ramirent financial statement bulletin 2013
TRANSCRIPT
FINANCIAL STATEMENTS 2013February 17, 2014
CEO Magnus RosénCFO Jonas Söderkvist
Agenda
Highlights Q4 and 1-12/2013
Market outlook
Segment review
Financial review
Company overview
Appendix
217 February 2014 l Financial Statements Bulletin 2013
3
Highlights Q4/2013
Net sales MEUR 167.5 (194.1) down by 13.7% (down by 10.5% at comparable exchange rates)
Adjusted for divested operations, net sales decreased by 5.9% at comparable exchange rates
EBITA MEUR 20.9 (29.7) or 12.5% (15.3%) of net sales
Net profit MEUR 13.9 (19.9) and EPS EUR 0.13 (0.18)
Gross capex MEUR 33.8 (36.8)
Cash flow after investments MEUR 25.2 (16.8)
17 February 2014 l Financial Statements Bulletin 2013
4
Highlights 1-12/2013
Net sales MEUR 647.3 (714.1) down by 9.4% (down by 8.5% at comparable exchange rates)
Adjusted for divested operations,
net sales decreased by 4.2% at comparable exchange rates
EBITA MEUR 92.1 (100.6) or 14.2% (14.1%) of net sales
EBITA excluding non-recurring items1)
was MEUR 85.3 (100.6) or 13.2% (14.1%)
Net profit MEUR 54.0 (63.7) and EPS EUR 0.50 (0.59)
Gross capex MEUR 125.8 (124.0)Cash flow after investments MEUR 73.4 (54.2)
Net debt to EBITDA ratio 1.1x (1.1x)
1) Non-recurring items included a non-taxable capital gain of MEUR 10.1 from the formation of Fortrent, a loss of MEUR 1.9 from disposal of Hungary and a restructuring provision of MEUR 1.5 in Denmark.
17 February 2014 l Financial Statements Bulletin 2013
The Board proposes an ordinary dividend of EUR 0.37 per share and authorisation to decide on payment of additional dividend up to EUR 0.63 per share
5
Earnings Per Share and Dividend Per Share 2009–2013
The Board proposes an ordinary dividend of EUR 0.371) (0.34) per share for the year 2013
Total dividend EUR 39.8 million1) and payout ratio 73.7%1) (57.6%)
The Board proposes to be authorised to decide at its discretion on the payment of additional dividend up to the amount of EUR 0.63 per share
0.04
0.13
0.41
0.59
0.50
0.15
0.250.28
0.340.371)
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
2009 2010 2011 2012 2013
EPS DPS
1) Board’s proposal
Long-term financial target:Dividend payout ratio at least
40% of net profit
17 February 2014 l Financial Statements Bulletin 2013
Net sales declined by 4.2% in 2013, adjusted for exchange rates and divested operations
6
Change in net sales (%) Q4/12 vs. Q4/13
-13.7%
-10.5%
-5.9%
-16%
-14%
-12%
-10%
-8%
-6%
-4%
-2%
0%
Q4/2013reported
Q4/2013 atcomparable
exchange rates
Q4/2013adjusted for
the transfer ofoperations in
Russia, Ukraineand Hungary,at comparableexchange rates
Change in net sales (%) 1-12/12 vs. 1-12/13
-9.4%-8.5%
-4.2%
-10%
-9%
-8%
-7%
-6%
-5%
-4%
-3%
-2%
-1%
0%
1-12/2013reported
1-12/2013 atcomparable
exchange rates
1-12/2013adjusted for
the transfer ofoperations in
Russia, Ukraineand Hungary,at comparableexchange rates
17 February 2014 l Financial Statements Bulletin 2013
Full-year reported EBITA margin on par with the previous year
1) The non-recurring items include the non-taxable capital gain of EUR 10.1 million from the formation of Fortrent, the EUR 1.9 million loss from disposal of Hungary and the EUR 1.5 million restructuring provision in Denmark.
7
EBITA margin (%) Q4/12 vs. Q4/13
15.3%
12.5%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
Q4/2012 reported Q4/2013 reported
EBITA margin (%) 1-12/12 vs. 1-12/13
14.1% 14.2%13.2%
0%
2%
4%
6%
8%
10%
12%
14%
16%
1-12/2012reported
1-12/2013reported
1-12/2013excluding
non-recurringitems1)
17 February 2014 l Financial Statements Bulletin 2013
Strong cash flow generation throughout the year
8
Cash flow after investments (MEUR)Q4/12 vs. Q4/13
16.8
25.2
0
10
20
30
40
50
60
Q4/2012 reported Q4/2013 reported
Cash flow after investments (MEUR)1-12/12 vs. 1-12/13
54.2
73.4
0
10
20
30
40
50
60
70
80
1-12/2012 reported 1-12/2013 reported
17 February 2014 l Financial Statements Bulletin 2013
Strengthened balance sheet by the increased cash flows
9
Leverage and risk
Profit generation
Dividend
Element Target level
ROE
Net Debt / EBITDA
ratio
Dividend pay-out
ratio
18% p.a. over a business cycle
Below 1.6x at the end of each fiscal year
At least 40% of Net profit
Measure 1–12/2013
14.7%
1.1x
73.7%1) of 2013 net profit
1) Board's proposal
17 February 2014 l Financial Statements Bulletin 2013
10
Europe Central (PL+CZ+SL)
56 customer
centres
Finland74 customer
centres
Sweden74 customer
centres
Norway43 customer
centres
Denmark16 customer
centres
Europe East -
Baltics41 customer
centres
We increased geographical focus on core Baltic Rim markets and widened the customer base
Finland23%
Sweden32%
Norway24%
Denmark7%
Europe East -Baltics6%
Europe Central9%
Sales per customer 1-12/2013
Construction64%
Industrial18%
Services & Retail12%
Public4%
Private2%
Current state close to target of 40% non-construction dependent sales
Russia and Ukraine presence through JV Fortrent
Sales per segment 1-12/2013
17 February 2014 l Financial Statements Bulletin 2013
MARKETOUTLOOK
1117 February 2014 l Financial Statements Bulletin 2013
Total Nordic construction output by construction sector 2009–2015F
Nordic construction market is expected to grow moderately in 2014
*Renovation includes residential and non-residential renovationSource: Euroconstruct 12/2013 17 February 2014 l Financial Statements Bulletin 2013
12
80
90
100
110
120
130
140
2009 2010 2011 2012 2013E 2014F 2015F
New residential construction New non-residential constructionRenovation* Infrastructure constructionTotal Nordic construction output
Index
+1.2%
+4.4%
+2.4%
Total Nordic construction output
2014F: +2.1%
New residential construction
Infrastructure construction
Renovation*
New non-residential construction
+0.2%
Equipment rental markets forecasted to grow in 2014
13
Construction output growth (%) and equipment rental market growth (%) 2014E
0.5%
1.6%
3.6%
3.3%3.5%
3.0%*
2.3%
3.6%
1.9%
3.6%
Finland Sweden Norway Denmark Poland
Construction output growth (%) 2014E Equipment rental market growth (%) 2014E
Source: European Rental Association 2013 and VTT 2013* 17 February 2014 l Financial Statements Bulletin 2013
14
Nordic construction order books remained on par (+0.1%) with the previous year in Q4/2013
-40%
-20%
0%
20%
40%
60%
0
2
4
6
8
10
12
14
16
18
20
Q12007
Q2 Q3 Q4 Q12008
Q2 Q3 Q4 Q12009
Q2 Q3 Q4 Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Q2 Q3 Q4
Skanska NCC
Peab Veidekke
YIT Lemminkäinen
SRV Change in Net sales YoY, R12 Ramirent
Change in order backlog YoY, Nordic construction
Nordic construction order books remained on par with the previous year in Q4/2013
Nordic construction companies order books, BEUR (at comparable exchange rates)
EUR billion
17 February 2014 l Financial Statements Bulletin 2013
15
RAMIRENT OUTLOOK FOR 2014
The economic growth in 2014 is expected to be modest and construction market demand remains mixed in our core markets.
Ramirent will maintain strict cost control and, for 2014, capital expenditure is expected to be around the same level as in 2013.
The strong financial position will enable the Group to continue to address profitable growth opportunities.
17 February 2014 l Financial Statements Bulletin 2013
16
We continue to pursue our strategic objetives
Customer first
Sustainable profitable growth
Common Ramirent platform
Balanced business portfolio
• Strong customer-centric approach with increased focus on sustainability, safety and quality
• Being the leading and most profitable general rental company where present
• Developing a one-company structure with operational consistency
• Maintain a balanced portfolio of customers, products and markets to balance risk
EBITA by segment* (%)
Group EBITA** (%)
17
Target EBITA margin is 18% for all segments...
...which leads to a Group EBITA margin of 17%
The overall target has been broken down to segment-specific efficiency plans
Building the common Ramirent platform plays an integral part in reaching the target
16.917.6
14.3
-6.3
20.2
2.0
-5.0
0.0
5.0
10.0
15.0
20.0
FI SE NO DK EE* EC*
EBITA 2013 min 10% min 18%
13
1.52.5
17
0
5
10
15
20
EBITA 2013 min 10% in allsegments
min 18% in allsegments
Target
*EBITA excluding non-recurring items**Excluding transferred operations in Russia/ Ukraine to Fortrent and divestment of Hungary
We will continue implementing actions to reach an EBITA margin of 17% in 2016
Increased market share
Growth within current business
Extended customer value
proposition
Increasing services and integrated solutions
Increased penetration
Outsourcing opportunities
Increased footprint
New customer segments
New geographies
M&A
Acquisitions, joint
ventures and other
transactions
18
1 2 3 4 5
We are turning focus back to growth through a clear strategy
17 February 2014 l Financial Statements Bulletin 2013
5 key components of our growth strategy:
SEGMENT REVIEW
1917 February 2014 l Financial Statements Bulletin 2013
28
36 3835
30
37
4542
3841
4542
35 36
4239
-5%
0%
5%
10%
15%
20%
25%
30%
0
5
10
15
20
25
30
35
40
45
50
Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Q2 Q3 Q4
Net sales EBIT-%
Finland
Net sales decreased due to weaker activity in the construction sector especially in northern and western Finland
EBIT weakened due to price pressure and lower capacity utilisation
Actions to adjust fixed cost levelcontinued
20
Highlights Q4/2013 Sales and EBIT by quarter
Finland Q4 2013
Q4 2012
Change(EUR)
Change(Local)
1–12/ 2013
1–12/ 2012
Change(EUR)
Change(Local)
Net sales, MEUR 38.6 41.7 −7% 151.9 166.5 −9%
EBITA, MEUR 6.1 7.6 −21% 25.7 31.4 −18%
% of net sales 15.7% 18.3% 16.9% 18.9%
EBIT, MEUR 5.8 7.3 −21% 24.6 30.2 −19%
% of net sales 14.9% 17.6% 16.2% 18.2%
Capital expenditure 6.9 10.8 −36% 28.8 25.7 12%
Personnel 550 572 −4% 550 572 −4%
Customer centres 74 76 −3% 74 76 −3%
17 February 2014 l Financial Statements Bulletin 2013
21
Good construction activity supported the demand in the Stockholm area
Steady demand for equipment rental from the industrial sector in central and northern Sweden
Profitability supported by strict cost control, enhanced operational efficiency and good price discipline
2935 36
4541 42
45
5448
51 5358
5053 51 53
0%
5%
10%
15%
20%
25%
0
10
20
30
40
50
60
70
Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Q2 Q3 Q4
Net sales EBIT-%
Sales and EBIT by quarterHighlights Q4/2013
Sweden
Sweden Q4 2013
Q4 2012
Change(EUR)
Change(Local)
1–12/ 2013
1–12/ 2012
Change(EUR)
Change(Local)
Net sales, MEUR 52.8 57.9 −9% −6% 207.3 209.9 −1% −2%
EBITA, MEUR 11.1 10.2 9% 36.6 36.3 1%
% of net sales 21.0% 17.6% 17.6% 17.3%
EBIT, MEUR 10.4 9.4 11% 34.0 33.3 2%
% of net sales 19.8% 16.3% 16.4% 15.9%
Capital expenditure 9.1 6.5 41% 35.8 45.5 −21%
Personnel 664 677 −2% 664 677 −2%
Customer centres 74 79 −6% 74 79 −6%
17 February 2014 l Financial Statements Bulletin 2013
Norway
22
Net sales were affected by the weakened Norwegian krone and lower construction activity
Weaker demand in western and southern Norway
Cost reductions did not manage to offset the lower demand
Pricing environment became more challenging
28 27 2831 33 30
4042 44
3841
51
38 3936
41
-5%
0%
5%
10%
15%
20%
0
10
20
30
40
50
60
Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Q2 Q3 Q4
Net sales EBIT-%
Sales and EBIT by quarterHighlights Q4/2013
Norway Q4 2013
Q4 2012
Change(EUR)
Change(Local)
1–12/ 2013
1–12/ 2012
Change(EUR)
Change(Local)
Net sales, MEUR 40.8 51.0 −20% −11% 153.6 174.0 −12% −8%
EBITA, MEUR 2.8 7.1 −60% 22.0 24.6 −11%
% of net sales 6.9% 13.9% 14.3% 14.1%
EBIT, MEUR 2.3 6.5 −65% 19.7 22.2 −11%
% of net sales 5.6% 12.7% 12.8% 12.8%
Capital expenditure 9.1 13.8 −34% 35.4 33.6 3%
Personnel 465 467 −0% 465 467 −0%
Customer centres 43 42 2% 43 42 2%
17 February 2014 l Financial Statements Bulletin 2013
23
Demand for equipment rental improved slightly due to gradually improving construction activity
Good demand in the capital city area
Restructuring continued to improve profitability
Prices remained stable
89 9 10
810
11
15
1011 11
12
9
1112 12
-20%
-15%
-10%
-5%
0%
5%
10%
0
2
4
6
8
10
12
14
16
Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Q2 Q3 Q4
Net sales EBIT-%
Sales and EBIT by quarterHighlights Q4/2013
Denmark
Denmark Q4 2013
Q4 2012
Change(EUR)
Change(Local)
1–12/ 2013
1–12/ 2012
Change(EUR)
Change(Local)
Net sales, MEUR 11.8 12.2 −3% −3% 44.0 44.7 −2% −1%
EBITA, MEUR −0.7 0.9 −186% −4.31)
1.8 n/a
% of net sales −6.2% 7.0% −9.7%1)
4.1%
EBIT, MEUR −0.9 0.8 −204% −4.42)
1.6 n/a
% of net sales −7.2% 6.7% −10.1%2)
3.6%
Capital expenditure 1.9 0.7 182% 6.6 2.0 227%
Personnel 177 192 −8% 177 192 −8%
Customer centres 16 19 −16% 16 19 −16%
17 February 2014 l Financial Statements Bulletin 2013
1) EBITA excluding non–recurring items was EUR −2.8 (1.8) million or −6.3% (4.1%) in January–December 2013.
2) EBIT excluding non–recurring items was EUR −2.9 (1.6) million or −6.7% (3.6%) in January–December 2013.
The non-recurring items included the EUR 1.5 restructuring provision for the third quarter of 2013.
24
Adjusted net sales up by 5.5%
Profitability improved mainly due to higher capacity utilisation in the Baltic States
Fortrent Q4/2013:• At comparable exchange rates, net sales decreased by 6.8%
• EBITA was MEUR 2.6 (3.0) or 18.8% (18.5%) of net sales
8
10
1213
9
13
17 16
12
15
19 17
10
8
108
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
0
2
4
6
8
10
12
14
16
18
20
Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Q2 Q3 Q4
Net sales EBIT-%
Sales and EBIT by quarterHighlights Q4/2013
Europe East
Europe East Q4 2013
Q4 2012
Change(EUR)
Change(Local)
1–12/ 2013
1–12/ 2012
Change(EUR)
Change(Local)
Net sales, MEUR 8.4 17.4 −52%1)
−52% 35.5 63.3 −44%1)
−44%
EBITA, MEUR 2.7 5.0 −45% 17.32)
11.1 56%
% of net sales 32.6% 28.9% 48.8%2)
17.5%
EBIT, MEUR 2.7 5.0 −46% 17.23)
10.9 57%
% of net sales 32.3% 28.7% 48.4%3)
17.3%
Capital expenditure 6.6 2.6 158% 9.6 9.8 −2%
Personnel 206 443 −54% 206 443 −54%
Customer centres 41 62 −34% 41 62 −34%
113%
17 February 2014 l Financial Statements Bulletin 2013
1) Adjusted for the transfer of the Russian and Ukrainian operations to Fortrent as of March 1, 2013 the increase in net sales in October-December 2013 was 5.5%. In January–December 2013 the increase was 4.0%.2) EBITA excluding non–recurring items was EUR 7.2 (11.1) million, representing 20.2% (17.5%) of net sales.3) EBIT excluding non–recurring items was EUR 7.1 (10.9) million, representing 19.9% (17.3%) of net sales.The non–recurring items included the non–taxable capital gain of EUR 10.1 million from the formation of Fortrent, recorded in the first quarter of 2013.
25
Construction and industrial activity continued to recover in Poland
Weak market conditions continued in the Czech Republic and Slovakia
Actions to scale down operations supported profitability
Prices increasing from low levels
12
16
20 19
14
19
22
19
1315
1816
11
14
1715
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
0
5
10
15
20
25
Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Q2 Q3 Q4
Net sales EBIT-%
Sales and EBIT by quarterHighlights Q4/2013
Europe Central
Europe Central Q4 2013
Q4 2012
Change(EUR)
Change(Local)
1–12/ 2013
1–12/ 2012
Change(EUR)
Change(Local)
Net sales, MEUR 15.3 16.2 −6%1)
−6% 57.3 62.7 −9%1)
−8%
EBITA, MEUR 0.1 0.4 −82% −0.72)
−0.7 1%
% of net sales 0.4% 2.2% −1.2%2)
−1.1%
EBIT, MEUR −0.0 0.2 −108% −3.73)
−1.6 141%
% of net sales −0.1% 1.1% −6.5%3)
−2.5%
Capital expenditure 2.2 3.0 −26% 7.1 8.0 −11%
Personnel 492 626 −21% 492 626 −21%
Customer centres 56 80 −30% 56 80 −30%
1) Adjusted for the divestment of the Hungarian business the increase in net sales in October−December 2013 was 8.6%. In January−December 2013 the decrease in sales was 4.1%.2) EBITA excluding non–recurring items was EUR 1.2 (−0.7) million or 2.0% (−1.1%) in January–December 2013.3) EBIT excluding non–recurring items was EUR 1.0 (−1.6) million or 1.7% (−2.5%) in January–December 2013.The non-recurring items included the goodwill impairment loss of EUR 2.9 million due to weak market conditions in Hungary, recorded in the first quarter 2013 and the EUR 1.9 million loss from
disposal of Hungary, recorded in the third quarter 2013. 17 February 2014 l Financial Statements Bulletin 2013
FINANCIAL REVIEW
2617 February 2014 l Financial Statements Bulletin 2013
Cash flow increased by 50% in the fourth quarter (year-on-year)
27
Net Sales (MEUR) EBITDA (MEUR)
Cash flow after investments (MEUR)
Net debt (MEUR) Gross Capex (MEUR)
EBITA (MEUR)
1322
1018
32
45
120
4636
24 2837
32 30 3034
0%
10%
20%
30%
40%
50%
60%
70%
80%
0
20
40
60
80
100
120
140
Q12010
Q2Q3Q4Q12011
Q2Q3Q4Q12012
Q2Q3Q4Q12013
Q2Q3Q4
Gross Capex Share of net sales-%
212209197
177191
238
280263258
281256
239
220
264
230
207
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
50
100
150
200
250
300
Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Q2 Q3 Q4
Net debt Gearing-%
-5
8
17
13
4
17
32
27
14
25
3230
23 2326
21
-10%
-5%
0%
5%
10%
15%
20%
-10
-5
0
5
10
15
20
25
30
35
Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Q2 Q3 Q4
EBITA EBITA-%
18
31
42
37
28
41
5955
42
52
6057
48 4952
46
0%
5%
10%
15%
20%
25%
30%
35%
0
10
20
30
40
50
60
70
Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Q2 Q3 Q4
EBITDA EBITDA-%
112129
141150
134150
179187
164170186
194
153161166168
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
0
50
100
150
200
250
Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Q2 Q3 Q4
Net sales Y-o-y change-%
-4
13 14
24
-11
-20
-37
16
6 7
24
17 19
-5
34
25
-50
-40
-30
-20
-10
0
10
20
30
40
Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Q2 Q3 Q4
First-quarter 2013 EBITA excluding non-recurring items was EUR 12.4 (14.4) million, representing 8.1% (8.7%) of net sales
Third-quarter 2013 EBITA excluding non-recurring items was 29.3 (31.8) million or 17.6% (17.1%) of net sales
Mixed performance by segment in 2013
28
Finland Sweden Norway Denmark Baltics Central
Net
Sale
s
(M
EU
R)
EB
IT
A M
arg
in(%
)
1-12/2012 1-12/2013
166.5
209.9
174.0
44.729.8
62.7
151.9
207.3
153.6
44.031.0
57.3
Finland Sweden Norway Denmark The Baltic States Europe Central
18.9%17.3%
14.1%
4.1%
18.3%
-1.1%
16.9% 17.6%
14.3%
-9.7%1)
17.4%
-1.2%2)Finland Sweden Norway Denmark The Baltic States Europe Central
1) EBITA-margin excluding non-recurring items was −6.3% (4.1%) in January–December 2013
2) EBITA-margin excluding non-recurring items was 2.0% (−1.1%) in January–December 2013
Net sales affected by exchange rates and divested operations
Net sales MEUR 167.5 (194.1) down by 13.7% (down by 10.5% at comparable exchange rates)
Adjusted for transferred or divested operations, net sales decreased by 5.9% at comparable exchange rates
Net sales MEUR 647.3 (714.1) down by 9.4% (down by 8.5% at comparable exchange rates)
Adjusted for transferred or divested operations, net sales decreased by 4.2% at comparable exchange rates
29
Net sales (MEUR) Q4/12 vs. Q4/13
194.1
6.3 8.911.5
167.5
0
50
100
150
200
250
Q4/2012reported
Exchangerates
Divestedoperations
Marketchange
Q4/2013reported
Net sales (MEUR) 1-12/12 vs. 1-12/13
714.1
6.1 30.730.0
647.3
0
100
200
300
400
500
600
700
800
1-12/2012reported
Exchangerates
Divestedoperations
Marketchange
1-12/2013reported
- --
---
17 February 2014 l Financial Statements Bulletin 2013
30
63% 63%
33% 31%
4% 6%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Q4/2012 Q4/2013
Income from sold equipment
Ancillary income
Rental income
122.8104.8
63.7
51.9
7.6
10.8
0
50
100
150
200
250
Q4/2012 Q4/2013
Income from sold equipment
Ancillary income
Rental income
42.2%
−18.6%
−14.7%
Breakdown of net sales (%) and MEUR
Rental income and ancillary income decreased compared to previous year
17 February 2014 l Financial Statements Bulletin 2013
31
Net sales by segment (MEUR) and Change % (YoY) Q4/12 vs. Q4/13
−7.4% −20.0% −5.6%2)−51.7%1)−3.3%−8.7%
Net sales declined in all segments in the fourth quarter
1) Adjusted for the transfer of the Russian and Ukrainian operations to Fortrent, net sales increased in Q4/2013 by 5.5%
2) Adjusted for the divestment of the Hungarian business the increase in net sales in Q4/2013 was 8.6%
41.7
57.9
51.0
12.2
17.4 16.2
38.6
52.8
40.8
11.8
8.41)
15.32)
0.0
10.0
20.0
30.0
40.0
50.0
60.0
Finland Sweden Norway Denmark Europe East EuropeCentral
Q4/2012 Q4/2013
17 February 2014 l Financial Statements Bulletin 2013
32
Gross margin (%) by quarter
Full-year gross margin decreased compared with the previous year
65%
67%
68%
66%
67%67%
68%
69%
66%
68%
66%
68% 69%
64%
67%
67%
69%69%
63%
65%
Q1 Q2 Q3 Q4 FY
2010 2011 2012 2013
17 February 2014 l Financial Statements Bulletin 2013
Number of employees decreased mainly due to restructuring in Denmark and Europe Central
At the end of December 2013, the Group’s number of employees was 2,592 (3,005)
At the end of 2012, the number of employees in Russia and Ukraine amounted to 238
33
572
677
467
192
443
626
550
664
465
177206
492
Finland Sweden Norway Denmark Europe East EuropeCentral
Personnel 31/12/12 Personnel 31/12/13
Number of employees by segment
17 February 2014 l Financial Statements Bulletin 2013
In 2013 the number of customer centres decreased mainly in Europe Central due to scaling down of operations
Customer centres per segment
34
334 325306 304
Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Q2 Q3 Q4
Finland Sweden Norway Denmark Europe East Europe Central
353
17 February 2014 l Financial Statements Bulletin 2013
Ramirent’s fixed costs reduced by 17 MEUR compared to last year
Group fixed costs 252.5 (269.7) MEUR in 1-12/2013, including 3.4 MEUR in non-recurring items ���� 249.1 MEUR excluding non-recurring items
35
Fixed costs by quarter (MEUR)
33 33 3238 37 37
41 42 42 40 42 42 42 39 40 36
22 23 22
24 27 2525
28 2525
26 27 2422 24
25
56 56 54
62 63 6266
70 6865
68 6966
6264
61
Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Q2 Q3 Q4
Employee benefit expenses Other operating expenses
17 February 2014 l Financial Statements Bulletin 2013
Full-year 2013 reported EBITA-margin 14.2%
36
-5.1
8.0
17.4
12.7
3.6
16.5
32.0
27.3
14.4
24.7
31.8
29.7
22.61) 22.7
25.92)
20.9
-10%
-5%
0%
5%
10%
15%
20%
-10
-5
0
5
10
15
20
25
30
35
Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Q2 Q3 Q4
EBITA EBITA-%
EBITA (MEUR) and EBITA-margin (%) Q1/2010 – Q4/2013
1-12/2010: 33.0 1-12/2011: 79.4 1-12/2012: 100.6
1) First-quarter 2013 EBITA excluding non-recurring items was EUR 12.4 (14.4) million, representing 8.1% (8.7%) of net sales
2) Third-quarter 2013 EBITA excluding non-recurring items was 29.3 (31.8) million or 17.6% (17.1%) of net sales
1-12/2013: 92.1
17 February 2014 l Financial Statements Bulletin 2013
EBITA margin 13.2% in 2013, adjusted for non-recurring items
Non-recurring items in 1-12/2013:
Capital gain of EUR 10.1 million booked from the transaction to form Fortrent
Impairment loss of EUR 2.9 million in the Hungarian goodwill
Loss of EUR 1.9 million from disposal of Hungary
Restructuring provision of 1.5 million in Denmark
37
EBITA (MEUR) 1-12/12 vs 1-12/13
100.6 92.1
10.1 1.9 1.5
85.3
0
20
40
60
80
100
120
1-12/2012reported
1-12/2013reported
Capital gain Loss fromdisposal ofHungary
Restructuringprovision in
Denmark
1-12/2013adjusted
EBIT (MEUR) 1-12/12 vs 1-12/13
92.5 82.3
10.1 2.9 1.9 1.5
78.4
0
20
40
60
80
100
1-12/2012reported
1-12/2013reported
Capital gain Goodwillimpairment
Loss fromdisposal ofHungary
Restructuringprovision in
Denmark
1-12/2013adjusted
14.1% 14.2% 13.2%% of Net sales
13.0% 12.7% 12.1%% of Net sales
6.8 MEUR
3.9 MEUR
17 February 2014 l Financial Statements Bulletin 2013
All segments have the potential to reach 18% EBITA margin
38
16.9 17.6
14.3
-9.7
17.4
-1.2
-6.31)
2.02)
-15
-10
-5
0
5
10
15
20
Finland Sweden Norway Denmark The Baltic States Europe Central
1-12/2013 reported 1-12/2013 adjusted for non-recurring items
Min 10% Target 18%
1) The non-recurring items included the EUR 1.5 million restructuring provision for the third quarter of 2013.
2) The non-recurring items included the EUR 1.9 million loss from disposal of Hungary in the third quarter 2013.
EBITA-margin (%) 1–12/2013 by segments
Strong EBIT margin in Sweden and Europe East in Q4/2013
39
17.6%16.3%
12.7%
6.7%
28.7%1)
1.1%
14.9%
19.8%
5.6%
-7.2%
32.3%1)
-0.1%
Finland Sweden Norway Denmark East Central
Q4/12 Q4/13
EBIT–margin (%) by segments
1) EBIT-margin in the Baltic States was 19.8% (19.0%) in the fourth quarter 2013
17 February 2014 l Financial Statements Bulletin 2013
Ramirent Group going concern: Net sales 638 MEUR, EBITA 83 MEUR
40
156.0 146.8 160.3 159.1 174.0 164.6 182.6 167.5
6.8 4.67.8 0.0
9.6 9.41.6 1.51.7
1.7
2.31.6
2.1
0
50
100
150
200
Group (exc. Russia, Ukraine and Hungary) Russia and Ukraine Hungary
Group Net sales and Net sales in Russia, Ukraine and Hungary (MEUR)
Group EBITA and EBITA in Russia, Ukraine and Hungary (MEUR)
15.011.4
24.2 23.429.7 28.2 25.6
19.8
11.41)
0.6 0.0
1.7
3.50.1
0.4
0.3
1.1 (Fortrent)
0
10
20
30
Group (exc. Russia, Ukraine and Hungary) Russia and Ukraine (incl. capital gain)Hungary (incl. capital loss) Restructuring provision in DenmarkFortrent
−0.2 (Fortrent) −0.8 (Fortrent) 0.5 (Fortrent)
−0.4
−0.1
−0.2
−0.2
−1.5
1) Includes the non-taxable capital gain of EUR 10.1 million from the formation of Fortrent
17 February 2014 l Financial Statements Bulletin 2013
−1.3
Capex adjusted to market conditions and was in line with depreciation in 2013
41*Investments in machinery and equipment excluding acquisitions
54
96
165
212
165
15
53
131
108123
99 16
11
6
37
3
9
111
163
0
50
100
150
200
250
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Capital expenditure* Acquisitions Depreciation
Acquisition of Altima for EUR 89 million
During market downturns Ramirent can reduce capex to a minimum
11 bolt-on acquisitions
The total value of purchased equipment was 115.3 (101.3) million in 1-12/2013
The sales value of sold rental equipment was EUR 28.3 (27.1) million in 1-12/2013
Capital expenditure, acquisitions and depreciation (MEUR) 2004–2013
17 February 2014 l Financial Statements Bulletin 2013
Capital expenditure focused on Norway, Finland, Sweden and East
No acquisitions were made in 2013
42
10.8
6.5
13.8
0.7
2.6 3.0
6.9
9.1 9.1
1.9
6.6
2.2
Finland Sweden Norway Denmark East Central
Q4/12 Q4/13
Capital Expenditure by segments (MEUR)
17 February 2014 l Financial Statements Bulletin 2013
Working capital decreased to 3% of the net sales in the fourth quarter
January–December 2013 credit losses and net change in the allowance for bad debt totalled EUR −4.7 (−6.4) million
Dividend of EUR 36.6 million paid in April 2013
43
Working capital by quarter (MEUR)
15 14 14 16 16 17 17 17 18 18 20 15 15 15 14 11
83 90 99
97
95 10
9
12
4
12
0
11
4
13
1
14
1
13
6
11
5
12
9
12
5
10
9
-69
-86
-86
-89
-82
-84
-10
7
-10
9
-13
9
-11
2
-12
2
-11
3
-14
3 -98
-10
2
-10
4
-6%
-4%
-2%
0%
2%
4%
6%
8%
-120
-80
-40
0
40
80
120
160
Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Q2 Q3 Q4
Trade payables and other liabilitiesTrade and other receivablesInventoriesWorking capital/Net sales Rolling 12 month basis
17 February 2014 l Financial Statements Bulletin 2013
Return on investment at 16.5%
Return on invested capital, ROI 16.5% (18.9%) at the end of December 2013
44
Invested capital (MEUR) and ROI (%) rolling 12 months
524 508 509 496 508536
588 591565
602 605 604
654611 604
580
0%
5%
10%
15%
20%
25%
0
100
200
300
400
500
600
700
Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Q2 Q3 Q4
Invested capital ROI % (R12)
17 February 2014 l Financial Statements Bulletin 2013
Ramirent’s strong cash flow generation is sufficient for maintenance as well as growth capex
45
18
31
42
37
28
41
59
55
42
52
60
57
48 49 52
46
-4
13 15
24
-11
-20
-6
-15
6 7
24
17 19
-5
34
25
-60%
-40%
-20%
0%
20%
40%
60%
80%
-60
-40
-20
20
40
60
80
Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13
EBITDA (MEUR) Cashflow after investments (MEUR) Cash Conversion
Cash flow after investments amounted to EUR 73.4 (54.2) million in 1-12/2013
Cash flow (MEUR) and Cash conversion (%) Q1/2010 – Q4/2013
17 February 2014 l Financial Statements Bulletin 2013
212 209197
177191
238
280263 258
281
256239
220
264
230
207
1.8x 1.9x1.7x
1.4x 1.4x
1.6x1.7x
1.4x
1.2x1.4x
1.2x1.1x
1.0x
1.2x1.1x 1.1x
0
1
2
3
0
50
100
150
200
250
300
Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Q2 Q3 Q4
Net debt Net debt to EBITDA ratio
Ramirent's financial position strengthened during the quarter
Dividend for FY2012 of 0.34 EUR/share (EUR 36.6 million) was paid in the second quarter
Net debt to EBITDA 1.1x (1.1x) at the end of December 2013
Proposed ordinary dividend for FY2013 of 0.37 EUR/share (EUR 39.8 million) + additional dividend up to 0.63 EUR/share (EUR 67.9 million)
46
Net debt (MEUR) and Net debt to EBITDA ratio
17 February 2014 l Financial Statements Bulletin 2013
Return on equity at 14.7%
47
309296
308 318 316296 305
326305
319
347364
342 344361
371
-5%
0%
5%
10%
15%
20%
25%
0
50
100
150
200
250
300
350
400
Q12010
Q2 Q3 Q4 Q12011
Q2 Q3 Q4 Q12012
Q2 Q3 Q4 Q12013
Q2 Q3 Q4
Total equity ROE % (R12)
Total equity (MEUR) and ROE (%) rolling 12 months
Return on equity, ROE 14.7% (18.5%) for last 12 months
Long-term financial target is 18.0% p.a over a business cycle
17 February 2014 l Financial Statements Bulletin 2013
At the end of December 2013, Ramirent had unused committed back–up loan facilities of EUR 232.1 million
In addition to bank facilities, Ramirent is utilising a domestic commercial paper program of up to EUR 150 million
The average interest rate of the loan portfolio was 3.8% (2.9%) at the end of December 2013
48
Repayment schedule of interest–bearing liabilities (MEUR)
100
240
100
2013 2014 2015 2016 2017 2018 2019
EUR 415.0 million in committed credit facilities
Net debt EUR 206.9 million
17 February 2014 l Financial Statements Bulletin 2013
Refinanced on 31 January 2014
For more information:www.ramirent.com
Magnus Rosén, CEO+358 20 750 [email protected]
Jonas Söderkvist, CFO+358 20 750 [email protected]
Franciska Janzon, IR+358 20 750 [email protected]
COMPANYOVERVIEW
5017 February 2014 l Financial Statements Bulletin 2013
Definition of Ramirent’s business and strategic choices
51
Where
Geographic presence
Home market Europe with focus on the Baltic Rim
How
ConceptRamirent is a generalist rental company, with an extensive outlet network enabling customer proximity while managing through decentralised operations
What
OfferingRamirent’s business offering stretches from single products to managing the entire fleet capacity at a customer site
Who
CustomersRamirent’s diverse customer base includes construction, industry, services, the public sector and private households
Ramirent is a generalist equipment rental and service company…
304 customer centres in 10 countries
2,592 employees serving 200,000 customers with 200,000 rental items
€647m of sales generating €92m
of EBITA
17 February 2014 l Financial Statements Bulletin 2013
52
Vision
To be the leading and most progressive equipment rental solutions company in Europe, setting the benchmark for industry performance and customer service
ValuesOpen
Engaged
Progressive
Mission
We simplify business by delivering Dynamic Rental SolutionsTM
Brand promise
Let’s solve it
...with a clear vision and mission
17 February 2014 l Financial Statements Bulletin 2013
53
Europe Central (PL+CZ+SL)
56 customer
centres
Finland74 customer
centres
Sweden74 customer
centres
Norway43 customer
centres
Denmark16 customer
centres
Europe East41 customer
centres
Ramirent's market position 2013
Finland No.1 Latvia No.1
Sweden No.2 Lithuania No.1
Norway No.1 Poland No.1
Denmark No.1 Czech Republic No.2
Estonia No.2 Slovakia No.1
Russia and Ukraine presence through JV Fortrent
Balanced mix between more mature markets in the Nordics and growth markets such as Central and Eastern Europe
Dense and well placed depot network enables local market leadership
Ramirent has a focus on the Baltic Rim and holds the market leader position in most markets
17 February 2014 l Financial Statements Bulletin 2013
Ramirent is transitioning from single equipment rental to integrated solutions…
54
Equipment Services
Rental Business and Sector Knowledge
BenefitsLighter balance sheets, less investments
BenefitsMore uptime in core operations due to less downtime in equipment, less maintenance costs, right choice of equipment improves efficiency, less product liability risk
BenefitsUnderstanding client requirements helps to customise product selection and further improve productivity
Heavy Equipment
Access EquipmentLifts, Hoists,
Scaffolding, Tower cranes
Modules and site equipment
Light EquipmentTools, power and heating
equipment
• Planning
• On-site services
• Logistics
• Merchandise sale
• Rental insurance
• Training
• Construction
• Mining
• Paper
• Power generation
• Oil & Gas
• Shipyards
• Retail & Service
• Public sector
• Households
Integrated Solutions
BenefitsEasy to buy, reduced number of subcontractors, increased focus on the core business
Exte
nd
ed
cu
sto
mer
valu
e p
rop
osit
ion
17 February 2014 l Financial Statements Bulletin 2013
…offered to a wide range of customer industries
in all countries
55
Targeting non-construction dependent sales of 40% of the Group's net sales
Sales per customer 1-12/2013
Construction64%
Industrial18%
Services & Retail12%
Public4%
Private2%
17 February 2014 l Financial Statements Bulletin 2013
56
Structural growth market1500
950
595
430
Equipment rentalmarket (MEUR)
2.3%
3.4%3.6%
2.0%
3.0%
1.5%
1.9%1.7%
Rental marketgrowth 2014E (%)
Rental Penetration*(%)
Sweden
Norway
Finland
Denmark
Propensity to rent
With solid growth drivers
*Source: European Rental Association 2013; Rental Turnover** / Total construction output **Equipment rental companies turnover, including rental-related revenues, merchandise as well as sales of used equipment. For other companies providing rental services as a secondary business, estimates for their share of turnover generated by rental activities have been applied.*** VTT, November 2013
Ramirent operates in a fundamentally attractive market
Propensity to outsource
Underlying construction demand
Consolidation
Rental-related services
17 February 2014 l Financial Statements Bulletin 2013
Significant growth through outsourcing and acquisitions
57
Outsourcing deal with two subsidiaries in Finland
Outsourcing deal in Finland
Acquisition of Swedish rental company
Outsourcing deal in Norway
Acquisition of Czech rental business
Outsourcing dealin Denmark
Outsourcing dealin Finland
Acquisition of Finnish weather protection rental company
Aquisition of Czech rental business
Acquisition of Czech rental business
Acquisition ofSwedish rental company
Acquisition ofDanish rental business
Acquisition of module rental company in Norway
Outsourcing of Mt Hojgaard's Danish scaffolding division
Acquisition of Swedish rental company
Acquisition of Swedish rental company
Outsourcing dealin Norway
Joint venture in Russia and Ukraine
with Cramo
2009 - 2010 2011 - 2012 2013
Outsourcing dealin Finland
Divestment of operations in Hungary
Formworkspartnershipwith Doka in Finland
� Extending geography to “white spots”
� Complimentary product ranges or related services
� Strengthening links to new customer segments
� Targets mid-size companies mainly
� Outsourcing of customer’s in-house fleets
Criteria
Proven track record of accretive acquisitions made at attractive multiples tied to earn-outs
17 February 2014 l Financial Statements Bulletin 2013
Ramirent's Financial Business Model: Three complimentary drivers of value creation
58
• Volumes
• Upselling
• Pricing• Fleet management• Sourcing• Cost structure• Quality of earnings
• Cash conversion• Capex• Working capital• Dividend• Capital Structure
Organic Growth Operating Leverage Financial Leverage
Cash Flow
Target EBITA margin
improvement of 300bps
Net debt/ EBITDA
target of below 1.6x (at y/e)
Capital
Expenditure
ROE target of 18% over the cycle
Dividend pay-out
ratio of at least
40% of net profit
17 February 2014 l Financial Statements Bulletin 2013
Customer service level
Total costs
Non-available
fleet
Capitalefficiency
Improving utilisation through active fleet management
Optimising fleet maintenance strategy
Resourcing and maintenance & repair locations
Optimising workshop processes
Balanced fleet age structure
Fleet management activities
59
Efficiency utilisation* (%) R3 months
Total Fleet Yield** (%) R3 months
0
20
40
60
80
2010 2011 2012 2013
0
10
20
30
40
50
2010 2011 2012 2013
∗������������ ������ ������������� ���������� ���
������������ �������� � ���∗ 100% ∗∗����� � ������ � �
���� ����� ∗ 100%
������������ �������� � ���
Goals KPIs
Efficient logistics
Fleet management potential realized at different levels
Largest shareholders
Largest shareholders December 31, 2013
Number of shares
% of share capital
1. Nordstjernan AB 31,581,716 29.05%
2. Oy Julius Tallberg Ab 12,207,229 11.23%
3. Varma Mutual Pension Insurance Company 6,753,799 6.21%
4. Ilmarinen Mutual Pension Insurance Company 4,145,154 3.81%
5. Odin funds 2,967,052 2.73%
6. Nordea funds 2,531,010 2.33%
7. Aktia funds 2,145,562 1.97%
8. Fondita funds 1,219,822 1.12%
9. Veritas Pension Insurance Company Ltd 1,209,866 1.11%
10. SEB funds 1,007,814 0.93%
Ramirent Oyj treasury shares 998,631 0.92%
Other shareholders 41,929,673 38.57%
Total 108,697,328 100.00%
60
Market Cap EUR 985.4 million
Trading informationListing: NASDAX OMX HelsinkiDate of listing: April 30, 1998
Segment: Mid CapSector: Industrials
Trading code: RMR1V
15.8%
28.5%
12.1%8.8%
1.9%
32.9%
Private companies
Financial and insurance institutions
Public sector organizations
Households
Non-profit organizations
Foreigners
Shareholders December 31, 2013
17 February 2014 l Financial Statements Bulletin 2013
61
IndexRamirent Plc (RMR1V)
Share price development in 2013
60
70
80
90
100
110
120
130
140
150
1600
2/0
1/2
01
3
16
/01
/20
13
30
/01
/20
13
13
/02
/20
13
27
/02
/20
13
13
/03
/20
13
27
/03
/20
13
10
/04
/20
13
24
/04
/20
13
08
/05
/20
13
22
/05
/20
13
05
/06
/20
13
19
/06
/20
13
03
/07
/20
13
17
/07
/20
13
31
/07
/20
13
14
/08
/20
13
28
/08
/20
13
11
/09
/20
13
25
/09
/20
13
09
/10
/20
13
23
/10
/20
13
06
/11
/20
13
20
/11
/20
13
04
/12
/20
13
18
/12
/20
13
Ramirent Plc OMX Helsinki PI (price index) OMX Helsinki Mid-Cap PI (price index)
9.15 December 30, 2013
17 February 2014 l Financial Statements Bulletin 2013
Attractive market - structural growth drivers and cyclical recovery potential
Number 1 position - market leader in 7/10 countries
Strong platform - above average profitability, capital efficiency, balanced risk level and operational excellence
Growth potential - 5 point growth strategy to capitalise on strong position
Financial strength – industry leading cash generation and leverage potential to finance growth, drive ROE and increase dividends
Proven management track record – experienced management has reshaped the company since 2008
62
Company highlights Stated Objectives
How will we deliver on our financial targets and create shareholder value?
� Non-Construction-dependent share of revenues to 40%
� EBITA margin improvement of 300 bps
� Increased strategic focus on growth
� Return on equity of 18% over the business cycle
� YE net debt to EBITDA of below 1.6x
� Dividend pay-out ratio of at least 40% of net profit
17 February 2014 l Financial Statements Bulletin 2013
APPENDIX
6317 February 2014 l Financial Statements Bulletin 2013
Consolidated statement of income
64
CONSOLIDATED STATEMENT OF INCOME 10–12/13 10–12/12 1–12/13
Restated*
1–12/12
(EUR 1,000)
Rental income 104,762 122,777 420,895 463,070
Ancillary income 51,854 63,738 198,040 223,899
Sales of equipment 10,845 7,625 28,317 27,115
NET SALES 167,461 194,141 647,252 714,083
Other operating income 209 1,192 12,732 3,026
Materials and services −61,105 −70,086 −213,169 −237,184
Employee benefit expenses −35,978 −41,583 −156,791 −166,324
Other operating expenses −25,383 −27,011 −95,660 −103,249
Share of profit in associates and joint ventures 1,040 31 688 116
Depreciation, amortisation and impairment charges −27,266 −28,976 −112,768 −117,943
EBIT 18,977 27,707 82,284 92,524
Financial income 2,608 −426 15,639 17,928
Financial expenses −8,753 −2,811 −34,055 −27,412
Total financial income and expenses −6,145 −3,237 −18,415 −9,484
EBT 12,832 24,469 63,869 83,041
Income taxes 1,068 −4,560 −9,839 −19,291
PROFIT FOR THE PERIOD 13,900 19,910 54,030 63,749
Profit for the period attributable to:
Owners of the parent company 13,900 19,910 54,030 63,749
TOTAL 13,900 19,910 54,030 63,749
Earnings per share (EPS) on parent company shareholder’s share of profit
Basic, EUR 0.13 0.18 0.50 0.59
Diluted, EUR 0.13 0.18 0.50 0.59
*Retrospective application of amendment to IAS 19 affecting Sweden and Norway segments
The Group has changed the presentation of income and expenses on derivative instruments in the income statement. The income and expenses are offset in the
income statement from 2013. The comparative information for 2012 has been adjusted accordingly.
17 February 2014 l Financial Statements Bulletin 2013
65
Consolidated statement of financial position
*Retrospective application of amendment to IAS 19 affecting Sweden and Norway segments
CONSOLIDATED STATEMENT OF FINANCIAL POSITION 31/12/2013
Restated*
31/12/2012
Restated*
1/1/2012
(EUR 1,000)
ASSETS
NON–CURRENT ASSETS
Goodwill 124,825 133,515 124,452
Other intangible assets 38,427 40,381 35,719
Property, plant and equipment 432,232 451,511 487,310
Investments in associates and joint ventures 18,524 1,125 953
Non–current loan receivables 20,261 − −
Available–for–sale investments 517 412 415
Deferred tax assets 647 1,835 1,876
TOTAL NON–CURRENT ASSETS 635,432 628,779 650,725
CURRENT ASSETS
Inventories 11,494 15,250 17,309
Trade and other receivables 109,207 135,600 120,000
Current tax assets 1,495 145 344
Cash and cash equivalents 1,849 1,338 2,431
TOTAL CURRENT ASSETS 124,045 152,333 140,084
Assets held for sale − 42,250 −
TOTAL ASSETS 759,477 823,632 790,810
17 February 2014 l Financial Statements Bulletin 2013
66
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(1,000) 31/12/2013
Restated*
31/12/2012
Restated*
1/1/2012
EQUITY AND LIABILITIES
EQUITY
Share capital 25,000 25,000 25,000
Revaluation fund −1,502 −4,924 −4,192
Invested unrestricted equity fund 113,568 113,329 113,329
Retained earnings from previous years 179,882 166,418 144,378
Profit for the period 54,030 63,749 44,730
TOTAL EQUITY 370,978 363,573 323,245
NON–CURRENT LIABILITIES
Deferred tax liabilities 54,286 64,824 62,400
Pension obligations 13,923 13,948 10,965
Non–current provisions 1,198 972 1,553
Non–current interest–bearing liabilities 174,981 191,199 210,735
Other non–current liabilities − 8,071 11,748
TOTAL NON–CURRENT LIABILITIES 244,388 279,013 297,400
CURRENT LIABILITIES
Trade payables and other liabilities 104,369 112,956 109,020
Current provisions 664 826 1,163
Current tax liabilities 5,278 10,936 5,496
Current interest–bearing liabilities 33,800 49,513 54,486
TOTAL CURRENT LIABILITIES 144,111 174,231 170,165
Liabilities held for sale − 6,545 −
TOTAL LIABILITIES 388,499 459,790 467,565
TOTAL EQUITY AND LIABILITIES 759,477 823,362 790,810
*Retrospective application of amendment to IAS 19 affecting Sweden and Norway segments
The Group has changed the presentation deferred tax assets and liabilities in the balance sheet. Deferred tax assets and liabilities are offset in the balance
sheet, in case there is a legally enforceable right to set off current tax assets against current tax liabilities and when the deferred taxes relate to the same
taxation authority. The comparative information for 2012 has been adjusted accordingly.
Consolidated statement of financial position
17 February 2014 l Financial Statements Bulletin 2013
Key figures
67
*Retrospective application of amendment to IAS 19 affecting Sweden and Norway segments**The figures are calculated on a rolling twelve month basis.
KEY FINANCIAL FIGURES 10–12/13 10–12/12 1–12/13
Restated*
1–12/12
(MEUR)
Net sales, EUR million 167.5 194.1 647.3 714.1
Change in net sales, % −13.7% 3.9% −9.4% 9.9%
EBITDA, EUR million 46.2 56.7 195.1 210.5
% of net sales 27.6% 29.2% 30.1% 29.5%
EBITA, EUR million 20.9 29.7 92.1 100.6
% net sales 12.5% 15.3% 14.2% 14.1%
EBIT, EUR million 19.0 27.7 82.3 92.5
% of net sales 11.3% 14.3% 12.7% 13.0%
EBT, EUR million 12.8 24.5 63.9 83.0
% of net sales 7.7% 12.6% 9.9% 11.6%
Profit for the reporting period, EUR million 13.9 19.9 54.0 63.7
% of net sales 8.3% 10.3% 8.3% 8.9%
Gross capital expenditure, EUR million 33.8 36.8 125.8 124.0
% of net sales 20.2% 19.0% 19.4% 17.4%
Invested capital, EUR million, end of period 579.8 604.3
Return on invested capital (ROI), %** 16.5% 18.9%
Return on equity (ROE), %** 14.7% 18.5%
Interest–bearing debt, EUR million 208.8 240.7
Net debt, EUR million 206.9 239.4
Net debt to EBITDA ratio 1.1x 1.1x
Gearing, % 55.8% 65.8%
Equity ratio, % 48.9% 44.2%
Personnel, average during reporting period 2,740 3,077
Personnel, at end of reporting period 2,592 3,005
17 February 2014 l Financial Statements Bulletin 2013
*Retrospective application of amendment to IAS 19 affecting Sweden and Norway segments**The figures are calculated on a rolling twelve month basis.
Consolidated cash flow statement
68
CONSOLIDATED CASH FLOW STATEMENT 10–12/13 10–12/12 1–12/13
Restated*
1–12/12
(EUR 1,000)
Cash flow from operating activities
Profit before taxes 12,832 24,469 63,869 83,041
Adjustments
Depreciation, amortisation and impairment charges 27,266 28,976 112,768 117,943
Adjustment for proceeds from sale of used rental equipment 1,272 2,819 8,975 12,542
Financial income and expenses 6,145 3,167 18,415 9,413
Adjustment for proceeds from disposals of subsidiaries − − −15,609 −
Other adjustments −13,459 805 4,735 −1,438
Cash flow from operating activities before change in working capital 34,055 60,237 193,153 221,501
Change in working capital
Change in trade and other receivables 10,948 −2,180 18,994 −15,367
Change in inventories 2,298 3,056 3,114 1,576
Change in non–interest–bearing liabilities 12,144 −2,022 −5,724 −11,577
Cash flow from operating activities before interest and taxes 59,446 59,090 209,537 196,134
Interest paid 2,752 −3,065 −5,270 −12,293
Interest received −810 422 1,047 3,470
Income tax paid −5,915 −2,418 −23,068 −13,325
Net cash generated from operating activities 55,472 54,029 182,245 173,985
*Retrospective application of amendment to IAS 19 affecting Sweden and Norway segments
17 February 2014 l Financial Statements Bulletin 2013
69
…….
Cash flow from investing activities
Acquisition of businesses and subsidiaries, net of cash −2,832 − −2,832 −13,940
Investment in tangible non–current asset −25,136 −34,750 −112,941 −99,177
Investment in intangible non–current assets −2,383 −2,504 −6,503 −7,598
Proceeds from sale of tangible and intangible non–current assets
(excluding used rental equipment) 98 44 360 897
Proceeds from sales of other investments − − 14,681 −
Change in loan receivables − − −1,577 −
Net cash flow from investing activities −30,252 −37,210 −108,812 −119,818
Cash flow from financing activities
Paid dividends − − −36,618 −30,147
Purchase of treasury shares − − − −2,714
Borrowings and repayments of current debt (net) −52 −26,000 −49,771 5,500
Borrowings of non–current debt −83 8,299 99,031 9,311
Repayments of non–current debt −36,354 24 −85,565 −37,211
Net cash flow from financing activities −36,489 −17,677 −72,923 −55,261
Net change in cash and cash equivalents during the financial year −11,269 −858 511 −1,094
Cash at the beginning of the period 13,118 2,195 1,338 2,431
Translation differences 0 0 0 0
Cash at the end of the period 1,849 1,338 1,849 1,338
CONSOLIDATED CASH FLOW STATEMENT 10–12/13 10–12/12 1–12/13
Restated*
1–12/12
Consolidated cash flow statement (continued)
Segment information: Net sales
70
NET SALES 10–12/13 10–12/12 1–12/13 1–12/12
(MEUR)
FINLAND
- Net sales (external) 38.4 41.4 150.9 165.0
- Inter–segment sales 0.3 0.3 1.0 1.5
SWEDEN
- Net sales (external) 52.8 56.7 206.7 207.5
- Inter–segment sales 0.0 1.2 0.6 2.4
NORWAY
- Net sales (external) 40.8 50.7 153.6 173.6
- Inter–segment sales 0.0 0.4 0.0 0.5
DENMARK
- Net sales (external) 11.8 12.2 43.7 44.6
- Inter–segment sales 0.0 0.1 0.2 0.1
EUROPE EAST
- Net sales (external) 8.4 17.3 35.4 63.0
- Inter–segment sales 0.0 0.0 0.1 0.3
EUROPE CENTRAL
- Net sales (external) 15.2 15.9 56.9 60.4
- Inter–segment sales 0.1 0.3 0.4 2.3
Elimination of sales between segments −0.4 −2.3 −2.3 −7.1
NET SALES, TOTAL 167.5 194.1 647.2 714.1
Other operating income 0.2 1.2 12.7 3.0
17 February 2014 l Financial Statements Bulletin 2013
Segment information: EBITA and EBITA-margin
71
*Retrospective application of amendment to IAS 19 affecting Sweden and Norway segments
EBITA 10–12/13 10–12/12 1–12/13
Restated*
1–12/12
(MEUR)
FINLAND 6.1 7.6 25.7 31.4
% of net sales 15.7% 18.3% 16.9% 18.9%
SWEDEN 11.1 10.2 36.6 36.3
% of net sales 21.0% 17.6% 17.6% 17.3%
NORWAY 2.8 7.1 22.0 24.6
% of net sales 6.9% 13.9% 14.3% 14.1%
DENMARK −0.7 0.9 −4.3 1.8
% of net sales −6.2% 7.0% −9.7% 4.1%
EUROPE EAST 2.7 5.0 17.3 11.1
% of net sales 32.6% 28.9% 48.8% 17.5%
EUROPE CENTRAL 0.1 0.4 −0.7 −0.7
% of net sales 0.4% 2.2% −1.2% −1.1%
Net items not allocated to segments −1.1 −1.5 −4.6 −4.0
GROUP EBIT 20.9 29.7 92.1 100.6
% of net sales 12.5% 15.3% 14.2% 14.1%
17 February 2014 l Financial Statements Bulletin 2013
EBIT and EBIT-margin by Segment
72
*Retrospective application of amendment to IAS 19 affecting Sweden and Norway segments
EBIT 10–12/13 10–12/12 1–12/13
Restated*
1–12/12
(MEUR)
FINLAND 5.8 7.3 24.6 30.2
% of net sales 14.9% 17.6% 16.2% 18.2%
SWEDEN 10.4 9.4 34.0 33.3
% of net sales 19.8% 16.3% 16.4% 15.9%
NORWAY 2.3 6.5 19.7 22.2
% of net sales 5.6% 12.7% 12.8% 12.8%
DENMARK −0.9 0.8 −4.4 1.6
% of net sales −7.2% 6.7% −10.1% 3.6%
EUROPE EAST 2.7 5.0 17.2 10.9
% of net sales 32.3% 28.7% 48.4% 17.3%
EUROPE CENTRAL 0.0 0.2 −3.7 −1.6
% of net sales −0.1% 1.1% −6.5% −2.5%
Net items not allocated to segments −1.3 −1.5 −5.0 −4.2
GROUP EBIT 19.0 27.7 82.3 92.5
% of net sales 11.3% 14.3% 12.7% 13.0%
17 February 2014 l Financial Statements Bulletin 2013
For more information:www.ramirent.com
Magnus Rosén, CEO+358 20 750 [email protected]
Jonas Söderkvist, CFO and EVP Corporate Functions+358 20 750 [email protected]
Franciska Janzon, IR+358 20 750 [email protected]