CRAMO GROUP SHAPING THE FUTURE SEB NORDIC SEMINAR 2019 COPENHAGEN, JANUARY 8, 2019 LEIF GUSTAFSSON, PRESIDENT AND CEO

Transcription

1 CRAMO GROUP SHAPING THE FUTURE SEB NORDIC SEMINAR 2019 COPENHAGEN, JANUARY 8, 2019 LEIF GUSTAFSSON, PRESIDENT AND CEO

2 AGENDA A sustainable business Business segments: Equipment Rental Modular Space Shape & Share strategy Financials Summary

3 Cramo is a rental solutions provider in machinery, equipment and modular space with a sustainable business model.

4 CRAMO IN BRIEF (2017) #2 in Europe #1 #2 in the Nordics (MS) in Europe Norway Finland Russia depots 14 countries Denmark Sweden Estonia Lithuania Germany Poland Ukraine Plan to exit Ukraine ,000 customers 230,000 rental units Cramo Fortrent Czech Rep. Austria Slovakia Hungary

5 SHAPE AND SHARE STRATEGY

6 STRATEGIC STEPS Growth Building a new footprint in chosen markets Targeting organic and inorganic growth Continuously evaluating potential acquisitions target companies and striving for a leading position in chosen markets Optimise Shaping the business structure and model Enhancing the performance culture Creating a new digital concept Striving for zero accidents Align Implementing Group-wide processes and tools Living the Cramo Story Establishing the renewed Cramo Care

7 AN EVENTFUL 2018 Acquisitions Performance Operations & Market Acquisition of Nordic Modular Group Enterprise value of BSEK Sales of 779 MSEK and EBITA of 160 MSEK (2017) Sales increased by 4.6% Rolling 12M (09/2018), to reach 759 MEUR Sales driven by good performance in both business divisions Assessment of potential separation and listing of Modular Space Cramo has decided to pursuit towards separation of MS business through a partial demerger mid 2019 Acquisition of KBS Group A leading, high-quality construction site logistics company in Germany in 2018 Comparable EBITA, R12M (09/2018), amounted to 128 MEUR, a 6.5% increase, corresponding to a margin of 16.9 percent Market environment has remained good for both business divisions Market growth in Sweden has been levelling out during second half of 2018 The acquisitions are expected to have a positive effect on EPS in 2019 Focus on integration during 2019 Comparable earnings per share amounted to 2.06 EUR in R12M (09/2018) from 1.87 EUR R12M 2017 Continued strengthening of organization and management Fortrent to continue Russian operations and exit Ukraine

8 CAPTURING OPPORTUNITIES IN A CHANGING WORLD MEGATRENDS DRIVERS Migration Urbanisation Demographic changes Scarcity of resources CRAMO SHARING ECONOMY Digitalization Sustainable development

9 CREATING VALUE COMMITMENT AND PRINCIPLES Code of Conduct and Business Ethics Supplier Code of Conduct UN Global Compact ISO CUSTOMER CARE EMPLOYEE CARE STRATEGIC DRIVERS Driving the sharing economy Shaping the industry Stakeholder expectations for more sustainable operations Resource and operational efficiency Changing the operating environment Increased transparency and more stringent ethics Customer satisfaction Health and safety Resource efficiency Business ethics Responsible suppliers ENVIRONMENTAL CARE Resource efficiency Reduced environmental footprint Increased circularity Employee satisfaction Health and safety Skills development Diversity and equality SOCIAL CARE Local engagement Business ethics VALUE ADDED Growth Risk management Return on capital Skilled, committed employees Innovative corporate culture Competitive edge

10 THE KEY ELEMENTS CRAMO CARE #1 Cramo as an active shaper of the rental industry, a driver of the sharing economy. #3 Overall responsibility lies with Group Management, whereas operational responsibility and employee engagement lie with country managers. #2 Value creating targets include both financial and non-financial objectives. #4 Relevance and continuous improvement are strengthened through an active dialogue with all stakeholder groups.

11 DIGITAL VISION AND MISSION Vision Digital change leaders Mission Easy, accessible, always open channels that adds value Shapers, not followers!

12 CRAMO PROVIDES 3 GREAT DIGITAL TOOLS E-commerce and customer portal RENT, MANAGE AND RETURN EQUIPMENT ONLINE Optimised for desktop mobile and tablet Search equipment and product data Check product availability Rent for selected jobsite Choose between transport and pick-up Manage rentals and view rental details at each jobsite Order return transportation Check invoices View rental dashboards and export data Product viewer FOR PRODUCT DATA AND DOCUMENTS Scan the product number on the machine or input it manually. The app shows data for each unique machine Examine vital product info such as measurements, power supply, noise, vibration etc. Access user manuals View all PSI-documents gathered in one place MyEquip DESIGNED FOR ON-SITE RENTAL MANAGEMENT Manage equipment and material on rent, not only products from Cramo Get information if equipment is returned Easily communicate picklists with colleagues or with Cramo when a return is needed Operate with Cramo after office hours

13 TWO BUSINESS DIVISIONS TO STAND TALL ON

14 EQUIPMENT RENTAL MODULAR SPACE

15 EQUIPMENT RENTAL* MODULAR SPACE* (excluding NMG) 458 MEUR 74 MEUR 105 MEUR 27 MEUR IN SALES (+3.4%) COMP. EBITA (+2.5%) IN SALES (+15.9%) EBITA (+27.1%) 14.7% COMP. ROCE (-0.2 PP) 16.3% COMP. EBITA MARGIN (-0.1 PP) 10.1% ROCE (+0.4 PP) 25.8% EBITA MARGIN (+2.3 PP) Share of sales Share of EBITA Share of sales Share of EBITA 23% 23% 77% 27% 73% 77% 73% 27% *January-September 2018 (vs 2017), excl non-allocated Group function costs

16 POTENTIAL SPLIT - RATIONALE Capturing the full business potential Growth Increase opportunity to optimise operational efficiency and create value Creating conditions for greater shareholder value with two stand-alone companies that can grow stronger separately Competitive strength Increase competitiveness through specialisation Financial clarity Two clear investment options with different risk and growth profiles

17 EQUIPMENT RENTAL

18 BUSINESS SEGMENTS (R12M SEPTEMBER 2018) ER Scandinavia ER Finland and Eastern Europe ER Central Europe Sales by customer group Net sales (MEUR) Net sales (MEUR) Net sales (MEUR) Households 2% Other 5% Public sector 11% Norway Sweden EBITA (margin-%) 74 (20%) Finland Estonia Lithuania EBITA (margin-%) 22 (15%) EBITA (margin-%) 8 (8%) Other industries 23% Construction industry 59% ROCE Poland ROCE Germany ROCE 19% 11% Czech Rep. Austria Slovakia Hungary 6% Sales by customer group proportions calculated with 2017 FY sales EBITA and ROCE figures are presented as comparable figures excluding IAC s

19 EQUIPMENT RENTAL 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 and environmental services, equipment and training. Comprehensive range of tools and complete package solutions in building equipment. Site huts adaptable for various purposes and capacity needs. Access equipment with comprehensive safety solutions for working at heights. Modern, comprehensive fleet of construction equipment for any type of assignments, from major road projects to small-scale jobs as well as industrial projects.

20 Well-known brand Strong customer base Clear position in sharing economy Proven track record of acquisitions

21 MODULAR SPACE

22 COMBINED COMPANY IN BRIEF Business overview (Cramo Adapteo + Nordic Modular Group) KEY FINANCIALS R12M September 2018 Net sales (MEUR) 226 EBITA (MEUR) 51 (22.5%) CUSTOMER SEGMENTS School Day care Office Accommodation Events OFFICE NETWORK 23 sales offices in 7 countries PERSONNEL 392 people RENTAL MODULES ~31,000 *NMG reporting standards may differ from Cramo Group **Cramo Adapteo figures are based on the modular space segment reporting

23 MODULAR SPACE 1 PLANNING Analysing customer needs and designing the optimal solution together. DELIVERY Transport of modules and assembly of the temporary space solution. 2 PROJECT TIMELINE PROJECT TIMELINE 4 RETURN Disassembly of the temporary space solution, site restoration and off-site transport. RENTAL PERIOD 3 Rental period varying from two to five years, maintenance and other services available during renting. PROJECT TIMELINE PROJECT TIMELINE

24 SERVED CUSTOMER SEGMENTS OFFICES DAYCARE ACCOMMODATION SCHOOLS EVENTS Offices

25 Recurring revenues Non-cyclic business logic Growing market Attractive customer base Flexible premium solutions

26 FINANCIALS

27 FINANCIAL TARGETS CRAMO GROUP Net Debt / EBITDA < 3x ROE > 15% DIVIDEND PAYOUT RATIO ~40% EQUIPMENT RENTAL Organic sales growth > market ROCE > 14.5% MODULAR SPACE Double digit organic rental sales growth ROCE > 12.5% * Financial targets: on average during * ROCE = EBIT / capital employed (average)

28 FINANCIAL TARGET REALISATION EQUIPMENT RENTAL MODULAR SPACE * Target to grow faster than market. Market growth 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 and IFRS changes

29 SUMMARY

30 MEUR STRONG HISTORY OF GROWTH AND PROFITABILITY % 16% 17% % 16% 14% % 12% % 10% 680 % % % 6% 620 4% 600 2% R12M/Sep 2018 Sales EBITA margin 0%

31 Leading player with sustainable business in a growing market Solid business model supported by megatrends and sharing economy Potential for further value creation Attractive cash flow generation and dividend Ready to capture the potential in innovation and digitalization

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