Credit project update - Ramirentinvestors.ramirent.com/sites/default/files/misc/ramirent_20091111_q3_2009... · 11.11.2009 · Ramirent in brief The leading equipment rental company

Result Q3/2009Investor presentation

November 11, 2009Magnus Rosén, President and CEO

Ramirent in brief

The leading equipment rental company in

Northern, Central and Eastern Europe

The second largest rental company in Europe

3 177 employees

344 rental outlets in 13 countries

Over 100,000 rental customers

Young fleet of over 200 000 items

Listed on NASDAQ OMX Helsinki 1998

Founded 1955

2 Q3 2009 Results © 2009 Ramirent

Our symbol

the “Rami man”

General Rental Company

Tower Cranes Formworks Power and Heating Light Equipment

Lifts and Hoists Heavy Equipment Modules Scaffolding


Outlet

Local head office

Extensive geographicfootprint

Segments Employees Outlets Market Position

Finland 612 79 #1

Sweden 530 58 #2

Norway 552 40 #1

Denmark 184 21 #1

Europe East 399 45 #1

Europe Central 885 101 #1

Group 3,177 344


January-September in brief

Net sales decreased -29.0% to MEUR 376.3 (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 230.0 (362.4)

Gearing decreased to 74% (106%) from 108% at year-end 2008


3339

4339

2934

41

05

101520253035404550

Q1 2008 Q2 Q3 Q4 Q1 2009 Q2 Q30 %

5 %

10 %

15 %

20 %

25 %

30 %

Net sales EBIT-%

Finland

• 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.

MEUR

-19% excl. MEUR 6.4 in sales originating from fleet relocation

Q3 Jan-Sept

Finland 2009 2008 Change 2009 2008 Change

Net sales, MEUR 41.2 42.9 -4% 103.8 115.6 -10%

EBIT, MEUR 6.3 11.3 -44% 12.1 27.6 -56%

EBIT-margin 15.3% 26.3% - 11.6% 23.9% -Employees - - - 612 731 -16%

Outlets - - - 79 95 -17%


Q3 Jan-Sept

Sweden 2009 2008 Change 2009 2008 Change

Net sales, MEUR 30.8 42.1 -27% 95.4 129.2 -26%EBIT, MEUR 4.4 8.9 -51% 16.6 28.2 -41%EBIT-margin 14.3% 21.0% - 17.4% 21.8% -

Employees - - - 530 656 -19%Outlets - - - 58 56 4%

Sweden

• Profitability weakened due to the decline in sales and restructuring costs.

• 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.

4245

42 42

32 3331

0

5

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25

30

35

40

45

50

Q1 2008 Q2 Q3 Q4 Q1 2009 Q2 Q30 %

5 %

10 %

15 %

20 %

25 %

Sales EBIT-%MEUR

-16% at constant currency


Norway

• 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.

37 3937

34

29

2527

0

5

10

15

20

25

30

35

40

45

Q1 Q2 Q3 Q4 Q1 2009 Q2 Q30 %

5 %

10 %

15 %

20 %

25 %

Net sales EBIT-%MEUR

Q3 Jan-SeptNorway 2009 2008 Change 2009 2008 Change

Net sales, MEUR 26.5 36.8 -28% 80.6 112.4 -28%EBIT, MEUR 2.3 6.2 -63% 8.2 20.9 -61%EBIT-margin 8.6% 16.8% - 10.1% 18.6% -




Denmark

• The slowdown in Danish construction activity continued.

• Intense price competition due to the fragmented equipment rental market continued to burden profitability.

1415

14

16

1112

11

0

2

4

6

8

10

12

14

16

18

Q1 2008 Q2 Q3 Q4 Q1 2009 Q2 Q3-6 %

-4 %

-2 %

0 %

2 %

4 %

6 %

8 %

10 %

12 %

Net sales EBIT-%

Q3 Jan-Sept

Denmark 2009 2008 Change 2009 2008 Change

Net sales, MEUR 10.5 14.0 -25% 33.4 42.7 -22%EBIT , MEUR -0.3 0.7 -145% 0.1 3.1 -98%EBIT-margin -2.8% 4.7% - 0.2% 7.4% -


MEUR


Europe East Russia, Estonia, Latvia, Lithuania, Ukraine

20

2326

21

9

12

19

0

5

10

15

20

25

30

Q1 2008 Q2 Q3 Q4 Q1 2009 Q2 Q3-40 %

-30 %

-20 %

-10 %

0 %

10 %

20 %

30 %

Net sales EBIT-%• 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.

Q3 Jan-Sept

Europe East 2009 2008 Change 2009 2008 Change

Net sales, MEUR 18.9 25.6 -26% 40.1 69.0 -42%EBIT , MEUR -2.0 3.6 -155% -8.6 11.5 -175%EBIT-margin -10.4% 14.1% - -21.4% 16.6%

Employees - - - 399 672 -41%Outlets - - - 45 52 -13%


MEUR


• 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.

17

21

27

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18

0

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25

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Q1 2008 Q2 Q3 Q4 Q1 2009 Q2 Q30 %2 %4 %6 %8 %10 %12 %14 %16 %18 %20 %

Net sales EBIT-%

Europe Central Poland, Hungary, Czech Republic, Slovakia

MEUR

Q3 Jan-Sept

Europe Central 2009 2008 Change 2009 2008 Change

Net sales, MEUR 18.2 27.4 -34% 48.6 65.0 -25%EBIT , MEUR 1.6 4.7 -67% 3.8 8.2 -53%EBIT-margin 8.6% 17.2% - 7.9% 12.6% -




No major pick-up in Nordic construction companies’ order backlogs in Q3

Including: NCC, Veidekke, Skanska, YIT, Lemminkäinen

12 © 2009 Ramirent

‐40 %

‐30 %

‐20 %

‐10 %

0 %

10 %

20 %

30 %

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

18 000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2005 2006 2007 2008 2009

MEUR Order Backlog for Nordic Construction Companies

Order Backlog

Change % YoY

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 2009.


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


0

50

100

150

200

250

300

350

400

Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009

R12 Employee Benefits R12 Other operating costs

Fixed cost savings of at least 50 MEUR in 2009 are progressing according to plan

4 0373 894

3 502

32653177

3100

2 500

2 700

2 900

3 100

3 300

3 500

3 700

3 900

4 100

4 300

4 500

Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Target Q4 2009

Number of personnel R 12 Fixed costs development*

-860 people or -21%from Q3 2008

-55 MEUR or -19% from Q3 2008

MEUR


293 284278

259238

*excluding restructuring costs

4x

Financial position improved further

96 %84 %

70 %69 %

81 %

113 % 106 % 108 %99 %

86 %74 %

0 %

20 %

40 %

60 %

80 %

100 %

120 %

0

50

100

150

200

250

300

350

400

2004 2005 2006 2007 Q1 2008

Q2 2008

Q3 2008

Q4 2008

Q1 2009

Q2 2009

Q3 2009

Net debt Gearing (%)

MEUR

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.


48

8

10 11

5 5

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20

3835

5

30

5

34

9

24

142

95

3 3

1 3

27

5

1 3

Inhabitants(million)

Construction Output(billion EUR)

Attractive CEE construction markets

Source: Euroconstruct June 2008

Others

Speedy Hire

Hewden

SarensGAM

Select Plant Hire

Algeco ScotsmanCramo

RamirentLoxam

Mediaco Lifting

Long-term growth drivers still in place

Long-term growing industry Rental penetration

Growth drivers are construction, industrial activity and increased rentalpenetrationFragmented European rental market of EUR 33 bnTop 50 rental companies comprise 33%of the European market

Top 10 companies share of total market ~15%

0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 %

Europe avg. Finland Denmark Sweden UK

Source: ERA 2008 report, Note: Finland company estimate


Magnus Rosén, CEO+358 20 750 [email protected]

Jonas Söderkvist, interim CFO+46 70 578 [email protected]

Franciska Janzon, IR +358 20 750 [email protected]

More informationwww.ramirent.com

18

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 %


Largest shareholders remain stable

Number of shares

% of share capital

1. Nordstjernan AB 31 186 331 28.69

2. Oy Julius Tallberg Ab 11 962 229 11.01

3. Varma Mutual Pension Insurance Company 7 831 299 7.20

4. Ilmarinen Mutual Pension Insurance 3 660 214 3.37

5. Odin Norden 1 860 228 1.71

6. Odin Finland 1 523 244 1.40

7. Odin Europa SMB 1 384 780 1.27

8. Mariatorp 1 125 000 1.03

9. Veritas Pension Insurance Company Ltd. 1 051 000 0.97

10. Nordea Fennia Fund 780 000 0.72

1) As per 31 October, 2009


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, 2009. 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.


Documents

Credit project update - Ramirentinvestors.ramirent.com/sites/default/files/misc/ramirent_20091111_q3_2009... · 11.11.2009 · Ramirent in brief The leading equipment rental company