Cramo Group
Q1 2017 presentation
28th of April, 2017
Leif Gustafsson, CEO
Aku Rumpunen, CFO
Q1 Highlights
2
Q1 2017 Highlights
• Sales growth 5.2% in local currencies
• Comparable EBITA EUR 19.7m (13.0)
• Strong EBITA improvement in
Equipment rental
• Comparable ROE 16.8% (12.0%)
• Cash flow after investments EUR
5.4m (-4.3)
3
FINANCIAL TARGET REALISATION
EQUIPMENT RENTAL Q1
MODULAR SPACE Q1
Organic sales growth, %
Organic rental sales growth, %
+7.0
+8.9
Comparable ROCE, %
Comparable ROCE, %
10.5 (12.9)
14.8 (9.2)
EQUIPMENT RENTAL
MODULAR SPACE
Double digit organic rental sales
growth
ROCE, % > 12.5
Organic sales growth > Markets *)
ROCE, % > 14.5
*) According to ERA (European Rental Association) in
the markets where Cramo is present.
4
Business
segments
5
Equipment Rental: Scandinavia
Strong demand continued in Sweden
(MEUR)
Sales
EBITA
% of sales
Comparable EBITA
% of sales
ROCE
Comparable ROCE
Q1/17
Q1/16 Change-% 2016
92.2
85.7
7.6 %
378.8
15.7
10.8
46.0 % 8.1%* 60.9
17.1 % 12.6 %
16.1 %
15.7
10.8
46.0 %
64.5
17.1 % 12.6 %
17.0 %
16.8 % 12.0 %
15.6 %
17.7 % 12.0 %
16.6 %
• In Sweden, the demand for equipment rental
continued strong supported by high construction
activity
• In Norway growth was concentrated in Oslo region
• In Denmark, the market environment in equipment
rental remained stable
* in local currencies
6
ER Scandinavia has
operations in three
countries with capital
employed over EUR 374m
in the end of Q1 2017.
Equipment Rental: Finland and Eastern Europe
Sales grew and profitability improved
(MEUR)
Sales
EBITA
% of sales
Comparable EBITA
% of sales
ROCE
Comparable ROCE
Q1/17
Q1/16 Change-%
30.7
28.1
9.0 %
2.2
-0.5
7.1 % -1.8 %
2.2
-0.5
7.1 % -1.8 %
12.3 %
8.2 %
13.4 %
8.2 %
2016
138.6
8.7%* 21.7
15.6 %
22.3
16.1 %
10.8 %
12.0 %
• In Finland, the demand for equipment rental
continued on a good level as well as in Estonia
• In Lithuania and Latvia market situation seems to be
improving, while in Poland market environment was
not quite as positive as expected
* in local currencies
7
ER Finland and Eastern
Europe has operations in
seven countries with capital
employed over EUR 180m
in the end of Q1 2017.
Equipment Rental: Central Europe
Sales grew and profitability improved
(MEUR)
Sales
EBITA
% of sales
Comparable EBITA
% of sales
ROCE
Comparable ROCE
Q1/17
Q1/16 Change-% 2016
14.5
13.8
5.2 %
77.9
5.2%*
-2.5
-3.4
3.8
-17.6 % -24.5 %
4.9 %
-2.5
-3.4
3.8
-17.6 % -24.5 %
4.9 %
5.1 % -2.4 %
4.0 %
5.1 % -1.5 %
4.0 %
• In Germany, market activity in all sectors of
construction stayed on a good level
• In Czech and Slovakia, good sales performance was
supported by the good demand especially in nonresidential construction
• Overall, the market conditions are expected to
remain positive in 2017
* in local currencies
8
ER Central Europe has
operations in five countries with
capital employed over EUR
90m in the end of Q1 2017.
Modular Space
Rental sales growth continued, profitability in pressure due to
periodically high direct costs
(MEUR)
Rental sales
Sales
EBITA
% of sales
Comparable EBITA
% of sales
ROCE
Comparable ROCE
•
•
•
Q1/17
Q1/16 Change-% 2016
20.0
18.4
8.9 %
76.4
9.6%*
25.7
28.0
-8.4 %
117.6
6.3
7.9
-21.2 % -7.8%* 30.8
24.4 % 28.4 %
26.2 %
6.3
7.9
-21.2 %
30.8
24.4 % 28.4 %
26.2 %
10.5 % 12.9 %
11.1 %
10.5 % 12.9 %
11.1 %
Rental sales were supported by the high number of
deliveries in 2016, however total sales were negatively
affected by lower amount of rental related sales compared
to previous year
In Finland, profitability was negatively affected by cost
overruns in some projects
Overall, good market demand is expected for modular
space in 2017
* in local currencies
9
Modular Space has
operations in eight
countries with capital
employed over EUR 297m
in the end of Q1 2017.
Group
performance
Q1 2017
10
Sales development
QUARTERS
ROLLING 12 MONTHS
740
200
193
187
14%
185
179
180
172
720
720
12%
155
140
10%
120
8%
100
6%
80
Sales growth (%, y-o-y)
147
712
6%
707
700
694
680
5%
4%
676
668
660
60
7%
659
660
3%
661
4%
2%
40
640
* Change in local currencies
11
Q1/17
Q4/16
Q3/16
Q2/16
Q1/16
Q4/15
Q3/15
0%
Q1/15
Q1/17
Q4/16
Q3/16
Q2/16
Q1/16
Q4/15
Q3/15
Q2/15
1%
620
0%
Q1/15
0
Q2/15
Q1/17 vs. Q1/16:
+4.8% (+5.2%*)
20
R12M Q1/17 vs.
R12M Q1/16:
+6.4%
2%
R12M sales growth (%, y-o-y)
R12M sales (EUR million)
163
161
160
Sales (EUR million)
8%
Comparable EBITA development
QUARTERS
40
ROLLING 12 MONTHS
140
25%
38.9
25%
23%
23%
21%
30
27.0
19%
26.6
25
17%
19.7
20
18.4
15%
13%
15
13.0
12.1 %
11%
118
120
111
21%
105
98
100
85
80
86
87
19%
90
16.4 % 17%
79
15%
13.3 %
60
13%
12.0 %
11%
40
10.1
10
9%
9%
12
Q1/17
Q4/16
Q3/16
Q2/16
Q1/16
5%
Q1/15
Q1/17
Q4/16
Q3/16
Q2/16
Q1/16
Q4/15
Q3/15
Q2/15
7%
0
5%
Q1/15
0
R12M Q1/17 vs.
R12M Q1/16:
+31.4%
7%
Q4/15
Q1/17 vs. Q1/16:
+52.2%
Q3/15
6.9 %
20
Q2/15
8.3 %
5
EBITA margin (%, line graph)
31.4
EBITA (EUR million, bar graph)
32.6
EBITA margin (%, line graph)
EBITA (EUR million, bar graph)
35
Comparable EBITA bridge y-o-y by segments
25
2.7
0.8
EBITA (EUR million)
20
0.0
-1.7
5.0
8.5
19.7
15
13.0
-0.1
13.0
-1.7
10
5
8.3% of
sales
12.1% of
sales
0
Q1 2016
Group
ER
ER Eastern ER Central
Scandinavia Europe
Europe
Business segments
MS
Nonallocated
Q1 2017
and elim.
Group
13
ER
MS
Business divisions
Nonallocated
Q1 2016
and elim.
Group
2.00
2.00
1.80
1.80
1.83
1.60
1.60
1.40
1.40
1.20
1.20
1.24
1.00
0.80
1.00
1.03
0.80
0.64
0.60
0.45
0.40
0.40
0.39
0.28
0.23
0.20
0.60
0.51
0.16
0.40
0.20
0.09
0.00
0.00
Q1/15
Q2/15
Q3/15
Q4/15
Q1/16
14
Q2/16
Q3/16
Q4/16
Q1/17
EPS R12M (EUR, line graph)
quarterly EPS (EUR, bar graph)
Comparable EPS performance
Operating cash flow and cash flow after
investments
73.5
70
Operating cash flow (EUR million, bar
graph)
58.2
53.0
50
51.2
50
44.9
42.3
39.3
30
30
23.6
+5.4
10
-10
10
3.5
-10
-27.8
-4.3
-30
-30
Q1/15
Q2/15
Q3/15
Q4/15
Q1/16
15
Q2/16
Q3/16
Q4/16
Q1/17
Cash flow after investments (EUR million,
line graph)
70
Comparable ROE and Net debt to EBITDA
18%
3.50
16.8 %
3.00
Net debt / EBITDA
14%
12.0 %
12%
9.6 %
10%
8%
2.50
2.37
2.00
1.96
1.50
1.68
1.00
0.50
Comparable ROE
Net debt / EBITDA
16
Q1/17
Q4/16
Q3/16
Q2/16
Q1/16
Q4/15
Q3/15
Q1/15
Target 2017-20
Q2/15
0.00
Q1/17
Q4/16
Q3/16
Q2/16
Q1/16
Q4/15
Q3/15
Q2/15
6%
Q1/15
Comparable ROE%
16%
Target < 3.00 2017-20
Conclusion &
Outlook 2017
17
Conclusions & outlook 2017
Q1 / 2017
•
•
•
Strong performance continued, especially
in equipment rental
Unsatisfactory profitability in modular
space business division
The implementation of the new strategy
‘Shape and Share’ has started in all
countries
Shape
and
Share
Outlook
•
•
•
In Cramo countries, the construction
market outlook for 2017 is mainly positive
European Rental Association (ERA)
expects growth in rental services in all of
Cramo’s markets in 2017
Demand both for equipment rental and
modular space is expected to stay a good
level
18