Konecranes Oyj - Company Announcement

KONECRANES TO EXPAND COST SAVINGS ACTIONS AND STREAMLINE ITS INTERNAL REGIONAL STRUCTURE

KONECRANES PLC  STOCK EXCHANGE RELEASE  February 3, 2016 at 9.05

In the market outlook issued in the financial statements bulletin 2015,
Konecranes stated that customers are cautious about investing as economic
growth has slowed down across the globe. Companies operating in emerging and
commodity markets are particularly under pressure to save costs. However, we
still believe in our own growth opportunities in specific product segments and
geographic areas. 

As a consequence of this, Konecranes intends to initiate actions aiming at
annual cost savings of EUR 25 million by the end of 2017. Approximately a half
of the cost savings are expected to be realized by the end of 2016. This has
been taken into consideration in the 2016 financial guidance. 

To reduce fixed costs and improve efficiency in operations, Konecranes is
planning to pursue the following measures to reach the targeted cost savings.
Some of the actions mentioned below are already in progress. 

- evaluation of business model in certain countries we operate
- closures and rightsizing of manufacturing units and optimization of supply
chain 
- streamlining product portfolio and related resources
- consolidation of regional functions

To reach the targeted cost savings of EUR 25 million, Konecranes expects to
incur restructuring costs of approximately EUR 20 million by the end of 2017. 

Konecranes will reduce the number of its internal regions from five to three to
create opportunities for further efficiency improvement. The planned changes
will not have an impact on the external reporting structure. 

“While we are proceeding with the planning of the merger with Terex Corporation
(“Terex”), we are actively seeking opportunities to improve our operational
efficiency in a marketplace where several of our end-markets are facing
macro-related headwinds. The intended actions are necessary and independent of
the announced merger with Terex. The execution of these actions will strengthen
the foundation of our business in the years ahead,” comments Konecranes
President and CEO Panu Routila. 


KONECRANES PLC

Miikka Kinnunen
Director, Investor Relations


FURTHER INFORMATION
Miikka Kinnunen, Director, Investor Relations, Konecranes Plc,
tel. +358 20 427 2050


Konecranes is a world-leading group of Lifting Businesses™, serving a broad
range of customers, including manufacturing and process industries, shipyards,
ports and terminals. Konecranes provides productivity-enhancing lifting
solutions as well as services for lifting equipment and machine tools of all
makes. In 2015, Group sales totaled EUR 2,126 million. The Group has 11,900
employees at 600 locations in 48 countries. Konecranes is listed on Nasdaq
Helsinki (symbol: KCR1V). 


DISTRIBUTION
Nasdaq Helsinki
Major media
www.konecranes.com


Forward Looking Statements

This document contains forward-looking statements regarding future events,
including statements regarding Terex or Konecranes, the transaction described
in this document and the expected benefits of such transaction and future
financial performance of the combined businesses of Terex and Konecranes based
on each of their current expectations. These statements involve risks and
uncertainties that may cause results to differ materially from those set forth
in the statements. When included in this document, the words “may”, “expects”,
“intends”, “anticipates”, “plans”, “projects”, “estimates” and the negatives
thereof and analogous or similar expressions are intended to identify
forward-looking statements. However, the absence of these words does not mean
that the statement is not forward-looking. Terex and Konecranes have based
these forward-looking statements on current expectations and projections about
future events. These statements are not guarantees of future performance. 

Because forward-looking statements involve risks and uncertainties, actual
results could differ materially. Such risks and uncertainties, many of which
are beyond the control of Konecranes, include, among others: the ability of
Terex and Konecranes to obtain shareholder approval for the transaction, the
ability of Terex and Konecranes to obtain regulatory approval for the
transaction, the possibility that the length of time required to complete the
transaction will be longer than anticipated, the achievement of the expected
benefits of the transaction, risks associated with the integration of the
businesses of Terex and Konecranes, the possibility that the businesses of
Terex and Konecranes may suffer as a result of uncertainty surrounding the
proposed transaction, and other factors, risks and uncertainties that are more
specifically set forth in Terex’ public filings with the SEC and Konecranes’
annual and interim reports. Konecranes disclaims any obligation to update the
forward-looking statements contained herein. 

IMPORTANT ADDITIONAL INFORMATION

This document relates to the proposed merger of Terex and Konecranes through
which all of Terex’ common stock will be exchanged for Konecranes ordinary
shares (or American depositary shares, if required). This document is for
informational purposes only and does not constitute an offer to purchase or
exchange, or a solicitation of an offer to sell or exchange, all of common
stock of Terex, nor is it a substitute for  the Preliminary Prospectus included
in the Registration Statement on Form F-4 (the “Registration Statement”) to be
filed by Konecranes with the SEC, the Prospectus/Proxy to be filed by Terex
with the SEC, the listing prospectus of Konecranes to be filed by Konecranes
with the Finnish Financial Supervisory Authority (and as amended and
supplemented from time to time, the “Merger Documents”). No offering of
securities shall be made in the United States except by means of a prospectus
meeting the requirements of Section 10 of the U.S. Securities Act of 1933. 

INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE MERGER DOCUMENTS AND ALL
OTHER RELEVANT DOCUMENTS THAT KONECRANES OR TEREX HAS FILED OR MAY FILE WITH
THE SEC, NASDAQ HELSINKI, OR FINNISH FINANCIAL SUPERVISORY AUTHORITY WHEN THEY
BECOME AVAILABLE BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION
THAT INVESTORS AND SECURITY HOLDERS SHOULD CONSIDER BEFORE MAKING ANY DECISION
REGARDING THE PROPOSED MERGER. 

The information contained in this document must not be published, released or
distributed, directly or indirectly, in any jurisdiction where the publication,
release or distribution of such information is restricted by laws or
regulations. Therefore, persons in such jurisdictions into which these
materials are published, released or distributed must inform themselves about
and comply with such laws or regulations. Konecranes and Terex do not accept
any responsibility for any violation by any person of any such restrictions.
The Merger Documents and other documents referred to above, if filed or
furnished by Konecranes or Terex with the SEC, as applicable, will be available
free of charge at the SEC’s website (www.sec.gov) or by writing to Anna-Mari
Kautto, Investor Relations Assistant, Konecranes Plc, P.O. Box 661, FI-05801
Hyvinkää, Finland or Elizabeth Gaal, Investor Relations Associate, Terex, 200
Nyala Farm Road, Westport, CT 06880, USA. 

Konecranes and Terex and their respective directors, executive officers and
employees and other persons may be deemed to be participants in the
solicitation of proxies in respect of the transaction. Information regarding
Konecranes' directors and executive officers is available in Konecranes’ annual
report for fiscal year 2014 at www.konecranes.com. Information about Terex'
directors and executive officers and their ownership of Terex ordinary shares
is available in its Schedule 14A filed with the SEC on April 1, 2015. Other
information regarding the interests of such individuals as well as information
regarding Konecranes’ and Terex' directors and officers will be available in
the proxy statement/prospectus when it becomes available. These documents can
be obtained free of charge from the sources indicated above.