CRAMO FINANCIAL STATEMENTS BULLETIN 1 JANUARY-31 DECEMBER 2006 - CRAMO'S STRONG
PROFIT PERFORMANCE CONTINUED THROUGHOUT THE YEAR
- Consolidated sales EUR 402.4 (77.0) million, up by 20.4 per cent on the
previous year's pro forma sales (EUR 334.3 million).
- Consolidated operating profit (EBITA) before amortisation on intangible assets
resulting from acquisitions, EUR 72.8 (18.0) million.
- Operating profit (EBIT) EUR 68.6 (18.0) million, up by 87.9 per cent on the
previous year's pro forma operating profit (EUR 36.5 million).
- Earnings per share, undiluted EUR 1.39 (0.83), diluted, EUR 1.36 (0.81).
- The acquisition of Cramo Holding B.V. through a share-based transaction on 3
January 2006 and its integration was successful.
- The company was renamed Cramo Plc on 24 November 2006.
- The Board of Directors proposes a dividend of EUR 0.50 (0.25) per share.
- In 2007, Cramo expects its sales growth to exceed 10 % and its profitability
(EBITA-%) to increase against year 2006.
KEY FIGURES AND RATIOS
(EUR 1,000)
10-12/06 10-12/05 1-12/06 1-12/05
Sales, EUR 1,000 116,588 18,896 402,425 76,982
Operating profit (EBITA) before
amortisation on intangible assets
resulting from acquisitions (EBITA) 22,913 4,194 72,834 17,958
Operating profit (EBIT) 21,821 4,194 68,569 17,958
Profit before tax (EBT) 19,714 3,706 56,585 16,249
Profit for the period 15,091 2,511 41,944 11,927
Earnings per share (EPS) before
amortisation on intangible assets
resulting from acquisitions, diluted, EU 0.53 0.17 1.50 0.83
Earnings per share (EPS), undiluted, EUR 0.50 0.17 1.39 0.83
Earnings per share (EPS), diluted, EUR 0.49 0.17 1.36 0.81
Equity per share, EUR 9.66 3.77
Equity ratio, % 38.2 49.0
Gearing, % 104.6 89.7
Net interest-bearing liabilities 305,643 48,556
Gross capital expenditure, EUR 1,000 111,864 29.601
% of sales 27.8 38.5
Average personnel 1,828 569
STRONG UPWARD TREND IN DEMAND FOR RENTAL SERVICES
Cramo Plc is a service company specialising in equipment rental services, as
well as the rental and sale of modular space. Its equipment rental services
comprise construction machinery and equipment rentals and rental-related
services. These rental-related services include construction-site and
installation services.
As one of the industry's leading service providers in the Nordic countries and
Central and Eastern Europe, Cramo Plc operates in Finland, Sweden, Norway,
Denmark, the Netherlands, Estonia, Latvia, Lithuania, Poland, the Czech Republic
and Russia.
Construction volumes grew in all of Cramo's operating regions in 2006.
Euroconstruct, an international construction business research group, estimated
that construction grew in Europe by approximately three per cent on average. In
Finland, the Confederation of Finnish Construction Industries RT estimated
construction to have grown by 4.5 per cent. The Swedish Construction Federation
(Sveriges Byggindustrier) estimated that the Swedish construction market grew by
10 per cent. According to Euroconstruct's estimates, construction grew by six
per cent in Norway and 2.5 per cent in Denmark. In Russia and Central and
Eastern Europe, the construction investment growth rate is considerably higher
than in the Nordic countries. Country-specific growth-rate estimates in Central
and Eastern Europe vary between 8 and 15 per cent.
Cramo reckons that equipment rental services in all of its market areas have
shown a faster growth rate than the total growth in the construction market, due
for example to the rising rental penetration rate. Demand for modular space is
also estimated to have increased faster than growth in construction. Cramo
believes this trend to continue throughout the next few years.
SALES AND PROFIT
Cramo's consolidated sales and profit outperformed expectations during the
financial year, full-year sales improving by 422.6 per cent, to EUR 402.4 (77.0)
million. This substantial improvement in sales was due to Cramo Holding B.V.
Group accounts' inclusion in Cramo Plc's consolidated accounts as of 1 January
2006. Compared to the previous year's pro forma sales, the increase was 20.4 per
cent.
Cramo's consolidated sales and profit also developed favourably in the fourth
quarter. Fourth-quarter sales improved by 516.9 per cent, to EUR 116.6 (18.9)
million. Year on year, pro forma sales (EUR 92.4 million) increased by 26.2 per
cent. The good fourth-quarter performance was particularly attributable to the
mild weather that extended the construction season, as well as synergies gained
during the year. Demand for equipment rental services as well as modular space
was lively in all main market areas.
Consolidated operating profit before amortisation on intangible assets resulting
from corporate acquisitions (EBITA) in 2006 grew by 304.4 per cent, to EUR 72.8
(18.0) million. The fourth-quarter EBITA includes costs of EUR 0.3 million
associated with the change of the firm's business name.
Operating profit (EBIT) for 2006 increased by 281.1 per cent, to EUR 68.6 (18.0)
million. Year on year, EBIT rose by EUR 32.1 million against the pro forma EBIT
(EUR 36.5 million) of a year ago and represented an operating margin of 17.0
(10.9) per cent. Healthy demand, higher prices in the main market areas and
higher rental equipment utilisation rates contributed to this profitability
improvement.
Profit before tax came to EUR 56.6 (16.2) million and net profit totalled EUR
41.9 (11.9) million. Undiluted earnings per share amounted to EUR 1.39 (0.83)
and diluted earnings per share amounted to EUR 1.36 (0.81).
Return on investment (ROI) was 11.7 per cent and return on shareholder's equity
was 15.5 per cent. The balance sheet 31.12.2005 used for calculating the ratios
is based on pro forma figures.
CAPITAL EXPENDITURE AND DEPRECIATION
Strong demand in all of the Group's main markets required heavy investments in
2006. Gross capital expenditure of EUR 111.9 (29.6) million for the financial
year was mainly allocated to the purchase of rental equipment. Pro forma gross
capital expenditure in 2005 totalled EUR 92.2 million. The gross capital
expenditure for 2006 includes the acquisition of the Polish company MAROPOL
Sp.zo.o. in the first quarter. This acquisition did not generate any group
goodwill for Cramo.
Reported depreciation on property, plant and equipment, and software totalled
EUR 51.1 (11.2) million. Amortisation on intangible assets resulting from
acquisitions totalled EUR 4.3 million. At the end of the review period, goodwill
totalled EUR 152.8 million, of which EUR 141.2 million was related to the Cramo
acquisition.
FINANCIAL POSITION AND BALANCE SHEET
The Group showed a positive cash flow from operating activities in 2006, EUR
103.9 (26.7) million. Cash flow from investing activities came to EUR -96.3 (-
26.8) million. The fourth quarter showed a highly positive cash flow, as a
result of which the full-year 2006 cash flow from operating activities exceeded
that from investing activities. Cash flow from financing activities in 2006 was
EUR 10.8 (1.3) million. At the end of the financial year, cash and cash
equivalents amounted to EUR 41.8 (1.9) million, with the net change coming to
EUR 18.4 (1.3) million.
Cramo Group's interest-bearing liabilities on 31 December 2006 totalled EUR
347.5 (50.4) million. The Group has used interest-rate swaps of around EUR 152.8
million to hedge its non-current loans, and applies hedge accounting to this
entire amount. Cramo Group's off-balance sheet operating lease liabilities
amounted to EUR 37.6 (1.5) at the end of the financial year.
On 31 December 2006, Cramo Group's net interest-bearing liabilities totalled EUR
305.6 (48.6) million while its gearing stood at 104.6 (89.7) per cent.
On the same date, the balance sheet total came to EUR 770.9 (120.7) million and
the equity ratio was 38.2 (49.0) per cent.
GROUP STRUCTURE
At the end of the financial year, Cramo Group consisted of the following
operating companies: Cramo Plc (parent company) and its subsidiary Cramo Holding
B.V.'s subsidiaries in Sweden, Norway, Denmark, the Netherlands, Estonia,
Latvia, Lithuania and Poland; Tilamarkkinat Oy; and Suomen Tähtivuokraus Oy and
its subsidiaries in Estonia, Poland, the Czech Republic and Russia.
The reporting year saw the launch of measures to reduce the number of Group
subsidiaries and simplify the Group's legal structure. On 30 September 2006,
Suomen Projektivuokraus Oy, a subsidiary of VTM-Rakennuskonevuokraamo Oy, merged
with the latter, and VTM-Rakennuskonevuokraamo Oy merged with the parent
company. The simplification of the Group structure will continue in 2007.
A network of some 250 depots provides Cramo's equipment rental services.
Tilamarkkinat in Finland and Cramo Instant in Sweden, Denmark and Norway are
engaged in the modular space business.
BUSINESS DEVELOPMENT: EXPANSION THROUGH ACQUISITIONS AND A NEW STRATEGY
In the first quarter of 2006, Cramo Plc, at the time known as Rakentajain
Konevuokraamo Oyj, acquired Cramo Holding B.V., based on a share swap. The
consolidated Group of companies resulting from this transaction is one of the
industry's largest in Europe. The acquired Cramo Holding B.V. accounted for
approximately EUR 257.3 million of Cramo Group's pro forma sales in 2005 (Group
total EUR 334.3 million), and it had a staff of 1,077 (Group total 1,646).
The Extraordinary General Meeting (EGM) of 3 January 2006 decided to carry out a
merger with Cramo Holding B.V. through a share swap, allowing each shareholder
of Cramo Holding B.V. to subscribe for the company's shares, based on a private
placement, and pay the subscription price by disposing of all their holdings in
Cramo Holding B.V. shares to Cramo Plc. The subscription of new shares was
carried out as a subscription in kind so that each Cramo Holding B.V.
shareholder who subscribed for new shares in Cramo Plc received a total of
7,492.2535 new Cramo Plc shares for each Cramo Holding B.V. share. In connection
with the above, the EGM decided to increase the company's share capital by a
minimum of EUR 1 and by a maximum of EUR 12,137,450.67 through a rights issue
based on a private placement, waiving the shareholders' pre-emptive subscription
right, by offering a minimum of one and a maximum of 14,984,507 new company
shares, at a state value of EUR 0.81, for subscription by the shareholders of
Cramo Holding BV. All of the shares were subscribed and paid immediately after
the general meeting.
The integration progressed according to plan during the year, with operations
being integrated by closing down eight depots in Finland and combining
operations in Estonia and Poland. Other market areas have no overlapping
operations.
The company estimates that the acquisition of Cramo Holding B.V. will generate
approximately EUR 5 million in synergies in 2007. The greatest benefits will be
gained from the rationalisation of overlapping operations, higher order volumes
in procurement, the optimisation of modular space production, improved customer
relationship management and transfer of equipment across market borders, as well
as the introduction of best practices.
The strategy for the new Group was completed in August. In accordance with the
new strategy, the Group confirmed its ambition of growing into one of the three
largest rental service companies in Europe, through both organic growth and
acquisitions. The Group aims to rank among the two largest industry players in
each of its market areas, develop into the preferred supplier from the
customer's perspective and be one of the most profitable companies in the
industry.
Based on a decision by the Extraordinary General Meeting in November, the Group
was renamed Cramo Plc. The Group estimates that this change of business name
will generate costs of EUR 8 million, of which EUR 0.3 million were recorded in
2006. EUR 4.3 million in expenses and EUR 0.2 million in depreciation are
expected in 2007. Approximately EUR 3.4 million of the total expenses will be
amortised over 10 years.
The Group's new ERP system project will continue in 2007. The total cost of the
project is estimated to be approximately EUR 6 million.
Following its successful integration, the Group began to identify new growth
opportunities in the second half of 2006.
On 21 December, Cramo's Lithuanian subsidiary, UAB Cramo, acquired UAB
Aukstumines Sistemos (AS), the leading hoisting equipment rental company in
Lithuania. AS specialises in the supply of demanding hoisting equipment and mast
climbing platforms for construction and installation businesses and industry. AS
employs 31 people at three sites in Lithuania, and its sales for 2006 are EUR
2.2 million. This acquisition also made Cramo a market leader in Lithuania. AS
personnel will continue with Cramo, and the company will be consolidated within
Cramo Group as of 1 January 2007.
The Group aims to continue growth in accordance with its strategy, both
organically and through acquisitions. In particular, it is seeking growth in
Central and Eastern Europe, where it is also evaluating the possibility of
entering new market areas.
GROUP MANAGEMENT
Vesa Koivula continued as the President and CEO after the Cramo acquisition.
Göran Carlson, Cramo AB's CEO, was appointed his deputy in accordance with the
combination agreement, and Martti Ala-Härkönen as CFO.
Within Machine and Equipment Rental Services, Tatu Hauhio acts as Senior Vice
President Finland; Magnus Rosén as Senior Vice President, Scandinavia; and Jarmo
Laasanen as Senior Vice President, Other Europe. Ossi Alastalo, Tilamarkkinat
Oy's Managing Director, was appointed Senior Vice President, Modular Space, on 1
October 2006. Camilla Hensäter was appointed Senior Vice President for Modular
Space in Sweden, Norway and Denmark. Until October, Modular Space was the
responsibility of CEO Vesa Koivula in Finland and deputy CEO Göran Carlson in
Sweden.
Eva Harström took up her duties as Chief Information Officer on 14 August 2006.
The Group's Executive Committee comprises CEO Vesa Koivula, deputy CEO Göran
Carlson and CFO Martti Ala-Härkönen. The Enlarged Executive Committee also
includes the Senior Vice Presidents Tatu Hauhio, Magnus Rosén, Jarmo Laasanen
and Ossi Alastalo, Vice President of Corporate Communications Anders Collman,
Vice President of Asset Management Mats Stenholm and CIO Eva Harström (Hans
König until 16 June 2006).
HUMAN RESOURCES
During 2006, Group staff averaged 1,828 (569), up 11.1 per cent compared with
the average pro forma staff (1,646) a year earlier. This growth was due to
business expansion, especially in Sweden and Central and Eastern Europe. The
equipment rental business had 1,634 employees and the modular space business 194
employees on average in 2006.
The geographical distribution of personnel is as follows: Finland 33.2%, Sweden
33.4%, Western Europe 13.8% and Other Europe 19.6%.
The first quarter saw statutory Information and Consultation of Employees
related to the integration of Cramo AB's Finnish operations with those of Cramo
Plc and Suomen Projektivuokraus Oy. The closure of eight depots led to 16
redundancies that took effect in the second quarter.
Human resource development has focused on the development of sales and customer
service skills. The most significant project includes a three-year sales and
management training programme launched in Sweden in August 2005, in which almost
all of Swedish sales and executive personnel are participating. A programme for
sales and customer service competencies was launched in Finland in December
2006. Similar training has also been arranged in the other Nordic countries.
Systematic development of sales, leadership and customer service competencies
will begin in Central and Eastern Europe in 2007.
PERFORMANCE BY BUSINESS SEGMENT
Cramo Group's business consists of the following two segments: equipment rental
and modular space. Its equipment rental business segment is also reported by
geographic segment as follows: Finland, Sweden, Western Europe (Norway, Denmark
and the Netherlands) and Other Europe (Estonia, Latvia, Lithuania, Poland, the
Czech Republic and Russia).
EQUIPMENT RENTAL
The machine and equipment rental business posted sales of EUR 339.7 (52.2)
million in 2006, up 22.5 per cent on pro forma sales in 2005 (EUR 277.3
million). Sales grew in Central and Eastern Europe in particular.
The equipment rental business made an operating profit (EBITA) of EUR 66.7
(11.2) million. Compared to the 2005 pro forma operating profit (EUR 37.4
million), the operating profit (EBITA) improved by 78.3 per cent and stood at
19.6 (21.5) per cent of sales.
Sales in the fourth quarter amounted to EUR 97.7 (13.4) million, up by 28.9 per
cent on pro forma sales (EUR 75.8 million) a year ago.
The equipment rental business's sales distribution by geographic segment in 2006
was as follows: Finland 17.7 per cent, Sweden 51.5 per cent, Western Europe 19.5
per cent and Other Europe 11.3 per cent. The share of Other Europe increased in
line with expectations.
The business segment's major customers operate in the construction sector and
manufacturing industry. In addition, the segment provides services to the public
sector and, particularly in Finland, to private customers.
Finland
In Finland, the equipment rental business reported sales of EUR 60.2 (57.2)
million in 2006, up by 5.2 per cent, while operating profit (EBITA) came to EUR
10.4 (9.9) million, accounting for 17.2 (17.3) per cent of sales. The
comparatives in parenthesis are based on pro forma figures for 2005.
The fact that sales grew more slowly than the market rate was due to a decline
in new construction in the Helsinki Metropolitan Area, which is Cramo's main
market in Finland, as well as the integration effort that burdened Finnish
operations in particular.
Our Finnish rental operations did not meet expectations in the fourth quarter.
The profitability of Finnish operations weakened slightly in 2006 compared to
the previous year, but remained at a healthy level. The objective in 2007 is to
improve both the growth rate and profitability. Achieving these targets will
require success in increasing the awareness of the Cramo brand, for example.
Cramo is one of the two leading players in the Finnish equipment rental market.
In addition, there are many small and highly specialised competitors in Finland.
Cramo estimates its market share to be approximately one quarter.
The Confederation of Finnish Construction Industries RT estimated construction
to have grown by 4.5 per cent in 2006. RT forecasts a 2.5 per cent growth rate
in 2007. This growth will be sustained by an increase in office building
construction in the Helsinki Metropolitan Area, manufacturing warehouse
construction, as well as commercial construction. Renovation projects are
expected to see steady growth, while civil engineering projects should
experience an upward trend. Several large construction projects are about to
begin in the Helsinki region.
Demand for services associated with equipment rental services, such as heating
and other construction-site services, is clearly increasing, and Cramo also aims
to strengthen its market position in these services.
Sweden
In Sweden, the equipment rental business reported sales of EUR 174.7 (145.6)
million, up by 20.0 per cent, while operating profit (EBITA) came to EUR 35.9
(20.0) million, representing 20.5 (13.7) per cent of sales. The comparatives in
parenthesis are based on pro forma figures for 2005.
The Swedish rental business continued to develop favourably throughout the year,
which, in addition to sustained demand, was due to previous investments in
machines and equipment, the depot network and service concepts. Furthermore,
Cramo focused its investments more on equipment categories generating the best
possible return on investment. The rental fleet utilisation rate was high
throughout the year.
Strong growth in rental operations in Sweden continued in the fourth quarter.
Profitability exceeded expectations, due for example to the mild early winter.
Cramo is the market leader in equipment rentals in Sweden. It has one nationwide
competitor, a few regional competitors and a large number of rival rental firms
on a local and somewhat specialised basis. Cramo reckons that it holds a market
share of slightly over one third.
After a prolonged sluggish period, construction in Sweden began to pick up in
2005 and continued to grow strongly throughout 2006. The strongest growth was
seen in housing construction, but growth in this market is expected to slow down
in 2007. Towards the end of the year, the Swedish Construction Federation
(Sveriges Byggindustrier) revised up its forecast for construction market growth
in 2006 from seven to ten per cent. Cramo reckons that the equipment rental
market has grown at a clearly faster rate than that of the total construction
market.
Construction is expected to grow by approximately four per cent in Sweden in
2007 (Sveriges Byggindustrier). Good performance and growth recorded in 2006
will provide solid foundations for success in 2007.
Western Europe
Cramo's equipment rental business in Western Europe covers its Norwegian, Danish
and Dutch operations.
In Western Europe, the equipment rental business reported sales of EUR 66.3
(51.4) million, up by 29.0 per cent, while operating profit (EBITA) was EUR 8.4
(1.5) million, or 12.7 (2.9) per cent of sales. The comparatives in parenthesis
are based on pro forma figures for 2005. Growth and profitability also developed
favourably during the fourth quarter, with the favourable market situation, the
Group companies' organisational changes and development measures, as well as
well-timed investments, contributing to improved sales and profit performance.
Cramo's business made good progress especially in Norway, where Cramo has
strengthened its market position. The Norwegian market is characterised by one,
undisputed market leader, a few medium-sized and several small local rental
service companies. Cramo reckons that its market share in Norway stands at
around nine per cent, which makes it the third largest service provider in terms
of market position. There are major infrastructure projects currently underway
in Norway, in which Cramo is involved.
The business volume also grew in Denmark, where there are numerous small service
providers. Cramo reckons that it has a market share of approximately five per
cent and holds the number five position in the market. The financial year saw
dedicated efforts to develop the Danish depot network and organisation,
gradually bearing fruit in terms of greater operational efficiency and markedly
improved profitability towards the year-end.
Cramo's market share in the Netherlands is approximately two per cent. Its
operations concentrate in the Randstad region, particularly on civil engineering
services. The business developed favourably during the second half in
particular. Favourable development is expected to continue in 2007.
Cramo expects conditions in the Norwegian, Danish and Dutch equipment rental
services markets to remain favourable and its sales to increase at a faster rate
than overall growth in the construction market and the rental equipment services
market. The objective is to expand the depot network and to increase the
offerings, particularly in major cities.
Other Europe
Cramo Group's equipment rental business in Other Europe covers Estonia, Latvia,
Lithuania, Poland, the Czech Republic and the St. Petersburg region in Russia.
In Other Europe, the equipment rental business reported sales of EUR 38.4 (23.0)
million, up by 66.8 per cent, while operating profit (EBITA) amounted to EUR
12.0 (6.1) million, accounting for 31.2 (26.3) per cent of sales. The
comparatives in parenthesis are based on pro forma figures for 2005.
Strong growth in rental operations and earnings continued in Other Europe
throughout the year. Demand for equipment rental services increased in all of
Cramo's Central and Eastern European operating regions.
Construction is booming in Russia, Poland and Estonia. Housing construction is
projected to increase remarkably in Russia in 2007, boosted by internal
migration and more prosperous households. Increasing housing construction will
also be reflected in the construction of shopping centres. In Russia, Cramo is
monitoring not only the St. Petersburg region's market but also other growing
market areas.
Construction should grow by approximately 8.5 per cent in Poland in 2007
(Euroconstruct), with a great deal of regional variation. The strongest growth
will be seen in investments in civil engineering, as well as industrial and
commercial construction.
Country-specific growth estimates in the Baltic states vary between 8 and 13 per
cent, with Estonia expected to show the strongest growth in construction. The
growth rate is forecast to be 11 per cent in Latvia, and 8 per cent in Lithuania
in 2007 (Euroconstruct). Cramo is the market leader in Estonia and Lithuania.
Demand for rental services in Central and Eastern Europe is being boosted by
booming construction and a rising rental penetration rate. In accordance with
its strategy, Cramo aims to strengthen its position in the growing markets of
Central and Eastern Europe both through acquisitions and by opening new depots.
The company is also investigating the possibility to enter new markets within
Central and Eastern Europe.
MODULAR SPACE
The modular space business reported sales of EUR 65.5 (58.3) million in 2006.
Operating profit (EBITA) from the modular space business was EUR 14.9 (13.1)
million. Sales increased by 12.3 per cent compared to pro forma figures for
2005. Operating profit (EBITA) against pro forma figures increased by 14.3 per
cent and accounted for 22.8 per cent of sales.
Streamlining measures taken in Sweden during the first half coupled with
improved utilisation rates and higher prices attributable to brisk demand in all
market areas, improved profitability.
Sales and profitability developed favourably throughout the year, and the
fourth-
quarter results were even better than expected. The rental utilisation rate also
increased, peaking at the end of the year.
The vast majority of sales generated by the modular space business come from the
Finnish and Swedish markets. In addition, the company operates in Norway and
Denmark. Cramo leads the market for modular space in Finland and Sweden. It
reckons that its market share is some 80 per cent in Finland and 30 per cent in
Sweden.
While its Finnish operations involve the rental, sale and manufacture of modular
space, Cramo's Swedish, Norwegian and Danish operations cover only their rental
and sale. Rental operations account for some 70 per cent of sales. Approximately
30 per cent of sales come from the sale of modular space in Finland and Sweden,
as well as the sale of industrial sheds and site facilities in Finland.
Modular space refers to highly prefabricated and pre-equipped building modules
that can be moved as space requirements change. The most important applications
include schools, day-care centres and offices, as well as expansion investments
in industry. The public sector and industry each represent more than 40 per cent
of sales and construction firms make up less than ten per cent.
Cramo aims to increase its rental business in particular, bearing in mind that
rental agreements concluded on a long-term basis make the Group less vulnerable
to industrial and economic fluctuations. Demand for even longer-term rental
agreements rose during 2006, and Cramo forecasts that agreements exceeding 10
years will become more commonplace.
Demand for modular space is vigorous in Finland, Sweden and Norway alike. The
Norwegian market is expected to grow faster than average due to new space
requirements dictated by legislative reforms, among other things. Cramo has a
very long order book for 2007.
SALES BY GEOGRAPHICAL SEGMENT
Cramo Plc's secondary segment reporting format is based on geographical regions.
During the reporting period, Finland generated EUR 91.7 million (22.5 per cent)
of consolidated sales, Sweden EUR 206.1 million (50.7 per cent), Western Europe
EUR 70.8 million (17.4 per cent) and Other Europe EUR 38.5 million (9.4 per
cent).
These figures include both the equipment rental business and the modular space
business.
SHARES, SHARE CAPITAL AND STOCK OPTION SCHEMES
On 31 December 2006, Cramo Plc had a share capital of EUR 24,507,658.08 and
total shares of 30,256,368.
As part of the merger between Cramo Plc (Rakentajain Konevuokraamo Oyj) Cramo
Holding B.V., the Extraordinary General Meeting (EGM) of 3 January 2006 decided
to lower the stated value of the company's share with the effect that the share
capital was reduced to EUR 11,615,243.67. This share capital reduction was
entered under unrestricted shareholders' equity. The EGM of 3 January 2006
decided to combine the Company's two share series to form a single series of
shares, and a private placement related to this combination of share series
increased the share capital by EUR 559,861.47 and the number of shares by
691,187. The EGM decided to reduce the share capital by decreasing the stated
value of all company shares without payment by EUR 0.88, from EUR 1.69 to EUR
0.81. As regards the company's Series A shares, the reduction of share capital
amounted to EUR 1,520,640, and for Series B shares EUR 11,098,390.16. As a
result of the reduction in share capital, Cramo's share capital of EUR
24,234,273.83, as registered on 3 January 2006, was reduced to EUR
11,615,243.67. This had no impact on the number of shares issued by the company.
The EGM also decided that, simultaneous to the reduction in share capital, the
share capital be increased by a total of EUR 12,697,312.14 by issuing new
shares, whose amount would exceed the amount of reduced share capital. The
restricted equity did not decrease as a result of this planned reduction and
increase of share capital.
The EGM of 3 January 2006 decided on a rights issue, offering shares for
subscription by four of Cramo Holding B.V.'s shareholders in such a way that
Cramo Plc increased its share capital by EUR 12,137,450.67 by offering
14,984,507 new shares to Cramo Holding B.V.'s shareholders against 2,000 Cramo
Holding B.V. shares given as subscription in kind. The resulting change in share
capital was registered in the Trade Register on 4 January 2006, the number of
shares totalling 30,015,501 and share capital EUR 24,312,555.81.
The EGM of 3 January 2006 decided to combine the company's Series A and B shares
in such a way that the differences between Series A and B shares were removed
from the Articles of Association and both share series were combined to form a
single series of shares. The Series A shares were converted into Series B shares
(one Series B share in exchange for one Series A share). Furthermore, the Series
A shareholders were offered, waiving the shareholders' pre-emptive subscription
rights, the right to subscribe for one new share with an stated value of EUR
0.81 in exchange for 2.5 Series A shares in compensation for the decrease in
higher voting rights.
The EGM decided to increase share capital by a maximum of EUR 559,872 by
offering a maximum of 691,200 new company shares, at a stated value of EUR 0.81,
for subscription by the holders of Series A shares. All of the shares were
subscribed immediately after the general meeting, upon which the subscriptions
were paid.
As a result of the combination of the share series and the related private
placement, Cramo Plc shares and the rights they confer changed in such a way
that the company has now only one share series, and all shares are listed on the
Helsinki Stock Exchange. All company shares entitle their holders to exercise
the same rights.
From January to March, Cramo Plc's share capital increased by EUR 29,484.00 as a
result of share subscriptions based on the 2002 stock options, registered in the
Trade Register on 9 March 2006. Between 9 March and 30 September 2006, a total
of 58,400 shares were subscribed based on the 2002 stock options. At its meeting
on 24 October 2006, the Board considered these share subscriptions and the
resulting increase of share capital, registered in the Trade Register on 3
November 2006. The new shares have been traded since 6 November 2006.
From October to December, a total of 187,292 Cramo Plc shares were subscribed
based on the 2002 stock options. The Board confirmed the share subscriptions and
the resulting increase of share capital on 27 February 2007.
The Board will next discuss share subscriptions based on the stock option
schemes at its meetings on 28 March 2007 and 18 April 2007.
Valid stock option schemes
The EGM of 20 November 2006 decided on a stock option scheme comprising a
maximum total of 3,000,000 stock options entitling their holders to subscribe
for a maximum of 3,000,000 new company shares. The share subscription price is
based on the market price of Cramo Plc shares quoted on the Helsinki Stock
Exchange in October 2006, October 2007 and October 2008. The share subscription
period is: for stock options 2006A, 1 October 2009-31 January 2011; for stock
options 2006B, 1 October 2010-31 January 2012; and for stock options 2006C, 1
October 2011-31 January 2013.
The Annual General Meeting (AGM) of 4 April 2002 decided on the stock option
scheme 2002 in which a total of 670,000 stock options were issued to key
personnel, entitling them to subscribe for 670,000 Cramo Plc shares. As a result
of this stock option scheme, the share capital may increase by EUR 1,132,300.00.
The share subscription price is the trading-weighted average price of the
company's Series B share quoted on the Helsinki Stock Exchange between 5 April
and 4 June 2002, plus 10 per cent - EUR 5.27 - which will be deducted by the
amount of dividends distributed before the share subscription on the record
date. The minimum subscription price is the share's stated value.
As a consequence of dividend payments, the subscription price decreased by EUR
0.50 on 7 April 2003, EUR 0.50 on 7 April 2004, EUR 0.30 on 13 December 2004,
EUR 0.25 on 11 April 2005 and EUR 0.25 on 11 April 2006, resulting in a
subscription price of EUR 3.47 per share.
A total of 335,000 B stock options, based on Cramo Plc's 2002 stock option
scheme, have been listed for trading together with the listed 2002 A stock
options since 2 May 2006. The subscription period for both stock options will
end on 31 March 2007.
TRADING ON THE HELSINKI STOCK EXCHANGE
Cramo Plc has been listed on the Helsinki Stock Exchange since 1988 and its
short name is CRA1V. Cramo Plc shares are quoted within the Mid Cap segment,
based on market capitalisation, under Industrials on the Nordic List introduced
on 2 October 2006.
During the financial year 1 January-31 December 2006, the Cramo Plc share quoted
a low of EUR 11.10 and a high of EUR 19.00. The trade-weighted average amounted
to EUR 13.44. On 31 December 2006, the share closed at EUR 18.90 and the
company's market capitalisation was EUR 571.8 million.
GENERAL MEETINGS OF SHAREHOLDERS
Extraordinary General Meeting on 3 January 2006
The Extraordinary General Meeting of 3 January 2006 made the following decisions
related to the combination agreement between Cramo Plc (Rakentajain
Konevuokraamo Oyj) and Cramo Holding B.V., in accordance with the Board of
Directors' proposal:
The EGM approved the reduction of share capital by decreasing the stated value
of the share. The EGM approved the combination of the series A and B shares, the
amendment to the Articles of Association related thereto and the share issue
placed with the holder of Series A shares. In connection with the combination of
the share series, the EGM decided to amend the title III and the underlying
article 4 of the Articles of Association as follows: "The Company has a minimum
of 2,000,000 and a maximum of 44,000,000 shares. The shares have no nominal
value." The EGM approved the share issue placed with the shareholders of Cramo
Holding BV.
The EGM elected the following Board members: Gunnar Glifberg, Stig Gustavson,
Phil van Haarlem, Eino Halonen, Pekka Heusala, Hannu Krogerus and Juhani
Nurminen.
Annual General Meeting on 6 April 2006
Cramo Plc's Annual General Meeting on 6 April 2006 considered the matters
assigned to the Annual General Meeting as stipulated in the Articles of
Association, and approved the financial statements of the company and the Group
for 2005.
Based on the Board's proposal, the AGM decided that a dividend of 0.25 EUR per
share be distributed. The AGM discharged the members of the Board and the CEO
from liability for the financial year 2005.
The AGM re-elected all members of the Board of Directors elected on 3 January
2006.
The AGM elected the following auditors: APA Tomi Englund and Ernst & Young Oy
(Authorised Public Accountants), APA Erkka Talvinko with the main audit
responsibility, and APA Roger Rejström as deputy auditor.
Extraordinary General Meeting on 20 November 2006
In accordance with the Board's proposals, Cramo Plc's Extraordinary General
Meeting of 20 November 2006 decided to rename the company Cramo Plc and update
the Articles of Association as a whole. The new Articles of Association were
presented in the stock exchange release of 20 November 2006.
In accordance with the Board's proposal, the EGM of 20 November 2006 made the
decision to issue stock options to Cramo Plc's key personnel and Kiinteistö Oy
RK-Kehä, a wholly owned subsidiary. The maximum number of stock options is
3,000,000, entitling their holders to subscribe for a maximum of 3,000,000 new
company shares. The terms and conditions of the stock option scheme were
disclosed in the stock exchange release of 25 October 2006.
VALID BOARD AUTHORISATIONS
The Board has no valid authorisations to grant issue convertible
bonds, increase share capital or buy back treasury shares. The Board has a
valid authorisation to grant 2006 stock options comprising a maximum amount of
3,000,000 as decided in EGM of 20 November 2006.
CORPORATE GOVERNANCE AND AUDITORS
Cramo Plc's Board of Directors from 3 January 2006 onwards comprises Gunnar
Glifberg, Stig Gustavson, Phil van Haarlem, Eino Halonen, Pekka Heusala, Hannu
Krogerus and Juhani Nurminen. The Audit Committee is made up of Pekka Heusala
(Chair), Eino Halonen and Phil van Haarlem. The Nomination and Compensation
Committee comprises Stig Gustavson (Chair), Pekka Heusala and Hannu Krogerus.
All members of the Board, except Gunnar Glifberg, are non-executive Board
members independent of the company. Glifberg, Gustavson, Heusala, Nurminen,
Krogerus, and since 29 November 2006, Phil van Haarlem are independent of major
shareholders.
On 31 December 2006, the members of the Board of Directors, CEO and his deputy,
either personally or through controlled corporations, held a total of 105,290
Cramo Plc shares representing 0.35 per cent of all shares and votes, as well as
a total of 12,450 stock options. Furthermore, neither the Board members, CEO nor
his deputy have subscribed shares using stock options between 1 January and 27
February 2007.
Members of the Board of Directors until 2 January 2006 included Paavo Ruusuvuori
(Chair), Matti Koskenkorva, Asko Järvinen, Jari Lainio, Juhani Nurminen, Eino
Halonen and Pekka Pystynen.
The company's auditors were Tomi Englund, Authorised Public Accountant, and
Ernst & Young Oy, Authorised Public Accountants, with Erkka Talvinko, Authorised
Public Accountant, having the main audit responsibility, and Roger Rejström,
Authorised Public Accountant, as the deputy auditor.
Cramo Plc observes the Corporate Governance Recommendation for Listed Companies
issued by the Helsinki Stock Exchange, the Central Chamber of Commerce of
Finland and the Confederation of Finnish Industry and Employers. Cramo Plc's
insider guidelines are based on the Securities Market Act, rules and regulations
issued by the Financial Supervision Authority, as well as the insider guidelines
of the Helsinki Stock Exchange effective since 1 January 2006. Finnish Central
Securities Depository Ltd maintains an insider register of Cramo Plc's permanent
insiders, whose holdings are also available on Cramo Plc's website.
CHANGES IN SHAREHOLDINGS
In connection with the combination of Cramo Plc (Rakentajain Konevuokraamo Oyj)
and Cramo Holding B.V., the company received the following notifications
pursuant to Chapter 2, Section 9 of the Securities Market Act on 4 January 2006:
Rakennusmestarien Säätiö announced that its holding had lowered to less than
one-
tenth (1/10) of Rakentajain Konevuokraamo Oyj's share capital and votes (new
holding of 9.3 per cent). Rakennusmestarit ja -insinöörit AMK RKL announced that
its holding had lowered to less than one-twentieth (1/20) of Rakentajain
Konevuokraamo Oyj's share capital and votes (new holding of 1.7 per cent).
Pohjola Non-life Insurance Company Ltd announced that its holding had lowered to
less than one-twentieth (1/20) of Rakentajain Konevuokraamo Oyj's share capital
and votes (new holding of 3.78 per cent). Suomi Mutual Life Assurance Company
announced that its holding had lowered to less than one-tenth (1/10) of
Rakentajain Konevuokraamo Oyj's share capital and votes (new holding of 5.34 per
cent). Suomi Mutual Life Assurance Company announced that its holding exceeded
three-twentieths (3/20) of Rakentajain Konevuokraamo Oyj's share capital and
votes (new holding of 15.33 per cent). Pon Holdings B.V. announced that its
holding exceeded a quarter (1/4) of Rakentajain Konevuokraamo Oyj's share
capital and votes (new holding of 28.4 per cent). ABN AMRO Bank N.V. announced
that its holding had increased to one-tenth (1/10) of the share capital and
votes (new holding of 10.0 per cent). These changes in holdings related to the
business combination took effect on 4 January 2006 and were published on the
same day.
On 15 March 2006, ABN AMRO Bank N.V. announced that its holding had lowered to
less than one-twentieth (1/20) of Rakentajain Konevuokraamo Oyj's share capital
and votes (new holding of 3.3 per cent). On the same date, Highfields Capital
Management LP announced that the holding of its investment funds Highfields
Capital I LP, Highfields Capital II LP and Highfields Capital Ltd. had reached
one-twentieth (1/20) of Rakentajain Konevuokraamo Oyj's share capital (new
holding of 8.4 per cent).
On 29 November, Cramo Plc received a notification according to which Pon
Holdings B.V.'s holding had lowered to less than one-twentieth (1/20) of Cramo
Plc's share capital and votes, decreasing from 28.4 per cent to 0.00 per cent.
The OP Bank Group Central Cooperative announced on 7 December 2006 that the
combined holdings of the subsidiaries of OP Bank Group Central Cooperative and
the mutual funds managed by said subsidiaries had exceeded one twentieth (5%) of
Cramo Plc's shares and share capital, with the new holding totalling 1,530,553
shares, or 5.06 per cent of the shares and votes.
The OP Bank Group Central Cooperative announced on 12 December 2006 that the
combined holdings of the subsidiaries of OP Bank Group Central Cooperative and
the mutual funds managed by said subsidiaries had lowered to less than one
twentieth (5%) of Cramo Plc's share capital and votes, with the new holding
totalling 960,553 shares, or 3.17 per cent of the shares and votes.
The ten largest shareholders on 29 December 2006:
Shareholder No. of shares % of shares
Nominee registered (Nordea Bank Finland Plc) 7,929,941 26.21
Suomi Mutual Life Assurance Company 5,200,102 17.19
Nominee registered (Skandinaviska Enskilda Banken AB) 1,804,225 5.96
Rakennusmestarien Säätiö 1,705,620 5.64
Mutual Pension Insurance Company Ilmarinen 865,000 2.86
Pohjola Non-Life Insurance Company 533,840 1.76
Varma Mutual Pension Insurance Company 500,000 1.65
Thominvest Oy 444,200 1.47
OP-Suomi Pienyhtiöt 336,713 1.11
Nominee registered (Svenska Handelsbanken AB (Publ),
Filialverksamheten i Finland) 332,320 1.10
Other shareholders 10,604,407 35.05
Total 30,256,368 100.00
BOARD OF DIRECTORS' PROPOSAL FOR PROFIT DISTRIBUTION
The Board of Directors proposes to the Annual General Meeting that a dividend of
EUR 0.50 per share be paid for the financial year 1 January-31 December 2006.
The Board of Directors has assessed the company's future business operations and
considers that the proposed dividend distribution does not constitute a risk to
the company's solvency.
At its meeting on 27 February 2007, the Board of Directors specified the
company's new profit distribution policy as follows: "Cramo Plc's profit-
distribution goal is to distribute around a third of the Group's annual profit
in terms of share buybacks and/or dividends. The target is to maintain a
steadily improving flow of dividends, however while taking into account the
group's investment requirements for growth."
EVENTS AFTER THE FINANCIAL YEAR
On 2 January 2007, Cramo's Norwegian subsidiary, Cramo AS, acquired Hamar
Liftutleie AS. With a staff of five, Hamar Liftutleie should record sales of
roughly EUR 2.0 million in 2006. This acquisition will strengthen Cramo's
position in the Norwegian equipment rental market, especially in the Ostlandet
region. Furthermore, Cramo AS acquired Kongsberg Maskinutleije AS on 4 January
2007. With a staff of two, Kongsberg Maskinutleije sales was EUR 0.65 million in
2006.
The personnel of all of these acquirees will continue with Cramo Group and the
acquired companies have been included in Cramo Group's accounts since 1 January
2007.
The company announced on 26 January 2007 that it had issued a total of 786,000
2006A stock options to its key personnel. The total expenses of these stock
options are estimated at EUR 4.5 million, EUR 1.6 million of which will be
recognised in 2007.
A total of 288,145 shares have been subscribed for under the Cramo Plc 2002
stock option scheme since the end of the financial year 2006 and share capital
will be increased by EUR 233,397.45. The Board of Directors confirmed the
subscriptions on 27 February 2007.
As part of the simplification of the corporate structure, the parent company
Cramo Plc's equipment rental operations in Finland will be transferred to Cramo
Finland Oy, a wholly owned subsidiary of the parent company, as of 1 April 2007.
FUTURE PROSPECTS
Economic development is expected to remain favourable with respect to Cramo's
business environment. Growth in construction coupled with major infrastructure
projects in industry and in the public sector will fuel growth in the equipment
rental business. The growth in Nordic construction is forecasted to stabilise on
a slightly lower level after 2006. Central and Eastern Europe are expected to
see sustained strong growth in construction. Equipment rental services should
expand faster than growth in construction, due for example to increasing
penetration rates for these services. Demand for modular space is also expected
to continue growing in the near term.
The company's profit performance in 2006 showed that the successful integration
of the Cramo Group's operations has provided solid foundations for the Group's
favourable development in the future. Cramo will continue to seek new growth
opportunities. In 2007, Cramo expects its sales growth to exceed 10 % and its
profitability (EBITA-%) to increase against year 2006.
The data in this financial statements bulletin are based on unaudited figures.
TABLES
This Financial Report has been prepared in accordance with IFRS-compliant
recognition and measurement principles, but not all of the requirements of IAS
34 (Interim Financial Reporting) have been applied.
CONSOLIDATED BALANCE SHEET (EUR 1,000)
31.12.06 31.12.05
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 367,950 91,846
Goodwill 152,802 11,615
Other intangible assets 95,452 831
Available-for-sale investments 320 306
Receivables 559 173
Deferred income tax assets 2,423 576
TOTAL NON-CURRENT ASSETS 619,506 105,347
CURRENT ASSETS
Inventories 15,788 3,383
Trade and other receivables 93,779 10,151
Cash and cash equivalents 41,823 1,850
TOTAL CURRENT ASSETS 151,390 15,384
TOTAL ASSETS 770,896 120,731
EQUITY AND LIABILITIES
EQUITY
Share capital 24,508 24,234
Share issue 143 32
Share premium fund 185,836 1,607
Fair value reserve 117 117
Hedging fund 3,301
Translation differences 2,818 114
Retained earnings 75,521 28,027
TOTAL EQUITY 292,244 54,131
RESERVES
Reserves 348
NON-CURRENT LIABILITIES
Deferred income tax liabilities 51,829 3,862
Interest bearing liabilities 306,968 37,668
CURRENT LIABILITIES
Trade and other payables 79,008 12,331
Interest bearing liabilities 40,499 12,739
TOTAL LIABILITIES 478,304 66,600
TOTAL EQUITY AND LIABILITIES 770,896 120,731
CONSOLIDATED INCOME STATEMENT
1 January - 31 December 2006 (EUR 1,000)
10-12/06 10-12/05 1-12/06 1-12/05
SALES 116,588 18,896 402,425 76,982
Other operating income 2,142 297 3,507 910
Change in inventories in finished
goods and in work in progress -954 -411 -184 -499
Production for own use 2,950 776 7,754 6,230
Materials and services -20,479 -2,209 -74,256 -16,995
Employee benefits -22,924 -5,459 -83,773 -21,136
Depreciation -13,581 -3,050 -51,060 -11,228
Amortisation on intangible assets
resulting from acquisitions -1,092 -4,265
Other operating expenses -40,829 -4,645 -131,579 -16,305
OPERATING PROFIT 21,821 4,195 68,569 17,958
% of sales 18.7 22.2 17.0 23.3
Finance costs (net) -2,107 -488 -11,984 -1,709
PROFIT BEFORE TAXES 19,714 3,707 56,585 16,249
% of sales 16.9 19.6 14.1 21.1
Income taxes -4,623 -1,195 -14,641 -4,322
PROFIT FOR THE PERIOD 15,091 2,512 41,944 11,927
% of sales 12.9 13.3 10.4 15.5
Earnings per share, undiluted, EUR 0.50 0.17 1.39 0.83
Earnings per share, diluted, EUR 0.49 0.17 1.36 0.81
SUMMARISED STATEMENT OF CHANGES IN GROUP'S EQUITY (EUR 1,000)
Equity Equity
31.12.06 31.12.05
At period-start 54,131 45,485
Translation difference 2,706 173
Profit for the period 41,944 11,927
Hedging fund 3,301
Dividend -7,513 -3,580
Registered share issue 197,532 94
Unregistered share issue 143 32
At period-end 292,244 54,131
CONSOLIDATED CASH FLOW STATEMENT (EUR 1,000)
1-12/06 1-12/05
CASH FLOW FROM OPERATING ACTIVITIES 103,880 26,745
CASH FLOW FROM INVESTING ACTIVITIES -96,254 -26,776
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from issue of share capital 787 126
Dividends paid -7,513 -3,580
Increase(+)/decrease(-) in liabilities -17,066 4,587
Increase(+)/decrease(-) in lease liabilities 34,610 172
CASH FLOW FROM FINANCING ACTIVITIES, TOTAL 10,818 1,305
NET CHANGE IN CASH AND CASH EQUIVALENTS 18,444 1,274
CASH AND CASH EQUIVALENTS AT PERIOD-START 1,850 576
Translation difference 302
CASH AND CASH EQUIVALENTS FROM ACQUISITIONS 21,227
CASH AND CASH EQUIVALENTS AT PERIOD-END 41,823 1,850
CONTINGENT LIABILITIES (EUR 1,000)
31.12.06 31.12.05
On own behalf
Mortgages on real estates 5,663 5,663
Mortgages on companies 77,487 10,957
Pledges 107,212 20,752
Other contingent liabilities 9,795 138,276
DERIVATIVE FINANCIAL INSTRUMENTS (EUR 1,000)
31.12.06 31.12.05
NV = nominal value NV FV NV FV
FV = fair value
Interest rate derivatives
Swaps 152,803+4,461 17,263 -80
Options
Bought 10,000 +14
Written 10,000 -11
Foreign exchange contracts
Forwards 19,911 +113
KEY FIGURES
1-12/06 1-12/05
Value of outstanding orders for modular space EUR 1,00081,959 31,082
Value of orders for modular space rental EUR 1,000 74,507 24,198
Value of orders for sale of modular space, EUR 1,000 7,452 6,884
Gross capital expenditure, EUR 1,000 111,864 29,601
% sales 27.8 38.5
Average personnel 1,828 569
Earnings per share, undiluted, EUR 1.39 0.83
Earnings per share, diluted 1) EUR 1.36 0.81
Shareholders' equity per share 2), EUR 9.66 3.77
Equity ratio, % 38.2 49.0
Net interest-bearing liabilities, EUR 1,000 305,643 48,556
Gearing, % 104.6 89.7
Issue-adjusted average number of shares 30,121,137 15,030,994 3)
Issue-adjusted number of
shares at the period-end 30,332,793 13,302,994 4)
Issue-adjusted average number of
Series A shares at the period-end 1,728,000
Number of shares adjusted
by the dilution effect of share options 30,811,395 15,390,862
1) Adjusted by the dilution effect of shares entitled by warrants
2) Number of shares registered at the end of the period
3) A and B Series shares
4) B Series shares
INFORMATION BY BUSINESS SEGMENT (EUR 1,000)
The Group's primary segments are equipment rental and modular space. Its
secondary segments are based on the following geographical areas, which are
Finland, Sweden, Western Europe and Other Europe. Sales from the equipment
rental business are also presented by geographic segments.
Sales by business segment (EUR 1,000)
10-12/06 10-12/05 1-12/06 1-12/05
Equipment rental
- Finland 15,772 11,481 60,227 46,452
- Sweden 51,644 174,721
- Western Europe 18,592 66,319
- Other Europe 11,672 1,915 38,446 5,790
Equipment rental, total 97,681 13,396 339,713 52,242
- between the segments -80 -167 -421 -167
Modular space 19,152 7,276 65,513 27,093
- between the segments -166 -1,609 -2,382 -2,186
Eliminations -246 -1,776 -2,803 -2,353
Sales, total 116,588 18,896 402,425 76,982
Operating profit (EBITA) before amortisation on intangible assets resulting from
acquisitions by business segment (EUR 1,000)
10-12/06 10-12/05 1-12/06 1-12/05
Equipment rental
- Finland 1,943 1,680 10,370 9,193
- Sweden 11,958 35,875
- Western Europe 3,266 8,447
- Other Europe 4,583 646 11,991 2,037
Equipment rental, total 21,751 2,326 66,683 11,230
Modular space 4,743 2,013 14,949 7,328
Non-allocated Group activities -3,397 -145 -8,614 -600
Eliminations -183 -183
Operating profit, total 22,913 4,194 72,834 17,958
Non-allocated Group activities include costs of group management and group
finance and control as well as other group-level activities. However, in
applying the reconfirmed principles, the year 2005 quarterly segment information
has been restated accordingly.
EBITA-% by business segment
10-12/06 10-12/05 1-12/06 1-12/05
Equipment rental
- Finland 12.3 14.6 17.2 19.8
- Sweden 23.2 20.5
- Western Europe 17.6 12.7
- Other Europe 39.3 33.7 31.2 35.2
Equipment rental, total 22.3 17.4 19.6 21.5
Modular space 24.8 27.7 22.8 27.0
Non-allocated Group activities
EBITA-%, total 19.7 22.2 18.1 23.3
Sales by geographical segment (EUR 1,000); sales generated by both the equipment
rental business and the modular space business are included in the geographical
segments.
10-12/06 10-12/05 1-12/06 1-12/05
Finland 24,911 16,981 91,671 71,192
Sweden 59,275 206,094
Western Europe 23,076 70,803
Other Europe 11,677 1,915 38,451 5,790
Eliminations -2,351 -4,595
Sales, total 116,588 18,896 402,425 76,982
RELATED PARTY TRANSACTIONS
During the reporting period, the Group purchased machines and equipment and
related services from Pon Holdings B.V.'s subsidiaries for a total of EUR 2,304
thousand.
FINANCIAL INFORMATION SCHEDULE FOR 2007
Report on Financial Statements 2006 Wednesday, 28 February 2007
Three-month interim report Tuesday, 22 May 2007
Six-month interim report Thursday, 16 August 2007
Nine-month interim report Thursday, 15 November 2007
The Annual General Meeting of Cramo Plc will be held on Wednesday, 18 April
2007.
Cramo will hold a press conference for analysts and the media at the restaurant
Palace, Eteläranta 10,10th floor Helsinki, on Wednesday 28 February 2006,
starting at 11.00.
In addition, Cramo will hold a teleconference in English for analysts, investors
and the media on 28 February, starting at 3.00 p.m. Before the teleconference
begins, those wishing to attend it should call on +358 9 8248 4975. The password
is Cramo.
The data in this report on Financial Statements are based on unaudited figures.
CRAMO PLC
Vesa Koivula
President and CEO
Tel.: +358 10 66110, +358 40 5105710
Martti Ala-Härkönen
CFO
Tel.: +358 10 66110, +358 40 7376633
DISCLAIMER
This report includes certain forward-looking statements based on management's
expectations at the time they are made. Therefore, they involve risks and
uncertainties and are subject to change due to changes in general economic and
industry conditions.
DISTRIBUTION
Helsinki Stock Exchange
Major media
UNAUDITED FINANCIAL PRO FORMA INFORMATION
INCOME STATEMENT (EUR 1,000)
10-12/06 10-12/05 1-12/06 1-12/05
Actual Pro forma Actual Pro forma
SALES 116,588 92,418 402,425 334,302
Other operating income 2,142 4,120 3,507 5,252
Change in inventories -954 -502 -184 -861
Production for own use 2,950 776 7,754 6,230
Materials and services -20,479 -16,079 -74,256 -66,137
Employee benefits -22,924 -19,647 -83,773 -74,026
Amortisation on intangible assets
resulting from acquisitions -1,092 -1,058 -4,265 -4,230
Depreciation -13,581 -11,839 -51,060 -45,416
Other operating expenses -40,829 -40,889 -131,579 -118,593
OPERATING PROFIT 21,821 7,300 68,569 36,521
% of sales 18.7 7.9 17.0 10.9
Finance costs (net) -2,107 -2,360 -11,984 -10,954
PROFIT BEFORE TAX 19,714 4,940 56,585 25,567
% of sales 16.9 5.3 14.1 7.6
Income taxes -4,623 -1,494 -14,641 -6,888
PROFIT FOR THE PERIOD 15,091 3,445 41,944 18,679
% of sales 12.9 3.7 10.4 5.6
Pro forma operating profit for 2005 includes approximately EUR 4.9 million in
one-off expenses, related to the corporate acquisition of Cramo Holding B.V.
Most of the expenses are allocated at the latter part of 2005.
SUPPLEMENTARY PRO FORMA KEY FIGURES
10-12/06 10-12/05 1-12/06 1-12/06 1-12/05
Actual Pro forma Actual Pro forma Pro forma
Gross investment on non-current
assets, EUR 1,000 27,655 27,102 111,864 92,172
% of sales 23.7 29.3 26.5 27.6
Average personnel 1,828 1,646
Return on investment (ROI), % 11.7
Return on shareholder's equity, % 15.5
Sales by business segment (EUR 1,000)
10-12/06 10-12/05 1-12/06 1-12/05
Actual Pro forma Actual Pro forma
Equipment rental
- Finland 15,772 14,546 60,227 57,200
- Sweden 51,644 38,591 174,721 145,609
- Western Europe 18,592 15,261 66,319 51,435
- Other Europe 11,672 7,431 38,446 23,044
Equipment rental, total 97,681 75,829 339,713 277,287
- between the segments -80 -18 -421 -367
Modular space 19,152 16,635 65,513 58,300
- between the segments -166 -29 -2,382 -919
Eliminations -246 -47 -2,803 -1,286
Sales, total 116,588 92,417 402,425 334,302
Operating profit (EBITA) before amortisation on intangible assets resulting from
acquisitions by business segment (EUR 1,000)
10-12/06 10-12/05 1-12/06 1-12/05
Actual Pro forma Actual Pro forma
Equipment rental
- Finland 1,943 2,135 10,370 9,870
- Sweden 11,958 6,008 35,875 19,985
- Western Europe 3,266 1,130 8,447 1,490
- Other Europe 4,583 1,972 11,991 6,070
Equipment rental, total 21,751 11,245 66,683 37,415
Modular space 4,743 3,586 14,949 13,074
Non-allocated Group activities -3,397 -6,472 -8,614 -9,738
Eliminations -183 -183
Operating profit, total 22,913 8,358 72,834 40,751
Non-allocated Group activities include costs of group management and group
finance and control as well as other group-level activities. However, in
applying the reconfirmed principles, the year 2005 quarterly segment information
has been restated accordingly.
EBITA-% by business segment
10-12/06 10-12/05 1-12/06 1-12/05
Actual Pro forma Actual Pro forma
Equipment rental
- Finland 12.3 14.7 17.2 17.3
- Sweden 23.2 15.6 20.5 13.7
- Western Europe 17.6 7.4 12.7 2.9
- Other Europe 39.3 26.5 31.2 26.3
Equipment rental, total 22.3 14.8 19.6 13.5
Modular space 24.8 21.6 22.8 22.4
Non-allocated Group activities
EBITA-%, total 19.7 9.0 18.1 12.2
FINANCIAL PERFORMANCE BY QUARTERS
10-12/06 7-9/06 4-6/06 1-3/06 1-12/06 1-12/05
Actual Actual Actual Actual Actual Pro forma
Sales 116,588 105,500 96,746 83,591 402,425 334,302
EBITA 22,914 25,007 15,078 9,836 72,834 40,751
EBITA-% 19.7 23.7 15.6 11.8 18.1 12.2
CRAMO FINANCIAL STATEMENTS BULLETIN 1 JANUARY-31 DECEMBER 2006 - CRAMO’S STRONG PROFIT PERFORMANCE CONTINUED THROUGHOUT THE YEAR
| Source: Cramo Oyj