interim report 1.1.2012 –30.6 - cramo group€¦ · interim report q2/2012 group performance...

CRAMO PLC

INTERIM REPORT

1.1.2012 – 30.6.2012

CEO Vesa Koivula

POWERING YOUR BUSINESS

CEO Vesa Koivula

CFO Martti Ala-Härkönen

Contents

� Highlights of Q2/2012 and market

outlook

� Interim report Q2/2012

� Group performance

� Business segments

� Focus in 2012:

2

� Focus in 2012:

Profitability and cash flow

� Appendix

� Additional information

Highlights of Q2/2012Cash flow improved

• Q2/2012 Highlights

– Sales EUR 161,4m (161,1m), growth 0,2%. Growth excluding

divested operations 3,2%

– EBITA EUR 14,3m (14,3m); EBITA margin 8,9% (8,9%)

– EPS* EUR 0,11 (0,09)

• 1-6/2012 Highlights

– Sales EUR 321,4m (305,4m), growth 5,3%. Growth excluding

divested operations 6,9 %


Russia

Denmark

Estonia

Norway

Sweden

Finland

St. Petersburg

Moscow Yekaterinburg

3

Number of depots

06/2012: 397


– EPS* EUR 0,16 (-0,07)

– Return on equity (rolling 12 m.) 6,8% (1,9%)

– Cash flow from operations EUR 53,4m (32,4m)

– Cash flow after investments EUR 18,2m (-98,3m)

• New guidance

– In 2012, the Group’s sales will be approximately at the same

level as in 2011 and the EBITA margin will improve compared

with 2011. Gearing will decrease due to positive cash flow.

Denmark

GermanyPoland

CzechRepublic

Austria Hungary

Slovakia

Ukraine

Belarus

Lithuania

Latvia

Romania

Moldova

Bulgaria

Slovenia

Croatia

Bosnia and

HerzegovinaSerbia

Macedonia

Albania

Moscow Yekaterinburg

Switzerland

Kalinin-

grad

* Undiluted EPS

Construction forecasts 2012-14Latest 2012-13E forecasts reduced due to continued uncertainty

Construction output, % change 2012E 2013E 2014O

Finland-2,6% (-2,0%)

0,0%(2,0%)

2,6%

Sweden-2,5%(-1%)

2,2%(2%)

2,3%

Norway 4,0% 4,3% 3,4%

Denmark3,2%(3,1%)

2,3%(-3,3%)

2,2%

Baltic Countries 11,1% 2,4% -0,9%

4

Baltic Countries 11,1% 2,4% -0,9%

Poland 6,0% -2,1% 1,5%

Czech Republic -7,2% -1,9% 0,8%

Slovakia -3,0% 4,8% 3,6%

Russia 5,0% 4,0% 4,0%

Germany 1,6% 2,6% 1,6%

Austria 0,4% 0,6% 0,7%

Switzerland 2,6% 1,5% 1,8%

Hungary -3,6% 0,6% 6,6%

Sources: Euroconstruct and VTT, June 2012.

Country-specific data in brackets includes: Finland - Rakennusteollisuus RT (April 2012); Sweden - Sveriges Byggindustrier (May

2012); Denmark - Dansk Byggeri (February 2012)

Growth in rental to continue but at a slower paceERA:s 2012-13 nominal rental growth estimates taken downwards

7,1 %

11,3 %

1,7 %

6,5 %

5,3 %

11,9 %

3,8 %

4,2 %6,9 %

11,3 %

6,5 %

4,4 %

8,1 %

1,3 % 3,7 %

2,4 %

11,1 %

5,8 %

3,8 %

3,3 %

29,9 %

10,3 %

8,6 %

0 %

10 %

20 %

30 %

Total rental turnover growth % (nominal)

5

Sources: European Rental Association, ERA Convention 2012, June 2012

-31,0 %

-11,6 % -8,5 %

-16,0 %

-16,0 %

-5,2 %

-16,4 %

-30 %

-20 %

-10 %

0 %

2009 2010E 2011E 2012F 2013F

Total rental turnover growth % (nominal)

Finland Sweden Norway Denmark Germany Poland

-50 % -40 % -30 % -20 % -10 % 0 % 10 % 20 %

Russia

Nordic region

Germany

UK/Ireland

Confidence among rental companiesBusiness conditions fell significantly but growth in activity slightly

rising; regional variations still high, Cramo countries still positive

Improving

Current rental activity & conditions in Europe Q2/12 Current regional business conditions Q2/12

20 %

40 %

60 %

80 %

100 %

All

Multinationals

Benelux

France

Spain

Italy

6

Source: ERA / IRN Rental Tracker Survey June 2009 – June 2012 (International Rental News/European Rental Association)

Declining

ImprovingDeclining

-100 %

-80 %

-60 %

-40 %

-20 %

0 %

Q2/09Q3/09Q4/09Q1/10Q2/10Q3/10Q4/10Q1/11Q2/11Q3/11Q4/11Q1/12Q2/12

Current business conditions Quarterly activity year-on-year

Leading European Rental companiesCramo grew to #2 position in Europe in 2011

Areas of operation

Construction equipment,

tools, modular space

Construction equipment, tools


Type of operation

Europe, North America, Middle

East, Brazil, Australia/NZ, Asia

FRA, IRE, UK, GER, SPA, BEL,

SWI, LUX, DEN, MOR

FIN, SWE, NOR, DEN, RUS,

EST, LAT, LIT, POL, CZE, SLO,

GER, AUT, SWI, HUN

FIN, SWE, NOR, DEN, RUS, EST,

LAT, LIT, POL, CZE, SLO, HUN,

UKR

(France)

(Finland)

(Finland)

(US)

Modular space

807

680

650

450

0 200 400 600 800 1000

Loxam

Cramo

Ramirent

Algeco Scotsman

European Sales 2011 (EUR million)European Sales 2011 (EUR million)

7


Construction equipment

Construction equipment,

tools, party/events, accomod.

Cranes


Source: International Rental News, July-August 2012

Worldwide

Germany, Poland, Spain

France

(Belgium)

(UK)

(France)

(France)

(Germany)

(Germany)

UK, IRE, Middle East, North

Africa

Germany, Austria, Poland, Spain

FranceCranes, construction

equipment

370

352

334

271

270

254

Speedy Hire

Sarens

Kiloutou

HKL Baumaschinen

Mediaco Levage

Zeppelin Rental

Q2 / 2012

8

Group performance

83,6

96,7 105,5 116,6

107,3

116,4 129,0 143,8

126,8

154,0

155,7

143,3

106,9

109,3

115,1

115,4

101,4 114,0 130,4 146,4

144,2 161,1

181,6

192,9

160,0

161,4

30 %

50 %

70 %

100

120

140

160

180

200

Quarterly sales growth % (y

Quarterly sales (EUR million, bar graph)

Cramo quarterly sales development Q2/12 y-o-y sales growth 0,2%, excluding divested operations 3,2%

H1/12 y-o-y sales growth 5,3%, excluding divested operations 6,9%

Q2/12 vs. Q2/11:

0,2% (-0,7%*)

83,6

-30 %

-10 %

10 %

0

20

40

60

80

100

Q1/06

Q2/06

Q3/06

Q4/06

Q1/07

Q2/07

Q3/07

Q4/07

Q1/08

Q2/08

Q3/08

Q4/08

Q1/09

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

Quarterly sales growth % (y-o-y), line graph)

Quarterly sales (EUR million, bar graph)

9

* Change in local currencies

Note: Growth from continuing operations in Q2/12 was 3,2% compared with Q2/11

(excluding sales of modular space businesses divested in March 2012 in Finland)

Q2/12 vs. Q1/12:

0,9%

Group financial target:

Sales growth > 10%

25,0

22,9

22,4

30,7

26,1

30,7

34,2

19,8

30,5

23,8

0 %

5 %

10 %

15 %

20 %

25 %

25

30

35

40

45

50

EBITA % (lin

e graph)

Quarterly EBITA (EUR million, bar graph)

Cramo quarterly EBITA development Quarterly EBITA stayed in line with previous year


EBITA margin > 15%

9,8

15,1

22,9

16,7

22,4

17,4 19,8

1,5

4,8

9,6

1,4

1,5

3,8

15,2

14,1

2,5

14,3

10,6

14,3

-25 %

-20 %

-15 %

-10 %

-5 %

0 %

0

5

10

15

20

25

Q1/06

Q2/06

Q3/06

Q4/06

Q1/07

Q2/07

Q3/07

Q4/07

Q1/08

Q2/08

Q3/08

Q4/08

Q1/09

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

EBITA % (lin

e graph)

Quarterly EBITA (EUR million, bar graph)

10

-0,16

0,25

-0,14

0,25

0,43

0,56

0,43

0,23

0,47

0,53

0,20

0,03

0,05

0,24

0,08

0,38

0,39

0,04 0,11

0,0

0,2

0,4

0,6

0,8

Quarterly diluted EPS (EUR)

Quarterly EPS performance (diluted)Q2/12 EPS increased by 33% compared with Q2/11

**

-0,64-0

,20

-0,14 - 0,03

-0,80

-0,21

-0,14

-0,17

-1,0

-0,8

-0,6

-0,4

-0,2

Q1/07

Q2/07

Q3/07

Q4/07

Q1/08

Q2/08

Q3/08

Q4/08

Q1/09

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

Quarterly diluted EPS (EUR)

Earnings per share, diluted Impact of impairments on goodwill and intangible assets

11

* Q4/2009 includes write-downs on Group goodwill and intangible assets resulting from acquisitions totalling EUR 21,8m

** Q4/2011 includes write-downs on Group goodiwll totalling EUR 5,5m

Of note is that due to the rights issue completed in April 2011, the earnings per share (EPS) figures for the previous periods have been

adjusted by multiplying the numbers of shares used in the calculations by the following adjustment factor: fair value per share before

exercise of rights divided by the theoretical ex-rights value per share.

*

16,7 %

18,5 %

19,5 %

18,4 %

17,7 %

18,0 %

16,9 %

14,9 %

10,4 %

3,9 %

0,2 % 1,9 %

5,1 %

5,4 % 7,3 %

6,8 %

5 %

10 %

15 %

20 %

25 %

ROE %

Return on Equity ROE (rolling 12 months) at 6,8%


ROE % > 15%

-1,6 %

-12,1 %

-12,4 %

-11,8 %

-10,6 %

-0,6 %

- 0,2 % 1,9 %

-15 %

-10 %

-5 %

0 %

5 %

Q1/07

Q2/07

Q3/07

Q4/07

Q1/08

Q2/08

Q3/08

Q4/08

Q1/09

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

Return on Equity %

12

After a growth period, CapEx level reduced CapEx cut from 2011 levels, according to plan

41,6

53,0

91,394,2

30 %

40 %

50 %

60 %

70 %

60

80

100

120

140

Gross Capital E

xpenditure to

Quarterly sales (%

)Gross Capital Expenditure (EUR m)

13

Note: Acquisitions in 2011 include Theisen Group completed in Q1/11 and Tidermans and Stavdal completed in Q2/11

12,17,0 5,7 6,6 3,5

12,6 9,0

28,518,6

52,6

38,1 37,8

24,3

40,80,4 4,1

4,1

24,5

72,7

-0,3

1,5

0,0

0,0

12,57,0 5,7 6,6

3,5

16,713,0

53,0

37,8 39,2

24,3

40,8

-10 %

0 %

10 %

20 %

30 %

-20

0

20

40

60

Q1/09 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

Gross Capital E

xpenditure to

Quarterly sales (%

)Gross Capital Expenditure (EUR m)

CapEx CapEx, acquisitions

Strong cash flow continues Q2/2012 cash flow improved clearly from last year as a result of decreased

investments, decreased net working capital and other measures

20

40

60

80

Quarterly cash flow (EUR m

)

14

Note: Cash flow after investments includes acquisitions

-80

-60

-40

-20

0

Q1/06

Q2/06

Q3/06

Q4/06

Q1/07

Q2/07

Q3/07

Q4/07

Q1/08

Q2/08

Q3/08

Q4/08

Q1/09

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

Quarterly cash flow (EUR m

)

Cash flow from operations Cash flow after investments

Sales to tangible assets Slight deterioration in Q2, but remaining above pre-2008 levels

60 %

90 %

120 %

400

500

600

700

800Sales, R12m / T

angible assets, %

Sales or Tangible assets, EUR m

15

0 %

30 %

0

100

200

300

Q4-2006

Q1-2007

Q2-2007

Q3-2007

Q4-2007

Q1-2008

Q2-2008

Q3-2008

Q4-2008

Q1-2009

Q2-2009

Q3-2009

Q4-2009

Q1-2010

Q2-2010

Q3-2010

Q4-2010

Q1-2011

Q2-2011

Q3-2011

Q4-2011

Q1-2012

Q2-2012

Sales, R12m / T

angible assets, %

Sales or Tangible assets, EUR m

Sales, R12m Tangible assets Sales / tangible assets

106,9 % 118,4 %

109,1 %

109,4 %

126,5 %

151,3 %

147,1 %

149,3 %

155,6 %

121,5 %

113,1 %

113,4 %

108,4 %

111,7 %

107,5 %

103,4 %

124,2 %

91,8 %

88,4 %

78,7 %

77,4 %

79,8 %

80 %

100 %

120 %

140 %

160 %

600

900

1 200

Gearing %

bearing liabilities (EUR m)

Stable capital structureGearing on targeted level, expected to decrease during H2/2012


Gearing < 100%

319356 352 365

433

516 514477 482

429 413384 375 382 381 382

463430 420

389 375 392

0 %

20 %

40 %

60 %

80 %

0

300

600

Q1/07Q2/07Q3/07Q4/07Q1/08Q2/08Q3/08Q4/08Q1/09Q2/09Q3/09Q4/09Q1/10Q2/10Q3/10Q4/10Q1/11Q2/11Q3/11Q4/11Q1/12Q2/12

Gearing %

Net interest-bearing liabilities (EUR m)

Net interest-bearing liabilities Gearing %

16

Achieving operational excellence Financial steering priorities in 2012

• Drive harmonised performance management at the depot level

– Performance management based on clear objectives

• Cost control tightened, focused cost saving actions

– Targeted cost items: repair & maintenance, transports, discretionary

costs, indirect costs

– Focused cost saving actions for selected countries

• Increase capital efficiency, eg. fleet turnover

Reduce

costs

– Targets set for reducing idle fleet

• Cautiousness on new CapEx

– Securing high fleet utilisation levels

– Tightened pricing control

• Release cash

– Reduce net working capital: Country level targets and action plans

for NWC reduction

– Group wide cash management � ”Zero cash” target

17

Increase

cash flow

Q2 / 2012

18

Business segments

FinlandSales decreased as a result of divestment in Q1, profitability improved

� Sales decreased in Q2/12 as a result of the divestment

of modular space production and customised modular

space rental businesses in March

� In construction, demand has diminished and the number

Highlights Sales by quarter

23,3

22,6

23,8

22,4

19,1 22,7 27,4 30,4

28,2 31,3 34,1

34,0

29,3

25,6

20

25

30

35

40

Quarterly sales (EUR m)

2009

2010

Change Change

(EUR 1 000) % %

Sales 25 606 31 271 -18,1 % 54 954 59 461 -7,6 % 127 565

EBITA 3 685 4 248 -13,3 % 6 634 6 424 3,3 % 20 238

EBITA-% 14,4 % 13,6 % 12,1 % 10,8 % 15,9 %

1-12/

2011

4-6/

2012

4-6/

2011

1-6/

2012

1-6/

2011

19

� In construction, demand has diminished and the number

of new building permits granted has decreased

� The average rental periods have to a certain extent

become shorter

� In industrial investments, the strongest demand was in

the energy and mining sectors

� Demand for modular space remained steady

� Relative profitability improved year-on-year

� New customer agreement signed with Metso in June

� Euroconstruct1 and RT2 forecast construction growth of

-3% and -2% in 2012, respectively

� ERA3 estimates some 2% growth for equipment rental

in 2012 while VTT4 forecasts 3% growth

1. Euroconstruct, June 2012

2. Rakennusteollisuus RT, April 2012

3. European Rental Association, ERA Convention 2012, June 2012, Nominal growth in rental turnover

4. VTT, June 2012

EBITA by quarter

0

5

10

15

20

Q1 Q2 Q3 Q4


2011

2012

0,9

1,8

4,3

3,7

0,6

2,5

6,1

3,3

2,2

4,2

7,7

6,1

2,9

3,7

0

1

2

3

4

5

6

7

8

9

Q1 Q2 Q3 Q4

Quarterly EBITA (EUR m)

2009

2010

2011

2012

Change Change

(EUR 1 000) % %

Sales 75 799 72 488 4,6 % 153 255 140 589 9,0 % 308 949

EBITA 11 561 13 566 -14,8 % 24 442 22 911 6,7 % 58 047

EBITA-% 15,3 % 18,7 % 15,9 % 16,3 % 18,8 %

4-6/

2012

4-6/

2011

1-6/

2012

1-6/

2011

1-12/

2011

Sweden Sales growth continued, profit improvement adjustments on-going

� Sales increased by 4,6% compared to Q2/11 (3,4% in

local currency)

� Decrease in new construction activity was visible in the

demand for equipment rental services


8,3%1

(local curr.)

3,4%1

(local curr.)

50,1

53,0

55,3

57,4

51,9 60,6

64,8 74,5

68,1

72,5 79,0 89,4

77,5

75,8

50

60

70

80

90

100


2009

2010

20

demand for equipment rental services

� In spite of weakening market outlook, increase in co-

operation with several major customers, e.g. new

agreements in power plant projects in Växjö and Malmö

� Demand has remained at a good level in the Stockholm

area and in Northern Sweden

� Cramo acquired the rental fleet and brand of

Maskincity i Oskarshamn AB (consolidated into Group

from July 1, 2012)

� Euroconstruct2 estimates construction growth to be -

3% in 2012 (BI3 -1%)

� ERA4 predicts growth of some 4% for equipment

rental in 2012

1. Change in sales measured in local currency


3. Sveriges Byggindustrier, May 2012


EBITA by quarter

0

10

20

30

40

50

Q1 Q2 Q3 Q4


2011

2012

7,3

9,8 11,1

7,8

5,4

8,8

12,3 14,6

9,3

13,6

17,2

18,0

12,9

11,6

02468

10121416182022

Q1 Q2 Q3 Q4


2009

2010

2011

2012

Change Change

(EUR 1 000) % %

Sales 19 121 17 378 10,0 % 39 919 37 582 6,2 % 79 265

EBITA 697 -1 150 160,6 % 1 620 -735 320,4 % 857

EBITA-% 3,6 % -6,6 % 4,1 % -2,0 % 1,1 %

1-12/

2011

4-6/

2012

4-6/

2011

1-6/

2012

1-6/

2011

NorwaySales developed positively, profitability improved

� Sales increased by 10,0% compared to previous

year in Q2/12 (6,3% in local currency)

� Construction activity increased in Norway, driven by

the oil and gas industry


2,8%1

(local curr.)

6,3%1

(local curr.)

15,8

15,7

15,6

16,3

17,1

15,3 17,0 19,7

20,2

17,4

20,7

21,0

20,8

19,1

15

20

25


2009

2010

21

the oil and gas industry

� Strong construction activity expected to continue

� EBITA remained positive in Q2/12 and improved

significantly from the previous year

� Profitability improved as a result of the turnaround

plan and improved market situation and is expected

to develop favourably during the rest of year as well

� Euroconstruct2 estimates construction to increase

by 4% in 2012

� ERA3 predicts growth of 7% for equipment rental in

Norway in 2012




EBITA by quarter

0

5

10

Q1 Q2 Q3 Q4


2011

2012

1,2

1,1

0,9

0,9

-0,1

-0,3

0,3 0,4

0,4

-1,2

1,0

0,6

0,9

0,7

-2

-1

0

1

2

Q1 Q2 Q3 Q4


2009

2010

2011

2012

Change Change

(EUR 1 000) % %

Sales 7 281 7 750 -6,1 % 15 470 14 007 10,4 % 34 965

EBITA -547 -646 15,3 % -1 992 -2 281 12,7 % -2 132

EBITA-% -7,5 % -8,3 % -12,9 % -16,3 % -6,1 %

4-6/

2012

4-6/

2011

1-6/

2012

1-6/

2011

1-12/

2011

DenmarkH1/2012 sales grew, EBITA improved but remained unsatisfactory

� Sales decreased by 6,1% in Q2/12 from Q2/11� An important long-term modular space rental

agreement signed for the Copenhagen metro project

� Also, a long-term lifting agreement signed for the


8,5 8,8

9,7

9,3

5,7

6,7

8,4 8,6

6,3

7,8

9,7

11,3

8,2

7,3

6

8

10

12


2009

2010

22

� Also, a long-term lifting agreement signed for the

construction site of a wind power plant

� EBITA still unsatisfactory, improvements continue� Depot network was optimised in the beginning of the

year by closing two depots

� Fleet utilisation rates were good but prices on the

market are still low

� Cramo seeks profitability improvement by

centralising operations and raising rental rates

� Euroconstruct1 estimates construction output to

grow by 3% in 2012, while Dansk Byggeri2

anticipates also growth of 3%

� ERA3 predicts growth of 1% for rental in 2012


2. Dansk Byggeri, February 2012


EBITA by quarter

0

2

4

6

Q1 Q2 Q3 Q4


2011

2012

-1,7 -1

,2

-1,6

-4,4

-3,2

-1,3 -0,8

0,0

-1,6

-0,6

0,3

-0,1

-1,4

-0,5

-5

-4

-3

-2

-1

0

1

Q1 Q2 Q3 Q4


2009

2010

2011

2012

Central Europe1

Sales affected by general economic uncertainty, EBITA turned positive

� Sales decreased by 8,6% in Q2/12 from Q2/11

� The general economic uncertainty in Europe has reduced the demand for civil engineering services in Germany and Austria. Cramo’s product portfolio is


10,6

19,9

21,0

19,7

11,8

18,2

15

20

25


2009

2010

Change Change

(EUR 1 000) % %

Sales 18 238 19 945 -8,6 % 30 019 30 556 -1,8 % 71 213

EBITA 929 1 640 -43,4 % -3 385 451 -850,6 % 3 708

EBITA-% 5,1 % 8,2 % -11,3 % 1,5 % 5,2 %

1-12/

2011

4-6/

2012

4-6/

2011

1-6/

2012

1-6/

2011

23

currently focused on this area

� EBITA in Q2/12 turned positive but did not meet expectations

� Operations will be modified according to the Cramo Concept and centralised according to “Best in town” strategy

� Non-recurring costs of the transition program amounted to EUR 0,5m in H1/2012

� Operations were terminated in Switzerland

� Euroconstruct2 forecasts construction growth of nearly 2% in 2012 in Germany (civil engineering -2%)

� ERA3 predicts growth of some 6% for equipment rental in Germany in 2012

1. Business Segment Central Europe was formed as of February 1, 2011 as a result of the acquisition of the Theisen Group. The

Business Segment includes Cramo’s operations in Germany, Austria, Switzerland and Hungary. Comparison period (1-6/2011) data is

available for five months only.


3. European Rental Association, ERA Convention 2012, June 2012

EBITA by quarter

10,6

0

5

10

Q1 Q2 Q3 Q4


2011

2012

-1,2

1,6

2,9

0,3

-4,3

0,9

-5

-4

-3

-2

-1

0

1

2

3

4

Q1 Q2 Q3 Q4


2009

2010

2011

2012

Change Change

(EUR 1 000) % %

Sales 16 704 14 999 11,4 % 30 574 27 868 9,7 % 66 575

EBITA 672 -1 524 144,1 % -129 -3 741 96,6 % 1 708

EBITA-% 4,0 % -10,2 % -0,4 % -13,4 % 2,6 %

4-6/

2012

4-6/

2011

1-6/

2012

1-6/

2011

1-12/

2011

Eastern Europe1

Strong sales growth, profitability improved clearly

� Sales growth in Q2/12 continued at 11,4% compared to Q2/11 (12,8% in local currency)

� Business development continued to be favourable in Russia and Baltic countries


11,1%2

(local curr.)

12,8%2

(local curr.)

10,4

10,4 12,0

11,3

9,0 10,7

14,4 15,8

12,9 15,0

19,3

19,5

13,9 16,7

15

20

25


2009

2010

24

� In Poland, the Czech Republic and Slovakia, demand picked up but the overall market situations is more demanding than in the previous year

� Quarterly EBITA improved compared to Q2/11

� Improvement attributable to higher fleet utilisation rates, recovering markets and price levels as well as previously concluded adjustments

� Euroconstruct and VTT3 forecast over 10% construction growth in 2012 in the Baltic countries, 5% in Russia, 6% in Poland, -7% in the Czech Republic and -3% in Slovakia

� ERA4 predicts growth of 10% in equipment rental for Poland in 2012

1. Includes Estonia, Latvia, Lithuania, Poland, the Czech Republic, Slovakia and Russia. Until 31 December 2010, the name of the

segment was Central and Eastern Europe


3. Euroconstruct, June 2012 and VTT, June 2012

4. European Rental Association, ERA Convention 2012, June 2012

EBITA by quarter

10,4

10,4

9,0 10,7

0

5

10

Q1 Q2 Q3 Q4


2011

2012

-4,9 -4,5

-3,0

-5,2-4,8 -4,0

-1,5 -1,1

-2,2 -1,5

2,6 2,9

-0,8

0,7

-6

-5

-4

-3

-2

-1

0

1

2

3

4

Q1 Q2 Q3 Q4


2009

2010

2011

2012

Implementation of Must-Win-Battles,

25

Focus on profitability and cash flow

Domestic growthStart of

internationalisationInternational growth

m)

Focus from growth to profitability and cash flowTarget: Stable earnings growth through operational excellence

€ 680 m

Operational

excellence

Acquisition of

Theisen

Group (2011)

1953 20052000

€ 77 m

€ 54 m

Sales (€

Company

founded

(1953)

2011 2012 2013

Acquisition of

Cramo Group

(2006)

26

109,4 %

149,3 %

113,4 %

103,4 %

78,7 %

79,8 %

80 %

100 %

120 %

140 %

160 %

18,4 %

14,9 %

5,4 % 6,8 %5 %

10 %

15 %

20 %

25 %

19,3 %

17,6 %

11,4 %

10 %

15 %

20 %

25 %

23,4 %

16,8 %

10,2 %

38,2 %

19,6 %

10 %

20 %

30 %

40 %

50 %

Financial target realisation in 2010-13Sales growth and gearing targets achieved; Focus from growth to

EBITA-% and ROESales growth > 10% Gearing < 100%EBITA-% > 15% ROE-% > 15%

Achievement

of financial

targets in

2010-11

Group

financial

target

78,7 %

79,8 %

0 %

20 %

40 %

60 %

2007

2008

2009

2010

2011

Q2/2012

-12,1 %

-0,6 %

5,4 %

-15 %

-10 %

-5 %

0 %

2007

2008

2009

2010

2011

Q2/2012

3,9 %

7,0 %

10,5 %

11,4 %

0 %

5 %

10 %

2007

2008

2009

2010

2011

Q2/2012

-23,0 %

10,2 %

-30 %

-20 %

-10 %

0 %

2007

2008

2009

2010

2011

Q2/2012

27

Priorities in

2012-13

•Sustain profitable

growth above

target

•Further improve

financial flexibility

•Stable earnings growth through

operational excellence

**

* Calculated on a rolling 12-month basis

Targets to be achieved through Must-win battlesIn accordance with Cramo’s strategy

Must-Win Battles 2010-13 Achievements in 2011�� Objectives for 2012-13

1Renew Cramo Concept

•Cramo Rental Concept renewed successfully•Rolling out the concept underway

•Continue implementation •Continuously develop new offerings

2Implement Cramo Processes

•Unified process definitions•ERP system harmonized•Rental systems in NO and FI•BI systems renov. and impl.

•Further roll out common rental platform •Continue QSE inititiatives

Develop Cramo •Cramopol carried out •Finalise implementation of new

28

3Develop Cramo People

•Cramopol carried out•Cramo Academies arranged•Cramo Development and Dialogue framew. developed

•Finalise implementation of new HR models with focus on employee development, job rotation and best practice sharing

4Be “Best in Town”, Be “Best in Town”, Win Next Markets

•Geographical presence expanded into Germany, Austria, Switzerland and Hungary through Theisen

•Focus on implementing the “Best in town” strategy

5Drive Modular Space Growth

•Standardised offering•Cross-country support teams•Modular Space hub structure•New product concept

• Increase sale of new applications•Grow in Norway, Denmark and Eastern Europe

Actions under implementation to secure FY2012

targets

• Sales

– Targeted sales campaigns

– Performance management based on clear objectives

• Direct costs

– Targeted cost items: repair & maintenance, transports, discretionary costs

– Focused plans for selected countries

• Indirect costs

29

Short-term actions to secure FY2012 financial targets

– Reduce particularly temporary workforce

– Optimisation of depot network

– Reduce permanent employees in selected areas

• Capital costs

– Divestment of some fleet on top of normal activity

– Transfer fleet internally to growth areas

Central Europe (Theisen) transformation plan

� Cramo will modify its operations throughout Central Europe according to the

Cramo Concept and centralise its operations according to its “Best in town”

strategy

→ Increase in fleet and service offering according to the Cramo Rental

Concept in selected ”Best in town” areas

→ Closure of small unprofitable depots and opening of new depots in ”Best in

town” citiestown” cities

→ Recruitment of new dedicated resources and build up of organisation

→ Termination of operations in Switzerland � Focus on Germany and Austria

→ Adverse effect on both sales and costs during the transition period

→ Non-recurring costs of EUR 0,5 million in the first half of the year

30

Future prospectsModerate growth expected in the rental sector in 2012, but market

specific differences have increased

� In Europe there is a high level of uncertainty in the economy. The uncertainty increased during the second quarter and investment decisions are held back

� In Norway, the Baltic countries and Russia, the demand for equipment rental is still growing

� Generally, the demand situation in Cramo’s main market areas can still be described as satisfactory

� Cramo believes that in spite of the economic uncertainty,

31

� Cramo believes that in spite of the economic uncertainty, rental services will continue to be a growth industry

� The Group’s guidance for 2012 modified: “In 2012, the Group’s sales will be approximately at the same level as in 2011 and the EBITA margin will improve compared with 2011. Gearing will decrease due to positive cash flow”

� The modification has been triggered by increasing market uncertainty and the sale of the modular space production and customised modular space rental businesses in Finland

AppendixAppendix

Key figuresChange Change

EUR million (unless otherwise stated) % %

INCOME STATEMENT

Sales 161,4 161,1 0,2 % 321,4 305,4 5,3 % 679,9

EBITDA 39,6 38,2 3,7 % 75,7 63,5 19,2 % 168,7

Operating profit (EBITA) before amortisation and impairment

of intangible assets resulting from acquisitions

14,3 14,3 0,1 % 24,9 16,8 48,3 % 71,1

Operating profit/loss (EBIT) 11,4 11,7 -2,9 % 19,0 11,5 65,0 % 54,3

Profit/Loss before tax (EBT) 6,1 5,8 5,0 % 8,5 1,9 350,3 % 32,2

Profit/Loss for the period 4,7 3,4 36,8 % 6,5 -2,5 23,5

SHARE-RELATED INFORMATION

Earnings per share (EPS), EUR 0,11 0,09 22,2 % 0,16 -0,07 0,60

Earnings per share (EPS), diluted, EUR 0,11 0,08 37,5 % 0,15 -0,07 0,60

Shareholders' equity per share, EUR 10,67 10,17 4,9 % 10,83

1-12/

2011

4-6/

2012

4-6/

2011

1-6/

2012

1-6/

2011

33

Of note is that due to the rights issue completed in April 2011, the earnings per share (EPS) figures for the previous periods have been

adjusted by multiplying the numbers of shares used in the calculations by the following adjustment factor: fair value per share before exercise

of rights divided by the theoretical ex-rights value per share.

Shareholders' equity per share, EUR 10,67 10,17 4,9 % 10,83

BALANCE SHEET

Equity ratio, % 44,5 % 41,7 % 44,4 %

Gearing, % 79,8 % 91,8 % 78,7 %

Net interest-bearing liabilities 392,0 429,6 -8,8 % 389,4

OTHER INFORMATION

Return on investment, rolling 12-month, % 6,9 % 4,6 % 6,6 %

Return on equity, rolling 12-month, % 6,8 % 1,9 % 5,4 %

Gross capital expenditure (incl. acquisitions) 40,8 94,2 -56,7 % 65,1 185,5 -64,9 % 262,5

of which related to acquisitions and business combinations 0,0 41,6 -100,0 % 0,0 114,3 -100,0 % 115,4

Cash flow after investments 1,1 -53,1 102,1 % 18,2 -98,3 -55,3

Average number of personnel, FTE 2 684 2 465 8,9 % 2 580

Number of personnel at end of period, FTE 2 677 2 686 -0,3 % 2 707

Consolidated income statementChange Change

EUR (1 000) % %

SALES 161 420 161 135 0,2 % 321 410 305 352 5,3 % 679 892

Other operating income 2 247 2 374 -5,3 % 5 895 3 547 66,2 % 7 697

Change in inventories of finished goods and

work in progress

-47 -478 90,2 % 892 101 783,2 % -425

Production for own use 0 2 486 -100,0 % 3 494 3 282 6,5 % 10 302

Materials and services -53 723 -57 780 7,0 % -113 596 -112 056 -1,4 % -248 393

Employee benefit expenses -35 692 -33 351 -7,0 % -72 523 -63 935 -13,4 % -135 751

Other operating expenses -34 624 -36 198 4,3 % -69 827 -72 759 4,0 % -144 628

Depreciation and impairment on tangible

assets and assets available for sale

-25 233 -23 853 -5,8 % -50 842 -46 743 -8,8 % -97 624

1-12/

2011

4-6/

2012

4-6/

2011

1-6/

2012

1-6/

2011

34

assets and assets available for sale

EBITA 14 348 14 334 0,1 % 24 903 16 789 48,3 % 71 071

% of sales 8,9 % 8,9 % 7,7 % 5,5 % 10,5 %

Amortisation and impairment on intangible

assets resulting from acquisitions

-2 951 -2 601 -13,5 % -5 929 -5 292 -12,0 % -16 751

OPERATING PROFIT/LOSS (EBIT) 11 397 11 733 -2,9 % 18 974 11 496 65,0 % 54 320

% of sales 7,1 % 7,3 % 5,9 % 3,8 % 8,0 %

Finance costs (net) -5 254 -5 885 10,7 % -10 477 -9 609 -9,0 % -22 169

Income from joint ventures 0 0 22

PROFIT/LOSS BEFORE TAXES 6 143 5 849 5,0 % 8 498 1 887 350,3 % 32 173

% of sales 3,8 % 3,6 % 2,6 % 0,6 % 4,7 %

Income taxes -1 463 -2 427 39,7 % -2 023 -4 428 54,3 % -8 668

PROFIT/LOSS FOR THE PERIOD 4 680 3 422 36,8 % 6 475 -2 541 23 505

% of sales 2,9 % 2,1 % 2,0 % -0,8 % 3,5 %

Consolidated balance sheet30.6. 30.6. Change 31.12.

EUR (1 000) 2012 2011 % 2011

ASSETS

NON-CURRENT ASSETS

Tangible assets 624 756 603 656 3,5 % 622 214

Goodwill 167 104 171 386 -2,5 % 165 318

Other intangible assets 117 335 128 106 -8,4 % 123 250

Deferred tax assets 16 433 16 602 -1,0 % 15 312

Available-for-sale financial investments 348 362 -3,9 % 350

Shares in joint ventures 50 48

Derivative financial instruments 0 2 650 0

Trade and other receivables 1 110 3 733 -70,3 % 3 553

TOTAL NON-CURRENT ASSETS 927 134 926 496 0,1 % 930 043

CURRENT ASSETS

Inventories 16 497 17 988 -8,3 % 18 310


30.6. 30.6. Change 31.12.

EUR (1 000) 2012 2011 % 2011

EQUITY AND LIABILITIES

EQUITY

Share capital 24 836 24 835 0,0 % 24 835

Share issue 0 17

Other reserves 302 456 300 722 0,6 % 300 723

Fair value reserve 119 117 1,7 % 119

Hedging fund -6 121 538 -5 168

Translation differences 2 548 329 674,5 % 1 041

Retained earnings 117 899 91 751 28,5 % 123 604

EQUITY ATTRIBUTABLE TO SHARE-

HOLDERS OF THE PARENT COMPANY 441 736 418 293 5,6 % 445 172

Non-controlling interest 0 0

Hybrid capital 49 630 49 630 0,0 % 49 630

TOTAL EQUITY 491 366 467 923 5,0 % 494 802

35


Income tax receivables 8 130 7 424 9,5 % 5 563

Derivative financial instruments 1 495 246 507,7 % 730

Cash and cash equivalents 14 118 17 104 -17,5 % 22 532

TOTAL CURRENT ASSETS 179 931 200 447 -10,2 % 190 089

Assets available for sale 6 536 6 327 3,3 % 6 680

TOTAL ASSETS 1 113 601 1 133 269 -1,7 % 1 126 812

NON-CURRENT LIABILITIES

Interest-bearing liabilities 283 836 367 985 -22,9 % 310 511

Derivative financial instruments 8 108 467 6 775

Deferred tax liabilities 80 798 88 548 -8,8 % 85 399

Provisions 1 263 1 541 -18,0 % 1 448

Other non-current liabilities 727 5 615 -87,1 % 3 369

TOTAL NON-CURRENT LIABILITIES 374 733 464 156 -19,3 % 407 502

CURRENT LIABILITIES

Interest-bearing liabilities 122 246 78 750 55,2 % 101 422

Derivative financial instruments 1 949 842 131,5 % 1 838

Trade and other payables 117 374 117 519 -0,1 % 116 485

Income tax liabilities 5 934 4 078 45,5 % 4 763

TOTAL CURRENT LIABILITIES 247 503 201 190 23,0 % 224 508

TOTAL LIABILITIES 622 236 665 346 -6,5 % 632 010

TOTAL EQUITY AND

LIABILITIES 1 113 601 1 133 269 -1,7 % 1 126 812

Cash flow statement1-6/ 1-6/ 1-12/

EUR (1 000) 2012 2011 2011

Net cash flow from operating activities 53 379 32 357 138 496

Net cash flow from investing activities -35 212 -130 682 -193 804

Cash flow from financing activities

Change in interest-bearing receivables 2 516 111 244

Change in finance lease liabilities -19 852 -17 475 -32 944

Change in interest-bearing liabilities 7 226 15 094 -6 964

Hybrid capital -6 000 -6 000 -6 000

Proceeds from share options exercised 1 717 7 262 7 279

36

Proceeds from share options exercised 1 717 7 262 7 279

Proceeds from share issue 97 397 97 397

Non-controlling interest -76 -76

Dividends paid -12 374 -3 163 -3 163

Net cash flow from financing activities -26 767 93 150 55 773

Change in cash and cash equivalents -8 600 -5 175 465

Cash and cash equivalents at period start 22 532 22 313 22 313

Translation differences 186 -34 -246

Cash and cash equivalents at period end 14 118 17 104 22 532

Segment performanceChange Change

SALES, EUR (1 000) % %

Finland 25 606 31 271 -18,1 % 54 954 59 461 -7,6 % 127 565

Sweden 75 799 72 488 4,6 % 153 255 140 589 9,0 % 308 949

Norway 19 121 17 378 10,0 % 39 919 37 582 6,2 % 79 265

Denmark 7 281 7 750 -6,1 % 15 470 14 007 10,4 % 34 965

Central Europe 18 238 19 945 -8,6 % 30 019 30 556 -1,8 % 71 213

Eastern Europe 16 704 14 999 11,4 % 30 574 27 868 9,7 % 66 575

Inter-segment sales -1 329 -2 695 50,7 % -2 782 -4 712 41,0 % -8 640

Group sales 161 420 161 135 0,2 % 321 410 305 352 5,3 % 679 892

Change Change

1-12/

2011

4-6/ 4-6/ 1-6/ 1-6/ 1-12/

4-6/

2012

4-6/

2011

1-6/

2012

1-6/

2011

37

Change Change

EBITA, EUR (1 000) % %

Finland 3 685 4 248 -13,3 % 6 634 6 424 3,3 % 20 238

Sweden 11 561 13 566 -14,8 % 24 442 22 911 6,7 % 58 047

Norway 697 -1 150 160,6 % 1 620 -735 320,4 % 857

Denmark -547 -646 15,3 % -1 992 -2 281 12,7 % -2 132

Central Europe 929 1 640 -43,4 % -3 385 451 -850,6 % 3 708

Eastern Europe 672 -1 524 144,1 % -129 -3 741 96,6 % 1 708

Non-allocated capital gains and other income 2 196

Non-allocated Group activities -2 719 -1 904 -42,8 % -4 801 -6 388 24,8 % -11 756

Eliminations 70 103 -32,0 % 319 148 115,5 % 402

Group EBITA 14 348 14 334 0,1 % 24 903 16 789 48,3 % 71 072

4-6/

2012

4-6/

2011

1-6/

2012

1-6/

2011

1-12/

2011

Finland19,2 %

Denmark

Central Europe

9,9 %

Eastern Europe

9,0 %

Sales by business segment

EUR 321,4 million EUR 305,4 million

Sales 1-6/2012 Sales 1-6/2011

*

*

Finland17,0 %

Denmark

Central Europe

9,3 %

Eastern Europe

9,4 %

Sweden45,3 %

Norway12,1 %

Denmark4,5 %

38

* Business Segment Central Europe was formed as of February 1, 2011 as a result of the acquisition of the Theisen Group. The

Business Segment includes Cramo’s operations in Germany, Austria, Switzerland and Hungary. Central Europe figures are included

only for February-June in 2011

Sweden47,3 %

Norway12,3 %

Denmark4,8 %

72,6 77,3

78,5 82,0

97,6

93,7

88,9 94,6 99,2

101,0

111,9

106,8

94,5

97,5

96,3 102,8

86,1 92,9

88,7

87,7

87,6

103,2

100,8

102,7

81,6

98,3

50 %

60 %

70 %

80 %

90 %

100 %

80

100

120

140

Share of re

ntal (%

of to

tal order book)

Order book (EUR m)

Modular space order book Order book increased clearly from Q1/12

0 %

10 %

20 %

30 %

40 %

0

20

40

60

Q1/06

Q2/06

Q3/06

Q4/06

Q1/07

Q2/07

Q3/07

Q4/07

Q1/08

Q2/08

Q3/08

Q4/08

Q1/09

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

Share of re

ntal (%

of to

tal order book)

Order book (EUR m)

Rental Sales

39

*In Q1/2010 there was an external sale of some modules and in Q1/2012 the sale of modular space production and customised modules

rental businesses in Finland.

interim report 1.1.2012 –30.6 - cramo group€¦ · interim report q2/2012 group performance...

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