Ramirent s Year 2007 Kari Kallio, CEO Annual General Meeting 9 April 2008, Pörssisali
Ramirent in Brief Leading equipment rental company in Northern, Central and Eastern Europe Net Sales of EUR 634 million (2007) More than 3,600 employees. Network of 340 rental outlets in 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 2 9.4.2008 2008 Ramirent
General Rental Company Formworks Modules Scaffolding Lifts and Hoists Power and Heating Tower Cranes 3 9.4.2008 2008 Ramirent Light Equipment Heavy Equipment
Lifts Modules Tower cranes Scaffolding Formworks More than 200,000 Rental units Light Machinery Heavy equipment Electricity & Heating 4 9.4.2008 2008 Ramirent
One Stop Shop supplier to 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. 5 9.4.2008 2008 Ramirent
Presence in 13 countries Local head office Outlet 6 9.4.2008 2008 Ramirent
Market Position Segments Sales 2007 (MEUR) Employees Outlets Market Position Finland 133.6 645 95 1 Sweden 152.7 616 51 2 Norway 145.9 661 37 1 Denmark 57.0 254 17 1 Europe* 146.5 1,450 110 1 Group 634.3 3,642 310 7 9.4.2008 2008 Ramirent *Ramirent Europe: Russia Estonia Latvia Lithuania Poland Hungary Ukraine Czech Republic (Slovakia as of 2008)
Profitable growth continued Compound annual growth rate 1998-2007: 39% MEUR 700 600 500 400 300 200 Acquisition of Bautas & Stavdal Acquisition of Altima & Treffco Entry in Czech Republic, acquisitions in Sweden and Poland Acquisition in Poland and Hungary 30 % 25 % 20 % 15 % 10 % 100 Start of growth strategy 5 % 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Finland Sweden Norway Denmark Europe EBIT,% 0 % 8 9.4.2008 2008 Ramirent
Full year 2007 highlights Profitable growth continued- EPS increased by 40% Net sales +27.4% to MEUR 634.3 (497.9) Operating profit (EBIT) +42.8% to MEUR 157.5 (110.3) EBIT-margin improved to 24.8% (22.2%) Profit before taxes (EBT) +41.6% to MEUR 145.8 (102.9) Earnings per share (diluted) +39.7% to EUR 1.02 (0.73) Capital expenditure was MEUR 217.5 (176.5) Net debt MEUR 235.9 (186.3); Gearing stable at 69.2% (70.3%) ROI was 31.7% (28.1%) and ROE was 36.4% (34.3%) The Board proposes a dividend of EUR 0.50 (0.30) per share 9 9.4.2008 2008 Ramirent
A strong year in Finland MEUR 1-12/07 1-12/06 Change Net sales 133.6 102.7 30.1 % EBIT 34.8 1) 25.1 38.6 % EBIT-margin 26.1% 24.5% 1) Excluding non-recurring profit amounting to 2.4 MEUR realised in Q2/07 from divestment of properties Sales by quarters EBIT (% of sales) 40 35 35 36 36 35 % 30 % 33,2 % 31,9 % 32,2 % 30 25 20 15 16 21 27 24 22 28 25 29 23 25 % 20 % 15 % 23,9 % 23,6 % 22,8 % 20,5 % 16,8 % 13,1 % 23,9 % 23,0 % 16,3 % 2005 2006 2007 10 10 % 5 5 % 10 9.4.2008 2008 Ramirent 0 Q1 Q2 Q3 Q4 0 % Q1 Q2 Q3 Q4 Acquisitions from 2006 accounted for 6% of net sales increase. Strong net sales increase in construction, shipyards and industrial projects. Minor dependence of the residential market. The penetration is increasing. Ramirent s main markets in Finland are expected to continue to expand in 2008.
Clear profit increase in Sweden MEUR 1-12/07 1-12/06 Change Net sales 152.6 130.9 16.6 % EBIT 1) 35.1 21.8 1) 61.0 % EBIT-margin 23.0% 16.7% 1) Excluding non-recurring profit amounting to 5.4 MEUR realised in Q1/06 from divestment of properties Sales by quarters EBIT (% of sales) 50 30 % 45 40 35 30 25 20 15 24 30 36 37 37 31 32 27 25 30 38 43 25 % 20 % 15 % 10 % 26,0 % 24,0 % 20,7 % 20,7 % 19,2 % 19,6 % 14,4 % 12,5 % 11,7 % 11,8 % 7,9 % 2005 2006 2007 10 5 5 % 3,0 % 0 Q1 Q2 Q3 Q4 11 9.4.2008 2008 Ramirent 0 % Q1 Q2 Q3 Q4 Strong profit improvement due to better capacity utilization, new products, customer groups and enhanced network. Major two-year agreement for Boliden s copper mine expansion signed. Acquisition of Tidermans in November 2007 adds 4 outlets in Stockholm and Uppsala area. Favorable market conditions expected to continue in 2008.
Stable improvement in Norway MEUR 1-12/07 1-12/06 Change Net sales 145.9 120.3 21.2 % EBIT 35.9 26.6 34.9 % EBIT-margin 24.6% 22.1% 45 40 35 30 25 20 Sales by quarters 36 35 33 29 29 29 26 24 22 29 33 42 30 % 25 % 20 % 15 % EBIT (% of sales) 25,0 % 25,7 % 24,9 % 25,2 % 22,4 % 22,9 % 21,8 % 18,7 % 19,2 % 18,5 % 14,3 % 2005 2006 2007 15 10 % 9,5 % 10 5 5 % 0 Q1 Q2 Q3 Q4 0 % Q1 Q2 Q3 Q4 Overall improvement in operations. Capacity utilization improved during the year. Major agreement for 3-5 years signed with Veidekke. Stable market situation predicted for 2008. 12 9.4.2008 2008 Ramirent
Denmark grew in a tight market MEUR 1-12/07 1-12/06 Change Net sales 57.0 50.0 14.1 % EBIT 10.2 7.0 44.9 % EBIT-margin 17.9% 14.1% 18 16 14 12 10 8 6 4 2 Sales by quarters 16 15 14 14 14 13 13 12 11 11 10 8 30 % 25 % 20 % 15 % 10 % 5 % EBIT (% of sales) 24,2 % 18,3 % 17,8 % 17,8 % 17,4 % 14,2 % 12,7 % 11,4 % 10,4 % 8,4 % 6,8 % 1,2 % 2005 2006 2007 0 Q1 Q2 Q3 Q4 0 % Q1 Q2 Q3 Q4 Net sales increased despite slower construction market conditions. Lower share of re-renting of machinery had a positive effect on profits. Improved logistics and widened service offering. Flat growth of the construction market expected in 2008. 13 9.4.2008 2008 Ramirent
Europe continued strong growth MEUR 1-12/07 1-12/06 Change Net sales 146.4 96.4 52.0 % EBIT 42.2 25.7 64.5 % EBIT-margin 28.8% 26.6% 50 45 40 35 30 Sales by quarters 42 34 27 28 44 32 40 % 35 % 30 % 25 % EBIT (% of sales) 33,60 % 33,50 % 28,70 % 28,90 % 25,70 % 25,60 % 25,40 % 25,40 % 22,70 % 2005 2006 2007 25 20 15 10 16 9 21 12 17 19 20 % 15 % 10 % 17,50 % 14,80 % 7,10 % 5 5 % 0 Q1 Q2 Q3 Q4 0 % Q1 Q2 Q3 Q4 Fastest growth in Czech Republic, Lithuania, Poland and Russia. Improved market position due to high investments, high utilization and expansion of network. Restructuring in Hungary to adjust for lower demand due to fiscal stabilization. Signs of overheating in the Baltics is being closely monitored. Overall solid growth expected to continue in most of our markets. 14 9.4.2008 2008 Ramirent
Entry into Slovakia Acquisition of a 60% stake in OTS Founded 1973 Sales expectation: > MEUR 10 in 2008 135 employees 40 outlets (of which half franchised) Strong market position in Slovakia Growing construction market 15 9.4.2008 2008 Ramirent
Construction Output in Ramirent Markets 5 24 Finland 29 5 Norway 23 9 Sweden 2 2 1 2 Estonia 27 5 Denmark Latvia 3 3 Lithuania 145 65 38 28 Russia Poland 10 17 Czech Rep. 5 4 Slovakia 48 7 Inhabitants (million) Construction Output (billion EUR) 10 11 Hungary Ukraine Source: Euroconstruct Nov, 2007 16 9.4.2008 2008 Ramirent
Rental Penetration is increasing 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 2006 17 9.4.2008 2008 Ramirent
All financial targets fulfilled 2003 2004 2005 2006 2007 Target EPS (diluted), EUR 0.20 0.15 0.33 0.73 1.02 EPS change, % -17.9-26.1 120.0 119.0 39.7 > 15% ROI, % 10.3 14.2 17.2 28.1 31.7 > 18% Dividend per share, EUR 0.03 0.06 0.15 0.30 0.50 Dividend payout ratio, % 15.4 37.5 45.5 41.1 49.3 > 40% 18 9.4.2008 2008 Ramirent
Net debt and gearing MEUR Equity and equity ratio MEUR 250 200 150 100 50 0 2004 2005 2006 2007 120 % 100 % 80 % 60 % 40 % 20 % 0 % 400 350 300 250 200 150 100 50 0 2004 2005 2006 2007 47 % 46 % 45 % 44 % 43 % 42 % 41 % 40 % 39 % 38 % Net debt (1-12) Gearing (%) Equity Equity ratio (%) 19 9.4.2008 2008 Ramirent
Dividend payout ratio MEUR 60 50 40 30 20 10 90 % 80 % 70 % 60 % 50 % 40 % 30 % 20 % 10 % 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007* Dividends Payout ratio, % Target >40% 0 % *Note! Board proposal. 20 9.4.2008 2008 Ramirent
Share price development 23,80 1.400 EUR 300.000.000 20,40 1.200 250.000.000 17,00 1.000 200.000.000 13,60 800 10,20 600 6,80 400 3,40 200 1,70 0 21 9.4.2008 2008 Ramirent 2003-01 2003-04 2003-07 2003-10 2004-01 2004-04 2004-07 2004-10 2005-01 2005-04 2005-07 2005-10 2006-01 2006-04 2006-07 2006-10 2007-01 2007-04 2007-07 2007-10 2008-01 Turnover Ramirent Sector OMX Helsinki Portfolio 150.000.000 100.000.000 50.000.000
10 Largest shareholders Number of shares % of share capital 1. Nordstjernan AB 22,349,080 20.56 2. Oy Julius Tallberg Ab 11,427,229 10.51 3. Varma Mutual Pension Insurance Company 7,918,441 7.28 4. Ilmarinen Mutual Pension Insurance Company 2,372,828 2.18 5. Odin Norden 2,018,860 1.86 6. Odin Finland 1,217,762 1.12 7. Odin Europa SMB 959,680 0.88 8. The State Pension Fund 920,000 0.85 9. Etera Mutual Pension Insurance Company 842,120 0.77 10. Veritas Pension Insurance Company Ltd. 780,000 0.72 Total 10 largest shareholders 1) 50,806,000 46.74 Nominee-registered shareholders 37,242,043 34.26 Other shareholders 20,650,393 19.00 Total 108.698.436 100.00 1) As per 31 March, 2008 22 9.4.2008 2008 Ramirent
2008 Outlook Overall market conditions are expected to remain favorable in 2008, but with lower growth rates and increasing uncertainty regarding the market outlook. In the Nordic countries, the outlook in the business premise and infrastructure sectors remains favorable, although a slow-down is expected in the residential housing sector. In Central and Eastern Europe, Ramirent expects the strong demand in the construction market to continue in most of its markets, but the risks of overheating and imbalances have increased in some countries. As rental penetration rates are increasing, Ramirent estimates that the machinery rental markets will grow faster than the construction markets. Ramirent will continue to invest in new fleet capacity and search for suitable bolt-on acquisitions to support profitable growth. For the full-year 2008, Ramirent expects to fulfill its financial targets. 23 9.4.2008 2008 Ramirent
Thank you! Contact information CEO Kari Kallio, +358 20 750 2845 Contact by email Firstname.lastname@ramirent.com communications@ramirent.com 24 9.4.2008 Ramirent