RAMIRENT PLC COMPANY ANNOUCEMENT 27 NOVEMBER 2012
Vantaa, Finland, 2012-11-27 07:00 CET (GLOBE NEWSWIRE) —
Ramirent Plc’s Board of Directors renewed the Group’s long-term financial targets at its meeting on November 26, 2012. The new long-term financial targets are aligned with the strategic priorities and have been set to further emphasize value creation.
Ramirent’s Group strategy is focused on these main priorities:
1. Sustainable profitable growth through strengthening the customer offering, widening the customer portfolio and, growing through outsourcing deals and selected acquisitions. Ramirent concentrates on the customers through a strong local customer orientation, tailored offerings with high focus on environment and sustainability, safety, health and quality as well as excellence in key account management;
2. Operational excellence through developing a one-company structure, “the Ramirent platform”; and
3. Reducing the risk level through a balanced business portfolio and risk management practices.
The aim of the Ramirent Group’s strategy is to generate healthy returns to the shareholders under financial stability. The Board has renewed the long-term financial targets as follows:
1. Profit generation: Return on equity, ROE, of 18 per cent over a business cycle
2. Leverage and risk: Net debt to EBITDA below 1.6x at the end of each fiscal year
3. Dividend: Dividend payout ratio of at least 40% of net profit
Ramirent’s previous long-term financial targets were EPS over 15% p.a. over a business cycle, return of investments, ROI, over 18% p.a. over a business cycle, gearing of maximum 120% at the end of each fiscal year and a dividend payout ratio of at least 40% of the net profit. The new target for profit generation ROE captures shareholder value creation and the target level is comparable to Ramirent’s previously used target of return on investment, ROI, of 18 per cent. The Net debt to EBITDA target level is comparable to the previously used gearing target of maximum 120% at the end of each fiscal year. The dividend target remains unchanged enabling a healthy return for Ramirent’s shareholders as well as providing Ramirent with the potential to invest in its core business and thus to ensure that future growth can be created while maintaining financial stability.
Capital Markets Day
Ramirent organises today, Tuesday 27 November 2012, a Capital Markets Day for investors and analysts at the Presto building at Äyritie 12 A, 01510 Vantaa, Finland. The event will focus on Ramirent Group’s strategic priorities, new long-term financial targets and an overview of segment activities. The event will feature presentations by management and a visit to the company’s customer centre at Suutarila in Helsinki. Registration to the event begins at 8.00 a.m. Finnish time (EEST).
More information is available on Ramirent’s website at www.ramirent.com/investors.
Presentation materials
All presentations held during the Capital Market Day will be available in English on 27 November 2012 at approximately 8.00 a.m. Finnish time at www.ramirent.com/investors.
RAMIRENT PLC
Magnus Rosén
President and CEO
FURTHER INFORMATION:
Franciska Janzon, Director, Corporate Communications and IR, phone +358 20 750 2859, or email franciska.janzon@ramirent.com
DISTRIBUTION:
NASDAQ OMX Helsinki
Main news media
www.ramirent.com
Ramirent is a leading equipment rental group delivering Dynamic Rental Solutions™ that simplify business. We serve a broad range of customers, including construction and process industries, shipyards, the public sector and households. In 2011, the Group’s net sales totalled EUR 650 million. The Group has 3,100 employees at 375 rental outlets in 13 countries in the Nordic countries and in Central and Eastern Europe. Ramirent is listed on the NASDAQ OMX Helsinki Ltd.