Ramirent CMD 2011 Agenda

Transcription

1 Ramirent CMD 2011 Agenda 09:00 Registration 09:35 Strategic review Magnus Rosén, CEO 10:00 Fleet management Mikael Kämpe, Director, Group Fleet 10:20 Group sourcing, Dino Leistenschneider, Director 10:40 Break 11:00 Sweden Peter Dahlsten, SVP 11:20 Norway Bjørn Larsen, SVP 11:40 Denmark Erik Høi, SVP 12:00 Lunch 12:45 Finland & Europe East Kari Aulasmaa, SVP 13:30 Europe Central Tomasz Walawender, SVP 14:00 Financial review Jonas Söderkvist, CFO 14:30 Summary, Q&A Magnus Rosén, CEO 14:35 Bus transport to visit City outlet 16:00 Outlet visit ends 16:00 Bus transport to Helsinki center or to HQ via airport

2 Capturing opportunities in the market and realising synergies from working as one company Presentation for Ramirent CMD 2011 President and CEO Magnus Rosén 1 September 2011

3 Summary of January - June 2011 performance 3

4 Highlights January June 2011 Net sales up 18.1% MEUR (240.3) or 14.4 % at comparable exchange rates EBITDA MEUR 68.2 (48.3) EBITDA-margin 24.0% (20.1%) EBIT MEUR 18.1 (1.9) EBIT-margin 6.4% (0.8%) Gross capex MEUR 76.5 (34.2) Cash flow after investments MEUR (9.4) Net debt MEUR (209.3) Gearing 80.4% (70.6%) Number of outlets 399 (353) Acquisitions in Norway, Sweden, Finland and Czech Republic 4

5 Record high level for Nordic construction order books BEUR 25 Order book Nordics (BEUR, real exchange rates)* Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q Q2 NCC Peab Skanska YIT Lemminkäinen Veidekke 18% growth vs. Q2/10 in real exchange rates (+13% in fixed exchange rates) * Order books for Swe, Fin, Nor, Den 5

6 Construction volume forecasts in Ramirent countries EUR bn FI* SE** NO DE PL HU CH SLO EE LA LI F 2012F Source: Euroconstruct as per June 2011 *VTT Expert Service Oy as per May 2011, **Swedish Construction Federation 6/2011, ***Excluding Ukraine

7 2011 outlook and long-term financial targets 7

8 Market and Ramirent outlook as of 1 September 2011 (Unchanged) Market outlook 2011 Ramirent Outlook 2011 Overall, the new residential, infrastructure and renovation construction markets are expected to develop favourably, especially in the Nordic countries, while demand for commercial construction remains weak. Taking this into account, Ramirent expects the recovery in its markets to continue. Also, the improved balance between supply and demand indicates a healthier price level. Ramirent reiterates its outlook for As a result of increased construction activity and improving price levels, net sales are expected to increase in 2011, and the result before taxes is expected to improve compared to However, due to the current financial turmoil, market risks have increased. Ramirent maintains a cautious stance since uncertainties in the macroeconomic development persist. 8

9 Long-term financial targets Return on investment, ROI >18 % p.a. over a business cycle Earnings per share growth >15 % p.a. over a business cycle Gearing 120 % at end of each year Dividend pay-out ratio > 40 % of annual net profit 9

10 The big picture for Ramirent 10

11 Ramirent offers dynamic rental solutions for its customers across industries Definition of Ramirent business and strategic choices What Offering Ramirent s business offering stretches from single products to managing the entire fleet capacity at customer site, through Dynamic Rental Solutions Values Open Engaged Progressive To Whom Customers Ramirent s diverse customer base includes construction, industry, the public sector and private households Mission We simplify business by delivering Dynamic Rental Solutions. Where Geographic presence Ramirent s home market is Europe Brand promise Let s solve it How Concept Ramirent is a general rental company, with an extensive outlet network enabling customer proximity managed through decentralized accountability Vision To be the leading and most progressive equipment rental solutions company in Europe, setting the benchmark for industry performance and customer service. 11

12 Ramirent has a strong market position in all its markets Market position Finland Sweden Norway Denmark Eastern Europe Central Europe #1 #2 #1 #1 #1 #1 Norway 43 depots (4 franchises) Market #1 Denmark 21 depots Market #1 Czech 31 depots (7 franchises) Market #~3 Sweden 73 depots (10 franchises) Market #2 Poland 2 44 depots Market #1 Hungary 2 16 depots Market #1 Finland 85 depots (25 franchises) Market #1 Baltic 40 depots Market #2 Slovakia 35 depots (17 franchises) Market #1 Russia 1 6 depots 10 re-renting agents Market #1 Ukraine 5 depots Market #~4 1) St Petersburg + Moscow 2) Excl. Fomrworks business 12

13 Nordic countries are our largest markets and construction is our largest customer sector Sales per segment 1-6/2011 Sales per customer sector 2010 Europe East 8 % Europe Central 12 % Finland 23 % Industry 14 % Public sector 5 % Households 5 % Construction 76% Denmark 6 % Norway 22 % Sweden 29 % 13

14 Going forward, several drivers support the growth of equipment rental business Rental penetration In the long term, rental penetration is expected to increase in Europe as users recognise the advantages of renting Outsourcing There is a general trend among companies towards outsourcing noncore activities to reduce capital and improve flexibility Rental related solutions Customers are increasingly interested in giving a broader rental related responsibility in their projects to rental companies Market consolidation The equipment rental industry is highly fragmented and Ramirent s strong position enables it to take an active role in the market consolidation Long-term growth in construction markets There is long-term growth potential in the construction volumes per capita in the emerging rental markets compared to Western Europe 14

15 Strategy going forward 15

16 Ramirent s key strategic objectives Sustainable profitable growth Operational excellence Balanced risk level 16

17 Sustainable profitable growth Accelerate growth with acquisitions and outsourcing deals Evaluate entry into new markets Strengthen local offerings and develop solution concepts 17

18 Selective acquisitions and outsourcing deals made during the downturn Outsourcing deal Outsourcing deal Outsourcing deal Acquisition of rental business Outsourcing deal with two Lemminkäinen subsidiaries Acquisition of rental business Acquisition of rental business End of Acquisition of rental business Acquisition of rental business Acquisition of rental business Some 50 companies on our watch list Outsourcing deal Acquisition of rental business Aquisition of rental business 18

19 RAMIRENT OFFERING Ramirent aims to develop profitable rental solutions which support equipment rental INDUSTRIES Construction Power generation Mining Paper Oil & gas Shipyards Facility management Public sector Households PRODUCTS Lifts Heavy machinery Tower cranes and hoists Scaffolding Modules Safety and formworks Light machinery Power and heating Benefits: Lighter balance sheets, less investments SERVICES Planning and design Ramirent know-how Transportation Installation Maintenance Inspections Insurance Operators Fuel/gas refilling Site logistics coordinator Facility management Paperwork for authorities Technical support 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 SOLUTIONS Total management Eco solutions Safety Event Power Access Climate Space. Benefits: Easy to buy, reduced number of subcontractors, increases focus on the core business OUTSOURCING Benefits: By outsourcing functions to Ramirent, companies can increase efficiency and simplify their business by focusing on core competences. INDUSTRY NEEDS

20 Operational excellence Develop a common Ramirent platform Develop group wide IT platform and realize synergies Maintain strong focus on cost efficiency 20

21 Ramirent platform aims to realize group synergies without jeopardizing local sales orientation Ramirent platform Realize the synergies from working as one company, especially in the support processes Capture economics of scale through fleet sharing and coordinated sourcing efforts Leverage the best practices and tools to support local operations and sales Optimize use of group assets Progressive rental partner, simplifying customers business Local customer orientation Entrepreneurial attitude reflected in local sales efforts and customer care Local decision-making Local implementation of Ramirent platform elements Focus on business and customers, not on support processes and administration 21

22 Balanced risk level Diversified portfolios of customers, products and markets Continuous employee competence development Maintain a positive cash flow over the business cycle and a strong financial position 22

23 Ramirent aims to diversify the customer base and grow the share of industry customers Industry sectors with highest opportunities for Ramirent Industry sector Other mining Automotive Oil refining and other fuels Metal industry Chemical and petrochemical Pulp, paper and wood products Industrial investments Construction of industrial facilities is another opportunity within industry. This is classified as construction business and not included in the industry sales targets. Shipyards Energy industry Real estate Service companies Retail industry Current 25 % 75 % Target 40 % 60 % Construction 1 Non-construction 23

24 Summary 2011 strategy execution according to plan We have a well defined strategy to achieve profitable growth We are well equipped to capture opportunities in the market as well as dealing with increased market uncertainty We are committed to deliver shareholder value 24

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