RAMIRENT PLC STOCK EXCHANGE RELEASE 15.2.2007 at 8:00 a.m.
RAMIRENT GROUPS FINANCIAL STATEMENTS FOR 2006
PROFITABLE GROWTH CONTINUES - RAMIRENT DOUBLED THE NET PROFIT
- Net sales increased by 28.0% and totalled EUR 497.9 (389.0)
million.
- Operating profit before depreciation (EBITDA) grew by 60.2% to
EUR 171.6 (107.1) million.
- Operating profit (EBIT) increased by 97.0% to EUR 110.3 (56.0)
million.
- Profit before taxes (EBT) grew by 111.3% to EUR 102.9 (48.7)
million.
- Earnings per share (non-diluted) were EUR 2.95 (1.35). Earnings
per share (diluted) were 2.93 (1.34).
- Net debt amounted to EUR 186.3 (166.2) million, whilst gearing
was 70.3% (84.3%).
- The equity ratio was 45.4% (42.5%).
- The Board of Directors proposes to double the dividend to EUR
1.20 per share (0.60).
- The Board of Directors proposes a free issue for the current
shareholders so that one (1) old share entitles to receive
additional three (3) shares without any payment (equal to a
split).
KEY FIGURES
(EUR million) 10-12/2006 10-12/2005 1-12/2006 1-12/2005
Net sales 146.2 113.0 497.9 389.0
Operating profit
before depreciation
(EBITDA) 49.2 30.4 171.6 107.1
Operating profit
(EBIT) 32.5 16.8 110.3 56.0
% of net sales 22.2 14.8% 22.2 14.4%
Profit before taxes
(EBT) 30.2 15.3 102.9 48.7
Net profit for the
period 22.1 9.9 79.2 35.5
Earnings per share
(EPS), diluted, EUR 0.82 0.37 2.93 1.34
Earnings per share
(EPS), non-diluted,
EUR 0.82 0.38 2.95 1.35
Equity per share,
diluted, EUR 9.74 7.35
Equity per share,
non-diluted, EUR 9.80 7.40
Net debt 186.3 166.2
Gross capital
expenditure 176.5 112.6
Return on invested
capital (ROI), % 1) 28.1% 17.2%
Equity ratio, % 45.4% 42.5%
Gearing, % 70.3% 84.3%
Personnel, average 2,846 2,614
Personnel, at the
end of period 3,016 2,678
1) The figures are calculated on a rolling twelve month basis.
OPERATING ENVIRONMENT
Ramirent is a Company focused on construction machinery and
equipment rentals, operating in the Nordic, Eastern and Central
European markets. The Group is headquartered in Helsinki and
has 288 (270) permanent outlets in twelve countries.
Construction volumes grew, according to the Companys estimate, in
the Nordic region by some 6%, whilst growth rates were
considerably higher in the Eastern and Central European countries.
According to the Companys estimate, the machinery rental markets
in 2006 grew faster than the construction markets in all Nordic
countries. In addition, the market has continued to grow strongly
in the Eastern and Central European countries in which Ramirent
operates, i.e. Russia, the Baltic States, Poland, Hungary,
Ukraine, and the Czech Republic.
Based on the growth rates the Group realized in 2006, Ramirent
estimates the Company last year reinforced market positions in all
the major countries the Group covers.
GROUP NET SALES AND PROFIT
Favourable weather and market conditions continued during the
fourth quarter in all of Ramirents markets. Net sales increased
by 29.4% to EUR 146.2 (113.0) million due to heavy investments in
new capacity this year and due to high utilization levels in all
segments. The growth was strongest in Ramirent Europe and Finland
where the net sales during the fourth quarter increased by 67.4%
in Ramirent Europe and 27,8% in Finland. The operating profit also
improved significantly by 93.5% to EUR 32.5 (16.8) million, due to
increased net sales and continuous control of costs. The profit
growth was strongest in Ramirent Europe and in Sweden.
The Groups net sales for the full-year 2006 increased by 28.0% to
EUR 497.9 (389.0) million, of which Finland accounted for EUR
102.7 (84.8) million, Sweden for EUR 130.9 (105.1) million, Norway
for EUR 120.3 (100.8) million, Denmark for EUR 50.0 (42.7)
million, and Ramirent Europe for EUR 96.4 (56.4) million. The
majority of the growth is organic.
The Groups operating profit (EBIT) for the year under review was
EUR 110.3 (56.0) million, of which Finland accounted for EUR 25.7
(18.1) million, Sweden for EUR 27.9 (including a non-recurring
gain of EUR 5.4 million from divestment of properties in the first
quarter) (9.2) million, Norway for EUR 27.2 (15.7) million,
Denmark for EUR 7.3 (4.2) million, and Ramirent Europe for EUR
26.2 (11.8) million. The Groups operating margin improved further
to 22.2% (14.4%).
The Groups profit before taxes for the review period was EUR
102.9 (48.7) million. The net profit for the year was EUR 79.2
(35.5) million. The increase in the Companys profits compared to
the previous year was mainly due to the growth in net sales, high
capacity utilization and good control of fixed costs.
Additionally, the profit includes the tax-free profit realized
from the divestment of properties in Sweden in the first quarter,
amounting to EUR 5.4 million. The return on invested capital is
28.1% (17.2%) and the return on equity was 34.3% (19.6%).
CAPITAL EXPENDITURE AND DEPRECIATION
Group companies gross capital expenditure on non-current assets
totalled EUR 176.5 (112.6) million, of which EUR 165.4 million was
attributable to investments in machinery and equipment. The
significant increase in capital expenditures reflects the Groups
goal to expand the rental fleet capacity to meet customer demands
and to develop the product range and outlet network to serve
customers better.
The total depreciation of non-current assets during the year under
review amounted to EUR 61.2 (51.2) million, of which EUR 58.4
million consisted of depreciation of machinery and equipment.
Goodwill totalled EUR 76.1 (73.2) million at the end of the year
under review.
FINANCIAL POSITION AND BALANCE SHEET
The Groups twelve-month cash flow from operating activities was
positive, amounting to EUR 133.9 (87.2) million. Cash flow from
investing activities amounted to EUR 140.7 (-92.2) million due to
increased capital expenditure. Cash flow from financing activities
totalled EUR 6.6 (-0.8) million. At the end of the year under
review, liquid assets stood at EUR 1.1 (1.3) million, resulting in
a net change in cash of EUR -0.2 (-5.8) million compared to the
previous year-end.
Ramirents interest-bearing liabilities totalled EUR 187.4 (167.5)
million at the end of the year under review, representing an
increase by EUR 19.9 million from year-end 2005. Net debt amounted
to EUR 186.3 (166.2) million at the end of the year under review.
Gearing amounted to 70.3% (84.3%).
The nominal value of the interest rate swaps at the end of the
year was EUR 49.9 (65.1) million.
Total assets amounted to EUR 584.3 (464.3) million and the Groups
equity ratio was 45.4% (42.5%).
FINANCIAL TARGETS
Ramirents Board of Directors adopted new financial targets for
the Group in 2006. Ramirent is focusing on profitable growth and
the target is to have a strong financial position that provides
financial stability for long-term business decisions. The new
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.
CHANGES IN GROUP MANAGEMENT
The Board of Directors of Ramirent Plc appointed Kari Kallio
(M.Sc., Eng.) as Chief Executive Officer of the Ramirent Group as
of 1 January, 2006.
Mrs. Heli Iisakka, M.Sc. (Econ.), was appointed Chief Financial
Officer (CFO) of Ramirent Plc as of 1 October, 2006. She is
responsible for the Groups financial administration, treasury,
financial reporting, and IT administration.
Mr. Thorolf Hannus, M.Sc. (Econ.), was appointed Chief of Group
Strategic and Business Planning as of 1 October, 2006. He is
responsible for the strategic planning and development of the
business model of the group.
BUSINESS EXPANSION AND ACQUISITIONS DURING THE YEAR UNDER REVIEW
Ramirent has established a leading position in the Nordic region,
and in Eastern and Central European markets. Favorable market
conditions and a competitive business model allow the Group to
expand business operations and realize good returns on
investments. This is the foundation of the Ramirent growth
strategy, which allows the Group to allocate significant
investments to serve local customer demand, whilst maintaining a
strong financial base and realizing economies at the Group level
through utilization of the Ramirent platform. According to the
current Ramirent growth strategy, the Group reinvests a
significant part of the free cash flow in own capacity and bolt-on
acquisitions, in order to broaden the customer base and to
strengthen the product offering.
On 21 February, 2006, the Board of Directors of Ramirent Plc
decided to expand the Groups business operations to cover the
Czech Republic. Operations started in June 2006 and are developing
as expected.
On 22 February, 2006, Ramirent signed an agreement under which it
acquired the remaining 25% minority interest in its Polish
subsidiary Ramirent Scaffolding Sp.z.o.o.
On 14 August, 2006, Ramirent Plc signed an agreement under which
it acquired Konevuokraamo P. Salminen Oy in Finland, which
operates in rental of construction machinery and equipment and is
specialized in heavy equipment. The acquisition strengthens
Ramirents position in the rental business in Finland by widening
product offering to heavy equipment to be able to serve also civil
engineering construction better.
On 24 October, 2006, Ramirent Plc signed an agreement on the
acquisition of the personnel lift rental business of Lainaväline
HS Oy as of 1 November, 2006, including the business names of
sister companies Lainaväline NKP and VIP-Lift. The acquisition
increased the personnel lift capacity of Ramirent and strengthened
further Ramirents position especially in Finnish shipyards.
On 1 November, 2006, Ramirents Swedish subsidiary Ramirent AB
signed an agreement on the acquisition of the machinery rental
company Mavex in Sweden. The acquisition supports Ramirents
strategy to increase the outlet network in Sweden and will
strengthen the position on the booming market in the Northern
Sweden.
On 30 November, 2006, Ramirent Plc signed an agreement on the
acquisition of RSK-Järvinen Oy in Finland. The company is
specialized in temporary electrification and heating at
construction sites. The acquisition supports Ramirents decision
to develop site services related to the machinery rental.
BUSINESS SEGMENTS
During the review period, Ramirent Groups business operations
developed strongly in all business segments compared to the
previous year. In particular, the operations of Ramirent Sweden
and Europe developed well during the period.
From January 2006, certain Group costs are no longer attributable
to the Finland segment. Instead, they are reported separately as
Costs not allocated to the business segments. Previous periods
have been restated with regard to this change.
Finland
In Finland, business operations were very active in 2006.
Especially the market on shipyards and industry was intensified.
The market position was also strengthened by new acquisitions. Net
sales increased by 21.1% compared to the previous year and
totalled EUR 102.7 (84.8) million. Compared to the previous year,
the profit of the Finnish operations improved primarily as a
result of increased net sales and high capacity utilization. The
operating profit (EBIT) was EUR 25.7 (18.1) million and the
operating profit margin (EBIT-%) was 25.0% (21.4%).
Sweden
In Sweden, business operations improved significantly during the
year under review due to the favorable market situation, increased
investments in new product groups and the opening of new outlets.
Net sales grew by 24.5% compared to the previous year and were EUR
130.9 (105.1) million. Profit improved mainly due to increased net
sales and high capacity utilization. The operating profit (EBIT),
excluding profit from the divestment of properties, was EUR 22.5
(9.3) million, whereas the operating profit margin (EBIT-%) was
17.2% (8.8%).
Norway
In Norway, business operations developed positively. During the
review period net sales increased by 19.4% compared to the
previous year and totalled EUR 120.3 (100.8) million. The profit
of the Norwegian operations improved in comparison with the
previous year primarily due to increased net sales and high
capacity utilization. The operating profit (EBIT) was EUR 27.2
(15.7) million and the operating profit margin (EBIT-%) was 22.6%
(15.5%).
Denmark
In Denmark, business operations grew during the year under review.
The closing of a non-profitable product line in Denmark has been
completed. One reason for the lower operating margin in Denmark,
compared to the rest of the Group, is a higher share of re-renting
of machinery and equipment. Net sales grew by 17.1% totalling EUR
50.0 (42.7) million. Operations grew organically due to the
improved situation in the construction market. The operating
profit (EBIT) was EUR 7.3 (4.2) million, whereas the operating
profit margin (EBIT-%) was 14.6% (9.8%).
Ramirent Europe
Ramirents business operations in Eastern and Central European
countries (Russia, Estonia, Latvia, Lithuania, Poland, Hungary,
Ukraine, and the Czech Republic) developed very positively in
2006. Heavy investments in new capacity and high utilization
further improved the market position of Ramirent. Compared to the
previous year, net sales increased by 70.9% to EUR 96.4 (56.4)
million. Most of the growth was organic. The operating profit
(EBIT) improved to EUR 26.2 (11.8) million, the operating profit
margin (EBIT-%) being 27.2% (21.0%).
PERSONNEL
In the year under review, the Group employed an average of 2,846
(2,614) people, of whom 577 (581) worked in the Finnish
operations, 572 (566) in the Swedish operations, 567 (536) in the
Norwegian operations, 194 (194) in the Danish operations, and 936
(737) in the European operations.
SHARES AND SHARE CAPITAL
During the review period, a total of 395,936 new shares were
subscribed with Ramirent Plc's 2002A and 2002B options, due to
which the Companys share capital was increased by EUR 170,252.48.
The increases were entered in the Finnish Trade Register on 1
March 2006, 15 May 2006, 21 August 2006, 14 November 2006, and 22
December 2006.
As a part of the purchase price of Konevuokraamo P. Salminen Oy,
the Board of Directors of Ramirent directed a new issue of 30,000
Ramirent shares to the sellers of Konevuokraamo P. Salminen Oy. As
a consequence of the directed share issue, the share capital of
Ramirent was raised by EUR 12,900.00. Trading with these shares
commenced on the Helsinki Stock Exchange on 28 August, 2006.
On 31 December, 2006, Ramirents share capital was EUR
11,624,510.35 divided into 27,033,745 shares.
DISTRIBUTION OF DIVIDENDS IN 2006
The Annual General Meeting in 2006 decided on a dividend of EUR
0.60 per share. The dividend was paid on 26,823,809 shares on 25
April, 2006.
BOARD AUTHORISATIONS
The Companys Board of Directors has the following
authorisations:
- to decide on the acquisition of the Companys own shares, using
its distributable funds on the condition that the shares will be
acquired in order to develop the capital structure of the Company,
and to be used as consideration in corporate or business
acquisitions. The shares can be also used as incentives for key
persons. The maximum number of the Companys own shares to be
acquired is 1,341,190 the aggregate counter book value of which
corresponds to approximately 5% of the share capital and voting
rights attached to all the shares of the Company at the time of
the Annual General Meeting. Pursuant to the Companies Act, the
aggregate counter-book value of the Companys own shares belonging
to the Company and its subsidiaries or the share of voting rights
attached to them may not exceed 10% of the share capital or the
voting rights attached to all the shares of the Company. The
shares will be acquired as to be decided by the Board of Directors
either through public trading on the Helsinki Stock Exchange where
the authorisation entitles the Board to acquire shares in
deviation from the proportional holdings of the shareholders or by
a public offer to acquire shares in proportion to the holdings of
the shareholders and on identical terms for all shareholders. The
shares will be acquired at their market value in public trading at
the time of acquisition.
- to decide on the disposal of the Companys own shares acquired
pursuant to the authorisation. The authorisation is valid for no
more than 1,341,190 shares with a counter book value of EUR 0.43.
The Board of Directors is authorised to decide to whom and in what
order the Companys own shares will be disposed of. The Board may
decide on the disposal of the Companys own shares in deviation
from the pre-emptive rights of shareholders to acquire the
Companys shares. The shares can be used as consideration in cases
of corporate or business acquisitions, or when the Company
otherwise acquires business-related assets in a way and to the
extent decided by the Board of Directors. The shares can be also
used as incentives for key persons. From the point of view of the
Company, the aforementioned situations constitute a valid economic
reason for deviating from the shareholders pre-emptive right. The
shares can be disposed of also against other forms of
consideration than cash. The transfer price must be no less than
the market price quoted on the Helsinki Stock Exchange at the time
of disposal.
- to decide on a directed share issue and to decide on the
increase of share capital by one or more issues entitling for the
subscription of a maximum of 1,341,190 new shares of the Company,
i.e. a maximum of approximately 5% of all the registered shares at
the time of the Annual General Meeting, and pursuant to which the
Companys share capital can be raised by a total of no more than
EUR 576,711.70. The authorisation entitles the Board to deviate
from the pre-emptive rights of shareholders to subscribe for new
shares, and to decide on the subscription prices and terms. The
authorisation can be used in deviation from the pre-emptive rights
of shareholders, provided that there are weighty financial reasons
from the Companys perspective, such as the financing of corporate
or business acquisitions or other arrangements affecting the
development of the Companys business operations. The decision
cannot be made for the benefit of those included in the inner
circle of the Company. If the share capital is increased by a
share issue, the Board of Directors will be entitled to decide,
whether the shares can be subscribed for against contribution in
kind, or otherwise on particular conditions. The authorisation was
partly used during the review period for the acquisition of
Konevuokraamo P. Salminen Oy. The Companys share capital was
increased, by a decision of the Board on 14 August 2006, by EUR
12,900.00 and 30,000 new shares were issued.
SHARE TURNOVER AND PERFORMANCE
During the year under review, 17,431,590 (19,136,805) shares were
traded on the Helsinki Stock Exchange at a total value of EUR
541.27 (293.73) million, i.e. 63.6% (70.7%) of Ramirents total
stock was traded. The highest price quoted in the year under
review was EUR 47.75 (24.85) and the lowest EUR 21.50 (9.85). The
average price of the year under review was EUR 31.10 (15.67) and
the last quotation on the years last trading day was EUR 44.80
(24.85). The Companys market value at the end of the year under
review was EUR 1,211,111,776 (661,204,054).
SHAREHOLDERS AND A DISCLOSURE
The ten principal shareholders on 31 December, 2006 were:
Shares % of
shares
and votes
Nordstjernan AB 7,162,270 26.49 %
Oy Julius Tallberg Ab 2,730,200 10.10 %
Ilmarinen Mutual Pension Insurance
Company 953,719 3.53 %
Odin Norden 525,240 1.94 %
Odin Forvaltnings AS 346,062 1.28 %
Odin Forvalting AS/Odin Europa SMB 231,795 0.86 %
Fondita Nordic Small Cap Placfond 215,000 0.80 %
Varma Mutual Pension Insurance
Company 178,904 0.66 %
Veritas Pension Insurance Company
Ltd. 166,700 0.62 %
Ruzsbaczky István 118,266 0.44 %
Nominee-registered shareholders 10,327,381 38.20 %
Other shareholders 4,078,208 15.09 %
Totally 27,033,745 100.0 %
During the year under review, Ramirent received a disclosure under
chapter 2, section 9 of the Securities Markets Act. The number of
Ramirent shares managed by Grantham, Mayo, Van Otterloo & Co. LLC
on behalf of its investment advisory clients decreased by a share
transaction executed on 24 February, 2006 to 1,083,920 shares,
representing 4.07% of Ramirent Plcs shares and voting rights.
2002 OPTIONS
Ramirent Plcs Extraordinary General Meeting decided on 12
December, 2002 to establish an options program. The number of the
options was 500,000. Of these, 250,000 options were designated
2002A, and 250,000 options were designated 2002B.
The Ramirent 2002B options were transferred to the book-entry
system and trading with them began on 3 October, 2005. Trading
with the 2002A options ended on 31 October, 2006.
At the year end, the number of 2002A options was 0 whereas the
number of 2002B options was 70,432. After the balance sheet date,
16,330 new shares were subscribed for during the subscription
window that ended on 1 February, 2007. After these subscriptions
there are 62,267 Ramirent 2002B option rights outstanding based on
which 124,534 Ramirent shares can be subscribed for.
The share subscription price when exercising the 2002B options is
the trade-weighted average price of the Ramirent Plc share on the
Helsinki Stock Exchange, 1 October - 30 November, 2002. The share
subscription price is reduced prior to a share subscription by the
amount of decided dividends on the record date of each dividend
distribution. At the year end, each option entitles its holder to
subscribe to two shares with a counter-book value of EUR 0.43 for
a total subscription price of EUR 11.96. The subscription price of
one share is EUR 5.98. Based on the option rights, the Companys
share capital may be increased by a maximum of EUR 60,571.52. The
share subscription period of the 2002B options is 1 October 2005 -
31 October, 2007.
EVENTS AFTER THE REVIEW PERIOD
Finnish business transfer to Ramirent Finland Oy
The Board of Directors of Ramirent Plc decided to transfer the
business run by itself in Finland, and the shares of its operating
Finnish subsidiaries, to Ramirent Finland Oy on 1 January 2007.
From now on, the Ramirent rental business in Finland is conducted
by Ramirent Finland Oy, a wholly owned subsidiary of Ramirent Plc.
By transferring the business to Ramirent Finland Oy, Ramirent aims
to streamline and clarify the corporate structure. Ramirent Plc
will remain the parent Company of the Ramirent Group and take care
of the Groups centralised functions.
Subscription of Ramirent shares with 2002B option rights
Based on the 2002B option, 16,330 new Ramirent shares were
subscribed during the subscription window that ended on 1
February, 2007. The subscription price was, according to the terms
of the options programme, 5.98 euros per share. The corresponding
EUR 7,021.90 increase in the share capital is expected to be
entered in the Trade Register on 22 February, 2007. After the
increase the share capital is EUR 11,631,532.25 and the number of
shares is 27,050,075. After these subscriptions there are 62,267
Ramirent 2002B option rights outstanding based on which 124,534
Ramirent shares can be subscribed for.
DIVIDEND PROPOSAL
The Board will propose to the Annual General Meeting to double the
dividend to EUR 1.20 per share (0.60) and 24 April, 2007 as the
record date for payment.
FREE ISSUE PROPOSAL
The Board of Directors proposes to the Annual General Meeting a
free issue for the current shareholders so that one (1) old share
entitles to receive additional three(3) shares without any payment
(equal to a split) to improve the liquidity of the shares and to
promote the trading of the shares. The new shares shall not
entitle to the dividend from year 2006 to be decided at the Annual
General Meeting of Shareholders on 19 April 2007.
ANNUAL GENERAL MEETING
The Annual General Meeting will be held at Scandic Continental
Hotel on 19 April, at 16:30 hrs. The invitation to the Annual
General Meeting is planned to be published on 26 February, 2007.
The annual report will be available in week 10.
OUTLOOK
The good market conditions are expected to continue in 2007. The
Company estimates that total construction activities will grow at
the rate of 3% in the Nordic countries next year. This view is
further supported by the backlog of the largest Nordic
construction companies that have reported increased backlogs for
the year 2007. In the Central and Eastern European markets where
Ramirent is present, the Company estimates a further solid growth.
Rental penetration rate is expected to further rise in the Groups
markets for machinery and equipment rental services as
construction companies increasingly opt to rent equipment instead
of investing in their own fleet. Consequently, Ramirent estimates
that the machinery rental markets will grow faster than the
construction markets in 2007.
Ramirent is well positioned to take advantage of the opportunities
available in the markets and will continue its heavy investments
in capacity in 2007 to meet expected strong market demands. The
Company will also continue to search for bolt-on acquisitions and
to further improve internal efficiency to support profitable
growth. For the full-year 2007, Ramirent is expecting to exceed
its financial targets.
SEGMENT INFORMATION, INCOME STATEMENT, BALANCE SHEET, CONDENSED
CASH FLOW STATEMENT, STATEMENT OF CHANGES IN EQUITY, KEY FIGURES,
AND CONTINGENT
LIABILITIES
Ramirent Plc adopted the International Financial Reporting
Standards (IFRS) on 1 January, 2005. The comparative figures for
2005 presented in the Interim Report are in line with the IFRS.
QUARTERLY SEGMENT INFORMATION
(EUR million) 10-12/06 10-12/05 1-12/06 1-12/05
Net sales
Finland 29.4 23.0 102.7 84.8
Sweden 38.1 30.2 130.9 105.1
Norway 33,0 28.5 120.3 100.8
Denmark 14.1 12.5 50.0 42.7
Other European
countries (Ramirent
Europe) 31.8 19.0 96.4 56.4
Sales between
segments -0.2 -0.1 -2.4 -0.8
Net sales, total 146.2 113.0 497.9 389.0
Operating profit
Finland 7.0 3.7 25.7 18.1
% of net sales 23.8% 16.3% 25.0% 21.4%
Sweden, operating
profit excluding
the profit of
divestment of
properties 7.8 3.6 22.5 9.3
% of net sales 20.5% 11.8% 17.2% 8.8%
Sweden, operating 27.9
profit including
the profit of
divestment of
properties
% of net sales 21.3%
Norway 7.5 4.1 27.2 15.7
% of net sales 22.6% 14.3% 22.6% 15.5%
Denmark 2.6 1.6 7.3 4.2
% of net sales 18.3% 12.7% 14.6% 9.8%
Other European
countries (Ramirent
Europe) 9.4 4.8 26.2 11.8
% of net sales 29.7% 25.4% 27.2% 21.0%
Costs not allocated
to segments -1.8 -1.0 -4.0 -3.1
Group operating
profit excluding
the profit of
divestment of
properties 32.5 16.8 104.9 55.9
% of net sales 22.2% 14.8% 21.1% 14.4%
Group operating
profit including
the profit of
divestment of
properties 32.5 16.8 110.3 55.9
% of net sales 22.2% 14.8% 22.2% 14.4%
INCOME STATEMENT
(EUR 1,000) 10-12-/06 10-12/05 1-12/06 1-12/05
Net sales 146,223 112,997 497,858 388,976
Other operating income 659 501 6,907 1,802
TOTAL 146,882 113,498 504,765 390,778
Materials and services -38,165 -29,239 -121,658 -98,658
Employee benefit
expenses -34,625 -33,106 -125,742 -112,025
Depreciation -16,757 -13,662 -61,243 -51,166
Other operating expenses -24,863 -20,720 -85,802 -72,974
OPERATING PROFIT 32,473 16,771 110,320 55,955
Financial income 412 931 4,404 3,990
Financial expenses -2,666 -2,452 -11,781 -11,290
PROFIT BEFORE TAXES 30,219 15,250 102,943 48,655
Income taxes -8,080 -5,377 -23,787 -13,144
NET PROFIT FOR THE
PERIOD 22,139 9,873 79,156 35,511
Sharing of profit:
To the parent Company's
shareholders 22,131 9,905 79,129 35,498
To the Group's minority 8 -32 27 13
Sharing of profit, total 22,139 9,873 79,156 35,511
Earnings per share
(EPS), diluted, EUR 0.82 0.37 2.93 1.34
Earnings per share
(EPS), non-diluted, EUR 0.82 0.38 2.95 1.35
BALANCE SHEET
ASSETS
(EUR 1,000) 31.12.2006 31.12.2005
NON-CURRENT ASSETS
Tangible assets 388,648 298,529
Goodwill 76,112 73,211
Other intangible assets 1,527 1,389
Available-for-sale
financial assets 595 414
Deferred tax assets 1,200 1,421
NON-CURRENT ASSETS, TOTAL 468,082 374,964
CURRENT ASSETS
Inventories 17,767 15,280
Trade and other
receivables 97,304 72,726
Cash and cash equivalents 1,112 1,320
CURRENT ASSETS, TOTAL 116,183 89,326
TOTAL ASSETS 584,265 464,289
EQUITY AND LIABILITIES
(EUR 1,000) 31.12.2006 31.12.2005
EQUITY
Share capital 11,625 11,441
Share premium account 126,011 122,788
Retained earnings 127,205 62,683
PARENT COMPANY
SHAREHOLDERS EQUITY 264,841 196,912
Minority interests 83 82
EQUITY, TOTAL 264,924 196,994
NON-CURRENT LIABILITIES
Deferred tax liabilities 33,164 21,475
Pension obligations 8,090 7,530
Provisions 1,186
Interest-bearing
liabilities 169,769 146,121
NON-CURRENT LIABILITIES,
TOTAL 212,209 175,126
CURRENT LIABILITIES
Trade payables and other
liabilities 88,949 70,817
Provisions 581 0
Interest-bearing
liabilities 17,602 21,352
CURRENT LIABILITIES,
TOTAL 107,132 92,169
LIABILITIES, TOTAL 319,342 267,295
TOTAL EQUITY AND
LIABILITIES 584,265 464,289
CONDENSED CASH FLOW STATEMENT
(EUR million) 1-12/06 1-12/05
Cash flow from operating
activities 133.9 87.2
Cash flow from investing
activities -140.7 -92.2
Cash flow from financing
activities
Proceeds from share
subscriptions 2.5 1.6
Borrowings/ repayments
of
long-term debt 20.2 3.5
Dividends paid -16.1 -5.9
Net cash generated from
financing activities 6.6 -0.8
Net change in cash and
cash equivalents -0.2 -5.8
Cash and cash equivalents
at the beginning of the
period 1.3 7.1
Cash and cash equivalents
at the end of the period 1.1 1.3
Net change in cash and
cash equivalents -0.2 -5.8
CHANGES IN EQUITY
Entries
on non-
current
Cumul. assets
Share Cum. held
Share prem. transl. Reval. Ret. for Min. Total
cap. fund diff. fund earn. sale int. equity
Equity on
31
December
2004 11,134 118,703 3,467 - 32,753 - 183 166,240
Adoption
of IAS 32
and 39 - - - -1,774 -803 - - -2,577
Income
taxes on
adoption
of IAS 32 - - - 461 209 - - 670
and 39
Adjusted
equity on
1 January
2005 11,134 118,703 3,467 -1,313 32,159 - 183 164,333
Share-
based
payment - - - - 183 - - 183
Change of
defined
benefit
pension
obligation - - - - -4,052 - - -4,052
Transl.
differ. - - 769 - - - 15 784
Fair value
adjustment
of
interest
rate SWAPs - - - 991 - - -129 862
Income tax
on
directly
to equity
entries - - - -258 1,134 - - 876
Entries
directly
to equity
(net) - 769 733 -2,735 - -114 -1,347
Net profit
for the
financial
year - - - - 35,498 - 13 35,511
Net of
income and
expenses
for the
period - - 769 733 32,763 - -101 34,164
Dividend
distrib. - - - - -5,895 - - -5,895
Directed
share
issue 73 2,734 - - - - - 2,807
Increase
of counter-
book value
of shares 131 -131 - - - - - -
Used share
options 103 1,482 - - - - - 1,585
Equity on
31
December
2005 11,441 122,788 4,236 -580 59,027 - 82 196,994
Transl.
diff. - - 662 - - - -7 655
Decrease
of
minority
interest - - - - - - -19 -19
Fair value
adjustment
of
interest
rate SWAPs - - - 925 - - - 925
Fair value
adjustment
of
available-
for-sale
investm. - - - - - 190 - 190
Income tax
on
directly
to equity
entries - - - -240 - -50 - -290
Entries
directly
to equity
(net) - - 662 685 - 140 -26 1,461
Net profit
for the
financial
year - - - - 79,129 - 27 79,156
Net of
income and
expenses
for the
period - - 662 685 79,129 140 1 80,617
Dividend
distrib. - - - - -16,094 - - -16,094
Directed
share
issue 13 896 - - - - - 909
Used share
options 171 2,327 - - - - - 2,498
Equity on
31
December
2006 11,441 122,788 4,236 -580 59,027 - 82 196,994
KEY FIGURES
1-12/06 1-12/05
Interest-bearing debt,
(EUR million) 187.4 167.5
Net debt, (EUR million) 186.3 166.2
Invested capital (EUR
million), end of period 452.3 364.5
Return on invested
capital (ROI), % 1) 28.1% 17.2%
Gearing, % 70.3% 84.3%
Equity ratio, % 45.4% 42.5%
Personnel, average 2,846 2,614
Personnel, end of period 3,016 2,678
Gross investments in non-
current assets (EUR
million) 176.5 112.6
Gross investments, % of
net sales 35.4% 29.0%
1) The figures are calculated on a rolling twelve month basis.
KEY FIGURES PER SHARE
1-12/06 1-12/05
Earnings per share (EPS)
weighted average,
diluted, EUR 2.93 1.34
Earnings per share (EPS)
weighted average, non-
diluted, EUR 2.95 1.35
Equity per share, end of
period, diluted, EUR 9.74 7.35
Equity per share, end of
period, non-diluted, EUR 9.80 7.40
Number of shares
(weighted average),
diluted 27,004,406 26,524,740
Number of shares
(weighted average), non-
diluted 26,857,071 26,337,739
Number of shares (end of
period), diluted 27,181,080 26,794,810
Number of shares (end of
period), non-diluted 27,033,745 26,607,809
The key figures per share are calculated based on the number of
shares after the split on 18 April, 2005.
CONTINGENT LIABILITIES
(EUR million) 31.12.2006 31.12.2005
Real estate mortgages 0.9 0.8
Interest-bearing debt for
which the above
collateral is given 0.3 0.3
Floating charges - 2.7
Interest-bearing debt for
which the above
collateral is given - 2.2
Real estate mortgages - -
Subsidiary shares
(carrying value) - -
Floating charges 76.6 76.4
Other pledged assets 3.1 3.1
Interest-bearing debt for
which the above
collateral is given 183.8 157.5
Suretyships 2.8 2.2
Non-cancellable minimum
future operating lease
payments 89.3 53.9
Non-cancellable minimum
future finance lease
payments 6.1 15.4
Finance lease debt in the
balance sheet -5.8 -14.1
Non-cancellable minimum
future lease payments off-
balance sheet 89.6 55.2
Obligations arising from
derivative instruments
Nominal value of
underlying object 49.9 65.1
Fair value of the
derivative instruments 0.1 -0.8
CONFERENCE FOR ANALYSTS AND THE PRESS
A conference for investment analysts and the press will be
arranged on Thursday 15 February, 2007 at 10.00 a.m. in the Dining
Room of Restaurant Pörssi in Helsinki, Fabianinkatu 14.
RAMIRENTS FINANCIAL REPORTING 2007
Ramirents Annual Report for 2006 will be published in week 10.
Ramirent Plcs Annual General Meeting will be held at Scandic
Continental Hotel on Thursday, 19 April, 2007, at 16:30.
In 2007, the interim reports will be published as follows:
- January-March: on Friday, 11 May, 2007
- January-June: on Wednesday, 15 August, 2007
- January-September: on Wednesday 7 November, 2007
This financial information in this stock exchange release has been
audited.
Helsinki, 15 February, 2007
RAMIRENT PLC
Board of Directors
FURTHER INFORMATION:
CEO Kari Kallio, phone +358 40 716 1832, or email
kari.kallio@ramirent.com
CFO Heli Iisakka, phone +358 40 544 6833, or email
heli.iisakka@ramirent.com
DISTRIBUTION:
Helsinki Stock Exchange
Main news media
www.ramirent.com
Ramirent is the leading machinery rental company in the Nordic
countries, and in Central and Eastern Europe. The Group is
headquartered in Helsinki and has 288 permanent outlets in twelve
countries. Ramirent employs over 3,000 people and in 2006 the
consolidated net sales were 498 million. Ramirent is listed on the
Helsinki Stock Exchange. For further information, please visit
www.ramirent.com.
