CRAMO PLC INTERIM REPORT CEO Vesa Koivula CFO Martti Ala-Härkönen

Transcription

1 CRAMO PLC INTERIM REPORT CEO Vesa Koivula CFO Martti Ala-Härkönen

2 Contents Highlights of Q2/2015 and market outlook Interim report Q2/2015 Group performance Business segments Performance improvement actions and Group strategy implementation driving value creation Appendix Additional information 2

3 Highlights of Q2/2015 Continued sales growth, profitability improved in all markets Sales: Sales growth continued in Q2/2015 y-o-y Sales growth was 2.8% in local currencies In local currencies, sales grew by 5.8% in FIN and by 5.6% in SWE With regard to sales mix, the growth rate of core rental sales strengthened in Q2/15 vs. Q1/15 Costs: The performance improvement actions carried out in 2014 had a positive effect on the Group s cost base In Q2/2015, fixed costs decreased by EUR 4.2 million y-o-y In 2015, Cramo continues performance improvement actions especially with regard to direct costs (materials and services) Results: Strong improvement in profitability: EBITA EUR 18.4 (12.5) million, growth 47.2%, EBITA margin 11.4% (7.8%) Profitability improved in all business segments and product areas Strong cash flow from oper. activities: EUR 55.5 (29.2) million Earnings per share* EUR 0.23 (0.11) Guidance for 2015 unchanged Denmark Switzerland Norway Germany Slovenia Croatia Bosnia and Herzegovina Czech Republic Austria Sweden Macedonia Albania Kaliningrad Poland Slovakia Hungary Serbia Finland Estonia Latvia Lithuania Romania Bulgaria Belarus Ukraine Moldova Russia Number of depots 06/2015: 329 * EPS diluted 3

4 Lead indicator: economic sentiment 2008-Q2/15 Economic Sentiment Indicator (ESI) Jan Long-term average Mar 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 Highlights Economic sentiment remaining positive and broadly stable in Europe Recovery generally visible, although somewhat mixed picture during H1/2015 Construction and rental markets are late-cyclical and should benefit from the improved outlook with a certain delay Sentiment above long-term average in Sweden and Germany Sentiment in Poland and Denmark close to long-term average Finland still below long-term average, but small-scale improvement lately Source: European Commission, July

5 Lead indicator: construction confidence 2008-Q2/15 Clear improvement trends in Cramo s main markets 60 Feb 2011 Highlights Construction Confidence Indicator (mean-adjusted) Long-term average -40 Jun 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 While rental is a service business with a number of growth drivers, construction plays an important role Construction confidence in Europe at long-term average Construction confidence on high level in Sweden and Germany, Q2 improvement in Sweden Recent development for Finland promising expectations for better market in H2/15 and 2016 Poland above long-term average. Denmark below average, Q2 improvement Source: European Commission, July

6 Strengthening rental outlook % Highlights 5% Generally strengthening rental outlook in Cramo countries over Nominal rental growth estimates 4% 3% 2% 1% 0% Weighted average growth 0.8%* 2.2% 2.7% F 2016F ERA expects all Cramo countries to turn to rental growth in 2015 In 2015, highest growth estimated in Poland and Denmark Highest gains in rental volume over expected to be seen in Poland, Denmark and Finland -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 6

7 Construction growth estimates In 2015 markets still mixed, generally positive outlook over Construction output (% change in real terms) Finland Sweden Sources: Euroconstruct, June 2015 and Forecon, June 2015 * For Russia, 2014 is still Forecast Country-specific data in brackets includes: Finland - Rakennusteollisuus RT (February 2015); Sweden - Sveriges Byggindustrier (June 2015); Denmark - Dansk Byggeri (February 2015) F 2016F 2017O -0,4% (-3,0%) 6,8% (+12,0%) 0,0% (-0,5%) 5,0% (+8,0%) 2,9% 2,1% 1,0% (+2,0%) 0,6% Norway 1,9% 2,6% 2,1% 2,2% Denmark 2,5% (2,3%) 1,2% (-1,9%) 2,7% (3,2%) 3,3% 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% 7

8 Positive confidence trend in European rental Confidence in Europe s rental sector continued to improve in Q1/15 Nordics the most positive region, Germany remains at good level Current rental activity & conditions in Europe Q1/15 Current regional business conditions Q1/15 Improving 80 % 60 % -60 % -40 % -20 % 0 % 20 % 40 % 60 % 80 % Nordic region 40 % 20 % 0 % -20 % -40 % 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 Q2/14 Q3/14 Q4/14 Q1/15 Multinationals Italy Spain Germany UK/Ireland All Europe -60 % Declining -80 % France Current business conditions Quarterly activity year-on-year Declining Improving Source: ERA / IRN Rental Tracker Survey June 2009 June 2015 (International Rental News/European Rental Association) 8

9 European Rental market still fragmented Cramo was #2 in Europe in 2014 plenty of consolidation potential Rental operators in the European equipment rental market Overall European market ~23.3 BEUR Revenue, MEUR (2014) > 500 MEUR, n=4 > 250 MEUR, n= % 14 % <50 MEUR revenue Top players % Top 5-17 players Loxam Cramo Ramirent Algeco Scotsman Sarens Kiloutou Speedy Hire A-Plant (Ahstead) HSS Hire Zeppelin Rental Liebherr-Mietpartner Mediaco Levage Boels Verhuur Aggreko HKL Baumaschinen VP PLC Lavendon Group plc > 50 MEUR, n= % Total market breakdown (2014 industry rental turnover, BEUR) Top 4 players Source: European Rental Association, The European Equipment Rental Industry 2014 Report, October 2014; ERA Convention, June 2015 and International Rental News, June

10 Q2 / 2015 Group performance 10

11 Cramo quarterly sales development Quarterly sales (EUR million, bar graph) ,2 161,1 181,6 192,9 160,0 161,4 182,4 184,6 148,5 160,1 173,6 175,1 140,3 159,8 171,1 180,6 147,1 Q2/15 vs. Q2/14: +1.0% (+2.8%*) H1/15 vs. H1/14: +2.8% (+5.5%*) 161,3 50% 40% 30% 20% 10% 0% Quarterly sales growth % (y-o-y), line graph) Highlights Q2/15 sales EUR 161.3m, y-on-y sales growth +1.0% (+2.8% in local currencies) Weaker SEK and NOK cont. to impact sales growth Rental sales continued to grow y-o-y, whereas rental-related sales and trading sales slightly decreased. Growth rate in rental sales strengthened in Q2 vs. Q1 In local curr., sales grew by 5.8% in FIN, in SWE by 5.6% and in East. Europe by 3.6% In CE, sales affected by lower trading sales, in NOR and DEN by FY 2014 restructurings % H1/15 sales EUR 308.4m, y-on-y sales growth +2.8% (+5.5% in local currencies) 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 * Change in local currencies Group financial target: Sales growth faster than the market 11

12 Cramo quarterly EBITA development 50 25% Highlights Group financial target: EBITA margin > 15% 20% 15% Q2/15 EBITA amounted to EUR 18.4 (12.5) million, an improvement of EUR 5.9m Quarterly EBITA (EUR million, bar graph) ,5 Q1/11 14,3 Q2/11 30,5 Q3/11 23,8 Q4/11 10,6 Q1/12 14,3 Q2/12 31,2 Q3/12 21,9 Q4/12 6,4 Q1/13 16,5 Q2/13 32,3 Q3/13 24,8 Q4/13 4,4 Q1/14 12,5 Q2/14 30,5 Q3/14 23,0 Q4/14 10,1 Q1/15 18,4 Q2/15 10% 5% 0% -5% -10% -15% -20% -25% EBITA % (line graph) EBITA margin 11.4% (7.8%) Fixed costs continued to reduce in Q2/15 All business / product segments impr. profitability Strong performance especially in Finland, Sweden, Norway and Eastern Europe Profitability improving also in Denmark and Central Europe By product area, both Equipment rental and Modular space improving profitability H1/15 EBITA amounted to EUR 28.5 (16.8) million, or 9.2% (5.6%) of sales 12

13 EBITA bridge H1/2014 H2/2015 by segments Absolute EBITA and EBITA margin improved in all segments Highlights Performance improvement actions and tight cost control bearing fruit. Also clearly improved market in SWE Markets starting to improve in PL, CZ and SLO Absolute EBITA and EBITA margin improving both in H1 and Q2 vs. LY in all business segments Cumulative EBITA (EUR million) 30,0 25,0 20,0 15,0 10,0 5,0 0,0 16,8 5.6% of sales FIN improving in still weak market 0,8 4,0 1,5 1,9 1,4 0,9 Group H Finland Sweden Norway Denmark Central Europe Eastern Europe Non-allocated and elim. 1,2 28,5 9.2% of sales Group H Performance improvement actions and tight cost control have contributed on the results Particularly good improvement in Finland and Norway in a tough market environment Operational leverage starting to materialise in several OpCos as markets gradually improve Long-term strategic focus in Modular space bearing fruit 13

14 Cramo EPS performance (diluted) 0,6 Highlights 0,5 0,43 0,48 *** 0,45 Q2/15 EPS improved to EUR 0.23 (0.11) Quarterly diluted EPS (EUR) 0,4 0,3 0,2 0,1 0,08 0,38 * 0,25 0,04 0,11 0,34 0,19 0,38 0,11 0,37 0,09 0,23 0,0-0,1-0,04-0,03-0,2-0,17-0,17-0,3 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 ** No non-recurring items in Q2 Q2/15 net financial expenses EUR 3.2 (3.4) million, EUR 0.2 million below last year H1/15 effective tax rate 21.0% * 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 EPS impact of Q4/2014 non-recurring items amounted to EUR

15 Return on Equity 15% Highlights ROE % 13% 11% 9% 7% 5% Group financial target: ROE-% > 12% 5,1 % 5,4 % 7,3 % 6,8 % 7,0 % 7,5 % 6,9 % 8,0 % 8,0 % 8,3 % 8,5 % 8,7 % 8,2 % 8,3 % 3,4 % 9,6 % 4,5 % 10,8 % 5,7 % Comparable ROE before the effect of NRIs (rolling 12m) 10.8% Excluding year-end 2014 nonrecurring restructuring expenses of EUR 2.9m and EUR 25.5m non-recurring impairment on goodwill and intangible assets in CE Efforts continue to reach the financial target level of > 12% ROE over the cycle 3% 1% -1% -0,2 % Q1/11 1,9 % Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Return on Equity % Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 In 2015, performance improvement actions especially with regard to direct costs (materials and services) Further implementation of must-win battles ROE after NRIs (rolling 12m) 5.7% Return on equity (R12m) before non-recurring items totalled 10.8% in Q2/

16 Quarterly cash flow 80 Highlights 60 55,5 Cash flows improving clearly both in Q2/15 and H1/15 vs. LY 40 Q2/15: Quarterly cash flow (EUR m) Q1/11 Q2/11 Q3/11 Q4/11 Acquisition of Tidermans in Sweden and Stavdal in Norway Acquisition of Theisen Group Q1/12 Q2/12 Q3/12 Q4/12 Cash flow from operations Formation of Fortrent, acquisitions in Norway Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Cash flow after investments 29,2-10,6 Acquisition of Optirent in Finland and C/S RaumCenter in Germany Q2/14 Q3/14 Q4/14 Q1/15 15,5 Acquisition of Vuokra-Pekat Oy and Visby Hyrmaskiner Q2/15 Cash flow from operations EUR 55.5m (29.2m) Cash flow after investments EUR 15.5m (-10.6m) Gross CapEx was EUR 46.1m (53.1m), including EUR 0.0m (11.3m) for acquisitions H1/15: Cash flow from operations EUR 57.9m (37.3m) Cash flow after investments EUR -12.4m (-21.4m) Gross CapEx was EUR 87.6m (80.4m), including EUR 8.6m (11.3m) for acquisitions 16

17 Q2 / 2015 Business segments 17

18 Finland Sales growth and improved profitability Key figures 4-6/ 4-6/ Change 1-6/ 1-6/ Change 1-12/ % % 2014 Sales ( m) 26,6 25,1 5,8 % 50,6 47,8 5,8 % 104,2 EBITA ( m) 5,4 4,7 15,1 % 8,3 7,5 10,8 % 20,4 EBITA-% 20,4 % 18,7 % 16,4 % 15,7 % 19,6 % No of personnel (FTE) ,2 % 428 No of depots ,0 % 53 Rolling 12-month sales and EBITA-% Highlights Quarterly sales (Rolling 12 months, EUR m) ,0 % 13,5 % 14,0 % 15,9 % 16,3 % 16,6 % 17,4 % 18,6 % 19,1 % Q1/2011 Q2/2011 Q3/2011 Q4/2011 Q1/2012 Q2/2012 Q3/2012 Q4/2012 Q1/ ,2 % 18,8 % Q2/2013 Q3/ ,8 % Q4/ ,4 % 20,4 % Q1/2014 Q2/ ,5 % Q3/ ,6 % 19,5 % Q4/2014 Q1/ ,9 % 107,0 Q2/ % 20% 15% 10% 5% 0% Quarterly rolling 12-month EBITA margin In Q2/15, sales grew by 5.8% year-on-year Sales grew despite overall market situation being weak Good sales performance was contributed by brisk demand in renovation and the acquisition of Vuokra- Pekat Oy in February. Also, the demand for rentalrelated services remained reasonably good in industries other than the construction sector Demand for modular space continued to be strong especially in the public sector Profitability improved, EBITA EUR 5.4 (4.7) million in Q2, margin 20.4% (18.7%) Strong result in the modular space business Gradually improving construction market estimated for H2/15 Sales (R12m) EBITA-% (R12m) 18

19 Sweden Sales growth and improved profitability 4-6/ 4-6/ Change 1-6/ 1-6/ Change 1-12/ Key figures %* % %* +8.7%* % 2014 Sales ( m) 78,9 76,8 2,7 % 152,9 146,7 4,2 % 312,7 EBITA ( m) 12,4 11,6 7,4 % 24,7 20,7 19,2 % 55,6 EBITA-% 15,8 % 15,1 % 16,1 % 14,1 % 17,8 % No of personnel (FTE) ,1 % 806 No of depots ,4 % 102 Rolling 12-month sales and EBITA-% Highlights Quarterly sales (Rolling 12 months, EUR m) ,8 % 17,8 % 18,6 % 18,8 % 19,3 % 18,5 % 18,3 % 17,9 % 17,2 % 17,3 % 17,9 % 17,5 % 17,4 % 17,3 % 16,9 % 17,8 % 18,5 % Q1/2011 Q2/2011 Q3/2011 Q4/2011 Q1/2012 Q2/2012 Q3/2012 Q4/2012 Q1/2013 Q2/2013 Q3/2013 Q4/2013 Q1/2014 Q2/2014 Q3/2014 Q4/2014 Q1/2015 Sales (R12m) EBITA-% (R12m) 18,7 % 318,9 Q2/ % 20% 15% 10% 5% 0% Quarterly rolling 12-month EBITA margin In Q2, Sales increased by 2.7% (+5.6% in loc.). In H1/15, sales grew by 8.7% in local currency In Q2, profitability improved y-o-y with EBITA at EUR 12.4m (11.6m) Performance improvement actions carried out in 2014 Result within equipment rental improved acc. to target, whereas result within modular space declined somewhat Depreciations higher due to increased investments in Q2. Within modular space, also high assembly costs as well as bad debt provisioning on the Pajala project Further focus on Cramo Story, dynamic pricing and performance improvement actions on direct costs According to market estimates, residential construction will keep on growing and construction activity increasing especially in large cities * Change in local currencies 19

20 Norway Strong profitability improvement in Q2, restructuring actions bearing fruit 4-6/ 4-6/ Change 1-6/ 1-6/ Change 1-12/ Key figures %* % %* % 2014 Sales ( m) 18,2 19,4-6,4 % 36,8 39,7-7,3 % 82,5 EBITA ( m) 1,4-0,1 3,0 1,5 98,7 % 4,5 EBITA-% 7,8 % -0,3 % 8,2 % 3,8 % 5,4 % No of personnel (FTE) ,7 % 235 No of depots ,4 % 28 Rolling 12-month sales and EBITA-% Highlights Quarterly sales (Rolling 12 months, EUR m) ,1 % 0,0 % 0,9 % 1,1 % 1,7 % Q1/2011 Q2/2011 Q3/2011 Q4/2011 Q1/2012 3,9 % Q2/2012 5,0 % 6,3 % Q3/2012 Q4/2012 6,1 % Q1/2013 6,8 % 6,9 % Q2/2013 Q3/2013 7,3 % Q4/2013 8,2 % 6,7 % Q1/2014 Q2/2014 5,9 % Q3/2014 5,4 % 5,5 % Q4/2014 Q1/2015 7,5 % 79,6 Q2/2015 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% -1% Quarterly rolling 12-month EBITA margin In Q2, sales decreased by 6.4% year-on-year (-2.3% in local currency) The decrease in sales affected by the reduction of depot network and other restructuring measures in 2014 In addition, low investment activity in the energy sector negatively reflecting to the construction market Q2 EBITA was EUR 1.4m (-0.1m), or 7.8% (-0.3%) of sales Performance improvement actions carried out in 2014 improved profitability Actions to improve operational efficiency have continued in 2015 Market institutions estimate moderate growth for construction and rental market in 2015 Sales (R12m) EBITA-% (R12m) * Change in local currencies 20

21 Denmark Profitability clearly improved, focus actions bearing fruit Key figures 4-6/ 4-6/ Change 1-6/ 1-6/ Change 1-12/ % % 2014 Sales ( m) 6,3 7,5-15,5 % 12,8 14,1-9,2 % 29,5 EBITA ( m) 0,1-0,6 0,5-1,4-3,4 EBITA-% 1,0 % -7,7 % 3,9 % -9,7 % -11,4 % No of personnel (FTE) ,3 % 118 No of depots ,3 % 8 Rolling 12-month sales and EBITA-% Highlights Quarterly sales (Rolling 12 months, EUR m) ,5 % -10,0 % -6,2 % -6,1 % -5,3 % Q1/2011 Q2/2011 Q3/2011 Q4/2011 Q1/2012-5,1 % Q2/2012-3,9 % -13,3 % Q3/2012 Q4/ ,3 % Q1/2013-8,8 % -12,1 % Q2/2013 Q3/2013 0,1 % Q4/2013-1,9 % -4,1 % Q1/2014 Q2/2014-3,2 % Q3/ ,4 % -7,2 % Q4/2014 Q1/2015-5,3 % 28,2 Q2/2015 2% 0% -2% -4% -6% -8% -10% -12% -14% Quarterly rolling 12-month EBITA margin In Q2, sales decreased by 15.5% year-on-year Restructuring of equipment rental operations in 2014 decreased sales Q2 EBITA was EUR 0.1m (-0.6m), or 1.0% (-7.7%) of sales Profitability was improved by the restructuring measures carried out in late 2014 Focus on more profitable product and service segments and geographic regions Focus also increasingly on the modular space product area, where market position is strong Equipment rental market and the construction market expected to grow moderately in 2015 Sales (R12m) EBITA-% (R12m) 21

22 Central Europe Profitability improving, rental sales grew but lower trading sales in Q2 Key figures 4-6/ 4-6/ Change 1-6/ 1-6/ Change 1-12/ % % 2014 Sales ( m) 19,2 20,4-5,7 % 33,6 33,5 0,2 % 77,7 EBITA ( m) -0,3-1,2-4,4-5,8-6,0 EBITA-% -1,5 % -6,1 % -13,1 % -17,3 % -7,7 % No of personnel (FTE) ,9 % 363 No of depots ,6 % 75 Rolling 12-month sales and EBITA-% Highlights Quarterly sales (Rolling 12 months, EUR m) ,9 % Q1/2013-0,2 % Q2/2013-0,6 % -1,4 % -1,3 % Q3/2013 Q4/2013 Q1/2014 Sales (R12m) -4,7 % Q2/2014-6,8 % -7,7 % -7,0 % Q3/2014 Q4/2014 Q1/2015 EBITA-% (R12m) 77,8-5,9 % Q2/2015 2% 0% -2% -4% -6% -8% -10% Quarterly rolling 12-month EBITA margin In Q2, sales decreased by 5.7% year-on-year In the second quarter, rental sales grew but lower trading sales affected sales growth Fleet utilisation rates gradually improving. Going forward, the goal is to further improve utilisations and to develop pricing Q2 EBITA was EUR -0.3m (-1.2m), or -1.5% (-6.1%) of sales Improving profitability, but remaining negative due to the strong seasonal variation of the business Focus is to further improve profitability through sales development, pricing and the development of operational processes Modular space business has got off to good start Significant projects won in Germany 22

23 Eastern Europe 1 Sales growth and improved profitability 4-6/ 4-6/ Change 1-6/ 1-6/ Change 1-12/ Key figures %* % %* % 2014 Sales ( m) 12,4 11,9 3,6 % 22,1 20,9 5,8 % 50,0 EBITA ( m) 1,4 1,1 19,4 % 0,6-0,3 6,2 EBITA-% 11,0 % 9,5 % 2,7 % -1,5 % 12,3 % No of personnel (FTE) ,2 % 456 No of depots ,0 % 63 Rolling 12-month sales and EBITA-% Highlights Quarterly sales (Rolling 12 months, EUR m) ,5 % -10,9 % -3,6 % 2,6 % 4,6 % 7,7 % 9,2 % 9,6 % Q1/2011 Q2/2011 Q3/2011 Q4/2011 Q1/2012 Q2/2012 Q3/2012 Q4/2012 Sales (R12m) 10,8 % Q1/ ,2 % 13,3 % 15,5 % 13,9 % 15,3 % 15,2 % 12,3 % 13,5 % Q2/2013 Q3/2013 Q4/2013 Q1/2014 Q2/2014 Q3/2014 Q4/2014 Q1/2015 EBITA-% (R12m) 13,8 % 51,2 Q2/ % 20% 15% 10% 5% 0% -5% -10% -15% -20% Quarterly rolling 12-month EBITA margin In Q2, sales increased by 3.6% year-on-year (3.6% in local currencies) Favorable market environment in Lithuania, Poland, the Czech Republic and Slovakia. In Estonia and Latvia, demand for rental services softer Development of sales operations and performance management also contributing on sales Q2 EBITA was EUR 1.4m (1.1m), or 11.0% (9.5%) of sales Profitability improving y-o-y Fortrent Q2/2015 Sales EUR 8.1m (9.6m), i.e. down by 16.0% y-o-y. In local currencies, sales increased by 3.0% Profit for the period EUR 0.2m (-0.3m). Cramo s share 0.1m (-0.2m) included in Eastern Europe EBITA 1. As of 1 March 2013, sales in Eastern Europe come from Estonia, Latvia, Lithuania, Poland, the Czech Republic, Slovakia and the Kaliningrad region in Russia. Cramo s share (50 per cent) of the net result of Fortrent, the joint venture of Cramo and Ramirent in Russia and Ukraine, will be included in the EBITA of the Eastern Europe business segment. * Change in local currencies 23

24 Financial summary by product area H1/2015 Sales growth and improved profitability in both product areas ADDITIONAL INFORMATION BY PRODUCT AREA Equipment rental Modular Space Unallocated amounts and eliminations GROUP EUR 1' Sales Sales growth +4.7%* 1,9 % +9.1%* 6,5 % 2,8 % EBITDA % of sales 23,1 % 19,7 % 47,4 % 45,3 % 25,3 % 21,5 % Depreciation EBITA % of sales 7,3 % 3,9 % 30,7 % 29,8 % 9,2 % 5,6 % Capital employed * Change in local currencies

25 Performance improvement actions and Group strategy implementation driving value creation 25

26 Performance improvement actions: Central Europe Actions proceeding specific focus on sales performance management, pricing optimisation and development of process efficiencies in 2015 Cumulative EBITA (EUR million) 1,0 0,0-1,0-2,0-3,0-4,0-5,0-6,0-7,0 CENTRAL EUROPE -5,81 1,40-4,41 H Improvement H Actions implemented in 2014-Q2/2015 Transition Program: Specific program to ramp up sales in new products, hubs and regions. Also new ERP, business intelligence and CRM systems implemented Performance Management program started Fixed cost base successfully reduced by Q2/2015 Pricing Continued focus on customer segmentation to drive profitable growth Enhanced discount policy Sales Performance Management Harmonised steering model Implementation of KPIs Cost Control General improvement of operational efficiency (depot/district level) Focus on direct costs (materials and services) Repair and maintenance cost reduction and management systematics On-going actions in 2015 Sales ramp-up program continues, pricing optimisation Adoption of the Performance Management Model at all depots and districts continues Sales Performance Management and Performance Management of repair and maintenance continues 26

27 Performance improvement actions: Denmark Actions proceeding specific focus to drive profitable growth in selected products, services and geographies in ,0 Cumulative EBITA (EUR million) 0,5 0,0-0,5-1,0-1,5 DENMARK -1,36 1,86 0,50 H Improvement H Actions implemented in 2014-Q2/2015 Dynamic pricing tool implemented Specific sales efforts exerted Specific program on direct cost reductions Targeted fleet investments with best profitability Dynamic Pricing Continue implementation of dynamic pricing Cost Control / Efficiencies General improvement of operational efficiency Focus on direct costs (materials and services) Sales Performance Management Focus of operations to profitable product and service segments and geographic regions Continued focus on modular space On-going actions in 2015 Strong sales efforts, focus of operations to profitable product and service segments and geographic regions Continued focus on modular space Local headquarter consolidation, general improvement of operational efficiency 27

28 Performance improvement actions: Norway Actions proceeding specific focus on cost control in tough market environment and sales performance management in ,5 Cumulative EBITA (EUR million) 3,0 2,5 2,0 1,5 1,0 0,5 0,0 1,49 3,00 1,51 H Improvement H Dynamic Pricing Actively analysing price development and continuing implementation of dynamic pricing Cost Control / Efficiencies Specific focus on direct costs (materials and services) in 2015 Continuing tight cost control in fixed costs Sales Performance Management Harmonised steering model Implementation of KPIs and management systematics Actions implemented in 2014-Q2/2015 On-going actions in 2015 NORWAY Fixed cost base successfully reduced. Headcount reduced by 38 employees, three depots closed Dynamic pricing tool implemented Specific sales program implemented Performance improvement program regarding direct costs Continue implementation of dynamic pricing Sales Performance Management 28

29 Fixed cost base* continued to decrease in Q2/15 In Q2/15, comparable fixed costs decreased by EUR 4.2m vs. Q2/14 Fixed cost development ( 'm) Q Q Change H H Change Employee benefit expenses -36,1-37,2 +1,1-72,1-73,2 +1,1 Other operating expenses -28,8-33,2 +4,4-57,6-65,1 +7,5 Indirect cost* -64,9-70,4 +5,5-129,7-138,3 +8,6 Capital cost (depreciation) -25,4-24,1-1,3-49,6-47,6-2,0 Total fixed cost -90,3-94,5 +4,2-179,3-185,8 +6,6 * Comparison before reported non-recurring items 29

30 New strategy enables financial target realisation New strategy translated into concrete actions to drive value creation Deliver Cramo Story Drive Cramo Performance Management Win Central European market P&L impact Sales Direct costs Sales Direct costs Indirect costs Depreciation Sales Direct costs Indirect costs Implementation status Cramo Story internal implementation ongoing in all operating countries ( OpCos ) Delivery precision program on-going Cramo Story brand promises externally launched in November 2014, further launching in 2015 Depot Performance Mgt implemented in all OpCos, constant follow-up & improvement Repair & maintenance work stream under implementation in the Nordics Sales Perf. Mgt under implementation Purchasing work stream under implement. Fleet range extended, new organization, systems and processes in place Entry into modular space in H1/14 Intensified performance improvement actions under implementation Sales ramp-up, balancing cost base vs. sales 30

31 Cramo Adapteo overview and growth strategy Organic growth in the Nordics, also inorganic in the growth markets Modular space growth strategy Footprint Organic growth Grow faster than the market and continue investing in the business in the Nordics Continuous development of new and existing modular solutions in the Nordics Maintain and strengthen the existing container-based business of C/S Raum Continue to introduce new Nordic standard modules to the German market Develop the organisation and business processes in the Baltics Inorganic growth Grow through acquisitions in Germany: Acquire container businesses with relevant customer base and add Nordic standard modules to the offering SWEDEN FINLAND Expand to new geographical areas in Germany Modular space expansion to new countries also an option NORWAY Sales growth and improved profitability in H1/15 vs. H1/14 ( m) ESTONIA H1/14 H1/15 DENMARK LATVIA LITHUANIA ,6 44,3 GERMANY 18,9 21,0 12,4 13,6 Sales EBITDA EBITA

32 Cramo Adapteo rents market-leading modular space solutions Cramo s energy efficient solutions have been designed for Nordic conditions and deliver a user experience comparable to permanent buildings Clear separation between construction (site huts) and non-construction applications Construction Medium lease duration site huts Serves construction industry Cramo Adapteo (Non-construction) EUR 92.8m total sales in 2014 EUR 218m invested capital (YE 2014) Long lease durations Quality ( YE 2014) modular units, up by 5.7% Utilisation stable between 85-90% Serves public sector and different industries Site huts Accommodation Office space Day care Schools Solutions / specific applications 32

33 Future prospects European Central Bank s monetary stimulus is expected to improve the economic outlook for the eurozone For Cramo, significant uncertainties relate to the Ukrainian crisis and the overall economic situation in Russia Euroconstruct and Forecon estimate that in 2015, construction would increase in all of Cramo s operating countries with the exception of Finland, Estonia, Latvia and Russia In the long term, the equipment rental market is expected to grow faster than construction The European Rental Association (ERA) is expecting equipment rental services to increase in all of Cramo s main markets in The growth is expected to somewhat strengthen compared to 2014 Guidance for 2015 unchanged: There are economic and political uncertainties in Cramo s markets related to With the current market outlook, Cramo Group s sales will grow in local currencies and the EBITA margin will improve in 2015 compared to

34 Appendix 34

35 Key figures 4-6/ 4-6/ Change 1-6/ 1-6/ Change EUR million (unless otherwise stated) % % 1-12/ 2014 INCOME STATEMENT Sales 161,3 159,8 1,0 % 308,4 300,0 2,8 % 651,8 EBITDA 43,7 36,6 19,5 % 78,0 64,4 21,1 % 167,3 Operating profit (EBITA) before amortisation and impairment of 18,4 12,5 47,2 % 28,5 16,8 69,2 % 70,3 intangible assets resulting from acquisitions Operating profit/loss (EBIT) 16,2 9,8 65,6 % 24,2 11,6 108,8 % 34,3 Profit/Loss before tax (EBT) 13,0 6,4 102,3 % 17,9 4,8 271,2 % 21,5 Profit/Loss for the period 10,3 5,0 104,6 % 14,2 3,8 275,5 % 16,0 SHARE-RELATED INFORMATION Earnings per share (EPS), EUR 0,23 0,12 101,9 % 0,32 0,09 270,8 % 0,37 Earnings per share (EPS), diluted, EUR 0,23 0,11 105,4 % 0,32 0,09 277,1 % 0,36 Shareholders' equity per share, EUR 10,42 10,68-2,4 % 10,40 BALANCE SHEET Equity ratio, % 42,5 % 42,7 % 43,9 % Gearing, % 91,2 % 89,0 % 84,7 % Net interest-bearing liabilities 420,3 414,5 1,4 % 385,4 OTHER INFORMATION Return on investment, rolling 12-month, % 5,5 % 7,2 % 4,2 % Return on equity, rolling 12-month, % 5,7 % 8,7 % 3,4 % Gross capital expenditure (incl. acquisitions) 46,1 53,1-13,1 % 87,6 80,4 9,0 % 159,1 of which related to acquisitions and business combinations 0,0 11,3 8,6 11,3-24,5 % 11,4 Cash flow from operating activities 55,5 29,2 90,0 % 57,9 37,3 55,4 % 118,3 Cash flow after investments 15,5-10,6-12,4-21,4-6,5 Average number of personnel, FTE ,3 % Number of personnel at end of period, FTE ,0 %

36 Consolidated income statement 4-6/ 4-6/ Change 1-6/ 1-6/ Change EUR (1 000) % % 1-12/ 2014 SALES ,0 % ,8 % Other operating income ,1 % ,4 % Materials and services ,4 % ,2 % Employee benefit expenses ,7 % ,4 % Other operating expenses ,5 % ,6 % Depreciation and impairment on tangible assets ,2 % ,1 % and assets held for sale Share of profit/loss of joint ventures ,2 % ,7 % -523 EBITA ,2 % ,2 % % of sales 11,4 % 7,8 % 9,2 % 5,6 % 10,8 % Amortisation and impairment on intangible ,4 % ,6 % assets resulting from acquisitions and disposals OPERATING PROFIT/LOSS (EBIT) ,6 % ,8 % % of sales 10,1 % 6,1 % 7,9 % 3,9 % 5,3 % Finance costs (net) ,8 % ,0 % PROFIT/LOSS BEFORE TAXES ,3 % ,3 % % of sales 8,1 % 4,0 % 5,8 % 1,6 % 3,3 % Income taxes ,0 % ,1 % PROFIT/LOSS FOR THE PERIOD ,6 % ,4 % % of sales 6,4 % 3,1 % 4,6 % 1,3 % 2,5 % 36

37 Consolidated balance sheet Change EUR (1 000) % 2014 ASSETS NON-CURRENT ASSETS Tangible assets ,2 % Goodwill ,5 % Other intangible assets ,3 % Deferred tax assets ,9 % Available-for-sale financial investments ,9 % 187 Investments in joint ventures ,0 % Loan receivables ,8 % Trade and other receivables ,1 % TOTAL NON-CURRENT ASSETS ,4 % CURRENT ASSETS Inventories ,9 % Trade and other receivables ,4 % Income tax receivables ,4 % Derivative financial instruments ,6 % Cash and cash equivalents ,1 % TOTAL CURRENT ASSETS ,0 % Assets held for sale ,0 % Change EUR (1 000) % 2014 EQUITY AND LIABILITIES EQUITY Share capital ,0 % Share issue Other reserves ,1 % Fair value reserve ,0 % Hedging fund ,2 % Translation differences ,8 % Retained earnings ,4 % EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT COMPANY ,1 % Non-controlling interest Hybrid capital TOTAL EQUITY ,1 % NON-CURRENT LIABILITIES Interest-bearing liabilities ,8 % Derivative financial instruments ,8 % Deferred tax liabilities ,2 % Retirement benefit obligations ,5 % Other non-current liabilities ,2 % TOTAL NON-CURRENT LIABILITIES ,5 % CURRENT LIABILITIES Interest-bearing liabilities ,1 % Derivative financial instruments ,4 % 580 Trade and other payables ,0 % Income tax liabilities ,3 % Provisions TOTAL CURRENT LIABILITIES ,8 % TOTAL LIABILITIES ,1 % TOTAL ASSETS ,4 % TOTAL EQUITY AND LIABILITIES ,4 %

38 Cash flow statement 1-6/ 1-6/ 1-12/ EUR (1 000) Net cash flow from operating activities Net cash flow from investing activities Cash flow from financing activities Change in interest-bearing receivables Change in finance lease liabilities Change in interest-bearing liabilities Hybrid capital Proceeds from share options exercised Dividends paid Net cash flow from financing activities Change in cash and cash equivalents Cash and cash equivalents at period start Translation differences Cash and cash equivalents at period end

39 Sales and EBITA by business segment Q FINLAND SWEDEN NORWAY DENMARK CENTRAL EUROPE EASTERN EUROPE Sales growth: Sales growth: Sales growth: Sales growth: Sales growth: Sales growth: +5.8% +2.7% (+5.6%*) -6.4% (-2.3%*) -15.5% -5.7% +3.6% (+3.6%*) EBITA margin: EBITA margin: EBITA margin: EBITA margin: EBITA margin: EBITA margin: 18.7% 20.4% 15.1% 15.8% -0.3% 7.8% -7.7% 1.0% -6.1% -1.5% 9.5% 11.0% 76,8 78,9 25,1 26,6 19,4 18,2 20,4 19,2 11,9 12,4 7,5 6,3 4,7 5, ,6 12, ,1 1, ,6 0, ,2-0, ,1 1, Sales EBITA * Sales change in local currency 39

40 Modular space order book 87,6 103,2 100,8 102,7 81,6 98,3 95,3 89,5 97,1 96,6 95,1 85,2 94,0 103,4 100,6 98,9 97,5 99, % 90% 80% Share of rental (% of total order book) 70% 60% 50% 40% 30% 20% 10% 0% Q2/15 Q1/15 Q4/ 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 Order book (EUR m) Rental Sales

41 Quarterly capital expenditure % Highlights Gross Capital Expenditure (EUR m) ,3 94,2 41,6 72,7 52,6 18,6 Q1/11 Q2/11 37,8 39,2 1,5 38,1 37,8-0,3 Q3/11 Q4/11 24,3 0,0 24,3 Q1/12 40,8 0,0 34,4 0,8 40,8 33,5 Q2/12 Q3/12 25,6 0,0 25,6 Q4/12 46,2 31,2 15,0 Q1/13 53,1 45,1 11,3 31,1 30,7 27,3 21,6 0,0 41,7 45,4 31,9 31,2 33,3 33,0 27,3 22,4-0,8-0,8-0,6-0,3 41,5 33,6 8,5 0,4 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 0,0 46,1 Q2/15 60% 50% 40% 30% 20% 10% 0% -10% Gross Capital Expenditure to Quarterly sales (%) In Q2/2015, organic gross CapEx was EUR 46.1m (41.7m) Organic CapEx increased by 10.5% from Q2/14 Acquisitions EUR 0.0m (11.3m) In H1/2015, organic gross CapEx was EUR 79.1m (69.0m) Strong investments continue in product area modular space Continued good demand for modular space By business segment, in 2015, increased investments particularly in Sweden Market growing in Sweden CapEx CapEx, acquisitions Gross CapEx to sales Note: Acquisitions in 2011 include Theisen Group completed in Q1/11 and Tidermans and Stavdal completed in Q2/11. Acquisitions in Q1/2013 include Lambertsson and Kranpunkten completed in February 2013 and Russia joint venture completed in March Acquisitions in Q2/14 include OptiRent Oy and C/S RaumCenter and in Q1/15 acquisition of Vuokra-Pekat Oy in Finland and assets of Visby Hyrmaskiner AB in Sweden. 41

42 Strong capital structure Highlights Net interest-bearing liabilities (EUR m) ,2 % ,8 % Group financial target: Gearing < 100% 88,4 % ,7 % ,4 % ,8 % 74,3 % ,1 % ,7 % ,4 % ,9 % ,9 % 76,3 % ,0 % 85,6 % ,7 % ,9 % 91,2 % % 120% 100% 80% 60% 40% Gearing % At the end of Q2/15, net interest-bearing debt EUR 420.3m (414.5m) In Q2/15, gearing improving from Q1. Gearing at 91.2% (89.0%) Impacted, among other issues, by positive cash flow after investments and positive translation difference on equity Gearing meeting the financial target level of < 100% 20% 0 0% 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 Net interest-bearing liabilities Gearing % 42