Ramirent Q1 2011

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Ramirent Interim Report Q1/2011 Presentation on 10 May 2011

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Ramirent Q1 2011

  1. 1. Interim reportJanuary-March201110 May 2011President and CEO Magnus RosénCFO Jonas Söderkvist
  2. 2. Q1 2011: Demand improved in all segments Net sales up 20.5% MEUR 134.4 (111.5) Up 15.1 % at comparable exchange rates EBITDA MEUR 27.6 (17.5) EBITDA-margin 20.6% (15.7%) EBIT MEUR 2.7 (-5.6) EBIT-margin 2.0% (-5.0%) Gross capex MEUR 31.9 (12.5) Cash flow after investments MEUR -10.7 (-4.0) Net debt MEUR 190.6 (211.7) Gearing 60.2% (68.4%) 2
  3. 3. Nordic construction order book increased in Q1 2011 Order book Nordics (BEUR, real exchange rates)*BEUR151050 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2007 2008 2009 2010 2011 Skanska NCC YIT Veidekke Lemminkäinen The order books grew with 33% y-o-y in Q1 2011, but the order intake of large construction companies decreased. 3 * Order books for Swe, Fin, Nor, Den
  4. 4. Construction market outlook improved inSweden and Finland Construction outlook 2011Finland*: Construction is expected to BEURgrow by 4% in 2011 400 350 323 339Sweden**: Construction is expected to 321grow by 7% in 2011 300 250Norway: Construction is expected to growby 3% in 2011 200 150Denmark: Construction is expected togrow by 3% in 2011 100 50Europe Central: Construction is expectedto grow by 13% in 2011 in Poland, by 5% 0in Hungary but decrease by 3% in 2009 2010F 2011FSlovakia and by 3% in Czech Republic Finland* Sweden**Europe East: Construction is expected to Norway Denmarkincrease by 10% in 2011 in Estonia, by Europe Central Europe East***4% in Latvia, by 5% in Lithuania and by3-7% in Russia. Source: Euroconstruct as per December 2010 *VTT Expert Service Oy as per May 2011, **Swedish Construction Federation 2/2011, 4 ***Excluding Ukraine
  5. 5. Ramirent 2011 outlook reiteratedAs a result of increasedconstruction activity andimproving price levels,net sales are expected toincrease in 2011, and theresult before taxes isexpected to improvecompared to 2010. 5
  6. 6. Latest outsourcing deals and acquisitions E. Pihl & Søn A.S. outsourced Destia outsourced Ramirent acquired light equipment and hoist modules, light machinery the rental business operations to Ramirent Denmark and related operations to of the Czech and signed a five-year rental Ramirent Finland and machinery agreement signed a five-year rental company RENT MB agreementJanuary February March April May 2011 2011 2011 2011 2011 Ramirent acquired Ramirent acquired the the business assets equipment rental business of Danish machinery of Czech-based Stavebnírental company Jydsk Doprava a Mechanizace Materiel Udlejning 6
  7. 7. Our network grew further Number of outlets all time high at 382 (353) Local head office Outlet Re-renting agents 7
  8. 8. Key strategic objectives:In Q1 2011 new inroads made into new customer sectors andDynamic Rental SolutionsTM development continued Sustainable profitable growth  Accelerate growth with acquisitions and outsourcing deals  Evaluate entry into new markets  Strengthen local offerings and develop solution concepts Operational excellence  Develop a common “Ramirent platform”  Develop group wide IT platform and realize synergies  Maintain strong focus on cost efficiency Balanced risk level  Diversified portfolios of customers, products and markets  Continuous employee competence development  A strong financial position 8
  9. 9. SEGMENT REVIEW 9
  10. 10. Finland Highlights Historic financial performance MEURMain growth driver was 45 41 20 %residential construction 38 40 36 35 34 15 % 35 31 30Renovation activity was lower as 29 28 30government subsidies decreased 25 10 % 20 5%Profitability is still burdened by 15lower activity levels in 10 0%shipyards, low price levels and 5low utilisation in certain product 0 -5 %groups, in particular scaffolding Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2009 2010 2011Destia outsourced modules, Net sales EBIT-%some light machinery andrelated operations to Ramirent Q1 Fulland signed a five-year rental Yearagreement Finland 2011 2010 Change Change 2010 (EUR) (Local)Cooperation agreements signed Net sales, MEUR 30.2 28.1 7.7% 7.7% 136.9within new customer sectors,the Central Union of Agricultural EBIT, MEUR 1.3 -0.2 705.1% 13.7Producers and Forest Owners EBIT-margin 4.4% -0.8% 10.0%and with VR Track, Finland’slargest rail constructor Employees 566 646 -12.4% 603 Outlets 84 82 2.4% 84 10
  11. 11. Sweden Highlights Historic financial performance MEUREspecially civil engineering, 50 45 25 %public sector demand and 41housing boosted growth 40 36 20 % 35 32 33 31 32 29Geographically, growth was 30 15 %driven by Stockholm and the 20 10 %surrounding areas 10 5%Central and southern regions ofthe country also developed 0 0%positively Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2009 2010 2011Profitability improved based on Net sales EBIT-%higher capacity utilisation , butwas still burdened by low price Q1 Fulllevels Year Sweden 2011 2010 Change Change 2010 (EUR) (Local) Net sales, 41.3 29.4 40.5% 25.1% 145.2 MEUR EBIT, MEUR 6.1 2.6 139.0% 23.3 EBIT-margin 14.9% 8.8% 16.1% Employees 552 540 2.2% 546 Outlets 74 67 10.4% 73 11
  12. 12. Norway Highlights Historic financial performance MEUR 35 31 33 16 %The growth driver was the 29 29 28 14 % 30 27 28recovery in construction activity 25 27 12 %especially in the western and 25 10 %northern parts of Norway 20 8% 6% 15 4%Profitability was still burdened 2% 10by low price levels 0% 5 -2 %New managing director started 0 -4 %in 1 February 2011 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2009 2010 2011 Net sales EBIT-% Q1 Full Year Norway 2011 2010 Change Change 2010 (EUR) (Local) Net sales, MEUR 32.6 28.4 15.0% 11.0% 114.4 EBIT, MEUR 0.4 -0.4 184.9% 2.3 EBIT-margin 1.2% -1.6% 2.0% Employees 514 537 -4.3% 503 Outlets 41 39 5.1% 42 12
  13. 13. Denmark Highlights Historic financial performance MEURMarket conditions have improved 14 10 %slightly and the high level of 12price competition has decreased 12 11 11 0% 10 9 9 10 10 8 8 -10 %Profitability was burdened by 8increased costs for intensified -20 % 6sales and marketing activities in -30 %advance of the summer season 4 2 -40 %Pihl&Søn A.S. outsourced its 0 -50 %light equipment and hoists Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1operations to Ramirent and 2009 2010 2011signed a 5-year rental Net sales EBIT-%agreement. The transfer of theacquired assets took place on 1January 2011 Q1 Full YearRamirent acquired the business Denmark 2011 2010 Change Change 2010 (EUR) (Local)assets of the machinery rentalcompany Jydsk Materiel Net sales, MEUR 8.4 8.1 3.2% 3.4% 35.6Udlejning located in West EBIT, MEUR -1.3 -0.6 -97.5% -2.2Jutland. For Ramirent Denmark,the acquisition contributes with EBIT-margin -15.0% -7.8% -6.2%approximately EUR 1.5 million in Employees 150 145 3.4% 160annual sales. Outlets 21 21 - 20 13
  14. 14. Europe East Highlights Historic financial performance MEURGrowth drivers were mainly the 20 19 20 %revival of infrastructuralconstruction in Russia 10 % 15 13 12 12 0% 11Energy-related investment 9 10 9projects grew in particular in 10 -10 % 8the Baltics and Ukraine -20 % 5 -30 %Business volumes improvedalso in the Baltic States, 0 -40 %especially in Lithuania and also Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1in Ukraine 2009 2010 2011 Net sales EBIT-%Ukraine network expanded byone new outlet, totalling 7 Q1 Fulloutlets at the end of the quarter Year Europe East 2011 2010 Change Change 2010Profitability was still burdened (EUR) (Local)by low price levels and low Net sales, MEUR 9.4 7.5 25.4% 22.8% 42.7business volumes due to tough EBIT, MEUR -1.7 -2.4 31.1% -3.5winter conditions EBIT-margin -17.7% -32.2% -8.3% Employees 407 367 10.9% 392 Outlets 48 45 6.7% 48 14
  15. 15. Europe Central Highlights Historic financial performance MEURThe main growth drivers were 25 15 %the recovery in construction and 20 10 %industrial activity in Poland and 20 18 19Hungary 16 16 16 5% 14 14 0% 15 12Profitability was burdened by -5 % 10lower price levels and business -10 %volumes especially in Czech 5 -15 %Republic and Slovakia -20 % 0 -25 %The Czech network was Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1expanded with 3 new outlets, 2009 2010 2011totalling 21 outlets at the end of Net sales EBIT-%quarter Q1 FullRamirent exercised its option to Yearacquire the remaining 40% Europe Central 2011 2010 Change Change 2010stake in the Slovak-based (EUR) (Local)company OTS Bratislava it Net sales, MEUR 14.4 12.1 19.0% 18.5% 66.6acquired a majority stake in EBIT, MEUR -1.2 -2.6 55.4% 0.82008 EBIT-margin -8.2% -21.8% 1.2% Employees 835 797 4.8% 824 Outlets 114 99 15.2% 111 15
  16. 16. FINANCIAL REVIEW 16
  17. 17. Financial performance developed positively in Q1 Net Sales (MEUR) EBITDA (MEUR) EBIT (MEUR) Net sales Y-o-y change-% EBITDA EBITDA-% EBIT EBIT-%160 150 30 % 45 42 35 % 20 14 % 141 17 134 36 37 37140 122 125 130 126 129 20 % 40 30 % 14 12 % 112 15 12 10 %120 35 30 31 11 10 % 28 25 % 30 26 10 8%100 7 7 0% 25 20 % 6% 80 18 -10 % 20 15 % 5 3 4% 60 2% 15 40 -20 % 10 % 0 10 0% 20 -30 % 5 5% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 -2 % -5 2009 -4 2010 2011 -4 % 0 -40 % 0 0% -6 -10 -6 % Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2009 2010 2011 2009 2010 2011 Cash flow (MEUR) Net debt (MEUR) Gross Capex (MEUR) Cash flow after investments Net debt Gearing-% Gross Capex Share of net sales-%30 28 300 281 120 % 35 32 25 % 24 25525 22 20 250 230 100 % 30 18 207 212 209 197 20 %20 191 13 14 25 2215 200 177 80 % 20 18 15 %10 150 60 % 15 13 5 10 10 % 100 40 % 8 0 10 5 5% -5 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 50 20 % 5 3 3 2009 -4 2010 2011-10 0 0% 0 0%-15 -11 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2009 2010 2011 2009 2010 2011 17
  18. 18. Recovery of construction market activity increased net sales by 20.5% in Q1 2011 Change in net sales YoY, %30 % 19 % 20 % 19 % 19 %20 % 13 % 9%10 % 3% 0% -4 %-10 % -9 %-20 % -25 %-30 % -27 % -31 % -31 %-40 % Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2008 2009 2010 2011 18
  19. 19. Net sales grew in all segments both in euros and in comparable exchange rates Change in Q1 net sales YoY, %45 % 41 % 40 % 41 %40 %35 %30 % 25 % 25 % 23 %25 % 22 % 20 % 19 % 19 %20 % 15 % 15 % 15 %15 % 11 %10 % 8% 8% 7% 4% 3%5% 3%0% Group Finland Sweden Norway Denmark East Central EUR Comparable exchange rates Adjusted for inter-segment sales (in EUR) Group January - March 2011 Net sales increased by 20.5% (15.1% at comparable exchange rates) 19
  20. 20. Capital turnover is continuously increasing Invested capital by quarterMEUR800 160 % 708 707700 654 140 % 586 565600 562 581 578 552 544 120 % 494 515 524 508 509 496 508500 100 %400 80 %300 60 %200 40 %100 20 % 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2007 2008 2009 2010 2011 Invested capital Net sales/Invested capital Rolling 12 month basis Capital turnover amounted to 107% end of March 2011 (90% end of March 2010) 20
  21. 21. Gross margin has improved compared toprevious year but is still on unsatisfactory level Gross margin by quarter72 % 71 % 71 % 71 % 71 %71 % 70 % 70 %70 % 69 %69 % 68 % 68 % 68 %68 % 67 % 67 % 67 %67 % 66 %66 % 65 % 65 %65 %64 %63 %62 % Q1 Q2 Q3 Q4 FY Gross margin 2008 Gross margin 2009 Gross margin 2010 Gross margin 2011Gross margin is impacted by Price pressure Increased equipment transportation and use of external services 21
  22. 22. Recovering demand puts pressure onpersonnel, but total workforce unchanged Number of employees by segment900 835 797800700 646600 566 552 537 540 514500 407400 367300200 145 150100 0 Finland Sweden Norway Denmark Europe East Europe Central Personnel 31/3/10 Personnel 31/3/11 At the end of March 2011, the Group’s workforce amounted to 3,045 (3,047) persons At the end of December 2010, the Group’s workforce amounted to 3,048 (3,021) persons 22
  23. 23. Record high number of outlets in the Group Number of outlets per segment450 382400 359350 114 99300250 41 21 48 57 3718 52200150 74100 50 96 84 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2008 2009 2010 2011 Finland Sweden Norway Denmark Europe East Europe Central 23
  24. 24. Fixed cost development stable Fixed costs by quarterMEUR80 7370 63 63 57 57 5660 29 56 54 52 5250 24 27 22 23 22 23 22 19 22403020 44 35 33 33 38 37 30 33 33 32100 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2008 2009 2010 2011 Employee benefit expenses Other operating expenses Investments in common platform and high facility cost due to cold winter have kept the fixed cost on relatively high level. 24
  25. 25. Q1 EBIT margin increased to 2.0%, but is still burdened by low price and utilisation levels EBIT margin by quarter25 % 19.6 %20 % 18.2 % 18.4 %15 % 11.8 % 10.8 % 9.0 %10 % 7.5 % 5.9 % 5.8 % 5% 2.0 % 0% -5 % -2.9 % -5.0 %-10 % -11.4 %-15 % Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2008 2009 2010 2011 January-March 2011 EBIT-margin was 2.0% (-5.0%) 25
  26. 26. Q1 EBIT margin improved in all segments except in Denmark EBIT-margin by segments20 % 14,9 % 8,8 %10 % 4,4 % 2,0 % 1,2 % 0% -0,8 % -1,6 % -5,0 %-10 % -7,8 % -8,2 % -15,0 %-20 % -17,7 % -21,8 %-30 % -32,2 %-40 % Group Finland Sweden Norway Denmark East Central Q1 2010 Q1 2011 26
  27. 27. Q1 fleet investment level rose to EUR 29.6 million Purchased and sold equipment by quarterMEUR35 29,63025 18,920 17,415 8,910 7,5 6,7 6,5 3,7 4,4 5,0 4,7 5,0 3,7 4,4 3,75 2,0 2,1 3,30 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2009 2010 2011 Purchased equipment Sold equipment In January-March 2011, gross capital expenditure was EUR 31.9 (12.5) million of which EUR 29.6 (7.5) million in rental fleet The value of sold rental equipment was EUR 3.7 (5.0) million. 27
  28. 28. Capital expenditure increased in all segments to meet the increasing demand Capital Expenditure by segmentsMEUR35 3230252015 13 1310 8 4 5 4 5 4 3 4 1 1 1 0 0 Group Finland Sweden Norway Denmark East Central Q1 2010 Q1 2011 28
  29. 29. Working capital is at 5% of net sales Working capital by quarterMEUR120 10 % 8% 80 6% 88 90 90 99 97 95 86 80 83 40 4% 2% 16 15 15 15 15 14 14 16 16 0 0% -2 % -66 -68 -70 -67 -69 -40 -86 -86 -89 -82 -4 % -80 -6 % -8 %-120 -10 % Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2009 2010 2011 Inventories Trade and other receivables Trade payables and other liabilities Working capital/Net sales Rolling 12 month basis 29
  30. 30. Cash flow after investments EUR -10.7 milliondue to increased fleet investments and acquisitions Cash flow versus change in net debtMEUR907050 8230 56 6710 25 28 22 24 18 20 5 13 14 14 -11 -11-10 -30 -23 -2 -21 -22 -26 -25 4--4 -12-30 -55 -59-50-70 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2008 2009 2010 2011 Cash flow after investments Change in net debt Share repurchase amounted to EUR 3.3 million in Q1 2011 30
  31. 31. Strong financial position with gearing at 60% Net debt and gearingMEUR400 113 % 120 % 106 % 108 %350 96 % 81 % 99 % 100 % 84 % 86 %300 69 % 74 % 70 % 68 % 68 % 71 % 80 %250 64 % 60 %200 56 % 60 %150 40 %100 20 %50 0 0% 2004 2005 2006 2007 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2008 2009 2010 2011 Net debt Gearing (%) Equity ratio rose to 47.5% (46.4%) Net debt amounted to EUR 190.6 (211.7) million On 31 March 2011 unused committed back-up loan facilities were EUR 177.2 million 31
  32. 32. Emerging stronger than before Ramirent is ready to capture the opportunities in its marketsBroadest range of equipment andDynamic Rental SolutionsTM3,000 dedicated problem solversWide network of outlets close to our customersStrong financial positionDeriving higher synergies through a uniform”Ramirent platform” across the organisationA more unified company and brand 32
  33. 33. MORE INFORMATIONwww.ramirent.comMagnus Rosén, CEO+358 20 750 2845magnus.rosen@ramirent.comJonas Söderkvist, CFO+358 20 750 3248jonas.soderkvist@ramirent.comFranciska Janzon, IR+358 20 750 2859franciska.janzon@ramirent.com 34
  34. 34. COMPANY OVERVIEW 35
  35. 35. Ramirent in briefLeading equipment rental company in Northern, Centraland Eastern Europe with net sales of EUR 531 million(2010)382 rental customer centers located in 13 countries andproviding 200 000 rental items3 048 employees serving 100 000 customersFounded in 1955 and headquartered in FinlandListed on NASDAQ OMX Helsinki since 1998 36
  36. 36. More than 50 years of experience as a supplier to the construction industry GreenfieldSteel Nail shop First move entry toRakennusmies outside Finland Enter Acquires Czech Republicfounded through JV in Lithuania Bautas in Moscow, Russia Norway The rental Acquires business is MBO by key Enter Altima in established personnel and Poland Sweden capital investors1955 1983 1988 1994 1995 1996 1997 1998 2000 2001 2002 2003 2004 2005 2006 2008 Acquired by Partek Enter Renamed Enter and renamed Latvia Ramirent Ukraine A-rakennusmies Plc Enter The third county Slovakia becomes Estonia with Listed on the Greenfield the expansion to Helsinki Stock entry to Tallinn Exchange Hungary 37
  37. 37. OUR VISION AND MISSIONVisionTo be the leading and mostprogressive equipment rentalsolutions company in Europe,setting the benchmark forindustry performance andcustomer serviceMissionWe simplify business throughDynamic Rental SolutionsTM 38
  38. 38. One of the leading equipment rental companies both in Europe (#3) and globally (#11) Largest rental companies Largest rental companies globally in Europe Turnover 2009 (MEUR) Turnover 2009 (MEUR) Loxam United Rentals Cramo* Aggreko Ashtead Group Ramirent RSC Equipment Rental Algeco… Algeco ScotsmanSpeedy Hire Hertz Equipment… Liebherr-… Loxam GAM Coates Hire Ltd Mediaco… Cramo* Harsco… Nishio Rent All Co Kiloutou Ramirent 0 200 400 600 800 1000 0 200 400 600 800 1000 *Cramo + Theisen PF Source: IRN June 2010 39
  39. 39. Nordic countries are our largest markets and construction is our largest customer sector Sales per segment Q1 2011 Sales per customer sector 2010 Households Europe Public sector 5% Central 5% 11 % Finland Construction Europe 22 % 76% East Industry 7% 14 %Denmark 6% Norway Sweden 24 % 30 % 40
  40. 40. Leading market positions in all our markets Finland 84 depots Sweden (25 franchises) 74 depots Market #1 (10 franchises) Employees Norway Market #2 41 depots Russia1 Europe Finland (4 franchises) 4 depots Central 566 Market #1 10 re-renting 835 agents Market #1 Baltic 39 depots Market #2 Total Denmark 3,045 Poland2 21 depots Sweden Market #1 40 depotsEurope 552 Market #1 Ukraine East 5 depots 407 Market #~4 Slovakia Czech Denmark 37 depots Norway 21 depots (17 franchises) 150 514 (7 franchises) Market #1 Market #~3 Hungary2 16 depots Market #1 1) St Petersburg + Moscow 2) Excl. Fomrworks business 41
  41. 41. Operating through six geographical segments Diversified customer base Rental Outlet Network Finland Sweden Norway Denmark E.East1) E.Central2) Fleet management Sourcing Finance IT 1) Europe East includes Russia, The Baltic States, Ukraine. 2) Europe Central includes Poland, Hungary, Czech Rep., Slovakia. 42
  42. 42. Offering is structured into eight core productgroups TOWER CRANESLIFTS HEAVY MACHINERY AND HOISTS SCAFFOLDING SAFE (SAFETY ANDMODULES FORMWORKS EQUIPM.) LIGHT MACHINERY POWER & HEATING 43
  43. 43. Impact on SimplifyingBroadest range of equipment and CustomerDynamic Rental SolutionsTM Business IncreasesRental Solution ConceptsRamirent offers a range of customer needs-driven & value-addingturnkey rental solution concepts, driving the problem-solvingapproach and the promise of Let’s solve it.Rental services • Insurance• Planning, design • Operators• Ramirent know-how • Fuel / gas refilling• Transportation • Facility management• Installation • Technical support• Maintenance • Site logistics coordinator• Inspections • Paperwork for authoritiesEquipment rental • Power & Heating• Lifts • SAFE• Modules• Heavy Machinery• Light Machinery• Tower Cranes & Hoists• Scaffolding 44
  44. 44. Dynamic Rental SolutionsTMis offered to a diverse customer base Product Outlet Network Customers groups  Construction  Lifts and hoists companies  Tower cranes  Industry  Heavy machinery  Public sector  Modules  Households  SAFE  Light machinery  Scaffolding  Power and heating Dynamic Rental SolutionsTM 45
  45. 45. The long-term growth drivers are still in placeLong-term growing industry Growth drivers are construction, industrial activity and rental penetration European market 20.2 BEUR (excl. operators) Top 50 companies comprising 38% of the market CEE construction markets on a low level compared to Nordics and Western EuropeIncreasing rental penetration European consolidation High potential CEENote: Finland company estimate opportunities construction markets Ramirent Cramo70 % Algeco Scotsman Speedy Hire Liebherr-Mietpartner GAM60 % Mediaco Lifting Harsco Infrastructur50 % Kiloutou Others40 %30 %20 %10 % 0% Europe FI DK SE UK avg. Inhabitants (million) Construction output (BEUR) 46
  46. 46. 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 % 47
  47. 47. Long-term EBIT and ROI development EBIT and ROI development35 %30 %25 % 23%20 % 18%15 %10 %5%0% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 EBIT margin ROI EBIT margin (average) ROI (average) 48
  48. 48. APPENDIX 49
  49. 49. CONSOLIDATED INCOME STATEMENT(EUR 1,000) 1-3/11 1-3/10 1-12/10Net sales 134 351 111 525 531 284Other operating income 342 299 1 616Materials and services -43 815 -38 690 -177 118Employee benefit expenses -36 629 -33 493 -136 214Depreciation and amortisation -24 933 -23 115 -97 716Other operating expenses -26 635 -22 117 -92 122EBIT 2 681 -5 591 29 731Financial income 2 116 6 101 13 780Financial expenses -4 954 -6 528 -22 658EBT -157 -6 019 20 853Income taxes 50 707 -6 212NET RESULT FOR THE PERIOD -108 -5 312 14 640Net result for the period attributable to:Owners of the parent company -108 -5 312 14 640Non-controlling interest - - -TOTAL -108 -5 312 14 640 Earnings per share (EPS), basic and diluted, EUR 0,00 -0,05 0,13 50
  50. 50. BALANCE SHEET – ASSETS (EUR 1,000) 31.3.2011 31.3.2010 31.12.2010NON-CURRENT ASSETSProperty, plant and equipment 432 136 453 074 427 248Goodwill 94 030 93 398 93 211Other intangible assets 10 565 7 047 10 348Available-for-sale investments 422 53 422Deferred tax assets 14 347 9 593 13 325NON-CURRENT ASSETS, TOTAL 551 500 563 164 544 555CURRENT ASSETSInventories 16 493 14 714 15 856Trade and other receivables 94 804 82 801 96 616Current tax assets 2 371 3 427 2 902Cash and cash equivalents 911 2 758 1 352CURRENT ASSETS, TOTAL 114 580 103 701 116 727Non-current assets held for sale - 370 -TOTAL ASSETS 666 080 667 234 661 282 51
  51. 51. BALANCE SHEET – EQUITY AND LIABILITIES (EUR 1,000) 31.3.2011 31.3.2010 31.12.2010EQUITYShare capital 25 000 25 000 25 000Revaluation fund -1 258 -3 207 -2 472Invested unrestricted equity fund 113 329 113 329 113 329Retained earnings 179 374 174 143 181 783Items recognised directly to equity on non-current assets held for sale - 62 -PARENT COMPANY SHAREHOLDERS’ EQUITY 316 445 309 327 317 640Non-controlling interests - - -EQUITY, TOTAL 316 445 309 327 317 640NON-CURRENT LIABILITIESDeferred tax liabilities 59 880 53 178 60 413Pension obligations 7 106 10 380 6 866Provisions 2 205 3 557 2 347Interest-bearing liabilities 131 408 197 728 137 384Other long-term liabilities 2 602 - 2 200NON-CURRENT LIABILITIES, TOTAL 203 200 264 844 209 209CURRENT LIABILITIESTrade payables and other liabilities 82 362 68 587 89 480Provisions 1 415 6 956 1 762Current tax liabilities 2 595 828 2 658Interest-bearing liabilities 60 063 16 692 40 533CURRENT LIABILITIES, TOTAL 146 435 93 063 134 433LIABILITIES, TOTAL 349 635 357 907 343 642TOTAL EQUITY AND LIABILITIES 666 080 667 234 661 282 52
  52. 52. KEY FIGURESMEUR 1-3/11 1-3/10 Change 1-12/10Net sales 134.4 111.5 20.5 % 531.3EBITDA 27.6 17.5 57.6 % 127.4EBITDA,% 20.6 % 15.7 % 24.0 %EBIT 2.7 -5.6 147.9 % 29.7EBIT, % 2.0 % -5.0 % 5.6 %ROI,% 9.3 % 5.8 % 8.6 %Invested capital, end of period 507.9 523.7 -3.0 % 495.6Net debt 190.6 211.7 -10.0 % 176.6Gearing, % 60.2 % 68.4 % 55.6 %Equity ratio,% 47.5 % 46.4 % 48.0 %Personnel, end of period 3 045 3 047 -0.1 % 3 048Gross capital expenditure 31.9 12.5 155.1 % 62.0Gross capital expenditure, % net sales 23.7 % 11.2 % 11.7 %Cash flow after investments -10.7 -4.0 -165.3 % 48.0Earnings per share, (diluted), EUR 0.00 -0.05 98.0 % 0.13Dividend per share, EUR 0.25 53
  53. 53. CONDENSED CASH FLOW STATEMENT MEUR 1-3/11 1-3/10 Change 1-12/10Cash flow from operating activities 27.3 9.8 178.2 % 104.2Cash flow from investing activities -38.1 -13.9 -174.5 % -56.2Cash flow from financing activitiesBorrowings / repayment of short-term debt 18.7 -7.4 352.8 % 0.6Borrowings / repayment of long-term debt -5.2 12.4 -141.6 % -29.8Acquisition of treasury shares -3.3 - n/a -2.9Dividends paid - - n/a -16.3Cash flow from financing activities 10.3 5.0 105.7 % -48.5Net change in cash and cash equivalents -0.4 1.0 -145.0 % -0.5Cash and cash equivalents at the beginning of theperiod 1.4 1.8 -24.9 % 1.8Translation difference on cash and cash equivalents - - 0.1Net change in cash and cash equivalents -0.4 1.0 -146.0 % -0.5Cash and cash equivalents at the end of the period 0.9 2.8 -67.0 % 1.4 54
  54. 54. SEGMENT INFORMATIONNet sales, MEUR 1-3/11 1-3/10 Change 1-12/10Finland, net sales (external) 29.2 27.9 4.4 % 135.2-Inter-segment sales 1.1 0.2 551.1 % 1.8Sweden, net sales (external) 41.0 29.3 40.0 % 144.5-Inter-segment sales 0.3 0.1 201.4 % 0.7Norway, net sales (external) 32.4 28.3 14.7 % 113.7-Inter-segment sales 0.2 0.1 192.8 % 0.7Denmark, net sales (external) 8.2 7.7 6.9 % 32.9-Inter-segment sales 0.2 0.5 -57.1 % 2.7Europe East, net sales (external) 9.3 6.6 40.6 % 39.5-Inter-segment sales 0.1 0.9 -89.3 % 3.2Europe Central, net sales (external) 14.3 11.8 21.5 % 65.4-Inter-segment sales 0.1 0.3 -75.6 % 1.2Elimination of sales between segments -1.9 -2.0 3.3 % -10.2Net sales, total 134.4 111.5 20.5 % 531.3 55
  55. 55. EBIT BY SEGMENTEBIT (EUR million) 1-3/11 1-3/10 Change 1-12/10Finland 1.3 -0.2 705.1 % 13.7% of net sales 4.4 % -0.8 % 10.0%Sweden 6.1 2.6 139.0 % 23.3% of net sales 14.9 % 8.8 % 16.1%Norway 0.4 -0.4 184.9 % 2.3% of net sales 1.2 % -1.6 % 2.0%Denmark -1.3 -0.6 -97.5 % -2.2% of net sales -15.0 % -7.8 % -6.2%Europe East -1.7 -2.4 31.1 % -3.5% of net sales -17.7 % -32.2 % -8.3%Europe Central -1.2 -2.6 55.4 % 0.8% of net sales -8.2 % -21.8 % 1.2%Net items not allocated to operating -1.1 -1.8 38.9 % -4.7segmentsGroup EBIT 2.7 -5.6 147.9 % 29.7% of net sales 2.0 % -5.0 % 5.6% 56
  56. 56. LARGEST SHAREHOLDERS % of share Number of shares capital1. Nordstjernan AB 31,882,078 29.332. Julius Tallberg Oy Ab 11,962,229 11.013. Varma Mutual Pension Insurance Company 7,831,299 7.204. Ilmarinen Mutual Pension Insurance Company 5,537,214 5.095. Tapiola Mutual Pension Insurance Company 2,320,000 2.136. Odin Norden 1,824,328 1.687. Odin Finland 1,417,968 1.308. Veritas Pension Insurance Company Ltd 1,235,668 1.149. Odin Europa Smb 1,082,355 1.0010. Nordea Nordenfonden 933,105 0.86 *As 57 per 31 March 2011

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