Q3 218 PRESENTATION 26 th October 218 Leif Gustafsson, CEO Aku Rumpunen, CFO
Q3 218 Highlights Organic sales growth of 6.3% was supported by both business divisions Comparable EBITA improved by 3.5% to EUR 41.6 (4.2) million with a margin of 21.% (2.9%) driven by Modular Space, ER Scandinavia and ER Central Europe segments Modular Space organic rental sales grew by 13.8% and EBITA improved by 16.6% On 4 October 218, the Swedish Competition Authority approved Cramo s acquisition of the Nordic Modular Group An outcome of the previously announced strategic assessment of Modular Space is likely to result in a separation of the Equipment Rental and Modular Space business divisions, which may include a demerger and separate listing of Cramo Adapteo during 219 2
Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 14.5 % 1.1 % 12.1 % 14.9 % 14.7 % 12.8 % 11.8 % 9.7 % 12.5 % 1. % 3. % 3.5 % 4. % 6.1 % 7. % 7.8 % 9.5 % 9.3 % 1.2 % 14.2 % 15.7 % 15. % FINANCIAL TARGET REALISATION EQUIPMENT RENTAL MODULAR SPACE 15% Organic** sales growth (y-o-y) 2% Organic** rental sales growth (y-o-y) 1% 15% 5% % 3.7 % 3.2 % 1% 5% % Organic sales growth (YTD) Market 217* Market 218* Organic rental sales growth (YTD) Target 217-2 2% 15% 1% 5% % Comparable ROCE 2% 15% 1% 5% % Comparable ROCE Comparable ROCE Target 217-2 Comparable ROCE Target 217-2 * Target to grow faster than market. Market growth 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 and IFRS changes 3
BUSINESS SEGMENTS 4 4
Comparable EBITA (EUR million) 18. % 15.3 % 19.3 % EUR million Sales (EUR million) EQUIPMENT RENTAL: SCANDINAVIA GOOD PERFORMANCE WITH ALL-TIME-HIGH RETURN ON CAPITAL EMPLOYED 1 8 6 Sales vs. -3.6 3.9-6.5. 12 1 8 Sales 92.3 93.2 Organic growth +4.6%* vs LY 86.9 4 93.2 86.9 6-6.7% 2 4 Acquisitions Divestments Organic growth FX-changes IFRS 15 impact 2 The slowdown of residential construction growth in the Stockholm area had no material impact on third quarter sales in Sweden, which increased by 3.2% in local currency In Norway, sales developed positively driven by good demand, increased utilisation rates and large projects Profitability improved due to increased organic sales and good cost control 25 2 15 1 5 Comparable EBITA and ROCE 18.9 19. 19. -.4% 24% 22% 2% 18% 16% 14% 12% 1% Comparable ROCE According to Forecon, equipment rental market is expected to grow by 1% in 219 in Sweden Comparable EBITA Comparable ROCE All figures exclude IACs and are presented as comparable key figures * Organic growth reported in local currencies 5 ER Scandinavia has operations in Sweden and Norway with capital employed of MEUR 381 at the end of Q3 218.
Comparable EBITA (EUR million) 9.9 % 13.3 % 11.2 % EUR million Sales (EUR million) EQUIPMENT RENTAL: FINLAND AND EASTERN EUROPE PROFITABILITY NEGATIVELY IMPACTED BY LOWER SALES IN FINLAND 45 4 35 3 25 2 15 1 5 Sales vs. -.5 -.2.. 39. 38.3 Acquisitions Divestments Organic growth FX-changes IFRS 15 impact 5 45 4 35 3 25 2 15 1 5 Sales 38.6 39. 38.3-2.% Organic growth -.6%* vs LY Organic sales decreased by.6% in Q3 driven by Finland, where sales declined by 5.3% mainly followed by lower price levels, fierce competition and large projects included in comparison period Profitability increased strongly in Poland and Lithuania due to higher sales and good cost control. In Estonia, profitability was also strong during the third quarter. 14 12 1 8 6 4 2 1.6 Comparable EBITA and ROCE 1.6-21.% 8.4 2% 15% 1% 5% % Comparable ROCE Market situation continues to be positive Comparable EBITA Comparable ROCE All figures exclude IACs and are presented as comparable key figures * Organic growth reported in local currencies 6 ER Finland and Eastern Europe has operations in four countries with capital employed of MEUR 193 at the end of Q3 218.
Comparable EBITA (EUR million) 2.8 % 5. % 5.7 % EUR million Sales (EUR million) EQUIPMENT RENTAL: CENTRAL EUROPE POSITIVE ORGANIC SALES DEVELOPMENT IN THE THIRD QUARTER PROFITABILITY INCREASED IN 4 35 3 25 2 15 1 ALL COUNTRIES 5 21.9 11.1. Sales vs Acquisitions Divestments Organic growth.6.. FX-changes IFRS 15 impact 33.7 4 35 3 25 2 15 1 5 23.7 Sales 21.9 +53.5% 33.7 Organic growth +2.5%* vs LY Organic rental growth +.7%* vs LY Strong sales growth supported by KBS Infra acquisition (EUR 11.1 million impact) as well strong rental sales in all other countries apart from Germany, where rental sales decreased. Segments organic sales increased by 2.5% mainly driven by the Czech Republic. In Q3, profitability increased in all countries, including Germany. KBS Infra contributed positively to segment s profit and profitability. The performance of Germany has still not reached targets actions to improve profitability will be continued. 6 5 4 3 2 1-1 -2-3 3.8 Comparable EBITA and ROCE 3.3 +67.6% Comparable EBITA Comparable ROCE 5.6 7% 5% 3% 1% -1% -3% Comparable ROCE All figures exclude IACs and are presented as comparable key figures * Organic growth reported in local currencies 7 ER Central Europe has operations in five countries with capital employed of MEUR 151 at the end of Q3 218.
Comparable EBITA (EUR million) 11.8 % 9.7 % 1.1 % EUR million Sales (EUR million) MODULAR SPACE GOOD PERFORMANCE IMPROVEMENT CONTINUED 5 45 4 35 3 25 2 15 1 5.. Sales vs 7.3-1.3-4.5 38. 39.4 +3.9% Acquisitions Divestments Organic growth FX-changes IFRS 15 impact 5 45 4 35 3 25 2 15 1 5 Sales 38. 39.4 3.3 16.5 16.1 11.5 +13.8%* 18.8 21.4 23.3 Organic growth +2.2%** vs LY Third quarter sales increased by 3.9% compared to last year (7.7% in local currencies). Organic rental sales growth was 13.8% and organic total sales growth 2.2%. The adoption of the IFRS 15 standard and due to earlier revenue recognition decreased third quarter sales by EUR 4.5 million compared to previous year. Third quarter EBITA increased by 16.6%. Sweden, Denmark and Germany contributed the most of EBITA growth compared to LY. 12 1 8 6 4 2 7.5 Other sales Rental sales Sales Comparable EBITA and ROCE 8.4 +16.6% Comparable EBITA Comparable ROCE 9.8 19% 17% 15% 13% 11% 9% 7% 5% Comparable ROCE All figures exclude IACs and are presented as comparable key figures * Organic rental sales growth (y-o-y) in local currencies ** Organic growth reported in local currencies 8 Modular Space has operations in seven countries with capital employed over MEUR 348 at the end of Q3 218.
NORDIC MODULAR GROUP ACQUISITION RATIONALE STRENGHTENING OUR POSITION IN THE NORDIC MODULAR SPACE INDUSTRY Strengthen our modular space market position in the Nordics with adequate size and cost efficiency to attract top-tier investors Form a versatile modular space group with inhouse R&D, design and manufacturing to expand the semi-permanent sales business Penetrate the short-term/long-term rental business with optimised and differentiated solutions towards targeted customer segments Establish a strong platform with capacity to grow the rental and sales business in Central Europe, both organically and through acquisitions Increase modular space concept awareness and business transparency driving long-term value creation Be a true shaper of the industry NewCo presence 9
NORDIC MODULAR GROUP IN BRIEF BUSINESS OVERVIEW KEY FINANCIALS 217 Net sales (M ) 81 EBITA (M ) 17 (2.5%) CUSTOMER SEGMENTS OFFICE NETWORK Daycare School Office Accommodation 4% 93% 1% 7 sales offices in 4 countries PERSONNEL 3% 23 people External sales by offering External sales by customer segment KEY FACTS Founded in 1956, NMG conducts development, manufacture, sale and rental of relocatable buildings for professional customers in the Nordic countries Operates through three main subsidiaries Flexator, Temporent, and Nordic Modular Leasing Rental modules ~6 Contract assignm. Rental Other 18% 1% 36% 46% Module prod. Companies & other <25% >75% Municipalities 1
COMBINED COMPANY IN BRIEF BUSINESS OVERVIEW (CRAMO ADAPTEO + NMG) 217 KEY FINANCIALS 217 Net sales (M ) 27 EBITA (M ) 45 (21.9%) CUSTOMER SEGMENTS School Daycare Office Accommodation Events/ Events Exhibitions OFFICE NETWORK 23 16 sales offices in 7 countries PERSONNEL 392 15 people RENTAL MODULES 15 ~31. people *Cramo Adapteo figures are based on the modular space segment reporting 11
TRANSACTION PARAMETERS AND IMPACT TO CRAMO ENTERPRISE VALUE OF SEK 2.725 BILLION Acquisition was approved by the Swedish Competition Authority on 4 October 218. Acquisition is expected to be closed at the end of October 218. NMG will be consolidated as part of Cramo s Modular Space segment Transaction is financed with bank financing and convertible note amounting to SEK 55 million. Convertible note may be used by the sellers to reinvest in Cramo s modular space business at later stage under certain conditions. 25 2 15 1 5 New Adapteo SALES R12 Q2/218 (MEUR) 226 87 14 Adapteo NMG 1 8 6 4 2 New Group 84 87 753 NMG Cramo group EBITA R12 Q2/218 (MEUR) Acquisition is expected to bring 3 4 MEUR operational cost synergies p.a. We expect the full synergistic run-rate to be reached within 2 years. Acquisition is expected to have a positive impact on Cramo Group comparable EPS in 219 1 R12/218 EUR/SEK conversion rate 9.9 2 Adapteo figures are based on modular space segment reporting 12 6 5 4 3 2 1 New Adapteo 5 17 ** 33 Adapteo NMG 15 1 5 New Group ** 146 17 129 NMG Cramo group
GROUP PERFORMANCE Q3 218 13
Q3/15 Q4/15 Q1/16 Q2/16 Q3/15 Q4/15 Q1/16 Q2/16 Sales (EUR million) R12M sales (EUR million) SALES DEVELOPMENT ORGANIC SALES GROWTH OF 6.3% IN Q3 25 Quarters vs. : +3.1% (+7.5%*) (+6.3%**) 12% 78 Rolling 12 months R12M vs. R12M : +4.6% 8% 2 15 1 5 172 187 155 179 185 193 163 178 192 197 175 189 198 1% 8% 6% 4% 2% Sales growth (%, y-o-y) 76 74 72 7 68 66 64 661 668 676 694 77 712 72 719 726 73 742 753 759 7% 6% 5% 4% 3% 2% R12M sales growth (%, y-o-y) % 62 1% -2% 6 % * in local currencies ** organic sales growth in local currencies 14
EUR million GROUP Q3 SALES GROWTH VS LY ORGANIC SALES GROWTH 6.3% VS REPORTED SALES GROWTH 3.1% Sales vs 25 Organic sales growth +6.3% 2 11.2-4.1 11.3-7.8-4.5 vs LY 15 Equipment Rental +2.9% Scandinavia +4.6% 1 5 191.9 197.9 Finland and Eastern Europe -.6% Central Europe +2.5% Modular Space +2.2% Acquisitions Divestments Organic growth FX-changes IFRS15 impact 15
Q3/15 Q4/15 Q1/16 Q2/16 Q3/15 Q4/15 Q1/16 Q2/16 EBITA (EUR million) R12M EBITA (EUR million) COMPARABLE EBITA DEVELOPMENT IMPROVEMENT DRIVEN BY MODULAR SPACE AND ER CENTRAL Quarters Rolling 12 months 45 4 35 3 25 2 15 31.4 18.2 % 27. 13. 26.6 38.9 21.1 % 32.6 19.7 27.8 4.2 2.9 % 32.4 23.1 31. vs. : +3.5% 41.6 21. % 23% 21% 19% 17% 15% 13% 11% EBITA margin (%, line graph) 14 12 1 8 6 4 86 87 13. % 9 98 15 14.9 % 111 118 119 12 12 16.6 % 123 R12M vs. R12M : +6.5% 127 128 16.9 % 19% 17% 15% 13% 11% 9% R12M EBITA margin (%, line graph) 1 9% 5 7% 2 7% 5% 5% 16
65.5 59.8 67.9 64.2 65.7 59.3 56.9 54.8 51.4 62. 59.1 73.8 72.8 63.6 63.6 63.6 65.3 65.3 7.4 7.7 72.1 65.1 69.2 69.3 7.7 72.1 69.2 69.3 18.2 51.4 139.9 121.1 56.9 141.4 64.2 65.7 62. 59.1 139.9 141.4 Direct cost cost ratio ratio Indirect cost ratio ratio 18.2 272.9 121.1 239.4 33.1 % 33. % 34.4 % 33.1 % 33. % 31.7 % 33.6 % 33.2 % 32.3 % 34. % 34.5 % 33.5 % 33.2 % 33.1 % 31.9 % 32.8 % 31.5 % 38.3 % 38.8 % 38.2 % 37. % 31.7 % 39.3 % 33.7 % 41. % % 39.7 % 38.1 % 39.5 % 33.2 % 33.5 % 33.2 % 31.9 % 32.8 % 31.5 % 38.8 % 41.9 % 35.3 % 33.7 % 39.7 % 38.1 % 42.5 % 39.5 % 42.5 % DEVELOPMENT IN COST BASE* QUARTERLY DIRECT COST 1 QUARTERLY INDIRECT COST 2 4. %% 16 3 5. % % 4 35. %% 3. % 3. % 25. % 25. % 2. % 2. % 15. % 15. % 1. % 1. % 5. % 5. % Direct costs ratio improved slightly 14 8 6 4 2 25 12 2 1 15 1 5 Direct cost cost (EUR (EUR million) million) 45. % % 4. % 4. % 35. % 35. % 3. % 3. % 25. % 25. % 2. % 2. % 15. % 15. % 1. % 1. % 5. % 5. % Indirect cost ratio remained at last year level 35 3 3 25 25 2 2 15 15 1 1 5 5 Indirect cost cost (EUR (EUR million) million). %. % 217 218 217 218 217 218 217 218 216 217 218 216 217 218 216 217 218 216 217 218 216 217 218 Jan-Sep Q3 Q2 Q1 Jan-Sep Q4 Q3 Q2 Q1 Direct costs (right axis) Direct costs (right axis) Direct cost ratio (left axis) Direct cost ratio (left axis). %. % 217 218 217 218 217 218 217 218 216 217 218 216 217 218 216 217 218 216 217 218 216 217 218 Jan-Sep Q3 Q2 Q1 Jan-Sep Q4 Q3 Q2 Q1 Indirect costs (right axis) Indirect costs (right axis) Indirect cost ratio (left 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 17
Comparable EBITA (EUR million) COMPARABLE EBITA BRIDGE VS 45 1.4..1 1.4 -.1-2.2 2.3 -.1 4 41.6 4.2 4.2 35 3 25 2 15 1 5 2.9% of sales Q3/217 ER Scandinavia ER Eastern Europe ER Central Europe Development against LY MS Non-allocated Q3/218 ER MS Non-allocated Q3/217 18 21.% of sales Development against LY 2.9% of sales
Comparable EBITA (EUR million) COMPARABLE EBITA BRIDGE Q1- VS Q1-12 1 1.6-3. 3.3 5.8.4 1.8 95.7 5.8.4 8 87.7 87.7 6 4 2 16.5% of sales Q1-Q3/217 ER Scandinavia ER Eastern Europe ER Central Europe 17.% of sales 16.5% of sales MS Non-allocated Q1-Q3/218 ER MS Non-allocated Q1-Q3/217 Development against LY Development against LY 19
Quarterly EPS (EUR, bar graph) COMPARABLE EPS PERFORMANCE 2. 2.5 1.8 1.6 1.4 1.2 1..8 1.6.64 1.87.66 2.6.71 2. 1.5 1. EPS R12M (EUR, line graph).6.4.46.4.41.51.28.42.51.35.48.5.2.16. Q3/15 Q4/15 Q1/16 Q2/16 2.
Operating cash flow (EUR million, bar graph) OPERATING CASH FLOW AND CASH FLOW AFTER INVESTMENTS OPERATING CASH FLOW AT LAST YEAR LEVEL IN Q3 8 73.5 69.7 8 6 4 2-2 -4 1.9 53. 23.6 39.3 51.2 58.2 42.3 Q3/15 Q4/15 Q1/16 Q2/16 27.1 47.5 22.3. -5.5 Acquisition of shares of Just Pavillion (-8.1 MEUR) Positive impact of divestments (28 MEUR) 2.8 53.2 KBS acquisition 17.8 MEUR 49.9 6 4 2-2 -4 Cash flow after investments(eur million, line graph) 21
Q4/15 Q1/16 Q2/16 Q4/15 Q1/16 Q2/16 Net debt / EBITDA COMPARABLE ROE AND NET DEBT TO EBITDA 18% 16% 14.6 % 15.9 % 16.4 % 15. % 3.5 3. 3. 14% 12% 2.5 1.93 1.94 1% 2. 1.73 8% 1.5 6% 4% 1. 2%.5 %. Comparable ROE Target >15.% 217-2 Net debt / EBITDA Target < 3. 217-2 22
23 CONCLUSION AND OUTLOOK 218
CONCLUSIONS Q3 organic sales growth of 6.3% supported by both business divisions Comparable EBITA grew by 3.5% driven by Modular Space, ER Scandinavia and ER Central Europe performance Performance improvement actions in Modular Space are showing results EBITA grew by 16.6% in the third quarter ER Germany and Finland did not meet our targets and performance actions will continue On 4 October 218, the Swedish Competition Authority approved Cramo s acquisition of Nordic Modular Group SHAPE AND SHARE An outcome of the previously announced strategic assessment of Modular Space is likely to result in a separation of the Equipment Rental and Modular Space business divisions, which may include a demerger and separate listing of Cramo Adapteo during 219 24
OUTLOOK Equipment Rental Rental market is expected to grow in 218, but at a slower pace than in 217 We expect stabilising growth for the last quarter of the year Slowing growth is expected in Sweden and Finland, whereas growth in Poland, the Czech Republic and Slovakia is expected to remain strong Modular Space Market outlook for 218 is positive: over 1% growth is expected for Finland and 5 1% for other segment countries The assessment of strategic alternatives continue, including the demerger complemented by the NMG acquisition 25