CRAMO PLC INTERIM REPORT 1.1.2015 – 30.9.2015 CEO Vesa Koivula CFO Martti Ala-Härkönen
Contents Highlights of Q3/2015 and market � outlook Interim report Q3/2015 � � Group performance � Business segments Performance improvement actions � and Group strategy implementation driving value creation Appendix � � Additional information 2
Highlights of Q3/2015 Sales growth and profitability improvement continued Sales: Sales growth continued in Q3/2015 y-o-y � � Sales growth 3.0% in local currencies Finland � In local currencies, sales grew by 5.9% in FIN and by 7.3% in SWE � Core rental sales continued to grow y-o-y � Modular space rental sales continued to grow according to target (growth 8.7% in 1-9/2015 y-o-y) Norway Russia Sweden Costs: Estonia Performance improvement actions have had a positive effect � Denmark on the Group’s cost base Latvia Lithuania � In 1-9/2015, indirect costs before non-recurring items decreased Kalinin- grad by EUR 7.9 million y-o-y Belarus � Direct cost ratio (materials and services divided by sales) Poland Germany decreased clearly in Q2 and Q3 of 2015 vs. last year Czech Results: Republic Ukraine Slovakia Comparable EBITA before non-recurring items* improved to � Switzerland Austria Moldova Hungary EUR 31.4 (30.5) million, EBITA margin 18.2% (17.8%) Slovenia Romania � Profitability continued to improved in both Equipment Rental Croatia and Modular Space Bosnia and Serbia Herzegovina Bulgaria Strong cash flow from oper. activities: EUR 53.7 (33.2) million � Number of depots Macedonia 09/2015: 329 Earnings per share* EUR 0.45 (0.45) � Albania Guidance for 2015 unchanged � * EBITA and EPS before EUR 1.2m non-recurring cost related to CEO change 3
Lead indicator: economic sentiment 2008-Q3/2015 125 Conclusions 120 Jan 2011 Economic sentiment � 115 remaining positive and broadly stable in Europe 110 Economic Sentiment Indicator (ESI) – Although recovery has been 105 mixed during 1-9/2015, construction and rental 100 markets are late-cyclical and should benefit from the 95 improved outlook with a certain delay 90 Sentiment above long-term � Long-term 85 average in Sweden and average Germany 80 Sentiment in Poland and � 75 Denmark slightly below long-term average 70 Mar 2009 Finland still stagnated below � 65 the long-term average 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 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Finland Sweden Germany Denmark Poland Europe Source: European Commission, September 2015
Lead indicator: construction confidence 2008-Q3/15 Cramo’s main markets performing well 60 Feb 2011 Conclusions After several years of � 40 decline, total Europe construction confidence currently at long-term Construction Confidence Indicator (mean-adjusted) average level 20 Construction confidence on � a high level in Sweden and Germany 0 Recent development for � Finland is promising � new investments supporting -20 Long-term construction sector average Poland still above long-term � -40 average, while Denmark somewhat below average 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 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Finland Sweden Germany Denmark Poland Europe Source: European Commission, September 2015
Construction growth estimates 2015-17 In 2015 markets still mixed, generally positive outlook over 2016-17 Construction output (% change 2014 2015F 2016F 2017O in real terms) -0,4% 0,0% 2,9% Finland 2,1% (-3,7%) (-1,0%) (+2,0%) 6,8% 5,0% 1,0% Sweden 0,6% (+15,0%) (+8,0%) (+3,0%) Norway 1,9% 2,6% 2,1% 2,2% 2,5% 1,2% 2,7% Denmark 3,3% (2,7%) (3,5%) (0,3%) Baltics 5,0% -3,0% 4,0% 4,0% Poland 5,2% 9,7% 7,8% 8,2% Czech Republic 4,3% 4,3% 4,4% 5,2% Slovakia -3,9% 2,1% 1,6% 1,0% Germany 2,8% 0,9% 0,9% 0,0% Austria 0,4% 0,5% 1,0% 1,5% Russia* -4,0% -6,0% 1,0% 4,0% Sources: Euroconstruct, June 2015 and Forecon, June 2015 * For Russia, 2014 is still Forecast Country-specific data in brackets includes: Finland - Rakennusteollisuus RT (October 2015); Sweden - Sveriges Byggindustrier (October 2015); Denmark - Dansk Byggeri (September 2015) 6
Strengthening rental outlook 2015-16 6% Highlights Generally strengthening � 5% rental outlook in Cramo countries over 2015-16 Nominal rental growth estimates 2.7% 4% ERA expects all Cramo � Weighted countries to turn to rental average 2.2% growth in 2015 growth 0.8%* 3% In 2015, highest growth � estimated in Poland and 2% Denmark Highest gains in rental � 1% volume over 2015-16 expected to be seen in Poland, Denmark and 0% Finland 2014 2015F 2016F -1% -2% Finland Sweden Norway Denmark Germany Poland Source: European Rental Association, The European Equipment Rental Industry 2014 Report, October 2014 and Revised by Statistic Committee June Presentation * Weighted by Cramo’s 2014 total sales in the countries in question 7
Q3 / 2015 Group performance 8
Cramo quarterly sales development 192,9 Highlights 200 50% 184,6 182,4 181,6 180,6 175,1 173,6 172,4 171,1 Q3/2015 sales EUR 172.4m, � 180 161,1 161,4 161,3 y-o-y sales growth +0.7% 160,1 160,0 159,8 40% (+3.0% in local currencies) 148,5 160 147,1 144,2 140,3 − Weaker SEK and NOK cont. Quarterly sales growth % (y-o-y), line graph) Quarterly sales (EUR million, bar graph) to impact sales growth 140 30% − Rental sales continued to grow y-o-y 120 In local currencies, sales � Q3/15 vs. Q3/14: grew by 5.9% in Finland, by 100 20% +0.7% (+3.0%*) 7.3% in Sweden and by 3.9% 1-9/15 vs. 1-9/14: in Eastern Europe +2.0% (+4.6%*) 80 − Sales decreased in Norway, 10% Denmark and Central Europe, 60 where operations have been restructured 40 0% 1-9/2015 sales EUR 480.7m, � y-on-y sales growth +2.0% 20 (+4.6% in local curr.) 0 -10% − Sales in modular space grew 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 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 by 7.4% in local currencies * Change in local currencies Group financial target: Sales growth faster than the market 9
Cramo quarterly EBITA development 50 25% Highlights Group financial target: EBITA margin > 15% 45 20% Q3/15 EBITA before non- � recurring items improved to EUR 31.4 (30.5) million, or 40 15% Quarterly EBITA (EUR million, bar graph) 18.2% (17.8%) of sales 32,3 35 10% − Non-recurring cost of EUR 31,4 31,2 EBITA % (line graph) 30,5 30,5 1.2m related to CEO chane 30 5% − Direct cost ratio continued to improve in Q3/15 24,8 23,8 23,0 25 0% 21,9 In Q3/15, all business � segments except Norway 18,4 20 -5% and Eastern Europe 16,5 improved profitability 14,3 14,3 12,5 15 -10% − Strong improvement in 10,6 10,1 Finland in still weakish market 10 -15% − In Sweden, performance 6,4 improvement actions taken, 4,4 which are expected to bring 5 -20% 2,5 results going forward − Denmark and Central Europe 0 -25% 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 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 continued to improve 10
EBITA bridge 1-9/2014 � 1-9/2015 by segments Absolute EBITA and EBITA margin improved in all segments Highlights Improving Performance improvement markets in PL, 1-9/15 EBITA before NRI* � actions and tight cost control CZ and SLO bearing fruit. In SWE market contributing to EUR 59.9 (47.3) million, or remained good performance 12.5% (10.0%) of sales 65,0 Performance improvement � -0,6 0,7 actions and tight cost 2,4 FIN imp- 60,0 control have contributed roving in still 2,2 Cumulative EBITA (EUR million) 59,9 weak market on the results 1,1 4,8 55,0 − Comparable indirect costs Growth in before NRI decreased by expenses 1,8 50,0 associated EUR 7.9m in 1-9/2015 vs. LY with share- − Direct cost ratio continued to based 47,3 45,0 payments improve in Q3/15 In 1-9/15, profitability � 40,0 improved in all business segments and product 10.0% 12.5% 35,0 of of areas sales sales Long-term strategic focus in � 30,0 modular space bearing fruit Group 1-9/2014 Finland Sweden Norway Denmark Central Europe Eastern Europe Non-allocared Group 1-9/2015 and elim. * EBITA before EUR 1.2m non-recurring cost related to CEO change 11
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