New Magnus Rosén, President and CEO, Ramirent...

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Helsinki centre, Finland

Ramirent – a progressive rental solutions group

SEB Enskilda Nordic Seminar, 9 January 2013, Copenhagen Magnus Rosén, President and CEO, Ramirent Plc

Contents

Company in brief Strategic priorities Q3 highlights Sector overview and outlook Financial targets Summary

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Ramirent in brief

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Leading equipment rental company in Northern, Central and Eastern Europe with net sales of EUR 650 million (2011)

375 rental customer centers located in 13 countries and providing 200 000 rental items

Listed on NASDAQ OMX Helsinki since 1998

3 027 employees serving 100 000 customers

Founded in 1955 and headquartered in Finland

IN BRIEF

SEB Enskilda Nordic Seminar 2013 l 9 January 2013 l Magnus Rosén

More than 50 years of experience as a supplier to the construction industry

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Steel nail shop Rakennusmies founded

Equipment rental business established

Acquired by the Partek group and renamed A-rakennusmies

JV in Moscow, Russia

Enter Estonia

MBO by key personnel and capital investors

Enter Latvia

Enter Lithuania

Listed on the Helsinki Stock Exchange

Enter Poland

Renamed Ramirent Plc

JV in Ukraine and greenfield entry to Hungary

Greenfield entry to Czech Republic

Enter Slovakia

1983 1955 1988 1994 1995 1996 1997 1998 2000 2001 2002 2003 2004 2006 2013 2008

Acquires Bautas in Norway

Acquires Altima in Sweden

JV in Russia and Ukraine

IN BRIEF

Ramirent operates in Europe with Baltic Sea region being the core market

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Finland 80 customer

centres

Europe

East 60 customer

centres

Norway

43 customer centres

Denmark 22 customer

centres Europe Central

90 customer centres

Sweden

84 customer centres

Finland 24 %

Sweden 29 %

Norway 23 %

Denmark 6 %

Europe East 9 %

Europe Central

9 %

Sales per segment 1-9/2012


IN BRIEF

Wide network of customer centres

Brand promise Let’s solve it

Our strategic choices

Mission We simplify business by

Delivering Dynamic Rental Solutions™

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, Progressive, Engaged

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IN BRIEF

SEB Enskilda Nordic Seminar l 9 January 2013 l Magnus Rosén


Light machinery, lifts and modules are the biggest product groups measured by rental income

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MODULES

HEAVY MACHINERY

LIGHT MACHINERY

LIFTS TOWER CRANES AND HOISTS SCAFFOLDING

POWER & HEATING SAFE

20% 7% 5% 11%

18% 4% 25% 10%

Ramirent’s equipment fleet is organised along eight core product groups

IN BRIEF

RA

MIR

ENT

OFF

ERIN

G

CUSTOMER NEEDS

PRODUCTS

• Lifts • Heavy machinery • Tower cranes and hoists • Scaffolding

• Modules • Safety and formworks • Light machinery • Power and heating

SERVICES

• Planning & design • Ramirent know-how • Transportation • Installation • Maintenance • Inspections • Insurance • Operators

• Fuel/gas refilling • Site logistics coordinator • Facility management • Paperwork for authorities • Technical support

SOLUTIONS

• Total Management • Eco solutions • Safety • Event

• Power • Access • Climate • Space

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: Easy to buy, reduced number of subcontractors, increased focus on the core business

OUTSOURCING Benefits: By outsourcing your machine fleet to Ramirent, companies can increase efficiency and simplify their business by focusing on core competences

INDUSTRIES • Construction • Mining • Paper • Power generation • Oil & gas • Shipyards • Facility management • Public sector • Households

We create high-value solutions by integrating various products and services to solve a complete customer problem

8 IN BRIEF


Our strategic priorities

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Customer first

Sustainable profit growth

Common Ramirent platform

Balanced business portfolio


STRATEGY


Target for the non−construction customer segments share of Ramirent sales is 40%

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Construction 69 %

Industrial 18%

Services and Retail

7%

Public 3%

Private 3%

Sales by customer segment 1─9/ 2012 Industry sectors with highest opportunities

Mining

Automotive

Oil refining and other fuels

Metal industry

Chemical, petrochemical

Pulp, paper, wood products

Shipyards

Energy industry

Real estate

Service companies

Retail industry

STRATEGY

R12 sales above previous peak − primary focus lies on improving profitability

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Net Sales (MEUR) AND EBIT %

389

498

634 703

503 531

650 707

0%

5%

10%

15%

20%

25%

30%

0100200300400500600700800

2005 2006 2007 2008 2009 2010 2011 Q32012R12

Net sales EBIT,%

STRATEGY


End of 2009

We accelerate our growth through acquisitions and outsourcing cases

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Outsourcing deal in Denmark

Outsourcing deal in Finland Acquisition of

Finnish weather protection rental

company

Outsourcing deal with two subsidiaries in Finland

Outsourcing deal in Finland

Some 50 companies on our watch list

Acquisition of Swedish rental company

Outsourcing deal in Norway

Acquisition of Czech rental

business

Aquisition of Czech rental

business

Acquisition of Czech rental

business

Acquisition of Swedish rental

company

Acquisition of Danish rental

business

Acquisition of specialist module rental company in

Norway

Danish scaffolding

division


company


company

2010

2011 2012

Outsourcing deal in Norway

STRATEGY

JV in Russia and Ukraine announced


Group

New strategy for our presence in Russia and Ukraine through joint venture with Cramo

A stand-alone entity with new corporate identity 50/50 ownership for Cramo and Ramirent 2012E net sales and EBITDA margin of €52 million and ~35%, respectively 400 employees Depot locations: St. Petersburg region 7, Moscow region 6, other regions Russia 3, Ukraine 6 (+ 6 shop-in-shop outlets)

Key Facts

Group

UKRAINE

RUSSIA

Combining Forces in Growing Markets… …Creates a Strong Stand-Alone Company

“50/50 JV”

Total Sales 2012E: €52m

50% 50%

Rationale is to create strong player with increased financial resources and excellent organisational capabilities to capture the growth opportunities in target markets

13 STRATEGY


Creating the Leading Rental Company in Russia and Ukraine through complementary Strengths Cramo’s unique

strengths

• Fleet and capabilities to

offer modular space to serve construction and industrial customers

• Good presence with international

construction and industrial customers • Existing platform location in Ural region

(Yekaterinburg)

Common strengths

• General rental concept • Broad equipment fleet

• Established presence in St. Petersburg and

Moscow • Strong local management

• Modern way-of-working due to the Western

background

Ramirent’s unique strengths

• Fleet and capabilities in heavy equipment to serve infrastructure construction • Large customer base • Presence in Ukraine

• Existing platform location in South region (Sochi)

• Expanded presence by utilizing sales agents

Combined company: Leading rental company in Russia and Ukraine

+ +

= 14

STRATEGY


After a heavy M&A period, focus has been on regaining a strong financial position

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Group Net debt, by quarter (MEUR) Group Capex, by quarter (MEUR)

13 22

10 18

32 45

120

46 36

24 28

Q12010

Q2 Q3 Q4 Q12011

Q2 Q3 Q4 Q12012

Q2 Q3

212 209 197

177 191

238

280 263 258

281

256

Q12010

Q2 Q3 Q4 Q12011

Q2 Q3 Q4 Q12012

Q2 Q3

STRATEGY


We are well-positioned to capture the long-term growth opportunities in the industry

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Rental penetration

Outsourcing

Integrated solutions

Market consolidation

Long-term growth in emerging markets

In the long term, rental penetration is expected to increase in Europe as construction companies and industrials recognize the advantages of renting

There is a general trend towards outsourcing non-core activities to reduce capital employed and improve flexibility

Customers are increasingly interested in giving a broader integrated responsibility in their projects to rental companies

The equipment rental industry is highly fragmented and Ramirent’s strong position enables it to take an active role in the market consolidation

In the emerging rental markets there are long-term growth potential in the construction volumes per capita compared to more mature Western Europe


STRATEGY STRATEGY

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Tryggare Byggare roadshow, Malmö, Sweden

Q3 2012 highlights

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1-9 2012: Net sales growth slows, profitability stable, positive cash flow fourth quarter in a row

Net sales MEUR 519.9 (463.1) up 12.3% or 10.6% at comparable exchange rates; Like-for-like* growth 5.7% EBITDA MEUR 153.8 (126.8) EBITDA-margin 29.6% (27.4%) EBIT MEUR 64.8 (48.6) EBIT-margin 12.5% (10.5%) Gross capex MEUR 87.2 (196.3) Cash flow after investments MEUR 37.3 (-67.9) Net debt MEUR 256.0 (279.8) Gearing 73.2% (91.7%)

Customer centres 375 (412)

*Excluding acquisitions in Sweden and Norway

Q3 HIGHLIGHTS

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4 %

-1 %

17 %

4 % 1 %

9 %

-17 % -20 %

-15 %

-10 %

-5 %

0 %

5 %

10 %

15 %

20 %

YoY Change in net sales , Q3, %

Net sales grew in Q3 in all segments except Europe Central and Finland

12 % 11 %

18 % 20 %

10 %

16 %

-15 % -20 %

-15 %

-10 %

-5 %

0 %

5 %

10 %

15 %

20 %

25 %

YoY Change in net sales, 1-9/12, %

Q3 HIGHLIGHTS


20

16 %

24 %

16 % 16 %

7 %

23 %

2 %

0 %

5 %

10 %

15 %

20 %

25 %

30 %

Q3 2011 Q3 2012

EBIT margin Q3/12 vs. Q3/11

EBIT margin improved in Q3 in Finland and Norway

EBIT margin 1-9/12 vs. 1-9/11

12 %

18 % 16 %

13 %

2 %

13 %

-4 % -5 %

0 %

5 %

10 %

15 %

20 %

1-9 2011 1-9 20121-9 2011 1-9 2012 Q3 2012 Q3 2011

Q3 HIGHLIGHTS


-54.8

-29.9

25.2

66.5

17.9 27.8 22.4 19.5

-4.0

13.4 14.4 24.2

-10.7 -20.4

-36.8

15.9 6.4 7.3

23.7

Q12008

Q2 Q3 Q4 Q12009

Q2 Q3 Q4 Q12010

Q2 Q3 Q4 Q12011

Q2 Q3 Q4 Q12012

Q2 Q3

Cash flow after investments Rolling 12 months

Q3/2012 cash flow after investments 23.7 MEUR

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Cash flow after investments (MEUR)

Q3 HIGHLIGHTS


96%

84%

70%

69%

81%

113% 106% 108%

99%

86%

74% 68% 68%

71% 64%

56% 60%

80%

92% 81% 84%

87%

73%

0%

20%

40%

60%

80%

100%

120%

0

50

100

150

200

250

300

350

400

FY04

FY05

FY06

FY07

Q12008

Q2 Q3 Q4 Q12009

Q2 Q3 Q4 Q12010

Q2 Q3 Q4 Q12011

Q2 Q3 Q4 Q12012

Q2 Q3

Net debt Gearing (%)

Net debt decreased by 24.7 MEUR in Q3 2012; gearing was at 73.2%

Equity ratio was 41.9% (38.2%) Net debt amounted to EUR 256.0 (279.8) million

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Net debt and gearing

MEUR

Q3 HIGHLIGHTS

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Fortum Jelgava Power Plant, Latvia

Sector overview and outlook

Nordic construction order books decreasing (-4%) for first time in three years

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-40%

-20%

0%

20%

40%

60%

0

2

4

6

8

10

12

14

16

18

20

Q12007

Q2 Q3 Q4 Q12008

Q2 Q3 Q4 Q12009

Q2 Q3 Q4 Q12010

Q2 Q3 Q4 Q12011

Q2 Q3 Q4 Q12012

Q2 Q3

Order book Nordics (BEUR, real exchange rates)*

Skanska NCC

Peab Veidekke

YIT Lemminkäinen

SRV Change in Net sales YoY, R12 Ramirent

Change in order backlog YoY, Nordic construction

* Order books for Swe, Fin, Nor, Den

4% decrease vs. Q3/11 in real exchange rates, 2% increase in fixed 4% decrease vs. Q2/12

OUTLOOK


Market outlook – Construction output forecasts

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Country 2012F 2013F 2014F Source*

Nordic Finland -3.4% -2.3% 0.8% Euroconstruct

Sweden -2.4% 0.2% 2.6% Euroconstruct

Norway 4.7% 5.6% 2.5% Euroconstruct

Denmark 0.5% 2.2% 4.4% Euroconstruct

Europe Central Poland 1.6% -3.4% -1.0% Euroconstruct

Czech Republic -5.4% -1.9% 0.8% Euroconstruct

Slovakia -13.3% -1.0% 2.2% Euroconstruct

Hungary -9.0% 0.9% 3.4% Euroconstruct

Europe East Russia 3.0% 0-5% 0-5% Euroconstruct

Estonia 23.0% 2.0% -3.0% Euroconstruct

Latvia 8.0% 4.0% -2.0% Euroconstruct

Lithuania 1.0% 3.0% -1.0% Euroconstruct

Ukraine n.a. - n.a. n.a. Euroconstruct

*Source: Euroconstruct December 2012

OUTLOOK


Our strategic and operational themes through the business cycles

Weak Stable Strong

Strategic themes

• Safe-guard profitability and cash flow

• Consolidate market – Outsourcing cases

• Realize synergies through operational excellence

• Consolidate market – Bolt-on acquisitions

• Profitable growth

Operational themes

• Pricing discipline • Execute contingency plans • Reduce costs and transform

fixed costs to variable • Reduce financial risk, focus

on A/R and credits • Amortise debt • Limited capex, transfer fleet

to where demand is

• Develop product, customer and market portfolio

• Expand value offering • Maintenance capex

• Drive penetration and capture growth opportunities

• Keep control of fixed cost base

• Prepare contingency plans

• Growth capex for expansion

Weak market conditions in 2009-2010

Increased demand and investments

2011-2012

Business cycle

Counter cyclical cash flow

Market conditions

26 OUTLOOK


Ramirent outlook 2012 unchanged

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In 2012, net sales are expected to increase and the result before taxes is expected to improve compared to 2011.

OUTLOOK


Long-term financial targets

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Leverage and risk

Profit generation

Dividend

Element Target level

ROE

Net Debt / EBITDA

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 EPS

Measure Q3 2012

18.6%

1.2x

68% of 2011 net profit

FINANCIAL TARGETS


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Summary of company’s strengths

Leading equipment rental company in Northern, Central and Eastern Europe More than 50 years industry experience Diversified portfolios of customers, products and markets Stable profitability and steady cash flow Flexibility to maneuver: capex and cost flexibility, strong balance sheet Strong financial position and funding

Senat's square, Helsinki, Finland

SUMMARY


New Magnus Rosén, President and CEO, Ramirent...

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