Rr q3 2016_presentation_final_final
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The document discusses Ramirent's financial results and operations. It states that net sales increased 2.5% in comparable currencies but EBITA margin was lower than in 2015. It also notes that profitability development did not reach its potential in Q3 and they will now focus on short-term performance improvements and turnarounds in parts of the business where profitability is insufficient.
Rr q3 2016_presentation_final_final
- 2. 169.2 (165.1) MEUR, up by 2.5% and 3.3% at comparable exchange rates 22.2 (25.3) MEUR or 13.1% (15.3%) of net sales and reorganizationcosts20.4 MEUR 14.2 (24.8) MEUR or 8.4% (15.0%) of net sales 43.3 (32.2) MEUR, up 34.5% after investments -1.3 (9.7) MEUR In 2016, Ramirent’s net sales in local currencies are expected to increase from the level in 2015 and EBITA- margin is expected to be lower than in 2015. Our profitability development did not reach its potential in Q3. We will now focus on our short- term performance improvement and turnaround activities in parts of our business, where the profitability is not sufficient.
- 3. 5.9 2.4 2.2 17.3% 8.2% 7.0% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3 1.6 2.2 2.2 11.3% 14.0% 14.0% -16% -12% -8% -4% 0% 4% 8% 12% 16% -5.0 -4.0 -3.0 -2.0 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3 -0.1 1.4 0.8 -1.2% 12.1% 7.4% -16% -12% -8% -4% 0% 4% 8% 12% 16% -5.0 -4.0 -3.0 -2.0 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3 8.9 7.7 5.9 17.2% 14.3% 10.4% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3 MEUR MEUR MEUR MEUR MEURMEUR Comparable EBITA (MEUR) Comparable EBITA margin 3.7 3.3 3.2 35.8% 32.4% 31.6% -4% 1% 6% 11% 16% 21% 26% 31% 36% -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3 8.3 9.3 8.2 19.0% 20.4% 17.2% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3
- 8. • Assetwrite-downs inTemporarySpace-5.9 MEUR (Norway) • Projectreassessmentsin Scaffoldingsolutions business-2.2MEUR(Sweden) • Reorganizationcosts-0.7MEUR(Groupand Sweden) • Derecognitionof contingentconsiderationliability +0.7MEURin Finland • Write-downs ofintangibleassets dueto discontinuing roll-outplan of common businessplatform(mainly ERP)outsideScandinavia-10.9MEUR • Impairmentlossof -0.8MEURfrominvestmentin TemporarySpace(Norway) *IACs: Items affecting comparability
- 9. 165.1 +3.6 +0.7 -0.2 169.2 140 145 150 155 160 165 170 175 Q32015 Rentalsales Ancillarysales Salesofequipment Q32016 165.1 +2.0 +3.0 +0.3 -1.0 -0.1 -0.0 169.2 140 145 150 155 160 165 170 175 Q32015 Finland Sweden Norway Denmark EuropeEast EuropeCentral Q32016 *Excluding sales between segments
- 10. 68.8% 67.6% 63.3% 63.0% 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 Q3 • 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 Q3
- 11. 63.7 58.1 55.3 60.7 38.3% 35.5% 33.5% 35.9% 0% 10% 20% 30% 40% 50% 60% 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 Q3 51.9 53.0 60.6 62.7 31.2% 32.4% 36.7% 37.0% 0% 10% 20% 30% 40% 50% 60% 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 Q3
- 12. 0.16 0.17 0.13 -0.02-0.02 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 Q3 (-0.00) EBIT Financial income Financial expenses Total financial income and expenses EBT Income taxes PROFIT FOR THE PERIOD EPS (EUR) Comparable EPS excl. one offs, EUR
- 13. 28.0 21.0 30.8 42.0 16.8% 12.8% 18.6% 24.8% 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 Q3 Investments in machinery and equipment Share of net sales-% 143.8 77.3 43.3 27.0 31.7 0 50 100 150 200 Capital expenditure 1-9 2016 Depreciation excl. asset write- downs 1-9 2016 Capital expenditure Q3 2016 Depreciation excl. asset write- downs Q3 2016 (Committed investments)
- 14. 43.9 41.7 Q3 15 Q3 16 -34.2 -43.1 Q3 15 Q3 16 34.4 13.7 9.7 -1.3 -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 Q3
- 15. 1.1x 1.5x 1.7x 2.2x 0.0 0.5 1.0 1.5 2.0 2.5 3.0 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3 230.3 259.7 286.4 357.3 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 Q3
- 16. 2017 2018 2019 2020 2021 Loans from financial institutions 24% Commercial papers 48% Bond 28% Floating 47% Fixed 53% Average interest rate 3.25% Average interest rate 0.42%
- 17. www.ramirent.com Tapio Kolunsarka, President and CEO Pierre Brorsson, CFO Franciska Janzon, SVP, IR
- 18. above GDP* +2%-points 12% per fiscal year below 2.5x at end of each fiscal year at least 40% of Net Profit *Estimated total GDP growth in Ramirent countries at 2.0% for 2016 (at comparable exchange rates)
- 20. 43.5 45.7 47.6 19.0% 20.4% 17.2% 17.9% 14.9% 16.7% In General Rental, growth was favorable driven by new residential and non- residential construction projects In Solutions, sales development was at a good level in particular in the industry sector EBITA was supported by favorable volume growth and a higher share of General Rental in the sales mix, but weighed down by higher fixed costs and depreciation Up by 4.1%
- 21. 52.0 53.8 56.6 14.3% 10.4% 17.3% 15.7% 11.8%17.2% All business areas contributed to sales growth based on strong demand in the construction sector Unfavorable sales mix and continued costs for reorganizing hub structure and higher depreciation costs lowered profitability Actions were started to reorganize the Scaffolding solutions business where profitability has been unsatisfactory Up by 5.3% or 6.2% at comparable exchange rates
- 22. 34.0 29.4 30.9 8.2% 7.0% 17.6% 5.6% 3.3% 9.2% Sales increased mainly in General Rental supported by good demand in most regions Demand in Temporary Space continued to be low and the short- term outlook remains challenging Discontinuation of the highly customized non-standard modules business in Temporary Space and refocusing of the business Up by 5.3% or 7.1% at comparable exchange rates
- 23. 10.1 11.2 10.3 -1.2% 12.1% 7.4% -8.6% -3.2% 5.8% In General Rental, demand remained stable in the construction sector, whereas volume development was slower in Solutions Good demand for temporary space rental continued Cost reduction measures have resulted in a lower cost base in the operations, but lower volumes impacted negatively on profitability Down by 7.9% or 8.1% at comparable exchange rates
- 24. 10.3 10.2 10.1 31.3% 29.8% 27.9% 13.4% 15.6% 11.5% Good sales growth in Estonia, while lower construction activity impacting on sales in Latvia and Lithuania EBITA at a high level in the Baltics supported by increased rental sales and good control of material and services costs Fortrent: Sales growth, price increases and decrease in the cost base supported profitability Down by 1.1%
- 25. 14.2 15.4 15.4 11.3% 14.0% 14.0% 1.7% 7.2% 4.7% In Poland, stable demand in General Rental and good progress in large Solutions projects. In Slovakia and Czech Republic sales development also contributed to growth. EBITA was supported by improved price levels in Poland and Slovakia as well as improved control of material and services costs Reorganizations to be started in the fourth quarter to improve profitability Down by 0.2% but up by 2.3% at comparable exchange rates
- 26. 2007Q1 2007Q2 2007Q3 2007Q4 2008Q1 2008Q2 2008Q3 2008Q4 2009Q1 2009Q2 2009Q3 2009Q4 2010Q1 2010Q2 2010Q3 2010Q4 2011Q1 2011Q2 2011Q3 2011Q4 2012Q1 2012Q2 2012Q3 2012Q4 2013Q1 2013Q2 2013Q3 2013Q4 2014Q1 2014Q2 2014Q3 2014Q4 2015Q1 2015Q2 2015Q3 2015Q4 2016Q1 2016Q2 2016Q3 • Nordic construction order books increased by 11.8% at comparable exchange rates compared to the previous year • Order book growth was driven by large non-residential construction projects in Finland and continued high activity in the Swedish residential and infrastructure markets • Infrastructure construction increasing in Norway, while development is more modest in other sectors NORDICORDERBOOKS(BEUR) ANDCHANGEY-O-Y
- 27. average
- 29. Light machinery Lifts Modules ScaffoldingHeavy machinery Power and heating Tower cranes and hoists SAFE Planning On-site support Rental insurance Business support Merchandise sales Training Ramirent SpaceSolveTM Ramirent AccessSolveTM Ramirent PowerSolve TM Ramirent TotalSolveTM Ramirent SafeSolveTM Ramirent EcoSolveTM / Tryggare Byggare Ramirent ClimateSolve TM
- 31. • Machinesrentedwith planning/installation/ demobilizationservices • Growthespeciallyinlargeand complexconstructionprojects • Differentiates Ramirentfrom smaller competitors • Retail-type business with mostly machineryrental • Typicalrentallengthafew days/weeks • Corebusiness thatenables thebroad fleet, network andorganisation • High-classtemporary space solutionsfor office, accommodationandpublic sectorneeds • Typicallylongermulti-year rentallengths • Complementary offering to equipment rental Share of Group sales
- 32. • European equipment rental market size approx. EUR 24 billion • Fragmented industry – over 15,000 rental companies • Average rental penetration in Europe at 1.6% • European equipment rental market is expected to grow by 2.8% in 2016 and 1.9% in 2017, respectively Lowpenetration 0.0%–1.0% Mediumpenetration 1.0%–3.0% Highpenetration >3.0%
- 33. The leading and 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