Ramirent Q3 2011
0 likes534 views
The interim report for January-September 2011 shows significant growth in net sales of 21.5%, with notable improvements in EBITDA and EBIT margins. The company has made six acquisitions and is focusing on strategic expansions while managing market risks due to financial uncertainties. Despite low visibility, positive trends in the Nordic construction market are expected to continue, although the company maintains a cautious outlook for future developments.
More Related Content
Ramirent Q3 2011
- 1. Interim report January- September 2011 9 September 2011 President and CEO Magnus Rosén CFO Jonas Söderkvist
- 2. Q3/11: Good sales growth and profitability continued to improve, but visibility is low JULY – SEPTEMBER 2011 Net sales up 27.2% MEUR 179.2 (140.9) or 21.7% at comparable exchange rates. Organic growth 18.8% EBITDA MEUR 58.6 (42.3) EBITDA-margin 32.7% (30.0%) EBIT MEUR 30.5 (16.6) EBIT-margin 17.0% (11.8%) Gross capex MEUR 119.9 (9.7) Cash flow after investments MEUR -36.8 (14.4) Number of outlets 412 (375) 2
- 3. Highlights JANUARY – SEPTEMBER 2011 Net sales up 21.5% MEUR 463.1 (381.2) or 18.7 % at comparable exchange rates. Organic growth 18.3% EBITDA MEUR 126.8 (90.6) EBITDA-margin 27.4% (23.8%) EBIT MEUR 48.6 (18.5) EBIT-margin 10.5% (4.8%) Gross capex MEUR 196.3 (43.9) Cash flow after investments MEUR -67.9 (23.8) Net debt MEUR 279.8 (197.2) Gearing 91.7% (64.1%) 3
- 4. Six acquisitions and two outsourcing deals year-to-date Outsourcing deal in Finland Outsourcing deal in Acquisition of specialist module Finland Outsourcing deal rental business in Norway in Denmark Outsourcing deal with two subsidiaries in Finland Acquisition of Finnish Acquisition of weather protection Czech rental business rental business End of 2010 2011 2009 Some 50 Acquisition of companies Acquisition of Acquisition of Swedish Danish rental business Swedish rental on our rental business business watch list Aquisition of Acquisition of Outsourcing deal in Norway Czech rental business Czech rental business Capex on acquisitions EUR 104.9 million 1-9/2011 Acquisitive impact approximately 7-8% on sales on an annual level 4
- 5. We further expanded our network Number of outlets all time high at 412 (375) The biggest The biggest The biggest increasein increase in increase in numberof number of number of outletswas outlets was outlets was in Sweden, Sweden, in Sweden, Europe Europe Europe Centraland Central and Central and EuropeEast Europe East Europe East Local head office Outlet Re-renting agents 5
- 6. Progress in achieving the Group’s key strategic objectives Sustainable profitable growth Accelerate growth with acquisitions and outsourcing deals Evaluate entry into new markets Strengthen local offerings and develop solution concepts Operational excellence Develop a common “Ramirent platform” Develop group wide IT platform and realize synergies Maintain strong focus on cost efficiency Balanced risk level Diversified portfolios of customers, products and markets Continuous employee competence development A strong financial position 6
- 7. Ramirent and market outlook as of 9 November 2011 Ramirent reiterates its outlook for 2011 “As a result of increased construction activity and improving price levels, net sales are expected to increase in 2011, and the result before taxes is expected to improve compared to 2010” Market outlook 2011 Overall, the new residential construction, infrastructure and renovation construction markets are expected to develop favourably, especially in the Nordic countries until the end of 2011, while demand for commercial construction remains weak. Also, the improved balance between supply and demand indicates a healthier price level However, due to the current financial turmoil, market risks have increased. Ramirent maintains a cautious stance since uncertainties in the macroeconomic development persist. 7
- 8. Record high level for Nordic construction order books, but growth is fading Order book Nordics (BEUR, real exchange rates)* 16 60 % 14 40 % 12 10 20 % 8 6 0% 4 -20 % 2 0 -40 % Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2007 2008 2009 2010 2011 Skanska NCC Veidekke YIT Lemminkäinen Change in Net sales YoY, R12 Ramirent Change in order backlog YoY, Nordic contruction 11% growth vs. Q3/10 in both real and fixed exchange rates * Order books for Swe, Fin, Nor, Den 8
- 9. Ramirent is prepared to act to possible changes in market conditions Increased list prices Reduced average discount level Refinanced loan facilities Acquired Rogaland Planbygg to gain access to oil & gas industry with stable demand and long term contracts Sold non-performing fleet Increased use of temporary personnel in project business Streamlined administration personnel Updated contingency plans 9
- 10. In a downturn scenario, multiple levers can be pulled Growth Stability Positioning Growth Priorities in a downturn scenario Top line • Keep strong discipline in discount levels and price lists •Increase focus on non-construction business Investments Business cycle •Reduce capex •Sell equipment •Return re-rental equipment and leases Opex •Review organisational structures •Optimise maintenance of equipment to utilisation •Optimise marketing and branding •Reduce indirect costs Strong market Market downturn reduced Recovery in demand conditions and •Postpone non-crucial development need for investments and and increased growth improved cash flow 2008-2010 investments 2011 projects 2004-2007 10
- 11. Ramirent is in good shape to manage possible changes in market conditions Broadest range of equipment and Dynamic Rental SolutionsTM 3,249 dedicated problem solvers Wide network of outlets close to our customers Strong financial position Deriving higher synergies through a more uniform ”Ramirent platform” and brand 11
- 12. SEGMENT REVIEW 12
- 13. Q3 2011 Finland Highlights Historic financial performance MEUR The main growth drivers were 50 45 25 % continued good construction 41 activity during the third quarter 40 36 38 35 37 20 % and an increase in industrial 34 29 31 30 15 % activity. 28 30 10 % 20 Profitability improved based on 5% higher fleet utilisation and 10 improved price levels. 0% 0 -5 % Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2009 2010 2011 Net sales EBIT-% Q3 January - September Full Year Finland 2011 2010 Change Change 2011 2010 Change Change 2010 (EUR) (Local) (EUR) (Local) Net sales, MEUR 45.5 37.5 21% 21% 112.3 101.7 10% 10% 136.9 EBIT, MEUR 10.5 7.1 49% 16.6 10.9 53% 13.7 EBIT-margin 23.2% 18.8% 14.8% 10.7% 10.0% Employees 611 612 0% 603 Outlets 86 83 4% 84 13
- 14. Q3 2011 Sweden Highlights Historic financial performance MEUR Growth was driven by continued 50 45 45 25 % strong demand in residential 41 42 construction, civil engineering 40 36 20 % 35 and public sector. 32 33 31 32 29 Excluding the Hyrman acquisition 30 15 % net sales grew by 18.0% in the third quarter. 20 10 % Geographically activity was 10 5% strongest in the central and southern regions of the country , 0 0% and in the capital city area. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Profitability improved based on 2009 2010 2011 higher capacity utilisation and Net sales EBIT-% healthier price levels. Q3 January - September Full Year Sweden 2011 2010 Change Change 2011 2010 Change Change 2010 (EUR) (Local) (EUR) (Local) Net sales, MEUR 45.4 36.1 26% 22% 128.8 100.3 28% 20% 145.2 EBIT, MEUR 8.2 7.4 10% 21.3 15.0 42% 23.3 EBIT-margin 18.0% 20.6% 16.5% 15.0% 16.1% Employees 622 540 15% 546 Outlets 80 74 8% 73 14
- 15. Q3 2011 Norway Highlights Historic financial performance MEUR The recovery in the residential 45 16 % construction activity continued in 40 14 % 40 the third quarter. 33 12 % 35 31 30 Excluding the Rogaland Planbygg 30 29 27 29 28 27 28 10 % 25 (renamed Ramirent Module 25 8% Systems AS) acquisition net sales 20 6% grew in Norway by 20.9% in the 15 4% third quarter. 2% 10 0% The highest activity was recorded 5 -2 % in the larger Oslo area and 0 -4 % western parts of Norway. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Profitability improved based on 2009 2010 2011 good fleet utilisation, improving Net sales EBIT-% price levels and strict cost control. Q3 January - September Full Year Norway 2011 2010 Change Change 2011 2010 Change Change 2010 (EUR) (Local) (EUR) (Local) Net sales, MEUR 39.7 27.6 44% 41% 102.8 83.3 23% 21% 114.4 EBIT, MEUR 3.9 1.7 136% 6.7 2.2 200% 2.3 EBIT-margin 9.9% 6.1% 6.5% 2.7% 2.0% Employees 523 500 5% 503 Outlets 44 42 5% 42 15
- 16. Q3 2011 Denmark Highlights Historic financial performance MEUR Growth was driven by higher 14 20 % construction activity and 12 11 11 improved fleet utilisation. 12 11 10 10 % 10 9 9 10 10 8 0% 8 Profitability was still burdened 8 -10 % by low price levels. 6 -20 % 4 -30 % Cost control measures continue to improve profitability. 2 -40 % 0 -50 % Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2009 2010 2011 Net sales EBIT-% Q3 January - September Full Year Denmark 2011 2010 Change Change 2011 2010 Change Change 2010 (EUR) (Local) (EUR) (Local) Net sales, MEUR 11.3 9.0 26% 26% 29.6 26.1 13% 13% 35.6 EBIT, MEUR 0.9 -0.2 N/M -0.7 -1.5 N/M -2.2 EBIT-margin 7.5% -1.9% -2.3% -5.6% -6.2% Employees 163 148 10% 160 Outlets 21 20 5% 20 16
- 17. Q3 2011 Europe East Highlights Historic financial performance Net sales grew in all Europe East MEUR countries in the third quarter. 20 19 30 % 17 20 % Growth was driven mainly by 15 12 13 13 10 % 12 infrastructure construction in 11 10 9 0% Russia and energy-related 10 9 8 investments in the Baltic States -10 % and Ukraine. -20 % 5 -30 % Profitability continued to improve 0 -40 % based on higher business volumes Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 and improved price levels. 2009 2010 2011 Net sales EBIT-% Q3 January - September Full Year Europe East 2011 2010 Change Change 2011 2010 Change Change 2010 (EUR) (Local) (EUR) (Local) Net sales, MEUR 17.2 12.3 39% 49% 39.6 29.3 35% 37% 42.7 EBIT, MEUR 4.2 -0.7 N/M 3.5 -4.7 N/M -3.5 EBIT-margin 24.6% -5.7% 8.9% -15.9% -8.3% Employees 440 381 15% 392 Outlets 56 45 24% 48 17
- 18. Q3 2011 Europe Central Highlights Historic financial performance MEUR Growth was driven by continued 25 20 % good construction and industrial 22 15 % 20 activity in Poland, which generated 20 18 19 19 10 % a healthy profit improvement. 16 16 16 14 14 5% 15 12 0% Profitability was burdened by low -5 % 10 price levels and business volumes -10 % especially in the Czech Republic and 5 -15 % Slovakia. -20 % 0 -25 % Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2009 2010 2011 Net sales EBIT-% Q3 January - September Full Year Europe Central 2011 2010 Change Change 2011 2010 Change Change 2010 (EUR) (Local) (EUR) (Local) Net sales, MEUR 21.6 19.7 9% 12% 54.9 47.7 15% 15% 66.6 EBIT, MEUR 3.5 2.2 60% 3.4 -0.1 N/M 0.8 EBIT-margin 16.3% 11.2% 6.2% -0.3% 1.2% Employees 868 825 5% 824 Outlets 125 111 13% 111 18
- 19. FINANCIAL REVIEW 19
- 20. Positive development in financial performance continued in Q3 Net Sales (MEUR) EBITDA (MEUR) EBIT (MEUR) Net sales Y-o-y change-% EBITDA EBITDA-% EBIT EBIT-% 35 31 20 % 200 179 40 % 70 35 % 30 180 59 15 % 150 150 30 % 60 30 % 25 160 141 134 20 % 140 122125130126 129 50 42 41 25 % 20 17 15 10 % 112 10 % 14 120 40 36 37 37 20 % 15 12 11 30 31 7 5% 100 0% 28 10 7 30 26 15 % 80 -10 % 3 18 5 0% 60 20 10 % -20 % 0 40 -5 % -30 % 10 5% -5 20 -4 0 -40 % 0 0% -10 -6 -10 % Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2009 2010 2011 2009 2010 2011 2009 2010 2011 Cash flow (MEUR) Net debt (MEUR) Gross Capex (MEUR) Cash flow after investments Net debt Gearing-% Gross Capex Share of net sales-% 40 28 300 281 280 120 % 140 80 % 30 22 20 24 18 255 120 20 13 14 230 238 120 70 % 250 100 % 207212209197 60 % 10 191 100 200 177 80 % 0 50 % 80 -10 -4 150 60 % 40 % 60 45 -20 -11 30 % 100 40 % 32 -20 40 20 % -30 22 18 -40 50 20 % 20 3 5 3 8 13 10 10 % -37 -50 0 0% 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2009 2010 2011 2009 2010 2011 2009 2010 2011 20
- 21. Net sales grew 27.2% in Q3/2011, organic growth was 18.8% Change in net sales YoY, % 40 % 30 % 27 % 19 % 19 % 19 % 20 % 20 % 16 % 13 % 9% 10 % 3% 0% -4 % -10 % -9 % -20 % -30 % -25 % -27 % -31 % -31 % -40 % Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2008 2009 2010 2011 January-September 2011 Net sales increased by 21.5% (18.3% organically) 21
- 22. Net sales grew in all segments both in euros and at comparable exchange rates Change in Q3 net sales YoY, % 60 % 50 % 49 % 44 % 44 % 43 % 41 % 39 % 40 % 29 % 30 % 27 % 26 % 26 % 26 % 26 % 22 % 21 % 22 % 21 % 20 % 20 % 12 % 9% 10 % 10 % 0% Group Finland Sweden Norway Denmark East Central EUR Comparable exchange rates Adjusted for inter-segment sales (in EUR) Group July - September 2011 Net sales increased by 27.2% (21.7% at comparable exchange rates) 22
- 23. Capital turnover continued to develop positively Invested capital by quarter MEUR 800 160 % 708 707 700 654 140 % 586 588 600 562 581 578 565 552 544 120 % 536 515 524 508 509 496 508 494 500 100 % 400 80 % 300 60 % 200 40 % 100 20 % 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2007 2008 2009 2010 2011 Invested capital Net sales/Invested capital Rolling 12 month basis Capital turnover amounted to 112% (96%) at the end of September 2011 23
- 24. Gross margin improved compared to previous year but is still below pre-downturn level Gross margin by quarter 72 % 71 % 71 % 71 % 71 % 71 % 70 % 70 % 70 % 69 % 69 % 69 % 68 % 68 % 68 % 68 % 68 % 67 % 67 % 67 % 67 % 66 % 66 % 65 % 65 % 65 % 64 % 63 % 62 % Q1 Q2 Q3 Q4 FY Gross margin 2008 Gross margin 2009 Gross margin 2010 Gross margin 2011 Gross margin is impacted by price pressure and increased equipment transportation and use of external services 24
- 25. Recovery in demand and acquisitions increased the workforce Number of employees by segment 1 000 879 868 900 825 800 700 633 622 612 611 563 600 540 523 500 518 500 440 411 381 400 300 200 148 160 163 100 0 Finland Sweden Norway Denmark Europe East Europe Central Personnel 30/09/10 Personnel 30/06/11 Personnel 30/09/11 At the end of September 2011, the Group’s workforce amounted to 3,249 (3,025) persons At the end of December 2010, the Group’s workforce amounted to 3,048 (3,021) persons 25
- 26. Number of outlets increased further Number of outlets per segment 450 412 400 359 125 350 99 300 44 21 56 250 57 3718 52 200 150 80 100 50 96 86 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2008 2009 2010 2011 Finland Sweden Norway Denmark Europe East Europe Central 26
- 27. Fixed cost level increased due to acquisitions Fixed costs by quarter MEUR 80 73 70 63 66 63 62 60 57 57 56 56 29 52 52 54 25 50 24 27 25 22 23 22 23 22 19 22 40 30 20 44 41 35 33 33 33 33 38 37 37 30 32 10 0 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2008 2009 2010 2011 Employee benefit expenses Other operating expenses The fixed cost level increased year-on-year due to an increase in the use of outsourced services, a higher number of employees, intensified sales activities and expenses related to development of Ramirent’s common platform and outlet network, as well as acquisitions. 27
- 28. Q3 EBIT margin increased to 17.0% EBIT margin by quarter 25 % 19.6 % 20 % 18.2 % 18.4 % 17.0 % 15 % 11.8 % 10.8 % 10.3 % 9.0 % 10 % 7.5 % 5.9 % 5.8 % 5% 2.0 % 0% -5 % -2.9 % -5.0 % -10 % -11.4 % -15 % Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2008 2009 2010 2011 Q3/2011 EBIT-margin was 17.0% (11.8%) 28
- 29. Q3 EBIT margin improved in most segments compared to previous year EBIT-margin by segments 30 % 24.6 % 25 % 23.2 % *20.6 % 20 % 18.8 % 18.0 % 17.0 % 16.3 % 15 % 11.8 % 11.2 % 9.9 % 10 % 7.5 % 6.1 % 5% 0% -1.9 % -5 % -5.7 % -10 % Group Finland Sweden Norway Denmark East Central Q3 2010 Q3 2011 *Adjusted for 2 MEUR in one-offs the EBIT margin was 15% in Q3 2010 in Sweden 29
- 30. Q3 2011 fleet investment rose to EUR 66.8 million Purchased and sold equipment by quarter MEUR 80 70 66.8 60 50 38.3 40 29.6 30 18.9 17.4 20 7.5 8.9 10 6.7 6.5 5.2 6.0 4.4 5.0 4.7 5.0 3.7 3.3 4.4 3.7 2.0 3.7 2.1 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2009 2010 2011 Purchased equipment Sold equipment In July-September 2011, gross capital expenditure was EUR 119.9 (9.7) million of which EUR 66.8 (8.9) million in rental fleet. The value of sold rental equipment was EUR 6.0 (3.3) million. In January-September 2011, gross capital expenditure was EUR 196.3 (43.9) million of which EUR 134.8 (35.3) million in rental fleet. The value of sold rental equipment was EUR 14.9 (12.0) million. 30
- 31. Due to acquisitions capital expenditure increased most in Norway and Sweden Capital Expenditure by segments MEUR 250 196 200 150 100 83 61 44 50 29 21 13 8 10 12 1 5 3 5 0 Group Finland Sweden Norway Denmark East Central 1-9/2010 1-9/2011 31
- 32. Working capital is at 6% of net sales Working capital by quarter MEUR 120 10 % 8% 80 124 6% 109 88 90 90 99 97 95 86 80 83 40 4% 2% 16 15 15 15 15 14 14 16 16 17 17 0 0% -2 % -66 -68 -70 -67 -69 -40 -86 -86 -89 -82 -84 -4 % -107 -80 -6 % -8 % -120 -10 % Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2009 2010 2011 Inventories Trade and other receivables Trade payables and other liabilities Working capital/Net sales Rolling 12 month basis 32
- 33. Cash flow after investments EUR -67.9 million due to increased fleet investments and acquisitions Cash flow versus change in net debt MEUR 90 70 50 82 30 56 67 48 42 10 25 28 22 24 18 20 5 13 14 14 -11 -11 -10 -30 -23 -2 -21 -20 -22 -26 -25 -4 -37 -12 -30 -55 -59 -50 -70 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2008 2009 2010 2011 Cash flow after investments Change in net debt Change in net debt in 1-9/2011 is affected by dividend pay-out of EUR 27.0 million and purchase of own shares by EUR 3.4 million 33
- 34. Gearing increased to 92% due to acquisitions Net debt and gearing MEUR 400 113 % 120 % 106 % 108 % 350 96 % 81 % 99 % 100 % 86 % 92 % 300 84 % 69 % 74 % 80 % 70 % 71 % 80 % 250 68 %68 % 64 % 60 % 200 56 % 60 % 150 40 % 100 20 % 50 0 0% 2004200520062007 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2008 2009 2010 2011 Net debt Gearing (%) Equity ratio decreased to 38.2% (46.1%) Net debt amounted to EUR 279.8 (197.2) million 34
- 35. Debt maturity extended Repayment schedule of interest-bearing liabilities 300 250 200 MEUR 150 100 50 0 2012 2013 2014 2015 2016 2017 On 4 November 2011, Ramirent Plc's syndicated credit facility agreement totalling EUR 240 million was amended to mature fully in 2017. Ramirent has committed loan facilities for a total of EUR 390 million. At end of Q3 2011, Ramirent had unused committed back-up facility of EUR 82.9 million 35 35
- 36. MORE INFORMATION www.ramirent.com Magnus Rosén, CEO +358 20 750 2845 [email protected] Jonas Söderkvist, CFO +358 20 750 3248 [email protected] Franciska Janzon, IR +358 20 750 2859 [email protected] 36
- 37. COMPANY OVERVIEW 37
- 38. Ramirent in brief Leading equipment rental company in Northern, Central and Eastern Europe with net sales of EUR 531 million (2010) 412 rental customer centers located in 13 countries and providing 200 000 rental items 3 249 employees serving 100 000 customers Founded in 1955 and headquartered in Finland Listed on NASDAQ OMX Helsinki since 1998 38
- 39. More than 50 years of experience as a supplier to the construction industry Greenfield Steel Nail shop First move entry to Rakennusmies outside Finland Enter Acquires Czech Republic founded through JV in Lithuania Bautas in Moscow, Russia Norway The rental Acquires business is MBO by key Enter Altima in established personnel and Poland Sweden capital investors 1955 1983 1988 1994 1995 1996 1997 1998 2000 2001 2002 2003 2004 2005 2006 2008 Acquired by Partek Enter Renamed Enter and renamed Latvia Ramirent Ukraine A-rakennusmies Plc Enter The third county Slovakia becomes Estonia with Listed on the Greenfield the expansion to Helsinki Stock entry to Tallinn Exchange Hungary 39
- 40. Our strategic choices Vision To be the leading and most progressive equipment rental solutions company in Europe, setting the benchmark for industry performance and customer service Mission We simplify business by Delivering Dynamic Rental Solutions™ Values Open, Progressive, Engaged Brand promise Let’s solve it 40
- 41. One of the leading equipment rental companies both in Europe (#3) and globally (#12) Largest rental companies in Europe Largest rental companies globally Turnover 2010 (MEUR) Turnover 2010 (MEUR) Aggreko Loxam United Rentals Cramo* Ashtead Group Ramirent RSC Equipment Rental Algeco… Algeco Scotsman Speedy Hire Coates Hire Ltd Sarens Hertz Equipment Rental Liebherr-… Kiloutou Loxam Mediaco… Nishio Rent All Co HKL… Nikken Corp Cramo* Ramirent 0 200 400 600 800 1000 0 500 1000 1500 2000 *Cramo + Theisen PF Source: IRN June 2011 41
- 42. Nordic countries are our largest markets and construction is our largest customer sector Sales per segment 1-9/2011 Sales per customer sector 2010 Europe Households Central Public sector 5% 12 % Finland 5% Europe 24 % Construction East 76% 8% Industry 14 % Denmark 6% Norway Sweden 22 % 28 % 42
- 43. Leading market positions in all our markets Finland 86 depots Sweden (25 franchises) 80 depots Market #1 (10 franchises) Employees Norway Market #2 44 depots Russia1 Europe Finland (4 franchises) 7 depots Central 611 Market #1 10 re-renting 868 agents Market #1 Baltic 42 depots Market #2 Total Denmark 3,249 Poland2 21 depots Sweden Market #1 44 depots Europe 622 Market #1 Ukraine East 7 depots 440 Market #~4 Slovakia Czech Denmark 36 depots Norway 27 depots (17 franchises) 163 523 (7 franchises) Market #1 Market #~3 Hungary2 18 depots Market #1 1) St Petersburg + Moscow 2) Excl. Fomrworks business 43
- 44. Offering is structured into eight core product groups TOWER CRANES LIFTS HEAVY MACHINERY AND HOISTS SCAFFOLDING SAFE (SAFETY AND MODULES FORMWORKS EQUIPM.) LIGHT MACHINERY POWER & HEATING 44
- 45. Broadest range of equipment and Dynamic Rental SolutionsTM …. Rental Solution Concepts Ramirent offers a range of customer needs-driven & value-adding turnkey rental solution concepts, driving the problem-solving approach and the promise of Let’s solve it Rental services • Operators • Planning, design • Fuel / gas refilling • Ramirent know-how • Facility management • Transportation/Installation • Technical support • Maintenance/Inspections • Site logistics coordinator • Insurance • Paperwork Equipment rental • Scaffolding • Lifts • Power & Heating • Modules • SAFE • Heavy Machinery • Light Machinery • Tower Cranes & Hoists 45
- 46. The long-term growth drivers are still in place Increasing European consolidation High potential CEE rental penetration opportunities construction markets Ramirent Loxam 70 % Cramo Algeco Scotsman Speedy Hire Liebherr-Mietpartner 60 % GAM Mediaco Lifting Sarens Kiloutou 50 % HKL Baumschinen Others 40 % 30 % 20 % 10 % 0% EU FI DK SE UK avg. Top 10 companies account for 19% Note: Finland company estimate of the Europe market of 20.2 BEUR Inhabitants (million) Construction output (BEUR) 46
- 47. Financial targets • ROI >18 % p.a. over a business cycle • EPS growth > 15 % p.a. over a business cycle • Gearing ≤ 120 % at end of each fiscal year • Dividend pay-out > 40 % of earnings per share 47
- 48. Long-term EBIT and ROI development EBIT and ROI development 35 % 30 % 25 % 23% 20 % 18% 15 % 10 % 5% 0% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 EBIT margin ROI EBIT margin (average) ROI (average) 48
- 49. APPENDIX 49
- 50. CONSOLIDATED INCOME STATEMENT (EUR 1,000) 7-9/11 7-9/10 1-9/11 1-9/10 1-12/10 Net sales 179 211 140 898 463 089 381 172 531 284 Other operating income 317 248 986 1 160 1 616 Materials and services -55 093 -44 756 -146 537 -126 074 -177 118 Employee benefit expenses -41 028 -31 956 -114 257 -98 044 -136 214 Depreciation and amortisation -28 078 -25 682 -78 165 -72 091 -97 716 Other operating expenses -24 816 -22 129 -76 477 -67 644 -92 122 EBIT 30 511 16 623 48 639 18 479 29 731 Financial income 4 869 247 8 975 9 965 13 780 Financial expenses -9 728 -4 856 -19 603 -16 352 -22 658 EBT 25 653 12 015 38 011 12 093 20 853 Income taxes -6 951 -3 480 -10 339 -4 577 -6 212 NET RESULT FOR THE PERIOD 18 702 8 535 27 672 7 515 14 640 Net result for the period attributable to: Owners of the parent company 18 702 8 535 27 672 7 515 14 640 Non-controlling interest - - - - - TOTAL 18 702 8 535 27 672 7 515 14 640 Earnings per share (EPS), basic and diluted, EUR 0.17 0.08 0.26 0.07 0.13 50
- 51. BALANCE SHEET – ASSETS (EUR 1,000) 30.9.2011 30.9.2010 31.12.2010 NON-CURRENT ASSETS Property, plant and equipment 477 071 432 749 427 248 Goodwill 122 058 93 154 93 211 Other intangible assets 33 931 10 345 10 348 Available-for-sale investments 1 309 603 422 Deferred tax assets 18 285 10 473 13 325 NON-CURRENT ASSETS, TOTAL 652 653 547 323 544 555 CURRENT ASSETS Inventories 17 233 14 259 15 856 Trade and other receivables 124 188 98 667 96 616 Current tax assets 1 706 2 920 2 902 Cash and cash equivalents 3 184 4 449 1 352 CURRENT ASSETS, TOTAL 146 310 120 296 116 727 TOTAL ASSETS 798 963 667 619 661 282 51
- 52. BALANCE SHEET – EQUITY AND LIABILITIES (EUR 1,000) 30.9.2011 30.9.2010 31.12.2010 EQUITY Share capital 25 000 25 000 25 000 Revaluation fund -3 877 -3 309 -2 472 Invested unrestricted equity fund 113 329 113 329 113 329 Retained earnings 170 807 172 529 181 783 PARENT COMPANY SHAREHOLDERS’ EQUITY 305 259 307 549 317 640 Non-controlling interests - - - EQUITY, TOTAL 305 259 307 549 317 640 NON-CURRENT LIABILITIES Deferred tax liabilities 71 436 56 508 60 413 Pension obligations 8 546 6 456 6 866 Provisions 1 783 2 510 2 347 Interest-bearing liabilities 211 597 160 296 137 384 Other long-term liabilities 14 181 2 200 2 200 NON-CURRENT LIABILITIES, TOTAL 307 544 227 970 209 209 CURRENT LIABILITIES Trade payables and other liabilities 106 795 86 205 89 480 Provisions 808 1 890 1 762 Current tax liabilities 7 136 2 690 2 658 Interest-bearing liabilities 71 422 41 314 40 533 CURRENT LIABILITIES, TOTAL 186 161 132 100 134 433 LIABILITIES, TOTAL 493 704 360 070 343 642 TOTAL EQUITY AND LIABILITIES 798 963 667 619 661 282 52
- 53. KEY FIGURES MEUR 7-9/11 7-9/10 Change 1-9/11 1-9/10 Change 1-12/10 Net sales 179.2 140.9 27.2% 463.1 381.2 21.5% 531.3 EBITDA 58.6 42.3 38.5% 126.8 90.6 40.0% 127.4 % of net sales 32.7% 30.0% 27.4% 23.8% 24.0% EBIT 30.5 16.6 83.5% 48.6 18.5 163.2% 29.7 % of net sales 17.0% 11.8% 10.5% 4.8% 5.6% Earnings per share (EPS), (basic and diluted), EUR 0.17 0.08 120.4% 0.26 0.07 270.3% 0.13 Gross capital expenditure 119.9 9.7 N/M 196.3 43.9 347.2% 62.0 Gross capital expenditure,% of net sales 66.9% 6.9% 42.4% 11.5% 11.7% Cash flow after investments -36.8 14.4 -355.5% -67.9 23.8 -385.9% 48.0 Invested capital at the end of period 588.3 509.2 15.5% 495.6 Return on invested capital (ROI), % 1) 13.2% 5.4% 8.6% Return on equity (ROE), % 1) 11.4% -0.6% 4.7% Net debt 279.8 197.2 41.9% 176.6 Gearing, % 91.7% 64.1% 55.6% Equity ratio, % 38.2% 46.1% 48.0% Personnel at end of period 3 249 3 025 7.4% 3 048 1) The figures are calculated on a rolling twelve month basis. 53
- 54. CONDENSED CASH FLOW STATEMENT MEUR 7-9/11 7-9/10 1-9/11 1-9/10 Change 1-12/10 Cash flow from operating activities 82.4 24.8 133.4 64.4 107.1% 104.2 Cash flow from investing activities -119.1 -10.3 -201.3 -40.6 -395.2% -56.2 Cash flow from financing activities Borrowings / repayment of short-term debt -10.5 -8.0 38.1 4.8 694.2% 0.6 Borrowings / repayment of long-term debt 48.4 -2.4 62.0 -7.6 917.2% -29.8 Purchase of treasury shares - -2.0 -3.4 -2.0 -67.8% -2.9 Dividends paid - - -27.0 -16.3 -65.6% -16.3 Cash flow from financing activities 37.9 -12.4 69.7 -21.1 430.5% -48.5 Net change in cash and cash equivalents 1.2 2.0 1.8 2.6 -30.9% -0.5 Cash and cash equivalents at the beginning of the period 2.0 2.4 1.4 1.8 -24.9% 1.8 Translation difference on cash and cash equivalents 0.1 - 0.1 - N/M 0.1 Net change in cash and cash equivalents 1.1 2.0 1.7 2.6 -34.1% -0.5 Cash and cash equivalents at the end of the period 3.2 4.4 3.2 4.4 -28.4% 1.4 54
- 55. SEGMENT INFORMATION Net sales, MEUR 7-9/11 7-9/10 Change 1-9/11 1-9/10 Change 1-12/10 Finland, net sales (external) 44.6 37.2 19.8 % 109.4 100.4 8.9 % 135.2 -Inter-segment sales 0.9 0.3 229.1 % 2.9 1.3 123.2 % 1.8 Sweden, net sales (external) 45.3 36.0 25.7 % 128.4 99.8 28.6 % 144.5 -Inter-segment sales 0.1 0.0 133.9 % 0.4 0.5 -18.8 % 0.7 Norway, net sales (external) 39.5 27.5 43.6 % 102.3 82.9 23.4 % 113.7 -Inter-segment sales 0.2 0.1 295.7 % 0.4 0.4 16.6 % 0.7 Denmark, net sales (external) 11.3 8.7 29.4 % 29.2 24.2 20.5 % 32.9 -Inter-segment sales 0.0 0.2 -100.0 % 0.4 1.9 -79.2 % 2.7 Europe East, net sales (external) 17.1 11.9 43.3 % 39.4 27.2 45.0 % 39.5 -Inter-segment sales 0.1 0.4 -86.7 % 0.2 2.2 -92.0 % 3.2 Europe Central, net sales (external) 21.4 19.5 10.1 % 54.4 46.7 16.6 % 65.4 -Inter-segment sales 0.1 0.2 -45.8 % 0.5 1.0 -50.9 % 1.2 Elimination of sales between segments -1.4 -1.2 -12.0 % -4.8 -7.2 33.6 % -10.2 Net sales, total 179.2 140.9 27.2 % 463.1 381.2 21.5 % 531.3 55
- 56. EBIT BY SEGMENT EBIT (EUR million) 7-9/11 7-9/10 Change 1-9/11 1-9/10 Change 1-12/10 Finland 10.5 7.1 49.2% 16.6 10.9 53.0% 13.7 % of net sales 23.2% 18.8% 14.8% 10.7% 10.0 % Sweden 8.2 7.4 9.9% 21.3 15.0 41.5% 23.3 % of net sales 18.0% 20.6% 16.5% 15.0% 16.1 % Norway 3.9 1.7 136.4% 6.7 2.2 199.6% 2.3 % of net sales 9.9% 6.1% 6.5% 2.7% 2.0 % Denmark 0.9 -0.2 N/M -0.7 -1.5 53.2% -2.2 % of net sales 7.5% -1.9% -2.3% -5.6% -6.2 % Europe East 4.2 -0.7 N/M 3.5 -4.7 N/M -3.5 % of net sales 24.6% -5.7% 8.9% -15.9% -8.3 % Europe Central 3.5 2.2 59.8% 3.4 -0.1 N/M 0.8 % of net sales 16.3% 11.2% 6.2% -0.3% 1.2 % Net items not allocated to operating segments -0.7 -0.9 14.7% -2.2 -3.4 33.4% -4.7 Group EBIT 30.5 16.6 83.5% 48.6 18.5 163.2% 29.7 % of net sales 17.0% 11.8% 10.5% 4.8% 5.6 % 56
- 57. LARGEST SHAREHOLDERS % of Market Cap EUR 504.4 million Largets shareholders Number of share on 30 September 2011 shares 8.7 % capital 1 Nordstjernan AB 31 882 078 29,33 34.9 % 2 Julius Tallberg Oy Ab 11 962 229 11,00 3 Varma Mutual Pension Insurance Company 7 831 299 7,20 4 Ilmarinen Mutual Pension Insurance Company 5 637 214 5,19 40.9 % 5 Tapiola Mutual Pension Insurance Company 2 407 668 2,22 15.5 % 6 Odin Norden 1 835 228 1,69 Foreign owners 7 Veritas Pension Insurance Company Ltd 1 463 000 1,35 8 Odin Finland 1 426 259 1,31 Nominee registered 9 Odin Europa Smb 1 347 355 1,24 Finnish companies and 1 094 002 1,00 organisations 10 Investment Fund Aktia Capital Finnish households Ramirent’s treasury shares 680 192 0,60 Nominee registered shares 16 829 829 15,48 Other shareholders 24 300 975 22,36 Total number of shares 108 697 328 100,00 Trading information Listing: NASDAX OMX Helsinki Date of listing: April 30, 1998 Segment: Mid Cap Sector: Industrials Trading code: RMR1V 57
- 58. EUR 2.48 4.97 7.45 9.94 12.42 14.90 17.39 20 40 60 80 0 120 140 160 180 100 22.36 19.87 2007-01 2007-03 2007-05 2007-07 2007-09 2007-11 2008-01 2008-03 Share turnover 2008-05 2008-07 2008-09 2008-11 2009-01 2009-03 Share price development 2009-05 Ramirent 2009-07 2009-09 2009-11 2010-01 2010-03 Sector 2010-05 2010-07 2010-09 2010-11 2011-01 2011-03 2011-05 2011-07 OMX Helsinki 2011-09 2011-10 50 100 150 200 250 300 58 MEUR
- 59. Thank you!