rr results q2_2013_en_final
DESCRIPTION
Ramirent Q2 2013 Interim ReportTRANSCRIPT
INTERIM REPORT Q2/2013August 8, 2013
CEO Magnus RosénCFO Jonas Söderkvist
Agenda
Highlights Q2 and 1-6/2013
Market outlook
Segment review
Financial review
Company overview
Appendix
2
Agenda
3
Highlights Q2/2013
Net sales MEUR 160.8 (169.7) down by 5.3% (down by 5.8% at comparable exchange rates); adjusted for the transfer of the operations in Russia and Ukraine to Fortrent, net sales decreased by 0.7%
EBITA MEUR 22.7 (24.7) or 14.1% (14.6%) of net sales
Cash flow after investments MEUR −5.2 (7.3)
After the review period, Ramirent signed agreement to divest itsHungarian operation
Highlights: Q2/2013
4
Highlights 1-6/2013
Net sales MEUR 313.6 (334.1) down by 6.1% (down by 7.2% at comparable exchange rates); adjusted for the transfer of the operations in Russia and Ukraine to Fortrent, net sales decreased by 3.2%
EBITA MEUR 45.3 (39.1) or 14.4% (11.7%) of net sales
EBITA excluding non-recurring items1)
was MEUR 35.1 (39.1) or 11.2% (11.7%)
Net result MEUR 23.3 (22.9) and EPS EUR 0.22 (0.21)
Gross capex MEUR 62.4 (59.6)Cash flow after investments MEUR 13.8 (13.6)
Net debt to EBITDA ratio 1.2x (1.4x)
Highlights: Q2/2013
1) Non-recurring item included a non-taxable capital gain of MEUR 10.1 from the formation of Fortrent.
Oslo,Norway
5
Quarterly net sales Q1/2010 – Q2/2013 (MEUR)
Second-quarter adjusted net sales were on par with the corresponding period last year
111.5
128.7
140.9
150.1
134.4
149.5
179.2186.8
164.3169.7
185.9194.1
152.8160.8
0
50
100
150
200
250
Q1 Q2 Q3 Q4
2010 2011 2012 2013
Q2/2013 Net sales decreased by 5.3% or 5.8% at comparable exchange rates
Adjusted for the transfer of the operations in Russia and Ukraine to Fortrent, net sales decreased by 0.7%
Highlights: Q2/2013
6
Quarterly EBITA-margin (%) Q1/2010 – Q2/2013
Profitability remained close to last year's level despite mixed market picture
-4.5%
6.2%
12.4%
8.5%
2.7%
11.0%
17.9%
14.6%
8.7%
14.6%
17.1%
15.3%14.8%
14.1%
-10%
-5%
0%
5%
10%
15%
20%
Q1 Q2 Q3 Q4
2010 2011 2012 2013
Highlights: Q2/2013
7
7.0
8.6
5.4
0.2
1.6
0.1
5.8
8.9
7.3
-0.1
0.0 0.3
-6
-4
-2
0
2
4
6
8
10
12
EBIT MEUR Q2/2013 vs. Q2/2012
Second-quarter EBIT improved in Norway and Sweden
17.0% 16.9%
14.2%
2.0%
10.8%
0.9%
15.8%16.8%
18.9%
-0.5%
0.3%
2.1%
-5%
0%
5%
10%
15%
20%
EBIT margin, % Q2/2013 vs. Q2/2012
Q2/2012 Q2/2013 Q2/2012 Q2/2013
Highlights: Q2/2013
After the review period, Ramirentsold its entire Hungarian operation to the Danube SCA Sicar, a private equity fund
The transaction will result in a non-recurring cost due to foreign exchange translation differences of app. EUR 2 million
Divestment is line with aim to strengthen the strategic focus on higher growth opportunities in Ramirent's core markets in the Baltic Sea region
Completion of the sale is expected during the third quarter
Ramirent sold its operations in Hungary
Hungary Net sales* 7 MEURPersonnel: 83 Customer centres: 13*Forecast for 2013
Ramirent Europe Central
Highlights Q2/20138
All long-term financial targets were met in Q2/2013
9
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 1–6/2013
19.3%
1.2x
57.6%* of 2012 net profit
*Paid for 2012
Highlights: Q2/2013
MARKETOUTLOOK
10
Flow Festival, Helsinki, Finland
Flow Festival, Helsinki, Finland
Market outlook –Construction output forecasts
11
Market outlook
Country 2012 2013F Source
Nordic
Finland −3.8% −1.2% Euroconstruct
Sweden −2.9% −0.8% Euroconstruct
Norway 5.4% 5.7% Euroconstruct
Denmark −1.1% 3.0% Euroconstruct
Europe Central
Poland 0.0% −5.6% Euroconstruct
Czech Republic −7.4% −6.1% Euroconstruct
Slovakia −13.8% −2.0% Euroconstruct
Hungary −5.4% 2.5% Euroconstruct
Europe East
Russia 2.0% 3.0% Euroconstruct
Estonia 19.0% −2.0% Euroconstruct
Latvia 14.0% 7.0% Euroconstruct
Lithuania −7.0% 4.0% Euroconstruct
Ukraine n.a. n.a. Euroconstruct
Source: Euroconstruct June 2013
Residential construction expected to increase in Norway
12
Source: Euroconstruct June 2013
Residential construction (output) 2008 – 2014F
Index 2008 = 100 (volume)
Forecasts for Europe East countries not available
Market outlook
109
94
122
9291
70
80
90
100
110
120
130
2008 2009 2010 2011 2012 2013F 2014F
Finland Sweden Norway Denmark Europe Central
Non–residential construction forecasted to remain stable
13
Non–residential construction (output) 2008 – 2014F
Index 2008 = 100 (volume)
78
91
105
67
97
60
70
80
90
100
110
120
2008 2009 2010 2011 2012 2013F 2014F
Finland Sweden Norway Denmark Europe Central
Source: Euroconstruct June 2013 Forecasts for Europe East countries not available
Market outlook
Renovation markets expected to continue to grow steadily
14
Renovation in construction sector (output) 2008 – 2014F
Index 2008 = 100 (volume)
109
103
121
107
116
70
80
90
100
110
120
130
2008 2009 2010 2011 2012 2013F 2014F
Finland Sweden Norway Denmark Europe Central
Source: Euroconstruct June 2013 Forecasts for Europe East countries not available
Market outlook
15
Market outlook
Nordic construction order books (inc.Skanska, YIT and SRV) decreased by 3.7% in Q2/2013
A decrease of 3.7% in Q2/13 vs. Q2/12 in construction companies order
books (including Skanska, YIT and SRV)
-40%
-20%
0%
20%
40%
60%
0
1
2
3
4
5
6
7
8
9
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
Q2
Order books: Nordic construction companiesBEUR fixed exchange rates
Skanska YIT
SRV Change in Net sales YoY, R12 Ramirent
Change in order backlog YoY, Nordic construction
Ramirent outlook for 2013
16
Ramirent previously estimated the full year 2013 EBITA to remain at the 2012 level.
Due to the non-recurring cost of divesting Hungary, Ramirent's 2013 EBITA is expected to be slightly below the 2012 level.
Market outlook
SEGMENT REVIEW
17
Riga European Capital of Culture 2014,
Latvia
Riga European Capital of Culture 2014,
Latvia
28
36 3835
30
37
4542
3841
4542
35 36
-5%
0%
5%
10%
15%
20%
25%
30%
0
5
10
15
20
25
30
35
40
45
50
Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Q2
Net sales EBIT-%
Finland
Season started exceptionally late this year
Demand for equipment rental lower than in comparative period
Stable demand in industrial sector
Low market activity in Northern Finland
Price pressure continued
18
Highlights Q2/2013 Sales and EBIT by quarter
Finland Q2 2013
Q2 2012
Change(EUR)
Change(Local)
1–6/ 2013
1–6/ 2012
Change(EUR)
Change(Local)
Net sales, MEUR 36.4 41.4 −12% 71.5 79.8 −11%
EBIT, MEUR 5.8 7.0 −18% 8.9 12.0 −26%
EBIT–margin 15.8% 17.0% 12.4% 15.0%
Personnel 588 619 −5% 588 619 −5%
Customer centres 76 80 −5% 76 80 −5%
Segment review
19
Demand of equipment rental improved in the end of Q2
In capital region, demand was supported by stable development in construction sector
Lack of big construction projects in Southern Sweden
EBIT improved due to improved utilisation rates and pick up in demand
2935 36
4541 42
45
5448
51 5358
5053
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
Q2
Net sales EBIT-%
Sales and EBIT by quarter
Segment review
Highlights Q2/2013
Sweden
Sweden Q2 2013
Q2 2012
Change(EUR)
Change(Local)
1–6/ 2013
1–6/ 2012
Change(EUR)
Change(Local)
Net sales, MEUR 53.1 50.9 4% 0% 103.4 99.1 4% 0%
EBIT, MEUR 8.9 8.6 3% 15.6 15.1 3%
EBIT–margin 16.8% 16.9% 15.1% 15.3%
Personnel 702 727 −3% 702 727 −3%
Customer centres 76 84 −10% 76 84 −10%
Norway
20
High activity in construction and oil & gas sector
Demand was favourable in all geographical areas, except Southern Norway
EBIT improved due to better operational efficiency and good cost control
Price levels increased slightly
28 27 2831 33 30
4042 44
3841
51
38 39
-5%
0%
5%
10%
15%
20%
0
10
20
30
40
50
60
Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Q2
Net sales EBIT-%
Sales and EBIT by quarter
Segment review
Highlights Q2/2013
Norway Q2 2013
Q2 2012
Change(EUR)
Change(Local)
1–6/ 2013
1–6/ 2012
Change(EUR)
Change(Local)
Net sales, MEUR 38.8 38.1 2% 5% 76.9 81.8 −6% −6%
EBIT, MEUR 7.3 5.4 36% 11.7 9.3 25%
EBIT–margin 18.9% 14.2% 15.2% 11.4%
Personnel 472 471 0% 472 471 0%
Customer centres 43 43 − 43 43 −
21
Demand for equipment rental was stable
Activity in construction sector improved slightly
Profitability still suffering from low price levels
Ramirent has taken actions to reduce fixed costs
89 9 10
810
11
15
1011 11
12
9
11
-20%
-15%
-10%
-5%
0%
5%
10%
0
2
4
6
8
10
12
14
16
Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Q2
Net sales EBIT-%
Sales and EBIT by quarter
Segment review
Highlights Q2/2013
Denmark
Denmark Q2 2013
Q2 2012
Change(EUR)
Change(Local)
1–6/ 2013
1–6/ 2012
Change(EUR)
Change(Local)
Net sales, MEUR 11.2 11.2 0% 0% 20.3 21.0 −4% −3%
EBIT, MEUR −0.1 0.2 n/a −1.5 0.0 n/a
EBIT–margin −0.5% 2.0% −7.5% 0.1%
Personnel 186 178 5% 186 178 5%
Customer centres 16 22 −27% 16 22 −27%
22
Activity in construction sector remained stable
Adjusted for the transfer of the operations in Russia and Ukraine to Fortrent, net sales increased by 4.9%
Price levels remained stable
The integration of Fortrent’sbusiness operations is proceeding according to plan
8
10
1213
9
13
17 16
12
15
19 17
10
8
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
0
2
4
6
8
10
12
14
16
18
20
Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Q2
Net sales EBIT-%
Sales and EBIT by quarter
Segment review
Highlights Q2/2013
(113%)
1) Adjusted for the transfer of the operations in Russia and Ukraine to Fortrent, Q2/2013 net sales increased by 4.9%
2) January-June 2013 EBIT excl. capital gain EUR 0.9 million or 5.2% of net sales
Europe East
Europe East Q2 2013
Q2 2012
Change(EUR)
Change(Local)
1–6/ 2013
1–6/ 2012
Change(EUR)
Change(Local)
Net sales, MEUR 7.6 15.0 −50%1)
−50% 17.3 27.2 −36% −36%
EBIT, MEUR 0.0 1.6 −99% 11.02)
1.5 613%
EBIT–margin 0.3% 10.8% 63.7%2)
5.7%
Personnel 209 433 −52% 209 433 −52%
Customer centres 41 60 −32% 41 60 −32%
23
Weak demand in all Europe Central countries
Market activity was at low level in construction sector, especially in Poland
EBIT was hampered by weak volumes and low utilisation rates
Intense competition and overcapacity in the market increased pressure on rental prices
12
16
20 19
14
19
22
19
1315
1816
11
14
-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
Q2
Net sales EBIT-%
Sales and EBIT by quarter
Segment review
Highlights Q2/2013
1) January-June 2013 EBIT excluding EUR 2.9 million impairment loss in the Hungarian goodwill was EUR −2.0 million, representing −8.0% of net sales
Europe Central
Europe Central Q2 2013
Q2 2012
Change(EUR)
Change(Local)
1–6/ 2013
1–6/ 2012
Change(EUR)
Change(Local)
Net sales, MEUR 14.1 15.3 −8% −8% 25.1 28.5 −12% −13%
EBIT, MEUR 0.3 0.1 126% −4.91)
−2.1 n/a
EBIT–margin 2.1% 0.9% −19.6%1)
−7.3%
Personnel 589 676 −13% 589 676 −13%
Customer centres 73 90 −19% 73 90 −19%
FINANCIAL REVIEW
24
Tall Ships Race, Helsinki,Finland
Tall Ships Race, Helsinki,Finland
Stable profitability and strong financial position
25
Net Sales (MEUR) EBITDA (MEUR)
Cash flow (MEUR) Net debt (MEUR) Gross Capex (MEUR)
EBITA (MEUR)
1322
1018
3245
120
4636
24 2837 32 30
0%
10%
20%
30%
40%
50%
60%
70%
80%
0
20
40
60
80
100
120
140
Q12010
Q2Q3Q4Q12011
Q2Q3Q4Q12012
Q2Q3Q4Q12013
Q2
Gross Capex Share of net sales-%
212209197
177191
238
280263258
281256
239220
264
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
Q2
Net debt Gearing-%
-5
8
17
13
4
17
32
27
14
25
3230
23 23
-10%
-5%
0%
5%
10%
15%
20%
-10
-5
0
5
10
15
20
25
30
35
Q12010
Q2Q3Q4Q12011
Q2Q3Q4Q12012
Q2Q3Q4Q12013
Q2
EBITA EBITA-%
18
31
4237
28
41
5955
42
52
6057
48 49
0%
5%
10%
15%
20%
25%
30%
35%
0
10
20
30
40
50
60
70
Q12010
Q2Q3Q4Q12011
Q2Q3Q4Q12012
Q2Q3Q4Q12013
Q2
EBITDA EBITDA-%
112129
141150134
150
179187164170
186194
153161
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
0
50
100
150
200
250
Q12010
Q2Q3Q4Q12011
Q2Q3Q4Q12012
Q2Q3Q4Q12013
Q2
Net sales Y-o-y change-%
-4
13 14
24
-11
-20
-37
16
6 7
24
17 19
-5
-40
-30
-20
-10
0
10
20
30
Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Q2
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
First-quarter EBITA excluding non-recurring items was EUR 12.4 million, representing 8.1% of net sales
Net sales decreased by 5.3% in Q2/2013, comparable net sales decreased by 0.7%
26
112
129
141150
134
150
179187
164170
186194
153161
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
Q2
Net sales (MEUR) Q1/2010 – Q2/2013
1-12/2010: 531.3
Financial review
Net sales decreased by 5.8% at comparable exchange rates
Comparable net sales decreased by 0.7% (adjusted for the transfer of the operations in Russia and Ukraine to Fortrent)
1-12/2011: 649.9 1-12/2012: 714.1 R12: 693.6
27
Net sales by segment (MEUR) and Change % (YoY)
−12.2% 1.9% −7.7%−49.6%−0.1%4.3%
Net sales grew in Sweden and Norway
Financial review
41.4
50.9
38.1
11.2
15.0 15.3
36.4
53.1
38.8
11.2
7.6
14.1
0
10
20
30
40
50
60
Finland Sweden Norway Denmark Europe East EuropeCentral
Q2/2012 Q2/2013
Rental income and ancillary income decreased compared to previous year
Q2/2012 compared to Q2/2013:
• Rental income decreased by 6.5%
• Ancillary income decreased by 5.9%
• Income from sold equipment increased by 21.3%
28
66% 65%
31% 30%
4% 5%
0%
20%
40%
60%
80%
100%
Q2/2012 Q2/2013
Income from sold equipment
Ancillary income
Rental income
Breakdown of net sales (%) and MEUR
111.7 104.5
51.848.7
6.3 7.6
0
50
100
150
200
Q2/2012 Q2/2013
Income from sold equipment
Ancillary income
Rental income
Financial review
Gross margin improved slightly year-on-year
29
Gross margin (%) by quarter
65%
67%
68%
66%
67%67%
68%
69%
66%
68%
66%
68% 69%
64%
67%67%
69%
Q1 Q2 Q3 Q4 FY
2010 2011 2012 2013
Financial review
Number of employees decreased mainly due to scaling down of operations in Europe Central
At the end of June 2013, the Group’s number of employees was 2,777 (3,129)
At the end of 2012, number of employees in Russia and Ukraine was 238
30
Number of employees by segment
619
727
471
178
433
676
572
677
467
192
443
626588
702
472
186209
589
Finland Sweden Norway Denmark Europe East EuropeCentral
Personnel 30/6/12 Personnel 31/12/12 Personnel 30/6/13
Financial review
Customer centres were reduced in Sweden, Denmark and Europe Central segment
334 325
Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Q2
Finland Sweden Norway Denmark Europe East Europe Central
Number of customer centres per segment
31
Financial review
353
Fixed costs have remained well under control
Group fixed costs MEUR 127.3 (132.8) in 1-6/2013
32
Fixed costs by quarter (MEUR)
Financial review
33 33 3238 37 37
41 42 42 40 42 42 42 39
22 23 22
24 27 2525
28 2525
26 27 2422
56 56 54
62 63 6266
70 6865
68 6966
62
Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Q2
Employee benefit expenses Other operating expenses
Profitability remained stable in the secondquarter 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
22.61) 22.7
-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
Q2
EBITA EBITA-%
EBITA (MEUR) and EBITA-margin (%) Q1/2010 – Q2/2013
1-12/2010: 33.0 1-12/2011: 79.4 1-12/2012: 100.6
1) 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 netsales
Financial review
Group net sales and EBITA excluding transferred operations to Fortrent (in Russia and Ukraine)
34
157.6 148.3 161.9 160.8 176.3 184.7
6.84.6
7.8 0.09.6 9.4
0
50
100
150
200
Group (exc. Russia and Ukraine) Russia and Ukraine
Group Net sales and Net sales in Russia and Ukraine (MEUR)
Financial review
Group EBITA and EBITA in Russia and Ukraine (MEUR)
14.6 11.4
24.1 23.430.1
25.9-0.2 11.4
0.6 0.0
1.73.5
05
101520253035
Group (exc. Russia and Ukraine) Russia and Ukraine Fortrent
−0.2 (Fortrent)
−0.8 (Fortrent)
January-June 2013 included EUR 7.2 millionof non-recurring items
Reported EBIT was EUR 39.0 (35.1) million or 12.4% (10.5%) of net sales
Non-recurring items in 1-6/2013: 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 31.7 million, representing 10.1% of net sales
35
EBIT (MEUR) 1-6/12 vs 1-6/13
35.139.0
10.12.9
31.7
0
5
10
15
20
25
30
35
40
45
1-6/2012reported
1-6/2013reported
Capital gain Goodwillimpairment
1-6/2013adjusted
Financial review
Good level of EBIT margin in Norway, Sweden and Finland
36
17.0% 16.9%
14.2%
2.0%
10.8%
0.9%
15.8%16.8%
18.9%
-0.5%
0.3%
2.1%
Finland Sweden Norway Denmark East Central
Q2/12 Q2/13
EBIT–margin (%) by segments
Financial review
Ramirent continued its cautiousness with capital expenditure
The total value of purchased equipment was 57.3 (41.9) million in 1-6/2013
The value of sold rental equipment was EUR 11.9 (13.8) million in 1-6/2013
37
Purchased and sold equipment by quarter (MEUR)
Financial review
8
19
9
17
30
38
67
34
20 2225
3429 28
5 4 3 4 4 5 612
8 6 6 84
8
Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Q2
Purchased equipment Sold equipment
Capital expenditure focused on Norway, Sweden and Finland
No acquisitions were made during the quarter
38
5.0
7.9
6.3
0.3
2.6
1.5
6.4
8.2 8.3
2.22.8
1.1
Finland Sweden Norway Denmark East Central
4–6/2012 4–6/2013
Capital Expenditure by segments (MEUR)
Financial review
Working capital again at some 6% of net sales
Q2/2013 credit losses and net change in the allowance for bad debt totalled EUR −0.9 (−0.9) million
Dividend of EUR 36.6 million paid in April 2013
39
15 14 14 16 16 17 17 17 18 18 20 15 15 15
83 90 99
97
95
109
124
120
114
131
141
136
115
129
-69
-86
-86
-89
-82
-84
-107
-109
-139
-112
-122
-113
-143 -98
-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
Q2
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 the second quarter
40
Invested capital (MEUR) and ROI (%) rolling 12 months
524 508 509 496 508536
588 591565
602 605 604654
611
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
Q2
Invested capital ROI % (R12)
Return on invested capital, ROI 19.2% (19.0%) at the end of June2013
Financial review
Cash flow after investments at lower level compared with the previous year
41
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
23.716.8 19.0
−5.2
Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Q2
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 R12: 54.3
212 209197
177191
238
280263 258
281
256239
220
264
1.8x1.9x
1.7x
1.4x 1.4x
1.6x1.7x
1.4x
1.2x1.4x
1.2x1.1x
1.0x
1.2x
0
1
2
3
0
50
100
150
200
250
300
Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Q2
Net debt Net debt to EBITDA ratio
Ramirent's financial position is strong
Net debt to EBITDA 1.2x (1.4x) at the end of June 2013
Dividend of EUR 36.6 million was paid in the second quarter
42
Net debt (MEUR) and Net debt to EBITDA ratio
Financial review
At end of June 2013, Ramirent had unused committed back–up loan facilities of EUR 174.7 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
100
240
100
2013 2014 2015 2016 2017 2018 2019
264 MEUR in net debt
440 MEUR in committed credit facilities
Return on equity remained above the long-term financial target
44
309296 308 318 316
296 305326
305319
347364
342 344
-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
Q2
Total equity ROE % (R12)
Total equity (MEUR) and ROE (%) rolling 12 months
Return on equity, ROE 19.3% (19.0%) for last 12 months
Financial review
For more information:www.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]
COMPANYOVERVIEW
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 325 customer centers and
in two countries through joint venture Fortrent
Listed on NASDAQ OMX Helsinki since 1998
2,777 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 1-6/2013Wide network of customer centresand leading market position (Q2/13)
Finland23%
Sweden32%
Norway25%
Denmark6%
EuropeEast 6%
Europe Central8%
Sales per customer 1-12/2012
Construc-tion68%
Services &Retail10%
Industrial15%
Private3%
Public4%
Target is to increase sales to non-constructioncustomers to 40% of the Group's net sales
Finland76 customer centres # 1
Europe East
41 customer centres# 1
Norway43 customer
centres# 1
Denmark16 customer
centres# 1
EuropeCentral
73 customer centres# 1
Sweden76 customer centres # 2
Company overview
Fortrent,presencethrough JV
Targeting a wider range of customer industries in all countries
Shipyards
Construction
HouseholdsAviationPower
Oil and gas
Public
Windpower
49© 2013 Ramirent
End of 2009
We accelerate our growth through acquisitions and outsourcing cases
50
Outsourcing dealin Denmark
Outsourcing dealin Finland Acquisition of
Finnish weather protection rental
company
Outsourcing deal with twosubsidiaries 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 ofSwedish rental
company
Acquisition ofDanish rental
business
Acquisition of specialist module rental company in
Norway
Danish scaffolding
division
Acquisition of
Swedish rental
company
Acquisition of Swedish rental
company
2010
20112012
Outsourcing dealin Norway
Fortrent(JV with Cramo
in Russia and Ukraine)
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
RAMIRENT OFFERING
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 equipmentimproves efficiency,less product liability risk
Benefits:
Easy to buy, reduced number ofsubcontractors, increased focuson the core business
OUTSOURCING
Benefits:
By outsourcing their machine fleet to Ramirent, companies can increase efficiency and simplify their business by focusing on core competencesINDUSTRIES
• Construction • Mining • Paper
• Power generation • Oil & gas
• Shipyards • Retail and Service
• Public sector • Households
Company overview
Our offering
53
Company overview
54
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
Company overview
Weak Stable Strong
Strategic themes
Customer FirstSustainable profitable growth
Operational ExcellenceBalanced 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 fixedcost base
• Prepare contingency plans
• Growth capex for expansion
Business cycleBusiness cycle
Counter cyclicalcash flow
Counter cyclicalcash flow
Market conditions
55
Weak market conditions in 2009-2010
Increased demand and investments
2011-2012
Our strategic and operational themes through the business cycles
Company overview
56
Organic growth drivers70%
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
Outsourcingdeals
Bolt-on and selected strategicacquisitions
JointVentures
Good organic and strategic growth opportunities
Construc-tion68%
Services &Retail10%
Industrial15%
Private3%Public
4%
Targeting 40% of Group sales to non-constructioncustomers
Company overview
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: capexand cost flexibility, strong balance sheet
Strong financial position and funding
Company overview
57
Largest shareholders
Largest shareholdersJune 30, 2013
Number of shares
% of sharecapital
1. Nordstjernan AB 31,882,078 29.33%
2. Oy Julius Tallberg Ab 12,207,229 11.23%
3. Varma Mutual Pension Insurance Company 6,753,799 6.21%
4. Odin funds 4,138,955 3.81%
5. Ilmarinen Mutual Pension Insurance Company 4,145,154 3.81%
6. Nordea funds 3,080,208 2.83%
7. Aktia funds 2,087,211 1.92%
8. Veritas Pension Insurance Company Ltd 1,340,882 1.23%
9. Fondita funds 1,169,822 1.08%
10. Föreningen Konstsamfundet Rf 825,000 0.76%
Ramirent Oyj treasury shares 998,631 0.92%
Nominee registered 19,346,680 17.80%
Other shareholders 20,721,679 19.06%
Total 108,697,328 100.00%
58
Market Cap EUR 721.8 million
Trading informationListing: NASDAX OMX HelsinkiDate of listing: April 30, 1998
Segment: Mid CapSector: Industrials
Trading code: RMR1V
16%
26%
12%10%
2%
34%
Private companies
Financial and insurance institutions
Public sector organizations
Households
Non-profit organizations
Foreigners
Shareholders June 30, 2013
Company overview
59
EURRamirent Plc (RMR1V)
Company overview
7.22 EUR*
Share price development
*August 6, 2013
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
APPENDIX
60
Consolidated income statement
61
Appendix
CONSOLIDATED INCOME STATEMENT 4–6/13 4–6/12 1–6/13 1–6/12
Restated*
1–12/12
(EUR 1,000)
Rental income 104,463 111,693 203,369 214,766 463,070
Ancillary income 48,748 51,788 98,356 105,533 223,899
Sales of equipment 7,593 6,258 11,897 13,770 27,115
NET SALES 160,803 169,738 313,623 334,069 714,083
Other operating income 521 557 11,696 983 3,026
Materials and services −50,230 −53,748 −100,188 −108,803 −237,184
Employee benefit expenses −39,313 −40,210 −81,188 −82,699 −166,324
Other operating expenses −22,201 −24,788 −46,177 −50,149 −103,249
Share of result in associates and joint ventures −817 56 −925 56 116
Depreciation and amortisation and impairment charges −27,791 −28,859 −57,863 −58,370 −117,943
EBIT 20,973 22,746 38,978 35,087 92,524
Financial income 5,582 2,549 9,824 9,565 20,320
Financial expenses −11,307 −5,319 −18,355 −14,006 −29,803
EBT 15,248 19,976 30,447 30,646 83,041
Income taxes −2,951 −5,019 −7,131 −7,792 −19,291
NET RESULT FOR THE PERIOD 12,297 14,958 23,316 22,854 63,749
Net result for the period attributable to:
Owners of the parent company 12,297 14,958 23,316 22,854 63,749
Non-controlling interest − − − − −
TOTAL 12,297 14,958 23,316 22,854 63,749
Earnings per share (EPS)
EPS on parent company shareholders' share of profit, basic, EUR 0.11 0.14 0.22 0.21 0.59
EPS on parent company shareholders' share of profit, diluted, EUR 0.11 0.14 0.22 0.21 0.59
*Retrospective application of amendment to IAS 19 affecting Sweden and Norway segments
62
Appendix
Balance sheet - Assets
CONSOLIDATED BALANCE SHEET 30/6/2013
Restated*
30/6/2012
Restated*
31/12/2012
(EUR 1,000)
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 435,457 477,196 451,511
Goodwill 126,719 134,394 133,515
Other intangible assets 39,254 39,864 40,381
Investments in associates and Joint Ventures 21,351 1,037 1,125
Non-current loan receivables 20,261 − −
Available-for-sale investments 412 412 412
Deferred tax assets 1,824 13,874 10,344
TOTAL NON-CURRENT ASSETS 645,278 666,778 637,288
CURRENT ASSETS
Inventories 14,765 18,103 15,250
Trade and other receivables 127,316 131,019 135,600
Current income tax assets 1,343 193 145
Cash and cash equivalents 3,093 2,089 1,338
TOTAL CURRENT ASSETS 146,516 151,404 152,333
Assets held for sale 6,702 − 42,250
TOTAL ASSETS 798,497 818,182 831,872
*Retrospective application of amendment to IAS 19 affecting Sweden and Norway segments
Balance sheet – Equity and liabilities
63
Appendix
CONSOLIDATED BALANCE SHEET 30/6/2013
Restated*
30/6/2012
Restated*
31/12/2012
(EUR 1,000)
EQUITY
Share capital 25,000 25,000 25,000
Revaluation fund −3,315 −4,568 −4,924
Invested unrestricted equity fund 113,568 113,329 113,329
Retained earnings 208,745 185,444 230,168
PARENT COMPANY SHAREHOLDERS’ EQUITY 343,997 319,205 363,573
Non-controlling interests − − −
TOTAL EQUITY 343,997 319,205 363,573
NON-CURRENT LIABILITIES
Deferred tax liabilities 59,657 78,082 73,333
Pension obligations 14,094 10,806 13,948
Provisions 909 1,140 972
Interest-bearing liabilities 245,948 223,818 191,199
Other long-term liabilities 5,588 9,133 8,071
TOTAL NON-CURRENT LIABILITIES 326,196 322,978 287,523
CURRENT LIABILITIES
Trade payables and other liabilities 97,400 111,592 112,956
Provisions 166 1,221 826
Current income tax liabilities 8,399 4,273 10,936
Interest-bearing liabilities 21,339 58,913 49,513
TOTAL CURRENT LIABILITIES 127,304 175,999 174,231
Liabilities classified as held for sale 999 − 6,545
TOTAL LIABILITIES 454,499 498,977 468,299
TOTAL EQUITY AND LIABILITIES 798,497 818,182 831,872
*Retrospective application of amendment to IAS 19 affecting Sweden and Norway segments
Key figures
64
Appendix
KEY FINANCIAL FIGURES 4–6/13 4–6/12 1–6/13
Restated*
1–6/12
Restated*
1–12/12
(MEUR)
Net sales, EUR million 160.8 169.7 313.6 334.1 714.1
Increase in net sales, % −5.3% 13.5% −6.1% 17.7% 9.9%
EBITDA and impairment charges, EUR million 48.8 51.6 96.8 93.5 210.5
EBITDA and impairment charges, % of net sales 30.3% 30.4% 30.9% 28.0% 29.5%
EBITA, EUR million 22.7 24.7 45.3 39.1 100.6
EBITA, % net sales 14.1% 14.6% 14.4% 11.7% 14.1%
EBIT, EUR million 21.0 22.7 39.0 35.1 92.5
EBIT, % of net sales 13.0% 13.4% 12.4% 10.5% 13.0%
EBT, EUR million 15.2 20.0 30.4 30.6 83.0
EBT, % of net sales 9.5% 11.8% 9.7% 9.2% 11.6%
Net result for the financial year, EUR million 12.3 15.0 23.3 22.9 63.7
Net result for the financial year, % of net sales 7.6% 8.8% 7.4% 6.8% 8.9%
Gross capital expenditure, EUR million 30.0 23.9 62.4 59.6 124.0
Gross capital expenditure, % of net sales 18.7% 14.1% 19.9% 17.8% 17.4%
Invested capital, EUR million, end of period 611.3 601.9 604.3
Return on invested capital (ROI), %** 19.2% 19.0% 18.9%
Return on equity (ROE), %** 19.3% 19.0% 18.6%
Interest-bearing debt, EUR million 267.3 282.7 240.7
Net debt, EUR million 264.2 280.6 239.4
Net debt to EBITDA ratio 1.2x 1.4x 1.1x
Gearing, % 76.8% 87.9% 65.8%
Equity ratio, % 43.1% 39.1% 43.7%
Personnel, average during financial year 2,834 3,111 3,077
Personnel, at end of financial year 2,777 3,129 3,005
*Retrospective application of amendment to IAS 19 affecting Sweden and Norway segments**The figures are calculated on a rolling twelve month basis.
Consolidated cash flow statement
65
Appendix
CONSOLIDATED CASH FLOW STATEMENT 4–6/13 4–6/12 1–6/13 1–6/12 1–12/12
(EUR 1,000)
Cash flow from operating activities
Result before taxes 15,248 19,976 30,447 30,646 83,041
Adjustments (depreciation and other non-cash items) 40,976 35,238 60,825 70,234 138,461
Change in working capital −19,998 −13,647 −3,395 −11,453 −25,368
Interest paid −2,427 −3,029 −5,050 −6,291 −12,293
Interest received 828 912 1,307 1,978 3,470
Income tax paid −7,144 −5,253 −14,587 −9,696 −13,325
Net cash generated from operating activities 27,483 34,198 69,547 75,417 173,985
Cash flow of investing activities
Acquisition of subsidiaries, net of cash − −3,558 − −13,595 −13,940
Investment in tangible non-current asset −30,994 −21,432 −59,987 −38,623 −99,177
Investment in intangible non-current assets −1,776 −2,119 −3,533 −9,824 −7,598
Proceeds from sale of tangible and intangible non-current assets (exl. used rental equipment) 69 161 123 267 897
Proceeds from sales of subsidiaries − − 9,200 − −
Loan receivables, increase, decrease and other changes −11 − −1,577 − −
Net cash flow of investing activities −32,712 −26,947 −55,773 −61,776 −119,818
Cash flow from financing activities
Dividends paid −36,618 −30,147 −36,618 −30,147 −30,147
Purchase of treasury shares − − − −2,714 −2,714
Borrowings and repayments of short-term debt (net) −13,610 22,168 −28,173 13,668 5,500
Borrowings and repayments of long-term debt (net) −33,888 192 52,771 5,210 −27,900
Net cash flow of financing activities −84,116 −7,786 −12,019 −13,983 −55,261
Net change in cash and cash equivalents during the financial year −89,344 −535 1,755 −342 −1,094
Cash at the beginning of the period 92,437 2,625 1,338 2,431 2,431
Cash at the end of the period 3,093 2,089 3,093 2,089 1,338
Segment information: Net sales
66
Appendix
NET SALES 4–6/13 4–6/12 1–6/13 1–6/12 1–12/12
(MEUR)
FINLAND
- Net sales (external) 36.2 41.0 71.2 78.9 165.0
- Inter-segment sales 0.2 0.5 0.3 0.9 1.5
SWEDEN
- Net sales (external) 53.2 49.8 103.1 97.9 207.5
- Inter-segment sales − 1.2 0.3 1.2 2.4
NORWAY
- Net sales (external) 38.8 38.1 76.9 81.8 173.6
- Inter-segment sales − − − 0.1 0.5
DENMARK
- Net sales (external) 11.2 11.2 20.3 21.0 44.6
- Inter-segment sales − − − − 0.1
EUROPE EAST
- Net sales (external) 7.6 15.0 17.3 27.0 63.0
- Inter-segment sales − − − 0.2 0.3
EUROPE CENTRAL
- Net sales (external) 13.9 14.8 24.9 27.6 60.4
- Inter-segment sales 0.2 0.5 0.2 1.0 2.3
Elimination of sales between segments −0.4 −2.2 −0.8 −3.4 −7.1
NET SALES, TOTAL 160.8 169.7 313.6 334.1 714.1
Other operating income 0.5 0.6 11.7 1.0 3.0
Segment information: EBIT and EBIT-margin
67
Appendix
EBIT 4–6/13 4–6/12 1–6/13 1–6/12
Restated*
1–12/12
(MEUR)
FINLAND 5.8 7.0 8.9 12.0 30.2
% of net sales 15.8% 17.0% 12.4% 15.0% 18.2%
SWEDEN 8.9 8.6 15.6 15.1 33.3
% of net sales 16.8% 16.9% 15.1% 15.3% 15.9%
NORWAY 7.3 5.4 11.7 9.3 22.2
% of net sales 18.9% 14.2% 15.2% 11.4% 12.8%
DENMARK −0.1 0.2 −1.5 0.0 1.6
% of net sales −0.5 % 2.0 % −7.5 % 0.1 % 3.6 %
EUROPE EAST 0.0 1.6 11.0 1.5 10.9
% of net sales 0.3 % 10.8 % 63.7 % 5.7 % 17.3 %
EUROPE CENTRAL 0.3 0.1 −4.9 −2.1 −1.6
% of net sales 2.1 % 0.9 % −19.6 % −7.3 % −2.5 %
Net items not allocated to operating
segments −1.3 −0.4 −1.7 −0.8 −4.2
GROUP EBIT 21.0 22.7 39.0 35.1 92.5
% of net sales 13.0 % 13.4 % 12.4 % 10.5 % 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 [email protected]
Jonas Söderkvist, CFO and EVP Corporate Functions+358 20 750 [email protected]
Franciska Janzon, IR+358 20 750 [email protected]