CRAMO GROUP PRESENTATION 2016 (UPDATED) SHAPE & SHARE
STRONG RENTAL POSITION #2 #1 #2 Finland Russia Norway in Europe in the Nordics (MS) Estonia in Europe Sweden 300 14 324 Lithuania Denmark countries depots depots Poland Germany Ukraine Czech Rep. Slovakia 230,000 150,000 Hungary Austria rental units customers Cramo Fortrent
CRAMO GROUP IN NUMBERS 2016 ▪ Cramo is a rental solutions provider What in machinery, equipment and modular space ▪ ▪ Construction Public sector For whom ▪ industry Household, ▪ Other industry other ▪ Sales 712 MEUR (+6.6%) ▪ EBITA 111 MEUR (+30.6%) Key financials ▪ Listed on the Helsinki Stock Exchange since 1988, midcap Depot network ▪ ▪ 300 depots 14 countries Personnel ▪ 2,550, average 2016 (+2.6%) Fleet ▪ More than 230.000 items
CRAMO GROUP TODAY ▪ Cramo is one of the largest equipment rental service companies in Europe, with operations in 14 countries and 2016 sales of EUR 712 million and EBITA EUR 111 million. The company operates under the Cramo brand in Nordic and Baltic countries, ▪ Germany, Austria, Hungary, Poland, the Czech Republic and Slovakia. In Russia and Ukraine under the brand of Fortrent (50% owned JV). The Modular Space business is marketed under the sub-brand Cramo Adapteo . ▪ Cramo is the #1 player in both construction and non-construction modular space in the Nordic countries. ▪ Cramo is also #2 in the Equipment rental segment in Europe and #1-3 in all markets of operation. 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 2,500 employees serve over 150,000 customers .
SALES BY BUSINESS SEGMENT 2016 Easter Europe 7% Finland 18% Central Europe 11% Denmark 5% Norway 10% Sweden 49% EUR 680 million
FINANCIAL TARGETS CRAMO GROUP 2017-20 EQUIPMENT RENTAL MODULAR SPACE ▪ Organic sales growth > market ▪ Double digit organic sales growth ▪ ROCE > 14.5% ▪ ROCE > 12.5% GROUP ▪ Net Debt / EBITDA < 3x ▪ ROE > 15 % ▪ DIVIDEND PAYOUT RATION ~40 % * Financial targets: on average during 2017- 2020 * ROCE = EBIT / capital employed (average)
NEW SEGMENT STRUCTURE ER Finland ER Scandinavia ER Central Europe Modular Space and Eastern Europe Net sales Net sales Net sales Net sales (mEUR) (mEUR) (mEUR) (mEUR) 379 139 79 118 Finland Finland EBITA EBITA EBITA EBITA Norway Norway (margin-%) (margin-%) (margin-%) (margin-%) Estonia Estonia Sweden Sweden 65 22 4 31 (17%) (16%) (5%) (26%) Lithuania Lithuania Denmark ROCE ROCE ROCE ROCE Poland Poland Germany Germany Czech Rep. Czech Rep. 17% 12% 4% 11% Slovakia Slovakia Hungary Hungary Austria Austria
TWO STRONG BUSINESS DIVISIONS EQUIPMENT MODULAR RENTAL SPACE
SALES BY PRODUCT GROUP AND # OF UNITS Rental-related services and other 20% Tools 27 % Tools (158,000) Access equipment (14,000) Site huts 10% Construction Equipment 10% Modular Space 15 % Access Equipment 16 % Construction equipment Modular space (22,000) (6,100) Site huts (32,000)
SALES BY SERVICE AREAS Other 4% Households 2% Public sector 16% Construction industry 55% Other industries 23% More than 150,000 customers
STRATEGY: SHAPE & SHARE Vision VALUE ADDED What do we want to be? SHARED RESOURCES SIMPLIFIED Mission OUR MISSION What do we want to accomplish? Create great days at work and room for great days Purpose Why do we exist? OUR PURPOSE Driving the sharing economy Strategy Our plan to reach vision, OUR STRATEGY mission and purpose Shape and Share People and performance Game-changing offerings Focus areas Stretch and scale up business models Capture potential in our markets How we drive our strategy FOCUS AREAS Values Enable people to perform Shape the future Our common platform and foundation Modular space Equipment rental More than 150,000 customers Secure resources & Offerings & delivery platform German market Operational excellence VALUES Credibility Creativity Commitment
STRATEGY: SHAPE & SHARE We shape our • Industry We will capture the potential in our markets • Offerings • Organisation • We enable Cramo people to • Attitudes achieve top performance • We significantly stretch our core business models We share • We rapidly grow Modular Space • Resources in chosen European markets • Best Practices • We establish game changing offerings • Ideas in sharing resources • Values
THE ROADMAP IS CLEAR Growth Building a new footprint in chosen markets Targeting organic growth Evaluating potential acquisitions target companies Optimize Shaping the business structure and model Enhancing the performance culture Creating a digital concept Align Implementing common processes and tools Living the Cramo Story Operational efficiency
KEY FOCUS AREAS Secure resources in Modular Space Enable people Game-changing Stretch business to perform offerings models Capture potential in Germany
FOCUS AREA: ENABLE PEOPLE TO PERFORM Develop Root People to Performance Perform Culture 1 2 Drive Roll-out Cramo Story Cramo Care 3 4 More than 150,000 customers
MEGATRENDS AND RENTAL GROWTH DRIVERS EQUIPMENT MODULAR SPACE MEGATRENDS GROWTH DRIVERS RENTAL DRIVERS Outsourcing - Increasing rental penetration Economic benefits, Dynamic, changing environment Growth in new services and Accelerating technological change in mindset creates demand solutions development Migration Growth in rental- Globalisation Urbanisation Greater preference Site-specific space needs related services Digitalisation Growth of rental and modular Ageing for total solutions during renovation periods space in new sectors Global and local demographic changes Need to improve Fluctuating space needs: productivity daycares, schools, Sustainability Increasing rental penetration, accommodation Environmental and Switch from manpower outsourcing More stringent environmental Quality problems climate awareness to machine laws and international (mold and moisture) End users increasingly require Increased energy agreements to mitigate Internet of things, intelligent in construction permanent-like quality efficiency climate change life-cycle follow-up requirements Ageing of buildings Need for energy-efficient solutions Growth in renovation Multichannel connectivity with construction in mature customers construction markets SOCIETY PUBLIC SECTOR CONSTRUCTION OTHER INDUSTRIES
DIGITALIZATION AND THE FUTURE OF RENTAL Cramo Innovation Race The Innovation Team The fleet is becoming more digital More than 150,000 customers ”Smart” tools Innovations & New Business Director Digital Transformation Team Tomi Sundberg
DIGITAL VISION AND MISSION Vision Digital change leaders Mission Easy accessible, always open channels that adds value Shapers, not followers!
Cramo eCOMMERCE SOLUTION Easy Easy to find access products Efficient portal for Detailed product account and rental data management Easy to make Accurate availability transactions information
SUSTAINABILITY EMBEDDED IN OUR STRATEGY COMMITMENT AND PRINCIPLES Code of Conduct and Business Ethics UN Global Compact Supplier Code of Conduct ISO STRATEGIC DRIVERS CUSTOMER CARE EMPLOYEE CARE VALUE ADDED • Driving the sharing • Customer satisfaction • Employee satisfaction • Growth • Health and safety • Health and safety • Risk management economy • Shaping the industry • Resource efficiency • Skills development • Return on capital • Stakeholder expectations • Business ethics • Diversity and equality • Skilled, committed • Responsible suppliers for more sustainable employees • Innovative corporate culture operations • Resource and operational • Competitive edge ENVIRONMENTAL CARE SOCIAL CARE efficiency • Resource efficiency • Local engagement • Changing the operating • Reduced environmental • Business ethics environment • Increased transparency footprint • Increased circularity and more stringent ethics
CRAMO CARE CUSTOMER CARE EMPLOYEE CARE • Customer satisfaction • Employee satisfaction • Health and safety • Health and safety • Resource efficiency • Skills development • Business ethics • Diversity and equality • Responsible suppliers SUSTAINABILITY Growth Risk management Return on capital ENVIRONMENTAL CARE SOCIAL CARE • Resource efficiency • Local engagement • Reduced environmental • Business ethics footprint • Increased circularity
ALWAYS PUTTING OUR CUSTOMERS FIRST WE ARE ALWAYS HELPFUL #1 Every Cramo country has its own ombudsman. The ombudsman is a neutral authority who is willing and able to resolve and causes of dissatisfaction. Their job is to make our customers happy and help us to improve. WE ARE ALWAYS ON TIME #2 We understand your needs and timetables so well that every delay is too much. One minute late or one hose short, we’ll take responsibility – just to keep our service standards at least as high as your expectations . OUR EQUIPMENT NEVER FAILS #3 High-quality equipment is the very core of our business. When equipment needs to be fixed or replaced, we’ll do it faster than you could imagine .
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