PRESENTATION 2016 (UPDATED) SHAPE & SHARE STRONG RENTAL - - PowerPoint PPT Presentation
CRAMO GROUP PRESENTATION 2016 (UPDATED) SHAPE & SHARE STRONG RENTAL POSITION #2 #1 #2 Finland Russia Norway in Europe in the Nordics (MS) Estonia in Europe Sweden 300 14 324 Lithuania Denmark countries depots depots
Russia Czech Rep. Austria Hungary Ukraine Norway Finland Sweden Lithuania Slovakia Estonia Germany Poland Denmark
in Europe Cramo Fortrent
in the Nordics (MS)
depots
countries
230,000
rental units
150,000
customers
depots
in Europe
▪ Sales 712 MEUR (+6.6%) ▪ EBITA 111 MEUR (+30.6%) ▪ Listed on the Helsinki Stock Exchange since 1988, midcap ▪ 2,550, average 2016 (+2.6%)
Key financials Depot network Personnel Fleet
▪ More than 230.000 items ▪ Cramo is a rental solutions provider in machinery, equipment and modular space
What
▪ Construction industry ▪ Other industry ▪ Public sector ▪ Household,
For whom
▪ 300 depots ▪ 14 countries
▪ Cramo is one of the largest equipment rental service companies in Europe, with
111 million. ▪ The company operates under the Cramo brand in Nordic and Baltic countries, Germany, Austria, Hungary, Poland, the Czech Republic and Slovakia. In Russia and Ukraine under the brand of Fortrent (50% owned JV). The Modular Space business is marketed under the sub-brand Cramo Adapteo. ▪ Cramo is the #1 player in both construction and non-construction modular space in the Nordic countries. ▪ Cramo is also #2 in the Equipment rental segment in Europe and #1-3 in all markets of operation. ▪ In addition to strong market position and brand, Cramo’s key strength is extensive rental concept combined with flexible business model and operational efficiency. ▪ Cramo's 2,500 employees serve over 150,000 customers.
Finland 18% Sweden 49% Norway 10% Denmark 5% Central Europe 11% Easter Europe 7%
EUR 680 million
EQUIPMENT RENTAL
▪ Organic sales growth > market ▪ ROCE > 14.5%
MODULAR SPACE
▪ Double digit organic sales growth ▪ ROCE > 12.5%
GROUP
▪ Net Debt / EBITDA < 3x ▪ ROE > 15 % ▪ DIVIDEND PAYOUT RATION ~40 %
* Financial targets: on average during 2017- 2020 * ROCE = EBIT / capital employed (average)
Finland Lithuania Estonia Poland
Net sales
(mEUR)
EBITA
(margin-%)
ROCE
139 22 12%
(16%)
ER Finland and Eastern Europe
Czech Rep. Austria Hungary Slovakia Germany
Net sales
(mEUR)
EBITA
(margin-%)
ROCE
79 4 4%
(5%)
ER Central Europe
Czech Rep. Austria Hungary Norway Finland Sweden Lithuania Slovakia Estonia Germany Poland Denmark
Net sales
(mEUR)
EBITA
(margin-%)
ROCE
118 31 11%
(26%)
Modular Space
Norway Sweden
Net sales
(mEUR)
EBITA
(margin-%)
ROCE
379 65 17%
(17%)
ER Scandinavia
EQUIPMENT RENTAL MODULAR SPACE
Tools 27 % Construction Equipment 10% Access Equipment 16 % Modular Space 15 % Site huts 10% Rental-related services and other 20%
Access equipment (14,000) Construction equipment (6,100) Tools (158,000) Modular space (22,000) Site huts (32,000)
Construction industry 55% Other industries 23% Public sector 16% Households 2% Other 4%
More than 150,000 customers
More than 150,000 customers
OUR MISSION Create great days at work and room for great days
VALUE ADDED
SHARED RESOURCES SIMPLIFIED
OUR PURPOSE Driving the sharing economy OUR STRATEGY Shape and Share
People and performance Game-changing offerings Stretch and scale up business models Capture potential in our markets
FOCUS AREAS
Enable people to perform Shape the future Modular space Secure resources & German market Equipment rental Offerings & delivery platform Operational excellence
VALUES Credibility Creativity Commitment
Purpose
Why do we exist?
Vision
What do we want to be?
Mission
What do we want to accomplish?
Strategy
Our plan to reach vision, mission and purpose
Focus areas
How we drive our strategy
Values
Our common platform and foundation
We will capture the potential in our markets
achieve top performance
core business models
in chosen European markets
in sharing resources We share
We shape our
Align
Implementing common processes and tools Living the Cramo Story Operational efficiency
Optimize
Shaping the business structure and model Enhancing the performance culture Creating a digital concept
Growth
Building a new footprint in chosen markets Targeting organic growth Evaluating potential acquisitions target companies
Enable people to perform Stretch business models Game-changing
Secure resources in Modular Space Capture potential in Germany
More than 150,000 customers
Develop
People to Perform
Roll-out
Cramo Care
Drive
Cramo Story
Root
Performance Culture
Outsourcing - Increasing rental penetration Growth in rental- related services Switch from manpower to machine Growth in renovation construction in mature construction markets
MEGATRENDS
Migration Urbanisation Ageing Globalisation Digitalisation Sustainability Environmental and climate awareness Increased energy efficiency requirements Accelerating technological development Global and local demographic changes More stringent environmental laws and international agreements to mitigate climate change SOCIETY PUBLIC SECTOR CONSTRUCTION OTHER INDUSTRIES Growth in new services and solutions Growth of rental and modular space in new sectors Increasing rental penetration,
Internet of things, intelligent life-cycle follow-up Multichannel connectivity with customers
EQUIPMENT RENTAL DRIVERS MODULAR SPACE GROWTH DRIVERS
Economic benefits, change in mindset Greater preference for total solutions Need to improve productivity Quality problems (mold and moisture) in construction Ageing of buildings Dynamic, changing environment creates demand Site-specific space needs during renovation periods Fluctuating space needs: daycares, schools, accommodation End users increasingly require permanent-like quality Need for energy-efficient solutions
More than 150,000 customers
The fleet is becoming more digital Innovations & New Business Director Tomi Sundberg Cramo Innovation Race ”Smart” tools Digital Transformation Team The Innovation Team
Vision
Digital change leaders
Shapers, not followers!
Mission
Easy accessible, always open channels that adds value
Easy to find products Detailed product data Accurate availability information Easy to make transactions Efficient portal for account and rental management Easy access
STRATEGIC DRIVERS
economy
for more sustainable
efficiency
environment
and more stringent ethics CUSTOMER CARE
ENVIRONMENTAL CARE
footprint
EMPLOYEE CARE
SOCIAL CARE
VALUE ADDED
employees
COMMITMENT AND PRINCIPLES
Code of Conduct and Business Ethics Supplier Code of Conduct
UN Global Compact ISO
CUSTOMER CARE
suppliers EMPLOYEE CARE
ENVIRONMENTAL CARE
footprint
SOCIAL CARE
SUSTAINABILITY Growth Risk management Return on capital
WE ARE ALWAYS ON TIME
We understand your needs and timetables so well that every delay is too much. One minute late or one hose short, we’ll take responsibility – just to keep our service standards at least as high as your expectations.
OUR EQUIPMENT NEVER FAILS
High-quality equipment is the very core of our business. When equipment needs to be fixed or replaced, we’ll do it faster than you could imagine.
WE ARE ALWAYS HELPFUL
Every Cramo country has its own ombudsman. The ombudsman is a neutral authority who is willing and able to resolve and causes of dissatisfaction. Their job is to make our customers happy and help us to improve.
Always nearby A passion to serve Reliable delivery Rental
every possible need Committed to development An easier, more efficient day High quality and safety
A wide range of rental-related SERVICES
ranging from different site services, such as proactive site monitoring, construction site logistics, dust-control and weather-sheltering, to safety-related services, equipment and training.
Tailor-made total RENTAL SOLUTIONS for more efficient, safe and environmentally sound construction projects. MODULAR SPACE SOLUTIONS matching the standards of permanent buildings
from classrooms and daycare facilities to high-tech offices and accommodation. Operating in 8 countries
SITE HUTS
adaptable for various purposes and capacity needs.
COMPREHENSIVE RANGE OF TOOLS
and complete package solutions in building equipment.
Modern, comprehensive fleet of CONSTRUCTION EQUIPMENT
for any type of assignments, from major road projects to small-scale jobs.
ACCESS EQUIPMENT
with comprehensive safety solutions for working at heights.
A RANGE OF RENTAL-RELATED SERVICES
Including transport, assembly, disassembly,
transport off-site.
More than 230,000 rental items Over 150,000 customers INDUSTRIAL PROJECTS
including infrastructure,
Align,
grow Leading position
divisions
Enable people to perform
CRAMO ONLINE
www.cramo.com www.cramogroup.com https://ecrent.cramo.com
SOCIAL MEDIA
www.facebook.com/cramogroup www.twitter.com/cramogroup www.linkedin.com/company/cramo-group
APPENDIX
Business overview Sustainability Why rent from Cramo Depot network PRODUCTS & SERVICES Rental equipment Modular Space
“ As part of the sharing economy, our rental solutions provide safe, resource-efficient alternatives to our customers, generating value to all our stakeholders and to society. Our ambition is to take a lead in advancing sustainability in the rental industry, exceeding the expectations and requirement of
Leif Gustafsson President and CEO
http://bit.ly/2lDFetJ
Cramo maintains a high level with respect to quality, environment and working environment matters, both internally and in cooperation with customers. We not only provide a top range of quality products, but can also help toward minimizing environmental impact and creating a better working environment at our customer’s work sites. 100% of our operations shall be covered by these certificates by the end of 2020.
x x
Environmental and quality certified operations in Cramo Sweden Norway Finland Germany ISO 9001 (quality)
x x x x
ISO 14001 (environment)
x x x x
OHSAS 18001 (work environment)
x x x
▪ Expert depot personnel who give advice on machine selection ▪ The right machine in the right place at the right time ▪ Testing of machinery and equipment prior to delivery ▪ Calibrated control and measurement instruments ▪ Modern inventory of machinery with the latest technology ▪ Regular servicing of the machinery ▪ Machinery that has passed inspection ▪ Rental insurance that provides extra security ▪ Business support that presents the current rental rate ▪ Training of Cramo’s employees and customers ▪ Customer surveys that capture customer views ▪ Reporting system for discrepancies/improvements
Cramo’s work with environmental issues differ between markets and are furthest advanced in the Nordic countries, where this work has become an evermore important argument for customers choosing rental solutions from Cramo. Measurement of energy consumption between standard site hut (purple) with Cramo energy establishment (blue). It is possible to make an energy saving of 35% with Cramo energy establishment.
Comparison kWh/m2 (March 2008)
▪ Advice/tips for customers on environmental work ▪ Machinery that meets environmental demands ▪ Documented environmental performance of machinery ▪ Help with calculating emissions ▪ Environmentally-adapted oils and fuels ▪ Products for environmentally-safe handling ▪ Help with waste disposal in customer projects ▪ Site hut and module set-up with low energy consumption ▪ Extensive environmental work at Cramo’s rental depots: ▪ Environmental assessment of chemicals and safe handling ▪ Environmental assessment of the carriers and suppliers ▪ Energy effectiveness ▪ Waste management
▪ Information about work requirements ▪ Machinery that reduces strain on users ▪ Training in aerial equipment, scaffolding and forklift trucks for our customers ▪ Machinery that reduces the risk of vibration injuries ▪ Fall protection to reduce the risk of accidents ▪ Equipment that contributes to cleaner air ▪ Sale of personal safety equipment ▪ Site huts and modules providing a good workplace environment ▪ Help with solutions toward improving the work environment ▪ Safety instruction for certain machines
Cramo’s work with work environmental issues differ between markets and are furthest advanced in the Nordic countries, where this work has become an evermore important argument for customers choosing rental solutions from Cramo.
The widest assortment Rental objects for every possible need. Capacity to deliver 230,000 modern pieces of equipment of high quality ensure a high degree of delivery. Always nearby 300 strategically positioned depots and sales offices. A long history and strong tradition Access to the collective competences from rental operations in 14 countries. Forerunner in the industry ISO-certified in the Nordic area. Committed to development We strive to develop new creative solutions, based on our extensive customer experiences.
A wide network of about 300 Cramo depots offering a wide range of equipment Our standard depots offer:
▪ All standard equipment ▪ Light construction equipment and smaller lifts ▪ Merchandise in the Cramo depot store ▪ The best customer service and efficient logistics ▪ Reliable equipment availability and flexible ▪ Delivery conditions ▪ Efficient logistics through a hub-structure
1 2 3
Compaction equipment, modular space solutions and earth moving equipment Material handling equipment, access equipment and safety products Tools for drilling and grinding, dust collectors and bolt driving
▪ Ground vibrators ▪ Concrete processing machines ▪ Electrical equipment ▪ Compressors ▪ Drying and heating equipment ▪ Pumps ▪ Screw/nail tools, chipping and hewing hammers ▪ Cutting machines, saws and welding equipment ▪ Grinding, milling and drilling machines ▪ Bending machines ▪ Measuring instruments ▪ Cleaning equipment
▪ Minicranes ▪ Telescopic handlers ▪ Vertical mast lifts ▪ Scissor lifts ▪ Articulated boom lifts ▪ Telescopic boom lifts ▪ Crawler-mounted lifts ▪ Trailer-mounted lifts ▪ Truck-mounted lifts ▪ Building hoists ▪ Scaffolding ▪ Work platforms ▪ Forklift trucks ▪ Warehouse trucks
▪ Dumpers ▪ Rollers ▪ Excavators ▪ Skidsteer loaders ▪ Compact loaders ▪ Wheel loaders ▪ Compressors ▪ Generators ▪ Drilling rigs ▪ Demolition robots
PRODUCTS ▪ Site huts ▪ Trailers ▪ Toilets ▪ Containers BUILDING SITE PREMISES FOR ▪ Accommodation ▪ Project offices ▪ Changing rooms, hygiene ▪ Storage
APPLICATIONS
Merianschule in Frankfurt was getting old and non-functional for students and staff. “We are very happy with the quality of the school building. We didn’t really expect
The low reverberation in the rooms are very positive.” Brigitte Schultz, Head of School
▪ Innovative heating concept ▪ Infra-red heating panels saving energy ▪ Meets all modern standards of fie protection ▪ Escape routes are easily accessible ▪ Acoustic panels ▪ 3.510 sqm school container-type building ▪ Special needs for access, light and sound
SERVICES AND SOLUTIONS SUPPORTING OUR CUSTOMER’S BUSINESS
Cramo rental insurance
All services that might be needed during the Modular Space life cycle
Modular Space Services Transportation
Complete transportation service for equipment Coaching and training to obtain new knowledge about new products and technologies
External training
All services related to temporary electricity
Temporary electricity
Protection against unexpected costs for unforeseen events
Cramo Rental Insurance Offered on all Cramo markets
Experienced staff for rented equipment 24/7 access to technical expertise from Cramo Extensive services for heating buildings or construction sites Planning and sourcing for smooth operations Extensive services for humidity damage prevention and repair Full range of services for construction sites Repair and maintenance service for equipment Extensive services for erection and dismounting of scaffolding Extensive services for managing air quality on the construction site or in the workplace Recommendations and instructions for how to operate based on QSE Trading services for
Operators 24/7 technical support Construction site services Repair and maintenance Scaffolding & rack/pinion hoist services Heating services
Moisture damage and humidity control services
Construction site logistics Air quality management Trading services QSE servcies Other services available on some Cramo markets
Services related to assembly, disassembly and usage of Modular Space All services related to modular space from one provider. Components: ▪ Dimensioning of premises ▪ Drawings and documents ▪ Site preparations and foundation work ▪ Transport and logistics ▪ Assembly and disassembly ▪ Electricity, IT, water and sewage ▪ Furniture, equipment and installations
Transportation of equipment rented from Cramo or your own. No need to set aside resources for transportation. No need for your own fleet. Components: ▪ Basic, normal or express delivery ▪ Efficient allocation of rental equipment ▪ Logistics centre for services on customer’s construction site
Keeps you updated on new products technologies and regulations. Examples on available courses ▪ Safety at the construction site ▪ Operation of forklifts and dumpers ▪ Assembly of scaffolding ▪ Safe usage of access equipment ▪ Dust-free workplace
“We offer Cramo’s traning to all foremen in the companies whose employees’ jobs include working at heights at our worksite. Training is offered both to contractors and to our own employees”. Ilkka Karvonen, Worksite safety manager
▪ Fall protection ▪ How to use collective fall protection ▪ How to use personal fall protection ▪ How to use a harness ▪ Scaffolding, barriers and handrails ▪ 2,500 employees working at the site ▪ Training sessions are held on regular basis
All services related to temporary electricity from one provider. Offering safe planning and installation
Components ▪ Mapping customer requirements ▪ Subscription of electricity connection ▪ Complete CAD-based electricity plan ▪ Lighting plans and services ▪ Electricity installation and connections ▪ 24/7 service ▪ Power calculations ▪ Electricity usage monitoring
▪ Extra security when renting equipment from Cramo. ▪ Offering protection against unexpected costs for unforeseen events such as break-ins, fire, water damage or equipment breakdowns.
Clean House
Solutions for managing air quality
environments Solutions for heating and humidity control on construction sites
Cramo Safety
Safety solutions for construction sites
Cramo Smart Energy
Solutions for saving energy with smart, efficient assembly of Modular Space
Cramo Security
Security and access control solutions for construction sites
Crew Camp Solutions
Total accommodation solutions
Dry Construction
Comprehensive safety solutions for construction sites. Fewer accidents and less risky situations
Services and products: ▪ Training via the Cramo School ▪ Personal fall equipment ▪ Temporary edge protection ▪ Mounting and dismounting of safety equipment
Solution for managing buildings affected by water
More comfortable working conditions and improved air quality. Products and services: ▪ Planning and sizing of dust control ▪ Installations ▪ Dust measurements ▪ Seal measurements ▪ Indoor air quality measurements ▪ Other indoor air services
Saving energy with up to 50% with smart, efficient assembly of modular space with insulation and low-energy lighting. Studies show that approximately 70% of the energy consumption at a construction site relates to the heating of site huts, and lighting equipment. Products and services: ▪ Exterior insulation between the huts ▪ Energy efficient site huts, C60 ▪ Low energy light fittings in exterior and interior ▪ Lighting ▪ Insulated storage containers ▪ Measuring and follow-up
▪ Combines training, products and counseling to avoid damage and/or delays due to weather conditions during the building process. ▪ A healthy climate at the construction site gives healthier workers and tenants. ▪ Cramo offers training and products such as weather protection, halls, heaters, dryers and dehumidifiers. And finally follow-up and documentation.
Total solutions for security and access control for construction sites. A healthy climate at the construction site gives healthier workers and tenants. Products and services: ▪ Smart identification card and access device (e.g. ID06) ▪ Gates and fences ▪ Cameras ▪ Security service (guards) ▪ Container safe storages ▪ Training (Cramo School)
Temporary accommodation and premises for longer projects. Especially for projects not located near populated areas. Accommodation customized based on customer needs with high living standards and premises close to the construction site. Products and services: ▪ Accommodation, offices, canteens and recreational facilities with modular space. ▪ Planning, assembly and disassembly.
Cramo Bonus
Loyalty program for regular customers giving bonus points,
products and services. A shop-in-shop concept that offers a selected range of consumables, accessories, spare parts, protection equipment to customers visiting the depots.
Cramo Shop Work Instructions
A service that gives customers information on safe, secure handling of tools and
Cramo Business Support
Web-based services such as monitoring orders, invoices and statistics.
General Customer Support
Consultation on site, electronic invoicing, call centre services etc.