15th August 2019

CRAMOH1 2019 PRESENTATION

Leif Gustafsson, CEO

Aku Rumpunen, CFO

FULL FOCUS ON EQUIPMENT RENTAL GOING FORWARD

2

30

June

Adapteo demerger successfully completedCapture the full potential of the focused

equipment rental business

BENEFITS OF THE PARTIAL DEMERGER FOR CONTINUING BUSINESS

3

Clear business structure and solid financial position

Management focus on ample opportunities to improve

operational efficiency, competitiveness and value creation

Increased opportunities and attention to optimise profitability

and cash generation

Solid customer base and European platform empowering

continued investments into development of the ER business

Stand-alone company with growth ambition providing a clarified

investment case with different risk and growth profile

4

▪ Net sales: 153.1 (156.1) MEUR

▪ -1.9% in reported currencies

▪ -0.4% in local currencies

▪ -0.4% organic sales growth

▪ Comparable EBITA*: 15.3 (22.4) MEUR or 10.0% (14.3%) of sales

▪ EBITA*: 14.4 (22.4) MEUR or 9.4% (14.3%) of sales

▪ Gross capex: 30.0 (55.5) MEUR

▪ Operative cash flow: 36.0 (37.8) MEUR

▪ Cash flow after investments: 23.7 (8.3) MEUR

Q2/2019KEY FIGURES

*Cramo’s continuing operations. 2018 EBITA including IFRS16 impact

INITIATION OF PERFORMANCE IMPROVEMENT ACTIONS

▪ In order to right-size the Group’s cost structure upon demerger of Adapteo and to ensure the Group’s profitability in the short-term, various performance improvement actions are initiated and carried out. These include:

▪ Group structure optimisation

▪ Specific sales efforts

▪ Cost reductions

▪ Capital efficiency measures in all countries

▪ In addition, investments in growth will continue to increase our market share and optimise our profitability and cash generation

▪ The new strategy finalized to ensure Cramo’scompetitiveness in the long-term

▪ More information about the new strategy, group-wide performance enhancement programme and the new financial targets will be presented during our Capital Markets Day on 12 September 2019.

Targeted run-rate cost savings

€10-12m

Estimated timeline for full effect

Year 2020

Estimated restructuring costs in 2019

€3-5m

2019E 2020E

Sweden -3.2 % -2.9 %

Finland -1.9 % -2.6 %

Norway 4.7 % 1.9 %

Central Europe 0.6 % -0.3 %

Eastern Europe 7.8 % 3.9 %

90

95

100

105

110

115

120

125

130

135

140

2015 2016 2017 2018 2019 2020 2021

Inde

x, 2

015=

100

Construction output outlook

Sweden Finland Norway Central Europe Eastern Europe

CONSTRUCTION MARKET GROWTH STILL EXPECTED IN NORWAYAND EASTERN EUROPE

Sources: Euroconstruct and Forecon

▪ According to Euroconstruct

estimates the construction market

growth is seen to be levelling out

in Sweden, Finland and Germany

▪ Growth in Norway is still seen to

be strong – main driver civil

engineering

▪ Growth in Eastern Europe is also

seen to continue strong – Estonia

growth levelling out whereas

Poland and Lithuania growth

continues strong

6

143.8156.1 159.6

172.4

148.4 153.1

4.4 % 3.0 % 3.1 %

6.5 %

3.2 %

-1.9 %-4%

-2%

0%

2%

4%

6%

8%

120

130

140

150

160

170

180

Mar Jun Sep Dec Mar Jun

2018 2019

Total sales Sales growth q-o-q

14.922.4

31.725.8

11.815.3

10.4 %

14.3 %

19.9 %

15.0 %

8.0 % 10.0 %

0%

5%

10%

15%

20%

25%

0

5

10

15

20

25

30

35

Q1 Q2 Q3 Q4 Q1 Q2

2018 2019

Comparable EBITA Comparable EBITA margin-%

EUR millionEUR million

Q2 SALES AND COMPARABLE EBITACOMPARABLE EBITA* BELOW LAST YEAR’S LEVEL

7

-0.4%**

* Comparison period including IFRS16 impact

** in local currencies

8

BUSINESS

SEGMENTS

8

92.2 91.2

86.9

100.1

89.4

84.1

75

80

85

90

95

100

105

Q1 Q2 Q3 Q4 Q1 Q2

2018 2019

Sales EUR million

17.1 17.4 19.4 20.915.4

12.0

16.8 %17.2 % 17.2 % 16.9 %

16.4 %15.3 %

14%

15%

16%

17%

18%

0

5

10

15

20

25

Q1 Q2 Q3 Q4 Q1 Q2

2018 2019

Comparable EBITA Comparable ROCE

EUR million

• Postponed large industrial projects into H2 in Sweden,

unfavorable SEK fx-rates and fewer business days in Q2 vs

2018 impacted negatively on sales performance against last

year. Second quarter sales in Norway were on a good level

supported by improved utilisation and increased investments

• In Sweden various performance improvement actions, like

cost base optimisation, fleet and operational efficiency

improvements and sales measures are on-going to secure

profitability going forward.

• According to Forecon, equipment rental market is expected to

decrease by 1% in 2019 in Sweden and and increase by 2% in

Norway.

• In Sweden market growth is levelling out. The decline in new

building construction (residential and non-residential) is

expected to continue, but in the industrial segment good

potential is seen. In Norway main market growth drivers are

civil engineering and hospitals (public spending).

SCANDINAVIATIMING OF PROJECTS IN SWEDEN AFFECTED NEGATIVELY ON PROFITABILITY, GOOD PERFORMANCE CONTINUED IN NORWAY

Scandinavia has operations in Sweden and Norway with capital

employed of MEUR 417 at the end of Q2 2019.

All figures exclude IACs and are presented as comparable key figures including IFRS 16 impact

* Organic growth reported in local currencies 9

-7.8%

Organic growth

-5.4%* vs LY

32.735.6

38.9 39.8

33.5 35.7

0

10

20

30

40

50

Q1 Q2 Q3 Q4 Q1 Q2

2018 2019

Sales EUR million

2.74.7

8.7 7.5

2.04.2

11.8 % 11.3 % 10.1 % 10.1 % 9.8 % 9.5 %

0%

4%

8%

12%

16%

0

2

4

6

8

10

Q1 Q2 Q3 Q4 Q1 Q2

2018 2019

Comparable EBITA Comparable ROCE

EUR million

• Q2 sales growth was modest and were supported by

operations in Estonia and Lithuania. Organic sales growth

for the second quarter was flat and came to 0.2%.

• Q2 comparable EBITA 0.5 MEUR below last year’s level.

Higher direct costs in Finland diluting segments profitability.

• In Finland cost base optimisation, fleet and operational

efficiency measures and sales actions are ongoing. The

business transformation project in Finland has been

concluded and results should be visible from H2 2019

onwards.

• Forecon estimates Finland rental market to decline in H2

2019, whereas in other countries in the segment market

growth is still estimated

FINLAND AND EASTERN EUROPESTRONG PERFORMANCE IN EASTERN EUROPE, IN FINLAND PROFITABILITY BELOW EXPECTATIONS

Organic growth

+0.2%* vs LY

+0.1%

Finland and Eastern Europe has operations in four countries with

capital employed of MEUR 223 at the end of Q2 2019.All figures exclude IACs and are presented as comparable key figures including IFRS16 impact

* Organic growth reported in local currencies 10

18.8

29.3

33.7 32.5

25.5

33.4

0

10

20

30

40

Q1 Q2 Q3 Q4 Q1 Q2

2018 2019

Sales EUR million

-1.7

2.85.7

2.6

-2.1

1.9

4.5 % 4.2 %

5.1 % 5.2 %4.6 %

3.9 %

0%

2%

4%

6%

-3

0

3

6

9

Q1 Q2 Q3 Q4 Q1 Q2

2018 2019

Comparable EBITA Comparable ROCE

EUR million

• The second quarter sales growth was mainly attributable to

KBS Infra

• Q2 comparable EBITA was EUR 1.9 (2.8) million with a

5.6% (9.6%) margin. Main reason for declined profitability

was change in sales mix and extraordinary costs related to

the organisational transformation of KBS Infra decreased

the segment’s profitability by EUR 0.7 million

• The underlying performance in Germany has not reached

our targets. Various focused performance improvement

actions such as cost base optimisation, fleet and

operational efficiency measures and sales actions are

ongoing to increase the profitability of business.

• Euroconstruct estimates that total construction output

growth in Germany and Austria will slow down

CENTRAL EUROPESALES GROWTH DRIVEN BY INDUSTRIAL PROJECTS

Organic growth

+14.0%* vs LY

Central Europe has operations in five countries with capital

employed of MEUR 185 at the end of Q2 2019.All figures exclude IACs and are presented as comparable key figures including IFRS 16 impact

* Organic growth reported in local currencies

+14.0%

11

GROUP

PERFORMANCE

Q2 2019

12

156.1 153.1

-0.7 -2.3

0

25

50

75

100

125

150

175

Q2/2018 Acquisitions Organicgrowth

FX impact Q2/2019

Group Sales drivers Group

299.9 301.5

6.3 1.2 -5.9

0

50

100

150

200

250

300

350

H1/2018 Acquisitions Organicgrowth

FX impact H1/2019

Group Sales drivers Group

EUR millionEUR million

GROUP Q2 AND H1 SALES GROWTH VS LY

13

-1.9%

-0.4%*

-0.4%**

+0.5%,

+2.6%*

+0.4%**

* in local currencies

** organic growth

22.4

15.3

-5.4

-0.5 -1.0 -0.2

0

5

10

15

20

25

Q2 2018 Scandinavia Finland andEastern Europe

Central Non-allocated andelim

Q2 2019

Group Business segments Group

Comparable EBITA

EUR million

COMPARABLE EBITA Q2 VS LY

14

TIMING OF LARGE INDUSTRIAL PROJECTS IN SWEDEN HAD MATERIAL IMPACT ON EBITA

* Comparison period including IFRS16 impact

59

.3

65

.5

29

.6

32

.6

19

.8 %

21

.7 %

18

.9 %

21

.3 %

0

50

100

150

200

250

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

2018 2019 2018 2019

Jan-Jun Q2Depreciations (right axis) Depreciation of sales (left axis)

11

4.6

11

8.2

59

.2

59

.6

38

.2 %

39

.2 %

37

.9 %

38

.9 %

0

50

100

150

200

250

300

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

2018 2019 2018 2019

Jan-Jun Q2Indirect costs (right axis) Indirect cost ratio (left axis)

EUR million

97

.9

98

.5

49

.9

49

.8

32

.7 %

32

.7 %

32

.0 %

32

.5 %

0

20

40

60

80

100

120

140

160

180

200

2018 2019 2018 2019

Jan-Jun Q2

0%

5%

10%

15%

20%

25%

30%

35%

40%

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

EUR million EUR million

59

.3

65

.5

29

.6

32

.6

19

.8 %

21

.7 %

18

.9 %

21

.3 %

0

50

100

150

200

250

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

2018 2019 2018 2019

Jan-Jun Q2

Depreciations (right axis) Depreciation of sales (left axis)

11

4.6

11

8.2

59

.2

59

.6

38

.2 %

39

.2 %

37

.9 %

38

.9 %

0

50

100

150

200

250

300

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

2018 2019 2018 2019

Jan-Jun Q2

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

EUR million

97

.9

98

.5

49

.9

49

.8

32

.7 %

32

.7 %

32

.0 %

32

.5 %

0

20

40

60

80

100

120

140

160

180

200

2018 2019 2018 2019

Jan-Jun Q2

0%

5%

10%

15%

20%

25%

30%

35%

40%

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

EUR million EUR million

COST BASE DEVELOPMENTDIRECT COST 1 INDIRECT COST 2

* 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”

DEPRECIATIONS

15

0.20

0.33

0.54

0.32

0.13

0.20

0.00

0.10

0.20

0.30

0.40

0.50

0.60

Q1 Q2 Q3 Q4 Q1 Q2

2018 2019

EUR

COMPARABLE EPS DEVELOPMENT

16

LEVERAGE AND COMPARABLE ROE%

17

*The impact of receivables (EUR 29.5 million) from demerged Adapteo Plc excluded from net debt. Will be settled during Q3/2019

**) Historical net debt / EBITDA Q1-Q4/2018 illustrative for continuing operations

417.8

443.8 447.4

428.5418.8

458.1

2.01

1.92

2.052.08

1.99

1.92

2.15

1.70

1.80

1.90

2.00

2.10

2.20

375

400

425

450

475

Q1 Q2 Q3 Q4 Q1 Q2

2018 2019

Net

deb

t / E

BIT

DA

Net

deb

t (E

UR

mill

ion)

Net debt Comparable net debt* / EBITDA Net debt / EBITDA

LEVERAGE ROE %

15.3 %15.8 %

14.0 %

10%

12%

14%

16%

18%

Q4 Q1 Q2

2018 2019

Comparable ROE%

8.8

37.8

18.9

36.0

-38.7-29.4

-12.7 -12.4

-50

-40

-30

-20

-10

0

10

20

30

40

50

Q1 Q2 Q1 Q2

2018 2019

Cash flow from operations Cash flow from investing activities Cash flow after investments

EUR million

QUARTERLY CASH FLOW

18

*

*

-29.8

8.3 6.1

23.7

*Cash flow from continuing operations (2018 excluding IFRS16 impact)

CASH FLOW AFTER INVESTMENTS AHEAD OF LAST YEAR

CONCLUSION

AND OUTLOOK

2019

19

MARKET OUTLOOK

Scandinavia• Forecon estimates that the rental market in 2019 will

decrease 1% in Sweden and grow 2% in Norway

• The construction market in 2019 is estimated to decrease by

3.2% in Sweden and increase by 4.7% in Norway

Finland and Eastern Europe• The rental market in Finland and Estonia is estimated to

remain at 2018 level in 2019 while a 6% growth is expected in

Lithuania

• The construction market in 2019 is expected to decrease by

1.9% in Finland and by 2% in Estonia. Lithuania rental market

is estimated to grow by 2% in 2019

Central Europe• The rental market growth estimates in Central Europe

countries vary between 4 and 6%

• Construction market growth estimate for 2019 is 0.2-1.8% in

Germany and Austria and more rapid in other Central Europe

countries

20

CONCLUSIONS

• In order to right-size the Group’s cost structure upon

demerger of Adapteo and to ensure the Group’s profitability

in the short-term, various performance improvement actions

are initiated and carried out, including:

▪ Group structure optimisation,

▪ Specific sales efforts,

▪ Cost reductions,

▪ Capital efficiency measures in all countries

• The targeted run-rate of cost savings is EUR 10-12 million

with full effect for 2020

• Cramo Capital Markets Day to be held on 12 September

2019, where new information regarding the new strategy,

group-wide performance enhancement program and new

financial targets are presented

21