cramo plc · p 5 cramo group in brief finland sweden norway denmark central and eastern europe...

1

CRAMO PLCCAPITAL MARKETS DAY

CRAMO’S BUSINESS MODEL AND STRATEGY 2010-13VESA KOIVULAPRESIDENT AND CEOSEPTEMBER 1, 2010

POWERING YOUR BUSINESS

p 2

Cramo capital markets day – Agenda

13.00 Introduction Vesa Koivula, CEOCramo’s business model and Group strategy 2010-13

13.30 Financial overview and Must-win battles Martti Ala-Härkönen, CFO2010-13

Business segment overviews

14.00 Finland Tatu Hauhio, SVP, Finland

14.25 Sweden Erik Bengtsson, SVP, Sweden

14.50 Norway Finn Lökken, SVP, Norway

15.15 Coffee break

15.30 Denmark and CEE: Poland and Czech Göran Carlson, Deputy CEO

16.00 CEE: Baltics and Russia Jarmo Laasanen, SVP, Baltics and Russia

16.20 Fleet management: Equipment rental Martin Holmgren, VP, Fleet management, ER

16.40 Modular space strategy Ossi Alastalo, VP, Fleet management, MS

17.00 Summary, Q&A Vesa Koivula, CEO

17.15 Closing

17.30 Evening program, dinner

p 3

General disclaimer

• Cramo Group’s Capital Market Day presentations held on September 1, 2010 include certain forward-looking statements based on the management’s expectations at the time they are made. These involve risks and uncertainties and are subject to change due to changes in general economic and industry conditions.

p 4

Group overview and strategy 2010-13

• Cramo Group today

• Rental growth drivers

• The Cramo Concept

• Cramo Group strategy 2010-13

p 5

Cramo Group in brief

� Finland� Sweden� Norway� Denmark� Central and Eastern Europe

� Sales 215,4 MEUR (-0,4 %)� EBITA 5,3 MEUR (-16,7 %)� EPS, diluted EUR -0,40 (EUR -0,37)

� 283 depots� 11 countries

� 2.084 (2.402)

Business segments

Key financialsH1 / 2010

Depotnetwork

Personnel

No. of rentalequipment

� Approximately 180.000

� Founded in 1953� Listed on the Helsinki Stock Exchange

since 1988, on the main list since 1998� Modular space as the second business

segment since 2000� Acquisition of Cramo on January 1, 2006;

Name change to Cramo plc on November24, 2006

History

Russia

Denmark

GermanyPoland

CzechRepublic

AustriaHungary

Slovakia

Ukraine

Belarus

Lithuania

Latvia

Estonia

Norway

Sweden

Finland

Romania

Moldova

St. Petersburg

Bulgaria

Slovenia

Croatia

Bosnia and Herzegovina

Serbia

Macedonia

Albania

Moscow Yekaterinburg

Number of depots06/2010: 283

p 6

Other;

10 %

Modular

space;

32 %

Access

equipment;

23 %

Construction

equipment;

11 %

Tools;

24 %

Other ;

4 %

Households;

3 %

Public sector;

18 %

Other industry;

23 %

Construction

industry;

53 %

Sales by product and customer segmentAccording to strategy, the share of industry, public sector & modular space increasing

Sales by customer segment 2009 (2008) Sales by product area 2009 (2008)

(58 %)

(21 %)

(14 %)

(4 %)

(4 %)

(25 %)

(12 %)

(26 %)

(27 %)

(10 %)

p 7






p 8

Why rent?Rental provides customers additional resources, increasing

competitiveness with rental solutions

Cost efficiency

Share costs with others and reduce fixed cost

Freedom

Turning fixed costs into variable

Flexibility

Reduce or expand machinery according to needs

Transparency

Budgeting and control get easier

Focus on core

business

Machinery is normally non-core for our customers

Improved access

Access to a variety of modern, high quality products and services without keeping stock

p 9

Main growth drivers in the rental business

Growth drivers

Increasing rental penetration

Growing construction market

Rental related services

Outsourcing

Technological innovation

Consolidation

Demographic changes

1.

2.

3.

4.

5.

6.

7.

p 10

-10 %

-5 %

0 %

5 %

10 %

15 %

20 %

25 %

30 %

35 %

-60 % -50 % -40 % -30 % -20 % -10 % 0 % 10 %

Construction output loss, cumulative % from peak to trough

Const

ruct

ion o

utp

ut g

row

th 2

010-1

2, c

um

ula

tive %

Growing construction marketRecovery in European construction

Higher extent of construction output loss in recession

Fasterspeedof re

coveryfro

mrecession

Poland

Russia

Sweden

Slovakia

HungaryDenmark

GermanySwitzerland

Belgium

AustriaThe Netherlands

FranceFinland

UK

Italy Norway

CzechRep.

Estonia

Latvia

Lithuania

Portugal

SpainIreland

”Star performer”

Fast recovery

Slow recovery Modest recovery / mild recession

Prolongedcontraction

Fast-modest recoveryafter very severe

recession

1.

Source: Euroconstruct, June 2010*Poland: historical output change calculated for 2008-09, ie. the year of lowest growth

p 11

Increasing rental penetrationRental penetration* expected to rebound

Source: European Rental Association, Spring 2010 and Cramo estimates*Construction industry penetration measured as: Total rental market (rental turnover) in country / Total output of the constructionsector in country

0,0 %

0,5 %

1,0 %

1,5 %

2,0 %

2,5 %

3,0 %

3,5 %

4,0 %

4,5 %

5,0 %

Fin

land

Sw

eden

Norw

ay

Denm

ark

Belg

ium

Fra

nce

Germ

any

Italy

Neth

erlands

Spain

UK

Rental penetration % (Construction industry penetration)

2006 2007 2008E 2009E 2010F 2011F

Current levelof most CEE markets

2.

p 12

0

200

400

600

800

1 000

1 200

1 400

1 600

1 800

2 000

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Machinery & equipment (NBV)

0 %

1 %

2 %

3 %

4 %

5 %

6 %

Machinery & equipment (N

BV) to

total sales

NBV of machinery & equipment Median of NBV of mach & equip. to sales

Increasing outsourcing of equipment fleetFleet reductions in Nordic construction; declining trend in fleet

relative to sales since year 2000

• Bautas sale• Altima sale

• Peab Industri ”listingand de-listing”

• Substantial fleetinvestments in 2008 in many companies

• Sharply decliningsales in constructionin 2009

Note: Companies included: 1995-09: YIT, Lemminkäinen, NCC, Peab; 1998-09: in addition Skanska, JM, Veidekke

Source: Corporate reports

• Several new outsourcing deals in the Nordicconstruction sector in the first part of 2010

3.

p 13

Technological development in constructionSubstitution of manpower vs. technology in construction

supporting productivity gains

0

10

20

30

40

50

60

70

801995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Labor productivity in construction (Gross value added / employee)

Finland Sweden Norway Denmark

0

2

4

6

8

10

12

14

16

18

20

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Labor productivity in construction (Gross value added / employee)

Estonia Latvia Lithuania Poland Czech Slovakia

Source: Eurostat

4.

p 14

Rental related servicesConstruction companies purchase an increasing amount of external

servicesExample: Finnish construction sector

Source: Statistics Finland

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Costs of external services purchased by construction

companies (EUR m

)

0,0 %

5,0 %

10,0 %

15,0 %

20,0 %

25,0 %

30,0 %

External services as %

of sales

External services External services as % of sales

5.

p 15

Demographic changesPopulation growth, migration, urbanization, aging creating demand

for construction as well as modular space rental

Example: Migration in Finland

Source: Statistics Finland

6.

0

100

200

300

400

500

600

700

800

900

1 0001987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Migration patterns (thousands of people)

Migration within municipalities Migration between municipalities Net immigration

p 16

27,5 % 26,7 % 29,4 %

14,7 % 17,5 %17,6 %

57,8 % 55,8 % 53,0 %

0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %

90 %

100 %

2000/01 2004/05 2008/09

Share of sales of European top-50 rental companies

Top-5 companies 6-10 companies 11-50 companies

Rental market consolidation activityShare of sales of top-50 European rental companies –

top 10 slowly increasing

Source: International Rental News

7.

p 17






p 18

Cramo Concept

Cramo as a companyCramo as a company

• A full range of machinery and equipment needed in the construction industry

• Solutions offered also to other industries and the public sector

• Temporary facilities for, e g, offices, schools, accommodation & storage

• Rental related services, customized solutions, support, instructions and training

Total solution providerTotal solution provider

• We have one, common brand and work systematically to retain its strength

• We use our size and country network to our benefit

• We are a leader in delivering and demonstrating customer value

p 19

Rental agreements for every situation

Long term

rental

Access to equipment over a longer period including services and maintenance, with less capital tied up

Outsourcing

A strategic two-way commitment where Cramo takes ownership of a customer’s fleet of machinery and rents it back including a mixture of short and long term solutions.

Guaranteed access to equipment and services in a project

Project rental

Equipment from the depot for immediate, short term needs

Short term

rental

p 20

Leverage local business know-how

� Leadership

� Customer know-how

� Service know-how

� Local expertise

� Entrepreneurship

Leverage Group synergies

� Fleet optimization and Purchasing through Fleet Management

� IT, systems and processes

� Cramo Brand

� Common KPI’s and reporting procedures

� Financial flexibility and strength

Geared to compete in fast changing environments

Business Agility

Leverage operational agility

� Fleet mobility

� Timely decision making

� Adapting to customer needs

Business agility

� Flexible financial solutions

� Network/project organisation

� Fixed � variable cost

p 21






p 22

1953 1975 200520001990 1995

Local

growth

OTC listing

(1988)

Listing on the

Helsinki

Exchanges

main list

(1998)

Acquisition of

Cramo Group

(2006)

Acquisition of

Suomen

Projektivuokraus

(2003),

internationalisation

starts with Russia

Estonia and Poland

Entry into modular

space through

Tilamarkkinat

acquisition (2000)

Cramo development stages

Domestic growth

Domestic

consolidation / start

internationalisation

International growth

€ 334 m

€ 54 m

€ 17 m

€ 1 m

Sales(€m)

Company

founded

(1953)

Early 1990srecession

Cramo Group growth history: 1953-2010

€ 580 m

2010

Several

acquisitions and

outsourcing

deals in the

Nordic countries

and CEE;

dedicated fleet

investmetns

€ 447 m

Severefinancial and economic

crisis(2008-09)

p 23

Strategic and operational development 2006-

2006-08 2009-H1/2010 H2/2010-

• High profitable growth• Focus on:

– integration of the Cramo acquisition

– growth into Eastern Europe while exiting Netherlands, both organically and through acquisitions

– grow market shares while maintaining good profitability

– achieve leadership in rental business development

• Recognition: Rental company of the year in 2008 (ERA price given for the first time)

• Economic downturn

• Focus on: – strong cash flow after

investments and clear net debt reduction

– cost adjustments in all OpCos, while maintaining best possible profitability

– adding flexibility and efficiency

– group-wide fleet optimisation

• Maintain innovativeness: Continuous development of new offerings and concepts

• Maintain strong market position on which to capitalise when the new growth phase begins

• New growth phase

• New strategy 2010-13– focus on further optimising

on Group synergies and Cramo’s unified business model

– focus on further profitable growth while rolling out Cramo’s core competences, and in winning next markets

p 24

Strategic targets 2010 – 2013

Strategic

targets

2010-13

Strategic

targets

2010-13

• Customer’s first choice

• Best in town: #1 or possibility to become #1

• Grow profitably faster than the market

• Driver of rental development

• Customer’s first choice

• Best in town: #1 or possibility to become #1

• Grow profitably faster than the market

• Driver of rental development

p 25

Strategic target #1:

Customer’s first choice

0

10

20

30

40

50

60

70

80

90

100

1999 2002 2004 2006 2008 2009

Cramo customer satisfaction index

The Positive Customer Index Trend*

Source: Cramo Group customer satisfaction survey

p 26


“Best in Town”

What is meant with “Best in Town”:

• Cramo strives to be Best in each “Town” of operation

• ”Best in Town” means being the leadingrental solutions provider in a homogenouslocal market, e g, city, district or region

The analysis:

• Evaluation of current situation• Ranking of locations based on internal and

external criteria, including current marketposition and profitability

• Action plans per depot to address gaps in market position or profitability

• List of candidate depots for • Expansion and development• Change in mode of operations (eg.

franchising)• Closure

Russia

Denmark

GermanyPoland

CzechRepublic

AustriaHungary

Slovakia

Ukraine

Belarus

Lithuania

Latvia

Estonia

Norway

Sweden

Finland

Romania

Moldova

St. Petersburg

Bulgaria

Slovenia

Croatia

Bosnia and Herzegovina

Serbia

Macedonia

Albania

Moscow Yekaterinburg

p 27


Grow profitably faster than the market

20,4 %

23,4 %

16,8 %

-23,0 %

21,1 %

16,2 %

7,9 %

-20,0 %

-30 %

-20 %

-10 %

0 %

10 %

20 %

30 %

2006 2007 2008 2009

Sales growth %

Cramo IRN Europe top 50

Source: IRN Europe top 50 from International Rental News

Note: Cramo 2006 growth is pro forma. Actual 2006 growth +422,6%, including acquisition of the Cramo Group

p 28


Driver of rental developmentExamples of new concepts:

• Cramo Smart Energy (Building site energy savings concept)

• Cramo 24 (Around-the-clock service)• Cramo Flexi (tool rental concept/package

deal)• Cramo Safety (work environment at the

construction site)• Insurance• Cramo Road Show (mobile trade fair)• Living Depot (supplier days at depots)• Cramo Bonus (loyalty program for small and

medium sized customers)• Cramo Healthy House• Rent a room (hotel service in modular space)

New business models:

• Web Shop• Cramo agents (“franchising”)• Cross border cooperation (“Team Öresund”)

p 29

New mission, vision and strategy 2010-13

Mission = why we exist, which business are we in

“Building flexibility and efficiency

through rental solutions”

Vision = what do we want to be

“The role model in rental”

Strategy = how do we compete and achieve our targets

“Rolling out the Cramo Concept with Cramo Processesand Cramo People”

30


FINANCIAL OVERVIEW AND MUST-WIN-BATTLES 2010-13MARTTI ALA-HÄRKÖNEN, CFOSEPTEMBER 1, 2010


p 31

Financial overview and must-win-battles

2010-13

• Risk management and recovery in rental business

• Importance of ROI and utilisation rates in steering rental business

• New financial targets

• Must-win-battles 2010-13

p 32

Financial and risk management priorities in a

changing landscape 2006-

2006-08 2009-H1/2010 H2/2010-

• High growth phase• Integration of Cramo• Focus on:

– business development and financial steering support

– business risk management: develop contingency plans and operational hedges ready for a possible downturn:

– Proactive monitoring: • Standard reporting package and

early-warning signals– Operational hedges

• Control of business exposure –Modular space

• Control of customer exposure –Expansion of customer base

• Control of geographic exposure– Expansion in the CEE area

• Control of asset intensity– Asset management

strategy– Asset financing strategy

– Contingency planning

• Economic downturn

• Take contingency plans and operational hedges into full use

• Focus on: – substantial reduction in

CAPEX levels

– return fleet financed byoperational leasing (limitedextra charges)

– sale of excess used equipment (each quarter positive gains)

– fixed cost adjustments in all OpCos and Group

– add flexibility and efficiency (e g, franchising, depot/hub structures, hired work force)

• Maintain strong market position

• New growth phase

• New strategy 2010-13

• Focus on:– increase efficiency,

productivity and ROI

– renewed focus on business risk management and operational hedges

– unified processes and KPIs

– continuous tight cost control

– strong balance sheet to support growth initiatives

– business development

p 33

Business cycle clock – concept”Turning point detection”

BOOM

Cycle is abovetrend and increasing

(+ / +)

DOWNSWING

Cycle is abovetrend and

decreasing(+ / -)

RECESSION

Cycle is belowtrend and

decreasing(- / -)

UPSWING

Cycle is belowtrend and increasing

(- / +)

2. 3.

4.1.

Stage of business cycle Business cycle clock

1.

2. 3.

4.

Source: Eurostat

p 34

DOWNSWING

RECESSION UPSWING

BOOM

Econ. sentiment Construction output

3

33

2

2

2

1

1

1

4

4

4

3

3

3

2

2

2

General economy (GDP, production, investments)

1

1

Source: Eurostat

1

1

Q210

1

2

2

3

3

3

4

4

4

1

11

Q210

2

Q210

Q4061

Q406

Q406

Q408Q408

Q408

Business cycle clock – Finland example Q4/2006- Q2/2010Economic sentiment indicator appears to be a lead indicator moving 2-3

quarters ahead of general economic development and construction output

p 35

Cramo Forward-Looking IndicatorsAt the end of Q2/2010, most indicators pointing towards the positive

Economic sentiment index (EU)

�� General economic development� GDP growth

Composite leading indicator (OECD) /

Industrial confidende index (EU)

�� Industrial production

Construction confidence index (EU)

�� Construction sector development� Construction output growth

ERA/IRN Rental confidence index

�� Rental activity

Cramo Rental Confidence Indicator

Modular space order book

Utilization rates

External indicators

Internal indicators

p 36

-35 %

-30 %

-25 %

-20 %

-15 %

-10 %

-5 %

0 %

5 %

10 %

15 %

Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 /04/10*

% change from previous year

Cramo sales growth Construction output growth

Recovery in rental follows construction with a lagRental recovery generally comes with a lag, but rate of recovery is faster

In normal business conditions, rental growth surpasses construction growth

Source: Construction growth rates from Eurostat (quarterly) and Euroconstruct, June 2010 (annual). Rental growth rates and estimates from European Rental Association, Spring 2010*Construction growth rates include only April 2010 for Q2

Construction and rental by quarter (Finland) Construction and rental by year (Finland)

1-2 quarter lag

Faster rate of

recovery

-20 %

-15 %

-10 %

-5 %

0 %

5 %

10 %

15 %

20 %

25 %

2007 2008E 2009E 2010F 2011F

% change from previous year

Rental market growth Construction output growth

p 37


2010-13





p 38

What should Cramo mgmt optimize / maximize?

Share price

EPS (Earnings per share)

ROE (Return on equity)

ROI(Return on investment)

Financial utilization(of fleet)

Time utilization(of fleet)

Business cycle, image, psychology... G

G

G

O, G

D, O, (G)

D, O, (G)

Indicator Other influencing factors Org. Level

MAX

MAX

MAX

MAX

MAX

Number of shares

Finance costs, taxes, capital structure

Oper. costs, balance sheet (inv. capital)

Pricing, discounts, fleet capital

G = Group; O = OPCO; D = Depot

And of course not forgetting growth!

p 39

The link between time and financial utilization Time utilization is an important factor of financial utilization (and ROI)

cost nAcquisitio

Sales Annual nutilizatio Financial =

cost nAcquisitio

Sales annual Maximum X rate) discount-(1 X nutilizatio Time nutilizatio Financial =

Maximum based on list prices and 100%

time utilization

Lost sales due to actual time utilization

and discounts

”Pricing factor”

�Optimisation of time utilisation, together with pricing and discounts, on the product/depot levels supports the optimisation of financial utilisation

�Optimisation of financial utilisation on the product and depot levels, in turn, supports ROI maximisation on the OpCo and Group levels

p 40

Time utilization / financial utilization frameworkImplications for rental management on operational level

Financial utilization %

Time

utilization

%

HighLow

High• Highly demanded product• Attractive pricing

• Invest more• Investigate possibility to increase

prices further

• Highly demanded product• Low pricing relative to purchase price • High discounts

• Increase prices / reduce discounts• Negotiate on purchase prices /

change supplier

• Seasonal or otherwise infrequently rented product

• Attractive pricing

• Investigate background, e g, seasonality• Be careful not to overinvest• Delete items with lowest time utilization• Increase prices if possible

• Recently acquired new fleet• Bottlenecks in rental process• Loss-making product

• Investigate trends in number of units• Investigate bottlenecks• Consider relocating equipment• Consider selling or scrapping equipment

=is the equipment

rented out orsitting at the

depot?

=is the equipment priced correctly?

p 41

ROI framework for rental managementFollowed monthly by each OpCo

ROI

EBIT

margin

Capital

efficiency

Operating

costs

Sales

Capital

invested

Volume

Price

Income

statement

Balance

sheet

Direct costs

Indirect

costs

Capital costs

• Machinery and equipment

• Buildings

• Land

• Personnel

• Premises

• Administration and sales costs

• Own & sub-rented machinery

• Assembly / disassembly

• Repairs and service

• Transports

• COGS

• Pricing

• Discount rate

• Inventories

• Accounts receivables and other current non-interest bearing receivables

• Accounts payables and other current non-interest bearing liabilities

• Depreciation

• Operational leasing

• Interest expenses

• Supply based• Machine fleet

• Time / financial utilisation

• Demand based• Addressable market size & growth

• Market penetration rates & market shares

• Operational leasing liabilities (off-balance sheet)

Net working

capital

Fixed assets

Operational

leasing

p 42

Stabilising Return on Investment after downturnThe trough of the downturn probably occurred in Spring 2010

-5 %

0 %

5 %

10 %

15 %

20 %

Q4/0

6

Q1/0

7

Q2/0

7

Q3/0

7

Q4/0

7

Q1/0

8

Q2/0

8

Q3/0

8

Q4/0

8

Q1/0

9

Q2/0

9

Q3/0

9

Q4/0

9

Q1/1

0

Q2/1

0

EBIT % / ROI % (R12M)

0,0

0,1

0,2

0,3

0,4

0,5

0,6

0,7

0,8Capital effic

iency (R

12M)

EBIT %, R12M ROI % Capital efficiency

p 43

0

100

200

300

400

500

600

700

800

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

Sales or Tangible assets, EUR m

0 %

20 %

40 %

60 %

80 %

100 %

120 %Sales, R

12m / T

angible assets, %

Sales, R12m Tangible assets Sales / tangible assets

Cramo’s current fleet enables growthCore targets for next 12 months: Increase prices and time utilisation

Sales to tangible assets from<90% to 100-110%

� EUR 60-115m higher saleswith current fleet

p 44


2010-13





p 45

Group’s financial targets 2010 – 2013

Financial

targets

2010-13

Financial

targets

2010-13

• Sales growth > 10 % p.a.

• EBITA-% > 15 %

• ROE-% > 15 %

• Gearing maximum 100 %

• Profit distribution policy: About one third

• Sales growth > 10 % p.a.

• EBITA-% > 15 %

• ROE-% > 15 %

• Gearing maximum 100 %

• Profit distribution policy: About one third

p 46

Financial targets in historical perspectiveGrowth, EBITA and ROE targets were met before the downturn

New gearing target guides towards a stronger balance sheet

Sales growth EBITA margin

Return on equity Gearing

-30 %

-20 %

-10 %

0 %

10 %

20 %

30 %

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

R12M sales growth, y-o-y %

Sales growth R12M New target 2010-13

0 %

5 %

10 %

15 %

20 %

25 %

Q4/0

6

Q1/0

7

Q2/0

7

Q3/0

7

Q4/0

7

Q1/0

8

Q2/0

8

Q3/0

8

Q4/0

8

Q1/0

9

Q2/0

9

Q3/0

9

Q4/0

9

Q1/1

0

Q2/1

0

R12M EBITA margin %

EBITA % R12M New target 2010-13

-15 %

-10 %

-5 %

0 %

5 %

10 %

15 %

20 %

25 %

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

ROE %

ROE % New target 2010-13

0 %

20 %

40 %

60 %

80 %

100 %

120 %

140 %

160 %

180 %

Q4/0

6

Q1/0

7

Q2/0

7

Q3/0

7

Q4/0

7

Q1/0

8

Q2/0

8

Q3/0

8

Q4/0

8

Q1/0

9

Q2/0

9

Q3/0

9

Q4/0

9

Q1/1

0

Q2/1

0

Gearing %

Gearing % New target 2010-13

New target: >10% New target: >15%

New target: >15% New target: max.100%

p 47


2010-13





p 48

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

p 49

Must-Win Battle objectives and projects 2010-13Must-Win Battle Objectives Key projects

11• Renew Cramo Concept

• Renew Cramo Concept

1. Roll out the renewed “Cramo Concept” to all Cramo markets

2. Roll out common pricing tool

1. Roll out the renewed “Cramo Concept” to all Cramo markets

2. Roll out common pricing tool

22• Implement Cramo Processes

• Implement Cramo Processes

1. Roll out a unified rental platform and harmonised key processes

2. Develop unified QSE standards3. Roll out Cramo Toolbox; unified

tools for business and fleet steering

1. Roll out a unified rental platform and harmonised key processes

2. Develop unified QSE standards3. Roll out Cramo Toolbox; unified

tools for business and fleet steering

33• Develop Cramo People

• Develop Cramo People

1. Roll out the new training model2. Roll out the new intercompany job

rotation/best practise sharing model 3. Roll out Cramopol: strategy and

values communication tool

1. Roll out the new training model2. Roll out the new intercompany job

rotation/best practise sharing model 3. Roll out Cramopol: strategy and

values communication tool

44• Be “Best in Town”, Win Next Markets

• Be “Best in Town”, Win Next Markets

1. Roll out the “Best in Town” strategy, including existing markets

2. Develop Cramo’s integration model3. Drive growth in Russia4. Enter selected new European mkts

1. Roll out the “Best in Town” strategy, including existing markets

2. Develop Cramo’s integration model3. Drive growth in Russia4. Enter selected new European mkts

55• Drive Modular Space Growth

• Drive Modular Space Growth

1. Drive modular space growth specifically in Norway and Denmark

2. Drive modular space growth outside the Nordic countries

1. Drive modular space growth specifically in Norway and Denmark

2. Drive modular space growth outside the Nordic countries

1. Cramo Concept2. Cramo pricing tool1. Cramo Concept2. Cramo pricing tool

1. New rental platform2. QSE project3. Cramo toolbox

1. New rental platform2. QSE project3. Cramo toolbox

1. Cramo development2. Cramo assignment3. Cramopol

1. Cramo development2. Cramo assignment3. Cramopol

1. “Best in Town” analyses2. Cramo integration model3. Win next markets: Russia4. Win next markets: New markets

1. “Best in Town” analyses2. Cramo integration model3. Win next markets: Russia4. Win next markets: New markets

1. MS growth in the Nordics2. MS growth in new countries1. MS growth in the Nordics2. MS growth in new countries

p 50

50


FINLANDTATU HAUHIO, SVP

SEPTEMBER 1, 2010


p 51

Cramo Finland overviewFull-coverage depot network in Finland

Share of Group sales (H1/10)

Share of Group assets (06/10)

Finland – 57 depots (6/2010)

57 depots (22 franchise)

Depot

Hub

Local headquarters

Finland

19 %

Finland

15 %

p 52

Modular spaceConstruction equiment

Access equimentTools

Full Cramo Concept offering in FinlandStrong offering in equipment rental, services and modular space

Equipment rental

Rental-related services and concepts

• Drying and heating• Scaffolding• Electrification & lighting

• Humidity control• Dust control• Site security• Infrared photography

• Assembly• Modular space production

p 53

Tools23 %

Construction equipment

2 %

Modular space37 %

Access equipment

17 %

Rental related services and other

21 %

Construction industry48 %

Other industry18 %

Public sector23 %

Households3 %

Other8 %

Sales mixBalanced mix of sales across product areas

Nearly a quarter of the sales generated from the public sector

Sales by customer segment, 2009Sales by product group, 2009

p 54

Key market trendsModest construction growth in 2010-12; rental recovery from 2010

Construction market trends Construction subsectors (2008 – 12)

• The total construction output fell by nearly 13 % in 2009. Despite the signs of economic revival, growth is expected to remain quite modest

• RT* expects another year of decline in construction in 2010, but higher rate of recovery for 2011

• Residential construction recovery is expected to befast in 2010 and moderate also in 2011-12

• Non-residential construction is expected to contract further in 2010-11, recovery to be expected in 2012

• Civil engineering is expected to remain relatively flat in 2010-11, the outlook for 2012 is slightly brighter

Equipment rental trends Construction vs. rental (2007 – 11)

• Rental demand is forecasted to bottom out in 2010

• In 2011, equipment rental is already expected to recover faster than the construction industry

• Increasing demand and recovering rental pricesaccompanied by increasing rental penetration willcontribute to a recovery of rental revenues in 2011

Source: Euroconstruct, June 2010 and The European Equipment Rental Industry 2009 Report*Rakennusteollisuus RT, April 2010

6,4

%

0,1

%

-12,7

%

1,2

%

0,2

%

21,2

%

10,9

%

-17,9

%

0,0

%

9,4

%

-2 0 %

-15 %

-10 %

-5 %

0 %

5 %

10 %

15 %

20 %

25 %

20 0 7 2 00 8 _ A /E 20 0 9 _ A /E 2 0 1 0 _ F 2 0 1 1 _ FY

ear-on-y

ear gro

wth

C o ns truc tio n R e nta l

0,1 %

-12,7 %

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

-20 %

-15 %

-10 %

-5 %

0 %

5 %

10 %

15 %

2008 2009 2010_F 2011_F 2012_O

Year

-on-

year ch

ang

e in

cons

truct

ion

out

put

Residential construction Non-res idential construction

C ivil engineering Total construction

-2,0%* 3,0%*

p 55

Competitive position in FinlandCramo is a strong # 2 on the Finnish equipment rental market

Company Market position*Company type Coverage

General rental National, 83 depotsRamirent 1.

General rental National, 57 depotsCramo 2.

Scaffolding specialist 6 depots across the country

Telinekataja 3.

Lifting equipmentspecialist

11 depots across the country

Pekkaniska 4.

General rental7 depots mostlyaround TampereHämeen Rakennuskone 5.

Scaffolding specialistArme 6.4 depots across the

country

* Cramo management estimate of the market positions on the general equipment rental market

p 56

Financial and operational developmentHeavy adjustment measures secured satisfactory profits in downturn

Number of employees, 2007-Q2/10 Number of depots, 2007-Q2/10

R12M sales, 2007-Q2/10 R12M EBITA & EBITA-%, 2007-Q2/10

113,4126,3

92,1 88,0

0

20

40

60

80

100

120

140

2007 2008 2009 Q2/2010

R12M sales (EUR million)

26,9 26,3

10,7 11,0

23,7 %

20,9 %

11,6 %12,5 %

0

5

10

15

20

25

30

2007 2008 2009 Q2/2010

R12M EBITA (EUR million)

0 %

5 %

10 %

15 %

20 %

25 %

EBITA-%

739823

472557

0100200300400500600700800900

2007 2008 2009 Q2/2010

Number of employees

6661

57 57

0

10

20

30

40

50

60

70

2007 2008 2009 Q2/2010

Number of depots

p 57

Strategic and operational development

2006-08 2009-H1/2010 H2/2010-

• Integration of RakentajainKonevuokraamo and Cramo operations

• Solid organic growth achieved with good profitability

• Bolt-on acquisitions

• Renewed sales processes and organisation

• Extensive development of customer service, sales and supervisory staff

• Market position maintained in downturn

• Adjustment measures implemented successfully

• Double-digit EBITA margin secured despite a 27% drop in sales in 2009

• Customer base expanded in industrial maintenance

• Customer satisfaction improved

• Franchising concept introduced

• Hub organisation completed

• Divestment of Diamond drilling operation

• Increase market share and improve profitability

• Find new customer segments in industry and trade

• Further develop rental related services

• Improve utilisation rates, fleet efficiency and mobility

• Improve operational flexibility

• Fully utilise modular space synergies in the Nordic area

• Take advantage of market opportunities (incl. outsourcing)

• Continue developing customer service

p 58

Strategic priorities and targets 2010-13

• Return to growth and improved profitability– Implement ”Best in town” concept– Utilise outsourcing opportunities– Improved operational flexibility

• Focus on customer– Continuous development of customer

service– Roll out new customer-oriented services– Increase customer base in industrial

maintenance– Utilize new web-based solutions like Cramo

web depot and customer extranet

Strategic priorities Targets

• Increase marketshare

• EBITA levelreturned to 2008 levels

• Several new serviceofferingsimplemented

p 59

Finland customer case #1: Taskinen Oy (Part of Lemminkäinen Group)

• Cramo took over equipment fleet of Taskinen in the end of 2008, in an outsourcing deal for 5 years where Cramo is the sole supplier of rental fleet. In 2010, the contract was prolonged until 2015

• Before the agreement, Taskinen had an own storage depot and the rest of equipment suppliers were chosen case by case

• Although not part of the contract, Cramo has significantly increased sales of other services and we have found new ways to cooperate, e g, Cramo logo is installed into site panels of Taskinen

• The transaction opened way to new outsourcing deals with the LemminkäinenGroup in Kuopio, Tampere and Turku areas in 2010

p 60

• The “Olkiluoto 3” project started in 2004-05 with planned end in 2009 but has been postponed until 2013. Cramo rented out modular premises at the project start in 2004. Due to changes in timetable, rental agreements have consequently been extended. Moreover, in April 2010 Cramo delivered additional modular premises amounting to approximately 1.100 m2

• At present a total of 850 modular space units are rented on site from Cramo. Totallingsome 25.000 m2 of space, the project includes mainly 9-series modules consisting of offices and site huts with lockers and showers as well as four “Tilanne” main office buildings

• At the project site Cramo has also established a satellite rental depot for access, construction machinery and tool rental and rental related services

Finland customer case #2: Olkiluoto Nuclear Power Plant

p 61

Cramo Finland – Summary

• Double-digit EBITA margin secured despite sharp decrease in sales

• Recovery in construction and rental expected to start in 2010-11

• Cramo Finland’s focus is on recovering sales and improvingprofitability

• Further increasing customer focus: service levels, new services and concepts, broadened customer base

62


SWEDENERIK BENGTSSON, SVP

SEPTEMBER 1, 2010


p 63

Cramo Sweden overviewA country-wide depot network in Sweden



Sweden – 116 depots (6/2010)


Depot

Hub

Local headquarters

Sw eden

47 %

Sw eden

51 %

p 64



Full Cramo Concept offering in SwedenStrong, complete offering in equipment rental and modular space

Equipment rental


• Drying and heating• Scaffolding• Electrification

• Dust control• Site security• Cramo Energy

• Cramo 24• Cramo Flexi• Web shop

p 65


12 %

Access equipment24 %

Other6 %

Tools27 %

Modular space31 %


Other industry29 %

Public sector18 %

Households3 %

Other2 %


Nearly 30 per cent of the sales generated from other industry


p 66

Key market trendsCivil engineering driving construction growth in 2010-11;

Rental recovery expected latest in 2011


• The total construction output went down by only 4,4% in 2009 due to the size and expansion of civil engineering output

• Civil engineering is expected to drive constructiongrowth, together with recovering residential segment

• In total, construction output is likely to grow slower in 2012 than in 2011 when the public sector funding on civil engineering projects is expected to reach an end


• Rental rates and time utilisation of rental equipmentdecreased in 2009 and are expected to remain underpressure through most of the year 2010

• Therefore, rental industry is forecasted to remainconstant over 2010 at best

• For 2011, however, a growth of 8 % is expected duemainly to increasing rental demand from the construction industry and the recovery of rental rates

Source: Euroconstruct, June 2010 and The European Equipment Rental Industry 2009 Report*Sveriges Byggindustrier, June 2010

-0 ,2 %

-4,4 %

2,1 %

7,8 %

3,4 %

-20 %

-15 %

-10 %

-5 %

0 %

5 %

10 %

15 %

20 %

2008 2009 2010_F 2011_F 2012_O

Yea

r-on

-yea

r ch

ange

in c

onst

ruct

ion

outp

ut

Residential construction Non-residential construction

C ivil engineering Total construction

4,6

%

-0,2

%

-4,4

%

2,1

%

7,8

%

20,1

%

12,0

%

-9,2

%

-1,0

%

8,4

%

-15 %

-10 %

-5 %

0 %

5 %

10 %

15 %

20 %

25 %

2007 2008_A/E 2009_A/E 2010_F 2011_FYea

r-on

-yea

r gr

owth

Construction Rental

3,0%*

5,0%*

p 67

Competitive position in SwedenCramo is a strong # 1 on the Swedish equipment rental market


General rentalNational,

116 depotsCramo 1.

General rentalNational,69 depots

Ramirent 2.

PEAB’s internal rentalLambertsson 3.

Skanska’s internalrental

Skanska Maskin 4.

General rental, focus on access equipmant

Southern and CentralSweden

Stavdal 5.

Access equipment, closely linked to PEAB

Kranpunkten 6.South of Dalälven

National,25 depots

* Cramo management estimate of the market positions on the general equipment rental market.

National,13 depots

p 68

Financial and Operational developmentSweden managed the downturn with a good level of profitability



248,5273,8

215,7 225,2

0

50

100

150

200

250

300

2007 2008 2009 Q2/2010


56,262,9

36,0 33,2

22,6 % 23,0 %

16,7 %14,7 %

0

10

20

30

40

50

60

70

2007 2008 2009 Q2/2010


0 %

5 %

10 %

15 %

20 %

25 %

EBITA-%

614

724657 668

0

100

200

300

400

500

600

700

800

2007 2008 2009 Q2/2010

Number of employees

104111 116 116

0

20

40

60

80

100

120

140

2007 2008 2009 Q2/2010

Number of depots

p 69


2006-08 2009-H1/2010 H2/2010-

• Strong sales growth and good profitability according to targets

• Leading market position strengthened

• Several bolt-on acquisitions

• Successful investments to develop rental fleet

• Development of hub organisation and repair centers

• Key account management system expanded

• Demand for rental-related services increased

• Profitability maintained at a good level despite a significant drop in sales

• Adjustment measures exceeded expectations

• Leading market position maintained

• New organisation launched and implemented

• Two shared hubs opened with Danish operations

• Product availability improved by 24/7 depots, web shop and further enhancement of the franchising concept

• New service concepts introduced

• Maintain market share and good profitability

• Increase sales efforts in targeted areas in Sweden

• Further develop fleet-related processes and efficiency

• Improve operational flexibility

• Fully utilise modular space synergies in the Nordic area

• Take advantage of market opportunities

p 70


• Pursue growth– Investigate further outsourcing possibilities – Strengthen the ability for add-on sales– Use acquisitions selectively when

opportunities arise

• Excel in fleet management– Increase fleet mobility even further– Visualize and monitor key performance

indicators in every depot– Establish the right incentives for fleet usage

optimization

• Improve profit– Further develop effective pricing and

discount policy– Prioritise investments into product areas

where profitability opportunities are best– Sharp cost control and defined KPIs


• Best in town

• Increasedefficiciency

• Improve profitabilityand return on investment

p 71

Sweden customer case #1: A new trend – Outsourcing deal with mid size companies in the Nordics

• Outsourcing deal completed in Q2/2010 with Frijo, a well-knownStockholm-based contractor– More than 100 years in the

business

– Focused on ground works, blasting, tunneling, concrete

• Highlights of the deal– Aquisition of the entire fleet

– New depot on the Frijo premiseswith excellent location close to E4/E20

– Five-year contract

– Good expansion possibilites

p 72

Sweden customer case #2:Emporia in Malmö

• Emporia will be a large shopping mallwith 245 stores, 30 restaurants and a large number of offices

• Agreement signed in 2008

• Cramo delivers:– Project depot with store

– Pool of access equipment (approx. 500 units)

– Electricity (equipment and dimensioning)

– 65 PK2000 project offfices

– Site huts for 600 people

– 12 hoists

– 4km safety fence

p 73

Cramo Sweden – Summary

• The market is rapidly picking up

• Cramo’s market prosition strengthened during the downturn

• Price increases and efficiency in focus

• Strategic acquisitions and outsourcing deals make us well-positionedfor the upturn

p 74

74


NORWAYFINN LØKKEN, SVP

SEPTEMBER 1, 2010


p 75

Norw ay

15 %

Norw ay

10 %

Cramo Norway overviewGood depot network coverage in Norway



Norway – 28 depots (6/2010)


Depot

Hub

Local headquarters

p 76



Full Cramo Concept offering in NorwayComplete offering of equipment rental and modular space

Equipment rental


• Drying and heating• Scaffolding• Electrification

• Site security• Dust control• Assembly

p 77


Over quarter of the sales generated from other industry


Tools20 %


10 %

Modular space33 %

Access equipment

26 %

Other11 %


Other industry26 %

Public sector10 %

Households4 %

Other5 %

p 78

Key market trendsConstruction output & rental expected to increase from 2011 onwards


• Total construction output fell by about 3,4 % in 2009, and the decline has continued into 2010

• According to Prognosesenteret, total market should be flat in 2010, with clear growth in 2011-12

• Residential construction growth is expected to pick up already in 2010

• The volume of non-residential construction is expected to contract further in 2010-11; only in 2012 can growth be expected

• The growth in civil engineering is expected to turn into contraction in 2010 due to the reduction of stimulus packages - growth to continue in 2011-12


• The outlook for rental in 2010 remains fairly weak

• In 2011, equipment rental is expected to recoverfaster than the construction industry

• Increasing rental demand from construction and recovering rental rates in conjunction with an improving rental penetration rate will lead to a clearrecovery of rental activity in 2011

Source: Euroconstruct, June 2010 and The European Equipment Rental Industry 2009 Report*Prognosesenteret, August 2010

-0 ,1 %

-3 ,4 % -3 ,9 %

2 ,3 %4 ,0 %

-2 0 %

-1 5 %

-1 0 %

-5 %

0 %

5 %

1 0 %

1 5 %

2 0 0 8 2 0 0 9 2 0 1 0 _ F 2 0 1 1 _ F 2 0 1 2 _ O

Year

-on-

yea

r ch

ange

in c

onst

ruct

ion

outp

ut

R e s id e n tia l c o ns truc tio n N o n -re s id e n tia l c o ns tru c tio n

C iv il e ng ine e ring T o ta l c o ns truc tio n

8,7

%

-0,1

%

-3,4

%

-3,9

%

2,3

%

21,9

%

8,8

%

-8,8

%

-3,4

%

5,4

%

-15 %

-10 %

-5 %

0 %

5 %

10 %

15 %

20 %

25 %

2007 2008_A /E 2009_A /E 2010_F 2011_FYear

-on-y

ear

gro

wth

Cons truc tion Rental

~0%*

3,0%*4,0%*

p 79

Competitive position in NorwayCramo has successfully grown to #2 position on the Norwegian

equipment rental market


General rental National38 Depots

Ramirent 1.

General rental National20 Depots

UCO 3.

General RentalCramo 2.

Sales and rentalMalthus 4.

National28 Depots

National13 Depots


Sales and rentalNational5 Depots

Kranor 5.

General RentalByggesystemer 6.National8 Depots

p 80

Financial and Operational developmentMeasures aimed at improving profitability to be continued



57,3

69,763,4 64,4

0

10

20

30

40

50

60

70

80

2007 2008 2009 Q2/2010


5,9 6,1

4,0

1,3

10,3 %

8,8 %

6,3 %

2,0 %

0

1

2

3

4

5

6

7

2007 2008 2009 Q2/2010


0 %

2 %

4 %

6 %

8 %

10 %

12 %

EBITA-%

142

209

178 180

0

50

100

150

200

250

2007 2008 2009 Q2/2010

Number of employees

26 27 27 28

0

5

10

15

20

25

30

2007 2008 2009 Q2/2010

Number of depots

p 81


2006-08 2009-H1/2010 H2/2010-

• Fast growth achieved

• Market position improved to #3

• Growth supported byacquisitions

• Investments to develop the rental fleet

• Successful penetration into major infrastructure projects

• Full-coverage depot networkdeveloped

• Hub structureimplementation started

• Cost adjustment measuresinitiated

• Satisfactory profitabilityachieved despite adjustmentmeasures

• Market position strengthenedin a difficult marketenvironment

• Customer base expanded in small and medium sizeconstruction companies and in the industry

• Further development of keycustomer relations

• Reorganisation of logistics, transport and servicenetworks

• Grow and gain furthermarket share

• Improve profitability

• Focus on developing keyaccounts

• Increase focus on industryand public sector customers

• Continue developing the Cramo Concept

• Develop resource/servicecenter structure further

• Improve fleet efficiency and mobility

• Take advantage of marketopportunities

• Fully utilise modular spacesynergies in the Nordic area

p 82


• Increase profitability– Effective pricing and discount policy– Prioritise investments into product areas

where profitability opportunities are greatest– Develop cost control and KPIs further

• Pursue growth– Increase growth, but with increased

profitability– Pursue tactical acquisitions and outsourcing

deals, coupled with long-standing cooperation agreements

• Improve cash flow– Improve profitability– Strong focus on customer receivables


• Improve profitability and return on investment

• “Best in town”

• Grow both through organic measures as well as outsourcing and acquisitions

p 83

Norway business case #1: Nordic Crane Group AS

• Five year mutual frame agreement, with expected value of EUR 12.5m (Nordic)

• Acquisition of HegoMaskinutleie AS, Bergen area

• Owned by Stangeland KranAS and Kynningsrud Kran AS

• Focus on the industrial customer segment

p 84

Norway customer case #2: AF Gruppen ASA

• New two-year agreement with AF Gruppen ASA signed

• AF Gruppen is #3 in Norway in construction

• Cramo AS supplier for 80 % of the projects in Oslo area

• Total project value for AF Gruppen: EUR 187.5m

• Expected value for Cramo in the next 3 years: EUR 9m

p 85

Cramo Norway – Summary

• Market turning to gradual growth after three consecutive years of negative development in the construction industry

• Main focus on improving operational efficiency as well as profitability and cash flow

• Ability to take advantage of organic and outsourcing opportunities for growth and market share gain

86


DENMARKGÖRAN CARLSON, DEPUTY CEO

SEPTEMBER 1, 2010


p 87

Denmark

6 %

Denmark

6 %

Cramo Denmark overviewBalanced depot network across Denmark



Denmark – 17 depots (6/2010)


Depot

Hub

Local headquarters

p 88



Cramo Concept offering in DenmarkStrong offering in construction equipment and modular space

Equipment rental


• Electrification• Assembly

p 89

Sales mixModular space dominating product areas

Over one third of the sales generated from the public sector


Tools10 %


28 %

Modular space48 %

Access equipment

10 %

Other4 %


Other industry15 %

Public sector35 %

Households2 %

Other4 %

p 90

Key market trendsGrowth expected for all construction subsectors and rental in 2011


• Total construction activity is expected to decrease by about 3% in 2010 as new building construction declines, although civil engineering is expected to grow

• For 2011-12, there is expected to be renewed growth in all of the construction subsectors

• However, total construction levels of 2012 are still clearly below those of 2007


• The fragmented Danish rental market experienced severe market difficulties in 2009 and H1/2010

• A further reduction is expected for 2010 as prices are likely to remain under pressure and the demand in the construction industry is recovering slowly

• The market is expected to bottom out in late 2010. Increasing rental volumes, consolidation of market and slightly recovering rental rates are expected to result in clear growth of the market in 2011

Source: Euroconstruct, June 2010 and The European Equipment Rental Industry 2009 Report

-5,0 %

-11,3 %

-2,9 %

4,1 %6,0 %

-20 %

-15 %

-10 %

-5 %

0 %

5 %

10 %

2008 2009 2010_F 2011_F 2012_O

Yea

r-on

-yea

r ch

ange

in c

onst

ruct

ion

outp

ut


Civil engineering Total construction

1,5

%

-5,0

%

-11,3

%

-2,9

%

4,1

%

10,3

%

2,0

%

-25,0

%

-4,9

%

10,2

%

-30 %

-25 %

-20 %

-15 %

-10 %

-5 %

0 %

5 %

10 %

15 %

2007 2008_A/E 2009_A/E 2010_F 2011_F

Yea

r-on

-yea

r gr

owth

Construction Rental

p 91

Competitive position in DenmarkCramo is # 2 on the Danish equipment rental market


General rentalNational

20 DepotsRamirent 1.

General rentalNational 17 Depots

2.

General rental 3.

General rentalNational 2 DepotsAjos 4.

General rentalNational

19 DepotsNordjysk lift 5.

General rentalWMC (group) 6.National11 depots

National18 Depots


Loxam

Cramo

p 92

Financial and Operational developmentDenmark continues to be a challenging market


R12M sales, 2007-Q2/10 R12M EBITA, 2007-Q2/10

28,5

44,4

36,331,5

0

10

20

30

40

50

2007 2008 2009 Q2/2010


2,1

-2,9

-8,9-10,5

7,4 %

-6,5 %

-24,4 %

-33,2 %-12

-10

-8

-6

-4

-2

0

2

4

2007 2008 2009 Q2/2010


-40 %-35 %

-30 %-25 %-20 %-15 %

-10 %-5 %0 %

5 %10 %

EBITA-%

161 155

115 115

020406080

100120140160180

2007 2008 2009 Q2/2010

Number of employees

17

22

17 17

0

5

10

15

20

25

2007 2008 2009 Q2/2010

Number of depots

p 93


2006-08 2009-H1/2010 H2/2010-• Rapid growth and increased

market share

• Market position improved to #2

• Growth supported by outsourcing cases

• Investments to develop the rental fleet

• Full-coverage depot network developed

• Cost adjustment measures initiated

• Unsatisfactory profitability in a difficult market despite heavy adjustment measures

• Depot and staff reductions

• Fleet reductions

• Service shop closures and two shared hubs opened with Swedish operations

• Total change in logistics set-up

• Renewed organisation and management

• Improvements in credit and collections

• Price restructuring

• Processes and policies aligned to Cramo standard

• Improve profitability – secure acceptable results even in a weak market

• Improve sales orientation down to the depot level

• Increase focus on larger construction companies and projects with full offering

• Leverage the strong market position in Modular Space (construction), to sell the full Cramo offering

• Develop hub structure and fleet efficiency further

• Build further from strong position and competence in Modular Space (non-construction)

p 94


• Improve profitability

• Focus on profitable core businesses, core customers and in areas with strong Cramo positions

• Price management

• Optimize depot and hub structure; fleet efficiency

• Profitable growth by leveraging good positions in Modular Space (construction), and in Construction equipment to sell the full Cramo offering

• Expand and build further from strong base in Modular Space (non-construction)


• Achieve acceptable level of profitability

• Build long term sustainable profitability with full Cramo offering

p 95

Denmark customer case #1: Temporary Nursing Home

• In April 27, 2010, the nursing home Solvænget, north of Copenhagen, burned down to the ground

• Cramo won the project to build a temporary home for 17 elderly people, partially due to quick delivery and high quality of standard units.

• Project consists of 14 small apartments including toilet/shower and bedroom and common areas such as kitchen, tv-room, dining room and staff facilities

• Cramo delivers 30 modular space units and the construction work of adapting the standard units to the demands of a care centre

p 96

Denmark customer case #2: Concert Hall

• New concert and music hall in Ålborg, northern Jutland

• Shopping mall and hotel are planned in this project

• Total value of project is EUR 100m

• Project is still in early phases (ground preparations), performed by a large Cramo customer: Arkil A/S

• Cramo is working closely with the construction companies competing to get the contract for the rest of the project

p 97

Denmark customer case #3: Underground Tunnel

• Redirection of one of the most central roads in Århus in order to create a central route from the main highway in Jutland to the port of Århus

• One of the largest civil engineering projects in the Region

• Total value of project is EUR 200m

• First phase already running. Main contractor is CG Jensen, one of the largest Cramo customers in Denmark

• Second phase will be to build a tunnel underground and re-establish a road above. This phase still pending on EU financial support

p 98

Denmark – Summary

• Restoring profitability is foremost priority

• Continued implementation of existing programs and activities

• Market recovery expected to start in 2011

• Restoring long-term profitability through full Cramo offering

99


CENTRAL & EASTERN EUROPEGÖRAN CARLSON, DEPUTY CEOJARMO LAASANEN, SVP

SEPTEMBER 1, 2010


p 100

• Overview of segment Central and Eastern Europe

• CEE Central: Poland, the Czech Republic and Slovakia

• CEE East: Russia and the Baltic Countries

Agenda

p 101

CEE

17 %

CEE

9 %

Cramo CEE overviewBroad depot network in CEE



Central and Eastern Europe – 65 depots (6/2010)

Depot

16 depots (0)

10 depots (8)

8 depots (5)

18 depots (0)


4 depots (0)

2 depots (0)

p 102



Cramo Concept offering in CEEBuilding up towards full Cramo Concept offering in CEE

Equipment rental


• Assembly• Operator services• Hot Rental

p 103

Sales mixAccess equipment and tools constituting two-thirds of total sales

Most of sales generated from the construction industry


Tools

30 %

Construction

equipment

12 %Modular space

11 %

Access equipment

36 %

Other

11 %

Construction industry

86 %

Other industry

5 %

Public sector

4 %

Households

2 % Other

3 %

p 104

Financial and operational developmentExtensive adjustment measures starting to bear fruit



58,3

77,4

44,1 43,0

0

10

20

30

40

50

60

70

80

90

2007 2008 2009 Q2/2010


555

812

533 506

0

100

200

300

400

500

600

700

800

900

2007 2008 2009 Q2/2010

Number of employees

55

82

67 65

0

10

20

30

40

50

60

70

80

90

2007 2008 2009 Q2/2010

Number of depots

17,1

9,9

-17,6 -17,1

29,3 %

12,8 %

-40,0 % -39,7 %

-20

-15

-10

-5

0

5

10

15

20

2007 2008 2009 Q2/2010


-50 %

-40 %

-30 %

-20 %

-10 %

0 %

10 %

20 %

30 %

40 %

EBITA-%

p 105




Agenda

p 106

Key market trends (1/2)Construction recovery driven by civil engineering and residential


• Construction output in 2010 is expected to increase by 10 % as a result of big investments in motorways and other civil engineering projects

• In addition, considering its scope and international significance, Euro 2012 will accelerate the construction output growth

• Construction output in 2011 and 2012 is expected to increase by 14,5 % and 14,1 %, respectively

• From 2010 onwards, recovery in all construction subsegments

Source: Euroconstruct, June 2010

Poland

• The Czech non-residential construction market was hardest hit by the recession

• Growth of the residential market stopped in 2009 and output is expected to decrease in the period 2009–10. Growth is expected in 2011-12

• Growth of the civil engineering market has continued in spite of recession and is expected to continue in 2010-12

• Civil engineering accounts for about half of the Czech construction outputCzechRepublic

0 ,0 % -1 ,0 %

-7,0 %

2,1 % 3,1 %

-25 %

-20 %

-15 %

-10 %

-5 %

0 %

5 %

10 %

15 %

20 %

2008 2009 2010_F 2011_F 2012_O

Yea

r-on

-yea

r ch

ange

in c

onst

ruct

ion

outp

ut

Residential cons truc tion Non-res idential construc tion

C ivil eng ineering To tal construc tion

11,4 %

4,3 %

10,0 %

14,5 % 14,1 %

-10 %

-5 %

0 %

5 %

10 %

15 %

20 %

25 %

30 %

2008 2009 2010_F 2011_F 2012_O

Yea

r-on

-yea

r ch

ange

in c

onst

ruct

ion

outp

ut



p 107


• Main driver of Slovakian construction output in the next years is expected to be civil engineering; most significant growth is expected in 2010-11

• Both residential and non-residential construction are expected to decline in 2010

• However, both subsectors are expected to return to growth from 2011 onwards, supporting total construction growth in 2011-12 as civil engineering output growth is expected to be weaker


Slovakia

11,0 %

-13,0 %

4,8 %11,2 %

4,2 %

-30 %

-20 %

-10 %

0 %

10 %

20 %

30 %

40 %

50 %

2008 2009 2010_F 2011_F 2012_O

Yea

r-on

-yea

r ch

ange

in c

onst

ruct

ion

outp

ut



Key market trends (2/2)Construction recovery driven by civil engineering and residential

p 108

Competitive position in CEE Central (1/2)Cramo is a strong # 2 in Poland; leader in access equipment in the Czech

Republic; and #4 in Slovakia

Company Market pos.*Company type Coverage

General rental 42 depotsRamirent 1.

General rental 18 depotsCramo 2.

General rental 12 depotsHKL 3.

General rental 14 depotsPhoenix Zeppelin 1.


Access equipmentCramo 3.4 depots


Poland

Czech Rep.

Access equipment 3 depotsFelbermayr 1.

General rental 5 depotsPhoenix Zeppelin 3.

General rental 32 depotsOTS-Ramirent 2.

Slovakia

Access equipment 2 depotsCramo 4.

p 109

Strategic and operational development CEE Central

2006-08 2009-H1/2010 H2/2010-• Fast growth, increased

market share in all markets

• High profitability

• Depot network strengthened in Poland

• Market position clearly strengthened in the Czech through acquisition, entry into Slovakia

• Rental equipment fleet expanded and service offering widened

• Negative sales growth in all markets

• Profitability unsatisfactory despite heavy adjustment measures

• Market position maintained

• Customer base expanded

• Competence development in sales and fleet management

• Fleet sales effort ramped up

• Improve profitability – secure acceptable results in a weak market

• Maintain market position

• Further improve fleet efficiency and mobility

• Expand product segments, such as modular space

• Expand customer base outside construction

• Roll out the Total Solution Provider Concept

• Develop partner network for improved efficiency and service to customers

• Prepare for next growth phase

• Develop new markets where appropriate

p 110

Strategic priorities and targets 2010-13CEE Central

• Poland:– Profitable growth through implementation of

Total Solution Provider Concept and by exploring existing and new customers

– Depot & hub optimization with the continued expansion in order to achieve scale in existing regions and access to new markets

• Czech Republic and Slovakia:– Improve profitability– Build a general rental business, based on a

more complete Cramo offering

• Build on Modular Space opportunities

• Improve internal operational processes and fleet efficiency

• Human Resource Development and organizational strengthening


• Acceptable profitability

• #1 or #2 market position, Best in town

• Profitable growth, faster than market, particularly in Poland

• Reaching Cramo Group process and efficiency standards

p 111

Poland customer case #1:Motorway A1 Silesia

• A1 in Silesia, 2007-2013, project value of EUR 1.500m

• 60 km in 4 sections: one accomplished, two under construction, one in initial stage

• Key Clients: Polimex Mostostal, Doprastav, Eurovia, PRDiM, Dragados,

• Range of products: – Tools (pumps, vibrating plates,

concrete equipment, generators)

– Construction Equipment (rollers) and Access (telehandlers)

p 112

Poland customer case #2: National Stadium, Warsaw

• National Stadium, Warsaw, 2009-11, original value of EUR 450m

• Project in advanced building erection stage

• Key Clients: – Alpine Bau & Hydrobudowa (main

contractor)

– 10 medium-sized companies involved as a subcontractors

• Range of products: – Tools (pumps, vibrating plates,

concrete equipment, cutting and bending tools, heating, electric hand tools and others)

– Construction and Access equipment (Scissors, booms, hoists)

p 113

Cramo CEE Central – Summary

• Fast growth and good profitability until 2008

• Following the market drop and with intensified competition, heavy adjustment measures completed in 2009-10

• Restoring profitability is foremost priority

• Profitable growth, introducing full Cramo offering and by expanding network and customer base

• Strengthen organisations and processes

• Prepare for next growth phase and new markets

p 114




Agenda

p 115

Key market trendsOpportunities for growth expected in Russia

Recovery in the Baltic countries expected to start from Estonia


• Growth forecasts for construction and the national economy in 2010 have improved in Estonia

• Construction is still expected to decrease in 2010 and pick up only in 2011 as the economy recovers

• Residential construction growth is expected to return to high level but total construction is not expected to reach the level of the boom years in the forecast periodE

stonia

-17,0 %

-28,0 %

-13,0 %

7,0 %12,0 %

-40 %

-30 %

-20 %

-10 %

0 %

10 %

20 %

30 %

40 %

2008 2009 2010_F 2011_F 2012_OYea

r-on

-yea

r ch

ange

in

cons

truct

ion

outp

ut




• In the recent past, construction was among the fastest growing sectors of the Russian economy

• In 2009, the sector was hit hard - collapse of finance, frozen projects & hit on equipment rental and sales

• The growth forecasts for construction and the national economy have been increased for 2010

• Uncertainty to remain high through 2010• More substantial growth forecasted in 2011-12 in

construction with high variation between regions• Evolving business environment for rental

– Quality and technology improving in residential– Replacement of obsolete equipment– More transparency in industrial and public projects– Overall low construction value per capita

Russia

9,0 %

-16,0 %

0,0 %

7,0 %9,0 %

-20 %

-15 %

-10 %

-5 %

0 %

5 %

10 %

15 %

2008 2009_E 2010_F 2011_F 2012_O

Yea

r-on

-yea

r ch

ange

in c

onst

ruct

ion

outp

ut

Total construction

p 116

Key market trendsRecovery in Latvia and Lithuania will follow later



• The decline in building construction brought down the overall construction volume in 2008, while in 2009 all sectors declined, including civil engineering

• The construction subsectors are expected to decrease in 2010, remain flat in 2011, and improve clearly in 2012

Latvia

-6,0 %

-37,0 %

-17,0 %

-1,0 %

11,0 %

-60 %

-50 %

-40 %

-30 %

-20 %

-10 %

0 %

10 %

20 %

30 %

2008 2009 2010_F 2011_F 2012_O

Yea

r-on

-yea

r ch

ange

in c

onst

ruct

ion

outp

ut



• According to Statistics Lithuania, the construction markets of Lithuania continued to be challenging in the first half of 2010

• However, there have been signs of stabilization in Lithuania similar to those in Estonia since autumn 2009

• In the forecast period, a roughly similar change in construction output is expected for the Lithuanian construction subsectors than for those of Latvia

Lithuania 0,0 %

-32,0 %

-18,0 %

0,0 %

7,0 %

-50 %

-40 %

-30 %

-20 %

-10 %

0 %

10 %

20 %

30 %

2008 2009 2010_F 2011_F 2012_O

Yea

r-on-

year

cha

nge

in c

onst

ruct

ion

outp

ut



p 117

Competitive position in CEE East (1/2)Cramo is #2 in Russia and strong #1 in Estonia




2 depotsPekkaNiska 3.


Estonia

Crane and liftingequipment specialist



Crane and liftingequipment specialist

PekkaNiska 3.3 depots

Russia

p 118

Competitive position in CEE East (2/2)Cramo is #1-2 in Latvia and #1 in Lithuania




Scaffolding 1 depotPeri 3.


Lithuania

General rental 10 depotsCramo 1-2.

General rental 15 depotsRamirent 1-2.

General rentalStorent 3.4 depots

Latvia

p 119

Strategic and operational development –CEE East

2006-08 2009-H1/2010 H2/2010-

• Fast growth, increased market share in all markets

• High profitability

• Integration of operations in Estonia

• Expansion of customer base and depot network coverage in Latvia and Lithuania, supported by acquisitions

• Depot network strengthened in St. Petersburg, expansion into Moscow area, Kaluga, Yekaterinburg and Kaliningrad

• Rental equipment fleet expanded and service offering widened

• Adjustment measures started in the Baltics

• Negative sales growth in all markets except Moscow due to low market demand

• Unsatisfactory profitability despite heavy adjustment measures

• Market position strengthened in the Baltic countries and Moscow region

• Customer base expanded

• Latvian and Lithuanian operations combined

• New services in Russia

• Shared management and tighter integration in Russia

• Franchise operations started in Latvia and Lithuania

• Intense fleet optimization measures in the Baltics

• Improve profitability – secure acceptable results in a weak market

• Maintain market position

• Further improve fleet efficiency and mobility

• Expand product segments, such as modular space

• Expand customer base outside construction

• Roll out the Total Solution Provider Concept

• Develop partner network for improved efficiency and service to customers

• Prepare for next growth phase

• Develop new markets where appropriate

p 120

Strategic priorities and targets 2010-13Post-crisis developments increase competitive pressure in the construction value-chain in Russia

Main drivers

– Need to cut costs, release capital, less financing for tooling and equipment

– Improved construction planning and utilisation of new technologies

– Focus on timing and value-for-money, higher quality, faster completion

Developers Reviewed projects criteria, better organised, closer control

Contractors Lower costs, reduced time, improved safety and quality

Rental companies

More intense competition and “Customer’s market”Efficient customised solutionsNew sales and delivery structuresNew strategic assets and capabilities

�� Cramo is preparing new strategy for Russia to respond to these requirements

p 121

Strategic priorities and targets 2010-13Russia

• Keep strong focus on the prime markets of North-West and Moscow

• Become part of the larger ”system shaping”group of construction stakeholders with good access to large projects

• Selectively expand to new segments and regions

• Exploit Modular Space opportunities

• Develop value proposition towards strategic customer groups

• Balance the offer to match with the market; standardise fleet

• Improve organisational skills and operational processes


• High profitable growth

• Best in town

• Customers’ first choice

• Start Modular Space rental to non-construction

• Develop partner/ stakeholder network

• Increase fleet according to the demand level

p 122

Strategic priorities and targets 2010-13Baltic countries

• Profitability improvement

• Secure market leadership

• Continue to develop and maintain flexible cost structure

• Fleet optimization

• Risk management for market changes

• Identify & utilize outsourcing opportunities


• Top rental company in the Baltics

• Improve pricing

• Implement common fleet and service network throughout the Baltic countries

• Increase recurring revenues – Modular Space

p 123

Russia business case #1:Hot Rental: Business critical services for key customers

• We provide uninterrupted operation to housing construction, road construction and shopping centers by power and heat generation service

• Turnkey services include– Continuous 24X7 delivery of electricity, heating and

drying of complete houses under construction– Generators, heaters/boilers, connections, hoses– Fuel service, online power/temperature/humidity

control– Capacity planning, installation, phase-in/phase-out

• Added value to customers– Continuous operation & faster project completion– No bad image in public power breaks during shopping– Better quality in concrete construction work and

finishing– Savings in fuel costs and salaries– Total solution service

• Customer examples– YIT Lentek– Lenta hypermarket chain– Renaissance Construction

p 124

• Cramo is recognized top provider of full-scale hoist services

• New lifting technology emerging– High growth potential

– Long term rental relationship

– Typical need in high rise buildings

• Customers perceive added value– Faster project completion

– Savings in total construction costs

– Less workers – less problems

– Total solution service

• Customer example– LLC “StroyBusiness”

– 8 large hoists including operator services

– Several buildings of 100 meters

– Project located in Moscow

Russia business case #2:Leadership in modern construction hoist services

p 125

Cramo CEE East – Summary

• High profitable growth continued until 2008 in the Baltic markets

and Russia

• Strong market position secured during 2009-2010 in the whole region

despite heavy restructuring measures

– Market leadership retained in the Baltics with full Cramo offering and

processes

– Sales returned to rapid growth early 2010 in Russia

• Restoring profitability in CEE East is top priority

• Readiness to face possible market uncertainty in place

• Expansion of fleet and entry plans to new market segments continues

in Russia

p 126

126


FLEET MANAGEMENTMARTIN HOLMGREN, VP

SEPTEMBER 1, 2010


p 127

Introduction and objectives of Group Fleet

Management• Group Fleet Management’s main objective is

to optimise fleet usage of the 180.000 units of rental fleet in the Cramo Group

• Rental fleet is considered a Group asset • Cornerstones for fleet optimisation are:

– Transfer of equipment between Operating Companies, regions, districts and depots

– Investment management including product profitability and product pricing

– Optimising total cost of ownership– Standardisation of fleet and product codes– Common rental system supporting harmonised

KPIs and fleet transfer– Fleet efficiency including internal fleet handling

processes

• The most important fleet optimisation KPIsare:– Time utilisation– Product profitability (Minimum Annual Rental

Revenue per product type)– Lead time measurements, number of days

p 128

Complete range of rental productsLarge capacity with 180.000 units across four product groups

Tools (120.000 units) Access Equipment (12.200 units)

Construction Equipment (3.600 units) Modular Space (41.000 units)

p 129

Sales by product and customer group

Other;

10 %

Modular

space;

32 %

Access

equipment;

23 %

Construction

equipment;

11 %

Tools;

24 %

Other ;

4 %

Households;

3 %

Public sector;

18 %

Other industry;

23 %

Construction

industry;

53 %

Sales by customer segment 2009 (2008) Sales by product area 2009 (2008)

(58 %)

(21 %)

(14 %)

(4 %)

(4 %)

(25 %)

(12 %)

(26 %)

(27 %)

(10 %)

p 130

Time utilisationThe most important KPI for fleet optimisation

Upper TU target starts to indicate;

• Lack of equipment

• Possible lower service level to the customer

• Room for price increases

10 % span

Lower TU target starts to indicate;

• Overcapacity of equipment

• Room for increased internal transfer of equipment

• Possibly divestment of equipment

Example: Hoist

Lower target

60%

Upper target

70%• Cramo Definition of Time Utilization (TU) is;

• TU potential is mainly affected by rental contract length, volume and internal efficiency

• Cramo has unified TU reporting for all OPCOs

• TU is followed daily, weekly, monthly and yearly

• TU targets vary among product groups and product types

• Following 4 types of TU reports are generated monthly for Group benchmarking purposes;

1. Rolling 12 month TU per OpCo

2. Rolling 12 month TU Group

3. TU per month, year to year per OpCo

4. TU per month, year to year Group

• TU is used in all investment decisions

• TU is monitored daily by OpCo product organization and Group fleet management

TU = Number of days rented out / 365 days

Below TU target;

• Overcapacity of equipment

• Internal equipment transfer is necessary

• Divestment of equipment

Time utilization framework

p 131

MARR = Minimum Annual Rental RevenueThe most important tool for product pricing and product profitability

• MARR is an abbreviation for Minimum Annual Rental Revenue

• MARR is a product pricing tool including required rental revenue per day given an assumed time utilization to generate set profitability target

• MARR includes distribution of direct cost, indirect costs, capital cost and profit margin

• Each product type has a MARR target

• MARR is used in the investment approval process to assess profit contribution per product type

• MARR is the basis for development of gross prices and discount structures

MARR framework

MARR - Minimum Annual Rental Revenue

Product

number Description

Latest

Purchase

price

Depreciation

period

Residual

value Interest

Depreciatio

n

Repair&

maintena

nce

Indirect

cost

Total

cost MARR

5,0% 35%

€ years % €/year €/year €/year €/year €/year €/year

1511235 Rider pallet truck, 3-wheel, battery powered, 1600 kg 15 866 7 10% -397 -2 040 -1 600 -2 735 -6 772 7 7491511238 Rider pallet truck, 3-wheel, battery powered, 1800 kg 15 901 7 10% -398 -2 044 -1 600 -2 739 -6 781 7 7601511245 Rider pallet truck, 4-wheel drive, battery powered, 1600 kg 17 231 7 10% -431 -2 215 -2 250 -3 250 -8 146 9 2071511246 Rider pallet truck, 4-wheel drive, battery powered, 1600 kg, lin 29 787 7 10% -745 -3 830 -2 250 -4 724 -11 548 13 3821511255 Rider pallet truck, 4-wheel drive, battery powered, 2500 kg 19 206 7 10% -480 -2 469 -2 250 -3 482 -8 681 9 8641511260 Rider pallet truck, 4-wheel drive, battery powered, 3000 kg 20 890 7 10% -522 -2 686 -3 200 -4 198 -10 606 11 8921511261 Rider pallet truck, 4-wheel drive, battery powered, 3000 kg, Linde40 426 7 10% -1 011 -5 198 -3 750 -6 791 -16 749 19 2381511610 Fork lift diesel, 2000kg 14 414 7 10% -360 -1 853 -721 -2 085 -5 019 5 9071511620 Fork lift diesel, 2500kg 13 079 7 10% -327 -1 682 -654 -1 892 -4 555 5 3601511625 Fork lift LPG, 2500kg 11 630 7 10% -291 -1 495 -582 -1 682 -4 050 4 7661511630 Fork lift diesel, 3000kg 13 706 7 10% -343 -1 762 -685 -1 983 -4 773 5 6171511650 Fork lift diesel, 4000kg 18 636 7 10% -466 -2 396 -932 -2 696 -6 490 7 6371511655 Fork lift LPG, 4000kg 18 636 7 10% -466 -2 396 -932 -2 696 -6 490 7 6371511671 Fork lift diesel, 5000kg Linde 50 532 7 10% -1 263 -6 497 -2 527 -7 310 -17 597 20 7081532610 Jointed stacker, battery portable, 1000 kg 2 696 7 10% -67 -347 -135 -390 -939 1 1051532620 Jointed stacker, battery portable, 1250 kg 2 974 7 10% -74 -382 -149 -430 -1 036 1 2191532630 Jointed stacker, battery portable, 1250 kg 5 427 7 10% -136 -698 -271 -785 -1 890 2 2241532650 Jointed stacker, 1250kg 5 587 7 10% -140 -718 -279 -808 -1 946 2 2901532660 Jointed stacker, Linde 11 945 7 10% -299 -1 536 -597 -1 728 -4 160 4 8951572112 Telescopic handler <2,5 ton <6m 39 690 10 15% -992 -3 374 -1 910 -4 796 -11 072 13 5881572113 Telescopic handler <3 ton <17m 40 075 10 15% -1 002 -3 406 -1 910 -4 833 -11 151 13 6911572122 Telescopic handler <4 ton <17m 55 750 10 15% -1 394 -4 739 -2 650 -6 719 -15 502 19 0351572132 Telescopic handler <4 ton <14m 78 000 10 15% -1 950 -6 630 -3 750 -9 424 -21 754 26 697

1572133 Telescopic handler <4 ton <17m 65 000 10 15% -1 625 -5 525 -3 250 -7 922 -18 322 22 4411572142 Telescopic handler >5 ton <17m 85 000 10 15% -2 125 -7 225 -4 100 -10 277 -23 727 29 1141582132 Telescopic handler roto>5 ton <21m 150 000 10 15% -3 750 -12 750 -7 200 -18 117 -41 817 51 3237212132 Mini crawler crane <3ton<9m 48 930 10 15% -1 223 -4 159 -2 350 -5 910 -13 643 16 7447212142 Mini crawler crane <3ton<15m 64 600 10 15% -1 615 -5 491 -3 100 -7 802 -18 008 22 1027322212 Vertical mast lift <6 m 6 000 10 15% -150 -510 -500 -840 -2 000 2 3817322222 Vertical mast lift <9 m 7 000 10 15% -175 -595 -500 -935 -2 205 2 6497322232 Vertical mast lift <12 m 8 000 10 15% -200 -680 -500 -1 030 -2 410 2 9177323211 Vertical mast lift, self propelled<3m 6 709 10 15% -168 -570 -500 -907 -2 145 2 5717323212 Vertical mast lift, self propelled<6m 8 045 10 15% -201 -684 -490 -1 028 -2 403 2 9137323222 Vertical mast lift electric<10 m 24 277 10 15% -607 -2064 -900 -2 787 -6 358 7 8967323232 Vertical mast lift electric <13 m 29 885 10 15% -747 -2540 -1 100 -3 427 -7 814 9 7087331112 Scissor lift electric <6m 8 800 10 15% -220 -748 -540 -1 127 -2 635 3 1937331122 Scissor lift electric <9m narrow 11 390 10 15% -285 -968 -900 -1 568 -3 721 4 4437331223 Scissor lift electric <9m wide 1,73 m 19 672 10 15% -492 -1672 -900 -2 352 -5 416 6 6627331232 Scissor lift electric <10m narrow 13 662 10 15% -342 -1161 -840 -1 751 -4 093 4 9597331233 Scissor lift electric <10m wide 23 020 10 15% -576 -1957 -900 -2 669 -6 101 7 5607331234 Scissor lift electric <12m wide 31 055 10 15% -776 -2640 -1 100 -3 538 -8 054 10 0227331252 Scissor lift electric <18m 56 285 10 15% -1 407 -4784 -3 950 -7 479 -17 621 21 1877331262 Scissor lift electric <21m 78 013 10 15% -1 950 -6631 -5 450 -10 353 -24 384 29 3287332242 Scissor lift electric <15m 31 055 10 15% -776 -2640 -2 250 -4 165 -9 831 11 7997332442 Scissor lift electric/diesel <15m 38 470 10 15% -962 -3270 -2 700 -5 112 -12 044 14 4827332622 Scissor lift diesel <9m 25 770 10 15% -644 -2 190 -1 800 -3 420 -8 054 9 6877332632 Scissor lift diesel <12m 29 051 10 15% -726 -2469 -2 030 -3 856 -9 081 10 9227332633 Scissor lift diesel <12m double extension 41 182 10 15% -1 030 -3500 -2 880 -5 467 -12 877 15 4877332642 Scissor lift diesel <15m 42 500 10 15% -1 063 -3613 -2 980 -5 646 -13 301 15 9947332652 Scissor lift diesel <18m 45 659 10 15% -1 141 -3881 -3 200 -6 065 -14 287 17 1817332662 Scissor lift diesel <21m 99 800 10 15% -2 495 -8483 -7 000 -13 259 -31 237 37 5627332672 Scissor lift diesel <24m 119 100 10 15% -2 978 -10124 -8 340 -15 816 -37 257 44 8057332682 Scissor lift diesel <27m 150 000 10 15% -3 750 -12750 -8 340 -18 739 -43 579 53 0857332712 Scissor lift diesel <35m 234 450 10 15% -5 861 -19928 -16 410 -31 130 -73 330 88 1877341122 Articulated boom lift electric<10m with jib 31 530 10 15% -788 -2680 -1 890 -4 014 -9 372 11 3707341132 Articulated boom lift electric<13m 34 250 10 15% -856 -2 911 -2 050 -4 358 -10 176 12 3467341142 Articulated boom lift electric<16m 34 624 10 15% -866 -2 943 -1 250 -3 957 -9 016 11 2107341232 Articulated boom lift electric<10m 30 000 10 15% -750 -2550 -1 400 -3 602 -8 302 10 2037341442 Telescopic boom lift electric/diesel<16m 38 025 10 15% -951 -3232 -2 370 -4 890 -11 443 13 8527341742 Articulated boom lift diesel<14m 40 650 10 15% -1 016 -3455 -1 950 -4 909 -11 331 13 9077341743 Articulated boom lift diesel<16m 45 115 10 15% -1 128 -3835 -2 170 -5 451 -12 584 15 4437341752 Articulated boom lift diesel<19m 67 155 10 15% -1 679 -5708 -2 600 -7 771 -17 758 22 0147351452 Telescopic boom lift electric/diesel<19m 70 620 10 15% -1 766 -6003 -4 240 -8 993 -21 002 25 4777351752 Telescopic boom lift diesel<19m 62 308 10 15% -1 558 -5296 -2 990 -7 525 -17 369 21 3187351772 Articulated/Telescopic boom l ift diesel<25m 92 590 10 15% -2 315 -7870 -4 450 -11 186 -25 821 31 689

p 132

MARR in practice

Scissor lift 6m platform

SE

NO

DK

0,0

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

90,0

0 10 20 30 40 50 60 70

Avg daily price

Tim

e utilisation

Area 4Area 3

Area 2Area 1

OPCO 1

OPCO 3

OPCO 2

MARR curve

p 133

Transfer of equipmentCramo product search tool

• Cramo has a well harmonized and standardised fleet

• Guidelines and processes for intercompany trading have been implemented

• A unique search tool for available equipment recently launched

• KPI framework supporting the transfer guidelines implemented

• An appropriate investment process implemented with clear checkpoints regarding time utilisation fulfillment, transfer possibilities and MARR fulfillment

• Centralised purchasing from Fleet Management is well established

Cramo Group framework supporting

fleet transfers

p 134

Early

selling

point

Optimising total cost of ownership

• Equipment brand selection based on a combination of price, technical life time, brand recognition, second hand value, spare part cost, service intervals & supplier support

• Up-time of the fleet is crucial to optimise total cost of ownership. One day in a workshop is lost revenue that can never be regained

• Several supplier contracts for service and repair with guaranteed lead times, contributing to lower total cost of ownership

• A well-functioning service and maintenance structure is important to avoid breakdowns. Central workshops have been implemented on many markets with very positive lead time and quality effects

• A central structure for used equipment sales is fully developed and implemented

• Guidelines for product life times have been implemented. The optimal point to sell is when used equipment value is still good, the service and maintenance cost has not yet started to increase and the product appearance is still sufficient

Most important areas for total cost of

ownership optimization

Product Area Early selling point Late selling point

Tools 4 6

Access equipment 8 12

Construction Equipment 7 10

Modular Space 15 20

Late

selling

point

DepreciationService

costs

Used equipment

value

Used equipment sales

p 135

Fleet efficiency, to reduce internal lead times

Equipment

Available for

rental

Equipment in

return control

Equipment in

repair or

service

CUSTOMER

A major area for improvements

Equipment in

rental

DEPOT

• A great number of equipment is returned daily from customers to the Cramo depot network

• All machines that have been rented out are return-checked, including cleaning, quality and safety inspection

• A constant flow of equipment is passing the workshops for repair or maintenance

• All OPCOs have implemented harmonised processes for return control and repair supported by local rental systems

• Efficient processes in return handling and repair are substantially improving time utilisation

p 136

Fleet Management – Summary

• Fleet management focus areas– Increase time utilisation

– Fleet transfers with product search tool

– Fleet efficiency with improved internal processes

– Optimisation of total cost of ownership

– Investments including product profitability and product pricing

– Fleet and code harmonisation

• Fleet KPIs– Time utilisation

– Product profitability, MARR – Minimum Annual Rental Revenue

– Internal fleet related lead times

p 137

137


MODULAR SPACE STRATEGYOSSI ALASTALO, SVP

SEPTEMBER 1, 2010


p 138

Modular Space in Cramo Group

Cramo Modular Space Organization % of Group sales 2009 (2008)

Modular Space order book

32%

(27%)32%

(27%)

0

20

40

60

80

100

120

2006 2007 2008 2009 Q2/2010

Modules business steering group led by Ossi Alastalo

with one member from fleet management and each

country organization

p 139

Application Overview

Non-Construction Applications Construction Applications

Modular space units for intermediate

to long term usage with high standard

Modular space units for short

term usage in general rental

Offices for the

manufacturing industry

and the public sector

Construction Site offices,

storage containers

and trailers

Site huts for labour

Sanitation units

Schools and pre-schools

for the public sector

Accommodation

Synergies

p 140

OFFICE SPACE ACCOMMODATION

SCHOOLS

Non-Construction Applications

Solutions for schools, daycare, offices, accommodation or premises for any other area of use

In total app. 15 000 units DAYCARE

p 141

Cramo Modular SpaceFlexibility to Our Customers

AMOUNT

OF SPACE

PERMANENT BUILDINGS

MODULAR SPACE

FROM CRAMO

TIME

CUSTOMER’S TOTAL

DEMAND FOR SPACE

PHASE 1

PHASE 2

PHASE 3

� Reduce or expand space depending on your space needs

� Rent modular space from Cramo when, where and for as long as you need them

� Keep the premises you invest in to a minimum – use Cramo for quick expansion

p 142

Cramo Modular Space – Flexibility to Our

Customers

Phase 1

Phase 3

Phase 2

Flexibility:

Easy to adapt the number of units according to need – expand or reduce.

Simplicity:

A new building can be erected in only a few

weeks.

Interchangeability:

Standardization makes additions and reductions easy and cost efficient

Flexibility, simplicity and interchangeability bring benefits to the customer

p 143

Modular Space Market in the Nordic Countries

Market by Country in 2009* (EURm) Market by Application in 2009* (EURm)

Schools Daycare Off ices Accommodations (non-constr.) OtherSweden Finland Denmark Norway

Total Nordic market for non-

construction applications: EUR 170m

70

25

30

45 45

4545

20

15

* Based on management estimates

p 144

Modular Space – Nordic Countries

Key Competitors CommentOur Position*

FINLAND:

RamirentAlgecoCasatino

1.

Cramo is the leading player in the Nordic modular space market


SWEDEN:

ExpandiaTemporentIndus

NORWAY:

MalthusIndusRamirent/Bautas

DENMARK:

AGJ PitznerRamirentJytas

1.

2.

1.

Cramo the clear market leader in a

still underdeveloped market

Cramo the market leader in a

developed and competitive market

Cramo strong #2 player with clear

potential to increase market share

Cramo the market leader in a

highly fragmented market with

clear potential to increase market

share

p 145

Estimated Modular Space Market Growth in

the Nordic Countries

Total market 2009*:

EUR 170m

Total market 2013E*:

EUR 225m

Overall

Market C

AGR 09-1

3: 7%

Growth driven by increasing demand for modular space solutions, increasing quality

requirements, tighter building regulations and green thinking

170

225

TIme

Quality


p 146

Growth Drivers for Modular Space in CEE

CEE Markets

RUSSIA ESTONIA LIT/LAT POLAND

� Rental of modular space currently almost non-existent in these countries, offering potential to increase rental penetration

� Significant demand for high quality modular space in connection with industrial investments made into Russia by western companies

� Demonstrated demand from municipalities including schools and daycare in the Baltic countries

� Demand for daycares and social housing building an interesting opportunity in Poland (driven by legislation)

� CEE markets offer major long-term growth potential

� Possibility to achieve first-mover advantages and shape the market

� First projects have been set-up in the Baltic countries and the

suitable concept for Russia is being investigated

p 147

Strategic Priorities and Targets 2010-13

� Further increase market share in existing markets, especially in Norway and Denmark

� Create new market demand and shape the market in CEE

� Improve cost efficiency, for example, through efficient fleet management

� Develop product and service offering to different segments

� Continue to strengthen the modular space organizations in the Nordic countries and CEE

Strategic Priorities Targets

� Cramo’s modular space growth to exceed the market growth

� Maintain current leading market positions in Finland and Sweden and strengthen positions in Norway and Denmark

� Seize the opportunity in CEE

� Create new customer value and contribute to Cramo’s shareholder value creation

p 148

Modular Space Strategy – Summary

� Driving growth of the modular space business is one Must-win-battle for Cramo in 2010-2013

� Transfer of knowledge from Sweden and Finland underway to support the growing modular space organisations in Norway, Denmark and CEE

� Utilization of the existing standardised Nordic fleet, launch of new products and proven R&D competence will enable expansion in the Nordic countries

� Cramo is well-positioned to take advantage of the foreseen change in demand for higher quality and greener solutions

� Concrete steps taken to capture the significant growth potential in the developing markets of CEE

� Modular space is a core product area offering stable cash flows and synergies with general rental

p 149

REFERENCES

RIDDERSANDS SCHOOL, NORWAY

• Riddersand School in Fet municipality outside Oslo is renting 112 units of C40 modules hosting 260 students and staff of 43. Rental period is eighteen months while the new school is being built on the neighbouring plot

• Cramo Instant AS stands as a total supplier of the whole project, with the performance of water and sewage, power, preparation, assembly and engineering

• This is the largest school in Norway being delivered by Cramo with three pavilions in two storeys accommodating everything from personnel, classrooms, programs and library

p 150

REFERENCES

LKAB MINING BUILDING SITEKIRUNA, SWEDEN

• Sweden’s largest mining company, LKAB, have been renting modular space units being used as field project offices as well as a machinery rental depot since 2005

• In 2005-2008, a full service contract was signed with Cramo delivering site offices, dining rooms, conference rooms, locker rooms, sanitary facilities and storage facilities, in total 380 units. The agreement also includes facility management services like, transportation services, cleaning, furniture, AV equipment, phone and IT connections etc.

• The contract is still in operation, but with reduced capacity

p 151

REFERENCES

GENTOFTE HOSPITAL,DENMARK

• Gentofte Hospital in Denmark is renting 62 units of Cramo’s C40 system

• With an area of 1.750 m2 the premises are hosting an ambulatory, doctors’offices, respiratory ward and an eye clinic on two floors

• The first premises were assembled in 2008 and shortly after an additional five modular buildings

• Gentofte Hospital is one of a number of hospitals in Denmark that are using Cramo modules during the major hospital reform that is currently taking place

p 152

REFERENCES

ACCOMODATION FOR VISUALLY IMPAIRED,FINLAND

• Cramo Finland has previously delivered several modular spaces for Jyväskyläcity and around the Jyväskylä area. Customer relationship was already solid and Cramo had several references nearby

• During 2008-09, Cramo delivered two accommodation buildings (2.056 m²and 1.810 m²), and one office building (246 m²).

• Rental period 36 months

• Challenging case due special requirements for the users

153


SUMMARY

VESA KOIVULAPRESIDENT AND CEO

SEPTEMBER 1, 2010


p 154

Summary: Cramo Group’s strategy 2010-2013

154

MissionMission

Building flexibility and efficiency through rental solutions

VisionThe role model in rental

VisionThe role model in rental

TargetsTargets

Strategic targets• Customer’s first choice • Best in town: #1 or possibility to become #1• Grow profitably faster than the market• Driver of rental development

Financial targets• Sales growth > 10 % p.a.• EBITA-% > 15 %• ROE-% > 15 %• Gearing maximum 100 %• Profit distribution policy: about one third

ValuesValues

CommitmentCredibilityCreativity

Strategy crystallization: Rolling out the Cramo Concept with Cramo Processes and Cramo People

Must-Win Battles

Strategy crystallization: Rolling out the Cramo Concept with Cramo Processes and Cramo People

Must-Win Battles

Renew Cramo Concept

Implement Cramo

Processes

Develop Cramo People

Drive Modular Space Growth

Be “Best in Town”, Win Next

Markets

p 155

Q&AQ&A

cramo plc · p 5 cramo group in brief finland sweden norway denmark central and eastern europe...

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