rr results q1_2015_en_final
TRANSCRIPT
© 2015 Ramirent
SALES GROWTH FROM INCREASING SERVICE BUSINESS 7 May 2015 Magnus Rosén, President and CEO Jonas Söderkvist, CFO and EVP Corporate Functions
Q1 Interim report January–March 2015
© 2014 Ramirent © 2015 Ramirent
Agenda
2
Group performance
Segment review
Market outlook
Key figures
Financial position
Company overview
Appendix
© 2015 Ramirent 3
Q1/2015: Sales growth from increasing service business
Key figures Q1/2015
Business performance
Market situation
In Sweden, strong demand from residential and infrastructure construction Challenging market conditions and price pressure continued in Finland and Norway In Denmark and Baltics market activity was balanced Improving activity in Europe Central equipment rental markets
Net sales increased by 2.2% or by 5.4% at comparable exchange rates
EBITA 4.1 (7.1) MEUR or 2.9% (5.2%) of net sales
ROI % on a rolling 12 months basis was 12.9% (13.9%)
Cash flow after investments improved to 0.9 (-5.1) MEUR
Net debt to EBITDA ratio 1.4x (1.2x)
In the first quarter net sales grew in Sweden, Finland and Baltics EBITA margin decreased due to • A higher share of service sales • Start-up costs in Solutions projects, • Reorganisation of repair & maintenance operations • Price pressure
Interim report January–March 2015 l 7 May 2015
© 2015 Ramirent 4
Despite a tough market in two of our key countries, Group net sales increased in the first quarter
Change in net sales Q1/2015
2.2%
5.4%
0%
1%
2%
3%
4%
5%
6%
7%
Q1/2015 reported Q1/2015 at comparableexchange rates
Net sales (MEUR) Q1/2015
First-quarter net sales grew by 5.4% at comparable exchange rates
Reported sales were up by 2.2% compared to the previous year
137.5 140.6
0
20
40
60
80
100
120
140
160
Q1/2014 reported Q1/2015 reported
First-quarter net sales 140.6 (137.5) MEUR
Sales growth was strongest in Sweden supported by demand from the residential and infrastructure construction
Interim report January–March 2015 l 7 May 2015
© 2015 Ramirent 5
First-quarter EBITA below last year's level
5.2%
2.9%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
Q1/2014 Q1/2015
First–quarter EBITA amounted to 4.1 (7.1)
MEUR or 2.9% (5.2%) of net sales
EBITA margin Q1/2015 EBITA (MEUR) Q1/2015
Interim report January–March 2015 l 7 May 2015
7.1
4.1
0
1
2
3
4
5
6
7
8
9
10
Q1/2014 Q1/2015
EBITA decreased due to
• start-up costs in large Solutions projects • reorganisation of maintenance and repair
operations • price pressure in Finland and Norway
© 2014 Ramirent 6
First-quarter rolling 12 months ROI % weakened compared to the previous year
Return on invested capital % (rolling 12 months) Return on equity % (rolling 12 months)
13.9% 12.9%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
Q1/2014 Q1/2015
On a rolling 12 months basis, Return on invested
capital (ROI) was 12.9% (13.9%) in the first
quarter
On a rolling 12 months basis, Return on equity
(ROE) was 9.7% (13.6%) in the first quarter
Interim report January–March 2015 l 7 May 2015
13.6%
9.7%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
Q1/2014 Q1/2015
© 2015 Ramirent 7
Ramirent received large order for a total rental solution to the Urban Escape project in Stockholm
Complex construction project comprising offices, hotels, commercial and other premises Project will be carried out with ongoing commerce in the middle of Stockholm Large number of suppliers on the site
Easy access to equipment & services through customer centre on-site Equipment including lifts, hoists, scaffolding and fall protection equipment as well as power & heating from single point of contact Ramirent project team working with safety and logistics planning
CHALLENGE
SOLUTION & BENEFITS
Interim report January–March 2015 l 7 May 2015
URBAN ESCAPE construction project in Stockholm
Order value: EUR 40 million
(2015-2018)
© 2015 Ramirent
FLEET MANAGEMENT AND SOURCING
SALES AND PRICING
COMMON PLATFORM AND OTHER
8
Update on efficiency improvement actions Area
• New sales organisational model for Solutions and Customer Centre Sales in Sweden, Denmark, Norway
Steps implemented in 2014
• Centralising repair and maintenance to a few locations in the Nordic countries
• Compliance in usage of approved suppliers increased
• The number of Group-wide supplier agreements increased
Actions in Q1/2015
• Organisational changes related to Solutions and Customer Centre organisation continued
• Centralising of repair and maintenance continued
• Reduction of non-profitable fleet
• Supply Chain Management development continued
• New management structure
• Shared Service Centre established in Estonia
Interim report January–March 2015 l 7 May 2015
• New rental system live in Sweden, Denmark and Norway
• Integration of back-office functions between Denmark and Sweden
• Personnel reductions due to restructuring
© 2014 Ramirent
Shared Service Centre established in Estonia
9
1. Efficient production of financial services combining activities to be performed by a condensed Finance organisation
2. Realise synergies of harmonised processes in accordance with Ramirent’s strategy of operating a common business platform
3. Increase focus on business controlling and customers on country level
4. Sequenced roll-out schedule: Denmark as the first user; to be followed by other Nordic countries during 2015
Shared Service Centre (SSC) objectives
© 2014 Ramirent © 2015 Ramirent 10
Group performance
Segment review
Market outlook
Key figures
Financial position
Company overview
Appendix
© 2015 Ramirent 11
Finland Q1/2015: Price pressure due to slow underlying demand in construction and industry sectors
Net sales (MEUR) Highlights Q1/2015
35.1 31.6 32.0
05
101520253035404550
Q12013
Q2 Q3 Q4 Q12014
Q2 Q3 Q4 Q12015
Profitability Key figures
Strong performance in Southern Finland, supported by favourable demand in small and medium sized projects
Profitability burdened by price pressure and handling costs related to an increased number of small and medium sized projects
Net sales up by 1.3%
1) EBITA excluding non–recurring items was EUR 22.3 million or 14.6% in January–December 2014. The non–recurring items included EUR 1.5 million of restructuring costs and asset write-downs booked in the fourth quarter of 2014. Interim report January–March 2015 l 7 May 2015
KEY FIGURES 1–3/15
1–3/14
Change 1–12/14 Net sales 32.0 31.6 1.3% 152.8 EBITA 0.8 2.9 −72.4% 20.81) % of net sales 2.5% 9.3% 13.6%1) Capex 4.1 4.2 −2.6% 35.8 Capital employed 113.0 122.4 −7.7% 124.4 ROCE (%) 14.7% 20.7% 15.6% Personnel (FTE) 487 519 −6.2% 497 Customer centres 62 70 −11.4% 66
0%
5%
10%
15%
20%
25%
30%
Q12013
Q2 Q3 Q4 Q12014
Q2 Q3 Q4 Q12015
EBITA-margin (%) ROCE (%) R12
© 2015 Ramirent 12
Sweden Q1/2015: Sales growth supported by large Solutions projects
Net sales (MEUR) Highlights Q1/2015
50.3 45.4
51.0
0
10
20
30
40
50
60
Q12013
Q2 Q3 Q4 Q12014
Q2 Q3 Q4 Q12015
Key figures
In Stockholm and Gothenburg areas, residential and infrastructure construction fuelled demand Profitability strengthened mainly as a result of strong sales growth and increased fleet utilisation
Net sales up by 12.4% or by 19.1%
at comparable exchange rates
1) EBITA excluding non–recurring items was EUR 30.1 million or 14.9% of net sales in January–December 2014. The non–recurring items included EUR 0.7 million restructuring costs booked in the fourth quarter of 2014. Interim report January–March 2015 l 7 May 2015
KEY FIGURES 1–3/15
1–3/14 Change 1–12/14 Net sales 51.0 45.4 12.4% 201.0 EBITA 5.1 4.2 21.3% 29.41) % of net sales 10.0% 9.3% 14.6%1) Capex 3.9 9.9 −60.1% 67.3 Capital employed 157.4 160.6 −2.0% 155.0 ROCE (%) 16.9% 18.6% 16.9% Personnel (FTE) 760 666 14.1% 759 Customer centres 80 74 8.1% 77
Profitability
0%
5%
10%
15%
20%
25%
30%
Q12013
Q2 Q3 Q4 Q12014
Q2 Q3 Q4 Q12015
EBITA-margin (%) ROCE (%) R12
© 2015 Ramirent 13
Norway Q1/2015: Price pressure and costs from reorganising operations burdened profitability
Net sales (MEUR) Highlights Q1/2015
38.1 34.0
31.0
05
1015202530354045
Q12013
Q2 Q3 Q4 Q12014
Q2 Q3 Q4 Q12015
Key figures
Net sales impacted negatively by slow start to the year especially in the building construction sector Price pressure burdened profitability Reorganisation of maintenance and repair operations increased services and transportation costs
Net sales down by 8.7% or by 4.5% at
comparable exchange rates
1) EBITA excluding non–recurring items was EUR 16.2 million or 11.9% of net sales in January–December 2014. The non–recurring items included EUR 2.2 million of restructuring costs booked in the second half of the 2014. Interim report January–March 2015 l 7 May 2015
KEY FIGURES 1–3/15
1–3/14 Change 1–12/14 Net sales 31.0 34.0 −8.7% 135.7 EBITA 1.0 2.6 -60.8% 14.01) % of net sales 3.3% 7.6% 10.3%1) Capex 2.6 4.9 −47.7% 14.2 Capital employed 126.1 143.8 −12.3% 125.5 ROCE (%) 7.8% 11.7% 9.2% Personnel (FTE) 405 432 −6.3% 388 Customer centres 43 43 − 43
Profitability
0%
5%
10%
15%
20%
25%
30%
Q12013
Q2 Q3 Q4 Q12014
Q2 Q3 Q4 Q12015
EBITA-margin (%) ROCE (%) R12
© 2015 Ramirent 14
Denmark Q1/2015: Good progress in solutions projects
Net sales (MEUR) Highlights Q1/2015
9.1 9.6 9.4
02468
101214
Q12013
Q2 Q3 Q4 Q12014
Q2 Q3 Q4 Q12015
Key figures
Good progress of several Solutions projects supported sales in the first quarter Continued price pressure and weak performance in western Denmark had a negative impact on the profit level
Net sales down by 2.3%
1) EBITA excluding non–recurring items was EUR −3.8 million or −9.6% of net sales in January–December 2014. The non–recurring items included EUR 0.1 million restructuring costs that were booked in the fourth quarter of 2014.
Interim report January–March 2015 l 7 May 2015
KEY FIGURES 1–3/15
1–3/14 Change 1–12/14 Net sales 9.4 9.6 −2.3% 39.4 EBITA −1.4 −1.1 −23.7% −3.91) % of net sales −14.8% −11.7% −10.0%1) Capital expenditure 0.9 0.1 n/a 3.6 Capital employed 25.0 26.5 −5.8% 25.4 ROCE (%) −16.7% −14.6% −14.9% Personnel (FTE) 142 162 −12.2% 147 Customer centres 15 16 −6.3% 16
Profitability
-30%
-25%
-20%
-15%
-10%
-5%
0%
5%
Q12013
Q2 Q3 Q4 Q12014
Q2 Q3 Q4 Q12015
EBITA-margin (%) ROCE (%) R12
© 2015 Ramirent 15
Europe East Q1/2015: Strong performance in the Baltics continued
Net sales (MEUR) Highlights Q1/2015
5.2 6.2 6.6
0
2
4
6
8
10
12
Q12013
Q2 Q3 Q4 Q12014
Q2 Q3 Q4 Q12015
Key figures
Net sales up by 5.9%
In the Baltics, sales increased supported by favourable demand from small and medium sized customers. Good activity in the building construction sector continued in all Baltic countries Fortrent's EBITA improved as a result of successful cost savings, improved pricing and the good result in the new markets
Interim report January–March 2015 l 7 May 2015
KEY FIGURES 1–3/15
1–3/14
Change 1–12/14
Net sales 6.6 6.2 5.9% 33.9 EBITA 0.1 −0.1 n/a 6.7 % of net sales 1.9% −1.8% 19.6% Capex 3.8 2.7 40.4% 10.6 Capital employed 46.0 60.0 −23.2% 46.6 ROCE (%) 13.2% 8.9% 11.3% Personnel (FTE) 242 239 1.5% 240 Customer centres 43 42 2.4% 42
1) The first-quarter EBITA margin in Europe East excluding the non-taxable capital gain of EUR 10.1 million from the formation of Fortrent was 9.1 %
Profitability
-5%
0%
5%
10%
15%
20%
25%
30%
35%
Q12013
Q2 Q3 Q4 Q12014
Q2 Q3 Q4 Q12015
Baltia EBITA-margin (%) Baltia ROCE (%) R12Baltics EBITA margin (%)
Baltics ROCE (%) R12
© 2015 Ramirent 16
Europe Central Q1/2015: Profitability improved based on higher fleet utilisation rates and strict cost control
Net sales (MEUR) Highlights Q1/2015
11.0 11.8 11.0
02468
1012141618
Q12013
Q2 Q3 Q4 Q12014
Q2 Q3 Q4 Q12015
Key figures
Net sales down by 6.9% or by 6.6% at
comparable exchange rates
1) EBITA excluding non–recurring items was EUR 2.8 million or 5.3% of net sales in January–December 2014. The non–recurring items included EUR 1.1 million of restructuring costs and asset write-downs booked in the fourth quarter of 2014.
Interim report January–March 2015 l 7 May 2015
In Poland sales decreased, despite new projects especially in the energy sector, as the comparative period includes a large industrial project that ended 2014 Strong demand for equipment rental in the Czech Republic and Slovakia
Fleet utilisation rates improved due to new projects, reduction of unprofitable fleet and improved supply chain management
KEY FIGURES 1–3/15
1–3/14
Change 1–12/14 Net sales 11.0 11.8 −6.9% 53.2 EBITA −0.6 −1.2 53.7% 1.71) % of net sales −5.1% −10.2% 3.2%1) Capex 2.3 1.6 45.9% 7.8 Capital employed 59.0 64.3 −8.3% 58.5 ROCE (%) 3.7% 0.4% 2.6% Personnel (FTE) 481 474 1.4% 477 Customer centres 58 57 1.8% 58
Profitability
-25%-20%-15%-10%-5%0%5%
10%15%20%25%30%
Q12013
Q2 Q3 Q4 Q12014
Q2 Q3 Q4 Q12015
EBITA-margin (%) ROCE (%) R12
© 2014 Ramirent © 2015 Ramirent
Group performance
Segment review
Market outlook
Key figures
Financial position
Company overview
Appendix
17
© 2015 Ramirent 18
Strongest construction output growth expected in Sweden in 2015
Construction association’s estimates on construction output 2015
Nordic countries
Baltics and Europe Central
2015E
Finland -0.5%
Sweden 8.0%
Norway 3.7%
Denmark -1.9%
2015E
Estonia -4.0% Latvia -4.0% Lithuania 1.0% Poland 7.1% The Czech Republic 2.5% Slovakia 1.8%
Sources: Confederation of Finnish Construction Industries (RT) 3/2015, Swedish Construction Federation(BI) 3/2015, Prognosesenteret 3/2015, Danish Construction Industry (DB) 2/2015 and Euroconstruct 12/2014
Interim report January–March 2015 l 7 May 2015
Ramirent’s expectation on overall demand by equipment rental market 2015
© 2015 Ramirent 19
Nordic construction order books increased by 4.2% at comparable exchange rates in the first quarter
Nordic construction companies order books (at comparable exchange rates) billion
First-quarter Nordic construction order books including Skanska, NCC, YIT, Veidekke and Lemminkäinen increased by 4.2% at comparable exchange rates
Ramirent's rolling 12 months net sales were down by 2.4% in the first quarter
-40%
-20%
0%
20%
40%
60%
0
2
4
6
8
10
12
14
16
Q1 2007
Q2 Q3 Q4 Q1 2008
Q2 Q3 Q4 Q1 2009
Q2 Q3 Q4 Q1 2010
Q2 Q3 Q4 Q1 2011
Q2 Q3 Q4 Q1 2012
Q2 Q3 Q4 Q1 2013
Q2 Q3 Q4 Q1 2014
Q2 Q3 Q4 Q1 2015
NCC Skanska
Veidekke YIT*
Lemminkäinen Change in Net sales (y-o-y), R12 Ramirent
Change in order backlog (y-o-y), Nordic construction
Interim report January–March 2015 l 7 May 2015
Ramirent expects the market picture for 2015 to remain mixed, with challenging market conditions in especially Finland and Norway. We expect full-year 2015 net sales and EBITA margin to be similar to the level of 2014 when measured in local currencies.
Ramirent outlook for full year 2015 unchanged
© 2014 Ramirent © 2015 Ramirent
Group performance
Segment review
Market outlook
Key figures
Financial position
Company overview
Appendix
22
Finland Sweden Norway Denmark Baltics Central
Rol
ling
12
m
onth
s n
et S
ales
(M
EUR
)
Rol
ling
12
mon
ths
EBIT
A m
arg
in e
xcl.
n
on-r
ecu
rrin
g
item
s (%
)
Q1/2014 Q1/2015
Profitability remained at unsatisfactory level in our main operating segments
17.0% 16.5% 13.1%
-5.5%
18.3%
3.9%
13.2% 15.0%
11.0%
20.8%
6.6%
-10%
-5%
0%
5%
10%
15%
20%
25%
Finland Sweden Norway Denmark The Baltics Europe Central
148.5
202.4
149.5
44.4 32.0
58.1
153.2
206.6
132.7
39.1 34.3 52.4
0.0
50.0
100.0
150.0
200.0
Finland Sweden Norway Denmark The Baltics Europe Central
© 2014 Ramirent Interim report January–March 2015 l 7 May 2015
-10.4%
Non-recurring items in 2014: Finland: EUR 1.5 million of restructuring costs and asset write-downs were booked in the fourth quarter of 2014 Sweden: EUR 0.7 million of restructuring costs were booked in the fourth quarter of 2014 Norway: EUR 2.2 million of restructuring costs were booked in the second half of the 2014 Denmark: EUR 0.1 million of restructuring costs were booked in the fourth quarter of 2014 Europe Central:EUR 1.1 million of restructuring costs and asset write-downs were booked in the fourth quarter of 2014
© 2015 Ramirent 23
Service business is increasing
Net sales (MEUR) Breakdown of net sales (MEUR)
86.7 87.6
45.3 47.8
5.5 5.2
0
20
40
60
80
100
120
140
160
Q1/2014 Q1/2015
Income from sold equipment
Ancillary income
Rental income
1.0%
5.4%
−5.6%
137.5
-4.5 7.5
140.6
0
20
40
60
80
100
120
140
160
Q1/2014reported
Exchange rates Underlyingchange
Q1/2015reported
Weak Swedish and Norwegian krona impacted negatively on the net sales in euros Increasing service business will be a key to generate sustainable profitable growth
Interim report January–March 2015 l 7 May 2015
© 2015 Ramirent 24
First-quarter gross margin was negatively impacted by sales mix and higher materials and services costs
67.4% 62.3%
0%
20%
40%
60%
80%
100%
Q1/2014 Q1/2015
First–quarter gross margin was 87.6 (92.7)
MEUR or 62.3% (67.4%) of net sales
Gross margin Q1/2015 Gross profit (MEUR) Q1/2015
Interim report January–March 2015 l 7 May 2015
92.7 87.6
0
20
40
60
80
100
120
140
Q1/2014 Q1/2015
First-quarter gross margin was negatively impacted by a higher share of service sales, start-up costs in Solutions projects, reorganisation of maintenance and repair operations and price pressure
© 2015 Ramirent 25
Personnel reduction in Finland, Norway and Denmark
Customer centres Personnel (FTE)
334 302 301
Q12013
Q2 Q3 Q4 Q12014
Q2 Q3 Q4 Q1
Finland Sweden Norway Denmark Europe East -Baltics Europe Central
8 customer centres were closed in Finland and
6 new ones were opened in Sweden First-quarter employee benefit expenses
amounted to 37.8 (37.1) MEUR
Finland 487
Sweden 760
Norway 405
Denmark 142
Europe East -Baltic 242
Europe Central
481
Group: 2,608 (2,529)
Interim report January–March 2015 l 7 May 2015
© 2015 Ramirent 26
Rolling 12 months fixed costs decreased by EUR 10.5 compared to the previous year as a result of costs savings Fixed costs (MEUR) and % of Group net sales
65.9 60.9 59.6
43.1 % 44.3 %
42.4 %
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
0
10
20
30
40
50
60
70
80
Q12013
Q2 Q3 Q4 Q12014
Q2 Q3 Q4 Q12015
First-quarter fixed costs 59.6 (60.9) MEUR • Employee benefit
expenses 37.8 (37.1) MEUR
• Other operating expenses 21.9 (23.8) MEUR
Rolling 12 months fixed costs 237.0 (247.5) MEUR or 38.4% (39.2%) of net sales Rolling 12 months fixed costs excl. non-recurring costs 232.7 MEUR or 37.7% of net sales
Interim report January–March 2015 l 7 May 2015
© 2015 Ramirent 27
Group's rolling 12 months EBITA margin at 10.2%
12.1% 10.2%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
Q1/2014 (R12) Q1/2015 (R12)
Rolling 12 months EBITA 62.8 (76.6) MEUR or 10.2% (12.1%) of net sales
First-quarter EBITA margin was negatively impacted by a higher share of service sales, start-up costs in Solutions projects, reorganisation of maintenance and repair operations and price pressure
EBITA margin EBITA margin quarterly
Interim report January–March 2015 l 7 May 2015
7.6 %
13.3 %
15.4 %
12.1 %
10.2 %
2.7 %
8.7 %
14.8 %
5.2 %
2.9 %
-6%-4%-2%0%2%4%6%8%
10%12%14%16%18%20%
Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Q2 Q3 Q4 Q12014
Q2 Q3 Q4 Q12015
R12 EBITA-% EBITA-%
© 2015 Ramirent 28
Rolling 12 months EBITA excluding non-recurring items was 68.5 MEUR or 11.1 % of net sales
EBITA (MEUR) Q1/2015 rolling 12 months basis 1) Non-recurring items: -the loss from disposal Hungary 1.9 MEUR -1.5 MEUR restructuring costs in Denmark
2) Non-recurring items 5.7 MEUR including restructuring and asset write-downs 2) Restructuring and asset write-downs by segment:
Norway 2.2 MEUR Finland 1.5 MEUR Central 1.1 MEUR Sweden 0.7 MEUR Denmark 0.1 MEUR
Q1/2015 EBITA (R12) excl. non-recurring items was 68.5 (80.0) MEUR or 11.1% (12.7%) of net sales
12.1% 12.7% 10.2% EBITA margin 11.1%
Interim report January–March 2015 l 7 May 2015
76.6
62.8
3.41) 80.0
5.72)
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
Q1/2014 (R12)reported
non-recurringitems
Q1/2014 (R12)excl. non-
recurring items
Q1/2015 (R12)reported
non-recurringitems
Q1/2015 (R12)excl. non-
recurring items
68.5
© 2015 Ramirent 29
Internal development work to improve margins in all segments continues
Rolling 12 months EBITA margin excl. non-recurring items by segment (%)
13.2 15.0
11.0
-10.4
20.8
6.6
11.1
-5
0
5
10
15
20
Finland Sweden Norway Denmark Baltics Europe Central Group
Group EBITA targeted to reach 17% … …by delivering at least 18% EBITA
margin on segment level
18%
10%
Target = 17%
Interim report January–March 2015 l 7 May 2015
© 2015 Ramirent 30
We held back investments due to market uncertainty in two of our key countries
Gross capital expenditure (MEUR) and % of net sales
32.4
23.4
18.1
21.2% 17.0%
12.9%
0%
10%
20%
30%
40%
50%
60%
0
10
20
30
40
50
60
70
80
Q12013
Q2 Q3 Q4 Q12014
Q2 Q3 Q4 Q12015
Gross Capex Share of net sales-%
First-quarter gross capex 18.1 (23.4) MEUR of which 0.0 (0.0) MEUR related to acquisitions
Gross capex 12.9% (17.0%) of net sales in the first quarter Second-quarter 2014 gross capex included 46.0 MEUR of acquisitions
Interim report January–March 2015 l 7 May 2015
© 2015 Ramirent 31
Selective fleet investments and reduction of unprofitable fleet
Capital expenditure by segment (MEUR)
Investments in the fleet
4.2
9.9
4.9
0.1
2.7
1.6
4.1
3.9
2.6
0.9
3.8
2.3
0 2 4 6 8 10 12
Finland
Sweden
Norway
Denmark
East
CentralQ1/15
Q1/14
First-quarter investments in machinery and equipment 15.9 (22.0) MEUR Committed investments on rental machinery amounted to 42.7 (23.3) MEUR at the end of the first quarter Sales value of sold rental machinery and equipment was 5.2 (5.5) MEUR in the first quarter
Interim report January–March 2015 l 7 May 2015
© 2015 Ramirent 32
Cash conversion improved due to strong operative cash flow in the first quarter
Cash flow after investments (MEUR) Cash conversion (MEUR and %)
19
-5 -5
1
-30
-20
-10
0
10
20
30
40
Q12013
Q2 Q3 Q4 Q12014
Q2 Q3 Q4 Q1
The Group’s cash flow from operating activities
increased to 18.3 (11.4) MEUR in the first quarter
First-quarter cash flow from investing activities was
−17.4 (−16.4) MEUR
Group's first-quarter cash conversion improved to
3.2% (-16.0%)
Interim report January–March 2015 l 7 May 2015
-100%
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
-80
-60
-40
-20
20
40
60
80
EBITDA (MEUR)Cashflow after investments (MEUR)Cash Conversion
© 2015 Ramirent 33
Return on investment at 12.9% at the end of the first quarter
Return on investment % (rolling 12 months) ROI % and Invested capital MEUR
13.9% 12.9%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
Q1/2014 Q1/2015
508
565
654
545 520
9.3%
19.6% 18.9%
13.9% 12.9%
0%
5%
10%
15%
20%
25%
0
100
200
300
400
500
600
700
Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Q2 Q3 Q4 Q12014
Q2 Q3 Q4 Q12015
Rolling 12 months ROI at the end of March 2015
was 12.9% (13.9%)
Return on investment decreased compared year-
on-year mainly due to lower profit generation
The Group's invested capital decreased to 520.3
(545.1) MEUR in the first quarter
Interim report January–March 2015 l 7 May 2015
© 2015 Ramirent 34
Highest ROCE % in Sweden supported by margin improvement in Q1/2015
20.7% 18.6%
11.7%
-14.6%
8.9%
0.4%
14.7% 16.9%
7.8%
-16.7%
13.2%
3.7%
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
Finland Sweden Norway Denmark East Central
Q1/14 Q2/14 Q3/14Q4/14 Q1/15
Ramirent publishes ROCE % by
operating segment as of Q1/2015
How we are improving ROCE %? Pricing Growing service business Strict cost control Focus on fleet utilisation Working capital management
Interim report January–March 2015 l 7 May 2015
Return on capital employed % (rolling 12 months)
© 2015 Ramirent 35
Return on equity at 9.7%
Return on equity % (rolling 12 months) ROE % and Total equity (MEUR)
13.6%
9.7%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
Q1/2014 Q1/2015
316 305
342 330
291
6.3%
16.9%
20.7%
13.6%
9.7%
-5%
0%
5%
10%
15%
20%
25%
0
50
100
150
200
250
300
350
400
Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Q2 Q3 Q4 Q12014
Q2 Q3 Q4 Q1
Financial target: ROE of 18% over a
business cycle
The Group's total equity amounted to MEUR 291.1
(330.3) at the end of March
Equity per share was 2.70 (3.07) at the of end of
March
Target 18%
Interim report January–March 2015 l 7 May 2015
© 2014 Ramirent © 2015 Ramirent 36
Group performance
Segment review
Market outlook
Key figures
Financial position
Company overview
Appendix
© 2015 Ramirent 37
Net debt to EBITDA ratio below the long-term financial target now for 14 consecutive quarters
Net debt (MEUR) Net debt to EBITDA ratio
220.3 212.0 226.2
0
50
100
150
200
250
300
Q12013
Q2 Q3 Q4 Q12014
Q2 Q3 Q4 Q12015
1.4x
1.2x
1.0x
1.2x
1.4x
0.0
0.5
1.0
1.5
2.0
2.5
Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Q2 Q3 Q4 Q12014
Q2 Q3 Q4 Q12015
Net debt increased compared to the previous
year amounting to 226.2 (212.0) MEUR
Net debt to EBITDA 1.4x (1.2x) at the end of
March, which was below Ramirent's long-term
financial target of maximum 1.6x at the end of
each fiscal year
Target max. 1.6x
Interim report January–March 2015 l 7 May 2015
© 2015 Ramirent 38
Equity ratio at 38.6% and gearing at 77.7%
Equity ratio (%) Gearing (%)
38.2%
43.8% 38.6%
0%
10%
20%
30%
40%
50%
60%
Q12013
Q2 Q3 Q4 Q12014
Q2 Q3 Q4 Q12015
64.5% 64.2%
77.7%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Q12013
Q2 Q3 Q4 Q12014
Q2 Q3 Q4 Q12015
First-quarter equity ratio decreased to 38.6%
(43.8%)
Total equity amounted to 291.1 (330.3) MEUR at the
end the first quarter
Gearing increased to 77.7% (64.2%)
Net debt 226.2 (212.0) MEUR at the end of March
2015
Interim report January–March 2015 l 7 May 2015
© 2015 Ramirent 39
Negative working capital mainly due to recognition of the 2014 dividend as a liability
Working capital (MEUR) Working capital / Rolling 12 months net sales
5.9%
5.2%
-1.1%
-1.8% -2.4%
-2.0%
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Q2 Q3 Q4 Q12014
Q2 Q3 Q4 Q12015
First-quarter credit losses and change in the
allowance for bad debt amounted to -0.8 (-1.5) MEUR
First-quarter inventories increased to 19.8 (12.6)
MEUR due to purchased equipment not yet taken into
rental use
Working capital of rolling 12 months net sales was
-2.0% (-2.4%) at the end of March 2015
Dividend of 43.1 (39.9) MEUR was paid in April
2015
Interim report January–March 2015 l 7 May 2015
15.3 12.6 19.8
115.4 108.6 108.7
-143.3 -136.6 -141.0
-200
-150
-100
-50
0
50
100
150
200
Q12013
Q2 Q3 Q4 Q12014
Q2 Q3 Q4 Q12015
Trade payables and other liabilities
Trade and other receivables
Inventories
© 2015 Ramirent 40
At the end of March 2015, Ramirent had unused committed back–up loan facilities of EUR 189.0 million
Repayment schedule of interest-bearing liabilities (MEUR) Ramirent had unused committed back-up loan facilities of MEUR 189.0 (202.1) available at the end of the first quarter
The average interest rate of the loan portfolio including interest rate hedges was 3.0% (3.8%) at the end of the March
In addition to bank facilities, Ramirent is utilising a domestic commercial paper program of up to EUR 150 million
Net debt EUR 226.2 million
EUR 415.0 million in committed credit facilities
Senior unsecured bond
Interim report January–March 2015 l 7 May 2015
75
95
100
145
2015 2016 2017 2018 2019 2020
© 2015 Ramirent 41
The AGM authorised the Board to decide at its discretion to distribute an additional dividend of max. EUR 0.60 per share
Earnings Per Share and Dividend Per Share
0.13
0.41
0.59
0.50
0.30 0.25
0.28 0.34
0.37
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80
0.90
1.00
2010 2011 2012 2013 2014
EPS DPS
An ordinary dividend of EUR 0.40 (0.37) per share was paid on 10 April 2015
The AGM 2015 authorised the Board to decide at its discretion on the payment of an additional dividend up to the amount of EUR 0.60 per share The authorisation is valid until the Annual General Meeting 2016 At times when cash generation is above the level likely to be required to support growth, the Board will consider paying higher than ordinary dividends
1.00
0.40
0.60
Interim report January–March 2015 l 7 May 2015
© 2015 Ramirent 42
Two of our long-term financial targets were met in the first quarter of 2015
Leverage and risk
Profit generation
Dividend
Element Target level
ROE
Net Debt / EBITDA
ratio
Dividend pay-out
ratio
18% p.a. over a business cycle
Below 1.6x at the end of each fiscal year
At least 40% of Net profit
Measure 1-3/2015
9.7%
1.4x
132% of 2014 net profit
STATED OBJECTIVES
Interim report January–March 2015 l 7 May 2015
For further information: Magnus Rosén, President and CEO, tel. +358 20 750 2845
Jonas Söderkvist, CFO, tel. +358 20 750 3248 Franciska Janzon, IR, tel. +358 20 750 2859
www.ramirent.com
© 2014 Ramirent © 2015 Ramirent 44
Group performance
Segment review
Market outlook
Key figures
Financial position
Company overview
Appendix
© 2015 Ramirent Interim report January–March 2015 l 7 May 2015
Ramirent is a generalist equipment rental and service company
45
Where Geographic presence
Home market Europe with focus on the Baltic Rim
How Concept
Ramirent is a generalist rental company, with an extensive customer centre network enabling customer proximity while managing through decentralised operations
What Offering
Ramirent’s business offering stretches from single products to managing the entire fleet capacity at a customer site
Who
Customers Ramirent’s diverse customer base includes construction, industry, services, the public sector and private households
301 customer centres in 10
countries
2,608 employees serving 200,000 customers with
200,000 rental items
MEUR 614 of sales (2014)
Definition of Ramirent's business and strategic choices
© 2015 Ramirent 46
Vision To be the leading and most progressive equipment rental solutions company in Europe, setting the benchmark for industry performance and customer service
Values Open Engaged Progressive
Mission We simplify business by delivering Dynamic Rental SolutionsTM
Brand promise More than Machines
Our strategic choices
Interim report January–March 2015 l 7 May 2015
© 2015 Ramirent 47
Strong market position in core Baltic Rim markets
Europe Central
(PL+CZ+SL) # 1
58 customer centres
Finland # 1
62 customer centres
Sweden # 2
80 customer centres
Norway # 1
43 customer centres
Denmark # 1
15 customer centres
Europe East –Baltics
# 2 43 customer
centres
Finland 23%
Sweden 36%
Norway 22%
Denmark 7%
Europe East -Baltics
5%
Europe Central 8%
Sales per customers 1-3/2015
Construction 66%
Industrial 17%
Services & Retail 13 %
Public 4%
Private 2%
Current state close to target of 40% non-construction dependent sales
Russia and Ukraine presence through JV Fortrent
Sales per segment 1-3/2015
Fehmarnbelt Solutions Services A/S, JV with Zeppelin Rental
Interim report January–March 2015 l 7 May 2015
© 2015 Ramirent Event / Name of presentor 48
614
0 200 400 600 800 1000
Loxam*
Cramo
Ramirent
AlgecoScotsman*
Kiloutou*
Sarens*
Speedy Hire*
Liebherr-Mietpartner*
MediacoLevage*ZeppelinRental*
Net sales 2014 (MEUR) Net sales 2014 (MEUR)
Largest rental companies in Europe Largest rental companies globally
One of the leading equipment rental companies both in Europe (#3) and globally (#10)
614
0 1000 2000 3000 4000 5000 6000
United Rentals
Aggreko*
Ashtead Group*
AlgecoScotsman*
Herz EquipmentRental*
Aktio Corp*
Loxam*
Coates Hire*
Cramo
Ramirent
*Net sales in 2013
*Net sales in 2013
Interim report January–March 2015 l 7 May 2015
49
Our offering
MODULE AND SITE EQUIPMENT
HEAVY MACHINERY ACCESS EQUIPMENT
PLANNING
LIGHT EQUIPMENT
LOGISTICS
ON-SITE SERVICES
RENTAL INSURANCE
TRAINING ACCESSORIES
Ramirent SpaceSolveTM
Ramirent SafeSolveTM
Ramirent EcoSolveTM
Ramirent PowerSolveTM
Ramirent ClimateSolveTM
Ramirent AccessSolveTM
Ramirent TotalSolveTM
MACHINERY AND EQUIPMENT SERVICES
SOLUTION AREAS
Interim report January–March 2015 l 7 May 2015
© 2015 Ramirent 50
Equipment Services Rental Business and Sector Knowledge
Benefits Lighter balance sheets, less investments
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
Benefits Understanding customer requirements helps to customise product selection and further improve productivity
Heavy Equipment
Access Equipment Lifts, Hoists,
Scaffolding, Tower cranes
Modules and site equipment
Light Equipment Tools, power and heating
equipment
• Planning
• On-site services
• Logistics
• Merchandise sale
• Rental insurance
• Training
• Construction
• Mining
• Paper
• Power generation
• Oil & Gas
• Shipyards
• Retail & Service
• Public sector
• Households
Integrated Solutions
Benefits Easy to buy, reduced number of subcontractors, increased focus on the core business
Ramirent combines the best equipment, services and knowhow into integrated rental solutions
8%
32%
21%
39%
Share of Group rental income (1-3/2015)
Interim report January–March 2015 l 7 May 2015
© 2014 Ramirent 51
Through a diversified business portfolio
One company
Sustainable profitable
growth
Agility in managing business
We are committed to our long-term strategic objectives to achieve sustainable profitable growth
Customer first through NextRamirent
Realised synergies of scale and scope while maintaining local accountability
More Proactive More Competent More Conscious More Safe & Green More Efficient
Leading and most profitable general rental company in markets where present, growing in selected growth pockets
Geographies
Customers Competences
Products
improvement agenda
Interim report January–March 2015 l 7 May 2015
© 2015 Ramirent 52
Increased market share
Growth within current business
Extended customer value
proposition
Increasing services and integrated solutions
Increased penetration
Outsourcing opportunities
Increased footprint
New customer segments
New geographies
M&A
Acquisitions, joint ventures
and other transactions
1 2 3 4 5
The five components of Ramirent's growth strategy
Interim report January–March 2015 l 7 May 2015
© 2015 Ramirent 53
Room for rental penetration to further increase in the Nordic countries
Equipment rental penetration 2014E (%)
3.5%
2.0%
1.5% 1.7%
Rental penetration (%)*
Sweden Norway Finland Denmark
Source: European Rental Association 11/2014; Rental Turnover / Total construction output
HIG
H
MED
IUM
LO
W
Average penetration in Europe: 1.5%
Interim report January–March 2015 l 7 May 2015
© 2015 Ramirent 54
Ramirent has a proven track record in outsourcing deals and M&A transactions
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
M&A critera
Complimentary product ranges or related services
Extending geography to "white spots"
Strengthening links to new customer segments"
Outsourcing of customer's in-house fleets
Targets mid-size companies mainly
Bautas AS
(outsourcing)
Altima AB
(outsourcing)
Basis for Norwegian business
Basis for Swedish and Danish business
Acquisitions in Sweden, Poland
and Hungary
Expansion to the Czech Republic,
bolt-on acquisitions in Finland and
Sweden
Acquisitions in the Nordic countries
Entry into Slovakia
Acquisitions and outsourcings mainly in the
Nordic countries
Nine acquisitions and three
outsourcings
Entry into oil & gas industry in
Norway (Rogaland Planbygg)
Divestments of formwork
business in Finland and the
Hungarian operations
DCC
(outsourcing)
(tower cranes)
Fortrent JV with Cramo in Russia
& Ukraine
Interim report January–March 2015 l 7 May 2015
© 2015 Ramirent 55
Ramirent's Financial Business Model: Three complimentary drivers of value creation
• Volumes • Upselling
• Pricing • Fleet management • Sourcing • Cost structure • Quality of earnings
• Cash conversion • Capex • Working capital • Dividend • Capital Structure
Organic Growth Operating Leverage Financial Leverage
Cash Flow
Target EBITA margin of 17%
Net debt/ EBITDA target of below 1.6x (at y/e)
Capital
Expenditure
ROE target of 18% over the cycle
Dividend pay-out ratio: at least 40% of net profit
Interim report January–March 2015 l 7 May 2015
© 2015 Ramirent 56
Customer
service level
Total costs
Non- available
fleet
Capital efficiency
Optimising fleet maintenance strategy
Resourcing and repair & maintenance locations
Optimising workshop processes
Balanced fleet age structure
Fleet management activities
Efficiency utilisation* (%) R3 months
Total Fleet Yield** (%) R3 months
∗) 𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸 𝑢𝑢𝑢𝑢𝐸𝐸𝑢𝑢𝐸𝐸𝑢𝑢𝑢𝑢𝑢𝑢𝐸𝐸𝑢𝑢𝐸𝐸 =𝐴𝐴𝐸𝐸𝐴𝐴𝑢𝑢𝐸𝐸𝑢𝑢𝐸𝐸𝑢𝑢𝐸𝐸𝑢𝑢𝐸𝐸 𝑣𝑣𝑢𝑢𝑢𝑢𝑢𝑢𝐸𝐸 𝑢𝑢𝐸𝐸 𝑟𝑟𝐸𝐸𝐸𝐸𝑢𝑢𝐸𝐸𝑟𝑟 𝐸𝐸𝑢𝑢𝐸𝐸𝐸𝐸𝑢𝑢𝐴𝐴𝐸𝐸𝐴𝐴𝑢𝑢𝐸𝐸𝑢𝑢𝐸𝐸𝑢𝑢𝐸𝐸𝑢𝑢𝐸𝐸 𝑣𝑣𝑢𝑢𝑢𝑢𝑢𝑢𝐸𝐸 𝑢𝑢𝐸𝐸 𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢 𝐸𝐸𝑢𝑢𝐸𝐸𝐸𝐸𝑢𝑢
∗ 100 %
∗∗) 𝑇𝑇𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢 𝐹𝐹𝑢𝑢𝐸𝐸𝐸𝐸𝑢𝑢 𝑌𝑌𝐸𝐸𝐸𝐸𝑢𝑢𝑟𝑟 =𝑅𝑅𝐸𝐸𝐸𝐸𝑢𝑢𝑢𝑢𝑢𝑢 𝐸𝐸𝐸𝐸𝐸𝐸𝑢𝑢𝑖𝑖𝐸𝐸 ∗ 100 %
𝐴𝐴𝐸𝐸𝐴𝐴𝑢𝑢𝐸𝐸𝑢𝑢𝐸𝐸𝑢𝑢𝐸𝐸𝑢𝑢𝐸𝐸 𝑣𝑣𝑢𝑢𝑢𝑢𝑢𝑢𝐸𝐸 𝑢𝑢𝐸𝐸 𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢 𝐸𝐸𝑢𝑢𝐸𝐸𝐸𝐸𝑢𝑢
Goals KPIs
Efficient logistics
Fleet management potential realised at different levels
Interim report January–March 2015 l 7 May 2015
© 2015 Ramirent 57
Market Cap EUR 712.1 million
Trading information Listing: NASDAX Helsinki
Date of listing: April 30, 1998 Segment: Mid Cap Sector: Industrials
Trading code: RMR1V
16%
8%
13%
2% 31%
30%
Private companies
Public sector organizations
Households
Non-profit organizations
Foreigners
Finance and insurance companies
Shareholders March 31, 2015
Largest shareholders March 31, 2015
Number of shares
% of share
capital
1. Nordstjernan AB 30,393,716 27.96%
2. Oy Julius Tallberg Ab 12,207,229 11.23%
3. Nordea funds 5,288,187 4.87%
4. Ilmarinen Mutual Pension Insurance Company 3,945,154 3.63%
5. Varma Mutual Pension Insurance Company 3,640,865 3.35%
6. Aktia funds 2,092,733 1.93%
7. Veritas 975,182 0.90%
8. Ramirent Plc 960,649 0.88%
9. Oslo Pensjonsforsikring As 800,000 0.74%
10. Skandinaviska Enskilda Banken 777,605 0.71%
Other shareholders 47,623,008 43.81%
Total 108,697,328 100.00%
Largest shareholders at the end of March 2015
Interim report January–March 2015 l 7 May 2015
© 2015 Ramirent
Attractive market - structural growth drivers and cyclical recovery potential
Number 1 position - market leader in 7/10 countries
Strong platform - above industry average profitability, balanced risk level and increasing operational excellence
Growth potential - 5 point growth strategy to capitalise on strong position
Financial strength – industry leading cash generation and leverage potential to finance growth, drive ROE and increase dividends
Proven management track record – experienced management has reshaped the company since 2008
58
Return on equity of 18% over a business cycle
YE net debt to EBITDA of below 1.6x
Dividend pay-out ratio of at least 40% of net profit
EBITA margin of 17%
How will we deliver on our financial targets and create shareholder value?
Company highlights Stated objectives
Interim report January–March 2015 l 7 May 2015
© 2014 Ramirent © 2014 Ramirent 59
Group performance
Segment review
Market outlook
Key figures
Financial position
Company overview
Appendix
© 2014 Ramirent 60
Consolidated statement of income
Interim report January–March 2015 l 7 May 2015
CONSOLIDATED STATEMENT OF INCOME 1–3/15
1–3/14
1–12/14 (EUR 1,000) Rental income 87,605 86,724 395,341 Ancillary income 47,757 45,293 193,481 Sales of equipment 5,214 5,521 24,714 NET SALES 140,575 137,538 613,536 Other operating income 668 349 2,290 Materials and services −52,938 −44,857 −209,162 Employee benefit expenses −37,772 −37,129 −150,305 Other operating expenses −21,881 −23,792 −88,003 Share of result in associates and joint ventures −49 −429 −486 Depreciation, amortisation and impairment charges −26,640 −26,303 −109,728 EBIT 1,963 5,376 58,143 Financial income 5,021 2,095 11,292 Financial expenses −7,199 −4,252 −26,974 Total financial income and expenses −2,178 −2,157 −15,683 EBT −215 3,220 42,460 Income taxes 49 −660 −10,370 RESULT FOR THE PERIOD −166 2,559 32,090 Result for the period attributable to: Shareholders of the parent company −27 2,559 32,632 Non-controlling interest −139 − −542 TOTAL −166 2,559 32,090 Earnings per share (EPS) on parent company shareholders’ share of result
Basic, EUR −0.00 0.02 0.30 Diluted, EUR −0.00 0.02 0.30
© 2014 Ramirent 61
Consolidated statement of financial position
Interim report January–March 2015 l 7 May 2015
CONSOLIDATED STATEMENT OF FINANCIAL POSITION 31/3/2015
31/3/2014
31/12/2014 (EUR 1,000) ASSETS NON–CURRENT ASSETS Goodwill 141,767 124,690 139,780 Other intangible assets 46,076 38,108 46,720 Property, plant and equipment 402,443 427,841 406,001 Investments in associates and joint ventures 8,717 15,003 5,278 Non–current loan receivables 17,171 20,261 17,666 Available–for–sale investments 143 519 139 Deferred tax assets 483 815 605 TOTAL NON–CURRENT ASSETS 616,801 627,236 616,189
CURRENT ASSETS Inventories 19,838 12,561 12,431 Trade and other receivables 108,686 108,577 109,370 Current tax assets 6,264 3,252 2,775 Cash and cash equivalents 3,066 2,784 3,129 TOTAL CURRENT ASSETS 137,854 127,173 127,705 TOTAL ASSETS 754,655 754,409 743,894
© 2014 Ramirent 62
Consolidated statement of financial position (cont.)
Interim report January–March 2015 l 7 May 2015
(EUR 1,000) EQUITY AND LIABILITIES
EQUITY
Share capital 25,000 25,000 25,000
Revaluation fund −897 −1,291 −976
Invested unrestricted equity fund 113,862 113,767 113,767
Retained earnings from previous years 152,607 190,263 153,876
Result for the period −27 2,559 32,632
Equity attributable to the parent company shareholders 290,545 330,298 324,299
Non-controlling interest 543 − 693
TOTAL EQUITY 291,088 330,298 324,992
NON–CURRENT LIABILITIES
Deferred tax liabilities 51,497 53,833 50,798
Pension obligations 18,041 14,087 17,491
Non–current provisions 2,188 1,186 2,371
Non–current interest–bearing liabilities 188,013 206,721 206,685
Other non–current liabilities 19,582 − 19,890
TOTAL NON–CURRENT LIABILITIES 279,321 275,827 297,236
CURRENT LIABILITIES
Trade payables and other liabilities 140,954 136,582 92,798
Current provisions 995 525 1,455
Current tax liabilities 1,060 3,136 3,899
Current interest–bearing liabilities 41,237 8,042 23,514
TOTAL CURRENT LIABILITIES 184,246 148,285 121,666
TOTAL LIABILITIES 463,567 424,112 418,902
TOTAL EQUITY AND LIABILITIES 754,655 754,409 743,894
CONSOLIDATED STATEMENT OF FINANCIAL POSITION 31/3/2015
31/3/2014
31/12/2014
© 2014 Ramirent 63
Key financial figures
Interim report January–March 2015 l 7 May 2015
KEY FINANCIAL FIGURES 1–3/15
1–3/14
1–12/14
(MEUR) Net sales, EUR million 140.6 137.5 613.5
Change in net sales, % 2.2% −10.0% −5.2%
EBITDA, EUR million 28.6 31.7 167.9
% of net sales 20.3% 23.0% 27.4%
EBITA, EUR million 4.1 7.1 65.8
% net sales 2.9% 5.2% 10.7%
EBIT, EUR million 2.0 5.4 58.1
% of net sales 1.4% 3.9% 9.5%
EBT, EUR million −0.2 3.2 42.5
% of net sales −0.2% 2.3% 6.9%
Result for the period attributable to the owners of the
parent company, EUR million −0.0 2.6 32.6
% of net sales −0.0% 1.9% 5.3%
Gross capital expenditure, EUR million 18.1 23.4 144.6
% of net sales 12.9% 17.0% 23.6%
Invested capital, EUR million, end of period 520.3 545.1 555.2
Return on invested capital (ROI), %1) 12.9% 13.9% 12.2%
Return on equity (ROE), %1) 9.7% 13.6% 9.4%
Interest–bearing debt, EUR million 229.2 214.8 230.2
Net debt, EUR million 226.2 212.0 227.1
Net debt to EBITDA ratio1) 1.4x 1.2x 1.4x
Gearing, % 77.7% 64.2% 69.9%
Equity ratio, % 38.6% 43.8% 43.7%
Personnel, average during reporting period 2,593 2,536 2,566
Personnel, at end of reporting period 2,608 2,529 2,576
1) The figures are calculated on a rolling twelve month basis
© 2014 Ramirent 64
Consolidated cash flow statement
Interim report January–March 2015 l 7 May 2015
CONSOLIDATED CASH FLOW STATEMENT 1–3/15
1–3/14
1–12/14 (EUR 1,000) CASH FLOW FROM OPERATING ACTIVITIES EBT −215 3,220 42,460 Adjustments Depreciation, amortisation and impairment charges 26,640 26,303 109,728 Adjustment for proceeds from sale of used rental equipment 2,117 2,612 17,136 Financial income and expenses 2,178 2,157 15,683 Other adjustments 108 4,090 −6,140 Cash flow from operating activities before change in working capital 30,828 38,380 178,867 Change in working capital Change in trade and other receivables −949 2,029 −2,150 Change in inventories −7,150 −644 −1,472 Change in non–interest–bearing liabilities 4,591 −24,191 −12,302 Cash flow from operating activities before interest and taxes 27,320 15,574 162,942 Interest paid −3,742 −157 −10,418 Interest received 63 − 620 Income tax paid −5,340 −4,059 −12,646 NET CASH FLOW FROM OPERATING ACTIVITIES 18,303 11,358 140,499
© 2014 Ramirent
CASH FLOW FROM INVESTING ACTIVITIES Acquisition of businesses and subsidiaries, net of cash − − −29,872 Investments in associates and joint ventures −736 − − Investment in tangible non–current asset (rental equipment) −15,791 −20,658 −88,902 Investment in other tangible non–current assets −429 −86 −504 Investment in intangible non–current assets −1,039 −1,320 −9,680 Proceeds from sale of tangible and intangible non–current assets
(excluding used rental equipment) 109 5,632 7,713 Loan receivables, increase, decrease and other changes 495 − 2,594 NET CASH FLOW FROM INVESTING ACTIVITIES −17,391 −16,432 −118,651 CASH FLOW FROM FINANCING ACTIVITIES Dividends paid − − −39,858 Borrowings and repayments of current debt (net) 17,704 6,009 22,686 Borrowings of non–current debt − − 2,651 Repayments of non–current debt −18,679 − −6,047 NET CASH FLOW FROM FINANCING ACTIVITIES −975 6,009 −20,567 NET CHANGE IN CASH AND CASH EQUIVALENTS
DURING THE FINANCIAL YEAR −63 935 1,281 Cash at the beginning of the period 3,129 1,849 1,849 Translation differences − − − Change in cash −63 935 1,281 Cash at the end of the period 3,066 2,784 3,129
65
Consolidated cash flow statement (cont.)
Interim report January–March 2015 l 7 May 2015
CONSOLIDATED CASH FLOW STATEMENT 1–3/15
1–3/14
1–12/14
© 2014 Ramirent 66
Net sales
Interim report January–March 2015 l 7 May 2015
NET SALES 1–3/15
1–3/14
1–12/14 (MEUR) FINLAND - Net sales (external) 32.0 31.5 151.9 - Inter–segment sales 0.0 0.2 0.9 SWEDEN - Net sales (external) 50.8 45.3 200.4 - Inter–segment sales 0.2 0.1 0.7 NORWAY - Net sales (external) 30.9 33.4 135.1 - Inter–segment sales 0.1 0.6 0.6 DENMARK - Net sales (external) 9.3 9.6 39.4 - Inter–segment sales 0.0 − − EUROPE EAST - Net sales (external) 6.6 6.2 33.8 - Inter–segment sales 0.0 0.0 0.1 EUROPE CENTRAL - Net sales (external) 11.0 11.6 52.9 - Inter–segment sales 0.0 0.2 0.3 Elimination of sales between segments −0.4 −1.1 −2.4 GROUP NET SALES 140.6 137.5 613.5
© 2014 Ramirent 67
EBITA
Interim report January–March 2015 l 7 May 2015
EBITA 1–3/15
1–3/14
1–12/14 (MEUR and % of net sales) FINLAND 0.8 2.9 20.8 % of net sales 2.5% 9.3% 13.6% SWEDEN 5.1 4.2 29.4 % of net sales 10.0% 9.3% 14.6% NORWAY 1.0 2.6 14.0 % of net sales 3.3% 7.6% 10.3% DENMARK −1.4 −1.1 −3.9 % of net sales −14.8% −11.7% −10.0% EUROPE EAST 0.1 −0.1 6.7 % of net sales 1.9% −1.8% 19.6% EUROPE CENTRAL −0.6 −1.2 1.7 % of net sales −5.1% −10.2% 3.2% Net items not allocated to segments −1.0 −0.2 −2.8 GROUP EBITA 4.1 7.1 65.8 % of net sales 2.9% 5.2% 10.7%
© 2014 Ramirent
Non-recurring items impacting EBITA by segment
68
Non-recurring items impacting EBITA 1–3/15 1–3/14 1–12/14 (MEUR)
FINLAND − − −1.51)
SWEDEN − − −0.72)
NORWAY − − −2.23)
DENMARK − − −0.14)
EUROPE EAST − − −
EUROPE CENTRAL − − −1.15)
Unallocated items and eliminations − − −
TOTAL − − −5.7
1) EUR 1.5 million of restructuring costs and asset write-downs were booked in the fourth quarter of 2014 2) EUR 0.7 million of restructuring costs were booked in the fourth quarter of 2014 3) EUR 2.2 million of restructuring costs were booked in the second half of the 2014 4) EUR 0.1 million of restructuring costs were booked in the fourth quarter of 2014 5) EUR 1.1 million of restructuring costs and asset write-downs were booked in the fourth quarter of 2014
Interim report January–March 2015 l 7 May 2015
For further information: Magnus Rosén, President and CEO, tel. +358 20 750 2845
Jonas Söderkvist, CFO, tel. +358 20 750 3248 Franciska Janzon, IR, tel. +358 20 750 2859
www.ramirent.com