CRAMO FINANCIAL STATEMENTS BULLETIN JANUARY-DECEMBER 2007
STRONG AND PROFITABLE GROWTH
- Consolidated sales EUR 496.4 (402.4) million, up 23.4%
- EBITA EUR 96.0 (72.8) million, up 31.8 %; EBIT EUR 91.8 (68.6) million, up
33.9%
- Undiluted earnings per share EUR 1.88 (1.39) and diluted earnings per share
EUR 1.87 (1.36)
- Strong growth during the year, both organically and through acquisitions
- A clear year-on-year improvement in the Group's performance
- Board proposes a dividend of EUR 0.65 (0.50) per share
- The Group's internal, as well as market indicators support a sales growth
above 18 % and EBITA above 18 % of sales in 2008, in line with the Group's
financial targets. However, macroeconomic development may change this picture.
--------------------------------------------------------------------------------
| KEY FIGURES AND RATIOS | 10-12/07 | 10-12/06 | 1-12/07 | 1-12/06 |
| (EUR 1,000) | | | | |
--------------------------------------------------------------------------------
| Sales, EUR 1,000 | 143,773 | 116,588 | 496,428 | 402,425 |
--------------------------------------------------------------------------------
| Operating profit before | 26,144 | 22,913 | 95,963 | 72,834 |
| amortisation on intangible | | | | |
| assets resulting from | | | | |
| acquisitions (EBITA) | | | | |
--------------------------------------------------------------------------------
| Operating profit (EBIT) | 25,131 | 21,821 | 91,844 | 68,569 |
--------------------------------------------------------------------------------
| Profit before tax (EBT) | 20,532 | 19,714 | 75,808 | 56,585 |
--------------------------------------------------------------------------------
| Profit for the period | 14,679 | 15,091 | 57,485 | 41,944 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share (EPS) | 0.51 | 0.53 | 2.00 | 1.50 |
| before amortisation on | | | | |
| intangible assets resulting | | | | |
| from acquisitions, diluted, | | | | |
| EUR | | | | |
--------------------------------------------------------------------------------
| Earnings per share (EPS), | 0.48 | 0.50 | 1.88 | 1.39 |
| undiluted, EUR | | | | |
--------------------------------------------------------------------------------
| Earnings per share (EPS), | 0.48 | 0.49 | 1.87 | 1.36 |
| diluted, EUR | | | | |
--------------------------------------------------------------------------------
| Equity per share, EUR | | | 10.88 | 9.66 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on equity, rolling | | | 18.4 | 15.5 |
| 12-month ROE, % | | | | |
--------------------------------------------------------------------------------
| Equity ratio, % | | | 37.3 | 38.2 |
--------------------------------------------------------------------------------
| Gearing, % | | | 109.4 | 104.6 |
--------------------------------------------------------------------------------
| Net interest-bearing | | | 364,985 | 305,643 |
| liabilities, EUR 1,000 | | | | |
--------------------------------------------------------------------------------
| Gross capital expenditure, | | | 175,494 | 111,864 |
| EUR 1,000 | | | | |
--------------------------------------------------------------------------------
| % of sales | | | 35.4 | 27.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average personnel | | | 2,270 | 1,828 |
--------------------------------------------------------------------------------
SUMMARY OF FINANCIAL PERFORMANCE IN 2007
The Cramo Group enjoyed a year of strong growth in 2007, while at the same time
the Group laid foundations for its future growth. All Cramo's business
activities were brought under one Cramo brand, and the Group's key processes and
policies were strongly unified.
Cramo's consolidated sales and operating profit before amortisation on
intangible assets resulting from corporate acquisitions (EBITA) continued to
develop favourably during the final quarter. Continuing high demand, the
expansion of the depot network and outsourcing agreement with Skanska in Denmark
boosted sales. The Group's strong pursuit of growth resulted in additional costs
particularly in Denmark, Norway and Other Europe, which affected profitability
to a certain extent in the final quarter.
Consolidated sales in 2007 totalled EUR 496.4 million. Compared to the previous
year (EUR 402.4 million), consolidated sales increased by 23.4 per cent. Sales
growth from continuing operations, i e, sales excluding the Dutch business
operations that were divested on 1 April 2007, amounted to 26.6 per cent.
Organic growth, including outsourcing agreements, was 24.1 per cent. Sales were
boosted by continuing favourable market conditions, a higher rental equipment
penetration rate, positive price developments, strong expansion through the
opening of new depots and through acquisitions, and successful equipment
investments. Cramo estimates that it has enhanced its position in most of its
markets in 2007.
EBITA in 2007 amounted to EUR 96.0 (72.8) million, accounting for 19.3 (18.1)
per cent of consolidated sales. EBITA increased by 31.8 per cent year on year.
Undiluted earnings per share came to EUR 1.88 (1.39) per share in 2007, up by
35.3 per cent on the previous year, and diluted earnings per share to EUR 1.87
(1.36), up by 37.5 per cent. Performance was enhanced by continuing favourable
demand and higher rental equipment penetration rates across all of Cramo's
market areas, and the synergy benefits from the combination of Rakentajain
Konevuokraamo and Cramo.
During the year, the Group's financial targets were raised and the dividend
policy was revised. Key events in terms of expansion included the opening of new
depots in Norway, Denmark and in Central and East Europe, the launch of a joint
venture in Russia, acquisitions in Finland, Sweden, Norway and Lithuania, and
outsourcing agreements in Finland and Denmark. A decision was made to expand the
modular space business to the Baltic countries. Significant future growth
markets for the Group include Russia, Poland and new Central and Eastern
European markets.
OUTLOOK FOR 2008
In spite of the instability of the financial markets and US economic
development, brisk demand for rental services is expected to continue in Cramo's
main markets. Growth in construction activity coupled with major infrastructure
projects in the industry and the public sector will continue to fuel growth in
the equipment rental business. Nordic construction is expected to continue its
growth, but at a slightly lower rate than in previous years. Although overall
growth in construction is hampered by the decline in residential construction,
industrial and commercial construction as well as civil engineering projects
will continue to grow. Central and Eastern Europe are expected to see sustained
strong growth in construction, although this growth is decelerating in the
Baltic countries. Equipment rental services will expand at a faster rate
compared to general growth in construction, due to factors such as increasing
penetration rates for these services, increased equipment outsourcing, and
growth in the demand for rental-related services. Continued growth is also
anticipated in the demand for modular space. This demand is supported by
relocations, demographic changes, and the industry's needs for increasingly
flexible building solutions.
Growing demand in all of the Group's main markets will require continued capital
expenditure growth in 2008.
In line with its strategy, the Group intends to further enhance its position in
all of its market areas. The Group will continue to map out its growth potential
in the Nordic countries and Central and Eastern Europe, with the objective of
being one of the top two service providers in each market. The supply of modular
space in Central and Eastern Europe is seen as a new growth opportunity.
Besides global economic development, the most significant uncertainties faced by
Cramo's business are associated with general cyclical and economic development
in each country, changes in interest and foreign-exchange rates as well as the
success of the Group's acquisitions. So far, the growing uncertainty in the
financial markets and the US economy have had little impact on Cramo's business.
The Group's internal, as well as market indicators support a sales growth above
18 % and EBITA above 18 % of sales in 2008, in line with the Group's financial
targets. However, macroeconomic development may change this picture.
SALES AND PROFIT
Cramo Plc is a service company specialising in equipment rental services, as
well as the rental and sale of modular space. Its equipment rental services
comprise construction machinery and equipment rentals and rental-related
services. These rental-related services include construction-site and
installation services. As one of the industry's leading service providers in the
Nordic countries and Central and Eastern Europe, Cramo Plc operates in Finland,
Sweden, Norway, Denmark, Estonia, Latvia, Lithuania, Poland, the Czech Republic
and Russia.
Cramo's consolidated sales and EBITA developed favourably throughout the year
2007.
Consolidated sales in the final quarter amounted to EUR 143.8 million. Compared
to the corresponding period last year (EUR 116.6 million), consolidated sales
increased by 23.3 per cent. Continuing high demand, the expansion of the depot
network and the Skanska outsourcing agreement in Denmark had a positive impact
on sales in the final quarter. Central and Eastern Europe continued to account
for the strongest sales growth.
The equipment rental business reported sales of EUR 122.3 million (97.7) in the
final quarter, while the modular space business recorded sales of EUR 22.4
million (19.2).
EBITA in the final quarter amounted to EUR 26.1 (22.9) million, accounting for
18.2 (19.7) per cent of sales. The Group's pursuit of strong growth resulted in
additional costs particularly in Denmark and Norway, which affected to a certain
extent the profitability in the final quarter. For the equipment rental
business, EBITA came to EUR 23.4 million (21.8) and for modular space business
EUR 5.3 (4.7) million.
Consolidated sales in 2007 totalled EUR 496.4 (402.4) million. Sales increased
by 23.4 per cent year on year. Sales growth of continuing operations, i.e.,
sales excluding the Dutch business operations that were divested on 1 April
2007, amounted to 26.6 per cent. Sales for the equipment rental business
amounted to EUR 425.9 (339.7) million in 2007 and for the modular space business
EUR 76.7 (65.5) million. Sales were boosted by continuing favourable market
conditions, a higher rental equipment penetration rate, positive price
development, strong expansion through the opening of new depots and through
acquisitions, and successful equipment investments.
EBITA in 2007 amounted to EUR 96.0 (72.8) million, accounting for 19.3 (18.1)
per cent of consolidated sales. EBITA increased by 31.8 per cent year on year.
Healthy demand, the growth in rental equipment utilisation rates, and the
synergy benefits derived from the combination of Rakentajain Konevuokraamo and
Cramo boosted profitability. The most significant synergy benefits came, as
targeted, from the rationalisation of overlapping operations, larger order
volumes in purchasing, the optimised production of modular space, and more
effective fleet management. In addition, all Cramo's business activities were
brought under one Cramo brand, and the Group's key processes and policies were
strongly unified using best practices.
EBITA for the equipment rental business amounted to EUR 90.0 (66.7) million, or
21.1 (19.6) per cent of sales, up by 35.0 per cent year on year. For the modular
space business, EBITA totalled EUR 19.4 (14.9) million, or 25.2 (22.8) per cent
of sales, up by 29.5 per cent year on year.
Consolidated operating profit (EBIT) for 2007 was EUR 91.8 (68.6) million,
representing 18.5 (17.0) of sales. Profit before tax in 2007 was EUR 75.8 (56.6)
million while profit for the year was EUR 57.5 (41.9) million. Undiluted
earnings per share were EUR 1.88 (1.39) and diluted earnings per share EUR 1.87
(1.36).
Profit for 2007 includes a EUR 4.0 million non-recurring capital gain from the
divestment of the Dutch business recognised in other operating income, and
expenses worth EUR 4.2 million and amortisations worth EUR 0.2 million
associated with the Cramo brand change. Option-related expenses totalled EUR 1.9
million in 2007.
Return on investment (rolling 12-month ROI) stood at 13.7 (11.7) per cent and
return on equity (rolling 12-month ROE) at 18.4 (15.5) per cent.
CAPITAL EXPENDITURE AND DEPRECIATION/AMORTISATION
Gross capital expenditure of EUR 175.5 (111.9) million was mainly allocated to
the purchase of rental equipment. Company acquisitions carried out during the
reporting period are not included in gross capital expenditure.
Reported depreciation on property, plant and equipment, and software totalled
EUR 62.4 (51.1) million. Amortisation on intangible assets resulting from
acquisitions totalled EUR 4.1 million. At the end of the period, goodwill
totalled EUR 152.4 million.
FINANCIAL POSITION AND BALANCE SHEET
The Group showed a positive net cash flow of EUR 138.7 (103.9) million from
operating activities. Net cash flow used in investing activities was EUR -175.2
(-96.3) million, while that used in financing activities amounted to EUR 13.7
(10.8) million. At the end of the period, cash and cash equivalents amounted to
EUR 18.5 (41.8) million, with the net change coming to EUR -22.8 (18.4) million.
On 31 December 2007, Cramo Group's gross interest-bearing liabilities totalled
EUR 383.5 (347.5) million. The Group has used interest-rate swaps of around EUR
138.4 million to hedge its non-current loans, and applies hedge accounting to
that amount. On 28 September 2007, Cramo signed an agreement for additional
long-term financing of EUR 50 million in order to finance its growth strategy.
On 31 December 2007, Cramo Group's net interest-bearing liabilities totalled EUR
365.0 (305.6) million with gearing at 109.4 (104.6) per cent.
Consolidated balance sheet total on 31 December 2007 stood at EUR 895.0 (770.9)
million and the equity ratio was 37.3 (38.2) per cent.
Property, plant and equipment amounted to EUR 487.0 million, with equipment
rental representing EUR 367.7 million, or 75.5 per cent, and modular space
representing EUR 119.3 million, or 24.5 per cent. Off-balance sheet operating
lease liabilities totalled EUR 54.2 (30.3) million on 31 December 2007.
Net working capital on 31 December 2007 amounted to EUR 28.0 million, with
equipment rental representing EUR 24.6 million, or 87.8 per cent, and modular
space representing EUR 3.4 million, or 12.2 per cent. Inventories amounted to
EUR 16.9 million, with modular space representing EUR 10.8 million, or 64.0 per
cent.
GROUP STRUCTURE
At the end of the reporting period, Cramo Group consisted of the parent company
Cramo Plc and its operating subsidiaries in Finland, Sweden, Norway, Denmark,
Estonia, Latvia, Lithuania and Poland, as well as Cramo Instant Oy's
subsidiaries in Finland and Suomen Tähtivuokraus Oy's subsidiaries in Poland,
the Czech Republic and Russia. In addition, Cramo Plc has a 75-per cent holding
in Cramo JV Oy, whose subsidiary in Russia is ZAO Cramo Rentakran. Cramo Instant
Oy operated under the name Tilamarkkinat Oy until 31 March 2007.
The Group's legal structure was simplified by taking measures such as reducing
the number of subsidiaries. On 1 April 2007, the parent company Cramo Plc's
equipment rental operations within Finland were transferred to Cramo Finland Oy,
a subsidiary wholly owned by the parent company. On the same date, the majority
of the Group's operating subsidiaries outside Finland were transferred under
Cramo Plc's direct ownership. Non-operating subsidiaries were closed down in
Sweden, and operating subsidiaries were combined. The Dutch operations were
discontinued on 1 April 2007 by selling Cramo Plc's Dutch subsidiary Cramo
Nederland B.V. to the Dutch Jaston Groep B.V.
Equipment rental services are provided through a network of 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 for 2007 was to fuel its international growth and to
improve profitability.
During the year, measures were taken to pursue the development work started on 1
January 2006 to exploit the synergies derived from the combination of
Rakentajain Konevuokraamo and Cramo's operations. Measures were taken to improve
the consistency and efficiency of the Group's internal processes and policies,
and to develop the Group's shared IT systems. To benefit from the synergies
between the business segments, a decision was made in September to combine the
operations and service ranges of equipment rental and modular space businesses,
giving the directors of geographic segments responsibility for both equipment
rental and modular space in their respective market areas. The objective is to
increase the sales of the modular space business, particularly in Norway,
Denmark, the Baltic countries and Poland.
Measures associated with the change in the Cramo brand were completed as planned
during the autumn. All of Cramo's subsidiaries and depots in different
countries now operate under the same Cramo brand. The objective is to develop
the total service provider concept further in the rental business, and to make
use of the synergy benefits derived from equipment rental and modular space
businesses.
On 9 November 2007, Cramo announced that it was exploring its opportunities to
sell its real estate facilities in Finland. After the potential sale, Cramo
would continue as a tenant in most of the properties placed for sale. The
possible sale is expected to take place in the first half of 2008.
In August, Cramo Plc's Board revised the Group's financial targets. The sales
growth target was increased from “more than 10 per cent” annually to “more than
18 per cent”. The EBITA target was increased from “more than 15 per cent” to
“more than 18 per cent” of sales. The return on equity (ROE) target was set to
“more than 22 per cent”, up from the equivalent of more than 18 per cent as
derived from the previous return on investment (ROI) target of “more than 13 per
cent”.
The Board confirmed that Cramo's strategic objectives are to rank among the two
largest industry players in each of its market areas, to develop into the
preferred supplier from the customer's perspective and to be one of the most
profitable companies in the industry. Growth is targeted through both organic
growth and acquisitions.
Acquisitions and divestments
In the final quarter, Cramo expanded its business operations in Sweden and
Denmark through acquisitions.
On 14 November 2007, Cramo's wholly-owned Swedish subsidiary Cramo Sverige AB
acquired the entire share capital of two companies specialising in access
equipment rental, Kumla Lift AB and Hyrcenter i Skövde AB. The estimated
aggregate sales of these two companies amounted to about EUR 3.2 million in
2007, and the companies have 11 employees. The acquisition took effect on 1
December 2007.
On 30 October 2007, Cramo and Skanska Denmark agreed on outsourcing Skanska's
rental machinery and equipment to Cramo in Denmark. The deal includes Skanska's
personnel, the existing machine fleet and the related external rental contracts.
This acquisition took effect on 1 November 2007. Cramo estimates that the
acquisition will increase its sales by at least EUR 13.5 million a year. The
integration of operations has convened as planned. The transaction includes a
cooperation agreement, the objective of which is to increase Cramo's rental
service provision to Skanska also in other Nordic countries.
In September, Cramo's Finnish subsidiary Cramo Finland Oy concluded an agreement
on outsourcing Rakennusosakeyhtiö Hartela's building site huts to Cramo. The
five-year agreement, covering approximately 200 site huts, is one of the first
outsourcing agreements in the industry in Finland.
In August, Cramo Plc and the leading heavy lifting rental service company in
Russia, ZAO Rentakran, agreed to establish a joint venture in Russia. While
Cramo Plc owns 75 per cent and ZAO Rentakran 25 per cent of the new company,
Cramo has an option to buy the minority share in the spring of 2011. The company
began operating in Moscow in November, and its expansion to other major Russian
cities such as Yekaterinburg and Kransnodar is scheduled to take place in 2008.
In June, Cramo Finland Oy acquired the rental and sales business of Oskarin
Vuokrakone Oy operating in the Jyväskylä region. The company's sales in the
12-month accounting period that ended on 28 February 2007 amounted to
approximately EUR 0.8 million. The business was consolidated with the Group on 1
July 2007.
On 1 June 2007, Cramo Plc's Estonian subsidiary Cramo Estonia AS acquired the
operations of Madara service office located in Tallinn, from the company Bygg &
Maskin. The service office's net sales in 2006 amounted to approximately EUR 0.1
million. The business was consolidated with the Cramo Group on 1 May 2007.
In May, Cramo Finland Oy acquired the equipment rental business of JM-Alltrans
Oy. JM-Alltrans is based in Kirkkonummi, Finland, and specialises in the rental
of small earth construction equipment. Its sales in 2006 amounted to
approximately EUR 1.1 million. The business was consolidated with the Cramo
Group on 1 May 2007.
In March, Cramo Sverige AB, the Swedish wholly-owned subsidiary of Cramo Plc,
signed an agreement to acquire the entire share capital of Göby AB, a rental
service company based in Sundsvall in the north of Sweden. Göby specialises in
the rental of site huts, work platforms and electricity equipment. The company's
sales in 2006 amounted to approximately EUR 3.5 million. Göby's two depots in
Sundsvall were integrated with Cramo as of 1 May 2007.
On 1 March 2007, Cramo Plc acquired the rental and sales business of Jyväskylän
Konevuokraamo Oy. Jyväskylän Konevuokraamo has one depot, and the acquired
business was consolidated into the Cramo Group on 1 March 2007.
In Norway, Cramo expanded its operations with two business acquisitions in early
2007. Cramo's Norwegian subsidiary Cramo AS acquired the entire share capital of
Hamar Liftutleie AS on 2 January 2007, and of Kongsberg Maskinutleie AS on 4
January 2007. The aggregate sales of these companies in 2006 amounted to
approximately EUR 2.65 million. Both companies were consolidated into the Cramo
Group as of 1 January 2007. Similarly, Lithuania's leading lifting equipment
rental company UAB Aukstumines Sistemos (AS), acquired by Cramo's Lithuanian
subsidiary UAB Cramo in December 2006, was consolidated into the Cramo Group on
1 January 2007.
In March, Cramo divested its Dutch operations. With an agreement dated on 21
March 2007, Jaston Groep B.V. acquired the Group's Dutch subsidiary Cramo
Nederland B.V. The acquisition took effect on 11 April 2007. Cramo Nederland is
a general equipment rental company active in the Dutch rental market with sales
amounting to approximately EUR 12.6 million in 2006, and a staff of 90. This
divestment of the Dutch operations is in line with the Group's strategy of
focusing on its core Nordic markets, and its emerging Central and Eastern
European equipment rental services markets.
HUMAN RESOURCES
During the reporting period, Group staff averaged 2,270 (1,828). The equipment
rental business had an average of 2,031 (1,634) employees and the modular space
business 239 (194) employees. The divestment of the Dutch operations involved
the loss of 90 employees.
The geographical distribution of personnel is as follows: Finland 34.5%, Sweden
28.8%, Western Europe 13.5%, and Other Europe 23.2%.
The Group's strong growth requires the continuous development of staff skills.
In 2007, human resources development focused on local needs in the market areas.
Priority areas included sales and customer service skills and supervisory skills
improvement, as well as mastering the technical skills related to rental
equipment. More attention will be paid to targeting human resources development
programmes more clearly to the entire Group personnel. In 2007, the management
and personnel compensation systems were harmonised, and the bonus system was
extended to cover almost the entire personnel.
GROUP MANAGEMENT
At the year-end, the Group's Executive Committee comprised Vesa Koivula,
President and CEO, Göran Carlson, Deputy CEO, and Martti Ala-Härkönen, CFO. The
Group Management Team further consisted of Senior Vice Presidents Tatu Hauhio
(Finland), Magnus Rosén (Scandinavia), Jarmo Laasanen (Other Europe) and Ossi
Alastalo (Modular Space), as well as Anders Collman, VP Marketing and
Communications, Mats Stenholm, VP Fleet Management, and Eva Harstöm, CIO.
The Group's deputy CEO Göran Carlson was appointed responsible Director for
business development and strategic planning as of 1 January 2008. Göran Carlson
will continue as deputy CEO and report to CEO Vesa Koivula. Senior Vice
President, Scandinavia, who previously reported to Göran Carlson, will now
report directly to CEO Vesa Koivula.
PERFORMANCE BY BUSINESS SEGMENT
Cramo Plc's business consists of the following two business segments: equipment
rental and modular space. The equipment rental business segment is also reported
by geographic segment as follows: Finland, Sweden, Western Europe (Norway,
Denmark and until 1 March 2007 the Netherlands) and Other Europe (Estonia,
Latvia, Lithuania, Poland, the Czech Republic and Russia).
Equipment rental
The equipment rental business reported sales of EUR 425.9 (339.7) million in
2007, showing an increase of 25.4 per cent. Sales by geographic segment were as
follows: Finland 17.8 (17.7), Sweden 50.4 (51.5), Western Europe 18.2 (19.5) and
Other Europe 13.6 (11.3) per cent.
EBITA for equipment rental business amounted to EUR 90.0 (66.7) million, up by
35.0 per cent.
The business segment's major customers operate in the construction sector and
manufacturing industry. In addition, the segment provides services to the public
sector and private customers. The construction industry is the largest group of
customers, representing almost 60 per cent of sales on average in the Nordic
countries. In Central and Eastern Europe, the construction industry accounted
for approximately 90 per cent of sales.
According to the ERA (European Rental Association), the volume of the equipment
rental market in 2006 amounted to approximately EUR 350 million in Finland, EUR
600 million in Sweden, EUR 600 million in Norway, EUR 450 million in Denmark,
EUR 110 million in Poland, EUR 50 million in the Czech Republic, EUR 45 million
in Estonia, EUR 40 million in Latvia and EUR 30 million in Lithuania.
Finland
The equipment rental business in Finland reported sales of EUR 75.8 (60.2)
million in the review period, showing an increase of 25.8 per cent. EBITA
totalled EUR 14.5 million, or 19.1 (17.2) per cent of sales, up by 39.8 per cent
year on year. Healthy demand, Cramo's acquisitions and the successful
reorganisation of its operations contributed to increased sales and
profitability.
Sales in the final quarter totalled EUR 20.9 (15.8) million, showing an increase
of 32.5 per cent. EBITA in the final quarter amounted to EUR 4.2 (1.9) million,
accounting for 19.9 (12.3) per cent of sales. Sales and profitability grew in
the final quarter in line with the targets.
Cramo is one of the leading two players in the Finnish equipment rental markets.
There is also a large number of small and specialised competitors in Finland.
Cramo estimates that its market share grew, especially in the second half of the
year. In the final quarter, an asset transfer agreement was signed with Sisu
Diesel Oy on the procurement of diesel generators.
During the period, a network of logistics centres was under construction to
improve heavy equipment transport and maintenance, and the first logistics
centre outside the Helsinki region was opened in Oulu. The objective is to build
a nation-wide network during 2008. A strong emphasis was also placed on
improving the personnel's sales and customer service skills.
Based on forecasts published by the Federation of Finnish Construction
Industries (RT) in October, Finnish construction will grow by five per cent in
2007, which is much higher than the 2.5 growth forecast published in the first
half of the year. Civil engineering projects grew more strongly in 2007 than was
anticipated. RT estimates that total construction growth in 2008 will be about
three per cent and predicts that housing construction will grow by about six per
cent in 2007 and by three per cent in 2008. Commercial construction is expected
to remain very active, as is civil engineering. Renovation is expected to show
steady continued growth.
Sweden
In Sweden, the equipment rental business recorded sales of EUR 214.5 (174.7)
million in the review period, showing an increase of 22.8 per cent. EBITA
totalled EUR 48.0 million (35.9), or 22.4 (20.5) per cent of sales, up by 33.7
per cent year on year.
Sales in the final quarter grew by 16.5 percent to EUR 60.2 (51.6) million, and
EBITA totalled EUR 12.6 (12.0) million, or 21.0 (23.2) per cent of sales.
Sales in the Swedish rental business continued to develop favourably during the
period. Demand has been strong in Sweden, and the good full-year result was also
affected by successful investments in the development of the equipment fleet,
the depot network and service concepts. Price development during the year was
also favourable, and the rental fleet utilisation rate continued to be high at
the year-end. In the final quarter, costs associated with the development of the
maintenance and logistics network, subrental costs and as well as the annual
maintenance of heavy equipment somewhat strained the financial performance.
During 2007, Cramo also focused on sharpening its future competitive edge in
Sweden. A new logistics centre was opened to optimise heavy equipment transport
and maintenance, and light machinery maintenance was centralised in one national
maintenance centre.
Cramo is the leading equipment rental company in the Swedish market. Competitors
include one national player, a few regional players, and a large number of
local, partly specialised rental firms. Cramo estimates that it has increased
its market share, particularly in Northern Sweden as well as in Stockholm and
Gothenburg.
In December, the Swedish Construction Federation (Sveriges Byggindustrier)
estimated the construction growth rate in 2007 at approximately seven per cent.
According to the same forecast, this growth will stabilise at four per cent in
2008. The Swedish Construction Federation estimates that residential
construction and civil engineering projects accounted for the strongest growth
in the review period. The focus of growth is expected to shift from residential
construction to other construction in 2008. The availability of labour and
equipment may continue to hold back growth.
Western Europe
Cramo's equipment rental business in Western Europe covers its Norwegian and
Danish operations. Unless stated otherwise, the comparison figures for last year
and the first quarter of 2007 include the Dutch business that Cramo divested on
1 April 2007. The capital gain of EUR 4.0 million from the Dutch business is
recognised in other operating income and included in the EBITA for Western
Europe.
In Western Europe, the equipment rental business reported sales of EUR 77.5
(66.3) million in the review period, showing an increase of 16.8 per cent.
EBITA totalled EUR 10.5 (8.4) million, or 13.6 (12.7) per cent of sales, up by
24.5 per cent year on year. Sales in Western Europe excluding the Netherlands
were up by 38.7 per cent and totalled EUR 74.5 (53.7) million. EBITA excluding
the Netherlands and the capital gain from the sale of the Dutch rental
operations came to EUR 6.2 (7.6) million.
Final quarter sales in Western Europe excluding the Netherlands were up by 53.6
per cent and totalled EUR 23.1 (15.1) million. Sales growth reflects the
outsourcing of Skanska's rental business in Denmark as of 1 November 2007. EBITA
excluding the Netherlands totalled EUR 1.7 (2.8) million, or 7.4 (18.9) per cent
of sales. The performance in the final quarter was affected by costs from the
fast opening of new depots in Denmark and Norway, while also the takeover of
Skanska's rental business burdened the result.
Full-year sales were boosted by brisk demand and increased use of rental
services as well as the strong expansion of the depot network and the
acquisitions made in Norway early in the year. The opening of several new depots
had a negative impact on profitability in Norway and Denmark in 2007. At the
year-end, Cramo had 26 (19) depots in Norway and 17 (10) in Denmark.
Business expansion progressed in line with targets in both countries. Norwegian
equipment rental markets are dominated by one clear market leader, a few
mid-sized companies and several small local rental firms. Cramo estimates that
in terms of its market position, it is the third largest service provider in
Norway. The Danish equipment rental market saw significant consolidation during
2007. In this new competitive environment, Cramo's strong organic growth and the
Skanska outsourcing agreement helped it strengthen its competitive position.
According to company estimates, Cramo is the fourth largest service provider in
Denmark.
Cramo intends to continue its expansion in Norway and Denmark in 2008, but the
target is also to improve profitability. Development work will focus on Cramo's
total service provider concept and on tapping into the synergies generated
between the equipment rental and modular space businesses.
In November, Euroconstruct estimated that construction would grow by 5.9 per
cent in Norway in 2007 but by only 0.6 per cent in 2008. Extensive
infrastructure projects involving Cramo, especially projects in the energy
sector, will continue. According to Euroconstruct's estimate, construction
declined in Denmark by 1.2 per cent in 2007 but will recover to a 0.5 per cent
growth track in 2008. Construction in Denmark is expected to recover, with the
exception of residential construction in the Copenhagen region.
Other Europe
Cramo Group's equipment rental business' sales in Other Europe come from
Estonia, Latvia, Lithuania, Poland, the Czech Republic and Russia.
The equipment rental business in Central and Eastern Europe reported sales of
EUR 58.2 (38.4) million in the review period, up by 51.4 per cent. EBITA
totalled EUR 17.1 (12.0) million, or 29.3 (31.2) per cent of sales. EBITA
increased 42.5 per cent. Sales in the final quarter totalled EUR 18.1 (11.7)
million, representing an increase of 55.3 per cent. EBITA amounted to EUR 4.9
(4.6) million, or 27.2 (39.3) per cent of sales.
Equipment rental operations in Central and Eastern Europe developed favourably
in 2007. Demand for rental services was fuelled by booming construction and a
rising rental penetration rate as international construction companies expanded
their activities in Central and Eastern Europe. The strong growth of civil
engineering projects in Poland, Russia and Latvia boosted demand for heavy
equipment in particular. Demand for site huts picked up considerably in all
markets. Profitability in the final quarter was somewhat affected by the
expansion of the business, and was lower than the exceptional level a year ago.
Cramo's equipment utilisation rate remained high throughout the year, and the
company increased its investments. During the period, Cramo diversified its
service range and also focused on improving its delivery reliability, since
service quality has become an increasingly important competitive factor in
Central and Eastern Europe. Sales and customer service training as well as
supervisor coaching programmes launched during the year will continue, and the
full-service concept will be further developed.
Cramo estimates that it has increased its market share in all Central and
Eastern European markets during the year. The size of the depot network grew
from 38 to 55. In Estonia, Cramo continues to be the market leader. In Lithuania
Cramo attained market leadership, and in Latvia it is the third largest rental
service provider. In Poland and in the St. Petersburg region in Russia, Cramo is
among the top three providers.
In Russia, Cramo strengthened its presence in St. Petersburg through a renewed
organisation, larger service range, and focus on customer relationships. The
first depot in Moscow was opened in November, and the opening of new depots in
Yekaterinburg and Krasnodar is scheduled for 2008. The joint venture established
at the end of 2007, ZAO Cramo Rentakran, will offer Cramo good opportunities for
future expansion across Russia.
Cramo's target is to achieve an annual sales growth of more than 50 per cent in
Central and Eastern Europe in the next few years.
Euroconstruct's November estimate of the construction market growth in Russia in
2007 was 10.4 per cent, with 9.5-per cent growth expected in 2008. Sectors
showing growth in Russia include road construction and civil engineering as well
as residential and commercial construction. According to the estimate of the VTT
Technical Research Centre of Finland, construction in the Baltic countries grew
by approximately 13-19 per cent in 2007, but growth is expected to slow down to
2-8 per cent in 2008, primarily due to slower residential construction.
According to an estimate prepared by VTT for Euroconstruction, the Polish market
grew by 13.1 per cent in 2007 and the growth estimate for 2008 is 15.2 per cent.
The growth rate in Poland is driven by major infrastructure projects. According
to the same estimate, growth in the Czech construction markets was six per cent
in 2007 and was expected to be 3.7 per cent in 2008.
MODULAR SPACE
The modular space business reported sales of EUR 76.7 (65.5) million in the
review period. Sales were up by 17.1 per cent. EBITA totalled EUR 19.4 (14.9)
million, or 25.2 (22.8) per cent of sales, showing an increase of 29.5 per cent.
Sales of the modular space business increased by 16.9 per cent in the final
quarter to EUR 22.4 (19.2) million. EBITA amounted to EUR 5.3 (4.7) million,
representing 23.7 (24.8) per cent of sales. A large number of sales contracts
were signed in the final quarter, which had a positive impact on sales.
Strong demand for Cramo's modular space solutions continued. Modular space
utilisation rates remained high, as did the order book value for rental year on
year, while the order book value for sales was lower than a year earlier. As
defined in its strategy, Cramo will focus more sharply on long-term rental
services for modular space in the future, and believes that rental periods will
become longer.
A positive sales development and good financial performance in 2007 could be
attributed to healthy demand as well as increased production capacity, better
sales margins and the upward trend in prices, as well as effective fleet
management.
The vast majority of sales in the modular space business are generated in the
Finnish and Swedish markets. There are also operations in Norway and Denmark.
While the Finnish operations involve the rental, sale and manufacture of modular
space, the Swedish, Norwegian and Danish operations cover only their rental.
Rental operations account for more than 70 per cent of sales.
With a market share of some 80 per cent, Cramo has been the unrivalled Finnish
market leader for a long time. However, competition will intensify, since a
major international competitor has began operating in Finland and in Central and
Eastern Europe. In Sweden, there are four major providers of modular space
solutions, with Cramo holding a market share of about 30 per cent. There are a
few large providers of modular space in Norway, and several relatively small
providers in Denmark. Cramo estimates that it has been able to increase its
market share in Norway to about 30 per cent. Meanwhile, in Denmark, Cramo's
market share is currently fairly small.
The operations and service ranges of equipment rental and modular space
businesses were combined in the autumn, giving the directors of geographic
segments responsibility for both modular space as well as equipment rental in
their respective market areas. The objective was to increase the synergy
benefits between modular space and equipment rental, and to increase sales for
the modular space business, particularly in Norway, Denmark, the Baltic
countries and Poland.
The objective in 2008 is to maintain a high utilisation rate in Finland and
Sweden, and to increase market shares in Norway and Denmark. Cramo will launch a
modular space business in the Baltic countries.
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. In particular, the public sector showed an increasing need for new
premises as the result of heavy relocation. The public sector and industry both
represent approximately 45 per cent of the sales of the modular space business,
and the construction industry about 10 per cent.
SALES BY GEOGRAPHIC SEGMENT
Cramo Group's secondary segment reporting format is based on geographic
segments. Finland generated EUR 113.4 (91.7) million or 22.4 (22.5) per cent of
total consolidated sales, Sweden EUR 248.5 (206.1) million or 49.2 (50.7) per
cent, Western Europe EUR 85.2 (70.8) million or 16.9 (17.4) per cent and Other
Europe EUR 58.3 (38.5) million or 11.5 (9.4) per cent. These figures include
both the equipment rental business and the modular space business.
RISK MANAGEMENT
The Cramo Group adopted a new risk management policy in 2007. The objective of
risk management is to ensure that the Group identifies its business-related
risks, and assesses and monitors them on an ongoing basis. Risk management
refers to continuous and systematic activities aimed at preventing personal
injuries, safeguarding the assets of the Cramo Group, and ensuring a steady and
profitable business growth. As part of its risk management policy, Cramo adopted
internal and external indicators for assessing future market developments. The
Group monitors these indicators on a monthly basis by country. The Group
Management Team also defined and prioritised the Group's main risks. To manage
these main risks, action plans and risk indicators were developed, and a
contingency plan was devised for a potential economic downturn.
The Group also adopted renewed corporate governance guidelines and a new
treasury policy in 2007.
ENVIRONMENT
Environmental responsibility is an increasingly important part of Cramo's
business model. Cramo's environmental responsibility includes ensuring that its
rental equipment and modular space solutions are of high quality and carefully
serviced and overhauled. The environmental load caused by equipment manufacture
and use is a key criterion in purchasing. Long equipment service life is ensured
through careful maintenance. Cramo's processes in Sweden, Denmark and Norway are
based on the ISO 14001 environmental certificate and the ISO 9001 quality
management system certificate. In Finland, the Group's quality management system
is based on the ISO 9001:2000 quality management certificate granted by Det
Norske Veritas.
The Group aims to minimise environmental harm by recycling equipment and modular
space solutions from one user to another. It also seeks to reduce environmental
load by handing its equipment to customers fully tested and without unnecessary
packaging. Regional profit centres are responsible for the appropriate storage
and reprocessing of chemicals and hazardous waste. All material from equipment
going out of use is recycled as effectively as possible. The Group also seeks to
reduce the environmental load of construction by maintaining high utilisation
rates for its equipment.
SHARES, SHARE CAPITAL AND SUBSCRIPTIONS WITH STOCK OPTIONS
On 31 December 2007, Cramo Plc had a share capital of EUR 24,834,753.09 and the
total number of shares was 30,660,189. No changes occurred in the share capital
or total number of shares during the period.
Share capital and the number of shares were increased during the year as
follows:
A total of 362,596 Cramo shares were subscribed with 2002A/B stock options
rights between January and March. The resulting increases of the share capital,
a total of EUR 293,702.76, were entered into the Trade Register on 8 March, 12
April and 8 May 2007. Trading in the shares on the OMX Nordic Exchange in
Helsinki began on 9 March, 13 April and 9 May 2007.
Subscriptions for 74,551 shares under Cramo's 2002A/B option scheme were
approved in April-June. A share capital increase amounting to EUR 54,067.50, due
to share subscriptions, was registered in the Trade Register on 12 April 2007.
This increased the share capital to EUR 24,828,515.28 and the number of shares
to 30,652,488. The new shares have been traded on the OMX Nordic Exchange since
13 April 2007. A share capital increase amounting to EUR 6,237.81 was registered
in the Trade Register on 8 May 2007, and the new shares have been traded since 9
May 2007.
The subscription period under the stock option scheme established by the Annual
General Meeting on 4 April 2002 expired on 31 March 2007. The 2002 stock option
scheme involved issuing 670,000 stock options to the company's key personnel,
which entitled them to subscribe for 670,000 Cramo Plc shares. The maximum
increase in share capital resulting from the option scheme was EUR 1,132,300.00.
The actual increase was EUR 1,132,279.70. The share subscription price was the
trading-weighted average price of the company's B share between 5 April and 4
June 2002 plus 10 per cent, in other words EUR 5.27, deducted by the dividends
to be distributed before share subscription on the record date. As a result of
dividend payment, the subscription price was decreased by EUR 0.50 on 7 April
2003, by EUR 0.50 on 7 April 2004, by EUR 0.30 on 13 December 2004, by EUR 0.25
on 11 April 2005 and on 11 April 2006, resulting in a subscription price of EUR
3.47 per share. The B stock options associated with the 2002 stock option scheme
have been listed for trading together with the 2002 A stock options since 2 May
2006.
VALID OPTION SCHEMES
The Extraordinary General Meeting held on 20 November 2006 decided on an option
scheme under which 3,000,000 stock options will be issued, entitling their
holders to subscribe for a maximum of 3,000,000 new shares in the company. The
subscription period for stock options 2006A is from 1 October 2009 to 31 January
2011, for options 2006B from 1 October 2010 to 31 January 2012, and for 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 price of
the Cramo Plc share between 1 and 31 October 2006. Subscription price for stock
options 2006B is the trading-weighted average share price between 1 and 31
October 2007, or EUR 26.47, and for stock options 200C the trading-weighted
average share price between 1 and 31 October 2008. Annual dividends will be
deducted from the subscription price.
On 31 December 2007, Cramo Group's key personnel held a total of 813,000 2006A
stock options and 904,000 2006B stock options. The 2006 option scheme covers
approximately 80 key persons of the Group.
TRADING OF SHARES ON THE OMX NORDIC EXCHANGE 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 to 31 December 2007, the lowest price of a
Cramo Plc share was EUR 16.75 and the highest was EUR 38.80. Trading-weighted
average share price was EUR 26.66. The closing price on 28 December 2007 was EUR
17.32 and the company's market value EUR 531.0 million.
ANNUAL GENERAL MEETING
Cramo Plc's Annual General Meeting (AGM) of 18 April 2007 discussed the matters
assigned to the AGM in the Articles of Association, and approved the financial
statements of the company and the Group for 2006.
Based on the proposal of the Board of Directors, the AGM decided that a dividend
of 0.50 EUR per share be distributed. The AGM discharged the members of the
Board of Directors and the President and CEO from liability for the financial
year 2006.
The AGM re-elected Gunnar Glifberg, Stig Gustavson, Eino Halonen, Hannu Krogerus
and Juhani Nurminen to the Board of Directors. Esko Mäkelä was elected as a new
member to the Board. Esko Mäkelä (M.Sc. Eng., MBA) served as the Executive Vice
President and CFO of YIT Corporation between 1987 and 2006.
The AGM elected Tomi Englund, Authorised Public Accountant, and the auditing
firm Ernst & Young Oy as the company's auditors.
VALID BOARD AUTHORISATIONS
The Board has no valid authorisations to issue stock options, convertible bonds,
increase share capital or buy back treasury shares.
CORPORATE GOVERNANCE AND AUDITORS
As of 19 April 2007, Cramo Plc's Board of Directors consists of Stig Gustavson
(Chairman), Eino Halonen (Vice Chairman), Gunnar Glifberg, Hannu Krogerus,
Juhani Nurminen and Esko Mäkelä.
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 and Juhani Nurminen
are deemed independent of the company and its major shareholders. Gunnar
Glifberg is deemed independent of major shareholders, but as the former
President and CEO of Cramo AB until the autumn of 2005, he is deemed dependent
of the company until the autumn of 2008. Eino Halonen is independent of the
company but as the President and CEO of Suomi Mutual Life Assurance Company he
is dependent of major shareholders until 31 December 2007.
The Board members until 18 April 2007 were Gunnar Glifberg, Stig Gustavson, Phil
van Haarlem, Eino Halonen, Pekka Heusala, Hannu Krogerus and Juhani Nurminen.
Until 18 April 2007, the Audit Committee members were Pekka Heusala (Chairman),
Eino Halonen and Phil van Haarlem. Members of the Nomination and Compensation
Committee were Stig Gustavson (Chairman), Pekka Heusala and Hannu Krogerus. All
Board members except for Gunnar Glifberg are independent of the company.
Glifberg, Gustavson, Heusala, Nurminen, Krogerus and Phil van Haarlem are
independent of major shareholders.
In 2007, the Board met nine times, the Audit Committee four times, and the
Nomination and Compensation Committee three times.
On 31 December 2007, the Board members, the President and CEO, and his deputy
held, either directly or through companies in which they exercise control, a
total of 111,549 Cramo Plc shares, representing 0.36 per cent of the company's
shares and votes, and a total of 0 stock options.
The company's auditors were Tomi Englund, Authorised Public Accountant, and
Ernst & Young Oy Authorised Public Accountants, with Erkka Talvinko as the main
responsible auditor.
Cramo Plc observes the Corporate Governance Recommendation for Listed Companies
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, as well as the insider guidelines
of the Helsinki Stock Exchange effective since 1 January 2006. Finnish Central
Securities Depository Ltd maintains an insider register of Cramo Plc's permanent
insiders, whose holdings are also available on Cramo Plc's website.
CHANGES IN SHAREHOLDINGS
During the review period, Cramo received a notification pursuant to chapter 2,
section 9 of the Securities Market Act from Fidelity International Limited
stating that the number of shares held directly by Fidelity International
Limited and by its directly or indirectly owned subsidiaries in Cramo Plc had
fallen below the five per cent limit on 14 November 2007. After the
notification, the company held 1,520,760 shares, which represents 4.96 per cent
of Cramo Plc shares and votes.
On August 22 2007, Fidelity International Limited notified Cramo that shares
held directly by Fidelity International Limited and by its directly or
indirectly owned subsidiaries in Cramo Plc had exceeded the five per cent limit
on 16 August 2007. After the notification, the company held 1,587,777 shares,
which represents 5.18 per cent of Cramo Plc shares and votes.
On 11 July 2007, Suomi Mutual Life Assurance Company notified Cramo Plc that its
shareholding in Cramo Plc had lowered to less than one-tenth on 11 July 2007.
Following this notification, the company held 3,027,658 shares, accounting for
9.87 per cent of Cramo Plc shares and votes.
On 17 April 2007, Suomi Mutual Life Assurance Company notified Cramo Plc that
its shareholding in Cramo Plc had lowered to less than three twentieths on 16
April 2007. Following this notification, the company held 4,590,440 shares,
accounting for 14.98 per cent of Cramo Plc shares and votes.
PROFIT DISTRIBUTION POLICY AND THE BOARD OF DIRECTORS' PROPOSAL FOR PROFIT
DISTRIBUTION
In February 2007, the Board of Directors specified the company's new profit
distribution policy as follows: “Cramo Plc's profit distribution goal is to
distribute around a third of the Group's annual profit in terms of share
buybacks and/or dividends. The target is to maintain a steadily improving flow
of dividends, however while taking into account the Group's investment
requirements for growth.”
The Board of Directors proposes to the Annual General Meeting that a dividend of
EUR 0.65 per share be paid for the financial year 1 January - 31 December 2007.
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.
EVENTS AFTER THE BALANCE SHEET DATE
On 10 January 2008, Cramo announced an agreement between its Swedish subsidiary
Cramo Sverige AB and Skanska Sverige AB making Cramo Skanska's preferred
supplier of lifting equipment. At this stage, the agreement applies to Sweden,
but it may be extended to cover Skanska's other Nordic companies. The
contracting parties estimated the annual volume of the agreement to be in the
region of EUR 6.5 million.
Magnus Rosén, Senior Vice President for the Scandinavian operations, announced
his resignation on 14 January 2008.
On 21 January 2008, UBS AG notified Cramo that shares held by 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, accounting for 5.47 percent of Cramo Plc shares and votes.
OUTLOOK FOR 2008
In spite of the instability of the financial markets and US economic
development, brisk demand for rental services is expected to continue in Cramo's
business environment. Growth in construction activity coupled with major
infrastructure projects in industry and the public sector will continue to fuel
growth in the equipment rental business. Nordic construction is expected to
continue its growth, but at a slightly lower rate than in previous years.
Although overall growth in construction is hampered by the decline in
residential construction, industrial and commercial construction as well as
civil engineering projects will continue to grow. Central and Eastern Europe
are expected to see sustained strong growth in construction, although this
growth is decelerating in the Baltic countries. Equipment rental services will
expand at a faster rate compared to general growth in construction, due to
factors such as increasing penetration rates for these services, increased
equipment outsourcing, and growth in the demand for rental-related services.
Continued growth is also anticipated in demand for modular space. This demand is
supported by relocations, demographic changes, and industry needs for
increasingly flexible building solutions.
Growing demand in all of the Group's main markets will require continued capital
expenditure growth in 2008.
In line with its strategy, the Group intends to further enhance its position in
all of its market areas. The Group will continue to map out its growth potential
in the Nordic countries and Central and Eastern Europe, with the objective of
being one of the top two service providers in each market. The supply of modular
space in Central and Eastern Europe is seen as a new growth opportunity.
Besides global economic development, the most significant uncertainties faced by
Cramo's business are associated with general cyclical and economic development
in each country, changes in interest and foreign-exchange rates as well as the
success of the Group's acquisitions. So far, the growing uncertainty in the
financial markets and the US economy has had little impact on Cramo's business.
The Group's internal, as well as market indicators support a sales growth above
18 % and EBITA above 18 % of sales in 2008, in line with the Group's financial
targets. However, macroeconomic development may change this picture.
The data in this Interim 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 to be significant on Cramo's financial figures.
--------------------------------------------------------------------------------
| CONSOLIDATED BALANCE SHEET | 31.12.07 | 31.12.06 |
| (EUR 1,000) | | |
--------------------------------------------------------------------------------
| ASSETS | | |
--------------------------------------------------------------------------------
| NON-CURRENT ASSETS | | |
--------------------------------------------------------------------------------
| Property, plant and equipment | 487,038 | 367,950 |
--------------------------------------------------------------------------------
| Goodwill | 152,367 | 152,802 |
--------------------------------------------------------------------------------
| Other intangible assets | 95,359 | 95,452 |
--------------------------------------------------------------------------------
| Available-for-sale investments | 332 | 320 |
--------------------------------------------------------------------------------
| Receivables | 3,954 | 559 |
--------------------------------------------------------------------------------
| Deferred income tax assets | 2,974 | 2,423 |
--------------------------------------------------------------------------------
| TOTAL NON-CURRENT ASSETS | 742,024 | 619,506 |
--------------------------------------------------------------------------------
| CURRENT ASSETS | | |
--------------------------------------------------------------------------------
| Inventories | 16,903 | 15,788 |
--------------------------------------------------------------------------------
| Trade and other receivables | 117,548 | 93,779 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 18,489 | 41,823 |
--------------------------------------------------------------------------------
| TOTAL CURRENT ASSETS | 152,940 | 151,390 |
--------------------------------------------------------------------------------
| TOTAL ASSETS | 894,964 | 770,896 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | | |
--------------------------------------------------------------------------------
| EQUITY | | |
--------------------------------------------------------------------------------
| Share capital | 24,835 | 24,508 |
--------------------------------------------------------------------------------
| Share issue | | 143 |
--------------------------------------------------------------------------------
| Share premium fund | 186,910 | 185,836 |
--------------------------------------------------------------------------------
| Fair value reserve | 117 | 117 |
--------------------------------------------------------------------------------
| Hedging fund | 6,334 | 3,301 |
--------------------------------------------------------------------------------
| Translation differences | -1,867 | 2,818 |
--------------------------------------------------------------------------------
| Retained earnings | 117,351 | 75,521 |
--------------------------------------------------------------------------------
| TOTAL EQUITY | 333,680 | 292,244 |
--------------------------------------------------------------------------------
| RESERVES | | |
--------------------------------------------------------------------------------
| Reserves | 363 | 348 |
--------------------------------------------------------------------------------
| NON-CURRENT LIABILITIES | | |
--------------------------------------------------------------------------------
| Deferred income tax liabilities | 62,200 | 51,829 |
--------------------------------------------------------------------------------
| Interest bearing liabilities | 274,087 | 306,968 |
--------------------------------------------------------------------------------
| CURRENT LIABILITIES | | |
--------------------------------------------------------------------------------
| Trade and other payables | 115,247 | 79,008 |
--------------------------------------------------------------------------------
| Interest bearing liabilities | 109,387 | 40,499 |
--------------------------------------------------------------------------------
| TOTAL LIABILITIES | 560,921 | 478,304 |
--------------------------------------------------------------------------------
| TOTAL EQUITY AND LIABILITIES | 894,964 | 770,896 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED INCOME STATEMENT | 10-12/07 | 10-12/06 | 1-12/07 | 1-12/06 |
| 1 January - 31 December 2007 | | | | |
| (EUR 1,000) | | | | |
--------------------------------------------------------------------------------
| SALES | 143,773 | 116,588 | 496,428 | 402,425 |
--------------------------------------------------------------------------------
| Other operating income | 367 | 2,142 | 7,798 | 3,507 |
--------------------------------------------------------------------------------
| Change in inventories in | -2,003 | -954 | 966 | -184 |
| finished goods and in work in | | | | |
| progress | | | | |
--------------------------------------------------------------------------------
| Production for own use | 4,922 | 2,950 | 15,379 | 7,754 |
--------------------------------------------------------------------------------
| Materials and services | -31,523 | -20,479 | -106,396 | -74,256 |
--------------------------------------------------------------------------------
| Employee benefits | -27,174 | -22,924 | -101,608 | -83,773 |
--------------------------------------------------------------------------------
| Depreciation | -17,237 | -13,581 | -62,356 | -51,060 |
--------------------------------------------------------------------------------
| Amortisation on intangible | -1,013 | -1,092 | -4,119 | -4,265 |
| assets resulting from | | | | |
| acquisitions | | | | |
--------------------------------------------------------------------------------
| Other operating expenses | -44,981 | -40,829 | -154,248 | -131,579 |
--------------------------------------------------------------------------------
| OPERATING PROFIT | 25,131 | 21,821 | 91,844 | 68,569 |
--------------------------------------------------------------------------------
| % of sales | 17.5 | 18.7 | 18.5 | 17.0 |
--------------------------------------------------------------------------------
| Finance costs (net) | -4,599 | -2,107 | -16,036 | -11,984 |
--------------------------------------------------------------------------------
| PROFIT BEFORE TAXES | 20,532 | 19,714 | 75,808 | 56,585 |
--------------------------------------------------------------------------------
| % of sales | 14.3 | 16.9 | 15.3 | 14.1 |
--------------------------------------------------------------------------------
| Income taxes | -5,853 | -4,623 | -18,323 | -14,641 |
--------------------------------------------------------------------------------
| PROFIT FOR THE PERIOD | 14,679 | 15,091 | 57,485 | 41,944 |
--------------------------------------------------------------------------------
| % of sales | 10.2 | 12.9 | 11.6 | 10.4 |
--------------------------------------------------------------------------------
| Earnings per share, | 0.48 | 0.50 | 1.88 | 1.39 |
| undiluted, EUR | | | | |
--------------------------------------------------------------------------------
| Earnings per share, diluted, | 0.48 | 0.49 | 1.87 | 1.36 |
| EUR | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CHAN- | Share | Sha- | Share | Fair | Hed- | Trans- | Re- | Total |
| GES | capital | re | premium | va- | ging | lation | tained | |
| IN | | is- | | lue | fund | diffe- | ear- | |
| GROUP | | sue | | re- | | rence | nings | |
| 'S | | | | ser- | | | | |
| EQUI- | | | | ve | | | | |
| TY | | | | | | | | |
| (EUR | | | | | | | | |
| 1,000 | | | | | | | | |
| ) | | | | | | | | |
--------------------------------------------------------------------------------
| Share | 24,234 | 32 | 1,607 | 117 | 0 | 114 | 28,027 | 54,131 |
| capi- | | | | | | | | |
| tal | | | | | | | | |
| 1.1. | | | | | | | | |
| 2006 | | | | | | | | |
--------------------------------------------------------------------------------
| Trans | | | | | | 2,704 | 2 | 2,706 |
| - | | | | | | | | |
| la- | | | | | | | | |
| tion | | | | | | | | |
| dif- | | | | | | | | |
| fe- | | | | | | | | |
| ren- | | | | | | | | |
| ce | | | | | | | | |
--------------------------------------------------------------------------------
| Hed- | | | | | 3,301 | | | 3,301 |
| ging | | | | | | | | |
| fund | | | | | | | | |
--------------------------------------------------------------------------------
| Pro- | | | | | | | 41,944 | 41,944 |
| fit | | | | | | | | |
| for | | | | | | | | |
| the | | | | | | | | |
| pe- | | | | | | | | |
| riod | | | | | | | | |
--------------------------------------------------------------------------------
| Exer- | 196 | -32 | 650 | | | | | 814 |
| cise | | | | | | | | |
| of | | | | | | | | |
| op- | | | | | | | | |
| tions | | | | | | | | |
| , | | | | | | | | |
| re- | | | | | | | | |
| gis- | | | | | | | | |
| tered | | | | | | | | |
--------------------------------------------------------------------------------
| Exer- | | 143 | | | | | | 143 |
| cise | | | | | | | | |
| of | | | | | | | | |
| op- | | | | | | | | |
| tions | | | | | | | | |
| , | | | | | | | | |
| un- | | | | | | | | |
| re- | | | | | | | | |
| gis- | | | | | | | | |
| te- | | | | | | | | |
| red | | | | | | | | |
--------------------------------------------------------------------------------
| Com- | 560 | | | | | | | 560 |
| bi- | | | | | | | | |
| ning | | | | | | | | |
| of | | | | | | | | |
| share | | | | | | | | |
| clas- | | | | | | | | |
| ses | | | | | | | | |
--------------------------------------------------------------------------------
| Sha- | 12,137 | | 184,159 | | | | | 196,296 |
| res | | | | | | | | |
| of | | | | | | | | |
| Cramo | | | | | | | | |
| Hol- | | | | | | | | |
| ding | | | | | | | | |
| B.V. | | | | | | | | |
--------------------------------------------------------------------------------
| Share | | | -580 | | | | | -580 |
| issue | | | | | | | | |
| costs | | | | | | | | |
| of | | | | | | | | |
| Cramo | | | | | | | | |
| Hol- | | | | | | | | |
| ding | | | | | | | | |
| B.V. | | | | | | | | |
--------------------------------------------------------------------------------
| Re- | -12,619 | | | | | | 12,619 | 0 |
| duc- | | | | | | | | |
| tion | | | | | | | | |
| of | | | | | | | | |
| par | | | | | | | | |
| value | | | | | | | | |
--------------------------------------------------------------------------------
| Sha- | | | | | | | 442 | 442 |
| re | | | | | | | | |
| based | | | | | | | | |
| pay- | | | | | | | | |
| ments | | | | | | | | |
--------------------------------------------------------------------------------
| Divi- | | | | | | | -7,513 | -7,513 |
| dend | | | | | | | | |
| dis- | | | | | | | | |
| tri- | | | | | | | | |
| bu- | | | | | | | | |
| tion | | | | | | | | |
--------------------------------------------------------------------------------
| Total | 24,508 | 143 | 185,836 | 117 | 3,301 | 2,818 | 75,521 | 292,244 |
| equi- | | | | | | | | |
| ty | | | | | | | | |
| at | | | | | | | | |
| 31.12 | | | | | | | | |
| . | | | | | | | | |
| 2006 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Share | 24,508 | 143 | 185,836 | 117 | 3,301 | 2,818 | 75,521 | 292,244 |
| capi- | | | | | | | | |
| tal | | | | | | | | |
| 1.1. | | | | | | | | |
| 2007 | | | | | | | | |
--------------------------------------------------------------------------------
| Trans | | | | | | -4,685 | -2,134 | -6,819 |
| - | | | | | | | | |
| la- | | | | | | | | |
| tion | | | | | | | | |
| dif- | | | | | | | | |
| fe- | | | | | | | | |
| rence | | | | | | | | |
--------------------------------------------------------------------------------
| Hed- | | | | | 3,033 | | | 3,033 |
| ging | | | | | | | | |
| fund | | | | | | | | |
--------------------------------------------------------------------------------
| Pro- | | | | | | | 57,485 | 57,485 |
| fit | | | | | | | | |
| for | | | | | | | | |
| the | | | | | | | | |
| pe- | | | | | | | | |
| riod | | | | | | | | |
--------------------------------------------------------------------------------
| Exer- | 327 | -143 | 1,074 | | | | | 1,258 |
| cise | | | | | | | | |
| of | | | | | | | | |
| op- | | | | | | | | |
| tions | | | | | | | | |
| , | | | | | | | | |
| re- | | | | | | | | |
| gis- | | | | | | | | |
| te- | | | | | | | | |
| red | | | | | | | | |
--------------------------------------------------------------------------------
| Divi- | | | | | | | -15,326 | -15,326 |
| dend | | | | | | | | |
| dis- | | | | | | | | |
| tri- | | | | | | | | |
| bu- | | | | | | | | |
| tion | | | | | | | | |
--------------------------------------------------------------------------------
| Share | | | | | | | 1,805 | 1,805 |
| based | | | | | | | | |
| pay- | | | | | | | | |
| ments | | | | | | | | |
--------------------------------------------------------------------------------
| Total | 24,835 | 0 | 186,910 | 117 | 6,334 | -1,867 | 117,351 | 333,680 |
| equi- | | | | | | | | |
| ty | | | | | | | | |
| at | | | | | | | | |
| 31.12 | | | | | | | | |
| . | | | | | | | | |
| 2007 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED CASH FLOW STATEMENT | 1-12/07 | 1-12/06 |
| (EUR 1,000) | | |
--------------------------------------------------------------------------------
| CASH FLOW FROM OPERATING ACTIVITIES | 138,653 | 103,880 |
--------------------------------------------------------------------------------
| CASH FLOW FROM INVESTING ACTIVITIES | -175,234 | -96,254 |
--------------------------------------------------------------------------------
| CASH FLOW FROM FINANCING ACTIVITIES | | |
--------------------------------------------------------------------------------
| Proceeds from issue of share capital | 1,258 | 787 |
--------------------------------------------------------------------------------
| Dividends paid | -15,326 | -7,513 |
--------------------------------------------------------------------------------
| Increase(+)/decrease(-) in liabilities | 34,393 | -17,066 |
--------------------------------------------------------------------------------
| Increase(+)/decrease(-) in lease | -6,590 | 34,610 |
| liabilities | | |
--------------------------------------------------------------------------------
| CASH FLOW FROM FINANCING ACTIVITIES, | 13,735 | 10,818 |
| TOTAL | | |
--------------------------------------------------------------------------------
| NET CHANGE IN CASH AND CASH EQUIVALENTS | -22,846 | 18,444 |
--------------------------------------------------------------------------------
| CASH AND CASH EQUIVALENTS AT | 41,823 | 1,850 |
| PERIOD-START | | |
--------------------------------------------------------------------------------
| Translation difference | -488 | 302 |
--------------------------------------------------------------------------------
| CASH AND CASH EQUIVALENTS FROM | | 21,227 |
| ACQUISITIONS | | |
--------------------------------------------------------------------------------
| CASH AND CASH EQUIVALENTS AT PERIOD-END | 18,489 | 41,823 |
--------------------------------------------------------------------------------
The cash flow from investing activities includes the cash flow from the sale of
operations in the Netherlands.
--------------------------------------------------------------------------------
| CONTINGENT LIABILITIES (EUR 1,000) | 31.12.07 | 31.12.06 |
--------------------------------------------------------------------------------
| On own behalf | | |
--------------------------------------------------------------------------------
| Mortgages on real estates | 5,663 | 5,663 |
--------------------------------------------------------------------------------
| Mortgages on companies | 77,489 | 77,487 |
--------------------------------------------------------------------------------
| Pledges | 159,759 | 107,212 |
--------------------------------------------------------------------------------
| Other contingent liabilities | 9,541 | 9,795 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| DERIVATIVE FINANCIAL | 31.12.07 | 31.12.07 | 31.12.06 | 31.12.06 |
| INSTRUMENTS (EUR 1,000) | | | | |
--------------------------------------------------------------------------------
| NV = nominal value | NV | FV | NV | FV |
--------------------------------------------------------------------------------
| FV = fair value | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest rate derivatives | | | | |
--------------------------------------------------------------------------------
| Swaps | 138,395 | +5,492 | 152,803 | +4,461 |
--------------------------------------------------------------------------------
| Options | | | | |
--------------------------------------------------------------------------------
| Bought | | | | |
--------------------------------------------------------------------------------
| Written | | | | |
--------------------------------------------------------------------------------
| Foreign exchange | 87,150 | -194 | | |
| contracts | | | | |
--------------------------------------------------------------------------------
| Forwards | | | 19,911 | +113 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| KEY FIGURES | 31.12.07 | 31.12.06 |
--------------------------------------------------------------------------------
| Value of outstanding orders for modular | 94,559 | 81,959 |
| space, EUR 1,000 | | |
--------------------------------------------------------------------------------
| Value of orders for modular space | 89,250 | 74,507 |
| rental, EUR 1,000 | | |
--------------------------------------------------------------------------------
| Value of orders for sale of modular | 5,309 | 7,452 |
| space, EUR 1,000 | | |
--------------------------------------------------------------------------------
| Gross capital expenditure, EUR 1,000 | 175,494 | 111,864 |
--------------------------------------------------------------------------------
| % sales | 35.4 | 27.8 |
--------------------------------------------------------------------------------
| Average personnel | 2,270 | 1,828 |
--------------------------------------------------------------------------------
| Earnings per share, undiluted, EUR | 1.88 | 1.39 |
--------------------------------------------------------------------------------
| Earnings per share, diluted 1), EUR | 1.87 | 1.36 |
--------------------------------------------------------------------------------
| Shareholders' equity per share 2), EUR | 10.88 | 9.66 |
--------------------------------------------------------------------------------
| Equity ratio, % | 37.3 | 38.2 |
--------------------------------------------------------------------------------
| Net interest-bearing liabilities, EUR | 364,985 | 305,643 |
| 1,000 | | |
--------------------------------------------------------------------------------
| Gearing, % | 109.4 | 104.6 |
--------------------------------------------------------------------------------
| Issue-adjusted average number of shares | 30,586,040 | 30,121,137 |
--------------------------------------------------------------------------------
| Issue-adjusted number of shares at the | 30,660,189 | 30,332,793 |
| period-end | | |
--------------------------------------------------------------------------------
| Number of shares adjusted by the | 30,815,560 | 30,811,395 |
| dilution effect of share options | | |
--------------------------------------------------------------------------------
1) Adjusted by the dilution effect of shares entitled by warrants
2) Number of shares registered at the end of the period
INFORMATION BY BUSINESS SEGMENT (EUR 1,000)
The Group's primary segments comprise the equipment rental business and the
modular space business. The secondary, geographical segments consist of Finland,
Sweden, Western Europe and Other Europe. The equipment rental business' sales
are also stated by geographical segment. Netherlands' share of Western Europe is
reported separately, since this business is consolidated with that of the Cramo
Group only until 31 March 2007.
--------------------------------------------------------------------------------
| Sales by business segment, | 10-12/07 | 10-12/06 | 1-12/07 | 1-12/06 |
| (EUR 1,000) | | | | |
--------------------------------------------------------------------------------
| Equipment rental | | | | |
--------------------------------------------------------------------------------
| - Finland | 20,897 | 15,772 | 75,761 | 60,227 |
--------------------------------------------------------------------------------
| - Sweden | 60,177 | 51,644 | 214,515 | 174,721 |
--------------------------------------------------------------------------------
| - Western Europe | 23,117 | 18,592 | 77,462 | 66,319 |
--------------------------------------------------------------------------------
| - Other Europe | 18,121 | 11,672 | 58,202 | 38,446 |
--------------------------------------------------------------------------------
| Equipment rental, total | 122,312 | 97,681 | 425,940 | 339,713 |
--------------------------------------------------------------------------------
| - between the segments | -94 | -80 | -227 | -421 |
--------------------------------------------------------------------------------
| Modular space | 22,383 | 19,152 | 76,733 | 65,513 |
--------------------------------------------------------------------------------
| - between the segments | -827 | -166 | -6,017 | -2,382 |
--------------------------------------------------------------------------------
| Eliminations | -921 | -246 | -6,244 | -2,803 |
--------------------------------------------------------------------------------
| Sales, total | 143,773 | 116,588 | 496,428 | 402,425 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Netherlands' share of Western | 0 | 3,540 | 2,954 | 12,607 |
| Europe | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit (EBITA) | 10-12/07 | 10-12/06 | 1-12/07 | 1-12/06 |
| before amortisation on | | | | |
| intangible assets resulting | | | | |
| from acquisitions by business | | | | |
| segment, | | | | |
| (EUR 1,000) | | | | |
--------------------------------------------------------------------------------
| Equipment rental | | | | |
--------------------------------------------------------------------------------
| - Finland | 4,157 | 1,943 | 14,493 | 10,370 |
--------------------------------------------------------------------------------
| - Sweden | 12,609 | 11,958 | 47,952 | 35,875 |
--------------------------------------------------------------------------------
| - Western Europe | 1,710 | 3,266 | 10,513 | 8,447 |
--------------------------------------------------------------------------------
| - Other Europe | 4,936 | 4,583 | 17,082 | 11,991 |
--------------------------------------------------------------------------------
| Equipment rental, total | 23,411 | 21,751 | 90,040 | 66,683 |
--------------------------------------------------------------------------------
| Modular space | 5,311 | 4,743 | 19,358 | 14,949 |
--------------------------------------------------------------------------------
| Non-allocated Group activities | -2,532 | -3,397 | -12,859 | -8,614 |
--------------------------------------------------------------------------------
| Eliminations | -47 | -183 | -576 | -183 |
--------------------------------------------------------------------------------
| Operating profit, total | 26,144 | 22,913 | 95,963 | 72,834 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Netherlands' share of Western | 0 | 970 | 193 | 1,788 |
| Europe | | | | |
--------------------------------------------------------------------------------
The second-quarter EBITA for Western Europe in 2007 includes EUR 4.0 million of
capital gain from the divestment of rental operations in the Netherlands.
Unallocated Group functions include expenses resulting from Group management,
Group financial management and financing, as well as other Group-level expenses
related to projects. For the first half of 2007, non-allocated Group activities
include costs related to the change of the Cramo brand amounting to EUR 4.2
million. For the full year 2007, non-allocated Group activities include also
option-related costs totalling EUR 1.9 million.
--------------------------------------------------------------------------------
| EBITA-% by business segment | 10-12/07 | 10-12/06 | 1-12/07 | 1-12/06 |
--------------------------------------------------------------------------------
| Equipment rental | | | | |
--------------------------------------------------------------------------------
| - Finland | 19.9 | 12.3 | 19.1 | 17.2 |
--------------------------------------------------------------------------------
| - Sweden | 21.0 | 23.2 | 22.4 | 20.5 |
--------------------------------------------------------------------------------
| - Western Europe | 7.4 | 17.6 | 13.6 | 12.7 |
--------------------------------------------------------------------------------
| - Other Europe | 27.2 | 39.3 | 29.3 | 31.2 |
--------------------------------------------------------------------------------
| Equipment rental, total | 19.1 | 22.3 | 21.1 | 19.6 |
--------------------------------------------------------------------------------
| Modular space | 23.7 | 24.8 | 25.2 | 22.8 |
--------------------------------------------------------------------------------
| Non-allocated Group activities | | | | |
--------------------------------------------------------------------------------
| EBITA-%, total | 18.2 | 19.7 | 19.3 | 18.1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Western Europe without | 7.4 | 15.3 | 13.9 | 12.4 |
| Netherlands | | | | |
--------------------------------------------------------------------------------
The second-quarter EBITA percentage for Western Europe in 2007 includes EUR 4.0
million of capital gains from the divestment of rental operations in the
Netherlands.
--------------------------------------------------------------------------------
| Sales by geographical segment | 10-12/07 | 10-12/06 | 1-12/07 | 1-12/06 |
| (EUR 1,000); sales generated by | | | | |
| both the equipment rental | | | | |
| business and the modular space | | | | |
| business are included in the | | | | |
| geographical segments. | | | | |
--------------------------------------------------------------------------------
| Finland | 31,617 | 24,911 | 113,416 | 91,671 |
--------------------------------------------------------------------------------
| Sweden | 63,878 | 59,275 | 248,456 | 206,094 |
--------------------------------------------------------------------------------
| Western Europe | 30,832 | 23,076 | 85,117 | 70,803 |
--------------------------------------------------------------------------------
| Other Europe | 18,197 | 11,677 | 58,278 | 38,451 |
--------------------------------------------------------------------------------
| Eliminations | -749 | -2,351 | -8,897 | -4,595 |
--------------------------------------------------------------------------------
| Sales, total | 143,773 | 116,588 | 496,428 | 402,425 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Netherlands' share of Western | 0 | 3,540 | 2,954 | 12,607 |
| Europe | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| FINANCIAL | 10-12/07 | 7-9/07 | 4-6/07 | 1-3/07 | 1-12/07 | 1-12/06 |
| PER- | | | | | | |
| FORMANCE | | | | | | |
| BY | | | | | | |
| QUARTERS | | | | | | |
--------------------------------------------------------------------------------
| Sales | 143,773 | 128,962 | 116,396 | 107,297 | 496,428 | 402,425 |
--------------------------------------------------------------------------------
| EBITA | 26,144 | 30,736 | 22,426 | 16,657 | 95,963 | 72,834 |
--------------------------------------------------------------------------------
| EBITA-% | 18.2 | 23.8 | 19.3 | 15.5 | 19.3 | 18.1 |
--------------------------------------------------------------------------------
RELATED PARTY TRANSACTIONS
During the reporting period there were no material transactions with related
parties.
BRIEFING
Cramo will hold a briefing and a live webcast at the conference room of the
Palace Gourmet restaurant, Eteläranta 10, Helsinki, on Friday 15 February 2008
at 11 a.m. 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 15 February 2008 in the
afternoon.
PUBLICATION OF FINANCIAL INFORMATION 2008
The Annual Report 2007 will be published in week 12, 2008.
The 2008 Annual General Meeting will take place on Wednesday, 23 April 2008 in
Helsinki.
Cramo will publish three Interim Reports in 2008.
The January-March Interim Report will be published on Tuesday, 13 May 2008.
The January-June Interim Report will be published on Tuesday, 12 August 2008.
The January-September Interim Report will be published on Tuesday, 11 November
2008.
The data in this Interim 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. +35810 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
OMX Nordic Exchange Helsinki
Major media
www.cramo.com
CRAMO FINANCIAL STATEMENTS BULLETIN JANUARY-DECEMBER 2007 - STRONG AND PROFITABLE GROWTH
| Quelle: Cramo Oyj
Anhänge
