Q PRESENTATION 25 October Leif Gustafsson, CEO Aku Rumpunen, CFO

Transcription

1 Q PRESENTATION 25 October 2017 Leif Gustafsson, CEO Aku Rumpunen, CFO

2 Q Highlights Organic sales growth in local currencies was 5.5% Comparable EBITA EUR 40.2m (38.9) with margin of 20.9% (21.1%) Strong sales growth of 25.1% in modular space resulted in profit improvement Actions in modular space division continue to improve profitability further Divestment of Danish equipment rental operations and Latvian and Kaliningrad operations were completed during the quarter

3 FINANCIAL TARGET REALISATION EQUIPMENT RENTAL 1-9/2017 MODULAR SPACE 1-9/2017 Organic sales growth**, % Comparable ROCE, % Organic rental sales growth**, % Comparable ROCE, % (12.1) (11.8) EQUIPMENT RENTAL Organic sales growth > markets *) ROCE, % > 14.5 *) According to ERA (European Rental Association) in the markets where Cramo is present. **) Organic sales growth excludes the impact of acquisitions, divestments and exchange rate changes MODULAR SPACE Double digit organic rental sales growth ROCE, % > 12.5 *) According to ERA (European Rental Association) in the markets where Cramo is present. **) Organic rental sales growth excludes the impact of acquisitions, divestments and exchange rate changes 3

4 4 BUSINESS SEGMENTS

5 EQUIPMENT RENTAL: SCANDINAVIA SOLID ORGANIC SALES GROWTH DRIVEN BY SWEDEN MEUR 7-9/17 7-9/16 Change 1-9/17 1-9/16 Change 2016 Sales %* 0.9 % %* 1.1 % %** 3.3%** EBITA % % 60.9 % of sales 19.2 % 20.5 % 18.0 % 16.6 % 16.1 % Comparable EBITA % % 64.5 % of sales 20.4 % 20.5 % 18.4 % 16.6 % 17.0 % ROCE 16.7 % 15.3 % 15.6 % Comparable ROCE 18.0 % 15.3 % 16.6 % Denmark Norway Sweden In Sweden, Q3 sales increased by 4.4% in local currencies. In Norway sales decreased mainly due to tight price competition ER Denmark operations were divested during Q3; affects on reported numbers ROCE improvement continued Capacity constrains limits the growth in Swedish construction market. Market growth is expected continue but to level out. In Norway growth is concentrating in Oslo region Divested in 31 Aug ER Scandinavia has operations in two countries with capital employed of MEUR 369 in the end of Q *in local currencies ** organic sales growth in local currencies 5

6 EQUIPMENT RENTAL: FINLAND AND EASTERN EUROPE STRONG ORGANIC SALES GROWTH SUPPORTED BY EASTERN EUROPE MEUR 7-9/17 7-9/16 Change 1-9/17 1-9/16 Change %* 2.9%* Sales % % %** 4.0%** EBITA % % 21.7 % of sales 30.9 % 27.4 % 18.8 % 15.0 % 15.6 % Comparable EBITA % % 22.3 % of sales 27.3 % 27.4 % 17.5 % 15.0 % 16.1 % ROCE 13.0 % 9.9 % 10.8 % Comparable ROCE 13.3 % 9.9 % 12.0 % Q3 organic sales growth was 4.8% in local currencies. Finland sales were -1.8% compared to last year, whereas Poland and Estonia overperformed last year In Finland the market growth is levelling out. In Estonia and Poland demand in construction is high and utilisation rates have increased. Also in Lithuania demand continues at a good level Latvia and Kaliningrad operations were divested during Q3 Poland Estonia Finland Latvia Lithuania Divested in 1 August ER Finland and Eastern Europe has operations in four countries with capital employed of MEUR 185 in the end of Q *in local currencies ** organic sales growth in local currencies 6

7 EQUIPMENT RENTAL: CENTRAL EUROPE SALES ON A LOWER LEVEL DUE TO PERIODICALLY LOW TRADING SALES MEUR 7-9/17 7-9/16 Change 1-9/17 1-9/16 Change 2016 Sales % % 77.9 EBITA % % 3.8 % of sales 15.2 % 15.9 % 5.3 % 3.8 % 4.9 % Comparable EBITA % % 3.8 % of sales 15.2 % 15.9 % 5.3 % 3.8 % 4.9 % ROCE 5.0 % 1.9 % 4.0 % Comparable ROCE 5.0 % 2.8 % 4.0 % Germany Central Europe sales were -7.3% compared to last year. The main reasons were the fluctuation in trading sales in Germany and lower number of business days in Q Profitability was also at a lower level than last year due to lower sales in Germany and increased cost base supporting further growth ROCE improved materially year on year In Germany market situation is stable whereas the demand is improving in Czech Republic and Slovakia Czech Republic Austria Slovakia Hungary ER Central Europe has operations in five countries with capital employed close to MEUR 93 in the end of Q

8 MODULAR SPACE STRONG SALES GROWTH THROUGH INCREASED PROJECT DELIVERIES MEUR 7-9/17 7-9/16 Change 1-9/17 1-9/16 Change 2016 Rental Sales %* 13.7 % %* 9.5 % 76.4 Sales %** 9.5%** % % EBITA % % 30.8 % of sales 22.2 % 24.7 % 23.5 % 26.2 % 26.2 % Comparable EBITA % % 30.8 % of sales 22.2 % 24.7 % 23.5 % 26.2 % 26.2 % ROCE 9.7 % 11.8 % 11.1 % Comparable ROCE 9.7 % 11.8 % 11.1 % Norway Denmark Sweden Finland Estonia Latvia Lithuania Q3 total sales were materially above last year increasing 25.3% in local currencies. Also rental sales showed a solid growth rate (14% in local currencies) Q3 organic rental sales growth was 11.5%, which was on a good level in all markets Q3 EBITA improved 12.6% supported by sales growth Demand for modular space projects remained at a good level in all countries and also market outlook is expected to be positive for next year Actions to improve project control and other operative processes continued in order to increase the profitability of the modular space division *in local currencies ** organic sales growth in local currencies 8 Germany Divested in 1 August Modular space has operations in seven countries with capital employed over MEUR 332 in the end of Q

9 NEW MODULAR SPACE PROJECTS IN Q3/17 1 Vest Lofoten High School, Leknes, Norway 1 Finland Customer: Nordland Fylkeskommune Rental period: 2.5 years Solution: School Norway Sweden 2 Estonia Number of modules: 74 units of the C90-system Area: 2,660 sqm spread over two and three floors Denmark Lithuania Germany Slovakia Cramo Adapteo is a leading modular space solution provider with a well established presence in seven countries serving customers in both the public and private sector with school, day care, office, event and accommodation solutions. 2 BAE Systems Hägglunds, Örnsköldsvik, Sweden Customer: BAE Systems Hägglunds Rental period: 3 years Solution: Office Number of modules: 108 units of the C90-system Area: 3,350 sqm spread over three floors

10 GROUP PERFORMANCE Q

11 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Sales (EUR million) R12M sales (EUR million) SALES DEVELOPMENT Quarters Rolling 12 months 740 8% Q3/17 vs. Q3/16: +3.8% (+4.0%*) (+5.5%**) % 12% 10% 8% 6% 4% 2% Sales growth (%, y-o-y) R12M Q3/17 vs. R12M Q3/16: +2.7% 726 7% 6% 5% 4% 3% 2% R12M sales growth (%, y-o-y) 20 0% 1% 0-2% 620 0% *in local currencies ** organic sales growth in local currencies 11

12 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 EBITA (EUR million, bar graph) EBITA (EUR million, bar graph) COMPARABLE EBITA DEVELOPMENT Quarters Rolling 12 months 45 25% % % % % 23% 21% 19% 17% 15% 13% 7% EBITA margin (%, line graph) % % % 40 Q3/17 vs. Q3/16: +3.2% R12M Q3/17 vs. 9% R12M Q3/16: +14.0% % 23% 21% 19% 17% 15% 13% 11% 9% 7% EBITA margin (%, line graph) 0 5% 0 5% 12

13 Direct cost ratio % 32.3 % 33.5 % 34.4 % 33.1 % 31.9 % 31.5 % 35.3 % 35.3 % Indirect cost ratio 34.5 % 34.4 % 33.1 % 34.6 % 33.5 % 32.4 % 40.2 % 39.3 % 39.7 % 44.1 % 41.9 % 42.5 % 39.4 % 38.3 % 38.2 % DEVELOPMENT IN COST BASE* QUARTERLY DIRECT COST 1 QUARTERLY INDIRECT COST 2 50% % % % % 35% 30% 25% 20% 15% 10% Direct cost (EUR million) 40% 35% 30% 25% 20% 15% 10% Indirect cost (EUR million) 5% 50 5% 50 0% % Jan-Sep. Q3. Q2. Q1 Jan-Sep. Q3. 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

14 Comparable EBITA (EUR million) COMPARABLE EBITA BRIDGE Q3 Y-O-Y % of sales Q ER Scandinavia ER Eastern Europe ER Central Europe MS Non-allocated Q ER MS Non-allocated Q Group Business segments and elim. Group Business divisions and elim. Group 20.9% of sales 21.1% of sales 14

15 Comparable EBITA (EUR million) COMPARABLE EBITA BRIDGE Q1-Q3 Y-O-Y % of sales Q1-Q3/2016 ER Scandinavia ER Eastern Europe ER Central Europe MS Non-allocated Q1-Q3/2017 ER MS Non-allocated Q1-Q3/2016 Group Business segments and elim. Group Business divisions and elim. Group 16.5% of sales 15.1% of sales 15

16 quarterly EPS (EUR, bar graph) COMPARABLE EPS PERFORMANCE EPS R12M (EUR, line graph) 0.00 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/

17 Operating cash flow (EUR million, bar graph) OPERATING CASH FLOW AND CASH FLOW AFTER INVESTMENTS Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/ Acquisition of Parviainen in Finland Divestments of ER Denmark and Latvia & Kaliningrad operations 28.0m Acquisition of Just Pavillon modular space assets in Denmark Cash flow after investment (EUR million, line graph) 17

18 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Comparable ROE% Net debt / EBITDA COMPARABLE ROE AND NET DEBT TO EBITDA 18% 16% 15.9 % % 12% 14.6 % % 10.6 % % % 0.00 Comparable ROE Target Net debt / EBITDA Target <

19 19 CONCLUSION AND OUTLOOK 2017

20 CONCLUSIONS & OUTLOOK 2017 Q3 / 2017 Organic sales growth 5.5% during the third quarter Stable result in equipment rental division High amount of deliveries in modular space resulted in strong sales growth and profit improvement Divestment of Danish equipment rental operations and Latvian and Kaliningrad operations completed Outlook In Cramo countries, the construction market outlook for the rest of 2017 is mainly positive. Based on latest estimates from the local institutes and Euroconstruct show growth also in 2018 although at lower level European Rental Association (ERA) expects growth in rental services in all of Cramo s markets in 2017 SHAPE & SHARE 20