Q4 2018 PRESENTATION 8 th February 2019 Leif Gustafsson, CEO Aku - - PowerPoint PPT Presentation

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Q4 2018 PRESENTATION 8 th February 2019 Leif Gustafsson, CEO Aku - - PowerPoint PPT Presentation

Feb 15, 2024 223 likes •548 views

Q4 2018 PRESENTATION 8 th February 2019 Leif Gustafsson, CEO Aku Rumpunen, CFO Philip Isell Lind af Hageby, EVP, Modular Space Q4 2018 HIGHLIGHTS Sales increased by 10.6% (13.8% in local currencies) to EUR 217.5 (196.7) million. NMG

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SLIDE 1

8th February 2019

Q4 2018 PRESENTATION

Leif Gustafsson, CEO Aku Rumpunen, CFO Philip Isell Lind af Hageby, EVP, Modular Space

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SLIDE 2

Q4 2018 HIGHLIGHTS

  • Sales increased by 10.6% (13.8% in local currencies) to

EUR 217.5 (196.7) million. NMG acquisition completed and consolidated since 31 Oct contributing EUR 12.8 million to sales growth.

  • Group comparable EBITA improved by 6.2% to EUR 34.4

million (32.4) supported by ER Central and ER Finland and Eastern Europe and Modular Space.

  • All ER segments contributed positively to organic sales

growth of 1.9%.

  • Modular Space organic rental sales grew by 13.5% and

EBITA improved by 28.8% vs LY.

  • The Board of Directors of Cramo has decided to pursue

towards spin-off of the Company’s Modular Space business to Cramo’s existing shareholders in the Nasdaq Stockholm latest in the third quarter of 2019

  • The Board of Directors proposes a dividend of EUR 0.90

per share

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SLIDE 3

Capturing full business potential Growth ▪ Increase opportunity to optimize

  • perational efficiency and create value

Competitive strength ▪ Increase competitiveness through specialization ▪ More focused management for separate companies Financial clarity ▪ Two clear investment options with different risk and growth profiles Creating conditions for greater shareholder value with two stand-alone companies that can grow stronger separately ▪ Cramo Board of Directors has decided to pursue towards separation of the Modular Space (Cramo Adapteo) business through a partial demerger ▪ The transaction and separate listing (Nasdaq Stockholm) of Cramo Adapteo is expected to take place latest in the third quarter of 2019 ▪ Execution of a partial demerger requires approvals by Cramo Board of Directors and general meeting of the shareholders

POTENTIAL FOR RELEASING SHAREHOLDER VALUE

Spin-off through a partial demerger 3

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SLIDE 4

▪ In a partial demerger, all assets and liabilities belonging to the Modular Space business would be transferred to a new company to be incorporated in the demerger ▪ Shareholdings in Cramo would remain unchanged as a result of the demerger ▪ Shares in the new Modular Space company would be issued as demerger consideration to Cramo’s shareholders in proportion to shareholdings in Cramo

SPIN-OFF THROUGH A PARTIAL DEMERGER

100 % Partial demerger (Modular Space assets and liabilities transferred to a new company) New shares in new Modular Space company as demerger consideration1) 100 %1)

1) The New Modular Space company may issue new shares to the sellers of the shares in Nordic Modular Group Holding AB, with which Cramo entered into an agreement in June 2018 concerning the option under certain conditions to reinvest purchase price receivables from said transaction into the Modular Space business.

Overview of structure

Cramo’s shareholders Cramo Plc New Modular Space company

4

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SLIDE 5

13.3 % 15.2 % 14.4 % 14.5 % 0% 5% 10% 15% 20% Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18

Comparable ROCE

Comparable ROCE Target 2017-20 3.5 % 4.0 % 10.2 % 7.8 % 6.1 % 5.4 % 3.7 % 2.3 % 0% 5% 10% 15% Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18

Organic** sales growth (y-o-y)

Organic sales growth (YTD) Market 2017* Market 2018* 9.5 % 9.3 % 14.2 % 15.7 % 15.0 % 14.6 % 10.0 % 0% 5% 10% 15% 20% Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18

Organic** rental sales growth (y-o-y)

Organic rental sales growth (YTD) Target 2017-20 12.6 % 11.4 % 9.1 % 8.8 % 12.5 % 0% 5% 10% 15% 20% Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18

Comparable ROCE

Comparable ROCE Target 2017-20

FINANCIAL TARGET REALISATION

EQUIPMENT RENTAL MODULAR SPACE

* Target to grow faster than market. Market growth according to ERA (European Rental Association) in the markets where Cramo is present. ** Organic sales growth excludes the impact of acquisitions, divestments and exchange rate changes and IFRS changes

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SALES GROWTH TARGETS REACHED IN BOTH BUSINESS DIVISIONS

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SLIDE 6

6

BUSINESS SEGMENTS

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SLIDE 7

103.7 101.9 100.1 20 40 60 80 100 120 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18

Sales (EUR million)

Sales

18.9 21.5 20.5 16.2 % 18.7 % 19.3 %

10% 12% 14% 16% 18% 20% 22% 24%

5 10 15 20 25 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18

Comparable ROCE Comparable EBITA (EUR million)

Comparable EBITA and ROCE

Comparable EBITA Comparable ROCE

101.9 100.1 0.0 0.0 2.9

  • 4.6

0.0 20 40 60 80 100 120

Q4/17 Acquisitions Divestments Organic growth FX-changes IFRS 15 impact Q4/18

EUR million

Sales Q4/17 vs Q4/18

  • In Sweden, fourth-quarter sales increased by 0.4% in local

currencies driven by Southern and Central regions

  • In Norway, sales developed positively supported by high

utilisation rates and several large projects

  • Full year profitability improved due to increased organic sales

and good cost control

  • According to Forecon, equipment rental market is expected to

grow by 1% in 2019 in Sweden. The Norway outlook is positive for 2019 driven particularly by civil engineering.

EQUIPMENT RENTAL: SCANDINAVIA

SOLID PERFORMANCE CONTINUED

  • 4.4%

Organic growth +2.9% vs LY

ER Scandinavia has operations in Sweden and Norway with capital employed of MEUR 379 at the end of Q4 2018.

  • 1.7%

All figures exclude IACs and are presented as comparable key figures Cramo changed the calculation method of ROCE’s capital employed component into 12 months average in Q4’2018.

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37.4 38.7 39.3 5 10 15 20 25 30 35 40 45 50 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18

Sales (EUR million)

Sales

7.1 7.0 7.3 11.6 % 13.1 % 11.4 % 0% 5% 10% 15% 20% 2 4 6 8 10 12 14 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18

Comparable ROCE Comparable EBITA (EUR million)

Comparable EBITA and ROCE

Comparable EBITA Comparable ROCE

38.7 39.3 0.0 0.0 0.7 0.0 0.0 5 10 15 20 25 30 35 40 45

Q4/17 AcquisitionsDivestments Organic growth FX-changes IFRS 15 impact Q4/18

EUR million

Sales Q4/17 vs Q4/18

EQUIPMENT RENTAL: FINLAND AND EASTERN EUROPE

SALES AND PROFITABILITY IMPROVED IN THE FOURTH QUARTER

+4.4% Organic growth 1.8% vs LY +1.7%

  • Organic sales increased by 1.8% in Q4. In Finland, sales were

close to last year level decreasing by 1.0%. This was offset by good sales development in segment’s other countries.

  • Profitability increased strongly in Poland, Estonia and Lithuania due

to higher sales and good cost control. In Finland profitability was below last year, but improved from previous quarter due to executed organisational restructuring.

  • Market outlook is mainly positive in all countries

ER Finland and Eastern Europe has operations in four countries with capital employed of MEUR 193 at the end of Q4 2018.

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All figures exclude IACs and are presented as comparable key figures Cramo changed the calculation method of ROCE’s capital employed component into 12 months average in Q4’2018.

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SLIDE 9

20.3 20.6 32.4 5 10 15 20 25 30 35 40 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18

Sales (EUR million)

Sales

1.6 1.3 2.5 4.1 % 4.7 % 5.7 %

  • 3%
  • 1%

1% 3% 5% 7%

  • 3
  • 2
  • 1

1 2 3 4 5 6 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18

Comparable ROCE Comparable EBITA (EUR million)

Comparable EBITA and ROCE

Comparable EBITA Comparable ROCE

20.6 32.4 9.9 0.0 2.0 0.0 0.0 5 10 15 20 25 30 35

Q4/17 Acquisitions Divestments Organic growth FX-changes IFRS 15 impact Q4/18

EUR million

Sales Q4/17 vs Q4/18

EQUIPMENT RENTAL: CENTRAL EUROPE

ORGANIC SALES GREW AND PROFITABILITY IMPROVED

Organic growth +9.6% vs LY

ER Central Europe has operations in five countries with capital employed of MEUR 153 at the end of Q4 2018.

  • Strong sales growth supported by KBS Infra acquisition (EUR 9.9 million

impact) supported by all segment countries, including Germany, where trading sales were on a high level in the fourth quarter.

  • Comparable EBITA increased to EUR 2.5 (1.3) million or 7.6% (6.3%) of
  • sales. The fourth quarter profitability was positively affected by the KBS

Infra acquisition’s contingent liability remeasurement of EUR 1.1 million.

  • The underlying performance of Germany has not reached our targets

and improvement actions will be continued

+91.5% +57.7%

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Organic rental growth +0.5% vs LY All figures exclude IACs and are presented as comparable key figures Cramo changed the calculation method of ROCE’s capital employed component into 12 months average in Q4’2018.

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SLIDE 10

8.2 7.4 9.6 11.4 % 9.1 % 8.8 % 5% 7% 9% 11% 13% 15% 17% 19% 2 4 6 8 10 12 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18

Comparable ROCE Comparable EBITA (EUR million)

Comparable EBITA and ROCE

Comparable EBITA Comparable ROCE 20.0 22.1 30.4 11.5 13.7 15.9 31.6 35.8 46.3 5 10 15 20 25 30 35 40 45 50 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18

Sales (EUR million)

Sales

Other sales Rental sales Sales

35.8 46.3 12.8 0.0

  • 1.4
  • 1.0

0.1 10 20 30 40 50 60

Q4/17 Acquisitions Divestments Organic growth FX-changes IFRS 15 impact Q4/18

EUR million

Sales Q4/17 vs Q4/18

  • Driven by NMG acquisition, Q4 sales increased by 29.3%

(32.9% in local currencies). Rental sales grew by 37.3% (40.8% in local currencies). Organic rental sales growth was 13.5%.

  • Fourth quarter EBITA increased by 28.8% and totalled EUR

9.6 (7.4) million. Improvement was particularly driven by NMG, which increased EBITA by EUR 2.1 million.

  • Segment profitability was diluted by cost provisions of EUR

2.1 million relating to certain integration and restructuring measures.

MODULAR SPACE

RENTAL SALES GROWTH CONTINUED STRONG

Modular Space has operations in seven countries with capital employed of MEUR 623 at the end of Q4 2018.

+28.8% Organic growth

  • 4.0% vs LY

+29.3% +29.3%

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Organic rental sales growth +13.5% vs LY All figures exclude IACs and are presented as comparable key figures Cramo changed the calculation method of ROCE’s capital employed component into 12 months average in Q4’2018.

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SLIDE 11

LEADING MODULAR SPACE SOLUTION PROVIDER

MODULAR SPACE BUSINESS (ADAPTEO) IN BRIEF*

OFFICE NETWORK

KEY FINANCIALS FY2018 (illustrative)*

Net sales (M€)* EBITA (M€) and EBITA margin*

222* 52* (23.4%)

OFFICE NETWORK PEOPLE FLEET

Sales office Hub/Warehouse Production (own)

ADAPTEO PRESENCE

Day care Accommodation Office School Events/ Exhibitions

CUSTOMER SEGMENTS

OFFICE NETWORK PERSONNEL ~400 employees RENTAL MODULES 23 sales offices and hubs and two (2) factories across seven (7) countries ~31.000 modules

OFFICE NETWORK PEOPLE FLEET BUSINESS UNITS

School

* Not representative of stand-alone Adapteo. Calculated based on Cramo’s modular space segment information where NMG is included for two months Nov-Dec 2018 and added with illustrative NMG impact for ten months Jan-Oct 2018 calculated with Cramo’s accounting principles including the impact of purchase price allocation. Figures are unaudited. Production (outsourced)

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SLIDE 12

MODULAR SPACE RENTAL OPERATIONS MODEL EXPLAINED

COMPLETE SOLUTION PROVIDER ACROSS ALL PHASES IN THE MODULAR SPACE RENTAL CYCLE

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RENTAL MARKET OVERVIEW AND POSITIONING

CRAMO ADAPTEO WELL POSITIONED TO CAPTURE MARKET SHARES IN AN ATTRACTIVE AND RENTAL MARKET

MARKET SIZE 2018 ~125 M€ ~110 M€ ~290 M€ ~145 M€ ~750 M€ MARKET CAGR 2017-2023 ≥10% 5-10% 5-10% ≥10% 5-10% OVERALL MARKET ATTRACTIVENESS OPCO MARKET POSITION 2 3 1 2 12* TOP 3 COMPETITIVE LANDSCAPE

1. GSV 2. Adapteo 3. Jytas 1. Malthus-Uniteam 2. Expandia 3. Adapteo 1. Adapteo 2. Expandia 3. Indus 1. Parmaco 2. Adapteo 3. Ramirent 1. Algeco 2. Kleusberg 3. FAGSI High attractiveness Low attractiveness

The rental modular space market in current Adapteo markets is worth ~1.4 bn€ and is forecasted to grow by approximately 9% p.a. reaching ~2.2 bn€ in 2023

Source: Market studies

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SOLUTION OFFERING PORTFOLIO

BROAD PREMIUM SOLUTION OFFERING FULFILLING ACROSS THE BOARD CUSTOMER SEGMENT NEEDS

QUALITY TIME Short term Long term Sales Event/exhibitions Special customized Premium wooden Standard wooden Steel

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NORDIC MODULAR GROUP ACQUISITION RATIONALE

STRENGHTENING OUR POSITION IN THE NORDIC MODULAR SPACE INDUSTRY

NewCo presence

Strengthen our modular space market position in the Nordics with adequate size and cost efficiency to attract top-tier investors Penetrate the short-term/long-term rental business with optimized and differentiated solutions towards targeted customer segments Establish a strong platform with capacity to grow the rental and sales business in Central Europe, both organically and through acquisitions Form a versatile modular space group with inhouse R&D, design and manufacturing to expand the semi-permanent sales business Increase modular space concept awareness and business transparency driving long-term value creation – Be a true shaper of the industry

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NEW MODULAR SPACE PROJECTS IN Q4/18

Skanska, Hämeenlinna, Finland

▪ Customer: Skanska Big Room ▪ Rental period: 60 months ▪ Solution: Office ▪ Number of modules: 12 units ▪ Module type: Temporent NOVA ▪ Area: 672 sqm in two floors ▪ Other: First NOVA project in Finland

Germany

Cramo Adapteo is a leading modular space solution provider with a well established presence in seven countries serving customers in both the public and private sector with school, daycare, office, event and accommodation solutions.

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Hålabäckskolan, Kungsbacka, Sweden ▪ Customer: Kungsbacka kommun ▪ Rental period: 21 months ▪ Solution: School ▪ Number of modules: 91 units ▪ Module type: C90 ▪ Area: 2,975 sqm in two floors ▪ Other: Added fire proof solution – better space usage. Natural sciences class rooms. 2 1

Denmark Germany Slovakia Lithuania Estonia Norway Sweden Finland

2 1

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SLIDE 17

GROUP PERFORMANCE Q4 2018

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187 155 179 185 193 163 178 192 197 175 189 198 218

  • 2%

0% 2% 4% 6% 8% 10% 12% 50 100 150 200 250 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18

Sales growth (%, y-o-y) Sales (EUR million)

668 676 694 707 712 720 719 726 730 742 753 759 780

0% 1% 2% 3% 4% 5% 6% 7% 8% 600 620 640 660 680 700 720 740 760 780 800 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18

R12M sales growth (%, y-o-y) R12M sales (EUR million)

SALES DEVELOPMENT

ORGANIC SALES GROWTH OF 1.9% IN Q4

* in local currencies ** organic sales growth in local currencies

Quarters Rolling 12 months

R12M Q4/18 vs. R12M Q4/17: +6.9% Q4/18 vs. Q4/17: +10.6% (+13.8%*) (+1.9%**)

18

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SLIDE 19

196.7 217.5 22.7 0.0 3.7

  • 5.6

0.1 50 100 150 200 250

Q4/17 Acquisitions Divestments Organic growth FX-changes IFRS 15 impact Q4/18

EUR million

Sales Q4/17 vs Q4/18

GROUP Q4 SALES GROWTH VS LY

ORGANIC SALES GROWTH 1.9% VS REPORTED SALES GROWTH 10.6%

Organic sales growth +1.9% vs LY

▪ Equipment Rental +3.5%

▪ Scandinavia +2.9% ▪ Finland and Eastern Europe +1.8% ▪ Central Europe +9.6%

▪ Modular Space -4.0%

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NMG increasing sales by +12.8MEUR, KBS by +9.9MEUR

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SLIDE 20

729.5 779.8 45.4

  • 16.3

42.2

  • 24.1

2.9 100 200 300 400 500 600 700 800 900

Q1-Q4/17 Acquisitions Divestments Organic growth FX-changes IFRS 15 impact Q1-Q4/18

EUR million

Sales Q1-Q4/17 vs Q1-Q4/18

GROUP FULL YEAR SALES GROWTH VS LY

ORGANIC SALES GROWTH 6.1% VS REPORTED SALES GROWTH 6.9%

Organic sales growth +6.1% vs LY

▪ Equipment Rental +5.4%

▪ Scandinavia +7.0% ▪ Finland and Eastern Europe +3.4% ▪ Central Europe +2.2%

▪ Modular Space +10.1%

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NMG increasing sales by +12.8MEUR, KBS by +31.6MEUR

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SLIDE 21

27.0 13.0 26.6 38.9 32.6 19.7 27.8 40.2 32.4 23.1 31.0 41.6 34.4 14.4 % 16.9 % 16.5 % 15.8 %

5% 7% 9% 11% 13% 15% 17% 19% 21% 23% 5 10 15 20 25 30 35 40 45 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18

EBITA margin (%, line graph) EBITA (EUR million)

87 90 98 105 111 118 119 120 120 123 127 128 130 13.0 % 15.6 % 16.5 % 16.7 %

5% 7% 9% 11% 13% 15% 17% 19% 20 40 60 80 100 120 140 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18

R12M EBITA margin (%, line graph) R12M EBITA (EUR million)

COMPARABLE EBITA DEVELOPMENT

Y-O-Y INCREASE SUPPORTED BY MODULAR SPACE, ER CENTRAL AND ER EAST

Quarters Rolling 12 months

Q4/18 vs. Q4/17: +6.2% R12M Q4/18 vs. R12M Q4/17: +8.3%

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239.4 240.4 259.4 65.5 67.9 72.6 59.8 64.2 65.7 59.3 56.9 62.0 54.8 51.4 59.1 33.6 % 33.0 % 33.3 % 34.0 % 34.5 % 33.4 % 32.3 % 33.5 % 33.2 % 33.1 % 31.9 % 32.8 % 35.3 % 31.5 % 33.7 % 50 100 150 200 250 300 0.0 % 5.0 % 10.0 % 15.0 % 20.0 % 25.0 % 30.0 % 35.0 % 40.0 % 2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018 Jan-Dec Q4 Q3 Q2 Q1

Direct cost (EUR million) Direct cost ratio

Direct costs (right axis) Direct cost ratio (left axis) 272.9 276.3 289.0 73.8 72.8 82.3 63.6 63.6 65.3 70.4 70.7 72.1 65.1 69.2 69.3 38.3 % 37.9 % 37.1 % 38.2 % 37.0 % 37.8 % 34.4 % 33.1 % 33.0 % 39.3 % 39.7 % 38.1 % 41.9 % 42.5 % 39.5 % 50 100 150 200 250 300 350 400 0.0 % 5.0 % 10.0 % 15.0 % 20.0 % 25.0 % 30.0 % 35.0 % 40.0 % 45.0 % 50.0 % 2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018 Jan-Dec Q4 Q3 Q2 Q1

Indirect cost (EUR million) Indirect cost ratio

Indirect costs (right axis) Indirect cost ratio (left axis)

240.4 259.4 67.9 72.6 64.2 65.7 56.9 62.0 51.4 59.1 33.0 % 33.3 % 34.5 % 33.4 % 33.5 % 33.2 % 31.9 % 32.8 % 31.5 % 33.7 % 50 100 150 200 250 300 350 400 0.0 % 5.0 % 10.0 % 15.0 % 20.0 % 25.0 % 30.0 % 35.0 % 40.0 % 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 Jan-Dec Q4 Q3 Q2 Q1 Direct cost (EUR million) Direct cost ratio Direct costs (right axis) Direct cost ratio (left axis) 276.3 289.0 72.8 82.3 63.6 65.3 70.7 72.1 69.2 69.3 37.9 % 37.1 % 37.0 % 37.8 % 33.1 % 33.0 % 39.7 % 38.1 % 42.5 % 39.5 % 50 100 150 200 250 300 350 400 0.0 % 5.0 % 10.0 % 15.0 % 20.0 % 25.0 % 30.0 % 35.0 % 40.0 % 45.0 % 50.0 % 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 Jan-Dec Q4 Q3 Q2 Q1 Indirect cost (EUR million) Indirect cost ratio Indirect costs (right axis) Indirect cost ratio (left axis)

* Comparison before IACs 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

DEVELOPMENT IN COST BASE*

22

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SLIDE 23

32.4 34.4 32.4

  • 0.9

0.3 1.2 2.1

  • 0.7

0.3 2.1

  • 0.4

5 10 15 20 25 30 35 40 Q4/2017 ER Scandinavia ER Eastern Europe ER Central Europe MS Non-allocated Q4/2018 ER MS Non-allocated Q4/2017 Development against LY Development against LY Comparable EBITA (EUR million)

COMPARABLE EBITA BRIDGE Q4/18 VS Q4/17

16.5% of sales 15.8% of sales

23

16.5% of sales

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SLIDE 24

120.0 130.1 120.0 0.6

  • 2.7

4.5 7.9

  • 0.3

2.2 7.9

  • 0.1

20 40 60 80 100 120 140 Q1-Q4/2017 ER Scandinavia ER Eastern Europe ER Central Europe MS Non-allocated Q1-Q4/2018 ER MS Non-allocated Q1-Q4/2017 Development against LY Development against LY Comparable EBITA (EUR million)

COMPARABLE EBITA BRIDGE Q1-Q4/18 VS Q1-Q4/17

16.5% of sales 16.7% of sales

24

16.5% of sales

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SLIDE 25

0.40 0.16 0.41 0.64 0.51 0.28 0.42 0.66 0.51 0.35 0.48 0.71 0.50 0.00 0.50 1.00 1.50 2.00 2.50 0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 1.80 2.00 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18

EPS R12M (EUR, line graph) Quarterly EPS (EUR, bar graph)

COMPARABLE EPS PERFORMANCE

1.87 2.05 1.70

25

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SLIDE 26

73.5 23.6 39.3 51.2 58.2 42.3 27.1 47.5 69.7 20.8 53.2 49.9 71.6

  • 130
  • 80
  • 30

20 70

  • 130
  • 80
  • 30

20 70 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18

Cash flow after investments(EUR million, line graph) Operating cash flow (EUR million, bar graph)

OPERATING CASH FLOW AND CASH FLOW AFTER INVESTMENTS

Q4 OPERATING CASH FLOW INCREASED SLIGHTLY FROM LY

19.4 16.8

  • 119.7

Acquisition of shares

  • f Just Pavillion

(-8.1 MEUR)

26

37.0

KBS acquisition 17.8 MEUR Positive impact of divestments (28 MEUR) NMG acquisition

  • 140.3 MEUR
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SLIDE 27

14.9 % 15.4 % 15.7 % 15.0 % 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18

Comparable ROE%

Comparable ROE Target >15.0% 2017-20 1.77 1.65 2.88 3.00 2.63 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18

Net debt / EBITDA

Net debt / EBITDA pro-forma* Net debt / EBITDA Target < 3.00 2017-20

COMPARABLE ROE AND NET DEBT TO EBITDA

27

GROUP LEVEL TARGETS REACHED IN 2018

* Pro-forma EBITDA contains KBS Jan-Feb pro-forma EBITDA and NMG Jan-Oct pro-forma EBITDA

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SLIDE 28

DIVIDEND DEVELOPMENT 2014-2018

THE BOARD OF DIRECTORS PROPOSES A DIVIDEND OF 0.90 (0.85) PER SHARE

0.55 0.65 0.75 0.85 0.90 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00 2014 2015 2016 2017 2018

Dividend (EUR / share)

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SLIDE 29

CONCLUSION AND OUTLOOK 2018

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SLIDE 30

CONCLUSIONS

SHAPE AND SHARE

  • Q4 organic sales growth of 1.9% supported by both

business divisions

  • Comparable EBITA grew by 6.2% driven by Modular Space,

ER Finland and Eastern Europe and ER Central Europe performance

  • Performance improvement actions in Modular Space are

showing results – EBITA grew by 28.8% in the fourth

  • quarter. NMG effect was EUR 2.1 million.
  • ER Germany did not meet our targets and performance

actions will continue

  • Cramo completed the acquisition of Nordic Modular Group

Holding AB on 31 October 2018

  • The Board of Directors of Cramo have decided to pursue

towards spin-off of the Company’s Modular Space business to its existing shareholders. Spin-off through partial demerger is expected to take place latest in the third quarter

  • f 2019.

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SLIDE 31

OUTLOOK

Equipment Rental

  • The 2019 rental market outlook remains still positive

despite increased economic uncertainties. In Sweden and Finland, the rental market still shows growth due to growth outside new residential building construction.

  • In the Eastern European countries market growth is

expected to remain strong. Modular Space

  • The outlook for the rental market development is

positive for 2019; over ten (10) percent growth is expected for Finland and Denmark and five (5) to ten (10) percent for Sweden, Norway and Germany.

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