ramirent interim report q1_2013
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TRANSCRIPT
INTERIM REPORT Q1/2013 May 8, 2013 CEO Magnus Rosén CFO Jonas Söderkvist
Agenda
Highlights: Q1/2013
Market outlook
Segment review Financial Review Company overview
Appendix
2 Agenda
3
Highlights: Q1/2013
Net sales MEUR 152.8 (164.3) down by 7.0% or 8.7% at comparable exchange rates. Sales decrease excluding operations in Russia and Ukraine for March 2012 was 5.6%. EBITA MEUR 22.6 (14.4) or 14.8% (8.7%) of net sales EBITA excluding non-recurring items EUR 12.4 or 8.1% of net sales EBIT EUR 18.0 (12.3) million or 11.8% (7.5%) of net sales EBIT excluding non-recurring items was EUR 10.7 million or 7.0% of net sales
Highlights: Q1/2013
4
Highlights: Q1/2013
Gross capex MEUR 32.4 (35.7) down by 9.3% Cash flow after investments MEUR 19.0 (6.4), up 197% Net debt MEUR 220.3 (257.7) Net debt to EBITDA ratio 1.0x (1.2x) Return on equity (ROE) 20.7% (16.9%) Equity ratio 38.2% (37.6%)
Highlights: Q1/2013
5
Quarterly net sales Q1/2010 – Q1/2013 (MEUR)
Net sales decreased by 7.0% in Q1/2013
111.5
128.7 140.9
150.1
134.4
149.5
179.2 186.8
164.3 169.7
185.9 194.1
152.8
0
50
100
150
200
250
Q1 Q2 Q3 Q4
2010 2011 2012 2013
Highlights: Q1/2013
Net sales decreased by 8.7% at comparable exchange rates
Comparable net sales decreased by 5.6% (adjusted for the operations in Russia and Ukraine)
6
Quarterly EBIT-margin (%) Q1/2010 – Q1/2013
Profitability excluding non-recurring items was close to last year's level
-5.0%
5.8%
11.8%
7.5%
2.0%
10.3%
17.0%
13.6%
7.5%
13.3%
16.0%
14.3%
11.8%
-10%
-5%
0%
5%
10%
15%
20%
Q1 Q2 Q3 Q4
2010 2011 2012 2013
Highlights: Q1/2013
EBIT margin excl. non-recurring
items 7.0%
7
5.0
6.5
3.9
-0.2 -0.1
-2.2
3.1
6.7
4.3
-1.5
11.0
-5.2 -6
-4
-2
0
2
4
6
8
10
12
EBIT MEUR Q1/2013 vs. Q1/2012
Profitability continued to improve in Norway and Europe East
12.9% 13.5%
8.9%
-2.1% -0.6%
-16.8%
8.8%
13.3% 11.4%
-16.0%
113.1%
-30%
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
EBIT margin, % Q1/2013 vs. Q1/2012
Highlights: Q1/2013
Europe East EBIT excluding capital gain from the transaction to form a JV with Cramo in Russia and Ukraine was EUR 0.9 million, representing 8.8% of net sales Europe Central EBIT excluding impairment loss at the Hungarian goodwill was EUR −2.3 million, representing −21.2% of net sales
-47.5%
Q1/2012 Q1/2013 Q1/2012 Q1/2013
Long-term financial targets were met in Q1/2013
8
Leverage and risk
Profit generation
Dividend
Element Target level
ROE
Net Debt / EBITDA
ratio
Dividend pay-out
ratio
18% p.a. over a business cycle
Below 1.6x at the end of each fiscal year
At least 40% of Net profit
Measure 1–3/2013
20.7%
1.0x
57.6%* of 2012 net profit *Paid for 2012
Highlights: Q1/2013
MARKET OUTLOOK
9
Market outlook –Construction output forecasts
10
Country 2012 2013F Source
Nordic Finland −2.3% −3.0% RT* Sweden −2.4% −1.0% BI** Norway 5.2% 5.8% Prognoscentret Denmark −3.4% −1.4% DB***
Europe Central Poland 1.6% −3.4% Euroconstruct Czech Republic −5.4% −1.9% Euroconstruct Slovakia −13.3% −1.0% Euroconstruct Hungary −9.0% 0.9% Euroconstruct
Europe East Russia 3.0% 0-5% Euroconstruct Estonia 23.0% 2.0% Euroconstruct Latvia 8.0% 4.0% Euroconstruct Lithuania 1.0% 3.0% Euroconstruct Ukraine n.a. n.a. Euroconstruct
Euroconstruct forecasts in December 2012 *RT = Confederation of Finnish Construction Industries **BI = The Swedish Construction Federation ***DB = The Danish Construction Federation
Market outlook
Residential construction expected to increase in Norway
11
Source: Euroconstruct December 2012
Residential construction (output) 2008A – 2014F
Index 2008 = 100 (volume) 109
94
120
91 88
70
75
80
85
90
95
100
105
110
115
120
2008 2009 2010 2011 2012E 2013F 2014F
Finland Sweden Norway Denmark Europe Central
Forecasts for Europe East countries not available
Market outlook
Non–residential construction forecasted to remain stable
12
Non–residential construction (output) 2008A – 2014F
Index 2008 = 100 (volume)
80
94
104
71
96
60
70
80
90
100
110
120
2008 2009 2010 2011 2012E 2013F 2014F
Finland Sweden Norway Denmark Europe Central
Source: Euroconstruct December 2012 Forecasts for Europe East countries not available
Market outlook
13 Market outlook
-40%
-20%
0%
20%
40%
60%
0
2
4
6
8
10
12
14
16
Q12007
Q2 Q3 Q4 Q12008
Q2 Q3 Q4 Q12009
Q2 Q3 Q4 Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Order books: Nordic construction companies (BEUR, fixed exchange rates)
Skanska NCC
Veidekke YIT
SRV Change in Net sales YoY, R12 Ramirent
Change in order backlog YoY, Nordic construction
Nordic construction order books decreased 4.7% in Q1/2013
A decrease of 4.7% in Q1/13 vs. Q1/12 in construction company order books (excluding Peab and Lemminkäinen) for SE, FI, NO and DK.
Ramirent outlook for 2013
14
In 2013, EBITA is expected to remain at the level of 2012
Market outlook
15
Strategic priorities 2013
Customer first
Sustainable profitable growth Common Ramirent platform
Balanced business portfolio
• Strong customer-centric approach with increased focus on sustainability, safety and quality
• Being the leading and most profitable general rental company where present
• Developing a one-company
structure with operational consistency
• Maintain a balanced portfolio
of customers, products and markets to balance risk
SEGMENT REVIEW
16
28
36 38 35 30
37
45 42 38 41
45 42
35
-5%
0%
5%
10%
15%
20%
25%
30%
05
101520253035404550
Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Net sales EBIT-%
Finland
Net sales in comparison period included large industrial projects that are now completed Demand on equipment rental weakened slightly in construction sector mainly due to prolonged winter Pressure on pricing increased Low activity in Northern Finland
17
Highlights Q1/2013 Sales and EBIT by quarter
Finland Q1 2013
Q1 2012
Change (EUR)
Change (Local)
1–12/ 2012
Net sales, MEUR 35.1 38.4 −9% 166.5
EBIT, MEUR 3.1 5.0 −37% 30.2
EBIT–margin 8.8% 12.9% 18.2%
Employees 557 579 −4% 572 Customer centres 76 84 −10% 76
Segment review
18
Demand of equipment rental remained stable Stable activity in capital region Lack of big construction projects in Southern Sweden Good demand in industrial sector in Central and Northern Sweden Profitability remained on last year’s level thanks to cost control and good utilisation rates
29 35 36
45 41 42 45 54
48 51 53 58
50
0%
5%
10%
15%
20%
25%
0
10
20
30
40
50
60
70
Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Net sales EBIT-%
Sales and EBIT by quarter
Segment review
Highlights Q1/2013
Sweden Q1 2013
Q1 2012
Change (EUR)
Change (Local)
1–12/ 2012
Net sales, MEUR 50.3 48.1 4% 0% 209.9
EBIT, MEUR 6.7 6.5 3% 33.3
EBIT–margin 13.3% 13.5% 15.9%
Employees 677 675 0% 677 Customer centres 78 84 −7% 79
Sweden
Norway
19
Net sales declined mainly due to less trading of used equipment Good demand in oil & gas sector Profitability improved thanks to better operational efficiency and cost control Price level remained stable
28 27 28 31 33 30
40 42 44 38 41
51
38
-4%-2%0%2%4%6%8%10%12%14%16%18%
0
10
20
30
40
50
60
Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Net sales EBIT-%
Sales and EBIT by quarter
Segment review
Highlights Q1/2013
Norway Q1 2013
Q1 2012
Change (EUR)
Change (Local)
1–12/ 2012
Net sales, MEUR 38.1 43.7 −13% −15% 174.0
EBIT, MEUR 4.3 3.9 11% 22.2
EBIT–margin 11.4% 8.9% 12.8%
Employees 472 477 −1% 467 Customer centres 43 43 0% 42
20
Weak activity in the construction sector affected on the demand of equipment rental Profitability was burdened by lower utilisation rates Price level remained stable
8 9 9 10
8 10
11
15
10 11 11 12
9
-20%
-15%
-10%
-5%
0%
5%
10%
02468
10121416
Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Net sales EBIT-%
Sales and EBIT by quarter
Segment review
Highlights Q1/2013
Denmark Q1 2013
Q1 2012
Change (EUR)
Change (Local)
1–12/ 2012
Net sales, MEUR 9.1 9.8 −8% −7% 44.7
EBIT, MEUR −1.5 −0.2 n/a 1.6
EBIT–margin −16.0% −2.1% 3.6%
Employees 192 178 8% 192 Customer centres 19 22 −14% 19
Denmark
21
Activity in construction sector remained relatively stable in the Baltic States EBIT* includes a non-taxable capital gain of EUR 10.1 million from the formation of Fortrent EBIT-margin excl. capital gain improved thanks to good cost control and higher utilisation rates
8 10
12 13
9
13
17 16
12
15
19 17
10
-40%-30%-20%-10%0%10%20%30%40%50%60%
02468
101214161820
Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Net sales EBIT-%
Sales and EBIT by quarter
Segment review
Highlights Q1/2013
(113%)
*Europe East EBIT excluding the capital gain was EUR 0.9 million or 8.8% of net sales
Europe East Q1 2013
Q1 2012
Change (EUR)
Change (Local)
1–12/ 2012
Net sales, MEUR 9.7 12.2 −20% −20% 66.3
EBIT, MEUR 11.0* −0.1 n/a 10.9
EBIT–margin 113.1% −0.6% 17.3%
Employees 207 428 −52% 443 Customer centres 42 58 −28% 62
Europe East
Group
Successful closing of transaction to form the JV Fortrent in Russia and Ukraine
Group
Forces combined in Growing Markets… …Created Strong Stand–Alone Company "Fortrent"
“50/50 JV”
50% 50%
Key Figures (1 March 2013–31 March 2013) RUSSIA
UKRAINE
Net sales in March increased by 5.0% to MEUR 4.2 (4.0) EBITA was MEUR −0.2 (0.2) or −4.8% (5.1%) of net sales, and net profit for the period was MEUR −0.3 400 employees and 22 customer centres
22 Segment review
Fortrent started its operations on 1 March 2013 From beginning of March Fortrent’s net sales is not included in Ramirent Group’s net sales. Ramirent’s share (50%) of the net profit will be included in the operating profit of the Europe East segment in accordance with the equity method of accounting. Ramirent’s net sales in Russia and Ukraine totalled EUR 33.6 million in 2012. EBIT amounted to EUR 5.6 million representing a margin of 16.7%
On 7 March, 2013 Ramirent and Cramo announced that they received approval from competition authorities and successfully closed the transaction to form a joint venture operating under the brand name “Fortrent” in Russia and Ukraine.
23
Demand was weak in all countries Market situation weakened in the construction sector especially in Poland Profitability was burdened by low volumes and utilisation rates High price pressure Further reduction in number of employees and customer centres
12
16
20 19
14
19 22
19
13 15
18 16
11
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
0
5
10
15
20
25
Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Net sales EBIT-%
Sales and EBIT by quarter
Segment review
Highlights Q1/2013
Europe Central EBIT excluding EUR 2.9 million impairment loss in the Hungarian goodwill was EUR −2.3 million, representing −21.2% of net sales
Europe Central Q1 2013
Q1 2012
Change (EUR)
Change (Local)
1–12/ 2012
Net sales, MEUR 11.0 13.3 −17% −18% 62.7
EBIT, MEUR −5.2 −2.2 n/a −1.6
EBIT–margin −47.5% −16.8% −2.5%
Employees 613 726 −16% 626 Customer centres 76 103 −26% 80
Europe Central
FINANCIAL REVIEW
24
Good cash flow and strong financial position
25
Net Sales (MEUR) EBITDA (MEUR)
Cash flow (MEUR) Net debt (MEUR) Gross Capex (MEUR)
EBITA (MEUR)
13 22
10 18
32 45
120
46 36
24 28 37 32
0%10%20%30%40%50%60%70%80%
0
20
40
60
80
100
120
140
Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Gross Capex Share of net sales-%
212 209 197 177 191
238
280 263 258
281 256
239 220
0%10%20%30%40%50%60%70%80%90%100%
0
50
100
150
200
250
300
Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Net debt Gearing-%
-5
8
17 13
4
17
32 27
14
25
32 30
23
-10%
-5%
0%
5%
10%
15%
20%
-10-505
101520253035
Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
EBITA EBITA-%
18
31
42 37
28
41
59 55
42
52 60 57
48
0%
5%
10%
15%
20%
25%
30%
35%
0
10
20
30
40
50
60
70
Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
EBITDA EBITDA-%
112 129 141 150
134 150
179 187 164 170
186 194
153
-15%-10%-5%0%5%10%15%20%25%30%
0
50
100
150
200
250
Q12010
Q2Q3Q4Q12011
Q2Q3Q4Q12012
Q2Q3Q4Q12013
Net sales Y-o-y change-%
-4
13 14
24
-11
-20
-37
16
6 7
24 17 19
-40
-30
-20
-10
0
10
20
30
Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Financial review
Non-recurring items in Q1/2013: Capital gain of EUR 10.1 million booked from the transaction to form Fortrent as well as an impairment loss of EUR 2.9 million in the Hungarian goodwill EBITA excluding non-recurring items was EUR 12.4 million, representing 8.1% of net sales
Net sales decreased by 7.0% in Q1/2013
26
112
129 141
150
134
150
179 187
164 170
186 194
153
0
20
40
60
80
100
120
140
160
180
200
220
Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Net sales (MEUR) Q1/2010 – Q1/2013
1-12/2010: 531.3
Financial review
Net sales decreased by 8.7% at comparable exchange rates Comparable net sales decreased by 5.6% (adjusted for the formation of JV in Russia and Ukraine)
1-12/2011: 649.9 1-12/2012: 714.0
27
Net sales by segment (MEUR) and Change % (YoY)
−8.6% −12.9% −16.9% −20.2% −7.7% 4.4%
38.4
48.1 43.7
9.8 12.2 13.3
35.1
50.3
38.1
9.1 9.7 11.0
0
10
20
30
40
50
60
Finland Sweden Norway Denmark Europe East EuropeCentral
Q1/2012 Q1/2013
Net sales decreased in all segments except Sweden
Financial review
Share of rental income increased in Q1/2013
Q1/2012 compared to Q1/2013: • Rental income decreased by 4.0% • Ancillary income decreased by 7.7% • Income from sold equipment declined by 42.7%
28
63% 65%
33% 32%
4% 3%
0 %
20 %
40 %
60 %
80 %
100 %
Q1/2012 Q1/2013
Income from sold equipment
Ancillary income
Rental income
Breakdown of net sales (%) and MEUR
103.1 98.9
53.8 49.6
7.5 4.3
0
50
100
150
200
Q1/2012 Q1/2013
Income from sold equipment
Ancillary income
Rental income
Financial review
Gross margin improved slightly from the previous year
29
Gross margin (%) by quarter
65%
67%
68%
66%
67% 67% 68%
69%
66%
68%
66%
68% 69%
64%
67% 67%
Q1 Q2 Q3 Q4 FY
2010 2011 2012 2013
Financial review
Number of employees decreased due to scaling down of operations in Europe Central
At the end of March 2013, the Group’s number of employees was 2,751 (3,086) At the end of 2012, number of employees in Russia and Ukraine was 238
30
Number of employees by segment
579
675
477
178
428
726
572
677
467
192
443
626 557
677
472
192 207
613
Finland Sweden Norway Denmark Europe East EuropeCentral
Personnel 31/3/12 Personnel 31/12/12 Personnel 31/3/13
Financial review
Optimisation of customer centres continues, 334 customer centres at the end of March
Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Finland Sweden Norway Denmark Europe East Europe Central
Number of customer centres per segment
31 Financial review
334 353
At the end of 2012, number of customer centres in Russia and Ukraine was 19
Fixed costs decreased thanks to cost control throughout the Group
Group fixed costs MEUR 66 (68) in 1-3/2013
32
Fixed costs by quarter (MEUR)
Financial review
33 33 32 38 37 37 41 42 42 40 42 42 42
22 23 22 24 27 25
25 28 25 25 26 27 24 56 56 54
62 63 62 66
70 68 65 68 69
66
Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Employee benefit expenses Other operating expenses
EUR 22.6 million EBITA including non-recurring items in Q1/2013
33
-5.1
8.0
17.4
12.7
3.6
16.5
32.0
27.3
14.4
24.7
31.8 29.7
22.6
-10%
-5%
0%
5%
10%
15%
20%
-10
-5
0
5
10
15
20
25
30
35
Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
EBITA EBITA-%
EBITA (MEUR) and EBITA-margin (%) Q1/2010 – Q1/2013
1-12/2010: 33.0 1-12/2011: 79.4 1-12/2012: 100.6
Non-recurring items in Q1/2013: Capital gain of EUR 10.1 million booked from the transaction to form Fortrent EBITA excluding non-recurring items was EUR 12.4 million, representing 8.1% of net sales
Financial review
EUR 7.2 million non-recurring items in Q1/2013
Reported EBIT was EUR 18.0 (12.3) million or 11.8% (7.5%) of net sales Non-recurring items in Q1/2013: Capital gain of EUR 10.1 million booked from the transaction to form Fortrent as well as an impairment loss of EUR 2.9 million in the Hungarian goodwill EBIT excluding non-recurring items was EUR 10.7 million, representing 7.0% of net sales
34
EBIT (MEUR) Q1/12 vs Q1/13
12,3
18,0
10,1
2,9
10,7
02468
101214161820
Q1/2012reported
Q1/2013reported
Capital gain Goodwillimpairment
Q1/2013adjusted
Financial review
Profitability improved in Norway and Europe East
35
12.9% 13.5% 8.9%
-2.1% -0.6%
-16.8%
8.8% 13.3% 11.4%
-16.0%
(113.1%)
(-47.5%)
8.8%*
-21.2%*
Finland Sweden Norway Denmark East Central
Q1/12 Q1/13
EBIT–margin (%) by segments
Financial review
*EBIT-margin excluding non-recurring items
Exc. non-recurring items
Ramirent is still cautious with capital expenditure
The total value of purchased equipment was 29.3 (20.3) million in 1-3/2013 The value of sold rental equipment was EUR 4.3 (7.5) million in 1-3/2013
36
Purchased and sold equipment by quarter (MEUR)
Financial review
8
19
9
17
30
38
67
34
20 22 25
34 29
5 4 3 4 4 5 6 12
8 6 6 8 4
Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Purchased equipment Sold equipment
Capital expenditure slightly lower level than in previous year
No acquisitions were made during the quarter
37
4
25
2 0
2 2
8
11 9
1 2 1
Finland Sweden Norway Denmark East Central
1–3/2012 1–3/2013
Capital Expenditure by segments (MEUR)
Financial review
Positive development in working capital
Q1/2013 credit losses and net change in the allowance for bad debt totalled EUR −1.9 (−1.9) million Dividend of EUR 36.6 million paid in April
38
15 14 14 16 16 17 17 17 18 18 20 15 15
83
90
99
97
95
10
9
12
4
12
0
11
4
13
1
14
1
13
6
11
5
-69
-86
-86
-89
-82
-84
-10
7
-10
9
-13
9
-11
2
-12
2
-11
3
-14
3
-6%
-4%
-2%
0%
2%
4%
6%
8%
-120
-80
-40
0
40
80
120
160
Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Trade payables and other liabilitiesTrade and other receivablesInventoriesWorking capital/Net sales Rolling 12 month basis
Working capital by quarter (MEUR)
Financial review
Return on investment remained stable in Q1/2013
39
Invested capital (MEUR) and ROI (%) rolling 12 months
524 508 509 496 508 536
588 591 565 602 605 604
654
0%
5%
10%
15%
20%
25%
0
100
200
300
400
500
600
700
Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Invested capital ROI % (R12)
Return on invested capital, ROI 18.9% (19.6%) 1-3/2013
Financial review
Cash flow after investments increased to 19.0 MEUR in the first quarter
40
Cash flow after investments (MEUR)
Financial review
−4.0
13.4 14.4 24.2
−10.7 −20.4
−36.8
15.9 6.4 7.3
23.7 16.8 19.0
Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Cash flow after investments Cash flow after investments, Rolling 12 months
1-12/2010: 48.0 1-12/2011: −52.0 1-12/2012: 54.2
212 209 197
177 191
238
280 263 258
281 256
239 220
1.8x 1.9x 1.7x
1.4x 1.4x
1.6x 1.7x
1.4x
1.2x 1.4x
1.2x 1.1x
1.0x
0
1
2
3
0
50
100
150
200
250
300
Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Net debt Net debt to EBITDA ratio
Financial position continued to strengthen in Q1/2013
Net debt to EBITDA 1.0x (1.2x) at the end of March 2013
41
Net debt (MEUR) and Net debt to EBITDA ratio
Financial review
Ramirent issued a EUR 100 million bond in March 2013
42
On 14 March 2013, Ramirent issued a EUR 100 million senior unsecured bond The six-year bond matures on 21 March 2019 and carries a fixed annual interest at the rate of 4.375 per cent The bond offering was oversubscribed significantly and allocated to approximately 60 investors The bond issue extends the maturity profile of Ramirent’s debt portfolio and diversifies the financing base
The proceeds from the bond offering will be used for general corporate purposes
Financial review
At end of March 2013, Ramirent had unused committed back–up loan facilities of EUR 266.3 million
In addition to bank facilities, Ramirent is utilising a domestic commercial paper program of up to EUR 150 million
43
Repayment schedule of interest–bearing liabilities (MEUR)
Financial review
150
240
100
2013 2014 2015 2016 2017 2018 2019
220 MEUR in net debt
490 MEUR in committed credit facilities
Return on equity improved and was 20.7% in the first quarter
44
309 296 308 318 316 296 305
326 305 319
347 364
342
-5%
0%
5%
10%
15%
20%
25%
0
50
100
150
200
250
300
350
400
Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Total equity ROE % (R12)
Total equity (MEUR) and ROE (%) rolling 12 months
Return on equity, ROE 20.7% (16.9%) 1-3/2013
Financial review
For more information: www.ramirent.com Magnus Rosén, CEO +358 20 750 2845 [email protected] Jonas Söderkvist, CFO +358 20 750 3248 [email protected] Franciska Janzon, IR +358 20 750 2859 [email protected]
COMPANY OVERVIEW
46
Ramirent in brief
47
Leading equipment rental company in Northern, Central and Eastern Europe with net sales of EUR 714 million (2012)
Presence in 11 countries through 334 customer centers and in two countries through joint venture
Listed on NASDAQ OMX Helsinki since 1998
2,751 employees serving 200,000 customers with 200,000 rental items
Founded in 1955 and headquartered in Finland
Company overview
Ramirent operates in Europe with Baltic Sea region being the core market
48
Sales per segment 1-12/2012 Wide network of customer centres and leading market position
Finland 23%
Sweden 29%
Norway 24%
Denmark 6%
Europe East 9%
Europe Central
9%
Sales per customer 1-12/2012
Construc- tion 68%
Services &Retail 10%
Industrial 15%
Private 3% Public
4%
Target is to increase sales to non-construction customers to 40% of the Group's net sales
Finland 76 customer
centres # 1
Europe
East 43 customer
centres # 1
Norway
42 customer centres
# 1
Denmark 19 customer
centres # 1
Europe Central
80 customer centres
# 1
Sweden
79 customer centres
# 2
Company overview
JV with Cramo (22 customer centres)
Targeting a wider range of customer industries in all countries
Shipyards
Construction
Households Aviation Power
Oil and gas
Public
Windpower
49 © 2013 Ramirent
End of 2009
We accelerate our growth through acquisitions and outsourcing cases
50
Outsourcing deal in Denmark
Outsourcing deal in Finland Acquisition of
Finnish weather protection rental
company
Outsourcing deal with two subsidiaries in Finland
Outsourcing deal in Finland
Active screening of acquisition targets
Acquisition of Swedish rental company
Outsourcing deal in Norway
Acquisition of Czech rental
business
Aquisition of Czech rental
business
Acquisition of Czech rental
business
Acquisition of Swedish rental
company
Acquisition of Danish rental
business
Acquisition of specialist module rental company in
Norway
Danish scaffolding
division
Acquisition of Swedish rental
company
Acquisition of Swedish rental
company
2010
2011 2012
Outsourcing deal in Norway
Closing of the JV with Cramo in Russia
and Ukraine New brand name:
Fortrent
2013
Company overview
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
51
Our strategic choices
Values Open, Progressive, Engaged
Brand promise Let’s solve it
Broadest range of equipment and Dynamic Rental SolutionsTM
52
RA
MIR
ENT
OFF
ERIN
G
CUSTOMER NEEDS
PRODUCTS
• Light machinery • Heavy machinery • Lifts • Power and heating
• Modules • Tower cranes and hoists • Scaffolding • SAFE
SERVICES
• Planning • Business Support • On-Site Support • Merchandise Sales • Rental Insurance • Training
SOLUTIONS
• SpaceSolve • SafeSolve • AccessSolve • EcoSolve
• PowerSolve • ClimateSolve • TotalSolve
Benefits: Lighter balance sheets, less investments
Benefits: More uptime in core operations due to less downtime in equipment, less maintenance costs, right choice of equipment improves efficiency, less product liability risk
Benefits: Easy to buy, reduced number of subcontractors, increased focus on the core business
OUTSOURCING Benefits: By outsourcing their machine fleet to Ramirent, companies can increase efficiency and simplify their business by focusing on core competences INDUSTRIES
• Construction • Mining • Paper • Power generation • Oil & gas • Shipyards • Retail and Service • Public sector • Households
Company overview
Ramirent developed its solutions concepts further
53 Company overview
Weak Stable Strong
Strategic themes Customer First
Sustainable profitable growth Operational Excellence
Balanced portfolio of customers, products and markets
Operational themes
• Safe-guard profitability and cash flow
• Consolidate market – Outsourcing cases
• Pricing discipline • Execute contingency plans • Reduce costs and transform
fixed costs to variable • Reduce financial risk, focus
on A/R and credits • Amortise debt • Limited capex, transfer fleet
to where demand is
• Realise synergies through operational excellence
• Consolidate market – Bolt-on acquisitions
• Maintenance capex
• Profitable growth • Drive penetration and
capture growth opportunities
• Keep control of fixed cost base
• Prepare contingency plans
• Growth capex for expansion
Business cycle
Counter cyclical cash flow
Market conditions
54
Weak market conditions in 2009-2010
Increased demand and investments
2011-2012
Our strategic and operational themes through the business cycles
Company overview
55
Organic growth drivers 7
0%
60
%
45
%
40
%
40
%
30
%
30
%
25
%
20
%
20
%
15
%
15
%
10
%
10
%
10
%
0%
20%
40%
60%
80%
100%
Increasing rental penetration
Expansion in select customer industries
RamirentLoxamCramoAlgeco ScotsmanSpeedy HireLiebherr-MietpartnerGAMMediaco LiftingSarensKiloutouHKL BaumschinenOthers
Consolidation opportunities in Europe
External growth drivers M&A activity
Outsourcing deals
Bolt-on and selected strategic acquisitions
Joint Ventures
Good organic and strategic growth opportunities
Construc- tion 68%
Services &Retail 10%
Industrial 15%
Private 3% Public
4%
Targeting 40% of Group sales to non-construction customers
Company overview
56
Summary of company’s strengths
Leading equipment rental company in Northern, Central and Eastern Europe More than 50 years industry experience Diversified portfolios of customers, products and markets Stable profitability and steady cash flow Flexibility to maneuver: capex and cost flexibility, strong balance sheet Strong financial position and funding
Senat's square, Helsinki, Finland
Company overview
Largest shareholders
Largest shareholders March 31, 2013
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 7,368,799 6.78%
4. Odin funds 4,438,955 4.08%
5. Ilmarinen Mutual Pension Insurance Company 4,295,154 3.95%
6. Nordea funds 2,634,207 2.42%
7. Aktia funds 2,082,640 1.92%
8. Veritas Pension Insurance Company Ltd 1,379,139 1.27%
9. Fondita funds 1,102,000 1.01%
10. Föreningen Konstsamfundet Rf 825,000 0.76%
Ramirent Oyj treasury shares 998,631 0.92%
Nominee registered 19,260,396 17.72%
Other shareholders 20,468,100 18.83%
Total 108,697,328 100.00%
57
Market Cap EUR 794.8 million
Trading information Listing: NASDAX OMX Helsinki Date of listing: April 30, 1998
Segment: Mid Cap Sector: Industrials
Trading code: RMR1V
16%
26%
13% 9% 2%
34%
Private companies
Financial and insurance institutions
Public sector organizations
Households
Non-profit organizations
Foreigners
Shareholders March 31, 2013
Company overview
Share price development
58
EUR Ramirent Plc (RMR1V)
Company overview
0
2
4
6
8
10
12
14
7.57* EUR
*May 7, 2013
APPENDIX
59
Consolidated income statement
60 Appendix
CONSOLIDATED INCOME STATEMENT 1–3/13
Restated* 1–3/12
Restated* 1–12/12
(EUR 1,000)
Rental income 98,906 103,073 463,070
Ancillary income 49,608 53,745 223,899
Sales of equipment 4,305 7,513 27,115
NET SALES 152,819 164,331 714,083
Other operating income 11,175 427 3,026
Materials and services −49,958 −55,056 −237,184
Employee benefit expenses −41,875 −42,489 −166,324
Other operating expenses −23,976 −25,361 −103,249
Share of result in associates and joint ventures −108 − 116
Depreciation and amortisation and impairment charges −30,073 −29,512 −117,943
EBIT 18,005 12,340 92,524
Financial income 4,242 7,016 20,320
Financial expenses −7,048 −8,687 −29,803
EBT 15,199 10,670 83,041
Income taxes −4,180 −2,773 −19,291
NET RESULT FOR THE PERIOD 11,019 7,896 63,749
Net result for the period attributable to:
Owners of the parent company 11,019 7,896 63,749
Non-controlling interest − − −
TOTAL 11,019 7,896 63,749
Earnings per share (EPS)
EPS on parent company shareholders' share of profit, basic, EUR 0.10 0.07 0.59
EPS on parent company shareholders' share of profit, diluted, EUR 0.10 0.07 0.59
*Retrospective application of amendment to IAS 19 affecting Sweden and Norway segments
61 Appendix
Balance sheet - Assets
CONSOLIDATED BALANCE SHEET 31/3/2013 Restated* 31/3/2012
Restated* 31/12/2012*
(EUR 1,000) NON-CURRENT ASSETS Property, plant and equipment 453,921 486,878 451,511 Goodwill 131,247 133,413 133,515 Other intangible assets 40,311 40,443 40,381 Investments in associates and Joint Ventures 22,425 972 1,125 Non-current loan receivables 20,250 − − Available-for-sale investments 412 412 412 Deferred tax assets 1,856 13,973 10,344 TOTAL NON-CURRENT ASSETS 670,422 676,092 637,288 CURRENT ASSETS Inventories 15,281 17,836 15,250 Trade and other receivables 115,351 113,702 135,600 Current income tax assets 1,923 1,225 145 Cash and cash equivalents 92,437 2,625 1,338 TOTAL CURRENT ASSETS 224,992 135,387 152,333 Assets to be transferred to the Joint Venture − − 42,250 TOTAL ASSETS 895,414 811,479 831,872 *Retrospective application of amendment to IAS 19 affecting Sweden and Norway segments
Balance sheet – Equity and liabilities
62 Appendix
CONSOLIDATED BALANCE SHEET 31/3/2013 Restated* 31/3/2012
Restated* 31/12/2012
(EUR 1,000)
EQUITY
Share capital 25,000 25,000 25,000
Revaluation fund −4,273 −4,223 −4,924
Invested unrestricted equity fund 113,568 113,329 113,329
Retained earnings 207,290 170,686 230,168
PARENT COMPANY SHAREHOLDERS’ EQUITY 341,585 304,792 363,573
Non-controlling interests − − −
TOTAL EQUITY 341,585 304,792 363,573
NON-CURRENT LIABILITIES
Deferred tax liabilities 65,286 77,643 73,333
Pension obligations 14,784 10,852 13,948
Provisions 964 1,373 972
Interest-bearing liabilities 277,820 225,129 191,199
Other long-term liabilities 5,669 10,127 8,071
TOTAL NON-CURRENT LIABILITIES 364,523 325,123 287,523
CURRENT LIABILITIES
Trade payables and other liabilities 143,323 139,117 112,956
Provisions 499 1,208 826
Current income tax liabilities 10,533 6,017 10,936
Interest-bearing liabilities 34,951 35,222 49,513
TOTAL CURRENT LIABILITIES 189,306 181,564 174,231
Liabilities to be transferred to the Joint Venture − − 6,545
TOTAL LIABILITIES 553,829 506,687 468,299
TOTAL EQUITY AND LIABILITIES 895,414 811,479 831,872
*Retrospective application of amendment to IAS 19 affecting Sweden and Norway segments
Key figures
63 Appendix
KEY FINANCIAL FIGURES 1–3/13
Restated* 1–3/12
Restated* 1–12/12
(MEUR) Net sales, EUR million 152.8 164.3 714.1
Increase in net sales, % −7,0% 22.3% 9.9%
Operating result before depreciation and amortisation (EBITDA), EUR million 48.1 41.9 210.5
Operating result before depreciation and amortisation (EBITDA), % of net sales 31.5% 25.5% 29.4%
Operating result before amortisation of intangible assets (EBITA), EUR million 22.6 14.4 100.6
Operating result before amortisation of intangible assets (EBITA), % net sales 14.8% 8.7% 14.1%
Operating result (EBIT), EUR million 18.0 12.3 92.5
Operating result (EBIT), % of net sales 11.8% 7.5% 13.0%
Result before taxes (EBT), EUR million 15.2 10.7 83.0
Result before taxes (EBT), % of net sales 9.9% 6.5% 11.6%
Net result for the financial year, EUR million 11.0 7.9 63.7
Net result for the financial year, % of net sales 7.2% 4.8% 8.9%
Return on invested capital (ROI), % 18.9% 19.6% 18.9%
Return on equity (ROE), % 20.7% 16.9% 18.6%
Interest-bearing debt, EUR million 312.8 260.4 240.7
Net debt, EUR million 220.3 257.7 239.4
Net debt to EBITDA ratio 1.0x 1.2x 1.1x
Gearing, % 64.5% 84.6% 65.8%
Equity ratio, % 38.2% 37.6% 43.7%
Personnel, average during financial year 2,913 3,131 3,077
Personnel, at end of financial year 2,751 3,086 3,005
Gross capital expenditure, EUR million 32.4 35.7 124.0
Gross capital expenditure, % of net sales 21.2% 21.7% 17.4%
*Retrospective application of amendment to IAS 19 affecting Sweden and Norway segments
Consolidated Cash flow statement
64 Appendix
Cash flow from operating activities (1 000 EUR) 1–3/13 1–3/12 1–12/12
Result before taxes 15,199 10,670 83,041
Adjustments
Depreciation, amortisation and impairment charges 30,073 29,512 117,943
Adjustment for proceeds from sale of used rental equipment 1,879 4,794 12,542
Financial income and expenses 2,806 1,671 9,413
Other adjustments −14,908 −980 −1,438
Change in working capital
Change in trade and other receivables 19,135 9,096 −15,367
Change in inventories −147 81 1,576
Change in non-interest-bearing current liabilities −2,385 −6,984 −11,577
Interest paid −2,624 −3,262 −12,293
Interest received 480 1,065 3,470
Income tax paid −7,443 −4,443 −13,325
Net cash generated from operating activities 42,064 41,219 173,985
Cash flow of investing activities
Acquisition of subsidiaries, net of cash − −10,038 −13,940
Investment in tangible non-current asset −28,992 −17,191 −99,177
Investment in intangible non-current assets −1,757 −7,706 −7,598
Proceeds from sale of tangible and intangible non-current assets (exc. Used rental equipment 54 105 897
Proceeds from sales of subsidiaries 9,200 − −
Loan receivables, increase, decrease and other changes −1,567 − −
Net cash flow of investing activities −23,062 −34,829 −119,818
Cash flow from financing activities
Dividends paid − − −30,147
Purchase of treasury shares − −2,714 −2,714
Borrowings and repayments of short-term debt (net) −14,563 −8,500 5,500
Proceeds from long-term borrowings 99,030 13,557 9,311
Repayments of long-term debt −12,370 −8,539 −37,211
Net cash flow of financing activities 72,096 −6,197 −55,261
Net change in cash and cash equivalents during the financial period 91,099 193 −1,094
Cash at the beginning of the period 1,338 2,431 2,431
Cash at the end of the period 92,437 2,625 1,338
Segment information: Net sales
65 Appendix
NET SALES 1–3/13 Restated*
1–3/12 Restated*
1–12/12 (MEUR) FINLAND - Net sales (external) 35.0 37.9 165.0 - Inter-segment sales 0.1 0.5 1.5 SWEDEN - Net sales (external) 50.0 48.1 207.5 - Inter-segment sales 0.3 − 2.4 NORWAY - Net sales (external) 38.1 43.7 173.6 - Inter-segment sales − 0.1 0.5 DENMARK - Net sales (external) 9.1 9.8 44.6 - Inter-segment sales − − 0.1 EUROPE EAST - Net sales (external) 9.7 12.0 63.0 - Inter-segment sales − 0.2 0.3 EUROPE CENTRAL - Net sales (external) 11.0 12.8 60.4 - Inter-segment sales − 0.5 2.3 Elimination of sales between segments −0.4 −1.2 −7.1 NET SALES, TOTAL 152.8 164.3 714.1 Other operating income 11.2 0.4 3.0
*Retrospective application of amendment to IAS 19 affecting Sweden and Norway segments
Segment information: EBIT and EBIT-margin
66 Appendix
EBIT 1–3/12 Restated*
1–3/12 Restated*
1–12/12
(MEUR)
FINLAND 3.1 5.0 30.2
% of net sales 8.8% 12.9% 18.2%
SWEDEN 6.7 6.5 33.3
% of net sales 13.3% 13.5% 15.9%
NORWAY 4.3 3.9 22.2
% of net sales 11.4% 8.9% 12.8%
DENMARK −1.5 −0.2 1.6
% of net sales −16.0% −2.1% 3.6%
EUROPE EAST 11.0 −0.1 10.9
% of net sales 113.1% −0.6% 17.3%
EUROPE CENTRAL −5.2 −2.2 −1.6
% of net sales −47.5% −16.8% −2.5%
Net items not allocated to operating segments −0.4 −0.5 −4.2
GROUP EBIT 18.0 12.3 92.5
% of net sales 11.8% 7.5% 13.0%
*Retrospective application of amendment to IAS 19 affecting Sweden and Norway segments
For more information: www.ramirent.com Magnus Rosén, CEO +358 20 750 2845 [email protected] Jonas Söderkvist, CFO +358 20 750 3248 [email protected] Franciska Janzon, IR +358 20 750 2859 [email protected]