Introduction

Key events of the year

Accelerated growth in Germany

The acquisition of a German construction site logistics company, KBS Infra GmbH, at the beginning of the year strengthened Cramo’s business position in the Central European market and expanded its business model with value-adding services. KBS Infra offers extensive construction site facility management and logistics services as well as on-site electricity services, and is thus typically the first company on the construction site and the last to leave.

KBS Infra’s fleet consists of some 6,000 containers and an extensive range of on-site electricity and other equipment. In addition to the expansion of Cramo’s site-hut fleet in Germany, there is significant cross-selling potential for Cramo’s current equipment rental offering, given that it will be able to gain early access to construction sites.

Cramo aims to further develop its site logistics service offering with a stronger focus on value-adding planning services. With its in-depth expertise in the field, KBS Infra offers an excellent platform for extending the concept Group-wide.

Strengthened position in modular space

In October, Cramo acquired the Swedish-based modular space company Nordic Modular Group Holding AB.  The acquisition is fully in line with Cramo’s Shape and Share strategy. It will strengthen Cramo’s Modular Space business, Cramo Adapteo, on the overall Nordic modular space market by providing in-house development and production capabilities. In addition, the transaction expands Cramo Adapteo’s business model and enables the development of new products and customer solutions.

Nordic Modular Group is an established player in the Nordic modular space market with operations that include the development, manufacture, sale and rental of relocatable buildings. Sweden is its main market, but it also has operations in Norway, Denmark and Finland. With a fleet consisting of some 6,500 modules, it primarily serves municipalities and large private companies.

The Board of Directors pursue towards Cramo Adapteo’s separation

In 2018, Cramo assessed strategic alternatives for its Modular Space business, Cramo Adapteo, in order to release shareholder value. Based on the outcome of its assessment, in December 2018 the Board of Directors of Cramo decided to pursue a spin-off of the company’s Modular Space business to Cramo’s existing shareholders. The transaction and separate listing are expected to take place on Nasdaq Stockholm latest in the third quarter of 2019.

Cramo awarded for its sustainability work

In May, Cramo was awarded the European Rental Association’s (ERA) Sustainability Committee Award 2018. In giving its reasoning for the award, the Committee described Cramo as a pioneering actor in developing a genuinely sustainable approach to rental – work that deserves wider recognition.

Only a month earlier, Cramo President and CEO Leif Gustafsson was awarded Best CEO in the Sustainable Rental Equipment Industry 2018 by European CEO. It was noted that in less than two years Cramo, led by Mr Gustafsson, has put in place a comprehensive sustainability framework that was already producing results in 2017. Being a key driver of the sharing economy is one of his visions for Cramo.

To further strengthen Cramo’s ambitious sustainability work at the Group level, Maria Karlsson was appointed Vice President, Sustainability in July.

Sustainability is embedded in Cramo’s Shape and Share strategy, and Cramo Care is the company’s strategy for integrating sustainability step by step into all parts of its business. Another key component of the sustainability strategy is to actively develop a professional sharing economy. This is a collective term for business-to-business activities aimed at increasing resource efficiency by providing temporary access to underutilised physical assets, thereby effectively reducing the environmental impact. The principle of increased resource efficiency through higher capacity utilisation has constituted the basis of Cramo’s business model for over half a century. The concept of a professional sharing economy is a natural continuation of that mission.

Digital solutions high on the agenda

Cramo’s strategic focus area Shape the Future includes, among other things, an ambition to support the future success of customers and of Cramo through the latest digital technologies and solutions.

A good example of this is Cramo’s launch of its Building information modelling (BIM) service, which Cramo is one of the first players in the rental business to offer. BIM is a well-established 3D model-based method for the design, construction and maintenance of buildings and infrastructure in the construction industry. Cramo is now prepared to provide all the relevant information and 3D models for its rental equipment as BIM-compatible digital files. BIM was first launched as a service in Norway.

BIM supports the value chain in planning, visualising, monitoring and optimising the work of all stakeholders in the construction process as well as their need for equipment, tools and other solutions offered by Cramo. BIM plays an important role in ensuring the efficient supply of machinery and delivery of services and helps Cramo to be an integral part of construction projects.