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Interim report 1 January – 31 March, 2006
Kari KallioPresident and CEO
09/06/2008 Interim report Q1 2006 2
Contents
Ramirent in brief
Interim report Q1 2006
Market and outlook 2006
Appendices– Historical financial data– Ten largest shareholders
09/06/2008 Interim report Q1 2006 3
Ramirent Group in brief
The leading company in Northern 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 more than 270 local outlets with 2.700 employees
EUR 389 million in net sales (2005)
Listed on Helsinki Stock Exchange since 1998
09/06/2008 Interim report Q1 2006 4
Finland Sweden Norway Denmark Europe
Purchases
Product lines
Rental outlet network
Marketing
Ramirent Group’s operating structure
09/06/2008 Interim report Q1 2006 5
Rental outlet network
Local equipment
Outlet
Local equipment
Outlet
Local equipment
Outlet
Local equipment
Outlet
Local equipment
Outlet
Machinery and equipment pooling
Group machinery & equipment
09/06/2008 Interim report Q1 2006 6
Strong geographical presence
2702.678389Total
18979656Europe
11720042Denmark
136548101Norway
238576105Sweden
19055885Finland
Market position
Number of outlets
Number of employees
Net sales (MEUR)
1-12/2005
09/06/2008 Interim report Q1 2006 7
European competition 2004/2005 sales of rental operations, MEUR (Source: European Rental News, June 2005)
0 100 200 300 400
GL Events
HSS Hire Service Group
Algeco
Ashtead Plant Hire (A-Plant)
Select Plant Hire Company
Speedy Hire Centres
RK
Ramirent
Loxam
Hewden Stuart
Market leader in the Nordic countries and in Eastern and Central Europe
09/06/2008 Interim report Q1 2006 8
Annual sales growth since 1998
0
50
100
150
200
250
300
350
400
1998 1999 2000 2001 2002 2003 2004 2005
Start of growth strategy
Acquisition of Bautas
Acquisition of Altima
MEUR European growth strategy
09/06/2008 Interim report Q1 2006 9
Interim report Q1 2006 – highlightsStrong growth of the net sales – Growing market and increased penetration in all our countries– Heavy investments during 2005 increased our own capacity– High rate of utilisation – Benefits of our strong market position
Significantly improved profit margins – Increased net sales – Improved profitability in all countries, especially in Sweden– Improved efficiency by control of the fixed costs
09/06/2008 Interim report Q1 2006 10
Income statement
3,9901,2201,464Financial income
1.350.090.59Earnings per share (EPS), non-diluted, EUR1.340.090.59Earnings per share (EPS), diluted, EUR
35,5112,35415,770NET PROFIT FOR THE PERIOD-13,144-883-3,617Income taxes
48,6553,23719,387PROFIT BEFORE TAXES-11,290-2,883-2,854Financial expenses
55,9554,90020,777OPERATING PROFIT-72,974-16,234-20,330Other operating expenses-51,166-11,660-13,878Depreciation
-112,025-25,490-29,737Employee benefit expenses-98,658-19,777-26,112Materials and services
390,77878,061110,834TOTAL1,8024225,729Other operating income
388,97677,639105,105Net sales1-12/051-3/20051-3/2006(EUR 1,000)
09/06/2008 Interim report Q1 2006 11
Balance sheet, Assets
464,289409,832479,757TOTAL ASSETS
89,32675,69691,242CURRENT ASSETS, TOTAL1,3204,1721,273Cash and cash equivalents
72,72657,55974,619Trade and other receivables15,28013,96515,350Inventories
CURRENT ASSETS
374,964334,136388,515NON-CURRENT ASSETS, TOTAL1,4213,3941,280Deferred tax assets
414415415Available-for-sale financial assets1,3897371,213Other intangible assets
73,21167,59373,060Goodwill298,529261,997312,547Tangible assets
NON-CURRENT ASSETS
31.12.200531.3.200531.3.2006(EUR 1,000)
09/06/2008 Interim report Q1 2006 12
Balance sheet, Equity and liabilities
464,289409,832479,757TOTAL EQUITY AND LIABILITIES
267,295244,536266,370LIABILITIES, TOTAL
92,16978,26198,325CURRENT LIABILITIES, TOTAL 21,35223,02420,139Interest-bearing current liabilities
000Provisions70,81755,23778,186Trade payables and other liabilities
CURRENT LIABILITIES
175,126166,275168,045NON-CURRENT LIABILITIES, TOTAL 146,121149,367138,684Interest-bearing non-current liabilities
7,5302,8047,655Pension obligations21,47514,10421,706Deferred tax liabilities
NON-CURRENT LIABILITIES
196,994165,296213,387EQUITY, TOTAL8219464Minority interest
196,912165,102213,324PARENT COMPANY SHAREHOLDERS’ EQUITY62,68335,24877,673Retained earnings
122,788118,719124,116Share premium account11,44111,13511,534Share capital
EQUITY
31.12.200531.3.200531.3.2006(EUR 1,000)
09/06/2008 Interim report Q1 2006 13
Key figures
29.029.139.4Gross investments, % of net sales
112.622.641.4
Gross investments in non-current assets (EUR million)
2,6782,3772,694Personnel, end of period2,6142,3592,686Personnel, average
42.5%40.4%44.5%Equity ratio, %84.3%101.8%73.8%Gearing, %17.2%11.4%21.4%
Return on invested capital (ROI), %
349.6343.7354.9Invested capital (EUR million), end of period
166.2168.2157.6Net debt, (EUR million)167.5172.4158.8
Interest-bearing debt, (EUR million)
1-12/051-3/051-3/06
09/06/2008 Interim report Q1 2006 14
Quarterly net sales 2004 – 2006 (MEUR)
61.3
80.5 84.390.2
77.6
95.1103.3
113.0105.1
0.0
20.0
40.0
60.0
80.0
100.0
120.0
Q1 Q2 Q3 Q4
Net sales 2004 Net sales 2005 Net sales 2006
MEUR
09/06/2008 Interim report Q1 2006 15
Quarterly EBIT 2004 – 2006 (%)(excluding extra-ordinary profits)
3.9 %6.3 %
16.8 %
12.6 %
6.3%
13.9%
20.4%
14.8%14.6%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
Q1 Q2 Q3 Q4
EBIT 2004 EBIT 2005 EBIT 2006
09/06/2008 Interim report Q1 2006 16
Net sales per segment, Q1 2005 & 2006
Finland20%
Sweden30%
Norway28%
Denmark11%
Europe11% Finland
20%
Sweden27%
Norway28%
Denmark10%
Europe15%
Q1 2005 Q1 2006
09/06/2008 Interim report Q1 2006 17
EBIT per segment, Q1 2005 & 2006
Finland36%
Sweden13%
Norway38%
Denmark2%
Europe11% Finland
22%
Sweden24%Norway
34%
Denmark5%
Europe15%
Q1 2005 Q1 2006
09/06/2008 Interim report Q1 2006 18
Net sales per segment, quarterly (MEUR) (excluding extra ordinary profits)
15.6
23.522.0
8.2 8.5
21.5
26.724.3
10.712.0
24.7 24.826.0
11.3
16.9
23.0
28.5
12.5
19.020.7
10.2
15.5
30.229.229.9
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
Finland Sweden Norway Denmark RamirentEurope
1-3/05 4-6/05 7-9/05 10-12/05 1-3/06
MEUR
09/06/2008 Interim report Q1 2006 19
EBIT per segment, quarterly (%)
13 %
3 %
10 %
1 %
7 %
21 %
8 %
19 %
8 %
18 %
32 %
12 %
16 %14 %
19 %
16 %
25 %
19 %
14 %12 %13 %
25 %
18 %
13 %
7 %
0 %
5 %
10 %
15 %
20 %
25 %
30 %
35 %
Finland Sweden Norway Denmark RamirentEurope
1-3/05 4-6/05 7-9/05 10-12/05 1-3/06
MEUR
09/06/2008 Interim report Q1 2006 20
Finland
The growth of all construction markets was unexpectedly high during Q1On the shipyards the volume of orders was very goodGood control of the fixed costsWe have a strong position on the marketPositive market forecasts for the rest of the year
76.9%
32.7%
Change
13.1%
2.0
15.6
1-3/05
17.5%EBIT-margin
3.6EBIT
20.7Net sales
1-3/06MEUR
09/06/2008 Interim report Q1 2006 21
Sweden
Strong construction market development in SwedenGood control of the fixed costs after rearrangement of the organisation during 2005Heavy investments in new product groups (lifts) Good development in Stockholm areaPositive market outlook for the rest of the year
461.9%
27.4%
Change
3.0%
0.7
23.5
1-3/05
13.0%EBIT-margin
3.9EBIT 1)
29.9Net sales
1-3/06MEUR
1) Excluding non-recurring profit amounting to 5.4 MEUR realized in Q1 2006 from divestment of properties
09/06/2008 Interim report Q1 2006 22
Norway
Strong development of the construction marketGood control of the fixed costsHigh utilisation rateGood weather conditions for our product ranges during Q1Positive market outlook for the rest of the year
169.7%
32.9%
Change
9.5%
2.1
22.0
1-3/05
19.4%EBIT-margin
5.7EBIT
29.2Net sales
1-3/06MEUR
09/06/2008 Interim report Q1 2006 23
Denmark
High market activities during Q1Closing down one of the loss making product lines ongoing -improves the profit level in DenmarkRe-renting increased due to the lack of capacity – negative impact on the profit levelStable market situation for the rest of the year
656.0%
24.6%
Change
1.2%
0.1
8.2
1-3/05
7.4%EBIT-margin
0.8EBIT
10.2Net sales
1-3/06MEUR
09/06/2008 Interim report Q1 2006 24
Ramirent Europe
High level of market activities in all of our European countriesPenetration is increasing Very high utilisation rateWe have a very strong position on the marketPositive market outlook for the rest of the year
298.7%
81.9%
Change
7.1%
0.6
8.5
1-3/05
15.5%EBIT-margin
2.4EBIT
15.5Net sales
1-3/06MEUR
09/06/2008 Interim report Q1 2006 25
Subscription of shares– Based on the 2002A and 2002B option rights, 30,200 new
Ramirent shares were subscribed on 8 May, 2006. The subscription price was, according to the terms of the options programme, 5.98 euros per share. The corresponding EUR 12,986 increase in the share capital is expected to be entered in the Trade Register on 15 May, 2006. After the increase the share capital is EUR 11,547,223.87 and the number of shares is 26,854,009
Events after the review period
09/06/2008 Interim report Q1 2006 26
Economic benefits of renting instead of owning the equipment
Outsourcing of non-core activities is a trend
Relatively low general penetration level enhances growth
Several factors drive and stimulate the consolidation– Economic benefits favour larger size (scale, financial strength,
efficiency, risk exposure)– Market is very fragmented– OEM’s interest to secure their access to end customer
Machinery and equipment rental market is a growth market
09/06/2008 Interim report Q1 2006 27
Source Euroconstruct Nov 2005
Construction market in Europe
09/06/2008 Interim report Q1 2006 28
Source Euroconstruct Nov 2005
Market development in Ramirent countries
5,6%5,7%5,7%5,5%12 361Czechia
5,0%7,0%7,0%9,0%40 000(Russia)
6 800Moscow + St. Petersburg
10,0%10,0%10,0%18,0%5 000Ukraine
10,0%10,0%15,0%17,0%1 800Estonia
10,0%10,0%18,0%19,0%1 400Latvia
10,0%10,0%12,0%13,0%1 700Lithuania
13,0%12,1%6,7%4,4%11 300Hungary
8,2%7,2%8,9%6,3%20 000Poland
48 000Europe
1,7%2,8%1,5%1,7%22 832Denmark
-0,3%-0,2%1,4%5,1%23 941Norway
2,2%4,2%4,9%6,4%20 161Sweden
-0,8%-0,8%2,9%4,3%20 140Finland
2008F2007F2006F2005F2004
(MEUR)Construction volumes
09/06/2008 Interim report Q1 2006 29
Machinery sold directly to rental companies as percentage of total machinery sales (Source: International Rental News/Kaplan)
0% 20% 40% 60% 80% 100%
Europe (ex. UK) 2010E
Europe (ex. UK)
Poland
Baltics
Finland
Norway
Denmark
Sweden
UK
Penetration of machinery rental services in Europe
09/06/2008 Interim report Q1 2006 30
Outlook 2006The construction market is expected to be on a high level in all of our markets during the rest of the year
The utilisation rate during Q1 was unexpectedly high – there is a risk of lack of capacity during the high season
Risk for higher re-renting with lower margins
The fixed costs are under control
The growth of the net sales will be on a good level, however thegrowth for the rest of the year is expected to be on a lower level than during the Q1 (+35.4%)
The profit before taxes is expected to grow clearly from the previous year due to the higher efficiency of the local outlets
Ramirent Oyj
P.O.BOX 31Tapulikaupungintie 37
FI-00751 Helsinki+358 20 750 200
www.ramirent.com
09/06/2008 Interim report Q1 2006 32
Net sales and EBIT-%
0
50
100
150
200
250
300
350
400
450
1998 1999 2000 2001 2002 2003 2004 20050%
5%
10%
15%
20%
25%
30%
Net sales EBIT (%)
MEUR
09/06/2008 Interim report Q1 2006 33
Capital expenditures
0
20
40
60
80
100
120
140
160
180
1998 1999 2000 2001 2002 2003 2004 20050%
20%
40%
60%
80%
100%
120%
Capital expenditures Capital expenditures / Net sales (%)
MEUR
09/06/2008 Interim report Q1 2006 34
Invested capital and ROI
0
50
100
150
200
250
300
350
400
1998 1999 2000 2001 2002 2003 2004 20050%
5%
10%
15%
20%
25%
30%
35%
Invested capital ROI (%)
MEUR
09/06/2008 Interim report Q1 2006 35
Net debt and gearing
0
20
40
60
80
100
120
140
160
180
1998 1999 2000 2001 2002 2003 2004 20050 %
20 %
40 %
60 %
80 %
100 %
120 %
140 %
160 %
180 %
Net debt Gearing (%)
MEUR
09/06/2008 Interim report Q1 2006 36
Equity and equity ratio
0
50
100
150
200
250
300
1998 1999 2000 2001 2002 2003 2004 20050%
10%
20%
30%
40%
50%
60%
Equity Equity ratio (%)
MEUR
09/06/2008 Interim report Q1 2006 37
Dividends and payout ratio
0,0
2,0
4,0
6,0
8,0
10,0
12,0
14,0
16,0
18,0
1998 1999 2000 2001 2002 2003 2004 20050%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Dividends Payout ratio (%)
MEUR
09/06/2008 Interim report Q1 2006 38
Ten largest shareholders on 31 March, 2006
100.00 %26 823 809Total
21.13 %5 669 064Other shareholders
33.09 %8 876 197Nominee-registered shareholders
0.70 %188 904Varma Mutual Pension Insurance Company
0.71 %190 600OP-Suomi Kasvu Sijoitusrahasto
0.75 %200 000EQ Pikkujättiläiset/EQ Rahastoyhtiö Oy
0.83 %222 300FIM Fenno Sijoitusrahasto
1.01 %271 248Fondita Nordic Small Cap Placfond
1.39 %371 586Odin Forvaltnings AS
1.66 %445 900Ilmarinen Mutual Pension Insurance Company
1.93 %517 940Odin Norden
10.09 %2 707 800Oy Julius Tallberg Ab
26.70 %7 162 270Nordstjernan AB
and votesSharesShareholder
% of shares