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CRAMO PLC
INTERIM
REPORT1.1.2008 – 30.9.2008
POWERING YOUR BUSINESS
2
CEO Vesa Koivula
CFO Martti Ala-Härkönen
3
Contents
� Cramo Group in brief and
market outlook
� Interim report Q3/2008
� Agility in action
� Appendix
� Additional financial information
4
Cramo Group in briefQ3 2008 results meeting expectations
� Equipment rental� Modular space
� Sales 436,5 MEUR (+23,8 %)� EBITA 82,3 MEUR (+17,9 %)
� EPS, undiluted EUR 1,37 (-2,1 %)
� EPS, diluted EUR 1,37 (-0,7 %)
Business segments
Key financials 1-9 / 2008
Depot network
Personnel
No. of rental equipment
� Approximately 225.000
Russia
Denmark
GermanyPoland
CzechRepublic
AustriaHungary
Slovakia
Ukraine
Belarus
Lithuania
Latvia
Estonia
Norway
Sweden
Finland
Romania
Moldova
St. Petersburg
� 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
History
Bulgaria
Slovenia
Croatia
Bosnia and
HerzegovinaSerbia
Macedonia
Albania
Moscow
� 298 depots (9/2008)
� 11 countries
� 2.564 (average 1-9/2008)
Yekaterinburg
5
Global financial turmoil
• The instability of the North American and European financial markets has escalated into a global financial crisis. The situation has worsened particularly in the latter part of Q3 2008
• Increasing signs of escalation from financial crisis into general economic downturn
• Near and mid-term future increasingly uncertain
• Financial crisis affects cost and availability of funds for construction and investments
6
3,8 %
1,3 %
0,6 %
1,2 %
1,5 %
6,6 %
4,3 %
6,5 %
3,9 %
1,4 %
0,8 %
1,2 %
1,5 %
6,7 %
4,5 %
7,2 %
3,0 %
0,5 %
0,1 %
0,2 %
0,5 %
6,1 %
3,4 %
5,7 %
2,2 %
-0,3 %
-0,7 %
-0,5 %
-0,2 %
5,1 %
2,5 %
3,2 %
-3,0 % -1,0 % 1,0 % 3,0 % 5,0 % 7,0 % 9,0 %
Total world
Total advanced
economies
US
Euro area
Japan
Total emerging and
developing econ.
CEE
CIS
2009E (Apr-2008) 2009E (Jul-2008)
2009E (Oct-2008) 2009E (Nov-2008)
4,9 %
2,7 %
2,8 %
2,3 %
1,9 %
7,1 %
5,3 %
6,4 %
3,7 %
1,3 %
0,5 %
1,4 %
1,4 %
6,7 %
4,4 %
7,0 %
4,1 %
1,7 %
1,3 %
1,7 %
1,5 %
6,9 %
4,6 %
7,8 %
3,9 %
1,5 %
1,6 %
1,3 %
0,7 %
6,9 %
4,5 %
7,2 %
3,7 %
1,4 %
1,4 %
1,2 %
0,5 %
6,6 %
4,2 %
6,9 %
0,0 % 1,0 % 2,0 % 3,0 % 4,0 % 5,0 % 6,0 % 7,0 % 8,0 % 9,0 %
Total world
Total advanced
economies
US
Euro area
Japan
Total emerging and
developing econ.
CEE
CIS
2008E (Apr-2007) 2008E (Apr-2008) 2008E (Jul-2008)
2008E (Oct-2008) 2008E (Nov-2008)
Declining economic growthSlowdown throughout the world
Real GDP growth 2008E Real GDP growth 2009E
Source: IMF, World Economic Outlook (April 2007, April 2008, July 2008, October 2008 and November 2008)
7
Impact of turmoil on Cramo Group
• Cramo Group’s business performance continued in line with expectations
during Q3. Economic uncertainty overall has increased since mid-
September
– Continued difficult market situations in the Baltics and Denmark
– Positive performance has continued to date in Finland, Sweden,
Norway, and CEE (except the Baltics)
– Modular space business is performing particularly well, clearly
bringing stability to the Group’s operations
• New residential construction sector has remained particularly weak in
most markets. Also within new non-residential construction, investments
are being cut and projects have been postponed
• Competitive pressures have increased as growth rates start to level off
• Cost of funding has increased and capital markets are not functioning
properly
8
Determined actions to ensure competitivenessPrompt actions already taken which have secured Q3 2008 results
• Fast response profitability and efficiency improvement measures started already in H1 2008 in select markets and expanded to other markets in Q3
• Continuous focus on building long-term customer relationships throughout the Group, including outsourcing deals
– Strengthened market position resulting in increased competitiveness
• Determined cost reduction actions already taken
– Cost adjustments in markets with slower growth contributed to the Group’s performance
– The Group, in the normal course of its business, is constantly monitoring and adjusting its cost base, including its personnel costs
• Other cost reduction activities on-going based on contingency plans
• Significant reductions in investments already in Q3
• Fleet transfer and optimization activities accelerated
• Additional finance commitments secured in October-November
9
• Winning market share in existing markets
• New markets, product areas, services & customer segments
• Acquisition and outsourcing opportunities
• Rental penetration
• Outsourcing
• Technological innovations
• Rental-related services
• Consolidation
Growth drivers in rental businessLong-term growth potential despite short-term turbulence
• Growing construction market
• Solid industrial investments, increasing public sector spending,facilitated also by EU funding
Underlying market growth
Excess rental market growth
• Focus on core business
• Improved efficiency and ROI
• Improved quality, safety and regulatory compliance
Growth in excess of the rental market
+
Underlying / customer market growth
Customer needs
Financial –Improve ROI
Right equipment –At the right time
Service –High availability
Norms & safety –Risk reduction
Rental growth driversReasons to rent
Note: Partially based on material by the European Rental Association, June 2007
Additional growth drivers / opportunities
+
10
Q3 / 2008
11
83,6
96,7105,5
116,6
107,3116,4
129,0
143,8
126,8
154,0 155,7
0
20
40
60
80
100
120
140
160
180
Q1 Q2 Q3 Q4
Quarterly sales (EUR m
illion)
2006 actual 2007 actual 2008 actual
Cramo quarterly sales development Strong growth continued in Q3/2008
Y-o-Y growth08 vs. 07
Y-o-Y growth07 vs. 06
+20,3%(+24,6%)*
Note: Organic growth 1-9/2008 amounted to 19,6%
* Growth from continuing operations, excluding the Netherlands, which was divested by the end of Q107.
+28,4%(+29,2%)*
+22,2%(+25,7%)*
+23,3%(+27,2%)*
+18,2%(+21,5%)*
+32,3%(+32,3%)*
+20,7%(+20,7%)*
12
9,8
15,1
25,022,9
16,7
22,4
30,7
26,1
17,4
30,7
34,2
0
5
10
15
20
25
30
35
40
Q1 Q2 Q3 Q4
Quarterly EBITA (EUR m
illion)
2006 actual 2007 actual 2008 actual
Cramo quarterly EBITA development Clear EBITA growth in Q3 2008 – Profitability increased in Sweden, Finland and
Modular Space, while weakened in Western Europe and Central and Eastern Europe
EBITA-% 11,8% 15,6% 19,7%15,5% 19,3% 18,2%13,7% 19,9% 23,7% 23,8% 22,0%
13
0,08
0,21
0,34
0,170,14
0,31
0,43
0,49
0,28
0,48
0,62
0,48
0,26
0,52
0,59
0,00
0,10
0,20
0,30
0,40
0,50
0,60
0,70
Q1 Q2 Q3 Q4
Quarterly diluted EPS (EUR)
2005 2006 2007 2008
Quarterly EPS performance (diluted)EPS in Q3/2008 decreased slightly compared to 2007
Note: 2005 EPS is for Rakentajain Konevuokraamo
Y-o-Y growth08 vs. 07
-7,1% +8,3% -4,8%
14
0,0
0,5
1,0
1,5
2,0
2,5
3,0
3,5
4,0
Q1/06
Q2/06
Q3/06
Q4/06
Q1/07
Q2/07
Q3/07
Q4/07
Q1/08
Q2/08
Q3/08
Quarterly gross CapEx to
depreciation or EBITDA
Gross CapEx / EBITDA
Gross CapEx / Depreciation
Gross CapEx 2006-08 Gross CapEx / EBITDA & Depr. 2006-08
Capital ExpenditureGrowth investments brought to an end during Q3
Note: Gross CapEx does not include operational leasing or acquisitions.
27,628,8 27,8 27,7
40,8
52,2
31,7
50,8
58,4
75,7
35,2
0
10
20
30
40
50
60
70
80
Q1 Q2 Q3 Q4
Quarterly gross capital expenditure (EUR m
illion)
2006 2007 2008
15
-13,2
-20,6
-68,1
-38,9
-1,9-2,0-0,8
-80
-70
-60
-50
-40
-30
-20
-10
0
Q1 Q2 Q3 Q4
Quarterly cash flow after investm
ents (EUR m
illion)
Cash flow after investments 2007
Cash flow after investments 2008
Cash flow from operations 2007-08 Cash flow after investments 2007-08
Cash flow Solid operative cash flow, near break-even after investments in Q3
Note: CFO = Cash flow from operating activities
Acquisitions
EUR 28,5m
Acquisitions
EUR 8,6m27,4
15,0
35,8
60,4
16,4
27,7
34,3
0
10
20
30
40
50
60
70
Q1 Q2 Q3 Q4
Quarterly cash flow from operations (EUR m
)
0 %
5 %
10 %
15 %
20 %
25 %
30 %
35 %
40 %
45 %
Quarte
rly cash flo
w fro
m operatio
ns to
sales
CFO 2007 CFO 2008
CFO / Sales 2007 CFO / Sales 2008
16
37,1 %
35,2 %
37,0 %
38,2 %
39,1 %
36,9 %
38,2 %
37,3 %
35,9 %
32,0 %
32,4 %
0 %
5 %
10 %
15 %
20 %
25 %
30 %
35 %
40 %
45 %
Q1 Q2 Q3 Q4
Equity ratio %
2006 2007 2008
116,9 %
124,0 %
115,8 %
104,6 %
106,9 % 118,4 %
109,1 %
109,4 %
126,5 %
147,1 %
151,3 %
0 %
20 %
40 %
60 %
80 %
100 %
120 %
140 %
160 %
Q1 Q2 Q3 Q4
Gearing %
2006 2007 2008
Gearing 2006-08 Equity ratio 2006-08
Capital structureBalance sheet again improving after growth investments, further
improvement expected in 2009
17
288,3
175,0
59,8
60,0
20,0
35,0
5,9
3,8
13,0
532,9
73,0
128,0
0
100
200
300
400
500
600
Interest bearing
liabilities
(30.9.2008)
Open commitments
(30.9.2008)
Additional
commitments
opened by
11.11.2008
Interest bearing liabilities (EUR m
)
Bank & Pension loans Repurchase liabilities
Rent advances Finance lease liabilities
Commercial papers Open commitments non-current
Open commitments current
Debt structure Debt maturity 30.9.2008
Debt structure and maturityIncreasing available facilities, good maturity structure
Facilities have been
increased to cover
maturing commercial
papers
6,6
44,6 43,0 37,0 34,0
192,9
115,0
42,4
19,0
164,0
63,6
43,037,0 34,0
192,9
0
50
100
150
200
250
Q4 2008 2009 2010 2011 2012 2012+Interest bearing liabilities (EUR m
)
Commercial papers
Current loans from non-current (2012+) credit limits
Other interest-bearing liabilities
18
Risk management at Cramo GroupIncreased focus on risk management in a new market environment
• Enterprise risk management framework
at Group level
– Operating companies’ risk assessed in
business plans
• Active identification, assessment and
monitoring of risks
– Business risks
– Financial risks
– Environmental risks
– Insurance coverage
• Continuous and systematic activities
aimed at preventing risks from
materializing to secure Cramo Group’s
long-term competitiveness
Risk management principles Business risk management
• Proactive monitoring
– Forward-looking indicators and early-
warning signals
• Monthly follow-up by country
• Operational hedges
– Control of asset intensity
• Fleet financing strategy � including
operational leasing and rental sharing
• Fleet management strategy �
standardized fleet, fleet as a Group
resource, fleet transfers and optimization
– Control of business exposure –
Modular space (long-term rental)
– Control of customer exposure –
Expansion of customer base
– Control of geographic exposure –
Expansion in the growing CEE area,
# 1 or 2 in each market
• Contingency planning
19
16,7 %
18,5 %
19,5 %
18,4 %
17,7 %
18,0 %
16,9 %
0 %
5 %
10 %
15 %
20 %
25 %
Q1/07
Q2/07
Q3/07
Q4/07
Q1/08
Q2/08
Q3/08
Rolling 12-m
onth ROE-%
18,7 %
19,5 %
19,8 %
19,3 %
18,7 %
19,0 %
18,7 %
0 %
5 %
10 %
15 %
20 %
25 %
Q1/07
Q2/07
Q3/07
Q4/07
Q1/08
Q2/08
Q3/08
Rolling 12-m
onth EBITA-%
21,5 % 23,0 %
24,1 %
23,4 %
21,1 %
24,2 %
23,7 %
0 %
5 %
10 %
15 %
20 %
25 %
30 %Q1/07
Q2/07
Q3/07
Q4/07
Q1/08
Q2/08
Q3/08
Rolling 12-m
onth sales growth (y-o-y) %
Sales growth, rolling
Cramo Group financial targetsSales growth (8th quarter in a row) and EBITA margin (3rd year in a row)
above targets
EBITA margin, rolling ROE, rolling
New Target: 10% => 18% New Target: 15% => 18% New Target: 18% => 22%
18 %
18 % 18 %
22 %
20
Sales by segment
Equipment rental
86,6 %
EUR 436,5 million
Equipment rental
84,8 %
EUR 352,7 million
Sales 1-9/2008 Sales 1-9/2007
Western Europe
17,4 %
Modular space
13,4 %
Finland
15,1 %
Sweden
41,1 %
Central and Eastern
Europe
13,1 %
Western Europe
15,2 %
Central and Eastern
Europe
11,2 %
Sweden
43,1 %
Finland
15,3 %
Modular space
15,2 %
21
EBITA by segment
Equipment rental
78,9 %
EUR 82,3 million
Equipment rental
81,7 %
EUR 69,8 million
EBITA 1-9/2008 EBITA 1-9/2007
Western Europe
5,6 %
Modular space
21,1 %Finland
13,9 %
Sweden
47,9 %
Central and Eastern
Europe
11,5 %
Western Europe
6,2 %
Central and Eastern
Europe
15,8 %
Sweden
46,1 %
Finland
13,5 %
Modular space
18,3 %
22
Equipment rental – Finland
� The sales of the Finnish equipment rental operations developed as planned.
Sales increased by 14,8% in Q3 2008 compared to a year earlier
� Strong growth in demand slowed down in Q3 2008, impacting sales
� Problems in availability of financing due to financial crisis have led to
postponement of several construction projects
� Demand for equipment rental services continues to grow faster than actual
equipment rental
� Measures initiated in Q2 2008 to enhance profitability have improved
profitability to expected level. However, profitability in 2008 is expected to fall
slightly short of last year’s level
� Statutory cooperation discussions with personnel in Cramo Finland on-going,
to discuss permanent and temporary layoffs
� According to RT* the Finnish construction is estimated to grow by 4% in 2008
and decrease by 3% in 2009
� Sharp decrease in new housing starts (residential cons. decline 4% in 2009)
� Number of new commercial construction projects decrease
� Civil engineering expected to remain at 2008 level in 2009
� Renovation is still projected to increase steadily (+3,5% in 2009)
Q3 2008 highlights Finland – 62 depots
*The Confederation of Finnish Construction Industries, October 2008
Note: Number of depots compared to end of 2007
62 (-4)
7-9/ 7-9/ Change 1-9/ 1-9/ Change 1-12/
(EUR 1 000) 2008 2007 % 2008 2007 % 2007
Sales 24 947 21 733 14,8 % 66 415 54 864 21,1 % 75 761
EBITA 6 983 5 478 27,5 % 11 692 10 336 13,1 % 14 493
EBITA-% 28,0 % 25,2 % 17,6 % 18,8 % 19,1 %
23
Equipment rental – Sweden
� Sales of the Swedish rental operations continued as expected in Q3; sales
growth slowed down to 11,1%
� Demand for rental services continued to grow, and economic uncertainty
did not yet affect Cramo’s business in Q3
� Uncertainty has increased and several construction projects have been
postponed after the reporting period
� The weakening Swedish krona affecting sales growth in euros
� EBITA increased to EUR 16,2 (14,2) million and EBITA-% increased to 26,5%
(25,8%) in the third quarter
� The weakening of the Swedish krona will reduce sales growth in Q4 as
measured in euros
� According to the Swedish Construction Federation*, construction is estimated
to grow by 4% in 2008 and 1% in 2009
� Residential construction is expected to decline by 4% in 2009; new
residential construction is expected to go down by 11%, while housing
renovation is expected to grow by 6%.
� Public sector investments are expected to maintain growth in commercial
construction at 1%, while civil engineering is expected to grow by 10% in
2009.
Sweden – 107 depots
107 (+3)
*Sveriges Byggindustrier, October 2008
Note: Number of depots compared to end of 2007
Q3 2008 highlights
7-9/ 7-9/ Change 1-9/ 1-9/ Change 1-12/
(EUR 1 000) 2008 2007 % 2008 2007 % 2007
Sales 61 242 55 138 11,1 % 181 298 154 338 17,5 % 214 515
EBITA 16 214 14 248 13,8 % 40 288 35 343 14,0 % 47 952
EBITA-% 26,5 % 25,8 % 22,2 % 22,9 % 22,4 %
24
Equipment rental – Western Europe(Norway, Denmark, The Netherlands until 31.3.2007)
� Strong sales growth continued in Norway and Denmark
� Cramo succeeded in boosting its market share in both countries
� Growth expected to continue in Q4
� Measures taken in Q1 2008 to improve profitability have clearly contributed to
the result in Norway. In Denmark, the market situation is more challenging
and profitability is likely to improve at a slower rate
� In Denmark, the slowdown in construction and fragmented competition
complicate the market situation. As a result, Cramo has already reduced
personnel in Denmark and further reductions will be considered as required
� EBITA in Western Europe was at previous year’s level in Q3
� Cramo has concluded several outsourcing agreements in Denmark and
Norway within the last 12 months that are important with regard to the
development of long-term customer relationships.
� According to forecast* published in October, new residential and commercial
construction are expected to decline in 2009 in Norway. Renovation and civil
engineering are expected to grow in 2009
� In Denmark**, residential construction is expected to decrease markedly but
civil engineering will grow
Western Europe – 49 depots
27 (+1)
22 (+5)
*Norwegian Prognosesenteret AS, October 2008
**Danmark Statistik, September 2008; Euroconstruct, June 2008
Note: Number of depots compared to end of 2007
Q3 2008 highlights
7-9/ 7-9/ Change 1-9/ 1-9/ Change 1-12/
(EUR 1 000) 2008 2007 % 2008 2007 % 2007
Sales 26 999 19 053 41,7 % 76 732 54 345 41,2 % 77 462
EBITA 2 064 2 028 1,8 % 4 749 4 777 -0,6 % 6 487
EBITA-% 7,6 % 10,6 % 6,2 % 8,8 % 8,4 %
25
Equipment rental – Central and Eastern Europe*(Estonia, Latvia, Lithuania, Poland, Czech Republic, Russia, Slovakia as of April 1)
� Strong sales growth in CEE continued at 44,4% in Q3 2008
� Good demand, together with organic and acquisitive growth actions
contributed to sales growth. For the full year, 50% growth target is unlikely
to be reached. Weakening currencies in the CEE have an impact on growth
� In Q1-Q3/2008, CEE sales excl. Estonia increased by 85 %; Central Europe
(Poland, Czech, Slovakia) grew by 98% and Russia by 225 %
� Profitability suffered from the levelling-off demand in the Baltics, tightening
competition and increasing cost levels
� Cost base has been adjusted in all the Baltic countries
� While strong expansion and more difficult market will affect the overall
profitability for 2008, good level of profitability still expected
� Rental markets in the Baltics have slowed down due to a decline in
construction. The outlook for housing construction has turned to a more
conservative direction also in Russia. While the outlook remains good in
Poland, the Czech and Slovakia, economic uncertainty has become visible
� 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
Central & Eastern Europe – 80 depots
19 (+1)
17 (+12)
14 (-1)
18 (+5)
5 (+2)
5 (+4)
*Previously Other Europe
Note: Number of depots compared to end of 2007
Q3 2008 highlights
2 (+2)
7-9/ 7-9/ Change 1-9/ 1-9/ Change 1-12/
(EUR 1 000) 2008 2007 % 2008 2007 % 2007
Sales 23 476 16 263 44,4 % 57 578 40 081 43,7 % 58 202
EBITA 5 159 5 887 -12,4 % 9 638 12 146 -20,6 % 17 082
EBITA-% 22,0 % 36,2 % 16,7 % 30,3 % 29,3 %
26
Modular space(Finland, Sweden, Norway, Denmark)
� Modular Space total sales were up by 10,8% in Q3 compared to 2007
� Rental operations accounted for more than 70 % of the sales
� EBITA was EUR 6,1 (4,9) million in Q3 2008, EBITA-% increased to 30,0 %
� Both utilisation rates and the order book value remained high. Order book
continued to strengthen further, particularly in Finland
� Cramo signed several new long-term rental agreements, the most significant
of which concerns day-care centres delivered to the city of Espoo
� The economic uncertainty is reflected in longer decision-making times for
new rental contracts
� 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
� Statutory cooperation discussions initiated in modular space production
� Cramo aims to further increase the share of long-term rental agreements in
proportion to sales operations, bringing stability to the Group’s operations
� Postponed construction projects expected to show as positive demand for
modular space rental
Modular space order bookQ3 2008 highlights
7-9/ 7-9/ Change 1-9/ 1-9/ Change 1-12/
(EUR 1 000) 2008 2007 % 2008 2007 % 2007
Sales 20 367 18 376 10,8 % 59 143 54 350 8,8 % 76 733
EBITA 6 110 4 851 26,0 % 17 767 14 047 26,5 % 19 358
EBITA-% 30,0 % 26,4 % 30,0 % 25,8 % 25,2 %
65,7 69,9
70,2 74,5
87,2
84,1
83,4 89,3
91,4
92,7
105,3
7,0
7,5 8,3
7,5
9,6
5,5
5,3
7,8 8,3
6,6
10,4
90,4 %
90,4 %
89,5 %
90,9 %
89,4 %
89,8 % 93,8 %
94,4 %
92,1 %
91,8 %
94,1 %
0
20
40
60
80
100
120
3/06
6/06
9/06
12/06
3/07
6/07
9/07
12/07
3/08
6/08
9/08
Order book (EUR m
)
0 %
10 %
20 %
30 %
40 %
50 %
60 %
70 %
80 %
90 %
100 %
Share of re
ntal (%
of to
tal o
rder b
ook)
Rental Sales Share of rental
27
Agility in action
28
Cramo Group strategy 2008-11Business 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
Organisational agility• Scale vs entrepreneurship
• Network-based organisation
• HR mobility
Managerial agility• Timely decision-making
• Change management
• Agile governance model
Cost-related agility• Fixed ���� variable costs
• Outsourcing fixed costs
• Group functions slim
Market-related agility• Focus on customer needs
• Penetrating new markets
• Cramo Concept development
Business
Agility
29
Contingency plan actions going forwardAgility in action
• Due to the modern fleet, no need for new investments; limited need for maintenance capital expenditure
• Focus on the optimization of current fleet
– Internal transfer of equipment: improved processes, systems and organization
– External sale of used equipment: increased group-level coordination and support
– Improved internal fleet management processes: increased focus on utilizations, increased centralization (hub structure, repair & maintenance operations)
• Fixed cost adjustments to continue in order to focus on profitability
– Denmark, the Baltics, Modular space production
– Contingency plans and actions in place for addressing possible performance shortfalls in any Cramo market
• Improvements in financial flexibility
– Focus on cash flow and reduction of indebtedness
– New committed facilities negotiated to address further financing needs
• Tightened risk management activities
– Increased activity on collections and control of trade receivables
• However … not forgetting about investing in the right people and on furtherbuilding ”One Cramo”
30
Preparing for tomorrow gives Cramo 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
31
Future prospectsSummary outlook for the immediate future
� Economic uncertainty overall has increased since mid-September. The Group sees a negative development in construction volumes particularly in the Nordic region and the Baltic countries in 2009
� Cramo anticipates, however, that the impact on the demand for rental services will not be as severe as it is feared to be in construction in general
� Continued growth is also anticipated in the demand for modular space
� Cramo Group has embarked on an “investment holiday”for the balance of 2008 and total 2009 and, instead of investing in new equipment, will focus on optimising the use of existing fleet throughout the whole Group
� The Group reconfirms its sales growth guidance at above 18% and an EBITA above 18% of sales in 2008, in line with the Group’s financial targets. However, the risk level has increased
� In 2009, in a volatile environment, the Group expects to achieve a positive cash flow after investments and a lower gearing
32
Cramo – Rental company of the year in 2008
Cramo was selected Rental
company of the year 2008 in
European Rental Association’s first
ever Rental Awards ceremony held
in Amsterdam on June 4, 2008
Appendix
34
Key figuresChange Change
EUR (1 000) % %
INCOME STATEMENT FIGURES
Sales 155 697 128 962 20,7 % 436 486 352 655 23,8 % 496 428
Operating profit before amortisation on intangible
assets resulting from acquisitions (EBITA) 34 215 30 736 11,3 % 82 310 69 819 17,9 % 95 963
Operating profit (EBIT) 32 255 29 739 8,5 % 77 225 66 713 15,8 % 91 844
Profit before tax (EBT) 24 517 25 451 -3,7 % 58 926 55 276 6,6 % 75 808
Profit for the period 18 019 19 221 -6,3 % 41 917 42 806 -2,1 % 57 485
PER-SHARE FIGURES
Earnings per share (EPS) before amort. on intangible
assets resulting from acquisitions, diluted, EUR 0,65 0,65 0,0 % 1,53 1,48 3,4 % 2,00
Earnings per share (EPS), undiluted, EUR 0,59 0,63 -6,3 % 1,37 1,40 -2,1 % 1,88
Earnings per share (EPS), diluted, EUR 0,59 0,62 -4,8 % 1,37 1,38 -0,7 % 1,87
Equity per share, EUR 11,39 10,52 8,3 % 10,88
BALANCE SHEET FIGURES
Equity ratio, % 32,4 % 38,2 % 37,3 %
Gearing, % 147,1 % 109,1 % 109,4 %
Net interest-bearing liabilities 513 694 351 788 46,0 % 364 985
OTHER KEY FIGURES
Return on equity, rolling 12-month ROE, % 16,9 % 19,5 % 18,4 %
Gross capital expenditure 169 270 124 711 35,7 % 175 494
% of sales 38,8 % 35,4 % 35,4 %
Average personnel 2 564 2 134 20,1 % 2 070
7-9/
2008
7-9/
2007
1-9/
2008
1-9/
2007
1-12/
2007
35
Consolidated income statement
Change Change
EUR (1 000) % %
SALES 155 697 128 962 20,7 % 436 486 352 655 23,8 % 496 428
Other operating income 1 097 885 24,0 % 9 994 7 431 34,5 % 7 798
Change in inventories -536 1 332 -140,2 % 446 2 969 -85,0 % 966
Production for own use 2 866 4 016 -28,6 % 12 833 10 457 22,7 % 15 379
Materials and services -22 793 -28 551 -20,2 % -85 116 -74 873 13,7 % -106 396
Employee benefits -28 769 -25 732 11,8 % -88 951 -74 434 19,5 % -101 608
Amortisation on intangible assets
resulting from acquisitions -1 961 -997 96,6 % -5 085 -3 106 63,7 % -4 119
Depreciation -22 353 -16 055 39,2 % -62 567 -45 119 38,7 % -62 356
Other operating expenses -50 995 -34 121 49,5 % -140 816 -109 267 28,9 % -154 248
OPERATING PROFIT 32 255 29 739 8,5 % 77 225 66 713 15,8 % 91 844
% of sales 20,7 % 23,1 % 17,7 % 18,9 % 18,5 %
Finance costs (net) -7 739 -4 288 80,5 % -18 300 -11 437 60,0 % -16 036
PROFIT BEFORE TAX 24 517 25 451 -3,7 % 58 926 55 276 6,6 % 75 808
% of sales 15,7 % 19,7 % 13,5 % 15,7 % 15,3 %
Income taxes -6 497 -6 230 4,3 % -17 008 -12 470 36,4 % -18 323
PROFIT FOR THE PERIOD 18 019 19 221 -6,3 % 41 917 42 806 -2,1 % 57 485
% of sales 11,6 % 14,9 % 9,6 % 12,1 % 11,6 %
1-12/
2007
7-9/
2008
7-9/
2007
1-9/
2008
1-9/
2007
36
Consolidated balance sheet
30.9. 30.9. Change 31.12.
EUR (1 000) 2008 2007 % 2007
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 621 860 443 913 40,1 % 487 038
Goodwill 159 390 152 088 4,8 % 152 367
Other intangible assets 108 651 90 236 20,4 % 95 359
Available-for-sale investments 317 334 -5,1 % 332
Receivables 5 329 1 695 214,4 % 3 954
Deferred income tax assets 9 159 4 136 121,4 % 2 974
TOTAL NON-CURRENT ASSETS 904 707 692 402 30,7 % 742 024
CURRENT ASSETS
Inventories 20 250 18 992 6,6 % 16 903
Trade and other receivables 140 982 124 515 13,2 % 117 548
Cash and cash equivalents 19 200 14 699 30,6 % 18 489
TOTAL CURRENT ASSETS 180 433 158 206 14,0 % 152 940
TOTAL ASSETS 1 085 139 850 608 27,6 % 894 964
30.9. 30.9. Change 31.12.
EUR (1 000) 2008 2007 % 2007
EQUITY AND LIABILITIES
EQUITY
Share capital 24 835 24 835 0,0 % 24 835
Share issue 0 0 0
Share premium fund 186 910 186 910 0,0 % 186 910
Fair value reserve 117 117 0,0 % 117
Hedging fund 6 877 4 347 58,2 % 6 334
Translation differences -8 528 2 666 -419,9 % -1 867
Retained earnings 138 905 103 545 34,1 % 117 351
TOTAL EQUITY 349 116 322 420 8,3 % 333 680
RESERVES
Reserves 347 235 47,7 % 363
NON-CURRENT LIABILITIES
Deferred income tax liabilities 73 545 62 551 17,6 % 62 200
Interest-bearing liabilities 321 064 294 168 9,1 % 274 087
CURRENT LIABILITIES
Trade and other payables 129 237 98 915 30,7 % 115 247
Interest-bearing liabilities 211 830 72 319 192,9 % 109 387
TOTAL LIABILITIES 735 676 527 953 39,3 % 560 921
TOTAL EQUITY AND
LIABILITIES 1 085 139 850 608 27,6 % 894 964
37
Cash flow statement
1-9/ 1-9/ 1-12/
EUR (1 000) 2008 2007 2007
Cash flows from operating activities 78 373 78 243 138 653
Cash flows from investing activities -187 215 -113 111 -175 234
Cash flows from financing activities
Proceeds from issue of share capital 1 258 1 258
Dividends paid -19 929 -15 326 -15 326
Increase (+) / decrease (-) in liabilities 101 698 29 317 34 393
Increase (+) / decrease (-) in lease liabilities 28 120 -7 783 -6 590
Cash flows from financing activities, total 109 889 7 466 13 735
Net change in cash and cash equivalents 1 047 -27 402 -22 846
Cash and cash equivalents at period-start 18 489 41 823 41 823
Translation difference -336 278 -488
Cash and cash equivalents at period-end 19 200 14 699 18 489
38
Segment performance7-9/ 7-9/ Change 1-9/ 1-9/ Change 1-12/
SALES, EUR (1 000) 2008 2007 % 2008 2007 % 2007
Equipment rental
Finland 24 947 21 733 14,8 % 66 415 54 864 21,1 % 75 761
Sweden 61 242 55 138 11,1 % 181 298 154 338 17,5 % 214 515
Western Europe 26 999 19 053 41,7 % 76 732 54 345 41,2 % 77 462
Central and Eastern Europe 23 476 16 263 44,4 % 57 578 40 081 43,7 % 58 202
Equipment rental, total 136 666 112 187 21,8 % 382 023 303 628 25,8 % 425 940
- between the segments -96 -35 174,3 % -206 -133 54,9 % -227
Modular space 20 367 18 376 10,8 % 59 143 54 350 8,8 % 76 733
- between the segments -1 239 -1 567 -20,9 % -4 473 -5 190 -13,8 % -6 017
Eliminations -1 335 -1 602 -16,7 % -4 679 -5 323 -12,1 % -6 244
Sales, total 155 697 128 962 20,7 % 436 486 352 655 23,8 % 496 428
Netherlands' share of W.E. 0 0 0 2 954 2 954
7-9/ 7-9/ Change 1-9/ 1-9/ Change 1-12/
EBITA, EUR (1 000) 2008 2007 % 2008 2007 % 2007
Equipment rental
- Finland 6 983 5 478 27,5 % 11 692 10 336 13,1 % 14 493
- Sweden 16 214 14 248 13,8 % 40 288 35 343 14,0 % 47 952
- Western Europe 2 064 2 028 1,8 % 4 749 4 777 -0,6 % 6 487
- Central and Eastern Europe 5 159 5 887 -12,4 % 9 638 12 146 -20,6 % 17 082
Equipment rental, total 30 421 27 642 10,1 % 66 368 62 602 6,0 % 86 014
Modular space 6 110 4 851 26,0 % 17 767 14 047 26,5 % 19 358
Non-allocated capital gains 0 0 0,0 % 6 025 4 026 49,7 % 4 026
Non-allocated Group activ. -2 138 -1 552 37,8 % -7 068 -10 327 -31,6 % -12 859
Eliminatons -177 -204 -13,2 % -782 -529 47,8 % -576
EBITA, total 34 215 30 736 11,3 % 82 310 69 819 17,9 % 95 963
Netherlands' share of W.E. 0 0 0 193 193