H1 2017 PRESENTATION 26 th OF JULY, 2017 Leif Gustafsson, CEO Aku - PowerPoint PPT Presentation

H1 2017 PRESENTATION 26 th OF JULY, 2017 Leif Gustafsson, CEO Aku Rumpunen, CFO

Q2 2017 Highlights • Comparable EBITA EUR 27.8m (26.6) with margin of 15.6% (14.9%) • Good performance continued in Equipment rental • Comparable ROE 16.6% (13.3%) • Acquisition of Just Pavillion A/S modular space assets in Denmark • After the period divestment of Danish Equipment rental operations

FINANCIAL TARGET REALISATION EQUIPMENT RENTAL 1-6/2017 MODULAR SPACE 1-6/2017 Organic sales Comparable ROCE, % Organic rental Comparable ROCE, % growth, % sales growth, % +3.0 14.9 (10.9) +7.0 9.8 (12.3) EQUIPMENT RENTAL MODULAR SPACE Organic sales growth > Markets *) Double digit organic rental sales growth ROCE, % > 14.5 ROCE, % > 12.5 *) According to ERA (European Rental Association) in the markets where Cramo is present.

BUSINESS SEGMENTS

EQUIPMENT RENTAL: SCANDINAVIA PROFITABILITY IMPROVEMENT CONTINUED MEUR 4-6/17 4-6/16 Change-% 1-6/17 1-6/16 Change-% 2016 Sales 92.9 97.1 -4.3 % 185.1 182.8 1.3 % 378.8 3.4%* -0.8%* EBITA 16.4 16.0 2.8 % 32.2 26.8 20.2 % 60.9 % of sales 17.7 % 16.5 % 17.4 % 14.6 % 16.1 % Norway Sweden Comparable EBITA 16.4 16.0 2.8 % 32.2 26.8 20.2 % 64.5 % of sales 17.7 % 16.5 % 17.4 % 14.6 % 17.0 % Denmark ROCE 16.8 % 14.0 % 15.6 % Comparable ROCE 17.8 % 14.0 % 16.6 % • In Sweden, sales growth was flat in local currencies, while in Norway and Denmark sales decreased during the second quarter. The timing of Easter affected negatively on the sales growth against last year. ER Scandinavia has operations • Sales were also materially impacted by weaker local currencies. in three countries with capital • Profitability and ROCE improvement continued. employed over MEUR 381 in • In Sweden market is very active. The growth is expected to level out. the end of Q2 2017. * in local currencies

EQUIPMENT RENTAL: FINLAND AND EASTERN EUROPE STRONG PROFITABILITY IMPROVEMENT IN THE FIRST HALF OF THE YEAR MEUR 4-6/17 4-6/16 Change-% 1-6/17 1-6/16 Change-% 2016 Sales 34.7 34.4 0.8 % 65.3 62.5 4.1%* 4.5 % 138.6 Finland EBITA 5.4 5.1 4.9 % 7.6 4.6 63.0 % 21.7 Estonia % of sales 15.6 % 14.9 % 11.6 % 7.4 % 15.6 % Comparable EBITA 5.4 5.1 4.9 % 7.6 4.6 63.0 % 22.3 Latvia Lithuania % of sales 15.6 % 14.9 % 11.6 % 7.4 % 16.1 % ROCE 12.4 % 9.0 % 10.8 % Poland Comparable ROCE 13.5 % 9.0 % 12.0 % • In Finland, the sales development was moderate due to tightening competition and timing of project deliveries. Second quarter sales were also negatively affected by ER Finland and Eastern Europe the timing of Easter against last year. has operations in seven • In Estonia the demand and performance improved strongly, in Lithuania demand is countries with capital employed at a good level while in Latvia and Poland, the market situation is improving. over MEUR 180 in the end of • Profitability improved mainly as a result of increased sales and gross margin Q2 2017. * in local currencies

EQUIPMENT RENTAL: CENTRAL EUROPE SALES GREW AND PROFITABILITY IMPROVED MEUR 4-6/17 4-6/16 Change-% 1-6/17 1-6/16 Change-% 2016 Sales 23.5 20.1 16.7 % 38.0 33.9 12.1 % 77.9 EBITA 2.4 1.8 31.5 % -0.2 -1.6 3.8 % of sales 10.1 % 8.9 % -0.5 % -4.7 % 4.9 % Comparable EBITA 2.4 1.8 31.5 % -0.2 -1.6 3.8 % of sales 10.1 % 8.9 % -0.5 % -4.7 % 4.9 % ROCE 5.6 % -0.2 % 4.0 % Comparable ROCE 5.6 % 0.7 % 4.0 % Germany • Czech In Germany sales growth was 8.6%, contributed strongly by trading sales. Republic Slovakia • Sales and profitability clearly improved in Austria, Czech Republic and Slovakia. Austria Hungary • The timing of Easter had a negative effect on sales development against last year during the second quarter. ER Central Europe has • ROCE improved materially year on year. operations in five countries with capital employed close to MEUR 91 in the end of Q2 2017. * in local currencies

MODULAR SPACE RENTAL SALES GROWTH CONTINUED, BUT STILL BELOW TARGET LEVEL MEUR 4-6/17 4-6/16 Change-% 1-6/17 1-6/16 Change-% 2016 Rental Sales 20.3 19.1 6.1 % 40.3 37.5 7.4 % 76.4 8.5 %* 9.0 %* Sales 27.1 27.7 -1.9 % 52.8 55.7 -5.2 % 117.6 Sweden EBITA 6.7 7.1 -6.1 % 12.9 15.0 -14.1 % 30.8 Finland % of sales 24.5 % 25.6 % 24.5 % 27.0 % 26.2 % Norway Comparable EBITA 6.7 7.1 -6.1 % 12.9 15.0 -14.1 % 30.8 Estonia % of sales 24.5 % 25.6 % 24.5 % 27.0 % 26.2 % Denmark ROCE 9.8 % 12.3 % 11.1 % Latvia Lithuania Comparable ROCE 9.8 % 12.3 % 11.1 % Germany • Total sales were negatively affected by a lower amount of rental related sales compared to the previous year. • Rental sales growth was below our expectations especially in Finland • In the first half, the profitability was negatively affected by cost overruns in Finland. Modular space has operations Actions taken to improve operative processes continued. In addition, on a in eight countries with capital segment-level, measures taken to support further growth negatively contributed to employed over MEUR 316 in profitability against last year. the end of Q2 2017. * in local currencies

SHAPING DANISH OPERATIONS Acquisition of Just Pavillion’s assets Modular space Equipment rental: • Scope of deal: modular space rental fleet, customer Scandinavia contracts and other assets • During 2016, sales EUR 3.6 million. No material impact to Group sales or earnings in 2017. • High quality product range: 360 units mainly used in the school and office segments. Sweden • Supports strategy and financial target realisation Finland Norway Norway Divestment of Equipment rental Denmark Sweden Estonia • Cramo divests Danish Equipment rental operations to Denmark Denmark Latvia Loxam A/S. Lithuania • In 2016, sales of Danish Equipment rental operations amounted to EUR 20 million and comparable EBITA was Germany EUR 0.6 million. • Cramo has 80 employees and seven depots in Denmark within Equipment rental.

GROUP PERFORMANCE Q2 2017

SALES DEVELOPMENT Rolling 12 months Quarters 740 8% 200 14% 193 187 185 179 7% 178 180 720 719 172 720 12% 163 712 161 R12M sales (EUR million) R12M sales growth (%, y-o-y) 160 155 6% 707 Sales growth (%, y-o-y) 147 10% Sales (EUR million) 700 140 694 5% 8% 120 680 4% 676 100 6% 668 80 3% 661 660 4% 659 660 R12M 4-6/17 vs. 60 R12M 4-6/16: 2% +3.5% 2% 40 640 4-6/17 vs. 4-6/16: 1% 0% -0.6% (+1.5%*) 20 620 0% 0 -2% Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 * Change in local currencies

COMPARABLE EBITA DEVELOPMENT Quarters Rolling 12 months 4-6/17 vs. 4-6/16: R12M 4-6/17 vs. +4.3% R12M 4-6/16: +21.5% * Change in local currencies

DEVELOPMENT IN COST BASE QUARTERLY INDIRECT COST 2 QUARTERLY DIRECT COST 1 50% 400 50% 400 42.1 % 41.0 % 40.5 % 45% 45% 350 350 44.1 % 34.9 % 40% 40% 34.1 % 42.5 % 41.9 % 300 300 40.2 % 31.7 % 39.7 % 39.3 % 35% 35% Direct cost (EUR million) Indirect cost (EUR million) 35.3 % 35.3 % 34.4 % 250 250 33.1 % 30% 30% Direct cost ratio Indirect cost ratio 31.9 % 31.5 % 25% 200 25% 200 20% 20% 150 150 139.9 15% 15% 135.5 129.7 100 100 114.1 108.2 107.5 10% 10% 70.7 70.4 69.2 50 50 64.9 64.8 65.1 59.3 5% 5% 56.9 55.5 54.8 52.0 51.4 0% 0 0% 0 2015 2016 2017 2015 2016 2017 2015 2016 2017 2015 2016 2017 2015 2016 2017 2015 2016 2017 Jan-Jun . Q2 . Q1 Jan-Jun . Q2 . Q1 Direct cost (right axis) Direct cost ratio (left axis) Indirect cost (right axis) Indirect cost ratio (left axis) * Comparison before IACs 1 Direct cost refers to income statement line ”Materials and services” 2 Indirect cost refers to income statement lines ”Employee benefit expenses” and ”Other operating expenses”

COMPARABLE EBITA BRIDGE Q2 Y-O-Y 14.9% of 15.6% of 14.9% of sales sales sales

COMPARABLE EBITA BRIDGE H1 Y-O-Y 11.8% of 13.9% of 11.8% of sales sales sales

COMPARABLE EPS PERFORMANCE 2.00 2.00 1.80 1.80 1.85 quarterly EPS (EUR, bar graph) 1.60 1.60 EPS R12M (EUR, line graph) 1.40 1.40 1.41 1.20 1.20 1.00 1.00 1.15 0.80 0.80 0.64 0.60 0.60 0.51 0.45 0.42 0.40 0.39 0.40 0.40 0.28 0.23 0.16 0.20 0.20 0.09 0.00 0.00 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17

OPERATING CASH FLOW AND CASH FLOW AFTER INVESTMENTS 73.5 Cash flow after investment (EUR million , line graph) 70 70 58.2 Operating cash flow (EUR million, bar graph) 53.0 51.2 50 50 44.9 42.3 39.3 30 30 27.1 23.6 15.5 10 10 3.5 -14.0 -10 -10 Acquisition of Acquisition of Just -5.2 Parviainen in Pavillon modular Finland space assets in Denmark -30 -30 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17

COMPARABLE ROE AND NET DEBT TO EBITDA 3.50 3.00 2.50 Net debt / EBITDA 2.32 2.00 2.03 1.86 1.50 1.00 0.50 0.00 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Net debt / EBITDA Target < 3.00 2017-20

CONCLUSION AND OUTLOOK 2017