THE NEXT 20 YEARS - Cramo Group · FINANCIAL TARGETS EQUIPMENT RENTAL Organic sales growth > market...
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SEB Nordic Seminar 2018 Leif Gustafsson, CEO and President Copenhagen, Jan 9 2018 ”THE NEXT 20 YEARS” CRAMO GROUP
Transcript of THE NEXT 20 YEARS - Cramo Group · FINANCIAL TARGETS EQUIPMENT RENTAL Organic sales growth > market...
SEB Nordic Seminar 2018
Leif Gustafsson, CEO and President
Copenhagen, Jan 9 2018
”THE NEXT 20 YEARS”CRAMO GROUP
CRAMO IN BRIEF
Russia
Czech Rep.
AustriaHungary
Ukraine
Norway
Finland
Sweden
Lithuania
Slovakia
Estonia
Germany
Poland
Denmark
STRONG RENTAL POSITION
#2in Europe
Cramo
Fortrent
#1in the Nordics (MS)
324depots
14countries
230,000rental units
150,000customers
300depots
#2in Europe
TWO STRONG BUSINESS DIVISIONS
EQUIPMENT
RENTAL
MODULAR
SPACE
FINANCIAL TARGETS
EQUIPMENT RENTAL
▪ Organic sales growth > market
▪ ROCE > 14.5%
MODULAR SPACE
▪ Double digit organic sales growth
▪ ROCE > 12.5%
GROUP
▪ Net Debt / EBITDA < 3x
▪ ROE > 15 %
▪ DIVIDEND PAYOUT RATIO ~40 %
* Financial targets: on average during 2017- 2020
* ROCE = EBIT / capital employed (average)
MEGATRENDS AND DRIVERS
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
FINANCIAL
PERFORMANCE
2016 FINANCIALS PER BUSINESS SEGMENT
Finland
Lithuania
Estonia
Poland
Net sales (mEUR)
EBITA(margin-%)
ROCE
139
22
12%
(16%)
ER Finland
and Eastern Europe
Czech Rep.
Austria Hungary
Slovakia
Germany
Net sales (mEUR)
EBITA(margin-%)
ROCE
78
4
4%
(5%)
ER Central Europe
Norway
Finland
Sweden
Lithuania
Estonia
Germany
Denmark
Net sales (mEUR)
EBITA(margin-%)
ROCE
118
31
11%
(26%)
Modular Space
Norway
Sweden
Net sales (mEUR)
EBITA(margin-%)
ROCE
379
65
17%
(17%)
ER Scandinavia
Q3 2017 Highlights
• Organic sales growth in local currencies was
5.5%
• Comparable EBITA EUR 40.2m (38.9) with
margin of 20.9% (21.1%)
• Strong sales growth of 25.1% in modular
space resulted in profit improvement
• Actions in modular space division continue
to improve profitability further
• Divestment of Danish equipment rental
operations and Latvian and Kaliningrad
operations were completed during the
quarter
FINANCIAL TARGET REALISATION
EQUIPMENT RENTAL 1-9/2017 MODULAR SPACE 1-9/2017
10
Organic sales
growth**, %
+3.5
Comparable ROCE, %
14.9 (12.1)
MODULAR SPACE
Double digit organic rental sales growth
ROCE, % > 12.5
*) According to ERA (European Rental Association) in the markets where
Cramo is present.
**) Organic rental sales growth excludes the impact of acquisitions,
divestments and exchange rate changes
EQUIPMENT RENTAL
Organic sales growth > markets *)
ROCE, % > 14.5
*) According to ERA (European Rental Association) in the markets where
Cramo is present.
**) Organic sales growth excludes the impact of acquisitions, divestments
and exchange rate changes
Organic rental
sales growth**, %
+9.5
Comparable ROCE, %
9.7 (11.8)
SHAPE AND
SHARE
STRATEGY
THE ROADMAP IS CLEAR
AlignImplementing common processes and tools
Living the Cramo Story
Operational efficiency
OptimizeShaping 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
THE CRAMO RENTAL CONCEPTA 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.
Tailor-made total RENTAL SOLUTIONS
for more efficient, safe and environmentally
sound construction projects.
MODULAR SPACE
SOLUTIONS
matching the standards of
permanent buildingsfrom classrooms and daycare
facilities to high-tech offices
and accommodation.
Operating in 8 countries
SITE HUTSadaptable for various
purposes and
capacity needs.
COMPREHENSIVE
RANGE OF TOOLSand complete package
solutions in building
equipment.
Modern, comprehensive fleet of
CONSTRUCTION EQUIPMENTfor any type of assignments, from major road
projects to small-scale jobs.
ACCESS EQUIPMENT with comprehensive safety
solutions for working at heights.
A RANGE OF
RENTAL-RELATED
SERVICESIncluding transport,
assembly, disassembly,
other services, and
transport off-site.
More than
230,000
rental
items
Over
150,000
customers
INDUSTRIAL PROJECTSincluding infrastructure,
offshore and mining.
MODULAR SPACE
SERVED CUSTOMER SEGMENTS
Offices Daycare Accommodation Schools Events
170
53 43 54
Sweden Finland Norway Denmark
NORDIC MODULAR SPACE RENTAL MARKET
Sales outlook
2018-202010% >10% >5% >5%
Management estimations
Sales, M€ Rental 251
116
7077
21%
Cramo
Adapteo
107MEUR
Others
407MEUR
NORDIC MODULAR SPACE RENTAL MARKET
MODULAR SPACE GROWTH DRIVERS
Economic
growth
Increasing
awarenessChanging
demographics
Renovation
needsUrbanization
Demand for high quality temporary space solutions
Special customized
Premiumwooden
Standard wooden
Steel
Site huts
Current
Modular Space fleet
~23,000 units
FLEET OPTIMIZED FOR ALL SEGMENTS
Quality
Time
Modules
Operated by
Cramo Equipment
Rental
SERVICES IN ADDITION TO THE RENTAL OFFERING
• Customization
• Transport
• Assembly
• Maintenance
• Facility management
• Security
• Disassembly
• Transport
• De-customization
Return Delivery
• Need analysis
• Design
• Building permit process
Rental
period
Planning
CRAMO MODULAR SPACE
Recurring
revenues
Flexible
premium
solutions
Growing
market
Non-cyclic
business logic
Attractive
customer base
POTENTIAL SEPARATION OFModular Space
The Board of Cramo Group has decided to further investigate and initiate a process to assess the potential separation of the Modular Space business division into its own legal entity.
NEXT 20 YEARS
CAPTURING OPPORTUNITIES IN A CHANGING WORLD
Cramo
SharingEconomy
Digitalization
Migration
Urbanisation
Demographic changes
Scarcity of resources
Megatrends Drivers
Sustainable development
DIGITAL VISION AND MISSION
VisionDigital change
leaders
Shapers, not followers!
MissionEasy accessible,
always open
channels that
adds value
DIGITALIZATION IN CRAMO
▪ Digital Transformation Team (DTT) a Cross-functional team to drive Cramo’s digital development - Focusing on new initiatives
▪ Web and Social media presence
▪ Build internal Sharing culture
▪ Capture the potential in IoT – a connected fleet
Easy to find products
Detailed product data
Accurate availability information
Easy to make transactions
Efficient portal for account and rental
management
Easy access
CRAMO E-COMMERCE SOLUTION
Leading player in
a growing market
Ready to capture
the potential in
innovation and
digitalization
Potential in
Modular Space
– further value
creation
Business model
supported by
megatrends and
sharing economy
QUESTIONS
APPENDIX
MORE ABOUT US
www.cramogroup.com
www.cramo.com
Cramo Group
Cramo Group
Cramo Group
CONTACT
Leif Gustafsson, President and CEO
+358 10 661 10
Aku Rumpunen, CFO
+358 10 661 12 72
Mattias Rådström, SVP Communications, Marketing and Investor
Relations
+46 70 868 70 45
