Interim report 1 January – 30 June, 2007 Kari Kallio President and CEO
15/8/2007Interim report 1-6/20072 Contents Ramirent in brief Financial statements January-June 2007 Market and outlook 2007 Appendices: –Income statement & Balance sheet –Historical financial data –Ten largest shareholders –Share price development
15/8/2007Interim report 1-6/20073 Ramirent Group in brief The leading company in Nordics, and Central and Eastern Europe in machinery and equipment rentals for construction and industry A full range of equipment, from small tools to massive tower cranes Operating in twelve countries through 296 local outlets with 3,261 employees EUR 498 million in net sales (2006) Machinery and equipment rental business since 1955 Listed on OMX Nordic Exchange Helsinki since 1998
15/8/2007Interim report 1-6/20074 Ramirent is a general rental company Formworks ModulesScaffolding Cranes Lifts and hoists Power & heating Heavy equipment Light equipmentOther
15/8/2007Interim report 1-6/20075 Access to reliable equipment where and when needed SuppliersCustomers Construction companies Industry Infrastructure Public Households One stop -shop The outlet network
15/8/2007Interim report 1-6/20076 Growing construction markets –Especially in Central and Eastern Europe Increased penetration Increased usage of equipment Consolidation of the rental industry –Fragmented industry today –Consolidation is on-going in Western and Northern Europe European rental market is estimated to EUR 22 bn Key drivers in machinery rental business
15/8/2007Interim report 1-6/20077 Customer benefits Source: European Rental Association June 2007
15/8/2007Interim report 1-6/20078 Ramirent operates in 12 countries Segments Sales R12 (MEUR) Number of employees Number of outlets Market position Finland Sweden Norway Denmark Europe1211, Group5673, Ramirent markets Ramirent Europe consists of: Russia, Estonia, Latvia, Lithuania, Poland, Hungary, Ukraine, and Czech Republic
15/8/2007Interim report 1-6/20079 Ramirent Group’s operating structure RAMIRENT - GROUP´S OPERATING STRUCTURE RENTAL OUTLET NETWORK Finland Sweden Norway Denmark Europe Local Russia equipment Estonia Pan - european fleet Latvia Lithuania Fleet management Poland Ukraine Procurement Hungary Czech Finance Republic
15/8/2007Interim report 1-6/ European competition 2004/05, 2005/06 and 2006/06 sales of rental operations, MEUR Source: IRN, June 2005, June 2006 and June 2007 Market leader in the Nordic countries and in Eastern and Central Europe:
15/8/2007Interim report 1-6/ Rank 8 worldwide Worldwide competition 2006/2007 & 2005/2006 sales of rental operations, MEUR Source: IRN, June 2007
15/8/2007Interim report 1-6/ Ramirent is targeting on profitable growth Start of growth strategy Acquisition of Bautas & Stavdal Acquisition of Altima & Treffco Acquisitions in Poland & Hungary Entering Czech Republic, acquisitions in Sweden and Finland (MEUR)
15/8/2007Interim report 1-6/ Financial targets Ramirent is targeting on profitable growth and a strong financial position The financial targets are as follows: –Earnings per share growth of at least 15% per annum –Return on invested capital annually of at least 18% –Dividend payout ratio of at least 40% of the annual net profit
15/8/2007Interim report 1-6/ Interim report 1-6/2007 – highlights Strong growth continued –Net sales +30.1% (221.8) m€. Profitability improved –Operating profit (EBIT) +63.6% 62.9 (38.5) m€ excluding property gains –EBIT-margin improved to 21.8% (17.3%) Finnish properties sold with gain of 2.4m€ EPS increased by 40% to EUR 0.42 (0.30) Strong investments before peak season continued –Capital expenditure was (93.3) m€ –Net debt increased temporarily to (190.0) m€ and gearing to 99.4% (88.5%). ROI was 28.4% (22.3%).
15/8/2007Interim report 1-6/ Key figures 1) The figures are calculated on a rolling twelve month basis 1-6/ /2006Change 1-12/2006 Net Sales %497.9 EBIT %110.3 EBIT-% 22.7%19.8% 22.2% Return on invested capital (ROI),% 1) 28.4%22.3% 28.1% Return on equity (ROE)% 1) 37.7%29.6% 34.3% Net debt, (EUR million) %186.3 Gearing, % 99.4%88.5% 70.3% Equity ratio, % 39.3%41.0% 45.4% Personnel, average 3,2612,723 2,846 Personnel, end of period 3,4842,829 3,016 Gross investments in non-current assets (EUR million) Gross investments, % of net sales 51.0%42.1% 35.4% Earnings per share (EPS), diluted, EUR %0.73
15/8/2007Interim report 1-6/ Group Net sales development (MEUR), quarterlyEBIT development (% of sales), quarterly 1)Excluding non-recurring profit amounting to 5.4 MEUR realized in Q from divestment of properties in Sweden 2)Excluding non-recurring profit amounting to 2.4 MEUR realized in Q from divestment of properties in Finland MEUR4-6/074-6/06Change1-6/071-6/06Change Net sales % % EBIT % % EBIT-margin22.3%19.8%21.8%17.3% (1(2
15/8/2007Interim report 1-6/ Finland Acquisitions from 2006 together with high utilization boosted the growth during 1-6/2007 The Finnish construction market still strong The penetration is increasing Improved market position Net sales development (MEUR), quarterly EBIT development (% of sales), quarterly MEUR4-6/074-6/06Change1-6/071-6/06Change Net sales % % EBIT % % EBIT-margin23.9%22.8%23.9%20.0% EBIT development (% of sales), quarterly 1)Excluding non-recurring profit amounting to 2.4 MEUR realized in Q from divestment of properties in Finland (1
15/8/2007Interim report 1-6/ Sweden Net sales development (MEUR), quarterly 1) Excluding non-recurring profit amounting to 5.4 MEUR realized in Q from divestment of properties MEUR4-6/074-6/06Change1-6/071-6/06Change Net sales % % EBIT 1) % % EBIT-margin20.7%14.4%20.7%13.4% EBIT development (% of sales), quarterly Strong construction market in Sweden, specially in residential housing Increased market share in lifts after focused investments Improved efficiency
15/8/2007Interim report 1-6/ Norway Net sales development (MEUR), quarterly EBIT development (% of sales), quarterly MEUR4-6/074-6/06Change1-6/071-6/06Change Net sales % % EBIT % % EBIT-margin24.9%25.0%23.6%21.9% EBIT development (% of sales), quarterly Strong market continues; lack of labour and materials limits the growth High utilization of capacity More aggressive competition on pricing Highest salary rise in Nordic countries (+5-6%)
15/8/2007Interim report 1-6/ Denmark Net sales development (MEUR), quarterly EBIT development (% of sales), quarterly MEUR4-6/074-6/06Change1-6/071-6/06Change Net sales % % EBIT % % EBIT-margin17.8%11.4%14.2%9.3% EBIT development (% of sales), quarterly Construction market slightly fading, specially residential housing but rental market still growing Improved productivity and market position Re-renting still on a high level, but decreasing after increased investments in own capacity
15/8/2007Interim report 1-6/ Ramirent Europe Net sales development (MEUR), quarterly EBIT development (% of sales), quarterly MEUR4-6/074-6/06Change1-6/071-6/06Change Net sales % % EBIT % % EBIT-margin25.6%22.7%25.6%19.3% EBIT development (% of sales), quarterly Strong construction market growth in all Ramirent Europe countries In Hungary the construction market is fading due to excessive budged deficit High demand and utilization of equipment Heavy investments in new capacity
15/8/2007Interim report 1-6/ Ramirent markets Source: Euroconstruct June Finland Sweden Norway Denmark Poland Hungary Czech Republic Estonia Latvia Lithuania Ukraine Russia 1710
15/8/2007Interim report 1-6/ Source: Euroconstruct, June 2007 Construction output in Baltic Sea Area, Eastern Europe and Russia
15/8/2007Interim report 1-6/ Market development in Ramirent countries Source: Euroconstruct June 2006 and *National construction association Construction volumes 2006 (MEUR)2007F2008F2009F Finland24,110*3.5%*3,0%-0.5% Sweden23,061*7.0%*3.0%2.2% Norway28,6605.9%-0.1%0.4% Denmark26,548*0.5%*-0.7%2.3% Europe89,680 Poland27, %11.4%14.0% Hungary10,8242.0%3.0%5.0% Estonia2, %10.0%7.0% Latvia2, %12.0%8.0% Lithuania2, %6.0%5.0% Ukraine8,0007.0%5.0% Moscow + St. Petersburg19,000 (Russia)65,0008.0%7.0% Czech Republic17,4616.1%5.8%6.2%
15/8/2007Interim report 1-6/ Machinery sold directly to rental companies as percentage of total machinery sales (Source: International Rental News/Kaplan) Penetration of machinery rental services in Europe
15/8/2007Interim report 1-6/ Outlook 2007 The good market conditions expected to continue 2007 –Nordic countries: Ramirent estimates total construction market will grow at the rate of 3-4% The backlog of the largest Nordic construction companies has grown The scarce supply of labour and building material may limit the growth. –Central and Eastern European markets Ramirent estimates a further solid growth. Rental penetration rate is expected to further rise –Ramirent estimates that the machinery rental markets will grow faster than the construction markets in Ramirent is well positioned –Heavy investments in new capacity –Ramirent will also continue to search for bolt-on acquisitions –Ramirent expects to clearly exceed its financial targets.
Ramirent Oyj P.O.BOX 116 Äyritie 12 A FI Vantaa Further information: Kari Kallio, CEO tel: Heli Iisakka, CFO tel:
15/8/2007Interim report 1-6/ Income statement Includes non-recurring profit amounting to 5.4 MEUR realized in Q from divestment of properties in Sweden and also non-recurring profit amounting to 2.4 MEUR realized in Q from divestment of properties in Finland
15/8/2007Interim report 1-6/ Balance sheet, Assets
15/8/2007Interim report 1-6/ Balance sheet, Equity and liabilities
15/8/2007Interim report 1-6/ Condensed cash flow statement
15/8/2007Interim report 1-6/ Net debt and gearing MEUR
15/8/2007Interim report 1-6/ Equity and equity ratio MEUR
15/8/2007Interim report 1-6/ Ten largest shareholders on 30 June, 2007
15/8/2007Interim report 1-6/ Latest stock price