Ramirent s Year Kari Kallio, CEO Annual General Meeting 9 April 2008, Pörssisali

Transcription

1 Ramirent s Year 2007 Kari Kallio, CEO Annual General Meeting 9 April 2008, Pörssisali

2 Ramirent in Brief Leading equipment rental company in Northern, Central and Eastern Europe Net Sales of EUR 634 million (2007) More than 3,600 employees. Network of 340 rental outlets in 13 countries More than 100,000 customers More than 200,000 rental units Founded in 1955 and listed the OMX Nordic Exchange Helsinki since 1998 Headquartered in Finland Ramirent

3 General Rental Company Formworks Modules Scaffolding Lifts and Hoists Power and Heating Tower Cranes Ramirent Light Equipment Heavy Equipment

4 Lifts Modules Tower cranes Scaffolding Formworks More than 200,000 Rental units Light Machinery Heavy equipment Electricity & Heating Ramirent

5 One Stop Shop supplier to wide customer base Suppliers Outlet Network Customers Lifts and hoists Tower cranes Heavy equipment Modules Formworks Light equipment Scaffolding Power and heating Other One stop shop Construction Companies Industry Infrastructure Public Households Czech Rep Ramirent

6 Presence in 13 countries Local head office Outlet Ramirent

7 Market Position Segments Sales 2007 (MEUR) Employees Outlets Market Position Finland Sweden Norway Denmark Europe* , Group , Ramirent *Ramirent Europe: Russia Estonia Latvia Lithuania Poland Hungary Ukraine Czech Republic (Slovakia as of 2008)

8 Profitable growth continued Compound annual growth rate : 39% MEUR Acquisition of Bautas & Stavdal Acquisition of Altima & Treffco Entry in Czech Republic, acquisitions in Sweden and Poland Acquisition in Poland and Hungary 30 % 25 % 20 % 15 % 10 % 100 Start of growth strategy 5 % Finland Sweden Norway Denmark Europe EBIT,% 0 % Ramirent

9 Full year 2007 highlights Profitable growth continued- EPS increased by 40% Net sales +27.4% to MEUR (497.9) Operating profit (EBIT) +42.8% to MEUR (110.3) EBIT-margin improved to 24.8% (22.2%) Profit before taxes (EBT) +41.6% to MEUR (102.9) Earnings per share (diluted) +39.7% to EUR 1.02 (0.73) Capital expenditure was MEUR (176.5) Net debt MEUR (186.3); Gearing stable at 69.2% (70.3%) ROI was 31.7% (28.1%) and ROE was 36.4% (34.3%) The Board proposes a dividend of EUR 0.50 (0.30) per share Ramirent

10 A strong year in Finland MEUR 1-12/ /06 Change Net sales % EBIT ) % EBIT-margin 26.1% 24.5% 1) Excluding non-recurring profit amounting to 2.4 MEUR realised in Q2/07 from divestment of properties Sales by quarters EBIT (% of sales) % 30 % 33,2 % 31,9 % 32,2 % % 20 % 15 % 23,9 % 23,6 % 22,8 % 20,5 % 16,8 % 13,1 % 23,9 % 23,0 % 16,3 % % 5 5 % Ramirent 0 Q1 Q2 Q3 Q4 0 % Q1 Q2 Q3 Q4 Acquisitions from 2006 accounted for 6% of net sales increase. Strong net sales increase in construction, shipyards and industrial projects. Minor dependence of the residential market. The penetration is increasing. Ramirent s main markets in Finland are expected to continue to expand in 2008.

11 Clear profit increase in Sweden MEUR 1-12/ /06 Change Net sales % EBIT 1) ) 61.0 % EBIT-margin 23.0% 16.7% 1) Excluding non-recurring profit amounting to 5.4 MEUR realised in Q1/06 from divestment of properties Sales by quarters EBIT (% of sales) % % 20 % 15 % 10 % 26,0 % 24,0 % 20,7 % 20,7 % 19,2 % 19,6 % 14,4 % 12,5 % 11,7 % 11,8 % 7,9 % % 3,0 % 0 Q1 Q2 Q3 Q Ramirent 0 % Q1 Q2 Q3 Q4 Strong profit improvement due to better capacity utilization, new products, customer groups and enhanced network. Major two-year agreement for Boliden s copper mine expansion signed. Acquisition of Tidermans in November 2007 adds 4 outlets in Stockholm and Uppsala area. Favorable market conditions expected to continue in 2008.

12 Stable improvement in Norway MEUR 1-12/ /06 Change Net sales % EBIT % EBIT-margin 24.6% 22.1% Sales by quarters % 25 % 20 % 15 % EBIT (% of sales) 25,0 % 25,7 % 24,9 % 25,2 % 22,4 % 22,9 % 21,8 % 18,7 % 19,2 % 18,5 % 14,3 % % 9,5 % % 0 Q1 Q2 Q3 Q4 0 % Q1 Q2 Q3 Q4 Overall improvement in operations. Capacity utilization improved during the year. Major agreement for 3-5 years signed with Veidekke. Stable market situation predicted for Ramirent

13 Denmark grew in a tight market MEUR 1-12/ /06 Change Net sales % EBIT % EBIT-margin 17.9% 14.1% Sales by quarters % 25 % 20 % 15 % 10 % 5 % EBIT (% of sales) 24,2 % 18,3 % 17,8 % 17,8 % 17,4 % 14,2 % 12,7 % 11,4 % 10,4 % 8,4 % 6,8 % 1,2 % Q1 Q2 Q3 Q4 0 % Q1 Q2 Q3 Q4 Net sales increased despite slower construction market conditions. Lower share of re-renting of machinery had a positive effect on profits. Improved logistics and widened service offering. Flat growth of the construction market expected in Ramirent

14 Europe continued strong growth MEUR 1-12/ /06 Change Net sales % EBIT % EBIT-margin 28.8% 26.6% Sales by quarters % 35 % 30 % 25 % EBIT (% of sales) 33,60 % 33,50 % 28,70 % 28,90 % 25,70 % 25,60 % 25,40 % 25,40 % 22,70 % % 15 % 10 % 17,50 % 14,80 % 7,10 % 5 5 % 0 Q1 Q2 Q3 Q4 0 % Q1 Q2 Q3 Q4 Fastest growth in Czech Republic, Lithuania, Poland and Russia. Improved market position due to high investments, high utilization and expansion of network. Restructuring in Hungary to adjust for lower demand due to fiscal stabilization. Signs of overheating in the Baltics is being closely monitored. Overall solid growth expected to continue in most of our markets Ramirent

15 Entry into Slovakia Acquisition of a 60% stake in OTS Founded 1973 Sales expectation: > MEUR 10 in employees 40 outlets (of which half franchised) Strong market position in Slovakia Growing construction market Ramirent

16 Construction Output in Ramirent Markets 5 24 Finland 29 5 Norway 23 9 Sweden Estonia 27 5 Denmark Latvia 3 3 Lithuania Russia Poland Czech Rep. 5 4 Slovakia 48 7 Inhabitants (million) Construction Output (billion EUR) Hungary Ukraine Source: Euroconstruct Nov, Ramirent

17 Rental Penetration is increasing 90 % 80 % 70 % 60 % 50 % 40 % 30 % 20 % 10 % 0 % Europe (ex. UK) 2010E Europe (ex. UK) Poland Baltics Finland Norway Denmark Sweden UK Penetration rate measured as machinery sold directly to rental companies as percentage of total machinery sales Source: International Rental News/ Kaplan Ramirent

18 All financial targets fulfilled Target EPS (diluted), EUR EPS change, % > 15% ROI, % > 18% Dividend per share, EUR Dividend payout ratio, % > 40% Ramirent

19 Net debt and gearing MEUR Equity and equity ratio MEUR % 100 % 80 % 60 % 40 % 20 % 0 % % 46 % 45 % 44 % 43 % 42 % 41 % 40 % 39 % 38 % Net debt (1-12) Gearing (%) Equity Equity ratio (%) Ramirent

20 Dividend payout ratio MEUR % 80 % 70 % 60 % 50 % 40 % 30 % 20 % 10 % * Dividends Payout ratio, % Target >40% 0 % *Note! Board proposal Ramirent

21 Share price development 23, EUR , , , , , , , Ramirent Turnover Ramirent Sector OMX Helsinki Portfolio

22 10 Largest shareholders Number of shares % of share capital 1. Nordstjernan AB 22,349, Oy Julius Tallberg Ab 11,427, Varma Mutual Pension Insurance Company 7,918, Ilmarinen Mutual Pension Insurance Company 2,372, Odin Norden 2,018, Odin Finland 1,217, Odin Europa SMB 959, The State Pension Fund 920, Etera Mutual Pension Insurance Company 842, Veritas Pension Insurance Company Ltd. 780, Total 10 largest shareholders 1) 50,806, Nominee-registered shareholders 37,242, Other shareholders 20,650, Total ) As per 31 March, Ramirent

23 2008 Outlook Overall market conditions are expected to remain favorable in 2008, but with lower growth rates and increasing uncertainty regarding the market outlook. In the Nordic countries, the outlook in the business premise and infrastructure sectors remains favorable, although a slow-down is expected in the residential housing sector. In Central and Eastern Europe, Ramirent expects the strong demand in the construction market to continue in most of its markets, but the risks of overheating and imbalances have increased in some countries. As rental penetration rates are increasing, Ramirent estimates that the machinery rental markets will grow faster than the construction markets. Ramirent will continue to invest in new fleet capacity and search for suitable bolt-on acquisitions to support profitable growth. For the full-year 2008, Ramirent expects to fulfill its financial targets Ramirent

24 Thank you! Contact information CEO Kari Kallio, Contact by Ramirent