Martin Holmgren Vice President Fleet Management Cramo Group

Transcription

1 Martin Holmgren Vice President Fleet Management Cramo Group

2 Utskifting hvor langt kan man strekke seg? - når k-punktet er passert bakkerekord eller knall og fall?

3 Utskifting hvor langt kan man strekke seg? - når k-punktet er passert bakkerekord eller knall og fall?

4 Utskifting hvor langt kan man strekke seg? - når k-punktet er passert bakkerekord eller knall og fall?

5 Cramo Group in brief What Cramo is a rental solutions provider in machinery, equipment and modular space Finland For whom Construction industry Other industry Public sector Household, other Norway Sweden St. Petersburg Russia Key financials 2009 Sales 446,7 MEUR (-23 % ). EBITA 17,3 MEUR (EBITA margin 3,9 %) Listed on the Helsinki Stock Exchange since 1988, on the main list since 1998 Denmark Estonia Latvia Lithuania Belarus Jekatrinenburg Moscow Depot network 286 depots (Q4/2009) 11 countries Germany Czech Republic Poland Slovakia Ukraine Personnel ( ) Austria Hungary Moldova No. of rental equipment Approximately 170,000 (2009)

6 Product areas Tools ( units) Access equipment ( units) Construction equipment (3 300 units) Modular space ( units)

7 Total rental solutions provider from start to finish Computers and communications Project-office Evacuation units Scaffol ding Fallprotection Kitchen Site hut establishments Labour huts Temporary electricity Alarm/ Security Contain ers Hoist Staircase Cleaning Toilets Fence Waste handling

8 Utskifting hvor langt kan man strekke seg? - når k-punktet er passert bakkerekord eller knall og fall? Where to allocate cost in the P&L sheet High Modern fleet Lower direct cost ratio High customer attractiveness Low time utilization Small depot network Probably efficient service and repair structure Modern fleet Lower direct cost ratio High customer attractiveness Large depot network Low time utilization Probably inefficient service and repair structure Unprofitable business? Capital cost ratio (Capital cost in relation to revenue) Low Modern fleet High customer attractiveness Focus on high time utilization Medium direct cost ratio Total cost of ownership Efficient fleet organization Used equipment sale a strategic function Large depot network Volume driven model Maintenance is a key driver Older average fleet age Higher direct cost ratio Questionable customer Attractiveness Scrap of old equipment rather then sale Requires major resources in service and maintenance Can be profitable based on low capital cost ratio but not on indirect cost ratio (efficiency) Low Indirect cost ratio (Fleet related indirect costs in relation to revenue) High

9 Utskifting hvor langt kan man strekke seg? - når k-punktet er passert bakkerekord eller knall og fall? K-punkt = konstruktionspunkt. Det är den punkt där backen börjar plana ut. Inte att förväxla med HS = hillsize som är den benämning som backarna numera har. Det är alltså det mått som man "säkert" kan hoppa. Har backen en HS på 134 meter så är backen konstruerad för hopp på 134 meter utan risk för fall och skador. Går man över HS så ökar den risken och hopp över HS gör att juryn måste ha ett kort möte och bestämma om man ska ändra ansatsen eller inte. Product life cycle

10 Product life cycle

11 Resource allocation A) Fleet Optimization B) Purchasing of equipment A) Full service agreements B) In-house repair a strategic resource A) Total cost of ownership B) Purchase price A) Partnership B) Transaction based relation Rental operation A) Modern fleet - value based pricing B) Old fleet market based pricing A) Maintenance to drive time utilization B) Repair to extend fleet life time A) Develop customer effectiveness B) Delivering equipment A) Repair and Maintenance to increase time utilization B) Repair and maintenance to avoid new investments A) Roles and regulations developing new solutions and effectiveness B) Roles and regulations work and costs A) Focus on time utilization and efficiency B) Focus on availability through stock keeping A) Product and concept development B) Old products is more robust and better Divestments A) Used equipment sale to minimize total cost of ownership B) Used equipment sale to get rid of old equipment A) Well maintained equipment to maximize second hand value B) Maintenance not important to sell used equipment A) Second hand value important to the total cost of ownership B) Second hand value almost zero A) Used equipment sales specialization B) No focused used equipment function Product life cycle

12 Fleet Optimization (best in class time utilization) requires; Defined divestment point and maximum fleet lifetime, or in Norwegian terms Define the K-point and the hill size Cornerstones to land between the K-point and the hillsize Central responsibility to remove equipment Time utilization and/or age and not emotional reasons to sell used equipment Financial strength to reinvest Depreciation time shall reflect the K-point Technological innovations can rapidly change the K-point Listen to the customers Do not underestimate indirect costs Product life cyckle

13 Key is to find the optimum point where: Used equipment value is right Direct cost has not yet started to increase Equipment attractiveness is still sufficient K-Point HS Product area K-point (years) Hill size (Years) Tools 4 6 Access equipment 8 12 Construction equipment 7 10 Modular space 15 20

14 Yearly rental equipment investments M old Cramo figures New Cramo group 2006: 140 MEUR 2007: 200 MEUR 2008: 230 MEUR 2009: 35 MEUR

15 Thank You!