NEW GROUP STRATEGY 2020:

Shape & Share

Capital Markets Day, February 2017

Leif Gustafsson

President and CEO

1

12.00-12.05 Welcome & Introduction Mattias Rådström, SVP Communication, Marketing and IR

12.05-12.45 New group strategy Shape & Share

Leif Gustafsson, President and CEO

12.45-13.15 Financial performance & targets Aku Rumpunen, CFO

13.15-14.00 Modular Space

Strategy and growth ambitions

Petri Moksén, SVP Modular Space

14.00-14.30 Enable people to perform Petra Schedin Stergel, SVP HR

14.30-15.00 Coffee break

15.00-15.30 Improved fleet efficiency Martin Holmgren, SVP Fleet Management

15.30-16.00 Cramo Customer Centric program and Digital concept

Jonas Pärssinen, Director Business Development

Elina Aalto, eChannel Manager

16.00-16.45 Equipment Rental

Panel interview:

Central Europe, Eastern Europe and

Scandinavia

Dirk Schlitzkus, EVP Central Europe

Tatu Hauhio, EVP Eastern EuropePeter Bäckström, EVP Scandinavia

16.45-17.00 Closing and summary Leif Gustafsson, President and CEO

17.00-18.00 Closing drinks and snacks

Agenda

WWW.CRAMOGROUP.COM2

Cramo Group today1

Strategy 2020 – Shape & Share3

Agenda

2 Megatrends & growth drivers

3

#1in the Nordics (MS)

Cramo is in a strong position

14countries

324depots

15countries

230,000

rental units

150 000

#2in Europe

150,000

customers

Cramo Fortrent

Russia

Denmark

GermanyPoland

CzechRepublic

Austria Hungary

Slovakia

Belarus

Lithuania

Latvia

Estonia

Norway

Sweden

Finland

Bulgaria

Slovenia

Croatia

Bosnia and

HerzegovinaSerbia

Macedonia

Albania

Kalinin-

grad

Romania

Moldova

Ukraine

4

Sales, MEUR

712.3

6.6%

Comparable EBITA, MEUR

111.1

27.9%

Comparable EPS, EUR

1.70 ROE, %

14.9

Sales per geographical split

Profitable growth – and a mix with large potential

50%

18%

9%

4%

11%

7%

Sweden Finland Norway Denmark CE EE

5

Two stand-alone divisions

Modular Space Equipment Rental

6

7

The Cramo Rental Concept

A wide range of rental-related

SERVICES

ranging from different site services, such as

proactive site monitoring, construction site

logistics, dust-control and weather-sheltering, to

safety-related services, equipment and training.

INDUSTRIAL PROJECTS

including infrastructure, offshore and mining.

Tailor-made total

RENTAL SOLUTIONS

for more efficient, safe and environmentally

sound construction projects.

MODULAR SPACE

SOLUTIONS

matching the standards

of permanent structures

from classrooms and

daycare facilities to

high-tech offices and

accommodation.

SITE HUTS

adaptable for

various purposes

and capacity needs.

COMPREHENSIVE

RANGE OF TOOLS

and complete package

solutions in building

equipment.

Modern,

comprehensive fleet of

CONSTRUCTION

EQUIPMENT

for any type of assignments,

from major road projects to

small-scale jobs.

ACCESS

EQUIPMENT

with comprehensive

safety solutions for

working at heights.

Growth in new services and

solutions

Growth of rental and

modular space in new

sectors

Increasing rental

penetration, outsourcing

Internet of things, intelligent

life-cycle follow-up

Multichannel connectivity

with customers

7

Cramo Group today1

Strategy 2020 – Shape & Share3

Agenda

2 Megatrends & growth drivers

8

What is going on in the world?

9

50billion

600cities 70%

33%1.2billion

Generation

Connected

Urbanisation

Sustainability

Digitalisation

10

Business Environment

CSR and

sustainability are

becoming core

values

Competitors are

more active, new

ones will come and

existing ones will

develop

Will increasing

demands close the

gap between

permant and

temporary

buildings?

Digitalisation:

Creates both

opportunities and

challenges

Transparency -

Customers more

aware of cost/value

If you are not a

shaper you are a

follower

and you have to

rely on others to

shape

your tomorrow

11

Underlying drivers support propensity to rent

Outsourcing - Increasing

rental penetration

Growth in rental-

related services

Switch from manpower

to machine

Growth in renovation

construction in mature

construction markets

MEGATRENDS

Migration

Urbanisation

Ageing

Globalisation

Digitalisation

Sustainability

Environmental and

climate awareness

Increased energy

efficiency

requirements

Accelerating technological

development

Global and local

demographic changes

More stringent

environmental laws and

international agreements

to mitigate climate change

SOCIETY PUBLIC SECTOR CONSTRUCTION OTHER INDUSTRIES

Growth in new services and

solutions

Growth of rental and

modular space in new

sectors

Increasing rental

penetration, outsourcing

Internet of things, intelligent

life-cycle follow-up

Multichannel connectivity

with customers

EQUIPMENT

RENTAL

DRIVERS

MODULAR

SPACE GROWTH

DRIVERS

Economic benefits,

change in mindset

Greater preference

for total solutions

Need to improve

productivity

Quality problems

(mold and moisture)

in construction

Ageing of buildings

Dynamic, changing

environment

creates demand

Site-specific space needs

during renovation periods

Fluctuating space needs:

daycares, schools,

accommodation

End users increasingly require

permanent-like quality

Need for energy-efficient

solutions

12

Cramo Group today1

Strategy 2020 – Shape & Share3

Agenda

2 Megatrends & growth drivers

13

Do you want to be a shaper or a follower?

Do you want to share?

14

PurposeWhy do we exist?

VisionWhat do we want to be?

MissionWhat do we want to accomplish?

StrategyOur plan to reach vision, mission and purpose

Focus areasHow we drive our strategy

ValuesOur common platform and foundation

Strategy: Shape & Share

15

We will capture the potential in our markets

• We enable Cramo people to achieve top

performance

• We significantly stretch our core business

models

• We rapidly grow Modular Space in chosen

European markets

• We establish game changing offerings in

sharing resources

Strategy: Shape & Share

We shape our

We share

• Industry

•Offerings

•Organisation

•Attitudes

•Resources

•Best Practices

• Ideas

•Values

16

The roadmap is clear

AlignImplementing common processes and tools

Living the Cramo Story

Operational efficiency

OptimiseShaping the business structure and model

Enhancing the performance culture

Creating a digital concept

GrowthBuilding a new footprint in chosen markets

Targeting organic growth

Evaluating potential acquisitions target companies

17

Key focus areas

Enable People

to PerformStretch business

models

Game-changing

offerings

Secure resources

in Modular Space

& capture potential

in Germany

18

We enable Cramo people to achieve

top performance

The Cramo future starts with the development of our culture

and people.

We strive to have a culture build on pride in performance and

passion for improvements. We have a clear understanding of

roles and responsibilities throughout the organisation. We work in

teams and focus on customer satisfaction.

We use digital tools in our daily work and understand the value

of ecommerce, mobility, internet of things.

By 2020 Cramo will attract the best people. We hire for attitude

and train for skills. We share best practises and grow our people

by job rotation and continuous competence development.

Develop

People’s Core

Competences

Root

Performance

Culture

Drive Cramo

Story

Roll-out

Cramo Care

CSR program

1

19

We significantly stretch our core

business models

We will look for opportunities both in the borderland to our

current offerings and business model, as well as totally new ways

of creating value with our organisation and customers.

We nurture a truly innovative culture in our organisation.

– Create an independent organisation to drive the

innovations and new business development,

– Enhance the innovation harvesting in our current

organisation, searching for and gathering good ideas and

possibilities from our staff.

– Test and possibly implement the innovations in a fast trial

and error method utilising an established Proof of Concept

process.

By 2020 we have created new business models and concepts

which can and will shape the future of construction machine

rental business.

2Establish

Cramo

Innovation

Lab

Beat Cramo

Business

Model

20

We establish game changing

offerings in sharing resourcesBy differentiating our offerings and pricing to different

customer segments and behaviour we will sharpen our go

to market activities and deliver more spot-on offers

based on customers’ needs.

We will restructure our logistic network based on the

segmentation and customer offerings to enable precision

and efficiency in ordering and delivering processes. We

focus on value creating items that our customers

perceive, using our depots, digital and sales channels to

strengthen and clarify our offers to the market.

By 2020 Cramo has a new structure that is based on

efficient internal processes and set up as well as being

customer oriented; “the right products and solutions for

the right customers at the right time and to the right price”.

3Differentiate

Segment

Offerings

Roll out new

Order &

Delivery

Platform

Shape

Cramo Brand

21

In order to pursue strong organic growth Cramo Modular

Space needs to increase its resources – both personnel,

product and network.

We change the game plan: our delivery channels are easy

to understand and simple to use. Our process and

organisation supports our customer operations and allows

us to deliver projects fast and with high quality – we even

aim to exceed our customers’ expectations.

We will better be able to predict and estimate our near

future need for different resources. Our systems are

supporting us in our actions and decisions. We can adjust

our production capacity quickly and cost efficiently

according to the market demands.

By 2020 we have harmonised our sourcing and purchasing

operations which allow us to increase our efficiency and

improve our timing of the needed capital.

We break new grounds in

Modular Space…4Enable

people to

perform

Simplify

delivery

platform

Shape

scalable

production

capacity

22

Central Europe, and Germany especially, is the main

organic growth area for Modular Space.

We will expand our offering both geographically as

well as with all products and segments in the region.

We will build a strong network of our own sales

offices, hubs and warehouses, supported by well

working sub-contractors. We harmonise our

processes, systems and operations to get scale

benefits.

In order to even boost our growth plans, we will carry

through few acquisitions. We will integrate the new

organisations systematically to Cramo Adapteo.

…and capture the potential in

GermanyExpand in

line with

our current

offering

Execute

additional

growth

through

M&A

5

Invest to a

comprehensive

network

23

Way forward to capture potential

Align,

optimise,

grow

Leading

position

2divisions

Enable

people

to

perform

Innovation

24

Conclusion• New strategy ”Shape & Share”

• Two stand alone divisions

• Align, optimise, grow

• New financial and non-financial targets

25

Financial

performance &

targetsCapital Markets Day, February 2017

Aku Rumpunen

CFO

26

Financial performance 2013-20161

3

Agenda

2

Financial targets 2017-2020

Segment structure and market outlook

27

Sales growth and profitability improvement

Sweden

ER: #1

MS: #1

103 104 111124

19 20 22 28

18,8%

19,6%

20,2%

22,0%

15%

16%

17%

18%

19%

20%

21%

22%

23%

0

50

100

150

200

250

300

350

400

Finland

ER: #2

MS: #1

317 313331

356

55 56 62 74

17,5%17,8% 18,6%

20,7%

15%

16%

17%

18%

19%

20%

21%

22%

23%

0

50

100

150

200

250

300

350

400

2013 2014 2015 2016

Sales, EBITA & EBITA marginmEUR

Note: Numbers presented as comparable EBITA and EBITA margin

28

In Norway solid profitability with sliding sales, in Denmark

profitability improvement

29 30 28 32

0,3-1

2 40,1%

-4,0%

6,6%

12,6%

-5%

0%

5%

10%

15%

-20

0

20

40

60

80

100

2013 2014 2015 2016

Norway:

ER: #3

MS: #4

Denmark

ER: #5

MS: #1

9183

70 67

7 4 5 5

7,3%

5,4%

7,7%7,7%

0%

5%

10%

15%

0

20

40

60

80

100

Sales, EBITA & EBITA marginmEUR

Note: Numbers presented as comparable EBITA and EBITA margin

29

Central Europe turned profitable, while stable development

in Eastern Europe

75 78 77 79

-1-6 -2

4-1,4%

-7,7%

-3,2%

5,0%

-10%

-5%

0%

5%

10%

15%

20%

-20

0

20

40

60

80

100

2013 2014 2015 2016

Central

Europe

DE: #4

AU: #2

Eastern

Europe#2 in Baltics, and

one of the leading

rental companies

in Poland, Czech

Republic and

Slovakia

53 50 51 50

8 6 6 6

15,5%

12,3% 12,3%12,2%

0%

5%

10%

15%

20%

0

20

40

60

80

100

Sales, EBITA & EBITA marginmEUR

Note: Numbers presented as comparable EBITA and EBITA margin

30

578 560 568595

8353 66 90

14%

9%12% 15%

0%

5%

10%

15%

20%

25%

30%

35%

0

100

200

300

400

500

600

700

81 93 100 118

26 27 30 31

32%29% 30% 26%

0%

5%

10%

15%

20%

25%

30%

35%

0

100

200

300

400

500

600

700

Equipment

Rental

Modular

Space

Financial performance by business divisions

2013 2014 2015 2016

mEUR Sales, EBITA & EBITA margin

Note: Numbers presented as comparable EBITA and EBITA margin

31

1,0

1

0,9

1 1,1

3

1,5

4

0,6

0

0,5

5

0,6

5

0,7

5

13

14

15

16

72,9

%

84,7

%

75,1

%

74,5

%

13

14

15

16

8,3

%

8,3

% 10,9

%

14,9

%

13

14

15

16

Financial targets from previous strategy period

achieved

Profitability

EBITA-% > 15 % of

sales over a

business cycle

Gearing

Gearing maximum

100 %

Sales

Sales growth faster

than the market

Return on equity

ROE > 12 % over a

business cycle

Profit distribution

Profit distribution

policy: stability, with

appr. 40 % of EPS

EPS DPS

Target Level Target Level

Target Level

Note: EBITA margin and ROE presented before items affecting comparability.

* ERA market report 2015-2016 with constant 2012 FX rates in markets in question.

12,2

%

11,2

%

13,0

% 15,6

%

13

14

15

16

Target

Level

2,9

%

3,1

%

Rentalmarket*

Cramocomparablesales growth

CAGRs 13-16

32

Financial performance 2013-20161

3

Agenda

2

Financial targets 2017-2020

New segment structure and market outlook

33

Net sales (mEUR)

EBITA (margin-%)

379

65 (17%)

New segment structure and financials 2016

ER ScandinaviaER Finland and

Eastern EuropeModular SpaceER Central Europe

ROCE %

17%

Net sales (mEUR) Net sales (mEUR) Net sales (mEUR)

EBITA (margin-%)

22 (16%)

ROCE %

EBITA (margin-%)

4 (5%)

ROCE %

EBITA (margin-%)

31 (26%)

ROCE %

139 79 118

12% 4% 11%

FORTRENT

Numbers presented as comparable EBITA, EBITA margin and comparable ROCE %

34

FINLAND

SWEDEN

GERMANY

NORWAY

ER FINLAND

MS FINLAND

Sales disclosed from largest countries by business division

ER SWEDEN

MS SWEDEN

ER GERMANY

MS GERMANY

ER NORWAY

MS NORWAY

98

31

299

58

62

9

60

7

2016 sales (mEUR)

35

Rental penetration (%)

Construction

market

(BEUR)

Rental

Market

(BEUR) 2.9

Economical indicators and market outlook

ER ScandinaviaER Finland and

Eastern EuropeModular SpaceER Central Europe

Construction

market

(BEUR)110

Rental penetration (%)

0.7

90Rental penetration (%)

Market position

Construction

market

(BEUR) 370

#3-5

1.2

#1 Nordics

Construction market growth (%),

Euroconstruct Dec 2016

Rental market growth (%), ERA June 2016

3,6

%

2,2

%

2,5

%

2,7

%

1,6

%

3,1

%

4,8

%

4,4

%

5,3

%

2,1

% 2,5

%

2,3

%

2,0

%

1,2

% 0,6

%

3,7

%

1,7

%

2,5

%

2.6

Rental

market

(BEUR) 0.6Rental

market

(BEUR) 4.5

2016E 2017F 2018F2016E 2017F 2018F2016E 2017F 2018F

Share of sales from public

sector

Urbanisation rate in EU*

>60%

6,9

% 8,0

%

Organic rentalorderbook growth

Organic rentalsales growth

GAGR 14-16

1990 2014 2050E

70% 73% 82%

*) World urbanisation prospects 2014, United Nations

36

Financial performance 2013-20161

3

Agenda

2

Financial targets 2017-2020

Segment structure and market outlook

37

Fleetefficiency

People perfor-mance

Innovation

More out of engine

Enable people to

Perform

Capturing operational

excellence

Simplifying customer

offerings

Shaping the future

38

Enable people to

Perform

Secure resources

Capture potential in

Germany

Shaping the future

Equipment Rental Modular Space

38

Specific financial targets for two business divisions to

better drive growth & returns

Profitability

EBITA-% > 15 % of

sales over a

business cycle

Debt leverage

Gearing maximum

100 %

Sales

ROE > 12 % over a

business cycle

Profit distribution

Stability, with appr. 40

% of EPS

Sales growth faster

than the market

STRATEGY

2013-2016SHAPE & SHARE

2017-20

Individual ROCE

targets for ER and MS

GROUP ROE target

NET DEBT / EBITDA

Different sales targets

for ER and MS

Pay-out ratio

Two individual business models

ROCE better target measure for

capital intensive businesses

Leverage strong balance sheet, net

debt / EBITDA better measures the

debt paying capacity

39

Organic sales growth

> market

ROCE > 14.5%

Financial targets for Cramo Group 2017-2020

Equipment Rental Modular Space

Net Debt / EBITDA < 3x

ROE > 15%

Dividend payout ratio ~40%

GROUP

Double digit organic rental sales

growth

ROCE > 12.5%

* Financial targets: on average during 2017- 2020

* ROCE = EBIT / capital employed (average)40

14,0 %

12,7 % 12,4 %

11,1 %

12,5 %

2013 2014 2015 2016 2017-20

MS ROCE Target Avg. 2013-16

7,3 %6,5 %

9,2 %

13,6 %

14,5 %

9,1 %

2013 2014 2015 2016 2017-20

ER ROCE Target Avg. 2013-16

ROCE targets to drive efficient capital allocation to

capture return and growth potential

Equipment Rental Modular Space

41

8,3 % 8,3 %

10,9 %

14,9 %

15,0 %

12,0 %

2013 2014 2015 2016 2017-20

Comparable ROE Target 2017-20 Target 2013-16

Return on equity target increased to 15 %

• ROE target increased by

300 basis points from

previous target

• Target increased based

on higher targeted ROCE

by two business divisions

ER / MS

42

Strong balance sheet enables to grow when

returns available

• Debt capacity for growth and M&A when returns

are available

• Financial headroom > EUR 250m

NET DEBT / EBITDA

• Complementing services, capabilities, products

and know-how

• Entry to new attractive markets

• Integration and cultural assessment

Strategic fit

• Fulfilling financial targets i.e. return on capital

employed

• Shareholder value creative

Valuation and returns

Capacity to grow

2,10

2,30

1,98

1,77

3,00

2013 2014 2015 2016 2017-20

Net debt / EBITDA Group

Net debt / EBITDA Target

43

Debt maturity structure and available facilities

• Undrawn committed credit

facilities EUR 206.1m

• EUR 250m revolving credit

facility

• EUR 150m senior bond

maturing in February 2018

• EUR 375 unsecured syndicated

facilities maturing in January

2020 and 2021, consisting of EUR

125m term loan and EUR 250m

revolving credit facility

• EUR 200m commercial paper

program

Current debt financing

arrangements

Liquidity position

-50

50

150

250

350

450

550

650

12/2016 12/2017 12/2018 12/2019 12/2020 12/2021 12/2022

EU

R m

illi

on

Bond 2022 Bond 2018

Syndicated Term Loan & RCF Commercial Papers

Other Debt Undrawn Committed Facilities

44

Targeted higher returns will generate higher operative and free cash flow, however

leaving room for growth investments when returns are available

Flexibility in cash flowsInvestment cash flow largely subject to Cramo’s discretion

45

104

139121

77

68

138 146160

118

175 172

-96

-175

-217

-11 -41

-194

-84-110

-125-139

-165

8

-37

-96

65

27

-55

62 50

-6

367

-300

-200

-100

0

100

200

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

EU

R m

illi

on

Cash flow from operations Cash flow from investments

Free cash flow

45

Summary: Group financial

targets – Vision 2020

AlignAlign operations within two individual business divisions to create operational

excellence and realise group synergies

OptimiseOptimise capital allocation to generate higher returns and

capture growth potential in chosen markets

GrowthGrow organically supported by acquisitions

Perform to achieve higher returns that satisfies stakeholders

while Shaping the whole industry with Sharing Economy

MS + ER

46

Conclusion

• Growth and performance

improvement targeted for 2017-2020

• Financial targets set separately for

two business divisions

• More focus on capital efficiency

• New reporting segments to reflect

strategy execution

47

Petri Moksén

SVP, Modular Space

Modular Space

48

Overview of Modular Space

Complete

package

Central

Europe#1

Nordic market

leader

Full

life-cycle

4Solutions

Driving

customer

advantages

49

How it works

Analysis &

design

Assembly Maintenance &

service

Disassembly

& removal

50

51

To whom

Schools

Offices Accommodation Daycare

52

Services in addition to the rental offering

During deliveryCustomisation of the units

Transport to project site

Assembly of the units

Other services

During rental period

Maintenance

During returnDisassembly of the units

Transport off-site

Reset of customisation of the units

Other services

53

Number of modules returned & delivered

• Units delivered

– 2016: 5572

– 2015: 3530

• Units returned

– 2016: 3938

– 2015: 2428

54

55

Cramo AdapteoTemporary space needs

Schools Daycare

Office space Accommodation

Cramo rebranded its high

quality modular space

operations as Cramo Adapteo

in early 2014

Adapteo’s main customer

group is the public sector.

Industrial companies and large

projects also important

Temporary need

Site-specific

Initial need often for 2-3 years, but contracts typically

extended up to 5 years

Competitive solutions especially for site-specific space need

(e.g. schools)

The Cramo Modular space conceptFlexible solutions for wide array of temporary space needs

55

56

Cramo Modular SpaceTemporary space needs

Modular space provides stability and visibilityFlexible solutions for a wide array of temporary space needs

Schools &

Daycare

Offices

Accommodation

Share of group 2016

Steady cash flow with a

significant contribution to

group profitability

Key focus segment in

investments and an

important growth area for

the group

Highlights

The fact that the main customer group is the public sector provides diversification

benefits

EBITASales EBITDA

Capital

employed

16%

21%

26%

32%

56

Cramo Story and Adapteo Proofs of Promise

Always

responsive

A perfect

delivery

Uptime is

key

57

• Sales growth + 18,6 %

• Strengthened position in Germany

• Product and solution development

• New innovative solutions

Highlights of 2016

58

Slush event, Helsinki, Finland 2016

59

Bauma 2016 in Munich, Germany

60

61

Organisational and operational model

• Best-in-Class, business excellence model built-

in to the organisation and to the way of working

• Fully operating cross-border model

• Target improvement

– Price management and price increases

– Cost control

– Efficiency in all operations

– Securing maximised profit

• Decentralised organisation and operational

responsibility

• Organisational model supporting our expansion

in current countries as well as to new countries

62

Growth drivers – constant demand for new space

Increased

flexibility

Rapid

changes in

dynamics

Increasing

urbanisation

Shorter

lifecycles

Increased

sustainability

awareness

Faster

speed of

delivery

Improved and

transparent

cost capital

efficiency

Matching

quality

Business model, operational model driversMarket and customer growth drivers

63

Actions to pursue growth opportunities

ORGANIC + ACQUISITIVE GROWTH

• Utilising brand

• Leveraging the large and versatile fleet

• Technical expertise

• Differentiation opportunities

• Best-in-Class

• Proactive sales work

• Cost competitive, flexible and scalable

• Synergies from Cramo Group

• Energy efficient - new fleet

• Consolidation opportunities in selected

markets

64

Shaping

the futureResourcesPeople Germany

Strategy focus points

65

Conclusion• Strong sales growth

• Capturing potential in Germany

• New strategy focus areas about people,

resources, Germany and shaping the

future

66

Enable people

to perform

Petra Schedin Stergel

SVP Human Resources

67

“Always treat your employees

exactly as you want them to treat

your best customers.”

– Stephen R. Covey

68

People Vision 2020 – a part of Shape & Share

• We recruit• We develop• We learn and share• We are role models

69

70

We live in a changing world…

Shift in global economic power

Demographic and social change

Resource scarcity

Technological break-throughs

…with a changing talent market

Differentiate

Distinct

Relationships

Leaders

Collaborate

71

Our People-work is clearly linked to the

overall business strategy, vision and goals.

AlignImplementing common processes and tools

Living the Cramo story

OptimiseShaping the business structure and model

Enhancing the performance culture

Creating a digital concept•Enhancing the pe

GrowthBuilding a new footprint in chosen markets

Targeting organic growth

Evaluating potential acquisitions target companies in

new markets

72

Develop our People Business

Vision

WhatBusiness strategy

HowPeople strategy

Marketing

Sales

Product -

development

Employer Branding

Recruitment

Employee

Engagement

Our People-work is

clearly linked to the

overall business

strategy, vision and

goals.

73

What makes us great: professional experience

CUSTOMER JOURNEY EMPLOYEE JOURNEY

Determines whether potential and

existing customers will buy and

recommend our products and services

Determines whether potential and existing

employees will choose us, feel the

engagement and recommend us as an

employer

74

Focus area: Enable people to perform

Develop

People to

Perform

Roll-out

Cramo CareDrive

Cramo Story

Root

Performance

Culture

1 2

43

75

Next step: create a People strategy

PURPOSE. Describe…

• … and explain expected behaviors and Cramos values

• … which activities we will prioritise in order to attract and retain the

right employees

• … what and how to communicate regarding our employee value

proposition

CONTENT. Define and describe…

• … our common people processes.

• … our common people KPI’s.

• … managers responsibilities visavi their employees.

• … HR responsibilities.

76

Employee lifecycle: the people business

Define common processes within

every area to make sure we follow

our strategy and deliver quality.

Employee

lifecycle

Exit Attract

Develop &

Motivate

Introduce

Recruit

Customer

77

Cramo Story

• Differentiate from

competitors

• Strengthen brand

• Passion to meet

expectations

• Contribute to customers’

success

78

Cramo Story – next step

Package all HR-tools

and communicate

great internal stories

Your performance:

How should I create

a great day at work

Consequence

Create a clear

People perspective

How:

My great day at work

Link Strategy

Cramo Story

Values and

Behaviors

Employee lifecycle:

Systems and tools

Happy people

Happy customers

Define leadership

Be a role model

Own Cramo Story from

the top

See the

individuals and

build the team

spirit

One Cramo also on

the inside

79

Sustainability• Growth

• Risk

management

• Return on

capital

CUSTOMER CARE

• Customer

satisfaction

• Safe solutions

• Energy-efficient

solutions

• Anti-corruption

and high business

ethics

EMPLOYEE CARE

• Diversity and equality

• Safety

• Recruitment and

competence

development

• Dialogue,

empowerment and

satisfaction

ENVIRONMENTAL CARE

• Energy efficiency

• Resource efficiency

• Waste management

• Low emissions

SOCIAL CARE

• Local engagement

• Compliance with laws,

regulations

• Waste management

• Low emissions

COMMITMENT AND PRINCIPLES

Code of Conduct and Business Ethics

Supplier Code of Conduct

UN Global Compact

ISO

Cramo Care – our strategic approach on

sustainability

80

Conclusion• We will enable people to perform

• We will root performance culture

• We will drive Cramo Story

• We will roll-out Cramo Care

81

Fleet optimisation and

the digital journey

Martin Holmgren

SVP Fleet Management

82

Introduction to Fleet Management

Mission:

Optimise

assets and

drive

digitalisation

Objective:

focus on

ROCE

Fleet size:

230,000New digital

strategy

83

Key success factors

• Harmonised and digital fleet

processes

• Strict control of investment

releases

• Fleet efficiency focus and

common fleet KPI’s

• Professional purchasing

organisation

• Internet of Things innovations

84

Next level of fleet optimisation to meet new financial targets

Continuous

development

Cramo

Field

TMS

C-

Buy

85

Digitalisation trends and drivers

Sustainability IoT

Digital

development

for a

sustainable

business

New

governance

model

86

Harmonisedprocesses and

It-systems

-2013

Performance management

and digitalisation of

processes

2014-2016

IoT and new business solutions

2017-2020

The future of IoT in rental

2020-

Cramo’s digital development path

87

OEM systems

Cramo - Generic

connection box

and user

interface

Data exchange

standards

IoT value chain development and obstacles

Rental companies and

multiple fleet owners

have invested in generic

systems disconnected to

the OEM systems

OEM ’s have invested

in their own application

software systems,

mostly used by small

fleet owners and

themselves

Associations develops

towards standardisation

(ERA, VDBUM, ISO,

AEMP/AEM) OEM takes

part in this development

Propriety system

A major success factor is further

standardisation of data collection and

data communication to connect OEM’s

data sources with rental companies

application systems

88

We have track units on 10,000 machines

TODAY FUTURE NEEDS

• Identifying where the equipment is in

case of theft

• Engine hours are updated with

information of running hours to trigger

preventive service orders and alert us

that it is time for service.

• Invoice customers

• Included in equipment insurance model

• Access control, meaning if you

don’t have the right training, you

can’t use the equipment.

• Reception of machine failure codes

so we can use them for our needs.

• Automated return control process

solutions

89

Value proposition

Machine health

Run time data

Customer

Sell data

Machine Control

Positioning Remote error

Firmware

90

Conclusion• Well positioned to capture the potential

in digital

• Next level of fleet management will

support financial target

• Moved towards fully connected fleet

• We are shaping the way of doing

business

91

Cramo Customer

Centric Program

Jonas Pärssinen

Director Business Development

92

New types of companies are taking over

93

Before

Now

94

We are in the Age of the Customer

Age of Manufacturing

Mass manufacturing

makes industrial

powerhouses

successful

• Ford

• General Electric

• Boeing

Age of Distribution

Global connections

and transportation

systems make

distribution key

• Grocery Chains

(Wal-mart,

Target)

• Toyota

• IKEA

• UPS

Age of Information

Internet connects

information, supply

chains and value.

• Google Search

• Amazon

• Comcast

Age of the Customer

Empowered buyers

with full mobile

access demand a

new level of

customer obsession.

• Uber

• AirBnB

• Sunfleet

• Google Now

1900 1960 1990 2010

Evolution of Value Creation

95

Rethink how we create value for our customers

96

97

Arenas of Development & Transformation

Digital Business Production

Cramo Customer Centric Initiatives

98

DigitalHome pages and social

media presence

Digital platform with

tools and near endless

possibilities to serve

our Customers

BusinessDepot roles, market

presence and

Customer Service

Customer Offerings,

Pricing & smart

Segmentation

Production

Efficient Supply Chain &

Fleet optimisation

Enhanced network

and structure

Cramo Customer Centric Initiatives

99

Conclusion• We rethink what creates value

• Cramo will enter the age of the

customer

• We focus on clear initiatives:

Digital, Business, Production

100

Elina Aalto

eChannel Manager

DIGITAL CRAMO

101

Digital at Cramo

New

website

2017:

Breaking

year

eCommerce

tool:

Cramo

eCRent

New digital

strategy

102

Digital vision & mission

Vision:

Digital change leaders

Shapers, not

followers!

Mission:

Easy accessible, always

open channels that adds

value

103

eCommerce solution Cramo eCRent supports the

customer throughout the customer journey

Efficient portal for account and rental

management

Easy to find products

Detailed product data

Accurate availability information

Easy to make transactions

Easy access

104

Cramo eCRent eCommerce value proposition

A GREAT DAY AT WORK

Quick and easy to use

Ordering and returning one

click away

Next day delivery with

wished time slot

All order information and history in one

source

Enhanced and accurate product

information always available

All jobsites in one portal

Always open

105

Collecting customer data has never been easier

Improve

Analytics

Customer

behavior

Big

Data

106

Prioritisation

Digital channel development is a journey that

should never end

Digital channels 1.0

Analytics Testing Backlog Innovations

Optimised digital channels & engaged customers

107

Conclusion• 2017 is a breaking year for Digital

Cramo

• We want to be digital change leaders

• We are shapers, not followers!

• New websites and Cramo eCRent

108

New segment structure

17% 12% 4% 11%

FORTRENT

ER ScandinaviaER Finland and

Eastern EuropeModular SpaceER Central Europe

Net sales (mEUR)

EBITA (margin-%)

379

65 (17%)

ROCE %

Net sales (mEUR) Net sales (mEUR) Net sales (mEUR)

EBITA (margin-%)

22 (16%)

ROCE %

EBITA (margin-%)

4 (5%)

ROCE %

EBITA (margin-%)

31 (26%)

ROCE %

139 79 118

17% 12% 4% 11%

109

Highlights from 2016Footprint

XX% YY%

Equipment Rental in Scandinavia

Scandinavia

Eastern Europe

Central Europe

Focus going forward

Net sales (mEUR)

EBITA (margin-%)

379

65 (17%)

ROCE %

17%

• Increased revenue and EBITA at the same time

• Performance management

• Customer centric improvement

• Shape and Share attitude

• Right leadership - retain and attract talent

• Digitalisation

110

Focus going forward

Footprint

XX% YY%

Equipment rental Finland and Eastern

Europe

Scandinavia

Eastern Europe

Central Europe

Highlights from 2016

Net sales (mEUR)

EBITA (margin-%)

22 (16%)

ROCE %

139

12%

• Strong sales growth and improved profitability in

Finland

• Successful implementation of Cramo Story

• Good results from Performance management

• Differentiation through customer experiences

• Leverage possibilities in digitalisation –

e-commerce and Internet of Things

• Drive performance management

FORTRENT

111

Footprint

XX% YY%

Equipment rental in Central Europe

Scandinavia

Eastern Europe

Central Europe

Highlights from 2016

Focus going forward

Net sales (mEUR)

EBITA (margin-%)

4 (5%)

ROCE %

79

4%

• Long and tough journey last 4 years –

Turnaround done!

• Major change program regarding business

model, peoples mind set, processes and

supporting systems

• Rolling out new order and delivery platform >

Simplify customers Life

• Excel in price management

112

FOR A GREAT DAY AT WORK

CRAMO Capital Markets Day

SUMMARY AND Q&A

Leif Gustafsson,

President and CEO

16 February 2017

113

Cramo Strategy 2020: Shape and Share

3

Focus on further profitable growth

• Existing and new markets

• Organic growth + M&A

• Customer centric and innovation

Focus on further alignment and optimisation

• Leverage group synergies

• Unified processes and tools

• Further digitalisation

Focus on people performance

• Talent management

• Enhance performance culture

• Living the Cramo Story2020

Align

Optimisation

Growth

114

Conclusion

• New strategy to shape the future

• New financial targets

115

Appendix

116

Equipment Rental Strategy

Enable People to

Perform

Shape the FutureCapture Operational

Excellence

Simplify Customer

Offerings

1 2

43

2.1 Differentiate Segment

Offerings

2.2 Roll out new Order &

Delivery Platform

2.3 Shape Cramo Brand

4.1 Cramo Innovation Lab

4.2 Beat Cramo3.1 Develop Sales

Performance

3.2 Excel in Price

Management

3.3 Improve Fleet

Efficiency

1.1 Develop People’s

Core Competences

1.2 Root Performance

Culture

1.3 Drive Cramo Story

1.4 Roll-out Cramo Care

117

Modular Space Strategy

Enable People to

Perform 1.1 Living Individual

Performance Culture

1.2 Drive Cramo Story

1.3 Attract & Develop

Strategic Competences

Secure Resources2.1 Recruit and integrate

people

2.2 Simplify Delivery

Platform

2.3 Shape scalable

production capacity

Shape the Future4.1 Create digitalized

concepts

4.2 Increase sustainability

in business

4.3 Commercialise new

Adapteo Business Units

Capture the Potential

in Central Europe 3.1 Expand in line with

our current offering

3.2 Invest to a

comprehensive network

3.3 Execute additional

growth through M&As

1 2

43

118

Videos shown during the Capital Markets Day can be found at:

https://www.youtube.com/playlist?list=PL9mLcx7rpIPfBcwNNMiowr92hz6WsC7HO

119