cramo plc...cramo plc interim report 1.1.2016 –30.9.2016 ceo leif gustafsson interim cfo aku...

CRAMO PLC INTERIM REPORT

1.1.2016 – 30.9.2016

CEO Leif Gustafsson

Interim CFO Aku Rumpunen

FOR A GREAT DAY AT WORK

2

Contents

Highlights of Q3/2016 and market

outlook

Interim report Q3/2016

Business segments

Group performance

Group strategy and future prospects

Appendix

3

Financial highlights of Q3 and Jan-Sep 2016Profitable growth continued

1 July – 30 September 2016

Sales grew by 7.2% to EUR 184.8 (172.4)

million (7.9 % in local currencies)

EBITA EUR 38.9 (30.2) million, margin 21.1%

(17.5%)

Earnings per share EUR 0.64 (0.43)

1 January – 30 September 2016

Sales grew by 8.0% to EUR 519.4 (480.7)

million (8.8 % in local currencies)

EBITA EUR 78.5 (58.7) million, margin 15.1%

(12.2%)

Earnings per share EUR 1.20 (0.75)

Return on equity 14.5%

-60

-40

-20

0

20

40

60Jan-08

Apr-08

Jul-0

8Oct-08

Jan-09

Apr-09

Jul-0

9Oct-09

Jan-10

Apr-10

Jul-1

0Oct-10

Jan-11

Apr-11

Jul-1

1Oct-11

Jan-12

Apr-12

Jul-1

2Oct-12

Jan-13

Apr-13

Jul-1

3Oct-13

Jan-14

Apr-14

Jul-1

4Oct-14

Jan-15

Apr-15

Jul-1

5Oct-15

Jan-16

Apr-16

Jul-1

6

Cons

truc

tion

Con

fiden

ce In

dica

tor (

mea

n-ad

just

ed)

Finland Sweden Germany Denmark Poland Europe

Source: European Commission, September 2016

Long-term

average

Jun 2009

Lead indicator: Constr. confidence 2008 – Sep 2016Cramo’s main markets continuing performing well

Feb 2011

4

Construction output

(% change in real terms)2015 2016F 2017F 2018O

0,0 % 5,3 % 1,1 %(-1,0 %) (+6,5 %) (+1,8 %)

5,2 % 4,5 % 1,8 %(+9,0 %) (+9,0 %) (+3,0 %)

1,9 % 4,1 % 2,2 %(+1,8 %) (+4,2 %) (+2,2 %)

1,9 % 1,8 % 2,7 %(+1,6 %) (+2,5 %) (+3,2 %)

Finland 0,6 %

Sweden 0,2 %

Norway 3,9 %

Denmark 3,2 %

Central Europe* 0,2 % 2,0 % 1,2 % 0,4 %

Cramo Group* 3,2 % 4,2 % 1,9 % 1,2 %

Eastern Europe* 4,5 % 3,8 % 5,0 % 6,2 %

Construction growth estimatesMostly positive projections for Cramo countries over 2016-18

Sources: Euroconstruct, June 2016 and Forecon, June 2016

Country-specific data in brackets includes: Finland - Rakennusteollisuus RT (October 2016); Sweden - Sveriges Byggindustrier

(October 2016); Norway – Prognosesenteret (March 2016); Denmark - Dansk Byggeri (February 2016)

Highlights

In the Nordics, overall good

construction growth

projections for 2016-18

Stable growth outlook for CE

In Eastern Europe solid

construction growth

estimated for 2016-2018

* Figures based on weighted averages accordingly to Cramo R12m sales from countries in question.

5

6

Business segments

7

FinlandStrong sales growth and improved profitability

In Q3/16, sales grew by 15.8% y-o-y

− The overall construction market in Finland has taken an

upward turn this year. In particular in residential

construction number of new construction projects started

− The demand for modular space continued to develop

favourably particularly for school facilities

Q3 EBITA EUR 10.2 (8.5) million, margin 28.6%

(27.6%)

Cramo acquired Kurottaja- ja Kuljetuspalvelu

Parviainen Oy’s business on 1 April 2016

Construction growth1 forecast 5.3% for 2016

HighlightsRolling 12-month sales and EBITA-%

1 Euroconstruct, June 2016

7-9/ 7-9/ Change 1-9/ Change

2016 2015 % 2016 %

Sales (€m) 35,6 30,8 15,8 % 94,5 81,4 16,1 % 110,9

EBITA (€m) 10,2 8,5 19,8 % 20,9 16,8 24,0 % 22,4

EBITA-% 28,6 % 27,6 % 22,1 % 20,7 % 20,2 %

No of personnel (FTE) 485 448 8,3 % 448

No of depots 58 55 5,5 % 54

1-12/

2015Key figures

1-9/

2015

12

4,0

16

,3 %

16

,6 %

17

,4 %

18

,6 %

19

,1 %

19

,2 %

18

,8 %

18

,8 %

19

,4 %

20

,4 %

20

,5 %

19

,6 %

19

,5 %

19

,9 %

20

,5 %

20

,2 %

20

,3 %

20

,8 %

21

,3 %

0%

5%

10%

15%

20%

25%

0

20

40

60

80

100

120

140

Q1/2

01

2

Q2/2

01

2

Q3/2

01

2

Q4/2

01

2

Q1/2

01

3

Q2/2

01

3

Q3/2

01

3

Q4/2

01

3

Q1/2

01

4

Q2/2

01

4

Q3/2

01

4

Q4/2

01

4

Q1/2

01

5

Q2/2

01

5

Q3/2

01

5

Q4/2

01

5

Q1/2

01

6

Q2/2

01

6

Q3/2

01

6

Qu

arte

rly ro

lling

12

-mo

nth

EB

ITA

ma

rgin

Qu

art

erl

y s

ale

s (

Ro

llin

g 1

2 m

on

ths

, E

UR

m)

Sales (R12m) EBITA-% (R12m)


2016 2015 % 2016 %

Sales (€m) 86,9 80,4 8,0 % 259,5 233,4 11,2 % 331,2

EBITA (€m) 21,1 18,1 16,6 % 52,5 42,7 22,9 % 61,7

EBITA-% 24,2 % 22,5 % 20,2 % 18,3 % 18,6 %


No of depots 100 100 0,0 % 100

1-9/

2015

1-12/

2015Key figures

8

SwedenStrong sales growth and profitability improvement

In Q3, sales increased by 8.0% (+9.0% in locals)

− The equipment rental market situation has remained

strong especially in major urban areas and in Eastern

Sweden.

− Cramo has succeeded in capitalising on the good market

situation both in the equipment rental and modular space

product areas

− The demand for modular space is still good throughout the

country both in the public sector and in industry.

Q3 EBITA at EUR 21.1m (18.1m) with margin

of 24.2% (22.5%)

− Equipment rental utilisation rates are at a good level and

investments have been increased



* Change in local currencies

+11.2%*


+9.0%*

35

7,3

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 %

18

,7 %

18

,7 %

18

,6 %

18

,6 %

19,5

%

20

,0 %

0%

5%

10%

15%

20%

25%

250

270

290

310

330

350

Q1/2

01

2

Q2/2

01

2

Q3/2

01

2

Q4/2

01

2

Q1/2

01

3

Q2/2

01

3

Q3/2

01

3

Q4/2

01

3

Q1/2

01

4

Q2/2

01

4

Q3/2

01

4

Q4/2

01

4

Q1/2

01

5

Q2/2

01

5

Q3/2

01

5

Q4/2

01

5

Q1/2

01

6

Q2/2

01

6

Q3/2

01

6

Qu

arte

rly ro

lling

12

-mo

nth

EB

ITA

ma

rgin

Qu

art

erl

y s

ale

s (

Ro

llin

g 1

2 m

on

ths

, E

UR

m)



2016 2015 % 2016 %

Sales (€m) 16,2 16,6 -2,7 % 48,4 53,4 -9,5 % 70,4

EBITA (€m) 1,3 1,0 25,9 % 3,6 4,0 -9,6 % 5,4

EBITA-% 7,9 % 6,1 % 7,5 % 7,5 % 7,7 %


No of depots 28 28 0,0 % 28

1-9/

2015

1-12/

2015Key figures

9

NorwayPressures on sales, profitability improved

In Q3, sales decreased by 2.7% y-o-y (-1.7% in

local currency)

− The overall construction market in Norway is growing, but

geographic differences are significant, with growth

focusing on Oslo.

− The decrease in sales continued to be caused by tighter

price competition and the restructuring measures carried

out in 2015

Q3 EBITA EUR 1.3m (1.0m), margin 7.9% (6.1%)

− Profitability improved during the third quarter, despite the

decrease in sales and the tighter competition in both

equipment rental and modular space in Southern Norway.

− The goal for the remainder of the year is to develop

operational processes in modular space in particular.



-3.7%*-1.7%*



65

,3

1,7

%

3,9

%

5,0

%

6,3

%

6,1

%

6,8

%

6,9

% 7,3

%

8,2

%

6,7

%

5,9

%

5,4

%

5,5

%

7,5

%

7,5

%

7,7

%

7,4

%

7,2

% 7,7

%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

0

10

20

30

40

50

60

70

80

90

100

Q1/2

01

2

Q2/2

01

2

Q3/2

01

2

Q4/2

01

2

Q1/2

01

3

Q2/2

01

3

Q3/2

01

3

Q4/2

01

3

Q1/2

01

4

Q2/2

01

4

Q3/2

01

4

Q4/2

01

4

Q1/2

01

5

Q2/2

01

5

Q3/2

01

5

Q4/2

01

5

Q1/2

01

6

Q2/2

01

6

Q3/2

01

6

Qu

arte

rly ro

lling

12

-mo

nth

EB

ITA

ma

rgin

Qu

art

erl

y s

ale

s (

Ro

llin

g 1

2 m

on

ths

, E

UR

m)


10

DenmarkGood performance improvement

In Q3, sales increased by 9.5% y-o-y

− Sales increased as a result of the demand for modular

space that continued to be strong

− The demand for equipment rental is also good in major

urban areas, but price competition is still fierce

Q3 EBITA was EUR 0.9m (0.7m), or 11.6%

(10.0%) of sales

− The result was improved by sales growth and operational

development





2016 2015 % 2016 %

Sales (€m) 7,9 7,2 9,5 % 23,3 20,0 16,7 % 28,3

EBITA (€m) 0,9 0,7 27,1 % 2,5 1,2 105,3 % 1,9

EBITA-% 11,6 % 10,0 % 10,7 % 6,1 % 6,6 %


No of depots 9 8 12,5 % 8

1-9/

2015

1-12/

2015Key figures

31

,6-5,3

%

-5,1

%

-3,9

%

-13

,3 % -1

0,3

%

-8,8

%

-12

,1 %

0,1

%

-1,9

%

-4,1

%

-3,2

%

-11

,4 %

-7,2

% -5,3

%

-4,0

%

6,6

%

7,3

%

9,5

%

9,9

%

-15%

-10%

-5%

0%

5%

10%

15%

0

5

10

15

20

25

30

35

40

45

Q1/2

01

2

Q2/2

01

2

Q3/2

01

2

Q4/2

01

2

Q1/2

01

3

Q2/2

01

3

Q3/2

01

3

Q4/2

01

3

Q1/2

01

4

Q2/2

01

4

Q3/2

01

4

Q4/2

01

4

Q1/2

01

5

Q2/2

01

5

Q3/2

01

5

Q4/2

01

5

Q1/2

01

6

Q2/2

01

6

Q3/2

01

6

Qu

arte

rly ro

lling

12

-mo

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EB

ITA

ma

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Qu

art

erl

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ale

s (

Ro

llin

g 1

2 m

on

ths

, E

UR

m)


11

Central EuropeGood profitability improvement continued

In Q3, sales increased by 4.8% y-o-y

− The demand for modular space continued to be strong

− Both in the equipment rental and modular space product

areas, demand is expected to continue to be good during

the remainder of the year

Q3 EBITA was EUR 3.4m (1.5m), with margin of

14.6% (6.6%)

− The good development of profitability in Central Europe

continued in the third quarter, and the full-year EBITA-result

is expected to be positive

− In equipment rental, operations were focused on the best-

performing geographic regions in late 2015 and early 2016, which, combined with cost cuts and the development of

sales operations, shows in improved profitability

Construction growth1 forecast 2.0% in 2016



79

,3

0,8

%

-0,2

%

-1,1

%

-0,4

%

-0,9

% -0,2

%

-0,6

%

-1,4

%

-1,3

%

-4,7

%

-6,8

%

-7,7

% -7,0

% -5,9

%

-4,6

%

-4,3

%

-3,1

%

-0,1

%

2,4

%

-10%

-8%

-6%

-4%

-2%

0%

2%

0

10

20

30

40

50

60

70

80

90

Q1/2

01

2

Q2/2

01

2

Q3/2

01

2

Q4/2

01

2

Q1/2

01

3

Q2/2

01

3

Q3/2

01

3

Q4/2

01

3

Q1/2

01

4

Q2/2

01

4

Q3/2

01

4

Q4/2

01

4

Q1/2

01

5

Q2/2

01

5

Q3/2

01

5

Q4/2

01

5

Q1/2

01

6

Q2/2

01

6

Q3/2

01

6

Qu

arte

rly ro

lling

12

-mo

nth

EB

ITA

ma

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Qu

art

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ale

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Ro

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2 m

on

ths

, E

UR

m)



2016 2015 % 2016 %

Sales (€m) 23,2 22,1 4,8 % 57,8 55,7 3,6 % 77,2

EBITA (€m) 3,4 1,5 133,3 % 2,2 -3,0 -3,3

EBITA-% 14,6 % 6,6 % 3,9 % -5,3 % -4,3 %

No of personnel (FTE) 342 361 -5,3 % 350

No of depots 64 74 -13,5 % 71

Key figures1-9/

2015

1-12/

2015


2016 2015 % 2016 %

Sales (€m) 15,2 15,4 -1,1 % 36,5 37,5 -2,8 % 50,9

EBITA (€m) 3,9 4,0 -3,0 % 3,9 4,6 6,3

EBITA-% 25,8 % 26,3 % 10,6 % 12,4 % 12,3 %


No of depots 69 64 7,8 % 67

Key figures1-9/

2015

1-12/

2015

12

Eastern Europe1

Inconsistent development, soft market in Latvia and Lithuania

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, is included in the EBITA of the Eastern Europe business segment.

In Q3, sales decreased by 1.1% (-0.5% in locals)

− The development of the rental market has been

inconsistent in Eastern Europe

Q3 EBITA EUR 3.9m (4.0m), with margin of

25.8% (26.3%)

− Sales and profitability have developed favourably in

Estonia, the Czech Republic and Slovakia. In Poland,

sales decreased but profitability improved

− In Latvia and Lithuania, the demand for equipment

rental has continued to be weak and price competition is

still remaining fierce

Fortrent Q3/2016

− Sales EUR 8.4m (7.4m). In locals, sales up by 17.9%

− Profit EUR 0.8m (0.5m). Cramo’s share 0.4m (0.3m)

included in Eastern Europe EBITA



-1.8%*-0.5%*

49

,8

4,6

%

7,7

% 9,2

%

9,6

% 10

,8 %

11

,2 % 1

3,3

% 15

,5 %

13

,9 %

15

,3 %

15

,2 %

12

,3 %

13

,5 %

13

,8 %

13

,2 %

12

,3 %

11

,8 %

11

,2 %

11

,0 %

0%

5%

10%

15%

20%

25%

0

10

20

30

40

50

60

70

80

Q1/2

01

2

Q2/2

01

2

Q3/2

01

2

Q4/2

01

2

Q1/2

01

3

Q2/2

01

3

Q3/2

01

3

Q4/2

01

3

Q1/2

01

4

Q2/2

01

4

Q3/2

01

4

Q4/2

01

4

Q1/2

01

5

Q2/2

01

5

Q3/2

01

5

Q4/2

01

5

Q1/2

01

6

Q2/2

01

6

Q3/2

01

6

Qu

arte

rly ro

lling

12

-mo

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EB

ITA

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on

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UR

m)


ADDITIONAL

INFORMATION BY

PRODUCT AREA

EUR 1'000 1-9 2016 1-9 2015 1-9 2016 1-9 2015 1-9 2016 1-9 2015 1-9 2016 1-9 2015

Sales 433 878 411 726 86 027 69 393 -518 -411 519 387 480 708

EBITDA 128 458 108 614 35 784 32 653 -6 294 -7 455 157 948 133 812% of sales 29,6 % 26,4 % 41,6 % 47,1 % 30,4 % 27,8 %

Depreciation -65 563 -63 672 -13 244 -11 007 -639 -446 -79 447 -75 125

EBITA 62 895 44 942 22 539 21 646 -6 933 -7 901 78 501 58 687% of sales 14,5 % 10,9 % 26,2 % 31,2 % 15,1 % 12,2 %

Capital employed 654 035 641 661 276 770 239 276 28 399 26 779 959 204 907 715

Equipment rental Modular SpaceUnallocated amounts and

eliminationsGROUP

Financial summary by product area 1-9/2016Profitable growth continued in both product areas. High assembly

services boosted modular space growth, while affecting its margin

+24.4%*+6.1*


13

14

Group performance

16

0,0

16

1,4

18

2,4

18

4,6

14

8,5

16

0,1

17

3,6

17

5,1

14

0,3

15

9,8

17

1,1

18

0,6

14

7,1

16

1,3

17

2,4

18

7,2

15

5,4

17

9,1 18

4,8

-10%

-5%

0%

5%

10%

15%

20%

0

20

40

60

80

100

120

140

160

180

200

Q1/1

2

Q2/1

2

Q3/1

2

Q4/1

2

Q1/1

3

Q2/1

3

Q3/1

3

Q4/1

3

Q1/1

4

Q2/1

4

Q3/1

4

Q4/1

4

Q1/1

5

Q2/1

5

Q3/1

5

Q4/1

5

Q1/1

6

Q2/1

6

Q3/1

6

Qu

arte

rly s

ale

s g

row

th %

(y-o

-y, line g

rap

h)Q

ua

rte

rly s

ale

s (

EU

R m

illi

on

, b

ar

gra

ph

)

15

Cramo quarterly sales development

Q3/2016 sales EUR 184.8m,

y-o-y sales growth +7.2%

(+7.9% in local currencies)

As for product areas, sales grew

in local currencies by 5.5% in

equipment rental and by 21.5%

in modular space

Jan-Sep 2016 sales EUR

519.4m, y-o-y sales growth

8.0% (+8.8% in local

currencies)

As for product areas, sales grew

in local currencies by 6.1% in

equipment rental and by 24.4%

in modular space

Q3/16 vs. Q3/15:

+7.2% (+7.9%*)


Highlights

Group financial target: Sales growth faster than the market

16

Cramo quarterly EBITA development

Q3/16 EBITA improved to

EUR 38.9 (30.2) million, or

21.1% (17.5%) of sales.

EBITA grew by 28.9% y-o-y

Jan-Sep 2016 EBITA EUR

78.5m (EUR 58.7m), margin

15.1% (12.2%)

Group target reached as a

result of good overall

performance in different

markets

Group financial target:

EBITA margin > 15%

Highlights1

0,6

14

,3

31

,2

21

,9

6,4

16

,5

32

,3

24

,8

4,4

12

,5

30

,5

23

,0

10

,1

18

,4

30

,2

26

,1

13

,0

26

,6

38

,9

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

0

5

10

15

20

25

30

35

40

45

50

Q1/1

2

Q2/1

2

Q3/1

2

Q4/1

2

Q1/1

3

Q2/1

3

Q3/1

3

Q4/1

3

Q1/1

4

Q2/1

4

Q3/1

4

Q4/1

4

Q1/1

5

Q2/1

5

Q3/1

5

Q4/1

5

Q1/1

6

Q2/1

6

Q3/1

6

EB

ITA

% (lin

e g

rap

h)

Qu

art

erl

y E

BIT

A (

EU

R m

illi

on

, b

ar

gra

ph

)

58,7

78,5

58,7

4,0

9,8

-0,4

1,3

5,2

-0,8

0,7 18,0

0,9 1,0

30

35

40

45

50

55

60

65

70

75

80

GroupJan-Sep

2015

Finland Sweden Norway Denmark CentralEurope

EasternEurope

Non-allocatedand elim.

GroupJan-Sep

2016

ER MS Non-allocatedand elim.

GroupJan-Sep

2015

Co

nso

lid

ate

d E

BIT

A (

EU

R m

illi

on

)

EBITA bridgeJan-Sep 2015 2016 by segment and product area

Jan-Sep 2016 EBITA

improved to EUR 78.5 (58.7)

million, with margin of 15.1%

(12.2%)

EBITA above LY in all

segments except for Norway

and Eastern Europe

EBITA margin improved in all

segments except for Eastern

Europe. In Norway EBITA

margin was on LY level

In Equipment rental, EBITA

clearly higher compared to LY

Conclusions

CE: Strong EBITA

improvement

continued

12.2%

of

sales

15.1%

of

sales

FI and SWE:

good improvement

vs. LY

Strong

performance in ER

NA: In

Q3/2015

costs related

to change of

CEO

EE: still inconsistent

development

between markets

17

166,5

173,9

59,0

59,8

55,5

59,3

52,0

54,8

34,6

%

33,5

%

34,2

%

32,3

%

34,4

%

33,1

%

35,3

%

35,3

%

0

50

100

150

200

250

300

350

400

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

2015 2016 2015 2016 2015 2016 2015 2016

Jan-Sep . Q3 . Q2 . Q1

Dire

ct c

ost (E

UR

millio

n)

Dir

ect

co

st

rati

o

Direct cost (right axis) Direct cost ratio (left axis)

190,4

199,1

60,7

63,6

64,9

70,4

64,8

65,1

39,6

%

38,3

%

35,2

%

34,4

%

40,2

%

39,3

%

44,1

%

41,9

%

0

50

100

150

200

250

300

350

400

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

2015 2016 2015 2016 2015 2016 2015 2016

Jan-Sep . Q3 . Q2 . Q1

Ind

irect c

ost (E

UR

millio

n)

Ind

irect

co

st

rati

o

Indirect cost (right axis) Indirect cost ratio (left axis)

18

Development in cost baseIn Q3/16 decreases in direct and indirect cost ratios continued

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”

QUARTERLY INDIRECT COST 2QUARTERLY DIRECT COST 1

0,0

4

0,1

1

0,4

3

0,3

4

-0,0

4

0,1

9

0,4

8

0,3

8

-0,0

3

0,1

1

0,4

5

-0,1

7

0,0

9

0,2

3

0,4

3

0,3

7

0,1

6

0,4

0

0,6

3

-0,2

-0,1

0,0

0,1

0,2

0,3

0,4

0,5

0,6

Q1/1

2

Q2

/12

Q3

/12

Q4

/12

Q1

/13

Q2

/13

Q3

/13

Q4/1

3

Q1

/14

Q2

/14

Q3

/14

Q4

/14

Q1

/15

Q2

/15

Q3/1

5

Q4

/15

Q1

/16

Q2

/16

Q3

/16

Qu

art

erl

y d

ilu

ted

EP

S (

EU

R)

Cramo EPS performance (diluted)

Q3/16 EPS EUR 0.63

(0.43), +48.4%

Q3/16 net financial

expenses EUR 2.8 (3.7)

million

Q3/16 effective tax rate

19.1% (22.6%)

Jan-Sep 2016 EPS EUR

1.19 (0.75), +59.0%

Highlights

19

7,3

%

6,8

%

7,0

% 7,5

%

6,9

%

8,0

%

8,0

%

8,3

%

8,5

%

8,7

%

8,2

%

8,3

%

9,6

%

10

,8 %

10

,6 %

10

,9 %

12

,0 %

13

,3 %

14

,6 %

5,4

%

14

,5 %

0%

2%

4%

6%

8%

10%

12%

14%

16%

Q1/1

2

Q2/1

2

Q3/1

2

Q4/1

2

Q1/1

3

Q2/1

3

Q3/1

3

Q4/1

3

Q1/1

4

Q2/1

4

Q3/1

4

Q4/1

4

Q1/1

5

Q2/1

5

Q3/1

5

Q4/1

5

Q1/1

6

Q2/1

6

Q3/1

6

RO

E %

Comparable Return on Equity % Return on Equity %

20

Return on Equity

ROE improvement continued

in Q3/2016

ROE (R12m) 14.5% (5.4%)

Comparable ROE (R12m)

14.6% (10.6%)

Performance

improvement actions

continue in 2016

Implementation of

focused strategy / must-

win battles continue


ROE-% > 12%

Highlights

53,051,2

10,9

0,0

-40

-20

0

20

40

60

80

Q1/1

2

Q2/1

2

Q3/1

2

Q4/1

2

Q1/1

3

Q2/1

3

Q3/1

3

Q4/1

3

Q1/1

4

Q2/1

4

Q3/1

4

Q4/1

4

Q1/1

5

Q2/1

5

Q3/1

5

Q4/1

5

Q1/1

6

Q2/1

6

Q3/1

6

Qu

art

erl

y c

as

h f

low

(E

UR

m)

Cash flow from operations Cash flow after investments

21

Quarterly cash flow Increased investments in Q3 and Jan-Sep 2016

Jan-Sep 2016:

− Cash flow from operating

activities improved to EUR

114.0m (101.4m), mainly due

to the improved result

− Cash flow after investments

EUR -9.5m (-1.4m)

− Gross CapEx EUR 159.5m

(134.3m), +18.7%. Q3 gross

CapEx EUR 59.7m (46.7m),

+27.8%

Gearing at 81.2% (87.3%)

at the end of Sep

Net debt to EBITDA 1.93

(2.24) at the end of SepFormation of Fortrent,

acquisitions in Norway

Highlights

Acquisition of

Optirent in Finland

and C/S

RaumCenter in

Germany

Acquisition of

Vuokra-Pekat

Oy and Visby

Hyrmaskiner

Acquisition of

Parviainen Oy

Market outlook / Guidance on Group outlook

In main Cramo countries, the construction market outlook for 2016 is positive (Euroconstruct and Forecon estimates)

In addition to construction volume, the demand for equipment rental services is affected by industrial investments and the increase in the rental penetration rate

Demand for modular space is boosted by the increase in the demand for and popularity of modifiable and easily implementable space solutions. Demand is also increased by migration flows, demographic changes and completely new applications

European Rental Association (ERA) expects the use of rental services to increase in 2016 in all of Cramo’smarkets reported by ERA

Cramo estimates that demand for modular space has increased in the Nordics by appr. 6% in recent years and that market growth is somewhat stronger in Germany

Guidance for 2016 unchanged: “In 2016, Cramo Group’s sales will grow in local currencies and the EBITA margin will improve compared to 2015.”

22

23

Appendix

Change Change

EUR million (unless otherwise stated) % %

INCOME STATEMENT

Sales 184,8 172,4 7,2 % 519,4 480,7 8,0 % 667,9

EBITDA 65,9 55,8 18,2 % 157,9 133,8 18,0 % 185,7

Operating profit (EBITA) before amortisation and impairment of intangible

assets resulting from acquisitions

38,9 30,2 28,9 % 78,5 58,7 33,8 % 84,8

Operating profit/loss (EBIT) 37,7 28,3 33,6 % 74,8 52,5 42,6 % 76,7

Profit/Loss before tax (EBT) 34,9 24,6 42,1 % 66,5 42,5 56,4 % 63,8

Profit/Loss for the period 28,3 18,9 49,1 % 53,2 33,1 60,6 % 49,7

SHARE-RELATED INFORMATION

Earnings per share (EPS), EUR 0,64 0,43 48,3 % 1,20 0,75 58,9 % 1,13

Earnings per share (EPS), diluted, EUR 0,63 0,43 48,4 % 1,19 0,75 59,0 % 1,12

Shareholders' equity per share, EUR 11,22 10,52 6,7 % 11,05

BALANCE SHEET

Equity ratio, % 44,0 % 43,1 % 45,7 %

Gearing, % 81,2 % 87,3 % 75,1 %

Net interest-bearing liabilities 404,7 407,1 -0,6 % 368,4

OTHER INFORMATION

Return on investment, rolling 12-month, % 11,2 % 5,4 % 9,0 %

Return on equity, rolling 12-month, % 14,5 % 5,4 % 10,5 %

Gross capital expenditure (incl. acquisitions) 59,7 46,7 27,8 % 159,5 134,3 18,7 % 175,0

of which related to acquisitions and business combinations 0,0 -0,1 4,4 8,5 -48,1 % 9,8

Cash flow from operating activities 51,2 53,0 -3,5 % 114,0 101,4 12,4 % 174,9

Cash flow after investments 0,0 10,9 -9,5 -1,4 35,6

Average number of personnel, FTE 2 551 2 486 2,6 % 2 486

Number of personnel at end of period, FTE 2 583 2 478 4,2 % 2 473

7-9/

2016

7-9/

2015

1-12/

2015

1-9/

2016

1-9/

2015

Key figures

24

Change Change

EUR (1 000) % %

SALES 184 848 172 358 3,9 % 519 387 480 708 -30,4 % 667 877

Other operating income 4 034 2 810 43,6 % 11 162 9 784 14,1 % 13 462

Materials and services -59 752 -58 996 -1,3 % -173 888 -166 521 -4,4 % -236 619

Employee benefit expenses -36 758 -33 178 -10,8 % -113 893 -105 313 -8,1 % -143 899

Other operating expenses -26 844 -27 483 2,3 % -85 246 -85 069 -0,2 % -115 510

Depreciation and impairment on tangible assets and

assets held for sale

-26 975 -25 571 -5,5 % -79 447 -75 125 -5,8 % -100 878

Share of profit/loss of joint ventures 378 266 425 223 395

EBITA 38 931 30 206 28,9 % 78 501 58 687 33,8 % 84 827

% of sales 21,1 % 17,5 % 15,1 % 12,2 % 12,7 %

Amortisation and impairment on intangible assets

resulting from acquisitions and disposals

-1 183 -1 951 39,4 % -3 694 -6 219 40,6 % -8 114

OPERATING PROFIT/LOSS (EBIT) 37 748 28 255 33,6 % 74 807 52 468 42,6 % 76 714

% of sales 20,4 % 16,4 % 14,4 % 10,9 % 11,5 %

Finance costs (net) -2 828 -3 684 23,2 % -8 348 -9 977 16,3 % -12 923

PROFIT/LOSS BEFORE TAXES 34 920 24 571 42,1 % 66 459 42 491 56,4 % 63 791

% of sales 18,9 % 14,3 % 12,8 % 8,8 % 9,6 %

Income taxes -6 669 -5 626 -13 292 -9 390 -14 075

PROFIT/LOSS FOR THE PERIOD 28 251 18 945 49,1 % 53 167 33 102 60,6 % 49 715

% of sales 15,3 % 11,0 % 10,2 % 6,9 % 7,4 %

7-9/

2016

7-9/

2015

1-12/

2015

1-9/

2016

1-9/

2015

Consolidated income statement

25

30.9. 30.9. 31.12.

EUR (1 000) 2016 2015 2015

EQUITY AND LIABILITIES

EQUITY

Share capital 24 835 24 835 24 835

Other reserves 326 899 325 921 326 297

Fair value reserve

Hedging fund -10 355 -7 353 -7 074

Translation differences -40 155 -33 402 -26 395

Retained earnings 197 391 156 182 173 081

EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT

COMPANY 498 615 466 183 490 743

Hybrid capital

TOTAL EQUITY 498 615 466 183 490 743

NON-CURRENT LIABILITIES

Interest-bearing liabilities 317 692 329 462 293 811

Derivative financial instruments 12 628 8 571 8 322

Deferred tax liabilities 68 193 69 017 70 636

Retirement benefit obligations 1 593 1 822 1 707

Other non-current liabilities 2 300 2 688 2 832

TOTAL NON-CURRENT LIABILITIES 402 982 411 560 377 308

CURRENT LIABILITIES

Interest-bearing liabilities 92 545 86 188 78 097

Derivative financial instruments 2 028 903 233

Trade and other payables 147 422 126 475 136 070

Income tax liabilities 4 001 1 751 2 817

Provisions 245 326 611

TOTAL CURRENT LIABILITIES 246 241 215 644 217 827

TOTAL LIABILITIES 649 223 627 204 595 135

TOTAL EQUITY AND LIABILITIES 1 147 838 1 093 388 1 085 878

30.9. 30.9. 31.12.

EUR (1 000) 2016 2015 2015

ASSETS

NON-CURRENT ASSETS

Tangible assets 744 322 668 691 686 909

Goodwill 148 576 149 371 151 142

Other intangible assets 63 395 69 364 68 179

Deferred tax assets 13 092 13 724 13 463

Investments in joint ventures 5 215 4 177 2 608

Loan receivables 13 797 16 406 15 267

Trade and other receivables 1 395 1 137 1 436

TOTAL NON-CURRENT ASSETS 969 097 922 869 939 003

CURRENT ASSETS

Inventories 8 469 9 811 8 963

Trade and other receivables 140 037 136 520 130 482

Income tax receivables 3 905 12 020 3 031

Derivative financial instruments 57 3 616 889

Cash and cash equivalents 5 578 8 551 3 511

TOTAL CURRENT ASSETS 158 045 170 518 146 875

Assets held for sale

TOTAL ASSETS 1 147 838 1 093 388 1 085 878

Consolidated balance sheet

26

1-9/ 1-9/ 1-12/

EUR (1 000) 2016 2015 2015

Net cash flow from operating activities 114 034 101 419 174 892

Net cash flow from investing activities -123 507 -102 841 -139 309

Cash flow after investments -9 473 -1 421 35 583

Cash flow from financing activities

Change in interest-bearing receivables 1 479 1 254 2 388

Change in finance lease liabilities -4 791 -11 464 -13 295

Change in interest-bearing liabilities 43 246 35 382 -6 721

Hybrid capital

Proceeds from share options exercised 376 3 416 4 049

Proceeds from share issue

Non-controlling interest

Dividends paid -28 880 -24 128 -24 128

Net cash flow from financing activities 11 430 4 460 -37 707

Change in cash and cash equivalents 1 956 3 035 -2 125

Cash and cash equivalents at period start 3 511 5 689 5 689

Translation differences 111 -173 -53

Cash and cash equivalents at period end 5 578 8 551 3 511

Consolidated cash flow statement

27

4,0 3,9

15,4 15,2

2015 2016

1,5 3,4

22,1 23,2

2015 2016

0,7 0,9

7,2 7,9

2015 2016

1,0 1,3

16,6 16,2

2015 2016

18,1 21,1

80,486,9

2015 2016

8,5 10,2

30,8

35,6

2015 2016

NORWAY DENMARKCENTRAL

EUROPE

EASTERN

EUROPEFINLAND SWEDEN

Sales and EBITA by business segment Q3/15 vs. Q3/16

* Sales change in local currency

Sales

EBITA

+15.8%

27.6% 28.6%

EBITA margin:

Sales growth:

+8.0% (+9.0%*)

22.5% 24.2%

EBITA margin:

Sales growth:

-2.7% (-1.7%*)

6.1% 7.9%

EBITA margin:

Sales growth:

+9.5%

10.0% 11.6%

EBITA margin:

Sales growth:

+4.8%

6.6% 14.6%

EBITA margin:

Sales growth:

-1.1% (-0.5 %*)

26.3% 25.8%

EBITA margin:

Sales growth:

28

81

,6

98

,3

95

,3

89

,5

97

,1

96

,6

95

,1

85

,2

94

,0

10

3,4

99

,4

97

,5

98

,9

10

0,6

98

,0 10

4,6

10

6,1

12

0,2 11

8,3

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0

20

40

60

80

100

120

140

Q1/1

2

Q2/1

2

Q3/1

2

Q4/1

2

Q1/1

3

Q2/1

3

Q3/1

3

Q4/1

3

Q1/1

4

Q2/1

4

Q3/1

4

Q4/1

4

Q1/1

5

Q2/1

5

Q3/1

5

Q4/1

5

Q1/1

6

Q2/1

6

Q3/1

6

Sh

are

of re

nta

l (% o

f tota

l ord

er b

oo

k)

Ord

er

bo

ok (

EU

R m

)

Rental sales Other sales

29

Modular space order book

24,3

40,8

33,5

25,6

15,0

22,4

31,9 31,227,3

41,745,4

33,3 33,0

46,1 46,8

39,4

30,6

64,8

59,7

0,8

31,2

-0,8 -0,8 -0,6

11,3

-0,3

0,4

8,5

-0,1

1,3

4,4

24,3

40,8

34,4

25,6

46,2

21,6

31,1 30,7

27,3

53,1

45,1

33,6

41,5

46,1 46,7

40,7

30,6

69,2

59,7

0%

10%

20%

30%

40%

50%

60%

-10

0

10

20

30

40

50

60

70

80

Q1/1

2

Q2/1

2

Q3/1

2

Q4/1

2

Q1/1

3

Q2/1

3

Q3/1

3

Q4/1

3

Q1/1

4

Q2/1

4

Q3/1

4

Q4/1

4

Q1/1

5

Q2/1

5

Q3/1

5

Q4/1

5

Q1/1

6

Q2/1

6

Q3/1

6

Gro

ss

Cap

ital E

xp

en

ditu

re to

Qu

arte

rly s

ale

s (%

)

Gro

ss

Cap

ital E

xp

en

dit

ure

(E

UR

m)

CapEx CapEx, acquisitions Gross CapEx to sales

30

Quarterly capital expenditure

In Q3/2016, total gross

CapEx was EUR 59.7m

(46.7m)

− Organic gross CapEx was EUR

59.7m (46.8m)

− Organic CapEx increased by

27.8% from Q3/15

Gross capital expenditure

grew especially in Finland

and in Central Europe

Note:Acquisitions in Q1/2013 include Lambertsson and Kranpunkten completed in February 2013 and Russia joint venture completed in

March 2013. 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. In Q4/15, acquisitions include MDS Raumsysteme’s modular space business. In

Q2/16, acquisitions include Parviainen Oy in Finland.

Highlights

375392 388

347365

428402

365 375

414 415385

412 420 407

368 372405 405

77

,4 %

79

,8 %

74

,3 %

65

,1 %

69

,7 %

92

,4 %

82

,9 %

72

,9 %

76

,3 %

89

,0 %

85

,6 %

84

,7 % 9

2,9

%

91

,2 %

87

,3 %

75

,1 %

80

,0 %

84

,9 %

81

,2 %

0%

20%

40%

60%

80%

100%

120%

140%

0

300

600

900

1 200

Q1/1

2

Q2/1

2

Q3/1

2

Q4/1

2

Q1/1

3

Q2/1

3

Q3/1

3

Q4/1

3

Q1/1

4

Q2/1

4

Q3/1

4

Q4/1

4

Q1/1

5

Q2/1

5

Q3/1

5

Q4/1

5

Q1/1

6

Q2/1

6

Q3/1

6

Ge

arin

g %

Ne

t in

tere

st-

be

arin

g lia

bil

itie

s (

EU

R m

)

Net interest-bearing liabilities Gearing %

31

Strong capital structure

At the end of Q3/16, net

interest-bearing debt was

EUR 404.7m (407.1m)

In Q3/16, gearing at 81.2%

(87.8%)

Gearing clearly meeting the

financial target level of

< 100%

Net debt to EBITDA 1.93

(2.20)


Gearing < 100%

Highlights

cramo plc...cramo plc interim report 1.1.2016 –30.9.2016 ceo leif gustafsson interim cfo aku...

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