2009-08-06 08:00:00 CEST
2009-08-06 08:00:11 CEST
REGULATED INFORMATION
Cramo Oyj - Interim report (Q1 and Q3)
Cramo's Interim Report 1 January - 30 June 2009: Tough environment, tough adjustments
Cramo Plc Interim Report 6 August 2009, at 9.00 am Finnish time (GMT+2) Cramo's Interim Report 1 January - 30 June 2009 Tough environment, tough adjustments - Consolidated sales: EUR 216.2 (280.8) million, down 23.0%; in local currencies: down 15.2% - EBITA EUR 6.3 (48.1) million, down 86.9%; EBITA margin 2.9% (17.1%) - EBIT EUR 3.0 (45.0) million - Earnings per share: undiluted EUR -0.37 (0.78) and diluted EUR -0.37 (0.78) - Tough adjustments continue - Hybrid capital issued to strengthen capital structure - Cash flow after investments EUR 12.4 million in the second quarter - EBITDA EUR 49.9 (88.3) million, 23.1 (31.5) per cent of sales - The Group's full year cash flow after investments will be positive. Earnings per share is expected to improve in the second half of the year, but to remain negative for the full year -------------------------------------------------------------------------------- | KEY FIGURES (EUR 1,000) | 4-6/09 | 4-6/08 | 1-6/09 | 1-6/08 | 1-12/08 | -------------------------------------------------------------------------------- | Sales, EUR 1,000 | 109,319 | 154,015 | 216,185 | 280,789 | 579,802 | -------------------------------------------------------------------------------- | Operating profit before | 4,838 | 30,679 | 6,322 | 48,095 | 102,153 | | amortisation on | | | | | | | intangible assets | | | | | | | resulting from | | | | | | | acquisitions (EBITA) | | | | | | -------------------------------------------------------------------------------- | Operating profit (EBIT) | 3,138 | 28,738 | 2,961 | 44,970 | 91,804 | -------------------------------------------------------------------------------- | Earnings before tax (EBT) | -2,509 | 23,088 | -8,759 | 34,409 | 63,675 | -------------------------------------------------------------------------------- | Profit for the period | -4,639 | 15,892 | -11,375 | 23,898 | 48,650 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Earnings per share (EPS) | -0.11 | 0.56 | -0.29 | 0.85 | 1.84 | | before amortisation on | | | | | | | intangible assets | | | | | | | resulting from | | | | | | | acquisitions, diluted, | | | | | | | EUR | | | | | | -------------------------------------------------------------------------------- | Earnings per share (EPS), | -0.15 | 0.52 | -0.37 | 0.78 | 1.59 | | undiluted, EUR | | | | | | -------------------------------------------------------------------------------- | Earnings per share (EPS), | -0.15 | 0.52 | -0.37 | 0.78 | 1.59 | | diluted, EUR | | | | | | -------------------------------------------------------------------------------- | Equity per share, EUR | | | 9.91 | 11.12 | 10.42 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Return on equity, rolling | | | 3.9 | 18.0 | 14.9 | | 12-month, % | | | | | | -------------------------------------------------------------------------------- | Equity ratio, % | | | 36.4 | 32.0 | 32.4 | -------------------------------------------------------------------------------- | Gearing, % | | | 121.5 | 151.3 | 149.3 | -------------------------------------------------------------------------------- | Net interest-bearing | | | 428,651 | 515,547 | 477,124 | | liabilities | | | | | | -------------------------------------------------------------------------------- | Gross capital expenditure | | | 19,115 | 134,081 | 201,192 | -------------------------------------------------------------------------------- | % of sales | | | 8.8 | 47.8 | 34.7 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Average number of | | | 2,495 | 2,525 | 2,688 | | personnel (FTE) | | | | | | -------------------------------------------------------------------------------- | Number of personnel at | | | 2,402 | 2,791 | 2,785 | | end of period (FTE) | | | | | | -------------------------------------------------------------------------------- Summary of results in first six months Cramo Group's sales in January-June 2009 were EUR 216.2 (280.8) million. Compared to the corresponding period last year, sales decreased by 23.0 per cent. There was a weaker demand and a tighter price competition. The exchange rate of several currencies compared to the euro weakened from last year; measured in local currencies sales shrunk by 15.2 per cent. Sales in April-June amounted to EUR 109.3 (154.0) million. Compared to the corresponding period last year, sales decreased by 29.0 per cent in the second quarter. Measured in local currencies the decrease was 22.2 per cent. EBITA for January-June amounted to EUR 6.3 (48.1) million, 2.9 (17.1) per cent of sales. In accordance with typical seasonality for the sector, profitability improved in the second quarter compared to the first quarter of the year. EBITA for the second quarter was EUR 4.8 (30.7) million, 4.4 (19.9) per cent of sales. Credit losses and credit loss provisions in January-June amounted to EUR 2.5 (1.6) million of which EUR 0.9 (0.9) million was generated in April-June. In the second quarter the Group continued its cost adjustments. Reorganisation expenses for January-June were EUR 3.0 million of which EUR 1.5 million occurred in April-June. Adjustments progressed as planned. Savings made are not yet reflected in current figures. The second half of the year will show the impact of first half year savings actions. Cramo will continue cutting costs in the second half of the year. The Group's depreciation in January-June was EUR 43.5 (40.2) million, 20.1 (14.3) per cent of sales. The Group's depreciation policy, linear time-based depreciations, has not been changed to reflect the fleet's lower utilisation rates. The continued recession in construction and low industrial investments had a negative effect on sales and profitability. The biggest sales decrease occurred in Central and Eastern Europe. In Finland, Sweden and Denmark sales continued to decrease. In Norway, sales grew measured in local currencies during the first half of the year. EBITA was positive in Sweden, Finland and Norway. In Sweden, profitability has stayed on a good level. In Denmark and in Central and Eastern Europe, profitability is unsatisfactory, but ongoing reorganisation measures are expected to improve profitability later in the year. The Group's gearing improved in the second quarter and was 121.5 per cent on 30 June 2009 (155.6 per cent on 31 March 2009). The equity ratio on 30 June 2009 was 36.4 per cent (32.2 per cent on 31 March 2009). At EUR 12.4 million, the Group's cash flow after investments turned positive in the second quarter. Outlook for 2009 Due to the cyclicality of the construction industry and low investment levels in industry, Cramo Group's economic operating environment is expected to continue weakening towards year end. The Group expects construction to decrease in almost all of Cramo's market areas. Public sector investments into various construction sectors, in particular into civil engineering, will balance some of the recessionary effects. In the modular space product area, long agreements even out the cyclical fluctuations in Cramo's operations. The Group continues its consistent cost adjustments in order to ensure profitability and cash flow in all situations. Further actions will be taken in the second half of 2009. Total headcount will go down by some 30 per cent (FTEs) in 2009 compared to August 2008. Other actions aim at an overall efficiency increase and a better rental equipment fleet utilisation. The objective of the actions is to generate approximately EUR 35 million in cost savings in 2009. This means that on a yearly level, from year 2010 onwards, the cost burden will be reduced by approximately EUR 50 million. Due to investments made in recent years there is no need for new investments in 2009. The Group's gross capital expenditure in 2009 will be approximately EUR 30 million and mainly allocated to the purchase of modular space. Demand fluctuations and the timing of non-recurring expenses from economic measures will increase the volatility of quarterly results in 2009. Weakening of several European currencies against the euro, the Swedish krona in particular, will have a negative effect on Cramo Group's figures compared to last year. The Group's cash flow after investments will be positive. Earnings per share is expected to improve in the second half of the year, but to remain negative for the full year. 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. Start-up of new residential as well as commercial and office premises have decreased considerably in all markets throughout the first half of the year. Reconstruction and civil engineering have mainly stayed at the same level. The decision-making periods in procurement for other industries and the public sector have lengthened in early 2009. Cramo Group' s sales in January-June 2009 were EUR 216.2 (280.8) million. Compared to the corresponding period last year, sales decreased by 23.0 per cent. Sales were, in addition to the weak demand situation, depressed by the weakening of several European currencies, the Swedish krona in particular, against the euro. The change in sales measured in local currencies was -15.2 per cent. Cramo Group's sales in April-June 2009 were EUR 109.3 (154.0) million. Compared to the corresponding period last year, sales decreased by 29.0 per cent. Sales decreased most in Central and Eastern Europe. In Finland, Sweden and Denmark sales also decreased clearly. In Norway, Cramo managed to utilise its depot network which was expanded in 2008, and sales grew by 2.4 per cent measured in local currency during the first half of the year. Despite the clear decrease in sales, Cramo believes it managed to increase its market share in most of its markets. EBITA for January-June amounted to EUR 6.3 (48.1) million, showing a 86.9 per cent decrease. The EBITA margin was 2.9 (17.1) per cent of sales. EBITA for April-June amounted to EUR 4.8 (30.7) million and the EBITA margin was 4.4 (19.9) per cent of sales. The weaker market situation has decreased the utilisation rate for the rental equipment fleet in almost all market areas. Price competition has tightened and is particularly strong in Denmark as well as in Central and Eastern Europe. Reorganisation expenses as well as credit losses and credit loss provisions weakened the result. Reorganisation expenses amounted to EUR 3.0 million in January-June of which EUR 1.5 million was generated in the second quarter. Credit losses and credit loss provisions amounted to EUR 2.5 (1.6) million in January-June of which EUR 0.9 (0.9) million materialised in the second quarter. EBIT for the first half of the year amounted to EUR 3.0 (45.0) million, representing 1.4 (16.0) per cent of sales. Earnings before tax was EUR -8.8 (34.4) million and the profit for the period was EUR -11.4 (23.9) million. Earnings per share was EUR -0.37 (0.78). The diluted earnings per share was EUR -0.37 (0.78). Return on investment (in the form of rolling 12-month ROI) stood at 5.8 (13.2) per cent and return on equity (rolling 12-month) at 3.9 (18.0) per cent. CAPITAL EXPENDITURE AND DEPRECIATION/AMORTISATION Gross capital expenditure of EUR 19.1 (134.1) million was mainly allocated to the purchase of modular spaces. Reported depreciation impairments on property, plant and equipment and software totalled EUR 43.5 (40.2) million. Amortisation on intangible assets resulting from acquisitions totalled EUR 3.4 (3.1) million. At the end of the period, goodwill totalled EUR 149.5 (161.6) million. FINANCIAL POSITION AND BALANCE SHEET The Group showed a positive net cash flow of EUR 21.4 (44.1) million from operating activities in January-June. In the first quarter, cash flow from operations was depressed by payment of 2009 advance taxes as well as 2007 and 2008 tax liabilities totalling EUR 11.5 million. In the second quarter operating cash flow amounted to EUR 14.2 (27.7) million. Cash flow from investments in January-June was EUR -13.7 (-151.0) million, of which EUR -2.4 million was related to acquisitions. The investment level was decreased as planned during the first half of the year; the majority of investments were made in the modular space product area. Financing cash flow in January-June was EUR 14.0 (104.7) million. At the end of the period, cash and cash equivalents amounted to EUR 29.6 (16.4) million, with the net change amounting to EUR 21.7 (-2.2) million. The Group's cash flow after investments turned positive in the second quarter and amounted to EUR 12.4 (-38.9) million. The cash flow in the first six months after investments amounted to EUR 7.7 (-106.9) million. The full year cash flow after investments for 2009 is expected to be positive. Equipment sales amounted to EUR 7.8 million of which EUR 4.3 million was generated in the second quarter. Net capital gains from equipment sales amounted to EUR 1.1 million of which EUR 0.2 million was generated in the second quarter. At the end of the period the Group has EUR 7.1 million of assets available for sale in its balance sheet. Equipment sales, in addition to internal transfers within the Group, is an important way for Cramo to adjust its equipment inventory to the market situation. At the end of the period, Cramo Group's gross interest-bearing liabilities totalled EUR 458.2 (531.9) million. Approximately EUR 121.3 million of non-current liabilities are hedged with interest rate swaps. EUR 116.7 million of non-current liabilities adopt hedge accounting. Current liabilities include a total of EUR 121.0 million of loan withdrawals as current loans from non-current credit limits. On 30 June 2009, Cramo Group has unutilised financing limits (excluding leasing limits) of EUR 97.8 million of which non-current limits represented EUR 74.0 million and current limits EUR 23.8 million. On 30 June 2009, Cramo Group's net interest-bearing liabilities totalled EUR 428.7 (515.5) million. Gearing improved in the second quarter and was 121.5 (151.3) per cent. The Group expects interest-bearing net debt to decrease further during 2009, and as a result, gearing will decrease. Cramo Plc issued an EUR 50 million hybrid capital on 29 April 2009 in order to strengthen the Group's capital structure and repay current loans. The coupon rate for the bond is 12.0% p.a. The bond has no maturity date but the company is entitled to redeem it within four years. The bond has been sold to domestic investors. The hybrid capital holds a weaker position than other bonds and the bond is treated as equity in the IFRS-accordant financial statement. A bond holder of a hybrid capital has none of the rights of a shareholder and it does not dilute the holdings of current shareholders. At the same time, Cramo agreed on changing the covenants of its syndicated loan that matures in 2013. The financial covenants were changed so that the gross debt/EBITDA and the interest coverage covenants became more favourable. The amount of tangible fixed assets on the balance sheet was EUR 550.0 (614.8) million. The balance sheet total on 30 June 2009 was EUR 977.1 (1072.6) million and the equity ratio was 36.4 (32.0) per cent. GROUP STRUCTURE At the end of the review period, the operating companies of Cramo Group consisted of the parent company and its subsidiaries in Finland, Sweden, Norway, Denmark, Estonia, Latvia, Lithuania, Poland, the Czech Republic and Kaliningrad in Russia, as well as Cramo JV Oy's company in Moscow, Russia; Cramo Instant Oy's subsidiaries in Finland; and Suomen Tähtivuokraus Oy's subsidiaries in Poland and St Petersburg, Russia. The Slovakian business unit is part of the Czech company. In addition Cramo Plc owns a financing company in Belgium. Cramo Management Oy, owned by the members of the Executive Committee, has been consolidated into the Group according to SIC-12 as a Special Purpose Entity. A network of 290 (298) rental depots offered machine and equipment rental services at the end of the review period. BUSINESS DEVELOPMENT Cramo's main objectives in 2009 are the best possible profitability in a weakening market, positive cash flow after investments and a decreasing gearing. Despite the weakening demand the aim remains to strengthen the market position. Securing profitability and positive cash flow require heavy adjustment of the cost structure to the changed market situation. The adjustment measures also include equipment sales, equipment transfers between countries and utilising new depots, as well as expanding the usages of lease equipment freed from construction. In the next few years, Cramo's aim is to expand its operations further also in new market areas. Despite the economising measures, Cramo has continued investing in developing its IT systems, operating processes and service concepts according to plan. The Group's new joint enterprise resource planning system was launched in Sweden in June. The system will be launched in Finland during 2009 and gradually in other parts of the Group subsequently. 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 each market in which it operates, and to be one of the most profitable companies in the industry. HUMAN RESOURCES During the review period Group staff averaged 2,495 (2,525) (FTE, full-time equivalent). The number of personnel at the end of the period was 2,402 (2,791) (FTE, full-time equivalent). During the same period, the Group's hired work force has decreased by 56 persons. The distribution of personnel at the end of the period was as follows: Finland 673 employees (28.0 per cent of Group total), Sweden 736 (30.6 percent), Norway 191 (8.0 per cent), Denmark 128 (5.3 per cent) and Central and Eastern Europe 673 (28.0 per cent). As a result of the weakened market situation, the number of personnel has continued to be decreased through terminations and layoffs valid until further notice. The personnel will be decreased by approximately 30 per cent in 2009 compared to the situation in August 2008 when the number of personnel was at its highest. In addition to already completed adjustments personnel cuts will increase in the second half of the year. HR development programmes continued as planned during the period. PERFORMANCE BY BUSINESS SEGMENT Cramo Group's business segments are divided into five geographical segments: Finland, Sweden, Norway, Denmark and Central and Eastern Europe. In addition to segment information, Cramo also continues to report on the order book value for modular spaces. In the comparison year 2008, the business was divided into two segments: equipment rental service and modular space business segments. Equipment rental service was divided into geographic segments, of which Norway and Denmark were reported as one segment. On 17 April 2009, Cramo published segment specific comparison data for 2008. Of Cramo Group's January-June 2009 sales EUR 45.9 (60.8) million or 21.0 (21.1) per cent were generated in the Finnish markets, EUR 103.0 (136.5) million or 47.2 (47.4) per cent in the Swedish markets, EUR 31.5 (34.2) million or 14.4 (11.9) per cent in the Norwegian markets and EUR 17.3 (22.3) million or 7.9 (7.8) per cent in the Danish markets. EUR 20.8 (34.1) million or 9.5 (11.8) per cent of sales were generated in Central and Eastern Europe. Finland Cramo Group's sales in Finland during the review period were EUR 45.9 (60.8) million, down 24.6 per cent. EBITA totalled EUR 2.8 (9.9) million, or 6.0 (16.2) per cent of sales. The result includes EUR 1.0 million in reorganisation expenses of which EUR 0.5 million occurred in the second quarter. Second quarter sales totalled EUR 22.6 (33.1) million, and EBITA amounted to EUR 1.8 (6.1) million, or 8.1 (18.6) per cent of sales. The number of depots on 30.6.2009 was 58 (61 on 31.12.2008). In Finland, clearly fewer new projects will be started in construction industry this year than on-going projects will be completed.. Construction has slowed down heavily compared to last year especially in Southern and Northern Finland. In Central Finland construction is slightly more lively. Reconstruction has continued growing slightly. In the first half of the year, Cramo gained new customers in industrial maintenance projects. Price competition has tightened in several product areas within equipment rental service during the beginning of the year. Cramo also offers extensive site and installation services related to rental services in Finland, and their demand and price development has been hit even harder by the recession than the actual rental services. In equipment rental operations, the recession is also visible as shorter rental periods. In modular spaces, demand has remained good and the order book has increased during the second quarter compared to the March end situation. Demand is maintained by municipalities' various space needs. Cramo has continued the measures to reduce personnel in equipment rental operations which began at the end of 2008. During the first quarter, lay-off negotiations were also started concerning personnel in modular space operations, in particular to reduce personnel in production through terminations and lay-offs. The objective is to generate a lighter cost structure in the second half of the year in the Finnish operations. In addition, new lay-off negotiations began in early August to reduce the personnel working in rental services. The effects of the new personnel reductions in rental services will become visible in the first quarter of 2010. The equipment rental portfolio has been adjusted to demand by selling off old equipment. In April 2009, the Confederation of Finnish Construction Industries RT estimated that construction in Finland will decrease by 13 per cent this year. New housing starts as well as commercial and office construction is expected to decrease heavily. Civil engineering will also decrease slightly. According to RT's estimate, renovation which represents approximately 40 per cent of all residential construction will increase by three per cent. In June 2009, Euroconstruct estimated that the Finnish construction markets will decrease this year by over 13 per cent. New housing starts will drop by approximately 24 per cent, commercial and office construction by 26 per cent and civil engineering construction by some 2 per cent. Renovation is expected to increase by some 2 per cent. Sweden Swedish sales in January-June were EUR 103.0 (136.5) million, down 24.5 per cent. Measured in local currencies the decrease amounted to 12.8 per cent. EBITA totalled EUR 17.1 (30.0) million, or 16.6 (21.9) per cent of sales. The euro-denominated development of sales and earnings compared to the corresponding period last year was weakened by the clear weakening of the Swedish krona compared to the euro. Second quarter sales totalled EUR 53.0 (73.8) million, and EBITA amounted to EUR 9.8 (16.9) million, or 18.5 (22.9) per cent of sales. The number of depots on 30.6.2009 was 111 (111 on 31.12.2008). The market situation for equipment rental services in Sweden has clearly weakened and competition has increased in Western and Southern Sweden in particular. There are still many large construction projects and industrial investments going on in Northern Sweden and the Stockholm area. The market situation in modular spaces has remained relatively good. Above all due to its long agreements, Cramo has been able to maintain a reasonable price level and profitability has remained at a good level during the first half of the year considering the market situation. During the review period, Cramo reorganised in Sweden. The new organisation model aims at better customer service, and sales operations have increased at different levels in the organisation. Cramo's operations in Southern Sweden and Denmark have increased their cooperation in maintenance and logistics during the first half of the year. The cutting of personnel costs that began at the end of 2008 have increased. The equipment portfolio has been adjusted to the weakened market situation through equipment sales. The Swedish Construction Federation BI estimated in May 2009 that construction will decrease by six per cent this year. Housing construction is expected to decrease by 24 per cent. Renovation is, however, expected to increase clearly. Commercial and office construction is expected to increase by one per cent. Civil engineering is expected to increase by approximately 10 per cent due to investments by the public sector and energy companies. In June 2009, Euroconstruct estimated that the Swedish construction markets will decrease this year by approximately three per cent. New housing starts will drop by more than 30 per cent and commercial and office construction by some eight per cent. Civil engineering is expected to increase by nearly 15 per cent. Norway Norwegian sales in January-June were EUR 31.5 (34.2) million, showing a decrease of 7.9 per cent. Measured in local currency the sales grew by 2.4 per cent. EBITA totalled EUR 2.3 (3.3) million, or 7.2 (9.5) per cent of sales. Second quarter sales totalled EUR 15.7 (18.6) million, and EBITA amounted to EUR 1.1 (2.4) million, or 6.9 (12.8) per cent of sales. The number of depots on 30.6.2009 was 27 (27 on 31.12.2008). In Norway, Cramo has been able to utilise its depot network which was expanded in 2008 and has continued to increase its market share. Cramo has managed to expand its customer base in particular among large and medium-sized construction companies and industry. In the second quarter Cramo signed an agreement with Statoil-Hydro which makes Cramo supplier of equipment rental service for Statoil-Hydro's Western Norwegian gas plant project. In addition, one of Norway's largest construction companies, AF Group, selected Cramo to be one of its two main suppliers. In modular spaces demand has also continued to be relatively good. Through modular spaces, Cramo has been able to expand its customer base to the public sector and industry. The recovery measures by the public sector in the Nordic countries in construction have been the biggest in Norway, and this is also visible in Cramo's operations. The recovery measures are in particular directed at civil engineering and public services. Cramo continues its measures to develop the profitability of Norwegian operations during 2009. The measures include reorganisation of logistics, transportation and maintenance networks as well as some personnel cuts. Cramo's aim is to be the leading supplier of equipment rental services in Norway as well. In June 2009, Euroconstruct estimated that the Norwegian construction markets will decrease this year by nearly six per cent. New housing starts will drop by 24 per cent and commercial and office construction by nine per cent. Civil engineering is expected to increase by approximately 14 per cent. Denmark Danish sales in January-June were EUR 17.3 (22.3) million, down 22.6 per cent. EBITA amounted to EUR -2.9 (0.3) million. The result includes EUR 1.4 million in reorganisation expenses of which EUR 0.7 million occurred in the second quarter. Second quarter sales totalled EUR 8.8 (11.9) million, and EBITA amounted to EUR -1.2 (0.5) million, or -13.2 (4.0) per cent of sales. The number of depots on 30.6.2009 was 17 (22 on 31.12.2008). The market situation in Denmark has continued as weak, and strong competition in the fragmented markets has clearly decreased prices compared to last year. This is also visible in Cramo's sales and result. However, the price level seems to have stabilised lately. Measures to cut costs, reduce the equipment portfolio and increase operational efficiency continued in the second quarter. Operations have become more efficient in transportation, customer service and maintenance operations, in addition to which co-operation with operations in Southern Sweden has increased. The number of personnel has been decreased to correspond with the new operating model. Adjustment measures will continue. In accordance with its objective, Cramo managed to increase its market share as a supplier of rental services for both the industry and public sector in Denmark. The market share has strengthened in particular in modular spaces. In June 2009, Euroconstruct estimated that the Danish construction markets will decrease this year by some eight per cent. New housing starts will drop by 40 per cent and commercial and office construction by approximately 10 per cent. Civil engineering is expected to increase by five per cent. Renovation projects are also expected to increase slightly in Denmark. Central and Eastern Europe Sales in Central and Eastern Europe amounted to EUR 20.8 (34.1) million in January-June. Sales decreased by 39.0 per cent, the change in local currencies was -31.8 per cent. EBITA totalled EUR -9.4 (4.3) million, or -45.3 (12.5) per cent of sales. The result includes EUR 0.6 million in reorganisation expenses of which EUR 0.3 million occurred in the second quarter. The result also includes an increase in credit losses and credit loss provisions of EUR 1.3 (0.4) million in the first half of the year. Second-quarter sales came to EUR 10.4 (19.9) million, and EBITA amounted to EUR -4.5 (2.8) million, or -43.2 (14.0) per cent of sales. The number of depots on 30.6.2009 was 77 (82 on 31.12.2008). Poor profitability is due to a clear weakening in demand, decreased rental prices, high credit loss provisions, depreciation related to equipment investments made during the operational growth phase as well as costs arising from rearrangement of the cost structure. The effects of the economic recession resulting from the financial crisis have been larger than expected in Central and Eastern Europe. Demand decreased particularly heavily in the Baltic countries during the first half of the year. Also in Poland, the Czech Republic, Slovakia and Russia the recession has depressed demand more heavily than expected. A major decrease in greenfield construction and tightening competition have depressed the price levels which is also visible in Cramo's sales and result. Cramo has continued its consistent adjustment of operations to the weakening markets by lightening the structure of its depot network further, cutting costs and the number of personnel, selling equipment and increasing efficiency by optimising the equipment rental portfolio between different markets. These measures have primarily been directed at the operations in the Baltic countries, where personnel cuts have increased so that the number of personnel will be cut by approximately half compared to the situation at the beginning of the year. The depot network has also been cut and operations reorganised in the Baltic countries in particular. In Latvia and Lithuania combined, the number of depots is expected to decrease from current 27 depots to 10-20 depots by the end of the year, while in Estonia from current 18 depots to 15 depots. Fixed costs are also cut in other Central and Eastern European markets. In addition to cost cutting, sales control has been made more efficient for instance by a sales monitoring system and with pricing, as well as by expanding the customer base to new customer segments. The reaction of emerging markets to the economic recession and recovering from it may deviate from the adjustment in developed industrial countries. The effects of the recession have thus far been particularly strong in the Baltic countries and Russia. The long-term outlook for the rental business remains positive throughout Central and Eastern Europe. The estimates published by Euroconstruct in June 2009 concerning the development of the construction market in Central and Eastern Europe in 2009 was clearly more negative than the estimate published in December. According to the newest estimates construction will decrease by approximately 20 per cent in Estonia and Latvia and by 15 per cent in Lithuania in 2009. In Russia construction is expected to decrease by 15 per cent. In the Czech Republic construction is expected to decrease by three and in Slovakia by some four per cent. Civil engineering is still strong in Poland as it is supported by the EU and the entire market is expected to grow by 5.5 per cent. Housing construction is, however, expected to decrease in Poland by approximately seven per cent. SHARES AND SHARE CAPITAL Cramo Plc's share capital on 30 June 2009 was EUR 24,834,753.09 and the number of shares was 30,660,189 including Cramo Management Oy's holding of 139,225 shares. There were no changes to the number of shares or share capital during the review period. Current option programmes and incentive schemes The Extraordinary General Meeting held on 20 November 2006 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. The Annual General Meeting held on 1 April 2009 decided to grant options to the key personnel of the company and its subsidiaries. The maximum number of option rights is 1,000,000 and they entitle to subscribe for a maximum of 1,000,000 new or existing shares in company ownership. The subscription price is based on the shares' market price on NASDAQ OMX Helsinki Ltd in October 2009. The subscription period for the shares to be subscribed for with the option rights is 1 October 2012 - 31 December 2013. These options have not yet been distributed. On 8 June 2009, Cramo Plc's Board of Directors announced a share incentive scheme for the Group's Executive Committee. The aim of the scheme is to motivate the members of the Executive Committee to stay with the company by motivating them to purchase and own Cramo Plc shares. In view of the shareholdings, the members of the Executive Committee have established a company called Cramo Management Oy with the purpose to buy Cramo Plc shares from the markets for a maximum sum of EUR 2,500,000. The share acquisitions will be financed with equity financing totalling approximately EUR 500,000 and a loan from Cramo Plc. The members of the Executive Committee have financed most of the new company's capital by selling the shares they previously owned in Cramo Plc. As part of the scheme, Cramo Plc will grant Cramo Management Oy an interest-bearing loan of max. EUR 2,000,000 in order to buy company shares. The loan is to be repaid in full by 31 December 2012. The loan period and arrangements can be extended by two years if Cramo Plc's share price in November 2012 is below the average price at which Cramo Management Oy acquired the Cramo Plc shares it owns. Cramo Management Oy has an obligation to repay the loan prematurely by selling Cramo Plc shares in its holding if the company's share price exceeds a certain level determined in the arrangement and this is not temporary. The arrangement is valid until the autumn of 2012 when it will be dissolved by for instance placing Cramo Management Oy into liquidation, merging it with Cramo Plc or selling the Cramo Plc shares Cramo Management Oy owns in some other manner. Transfer of the Cramo Plc shares owned by Cramo Management Oy is restricted during the validity of the arrangement. VALID BOARD AUTHORISATIONS The Annual General Meeting on 1 April 2009 authorised the Board of Directors to decide on acquiring a maximum of 3,066,000 company shares in one or several tranches and transferring these shares in one or several tranches. Under the authorisation, own shares may only be acquired using the company's unrestricted equity. The Board can also use the authorisation to grant option and other special rights as specified in Chapter 10 of the Companies Act. The Board is also authorised to distribute a maximum of 3,000,000 year 2006 option rights and 1,000,000 year 2009 option rights. CHANGES IN SHAREHOLDINGS During the period Cramo Plc received a notification from UBS AG in accordance with Chapter 2 Paragraph 9 of the Securities Markets Act according to which UBS AG's holding of Cramo Plc's shares and votes had fallen below five per cent on 12 June 2009. USB AG's share of the company's shares and votes was at the time 1,524,824 shares and 4.97% respectively. UBS AG also announced an arrangement where it is entitled to recall 173,394 shares which represents 0.57% of Cramo Plc's shares and votes. If this arrangement is realised, UBS AG's holding is 1,698,218 shares and 5.54 per cent of Cramo Plc's shares and votes. During the period Cramo Plc received a notification in accordance with Chapter 2 Paragraph 9 of the Securities Markets Act according to which the following companies' and private persons' combined share of Cramo Plc's shares and votes had on 25 May 2009 exceeded one-fifth (1/5): Hartwall Capital Oy (3,444,794 shares, i.e. 11.24% of shares and votes), K.Hartwall Invest Oy (2,432,000 shares, i.e. 7.93% of shares and votes) and Kusinkapital Ab, Pinewood Invest OÜ, Gustav Tallqvist, Christel Hartwall, Pallas Capital Oy, Fyrklöver-Invest Oy Ab, Antonia Hartwall, Emma Hartwall, Axel Hartwall and Gulle Therman. The combined holding of each party listed above was at the time of the announcement 6,477,779 shares or 21.13 per cent of Cramo Plc's shares and votes. Cramo Plc received a notification in accordance with Chapter 2 Paragraph 9 of the Securities Markets Act according to which Keskinäinen Henkivakuutusyhtiö Suomi's holding of Cramo Plc's shares and votes had on 25 May 2009 fallen below one-twentieth (1/20). Keskinäinen Henkivakuutusyhtiö Suomi's holding at the time was 1,510,176 shares or 4.93 per cent of the shares and votes. Cramo Plc received a notification in accordance with Chapter 2 Paragraph 9 of the Securities Markets Act according to which UBS AG's share of Cramo Plc's shares and votes had on 3 April 2009 exceeded five per cent. UBS AG's holding at the time was 1,848,175 shares or 6.03 per cent of Cramo Plc's shares and votes. Cramo Plc received a notification in accordance with Chapter 2 Paragraph 9 of the Securities Markets Act according to which the following companies' and private persons' combined share of Cramo Plc's shares and votes had on 2 April 2009 exceeded one-twentieth (1/20): K.Hartwall Invest Oy Ab, Hartwall Capital Oy Ab, Kusinkapital Ab, Pinewood Invest OÜ, Gustav Tallqvist, Christel Hartwall, Pallas Capital Oy Ab, Antonia Hartwall, Emma Hartwall and Axel Hartwall. The combined holding of these parties at the time was 4,689,594 shares or 15.30 per cent of the shares and votes. Annual General meeting and organisation of the board of directors On 1 April 2009, Cramo Plc's AGM approved the financial reports for the Group and the parent company for 2008 and discharged the members of the Board of Directors and the President and CEO from liability for the financial year 2008. The AGM confirmed the dividend to be EUR 0.20 per share as proposed by the Board of Directors. In accordance with the AGM's decision the Board of Directors must during the on-going year consider the preconditions for distributing an extra dividend and if necessary call an EGM to decide on the matter. The number of the members of the Board of Directors was confirmed as seven (7). Stig Gustavson, Gunnar Glifberg, Eino Halonen, Hannu Krogerus, Esko Mäkelä and Fredrik Cappelen were re-elected as members of the Board of Directors and Rakennustoimisto Lainio & Laivoranta Oy's CEO Jari Lainio was elected as a new member. The AGM confirmed compensation for the Chairman of the Board to be EUR 60,000 p.a., the compensation for the deputy chairman to be EUR 40,000 p.a. and for the members to be EUR 30,000 p.a. It was also decided that 40 per cent of the annual compensation should primarily be used to purchase company shares on behalf of the Board members. A decision was made to pay an attendance allowance of EUR 1,000 per attended meeting for each Board member as well as reasonable travel costs according to invoice. Ernst & Young Oy, a firm of authorised public accountants, with Erkka Talvinko, APA, as the auditor with principal responsibility, were appointed as the company's auditors. The Annual General Meeting authorised the Board of Directors to decide on the acquisition of a maximum of 3,066,000 of the company's own shares in one or several tranches. The company, together with its subsidiaries, cannot at any time hold more than 10 per cent of all of its registered shares. The shares will be acquired in public trading wherefore the acquisition will be directed. The share acquisitions will be carried out on NASDAQ OMX Helsinki Ltd. The compensation paid for acquiring own shares must be based on the company's share price in public trading. The minimum price for the shares to be acquired is the shares' lowest quotation and the maximum price the shares' highest quotation in public trading during the validity of the authorisation. The Board of Directors shall decide on the means of acquisition and other terms for the acquisition. Derivatives can be used in the acquisition. Under the authorisation, own shares may only be acquired using the company's unrestricted equity. Thus, the acquisition of own shares will reduce the company's distributable equity. The Annual General Meeting authorised the Board of Directors to decide on the transfer of treasury shares in one or several tranches. The maximum number of shares that may be transferred is 3,066,000. The Board of Directors shall decide on the terms for the transfer of treasury shares. The transfer may be carried out as a directed share issue, provided that a weighty financial reason exists for the company to do so. The Board can also use the authorisation to grant option and other special rights as specified in Paragraph 10 of the Companies Act. The authorisations shall remain in force until the next Annual General Meeting of Shareholders, or no later than 1 October 2010. The Annual General Meeting decided to grant options to the key personnel of the company and its subsidiaries. The maximum number of option rights is 1,000,000 and they entitle to subscribe for a maximum of 1,000,000 new or existing shares in company ownership. The share subscription price is recorded in full in the unrestricted equity fund. In shares subscribed based on option rights, the subscription price is based on the market price of Cramo Plc's shares on NASDAQ OMX Helsinki Ltd in October 2009. The subscription period for the shares is 1 October 2012 - 31 December 2013. In its organisation meeting on 1 April 2009, Cramo Plc's Board of Directors selected Stig Gustavson as the Chairman and Eino Halonen as the Deputy Chairman. Eino Halonen (Chairman), Fredrik Cappelen, Jari Lainio and Esko Mäkelä were selected for the Audit Committee. Stig Gustavson (Chairman), Gunnar Glifberg, Hannu Krogerus and Erik Hartwall as a member from outside the Board of Directors were selected to the Nomination and Compensation Committee. 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 operational risk factors have increased as a result of the economic recession. Increased risks also include availability of financing, price of financing and credit losses. In addition, the weakened market situation increases the Group's impairment risks related to the balance sheet value of acquisitions. Greater attention will be paid to the Group's risk management in the changed operating environment. CONSIDERABLE EVENTS AFTER THE BALANCE SHEET DATE After the balance sheet data there has been no considerable events. 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 8 Operating Segments, IAS 23 Borrowing Costs and SIC-12 Consolidation - Special Purpose Entities. The company has published a separate communique on the application of IFRS 8, Operating Segments. Other amendments are not assessed as being significant within Cramo's financial figures. -------------------------------------------------------------------------------- | CONSOLIDATED BALANCE SHEET (IN | 30.6.09 | 30.6.08 | Change | 31.12.08 | | EUR 1,000) | | | % | | -------------------------------------------------------------------------------- | ASSETS | | | | | -------------------------------------------------------------------------------- | NON-CURRENT ASSETS | | | | | -------------------------------------------------------------------------------- | Property, plant and equipment | 549,946 | 614,793 | -10.5 | 585,554 | -------------------------------------------------------------------------------- | Goodwill | 149,478 | 161,643 | -7.5 | 147,850 | -------------------------------------------------------------------------------- | Other intangible assets | 96,052 | 110,545 | -13.1 | 97,259 | -------------------------------------------------------------------------------- | Available-for-sale investments | 339 | 371 | -8.6 | 314 | -------------------------------------------------------------------------------- | Receivables | 2,930 | 3,856 | -24.0 | 2,964 | -------------------------------------------------------------------------------- | Deferred income tax assets | 19,094 | 8,552 | *) | 17,391 | -------------------------------------------------------------------------------- | TOTAL NON-CURRENT ASSETS | 817,838 | 899,760 | -9.1 | 851,333 | -------------------------------------------------------------------------------- | CURRENT ASSETS | | | | | -------------------------------------------------------------------------------- | Inventories | 14,397 | 20,110 | -28.4 | 15,920 | -------------------------------------------------------------------------------- | Trade and other receivables | 95,806 | 124,877 | -23.3 | 113,075 | -------------------------------------------------------------------------------- | Income tax receivables | 10,882 | 4,534 | *) | 4,394 | -------------------------------------------------------------------------------- | Derivative instruments | 1,492 | 6,908 | -78.4 | 4,741 | -------------------------------------------------------------------------------- | Cash and cash equivalents | 29,583 | 16,366 | 80.8 | 8,123 | -------------------------------------------------------------------------------- | TOTAL CURRENT ASSETS | 152,160 | 172,795 | -11.9 | 146,254 | -------------------------------------------------------------------------------- | Assets available for sale | 7,094 | | | 0 | -------------------------------------------------------------------------------- | TOTAL ASSETS | 977,093 | 1,072,55 | -8.9 | 997,587 | | | | 5 | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EQUITY AND LIABILITIES | | | | | -------------------------------------------------------------------------------- | EQUITY | | | | | -------------------------------------------------------------------------------- | Share capital | 24,835 | 24,835 | 0.0 | 24,835 | -------------------------------------------------------------------------------- | Share premium fund | 186,910 | 186,910 | 0.0 | 186,910 | -------------------------------------------------------------------------------- | Fair value reserve | 117 | 117 | 0.0 | 117 | -------------------------------------------------------------------------------- | Hedging fund | 4,971 | 6,783 | -26.7 | 6,792 | -------------------------------------------------------------------------------- | Translation differences | -24,480 | -2,370 | *) | -30,289 | -------------------------------------------------------------------------------- | Retained earnings | 110,235 | 124,579 | -11.5 | 131,111 | -------------------------------------------------------------------------------- | Equity attributable to equity | 302,589 | 340.855 | -11.2 | 319.476 | | holders of the parent company | | | | | -------------------------------------------------------------------------------- | Minority interest | 503 | | | | -------------------------------------------------------------------------------- | Hybrid capital | 49,630 | | | | -------------------------------------------------------------------------------- | TOTAL EQUITY | 352,722 | 340,855 | 3.5 | 319,476 | -------------------------------------------------------------------------------- | NON-CURRENT LIABILITIES | | | | | -------------------------------------------------------------------------------- | Provisions | 91 | 234 | -61.1 | 186 | -------------------------------------------------------------------------------- | Deferred income tax liabilities | 76,694 | 75,390 | 1.7 | 78,967 | -------------------------------------------------------------------------------- | Interest-bearing liabilities | 290,190 | 317,020 | -8.5 | 288,700 | -------------------------------------------------------------------------------- | Other non-current liabilities | 2,912 | 11,391 | -74.4 | 5,622 | -------------------------------------------------------------------------------- | TOTAL NON-CURRENT LIABILITIES | 369,887 | 404,035 | -8.5 | 373,475 | -------------------------------------------------------------------------------- | CURRENT LIABILITIES | | | | | -------------------------------------------------------------------------------- | Trade and other payables | 73,251 | 95,339 | -23.2 | 93,515 | -------------------------------------------------------------------------------- | Interest-bearing liabilities | 168,044 | 214,492 | -21.7 | 196,546 | -------------------------------------------------------------------------------- | Derivative instruments | 2,984 | 401 | *) | 1,720 | -------------------------------------------------------------------------------- | Income tax liabilities | 10,205 | 17,433 | -41.5 | 12,855 | -------------------------------------------------------------------------------- | TOTAL CURRENT LIABILITIES | 254,484 | 327,665 | -22.3 | 304,636 | -------------------------------------------------------------------------------- | Liabilities related to assets | | | | | | available for sale | | | | | -------------------------------------------------------------------------------- | TOTAL LIABILITIES | 624,371 | 731,700 | -14.7 | 678,111 | -------------------------------------------------------------------------------- | TOTAL EQUITY AND LIABILITIES | 977,093 | 1,072,55 | -8.9 | 997,587 | | | | 5 | | | -------------------------------------------------------------------------------- *) Change over 100 per cent -------------------------------------------------------------------------------- | CONSOLIDATED INCOME | 4-6/09 | 4-6/08 | 1-6/09 | 1-6/08 | 1-12/0 | | STATEMENT 1 JAN 2009 - 30 | | | | | 8 | | JUNE 2009 | | | | | | | (in EUR 1,000) | | | | | | -------------------------------------------------------------------------------- | SALES | 109,319 | 154,015 | 216,185 | 280,789 | 579,80 | | | | | | | 2 | -------------------------------------------------------------------------------- | Other operating income | 1,041 | 7,222 | 2,093 | 8,897 | 16,855 | -------------------------------------------------------------------------------- | Change in inventories of | -620 | 391 | -516 | 982 | -770 | | finished goods and work in | | | | | | | progress | | | | | | -------------------------------------------------------------------------------- | Production for own use | 2,558 | 5,257 | 5,209 | 9,967 | 18,725 | -------------------------------------------------------------------------------- | Materials and services | -33,878 | -53,243 | -69,347 | -97,360 | -195,5 | | | | | | | 96 | -------------------------------------------------------------------------------- | Employee benefits | -27,073 | -31.746 | -53,731 | -60,182 | -118.4 | | | | | | | 52 | -------------------------------------------------------------------------------- | Depreciation and impairment | -21,710 | -21,514 | -43,528 | -40,214 | -85,41 | | | | | | | 2 | -------------------------------------------------------------------------------- | Amortisation on intangible | -1,700 | -1,940 | -3,361 | -3,124 | -10,35 | | assets resulting from | | | | | 0 | | acquisitions | | | | | | -------------------------------------------------------------------------------- | Other operating expenses | -24,800 | -29,704 | -50,042 | -54,785 | -112,9 | | | | | | | 99 | -------------------------------------------------------------------------------- | OPERATING PROFIT | 3,138 | 28,738 | 2,961 | 44,970 | 91,804 | -------------------------------------------------------------------------------- | % of sales | 2.9 | 18.7 | 1.4 | 16.0 | 15.8 | -------------------------------------------------------------------------------- | Finance costs (net) | -5,647 | -5,650 | -11,720 | -10,561 | -28,12 | | | | | | | 8 | -------------------------------------------------------------------------------- | PROFIT BEFORE TAXES | -2,509 | 23,088 | -8,759 | 34,409 | 63,675 | -------------------------------------------------------------------------------- | % of sales | -2.3 | 15.0 | -4.1 | 12.3 | 11.0 | -------------------------------------------------------------------------------- | Income taxes | -2,130 | -7,196 | -2,617 | -10,511 | -15,02 | | | | | | | 5 | -------------------------------------------------------------------------------- | PROFIT FOR THE PERIOD | -4,639 | 15,892 | -11,375 | 23,898 | 48,650 | -------------------------------------------------------------------------------- | % of sales | -4.2 | 10.3 | -5.3 | 8.5 | 8.4 | -------------------------------------------------------------------------------- | Earnings per share, | -0.15 | 0.52 | -0.37 | 0.78 | 1.59 | | undiluted, EUR | | | | | | -------------------------------------------------------------------------------- | Earnings per share, | -0.15 | 0.52 | -0.37 | 0.78 | 1.59 | | diluted, EUR | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | COMPREHENSIVE INCOME | 4-6/09 | 4-6/08 | 1-6/09 | 1-6/08 | 1-12/0 | | STATEMENT | | | | | 8 | | 1.1.2009-30.6.2009 | | | | | | | (in EUR 1,000) | | | | | | -------------------------------------------------------------------------------- | PROFIT FOR THE PERIOD | -4,639 | 15,892 | -11,375 | 23,898 | 48,650 | -------------------------------------------------------------------------------- | Other comprehensive income | | | | | | -------------------------------------------------------------------------------- | - Change in hedging fund, | 91 | 2,651 | -1,821 | 449 | 458 | | net of tax | | | | | | -------------------------------------------------------------------------------- | - Change in exchange rate | 3,860 | -768 | 2,451 | 1,248 | -46,15 | | differences, net of tax | | | | | 1 | -------------------------------------------------------------------------------- | Total other comprehensive | 3,951 | 1,883 | 630 | 1,697 | -45,69 | | income | | | | | 3 | -------------------------------------------------------------------------------- | TOTAL COMPREHENSIVE INCOME | -688 | 17,775 | -10,745 | 25,595 | 2,957 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CHANGES | Shar | Share | Fair | Retain | Total | Minor | Hybri | Total | | IN | e | premi | value | ed | | ity | d | equity | | GROUP'S | capi | um | reserv | earn | | inter | capit | | | EQUITY | tal | fund | e | ings | | est | al | | | (IN EUR | | | | | | | | | | 1,000) | | | | | | | | | -------------------------------------------------------------------------------- | Share | 24,8 | 186,9 | 117 | 121,81 | 333,68 | 0 | 0 | 333,68 | | capital | 35 | 10 | | 8 | 0 | | | 0 | | on | | | | | | | | | | 1.1.2008 | | | | | | | | | -------------------------------------------------------------------------------- | Comprehen | | | | 25,595 | 25,595 | | | 25,595 | | sive | | | | | | | | | | income | | | | | | | | | -------------------------------------------------------------------------------- | Share-bas | | | | 1,508 | 1,508 | | | 1,508 | | ed | | | | | | | | | | payments | | | | | | | | | -------------------------------------------------------------------------------- | Dividend | | | | -19,92 | -19,92 | | | -19,92 | | distribut | | | | 9 | 9 | | | 9 | | ion | | | | | | | | | -------------------------------------------------------------------------------- | Share | 24,8 | 186,9 | 117 | 128,99 | 340,85 | 0 | 0 | 340,85 | | capital | 35 | 10 | | 2 | 5 | | | 5 | | on | | | | | | | | | | 30.06.200 | | | | | | | | | | 8 | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Share | 24,8 | 186,9 | 117 | 107,61 | 319,47 | 0 | 0 | 319,47 | | capital | 35 | 10 | | 4 | 6 | | | 6 | | on | | | | | | | | | | 1.1.2009 | | | | | | | | | -------------------------------------------------------------------------------- | Comprehen | | | | -10,74 | -10,74 | | | -10,74 | | sive | | | | 5 | 5 | | | 5 | | income | | | | | | | | | -------------------------------------------------------------------------------- | Share-bas | | | | 991 | 991 | | | 991 | | ed | | | | | | | | | | payments | | | | | | | | | -------------------------------------------------------------------------------- | Dividend | | | | -6,132 | -6,132 | | | -6,132 | | distribut | | | | | | | | | | ion | | | | | | | | | -------------------------------------------------------------------------------- | Minority | | | | -1,001 | -1,001 | 503 | | -498 | | interest | | | | | | | | | -------------------------------------------------------------------------------- | Hybrid | | | | | | | 49,63 | 49,630 | | capital | | | | | | | 0 | | -------------------------------------------------------------------------------- | Share | 24,8 | 186,9 | 117 | 90,727 | 302,58 | 503 | 49,63 | 352,72 | | capital | 35 | 10 | | | 9 | | 0 | 2 | | on | | | | | | | | | | 30.06.200 | | | | | | | | | | 9 | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONSOLIDATED CASH FLOW STATEMENT (IN | 1-6/09 | 1-6/08 | 1-12/08 | | EUR 1,000) | | | | -------------------------------------------------------------------------------- | CASH FLOW FROM OPERATING ACTIVITIES | 21,393 | 44,093 | 120,960 | -------------------------------------------------------------------------------- | CASH FLOW FROM INVESTING ACTIVITIES | -13,706 | -150,998 | -216,568 | -------------------------------------------------------------------------------- | CASH FLOW FROM FINANCING ACTIVITIES | | | | -------------------------------------------------------------------------------- | Dividends paid | -6,132 | -19,929 | -19,929 | -------------------------------------------------------------------------------- | Increase (+) / decrease (-) in | -20,969 | 101,344 | 68,235 | | liabilities | | | | -------------------------------------------------------------------------------- | Increase (+) / decrease (-) in lease | -7,924 | 23,327 | 39,154 | | liabilities | | | | -------------------------------------------------------------------------------- | Hybrid capital | 49,500 | | | -------------------------------------------------------------------------------- | Acquisition of own shares | -500 | | | -------------------------------------------------------------------------------- | CASH FLOW FROM FINANCING ACTIVITIES, | 13,975 | 104,742 | 87,460 | | TOTAL | | | | -------------------------------------------------------------------------------- | NET CHANGE IN CASH AND CASH EQUIVALENTS | 21,662 | -2,163 | -8,149 | -------------------------------------------------------------------------------- | CASH AND CASH EQUIVALENTS AT PERIOD | 8,123 | 18,489 | 18,489 | | START | | | | -------------------------------------------------------------------------------- | Translation difference | -202 | 40 | -2,217 | -------------------------------------------------------------------------------- | CASH AND CASH EQUIVALENTS AT PERIOD END | 29,583 | 16,366 | 8,123 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | CONTINGENT LIABILITIES (IN | 30.6.09 | 30.6.08 | 31.12.08 | | EUR 1,000) | | | | -------------------------------------------------------------------------------- | On own behalf | | | | -------------------------------------------------------------------------------- | Mortgages on companies | 83,317 | 83,317 | 83,317 | -------------------------------------------------------------------------------- | Pledges | 64,740 | 80,156 | 64,740 | -------------------------------------------------------------------------------- | Interest on hybrid capital | 1,050 | | | -------------------------------------------------------------------------------- | Other contingent | 10,448 | 8,724 | 11,016 | | liabilities | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | DERIVATIVE | 30.6.09 | 30.6.09 | 30.6.0 | 30.6.08 | 31.12.08 | 31.12.0 | | FINANCIAL | | | 8 | | | 8 | | INSTRUMENTS (IN | | | | | | | | EUR 1,000) | | | | | | | -------------------------------------------------------------------------------- | | NV | FV | NV | FV | NV | FV | -------------------------------------------------------------------------------- | NV = nominal | | | | | | | | value | | | | | | | -------------------------------------------------------------------------------- | FV = fair value | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Interest rate | | | | | | | | derivatives | | | | | | | -------------------------------------------------------------------------------- | Swaps | 121,254 | -3,710 | 132,85 | 6,867 | 142,310 | -1,637 | | | | | 0 | | | | -------------------------------------------------------------------------------- | Bought | | | | | | | -------------------------------------------------------------------------------- | Written | | | | | | | -------------------------------------------------------------------------------- | Foreign exchange | | | | | | | | contracts | | | | | | | -------------------------------------------------------------------------------- | Forward | 116,668 | 2,218 | 151,61 | -364 | 134,880 | +5,293 | | agreements and | | | 3 | | | | | swaps | | | | | | | -------------------------------------------------------------------------------- | Options | | | 30,000 | -37 | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | KEY FIGURES | 30.6.09 | 30.6.08 | Change | 31.12.08 | | | | | % | | -------------------------------------------------------------------------------- | Total order book for | 97,494 | 101,014 | -3.5 | 106,833 | | modular space in EUR 1,000 | | | | | -------------------------------------------------------------------------------- | Order book for rental of | 94,722 | 92,709 | 2.2 | 102,606 | | modular space in EUR 1,000 | | | | | -------------------------------------------------------------------------------- | Order book for sales of | 2,772 | 8,305 | -66.6 | 4,228 | | modular space in EUR 1,000 | | | | | -------------------------------------------------------------------------------- | Gross capital expenditure | 19,115 | 134,081 | -85.7 | 201,192 | | in EUR 1,000 | | | | | -------------------------------------------------------------------------------- | % of sales | 8.8 | 47.8 | | 34.7 | -------------------------------------------------------------------------------- | Average number of personnel | 2,495 | 2,525 | -1.2 | 2,688 | | (FTE) | | | | | -------------------------------------------------------------------------------- | Number of personnel at end | 2,402 | 2,791 | -13.9 | 2,785 | | of period (FTE) | | | | | -------------------------------------------------------------------------------- | Earnings per share (EPS), | -0.37 | 0.78 | *) | 1.59 | | undiluted 1), EUR | | | | | -------------------------------------------------------------------------------- | Earnings per share (EPS), | -0.37 | 0.78 | *) | 1.59 | | diluted 1,2), EUR | | | | | -------------------------------------------------------------------------------- | Equity per share 3), EUR | 9,91 | 11.12 | -10.9 | 10.42 | -------------------------------------------------------------------------------- | Equity ratio, % | 36.4 | 32.0 | | 32.4 | -------------------------------------------------------------------------------- | Net interest-bearing | 428,651 | 515,547 | -16.9 | 477,124 | | liabilities in EUR 1,000 | | | | | -------------------------------------------------------------------------------- | Gearing, % | 121.5 | 151.3 | | 149.3 | -------------------------------------------------------------------------------- | Issue-adjusted average | 30,649,420 | 30,660,18 | 0.0 | 30,660,189 | | number of shares | | 9 | | | -------------------------------------------------------------------------------- | Issue-adjusted number of | 30,520,964 | 30,660,18 | -0.5 | 30,660,189 | | shares at period end | | 9 | | | -------------------------------------------------------------------------------- | Number of shares adjusted | 30,899,770 | 30,660,18 | 0.8 | 30,660,189 | | by dilution effect of share | | 9 | | | | options | | | | | -------------------------------------------------------------------------------- The shares acquired by Cramo Management Oy have been deducted from the registered number of shares. Adjusted by the dilution effect of shares with entitlement by warrants The number of shares adjusted by the share issue and the end of the period. INFORMATION PRESENTED BY BUSINESS SEGMENT (IN EUR 1,000) The Group's segments are divided geographically and consist of Finland, Sweden, Norway, Denmark and Central and Eastern Europe. -------------------------------------------------------------------------------- | Sales by segment (in | 4-6/09 | 4-6/08 | 1-6/09 | 1-6/08 | 1-12/08 | | EUR 1,000) | | | | | | -------------------------------------------------------------------------------- | Finland | 22,580 | 33,063 | 45,852 | 60,788 | 126,286 | -------------------------------------------------------------------------------- | Sweden | 52,952 | 73,819 | 103,006 | 136,476 | 273,849 | -------------------------------------------------------------------------------- | Norway | 15,742 | 18,581 | 31,493 | 34,204 | 69,684 | -------------------------------------------------------------------------------- | Denmark | 8,750 | 11,864 | 17,281 | 22,327 | 44,387 | -------------------------------------------------------------------------------- | Central and Eastern | 10,445 | 19,944 | 20,808 | 34,098 | 77,434 | | Europe | | | | | | -------------------------------------------------------------------------------- | Intra-segment sales | -1,150 | -3,255 | -2,255 | -7,103 | -11,838 | -------------------------------------------------------------------------------- | Sales, total | 109,319 | 154,015 | 216,185 | 280,789 | 579,802 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Operating profit (EBITA) | 4-6/09 | 4-6/08 | 1-6/09 | 1-6/08 | 1-12/08 | | before amortisation on | | | | | | | intangible assets | | | | | | | resulting from | | | | | | | acquisitions, by segment | | | | | | | (in EUR 1,000) | | | | | | -------------------------------------------------------------------------------- | Finland | 1,829 | 6,149 | 2,761 | 9,873 | 26,346 | -------------------------------------------------------------------------------- | Sweden | 9,810 | 16,875 | 17,113 | 29,949 | 62,909 | -------------------------------------------------------------------------------- | Norway | 1,079 | 2,374 | 2,271 | 3,252 | 6,135 | -------------------------------------------------------------------------------- | Denmark | -1,154 | 476 | -2,900 | 319 | -2,888 | -------------------------------------------------------------------------------- | Central and Eastern | -4,517 | 2,783 | -9,432 | 4,258 | 9,880 | | Europe | | | | | | -------------------------------------------------------------------------------- | Non-allocated capital | | 6,025 | | 6,025 | 10,082 | | gains and other income | | | | | | -------------------------------------------------------------------------------- | Non-allocated Group | -2,157 | -3,785 | -3,528 | -5,003 | -9,530 | | activities | | | | | | -------------------------------------------------------------------------------- | Eliminations | -52 | -218 | 38 | -577 | -781 | -------------------------------------------------------------------------------- | Group EBITA, total | 4,838 | 30,679 | 6,322 | 48,095 | 102,153 | -------------------------------------------------------------------------------- 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 sales gains and other income include in 2008 a EUR 6.0 million sales gain from Finnish real estate and a EUR 4.1 million gain from the acquisition of Cramo Rentakran's minority interest. -------------------------------------------------------------------------------- | EBITA %, by segment | 4-6/09 | 4-6/08 | 1-6/09 | 1-6/08 | 1-12/08 | -------------------------------------------------------------------------------- | Finland | 8.1 | 18.6 | 6.0 | 16.2 | 20.9 | -------------------------------------------------------------------------------- | Sweden | 18.5 | 22.9 | 16.6 | 21.9 | 23.0 | -------------------------------------------------------------------------------- | Norway | 6.9 | 12.8 | 7.2 | 9.5 | 8.8 | -------------------------------------------------------------------------------- | Denmark | -13.2 | 4.0 | -16.8 | 1.4 | -6.5 | -------------------------------------------------------------------------------- | Central and Eastern Europe | -43.2 | 14.0 | -45.3 | 12.5 | 12.8 | -------------------------------------------------------------------------------- | Group EBITA % | 4.4 | 19.9 | 2.9 | 17.1 | 17.6 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | FINANCIAL | 4-6/09 | 1-3/09 | 10-12/ | 7-9/08 | 7/08-6/ | 1-12/08 | | PERFORMANCE BY | | | 08 | | 09 | | | QUARTER | | | | | | | -------------------------------------------------------------------------------- | Sales | 109,31 | 106,86 | 143,31 | 155,697 | 515,198 | 579,802 | | | 9 | 6 | 6 | | | | -------------------------------------------------------------------------------- | EBITA | 4,838 | 1,485 | 19,843 | 34,215 | 60,381 | 102,153 | -------------------------------------------------------------------------------- | % of sales | 4.4 | 1.4 | 13.8 | 22.0 | 11.7 | 17.6 | -------------------------------------------------------------------------------- LARGEST SHAREHOLDERS -------------------------------------------------------------------------------- | TEN LARGEST SHAREHOLDERS 30.06.2009 | Shares | % | -------------------------------------------------------------------------------- | 1 | Hartwall Capital Oy Ab | 3,656,293 | 11.93 | -------------------------------------------------------------------------------- | 2 | K. Hartwall Invest Oy | 2,432,000 | 7.93 | -------------------------------------------------------------------------------- | 3 | Rakennusmestarien säätiö (Construction | 1,862,620 | 6.08 | | | engineers' fund) | | | -------------------------------------------------------------------------------- | 4 | Suomi Mutual Life Assurance Company | 1,510,176 | 4.93 | -------------------------------------------------------------------------------- | 5 | Odin Finland | 528,864 | 1.72 | -------------------------------------------------------------------------------- | 6 | Ilmarinen Mutual Pension Insurance | 352,256 | 1.15 | | | Company | | | -------------------------------------------------------------------------------- | 7 | Varma Mutual Pension Insurance Company | 302,607 | 0.99 | -------------------------------------------------------------------------------- | 8 | Rakennusmestarit ja Insinöörit Amk Rkl | 300,938 | 0.98 | -------------------------------------------------------------------------------- | 9 | Koskenkorva Matti Olavi | 245,731 | 0.80 | -------------------------------------------------------------------------------- | 10 | Fondita Nordic Micro Cap mutual fund | 225,200 | 0.73 | -------------------------------------------------------------------------------- | | Ten largest owners, total | 11,416,685 | 37.24 | -------------------------------------------------------------------------------- | | Nominee registered | 5,607,407 | 18.29 | -------------------------------------------------------------------------------- | | Others | 13,636,097 | 44.47 | -------------------------------------------------------------------------------- | | Total | 30,660,189 | 100.00 | -------------------------------------------------------------------------------- RELATED PARTY TRANSACTIONS During the period, Cramo Plc signed an agreement on a EUR 2,000,000 interest-bearing loan with Cramo Management Oy, owned by Cramo's Executive Committee members. By 30 June 2009, EUR 500,000 had been withdrawn from the loan. The aim of Cramo Management Oy is to motivate the members of the Executive Committee to stay with the company by motivating them to purchase and own Cramo Plc shares. BRIEFING Cramo will hold a briefing and a live webcast in the conference room of the Palace Gourmet restaurant, Eteläranta 10, Helsinki, on Thursday 6 August 2009, at 11:00 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 6 August 2009 in the afternoon. PUBLICATION OF FINANCIAL INFORMATION 2009 During 2009, Cramo will publish one more interim report. The January-September interim report will be published on 3 November 2009. The information in this interim report is based on unaudited figures. CRAMO PLC Vesa Koivula President and Chief Executive Officer, 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. In the current exceptional environment, the statements of this release are subject to higher than normal risks and uncertainties. DISTRIBUTION NASDAQ OMX Helsinki Ltd. Principal media www.cramo.com
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