Ramirent US Roadshow September, 2008

Transcription

1 Ramirent US Roadshow September, 2008 Kari Kallio, President and CEO Heli Iisakka, CFO Franciska Janzon, IR Sept, 2008 US Roadshow Ramirent

2 Ramirent in Brief Leading equipment rental company in Northern, Central and Eastern Europe Net Sales of EUR 634 million (2007) More than 4,000 employees 357 rental outlets across 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 Sept, 2008 US Roadshow Ramirent

3 Cornerstones of Ramirent s strategy Profitable growth Local leadership positions Balanced geographic portfolio Emphasis on organic growth Pursuing acquisitions or consolidation opportunities supporting profitable growth Strong balance sheet Sept, 2008 US Roadshow Ramirent

4 A balanced market portfolio Local head office Outlet Sept, 2008 US Roadshow Ramirent

5 General rental company with a wide product portfolio Formworks Modules Light Equipment Lifts and Hoists Power and Heating Tower Cranes Heavy Equipment Scaffolding Sept, 2008 US Roadshow Ramirent

6 One-stop-shop supplier to a 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 Sept, 2008 US Roadshow Ramirent

7 Renting becoming the new standard Financial Benefits Release of capital for your core business Minimizing assets & better cost control No maintenance costs No transportation vehicle fleet Equipment and Service benefits Large diversity of products Availability of state-of-the art equipment Use it when you need it Proximity & delivery on the site Safety Benefits Pre-rental safety check Regulation compliance Well maintained fleet Sept, 2008 US Roadshow Ramirent

8 Operating structure Rental Outlet Network Finland Sweden Norway Denmark Ramirent Europe 1) Local equipment Local equipment Local equipment Local equipment East Central Pan European Fleet Local equipm. Local equipm. Fleet management Procurement Finance 1) Ramirent Europe includes Russia, Estonia, Latvia, Lithuania, Poland, Hungary, Ukraine, Czeck Republic, Slovakia Sept, 2008 US Roadshow Ramirent

9 Ramirent targets profitable growth Compound annual growth rate : 39% MEUR 700 Entry in Czech Republic, acquisitions in Sweden and Poland 30 % Start of growth strategy Acquisition of Bautas and Stavdal Acquisition of Altima and Treffco Acquisition in Poland and Hungary 25 % 20 % 15 % 10 % 5 % Finland Sweden Norway Denmark Europe EBIT,% 0 % Sept, 2008 US Roadshow Ramirent

10 Ramirent ranks 9 worldwide Total rental market 2007 (machinery & equipment): Global EUR 62 bn MEUR United Rentals (US) Ashtead Group (US/UK) RSC Equipment Rental (US) Hertz Equipment Rental Corp (US) 2007/2008 Algeko Scostman (US) Aggreko (UK) Loxam (FR) Coates Hire Ltd (AU) Ramirent (FI) Speedy hire Plc (UK) Source: IRN June 2008, ERA Convention Sept, 2008 US Roadshow Ramirent

11 Market leader in Northern, Central and Eastern Europe Rental market 2007 (machinery & equipment): Europe EUR 23.5 bn MEUR Loxam Ramirent Speedy Hire Cramo 2007 Algeko Scostman (US) Select Plant Hire GAM Liebherr-Mietpartner Mediaco Lifting HSS Hire Source: IRN June 2008, ERA Convention Sept, 2008 US Roadshow Ramirent

12 Leading market positions across 13 countries Segments R12 Sales 6/2008 Employees (average) Outlets Market Position Finland Sweden Norway Denmark *Europe East *Europe Central Group * Europe East Russia Estonia Latvia Lithuania Ukraine Europe Central Poland Hungary Czech Republic Slovakia Sept, 2008 US Roadshow Ramirent

13 Key business drivers for Ramirent Growing construction markets Increasing penetration rates Increased equipment usage Market consolidation Undeveloped rental markets Entry into new markets Sept, 2008 US Roadshow Ramirent

14 Large potential in Central and Eastern Europe Construction output by Ramirent market Inhabitants (million) Construction Output (billion EUR) 5 5 Norway 30 9 Sweden Finland 1 3 Estonia 2 3 Latvia Denmark Lithuania Poland 5 5 Czech Rep Slovakia 8 *Ukraine **Russia Hungary Source: Euroconstruct June 2008, *Business Monitor International, **Ministry for Economic Development of Russian Federation Sept, 2008 US Roadshow Ramirent

15 Rental penetration still low in Ramirent markets 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 Sept, 2008 US Roadshow Ramirent

16 Sept, 2008 US roadshow Ramirent Q208 Interim Report

17 H108 Interim Report: Growth continued, but profits declined H Highlights Net sales increased by 18.8% to MEUR (288.6) EBITDA up 9.7% to MEUR (102.2) EBIT was MEUR 65.0 (65.5) with a margin of 19.0% (22.7%) Earnings per share of EUR 0.38 (0.42) Gross Capital expenditure was (147.2), of which machinery and equipment MEUR (145.7) Net debt of MEUR (279.6), gearing of 112.5% (99.4%) Return on invested capital (ROI) of 25.8% (28.4%) Q Highlights Net sales increased by 18.9% to MEUR (152.0) EBIT was MEUR 35.5 (36.5) with a margin of 19.6% (24.0%), EBIT excl. property sale gains was MEUR 35.1 (33.9) Earnings per share of 0.20 (0.24) Sept, 2008 US Roadshow Ramirent

18 Ramirent Group sales allocation H1 08 H % 21 % 8 % 21 % 13 % 13 % 8 % 9 % 25 % 25 % 22 % 24 % Finland Sweden Norway Denmark Europe East Europe Central Sept, 2008 US Roadshow Ramirent

19 H108- Finland Strong development in overall Finnish construction market, shipyards and industrial projects Increased usage of leasing had a slight negative effect on margins MEUR 4-6/08 4-6/07 Change 1-6/08 1-6/07 Change Net sales EBIT % 19% % 12% EBIT-margin 25.0% 23.9% 22.5% 23.9% Employees (average) Outlets MEUR % 33,2 % 32,2 % 30 % 25,0 % 23,9 % 23,9 % 25 % 23,6 % 22,8 % 23,0 % 20 % 19,6 % 16,8 % 15 % 10 % % 0 Q1 Q2 Q3 Q4 Sales 0 % Q1 Q2 Q3 Q4 EBIT -margin Sept, 2008 US Roadshow Ramirent

20 H108-Sweden Profitability improvement continued due to better utilisation of the fleet and organisational resources, an enhanced outlet network and new customer groups. Good market development and the acquisition of Hyresmaskiner i Stockholm AB contributed to sales growth MEUR 4-6/08 4-6/07 Change 1-6/08 1-6/07 Change Net sales % % EBIT % % EBIT-margin 22.6% 20.7% 22.2% 20.7% Employees (average) Outlets MEUR % 25 % 20 % 15 % 26,0 % 21,7 % 24,0 % 22,6 % 20,6 % 20,7 % 19,2 % 19,6 % 14,4 % 12,5 % % % % Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Sales Sept, 2008 US Roadshow Ramirent EBIT- margin

21 H108- Norway Profitability burdened by cost increases and lower utilization. Weaker market demand in some geographical areas especially in Oslo area. MEUR 4-6/08 4-6/07 Change 1-6/08 1-6/07 Change Net sales % % EBIT % % EBIT-margin 20.4% 24.9% 19.5% 23.6% Employees (average) Outlets % % 20 % 25,0 % 25,7 % 24,9 % 25,2 % 22,4 % 22,9 % 21,8 % 20,4 % 18,6 % 18,7 % MEUR % % % 0 Q1 Q2 Q3 Q4 Sales Sept, 2008 US Roadshow Ramirent 0 % Q1 Q2 Q3 Q4 EBIT -margin

22 H108-Denmark The decline in the construction market continued Tougher price competition and increased overall costs. MEUR 3-6/08 3-6/07 Change 1-6/08 1-6/07 Change Net sales % % EBIT % % EBIT-margin 11.2% 17.8% 8.7% 14.2% Employees (average) Outlets % 24,2 % MEUR ,3 % 20 % 17,8 % 17,8 % 17,4 % 15 % 11,4 % 11,2 % 10,4 % 10 % 6,8 % 5,9 % 5 % % Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Sales EBIT -margin Sept, 2008 US Roadshow Ramirent

23 H108 - Europe Central (Poland, Hungary, Czech Rep., Slovakia) Europe Central business operations continued to grow rapidly except in Hungary. Ramp up costs in Poland, Czech republic and Slovakia and the negative development in Hungary decreased profitability. MEUR 4-6/08 4-6/07 Change 1-6/08 1-6/07 Change Net sales % % EBIT % % EBIT-margin 9.3% 21.4% 9.3% 22.2% Employees (average) 1, Outlets % 27,9 % MEUR % 20 % 15 % 10 % 23,3 % 21,4 % 20,4 % 9,2 % 9,3 % % 0 Q1 Q2 Q3 Q4 0 % Q1 Q2 Q3 Q4 Sales EBIT-margin Sept, 2008 US Roadshow Ramirent

24 Ramirent in Poland Operations started in outlets Market leader in scaffolding, machinery and equipment rentals for construction and industry Market environment Stable economic growth High construction market growth Increased competition as everyone wants to be in the market Key facts 2008e 2009e 2010e GDP (growth %) Inflation % Population (million) Construction output, % change (2007: 35 EUR billion) Source: PMR Research, GUS, Euroconstruct % % % Sept, 2008 US Roadshow Ramirent

25 H108 - Europe East (Russia, Estonia, Latvia, Lithuania, Ukraine) Sales decreased in Estonia and Latvia; strong growth continued in Russia, Ukraine and Lithuania. Profitability decreased due to the negative development in Estonia and Latvia. Adjustment of the fleet capacity and cost structure continued in Estonia and Latvia. MEUR 4-6/08 4-6/07 Change 1-6/08 1-6/07 Change Net sales % % EBIT % % EBIT-margin 16.0% 29.4% 18.1% 28.4% Employees (average) Outlets % 36,0 % 34,3 % MEUR % 30 % 25 % 20 % 15 % 29,4 % 27,2 % 20,6 % 16,0 % % 5 5 % 0 Q1 Q2 Q3 Q4 Sales 0 % Q1 Q2 Q3 Q4 EBIT-margin Sept, 2008 US Roadshow Ramirent

26 Ramirent in Russia Operations started in outlets Strong market position in St. Petersburg and Moscow Rental customers also outside St Petersburg and Moscow area Market Environment Growth considerably above European average Considerable foreign investments Growing construction market Key facts 2008e 2009e 2010e GDP Inflation Population (million`s) Change % Construction output (2007: EUR 95 bn) Source: Ministry for Economical Development of Russian Federation Sept, 2008 US Roadshow Ramirent

27 The Federal districts of the Russian Federation Sept, 2008 US Roadshow Ramirent 27

28 Ramirent in Ukraine Operations started in outlets Strong market position Market environment Growth considerably above European average Considerable foreign investment activities Favourable labour conditions Key facts 2008e 2009e 2010e GDP Inflation Population (million`s) Change % Construction output (2007: EUR 8 bn) 10.2 n/a n/a Source: Business Monitor International Sept, 2008 US Roadshow Ramirent

29 Ukraine Market environment Availability of modern real estate facilities 2-3 times behind Central Europe depending on type of property Availability of modern real estate facilities by type, sq.m Sq.m Office Warehouse Retail Source: Colliers International and Business Monitor International Kiev Warsaw Prague Budapest Sept, 2008 US Roadshow Ramirent

30 Construction output development Construction volume Finland Sweden Norway Denmark Poland Hungary Estonia Latvia Lithuania Czech Republic Slovakia Ukraine * Russia ** MEUR % change in real terms F 2009F 2010F 27, % -5.0% -0.8% 24, % 2.5% 3.0% 33, % -1.9% 2.0% 30, % -0.5% -0.2% 35, % 10.7% 9.4% 10, % 5.0% 6.2% 2, % -1.0% 4.0% 2, % -2.0% 4.0% 3, % 1.0% 5.0% 19, % 5.4% 4.9% 4, % 4.8% 3.2% 8, % n/a n/a 90, % 10.0% 9.6% Source: Euroconstruct June 2008, *Business Monitor International, **Ministry for Economic Development of Russian Federation Sept, 2008 US Roadshow Ramirent

31 Outlook 2008 The operating environment has in 2008 become more challenging and we expect overall equipment rental market growth rate to slow down. In Nordic region, strongest growth expected in Sweden and Finland while growth slowing down in Norway and Denmark. In Central and Eastern Europe, sustained growth expected in most operating countries expect for the Baltics and Hungary. Priority set on bolt-on acquisition and reallocation of existing equipment and cost reductions in countries with weak market expectations. Since Ramirent will delimit investments, cash flow is expected to be positive for the second half of 2008 and gearing to improve Sept, 2008 US Roadshow Ramirent

32 Outlook 2008 For the full year 2008, we estimate net sales growth to continue, but profit before taxes and earnings per share to be below the 2007 level Sept, 2008 US Roadshow Ramirent

33 Appendix Sept, 2008 US roadshow Ramirent

34 10 Largest shareholders 1. Nordstjernan AB 2. Oy Julius Tallberg Ab 3. Varma Mutual Pension Insurance Company 4. Ilmarinen Mutual Pension Insurance Company 5. Odin Norden 6. Odin Finland 7. Odin Europa SMB 8. The State Pension Fund 9. Fondita Nordic Small Cap Investment Fund 10. Veritas Pension Insurance Company Ltd. Number of shares 28,100,080 11,627,229 7,951,299 2,322,828 2,026,160 1,473,759 1,326, , , ,000 % of share capital Total 10 largest shareholders 1) 57,517, Nominee-registered shareholders Other shareholders Total 1) As per 30 June, ,952,583 26,227, , Sept, 2008 US Roadshow Ramirent

35 Share price development Turnover Ramirent Sector OMX Helsinki Portfolio Sept, 2008 US Roadshow Ramirent EUR

36 Key Figures MEUR 1-6/ /2007 Net sales EBIT EBIT-% ROI,% 1) ROE,% 1) Net debt Gearing, % Equity ratio,% Personnel, average 3,996 3,261 Personnel, end of period 4,134 3,484 Gross investments Gross investments, % net sales EPS diluted, EUR ) Rolling twelve month basis change % / ,407 3, Sept, 2008 US Roadshow Ramirent

37 Capital structure Gearing by quarters % 120 % 100 % 80 % 60 % 40 % % 0 % Q1 Q2 Q3 Q Sept, 2008 US Roadshow Ramirent

38 European Rental Market Country 2007 Rental Turnover (MEUR) Number of Rental Companies % of total Europe Number of Rental Depots Number of Employees France 4,000 1,300 2,450 25,000 Germany 3,800 3,800 5,000 23,000 Italy 1,780 1,800 2,200 9,000 Spain 2,300 2,200 2,800 15,000 UK 6,200 2,300 3,500 45,000 Total major markets 18,080 77% 11,400 15, ,000 Belgium Lux ,100 Netherlands ,350 6,750 Total Benelux 1,125 5% 1,290 1,720 8,850 Denmark ,800 Finland ,200 Norway ,500 Sweden ,800 Total Nordic Countries 2,405 10% 820 1,420 13,300 Source: International Rental News July-August Sept, 2008 US Roadshow Ramirent

39 European Rental Market Country 2007 Rental Turnover (MEUR) Number of Rental Companies % of total Europe Number of Rental Depots Number of Employees Bulgary Czech Republic Estonia Hungary Latvia Lithuania Poland ,900 Romania Slovakia Total Eastern Europe 590 3% ,240 Austria ,500 Greece Ireland ,800 Portugal ,400 Switzerland ,800 Total Others 1,300 6% 465 1,060 9,300 Grand Total Europe 23,500 14,500 21, ,000 Source: International Rental News July-August Sept, 2008 US Roadshow Ramirent

40 Long-term financial targets Target EPS (diluted), EUR EPS change, % > 15% ROI, % > 18% Dividend per share, EUR Dividend payout ratio, % > 40% Sept, 2008 US Roadshow Ramirent

41 Long-term fincial targets Earnings per share 1,2 1 0,8 140 % 120 % 100 % 80 % EUR 0,6 0,4 0,2 60 % 40 % % 15% 0 % -20 % EPS EPS change, % Target -40 % Sept, 2008 US Roadshow Ramirent

42 Long-term fincial targets Return on invested capital % % MEUR % 20 % 18% 15 % % % Invested capital ROI, % Target 0 % Sept, 2008 US Roadshow Ramirent

43 Long-term fincial targets Dividend payout ratio % 80 % 70 % MEUR % 50 % % % 20 % 10 % Dividends Payout ratio, % Target 0 % Sept, 2008 US Roadshow Ramirent

44 Statement of Income (EUR 1,000) 4-6/ / / / Net sales Other operating income TOTAL Materials and services Employee benefit expenses Depreciation Other operating expenses OPERATING PROFIT Financial income Financial expenses PROFIT BEFORE TAXES Income taxes NET PROFIT FOR THE PERIOD Sharing of profit: To the parent company's shareholders To the Group's minority Sharing of profit, total Earnings per share (EPS), diluted, EUR Earnings per share (EPS), non-diluted, EUR Sept, 2008 US Roadshow Ramirent

45 Balance Sheet Assets (EUR 1,000) NON-CURRENT ASSETS Tangible assets Investments in process Goodwill Other intangible assets Available-for-sale investments Deferred tax assets NON-CURRENT ASSETS, TOTAL CURRENT ASSETS Inventories Trade and other receivables Income tax receivables on the taxable income for the financial period Cash and cash equivalents Non-current assets held for sale CURRENT ASSETS, TOTAL TOTAL ASSETS Sept, 2008 US Roadshow Ramirent

46 Balance Sheet Equity and Liabilities (EUR 1,000) EQUITY Share capital Share premium account Retained earnings PARENT COMPANY SHAREHOLDERS EQUITY Minority interests EQUITY, TOTAL NON-CURRENT LIABILITIES Deferred tax liabilities Pension obligations Provisions Interest-bearing liabilities NON-CURRENT LIABILITIES, TOTAL CURRENT LIABILITIES Trade payables and other liabilities Provisions 463 Income tax liabilities on the taxable income for the financial period Interest-bearing liabilities CURRENT LIABILITIES, TOTAL LIABILITIES, TOTAL TOTAL EQUITY AND LIABILITIES Sept, 2008 US Roadshow Ramirent

47 Consolidated cash flow statement (MEUR) 1-6/ / Cash flow from operating activities Cash flow from investing activities Cash flow from financing activities Proceeds from share subscriptions Borrowings/ repayments of short-term debt Borrowings of long-term debt Dividens paid Cash flow from financing activities Net change in cash and cash equivalents 0.1 Cash and cash equivalents at the beginning of the financial years 1.1 Translation difference on cash and cash equivalents 0.0 Net change in cash and cash equivalents 0.1 Cash and cash equivalents at the end of the financial year Sept, 2008 US Roadshow Ramirent

48 Magnus Rosén, New CEO of Ramirent as of 15 January 2009 Magnus Rosén, b Joins Ramirent from the position as BE Group s President of Business Area Sweden since 2008 Previous experience: Managing Director at Cramo AB, Senior Vice President at Cramo Oyj; Managing Director at BT Hyrsystem AB and Service Market Manager at BT Svenska AB Education: B.Sc. Business administration and Economics, Linköping University, MBA Stockholm School of Economics and several executive training programmes including IMD in Lausanne Sept, 2008 US Roadshow Ramirent