CRAMO PLC INTERIM REPORT 1.1.2014 – 31.3.2014 CEO Vesa Koivula CFO Martti Ala-Härkönen FOR A GREAT DAY AT WORK
Contents Highlights of Q1/2014 and market � outlook Interim report Q1/2014 � � Group performance � Business segments Focus on profitable growth and � value creation Appendix � � Additional information 2
Highlights of Q1/2014 Performance started improving at the end of the quarter • Q1/2014 Highlights – Sales EUR 140,3m (148,5m), down 5,6%. Sales change in local currencies, excluding restructuring in Russia, +0,8% Finland – EBITA EUR 4,4m (6,4m); EBITA margin 3,1% (4,3%) – EPS* EUR -0,03 (-0,04) – Return on equity (rolling 12 m.) 8,5% (6,9%) Norway Russia – Cash flow after investments EUR -10,7m (-18,9m) Sweden Estonia – Gearing 76,3% (69,7%) Denmark – Expansion into the German modular space market Latvia through the acquisition of C/S RaumCenter in April Lithuania Kalinin- grad – The construction machinery rental business in Finland Belarus was strengthened through the acquisition of Optirent in Poland Germany April Czech Republic Ukraine Slovakia • Guidance for 2014 unchanged Switzerland Austria Moldova Hungary – In 2014, Cramo Group’s EBITA margin will continue to Slovenia Romania improve compared to 2013. Cramo Group’s sales is also Croatia expected to grow in 2014, however, exact sales is Bosnia and Serbia Herzegovina Bulgaria exposed to changing exchange rates. Number of depots Macedonia 03/2014: 350 Albania * Undiluted EPS 3
Lead indicator: economic sentiment 2008-Q1/14 125 Highlights Jan 2011 120 Economic sentiment � 115 improving in Europe, driven by markedly more 110 confident consumers Economic Sentiment Indicator (ESI) 105 − Construction and rental markets are late-cyclical and 100 should benefit from the improved outlook with a delay 95 Sentiment already � 90 above long-term Long-term average 85 average in Sweden, Germany and Denmark 80 Poland still under long- � 75 term average but 70 improving Mar 2009 65 Grimmer views in � Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Finland Finland Sweden Germany Denmark Poland Europe Source: European Commission, April 2014 4
Lead indicator: construction confidence 2008-Q1/14 60 Highlights Feb 2011 Slightly improving � 40 development in construction confidence Construction Confidence Indicator (mean-adjusted) in Europe 20 Confidence above � long-term average in Sweden, Germany, 0 Denmark and Poland Finland still below long- � -20 term average Long-term average -40 Jun 2009 -60 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Finland Sweden Germany Denmark Poland Europe Source: European Commission, April 2014 5
Construction growth estimates 2014-16 Recent estimates indicate strong growth in Sweden in 2014 Generally strengthening outlook in almost all countries over 2014-16 Construction output, % change 2014F 2015F 2016O 0,5% 1,6% Finland 2,8% (-1,0%) (+2,0%) 1,6% 2,9% Sweden 2,2% (+5,0%) (+2,0%) Norway 3,6% 3,7% 2,0% 3,3% 4,2% Denmark 5,3% (3,2%) (0,0%) Baltic Countries -1,0% 0,0% 3,0% Poland 3,5% 4,4% 5,6% Czech Republic -4,2% -0,9% 1,2% Slovakia -0,8% 1,8% 2,2% Russia 2,0% 5,0% 4,0% Germany 2,7% 1,2% 0,7% Austria 1,2% 1,3% 0,8% Sources: Euroconstruct, November 2013 and VTT, December 2013 Country-specific data in brackets includes: Finland - Rakennusteollisuus RT (April 2014); Sweden - Sveriges Byggindustrier (February 2014); Denmark - Dansk Byggeri (February 2014) 6
Positive trend continued in European rental Confidence in Europe’s rental sector continued to improve in Q1/14 UK remains the most positive region, followed by Nordics and Germany Current rental activity & conditions in Europe Q1/14 Current regional business conditions Q1/14 80 % -40 % -20 % 0 % 20 % 40 % 60 % 80 % 100 % Improving UK/Ireland 60 % Multinationals 40 % Nordic region 20 % Germany 0 % 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 Q1/14 Benelux -20 % All Europe Spain -40 % Italy -60 % Declining France -80 % Current business conditions Quarterly activity year-on-year Declining Improving Source: ERA / IRN Rental Tracker Survey June 2009 – March 2014 (International Rental News/European Rental Association) 7
Cramo’s main markets expected to turn to growth European Rental Association’s rental market estimates for 2014-15 Nominal rental growth estimates for 2014 Nominal rental growth estimates for 2015 6% 6% Cramo countries Cramo countries Nominal rental growth estimate for 2014 Nominal rental growth estimate for 2015 4% 4% 5,5 % 4,8 % 4,5 % 4,3 % 4,0 % 3,7 % 3,7 % 3,6 % 3,6 % 3,5 % 3,0 % 2,8 % 2% 2% 2,7 % 2,5 % 2,3 % 2,3 % 1,9 % 1,8 % 1,7 % 0,3 % 1,9 % 1,7 % 1,6 % 0% 0% -2% -2% -6,5 % -4% -4% -6% -6% -8% -8% UK Germany Norway Poland Finland Sweden Italy Denmark Netherlands Belgium France Spain Poland Finland UK Germany Netherlands Sweden Denmark Norway France Italy Belgium Spain Source: European Rental Association, The European Equipment Rental Industry 2013 Report, October 2013 8
Q1 / 2014 Group performance 9
Cramo quarterly sales development 192,9 200 50% 184,6 182,4 181,6 Highlights 175,1 173,6 180 161,1 161,4 Q1/2014 sales EUR 160,0 160,1 � 40% 140.3m, year-on-year sales 148,5 146,4 160 144,2 growth -5.6% 140,3 Quarterly sales growth % (y-o-y), line graph) Quarterly sales (EUR million, bar graph) 130,4 In local currencies, sales � 140 30% decreased by 1.8%. 114,0 Weakening of SEK and 120 101,4 NOK adversely impacted sales growth 100 20% Q1/14 vs. Q1/13: In Jan-Feb, mild winter � -5.6% (-1.8%*) +0.8%* excl. RUS decreased heating sales in 80 the Nordics, affecting also 10% profitability. On the other 60 hand, in March the mild winter accelerated start of 40 construction projects 0% Excluding restructuring in � 20 Russia, sales increased in local currencies by +0.8% 0 -10% 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 Q1/14 * Change in local currencies Group financial target: Sales growth faster than the market IRN Europe top 50 � 2007: 16%; 2008: 8%; 2009: -20%; 2010: 4%; 2011: 6%; 2012: 6% 10
Cramo quarterly EBITA development 50 25% Highlights Group financial target: 45 20% EBITA margin > 15% Q1/14 EBITA amounted to � EUR 4.4 (6.4) million, or 3.1 40 15% (4.3)% of sales Quarterly EBITA (EUR million, bar graph) − Result was weakened by 32,3 35 10% 31,2 modest demand in Jan-Feb, EBITA % (line graph) 30,5 after which markets picked up in March 30 5% 24,8 Good profitability in FIN and 23,8 � 25 0% 21,9 SWE, improving profitability in NOR, transformation 20 -5% plans still affecting GER 16,5 15,2 14,3 14,3 14,1 For Russian operations incl. � 15 -10% Fortrent, EBITA was EUR 10,6 1.5 million lower than in the 10 -15% previous year in the quarter 6,4 4,4 Cost reductions and 3,8 � 5 -20% 2,5 reorganisation in SWE and 1,5 NOR to ensure positive 0 -25% 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 Q1/14 performance development going forward 11
Cramo EPS performance (diluted) 0,6 Highlights 0,48 0,5 Diluted EPS improved to � 0,43 *** EUR -0.03 (-0.04) 0,38 0,38 ** 0,4 0,34 − Q1 net financial expenses improved to EUR 3.4 (4.0) million * 0,25 0,3 0,24 Quarterly diluted EPS (EUR) − Q1 effective tax rate at the 0,19 same level as year before 0,2 Comparable EPS before � 0,11 0,08 non-recurring items 0,05 0,1 0,04 amounted to EUR -0.03 (0.01) 0,0 Q1/13 EPS included non- � -0,03 -0,04 recurring impairment related -0,1 to formation of Fortrent and reorganisation expenses -0,14 -0,17 related to business -0,2 -0,21 acquisition in Norway -0,3 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 Q1/14 * Q4/2011 includes write-downs on Group goodwill totalling EUR 5.5m ** Q4/2012 includes a number of non-recurring items having a positive net impact of EUR 3.5m on net result, or EPS EUR 0.08 *** Q4/2013 includes a number of non-recurring items having a positive impact of EUR 1.6m on net result, or EPS EUR 0.04 12
Return on Equity 15% Highlights ROE (rolling 12m) continued 8,5 % � 8,3 % 8,0 % 8,0 % 10% 7,5 % 7,3 % to improve in Q1/14 and 7,0 % 6,9 % 6,8 % Group financial target: was 8.5% (6.9%) 5,4 % ROE-% > 12% 5,1 % Efforts continue to reach the � 5% financial target level of 1,9 % > 12% ROE over the cycle -0,2 % ROE % -0,6 % 0% -5% -10,6 % -11,8 % -12,4 % -10% -15% 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 Q1/14 Return on Equity % 13
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