Ramirent Plc Interim Report November 7 2018 at 9:00 EET

July-September 2018 in brief
– Net sales EUR 189.1 (184.7) million, up by 2.4% or 6.0% at comparable exchange rates
– Comparable EBIT EUR 37.1 (32.0) million or 19.6% (17.3%) of net sales
– EBIT EUR 6.6 (32.0) million or 3.5% (17.3%) of net sales
– Comparable EPS EUR 0.27 (0.23)
– EPS EUR 0.01 (0.23)
– Divestment related expenses of EUR 30.5 million were recognized in the third quarter.

January-September 2018 in brief
– Net sales EUR 551.7 (523.4) million, up by 5.4% or 8.6% at comparable exchange rates
– Comparable EBIT EUR 85.5 (66.4) million or 15.5% (12.7%) of net sales
– EBIT EUR 55.0 (66.4) million or 10.0% (12.7%) of net sales
– Comparable EPS EUR 0.59 (0.42)
– EPS EUR 0.33 (0.42)
– Comparable ROCE 16.5% (13.1%)
– ROCE 11.8% (13.3%)
– Gross capital expenditure EUR 153.4 (135.5) million
– Cash flow after investments EUR -11.6 (-2.0) million

Ramirent’s guidance for 2018 unchanged
In 2018, Ramirent’s comparable EBIT is expected to increase from the level in 2017.

Key figures (MEUR) 7-9/18 7-9/17 Change 1-9/18 1-9/17 Change 1-12/17
Net sales 189.1 184.7 2.4% 551.7 523.4 5.4% 723.7
EBITDA 65.1 61.6 5.8% 168.6 152.4 10.6% 205.5
% of net sales 34.4% 33.3% 30.6% 29.1% 28.4%
Comparable EBIT 37.11 32.0 15.9% 85.51 66.4 28.8% 90.63
% of net sales 19.6% 17.3% 15.5% 12.7% 12.5%
EBIT 6.6 32.0 -79.5% 55.0 66.4 -17.1% 89.3
% of net sales 3.5% 17.3% 10.0% 12.7% 12.3%
Comparable EPS, EUR 0.272 0.23 18.5% 0.592 0.42 39.7% 0.594
EPS, EUR 0.01 0.23 -97.3% 0.33 0.42 -22.5% 0.59
Gross capital expenditure 42.7 41.4 3.2% 153.4 135.5 13.3% 166.4
Cash flow after investments 11.5 9.5 20.9% -11.6 -2.0 n/a 51.6
Capital employed 676.7 668.9 1.2% 654.4
Comparable ROCE, %5 16.5% 13.1% 13.9%
ROCE, %5 11.8% 13.3% 13.8%
Comparable ROE, %5 28.0% 20.1% 22.0%
ROE, %5 18.4% 20.5% 22.0%
Net debt 379.2 369.9 2.5% 337.9
Net debt to EBITDA ratio 1.7x 1.8x -7.4% 1.6x

1 Excluding IACs of EUR -30.5 million in 7-9/2018 and 1-9/2018
2 Excluding IACs of EUR -30.5 million adjusted with tax impact of EUR 2.1 million in 7-9/2018 and 1-9/2018
3 Excluding IACs of EUR -1.3 million in 1-12/2017
4 Excluding IACs of EUR -1.3 million adjusted with tax impact of EUR 0.6 million in 1-12/2017
5 Capital component of key figure is calculated as the average of the 5 previous quarter end values

Ramirent’s President and CEO Tapio Kolunsarka:
“I am very satisfied with our third quarter comparable results, where both our top line and especially bottom line performance surpassed our own expectations and we managed to clearly beat our previous year’s tough comparison figures. At comparable exchange rates, our net sales grew by 6.0%, and our rental sales growth was particularly strong. Our comparable EBIT margin was 19.6% and comparable ROCE 16.5%, being above our year 2020 financial target of 16%. Strong customer demand in all of our markets continued in the quarter and good sales mix development and improved operational efficiency contributed to the strong margins. I am also delighted to see that our organization continues its successful efforts to improve our internal performance and is identifying further opportunities to drive productivity and margin improvements.

During the third quarter, we signed the agreement to sell our Temporary Space business. This transaction enables us to solely focus on our core business of equipment rental and related services and re-invest capital to areas where we see higher returns. The transaction was closed on November 1, 2018.

All of our operating segments improved their performance – already a third quarter in a row. We posted strong performance improvement in Sweden, Norway, Denmark and Eastern Europe, all clearly improving both their comparable EBIT figures as well as their margins. In Sweden, we saw good growth across all of our regions and we continued to win several new customer accounts. In Norway and in Denmark, good market activity continued and our internal performance efforts are becoming clearly visible. It is worth highlighting that approximately half of our comparable EBIT improvement in the quarter came from Norway and Denmark. In Eastern Europe, performance was solid across the countries. In Finland, our performance improved despite the tightened competitive environment and we were pleased with the growth rate achieved in our rental sales.

All in all, I am proud of our organization’s ability to execute and continuously find avenues to further improve the performance of our core business. During the quarter, we also announced changes in our Executive Management Team to increase our efforts to drive longer-term business development in Ramirent. Despite the cyclical concerns around Nordic construction markets, we remain optimistic about our possibilities to further drive internal improvements in our core business and to develop our business in the longer-term perspective.”

Market outlook for 2018
Ramirent’s market outlook is based on the available forecasts disclosed by local construction and industry associations in its operating countries. The demand outlook for 2018 looks favorable for equipment rental across Ramirent’s diverse customer base and geographies. In Sweden, continued strong momentum in the construction sector is expected to maintain the demand for equipment rental in 2018, although the medium-term outlook is more uncertain and the risk level is elevated. In Finland, market conditions in the equipment rental market are expected to stay favorable. In the Baltic countries, Poland, Czech Republic and Slovakia, the market conditions for equipment rental are also expected to remain favorable. The Norwegian and Danish equipment rental markets are estimated to be fairly active.

Audiocast and conference call for investment analysts and press
A briefing for investment analysts and the press will be arranged on Wednesday, November 7, 2018 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 interim CFO Jonas Söderkvist. The dial-in numbers are FI: +358 800 523 163, SE: +46 856 642 651, UK: +44 333 300 0804, US: +1 6319131422. Participant code for conference call is 89510574# A recording of the audiocast and teleconference will be available at www.ramirent.com later the same day.

Financial calendar 2019
Ramirent observes a silent period during 30 days prior to the publication of annual, half year and interim financial results.

Financial statements bulletin 2018 February 8, 2019 at 9:00 a.m. EET
Annual General Meeting March 14, 2019
Interim report January-March 2019 April 30, 2019 at 9:00 a.m. EET
Half Year Financial Report 2019 July 31, 2019 at 9:00 a.m. EET
Interim report January-September 2019 October 30, 2019 at 9:00 a.m. EET

The financial information in this stock exchange release has not been audited

For further information
Jonas Söderkvist, EVP and interim CFO, Ramirent Plc,
tel: +46 (0)8 624 9502, jonas.soderkvist@ramirent.com

RAMIRENT is a leading service company offering equipment rental for construction and other industries. Our mission is to help our customers gear up on safety and efficiency by delivering great equipment and smooth service with a smile. We have 2,900 co-workers at 300 customer centers across 10 countries in northern and eastern Europe. In 2017, Ramirent Group sales reached a total of EUR 724 million. Ramirent is listed on NASDAQ Helsinki. Ramirent – Gear Up. Equipment rental at your service

Distribution: NASDAQ OMX Helsinki, main news media,

Ramirent_Interim report Q3 2018_ENG