Ramirent a progressive rental solutions group

Transcription

1 Ramirent a progressive rental solutions group SEB Enskilda Nordic Seminar, 9 January 2013, Copenhagen Magnus Rosén, President and CEO, Ramirent Plc Helsinki centre, Finland 1

2 Contents Company in brief Strategic priorities Q3 highlights Sector overview and outlook Financial targets Summary 2

3 Ramirent in brief Leading equipment rental company in Northern, Central and Eastern Europe with net sales of EUR 650 million (2011) 375 rental customer centers located in 13 countries and providing rental items employees serving customers Founded in 1955 and headquartered in Finland Listed on NASDAQ OMX Helsinki since 1998 IN BRIEF 3

4 More than 50 years of experience as a supplier to the construction industry Steel nail shop Rakennusmies founded Equipment rental business established JV in Moscow, Russia MBO by key personnel and capital investors Enter Lithuania Enter Poland Acquires Bautas in Norway Acquires Altima in Sweden Enter Slovakia Acquired by the Partek group and renamed A-rakennusmies Enter Estonia Enter Latvia Listed on the Helsinki Stock Exchange Renamed Ramirent Plc JV in Ukraine and greenfield entry to Hungary Greenfield entry to Czech Republic JV in Russia and Ukraine IN BRIEF SEB Enskilda Nordic Seminar 2013 l 9 January 2013 l Magnus Rosén 4

5 Ramirent operates in Europe with Baltic Sea region being the core market Sales per segment 1-9/2012 Wide network of customer centres Europe East 9 % Denmark 6 % Norway 23 % Europe Central 9 % Finland 24 % Sweden 29 % Norway 43 customer centres Denmark 22 customer centres Sweden 84 customer centres Europe Central 90 customer centres Finland 80 customer centres Europe East 60 customer centres IN BRIEF SEB Enskilda Nordic Seminar 2013 l 9 January 2013 l Magnus Rosén 5

6 Our strategic choices Brand promise Let s solve it 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 Values Open, Progressive, Engaged SEB Enskilda Nordic Seminar l 9 January 2013 l Magnus Rosén 6 IN BRIEF

7 Light machinery, lifts and modules are the biggest product groups measured by rental income 20% 7% 5% 11% LIFTS HEAVY MACHINERY TOWER CRANES AND HOISTS SCAFFOLDING 18% 4% 25% 10% MODULES SAFE LIGHT MACHINERY POWER & HEATING Ramirent s equipment fleet is organised along eight core product groups IN BRIEF SEB Enskilda Nordic Seminar 2013 l 9 January 2013 l Magnus Rosén 7

8 We create high-value solutions by integrating various products and services to solve a complete customer problem SOLUTIONS RAMIRENT OFFERING PRODUCTS Lifts Heavy machinery Tower cranes and hoists Scaffolding Benefits: Lighter balance sheets, less investments Modules Safety and formworks Light machinery Power and heating SERVICES Planning & design Ramirent know-how Transportation Installation Maintenance Inspections Insurance Operators Fuel/gas refilling Site logistics coordinator Facility management Paperwork for authorities Technical support 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 INDUSTRIES Total Management Eco solutions Safety Event Construction Mining Paper Power generation Oil & gas Shipyards Facility management Public sector Households Power Access Climate Space Benefits: Easy to buy, reduced number of subcontractors, increased focus on the core business OUTSOURCING Benefits: By outsourcing your machine fleet to Ramirent, companies can increase efficiency and simplify their business by focusing on core competences CUSTOMER NEEDS IN BRIEF SEB Enskilda Nordic Seminar 2013 l 9 January 2013 l Magnus Rosén 8

9 Our strategic priorities Customer first Sustainable profit growth Common Ramirent platform Balanced business portfolio STRATEGY SEB Enskilda Nordic Seminar 2013 l 9 January 2013 l Magnus Rosén 9

10 Target for the non construction customer segments share of Ramirent sales is 40% Industrial 18% Sales by customer segment 1 9/ 2012 Services and Retail 7% Public 3% Private 3% Construction 69 % Industry sectors with highest opportunities Mining Automotive Oil refining and other fuels Metal industry Chemical, petrochemical Pulp, paper, wood products Shipyards Energy industry Real estate Service companies Retail industry STRATEGY SEB Enskilda Nordic Seminar 2013 l 9 January 2013 l Magnus Rosén 10

11 R12 sales above previous peak primary focus lies on improving profitability Net Sales (MEUR) AND EBIT % Net sales EBIT,% Q R12 30% 25% 20% 15% 10% 5% 0% STRATEGY SEB Enskilda Nordic Seminar l 9 January 2013 l Magnus Rosén 11

12 We accelerate our growth through acquisitions and outsourcing cases End of Outsourcing deal in Finland Acquisition of Finnish weather protection rental company Outsourcing deal with two subsidiaries in Finland Outsourcing deal in Norway Outsourcing deal in Finland Acquisition of Czech rental business Acquisition of Swedish rental company Acquisition of specialist module rental company in Norway Acquisition of Danish rental business Acquisition of Czech rental business Danish scaffolding division Outsourcing deal in Denmark Acquisition of Swedish rental company Acquisition of Swedish rental company Outsourcing deal in Norway JV in Russia and Ukraine announced Some 50 companies on our watch list Aquisition of Czech rental business Acquisition of Swedish rental company STRATEGY SEB Enskilda Nordic Seminar 2013 l 9 January 2013 l Magnus Rosén 12

13 New strategy for our presence in Russia and Ukraine through joint venture with Cramo Combining Forces in Growing Markets Creates a Strong Stand-Alone Company Rationale is to create strong player with increased financial resources and excellent organisational capabilities to capture the growth opportunities in target markets RUSSIA 50% 50/50 JV Group Group 50% Key Facts UKRAINE Total Sales 2012E: 52m A stand-alone entity with new corporate identity 50/50 ownership for Cramo and Ramirent 2012E net sales and EBITDA margin of 52 million and ~35%, respectively 400 employees Depot locations: St. Petersburg region 7, Moscow region 6, other regions Russia 3, Ukraine 6 (+ 6 shop-in-shop outlets) STRATEGY SEB Enskilda Nordic Seminar 2013 l 9 January 2013 l Magnus Rosén 13

14 Creating the Leading Rental Company in Russia and Ukraine through complementary Strengths Cramo s unique strengths + Common + strengths Ramirent s unique strengths Fleet and capabilities to offer modular space to serve construction and industrial customers Good presence with international construction and industrial customers Existing platform location in Ural region (Yekaterinburg) General rental concept Broad equipment fleet Established presence in St. Petersburg and Moscow Strong local management Modern way-of-working due to the Western background Fleet and capabilities in heavy equipment to serve infrastructure construction Large customer base Presence in Ukraine Existing platform location in South region (Sochi) Expanded presence by utilizing sales agents = Combined company: Leading rental company in Russia and Ukraine STRATEGY SEB Enskilda Nordic Seminar 2013 l 9 January 2013 l Magnus Rosén 14

15 After a heavy M&A period, focus has been on regaining a strong financial position Group Net debt, by quarter (MEUR) Group Capex, by quarter (MEUR) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q STRATEGY SEB Enskilda Nordic Seminar l 9 January 2013 l Magnus Rosén 15

16 We are well-positioned to capture the longterm growth opportunities in the industry Rental penetration In the long term, rental penetration is expected to increase in Europe as construction companies and industrials recognize the advantages of renting Outsourcing There is a general trend towards outsourcing non-core activities to reduce capital employed and improve flexibility Integrated solutions Customers are increasingly interested in giving a broader integrated responsibility in their projects to rental companies Market consolidation The equipment rental industry is highly fragmented and Ramirent s strong position enables it to take an active role in the market consolidation Long-term growth in emerging markets In the emerging rental markets there are long-term growth potential in the construction volumes per capita compared to more mature Western Europe STRATEGY SEB Enskilda Nordic Seminar l 9 January 2013 l Magnus Rosén 16

17 Q highlights Tryggare Byggare roadshow, Malmö, Sweden 17

18 : Net sales growth slows, profitability stable, positive cash flow fourth quarter in a row Net sales MEUR (463.1) up 12.3% or 10.6% at comparable exchange rates; Like-for-like* growth 5.7% EBITDA MEUR (126.8) EBITDA-margin 29.6% (27.4%) EBIT MEUR 64.8 (48.6) EBIT-margin 12.5% (10.5%) Gross capex MEUR 87.2 (196.3) Cash flow after investments MEUR 37.3 (-67.9) Net debt MEUR (279.8) Gearing 73.2% (91.7%) Customer centres 375 (412) *Excluding acquisitions in Sweden and Norway Q3 HIGHLIGHTS 18

19 Net sales grew in Q3 in all segments except Europe Central and Finland YoY Change in net sales, Q3, % YoY Change in net sales, 1-9/12, % 20 % 15 % 10 % 5 % 0 % -5 % 4 % -1 % 17 % 4 % 1 % 9 % 25 % 20 % 15 % 10 % 5 % 0 % -5 % 18 % 20 % 16 % 12 % 11 % 10 % -10 % -10 % -15 % -20 % -17 % -15 % -20 % -15 % SEB Enskilda Nordic Seminar l 9 January 2013 l Magnus Rosén Q3 HIGHLIGHTS 19

20 EBIT margin improved in Q3 in Finland and Norway EBIT margin Q3/12 vs. Q3/11 EBIT margin 1-9/12 vs. 1-9/11 30 % 20 % 18 % 25 % 20 % 15 % 16 % 24 % 16 % 16 % 23 % 15 % 10 % 12 % 16 % 13 % 13 % 10 % 7 % 5 % 2 % 5 % 2 % 0 % 0 % -5 % -4 % Q Q Q Q SEB Enskilda Nordic Seminar l 9 January 2013 l Magnus Rosén Q3 HIGHLIGHTS 20

21 Q3/2012 cash flow after investments 23.7 MEUR Cash flow after investments (MEUR) Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q Q2 Q3 Cash flow after investments Rolling 12 months SEB Enskilda Nordic Seminar l 9 January 2013 l Magnus Rosén Q3 HIGHLIGHTS 21

22 Net debt decreased by 24.7 MEUR in Q3 2012; gearing was at 73.2% Net debt and gearing MEUR % 84% 70% 69% 81% 113% 106% 108% 99% 86% 74% 80% 71% 68% 68% 64% 60% 56% 92% 87% 84% 81% 73% 120% 100% 80% 60% % % 0 FY 04 FY 05 FY 06 FY Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q Q3 0% Net debt Gearing (%) Equity ratio was 41.9% (38.2%) Net debt amounted to EUR (279.8) million Q3 HIGHLIGHTS 22

23 Sector overview and outlook Fortum Jelgava Power Plant, Latvia 23

24 Nordic construction order books decreasing (-4%) for first time in three years Order book Nordics (BEUR, real exchange rates)* 20 60% % % % % 2 0 Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q Q2 Q3 Q4 Q Q2 Q3-40% Skanska Peab YIT SRV Change in order backlog YoY, Nordic construction NCC Veidekke Lemminkäinen Change in Net sales YoY, R12 Ramirent 4% decrease vs. Q3/11 in real exchange rates, 2% increase in fixed 4% decrease vs. Q2/12 * Order books for Swe, Fin, Nor, Den SEB Enskilda Nordic Seminar l 9 January 2013 l Magnus Rosén OUTLOOK 24

25 Market outlook Construction output forecasts Country 2012F 2013F 2014F Source* Nordic Finland -3.4% -2.3% 0.8% Euroconstruct Sweden -2.4% 0.2% 2.6% Euroconstruct Norway 4.7% 5.6% 2.5% Euroconstruct Denmark 0.5% 2.2% 4.4% Euroconstruct Europe Central Poland 1.6% -3.4% -1.0% Euroconstruct Czech Republic -5.4% -1.9% 0.8% Euroconstruct Slovakia -13.3% -1.0% 2.2% Euroconstruct Hungary -9.0% 0.9% 3.4% Euroconstruct Europe East Russia 3.0% 0-5% 0-5% Euroconstruct Estonia 23.0% 2.0% -3.0% Euroconstruct Latvia 8.0% 4.0% -2.0% Euroconstruct Lithuania 1.0% 3.0% -1.0% Euroconstruct Ukraine n.a. - n.a. n.a. Euroconstruct *Source: Euroconstruct December 2012 SEB Enskilda Nordic Seminar l 9 January 2013 l Magnus Rosén OUTLOOK 25

26 Our strategic and operational themes through the business cycles Market conditions Weak Stable Strong Weak market conditions in Increased demand and investments Business cycle Counter cyclical cash flow Strategic themes Safe-guard profitability and cash flow Realize synergies through operational excellence Profitable growth Consolidate market Outsourcing cases Consolidate market Bolt-on acquisitions Operational themes 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 Develop product, customer and market portfolio Expand value offering Maintenance capex Drive penetration and capture growth opportunities Keep control of fixed cost base Prepare contingency plans Growth capex for expansion SEB Enskilda Nordic Seminar l 9 January 2013 l Magnus Rosén OUTLOOK 26

27 Ramirent outlook 2012 unchanged In 2012, net sales are expected to increase and the result before taxes is expected to improve compared to SEB Enskilda Nordic Seminar 2013 l 9 January 2013 l Magnus Rosén OUTLOOK 27

28 Long-term financial targets Element Measure Target level Q Profit generation ROE 18% p.a. over a business cycle 18.6% Leverage and risk Net Debt / EBITDA Below 1.6x at the end of each fiscal year 1.2x Dividend Dividend pay-out ratio At least 40% of EPS 68% of 2011 net profit SEB Enskilda Nordic Seminar l 9 January 2013 l Magnus Rosén FINANCIAL TARGETS 28

29 Summary of company s strengths Leading equipment rental company in Northern, Central and Eastern Europe Senat's square, Helsinki, Finland 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 SEB Enskilda Nordic Seminar l 9 January 2013 l Magnus Rosén SUMMARY 29

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