CRAMO PLC Capital Markets Day CRAMO IN BRIEF AND CRAMO GROUP - - PowerPoint PPT Presentation

CRAMO PLC

Capital Markets Day CRAMO IN BRIEF AND CRAMO GROUP STRATEGY

Vesa Koivula, President and CEO 9 September 2014

FOR A GREAT DAY AT WORK

Cramo Capital Markets Day 9 September 2014

2

AGENDA

10.00 Depot tour at Bredden depot Cramo Bredden, Bergkällavägen 25, 192 79 Sollentuna 12.00 Light lunch Radisson Blu Strand Hotel 13.00 Introduction Cramo in brief and Cramo Group strategy Vesa Koivula, CEO Vesa Koivula, CEO 13.30 Financial targets and their realisation with Must-win battles Martti Ala-Härkönen, CFO 14.00 Overview of Cramo Story and dynamic pricing at Cramo Erik Bengtsson, EVP, Scandinavia Per Lundquist, SVP, Operations 14.30 Coffee break Business segment overviews 14.50 Profitable growth in Finland and Eastern Europe Tatu Hauhio, EVP, Eastern Europe 15.20 Profitable growth in Sweden, Norway and Denmark Erik Bengtsson, EVP, Scandinavia 15.50 Coffee break 16.10 Win Central European market Dirk Schlitzkus, EVP, Central Europe 16.40 Modular space growth strategy Petri Moksén, SVP, Modular space 17.10 Summary, Q & A Vesa Koivula, CEO 18.00 Evening programme – Dinner cruise 21.00 Closing

General disclaimer

• Cramo Group’s Capital Market Day presentations held on

September 9, 2014 include certain forward-looking statements based on the management’s expectations at the time they are

• made. These involve risks and uncertainties and are subject

to change due to changes in general economic and industry conditions.

3

4

Agenda

Cramo in brief and Cramo Group strategy Cramo Group today

1

Cramo Group strategy update 2014

2

Cramo in brief

A leading equipment rental service company

Russia Denmark Germany Poland Czech Republic Austria Hungary Slovakia Ukraine Belarus Lithuania Latvia Estonia Norway Sweden Finland Romania Moldova Bulgaria Slovenia Croatia Bosnia and Herzegovina Serbia Macedonia Albania Kalinin- grad

• Cramo is one of the largest equipment rental service companies in Europe,

with operations in 15 countries and 2013 sales of EUR 657 million

• Cramo is also the no.1 player in both construction and non-construction

modular space in the Nordic countries

• In 2013, Cramo posted EBITA of EUR 80 million (12.2% of sales)
• The company operates under the Cramo brand in Nordic and Baltic countries,

Poland and the Czech Republic. In Germany, Austria and Hungary, under Theisen Baumaschinen brand, and in Russia and Ukraine under the brand of Fortrent (50% owned JV)

• In addition to strong market position and brand, Cramo’s key strength is

extensive rental concept combined with flexible business model and

• perational efficiency
• Cramo's 2.500 employees serve over 150.000 customers
• Cramo was founded in 1953 and is listed on the Helsinki Stock Exchange

2013 sales by industry segment 2013 sales by product group* 2013 sales by business segment

14 countries + Fortrent in Russia and Ukraine Number of depots 348

48 % 15 % 14 % 4 % 11 % 8 % Sweden Finland Norway Denmark Central Europe Eastern Europe 55 % 24 % 15 % 3 % 4 % Construction Other Industry Public sector Households Other

* Sales generated from rental-related services have been allocated to product groups

5

31 % 17 % 23 % 12 % 14 % 2 % Tools

• Constr. equipment

Access equipment Modular space Site huts Other

Cramo Rental Concept

A dynamic business model for equipment rental Flexible customer-specific solutions Continuous innovation of new services and solutions

External training (Cramo School) Operators Transport Scaffolding & rack/pinion hoist services Heating services Humidity control services Modular space services Cramo Rental Insurance Cramo Bonus Work Instructions Cramo Shop General customer support Repair and maintenance 24/7 technical support Temporary electricity QSE services Moisture damage services Air quality management Construction site services Trading services Dry Construction Cramo Safety Cramo Smart Energy Cramo Security Crew Camp Solutions Clean House Cramo Project Cramo Long Term Cramo Outsourcing Cramo Flexi Cramo Direct Cramo Business Support

Services Solutions Rental options Customer support elements Product offering

Access equipment Construction equipment Site huts Modular space Tools

6

11 % 16 % 15 % 57 % 5 10 15 20 25 Total market breakdown (2013 industry rental turnover, BEUR)

100 200 300 400 500 600 700 800 900 Loxam Cramo Ramirent Algeco Scotsman Kiloutou Sarens Speedy Hire Liebherr-Mietpartner Mediaco Levage Zeppelin Rental Boels Verhuur HKL Baumaschinen HSS Hire Aggreko Ashtead Group Lavendon Group plc Revenue, MEUR (2013)

Overall European market Rental operators in the European equipment rental market

7

Cramo was #2 in Europe in 2013

Source: European Rental Association, The European Equipment Rental Industry 2013 Report, October 2013; ERA Convention, June 2014 and International Rental News, June 2014

> 500 MEUR, n=4 > 200 MEUR, n=16

Top 4 players Top 5-16 players Top 17-47 players <50 MEUR revenue

> 50 MEUR, n=47

~23 BEUR

0% 5% 10% 15% 20% 25% 100 200 300 400 500 600 700 800 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Sales (€ m)

Cramo has gained its strong market position through international expansion

8

Domestic growth International expansion Operational excellence Main focus on harmonised processes and concepts Main focus on international growth

EBITA margin (%)

Cramo Group Sales Cramo Group EBITA-% Acquisition of Cramo Group Acquisition of Theisen Group

Strategic theme

Cramo Group today

9

Agenda

Cramo in brief and Cramo Group strategy

1

Cramo Group strategy update 2014

2

Cramo’s Must-Win Battles defined in 2010 have largely been won

Must-Win Battles 2010-2014 Key Achievements Current Status

1

Roll-out the Cramo Rental Concept

• Renewed Cramo Rental Concept

implemented in all key markets

• Dynamic pricing introduced in

Sweden

• Continue implementation and best

practice sharing across the Group

• Further roll out dynamic pricing

2

Implement Cramo Processes

• Harmonised rental platform

implemented in the Nordics and Germany

• Harmonised processes
• Continue implementation, benefit

harvesting and best practice sharing across the Group

3

Develop Cramo People

• Cramo training and career

development program implemented

• One Cramo share program
• Continue implementation and best

practice sharing across the Group

4

Implement Cramo Performance Management

• Cramo Performance Management

model implemented down to depot level in all countries

• Continue implementation and best

practice sharing across the group

5

Drive Profitable Growth in Modular Space

• Profitable growth targets achieved

in Norway and Denmark

• Foothold established in Germany,

the Baltics and Poland

• Further strengthen #1 position in the

Nordics

• Continue expansion outside the

Nordics

Significantly more capable organization with harmonized business concepts and processes supported by industry leading systems

    

10

11

Cramo Group’s new Must-Win Battles

Transition from five mostly accomplished MWBs to three focused MWBs Strategy designed for 2014-16, but annual review standard procedure

Roll out the Cramo Rental Concept Implement Cramo Processes Develop Cramo People Implement Cramo Performance Management Drive Profitable Growth in Modular Space

1 2 3 4 5

Deliver Cramo Story Drive Cramo Performance Management Win Central European market

1 2 3

• Continue to implement and benefit

from harmonised business concepts, processes and systems

• Increase customer and people focus

to differentiate from competition

• Widen the proven concept of

performance management to all key areas of operation

• Capitalise on the potential in Central

Europe

    

0% 5% 10% 15% 20% 25% 100 200 300 400 500 600 700 800 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Sales (€ m)

Combining operational excellence with Cramo Story

Focus on profitable growth – organically and backed by selected M&A

12

Domestic growth International expansion Operational excellence Main focus on harmonised processes and concepts Main focus on international growth

EBITA margin (%)

Cramo Group Sales Cramo Group EBITA-% Acquisition of Cramo Group Acquisition of Theisen Group

Strategic theme

Cramo Story Main focus on customer and profitable growth

A GREAT DAY AT WORK

What do we want to achieve with the Cramo Story?

CRAMO IS THE ROLE MODEL FOR ALL RENTAL

13

A GREAT DAY AT WORK

Our promise to our customers

A GREAT DAY AT WORK

14

Strategy = how do we compete and achieve our targets

“Cramo People living the Cramo Story”

Vision = what do we want to be

“The role model in all rental”

Core Purpose = why we exist, which business are we in

“Contribute to customers’ success by preventing and solving problems – Making lives easier”

Vision, strategy statement and core purpose

15

16

Specific strategic initiatives in addition to MWBs

Core strategy to be backed by three specific work streams

• FIN and SWE: Maintain clear

market leading positions, continuous development

• NOR and DEN: Continue to

strengthen positions

• Baltics: Drive promising modular

space market development

• Germany: Capitalise on the

significant opportunities, introduction of Nordic modules, targeted acquisitions

Modular Space growth strategy Dynamic Pricing

1

• Dynamic pricing implemented in

all Nordic countries by Q2/14

• Increases pricing control
• Increases confidence in prices

and pricing structure through consistent methodology

• Target to extend rental periods,

increase sales and gain market share

• Implementation in Germany

planned for 2015

3

Mergers and acquisitions,

• utsourcing
• Regional market share plays an

important role in rental  consider bolt-on acquisitions

• Also, consolidated markets tend

to outperform fragmented ones

• Successful rental companies are

able to develop customer-centric

• fferings for various types of
• utsourcing transactions
• Outsourcing to be driven as far

as it is economically justifiable

2

Additional information for investors/stakeholders

Cramo has decided to disclose additional information related to its equipment rental and modular space operations on an annual basis

17

* As for 2013, the modular space product area covers only the modular space Nordic organisation. As for 2014, the financial information for modular space will also include the Baltic and German operations. In 2013, the sales of modular space in the Baltic countries, in addition to the sales of modular space presented above, was about EUR 0.7million.

Financial year 2013 EUR 1'000 Sales 577 670 81 058

• 1 412

657 315 EBITDA 143 987 38 248

• 8 419

173 816

% of sales 24,9 % 47,2 % 26,4 %

Depreciation

• 81 384
• 12 278
• 205
• 93 868

EBITA 62 603 25 970

• 8 624

79 948

% of sales 10,8 % 32,0 % 12,2 %

Invested capital 678 602 204 199

• 12 618

870 183 Equipment rental Modular space* Non-allocated and eliminations Group

In addition to organic growth, growth will be sought actively through acquisitions

18

Strategy outline Recent key mergers and acquisitions

• Acquisitions are an integral part of Cramo’s growth

strategy

• Cramo will be an active player in the European

consolidation

• Continuous evaluation of potential targets
• Focus on synergistic targets and shareholder

value

• Active search of synergistic acquisitions in Germany /

Central Europe

• Limited number of targets available in the Nordics
• No relevant targets in the Baltics
• Entry to new adjacent markets via acquisitions is an
• ption

Equipment rental

• Targeted acquisitions to strengthen position
• Focus on existing markets

Modular space

Lambertsson AS Kranpunkten AS

• Acquisition of Norwegian

rental businesses in 2/2013 Theisen Baumaschinen AG

• Entry to German

equipment rental market in 1/2011 C/S RaumCenter GmbH

• Entry to German modular

space market in 4/2014 Fortrent

• JV in Ukraine and Russia with Ramirent in 2013

Cramo has executed 39 business combinations since 2006

Summary: Cramo Group’s strategy

Core purpose Contribute to customers’ success by preventing and solving problems – Making lives easier Vision The role model in all rental Values Commitment Credibility Creativity Strategy crystallization: Cramo People living the Cramo Story Must-Win Battles Targets

EBITA-% > 15 % of sales over a business cycle

Gearing maximum 100 % ROE-% > 12 % over a business cycle

Profit distribution policy: stability, with appr. 40 % of EPS

Sales growth faster than the market

Deliver Cramo Story Drive Cramo Performance Management Win Central European market

19

CRAMO PLC

Capital Markets Day

FINANCIAL TARGETS AND THEIR REALIZATION WITH MUST-WIN BATTLES

Martti Ala-Härkönen, CFO 9 September 2014

FOR A GREAT DAY AT WORK

5.9 % 10.1 % Rental Market* Cramo Sales 3.9 % 7.0 % 10.5 % 11.3 % 12.2 % 2009 2010 2011 2012 2013

• 1.18
• 0.06

0.60 0.94 1.01 0.00 0.09 0.30 0.42 0.60

2009 2010 2011 2012 2013

• EBITA-% > 15%
• ver the

business cycle

• Gearing

maximum 100%

• Sales growth

faster than the market

• ROE > 12% over

the business cycle

• Payout policy:

Stability, with

• approx. 40 % of

EPS

EPS DPS

* Nominal rental market growth in current Cramo countries Source: ERA, management estimates

Implementation of previous MWBs in 2010-2013 has brought Cramo close to its financial targets

Profitability Leverage Sales Return on Equity Payout Policy

CAGRs 2009-2013

• 12.1 %
• 0.6 %

5.4 % 7.5 % 8.3 % 2009 2010 2011 2012 2013 113.4 % 103.4 % 78.7 % 65.1 % 72.9 % 2009 2010 2011 2012 2013

Target Level Target Level Target Level Target Level

21

The most important issues for Must-Win Battles are that they are focused, implementable across the

• rganisation and that they are spot-on to enhance profitability and growth to drive value creation

Criteria in deciding a Must-Win Battle

22 MWB#1 Touches a pivotal improvement point in the company Implementable down to all

• rdinary
• perations

Focused Understandable Communicable Genuine Cramo-like Impacts focally

• n profitability

and growth Designed through a top- down and down-top process MWB#2 MWB#3

1

• Deliver Cramo Story: Excel in

customer focus through Cramo People

3

• Win Central European

market: Implement Cramo Rental Concept and drive profitable growth

2

• Drive Cramo Performance

Management: Drive

• perational excellence

throughout all key operations

• Drive higher sales through true

differentiation from competitors − A further enhanced Cramo brand and corporate culture

• Improve profitability by promoting

continuous efficiency improvement, entrepreneurial mindset and best practice sharing across the organisation

• Winning Central Europe key to reach Group

financial targets and to capture long-term potential in Europe’s largest rental market

Cramo’s newly-defined MWBs will deliver the financial targets

Concepts, processes and systems implemented during the previous strategy period 2010-13 provide a strong foundation to win the new MWBs

23

MWB#1 will drive Cramo’s sales. And strengthen its position as the first choice for customers…

• Drive higher sales through true differentiation from competitors
• Further enhance Cramo brand and corporate culture
• Customer promises on delivery precision and fast problem-solving. Product and

solution deliveries acc. to Cramo Rental Concept provide the underlying foundation

Deliver Cramo Story

Deliver processes and systems to support the Cramo Story

• Strengthen corporate culture and

promote strong values

• Best-of-class committed and satisfied

personnel through training, incentives, and enabling personal development

• Ability to measure delivery precision

and four-hour fix promise

• Transportation management −
• ptimized delivery process at depots

Build foundation for differentiation − strengthen Cramo brand and corporate culture

• Continuous strengthening of Cramo

brand by delivering customer promises everyday

• “Win customers on instant emotion,

keep them on trust”

24

1

Work stream

Make Cramo People live the Cramo Story

Objectives / actions Financial impact

Sales Sales Direct c. Sales

• 15%
• 10%
• 5%

0% 5% 10% 15% 2007 2008 2009 2010 2011 2012 2013E 2014E 2015E % change from previous year in nominal terms The European Equipment Rental Market

…and enable Cramo to grow organically faster than the rebounding European rental market

Source: European Rental Association, ERA Convention, June 2014

Nominal rental market growth in Europe

Cramo countries

In early 2014, a delay in recovery has been experienced, but base case for 2015-16 remains

25

Nominal rental growth estimates for 2014

5,3 % 4,6 % 2,9 % 2,7 % 2,4 % 2,2 % 2,2 % 2,2 % 1,7 % 0,8 % 0,3 %

• 4,5 %
• 6%
• 4%
• 2%

0% 2% 4% 6% UK Germany Poland Norway Finland Sweden Denmark Netherlands Belgium Italy France Spain Nominal rental growth estimate for 2014

MWB#2 will enhance efficiency and improve Cramo’s profitability in all key operations throughout Group

• Improve profitability by promoting continuous efficiency improvement, entrepreneurial

mindset and best practice sharing throughout the organisation

• Drive operational excellence and continuous learning and improvement through

a harmonised Performance Management Model in all key operations

Depot operations

• Harmonised Performance Management on depot
• perations, districts and regions in all OpCos
• Common management practices
• Continuous learning and best practice sharing
• Promote entrepreneurial mindset in daily operations
• Enhanced employees’ profit awareness and their

ability to affect the result in operations

26

Drive Cramo Performance Management

2

Work stream Objectives / actions Financial impact

Still significant improvement potential although a lot has been done already!

The focus of implementing performance management has so far been on depot operations…

Sales Direct c. Indirect c. Depr.

Modular space processes Sales management

• Harmonised steering model, KPIs and

management systematics implemented

• Roll-out first in Nordic countries,

thereafter in whole Group

• Harmonised steering model, KPIs and

management systematics implemented

• Whole organisation to take part in sales,

synergies with depot operations

Purchasing

• Drive cost savings in all key purchases
• Drive performance management in

purchasing process

• Implement e-procurement
• Harmonised steering model, KPIs and

management systematics implemented

• Roll-out first in Nordic countries,

thereafter in whole Group

Repair and maintenance

27

...and now MWB#2 success will be spread throughout all Cramo’s key operations

Work stream Objectives / actions Financial impact

Sales Direct c. Indirect c. Depr. Direct c. Sales

MWB#3 will enable Cramo to win Central European market − Key to reaching targets and securing long-term potential

• Drive profitable growth by implementing Cramo Rental Concept
• Drive growth within modular space
• Capture long-term potential in Europe’s largest rental market

Implement business model change − Transition program Benchmark with Nordics, harvest benefits

• Complete transition to a multi-category,

customer-focused rental company

• Strengthen business with focus on

achieving Top-3 position in each district

• Establish growth enablers (systems,

processes etc.)

• Grow the business organically and with

targeted acquisitions

• Process development, benefit harvesting
• Cramo Performance Management

(MWB#2) and district development

• Drive growth in modular space business
• Depot of the year benchmarking

28

Win Central European Market

3

Work Stream Objectives / actions Financial impact

Sales Sales Direct c. Indirect c. Indirect c. Depr.

Also non- recurring costs

Fleet utilisation improvement

29

Steps to higher profitability (illustrative)

EBITA margin target to be achieved through strategy implementation and other measures

Group financial target: EBITA margin > 15%

Current level

EBITA-% MWB#1 MWB#2 MWB#3

Price

• ptimisation

Fleet and cost inflation Depends also on market conditions

#1, #2, #3

EBITA

#2, #3 #2

Sales Direct costs Indirect costs Depreciation

Success in MWBs will positively impact Cramo Group’s sales and different cost items Operating leverage multiplies the impact of growth on profitability

New MWBs together with operating leverage will enable Cramo to meet its financial targets

Line item MWB Illustration of operating leverage*

30

Sales Growth:

100 + 5 = 105 + 5%

Gross Margin:

65%

Indirect Costs:

• 40

Capital Costs:

• 14

EBITA Growth:

11  14 + 30% 65%

• 40
• 14

* The above example is illustrative, seeking to only highlight the potential impact of operating leverage. Of important note is that full leverage is achieved only if potential increase in sales can be generated with the existing fleet size and cost base. Of further note is that the above equation does not consider price increases

• 6x

#1, #2, #3 #1, #2, #3

Over-the-cycle EBITA margin target > 15%

Groundwork for enhanced profitability completed with MWBs in 2010-13 Enhanced flexibilities built in business model

Key message Illustration of cyclicality

EBITA-%

15 %

Target Level

Time

• Cramo’s profitability fluctuates

due to cyclicality of customer industries and operating leverage

• Cramo targets over-the-cycle

EBITA margin of >15%

• Higher margins in upturn,

lower in downturn

• Clearly > 15 % EBITA

margin in good cycle

• Enhanced flexibilities built in

business model, improved resilience to demand changes 31

Below 15% in downturn Above 15% in good cycle

5.9 % 5.7 % 5.1 % 5.3 % 5.1 % 4.5 % 4.2 % 3.8 % 3.6 % 3.6 % Q1/2012 Q2/2012 Q3/2012 Q4/2012 Q1/2013 Q2/2013 Q3/2013 Q4/2013 Q1/2014 Q2/2014 113 % 103 % 79 % 65 % 92 % 73 % 89 % 2009 2010 2011 2012 Q2/2013 2013 Q2/2014

• Optimised capital structure and

financial leverage

• Current level includes headroom to

finance further future growth

• Decreasing Q2 level compared to

2013

• Annual business cycle impacts the

quarterly gearing levels

• Continuously decreasing net cost of

financing since 2012

• Current R12 months net financing

cost 3.6 %

• Net debt to EBITDA the only

remaining financial covenant in refinanced long-term loan facilities

• Current level well below threshold
• Acquisition-friendly covenant

Optimised capital structure enables growth and attractive ROE through financial leverage

Gearing Net financing cost* Net debt to EBITDA

Target Level

32

3.6x 3.1x 2.3x 1.9x 2.4x 2.1x 2.5x 2009 2010 2011 2012 Q2/2013 2013 Q2/2014

* Net financing cost = Rolling 12-month net finance costs divided by 12-month average net debt

50 000 100 000 150 000 200 000 250 000 300 000 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 9/2012 12/2012 3/2013 6/2013 9/2013 12/2013 3/2014 6/2014

Target: Attractive returns to shareholders, increasing share liquidity

Share price and trading volume since 9/2012

• Cramo’s share price has

increased 65% during the past two years

• Average trading volumes have

increased significantly during last 12 months

• Free float currently about 84%
• Dividend per share € 0.60 for

the financial year 2013

Key message

Price (€) Volume*

*100-day rolling average of daily total trading volumes, Hartwall divestment capped

• Hartwall family decreases

its stake in Cramo by approximately 10.9%

• Ex-date for

2013 dividend

33

• Increased liquidity

following Hartwall divestment

CRAMO PLC

Capital Markets Day CRAMO STORY AND DYNAMIC PRICING

Erik Bengtsson, EVP, Scandinavia Per Lundquist, SVP, Operations 9 September 2014

FOR A GREAT DAY AT WORK

FOR A GREAT DAY AT WORK

Why a Cramo story?

Eat or be eaten

We need to differentiate us from the competition.

35

FOR A GREAT DAY AT WORK

Why a Cramo story?

Our customers listen increasingly to their hearts

We need a strong brand image. A strong brand image enables us to sell more at the same price, or to take out a higher price than the competition.

36

FOR A GREAT DAY AT WORK

Why a Cramo story?

A brand entails expectations that we must live up to

So we win the customer on his instant emotion (brand perception) and keep him on trust (meeting the expectations).

37

FOR A GREAT DAY AT WORK

Why a Cramo story?

The Cramo story is not about marketing

It’s about corporate culture

It’s about how we act – towards our customers and among ourselves. And it will help us fly.

38

FOR A GREAT DAY AT WORK

What do we want to achieve?

CRAMO IS THE ROLE MODEL FOR ALL RENTAL

39

FOR A GREAT DAY AT WORK

Our promise to our customers

A GREAT DAY AT WORK

40

FOR A GREAT DAY AT WORK

We are always responsive

If the customer is not happy with our service, he or she can tell our Ombudsman and get a bonus for helping us improve.

How do we make it happen? APPRECIATE CRITICISM Be not afraid of criticism. It helps us uncover blind spots and find solutions to whatever is going wrong.

41

FOR A GREAT DAY AT WORK

We are always there for you

If the customer cannot use our equipment as planned due to late or incomplete delivery he

• r she will be compensated.

How do we make it happen? SURPRISINGLY GOOD COMPENSATION Sometimes things go wrong. That we can’t change. Don’t imagine you’re doing something special for a customer by making things how they should have been in the first place. You need to do something extra.

42

FOR A GREAT DAY AT WORK

We are always on time

If there’s a malfunction in any equipment delivered by us, we will fix or substitute it faster than normally expected – or compensate.

How do we make it happen? PROBLEM-SOLVING BUILDS TRUST Not being able to rely on our equipment undermines the whole idea of what we do. But you can turn a negative into a positive by solving the problem surprisingly fast.

43

FOR A GREAT DAY AT WORK

CRAMO PLC

Capital Markets Day DYNAMIC PRICING

Per Lundquist, SVP, Operations 9 September 2014

FOR A GREAT DAY AT WORK

Pricing for the future

Right PriceTM Rätt PrisTM Riktig PrisTM Ret PrisTM Richtiger PreisTM Reilu HintaTM

45

FOR A GREAT DAY AT WORK

Why RP?

Yield management: “the process of making frequent adjustments in the price of a product in response to certain market factors, such as demand or competition.”

46

FOR A GREAT DAY AT WORK

What RP?

47

FOR A GREAT DAY AT WORK

Why Cramo needed RP?

150K+ customers 350+ depots

• ver 200000 products

Operations in over 10 countries Different price lists in each country Gross price lists with discounts used in many cases Local project prices used in too many projects Rental periods were getting shorter and shorter Pricing decisions based on gut feeling rather than science

48

FOR A GREAT DAY AT WORK

What to achieve?

”Right price to right Customer, optimised pricing”- Frequent adjustments in price or a product based on the markets and each customer’s behaviour Pricing control Increase confidence in prices and pricing structure by using consistent methodology Rent by ”Price” versus ”Discount” Longer rental periods Increase sales and market share

49

FOR A GREAT DAY AT WORK

Pricing project in Cramo

First signs

• f

declining margin trend First vendor contact Project kick-off in Stockholm Pilot launched in Sweden (Region South) All Swedish depots integrated Kick-off for the Nordic- project All Nordic countries up and running Go-live in Central Europe

2010 2011 06/2012 02/2013 04/2014 11/2013 2015

50

CRAMO PLC

Capital Markets Day PROFITABLE GROWTH IN FINLAND AND EASTERN EUROPE

Tatu Hauhio, EVP 9 September 2014

FOR A GREAT DAY AT WORK

52

Agenda

Profitable growth in Finland and Eastern Europe Overview of business segments Finland and Eastern Europe

1

Recent achievements

2

Key market trends

3

Strategic priorities and targets

4

Summary

5

53

Cramo Finland and Eastern Europe overview

Good relative contribution to Group’s performance

Share of Group sales in 2013

Business segment Eastern Europe Fortrent (JV with Ramirent, incl. in EE segment) Business segment Finland

15 % 8 %

Share of Group EBITA in 2013

22 % 9 %

54

Rolling 12-month sales and EBITA-% Number of employees and depots Sales by customer segment in 2013 Sales by product group in 2013

33 % 5 % 22 % 8 % 21 % 11 %

Tools Construction eq. Access equipment Sitehuts Modular space Other

49 % 16 % 24 % 3 %8 %

Construction ind. Other industry Public sector Households Other

102,8 11,7 % 12,5 % 14,0 % 12,5 % 13,0 % 13,5 % 14,0 % 15,9 % 16,3 % 16,6 % 17,4 % 18,6 % 19,1 % 19,2 % 18,8 % 18,8 % 19,4 % 20,4 %

0% 5% 10% 15% 20% 25% 20 40 60 80 100 120 140 Q1/2010 Q2/2010 Q3/2010 Q4/2010 Q1/2011 Q2/2011 Q3/2011 Q4/2011 Q1/2012 Q2/2012 Q3/2012 Q4/2012 Q1/2013 Q2/2013 Q3/2013 Q4/2013 Q1/2014 Q2/2014

Quarterly rolling 12-month EBITA margin Quarterly sales (Rolling 12 months, EUR m) Sales (R12m) EBITA-% (R12m)

55 57 58 58 55 55 55 55 55 55 55 55 53 53 53 53 53 54 459 100 200 300 400 500 600 700 800 10 20 30 40 50 60 70 Q1/2010 Q2/2010 Q3/2010 Q4/2010 Q1/2011 Q2/2011 Q3/2011 Q4/2011 Q1/2012 Q2/2012 Q3/2012 Q4/2012 Q1/2013 Q2/2013 Q3/2013 Q4/2013 Q1/2014 Q2/2014 Full-time equivalent (end of period)

Number of depots Depots (LHS) FTE (RHS)

Improving profitability in Finland

55

Positive development in Eastern Europe

Rolling 12-month sales and EBITA-% Number of employees and depots Sales by customer segment in 2013 Sales by product group in 2013

37 % 12 % 36 % 12 %2 % 2 %

Tools Construction eq. Access equipment Sitehuts Modular space Other

80 % 8 % 3 % 4 % 6 %

Construction ind. Other industry Public sector Households Other

49,6

• 41,0 %
• 39,7 %
• 34,3 %
• 23,0 %
• 16,5 %
• 10,9 %
• 3,6 %

2,6 % 4,6 % 7,7 % 9,2 % 9,6 % 10,8 % 11,2 % 13,3 % 15,5 % 13,9 % 15,3 %

• 45%
• 35%
• 25%
• 15%
• 5%

5% 15% 25% 10 20 30 40 50 60 70 80 Q1/2010 Q2/2010 Q3/2010 Q4/2010 Q1/2011 Q2/2011 Q3/2011 Q4/2011 Q1/2012 Q2/2012 Q3/2012 Q4/2012 Q1/2013 Q2/2013 Q3/2013 Q4/2013 Q1/2014 Q2/2014

Quarterly rolling 12-month EBITA margin Quarterly sales (Rolling 12 months, EUR m) Sales (R12m) EBITA-% (R12m)

66 65 65 65 66 72 73 76 77 77 76 71 63 63 64 63 63 63 457 100 200 300 400 500 600 700 10 20 30 40 50 60 70 80 90 Q1/2010 Q2/2010 Q3/2010 Q4/2010 Q1/2011 Q2/2011 Q3/2011 Q4/2011 Q1/2012 Q2/2012 Q3/2012 Q4/2012 Q1/2013 Q2/2013 Q3/2013 Q4/2013 Q1/2014 Q2/2014 Full-time equivalent (end of period)

Number of depots Depots (LHS) FTE (RHS)

56

Healthy competitive landscape

Market size1 Market position estimate2 M€ 430

1 Finland and Poland: ERA European Equipment Rental Industry 2013 Report, autumn 2013. Others based on Cramo management estimates 2 Cramo management estimates

Main competitors

• Strong #2 in equipment

rental

• #1 in modular space

M€ 110 M€ 350 M€ 65 FINLAND THE BALTIC COUNTRIES POLAND CZECH REP. & SLOVAKIA Market characteristics

• Two strong players

with a number of local and specialist competitors

• Modular space

dominated by a few strong players

• A few ”in-house”

competitors

• #1 in the Baltics
• Two strong players

with a number of local and specialist competitors

• Markets in early phase

in modular space product area

• #2 in equipment rental
• Clear market leader
• Mainly smaller national

and local players with a few Western European competitors

• Markets in early phase

in modular space product area

• #1 in access

equipment

• #3 in overall rental
• Clear market leaders in

both Czech and Slovakia

• Otherwise mainly

smaller Western European competitors

• Markets in early phase

in modular space product area

57

Note: Figures before 1 March 2013 are pro forma

Fortrent: JV in Russia and Ukraine with Ramirent

Net result (€m) Key facts Sales and EBITA (€m)

• Began operation on 1 March 2013
• Leading equipment rental company in

Russia and Ukraine with 22 rental

• utlets and 380 employees
• Finnish limited liability company owned

and controlled 50/50 by Cramo and Ramirent

• The share of the profit of the joint

venture is booked in the consolidated Group profit and loss statement above EBITDA using the equity method of accounting

• In 2014, sales have decreased due to the weaker market situation in

Russia and Ukraine caused by the Ukrainian crisis

• Weakening of the Russian rouble and the Ukrainian hryvnia against the

euro have also had a negative impact on sales

• In H1/2014, Fortrent focused on adjusting its cost base to the weaker

market situation and reduced its investment level for 2014

• Efforts to improve profitability will continue in H2/2014, but the

Ukrainian crisis continues to pose challenges in this respect

0,5 2,0 3,0 0,0 0,0 2,1 2,6

• 0,2

0,0 12,1 14,7 16,2 12,6 11,7 13,4 13,8 9,3 9,6 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Sales EBITA

• 0,2
• 0,8

0,5 1,1

• 0,4
• 0,2
• 0,9

0,1 0,5

• 0,7
• 1,6

1,0 2,1

• 0,8
• 0,3

Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Net result Cramo's share

58

Agenda

Profitable growth in Finland and Eastern Europe Overview of business segments Finland and Eastern Europe

1

Recent achievements

2

Key market trends

3

Strategic priorities and targets

4

Summary

5

59

Recent achievements in Cramo Finland

A number of achievements that pave way for profitable growth

• Target to realise growth

potential in construction equipment rental

• Potential in earth moving

rental business driven by low rental penetration rate

• Successful integration to

Cramo’s operations in Finland completed

Acquisition of OptiRent in Finland Implementation of Cramo performance management model

1 2

• Performance management

model successfully implemented in depot

• perations
• Implementation currently on-

going in repair & maintenance

• perations as well as in sales

management

• Finland has set benchmark

for other Cramo countries

3

Right Price™

• a new way of pricing
• Dynamic pricing implemented

in Q2/2014

• Increases pricing control
• Increases confidence in prices

and pricing structure through consistent methodology

• Target to extend rental

periods, increase sales and gain market share

60

Recent achievements in Cramo Eastern Europe

Improvements in all Eastern European countries

• Good development in modular

space in the Baltics, yet the market is still immature

• Increasing awareness and

acceptance of MS solutions

• Platform for growth in place,

aim to further develop the

• rganisation and business

processes

Modular space in the Baltic countries Implementation of Cramo performance management model in Poland

1 2

• Significant contribution to

profitability improvement and execution of sales strategy

• Efficient communication

platform across organisation

• Improved business awareness

among depot staff

• Increased discipline in

execution of oper. processes and control over pricing

3

Optimisation of business structure in CZ and SK

• Since 2008, construction in

CZ&SK has faced severe development, losing roughly quarter of its value in 5 years

• Hence, Cramo has adjusted

its operations accordingly (depot network, fleet structure, personnel)

• As a result, performance has

been constantly improving

61

Agenda

Profitable growth in Finland and Eastern Europe Overview of business segments Finland and Eastern Europe

1

Recent achievements

2

Key market trends

3

Strategic priorities and targets

4

Summary

5

• 6%
• 4%
• 2%

0% 2% 4% 6% 8% 10% 12% 2011 2012 2013 2014F 2015F 2016O % change from previous year in real terms Construction output growth Rental growth

62

Source: Construction growth estimates from Euroconstruct, June 2014 and rental estimates from VTT, May 2014

Rental growth estimate for 2016 not available

• Finnish construction output

estimated to grow moderately by ~1.2% per annum over 2014-16

• Growth projected to be

driven by non-residential construction

• However, rental growth in

Finland expected to clearly surpass construction growth going forward

• That is, construction industry

penetration rate expected to increase

• Rental is an industrial

service business with a number of additional growth drivers to construction

Rental growth to surpass construction in Finland

Key message

85 90 95 100 105 110 2013 2014F 2015F 2016O Construciton volume index (2013=100) Total construction Residential Non-residential Civil engineering

Construction growth estimates Construction vs. Rental growth

63

Source: Euroconstruct, June 2014

• Total construction output in

the Baltic countries estimated to decline slightly in 2014-15, and turn to growth in 2016

• However, good growth

predicted for Lithuania

• Construction decline in EE

and LV attributable to civil engineering, where cycle of EU structural funds plays an important role

• Polish construction growth

estimated to be one of the strongest in whole Europe

• High sub-sector specific

differences in the Czech and Slovakia

High regional and sectorial differences in EE

Key message Construction growth in the Baltics

• Constr. growth in PL, CZ and SK

90 95 100 105 110 115 120 2013 2014F 2015F 2016O Construciton volume index (2013=100) Poland Czech Rep. Slovakia 90 95 100 105 110 115 120 2013 2014F 2015F 2016O Construciton volume index (2013=100) Estonia Latvia Lithuania Total Baltics

• 6%
• 4%
• 2%

0% 2% 4% 6% 8% 10% Resid. Non-res. Civil eng. Resid. Non-res. Civil eng. Resid. Non-res. Civil eng. Estonia Latvia Lithuania Construciton growth (CAGR 2013-16)

• 6%
• 4%
• 2%

0% 2% 4% 6% 8% 10% Resid. Non-res. Civil eng. Resid. Non-res. Civil eng. Resid. Non-res. Civil eng. Poland Czech Slovakia Construciton growth (CAGR 2013-16)

64

Agenda

Profitable growth in Finland and Eastern Europe Overview of business segments Finland and Eastern Europe

1

Recent achievements

2

Key market trends

3

Strategic priorities and targets

4

Summary

5

65

Strategic priorities and targets for 2014-16 (Finland)

Deliver Cramo Story Drive Cramo Performance Management

1 2

Other initiatives

#

• Build stronger brand
• Strengthen corporate culture and

promote strong values

• Improve customer service
• Measure and enhance delivery

precision and service time

Maintain cost- competitiveness

• Reap benefits from performance

management on depot level

• Continue implementation in repair

& maintenance and sales management

• Introduce performance

management in modular space

• Consider bolt-on acquisitions and
• utsourcing cases to promote

profitable growth

• Continue and reap benefits from

Right Price™

• Continue investing in and

developing modular space business

Improve capital efficiency Improve business agility Increase market share Differentiate from competition Increase

• perational

efficiency Increase prices Longer rental periods Optimise prices Organic growth in modular space Increase sales Increase market share

66

Strategic priorities and targets (Eastern Europe)

Deliver Cramo Story Drive Cramo Performance Management

1 2

Other initiatives

#

• Build stronger brand
• Strengthen corporate culture and

promote strong values

• Improve customer service
• Measure and enhance delivery

precision and service time

• Reap benefits from performance

management on depot level

• Introduce performance

management in repair & maintenance and sales management

• Implement common business

intelligence tool in the Baltics

• Develop modular space in the

Baltic countries

• Implement harmonised rental

platform in Poland

Maintain cost- competitiveness Improve capital efficiency Increase

• perational

efficiency Organic growth in modular space Increase market share Differentiate from competition Increase

• perational

efficiency Increase prices Improve business agility Increase sales

67

Agenda

Profitable growth in Finland and Eastern Europe Overview of business segments Finland and Eastern Europe

1

Recent achievements

2

Key market trends

3

Strategic priorities and targets

4

Summary

5

68

Good financial and operational development in both Finland and Eastern Europe, thanks to successful implementation of previous strategy Improvements in many areas provide a good foundation for future performance Overall construction and rental outlook modest but high regional and sectorial differences New focused strategy will take Cramo to the targeted level Bolt-on acquisitions and outsourcing cases considered to drive profitable growth

Key messages: Finland and Eastern Europe

CRAMO PLC

Capital Markets Day PROFITABLE GROWTH IN SWEDEN, NORWAY AND DENMARK

Erik Bengtsson, EVP 9 September 2014

FOR A GREAT DAY AT WORK

70

Agenda

Profitable growth in Sweden, Norway and Denmark Overview of business segments Sweden, Norway and Denmark

1

Recent achievements

2

Key market trends

3

Strategic priorities and targets

4

Summary

5

71

Cramo Scandinavia overview

Important region generates two-thirds of Group’s sales and EBITA

Share of Group sales in 2013

Business segment Norway Business segment Denmark Business segment Sweden

Share of Group EBITA in 2013

48 % 14 % 4 % 63 % 8 %

72

Rolling 12-month sales and EBITA-% Number of employees and depots Sales by customer segment in 2013 Sales by product group in 2013

Stable profit generation in Sweden

38 % 8 % 23 % 18 % 14 %

Tools Construction eq. Access equipment Sitehuts Modular space Other

52 % 29 % 14 % 3 % 2 %

Construction ind. Other industry Public sector Households Other

116 116 119 119 119 124 125 128 126 126 128 124 121 120 120 120 118 118 812 100 200 300 400 500 600 700 800 900 20 40 60 80 100 120 140 Q1/2010 Q2/2010 Q3/2010 Q4/2010 Q1/2011 Q2/2011 Q3/2011 Q4/2011 Q1/2012 Q2/2012 Q3/2012 Q4/2012 Q1/2013 Q2/2013 Q3/2013 Q4/2013 Q1/2014 Q2/2014 Full-time equivalent (end of period)

Number of depots Depots (LHS) FTE (RHS) 312,0 15,7 % 14,7 % 14,7 % 16,4 % 16,8 % 17,8 % 18,6 % 18,8 % 19,3 % 18,5 % 18,3 % 17,9 % 17,2 % 17,3 % 17,9 % 17,5 % 17,4 % 17,3 %

0% 5% 10% 15% 20% 25% 50 100 150 200 250 300 350 Q1/2010 Q2/2010 Q3/2010 Q4/2010 Q1/2011 Q2/2011 Q3/2011 Q4/2011 Q1/2012 Q2/2012 Q3/2012 Q4/2012 Q1/2013 Q2/2013 Q3/2013 Q4/2013 Q1/2014 Q2/2014

Quarterly rolling 12-month EBITA margin Quarterly sales (Rolling 12 months, EUR m) Sales (R12m) EBITA-% (R12m)

73

Uncertainty in market conditions in Norway

Rolling 12-month sales and EBITA-% Number of employees and depots Sales by customer segment in 2013 Sales by product group in 2013

85,2 4,2 % 2,0 % 1,2 % 0,4 % 1,1 % 0,0 % 0,9 % 1,1 % 1,7 % 3,9 % 5,0 % 6,3 % 6,1 % 6,8 % 6,9 % 7,3 % 8,2 % 6,7 %

• 2%

0% 2% 4% 6% 8% 10% 12% 10 20 30 40 50 60 70 80 90 100 Q1/2010 Q2/2010 Q3/2010 Q4/2010 Q1/2011 Q2/2011 Q3/2011 Q4/2011 Q1/2012 Q2/2012 Q3/2012 Q4/2012 Q1/2013 Q2/2013 Q3/2013 Q4/2013 Q1/2014 Q2/2014

Quarterly rolling 12-month EBITA margin Quarterly sales (Rolling 12 months, EUR m) Sales (R12m) EBITA-% (R12m)

27 28 29 29 29 34 34 34 34 31 31 31 32 32 32 31 30 29 262 50 100 150 200 250 300 5 10 15 20 25 30 35 40 Q1/2010 Q2/2010 Q3/2010 Q4/2010 Q1/2011 Q2/2011 Q3/2011 Q4/2011 Q1/2012 Q2/2012 Q3/2012 Q4/2012 Q1/2013 Q2/2013 Q3/2013 Q4/2013 Q1/2014 Q2/2014 Full-time equivalent (end of period)

Number of depots Depots (LHS) FTE (RHS)

27 % 12 % 29 % 20 % 9 %4 %

Tools Construction eq. Access equipment Sitehuts Modular space Other

65 % 24 % 8 %3 %

Construction ind. Other industry Public sector Households Other

74

Signs of upturn in Denmark

Rolling 12-month sales and EBITA-% Number of employees and depots Sales by customer segment in 2013 Sales by product group in 2013

28,6

• 30,8 %
• 33,2 %
• 32,2 %
• 18,1 %
• 12,5 %
• 10,0 %
• 6,2 %
• 6,1 %
• 5,3 %
• 5,1 %
• 3,9 %
• 13,3 %
• 10,3 %
• 8,8 %
• 12,1 %

0,1 %

• 1,9 %
• 4,1 %
• 35%
• 30%
• 25%
• 20%
• 15%
• 10%
• 5%

0% 5% 5 10 15 20 25 30 35 40 45 Q1/2010 Q2/2010 Q3/2010 Q4/2010 Q1/2011 Q2/2011 Q3/2011 Q4/2011 Q1/2012 Q2/2012 Q3/2012 Q4/2012 Q1/2013 Q2/2013 Q3/2013 Q4/2013 Q1/2014 Q2/2014

Quarterly rolling 12-month EBITA margin Quarterly sales (Rolling 12 months, EUR m) Sales (R12m) EBITA-% (R12m)

17 17 17 17 17 18 19 20 18 18 18 7 7 7 7 7 7 7 120 20 40 60 80 100 120 140 5 10 15 20 25 Q1/2010 Q2/2010 Q3/2010 Q4/2010 Q1/2011 Q2/2011 Q3/2011 Q4/2011 Q1/2012 Q2/2012 Q3/2012 Q4/2012 Q1/2013 Q2/2013 Q3/2013 Q4/2013 Q1/2014 Q2/2014 Full-time equivalent (end of period)

Number of depots Depots (LHS) FTE (RHS)

14 % 21 % 14 % 19 % 29 % 3 %

Tools Construction eq. Access equipment Sitehuts Modular space Other

45 % 7 % 37 % 5 %6 %

Construction ind. Other industry Public sector Households Other

75

Differences in competitive landscapes

Market size1 Market position estimate2 SEK 13.3b

1 Source: ERA European Equipment Rental Industry 2013 Report, autumn 2013 2 Cramo management estimates

Main competitors

• Strong #1 both in

equipment rental and modular space

SWEDEN NORWAY DENMARK Market characteristics

• Two strong players with a

number of local and specialist competitors

• Modular space dominated

by a few strong players

• A few ”in-house”

competitors

• #2 in overall rental
• #1 in access equipment
• Three strong players with a

number of local competitors

• A few players in modular

space product area

• #3 in equipment rental
• #1 in modular space
• Fragmented markets

waiting for consolidation

• A few small players in

modular space product area

NOK 7.2b DKK 3.1b

“In-house” competitors Modular space competitors

76

Agenda

Profitable growth in Sweden, Norway and Denmark Overview of business segments Sweden, Norway and Denmark

1

Recent achievements

2

Key market trends

3

Strategic priorities and targets

4

Summary

5

77

Recent achievements in Cramo Sweden

Improvements in many areas

• Market prices in every

segment

• No more traditional price lists
• Increases confidence in prices

and pricing structure through consistent methodology

• Target to extend rental

periods, increase sales and gain market share

Right Price™

• a new way of pricing

Speed Rental

• we go paperless
• Faster customer handling
• Delivery notice to customers
• Paperless documentation
• Continuous innovation on new

ways to serve customers

Success in large projects

• Separate organisation dealing

with large projects

• Fortum power plant in

Värtahamnen (Stockholm)

• Power plant in Örtofta

(southern Sweden)

• Malmfälten (LKAB, Northland)

3 1 2

78

Recent achievements in Cramo Norway

Operational efficiency and effectiveness in focus

• Market prices in every

segment

• No more traditional price lists
• Increases confidence in prices

and pricing structure through consistent methodology

• Target to extend rental

periods, increase sales and gain market share

Right Price™

• a new way of pricing

Improved project knowledge and capabilities

• IKEA, Fornebuporten
• Capacity for taking overall

project responsibility for machines, electricity, logistics etc.

• Increased project execution

knowledge and resourcing

Hub structure in place

• Large, efficient hub in

Lilleström for heavy equipment

• Modern modular space hub in

Loesmoen

• Transportation solutions in

place

• Efficient service organisation
• Good foundation for
• perational excellence

1 2 3

79

Recent achievements in Cramo Denmark

Strong actions in a challenging market

• Market prices in every

segment

• No more traditional price lists
• Increased # of new customers
• Increase in pricing control
• Applied to all customers

except the two largest

Right Price™

• a new way of pricing
• Faster customer handling
• Delivery notice to customers
• Paperless documentation
• Continuous innovation on new

ways to serve customers

Growth and success in Modular space business

• Extended resourcing,
• rganisation fully in place
• Success and references in

delivering also very large projects (e.g. Copenhagen Metro)

• Good order intake, a number
• f new large projects (e.g.

Novo Nordisk)

• Positive outlook

3 1 2

Speed Rental

• we go paperless

80

Agenda

Profitable growth in Sweden, Norway and Denmark Overview of business segments Sweden, Norway and Denmark

1

Recent achievements

2

Key market trends

3

Strategic priorities and targets

4

Summary

5

• 30%
• 20%
• 10%

0% 10% 20% 30% 40% 50% 10 20 30 40 50 60 70 80 90

Q1/2008 Q2/2008 Q3/2008 Q4/2008 Q1/2009 Q2/2009 Q3/2009 Q4/2009 Q1/2010 Q2/2010 Q3/2010 Q4/2010 Q1/2011 Q2/2011 Q3/2011 Q4/2011 Q1/2012 Q2/2012 Q3/2012 Q4/2012 Q1/2013 Q2/2013 Q3/2013 Q4/2013 Q1/2014 Q2/2014

Change in volume, % Swedish construction order backlog (SEK billion) Peab NCC Skanska R12M sales growth of Cramo Equipment Rental Sweden (in local currency) Year-on-year change in Swedish construction order backlog

81

Source: Construction growth estimates from Euroconstruct, June 2014 and Sveriges Byggindustrier, June 2014, order backlog data from interim reports of respective companies

Lag of approximately 2-3 quarters

• Estimates for Swedish

construction growth in 2014- 15 are strong – driven by residential sector

• Brighter outlook can also be

seen in the development of construction order backlogs

• f large Swedish

construction companies

• Historically, sales trend of

Cramo Sweden equipment rental has followed development in the order backlog with a delay of approximately 2-3 quarters

• Cramo is likely to benefit

from the improved construction environment with a delay

Positive market outlook in Sweden

Key message Swedish construction order backlog of selected companies

82

Source: Euroconstruct, June 2014

• Estimate for construction
• utput growth in Norway in

2014 downgraded, mainly due to drop in residential construction

• However, outlook suggests

growth to resume in 2015- 16, driven by strong civil engineering sector

• Denmark expected to be

among the fastest growing construction markets in Europe with an average growth of ~3% a year in 2014-16

• Gains in Danish construction

volume projected to be seen in all of the three sub- sectors

Also Norway and Denmark expected to recover

Key message Construction growth in Norway Construction growth in Denmark

90 95 100 105 110 115 120 125 2013 2014F 2015F 2016O Construciton volume index (2013=100) Total construction Residential Non-residential Civil engineering 90 95 100 105 110 115 120 125 2013 2014F 2015F 2016O Construciton volume index (2013=100) Total construction Residential Non-residential Civil engineering

83

Agenda

Profitable growth in Sweden, Norway and Denmark Overview of business segments Sweden, Norway and Denmark

1

Recent achievements

2

Key market trends

3

Strategic priorities and targets

4

Summary

5

84

Strategic priorities and targets 2014-16 (Scandinavia)

Deliver Cramo Story Drive Cramo Performance Management

1 2

Other initiatives

#

• Build stronger brand
• Strengthen corporate culture and

promote strong values

• Measure delivery precision and

service time

• Build foundation for differentiation

Maintain cost- competitiveness

• Implement weekly meetings in all

depots

• Promote entrepreneurial mindset

in daily operations

• Drive further operational

efficiencies and cost optimisations

• Optimise depot footprint
• Continue and reap benefits from

Right Price™

• Continue and reap benefits from

Cramo Carousel – Best-in-town logistics optimisation concept

Improve capital efficiency Increase market share Increase prices Optimise fixed cost base Longer rental periods Optimise prices Improve

• perational

efficiency Reduce idle fleet Promote sales growth

85

Agenda

Profitable growth in Sweden, Norway and Denmark Overview of business segments Sweden, Norway and Denmark

1

Recent achievements

2

Key market trends

3

Strategic priorities and targets

4

Summary

5

86

We have increased our market share in Sweden and Denmark We have achieved improvements in many areas We anticipate a stronger market in 2015 We have successfully implemented two market- changing projects We are looking at bolt-on acquisitions and outsourcing cases to drive profitable growth Driving Cramo Performance Management initiatives will enhance our efficiency Cramo Story will take us to the next level

Key messages: Sweden, Norway and Denmark

CRAMO PLC

Capital Markets Day WIN CENTRAL EUROPEAN MARKET

Dirk Schlitzkus, EVP 9 September 2014

FOR A GREAT DAY AT WORK

88

Agenda

Profitable growth in Central Europe Overview of business segment Central Europe

1

Recent achievements

2

Key market trends

3

Strategic priorities and targets

4

Summary

5

89

Cramo Central Europe overview

Increasing share of Group’s sales, profit generation in focus

Share of Group sales in 2013

Business segment Central Europe

Share of Group EBITA in 2013

11 %

• 1 %

90

Rolling 12-month sales and EBITA-% Number of employees and depots Sales by customer segment in 2013 Sales by product group in 2013

Transition program evident in figures

8 % 82 % 10 %

Tools Construction eq. Access equipment Sitehuts Modular space Other

46 % 26 % 15 % 4 % 9 %

Construction ind. Other industry Public sector Households Other

95 95 95 96 96 90 90 88 86 84 84 83 79 77 395 50 100 150 200 250 300 350 400 450 20 40 60 80 100 120 Q1/2010 Q2/2010 Q3/2010 Q4/2010 Q1/2011 Q2/2011 Q3/2011 Q4/2011 Q1/2012 Q2/2012 Q3/2012 Q4/2012 Q1/2013 Q2/2013 Q3/2013 Q4/2013 Q1/2014 Q2/2014 Full-time equivalent (end of period)

Number of depots Depots (LHS) FTE (RHS) 76,5 0,8 %

• 0,2 %
• 1,1 %
• 0,4 %
• 0,9 %
• 0,2 %
• 0,6 %
• 1,4 %
• 1,3 %
• 4,7 %
• 6%
• 5%
• 4%
• 3%
• 2%
• 1%

0% 1% 2% 10 20 30 40 50 60 70 80 90 Q1/2012 Q2/2012 Q3/2012 Q4/2012 Q1/2013 Q2/2013 Q3/2013 Q4/2013 Q1/2014 Q2/2014

Quarterly rolling 12-month EBITA margin Quarterly sales (Rolling 12 months, EUR m) Sales (R12m) EBITA-% (R12m) Note: Theisen acquisition was completed in February 2011. Hence, rolling 12-month figures are available as of Q1/2012

91

Establish enablers for delivering the Cramo concept Grow the business to maintain competitive market position Strengthen existing business Roll-out Cramo concept district by district 1 2 3 4

Transition program overview

Priority work streams Key actions

• New organisation model
• Roll-out Cramo rental concept:

– Best-in-town concept – Multi-category supplier, with focus on access, tools and modular space – Reduction of unprofitable products according to schedule

• Implement Cramo’s harmonised systems and processes

– Cramo business platform, ERP and CRM implementation

• Introduce new sales organisation
• Introduce new service organisation
• Rebrand Theisen
• Controlled investments in access equipment and tools

– Based on standard roll-out plan, tailored roll-out for each district

• During past 12 months, new hubs established in selected best-in-town areas,

while simultaneously closing smaller depots

• Build up modular space business

– Acquisition, organic growth, resourcing

• Pursue M&A where aligned with multi-category rental model

92

Agenda

Profitable growth in Central Europe Overview of business segment Central Europe

1

Recent achievements

2

Key market trends

3

Strategic priorities and targets

4

Summary

5

93

Strategic and operational development in 2011-

2011 2012 H2/2013-

• Legal restructuring / new
• rganisation model in

place

• Closure of non-profitable

depots and non-profitable product segments

• Closure of Switzerland
• perations
• Modification of operations

according to Cramo Rental Concept

• Company culture project
• Implementation of sales

representative structure

• Implementation of service

structure in every district

• Roll-out of the multi-category

rental model – 7 access hubs – 4 tools hubs

• Closure of unprofitable

depots Integration phase Modification of operations and organisation according to Cramo Rental Concept Execution of transition plan

• Cramo’s acquisition of

Theisen Group in January 2011

• Main focus on integration
• f Theisen Group into

Cramo Group

94

Recent achievements in Cramo Central Europe

Building foundation for profitable growth through transition program

• One of the most significant

modular space rental companies particularly in the Rhein-Main area

• Excellent stepping stone for

establishing and further growing MS business in Germany

• Integration proceeding well
• Target to further grow MS

business and reduce seasonal fluctuations in Germany

Acquisition of C/S RaumCenter in Germany Large TWL Ludwigshafen modular rental project

1 2

• A four-year contract with

German energy company TWL

• TWL rents modular space for its

headquarter operations

• Includes four individual buildings,

total project covers 2.500m2

• Major breakthrough for Cramo’s

modular space operations in Central Europe

3

Progress in the transition program

• Status of Cramo Rental Concept

roll-out: 7 access hubs and 4 tools hubs established

• Implementation of common ERP

system and processes in H1/14

• CRM system in place in H2/14
• Implementation of common

business intelligence system enabling improved business steering together with Cramo Performance Management

95

Agenda

Profitable growth in Central Europe Overview of business segment Central Europe

1

Recent achievements

2

Key market trends

3

Strategic priorities and targets

4

Summary

5

96

Large but competitive rental market

Market size1 Market position estimate2 EUR 3.5b

1 Source: Germany based on ERA European Equipment Rental Industry 2013 Report, autumn 2013 and Austria on management estimates 2 Cramo management estimates

Main competitors

• #3 in equipment rental
• Modular space: one of the leading

companies in the Rhine-Main area

GERMANY AUSTRIA Market characteristics

• Large fragmented market under

consolidation, four stronger players

• Rich competitive landscape:

– Many types of players – Long tail of small locals – Strong OEM presence

• Fragmented modular space market with

small and medium-sized companies

• #2 in overall rental
• Fragmented, quote-driven market
• Slowly growing, competitive market
• Rich competitive landscape:

– Many types of players – Long tail of small locals – Strong OEM presence

EUR 0.3b

97

Source: Euroconstruct, June 2014

• German construction

estimated to grow steadily by stable ~2% a year in 2014-16

• Similar growth trend

projected across the construction sub-sectors

• Stable, albeit modest growth

expected also for Austria

Stable construction growth in sight

Key message Construction growth in Germany Construction growth in Austria

97 100 103 106 109 2013 2014F 2015F 2016O Construciton volume index (2013=100) Total construction Residential Non-residential Civil engineering 97 100 103 106 109 2013 2014F 2015F 2016O Construciton volume index (2013=100) Total construction Residential Non-residential Civil engineering

0,50 % 0,70 % 0,85 % 0,95 % 1,05 % 1,15 % 1,35 % 1,40 % 1,45 % 1,60 % 1,70 % 2,05 % 2,50 % 2,60 % 3,35 % 0,0 % 0,5 % 1,0 % 1,5 % 2,0 % 2,5 % 3,0 % 3,5 % 4,0 % Poland Remaining EU27 + EFTA Italy Belgium Spain Netherlands Germany Total Europe Finland France Denmark Norway USA United Kingdom Sweden Construction industry penetration rate, 2012

98

Source: ERA European Equipment Rental Industry 2013 Report, autumn 2013

• Rental penetration rate in

Germany still lower than in Cramo’s main markets and in Europe on average

• Outsourcing gradually

gaining ground. In March 2014, Hochtief sold majority

• f its Streif Baulogistik rental

business to Zeppelin Group

• Nordic-style outsourcing

deals could be one of the drivers of the business model in Germany in the future

Rental penetration still on a low level in Germany

Key message Construction industry penetration rate comparison

99

Agenda

Profitable growth in Central Europe Overview of business segment Central Europe

1

Recent achievements

2

Key market trends

3

Strategic priorities and targets

4

Summary

5

100

Strategic priorities and targets for 2014-16

Deliver Cramo Story Drive Cramo Performance Management

1 2

Other initiatives

#

• Rebranding of Theisen Group in

October 2014

• Implement processes and

resources to live up to Cramo Story promises

• Build common identity

Improve cost- competitiveness

• District by district development

through performance audits

• Drive Cramo Performance

Management at depot level

• Customer focus in depot
• perations and sales management
• Target to ramp up sales
• Complete the transition program
• Strengthen the existing container-

based business of C/S Raum

• Continue to introduce new Nordic

standard modules to GER market

• Support growth and best-in-town

approach through acquisitions

Improve capital efficiency Increase

• perational

efficiency Increase customer focus Increase market share Sales growth Differentiate from competition Strengthen corporate culture Clearly improved EBITA margin Increase sales Improve resilience to seasonality Stronger position in German MS

101

Agenda

Profitable growth in Central Europe Overview of business segment Central Europe

1

Recent achievements

2

Key market trends

3

Strategic priorities and targets

4

Summary

5

102

Central Europe is an increasingly important part of Cramo Group Performance in 2013 has not met expectations. Current main focus is to ramp up rental sales Since the acquisition of Theisen Group in 2011, a lot

• f work has been done for transition to a strong multi-

category, customer-focused rental company Recent achievements in modular space are promising, growth and position to be further strengthened both

• rganically and inorganically

Overall construction and rental outlook suggests stable growth throughout the strategy period 2014-16 MWB#3 will enable Cramo to win Central Europe Target to increase market share and profits

Key messages: business segment Central Europe

CRAMO PLC

Capital Markets Day CRAMO ADAPTEO

Petri Moksén, SVP 9 September 2014

ROOM FOR GREAT DAYS

104 104

What is modular space?

Flexible solutions for wide array of temporary space needs

Cramo Adapteo Temporary space needs Schools Day care Office space Accommodation

• Cramo rebranded its high

quality modular space

• perations as Cramo

Adapteo in early 2014

• Adapteo’s main customer

group is the public sector. Industrial companies and large projects also important

• Modular space is an

important growth area for the Cramo Group Temporary need Site-specific

Initial need often for 1-3 years, but contracts typically extended up to 5 years Competitive solutions especially for site- specific space need (e.g. schools)

81,1 38,2 26,0 Sales EBITDA EBITA

64 60 74 84 82

2009 2010 2011 2012 2013

105

Cramo Adapteo in brief

Leading non-construction modular space player in Northern Europe

Footprint Key facts

• Cramo Adapteo provides high standard modular space for intermediate to long

term usage

• Leading modular space player in Northern Europe for non-construction

applications

• Market leader in the Nordic region with a strong presence in all Nordic

countries

• Backbone of the operational model is the efficient network of hubs/central

warehouses

• In-house product development , outsourced production
• Number of employees ~100
• Non-cyclical, growing business with long contracts and significant order book

Sales development (€’m)

FINLAND SWEDEN NORWAY GERMANY DENMARK LITHUANIA LATVIA ESTONIA

2014 2013

Note: Sales excluding discontinued operations * Financials refer to Cramo’s modular space operations in the Nordic countries. Cramo’s modular space operations in the Baltic countries generated total sales of EUR 0.7m in 2013 (included in sales development graph above)

Financials 2013* (€’m)

Rental sales 47.2%

• f sales

32.0%

• f sales

106

Cramo Adapteo key milestones

Strong organic growth even during downturns

2006 2010 2012 2014

Key operational accomplishments

Harmonized fleet across countries Strengthened modular space organization Continuous commitment and increased resources Wide MS fleet offering through own product development

Track record of steady growth in the Nordic markets Ready growth platforms in Germany and the Baltics

2008

• 2010: Sale of 13 customised

contracts in Finland

• 2012: Sale of production

plants and customised MS business in FIN (non-core)

• Since 2010-: Significant

investments in standard MS fleet, own new designs

Focused MS strategy

2013-: Organic growth in the Baltics

German entry

Q1

• C/S Raum acq.
• Organic growth

Must-win battle in NOR and DEN Tilamentti Oy

• 1977: Established to provide

locker rooms for industry

• 1980: First modular buildings

Cramo Instant (Swe)

• 1984-85: Established

Nordic market entries

• 2002: Norway
• 1995: Denmark

Early milestones 2006: Merger of RK and Cramo

MS growth strategy

107

Market leading modular space solutions

Cramo Adapteo (Non-construction)

Schools Day care Office space Accommodation

Rental price

C60 PK 2000 C100 C30 9-Series C40 C80 C10 Central ventilation Local ventilation Energy efficiency

Equipment rental

• Cramo’s energy efficient solutions have been designed for Nordic conditions and deliver a user

experience comparable to permanent buildings

• Clear separation between construction (site huts) and non-construction applications
• Medium lease duration
• 29,300 site huts
• Serves construction

industry

• 2013 total sales of

EUR 82m

• EUR 204m invested

capital (YE 2013)

• Long lease durations
• 16,700 modular units
• Utilisation stable

between 85-90%

7% 4% 4% 5% 6% 8% 10% Sweden Finland Norway Denmark Nordics T

• tal

Germany Baltics 108

Presence in attractive and growing markets

Highlights Market growth rates by region (CAGR:2014-2016E) Nordics

• Nordic market expected to

grow at least 6% p.a.

• In line with 2008-13A market

growth

• Sweden expected to

continue strong market growth Growth markets

• Improving rental penetration

in the large German market results in high potential

• Baltics are developing, but

the market is yet immature

Continuous growth in steady Nordic markets

Added potential from Germany and the Baltics

Source: Management estimates

109

Clear growth drivers in each market

Key growth drivers by country Modular space growth drivers

Increasing awareness Economic growth Renovation needs Changing demographics Demand for high quality modules Tightening regulation

• Improving quality

perception and acceptance

• Dynamic and

changing environment creates demand

• Site-specific space

need during the renovation period

• Fluctuating space

needs: day care, schools, elderly care

• End-users increasingly

require permanent-like quality

• Especially regarding

energy efficiency

Sweden Finland Norway Denmark Germany Baltics

• Tightening regulation
• Renovation needs
• Renovation needs

particularly in public sector

• Increasing acceptance
• Renovation needs: Schools

and day cares

• New schools and day cares
• Renovation needs: Schools

and day cares

• Accommodation, site offices
• Tightening regulation
• Increasing awareness
• Renovation needs
• Increasing awareness and

acceptance of MS solutions

110

Modular space growth strategy 2014-

Organic growth in the Nordics, also inorganic in the growth markets

Inorganic growth Organic growth Sweden, Finland, Norway, Denmark

• Grow faster than the market
• Continue investing in the business
• R&D: Continuous development of new and existing

solutions

• Fleet: Invest in new solutions to meet demand
• Pilot test of new module type

Germany

• Maintain and strengthen the existing container

based business of C/S Raum

• Continue to introduce new Nordic standard modules

to the German market

• Strengthen local organization

Baltics

• Develop the organization and business processes
• Focus on the public sector (Schools, Day care)

Sweden, Finland, Norway, Denmark

• Acquisitions not a strategic priority in the Nordic

countries

• Standardized module offering important from
• perational and profitability perspective
• Acquisition of companies with large fleets lead to

dissynergies

Focus on German market

• Substantial potential in the German market
• Grow through acquisitions: Acquire container

businesses with relevant customer base and add Nordic standard modules to the offering

• Expand to new geographical areas in Germany

Possible entry to new markets

• Modular space expansion to new countries also an
• ption

Nordics Growth markets

111

Expansion in Central Europe

Accelerated growth targeted through acquisitions

Highlights Entry model

• Central Europe is a key

growth market for Adapteo

• Expansion possible also
• utside current Cramo

markets

• Concept: Combine local

expertise with Cramo Adapteo product offering, resources and know-how

• 1. Acquisition
• 2. Secure solid

profitability and steady growth

• 3. Ramp up

modular business

• Acquire local company with

attractive customer base preferably in a new region

• Strengthen target organization,

streamline processes and find synergies

• Introduce Nordic standard

modules, strengthen resources, focus on active sales

Illustrative growth plan

• Highlights
• Acquire local container

businesses

• Continue organic growth in

the acquired companies

• Ramp up of modular

business

Ramp up of modular space business Containers (organic gr.) Containers (inorganic gr.)

Accelerating total growth

112

Case CS RaumCenter

Platform for future expansion acquired in April 2014

Geographical footprint Key facts

Background

• German presence in equipment rental established

through Theisen acquisition in 2011

• Entry into attractive German modular space market

a strategic priority

Company profile Rationale Key synergies

• Acquisition of C/S Raum in April 2014
• Strong regional brand in container-based modular

space rental

• Sales of app. €4m in 2013
• 900 units of modular space, 21 employees
• Founded in 1980
• Combination of local German company and Nordic

standard modules

• Right size, strong local expertise and customer

contracts

• Fleet transfers between countries
• Best practice sharing
• Sales leads from Cramo
• Support function synergies

Product offering examples

• Geographic focus on

the Frankfurt area

113

New major deal with TWL

Nordic standard modules essential in securing the project

Geographical footprint Key facts

Background

• TWL was interested in high quality and energy

efficient solution based on Nordic modules

• Use of C/S Raum organization for assembly and

support

TWL in brief The project Why did Cramo Adapteo win?

• Municipal supplier of electricity, gas, heat, cold and

drinking water for households and the industry

• App. 600 employees and sales of €265m in 2012
• Energy efficiency and environment important

values in the organization

• Signed in April 2014
• High quality Nordic standard modules
• 4 year contract
• Total square meters 2.500 m2
• Energy efficiency: Cramo Adapteo offered well

isolated modules that require substantially less heating

• Renewable resources: Cramo Adapteo’s modules

are manufactured 100% out of wood

The site

• Site locates close to

C/S Raum HQ in the Frankfurt region

114

Positioning of Cramo Adapteo

”Mainly containers” ”International players” ”Regional / national players” ”Focus on higher quality”

Quality Size Highlights / targets

• Cramo Adapteo is the

modular space champion in Northern Europe

• Adapteo’s target is to

continue growth in the high quality segment and in Central Europe

• Larger companies typically

have substantial container- based businesses

• Nordic competition positively

impacts modular space awareness Cramo Adapteo Target

CRAMO PLC

Capital Markets Day SUMMARY

Vesa Koivula, President and CEO 9 September 2014

FOR A GREAT DAY AT WORK

Summary: Cramo Group’s strategy

Core purpose Contribute to customers’ success by preventing and solving problems – Making lives easier Vision The role model in all rental Values Commitment Credibility Creativity Strategy crystallization: Cramo People living the Cramo Story Must-Win Battles Targets

EBITA-% > 15 % of sales over a business cycle

Gearing maximum 100 % ROE-% > 12 % over a business cycle

Profit distribution policy: stability, with appr. 40 % of EPS

Sales growth faster than the market

Deliver Cramo Story Drive Cramo Performance Management Win Central European market

116