CRAMO PLC
INTERIM REPORT1.1.2010 – 30.9.2010
POWERING YOUR BUSINESS
2
CEO Vesa Koivula
CFO Martti Ala-Härkönen
3
Contents
� Highlights of Q3/2010 and
update on the rental industry
� Interim report Q3/2010
� Group performance
� Business segments
� New strategy and outlook
� Appendix
� Additional financial information
4
Highlights of Q3/2010Stronger markets, improving profitability
Russia
Denmark
GermanyPoland
CzechRepublic
AustriaHungary
Slovakia
Ukraine
Belarus
Lithuania
Latvia
Estonia
Norway
Sweden
Finland
Romania
Moldova
St. Petersburg
Bulgaria
Slovenia
Croatia
Bosnia and
HerzegovinaSerbia
Macedonia
Albania
Moscow Yekaterinburg
Number of depots
09/2010: 288
• The market turn that started at the end of Q2 continued in
all of Cramo’s markets
• Cramo Group’s sales and profitability improved in Q3 as a
result of the market turn and the cost-saving measures
implemented in 2009
• Sales & EBITA developed positively in all segments in Q3
– In Q3, y-o-y, sales grew by 13,3% and EBITA by 58,2 %
– Profitability was on a good level in Finland and Sweden
– In Norway the business swung to profit
– In Denmark and CEE, EBITA continued to be negative but
improved clearly from the beginning of the year
• Continued strong cash flow and strengthening balance
sheet
– Cash flow after investments of EUR 26,7m in Q1-Q3/2010
(EUR 35,3m)
– Equity ratio 38,5% (38,0%), gearing 107,5% (113,1%)
• New strategy, renewed strategic and financial targets
5
-10 %
-5 %
0 %
5 %
10 %
15 %
20 %
25 %
30 %
35 %
-60 % -50 % -40 % -30 % -20 % -10 % 0 % 10 %
Construction output loss, cumulative % from peak to trough
Co
nstr
uctio
n o
utp
ut g
row
th 2
01
0-1
2, cu
mu
lative
%
Growing construction marketRecovery in European construction
Higher extent of construction output loss in recession
Faste
rspeed
of re
covery
from
recessio
n
Poland
Russia
Sweden
Slovakia
Hungary
Denmark
GermanySwitzerland
Belgium
AustriaThe Netherlands
FranceFinland
UK
Italy Norway
Czech
Rep.
Estonia
Latvia
Lithuania
Portugal
SpainIreland
”Star performer”
Fast recovery
Slow recovery Modest recovery /
mild recession
Prolonged
contraction
Fast-modest recovery
after very severe
recession
Source: Euroconstruct, June 2010
*Poland: historical output change calculated for 2008-09, ie. the year of lowest growth
6
-40 %
-30 %
-20 %
-10 %
0 %
10 %
20 %
Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 /
07/10*
% c
hange fro
m p
revio
us y
ear
Cramo sales growth Construction output growth
Recovery in rental follows construction with a lagRental recovery generally comes with a lag, but rate of recovery is fasterIn normal business conditions, rental growth surpasses construction growth
Source: Construction growth rates from Eurostat (quarterly) and Euroconstruct, June 2010 (annual). Rental growth rates and
estimates from European Rental Association, Spring 2010
*Construction growth rates include only July 2010 for Q3
Construction and rental by quarter (Finland) Construction and rental by year (Finland)
1-2 quarter lag
Faster rate of
recovery
-20 %
-15 %
-10 %
-5 %
0 %
5 %
10 %
15 %
20 %
25 %
2007 2008E 2009E 2010F 2011F
% c
hange fro
m p
revio
us y
ear
Rental market growth Construction output growth
7
Increasing confidence among rental companiesImprovement in confidence continued in Q2/2010
Source: ERA / IRN Rental Tracker Survey June 2009 – June 2010 (International Rental News)
Improving
conditions
Declining
conditions
-100 %
-80 %
-60 %
-40 %
-20 %
0 %
20 %
40 %
60 %
80 %
100 %
Q2/09 Q3/09 Q4/09 Q1/10 Q2/10
Bala
nce o
f positiv
e a
nd n
egative e
xpecta
tions
Current rental business conditions in Europe
8
Increasing outsourcing activity since Q2/2010• In October, Cramo Finland acquired a significant portion of the rental business of
Lambertsson Oy, the rental operation of Peab in Finland. At the same time, in Sweden, Cramo sold its heavy equipment driving and operating services business to Peab and renewed its equipment rental contract
– Five-year equipment rental agreements with Peab both in Finland and Sweden
• In September, Cramo Norway signed an agreement with Nordic Crane Group– Five-year co-operation agreement gives Cramo access to a broader customer base within the
industrial segment and enables Cramo to offer a broader product selection to customers
– Cramo buys Hego Maskinutleie AS from Nordic Crane Group
• In July, Cramo Sweden acquired the rental operations of AB Svensk Byggleasing in the Stockholm area
– The deal strengthens Cramo’s regional position and adds a new depot in Upplands Väsby
• In June, Cramo Finland signed an outsourcing agreement with a subsidiary of Lemminkäinen in Central and South-West Finland
– Cramo acquired fleet and depots in Turku and Tampere
– Five-year equipment rental agreement
• In June, Cramo Sweden signed an outsourcing agreement with Frijo AB– Cramo acquired Frijo’s fleet
– Five-year equipment rental agreement
• In April, Cramo Finland signed an outsourcing agreement with a subsidiary of Lemminkäinen in Eastern Finland
– Cramo acquired fleet of Savocon Oy, Lemminkäinen’s Eastern Finland operations
– Five-year equipment rental agreement
9
Q3 / 2010Group performance
10
83
,6
96
,7 10
5,5 11
6,6
10
7,3 11
6,4 1
29
,0 14
3,8
12
6,8
15
4,0
15
5,7
14
3,3
10
6,9
10
9,3
11
5,1
11
5,4
10
1,4 1
14
,0
13
0,4
0
20
40
60
80
100
120
140
160
180
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
Quart
erly s
ale
s (EU
R m
illion)
Cramo quarterly sales development Q3/10 second quarter of year-on-year sales growth since Q3/08
* Change in local currencies
Cumulative y-o-y:
4,4% (-2,6%*)
Q3 vs. Q2
2010: 14,4%
Periodic y-o-y:
13,3% (6,7%*)
11
9,8
15
,1
25
,0
22
,9
16
,7
22
,4
30
,7
26
,1
17
,4
30
,7
34
,2
19
,8
1,5
4,8
9,6
1,4
1,5
3,8
15
,2
0
5
10
15
20
25
30
35
40Q
1/0
6
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
Quarterly E
BIT
A (EUR m
illion, bar gra
ph)
-15 %
-10 %
-5 %
0 %
5 %
10 %
15 %
20 %
25 %
EBIT
A %
(line g
raph)
Cramo quarterly EBITA development EBITA improved clearly compared to last year and Q2/10
Note: EBITA includes reorganisation expenses, credit losses and an increase in credit loss provisions totalling EUR 5,7m and an
impairment loss on fleet of EUR 1,7m in Q1-Q3/2010.
+58,2%
12
Quarterly EPS performance (diluted)EPS turned positive in Q3/10
0,14
0,31
0,430,49
0,28
0,48
0,62
0,48
0,26
0,520,59
0,22
-0,22-0,15
-0,03
-0,88
0,06
-0,16-0,24
-1,00
-0,80
-0,60
-0,40
-0,20
0,00
0,20
0,40
0,60
0,80
Q1 Q2 Q3 Q4
Quarterly d
ilute
d E
PS (EUR)
2006 2007 2008 2009 2010
13
Capital ExpenditureCapital expenditure was EUR 13,0m in Q3/2010; In 2010, the Group’s CapEx (excl. acquisitions) will be approximately EUR 40m
Note: Gross CapEx includes acquisitions
12,1
7,0 5,7 6,63,5
12,68,9
4,1
4,1
0,412,5
7,05,7
6,6
3,5
16,7
13,0
0
10
20
30
40
50
Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10
Gro
ss C
apital Expenditure
(EUR m
)
0 %
2 %
4 %
6 %
8 %
10 %
12 %
14 %
16 %
Gro
ss C
apita
l Expenditu
re to
Quarte
rly s
ale
s (%
)
CapEx CapEx, acquisitions Gross CapEx to sales
14
-80
-60
-40
-20
0
20
40
60
80
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
Quarterly c
ash flo
w (EUR m
)
Cash flow from operations Cash flow after investments
Cash flow Positive cash flow after investments of 26.7 m€ in Q1-Q3/2010
Note: Cash flow after investments includes acquisitions
Acquisitions EUR 28,5m
Acquisitions EUR 8,6m
15
319
356 352365
433
516 514
477 482
429413
384 375 382 381
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 %
0
100
200
300
400
500
600
700
800
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
Net in
tere
st-bearing lia
bilitie
s (EUR m
)
0 %
20 %
40 %
60 %
80 %
100 %
120 %
140 %
160 %
180 %
Gearin
g %
Net interest-bearing liabilities Gearing %
Strengthening capital structureGearing improving
16
0
100
200
300
400
500
600
700
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
Sale
s o
r Tangib
le a
ssets
, EUR m
0 %
20 %
40 %
60 %
80 %
100 %
120 %Sale
s, R
12m
/ Tangib
le a
ssets
, %
Sales, R12m Tangible assets Sales / tangible assets
Current fleet enables growthSales to tangible assets ratio has started to improve
Sales to tangible assets from
~90% to 100-110%
� EUR 45-90m higher sales
with current fleet
17
Q3 / 2010Business segments
18
Sales by business segment
EUR 345,7 million EUR 331,3 million
Sales 1-9/2010 Sales 1-9/2009
Sweden
50,5 %
Norway
14,1 %
Denmark
5,9 %
Central and
Eastern
Europe
9,7 %
Finland
19,7 %
Sweden
47,3 %
Norway
14,1 %
Denmark
8,1 %
Central and
Eastern
Europe
9,8 %
Finland
20,8 %
19
FinlandClear sales growth, further improved profitability
� Clear sales growth in Q3/2010
� Economic and construction recovery visible in a high
number of housing starts
� Increase in renovation projects in H1 exceeding
typical seasonal variation
� Commercial and office construction starts low
� Further improved profitability in Q3/2010
� EBITA margin 22,3% compared with 18,0% a year
earlier; recovery in demand together with completed
adjustments contributed to profit
� Good profitability in modular space
� Integration of outsourcing arrangements made in Q2
proceeding as planned
� Euroconstruct* construction growth forecast +1,2%
in 2010 and +0,2% in 2011 (RT** +2% & +3% resp.)
Highlights Sales by quarter
* Euroconstruct, June 2010
** Rakennusteollisuus RT, October 2010
EBITA by quarter
27,7
33,1 34,031,5
23,3 22,623,8
22,419,1
22,7
27,4
0
5
10
15
20
25
30
35
40
Q1 Q2 Q3 Q4
Quarterly s
ale
s (EUR m
illion)
2008
2009
2010
3,7
6,1
9,7
6,8
0,91,8
4,33,7
0,6
2,5
6,1
0
2
4
6
8
10
12
Q1 Q2 Q3 Q4
Quarterly E
BIT
A (EUR m
illion)
2008
2009
2010
Change Change
(EUR 1 000) % %
Sales 27 430 23 834 15,1 % 69 181 69 686 -0,7 % 92 067
EBITA 6 105 4 291 42,3 % 9 201 7 052 30,5 % 10 704
EBITA-% 22,3 % 18,0 % 13,3 % 10,1 % 11,6 %
1-12/
2009
7-9/
2010
7-9/
2009
1-9/
2010
1-9/
2009
20
Change Change
(EUR 1 000) % %
Sales 64 839 55 296 17,3 % 177 337 158 302 12,0 % 215 675
EBITA 12 332 11 084 11,3 % 26 586 28 197 -5,7 % 36 026
EBITA-% 19,0 % 20,0 % 15,0 % 17,8 % 16,7 %
7-9/
2010
7-9/
2009
1-9/
2010
1-9/
2009
1-12/
2009
SwedenGrowing sales, good level of profitability
� Sales increased by 17% compared to Q3/2009 (7%
in local currency)
� Construction and the demand for equipment rental
services continued to be favorable
� Growth has been strong in the Stockholm area and
Southern Sweden and is expected to expand to the
whole country
� Fleet utilisation rates at a good level
� EBITA improved further from H1
� Acquisition of AB Svensk Byggleasing rental
business in Stockholm area in July
� Euroconstruct** estimates construction growth to be
2%** in 2010 and 8%** in 2011 (BI*** 3% and 5%,
respectively)
* Change in sales measured in local currency
** Euroconstruct, June 2010
*** Sveriges Byggindustrier, October 2010
Highlights
1,4%*(local curr.)
Sales by quarter
EBITA by quarter
7,2%* (local curr.)
62,7
73,8 70,766,7
50,1 53,0 55,3 57,451,9
60,664,8
0
10
20
30
40
50
60
70
80
Q1 Q2 Q3 Q4
Quarterly s
ale
s (EUR m
illion)
2008
2009
2010
13,1
16,9
18,9
14,1
7,3
9,811,1
7,8
5,4
8,8
12,3
0
2
4
6
8
10
12
14
16
18
20
Q1 Q2 Q3 Q4
Quarterly E
BIT
A (EUR m
illion)
2008
2009
2010
21
Change Change
(EUR 1 000) % %
Sales 17 023 15 615 9,0 % 49 453 47 108 5,0 % 63 427
EBITA 310 853 -63,7 % -96 3 124 *) 3 995
EBITA-% 1,8 % 5,5 % -0,2 % 6,6 % 6,3 %
1-12/
2009
7-9/
2010
7-9/
2009
1-9/
2010
1-9/
2009
NorwayEBITA swung back to profit in Q3/2010
� Sales increased by 9% compared to previous year
in Q3 (1% in local currency)
� Declining construction market in H1; pick up in
construction expected before year-end
� Intense price competition in H1/2010; price levels
gradually improving during Q3
� Weak market & price pressure reflected in EBITA
� Measures aimed at improving profitability continue
� EBITA in Q1-Q3 includes credit losses & credit loss
provisions of EUR 0,6m (EUR 0,2m)
� Co-operation started with Nordic Crane Group AS;
acquisition of Hego Maskinutleie AS
� Euroconstruct** estimates construction to decrease
by 4% in 2010 and to increase by 2% in 2011
* Change in sales measured in local currency
** Euroconstruct, June 2010
*) Change over 100%
Highlights
-4,5%*(local curr.)
Sales by quarter
EBITA by quarter
0,9%*(local curr.)
15,6
18,6 18,217,2
15,8 15,7 15,6 16,317,115,3
17,0
0
2
4
6
8
10
12
14
16
18
20
Q1 Q2 Q3 Q4
Quarterly s
ale
s (EUR m
illion)
2008
2009
2010
0,9
2,4 2,3
0,6
1,2 1,10,9 0,9
-0,1-0,3
0,3
-1
0
1
2
3
Q1 Q2 Q3 Q4
Quarterly E
BIT
A (EUR m
illion)
2008
2009
2010
22
DenmarkEBITA improving from H1 but still negative, outlook improving
� Sales declined 14% in Q3 compared to 2009 but
grew 25% compared to Q2/10
� Construction activity low in Denmark in H1/2010
� Slight improvement in utilisation rates; price
competition slightly subsiding
� Outlook for the rest of 2010 and particularly 2011
more positive
� Profitability remained unsatisfactory in Q3� The result includes reorganisation costs and credit
losses and change in credit loss provisions of EUR
1,6m (EUR 3,3m) and an impairment loss of EUR
0,4m on fleet
� Increasing profitability is the key objective in 2010
� Euroconstruct* estimates construction output to
decrease by 3% in 2010 but to improve 4% in 2011
* Euroconstruct, June 2010
Highlights Sales by quarter
EBITA by quarter
10,5
11,9 11,8
10,3
8,5 8,89,7 9,3
5,76,7
8,4
0
2
4
6
8
10
12
14
Q1 Q2 Q3 Q4
Quarterly s
ale
s (EUR m
illion)
2008
2009
2010
-0,2
0,50,2
-3,4
-1,7
-1,2-1,6
-4,4
-3,2
-1,3-0,8
-5
-4
-3
-2
-1
0
1
Q1 Q2 Q3 Q4
Quarterly E
BIT
A (EUR m
illion)
2008
2009
2010
Change Change
(EUR 1 000) % %
Sales 8 395 9 747 -13,9 % 20 863 27 028 -22,8 % 36 303
EBITA -831 -1 571 47,1 % -5 322 -4 471 -19,0 % -8 860
EBITA-% -9,9 % -16,1 % -25,5 % -16,5 % -24,4 %
7-9/
2010
7-9/
2009
1-9/
2010
1-9/
2009
1-12/
2009
23
Change Change
(EUR 1 000) % %
Sales 14 361 11 979 19,9 % 34 073 32 787 3,9 % 44 119
EBITA -1 488 -3 008 50,5 % -10 374 -12 440 16,6 % -17 631
EBITA-% -10,4 % -25,1 % -30,4 % -37,9 % -40,0 %
1-12/
2009
7-9/
2010
7-9/
2009
1-9/
2010
1-9/
2009
Central and Eastern Europe*Sales increasing in Russia and Poland, restructuring starting to bear fruit
� Sales in Q3 showed a strong upturn of 19,9% compared to Q3/2009 (15,1% in local currency)
� Growth was particularly strong in Russia in Q3, but sales improved in nearly all countries
� Fleet utilisation rates improved to a good level in almost all of the CEE countries, the impact of price increases is not yet visible in the result
� EBITA continued to be negative in Q3
� Result affected by reorganisation costs, credit losses and an increase in credit loss provisions of EUR 2,2m (EUR 3,0m) in Q1-Q3
� Profitability improvement and utilising opportunities for growth are key targets for 2010
� Euroconstruct*** forecasts growth in 2010 for Poland, Slovakia and possibly Russia and further improvement in 2011 in all CEE markets
* Includes Estonia, Latvia, Lithuania, Poland, the Czech Republic, Slovakia, and Russia
** Change in sales measured in local currency
*** Euroconstruct, June 2010
Highlights
15,1%**(local curr.)
Sales by quarter
EBITA by quarter
-1,6%**(local curr.)
14,2
19,9
23,6
19,8
10,4 10,412,0 11,3
9,010,7
14,4
0
5
10
15
20
25
Q1 Q2 Q3 Q4
Quarterly s
ale
s (EUR m
illion)
2008
2009
2010
1,5
2,8
5,4
0,2
-4,9 -4,5
-3,0
-5,2-4,8-4,0
-1,5
-6
-4
-2
0
2
4
6
Q1 Q2 Q3 Q4Quarterly E
BIT
A (EUR m
illion)
2008
2009
2010
24
New strategy and short-term outlook
25
Strategic and operational development 2006-
2006-08 2009-H1/2010 H2/2010-
• High profitable growth
• Focus on:
– integration of the Cramo acquisition
– growth into Eastern Europe while exiting Netherlands, both organically and through acquisitions
– grow market shares while maintaining good profitability
– achieve leadership in rental business development
• Recognition: Rental company of the year in 2008 (ERA price given for the first time)
• Economic downturn
• Focus on:
– strong cash flow after
investments and clear
net debt reduction
– cost adjustments in all
OpCos, while maintaining
best possible profitability
– adding flexibility and
efficiency
– group-wide fleet
optimisation
• Maintain innovativeness:
Continuous development
of new offerings and
concepts
• Maintain strong market
position on which to
capitalise when the new
growth phase begins
• New growth phase
• New strategy 2010-13
– focus on further optimising
on Group synergies and
Cramo’s unified business
model
– focus on further profitable
growth while rolling out
Cramo’s core competences,
and in winning next markets
26
New mission, vision and strategy 2010-13
Mission = why we exist, which business are we in
“Building flexibility and efficiency
through rental solutions”
Vision = what do we want to be
“The role model in rental”
Strategy = how do we compete and achieve our targets
“Rolling out the Cramo Concept with Cramo Processesand Cramo People”
27
Strategic and financial targets 2010 – 2013
Strategic
targets
2010-13
Strategic
targets
2010-13
• Customer’s first choice
• Best in town: #1 or possibility to become #1
• Grow profitably faster than the market
• Driver of rental development
• Customer’s first choice
• Best in town: #1 or possibility to become #1
• Grow profitably faster than the market
• Driver of rental development
Financial
targets
2010-13
Financial
targets
2010-13
• Sales growth > 10 % p.a.
• EBITA-% > 15 %
• ROE-% > 15 %
• Gearing maximum 100 %
• Profit distribution policy: About one third
• Sales growth > 10 % p.a.
• EBITA-% > 15 %
• ROE-% > 15 %
• Gearing maximum 100 %
• Profit distribution policy: About one third
28
0 %
20 %
40 %
60 %
80 %
100 %
120 %
140 %
160 %
180 %
Q1/0
7
Q2/0
7
Q3/0
7
Q4/0
7
Q1/0
8
Q2/0
8
Q3/0
8
Q4/0
8
Q1/0
9
Q2/0
9
Q3/0
9
Q4/0
9
Q1/1
0
Q2/1
0
Q3/1
0
Gearing %
Gearing % New target 2010-13
0 %
5 %
10 %
15 %
20 %
25 %
Q1/0
7
Q2/0
7
Q3/0
7
Q4/0
7
Q1/0
8
Q2/0
8
Q3/0
8
Q4/0
8
Q1/0
9
Q2/0
9
Q3/0
9
Q4/0
9
Q1/1
0
Q2/1
0
Q3/1
0
R12M E
BITA m
arg
in %
EBITA % R12M New target 2010-13
Financial targets in historical perspectiveGrowth, EBITA and ROE targets were met before the downturnNew gearing target guides towards a stronger balance sheet
Sales growth EBITA margin
Return on equity Gearing
New target: >10% New target: >15%
New target: >15%New target:
max.100%
-30 %
-20 %
-10 %
0 %
10 %
20 %
30 %
Q1/0
7
Q2/0
7
Q3/0
7
Q4/0
7
Q1/0
8
Q2/0
8
Q3/0
8
Q4/0
8
Q1/0
9
Q2/0
9
Q3/0
9
Q4/0
9
Q1/1
0
Q2/1
0
Q3/1
0
R12M sales g
rowth
, y-o
-y %
Sales growth R12M New target 2010-13
-15 %
-10 %
-5 %
0 %
5 %
10 %
15 %
20 %
25 %
Q1/0
7
Q2/0
7
Q3/0
7
Q4/0
7
Q1/0
8
Q2/0
8
Q3/0
8
Q4/0
8
Q1/0
9
Q2/0
9
Q3/0
9
Q4/0
9
Q1/1
0
Q2/1
0
Q3/1
0
ROE %
ROE % New target 2010-13
29
Must-Win Battles for 2010-13
11• Renew Cramo Concept: Roll out the renewed
Cramo Concept to all Cramo markets• Renew Cramo Concept: Roll out the renewed
Cramo Concept to all Cramo markets
22• Implement Cramo Processes: Implement
unified Cramo Processes throughout the Group• Implement Cramo Processes: Implement
unified Cramo Processes throughout the Group
33• Develop Cramo People: Develop Cramo
People to be passionate rental business champions
• Develop Cramo People: Develop Cramo People to be passionate rental business champions
44• Be “Best in Town”, Win Next Markets:
Penetrate successfully new geographic markets
• Be “Best in Town”, Win Next Markets: Penetrate successfully new geographic markets
55• Drive Modular Space Growth: Drive profitable
growth in non-construction modular space outside Finland and Sweden
• Drive Modular Space Growth: Drive profitable growth in non-construction modular space outside Finland and Sweden
30
Future prospectsShort-term outlook: Markets are improving
� The construction and equipment rental service markets are expected to grow in Cramo’s market areas in the fourth quarter of 2010 and in 2011.
� According to market forecasts, construction activity started to increase in 2010 in Finland, Sweden and possibly also in Russia. In Poland, growth is expected to continue. However, construction activity in Norway, Denmark, the Czech Republic and the Baltic countries is expected to decline on an annual level. The outlook for construction growth is positive for 2011 in all of Cramo’sbusiness segments.
� The demand for rental services is expected to increase during the fourth quarter of 2010 and continuing into 2011.
� The Group's gross capital expenditure, excluding acquisitions and business combinations, will be approximately EUR 40 million in 2010.
� The Group has modified its guidance concerning the outlook. The new guidance reads: ”The equipment rental market is improving. Gearing to go down in 2010 based on steady positive cash flow. EBITA margin to improve compared with 2009.”
Appendix
32
Key figures
*) Change over 100%
Change Change
EUR (1 000) % %
INCOME STATEMENT
Sales 130 356 115 089 13,3 % 345 719 331 274 4,4 % 446 676
EBITDA 36 461 31 087 17,3 % 83 889 80 938 3,6 % 105 955
Operating profit (EBITA) before amortisation and impairment of
intangible assets resulting from acquisitions
15 153 9 577 58,2 % 20 422 15 899 28,4 % 17 286
Operating profit/loss (EBIT) 13 315 7 838 69,9 % 15 278 10 799 41,5 % -11 467
Profit/Loss before tax (EBT) 7 186 2 051 *) -3 564 -6 708 46,9 % -34 202
Profit/Loss for the period 1 786 -998 *) -10 567 -12 373 14,6 % -39 858
SHARE-RELATED INFORMATION
Earnings per share (EPS), EUR 0,06 -0,03 *) -0,35 -0,40 12,5 % -1,30
Earnings per share (EPS), diluted, EUR 0,06 -0,03 *) -0,34 -0,40 15,0 % -1,28
Shareholders' equity per share, EUR 10,03 10,37 -3,3 % 9,50
BALANCE SHEET
Equity ratio, % 38,5 % 38,0 % 37,4 %
Gearing, % 107,5 % 113,1 % 113,4 %
Net interest-bearing liabilities 381 050 412 664 -7,7 % 383 682
OTHER INFORMATION
Return on investment, rolling 12-month, % -0,7 % 3,0 % -1,2 %
Return on equity, rolling 12-month, % -10,6 % -1,6 % -12,1 %
Gross capital expenditure (incl. acquisitions) 33 204 25 318 31,1 % 31 931
% of sales 9,6 % 7,6 % 7,1 %
Cash flow after investments 26 732 35 274 -24,2 % 65 403
Average number of personnel (FTE) 2 070 2 443 -15,3 % 2 356
Number of personnel at end of period (FTE) 2 131 2 239 -4,8 % 2 018
1-12/
2009
7-9/
2010
7-9/
2009
1-9/
2010
1-9/
2009
33
Consolidated income statement
*) Change over 100%
Change Change
EUR (1 000) % %
SALES 130 356 115 089 13,3 % 345 719 331 274 4,4 % 446 676
Other operating income 1 432 1 046 36,9 % 10 856 3 140 *) 7 262
Change in inventories of finished goods and
work in progress
1 156 482 *) 1 875 -34 *) -1 486
Production for own use 1 811 2 330 -22,3 % 2 575 7 539 -65,8 % 9 148
Materials and services -48 343 -37 528 -28,8 % -124 507 -106 876 -16,5 % -150 882
Employee benefit expenses -23 953 -25 501 6,1 % -73 585 -79 231 7,1 % -103 062
Other operating expenses -25 998 -24 832 -4,7 % -79 044 -74 874 -5,6 % -101 700
Depreciation and impairment on tangible assets
and assets available for sale
-21 308 -21 510 0,9 % -63 467 -65 039 2,4 % -88 669
EBITA 15 153 9 577 58,2 % 20 422 15 899 28,4 % 17 286
% of sales 11,6 % 8,3 % 5,9 % 4,8 % 3,9 %
Amortisation and impairment on intangible
assets resulting from acquisitions
-1 838 -1 738 -5,8 % -5 144 -5 100 -0,9 % -28 754
OPERATING PROFIT/LOSS (EBIT) 13 315 7 838 69,9 % 15 278 10 799 41,5 % -11 467
% of sales 10,2 % 6,8 % 4,4 % 3,3 % -2,6 %
Finance costs (net) -6 130 -5 787 -5,9 % -18 842 -17 507 -7,6 % -22 734
PROFIT/LOSS BEFORE TAXES 7 186 2 051 *) -3 564 -6 708 46,9 % -34 202
% of sales 5,5 % 1,8 % -1,0 % -2,0 % -7,7 %
Income taxes -5 399 -3 049 -77,1 % -7 002 -5 665 -23,6 % -5 657
PROFIT/LOSS FOR THE PERIOD 1 786 -998 *) -10 567 -12 373 14,6 % -39 858
% of sales 1,4 % -0,9 % -3,1 % -3,7 % -8,9 %
1-12/
2009
7-9/
2010
7-9/
2009
1-9/
2010
1-9/
2009
34
Consolidated balance sheet
*) Change over 100%
30.9. 30.9. Change 31.12.
EUR (1 000) 2010 2009 % 2009
ASSETS
NON-CURRENT ASSETS
Tangible assets 505 976 548 442 -7,7 % 522 191
Goodwill 146 740 154 487 -5,0 % 137 339
Other intangible assets 91 881 97 610 -5,9 % 90 843
Deferred tax assets 14 904 18 667 -20,2 % 19 137
Available-for-sale financial investments 344 340 1,2 % 340
Derivative financial instruments 0 369 -100,0 % 238
Trade and other receivables 2 954 2 880 2,6 % 4 990
TOTAL NON-CURRENT ASSETS 762 800 822 797 -7,3 % 775 079
CURRENT ASSETS
Inventories 15 786 13 435 17,5 % 11 591
Trade and other receivables 122 402 105 970 15,5 % 99 526
Income tax receivables 11 063 9 527 16,1 % 6 599
Derivative financial instruments 1 054 759 38,9 % 898
Cash and cash equivalents 14 541 16 152 -10,0 % 18 520
TOTAL CURRENT ASSETS 164 846 145 843 13,0 % 137 134
Assets available for sale 2 838 5 951 -52,3 % 6 148
TOTAL ASSETS 930 484 974 591 -4,5 % 918 360
30.9. 30.9. Change 31.12.
EUR (1 000) 2010 2009 % 2009
EQUITY AND LIABILITIES
EQUITY
Share capital 24 835 24 835 0,0 % 24 835
Share premium fund 186 926 186 910 0,0 % 186 910
Fair value reserve 117 117 0,0 % 117
Hedging fund -2 571 -2 422 -6,2 % -2 296
Translation differences 583 -17 301 *) -12 431
Retained earnings 94 567 122 649 -22,9 % 91 117
EQUITY ATTRIBUTABLE TO SHARE-
HOLDERS OF THE PARENT COMPANY 304 456 314 788 -3,3 % 288 252
Non-controlling interest 503 503 0,0 % 503
Hybrid capital 49 630 49 630 0,0 % 49 630
TOTAL EQUITY 354 589 364 921 -2,8 % 338 385
NON-CURRENT LIABILITIES
Interest-bearing liabilities 324 568 295 174 10,0 % 351 606
Derivative financial instruments 5 284 4 315 22,5 % 3 809
Deferred tax liabilities 76 435 78 263 -2,3 % 79 036
Provisions 0 107 -100,0 % 0
Other non-current liabilities 1 729 6 465 -73,3 % 6 816
TOTAL NON-CURRENT LIABILITIES 408 016 384 324 6,2 % 441 267
CURRENT LIABILITIES
Interest-bearing liabilities 71 024 133 642 -46,9 % 50 596
Derivative financial instruments 1 146 2 286 -49,9 % 680
Trade and other payables 90 611 81 361 11,4 % 82 855
Income tax liabilities 5 098 8 057 -36,7 % 4 576
TOTAL CURRENT LIABILITIES 167 879 225 346 -25,5 % 138 707
TOTAL LIABILITIES 575 895 609 670 -5,5 % 579 975
TOTAL EQUITY AND
LIABILITIES 930 484 974 591 -4,5 % 918 360
35
Cash flow statement
1-9/ 1-9/ 1-12/
EUR (1 000) 2010 2009 2009
Net cash flow from operating activities 29 501 49 903 76 565
Net cash flow from investing activities -2 769 -14 629 -11 162
Cash flow from financing activities
Change in interest-bearing receivables 100 92 94
Change in finance lease liabilities -28 552 -17 153 -25 806
Change in interest-bearing liabilities 3 389 -51 423 -69 209
Hybrid capital -6 000 49 500 49 500
Acquisition of own shares -500 -2 480
Related-party investments 503
Dividends paid -6 132 -6 132
Net cash flow from financing activities -31 062 -25 616 -53 530
Change in cash and cash equivalents -4 330 9 658 11 873
Cash and cash equivalents at period start 18 520 8 123 8 123
Translation differences 351 -1 629 -1 476
Cash and cash equivalents at period end 14 541 16 152 18 520
36
Segment performance
*) Change over 100%
Change Change
SALES, EUR (1 000) % %
Finland 27 430 23 834 15,1 % 69 181 69 686 -0,7 % 92 067
Sweden 64 839 55 296 17,3 % 177 337 158 302 12,0 % 215 675
Norway 17 023 15 615 9,0 % 49 453 47 108 5,0 % 63 427
Denmark 8 395 9 747 -13,9 % 20 863 27 028 -22,8 % 36 303
Central and Eastern Europe 14 361 11 979 19,9 % 34 073 32 787 3,9 % 44 119
Inter-segment sales -1 693 -1 382 -22,5 % -5 187 -3 637 -42,6 % -4 915
Group sales 130 356 115 089 13,3 % 345 719 331 274 4,4 % 446 676
Change Change
EBITA, EUR (1 000) % %
Finland 6 105 4 291 42,3 % 9 201 7 052 30,5 % 10 704
Sweden 12 332 11 084 11,3 % 26 586 28 197 -5,7 % 36 026
Norway 310 853 -63,7 % -96 3 124 *) 3 995
Denmark -831 -1 571 47,1 % -5 322 -4 471 -19,0 % -8 860
Central and Eastern Europe -1 488 -3 008 50,5 % -10 374 -12 440 16,6 % -17 631
Non-allocated capital gains and other income 5 746 1 031
Non-allocated Group activities -1 304 -2 052 36,5 % -5 308 -5 579 4,9 % -8 013
Eliminations 29 -21 *) -10 17 *) 34
Group EBITA 15 153 9 577 58,2 % 20 422 15 899 28,4 % 17 286
1-12/
2009
7-9/
2010
7-9/
2009
1-9/
2010
1-9/
2009
1-12/
2009
7-9/
2010
7-9/
2009
1-9/
2010
1-9/
2009
37
Modular space order bookOrder book declined slightly from Q2/2010; share of rental increased
*In Q1/2010 there was an external sale of some modules
72,6
77,3 78,582,0
97,693,7
88,9
94,699,2
101,0
111,9
106,8
94,597,5 96,3
102,8
86,1
92,988,7
0
20
40
60
80
100
120Q
1/0
6
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
Ord
er book (EUR m
)
0 %
10 %
20 %
30 %
40 %
50 %
60 %
70 %
80 %
90 %
100 %
Share
of re
nta
l (% o
f tota
l ord
er b
ook)
Rental Sales Share of rental (% of total order book)
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