Capital Market Day 2009 Scandinavia Mikael Öberg, SVP, Scandinavia 1 CMD 2009 2009 Ramirent
Scandinavia deriving synergies Key account management program for Scandinavian customers Operational excellence synergies Fleet management Tower cranes and hoists strategy 2 CMD2009 2009 Ramirent
3 CMD 2009 2009 Ramirent Capital Market Day 2009 Sweden
Sweden executive summary Large and versatile rental equipment and service offering #2 market position in Sweden Strong track record of organic growth and acquisitions Rapid nationwide brand positioning One of the leading equipment rental companies in Sweden 4 CMD2009 2009 Ramirent
Ramirent Sweden overview One of the leading equipment rental companies in Sweden 2004 operations started when NCC s equipment fleet unit, Altima, was sold to Ramirent Continue to realise market share gains Continue to diversify end markets Selectively entering white spots Key figures: Q1 09 Sales EUR 32.0 (41.7) million EBIT of EUR 5.3 (9.0) million EBIT-margin 16.6 (21.7) % 57 rental outlets 615 employees Part of Group sales Revenue breakdown by customer 26% Construction companies, incl.infrastructure Real estate owners and CM companies 61% Industrial sector Public sector Event companies Focus on brand building and customer diversification 5 CMD2009 2009 Ramirent
Swedens construction output outlook Construction output MEUR % change in real terms 2008 2009F 2010F 2011F Euroconstruct (June 2009) 21,845-2.9% 4.2% -3.1% Byggindustrier 24,196-6,0% 2,0% n/a 6 CMD2009 2009 Ramirent
Impact of slowdown on end markets Construction Non-construction Significant downturn: Residential construction Sharp downturn in Southern and Western parts of Sweden Moderate downturn: Slowdown less pronounced than in construction Small local industrial customers are less affected Industrial maintenance stable Rental prices under pressure: Increased price competition in all product areas Rental prices under pressure: Prices under pressure, but not as severe as in the construction sector Due to over-capacity spot project pricing will increase 7 CMD2009 2009 Ramirent
Significant cost reduction activities Area Action Target Employees Significant downsizing of personnel Downsizing well ahead of market downturn Fleet Trading of overcapacity (where possible) Safeguard strategic level of rental capacity Costs Outscourcing of repairs Reducing all other fixed costs Adjust cost base to current sales levels Focus on turning fixed into variable costs Accounts receivables Sharpen routines for invoicing and collecting of debt Maintain credit losses at a minimum 8 CMD2009 2009 Ramirent
Sweden rightsizing the business 700 650 600 550 500 665 645 624 610 588 Sep 2008 Dec 2008 Jan 2009 Feb 2009 Mar 2009 Number of employees Number of employees reduced by 77 persons since Q3 08 Footprint is largely right for current business 60 40 20 0 57 57 57 57 57 Sep 2008 Dec 2008 Jan 2009 Feb 2009 Mar 2009 Number of outlets 9 CMD2009 2009 Ramirent
Strategic priorities in Sweden Long-term value enhancing strategy Developing the product offering Adjust the product offering towards new customer segments Developing the business model Grow the business Widening the customer base Customer service Broad market presence Fleet management Focus on organic growth Focus on new customer segments Focus on total solutions concepts Online shopping Expanding depot network (temporary depots, strategic acquisitions and organic growth Focus on life cycle costs and utilization, co-op with Group fleet management Expand on strategic places and in strategic product groups 10 CMD2009 2009 Ramirent
Rental industry growth in Sweden Long-term growing industry Rental penetration 70 % Growth drivers are infrastructure programs, industrial activity and increased rental penetration Top 4 rental companies comprise 73% of the market 60 % 50 % 40 % 30 % 20 % 10 % 0 % Europe avg. Finland Denmark Sweden UK Source: ERA 2008 report Size of Swedish rental market Swedish rental market = EUR 0.9 bn MEUR 1000 900 800 700 600 500 400 300 200 100 0 Source: Swedish Rental Ass. 2006 2007 2008 Skanska Maskin Others Lambertsson Cramo Ramirent Continued opportunity for growth and consolidation 11 CMD2009 2009 Ramirent
Expansion in value chain Example of added value services Vitåfors Iggesund Dimension, mounting and dismounting on construction site in Stockholm Heating 15 CMD2009 2009 Ramirent
Sweden Opportunities and challenges Opportunities Challenges Strong brand and culture Still not full grown depot network Possibility for increasing market shares in capital area Further market decline Increased competition from international actors (mainly in south Sweden) Outscourcing of repairs Possibility for increasing market shares in industry 16 CMD2009 2009 Ramirent