RERMAG

Cramo Updates Strategic Cornerstones and Financial Targets

International rental giant Cramo’s board of directors held a Capital Markets Day for institutional investors, analysts and media representatives yesterday during which they announced updates in the company’s long-term financial targets and strategic cornerstones.

“Our target is to focus on profitability and efficient use of capital through operational agility and excellence,” said president and CEO Vesa Koivula. “We aim to optimize our operations in mature and growth markets and to grow faster than the market. Our policy is to pursue stable profit distribution.”

Cramo said its strategic cornerstones are:

- To be the customer’s first choice;
- To be “best in town” in the rental business, meaning the leading rental solutions provider in each homogeneous local market, city, district or region;
- To act as a driver of rental development;
- To combine mature and growth markets; and
- Operational agility.

Cramo’s long-term financial targets are:
- Profitability – Cramo’s target is to have EBITA margin higher than 15 percent of sales over a business cycle;
- Capital structure – Cramo’s target is to maintain a solid capital structure and to have a maximum gearing of 100 percent;
- Sales growth – Cramo’s sales growth target is to grow faster than the market;
- Return on equity – ROE is one of the key measurements used in Cramo and the company targets an ROE higher than 12 percent during a business cycle;
- Profit distribution – Cramo’s target is to follow stable profit distribution policy and to pay about 40 percent of earnings per share as dividends.

Cramo’s Capital Markets Day materials are available on the company’s website at www.cramo.com/investors. The company is based in Vantaa, near Helsinki, Finland, and does business in 15 countries in Northern, Central and Eastern Europe.

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