CRAMO PLC FINANCIAL STATEMENTS POWERING YOUR BUSINESS

Transcription

1 CRAMO PLC FINANCIAL STATEMENTS POWERING YOUR BUSINESS

2 CEO Vesa Koivula CFO Martti Ala-Härkönen 2

3 Contents Cramo Group in brief and market outlook Interim report Q4/2008 Actions to ensure competitiveness in a weakening market Appendix Additional financial information 3

4 Cramo Group in brief Good 2008 performance in a challenging operating environment History 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 November 24, 2006 Finland Key financials 1-12 / 2008 Sales 579,8 MEUR (+16,8 %) EBITA 102,2 MEUR (+6,5 %) EPS, undiluted EUR 1,59 (-15,6 %) EPS, diluted EUR 1,59 (-15,1 %) Proposed dividend 0,40 (0,65) per share Norway Denmark Sweden Estonia Latvia Lithuania St. Petersburg Russia Moscow Yekaterinburg Depot network 303 depots (12/2008) 11 countries Germany Poland Belarus Personnel (average 1-12/2008) Czech Republic Slovakia Ukraine Business segments Equipment rental Modular space Slovenia Croatia Austria Hungary Romania Moldova No. of rental equipment Approximately Bosnia and Herzegovina Macedonia Albania Serbia Bulgaria 4

5 Cramo sales growth Cramo target > 18% annual growth 700 Annual sales, EUR m ,3 Pro Forma growth: +20,4% Actual growth: +422,6% 402,4 Actual growth: +23,4% Growth ex. Cramo Netherl.*: +26,6% Organic growth: +24,1% 496,4 Actual growth: +16,8% Growth in local currencies: +19,5% Growth ex. Cramo Netherl.*: +17,5% Organic growth: +12,4% 579, , Actual Pro Forma *Excluding Cramo Netherlands business operations. Cramo Netherlands was divested on March 31,

6 Cramo EBITA growth Cramo target > 18% EBITA margin EBITA-% 120 P.F. 12,2% / Act. 23,3% 18,1% 19,3% 17,6% Annual EBITA, EUR m ,8 Pro Forma growth: +78,4% Actual growth: +304,4% 72,8 Actual growth: +31,8% 96,0 Actual growth: +6,5% 102,2 0 18, Actual Pro Forma 6

7 Global economic depression The global financial crisis has escalated into general economic downturn, which has worsened particularly after Q Many governments are taking sizable economic stimulus packages into use. The full impact of these packages is not yet visible Oil and raw material prices have declined and inflationary pressures are subsiding Significant fluctuations in currency exchange rates particularly in Q Years are expected to be very challenging and filled with uncertainty 7

8 Further declining economic growth prospects 0,5% world output growth in 2009; 3,0% growth expected in 2010 GDP growth 2008E GDP growth 2009E 8 % 8 % 6 % 6 % 4 % 4 % 2 % 2 % 0 % Apr-07 Jun-07 Aug-07 Oct-07 Dec-07 Feb-08 Apr-08 Jun-08 Aug-08 Oct-08 Dec-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 GDP growth 2008 GDP growth 2009 Jan-09 0 % -2 % -2 % -4 % -4 % -4 % Total w orld US Euro area Japan CEE CIS Source: IMF Economic Outlook April 2007 January

9 Slowdown also in construction Year 2009 challenging, recovery currently expected in % 15 % Change in construction output (real, %) 10 % 5 % 0 % -5 % Byggindustrier**: -6% -11% F 2010F 2011O -10 % -15 % RT*: -3% Finland Sweden Norway Denmark Baltics CEE*** Source: Euroconstruct, December 2008 *Rakennusteollisuus RT, October 2008 **Sveriges Byggindustrier, December 2008 ***Includes Poland, Czech Republic and Slovakia 9

10 Confidence in the rental business is deteriorating Overall confidence Growth expectations Source: International Rental News, November

11 Impact of turmoil on Cramo Group Determined actions to ensure competitiveness Cramo Group s business performance was nearly in line with Group targets in Economic uncertainty has substantially increased since Q Continued difficult market situations in the Baltics and Denmark; impact of slowdown spread to other Nordic countries during Q4 Modular space is performing well, bringing stability to the Group s operations Fast-response profitability and efficiency improvement measures started already in H in select markets and expanded to other markets in H2 Number of staff was reduced by about 270 in 2008 through dismissals and layoffs of permanent staff, also other cost adjustment measures taken Systematic adjustments to the changing market situation protected the FY 2008 profits Staff reductions likely to continue in 2009, also other cost adjustment measures Cost reduction measures expected to bring cost savings of at least EUR 25 million in 2009 Increased focus on sales activities, specific focus on growth pocket segments, e g, public infrastructure investments, renovation, stimulus program initiatives Further measures taken to improve business agility, aiming at (2009): Solid cash flow Lower net interest-bearing liabilities Fleet optimisation Group-wide Profitability at best possible level 11

12 Q4 /

13 Cramo quarterly sales development Growth levelled out in Q4/2008 Y-o-Y growth 08 vs ,2% (+21,5%)** +32,3% (+32,3%)** +20,7% (+20,7%)** -0,3%* (-0,3%)** Y-o-Y growth 07 vs ,4% (+29,2%)** +20,3% (+24,6%)** +22,2% (+25,7%)** +23,3% (+27,2%)** 180 Quarterly sales (EUR million) ,6 107,3 126,8 96,7 154,0 155,7 129,0 116,4 105,5 116,6 143,8 143, Q1 Q2 Q3 Q actual 2007 actual 2008 actual Note: Organic growth 1-12/2008 amounted to 12,4% * Growth in local currencies in Q ,7% ** Growth from continuing operations, excluding the Netherlands, which was divested by the end of Q107 13

14 Cramo quarterly EBITA development EBITA declined in Q4/2008 Profitability increased in Modular Space, but declined particularly in Western Europe and CEE EBITA-% 11,8% 15,5% 13,7% 15,6% 19,3% 19,9% 23,7% 23,8% 22,0% 19,7% 18,2% 13,8% 40 Quarterly EBITA (EUR million) ,8 16,7 17,4 15,1 22,4 30,7 25,0 30,7 34,2 22,9 26,1 19,8 5 0 Q1 Q2 Q3 Q actual 2007 actual 2008 actual 14

15 Quarterly EPS performance (diluted) EPS in Q4/2008 decreased compared to 2007 Y-o-Y growth 08 vs. 07 Quarterly diluted EPS (EUR) 0,70 0,60 0,50 0,40 0,30 0,20 0,10-7,1% +8,3% -4,8% -54,2% 0,62 0,59 0,52 0,48 0,49 0,48 0,43 0,34 0,31 0,28 0,26 0,21 0,22 0,17 0,14 0,08 0,00 Q1 Q2 Q3 Q Note: 2005 EPS is for Rakentajain Konevuokraamo 15

16 Capital Expenditure Growth investments brought to end in H2, investment holiday in 2009 Gross CapEx Gross CapEx / EBITDA & Depr ,7 4,0 Quarterly gross capital expenditure (EUR million) ,6 40,8 58,4 52,2 50,8 35,2 31,7 31,9 28,8 27,8 27,7 Quarterly gross CapEx to depreciation or EBITDA 3,5 3,0 2,5 2,0 1,5 1,0 0,5 0 0,0 Q1 Q2 Q3 Q Q1/06 Q2/06 Q3/06 Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Gross CapEx / EBITDA Gross CapEx / Depreciation Note: Gross CapEx does not include operational leasing or acquisitions. 16

17 Cash flow Strong cash flow from operations cash flow after investments turned positive in Q and was EUR 13,2 million Quarterly cash flow from operations (EU R m) Cash flow from operations Cash flow after investments ,4 16,4 15,0 27,7 35,8 34,3 60,4 Q1 Q2 Q3 Q4 CFO 2007 CFO ,6 CFO / Sales 2007 CFO / Sales 2008 Note: CFO = Cash flow from operating activities 45 % 40 % 35 % 30 % 25 % 20 % 15 % 10 % 5 % 0 % Quarterly cash flow from operations to sales Quarterly cash flow after investments (EUR million) ,2-68,1-20,6-38,9 13,2 Q1 Q2 Q3 Q4-0,8-1,9-2,0 Acquisitions EUR 28,5m Acquisitions EUR 8,6m Cash flow after investments 2007 Cash flow after investments

18 Capital structure Currency fluctuations halted the strengthening of capital structure in Q lower net interest-bearing liabilities expected in 2009 Gearing Equity ratio ,9 % 106,9 % 126,5 % 124,0 % 118,4 % 151,3 % 115,8 % 109,1 % 147,1 % 104,6 % 109,4 % 149,3 % Equity ratio % 160 % 140 % 120 % 100 % 80 % 60 % Gearing % 37,1 % 35,9 % 39,1 % 35,2 % 36,9 % 32,0 % 37,0 % 38,2 % 32,4 % 38,2 % 37,3 % 32,4 % 45 % 40 % 35 % 30 % 25 % 20 % 15 % 40 % 10 % 20 % 5 % 0 % 0 % Q1 Q2 Q3 Q Q1 Q2 Q3 Q

19 Cramo business thermometer Cash flow and deleveraging main priorities in a cooling-down market Sales growth Debt position Gearing Actual 2007 Actual 2006 Target +18% Actual % +20% +15% Debt increasing Cash neutral Gearing increasing Gearing stable +10% +5% Cash generative Gearing decreasing Note: Percentages are approximate and sensitive to, among others, market development, business mix, price levels, utilization ratios, profitability, gross CapEx and financing mix. 19

20 Debt structure and maturity Increasing available facilities, good maturity structure 600 Debt structure Debt/facitility maturity ,2 23,2 5, ,4 20,0 Interest bearing liabilities (EUR m) ,6 290,4 4,5 4,9 100,0 30,0 Interest bearing liabilities (EUR m) ,5 23,2 44,8 45,9 36,7 125,0 112,7 27,9 0 Interest bearing liabilities ( ) Bank & Pension loans Repurchase liabilities Rent advances Finance lease liabilities Commercial Other papers 70,0 Open commitments* ( ) Open commitments non-current Open commitments current 0 29,4 28,3 30,0 22,4 11,3 13,8 13,8 13,8 26, Other (Repurchase liabilities, rent advances and other) Commercial papers Finance lease liabilities Current (2009) loans drawn from facilities maturing in 2013 Bank & pension loans Other *Includes only bank loan facilities, excluding leasing facilities 20

21 Value of main loan covenants at year-end 2008 Covenant Maximum value ( ) Actual value ( ) Gross debt to EBITDA (maximum) 3,35 : 1 2,95 : 1 Interest coverage ratio (minimum) 5,00 : 1 6,67 : 1 Equity ratio % (minimum) 30,0 32,4 Actual level of Gross debt to EBITDA quarterly determines the interest rate of the long-term syndicated loan within a fluctuation range of 0,5% p.a. Maximum Gross debt to EBITDA covenant value to decline to 3,00 : 1 in Q

22 Impairment tests and key sensitivities FY 2008 Goodwill teur (Group total ) Total assets tested, teur (Group total ) Finland Sweden Key assumptions used in value-in-use calculations: Equipment Rental Western Europe CEE Modular space EBITA, % Growth rate, CAGR, % 5-year period Growth rate, % beyond 5-year period Group WACC (pre-tax), % CGU-related risk component, % CGU discount rate (pre-tax), % EBITA, % max decrease in %-points Discount rate, %, max increase in %-points 15,0 18,0 2,1 1,0 8,7 1,6 10,3 8,9 9,0 16,0 21,0 2,0 1,0 8,7 1,5 10,2 11,0 9,7 0,0 14,2 1,0 3,0 1,7 2,5 10,4 11,2 0,1 3,5 0,1 2,9 2,3 6,0 11,0 14,7 Sensitivity analysis of main assumptions (maximum change, after which the value in use = carrying amount): 1,0 8,7 0,0 31,3 2,1 28,7* 1,0 8,7 0,1 5,5 0,1 3,3 24,0 30,2 1,8 2,9 1,0 8,7 0,3 9,0 2,0 15,5 0,7 12,4 *CAGR is high in certain CGU s where Cramo has expanded in 2008 and full-year sales have not yet been accumulated 22

23 Operational hedges & contingency plans in use Risk mgmt item 2008 highlights priorities Proactive monitoring Control of asset intensity Control of business exposure Control of customer exposure Control of geographic exposure Contingency planning Monthly follow-up of forward-looking indicators implemented Increased volume of fleet transfers and external sales; improved processes Investments into modular space business, synergies between ER and MS Focus on longer-term contracts and outsourcing agreements Focus in other industry and public sector Number of active customers increased from appr. 85,000 to > 90,000 Biggest customer < 5% of Group sales Credit control activities tightened Dedicated investments into CEE - share of sales from 11,6% to 13,2% ( ) New markets entered during year: Yekaterinburg, Kaliningrad, Slovakia Implementation of contingency plans started in Q2 (Baltics) and Q3 (other mkts) 270 staff reductions, other cost savings Increased focus on fwd-looking indicators Further development of indicators Investment holiday Return of equipment on operational leases and use of break-up options Focus on external sales of equipment Investment and development focus on the modular space business increased Increased focus on longer-term contracts and outsourcing agreements Further development of other industry and public sector segments Further development of key customer relations Further focus on credit control activities Continued development of the CEE operations (focus on existing / new mkts) having emerging markets available for efficient fleet transfers Next rounds of contingency planning Follow-up of contingency plans as part of normal business (milestone structure) 23

24 18,0 % 16,7 % 18,5 % 19,5 % 18,4 % 17,7 % 14,9 % 16,9 % 25 % 22 % 20 % 15 % 10 % 5 % 0 % Q2/08 Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 ROE-% 17,6 % 18,7 % 19,5 % 19,8 % 19,3 % 18,7 % 19,0 % 18,7 % Q3/08 Q4/08 Cramo Group financial targets Sales growth and EBITA margin fell below targets in Q Sales growth, rolling EBITA margin, rolling ROE % 30 % 25 % 20 % 15 % 10 % 21,5 % 23,0 % 24,1 % 23,4 % 21,1 % 24,2 % 23,7 % 16,8 % Rolling 12-month EBITA-% 25 % 20 % 18 % 15 % 10 % 18 % 18 % Rolling 12-month sales growth (y-o-y) % 5 % 5 % 0 % 0 % 24

25 Sales by segment Sales 1-12/2008 Sales 1-12/2007 EUR 579,8 million EUR 496,4 million Modular space 13,6 % Finland 15,2 % Modular space 15,3 % Finland 15,1 % Central and Eastern Europe 13,2 % Central and Eastern Europe 11,6 % Western Europe 17,3 % Sweden 40,7 % Western Europe 15,4 % Sweden 42,7 % Equipment rental 86,4 % Equipment rental 84,7 % 25

26 EBITA by segment EBITA 1-12/2008 EBITA 1-12/2007 EUR 102,2 million EUR 96,0 million Modular space 23,3 % Finland 14,8 % Modular space 18,4 % Finland 13,8 % Central and Eastern Europe 9,8 % Western Europe 1,5 % Sweden 50,6 % Central and Eastern Europe 16,2 % Western Europe 6,2 % Sweden 45,5 % Equipment rental 76,7 % Equipment rental 81,6 % 26

27 Equipment rental Finland 10-12/ 10-12/ Change 1-12/ 1-12/ Change (EUR 1 000) % % Sales ,8 % ,1 % EBITA ,3 % ,7 % EBITA-% 15,6 % 19,9 % 17,1 % 19,1 % Q highlights Finland 61 depots The sales of the Finnish equipment rental operations developed as planned. Sales increased by 6,8% in Q compared to a year earlier Weakened markets had an impact on performance in Q4 Outsourcing agreement with Rakennusliike A. Taskinen (part of Lemminkäinen Group) signed Development of hub network to improve maintenance and transport efficiency Training of salespeople and supervisory staff continued. Sales organisation was changed to be sector-specific Overall profitability for the year fell below targets Despite the measures to enhance profitability initiated in Q2, the weakening market situation took a toll on profitability Two sets of statutory negotiations were held in Q4 concerning staff reductions and layoffs According to RT* the Finnish construction is estimated to grow by 4% in 2008 and decrease by 3% in 2009, while Euroconstruct** estimated growth of only 1% in 2008 and a decline of nearly 10% in 2009 Sharp decrease in new housing starts, commercial construction also down Civil engineering expected to decline less, renovation growing steadily 61 (-5) *The Confederation of Finnish Construction Industries, October 2008 **Euroconstruct, December 2008 Note: Number of depots compared to end of

28 Equipment rental Sweden 10-12/ 10-12/ Change 1-12/ 1-12/ Change (EUR 1 000) % % Sales ,4 % ,1 % EBITA ,4 % ,1 % EBITA-% 20,3 % 21,0 % 21,8 % 22,4 % Q highlights Sweden 111 depots Sales of the Swedish rental operations declined by 5,4% in Q4 compared to the previous year The clear weakening of the Swedish krona affected sales growth in euros in Q4; growth in local currency continued, but at a lower rate Business and financial development in 2008 was in line with expectations Demand remained quite strong in Sweden but competition increased Changes in the operating environment became apparent at the end of Q4 Co-operation with the mining company LKAB expanded in the autumn with an order for rental services of at least EUR 15m over the next four years EBITA margin was slightly below previous year in Q4 Adjustment measures initiated at the end of the year will continue in 2009 According to the Swedish Construction Federation*, construction is estimated to grow by 2% in 2008 and to decline between 6-11% in 2009, while Euroconstruct** estimated a growth of 0,7% in 2008 and 0,2% in 2009 Sharp decline in residential construction in Civil engineering is expected to grow strongly in 2009, supported by publicsector funding 111 (+7) *Sveriges Byggindustrier, October 2008 **Euroconstruct, December 2008 Note: Number of depots compared to end of

29 Equipment rental Western Europe (Norway, Denmark, The Netherlands until ) 10-12/ 10-12/ Change 1-12/ 1-12/ Change (EUR 1 000) % % Sales ,9 % ,4 % EBITA ,6 % ,5 % EBITA-% -13,3 % 7,4 % 1,5 % 8,4 % Q highlights Western Europe 49 depots Sales growth continued in Western Europe Cramo succeeded in boosting its market share in both countries Service ranges and depot networks expanded in both countries Weakened market situation and weakened NOK impacted growth in Q4 Profit for the entire year was clearly below targets Strong expansion of operations early in the year Dramatically weakened market situation and tougher competition at the end of the year as well as non-recurring reorganisation expenses of EUR 0,6m and other costs allocated to the final quarter Measures to improve profitability initiated in 2008 will continue in 2009 Cramo s aim in 2009 is to improve profitability in Norway and Denmark by adjusting costs and increasing efficiency. At the same time, Cramo will develop its total service concept and synergies between the equipment rental and modular space businesses Euroconstruct* estimated that construction has declined by some 2,5% in both Norway and Denmark in In 2009, a further decline of almost 8% is expected in Norway and 4,6% in Denmark, driven mainly by significant declines in new housing construction 27 (+1) 22 (+5) *Euroconstruct, December 2008 Note: Number of depots compared to end of

30 Equipment rental Central and Eastern Europe* (Estonia, Latvia, Lithuania, Poland, Czech Republic, Russia, Slovakia as of April 1) 10-12/ 10-12/ Change 1-12/ 1-12/ Change (EUR 1 000) % % Sales ,9 % ,8 % EBITA ,4 % ,4 % EBITA-% 1,9 % 27,2 % 13,0 % 29,3 % Q highlights Central & Eastern Europe 82 depots Sales growth in CEE continued in Q Full-year growth was fuelled by good demand and expansion of business organically and through acquisitions, and development of customer relations Changes in exchange rates reduced sales growth measured in euros Sales growth excluding Estonia was 68% in 2008; Baltic countries grew by 3%, Russia by 171% and Poland, Czech and Slovakia combined by 85% Russian operations were expanded to Kaliningrad Profit for the entire year was below the target Slowdown in the Baltic countries and growth investments made in Russia Profit for the last quarter includes reorganisation expenses of EUR 0,9m Rental markets in the Baltics have slowed down due to a decline in construction. The outlook for new construction has also weakened in Russia. While the outlook remains good in Poland, Czech and Slovakia, economic uncertainty has become visible and competition is tougher Cramo is preparing for the weakening market situation by enhancing the structure of its depot network, making adjustments in costs and the number of personnel, and increasing efforts to optimise the rental fleet between markets The long-term outlook in rental business remains good in CEE 8 (+5) 19 (+1) 17 (+12) 14 (-1) 18 (+5) 4 (+3) 2 (+2) *Previously Other Europe Note: Number of depots compared to end of

31 Modular space (Finland, Sweden, Norway, Denmark) 10-12/ 10-12/ Change 1-12/ 1-12/ Change (EUR 1 000) % % Sales ,8 % ,0 % EBITA ,7 % ,2 % EBITA-% 29,5 % 23,7 % 29,9 % 25,2 % Q highlights Modular space order book Modular Space total sales declined by 7,8% in Q4 compared to % Lack of major sales transactions compared to Q and a decline in the Swedish and Norwegian krona impacted top line in euros Rental operations accounted for more than 75 % of the sales Profitability improved clearly from the previous year Both utilisation rates and the order book value remained high Competition for the supply of modular space is increasing, but clear market growth has kept price levels and profitability good As a result of reduced investments, production capacity will be downsized Cramo will focus more strongly on long-term rental of modular space. The aim for 2009 is to keep utilisation rates high in Finland and Sweden and to increase market share and the share of long-term rental agreements in Norway and Denmark. The opportunities to supply modular space are also considered to be good in the Baltic countries and Poland Construction project postponements due to economic slowdown expected to create demand for modular space. However, economic uncertainty reflected in longer decision-making times for rental space Integration of equipment rental and modular space functions in 2009 Order book (EUR m) /06 6/06 9/06 12/06 3/07 6/07 9/07 12/07 3/08 6/08 9/08 12/08 Rental Sales Share of rental 90 % 80 % 70 % 60 % 50 % 40 % 30 % 20 % 10 % 0 % Share of rental (% of total order book) 31

32 Actions to ensure competitiveness in a weakening market 32

33 Cramo Group strategy Business agility in a fast changing environment Fleet-related agility Fleet mobility; w./acc. OpCos Standardised fleet Fleet life cycle management Financial agility Operational leasing Rental sharing Capital utilisation in focus Managerial agility Timely decision-making Change management Agile governance model Business Agility Organisational agility Scale vs entrepreneurship Network-based organisation HR mobility Market-related agility Focus on customer needs Penetrating new markets Cramo Concept development Cost-related agility Fixed variable costs Outsourcing fixed costs Group functions slim 33

34 Preparing for tomorrow provides also a unique opportunity Prompt adaptation to changes is key in the rental industry and one of Cramo s strengths; pro-activity and agility will create tomorrow s winner All-time high investments in recent years make Cramo well prepared to meet present and near future demand Solid market positions achieved in all markets The aftermath of the financial crisis will likely give rise to new opportunities (acquisitions, outsourcing etc.) at attractive prices Positive long-term growth drivers of rental remain unchanged Rental is usually preferred alternative when money is scarce Cramo is well-positioned in emerging markets In CEE there is still permanent pent-up demand for construction 34

35 Contingency plan actions in Action impact Actions in 2008 Expected in 2009 Top line Operational costs Focus on growing CEE markets Focus on developing long-term customer relations and more active sales efforts Personnel reductions implemented, affecting some 270 employees Some depot closures in worstaffected countries Fast-response reductions in administrative and sales and marketing costs Focus on further strengthening mkt shares and on modular space Focus on developing long-term customer relationships and an active sales effort Cost savings at least EUR 25 million Staff reductions likely to continue Additional depot closures Renegotiation of purchase contracts Outsourcing of non-core services Organisational streamlining Capital costs and capital expenditure Increased fleet sales externally Operational leasing used as a flexible financing method Increased fleet sales externally Investment holiday implemented Possible returns of operational leasing financed fleet Diligent actions to adjust cost base in the changing market environment looking forward at the same time 35

36 Future prospects Summary outlook for 2009 The economic operating environment is expected to weaken in The Group expects the amount of construction to fall in all Nordic and Baltic countries. In other markets of presence, construction growth rates are expected to slow down from previous years levels. In spite of a general decline in construction, there are pockets of growth which Cramo intends to utilise in full Continued growth is anticipated in the demand for modular space Cramo believes that rental services remain a competitive alternative to buying equipment in an economic downturn As a result of investments made, the Group has a modern and competitive rental fleet and no investments are needed in Instead, Cramo will focus on optimising the use of its existing fleet Group-wide in 2009 The Group will continue its systematic cost adjustment measures to protect its profitability and its cash flow from operations in all situations. The cost reduction measures are expected to bring cost savings of at least EUR 25 million in 2009 The continued weakness of many European currencies relative to the Euro may further impact Euro-based figures In 2009, consolidated sales and EBITA margin will not reach the levels recorded in However, the Group s cash flow after investments is expected to stay positive 36

37 Appendix

38 Key figures 10-12/ 10-12/ Change 1-12/ 1-12/ Change EUR (1 000) % % INCOME STATEMENT FIGURES Sales ,3 % ,8 % Operating profit before amortisation on intangible assets resulting from acquisitions (EBITA) ,1 % ,5 % Operating profit (EBIT) ,0 % ,0 % Profit before tax (EBT) ,9 % ,0 % Profit for the period ,1 % ,4 % PER-SHARE FIGURES Earnings per share (EPS) before amort. on intangible assets resulting from acquisitions, diluted, EUR 0,35 0,50-30,0 % 1,84 1,96-6,1 % Earnings per share (EPS), undiluted, EUR 0,22 0,48-54,2 % 1,59 1,88-15,4 % Earnings per share (EPS), diluted, EUR 0,22 0,48-54,2 % 1,59 1,87-15,0 % Equity per share, EUR 10,42 10,88-4,2 % Dividend per share, EUR 0,40* 0,65-38,5 % BALANCE SHEET FIGURES Equity ratio, % 32,4 % 37,3 % Gearing, % 149,3 % 109,4 % Net interest-bearing liabilities ,7 % OTHER KEY FIGURES Return on equity, % 14,9 % 18,4 % Gross capital expenditure ,6 % % of sales 34,7 % 35,4 % Average personnel ,4 % *Proposed dividend 38

39 Consolidated income statement 10-12/ 10-12/ Change 1-12/ 1-12/ Change EUR (1 000) % % SALES ,3 % ,8 % Other operating income ,5 % ,1 % Change in inventories ,3 % ,7 % Production for own use ,7 % ,8 % Materials and services ,9 % ,2 % Employee benefits ,6 % ,6 % Amortisation on intangible assets resulting from acquisitions ,7 % ,3 % Depreciation ,5 % ,0 % Other operating expenses ,3 % ,1 % OPERATING PROFIT ,0 % ,0 % % of sales 10,2 % 17,5 % 15,8 % 18,5 % Finance costs (net) ,7 % ,4 % PROFIT BEFORE TAX ,9 % ,0 % % of sales 3,3 % 14,3 % 11,0 % 15,3 % Income taxes ,9 % ,0 % PROFIT FOR THE PERIOD ,1 % ,4 % % of sales 4,7 % 10,2 % 8,4 % 11,6 % 39

40 Consolidated balance sheet Change EUR (1 000) % ASSETS NON-CURRENT ASSETS Property, plant and equipment ,2 % Goodwill ,0 % Other intangible assets ,0 % Available-for-sale investments ,4 % Receivables ,9 % Deferred income tax assets ,8 % TOTAL NON-CURRENT ASSETS ,4 % CURRENT ASSETS Inventories ,8 % Trade and other receivables ,1 % Cash and cash equivalents ,1 % TOTAL CURRENT ASSETS ,5 % TOTAL ASSETS ,5 % Change EUR (1 000) % EQUITY AND LIABILITIES EQUITY Share capital ,0 % Share premium fund ,0 % Fair value reserve ,0 % Hedging fund ,2 % Translation differences ,3 % Retained earnings ,7 % TOTAL EQUITY ,3 % RESERVES Reserves ,8 % NON-CURRENT LIABILITIES Deferred income tax liabilities ,0 % Interest-bearing liabilities ,3 % Other non-current liabilities ,0 % CURRENT LIABILITIES Trade and other payables ,3 % Interest-bearing liabilities ,7 % TOTAL LIABILITIES ,9 % TOTAL EQUITY AND LIABILITIES ,5 % 40

41 Cash flow statement 1-12/ 1-12/ EUR (1 000) Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Proceeds from issue of share capital Dividends paid Increase (+) / decrease (-) in liabilities Increase (+) / decrease (-) in lease liabilities Cash flows from financing activities, total Net change in cash and cash equivalents Cash and cash equivalents at period-start Translation difference Cash and cash equivalents at period-end

42 Segment performance 10-12/ 10-12/ Change 1-12/ 1-12/ Change SALES, EUR (1 000) % % Equipment rental Finland ,8 % ,1 % Sweden ,4 % ,1 % Western Europe ,9 % ,4 % Central and Eastern Europe ,9 % ,8 % Equipment rental, total ,8 % ,6 % - between the segments ,5 % ,3 % Modular space ,8 % ,0 % - between the segments ,7 % ,2 % Eliminations ,5 % ,0 % Sales, total ,3 % ,8 % Netherlands' share of W.E / 10-12/ Change 1-12/ 1-12/ Change EBITA, EUR (1 000) % % Equipment rental - Finland ,3 % ,7 % - Sweden ,4 % ,1 % - Western Europe ,6 % ,5 % - Central and Eastern Europe ,4 % ,4 % Equipment rental, total ,0 % ,7 % Modular space ,7 % ,2 % Non-allocated capital gains and other income ,4 % Non-allocated Group activ ,5 % ,2 % Eliminatons ,4 % ,2 % EBITA, total ,1 % ,5 % Netherlands' share of W.E