Ramirent Interim Report Q2 2014

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Ramirent Interim Report Q2 2014

  1. 1. © 2014 Ramirent Q2 Interim Report January–June 2014 NEW STRATEGIC ACQUISITIONS IN SLOW SECOND QUARTER 29 July 2014 Magnus Rosén, President and CEO Jonas Söderkvist, CFO and EVP Corporate Functions
  2. 2. © 2014 Ramirent© 2014 Ramirent Agenda 2 Group performance Segment review Market outlook Key figures Financial position Company overview Appendix
  3. 3. © 2014 Ramirent 3 New strategic acquisitions in slow second quarter Key figures Q2/2014 Business performance Market situation Slower than expected sales of equipment rental in many of our markets Demand picked up in Finland, the Baltic States and in Poland Net sales down by 5.6% or by 2.1% at comparable exchange rates EBITA MEUR 16.2 (22.7) or 10.7% (14.1%) of net sales Gross capex MEUR 78.3 (30.0) Cash flow after investments MEUR -21.5 (-5.2) Efficiency improvement measures and strict cost control continued, but were insufficient to mitigate impact on profitability from lower demand New acquisitions strengthen offering in core areas of safety, weather protection and industrial services Interim Report January–June 2014 l 29 July 2014
  4. 4. © 2014 Ramirent 4 Second quarter net sales decreased by 2.1% at comparable exchange rates Change in net sales Q2/2014 -5.6% -2.1% -6% -5% -4% -3% -2% -1% 0% Q2/2014 reported Q2/2014 at comparable exchange rates Net sales (MEUR) Q2/2014 Net sales down by 5.6% or 2.1% at comparable exchange rates 160.8 151.8 0 20 40 60 80 100 120 140 160 180 Q2/2013 reported Q2/2014 reported In Sweden and Norway, lower than expected sales and slow progress in certain projects impacted on sales In Finland, sales increased mainly due to acquisitions and recovering market demand in central and south region Interim Report January–June 2014 l 29 July 2014
  5. 5. © 2014 Ramirent 5 Second–quarter EBITA margin was below the previous year level 14.1% 10.7% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% Q2/2013 reported Q2/2014 reported Q2/2014 reported EBITA margin 10.7% (14.1%) EBITA margin Interim Report January–June 2014 l 29 July 2014 EBITA (MEUR) Q2/2014 22.7 16.2 0 5 10 15 20 25 Q2/2013 reported Q2/2014 reported Q2/2014 reported EBITA MEUR 16.2 (22.7)
  6. 6. © 2014 Ramirent 6 Earnings per share weakened to 0.07 (0.11) Earnings Per Share (EPS) -0.05 0.04 0.08 0.07 0.00 0.08 0.17 0.16 0.07 0.14 0.19 0.18 0.10 0.11 0.16 0.13 0.02 0.07 -0.06 -0.04 -0.02 0.00 0.02 0.04 0.06 0.08 0.10 0.12 0.14 0.16 0.18 0.20 0.22 Q1 2010 Q2 Q3 Q4 Q1 2011 Q2 Q3 Q4 Q1 2012 Q2 Q3 Q4 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Interim Report January–June 2014 l 29 July 2014
  7. 7. © 2014 Ramirent 7 Two complementary acquisitions and one outsourcing deal signed in the second quarter 2014 M&A criteria Interim Report January–June 2014 l 29 July 2014  Supports growing focus on safety and creates a specialised customer offer through Ramirent's network  Strengthens position in the growing field of weather protection  Strengthens capabilities in developing services to industrial customer base DCC  Sweden-based Safety Solutions Jonsereds AB specialises in fall protection and safety systems design  18 employees  DCC (Dry Construction Concept) is a provider of weather shelter solutions and scaffolding in Sweden, Finland and Denmark  Annual sales approx. EUR 16 million and 120 employees  Outsourcing of significant parts of Empower's fleet equipment in Finland  Estimated annual sales of approx. EUR 1 million
  8. 8. © 2014 Ramirent 8 Events after the reporting period: Ramirent and Zeppelin Rental launch Joint Venture for Fehmarnbelt tunnel construction project JV rationale  Both parties committed to high standards of quality and job safety as well as sustainability  Shared expertise in handling large- scale projects  Complementary fleet capacity, know how and services Interim Report January–June 2014 l 29 July 2014  The Joint Venture Fehmarnbelt Solutions Services ― subject to relevant authorities approval ― will serve the cross-border tunnel construction project between Denmark and Germany  JV offers modular space, maintenance and repair, logistic and safety management, energy and climate solutions as well as other site services  Unique customer offer on both the German and Danish side  The project's estimated construction volume is 5.5 billion Euros, of which potential equipment rental volume amounts to 1-3%.
  9. 9. © 2014 Ramirent Customer First Common Ramirent Platform Sustainable profitable growth Balanced business portfolio 9 Continued focus on Ramirent's strategic priorities Strong local customer orientation and tailored offerings Increased synergies & operational excellence Further widening the customer base Interim Report January–June 2014 l 29 July 2014
  10. 10. © 2014 Ramirent Rental developing into two complementary business models… 10  Primarily small and medium sized customers  Primarily machines and basic services Retail / OTC Proactive Solutions Provider  Primarily large and medium sized customers  Solutions provider through equipment, services and technical know-how  Focus on key account management and partnerships Interim Report January–June 2014 l 29 July 2014
  11. 11. © 2014 Ramirent 11 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 client 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 …creating an opportunity for Ramirent to leverage on its know-how Interim Report January–June 2014 l 29 July 2014
  12. 12. © 2014 Ramirent 12 Interim Report January–June 2014 l 29 July 2014 Sales and pricing Fleet management Sourcing Other • Development of the network and customer care model • Revenue management • Promoting of services and integrated solutions • Optimisation of fleet life-cycle • Development of logistics and maintenance & repair processes • Developing support processes and systems • Optimisation of sourcing terms and supplier portfolio • Common system platform and performance management model • Developing efficient back-office functions Efficiency actions run across all operations We drive an agenda to increase EBITA margin to 17% by the end of 2016
  13. 13. © 2014 Ramirent© 2014 Ramirent 13 Group performance Segment review Market outlook Key figures Financial position Company overview Appendix
  14. 14. © 2014 Ramirent 14 Finland Q2/2014: Acquisitions and recovering market demand supported sales growth • Net debt to EBITDA 1.1x in Q4 • Long-term financial target: below 1.6x (at the end of FY) 17.7% 16.6% 15.4% 0% 5% 10% 15% 20% 25% 30% Q1 2012 Q2 Q3 Q4 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Net sales (MEUR)Highlights Q2/2014 41.4 36.4 39.0 0 5 10 15 20 25 30 35 40 45 50 Q1 2012 Q2 Q3 Q4 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 EBITA marginKey figures Net sales increased mainly due to acquisitions and recovering market demand in Central and South region Profitability was supported by cost control and increased demand for solutions Finland Q2 2014 Q2 2013 Change 2013 Net sales, MEUR 39.0 36.4 7.3% 151.9 EBITA, MEUR 6.0 6.0 −0.7% 25.7 % of net sales 15.4% 16.6% 16.9% Capital expenditure, MEUR 22.3 6.4 246.5% 28.8 Personnel (FTE) 532 586 −9.2% 547 Customer centres 68 76 −10.5% 74 Net sales up by 7.3% Interim Report January–June 2014 l 29 July 2014
  15. 15. © 2014 Ramirent 15 Sweden Q2/2014: Sales were negatively impacted by lower than expected demand • Net debt to EBITDA 1.1x in Q4 • Long-term financial target: below 1.6x (at the end of FY) 18.3% 18.0% 13.8% 0% 5% 10% 15% 20% 25% Q1 2012 Q2 Q3 Q4 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Net sales (MEUR)Highlights Q2/2014 50.9 53.1 48.7 0 10 20 30 40 50 60 70 Q1 2012 Q2 Q3 Q4 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 EBITA marginKey figures Sales were negatively impacted by lower than expected demand and slow progress in start-up of new projects Cost reductions are being implemented Net sales down by 8.4% or by 3.3% at comparable exchange rates Sweden Q2 2014 Q2 2013 Change 2013 Net sales, MEUR 48.7 53.1 −8.4% 207.3 EBITA, MEUR 6.7 9.6 −29.8% 36.6 % of net sales 13.8% 18.0% 17.6% Capital expenditure, MEUR 35.9 8.2 336.1% 35.8 Personnel (FTE)1) 764 694 10.1% 656 Customer centres 74 76 −2.6% 74 Interim Report January–June 2014 l 29 July 2014 1) The increase in number of employees was mainly due to the acquisition of DCC
  16. 16. © 2014 Ramirent 16 Norway Q2/2014: Profitability burdened by weaker demand and pricing pressure • Net debt to EBITDA 1.1x in Q4 • Long-term financial target: below 1.6x (at the end of FY) 15.8% 20.4% 12.5% 0% 5% 10% 15% 20% 25% Q1 2012 Q2 Q3 Q4 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Net sales (MEUR)Highlights Q2/2014 38.1 38.8 33.8 0 10 20 30 40 50 60 Q1 2012 Q2 Q3 Q4 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 EBITA marginKey figures Sales declined as a result of weaker demand from the residential sector Profitability was impaired by decreased fleet utilisation and continued pricing pressure Net sales down by 12.8% or by 5.9% at comparable exchange rates Norway Q2 2014 Q2 2013 Change 2013 Net sales, MEUR 33.8 38.8 −12.8% 153.6 EBITA, MEUR 4.2 7.9 −46.7% 22.0 % of net sales 12.5% 20.4% 14.3% Capital expenditure, MEUR 4.8 8.3 −42.2% 34.5 Personnel (FTE) 449 465 −3.3% 460 Customer centres 43 43 - 43 Interim Report January–June 2014 l 29 July 2014
  17. 17. © 2014 Ramirent Denmark Q2 2014 Q2 2013 Change 2013 Net sales, MEUR 9.1 11.2 −18.8% 44.0 EBITA, MEUR −1.7 −0.0 n/a −4.31) % of net sales −19.1% −0.4% −9.7%1) Capital expenditure, MEUR 1.7 2.2 −23.5% 6.6 Personnel (FTE) 136 184 −26.0% 175 Customer centres 16 16 − 16 17 Denmark Q2/2014: Lower sales level burdened profitability • Net debt to EBITDA 1.1x in Q4 • Long-term financial target: below 1.6x (at the end of FY) 2.5% -0.4% -19.1% -25% -20% -15% -10% -5% 0% 5% 10% Q1 2012 Q2 Q3 Q4 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Net sales (MEUR)Highlights Q2/2014 11.2 11.2 9.1 0 2 4 6 8 10 12 14 Q1 2012 Q2 Q3 Q4 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 EBITA marginKey figures Sales decreased due to weakened demand in especially western parts of Denmark Activities to streamline operations and realise synergies with Sweden continued Net sales down by 18.8% or by 18.7% at comparable exchange rates 1) EBITA excluding non–recurring items was EUR −2.8 million or −6.3% of net sales in January– December 2013. The non-recurring items included the EUR 1.5 restructuring provision for the third quarter of 2013. Interim Report January–June 2014 l 29 July 2014
  18. 18. © 2014 Ramirent 18 Europe East Q2/2014: Sales growth driven by good demand in the Baltic States • Net debt to EBITDA 1.1x in Q4 • Long-term financial target: below 1.6x (at the end of FY) Net sales (MEUR)Highlights Q2/2014 15.0 7.6 8.2 0 2 4 6 8 10 12 14 16 18 20 Q1 2012 Q2 Q3 Q4 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 EBITA marginKey figures Sales growth driven by residential construction and power plant projects in the Baltic States Increased rental income and higher fleet utilisation supported profitability Uncertainty continued in Fortrent markets Net sales up by 8.4% and also by 8.4% at comparable exchange rates 1) EBITA excluding non–recurring items was EUR 7.2 million, representing 20.2% of net sales. The non–recurring items included the non–taxable capital gain of EUR 10.1 million from the formation of Fortrent, recorded in the first quarter of 2013. 113.5% Q1/2013 EBITA margin excl. non- recurring items was 9.1% Europe East Q2 2014 Q2 2013 Change 2013 Net sales, MEUR 8.2 7.6 8.4% 35.5 EBITA, MEUR 1.0 0.1 n/a 17.31) % of net sales 12.1% 0.8% 48.8%1) Capital expenditure, MEUR 4.7 2.8 66.6% 9.6 Personnel (FTE) 233 237 −1.7% 235 Customer centres 42 41 2.4% 41 The Baltic States Interim Report January–June 2014 l 29 July 2014 11.2% 0.8% 12.1% 11.4% 14.1% -5% 0% 5% 10% 15% 20% 25% 30% 35% 40% Q1 2012 Q2 Q3 Q4 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2
  19. 19. © 2014 Ramirent 19 Europe Central Q2/2014: Price increases started to strengthen profitability • Net debt to EBITDA 1.1x in Q4 • Long-term financial target: below 1.6x (at the end of FY) 2.4% 2.7% 5.8% -25% -20% -15% -10% -5% 0% 5% 10% 15% 20% Q1 2012 Q2 Q3 Q4 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Net sales (MEUR)Highlights Q2/2014 15.3 14.1 13.3 0 2 4 6 8 10 12 14 16 18 20 Q1 2012 Q2 Q3 Q4 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 EBITA marginKey figures Comparable sales increased thanks to large ongoing projects and increased overall demand in Poland Subdued demand in the Czech Republic and Slovakia continued Price increases started to strengthen profitability Adjusted for divested operations* net sales were up by 7.7% 1) Adjusted for the divestment of the Hungarian operations in the third quarter 2013* the increase in net sales was 7.7%. 2) EBITA excluding non–recurring items was EUR 1.2 million or 2.0% of net sales in January–December 2013. The non-recurring items included the EUR 1.9 million loss from disposal of operations in Hungary, recorded in the third quarter 2013. Europe Central Q2 2014 Q2 2013 Change 2013 Net sales, MEUR 13.31) 14.1 −5.5%1) 57.3 EBITA, MEUR 0.8 0.4 107.3% −0.72) % of net sales 5.8% 2.7% −1.2%2) Capital expenditure, MEUR 4.0 1.1 269.1% 7.1 Personnel (FTE) 482 585 −17.7% 479 Customer centres 58 73 −20.5% 56 Interim Report January–June 2014 l 29 July 2014
  20. 20. © 2014 Ramirent© 2014 Ramirent Group performance Segment review Market outlook Key figures Financial position Company overview Appendix 20
  21. 21. © 2014 Ramirent 21 Strongest construction output growth expected in Sweden and Poland in 2014 Construction output growth estimates for 2014 Source: Euroconstruct 6/2014 Nordic countries Baltic countries and Europe Central 2014E Finland 0.8% Sweden 4.4% Norway 0.4% Denmark 2.5% 2014E Estonia -7.0% Latvia -2.0% Lithuania 3.0% Poland 4.2% The Czech Republic -3.8% Slovakia 1.7% Interim Report January–June 2014 l 29 July 2014
  22. 22. © 2014 Ramirent 22 Total Nordic construction market expected to recover slightly in 2014 Construction output in the Nordic countries (index) Interim Report January–June 2014 l 29 July 2014 93 106 113 90 70 80 90 100 110 120 130 2008 2009 2010 2011 2012 2013 2014E 2015F Finland Sweden Norway Denmark Total Source: Euroconstruct 6/2014 Total Nordic construction output 2014F: +1.9%
  23. 23. © 2014 Ramirent 23 Poland clearly the strongest market in Europe Central Construction output in the Baltic Countries and Europe Central countries (index) Interim Report January–June 2014 l 29 July 2014 85 120 72 70 50 60 70 80 90 100 110 120 130 2008 2009 2010 2011 2012 2013 2014E 2015F The Baltic Countries Poland The Czech Republic Slovakia Source: Euroconstruct 6/2014
  24. 24. © 2014 Ramirent 24 Nordic construction order books including Skanska, NCC and YIT increased by 2.6% compared to the previous year Nordic construction companies order books (at comparable exchange rates) billion Nordic construction order books including Skanska, NCC and YIT increased by 2.6% at comparable exchange rates compared to the previous year Ramirent's rolling 12 months net sales declined by 10.2% (y- o-y) *YIT's order book not fully comparable as it includes also order book from the Baltic States, Slovakia and the Czech Republic (change in reporting structure as of Q1/2014). Interim Report January–June 2014 l 29 July 2014 -40% -20% 0% 20% 40% 60% 0 2 4 6 8 10 12 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 NCC Skanska YIT* Change in Net sales (y-o-y), R12 Ramirent Change in order backlog (y-o-y), Nordic construction
  25. 25. The economic growth in 2014 is expected to be modest and construction market demand remains mixed in our core markets. Ramirent will maintain strict cost control and, for 2014, capital expenditure is expected to be around the same level as in 2013. The strong financial position will enable the Group to continue to address profitable growth opportunities. Ramirent outlook for 2014 unchanged
  26. 26. © 2014 Ramirent© 2014 Ramirent Group performance Segment review Market outlook Key figures Financial position Company overview Appendix
  27. 27. 27 Finland Sweden Norway Denmark Baltics Central NetSales (MEUR) EBITAmargin (%) R12 Q1/2013 R12 Q1/2014 Rolling 12 months EBITA margin improved in the Baltic States and Europe Central 17.9% 17.0% 16.0% 0.4% 16.6% -1.7% 16.7% 15.4% 11.0% -13.3% 18.8% 1.4% -20% -10% 0% 10% 20% Finland Sweden Norway Denmark The Baltic States Europe Central 158.2 214.3 169.1 43.9 29.9 59.3 151.1 198.0 144.5 42.3 32.6 57.3 0.0 50.0 100.0 150.0 200.0 Finland Sweden Norway Denmark The Baltic States Europe Central 1) Rolling 12 months EBITA excluding non–recurring items was EUR −4.1 million or −9.8% of net sales. The non-recurring items included the EUR 1.5 restructuring provision for the third quarter of 2013. 2) Rolling 12 months EBITA excluding non–recurring items was EUR 3.7 million or 6.4% of net sales. The non-recurring items included the EUR 1.9 million loss from disposal of operation in Hungary, recorded in the third quarter 2013. © 2014 Ramirent Interim Report January–June 2014 l 29 July 2014 1) 2)
  28. 28. © 2014 Ramirent 28 Net sales affected by exchange rates and lower demand Net sales (MEUR) Breakdown of net sales (MEUR) 104.5 98.1 48.7 47.9 7.6 5.8 0 20 40 60 80 100 120 140 160 180 Q2/2013 Q2/2014 Income from sold equipment Ancillary income Rental income −24.2% −1.8% −6.0% 160.8 5.6 3.4 151.8 0 20 40 60 80 100 120 140 160 180 Q2/2013 reported Exchange rates Underlying change Q2/2014 reported Second-quarter net sales MEUR 151.8 (160.8) down by 5.6% or 2.1% at comparable exchange rates R12 net sales MEUR 623.0 (693.6) down by 10.2% Interim Report January–June 2014 l 29 July 2014
  29. 29. © 2014 Ramirent 29 Personnel reductions in Finland, Norway and Denmark during the first half of the year Customer centres Personnel (FTE) 334 325 306 304 302 301 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Finland Sweden Norway Denmark Europe East -Baltics Europe Central Number of customer centres was adjusted to prevailing market conditions in Finland during the H1/2014 Decrease of 24 customer centres year-on-year Second-quarter employee benefit expenses MEUR 37.5 (39.3) Decrease of 102 in number of employees from Q2/13 to Q2/14 The number of employees increased in Sweden mainly due to acquisition of DCC Group: 2,651 (2,781) Interim Report January–June 2014 l 29 July 2014 Finland 532 Sweden 764 Norway 449 Denmark 136 Europe East - Baltics 233 Europe Central 482
  30. 30. © 2014 Ramirent 30 Ramirent’s fixed costs 2.9 MEUR lower compared to last year Fixed costs (MEUR) and % of Group net sales 65.1 61.5 58.6 38.3% 38.3% 38.6% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 0 10 20 30 40 50 60 70 80 Q1 2012 Q2 Q3 Q4 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Group fixed costs MEUR 58.6 (61.5) in the second quarter Second-quarter fixed costs of net sales 38.6% (38.3%) Q2/14 fixed costs: • Employee benefit expenses MEUR 37.5 • Other operating expenses MEUR 21.2 Fixed costs rolling 12 months MEUR 244.7 or 39.3% of net sales Interim Report January–June 2014 l 29 July 2014
  31. 31. © 2014 Ramirent 31 Second-quarter EBITDA margin weakened from the previous year EBITDA margin 30.3% 27.8% 0% 5% 10% 15% 20% 25% 30% 35% Q2/2013 reported Q2/2014 reported EBITDA margin quarterly 23.9% 27.2% 30.4% 30.3% 27.8% 0% 5% 10% 15% 20% 25% 30% 35% Q1 2010 Q2 Q3 Q4 Q1 2011 Q2 Q3 Q4 Q1 2012 Q2 Q3 Q4 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Second-quarter EBITDA MEUR 42.2 (48.8) Second-quarter EBITDA margin 27.8% (30.3%) Year-to-date EBITDA MEUR 73.9 (96.8) or 25.5% (30.9%) of net sales Year-to-date EBITDA excluding non-recurring items and adjusted for transferred or divested operations was MEUR 73.9 (84.8) or 25.5% (27.7%) Interim Report January–June 2014 l 29 July 2014
  32. 32. © 2014 Ramirent 32 Second-quarter EBITA was 16.2 MEUR, 10.7% of net sales 6.2% 11.0% 14.6% 14.1% 10.7% -6% -4% -2% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% Q1 2010 Q2 Q3 Q4 Q1 2011 Q2 Q3 Q4 Q1 2012 Q2 Q3 Q4 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 14.1% 10.7% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% Q2/2013 reported Q2/2014 reported Second-quarter EBITA MEUR 16.2 (22.7) Second-quarter EBITA margin 10.7% (14.1%) Year-to-date EBITA MEUR 23.3 (45.3) or 8.0% (14.4%) of net sales Year-to-date EBITA excl. non-recurring items and adjusted for transferred or divested operations was MEUR 23.3 (34.0) or 8.0% (11.1%) EBITA margin EBITA margin quarterly Interim Report January–June 2014 l 29 July 2014
  33. 33. © 2014 Ramirent 33 Adjusted with comparable company structure, H1 EBITA margin was 8.0% (11.1%) 45.3 35.1 10.1 1.2 34.0 23.3 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 50.0 1-6/2013 reported Capital gain 1-6/2013 excl. capital gain Results of RUS, UKR & HUN 1-6/2013 adjusted 1-6/2014 reported EBITA (MEUR) 1-6/13 vs 1-6/14 H1/2013 EBITA includes a capital gain of MEUR 10.1 from the transaction to form Fortrent and the results of transferred or divested operations (RUS, UKR & HUN) H1/2014 EBITA excl. non- recurring items and adjusted for transferred or divested operations was MEUR 23.3 (34.0) or 8.0% (11.1%) of net sales 14.4% 11.1% 8.0% EBITA margin11.5% Interim Report January–June 2014 l 29 July 2014
  34. 34. © 2014 Ramirent 34 Group R12 EBITA margin was 12.5% Q2/2014 R12 EBITA margin by segment (%) *EBITA excluding non-recurring items and transferred operations to Fortrent and divestment of operations in Hungary 16.7 15.4 11.0 21.8 1.4 12.5 -5 0 5 10 15 20 Finland Sweden Norway Denmark Europe East Europe Central Group* Group EBITA targeted to reach 17% by the end of 2016… …by delivering at least 18% EBITA margin on segment level Interim Report January–June 2014 l 29 July 2014 -13.3 18% 10%
  35. 35. © 2014 Ramirent 35 Three acquisitions and one outsourcing deal closed during the second quarter Gross capital expenditure (MEUR) and % of net sales 12.5 21.7 9.7 18.1 31.9 44.6 119.9 45.9 35.7 23.9 28.0 36.8 32.4 30.029.5 33.8 23.4 78.3 0% 10% 20% 30% 40% 50% 60% 70% 80% 0 20 40 60 80 100 120 140 Q1 2010 Q2 Q3 Q4 Q1 2011 Q2 Q3 Q4 Q1 2012 Q2 Q3 Q4 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Gross Capex Share of net sales-% Interim Report January–June 2014 l 29 July 2014 Second-quarter gross capex MEUR 78.3 (30.0) of which MEUR 46.0 (0.0) related to acquisitions Investments in machinery and equipment MEUR 50.1 (28.0) in the second quarter Gross capex in the first half MEUR 101.8 (62.4)
  36. 36. © 2014 Ramirent 36 Capital expenditure focused on Finland and Sweden, mainly as a result of acquisitions • Net debt to EBITDA 1.1x in Q4 • Long-term financial target: below 1.6x (at the end of FY) Capital expenditure by segment (MEUR) Investments 6.4 8.2 8.3 2.2 2.8 1.1 22.3 35.9 4.8 1.7 4.7 4.0 0.0 20.0 40.0 Finland Sweden Norway Denmark East Central Q2/14 Q2/13 Interim Report January–June 2014 l 29 July 2014 Investments in machinery and equipment MEUR 50.1 (28.0) in the second quarter In the first half, investments in machinery and equipment MEUR 72.1 (57.3)
  37. 37. © 2014 Ramirent 37 Cash flow lower than in the previous year due to strategic acquisitions -60% -40% -20% 0% 20% 40% 60% 80% -60 -40 -20 20 40 60 80 EBITDA (MEUR) Cashflow after investments (MEUR) Cash Conversion Cash flow after investments (MEUR) Cash conversion (MEUR and %) 19 -5 34 25 -5 -22 -30 -20 -10 0 10 20 30 40 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Cash flow after investments MEUR -21.5 (-5.2) in the second quarter Cash flow after investments MEUR -26.6 (13.8) in the first half of the year Interim Report January–June 2014 l 29 July 2014
  38. 38. © 2014 Ramirent 38 Return on investment at 11.9% at the end of the second quarter Return on investment % ROI % and Invested capital MEUR 19.2% 11.9% 0% 5% 10% 15% 20% 25% Q2/2013 Q2/2014 508 536 602 611 611 5.1% 10.4% 19.0% 19.2% 11.9% 0% 5% 10% 15% 20% 25% 0 100 200 300 400 500 600 700 Q1 2010 Q2 Q3 Q4 Q1 2011 Q2 Q3 Q4 Q1 2012 Q2 Q3 Q4 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Rolling 12 months Return on investment at the end of Q2 was 11.9% (19.2%) Return on investment decreased compared year- on-year mainly due to lower profit generation The Group's invested capital amounted to MEUR 610.5 (611.3) at the end of Q2/14 Interim Report January–June 2014 l 29 July 2014
  39. 39. © 2014 Ramirent 39 Return on equity at 12.1% at the end of the second quarter Return on equity % ROE % and Total equity (MEUR) 19.3% 12.1% 0% 5% 10% 15% 20% 25% Q2/2013 Q2/2014 296 296 319 344 325 -1.8% 8.3% 19.0% 19.3% 12.1% -5% 0% 5% 10% 15% 20% 25% 0 50 100 150 200 250 300 350 400 Q1 2010 Q2 Q3 Q4 Q1 2011 Q2 Q3 Q4 Q1 2012 Q2 Q3 Q4 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Rolling 12 months Return on equity at the end of Q2 was 12.1% (19.3%) Long-term financial target: ROE of 18% over a business cycle The Group's total equity amounted to MEUR 324.7 (344.0) at the end of Q2/14 Equity per share was 3.00 (3.19) at the of the quarter Interim Report January–June 2014 l 29 July 2014
  40. 40. © 2014 Ramirent© 2014 Ramirent 40 Group performance Segment review Market outlook Key figures Financial position Company overview Appendix
  41. 41. © 2014 Ramirent 41 Ramirent's financial position remained strong in the second quarter Net debt (MEUR) Net debt to EBITDA ratio 220 264 230 207 212 273 0 50 100 150 200 250 300 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 1.9x 1.6x 1.4x 1.2x 1.6x 0.0 0.5 1.0 1.5 2.0 2.5 Q1 2010 Q2 Q3 Q4 Q1 2011 Q2 Q3 Q4 Q1 2012 Q2 Q3 Q4 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Net debt MEUR 273.4 (264.2) at the end of Q2/14 Net debt increased by 3.5% (y-o-y) Net debt to EBITDA 1.6x at the end of Q2/14 Long-term financial target: below 1.6x (at the end of FY) Interim Report January–June 2014 l 29 July 2014
  42. 42. © 2014 Ramirent 42 Equity ratio and gearing weakened slightly year-on-year Equity ratio (%) Gearing (%) 38.2% 43.1% 45.2% 48.9% 43.8% 40.3% 0% 10% 20% 30% 40% 50% 60% Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 64.5% 76.8% 63.9% 55.8% 64.2% 84.2% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Second-quarter equity ratio decreased to 40.3% (43.1%) Total equity amounted to MEUR 324.7 (344.0) at the end of the quarter Second-quarter gearing increased to 84.2% (76.8%) Net debt MEUR 273.4 (264.2) at the end of the quarter Interim Report January–June 2014 l 29 July 2014
  43. 43. © 2014 Ramirent 43 An ordinary dividend of EUR 0.37 per share was paid and the AGM authorised the Board to decide on a potential additional dividend of up to EUR 0.63 per share Earnings Per Share and Dividend Per Share 0.04 0.13 0.41 0.59 0.50 0.15 0.25 0.28 0.34 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00 2009 2010 2011 2012 2013 EPS DPS Ordinary dividend of EUR 0.37 per share paid in April 2014 representing a payout ratio of 73.7% (57.6%) for fiscal year 2013 Potential for an additional dividend of up to EUR 0.63 per share for fiscal year 2013, which would represent a total payout ratio of up to 199% for fiscal year 2013 Long-term financial target: Dividend payout ratio at least 40% of net profit 1.00 0.37 0.63 Interim Report January–June 2014 l 29 July 2014
  44. 44. © 2014 Ramirent 44 Working capital at 4.5% of net sales Working capital (MEUR) Working capital / Rolling 12 months net sales 3.5% 7.2% 5.3% -2.9% 4.5% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 15.3 15.0 14.4 11.5 12.6 13.2 115.4 128.7 125.3 109.2 108.6 115.6 -143.3 -98.2 -102.0 -104.4 -136.6 -100.0 -200 -150 -100 -50 0 50 100 150 200 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Trade payables and other liabilities Trade and other receivables Inventories Second-quarter credit losses and change in the allowance for bad debt amounted to MEUR 0.0 (-0.9) Working capital of rolling 12 months net sales 4.5% (-2.9%) Dividend of MEUR 39.8 (36.6) paid in April 2014 Interim Report January–June 2014 l 29 July 2014
  45. 45. © 2014 Ramirent 45 Interim Report January–March 2014 l 8 May 2014 At the end of June 2014, Ramirent had unused committed back–up loan facilities of MEUR 140.6 Repayment schedule of interest-bearing liabilities (MEUR) Ramirent had unused committed back-up loan facilities of MEUR 140.6 available at the end of the second quarter The average interest rate of the loan portfolio including interest rate hedges was 2.9% (3.7%) at the end of the second quarter In June, Revolving Credit Facility agreement (MEUR 145.0) under SFA agreement re- signed with extension of three years to 2020 In addition to bank facilities, Ramirent is utilising a domestic commercial paper program of up to EUR 150 million Net debt EUR 273.4 million EUR 415.0 million in committed credit facilities 75 95 100 145 2014 2015 2016 2017 2018 2019 2020
  46. 46. © 2014 Ramirent 46 Two of our long-term financial targets were met in Q2/2014 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 Q2/2014 12.1% 1.6x 73.7% of 2013 net profit STATED OBJECTIVES Interim Report January–June 2014 l 29 July 2014
  47. 47. 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
  48. 48. © 2014 Ramirent© 2014 Ramirent 48 Group performance Segment review Market outlook Key figures Financial position Company overview Appendix
  49. 49. © 2014 Ramirent Ramirent is a generalist equipment rental and service company 49 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 2,651 employees serving 200,000 customers with 200,000 rental items MEUR 647 of sales (2013) Definition of Ramirent's business and strategic choices Interim Report January–June 2014 l 29 July 2014
  50. 50. © 2014 Ramirent 50 We increased geographical focus on core Baltic Rim markets and widened the customer base Europe Central (PL+CZ+SL) # 1 58 customer centres Finland # 1 68 customer centres Sweden # 2 74 customer centres Norway # 1 43 customer centres Denmark # 1 16 customer centres Europe East –Baltics # 1 42 customer centres Finland 24% Sweden 32% Norway 23% Denmark 6% Europe East - Baltics 5% Europe Central 9% Sales per customers Q2/2014 Construction 63%Industrial 17% Services & Retail 13% Public 4% Private 3% Current state close to target of 40% non-construction dependent sales Russia and Ukraine presence through JV Fortrent Sales per segment Q2/2014 Interim Report January–June 2014 l 29 July 2014
  51. 51. © 2014 RamirentEvent / Name of presentor 51 0 200 400 600 800 1000 Loxam Cramo Ramirent Algeco Scotsman Kiloutou Sarens Speedy Hire Liebherr- Mietpartner Mediaco Levage Zeppelin Rental Net sales 2013 (MEUR) Net sales 2013 (MEUR) Largest rental companies in Europe Largest rental companies globally One of the leading equipment rental companies both in Europe (#3) and globally (#10) 0 1000 2000 3000 4000 United Rentals Aggreko Ashtead Group Algeco Scotsman Herz Equipment Rental Aktio Corp Loxam Coates Hire Cramo Ramirent Source: IRN June 2014 Interim Report January–June 2014 l 29 July 2014
  52. 52. © 2014 Ramirent 52 We continue to pursue our growth strategy in 2014 The five components of Ramirent's growth strategy: 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 Interim Report January–June 2014 l 29 July 2014
  53. 53. © 2014 Ramirent 53 Room for rental penetration to further increase in the Nordic countries Equipment rental penetration (%) 3.4% 2.0% 1.5%1) 1.7% Rental penetration (%)* Sweden Norway Finland Denmark Source: European Rental Association 2013; Rental Turnover / Total construction output 1) Source: VTT 2013 HIGHMEDIUMLOW Average penetration in Europe: 1.6% Interim Report January–June 2014 l 29 July 2014
  54. 54. © 2014 Ramirent 54 Ramirent has seen significant growth through outsourcing and acquisitions Outsourcing deal in Finland Acquisition of Finnish weather protection rental company Aquisition of Czech rental business Acquisition of Czech rental business Acquisition of Swedish rental company Acquisition of Danish rental business Acquisition of module rental company in Norway Outsourcing of Mt Hojgaard's Danish scaffolding division Acquisition of Swedish rental company Acquisition of Swedish rental company Outsourcing deal in Norway Joint venture in Russia and Ukraine with Cramo 2011 - 2012 2013 Outsourcing deal in Finland Divestment of operations in Hungary Formworks partnership with Doka in Finland  Extending geography to “white spots”  Complimentary product ranges or related services  Strengthening links to new customer segments  Targets mid-size companies mainly  Outsourcing of customer’s in-house fleets Criteria Proven track record of accretive acquisitions made at attractive multiples tied to earn-outs Outsourcing deal in Denmark Interim Report January–June 2014 l 29 July 2014 2014 Acquisition of safety solutions specialist company in Sweden Acquisition of telehandler business in Finland DCC (Dry Construction Concept) business in Sweden, Denmark and Finland Outsourcing deal in Finland Joint Venture* with Zeppelin Rental in Fehmarnbelt tunnel construction project in Germany and Denmark *Subject to relevant authorities approval
  55. 55. © 2014 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% by the end of 2016 Net debt/ EBITDA target of below 1.6x (at y/e) Capital Expenditure ROE target of 18% over the cycle Dividend pay- out ratio of at least 40% of net profit Interim Report January–June 2014 l 29 July 2014
  56. 56. © 2014 Ramirent 56 Customer service level Total costs Non- available fleet Capital efficiency Optimising fleet maintenance strategy Resourcing and maintenance & repair locations Optimising workshop processes Balanced fleet age structure Fleet management activities Efficiency utilisation* (%) R3 months Total Fleet Yield** (%) R3 months ∗) 𝐸𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦 𝑢𝑡𝑖𝑙𝑖𝑠𝑎𝑡𝑖𝑜𝑛 = 𝐴𝑐𝑞𝑢𝑖𝑠𝑖𝑡𝑖𝑜𝑛 𝑣𝑎𝑙𝑢𝑒 𝑜𝑓 𝑟𝑒𝑛𝑡𝑒𝑑 𝑓𝑙𝑒𝑒𝑡 𝐴𝑐𝑞𝑢𝑖𝑠𝑖𝑡𝑖𝑜𝑛 𝑣𝑎𝑙𝑢𝑒 𝑜𝑓 𝑡𝑜𝑡𝑎𝑙 𝑓𝑙𝑒𝑒𝑡 ∗ 100 % ∗∗) 𝑇𝑜𝑡𝑎𝑙 𝐹𝑙𝑒𝑒𝑡 𝑌𝑖𝑒𝑙𝑑 = 𝑅𝑒𝑛𝑡𝑎𝑙 𝑖𝑛𝑐𝑜𝑚𝑒 ∗ 100 % 𝐴𝑐𝑞𝑢𝑖𝑠𝑖𝑡𝑖𝑜𝑛 𝑣𝑎𝑙𝑢𝑒 𝑜𝑓 𝑡𝑜𝑡𝑎𝑙 𝑓𝑙𝑒𝑒𝑡 Goals KPIs Efficient logistics Fleet management potential realised at different levels Interim Report January–June 2014 l 29 July 2014
  57. 57. © 2014 Ramirent 57 Share price development Year-to-date 8.22 July 25, 2014 Interim Report January–June 2014 l 29 July 2014 Ramirent Plc (RMR1V) 4 5 6 7 8 9 10 11 2014-01-02 2014-02-02 2014-03-02 2014-04-02 2014-05-02 2014-06-02 2014-07-02 RMR1V EUR
  58. 58. © 2014 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% by the end of 2016 How will we deliver on our financial targets and create shareholder value? Company highlights Stated objectives Interim Report January–June 2014 l 29 July 2014
  59. 59. © 2014 Ramirent© 2014 Ramirent 59 Group performance Segment review Market outlook Key figures Financial position Company overview Appendix
  60. 60. © 2014 Ramirent 60 Consolidated statement of income Interim Report January–June 2014 l 29 July 2014 CONSOLIDATED STATEMENT OF INCOME 4–6/14 4–6/13 1–6/14 1–6/13 1–12/13 (EUR 1,000) Rental income 98,146 104,463 184,870 203,369 420,895 Ancillary income 47,886 48,748 93,178 98,356 198,040 Sales of equipment 5,755 7,593 11,276 11,897 28,317 NET SALES 151,786 160,803 289,324 313,623 647,252 Other operating income 804 521 1,153 11,696 12,732 Materials and services −51,563 −50,230 −96,420 −100,188 −213,169 Employee benefit expenses −37,468 −39,313 −74,597 −81,188 −156,791 Other operating expenses −21,178 −22,201 −44,971 −46,177 −95,660 Share of profit in associates and joint ventures −152 −817 −582 −925 688 Depreciation, amortisation and impairment charges −28,009 −27,791 −54,312 −57,863 −112,768 EBIT 14,219 20,973 19,595 38,978 82,284 Financial income 2,076 5,582 4,171 9,824 15,639 Financial expenses −7,148 −11,307 −11,399 −18,355 −34,055 Total financial income and expenses −5,072 −5,725 −7,229 −8,531 −18,415 EBT 9,147 15,248 12,367 30,447 63,869 Income taxes −2,145 −2,951 −2,805 −7,131 −9,839 PROFIT FOR THE PERIOD 7,002 12,297 9,562 23,316 54,030 Profit for the period attributable to: Owners of the parent company 7,147 12,297 9,707 23,316 54,030 Non-controlling interest −145 − −145 − − 7,002 12,297 9,562 23,316 54,030 Earnings per share (EPS) on parent company shareholders share of profit Basic, EUR 0.07 0.11 0.09 0.22 0.50 Diluted, EUR 0.07 0.11 0.09 0.22 0.50
  61. 61. © 2014 Ramirent 61 Consolidated statement of financial position CONSOLIDATED STATEMENT OF FINANCIAL POSITION 31/3/2014 31/3/2013 31/12/2013 (EUR 1,000) ASSETS NON–CURRENT ASSETS Goodwill 124,690 131,247 124,825 Other intangible assets 38,108 40,311 38,427 Property, plant and equipment 427,841 453,921 432,232 Investments in associates and joint ventures 15,003 22,425 18,524 Non–current loan receivables 20,261 20,250 20,261 Available–for–sale investments 519 412 517 Deferred tax assets 815 1,856 647 TOTAL NON–CURRENT ASSETS 627,236 670,422 635,432 Interim Report January–June 2014 l 29 July 2014 CONSOLIDATED STATEMENT OF FINANCIAL POSITION 30/6/2014 30/6/2013 31/12/2013 (EUR 1,000) ASSETS NON–CURRENT ASSETS Goodwill 140,529 126,719 124,825 Other intangible assets 45,745 39,254 38,427 Property, plant and equipment 438,805 435,457 432,232 Investments in associates and joint ventures 16,314 21,351 18,524 Non–current loan receivables 19,261 20,261 20,261 Available–for–sale investments 147 412 517 Deferred tax assets 677 1,824 647 TOTAL NON–CURRENT ASSETS 661,477 645,278 635,432 CURRENT ASSETS Inventories 13,247 14,765 11,494 Trade and other receivables 115,576 127,316 109,207 Current tax assets 3,026 1,343 1,495 Cash and cash equivalents 12,356 3,093 1,849 TOTAL CURRENT ASSETS 144,205 146,516 124,045 Assets held for sale − 6,702 − TOTAL ASSETS 805,682 798,497 759,477
  62. 62. © 2014 Ramirent 62 CONSOLIDATED STATEMENT OF FINANCIAL POSITION 30/6/2014 30/6/2013 31/12/2013 Consolidated statement of financial position (continued) Interim Report January–June 2014 l 29 July 2014 (EUR 1,000) EQUITY AND LIABILITIES EQUITY Share capital 25,000 25,000 25,000 Revaluation fund −1,559 −3,315 −1,502 Invested unrestricted equity fund 113,767 113,568 113,568 Retained earnings from previous years 176,707 185,429 179,882 Profit for the period 9,707 23,316 54,030 Equity attributable to the parent company shareholders 323,622 343,997 370,978 Non-controlling interest 1,103 − − TOTAL EQUITY 324,725 343,997 370,978 NON–CURRENT LIABILITIES Deferred tax liabilities 53,928 59,657 54,286 Pension obligations 14,031 14,094 13,923 Non–current provisions 1,189 909 1,198 Non–current interest–bearing liabilities 203,907 245,948 174,981 Other non–current liabilities 24,355 5,588 − TOTAL NON–CURRENT LIABILITIES 297,412 326,196 244,388 CURRENT LIABILITIES Trade payables and other liabilities 99,988 97,400 104,369 Current provisions 447 166 664 Current tax liabilities 1,290 8,399 5,278 Current interest–bearing liabilities 81,820 21,339 33,800 TOTAL CURRENT LIABILITIES 183,546 127,304 144,111 Liabilities classified as held for sale − 999 − TOTAL LIABILITIES 480,957 454,499 388,499 TOTAL EQUITY AND LIABILITIES 805,682 798,497 759,477
  63. 63. © 2014 Ramirent 63 Key financial figures Interim Report January–June 2014 l 29 July 2014 KEY FINANCIAL FIGURES 4–6/14 4–6/13 1–6/14 1–6/13 1–12/13 (MEUR) Net sales, EUR million 151.8 160.8 289.3 313.6 647.3 Change in net sales, % −5.6% −5.3% −7.7% −6.1% −9.4% EBITDA, EUR million 42.2 48.8 73.9 96.8 195.1 % of net sales 27.8% 30.3% 25.5% 30.9% 30.1% EBITA, EUR million 16.2 22.7 23.3 45.3 92.1 % net sales 10.7% 14.1% 8.0% 14.4% 14.2% EBIT, EUR million 14.2 21.0 19.6 39.0 82.3 % of net sales 9.4% 13.0% 6.8% 12.4% 12.7% EBT, EUR million 9.1 15.2 12.4 30.4 63.9 % of net sales 6.0% 9.5% 4.3% 9.7% 9.9% Profit for the period attributable to the owners of the parent company, EUR million 7.1 12.3 9.7 23.3 54.0 % of net sales 4.7% 7.6% 3.4% 7.4% 8.3% Gross capital expenditure, EUR million 78.3 30.0 101.8 62.4 125.8 % of net sales 51.6 % 18.7% 35.2% 19.9% 19.4% Invested capital, EUR million, end of period 610.5 611.3 579.8 Return on invested capital (ROI), %1) 11.9% 19.2% 16.5% Return on equity (ROE), %1) 12.1% 19.3% 14.7% Interest–bearing debt, EUR million 285.7 267.3 208.8 Net debt, EUR million 273.4 264.2 206.9 Net debt to EBITDA ratio1) 1.6x 1.2x 1.1x Gearing, % 84.2% 76.8% 55.8% Equity ratio, % 40.3% 43.1% 48.9% Personnel, average during reporting period2) 2,553 2,826 2,737 Personnel, at end of reporting period2) 2,651 2,781 2,589 1) The figures are calculated on a rolling twelve month basis 2) As of first quarter 2014, reporting of number of personnel was changed to FTE (full-time equivalent) which indicates the number of employees calculated as full time workload for each person employed and actually present in the company. Comparative information has been changed accordingly.
  64. 64. © 2014 Ramirent 64 Consolidated cash flow statement Interim Report January–June 2014 l 29 July 2014 CONSOLIDATED CASH FLOW STATEMENT 4–6/14 4–6/13 1–6/14 1–6/13 1–12/13 (EUR 1,000) Cash flow from operating activities EBT 9,147 15,248 12,367 30,447 63,869 Adjustments Depreciation, amortisation and impairment charges 28,009 27,791 54,312 57,863 112,768 Adjustment for proceeds from sale of used rental equipment 8,258 4,520 10,870 6,399 8,975 Financial income and expenses 5,072 5,725 7,229 8,531 18,415 Adjustment for proceeds from disposals of subsidiaries − − − −10,128 −15,609 Other adjustments -17,610 2,941 -13,521 −1,840 4,735 Cash flow from operating activities before change in working capital 32,876 56,223 71,257 91,272 193,153 Change in working capital Change in trade and other receivables −8,498 −18,112 −6,469 1,024 18,994 Change in inventories −893 −232 −1,537 −380 3,114 Change in non–interest–bearing liabilities 37,664 −1,654 13,472 −4,039 −5,724 Cash flow from operating activities before interest and taxes 61,149 36,226 76,722 87,877 209,537 Interest paid −7,688 −2,427 −7,845 −5,050 −5,270 Interest received 703 828 703 1,307 1,047 Income tax paid −2,601 −7,144 −6,660 −14,587 −23,068 Net cash generated from operating activities 51,562 27,483 62,920 69,547 182,245
  65. 65. © 2014 Ramirent 65 Consolidated cash flow statement (continued) Interim Report January–June 2014 l 29 July 2014 CONSOLIDATED CASH FLOW STATEMENT 4–6/14 4–6/13 1–6/14 1–6/13 1–12/13 Cash flow from investing activities Acquisition of businesses and subsidiaries, net of cash −25,670 − −25,670 − −2,832 Investment in tangible non–current asset (rental machinery) −47,301 −30,649 −67,959 −58,411 −110,115 Investment in other tangible non–current assets −554 −345 −639 −1,575 −2,825 Investment in intangible non–current assets −2,433 −1,776 −3,753 −3,533 −6,503 Proceeds from sale of tangible and intangible non–current assets (excluding used rental equipment) 1,850 69 7,482 123 360 Proceeds from sales of other investments − − − 9,200 14,681 Loan receivables, increase, decrease and other changes 1,000 −11 1,000 −1,577 −1,577 Net cash flow from investing activities −73,108 −32,712 −89,540 −55,773 −108,812 Cash flow from financing activities Paid dividends −39,858 −36,618 −39,858 −36,618 −36,618 Borrowings and repayments of current debt (net) 76,220 −13,610 82,230 −28,173 −49,771 Borrowings of non–current debt − 46 − 99,076 99,031 Repayments of non–current debt −5,245 −33,934 −5,245 −46,304 −85,565 Net cash flow from financing activities 31,117 −84,116 37,127 −12,019 −72,923 Net change in cash and cash equivalents during the financial year 9,572 −89,344 10,507 1,755 511 Cash at the beginning of the period 2,784 92,437 1,849 1,338 1,338 Translation differences − − − − − Change in cash 9,572 −89,344 10,507 1,755 511 Cash at the end of the period 12,356 3,093 12,356 3,093 1,849
  66. 66. © 2014 Ramirent 66 Net sales Interim Report January–June 2014 l 29 July 2014 NET SALES 4–6/14 4–6/13 1–6/14 1–6/13 1–12/13 (MEUR) FINLAND - Net sales (external) 38.7 36.2 70.2 71.2 150.9 - Inter–segment sales 0.3 0.2 0.5 0.3 1.0 SWEDEN - Net sales (external) 48.5 53.2 93.8 103.1 206.7 - Inter–segment sales 0.2 0.0 0.2 0.3 0.6 NORWAY - Net sales (external) 33.9 38.8 67.3 76.9 153.6 - Inter–segment sales −0.1 − 0.5 − 0.0 DENMARK - Net sales (external) 9.1 11.2 18.7 20.3 43.7 - Inter–segment sales − − − − 0.2 EUROPE EAST - Net sales (external) 8.2 7.6 14.4 17.3 35.4 - Inter–segment sales 0.0 0.0 0.0 0.0 0.1 EUROPE CENTRAL - Net sales (external) 13.3 13.9 24.9 24.9 56.9 - Inter–segment sales 0.0 0.2 0.3 0.2 0.4 Elimination of sales between segments −0.4 −0.4 −1.5 −0.8 −2.3 NET SALES, TOTAL 151.8 160.8 289.3 313.6 647.3
  67. 67. © 2014 Ramirent 67 EBITA Interim Report January–June 2014 l 29 July 2014 EBITA 4–6/14 4–6/13 1–6/14 1–6/13 1–12/13 (MEUR) FINLAND 6.0 6.0 8.9 9.4 25.7 % of net sales 15.4% 16.6% 12.7% 13.2% 16.9% SWEDEN 6.7 9.6 10.9 16.9 36.6 % of net sales 13.8% 18.0% 11.6% 16.4% 17.6% NORWAY 4.2 7.9 6.8 12.9 22.0 % of net sales 12.5% 20.4% 10.0% 16.8% 14.3% DENMARK −1.7 −0.0 −2.9 −1.5 −4.3 % of net sales −19.1% −0.4% −15.3% −7.3% −9.7% EUROPE EAST 1.0 0.1 0.9 11.1 17.3 % of net sales 12.1% 0.8% 6.1% 64.1% 48.8% EUROPE CENTRAL 0.8 0.4 −0.4 −2.0 -0.7 % of net sales 5.8% 2.7% −1.7% −7.8% -1.2% Net items not allocated to segments −0.8 −1.2 −1.0 −1.6 -4.6 GROUP EBITA 16.2 22.7 23.3 45.3 92.1 % of net sales 10.7% 14.1% 8.0% 14.4% 14.2%
  68. 68. © 2014 Ramirent 68 Net sales in H1/2013 included business in Russia, Ukraine and Hungary Net sales: Group, Russia & Ukraine, Hungary EBITA: Group, Russia & Ukraine, Hungary Net sales, MEUR Q1/2013 Q2/2013 Q3/2013 Q4/2013 Q1/2014 Q2/2014 Group as reported 152.8 160.8 166.2 167.5 137.5 151.8 Russia & Ukraine 4.6 Hungary 1.5 1.7 1.6 Group (excl. Russia, Ukraine & Hungary) 146.7 159.1 164.6 167.5 137.5 151.8 EBITA, MEUR Q1/2013 Q2/2013 Q3/2013 Q4/2013 Q1/2014 Q2/2014 Group as reported 22.6 22.7 25.9 20.9 7.1 16.2 Russia & Ukraine (incl. capital gain) 11.4 Hungary (incl. capital loss) -0.2 0.1 -1.3 Group (excl. Russia, Ukraine & Hungary) 11.4 22.6 27.3 20.9 7.1 16.2 Interim Report January–June 2014 l 29 July 2014
  69. 69. 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

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