Cargotec - Company Announcement

Cargotec's Board of Directors has approved a long-term incentive programme for management

CARGOTEC CORPORATION, STOCK EXCHANGE RELEASE, 4 FEBRUARY 2014, AT 9.00 AM (EET)

Cargotec's Board of Directors has approved a long-term incentive programme for
management

The Board of Directors has approved a new long-term incentive programme for key
personnel of Cargotec. The purpose of the programme is to increase Cargotec's
profitability and shareholder value in the long term by attracting and retaining
the required talent. The number of participants will be approximately 75
persons, including Cargotec's President and CEO and members of the Executive
Board.

The programme consists of two phases. The first phase includes specific
financial performance targets for the year 2014 (business area or corporate
operating profit and working capital). The second phase consists of an
additional earnings multiplier, which is based on Cargotec's market value
(including both class A and class B shares) at the end of a three year
performance period in 2016. The second phase serves to align the interests to
that of the shareholders as well as retention (eligible participants need to be
employed by Cargotec in the beginning of 2017).

The potential reward will be delivered in Cargotec class B shares in the
beginning of 2017. Gross reward, before deduction for the applicable taxes and
employment related expenses, is in range of 25-120 percent of annual base salary
for on target performance. If the targets were fully met for the maximum number
of participants, the cost of the programme for the three year period would be
approximately EUR 12 million. If the financial performance threshold levels were
not met, there would not be any incentive payment.

As a part of total compensation, additional restricted share grants can be
allocated for selected few key employees during 2014-2016. Gross reward, before
deduction for the applicable taxes and employment related expenses, is in range
of 50-60% of annual base salary. If the financial performance threshold levels
were met for the maximum number of participants, the cost of the programme for
the three year period would be approximately EUR 2.9 million. If the financial
performance threshold levels were not met, there would not be any incentive
payment.

No new shares will be issued in connection with the above programme and
therefore the programme will have no diluting effect.

For further information please contact:
Eeva Sipilä, Executive Vice President, CFO, tel. +358 20 777 4104
Paula Liimatta, Director, Investor Relations, tel. +358 20 777 4084


Cargotec shapes the cargo handling industry for the benefit of its customers and
shareholders. Cargotec's business areas MacGregor, Kalmar and Hiab are
recognised leaders in cargo and load handling solutions around the world. Their
global network is positioned close to customers and offers extensive services
that ensure a continuous, reliable and sustainable performance according to
customers' needs. Cargotec's sales totalled approximately EUR 3.2 billion in
2013 and it employs approximately 11,000 people. Cargotec's class B shares are
quoted on NASDAQ OMX Helsinki under symbol CGCBV. www.cargotec.com

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