leading the way in finland and europe...

Leading the way in Finland and Europe East

Presentation for Ramirent CMD 2011

Kari Aulasmaa, SVP, Finland and Europe East

1 September 2011

1.9.2011 / CMD 2011 / Kari Aulasmaa © 2011 Ramirent

Easy customer accessibility through largest network – 85 depots

Largest and most versatile rental equipment and service offering

#1 market position

Large and well-diversified customer base

3 operational companies

Large service centers and logistic hubs with broad offering in all major cities

2

Ramirent FinlandExecutive summary

Ramirentcustomer centre

Ramirent Finland ltd.

General Rental

Teline-Rami ltd.Scaffolding

Rami-Cranes ltd.Tower-cranes

29

34

41

3128

36 3835

30

37

-5 %

0 %

5 %

10 %

15 %

20 %

0

5

10

15

20

25

30

35

40

45

Q12009

Q2 Q3 Q4 Q12010

Q2 Q3 Q4 Q12011

Q2

Net sales EBIT-%

Q2 2011 Finland

3

MEUR

Highlights Historic financial performance

Q2 January - June Full Year

Finland 2011 2010 Change(EUR)

Change(Local)

2011 2010 Change(EUR)

Change(Local)

2010

Net sales, MEUR 36.5 36.1 1 % 1 % 66.8 64.2 4 % 4 % 136.9

EBIT, MEUR 4.7 4.0 18 % 6.1 3.8 60 % 13.7

EBIT-margin 12.9 % 11.1 % 9.1 % 5.9 % 10.0%

Employees 633 641 -1 % 603

Outlets 85 83 2 % 84

Main growth driver was residential construction, while growth was slowed down by lower activity in shipyards, industrial maintenance and in the private household sector

Profitability improved based on higher utilisation levels and improving pricing environment

Acquisition of weather protection company SuomenSääsuoja Oy

Acquisition of Suomen Sääsuoja Oy

Strategic acquisition for Ramirent Finland

Acquisition closed May 13th 2011

Founded in 2006 as a part of the PekkaNiska- Group

Focused on rental and sales of weather protection equipment

and scaffolding

Customer base consists of construction companies, industrial

plants and events

Enlarge Ramirent’s scaffolding operations to attractive

weather protection market and strengthen position both in

construction and industrial sector

4

Finland vision and key business objectives

Country Finland

Ramirent is a leading rental company in Finland, operating nation-wide as well-known and professional general rental company.

Ramirent is an innovative orchestrator who is capable of adding value to his customers.

Profitable growth via both organic market growth and utilization of outsourcing development and selected acquisitions.

Increasing efficiency through continuous internal process development.

Continuous development of offerings and services.

Development of key account management processes.

Group VisionTo be the leading and most progressive equipment rental solutions company in Europe, setting the benchmark for industry performance and customer service

Key business objectives Sustainable profitability growth

driven by positive top-line development and operational excellence

Reduced risk level through more balanced business portfolio

Common platform for selected processes combined with strong local customer orientation

5

Finland Sales Breakdown

Sales by product group Q2 2011

Construction

51 %

Industry

21 %

Other service

companies16 %

Public

sector 6 %

Households

6 %

Sales by customer sector 2010

6

Other40 %

Tower cranes &

Hoists3 %

Heavy4 %

Modules5 %

Scaffolding6 %

Power & Heating

6 %

SAFE7 %

Light13 %

Lifts16 %

Finland market dynamics and key trends

29 % 29 % 30 % 31 % 31 % 32 % 32 %

0 %

20 %

40 %

60 %

80 %

100 %

2007 2008 2009 2010 2011F 2012F 2013F

Estimated market sizeTotal rental market size, Million EUR

Key market dynamics and trends

• Moderate growth in rental penetration

• Product and service offering expanding

• Customer base will broaden further; highest growth potential in Other services sector

• Renting becoming more and more common way of activity

• Active outsourcing and acquisition trend

• Usage of machines will increase in general

Rental penetration developmentPenetration (%)

7

0

100

200

300

400

500

600

700

2007 2008 2009 2010 2011F 2012F 2013F

Other sectors Construction sector

30 %

27 %20 %

8 %

6 %

6 % 4 %Ramirent

Others

Cramo

Pekka-Niska

Teline-Kataja

YIT

Skanska

Main competitors

Construction outlook

2011 construction growth +5% (RT 04/2011)

2012 estimated growth rate +3% (RT 04/2011)

Growth is driven by residential construction and

renovation while other sectors are stable

Renovation accounts for nearly half of the housing

construction

The outlook of residential construction is softening

in H2/11 – Forecast of new starts dropped from 33

500 down to 31 000 flats

Remarkable investments ongoing in mine-, steel-

and energy industries

8

Construction volume in Finlandindex 2000=100

60

70

80

90

100

110

120

130

140

150

160

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

9

Renovation construction

Residential construction

Infrastructure

Non-residential construction

Source: Statistics Finland, VTT Expert Services Oy

0

100

200

300

400

500

600

700

800

900

1 000

2001 2004 2006 2009 2011

Milj. €

3.5.2011VTT:n laskelma ja ennuste

Rakennuskoneiden ja -kaluston käyttö

talonrakentamisessa

Talonrak. käyttö yht.

Ei-asuinrakennukset

Asuinrakennukset

Korjausrakentaminen

Kiintein 2010 hinnoin

Miillion EUR

Market development of rental equipment used in residential construction in Finland

0

100

200

300

400

500

600

700

800

900

1000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

10

Housing constructionin total

Renovation

Non-residentialconstruction

Source: VTT Forecast 3 May 2011

0

100

200

300

400

500

600

700

800

900

1 000

2001 2004 2006 2009 2011

Milj. €



talonrakentamisessa


Ei-asuinrakennukset

Asuinrakennukset

Korjausrakentaminen


Residential

Rental of construction machinery and equipment market development in Finland

0

100

200

300

400

500

600

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

11

Equipmentrental in total

Residential

Non-residentialconstruction


Miillion EUR

0

100

200

300

400

500

600

700

800

900

1 000

2001 2004 2006 2009 2011

Milj. €



talonrakentamisessa


Ei-asuinrakennukset

Asuinrakennukset

Korjausrakentaminen


Other industries

Rental of construction equipment and tower cranes market development in Finland

80

90

100

110

120

130

140

150

160

170

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

12

Equipmentrental in total

Tower cranes


Miillion EUR

0

100

200

300

400

500

600

700

800

900

1 000

2001 2004 2006 2009 2011

Milj. €



talonrakentamisessa


Ei-asuinrakennukset

Asuinrakennukset

Korjausrakentaminen


2011: 10% Growth expected in equipment rental Forecast of rental of construction equipment and machinery

Value 2010 MEUR

2008 %

2009 %

Change

2010 %

2011 %

2012%

Residential 168 11 % -22 % 4 % 19 % 5 %

Renovation 106 13 % 3 % 5 % 7 % 7 %

Infra 51 3 % 0 % 2 % 1 % 3 %

Industry 77 6 % -17 % 8 % 8 % 7 %

Services 37 3 % -4 % 4 % 5 % 5 %

Consumers 26 4 % 0 % 4 % 4 % 4 %

Public 20 4 % 3 % 2 % 3 % 3 %

Total 486 8 % -11 % 5 % 10 % 5 %

Import 1 000 20 -35


0

100

200

300

400

500

600

700

800

900

1 000

2001 2004 2006 2009 2011

Milj. €



talonrakentamisessa


Ei-asuinrakennukset

Asuinrakennukset

Korjausrakentaminen


Equipment rental by customer sector and product Total market in Finland EUR 486 million

Public4 %

Households5 %

Services8 %

Residential 34 %Renovation

22 %

Infra-structure

11 %

Industry16 %

Rental by customer sector 2010

Tower cranes

5 %Mobile cranes

15 %

Hoists2 %

Power & lighting etc

6 %

Formworks 3 %

Scaffolding and safety

24 %Modules

5 %

Infra machines

11 %

Personnel hoists

13 %

Other16 %

Rental by product 2010

14


0

100

200

300

400

500

600

700

800

900

1 000

2001 2004 2006 2009 2011

Milj. €



talonrakentamisessa


Ei-asuinrakennukset

Asuinrakennukset

Korjausrakentaminen


Ramirent’s positioning as a Dynamic Rental Solutions supplier

Temporary project depot concept for investment

and maintenance project – enlarged in co-

operation with Havator Group in 2010

All inclusive scaffolding service concept

strengthened with weather protection services in

2011

Dust control concept

Temporary electrifying and heating services

Ramirent “Smart” - Access control and working

condition measurement solution for construction

sites

Customer training for safe use of equipment

Strong focus on development of safety concepts

15

Dust control concept – Dust free site

All-inclusive product and service package as response to

tightened requirements in sites (launched June 2009)

Includes equipment, engineering, design, installation,

measuring, maintenance

Underpressured and isolated department with controlled

access – several solutions available

Totally filtered and clean exhaust air

16

Ramirent ”Smart” – Concept for working condition measurement and access control

Remote control system with

electrical control desk

• 3G web connection (full rate)

• Sensor / camera surveillance

Measurement of site

conditions:

• Temperature, humidity,

lightning, power, air quality, etc.

Easy solution for access and

work force control

On-line information 24 h

Cost efficient solution for

common problems in sites

Completes Ramirent’s

traditional solution concepts

17

Opportunities

• Utilization of strengthening

outsourcing trend

• Selective acquisitions offers ways to

strengthen current business.

• Development of product and service

offering creates growth opportunities

• Modern technology and system

development give opportunities to

develop products and improve

efficiency

• Raising penetration and increasing

usage of machines grow rental

industry.

Challenges

• Construction is not growth industry

and industrial production is

decreasing – Growth is limited.

• Capability management – less skilled

work force in the future.

• Development of service business is

always complicate – requires strong

understanding of customer’s

processes and customer’s way of

thinking.

• Newcomers may change stability of

the market.

SegmentOpportunities and challenges

18

Europe East recovery faster than expected

Presentation for Ramirent CMD 2011

Kari Aulasmaa, SVP, Finland and Europe East

1 September 2011

1.9.2011 / CMD 2011 / Kari Aulasmaa © 2011 Ramirent

http://www.ramirent.com.ua/

http://www.ramirent.lv/

http://www.ramirent.co.hu/

http://www.ramirent.ru/

http://www.ramirent.ee/

20

Outlet

Local head office

Re-renting agents

Long experience since 1988

The segment comprises operations in

Estonia, Latvia, Lithuania, Ukraine and

Russia

Best-in-class customer service standards

Modern equipment fleet

Experienced local management

Excellent footprint with 56 depots - 11 new

rental outlets in H1/2011

Largest and most versatile rental equipment

and service offering

# 1 position in Russia and in Baltic

Ramirent East EuropeExecutive summary

Q2 2011 Europe East

21

Growth drivers infrastructure construction in Russia and energy-related investments in Baltics and Ukraine. The positive development continued in the Baltic States, especially in Lithuania, and also in Ukraine

Profitability started to recover with increasing business volumes and higher price levels

New outlets in the Baltics, mainly in Lithuania and Estonia, as well as in the Russian city of Sochi

Historic financial performance

9

12

19

11

8

10

1213

9

13

-40 %

-30 %

-20 %

-10 %

0 %

10 %

20 %

0

5

10

15

20

Q12009

Q2 Q3 Q4 Q12010

Q2 Q3 Q4 Q12011

Q2

Net sales EBIT-%

MEUR

Highlights

Q2 January - June Full Year

Europe East 2011 2010 Change(EUR)

Change(Local)

2011 2010 Change(EUR)

Change(Local)

2010

Net sales, MEUR 13.0 9.5 37 % 40 % 22.4 17.0 32 % 33 % 42.7

EBIT, MEUR 1.0 -1.6 N/A -0.7 -4.0 N/A -3.5

EBIT-margin 7.5 % -16.5 % -3.0 % -23.4 % -8.3 %

Employees 411 394 4 % 392

Outlets 51 45 13 % 48

East Europe vision and key business objectives

East Europe To customers first choice and maintain leading position in the market

To be progressive rental solution supplier and innovative partner for customers

Sustainable and profitable growth

Restore back the high profitability in all countries

Take leading position in all countries where present

Create balanced product and service portfolio

Enlarge customer base

Group VisionTo be the leading and most progressive equipment rental solutions company in Europe, setting the benchmark for industry performance and customer service

Key business objectives Sustainable profitability growth

driven by positive top-line development and operational excellence

Reduced risk level through more balanced business portfolio

Common platform for selected processes combined with strong local customer orientation

22

Europe East Sales Breakdown

Other0,2 %

Cranes & Hoists

6,2 %

Used rental equipment

8,4 %

Heavy15,3 %

Site Units5,5%

Scaffolding5,3 %

Power & Heating

11,7 %

Safe10,2 %

Light13,1 %

Lifts11,6 %

Services, sales and

transport.12,5 %

Sales by product group Q2 2011

Construction

84%

Others

1%

Industry

7%

Public sector

3%Households

5%

Sales by customer sector 2010

23

RAMIRENT IN THE BALTICS

24

Ramirent depot

Shop-in-shop

Head office

Easy access with 41

depots - 4 new rental

outlets in H1/2011

Largest and most versatile rental equipment and service offering

Large and well-diversified customer base

#1 market position

Baltic’s market dynamics and key trends

28 % 27 % 27 % 26 % 27 % 27 % 28 %

0 %

20 %

40 %

60 %

80 %

100 %

2007 2008 2009 2010 2011F 2012F 2013F



• Outsourcing trend is expected to strengthen

• Positive price development will continue after recession

• After adjustments during crises utilizations are on good levels

• The growth driven by renovation and infra-and energy related investments

• Higher seasonality as in good years

• Importance of regions outside capital areas is increasingRental penetration development

Penetration (%)

25

0

50

100

150

200

2007 2008 2009 2010 2011F 2012F 2013F

Construction sector

Main competitors

Cramo

22%

Ramirent

22 %

Peri

12 %

Storent

6 %

Pekkaniska

2 %

Others

37 %

Cramo

LEVEL OF SERVICE CONTENT

GE

OG

RA

PH

IC C

OV

AR

AG

E

Single product group One-stop-shop

Local

Nation w

ide

Value adding services

Regio

nal

International Equipment

rental company

National Equipment

rental company

Other (e.g. OEMs,

customers, etc.)

Potential new

entrant

26

Ramirent

Stats

Storent

Competitive landscape in Baltics

Doka

Peri

Pekka-niska

Teline-kataja

Rendimeister

RAMIRENT IN UKRAINE

27

Ramirent depot

Local agent

Head office

9 outlets -6 new rental

outlets in H1/2011

2 local agents

One and only international general rental company in market

Shop-in shop concept with global D.I.Y. stores (Leroy Merlin, OBI, Praktiker)

#4 market position (#1 in general rental)

Ukraine market dynamics and key trends

4 % 5 % 5 % 6 % 7 % 7 %

0 %

20 %

40 %

60 %

80 %

100 %

2008 2009 2010 2011F 2012F 2013F



• Main growth drivers: still nearly Greenfield market, large construction needs, size of the market; absence of competition; lack of modern equipment; low availability of residential, office, retail and logistic premises

• Consolidation is expected.

• As the economic has improved, non-residential and engineering projects are increasing

• Euro 2012 supports the growth (i.e. the construction and modernization of roads, railway lines, airports, sports facilities and hotels) Rental penetration development

Penetration (%)

28

0

20

40

60

80

100

2008 2009 2010 2011F 2012F 2013F

Main competitors

2%4%

4%

4%

5%

7%

9%

65%

Pekkaniska

Madek

Plettak

Rental Center

Ramirent

Doka

Peri

Others

29

Ramirent in Russia

Ramirent has 6 outlets in Russia:

• 3 depots in St Petersburg

• 2 depots in Moscow

• 1 depot in Sochi (opened 04/2011)

Agent network:

• Pskov, Velikiy Novgorod, Astrahan,

Rostov-on-Don, Nizniy Novgorod,

Yaroslavl’, Ryazan’, Murmansk,

Ekaterinburg, Krasnodarskiy,

Tyumen’, Uralsky and Siberian,

Sosnovy bor, Velikie Luki, Volgograd

#1 Market position

Ramirent depot

Agent

Head office

Russia market dynamics and key trends

15 % 14 % 14 % 15 % 16 % 17 %

0 %

20 %

40 %

60 %

80 %

100 %

2008 2009 2010 2011F 2012F 2013F



• 80% of the total market is in European side

• Market is centralized to big cities in 5 regions

• Outside big centers penetration is very low

• Russian rental association started 2010

• Local companies have limited offering and few services

• Rental of equipment includes often operator

• Russian rental association started 2010

Rental penetration developmentPenetration (%)

30

0

200

400

600

800

1 000

1 200

1 400

2008 2009 2010 2011F 2012F 2013F

Main competitors

Ramirent Rentacrane Pekkaniska Cramo Ltech Sautec Other

LEVEL OF SERVICE CONTENT

GE

OG

RA

PH

IC

CO

VA

RA

GE

Single product group One-stop-shop

Local

Nation w

ide

Value adding services

Regio

nal

International Equipmentrental company

National Equipmentrental company

Other (e.g. OEMs,customers, etc.)

31

Ramirent

Competitive landscape in Russia

Cramo

Pekka-niska

Volvo/Ferro-nordic

Algeco

Renta-Crane

Sautec

Gradus

Neva-Rend

UM-260

GrandMotors

27 %

21 %

16 %14 %

10 % 8 %

5 %

Central Volga South Siberia North-West Urals Far East

32Sources: Ministry of Economic Development and Trade, Ramirent-08 strategy

Central• Moscow 11.5 mln

Total population:

38.4 mln Volga• N. Novgorod 1.26 mln

• Samara 1.16 mln

• Kazan 1.15 mln

• Ufa 1.06 mln

Total population:

29.9 mln

Southern• Rostov-on-Don:

1.09 mln

• Volgograd: 1.02 mln

Total population:

13.9 mln

Urals• Ekaterinburg 1.35 mln

• Chelyabinsk 1.13 mln

Total population:

12.0 mln

European FDs + Urals make over 80% of

the population and construction market

Northwestern• St.Petersburg 4.8 mln

Total population:

13.6 mln

North CaucasianTotal population:

9.5 mln

37 %

15 % 13 % 11 % 10 %6 % 5 % 3 %

2014-Forecasted GDP by federal district, % of total

- volume of GRP by federal district

Note: Cities with population over 1 mln people are indicated.

Population by federal district, % of total

Russian market is mainly concentrated in the European part of the country

Total population 142.5 mln. people

Opportunities

• Low rental penetration gives growth opportunities in all market

• Huge market potential in Russia and Ukraine

• The recession increased interest to use rental services instead of owning.

• Development of services support growth.

• Lean and well optimized cost structure lead to high profitability if the growth will continue.

• More balanced and diversified product portfolio, enlarged customer base and better geographical balance reduce risks.

Challenges

• Market fluctuation – Changes in

macro economics may hit rental

markets.

• Undeveloped and changing

legislation.

• VAT returns are not working which

limits investments (Ukraine).

• Customer payments use to prolong

during crises.

• Opening of new depot requires often

time.

• Long distances between business

units are challenging for logistic.

Segment East EuropeOpportunities and challenges

33

THANK YOU!

Kari Aulasmaa

SVP, Finland and Europe East

Tel +358405116445

[email protected]

leading the way in finland and europe...

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