CRAMO PLC INTERIM REPORT 1.1.2015 30.9.2015 CEO Vesa Koivula CFO - - PowerPoint PPT Presentation

SLIDE 1

CRAMO PLC

INTERIM REPORT 1.1.2015 – 30.9.2015 CEO Vesa Koivula CFO Martti Ala-Härkönen

SLIDE 2

2

Contents

• Highlights of Q3/2015 and market
• utlook
• Interim report Q3/2015

Group performance Business segments

• Performance improvement actions

and Group strategy implementation driving value creation

• Appendix

Additional information

SLIDE 3

3

Highlights of Q3/2015

Sales growth and profitability improvement continued

Sales:

• Sales growth continued in Q3/2015 y-o-y

Sales growth 3.0% in local currencies In local currencies, sales grew by 5.9% in FIN and by 7.3% in SWE Core rental sales continued to grow y-o-y Modular space rental sales continued to grow according to target (growth 8.7% in 1-9/2015 y-o-y)

Costs:

• Performance improvement actions have had a positive effect
• n the Group’s cost base

In 1-9/2015, indirect costs before non-recurring items decreased by EUR 7.9 million y-o-y Direct cost ratio (materials and services divided by sales) decreased clearly in Q2 and Q3 of 2015 vs. last year

Results:

• Comparable EBITA before non-recurring items* improved to

EUR 31.4 (30.5) million, EBITA margin 18.2% (17.8%)

Profitability continued to improved in both Equipment Rental and Modular Space

• Strong cash flow from oper. activities: EUR 53.7 (33.2) million
• Earnings per share* EUR 0.45 (0.45)
• Guidance for 2015 unchanged

Number of depots 09/2015: 329

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 Switzerland Kalinin- grad

* EBITA and EPS before EUR 1.2m non-recurring cost related to CEO change

SLIDE 4

65 70 75 80 85 90 95 100 105 110 115 120 125 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Economic Sentiment Indicator (ESI) Finland Sweden Germany Denmark Poland Europe

Conclusions

Source: European Commission, September 2015

Long-term average Mar 2009

Lead indicator: economic sentiment 2008-Q3/2015

Jan 2011

• Economic sentiment

remaining positive and broadly stable in Europe

– Although recovery has been mixed during 1-9/2015, construction and rental markets are late-cyclical and should benefit from the improved outlook with a certain delay

• Sentiment above long-term

average in Sweden and Germany

• Sentiment in Poland and

Denmark slightly below long-term average

• Finland still stagnated below

the long-term average

SLIDE 5

• 60
• 40
• 20

20 40 60 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Construction Confidence Indicator (mean-adjusted) Finland Sweden Germany Denmark Poland Europe

Source: European Commission, September 2015

Long-term average Jun 2009

Lead indicator: construction confidence 2008-Q3/15

Cramo’s main markets performing well

Feb 2011 Conclusions

• After several years of

decline, total Europe construction confidence currently at long-term average level

• Construction confidence on

a high level in Sweden and Germany

• Recent development for

Finland is promising new investments supporting construction sector

• Poland still above long-term

average, while Denmark somewhat below average

SLIDE 6

Construction growth estimates 2015-17

In 2015 markets still mixed, generally positive outlook over 2016-17

Sources: Euroconstruct, June 2015 and Forecon, June 2015 * For Russia, 2014 is still Forecast Country-specific data in brackets includes: Finland - Rakennusteollisuus RT (October 2015); Sweden - Sveriges Byggindustrier (October 2015); Denmark - Dansk Byggeri (September 2015)

Construction output (% change in real terms)

2014 2015F 2016F 2017O Finland

• 0,4%

(-3,7%)

0,0%

(-1,0%)

2,9%

(+2,0%)

2,1% Sweden 6,8%

(+15,0%)

5,0%

(+8,0%)

1,0%

(+3,0%)

0,6% Norway 1,9% 2,6% 2,1% 2,2% Denmark 2,5%

(2,7%)

1,2%

(3,5%)

2,7%

(0,3%)

3,3% Baltics 5,0%

• 3,0%

4,0% 4,0% Poland 5,2% 9,7% 7,8% 8,2% Czech Republic 4,3% 4,3% 4,4% 5,2% Slovakia

• 3,9%

2,1% 1,6% 1,0% Germany 2,8% 0,9% 0,9% 0,0% Austria 0,4% 0,5% 1,0% 1,5% Russia*

• 4,0%
• 6,0%

1,0% 4,0%

6

SLIDE 7

• 2%
• 1%

0% 1% 2% 3% 4% 5% 6% 2014 2015F 2016F Nominal rental growth estimates Finland Sweden Norway Denmark Germany Poland

7

Source: European Rental Association, The European Equipment Rental Industry 2014 Report, October 2014 and Revised by Statistic Committee June Presentation

• Generally strengthening

rental outlook in Cramo countries over 2015-16

• ERA expects all Cramo

countries to turn to rental growth in 2015

• In 2015, highest growth

estimated in Poland and Denmark

• Highest gains in rental

volume over 2015-16 expected to be seen in Poland, Denmark and Finland

Strengthening rental outlook 2015-16

Weighted average growth 0.8%*

Highlights

2.2% 2.7%

* Weighted by Cramo’s 2014 total sales in the countries in question

SLIDE 8

8

Q3 / 2015 Group performance

SLIDE 9

144,2 161,1 181,6 192,9 160,0 161,4 182,4 184,6 148,5 160,1 173,6 175,1 140,3 159,8 171,1 180,6 147,1 161,3 172,4

• 10%

0% 10% 20% 30% 40% 50% 20 40 60 80 100 120 140 160 180 200 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Quarterly sales growth % (y-o-y), line graph) Quarterly sales (EUR million, bar graph)

9

Cramo quarterly sales development

• Q3/2015 sales EUR 172.4m,

y-o-y sales growth +0.7% (+3.0% in local currencies)

− Weaker SEK and NOK cont. to impact sales growth − Rental sales continued to grow y-o-y

• In local currencies, sales

grew by 5.9% in Finland, by 7.3% in Sweden and by 3.9% in Eastern Europe

− Sales decreased in Norway, Denmark and Central Europe, where operations have been restructured

• 1-9/2015 sales EUR 480.7m,

y-on-y sales growth +2.0% (+4.6% in local curr.)

− Sales in modular space grew by 7.4% in local currencies

Q3/15 vs. Q3/14: +0.7% (+3.0%*) 1-9/15 vs. 1-9/14: +2.0% (+4.6%*)

* Change in local currencies

Highlights

Group financial target: Sales growth faster than the market

SLIDE 10

2,5 14,3 30,5 23,8 10,6 14,3 31,2 21,9 6,4 16,5 32,3 24,8 4,4 12,5 30,5 23,0 10,1 18,4 31,4

• 25%
• 20%
• 15%
• 10%
• 5%

0% 5% 10% 15% 20% 25% 5 10 15 20 25 30 35 40 45 50 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 EBITA % (line graph) Quarterly EBITA (EUR million, bar graph)

10

Cramo quarterly EBITA development

• Q3/15 EBITA before non-

recurring items improved to EUR 31.4 (30.5) million, or 18.2% (17.8%) of sales

− Non-recurring cost of EUR 1.2m related to CEO chane − Direct cost ratio continued to improve in Q3/15

• In Q3/15, all business

segments except Norway and Eastern Europe improved profitability

− Strong improvement in Finland in still weakish market − In Sweden, performance improvement actions taken, which are expected to bring results going forward − Denmark and Central Europe continued to improve

Group financial target: EBITA margin > 15%

Highlights

SLIDE 11

47,3 59,9 1,8 4,8 1,1 2,2 2,4 0,7

• 0,6

30,0 35,0 40,0 45,0 50,0 55,0 60,0 65,0

Group 1-9/2014 Finland Sweden Norway Denmark Central Europe Eastern Europe Non-allocared and elim. Group 1-9/2015

Cumulative EBITA (EUR million)

EBITA bridge 1-9/2014 1-9/2015 by segments

Absolute EBITA and EBITA margin improved in all segments

11

• 1-9/15 EBITA before NRI*

EUR 59.9 (47.3) million, or 12.5% (10.0%) of sales

• Performance improvement

actions and tight cost control have contributed

• n the results

− Comparable indirect costs before NRI decreased by EUR 7.9m in 1-9/2015 vs. LY − Direct cost ratio continued to improve in Q3/15

• In 1-9/15, profitability

improved in all business segments and product areas

• Long-term strategic focus in

modular space bearing fruit Highlights

Performance improvement actions and tight cost control bearing fruit. In SWE market remained good Improving markets in PL, CZ and SLO contributing to performance

10.0%

• f

sales 12.5%

• f

sales

FIN imp- roving in still weak market Growth in expenses associated with share- based payments

* EBITA before EUR 1.2m non-recurring cost related to CEO change

SLIDE 12

0,37

• 0,17

0,08 0,38 0,25 0,04 0,11 0,43 0,34

• 0,04

0,19 0,48 0,38

• 0,03

0,11 0,45

• 0,17

0,09 0,23

• 0,3
• 0,2
• 0,1

0,0 0,1 0,2 0,3 0,4 0,5 0,6 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Quarterly diluted EPS (EUR)

12

Cramo EPS performance (diluted)

• Comparable Q3/15 EPS

before non-recurring items EUR 0.45 (0.45)

− EPS after non-recurring items, EUR 0.43 (0.45)

• Q3/15 net financial

expenses EUR 3.7 (3.1) million, EUR 0.6 million higher than last year

Effect of unrealised FX losses

• Q3/15 effective tax rate

22.9% (20.5%)

• Comparable 1-9/15 EPS

before non-recurring items EUR 0.78 (0.54)

− EPS after non-recurring items EUR 0.75 (0.54)

* Q4/2011 includes write-downs on Group goodwill totalling EUR 5.5m ** Q4/2012 includes non-recurring items having a positive net impact of EUR 3.5m on net result, or EPS EUR 0.08 *** Q4/2013 includes non-recurring items having a positive impact of EUR 1.6m on net result, or EPS EUR 0.04 **** Q3/2015 includes a non-recurring item of EUR 1.2m with a negative impact on EPS of EUR 0.02

* ** *** Highlights

Q4/14 non-recurring items amounted to EUR 0.54 and Q3/15 item to EUR 0.02 negative

0,45 ****

SLIDE 13

8,3 % 9,6 % 10,8 % 10,6 %

• 0,2 %

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

• 1%

1% 3% 5% 7% 9% 11% 13% 15% Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 ROE % Return on Equity %

13

Return on Equity

• Comparable ROE before

non-recurring items (rolling 12m) 10.6%

− Before Q4/14 non-recurring restructuring expenses of EUR 2.9m and EUR 25.5m non-cash impairment on goodwill and intangible assets in Central Europe, and before Q3/15 NRI of 1.2m on CEO change

• Efforts continue to reach the

financial target level of > 12% ROE over the cycle

− In 2015, performance improvement actions continue especially with regard to direct costs (materials and services) − Further implementation of must-win battles

• ROE after non-recurring

items (rolling 12m) 5.4%

Group financial target: ROE-% > 12%

Highlights

Return on Equity % before non-recurring items

SLIDE 14

25,2 53,7

• 13,3

10,9

• 60
• 40
• 20

20 40 60 80 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Quarterly cash flow (EUR m)

Cash flow from operations Cash flow after investments

14

Quarterly cash flow

Strong cash flow in 2015

• Strong cash flow in 2015 –

cash flow vs. LY improving clearly in Q3/15 and 1-9/15

• Q3/15:

− Cash flow from operations EUR 53.7m (33.2m), +62% vs. LY, contributed by improved working capital management − Cash flow after investments EUR 10.9m (-5.4m) − Gross CapEx EUR 46.7m (45.1m)

• 1-9/15:

− Cash flow from operations EUR 111.6m (70.4m) − Cash flow after investments EUR -1.4m (-26.8m) − Gross CapEx EUR 134.3m (125.5m)

Acquisition of Theisen Group Acquisition of Tidermans in Sweden and Stavdal in Norway Formation of Fortrent, acquisitions in Norway

Highlights

Acquisition of Optirent in Finland and C/S RaumCenter in Germany Acquisition of Vuokra-Pekat Oy and Visby Hyrmaskiner

SLIDE 15

15

Q3 / 2015 Business segments

SLIDE 16

16

Finland

Continued sales growth and improved profitability

• In Q3/15, sales continued to grow by 5.9% year-
• n-year

− Market situation in new construction remained weak, but Cramo estimates that markets gradually improving − Good sales performance was contributed by brisk demand in renovation and the acquisition of Vuokra- Pekat Oy in February. Also, the demand for rental- related services remained reasonably good in industries

• ther than the construction sector

− Demand for modular space continued to be strong especially in the public sector

• Profitability improvement continued, EBITA EUR

8.5 (7.5) million in Q3, margin 27.6% (25.7)

• Modular space delivered to Metsä Group’s bio-

product mill project in Äänekoski, also project depot Highlights Rolling 12-month sales and EBITA-%

Change Change % % Sales (€m) 30,8 29,1 5,9 % 81,4 76,9 5,8 % 104,2 EBITA (€m) 8,5 7,5 13,8 % 16,8 15,0 12,3 % 20,4 EBITA-% 27,6 % 25,7 % 20,7 % 19,5 % 19,6 % No of personnel (FTE) 448 435 3,0 % 428 No of depots 55 53 3,8 % 53 7-9/ 2015 7-9/ 2014 1-9/ 2015 1-9/ 2014 1-12/ 2014 Key figures

108,7 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 % 20,5 % 19,6 % 19,5 % 19,9 % 20,5 %

0% 5% 10% 15% 20% 25% 20 40 60 80 100 120 140 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 Q3/2014 Q4/2014 Q1/2015 Q2/2015 Q3/2015

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

Sales (R12m) EBITA-% (R12m)

SLIDE 17

Change Change % % Sales (€m) 80,4 76,8 4,8 % 233,4 223,5 4,4 % 312,7 EBITA (€m) 18,1 17,2 5,1 % 42,7 37,9 12,8 % 55,6 EBITA-% 22,5 % 22,4 % 18,3 % 16,9 % 17,8 % No of personnel (FTE) 820 825

• 0,6 %

806 No of depots 100 116

• 13,8 %

102 1-9/ 2015 7-9/ 2015 7-9/ 2014 1-9/ 2014 1-12/ 2014 Key figures

17

Sweden

Continued sales growth and improved profitability

• In Q3, sales increased by 4.8% (+7.3% in loc.).

In 1-9/15, sales grew by 8.2% in local currency

• In Q3, profitability improved y-o-y with EBITA at

EUR 18.1m (17.2m)

− Positive market development continued − Direct costs under pressure due to high utilisations − In Q4, further price increases and performance improvement actions focused especially on direct costs, such as repair and maintenance and transport

• ptimisation

− Further implementation of Cramo Story

• According to forecast1, residential construction will

keep on growing and the estimated overall growth

• f construction activity in 2015 remains at 8%

+1.7%*

Highlights Rolling 12-month sales and EBITA-%

* Change in local currencies

+8.2%* +7.3%*

322,6 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 % 16,9 % 17,8 % 18,5 % 18,7 % 18,7 %

0% 5% 10% 15% 20% 25% 50 100 150 200 250 300 350 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 Q3/2014 Q4/2014 Q1/2015 Q2/2015 Q3/2015

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

Sales (R12m) EBITA-% (R12m)

1 Forecast published by the Swedish Construction Federation (Sveriges Byggindustrier) in October

SLIDE 18

Change Change % % Sales (€m) 16,6 21,5

• 22,5 %

53,4 61,1

• 12,6 %

82,5 EBITA (€m) 1,0 1,4

• 25,9 %

4,0 2,9 39,6 % 4,5 EBITA-% 6,1 % 6,4 % 7,5 % 4,7 % 5,4 % No of personnel (FTE) 218 253

• 13,8 %

235 No of depots 28 28 0,0 % 28 Key figures 7-9/ 2015 7-9/ 2014 1-9/ 2015 1-9/ 2014 1-12/ 2014

18

Norway

Challenging market, profitability improved in 1-9/15

• In Q3, sales decreased by 22.5% year-on-year

(-13.9% in local currency)

− Challenging market, the reduction of depot network and

• ther restructuring measures carried out in 2014 and

2015 affected also on sales − Low investment activity in the energy sector

• Q3 EBITA EUR 1.0m (1.4m), margin 6.1% (6.4%)

− The performance improvement actions carried out improved profitability. In Q3, however, the decrease in sales impaired profitability − Specific actions to improve sales operations and

• perational efficiency will continue. More resources will

be allocated to the modular space product area

• Market institutions estimate cautious growth for

construction and rental market in 2015 Highlights Rolling 12-month sales and EBITA-%

• 6.9%*
• 13.9%*

* Change in local currencies 74,8 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 % 5,9 % 5,4 % 5,5 % 7,5 % 7,5 %

• 1%

0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10 20 30 40 50 60 70 80 90 100 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 Q3/2014 Q4/2014 Q1/2015 Q2/2015 Q3/2015

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

Sales (R12m) EBITA-% (R12m)

SLIDE 19

19

Denmark

Profitability continued to improve, focus actions bearing fruit

• In Q3, sales decreased by 4.1% year-on-year

− Restructuring of equipment rental operations in 2014 decreased sales

• Q3 EBITA was EUR 0.7m (0.3m), or 10.0%

(4.6%) of sales

− Profitability was improved by the restructuring measures carried out in late 2014. Focus on more profitable product and service segments and geographic regions − In 2015, clear improvement in profitability in both product areas − Focus of operations to the modular space product area has been successful

• Equipment rental and construction markets fore-

casted to grow in 2015 Highlights Rolling 12-month sales and EBITA-%

27,9

• 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 %
• 3,2 %
• 11,4 %
• 7,2 %
• 5,3 %
• 4,0 %
• 14%
• 12%
• 10%
• 8%
• 6%
• 4%
• 2%

0% 2% 5 10 15 20 25 30 35 40 45 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 Q3/2014 Q4/2014 Q1/2015 Q2/2015 Q3/2015

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

Sales (R12m) EBITA-% (R12m)

Change Change % % Sales (€m) 7,2 7,5

• 4,1 %

20,0 21,6

• 7,4 %

29,5 EBITA (€m) 0,7 0,3 107,6 % 1,2

• 1,0
• 3,4

EBITA-% 10,0 % 4,6 % 6,1 %

• 4,7 %
• 11,4 %

No of personnel (FTE) 98 121

• 19,0 %

118 No of depots 8 7 14,3 % 8 Key figures 7-9/ 2015 7-9/ 2014 1-9/ 2015 1-9/ 2014 1-12/ 2014

SLIDE 20

20

Central Europe

Profitability improvement continued, sales not meeting the target

• In Q3, sales decreased by 1.5% year-on-year

− In the third quarter, the demand for rental services was slightly weaker than estimated − Fleet utilisation rates continued to gradually improve. Going forward, the goal is to further improve fleet utilisation rates and to develop pricing

• Q3 EBITA EUR 1.5m (0.4m), margin 6.6% (1.9%)

− A clear improvement in profitability contributed by performance improvement actions and cost cuts − Operations are further focused on best-performing

• regions. Work will also continue to further develop sales,

pricing and operational processes

• Modular space business has got off to a good start.

Modular space demand continued to be at a good level Highlights Rolling 12-month sales and EBITA-%

77,4

• 0,9 %
• 0,2 %
• 0,6 %
• 1,4 %
• 1,3 %
• 4,7 %
• 6,8 %
• 7,7 %
• 7,0 %
• 5,9 %
• 4,6 %
• 10%
• 8%
• 6%
• 4%
• 2%

0% 2% 10 20 30 40 50 60 70 80 90 Q1/2013 Q2/2013 Q3/2013 Q4/2013 Q1/2014 Q2/2014 Q3/2014 Q4/2014 Q1/2015 Q2/2015 Q3/2015

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

Sales (R12m) EBITA-% (R12m)

Change Change % % Sales (€m) 22,1 22,5

• 1,5 %

55,7 56,0

• 0,5 %

77,7 EBITA (€m) 1,5 0,4 241,4 %

• 3,0
• 5,4
• 6,0

EBITA-% 6,6 % 1,9 %

• 5,3 %
• 9,6 %
• 7,7 %

No of personnel (FTE) 361 384

• 6,0 %

363 No of depots 74 76

• 2,6 %

75 Key figures 7-9/ 2015 7-9/ 2014 1-9/ 2015 1-9/ 2014 1-12/ 2014

SLIDE 21

Change Change % % Sales (€m) 15,4 14,9 3,4 % 37,5 35,8 4,8 % 50,0 EBITA (€m) 4,0 4,3

• 5,4 %

4,6 4,0 17,0 % 6,2 EBITA-% 26,3 % 28,7 % 12,4 % 11,1 % 12,3 % No of personnel (FTE) 465 460 1,2 % 456 No of depots 64 64 0,0 % 63 Key figures 7-9/ 2015 7-9/ 2014 1-9/ 2015 1-9/ 2014 1-12/ 2014

21

Eastern Europe1

Overall good performance, however variations between markets

1 As of 1 March 2013, sales in Eastern Europe come from Estonia, Latvia, Lithuania, Poland, the Czech Republic, Slovakia and the

Kaliningrad region in Russia. Cramo’s share (50 per cent) of the net result of Fortrent, the joint venture of Cramo and Ramirent in Russia and Ukraine, is included in the EBITA of the Eastern Europe business segment.

• In Q3, sales increased by 3.4% year-on-year

(3.9% in local currency)

− Business developed favourably in Poland, the Czech Republic, Slovakia and Lithuania. In Estonia, Latvia and Russia (Fortrent), rental demand has decreased

• Q3 EBITA was EUR 4.0m (4.3m), or 26.3%

(28.7%) of sales

− Profitability improved especially in Poland and in Czech and Slovakia, whereas in Estonia profitability has decreased, however still remaining on a good level

• Fortrent Q3/2015

− Sales EUR 7.4m (10.4m), i.e. down by 28.7% y-o-y. In local currencies, sales grew by 4.4% − Profit for the period EUR 0.6m (0.9m). Cramo’s share 0.3m (0.5m) included in Eastern Europe EBITA

Highlights Rolling 12-month sales and EBITA-%

* Change in local currencies

3.9%* 5.2%*

51,7

• 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 % 15,2 % 12,3 % 13,5 % 13,8 % 13,2 %

• 20%
• 15%
• 10%
• 5%

0% 5% 10% 15% 20% 25% 10 20 30 40 50 60 70 80 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 Q3/2014 Q4/2014 Q1/2015 Q2/2015 Q3/2015

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

Sales (R12m) EBITA-% (R12m)

SLIDE 22

ADDITIONAL INFORMATION BY PRODUCT AREA EUR 1'000 1-9 2015 1-9 2014 1-9 2015 1-9 2014 1-9 2015 1-9 2014 1-9 2015 1-9 2014 Sales 411 726 406 160 69 393 66 051

• 411
• 1 041

480 708 471 170

Sales growth 1,4 % 5,1 % 2,0 %

EBITDA 108 614 96 310 32 653 29 211

• 7 455
• 6 054

133 812 119 466

% of sales 26,4 % 23,7 % 47,1 % 44,2 % 27,8 % 25,4 %

Depreciation

• 63 672
• 62 088
• 11 007
• 9 891
• 446
• 184
• 75 125
• 72 164

EBITA 44 942 34 221 21 646 19 320

• 7 901
• 6 239

58 687 47 303

% of sales 10,9 % 8,4 % 31,2 % 29,3 % 12,2 % 10,0 %

Capital employed 641 661 696 787 239 276 217 689 26 779 27 948 907 715 942 423 Equipment rental Modular Space Unallocated amounts and eliminations GROUP

Financial summary by product area 1-9/2015

Sales growth and improved profitability in both product areas

+7.4%* +4.0%*

* Change in local currencies

SLIDE 23

23

Performance improvement actions and Group strategy implementation driving value creation

SLIDE 24

Performance improvement actions for Q4/2015

24 COMMON ACTIONS FOR ALL BUSINESSES SEGMENT- SPECIFIC ACTIONS

SWEDEN Implementation of sales performance management model, continued tight indirect cost control, improvement of direct cost ratio NORWAY DENMARK CENTRAL EUROPE

• Continue price increases
• Performance

improvement actions focused especially on direct costs, such as repair and maintenance and transport

• ptimisation
• Sales actions in targeted

geographical areas

• Additional resources to

modular space

• Continue general

improvement of

• perational efficiency
• Continue focus of
• perations to profitable

product and service segments

• Continued focus on

modular space

• Specific focus on sales

performance management

• Pricing optimisation and

further development of process efficiencies

• Focus operations further
• n best-performing

geographic regions

SLIDE 25

197,1 189,2 58,9 59,5 70,7 64,9 67,6 64,8 41,8 % 39,4 % 34,4 % 34,5 % 44,2 % 40,2 % 48,2 % 44,1 %

50 100 150 200 250 300 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55%

2014 2015 2014 2015 2014 2015 2014 2015 Jan-Sep . Q3 . Q2 . Q1 Indirect cost (EUR million) Indirect cost ratio Indirect cost (right axis) Indirect cost ratio (left axis) 165,4 166,5 60,2 59,0 56,9 55,5 48,3 52,0 35,1 % 34,6 % 35,2 % 34,2 % 35,6 % 34,4 % 34,4 % 35,3 %

50 100 150 200 250 300 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55%

2014 2015 2014 2015 2014 2015 2014 2015 Jan-Sep . Q3 . Q2 . Q1 Direct cost (EUR million) Direct cost ratio Direct cost (right axis) Direct cost ratio (left axis)

25

Development in cost base in 1-9/2015*

Direct cost ratio has improved since increased focus after Q1/15 Indirect cost EUR 7.9m lower y-o-y in 1-9/15, thanks to savings in H1

* Comparison before reported non-recurring items

1 Direct cost refers to income statement line ”Materials and services” 2 Indirect cost refers to income statement lines ”Employee benefit expenses” and ”Other operating expenses”

QUARTERLY INDIRECT COST 2 QUARTERLY DIRECT COST 1

SLIDE 26

26

New strategy enables financial target realisation

New strategy translated into concrete actions to drive value creation

Deliver Cramo Story Drive Cramo Performance Management Win Central European market

1 2 3

P&L impact Implementation status Indirect costs Depreciation Sales Direct costs Indirect costs Sales Direct costs Sales Direct costs

Cramo Story internal implementation on- going in all operating countries (“OpCos”) Delivery precision program on-going Cramo Story brand promises externally launched in November 2014, further launching in 2015 Depot Performance Mgt implemented in all OpCos, constant follow-up & improvement Repair & maintenance work stream under implementation in the Nordics Sales Perf. Mgt under implementation Purchasing work stream under implement. Fleet range extended, new organization, systems and processes in place Entry into modular space in H1/14 Intensified performance improvement actions under implementation

− Sales ramp-up, balancing cost base vs. sales

SLIDE 27

27

Cramo modular space growth strategy

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

Footprint Modular space growth strategy

Organic growth

• Grow faster than the market and continue investing in the business in the Nordics
• Continuous development of new and existing modular solutions in the Nordics
• Maintain and strengthen the existing container-based business of C/S Raum
• Continue to introduce new Nordic standard modules to the German market
• Develop the organisation and business processes in the Baltics

Inorganic growth

• Grow through acquisitions in Germany: Acquire container businesses with relevant

customer base and add Nordic standard modules to the offering

• Expand to new geographical areas in Germany
• Modular space expansion to new countries also an option

Growth and improved profitability in 1-9/15 vs. 1-9/14 (€’m)

FINLAND SWEDEN NORWAY GERMANY DENMARK LITHUANIA LATVIA ESTONIA

2014 2013 66,1 29,2 19,3 69,4 32,7 21,6 Sales EBITDA EBITA 1-9/14 1-9/15

SLIDE 28

In Q3, several modular school projects delivered in Germany

Classrooms in three levels delivered to Klingerschool, Frankfurt

• 2600 square meters
• Project scope included

the complete assembly and commissioning of the plant

• Three-store school is

built from 180 modules, divided into two buildings

• 180 square meters

school delivered from the newest Nordic module type in Rüsselsheim

Capturing the growth in Germany

Cramo Adapteo has a well- established presence in 8 countries with over 19 000 modular space units and with capital employed close to EUR 240m at the end Q3/15

SLIDE 29

In the Nordics, many projects delivered to different segments

• 1130 square meters

daycare built and delivered in Ekerö, Sweden

• New modular space

daycare with 6 departments is built from 180 modules, divided into two buildings

Cramo Adapteo has a well- established presence in 8 countries with over 19 000 modular space units and with capital employed close to EUR 240m at the end Q3/15

• Delivered refugee camps

in Denmark, room for 400 refugees in approx. 180 modules to four different municipalities

Solid growth in the Nordics

SLIDE 30

30

Future prospects

European Central Bank’s monetary stimulus is expected to improve the economic outlook for the eurozone Euroconstruct and Forecon estimate that in 2015, construction would increase in all of Cramo’s operating countries with the exception of Finland, Estonia, Latvia and Russia In the long term, the equipment rental market is expected to grow faster than construction The European Rental Association (ERA) is expecting equipment rental services to increase in all of Cramo’s main markets in 2015. The growth is expected to somewhat strengthen compared to 2014 Guidance for 2015 unchanged: “There are economic and political uncertainties in Cramo’s markets related to 2015. With the current market outlook, Cramo Group’s sales will grow in local currencies and the EBITA margin will improve in 2015 compared to 2014.”

SLIDE 31

Appendix

31

SLIDE 32

32

Key figures

Change Change EUR million (unless otherwise stated) % %

INCOME STATEMENT Sales 172,4 171,1 0,7 % 480,7 471,2 2,0 % 651,8 EBITDA 55,8 55,1 1,3 % 133,8 119,5 12,0 % 167,3 Operating profit (EBITA) before amortisation and impairment of intangible assets resulting from acquisitions 30,2 30,5

• 0,9 %

58,7 47,3 24,1 % 70,3 Operating profit/loss (EBIT) 28,3 27,8 1,5 % 52,5 39,4 33,0 % 34,3 Profit/Loss before tax (EBT) 24,6 24,8

• 0,8 %

42,5 29,6 43,6 % 21,5 Profit/Loss for the period 18,9 19,7

• 3,8 %

33,1 23,5 41,1 % 16,0 SHARE-RELATED INFORMATION Earnings per share (EPS), EUR 0,43 0,45

• 5,2 %

0,75 0,54 39,3 % 0,37 Earnings per share (EPS), diluted, EUR 0,43 0,45

• 3,9 %

0,75 0,53 40,7 % 0,36 Shareholders' equity per share, EUR 10,52 11,13

• 5,5 %

10,40 BALANCE SHEET Equity ratio, % 43,1 % 43,8 % 43,9 % Gearing, % 87,3 % 85,6 % 84,7 % Net interest-bearing liabilities 407,1 415,2

• 1,9 %

385,4 OTHER INFORMATION Return on investment, rolling 12-month, % 5,4 % 6,9 % 4,2 % Return on equity, rolling 12-month, % 5,4 % 8,2 % 3,4 % Gross capital expenditure (incl. acquisitions) 46,7 45,1 3,4 % 134,3 125,5 7,0 % 159,1

• f which related to acquisitions and business combinations
• 0,1
• 0,3

8,5 11,0

• 23,0 %

11,4 Cash flow from operating activities 53,7 33,2 61,9 % 111,6 70,4 58,5 % 118,3 Cash flow after investments 10,9

• 5,4
• 1,4
• 26,8
• 6,5

Average number of personnel, FTE 2 486 2 534

• 1,9 %

2 528 Number of personnel at end of period, FTE 2 478 2 546

• 2,7 %

2 473

1-12/ 2014 7-9/ 2015 7-9/ 2014 1-9/ 2015 1-9/ 2014

SLIDE 33

33

Consolidated income statement

Change Change EUR (1 000) % % SALES 172 358 171 143 0,7 % 480 708 471 170 2,0 % 651 758 Other operating income 2 810 2 471 13,7 % 9 784 10 910

• 10,3 %

13 156 Materials and services

• 58 996
• 60 182

2,0 %

• 166 521
• 165 353
• 0,7 %
• 232 663

Employee benefit expenses

• 33 178
• 31 530
• 5,2 %
• 105 313
• 104 688
• 0,6 %
• 138 500

Other operating expenses

• 27 483
• 27 313
• 0,6 %
• 85 069
• 92 447

8,0 %

• 125 927

Depreciation and impairment on tangible assets and assets held for sale

• 25 571
• 24 583
• 4,0 %
• 75 125
• 72 164
• 4,1 %
• 97 008

Share of profit/loss of joint ventures 266 464

• 42,7 %

223

• 126

276,9 %

• 523

EBITA 30 206 30 469

• 0,9 %

58 687 47 303 24,1 % 70 293 % of sales 17,5 % 17,8 % 12,2 % 10,0 % 10,8 % Amortisation and impairment on intangible assets resulting from acquisitions and disposals

• 1 951
• 2 620

25,5 %

• 6 219
• 7 860

20,9 %

• 35 965

OPERATING PROFIT/LOSS (EBIT) 28 255 27 849 1,5 % 52 468 39 443 33,0 % 34 328 % of sales 16,4 % 16,3 % 10,9 % 8,4 % 5,3 % Finance costs (net)

• 3 684
• 3 090
• 19,2 %
• 9 977
• 9 857
• 1,2 %
• 12 849

PROFIT/LOSS BEFORE TAXES 24 571 24 759

• 0,8 %

42 491 29 586 43,6 % 21 479 % of sales 14,3 % 14,5 % 8,8 % 6,3 % 3,3 % Income taxes

• 5 626
• 5 067
• 11,0 %
• 9 390
• 6 124
• 53,3 %
• 5 471

PROFIT/LOSS FOR THE PERIOD 18 945 19 691

• 3,8 %

33 102 23 462 41,1 % 16 008 % of sales 11,0 % 11,5 % 6,9 % 5,0 % 2,5 % 1-12/ 2014 7-9/ 2015 7-9/ 2014 1-9/ 2015 1-9/ 2014

SLIDE 34

34

Consolidated balance sheet

30.9. 30.9. Change 31.12. EUR (1 000) 2015 2014 % 2014 ASSETS NON-CURRENT ASSETS Tangible assets 668 691 635 831 5,2 % 625 738 Goodwill 149 371 164 187

• 9,0 %

149 472 Other intangible assets 69 364 94 330

• 26,5 %

76 167 Deferred tax assets 13 724 16 032

• 14,4 %

14 336 Available-for-sale financial investments 186 346

• 46,2 %

187 Investments in joint ventures 4 177 13 654

• 69,4 %

4 254 Loan receivables 16 406 18 244

• 10,1 %

17 656 Trade and other receivables 951 1 134

• 16,1 %

1 079 TOTAL NON-CURRENT ASSETS 922 869 943 758

• 2,2 %

888 889 CURRENT ASSETS Inventories 9 811 8 718 12,5 % 9 718 Trade and other receivables 136 520 145 465

• 6,1 %

128 767 Income tax receivables 12 020 12 032

• 0,1 %

10 996 Derivative financial instruments 3 616 125 2794,6 % 3 632 Cash and cash equivalents 8 551 8 104 5,5 % 5 689 TOTAL CURRENT ASSETS 170 518 174 444

• 2,3 %

158 801 Assets held for sale 1 970

• 100,0 %

TOTAL ASSETS 1 093 388 1 120 172

• 2,4 %

1 047 690 30.9. 30.9. Change 31.12. EUR (1 000) 2015 2014 % 2014 EQUITY AND LIABILITIES EQUITY Share capital 24 835 24 835 0,0 % 24 834 Other reserves 325 921 321 872 1,3 % 322 837 Fair value reserve 119

• 100,0 %

Hedging fund

• 7 353
• 8 962

18,0 %

• 8 162

Translation differences

• 23 826
• 9 770
• 143,9 %
• 24 693

Retained earnings 146 606 157 059

• 6,7 %

140 173 EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT COMPANY 466 183 485 153

• 3,9 %

454 990 Hybrid capital TOTAL EQUITY 466 183 485 153

• 3,9 %

454 990 NON-CURRENT LIABILITIES Interest-bearing liabilities 329 462 320 495 2,8 % 294 392 Derivative financial instruments 8 571 8 796

• 2,6 %

9 286 Deferred tax liabilities 69 017 74 331

• 7,1 %

68 096 Retirement benefit obligations 1 822 1 753 4,0 % 1 861 Other non-current liabilities 2 688 1 792 50,0 % 1 797 TOTAL NON-CURRENT LIABILITIES 411 560 407 165 1,1 % 375 432 CURRENT LIABILITIES Interest-bearing liabilities 86 188 102 800

• 16,2 %

96 676 Derivative financial instruments 903 1 306

• 30,8 %

580 Trade and other payables 126 475 118 480 6,7 % 115 377 Income tax liabilities 1 751 4 213

• 58,4 %

3 984 Provisions 326 1 055 652 TOTAL CURRENT LIABILITIES 215 644 227 853

• 5,4 %

217 269 TOTAL LIABILITIES 627 204 635 020

• 1,2 %

592 700 TOTAL EQUITY AND LIABILITIES 1 093 388 1 120 172

• 2,4 %

1 047 690

SLIDE 35

35

Cash flow statement

1-9/ 1-9/ 1-12/ EUR (1 000) 2015 2014 2014 Net cash flow from operating activities 111 601 70 424 118 266 Net cash flow from investing activities

• 113 023
• 97 188
• 124 753

Cash flow from financing activities Change in interest-bearing receivables 1 254 2 015 2 689 Change in finance lease liabilities

• 11 464
• 12 920
• 15 863

Change in interest-bearing liabilities 35 382 63 544 35 414 Hybrid capital Proceeds from share options exercised 3 416 3 428 11 358 Proceeds from share issue Non-controlling interest Dividends paid

• 24 132
• 25 986
• 25 986

Net cash flow from financing activities 4 456 30 081 7 616 Change in cash and cash equivalents 3 035 3 317 1 129 Cash and cash equivalents at period start 5 689 4 770 4 770 Translation differences

• 173

17

• 210

Cash and cash equivalents at period end 8 551 8 104 5 689

SLIDE 36

7,5 8,5 29,1 30,8 2014 2015 1,4 1,0 21,5 16,6 2014 2015 0,4 1,5 22,5 22,1 2014 2015 4,3 4,0 14,9 15,4 2014 2015 17,2 18,1 76,8 80,4 2014 2015

NORWAY DENMARK CENTRAL EUROPE EASTERN EUROPE FINLAND SWEDEN

Sales and EBITA by business segment Q3 2014-15

36

* Sales change in local currency

Sales EBITA

+5.9% 25.7% 27.6%

EBITA margin: Sales growth:

+4.8% (+7.3%*) 22.4% 22.5%

EBITA margin: Sales growth:

• 22.5% (-13.9%*)

6.4% 6.1%

EBITA margin: Sales growth:

• 4.1%

4.6% 10.0%

EBITA margin: Sales growth:

• 1.5%

1.9% 6.6%

EBITA margin: Sales growth:

+3.4% (+3.9%*) 28.7% 26.3%

EBITA margin: Sales growth: 0,3 0,7 7,5 7,2 2014 2015

SLIDE 37

37

Quarterly capital expenditure

• In Q3/2015, organic gross

CapEx was EUR 46.8m (45.4m)

− Organic CapEx increased by 2.9% from Q3/14 − Acquisitions EUR -0.1m (-0.3m)

• In 1-9/2015, organic gross

CapEx was EUR 125.8m (114.5m)

• Strong investments continued

in product area modular space

− Continued good demand for modular space

• By business segment, in

1-9/2015, increased investments in Finland, Sweden Denmark and Eastern Europe

Note: Acquisitions in 2011 include Theisen Group completed in Q1/11 and Tidermans and Stavdal completed in Q2/11. Acquisitions in Q1/2013 include Lambertsson and Kranpunkten completed in February 2013 and Russia joint venture completed in March 2013. Acquisitions in Q2/14 include OptiRent Oy and C/S RaumCenter and in Q1/15 acquisition of Vuokra-Pekat Oy in Finland and assets of Visby Hyrmaskiner AB in Sweden.

Highlights

18,6 52,6 38,1 37,8 24,3 40,8 33,5 25,6 15,0 22,4 31,9 31,2 27,3 41,7 45,4 33,3 33,0 46,1 46,8 72,7 41,6

• 0,3

1,5 0,0 0,0 0,8 0,0 31,2

• 0,8
• 0,8
• 0,6

0,0 11,3

• 0,3

0,4 8,5

• 0,1

91,3 94,2 37,8 39,2 24,3 40,8 34,4 25,6 46,2 21,6 31,1 30,7 27,3 53,1 45,1 33,6 41,5

• 10%

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

• 20

20 40 60 80 100 120 140 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Gross Capital Expenditure to Quarterly sales (%) Gross Capital Expenditure (EUR m)

CapEx CapEx, acquisitions Gross CapEx to sales

SLIDE 38

463 430 420 389 375 392 388 347 365 428 402 365 375 414 415 385 412 420 407 124,2 % 91,8 % 88,4 % 78,7 % 77,4 % 79,8 % 74,3 % 65,1 % 69,7 % 92,4 % 82,9 % 72,9 % 76,3 % 89,0 % 85,6 % 84,7 % 92,9 % 91,2 % 87,3 % 0% 20% 40% 60% 80% 100% 120% 140% 300 600 900 1 200 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Gearing % Net interest-bearing liabilities (EUR m)

Net interest-bearing liabilities Gearing %

38

Strong capital structure

• At the end of Q3/15, net

interest-bearing debt EUR 407.1m (415.2m)

• In Q3/15, gearing improving

from H1 levels. Gearing at 87.3% (85.6%)

− Gearing positively impacted by strong cash flow

• Gearing meeting the

financial target level of < 100%

Group financial target: Gearing < 100%

Highlights