KONEORANES' Lifting Businesses™ Interim Report January-March 2018 Strong improvement in group adjusted EBITA, solid growth in group sales and service orders with comparable currencies

Interim Report January-March 2018 Strong improvement in group adjusted EBITA, solid growth in group sales and service orders with comparable currencies Konecranes applied the full retrospective approach in IFRS 15 transition, and the numbers for the periods in 2017 have been restated. Please refer to note 4 for more details on the implementation of IFRS 15 and other significant accounting policies. Figures in brackets, unless otherwise stated, refer to the same period a year earlier. FIRST QUARTER HIGHLIGHTS • Order intake EUR 683.1 million (734.5), -7.0 percent (-2.6 percent on a comparable...

Interim Report January-March 2018 1) Excluding adjustments, see also note 11 in the summary financial statements 2) Excluding adjustments and purchase price allocation amortization, see also note 11 in the summary financial statements 3) ROCE excluding adjustments, see also note 11 in the summary financial statements 4) See also note 4 in the summary financial statements for additional info

Interim Report January–March 2018 President and CEO Panu Routila: “The first quarter was a good start to the year in several ways. To begin with, the integration of MHPS progresses well and according to our plan, which gives us additional confidence that we will reach our planned EBIT-level run rate synergies of EUR 140 million at the end of 2019. As of end-Q1, approximately EUR 63 million of the targeted run rate savings has been implemented. Our progress is clearly visible in our Group adjusted EBITA-margin, which improved 1.0 percentage point to 5.5 percent year-on-year. USD has depreciated...

Interim Report January–March 2018 Konecranes Plc Interim report January–March 2018 Konecranes applied the full retrospective approach in IFRS 15 transition, and the numbers for the periods in 2017 have been restated. Please refer to note 4 for more details on the implementation of IFRS 15 and other significant accounting policies. Note: Unless otherwise stated, the figures in brackets in the sections below refer to the same period in the previous year. MARKET REVIEW Activity in the world’s manufacturing sector, according to the aggregated JPMorgan Global Manufacturing Purchasing Managers’ Index...

Interim Report January-March 2018 Change % at Change comparable percent currency rates Orders received, MEUR Net sales, MEUR FINANCIAL RESULT In January-March, the Group adjusted EBITA increased by EUR 6.1 million to EUR 37.2 million (31.1). The adjusted EBITA margin improved to 5.5 percent (4.5). The adjusted EBITA margin in Service improved to 12.7 percent (11.7), in Industrial Equipment to 2.7 percent (-0.2) and in Port Solutions to 3.1 (1.4). The improvement in the Group adjusted EBITA was mainly attributable to the synergy cost saving measures implemented in 2017, which were enough to offset low...

Interim Report January–March 2018 CASH FLOW AND FINANCING Net cash from operating activities in January–March was EUR 3.4 million (93.6). Cash flow before financing activities was EUR -1.1 million (-411.6). This included divestments of EUR 1.1 million (222.5) and capital expenditures of EUR -5.7 million (-5.7). At the end of March 2018, interest-bearing net debt was EUR 524.3 million (535.6). The equity to assets ratio was 38.0 percent (35.5) and the gearing 43.8 percent (42.9). At the end of the first quarter, cash and cash equivalents amounted to EUR 198.3 million (423.6). None of the Group’s...

Interim Report January-March 2018 Change % at Change comparable 1-3/2018 1-3/2017 percent currency rates 1-12/2017 1 Excluding adjustments and purchase price allocation amortization In Service, January-March orders received totaled EUR 238.5 million (246.3), corresponding to a decrease of 3.2 percent. On a comparable currency basis, orders received increased 4.5 percent, largely due to an increase in modernizations. The order book decreased 2.6 percent to EUR 212.0 million (217.6). On a comparable currency basis, the order book increased 6.1 percent. Sales decreased 6.7 percent to EUR 266.4...

Interim Report January-March 2018 Orders received, MEUR Order book, MEUR Net sales, MEUR Change % at Change comparable percent currency rates Adjusted EBITA, MEUR 1) Adjusted EBITA, % 1) Purchase price allocation amortization, MEUR Adjustments,MEUR Operating profit (EBIT), MEUR Operating profit (EBIT), % 1 Excluding adjustments and purchase price allocation amortization In Industrial Equipment, January-March orders received totaled EUR 271.6 million (270.7), corresponding to an increase of 0.3 percent. On a comparable currency basis, orders received increased 5.1 percent. Internal orders increased...

Interim Report January-March 2018 Change % at Change comparable 1-3/2018 1-3/2017 percent currency rates 1-12/2017 1 Excluding adjustments and purchase price allocation amortization In Port Solutions, January-March orders received totaled EUR 226.2 million (247.1), corresponding to a decrease of 8.5 percent. On a comparable currency basis, orders received decreased by 6.9 percent. Orders fell in the EMEA and the Americas, primarily due to the timing of projects, impacting the orders for heavier container handling equipment. Orders increased in the APAC. Orders for Ports Solutions service increased...

Interim Report January–March 2018 Group overheads Adjusted unallocated Group overhead costs and eliminations were EUR -9.4 million (-4.5), representing -1.4 percent of sales (-0.7). The increase was primarily due to the alignment of accounting practices following the MHPS acquisition, along with a change in allocations from the beginning of 2018, where approximately EUR 4 million of cost on an annual basis is allocated to unallocated Group overheads instead of Business Areas. Unallocated Group overhead costs and eliminations in the reporting period were EUR -11.1 million (204.2), representing...