Rr results q2_2015_en_final
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Ramirent reported improved financial performance in Q2 2015 compared to Q2 2014 due to higher demand and efficiency actions. Key highlights included: - Net sales increased 5.0% to €159.4 million, driven by growth in Sweden, Denmark, and the Baltics. - EBITA improved 30.2% to €21.0 million due to sales growth and cost reductions from centralizing maintenance and establishing a shared services center. - ROI improved to 12.3% from 11.9% over the last 12 months due to higher margins and a reduced non-productive fleet.
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Rr results q2_2015_en_final
- 1. © 2015 Ramirent PERFORMANCE IMPROVING DUE TO HIGHER DEMAND AND EFFICIENCY ACTIONS 6 August 2015 Magnus Rosén, President and CEO Jonas Söderkvist, CFO and EVP Corporate Functions Q2 Interim report January–June 2015
- 2. Agenda 2 Group performance Segment review Market outlook Key figures Financial position Company overview Appendix
- 3. © 2015 Ramirent 3 Q2/2015: Performance improving due to higher demand and efficiency actions Key figures Q2/2015 Business performance Market situation Net sales up by 5.0% or by 6.9% at comparable exchange rates EBITA 21.0 (16.2) MEUR or 13.2% (10.7%) of net sales EBITA excl. non-recurring items improved by 6.7% to 17.2 (16.2) MEUR and was 10.8% (10.7%) of net sales Profit for the period 13.2 (7.1) MEUR and EPS 0.12 (0.07) up by 84.2% ROI % on a rolling 12 months basis improved to 12.3% (11.9%) Second-quarter sales grew in all segments except Norway, where demand was hampered by lower demand from building construction and cautiousness in the oil and gas sector Higher demand improved topline especially towards the end of the quarter Performance improving from implemented efficiency actions in particular the centralising of maintenance and repair operations, reduction of non-productive fleet and from establishing a shared service centre for financial services Interim report January–June 2015 l 6 August 2015 In Sweden, strong demand from residential and infrastructure construction Challenging market conditions in Finland and Norway continued Demand in the Danish equipment rental market picked up Balanced market activity in the Baltics Improving demand in Europe Central supported by construction of roads, industrial buildings and power plants
- 4. © 2015 Ramirent 4 Sales growth supported by improved market activity and good progress in Solutions projects Change in net sales Q2/2015 5.0% 6.9% 0% 1% 2% 3% 4% 5% 6% 7% 8% Q2/2015 reported Q2/2015 at comparable exchange rates Net sales (MEUR) Q2/2015 Second-quarter net sales grew by 6.9% at comparable exchange rates Reported sales were up by 5.0% compared to the previous year 151.8 159.4 0 20 40 60 80 100 120 140 160 180 Q2/2014 reported Q2/2015 reported Second-quarter net sales 159.4 (151.8) MEUR Sales growth was strongest in Sweden supported by large Solutions projects Interim report January–June 2015 l 6 August 2015
- 5. © 2015 Ramirent 5 Profits improving as a result of increased demand and efficiency actions 10.7% 13.2% 10.8% 0% 2% 4% 6% 8% 10% 12% 14% Q2/2014 Q2/2015 Q2/2015 excl. non-recurring items Second–quarter EBITA amounted to 21.0 (16.2) MEUR or 13.2% (10.7%) of net sales EBITA was positively impacted by the settlement of earn-out in the weather shelter and scaffolding company DCC acquired in 2014, resulting in EUR 3.8 million of non-recurring income in the second quarter EBITA margin Q2/2015 EBITA (MEUR) Q2/2015 16.2 21.0 17.2 0 2 4 6 8 10 12 14 16 18 20 22 Q2/2014 Q2/2015 Q2/2015 excl. non-recurring items Second-quarter EBITA improved by 30.2% or by 6.4% excluding non-recurring items compared to the previous year Group EBITA was supported by increase in Customer Centre sales, progress in Solutions projects as well as good fixed cost control Performance improving from implemented efficiency actions in particular the centralising of maintenance and repair operations, reduction of non-productive fleet and from establishing a shared service centre for financial services Interim report January–June 2015 l 6 August 2015
- 6. © 2015 Ramirent 6 Interim report January–June 2015 l 6 August 2015 Second-quarter ROI improved as a result of higher margins Return on invested capital % (rolling 12 months) Return on equity % (rolling 12 months) 11.9% 12.3% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% Q2/2014 Q2/2015 On a rolling 12 months basis ROI improved to 12.3% (11.9%) ROI was supported by a higher share of service sales, improved margins and reduction of non- productive fleet On a rolling 12 months basis, Return on equity (ROE) was 11.5% (12.1%*) at the end of the second quarter 12.1%* 11.5% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% Q2/2014 Q2/2015 *Tax rate in the period July 2013 to June 2014 was artificially low due to changes in tax rates in the end of 2013
- 7. © 2015 Ramirent 7 Ramirent signed a nationwide lift rental agreement with Statoil in Norway Ramirent signed a nationwide four-year frame agreement with Statoil in Norway for the rental of lifts According to the agreement, Ramirent will supply lifts to be used for modification and maintenance work at Statoil's onshore facilities in Norway The agreement extends Ramirent’s offer to the Oil & Gas industry to also cover access equipment Interim report January–June 2015 l 6 August 2015
- 8. © 2015 Ramirent 8 Ramirent and NCC Roads explore possibilities for closer cooperation in road and traffic safety Ramirent and NCC Roads signed a Letter of Intent to explore possibilities for closer cooperation in road and traffic safety in all Nordic countries Ramirent’s network of 200 customer centres in the Nordic region provides good synergies in working together with NCC Roads Interim report January–June 2015 l 6 August 2015
- 9. © 2015 Ramirent 9 Our efficiency programme and work on the improvement agenda NextRamirent proceeded Interim report January–June 2015 l 6 August 2015 More proactive More competent More conscious More safe and green More efficient EXAMPLES OF INITIATIVES H1/2015 • Developing Solutions sales and Customer Centre sales organisations • Building centres of excellence in Solutions sales • Sales performance management • Developing pricing management procedures • New management structure • Participation in Tekniksprånget (Technology Lead) internship programme run by IVA (Ingenjörsvetenskapsakademien) • Introducing Ramirent management trainee programme • Successful introduction of fall protection brand GuardLite™ in Sweden and Norway • LoI signed with NCC Roads to explore cooperation possibilities in road & traffic safety • Centralising repair and maintenance operations • Reducing non-productive and non-available fleet • Shared Service Centre in Estonia • eProcurement system implemented
- 10. 10 Group performance Segment review Market outlook Key figures Financial position Company overview Appendix
- 11. © 2015 Ramirent 11 Finland Q2/2015: Price pressure and slow underlying demand except in Southern Finland Net sales (MEUR)Highlights Q2/2015 36.4 39.0 39.4 0 5 10 15 20 25 30 35 40 45 50 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 ProfitabilityKey figures Demand in the Finnish market was sluggish, except for Southern Finland where demand for rental equipment was supported by ongoing construction activity EBITA margin was impaired by price pressure and a higher share of services income compared to last year Net sales up by 1.0% 0% 5% 10% 15% 20% 25% 30% Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 EBITA-margin (%) ROCE (%) R12 Interim report January–June 2015 l 6 August 2015 Key figures 4–6/15 4–6/14 Change 1–6/15 1–6/14 Change Net sales 39.4 39.0 1.0% 71.5 70.6 1.1% EBITA 4.5 6.0 −25.7% 5.3 8.9 −41.1% % of net sales 11.3% 15.4% 7.4% 12.7% Capex 9.9 22.3 −55.6% 14.0 26.5 −47.1% Capital employed 117.2 127.0 −7.7% ROCE (%) 12.9% 19.9% Personnel (FTE) 482 532 −9.4% Customer centres 59 68 −13.2%
- 12. © 2015 Ramirent 12 Sweden Q2/2015: Sales growth driven by high construction activity Net sales (MEUR)Highlights Q2/2015 53.1 48.7 56.8 0 10 20 30 40 50 60 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Key figures Sales growth was supported by high construction activity, progress in Solutions projects and the acquisition of weather shelter and scaffolding company DCC EBITA improved due to higher sales, price levels and fleet utilisation rates EBITA includes a non-recurring income of 3.8 MEUR from the settlement of earn-out in the acquisition of the company DCC Net sales up by 16.6% or by 20.0% at comparable exchange rates 1) EBITA excluding non-recurring items was EUR 8.3 million or 14.6% of net sales in April–June 2015 and EUR 13.4 million or 12.4% in January–June 2015. The settlement of earn-out in the weather shelter and scaffolding company DCC acquired in 2014, resulted in EUR 3.8 million non-recurring income in Q2 2015. Profitability 0% 5% 10% 15% 20% 25% 30% Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 EBITA-margin (%) ROCE (%) R12 Interim report January–June 2015 l 6 August 2015 Key figures 4–6/15 4–6/14 Change 1–6/15 1–6/14 Change Net sales 56.8 48.7 16.6% 107.8 94.1 14.6% EBITA 12.11) 6.7 80.7% 17.21) 10.9 57.9% % of net sales 21.4%1) 13.8% 16.0%1) 11.6% Capex 18.4 35.9 −48.9% 22.3 45.8 −51.3% Capital employed 187.7 167.5 12.0% ROCE (%) 17.9% 16.7% Personnel (FTE) 776 764 1.6% Customer centres 80 74 8.1%
- 13. © 2015 Ramirent 13 Norway Q2/2015: Lower demand from building construction sector and continued price pressure Net sales (MEUR)Highlights Q2/2015 38.8 33.8 31.0 0 5 10 15 20 25 30 35 40 45 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Key figures Net sales down by 8.4% or by 4.4% at comparable exchange rates Profitability 0% 5% 10% 15% 20% 25% 30% Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 EBITA-margin (%) ROCE (%) R12 Interim report January–June 2015 l 6 August 2015 Net sales were hampered by lower demand from building construction, which was not offset by demand from infrastructure construction Profitability affected negatively by lower net sales and continued price pressure Key figures 4–6/15 4–6/14 Change 1–6/15 1–6/14 Change Net sales 31.0 33.8 −8.4% 62.0 67.8 −8.6% EBITA 2.9 4.2 −31.3% 3.9 6.8 −42.5% % of net sales 9.4% 12.5% 6.3% 10.0% Capex 4.5 4.8 −6.6% 7.0 9.7 −27.3% Capital employed 134.1 138.9 −3.5% ROCE (%) 6.7% 9.5% Personnel (FTE) 413 449 −8.2% Customer centres 43 43 −
- 14. © 2015 Ramirent 14 Denmark Q2/2015: Cost reduction measures are showing results Net sales (MEUR)Highlights Q2/2015 11.2 9.1 10.6 0 2 4 6 8 10 12 14 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Key figures Demand driven by Solutions projects mainly in the public sector and strong construction activity in the Copenhagen area Profitability supported by lower fixed cost level compared to the previous year Development of the Danish organisation and customer centre network will continue in 2015 to improve profitability Net sales increased by 17.2% Profitability -30% -25% -20% -15% -10% -5% 0% 5% Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 EBITA-margin (%) ROCE (%) R12 Interim report January–June 2015 l 6 August 2015 Key figures 4–6/15 4–6/14 Change 1–6/15 1–6/14 Change Net sales 10.6 9.1 17.2% 20.0 18.7 7.2% EBITA 0.3 −1.7 n/a −1.1 −2.9 62.0% % of net sales 2.8% −19.1% −5.4% −15.3% Capex 0.7 1.7 −60.4% 1.6 1.7 −7.7% Capital employed 26.6 25.8 3.2% ROCE (%) −9.0% −20.8% Personnel (FTE) 151 136 11.0% Customer centres 15 16 −6.3%
- 15. © 2015 Ramirent 15 Europe East Q2/2015: Continued strong profitability in the Baltics Net sales (MEUR)Highlights Q2/2015 7.6 8.2 8.5 0 2 4 6 8 10 12 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Key figures Net sales up by 4.1% Baltics: - Sales increase was driven by demand from building construction and rental related services - Strict fixed cost control was maintained by a lean and effective organisational structure Fortrent: Higher prices and contingency measures implemented in the previous year supported EBITA Profitability Interim report January–June 2015 l 6 August 2015 0% 5% 10% 15% 20% 25% 30% 35% Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 EBITA-margin (%) in the Baltics ROCE (%) R12 in the Baltics Key figures 4–6/15 4–6/14 Change 1–6/15 1–6/14 Change Net sales 8.5 8.2 4.1% 15.1 14.4 4.9% EBITA 1.7 1.0 76.7% 1.9 0.9 113.6% % of net sales 20.4% 12.1% 12.4% 6.1% Capex 9.3 4.7 96.2% 13.0 7.4 76.0% Capital employed 52.2 63.5 −17.8% ROCE (%) 13.4% 10.0% Personnel (FTE) 257 233 10.3% Customer centres 43 42 2.4%
- 16. © 2015 Ramirent 16 Europe Central Q2/2015: Increasing demand and improving profitability Net sales (MEUR)Highlights Q2/2015 14.1 13.3 13.7 0 2 4 6 8 10 12 14 16 18 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Key figures Net sales up by 2.7% or by 1.4% at comparable exchange rates Profitability -25% -20% -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 EBITA-margin (%) ROCE (%) R12 Interim report January–June 2015 l 6 August 2015 In Poland, demand was supported by increased construction activity and several power plant projects The comparative period included a large industrial project in Slovenia In Czech republic and Slovakia, demand was fuelled by road as well as warehouse and logistics projects Key figures 4–6/15 4–6/14 Change 1–6/15 1–6/14 Change Net sales 13.7 13.3 2.7% 24.7 25.2 −1.8% EBITA 0.9 0.8 9.7% 0.3 −0.4 n/a % of net sales 6.2% 5.8% 1.2% −1.7% Capex 3.2 4.0 −22.0% 5.5 5.6 −2.7% Capital employed 51.3 58.7 −12.7% ROCE (%) 4.2% 1.1% Personnel (FTE) 489 482 1.4% Customer centres 55 58 −5.2%
- 17. Group performance Segment review Market outlook Key figures Financial position Company overview Appendix 17
- 18. © 2015 Ramirent 18 Favourable market conditions in Sweden, Denmark and Europe Central countries Construction association’s estimates on construction output 2015 Nordic countries Baltics and Europe Central 2015E Finland 0.0% Sweden 5.0% Norway 2.6% Denmark 1.2% 2015E Estonia -4.0% Latvia -6.0% Lithuania 1.0% Poland 9.7% The Czech Republic 4.3% Slovakia 2.1% Source: Euroconstruct 6/2015 Ramirent’s expectation on overall demand by equipment rental market 2015 Interim report January–June 2015 l 6 August 2015
- 19. © 2015 Ramirent 0 5 10 15 20 25 30 35 40 45 50 Finland Sweden Norway Denmark Residential construction Non-residential construction Infrastructure construction 19 Several sectors growing in Nordic construction Change in construction output by sector in the Nordics 2015 vs. 2014 +10.4% billion EUR Interim report January–June 2015 l 6 August 2015 +4.7% +4.9% +3.6% +2.4% Source: Euroconstruct 6/2015 0.0% 5.0% 2.6% 1.2% Total Nordic construction market is expected to grow by 2.3% in 2015 +0.2% +0.1% -0.4% -1.1% +1.0% +0.7% +0.2%
- 20. © 2015 Ramirent 20 Second-quarter Nordic construction order books increased by 1.3% at comparable exchange rates Nordic construction companies order books (at comparable exchange rates) billion Second-quarter Nordic construction order books including Skanska, NCC, YIT and Lemminkäinen increased by 1.3% at comparable exchange rates Ramirent's rolling 12 months net sales amounted to 624.2 MEUR, up by 2.7% at comparable exchange rates-40% -20% 0% 20% 40% 60% 0 2 4 6 8 10 12 14 Q1 2007 Q2 Q3 Q4 Q1 2008 Q2 Q3 Q4 Q1 2009 Q2 Q3 Q4 Q1 2010 Q2 Q3 Q4 Q1 2011 Q2 Q3 Q4 Q1 2012 Q2 Q3 Q4 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 NCC Skanska YIT Lemminkäinen Change in Net sales (y-o-y), R12 Ramirent Change in order backlog (y-o-y), Nordic construction Interim report January–June 2015 l 6 August 2015
- 21. Ramirent expects the market picture for 2015 to remain mixed, with challenging market conditions especially in Finland and Norway. We expect full-year 2015 net sales and EBITA margin to be similar to the level of 2014 when measured in local currencies. Ramirent outlook for full year 2015 unchanged
- 22. Group performance Segment review Market outlook Key figures Financial position Company overview Appendix
- 23. © 2015 Ramirent 23 Finland Sweden Norway Denmark Baltics Central Rolling12 months netSales (MEUR) Rolling12months EBITAmarginexcl. non-recurring items (%) Q2/2014 Q2/2015 Rolling 12 months EBITA excl. non-recurring items improved in Denmark, the Baltics and Central Europe 16.7% 15.4% 11.0% -9.8% 18.8% 4.7% 12.1% 15.1% 10.2% -5.0% 22.1% 6.7% -10% -5% 0% 5% 10% 15% 20% 25% Finland Sweden Norway Denmark The Baltics Europe Central 151.1 198.0 144.5 42.3 32.6 57.3 153.6 214.7 129.9 40.7 34.6 52.7 0.0 50.0 100.0 150.0 200.0 Finland Sweden Norway Denmark The Baltics Europe Central Non-recurring items impacting R12 EBITA-margin Q2/2015: Sweden: Q2/2015 includes 3.8 MEUR non-recurring income from the settlement of earn-out in the weather shelter and scaffolding company DCC acquired in 2014 Sweden: 0.7 MEUR of restructuring costs were booked in Q4 2014 Finland: 1.5 MEUR of restructuring costs and asset write-downs were booked in Q4 2014 Norway: 2.2 MEUR of restructuring costs were booked in H2 2014 Denmark: 0.1 MEUR of restructuring costs were booked in Q4 of 2014 Europe Central: 1.1 MEUR of restructuring costs and asset write-downs were booked in Q4 2014 Interim report January–June 2015 l 6 August 2015
- 24. © 2015 Ramirent 24 Second-quarter net sales were driven by increased service income Net sales (MEUR) Breakdown of net sales (MEUR) 98.1 99.8 47.9 54.9 5.8 4.7 0 20 40 60 80 100 120 140 160 180 Q2/2014 Q2/2015 Income from sold equipment Ancillary income Rental income +1.7% +14.6% −18.0% 151.8 -2.8 10.4 159.4 0 20 40 60 80 100 120 140 160 180 Q2/2014 reported Exchange rates Underlying change Q2/2015 reported Second-quarter sales up by 5.0% or by 6.9% at comparable exchange rates Weaker Swedish and Norwegian krona impacted negatively on the net sales in euros Net sales were driven by increasing service income and advancing large solutions projects Share of ancillary income of Group sales was 34.4% (31.5%) in the second quarter Interim report January–June 2015 l 6 August 2015
- 25. © 2015 Ramirent 25 Interim report January–June 2015 l 6 August 2015 Fleet utilisation improvement driven by increased demand and reduction of non-productive fleet Group efficiency utilisation* (%) R3 months Group total fleet yield** (%) R3 months Centralising repair & maintenance locations Optimising fleet transports Internal fleet transfers Fleet management efficiency actions 1-6/2015 Reduction of non-productive and non-available fleet ∗) 𝐸𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦 𝑢𝑡𝑖𝑙𝑖𝑠𝑎𝑡𝑖𝑜𝑛 = 𝐴𝑐𝑞𝑢𝑖𝑠𝑖𝑡𝑖𝑜𝑛 𝑣𝑎𝑙𝑢𝑒 𝑜𝑓 𝑟𝑒𝑛𝑡𝑒𝑑 𝑓𝑙𝑒𝑒𝑡 𝐴𝑐𝑞𝑢𝑖𝑠𝑖𝑡𝑖𝑜𝑛 𝑣𝑎𝑙𝑢𝑒 𝑜𝑓 𝑡𝑜𝑡𝑎𝑙 𝑓𝑙𝑒𝑒𝑡 ∗ 100 % ∗∗) 𝑇𝑜𝑡𝑎𝑙 𝐹𝑙𝑒𝑒𝑡 𝑌𝑖𝑒𝑙𝑑 = 𝑅𝑒𝑛𝑡𝑎𝑙 𝑖𝑛𝑐𝑜𝑚𝑒 ∗ 100 % 𝐴𝑐𝑞𝑢𝑖𝑠𝑖𝑡𝑖𝑜𝑛 𝑣𝑎𝑙𝑢𝑒 𝑜𝑓 𝑡𝑜𝑡𝑎𝑙 𝑓𝑙𝑒𝑒𝑡
- 26. © 2015 Ramirent 26 Efforts to improve gross margin continued Second–quarter gross profit improved compared to the first quarter and amounted to 101.1 (87.6) MEUR or 63.4% (62.3%) Gross margin Q2/2015 Gross profit (MEUR) Q2/2015 87.6 101.1 0 20 40 60 80 100 120 Q1/2015 Q2/2015 Gross margin was impacted by a higher share of service sales, transportation costs, increased rental expenses due to outsourced operations and price pressure especially in Finland and Norway Interim report January–June 2015 l 6 August 2015 68.8% 66.0% 63.4% 0% 10% 20% 30% 40% 50% 60% 70% 80% Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2
- 27. © 2015 Ramirent 27 Optimisation of the customer centre network continued Customer centres Personnel (FTE) Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Finland Sweden Norway Denmark Europe East -Baltics Europe Central In Finland and Europe Central, Ramirent closed and merged customer centres in the second quarter of 2015 Outsourcing of non-core operations and contingency actions reduced personnel in Finland and Norway compared to the previous year In Sweden, the personnel increased due to acquisitions in 2014, however, mitigated by further streamlining of the organisation Finland 482 Sweden 776 Norway 413 Denmark 151 Baltics 257 Europe Central 489 Group: 2,6821) (2,651) Interim report January–June 2015 l 6 August 2015 295301 325 1) Including personnel in Ramirent Shared Service AS
- 28. © 2015 Ramirent 28 Fixed costs well under control – strong basis for operating leverage Fixed costs (MEUR) and % of Group net sales 61.5 58.6 60.0 38.3% 38.6% 37.6% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 0 10 20 30 40 50 60 70 80 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Second-quarter fixed costs 60.0 (58.6) MEUR • Employee benefit expenses 37.6 (37.5) MEUR • Other operating expenses 22.4 (21.2) MEUR Rolling 12 months fixed costs 238.4 (244.6) MEUR or 38.2% (39.3%) of net sales Rolling 12 months fixed costs excl. non- recurring costs 234.1(243.1) MEUR or 37.5% (39.0%) of net sales Interim report January–June 2015 l 6 August 2015
- 29. © 2015 Ramirent 29 Group's reported rolling 12 months EBITA margin at 10.8% 11.3% 10.8% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% Q2/2014 (R12) Q2/2015 (R12) Reported rolling 12 months EBITA 67.7 (70.1) MEUR or 10.8% (11.3%) of net sales Reported second-quarter EBITA margin improved to 13.2% (10.7%) of net sales EBITA margin (rolling 12 months) EBITA margin (quarterly and R12) Interim report January–June 2015 l 6 August 2015 11.0% 14.6% 14.1% 10.7% 13.2% 8.8% 14.1% 15.4% 11.3% 10.8% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% Q1 2011 Q2 Q3 Q4 Q1 2012 Q2 Q3 Q4 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 EBITA-margin (%) EBITA-margin (%) (R12)
- 30. © 2015 Ramirent 30 Rolling 12 months EBITA excluding non-recurring items was 69.5 MEUR or 11.1 % of net sales EBITA (MEUR) Q2/2015 rolling 12 months basis 1) Non-recurring items: -the loss from disposal Hungary 1.9 MEUR -1.5 MEUR restructuring costs in Denmark 2) Restructuring and asset write-downs by segment: Norway 2.2 MEUR Finland 1.5 MEUR Central 1.1 MEUR Sweden 0.7 MEUR Denmark 0.1 MEUR 2) Including a EUR 3.8 million non-recurring income due to the settlement of earn-out from weather shelter and scaffolding company DCC acquired in 2014 Q2/2015 EBITA (R12) excl. non-recurring items was 69.5 (73.5) MEUR or 11.1% (11.8%) of net sales 11.3% 11.8% 10.8% EBITA margin11.1% 70.1 67.7 3.41) 73.5 1.82) 69.5 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 Q2/2014 (R12) reported non-recurring items Q2/2014 (R12) excl. non- recurring items Q2/2015 (R12) reported non-recurring items Q2/2015 (R12) excl. non- recurring items Interim report January–June 2015 l 6 August 2015
- 31. © 2015 Ramirent 31 Ramirent is continuing to focus on improving the profitability level through the efficiency programme Rolling 12 months EBITA margin excl. non-recurring items by segment (%) 12.1 15.1 10.2 -5.0 22.1 6.7 11.1 -5 0 5 10 15 20 Finland Sweden Norway Denmark Baltics Europe Central Group 18% 10% Target = 17% Interim report January–June 2015 l 6 August 2015
- 32. © 2015 Ramirent 32 Selective fleet investments to strengthen our offering Gross capital expenditure (MEUR) and % of net sales 30.0 78.3 46.8 18.7% 51.6% 29.4% 0% 10% 20% 30% 40% 50% 60% 0 10 20 30 40 50 60 70 80 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Gross Capex Share of net sales-% Second-quarter gross capex 46.8 (78.3) MEUR of which 0.0 (46.0) MEUR related to acquisitions Second-quarter investments in machinery and equipment 44.5 (50.1) MEUR First-half gross capex decreased to 65.0 (101.8) MEUR of which 0.0 (46.0) related to acquisitions First-half investments in machinery and equipment 60.4 (72.1) MEUR Interim report January–June 2015 l 6 August 2015
- 33. © 2015 Ramirent 33 Capital expenditures focused on Sweden Capital expenditure by segment (MEUR) Investments in the fleet 26.5 45.8 9.7 1.7 7.4 5.6 14.0 22.3 7.0 1.6 13.0 5.5 0 10 20 30 40 50 Finland Sweden Norway Denmark East Central H1/2015 H1/2014 Committed investments on rental machinery amounted to 25.2 (17.0) MEUR at the end of the second quarter Sales value of sold rental machinery and equipment was 4.7 (5.8) MEUR in the second quarter Capital expenditure in the comparative period includes the acquisitions of Kurko- Koponen in Finland and weather shelter company DCC as well as ownership stake in Safety Solutions Jonsereds in Sweden Interim report January–June 2015 l 6 August 2015
- 34. © 2015 Ramirent 34 Cash flow after investments decreased slightly compared to the previous year Cash flow after investments (MEUR) Cash conversion (MEUR and %) -5.2 -19.4 -22.3 -30 -20 -10 0 10 20 30 40 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 The Group’s cash flow after investments -22.3 (-19.4) MEUR in the second quarter Second-quarter cash flow was affected by earn-out payments connected to the acquisition of the weather shelter and scaffolding company DCC The Group's first-half cash flow from operations 47.4 (51.1) MEUR First-half cash flow after investments improved to -21.4 (-24.5) MEUR -100% -80% -60% -40% -20% 0% 20% 40% 60% 80% 100% -80 -60 -40 -20 20 40 60 80 EBITDA (MEUR) Cashflow after investments (MEUR) Cash Conversion Interim report January–June 2015 l 6 August 2015
- 35. © 2015 Ramirent 35 Rolling 12 months return on investment improved to 12.3% Return on investment % (rolling 12 months) ROI % and Invested capital MEUR 11.9% 12.3% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% Q2/2014 Q2/2015 602 611 611 602 19.0% 19.2% 11.9% 12.3% 0% 5% 10% 15% 20% 25% 0 100 200 300 400 500 600 700 Q1 2012 Q2 Q3 Q4 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Rolling 12 months ROI at the end of June 2015 was 12.3% (11.9%) Return on investment improved due to a higher share of service sales, improved margins and reduction of non-productive fleet The Group's invested capital decreased to 602.4 (610.5) MEUR in the second quarter Interim report January–June 2015 l 6 August 2015
- 36. © 2015 Ramirent 36 ROCE improved in all segments except Finland and Norway where challenging market conditions continue 12.9% 17.9% 6.7% -9.0% 13.4% 4.2% -25% -20% -15% -10% -5% 0% 5% 10% 15% 20% 25% Finland Sweden Norway Denmark East Central Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 In Sweden, ROCE was positively impacted by a higher service sales and improved margins In Europe East, ROCE strengthened mainly as a result of improved margins in the Baltics In Europe Central, improved margins and reduction of non-productive fleet contributed positively to the ROCE How we are improving ROCE %? Pricing Growing service business Strict cost control Focus on fleet utilisation Working capital management Return on capital employed % (rolling 12 months) Interim report January–June 2015 l 6 August 2015
- 37. © 2015 Ramirent 37 Return on equity at 11.5% Return on equity % (rolling 12 months) ROE % and Total equity (MEUR) 12.1%* 11.5% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% Q2/2014 Q2/2015 319 344 325 30419.0% 19.3% 12.1% 11.5% -5% 0% 5% 10% 15% 20% 25% 0 50 100 150 200 250 300 350 400 Q1 2012 Q2 Q3 Q4 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 Q2 Rolling 12 months ROE was 11.5% (12.1%*) at the end of June 2015 Financial target: ROE of 18% over a business cycle The Group's total equity amounted to MEUR 303.6 (324.7) at the end of June 2015 Equity per share was 2.81 (3.00) at the of end of the second quarter 2015 Target 18% Interim report January–June 2015 l 6 August 2015 *Tax rate in the period July 2013 to June 2014 was artificially low due to changes in tax rates in the end of 2013
- 38. 38 Group performance Segment review Market outlook Key figures Financial position Company overview Appendix
- 39. © 2015 Ramirent 39 Strong balance sheet with Net debt to EBITDA ratio of 1.8x at the end of the second quarter Net debt (MEUR) Net debt to EBITDA ratio 264.2 273.4 297.1 0 50 100 150 200 250 300 350 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 1.4x 1.2x 1.6x 1.8x 0.0 0.5 1.0 1.5 2.0 2.5 Q1 2012 Q2 Q3 Q4 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Net debt increased compared to the previous year amounting to 297.1 (273.4) MEUR Second-quarter net debt was impacted by 43.1 MEUR in dividend payment in April Net debt to EBITDA 1.8x (1.6x) at the end of June 2015 Ramirent holds one of the strongest balance sheets in the equipment rental industry Interim report January–June 2015 l 6 August 2015 Target: Below 1.6x at the end of each fiscal year
- 40. © 2015 Ramirent 40 Gearing was above previous year's level due to increased net debt Equity ratio (%) Gearing (%) 43.1% 40.3% 39.0% 0% 10% 20% 30% 40% 50% 60% Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 76.8% 84.2% 97.9% 0% 20% 40% 60% 80% 100% 120% Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Second-quarter equity ratio decreased to 39.0% (40.3%) Total equity amounted to 303.6 (324.7) MEUR at the end the second quarter Due to increased net debt gearing was higher than in the previous year at 97.9% (84.2%) Net debt 297.1 (273.4) MEUR at the end of June 2015 Interim report January–June 2015 l 6 August 2015
- 41. © 2015 Ramirent 41 Working capital at 7.1% at the end of the second quarter Working capital (MEUR) Working capital / Rolling 12 months net sales 7.2% 5.4% 6.4% 4.6% 7.1% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% Q1 2011 Q2 Q3 Q4 Q1 2012 Q2 Q3 Q4 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Second-quarter credit losses and change in the allowance for bad debt amounted to -1.2 (0.0) MEUR Second-quarter inventories increased to 18.4 (13.2) MEUR Working capital of rolling 12 months net sales was 7.1% (4.6%) at the end of the second quarter Dividend of 43.1 (39.9) MEUR was paid in April 2015 15.0 13.2 18.4 128.7 115.6 118.7 -98.2 -100.0 -92.9 -200 -150 -100 -50 0 50 100 150 200 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Trade payables and other liabilities Trade and other receivables Inventories Interim report January–June 2015 l 6 August 2015
- 42. © 2015 Ramirent 42 At the end of June 2015, Ramirent had unused committed back–up loan facilities of EUR 118.1 million Repayment schedule of interest-bearing liabilities (MEUR) Ramirent had unused committed back-up loan facilities of 118.1 (140.6) MEUR available at the end of the second quarter The average interest rate of the loan portfolio including interest rate hedges was 2.4% (2.9%) at the end of the second quarter In addition to bank facilities, Ramirent is utilising a domestic commercial paper program of up to 150 MEUR Net debt EUR 297.1 million EUR 415.0 million in committed credit facilities Senior unsecured bond Interim report January–June 2015 l 6 August 2015 75 95 100 145 2015 2016 2017 2018 2019 2020
- 43. © 2015 Ramirent 43 The AGM authorised the Board to decide at its discretion to distribute an additional dividend of max. EUR 0.60 per share Earnings Per Share and Dividend Per Share 0.13 0.41 0.59 0.50 0.30 0.25 0.28 0.34 0.37 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00 2010 2011 2012 2013 2014 EPS DPS An ordinary dividend of EUR 0.40 (0.37) per share was paid on 10 April 2015 The AGM 2015 authorised the Board to decide at its discretion on the payment of an additional dividend up to the amount of EUR 0.60 per share The authorisation is valid until the Annual General Meeting 2016 At times when cash generation is above the level likely to be required to support growth, the Board will consider paying higher than ordinary dividends 1.00 0.40 0.60 Interim report January–June 2015 l 6 August 2015
- 44. © 2015 Ramirent 44 Ramirent’s long-term financial targets Leverage and risk Profit generation Dividend Element Target level ROE Net Debt / EBITDA ratio Dividend pay-out ratio 18% p.a. over a business cycle Below 1.6x at the end of each fiscal year At least 40% of Net profit Measure 1-6/2015 11.5% 1.8x 132% of 2014 net profit STATED OBJECTIVES Interim report January–June 2015 l 6 August 2015
- 45. For further information: Magnus Rosén, President and CEO, tel. +358 20 750 2845 Jonas Söderkvist, CFO, tel. +358 20 750 3248 Franciska Janzon, IR, tel. +358 20 750 2859 www.ramirent.com
- 46. 46 Group performance Segment review Market outlook Key figures Financial position Company overview Appendix
- 47. © 2015 Ramirent Ramirent is a generalist equipment rental and service company 47 Where Geographic presence Home market Europe with focus on the Baltic Rim How Concept Ramirent is a generalist rental company, with an extensive customer centre network enabling customer proximity while managing through decentralised operations What Offering Ramirent’s business offering stretches from single products to managing the entire fleet capacity at a customer site Who Customers Ramirent’s diverse customer base includes construction, industry, services, the public sector and private households 295 customer centres in 10 countries 2,682 employees serving 200,000 customers with 200,000 rental items MEUR 614 of sales (full-year 2014) Definition of Ramirent's business and strategic choices Interim report January–June 2015 l 6 August 2015
- 48. © 2015 Ramirent 48 Vision To be the leading and most progressive equipment rental solutions company in Europe, setting the benchmark for industry performance and customer service Values Open Engaged Progressive Mission We simplify business by delivering Dynamic Rental SolutionsTM Brand promise More than Machines Our strategic choices Interim report January–June 2015 l 6 August 2015
- 49. © 2015 Ramirent 49 Strong market position in core Baltic Rim markets Europe Central (PL+CZ+SL) # 1 55 customer centres Finland # 1 59 customer centres Sweden # 2 80 customer centres Norway # 1 43 customer centres Denmark # 3 15 customer centres Europe East –Baltics # 2 43 customer centres Finland 24% Sweden 36% Norway 21% Denmark 7% Europe East - Baltics 5% Europe Central 8% Sales per customers 1-6/2015 Construction 60% Industrial 18% Services & Retail 15 % Public 4% Other 2% Private 2% Group sales generated from non-construction sectors on a par with the target of 40% Russia and Ukraine presence through JV Fortrent Sales per segment 1-6/2015 Fehmarnbelt Solutions Services A/S, JV with Zeppelin Rental Interim report January–June 2015 l 6 August 2015
- 50. © 2015 Ramirent 50 614 0 200 400 600 800 1000 Loxam Cramo Algeco Scotsman (EMEA) Ramirent Kiloutou Speedy Hire Select Plant Hire HSS Hire Zeppelin Rental Sarens (Europe) Net sales 2014 (MEUR) Net sales 2014 (MEUR) Top 10 rental companies in Europe Top 15 rental companies globally One of the leading equipment rental companies both in Europe (#4) and globally (#14) 614 0 1000 2000 3000 4000 5000 United Rentals Ashtead Group Algeco Scotsman Aktio Corp Herz Equipment Rental Kanamoto Coates Hire Loxam Nishio Rent Nikken Corp Cramo Sarens Ramirent Kiloutou Interim report January–June 2015 l 6 August 2015
- 51. 51 Our offering MODULE AND SITE EQUIPMENT HEAVY MACHINERYACCESS EQUIPMENT PLANNING LIGHT EQUIPMENT LOGISTICS ON-SITE SERVICES RENTAL INSURANCE TRAINING ACCESSORIES Ramirent SpaceSolveTM Ramirent SafeSolveTM Ramirent EcoSolveTM Ramirent PowerSolveTM Ramirent ClimateSolveTM Ramirent AccessSolveTM Ramirent TotalSolveTM MACHINERY AND EQUIPMENT SERVICES SOLUTION AREAS Interim report January–June 2015 l 6 August 2015
- 52. © 2015 Ramirent 52 Equipment Services Rental Business and Sector Knowledge Benefits Lighter balance sheets, less investments Benefits More uptime in core operations due to less downtime in equipment, less maintenance costs, right choice of equipment improves efficiency, less product liability risk Benefits Understanding customer requirements helps to customise product selection and further improve productivity Heavy Equipment Access Equipment Lifts, Hoists, Scaffolding, Tower cranes Modules and site equipment Light Equipment Tools, power and heating equipment • Planning • On-site services • Logistics • Accessories • Rental insurance • Training • Construction • Mining • Paper • Power generation • Oil & Gas • Shipyards • Retail & Service • Public sector • Households Integrated Solutions Benefits Easy to buy, reduced number of subcontractors, increased focus on the core business Ramirent combines the best equipment, services and knowhow into integrated rental solutions 9% 32% 21% 37% Share of Group rental income (1-6/2015) Interim report January–June 2015 l 6 August 2015
- 53. © 2014 Ramirent 53 Through a diversified business portfolio One company Sustainable profitable growth Agility in managing business We are committed to our long-term strategic objectives to achieve sustainable profitable growth Customer first through NextRamirent Realised synergies of scale and scope while maintaining local accountability More Proactive More Competent More Conscious More Safe & Green More Efficient Leading and most profitable general rental company in markets where present, growing in selected growth pockets Geographies Customers Competences Products improvement agenda Interim report January–June 2015 l 6 August 2015
- 54. © 2015 Ramirent 54 Increased market share Growth within current business Extended customer value proposition Increasing services and integrated solutions Increased penetration Outsourcing opportunities Increased footprint New customer segments New geographies M&A Acquisitions, joint ventures and other transactions 1 2 3 4 5 The five components of Ramirent's growth strategy Interim report January–June 2015 l 6 August 2015
- 55. © 2015 Ramirent 55 Room for rental penetration to further increase in the Nordic countries Equipment rental penetration 2014E (%) 3.5% 2.0% 1.5% 1.7% Rental penetration (%)* Sweden Norway Finland Denmark Source: European Rental Association 11/2014; Rental Turnover / Total construction output HIGHMEDIUMLOW Average penetration in Europe: 1.5% Interim report January–June 2015 l 6 August 2015
- 56. © 2015 Ramirent 56 Ramirent has a proven track record in outsourcing deals and M&A transactions 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 M&A critera Complimentary product ranges or related services Extending geography to "white spots" Strengthening links to new customer segments" Outsourcing of customer's in-house fleets Targets mid-size companies mainly Bautas AS (outsourcing) Altima AB (outsourcing) Basis for Norwegian business Basis for Swedish and Danish business Acquisitions in Sweden, Poland and Hungary Expansion to the Czech Republic, bolt-on acquisitions in Finland and Sweden Acquisitions in the Nordic countries Entry into Slovakia Acquisitions and outsourcings mainly in the Nordic countries Nine acquisitions and three outsourcings Entry into oil & gas industry in Norway (Rogaland Planbygg) Divestments of formwork business in Finland and the Hungarian operations DCC (outsourcing) (tower cranes) Fortrent JV with Cramo in Russia & Ukraine Interim report January–June 2015 l 6 August 2015
- 57. © 2015 Ramirent 57 Ramirent's Financial Business Model: Three complimentary drivers of value creation • Volumes • Upselling • Pricing • Fleet management • Sourcing • Cost structure • Quality of earnings • Cash conversion • Capex • Working capital • Dividend • Capital Structure Organic Growth Operating Leverage Financial Leverage Cash Flow Target EBITA margin of 17% Net debt/ EBITDA target of below 1.6x (at y/e) Capital Expenditure ROE target of 18% over the cycle Dividend pay-out ratio: at least 40% of net profit Interim report January–June 2015 l 6 August 2015
- 58. © 2015 Ramirent 58 Market Cap EUR 705.7 million Trading information Listing: NASDAX Helsinki Date of listing: April 30, 1998 Segment: Mid Cap Sector: Industrials Trading code: RMR1V 16% 8% 12% 2% 31% 32% Private companies Public sector organizations Households Non-profit organizations Foreigners Finance and insurance companies Shareholders June 30, 2015 Largest shareholders June 30, 2015 Number of shares % of share capital 1. Nordstjernan AB 30,393,716 27.96% 2. Oy Julius Tallberg Ab 12,207,229 11.23% 3. Nordea funds 5,056,420 4.65% 4. Ilmarinen Mutual Pension Insurance Company 3,945,154 3.63% 5. Varma Mutual Pension Insurance Company 3,640,865 3.35% 6. Aktia funds 2,290,658 2.11% 7. Ramirent Plc 970,649 0.88% 8. Oslo Pensjonsforsikring As 800,000 0.74% 9. Föreningen Konstamsamfundet 593,500 0.55% 10. Valtion eläkerahasto 532,000 0.49% Other shareholders 48,277,137 44.41% Total 108,697,328 100.00% Largest shareholders at the end of June 2015 Interim report January–June 2015 l 6 August 2015
- 59. © 2015 Ramirent Attractive market - structural growth drivers and cyclical recovery potential Number 1 position - market leader in 7/10 countries Strong platform - above industry average profitability, balanced risk level and increasing operational excellence Growth potential - 5 point growth strategy to capitalise on strong position Financial strength – industry leading cash generation and leverage potential to finance growth, drive ROE and increase dividends Proven management track record – experienced management has reshaped the company since 2008 59 Return on equity of 18% over a business cycle YE net debt to EBITDA of below 1.6x Dividend pay-out ratio of at least 40% of net profit EBITA margin of 17% How will we deliver on our financial targets and create shareholder value? Company highlights Stated objectives Interim report January–June 2015 l 6 August 2015
- 60. 60 Group performance Segment review Market outlook Key figures Financial position Company overview Appendix
- 61. © 2015 Ramirent 61 Interim report January–June 2015 l 6 August 2015 Consolidated statement of income CONSOLIDATED STATEMENT OF INCOME 4–6/15 4–6/14 1–6/15 1–6/14 1–12/14 (EUR 1,000) Rental income 99,834 98,146 187,439 184,870 395,341 Ancillary income 54,881 47,886 102,638 93,178 193,481 Sales of equipment 4,719 5,755 9,933 11,276 24,714 NET SALES 159,435 151,786 300,010 289,324 613,536 Other operating income 4,765 804 5,433 1,153 2,290 Materials and services −58,334 −51,563 −111,273 −96,420 −209,162 Employee benefit expenses −37,608 −37,468 −75,380 −74,597 −150,305 Other operating expenses −22,357 −21,178 −44,238 −44,971 −88,003 Share of result in associates and joint ventures 108 −152 58 −582 −486 Depreciation, amortisation and impairment charges −27,253 −28,009 −53,893 −54,312 −109,728 EBIT 18,755 14,219 20,718 19,595 58,143 Financial income 3,005 2,076 8,026 4,171 11,292 Financial expenses −5,108 −7,148 −12,307 −11,399 −26,974 Total financial income and expenses −2,103 −5,072 −4,280 −7,229 −15,683 EBT 16,652 9,147 16,437 12,367 42,460 Income taxes −3,410 −2,145 −3,361 −2,805 −10,370 RESULT FOR THE PERIOD 13,243 7,002 13,077 9,562 32,090 Result for the period attributable to: Shareholders of the parent company 13,166 7,147 13,139 9,707 32,632 Non-controlling interest 77 −145 −62 −145 −542 TOTAL 13,243 7,002 13,077 9,562 32,090 Earnings per share (EPS) on parent company shareholders’ share of result Basic, EUR 0.12 0.07 0.12 0.09 0.30 Diluted, EUR 0.12 0.07 0.12 0.09 0.30
- 62. © 2015 Ramirent 62 Consolidated statement of financial position Interim report January–June 2015 l 6 August 2015 CONSOLIDATED STATEMENT OF FINANCIAL POSITION 30/6/2015 30/6/2014 31/12/2014 (EUR 1,000) ASSETS NON–CURRENT ASSETS Goodwill 141,952 140,529 139,780 Other intangible assets 45,495 45,745 46,720 Property, plant and equipment 420,476 438,805 406,001 Investments in associates and joint ventures 8,877 16,314 5,278 Non–current loan receivables 16,416 19,261 17,666 Available–for–sale investments 142 147 139 Deferred tax assets 619 677 605 TOTAL NON–CURRENT ASSETS 633,977 661,477 616,189 CURRENT ASSETS Inventories 18,400 13,247 12,431 Trade and other receivables 118,732 115,576 109,370 Current tax assets 6,588 3,026 2,775 Cash and cash equivalents 1,728 12,356 3,129 TOTAL CURRENT ASSETS 145,449 144,205 127,705 TOTAL ASSETS 779,426 805,682 743,894
- 63. © 2015 Ramirent 63 Interim report January–June 2015 l 6 August 2015 Consolidated statement of financial position (cont.) CONSOLIDATED STATEMENT OF FINANCIAL POSITION 30/6/2015 30/6/2014 31/12/2014 EQUITY AND LIABILITIES EQUITY Share capital 25,000 25,000 25,000 Revaluation fund −864 −1,559 −976 Invested unrestricted equity fund 113,862 113,767 113,767 Retained earnings from previous years 152,109 176,707 153,876 Result for the period 13,139 9,707 32,632 Equity attributable to the parent company shareholders 303,246 323,622 324,299 Non-controlling interest 316 1,103 693 TOTAL EQUITY 303,562 324,725 324,992 NON–CURRENT LIABILITIES Deferred tax liabilities 49,910 53,928 50,798 Pension obligations 18,547 14,031 17,491 Non–current provisions 1,594 1,189 2,371 Non–current interest–bearing liabilities 187,433 203,907 206,685 Other non–current liabilities 9,355 24,355 19,890 TOTAL NON–CURRENT LIABILITIES 266,839 297,412 297,236 CURRENT LIABILITIES Trade payables and other liabilities 92,870 99,988 92,798 Current provisions 1,108 447 1,455 Current tax liabilities 3,652 1,290 3,899 Current interest–bearing liabilities 111,395 81,820 23,514 TOTAL CURRENT LIABILITIES 209,025 183,546 121,666 TOTAL LIABILITIES 475,864 480,957 418,902 TOTAL EQUITY AND LIABILITIES 779,426 805,682 743,894
- 64. © 2015 Ramirent 64 Interim report January–June 2015 l 6 August 2015 Key financial figures KEY FINANCIAL FIGURES 4–6/15 4–6/14 1–6/15 1–6/14 1–12/14 (MEUR) Net sales, EUR million 159.4 151.8 300.0 289.3 613.5 Change in net sales, % 5.0% −5.6% 3.7% −7.7% −5.2% EBITDA, EUR million 46.0 42.2 74.6 73.9 167.9 % of net sales 28.9% 27.8% 24.9% 25.5% 27.4% EBITA, EUR million 21.0 16.2 25.2 23.3 65.8 % net sales 13.2% 10.7% 8.4% 8.0% 10.7% EBIT, EUR million 18.8 14.2 20.7 19.6 58.1 % of net sales 11.8% 9.4% 6.9% 6.8% 9.5% EBT, EUR million 16.7 9.1 16.4 12.4 42.5 % of net sales 10.4% 6.0% 5.5% 4.3% 6.9% Result for the period attributable to the owners of the parent company, EUR million 13.2 7.1 13.1 9.7 32.6 % of net sales 8.3% 4.7% 4.4% 3.4% 5.3% Gross capital expenditure, EUR million 46.8 78.3 65.0 101.8 144.6 % of net sales 29.4% 51.6% 21.7% 35.2% 23.6% Invested capital, EUR million, end of period 602.4 610.5 555.2 Return on invested capital (ROI), %1) 12.3% 11.9% 12.2% Return on equity (ROE), %1) 11.5% 12.1% 9.4% Interest–bearing debt, EUR million 298.8 285.7 230.2 Net debt, EUR million 297.1 273.4 227.1 Net debt to EBITDA ratio1) 1.8x 1.6x 1.4x Gearing, % 97.9% 84.2% 69.9% Equity ratio, % 39.0% 40.3% 43.7% Personnel, average during reporting period 2,620 2,553 2,566 Personnel, at end of reporting period 2,682 2,651 2,576 1) The figures are calculated on a rolling twelve month basis
- 65. © 2015 Ramirent 65 Interim report January–June 2015 l 6 August 2015 Consolidated cash flow statement CONSOLIDATED CASH FLOW STATEMENT 4–6/15 4–6/14 1–6/15 1–6/14 1–12/14 (EUR 1,000) CASH FLOW FROM OPERATING ACTIVITIES EBT 16,652 9,147 16,437 12,367 42,460 Adjustments Depreciation, amortisation and impairment charges 27,253 28,009 53,893 54,312 109,728 Adjustment for proceeds from sale of used rental equipment 1,613 8,258 3,730 10,870 17,136 Financial income and expenses 2,103 5,072 4,280 7,229 15,683 Other adjustments −6,150 −3,071 −6,042 1,018 −6,140 Cash flow from operating activities before change in working capital 41,470 47,415 72,298 85,796 178,867 Change in working capital Change in trade and other receivables −11,536 −4,044 −12,485 −2,015 −2,150 Change in inventories 1,250 −893 −5,900 −1,537 −1,472 Change in non–interest–bearing liabilities 4,879 6,892 9,470 −17,299 −12,302 Cash flow from operating activities before interest and taxes 36,064 49,370 63,384 64,944 162,942 Interest paid −2,855 −7,688 −6,597 −7,845 −10,418 Interest received 291 703 354 703 620 Income tax paid −4,379 −2,601 −9,719 −6,660 −12,646 NET CASH FLOW FROM OPERATING ACTIVITIES 29,120 39,784 47,423 51,141 140,499
- 66. © 2015 Ramirent 66 Interim report January–June 2015 l 6 August 2015 Consolidated cash flow statement (continued) CONSOLIDATED CASH FLOW STATEMENT 4–6/15 4–6/14 1–6/15 1–6/14 1–12/14 (EUR 1,000) CASH FLOW FROM INVESTING ACTIVITIES Acquisition of businesses and subsidiaries, net of cash −6,200 −27,272 −6,200 −27,272 −29,872 Investments in associates and joint ventures − − −736 − − Investment in tangible non–current asset (rental equipment) −44,452 −32,109 −60,243 −52,767 −88,902 Investment in other tangible non–current assets −582 −493 −1,011 −578 −504 Investment in intangible non–current assets −1,760 −2,138 −2,798 −3,459 −9,680 Proceeds from sale of tangible and intangible non–current assets (excluding used rental equipment) 77 1,850 186 7,482 7,713 Proceeds from sales of other investments 750 − 750 − − Loan receivables, increase, decrease and other changes 755 1,000 1,250 1,000 2,594 NET CASH FLOW FROM INVESTING ACTIVITIES −51,411 −59,163 −68,802 −75,594 −118,651 CASH FLOW FROM FINANCING ACTIVITIES Dividends paid −43,095 -39,858 −43,095 −39,858 −39,858 Changes in ownership interests in subsidiaries -5,475 − −5,475 − − Borrowings and repayments of current debt (net) 70,177 74,053 87,880 80,063 22,686 Borrowings of non–current debt - - - - 2,651 Repayments of non–current debt −654 −5,245 −19,332 −5,245 −6,047 NET CASH FLOW FROM FINANCING ACTIVITIES 20,953 28,950 19,978 34,960 −20,567 NET CHANGE IN CASH AND CASH EQUIVALENTS DURING THE FINANCIAL YEAR −1,338 9,572 −1,401 10,507 1,281 Cash at the beginning of the period 3,066 2,784 3,129 1,849 1,849 Translation differences − − − − − Change in cash −1,338 9,572 −1,401 10,507 1,281 Cash at the end of the period 1,728 12,356 1,728 12,356 3,129
- 67. © 2015 Ramirent 67 Interim report January–June 2015 l 6 August 2015 Net sales NET SALES 4–6/15 4–6/14 1–6/15 1–6/14 1–12/14 (MEUR) FINLAND - Net sales (external) 39.3 38.7 71.3 70.2 151.9 - Inter–segment sales 0.1 0.3 0.1 0.5 0.9 SWEDEN - Net sales (external) 56.4 48.5 107.2 93.8 200.4 - Inter–segment sales 0.3 0.2 0.6 0.2 0.7 NORWAY - Net sales (external) 30.9 33.9 61.8 67.3 135.1 - Inter–segment sales 0.1 −0.1 0.2 0.5 0.6 DENMARK - Net sales (external) 10.6 9.1 20.0 18.7 39.4 - Inter–segment sales 0.0 − 0.0 − − EUROPE EAST - Net sales (external) 8.5 8.2 15.1 14.4 33.8 - Inter–segment sales 0.0 0.0 0.0 0.0 0.1 EUROPE CENTRAL - Net sales (external) 13.7 13.3 24.7 24.9 52.9 - Inter–segment sales 0.0 0.0 0.0 0.3 0.3 Elimination of sales between segments −0.6 −0.4 −1.0 −1.5 −2.4 GROUP NET SALES 159.4 151.8 300.0 289.3 613.5
- 68. © 2015 Ramirent 68 Interim report January–June 2015 l 6 August 2015 EBITA EBITA 4–6/15 4–6/14 1–6/15 1–6/14 1–12/14 (MEUR and % of net sales) FINLAND 4.5 6.0 5.3 8.9 20.8 % of net sales 11.3% 15.4% 7.4% 12.7% 13.6% SWEDEN 12.1 6.7 17.2 10.9 29.4 % of net sales 21.4% 13.8% 16.0% 11.6% 14.6% NORWAY 2.9 4.2 3.9 6.8 14.0 % of net sales 9.4% 12.5% 6.3% 10.0% 10.3% DENMARK 0.3 −1.7 −1.1 −2.9 −3.9 % of net sales 2.8% −19.1% −5.4% −15.3% −10.0% EUROPE EAST 1.7 1.0 1.9 0.9 6.7 % of net sales 20.4% 12.1% 12.4% 6.1% 19.6% EUROPE CENTRAL 0.9 0.8 0.3 −0.4 1.7 % of net sales 6.2% 5.8% 1.2% −1.7% 3.2% Net items not allocated to segments −1.4 −0.8 −2.3 −1.0 −2.8 GROUP EBITA 21.0 16.2 25.2 23.3 65.8 % of net sales 13.2% 10.7% 8.4% 8.0% 10.7%
- 69. © 2015 Ramirent 69 Non-recurring items impacting EBITA by segment Non-recurring items impacting EBITA 1–6/15 1–6/14 1–12/14 (MEUR) FINLAND − − −1.52) SWEDEN 3.81) − −0.73) NORWAY − − −2.24) DENMARK − − −0.15) EUROPE EAST − − − EUROPE CENTRAL − − −1.16) Unallocated items and eliminations − − − TOTAL 3.8 − −5.7 1) The settlement of earn-out on DCC, the weather shelter and scaffolding division acquired in 2014, resulted in EUR 3.8 million of non- recurring income in the second quarter of 2015 2) EUR 1.5 million of restructuring costs and asset write-downs were booked in the fourth quarter of 2014 3) EUR 0.7 million of restructuring costs were booked in the fourth quarter of 2014 4) EUR 2.2 million of restructuring costs were booked in the second half of the 2014 5) EUR 0.1 million of restructuring costs were booked in the fourth quarter of 2014 6) EUR 1.1 million of restructuring costs and asset write-downs were booked in the fourth quarter of 2014 Interim report January–June 2015 l 6 August 2015
- 70. For further information: Magnus Rosén, President and CEO, tel. +358 20 750 2845 Jonas Söderkvist, CFO, tel. +358 20 750 3248 Franciska Janzon, IR, tel. +358 20 750 2859 www.ramirent.com