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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