behalf of the company to be established. The transaction will be closed in April 2024. The property's sales price is based on estimates given by two independent real estate brokers. The total value of the transaction including movable property is EUR 11.3 million, and expected to generate approximately EUR 7 million in sales profit that will be included in the result of the discontinued operation in Q2 reporting.

Cargotec did not have other material business transactions with its related parties than those presented above.

15. Acquisitions and disposals

Cargotec made no acquisitions or disposals during the first quarter of 2024.

Acquisitions in 2023

In September, Kalmar acquired the product rights for the product line of electric terminal tractors from Lonestar Specialty Vehicles (LSV) in the United States for a purchase price of EUR 9.5 million. The transaction was accounted for as an asset acquisition in which EUR 9.2 million of the purchase price was allocated to technology-related intangible assets and EUR 0.3 million to prototype machines. In addition, Kalmar entered into a manufacturing contract with LSV for the production of the acquired electric terminal tractor product range. Acquired product line had no material impact in the reported revenues of the year 2023.

Hiab acquired in January the share capitals of Olsbergs Hydraulics Aktiebolag and Olsbergs Electronics AB at a purchase price of EUR 19.1 million of which the EUR 1.9 million share is conditional and paid later. Olsbergs is the technological leader in the design and manufacture of hydraulic valves and remote control systems. Its solutions are used to manoeuvre Hiab's truck mounted loader cranes and forestry cranes. Via acquisition, Hiab is insourcing these components and has better capabilities to further develop them in an integrated manner with other crane components. In determining the fair values, EUR 3.3 million of intangible assets and EUR 4.9 million of goodwill, which is not tax deductible, were identified. As a result of the acquisition, approximately 100 employees transferred to Hiab.

Acquired net assets and goodwill related to Olsbergs acquisition, MEUR MEUR

Intangible assets	3.3
Property, plant and equipment	13.6
Inventories	4.7
Accounts receivable and other non-interest-bearing receivables	3.3
Cash and cash equivalents	0.9
Accounts payable and other non-interest-bearing liabilities	-1.9
Interest-bearing liabilities	-8.2
Deferred tax liabilities	-1.6
Net assets	14.1

Purchase price, payable in cash	17.1
Purchase price, conditional	1.9
Total consideration	19.1
Goodwill	4.9

Purchase price, paid in cash	17.1
Cash and cash equivalents acquired, including overdrafts	-0.9
Cash flow impact	16.2

Disposals in 2023

In December, Hiab sold its Spanish subsidiary Hiab Iberia S.L.U. at a sales price of EUR 6.1 million, of which EUR 2.1 million will be paid during the first quarter of 2024. With the transaction, Hiab transferred its spare parts business in Spain to its partner Mulder Maquinaria S.L.U. The transaction had no material effect on the reported figures.

In November, MacGregor sold its 51% ownership in the UK-based Flintstone Technology Limited to Bridon International Ltd. The transaction had no material effect on the reported figures.

In October, MacGregor sold the Voyage Data Recorder and Maritime Data Engine businesses to Danelec Electronics A/S. The transaction had no material effect on the reported figures.

In May, Hiab sold its Russian subsidiary Hiab RUS LLC to the company's executive management. The company has mainly sold Hiab equipment and related services to the Russian market. The transaction had no material effect on the reported figures.

16. Joint ventures and associated companies

There we no changes in Cargotec's ownerships in joint ventures and associated companies during the first quarter of 2024.

Changes in joint ventures and associated companies in 2023

In April, Hiab completed the closure of the joint venture Sinotruk Hiab (Shandong) Equipment Co., Ltd. Termination of the company had no material profit impact.

The sale of TTS Hua Hai Ships Equipment (Shanghai) Co., Ltd. (THH) to CSSC was completed in March. The transaction had no material profit impact.

17. Discontinued operations

As announced in the stock exchange release published on February 1, 2024, the Board of Directors of Cargotec Corporation ("Cargotec") has approved a demerger plan for the separation of the Kalmar business area into an independent listed company ("Demerger"). The planned implementation date of the demerger is 30 June 2024. The demerger is conditional on the approval of Cargotec's annual general meeting to be held on May 30, 2024. Certain of Cargotec's largest shareholders, including Wipunen varainhallinta oy, Mariatorp Oy, Pivosto Oy and Koneen säätiö, which together own approximately 41 percent of Cargotec's shares and approximately 75 percent of Cargotec's votes, have expressed their support for the proposed Demerger. Additional information about the demerger plan is presented in note 18, Demerger plan.

As a result of the proposed Demerger, Cargotec presents the Kalmar business area as discontinued operations in accordance with IFRS 5 Non-current assets held for sale and discontinued operations starting from the first quarter of 2024. In accordance with the IFRS 5 standard, the net result of discontinued operations is presented in the consolidated income statement separately from the income and expenses of continuing operations (Hiab and MacGregor), and in the balance sheet, assets and liabilities related to Kalmar are presented separately in the lines of assets and liabilities classified as distributed to owners. The cash flow statement and statement of changes in equity are presented normally, including Kalmar.

In the income statement, the comparison periods have been adjusted accordingly. The balance sheet has not been adjusted. The presented discontinued operations include revenue and expenses directly related to the Kalmar business area, as well as other income and expenses related to continuing operations that are not expected to continue after the Demerger or that would have been avoided without the Demerger. The balance sheet items that are presented as held for distribution to the owners include, in addition to the Kalmar segment's balance sheet items, the balance sheet items that will leave Cargotec as a result of the Demerger, and in accordance with IFRS 5, no depreciation is performed on these. Due to the reasons mentioned above, the financial information of Cargotec presented as continuing operations and of Kalmar business area presented as discontinued operations do not reflect the previous or future profitability of either business as separate independent operations before or after the Demerger.

The tables below include additional information about Kalmar as discontinued operations.

Income for the discontinued operations

MEUR	Q1/24	Q1/23	2023
Sales	438.8	485.3	2,049.4
Cost of goods sold	-320.8	-363.1	-1,540.6
Gross profit	117.9	122.2	508.8
Gross profit, %	26.9%	25.2%	24.8%
Selling and marketing expenses	-20.0	-19.9	-85.5
Research and development expenses	-11.4	-12.8	-53.9
Administration expenses	-25.1	-28.0	-111.2
Restructuring costs	-0.1	-0.4	-1.2
Other operating income	7.7	7.6	31.2
Other operating expenses	-18.7	-8.0	-49.4
Share of associated companies' and joint ventures' net result	-0.5	1.7	9.0
Operating profit	49.9	62.3	247.8
Operating profit, %	11.4%	12.8%	12.1%
Finance income	3.0	1.5	5.7
Finance expenses	-5.8	-3.6	-20.1
Profit before taxes of the operations transferred to discontinued operations	47.0	60.3	233.5
Profit before taxes, %	10.7%	12.4%	11.4%
Income taxes	-12.9	-11.4	-47.3
Profit for the period of the operations transferred to discontinued operations	34.2	48.9	186.2
Profit for the period, discontinued operations	34.2	48.9	186.2
Profit for the period, %	7.8 %	10.1 %	9.1 %
Profit for the period attributable to:
Shareholders of the parent company	34.2	48.9	186.2
Non-controlling interest	0.0	0.0	0.0
Total	34.2	48.9	186.2
Earnings per share for profit attributable to the shareholders of the parent company:
Basic earnings per share, EUR	0.53	0.76	2.89

Diluted earnings per share, EUR 0.53 0.76 2.88

Assets and liabilities for the discontinued operations

ASSETS HELD FOR DISTRIBUTION TO OWNERS, MEUR	31 Mar 2024
Non-current assets
Goodwill	258.5
Intangible assets	17.2
Property, plant and equipment	282.7
Investments in associated companies and joint ventures	47.1
Loans receivable and other interest-bearing assets*	0.1
Deferred tax assets	52.4
Other non-interest-bearing assets	1.6
Total non-current assets	659.6

Current assets
Inventories	452.9
Loans receivable and other interest-bearing assets*	2.7
Income tax receivables	8.9
Derivative assets	2.3
Accounts receivable	251.0
Contract assets	16.4
Other non-interest-bearing assets	63.8
Cash and cash equivalents*	243.6
Total current assets	1,041.6

Total assets	1,701.2

LIABILITIES ASSOCIATED WITH ASSETS HELD FOR DISTRIBUTION TO OWNERS, MEUR 31 Mar 2024 Non-current liabilities Interest-bearing liabilities* 363.5 Deferred tax liabilities 11.7 Pension obligations 37.9 Provisions 2.9 Other non-interest-bearing liabilities 78.1 Total non-current liabilities 494.1 Current liabilities Current portion of interest-bearing liabilities* 14.9 Other interest-bearing liabilities* 8.7

Total current liabilities 667.3 Total liabilities 1,161.3

Provisions 77.8 Income tax payables 16.0 Derivative liabilities 3.0 Accounts Payable 197.3 Contract liabilities 126.3 Other non-interest-bearing liabilities 223.4

*Included in interest-bearing net debt

*Included in interest-bearing net debt.

Cash flows from discontinued operations

MEUR	Q1/24	Q1/23	2023
Net cash flow from operating activities	109.4	-15.4	208.8
Net cash flow from investment activities	-8.9	-9.4	-43.6
Net cash flow from financing activities	-6.0	7.6	38.0
Net cash flow total	94.4	-17.2	203.2

Comparable operating profit

MEUR	Q1/24	Q1/23	2023
Operating profit	49.9	62.3	247.8

Restructuring costs
Employment termination costs	—	0.2	1.1
Impairments of inventories	-0.1	—	0.3
Other restructuring costs*	0.2	0.3	-0.1
Restructuring costs, total	0.1	0.4	1.2
Other items affecting comparability
Planning of the partial demerger	15.6	—	27.6
Other items affecting comparability, total	15.6	0.0	27.6

Comparable operating profit	65.6	62.7	276.7

* Other restructuring costs includes contract termination costs (other than employment contracts), costs arising from outsourcing or transferring operations to new locations, maintenance costs of vacant and in the future redundant premises for Cargotec, gains and losses on sale of intangible assets and property, plant and equipment that relate to sold or discontinued operations.

Capital expenditure, depreciation, amortisation and impairment

Capital expenditure, MEUR	Q1/24	Q1/23	2023
Owned assets	11.2	17.7	55.8
Right-of-use assets	5.1	2.6	25.9
Total	16.3	20.3	81.7

Depreciation, amortisation and impairment, MEUR	Q1/24	Q1/23	2023
Owned assets	2.7	10.5	41.1
Right-of-use assets	4.2	3.6	16.1

18. Demerger plan

As announced in a stock exchange release on 1 February 2024, the Board of Directors of Cargotec Corporation ("Cargotec") approved a demerger plan concerning the separation of the Kalmar business area into an independent listed company (the "Demerger"). The planned completion date of the Demerger is 30 June 2024. The Demerger is subject to approval by the Annual General Meeting (the "AGM") of Cargotec to be held on 30 May 2024. Certain major shareholders of Cargotec, including Wipunen varainhallinta oy, Mariatorp Oy, Pivosto Oy and Kone Foundation, holding in the aggregate approximately 41 percent of the shares and approximately 75 percent of the votes in Cargotec, have indicated their support for the proposed Demerger.

The Hiab business area of Cargotec would, in the Demerger, remain with the current company. As announced by Cargotec on 14 November 2022, MacGregor, which is currently one of the three business areas of Cargotec, will not be part of Cargotec's portfolio in the future. Therefore, in parallel, Cargotec's focus remains to continue looking for a solution for MacGregor during 2024.

Based on the Board of Directors' assessment, Demerger would be expected to improve the business performance of Kalmar and Hiab through higher agility, decisiveness, and stronger management focus. In addition, as two standalone businesses, the companies are positioned to achieve faster organic and inorganic growth thanks to a more tailored capital allocation strategy and flexible access to external capital. The Board of Directors believes the transaction would increase the attractiveness of the companies and facilitate their fair valuation. Furthermore, the separation would improve governance, simplify the structures of the entities, and provide greater transparency and accountability.

According to the demerger plan, Cargotec will demerge so that all assets, debts, and liabilities of Cargotec relating to the Kalmar business area or mainly serving the Kalmar business area of Cargotec are transferred to a new company named Kalmar Corporation to be incorporated in the Demerger.

The Demerger would be executed as a partial demerger, as set out in the Finnish Companies Act (624/2006, as amended). The shareholders of Cargotec shall receive as demerger consideration one new share of the corresponding share class (i.e., class A or class B) of Kalmar for each class A and class B share owned in Cargotec. There shall be the corresponding two share classes in Kalmar as in Cargotec, i.e., class A and class B, which will carry the same voting and dividend rights as class A and class B shares in Cargotec, respectively. No action would be required from the shareholders to receive the demerger consideration.

Cargotec's shareholders resolve on the Demerger in Cargotec's 2024 Annual General Meeting on 30 May 2024. The planned completion date of the demerger pursuant to the demerger plan is 30 June 2024. The trading in the class B shares of Kalmar on Nasdaq Helsinki is expected to commence on or about 1 July 2024. Starting from the first quarter of 2024, Cargotec presents the Kalmar business area as discontinued operations in its financial reporting in accordance with the IFRS 5 standard. The Board of Directors of Cargotec may resolve not to complete the Demerger if it considers that the completion would no longer be in the best interests of Cargotec and its shareholders due to a change in circumstances that has occurred or arisen after the demerger plan has been signed.

Additional information about the demerger plan can be found in the press release published by Cargotec on 1 February 2024. Additionally, The demerger and listing prospectus, which is expected to be published by Cargotec in May 2024 before the AGM, will contain more detailed information on the Demerger and Kalmar.

19. Events after the reporting period

There were no material events after the reporting period.

Key exchange rates for euro

31 Mar 2024	31 Mar 2023	31 Dec 2023
11.525	11.281	11.096
1.081	1.088	1.105

Q1/24	Q1/23	2023
11.276	11.207	11.456
1.088	1.075	1.082

Cargotec's key figures

		Q1/24	Q1/23	2023
Equity / share	EUR	27.99	22.98	27.25
Equity to asset ratio	%	45.8%	37.7%	43.8%
Interest-bearing net debt	MEUR	56.5	393.4	178.6
Interest-bearing net debt / EBITDA, last 12 months		0.1	1.0	0.3
Gearing	%	3.1%	26.4%	10.2%
Return on equity (ROE), last 12 months	%	21.7%	5.0%	21.2%
Return on capital employed (ROCE), last 12 months	%	21.1%	7.5%	19.9%

Additional information regarding interest-bearing net debt and gearing is disclosed in note 11, Interest-bearing net debt and liquidity.

Calculation of key figures

IFRS key figures

Basic earnings per share (EUR)	=	Profit attributable to the shareholders of the parent company
		Average number of outstanding shares during the period


Diluted earnings per share (EUR)	=	Profit attributable to the shareholders of the parent company
		Average number of diluted outstanding shares during the period

Alternative performance measures

According to the ESMA Guidelines on Alternative Performance Measures, an Alternative Performance Measure (APM) is understood as a financial measure of historical or future financial performance, financial position, or cash flows, other than a financial measure defined or specified in the applicable financial reporting framework. In addition to IFRS key figures, Cargotec uses the following alternative performance measures:

Key figure		Definition	Reason for use	Reconciliation
Operating profit (MEUR and % of sales)	=	Sales - cost of goods sold - selling and marketing ex penses - research and development expenses - ad ministration expenses - restructuring costs + other operating income - other operating expenses + share of associated companies' and joint ventures' result	Operating profit is used to measure business profitability. It describes the profitability of the business before taking into account financial items and taxes.	Statement of income
Comparable operating profit (MEUR and % of sales)	=	Operating profit excluding items significantly affecting comparability	Comparable operating profit is used to monitor and forecast profit development and set related targets. It is calculated by excluding items significantly affecting comparability from operating profit, which makes it easier to compare the profitability of the business at different time periods.	Note 7. Comparable operating profit

Items significantly affecting comparability (MEUR)	=	Items significantly affecting comparability include, in addition to restructuring costs, mainly capital gains and losses, gains and losses related to acquisitions and disposals, acquisition and integration costs including during years 2020-2022 costs related to the merger plan with Konecranes Plc, impairments and reversals of impairments of assets, insurance benefits, and expenses related to legal proceedings.	Factor used to calculate Comparable operating profit. Note 7. Comparable operating profit
Cash flow from operations before financing items and taxes	=	Profit for the period + depreciation, amortisation and impairment + finance income and expenses + taxes + other adjustments + changes in net working capital	Represents cash flow from operations after income from sales less operating expenses. Measures the company's ability to meet its financial commitments, including interest payments, taxes, investments, and equity and debt payments. Used to monitor and forecast business performance.	Statement of cash flows
Interest- bearing net debt/EBITDA, last 12 months	=	Interest-bearing net debt	Used to measure corporate capital structure and financial capacity.	Note 11, Interest-bearing net debt and liquidity
Interest- bearing net debt (MEUR)	=	EBITDA, last 12 months Interest-bearing liabilities (non-current interest-bearing liabilities + current portion of interest-bearing liabilities + current other interest-bearing liabilities) - interest bearing receivables (non-current and current loans receivable and other interest-bearing assets) - cash and cash equivalents +/- foreign currency hedge of corporate bonds	Interest-bearing net debt represents Cargotec's indebtedness. Used to monitor capital structure and as a factor to calculate Interest-bearing net debt / EBITDA and Gearing.	Note 11, Interest-bearing net debt and liquidity
EBITDA (MEUR), last 12 months	=	Operating profit + depreciation, amortisation and impairment, last 12 months	Factor used to calculate Interest-bearing net debt / EBITDA.	Note 11, Interest-bearing net debt and liquidity
Net working capital (MEUR)	=	Inventories + operative derivative assets + accounts receivable + contract assets + other operative non-interest-bearing assets - provisions - operative derivative liabilities - pension obligations - accounts payable - contract liabilities - other operative non-interest-bearing liabilities	Net working capital is used to follow the amount of capital needed for the business to operate. It does not include financing items, taxes nor non-current assets. Used also as a factor to calculate Operative capital employed.	Note 10, Net working capital
Investments	=	Additions to intangible assets and property, plant and equipment including owned assets and right- of-use assets, excluding assets acquired through business combinations	Investments refer to money used to acquire long-term assets. Used as a factor in cash flow calculation.	Note 8, Capital expenditure, depreciation and amortisation

Return on equity (ROE) (%), last 12 months	= 100 x	Profit for the period, last 12 months	Represents the rate of return that shareholders receive on their investments.	Profit for the period: Statement of income; Total equity: Balance sheet
		Total equity (average for the last 12 months)
Return on capital employed (ROCE) (%), last 12 months	= 100 x	Profit before taxes + finance expenses, last 12 months Represents relative profitability or the rate of return Total assets - non-interest-bearing debt (average for the last 12 months)	that has been received on capital employed requiring interest or other return.	Profit before taxes and finance expenses: Statement of income; Total assets and non-interest-bearing debt: Balance sheet Balance sheet
Non-interest-bearing debt	=	Total assets - total equity - non-current interest bearing liabilities - current portion of interest-bearing liabilities - current other interest-bearing liabilities	Used as a factor to calculate Return on capital employed (ROCE).
Equity to asset ratio	= 100 x	Total equity Total assets - contract liabilities	Used to measure solvency and describe the share of the company's assets financed by equity.	Balance sheet
Gearing (%)	= 100 x	Interest-bearing net debt Total equity	Represents the company's indebtedness by measuring the amount of interest-bearing debt in proportion to equity capital. Some of Cargotec's loan agreements include a covenant restricting the corporate capital structure, measured by gearing.	Note 11, Interest-bearing net debt and liquidity

In the calculation of the balance sheet related key figures, the assets held for distribution to owners and associated liabilities are included in the applicable account groups, even though in the balance sheet they are presented on one row.

Quarterly key figures

Cargotec, total*		Q1/24	Q4/23	Q3/23	Q2/23	Q1/23
Orders received	MEUR	1,054	1,015	914	999	1,059
Service orders received	MEUR	361	331	312	326	362
Order book	MEUR	2,770	2,812	3,065	3,242	3,467
Sales	MEUR	1,056	1,193	1,102	1,200	1,074
Service sales	MEUR	343	355	334	344	346
Service sales, % of sales	%	32 %	30 %	30 %	29 %	32 %
Eco portfolio sales	MEUR	350	404	367	397	346
Eco portfolio sales, % of sales	%	33 %	34 %	33 %	33 %	32 %
Operating profit	MEUR	119.6	89.0	140.3	150.5	104.0
Operating profit	%	11.3 %	7.5 %	12.7 %	12.5 %	9.7 %
Comparable operating profit	MEUR	136.8	111.2	131.5	158.3	112.4
Comparable operating profit	%	13.0 %	9.3 %	11.9 %	13.2 %	10.5 %
Basic earnings per share	EUR	1.26	0.92	1.66	1.67	1.13

Continuing operations		Q1/24	Q4/23	Q3/23	Q2/23	Q1/23
Orders received	MEUR	653	610	522	562	588
Service orders received	MEUR	205	194	183	190	219
Order book	MEUR	1,799	1,788	1,894	1,961	2,078
Sales	MEUR	617	684	598	648	589
Service sales	MEUR	207	208	197	201	200
Service sales, % of sales	%	33 %	30 %	33 %	31 %	34 %
Eco portfolio sales	MEUR	174	202	192	217	186
Eco portfolio sales, % of sales	%	28 %	30 %	32 %	33 %	32 %
Operating profit	MEUR	69.7	39.0	76.7	78.6	41.7
Operating profit	%	11.3 %	5.7 %	12.8 %	12.1 %	7.1 %
Comparable operating profit	MEUR	71.2	45.5	60.9	80.6	49.7
Comparable operating profit	%	11.5 %	6.7 %	10.2 %	12.4 %	8.4 %
Basic earnings per share	EUR	0.73	0.31	0.97	0.85	0.37

Discontinued operations*		Q1/24	Q4/23	Q3/23	Q2/23	Q1/23
Orders received	MEUR	402	405	392	437	471
Service orders received	MEUR	156	137	129	136	143
Order book	MEUR	972	1,024	1,172	1,281	1,389
Sales	MEUR	439	509	503	552	485
Service sales	MEUR	137	147	137	143	146
Service sales, % of sales	%	31 %	29 %	27 %	26 %	30 %
Eco portfolio sales	MEUR	176	202	175	181	160
Eco portfolio sales, % of sales	%	40 %	40 %	35 %	33 %	33 %
Operating profit	MEUR	49.9	50.0	63.6	71.9	62.3
Operating profit	%	11.4 %	9.8 %	12.6 %	13.0 %	12.8 %
Comparable operating profit	MEUR	65.6	65.7	70.6	77.7	62.7
Comparable operating profit	%	14.9 %	12.9 %	14.0 %	14.1 %	12.9 %
Basic earnings per share	EUR	0.53	0.62	0.70	0.82	0.76

Kalmar		Q1/24	Q4/23	Q3/23	Q2/23	Q1/23
Orders received	MEUR	402	405	392	437	471
Order book	MEUR	971	1,024	1,172	1,281	1,390
Sales	MEUR	439	509	503	552	485
Service sales	MEUR	137	147	137	143	147
Comparable operating profit	MEUR	59.5	66.6	71.2	78.4	63.2
Comparable operating profit	%	13.5 %	13.1 %	14.1 %	14.2 %	13.0 %

Hiab		Q1/24	Q4/23	Q3/23	Q2/23	Q1/23
Orders received	MEUR	386	401	311	375	380
Order book	MEUR	770	799	900	1,007	1,121
Sales	MEUR	415	450	420	485	432
Service sales	MEUR	117	114	113	113	112
Comparable operating profit	MEUR	68.7	47.8	61.5	81.4	61.4
Comparable operating profit	%	16.6 %	10.6 %	14.7 %	16.8 %	14.2 %

MacGregor		Q1/24	Q4/23	Q3/23	Q2/23	Q1/23
Orders received	MEUR	267	209	211	187	208
Order book	MEUR	1,028	988	993	953	956
Sales	MEUR	203	234	179	164	157
Service sales	MEUR	89	94	85	88	87
Comparable operating profit	MEUR	12.1	13.1	8.5	10.3	0.7
Comparable operating profit	%	6.0 %	5.6 %	4.8 %	6.3 %	0.4 %

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3214_10-q_2024-04-30_150efb49-d4ca-453f-a693-62b9e750dd71.pdf

CARGOTEC'S INTERIM REPORT

JANUARY–MARCH 2024

Cargotec's interim report January–March 2024: Comparable operating profit margin improved in all business areas

Continuing operations' January–March 2024 in brief: Comparable operating profit increased

Outlook for 2024 unchanged

Kalmar is presented as discontinued operations due to the proposed demerger

Continuing operations' key figures

Discontinued operations' key figures*

Cargotec's key figures*

Cargotec's President and CEO Casimir Lindholm: Fifth consecutive quarter with good results, demerger progressing according to the plan

Reporting segments' key figures

Orders received

Order book

Sales

Operating profit

Comparable operating profit

Telephone conference for analysts, investors and media

For further information, please contact:

Cargotec's interim report January–March 2024

Operating environment

Financial performance, continuing operations

Orders received and order book

Orders received, MEUR

Sales

Sales, MEUR

Service and eco portfolio sales, MEUR

Sales by business area Q1/2024, % Sales by geographical area Q1/2024, %

Financial result, continuing operations

Operating profit and comparable operating profit

Operating profit and items affecting comparability, MEUR

Net finance expenses and net income, continuing operations

Balance sheet, cash flow and financing

Return on capital employed, % (ROCE), last 12 months

Impacts of currencies and structural changes

Capital expenditure, continuing operations

Acquisitions and divestments in 2024

Operational restructurings

Personnel

Planned separation of Kalmar and Hiab

Sustainability

Leadership Team

Reporting segments

Kalmar

Sales, orders received, order book, MEUR

Comparable operating profit, MEUR Comparable operating profit, %

Research and development

Hiab

Sales, orders received, order book, MEUR

Research and development

MacGregor

Sales, orders received, order book, MEUR

Research and development

Shares and trading

Share capital, own shares and share issue

Share-based incentive programmes

Market capitalisation and trading

Short-term risks and uncertainties

Board of Directors' proposal on the distribution of 2023 profit

Events after the reporting period

Outlook for 2024 unchanged

Annual General Meeting 2024

Capital Markets Day 2024

Financial calendar 2024

Consolidated statement of income

Consolidated statement of comprehensive income

Consolidated balance sheet

Consolidated statement of changes in equity

Consolidated statement of cash flows

Notes to the interim report

1. General information

2. Accounting principles

3. Prevailing economic uncertainty

MacGregor goodwill impairment testing

MacGregor goodwill sensitivity analysis

Financial risks related to climate change

4. Segment information

Operating profit and EBITDA, Cargotec, total,