rr results q4_2012_en_final
TRANSCRIPT
FINANCIAL STATEMENTS 2012 February 12, 2013 CEO Magnus Rosén CFO Jonas Söderkvist
Financial Statements 2012
Agenda
Highlights: Q4 and FY2012
Market outlook and guidance Segment review Financial Review Company overview
Appendix
2 Agenda
Financial Statements 2012 3
Highlights: Q4/2012
Net sales MEUR 194.1 (186.8) up 3.9% or 0.5% at comparable exchange rates EBITDA MEUR 56.5 (55.0) EBITDA–margin 29.1% (29.4%) EBITA MEUR 29.4 (27.3) EBITA–margin 15.2% (14.6%) EBIT MEUR 27.5 (25.5) EBIT–margin 14.2% (13.6%) Gross capex MEUR 36.8 (45.9) Cash flow after investments MEUR 16.8 (15.9) Decision on formation of a joint venture with Cramo in Russia and Ukraine
Highlights: FY2012 and Q4
Financial Statements 2012 4
January–December 2012: Profitability improved and all–time high sales
Net sales MEUR 714.1 (649.9) up 9.9% or 7.7% at comparable exchange rates EBITDA MEUR 210.2 (181.8) EBITDA–margin 29.4% (28.0%) EBITA MEUR 100.3 (79.4) EBITA–margin 14.1% (12.2%) EBIT MEUR 92.3 (74.1) EBIT–margin 12.9% (11.4%) Gross capex MEUR 124.0 (242.2) Cash flow after investments MEUR 54.2 (−52.0) Net debt MEUR 239.4 (262.8) Net debt to EBITDA 1.1x (1.4x)
Customer centres 358 (406)
Highlights: FY2012 and Q4
Financial Statements 2012 5
Net Sales (MEUR) and EBIT (%)
389
498
634 703
503 531
650 714
0%
5%
10%
15%
20%
25%
30%
0
100
200
300
400
500
600
700
800
2005 2006 2007 2008 2009 2010 2011 2012
Net sales EBIT,%
Profitability is improving steadily
Highlights: FY2012 and Q4
Financial Statements 2012
6
4%
-2%
7%
22%
-16%
5%
-14% -20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
YoY Change in net sales,% Q4/12
Full–year net sales grew in all segments except Europe Central
10% 8%
15%
20%
1%
13%
-15% -20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
YoY Change in net sales,% 1–12/12
Highlights: FY2012 and Q4
Financial Statements 2012
7
14% 18% 16%
13%
7%
29%
1% 0%
5%
10%
15%
20%
25%
30%
35%
Q4 2011 Q4 2012
EBIT margin Q4/12 vs. Q4/11
EBIT margin improved in Q4 in all segments expect Sweden and Central Europe
EBIT margin 1–12/12 vs. 1–12/11
13%
18% 16%
13%
4%
17%
-3% -5%
0%
5%
10%
15%
20%
1–12 2011 1–12 2012 1–12 2011 1–12 2012 Q4 2012 Q4 2011
Highlights: FY2012 and Q4
Financial Statements 2012
8
15.9 16.8
0
10
20
30
40
50
Cash flow after investments
Cash flow Q4/12 vs. Q4/11
Cash flow improved clearly in 2012
Cash flow 1–12/12 vs. 1–12/11
–52.0
54.2
-60
-40
-20
0
20
40
60
Cash flow after investments
Q4/12 Q4/11 1–12/12 1–12/11
Highlights: FY2012 and Q4
Financial Statements 2012
Long-term financial targets were met in 2012
9
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 1–12/2012
18.3%
1.1x
57.6%* of 2012 net profit
Highlights: FY2012 and Q4
*Board’s proposal
Financial Statements 2012
10
Earnings Per Share and Dividend Per Share
Dividend proposal EUR 0.34 per share
The Board proposes a dividend of EUR 0.34 (0.28) per share for the year 2012 Payout ratio 57.6%* (67.6%)
0.33
0.73
1.02
0.31
0.04 0.13
0.41
0.59
0.15
.0.30
.0.50
0.00
0.15 0.25 0.28
0.34*
0,00
0,20
0,40
0,60
0,80
1,00
1,20
2005 2006 2007 2008 2009 2010 2011 2012
EPS DPS
*Board’s proposal
Highlights: FY2012 and Q4
MARKET OUTLOOK
11
Financial Statements 2012
Market outlook –Construction output forecasts
12
Country 2013F 2014F Source
Nordic Finland −2.3% 0.8% Euroconstruct
Sweden 0.2% 2.6% Euroconstruct
Norway 5.6% 2.5% Euroconstruct
Denmark 2.2% 4.4% Euroconstruct
Europe Central Poland −3.4% −1.0% Euroconstruct
Czech Republic −1.9% 0.8% Euroconstruct
Slovakia −1.0% 2.2% Euroconstruct
Hungary 0.9% 3.4% Euroconstruct
Europe East
Russia 0–5%
0–5% Euroconstruct
Estonia 2.0% −3.0% Euroconstruct
Latvia 4.0% −2.0% Euroconstruct
Lithuania 3.0% −1.0% Euroconstruct
Ukraine N/A. N/A. N/A.
Source: Euroconstruct, December 2012
Market outlook
Financial Statements 2012
Residential construction expected to increase in Norway
13
Source: Euroconstruct December 2012
Residential construction (output) 2008A – 2014F
Index 2008 = 100 (volume)
109
94
120
91 88
70
75
80
85
90
95
100
105
110
115
120
2008 2009 2010 2011 2012E 2013F 2014F
Finland Sweden Norway Denmark Europe Central
Forecasts for Europe East countries not available
Market outlook
Financial Statements 2012
Non–residential construction forecasted to remain stable
14
Non–residential construction (output) 2008A – 2014F
Index 2008 = 100 (volume)
80
94
104
71
96
60
70
80
90
100
110
120
2008 2009 2010 2011 2012E 2013F 2014F
Finland Sweden Norway Denmark Europe Central
Source: Euroconstruct December 2012 Forecasts for Europe East countries not available
Market outlook
Financial Statements 2012
Nordic construction order books continued to decrease in Q4/2012
15
*Order books for Swe, Fin, Nor, Den excluding Veidekke, Peab and SRV that had not reported by February 12, 2013
-40%
-20%
0%
20%
40%
60%
0
2
4
6
8
10
12
14
Q12007
Q2 Q3 Q4 Q12008
Q2 Q3 Q4 Q12009
Q2 Q3 Q4 Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q42
Order books: Nordic construction companies (BEUR, real exchange rates)*
Skanska NCC
YIT Lemminkäinen
Change in Net sales YoY, R12 Ramirent Change in order backlog YoY, Nordic construction
8.2% decrease in Q4/2012 compared to Q4/2011
Market outlook
Financial Statements 2012
Ramirent outlook for 2013
16
In 2013, EBITA is expected to remain at the level of 2012
Market outlook
Financial Statements 2012 17
Strategic priorities 2013
Customer first
Sustainable profitable growth
Common Ramirent platform
Balanced business portfolio
• Strong customer-centric approach with increased focus on sustainability, safety and quality
• Being the leading and most profitable general rental company where present
• Developing a one-company
structure with operational consistency
• Maintain a balanced portfolio
of customers, products and markets to balance risk
SEGMENT REVIEW
18
Financial Statements 2012
29 34
41
31 28
36 38 35 30
37
45 42 38 41
45 42
-5%
0%
5%
10%
15%
20%
25%
30%
0
10
20
30
40
50
Q12009
Q2 Q3 Q4 Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4
Net sales EBIT-%
Finland
Good demand from industrial sector In construction sector, demand for equipment rental remained stable Good demand in Southern and Northern Finland EBIT improved thanks to good price discipline and enhanced utilisation rates
19
Highlights Q4/2012 Sales and EBIT by quarter
Finland Q4 2012
Q4 2011
Change (EUR)
Change (Local)
1–12/ 2012
1–12/ 2011
Change (EUR)
Change (Local)
Net sales, MEUR 41.7 42.5 −2% −2% 166.5 154.7 8% 8%
EBIT, MEUR 7.3 6.2 19% 30.2 22.8 33%
EBIT–margin 17.6% 14.6% 18.2% 14.7%
Employees 572 596 −4% Outlets 76 83 −8%
Segment review
Financial Statements 2012
Sweden
20
Good demand in the capital city area and Western Sweden in construction Good activity in industrial projects in Northern Sweden EBIT was burdened by an increase in external work related to module projects Erik Alteryd was appointed as head of Sweden segment (to start latest in July 2013)
32 33 31 32 29 35 36
45 41 42 45
54 48 51 53
58
0%
5%
10%
15%
20%
25%
0
10
20
30
40
50
60
70
Q12009
Q2 Q3 Q4 Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4
Net sales EBIT-%
Sales and EBIT by quarter
Sweden Q4 2012
Q4 2011
Change (EUR)
Change (Local)
1–12/ 2012
1–12/ 2011
Change (EUR)
Change (Local)
Net sales, MEUR 57.9 53.9 7% 2% 209.9 182.7 15% 11%
EBIT, MEUR 9.2 11.9 –23% 33.1 33.2 -
EBIT–margin 15.9% 22.2% 15.7% 18.2%
Employees 677 630 7% Customer centres
79 79 -
Segment review
Highlights Q4/2012
Financial Statements 2012
Norway
21
Ramirent continued to experience good demand from construction as well as other industrial sectors EBIT strengthened clearly thanks to growth in net sales, higher utilisation rates as well as good cost control Price level remained stable
29 25 27 29 28 27 28
31 33 30
40 42 44 38 41
51
-5%
0%
5%
10%
15%
20%
0
10
20
30
40
50
60
Q12009
Q2 Q3 Q4 Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4
Net sales EBIT-%
Norway Q4 2012
Q4 2011
Change (EUR)
Change (Local)
1–12/ 2012
1–12/ 2011
Change (EUR)
Change (Local)
Net sales, MEUR 51.0 42.0 22% 16% 174.0 144.8 20% 15%
EBIT, MEUR 6.5 4.5 44% 22.2 11.2 98%
EBIT–margin 12.7% 10.7% 12.8% 7.7%
Employees 467 486 −4% Outlets 42 42 -
Sales and EBIT by quarter
Segment review
Highlights Q4/2012
Financial Statements 2012
Denmark
22
Demand of the equipment rental weakened due to slowing activity in construction market Early winter affected on utilisation rates Price level stable Full-year EBIT improved thanks to good cost control and remained stable in Q4
11 12
11 10
8 9 9 10
8 10
11
15
10 11 11 12
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
02468
10121416
Q12009
Q2 Q3 Q4 Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4
Net sales EBIT-%
Denmark Q4 2012
Q4 2011
Change (EUR)
Change (Local)
1–12/ 2012
1–12/ 2011
Change (EUR)
Change (Local)
Net sales, MEUR 12.2 14.6 −16% −16% 44.7 44.1 1% 1%
EBIT, MEUR 0.8 0.8 4% 1.6 0.1 N/A
EBIT–margin 6.7% 5.4% 3.6% 0.2%
Employees 192 186 3% Outlets 19 22 −14%
Sales and EBIT by quarter
Segment review
Highlights Q4/2012
Financial Statements 2012
Europe East
23
In Russia and Ukraine, infrastructure construction was the main growth driver In the Baltic countries, especially in Estonia, growth was driven by large energy sector projects EBIT improved based on good growth in net sales and improved price levels Decision on formation of joint venture with Cramo in Russia and Ukraine
9 12
19
11
8 10
12 13
9
13
17 16
12
15
19 17
-40%-30%-20%-10%0%10%20%30%40%
0
5
10
15
20
Q12009
Q2 Q3 Q4 Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4
Net sales EBIT-%
Europe East Q4 2012
Q4 2011
Change (EUR)
Change (Local)
1–12/ 2012
1–12/ 2011
Change (EUR)
Change (Local)
Net sales, MEUR 17.4 16.5 5% 3% 63.3 56.1 13% 11%
EBIT, MEUR 5.0 2.3 113% 10.9 5.9 86%
EBIT–margin 28.7% 14.2% 17.3% 10.5%
Employees 443 439 1% Outlets 62 58 7%
Sales and EBIT by quarter
Segment review
Highlights Q4/2012
Financial Statements 2012
Europe Central
24
Demand weakened for rental equipment in all Europe Central countries Fleet allocation and downsizing of operations continued EBIT was burdened by low volumes, high price pressure and lower utilisation rates
14 16
18 16
12
16
20 19
14
19 22
19
13 15
18 16
-25%-20%-15%-10%-5%0%5%10%15%20%
0
5
10
15
20
25
Q12009
Q2 Q3 Q4 Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4
Net sales EBIT-%
Europe Central Q4 2012
Q4 2011
Change (EUR)
Change (Local)
1–12/ 2012
1–12/ 2011
Change (EUR)
Change (Local)
Net sales, MEUR 16.2 18.9 −14% −19% 62.7 73.9 −15% −14%
EBIT, MEUR 0.2 2.0 −91% −1.6 5.5 −128%
EBIT–margin 1.1% 10.8% −2.5% 7.4%
Employees 626 825 −24% Outlets 80 122 −34%
Sales and EBIT by quarter
Segment review
Highlights Q4/2012
FINANCIAL REVIEW
25
Financial Statements 2012
Good profitability and strong cash flow in 2012
26
Net Sales (MEUR) EBITDA (MEUR)
Cash flow (MEUR) Net debt (MEUR) Gross Capex (MEUR)
EBIT (MEUR)
3 5 3 8 13 22
10 18
32 45
120
46 36
24 28 37
0%10%20%30%40%50%60%70%80%
0
20
40
60
80
100
120
140
Q12009
Q2Q3Q4Q12010
Q2Q3Q4Q12011
Q2Q3Q4Q12012
Q2Q3Q4
Gross Capex Share of net sales-%281
255 230
207 212 209 197 177 191
238
280 263 258
281 256
239
0%
20%
40%
60%
80%
100%
120%
0
50
100
150
200
250
300
Q12009
Q2Q3Q4Q12010
Q2Q3Q4Q12011
Q2Q3Q4Q12012
Q2Q3Q4
Net debt Gearing-%
7
14 12
-4 -6
7
17 11
3
15
31 25
12
23
30 28
-10%
-5%
0%
5%
10%
15%
20%
-10-505
101520253035
Q12009
Q2Q3Q4Q12010
Q2Q3Q4Q12011
Q2Q3Q4Q12012
Q2Q3Q4
EBIT EBIT-%
30 36 37
26 18
31
42 37
28
41
59 55
42
52 60 57
0%
5%
10%
15%
20%
25%
30%
35%
0
10
20
30
40
50
60
70
Q12009
Q2Q3Q4Q12010
Q2Q3Q4Q12011
Q2Q3Q4Q12012
Q2Q3Q4
EBITDA EBITDA-%
122 125 130 126 112
129 141 150 134
150 179 187
164 170 186 194
-40%-30%-20%-10%0%10%20%30%40%
0
50
100
150
200
250
Q12009
Q2Q3Q4Q12010
Q2Q3Q4Q12011
Q2Q3Q4Q12012
Q2Q3Q4
Net sales Y-o-y change-%
18 28
22 20
-4
13 14 24
-11 -20
-37
16 6 7
24 17
-50-40-30-20-10
010203040
Q12009
Q2Q3Q4Q12010
Q2Q3Q4Q12011
Q2Q3Q4Q12012
Q2Q3Q4
Cash flow after investments
Financial review
Financial Statements 2012
Net sales grew 3.9% in Q4/2012, full–year net sales growth was 9.9%
Net sales grew 9.9% in 1-12/2012 (7.7% at comparable exchange
27
Change in net sales YoY, %
19% 19% 13%
−4%
−25% −31% −31%
−27%
−9%
3% 9%
19% 20% 16%
27% 24% 22%
14%
4% 4%
Q12008
Q2 Q3 Q4 Q12009
Q2 Q3 Q4 Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 2 Q4
Financial review
At comparable exchange rates, net sales grew 0.5% in Q4/2012 and 7.7% for the full-year 2012
Financial Statements 2012
Share of ancillary income increased clearly
Q4/2012 compared to Q4/2011: • Rental income increased 0.8% • Ancillary income increased 19.8% • Income from sold equipment declined 35.3%
28
65% 63%
29% 33%
6% 4%
0 %
20 %
40 %
60 %
80 %
100 %
Q4/2011 Q4/2012
Income from sold equipment
Ancillary income
Rental income
Breakdown of net sales (%) and MEUR
121.8 122.8
53.2 63.7 11.8 7.6
0
50
100
150
200
250
Q4/2011 Q4/2012
Income from sold equipment
Ancillary income
Rental income
Financial review
Financial Statements 2012
Gross margin affected by sales mix
29
Gross margin (%) by quarter
71%
70%
68%
65%
69%
65%
67%
68%
66%
67% 67% 68%
69%
66%
68%
66%
68% 69%
64%
67%
Q1 Q2 Q3 Q4 FY
2009 2010 2011 2012
Financial review
Financial Statements 2012
Number of employees decreased in Europe Central due to reorganisation
At the end of December 2012, the Group’s number of employees was 3,005 (3,184)
30
Number of employees by segment
596 630
486
186
439
825
572
677
467
192
443
626
Finland Sweden Norway Denmark Europe East EuropeCentral
Personnel 31/12/11 Personnel 31/12/12
Financial review
Financial Statements 2012
Optimisation of customer centres continues, 358 customer centres at the end of 2012
96 76
57 79
37 42 18 19 52
62
99 80
359 358
Q12008
Q2 Q3 Q4 Q12009
Q2 Q3 Q4 Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4
Finland Sweden Norway Denmark Europe East Europe Central
Number of customer centres per segment
31 Financial review
Financial Statements 2012
Stable fixed cost development
Group fixed costs 270 (260) MEUR in 1-12/2012
32
Fixed costs by quarter (MEUR)
35 30 33 33 33 33 32 38 37 37 41 42 42 40 42 42
23 22 19 23 22 23 22
24 27 25 25 28 25 25 26 27
57 52 52
57 56 56 54
62 63 62 66
70 68 65 68 69
Q12009
Q2 Q3 Q4 Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q42
Employee benefit expenses Other operating expenses
Financial review
Financial Statements 2012
EBIT–margin January–December 2012: 12.9% (11.4%)
EBIT-margin improved in the fourth quarter compared to the previous year
33
EBIT-margin (%) by quarter
18.2% 19.6%
18.4%
−11.4%
5.9%
10.8% 9.0%
−2.9% −5.0%
5.8%
11.8%
7.5%
2.0%
10.3%
17.0%
13.6%
7.5%
13.4% 16.0%
14.2%
Q12008
Q2 Q3 Q4 Q12009
Q2 Q3 Q4 Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q32 Q43
Financial review
Financial Statements 2012
Profitability improved in Q4 in all segments expect Sweden and Central Europe
34
13.6% 14.6%
22.2%
10.7%
5.4%
14.2%
10.8%
14.2%
17.6% 15.9%
12.7%
6.7%
28.7%
1.1%
Group Finland Sweden Norway Denmark East Central
Q4/11 Q4/12
EBIT–margin (%) by segments
Q4/11 Q4/12
Financial review
Financial Statements 2012
30
38
67
34
20 22 25
34
4 5 6 12
8 6 6 8
Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4
Purchased equipment Sold equipment
Ramirent purchased less equipment in 2012 compared to previous year
The total value of purchased equipment was 101.3 (169.2) million in 1-12/2012 The value of sold rental equipment was EUR 28.0 (27.0) million in 1-12/2012 Non-cancellable operational leases for rental equipment amounted to EUR 3.7 (12.3) million at end of 2012
35
Purchased and sold equipment by quarter (MEUR)
Financial review
Financial Statements 2012
Capital expenditure lower level than in the previous year
Lower level of acquitions as well as investments into machinery
36
242
34
81 95
9 12 14
124
26 46 34
2 10 8
1–12/2011 1–12/2012
Capital Expenditure by segments (MEUR)
1–12/2011 1–12/2012
Financial review
Financial Statements 2012
Working capital at 5% of net sales
Q4/2012 credit losses and net change in the allowance for bad debt totalled EUR −1.3 (−1.3) million
37
16 15 15 15 15 14 14 16 16 17 17 17 18 18 20 15
86
88
90
80
83
90
99
97
95
10
9
12
4
12
0
11
4
13
1
14
1
13
6
-66
-68
-70
-67
-69
-86
-86
-89
-82
-84
-10
7
-10
9
-13
9
-11
2
-12
2
-11
3
-6%
-4%
-2%
0%
2%
4%
6%
8%
-120
-80
-40
0
40
80
120
160
Q12009
Q2 Q3 Q4 Q12010
Q2 Q33Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q32 Q42
Trade payables and other liabilitiesTrade and other receivablesInventoriesWorking capital/Net sales Rolling 12 month basis
Working capital by quarter (MEUR)
Financial review
Financial Statements 2012
Return on equity improved during 2012
38
316 296 305
326 308 322
350 368
0%
5%
10%
15%
20%
25%
30%
0
50
100
150
200
250
300
350
400
Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4
Total equity ROE (R12)
Total equity (MEUR) and ROE (%) rolling 12
Return on equity, ROE 18.3% 1-12/2012
Financial review
Financial Statements 2012
Invested capital and Return on investment remained stable in 2012
39
Invested capital (MEUR) and ROI (%) by quarter
508 536
588 591 568 605 608 608
0%
5%
10%
15%
20%
25%
30%
0
100
200
300
400
500
600
700
Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4
Invested capital ROI (R12)
Return on invested capital, ROI 18.8% 1-12/2012
Financial review
Financial Statements 2012
Cash flow after investments increased to 54.2 MEUR in 1-12/2012
40
Cash flow after investments (MEUR)
−54.8
−29.9
25.2
66.5
17.9 27.8 22.4 19.5
−4.0
13.4 14.4 24.2
−10.7 −20.4
−36.8
15.9 6.4 7.3
23.7 16.8
Q12008
Q2 Q3 Q4 Q12009
Q2 Q3 Q4 Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4
Cash flow after investments Rolling 12 months
Financial review
Financial Statements 2012
0,0
0,5
1,0
1,5
2,0
2,5
0
50
100
150
200
250
300
Q12009
Q2 Q3 Q4 Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4
Net debt Net debt to EBITDA ratio
Net debt decreased during the second half of the 2012
Net debt to EBITDA 1.1x (1.4x) at the end of 2012
41
Net debt (MEUR) and Net debt to EBITDA ratio
Financial review
Financial Statements 2012
At end of Q4/12, Ramirent had unused committed back–up facilities of 150.9 MEUR
In addition to bank facilities, Ramirent is utilising a domestic commercial paper program of up to EUR 150 million
42
150
240
2012 2013 2014 2015 2016 2017
Repayment schedule of interest–bearing liabilities (MEUR)
390 MEUR in committed credit facilities
239.4 MEUR in net debt
Financial review
RAMIRENT AND CRAMO JOINT VENTURE
43
Financial Statements 2012
Group
New strategy for our presence in Russia and Ukraine through joint venture with Cramo
Group
Combining Forces in Growing Markets… …Creates a Strong Stand–Alone Company
“50/50 JV”
50% 50%
44 Ramirent and Cramo JV
A stand-alone entity with new corporate identity 50/50 ownership for Cramo and Ramirent 2012E net sales and EBITDA margin of €52 million and ~35%, respectively 400 employees Depot locations: St. Petersburg region 7, Moscow region 6, other regions Russia 3, Ukraine 6 (+ 6 shop-in-shop outlets)
Key Facts
RUSSIA
UKRAINE
Rationale is to create strong player with increased financial resources and excellent organisational capabilities to capture the growth opportunities in target markets.
For more information: www.ramirent.com Magnus Rosén, CEO +358 20 750 2845 [email protected] Jonas Söderkvist, CFO +358 20 750 3248 [email protected] Franciska Janzon, IR +358 20 750 2859 [email protected]
COMPANY OVERVIEW
46
Financial Statements 2012
Ramirent in brief
47
Leading equipment rental company in Northern, Central and Eastern Europe with net sales of EUR 714 million (2012)
358 rental customer centers located in 13 countries and providing 200 000 rental items
Listed on NASDAQ OMX Helsinki since 1998
3,005 employees serving 100,000 customers
Founded in 1955 and headquartered in Finland
Company overview
Financial Statements 2012
Ramirent operates in Europe with Baltic Sea region being the core market
48
Sales per segment 1-12/2012 Wide network of customer centres and leading market position
Finland 23%
Sweden 29%
Norway 24%
Denmark 6%
Europe Eas t 9%
Europe C entral
9%
Sales per customer 1-12/2012
C onstruc- tion 68%
Services &Retail 10%
Indus trial 15%
P rivate 3%
Public 4%
Company overview
Target is to increase sales to non-construction customers to 40% of the Group's net sales
Finland 76 cus tomer
centres # 1
Europe
East 62 cus tomer
centres # 1
Norway
42 cus tomer centres
# 1
Denmark 19 cus tomer
centres # 1
Europe Central
80 cus tomer centres
# 1
Sweden
79 cus tomer centres
# 2
Financial Statements 2012
End of 2009
We accelerate our growth through acquisitions and outsourcing cases
49
Outsourcing deal in Denmark
Outsourcing deal in Finland Acquisition of
Finnish weather protection rental
company
Outsourcing deal with two subsidiaries in Finland
Outsourcing deal in Finland
Some 50 companies on our watch list
Acquisition of Swedish rental company
Outsourcing deal in Norway
Acquisition of Czech rental
business
Aquisition of Czech rental
business
Acquisition of Czech rental
business
Acquisition of Swedish rental
company
Acquisition of Danish rental
business
Acquisition of specialist module rental company in
Norway
Danish scaffolding
division
Acquisition of Swedish rental
company
Acquisition of Swedish rental
company
2010
2011 2012
Outsourcing deal in Norway
JV with Cramo in Russia
and Ukraine announced
Company overview
Mission We simplify business by Delivering Dynamic Rental Solutions™
Vision To be the leading and most progressive equipment rental solutions company in Europe, setting the benchmark for industry performance and customer service
50
Our strategic choices
Values Open, Progressive, Engaged
Brand promise Let’s solve it
Company overview
Financial Statements 2012
RA
MIR
EN
T O
FF
ER
ING
CUSTOMER NEEDS
PRODUCTS
• Lifts • Heavy machinery • Tower cranes and hoists • Scaffolding
• Modules • Safety and formworks • Light machinery • Power and heating
SERVICES
• Planning & design • Ramirent know-how • Transportation • Installation • Maintenance • Inspections • Insurance • Operators
• Fuel/gas ref illing • Site logistics coordinator • Facility management • Paperwork for authorities • Technical support
SOLUTIONS
• Total Management • Eco solutions • Safety • Event
• Power • Access • Climate • Space
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: Easy to buy, reduced number of subcontractors, increased focus on the core business
OUTSOURCING Benefits: By outsourcing your machine fleet to Ramirent, companies can increase efficiency and simplify their business by focusing on core competences
INDUSTRIES • Construction • Mining • Paper • Power generation • Oil & gas • Shipyards • Facility management • Public sector • Households
How we simplify our customer's business
51
Company overview
Financial Statements 2012
Our offering
52 Company overview
Financial Statements 2012
Our strategic and operational themes through the business cycles
Weak Stable Strong
Strategic themes
• Safe-guard profitability and cash flow
• Consolidate market – Outsourcing cases
• Realise synergies through operational excellence
• Consolidate market – Bolt-on acquisitions
• Profitable growth
Operational themes
• Pricing discipline • Execute contingency plans • Reduce costs and transform
fixed costs to variable • Reduce financial risk, focus
on A/R and credits • Amortise debt • Limited capex, transfer fleet
to where demand is
• Develop product, customer and market portfolio
• Expand value offering • Maintenance capex
• Drive penetration and capture growth opportunities
• Keep control of fixed cost base
• Prepare contingency plans
• Growth capex for expansion
Weak market conditions in 2009-2010
Increased demand and investments
2011-2012
Business cycle
Counter cyclical cash flow
Market conditions
53 Company overview
Financial Statements 2012 54
Organic growth drivers 7
0%
6
0%
4
5%
4
0%
4
0%
30
%
30
%
25
%
20
%
20
%
15
%
15
%
15
%
10
%
10
%
10
%
5%
0%
20%
40%
60%
80%
100%
Increasing rental penetration
Expansion to Eastern and Cental Europe
Inhabitants (million)
Construction output (BEUR)
RamirentLoxamCramoAlgeco ScotsmanSpeedy HireLiebherr-MietpartnerGAMMediaco LiftingSarensKiloutouHKL BaumschinenOthers
Consolidation opportunities in Europe
External growth drivers Increasing rental penetration
Outsourcing deals
Bolt-on and selected strategic acquisitions
Joint Ventures
Good organic and strategic growth opportunities
Company overview
Financial Statements 2012 55
Summary of company’s strengths
Leading equipment rental company in Northern, Central and Eastern Europe More than 50 years industry experience Diversified portfolios of customers, products and markets Stable profitability and steady cash flow Flexibility to maneuver: capex and cost flexibility, strong balance sheet Strong financial position and funding
Senat's square, Helsinki, Finland
Company overview
Financial Statements 2012
Largest shareholders
Largest shareholders on December 31, 2012
Number of shares
% of share
capital
1. Nordstjernan AB 31,882,078 29.33%
2. Oy Julius Tallberg Ab 11,962,229 11.01%
3. Varma Mutual Pension Insurance Company 7,368,799 6.78%
4. Odin funds 4,638,955 4.27%
5. Ilmarinen Mutual Pension Insurance Company 3,295,154 3.03%
6. Nordea funds 2,664,173 2.45% 7. LocalTapiola Mutual Pension Insurance Company 2,407,668 2.22%
8. Aktia funds 2,072,640 1.91%
9. Veritas Pension Insurance Company Ltd 1,508,768 1.39%
10. Föreningen Konstsamfundet Rf 825,000 0.76%
Ramirent Oyj treasury shares 1,030,192 0.95%
Nominee registered 17,200,818 15.82%
Other shareholders 21,840,854 20.09%
Total 108,697,328 100.00%
56
Market Cap EUR 673 million
Trading information Listing: NASDAX OMX Helsinki Date of listing: April 30, 1998
Segment: Mid Cap Sector: Industrials
Trading code: RMR1V
16%
24%
14% 9% 2%
35%
Private companies
Financial and insurance institutions
Public sector organizations
Households
Non-profit organizations
Foreigners
Shareholders December 31, 2012
Company overview
Financial Statements 2012
Share price development
57 Company overview
EUR
0
2
4
6
8
10
12
14
EUR 7.43*
Ramirent Plc (RMR1V)
*February 8, 2013
Financial Statements 2012
APPENDIX
58
Financial Statements 2012
Consolidated income statement
59
CONSOLIDATED INCOME STATEMENT 10–12/12 10–12/11 1–12/12 1–12/11
(EUR 1,000)
Rental income 122,777 121,795 463,070 430,848
Ancillary income 63,738 53,196 223,899 192,355
Sales of equipment 7,625 11,780 27,115 26,658
NET SALES 194,141 186,772 714,083 649,861
Other operating income 1,192 541 3,026 1,526
Materials and services −70,086 −62,820 −237,184 −209,357
Employee benefit expenses −41,809 −41,844 −166,550 −156,101
Other operating expenses −27,096 −27,736 −103,249 −104,214
Share of result in associates and joint ventures 116 74 116 74
Depreciation and amortisation −28,976 −29,494 −117,943 −107,659
EBIT 27,481 25,492 92,298 74,131
Financial income 1,965 2,430 20,320 11,405
Financial expenses −5,132 −5,174 −29,733 −24,776
EBT 24,314 22,749 82,885 60,760
Income taxes −4,525 −5,691 −19,257 −16,030
NET RESULT FOR THE PERIOD 19,788 17,058 63,628 44,730
Net result for the period attributable to:
Owners of the parent company 19,788 17,058 63,628 44,730
Non-controlling interest - - - -
TOTAL 19,788 17,058 63,628 44,730
Earnings per share (EPS)
EPS on parent company shareholders' share of profit, basic, EUR 0.18 0.16 0.59 0.41
EPS on parent company shareholders' share of profit, diluted,
EUR 0.18 0.16 0.59 0.41
Appendix
Financial Statements 2012
Balance sheet – Assets
60
CONSOLIDATED BALANCE SHEET 31/12/2012 31/12/2011 (EUR 1,000) NON-CURRENT ASSETS Property, plant and equipment 451,511 487,310 Goodwill 133,515 124,452 Other intangible assets 40,381 35,719 Investments in associates and Joint Ventures 1,125 953 Available-for-sale investments 412 415 Deferred tax assets 9,189 12,183 NON-CURRENT ASSETS, TOTAL 636,133 661,032 CURRENT ASSETS Inventories 15,250 17,309 Trade and other receivables 135,600 120,000 Current income tax assets 145 344 Cash and cash equivalents 1,338 2,431 CURRENT ASSETS, TOTAL 152,333 140,084 Assets to be transferred to the Joint Venture 42,250 - TOTAL ASSETS 830,716 801,117
Appendix
Financial Statements 2012
Balance sheet – Equity and liabilities
61
CONSOLIDATED BALANCE SHEET 31/12/2012 31/12/2011 (EUR 1,000) EQUITY Share capital 25,000 25,000 Revaluation fund −4,924 −4,192 Invested unrestricted equity fund 113,329 113,329 Retained earnings 234,267 191,862 PARENT COMPANY SHAREHOLDERS’ EQUITY 367,672 326,000 Non-controlling interests - - EQUITY, TOTAL 367,672 326,000 NON-CURRENT LIABILITIES Deferred tax liabilities 73,333 73,690 Pension obligations 8,693 7,226 Provisions 972 1,553 Interest-bearing liabilities 191,199 219,773 Other long-term liabilities 8,071 11,748 NON-CURRENT LIABILITIES, TOTAL 282,268 313,990 CURRENT LIABILITIES Trade payables and other liabilities 112,956 109,020 Provisions 826 1,163 Current income tax liabilities 10,936 5,496 Interest-bearing liabilities 49,513 45,448 CURRENT LIABILITIES, TOTAL 174,231 161,127 Liabilities to be transferred to the Joint Venture 6,545 - LIABILITIES, TOTAL 463,044 475,117 TOTAL EQUITY AND LIABILITIES 830,716 801,117
Appendix
Financial Statements 2012
Key figures
62
KEY FINANCIAL FIGURES 2012 2011 (MEUR) Net sales 714.1 649.9 Increase in net sales, % 9.9% 22.3% Operating result before depreciation and amortisation (EBITDA) 210.2 181.8 Operating result before depreciation and amortisation (EBITDA), % of net sales 29.4% 28.0% Operating result before amortisation of intangible assets (EBITA) 100.3 79.4 Operating result before amortisation of intangible assets (EBITA), % net sales 14.1% 12.2% Operating result (EBIT), 92.3 74.1 Operating result (EBIT), % of net sales 12.9% 11.4% Result before taxes (EBT) 82.9 60.8 Result before taxes (EBT), % of net sales 11.6% 9.3% Net result for the financial year 63.6 44.7 Net result for the financial year, % of net sales 8.9% 6.9% Return on invested capital (ROI), % 18.8% 15.7% Return on equity (ROE), % 18.3% 13.9% Interest-bearing debt 240.7 265.2 Net debt 239.4 262.8 Net debt to EBITDA ratio 1.1x 1.4x Gearing, % 65.1% 80.6% Equity ratio, % 44.3% 40.7% Personnel, average during financial year 3,077 3,150 Personnel, at end of financial year 3,005 3,184 Gross capital expenditure 124.0 242.2 Gross capital expenditure, % of net sales 17.4% 37.3%
Appendix
Financial Statements 2012
Condensed cash flow statement
63
CONSOLIDATED CONDENSED CASH FLOW STATEMENT 10–12/12 10–12/11 1–12/12 1–12/11
(EUR 1,000)
Cash flow from operating activities 54,029 44,075 173,985 177,433
Cash flow from investing activities −37,210 −28,204 −119,818 −229,475
Cash flow from financing activities
Borrowings / repayment of short-term debt −26,000 −7,544 5,500 30,584
Borrowings / repayment of long-term debt 8,323 −9,080 −27,900 52,919
Purchase of treasury shares - - −2,714 −3,378
Dividends paid - - −30,147 −27,004
Cash flow from financing activities −17,677 −16,624 −55,261 53,121
Net change in cash and cash equivalents −858 −752 −1,094 1,079
Cash and cash equivalents at the beginning of the period 2,195 3,184 2,431 1,352
Translation difference on cash and cash equivalents - - - -
Net change in cash and cash equivalents −858 −752 −1,094 1,079
Cash and cash equivalents at the end of the period 1,338 2,431 1,338 2,431
Appendix
Financial Statements 2012
Segment information: Net sales
64
NET SALES 10–12/12 10–12/11 1–12/12 1–12/11 (MEUR) FINLAND - Net sales (external) 41.4 42.1 165.0 151.4 - Inter-segment sales 0.3 0.4 1.5 3.3 SWEDEN - Net sales (external) 56.7 53.6 207.5 182.0 - Inter-segment sales 1.2 0.2 2.4 0.6 NORWAY - Net sales (external) 50.7 41.9 173.6 144.3 - Inter-segment sales 0.4 0.1 0.5 0.5 DENMARK - Net sales (external) 12.2 14.4 44.6 43.5 - Inter-segment sales 0.1 0.2 0.1 0.6 EUROPE EAST - Net sales (external) 17.3 16.4 63.0 55.8 - Inter-segment sales - 0.1 0.3 0.2 EUROPE CENTRAL - Net sales (external) 15.9 18.4 60.4 72.8 - Inter-segment sales 0.3 0.6 2.3 1.0 Elimination of sales between segments −2.3 −1.6 −7.1 −6.3 NET SALES, TOTAL 194.1 186.8 714.1 649.9 Other operating income 1.2 0.5 3.0 1.5
Appendix
Financial Statements 2012
Segment information: EBIT
65
EBIT 10–12/12 10–12/11 1–12/12 1–12/11
(MEUR)
FINLAND 7.3 6.2 30.2 22.8
% of net sales 17.6% 14.6% 18.2% 14.7%
SWEDEN 9.2 11.9 33.1 33.2
% of net sales 15.9% 22.2% 15.7% 18.2%
NORWAY 6.5 4.5 22.2 11.2
% of net sales 12.7% 10.7% 12.8% 7.7%
DENMARK 0.8 0.8 1.6 0.1
% of net sales 6.7% 5.4% 3.6% 0.2%
EUROPE EAST 5.0 2.3 10.9 5.9
% of net sales 28.7% 14.2% 17.3% 10.5%
EUROPE CENTRAL 0.2 2.0 −1.6 5.5
% of net sales 1.1% 10.8% −2.5% 7.4%
Net items not allocated to operating segments −1.5 −2.3 −4.2 −4.5
GROUP EBIT 27.5 25.5 92.3 74.1
% of net sales 14.2% 13.6% 12.9% 11.4%
Appendix
For more information: www.ramirent.com