Ramirent Q1 2011
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Transcript of Ramirent Q1 2011
Interim reportJanuary-March201110 May 2011
President and CEO Magnus Rosén
CFO Jonas Söderkvist
Q1 2011: Demand improved in all segments
2
Net sales up 20.5% MEUR 134.4 (111.5)
Up 15.1 % at comparable
exchange rates
EBITDA MEUR 27.6 (17.5)
EBITDA-margin 20.6% (15.7%)
EBIT MEUR 2.7 (-5.6)
EBIT-margin 2.0% (-5.0%)
Gross capex MEUR 31.9 (12.5)
Cash flow after investments
MEUR -10.7 (-4.0)
Net debt MEUR 190.6 (211.7)
Gearing 60.2% (68.4%)
Nordic construction order book increased inQ1 2011
3
Order book Nordics (BEUR, real exchange rates)*
0
5
10
15
Q12007
Q2 Q3 Q4 Q12008
Q2 Q3 Q4 Q12009
Q2 Q3 Q4 Q12010
Q2 Q3 Q4 Q12011
Skanska NCC YIT Veidekke Lemminkäinen
BEUR
The order books grew with 33% y-o-y in Q1 2011, but the order intake of large
construction companies decreased.
* Order books for Swe, Fin, Nor, Den
Construction market outlook improved in Sweden and Finland
4
Construction outlook 2011
0
50
100
150
200
250
300
350
400
2009 2010F 2011F
Finland* Sweden**
Norway Denmark
Europe Central Europe East***
Finland*: Construction is expected to grow by 4% in 2011
Sweden**: Construction is expected to grow by 7% in 2011
Norway: Construction is expected to grow by 3% in 2011
Denmark: Construction is expected to grow by 3% in 2011
Europe Central: Construction is expected to grow by 13% in 2011 in Poland, by 5% in Hungary but decrease by 3% in Slovakia and by 3% in Czech Republic
Europe East: Construction is expected to increase by 10% in 2011 in Estonia, by 4% in Latvia, by 5% in Lithuania and by 3-7% in Russia.
323 321339
BEUR
Source: Euroconstruct as per December 2010*VTT Expert Service Oy as per May 2011,**Swedish Construction Federation 2/2011, ***Excluding Ukraine
Ramirent 2011 outlook reiterated
5
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.
Latest outsourcing deals and acquisitions
6
E. Pihl & Søn A.S. outsourced light equipment and hoist operations to Ramirent Denmark and signed a five-year rental agreement
March2011
February2011
January2011
Destia outsourced modules, light machinery and related operations to Ramirent Finland and signed a five-year rental agreement
April2011
Ramirent acquired the equipment rental business
of Czech-based StavebníDoprava a Mechanizace
Ramirent acquired the business assets
of Danish machinery rental company Jydsk
Materiel Udlejning
May2011
Ramirent acquired the rental business of the Czech machinery company RENT MB
7
Outlet
Local head office
Re-renting agents
Our network grew further
Number of outlets all
time high at 382 (353)
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
Key strategic objectives: In Q1 2011 new inroads made into new customer sectors and
Dynamic Rental SolutionsTM development continued
8
SEGMENT REVIEW
9
29
34
41
3128
36 3835
30
-5 %
0 %
5 %
10 %
15 %
20 %
0
5
10
15
20
25
30
35
40
45
Q12009
Q2 Q3 Q4 Q12010
Q2 Q3 Q4 Q12011
Net sales EBIT-%
Finland
10
MEUR
Highlights Historic financial performance
Q1 Full Year
Finland 2011 2010 Change(EUR)
Change(Local)
2010
Net sales, MEUR 30.2 28.1 7.7% 7.7% 136.9
EBIT, MEUR 1.3 -0.2 705.1% 13.7
EBIT-margin 4.4% -0.8% 10.0%
Employees 566 646 -12.4% 603
Outlets 84 82 2.4% 84
Main growth driver was residential construction
Renovation activity was lower as government subsidies decreased
Profitability is still burdened by lower activity levels in shipyards, low price levels and low utilisation in certain product groups, in particular scaffolding
Destia outsourced modules, some light machinery and related operations to Ramirent and signed a five-year rental agreement
Cooperation agreements signed within new customer sectors, the Central Union of Agricultural Producers and Forest Owners and with VR Track, Finland’s largest rail constructor
Sweden
11
Especially civil engineering, public sector demand and housing boosted growth
Geographically, growth was driven by Stockholm and the surrounding areas
Central and southern regions of the country also developed positively
Profitability improved based on higher capacity utilisation , but was still burdened by low price levels
Historic financial performance
Q1 Full Year
Sweden 2011 2010 Change(EUR)
Change(Local)
2010
Net sales, MEUR
41.3 29.4 40.5% 25.1% 145.2
EBIT, MEUR 6.1 2.6 139.0% 23.3
EBIT-margin 14.9% 8.8% 16.1%
Employees 552 540 2.2% 546
Outlets 74 67 10.4% 73
32 33 31 3229
35 36
4541
0 %
5 %
10 %
15 %
20 %
25 %
0
10
20
30
40
50
Q12009
Q2 Q3 Q4 Q12010
Q2 Q3 Q4 Q12011
Net sales EBIT-%
MEUR
Highlights
Norway
12
The growth driver was the recovery in construction activity especially in the western and northern parts of Norway
Profitability was still burdened by low price levels
New managing director started in 1 February 2011
Historic financial performance
Q1 Full Year
Norway 2011 2010 Change(EUR)
Change(Local)
2010
Net sales, MEUR 32.6 28.4 15.0% 11.0% 114.4
EBIT, MEUR 0.4 -0.4 184.9% 2.3
EBIT-margin 1.2% -1.6% 2.0%
Employees 514 537 -4.3% 503
Outlets 41 39 5.1% 42
29
2527
29 28 27 28
31 33
-4 %
-2 %
0 %
2 %
4 %
6 %
8 %
10 %
12 %
14 %
16 %
0
5
10
15
20
25
30
35
Q12009
Q2 Q3 Q4 Q12010
Q2 Q3 Q4 Q12011
Net sales EBIT-%
MEUR
Highlights
Denmark
13
Market conditions have improved slightly and the high level of price competition has decreased
Profitability was burdened by increased costs for intensified sales and marketing activities in advance of the summer season
Pihl&Søn A.S. outsourced its light equipment and hoists operations to Ramirent and signed a 5-year rental agreement. The transfer of the acquired assets took place on 1 January 2011
Ramirent acquired the business assets of the machinery rental company Jydsk Materiel Udlejning located in West Jutland. For Ramirent Denmark, the acquisition contributes with approximately EUR 1.5 million in annual sales.
Historic financial performance
Q1 Full Year
Denmark 2011 2010 Change(EUR)
Change(Local)
2010
Net sales, MEUR 8.4 8.1 3.2% 3.4% 35.6
EBIT, MEUR -1.3 -0.6 -97.5% -2.2
EBIT-margin -15.0% -7.8% -6.2%
Employees 150 145 3.4% 160
Outlets 21 21 - 20
1112
1110
89 9 10
8
-50 %
-40 %
-30 %
-20 %
-10 %
0 %
10 %
0
2
4
6
8
10
12
14
Q12009
Q2 Q3 Q4 Q12010
Q2 Q3 Q4 Q12011
Net sales EBIT-%
MEUR
Highlights
Europe East
14
Growth drivers were mainly the revival of infrastructural construction in Russia
Energy-related investment projects grew in particular in the Baltics and Ukraine
Business volumes improved also in the Baltic States, especially in Lithuania and also in Ukraine
Ukraine network expanded by one new outlet, totalling 7 outlets at the end of the quarter
Profitability was still burdened by low price levels and low business volumes due to tough winter conditions
Historic financial performance
Q1 Full Year
Europe East 2011 2010 Change(EUR)
Change(Local)
2010
Net sales, MEUR 9.4 7.5 25.4% 22.8% 42.7
EBIT, MEUR -1.7 -2.4 31.1% -3.5
EBIT-margin -17.7% -32.2% -8.3%
Employees 407 367 10.9% 392
Outlets 48 45 6.7% 48
9
12
19
11
8
10
1213
9
-40 %
-30 %
-20 %
-10 %
0 %
10 %
20 %
0
5
10
15
20
Q12009
Q2 Q3 Q4 Q12010
Q2 Q3 Q4 Q12011
Net sales EBIT-%
MEUR
Highlights
Europe Central
15
The main growth drivers were the recovery in construction and industrial activity in Poland and Hungary
Profitability was burdened by lower price levels and business volumes especially in Czech Republic and Slovakia
The Czech network was expanded with 3 new outlets, totalling 21 outlets at the end of quarter
Ramirent exercised its option to acquire the remaining 40% stake in the Slovak-based company OTS Bratislava it acquired a majority stake in 2008
Historic financial performance
Q1 Full Year
Europe Central 2011 2010 Change(EUR)
Change(Local)
2010
Net sales, MEUR 14.4 12.1 19.0% 18.5% 66.6
EBIT, MEUR -1.2 -2.6 55.4% 0.8
EBIT-margin -8.2% -21.8% 1.2%
Employees 835 797 4.8% 824
Outlets 114 99 15.2% 111
1416
1816
12
16
20 19
14
-25 %
-20 %
-15 %
-10 %
-5 %
0 %
5 %
10 %
15 %
0
5
10
15
20
25
Q12009
Q2 Q3 Q4 Q12010
Q2 Q3 Q4 Q12011
Net sales EBIT-%
MEUR
Highlights
FINANCIAL REVIEW
16
Financial performance developed positively in Q1
17
Net Sales (MEUR) EBITDA (MEUR)
Cash flow (MEUR) Net debt (MEUR) Gross Capex (MEUR)
EBIT (MEUR)
35
3
8
13
22
10
18
32
0 %
5 %
10 %
15 %
20 %
25 %
0
5
10
15
20
25
30
35
Q12009
Q2 Q3 Q4 Q12010
Q2 Q3 Q4 Q12011
Gross Capex Share of net sales-%
281255
230207 212 209
197177
191
0 %
20 %
40 %
60 %
80 %
100 %
120 %
0
50
100
150
200
250
300
Q12009
Q2 Q3 Q4 Q12010
Q2 Q3 Q4 Q12011
Net debt Gearing-%
7
1412
-4-6
7
17
11
3
-6 %
-4 %
-2 %
0 %
2 %
4 %
6 %
8 %
10 %
12 %
14 %
-10
-5
0
5
10
15
20
Q12009
Q2 Q3 Q4 Q12010
Q2 Q3 Q4 Q12011
EBIT EBIT-%
30
36 37
26
18
31
42
37
28
0 %
5 %
10 %
15 %
20 %
25 %
30 %
35 %
0
5
10
15
20
25
30
35
40
45
Q12009
Q2 Q3 Q4 Q12010
Q2 Q3 Q4 Q12011
EBITDA EBITDA-%
122 125 130 126112
129141
150
134
-40 %
-30 %
-20 %
-10 %
0 %
10 %
20 %
30 %
0
20
40
60
80
100
120
140
160
Q12009
Q2 Q3 Q4 Q12010
Q2 Q3 Q4 Q12011
Net sales Y-o-y change-%
18
28
2220
-4
13 14
24
-11-15
-10
-5
0
5
10
15
20
25
30
Q12009
Q2 Q3 Q4 Q12010
Q2 Q3 Q4 Q12011
Cash flow after investments
Recovery of construction market activity increased net sales by 20.5% in Q1 2011
18
19 % 19 %
13 %
-4 %
-25 %
-31 % -31 %
-27 %
-9 %
3 %
9 %
19 % 20 %
-40 %
-30 %
-20 %
-10 %
0 %
10 %
20 %
30 %
Q12008
Q2 Q3 Q4 Q12009
Q2 Q3 Q4 Q12010
Q2 Q3 Q4 Q12011
Change in net sales YoY, %
19
20 %
8 %
41 %
15 %
3 %
25 %
19 %
15 %
8 %
25 %
11 %
3 %
23 %
19 %
4 %
40 %
15 %
7 %
41 %
22 %
0 %
5 %
10 %
15 %
20 %
25 %
30 %
35 %
40 %
45 %
Group Finland Sweden Norway Denmark East Central
EUR Comparable exchange rates Adjusted for inter-segment sales (in EUR)
Change in Q1 net sales YoY, %
Net sales grew in all segments both in eurosand in comparable exchange rates
Group January - March 2011 Net sales increased by 20.5% (15.1% at comparable
exchange rates)
Capital turnover is continuously increasing
494
562 581 578
654
708 707
586 565 552 544515 524 508 509 496 508
0 %
20 %
40 %
60 %
80 %
100 %
120 %
140 %
160 %
0
100
200
300
400
500
600
700
800
Q12007
Q2 Q3 Q4 Q12008
Q2 Q3 Q4 Q12009
Q2 Q3 Q4 Q12010
Q2 Q3 Q4 Q12011
Invested capital Net sales/Invested capital Rolling 12 month basis
MEUR
20
Invested capital by quarter
Capital turnover amounted to 107% end of March 2011 (90% end of March 2010)
Gross margin has improved compared to previous year but is still on unsatisfactory level
21
Gross margin by quarter
Gross margin is impacted by
Price pressure
Increased equipment transportation and use of external services
71 % 71 % 71 %
68 %
70 %
71 %
70 %
68 %
65 %
69 %
65 %
67 %
68 %
66 %
67 %67 %
62 %
63 %
64 %
65 %
66 %
67 %
68 %
69 %
70 %
71 %
72 %
Q1 Q2 Q3 Q4 FY
Gross margin 2008 Gross margin 2009 Gross margin 2010 Gross margin 2011
Recovering demand puts pressure on personnel, but total workforce unchanged
At the end of March 2011, the Group’s workforce amounted to 3,045 (3,047) persons
At the end of December 2010, the Group’s workforce amounted to 3,048 (3,021) persons
22
646
540 537
145
367
797
566 552
514
150
407
835
0
100
200
300
400
500
600
700
800
900
Finland Sweden Norway Denmark Europe East Europe Central
Personnel 31/3/10 Personnel 31/3/11
Number of employees by segment
Record high number of outlets in the Group
96
84
57
74
37
411
8 215
2 48
99
11
4
0
50
100
150
200
250
300
350
400
450
Q12008
Q2 Q3 Q4 Q12009
Q2 Q3 Q4 Q12010
Q2 Q3 Q4 Q12011
Finland Sweden Norway Denmark Europe East Europe Central
359
382
23
Number of outlets per segment
Fixed cost development stable
4435 30 33 33 33 33 32
38 37
29
2222 19
23 22 23 22
24 27
0
10
20
30
40
50
60
70
80
Q3 2008
Q12009
Q2 Q3 Q4 Q12010
Q2 Q3 Q4 Q12011
Employee benefit expenses Other operating expenses
24
5752 52
57 56 56 54
73
Fixed costs by quarter
MEUR
63 63
Investments in common platform and high facility cost due to cold winter have kept
the fixed cost on relatively high level.
January-March 2011 EBIT-margin was 2.0% (-5.0%)
Q1 EBIT margin increased to 2.0%, but is still burdened by low price and utilisation levels
25
18.2 %19.6 %
18.4 %
-11.4 %
5.9 %
10.8 %9.0 %
-2.9 %-5.0 %
5.8 %
11.8 %
7.5 %
2.0 %
-15 %
-10 %
-5 %
0 %
5 %
10 %
15 %
20 %
25 %
Q12008
Q2 Q3 Q4 Q12009
Q2 Q3 Q4 Q12010
Q2 Q3 Q4 Q12011
EBIT margin by quarter
Q1 EBIT margin improved in all segments except in Denmark
-5,0 %-0,8 %
8,8 %
-1,6 %
-7,8 %
-32,2 %
-21,8 %
2,0 %
4,4 %
14,9 %
1,2 %
-15,0 %-17,7 %
-8,2 %
-40 %
-30 %
-20 %
-10 %
0 %
10 %
20 %
Group Finland Sweden Norway Denmark East Central
Q1 2010 Q1 2011
26
EBIT-margin by segments
2,0
4,42,1
6,57,5
18,9
8,9
17,4
29,6
3,75,0
6,74,7 5,0
3,7 3,34,4 3,7
0
5
10
15
20
25
30
35
Q12009
Q2 Q3 Q4 Q12010
Q2 Q3 Q4 Q12011
Purchased equipment Sold equipment
27
Q1 fleet investment level rose to EUR 29.6 million
Purchased and sold equipment by quarter
MEUR
In January-March 2011, gross capital expenditure was EUR 31.9 (12.5) million of
which EUR 29.6 (7.5) million in rental fleet
The value of sold rental equipment was EUR 3.7 (5.0) million.
Capital expenditure increased in all segments to meet the increasing demand
13
1
8
4
0 1 1
32
4
13
5 43 4
0
5
10
15
20
25
30
35
Group Finland Sweden Norway Denmark East Central
Q1 2010 Q1 2011
28
Capital Expenditure by segments
MEUR
Working capital is at 5% of net sales
16 15 15 15 15 14 14 16 16
86 88 90 80 83 90 99 97 95
-66 -68 -70 -67 -69-86 -86 -89 -82
-10 %
-8 %
-6 %
-4 %
-2 %
0 %
2 %
4 %
6 %
8 %
10 %
-120
-80
-40
0
40
80
120
Q12009
Q2 Q3 Q4 Q12010
Q2 Q3 Q4 Q12011
Inventories Trade and other receivables
Trade payables and other liabilities Working capital/Net sales Rolling 12 month basis
29
Working capital by quarter
MEUR
Cash flow after investments EUR -10.7 million due to increased fleet investments and acquisitions
30
-55
-30
25
67
1828 22 20
4--4
13 1424
-11
5682
-11
-59
-22 -26 -25-23
5
-2-12
-21
14
-70
-50
-30
-10
10
30
50
70
90
Q1 2008
Q2 Q3 Q4 Q1 2009
Q2 Q3 Q4 Q1 2010
Q2 Q3 Q4 Q1 2011
Cash flow after investments Change in net debt
Cash flow versus change in net debt
MEUR
Share repurchase amounted to EUR 3.3 million in Q1 2011
96 %
84 %
70 %
69 %
81 %
113 %106 % 108 %
99 %
86 %
74 %
68 %68 %71 %
64 %
56 %60 %
0 %
20 %
40 %
60 %
80 %
100 %
120 %
0
50
100
150
200
250
300
350
400
2004 2005 2006 2007 Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
Net debt Gearing (%)
Strong financial position with gearing at 60%
31
Net debt and gearing
MEUR
Equity ratio rose to 47.5% (46.4%)
Net debt amounted to EUR 190.6 (211.7) million
On 31 March 2011 unused committed back-up loan facilities were EUR 177.2 million
3,000 dedicated problem solvers
Emerging stronger than before Ramirent is ready to capture
the opportunities in its markets
32
Broadest range of equipment and
Dynamic Rental SolutionsTM
Wide network of outlets close to our customers
Deriving higher synergies through a uniform
”Ramirent platform” across the organisation
Strong financial position
A more unified company and brand
MORE INFORMATIONwww.ramirent.com
Magnus Rosén, CEO+358 20 750 [email protected]
Jonas Söderkvist, CFO+358 20 750 [email protected]
Franciska Janzon, IR+358 20 750 [email protected]
34
COMPANY OVERVIEW
35
Ramirent in brief
36
Leading equipment rental company in Northern, Central
and Eastern Europe with net sales of EUR 531 million
(2010)
382 rental customer centers located in 13 countries and
providing 200 000 rental items
Listed on NASDAQ OMX Helsinki since 1998
3 048 employees serving 100 000 customers
Founded in 1955 and headquartered in Finland
More than 50 years of experience as a supplier to the construction industry
37
Steel Nail shop Rakennusmiesfounded
The rental business is established
Acquired by Partekand renamed A-rakennusmies
First move outside Finland through JV in Moscow, Russia
The third county becomes Estonia with the expansion to Tallinn
MBO by key personnel and capital investors
Enter Latvia
Enter Lithuania
Listed on the Helsinki Stock Exchange
Enter Poland
Renamed Ramirent Plc
Greenfield entry to Hungary
Enter Ukraine
Greenfield entry to Czech Republic
Enter Slovakia
19831955 1988 1994 1995 1996 1997 1998 2000 2001 2002 2003 2004 2005 20082006
Acquires Bautas in Norway
Acquires Altima in Sweden
38
OUR VISION AND MISSION
VisionTo 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 through Dynamic Rental SolutionsTM
38
One of the leading equipment rental companies both in Europe (#3) and globally (#11)
0 200 400 600 800 1000
Loxam
Cramo*
Ramirent
Algeco …
Speedy Hire
Liebherr-…
GAM
Mediaco …
Harsco …
Kiloutou
*Cramo + Theisen PFSource: IRN June 2010
39
0 200 400 600 800 1000
United Rentals
Aggreko
Ashtead Group
RSC Equipment Rental
Algeco Scotsman
Hertz Equipment …
Loxam
Coates Hire Ltd
Cramo*
Nishio Rent All Co
Ramirent
Turnover 2009 (MEUR) Turnover 2009 (MEUR)
Largest rental companiesin Europe
Largest rental companies globally
Nordic countries are our largest markets and construction is our largest customer sector
40
Finland
22 %
Sweden
30 %
Norway
24 %
Denmark
6 %
Europe
East7 %
Europe
Central11 %
Sales per segment Q1 2011
Construction
76%
Industry
14 %
Public sector
5 %
Households
5 %
Sales per customer sector 2010
Leading market positionsin all our markets
41
Ukraine5 depots
Market #~4
Hungary2
16 depots Market #1
Russia1
4 depots10 re-renting
agents Market #1
Finland84 depots
(25 franchises) Market #1
Slovakia37 depots
(17 franchises) Market #1
Baltic39 depots Market #2
Norway41 depots
(4 franchises) Market #1
Denmark21 depots Market #1
1) St Petersburg + Moscow 2) Excl. Fomrworks business
Czech21 depots
(7 franchises) Market #~3
Poland2
40 depotsMarket #1
Sweden74 depots
(10 franchises) Market #2
Total3,045
Finland566
Sweden552
Norway514
Denmark150
EuropeEast407
EuropeCentral
835
Employees
1) Europe East includes Russia, The Baltic States, Ukraine.2) Europe Central includes Poland, Hungary, Czech Rep., Slovakia.
Operating through six geographical segments
42
Fleet management
Sourcing
Finance
IT
Diversified customer base
Rental Outlet Network
Finland Sweden Norway Denmark E.East1) E.Central2)
Offering is structured into eight core product groups
43
MODULES
HEAVY MACHINERY
LIGHT MACHINERY
LIFTSTOWER CRANESAND HOISTS SCAFFOLDING
POWER & HEATINGSAFE (SAFETY AND FORMWORKS EQUIPM.)
Rental Solution ConceptsRamirent offers a range of customer needs-driven & value-addingturnkey rental solution concepts, driving the problem-solvingapproach and the promise of Let’s solve it.
Broadest range of equipment and Dynamic Rental SolutionsTM
44
Equipment rental• Lifts• Modules• Heavy Machinery• Light Machinery• Tower Cranes & Hoists• Scaffolding
• Power & Heating• SAFE
Rental services• Planning, design• Ramirent know-how• Transportation• Installation• Maintenance• Inspections
• Insurance• Operators• Fuel / gas refilling• Facility management• Technical support• Site logistics coordinator• Paperwork for authorities
Impact on Simplifying Customer Business Increases
Dynamic Rental SolutionsTM
is offered to a diverse customer base
Customers
Constructioncompanies
Industry
Public sector
Households
Product groups
Lifts and hoists
Tower cranes
Heavy machinery
Modules
SAFE
Light machinery
Scaffolding
Power and heating
Outlet Network
Dynamic Rental SolutionsTM
45
The long-term growth drivers are still in place
46
High potential CEEconstruction markets
Inhabitants (million)
Construction output (BEUR)
0 %
10 %
20 %
30 %
40 %
50 %
60 %
70 %
Europe
avg.
FI DK SE UK
Increasing rental penetrationNote: Finland company estimate
Ramirent Cramo
Algeco Scotsman Speedy Hire
Liebherr-Mietpartner GAM
Mediaco Lifting Harsco Infrastructur
Kiloutou Others
European consolidationopportunities
Long-term growing industry
Growth drivers are construction, industrial activity and rental penetration
European market 20.2 BEUR (excl. operators)
Top 50 companies comprising 38% of the market
CEE construction markets on a low level compared to Nordics and Western Europe
47
• ROI >18 % p.a. over a business cycle
• EPS growth > 15 % p.a. over a business cycle
• Gearing ≤ 120 % at end of each year
• Dividend pay-out > 40 %
Financial targets
48
0 %
5 %
10 %
15 %
20 %
25 %
30 %
35 %
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
EBIT margin ROI EBIT margin (average) ROI (average)
23%
18%
EBIT and ROI development
Long-term EBIT and ROI development
APPENDIX
49
CONSOLIDATED INCOME STATEMENT
(EUR 1,000) 1-3/11 1-3/10 1-12/10
Net sales 134 351 111 525 531 284
Other operating income 342 299 1 616
Materials and services -43 815 -38 690 -177 118
Employee benefit expenses -36 629 -33 493 -136 214
Depreciation and amortisation -24 933 -23 115 -97 716
Other operating expenses -26 635 -22 117 -92 122
EBIT 2 681 -5 591 29 731
Financial income 2 116 6 101 13 780
Financial expenses -4 954 -6 528 -22 658
EBT -157 -6 019 20 853
Income taxes 50 707 -6 212
NET RESULT FOR THE PERIOD -108 -5 312 14 640
Net result for the period attributable to:
Owners of the parent company -108 -5 312 14 640
Non-controlling interest - - -
TOTAL -108 -5 312 14 640
Earnings per share (EPS), basic and diluted, EUR0,00 -0,05 0,13
50
BALANCE SHEET – ASSETS
(EUR 1,000) 31.3.2011 31.3.2010 31.12.2010
NON-CURRENT ASSETS
Property, plant and equipment 432 136 453 074 427 248
Goodwill 94 030 93 398 93 211
Other intangible assets 10 565 7 047 10 348
Available-for-sale investments 422 53 422
Deferred tax assets 14 347 9 593 13 325
NON-CURRENT ASSETS, TOTAL 551 500 563 164 544 555
CURRENT ASSETS
Inventories 16 493 14 714 15 856
Trade and other receivables 94 804 82 801 96 616
Current tax assets 2 371 3 427 2 902
Cash and cash equivalents 911 2 758 1 352
CURRENT ASSETS, TOTAL 114 580 103 701 116 727
Non-current assets held for sale - 370 -
TOTAL ASSETS 666 080 667 234 661 282
51
(EUR 1,000) 31.3.2011 31.3.2010 31.12.2010
EQUITY
Share capital 25 000 25 000 25 000
Revaluation fund -1 258 -3 207 -2 472
Invested unrestricted equity fund 113 329 113 329 113 329
Retained earnings 179 374 174 143 181 783
Items recognised directly to equity on non-current assets held for sale - 62 -
PARENT COMPANY SHAREHOLDERS’ EQUITY 316 445 309 327 317 640
Non-controlling interests - - -
EQUITY, TOTAL 316 445 309 327 317 640
NON-CURRENT LIABILITIES
Deferred tax liabilities 59 880 53 178 60 413
Pension obligations 7 106 10 380 6 866
Provisions 2 205 3 557 2 347
Interest-bearing liabilities 131 408 197 728 137 384
Other long-term liabilities 2 602 - 2 200
NON-CURRENT LIABILITIES, TOTAL 203 200 264 844 209 209
CURRENT LIABILITIES
Trade payables and other liabilities 82 362 68 587 89 480
Provisions 1 415 6 956 1 762
Current tax liabilities 2 595 828 2 658
Interest-bearing liabilities 60 063 16 692 40 533
CURRENT LIABILITIES, TOTAL 146 435 93 063 134 433
LIABILITIES, TOTAL 349 635 357 907 343 642
TOTAL EQUITY AND LIABILITIES 666 080 667 234 661 282
BALANCE SHEET – EQUITY AND LIABILITIES
52
KEY FIGURES
MEUR 1-3/11 1-3/10 Change 1-12/10
Net sales134.4 111.5 20.5 % 531.3
EBITDA27.6 17.5 57.6 % 127.4
EBITDA,%20.6 % 15.7 % 24.0 %
EBIT2.7 -5.6 147.9 % 29.7
EBIT, %2.0 % -5.0 % 5.6 %
ROI,% 9.3 % 5.8 % 8.6 %
Invested capital, end of period507.9 523.7 -3.0 % 495.6
Net debt190.6 211.7 -10.0 % 176.6
Gearing, %60.2 % 68.4 % 55.6 %
Equity ratio,%47.5 % 46.4 % 48.0 %
Personnel, end of period3 045 3 047 -0.1 % 3 048
Gross capital expenditure31.9 12.5 155.1 % 62.0
Gross capital expenditure, % net sales 23.7 % 11.2 % 11.7 %
Cash flow after investments -10.7 -4.0 -165.3 % 48.0
Earnings per share, (diluted), EUR 0.00 -0.05 98.0 % 0.13
Dividend per share, EUR0.25
53
CONDENSED CASH FLOW STATEMENT
MEUR 1-3/11 1-3/10 Change 1-12/10
Cash flow from operating activities 27.3 9.8 178.2 % 104.2
Cash flow from investing activities -38.1 -13.9 -174.5 % -56.2
Cash flow from financing activities
Borrowings / repayment of short-term debt 18.7 -7.4 352.8 % 0.6
Borrowings / repayment of long-term debt -5.2 12.4 -141.6 % -29.8
Acquisition of treasury shares -3.3 - n/a -2.9
Dividends paid - - n/a -16.3
Cash flow from financing activities 10.3 5.0 105.7 % -48.5
Net change in cash and cash equivalents -0.4 1.0 -145.0 % -0.5
Cash and cash equivalents at the beginning of the period 1.4 1.8 -24.9 % 1.8
Translation difference on cash and cash equivalents - - 0.1
Net change in cash and cash equivalents -0.4 1.0 -146.0 % -0.5
Cash and cash equivalents at the end of the period 0.9 2.8 -67.0 % 1.4
54
SEGMENT INFORMATION
Net sales, MEUR 1-3/11 1-3/10 Change 1-12/10
Finland, net sales (external) 29.2 27.9 4.4 % 135.2
-Inter-segment sales 1.1 0.2 551.1 % 1.8
Sweden, net sales (external) 41.0 29.3 40.0 % 144.5
-Inter-segment sales 0.3 0.1 201.4 % 0.7
Norway, net sales (external) 32.4 28.3 14.7 % 113.7
-Inter-segment sales 0.2 0.1 192.8 % 0.7
Denmark, net sales (external) 8.2 7.7 6.9 % 32.9
-Inter-segment sales 0.2 0.5 -57.1 % 2.7
Europe East, net sales (external) 9.3 6.6 40.6 % 39.5
-Inter-segment sales 0.1 0.9 -89.3 % 3.2
Europe Central, net sales (external) 14.3 11.8 21.5 % 65.4
-Inter-segment sales 0.1 0.3 -75.6 % 1.2
Elimination of sales between segments -1.9 -2.0 3.3 % -10.2
Net sales, total 134.4 111.5 20.5 % 531.3
55
EBIT BY SEGMENT
EBIT (EUR million) 1-3/11 1-3/10 Change 1-12/10
Finland 1.3 -0.2 705.1 % 13.7
% of net sales 4.4 % -0.8 % 10.0%
Sweden 6.1 2.6 139.0 % 23.3
% of net sales 14.9 % 8.8 % 16.1%
Norway 0.4 -0.4 184.9 % 2.3
% of net sales 1.2 % -1.6 % 2.0%
Denmark -1.3 -0.6 -97.5 % -2.2
% of net sales -15.0 % -7.8 % -6.2%
Europe East -1.7 -2.4 31.1 % -3.5
% of net sales -17.7 % -32.2 % -8.3%
Europe Central -1.2 -2.6 55.4 % 0.8
% of net sales -8.2 % -21.8 % 1.2%
Net items not allocated to operating segments
-1.1 -1.8 38.9 % -4.7
Group EBIT 2.7 -5.6 147.9 % 29.7
% of net sales 2.0 % -5.0 % 5.6%
56
LARGEST SHAREHOLDERS
Number of shares% of share
capital
1. Nordstjernan AB 31,882,078 29.33
2. Julius Tallberg Oy Ab 11,962,229 11.01
3. Varma Mutual Pension Insurance Company 7,831,299 7.20
4. Ilmarinen Mutual Pension Insurance Company 5,537,214 5.09
5. Tapiola Mutual Pension Insurance Company 2,320,000 2.13
6. Odin Norden 1,824,328 1.68
7. Odin Finland 1,417,968 1.30
8. Veritas Pension Insurance Company Ltd 1,235,668 1.14
9. Odin Europa Smb 1,082,355 1.00
10. Nordea Nordenfonden 933,105 0.86
*As per 31 March 201157