41
CRAMO PLC INTERIM REPORT 1.1.2011 – 30.6.2011 POWERING YOUR BUSINESS
CRAMO PLC
INTERIM
REPORT1.1.2011 – 30.6.2011
POWERING YOUR BUSINESS
2
CEO Vesa Koivula
CFO Martti Ala-Härkönen
3
Contents
� Highlights of Q2/2011 and market
outlook
� Interim report Q2/2011
� Group performance
� Business segments
� Execution of Cramo’s strategy
� Appendix
� Additional financial information
4
Highlights of Q2/2011Strong sales growth, better profitability, increasing market uncertainty
Number of depots
6/2011: 398
• Strong sales growth continued in Q2/2011, profitability
improved according to expectations
– Sales EUR 161,1m (114,0m), growth 41,4%
– EBITA EUR 14,3m (3,8m), margin 8,9% (3,3%)
– EPS EUR 0,09 (-0,15)
• Cash flow from operations improved clearly, acquisitions
and investments impacted cash flow after investments;
capital structure improved as a result of the rights issue
– Cash flow from operations EUR 32,4m in H1/11
(EUR 11,2m)
– Cash flow after investments EUR -98,3m in H1/11
(EUR 18,1m)
– Gearing 91,8% (111,7%)
• Execution of Cramo’s strategy continued
– Rights Issue to support Cramo's business and to strengthen
balance sheet completed in April; EUR 97,4m of new equity
raised after expenses
– Acquisitions of Tidermans in Sweden and Stavdal in
Norway in June
– Integration of Theisen Group proceeded according to plans
Russia
Denmark
GermanyPoland
CzechRepublic
Austria Hungary
Slovakia
Ukraine
Belarus
Lithuania
Latvia
Estonia
Norway
Sweden
Finland
Romania
Moldova
St. Petersburg
Bulgaria
Slovenia
Croatia
Bosnia and
HerzegovinaSerbia
Macedonia
Albania
Moscow Yekaterinburg
Switzerland
Kalinin-
grad
5
Expected construction growth, 2010-2013Construction output, % change 2010E 2011E 2012E 2013O
Finland 6,3% (5,8%)
4,0%(5,0%)
0,6% (3,0%)
2,5%
Sweden 3,5% (4%)
5,0%(8%)
4,0%(3%)
1,8%
Norway -3,3% 5,9%(4%)
6,2%(6%)
3,9%
Denmark -8,4%(-10,8%)
2,7%(-1,1%)
5,7%(2,0%)
8,7%
Baltic Countries -15,1% 7,9% 9,7% 7,7%
Poland 4,8% 12,8% 4,1% 1,0%
Czech Republic -7,6% -1,1% -0,2% 0,8%
Slovakia -3,6% -1,6% 4,4% 3,9%
Russia -1,0% 5,0% 7,0% 7,0%
Germany 1,9% 1,7% 1,8% 1,7%
Austria -3,4% 0,0% 1,0% 1,3%
Switzerland 3,3% 0,8% 1,7% 1,9%
Hungary -9,0% -3,0% 3,8% 7,9%
Sources: Euroconstruct and VTT, June 2011.
Country-specific data in brackets includes: Finland - Rakennusteollisuus RT (April 2011); Sweden - Sveriges Byggindustrier (June
2011); Norway – Prognosesenteret (April 2011), figures for Norway include building construction and exclude civil engineering,
which is expected to grow by 6% in 2011 and 15% in 2012 ; Denmark - Dansk Byggeri (February 2011)
-20 %
-10 %
0 %
10 %
20 %
30 %
40 %
-60 % -50 % -40 % -30 % -20 % -10 % 0 % 10 %
Co
nstr
uction
ou
tpu
t gro
wth
20
10
-13
, cu
mu
lative %
Construction output loss, cumulative % from peak to trough
6
Cramo well-positionedLarger footprint together with the acquired Theisen Group
Higher extent of construction output loss in recession
Faster s
peed of re
covery fro
m re
cession
Poland***Russia
Sweden
Slovakia
Hungary
Denmark
GermanySwitzerland
BelgiumAustria
The Netherlands
France
Finland
UK
Italy
Norway
Czech
Republic
Estonia
LatviaLithuania
PortugalSpainIreland
Sources: *As presented in Euroconstruct, June 2010. **Growth estimates from Euroconstruct and VTT, June 2011
***Poland: historical output change calculated for 2008-09, ie. the year of lowest growth
Cramo countries
Theisen countries*
**
7
Rental recovery in EuropeNordic countries and Germany at the frontline of recovery
•Rental without operators
** Percentage of companies in a region expecting Q1/11 to grow vs. Q1/10
Sources: European Rental Association, June 2011 and International Rental News, May 2011
21,6
2524,3
20,1 19,920,6
0
5
10
15
20
25
30
2006 2007 2008 2009 2010E 2011F
European Equipment R
ental market value (EUR bn)
Size of European Equipment Rental Market*
Growth in 2010 and 2011:
Germany: +6%
Sweden: +4%
Europe: -1%
+5%
+8%
+3%
Growth per country/region**
-100 %
-80 %
-60 %
-40 %
-20 %
0 %
20 %
40 %
60 %
80 %
100 %
Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11
8
Confidence among rental companiesConfidence stabilising and positive, but mixed country-level results
Source: ERA / IRN Rental Tracker Survey June 2009 – April 2011 (International Rental News)
Improving
conditions
Declining
conditions
Current rental business conditions in Europe
9
Europe’s debt crisis
� The recent debt crisis in certain eurozone
countries has increased the uncertainty of near-
term future economic development in Europe
� The crisis has led to lower business confidence
and increased the risk levels associated also
with Cramo’s business operations
� The increased risk level will be taken into
account in Cramo’s business planning
10
Leading European Rental companies 2010Incl. Theisen Group, Cramo grew to #2 position in Europe in early 2011
Areas of operation
Construction equipment, tools
Construction equipment, tools
Construction equipment,
tools, modular space
Construction equipment, tools
Construction equipment, tools
Construction equipment
Cranes
Construction equipment
Source: International Rental News, June 2011
Type of operation
Europe, North America, Asia
FRA, IRE, UK, GER, SPA, BEL,
SWI, LUX, DEN
FIN, SWE, NOR, DEN, RUS,
EST, LAT, LIT, POL, HUN, UKR,
CZE, SLO
FIN, SWE, NOR, DEN, RUS, EST,
LAT, LIT, POL, CZE, SLO (GER,
AUT, SWI, HUN from 02/11)
Worldwide
Germany, Poland, Spain
Germany, France, Spain, Austria,
Switzerland, UK
(France)
(Finland)
(Finland)
(Belgium)
(US)
(UK)
(Germany)
(France)
(France)
(Germany)
UK, IRE
France
FranceCranes, construction
equipment
Modular space
703
503
492
485
403
384
305
292
280
265
0 200 400 600 800
Loxam
Ramirent
Cramo
Algeco Scotsman
Speedy Hire
Sarens
Liebherr Mietpartner
Kiloutou
Mediaco Levage
HKL Baumaschinen
European Sales 2010 (EUR million)European Sales 2010 (EUR million)
11
Q2 / 2011
Group performance
83
,6
96
,7 10
5,5 11
6,6
10
7,3
11
6,4 12
9,0 1
43
,8
12
6,8
15
4,0
15
5,7
14
3,3
10
6,9
10
9,3
11
5,1
11
5,4
10
1,4 11
4,0
13
0,4
14
6,4
14
4,2
16
1,1
0
20
40
60
80
100
120
140
160
180
Q1
/06
Q2
/06
Q3
/06
Q4
/06
Q1
/07
Q2
/07
Q3
/07
Q4
/07
Q1
/08
Q2
/08
Q3
/08
Q4
/08
Q1
/09
Q2
/09
Q3
/09
Q4
/09
Q1
/10
Q2
/10
Q3
/10
Q4
/10
Q1
/11
Q2
/11
Quarterly sales (EUR m
illion)
12
Cramo quarterly sales development Q2/11 sales increased 41,4% (46,4% in local currency) vs. Q2/10
* Change in local currencies
Q2 vs.
Q1/11:
11,7%
Quarter y-o-y:
41,4% (46,4%*)
13
Cramo quarterly EBITA development Profitability improved compared to Q2/10
Note: EBITA in Q1/11 includes non-recurring costs related to the acquisition of the Theisen Group amounting to EUR 2,1m, whereas
EBITA in Q1/2010 included a net capital gain from certain modular space sales amounting to EUR 5,7m
EBITA, EUR million
1-6/
2010
1-6/
2011 Difference
Reported Group EBITA 5,3 16,8 +11,5
Excluding non-recurring items:
Capital gain in Q1/2010* 5,7
Theisen acquisition costs in Q1/2011** -2,1
EBITA excl. non-recurring items -0,5 18,8 +19,3
Impact of Theisen Group*** 0,5
EBITA excl. non-recurring items and Theisen -0,5 18,4 +18,9
14
EBITA impacted by non-recurring items Comparable EBITA improved by about EUR 19m in H1/11 relative to
previous year
* Non-recurring capital gain in Q1/2010 included capital gains on the sale of certain used modular space
units
** Non-recurring costs in Q1/2011 included approximately EUR 2,1 million of costs related to the
acquisition of the Theisen Group
*** Business Segment Central Europe (Theisen Group) has been consolidated into Cramo Group as of
February 1, 2011
15
Quarterly EPS performance (diluted)Q2/11 EPS* was positive and improved clearly compared with Q2/10
* Due to the rights issue completed in April 2011, the earnings per share (EPS) figures for the previous periods have been adjusted by
multiplying the numbers of shares used in the calculations by the following adjustment factor: fair value per share before exercise of
rights divided by the theoretical ex-rights value per share
Note: Q4/09 includes write-downs on Group goodwill and intangible assets resulting from acquisitions totalling EUR 21,8m
16
Capital ExpenditureIncreased CapEx in H1/2011 was driven by strategic acquisitions*
(EUR 117,2m) and organic investments (EUR 71,2m)
* Acquisitions include Theisen Group completed in Q1/11 and Tidermans and Stavdal completed in Q2/11
17
Cash flow Cash flow from operations was EUR 32,4m in H1/2011, while acquisitions
and investments are reflected in the negative cash flow after investments
Note: Cash flow after investments includes acquisitions
18
Sales to tangible assets improving Still potential to improve
0 %
20 %
40 %
60 %
80 %
100 %
120 %
0
100
200
300
400
500
600
700
Q4-
2006
Q1-
2007
Q2-
2007
Q3-
2007
Q4-
2007
Q1-
2008
Q2-
2008
Q3-
2008
Q4-
2008
Q1-
2009
Q2-
2009
Q3-
2009
Q4-
2009
Q1-
2010
Q2-
2010
Q3-
2010
Q4-
2010
Q1-
2011
Q2-
2011
Sales, R
12m / T
angible assets, %
Sales or Tangible assets, E
UR m
Sales, R12m Tangible assets Sales / tangible assets
319356 352 365
433
516 514477 482
429413
384 375 382 381 382
463430
106,9 %
118,4 %
109,1 %109,4 %
126,5 %
151,3 %147,1 %149,3 %
155,6 %
121,5 %
113,1 %113,4 %108,4 %
111,7 %107,5 %
103,4 %
124,2 %
91,8 %
0 %
20 %
40 %
60 %
80 %
100 %
120 %
140 %
160 %
180 %
0
100
200
300
400
500
600
700
800
900
1 000
Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11
Gearin
g %
Net interest-bearing liabilities (EUR m)
Net interest-bearing liabilities Gearing %
19
Strengthening capital structureGearing decreased as a result of the rights issue completed in April
20
� The Rights Issue was completed according to plan in April 2011
� The Issue was oversubscribed
� 97,2% of the offered shares were subscribed for with subscription rights;
the remaining shares were subscribed for without subscription rights
� Total subscription level in the Rights Issue was 175,6%
� As a result of the Rights Issue, the number of Cramo’s shares
outstanding increased by 9,489,877 to 41,122,798 shares
� Excluding 316,288 treasury shares held by Cramo
� The total net proceeds of the Rights Issue amounted to EUR 97,4m
� Proceeds of the Issue will be used to further support Cramo's business
Successful Rights Issue completedA solid base for Cramo’s business
21
Q2 / 2011
Business segments
Finland19,2 %
Sweden45,3 %
Norway12,1 %
Denmark4,5 %
Central Europe
9,9 %
Eastern Europe
9,0 %
22
Sales by business segmentTheisen acquisition will balance geographic sales mix
EUR 305,4 million EUR 215,4 million
Sales 1-6/2011 Sales 1-6/2010
* Business Segment Central Europe was formed as of February 1, 2011 as a result of the acquisition of the Theisen Group. The
Business Segment includes Cramo’s operations in Germany, Austria, Switzerland and Hungary. Central Europe figures are included
for February-June 2011
*
Finland19,1 %
Sweden51,4 %
Norway14,8 %
Denmark5,7 %
Eastern Europe
9,0 %
23
FinlandSales growth continued, profitability improved
� Sales growth continued in Q2/11
� Construction and rental recovery continued
� Outsourcing agreements signed in 2010 contributed
to growth
� Demand for modular space remained steady
� Profitability improved compared to previous year
� In industrial construction, demand is the highest in
the energy and mining sectors
� The Group’s new reporting system was introduced
during the period
� Fleet utilisation rates were at a good level, fleet
investments increased
� Euroconstruct* construction growth forecast +4% in
2011 (RT** +5%)
Highlights Sales by quarter
* Euroconstruct, June 2011
** Rakennusteollisuus RT, April 2011
EBITA by quarter
27,7
33,1
34,0
31,5
23,3
22,6
23,8
22,4
19,1 2
2,7 2
7,4 30,4
28,2 31,3
0
5
10
15
20
25
30
35
40
Q1 Q2 Q3 Q4
Quarterly sales (EUR m
)
2008
2009
2010
2011
3,7
6,1
9,7
6,8
0,9 1
,8
4,3
3,7
0,6
2,5
6,1
3,3
2,2
4,2
0
2
4
6
8
10
12
Q1 Q2 Q3 Q4
Quarterly EBITA (EUR m
)
2008
2009
2010
2011
Change Change
(EUR 1 000) % %
Sales 31 271 22 694 37,8 % 59 461 41 751 42,4 % 99 583
EBITA 4 248 2 546 66,9 % 6 424 3 096 107,5 % 12 466
EBITA-% 13,6 % 11,2 % 10,8 % 7,4 % 12,5 %
1-12/
2010
4-6/
2011
4-6/
2010
1-6/
2011
1-6/
2010
Change Change
(EUR 1 000) % %
Sales 72 488 60 602 19,6 % 140 589 112 498 25,0 % 251 857
EBITA 13 566 8 835 53,5 % 22 911 14 254 60,7 % 41 186
EBITA-% 18,7 % 14,6 % 16,3 % 12,7 % 16,4 %
4-6/
2011
4-6/
2010
1-6/
2011
1-6/
2010
1-12/
2010
24
Sweden Favourable development in sales and profitability
� Sales increased by 19,6% compared to Q2/10
(11,6% in local currency)
� Strong increase in construction activity and
industrial investments boosted growth in sales
� Growth was particularly strong in the Stockholm
area and Southern Sweden
� Growth in euros was boosted by the Swedish krona
that remained stronger year-on-year
� Profitability developed favourably and EBITA
improved compared to previous year
� Fleet utilisation rates were at a good level and
investments continued, both organically and
through the acquisition of Tidermans
� Euroconstruct** estimates construction growth to be
5%** in 2011 (BI*** 8%)
* Change in sales measured in local currency
** Euroconstruct, June 2011
*** Sveriges Byggindustrier, June 2011
Highlights
14,1%*(local curr.)
Sales by quarter
EBITA by quarter
11,6%*(local curr.)
62,7
73,8
70,7
66,7
50,1
53,0
55,3
57,4
51,9 6
0,6 64,8
74,5
68,1 72,5
0
10
20
30
40
50
60
70
80
Q1 Q2 Q3 Q4
Quarterly sales (EUR m
)
2008
2009
2010
2011
13,1
16,9 1
8,9
14,1
7,3
9,8 1
1,1
7,8
5,4
8,8
12,3 1
4,6
9,3
13,6
02468
10121416182022
Q1 Q2 Q3 Q4
Quarterly EBITA (EUR m
)
2008
2009
2010
2011
Change Change
(EUR 1 000) % %
Sales 17 378 15 332 13,3 % 37 582 32 429 15,9 % 69 120
EBITA -1 150 -303 -279,6 % -735 -406 -81,1 % 303
EBITA-% -6,6 % -2,0 % -2,0 % -1,3 % 0,4 %
1-12/
2010
4-6/
2011
4-6/
2010
1-6/
2011
1-6/
2010
25
NorwaySales grew but profitability weakened in a weaker than expected market
� Sales increased by 13,3% compared to previous
year in Q2/11 (12,3% in local currency)
� Recovery in construction has been below industry
expectations; upswing is expected later in 2011
� EBITA declined compared to previous year
� Q2/11 includes expenses related to unprofitable
projects
� Measures aimed at improving profitability were
continued through reorganisation of operations
� However, the result of the Norwegian operations
improved by the end of the period
� In line with its “Best in town” strategy, Cramo
acquired all shares in Stavdal Utleiesenter AS
� Euroconstruct** estimates construction to increase
by 6% in 2011.
* Change in sales measured in local currency
** Euroconstruct, June 2011
Highlights Sales by quarter
EBITA by quarter
13,3%*(local curr.)
12,3%*(local curr.)
15,6 1
8,6
18,2
17,2
15,8
15,7
15,6
16,3
17,1
15,3 17,0 1
9,7
20,2
17,4
0
5
10
15
20
25
Q1 Q2 Q3 Q4
Quarterly sales (EUR m
)
2008
2009
2010
2011
0,9
2,4
2,3
0,6
1,2
1,1
0,9
0,9
-0,1
-0,3
0,3 0,4
0,4
-1,2
-2
-1
0
1
2
3
Q1 Q2 Q3 Q4Quarterly EBITA (EUR m
)
2008
2009
2010
2011
26
DenmarkSales developed positively, EBITA continued to improve
� Sales increased by 15,2% in Q2/11 compared to
previous year and by 23,9% compared to Q1/11� Construction activity decreased more than expected in
2010 but the industry’s outlook for 2011 is cautiously
positive
� Slower than expected rate of recovery in construction
also affected Cramo’s sales and profit. After the harsh
winter, sales developed positively in the spring
� EBITA improved compared to previous year but
was still negative� Fleet utilisation rates improved
� Balance between the demand for and supply of rental
equipment achieved after the downturn
� Profitability expected to improve further during 2011
� Euroconstruct* estimates construction output to
improve nearly 3% in 2011. Dansk Byggeri**
expects a further decline of 1% in 2011
* Euroconstruct, June 2011
** Dansk Byggeri, February 2011
Highlights Sales by quarter
EBITA by quarter
10,5 1
1,9
11,8
10,3
8,5 8,8 9
,7
9,3
5,7 6
,7
8,4 8,6
6,3
7,8
0
2
4
6
8
10
12
14
Q1 Q2 Q3 Q4
Quarterly sales (EUR m
)
2008
2009
2010
2011
-0,2
0,5
0,2
-3,4
-1,7 -1
,2
-1,6
-4,4
-3,2
-1,3 -0
,8
0,0
-1,6
-0,6
-5
-4
-3
-2
-1
0
1
Q1 Q2 Q3 Q4
Quarterly EBITA (EUR m
)
2008
2009
2010
2011
Change Change
(EUR 1 000) % %
Sales 7 750 6 728 15,2 % 14 007 12 468 12,3 % 29 493
EBITA -646 -1 268 49,0 % -2 281 -4 491 49,2 % -5 328
EBITA-% -8,3 % -18,8 % -16,3 % -36,0 % -18,1 %
4-6/
2011
4-6/
2010
1-6/
2011
1-6/
2010
1-12/
2010
27
Central Europe*Sales increased and EBITA turned clearly positive in Q2/11
� Sales in April-June 2011 amounted to EUR 19,9m
� Market situation in equipment rental improved compared to the previous year in all markets
� Stronger than expected development of the German economy in H1 was reflected in rental demand
� Demand developed positively also in Austria
� EBITA in April-June turned clearly positive, amounting to 1,6m (8,2% of sales)
� After the winter season, Q2 result developed positively
� The segment is more strongly affected by seasonal fluctuations due to focus on construction equipment
� Fleet investments continued as planned
� Euroconstruct** forecasts construction growth of nearly 2% in 2011 in Germany, 1% in Switzerland, 0% in Austria and -3% in Hungary
* Business Segment Central Europe was formed as of February 1, 2011 as a result of the acquisition of the Theisen Group. The Business
Segment includes Cramo’s operations in Germany, Austria, Switzerland and Hungary
** Euroconstruct, June 2011
Highlights Sales by quarter
EBITA by quarter
Change Change
(EUR 1 000) % %
Sales 19 945 - - 30 556 - - -
EBITA 1 640 - - 451 - - -
EBITA-% 8,2 % - 1,5 % - -
1-12/
2010
4-6/
2011
4-6/
2010
1-6/
2011
1-6/
2010
10,6
19,9
0
5
10
15
20
25
Q1 Q2 Q3 Q4
Quarterly sales (EUR m
)
2008
2009
2010
2011
-1,2
1,6
-2
-1
0
1
2
Q1 Q2 Q3 Q4Quarterly EBITA (EUR m
)
2008
2009
2010
2011
Change Change
(EUR 1 000) % %
Sales 14 999 10 698 40,2 % 27 868 19 712 41,4 % 49 886
EBITA -1 524 -4 047 62,4 % -3 741 -8 886 57,9 % -11 464
EBITA-% -10,2 % -37,8 % -13,4 % -45,1 % -23,0 %
4-6/
2011
4-6/
2010
1-6/
2011
1-6/
2010
1-12/
2010
28
Eastern Europe*Sales continued to grow strongly, EBITA improving but still negative
� Sales in Q2/11 grew strongly by 40,2% compared to Q2/10 (41,0% in local currency)
� Construction growth seen in H2/10 continued in most markets; strongest rates of growth seen in Estonia, Poland and the Moscow region in Russia
� Residential construction and energy sector investments have increased construction activity in Estonia and Lithuania
� Cramo’s year-on-year sales increased in all markets
� EBITA improved but remained negative in Q2/11
� Profitability developed favourably in all markets as a result of sales growth and adjustments concluded in previous years
� Euroconstruct*** forecasts double-digit construction growth in 2011 in Estonia and Poland, 5-7% growth in Lithuania and Russia, 0% in Latvia and a 1-2% decline in the Czech Republic and Slovakia
* Includes Estonia, Latvia, Lithuania, Poland, the Czech Republic, Slovakia and Russia. Until 31 December 2010, the name of the segment
was Central and Eastern Europe
** Change in sales measured in local currency
*** Euroconstruct, June 2011
Highlights Sales by quarter
EBITA by quarter
40,6%**(local curr.)
41,0%** (local curr.)
14,2
19,9
23,6
19,8
10,4
10,4 12,0
11,3
9,0 1
0,7
14,4 15,8
12,9 15,0
0
5
10
15
20
25
Q1 Q2 Q3 Q4
Quarterly sales (EUR m
)
2008
2009
2010
2011
1,5
2,8
5,4
0,2
-4,9 -4,5
-3,0
-5,2
-4,8 -4
,0
-1,5 -1,1
-2,2 -1
,5
-6
-4
-2
0
2
4
6
Q1 Q2 Q3 Q4Quarterly EBITA (EUR m
)
2008
2009
2010
2011
29
Execution of Cramo’s strategy
Must-Win Battles for 2010-13
11• Renew Cramo Concept: Roll out the renewed
Cramo Concept to all Cramo markets• Renew Cramo Concept: Roll out the renewed
Cramo Concept to all Cramo markets
22• Implement Cramo Processes: Implement
unified Cramo Processes throughout the Group• Implement Cramo Processes: Implement
unified Cramo Processes throughout the Group
33• Develop Cramo People: Develop Cramo
People to be passionate rental business champions
• Develop Cramo People: Develop Cramo People to be passionate rental business champions
44• Be “Best in Town”, Win Next Markets:
Penetrate successfully new geographic markets
• Be “Best in Town”, Win Next Markets: Penetrate successfully new geographic markets
55• Drive Modular Space Growth: Drive profitable
growth in non-construction modular space outside Finland and Sweden
• Drive Modular Space Growth: Drive profitable growth in non-construction modular space outside Finland and Sweden
Acquisitions
in H1/2011
Acquisitions
in H1/2011
Implementing ”Best in town” strategyTwo acquisitions completed in June
Oslo area, Norway
• In June 2011, Cramo acquired all shares in Stavdal
Utleiesenter AS in Norway
• One of the leading rental companies in the Oslo area
(Norway’s capital city) with four depots
• Specialises in equipment and construction machinery
rental services
• Sales in 2010 of approximately EUR 7,3m with a total of
25 employees
Gothenburg area, Sweden
• In June 2011, Cramo acquired all shares in Tidermans
Hyrmaskiner AB and Tidermans Hyrmec AB
• One of the largest regional rental operators in Western
Sweden with five depots in the Gothenburg area
• General rental company, with a product mix focused
primarily on tools but also construction and access
• The combined sales of the acquired operations was about
EUR 14,2m in 2010 and the number of employees 63
• Cramo becomes a clear market leader in rental business
in the Gothenburg area, Sweden’s second largest city
31
Implementing ”Win next markets”Integration of Theisen Group
• The initial, focused ”100-day” integration plan of the Theisen Group was
successfully completed during Q2
– Focus on realising most important integration activities and ”quick wins” while
securing business growth and continuity
– Prioritised areas included organisation & HR, finance and reporting, fleet
management, IT and communications
• In May 2011, Mr Dirk Schlitzkus was appointed as Senior Vice President,
Central Europe and member of the Cramo Group management team and
Managing Director of Theisen Baumaschinen AG
– Mr Schlitzkus joined Theisen in 1994
– One of the driving forces behind the company’s fast expansion of rental depots in
Germany, Austria, Hungary and Switzerland
• Theisen integration process to be fully completed by the year-end
32
Well-established brand Growing rental business
Total solution providerModular space opportunities
Operational efficiency
Second largest equipment rental
solution provider in Europe
1.
2.
3.4.
5.
6.
Cramo’s strengths in executing its strategy
33
34
Future prospectsPositive market outlook for 2011, overshadowed by recent rapidly
increasing uncertainty
� The construction and equipment rental service markets are expected to grow stronger in almost all of Cramo’s market areas in 2011
� However, most recent economic development indicates increased uncertainty, and therefore market forecasts have to be interpreted with considerable caution
� Cramo anticipates stronger growth in the demand for rental services than in construction
� The recent debt crisis in certain eurozone countries has increased business risk levels
� The Group has modified its guidance. The new guidance is: “In spite of the increased market uncertainty, the Group’s sales in 2011 are expected to grow both organically and as a consequence of acquisitions. The Group’s EBITA margin will improve compared with 2010.”
Appendix
36
Key figures
Of note is that due to the rights issue completed in April 2011, the earnings per share (EPS) figures for the previous periods have been
adjusted by multiplying the numbers of shares used in the calculations by the following adjustment factor: fair value per share before exercise
of rights divided by the theoretical ex-rights value per share
Change Change
EUR (1 000) % %
INCOME STATEMENT
Sales 161 135 113 964 41,4 % 305 352 215 363 41,8 % 492 103
EBITDA 38 186 24 840 53,7 % 63 532 47 427 34,0 % 117 623
Operating profit (EBITA) before amortisation and impairment
of intangible assets resulting from acquisitions
14 334 3 766 280,6 % 16 789 5 269 218,6 % 34 478
Operating profit/loss (EBIT) 11 733 2 077 464,9 % 11 496 1 963 485,6 % 27 389
Profit/Loss before tax (EBT) 5 849 -4 176 240,1 % 1 887 -10 750 117,6 % 4 804
Profit/Loss for the period 3 422 -4 953 169,1 % -2 541 -12 353 79,4 % -2 203
SHARE-RELATED INFORMATION
Earnings per share (EPS), EUR 0,09 -0,15 160,0 % -0,07 -0,37 81,1 % -0,06
Earnings per share (EPS), diluted, EUR 0,08 -0,14 157,1 % -0,07 -0,36 80,6 % -0,06
Shareholders' equity per share, EUR 10,17 9,62 5,7 % 10,52
BALANCE SHEET
Equity ratio, % 41,7 % 38,0 % 38,7 %
Gearing, % 91,8 % 111,7 % 103,4 %
Net interest-bearing liabilities 429 631 382 188 12,4 % 382 032
OTHER INFORMATION
Return on investment, rolling 12-month, % 4,6 % -1,3 % 3,7 %
Return on equity, rolling 12-month, % 1,9 % -11,8 % -0,6 %
Gross capital expenditure (incl. acquisitions) 188 412 20 172 834,0 % 86 219
of which related to acquisitions and business combinations 117 240 4 128 2740,1 % 33 821
Cash flow after investments -98 325 18 092 -643,5 % 27 393
Average number of personnel (FTE) 2 465 2 033 21,2 % 2 083
Number of personnel at end of period (FTE) 2 686 2 084 28,9 % 2 131
1-12/
2010
4-6/
2011
4-6/
2010
1-6/
2011
1-6/
2010
37
Consolidated income statement
Change Change
EUR (1 000) % %
SALES 161 135 113 964 41,4 % 305 352 215 363 41,8 % 492 103
Other operating income 2 496 1 808 38,1 % 3 790 9 424 -59,8 % 15 110
Change in inventories of finished goods and
work in progress
-479 446 -207,4 % 101 719 -86,0 % 1 015
Production for own use 2 486 764 225,4 % 3 282 764 329,6 % 4 694
Materials and services -57 780 -39 382 -46,7 % -112 056 -76 164 -47,1 % -183 479
Employee benefit expenses -33 351 -25 847 -29,0 % -63 935 -49 632 -28,8 % -101 939
Other operating expenses -36 320 -26 912 -35,0 % -73 002 -53 046 -37,6 % -109 880
Depreciation and impairment on tangible
assets and assets available for sale
-23 853 -21 074 -13,2 % -46 743 -42 159 -10,9 % -83 145
EBITA 14 334 3 766 280,6 % 16 789 5 269 218,6 % 34 478
% of sales 8,9 % 3,3 % 5,5 % 2,4 % 7,0 %
Amortisation and impairment on intangible
assets resulting from acquisitions
-2 601 -1 689 -54,0 % -5 292 -3 306 -60,1 % -7 089
OPERATING PROFIT/LOSS (EBIT) 11 733 2 077 464,9 % 11 496 1 963 485,6 % 27 389
% of sales 7,3 % 1,8 % 3,8 % 0,9 % 5,6 %
Finance costs (net) -5 885 -6 252 5,9 % -9 609 -12 713 24,4 % -22 586
PROFIT/LOSS BEFORE TAXES 5 849 -4 176 240,1 % 1 887 -10 750 117,6 % 4 804
% of sales 3,6 % -3,7 % 0,6 % -5,0 % 1,0 %
Income taxes -2 427 -777 -212,4 % -4 428 -1 603 -176,2 % -7 007
PROFIT/LOSS FOR THE PERIOD 3 422 -4 953 169,1 % -2 541 -12 353 79,4 % -2 203
% of sales 2,1 % -4,3 % -0,8 % -5,7 % -0,4 %
1-12/
2010
4-6/
2011
4-6/
2010
1-6/
2011
1-6/
2010
38
Consolidated balance sheet30.6. 30.6. Change 31.12.
EUR (1 000) 2011 2010 % 2010
EQUITY AND LIABILITIES
EQUITY
Share capital 24 835 24 835 0,0 % 24 835
Other reserves 300 722 186 925 60,9 % 188 797
Fair value reserve 117 117 0,0 % 117
Hedging fund 538 -2 773 119,4 % -1 197
Translation differences 329 -3 079 110,7 % 3 426
Retained earnings 91 751 85 859 6,9 % 103 309
EQUITY ATTRIBUTABLE TO SHARE-
HOLDERS OF THE PARENT COMPANY 418 293 291 885 43,3 % 319 287
Non-controlling interest 503 -100,0 % 503
Hybrid capital 49 630 49 630 0,0 % 49 630
TOTAL EQUITY 467 923 342 018 36,8 % 369 420
NON-CURRENT LIABILITIES
Interest-bearing liabilities 367 985 331 915 10,9 % 346 776
Derivative financial instruments 467 5 456 -91,4 % 2 543
Deferred tax liabilities 88 548 73 409 20,6 % 78 348
Provisions 1 541
Other non-current liabilities 5 615 1 261 345,3 % 4 207
TOTAL NON-CURRENT LIABILITIES 464 156 412 040 12,6 % 431 875
CURRENT LIABILITIES
Interest-bearing liabilities 78 750 62 158 26,7 % 57 569
Derivative financial instruments 842 896 -6,0 % 1 853
Trade and other payables 117 519 84 650 38,8 % 100 984
Income tax liabilities 4 078 4 856 -16,0 % 3 997
TOTAL CURRENT LIABILITIES 201 190 152 560 31,9 % 164 403
TOTAL LIABILITIES 665 346 564 600 17,8 % 596 277
TOTAL EQUITY AND
LIABILITIES 1 133 269 906 618 25,0 % 965 697
30.6. 30.6. Change 31.12.
EUR (1 000) 2011 2010 % 2010
ASSETS
NON-CURRENT ASSETS
Tangible assets 603 656 508 210 18,8 % 526 326
Goodwill 171 386 143 368 19,5 % 147 998
Other intangible assets 128 106 91 002 40,8 % 102 001
Deferred tax assets 16 602 15 106 9,9 % 14 301
Available-for-sale financial investments 362 343 5,5 % 347
Derivative financial instruments 2 650 1 053
Trade and other receivables 3 733 2 986 25,0 % 3 613
TOTAL NON-CURRENT ASSETS 926 496 761 016 21,7 % 795 638
CURRENT ASSETS
Inventories 17 988 13 166 36,6 % 13 803
Trade and other receivables 157 685 105 059 50,1 % 125 333
Income tax receivables 7 424 12 481 -40,5 % 5 114
Derivative financial instruments 246 218 12,8 % 825
Cash and cash equivalents 17 104 11 885 43,9 % 22 313
TOTAL CURRENT ASSETS 200 447 142 808 40,4 % 167 388
Assets available for sale 6 327 2 795 126,4 % 2 671
TOTAL ASSETS 1 133 269 906 618 25,0 % 965 697
39
Cash flow statement
1-6/ 1-6/ 1-12/
EUR (1 000) 2011 2010 2010
Net cash flow from operating activities 32 357 11 226 68 333
Net cash flow from investing activities -130 682 6 866 -40 940
Cash flow from financing activities
Change in interest-bearing receivables 111 68 -610
Change in finance lease liabilities -17 475 -19 425 -35 309
Change in interest-bearing liabilities 15 094 275 15 952
Hybrid capital -6 000 -6 000 -6 000
Proceeds from share options exercised 7 262 1 871
Proceeds from share issue 97 397
Non-controlling interest -76
Dividends paid -3 163
Net cash flow from financing activities 93 150 -25 081 -24 095
Change in cash and cash equivalents -5 175 -6 989 3 298
Cash and cash equivalents at period start 22 313 18 520 18 520
Translation differences -34 354 495
Cash and cash equivalents at period end 17 104 11 885 22 313
40
Segment performance
Change Change
SALES, EUR (1 000) % %
Finland 31 271 22 694 37,8 % 59 461 41 751 42,4 % 99 583
Sweden 72 488 60 602 19,6 % 140 589 112 498 25,0 % 251 857
Norway 17 378 15 332 13,3 % 37 582 32 429 15,9 % 69 120
Denmark 7 750 6 728 15,2 % 14 007 12 468 12,3 % 29 493
Central Europe 19 945 30 556
Eastern Europe 14 999 10 698 40,2 % 27 868 19 712 41,4 % 49 886
Inter-segment sales -2 695 -2 092 -28,8 % -4 712 -3 495 -34,8 % -7 837
Group sales 161 135 113 964 41,4 % 305 352 215 363 41,8 % 492 103
Change Change
EBITA, EUR (1 000) % %
Finland 4 248 2 546 66,9 % 6 424 3 096 107,5 % 12 466
Sweden 13 566 8 835 53,5 % 22 911 14 254 60,7 % 41 186
Norway -1 150 -303 -279,6 % -735 -406 -81,1 % 303
Denmark -646 -1 268 49,0 % -2 281 -4 491 49,2 % -5 328
Central Europe 1 640 451
Eastern Europe -1 524 -4 047 62,4 % -3 741 -8 886 57,9 % -11 464
Non-allocated capital gains and other income 5 746 -100,0 % 5 746
Non-allocated Group activities -1 904 -1 931 1,4 % -6 388 -4 004 -59,5 % -8 380
Eliminations 103 -66 256,1 % 148 -39 479,5 % -52
Group EBITA 14 334 3 766 280,6 % 16 789 5 269 218,6 % 34 478
1-12/
2010
4-6/
2011
4-6/
2010
1-6/
2011
1-6/
2010
1-12/
2010
4-6/
2011
4-6/
2010
1-6/
2011
1-6/
2010
41
Modular space order book Order book increased clearly from Q1/11
*In Q1/2010 there was an external sale of some modules
