Cramo Oyj - Other information disclosed according to the rules of the Exchange

Cramo launches new strategy and sets new financial targets for 2017-2020

Vantaa, Finland, 2017-02-16 08:00 CET (GLOBE NEWSWIRE) -- Cramo Plc     Stock
Exchange Release 16 February, 2017 at 9.00 am (EET) 

Cramo launches new strategy and sets new financial targets for 2017-2020

Today, 16 February, 2017, Cramo is holding a Capital Markets Day in Helsinki,
Finland, with the purpose of presenting the Group’s new strategy and outlining
how the company will continue its profitable growth journey. With a new
strategy for the four-year period 2017–2020, Cramo aims to capture the market
potential within Equipment rental and Modular space by shaping game-changing
solutions differentiated in two focused business divisions. In connection with
the launch of the updated strategy, Cramo Group sets new long-term financial
targets. 

Cramo’s ambition is to lead and shape the development within its industry and
has thus formed an updated strategy to capture the significant potential of the
sharing economy. 


The strategy 2020 – Shape & Share – aiming to capture the market potential

The new strategy is built on the existing mission to “Create great days at work
and room for great days” towards the vision “Shared resources simplified”. The
strategy has a clear growth focus based on a business model aiming to capture
each market segment’s potential as well as on optimising synergies within the
Group. The key elements of the updated strategy are to 

  -- enable Cramo people to achieve top performance; 
  -- significantly stretch and scale up Cramo’s core business models; and
  -- establish game-changing offerings in sharing resources.

Cramo will support this even further through the following focus areas to be
executed in the coming four-year period: 

  -- clarify and make Equipment rental and Modular space product areas more
     autonomous business divisions in order to efficiently capture the different
     market segment demands and potential;
  -- focus on selected markets in which Cramo is striving for a leading
     position;
  -- create a more customer-oriented focus; and
  -- develop a digital strategy to capture changed customer behaviour and
     requirements.

“We believe Cramo is in the right position to capitalise on the demands of
tomorrow and benefit from a changing environment. As digitalisation, migration
and urbanisation continue to gain speed, demand for full-service renting
solutions increases rapidly. With a more focused business segmentation,
enhanced performance culture and a clear customer orientation, we will deliver
on our growth strategy and further optimise our Group synergies”, says Mr Leif
Gustafsson, President and CEO of Cramo Group. 


New financial targets

Based on the Shape & Share strategy, Cramo also sets new financial targets for
2017-2020. The new financial targets are set separately for the Equipment
rental and Modular space business divisions as well as for the Cramo Group. New
financial targets (on average during the period) are: 

Group financial targets:

  -- Return on equity (ROE) > 15%
  -- Net debt/EBITDA < 3
  -- Profit distribution (unchanged). Dividend approx. 40% of annual earnings
     per share (EPS).

Equipment rental financial targets:

  -- Organic sales growth > markets
  -- ROCE > 14.5%

Modular space financial targets:

  -- Double digit organic rental sales growth
  -- ROCE > 12.5%

New segment structure

As of the first quarter 2017, Cramo has decided to publish its financial
information according to the new segment structure: 

  -- Equipment rental, Scandinavia
  -- Equipment rental, Finland and Eastern Europe
  -- Equipment rental, Central Europe
  -- Modular space 

In addition, Cramo will publish sales figures as additional financial
information of the company’s four largest countries (Sweden, Finland, Germany
and Norway), broken down by Equipment rental and Modular space. The financial
information according to the new segment structure for the financial year 2016
will be published in a separate release. 


Capital Markets Day presentation material and live webcast

The presentation material of Cramo Capital Markets Day will be available on
Cramo’s website on 16 February at approximately 12 noon EET at
www.cramogroup.com/en/capital-markets-day-2017/. The material is in English. It
is possible to follow all the Capital Markets Day's presentations as a live
webcast at the same address. A recording of the webcast will be available after
the Capital Markets Day. 

CRAMO PLC

Leif Gustafsson
President and CEO



Further information:

Mr Leif Gustafsson, President and CEO, tel: +358 10 661 10
Mr Aku Rumpunen, CFO, tel: +358 10 661 10, +358 40 556 3546
Mr Mattias Rådström, SVP, Communication, Marketing and Investor Relations, tel:
+46 70 868 7045 



Distribution:

Nasdaq Helsinki Ltd.
Major media
www.cramogroup.com



Cramo is Europe’s second largest rental services company specialising in
construction machinery and equipment rental and rental-related services as well
as the rental of modular space. Cramo operates in fifteen countries and in
about 320 depots. With a group staff around 2,600, Cramo's consolidated sales
in 2016 was EUR 712 million. Cramo shares are listed on Nasdaq Helsinki Ltd. 

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