ADVANCING OPERATIONAL IMPROVEMENT AGENDA IN MIXED MARKET ENVIRONMENT

Transcription

1 Financial Statements Bulletin 2014 Q4 ADVANCING OPERATIONAL IMPROVEMENT AGENDA IN MIXED MARKET ENVIRONMENT 12 February 2015 Magnus Rosén, President and CEO Jonas Söderkvist, CFO and EVP Corporate Functions 2015 Ramirent

2 Agenda Group performance Segment review Market outlook Key figures Financial position Company overview Appendix 2014 Ramirent 2

3 Strong cash flow in the fourth quarter Key figures Q4/2014 Net sales down by 4.1% or by 1.6% at comparable exchange rates EBITA 14.5 (20.9) MEUR or 9.0% (12.5%) of net sales EBITA excl. non-recurring items 18.2 (20.9) MEUR or 11.4% (12.5%) of net sales The non-recurring items include restructuring costs and asset write-downs of -3.7 (0.0) MEUR Business performance Restructuring and asset write-downs burdened profitability especially in Finland, Sweden and Europe Central Cost reduction measures continued and we held back on investments in the rental fleet and delivered a strong free cash flow Market situation Increased geopolitical uncertainty and slow economic growth in our main markets combined with the rapid decline in oil price impacted negatively on net sales 2014 Ramirent 3

4 Advancing operational improvement agenda in mixed market environment Key figures 1-12/2014 Net sales down by 5.2%; adjusted for transferred or divested operations, net sales were down by 0.6% at comparable exchange rates EBITA 65.8 (92.1) MEUR or 10.7% (14.2%) of net sales EBITA excl. non-recurring items 1) and adjusted for transferred or divested operations 71.5 (83.6) MEUR or 11.7% (13.1%) of net sales Non-recurring items 1) incl. restructuring costs and asset write-downs of -5.7 (8.5) MEUR Business performance Cost reductions and efficiency improvements were carried out in all segments Profitability strengthened in the Baltics and Europe Central Market situation Weaker than expected recovery in the Nordic construction sector impacted negatively on the demand for equipment rental We saw growth in Sweden, while the demand picture remained weak in Finland reflecting increased geopolitical uncertainty 1) Non-recurring items include restructuring costs of EUR 1.9 million in the third quarter 2014 and EUR 3.7 million of restructuring costs and asset write-downs in the fourth quarter The comparison period included a non-taxable capital gain of EUR 10.1 million from the formation of Fortrent in the first quarter 2013, a EUR 1.9 million loss from disposal of Hungary as well as EUR 1.5 million of restructuring costs in Denmark in the third quarter of Ramirent 4

5 The Board proposes an ordinary dividend of EUR 0.40 per share and authorisation to decide on payment of an additional dividend of up to EUR 0.60 per share Earnings Per Share and Dividend Per Share * EPS DPS The Board proposes to the AGM that a dividend of EUR 0.40 (0.37) per share be paid for the financial year 2014, representing a 132% (74%) payout ratio for 2014 The Board decided not to utilise its authorisation to pay an additional dividend based on the financial statements 2013, but proposes to the AGM 2015 to be authorised to decide at its discretion on the payment of an additional dividend up to the amount of EUR 0.60 per share *Board's proposal 2014 Ramirent 5

6 Fourth-quarter net sales impacted by geopolitical uncertainty and slow economic growth in main markets Change in net sales Q4/2014 6% 4% 2% Net sales (MEUR) 1-12/ % -1.6% 400-2% -4.1% % 200-6% Q4/2014 reported Q4/2014 at comparable exchange rates /2013 reported 1-12/2014 reported Fourth-quarter net sales down by 4.1% or by 1.6% at comparable exchange rates Increased geopolitical uncertainty and slow economic growth in our main markets, combined with the rapid decline in oil price, impacted negatively on net sales Full-year 2014 net sales down by 5.2%; adjusted for transferred or divested operations, net sales decreased by 0.6% at comparable exchange rates Net sales (647.3) MEUR in 1-12/ Ramirent 6

7 Fourth-quarter EBITA affected by restructuring costs and asset write-downs EBITA margin Q4/2014 EBITA margin 1-12/ % 20% 18% 18% 16% 16% 14% 14% 12% 12% 10% 10% 8% 6% 4% 12.5% 9.0% 11.4% 8% 6% 4% 14.2% 2) 10.7% 13.1% 11.7% 2% 2% 0% Q4/2013 reported Q4/2014 reported Q4/2014 excl. nonrecurring items 0% 1-12/2013 reported 1-12/2014 reported 1-12/2013 excl. nonrecurring items 1-12/2014 excl. nonrecurring items The non-recurring items booked in the fourth quarter consisted of 2.4 MEUR arising from restructuring costs and 1.3 MEUR from asset write-downs Full-year 2014 non-recurring items 1) 5.7 MEUR arising from restructuring costs, asset writedowns 1) Non-recurring items include restructuring costs of EUR 1.9 million in the third quarter 2014 and EUR 3.7 million of restructuring costs and asset write-downs in the fourth quarter ) The comparison period included a non-taxable capital gain of EUR 10.1 million from the formation of Fortrent in the first quarter 2013, a EUR 1.9 million loss from disposal of Hungary as well as EUR 1.5 million of restructuring costs in Denmark in the third quarter of Ramirent 7

8 Acquisitions and new co-operation agreements in the fourth quarter Veidekke renewed its co-operation agreement with Ramirent in Norway for a new three-year period Hartela Oy outsourced its fleet of tower cranes and signed a five-year co-operation agreement with Ramirent in Finland Ramirent strengthened its position in the Eastern parts of Finland by acquiring the business operations of Savonlinnan Rakennuskonevuokraamo Oy, the leading machine rental company in Eastern Finland After the end of the review period Skanska's internal machinery department, Skanska Maskin AB, signed a three-year equipment rental agreement Ramirent with and Ramirent Zeppelin Sweden Rental announced successful closing of their Joint venture formation, Fehmarnbelt Solutions Service A/S The agreement covers the whole assortment of both companies, from light and heavy machinery to modules and cranes 2014 Ramirent 8

9 New integrated management structure to increase synergies and strengthen capability to execute the company's strategy President and CEO Magnus Rosén CORPORATE FUNCTIONS CFO and EVP Jonas Söderkvist Marketing, Communications, IR SVP Franciska Janzon Human Resources, Health and Safety SVP Peggy Hansson IT SVP and CIO Mats Munkhammar SCANDINAVIA Magnus Rosén Sweden and Denmark SVP Erik Alteryd Norway SVP Øyvind Emblem (from 1 April 2015) NORTH CENTRAL EUROPE EVP Anna Hyvönen Finland Anna Hyvönen Baltic SVP Heiki Onton Europe Central SVP Mikael Kämpe SOURCING AND FLEET MANAGEMENT EVP Dino Leistenschneider *Ramirent renewed its management structure on 23 January **Ramirent will continue to report financial results according to the segments Finland, Sweden, Norway, Denmark, Europe East and Europe Central Ramirent 9

10 Our long-term strategic objectives are still valid Customer first through NextRamirent More Proactive More Competent More Conscious More Safe & Green More Efficient Realised synergies of scale and scope while maintaining local accountability One company Sustainable profitable growth Agility in managing business Through a diversified business portfolio Geographies Products Customers Competences Leading and most profitable general rental company in markets where present, growing in selected growth pockets 2014 Ramirent 10

11 Activities related to our efficiency programme will continue in 2015 Improvement actions to continue in these areas Actions completed in 2014 Sales and pricing Developing the network and customer care model Revenue management Promoting services and integrated solutions New organisational model for Customer Centre Sales and Solutions Sales introduced in Sweden, Denmark and Norway Fleet management Sourcing Developing logistics and maintenance & repair processes Optimisation of fleet life-cycle Developing support processes and systems Optimisation of sourcing terms and supplier portfolio Concentration of repair & maintenance operations to few locations in the Nordic countries Outsourced yard & storage operations in Finland Compliance increased in usage of approved suppliers in all countries Increase in number of Groupwide supplier agreements The identified efficiency actions are planned to deliver a Group EBITA margin of 17% Other Common system platform and performance management model Developing efficient back-office functions New management structure New rental system live in Sweden, Denmark and Norway Integration of back-office functions between Denmark and Sweden Personnel reductions due to restructuring 2014 Ramirent 11

12 Group performance Segment review Market outlook Key figures Financial position Company overview Appendix 2014 Ramirent 12

13 Finland Q4/2014: Profitability was impaired by restructuring of operations and pricing pressure Highlights Q4/2014 Net sales (MEUR) Net sales up by 0.1% Regions South and Central contributed to net sales compared to the previous year, while other regions were negatively impacted by continued low activity in the construction sector Restructuring costs and asset writedowns of EUR 1.5 million were booked in the fourth quarter Q Q2 Q3 Q4 Key figures EBITA margin KEY FIGURES (MEUR) Q4/14 Q4/13 Change FY2014 FY2013 Change 30% Net sales % % EBITA 3.6 1) % ) % 25% 20% 15% 18.3% 15.7% EBITA margin excl. nonrecurring items 13.2% % of net sales 9.2% 1) 15.7% 13.6% 1) 16.9% Capex % % 10% 5% 9.2% 1) Personnel % % Customer centres % % 0% Q Q2 Q3 Q4 1) EBITA excluding non recurring items was EUR 5.1 million or 13.2% of net sales in October December 2014 and EUR 22.3 million or 14.6% of net sales in January December The non recurring items included EUR 1.5 million of restructuring costs and asset write-downs booked in the fourth quarter of Ramirent 13

14 Sweden Q4/2014: Favourable demand for equipment rental Highlights Q4/2014 Net sales (MEUR) Net sales up by 4.1% or by 9.0% at comparable exchange rates Sales growth driven by favourable demand in large construction projects and strong demand in the capital city region Restructuring costs of EUR 0.7 million were booked in the fourth quarter Q Q2 Q3 Q4 Key figures KEY FIGURES (MEUR) Q4/14 Q4/13 Change FY2014 FY2013 Change Net sales % % EBITA 9.5 1) % ) % EBITA margin 25% 20% 17.6% 15% 21.0% EBITA margin excl. nonrecurring items 18.5% 17.3% 1) % of net sales 17.3% 1) 21.0% 14.6% 1) 17.6% 10% Capex % % 5% Personnel % % Customer centres % % 0% Q Q2 Q3 Q4 1) EBITA excluding non recurring items was EUR 10.2 million or 18.5% of net sales in October December 2014 and EUR 30.1 million or 14.9% of net sales in January December The non recurring items included EUR 0.7 million of restructuring costs booked in the fourth quarter of Ramirent 14

15 Norway Q4/2014: Cost reductions bearing fruit Highlights Q4/2014 The rapid decline in oil prices led to cautiousness regarding new investments in the Norwegian oil and gas sector and wider economy Net sales (MEUR) Net sales down by 16.9% or by 13.5% at comparable exchange rates 33.9 Cost reductions implemented during the year lowered the fixed cost base in the fourth quarter 10 0 Q Q2 Q3 Q4 Key figures EBITA margin KEY FIGURES (MEUR) Q4/14 Q4/13 Change FY2014 FY2013 Change Net sales % % EBITA 3.2 1) % ) % 25% 20% 15% 13.9% EBITA margin excl. nonrecurring items 10.1% % of net sales 9.4% 6.9% 10.3% 2) 14.3% 10% 9.4% 1) Capex % % Personnel % % Customer centres % 0% Q % 2014 Q2 Q3 Q4 1) EUR 0.2 million of restructuring costs were booked in the fourth quarter of ) EBITA excluding non recurring items was EUR 16.2 million or 11.9% of net sales in January December The non recurring items included EUR 2.2 million of restructuring costs booked in the second half of the Ramirent 15

16 Denmark Q4/2014: Further integration of operations with Sweden continued Highlights Q4/2014 Net sales (MEUR) Net sales down by 10.2% or by 10.4% at comparable exchange rates Despite improving underlying demand, net sales development was unsatisfactory due to organisational changes and integration of operations with the Swedish business The tough competitive environment has led to further pressure on the price level Q Q2 Q3 Q4 Key figures EBITA margin KEY FIGURES (MEUR) Q4/14 Q4/13 Change FY2014 FY2013 Change Net sales % % EBITA 0.9 1) % ) 8.3% % of net sales 8.9% 6.2% 10.0% 9.7% 2) Capex % % Personnel % % Customer centres % 5% 0% -5% -10% -15% -20% -25% Q % % Q2 Q3 Q4-8.9% 1) EBITA margin excl. nonrecurring items -7.7% 1) EUR 0.1 million of restructuring costs were booked in the fourth quarter of ) EBITA excluding non recurring items was EUR 2.8 million or 6.3% of net sales in January December The non-recurring items included EUR 1.5 million of restructuring costs in the third quarter of Ramirent 16

17 Europe East Q4/2014: Strong performance in the Baltics Highlights Q4/2014 Net sales (MEUR) Demand was most favourable in Latvia and Lithuania in the fourth quarter Profitability strengthened mainly as a result of increased net sales and strict cost control in the Baltics Fortrent recognised an impairment loss of EUR 0.5 million on all goodwill related to its Ukrainian operations 3) Q Net sales up by 9.4% 9.2 Q2 Q3 Q4 Key figures EBITA margin KEY FIGURES (MEUR) Q4/14 Q4/13 Change FY2014 FY2013 Change Net sales % % 1) EBITA % ) 61.6% 40% 35% 30% 25% 113.5% 2) 28.9% 32.6% The Baltics 27.0% % of net sales 22.7% 32.6% 19.6% 48.8% 2) 20% 15% 20.1% 22.7% Capex % % 10% Personnel % % 5% Customer centres % % 0% -5% Q Q Q3 Q4 1) Adjusted for the transfer of the Russian and Ukrainian operations to Fortrent as of 1 March 2013 the increase in net sales in January December 2014 was 9.5%. 2) EBITA excluding non recurring items and EBITA from Russia and Ukraine was EUR 6.0 million or 19.3% of net sales in January December The non recurring items included the non taxable capital gain of EUR 10.1 million from the formation of Fortrent recorded in the first quarter of ) Fortrent recognised an impairment loss on all goodwill related to its Ukrainian operations in the fourth quarter. The impairment had a negative effect of EUR 0.3 million on Ramirent Group Ramirent 17

18 Europe Central Q4/2014: Profitability improving in the Czech and Slovakian operations Highlights Q4/2014 Lack of new projects especially in Central Poland burdened net sales, while demand developed favourably in North and South Net sales grew in the Czech Republic and Slovakia as a result of successful sales efforts and recovering demand Restructuring costs and asset write-downs of EUR 1.1 million were booked Key figures KEY FIGURES (MEUR) Q4/14 Q4/13 Change FY2014 FY2013 Change Net sales % % 1) EBITA 0.5 2) % 1.7 2) 0.7 3) 340.6% % of net sales 3.9% 2) 0.4% 3.2% 2) 1.2% 3) Capex % % Personnel % % Customer centres % % Net sales (MEUR) % 15% 10% 5% 0% -5% -10% -15% -20% -25% Q Q EBITA margin 2.2% % 2014 Net sales down by 10.0% or by 9.0% at comparable exchange rates 13.8 Q2 Q3 Q4 EBITA margin excl. nonrecurring items 11.9% Q2 Q3 Q4 3.9% 1) 1) Adjusted for the divestment of the Hungarian business the increase in net sales in January December 2014 was 1.2%. 2) EBITA excluding non recurring items was EUR 1.6 million or 11.9% of net sales in October December 2014 and EUR 2.8 million or 5.3% of net sales in January December The non recurring items included EUR 1.1 million of restructuring costs and asset write-downs booked in the fourth quarter of ) EBITA excluding non recurring items and EBITA from Hungary was EUR 0.7 million or 1.2% of net sales in January December The non-recurring items included the EUR 1.9 million loss from disposal of Hungarian operations, recorded in the third quarter Ramirent 18

19 Group performance Segment review Market outlook Key figures Financial position Company overview Appendix 2014 Ramirent 19

20 Euroconstruct forecasts total Nordic construction market to grow by 2.6% in 2015 Construction output growth estimates for 2015 Nordic countries 2015E Finland 1.5% Sweden 1.3% Norway 3.9% Denmark 2.9% Total Nordic 2.6% Baltic countries and Europe Central 2015E Estonia -4.0% Latvia -4.0% Lithuania 1.0% Poland 7.1% The Czech Republic 2.5% Slovakia 1.8% 2014 Ramirent 20 Source: Euroconstruct 11/2014

21 Infrastructure and non-residential construction expected to be primary drivers of growth in 2015 Construction output by sector E (index) Index Total Nordic construction output 2015E: +2.6% Infrastructure construction % +0.5% +2.3% +3.0% New residential construction Renovation* New nonresidential construction E New residential construction New non-residential construction Renovation* Total Nordic construction output Infrastructure construction *Renovation includes residential and non-residential renovation Source: Euroconstruct 11/ Ramirent 21

22 ERA forecasts equipment rental markets to recover in 2015 Equipment rental market growth estimates for 2015E (%) 6.0% 5.3% 5.0% 4.0% 3.5% 3.0% 2.6% 2.0% 2.1% 1.8% 1.0% 1.1% 0.0% Finland Sweden Norway Denmark Poland Total Europe 2014 Ramirent 22 Source: ERA (European Rental Association) 11/2014

23 Nordic construction order books including NCC, YIT, Lemminkäinen and SRV increased by 7.4% at comparable exchange rates Nordic construction companies order books (at comparable exchange rates) billion % 40% 20% 0% Fourth-quarter nordic construction order books incl. NCC, YIT, Lemminkäinen and SRV increased by 7.4% at comparable exchange rates compared to the previous year Ramirent's net sales were down by 5.2% in Q1 Q2 Q NCC Lemminkäinen YIT* SRV Q4-20% -40% Adjusted for transferred or divested operations, Ramirent's net sales were down by 0.6% at comparable exchange rates in 2014 Change in Net sales (y-o-y), R12 Ramirent Change in order backlog (y-o-y), Nordic construction *YIT's order book not fully comparable as it includes also order book from the Baltic States, Slovakia and the Czech Republic (change in reporting structure as of Q1/2014) Ramirent 23

24 Ramirent outlook for full year 2015 Ramirent expects the market picture for 2015 to remain mixed, with challenging market conditions in especially Finland and Norway. We expect full-year 2015 net sales and EBITA margin to be similar to the level of 2014 when measured in local currencies.

25 Group performance Segment review Market outlook Key figures Financial position Company overview Appendix 2014 Ramirent

26 EBITA margin excl. non-recurring items (%) Net Sales (MEUR) Profitability improved in Baltics and Europe Central in 2014 Finland Sweden Norway Denmark Baltics Central % 20% 15% 10% 5% 0% -5% -10% Finland Sweden Norway Denmark The Baltics Europe Central 21.2% 16.9% 17.6% 17.4% 14.6% 14.9% 14.3% 11.9% 5.3% 1.2% Finland Sweden Norway Denmark -6.3% The Baltics Europe Central -9.6% 1-12/ /2014 1) 2014 Ramirent 26

27 Fourth-quarter sales were impacted by unfavourable changes in foreign exchange rates and lower sales of used equipment Net sales (MEUR) 180 Breakdown of net sales (MEUR) % 3.1% % 0 Q4/2013 reported Exchange rates Underlying change Q4/2014 reported Weakening of the Swedish krona and Norwegian krone impacted negatively on the net sales in euros The rapid decline in oil prices led to cautiousness in new investments in the Norwegian oil and gas sector Sales of used equipment were clearly below last year's level in the fourth quarter 0 Q4/2013 Q4/2014 Income from sold equipment Ancillary income Rental income 2014 Ramirent 27

28 Ramirent carried out several actions to reduce its fixed cost base in 2014 Customer centres Personnel (FTE) Europe Central 477 Finland 497 Europe East - Baltic 240 Group: 2,576 (2,589) Denmark 147 Norway 388 Sweden 759 Q Q2 Q3 Q4 Finland Sweden Norway Denmark Europe East -Baltics Europe Central Full-year employee benefit expenses Improving efficiency of repair & maintenance operations on-going decreased to (156.8) MEUR Acquisitions have added 155 FTEs to the Group 2014 Ramirent 28

29 Full-year 2014 fixed costs decreased by EUR 14.1 million compared to the previous year Fixed costs (MEUR) and % of Group net sales % % Excl. nonrecurring items 58.2 MEUR or 36.2% of net sales 37.7% 50% 45% 40% 35% 30% 25% Full-year 2014 fixed costs (252.5) MEUR Employee benefit expenses (156.8) MEUR Other operating expenses 88.0 (95.7) MEUR Full-year fixed costs of net sales 38.8% (39.0%) % 15% 10% 5% Fourth-quarter fixed costs 60.6 (61.4) MEUR or 37.7% (36.6%) of net sales Whereof 2.4 MEUR non-recurring 0 0% Q Q2 Q3 Q Ramirent 29

30 Fourth-quarter EBITA margin excluding non-recurring items at 11.4% EBITA margin EBITA margin quarterly 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 12.5% 9.0% 11.4% Q4/2013 reported Q4/2014 reported Q4/2014 excl. nonrecurring items 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% -2% -4% -6% 8.5% 14.6% 15.3% 12.5% 9.0% Q1 Q2 Q3 Q The non-recurring items booked in the fourth quarter consisted of 2.4 MEUR arising from restructuring costs and 1.3 MEUR from asset write-downs Full-year EBITA 65.8 (92.1) MEUR or 10.7% (14.2%) of net sales Full-year EBITA excl. non-recurring items 1) and adjusted for transferred or divested operations was MEUR 71.5 (83.6 2) ) or 11.7% (13.1% 2) ) 1) Non-recurring items include restructuring costs and asset write-downs of EUR 5.7 million in January-December ) Non-recurring items in the comparison period included the non-taxable capital gain of EUR 10.1 million from the formation of Fortrent in the first quarter 2013, the EUR 1.9 million loss from disposal of Hungary as well as EUR 1.5 million of restructuring costs in Denmark in the third quarter of Transferred and divested operations included Russia, Ukraine and Hungary Ramirent 30

31 Full-year 2014 restructuring costs and asset writedowns amounted to EUR 5.7 million EBITA (MEUR) 1-12/13 vs 1-12/ ) ) ) 1) Non-recurring items in 2013: -the loss from disposal Hungary 1.9 MEUR -the non-taxable capital gain from Fortrent transation 10.1 MEUR -Restructuring costs of 1.5 MEUR in Denmark 2) EBITA result from Russia, Ukraine and Hungary in /2013 reported 1-12/2013 excl. non-recurring items /2013 adjusted 1-12/2014 reported 1-12/2014 excl. non-recurring items 14.2% 13.2% 13.1% 10.7% 11.7% EBITA margin 3) Ramirent booked 5.7 MEUR of restructuring costs and asset writedowns in January- December ) Restructuring and asset write-downs by segment: Norway 2.2 MEUR Finland 1.5 MEUR Central 1.1 MEUR Sweden 0.7 MEUR Denmark 0.1 MEUR 2014 Ramirent 31

32 Full-year 2014 EBITA margin excl. non-recurring items was 11.7% 1-12/2014 EBITA margin excl. non-recurring items by segment (%) % Target = 17% % Finland Sweden Norway Denmark Baltics Europe Central Group Group EBITA targeted to reach 17% by delivering at least 18% EBITA margin on segment level 2014 Ramirent 32

33 Investments in the rental fleet were held back in the fourth quarter Gross capital expenditure (MEUR) and % of net sales % 50% Fourth-quarter gross capex 19.0 (33.8) MEUR of which 2.0 (2.7) MEUR related to acquisitions % 30% 20% Full-year 2014 gross capex (125.8) MEUR of which 48.2 (2.7) MEUR related to acquisitions % 20.2% % 10% 0 Q Q2 Q3 Q4 0% Gross Capex Share of net sales-% 2014 Ramirent 33

34 Fourth-quarter capital expenditure was significantly reduced in Norway Capital expenditure by segment (MEUR) Investments in the fleet Central Q4/14 Q4/13 Fourth-quarter investments in machinery and equipment 13.9 (30.0) MEUR East Full-year 2014 investments in machinery and equipment (115.3) MEUR Committed investments on rental machinery at the end of the year amounted to 7.4 (4.8) MEUR Denmark Norway Sweden Finland Ramirent 34

35 Strong cash flow generation in the fourth quarter Cash flow after investments (MEUR) Cash conversion (MEUR and %) Q Q2 Q3 Q % 80% 60% 40% 20% 0% -20% EBITDA (MEUR) Cashflow after investments (MEUR) Cash Conversion -40% -60% The Group s cash flow from operating activities was 53.7 (55.5) MEUR in the fourth quarter Cash flow from investing activities was 21.1 ( 30.3) MEUR Full-year 2014 cash flow after investments 21.8 (73.4) MEUR 2014 Ramirent 35

36 Return on investment at 12.2% at the end of 2014 Return on investment % 18% ROI % and Invested capital MEUR % 16% 14% % % 12% 10% % 16.5% 15% 8% 16.5% % 10% 6% 12.2% % 4% 2% 100 5% 0% 0 Q1 Q2 Q3 Q4 0% Q4/2013 Q4/ Rolling 12 months ROI at the end of 2014 was 12.2% (16.5%) The Group's invested capital decreased to (579.8) MEUR in the fourth quarter Return on investment decreased compared yearon-year mainly due to lower profit generation 2014 Ramirent 36

37 Return on equity at 9.4% at the end of 2014 Return on equity % ROE % and Total equity (MEUR) 20% % 18% 16% 14% 12% % 18.6% 14.7% % Target 18% 15% 10% % 10% 8% 6% 4% 2% 14.7% 9.4% % 5% 0% 0% Q4/2013 Q4/ Q Q2 Q3 Q % Rolling 12 months ROE at the end of 2014 was 9.4% (14.7%) Long-term financial target: ROE of 18% over a business cycle The Group's total equity amounted to MEUR (371.0) at the end of December Equity per share was 3.01 (3.44) at the of December 2014 Ramirent 37

38 Group performance Segment review Market outlook Key figures Financial position Company overview Appendix 2014 Ramirent 38

39 Net debt to EBITDA ratio below the long-term financial target Net debt (MEUR) 300 Net debt to EBITDA ratio x 1.4x Target max. 1.6x 1.4x x 1.1x Q Q2 Q3 Q4 0.0 Q Q2 Q3 Q4 Net debt to EBITDA 1.4x (1.1x) at the end of Net debt (206.9) MEUR at the end of 2014 Net debt increased by 9.7% (y-o-y) December, which was below Ramirent's longterm financial target of maximum 1.6x at the end of each fiscal year 2014 Ramirent 39

40 Equity ratio at 43.7% and gearing at 69.9% Equity ratio (%) Gearing (%) 60% 90% 50% 48.9% 43.7% 80% 70% 69.9% 40% 60% 55.8% 30% 50% 40% 20% 30% 10% 20% 10% 0% Q Q2 Q3 Q4 0% Q Q2 Q3 Q4 Fourth-quarter equity ratio decreased to 43.7% (48.9%) Total equity amounted to (371.0) MEUR at the end of 2014 Fourth-quarter gearing increased to 69.9% (55.8%) Net debt MEUR (206.9) at the end of Ramirent 40

41 Working capital was above previous years' level at the end of 2014 Working capital (MEUR) Q Q2 Q3 Q Working capital / Rolling 12 months net sales 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 4.5 % 4.4 % 5.3 % 2.5 % 4.7 % Trade payables and other liabilities Trade and other receivables Inventories 0.0% -2.0% -4.0% -6.0% Q1 Q2 Q3 Q Credit losses and change in the allowance for bad debt: Q4/2014: -0.9 (-1.5) MEUR 1-12/2014: -3.4 (-4.7) MEUR Working capital of rolling 12 months net sales 4.7% (2.5%) at the end of December 2014 Dividend of 39.9 (36.6) MEUR paid in April Ramirent 41

42 At the end of 2014, Ramirent had unused committed back up loan facilities of EUR million Repayment schedule of interest-bearing liabilities (MEUR) EUR million in committed credit facilities Net debt EUR million Ramirent had unused committed backup loan facilities of MEUR available at the end of the 2014 The average interest rate of the loan portfolio including interest rate hedges was 3.1% (3.9%) at the end of the Senior unsecured bond In addition to bank facilities, Ramirent is utilising a domestic commercial paper program of up to EUR 150 million Ramirent 42

43 Two of our long-term financial targets were met in 2014 STATED OBJECTIVES Element Measure Target level 1-12/2014 Profit generation ROE 18% p.a. over a business cycle 9.4% Leverage and risk Net Debt / EBITDA ratio Below 1.6x at the end of each fiscal year 1.4x Dividend Dividend pay-out ratio At least 40% of Net profit 132% of 2014 net profit 2014 Ramirent 43

44 For further information: Magnus Rosén, President and CEO, tel Jonas Söderkvist, CFO, tel Franciska Janzon, IR, tel

45 Group performance Segment review Market outlook Key figures Financial position Company overview Appendix 2014 Ramirent 45

46 Ramirent is a generalist equipment rental and service company Definition of Ramirent's business and strategic choices How Concept Ramirent is a generalist rental company, with an extensive customer centre network enabling customer proximity while managing through decentralised operations What Offering Ramirent s business offering stretches from single products to managing the entire fleet capacity at a customer site Who Customers Ramirent s diverse customer base includes construction, industry, services, the public sector and private households Where Geographic presence Home market Europe with focus on the Baltic Rim 302 customer centres in 10 countries 2,576 employees serving 200,000 customers with 200,000 rental items MEUR 614 of sales (2014) 2014 Ramirent 46

47 Our strategic choices Vision To be the leading and most progressive equipment rental solutions company in Europe, setting the benchmark for industry performance and customer service Mission We simplify business by delivering Dynamic Rental Solutions TM Values Open Engaged Progressive Brand promise More than Machines 2014 Ramirent 47

48 Strong market position in core Baltic Rim markets Sales per segment 1-12/2014 Denmark 6% Europe Central 9% Europe East - Baltics 6% Finland 25% Norway # 1 43 customer centres Finland # 1 66 customer centres Norway 22% Sweden 33% Denmark # 1 16 customer centres Sweden # 2 77 customer centres Europe Central (PL+CZ+SL) # 1 58 customer centres Europe East Baltics # 2 42 customer centres Sales per customers 1-12/2014 Industrial 17% Services & Retail 13 % Public 4% Private 2% Construction 63% Fehmarnbelt Solutions Services A/S, JV with Zeppelin Rental Russia and Ukraine presence through JV Fortrent Current state close to target of 40% non-construction dependent sales 2014 Ramirent 48

49 One of the leading equipment rental companies both in Europe (#3) and globally (#10) Largest rental companies in Europe Net sales 2014 (MEUR) Largest rental companies globally Net sales 2014 (MEUR) Loxam* Cramo United Rentals Aggreko* Ramirent Algeco Scotsman* Kiloutou* Sarens* Speedy Hire* 614 Ashtead Group* Algeco Scotsman* Herz Equipment Rental* Aktio Corp* Loxam* Liebherr- Mietpartner* Mediaco Levage* Zeppelin Rental* Coates Hire* Cramo Ramirent *Net sales in 2013 *Net sales in 2013 Event / Name of presentor 2014 Ramirent 49

50 Ramirent combines the best equipment, services and knowhow into integrated rental solutions Equipment Services Rental Business and Sector Knowledge 10% Heavy Equipment Planning Construction Mining 35% 22% Access Equipment Lifts, Hoists, Scaffolding, Tower cranes Modules and site equipment On-site services Logistics Merchandise sale Rental insurance Paper Power generation Oil & Gas Shipyards Integrated Solutions 32% Light Equipment Tools, power and heating equipment Training Retail & Service Public sector Share of Group equipment rental income (1-12/2014) 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 Households Benefits Understanding customer requirements helps to customise product selection and further improve productivity Benefits Easy to buy, reduced number of subcontractors, increased focus on the core business 2014 Ramirent 50

51 Our offering MACHINERY AND EQUIPMENT SERVICES PLANNING ON-SITE SERVICES ACCESS EQUIPMENT HEAVY MACHINERY LOGISTICS RENTAL INSURANCE MODULE AND SITE EQUIPMENT LIGHT EQUIPMENT TRAINING ACCESSORIES SOLUTION AREAS Ramirent SpaceSolve TM Ramirent SafeSolve TM Ramirent EcoSolve TM Ramirent PowerSolve TM Ramirent ClimateSolve TM Ramirent AccessSolve TM Ramirent TotalSolve TM 51

52 The five components of Ramirent's growth strategy Increased market share Extended customer value proposition Increased penetration M&A Increased footprint New customer segments Growth within current business Increasing services and integrated solutions Outsourcing opportunities Acquisitions, joint ventures and other transactions New geographies 2014 Ramirent 52

53 LOW MEDIUM HIGH Room for rental penetration to further increase in the Nordic countries Equipment rental penetration 2014E (%) 3.5% 2.0% Average penetration in Europe: 1.5% 1.5% 1.7% Rental penetration (%)* Sweden Norway Finland Denmark Source: European Rental Association 11/2014; Rental Turnover / Total construction output 2014 Ramirent 53

54 Ramirent has a proven track record in outsourcing deals and M&A transactions Basis for Norwegian business Basis for Swedish and Danish business Expansion to the Czech Republic, bolt-on acquisitions in Finland and Sweden Entry into Slovakia Acquisitions and outsourcings mainly in the Nordic countries Entry into oil & gas industry in Norway (Rogaland Planbygg) Divestments of formwork business in Finland and the Hungarian operations Fortrent JV with Cramo in Russia & Ukraine Altima AB (tower cranes) Bautas AS (outsourcing) (outsourcing) DCC (outsourcing) Acquisitions in Sweden, Poland and Hungary Acquisitions in the Nordic countries Nine acquisitions and three outsourcings M&A critera Complimentary product ranges or related services Extending geography to "white spots" Strengthening links to new customer segments" Outsourcing of customer's in-house fleets Targets mid-size companies mainly 2014 Ramirent 54

55 Ramirent's Financial Business Model: Three complimentary drivers of value creation Cash Flow Organic Growth Operating Leverage Financial Leverage Volumes Upselling Pricing Fleet management Sourcing Cost structure Quality of earnings Capital Expenditure Cash conversion Capex Working capital Dividend Capital Structure Dividend payout ratio of at least 40% of net profit Net debt/ EBITDA target of below 1.6x (at y/e) Target EBITA margin of 17% ROE target of 18% over the cycle 2014 Ramirent 55

56 Fleet management potential realised at different levels Fleet management activities Optimising fleet maintenance strategy Resourcing and repair & maintenance locations Efficient logistics Optimising workshop processes Goals Customer service level Total costs Nonavailable fleet KPIs Efficiency utilisation* (%) R3 months Total Fleet Yield** (%) R3 months Balanced fleet age structure Capital efficiency Acquisition value of rented fleet ) Efficiency utilisation = Acquisition value of total fleet 100 % ) Total Fleet Yield = Rental income 100 % Acquisition value of total fleet 2014 Ramirent 56

57 Largest shareholders at the end of December 2014 Largest shareholders December 31, 2014 Number of shares % of share capital Market Cap EUR million Shareholders December 31, Nordstjernan AB 31,303, % 32% 16% 2. Oy Julius Tallberg Ab 12,207, % 3. Nordea funds 5,206, % 2% 11% 8% 31% 4. Ilmarinen Mutual Pension Insurance Company 3,945, % 5. Varma Mutual Pension Insurance Company 3,640, % 6. Aktia funds 2,215, % 7. Odin funds 1,151, % Private companies Financial and insurance institutions Public sector organizations Households Non-profit organizations Foreigners 8. Fondita funds 977, % 9. Ramirent Plc 973, % 10. Pensionsförsäkringsaktiebolaget Veritas 807, % Other shareholders 46,248, % Total 108,697, % Trading information Listing: NASDAX Helsinki Date of listing: April 30, 1998 Segment: Mid Cap Sector: Industrials Trading code: RMR1V 2014 Ramirent 57

58 Share price development Index 140 Ramirent Plc (RMR1V) 120 RMR1V 100 Nasdaq Helsinki 80 Nasdaq Helsinki Mid-Cap Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb Ramirent 58

59 How will we deliver on our financial targets and create shareholder value? Company highlights Stated objectives Attractive market - structural growth drivers and cyclical recovery potential Number 1 position - market leader in 7/10 countries Strong platform - above industry average profitability, balanced risk level and increasing operational excellence Growth potential - 5 point growth strategy to capitalise on strong position Financial strength industry leading cash generation and leverage potential to finance growth, drive ROE and increase dividends Proven management track record experienced management has reshaped the company since 2008 Return on equity of 18% over a business cycle YE net debt to EBITDA of below 1.6x Dividend pay-out ratio of at least 40% of net profit EBITA margin of 17% 2014 Ramirent 59

60 Group performance Segment review Market outlook Key figures Financial position Company overview Appendix 2014 Ramirent 60

61 Consolidated statement of income CONSOLIDATED STATEMENT OF INCOME 10 12/ / / /13 (EUR 1,000) Rental income 102, , , ,895 Ancillary income 50,262 51, , ,040 Sales of equipment 7,599 10,845 24,714 28,317 NET SALES 160, , , ,252 Other operating income ,290 12,732 Materials and services 59,787 61, , ,169 Employee benefit expenses 38,018 35, , ,791 Other operating expenses 22,625 25,383 88,003 95,660 Share of result in associates and joint ventures 380 1, Depreciation, amortisation and impairment charges 27,511 27, , ,768 EBIT 12,519 18,977 58,143 82,284 Financial income 3,926 2,608 11,292 15,639 Financial expenses 10,029 8,753 26,974 34,055 Total financial income and expenses 6,103 6,145 15,683 18,415 EBT 6,416 12,832 42,460 63,869 Income taxes 2,164 1,068 10,370 9,839 PROFIT FOR THE PERIOD 4,252 13,900 32,090 54,030 Profit for the period attributable to: Owners of the parent company 4,490 13,900 32,632 54,030 Non-controlling interest ,252 13,900 32,090 54,030 Earnings per share (EPS) on parent company shareholders share of profit Basic, EUR Diluted, EUR Ramirent 61

62 Consolidated statement of financial position CONSOLIDATED STATEMENT OF FINANCIAL POSITION 31/12/ /12/2013 (EUR 1,000) ASSETS NON CURRENT ASSETS Goodwill 139, ,825 Other intangible assets 46,720 38,427 Property, plant and equipment 406, ,232 Investments in associates and joint ventures 5,278 18,524 Non current loan receivables 17,666 20,261 Available for sale investments Deferred tax assets TOTAL NON CURRENT ASSETS 616, ,432 CURRENT ASSETS Inventories 12,431 11,494 Trade and other receivables 109, ,207 Current tax assets 2,775 1,495 Cash and cash equivalents 3,129 1,849 TOTAL CURRENT ASSETS 127, ,045 TOTAL ASSETS 743, , Ramirent 62

63 Consolidated statement of financial position (continued) CONSOLIDATED STATEMENT OF FINANCIAL POSITION 31/12/ /12/2013 (EUR 1,000) EQUITY AND LIABILITIES EQUITY Share capital 25,000 25,000 Revaluation fund 976 1,502 Invested unrestricted equity fund 113, ,568 Retained earnings from previous years 153, ,882 Profit for the period 32,632 54,030 Equity attributable to the parent company shareholders 324, ,978 Non-controlling interest 693 TOTAL EQUITY 324, ,978 NON CURRENT LIABILITIES Deferred tax liabilities 50,798 54,286 Pension obligations 17,491 13,923 Non current provisions 2,371 1,198 Non current interest bearing liabilities 206, ,981 Other non current liabilities 19,890 TOTAL NON CURRENT LIABILITIES 297, ,388 CURRENT LIABILITIES Trade payables and other liabilities 92, ,369 Current provisions 1, Current tax liabilities 3,899 5,278 Current interest bearing liabilities 23,514 33,800 TOTAL CURRENT LIABILITIES 121, ,111 TOTAL LIABILITIES 418, ,499 TOTAL EQUITY AND LIABILITIES 743, , Ramirent 63

64 Key financial figures KEY FINANCIAL FIGURES 10 12/ / / /13 (MEUR) Net sales, EUR million Change in net sales, % 4.1% 13.7% 5.2% 9.4% EBITDA, EUR million % of net sales 24.9% 27.6% 27.4% 30.1% EBITA, EUR million % net sales 9.0% 12.5% 10.7% 14.2% EBIT, EUR million % of net sales 7.8% 11.3% 9.5% 12.7% EBT, EUR million % of net sales 4.0% 7.7% 6.9% 9.9% Profit for the period attributable to the owners of the parent company, EUR million % of net sales 2.8% 8.3% 5.3% 8.3% Gross capital expenditure, EUR million % of net sales 11.8% 20.2% 23.6% 19.4% Invested capital, EUR million, end of period Return on invested capital (ROI), % 1) 12.2% 16.5% Return on equity (ROE), % 1) 9.4% 14.7% Interest bearing debt, EUR million Net debt, EUR million Net debt to EBITDA ratio 1) 1.4x 1.1x Gearing, % 69.9% 55.8% Equity ratio, % 43.7% 48.9% Personnel, average during reporting period 2) 2,566 2,725 Personnel, at end of reporting period 2) 2,576 2,589 1) The figures are calculated on a rolling twelve month basis 2) As of first quarter 2014, reporting of number of personnel was changed to FTE (full-time equivalent) which indicates the number of employees calculated as full time workload for each person employed and actually present in the company. Comparative information has been changed accordingly Ramirent 64

65 Consolidated cash flow statement CONSOLIDATED CASH FLOW STATEMENT 10 12/ / / /13 (EUR 1,000) CASH FLOW FROM OPERATING ACTIVITIES EBT 6,416 12,832 42,460 63,869 Adjustments Depreciation, amortisation and impairment charges 27,511 27, , ,768 Adjustment for proceeds from sale of used rental equipment 3,035 1,272 17,136 8,975 Financial income and expenses 6,103 6,145 15,683 18,415 Adjustment for proceeds from disposals of subsidiaries 15,609 Other adjustments 2,620 13,459 6,140 4,735 Cash flow from operating activities before change in working capital 40,445 34, , ,153 Change in working capital Change in trade and other receivables 9,107 9,996 2,150 18,994 Change in inventories 991 2,298 1,472 3,114 Change in non interest bearing liabilities 8,775 16,693 12,302 5,724 Cash flow from operating activities before interest and taxes 57,336 63, , ,537 Interest paid 598 1,796 10,418 5,270 Interest received ,047 Income tax paid 2,693 5,915 12,646 23,068 NET CASH FLOW FROM OPERATING ACTIVITIES 53,707 55, , , Ramirent 65

66 Consolidated cash flow statement (continued) CONSOLIDATED CASH FLOW STATEMENT 10 12/ / / /13 CASH FLOW FROM INVESTING ACTIVITIES Acquisition of businesses and subsidiaries, net of cash 2,600 2,832 29,872 2,832 Investment in tangible non current asset (rental equipment) 16,326 24,776 88, ,115 Investment in other tangible non current assets ,825 Investment in intangible non current assets 3,324 2,383 9,680 6,503 Proceeds from sale of tangible and intangible non current assets (excluding used rental equipment) , Proceeds from sales of other investments 14,681 Loan receivables, increase, decrease and other changes 588 2,594 1,577 NET CASH FLOW FROM INVESTING ACTIVITIES 21,118 30, , ,812 CASH FLOW FROM FINANCING ACTIVITIES Dividends paid 39,858 36,618 Borrowings and repayments of current debt (net) 34, ,686 49,771 Borrowings of non current debt 2, ,651 99,031 Repayments of non current debt ,354 6,047 85,565 NET CASH FLOW FROM FINANCING ACTIVITIES 32,897 36,489 20,567 72,923 NET CHANGE IN CASH AND CASH EQUIVALENTS DURING THE FINANCIAL YEAR ,270 1, Cash at the beginning of the period 3,436 13,118 1,849 1,338 Translation differences Change in cash ,270 1, Cash at the end of the period 3,129 1,849 3,129 1,849 Presentation of the figures in the consolidated cash flow statement for January June 2014 has been adjusted and consolidated cash flow statement for January December 2014 has been adjusted accordingly. After adjustment the cash flows reflect better the impact of acquired businesses Ramirent 66

67 Net sales NET SALES 10 12/ / / /13 (MEUR) FINLAND - Net sales (external) Inter segment sales SWEDEN - Net sales (external) Inter segment sales NORWAY - Net sales (external) Inter segment sales DENMARK - Net sales (external) Inter segment sales EUROPE EAST - Net sales (external) Inter segment sales EUROPE CENTRAL - Net sales (external) Inter segment sales Elimination of sales between segments GROUP NET SALES Ramirent 67

68 EBITA EBITA 10 12/ / / /13 (MEUR and % of net sales) FINLAND % of net sales 9.2% 15.7% 13.6% 16.9% SWEDEN % of net sales 17.3% 21.0% 14.6% 17.6% NORWAY % of net sales 9.4% 6.9% 10.3% 14.3% DENMARK % of net sales 8.9% 6.2% 10.0% 9.7% EUROPE EAST % of net sales 22.7% 32.6% 19.6% 48.8% EUROPE CENTRAL % of net sales 3.9% 0.4% 3.2% 1.2% Net items not allocated to segments GROUP EBITA % of net sales 9.0% 12.5% 10.7% 14.2% 2014 Ramirent 68

69 January-December 2013 included business in Russia, Ukraine and Hungary Net sales: Group, Russia & Ukraine, Hungary Net sales, MEUR Q1/2013 Q2/2013 Q3/2013 Q4/2013 Q1/2014 Q2/2014 Q3/2014 Q4/2014 Group as reported Russia & Ukraine 4.6 Hungary Group (excl. Russia, Ukraine & Hungary) EBITA: Group, Russia & Ukraine, Hungary EBITA, MEUR Q1/2013 Q2/2013 Q3/2013 Q4/2013 Q1/2014 Q2/2014 Q3/2014 Q4/2014 Group as reported Russia & Ukraine (incl. capital gain) 11.4 Hungary (incl. capital loss) Group (excl. Russia, Ukraine & Hungary) Ramirent 69

70 For further information: Magnus Rosén, President and CEO, tel Jonas Söderkvist, CFO, tel Franciska Janzon, IR, tel