Ramirent Q4 2011
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Transcript of Ramirent Q4 2011
Financial bulletin 201116 February 2012
President and CEO Magnus Rosén
CFO Jonas Söderkvist
Q4/11: Back to profitable growth
OCTOBER–DECEMBER 2011
Net sales up 24.4% MEUR 186.8 (150.1) or 23.7% at comparable exchange rates. Organic growth 17.8%
EBITDA MEUR 55.0 (36.9)
EBITDA-margin 29.4% (24.6%)
EBIT MEUR 25.5 (11.3)
EBIT-margin 13.6% (7.5%)
Gross capex MEUR 45.9 (18.1)
Cash flow after investmentsMEUR 15.9 (24.2)
Net debt MEUR 262.8 (176.6)
Gearing 80.6% (55.6%)
Number of outlets 406 (378)
2
Highlights 2011
JANUARY–DECEMBER 2011
Net sales up 22.3% MEUR 649.9 (531.3) or 20.1 % at comparable exchange rates.Organic growth 18.5%
EBITDA MEUR 181.8 (127.4)
EBITDA-margin 28.0% (24.0%)
EBIT MEUR 74.1 (29.7)
EBIT-margin 11.4% (5.6%)
Gross capex MEUR 242.2 (62.0)
Cash flow after investmentsMEUR -52.0 (48.0)
The Board proposes a dividend of EUR 0.28 (0.25) per share for the year 2011
3
Back to profitable growth as market is recovering
EPS growth > 15 % p.a. over a business cycle
4
Recovery in market activity especially in the second half of the year
Higher utilisation and rental rates that improved during the year
Significant investments in acquisitions and outsourcing deals
ROI >18 % p.a. over a business cycle
Gearing ≤ 120 % at end of each fiscal year
16 %
0 %
5 %
10 %
15 %
20 %
25 %
30 %
35 %
2005 2006 2007 2008 2009 2010 2011
ROI Target
81 %
0 %
20 %
40 %
60 %
80 %
100 %
120 %
140 %
2005 2006 2007 2008 2009 2010 2011
Gearing Target
207 %
-200 %
-100 %
0 %
100 %
200 %
300 %
2005 2006 2007 2008 2009 2010 2011
EPS Target
Dividend proposal EUR 0.28 per share
The Board proposes a dividend of EUR 0.28 (0.25) per share for the year 2011
Ramirent’s dividend policy is to distribute at least 40% of annual earnings per share to shareholders as dividends
5
0,33
0,73
1,02
0,31
0,04
0,13
0,41
0,15
0,30
0,50
0,00
0,15
0,250,28
0 %
50 %
100 %
150 %
200 %
250 %
300 %
350 %
400 %
0,00
0,20
0,40
0,60
0,80
1,00
1,20
2005 2006 2007 2008 2009 2010 2011
EPS DPS Dividend pay-out ratio
Earnings per share and dividend pay-out ratio
EUR
*68%
*Board’s proposal
1,6
%
2,1
%
3,3
%
2,5
%
0,5
% 4,3
%
4,3
%
1,6
% 4,5
%
4,0
% 7,7
%
6,2
%
-10
,8 % -6
,2 %
-5,5
%
2,6
%
3,3
%
9,0
%
5,0
%
6,3
%
11
,0 %
12
,9 %
16
,0 %
21
,0 %
-20 %
-15 %
-10 %
-5 %
0 %
5 %
10 %
15 %
20 %
25 %
Hu
ng
ary
Czech
Rep
.
Slo
vakia
Fin
lan
d
Den
mark
Sw
ed
en
Ru
ssia
No
rw
ay
Latv
ia
Po
lan
d
Esto
nia
Lit
hu
an
ia
GDP growth Total construction output growth
Strong construction growth in Ramirent’smain markets in 2011
6
Growth in GDP and Construction output in 2011
Source: Euroconstruct November 2011 / VTT
Outsourcing dealin Denmark
2010
Outsourcing dealin Finland
2011
Acquisition of Czech rental
business
Acquisition of Finnish weather protection
rental company
7
End of 2009
Outsourcing deal with twosubsidiaries 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 ofSwedish rental
company
Acquisition ofDanish rental business
Acquisition of specialist module rental company in Norway
Capex on acquisitions EUR 111.2 million in 2011
Acquisitive impact approximately 8% on Group net sales on an annual level
Danish scaffolding division
Acquisition of Swedish rental
company
Acquisition of Swedish rental
company
Nine acquisitions and two outsourcing deals in 2011
Ramirent is market leader in 5 out of 6 geographical segments
8
Finland83 depots
(25 franchises) Market #1
Europe East58 depots
10 re-renting agents
Market #1
Norway42 depots
(4 franchises) Market #1
Denmark22 depots Market #1
Europe Central122 depots
(24 franchises)Market #1
Sweden79 depots
(10 franchises) Market #2
Total3,184
Finland596
Sweden630
Norway486
Denmark186
EuropeEast439
EuropeCentral
825
Employees
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 realise 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
Progress in achieving the Group’s key strategic objectives
9
Ramirent and market outlook as of 16 February 2012
10
Overall, the new residential construction market is expected to weaken in 2012 while renovation and infrastructure construction markets are expected to develop more favourably, especially in the Nordic countries.
However, Ramirent maintains a cautiousstance since uncertainties in the macroeconomic developement persists.
Market outlook 2012
In 2012, net sales are expected to increase and the result before taxes is expected to improve compared to 2011.
Ramirent outlook for 2012 Country 2012 Source
Finland 0%/-2.2%Finnish construction industries, RT / VTT
Sweden -1%Swedish Construction Federation
Norway 6% Euroconstruct
Denmark 4% Euroconstruct
Poland 4% Euroconstruct
Czech Republic
-4% Euroconstruct
Slovakia 3% Euroconstruct
Hungary -2% Euroconstruct
Russia 0-5% Euroconstruct
Estonia 8% Euroconstruct
Latvia -4% Euroconstruct
Lithuania -4% Euroconstruct
Ukraine n.a Euroconstruct
Europe East
Europe Central
Growth in Nordic construction order books is levelling off
9% growth vs. Q4/10 in real exchange rates and 10% growth in fixed
1% decline vs. Q3/11
11
-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
Order book Nordics (BEUR, real exchange rates)*
Skanska NCC
YIT Lemminkäinen
Change in Net sales YoY, R12 Ramirent Change in order backlog YoY, Nordic construction
* Order books for Swe, Fin, Nor, Den
Construction output still predicted to grow in Ramirent’s markets
12Source: Euroconstruct November 2011
Total construction output 2008 – 2014
Index 2008 = 100 (volume)
98
108
116
93
106
70
75
80
85
90
95
100
105
110
115
120
2008 2009 2010 2011E 2012F 2013F 2014F
Finland Sweden Norway Denmark Europe Central
Business cycle
Growth Stability Positioning Growth Priorities in a downturn scenario
13
Top line•Keep strong discipline in discount levels and price lists •Increase focus on non-construction businessInvestments•Reduce capex•Sell equipment•Return re-rental equipment and leasesOpex•Review organisational structures•Optimise maintenance of equipment to utilisation•Optimise marketing and branding•Reduce indirect costs•Postpone non-crucial development projects
Strong market conditions and
growth 2004-2007
Market downturn reduced need for investments and
improved cash flow 2008-2010
Recovery in demand and increased
investments 2011
In a downturn scenario, multiple levers can be pulled
Actions taken to prepare for possible changes in market conditions
Increased list prices
Reduced average discount level
Refinanced loan facilities
Acquired Rogaland Planbygg to gain access to oil & gas industry with stable demand and long term contracts
Sold non-performing fleet
Increased use of temporary personnel in project business
Streamlined administration personnel
Updated contingency plans
Cautious in capex spending
14
Going forward, several drivers support the growth of equipment rental business
15
Rental penetration
Outsourcing
Rental related solutions
Market consolidation
Long-term growth in construction
markets
In the long term, rental penetration is expected to increase in Europe as customers recognise 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 rental related 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
SEGMENT REVIEW
16
29
34
41
3128
36 3835
30
37
4542
-5 %
0 %
5 %
10 %
15 %
20 %
25 %
0
10
20
30
40
50
Q12009
Q2 Q3 Q4 Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4
Net sales EBIT-%
Q4 2011 Finland
17
MEUR
Highlights Historic financial performance
Q4 January - December
Finland 2011 2010 Change(EUR)
Change(Local)
2011 2010 Change(EUR)
Change(Local)
Net sales, MEUR 42.5 35.2 21% 21% 154.7 136.9 13% 13%
EBIT, MEUR 6.2 2.9 117% 22.8 13.7 66%
EBIT-margin 14.6% 8.1% 14.7% 10.0%
Employees 596 603 -1%
Outlets 83 84 -1%
Growth was driven by high construction and industrial activity
All product areas developed well except heating equipment due to exceptionally warm weather conditions
EBIT was burdened by a write-down of scaffolding equipments of EUR 1.4 million
Q4 2011 Sweden
18
The growth was driven by high construction activity in Stockholm and Gothenburg
Two rental companies were acquired, Consensus and TLM
Renewed frame agreement with NCC and was selected as a total solution supplier of rental equipment in the expansion of Boliden’s operations at the Garpenberg mine over the next three years
Historic financial performance
32 33 31 3229
35 36
4541 42
45
54
0 %
5 %
10 %
15 %
20 %
25 %
0
10
20
30
40
50
60
Q12009
Q2 Q3 Q4 Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4
Net sales EBIT-%
MEUR
Highlights
Q4 January - December
Sweden 2011 2010 Change(EUR)
Change(Local)
2011 2010 Change(EUR)
Change(Local)
Net sales, MEUR 53.9 44.9 20% 17% 182.7 145.2 26% 19%
EBIT, MEUR 11.9 8.3 44% 33.2 23.3 42%
EBIT-margin 22.2% 18.5% 18.2% 16.1%
Employees 630 546 15%
Outlets 79 73 8%
Q4 2011 Norway
19
Residential construction in the major cities was driving demand, alongside with the oil and gas industry
Profitability improved based on good fleet utilisation, improving price levels, and strict cost control
Historic financial performance
2925 27
29 28 27 2831 33
30
40 42
-4 %
-2 %
0 %
2 %
4 %
6 %
8 %
10 %
12 %
14 %
16 %
0
5
10
15
20
25
30
35
40
45
Q12009
Q2 Q3 Q4 Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4
Net sales EBIT-%
MEUR
Highlights
Q4 January - December
Norway 2011 2010 Change(EUR)
Change(Local)
2011 2010 Change(EUR)
Change(Local)
Net sales, MEUR 42.0 31.1 35% 30% 144.8 114.4 27% 23%
EBIT, MEUR 4.5 0.1 N/A 11.2 2.3 379%
EBIT-margin 10.7% 0.3% 7.7% 2.0%
Employees 486 503 -3%
Outlets 42 42 -
Q4 2011 Denmark
20
Growth was driven by improving construction activity, including infrastructure projects
EBIT improved due to good fleet utilisation and stable price levels
Acquired scaffolding division of Ajos A/S, a subsidiary of construction company MT Højgaard A/S, and in the same transaction, Ramirent sold its hoist and working platforms to Ajos A/S
Historic financial performance
1112
1110
89 9 10
810
11
15
-50 %
-40 %
-30 %
-20 %
-10 %
0 %
10 %
20 %
0
2
4
6
8
10
12
14
16
Q12009
Q2 Q3 Q4 Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4
Net sales EBIT-%
MEUR
Highlights
Q4 January - December
Denmark 2011 2010 Change(EUR)
Change(Local)
2011 2010 Change(EUR)
Change(Local)
Net sales, MEUR 14.6 9.5 53% 53% 44.1 35.6 24% 24%
EBIT, MEUR 0.8 -0.7 N/A 0.1 -2.2 N/A
EBIT-margin 5.4% -7.8% 0.2% -6.2%
Employees 186 160 16%
Outlets 22 20 10%
Q4 2011 Europe East
21
Due to favourable marketconditions, good and stable growth continued in all Europe East countries
EBIT improved based on higher utilisation and price levels
Historic financial performance
9
12
19
11
8
10
1213
9
13
17 16
-40 %
-30 %
-20 %
-10 %
0 %
10 %
20 %
30 %
0
5
10
15
20
Q12009
Q2 Q3 Q4 Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4
Net sales EBIT-%
MEUR
Highlights
Q4 January - December
Europe East 2011 2010 Change(EUR)
Change(Local)
2011 2010 Change(EUR)
Change(Local)
Net sales, MEUR 16.5 13.4 23% 27% 56.1 42.7 31% 32%
EBIT, MEUR 2.3 1.1 105% 5.9 -3.5 N/A
EBIT-margin 14.2% 8.5% 10.5% -8.3%
Employees 439 392 12%
Outlets 58 48 21%
Q4 2011 Europe Central
22
In Poland construction and industrial activity continued to drive demand, whereas the market development weakened further in the other countries in the segment
Profitability improved in Poland but was burdened by lower price levels and utilisations rates in Hungary, Czech Republic and Slovakia
Historic financial performance
1416
1816
12
16
20 19
14
19
22
19
-25 %
-20 %
-15 %
-10 %
-5 %
0 %
5 %
10 %
15 %
20 %
0
5
10
15
20
25
Q12009
Q2 Q3 Q4 Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4
Net sales EBIT-%
MEUR
Highlights
Q4 January - December
Europe Central 2011 2010 Change(EUR)
Change(Local)
2011 2010 Change(EUR)
Change(Local)
Net sales, MEUR 18.9 18.9 - 10% 73.9 66.6 11% 13%
EBIT, MEUR 2.0 1.0 111% 5.5 0.8 N/A
EBIT-margin 10.8% 5.1% 7.4% 1.2%
Employees 825 824 -
Outlets 122 111 10%
FINANCIAL REVIEW
23
Positive development in financial performance continued in Q4
24
Net Sales (MEUR) EBITDA (MEUR)
Cash flow (MEUR) Net debt (MEUR) Gross Capex (MEUR)
EBIT (MEUR)
3 5 3 8 1322
1018
3245
120
46
0 %
10 %
20 %
30 %
40 %
50 %
60 %
70 %
80 %
0
20
40
60
80
100
120
140
Q12009
Q2 Q3Q4Q12010
Q2Q3Q4Q12011
Q2Q3Q4
Gross Capex Share of net sales-%
281255
230207212209
197177
191
238
280263
0 %
20 %
40 %
60 %
80 %
100 %
120 %
0
50
100
150
200
250
300
Q12009
Q2 Q3Q4Q12010
Q2Q3Q4Q12011
Q2Q3Q4
Net debt Gearing-%
7
1412
-4-6
7
17
11
3
15
31
25
-10 %
-5 %
0 %
5 %
10 %
15 %
20 %
-10
-5
0
5
10
15
20
25
30
35
Q12009
Q2 Q3Q4Q12010
Q2Q3Q4Q12011
Q2Q3Q4
EBIT EBIT-%
3036 37
26
18
31
4237
28
41
5955
0 %
5 %
10 %
15 %
20 %
25 %
30 %
35 %
0
10
20
30
40
50
60
70
Q12009
Q2 Q3 Q4 Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4
EBITDA EBITDA-%
122125130126112
129141
150134
150
179187
-40 %
-30 %
-20 %
-10 %
0 %
10 %
20 %
30 %
40 %
0
20
40
60
80
100
120
140
160
180
200
Q12009
Q2 Q3Q4Q12010
Q2Q3Q4Q12011
Q2Q3Q4
Net sales Y-o-y change-%
18
2822 20
-4
13 14
24
-11
-20
-37
16
-50
-40
-30
-20
-10
0
10
20
30
40
Q12009
Q2 Q3 Q4 Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4
Cash flow after investments
Net sales grew 24.4% in Q4/2011, organic growth was 17.8%
Net sales January-December 2011: +22.3% (+18.5% organic)
25
Change in net sales YoY, %
19 % 19 %
13 %
-4 %
-25 %
-31 %-31 %-27 %
-9 %
3 %
9 %
19 % 20 %
16 %
27 %24 %
-40 %
-30 %
-20 %
-10 %
0 %
10 %
20 %
30 %
40 %
Q1
2008
Q2 Q3 Q4 Q1
2009
Q2 Q3 Q4 Q1
2010
Q2 Q3 Q4 Q1
2011
Q2 Q3 Q4
26
24 %
21 % 20 %
35 %
53 %
23 %
0 %
24 % 21 %
17 %
30 %
53 %
27 %
10 %
24 %
21 % 20 %
36 %
64 %
33 %
-2 %
-10 %
0 %
10 %
20 %
30 %
40 %
50 %
60 %
70 %
Group Finland Sweden Norway Denmark East Central
EUR Comparable exchange rates Adjusted for inter-segment sales (in EUR)
Change in Q4 net sales YoY, %
Net sales grew in all segments in local currency
Capital turnover continued to develop positively, 120% at end of 2011
Capital turnover amounted to 120% (105%) at the end of December 2011
27
494
562 581 578
654
708 707
586565 552 544
515 524 508 509 496 508536
588 591
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
Q2 Q3 Q4
Invested capital Net sales/Invested capital, rolling 12 month
MEUR
Invested capital by quarter
Gross margin continued to improve in Q4/2011
Gross margin is impacted by price pressure and increased equipment transportation as well as use of external services and sold equipment
28
Gross margin by quarter
71 % 71 % 71 %
68 %
70 %
71 %
70 %
68 %
65 %
69 %
65 %
67 %
68 %
66 %
67 %67 %
68 %
69 %
66 %
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
Number of employees increased due to acquisitions
At the end of December 2011, the Group’s workforce amounted to 3,184 (3,048) persons
29
603546
503
160
392
824
611 622
523
163
440
868
596630
486
186
439
825
0
100
200
300
400
500
600
700
800
900
1 000
Finland Sweden Norway Denmark Europe East Europe Central
Personnel 31/12/10 Personnel 30/09/11 Personnel 31/12/11
Number of employees by segment
We continue to develop our outlet network –406 outlets as of 31 December 2011
96
83
57
79
37 421
8 225
2 58
99
12
2
359
406
0
50
100
150
200
250
300
350
400
450
Q12008
Q2 Q3 Q4 Q12009
Q2 Q3 Q4 Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4
Finland Sweden Norway Denmark Europe East Europe Central
30
Number of outlets per segment
Fixed cost level increased due to acquisitions
The fixed cost level increased year-on-year due to
• Acquisitions and outsourcing deals (more people and outlets)
• Higher market activity (more outsourced services and intensified sales activities)
• Cost for building common platform
31
Fixed costs by quarter
MEUR
35 30 33 33 33 33 3238 37 37 41 42
2322 19
23 22 23 22
24 27 2525 28
5752 52
57 56 56 54
62 63 6266
70
0
10
20
30
40
50
60
70
80
Q12009
Q2 Q3 Q4 Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4
Employee benefit expenses Other operating expenses
EBIT-margin January-December 2011: 11.4% (5.6%)
Q4 EBIT margin increased from previous year to 13.6%
32
EBIT margin by quarter
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 %
17.0 %
13.6 %
-15 %
-10 %
-5 %
0 %
5 %
10 %
15 %
20 %
25 %
Q12008
Q2 Q3 Q4 Q12009
Q2 Q3 Q4 Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4
Q4 EBIT margin improved in all segments compared to previous year
EBIT in Finland was burdened by a write-down of scaffolding
equipments of EUR 1.4 million
33
7.5 % 8.1 %
18.5 %
0.3 %
-7.8 %
8.5 %
5.1 %
13.6 %14.6 %
22.2 %
10.7 %
5.4 %
14.2 %
10.8 %
-10 %
-5 %
0 %
5 %
10 %
15 %
20 %
25 %
Group Finland Sweden Norway Denmark East Central
Q4 2010 Q4 2011
EBIT-margin by segments
2.04.4
2.16.5 7.5
18.9
8.9
17.4
29.6
38.3
66.8
34.4
3.7 5.0 6.74.7 5.0 3.7 3.3 4.4 3.7
5.2 6.0
11.8
0
10
20
30
40
50
60
70
80
Q12009
Q2 Q3 Q4 Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4
Purchased equipment Sold equipment
34
Q4 2011 rental fleet investments was EUR 34.4 million
Purchased and sold equipment by quarter
MEUR
In October-December 2011, gross capex was EUR 45.9 (18.1) million of which EUR 34.4 (17.4) million in rental fleet. The value of sold rental equipment was EUR 11.8 (4.4) million
In January-December 2011, gross capex was EUR 242.2 (62.0) million of which EUR 169.2 (52.7) million in rental fleet. The value of sold rental equipment was EUR 26.7 (16.4) million
Due to acquisitions capital expenditure increased most in Norway and Sweden
62
1730
111 4 7
242
34
8195
9 12 14
0
50
100
150
200
250
300
Group Finland Sweden Norway Denmark East Central
1-12/2010 1-12/2011
35
Capital Expenditure by segments
MEUR
Working capital is at 4% of net sales
16 15 15 15 15 14 14 16 16 17 17 17
86 88 90 80 83 90 99 97 95109
124 120
-66 -68 -70 -67 -69-86 -86 -89 -82 -84
-107 -109
-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
Q2 Q3 Q4
Inventories Trade and other receivables
Trade payables and other liabilities Working capital/Net sales Rolling 12 month basis
36
Working capital by quarter
MEUR
In October-December 2011, credit losses and net change in the allowance for bad debt totalled EUR -1.3 (-0.3) million
In January-December 2011, credit losses and net change in the allowance for bad debt totalled EUR -4.0 (-3.3) million
-55
-30
25
67
1828 22 20
-4
13 1424
-11-20
-37
16
-80
-60
-40
-20
0
20
40
60
80
Q1 2008
Q2 Q3 Q4 Q1 2009
Q2 Q3 Q4 Q1 2010
Q2 Q3 Q4 Q1 2011
Q2 Q3 Q4
Cash flow after investments
FY 2011 cash flow after investments -52 MEUR,due to increased fleet investments and acquisitions
37
Cash flow after investments
MEUR
96 %
84 %
70 %
69 %
81 %
113 %106 % 108 %
99 %
86 %
74 %
68 %68 %71 %
64 %
56 %60 %
80 %
92 %
81 %
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 Q3 Q4
Net debt Gearing (%)
Net debt decreased by 17 MEUR in Q4/2011; gearing was 81% at year-end
38
Net debt and gearing
MEUR
Equity ratio decreased to 40.7% (48.0%)
Net debt amounted to EUR 262.8 (176.6) million
Board proposes a dividend of EUR 0.28 (0.25) per share for the year 2011
Debt maturity extended
On 4 November 2011, Ramirent Plc's syndicated credit facility agreement totallingEUR 240 million was amended to mature fully in 2017
At end of Q4 2011, Ramirent had unused committed back-up facility of EUR 127.2 million
3939
150
240
0
50
100
150
200
250
300
350
400
450
2012 2013 2014 2015 2016 2017
Committed credit facilities
Repayment schedule of interest-bearing liabilities
MEUR
390 MEUR in committed credit facilities
262.8 MEUR in net debt
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]
40
COMPANY OVERVIEW
41
Ramirent in brief
42
Leading equipment rental company in Northern, Central
and Eastern Europe with net sales of EUR 650 million
(2011)
406 rental customer centers located in 13 countries and
providing 200 000 rental items
Listed on NASDAQ OMX Helsinki since 1998
3 184 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
43
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
44
Our strategic choices
44
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 PFSource: IRN June 2011
45
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
46
Finland24 %
Sweden
28 %Norway
22 %
Denmark
7 %
Europe
East 9 %
Europe
Central11 %
Sales per segment 1-12/2011
Construction
76%
Industry
14 %
Public sector
5 %
Households
5 %
Sales per customer sector 2010
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
47
Ramirent
Loxam
Cramo
Algeco Scotsman
Speedy Hire
Liebherr-Mietpartner
GAM
Mediaco Lifting
Sarens
Kiloutou
HKL Baumschinen
Others
Strong long-term growth drivers
Long-term growing industry
European consolidation opportunities
48
Increasing rental penetration in most markets, still high potential compared to mature UK market
Fragmented European rental market of EUR 20bn with top 10 rental companies accounting for 19% of the market
CEE construction markets on a low level compared to Nordics and Western Europe
*St Petersburg + Moscow onlySource: ERA, Euroconstruct
Inhabitants (million)
Constructionoutput (BEUR)
Increasing rental penetration
High potential CEE construction markets
70
%
60
%
45
%
40
%
40
%
30
%
30
%
25
%
20
%
20
%
15
%
15
%
15
%
10
%
10
%
10
%
5 %
0 %10 %20 %30 %40 %50 %60 %70 %80 %90 %
100 %
Continued demand predicted, especially in non-residential and civil engineering sectors
49Source: Euroconstruct November 2011
-20
-15
-10
-5
0
5
10
15
20
25
2008 2009 2010 2011E 2012F 2013F 2014outlook
% c
han
ge in
re
al t
erm
s (v
olu
me
)
Finland
Residential construction Non-residential construction
Civil engineering Total construction output
-15
-10
-5
0
5
10
15
2008 2009 2010 2011E 2012F 2013F 2014outlook
% c
han
ge in
re
al t
erm
s (v
olu
me
)
Sweden
Residential construction Non-residential construction
Civil engineering Total construction output
-30
-25
-20
-15
-10
-5
0
5
10
15
2008 2009 2010 2011E 2012F 2013F 2014outlook
% c
han
ge in
re
al t
erm
s (v
olu
me
)
Denmark
Residential construction Non-residential construction
Civil engineering Total construction output
-15
-10
-5
0
5
10
15
20
2008 2009 2010 2011E 2012F 2013F 2014outlook
% c
han
ge in
re
al t
erm
s (v
olu
me
)
Norway
Residential construction Non-residential construction
Civil engineering Total construction output
Finland Sweden
Denmark Norway
50
• ROI >18 % p.a. over a business cycle
• EPS growth > 15 % p.a. over a business cycle
• Gearing ≤ 120 % at end of each fiscal year
• Dividend pay-out > 40 % of earnings per share
Financial targets
51
0 %
5 %
10 %
15 %
20 %
25 %
30 %
35 %
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
EBIT margin ROI EBIT margin (average) ROI (average)
23%
18%
EBIT and ROI development
Long-term EBIT and ROI development
APPENDIX
52
CONSOLIDATED INCOME STATEMENT
(EUR 1,000) 10-12/11 10-12/10 1-12/11 1-12/10
Net sales 186 772 150 111 649 861 531 284
Other operating income 541 456 1 526 1 616
Materials and services -62 820 -51 045 -209 357 -177 118
Employee benefit expenses -41 844 -38 170 -156 101 -136 214
Depreciation and amortisation -29 494 -25 625 -107 659 -97 716
Other operating expenses -27 662 -24 478 -104 140 -92 122
EBIT 25 492 11 251 74 131 29 731
Financial income 2 430 3 814 11 405 13 780
Financial expenses -5 174 -6 306 -24 776 -22 658
EBT 22 749 8 760 60 760 20 853
Income taxes -5 691 -1 635 -16 030 -6 212
NET RESULT FOR THE PERIOD 17 058 7 125 44 730 14 640
Net result for the period attributable to:
Owners of the parent company 17 058 7 125 44 730 14 640
Non-controlling interest - - - -
TOTAL 17 058 7 125 44 730 14 640
Earnings per share (EPS), basic and diluted, EUR 0.16 0.07 0.41 0.13
53
BALANCE SHEET – ASSETS
(EUR 1,000) 31.12.2011 31.12.2010
NON-CURRENT ASSETS
Property, plant and equipment 487 310 427 248
Goodwill 124 452 93 211
Other intangible assets 35 719 10 348
Available-for-sale investments 1 368 422
Deferred tax assets 12 183 13 325
NON-CURRENT ASSETS, TOTAL 661 032 544 555
CURRENT ASSETS
Inventories 17 309 15 856
Trade and other receivables 120 000 96 616
Current tax assets 344 2 902
Cash and cash equivalents 2 431 1 352
CURRENT ASSETS, TOTAL 140 084 116 727
TOTAL ASSETS 801 117 661 282
54
(EUR 1,000) 31.12.2011 31.12.2010
EQUITY
Share capital 25 000 25 000
Revaluation fund -4 192 -2 472
Invested unrestricted equity fund 113 329 113 329
Retained earnings 191 862 181 783
PARENT COMPANY SHAREHOLDERS’ EQUITY 326 000 317 640
Non-controlling interests - -
EQUITY, TOTAL 326 000 317 640
NON-CURRENT LIABILITIES
Deferred tax liabilities 73 690 60 413
Pension obligations 7 226 6 866
Provisions 1 553 2 347
Interest-bearing liabilities 219 773 137 384
Other long-term liabilities 11 748 2 200
NON-CURRENT LIABILITIES, TOTAL 313 990 209 209
CURRENT LIABILITIES
Trade payables and other liabilities 109 020 89 480
Provisions 1 163 1 762
Current tax liabilities 5 496 2 658
Interest-bearing liabilities 45 448 40 533
CURRENT LIABILITIES, TOTAL 161 127 134 433
LIABILITIES, TOTAL 475 117 343 642
TOTAL EQUITY AND LIABILITIES 801 117 661 282
BALANCE SHEET – EQUITY AND LIABILITIES
55
KEY FIGURES
MEUR 10-12/11 10-12/10 Change 1-12/11 1-12/10 Change
Net sales 186.8 150.1 24.4% 649.9 531.3 22.3%
EBITDA 55.0 36.9 49.1% 181.8 127.4 42.6%
% of net sales 29.4% 24.6% 28.0% 24.0%
EBIT 25.5 11.3 126.6% 74.1 29.7 149.3%
% of net sales 13.6% 7.5% 11.4% 5.6%Earnings per share (EPS), (basic and diluted), EUR 0.16 0.07 140.3% 0.41 0.13 206.9%
Gross capital expenditure 45.9 18.1 153.6% 242.2 62.0 290.7%Gross capital expenditure,% of net sales 24.6% 12.1% 37.3% 11.7%
Cash flow after investments 15.9 24.2 -34.3% -52.0 48.0 N/AInvested capital at the end of period 591.2 495.6 19.3%Return on invested capital (ROI), % 1) 15.7% 8.6%
Return on equity (ROE), % 1) 13.9% 4.7%
Net debt 262.8 176.6 48.8%
Gearing, % 80.6% 55.6%
Equity ratio, % 40.7% 48.0%
Personnel at end of period 3 184 3 048 4.5%
56
1) The figures are calculated on a rolling twelve month basis.
CONDENSED CASH FLOW STATEMENT
MEUR 10-12/11 10-12/10 1-12/11 1-12/10 Change
Cash flow from operating activities 44.1 39.8 177.4 104.2 70.3%
Cash flow from investing activities -28.2 -15.6 -229.5 -56.2 -308.0%
Cash flow from financing activities
Borrowings / repayment of short-term debt -7.5 -4.2 30.6 0.6 N/A
Borrowings / repayment of long-term debt -9.1 -22.2 52.9 -29.8 277.7%
Purchase of treasury shares - -0.9 -3.4 -2.9 -14.9%
Dividends paid - - -27.0 -16.3 -65.6%
Cash flow from financing activities -16.6 -27.4 53.1 -48.5 209.6%
Net change in cash and cash equivalents -0.8 -3.1 1.1 -0.5 308.8%
Cash and cash equivalents at the beginning of the period 3.2 4.4 1.4 1.8 -24.9%Translation difference on cash and cash equivalents -0.1 0.1 - 0.1 -101.3%
Net change in cash and cash equivalents -0.7 -3.2 1.1 -0.5 308.8%Cash and cash equivalents at the end of the period 2.4 1.4 2.4 1.4 79.8%
57
SEGMENT INFORMATION
Net sales, MEUR 10-12/11 10-12/10 Change 1-12/11 1-12/10 Change
Finland, net sales (external) 42.1 34.8 21.0% 151.4 135.2 12.0%
-Inter-segment sales 0.4 0.5 -12.2% 3.3 1.8 86.9%
Sweden, net sales (external) 53.6 44.8 19.8% 182.0 144.5 25.9%
-Inter-segment sales 0.2 0.2 24.4% 0.6 0.7 -6.9%
Norway, net sales (external) 41.9 30.8 36.2% 144.3 113.7 26.9%
-Inter-segment sales 0.1 0.3 -70.1% 0.5 0.7 -23.4%
Denmark, net sales (external)
14.4 8.7 64.3% 43.5 32.9 32.1%
-Inter-segment sales 0.2 0.8 -72.6% 0.6 2.7 -77.3%
Europe East, net sales (external)
16.4 12.3 33.2% 55.8 39.5 41.3%
-Inter-segment sales 0.1 1.1 -94.9% 0.2 3.2 -93.0%
Europe Central, net sales (external)
18.4 18.7 -1.9% 72.8 65.4 11.3%
-Inter-segment sales 0.6 0.2 168.9% 1.0 1.2 -11.4%
Elimination of sales between segments
-1.6 -3.0 47.6% -6.3 -10.2 37.8%
Net sales, total 186.8 150.1 24.4% 649.9 531.3 22.3%
58
EBIT BY SEGMENT
EBIT (EUR million) 10-12/11 10-12/10 Change 1-12/11 1-12/10 Change
Finland 6.2 2.9 116.6% 22.8 13.7 66.3%
% of net sales 14.6% 8.1% 14.7% 10.0%
Sweden 11.9 8.3 43.9% 33.2 23.3 42.4%
% of net sales 22.2% 18.5% 18.2% 16.1%
Norway 4.5 0.1 N/A 11.2 2.3 378.8%
% of net sales 10.7% 0.3% 7.7% 2.0%
Denmark 0.8 -0.7 206.8% 0.1 -2.2 104.6%
% of net sales 5.4% -7.8% 0.2% -6.2%
Europe East 2.3 1.1 104.6% 5.9 -3.5 266.6%
% of net sales 14.2% 8.5% 10.5% -8.3%
Europe Central 2.0 1.0 111.5% 5.5 0.8 561.9%
% of net sales 10.8% 5.1% 7.4% 1.2%
Net items not allocated to operating segments
-2.3 -1.4 -68.2% -4.5 -4.7 4.1%
Group EBIT 25.5 11.3 126.6% 74.1 29.7 149.3%
% of net sales 13.6% 7.5% 11.4% 5.6%
59
LARGEST SHAREHOLDERS
Largets shareholderson 31 December 2011
Number of shares
% of share
capital
1 Nordstjernan AB 31 882 078 29.33
2 Oy Julius Tallberg Ab 11 962 229 11.01
3 Varma Mutual Pension Insurance Company 7 831 299 7.20
4 Ilmarinen Mutual Pension Insurance Company 5 413 396 4.98
5 Odin Funds 4 546 120 4.18
6 Tapiola Mutual Pension Insurance Company 2 407 668 2.22
7 Veritas Pension Insurance Company Ltd 1 102 687 1.01
8 Investment Fund Aktia Capital 1 094 002 1.01
9 Investment Fund Nordea Suomi 1 000 000 0.92
10 Föreningen Konstsamfundet rf 825 000 0.76
Ramirent’s treasury shares 680 192 0.63
Nominee registered shares 17 698 869 16.28
Other shareholders 22 253 788 20.47
Total number of shares 108 697 328 100.00
60
34.7 %
16.2 %40.2 %
8.8 %
Foreign owners
Nominee registered
Finnish companies and organisations
Finnish households
Market Cap EUR 594.1 million
Trading informationListing: NASDAX OMX HelsinkiDate of listing: April 30, 1998
Segment: Mid CapSector: Industrials
Trading code: RMR1V
Share price development
EUR
61
MEUR
50
100
150
200
250
300
0
20
40
60
80
100
120
140
160
180
Osakevaihdon arvo Ramirent Toimiala OMX Helsinki Share turnover Sector
12.42
14.90
17.39
19.87
9.94
7.45
4.97
2.48
22.36
Thank you!