Ramirent Q2 2011
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Transcript of Ramirent Q2 2011
Interim reportJanuary-June201112 August 2011
President and CEO Magnus Rosén
CFO Jonas Söderkvist
Q2/11: Profitability improving
APRIL – JUNE 2011
Net sales up 16.1% MEUR 149.5
(128.7) or 13.7 % at comparable
exchange rates
EBITDA MEUR 40.6 (30.7)
EBITDA-margin 27.2% (23.9%)
EBIT MEUR 15.4 (7.4)
EBIT-margin 10.3% (5.8%)
Gross capex MEUR 44.6 (21.7)
Cash flow after investments
MEUR -20.4 (13.4)
Number of outlets 399 (353)
Acquisitions made in Norway,
Sweden, Finland and Czech
Republic
2
Highlights H1/11
JANUARY – JUNE 2011
Net sales up 18.1% MEUR 283.9
(240.3) or 14.4 % at comparable
exchange rates
EBITDA MEUR 68.2 (48.3)
EBITDA-margin 24.0% (20.1%)
EBIT MEUR 18.1 (1.9)
EBIT-margin 6.4% (0.8%)
Gross capex MEUR 76.5 (34.2)
Cash flow after investments
MEUR -31.1 (9.4)
Net debt MEUR 238.2 (209.3)
Gearing 80.4% (70.6%)
3
Ramirent reiterates its outlook for 2011. As a result of increased construction activity and improving price levels, net sales are expected to increase in 2011, and the result before taxes is expected to improve compared to 2010.
Market and Ramirent outlook as of 12 August 2011
4
Overall, the new residential, infrastructure and renovation construction markets are expected to develop favourably, especially in the Nordic countries, while demand for commercial construction remains weak. Taking this into account, Ramirent expects the recovery in its markets to continue. Also, the improved balance between supply and demand indicates a healthier price level.
However, due to the current financial turmoil, market risks have increased. Ramirent maintains a cautious stance since uncertainties in the macroeconomic development persist.
Market outlook 2011 Ramirent Outlook 2011
Five new acquisitions signed in Q2/11
Outsourcing deal
2010
Outsourcing deal
2011
Acquisition of rental business
Acquisition of rental business
5
End of 2009
Outsourcing deal with two Lemminkäinen subsidiaries
Outsourcing deal
Some 50 companies monitored on our target list
Acquisition of rental business
Outsourcing deal
Acquisition of rental business
Aquisition of rental business
Acquisition ofrental businessAcquisition of
rental business
Acquisition of rental business
Acquisition of high-class module specialist Rogaland Planbygg AS
Major acquisition for Ramirent Norway
Estimated annual sales of MEUR 22
In effect from 1 July 2011
Founded in 1997; based in Tananger,
south of Stavanger
Focused on high class rental
accommodation and office modules
Key customer sectors: Oil & Gas
Industry, public sector (kindergardens
and schools)
6
Acquisition of Hyrman i Lund AB
One of the largest acquisitions for
Ramirent Sweden
Estimated annual sales of MEUR 15
In effect from 1 August 2011
Founded in 2000, leading player in
southern Sweden with 7 outlets
Operations in the highly active
regions of Skåne and Halland
Key customer sectors: construction,
civil engineering and industrial
sectors
7
8
Outlet
Local head office
Re-renting agents
Outlet network expanded
Number of outlets all
time high at 399 (353)
(excl. acquisitions of Rogaland
Planbygg in Norway and Hyrman
in Sweden)
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
9
SEGMENT REVIEW
10
29
34
41
3128
36 3835
30
37
-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
Q2
Net sales EBIT-%
Q2 2011 Finland
11
MEUR
Highlights Historic financial performance
Q2 January - June Full Year
Finland 2011 2010 Change(EUR)
Change(Local)
2011 2010 Change(EUR)
Change(Local)
2010
Net sales, MEUR 36.5 36.1 1 % 1 % 66.8 64.2 4 % 4 % 136.9
EBIT, MEUR 4.7 4.0 18 % 6.1 3.8 60 % 13.7
EBIT-margin 12.9 % 11.1 % 9.1 % 5.9 % 10.0%
Employees 633 641 -1 % 603
Outlets 85 83 2 % 84
Main growth driver was residential construction, while growth was slowed down by lower activity in shipyards, industrial maintenance and in the private household sector
Profitability improved based on higher utilisation levels and improving pricing environment
Ramirent Finland Oy acquired the shares of Finnish weather protection company SuomenSääsuoja Oy
Q2 2011 Sweden
12
Growth was driven by the civil engineering, public and housing sectors. Geographically, growth was driven by Stockholm and its surrounding areas as well as southern regions of the country
Profitability improved based on higher capacity utilisation, but is still burdened by low price levels
Ramirent signed an agreement to acquire Hyrman i Lund AB with seven outlets in Southern Sweden contributing to annual net sales with about MEUR 15
Historic financial performance
32 33 31 3229
35 36
4541 42
0 %
5 %
10 %
15 %
20 %
25 %
0
10
20
30
40
50
Q12009
Q2 Q3 Q4 Q12010
Q2 Q3 Q4 Q12011
Q2
Net sales EBIT-%
MEUR
Highlights
Q2 January - June Full Year
Sweden 2011 2010 Change(EUR)
Change(Local)
2011 2010 Change(EUR)
Change(Local)
2010
Net sales, MEUR 42.1 34.9 21 % 13 % 83.4 64.2 30 % 18 % 145.2
EBIT, MEUR 7.0 5.0 38 % 13.1 7.6 72 % 23.3
EBIT-margin 16.5 % 14.4 % 15.7 % 11.8 % 16.1 %
Employees 563 540 4 % 546
Outlets 73 69 6 % 73
Q2 2011 Norway
13
Growth driven by construction especially in the western and northern parts of Norway
Profitability still low, but measures have been taken to improve efficiency in the outlet network and for increasing price levels
New nationwide cooperation agreement with Veidekke
Ramirent signed an agreement to acquire Rogaland Planbygg AS contributing to annual net sales with approximately MEUR 22
Historic financial performance
29
2527
29 28 27 28
31 33 30
-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
Q2
Net sales EBIT-%
MEUR
Highlights
Q2 January - June Full Year
Norway 2011 2010 Change(EUR)
Change(Local)
2011 2010 Change(EUR)
Change(Local)
2010
Net sales, MEUR 30.5 27.4 11 % 10 % 63.1 55.7 13 % 11 % 114.4
EBIT, MEUR 2.4 1.0 134 % 2.8 0.6 383 % 2.3
EBIT-margin 7.9 % 3.7 % 4.4 % 1.0 % 2.0 %
Employees 518 519 0 % 503
Outlets 43 38 13 % 42
Q2 2011 Denmark
14
Market conditions improved further during the second quarter, but profitability is still burdened by low price levels
Focus remained on cost control and measures to restore healthier pricing levels as utilisation levels are improving
Historic financial performance
1112
1110
89 9 10
8
10
-50 %
-40 %
-30 %
-20 %
-10 %
0 %
10 %
0
2
4
6
8
10
12
14
Q12009
Q2 Q3 Q4 Q12010
Q2 Q3 Q4 Q12011
Q2
Net sales EBIT-%
MEUR
Highlights
Q2 January - June Full Year
Denmark 2011 2010 Change(EUR)
Change(Local)
2011 2010 Change(EUR)
Change(Local)
2010
Net sales, MEUR 9.9 9.0 10 % 10 % 18.2 17.1 7 % 7 % 35.6
EBIT, MEUR -0.3 -0.7 N/A -1.5 -1.3 N/A -2.2
EBIT-margin -2.9 % -7.4 % -8.4 % -7.6 % -6.2 %
Employees 160 148 8 % 160
Outlets 21 20 5 % 20
Q2 2011 Europe East
15
Growth driven by infrastructural construction in Russia and energy-related investments in Baltics and Ukraine. The positive development in business volumes continued in the Baltic States, especially in Lithuania, and also in Ukraine
Profitability started to recover based on increasing business volumes and higher price levels
New outlets opened in the Baltics, mainly in Lithuania and Estonia, as well as in the Russian city of Sochi
Historic financial performance
9
12
19
11
8
10
1213
9
13
-40 %
-30 %
-20 %
-10 %
0 %
10 %
20 %
0
5
10
15
20
Q12009
Q2 Q3 Q4 Q12010
Q2 Q3 Q4 Q12011
Q2
Net sales EBIT-%
MEUR
Highlights
Q2 January - June Full Year
Europe East 2011 2010 Change(EUR)
Change(Local)
2011 2010 Change(EUR)
Change(Local)
2010
Net sales, MEUR 13.0 9.5 37 % 40 % 22.4 17.0 32 % 33 % 42.7
EBIT, MEUR 1.0 -1.6 N/A -0.7 -4.0 N/A -3.5
EBIT-margin 7.5 % -16.5 % -3.0 % -23.4 % -8.3 %
Employees 411 394 4 % 392
Outlets 51 45 13 % 48
Q2 2011 Europe Central
16
The growth drivers were the strong construction and industrial activity in Poland
Profitability was burdened by low price levels and business volumes especially in Czech Republic and Hungary
Shop-in-shop concept launched in Poland with Leroy Merlin in three stores located in Warsaw, Poznańand Szczecin
Two acquisitions of machinery and equipment rental businesses in Czech Republic
Historic financial performance
1416
1816
12
16
20 19
14
19
-25 %
-20 %
-15 %
-10 %
-5 %
0 %
5 %
10 %
15 %
0
5
10
15
20
25
Q12009
Q2 Q3 Q4 Q12010
Q2 Q3 Q4 Q12011
Q2
Net sales EBIT-%
MEUR
Highlights
Q2 January - June Full Year
Europe Central 2011 2010 Change(EUR)
Change(Local)
2011 2010 Change(EUR)
Change(Local)
2010
Net sales, MEUR 19.0 15.9 20 % 18 % 33.4 28.0 19 % 18 % 66.6
EBIT, MEUR 1.1 0.3 264 % -0.1 -2.3 N/A 0.8
EBIT-margin 5.7 % 1.9 % -0.3 % -8.4 % 1.2 %
Employees 879 812 8 % 824
Outlets 126 98 29 % 111
FINANCIAL REVIEW
17
Financial performance continued to develop positively in Q2
18
Net Sales (MEUR) EBITDA (MEUR)
Cash flow (MEUR) Net debt (MEUR) Gross Capex (MEUR)
EBIT (MEUR)
35
3
8
13
22
10
18
32
45
0 %
5 %
10 %
15 %
20 %
25 %
30 %
35 %
0
10
20
30
40
50
Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
Q2
Gross Capex Share of net sales-%
281255
230207212209
197177
191
238
0 %
20 %
40 %
60 %
80 %
100 %
120 %
0
50
100
150
200
250
300
Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
Q2
Net debt Gearing-%
7
1412
-4-6
7
17
11
3
15
-6 %
-4 %
-2 %
0 %
2 %
4 %
6 %
8 %
10 %
12 %
14 %
-10
-5
0
5
10
15
20
Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
Q2
EBIT EBIT-%
30
36 37
26
18
31
42
37
28
41
0 %
5 %
10 %
15 %
20 %
25 %
30 %
35 %
0
5
10
15
20
25
30
35
40
45
Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
Q2
EBITDA EBITDA-%
122125130126
112
129141
150
134
150
-40 %
-30 %
-20 %
-10 %
0 %
10 %
20 %
30 %
0
20
40
60
80
100
120
140
160
Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
Q2
Net sales Y-o-y change-%
18
2822
20
-4
13 14
24
-11
-20-30
-20
-10
0
10
20
30
40
Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
Q2
Cash flow after investments
Net sales grew 16.1% in Q2/2011 due to increased activity levels in the market
19
19 % 19 %
13 %
-4 %
-25 %
-31 % -31 %
-27 %
-9 %
3 %
9 %
19 % 20 %
16 %
-40 %
-30 %
-20 %
-10 %
0 %
10 %
20 %
30 %
Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
Q2
Change in net sales YoY, %
20
16 %
1 %
21 %
11 %10 %
37 %
20 %
14 %
1 %
13 %10 %
10 %
40 %
18 %
1 %
22 %
12 %
24 %
51 %
21 %
0 %
10 %
20 %
30 %
40 %
50 %
60 %
Group Finland Sweden Norway Denmark East Central
EUR Comparable exchange rates Adjusted for inter-segment sales (in EUR)
Change in Q2 net sales YoY, %
Net sales grew in all segments both in eurosand in comparable exchange rates
Group April - June 2011 Net sales increased by 16.1% (13.7% 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
536
0 %
20 %
40 %
60 %
80 %
100 %
120 %
140 %
160 %
0
100
200
300
400
500
600
700
800
Q1
2007
Q2 Q3 Q4 Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
Q2
Invested capital Net sales/Invested capital Rolling 12 month basis
MEUR
21
Invested capital by quarter
Capital turnover amounted to 110% end of June 2011 (94% end of June 2010)
Gross margin has improved compared to previous year but is still below pre-downturn level
22
Gross margin by quarter
Gross margin is impacted by price pressure and increased equipment transportation
and use of external services
71 % 71 % 71 %
68 %
70 %
71 %
70 %
68 %
65 %
69 %
65 %
67 %
68 %
66 %
67 %67 %
68 %
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
Total workforce has increased slightly due to recovering demand and acquisitions
At the end of June 2011, the Group’s workforce amounted to 3,185 (3,071) persons
At the end of December 2010, the Group’s workforce amounted to 3,048 (3,021) persons
23
641
540 519
148
394
812
633563
518
160
411
879
0
100
200
300
400
500
600
700
800
900
1 000
Finland Sweden Norway Denmark Europe East Europe
CentralPersonnel 30/06/10 Personnel 30/06/11
Number of employees by segment
Record high number of outlets in the Group
96
85
57
73
37
431
8 21
52 51
99 1
26
0
50
100
150
200
250
300
350
400
450
Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
Q2
Finland Sweden Norway Denmark Europe East Europe Central
359
399
24
Number of outlets per segment
Fixed cost development continues on stable level
4435 30 33 33 33 33 32
38 37 37
29
2222 19
23 22 23 22
24 27 25
0
10
20
30
40
50
60
70
80
Q3
2008
Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
Q2
Employee benefit expenses Other operating expenses
25
5752 52
57 56 5654
73
Fixed costs by quarter
MEUR
63 62
The fixed cost level increased year-on-year due to a higher number of employees, intensified sales activities and expenses related to development of Ramirent’scommon platform and outlet network.
63
Q2/2011 EBIT-margin was 10.3% (5.8%)
Q2 EBIT margin increased to 10.3%
26
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 %
10.3 %
-15 %
-10 %
-5 %
0 %
5 %
10 %
15 %
20 %
25 %
Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
Q2
EBIT margin by quarter
Q2 EBIT margin improved in all segments compared to previous year
5.8 %
11.1 %
14.4 %
3.7 %
-7.4 %
-16.5 %
1.9 %
10.3 %
12.9 %16.5 %
7.9 %
-2.9 %
7.5 % 5.7 %
-20 %
-15 %
-10 %
-5 %
0 %
5 %
10 %
15 %
20 %
Group Finland Sweden Norway Denmark East Central
Q2 2010 Q2 2011
27
EBIT-margin by segments
2.04.4
2.1
6.5 7.5
18.9
8.9
17.4
29.6
38.3
3.75.0
6.74.7 5.0
3.7 3.3 4.4 3.75.2
0
5
10
15
20
25
30
35
40
45
Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
Q2
Purchased equipment Sold equipment
28
Q2 2011 fleet investment rose to EUR 38.3 million
Purchased and sold equipment by quarter
MEUR
In April-June 2011, gross capital expenditure was EUR 44.6 (21.7) million of which
EUR 38.3 (18.9) million in rental fleet
The value of sold rental equipment was EUR 5.2 (3.7) million.
Capital expenditure increased in all segments to meet the increasing demand
34
1215
7
0 2 3
76
18
25
12
5 710
0
10
20
30
40
50
60
70
80
90
Group Finland Sweden Norway Denmark East Central
1-6/2010 1-6/2011
29
Capital Expenditure by segments
MEUR
Working capital is at 7% of net sales
16 15 15 15 15 14 14 16 16 17
86 88 90 80 83 90 99 97 95109
-66 -68 -70 -67 -69-86 -86 -89 -82 -84
-10 %
-8 %
-6 %
-4 %
-2 %
0 %
2 %
4 %
6 %
8 %
10 %
-120
-80
-40
0
40
80
120
Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
Q2
Inventories Trade and other receivables
Trade payables and other liabilities Working capital/Net sales Rolling 12 month basis
30
Working capital by quarter
MEUR
-55
-30
25
67
1828 22 20
-4
13 1424
-11-20
5682
-11
-59
-22 -26 -25-23
5
-2-12
-21
14
48
-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
Q2
Cash flow after investments Change in net debt
Cash flow after investments EUR -31.1 milliondue to increased fleet investments and acquisitions
31
Cash flow versus change in net debt
MEUR
Change of net debt in 1-6/2011 is effected by paid dividends of EUR 27.0 million
and purchase of own shares of EUR 3.4 million
96 %
84 %
70 %
69 %
81 %
113 %106 % 108 %
99 %
86 %
74 %
68 %68 %71 %
64 %
56 %60 %
80 %
0 %
20 %
40 %
60 %
80 %
100 %
120 %
0
50
100
150
200
250
300
350
400
2004200520062007 Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
Q2
Net debt Gearing (%)
Strong financial position with gearing at 80%
32
Net debt and gearing
MEUR
Equity ratio decreased to 42.5% (44.3%)
Net debt amounted to EUR 238.2 (209.3) million
On 30 June 2011 unused committed back-up loan facilities were EUR 126.0 million
CMD 2011
Welcome to Ramirent’s
Capital Market Day
1 September 2011
from 9:00-16:00
in Vantaa, Finland
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)
399 rental customer centers located in 13 countries and
providing 200 000 rental items
Listed on NASDAQ OMX Helsinki since 1998
3 185 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
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
38
Our strategic choices
38
Values
Open, Progressive, Engaged
Brand promise
Let’s solve it
One of the leading equipment rental companies both in Europe (#3) and globally (#12)
0 200 400 600 800 1000
Loxam
Cramo*
Ramirent
Algeco …
Speedy Hire
Sarens
Liebherr-…
Kiloutou
Mediaco …
HKL …
*Cramo + Theisen PF
Source: IRN June 2011
39
Turnover 2010 (MEUR) Turnover 2010 (MEUR)
Largest rental companies in Europe Largest rental companies globally
0 500 1000 1500 2000
Ramirent
Cramo*
Nikken Corp
Nishio Rent All Co
Loxam
Hertz Equipment Rental
Coates Hire Ltd
Algeco Scotsman
RSC Equipment Rental
Ashtead Group
United Rentals
Aggreko
Nordic countries are our largest markets and construction is our largest customer sector
40
Finland
23 %
Sweden29 %
Norway
22 %
Denmark
6 %
Europe
East
8 %
Europe
Central
12 %
Sales per segment 1-6/2011
Construction
76%
Industry
14 %
Public sector5 %
Households
5 %
Sales per customer sector 2010
Leading market positionsin all our markets
41
Ukraine5 depots
Market #~4
Hungary2
16 depots Market #1
Russia1
6 depots10 re-renting
agents Market #1
Finland85 depots
(25 franchises) Market #1
Slovakia35 depots
(17 franchises) Market #1
Baltic40 depots Market #2
Norway43 depots
(4 franchises) Market #1
Denmark21 depots Market #1
1) St Petersburg + Moscow 2) Excl. Fomrworks business
Czech31 depots
(7 franchises) Market #~3
Poland2
44 depotsMarket #1
Sweden73 depots
(10 franchises) Market #2
Total3,185
Finland633
Sweden563
Norway518
Denmark160
EuropeEast411
EuropeCentral
879
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 services• Planning, design• Ramirent know-how• Transportation/Installation• Maintenance/Inspections• Insurance
• Operators• Fuel / gas refilling• Facility management• Technical support• Site logistics coordinator• Paperwork
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 ….
Equipment rental• Lifts• Modules• Heavy Machinery• Light Machinery• Tower Cranes & Hoists
• Scaffolding• Power & Heating• SAFE
44
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
Inhabitants (million)
Construction output (BEUR)
0 %
10 %
20 %
30 %
40 %
50 %
60 %
70 %
Europe avg.
FI DK SE UK
Note: Finland company estimate
Ramirent Cramo
Algeco Scotsman Speedy Hire
Liebherr-Mietpartner GAM
Mediaco Lifting Harsco Infrastructur
Kiloutou Others
46
Top 10 companies account for 19% of
the Europe market of 20.2 BEUR
Increasing
rental penetration
European consolidation
opportunities
High potential CEEconstruction markets
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
3,200 dedicated problem solvers
Emerging stronger than before Ramirent is ready to capture
the opportunities in its markets
49
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
APPENDIX
50
CONSOLIDATED INCOME STATEMENT
(EUR 1,000) 4-6/11 4-6/10 1-6/11 1-6/10 1-12/10
Net sales 149 527 128 749 283 878 240 275 531 284
Other operating income 327 613 669 912 1 616
Materials and services -47 628 -42 628 -91 443 -81 318 -177 118
Employee benefit expenses -36 599 -32 595 -73 229 -66 089 -136 214
Depreciation and amortisation -25 154 -23 294 -50 087 -46 409 -97 716
Other operating expenses -25 026 -23 398 -51 661 -45 515 -92 122
EBIT 15 446 7 447 18 127 1 856 29 731
Financial income 1 990 3 617 4 106 9 718 13 780
Financial expenses -4 921 -4 968 -9 875 -11 496 -22 658
EBT 12 515 6 097 12 358 78 20 853
Income taxes -3 438 -1 804 -3 388 -1 097 -6 212
NET RESULT FOR THE PERIOD 9 078 4 293 8 970 -1 019 14 640
Net result for the period attributable to:
Owners of the parent company 9 078 4 293 8 970 -1 019 14 640
Non-controlling interest - - - - -
TOTAL 9 078 4 293 8 970 -1 019 14 640
Earnings per share (EPS), basic and diluted, EUR 0,08 0,04 0,08 -0,01 0,13
51
BALANCE SHEET – ASSETS
(EUR 1,000) 30.6.2011 30.6.2010 31.12.2010
NON-CURRENT ASSETS
Property, plant and equipment 443 969 446 885 427 248
Goodwill 96 379 94 559 93 211
Other intangible assets 12 079 6 780 10 348
Available-for-sale investments 422 53 422
Deferred tax assets 14 811 11 019 13 325
NON-CURRENT ASSETS, TOTAL 567 660 559 296 544 555
CURRENT ASSETS
Inventories 16 987 13 988 15 856
Trade and other receivables 108 574 89 709 96 616
Current tax assets 2 333 2 222 2 902
Cash and cash equivalents 2 029 2 425 1 352
CURRENT ASSETS, TOTAL 129 923 108 345 116 727
Non-current assets held for sale - 370 -
TOTAL ASSETS 697 583 668 011 661 282
52
(EUR 1,000) 30.6.2011 30.6.2010 31.12.2010
EQUITY
Share capital 25 000 25 000 25 000
Revaluation fund -1 632 -3 287 -2 472
Invested unrestricted equity fund 113 329 113 329 113 329
Retained earnings 159 487 161 153 181 783Items recognised directly to equity on non-current assets held for sale - 62 -
PARENT COMPANY SHAREHOLDERS’ EQUITY 296 184 296 258 317 640
Non-controlling interests - - -
EQUITY, TOTAL 296 184 296 258 317 640
NON-CURRENT LIABILITIES
Deferred tax liabilities 60 625 54 414 60 413
Pension obligations 7 158 9 501 6 866
Provisions 1 945 3 432 2 347
Interest-bearing liabilities 149 974 181 025 137 384
Other long-term liabilities 2 452 - 2 200
NON-CURRENT LIABILITIES, TOTAL 222 154 248 372 209 209
CURRENT LIABILITIES
Trade payables and other liabilities 84 125 86 495 89 480
Provisions 1 041 5 184 1 762
Current tax liabilities 3 832 1 003 2 658
Interest-bearing liabilities 90 247 30 698 40 533
CURRENT LIABILITIES, TOTAL 179 245 123 380 134 433
LIABILITIES, TOTAL 401 398 371 753 343 642
TOTAL EQUITY AND LIABILITIES 697 583 668 011 661 282
BALANCE SHEET – EQUITY AND LIABILITIES
53
KEY FIGURES
MEUR 4-6/11 4-6/10 Change 1-6/11 1-6/10 Change 1-12/10
Net sales 149.5 128.7 16.1 % 283.9 240.3 18.1 % 531.3
EBITDA 40.6 30.7 32.1 % 68.2 48.3 41.2 % 127.4
% of net sales 27.2 % 23.9 % 24.0 % 20.1 % 24.0 %
EBIT 15.4 7.4 107.4 % 18.1 1.9 854.1 % 29.7
% of net sales 10.3 % 5.8 % 6.4 % 0.8 % 5.6 %Earnings per share (EPS), (basic and diluted), EUR 0.08 0.04 112.6 % 0.08 -0.01 N/A 0.13
Gross capital expenditure 44.6 21.7 105.6 % 76.5 34.2 123.6 % 62.0Gross capital expenditure,% of net sales 29.8 % 16.8 % 26.9 % 14.2 % 11.7 %
Cash flow after investments -20.4 13.4 N/A -31.1 9.4 N/A 48.0Invested capital at the end of the period 536.4 508.0 5.6 % 495.6Return on invested capital (ROI), % 1) 10.4 % 5.1 % 8.6 %
Return on equity (ROE), % 1) 8.3 % -1.8 % 4.7 %
Net debt 238.2 209.3 13.8 % 176.6
Gearing, % 80.4 % 70.6 % 55.6 %
Equity ratio, % 42.5 % 44.3 % 48.0 %
Personnel at end of period 3 185 3 071 3.7 % 3 048
54
1) The figures are calculated on a rolling twelve month basis.
CONDENSED CASH FLOW STATEMENT
MEUR 1-6/11 1-6/10 Change 1-12/10
Cash flow from operating activities 51.0 39.6 28.8 % 104.2
Cash flow from investing activities -82.1 -30.3 -171.1 % -56.2
Cash flow from financing activities
Borrowings / repayment of short-term debt 48.6 12.8 279.7 % 0.6
Borrowings / repayment of long-term debt 13.6 -5.2 361.6 % -29.8
Acquisition of treasury shares -3.4 - -2.9
Dividends paid -27.0 -16.3 -65.7 % -16.3
Cash flow from financing activities 31.8 -8.7 465.7 % -48.5
Net change in cash and cash equivalents 0.7 0.6 16.6 % -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 0.7 0.6 12.7 % -0.5
Cash and cash equivalents at the end of the period 2.0 2.4 -15.5 % 1.4
55
SEGMENT INFORMATION
Net sales, MEUR 4-6/11 4-6/10 Change 1-6/11 1-6/10 Change 1-12/10
Finland, net sales (external)35.6 35.2 1.1 % 64.8 63.1 2.6 % 135.2
-Inter-segment sales0.9 0.9 7.8 % 2.0 1.0 95.5 % 1.8
Sweden, net sales (external)42.1 34.5 22.1 % 83.1 63.8 30.3 % 144.5
-Inter-segment sales - 0.4 -97.3 % 0.3 0.5 -31.4 % 0.7
Norway, net sales (external)30.4 27.1 12.1 % 62.9 55.4 13.4 % 113.7
-Inter-segment sales0.1 0.3 -80.8 % 0.2 0.3 -34.7 % 0.7
Denmark, net sales (external) 9.7 7.8 23.8 % 17.9 15.5 15.4 % 32.9
-Inter-segment sales0.2 1.2 -83.7 % 0.4 1.7 -76.2 % 2.7
Europe East, net sales (external) 13.0 8.6 50.8 % 22.3 15.2 46.4 % 39.5
-Inter-segment sales- 0.9 -96.9 % 0.1 1.8 -93.2 % 3.2
Europe Central, net sales (external) 18.7 15.5 21.0 % 33.0 27.2 21.2 % 65.4
-Inter-segment sales 0.3 0.4 -34.9 % 0.3 0.7 -52.7 % 1.2
Elimination of sales between segments -1.5 -4.0 63.0 % -3.4 -5.9 43.1 % -10.2
Net sales, total149.5 128.7 16.1 % 283.9 240.3 18.1 % 531.3
56
EBIT BY SEGMENT
EBIT (EUR million) 4-6/11 4-6/10 Change 1-6/11 1-6/10 Change 1-12/10
Finland4.7 4.0 18.0 % 6.1 3.8 59.5 % 13.7
% of net sales12.9 % 11.1 % 9.1 % 5.9 % 10.0 %
Sweden7.0 5.0 38.4 % 13.1 7.6 72.4 % 23.3
% of net sales 16.5 % 14.4 % 15.7 % 11.8 % 16.1 %
Norway2.4 1.0 133.9 % 2.8 0.6 363.1 % 2.3
% of net sales7.9 % 3.7 % 4.4 % 1.0 % 2.0 %
Denmark-0.3 -0,7 57.2 % -1.5 -1.3 -18.4 % -2.2
% of net sales-2.9 % -7.4 % -8.4 % -7.6 % -6.2 %
Europe East1.0 -1.6 162.0 % -0.7 -4.0 83.0 % -3.5
% of net sales 7.5 % -16.5 % -3.0 % -23.4 % -8.3 %
Europe Central 1.1 0.3 263.7 % -0.1 -2.3 95.7 % 0.8
% of net sales 5.7 % 1.9 % -0.3 % -8.4 % 1.2 %
Net items not allocated to operating segments -0.4 -0.7 38.8 % -1.5 -2.5 40.2 % -4.7
Group EBIT15.4 7.4 107.4 % 18.1 1.9 854.1 % 29.7
% of net sales10.3 % 5.8 % 6.4 % 0.8 % 5.6 %
57
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 5,637,214 5.19
5. Tapiola Mutual Pension Insurance Company 2,320,000 2.13
6. Odin Norden 1,820,728 1.68
7. Veritas Pension Insurance Company Ltd 1,474,267 1.36
8. Odin Finland 1,420,458 1.31
9. Odin Europa Smb 1,077,355 0.99
10. Investment Fund Aktia Capital 1,026,002 0.94
*As per 30 June 201158
CONSTRUCTION VOLUME FORECASTS
Construction volume EUR bn % Change
2010 2011F
Finland* 28,800 4.0% -
Sweden** 27,500 8.0%
Norway 33,600 5.9%
Denmark 21,600 2.7% -
Poland 44,950 12.8% -
Hungary 8,300 -3.0%
Czech Republic 18,400 -1.1%
Slovakia 5,200 -1.6%
Estonia 1,800 18.0%
Latvia 2,000 0%
Lithuania 3,000 7.0%
Russia 135,000 3-7% -
59
Source: Euroconstruct as per June 2011*VTT Expert Service Oy as per May 2011,**Swedish Construction Federation 6/2011,
***Excluding Ukraine
Increased forecast
Reduced forecast
No change since
last quarterly report-