Ramirent Plc INTERIM REPORT November 8, 2017 at 9:00 EET
JULY-SEPTEMBER 2017 IN BRIEF
· Net sales EUR 184.7 (169.2) million, up by 9.1% or 9.2% at comparable exchange rates
· Comparable EBITA improved to EUR 34.1 (22.21) million or 18.4% (13.1%1) of net sales
· Gross capital expenditure EUR 41.4 (43.3) million
· Cash flow after investments EUR 9.5 (-1.3) million
JANUARY-SEPTEMBER 2017 IN BRIEF
· Net sales EUR 523.4 (484.7) million, up by 8.0% or 8.4% at comparable exchange rates
· Comparable EBITA improved to EUR 72.6 (47.02) million or 13.9% (9.7%2) of net sales
· Comparable EPS improved to EUR 0.42 (0.242)
· Gross capital expenditure EUR 135.5 (143.8) million
· Cash flow after investments EUR -1.4 (-31.8) million
Ramirent’s guidance for 2017 unchanged
In 2017, Ramirent’s comparable EBITA is expected to increase from the level in 2016.
| KEY FIGURES (MEUR and %) | 7-9/17 | 7-9/16 | CHANGE | 1-9/17 | 1-9/16 | CHANGE | 1-12/16 |
| Net sales | 184.7 | 169.2 | 9.1% | 523.4 | 484.7 | 8.0% | 665.2 |
| EBITDA | 61.6 | 47.1 | 30.8% | 152.4 | 121.2 | 25.7% | 169.0 |
| % of net sales | 33.3% | 27.8% | 29.1% | 25.0% | 25.4% | ||
| Comparable EBITA | 34.1 | 22.21 | 53.3% | 72.6 | 47.02 | 54.5% | 68.1 |
| % of net sales | 18.4% | 13.1% | 13.9% | 9.7% | 10.2% | ||
| EBITA | 34.1 | 14.2 | 139.7% | 72.6 | 38.0 | 90.8% | 59.2 |
| % of net sales | 18.4% | 8.4% | 13.9% | 7.9% | 8.9% | ||
| Comparable EPS, EUR | 0.23 | 0.133 | 76.2% | 0.42 | 0.244 | 77.8% | 0.35 |
| EPS, EUR | 0.23 | -0.02 | n/a | 0.42 | 0.09 | n/a | 0.20 |
| Gross capital expenditure | 41.4 | 43.3 | -4.4% | 135.5 | 143.8 | -5.8% | 190.8 |
| Cash flow after investments | 9.5 | -1.3 | n/a | -1.4 | -31.8 | 95.6% | -20.7 |
| Capital employed, end of period | 668.9 | 643.7 | 3.9% | 645.0 | |||
| Comparable ROCE, % | 12.9% | 8.7% | 9.3% | ||||
| ROCE, % | 13.0% | 5.4% | 6.2% | ||||
| Comparable ROE, % | 19.6% | 12.2% | 12.1% | ||||
| ROE, % | 20.1% | 7.1% | 7.2% | ||||
| Net debt | 369.9 | 357.3 | 3.5% | 345.8 | |||
| Net debt to EBITDA ratio | 1.8x | 2.2x | -14.7% | 2.0x |
1 Excluding items affecting comparability (IACs) of EUR -8.0 million in Q3 2016
2 Excluding IACs of EUR -8.9 million in 1-9/2016
3 Excluding IACs adjusted with tax impact Q3 2016
4 Excluding IACs adjusted with tax impact 1-9/2016
Ramirent’s President and CEO Tapio Kolunsarka:
“In the seasonally strong Q3, our team’s execution was outstanding. Our Q3 comparable EBITA increased by 53.3% to EUR 34.1 (22.2) million – the highest level since 2008. Net sales grew by 9.2% at comparable exchange rates and the EBITA-margin rose to 18.4% (13.1%). Our performance was strong on a broad-basis in the quarter. Sweden, Europe Central, Baltics and Finland delivered very strong EBITA levels. The profitability improvement was also good in Norway. Due to favorable market conditions and our strong performance, our investment agenda remained active driving fleet investments close to last year’s level at EUR 39.1 (42.0) million. Despite this, we also generated a positive cash flow after investments of EUR 9.5 (-1.3) million, which together with improved profitability brought the net debt/EBITDA ratio down to 1.8x (2.2x).
Our nine months net sales grew by 8.4% at comparable exchange rates and comparable EBITA increased by 54.5% to EUR 72.6 (47.0) million or 13.9% (9.7%) of net sales. I am proud to see the quality of execution in our organization improving. We have delivered well and ahead of schedule on many of our profit improvement priorities. From now onwards, we expect the profit improvement from our key priorities to materialize at a more gradual pace as we have been harvesting gains from the program already since Q4 2016.
Ramirent’s situation today and the equipment rental market around us continue to offer us opportunities to create value for our shareholders also going forward. In our upcoming Capital Markets Day on December 1, 2017 we will outline our strategic priorities for 2018-2020.”
Market outlook for 2017
Ramirent’s market outlook is based on the available forecasts disclosed by local construction and industry associations in its operating countries.
In Finland, market conditions in the equipment rental market are expected to stabilize after a period of strong demand growth driven by high construction activity in the first nine months of the year. In Sweden, continued strong momentum in the construction sector is expected to maintain the demand for equipment rental at a high level. The Danish and Norwegian equipment rental markets are estimated to remain fairly stable. In Baltics and in the Europe Central markets, Poland, Czech Republic and Slovakia, the market conditions are expected to be favorable.
Audiocast and conference call for investment analysts and press
A briefing for investment analysts and the press will be arranged on Wednesday, November 8, 2017 at 10:30 a.m. Finnish time (EET) through a live audiocast viewable at www.ramirent.com combined with a conference call. The briefing will be hosted by CEO Tapio Kolunsarka and CFO Pierre Brorsson. The dial-in numbers are: +358981710495 (FI), +46856642702 (SE), +442031940552 (UK), , +18557161597 (US). A recording of the audiocast and teleconference will be available at www.ramirent.com later the same day.
Financial calendar 2017
Ramirent observes a silent period during 30 days prior to the publication of annual and interim financial results.
2017
Capital Markets Day in Helsinki December 1
2018
Financial Statements 2017 February 8
Annual General Meeting March 15
Interim report January-March May 9
Half Year Financial Report August 8
Interim report January-September November 7
For further information
Pierre Brorsson, EVP and Chief Financial Officer (CFO)
tel. +46 8 624 9541,
Franciska Janzon, SVP, Marketing, Communications and IR
tel. +358 20 750 2859,
RAMIRENT is a leading rental equipment group combining the best equipment, services and know-how into rental solutions that simplify customer’s business. Ramirent serves a broad range of customer sectors including construction, industry, services, the public sector and households. In 2016, Ramirent Group sales totaled EUR 665 million. The Group has 2,771 employees in 298 customer centers in 10 countries in Europe. Ramirent is listed on the NASDAQ Helsinki (RMR1V). Ramirent – More than machines®.
Distribution
NASDAQ OMX Helsinki, main news media,
Webcasts:
Ramirent Q3 2017 Audiocast Nov 8 at 10:30 EET.