Cargotec’s Pro Forma Review: January–March, 2005, according to the Business and Corporate Structure Prevailing after KONE’s demerger

Cargotec’s Orders Received Continued Strong

• Cargotec’s orders received amounted to MEUR 644.9 (1-3/2004: MEUR 536.1), which resulted in the order book growing to MEUR 1,309.6 (31.3.2004: MEUR 860.6).
• Net sales grew by 35 percent to MEUR 543.8 (1-3/2004: MEUR 404.0).
• Operating income improved clearly to MEUR 35.2 (MEUR 19.8) or 6.5 (4.9) percent of net sales.
• Cash flow from operations (before financial items and taxes) was MEUR 16.1 (MEUR 34.8).
• Net income amounted to MEUR 20.4 (MEUR 12.4).
• Earnings per share were EUR 0.32 (EUR 0.19).
• Gearing at the end of March totaled 46.1 percent (31.3.04: 58.1 percent).

KONE Corporation will on 31 May, 2005 be demerged into two corporations, Cargotec Corporation, comprising KONE Corporation’s cargo-handling business, and KONE Corporation (new KONE), comprising KONE Corporation’s elevator, escalator and automatic door service operations. The two corporations will be listed on the main list of the Helsinki Stock Exchange on 1 June, 2005 in accordance with the disclosed demerger plan. In order to facilitate the evaluation of the financial performance and status of Cargotec, this pro forma review presents Cargotec’s January-March 2005 financial results according to the business and corporate structure that will prevail after the demerger. It is based on KONE Corporation’s Financial Statements and the operations of recently acquired MacGREGOR Group.
The most significant deviations between KONE Corporation’s Financial Statements and Cargotec’s pro forma figures are due to the allocation of corporate costs to Cargotec, as well as the inclusion of the operations of MacGREGOR Group. The operations of MacGREGOR Group are included in the pro forma figures with the exception of the elevator operations, which will be transferred to New KONE.

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