Shaping our business for future growth
We have started to execute our Shape and Share growth strategy, with its new financial and non-financial targets, focus areas and strategic steps. 2017 was an inspiring year, marked by innovation, digitalisation and focus on our people – all of which build sustainable value for our customers and other stakeholders.
FINANCIAL TARGETS 2017–2020
ROCE, % >14.5
Organic sales growth >Market
ROCE, % > 12.5
Organic rental sales growth Double digit
Net debt / EBITDA <3
ROE, % >15
Dividend payout ratio, % ~40
Customer satisfaction index >70
LTIR (Lost time injury rate) ≤5
Number of work-related accidents with at least one full day absence/Million working hours
CO2 emissions −20
scope 1 and 2, relative sales (tonnes/MEUR), %
STRATEGIC STEPS 2017–2020
- Implementing Group-wide processes and tools
- Living the Cramo Story
- Establishing the renewed Cramo Care
- Shaping the business structure and model
- Enhancing the performance culture
- Creating a new digital concept
- Striving for zero accidents
- Building a new footprint in chosen markets
- Targeting organic and inorganic growth
- Continuously evaluating potential acquisition target companies and striving for a leading position in chosen markets
In the beginning of the year, we divided our operations into two stand-alone business divisions, Equipment Rental and Modular Space.
However, shaping means more than new business structure. During the year, we also sharpened our offerings as well as shaped and aligned our processes and tools along with the way we work together and share our solutions and insights with stakeholders. Capturing the opportunities of digitalisation through Cramo’s digital strategy, and the digital platform based on it, has played an important role in this.
Leading the digital revolution in rental
One example of our industry-leading digital openings is the Cramo eCRent e-commerce solution. The solution makes life easier for our customers by providing flexible access to our rental offering and services with the option of analysing their rentals or managing the return of equipment – no matter the time or place. But this is only the beginning. There are many customer service functionalities in the pipeline that will help us serve our customers even better and which offer opportunities for deeper co-operation and integration.
We have also digitalised our main internal processes to benefit from more efficient operations. To improve co-operation and enhance integration with our suppliers, we have adopted a digital purchase-to-pay solution.
The benefits of digitalisation in our transport management processes are clear and include increased cost-effectiveness, better control and overview, better integration with transport partners, enhanced opportunities for co-development and a reduced environmental impact through optimisation of transport.
Around 12,000 of our rental items are now digitally connected (IoT) and provide us with information that enables us to help customers optimise their use of rental equipment and allows us to make the right decisions concerning equipment maintenance needs, for example.
A fast-learning, innovative organisation is one way for us to ensure our success and that of our customers in the changing operating environment.
Walking the innovation talk
The operating environment in almost all industries is changing rapidly, and remarkable disruptive developments are still to come. Competition can come from new emerging industries with new kinds of business models based on the sharing economy. In this situation, Cramo has decided to take the leadership role as the shaper of the whole industry.
As part of this, and in order to address customers’ needs more precisely, we are engaging all our employees in a strong innovation culture at Cramo. For us, innovation means structured, solution-driven processes to identify and solve customer problems and challenges in partnership with them. We encourage a solution-driven attitude, and share and adopt best practices throughout the company.
A fast-learning, innovative organisation is one way for us to ensure our success and that of our customers in the changing operating environment. In addition, we continuously challenge our existing business model as well as evaluate different novel service and other concepts to ensure the highest value to our customers and other stakeholders.
People make the difference
We believe that people make the difference between an average customer experience and a great one. This is one of the reasons why we have chosen enabling our people to perform as one of the four focus areas in our new strategy. As part of this, a new People Strategy was launched at the end of the year. Through this strategy, we support our employees’ ability to perform in the changing operating environment, communicate the opportunities we offer for personal and professional development, and attract potential employees with the right qualifications to ensure the company’s future success.
Our new brand platform, also introduced during the year, furthermore enhances the competitiveness of Cramo in the eyes of potential employees. The new brand more clearly expresses what Cramo is and what it stands for.
"Since 2009, Cramo has been a signatory to the UN Global Compact, supporting the ten principles with respect to human rights, labour, environment and anti-corruption."
President and CEO
Further integrating sustainability into our business
Sustainability is embedded in our strategy and – like the whole Cramo business model – is driven by the responsible sharing of safe, sustainable solutions and other resources as well as the transparent sharing of information. Our ambition is to take the lead in advancing sustainability in the rental industry and to meet the requirements of our stakeholders and internationally recognised standards.
Our sustainability strategy, Cramo Care, is integrated into our decision-making and daily work through the Cramo Care programme with its four focus areas: Customer Care, Employee Care, Environmental Care and Social Care. To ensure continuous improvement and good social, environmental and financial performance, Cramo Care defines the targets, key performance indicators (KPIs) and long-term vision for our sustainability strategy.
In 2017, we readjusted our sustainability policies regarding our focus areas and started to roll them out through the new Cramo Care Manager organisation that, together with local managers and specialist functions, will develop and implement sustainability action plans locally. In addition, as part of our responsibility work concerning our suppliers, we affirmed our Supplier Code of Conduct and began its implementation throughout the supplier chain. We are also committed to implementing ISO 9001, ISO 14 001 and ISO 45 0001 standards Group-wide and work actively, taking the necessary actions to fulfil this commitment. Read more in our separate GRI report, available on Cramo’s website.