RAMIRENT HANDELSBANKEN NORDIC SMALL/ MID CAP SEMINAR. President and CEO Magnus Rosén. 21 June 2010

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1 RAMIRENT HANDELSBANKEN NORDIC SMALL/ MID CAP SEMINAR 21 June 2010 President and CEO Magnus Rosén

2 RAMIRENT IN BRIEF Leading equipment rental company in Northern, Central and Eastern Europe Net Sales of EUR 503 million (2009) 3,000 employees 350 rental outlets in 13 countries Over 100,000 customers Young fleet of 200,000 rental units NASDAQ OMX Helsinki 1998 Founded 1955 Headquartered in Finland 2

3 OFFERING STRUCTURED ACCORDING TO EIGHT CORE PRODUCT GROUPS LIFTS HEAVY MACHINERY TOWER CRANES AND HOISTS SCAFFOLDING MODULES SAFE (SAFETY AND FORMWORKS EQUIPM.) LIGHT MACHINERY POWER & HEATING 3

4 LEADING MARKET POSITIONS Segments Employees Outlets Market Position Norway 39 depots Market #1 Finland 82 depots Market #1 Finland #1 Sweden #2 Norway #1 Sweden 67 depots Market #2 Baltic 37 depots Market #2 Russia 1 5 depots 14 dealers Market #1 Denmark #1 Europe East #1 Europe Central #1 Group 3, Denmark 21 depots Market #1 Czech 6 depots Market #~4 Slovakia 36 depots Market #1 Poland 2 40 depots Market #1 Ukraine 3 depots Market #~5 Hungary 2 17 depots Market #1 (1) Russia including Moscow and St. Petersburg (2) excl. Formworks rentals 4

5 NORDIC COUNTRIES ARE OUR LARGEST MARKETS AND CONSTRUCTION IS OUR LARGEST CUSTOMER SECTOR Sales per segment Sales per customer sector Europe Central 11% Europe East 7% Finland 25% Industry 16 % Public sector 4 % Households 5 % Construction 75% Denmark 7% Norway 25% Sweden 26% as per Q as per

6 JANUARY MARCH 2010: SLOW MARKET AND HARSH WEATHER CONDITIONS WEIGH ON PROFIT Slow market conditions continued Harsh winter conditions delayed construction work throughout our operating countries Improvements visible in certain product groups in Sweden, Russia and Finland Challenging market situation in Denmark Market drop has stabilised on a low level in the Baltic countries Significant price pressure in Europe Central 6

7 JANUARY MARCH 2010 FINANCIAL HIGHLIGHTS Net sales decreased 8.7% to EUR (122.2) million; at comparable exchange rates the decline was 14.2% EBIT EUR -5.6 (7.2) million or -5.0% (5.9%) of sales EPS EUR (0.00) Gross capital expenditure EUR 12.5 (2.5) million Cash flow after investments EUR -4.0 (17.9) million Net debt EUR (281.2) million 7

8 CASH FLOW DEVELOPMENT MEUR Cash flow versus change in net debt Q Q Q Q Q Q Q Q Q Cash flow after investments Change in net debt 8

9 NET SALES DECLINED BY 9% IN Q Change in net sales, % EUR Comparable exchange rates 0 % -2 % -2 % -2 % -10 % -9 % -8 % -11 % -14 % -14 % -20 % -17 % -20 % -21 % -21 % -30 % -28 % -28 % Group Finland Sweden Norway Denmark East Central 9

10 EBIT MARGIN REMAINED STRONGEST IN SWEDEN EBIT-margin by segments % 16,6 % 10 % 5,9 % 3,1 % 8,8 % 8,7 % 5,1 % 0 % -10 % -5,0 % -0,8 % -1,6 %-0,6 % -7,8 % -20 % -30 % -40 % -21,8 % -32,2 % -35,8 % Group Finland Sweden Norway Denmark East Central 10

11 SIGNIFICANT PERSONNEL REDUCTION IN ALL SEGMENTS Personnel 31/03/09 Personnel 31/12/09 Personnel 31/03/ Finland Sweden Norway Denmark Europe East Europe Central At the end of the first quarter the Group s workforce amounted to 3,047 persons 11

12 FINANCIAL POSITION STABLE - GEARING AT 68% MEUR Net debt Gearing (%) % 106 % 108 % 120 % % 84 % 70 % 69 % 81 % 99 % 86 % 74 % 68 % 100 % 80 % 68 % 60 % % % Q Q Q Q Q Q Q Q Q % Equity ratio rose to 46.4% (39.8%) Net debt decreased to EUR (281.2) million On 31 March 2010, Ramirent had unused committed back-up loan facilities available of EUR million 12

13 UNCHANGED OUTLOOK 2010 Ramirent takes a cautious stance regarding the development of the economy and expects the equipment rental market to be challenging in Due to the restructuring actions and the adjustment of fixed costs, the profit before taxes is expected to improve in 2010 and the cash flow is expected to be positive. 13

14 THE AGM DECIDED ON A DIVIDEND OF EUR 0.15 PER SHARE AND GRANTED THE BOARD AUTHORITY TO DECIDE ON ADDITIONAL DIVIDEND % 300 % MEUR % 200 % 150 % % Dividends Payout ratio, % Target > 40% of annual net profit 50 % 0 % The Board was granted authority to decide on the payment of an additional dividend of no more than EUR 0.10/share. The Board shall make its decision no later than 31 December

15 WELL POSITIONED FOR A MARKET UPTURN Growth Stability Positioning Growth Counter cyclical free cash flow Business cycle Strong market conditions and substantial growth Ramirent today Strategy implementation priorities Priorities in 2009 Safeguarding cash flow and profitability Reduction of fixed costs and capital expenditure Optimising fleet sharing Priorities from 2010 onwards Top line growth Outsourcing Acquisitions Pricing discipline Operational excellence Rami platform Risk management 15

16 DEPOT NETWORK AND FLEET INTACT TO CAPTURE OPPORTUNITIES Depot by segment Investment in fleet MEUR Finland Norway Europe East Sweden Denmark Europe Central ~EUR 650 million 16

17 CAPTURING OPPORTUNITIES IN THE MARKET THROUGH OUTSOURCING DEALS AND ACQUISITIONS In Finland: Machinery operation of the Lemminkäinen subsidiary Oka Oy Machinery operation of the Lemminkäinen subsidiary Rakennus-Otava Oy Access platform operation of HAVATOR Group and cooperation agreement in Finland, Sweden and Norway. In Norway: Machinery operation of the Norwegian construction company Selvaagbygg In Sweden: Acquisition of Hyrmaskiner i Gävle AB, Mora AB and Falun AB operating under the brand Tidermans Hyrmaskiner in Sweden. 17

18 REFOCUSED BRAND STRATEGY AND A SYMBOL LINKED TO OUR BRAND PROMISE LET S SOLVE IT Uniting our 13 markets under the common slogan Let s solve it highlighting our problem-solving attitude Our Mission is to simplify business by delivering Dynamic Rental Solutions Our vision is to be the leading and most progressive equipment rental solutions company in Europe, setting the benchmark for industry performance and customer service 18

19 48 LONG-TERM GROWTH DRIVERS STILL IN PLACE Long-term growing industry Rental penetration Growth drivers are construction, industrial activity and increased rental penetration Fragmented European rental market of EUR 22 bn (without operators) Top 50 rental companies comprise 33% of the European market 70 % 60 % 50 % 40 % 30 % 20 % 10 % 0 % Europe avg. Finland Denmark Sweden UK Source: ERA 2008 report, Note: Finland company estimate Top 10 companies share of total market ~15% Emerging construction markets GAM Sarens Hewden Select Plant Hire Mediaco Lifting Inhabitants (million) Construction Output (bn EUR) Speedy Hire Algeco Scotsman Cramo Ramirent Loxam Others Source: Euroconstruct November

20 FORWARD-LOOKING STATEMENTS A number of forward-looking statements will be made during this presentation. Forward-looking statements are any statements that are not historical facts. These statements are based on current decisions and plans and currently known factors. They involve risks and uncertainties which may cause the actual results to materially differ from the results currently expected by Ramirent. This presentation is being made on June 21, The content of this presentation contains time-sensitive information that is accurate only as of the time hereof. If any portion of this presentation is rebroadcast, retransmitted or redistributed at a later date, Ramirent will not be reviewing or updating the material that is contained herein.

21 MORE INFORMATION Magnus Rosén, CEO Jonas Söderkvist, CFO Franciska Janzon, IR

22 FINLAND Q1 Jan-Dec Finland Change 2009 Net sales, MEUR % EBIT, MEUR EBIT-margin -0.8% 3.1% - 9.0% Employees % 602 Outlets % 81 MEUR Q Net sales Q2 Q3 Q4 Q EBIT-% Q2 Q3 Q4 Q % 25 % 20 % 15 % 10 % 5 % 0 % -5 % Activity in shipyards at low level but stable in industrial plants Demand returned in some product groups at end of quarter EBIT burdened by lower sales and additional depreciation due to harmonization of Group rules 22

23 SWEDEN -16.5% at comparable exchange rates Q1 Jan-Dec Sweden Change 2009 Net sales, MEUR % EBIT, MEUR EBIT-margin 8.8% 16.6% % Employees % 500 Outlets % MEUR Sales EBIT-% % 20 % 15 % 10 % Net sales decline due to low construction activity accentuated by harsh winter conditions Activity high in capital city area, but weaker in the south Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q1 5 % 0 % Ramirent AB acquired the rental equipment company Hyrmaskiner i Gävle AB and expanded its network in Sweden with 5 new outlets EBIT burdened by higher repair costs 23

24 NORWAY -11.2% at comparable exchange rates Q1 Jan-Dec Norway Change 2009 Net sales, MEUR % EBIT, MEUR EBIT-margin -1.6% 8.7% - 8.4% Employees % 547 Outlets % 39 MEUR Net sales EBIT-% % 20 % 15 % 10 % 5 % 0 % Net sales declined due to low construction activity and the long winter delayed projects Veidekke renewed its rental agreement with Ramirent for one year % -10 % -15 % Selvaagbygg outsourced the rest of its machinery operations and signed a three-year rental agreement with Ramirent 0 Q1 Q2 Q3 Q4 Q Q2 Q3 Q4 Q % EBIT burdened by low utilisation 24

25 DENMARK Q1 Jan-Dec Denmark Change 2009 Net sales, MEUR % 42.9 EBIT, MEUR EBIT-margin -7.8% -0.6% % Employees % 151 Outlets % 21 MEUR Net sales EBIT-% % 10 % 0 % -10 % -20 % Net sales decline due to low construction activity and difficult winter conditions EBIT burdened by low utilisation and intense price competition % -40 % 0 Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q % 25

26 EUROPE EAST -20.8% at comparable exchange rates Q1 Jan-Dec Europe East Change 2009 Net sales, MEUR % 51.3 EBIT, MEUR EBIT-margin -32.2% -35.8% % Employees % 357 Outlets % 44 MEUR Net sales 21 EBIT-% % 20 % 10 % 0 % -10 % Net sales continued to decrease in the Baltic countries but increased in Russia and Ukraine % -30 % -40 % EBIT burdened by lower sales levels and prices 5 0 Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q % -60 % -70 % Measures to right-size fleet capacity in the Baltic countries continued 26

27 EUROPE CENTRAL -21.0% at comparable exchange rates Q1 Jan-Dec Europe Central Change 2009 Net sales, MEUR % 65.0 EBIT, MEUR EBIT-margin -21.8% 5.1% - 4.3% Employees % 849 Outlets % 100 MEUR Q Net sales Q2 Q3 Q4 Q EBIT-% Q2 Q3 Q4 Q % 15 % 10 % 5 % 0 % -5 % -10 % -15 % -20 % -25 % Sales decreased throughout all Europe Central countries due to declining residential construction Also infrastructure construction declined due to harsh winter conditions EBIT burdened by decline in sales and intensified price competition in most product groups 27

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