THE SHARING ECONOMY CRAMO GROUP DRIVING THE SHARING ECONOMY - PowerPoint PPT Presentation

DRIVING THE SHARING ECONOMY CRAMO GROUP

DRIVING THE SHARING ECONOMY CRAMO GROUP

Our purpose is to drive the sharing economy DRIVING This purpose is closely connected to our vision – Shared Resources Simplified. By making the sharing THE SHARING of our rental solutions and value-adding services easy for our customers, we also drive the development ECONOMY towards a sharing economy across the industry. Digitalisation, sustainability, innovation and focus on our people are at the core of our Shape and Share CRAMO GROUP growth strategy.

CRAMO GROUP IN NUMBERS 2018 780 130 SALES, MEUR COMPARABLE EBITA, MEUR 14 2 1988 300 COUNTRIES BUSINESS Listed on the Helsinki Stock DIVISIONS DEPOT NETWORK Exchange, midcap In addition to strong market position and brand, Cramo’s key 2,753 230,000 strength is extensive rental concept combined with flexible business AVERAGE NUMBER OF EMPLOYEES FLEET model and operational efficiency

CRAMO LOCATIONS 2018 #2 #2 #1 Finland Russia Norway in Europe in the Nordics (MS) Estonia in Europe Sweden 300 14 324 Lithuania Denmark countries depots depots Poland Germany Ukraine Czech Rep. 230,000 150,000 Slovakia rental units customers Cramo Hungary Austria Fortrent

CRAMO GROUP TODAY A rental solutions provider ▪ Cramo is #2 in the equipment rental market in Europe Cramo is a rental ▪ Cramo Adapteo is #1 in modular space in the Nordic countries solutions provider in ▪ Sales of 780 MEUR and comparable EBITA machinery, equipment 130 MEUR in 2018 and modular space – ▪ We operate in 14 countries in the Nordic and Baltic with a sustainable countries, Germany, Austria, Hungary, the Czech Republic and Slovakia. In Russia and Ukraine as Fortrent (50% business model owned JV). ▪ Cramo's 2,753* employees serve over 150,000 customers * Average number of employees

OUR BUSINESSES ▪ Our business divisions are Equipment Rental and Two business divisions Modular Space ▪ Equipment Rental offers tools, trading and rental related services, access equipment, site huts and construction equipment ▪ Modular Space offers rental and rental related services of modules. Demerger of Modular Spaces business, Cramo Adapteo, ongoing. Spin-off expected in Q3 2019. Equipment Rental Modular Space

2018 A year of good performance CRAMO GROUP

YEAR IN BRIEF 2018 – A year of continued good performance 6.1% ORGANIC SALES GROWTH ▪ Solid growth in sales and EBITA ▪ Acquisitions in both businesses ▪ 15.7% Successful performance improvement in Modular Space business COMPARABLE ROE ▪ Focus on digitalisation, innovation, sustainability and people development bolstered good performance 16.7% COMPARABLE EBITA MARGIN 9.5 LTIR* * LTIR (Lost time injury rate) = Number of work-related accidents with at least one full day absence/million working hours

STRONG HISTORY OF GROWTH AND PROFITABILITY 800 18% 16.7% 16.5% 15.6% 16% 780 Comparable EBITA margin 750 14% 13.0% Sales (MEUR) 729 11.2% 12% 712 700 10.0% 10% 8% 668 650 657 652 6% 4% 600 2% 550 0% 2013 2014 2015 2016 2017 2018 Sales Comparable EBITA margin

▪ Acquisition of KBS Infra GmbH , German construction site logistics company, strengthened Cramo’s Equipment Rental business position in Central Europe with extensive construction site planning and logistics ▪ Acquisition of Nordic Modular Group Holding AB , Key events Swedish-based modular space company, strengthened Cramo’s Modular Space business position on the Nordic of 2018 market by providing in-house development and production capabilities ▪ Cramo was awarded the European Rental Association’s (ERA) Sustainability Committee Award 2018 and CRAMO GROUP European CEO’s Best CEO in the Sustainable Rental Equipment Industry 2018 ▪ Cramo launched a Building information modelling (BIM) service as of the first players in the rental business

Year 2 of Shape and Share strategy CRAMO GROUP

OUR STRATEGY Creating value by simplifying the sharing of resources

STRATEGIC STEPS 2017-2020 CRAMO GROUP Growth • Building a new footprint in chosen markets • Targeting organic and inorganic growth • Continuously evaluating potential acquisiti- on target companies and striving for a leading position in chosen markets Optimise • Shaping the business structure and model • Enhancing the performance culture • Creating a new digital concept • Striving for zero accidents Align • Implementing Group-wide processes and tools • Living the Cramo Story • Establishing the renewed Cramo Care

SEIZING OPPORTUNITIES IN A CHANGING WORLD Sharing economy MEGATRENDS DRIVERS Migration Digitalisation CRAMO CRAMO Urbanisation Sustainable Demographic changes development Scarcity of resources Sharing economy

DRIVING INNOVATION Game-changing offerings Equipment rental Digitalisation has ▪ Digital rental platform opened up new ways ▪ BIM service ▪ Digital fleet management for us to further ▪ Dry chain rental service simplify professional ▪ Maintenance break cycle management tool sharing and to develop ▪ Product Viewer digital app for data and documents ▪ innovative, game- MyEquip mobile app to manage rental fleet ▪ IoT for rental equipment management changing solutions and services Modular space ▪ Pilots with solar panels as energy source for rental modules ▪ Smart Energy solution to save energy in heating and lightning of modular space

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

DIGITAL CHANGE LEADERS Changing the way our industry interacts Digitalisation is one of the single most important enablers of more effi- cient and easily accessible sharing ▪ 24/7 access to Equipment Rental services and solutions ▪ Fleet management tool ▪ Browse, compare, order and return ▪ Safety and user manuals ▪ MyEquip -app ▪ Product Viewer – app

WE ARE WE ARE SHAPERS SHAPERS OUR NEW Our new people PEOPLE STRATEGY strategy CRAMO GROUP

WE ARE SHAPERS Shaping our industry, our business and our own future “For me, it’s important that Cramo is an attractive employer, both for you who already work here and for you who might join us in the future. I strongly believe that we need to continue to focus on developing our people – to have high engagement and reach our company goals.” Petra Schedin Stergel, SVP HRD www.cramogroup.com/career We are shaping our industry Focus on people Passion for improvement We have the ambition to take our We are on a journey of We have an open atmosphere. Everyone company and our industry to the next growth. To reach our full can influence the future of Cramo and level. We find new ways to exceed our potential we focus on can contribute with new ideas. customers’ expectations. developing our people.

Financial and non-financial targets and outcomes CRAMO GROUP

SOLID GROWTH CONTINUED Organic sales growth 6.1% in 2018 vs 2017 Comparable EBITA improved to EUR 130.1 million (EUR 120.0) Comparable EBITA margin was 16.7% (16.5%) Comparable EPS grew to EUR 2.05 (1.87) Comparable ROE increased to 15.7% (15.4%)

ALL GROUP LEVEL FINANCIAL TARGETS ACHIEVED CRAMO GROUP Comparable return on equity [ROE] Net debt / EBITDA Outcome Target Outcome Target >15% 15.7% <3 2.88 [15.4] [1.65] Financial targets EQUIPMENT RENTAL BUSINESS DIVISION Organic sales growth 2 Comparable ROCE 4 2017 – 2020 Target Outcome Target Outcome 5.4% >14.5% >14.4% and outcomes >Market 1 [4.0] [15.2] 2018 (2017) MODULAR SPACE BUSINESS DIVISION Organic rental sales growth 3 Comparable ROCE 4 Outcome Target Outcome Target Double 14.6% >12.5% 8.8% digit [9.3] [9.1] 1 According to ERA, in the markets where Cramo is present 2 Organic sales growth excludes the impact of acquisitions, divestments and exchange rate changes 3 Organic rental sales growth excludes the impact of acquisitions, divestments and exchange rates 4 Cramo changed the calculation method of ROCE’s capital employed component into 12 months average in 2018 reporting period