Kalmar's Strategic Moves: A Path to Long-Term Growth and Value Creation

Kalmar Corporation's Board of Directors has recently announced the establishment of new share-based long-term incentive plans for the company's management and selected key employees. These plans, a Performance Share Plan (PSP) and a Restricted Share Plan (RSP), aim to align the interests of Kalmar's management and key employees with those of the company's shareholders, promoting shareholder value creation in the long term, and committing management and key employees to achieving Kalmar's strategic targets.

The PSP, which commences effective as of the beginning of 2025, has a three-year performance period, followed by the payment of potential share rewards in class B shares of Kalmar. The first plan, PSP 2025 - 2027, will have approximately 60 participants, including the President and CEO and Kalmar's Leadership Team members. If all the performance targets for the PSP 2025 - 2027 are fully achieved, the aggregate maximum number of shares to be paid based on this plan is approximately 265,000 shares.

The RSP, on the other hand, consists of annually commencing individual restricted share plans, with each plan comprising a restriction period with an overall length of three years. The first plan, RSP 2025 - 2027, commences effective as of the beginning of 2025. The aggregate maximum number of shares payable as a reward based on RSP 2025 - 2027 is approximately 26,500 shares.



These incentive plans are part of Kalmar's broader strategy to invest in sustainable innovations, grow services, and expand its aftermarket footprint. By focusing on these strategic areas, Kalmar can create added customer value, attract and retain top talent, and maintain its position as a market leader in heavy material handling equipment.

Investing in sustainable innovations, such as decarbonised and electric equipment, digital solutions, and automation, helps Kalmar to:

* Attract environmentally conscious customers who prioritize sustainability.
* Differentiate itself from competitors by offering eco-friendly solutions.
* Stay ahead of regulatory trends and customer demands for greener operations.
* Example: Kalmar's eco portfolio sales represented 41% of consolidated sales in the fourth quarter of 2024, indicating strong demand for sustainable solutions.

Growing services and expanding the aftermarket footprint allows Kalmar to:

* Enhance customer loyalty and retention by providing comprehensive support and maintenance services.
* Generate recurring revenue streams, which can help stabilize earnings and improve financial performance.
* Differentiate itself from competitors by offering a broader range of value-added services.
* Example: Kalmar's workforce comprises around 5,200 employees, of which 1,400 are service engineers, demonstrating its commitment to growing its service capabilities.

Expanding the aftermarket footprint enables Kalmar to:

* Maximize the value of its installed base of 68,000 machines globally.
* Generate additional revenue through parts, maintenance, and upgrade services.
* Build stronger relationships with customers, leading to increased customer satisfaction and loyalty.
* Example: Kalmar's order book amounted to EUR 955 million at the end of 2024, indicating a strong pipeline of aftermarket opportunities.

By focusing on these strategic areas, Kalmar can create added customer value, attract and retain top talent, and maintain its position as a market leader in heavy material handling equipment. These initiatives also contribute to Kalmar's strong financial profile and help it address the key opportunities and megatrends in the industry, such as safety, productivity, decarbonisation, and intelligent operations.

In conclusion, Kalmar's strategic moves, including the establishment of new share-based long-term incentive plans and its focus on sustainable innovations, growing services, and expanding its aftermarket footprint, position the company well for long-term growth and value creation. By aligning the interests of management and key employees with those of shareholders, Kalmar can promote shareholder value creation and commit its team to achieving the company's strategic targets.