CRAMO PLC...CRAMO PLC INTERIM REPORT 1.1.2016 –31.3.2016 CEO Leif Gustafsson CFO Martti Ala-Härkönen FOR A GREAT DAY AT WORK 2 Contents Highlights of Q1/2016 and market outlook

CRAMO PLC INTERIM REPORT

1.1.2016 – 31.3.2016

CEO Leif Gustafsson

CFO Martti Ala-Härkönen

FOR A GREAT DAY AT WORK

2

Contents

Highlights of Q1/2016 and market

outlook

Interim report Q1/2016

Group performance

Business segments

Group strategy and future prospects

Appendix

Additional information

3

Highlights of Q1/2016 Profitable growth continued

Sales:

Sales grew by 5.7% to EUR 155.4 (147.1) million

Sales growth 6.4% in local currencies

Sales grew by 18.9% in FIN and by 7.7% in SWE in local currencies

Sales grew in modular space by 26.3% in local currencies

Costs:

In Q1/2016, indirect costs as a share of sales decreased from

44.1% to 41.9%

Direct cost ratio remained at last year’s level, although

installation services within modular space increased direct

costs in relation to sales

Results / other:

EBITA EUR 13.0 (10.1) million, EBITA margin 8.3% (6.9%)

Strong cash flow from oper. activities: EUR 23.6 (3.5) million

EPS EUR 0.16 (0.09)

Closing down unprofitable depots in Central Europe – results

expected to improve during 2016

On 1 April 2016, Cramo acquired Kurottaja- ja kuljetuspalvelu

Parviainen Oy’s business in Finland to strenghten its worksite

logistics services

-60

-40

-20

0

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

Oct-15

Jan-16

Apr-16

Co

nst

ruct

ion

Co

nfi

de

nce

In

dic

ato

r (m

ea

n-a

dju

ste

d)

Finland Sweden Germany Denmark Poland Europe

Source: European Commission, April 2016

Long-term

average

Jun 2009

Lead indicator: Constr. confidence 2008 – Apr 2016 Cramo’s main markets performing well

Feb 2011Conclusions

General construction

confidence in Europe has

recently turned above

long-term average

Construction confidence on

a high level in Sweden and

Germany, and more

recently also in Finland

Recent development in

Finland promising

All Cramo countries

showing above average

construction confidence

figures in early 2016

Construction growth estimates 2016-18Generally positive projections for Cramo countries in 2016

Sources: Euroconstruct, December 2015 and Forecon, December 2015

Country-specific data in brackets includes: Finland - Rakennusteollisuus RT (April 2016); Sweden - Sveriges Byggindustrier

(February 2016); Norway – Prognosesenteret (March 2016); Denmark - Dansk Byggeri (February 2016)

Highlights

In the Nordics, generally

positive construction outlook

estimated over 2016-18

Finland turning to positive

after 2015

Growth projected to

continue in SWE in 2016,

but to level out in 2017

Solid growth in Norway

and Denmark. However,

in Norway regional

variations and growth

focused in civil engineering

Moderate growth outlook for

Central Europe

Baltics projected to turn to

positive in 2016

Strong construction growth

expected in Poland and

Czech

Construction output (%

change in real terms)2015E 2016F 2017F 2018O

-0,3 % 3,2 %(-1,0 %) (+3,5 %)

5,5 % 2,8 %(+9,0 %) (+4,0 %)

2,4 % 3,9 % 2,1 % 2,6 %(+1,8 %) (+4,2 %) (+2,2 %)

1,3 % 2,3 % 2,7 %(+1,6 %) (+2,5 %) (+3,2 %)

Germany 0,4 % 2,0 % 1,1 % 0,3 %

Austria 0,2 % 1,0 % 1,3 % 1,3 %

Estonia -3,8 % 2,4 % 3,4 % 2,1 %

Latvia -11,0 % 1,2 % 5,8 % 5,6 %

Lithuania 3,5 % 1,1 % 3,7 % 3,3 %

Poland 5,6 % 7,4 % 8,3 % 7,7 %

Czech Republic 7,4 % 3,3 % 3,4 % 4,3 %

Slovak Republic 10,3 % -1,1 % 1,1 % 1,1 %

Russia -7,9 % -2,6 % 2,7 % 7,0 %

Denmark 2,8 %

Norway

Finland 0,6 % 0,9 %

Sweden -0,3 % 2,2 %

6

Q1 / 2016

Group performance

16

0,0

16

1,4

18

2,4

18

4,6

14

8,5

16

0,1

17

3,6

17

5,1

14

0,3

15

9,8

17

1,1

18

0,6

14

7,1

16

1,3

17

2,4

18

7,2

15

5,4

-10%

-5%

0%

5%

10%

15%

20%

0

20

40

60

80

100

120

140

160

180

200

Q1/1

2

Q2/1

2

Q3/1

2

Q4/1

2

Q1/1

3

Q2/1

3

Q3/1

3

Q4/1

3

Q1/1

4

Q2/1

4

Q3/1

4

Q4/1

4

Q1/1

5

Q2/1

5

Q3/1

5

Q4/1

5

Q1/1

6

Qu

arte

rly s

ale

s g

row

th %

(y-o

-y), lin

e g

rap

h)

Qu

art

erl

y s

ale

s (

EU

R m

illi

on

, b

ar

gra

ph

)

7

Cramo quarterly sales development

Q1/2016 sales EUR 155.4m,

y-o-y sales growth +5.7%

(+6.4% in local currencies)

− In local currencies in Q1, sales

grew by 18.9% in Finland, by

7.7% in Sweden and by 18.5%

in Denmark

− Sales decreased in Norway,

Central Europe and Eastern

Europe. In Central Europe due

to a decrease in trading sales,

whereas rental sales increased

− As for product areas, sales

grew in local currencies by

3.0% in equipment rental and

by 26.3% in modular space

Q1/16 vs. Q1/15:

+5.7% (+6.4%*)

* Change in local currencies

Highlights

Group financial target: Sales growth faster than the market

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

30

,2

26

,1

13

,0

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

0

5

10

15

20

25

30

35

40

45

50

Q1/1

2

Q2/1

2

Q3/1

2

Q4/1

2

Q1/1

3

Q2/1

3

Q3/1

3

Q4/1

3

Q1/1

4

Q2/1

4

Q3/1

4

Q4/1

4

Q1/1

5

Q2/1

5

Q3/1

5

Q4/1

5

Q1/1

6

EB

ITA

% (lin

e g

rap

h)

Qu

art

erl

y E

BIT

A (

EU

R m

illi

on

, b

ar

gra

ph

)

8

Cramo quarterly EBITA development

Q1/16 EBITA improved to

EUR 13.0 (10.1) million, or

8.3% (6.9%) of sales

EBITA grew by 27.9% y-o-y

The result improved in

Finland, Sweden, Denmark

and Central Europe

The result improved in both

product areas

In equipment rental, EBITA

EUR 6.9 (5.6) million or

5.4% (4.5%) of sales

In modular space, EBITA

EUR 7.9 (6.8) million or

28.4% (30.5%) of sales.

Margin affected by the

significant proportion of

installation services during

the period

Group financial target:

EBITA margin > 15%

Highlights

10,1

13,0

10,1

1,0

1,0

-0,4

0,3

1,0

-0,3

0,2 1,4

1,2

0,3

5,0

6,0

7,0

8,0

9,0

10,0

11,0

12,0

13,0

14,0

Group Q12015

Finland Sweden Norway Denmark CentralEurope

EasternEurope

Non-allocatedand elim.

Group Q12016

ER MS Non-allocatedand elim.

Group Q12015

Co

nso

lid

ate

d E

BIT

A (

EU

R m

illi

on

)

EBITA bridge Q1/15 Q1/16 by segment and product areaAbsolute EBITA and EBITA margin improved, both product areas

performing well

EBITA improved to EUR 13.0

(10.1) million: +27.9%, with

margin of 8.3% (6.9%)

EBITA above LY in Finland,

Sweden, Denmark and

Central Europe

EBITA margin improved in

Finland, Denmark and Central

Europe. In Sweden EBITA

margin remained at LY level

EBITA above LY in both

product areas

Implementation of focused

strategy continues in 2016

Highlights

CE: Strong EBITA

improvement,

room for further

improvement in

2016

6.9%

of

sales

8.3%

of

sales

DK: Improved

profitability driven

by modular space

FI and SWE:

Strong improve-

ment vs. LY

NO: Challenging

market environment

continued

EE: performance

differs between

markets

Strong performance

both in ER and MS

261,9

257,4

64,8

65,1

40,2

%

38,5

%

44,1

%

41,9

%

0

50

100

150

200

250

300

350

400

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

2014 2015 2015 2016

Jan-Dec . Q1

Ind

irect c

ost (E

UR

millio

n)

Ind

ire

ct

co

st

rati

o

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

232,7

236,7

52,0

54,8

35,7

%

35,4

%

35,3

%

35,3

%

0

50

100

150

200

250

300

350

400

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

2014 2015 2015 2016

Jan-Dec . Q1

Dire

ct c

ost (E

UR

millio

n)

Dir

ect

co

st

rati

o

Direct cost (right axis) Direct cost ratio (left axis)

10

Development in cost base*In Q1/16, indirect costs as a share of sales decreased from 44.1% to

41.9%. Direct cost ratio was on par compared to Q1/15

* 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 2QUARTERLY DIRECT COST 1

0,0

4

0,1

1

0,4

3

0,3

4

-0,0

4

0,1

9

0,4

8

0,3

8

-0,0

3 0,1

1

0,4

5

-0,1

7

0,0

9

0,2

3

0,4

3

0,3

7

0,1

6

0,3

7

0,0

2

0,0

2

-0,3

-0,2

-0,1

0,0

0,1

0,2

0,3

0,4

0,5

0,6

Q1

/12

Q2

/12

Q3

/12

Q4

/12

Q1

/13

Q2

/13

Q3

/13

Q4/1

3

Q1

/14

Q2

/14

Q3

/14

Q4

/14

Q1

/15

Q2

/15

Q3

/15

Q4

/15

Q1

/16

Qu

art

erl

y d

ilu

ted

EP

S (

EU

R)

Earnings per share, diluted Impact of non-recurring items

Cramo EPS performance (diluted)

Q1/16 EPS EUR 0.16

(0.09): +79.5%

Q1/16 net financial

expenses EUR 2.8 (3.1)

million

Q1/16 effective tax rate

21.0% (21.0%)

* 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 costs from a CEO change of EUR 1.2m with a negative impact on EPS of EUR 0.02

**** Q4/2015 includes EUR 0.8m restructuring costs with a negative impact on EPS of EUR 0.02

*

**

Highlights

Q4/2014 non-recurring items amounted to EUR 0.54

***

****

7,3

%

6,8

%

7,0

% 7,5

%

6,9

%

8,0

%

8,0

%

8,3

%

8,5

%

8,7

%

8,2

%

8,3

%

9,6

%

10

,8 %

10

,6 %

12

,0 %

10

,5 %

11

,6 %

-1%

1%

3%

5%

7%

9%

11%

13%

15%

Q1/1

2

Q2/1

2

Q3/1

2

Q4/1

2

Q1/1

3

Q2/1

3

Q3/1

3

Q4/1

3

Q1/1

4

Q2/1

4

Q3/1

4

Q4/1

4

Q1/1

5

Q2/1

5

Q3/1

5

Q4/1

5

Q1/1

6

RO

E %

Return on Equity %

12

Return on Equity

ROE improvement continued

in Q1/2016

ROE (R12m) 11.6% (4.5%)

Comparable ROE (R12m)

before the costs occurring in

2015 from CEO change (EUR

1.2m) and restructuring costs

in Central Europe (EUR

0.8m) 12.0% (9.6%)

Comparable ROE reached

the financial target level of

12% ROE

Performance improvement

actions continue in 2016

Implementation of focused

strategy / must-win battles

continue


ROE-% > 12%

Highlights

13

Quarterly cash flowStrong cash flow in Q1/2016

Q1/2016:

− Cash flow from operating

activities improved clearly

to EUR 23.6m (3.5m),

contributed by higher EBITDA

and reduced NWC

− Cash flow after investments

EUR -4.3m (-27.8m)

− Gross CapEx EUR 30.6m

(41.5m)

Gearing at 80.0% (92.9%)

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

3,5

23,6

-27,8

-4,3

-40

-20

0

20

40

60

80

Q1/1

2

Q2/1

2

Q3/1

2

Q4/1

2

Q1/1

3

Q2/1

3

Q3/1

3

Q4/1

3

Q1/1

4

Q2/1

4

Q3/1

4

Q4/1

4

Q1/1

5

Q2/1

5

Q3/1

5

Q4/1

5

Q1/1

6

Qu

art

erl

y c

as

h f

low

(E

UR

m)

Cash flow from operations Cash flow after investments

14

Q1 / 2016

Business segments

15

FinlandStrong sales growth and improved profitability

In Q1/16, sales grew by 18.9% y-o-y

− Cramo managed to capitalize on the improved market

situation, driven especially by renovation and new

construction projects

− In equipment rental, the share of larger customers

increased

− Demand for modular space continued to be strong and

the quotation base is good

In Q1/16, profitability on a good level, EBITA EUR

3.9 (2.9) million, margin 13.6% (12.1%)

− The result improved in both product areas

In order to stregthen its logistics services

business, Cramo acquired Kurottaja- ja kuljetus-

palvelu Parviainen Oy’s business on 1 April 2016

HighlightsRolling 12-month sales and EBITA-%

1 European Rental Association, Equipment Rental Industry Report 2015, November 2015

115,5

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

%

20,2

%

20,3

%

0%

5%

10%

15%

20%

25%

0

20

40

60

80

100

120

140

Q1/2

012

Q2/2

012

Q3/2

012

Q4/2

012

Q1/2

013

Q2/2

013

Q3/2

013

Q4/2

013

Q1/2

014

Q2/2

014

Q3/2

014

Q4/2

014

Q1/2

015

Q2/2

015

Q3/2

015

Q4/2

015

Q1/2

016

Qu

arte

rly ro

lling

12-m

on

th E

BIT

A m

arg

in

Qu

art

erl

y s

ale

s (

Ro

llin

g 1

2 m

on

ths, E

UR

m)

Sales (R12m) EBITA-% (R12m)

1-3/ 1-3/ Change 1-12/

2016 2015 % 2015

Sales (€m) 28,6 24,0 18,9 % 110,9

EBITA (€m) 3,9 2,9 34,1 % 22,4

EBITA-% 13,6 % 12,1 % 20,2 %

No of personnel (FTE) 455 453 0,4 % 448

No of depots 58 54 7,4 % 54

Key figures

1-3/ 1-3/ Change 1-12/

2016 2015 % 2015

Sales (€m) 80,2 74,1 8,3 % 331,2

EBITA (€m) 13,2 12,2 8,2 % 61,7

EBITA-% 16,5 % 16,5 % 18,6 %


No of depots 100 101 -1,0 % 100

Key figures

16

SwedenSales growth with good profitability

In Q1, sales increased by 8.3% (+7.7% in locals)

In Q1, EBITA at EUR 13.2m (12.2m) with margin

of 16.5% (16.5%)

− The good market situation was capitalised on both product

areas. Profitability was affected by a high amount of

modular space assembly sales and higher depreciations

− The equipment rental market situation is good in nearly all

major urban areas. Utilisation rates are at a good level

and investments have been increased

− The demand for modular space also remained good

Long-term contract with the construction company

JM was renewed for five years

Construction growth1 forecast 4% for 2016. ERA1

forecasts growth of about 1% for equipment rental



+7.7%*

1 Forecast published by the Swedish Construction Federation (Sveriges Byggindustrier) in February; European Rental Association,

Equipment Rental Industry Report 2015, November 2015

33

7,3

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 %

18

,6 %

18

,6 %

0%

5%

10%

15%

20%

25%

250

260

270

280

290

300

310

320

330

340

Q1/2

012

Q2/2

012

Q3/2

012

Q4/2

012

Q1/2

013

Q2/2

013

Q3/2

013

Q4/2

013

Q1/2

014

Q2/2

014

Q3/2

014

Q4/2

014

Q1/2

015

Q2/2

015

Q3/2

015

Q4/2

015

Q1/2

016

Qu

arte

rly ro

lling

12

-mo

nth

EB

ITA

ma

rgin

Qu

art

erl

y s

ale

s (

Ro

llin

g 1

2 m

on

ths

, E

UR

m)


17

DenmarkProfitability continued to improve, market developing favourably

In Q1, sales increased by 18.5% year-on-year

− The market situation in both product areas continued to

develop favourably

Q1/16 EBITA was EUR 0.7m (0.4m), or 9.3%

(6.7%) of sales.

− Profitability improved due to strong demand for modular

space, new modular space deliveries and better cost

control

− In equipment rental, Cramo continued to focus on best-

performing markets and product areas

− The market situation also offers opportunities for targeted

growth investments

Equipment rental1 market forecasted to grow 2.6%

and construction market1 slightly over 2% in 2016


1 European Rental Association, Equipment Rental Industry Report 2015, November 2015; Euroconstruct, December 2015

29,5

-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

%

6,6

%

7,3

%

-15%

-10%

-5%

0%

5%

10%

0

5

10

15

20

25

30

35

40

45

Q1/2

012

Q2/2

012

Q3/2

012

Q4/2

012

Q1/2

013

Q2/2

013

Q3/2

013

Q4/2

013

Q1/2

014

Q2/2

014

Q3/2

014

Q4/2

014

Q1/2

015

Q2/2

015

Q3/2

015

Q4/2

015

Q1/2

016

Qu

arte

rly ro

lling

12-m

on

th E

BIT

A m

arg

in

Qu

art

erl

y s

ale

s (

Ro

llin

g 1

2 m

on

ths, E

UR

m)


1-3/ 1-3/ Change 1-12/

2016 2015 % 2015

Sales (€m) 7,7 6,5 18,5 % 28,3

EBITA (€m) 0,7 0,4 65,0 % 1,9

EBITA-% 9,3 % 6,7 % 6,6 %

No of personnel (FTE) 98 111 -11,7 % 97

No of depots 9 8 12,5 % 8

Key figures

Cramo modular space: Harmonised high-quality fleet

with excellent references and growth opportunities

• Renovation needs / mold

problems

• Aging building stock

• Senior citizen housing

• Refugee inflow

• Both private and public sector

demand

• Temporary space needs in large

industrial and infrastructure

projects

• Industrial customers’ demand for

flexibility in cost base (temporary

vs. permanent buildings)

• Improving economic cycle creates

more demand for office space

• Modular space has high reputation

among private customers

Schools

&

Daycare

• Renovation needs / mold

problems

• Aging building stock

• Urbanisation

• Refugee inflow

• Increasing birth rate in Sweden:

More need for new schools

• Mainly public sector customers

Offices

Accom-

modation

Growth Drivers

Q1 Sales 28.0 M€ 2015: 22.2 M€

Q1 Sales growth 26.3% In locals

Q1 EBITA 7.9 M€ 2015: 6.8 M€

Q1 EBITA-% 28.4% 2015: 30.5%

http://cramoadapteo.fi/globalassets/images/content_images/c80_gallery/office_two_storeys_outside_c80.jpg

http://cramoadapteo.fi/globalassets/images/content_images/c80_gallery/office_two_storeys_outside_c80.jpg

19

Group strategy and future prospects

Continued strategy execution in 2016

Further roll-out of Cramo Story in all

operating countries

Further strengthen the Cramo brand and

deliver on customer promises

Execution and training in all work streams

and deployment of corporate culture

Reap the benefits of performance

management

Capture growth opportunities and focus

on sales and business development

Continued benefits from performance

improvement actions

Strategic initiatives to back core strategy

Cramo Group’s strategy work on

“Vision 2020” has been initiated

Modular Space

growth strategy

Dynamic pricing

strategy

Outsourcing and

M&A strategy

In Finland, bolt-on acquisition in April 2016 to

strengthen the worksite logistics services businessKurottaja- ja Kuljetuspalvelu Parviainen Oy’s business

22

Founded in 2004, 23 employees

Sales of ~ EUR 3m

Specialising in worksite logistics and

telehandler rental with operators

Fleet brands well known in the industry

Main customers: the leading companies in the

construction industry

Cramo Finland – Worksite services

Traffic guidance

Logistics responsibleperson

Forklift with driver

Logistics management/

Scheduling withweb-based application

Hauling

Work site cleaning

Interim Warehousing

Access control – Cramo Control

Transportation frominterim warehouse to

work site

In Q1/16, several modular space projects installed

3-storey pavillion for KaeserCompressors at the Bauma2016 exhibition in Munich, Germany

Bauma 2016: In total 20 stands

built from Cramo modules (2,700

sqm of space) were delivered to

exhibitors at the largest

construction machinery fair in the

World, Bauma

Office space in open landscape for Volvo Real Estate, Gothenburg, Sweden

Two parallel buildings with 2,300

sqm space in two stores

Includes open landscape

solutions, office rooms,

conference and group rooms

Cramo Adapteo has a well-

established presence in 8

countries with over 20 000

modular space units and with

capital employed of about

EUR 256m at the end Q1/16

Germany

Sweden

Denmark

Norway

Estonia

Finland

Latvia

Lithuania

24

Future prospects

European Central Bank expects favourable financing conditions and low mortgage interest rates to boost demand for housing in Europe

Intensely increasing immigration impacts positively on construction and modular space in Europe

Favorable construction outlook according to Euroconstructand Forecon

In the long term, equipment rental is expected to grow faster than construction. ERA expects the usage of rental services to increase in all Cramo’s main markets in 2016

For modular space, numerous growth drivers in place. Cramo estimates that demand for modular space has increased in the Nordics by appr. 6% in recent years and that market growth is somewhat stronger in Baltics / GER

Guidance for 2016 unchanged: “In 2016, Cramo Group’s sales will grow in local currencies and the EBITA margin will improve compared to 2015.”

Appendix

25

26

Key figuresChange

EUR million (unless otherwise stated) %

INCOME STATEMENT

Sales 155,4 147,1 5,7 % 667,9

EBITDA 38,7 34,3 12,9 % 185,7

Operating profit (EBITA) before amortisation and impairment of intangible

assets resulting from acquisitions

13,0 10,1 27,9 % 84,8

Operating profit/loss (EBIT) 11,7 8,0 46,0 % 76,7

Profit/Loss before tax (EBT) 8,9 4,9 81,0 % 63,8

Profit/Loss for the period 7,0 3,9 81,0 % 49,7

SHARE-RELATED INFORMATION

Earnings per share (EPS), EUR 0,16 0,09 78,5 % 1,13

Earnings per share (EPS), diluted, EUR 0,16 0,09 79,5 % 1,12

Shareholders' equity per share, EUR 10,46 10,11 3,5 % 11,05

BALANCE SHEET

Equity ratio, % 43,7 % 42,3 % 45,7 %

Gearing, % 80,0 % 92,9 % 75,1 %

Net interest-bearing liabilities 372,1 412,4 -9,8 % 368,4

OTHER INFORMATION

Return on investment, rolling 12-month, % 9,5 % 4,9 % 9,0 %

Return on equity, rolling 12-month, % 11,6 % 4,5 % 10,5 %

Gross capital expenditure (incl. acquisitions) 30,6 41,5 -26,3 % 175,0

of which related to acquisitions and business combinations 8,5 -100,0 % 9,8

Cash flow from operating activities 23,6 3,5 572,4 % 174,9

Cash flow after investments -4,3 -27,8 35,6

Average number of personnel, FTE 2 497 2 487 0,4 % 2 486

Number of personnel at end of period, FTE 2 505 2 494 0,4 % 2 473

1-3/

2016

1-3/

2015

1-12/

2015

27

Consolidated income statement

Change

EUR (1 000) %

SALES 155 436 147 061 5,7 % 667 877

Other operating income 3 284 4 182 -21,5 % 13 462

Materials and services -54 806 -51 981 -5,4 % -236 619

Employee benefit expenses -36 601 -35 999 -1,7 % -143 899

Other operating expenses -28 490 -28 820 1,1 % -115 510

Depreciation and impairment on tangible assets and

assets held for sale

-25 763 -24 173 -6,6 % -100 878

Share of profit/loss of joint ventures -101 -140 395

EBITA 12 958 10 130 27,9 % 84 827

% of sales 8,3 % 6,9 % 12,7 %

Amortisation and impairment on intangible assets

resulting from acquisitions and disposals

-1 284 -2 137 39,9 % -8 114

OPERATING PROFIT/LOSS (EBIT) 11 674 7 993 46,1 % 76 714

% of sales 7,5 % 5,4 % 11,5 %

Finance costs (net) -2 813 -3 097 9,2 % -12 923

PROFIT/LOSS BEFORE TAXES 8 861 4 896 81,0 % 63 791

% of sales 5,7 % 3,3 % 9,6 %

Income taxes -1 861 -1 028 -14 075

PROFIT/LOSS FOR THE PERIOD 7 000 3 868 81,0 % 49 715

% of sales 4,5 % 2,6 % 7,4 %

1-3/

2016

1-3/

2015

1-12/

2015

28

Consolidated balance sheet31.3. 31.3. Change

EUR (1 000) 2016 2015 %

ASSETS

NON-CURRENT ASSETS

Tangible assets 689 189 641 991 7,4 %

Goodwill 151 114 152 185 -0,7 %

Other intangible assets 66 339 75 445 -12,1 %

Deferred tax assets 14 966 15 760 -5,0 %

Investments in joint ventures 1 684 7 020 -76,0 %

Loan receivables 15 036 17 161 -12,4 %

Trade and other receivables 1 375 1 081 27,2 %

TOTAL NON-CURRENT ASSETS 939 703 910 831 3,2 %

CURRENT ASSETS

Inventories 9 326 10 248 -9,0 %

Trade and other receivables 120 811 123 324 #REF!

Income tax receivables 3 356 11 334 965,9 %

Derivative financial instruments 98 874 284,0 %

Cash and cash equivalents 3 499 4 355 -97,7 %

TOTAL CURRENT ASSETS 137 089 150 136 -8,7 %

Assets held for sale

Assets to be transferred to joint venture

TOTAL ASSETS 1 076 793 1 060 967 1,5 %

31.3. 31.3. Change

EUR (1 000) 2016 2015 %

EQUITY AND LIABILITIES

EQUITY

Share capital 24 835 24 835 0,0 %

Other reserves 326 297 323 516 0,9 %

Fair value reserve

Hedging fund -9 486 -8 482

Translation differences -27 968 -22 533 -24,1 %

Retained earnings 151 355 126 366 19,8 %

EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT

COMPANY 465 033 443 703 4,8 %

Hybrid capital

TOTAL EQUITY 465 033 443 703 4,8 %

NON-CURRENT LIABILITIES

Interest-bearing liabilities 283 501 323 908 -12,5 %

Derivative financial instruments 11 436 9 784 16,9 %

Deferred tax liabilities 69 228 68 362 1,3 %

Retirement benefit obligations 1 730 1 906 -9,2 %

Other non-current liabilities 2 067 3 156 -34,5 %

TOTAL NON-CURRENT LIABILITIES 367 962 407 117 -9,6 %

CURRENT LIABILITIES

Interest-bearing liabilities 92 114 92 868 -0,8 %

Derivative financial instruments 537 552 -2,6 %

Trade and other payables 148 936 113 971 30,7 %

Income tax liabilities 1 916 2 282 -16,0 %

Provisions 295 473

TOTAL CURRENT LIABILITIES 243 798 210 146 16,0 %

TOTAL LIABILITIES 611 760 617 264 -0,9 %

TOTAL EQUITY AND LIABILITIES 1 076 793 1 060 967 1,5 %

29

Cash flow statement1-3/ 1-3/

EUR (1 000) 2016 2015

Net cash flow from operating activities 23 589 3 508

Net cash flow from investing activities -27 915 -31 341

Cash flow after investments -4 326 -27 833

Cash flow from financing activities

Change in interest-bearing receivables 232 493

Change in finance lease liabilities -1 761 -3 632

Change in interest-bearing liabilities 5 447 27 948

Hybrid capital

Proceeds from share options exercised 376 1 608

Proceeds from share issue

Non-controlling interest

Dividends paid

Net cash flow from financing activities 4 294 26 417

Change in cash and cash equivalents -32 -1 417

Cash and cash equivalents at period start 3 511 5 689

Translation differences 20 83

Cash and cash equivalents at period end 3 499 4 355

1-3/ 1-3/ Change 1-12/

2016 2015 % 2015

Sales (€m) 16,0 18,6 -14,1 % 70,4

EBITA (€m) 1,2 1,6 -22,2 % 5,4

EBITA-% 7,7 % 8,5 % 7,7 %


No of depots 28 28 0,0 % 28

Key figures

30

NorwaySolid profitability in a challenging market

In Q1, sales decreased by 14.1% year-on-year

(-6.3% in local currency)

− The equipment rental market remained challenging

− Resources were increased in the modular space product

area and the quotation base took an upward turn

Q1 EBITA EUR 1.2m (1.6m), margin 7.7% (8.5%)

− Profitability was impaired by the decrease in sales and

the fiercer competition in equipment rental in Southern

Norway

− Cost adjustments continued. Target for 2016 is to develop

sales operations and customer service. Operations are

focused on growing market segments and geographic

regions where demand is expected to increase

ERA estimates1 that the rental market will take an

upward turn and grow appr. 2% in 2016


-6.3%*


1 European Rental Association, Equipment Rental Industry Report 2015, November 2015

67,8

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

%

7,7

%

7,4

%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

0

10

20

30

40

50

60

70

80

90

100

Q1/2

012

Q2/2

012

Q3/2

012

Q4/2

012

Q1/2

013

Q2/2

013

Q3/2

013

Q4/2

013

Q1/2

014

Q2/2

014

Q3/2

014

Q4/2

014

Q1/2

015

Q2/2

015

Q3/2

015

Q4/2

015

Q1/2

016

Qu

arte

rly ro

lling

12-m

on

th E

BIT

A m

arg

in

Qu

art

erl

y s

ale

s (

Ro

llin

g 1

2 m

on

ths, E

UR

m)


31

Central EuropeRental sales grew and profitability improved

In Q1, sales decreased by 3.3% y-o-y

− Sales decrease was due to a decrease in trading sales.

Rental sales grew both in equipment rental and in the

modular space product area

Q1 EBITA was EUR -3.2m (-4.1m), with margin of

-22.8% (-28.7%).

− Profitability continued to improve but was still affected by

the strong seasonal variation of the Central European

business operations

− In equipment rental, operations were focused on the best-

performing geographic regions

− The modular space business is growing and demand is

expected to remain good

In Germany, both construction1 and rental1 expected

to grow about 2% in 2016


1 European Rental Association, Equipment Rental Industry Report 2015, November 2015; Euroconstruct, December 2015

76,8

0,8

%

-0,2

%

-1,1

%

-0,4

%

-0,9

% -0,2

%

-0,6

%

-1,4

%

-1,3

%

-4,7

%

-6,8

%

-7,7

% -7,0

% -5,9

%

-4,6

%

-4,3

%

-3,1

%

-10%

-8%

-6%

-4%

-2%

0%

2%

0

10

20

30

40

50

60

70

80

90

Q1/2

012

Q2/2

012

Q3/2

012

Q4/2

012

Q1/2

013

Q2/2

013

Q3/2

013

Q4/2

013

Q1/2

014

Q2/2

014

Q3/2

014

Q4/2

014

Q1/2

015

Q2/2

015

Q3/2

015

Q4/2

015

Q1/2

016

Qu

arte

rly ro

lling

12-m

on

th E

BIT

A m

arg

in

Qu

art

erl

y s

ale

s (

Ro

llin

g 1

2 m

on

ths, E

UR

m)


1-3/ 1-3/ Change 1-12/

2016 2015 % 2015

Sales (€m) 13,9 14,4 -3,3 % 77,2

EBITA (€m) -3,2 -4,1 -3,3

EBITA-% -22,8 % -28,7 % -4,3 %


No of depots 65 74 -12,2 % 71

Key figures

1-3/ 1-3/ Change 1-12/

2016 2015 % 2015

Sales (€m) 9,3 9,8 -4,4 % 50,9

EBITA (€m) -1,1 -0,8 6,3

EBITA-% -11,3 % -7,8 % 12,3 %


No of depots 68 63 7,9 % 67

Key figures

32

Eastern Europe1

Performance varies between markets, softness especially in Latvia

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 Q1, sales decreased by 4.4% y-o-y (-3.5% in

local currencies)

− In Poland and Estonia, sales developed favourably

during the period. Sales declined especially in Latvia.

Q1 EBITA EUR -1.1m (-0.8m), with margin of

-11.3% (-7.8%)

− Profitability improved in Poland and Estonia. In Czech

Republic Cramo is growing its business, which impaired

the early-year profitability. In Lithuania and Latvia, the

demand for equipment rental was slower than expected

Fortrent Q1/2016

− Sales EUR 5.5m (7.2m), i.e. down by 23.6% y-o-y. In

local currencies, sales decreased by 11.2%

− Profit for the period EUR -0.2m (-0.3m). Cramo’s share

-0.1m (-0.1m) included in Eastern Europe EBITA



-3.5%*

50,4

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

%

12,3

%

11,8

%

0%

5%

10%

15%

20%

25%

0

10

20

30

40

50

60

70

80

Q1/2

012

Q2/2

012

Q3/2

012

Q4/2

012

Q1/2

013

Q2/2

013

Q3/2

013

Q4/2

013

Q1/2

014

Q2/2

014

Q3/2

014

Q4/2

014

Q1/2

015

Q2/2

015

Q3/2

015

Q4/2

015

Q1/2

016

Qu

arte

rly ro

lling

12-m

on

th E

BIT

A m

arg

in

Qu

art

erl

y s

ale

s (

Ro

llin

g 1

2 m

on

ths, E

UR

m)


ADDITIONAL

INFORMATION BY

PRODUCT AREA

EUR 1'000 1-3 2016 1-3 2015 1-3 2016 1-3 2015 1-3 2016 1-3 2015 1-3 2016 1-3 2015

Sales 127 637 124 927 28 014 22 236 -215 -102 155 436 147 061

Sales growth 2,2 % 26,0 % 5,7 %

EBITDA 28 234 26 000 12 191 10 385 -1 704 -2 082 38 721 34 303

% of sales 22,1 % 20,8 % 43,5 % 46,7 % 24,9 % 23,3 %

Depreciation -21 314 -20 441 -4 242 -3 609 -207 -124 -25 763 -24 173

EBITA 6 920 5 560 7 949 6 776 -1 911 -2 205 12 958 10 130

% of sales 5,4 % 4,5 % 28,4 % 30,5 % 8,3 % 6,9 %

Capital employed 630 136 665 560 255 970 219 977 624 6 390 886 730 891 927

Equipment rental Modular SpaceUnallocated amounts and

eliminationsGROUP

Financial summary by product area 1-3/2016Profitable growth continued in both product areas. High installation

services boosted modular space growth, while affecting its margin

+26.3%*+3.0%*


2,9 3,9

24,028,6

2015 2016

12,2 13,2

74,1

80,2

2015 2016

1,6 1,2

18,616,0

2015 2016

0,4 0,7

6,5 7,7

2015 2016

-0,8 -1,1

9,8 9,3

2015 2016

NORWAY DENMARKCENTRAL

EUROPE

EASTERN

EUROPEFINLAND SWEDEN

Sales and EBITA by business segment Q1/16 vs. Q1/15

34* Sales change in local currency

Sales

EBITA

+18.9%

12.1% 13.6%

EBITA margin:

Sales growth:

+8.3% (+7.7%*)

16.5% 16.5%

EBITA margin:

Sales growth:

-14.1% (-6.3%*)

8.5% 7.7%

EBITA margin:

Sales growth:

+18.5%

6.7% 9.3%

EBITA margin:

Sales growth:

-3.3%

-28.7% -22.8%

EBITA margin:

Sales growth:

-4.4% (-3.5%*)

-7.8% -11.3%

EBITA margin:

Sales growth:

-4,1 -3,2

14,4 13,9

2015 2016

35

Modular space order book8

1,6

98

,3

95

,3

89

,5

97

,1

96

,6

95

,1

85

,2

94

,0

10

3,4

99

,4

97

,5

98

,9

10

0,6

98

,0 10

4,6

10

6,1

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0

20

40

60

80

100

120

140

Q1/1

2

Q2/1

2

Q3/1

2

Q4/1

2

Q1/1

3

Q2/1

3

Q3/1

3

Q4/1

3

Q1/1

4

Q2/1

4

Q3/1

4

Q4/1

4

Q1/1

5

Q2/1

5

Q3/1

5

Q4/1

5

Q1/1

6

Sh

are

of r

en

tal (%

of to

tal o

rd

er b

oo

k)

Ord

er b

oo

k (

EU

R m

)

Rental Sales

36

Quarterly capital expenditure

In Q1/2016, organic gross

CapEx was EUR 30.6m

(33.0m)

− Organic CapEx decreased by

7.2% from Q1/15

− Acquisitions EUR 0.0m (8.5m)

Gross capital expenditure

grew especially in Finland,

Sweden and Eastern Europe.

In Central Europe and

Norway, investments were

decreased

As for product areas, Cramo

continued its growth

investments in modular space

Note: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. In Q4/15, acquisitions include MDS Raumsysteme’s modular space business

Highlights

24,3

40,8

33,5

25,6

15,0

22,4

31,9 31,227,3

41,745,4

33,3 33,0

46,1 46,8

39,4

30,6

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

0,0

-0,1

1,3

0,0

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

46,1 46,7

40,7

30,6

0%

10%

20%

30%

40%

50%

60%

-20

0

20

40

60

80

100Q

1/1

2

Q2/1

2

Q3/1

2

Q4/1

2

Q1/1

3

Q2/1

3

Q3/1

3

Q4/1

3

Q1/1

4

Q2/1

4

Q3/1

4

Q4/1

4

Q1/1

5

Q2/1

5

Q3/1

5

Q4/1

5

Q1/1

6

Gro

ss

Cap

ital E

xp

en

ditu

re to

Qu

arte

rly s

ale

s (%

)

Gro

ss

Cap

ital E

xp

en

dit

ure

(E

UR

m)

CapEx CapEx, acquisitions Gross CapEx to sales

375392 388

347365

428402

365 375

414 415385

412 420 407

368 372

77

,4 %

79

,8 %

74

,3 %

65

,1 %

69

,7 %

92

,4 %

82

,9 %

72

,9 %

76

,3 %

89

,0 %

85

,6 %

84

,7 % 9

2,9

%

91

,2 %

87

,3 %

75

,1 %

80

,0 %

0%

20%

40%

60%

80%

100%

120%

140%

0

300

600

900

1 200Q

1/1

2

Q2/1

2

Q3/1

2

Q4/1

2

Q1/1

3

Q2/1

3

Q3/1

3

Q4/1

3

Q1/1

4

Q2/1

4

Q3/1

4

Q4/1

4

Q1/1

5

Q2/1

5

Q3/1

5

Q4/1

5

Q1/1

6

Ge

arin

g %

Ne

t i

nte

re

st-b

ea

rin

g lia

bil

itie

s (

EU

R m

)

Net interest-bearing liabilities Gearing %

37

Strong capital structure

At the end of Q1/16, net

interest-bearing debt was

EUR 372.1m (412.4m)

In Q1/16, gearing at 80.0%

(92.9%)

− Gearing positively impacted

by strong cash flow

− Gearing impacted negatively

periodically by the effect of

dividend liability on equity

Gearing clearly meeting the

financial target level of

< 100%


Gearing < 100%

Highlights

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

Oct-15

Jan-16

Apr-16

Eco

no

mic

Se

nti

me

nt

Ind

icat

or

(ESI

)

Finland Sweden Germany Denmark Poland Europe

Conclusions

Source: European Commission, April 2016

Long-term

average

Mar 2009

Jan 2011

Lead indicator: economic sentiment 2008 – Apr 16

While economic sentiment

was still somewhat mixed in

2015, the trend lines of early

2016 show a positive trend

Europe’s overall economic

sentiment remaining also

positive

Sentiment above long-term

average in Sweden and

Germany

Sentiment in Poland and

Denmark close to long-term

average

Finland still slightly below

long-term average, but

improving lately

CRAMO PLC...CRAMO PLC INTERIM REPORT 1.1.2016 –31.3.2016 CEO Leif Gustafsson CFO Martti Ala-Härkönen FOR A GREAT DAY AT WORK 2 Contents Highlights of Q1/2016 and market outlook

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