rakennuskonepäivät...business conditions and rental activity improving notably in q3/2013, driven...
TRANSCRIPT
FOR A GREAT DAY AT WORK
Rakennuskonepäivät 7.11.2013
Vesa Koivula
CEO & President
Cramo Plc
2
Contents
1. Cramo in brief and market outlook
2. Rental business growth drivers
3. European Rental Association
Cramo’s path from a domestic company to an
international group
1953 2005 2000
Domestic growth Start of
internationalisation
International
growth
€ 77 m
€ 54 m
Sa
les
(€
m)
Company
founded
(1953)
2011
€ 680 m
Operational
excellence
Acquisition
of Cramo
Group (2006)
Acquisition
of Theisen
Group
(2011)
3
Number of depots
09/2013: 360
Russia
Denmark
Germany Poland
Czech Republic
Austria Hungary
Slovakia
Ukraine
Belarus
Lithuania
Latvia
Estonia
Norway
Sweden
Finland
Romania
Moldova
Bulgaria
Slovenia
Croatia
Bosnia and
Herzegovina Serbia
Macedonia
Albania
Switzerlan
d
Kalinin-
grad
Today
Cramo’s market position today
• 3rd in
European
rental
market
• Presense in
14 countries
65
70
75
80
85
90
95
100
105
110
115
120
125
Jan
-03
Ap
r-0
3
Jul-
03
Oct
-03
Jan
-04
Ap
r-0
4
Jul-
04
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-04
Jan
-05
Ap
r-0
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-05
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-06
Ap
r-0
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-06
Jan
-07
Ap
r-0
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-07
Jan
-08
Ap
r-0
8
Jul-
08
Oct
-08
Jan
-09
Ap
r-0
9
Jul-
09
Oct
-09
Jan
-10
Ap
r-1
0
Jul-
10
Oct
-10
Jan
-11
Ap
r-1
1
Jul-
11
Oct
-11
Jan
-12
Ap
r-1
2
Jul-
12
Oct
-12
Jan
-13
Ap
r-1
3
Jul-
13
Eco
no
mic
Sen
tim
ent
Ind
icat
or
(ESI
)
Finland Sweden Germany Denmark Poland
Lead indicator: economic sentiment 2003-13 Economic sentiment improving in Sweden, Germany, Denmark and
Poland. No clear visibility yet of improving sentiment in Finland
4
Source: European Commission, October 2013
Long-term
average
Mar-09
Jan-11
-60
-40
-20
0
20
40
60
80
Jan
-03
Ap
r-0
3
Jul-
03
Oct
-03
Jan
-04
Ap
r-0
4
Jul-
04
Oct
-04
Jan
-05
Ap
r-0
5
Jul-
05
Oct
-05
Jan
-06
Ap
r-0
6
Jul-
06
Oct
-06
Jan
-07
Ap
r-0
7
Jul-
07
Oct
-07
Jan
-08
Ap
r-0
8
Jul-
08
Oct
-08
Jan
-09
Ap
r-0
9
Jul-
09
Oct
-09
Jan
-10
Ap
r-1
0
Jul-
10
Oct
-10
Jan
-11
Ap
r-1
1
Jul-
11
Oct
-11
Jan
-12
Ap
r-1
2
Jul-
12
Oct
-12
Jan
-13
Ap
r-1
3
Jul-
13
Co
nst
ruct
ion
Co
nfi
den
ce In
dic
ato
r (m
ean
-ad
just
ed)
Finland Sweden Germany Denmark Poland
Lead indicator: construction confidence 2003-13 Construction confidence improving in GER. SWE and PL most recently
upwards but still below l-t average. FIN and DEN, no improvement yet
5
Source: European Commission, October 2013
Long-term
average Jun-09
Feb-11
6
Europe shows signs of recovery in 2014 Main Cramo markets amongst most positive
Southern periphery countries also expected to turn to growth in 2014
Real GDP growth % 2013E 2014F
Finland -0,6% 1,1%
Sweden 0,9% 2,3%
Norway 1,6% 2,3%
Denmark 0,1% 1,2%
Germany 0,5% 1,4%
Poland 1,3% 2,4%
Russia 1,5% 3,0%
United Kingdom 1,4% 1,9%
France 0,2% 1,0%
Ireland 0,6% 1,8%
Spain -1,3% 0,2%
Italy -1,8% 0,7%
Portugal -1,8% 0,8%
Greece -4,2% 0,6%
Source: International Monetary Fund (IMF), World Economic Outlook, October 2013
Main Cramo
markets
European
countries
with
sovereign
debt issues
Other big
European
economies
• Policy actions have
reduced some
important tail risks in
the Eurozone and
stabilized financial
markets
• Growth is beginning to
resume. Recent
indicators suggest that
activity would stabilize
in the periphery and
recover in the core
• Main Cramo markets
projected to
experience moderate
growth in 2014
Nordic construction order backlogs 2008-Q2/2013 Q2/13 backlog was up by 3.7% from Q1/13 (+8.0% in local currency), but still
down by 0.9% year-on-year (-0.3% in local currency). Cramo’s Nordic sales
have correlated with changes in backlog with a lag of about 3-4 quarters
7
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
0
5
10
15
20
Q1
/20
08
Q2
/20
08
Q3
/20
08
Q4
/20
08
Q1
/20
09
Q2
/20
09
Q3
/20
09
Q4
/20
09
Q1
/20
10
Q2
/20
10
Q3
/20
10
Q4
/20
10
Q1
/20
11
Q2
/20
11
Q3
/20
11
Q4
/20
11
Q1
/20
12
Q2
/20
12
Q3
/20
12
Q4
/20
12
Q1
/20
13
Q2
/20
13
Ch
ange
in vo
lum
e, %
No
rdic
co
nst
ruct
ion
ord
er
bac
klo
g (E
UR
bill
ion
)
Skanska NCC YITVeidekke Lemminkäinen PeabSRV Year-on-year change in order backlog Y-o-Y change in order backlog (with constant FX rates)Year-on-year change in Cramo's Nordic total sales, R12M
8
Rental vs. construction growth: Case Finland According to statistics and estimates, rental growth clearly surpasses
construction growth over the cycle. Rental is an industrial service
business with a number of additional growth drivers to construction
Source: Construction growth rates from Euroconstruct (VTT is the Euroconstruct partner institute in Finland), June 2013.
Rental growth rates and estimates from VTT, June 2013
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
2010 2011 2012E 2013F 2014F
% c
ha
ng
e f
ro
m p
re
vio
us y
ea
r i
n r
ea
l te
rm
s
Rental market growth Construction output growth
90
95
100
105
110
115
120
2009 2010 2011 2012E 2013F 2014F
Fin
nis
h r
en
tal
an
d c
on
str
ucti
on
vo
lum
e i
nd
ex
(2
00
9=
10
0)
Rental market Construction market
-60 % -40 % -20 % 0 % 20 % 40 % 60 % 80 %
UK
Germany
Nordic region
Multinationals
All Europe
Benelux
Italy
France
Spain
9
Confidence among European rental improving Business conditions and rental activity improving notably in Q3/2013,
driven by UK, Germany and the Nordic region
Source: ERA / IRN Rental Tracker Survey June 2009 – September 2013 (International Rental News/European Rental Association)
Improving
Declining
Current rental activity & conditions in Europe Q3/13 Current regional business conditions Q3/13
Improving Declining
-80 %
-60 %
-40 %
-20 %
0 %
20 %
40 %
60 %
80 %
Q2/0
9
Q3/0
9
Q4/0
9
Q1/1
0
Q2/1
0
Q3/1
0
Q4/1
0
Q1/1
1
Q2/1
1
Q3/1
1
Q4/1
1
Q1/1
2
Q2/1
2
Q3/1
2
Q4/1
2
Q1/1
3
Q2/1
3
Q3/1
3
Current business conditions Quarterly activity year-on-year
10
Rental business growth drivers
11
Growth drivers in rental business
Increasing rental
penetration,
outsourcing
Rental-related
services
Exchange of
manpower for
machinery
Environmental
concerns, energy
efficiency and
sustainability
Renovation
construction
Demographic
changes
Rental is a
growing
industrial
services
business
1 2 3
4 5 6
12
Most European rental markets expected to grow in 2014-15 European Rental Association’s estimates from October 2013
Source: European Rental Association, The European Equipment Rental Industry 2013 Report, October 2013
4,5
%
4,5
%
4,0
%
3,8
%
3,2
%
2,7
%
2,6
%
2,3
%
2,1
%
1,7
%
1,4
%
-2,5
%
-3%
-2%
-1%
0%
1%
2%
3%
4%
5%U
nit
ed K
ingd
om
Po
lan
d
Fin
lan
d
Ge
rman
y
No
rway
Net
her
lan
ds
Swed
en
Den
mar
k
Ital
y
Bel
giu
m
Fran
ce
Spai
n
No
min
al r
enta
l gro
wth
, CA
GR
20
13
-15
13
European Rental Association
(ERA)
14
ERA is an extension to national rental associations
• Representative association of
the equipment rental sector in
Europe
• Represents over 4,700 rental
companies in Europe, either
directly or through 13 national
rental associations
• Potential to grow up to ~ 20
associations in the future
15
ERA’s key mission is to support the growth of European rental industry
THROUGH:
• Promotion of the Rental Concept
• Economic studies and their impact on decision makers from construction industry
to financial markets
• Involvement in European regulations
– in preparation and/or in revision
– in connection with the national associations
16
ERA has active, regularly meeting committees
• Promotion
– promoting the rental concept; attracting and keeping talents to the rental industry
• Statistics
– developing definitions and methodologies for statistics; increasing international cooperation
• Equipment Technology
– providing a forum for equipment manufacturers and rental companies to discuss issues of
common interest
• Sustainability
– delivering tools to communicate on resource efficiency and sustainability of rental
• National Rental Associations
– monitoring and providing input in EU policies
SUCCESS THROUGH EXPERTISE, INDUSTRY KNOWLEDGE AND COMMITMENT OF THE
MEMBERS
17
Worldwide and European Rental Markets
• GRA (USA, Europe, Canada, Brazil,
Australia and New Zealand) shares a
total rental revenue number of US$
66 billion for fiscal year 2011
• Worldwide total rental revenue
estimated in 2011 at US$ 80/85 billion
of which Europe represents around
33% to 35%
Source: The European Rental Industry 2013 Report, October 2013
CountryMarket size
(EUR billion)
United Kingdom 6,1
France 3,9
Germany 3,5
Sweden 1,5
Spain 1,4
Italy 1,4
Norway 0,9
Total Europe 23,0
MAIN RENTAL MARKETS IN EUROPE IN 2012
18
Construction Industry Penetration in 2012 0
,50
%
0,7
0 %
0,8
5 %
0,9
5 %
1,0
5 %
1,1
5 % 1,3
5 %
1,4
0 %
1,4
5 %
1,6
0 %
1,7
0 %
2,0
5 %
2,5
0 %
2,6
0 %
3,3
5 %
0,0 %
0,5 %
1,0 %
1,5 %
2,0 %
2,5 %
3,0 %
3,5 %
4,0 %
Po
lan
d
Rem
ain
ing
EU27
+ E
FTA
Ital
y
Bel
giu
m
Spai
n
Net
her
lan
ds
Ger
man
y
Tota
l Eu
rop
e
Fin
lan
d
Fran
ce
Den
mar
k
No
rway
USA
Un
ited
Kin
gdo
m
Swed
en
Co
nst
ruct
ion
ind
ust
ry p
enet
rati
on
rat
e, 2
01
2
Source: The European Rental Industry 2013 Report, October 2013
19
Thank You!