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FOR A GREAT DAY AT WORK
CRAMO PLC
Investor material
EQUITY STORY
Why invest in Cramo
2
Cramo in brief
A leading equipment rental service company
Russia
Denmark
Germany
Poland
Czech
Republic
Austria Hungary
S...
3
Key industry and company specific drivers
Cramo is well positioned to capitalise on attractive rental industry fundament...
4
Leading indicators
Cramo has a favorable geographical exposure towards stronger European economies.
Construction output*...
5
Construction volume trends for selected countries
Signs of gradual recovery in 2014…
Source: Euroconstruct, November 201...
6
Confidence among European rental companies
…which consequently improves confidence among rental operators. Business cond...
7
0,0 %
0,5 %
1,0 %
1,5 %
2,0 %
2,5 %
3,0 %
3,5 %
4,0 %
Long-term rental growth drivers
Rental is a growing industrial ser...
8
Rental vs. construction growth
…which means growth has clearly surpassed construction market growth over the cycle.
Chan...
9
828
657
647
460
420
397
336
332
290
288
0 200 400 600 800 1000
Loxam
Cramo
Ramirent
Kilotou
Sarens
Speedy Hire
Algeco Sc...
10
0 %
5 %
10 %
15 %
20 %
25 %
0
100
200
300
400
500
600
700
800
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
EB...
11
2011 2012 2013
Sales 10 % 10 % 8 %
EBITA 2 % 8 % 9 %
2011 2012 2013
Sales 309 322 317
EBITA-% 19 % 18 % 17 %
-13 %
-8 %...
12
Long-lasting competitive advantage through
must-win battles
Cramo is executing its strategy through must-win battles.
M...
13
Operational Excellence in practise
Emphasis on each individual’s and team’s efforts in securing sales, containing cost
...
14
58,2
66,3
37,7
34,4
-80
-60
-40
-20
0
20
40
60
80
Q1/09
Q2/09
Q3/09
Q4/09
Q1/10
Q2/10
Q3/10
Q4/10
Q1/11
Q2/11
Q3/11
Q4/...
15
Company X
EUR million
Total sales 100
Direct costs -35
Gross Profit 65
Gross Margin 65 %
Other operating income 1
Other...
2013 sales EUR 95m
Medium lease duration
29,400 modular units
Non-construction modular space
Schools
Daycare
Officespace
A...
17
0 %
10 %
20 %
30 %
40 %
50 %
60 %
70 %
80 %
90 %
100 %
0
10 000
20 000
30 000
40 000
50 000
60 000
70 000
80 000
90 000...
18
ProfitabilityProfitability
EBITA-% > 15 % of
sales over a business
cycle
EBITA-% > 15 % of
sales over a business
cycle
...
19
0%
10%
20%
30%
40%
50%
60%
0
20
40
60
80
100
120
Oct12
Nov12
Dec12
Jan13
Feb13
Mar13
Apr13
May13
Jun13
Jul13
Aug13
Sep1...
20
Future prospects
Since the summer of 2013, economic uncertainty has given way to a more stable
development in Europe
Th...
21
Strong market
position and
economies of
scale
Strong track
record of
growth and
operational
efficiency
Stability and
gr...
22
APPENDICES
23
Listed peer companies and share price development
US equipment rental companies
United Rentals H&E Equipment
Services
M...
24
Product offering in detail
Product offering covers every building phase from start to finish
Tools Access equipment
Con...
25
Service offering in detail
Services are an important part of being a total rental solutions provider
26
Summary of key figures
Change Change
EUR million (unless otherwise stated) % %
INCOME STATEMENT
Sales 175,1 184,6 -5,1 ...
27
Consolidated income statement
Change Change
EUR (1 000) % %
SALES 175 124 184 603 -5,1 % 657 315 688 391 -4,5 %
Other o...
28
Consolidated balance sheet
31.12. 31.12. Change
EUR (1 000) 2013 2012 %
ASSETS
NON-CURRENT ASSETS
Tangible assets 606 6...
29
Cash flow statement
1-12/ 1-12/
EUR (1 000) 2013 2012
Net cash flow from operating activities 160 253 145 992
Net cash ...
30
Segment performance
Change Change
SALES, EUR (1 000) % %
Finland 26 667 28 576 -6,7 % 102 577 112 666 -9,0 %
Sweden 87 ...
31
Cramo investor mobile site
Mobile website for investors
The site offers, for example, information
on current share pric...
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Cramo equity story, why invest in cramo

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Cramo equity story, why invest in cramo

  1. 1. FOR A GREAT DAY AT WORK CRAMO PLC Investor material EQUITY STORY Why invest in Cramo
  2. 2. 2 Cramo in brief A leading equipment rental service company Russia Denmark Germany Poland Czech Republic Austria Hungary Slovakia Ukraine Belarus Lithuania Latvia Estonia Norway Sweden Finland Romania Moldova Bulgaria Slovenia Croatia Bosnia and Herzegovina Serbia Macedonia Albania Kalinin- grad  Cramo is one of the largest equipment rental service companies in Europe, with operations in 16 countries and 2013 sales of EUR 657 million.  Cramo is also the no.1 player in both construction and non- construction modular space in the Nordic countries.  In 2013, Cramo posted EBITA of EUR 80 million (12,2% of sales).  The company operates under the Cramo brand in Nordic and Baltic countries, Poland and the Czech Republic. In Germany, Austria and Hungary, under Theisen Baumaschinen brand, and in Russia and Ukraine under the brand of Fortrent (50% owned JV).  In addition to strong market position and brand, Cramo’s key strength is extensive rental concept combined with flexible business model and operational efficiency.  Cramo's 2,400 employees serve over 150,000 customers.  Cramo was founded in 1953 and is listed on the Helsinki Stock Exchange. 2013 sales by industry segment 2013 sales by product group* 2013 sales by business segment 14 countries + Fortrent in Russia and Ukraine Number of depots 357 48 % 15 % 14 % 4 % 11 % 8 % Sweden Finland Norway Denmark Central Europe Eastern Europe 55 % 24 % 15 % 3 % 4 % Construction Other Industry Public sector Households Other 31 % 17 %23 % 27 % 2 % Tools Constr equipment Access equipment Modular space Other * Sales generated from rental-related services have been allocated to product groups
  3. 3. 3 Key industry and company specific drivers Cramo is well positioned to capitalise on attractive rental industry fundamentals with further upside potential from recovering economy. Economic indicators improving Structural change drives rental growth Cramo is well- positioned Ambition to deliver Shareholder structure  Europe shows signs of recovery in 2014.  Confidence indicators on construction and rental business conditions show improvement although there are regional variations.  Rental is a growing industrial services business with additional growth drivers to construction.  Eg increasing rental penetration, outsourcing, rental related services, environmental issues, demographics and attractive rental economics will drive industry growth.  → Equipment rental growth rate has surpassed construction growth.  Favourable geographical exposure towards stronger European economies.  Cramo has gained strong market position and scale benefits through a period of rapid growth.  → Current focus is on profitability and cash flow through operational excellence.  Efficiency improvements boost the degree of operational leverage.  Non-construction modular space business provides stability.  Clear strategy to drive operational excellence and gain long-lasting competitive advantage.  Cramo targets above-market growth and EBITA margin above 15% over a business cycle.  Gearing is targeted below 100% while distributing stable dividend of about 40% of EPS. Near term outlook  Eurozone is estimated to take an upward turn in 2014.  Market-specific differences in construction and the demand for rental are still considerable.  Cramo’s guidance is for improving sales and EBITA margin in 2014.  High free float and good liquidity.  Cramo has two core shareholders holding above 5% stake.  Foreign shareholders own ~ 42% of the company.
  4. 4. 4 Leading indicators Cramo has a favorable geographical exposure towards stronger European economies. Construction output* Construction confidence (seasonally adjusted)** * Sources: Euroconstruct, Nov 2013 and VTT, Dec 2013. Country-specific data in brackets includes: Finland - Rakennusteollisuus RT (Oct 2013); Sweden - Sveriges Byggindustrier (December 2013); Denmark - Dansk Byggeri (Nov 2013). ** Source: European Commission -80 -60 -40 -20 0 20 40 60 Jan-07 May-07 Sep-07 Jan-08 May-08 Sep-08 Jan-09 May-09 Sep-09 Jan-10 May-10 Sep-10 Jan-11 May-11 Sep-11 Jan-12 May-12 Sep-12 Jan-13 May-13 Sep-13 Jan-14 Sweden Finland Denmark Germany PolandConstruction output, % change 2013E 2014F 2015F -2,7 % 0,5 % (-3,0%) (-1,0%) -0,4 % 1,6 % (-0,2%) (+3,0%) Norway 3,7 % 3,6 % 3,7 % 2,4 % 3,3 % (-0,8%) -2,9 % Baltic Countries 2,0 % -1,0 % 0,0 % Poland -8,9 % 3,5 % 4,4 % Czech Republic -8,2 % -4,2 % -0,9 % Slovakia -7,8 % -0,8 % 1,8 % Russia -1,0 % 2,0 % 5,0 % Germany 0,3 % 2,7 % 1,2 % Austria 0,5 % 1,2 % 1,3 % Finland 1,6 % Sweden 2,9 % Denmark 4,2 %
  5. 5. 5 Construction volume trends for selected countries Signs of gradual recovery in 2014… Source: Euroconstruct, November 2013 Finland Sweden Norway Germany 100 89 95 97 94 91 92 93 96 70 80 90 100 110 120 2008 2009 2010 2011 2012 2013E 2014F 2015F 2016O Residential construction Non-residential construction Civil engineering Total construction 100 94 99 102 99 99 100 103 106 80 90 100 110 120 130 140 2008 2009 2010 2011 2012 2013E 2014F 2015F 2016O Residential construction Non-residential construction Civil engineering Total construction 100 98 100 105 104 104 107 108 109 80 90 100 110 120 2008 2009 2010 2011 2012 2013E 2014F 2015F 2016O Residential construction Non-residential construction Civil engineering Total construction 100 98 97 104 109 113 117 122 124 80 100 120 140 160 2008 2009 2010 2011 2012 2013E 2014F 2015F 2016O Residential construction Non-residential construction Civil engineering Total construction Cramo’s current rental fleet in Germany is still focused on the civil engineering sector
  6. 6. 6 Confidence among European rental companies …which consequently improves confidence among rental operators. Business conditions and rental activity improved notably in H2 2013. Source: ERA / IRN Rental Tracker Survey June 2009 – December 2013 (International Rental News/European Rental Association) Improving Declining Current rental activity & conditions in Europe Q4 2013 Nominal rental market growth estimates -80 % -60 % -40 % -20 % 0 % 20 % 40 % 60 % 80 % Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Current business conditions Quarterly activity year-on-year -5,5 % 2,3 % 1,8 % -0,9 % 0,7 % -17,2 % 3,5 % 2,3 % 3,7 % 1,9 % 4,0 % 3,6 % 4,5 % 3,0 % 2,7 % 2,8 % 3,7 % 5,5 % -20% -15% -10% -5% 0% 5% 10% Finland Sweden Norway Denmark Germany Poland 2013F 2014F 2015F
  7. 7. 7 0,0 % 0,5 % 1,0 % 1,5 % 2,0 % 2,5 % 3,0 % 3,5 % 4,0 % Long-term rental growth drivers Rental is a growing industrial services business that is driven by strong structural growth drivers… Rental penetration and market size* *Source: European Rental Association. Penetration = rental turnover / construction output Total market size in Europe EUR 24bn (2013E) → Nordic countries EUR 3,3bn (2012) Increasing rental penetration, outsourcing Rental-related services Exchange of manpower for machinery Environmental concerns, energy efficiency and sustainability Renovation construction Demographic changes Capital conservation Storage space Inventory control Site downtime Cost control Disposal costs Rental economics Penetration (%) Bubble size describes market volume Presence No presence UK EUR 6,1 bn 2,55% France EUR 3,9 bn 1,55% Sweden EUR 1,5 bn 3,3% Poland EUR 0,40 bn 0,5% Germany EUR 3,5 bn 1,35% Norway EUR 0,95 bn 2,0% Denmark EUR 0,43 bn 1,7% Finland EUR 0,46 bn 1,4% Cramo is the clear #1 in the most advanced rental market in Europe… …and has established a strong foothold in the 3rd largest market by volume. Growth drivers
  8. 8. 8 Rental vs. construction growth …which means growth has clearly surpassed construction market growth over the cycle. Changes in rental revenues vs construction output* * Source: ERA, FIEC data **Source: Construction growth rates from Euroconstruct (VTT is the Euroconstruct partner institute in Finland), June 2013. Rental growth rates and estimates from VTT, June 2013 Case Finland: Volume index (real terms)** 95 100 105 110 115 120 2009 2010 2011 2012E 2013F 2014F Finnishrentalandconstructionvolumeindex(2009=100) Rental market Construction market 13% -20 % -15 % -10 % -5 % 0 % 5 % 10 % 15 % 20 % 25 % 2006 2007 2008 2009 2010 2011 2012 Total equipment rental market Top 50 European rental companies European construction output
  9. 9. 9 828 657 647 460 420 397 336 332 290 288 0 200 400 600 800 1000 Loxam Cramo Ramirent Kilotou Sarens Speedy Hire Algeco Scotsman Aggreko Mediaco Levage Zeppelin Rental Leading European rental companies Cramo is # 2 in Europe Areas of operation Construction equipment, tools Construction equipment, tools Construction equipment, tools, modular space Cranes Power, temperature control and compressors Construction equipment, tools, party/events, accomod. Construction equipment, tools Modular space Source: International Rental News, June 2013, Company reports Type of operation France FRA, IRE, UK, GER, SPA, BEL, SWI, LUX, DEN, MOR FIN, SWE, NOR, DEN, RUS, EST, LAT, LIT, POL, CZE, SLO, HUN, UKR FIN, SWE, NOR, DEN, RUS, EST, LAT, LIT, POL, CZE, SLO, HUN, UKR, GER, AUS UK, IRE, Middle East, North Africa Germany, Austria, the Czech republic, Slovakia, Russia Europe, North America, Middle East, Brazil, Australia/NZ, Asia (France) (Finland) (Finland) (UK) (France) (Belgium) (US) (France) (UK) (Germany) Worldwide Global FranceCranes, construction equipment Construction equipment, tools European Sales (EUR million) (2012) (2013) (2013) (2012) (2012) (2012) (2012) (2012) (2012) (2012)
  10. 10. 10 0 % 5 % 10 % 15 % 20 % 25 % 0 100 200 300 400 500 600 700 800 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 EBITAmargin,% Sales,EURmillion Sales EBITA margin Strategy Cramo has gained its strong market position through international expansion Current focus is on profitability and cash flow through operational excellence. Domestic growth International expansion Operational excellence Acquisition of Theisen (GER), Tidermans (SWE) and Stavdal (NOR) Acquisition of Cramo Group …and >15% margin over the cycle 06-11 CAGR 44% Target of above market sales growth…  Main focus on profitability and cash flow  Main focus on international growth
  11. 11. 11 2011 2012 2013 Sales 10 % 10 % 8 % EBITA 2 % 8 % 9 % 2011 2012 2013 Sales 309 322 317 EBITA-% 19 % 18 % 17 % -13 % -8 % -3 % 2 % 7 % 12 % 17 % 22 % 0 50 100 150 200 250 300 2011 2012 2013 Sales 10 % 10 % 11 % EBITA 4 % 0 % -1 % 2011 2012 2013 Sales 35 38 29 EBITA-% -6 % -13 % 0 % -13 % -8 % -3 % 2 % 7 % 12 % 17 % 22 % 0 50 100 150 200 250 300 2011 2012 2013 Sales 5 % 5 % 4 % EBITA -3 % -6 % 0 % 2011 2012 2013 Sales 12 % 12 % 14 % EBITA 1 % 6 % 7 % 2011 2012 2013 Sales 45 % 46 % 48 % EBITA 70 % 67 % 63 % 2011 2012 2013 Sales 19 % 16 % 15 % EBITA 25 % 25 % 22 % Russia Denmark Germany Poland Czech Republic Austria Hungary Slovakia Ukraine Lithuania Latvia Estonia Norway Sweden Finland Kalinin- grad 2011 2012 2013 Sales 71 67 75 EBITA-% 5 % 0 % -1 % -13 % -8 % -3 % 2 % 7 % 12 % 17 % 22 % 0 50 100 150 200 250 300 2011 2012 2013 Sales 79 84 91 EBITA-% 1 % 6 % 7 % -13 % -8 % -3 % 2 % 7 % 12 % 17 % 22 % 0 50 100 150 200 250 300 Geographical segments Sweden is the largest contributor, followed by Finland. Target is to continue positive trend in Norway and EE and turn CE’s and Denmark’s contribution positive. Sales EBITA-% EBITA Share of Group Share of Group Share of Group Share of Group Share of Group Share of Group SWEDEN NORWAY CENTRAL EUROPE EASTERN EUROPE DENMARK Note: excluding non-allocated items 2011 2012 2013 Sales 128 113 103 EBITA-% 16 % 19 % 19 % -13 % -8 % -3 % 2 % 7 % 12 % 17 % 22 % 0 50 100 150 200 250 300 2011 2012 2013 Sales 67 70 53 EBITA-% 3 % 10 % 16 % -13 % -8 % -3 % 2 % 7 % 12 % 17 % 22 % 0 50 100 150 200 250 300 FINLAND
  12. 12. 12 Long-lasting competitive advantage through must-win battles Cramo is executing its strategy through must-win battles. Must-Win Battles 2011-13 Achievements in 2013 Objectives for 2014 11 Roll-out the renewed Cramo Rental Concept Roll-out the renewed Cramo Rental Concept • Renewed Cramo Rental Concept implemented, special focus in NO and GER • Dynamic pricing in SWE • Renewed Cramo Rental Concept implemented, special focus in NO and GER • Dynamic pricing in SWE • Continue implementation and best practice sharing across the Group • Further roll out dynamic pricing • Continue implementation and best practice sharing across the Group • Further roll out dynamic pricing 22 Implement Cramo Processes Implement Cramo Processes • Harmonised rental platform implemented in DEN and GER • Harmonised processes • Harmonised rental platform implemented in DEN and GER • Harmonised processes • Continue implementation, benefit harvesting and best practice sharing across the Group • Continue implementation, benefit harvesting and best practice sharing across the Group 33 Develop Cramo PeopleDevelop Cramo People • Cramo training and career development programme implemented in selected countries • One Cramo share program • Cramo training and career development programme implemented in selected countries • One Cramo share program • Continue implementation and best practice sharing across the Group • Continue implementation and best practice sharing across the Group 44 Implement Cramo Performance Management Implement Cramo Performance Management • Cramo Performance Management model implemented down to depot level in all countries • Cramo Performance Management model implemented down to depot level in all countries • Continue implementation and best practice sharing across the group • Continue implementation and best practice sharing across the group 55 Drive Profitable Growth in Modular Space in NO & DEN Drive Profitable Growth in Modular Space in NO & DEN • Profitable growth targets achieved in NO and DEN • Foothold established in the Baltics, POL and GER • Profitable growth targets achieved in NO and DEN • Foothold established in the Baltics, POL and GER • Further strengthen ”1 position” in the Nordics • Continue expansion outside the Nordics • Further strengthen ”1 position” in the Nordics • Continue expansion outside the Nordics
  13. 13. 13 Operational Excellence in practise Emphasis on each individual’s and team’s efforts in securing sales, containing cost structure and improving capital efficiency. WELL BALANCED COST AND DIFFERENTIATION APPROACH CRAMO PERFORMANCE MANAGEMENT CULTURE AND VALUES IMPLEMENTATION OF MUST-WIN BATTLES CUSTOMER OFFERINGS AND SALES EXCELLENCE Practical examples: 1. Implementation of Cramo Rental Concept 2. Constant development of innovative offerings 3. Implementation of modern pricing strategy PROCESSES EFFICIENCY Practical examples: 1. Harmonised business and support processes 2. Implementation of harmonised ERP system 3. Implementation of harmonised BI solution CAPITAL EFFICIENCY Practical examples: 1. Pan-European fleet optimisation program 2. Net working capital reduction program 3. Development of sourcing How do we drive Operational Excellence? What does Operational Excellence mean in practice? Sweden/Finland: Further improve contribution level, seek innovative ways to increase potential. Norway/Denmark/CE: Continue the positive trend in Norway, turn Central Europe’s and Denmark’s contribution to positive. Fortrent JV/EE: Capture high value creation potential Fixed cost savings of EUR 24m in 2013 NWC down from 4,2% of sales to 2,9%
  14. 14. 14 58,2 66,3 37,7 34,4 -80 -60 -40 -20 0 20 40 60 80 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Quarterlycashflow(EURm) Cash flow from operations Cash flow after investments Operational excellence drives cash flow Cash flow is seasonally weighted towards the year-end. Cash flow after investments is typically counter-cyclical in the equipment rental industry. Quarterly cash flow development 20132012201120102009 Acquisition of Theisen Group Acquisition of Tidermans in Sweden and Stavdal in Norway Formation of Fortrent and outsourcing cases in Norway All time high operative cash flow in Q4/2013
  15. 15. 15 Company X EUR million Total sales 100 Direct costs -35 Gross Profit 65 Gross Margin 65 % Other operating income 1 Other operating income ratio 1 % Indirect costs -40 Indirect cost ratio 40 % Capital costs -14 Capital cost ratio 14 % EBITA 12 EBITA margin 12 % Year N Degree of operating leverage = Gross margin EBITA margin = 65% 12% = 5.4 +5.4x Note: The above example is illustrative, seeking to only highlight the potential impact of operating leverage. Note that full leverage is achieved only if potential increase in sales can be generated with the existing fleet size and cost base. Of further note is that the above equation does not consider price increases 5 % 27 % Sales change EBITA change High operating leverage – illustration Focus on operational excellence further boosts the degree of operational leverage when volumes return.
  16. 16. 2013 sales EUR 95m Medium lease duration 29,400 modular units Non-construction modular space Schools Daycare Officespace Accommodation Construction Sitehuts Rental price Quality 14,4% of Group 12,3% of Group (2013) F20 Flexi huts A50 7 Series A-Series B-Series C60 PK 2000 C100 C30 9-Series C40 C80 C10 Nordic 2013 modular space sales EUR 81m EUR 192m invested capital (YE 2013) Long lease durations 15,400 modular units Utilisation stable at around 85% Central ventilation Local ventilation Energy efficiency Clear no. 1 player in Nordic modular space Nordic modular space all together accounted for 27% of Group sales in 2013. Cramo’s energy efficient solutions have been designed for Nordic conditions. 16
  17. 17. 17 0 % 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % 100 % 0 10 000 20 000 30 000 40 000 50 000 60 000 70 000 80 000 90 000 100 000 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Timeutilisation,% QuarterlyR12mNordicmodularspacesales, EUR1000 Sales Time utilisation* Non-construction modular space provides stability Non-construction modular space is an attractive business with longer contract length, higher utilisation and better margins than in construction rental services on average. Rolling 12-month Nordic sales and utilisation (non-construction) Note: Excluding modular space production and customised modules rental businesses in Finland which was divested in Q1/2012 and customised modular space portfolio in Finland which was divested in Q1/2010. * Time utilisation = Days modules are on rent for a given period / Total available days for the period, where “on-rent day” refers to a day when a unit is in control of the renter and is earning revenue. End markets 08-13 CAGR 6,3% 10,6 % 14,7 % 12,6 % 11,1 % 12,3 % 12,3 % 2008 2009 2010 2011 2012 2013 ShareofGroup sales Cramo’s strategic target is to further build up profitable modular space business by strengthening no.1 position in Nordic countries and gaining bigger foothold outside Nordics. In 2014, Cramo launched a new sub- brand, Adapteo, and is preparing to launch another new energy efficient module. 58 % 37 % 5 % Public sector Other industry Construction industry
  18. 18. 18 ProfitabilityProfitability EBITA-% > 15 % of sales over a business cycle EBITA-% > 15 % of sales over a business cycle Debt leverageDebt leverage Gearing maximum 100 % Gearing maximum 100 % SalesSales Sales growth faster than the market Sales growth faster than the market Return on equityReturn on equity ROE > 12 % over a business cycle ROE > 12 % over a business cycle Profit distribution Profit distribution Profit distribution policy: stability, with appr. 40 % of EPS Profit distribution policy: stability, with appr. 40 % of EPS EPS DPS ? Group Financial Target level (sales growth is compared to INR Europe 50 development) * Board proposal * Financial targets Cramo aims to grow faster than the market, reach >15% EBITA and >12% ROE over the cycle. Gearing is targeted below 100% while distributing stable dividend ca. 40% of EPS.
  19. 19. 19 0% 10% 20% 30% 40% 50% 60% 0 20 40 60 80 100 120 Oct12 Nov12 Dec12 Jan13 Feb13 Mar13 Apr13 May13 Jun13 Jul13 Aug13 Sep13 Oct13 Nov13 Dec13 Jan14 EURmillion Share turnover (lhs)* Foreign ownership (rhs)** 10 largest shareholders (12/2013) Monthly share turnover (EURm) Private placement of 4 645 479 shares (10.9%). *Source: ThomsonReuters (venues: Helsinki, Chi-X Europe, Stockholm, BATS, Turquoise, BATS, CHI-X OTC, BOAT, LES, POSIT, UBS MTF, Instinet BlockMatch, SIGMA X MTF, Burgundy) **Source: Euroclear (month-end).  Two core shareholders above 5% → Free float ~ 85%  Foreign ownership ~ 42% (up 19 %-points in 2013)  Top management holds 201,545 Cramo shares Shareholders and liquidity Cramo’s high free float ensures good liquidity. Liquidity has improved substantially since the private placement of 11% of shares in September. # Shareholder Shares % 1 Hartwall Capital Oy Ab 4 491 702 10,48 2 Rakennusmestarien Säätiö 2 129 422 4,97 3 Nordea Nordenfund 1 251 507 2,92 4 Varma Mutual Pension Insurance Company 968 387 2,26 5 Odin Finland 825 518 1,93 6 Fondita Nordic Micro Cap 775 000 1,81 7 Investment fund Aktia Capital 600 000 1,40 8 OP-Focus Non-UCITS Fund 477 744 1,12 9 OP-Delta Fund 468 605 1,09 10 OP-Finland Value Fund 451 741 1,05 Ten largest owners, total 12 439 626 29,03 Nominee registered 15 537 301 36,26 Others 14 867 406 34,70 Total 42 844 333 100,00
  20. 20. 20 Future prospects Since the summer of 2013, economic uncertainty has given way to a more stable development in Europe The economies in the Eurozone are estimated to take an upward turn in 2014. Growth is expected particularly in the second half of the year Market-specific differences in construction and the demand for rental are still considerable in Europe. In the long term, the equipment rental market is expected to grow faster than the construction market. Changes in demand usually follow those in construction with a delay and may be strong. The European Rental Association (ERA) is expecting equipment rental to grow in all of Cramo’s main market areas in 2014. Guidance for 2014: “In 2014, Cramo Group’s EBITA margin will continue to improve compared to 2013. Cramo Group’s sales is also expected to grow in 2014, however, exact sales is exposed to changing exchange rates.”
  21. 21. 21 Strong market position and economies of scale Strong track record of growth and operational efficiency Stability and growth from modular space solutions Strong brand and total offering (products and services) Experienced and committed management team Well-positioned to benefit from attractive industry fundamentals Strong free cash flow generation Clear strategy to drive profitability and cash flow Well positioned for growth, margin expansion and strong cash flow …mission to build flexibility and efficiency through rental solutions. Vision to be the role model in rental and…
  22. 22. 22 APPENDICES
  23. 23. 23 Listed peer companies and share price development US equipment rental companies United Rentals H&E Equipment Services Mobile Mini Modular space companies Speedy Hire GAM Aggreko GL Events Cramo Ramirent Ashtead Lavendon European equipment rental companies Share price development 60 100 140 180 220 260 300 340 380 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 31Ded2012=100 Cramo Ramirent Ashtead Lavendon Speedy Hire GAM Aggreko GL Events United Rentals H&E Mobile Mini
  24. 24. 24 Product offering in detail Product offering covers every building phase from start to finish Tools Access equipment Construction equipment Modular space
  25. 25. 25 Service offering in detail Services are an important part of being a total rental solutions provider
  26. 26. 26 Summary of key figures Change Change EUR million (unless otherwise stated) % % INCOME STATEMENT Sales 175,1 184,6 -5,1 % 657,3 688,4 -4,5 % EBITDA 48,2 46,2 4,3 % 173,8 179,6 -3,2 % Operating profit (EBITA) before amortisation and impairment of intangible assets resulting from acquisitions 24,8 21,9 12,9 % 79,9 78,0 2,4 % Operating profit/loss (EBIT) 21,8 17,3 26,3 % 66,8 64,5 3,6 % Profit/Loss before tax (EBT) 18,0 12,1 49,7 % 51,9 44,3 17,4 % Profit/Loss for the period 16,3 14,2 14,7 % 42,8 38,7 10,4 % SHARE-RELATED INFORMATION Earnings per share (EPS), EUR 0,38 0,34 11,9 % 1,01 0,94 8,0 % Earnings per share (EPS), diluted, EUR 0,38 0,34 10,9 % 1,00 0,93 7,4 % Shareholders' equity per share, EUR 11,56 11,58 -0,2 % BALANCE SHEET Equity ratio, % 47,1 % 48,6 % Gearing, % 72,9 % 65,1 % Net interest-bearing liabilities 364,8 346,9 5,2 % OTHER INFORMATION Return on investment, rolling 12-month, % 7,7 % 7,3 % Return on equity, rolling 12-month, % 8,3 % 7,5 % Gross capital expenditure (incl. acquisitions) 30,7 25,6 19,9 % 129,6 125,1 3,6 % of which related to acquisitions and business combinations -0,5 29,1 0,8 Cash flow from operating activities 66,3 58,2 14,0 % 160,3 146,0 9,8 % Cash flow after investments 34,4 37,7 -8,7 % 50,3 62,2 -19,2 % Average number of personnel, FTE 2 463 2 664 -7,5 % Number of personnel at end of period, FTE 2 416 2 555 -5,4 % 10-12/ 2013 10-12/ 2012 1-12/ 2013 1-12/ 2012
  27. 27. 27 Consolidated income statement Change Change EUR (1 000) % % SALES 175 124 184 603 -5,1 % 657 315 688 391 -4,5 % Other operating income 3 526 3 316 6,3 % 10 007 11 321 -11,6 % Production for own use 0 0 3 657 Materials and services -63 426 -68 182 7,0 % -228 002 -241 301 5,5 % Employee benefit expenses -36 077 -37 173 2,9 % -138 732 -143 728 3,5 % Other operating expenses -31 996 -36 334 11,9 % -127 385 -138 763 8,2 % Depreciation and impairment ontangible assets and assets held for sale -23 451 -24 283 3,4 % -93 868 -101 571 7,6 % Share of profit/loss of joint ventures 1 064 -2 53300,0 % 613 43 1325,6 % EBITA 24 765 21 945 12,9 % 79 948 78 048 2,4 % % of sales 14,1 % 11,9 % 12,2 % 11,3 % Amortisation and impairment on intangible assets resulting from acquisitions and disposals -2 938 -4 659 36,9 % -13 150 -13 569 3,1 % OPERATING PROFIT/LOSS (EBIT) 21 827 17 285 26,3 % 66 799 64 479 3,6 % % of sales 12,5 % 9,4 % 10,2 % 9,4 % Finance costs (net) -3 793 -5 237 27,6 % -14 857 -20 223 26,5 % PROFIT/LOSS BEFORE TAXES 18 034 12 050 49,7 % 51 941 44 257 17,4 % % of sales 10,3 % 6,5 % 7,9 % 6,4 % Income taxes -1 733 2 158 -180,3 % -9 160 -5 508 -66,3 % PROFIT/LOSS FOR THE PERIOD 16 300 14 208 14,7 % 42 781 38 749 10,4 % % of sales 9,3 % 7,7 % 6,5 % 5,6 % 10-12/ 2013 10-12/ 2012 1-12/ 2013 1-12/ 2012
  28. 28. 28 Consolidated balance sheet 31.12. 31.12. Change EUR (1 000) 2013 2012 % ASSETS NON-CURRENT ASSETS Tangible assets 606 625 615 034 -1,4 % Goodwill 165 352 169 736 -2,6 % Other intangible assets 101 100 111 751 -9,5 % Deferred tax assets 14 820 14 604 1,5 % Available-for-sale financial investments 347 349 -0,6 % Investments in joint ventures 17 475 97 Loan receivables 20 250 Trade and other receivables 1 129 1 071 5,4 % TOTAL NON-CURRENT ASSETS 927 099 912 641 1,6 % CURRENT ASSETS Inventories 7 841 9 689 -19,1 % Trade and other receivables 127 236 136 435 -6,7 % Income tax receivables 1 343 4 794 -72,0 % Derivative financial instruments 2 053 303 577,6 % Cash and cash equivalents 4 770 10 340 -53,9 % TOTAL CURRENT ASSETS 143 243 161 562 -11,3 % Assets held for sale 4 369 3 540 23,4 % Assets to be transferred to joint venture 30 392 TOTAL ASSETS 1 074 710 1 108 136 -3,0 % 31.12. 31.12. Change EUR (1 000) 2013 2012 % EQUITY AND LIABILITIES EQUITY Share capital 24 835 24 835 0,0 % Other reserves 318 742 304 373 4,7 % Fair value reserve 119 119 0,0 % Hedging fund -6 726 -8 144 17,4 % Translation differences -2 288 7 500 -130,5 % Retained earnings 165 900 154 324 7,5 % EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT COMPANY 500 582 483 007 3,6 % Hybrid capital 49 630 TOTAL EQUITY 500 582 532 637 -6,0 % NON-CURRENT LIABILITIES Interest-bearing liabilities 269 881 271 713 -0,7 % Derivative financial instruments 6 001 8 861 -32,3 % Deferred tax liabilities 75 337 80 188 -6,0 % Retirement benefit obligations 1 644 1 574 4,4 % Other non-current liabilities 3 341 752 344,3 % TOTAL NON-CURRENT LIABILITIES 356 204 363 087 -1,9 % CURRENT LIABILITIES Interest-bearing liabilities 99 719 87 577 13,9 % Derivative financial instruments 422 1 347 -68,7 % Trade and other payables 112 022 119 460 -6,2 % Income tax liabilities 5 761 1 055 446,1 % TOTAL CURRENT LIABILITIES 217 923 209 439 4,1 % Liabilities to be transferred to joint venture 2 974 TOTAL LIABILITIES 574 127 575 499 -0,2 % TOTAL EQUITY AND LIABILITIES 1 074 710 1 108 136 -3,0 %
  29. 29. 29 Cash flow statement 1-12/ 1-12/ EUR (1 000) 2013 2012 Net cash flow from operating activities 160 253 145 992 Net cash flow from investing activities -109 976 -83 776 Cash flow from financing activities Change in interest-bearing receivables -121 2 528 Change in finance lease liabilities -29 755 -39 353 Change in interest-bearing liabilities 42 492 -21 591 Hybrid capital -56 000 -6 000 Proceeds from share options exercised 6 141 3 633 Dividends paid -17 747 -12 374 Net cash flow from financing activities -54 990 -73 157 Change in cash and cash equivalents -4 713 -10 941 Cash and cash equivalents at period start 10 340 22 532 Cash to be transferred to joint venture -2 005 Translation differences -857 754 Cash and cash equivalents at period end 4 770 10 340
  30. 30. 30 Segment performance Change Change SALES, EUR (1 000) % % Finland 26 667 28 576 -6,7 % 102 577 112 666 -9,0 % Sweden 87 358 88 109 -0,9 % 316 670 322 359 -1,8 % Norway 22 273 23 384 -4,8 % 90 916 84 167 8,0 % Denmark 7 285 8 965 -18,7 % 28 512 37 684 -24,3 % Central Europe 19 440 16 981 14,5 % 74 652 66 973 11,5 % Eastern Europe 13 512 19 916 -32,2 % 52 826 70 263 -24,8 % Inter-segment sales -1 411 -1 328 -6,3 % -8 837 -5 720 -54,5 % Group sales 175 124 184 603 -5,1 % 657 315 688 391 -4,5 % Change Change EBITA, EUR (1 000) % % Finland 6 231 6 530 -4,6 % 19 312 20 975 -7,9 % Sweden 14 576 16 157 -9,8 % 55 334 57 578 -3,9 % Norway 2 040 1 788 14,1 % 6 600 5 319 24,1 % Denmark 87 -3 607 102,4 % 30 -5 022 100,6 % Central Europe 233 826 -71,8 % -1 062 -236 -350,0 % Eastern Europe 3 546 3 191 11,1 % 8 204 6 722 22,0 % Non-allocated capital gains and other income 2 196 Non-allocated Group activities -1 944 -2 900 33,0 % -8 766 -9 761 10,2 % Eliminations -3 -42 92,9 % 297 277 7,2 % Group EBITA 24 765 21 945 12,9 % 79 948 78 048 2,4 % 10-12/ 2013 10-12/ 2012 1-12/ 2013 1-12/ 2012 10-12/ 2013 10-12/ 2012 1-12/ 2013 1-12/ 2012
  31. 31. 31 Cramo investor mobile site Mobile website for investors The site offers, for example, information on current share price and latest releases and is optimised for smartphones and tablet computers To visit the site, please go to www.mobileir.cramo.com

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