Cramo Plc Financial statements bulletin 11 February 2009, at 9.00 am Finnish
time (GMT+2)
CRAMO FINANCIAL STATEMENTS FOR JANUARY-DECEMBER 2008
GOOD PERFORMANCE IN A CHALLENGING OPERATING ENVIRONMENT
-Consolidated sales EUR 579.8 (496.4) million, up 16.8 %; in local currencies
the growth is 19.5 %
-EBITA EUR 102.2 (96.0) million, up 6.5 %; EBITA margin 17.6 %
-EBIT EUR 91.8 (91,8) million
-Undiluted earnings per share EUR 1.59 (1.88); and diluted earnings per share
EUR 1.59 (1.87)
-Systematic adjustments in a changing operating environment
-Weakening market and restructuring costs hit profits in the last quarter
-The Board proposes a dividend of EUR 0.40 (0.65) per share
-In 2009, consolidated sales and EBITA margin will not reach the levels
recorded in 2008. However, the Group's cash flow after investments is expected
to stay positive
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| KEY FIGURES AND RATIOS | 10-12/08 | 10-12/07 | 1-12/08 | 1-12/07 |
| (EUR 1,000) | | | | |
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| Sales, EUR 1,000 | 143,316 | 143,773 | 579,802 | 496,428 |
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| Operating profit before | 19,843 | 26,144 | 102,153 | 95,963 |
| amortisation on intangible | | | | |
| assets resulting from | | | | |
| acquisitions (EBITA) | | | | |
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| Operating profit (EBIT) | 14,578 | 25,131 | 91,804 | 91,844 |
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| Profit before tax (EBT) | 4,749 | 20,532 | 63,675 | 75,808 |
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| Profit for the period | 6,732 | 14,679 | 48,650 | 57,485 |
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| Earnings per share (EPS) | 0.35 | 0.50 | 1.84 | 1.96 |
| before amortisation on | | | | |
| intangible assets resulting | | | | |
| from acquisitions, diluted, | | | | |
| EUR | | | | |
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| Earnings per share (EPS), | 0.22 | 0.48 | 1.59 | 1.88 |
| undiluted, EUR | | | | |
--------------------------------------------------------------------------------
| Earnings per share (EPS), | 0.22 | 0.48 | 1.59 | 1.87 |
| diluted, EUR | | | | |
--------------------------------------------------------------------------------
| Equity per share, EUR | | | 10.42 | 10.88 |
--------------------------------------------------------------------------------
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| Return on equity, rolling | | | 14.9 | 18.4 |
| 12-month ROE, % | | | | |
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| Equity ratio, % | | | 32.4 | 37.3 |
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| Gearing, % | | | 149.3 | 109.4 |
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| Net interest-bearing | | | 477,124 | 364,985 |
| liabilities, EUR 1,000 | | | | |
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| Gross capital expenditure, | | | 201,192 | 175,494 |
| EUR 1,000 | | | | |
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| % of sales | | | 34.7 | 35.4 |
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| Average personnel | | | 2,617 | 2,070 |
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SUMMARY OF FINANCIAL PERFORMANCE IN 2008
Cramo Group's consolidated sales continued to be strong in 2008. Sales increased
in all market areas and totalled EUR 579.8 (496.4) million. Sales showed an
increase of 16.8 per cent over the previous year. Sales growth slowed at the end
of the year due to the strong drop in value of several European currencies,
particularly the Swedish krona, in relation to the euro. Sales growth in local
currencies was 19.5 per cent, which was in line with the Group targets. In the
last quarter sales growth was -0.3 per cent, and 6.7 per cent in local
currencies. Cramo estimates that it has strengthened its market position in all
market areas in 2008.
EBITA in 2008 was EUR 102.2 (96.0) million, representing a 6.5 per cent
growth.The EBITA margin was 17.6 (19.3) per cent of consolidated sales. EBITA
for the last quarter amounted to EUR 19.8 (26.1) million, representing 13.8
(18.2) per cent of sales. The weak market situation, the Group's restructuring
expenses and credit losses and credit loss provisions weakened the profit in the
last quarter. Restructuring expenses totalled EUR 1.6 million and credit losses
and credit provisions EUR 1.9 million in the last quarter. Profit for the last
quarter includes EUR 4.1 million in income from the acquisition of a minority
share in Cramo Rentakran. Furthermore, the last quarter includes a EUR 3.4
million impairment on the intangible assets included in the Cramo Rentakran
acquisition. The Group's cash flow after investments turned positive in Q4 2008
and was EUR 13.2 million.
The operating environment changed dramatically during 2008. Demand continued to
be good early in the year in almost all markets, and the use of rental services
continued to increase. The market slowdown began in the Baltic countries in
early 2008 and spread to other market areas in the autumn. Systematic
adjustments to the changed market situation continued throughout the year,
protecting profits.
Sales in the equipment rental business grew strongly in Central and Eastern
Europe, 32.8 per cent, and 30.4 per cent in Western Europe. Equipment rental in
Finland and Sweden and the modular space business achieved growth that was in
line with the targets. The profitability for modular space improved over the
previous year and remained at a very good level throughout the year. The modular
space business brings stability in Cramo Group's operations over the business
cycle. Profitability in equipment rental fell in comparison to the previous year
as a result of a general drop in demand. In the beginning of the year, the Group
added depots in Western Europe as well as in Central and Eastern Europe. The new
units had a dilutive effect on Group earnings.
Earnings per share in 2008 were EUR 1.59 (1.88), representing a decline of 15.6
per cent on the previous year. Diluted earnings per share were EUR 1.59 (1.87),
representing a decline of 15.1 per cent. The Board proposes a dividend of EUR
0.40 (0.65) per share to the Annual General Meeting of Shareholders.
OUTLOOK FOR 2009
The economic operating environment is expected to weaken in 2009. The Group
expects the amount of construction to fall in all Nordic countries and the
Baltic countries. Construction is expected to continue to increase in Poland, in
the Czech Republic and in Slovakia, although at a lower level. The outlook for
new construction has also weakened in Russia, but the growing popularity of
equipment rental will support demand for rental services. Continued growth is
anticipated in the demand for modular space. This demand continues to be
supported by relocations, demographic changes and by the need for increasingly
flexible space solutions in industry and public administration.
Cramo operates in three main business sectors: construction equipment rental,
equipment rental for the other industry and modular space rental. All of these
business areas fall into the categories of public and private. The construction
industry consists not only of residential construction, but also of
non-residential construction, infrastructure construction and renovation. In
spite of a general decline in construction, there are pockets of growth which
Cramo intends to utilise in full.
Public spending especially in infrastructure construction is expected to grow
during the year. The same is expected in renovation. With rental contracts
averaging five years, the modular space business has a stabile earnings pattern.
As a result of investments made in recent years, the Group has a modern and
competitive rental fleet and no investments are needed in 2009. Rather than
investing in new equipment, Cramo will focus on optimising the use of its fleet
on a Group-wide basis in 2009. Furthermore, the Group will continue its
systematic cost adjustment measures to protect its profitability and its cash
flow from operating activities in all situations. The cost reduction measures
are expected to bring cost savings of at least EUR 25 million in 2009.
Many European currencies weakened in comparison to the euro at the end of 2008.
If currency rates remain at the same level as in the beginning of 2009, this
will have a negative impact on the Group's figures measured in Euros in relation
to the comparison figures for 2008.
In 2009, consolidated sales and EBITA margin will not reach the levels recorded
in 2008. However, the Group's cash flow after investments is expected to stay
positive.
SALES AND PROFIT
Cramo 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, Estonia, Latvia, Lithuania, Poland, the Czech Republic, Slovakia and
Russia. Cramo estimates that it has strengthened its position in all market
areas in 2008.
Cramo Group's consolidated sales continued to be strong in 2008. Sales increased
in all market areas and totalled EUR 579.8 (496.4) million. Sales showed an
increase of 16.8 per cent over the previous year. Growth in sales slowed at the
end of the year due to the weakening of several European currencies,
particularly the Swedish krona, in relation to the euro. Sales growth in local
currencies was 19.5 per cent, which was in line with the Group targets. Sales in
2007, the year of comparison, included the Dutch operations, which were divested
on 1 April 2007. Sales growth without the Dutch business was 17.5 per cent.
Organic growth, which includes outsourcing agreements, was 12.4 per cent. Sales
growth continued to be strongest in Central and Eastern Europe. Sales in the
last quarter were EUR 143.3 (143.8) million. Growth in sales in the last quarter
was -0.3 per cent, and 6.7 per cent in local currencies.
EBITA in 2008 was EUR 102.2 (96) million, representing 6.5 per cent growth over
the previous year. EBITA was 17.6 (19.3) per cent of sales, which was slightly
below the Group target. EBITA for the last quarter amounted to EUR 19.8 (26.1)
million, representing 13.8 (18.2) per cent of sales. The weak market situation,
the Group's reorganisation expenses and credit losses and credit loss provisions
weakened the profit in the last quarter. Reorganisation expenses totalled EUR
1.6 million and credit losses and credit provisions EUR 1.9 million in the last
quarter. Profit in the last quarter includes EUR 4.1 million of income from the
acquisition of a minority share in Cramo Rentakran, which has not been allocated
to the Central and Eastern Europe business segment. Furthermore, the last
quarter includes a EUR 3.4 million impairment on the intangible assets included
in the Cramo Rentakran acquisition. The systematic adjustment to the changed
market situation that has continued throughout the year kept the 2008 profit
nearly in line with the targets.
Consolidated operating profit (EBIT) in 2008 was EUR 91.8 (91.8) million,
representing 15.8 (18.5) per cent of sales. Profit before taxes was EUR 63.7
(75.8) million and profit for the year EUR 48.7 (57.5) million. Earnings per
share in 2008 were EUR 1.59 (1.88), representing a decline of 15.6 per cent on
the previous year. Diluted earnings per share were EUR 1.59 (1.87), representing
a decline of 15.1 per cent.
The corporate tax rate was lowered in Sweden in December 2008 from 28 per cent
to 26.3 per cent, and earlier in 2008 in Russia from 24 per cent to 20 per cent
and in the Czech Republic from 21 per cent to 20 per cent. Because of the change
in the corporate tax rates, the Group's deferred tax liabilities in the balance
sheet diminished clearly and the change in deferred taxes in the profit and loss
account was EUR 3.2 million positive in the fourth quarter. Cramo Group has
SEK-based deferred tax liabilities in particular, being the result of the Cramo
acquisition in 2006, fleet-related depreciation differences and SEK-based
financial leasing. As a result of the changes, the Group's taxes were positive
in the fourth quarter and the effective tax rate was 23.6 per cent for the full
year 2008.
Foreign exchange differences increased the net finance cost by EUR 1.6 million
and interest rate differences by EUR 0.8 million in the last quarter. Credit
losses and credit provisions in 2008 totalled EUR 4.2 (2.2) million, or 0.7
(0.4) per cent of sales. Expense entries associated with options totalled EUR
2.8 million in 2008.
The equipment rental business had sales of EUR 505.3 (425.9) million in 2008.
Sales grew most strongly in Central and Eastern Europe, 32.8 per cent, and 30.4
per cent in Western Europe. Growth in line with the targets was also achieved in
Finland and Sweden. EBITA for the equipment rental business amounted to EUR 78.5
(86.0) million, representing 15.5 (20.2) per cent of sales. Profitability in
equipment rental fell in comparison to the previous year, partly as a result of
a general drop in demand and the strong expansion of activities in Western
Europe and Central and Eastern Europe at the beginning of the year.
The modular space business recorded sales of EUR 79.8 (76.7) million, an
increase of 4.0 per cent. EBITA for modular space amounted to EUR 23.9 (19.4)
million, representing 29.9 (25.2) per cent of sales, up 23.2 per cent over the
previous year. Profitability remained very good throughout the year. The modular
space business brings stability in Cramo Group's operations over the business
cycle.
Group profit in 2008 includes EUR 10.1 million of other income that has not been
allocated to the business segments, including the income related to the
acquisition of a minority share in Cramo Rentakran and EUR 6.0 million in
capital gains from the sale of Finnish properties. Profit for the comparison
year of 2007 includes EUR 4.0 million in capital gains from the divestment of
the Dutch operations.
Return on investment stood at 12.0 (13.7) per cent and return on equity at 14.9
(18.4) per cent.
CAPITAL EXPENDITURE AND DEPRECIATION/AMORTISATION
Gross capital expenditure of EUR 201.2 (175.5) million in the period was mainly
allocated to the purchase of rental equipment. Investment in rental equipment
was stronger than earlier in Central Europe and Russia and in the modular space
business. Company acquisitions carried out during the period under review are
not included in gross capital expenditure.
Reported depreciation on property, plant and equipment and software totalled EUR
85.4 (62.4) million. Amortisation on intangible assets resulting from
acquisitions totalled EUR 10.4 (4.1) million. At the end of the year, goodwill
totalled EUR 147.9 (152.4) million.
The Group will downsize its investments considerably in 2009 and, instead of
investing in new equipment, focus on optimising the use of its existing fleet
throughout the Group.
FINANCIAL POSITION AND BALANCE SHEET
The Group showed a positive net cash flow of EUR 121.0 (138.7) million from
operating activities. Cash flow from investments was EUR 216.6 to the negative
(negative EUR 175.2) million, of which EUR 43.3 million was related to
acquisitions. Cash flow from financing activities amounted to EUR 87.5 (13.7)
million. At the end of the period, cash and cash equivalents amounted to EUR 8.1
(18.5) million, with the net change coming to negative EUR 8.1 (negative EUR
22.8) million.
The Group's cash flow after investment turned positive in Q4 2008, and was EUR
13.2 million. The Group expects cash flow after investments to be positive in
2009.
At the end of the period, Cramo Group's gross interest-bearing liabilities
totalled EUR 485.2 (383.5) million. The Group has used interest rate swaps of
approximately EUR 142.3 million to hedge its non-current loans. Hedge accounting
is applied to EUR 122.3 million of the non-current loans. Current loans include
a total of EUR 125 million of loan withdrawals as current loans from non-current
credit limits. Cramo Group's unused credit limits (excluding leasing limits)
totalled EUR 100 million on 31 December 2008, of which non-current credit limits
totalled EUR 70 million and current credit limits EUR 30 million.
Cramo established the Cramo Finance NV financing company in Belgium at the end
of November. The financing company will help Cramo to increase its financing
opportunities in international markets and increase loan management efficiency
inside the Group.
On 31 December 2008, Cramo Group's net interest-bearing liabilities totalled EUR
477.1 (365.0) million, with gearing at 149.3 (109.4) per cent. The growth in
gearing resulted from the Group's capital expenditure and acquisitions in the
first half of 2008. The Group expects a decrease in net interest-bearing
liabilities in 2009.
The balance sheet total on 31 December 2008 was EUR 997.6 (895.0) million and
the equity ratio was 32.4 (37.3) per cent. Because of the weakening of several
European currencies against the euro, the Group's equity ratio and gearing did
not improve in the last quarter.
Property, plant and equipment amounted to EUR 585.6 (487.0) million, with
equipment rental representing EUR 448.1 million, or 76.5 per cent, and modular
space representing EUR 137.5 million, or 23.5 per cent. Off-balance sheet
operating lease liabilities totalled EUR 68.9 (54.2) million on 31 December
2008.
Net working capital on 31 December 2008 amounted to EUR 33.0 (28.0) million,
with equipment rental representing EUR 27.3 (24.6) million, or 82.7 per cent,
and modular space representing EUR 5.7 (3.4) million, or 17.3 per cent.
Inventories amounted to EUR 15.9 (16.9) million on 31 December 2008, with
modular space representing EUR 8.3 million, or 52.0 per cent.
GROUP STRUCTURE
At the end of the period under review, the operating companies of Cramo Group
consisted of the parent company Cramo Plc and its wholly-owned subsidiaries in
Finland, Sweden, Norway, Denmark, Estonia, Latvia, Lithuania, Poland and the
Czech Republic, as well as a financing company in Belgium, Cramo Instant Oy's
subsidiaries in Finland and Suomen Tähtivuokraus Oy's subsidiaries in Poland and
St Petersburg, Russia. Cramo Plc also has a 100 per cent holding in Cramo JV Oy,
which has a subsidiary, ZAO Cramo Rentakran, in Russia. The Slovakian business
unit is part of the Czech company.
Equipment rental services were provided through a network of 303 (268) depots.
Cramo Instant Oy in Finland and Cramo Instant AB in Sweden, Norway and Denmark
are engaged in the modular space business.
BUSINESS DEVELOPMENT AND ACQUISITIONS AND DIVESTMENTS
Cramo's key objective in 2008 was to fuel profitable international growth and
strengthen its position in all market areas. In the latter half of the year, the
focus shifted to reinforcing profitability and positive cash flow. Contingency
plans to adjust to the changed market situation were implemented in various
countries starting in the second quarter. Cramo's contingency plans include
measures to improve sales and customer service and to cut costs. Adjustments in
line with the contingency plans will continue during 2009.
In order to free up capital for its core activities, Cramo Plc sold nine Finnish
properties to Aberdeen Property Fund Finland I Ky and companies owned by
Aberdeen in April. Cramo also sold seven other properties in Finland in the
first half of the year. The total capital gain from the property transactions is
EUR 6.0 million, which is recognised under other operating income.
Equipment rental services were expanded, particularly in Central and Eastern
Europe. In the future, an increasing share of the Group's business will come
from developing markets. Modular space rental operations were expanded,
particularly in Norway and Denmark.
Measures to develop internal processes and policies and shared IT systems
continued during the year. The Group's business intelligence system was taken
into use in 2008, and a new ERP system will be implemented in 2009.
The European Rental Association (ERA) presented Cramo with its “Rental Company
of the Year” award for the successful and quick conversion of two companies into
one of Europe's leading players in the industry.
Cramo's vision is to be the preferred rental solutions provider in the eyes of
customers. Cramo aims to be one of the two largest industry players in every
market in which it operates, and to be one of the most profitable companies in
the industry.
Acquisitions and divestments
In December, in accordance with an agreement with ZAO Rentakran, Cramo acquired
Cramo Rentakran's entire 25% minority share of the joint venture in Moscow.
Following this transaction, Cramo has a total of eight depots in Russia, located
in St. Petersburg, Moscow, Jekaterinburg and Kaliningrad. Cramo will now focus
on implementing the full-service Cramo concept in all its Russian units.
During the year, Cramo utilised company and business acquisitions to expand in
the Czech Republic, Latvia, Sweden, Finland and Norway and also concluded
significant outsourcing agreements in Norway and Denmark.
An agreement was signed with Techniline s.r.o in March concerning the
acquisition of the company's entire share capital. Techniline is the leading
equipment rental services company in the Czech Republic, with sales of more than
EUR 8.0 million in 2007 and operations also in Slovakia. Techniline was
integrated into the Group on 1 April 2008. Following the acquisition, Cramo
became the market leader in the growing, well-developed equipment rental market
in the Czech Republic.
In March, Cramo also signed an agreement to acquire the entire share capital of
SIA Tapeks Noma in Latvia. Tapeks Group is the leading Latvian wholesale
supplier of general construction equipment and building machinery. Its
subsidiary, Tapeks Noma, has provided equipment rental services in 16 depots,
and its sales in 2007 amounted to approximately EUR 4 million. Tapeks Noma was
integrated into the Cramo Group on 1 May 2008. Following the acquisition, Cramo
became the second-largest rental services provider in Latvia.
In March, Cramo Sverige AB, the Swedish wholly-owned subsidiary of Cramo Plc,
acquired the entire share capital of Kranab, an access equipment rental
company.Operating in the Stockholm area, Kranab recorded sales of EUR 7.2
million in the financial year ending on 30 April 2007. Cramo Sverige AB also
acquired the entire share capital of Hyrmaskiner i Bollnäs AB, an equipment
rental company, on 1 April 2008. Its annual sales total approximately EUR 1.1
million. Kranab and Hyrmaskiner i Bollnäs were integrated into the Cramo Group
on 1 April 2008.
Cramo Finland Oy, Cramo's Finnish subsidiary, acquired the entire share capital
of Pohjolan Teline Oy, which operates in the Kemi-Tornio area. The company,
which was integrated into Cramo Group on 1 April 2008, has annual sales of
approximately EUR 1 million. The acquisition strengthened Cramo's market
position in northern Finland, particularly among industrial enterprises.
Cramo Plc's Norwegian subsidiary, Cramo AS, acquired the rental business of
Kranenentreprenören AS in May. Its annual sales total approximately EUR 1.7
million. The operations were integrated into the Group on 14 May 2008.
In May, Cramo Sverige AB acquired the business of GMM Hyrservice i Lund, which
was integrated into the Group on 1 June 2008. The company operates in the
southern part of Sweden and has sales totalling approximately EUR 1.5 million.
Cramo AS signed an outsourcing agreement on 24 June 2008, which transferred the
rental operations of JM Byggholt AS, a Norwegian company in the JM construction
corporation from Sweden, to Cramo. The agreement, which took effect in August,
encompasses all rental assets and a staff of 12. The deal includes a seven-year
co-operation agreement, which makes Cramo the main rental equipment supplier to
JM Byggholt. During the first year, the agreement is estimated to bring EUR 2.2
million additional sales to Cramo AS.
In Denmark, Cramo signed an outsourcing agreement with MSE A/S, under which
Cramo takes over the existing machine fleet of MSE A/S. This makes Cramo the
main equipment rental supplier of MSE A/S for a minimum period of five years.
The impact of the agreement signed in August on Cramo A/S' sales is estimated at
EUR 0.6 million.
HUMAN RESOURCES
During the period under review, Group staff averaged 2.617 (2.070). The
equipment rental business had an average of 2.376 (1.832) employees and the
modular space business 241 (238) employees.
In particular, the number of staff increased as a result of company, business
and fleet acquisitions, which brought over 200 new employees to the Group.
The geographical distribution of personnel is as follows: Finland 30.4 per cent,
Sweden 27.3 per cent, Western Europe 13.1 per cent and Central and Eastern
Europe 29.2 per cent.
As part of its normal operations, the Group continuously monitors and adjusts
its costs, including human resources costs. Due to the adjustment measures made
necessary by the weakened market situation, the number of staff was reduced by
about 270 in 2008 through dismissals and lay-offs of permanent staff. This
figure includes employment relationships that have already ended and those that
were agreed upon in the statutory negotiations ending by 31 December 2008.
Reductions are likely to continue.
In 2008, human resources development and administration focused on standardising
policies in areas such as recruiting, induction and human resource planning.
Human resource administration was strengthened with the aim of developing the
staff to better meet business and local needs. Management practices were
standardised, and management took part in country-specific coaching programmes
in all Cramo operating areas. In particular, the training for upper management
and key personnel in Central and Eastern Europe supports growth in new markets.
Staff training focused on developing sales skills. The expansion of the Cramo
School from Sweden to all market areas began in Latvia. Cramo School focuses on
customer service and equipment use and safety.
In 2009, Cramo will continue to standardise functions and provide management
coaching through the Cramo Academy, which focuses on management and leadership,
and by supporting its staff in completing competence-based qualifications.
GROUP MANAGEMENT
At the end of the year, Cramo Group's Executive Committee consisted of President
and CEO Vesa Koivula, Deputy CEO Göran Carlson and CFO Martti Ala-Härkönen. In
addition, the Group Management team included Senior Vice Presidents Tatu Hauhio
(Finland), Erik Bengtsson (Sweden), Jarmo Laasanen (Central and Eastern Europe)
and Ossi Alastalo (Modular Space) as well as Vice President, Marketing and
Communications Anders Collman, Vice President, Fleet Management Mats Stenholm,
CIO Eva Harström, Vice President, Human Resource Development Pirjo Saarni and
Vice President, Legal Affairs Mika Puittinen. Effective 1 January 2009, Martin
Holmgren took over as Vice President, Fleet Management. His previous position
was Product Area Manager in Cramo Group's Fleet Management unit. His predecessor
Mats Stenholm will continue to serve as a Senior Advisor to Group management
until his retirement at the end of 2009.
The Group's Deputy CEO Göran Carlson was appointed responsible of Business
Development and Strategic Planning on 1 January 2008. Göran Carlson continues to
serve as Deputy CEO and reports to CEO Vesa Koivula. At the same time, the
Senior Vice President, Scandinavia, who previously reported to Göran Carlson,
will now report to Vesa Koivula. Erik Bengtsson, who earlier served as Region
Manager, East at Cramo Sverige AB, took over as the new Senior Vice President,
Sweden on 15 June 2008, after Magnus Rosén, who was responsible for Scandinavian
functions announced in January that he was resigning to join another company.
Simultaneously, responsibility for the Scandinavian business was divided between
the country managers, as a result of which the managing directors of the Danish
and Norwegian companies began reporting to President and CEO Vesa Koivula.
Pirjo Saarni, M.Sc. Psychology, was appointed Vice President, Human Resources
Development on 7 April 2008 and Mika Puittinen Vice President, Legal Affairs on
17 November 2008. Saarni joined Cramo from the position of HR Manager at Vahanen
Oy while Puittinen's earlier position was Vice President, Legal Affairs at
Perlos Oyj.
PERFORMANCE BY BUSINESS SEGMENT
Cramo Plc's business during the year consisted of the two following business
segments: equipment rental and modular space. The equipment rental business
segment is also reported upon by geographic segment as follows: Finland, Sweden,
Western Europe (Norway and Denmark) as well as Central and Eastern Europe
(Estonia, Latvia, Lithuania, Poland, the Czech Republic, Slovakia and Russia).
In the comparison year 2007, Western Europe included the Netherlands until 31
March and the Central and Eastern Europe segment was known as Other Europe.
As of the beginning of 2009, Cramo Group only reports by geographic segment. The
modular space business will no longer be reported as a separate segment. The new
segment structure reflects the Group's internal reporting structure, in which
equipment rental and modular space businesses have been combined under the
management of each country. As of the beginning of 2009, Norway and Denmark will
be reported as separate segments rather than as the Western Europe segment.
Consequently, Cramo Group's business segments in 2009 are Finland, Sweden,
Norway, Denmark and Central and Eastern Europe. In addition to segment
information, Cramo also continues to report the order book value for modular
space.
EQUIPMENT RENTAL
The equipment rental business reported sales of EUR 505.3 (425.9) million in
2008, for an increase of 18.6 per cent. Sales by geographic segment were as
follows: Finland 17.6 (17.8) per cent, Sweden 47.2 (50.4) per cent, Western
Europe 20.0 (18.2) per cent and Central and Eastern Europe 15.3 (13.7) per cent.
The equipment rental business reported an EBITA of EUR 78.5 (86.0) million,
representing a decline of 8.6 per cent.
According to an estimate published by the European Rental Association (ERA) in
June 2008, the European equipment rental markets in Cramo's operating area grew
by approximately 20 per cent in 2007. At that time, the value of the equipment
rental market in Finland was around EUR 420 million, in Sweden EUR 700 million,
in Norway EUR 735 million, in Denmark 550 million, in Poland EUR 200 million, in
the Czech Republic EUR 70 million, in Slovakia EUR 30 million, in Estonia EUR 60
million, in Latvia EUR 60 million and in Lithuania EUR 50 million.
The equipment rental business segment's major customers operate in the
construction sector and manufacturing industry. In addition, the segment
provides services to the public sector and private customers. Cramo aims to
increase its share of customers in the public sector and areas other than the
construction industry. For example, a significant share of sales in Norway comes
from services offered to companies in the oil, gas and marine industries.
The construction industry accounted for 58 per cent of the entire Group's sales
during the year. The share of other industry has decreased to 21 per cent and
public sector has increased to 14 per cent. Households and other customers both
account for less than 4 per cent of sales. Households are clearly a higher share
of the customer base in Finland than in other countries.
Finland
Cramo is one of the two largest players on the equipment rental market in
Finland. There are also many small and specialised competitors in Finland.
Despite the tougher competition, Cramo estimates that it increased its market
share in 2008. In particular, service activities related to rentals showed
strong growth.
The equipment rental business in Finland reported sales of EUR 88.7 (75.8)
million during the year, for an increase of 17.1 per cent. EBITA totalled EUR
15.2 million, or 17.1 (19.1) per cent of sales, showing an increase of 4.7 per
cent. Although sales development was in line with the targets, the profitability
target was quite not reached.
Sales in October-December were EUR 22.3 (20.9) million, representing a growth of
6.8 per cent. EBITA for the last quarter totalled EUR 3.5 (4.2) million, or 15.6
(19.9) per cent of sales.
The weakened markets affected the equipment rental business in Finland in the
last quarter. While the measures to enhance profitability initiated in the
second quarter began to show results in the third quarter, the weakened market
situation at the end of the year meant that the overall profitability for the
year fell below the target. As part of the adjustment measures, two sets of
statutory negotiations were held in the last quarter concerning staff reductions
and lay-offs.
Construction continued on logistics centres, or hubs, to improve the transport
and maintenance of heavy equipment. The seven-centre network was completed with
the opening of the new hubs in Jyväskylä, Kouvola, Turku and Vaasa. Development
of the staff's sales and supervisory skills continued, and the sales
organisation was changed into a sector-specific organisation. The total solution
provider concept for the service range was well-received by customers. The most
important customer agreement was an outsourcing agreement signed with
Rakennusliike A. Taskinen, which is part of the Lemminkäinen Group.
In October, the Confederation of Finnish Construction Industries RT estimated
that growth in construction would be 4 per cent in 2008. According to RT's
estimate, housing construction grew by 4.5 per cent but the number of new
commercial building projects decreased. Civil engineering construction increased
by 3 per cent. According to RT, construction will decline by 4 per cent in 2009
as construction of new homes drops dramatically. Commercial construction will
also decline. Civil engineering construction will remain at the previous year's
level. RT predicts an increase of 3.5 per cent in renovation projects in both
2008 and 2009.
In December, Euroconstruct estimated that the Finnish construction market had
grown by 1 per cent in 2008. This growth can be attributed to brisk commercial
and civil engineering construction. Growth in renovation projects was about 2
per cent. Construction of new homes fell by 11 per cent. Euroconstruct expects
construction to decline by nearly 10 per cent in 2009. New housing starts will
drop by nearly 16 per cent, commercial construction by 23 per cent and civil
engineering construction by 4 per cent.
Renovation projects are expected to grow by 2 per cent.
Sweden
Cramo is the clear market leader in the Swedish equipment rental business. It
competes with one national and several regional players and a large number of
local rental companies. Cramo estimates that its market share grew in 2008,
particularly in Eastern and Northern Sweden and in the Stockholm area.
The equipment rental business in Sweden reported sales of EUR 238.3 (214.5)
million in 2008, for an increase of 11.1 per cent. EBITA totalled EUR 51.8
(48.0) million, or 21.8 (22.4) per cent of sales, showing an increase of 8.1 per
cent. Development of both sales and profitability was in line with the targets.
Sales in the last quarter amounted to EUR 57.0 (60.2) million, representing a
decline of 5.4 per cent. EBITA totalled EUR 11.5 (12.6) million, or 20.3 (21.0)
per cent of sales. The clear weakening of the Swedish krona in relation to the
euro affected the 2008 sales and EBITA as measured in euros in the fourth
quarter.
Business development in 2008 was in line with expectations. Demand remained
quite strong in Sweden, but the competition has become tougher. Utilisation
rates for Cramo equipment were still high at the end of the year. The change in
the operating environment became apparent at the end of the last quarter in the
form of postponed construction projects. The adjustment measures initiated at
the end of the year will continue in 2009.
One of the most important customer agreements was an agreement signed with
Skanska Sverige AB in January, which makes Cramo the main supplier of access
equipment to Skanska in Sweden. However, the initial estimated scope of the
agreement, EUR 6.5 million, will not quite be achieved due to the slowdown in
Skanska's construction. Kranab, which was integrated into the Group in April,
increased sales even more than expected. The integration has gone smoothly, and
Cramo has clearly improved its position as an access rental company in the
Stockholm area. Co-operation with the mining company LKAB expanded in the autumn
when LKAB announced an investment of approximately EUR 1.2 billion in its ore
mine in Kiruna. Cramo and LKAB agreed on making Cramo the main supplier of
rental services and modular space to LKAB. The order is expected to be at least
EUR 15 million in size over the next four years, making it one of the largest in
this sector in the Nordic countries.
The Swedish Construction Federation estimated in December that construction had
grown by about 2 per cent in 2008. However, construction investments already
began to drop in the third quarter. Commercial construction grew by 10 per cent
and civil engineering grew by 8 per cent, thus ensuring the growth of the entire
construction market. Housing construction dropped by 7 per cent in 2008. In
2009, the Swedish Construction Federation expects construction to decline by at
least 6 and perhaps even 11 per cent. Housing construction is expected to fall
by 28-36 per cent. According to the forecast, commercial construction will
remain at the 2008 level or grow by a maximum of 4 per cent. Civil engineering
is expected to increase by 8-10 per cent.
In December, Euroconstruct estimated that the Swedish construction market had
grown by 0.7 per cent in 2008. Euroconstruct estimated that housing construction
had declined by 17 per cent, while commercial construction had increased by 4.5
per cent and civil engineering by 14 per cent. Euroconstruct expects
construction to increase by 0.2 per cent in 2009. Housing construction will
continue to decline, falling more than 18 per cent. Commercial construction will
also decline by 8 per cent. The overall construction market will continue to
grow slightly as a result of civil engineering, which will grow approximately 12
per cent.
Western Europe
Cramo's equipment rental business in Western Europe consists of its Norwegian
and Danish operations. The Norwegian equipment rental market has one clear
market leader, a few medium-sized and several small local rental companies. The
several small rental companies in Denmark also gained a second large,
international competitor in 2007. Cramo estimates that it is the third largest
service provider in terms of market position in both Norway and Denmark.
In Western Europe, the equipment rental business recorded sales of EUR 101.0
(77.4) million in 2008, showing an increase of 30.4 per cent. Compared with
comparative sales for 2007 excluding the Netherlands, the year-on-year growth
rate was 35.5 per cent. The Dutch business was divested on 1 April 2007.
Investments and outsourcing increased sales. EBITA totalled EUR 1.5 (6.5)
million, or 1.5 (8.4) per cent of sales. Profit for the entire year was clearly
below the target. This was due to a strong expansion in operations early in the
year, a dramatically weakened market situation and tougher price competition at
the end of the year as well as non-recurring reorganisation expenses of EUR 0.6
million that were allocated to the last quarter.
Sales in the last quarter amounted to EUR 24.2 (23.1) million, representing a
growth of 4.9 per cent. EBITA for the last quarter amounted to EUR -3.2 (1.7)
million, representing -13.3 (7.4) per cent of sales. The weakened market
situation could clearly be seen in sales and profit. Measures to improve
profitability initiated in 2008 will continue in 2009.
In line with its target, Cramo was able to strengthen its market share
significantly in both Norway and Denmark. Two new depots were opened in Norway
and 5 in Denmark, giving Cramo 27 depots in Norway and 22 depots in Denmark at
the end of the year. The service range was expanded, particularly in Norway. In
Norway, Cramo signed a major outsourcing agreement with JM Byggholt AS. In
Denmark, the outsourcing agreement signed in the previous year with Skanska
progressed to the integration phase.
Cramo's aim in 2009 is to improve profitability in Norway and Denmark by
adjusting costs and increasing efficiency. At the same time, Cramo will develop
its total service concept and the synergies between the rental business and
modular space.
According to an estimate published by Euroconstruct in December, construction
declined by about 2.5 per cent in both Norway and Denmark. Housing construction
fell by 24 per cent in Norway and 10 per cent in Denmark. Commercial
construction grew by nearly 10 per cent in Norway and about 1 per cent in
Denmark. Civil engineering construction will remain at the previous year's level
in both countries. In 2009, Euroconstruct expects construction to decline by
nearly 8 per cent in Norway and 4.6 per cent in Denmark. New housing starts will
fall by 27 per cent in Norway and commercial construction by 15 per cent, but
civil engineering will increase by nearly 6 per cent. In Denmark, new housing
construction will decline by 30 per cent and commercial construction by about 3
percent. Civil engineering is expected to increase by 10 per cent in Denmark.
Renovation projects are also expected to increase slightly in Denmark.
Central and Eastern Europe
Cramo Group's equipment rental business sales in Central and Eastern Europe come
from Estonia, Latvia, Lithuania, Poland, the Czech Republic, Russia and
Slovakia.
Rental business sales in Central and Eastern Europe amounted to EUR 77.3 (58.2)
million in 2008. Sales increased by 32.8 per cent, and Cramo strengthened its
market position in all markets. EBITA totalled EUR 10.0 (17.1) million, or 13.0
(29.3) per cent of sales. Profit for the entire year remained below the target.
Profit was negatively affected by a dramatic slowdown in construction in the
Baltic countries and growth investments in Russia.
Sales in the last quarter amounted to EUR 19.7 (18.1) million, representing a
growth of 8.9 per cent. EBITA totalled EUR 0.4 (4.9) million, or 1.9 (27.2) per
cent of sales. The changes in exchange rates reduced growth in sales as measured
in euros. Profit for the last quarter includes reorganisation expenses totalling
EUR 0.9million.
With the exception of Estonia, sales grew by 68 per cent in Central and Eastern
Europe. Sales in Estonia fell, but despite this the combined sales in all Baltic
countries increased by 3 per cent. Russian operations grew by 171 per cent. In
Central Europe, or Poland, the Czech Republic and Slovakia, sales grew by 85 per
cent. Growth in sales in Central and Eastern Europe was fuelled by good demand
and the expansion of business organically and through acquisitions, as well as
the systematic development of key customer relations.
New depots were opened during the year in Poland, the Czech Republic, Estonia
and Russia. 4 depots were closed in the Baltic countries. Acquisitions added the
number of new depots in Czech Republic, Slovakia and Latvia. Russia operations
were expanded to St. Petersburg and Moscow as well as Jekaterinburg and
Kaliningrad. The number of rental depots was 82 at the end of the year.
The equipment rental market in the Baltic countries has slowed as construction
and residential construction in particular have declined. The outlook for new
construction has also weakened in Russia, but an increase in demand for rental
services insteadof equipment purchases can be seen. In the near future, the high
interest level on the Russian ruble will pose a threat to the development of
investment demand in Russia. The market outlooks in Poland, the Czech Republic
and Slovakia are still relatively good, but economic uncertainty can also be
seen there in the delay of new starts. Competition has become tougher,
especially in Poland.
Cramo is preparing for the weakening market situation in 2009 by enhancing the
structure of its depot network, making adjustments in costs and the number of
personnel and increasing its efforts to optimise the rental fleet between
markets. The main impact of these measures will be on the business in the Baltic
countries. The long-term outlook for the rental business remains good throughout
Central and Eastern Europe.
According to a survey published by Euroconstruct in December, construction in
Estonia declined by 8 per cent in 2008, and is expected to fall by 10 per cent
in 2009. The corresponding figures in Latvia are -1 and -10 per cent.
Construction in Lithuania was estimated to have grown by 7 per cent in 2008 but
a decline of 5 per cent is expected in 2009. In Poland, where civil engineering
projects in particular are doing well (thanks to EU support), construction
increased by more than 12 per cent in 2008 and is expected to grow by 8 per cent
in 2009. In the Czech Republic, construction was estimated to have grown by 2.2
per cent in 2008, and this growth is expected to continue by 3.6 per cent in
2009. The corresponding figures for Slovakia are 6 and 2.2 per cent.
It is difficult to obtain up-to-date information on recent market development in
Russia. According to general forecasts, construction was estimated to have grown
in Russia in 2008, but this growth slowed significantly at the end of the year.
MODULAR SPACE
The modular space business recorded sales of EUR 79.8 (76.7) million in 2008,
showing an increase of 4.0 per cent. EBITA totalled EUR 23.9 (19.4) million, and
29.9 (25.2) per cent of sales, for an increase of 23.2 per cent. Profitability
improved clearly from the previous year and was at an excellent level. The order
book value also improved and, at the end of the year, was higher than in the
previous year.
Sales in the last quarter amounted to EUR 20.6 (22.4) million, representing a
decline of -7.8 per cent. EBITA for the last quarter amounted to EUR 6.1 (5.3)
million, representing 29.5 (23.7) per cent of sales. Sales and performance
continued to develop favourably in the last quarter. Both utilisation rates and
the order book value remained high.
The positive development of sales and performance can be attributed to good
demand, increased production capacity at the start of the year and efficient
equipment fleet management. The most significant rental agreements concern
day-care centres delivered to the city of Espoo and a EUR 2 million agreement
signed at the end of the year for the delivery of three two-storey school
buildings to the municipality of Fet in Norway.
The vast majority of sales in the modular space business are generated in the
Finnish and Swedish markets. Cramo also operates in Norway and Denmark. While
the Finnish operations involve the rental, sale and manufacture of modular
space, operations in other markets cover only their rental. The rental business
accounted for more than 75 per cent of sales last year. In particular, space
needs in the public sector have increased, partly as a result of strong
migration, and growth is being sought in the public sector. The public sector
account for over 50 per cent of modular space sales, industry slightly less than
40 per cent and the construction industry and other customers together 5 per
cent.
Cramo has been the clear market leader in Finland for a long time and believes
that this position will continue to strengthen. Competition is becoming stiffer
in Finland and Sweden, but in Sweden Cramo maintained its position as the market
leader. In Norway, Cramo increased its share significantly and is now the market
leader there as well. In Denmark, Cramo has become a significant supplier of
modular space.
Cramo will focus more strongly on long-term rental of modular space and believes
that the trend towards longer rental periods will continue. The aim in 2009 is
to keep the utilisation rate high in Finland and Sweden and to increase the
market share and share of long-term agreements in Norway and Denmark. The
opportunities to supply modular space are also considered to be good in the
Baltic countries and Poland.
Cramo is confident that a portion of the construction projects postponed due to
the economic slowdown will be offset by rental spaces-. However, the general
economic uncertainty has been apparent in longer decision-making periods
concerning rental space. As part of the decrease in the level of investments,
Cramo will downsize the production of new rental spaces, and these adjustment
measures will continue in 2009.
The equipment rental and modular space functions will be integrated at the
beginning of 2009 so that each geographic segment is also responsible for
offering modular space. The aim is to increase the synergy benefits of the
businesses and to make modular space a more integral part of the Group's total
service provider concept.
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.
SALES BY GEOGRAPHIC SEGMENT
Cramo Group's secondary segment reporting format is based on geographic regions.
Finland generated EUR 126.3 (113.4) million or 21.3 (22.4) per cent of the total
consolidated sales, Sweden EUR 273.8 (248.5) million or 46.3 (49.2) per cent,
Western Europe EUR 114.1 (85.2) million or 19.3 (16.9) per cent, and Central and
Eastern Europe EUR 77.4 (58.3) million or 13.1 (11.5) per cent. These figures
include both the equipment rental business and the modular space business.
SHARES AND SHARE CAPITAL
On 31 December 2008, Cramo Plc had a share capital of EUR 24,834,753.09 and the
total number of shares was 30,660.189. There were no changes in the share
capital or the number of shares during the period under review.
VALID OPTION SCHEMES
The Extraordinary General Meeting held on 20 November 2008 decided on an option
scheme under which a maximum of 3,000,000 stock options will be issued,
entitling their holders to subscribe for a maximum of 3,000,000 new company
shares. The subscription period for stock options 2006A is from 1 October 2009
to 31 January 2011, stock options 2006B from 1 October 2010 to 31 January 2012
and stock options 2006C from 1 October 2011 to 31 January 2013. The subscription
price for stock options 2006A is EUR 14.51, in other words, the trading-weighted
average share price between 1 October and 31 October 2006. The subscription
price for stock options 2006B is the trading-weighted average share price
between 1 October and 31 October 2007, or EUR 26.47, and for stock options 2006C
the trading-weighted average share price between 1 October and 31 October 2008
or EUR 5.56. Annual dividends will be deducted from the subscription price.
On 31 December 2008, Cramo Group's key personnel held a total of 712,000 2006A
stock options, 865,000 2006B and 1,000,000 2006C stock options. The 2007 option
scheme covers 100 key persons of the Group.
TRADING ON NASDAQ OMX IN HELSINKI
Cramo Plc has been listed on the Helsinki Stock Exchange since 1988. The share
code is CRA1V. In the Nordic list, Cramo Plc is classified as a mid cap company
in the industrials sector.
In the financial year from 1 January-31 December 2008, the lowest trading price
for Cramo Plc stock was EUR 4.25 and the highest EUR 18.50. The trading-weighted
average share price was EUR 10.96 The closing price for the share on 31 December
2008 was EUR 4.60 and the company's market value EUR 141 million.
ANNUAL GENERAL MEETING
Cramo Plc's Annual General Meeting (AGM) on 23 April 2008 discussed matters
assigned to the AGM in the Articles of Association, the Board's proposals
concerning authorisations to repurchase and sell company shares, and the Board's
proposal concerning authorisation to issue shares and decide upon special rights
entitling their holder to shares.
The AGM approved the financial reports for the Group and the parent company for
2007 and discharged the members of the Board of Directors and the President and
CEO from liability for the financial year 2007. The AGM decided that a dividend
of EUR 0.65 per share be distributed.
The AGM re-elected Stig Gustavson, Gunnar Glifberg, Eino Halonen, Hannu
Krogerus, Esko Mäkelä and Juhani Nurminen to the Board of Directors. Fredrik
Cappelen was elected as a new member to the Board.
The Annual General Meeting confirmed the remuneration as EUR 60,000 per year for
the Chairman of the Board, EUR 40,000 per year for the Vice Chairman and EUR
30,000 for the other members of the Board. Forty per cent of the remuneration
shall be paid in Cramo Plc shares and sixty per cent in cash. Remuneration for
foreign members can be paid entirely in cash. In addition, an attendance fee of
EUR 1,000 was approved for attendance at each meeting of the Board's Audit
Committee and the Nomination and Compensation Committees.
The AGM authorised the Board of Directors to decide upon the acquisition or
transfer of a maximum of 3,066,000 treasury shares in one or more tranches. The
AGM authorised the Board of Directors to decide on a share issue and on issuing
option rights, convertible bonds and other special rights entitling their holder
to shares as referred to in Chapter 10, section 1, of the Finnish Limited
Liability Companies Act as well as all the terms of the share issue and
provision of special rights entitling their holder to shares.
Cramo Plc's auditors were Tomi Englund, Authorised Public Accountant and Ernst &
Young Oy Authorised Public Accountants with Erkka Talvinko as the main
responsible accountant.
VALID BOARD AUTHORISATIONS
The Annual General Meeting held on 23 April 2008 authorised the Board of
Directors to acquire treasury shares in one or several tranches and to decide on
their transfer in one or several tranches. The Board of Directors is also
authorised to decide on a share issue and on issuing option rights, convertible
bonds and other special rights entitling their holder to shares as referred to
in Chapter 10, section 1, of the Finnish Limited Liability Companies Act.
The Board also has the authorisation to issue a maximum of 3,000,000 stock
option rights pertaining to the 2006 option scheme.
Prior to the AGM on 23 April 2008, the Board of Directors did not have any
authorisations to increase share capital, issue convertible bonds or buy back
treasury shares.
CORPORATE GOVERNANCE AND AUDITORS
As of 24 April 2008, the Cramo Plc Board of Directors consists of Stig Gustavson
(Chairman), Gunnar Glifberg, Eino Halonen, Hannu Krogerus, Esko Mäkelä, Juhani
Nurminen and Fredrik Cappelen.
The Audit Committee members are Eino Halonen (Chairman), Esko Mäkelä and Juhani
Nurminen. Members of the Nomination and Compensation Committee are Stig
Gustavson (Chairman), Gunnar Glifberg and Hannu Krogerus.
Board members Stig Gustavson, Hannu Krogerus, Esko Mäkelä, Juhani Nurminen,
Fredrik Cappelen and Eino Halonen are deemed independent of the company and its
major shareholders. Gunnar Glifberg is deemed independent of the major
shareholders, but as the former President and CEO of Cramo AB until autumn 2005,
he is deemed dependent of the company until the autumn of 2008.
The Board members until 23 April 2008 were Stig Gustavson (Chairman), Eino
Halonen (Vice Chairman), Gunnar Glifberg, Hannu Krogerus, Juhani Nurminen and
Esko Mäkelä. The Audit Committee members until 23 April 2008 were Eino Halonen
(Chairman), Esko Mäkelä and Juhani Nurminen. Members of the Nomination and
Compensation Committee were Stig Gustavson (Chairman), Gunnar Glifberg and Hannu
Krogerus.
In 2008 the Board met 12 times, the Audit Committee four times and the
Nomination and Compensation Committee two times.
On 31 December 2008, the Board members, the President and CEO and his deputy
held, either directly or through companies in which they exercise control, a
total of 122,591 Cramo Plc shares, which represents 0.40 per cent of the
company's shares and votes, and a total of 458,000 stock options.
The company's auditors were Tomi Englund, Authorised Public Accountant and Ernst
& Young Oy Authorised Public Accountants, with Erkka Talvinko, Authorised Public
Accountant, as the main responsible auditor
Cramo Plc observes the Finnish Corporate Governance Code issued by the OMX
Nordic Exchange Helsinki, 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 and 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. As of the beginning of 2009,
Cramo Plc has observed the Finnish Corporate Governance Code that entered into
effect on 1 January 2009.
CHANGES IN SHAREHOLDINGS
On 29 January 2008, UBS AG notified Cramo Plc that the shareholding of its
companies UBS AG (Switzerland) and UBS AG London Branch in Cramo Plc had
exceeded the five per cent limit on 28 January 2008. After the notification, the
company held 1,677,610 shares, representing 5.47 per cent of Cramo Plc shares
and votes.
On 24 April 2008, UBS AG notified Cramo that shares held by UBS AG (Switzerland)
and UBS AG London Branch in Cramo Plc had fallen below the five per cent limit.
Following the notification, the companies held a total of 100,299 Cramo Plc
shares, representing 0.33 per cent of shares and votes.
On 25 April 2008, Morgan Stanley notified Cramo Plc that the shareholding of its
companies Morgan Stanley & Co International plc, Morgan Stanley & Co.
Incorporated and MSDW Equity Financing Services in Cramo Plc had exceeded the
five per cent limit. After the notification, the companies held a total of
2,629,852 Cramo Plc shares, representing 8.57 per cent of shares and votes.
On 29 April 2008, Morgan Stanley notified Cramo Plc that the shareholding of
Morgan Stanley & Co International plc and Morgan Stanley & Co. Incorporated in
Cramo Plc had fallen below the five per cent limit. Following this notification,
the companies held a total of 1,194,008 Cramo Plc shares, representing 3.89 per
cent of shares and votes.
On 2 May 2008, UBS AG notified Cramo that the shareholding of UBS AG
(Switzerland), UBS AG London Branch and UBS O´Connor LLC in Cramo Plc had
exceeded the five per cent limit. After the notification, the companies held a
total of 1,968,793 Cramo Plc shares, representing 6.42 per cent of shares and
votes.
On 2 May 2008, Morgan Stanley notified Cramo Plc that the shareholding of Morgan
Stanley & Co International plc and Morgan Stanley & Co. Incorporated in Cramo
Plc had exceeded the five per cent limit. Following the notification, the
companies held a total of 2,542,769 Cramo Plc shares, representing 8.29 per cent
of shares and votes.
On 6 May 2008, Morgan Stanley notified Cramo Plc that the shareholding of Morgan
Stanley & Co International plc and Morgan Stanley & Co. Incorporated in Cramo
Plc had fallen below the five per cent limit. After this notification, the
companies held a total of 1,172,239 Cramo Plc shares, representing 3.82 per cent
of shares and votes.
On 14 May 2008, UBS AG notified Cramo that the shareholding of UBS AG
(Switzerland), UBS AG London Branch and UBS O´Connor LLC in Cramo Plc had fallen
below the five per cent limit. Following this notification, the companies held a
total of 1,453,431 Cramo Plc shares, representing 4.74 per cent of shares and
votes.
On 23 May 2008, UBS AG notified Cramo that the shareholding of UBS AG
(Switzerland), UBS AG London Branch and UBS O´Connor LLC in Cramo Plc had
exceeded the five per cent limit. After the notification, the companies held a
total of 1,551,620 Cramo Plc shares, representing 5.06 per cent of shares and
votes.
On 2 June 2008, UBS AG notified Cramo that the shareholding of UBS AG London
Branch in Cramo Plc had fallen below the five per cent limit. Following this
notification, the company held a total of 1,532,885 Cramo Plc shares,
representing 4.99 per cent of shares and votes.
On 3 June 2008, UBS AG notified Cramo that the shareholding of UBS AG London
Branch and UBS AG (Switzerland) in Cramo Plc had exceeded the five per cent
limit. After this notification, the companies held a total of 1,540,622 Cramo
Plc shares, representing 5.02 per cent of shares and votes.
ESSENTIAL RISKS AND UNCERTAINTIES
The main sources of uncertainty in Cramo's business are related to global
economic developments, as well as the economic cycle and financial development
of each country, fluctuations in interest and exchange rates, availability of
financing, credit loss risks and the success of the Group's acquisitions. The
international financial crisis has increased the risks involved with business.
There are increased risks associated with the availability of financing, the
cost of financing as well as credit loss risks. In addition, the weakened market
situation brings depreciation risks to the balance sheet values resulting from
acquisitions and risks of deviating from the covenant terms in the Group's
long-term loans. Greater attention will be paid to the Group's risk management
in the changed operating environment.
PROFIT DISTRIBUTION POLICY AND BOARD OF DIRECTORS' PROPOSAL FOR PROFIT
DISTRIBUTION
In accordance with the company's profit distribution policy specified in
February 2007, Cramo Plc's profit distribution goal is to distribute around one
third of the Group's annual profit in terms of share buybacks and/or dividends.
The aim is to maintain a steadily improving flow of dividends, while taking into
account the Group's investment requirements for growth.
The Board of Directors proposes to the Annual General Meeting that a dividend of
EUR 0.40 be paid for the financial year 1 January-31 December 2008. 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.
The information in this Financial Report is based on unaudited figures.
TABLES
This financial report has been prepared in accordance with IAS 34: Interim
Financial Reporting. The same accounting policies and definitions of key
financial figures have been adopted as in Cramo Plc's annual financial report.
The Group has applied the following standards, amendments and interpretations:
IAS 1, Presentation of Financial Statements, IFRS 7, Financial Instruments:
Disclosures, IFRS 8, Operating Segments, IFRIC 8, 11 and 12. Changes are not
assessed as being significant within Cramo's financial figures.
--------------------------------------------------------------------------------
| CONSOLIDATED BALANCE SHEET | 31.12.08 | 31.12.07 |
| (EUR 1,000) | | |
--------------------------------------------------------------------------------
| ASSETS | | |
--------------------------------------------------------------------------------
| NON-CURRENT ASSETS | | |
--------------------------------------------------------------------------------
| Property, plant and equipment | 585,554 | 487,038 |
--------------------------------------------------------------------------------
| Goodwill | 147,850 | 152,367 |
--------------------------------------------------------------------------------
| Other intangible assets | 97,259 | 95,359 |
--------------------------------------------------------------------------------
| Available-for-sale investments | 314 | 332 |
--------------------------------------------------------------------------------
| Receivables | 7,705 | 3,954 |
--------------------------------------------------------------------------------
| Deferred income tax assets | 17,391 | 2,974 |
--------------------------------------------------------------------------------
| TOTAL NON-CURRENT ASSETS | 856,074 | 742,024 |
--------------------------------------------------------------------------------
| CURRENT ASSETS | | |
--------------------------------------------------------------------------------
| Inventories | 15,920 | 16,903 |
--------------------------------------------------------------------------------
| Trade and other receivables | 117,469 | 117,548 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 8,123 | 18,489 |
--------------------------------------------------------------------------------
| TOTAL CURRENT ASSETS | 141,513 | 152,940 |
--------------------------------------------------------------------------------
| TOTAL ASSETS | 997,587 | 894,964 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | | |
--------------------------------------------------------------------------------
| EQUITY | | |
--------------------------------------------------------------------------------
| Share capital | 24,835 | 24,835 |
--------------------------------------------------------------------------------
| Share premium fund | 186,910 | 186,910 |
--------------------------------------------------------------------------------
| Fair value reserve | 117 | 117 |
--------------------------------------------------------------------------------
| Hedging fund | 6,792 | 6,334 |
--------------------------------------------------------------------------------
| Translation differences | -30,289 | -1,867 |
--------------------------------------------------------------------------------
| Retained earnings | 131,111 | 117,351 |
--------------------------------------------------------------------------------
| TOTAL EQUITY | 319,476 | 333,680 |
--------------------------------------------------------------------------------
| RESERVES | | |
--------------------------------------------------------------------------------
| Reserves | 186 | 363 |
--------------------------------------------------------------------------------
| NON-CURRENT LIABILITIES | | |
--------------------------------------------------------------------------------
| Deferred income tax liabilities | 78,967 | 62,200 |
--------------------------------------------------------------------------------
| Interest bearing liabilities | 288,700 | 274,087 |
--------------------------------------------------------------------------------
| Other non-current liabilities | 5,622 | 8,514 |
--------------------------------------------------------------------------------
| CURRENT LIABILITIES | | |
--------------------------------------------------------------------------------
| Trade and other payables | 108,090 | 106,733 |
--------------------------------------------------------------------------------
| Interest bearing liabilities | 196,546 | 109,387 |
--------------------------------------------------------------------------------
| TOTAL LIABILITIES | 677,925 | 560,921 |
--------------------------------------------------------------------------------
| TOTAL EQUITY AND LIABILITIES | 997,587 | 894,964 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED | 10-12/08 | 10-12/07 | 1-12/08 | 1-12/07 |
| INCOME STATEMENT | | | | |
| 1 January - | | | | |
| 30 December 2008 | | | | |
| (EUR 1,000) | | | | |
--------------------------------------------------------------------------------
| SALES | 143,316 | 143,773 | 579,802 | 496,428 |
--------------------------------------------------------------------------------
| Other operating income | 6,861 | 367 | 16,855 | 7,798 |
--------------------------------------------------------------------------------
| Change in inventories in | -1,216 | -2,003 | -770 | 966 |
| finished goods and in work | | | | |
| in progress | | | | |
--------------------------------------------------------------------------------
| Production for own use | 5,892 | 4,922 | 18,725 | 15,379 |
--------------------------------------------------------------------------------
| Materials and services | -32,124 | -31,523 | -117,240 | -106,396 |
--------------------------------------------------------------------------------
| Employee benefits | -29,509 | -27,174 | -118,460 | -101,608 |
--------------------------------------------------------------------------------
| Depreciation | -22,845 | -17,237 | -85,412 | -62,356 |
--------------------------------------------------------------------------------
| Amortisation on intangible | -5,265 | -1,013 | -10,350 | -4,119 |
| assets resulting from | | | | |
| acquisitions | | | | |
--------------------------------------------------------------------------------
| Other operating expenses | -50,530 | -44,981 | -191,346 | -154,248 |
--------------------------------------------------------------------------------
| OPERATING PROFIT | 14,578 | 25,131 | 91,804 | 91,844 |
--------------------------------------------------------------------------------
| % of sales | 10.2 | 17.5 | 15.8 | 18.5 |
--------------------------------------------------------------------------------
| Finance costs (net) | -9,828 | -4,599 | -28,128 | -16,036 |
--------------------------------------------------------------------------------
| PROFIT BEFORE TAXES | 4,749 | 20,532 | 63,675 | 75,808 |
--------------------------------------------------------------------------------
| % of sales | 3.3 | 14.3 | 11.0 | 15.3 |
--------------------------------------------------------------------------------
| Income taxes | 1,983 | -5,853 | -15,025 | -18,323 |
--------------------------------------------------------------------------------
| PROFIT FOR THE PERIOD | 6,732 | 14,679 | 48,650 | 57,485 |
--------------------------------------------------------------------------------
| % of sales | 4.7 | 10.2 | 8.4 | 11.6 |
--------------------------------------------------------------------------------
| Earnings per share, | 0.22 | 0.48 | 1.59 | 1.88 |
| undiluted, EUR | | | | |
--------------------------------------------------------------------------------
| Earnings per share, | 0.22 | 0.48 | 1.59 | 1.87 |
| diluted, EUR | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CHAN | Sha- | Sha- | Share | Fair | Hed- | Trans- | Re- | Total |
| GES | re | re | pre- | va- | ging | lation | tained | |
| IN | ca- | is- | mium | lue | fund | diffe- | ear- | |
| GROU | pi- | sue | | re- | | rence | nings | |
| P'S | tal | | | ser- | | | | |
| EQUI | | | | ve | | | | |
| TY | | | | | | | | |
| (EUR | | | | | | | | |
| 1,00 | | | | | | | | |
| 0) | | | | | | | | |
--------------------------------------------------------------------------------
| Tota | 24,508 | 143 | 185,836 | 117 | 3,301 | 2,818 | 75,521 | 292,244 |
| l | | | | | | | | |
| equi | | | | | | | | |
| ty | | | | | | | | |
| on | | | | | | | | |
| 1.1. | | | | | | | | |
| 2007 | | | | | | | | |
--------------------------------------------------------------------------------
| Tran | | | | | | -4,685 | -2,134 | -6,819 |
| slat | | | | | | | | |
| ion | | | | | | | | |
| diff | | | | | | | | |
| eren | | | | | | | | |
| ce | | | | | | | | |
--------------------------------------------------------------------------------
| Hedg | | | | | 3,033 | | | 3,033 |
| ing | | | | | | | | |
| fund | | | | | | | | |
--------------------------------------------------------------------------------
| Prof | | | | | | | 57,485 | 57,485 |
| it | | | | | | | | |
| for | | | | | | | | |
| the | | | | | | | | |
| peri | | | | | | | | |
| od | | | | | | | | |
--------------------------------------------------------------------------------
| Tota | | | | | 3,033 | -4,685 | 55,351 | 53,699 |
| l | | | | | | | | |
| inco | | | | | | | | |
| me | | | | | | | | |
| and | | | | | | | | |
| expe | | | | | | | | |
| nse | | | | | | | | |
| for | | | | | | | | |
| the | | | | | | | | |
| year | | | | | | | | |
--------------------------------------------------------------------------------
| Divi | | | | | | | -15,326 | -15,326 |
| dend | | | | | | | | |
| dist | | | | | | | | |
| ribu | | | | | | | | |
| tion | | | | | | | | |
--------------------------------------------------------------------------------
| Exer | 327 | -143 | 1,074 | | | | | 1,258 |
| cise | | | | | | | | |
| of | | | | | | | | |
| opti | | | | | | | | |
| ons, | | | | | | | | |
| regi | | | | | | | | |
| ster | | | | | | | | |
| ed | | | | | | | | |
--------------------------------------------------------------------------------
| Shar | | | | | | | 1,805 | 1,805 |
| e | | | | | | | | |
| base | | | | | | | | |
| d | | | | | | | | |
| paym | | | | | | | | |
| ents | | | | | | | | |
--------------------------------------------------------------------------------
| Tota | 24,835 | | 186,910 | 117 | 6,334 | -1,867 | 117,351 | 333,680 |
| l | | | | | | | | |
| equi | | | | | | | | |
| ty | | | | | | | | |
| on | | | | | | | | |
| 31.1 | | | | | | | | |
| 2. | | | | | | | | |
| 2007 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Tota | 24,835 | | 186,910 | 117 | 6,334 | -1,867 | 117,351 | 333,680 |
| l | | | | | | | | |
| equi | | | | | | | | |
| ty | | | | | | | | |
| on | | | | | | | | |
| 1.1. | | | | | | | | |
| 2008 | | | | | | | | |
--------------------------------------------------------------------------------
| Tran | | | | | | -28,42 | -17,729 | -46,151 |
| slat | | | | | | 2 | | |
| ion | | | | | | | | |
| diff | | | | | | | | |
| eren | | | | | | | | |
| ces | | | | | | | | |
--------------------------------------------------------------------------------
| Hedg | | | | | 458 | | | 458 |
| ing | | | | | | | | |
| fund | | | | | | | | |
--------------------------------------------------------------------------------
| Prof | | | | | | | 48,650 | 48,650 |
| it | | | | | | | | |
| for | | | | | | | | |
| the | | | | | | | | |
| peri | | | | | | | | |
| od | | | | | | | | |
--------------------------------------------------------------------------------
| Tota | | | | | 458 | -28,42 | 30,921 | 2,957 |
| l | | | | | | 2 | | |
| inco | | | | | | | | |
| me | | | | | | | | |
| and | | | | | | | | |
| expe | | | | | | | | |
| nse | | | | | | | | |
| for | | | | | | | | |
| the | | | | | | | | |
| year | | | | | | | | |
--------------------------------------------------------------------------------
| Divi | | | | | | | -19,929 | -19,929 |
| dend | | | | | | | | |
| dist | | | | | | | | |
| ribu | | | | | | | | |
| tion | | | | | | | | |
--------------------------------------------------------------------------------
| Shar | | | | | | | 2,768 | 2,768 |
| e-ba | | | | | | | | |
| sed | | | | | | | | |
| paym | | | | | | | | |
| ents | | | | | | | | |
--------------------------------------------------------------------------------
| Tota | 24,835 | | 186,910 | 117 | 6,792 | -30,28 | 131,111 | 319,476 |
| l | | | | | | 9 | | |
| equi | | | | | | | | |
| ty | | | | | | | | |
| on | | | | | | | | |
| 31.1 | | | | | | | | |
| 2. | | | | | | | | |
| 2008 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED CASH FLOW STATEMENT | 1-12/08 | 1-12/07 |
| (EUR 1,000) | | |
--------------------------------------------------------------------------------
| CASH FLOW FROM OPERATING ACTIVITIES | 120,960 | 138,653 |
--------------------------------------------------------------------------------
| CASH FLOW FROM INVESTING ACTIVITIES | -216,568 | -175,234 |
--------------------------------------------------------------------------------
| CASH FLOW FROM FINANCING ACTIVITIES | | |
--------------------------------------------------------------------------------
| Proceeds from issue of share capital | | 1,258 |
--------------------------------------------------------------------------------
| Dividends paid | -19,929 | -15,326 |
--------------------------------------------------------------------------------
| Increase(+)/decrease(-) in liabilities | 68,235 | 34,393 |
--------------------------------------------------------------------------------
| Increase(+)/decrease(-) in lease | 39,154 | -6,590 |
| liabilities | | |
--------------------------------------------------------------------------------
| CASH FLOW FROM FINANCING ACTIVITIES, TOTAL | 87,460 | 13,735 |
--------------------------------------------------------------------------------
| NET CHANGE IN CASH AND CASH EQUIVALENTS | -8,149 | -22,846 |
--------------------------------------------------------------------------------
| CASH AND CASH EQUIVALENTS AT PERIOD-START | 18,489 | 41,823 |
--------------------------------------------------------------------------------
| Translation difference | -2,217 | -488 |
--------------------------------------------------------------------------------
| CASH AND CASH EQUIVALENTS AT PERIOD-END | 8,123 | 18,489 |
--------------------------------------------------------------------------------
Cash flow from investing activities includes the cash flow from the sale of
properties in Finland in 2008 and the cash flow from the sale of the Netherlands
leasing business in 2007.
--------------------------------------------------------------------------------
| CONTINGENT LIABILITIES | 31.12.08 | 31.12.07 |
| (EUR 1,000) | | |
--------------------------------------------------------------------------------
| On own behalf | | |
--------------------------------------------------------------------------------
| Mortgages on real estates | | 5,663 |
--------------------------------------------------------------------------------
| Mortgages on companies | 83,317 | 83,317 |
--------------------------------------------------------------------------------
| Pledges | 64,740 | 80,156 |
--------------------------------------------------------------------------------
| Other contingent liabilities | 11,016 | 522 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| DERIVATIVE FINANCIAL | 31.12.08 | 31.12.08 | 31.12.07 | 31.12.07 |
| INSTRUMENTS | | | | |
| (EUR 1,000) | | | | |
--------------------------------------------------------------------------------
| | NV | FV | NV | FV |
--------------------------------------------------------------------------------
| NV = nominal value | | | | |
--------------------------------------------------------------------------------
| FV = fair value | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest rate | | | | |
| derivatives | | | | |
--------------------------------------------------------------------------------
| Swaps | 142,310 | -1,637 | 138,395 | +5,492 |
--------------------------------------------------------------------------------
| Options | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Foreign exchange | | | | |
| contracts | | | | |
--------------------------------------------------------------------------------
| Forwards and swaps | 134,880 | +5,293 | 87,150 | -194 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| KEY FIGURES | 31.12.08 | 31.12.07 |
--------------------------------------------------------------------------------
| Value of outstanding orders for modular | 106,833 | 94,559 |
| space, EUR 1,000 | | |
--------------------------------------------------------------------------------
| Value of orders for modular space rental, | 102,606 | 89,250 |
| EUR 1,000 | | |
--------------------------------------------------------------------------------
| Value of orders for sale of modular space, | 4,228 | 5,309 |
| EUR 1,000 | | |
--------------------------------------------------------------------------------
| Gross capital expenditure, EUR 1,000 | 201,192 | 175,494 |
--------------------------------------------------------------------------------
| % sales | 34.7 | 35.4 |
--------------------------------------------------------------------------------
| Average personnel | 2,617 | 2,070 |
--------------------------------------------------------------------------------
| Earnings per share, undiluted, EUR | 1.59 | 1.88 |
--------------------------------------------------------------------------------
| Earnings per share, diluted 1), EUR | 1.59 | 1.87 |
--------------------------------------------------------------------------------
| Shareholders' equity per share 2), EUR | 10.42 | 10.88 |
--------------------------------------------------------------------------------
| Equity ratio, % | 32.4 | 37.3 |
--------------------------------------------------------------------------------
| Net interest-bearing liabilities, EUR 1,000 | 477,124 | 364,985 |
--------------------------------------------------------------------------------
| Gearing, % | 149.3 | 109.4 |
--------------------------------------------------------------------------------
| Issue-adjusted average number of shares | 30,660,189 | 30,586,040 |
--------------------------------------------------------------------------------
| Issue-adjusted number of shares at the | 30,660,189 | 30,660,189 |
| period-end | | |
--------------------------------------------------------------------------------
| Number of shares adjusted by the dilution | 30,660,189 | 30,815,560 |
| effect of share options | | |
--------------------------------------------------------------------------------
1) Adjusted by the dilution effect of shares with entitlement by warrants
2) Number of shares registered at the end of the period
INFORMATION BY BUSINESS SEGMENT (IN EUR 1,000)
The Group's primary segments comprise the equipment rental business and the
modular space business, The secondary, geographic segments consist of Finland,
Sweden, Western Europe and Central and Eastern Europe, The equipment rental
business sales are also presented by geographic segment.
--------------------------------------------------------------------------------
| Sales by business segment, | 10-12/08 | 10-12/07 | 1-12/08 | 1-12/07 |
| (EUR 1,000) | | | | |
--------------------------------------------------------------------------------
| Equipment rental | | | | |
--------------------------------------------------------------------------------
| - Finland | 22,308 | 20,897 | 88,723 | 75,761 |
--------------------------------------------------------------------------------
| - Sweden | 56,956 | 60,177 | 238,254 | 214,515 |
--------------------------------------------------------------------------------
| - Western Europe | 24,240 | 23,117 | 100,972 | 77,462 |
--------------------------------------------------------------------------------
| - Central and Eastern Europe | 19,737 | 18,121 | 77,315 | 58,202 |
--------------------------------------------------------------------------------
| Equipment rental, total | 123,241 | 122,312 | 505,264 | 425,940 |
--------------------------------------------------------------------------------
| - between the segments | -117 | -94 | -323 | -227 |
--------------------------------------------------------------------------------
| Modular space | 20,640 | 22,383 | 79,783 | 76,733 |
--------------------------------------------------------------------------------
| - between the segments | -449 | -827 | -4,922 | -6,017 |
--------------------------------------------------------------------------------
| Eliminations | -566 | -921 | -5,245 | -6,244 |
--------------------------------------------------------------------------------
| Sales, total | 143,316 | 143,773 | 579,802 | 496,428 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Netherlands' share of Western | 0 | 0 | 0 | 2,954 |
| Europe | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit (EBITA) | 10-12/08 | 10-12/07 | 1-12/08 | 1-12/07 |
| before amortisation on | | | | |
| intangible assets resulting | | | | |
| from acquisitions by business | | | | |
| segment, | | | | |
| (EUR 1,000) | | | | |
--------------------------------------------------------------------------------
| Equipment rental | | | | |
--------------------------------------------------------------------------------
| - Finland | 3,480 | 4,157 | 15,172 | 14,493 |
--------------------------------------------------------------------------------
| - Sweden | 11,548 | 12,609 | 51,836 | 47,952 |
--------------------------------------------------------------------------------
| - Western Europe | -3,225 | 1,710 | 1,524 | 6,487 |
--------------------------------------------------------------------------------
| - Central and Eastern Europe | 377 | 4,936 | 10,015 | 17,082 |
--------------------------------------------------------------------------------
| Equipment rental, total | 12,179 | 23,411 | 78,547 | 86,014 |
--------------------------------------------------------------------------------
| Modular space | 6,090 | 5,311 | 23,857 | 19,358 |
--------------------------------------------------------------------------------
| | 4,057 | 0 | 10,082 | 4,026 |
--------------------------------------------------------------------------------
| Non-allocated Group activities | -2,417 | -2,532 | -9,485 | -12,859 |
--------------------------------------------------------------------------------
| Eliminations | -66 | -47 | -848 | -576 |
--------------------------------------------------------------------------------
| Operating profit, total | 19,843 | 26,144 | 102,153 | 95,963 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Netherlands' share of Western | 0 | 0 | 0 | 193 |
| Europe | | | | |
--------------------------------------------------------------------------------
Non-allocated Group activities include expenses resulting from Group management,
Group financial management and financing, as well as other Group-level expenses
related to projects, Non-allocated capital gains and other income include a
capital gain of EUR 4.0 million from the sale of the Netherlands business in
2007, a capital gain of EUR 6.0 million from the sale of properties in Finland
in 2008 and EUR 4.1 million in income from the acquisition of a minority share
in Cramo Rentakran in 2008. Profit for Western Europe in 2007 includes EUR 193
thousand, representing the results of the operational business in the
Netherlands in the first quarter of 2007.
--------------------------------------------------------------------------------
| EBITA-% by business segment | 10-12/08 | 10-12/07 | 1-12/08 | 1-12/07 |
--------------------------------------------------------------------------------
| Equipment rental | | | | |
--------------------------------------------------------------------------------
| - Finland | 15.6 | 19.9 | 17.1 | 19.1 |
--------------------------------------------------------------------------------
| - Sweden | 20.3 | 21.0 | 21.8 | 22.4 |
--------------------------------------------------------------------------------
| - Western Europe | -13.3 | 7.4 | 1.5 | 8.4 |
--------------------------------------------------------------------------------
| - Central and Eastern Europe | 1.9 | 27.2 | 13.0 | 29.3 |
--------------------------------------------------------------------------------
| Equipment rental, total | 9.9 | 19.1 | 15.5 | 20.2 |
--------------------------------------------------------------------------------
| Modular space | 29.5 | 23.7 | 29.9 | 25.2 |
--------------------------------------------------------------------------------
| Non-allocated Group activities | | | | |
--------------------------------------------------------------------------------
| EBITA-%, total | 13.8 | 18.2 | 17.6 | 19.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Western Europe without | -13.3 | 7.4 | 1.5 | 8.4 |
| Netherlands | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Sales by geographical segment | 10-12/08 | 10-12/07 | 1-12/08 | 1-12/07 |
| (EUR 1,000); sales generated | | | | |
| by both the equipment rental | | | | |
| business and the modular space | | | | |
| business are included in the | | | | |
| geographical segments. | | | | |
--------------------------------------------------------------------------------
| Finland | 31,495 | 31,617 | 126,287 | 113,416 |
--------------------------------------------------------------------------------
| Sweden | 66,721 | 63,878 | 273,849 | 248,456 |
--------------------------------------------------------------------------------
| Western Europe | 27,483 | 30,832 | 114,070 | 85,177 |
--------------------------------------------------------------------------------
| Other Europe | 19,762 | 18,197 | 77,434 | 58,278 |
--------------------------------------------------------------------------------
| Eliminations | -2,146 | -749 | -11,839 | -8,897 |
--------------------------------------------------------------------------------
| Sales, total | 143,316 | 143,773 | 579,802 | 496,428 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Netherlands' share of Western | 0 | 0 | 0 | 2,954 |
| Europe | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| FINANCIAL | 10-12/0 | 7-9/08 | 4-6/08 | 1-3/08 | 1-12/08 | 1-12/07 |
| PER- | 8 | | | | | |
| FORMANCE BY | | | | | | |
| QUARTERS | | | | | | |
--------------------------------------------------------------------------------
| Sales | 143,316 | 155,697 | 154,015 | 126,774 | 579,802 | 496,428 |
--------------------------------------------------------------------------------
| EBITA | 19,843 | 34,215 | 30,679 | 17,416 | 102,153 | 95,963 |
--------------------------------------------------------------------------------
| EBITA-% | 13.8 | 22.0 | 19.9 | 13.7 | 17.6 | 19.3 |
--------------------------------------------------------------------------------
LARGEST SHAREHOLDERS
--------------------------------------------------------------------------------
| 10 Largest shareholders 31.12.08 | Shares | % |
--------------------------------------------------------------------------------
| 1 | Suomi Mutual Life Assurance Company | 2,510,176 | 8,19 |
--------------------------------------------------------------------------------
| 2 | Rakennusmestarien Säätiö (Construction | 1,862,620 | 6,08 |
| | Engineers' Fund) | | |
--------------------------------------------------------------------------------
| 3 | Ilmarinen Mutual Pension Insurance | 652,256 | 2,13 |
| | Company | | |
--------------------------------------------------------------------------------
| 4 | K.Hartwall Invest Oy | 600,000 | 1,96 |
--------------------------------------------------------------------------------
| 5 | Odin Finland | 528,864 | 1,72 |
--------------------------------------------------------------------------------
| 6 | Onninen-sijoitus Oy | 500,000 | 1,63 |
--------------------------------------------------------------------------------
| 7 | Thominvest Oy | 420,340 | 1,37 |
--------------------------------------------------------------------------------
| 8 | Kuisla Reima | 307,000 | 1,00 |
--------------------------------------------------------------------------------
| 9 | Varma Mutual Pension Insurance Company | 302,607 | 0,99 |
--------------------------------------------------------------------------------
| 10 | Rakennusmestarit ja -Insinöörit Amk | 300,938 | 0,98 |
| | Rkl | | |
--------------------------------------------------------------------------------
| | Ten largest owners, total | 7,984,801 | 26,04 |
--------------------------------------------------------------------------------
| | Nominee-registered | 8,483,745 | 27,67 |
| | -UBS AG London Branch/UBS AG | | >5,00 |
| | (Switzerland)* | | |
--------------------------------------------------------------------------------
| | Others | 14,191,643 | 46,29 |
--------------------------------------------------------------------------------
| | Total | 30,660,189 | 100,0 |
--------------------------------------------------------------------------------
*Flagging notification 5 June 2008
RELATED PARTY TRANSACTIONS
During the period under review, there were no material transactions with related
parties,
BRIEFING
Cramo will hold a briefing and a live webcast at Restaurant Sipuli, conference
room
Pommern/Passat, 2nd floor, Kanavaranta 7, Helsinki, on Wednesday, 11 February
2009 at 11 am. The briefing will be in English.
To watch the briefing live on the Internet, go to www.cramo.com. A replay of the
webcast will be available at www.cramo.com as of 11 February 2009 in the
afternoon.
PUBLICATION OF FINANCIAL INFORMATION 2009
The electronic version of the Annual Report 2008 will be published in week 10,
2009.
The 2009 Annual General Meeting will take place on Wednesday, 1 April 2009 in
Helsinki.
Cramo will publish three Interim Reports in 2009.
The January-March Interim Report will be published on Wednesday, 6 May 2009.
The January-June Interim Report will be published on Thursday, 6 August 2009.
The January-September Interim Report will be published on Tuesday, 3 November
2009.
The information in this Financial Report is based on unaudited figures.
CRAMO PLC
Vesa Koivula
President and CEO, tel. +358 10 661 10, +358 40 510 5710
Martti Ala-Härkönen
CFO, tel. +358 10 661 10, +358 40 737 6633
DISCLAIMER
This report includes certain forward-looking statements based on the
management's expectations at the time they are made. These involve risks and
uncertainties and are subject to change due to changes in general economic and
industry conditions.
DISTRIBUTION
NASDAQ OMX Helsinki
Principal media
www.cramo.com
Financial statements bulletin January-December 2008 - Good performance in a challenging operating environment
| Source: Cramo Oyj
Attachments
