Capital Markets Day 2017 Friday, December 1, 2017 Helsinki

Transcription

1 Capital Markets Day 2017 Friday, December 1, 2017 Helsinki

2 Ramirent executive management team Pierre Brorsson, CFO Dino Leistenschneider, EVP, Fleet, Sourcing, SCM Mikael Kämpe, EVP, Finland HEIKI Onton, EVP, baltics-europe Central Øyvind EMBLEM, EVP, Norway Tapio Kolunsarka, CEO Jonas Söderkvist, EVP, Sweden-Denmark ULRIKA DUNKER, EVP, HR Capital Markets Day

3 CMD 2017 Capital-efficient profitable growth in the core business Tapio Kolunsarka, President and ceo

4 a Wide range equipment rental service company with a diversified customer base # 1 MARKET POSITION in 8 countries ~2,800 employees ~150,000 customers Sales BY Segment denmark 6% Sweden 36% Norway 16% 10 Countries 300 Locations eastern Europe 16% finland 27% Sales MIX Sales BY CUSTOMER SECTOR Industrial Construction SMB OTHER Large Capital Markets Day 2017 Rental Service Temporary Space SMB: Small and medium-sized constructors Large: Large constructors 4

5 We still have great opportunities to grow in our Current markets with our current offering our MARKET SHARE (%) based on 2016 total net sales case finland* 2016 Rental market split Group Sweden ~17% ~16% Consumer 4% Service 6% Public 3% New Building construction 39% Norway Finland ~27% ~15% Infrastructure 11% Industry 12% Renovation 25% Europe Central Denmark ~9% ~10% case Finland* 2016 rental Penetration ~45% ~35-40% Baltics ~24% ~5% RENTAL MARKET SIZE 2016E* (MEUR) New building construction Renovation Infrastructure Source: Excluding Temporary space, FORECON 12/2016, ERA Report 10/2016 * Forecon Capital Markets Day

6 Several GLOBAL TRENDS are supporting our business renting has potential to increase further Leading market positions With room for growth Rental penetration have potential to increase Why rent and not own? Productivity Circularity Growing work safety consciousness Productivity opportunity in construction Flexibility Safety More complex job sites driven by urbanization Capital Markets Day

7 While we can t be satisfied with our track record, Strong improvements are visible MEUR Net Sales and Comparable ebit margin % SEGMENTS SHARE OF COMPARABLE EBIT (%) Denmark 2% Sweden 38% /17 R12M Norway 8% Eastern Europe 26% Finland 27% Net Sales Comparable EBIT margin Capital Markets Day

8 Key actions and achievements in REORGANIZED NON-performing units Scaffolding units in Norway and Sweden Temporary Space in Norway Central European segment ImprovED sales mix through increased focus on the core rental business Rental sales growth jumpstarted Small & Medium sized customer sales growth jumpstarted Service sales mix and profitability improved IMPROVED productivity and REDUCED materials, services and IT spend Group-wide ERP-platform project stopped IT cost efficiency improved Material and service cost improvements Simplification of pricing and MORE effective pricing management Price realization reporting established More effective discount-guidance to frontline Service-related pricing improvements and most importantly spirit & energy in the organization improved Capital Markets Day

9 But still large SelF-Help Value creation opportunities exist for the coming years Pricing structures and disciplines not optimized Equipment Supply chain not optimized Nor digitalized capital expenditure for Replacements not optimized ease of doing business with us not optimized Still too long tail of low-performing units exist Leadership quality & performance MGT not distinctive Capital Markets Day

10 Key building blocks of OUR STRATEGY capital-efficient profitable growth in OUR core Winning in the small and medium-sized business sector Building the industry s best performing supply chain Tighter performance management of low-performing units Becoming the large customers supplier of choice Growing capital efficiently Becoming a great place to work by focusing on leadership and safety Capital Markets Day

11 We aim to win with focused value propositions both for smb and for large customers Winning in the small and medium-sized business sector Total rental market Becoming the large customers supplier of choice Total rental market Why ramirent CAn win business? Widest equipment range Construction SMB Rest of market Construction SMB market Why ramirent CAn win business? Most reliable supplier Construction Large Rest of market Large constructors market Expert support Expert help in safety Convenience & easiness Driver of productivity High equipment availability High delivery accuracy Simple pricing Ramirent Others Usage optimization Early involvement Total Solutions Ramirent Others Capital Markets Day

12 We need to become a great place to work for our employees IN ORDER TO GIVE GREAT SERVICE TO OUR CUSTOMERS top-quartile employee engagement & leadership quality by 2020 Become a safe place to work (LTIF <5) more decision-authority towards front-line and with clearer performance expectations Common leadership behaviors and evaluations Becoming a great place to work by focusing on leadership and safety Capital Markets Day

13 WE Focus on businesses with synergy to our core strategic options explored for temporary space and FortRent WHAT BUSINESSES DO WE WANT TO ENGAGE IN? We want to remain a capital efficient, yet wide-range supplier of construction-related rental equipment and related services Bolt-on acquisitions and outsourcing deals that strengthen the core rental business in our existing markets will be considered Exploring strategic options for Temporary Space, including a potential sale Temporary Space has excellent underlying market growth fundamentals Limited synergies with equipment rental Difficult to prosper when competing about capex with rental equipment Annual net sales ~30 MEUR in the Nordics exploring strategic options for Fortrent, Including a potential sale Ramirent and Cramo are exploring strategic options for their equally-held JV Fortrent Only equipment rental company with full offering in Russia and Ukraine Annual net sales of ~ 30 MEUR Capital Markets Day

14 CEO s key Takeaways further performance improvement opportunities still exist Focus on capital-efficient growth will strengthen our ability to create shareholder value We have Good share gain opportunities in particular in eastern Europe and in THE SMB Sector in all segments We can improve The attractiveness of renting by making a step-change improvement in service-levels to our customers Capital Markets Day

15 Q&A Capital Markets Day