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Ramirent Group

Financial statements bulletin2016 GROWTH AND PROFIT IMPROVEMENT IN THE FOURTH QUARTER, FULL-YEAR RESULT IMPActed BY ONE-OFFS - Net sales increased 4.6% in full year and 5.9% in Q4 driven by rental sales growth. Comparable EBITA improved in Q4 and in all segments except Sweden and Europe East for full year. - Reported EBITA and EPS were impacted by one-off costs including asset write-downs and reorganization costs totaling €20.6M for the full year. - Cash flow after investments was negative €20.7M for the full year due to increased gross cape

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Financial statements bulletin2016 GROWTH AND PROFIT IMPROVEMENT IN THE FOURTH QUARTER, FULL-YEAR RESULT IMPActed BY ONE-OFFS TapioKolunsarka, president and CEO Pierre Brorsson, CFO February 17, 2017
Net sales 665.2 (635.6) MEUR, up by 4.6% or 6.1% at comparable FX COMPARABLE EBITA 68.1 (63.4) MEUR or 10.2% (10.0%) of net sales One-offsincl.assetwrite-downs and reorganizationcosts-20.6 MEUR REPORTED EBITA59.2 (66.8) MEUR or 8.9% (10.5%) of net sales Eps EUR 0.20 (0.36) Gross capexMEUR 190.8 (139.2) Cash flowafter investments MEUR −20.7 (−6.3) 2016 highlights FULL-YEAR RESULT IMPActed BY ONE-OFFS Financialstatementsbulletin2016 2 CEO COMMENTS Ramirent outlook for 2017 In 2017, Ramirent’s comparable EBITA is expected to increase from the level in 2016. • We are not pleased with our financial performance in 2016 • We are focused on achieving sustainable profit improvement in 2017 • For 2017, we expect our business environment to remain largely favorable
Reported EPS Comparable EPS Dividend proposal for 2016 Financialstatementsbulletin2016 3 0.35 0.59 0.50 0.30 0.36 0.20 0.34 0.37 0.40 0.40 0.40*) 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 2012 2013 2014 2015 2016E 58% 74% 132% 111%Payout ratio: DPS Earningsper share and dividendper share 2012-2016 *) Board’s proposal 195%* Dividend paid in two equal installments of EUR 0.20/ share in Apr and in Oct 2017 Financialstatementsbulletin2016
Q4 2016 highlights GROWTH AND PROFIT Improved IN THE QUARTER 4 Net sales 180.5 (170.5) MEUR, up by 5.9% or 7.3% at comparable FX COMPARABLE EBITA 21.1 (16.8) MEUR or 11.7% (9.9%) of net sales REPORTED EBITA 21.2 (16.8) MEUR or 11.7% (9.9%) of net sales Eps 0.12 (0.11) EUR Gross capex 47.0 (42.0) MEUR Cash flow after investments 11.1 (5.3) MEUR CEO COMMENTS Thanks to good market and weather conditions, our sales grew. This together with an improved sales mix increased comparable EBITA by 25.5% y-o-y. In Europe Central, the previously announced reorganization actions started to improve profitability. Financialstatementsbulletin2016
We are focused on our Short-term priorities TO deliver improved profitability in 2017 5 1. 2. 3. 4. Reorganizations of non- performing units Improving sales mix through an increased focus on the General Rental Business area Focus on productivity and cost reduction in IT and external materials and services spend Simplification of pricing and development of effective pricing management Financialstatementsbulletin2016
Strengthening our EXECUTIVE management TEAM with a new evp of human resources Ulrika Dunker Executive Vice President, HR B. 1975, Swedish citizen, B. (Ed.) Priorworkingexperience: Nearly 10 years working in different HR positions in the Sandvik Group, most recently as VP Human Resources of Sandvik Construction and of Sandvik Venture. 6Financialstatementsbulletin2016
the equipment rental market is expected to grow in 2017 supported by construction output 7 85 90 95 100 105 110 115 120 125 2014 2015 2016 2017 Construction output (Index 2014 = 100) sweden poland sLOVAKIA czech republic norway denmark finland The baltics +3.4 % +1.3% +2.1 % +2.2% +5.0% +4.5% +1.5% n/a +4.2% +0.9 % +2.5% +2.7% +3.1 % -3.2% +6.2% +1.7% equipment rental 2017E construction 2017E SOURCES:forecon 10/2016(Finland), ERA10/2016AND euroconstruct12/2016 Financialstatementsbulletin2016
FINANCIAL REVIEW 8Financialstatementsbulletin2016
170.5 +8.2 +2.0 -0.2 180.5 140 145 150 155 160 165 170 175 180 185 Q42015 Rentalsales Ancillarysales Salesofequipment Q42016 Q4 16 sales grew driven by good rental sales growth Financialstatementsbulletin2016 9 Net sales* bridgeby segment (MEUR)q4 15 – q4 16 170.5 +6.5 +1.2 +2.3 -0.9 +0.5 +0.4 180.5 140 145 150 155 160 165 170 175 180 185 Q42015 Finland Sweden Norway Denmark EuropeEast Europe Central Q42016 Net sales mix bridge(MEUR)q4 15 – q4 16 *Excluding sales between segments
Sales growth and An improved sales mix contributed to the gross margin improvement Financialstatementsbulletin2016 10 63.5% 62.8% 60.9% 62.7% 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 Q4 Quarterly gross margin Quarterly Netsales split • fourth-quarter gross profit amounted to 113.2 (103.8) MEUR or 62.7% (60.9%) of net sales 62.6% 64.0% 61.4% 62.2% 31.0% 31.3% 34.1% 33.7% 6.5% 4.7% 4.4% 4.1% 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 Q4 Rental sales Ancillary sales Sales of used equipment
11 targeting improveD cost efficiency in external materials & services spend Variable costs (MEUR)and of netsales % fixedcosts (MEUR)and of netsales % 61.4 60.6 62.0 66.6 36.6% 37.7% 36.5% 36.9% 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 Q4 61.1 59.8 66.7 67.2 36.5% 37.2% 39.1% 37.3% 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 Q4 Financialstatementsbulletin2016
12Financialstatementsbulletin2016 3.4 0.7 2.1 10.1% 2.3% 6.8% 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 Q4 1.6 0.8 2.3 11.9% 5.3% 14.8% -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 Q4 -0.8 0.5 0.6 -7.7% 4.4% 6.3% -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 Q4 Profitability Q4 16: Comparable ebita improved in all segments except for EUROPE EAST 10.2 8.3 9.7 18.5% 13.1% 15.1% 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 Q4 finland sweden NORWAY DENMARK EUROPE EAST Europe central MEUR MEUR MEUR MEUR MEURMEUR Comparable EBITA (MEUR) Comparable EBITA margin 2.1 2.1 2.1 22.7% 23.5% 23.0% -5% 0% 5% 10% 15% 20% 25% 30% 35% 40% -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 Q4 5.1 5.7 5.8 13.1% 13.3% 11.8% 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 Q4
Full-year 2016 Comparable Ebita improved in all segments except for Sweden and Europe east Financialstatementsbulletin2016 13 63.4 +2.7 -0.7 +0.6 +1.5 -0.6 +1.1 -0.1 68.1 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 Comparable EBITA 1-122015 Finland Sweden Norway Denmark Europe East Europe Central Itemsnot allocated to segments Comparable EBITA 1-122016 Comparable EBITA1-12 15 – 1-12 16 MEUR Driven by strong volume growth Costs from hub structure development and unfavorable sales mix Lower market activity in Latvia
14 Full-year 2016 Comparable ebita vs. reported Comparable and reported EBITA(MEUR)1-12 2016 68.1 +1.0 -2.4 -5.9 0.0 +0.5 -0.5 -1.7 59.2 40 45 50 55 60 65 70 75 Comparable EBITA 1-12 2016 Finland Sweden Norway Denmark Europe East Europe Central Items not allocated to segments Reported EBITA 1-12 2016 Derecognition of a contingent consideration liability Reassessments of projects and reorganizations Asset write- downs in Temporary Space Reorganization costs in Europe Central and at Group level Financialstatementsbulletin2016 Reclassification of loans in Fortrent Group
15 REPORTED eps improved in Q4 16 Full-year EPS impacted by one-offs Earningsper share (EPS) quarterly 0.13 0.04 0.11 0.12 -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 Q4 (-0.00) Income statement (shortened) MEUR 1-12 16 1-12 15 EBIT 38.4 57.9 Financial income 9.2 13.0 Financial expenses -19.4 -24.1 Total financial income and expenses -10.2 -11.1 EBT 28.1 46.9 Income taxes -6.3 -8.1 PROFIT FOR THE PERIOD 21.8 38.8 EPS (EUR) 0.20 0.36 Comparable EPS excl. one offs (EUR) 0.35 0.33 Financialstatementsbulletin2016
28.5 14.4 35.0 33.9 17.0% 8.9% 20.5% 18.8% 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 Q4 Investments in machinery and equipment Shareof net sales-% 16 Full year machinery capex increased Investments inmachinery and equipment(MEUR) and of net sales DepreciationVERSUS investments INMACHINERY AND EQUIPMENT(MEUR) 165.6 109.8 33.9 26.7 0 50 100 150 200 Investments in machinery and equipmentFY 2016 Depreciation FY 2016 Investments in machinery and equipmentQ4 16 Depreciation Q4 16 Financialstatementsbulletin2016
cash flow from operations (MEUR) Cash flow from investing activities (mEUR) -39.7 -46.0 Q4 15 Q4 16 17 Q4 16 cash flow from operations increased Cash flow after investments (MEUR) 25.2 32.6 5.3 11.1 -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 Q4 Financialstatementsbulletin2016 45.0 57.1 Q4 15 Q4 16
1.1x 1.4x 1.7x 2.0x 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 Q4 Leverage increased according to plan - still remaining within FINANCIAL TARGET Financialstatementsbulletin2016 18 Quarterly Netdebt (MEUR) Quarterly Netdebt to ebitda 206.9 227.1 280.9 345.8 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 Q4 FINANCIAL TARGET: below 2.5x at the end of each fiscal year
100 145 175 75 2017 2018 2019 2020 2021 2022 Debt maturity at the end of 2016 Financialstatementsbulletin2016 19 Interest-bearingliabilitiesq4 16 Interestrate types Q4 16 Insurance companies 4% Commercial papers 45% Bond 29% Floating 43% Fixed 57% Average interest rate 3.2% Average interest rate 0.4% Committedcreditfacilities495.0MEUR Netdebt345.8MEUR Repaymentschedule of interest-bearingliabilities Bond Banks 23%
2016 Outcome of Ramirent’s financial targets 20Financialstatementsbulletin2016 Net sales growth (R12) above GDP* +2%-points RETURN ON EQUITY, ROE (R12) 12% per fiscal year Net debt TO ebitda RATIO (r12) below 2.5x at end of each fiscal year Dividend pay-out ratio at least 40% of Net Profit 6.1% *Total GDP growth in Ramirent countries at 2.0% in 2016 Source:gdpgrowthfrom Handelsbanken, Danske Bank and Nordea reports (at comparable exchange rates) 7.2% (COMPARABLEroe 12.1%) 2.0X 195%
www.ramirent.com Tapio Kolunsarka, President and CEO Pierre Brorsson, EVP and CFO Franciska Janzon, SVP, IR 21Financialstatementsbulletin2016
22 38.7 43.1 49.4 0 10 20 30 40 50 60 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3 Q4 13.1% 13.3% 11.8% 16.8% 16.8% 18.0% 0% 5% 10% 15% 20% 25% Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3 Q4 Comparable EBITA-margin (%) Comparable ROCE (%) R12 Net sales Comparable EBITA margin and comparable ROCE Construction output 2017E Equipment rental market 2017E +3.4% +0.9% # 1 Market position Customer centeRs 56 Fastest growth in Solutions fueled by many scaffolding and weather protection projects as well as good demand in industrial sectors In General Rental sales grew due to continued favorable good underlying demand in the construction sector and favorable weather conditions EBITA increased mainly due to strong sales growth, but was negatively impacted by higher costs and a higher share of services sales. Finland q4 16 Strong sales growth in the quarter Sources:ERA Report2016 and Euroconstruct12/2016 Financialstatementsbulletin2016 Up by 14.6%
23 55.0 63.9 64.6 0 10 20 30 40 50 60 70 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3 Q4 18.5% 13.1% 15.1% 17.4% 14.1% 12.2% 0% 5% 10% 15% 20% Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3 Q4 Comparable EBITA-margin (%) Comparable ROCE (%) R12 Net sales Construction output 2017E Equipment rental market 2017E +1.3% +2.7% # 2 Market position Customer centers 78 Sales growth was supported by favorable weather conditions. In General Rental, sales increased strongly driven by improved demand for all main product groups EBITA driven by net sales growth, a higher share of General Rental in the sales mix and cost control Reorganization of the Scaffolding solutions business continued in the quarter Sweden q4 16 Profitability improved Financialstatementsbulletin2016 Comparable EBITA margin and comparable ROCE Up by 1.2% or 5.9% at comparable exchange rates Sources:ERA Report2016 and Euroconstruct12/2016
24 33.9 29.2 31.5 0 5 10 15 20 25 30 35 40 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3 Q4 10.1% 2.3% 6.8% 10.8% 4.2% 4.1% 0% 5% 10% 15% 20% Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3 Q4 Comparable EBITA-margin (%) Comparable ROCE (%) R12 Net sales Construction output 2017E Equipment rental market 2017E +2.1% +3.1% # 1 Market position Customer centers 42 In General Rental, an improved demand in most of the regions and product groups drove sales growth Sales of used equipment increased mainly due to divestments of highly customized non- standard modules EBITA improved mainly due to net sales growth and improved sales mix. Reorganization of the Scaffolding business was started. norway q4 16 demand for General Rental was fair and Temporary Space business was stabilized Financialstatementsbulletin2016 Comparable EBITA margin and comparable ROCE Up by 7.7% or 4.3% at comparable exchange rates Sources:ERA Report2016 and Euroconstruct12/2016
25 10.6 11.1 10.3 0 2 4 6 8 10 12 14 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3 Q4 -7.7% 4.4% 6.3% -14.9% 1.3% 6.4% -25% -20% -15% -10% -5% 0% 5% 10% 15% Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3 Q4 Comparable EBITA-margin (%) Comparable ROCE (%) R12 Net sales Construction output 2017E Equipment rental market 2017E +2.2% +2.5% # 3 Market position Customer centeRs 13 In General Rental demand picked up towards the end of the quarter In Solutions, sales were affected by certain project completions and more careful project selection to improve profitability Strict control of material and services costs as well as lower repair costs supported profitability denmark q4 16 improving trend in profitability continued Financialstatementsbulletin2016 Comparable EBITA margin and comparable ROCE Down by 7.3% or 7.6% at comparable exchange rates Sources:ERA Report2016 and Euroconstruct12/2016
26 9.2 8.8 9.3 0 2 4 6 8 10 12 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3 Q4 27.0% 21.5% 18.9% 16.2% 15.6% 11.4% 0% 5% 10% 15% 20% 25% 30% 35% Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3 Q4 Comparable EBITA-margin (%) Comparable ROCE (%) R12 Net sales Construction output 2017E Equipment rental market 2017E +5.0% +1.8% # 1 Market position Customer centeRs 43 Effective sales efforts by Estonian and Lithuanian organizations supported the growth in the quarter Sales growth, lower repair and maintenance costs as well as a good customer and product mix supported profitability: Weaker development in Latvia impacted negatively on EBITA. Fortrent: Strong demand in Moscow, slow activity continued in St. Petersburg Europe east q4 16 demand was stable and a good level of profitability was maintained (Russia & Ukraine) Financialstatementsbulletin2016 Comparable EBITA margin and comparable ROCE (THE BAlTICS) Up by 5.9% Sources:ERA Report2016 and Euroconstruct12/2016 TheBaltics
27 13.8 15.3 15.7 0 2 4 6 8 10 12 14 16 18 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3 Q4 11.9% 5.3% 14.8% 4.4% 5.6% 7.2% -15% -10% -5% 0% 5% 10% 15% 20% Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3 Q4 Comparable EBITA-margin (%) Comparable ROCE (%) R12 Net sales Construction output 2017E Equipment rental market 2017E +1.5% +2.6% # 1 Market position Customer centeRs 58 Net sales development was positive in Poland and Slovakia while weak in the Czech Republic Comparable EBITA supported by improved sales mix, pricing and cost-efficiency in maintenance & repair due to reorganization actions As part of reorganization actions the workforce was reduced by approx. 40 employees and a restructuring provision of EUR 0.5 million was booked Europe central q4 16 reorganization actions improved profitability (poLAND) Financialstatementsbulletin2016 Comparable EBITA margin and comparable ROCE Up by 2.6% or 4.8% at comparable exchange rates Sources:ERA Report2016 and Euroconstruct12/2016
28 Full-year 2016 items affecting comparability IACsinEBITA8.9MEUR: • Assetwrite-downs in Temporary Space -5.9 MEUR (Norway) • Projectreassessmentsin Scaffolding solutions business - 2.2 MEUR (Sweden) • Reorganizationcosts-1.7 MEUR (HQ, Swedenand Europe Central) • Derecognitionof contingentconsiderationliability +1.0 MEUR (Finland) • Reclassificationof loans +0.5 MEUR (Fortrent) AdditionalIACsinEBIT11.7MEUR: • Write-downsof intangible assets due to discontinuing roll-out plan of commonbusiness platform (mainly ERP) outside Scandinavia -10.9 MEUR • Impairment loss of -0.8 MEUR from investment in Temporary Space (Norway) 11.7 10.4 IACs 1-12 2016 Asset write-downs and reorganization costs Write-downs of intangible assets and investments 22.1MEUR Financialstatementsbulletin2016 Excl. +1.0 MEUR derecognition of contingent consideration liability and +0.5 MEUR IAC in Fortrent Group 4.3 MEUR tax benefit impact of Asset write-downs and reorganization costs *IACs: Items affecting comparability
Q4 16 Comparable Ebita improved Financialstatementsbulletin2016 29 16.8 +0.1 +1.4 +1.5 +0.2 +0.0 +1.5 -0.4 21.1 0 2 4 6 8 10 12 14 16 18 20 22 24 26 Comparable EBITA Q4 2015 Finland Sweden Norway Denmark Europe East Europe Central Itemsnot allocated to segments Comparable EBITA Q4 2016 Comparable EBITAq4 15 – Q416 MEUR Driven by net sales growth, a higher share of General Rental and stabilizing costs Driven by net sales growth and improved sales mix Driven by improved sales mix, pricing and lower maintenance & repair costs
RamirentisaleadingequipmentrentalsolutionsGROUP servingalargecustomerbase 30 market leader in 8 countries ~2,700 employees ~150,000 customers 290 locations in 10 countries 25,000 equipmenttypes 665 MEUR annual sales (2016) Russia andUkraine presencethrough JV Fortrent Financialstatementsbulletin2016
Temporary spacesafety Merchandise sales training A General rental company with a wide PRODUCT range 31 Machines & equipment services Lightmachinery Heavymachinery lifts Tower cranes & hoists Power & heating planning Logisticsandfuel services Site services Scaffolding& Weather protection Financialstatementsbulletin2016
Ramirentholdsawell-balancedbusinessportfolio 32 Salessplitby segment 1-12/16 Salessplitby business area 1-12/16 Salessplitby customer sector 1-12/16 Sweden 35% finland 27% Norway 18% denmark 6% e. east 5% e. central 8% General rental 64% Solutions 31% Temporary space 5% Construction 51% Industrial 19% Services & retail 23% other 3% Public sector 3% households 2% Financialstatementsbulletin2016
• Machinesrentedwith planning/installation/ demobilizationservices • Growthespeciallyinlargeand complexconstructionprojects • Differentiates Ramirentfrom smaller competitors businessmixcoversthreetypesofbusinesses, allofwhichhavegrowthpotential 33 • Retail-type business with mostly machineryrental • Typicalrentallengthafew days/weeks • Corebusiness thatenables thebroad fleet, network andorganization • High-classtemporary space solutionsfor office, accommodationandpublic sectorneeds • Typicallylongermulti-year rentallengths • Complementary offering to equipment rental Share of Group sales GENERAL RENTAL SOLUTIONS TEMPORARY SPACE Financialstatementsbulletin2016
BENEFITS OF rentING iMPROVED productivity 34 ECO-EFFICIENCY • Environmental loading is reduced if more people use the same machine flexibility • Proximity • Delivery on site • Easier and quicker to rent versus buying Productivity • State-of-the art equipment • Right machine for the task • Use it when you need it • Improved cost control • Release of capital for core business safety • Pre-rental safety check • Regulation compliance • Well maintained fleet Financialstatementsbulletin2016
Nordicconstructionorderbooksgrewby16.9% atcomparableexchangeratesinthefourthquarter 35Financialstatementsbulletin2016 NCC VeidekkeSkanska YIT Lemminkäinen SRV Changein orderbooks y-o-y PEAB Ramirent'ssales growthat comparable exchangerates -40% -20% 0% 20% 40% 60% 0 5 10 15 20 25 Q1 2012 Q2 Q3 Q4 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3 Q4 OrderbookdevelopmentinthenordicconstructionsectorEUR billion
36Financialstatementsbulletin2016Source: Europeanrental association10/2016 RentalpenetrationinEurope –SwedenandNorwayamongthetopthree 0.5% 0.7% 0.7% 0.7% 0.8% 0.8% 1.1% 1.2% 1.6% 1.6% 1.6% 1.6% 1.8% 2.6% 3.5% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% Poland Spain The Czech Republic Switzerland Austria Italy Belgium The Netherlands Denmark Finland France Germany Norway United Kingdom Sweden • European equipment rental market size app. EUR 24 billion • Fragmented industry – over 15,000 rental companies • Average rental penetration in Europe at 1.6% • European equipment rental market grew by 2.8% in 2016 and is expected to grow by 1.9% in 2017 Rentalpenetrationrate: RentalTurnover/Totalconstructionoutput Lowpenetration 0.0%–1.0% Mediumpenetration 1.0%–3.0% Highpenetration >3.0% Rentalpenetrationratebycountry
RamirentStrategysummary 37 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 Financialstatementsbulletin2016

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Rr q4 2016_presentation_final

  • 1. Financial statements bulletin2016 GROWTH AND PROFIT IMPROVEMENT IN THE FOURTH QUARTER, FULL-YEAR RESULT IMPActed BY ONE-OFFS TapioKolunsarka, president and CEO Pierre Brorsson, CFO February 17, 2017
  • 2. Net sales 665.2 (635.6) MEUR, up by 4.6% or 6.1% at comparable FX COMPARABLE EBITA 68.1 (63.4) MEUR or 10.2% (10.0%) of net sales One-offsincl.assetwrite-downs and reorganizationcosts-20.6 MEUR REPORTED EBITA59.2 (66.8) MEUR or 8.9% (10.5%) of net sales Eps EUR 0.20 (0.36) Gross capexMEUR 190.8 (139.2) Cash flowafter investments MEUR −20.7 (−6.3) 2016 highlights FULL-YEAR RESULT IMPActed BY ONE-OFFS Financialstatementsbulletin2016 2 CEO COMMENTS Ramirent outlook for 2017 In 2017, Ramirent’s comparable EBITA is expected to increase from the level in 2016. • We are not pleased with our financial performance in 2016 • We are focused on achieving sustainable profit improvement in 2017 • For 2017, we expect our business environment to remain largely favorable
  • 3. Reported EPS Comparable EPS Dividend proposal for 2016 Financialstatementsbulletin2016 3 0.35 0.59 0.50 0.30 0.36 0.20 0.34 0.37 0.40 0.40 0.40*) 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 2012 2013 2014 2015 2016E 58% 74% 132% 111%Payout ratio: DPS Earningsper share and dividendper share 2012-2016 *) Board’s proposal 195%* Dividend paid in two equal installments of EUR 0.20/ share in Apr and in Oct 2017 Financialstatementsbulletin2016
  • 4. Q4 2016 highlights GROWTH AND PROFIT Improved IN THE QUARTER 4 Net sales 180.5 (170.5) MEUR, up by 5.9% or 7.3% at comparable FX COMPARABLE EBITA 21.1 (16.8) MEUR or 11.7% (9.9%) of net sales REPORTED EBITA 21.2 (16.8) MEUR or 11.7% (9.9%) of net sales Eps 0.12 (0.11) EUR Gross capex 47.0 (42.0) MEUR Cash flow after investments 11.1 (5.3) MEUR CEO COMMENTS Thanks to good market and weather conditions, our sales grew. This together with an improved sales mix increased comparable EBITA by 25.5% y-o-y. In Europe Central, the previously announced reorganization actions started to improve profitability. Financialstatementsbulletin2016
  • 5. We are focused on our Short-term priorities TO deliver improved profitability in 2017 5 1. 2. 3. 4. Reorganizations of non- performing units Improving sales mix through an increased focus on the General Rental Business area Focus on productivity and cost reduction in IT and external materials and services spend Simplification of pricing and development of effective pricing management Financialstatementsbulletin2016
  • 6. Strengthening our EXECUTIVE management TEAM with a new evp of human resources Ulrika Dunker Executive Vice President, HR B. 1975, Swedish citizen, B. (Ed.) Priorworkingexperience: Nearly 10 years working in different HR positions in the Sandvik Group, most recently as VP Human Resources of Sandvik Construction and of Sandvik Venture. 6Financialstatementsbulletin2016
  • 7. the equipment rental market is expected to grow in 2017 supported by construction output 7 85 90 95 100 105 110 115 120 125 2014 2015 2016 2017 Construction output (Index 2014 = 100) sweden poland sLOVAKIA czech republic norway denmark finland The baltics +3.4 % +1.3% +2.1 % +2.2% +5.0% +4.5% +1.5% n/a +4.2% +0.9 % +2.5% +2.7% +3.1 % -3.2% +6.2% +1.7% equipment rental 2017E construction 2017E SOURCES:forecon 10/2016(Finland), ERA10/2016AND euroconstruct12/2016 Financialstatementsbulletin2016
  • 9. 170.5 +8.2 +2.0 -0.2 180.5 140 145 150 155 160 165 170 175 180 185 Q42015 Rentalsales Ancillarysales Salesofequipment Q42016 Q4 16 sales grew driven by good rental sales growth Financialstatementsbulletin2016 9 Net sales* bridgeby segment (MEUR)q4 15 – q4 16 170.5 +6.5 +1.2 +2.3 -0.9 +0.5 +0.4 180.5 140 145 150 155 160 165 170 175 180 185 Q42015 Finland Sweden Norway Denmark EuropeEast Europe Central Q42016 Net sales mix bridge(MEUR)q4 15 – q4 16 *Excluding sales between segments
  • 10. Sales growth and An improved sales mix contributed to the gross margin improvement Financialstatementsbulletin2016 10 63.5% 62.8% 60.9% 62.7% 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 Q4 Quarterly gross margin Quarterly Netsales split • fourth-quarter gross profit amounted to 113.2 (103.8) MEUR or 62.7% (60.9%) of net sales 62.6% 64.0% 61.4% 62.2% 31.0% 31.3% 34.1% 33.7% 6.5% 4.7% 4.4% 4.1% 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 Q4 Rental sales Ancillary sales Sales of used equipment
  • 11. 11 targeting improveD cost efficiency in external materials & services spend Variable costs (MEUR)and of netsales % fixedcosts (MEUR)and of netsales % 61.4 60.6 62.0 66.6 36.6% 37.7% 36.5% 36.9% 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 Q4 61.1 59.8 66.7 67.2 36.5% 37.2% 39.1% 37.3% 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 Q4 Financialstatementsbulletin2016
  • 12. 12Financialstatementsbulletin2016 3.4 0.7 2.1 10.1% 2.3% 6.8% 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 Q4 1.6 0.8 2.3 11.9% 5.3% 14.8% -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 Q4 -0.8 0.5 0.6 -7.7% 4.4% 6.3% -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 Q4 Profitability Q4 16: Comparable ebita improved in all segments except for EUROPE EAST 10.2 8.3 9.7 18.5% 13.1% 15.1% 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 Q4 finland sweden NORWAY DENMARK EUROPE EAST Europe central MEUR MEUR MEUR MEUR MEURMEUR Comparable EBITA (MEUR) Comparable EBITA margin 2.1 2.1 2.1 22.7% 23.5% 23.0% -5% 0% 5% 10% 15% 20% 25% 30% 35% 40% -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 Q4 5.1 5.7 5.8 13.1% 13.3% 11.8% 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 Q4
  • 13. Full-year 2016 Comparable Ebita improved in all segments except for Sweden and Europe east Financialstatementsbulletin2016 13 63.4 +2.7 -0.7 +0.6 +1.5 -0.6 +1.1 -0.1 68.1 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 Comparable EBITA 1-122015 Finland Sweden Norway Denmark Europe East Europe Central Itemsnot allocated to segments Comparable EBITA 1-122016 Comparable EBITA1-12 15 – 1-12 16 MEUR Driven by strong volume growth Costs from hub structure development and unfavorable sales mix Lower market activity in Latvia
  • 14. 14 Full-year 2016 Comparable ebita vs. reported Comparable and reported EBITA(MEUR)1-12 2016 68.1 +1.0 -2.4 -5.9 0.0 +0.5 -0.5 -1.7 59.2 40 45 50 55 60 65 70 75 Comparable EBITA 1-12 2016 Finland Sweden Norway Denmark Europe East Europe Central Items not allocated to segments Reported EBITA 1-12 2016 Derecognition of a contingent consideration liability Reassessments of projects and reorganizations Asset write- downs in Temporary Space Reorganization costs in Europe Central and at Group level Financialstatementsbulletin2016 Reclassification of loans in Fortrent Group
  • 15. 15 REPORTED eps improved in Q4 16 Full-year EPS impacted by one-offs Earningsper share (EPS) quarterly 0.13 0.04 0.11 0.12 -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 Q4 (-0.00) Income statement (shortened) MEUR 1-12 16 1-12 15 EBIT 38.4 57.9 Financial income 9.2 13.0 Financial expenses -19.4 -24.1 Total financial income and expenses -10.2 -11.1 EBT 28.1 46.9 Income taxes -6.3 -8.1 PROFIT FOR THE PERIOD 21.8 38.8 EPS (EUR) 0.20 0.36 Comparable EPS excl. one offs (EUR) 0.35 0.33 Financialstatementsbulletin2016
  • 16. 28.5 14.4 35.0 33.9 17.0% 8.9% 20.5% 18.8% 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 Q4 Investments in machinery and equipment Shareof net sales-% 16 Full year machinery capex increased Investments inmachinery and equipment(MEUR) and of net sales DepreciationVERSUS investments INMACHINERY AND EQUIPMENT(MEUR) 165.6 109.8 33.9 26.7 0 50 100 150 200 Investments in machinery and equipmentFY 2016 Depreciation FY 2016 Investments in machinery and equipmentQ4 16 Depreciation Q4 16 Financialstatementsbulletin2016
  • 17. cash flow from operations (MEUR) Cash flow from investing activities (mEUR) -39.7 -46.0 Q4 15 Q4 16 17 Q4 16 cash flow from operations increased Cash flow after investments (MEUR) 25.2 32.6 5.3 11.1 -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 Q4 Financialstatementsbulletin2016 45.0 57.1 Q4 15 Q4 16
  • 18. 1.1x 1.4x 1.7x 2.0x 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 Q4 Leverage increased according to plan - still remaining within FINANCIAL TARGET Financialstatementsbulletin2016 18 Quarterly Netdebt (MEUR) Quarterly Netdebt to ebitda 206.9 227.1 280.9 345.8 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 Q4 FINANCIAL TARGET: below 2.5x at the end of each fiscal year
  • 19. 100 145 175 75 2017 2018 2019 2020 2021 2022 Debt maturity at the end of 2016 Financialstatementsbulletin2016 19 Interest-bearingliabilitiesq4 16 Interestrate types Q4 16 Insurance companies 4% Commercial papers 45% Bond 29% Floating 43% Fixed 57% Average interest rate 3.2% Average interest rate 0.4% Committedcreditfacilities495.0MEUR Netdebt345.8MEUR Repaymentschedule of interest-bearingliabilities Bond Banks 23%
  • 20. 2016 Outcome of Ramirent’s financial targets 20Financialstatementsbulletin2016 Net sales growth (R12) above GDP* +2%-points RETURN ON EQUITY, ROE (R12) 12% per fiscal year Net debt TO ebitda RATIO (r12) below 2.5x at end of each fiscal year Dividend pay-out ratio at least 40% of Net Profit 6.1% *Total GDP growth in Ramirent countries at 2.0% in 2016 Source:gdpgrowthfrom Handelsbanken, Danske Bank and Nordea reports (at comparable exchange rates) 7.2% (COMPARABLEroe 12.1%) 2.0X 195%
  • 21. www.ramirent.com Tapio Kolunsarka, President and CEO Pierre Brorsson, EVP and CFO Franciska Janzon, SVP, IR 21Financialstatementsbulletin2016
  • 22. 22 38.7 43.1 49.4 0 10 20 30 40 50 60 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3 Q4 13.1% 13.3% 11.8% 16.8% 16.8% 18.0% 0% 5% 10% 15% 20% 25% Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3 Q4 Comparable EBITA-margin (%) Comparable ROCE (%) R12 Net sales Comparable EBITA margin and comparable ROCE Construction output 2017E Equipment rental market 2017E +3.4% +0.9% # 1 Market position Customer centeRs 56 Fastest growth in Solutions fueled by many scaffolding and weather protection projects as well as good demand in industrial sectors In General Rental sales grew due to continued favorable good underlying demand in the construction sector and favorable weather conditions EBITA increased mainly due to strong sales growth, but was negatively impacted by higher costs and a higher share of services sales. Finland q4 16 Strong sales growth in the quarter Sources:ERA Report2016 and Euroconstruct12/2016 Financialstatementsbulletin2016 Up by 14.6%
  • 23. 23 55.0 63.9 64.6 0 10 20 30 40 50 60 70 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3 Q4 18.5% 13.1% 15.1% 17.4% 14.1% 12.2% 0% 5% 10% 15% 20% Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3 Q4 Comparable EBITA-margin (%) Comparable ROCE (%) R12 Net sales Construction output 2017E Equipment rental market 2017E +1.3% +2.7% # 2 Market position Customer centers 78 Sales growth was supported by favorable weather conditions. In General Rental, sales increased strongly driven by improved demand for all main product groups EBITA driven by net sales growth, a higher share of General Rental in the sales mix and cost control Reorganization of the Scaffolding solutions business continued in the quarter Sweden q4 16 Profitability improved Financialstatementsbulletin2016 Comparable EBITA margin and comparable ROCE Up by 1.2% or 5.9% at comparable exchange rates Sources:ERA Report2016 and Euroconstruct12/2016
  • 24. 24 33.9 29.2 31.5 0 5 10 15 20 25 30 35 40 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3 Q4 10.1% 2.3% 6.8% 10.8% 4.2% 4.1% 0% 5% 10% 15% 20% Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3 Q4 Comparable EBITA-margin (%) Comparable ROCE (%) R12 Net sales Construction output 2017E Equipment rental market 2017E +2.1% +3.1% # 1 Market position Customer centers 42 In General Rental, an improved demand in most of the regions and product groups drove sales growth Sales of used equipment increased mainly due to divestments of highly customized non- standard modules EBITA improved mainly due to net sales growth and improved sales mix. Reorganization of the Scaffolding business was started. norway q4 16 demand for General Rental was fair and Temporary Space business was stabilized Financialstatementsbulletin2016 Comparable EBITA margin and comparable ROCE Up by 7.7% or 4.3% at comparable exchange rates Sources:ERA Report2016 and Euroconstruct12/2016
  • 25. 25 10.6 11.1 10.3 0 2 4 6 8 10 12 14 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3 Q4 -7.7% 4.4% 6.3% -14.9% 1.3% 6.4% -25% -20% -15% -10% -5% 0% 5% 10% 15% Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3 Q4 Comparable EBITA-margin (%) Comparable ROCE (%) R12 Net sales Construction output 2017E Equipment rental market 2017E +2.2% +2.5% # 3 Market position Customer centeRs 13 In General Rental demand picked up towards the end of the quarter In Solutions, sales were affected by certain project completions and more careful project selection to improve profitability Strict control of material and services costs as well as lower repair costs supported profitability denmark q4 16 improving trend in profitability continued Financialstatementsbulletin2016 Comparable EBITA margin and comparable ROCE Down by 7.3% or 7.6% at comparable exchange rates Sources:ERA Report2016 and Euroconstruct12/2016
  • 26. 26 9.2 8.8 9.3 0 2 4 6 8 10 12 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3 Q4 27.0% 21.5% 18.9% 16.2% 15.6% 11.4% 0% 5% 10% 15% 20% 25% 30% 35% Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3 Q4 Comparable EBITA-margin (%) Comparable ROCE (%) R12 Net sales Construction output 2017E Equipment rental market 2017E +5.0% +1.8% # 1 Market position Customer centeRs 43 Effective sales efforts by Estonian and Lithuanian organizations supported the growth in the quarter Sales growth, lower repair and maintenance costs as well as a good customer and product mix supported profitability: Weaker development in Latvia impacted negatively on EBITA. Fortrent: Strong demand in Moscow, slow activity continued in St. Petersburg Europe east q4 16 demand was stable and a good level of profitability was maintained (Russia & Ukraine) Financialstatementsbulletin2016 Comparable EBITA margin and comparable ROCE (THE BAlTICS) Up by 5.9% Sources:ERA Report2016 and Euroconstruct12/2016 TheBaltics
  • 27. 27 13.8 15.3 15.7 0 2 4 6 8 10 12 14 16 18 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3 Q4 11.9% 5.3% 14.8% 4.4% 5.6% 7.2% -15% -10% -5% 0% 5% 10% 15% 20% Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3 Q4 Comparable EBITA-margin (%) Comparable ROCE (%) R12 Net sales Construction output 2017E Equipment rental market 2017E +1.5% +2.6% # 1 Market position Customer centeRs 58 Net sales development was positive in Poland and Slovakia while weak in the Czech Republic Comparable EBITA supported by improved sales mix, pricing and cost-efficiency in maintenance & repair due to reorganization actions As part of reorganization actions the workforce was reduced by approx. 40 employees and a restructuring provision of EUR 0.5 million was booked Europe central q4 16 reorganization actions improved profitability (poLAND) Financialstatementsbulletin2016 Comparable EBITA margin and comparable ROCE Up by 2.6% or 4.8% at comparable exchange rates Sources:ERA Report2016 and Euroconstruct12/2016
  • 28. 28 Full-year 2016 items affecting comparability IACsinEBITA8.9MEUR: • Assetwrite-downs in Temporary Space -5.9 MEUR (Norway) • Projectreassessmentsin Scaffolding solutions business - 2.2 MEUR (Sweden) • Reorganizationcosts-1.7 MEUR (HQ, Swedenand Europe Central) • Derecognitionof contingentconsiderationliability +1.0 MEUR (Finland) • Reclassificationof loans +0.5 MEUR (Fortrent) AdditionalIACsinEBIT11.7MEUR: • Write-downsof intangible assets due to discontinuing roll-out plan of commonbusiness platform (mainly ERP) outside Scandinavia -10.9 MEUR • Impairment loss of -0.8 MEUR from investment in Temporary Space (Norway) 11.7 10.4 IACs 1-12 2016 Asset write-downs and reorganization costs Write-downs of intangible assets and investments 22.1MEUR Financialstatementsbulletin2016 Excl. +1.0 MEUR derecognition of contingent consideration liability and +0.5 MEUR IAC in Fortrent Group 4.3 MEUR tax benefit impact of Asset write-downs and reorganization costs *IACs: Items affecting comparability
  • 29. Q4 16 Comparable Ebita improved Financialstatementsbulletin2016 29 16.8 +0.1 +1.4 +1.5 +0.2 +0.0 +1.5 -0.4 21.1 0 2 4 6 8 10 12 14 16 18 20 22 24 26 Comparable EBITA Q4 2015 Finland Sweden Norway Denmark Europe East Europe Central Itemsnot allocated to segments Comparable EBITA Q4 2016 Comparable EBITAq4 15 – Q416 MEUR Driven by net sales growth, a higher share of General Rental and stabilizing costs Driven by net sales growth and improved sales mix Driven by improved sales mix, pricing and lower maintenance & repair costs
  • 30. RamirentisaleadingequipmentrentalsolutionsGROUP servingalargecustomerbase 30 market leader in 8 countries ~2,700 employees ~150,000 customers 290 locations in 10 countries 25,000 equipmenttypes 665 MEUR annual sales (2016) Russia andUkraine presencethrough JV Fortrent Financialstatementsbulletin2016
  • 31. Temporary spacesafety Merchandise sales training A General rental company with a wide PRODUCT range 31 Machines & equipment services Lightmachinery Heavymachinery lifts Tower cranes & hoists Power & heating planning Logisticsandfuel services Site services Scaffolding& Weather protection Financialstatementsbulletin2016
  • 32. Ramirentholdsawell-balancedbusinessportfolio 32 Salessplitby segment 1-12/16 Salessplitby business area 1-12/16 Salessplitby customer sector 1-12/16 Sweden 35% finland 27% Norway 18% denmark 6% e. east 5% e. central 8% General rental 64% Solutions 31% Temporary space 5% Construction 51% Industrial 19% Services & retail 23% other 3% Public sector 3% households 2% Financialstatementsbulletin2016
  • 33. • Machinesrentedwith planning/installation/ demobilizationservices • Growthespeciallyinlargeand complexconstructionprojects • Differentiates Ramirentfrom smaller competitors businessmixcoversthreetypesofbusinesses, allofwhichhavegrowthpotential 33 • Retail-type business with mostly machineryrental • Typicalrentallengthafew days/weeks • Corebusiness thatenables thebroad fleet, network andorganization • High-classtemporary space solutionsfor office, accommodationandpublic sectorneeds • Typicallylongermulti-year rentallengths • Complementary offering to equipment rental Share of Group sales GENERAL RENTAL SOLUTIONS TEMPORARY SPACE Financialstatementsbulletin2016
  • 34. BENEFITS OF rentING iMPROVED productivity 34 ECO-EFFICIENCY • Environmental loading is reduced if more people use the same machine flexibility • Proximity • Delivery on site • Easier and quicker to rent versus buying Productivity • State-of-the art equipment • Right machine for the task • Use it when you need it • Improved cost control • Release of capital for core business safety • Pre-rental safety check • Regulation compliance • Well maintained fleet Financialstatementsbulletin2016
  • 35. Nordicconstructionorderbooksgrewby16.9% atcomparableexchangeratesinthefourthquarter 35Financialstatementsbulletin2016 NCC VeidekkeSkanska YIT Lemminkäinen SRV Changein orderbooks y-o-y PEAB Ramirent'ssales growthat comparable exchangerates -40% -20% 0% 20% 40% 60% 0 5 10 15 20 25 Q1 2012 Q2 Q3 Q4 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2016 Q2 Q3 Q4 OrderbookdevelopmentinthenordicconstructionsectorEUR billion
  • 36. 36Financialstatementsbulletin2016Source: Europeanrental association10/2016 RentalpenetrationinEurope –SwedenandNorwayamongthetopthree 0.5% 0.7% 0.7% 0.7% 0.8% 0.8% 1.1% 1.2% 1.6% 1.6% 1.6% 1.6% 1.8% 2.6% 3.5% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% Poland Spain The Czech Republic Switzerland Austria Italy Belgium The Netherlands Denmark Finland France Germany Norway United Kingdom Sweden • European equipment rental market size app. EUR 24 billion • Fragmented industry – over 15,000 rental companies • Average rental penetration in Europe at 1.6% • European equipment rental market grew by 2.8% in 2016 and is expected to grow by 1.9% in 2017 Rentalpenetrationrate: RentalTurnover/Totalconstructionoutput Lowpenetration 0.0%–1.0% Mediumpenetration 1.0%–3.0% Highpenetration >3.0% Rentalpenetrationratebycountry
  • 37. RamirentStrategysummary 37 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 Financialstatementsbulletin2016