Result Q3/2009 Investor presentation. November 11, 2009 Magnus Rosén, President and CEO

Transcription

1 Result Q3/2009 Investor presentation November 11, 2009 Magnus Rosén, President and CEO

2 Ramirent in brief The leading equipment rental company in Northern, Central and Eastern Europe Our symbol The second largest rental company in Europe employees 344 rental outlets in 13 countries Over 100,000 rental customers Young fleet of over items Listed on NASDAQ OMX Helsinki 1998 Founded 1955 the Rami man 2 Q Results 2009 Ramirent

3 General Rental Company Lifts and Hoists Heavy Equipment Modules Scaffolding Tower Cranes Formworks Power and Heating Light Equipment 3 Q Results 2009 Ramirent

4 Extensive geographic footprint Segments Employees Outlets Market Position Finland #1 Sweden #2 Norway #1 Denmark #1 Europe East #1 Europe Central #1 Group 3, Local head office Outlet 4 Q Results 2009 Ramirent

5 January-September in brief Net sales decreased -29.0% to MEUR (530.1); -22.4% at constant currency Operating profit of MEUR 32.4 (99.4); margin of 8.6% (18.8%) Net profit of MEUR 14.0 (61.6); EPS of EUR 0.13 (0.57) Gross capital expenditure was MEUR 10.0 (204.5) Operative cash flow after investments of MEUR 68.1 (-59.5) Net debt decreased to MEUR (362.4) Gearing decreased to 74% (106%) from 108% at year-end Q Results 2009 Ramirent

6 Finland -19% excl. MEUR 6.4 in sales originating from fleet relocation Q3 Jan-Sept Finland Change Change Net sales, MEUR % % EBIT, MEUR % % EBIT-margin 15.3% 26.3% % 23.9% - Employees % Outlets % MEUR Net sales Q Q2 Q3 Q4 Q Q2 Q3 39 EBIT-% % 25 % 20 % 15 % 10 % 5 % 0 % Weak demand especially in Northern and Southern Finland. Renovation work and facility maintenance activity in shipyards and industrial plants remained stable. Profitability burdened by lower sales and restructuring costs. 6 Q Results 2009 Ramirent

7 Sweden -16% at constant currency Q3 Jan-Sept Sweden Change Change Net sales, MEUR % % EBIT, MEUR % % EBIT-margin 14.3% 21.0% % 21.8% - Employees % Outlets % MEUR Sales EBIT-% 25 % Profitability weakened due to the decline in sales and restructuring costs % % 10 % Signs of contraction that started in Southern Sweden spread into Central and Western parts of the country % Contract with long-term customer NCC was renewed. 0 Q Q2 Q3 Q4 Q Q2 Q3 0 % 7 Q Results 2009 Ramirent

8 Norway -21% at constant currency Q3 Jan-Sept Norway Change Change Net sales, MEUR % % EBIT, MEUR % % EBIT-margin 8.6% 16.8% % 18.6% - Employees % Outlets % MEUR Net sales EBIT-% % 20 % 15 % 10 % Signs of contraction were seen throughout the country. Profitability burdened by intensified price competition in certain product areas and cost adjustment impacts not yet fully visible % 5 0 Q1 Q2 Q3 Q4 Q Q2 Q3 0 % 8 Q Results 2009 Ramirent

9 Denmark Q3 Jan-Sept Denmark Change Change Net sales, MEUR % % EBIT, MEUR % % EBIT-margin -2.8% 4.7% - 0.2% 7.4% - Employees % Outlets % MEUR Net sales EBIT-% % 10 % 8 % 6 % 4 % 2 % 0 % The slowdown in Danish construction activity continued. Intense price competition due to the fragmented equipment rental market continued to burden profitability. 4-2 % 2-4 % 0 Q Q2 Q3 Q4 Q Q2 Q3-6 % 9 Q Results 2009 Ramirent

10 Europe East Russia, Estonia, Latvia, Lithuania, Ukraine -36% at constant currency Q3 Jan-Sept Europe East Change Change Net sales, MEUR % % EBIT, MEUR % % EBIT-margin -10.4% 14.1% % 16.6% Employees % Outlets % MEUR Net sales EBIT-% Q Q2 Q3 Q4 Q Q2 Q3 30 % 20 % 10 % 0 % -10 % -20 % -30 % -40 % Rapid sales decline throughout all Europe East countries reflecting challenging market conditions. Restructuring of the Baltic operations advanced according to plan. Profitability was burdened by the rapid decline in sales volume as well as lower price levels. 10 Q Results 2009 Ramirent

11 Europe Central Poland, Hungary, Czech Republic, Slovakia -9% at constant currency Q3 Jan-Sept Europe Central Change Change Net sales, MEUR % % EBIT, MEUR % % EBIT-margin 8.6% 17.2% - 7.9% 12.6% - Employees % Outlets % MEUR Net sales EBIT-% Q Q2 Q3 Q4 Q Q2 Q3 20 % 18 % 16 % 14 % 12 % 10 % 8 % 6 % 4 % 2 % 0 % Sales decreased throughout all Europe Central countries. Profitability burdened by intensified price competition in most product groups. To increase synergies and leverage on management experience Slovakian and Czech operations will be headed by a joint management. 11 Q Results 2009 Ramirent

12 No major pick-up in Nordic construction companies order backlogs in Q3 MEUR Order Backlog for Nordic Construction Companies Order Backlog Change % YoY Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q % 20 % 10 % 0 % 10 % 20 % 30 % 40 % Including: NCC, Veidekke, Skanska, YIT, Lemminkäinen Ramirent

13 2009 Outlook In spite of challenging market conditions, Ramirent expects a continued healthy cash flow generation also in the fourth quarter. However, in terms of operational profit, the fourth quarter is expected to be the weakest quarter in Q Results 2009 Ramirent

14 Strategic focus remain on cost cutting and cash flow Cost cutting Safeguarding profitability and cash flow Amortizing debt Right-sizing the fleet Develop the business model and reduce the operational risk level Capture opportunities in the recession 14 Q Results 2009 Ramirent

15 Fixed cost savings of at least 50 MEUR in 2009 are progressing according to plan Number of personnel R 12 Fixed costs development* people or -21% from Q MEUR MEUR or -19% from Q Q Q Q Q Q Target Q x Q Q Q Q Q R12 Employee Benefits R12 Other operating costs *excluding restructuring costs 15 Q Results 2009 Ramirent

16 Financial position improved further MEUR % 84 % 70 % 69 % 81 % Q % 106 % 108 % Q Q Q Q % Q % 120 % 100 % 74 % 80 % Q % 40 % 20 % 0 % Net debt Gearing (%) Equity ratio rose to 45.2% (39.1%) Net debt decreased to 230 MEUR from year-end level of 303 MEUR On 30 September 2009, Ramirent had unused committed back-up loan facilities available of EUR 201 million. 16 Q Results 2009 Ramirent

17 48 Long-term growth drivers still in place Long-term growing industry Growth drivers are construction, industrial activity and increased rental penetration Fragmented European rental market of EUR 33 bn Top 50 rental companies comprise 33% of the European market 70 % 60 % 50 % 40 % 30 % 20 % 10 % 0 % Rental penetration Europe avg. Finland Denmark Sweden UK Source: ERA 2008 report, Note: Finland company estimate Top 10 companies share of total market ~15% Attractive CEE construction markets Sarens GAM Hewden Select Plant Hire Speedy Hire Algeco Scotsman Cramo Mediaco Lifting Inhabitants (million) Construction Output (billion EUR) Ramirent Loxam Others Source: Euroconstruct June Q Results 2009 Ramirent

18 More information Magnus Rosén, CEO Jonas Söderkvist, interim CFO Franciska Janzon, IR

19 Long-term financial targets remain intact Long-term financial targets: ROI >18 % p.a. over a business cycle EPS growth > 15 % p.a. over a business cycle Gearing < 120 % at end of each year Dividend pay-out > 40 % 19 Q Results 2009 Ramirent

20 Largest shareholders remain stable Number of shares % of share capital 1. Nordstjernan AB Oy Julius Tallberg Ab Varma Mutual Pension Insurance Company Ilmarinen Mutual Pension Insurance Odin Norden Odin Finland Odin Europa SMB Mariatorp Veritas Pension Insurance Company Ltd Nordea Fennia Fund ) As per 31 October, Q Results 2009 Ramirent

21 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 November 11, 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 Q Results 2009 Ramirent