finland and balticsinvestors.ramirent.com/sites/default/files/cmd/cmd2013_evp_anna... · 1-9/2013...
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FINLAND AND BALTICS
CAPITAL MARKETS DAY 2013 Anna Hyvönen, EVP, Finland and Baltics
28%
Largest equipment rental company in Finland Most extensive range of product and services Widest customer centre network Strong expertise in industrial projects
Profile
2
24%
Share of Group net sales (%) 1-9/2013
Share of Group EBIT (%) 1-9/2013
Highlights Q3/2013
Demand was steady in Southern and Central Finland Market activity weakened in Northern and Western Finland Strong EBIT margin due to strict cost control Ramirent defended price levels in tough environment Capacity utilisation was on a healthy level
Outsourcing deal with Caverion:
• 5-year rental agreement with annual sales of appx. MEUR 5
• 19 employees moved to Ramirent
Ramirent is the market leader in Finland
Well-positioned for a market upturn
154 134 137
155 167
113
0246810121416182022
020406080
100120140160180
2008 2009 2010 2011 2012 1-92013
Profitability has improved since the financial crises
3
Capital expenditure, MEUR
Capital expenditure, MEUR
Financial highlights 2008-2013 Leading market position maintained throughout the cycle
Reduced operative risk
Better product mix and flexibility in resourcing Divestments of formworks and partnering for scaffolding installations
Average EBIT margin of 14.7% Reduction in personnel from 704 to 533 Optimisation of customer centre network
MEUR (%)
Net sales and EBIT-margin
29
13 17
34
26 22
05
10152025303540
2008 2009 2010 2011 2012 1-92013
Several actions to improve margins underway
1,40% 1,45% 1,45% 1,40% 1,40% 1,40%
0%
1%
2%
3%
4%
2010 2011 2012 2013E 2014E 2015E
VTT expects rental market to grow by 3% in 2014 supported by new construction start-ups and renovation Equipment rental increasing in the industrial sector Companies interested in outsourcing to minimise assets and free up capital Rental penetration highest in access equipment; lowest in heavy and light machinery
Equipment rental market, MEUR1) Key market dynamics and trends
Market structure (2012)
4
538 587 595 580 599
0
100
200
300
400
500
600
700
2010 2011 2012 2013E 2014E
MED
IUM
LO
W
HIG
H
Ramirent
Cramo
Pekkaniska
Telinekataja
HRK
Others
Positive signs for equipment rental market
1) VTT in November 2013 2) Source: European Rental Association 2013; Rental Turnover* / Total construction output *Equipment rental companies turnover, including rental-related revenues, merchandise as well as sales of used equipment. For other companies providing rental services as a secondary business, estimates for their share of turnover generated by rental activities have been applied.
Finnish market expected to recover in 2014
Rental penetration rate (%) 2)
5
Key growth areas
Shipyards and shipbuilding
Windpower
Industry
Construction 52%
Industrial 25%
Services &
Retail 16%
Public 2% Private 4%
Various growth pockets for Ramirent in Finland
Sales by customer sector 1-9/2013
Construction
Private
HUB
Customer centre
Focus areas Key initiatives Targets
6
Sustainable profitable
growth
Employee emphasis
Operational quality, safety and efficiency
Best-in-class customer experience – building the service culture Customer proximity Improve customer understanding Customer driven solutions
Deliver value for money Easy to do business with Clear value proposition Differentiating from competition
Building a culture that engages and empowers our people Attracting talent Wellbeing and safety in our working environment
Positive working environment Rewarding career opportunities Diversity Strong image as good employer
Sustainability Improving safety at work Optimise fleet management and fleet operations
Reduce CO2 emission Reduce accident frequency rate Flexibility in operations
Targeting growth and EBITA margin of at least 18%
Strategic focus areas for 2014-2016
7
Construction of Tower Hotel in city centre of Tampere, Finland
Ramirent's offer • Tower crane, Access and
Safety equipment • Electrification and energy
efficient lighting system • Scaffolding & Weather covers • Humidity and dust control • Light machinery • Work site services
Customer Benefits • One-stop-shop for all equipment
and services needed • Dedicated single point of contact • High quality, safety and ecology
standards • 24/7 equipment support • Knowhow of large projects
On-time delivery – no space for storage
Raising tallest hotel in Finland with Ramirent TotalSolveTM
Tower hotel, SRV
BALTICS – PART OF EUROPE EAST CAPITAL MARKETS DAY 2013 Anna Hyvönen, EVP, Finland and Baltics
22%
Ramirent has a strong presence and network in the Baltic countries
The three Baltic countries were integrated under joint management Resources and network optimisation Profitability has improved considerably after the financial crisis Net sales below peak cycle levels
Second largest equipment rental company in the Baltic States; #2 in Estonia, #1 in Lithuania, #1 in Latvia Easy customer accessibility through 41 customer centers Broad range of products and services Baltics is reported in the Europe East segment
Profile
9
6%
Share of Group net sales (%) 1-9/2013
Share of Group EBIT (%) 1-9/2013
Highlights Q3/2013
*EBIT excluding the capital gain of EUR 10.1 million from the formation of Fortrent was EUR 4.5 (5.9) million or 16.1% (12.9%) of net sales. Europe East share of Group EBIT excluding the capital gain was 6.6% in 1-9/2013.
Demand for equipment rental remained at good level in the Baltic States EBIT strengthened due to improved capacity utilisation in the Baltics Fixed costs under control and price levels steady
Improved profitability based on market recovery
Highlights 2008-2013
Europe East adj. 6.6%*
Rental penetration is lower than in the Nordics Potential outsourcings cases in the market Growth potential in infrastructure and services sector Construction output in the Baltic countries expected at same levels in 2014 compared to 2013
Equipment rental market*, MEUR Key market dynamics and trends
Market structure (2012)
10 Source: Euroconstruct 6/2013 and *financial statements & annual reports of Baltic equipment rental companies
Construction output in the Baltics, MEUR
0
2000
4000
6000
8000
Estonia
Latvia
Lithuania
Ramirent
Cramo
Peri
Storent
Others
Baltic equipment rental market has lower penetration than the Nordic countries
185
115 95
109 127
0
50
100
150
200
2008 2009 2010 2011 2012
Market recovery expected to continue
Infrastructure construction and energy sector main growth pockets in the Baltics
HUB
Customer centre
11
Key growth areas
Energy
Construction 59%
Industrial 12%
Services & Retail 24%
Public 2% Private 4%
Service & retail
Infrastructure construction
Sales by customer sector 1-9/2013
Residential construction
Focus areas Key initiatives Targets
12
Sustainable profitable
growth
Operational excellence
To grow in building renovation and industrial customer segments Customer driven product and service offering Professional customer management
Develop customer centre network Shortening of repair times and reducing non-available fleet Improve logistics and profitability of services
Optimal customer center locations
Maintain strict cost control
Targeting growth and EBITA margin of at least 18%
Strategic focus areas for 2014-2016
Growing the share of industry and building renovation in customer portfolio
Optimal product & service portfolio balances investments and reduces cost and capital
13
Industrial project: VKG Oil Plant, Kohtla-Järve, Estonia
Ramirent's offer • Design, consultancy,
installations • On-site temporary outlet • Access equipment • Heavy equipment • Site modules • Scaffolding • Formworks
Customer Benefits • One main provider for all
equipment • Savings in cost from on-site
access to machines • Ramirent knowhow of
equipment suitable for energy projects
On-site temporary outlet for quick response times
Ramirent TotalSolveTM for Oil plant in Estonia
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Winning the customer every day Making things easy for the customer providing high quality service at every stage Finding the most suitable solution for the customer need Providing best-in-class customer experience
Customer first – Ramirent service culture
Q&A