Download as PDF, PPTX
Ramirent's Half Year Financial Report 2016
- 1. 4 AUGUST2016 MAGNUSROSÉN,PRESIDENTANDCEO PIERREBRORSSON,CFO Strongsales growth, comparableEBITA increased slightly HalfYearFinancialReport2016
- 2. • Group performance •Segment review • Market outlook • Key figures • Financial position • Appendices Agenda 4/8/2016 Half Year Financial Report 20162
- 3. 3 • Net sales169.4(159.4)MEURup by 6.3%or 8.2%atcomparable exchangerates • EBITA16.61) (21.02))MEURor9.8%1) (13.2%2))ofnet sales • Comparable EBITA17.5(17.2)MEURor 10.3%(10.8%)ofnetsales • Grosscapex 60.1 (46.8)MEUR • Cashflowafter investments-23.7 (-22.3) MEUR • EPS0.08 (0.12)EUR HighlightsQ22016–Atcomparableexchangerates,netsales increasedinallsegments,exceptforEuropeEast 4/8/2016 Half Year Financial Report 2016 1) Items affecting comparability included the derecognition of a contingent consideration liability, EUR 0.3 million, and costs of EUR 1.2 million relating to the change of President and CEO. 2) The comparison period included derecognition of a contingent consideration liability, EUR 3.8 million, connected to the acquisition of weather shelter and scaffolding company DCC in 2014
- 4. 4 • Netsales315.4(300.0)MEURupby5.1%or7.0% atcomparable exchangerates •EBITA23.8(25.2)MEURor7.6%(8.4%)of net sales • ComparableEBITA24.8(21.3)MEURor7.9% (7.1%)ofnetsales • Returnonequity12.6%(11.5%) • Returnoncapital employed9.0%(9.8%) • Grosscapex100.5(65.0)MEUR • Cashflowafterinvestments-30.5(-21.4)MEUR • EPS0.11(0.12)EUR • NetdebttoEBITDA2.1x(1.8x) Highlights H12016:SaleshigherandreportedEBITAslightly lowercomparedtopreviousyear 4/8/2016 Half Year Financial Report 2016
- 5. • Deepenedcooperationwith SkanskaMaskinthroughafive- yearrentalcooperationagreement • Firstcooperationagreementin Swedenwassignedin2014 •Theexpanded agreement improves availabilityofmachines forbothcompanies’customersin Sweden.Inconjunctionwiththe agreement,Ramirentalsosoldits stockoflargertowercranesin SwedentoSkanskaMaskin 5 • Ramirent’sfirstframeagreementever withJMinSweden • Thethree-yearagreementcovers mostofRamirent’sproductgroups andincludesanoptionfor prolongation • JMisoneoftheleadingdevelopersof housingandresidentialareasinthe Nordicregion ImportantnewrentalagreementswithlargeNordic constructioncompanies 4/8/2016 Half Year Financial Report 2016 • Amulti-yearpartnershipagreement forYIT’sTriplaproject,whichis currentlyoneofthelargest constructionsitesinFinland • Offeringincludesequipmentrental, controlsystems,logistics,transport planningandcontrol,scaffoldingand weathercovers, planningand managingtidyoperationsanddust control,chemicalsmanagementand providingtrainingservices
- 6. Salesgrowthcontinuedinthesecondquarter SECOND-QUARTERNETSALES(MEUR) 6 4/8/2016 HalfYear Financial Report 2016 159.4 169.4 0 20 40 60 80 100 120 140 160 180 200 Q2 2015 Q2 2016 300.0 315.4 0 40 80 120 160 200 240 280 320 360 1-6 2015 1-6 2016 FIRST-HALFNET SALES(MEUR) Up by 6.3% or 8.2% at comparable exchange rates Up by 5.1% or 7.0% at comparable exchange rates
- 7. REPORTED EBITAQ2 16(MEURAND% NETSALES) 21.01) 16.62) 13.2% 9.8% 0% 2% 4% 6% 8% 10% 12% 14% 0 2 4 6 8 10 12 14 16 18 20 22 24 Q2 2015 Q2 2016 ComparableEBITAincreasedslightlyinthesecondquarter 7 4/8/2016 Half Year Financial Report 2016 COMPARABLEEBITAQ2 16 (MEURAND% NET SALES) 17.2 17.5 10.8% 10.3% 0% 2% 4% 6% 8% 10% 12% 14% 0 2 4 6 8 10 12 14 16 18 20 22 24 Q2 2015 Q2 2016 1) Includes positive impact from derecognition of a contingent consideration liability of EUR 3.8 million from an acquisition in 2014 2) Includes positive impact from derecognition of a contingent consideration liability of EUR 0.3 million and costs of EUR 1.2 million relating to the change of the President and CEO
- 8. 8 4/8/2016 HalfYear Financial Report 2016 REPORTED EBITAH1 16 (MEURAND% NETSALES) 25.21) 23.82) 8.4% 7.6% 0% 2% 4% 6% 8% 10% 12% 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 H1 2015 H1 2016 EBITAmargindeclinedslightlyinthefirsthalfoftheyear COMPARABLEEBITAH116 (MEURAND% NET SALES) 21.3 24.8 7.1% 7.9% 0% 2% 4% 6% 8% 10% 12% 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 H1 2015 H1 2016 1) Includes positive impact from derecognition of a contingent consideration liability of EUR 3.8 million from an acquisition made in 2014 2) Includes positive impact from derecognition of a contingent consideration liability of EUR 0.3 million and costs of EUR 1.2 million relating to the change of the President and CEO
- 9. Alllong-termfinancialtargetsweremetattheendof thesecondquarter 9 4/8/2016 HalfYear Financial Report 2016 *Rolling 12 months net sales growth at comparable exchange rates was above FY2016 growth target of 4.3% (2.0%-points + 2.3% estimated GDP growth for 2016) Source: Average of GDP estimates from SEB 6/2016, SHB 6/2016, OP 5/2016 and EC 6/2016
- 10. 4/8/2016 Half YearFinancial Report 201610 Segmentreview
- 11. HIGHLIGHTSQ2 16 Finland:Double-digit salesgrowthandimproved profitability NETSALES KEYFIGURES PROFITABILITY • InGeneralRental,demand forequipment rentalwas drivenbyrecoveryinresidentialconstructionand ongoinglarge non-residential constructionprojects • InSolutions,strongdemand intheindustrialsector fuelledsales growth • EBITA improved based on strongsales growth 0 10 20 30 40 50 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Net sales up by 15.0% 11 0% 5% 10% 15% 20% 25% 30% Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 EBITA-margin (%) ROCE (%) R12 4/8/2016 Half Year Financial Report 2016 Finland 4–6/16 4–6/15 Change 1–6/16 1–6/15 Change Net sales 45.3 39.4 15.0% 83.4 71.5 16.8% EBITA 6.41) 4.5 42.6% 9.31) 5.3 76.4% % of net sales 14.0%1) 11.3% 11.1%1) 7.4% Capital employed 128.0 117.2 9.2% ROCE (%) 2) 19.4% 12.9% Personnel (FTE) 508 482 5.4% Customer centres 55 59 −6.8% 1) EBITA included the derecognition of a contingent consideration liability. The amount, EUR 0.3 million was recognised in other operating income. Comparable EBITA for the second quarter 2016 was EUR 6.1 million or 13.4% of net sales and for January-June 2016 EUR 9.0 million or 10.8% of net sales. 2) Rolling 12 months
- 12. HIGHLIGHTSQ2 16 Sweden:SalesgrewinallBusinessAreas,EBITAimproved towardstheendofthequarter NETSALES KEY FIGURESPROFITABILITY • Salesdeveloped favourablyinallbusiness areas supportedby highconstructionactivity • Importantnew agreements signed withJM AB and Skanska Maskin ABinSweden • Comparable EBITA was unsatisfactoryand impairedby relocationofa major HubinStockholm,increased provisions forcreditlosses andslower thanexpected realisationofprice increases 0% 5% 10% 15% 20% 25% Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 EBITA-margin (%) ROCE (%) R12 0 10 20 30 40 50 60 70 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 12 1) The comparison period included derecognition of a contingent consideration liability amounting EUR 3.8 million. Second-quarter 2015 comparable EBITA was EUR 8.3 million or 14.6% of net sales. Comparable EBITA in January-June 2015 was EUR 13.4 million or 12.4% of net sales. 2) Rolling 12 months 4/8/2016 Half Year Financial Report 2016 Net sales up by 9.3% or by 9.0% at comparable exchange rates Sweden 4–6/16 4–6/15 Change 1–6/16 1–6/15 Change Net sales 62.1 56.8 9.3% 115.8 107.8 7.4% EBITA 8.8 12.11) −27.7% 13.2 17.21) −23.6% % of net sales 14.1% 21.4%1) 11.4% 16.0%1) Capital employed 199.7 187.7 6.4% ROCE (%) 2) 12.5% 17.9% Personnel (FTE) 792 776 2.0% Customer centres 78 80 −2.5%
- 13. HIGHLIGHTSQ2 16 NETSALES KEYFIGURES PROFITABILITY • InGeneralRental,sales were supportedby small and mediumsized constructionprojectsaroundthecountry • InTemporary Space,activityimproved inthepublicsector butdue tocontinuedlow demand intheoilandgassector some excessfleetwas re-allocatedtoSweden • EBITA decreased mainlyduetolowersales and profitabilityinTemporary Space 0% 5% 10% 15% 20% 25% Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 EBITA-margin (%) ROCE (%) R12 0 5 10 15 20 25 30 35 40 45 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Net sales down by 3.5% but up by 5.1% at comparable exchange rates 13 1) Rolling 12 months 4/8/2016 Half Year Financial Report 2016 Norway:ActivityimprovedinGeneralRentaldespite weakoverallmarketconditions Norway 4–6/16 4–6/15 Change 1–6/16 1–6/15 Change Net sales 29.9 31.0 −3.5% 57.8 62.0 −6.9% EBITA 1.9 2.9 −34.9% 3.2 3.9 −17.4% % of net sales 6.3% 9.4% 5.6% 6.3% Capital employed 128.6 134.1 −4.1% ROCE (%) 1) 3.0% 6.7% Personnel (FTE) 398 413 −3.5% Customer centres 41 43 −4.7%
- 14. HIGHLIGHTSQ2 16 Denmark:Continuedimprovementinsalesandprofit NETSALES KEY FIGURESPROFITABILITY • InGeneralRental,demand continuedtoimprove supportedby highactivityinresidential constructionand renovationespeciallyinthelargecities • ThecontinuedEBITA improvement was drivenbysales growthandacontinuedfocuson costcontrol -25% -20% -15% -10% -5% 0% 5% 10% 15% Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 EBITA-margin (%) ROCE (%) R12 Net sales increased by 1.4% or by 1.1% at comparable exchange rates 14 1) Rolling 12 months 4/8/2016 Half Year Financial Report 2016 0 2 4 6 8 10 12 14 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Denmark 4–6/16 4–6/15 Change 1–6/16 1–6/15 Change Net sales 10.8 10.6 1.4% 21.1 20.0 5.7% EBITA 0.5 0.3 56.3% 0.9 −1.1 n/a % of net sales 4.3% 2.8% 4.2% −5.4% Capital employed 30.9 26.6 16.2% ROCE (%) 1) 6.3% −9.0% Personnel (FTE) 142 151 −6.0% Customer centres 13 15 −13.3%
- 15. HIGHLIGHTSQ2 16 EuropeEast:StabledevelopmentinEstonia,price pressurecontinuedinLatvia NETSALES(THE BALTICS) KEYFIGURES PROFITABILITY(THEBALTICS) • Thedevelopment was stable inEstonia whilesales were affectedbya lack ofnew large projectsin theLatvianmarket andincreased competitionintheLithuanianmarket • EBITA decreased primarilyduetolower sales andprice pressure intheLatvianmarket • FortrentGroup:Despite challengingmarket conditions, profitabilityimproved as a resultofcostreductionmeasures andprice increases intheRussian market 0 2 4 6 8 10 12 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Net sales decreased by 2.1% -5% 0% 5% 10% 15% 20% 25% 30% 35% Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Baltics EBITA-margin (%) Baltics ROCE (%) R12 15 4/8/2016 Half Year Financial Report 2016 1) Rolling 12 months Europe East 4–6/16 4–6/15 Change 1–6/16 1–6/15 Change Net sales 8.4 8.5 −2.1% 15.0 15.1 −0.5% EBITA 1.4 1.7 −17.8% 1.3 1.9 −31.3% % of net sales 17.2% 20.4% 8.5% 12.4% Capital employed 57.0 52.2 9.1% ROCE (%) 1) 12.1% 13.4% Personnel (FTE) 262 257 1.8% Customer centres 44 43 2.3% Fortrent Group’s second–quarter EBITA amounted to EUR 0.6 (0.3) million. The second–quarter EBITA margin improved to 8.0% (3.1%) of net sales. The net result was EUR 0.3 (0.2) million of which Ramirent's share was 50%.
- 16. HIGHLIGHTSQ2 16 EuropeCentral:StabledemandinPolandbutlower marketactivityinCzechRepublicandSlovakia NETSALES KEY FIGURESPROFITABILITY • InGeneralRental,demand pickedupinPoland • InSolutions,demandwas supportedbyprojectsinthe Polish industrysector • LowervolumesintheCzechRepublic andSlovakia impactednegativelyonEBITA -25% -20% -15% -10% -5% 0% 5% 10% 15% 20% Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 EBITA-margin (%) ROCE (%) R12 16 0 2 4 6 8 10 12 14 16 18 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 4/8/2016 Half Year Financial Report 2016 Net sales down by 2.0% or up by 2.6% at comparable exchange rates 1) Rolling 12 months Europe Central 4–6/16 4–6/15 Change 1–6/16 1–6/15 Change Net sales 13.4 13.7 −2.0% 24.7 24.7 0.0% EBITA 0.7 0.9 −21.7% −0.1 0.3 n/a % of net sales 5.0% 6.2% −0.4% 1.2% Capital employed 59.4 51.3 15.8% ROCE (%) 1) 5.0% 4.2% Personnel (FTE) 497 489 1.8% Customer centres 56 55 1.8%
- 17. 4/8/2016 Half YearFinancial Report 201617 Marketoutlook
- 18. Ramirentexpectsdemandforequipmentrentaltogrowin itsmainmarketsinH22016 GDP GROWTH ESTIMATESBYSEGMENTFOR 2016 RAMIRENT'SEXPECTATIONSON OVERALL DEMANDBY EQUIPMENT RENTAL MARKET 18 Favourable Stable Challenging 4/8/2016 Half Year Financial Report 2016 1.0% 3.6% 1.1% 1.2% 2.6% 3.2% 0% 1% 2% 3% 4% 5% 6% Finland Sweden Norway Denmark The Baltics Europe Central 5.3% 3.5% 4.1%1) 1.8% -0.5% 4.3% -1% 0% 1% 2% 3% 4% 5% 6% Finland Sweden Norway Denmark The Baltics Europe Central CONSTRUCTIONVOLUMEGROWTH BY SEGMENTFOR 2016 1) Driven largely by infrastructure construction which is expected to grow by 10.8% while building construction is estimated to increase by 1.7% in 2016 Source: Euroconstruct 6/2016 and average of GDP estimates from SEB 6/2016, SHB 6/2016, OP 5/2016 and EC 6/2016
- 19. Ramirent outlookfor 2016unchanged 4/8/2016 HalfYear Financial Report 201619 In 2016, Ramirent’s net sales in local currencies and EBITA margin are expected to increase from the level in 2015.
- 20. 4/8/2016 Half YearFinancial Report 201620 Keyfigures
- 21. Allsegmentscontributedpositivelytosecond-quarterEBITA 21 4/8/2016 HalfYear Financial Report 2016 Finland 26.7% Sweden 36.5% Norway 17.6% Denmark 6.3% Europe East – Baltics 4.9% Europe Central 7.9% NET SALES BY SEGMENT Q2 16 Finland 31.4% Sweden 45.5% Norway 9.8% Denmark 2.4% Europe East – Baltics 7.4% Europe Central 3.5% • Growing Nordic market represented 87.2% of Ramirent's net sales in the second quarter COMPARABLE EBITA BY SEGMENT Q2 16 • All segments made positive contributions to the second-quarter EBITA
- 22. 11.3% 14.6% 9.4% 2.8% 6.2% 13.4% 14.1% 6.3% 4.3% 15.5% 5.0% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% Finland SwedenNorway Denmark The Baltics Europe Central Second-quartersalesgrowthaboveGDPgrowthin Ramirent'slargestsegments Q2 15 Q2 16 NETSALESGROWTH Q2 16 AT COMPARABLEFX. AND GDP GROWTH ESTIMATES COMPARABLEEBITAMARGIN(%) Q2 16 22 4/8/2016 Half Year Financial Report 2016 9.0% 5.1% 1.1% 2.6% 1.0% 3.6% 1.1% 1.2% 2.6% 3.2% -2% 2% 6% 10% Finland Sweden Norway Denmark The Baltics Europe Central -2.1% Q2 16 sales growth at comparable fx. GDP growth FY2016E 15.0% Source: Average of GDP estimates from SEB 6/2016, SHB 6/2016, OP 5/2016 and EC 6/2016 19.5%
- 23. GROSSPROFIT (MEUR)Q2 16 68.8% 66.0% 63.4%63.1% 40% 45% 50% 55% 60% 65% 70% 75% Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 101.1 106.9 0 20 40 60 80 100 120 Q2 15 Q2 16 GROSSMARGIN(%) Q2 16 • Second–quarter gross margin on par with previous year despite negative change in sales mix • Second-quarter gross profit increased to 106.9 (101.1) MEUR 23 Grossmarginonparwithpreviousyear–effortsto improvecontrolofmaterialandservicescostscontinue 4/8/2016 Half Year Financial Report 2016
- 24. Reportedsecond-quarterEBITAlowery-o-ymainlydueto anearn-outsettlementinthecomparisonperiod EBITABRIDGE(MEUR) Q2 15– Q2 16 21.0 1.9 -3.4 -1.0 0.2 -0.3 -0.2 -1.6 16.6 0 2 4 6 8 10 12 14 16 18 20 22 24 EBITA Q2 2015 Finland Sweden Norway Denmark Europe East Europe Central Items not allocated to segments EBITA Q2 2016 11.3% 21.4% 9.4% 2.8% 20.4% 6.2% 14.0% 14.1% 6.3% 4.3% 17.2% 5.0% EBITA margin Q2/2015 EBITA margin Q2/2016 24 4/8/2016 Half Year Financial Report 2016 Including 3.8 MEUR derecognition of a contingent consideration liability Strong sales growth drove result improvement Lower sales and profitability in Temporary Space Costs of 1.2 MEUR relating to the change of President and CEO
- 25. FIXEDCOSTS (MEUR)AND% OFGROUP NETSALES Fixedcostsimpactedbyorganisationaldevelopment costsandone-offitems • Second-quarter fixed costs 65.5 (60.0) MEUR or 38.6% (37.6%) of net sales • Main items that increased fixed costs were relocation of a major hub in Stockholm, increased provisions for credit losses and costs related to change of President & CEO (1.2 MEUR) 61.5 58.6 60.0 65.5 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 0 10 20 30 40 50 60 70 80 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 25 4/8/2016 Half Year Financial Report 2016
- 26. CUSTOMERCENTRESQ2 2016 PERSONNELQ22016 Personnelandcustomercentrenetworkattheendofthe quarter Group total: 2,760 (2,682) 55 (59) 44 (43) 56 (55) 78 (80) 13 (15) 41 (43) 26 4/8/2016 Half Year Financial Report 2016 10.5 6.9 9.2 10.2 0 2 4 6 8 10 12 14 16 Q3 15 Q4 15 Q1 16 Q2 16 WORK SAFETY (ACCIDENTSPER MILLIONWORKINGHOURS) Total number of customer centres at the end of the second quarter was 287 (295) Finland 508 (+5%) Sweden 792 (+2%) Norway 398 (-4%) Denmark 142 (-6%) The Baltics 262 (+2%) E. Central 497 (+2%) Group administration 158 (+37%) Ramirent started to disclose accident frequency in interim reports as of Q3 2015
- 27. EARNINGSPER SHARE Second-quarterEPSdecreasedto0.08(0.12) • Netfinancial items decreased to -3.0 (-2.1) MEUR in the second quarter • Second-quarter EBT decreased to 11.1 (16.7) MEUR • Effective tax rate for the Group was 21.2% (20.5%) in the second quarter • Second-quarter result for the period amounted to 8.8 (13.2) MEUR, corresponding EPS of 0.08 (0.12) 27 0.11 0.07 0.12 0.08 0.00 0.02 0.04 0.06 0.08 0.10 0.12 0.14 0.16 0.18 0.20 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 4/8/2016 Half Year Financial Report 2016 (-0.00)
- 28. INVESTMENTSINMACHINERYAND EQUIPMENT(MEUR)AND% OFNET SALES Capitalexpenditureincreasedtosupport organic growthinallbusinessareas • Second-quarter gross capex 60.1 (46.8) MEUR or 35.5% (29.4%) of net sales • Investments in machinery and equipment increased to 54.7 (44.5) MEUR or 32.3% (27.9%) of net sales • Sales of used equipment amounted to 6.6 (4.8) MEUR • Committed investments on rental machinery increased to 41.3 (25.2) MEUR at the end of the second quarter 28 4/8/2016 Half Year Financial Report 2016 28.0 29.5 44.5 54.7 0% 5% 10% 15% 20% 25% 30% 35% 40% 0 10 20 30 40 50 60 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Investments in machinery and equipment Share of net sales-%
- 29. CASHFLOWAFTER INVESTMENTS(MEUR) Strongoperativecashflowinthequarter–cashflowafter investmentsimpactedbyhighercapex • Second–quartercash flow from operations increased to 35.9 (29.1) MEUR • Cash flow from investing activities amounted to -59.6 (-51.4) MEUR in the second quarter • Second-quarter cash flow after investments was -23.7 (-22.3) MEUR • Cash flow after investments mainly impacted by higher second-quarter capital expenditure -5.2 -19.4 -22.3 -23.7 -30 -20 -10 0 10 20 30 40 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 29 4/8/2016 Half Year Financial Report 2016
- 30. Returnoncapitalemployedat9.0%(9.8%) RETURN ON CAPITALEMPLOYED% 9.8% 9.0% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% Q2 15 Q2 16 • TheGroup's second-quartercapitalemployed increased by6.5% to641.5 (602.4) MEUR RETURN ON CAPITAL EMPLOYED% ANDCAPITAL EMPLOYED(MEUR) 30 4/8/2016 Half Year Financial Report 2016 • Second-quarterROCE decreasedto9.0%(9.8%) 15.8% 10.3% 9.8% 9.0% 0% 5% 10% 15% 20% 25% 0 100 200 300 400 500 600 700 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2
- 31. 19.4% 12.5% 3.0% 6.3% 12.7% 5.0% -20% -15% -10% -5% 0% 5% 10% 15% 20% 25% Finland Sweden NorwayDenmark The Baltics Central Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 RETURN ON CAPITAL EMPLOYED% (ROLLING12 MONTHS) ROCEimprovedy-o-yinFinland,DenmarkandEurope Central 31 4/8/2016 Half Year Financial Report 2016
- 32. ReturnonequityaboveRamirent'slong-termfinancial target RETURN ON EQUITY% 11.5% 12.6% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% Q215 Q2 16 • TheGroup's totalequityamountedto286.5 (303.6) atthe endofthesecondquarter • Equityper share was2.66 (2.81) attheofendofthe second quarter • Returnonequitywas 12.6% (11.5%), whichwas slightly above Ramirent's long-termfinancialtargetof12% per fiscalyear ROE % ANDTOTAL EQUITY(MEUR) 19.3% 12.1% 11.5% 12.6% 0% 5% 10% 15% 20% 25% 0 50 100 150 200 250 300 350 400 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 32 Financial target: Return on Equity of 12% per fiscal year 4/8/2016 Half Year Financial Report 2016
- 33. 4/8/2016 Half YearFinancial Report 201633 Financialposition
- 34. NetdebttoEBITDAratioincreasingaccordingtoplanand remainsbelowlong-termfinancialtarget NETDEBT (MEUR) • NetdebttoEBITDAratiowas 2.1x(1.8x)at theendofthe second quarter,whichwas below Ramirent’s long-term financialtargetofmaximum 2.5xattheendofeachfiscal year • Netdebtincreased by19.3% and amountedto354.4 (297.1) MEUR NETDEBT TO EBITDARATIO 34 4/8/2016 Half Year Financial Report 2016 1.4x 1.2x 1.6x 1.8x 2.1x 0.0 0.5 1.0 1.5 2.0 2.5 3.0 Q1 2012 Q2 Q3 Q4 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Financial target: Net debt to EBITDA below 2.5x at the end of each fiscal year 264.2 273.4 297.1 354.4 0 50 100 150 200 250 300 350 400 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2
- 35. REPAYMENTSCHEDULEOF INTEREST-BEARINGLIABILITES(MEUR) Debtmaturitystructurewasprolongedduringthe secondquarter • Ramirenthad unused committed back-up loan facilities of 160.9 (118.1) MEUR available at the end of the second quarter • Second-quarter average interest rate of the loan portfolio including interest rate hedges was 2.2% (2.4%) • Committed short-term credit facility of 95 MEUR matures in the second quarter of 2017 • In addition to bank facilities and bond, Ramirent is utilising a domestic commercial paper programme of up to 250 MEUR 35 4/8/2016 Half Year Financial Report 2016 95 100 145 175 2017 2018 2019 2020 2021 EUR 515.0 million in committed credit facilities Net debt EUR 354.4 million (Bond)
- 36. Forfurtherinformation 4/8/2016 Half YearFinancial Report 201636
- 37. 37 Appendix 4/8/2016 Half YearFinancial Report 2016
- 38. • Ramirentisa leadingequipmentrentalsolutionsgroupoperatingin 10countrieswith2015net salesof EUR636million • Ramirent’smissionistocombinethebestequipment,servicesand know-howintorentalsolutionsthatsimplifycustomer’sbusiness • Ramirentservesa broadrange ofcustomersectorsincluding construction,industry,services,thepublicsectorand households • Ramirenthad2,757employeesoperatingfrom 287customer centresattheend ofJune2016 • Ramirentwasfoundedin1955and islistedon theNASDAQHelsinki (RMR1V) Ramirent is a leading equipment rental solutions group serving a large customer base Russia and Ukraine presence through JV Fortrent JV Fehmarnbelt Solutions Services A/S, with Zeppelin Rental NET SALES PERSEGMENT Q216 NET SALES BY CUSTOMER SECTOR Q216 NET SALES BY BUSINESS AREAQ216 Finland 27% Sweden 37% Norway 18% Denmark 6% Europe East – Baltics 5% Europe Central 8% Construction 50% Industrial 18% Services & Retail 23% Public 3% Private 6% General Rental 63% Solutions 32% Temporary Space 4% 38 4/8/2016 Half Year Financial Report 2016
- 39. 39 Steel nail shop Rakennusmies founded Equipment rental business started JVin Moscow, Russia Enter Estonia MBO by key personnel and capital investors Enter Lithuania Listed on the Helsinki Stock Exchange Enter Poland Enter Slovakia 19831955 1988 1994 1995 1996 1997 1998 2000 2001 2002 2003 2004 2006 20132008 Acquires Bautas in Norway Acquires Altima in Sweden Fortrent JV with Cramo in Russia and Ukraine Acquired by the Partek group and renamed A-Rakennusmies Enter Latvia Renamed Ramirent Greenfield entry to Czech RepublicJV in Ukraine and greenfield entry to Hungary Exit Hungary 2014-2015 Bolt-on acquisitions in the Nordics More than sixty years of knowledge and experience 4/8/2016 Half Year Financial Report 2016
- 40. 4/8/2016 Half YearFinancial Report 201640 Ramirentranks#4amongtheequipmentrental companiesinEurope 636 0 200 400 600 800 1000 Loxam Algeco Scotsman (EMEA) Cramo Ramirent Sarens Speedy Hire Kiloutou HSS Hire Zeppelin Rental Liebherr Mietpartner Net sales 2015 (MEUR) Net sales 2015 (MEUR) Largest rental companies in Europe Largest rental companies globally 636 0 1000 2000 3000 4000 5000 6000 United Rentals Ashtead Group Aggreko Aktio Corp Algeco Scotsman Herz Equipment Rental Kanamoto Loxam Nishio Rent Nikken Corp. Cramo Ramirent Coates Hire Sarens Home Depot Rentals Blue Line Rental Maxim Crane Taiyo Kenki Rental Kiloutou Mobile Mini
- 41. Benefits More uptime incore operations due to less downtime in equipment, less maintenance costs, right choice of equipment improves efficiency, less product liability risk Planning On-site services Logistics Merchandise sale Rental insurance Training Benefits Lighter balance sheets, less investments 41 Benefits Understanding client requirements helps to customise product and service 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 Integrated rental Solutions Benefits Easy to buy, reduced number of subcontractors, increased focus on the core business Ramirent's offering stretches from single equipment rental to solutions 4/8/2016 Half Year Financial Report 2016
- 42. We continue topursue sustainable profitable growth through five strategic focus themes Customer facing Internal 42 4/8/2016 Half Year Financial Report 2016
- 43. CHARACTERISTICS • Localbusiness,where Ramirentprovidesequipment andservices • Highergrossmargin,butmust carryfixedcostsofthe customercentrenetwork •Highershareofequipment rental • Focusonserviceleveland efficiency Half Year Financial Report 2016 CHARACTERISTICS • Largerprojects,where Ramirentisinvolvedearlyin theprocess • Lowergrossmargin,with moresubcontractedservices • Moreserviceintenseandless employedcapital • Focusonturn-keysolutions andknow-how CHARACTERISTICS • Longrentalcontracts • Ramirentprovidesmodules foraccommodation,offices, schools&healthcare • Highmarginsbutcapital intense • Stablecashflowprofile Ramirent targets sustainable profitable growth by developing the business mix 43 4/8/2016 Business areas with different characteristicsand risk profiles Share of Group sales
- 44. Ramirent targets abusiness mix that balances growth opportunities, profitability and risk GROUP NET SALES SPLIT BY BUSINESS AREA Q2 16 44 Half Year Financial Report 20164/8/2016 Temporary Space 4% General Rental 63% Solutions 32%
- 45. Ramirent can generategrowth in multiple ways Ramirent seeks growth from five different sources New customer segments New geographies Bolt-on acquisitions Capturing outsourcing opportunities in construction sector Increasing services, customer project coordination and solutions Grow with new customers Increased share- of-wallet with current customers Strategic transactions 45 Capturing outsourcing opportunities in other sectors 4/8/2016 Half Year Financial Report 2016
- 46. 4/8/2016 Half YearFinancial Report 201646 80 90 100 110 120 130 2011 2012 2013 2014 2015 2016E Equipmentrentalmarketssupportedbyincreasing constructionactivityinmostofRamirentmarkets CONSTRUCTIONVOLUMEGROWTH BY COUNTRY (INDEX2011 = 100) Sweden Slovakia The Baltics Norway Denmark Poland Finland The Czech Republic Source: Euroconstruct 6/2016
- 47. Second-quarterNordicorderbooksincreasedby15.0%at comparableexchangerates NORDICCONSTRUCTIONORDER BOOKS (MEURANDCHANGEATCOMPARABLEEXCHANGERATES) 47 • Second-quarter Nordic construction order books including NCC, Skanska, SRV Lemminkäinen and YIT increased by 15.0% at comparable exchange rates • At comparable exchange rates, Ramirent's rolling 12 months net sales were up by 6.4% compared to previous year -40% -20% 0% 20% 40% 60% 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 NCC Skanska SRV YIT Lemminkäinen Change in Net sales (y-o-y), R12 Ramirent Change in order backlog (y-o-y), Nordic construction Q2/08 Q2/09 Q2/10 Q2/11 Q2/12 Q2/13 Q2/14 Q2/15 Q2/16 4/8/2016 Half Year Financial Report 2016
- 48. Strategy summary The leadingand most progressive equipment rental solutions company • Annual net sales growth > GDP+2 %-points • Return on Equity (ROE) 12% per fiscal year • Net debt/EBITDA < 2.5x at the end of each fiscal year • Dividend pay-out ratio at least 40% of net profit More than machines Open, engaged, and progressive Sustainable profitable growth 48 4/8/2016 Half Year Financial Report 2016
- 49. Keyfigures4-6/2016and1-6/2016 49 4/8/2016 HalfYear Financial Report 2016 KEY FIGURES 4−6/16 4−6/15 Change 1−6/16 1−6/15 Change 1−12/15 (MEUR) Net sales 169.4 159.4 6.3% 315.4 300.0 5.1% 635.6 EBITDA 42.2 46.0 −8.3% 74.1 74.6 −0.7% 168.1 % of net sales 24.9% 28.9% 23.5% 24.9% 26.4% Comparable EBITA1) 17.5 17.2 1.8% 24.8 21.3 16.1% 63.4 % of net sales 10.3% 10.8% 7.9% 7.1% 10.0% EBITA 16.62) 21.03) −21.1% 23.82) 25.23) −5.3% 66.8 % of net sales 9.8%2) 13.2%3) 7.6%2) 8.4%3) 10.5% EBIT 14.1 18.8 −24.9% 18.9 20.7 −8.7% 57.9 % of net sales 8.3% 11.8% 6.0% 6.9% 9.1% EBT 11.1 16.7 −33.6% 14.2 16.4 −13.4% 46.9 % of net sales 6.5% 10.4% 4.5% 5.5% 7.4% Result for the period attributable to the owners of the parent company 8.8 13.2 −33.2% 11.4 13.1 −13.0% 39.0 Earnings per share (EPS), (basic and diluted), EUR 0.08 0.12 −33.2% 0.11 0.12 −13.0% 0.36 Gross capital expenditure on non-current assets 60.1 46.8 28.2% 100.5 65.0 54.7% 139.2 Gross capital expenditure, % of net sales 35.5% 29.4% 31.9% 21.7% 21.9% Cash flow after investments −23.7 −22.3 −6.3% −30.5 −21.4 −42.5% −6.3 Capital employed at the end of period 641.5 602.4 6.5% 600.5 Return on capital employed (ROCE),%4) 9.0% 9.8% 10.0% Return on equity (ROE),%4) 12.6% 11.5% 12.1% Net debt 354.4 297.1 19.3% 280.9 Net debt to EBITDA ratio4) 2.1x 1.8x 20.0% 1.7x Gearing,% 123.7% 97.9% 88.0% Equity ratio,% 34.7% 39.0% 41.4% Personnel at end of period (FTE) 2,757 2,682 2.8% 2,654 1) Ramirent’s performance measure “EBITA excluding non-recurring items” is replaced with “comparable EBITA” as of first quarter of 2016. Comparable EBITA is disclosed to improve comparability between reporting periods. 2) In the second quarter, items affecting comparability in EBITA included derecognition of a contingent consideration liability, EUR 0.3 million, and costs of EUR 1.2 million relating to the change of President and CEO. 3) The comparison period included derecognition of a contingent consideration liability, EUR 3.8 million, connected to the acquisition of weather shelter and scaffolding company DCC in 2014. 4) Rolling 12 months
- 50. Fixed 49% Floating 51% • Total loanportfolio (interest-bearing liabilities) 355.1 (298.8) MEUR at the end of the second quarter • Second-quarter non- current interest-bearing liabilities amounted to 111.9 (187.4) MEUR • Current interest-bearing liabilities 243.1 (111.4) MEUR at the end of the second quarter Well-balanceddebtportfolio Bond 28% Com- mercial papers 45% INTEREST-BEARINGLIABILITIESQ2 16 INTERESTRATES TYPE Q2 16 50 4/8/2016 Half Year Financial Report 2016 Loans from financial institutions 27%
- 51. Ramirent‘s largest shareholdersat the end of July 2016 51 LARGESTSHAREHOLDERS31 JULY 2016 Shareholders top-10 Number of shares % of shares 1. Nordstjernan AB 27,513,716 25.31% 2. Oy Julius Tallberg Ab 12,207,229 11.23% 3. Nordea funds 5,561,984 5.12% 4. Ilmarinen Mutual Pension Insurance Company 3,445,154 3.35% 5. Varma Mutual Pension Insurance Company 2,340,865 2.15% 6. Aktia funds 2,055,558 1.89% 7. Ramirent Plc 948,014 0.87% 8. Pensionsförsäkringsaktiebolaget Veritas 600,000 0.55% 9. Föreningen Konstsamfundet R.f 593,500 0.55% 10. The State Pension Fund 532,000 0.49% Subtotal 10 largest shareholders 57,798,020 51.33% Other shareholders 52,899,308 48.67% Total number of shares 108,697,328 100.00% 4/8/2016 Half Year Financial Report 2016
- 52. Ramirent's share pricedevelopment in 2016 52 INDEX 4/8/2016 Half Year Financial Report 2016 INDEX(2016=100) 70 80 90 100 110 120 130 04/01/16 11/01/16 18/01/16 25/01/16 01/02/16 08/02/16 15/02/16 22/02/16 29/02/16 07/03/16 14/03/16 21/03/16 28/03/16 04/04/16 11/04/16 18/04/16 25/04/16 02/05/16 09/05/16 16/05/16 23/05/16 30/05/16 06/06/16 13/06/16 20/06/16 27/06/16 04/07/16 11/07/16 18/07/16 25/07/16 01/08/16 Ramirent Plc OMX Helsinki Mid Cap OMX Helsinki