RAMIRENT PLC FINANCIAL BULLETIN 16 FEBRUARY 2011 AT 9:00 a.m.
RAMIRENT’S FINANCIAL STATEMENTS REVIEW, JANUARY 1 – DECEMBER 31, 2010: ACTIVITY LEVEL CONTINUES TO IMPROVE
Note! Figures in brackets, unless otherwise indicated, refer to the corresponding period a year earlier.
JANUARY – DECEMBER 2010 HIGHLIGHTS
– Ramirent net sales EUR 531.3 (502.5) million, up 5.7% (down 0.2% at comparable exchange rates)
– EBITDA EUR 127.4 (129.9) million or 24.0% (25.8%) of net sales
– EBIT EUR 29.7 (28.8) million or 5.6% (5.7%) of net sales
– Net result EUR 14.6 (4.7) million and EPS EUR 0.13 (0.04)
– Gross capital expenditure EUR 62.0 (17.5) million
– Cash flow after investments EUR 48.0 (87.6) million
– Net debt EUR 176.6 (207.2) million and gearing 55.6% (67.8%)
OCTOBER – DECEMBER 2010 HIGHLIGHTS
– Ramirent net sales EUR 150.1 (126.2) million, up 19.0% (up 13.5% at comparable exchange rates)
– EBITDA EUR 36.9 (26.2) million or 24.6% (20.7%) of net sales
– EBIT EUR 11.3 (-3.6) million or 7.5% (-2.9%) of net sales
– Cash flow after investments EUR 24.2 (19.5) million
– The Board proposes a dividend of EUR 0.25 per share for the year 2010
RAMIRENT 2011 OUTLOOK
As a result of increased construction activity and improving price levels, net sales are expected to increase in 2011, and the result before taxes is expected to improve compared to 2010.
| (EUR million) | 10-12/10 | 10-12/09 | Change | 1-12/10 | 1-12/09 | Change |
| Net sales | 150.1 | 126.2 | 19.0% | 531.3 | 502.5 | 5.7% |
| EBITDA | 36.9 | 26.2 | 40.9% | 127.4 | 129.9 | -1.9% |
| % of net sales | 24.6% | 20.7% | 24.0% | 25.8% | ||
| EBIT | 11.3 | -3.6 | n/a | 29.7 | 28.8 | 3.4% |
| % of net sales | 7.5% | -2.9% | 5.6% | 5.7% | ||
| Return on invested capital (ROI), % 1) | 8.6% | 8.5% | ||||
| Invested capital (EUR million) at the end of the period | 495.6 | 514.6 | -3.7% | |||
| Net debt | 176.6 | 207.2 | -14.8% | |||
| Gearing, % | 55.6% | 67.8% | ||||
| Equity ratio, % | 48.0% | 46.6% | ||||
| Personnel at end of period | 3,048 | 3,021 | 0.9% | |||
| Gross capital expenditure | 18.1 | 7.5 | 141.3% | 62.0 | 17.5 | 254.3% |
| Gross capital expenditure,% of net sales | 12.1% | 5.9% | 11.7% | 3.5% | ||
| Cash flow after investments | 24.2 | 19.5 | 23.8% | 48.0 | 87.6 | -45.3% |
| Earnings per share (EPS), (diluted), EUR | 0.07 | -0.09 | 173.0% | 0.13 | 0.04 | 213.0% |
| Dividend per share, EUR | 0.25* | 0.15 |
1) rolling twelve months
*Board’s proposal for the Annual General Meeting
MAGNUS ROSÉN, RAMIRENT CEO:
“Fourth-quarter activity remained strong through increased construction activity in most of Ramirent’s markets. Sales increased strongly in the fourth quarter compared to last year but profit level is unsatisfactory. Rental rates are improving, but pricing continues to weigh on gross margin. In addition, costs are increasing, as the Company is preparing to meet increased market demand.
Our focus in 2011 will be on further development in line with our strategy and on profitable growth. We are looking for growth primarily in our existing market areas, which offer additional potential. We are also determined to further strengthen synergies within the Company and development of our personnel, while maintaining the entrepreneurial mindset that is characteristic of Ramirent. We are continuing to develop our operational excellence through the common Ramirent platform to strengthen the synergies within our Group and our capabilities for controlled expansion. We continue to monitor and assess acquisition cases in the market and continue to see interest from customers to discuss fleet outsourcing arrangements. In addition, healthier market demand will be met by increased capital expenditure to support organic expansion in selected product groups and customer segments. Both the public and the private sector offer further potential for Ramirent. With a solid balance sheet, strong product offering and an extensive outlet network, we believe that we are in a good position to capture these opportunities.
The rental industry is experiencing positive growth in most of our operating countries, and we expect the trend to continue and strengthen in 2011. We anticipate higher activity levels in infrastructure, residential construction and renovation construction in most of our countries. Increased construction activity, coupled with improving price levels, is expected to contribute to an improved result before taxes in 2011 for Ramirent.”
RAMIRENT JANUARY – DECEMBER 2010
MARKET REVIEW
Market activity continued to improve within construction and in various industrial sectors towards year-end. Geographically, demand for rental equipment increased in the second half of the year in all Ramirent countries because of increased market activity.
NET SALES
Ramirent Group 2010 net sales increased 5.7% to EUR 531.3 (502.5) million due to the recovery in the construction market activity that started after mid-year. At comparable exchange rates, the Group’s net sales decreased 0.2% for the full year. Net sales increased in Finland and Sweden, but decreased in the other segments in comparable exchange rates compared to the previous year.
Fourth-quarter net sales increased 19.0% to EUR 150.1 (126.2) million compared to the corresponding period in the previous year. At comparable exchange rates, the Group’s net sales increased 13.5%. Net sales increased in all segments compared to the corresponding period in the previous year.
Net sales development by segment was as follows:
| Net sales | ||||||
| (EUR million) | 10-12/10 | 10-12/09 | Change | 1-12/10 | 1-12/09 | Change |
| Finland | 35.2 | 30.6 | 15.3% | 136.9 | 134.3 | 1.9% |
| Sweden | 44.9 | 32.4 | 38.5% | 145.2 | 127.9 | 13.6% |
| Norway | 31.1 | 28.6 | 8.7% | 114.4 | 109.2 | 4.8% |
| Denmark | 9.5 | 9.5 | 0.4% | 35.6 | 42.9 | -17.0% |
| Europe East | 13.4 | 11.2 | 19.7% | 42.7 | 51.3 | -16.8% |
| Europe Central | 18.9 | 16.4 | 15.3% | 66.6 | 65.0 | 2.4% |
| Elimination of sales between segments | -3.0 | -2.5 | -10.2 | -28.1 | ||
| Net sales, total | 150.1 | 126.2 | 19.0% | 531.3 | 502.5 | 5.7% |
FINANCIAL RESULTS
Operating result before depreciation (EBITDA) for the full year was EUR 127.4 (129.9) million with a margin of 24.0% (25.8%). Profits were burdened by low price and low utilisation levels especially during the first half of the year. Credit losses and net change in the allowance for bad debt totalled EUR -3.3 (-3.8) million. Depreciations amounted to EUR 97.7 (101.1) million.
The Group’s operating result (EBIT) was EUR 29.7 (28.8) million, representing 5.6% (5.7%) of net sales.
Fourth-quarter EBITDA-margin improved to 24.6% (20.7%), and EBIT-margin improved to 7.5% (-2.9%). EBIT and EBIT-margin by segment were as follows:
| EBIT | ||||
| (EUR million) | 10–12/10 | 10–12/09 | 1-12/10 | 1-12/09 |
| Finland | 2.9 | 0.1 | 13.7 | 12.1 |
| % of net sales | 8.1% | 0.2% | 10.0% | 9.0% |
| Sweden | 8.3 | 4.4 | 23.3 | 20.9 |
| % of net sales | 18.5% | 13.4% | 16.1% | 16.4% |
| Norway | 0.1 | 1.0 | 2.3 | 9.1 |
| % of net sales | 0.3% | 3.4% | 2.0% | 8.4% |
| Denmark | -0.7 | -4.4 | -2.2 | -4.3 |
| % of net sales | -7.8% | -46.2% | -6.2% | -10.1% |
| Europe East | 1.1 | -2.1 | -3.5 | -10.6 |
| % of net sales | 8.5% | -18.5% | -8.3% | -20.7% |
| Europe Central | 1.0 | -1.0 | 0.8 | 2.8 |
| % of net sales | 5.1% | -6.2% | 1.2% | 4.3% |
| Costs not allocated to segments | -1.4 | -1.6 | -4.7 | -1.3 |
| Group EBIT | 11.3 | -3.6 | 29.7 | 28.8 |
| % of net sales | 7.5% | -2.9% | 5.6% | 5.7% |
Net financial items were EUR -8.9 (-16.1) million, including EUR 3.2 (-2.7) million positive net effect of exchange rate changes. The Group’s result before taxes was EUR 20.9 (12.7) million. Income taxes amounted to EUR -6.2 (-8.0) million.
Net result for the review period was EUR 14.6 (4.7) million. Earnings per share were EUR 0.13 (0.04). The return on invested capital was 8.6% (8.5%), and the corresponding return on equity was 4.7% (1.6%). The equity per share was EUR 2.93 (2.81).
CAPITAL EXPENDITURE, CASH FLOW AND FINANCIAL POSITION
The Group’s gross capital expenditure on non-current assets totalled EUR 62.0 (17.5) million, of which EUR 52.7 (15.0) million was attributable to investments in machinery and equipment, and the rest was related mainly to goodwill and other intangible assets from acquisitions.
Disposals of tangible non-current assets at sales value were EUR 16.9 (20.9) million, of which EUR 16.4 (20.1) million was attributable to machinery and equipment.
The Group’s twelve-month cash flow from operating activities amounted to EUR 104.2 (107.7) million, whereof change in net working capital amounted to EUR -0.4 (6.2) million. Cash flow from investing activities amounted to EUR -56.2 (-20.0) million due to increased investments in rental machinery and equipment as well as acquisitions. Cash flow from operating and investing activities totalled EUR 48.0 (87.6) million. In April, following the Annual General Meeting, EUR 16.3 million was paid in dividends for 2009. In the period August-October, own shares were repurchased to the amount of EUR 2.9 million.
Interest-bearing liabilities at the end of the fourth quarter amounted to EUR 177.9 (209.0) million. Net debt amounted to EUR 176.6 (207.2) million, and gearing was at 55.6% (67.8%).
On 31 December 2010, Ramirent had unused committed back-up loan facilities available of EUR 194.7 million.
Total assets amounted to EUR 661.3 (656.0) million at the end of the review period. Group equity totalled EUR 317.6 (305.6) million. The Group’s equity ratio was 48.0% (46.6%).
| PERSONNEL AND OUTLET NETWORK | ||||
| Employees | Employees | Outlets | Outlets | |
| 31 December 2010 | 31 December 2009 | 31 December 2010 | 31 December 2009 | |
| Finland | 603 | 602 | 84 | 81 |
| Sweden | 546 | 500 | 73 | 59 |
| Norway | 503 | 547 | 42 | 39 |
| Denmark | 160 | 151 | 20 | 21 |
| Europe East | 392 | 357 | 48 | 44 |
| Europe Central | 824 | 849 | 111 | 100 |
| Group administration | 20 | 15 | — | — |
| Total | 3,048 | 3,021 | 378 | 344 |
BUSINESS EXPANSIONS AND ACQUISITIONS
Ramirent AB, the Swedish wholly-owned subsidiary of Ramirent Plc, acquired on 11 March 2010 the rental equipment company Hyrmaskiner i Gävle AB, including Hyrmaskiner i Mora AB and Hyrmaskiner i Falun AB, operating in Gävleborg and Dalarna under the brand Tidermans Hyrmaskiner. Hyrmaskiner i Gävle AB rents out machinery and equipment for the construction industry in Gävleborg and Dalarna. The company has 40 employees. Hyrmaskiner i Gävle AB has been consolidated into segment Sweden figures as of 1 March 2010.
Ramirent’s Norwegian subsidiary, Ramirent AS, acquired the entire machinery operations of Norwegian Selvaagbygg on 16 March 2010. At the same time Selvaagbygg signed a three-year rental agreement with Ramirent AS.
Ramirent’s Finnish subsidiary, Ramirent Finland Oy, acquired on 18 May 2010 the access platform operations of Havator group and signed a five-year rental and cooperation agreement with Havator in Finland, Sweden and Norway. The acquisition does not include truck-mounted access equipment. Acquired operations have been consolidated into segment Finland figures as of 1 May 2010.
Ramirent acquired the machinery and equipment rental business of the Czech construction machinery company NTC Stavební Tecnika spol. s r.o. (“NTC”) on 29 June 2010. The NTC operations have been consolidated into segment Europe Central figures as of 1 July 2010. The equipment rental operations consist of seven employees who will continue their employment as old employees at Ramirent. The acquisition expands Ramirent’s existing network in Czech Republic with three new outlets in Hradec Králove, Pardubice and Ceska Skalice.
Ramirent’s Danish subsidiary, Ramirent AS, acquired the light equipment and hoists operations of a Danish construction company, E. Pihl & Søn A.S. and signed a five-year rental agreement with E. Pihl & Søn A.S. 14 December 2010. The acquisition will be executed and consolidated into Ramirent’s figures as from 1 January 2011.
DEVELOPMENT BY OPERATING SEGMENT
Finland
Ramirent’s net sales in Finland increased by 1.9% to EUR 136.9 (134.3) million in 2010. Adjusted for internal sales of equipment net sales increased by 7.4%. EBIT increased to EUR 13.7 (12.1) million, representing a margin of 10.0% (9.0%). According to the Confederation of Finnish Construction Industries RT, the Finnish construction market increased by 2% in 2010. VTT Technical Research Centre of Finland further stated that the Finnish machine and equipment rental market grew by 5% in 2010.
In the fourth quarter, sales increased by 15.3% to EUR 35.2 (30.6) million and EBIT increased to EUR 2.9 (0.1) million, representing a margin of 8.1% (0.2%). The major growth driver was the significant increase in residential construction as well as in renovation construction. A negative growth factor has been the downturn in the activity of the Finnish shipyard industry which also burdened the EBIT development in the fourth quarter.
Sweden
Ramirent’s net sales in Sweden increased by 13.6% to EUR 145.2 (127.9) million in 2010 or by 2.1% at comparable exchange rates. EBIT increased to EUR 23.3 (20.9) million, representing a margin of 16.1% (16.4%). According to the Swedish Construction Federation (Sveriges Byggindustrier), the construction industry in Sweden grew by approximately 3% in 2010.
In the fourth quarter, sales increased by 38.5% to EUR 44.9 (32.4) million and EBIT increased to EUR 8.3 (4.4) million, representing a margin of 18.5% (13.4%). Especially civil engineering, public sector demand and housing boosted Ramirent’s growth during the quarter. The demand for Ramirent’s modules was high and the market for light machinery experienced strong growth as well. The growth was driven by Stockholm and the surrounding areas, but central and southern regions of the country also developed positively.
Norway
Ramirent’s net sales in Norway increased by 4.8% to EUR 114.4 (109.2) million in 2010 but decreased 3.9% at comparable exchange rates. EBIT decreased to EUR 2.3 (9.1) million, representing a margin of 2.0% (8.4%). The construction industry declined overall by approximately 3%.
In the fourth quarter, sales increased by 8.7% to EUR 31.1 (28.6) million and EBIT decreased to EUR 0.1 (1.0) million, representing a margin of 0.3% (3.4%). The growth driver was the construction market that started to recover in Norway towards the end of the year. Profitability was still burdened by low price levels, however prices started to improve towards yearend.
Denmark
Ramirent’s net sales in Denmark decreased due to continued weak market conditions by 17.0% to EUR 35.6 (42.9)million in 2010. EBIT amounted to -2.2 (-4.3) million representing a margin of -6.2% (-10.1%). According to Dansk Byggeri, the Danish construction market declined by approximately 10% during 2010.
In the fourth quarter, sales increased by 0.4% to EUR 9.5 (9.5) million and EBIT increased to EUR -0.7 (-4.4) million, representing a margin of -7.8% (-46.2%). The high level of price competition decreased and market conditions improved slightly towards the end of the year. E. Pihl & Søn A.S. (Pihl), one of Denmark’s leading contractors signed a five-year rental agreement with Ramirent and outsourced its light equipment and hoist operations to Ramirent effective as of 2011. For Ramirent Denmark, the agreement with Pihl corresponds to estimated annual sales of EUR 2 to 3 million.
Europe East (Russia, the Baltic States and Ukraine)
Ramirent’s net sales in Europe East decreased by 16.8% to EUR 42.7 (51.3) million in 2010 or by 20.2% at comparable exchange rates. Adjusted for internal sales of equipment, net sales increased by 9.2%. EBIT amounted to EUR -3.5 million (-10.6), representing a margin of -8.3% (-20.7%). According to Euroconstruct (December 2010), the construction market in Russia was flat, and the Baltic states experienced a decline in construction volume of between 12 and 19%.
In the fourth quarter, sales increased by 19.7% to EUR 13.4 (11.2) million and EBIT increased to EUR 1.1 (-2.1) million, representing a margin of 8.5% (-18.5%). In the fourth quarter, the demand for rental equipment increased in Europe East mainly due to the revival of infrastructural construction. In the Baltic States the return to growth can be explained by increasing energy-related investments, renovation construction as well as growing infrastructure construction.
Europe Central (Poland, Hungary, Czech Republic and Slovakia)
Ramirent’s net sales in Europe Central increased by 2.4% to EUR 66.6 (65.0)million in 2010 or decreased by 4.3% at comparable exchange rates. EBIT amounted to 0.8 million (2.8), representing a margin of 1.2% (4.3%). According to Euroconstruct (December 2010), the construction market in Poland was the only market in Europe Central with positive growth of 4.0%. Both Czech Republic and Slovakia experienced a market drop of approximately 10%, while the market in Hungary declined approximately by 4%.
In the fourth quarter, sales increased by 15.3% to EUR 18.9 (16.4) million and EBIT increased to EUR 1.0 (-1.0) million, representing a margin of 5.1% (-6.2%). The growth drivers were the recovery in construction and industrial activity in Poland and Hungary. Profitability was burdened by lower price levels and business volumes especially in Czech Republic and Slovakia.
APPOINTMENTS IN THE GROUP MANAGEMENT TEAM IN 2010
Dino Leistenschneider (39) M.Sc. (Eng.) was appointed to a new position as Director, Group Sourcing of Ramirent Plc and a member of the Ramirent Group Management Team as of 1 September 2010.
CHANGES IN THE BOARD OF DIRECTORS
Torgny Eriksson 1947-2010
Ramirent Plc deeply regrets the passing away of Ramirent Board member Torgny Eriksson in October 2010. The Board thereafter consists of the following five members: Mr. Peter Hofvenstam (chairman), Mrs. Susanna Renlund (vice-chairman), Mr. Kaj-Gustaf Bergh, Mr. Johan Ek and Mr. Erkki Norvio.
SHARES
Trading in the share
Ramirent Plc’s market capitalization at the end of 2010 was EUR 1,071 (743) million. Trading closed at EUR 9.85 (6.84). The highest quotation for the period was EUR 10.10 (8.23), and the lowest EUR 6.17 (2.35). The average trading price was EUR 7.85 (5.01).
The value of share turnover during the review period was EUR 385.6 (321.8) million, equivalent to 48,832,010 (64,220,362) traded Ramirent shares, i.e., 44.9% (59.1%) of Ramirent’s total number of shares.
Share capital and number of shares
At the end of the review period, Ramirent Plc’s share capital was EUR 25.0 million, and the total number of Ramirent shares was 108,697,328.
Own shares
At the end of 2010, Ramirent Plc held 393,192 shares of the Company.
DECISIONS AT THE AGM 2010
Ramirent Plc’s Annual General Meeting, which was held on 29 March, 2010, adopted the 2009 financial statements and discharged the members of the Board of Directors and the President and CEO from liability
The Annual General Meeting resolved that a dividend of EUR 0.15 per share be paid for fiscal year 2009. Further the Annual General Meeting decided to grant the Board the authority to decide no later than 31 December 2010, on the payment of an additional dividend to the dividend decided in the Annual General Meeting of no more than EUR 0.10 per share. This authorisation was not used.
The Annual General Meeting resolved that the number of members of the Board of Directors be confirmed to be six (6)and re-elected the current Board members Kaj-Gustaf Bergh, Torgny Eriksson, Peter Hofvenstam, Erkki Norvio and Susanna Renlund and elected Johan Ek as new Board member. Board member Torgny Eriksson passed away in October 2010.
The Annual General Meeting resolved that the remunerations of the members of the Board of Directors be unchanged from 2009 levels. KPMG Oy Ab, a firm of Authorised Public Accountants, was re-elected auditor, with CPA Pauli Salminen as principally responsible auditor.
The Annual General Meeting approved the amendment of Section 10 of the Articles of Association and authorised the Board of Directors to decide on the repurchase of a maximum of 10,869,732 Ramirent’s own shares and to decide to issue a maximum of 21,739,465 new shares and to convey a maximum of 10,869,732 Ramirent’s own shares against payment.
STRATEGY AND FINANCIAL TARGETS
The aim of the Ramirent Group’s strategy is to generate a healthy return to shareholders while maintaining financial stability. Ramirent’s strategy 2010 and beyond is focused on three major objectives: sustainable top-line growth through strengthening the customer offering, widening the customer portfolio and, growing through outsourcing deals and selected acquisitions; operational excellence through developing a one-company structure, “the Ramirent platform”; and reducing the risk level through a balanced business portfolio and improved risk management practices.
The Group’s long-term financial targets over a business cycle are: earnings per share growth of at least 15% p.a., a return on invested capital of at least 18% p.a. and a gearing target of less than 120% at the end of each financial year. Ramirent’s policy with respect to the ordinary dividend is to distribute at least 40% of annual earnings per share to shareholders.
BUSINESS RISKS AND RISK MANAGEMENT
Risks are events or circumstances, which, if materialised, can either positively or negatively affect the chances of Ramirent achieving its targets. Risk management in Ramirent is consistent and purports to ensure that Ramirent Group reaches its strategic, including financial, objectives. Ramirent’s risk management focus is on proactive measures, protecting operations, limiting negative impacts and utilising opportunities. An essential part of Ramirent’s risk management is to maintain and develop appropriate insurance coverage of our fleet in co-operation with insurance specialists. Even though the overall risk exposure has increased due to the turmoil in the financial markets and the economic cycle of the markets, risk management measures have been implemented in proportion to the scope of the operations and to practical measures available.
The Board of Directors approves the risk policy principles. Risk assessment is conducted as a part of annual strategy process. Risks are evaluated in relation to achievement of strategic, including financial, targets of Ramirent Group. In the risk assessment the impact and probability of each risk is evaluated and risks are classified as strategic risks and other risks. The strategic risks are risks that may affect reaching strategic objectives. Other risks are risks not affecting reaching the strategic objectives of Ramirent. Indicators to follow are set and measures to be taken if the risks materialize are described in an action plan during assessment of risks. The Group Management Team, together with the segment and country management, is responsible for monitoring risk indicators regularly and implementing risk management measures whenever needed. Risk management plans are implemented at the Group and segment levels.
The strategic risks described below are not the only risks, but they comprise the main risks that Ramirent and its shareholders are exposed to.
Market risks
Changes in the demand of customer industries affect Ramirent’s operations as well as its financial position. Such changes may be related to, among other things, economic cycles, changed strategies in customer companies, product requirements or environmental aspects. The main risks affecting Ramirent’s business operations, its profitability and financial position are those connected with the economic cycles in the main customer segment of the construction industry and the increased competition in the rental sector in operating countries.
Ramirent aims to differentiate from competitors by offering general rental services from single product to managing the entire fleet capacity for a project site, technical support and local presence. In addition, Ramirent operates flexibly and cost-efficiently in an effort to ensure competitiveness. To secure the competitive position, Ramirent has adjusted cost structure and developed the operating models. Downturn in business cycles has impacted the utilisation of equipment and price levels negatively. The conditions in the financial market are still limiting the accessibility to financing for new projects in developing markets, which may negatively affect Ramirent’s customers and thereby also the Ramirent Group. Aggressive competition in the rental sector may lead to continued low price levels and margins, although Ramirent strives to maintain a stable pricing, a wide offering and efficient customer service.
There were no significant changes in the competitor field during the year; however, changes may occur as a result of mergers and acquisitions, and new players entering to Ramirent’s home markets.
The Group follows regularly several market indicators such as construction output, construction companies’ backlog and locally industry-related measures. Contingency plans are developed and are continuously updated based on scenario analysis in all countries, allowing management to act rapidly and proactively to changes in the markets.
Operative risks
Ramirent is improving effectiveness by focusing on issues in its operations that are most critical in terms of competitiveness. Efficient sales management and a comprehensive outlet network are prerequisites for successful sales operations. Consolidating procurements to the most competitive suppliers reduces cost and maintenance. Ramirent has implemented stricter risk management routines. A common fleet structure has been created in order to optimise utilisation and defend price levels.
Ramirent improves quality, processes and safety by applying ISO 9001 quality management or similar processes in the business units.
Many of Ramirent’s operating markets are still very fragmented and may provide opportunities to further strengthen Ramirent market position through selective acquisitions. All businesses to be acquired must meet Ramirent’s strategic and financial criteria. Such acquisitions are subject to risk related to identifying suitable target companies as well as the successful timing and integration of the acquired business into Ramirent’s operations. The growth strategy may also include expansion of activities to new geographical markets. Such expansion is subject to cultural, political, economic, regulatory, and legal risks as well as finding good local key personnel. In business acquisitions Ramirent aims to manage the risks by applying due diligence and acquisition processes.
Ramirent continuously assesses its human resources and organizational structures to ensure organisational efficiency and competence and to avoid an imbalance in the age structure and a high personnel turnover rate. A management training program has been implemented to increase the management competence level, to create common corporate management platform and transfer knowledge between business units.
Ramirent’s operations are dependent on external, internal and embedded information technology services and solutions. Ramirent aims to use reliable information technology solutions and information security management to avoid interruptions, exposure to data loss, compromised confidentiality or usability of information. Ramirent has chosen a technology package for smaller business units to reduce development and maintenance costs.
Overall, Ramirent is still dependent on the construction sector’s economic cycles. Ramirent strives to reduce risk of being overly dependent on any sector by seeking new customer groups outside the construction sector and contracts with longer durations.
Law and regulation related risks
The Group’s operations are subject to laws governing environmental protection and occupational health and safety matters. These laws regulate such issues as waste and flood water, solid and hazardous wastes and materials, and air quality as well as accident prevention, using personal protective equipment, safety training, etc.
Currently there are no claims pending related to the above mentioned matters, but the possibility of remediation and compliance costs in the future cannot be excluded.
Transparency risks
Ramirent applies a decentralised organizational model, which implies a high degree of autonomy for its business units. Business control in such an organization imposes requirements on reporting and supervision, which may be cumbersome for certain parts of the organization and could make it difficult for Group management to implement measures quickly at the business unit level in changing circumstances. Ramirent has developed the implementation of Group instructions, improved reporting quality and credit risk management.
Financial risks
The management of financial risks is defined in the Group’s finance policy. Ramirent is subject to certain financial risks such as foreign currency, interest rate and liquidity and funding risks. The financial risk management in Ramirent strives to secure the sufficient funding for operational needs and to minimise the funding costs and the effects of foreign exchange rate, interest rate and other financial risks in a cost-effective manner.
Fluctuations in currency exchange rates can affect Ramirent’s financial result. The effect of exchange rate fluctuations is visible when translating the net sales and financial results of our subsidiaries outside the euro zone into Euros. Changes in the exchange rates may increase or decrease net sales or results, even though no real change has occurred. Hedging operations are handled centrally through Group Treasury.
Credit risk is defined as the possibility of a customer not fulfilling its commitments towards Ramirent. Ramirent’s business units are responsible for credit risks related to sales activities. The business units assess the credit quality of their customers, by taking into account customer’s financial position, past experience and other relevant factors. When appropriate, advance payments, deposits, letters of credit and third party guarantees are used to mitigate credit risks. The maximum credit risk equals the carrying value of trade receivables. Customer credit risks are diversified as Ramirent’s trade receivables are generated by a large number of customers. During the financial year Ramirent has improved local practices to lower the risk of bad debt and develop receivables management further. Ramirent is closely monitoring credit risks and regularly makes provisions for risk in sales receivables.
Financial counterparty risk is defined as the risk of banks/financial institutions not being able to fulfil their undertakings to the Ramirent Group. These undertakings include all financial transactions where the cancellation of payments by the counterparty may result in a potential loss. The financial counterparty risk is minimised by selecting instruments with a high degree of liquidity and counterparties with high credit ratings. Ramirent co-operates only with counterparties judged to be capable of meeting their undertakings with Ramirent.
CHANGES IN GROUP STRUCTURE
The cross-border merger of Ramirent’s subsidiaries in Latvia and Lithuania to the Estonian subsidiary Ramirent AS was completed in 2010. The subsidiaries operating in Latvia and Lithuania, Ramirent SIA and Ramirent AB, were liquidated, and the operations in Latvia and Lithuania are carried through business branches for Ramirent AS.
A holding company, LLC Ramirent RUS, was established in Russia. The company coordinates the operations of Ramirent’s Russian subsidiaries.
The merger of Swedish subsidiaries Hyrmaskiner i Gävle AB, Hyrmaskiner i Mora AB and Hyrmaskiner i Falun AB was initiated in 2010. The aim of the merger is streamline the operating structure in Sweden.
EVENTS AFTER THE BALANCE SHEET DATE
Changes in the Ramirent Group Management Team
Bjørn Larsen (51), M.Sc. (Business and Mark.), MBA, has been appointed as Senior Vice President of the Ramirent Norway segment and member of the Group Management Team as of 1 February 2011. Larsen succeeds Eivind Bøe, who has held the position since 2005 until 31 January 2011 when he resigned from Ramirent.
Erik Høi(55), B.Sc. (Mechanical Engineer), has been appointed as Senior Vice President of the Ramirent Denmark segment and member of the Group Management Team as of 19 January 2011.
The focus of the composition of the Group Management Team is to be close to the operative business and emphasize the business segments’ role. The composition of the Ramirent Group Management Team as of 1 February 2011 is as follows: Magnus Rosén, President and CEO of Ramirent Group;
Jonas Söderkvist, CFO; Kari Aulasmaa, SVP, Finland and Europe East segments; Peter Dahlsten, SVP, Sweden segment; Tomasz Walawender, SVP, Europe Central segment; Erik Høi, SVP, Denmark segment; Bjørn Larsen, SVP, Norway segment; Franciska Janzon, Director, Corporate Communications; Mikael Kämpe, Director, Group Fleet; and Dino Leistenschneider, Director, Sourcing.
Latest equipment outsourcing and acquisition announcements
On 10 January, 2011 Destia Oy and Ramirent Finland Oy signed a Letter of Intent whereby Destia outsources its modules and some light machinery as well as related operations to Ramirent and signs a five-year rental agreement with Ramirent. The agreement is to be finalised in the first quarter of 2011.
On 1 February, 2011 Ramirent’s Danish subsidiary Ramirent A/S signed an agreement to acquire the business assets of the machinery rental company Jydsk Materiel Udlejning located in West Jutland. For Ramirent Denmark, the acquisition contributes with approximately EUR 1.5 million in annual sales. The acquisition will be integrated into group figures as of 1 March 2011.
New incentive programme
On 16 February, 2011 The Board of Directors of Ramirent Plc approved a new Performance Share Program targeted at approximately 60 managers for the earning period 2011-2013. The potential reward from the program for the earning period 2011-2013 will be based on Ramirent’s Total Shareholder Return (TSR), on the Group’s average Return on Invested Capital (ROI) and on the Group’s cumulative Earnings per Share (EPS).
The maximum reward to be paid on the basis of the earning period 2011-2013 will correspond to the value of up to 287,000 Ramirent Plc shares (including also the proportion to be paid in cash).
Decision to repurchase own shares
The Board of Directors of Ramirent Plc has on 16 February, 2011, based on the authorisation by the Annual General Meeting held on 29 March 2010, decided on the repurchase of up to 287,000 shares of the Company. The repurchase will not commence until one week after the publication of the Board’s decision on 16 February 2011.
MARKET OUTLOOK 2011
Overall, the new residential construction, infrastructure and renovation construction markets are expected to develop favourably, while demand for commercial construction remains weak, especially in the Nordic countries. The improved balance between supply and demand in certain product groups indicates a healthier price level going forward.
According to the forecast published by the Confederation of Finnish Construction Industries RT in October 2010, construction is expected to grow by 3% in 2011 in Finland.
According to the forecast published by the Swedish Construction Federation in October 2010, construction is expected to grow by 5% in 2011 in Sweden.
According to the forecast published by Euroconstruct in December 2010, construction is expected to grow by 3% in 2011 in Norway and by 3% in 2011 in Denmark. In Europe East countries construction is expected to increase by 10% in 2011 in Estonia, by 4% in Latvia, by 5% in Lithuania and by 3 to 7% in Russia. In Europe Central countries Euroconstruct forecasts construction to grow by 13% in 2011 in Poland and, by 5% in Hungary but decrease by 3% in Slovakia and by 3% in Czech Republic.
RAMIRENT OUTLOOK 2011
As a result of increased construction activity and improving price levels, net sales are expected to increase in 2011, and the result before taxes is expected to improve compared to 2010.
PROPOSAL OF THE BOARD ON THE USE OF DISTRIBUTABLE FUNDS
The parent company’s distributable equity on December 31, 2010 is EUR 433,456,994.92, of which the net profit from the financial year is EUR 65,163,372.38.
The Board of Directors proposes to the Annual General Meeting 2011 that a dividend of EUR 0.25 (0.15) per share be paid for the financial year 2010. The proposed dividend will be paid to shareholders registered in Ramirent’s shareholder register maintained by Euroclear Finland Ltd on the record date for dividend payment 12 April 2011. The Board of Directors proposes that the dividend be paid on 26 April 2011.
ANNUAL GENERAL MEETING 2011
Ramirent Plc’s Annual General Meeting will be held on Thursday 7 April 2011, at 4:30 p.m. at Pörssisali in Pörssitalo (address: Fabianinkatu 14, 00100 Helsinki). Ramirent Plc’s Annual Report will be published on the Company’s website on Monday 28 February 2011.
FORWARD-LOOKING STATEMENTS
Certain statements in this report, which are not historical facts, including, without limitation, those regarding expectations for general economic development and market situation; regarding customer industry profitability and investment willingness; regarding Company growth, development and profitability; regarding cost savings; regarding fluctuations in exchange rates and interest levels; regarding the success of pending and future acquisitions and restructurings; and statements preceded by "believes," "expects," "anticipates," "foresees" or similar expressions are forward-looking statements.
These statements are based on current expectations and currently known facts. Therefore, they involve risks and uncertainties that may cause actual results to differ materially from results currently expected by the Company.
| CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | ||||
| (EUR 1,000) | 10-12/10 | 10-12/09 | 1-12/10 | 1-12/09 |
| Net sales | 150,111 | 126,183 | 531,284 | 502,500 |
| Other operating income | 456 | 370 | 1,616 | 2,060 |
| Materials and services | -51,045 | -43,661 | -177,118 | -157,153 |
| Employee benefit expenses | -38,170 | -33,301 | -136,214 | -130,934 |
| Depreciation and amortisation | -25,625 | -29,805 | -97,716 | -101,113 |
| Other operating expenses | -24,478 | -23,417 | -92,122 | -86,594 |
| EBIT | 11,251 | -3,632 | 29,731 | 28,766 |
| Financial income | 3,814 | 3,838 | 13,780 | 17,936 |
| Financial expenses | -6,306 | -7,461 | -22,658 | -34,027 |
| EBT | 8,760 | -7,255 | 20,853 | 12,675 |
| Income taxes | -1,635 | -2,062 | -6,212 | -7,992 |
| NET RESULT FOR THE PERIOD | 7,125 | -9,317 | 14,640 | 4,683 |
| Other comprehensive income: | ||||
| Translation differences | 2,932 | 2,159 | 16,913 | 19,105 |
| Cash flow hedges | 916 | 1,438 | -2,097 | 1,148 |
| Portion of cash flow hedges reclassified to profit or loss | 156 | -218 | 2,121 | -218 |
| Entries on non-current assets held for sale | — | -99 | — | -99 |
| Income tax on other comprehensive income | -235 | -291 | -239 | -216 |
| OTHER COMPREHENSIVE INCOME FOR THE PERIOD, NET OF INCOME TAX | 3,769 | 2,989 | 16,698 | 19,720 |
| TOTAL COMPREHENSIVE INCOME/EXPENSE FOR THE PERIOD | 10,894 | -6,328 | 31,339 | 24,403 |
| Net result for the period attributable to: | ||||
| Owners of the parent company | 7,125 | -9,317 | 14,640 | 4,683 |
| Non-controlling interest | — | — | — | — |
| TOTAL | 7,125 | -9,317 | 14,640 | 4,683 |
| Total comprehensive income for the period attributable to: | ||||
| Owners of the parent company | 10,894 | -6,328 | 31,339 | 24,403 |
| Non controlling interest | — | — | — | — |
| TOTAL | 10,894 | -6,328 | 31,339 | 24,403 |
| Earnings per share (EPS), basic and diluted, EUR | 0.07 | -0.09 | 0.13 | 0.04 |
| ASSETS | ||
| (EUR 1,000) | 31.12.2010 | 31.12.2009 |
| NON-CURRENT ASSETS | ||
| Property, plant and equipment | 427,248 | 456,076 |
| Goodwill | 93,211 | 87,194 |
| Other intangible assets | 10,348 | 5,851 |
| Available-for-sale investments | 422 | 53 |
| Deferred tax assets | 13,325 | 7,660 |
| NON-CURRENT ASSETS, TOTAL | 544,555 | 556,833 |
| CURRENT ASSETS | ||
| Inventories | 15,856 | 14,574 |
| Trade and other receivables | 96,616 | 80,146 |
| Current tax assets | 2,902 | 2,260 |
| Cash and cash equivalents | 1,352 | 1,800 |
| CURRENT ASSETS, TOTAL | 116,727 | 98,780 |
| Non-current assets held for sale | — | 370 |
| TOTAL ASSETS | 661,282 | 655,982 |
| EQUITY AND LIABILITIES | ||
| (EUR 1,000) | 31.12.2010 | 31.12.2009 |
| EQUITY | ||
| Share capital | 25,000 | 25,000 |
| Revaluation fund | -2,472 | -2,319 |
| Invested unrestricted equity fund | 113,329 | 113,329 |
| Retained earnings | 181,783 | 169,560 |
| Items recognised directly to equity on non-current assets held for sale | — | 62 |
| PARENT COMPANY SHAREHOLDERS’ EQUITY | 317,640 | 305,632 |
| Non-controlling interests | — | — |
| EQUITY, TOTAL | 317,640 | 305,632 |
| NON-CURRENT LIABILITIES | ||
| Deferred tax liabilities | 60,413 | 50,798 |
| Pension obligations | 6,866 | 9,750 |
| Provisions | 2,347 | 3,856 |
| Interest-bearing liabilities | 137,384 | 198,061 |
| Other liabilities | 2,200 | — |
| NON-CURRENT LIABILITIES, TOTAL | 209,209 | 262,466 |
| CURRENT LIABILITIES | ||
| Trade payables and other liabilities | 89,480 | 67,013 |
| Provisions | 1,762 | 8,477 |
| Current tax liabilities | 2,658 | 1,501 |
| Interest-bearing liabilities | 40,533 | 10,894 |
| CURRENT LIABILITIES, TOTAL | 134,433 | 87,885 |
| LIABILITIES, TOTAL | 343,642 | 350,351 |
| TOTAL EQUITY AND LIABILITIES | 661,282 | 655,982 |
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY | ||||||||||||||
| A=Share capital | ||||||||||||||
| B=Revaluation fund | ||||||||||||||
| C=Invested unrestricted equity fund | ||||||||||||||
| D=Translation differences | ||||||||||||||
| E=Retained earnings | ||||||||||||||
| F=Entries on non-current assets held for sale | ||||||||||||||
| G=Total equity | ||||||||||||||
| 1) Equity 1.1.2009 | ||||||||||||||
| 2) Share based payments | ||||||||||||||
| 3) Total comprehensive income for the period | ||||||||||||||
| 4) Equity 31.12.2009 | ||||||||||||||
| 5) Purchase of treasury shares | ||||||||||||||
| 6) Dividend distribution | ||||||||||||||
| 7) Equity 31.12.2010 | ||||||||||||||
| (EUR 1,000) | ||||||||||||||
| A | B | C | D | E | F | G | ||||||||
| 1) | 25,000 | -3,007 | 113,329 | -36,609 | 182,246 | 136 | 281,095 | |||||||
| 2) | — | — | — | — | 134 | — | 134 | |||||||
| 3) | — | 688 | — | 19,105 | 4,683 | -74 | 24,403 | |||||||
| 4) | 25,000 | -2,319 | 113,329 | -17,504 | 187,064 | 62 | 305,632 | |||||||
| 2) | — | — | — | — | -88 | — | -88 | |||||||
| 5) | — | — | — | — | -2,939 | — | -2,939 | |||||||
| 6) | — | — | — | — | -16,305 | — | -16,305 | |||||||
| 3) | — | -153 | — | 16,913 | 14,640 | -62 | 31,339 | |||||||
| 7) | 25,000 | -2,472 | 113,329 | -591 | 182,374 | — | 317,640 | |||||||
Opening balance of cumulative transaction differences at the beginning of comparative period is adjusted against retained earnings amounting to EUR 3,101 thousands. Adjustment has no effect on retained earnings and cumulative transaction differences at total. Adjustment is based on more exact information of cumulative transaction differences at the opening balance of comparative period.
| CONSOLIDATED CONDENSED CASH FLOW STATEMENT | ||||
| (EUR million) | 10-12/10 | 10-12/09 | 1-12/10 | 1-12/09 |
| Cash flow from operating activities | 39.8 | 28.2 | 104.2 | 107.7 |
| Cash flow from investing activities | -15.6 | -8.6 | -56.2 | -20.0 |
| Cash flow from financing activities | ||||
| Borrowings / repayment of short-term borrowings | -4.2 | -8.5 | 0.6 | -19.1 |
| Borrowings / repayment of long-term debt | -22.2 | -11.0 | -29.8 | -68.8 |
| Purchase of treasury shares | -0.9 | — | -2.9 | — |
| Dividends paid | — | — | -16.3 | — |
| Cash flow from financing activities | -27.4 | -19.5 | -48.5 | -87.9 |
| Net change in cash and cash equivalents | -3.1 | — | -0.5 | -0.3 |
| Cash and cash equivalents at the beginning of the period | 4.4 | 1.8 | 1.8 | 2.1 |
| Translation difference on cash and cash equivalents | 0.1 | — | 0.1 | — |
| Net change in cash and cash equivalents | -3.2 | — | -0.5 | -0.3 |
| Cash and cash equivalents at the end of the period | 1.4 | 1.8 | 1.4 | 1.8 |
| KEY FINANCIAL FIGURES | 10-12/10 | 10-12/09 | 1-12/10 | 1-12/09 |
| Interest-bearing debt, (EUR million) | 177.9 | 209.0 | ||
| Net debt, (EUR million) | 176.6 | 207.2 | ||
| Invested capital (EUR million), end of period | 495.6 | 514.6 | ||
| Return on invested capital (ROI), % 1) | 8.6% | 8.5% | ||
| Gearing, % | 55.6% | 67.8% | ||
| Equity ratio, % | 48.0% | 46.6% | ||
| Personnel, average | 3,043 | 3,313 | ||
| Personnel, end of period | 3,048 | 3,021 | ||
| Gross investments in non-current assets (EUR million) | 18.1 | 7.5 | 62.0 | 17.5 |
| Gross investments, % of net sales | 12.1% | 5.9% | 11.7% | 3.5% |
| 1) The figures are calculated on a rolling twelve month basis. | ||||
| SHARE RELATED KEY FIGURES | ||
| 1-12/10 | 1-12/09 | |
| Earnings per share (EPS) weighted average, diluted, EUR | 0.13 | 0.04 |
| Earnings per share (EPS) weighted average, basic, EUR | 0.13 | 0.04 |
| Equity per share, end of period, diluted, EUR | 2.93 | 2.81 |
| Equity per share, end of period, basic, EUR | 2.93 | 2.81 |
| Number of outstanding shares (weighted average), diluted | 108,575,291 | 108,697,328 |
| Number of outstanding shares (weighted average), basic | 108,575,291 | 108,697,328 |
| Number of outstanding shares (end of period), diluted | 108,304,136 | 108,697,328 |
| Number of outstanding shares (end of period), basic | 108,304,136 | 108,697,328 |
| NOTES TO THE INTERIM FINANCIAL STATEMENTS | |||||
| SEGMENT INFORMATION | |||||
| Segment information is presented according to the IFRS standards. | |||||
| Items below EBIT – financial items and taxes – are not allocated to the segments. | |||||
| Net sales | |||||
| (EUR million) | 10-12/10 | 10-12/09 | 1-12/10 | 1-12/09 | |
| Finland | |||||
| – Net sales (external) | 34.8 | 30.4 | 135.2 | 125.9 | |
| – Inter-segment sales | 0.5 | 0.2 | 1.8 | 8.4 | |
| Sweden | |||||
| – Net sales (external) | 44.8 | 32.2 | 144.5 | 127.2 | |
| – Inter-segment sales | 0.2 | 0.2 | 0.7 | 0.6 | |
| Norway | |||||
| – Net sales (external) | 30.8 | 28.5 | 113.7 | 109.1 | |
| – Inter-segment sales | 0.3 | — | 0.7 | — | |
| Denmark | |||||
| – Net sales (external) | 8.7 | 8.9 | 32.9 | 40.0 | |
| – Inter-segment sales | 0.8 | 0.5 | 2.7 | 2.8 | |
| Europe East | |||||
| – Net sales (external) | 12.3 | 9.9 | 39.5 | 36.1 | |
| – Inter-segment sales | 1.1 | 1.2 | 3.2 | 15.2 | |
| Europe Central | |||||
| – Net sales (external) | 18.7 | 16.2 | 65.4 | 64.1 | |
| – Inter-segment sales | 0.2 | 0.3 | 1.2 | 1.0 | |
| Elimination of sales between segments | -3.0 | -2.4 | -10.2 | -28.1 | |
| Net sales, total | 150.1 | 126.2 | 531.3 | 502.5 | |
| Other operating income | 0.5 | 0.4 | 1.6 | 2.1 | |
| EBIT | ||||
| (EUR million) | 10-12/10 | 10-12/09 | 1-12/10 | 1-12/09 |
| Finland | 2.9 | 0.1 | 13.7 | 12.1 |
| % of net sales | 8.1% | 0.2% | 10.0% | 9.0% |
| Sweden | 8.3 | 4.4 | 23.3 | 20.9 |
| % of net sales | 18.5% | 13.4% | 16.1% | 16.4% |
| Norway | 0.1 | 1.0 | 2.3 | 9.1 |
| % of net sales | 0.3% | 3.4% | 2.0% | 8.4% |
| Denmark | -0.7 | -4.4 | -2.2 | -4.3 |
| % of net sales | -7.8% | -46.2% | -6.2% | -10.1% |
| Europe East | 1.1 | -2.1 | -3.5 | -10.6 |
| % of net sales | 8.5% | -18.5% | -8.3% | -20.7% |
| Europe Central | 1.0 | -1.0 | 0.8 | 2.8 |
| % of net sales | 5.1% | -6.2% | 1.2% | 4.3% |
| Net items not allocated to operating segments | -1.4 | -1.6 | -4.7 | -1.3 |
| Group operating profit | 11.3 | -3.6 | 29.7 | 28.8 |
| % of net sales | 7.5% | -2.9% | 5.6% | 5.7% |
| DEPRECIATION, AMORTISATION AND IMPAIRMENT CHARGES | ||||
| 10-12/10 | 10-12/09 | 1-12/10 | 1-12/09 | |
| (EUR million) | ||||
| Finland | 5.0 | 6.6 | 20.0 | 18.4 |
| Sweden | 6.3 | 4.8 | 20.7 | 19.8 |
| Norway | 4.6 | 4.7 | 18.3 | 19.5 |
| Denmark | 1.8 | 4.6 | 6.9 | 11.1 |
| Europe East | 3.3 | 4.3 | 15.2 | 17.1 |
| Europe Central | 4.7 | 4.7 | 17.0 | 15.3 |
| Unallocated items and eliminations | -0.1 | -0.1 | -0.3 | -0.2 |
| Total | 25.6 | 29.8 | 97.7 | 101.1 |
|
RECONCILIATION OF GROUP EBIT TO EBT |
||||
| 10-12/10 | 10-12/09 | 1-12/10 | 1-12/09 | |
| Group EBIT | 11.3 | -3.6 | 29.7 | 28.8 |
| Unallocated items: | ||||
| Financial income | 3.8 | 3.8 | 13.8 | 17.9 |
| Financial expenses | -6.3 | -7.5 | -22.7 | -34.0 |
| EBT | 8.8 | -7.3 | 20.9 | 12.7 |
| CAPITAL EXPENDITURE | ||||
| (EUR million) | 10-12/10 | 10-12/09 | 1-12/10 | 1-12/09 |
| Finland | 4.6 | 4.6 | 17.2 | 12.7 |
| Sweden | 9.2 | 1.5 | 30.3 | 3.6 |
| Norway | 3.2 | 2.7 | 11.5 | 6.1 |
| Denmark | 0.7 | — | 1.4 | 1.0 |
| Europe East | 1.2 | 0.3 | 4.3 | 0.9 |
| Europe Central | 2.1 | 1.9 | 7.4 | 13.5 |
| Unallocated items and eliminations | -2.9 | -3.3 | -10.2 | -20.2 |
| Total | 18.1 | 7.5 | 62.0 | 17.5 |
| ASSETS ALLOCATED TO SEGMENTS | ||||
| (EUR million) | 1-12/10 | 1-12/09 | ||
| Finland | 124.6 | 132.1 | ||
| Sweden | 155.4 | 134.2 | ||
| Norway | 141.8 | 142.2 | ||
| Denmark | 42.4 | 49.2 | ||
| Europe East | 91.5 | 99.9 | ||
| Europe Central | 114.2 | 124.5 | ||
| Unallocated items and eliminations | -8.6 | -26.1 | ||
| Total | 661.3 | 656.0 | ||
CHANGES IN NON-CURRENT ASSETS
| (EUR 1,000) | ||||
| 31.12.2010 | 31.12.2009 | |||
| OPENING BALANCE | 549,173 | 623,242 | ||
| Depreciation | -97,716 | -101,113 | ||
| Additions | ||||
| Machinery&Equipment | 52,668 | 15,010 | ||
| Other Additions | 10,633 | 2,503 | ||
| Disposals (sales) | -8,224 | -12,024 | ||
| Other * | 24,695 | 21,554 | ||
| CLOSING BALANCE | 531,229 | 549,173 | ||
| Non-current assets held for sale | — | 370 | ||
| * Other includes translation differences, reclassifications | ||||
| and adjustment to estimated consideration for acquisitions | ||||
| COMMITMENTS AND CONTINGENT LIABILITIES | ||
| (EUR million) | 31.12.2010 | 31.12.2009 |
| Suretyships | 3.2 | 2.7 |
| Committed investments | 0.5 | 0.1 |
| Non-cancellable minimum future operating lease payments | 143.4 | 169.4 |
| Non-cancellable minimum future finance lease payments | 0.3 | 0.3 |
| Finance lease liability in the balance sheet | -0.3 | -0.3 |
| Non-cancellable minimum future lease payments off-balance sheet | 143.4 | 169.4 |
| Obligations arising from derivative instruments | ||
| Interest rate derivatives | ||
| Nominal value of underlying object | 143.2 | 196.1 |
| Fair value of the derivative instruments | -2.4 | -0.1 |
| Foreign currency derivatives | ||
| Nominal value of underlying object | 40.4 | — |
| Fair value of the derivative instruments | 0.1 | — |
QUARTERLY SEGMENT INFORMATION
| Full | Full | |||||||||
| year | Q4 | Q3 | Q2 | Q1 | year | Q4 | Q3 | Q2 | Q1 | |
| 2010 | 2010 | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 | 2009 | |
| Net sales, EUR million | ||||||||||
| Finland | 136.9 | 35.2 | 37.5 | 36.1 | 28.1 | 134.3 | 30.6 | 41.2 | 33.8 | 28.7 |
| Sweden | 145.2 | 44.9 | 36.1 | 34.9 | 29.4 | 127.9 | 32.4 | 30.8 | 32.6 | 32.0 |
| Norway | 114.4 | 31.1 | 27.6 | 27.4 | 28.4 | 109.2 | 28.6 | 26.5 | 25.2 | 28.9 |
| Denmark | 35.6 | 9.5 | 9.0 | 9.0 | 8.1 | 42.9 | 9.5 | 10.5 | 11.6 | 11.3 |
| Europe East | 42.7 | 13.4 | 12.3 | 9.5 | 7.5 | 51.3 | 11.2 | 18.9 | 12.0 | 9.3 |
| Europe Central | 66.6 | 18.9 | 19.7 | 15.9 | 12.1 | 65.0 | 16.4 | 18.2 | 16.3 | 14.1 |
| Elimination of sales between segments | -10.2 | -3.0 | -1.2 | -4.0 | -2.0 | -28.1 | -2.5 | -16.6 | -6.9 | -2.1 |
| Net sales, total | 531.3 | 150.1 | 140.9 | 128.7 | 111.5 | 502.5 | 126.2 | 129.5 | 124.6 | 122.2 |
| Full | Full | |||||||||
| year | Q4 | Q3 | Q2 | Q1 | year | Q4 | Q3 | Q2 | Q1 | |
| 2010 | 2010 | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 | 2009 | |
| EBIT, EUR million and % of net sales | ||||||||||
| Finland | 13.7 | 2.9 | 7.1 | 4.0 | -0.2 | 12.1 | 0.1 | 6.3 | 4.9 | 0.9 |
| % of net sales | 10.0% | 8.1% | 18.8% | 11.1% | -0.8% | 9.0% | 0.2% | 15.3% | 14.4% | 3.1% |
| Sweden | 23.3 | 8.3 | 7.4 | 5.0 | 2.6 | 20.9 | 4.4 | 4.4 | 6.9 | 5.3 |
| % of net sales | 16.1% | 18.5% | 20.6% | 14.4% | 8.8% | 16.4% | 13.4% | 14.3% | 21.1% | 16.6% |
| Norway | 2.3 | 0.1 | 1.7 | 1.0 | -0.4 | 9.1 | 1.0 | 2.3 | 3.4 | 2.5 |
| % of net sales | 2.0% | 0.3% | 6.1% | 3.7% | -1.6% | 8.4% | 3.4% | 8.6% | 13.4% | 8.7% |
| Denmark | -2.2 | -0.7 | -0.2 | -0.7 | -0.6 | -4.3 | -4.4 | -0.3 | 0.4 | -0.1 |
| % of net sales | -6.2% | -7.8% | -1.9% | -7.4% | -7.8% | -10.1% | -46.2% | -2.8% | 3.6% | -0.6% |
| Europe East | -3.5 | 1.1 | -0.7 | -1.6 | -2.4 | -10.6 | -2.1 | -2.0 | -3.3 | -3.3 |
| % of net sales | -8.3% | 8.5% | -5.7% | -16.5% | -32.2% | -20.7% | -18.5% | -10.4% | -27.4% | -35.8% |
| Europe Central | 0.8 | 1.0 | 2.2 | 0.3 | -2.6 | 2,8 | -1.0 | 1.6 | 1.6 | 0.7 |
| % of net sales | 1.2% | 5.1% | 11.2% | 1.9% | -21.8% | 4.3% | -6.2% | 8.6% | 9.5% | 5.1% |
| Costs not allocated to segments | -4.7 | -1.4 | -0.9 | -0.7 | -1.8 | -1.3 | -1.6 | -0.6 | -0.4 | 1.2 |
| Group EBIT | 29.7 | 11.3 | 16.6 | 7.4 | -5.6 | 28.8 | -3.6 | 11.7 | 13.5 | 7.2 |
| % of net sales | 5.6% | 7.5% | 11.8% | 5.8% | -5.0% | 5.7% | -2.9% | 9.0% | 10.8% | 5.9% |
ANALYST AND PRESS BRIEFING
A briefing for investment analysts and the press will be arranged on Wednesday 16 February 2011 at 11.00 a.m. Finnish time at Palace Gourmet, cabinet Konferenssisali (visiting address: Eteläranta 10, 10th fl., Helsinki).
WEBCAST AND CONFERENCE CALL
You can participate in the analyst briefing on Wednesday 16 February 2011 at 11.00 a.m. Finnish time through a live webcast at www.ramirent.com and conference call. Dial-in number: +44 (0)20 7162 0025 and conference ID code 886741. A recording of the webcast will be available at www.ramirent.com later the same day.
FINANCIAL CALENDAR 2011
Ramirent observes a silent period during the three-week period prior to the publication of annual and interim financial results.
Annual Report 2010 28 February 2011
Annual General Meeting 2011 7 April 2011
Interim Report January-March 2011 10 May 2011 at 9:00 a.m.
Interim Report January-June 2011 12 August 2011 at 9:00 a.m.
Interim Report January-September 2011 9 November 2011 at 9:00 a.m.
The financial information in this stock exchange release has not been audited.
Vantaa, 16 February 2011
RAMIRENT PLC
Board of Directors
FURTHER INFORMATION:
CEO Magnus Rosén tel.+358 20750 2845, magnus.rosen(a)ramirent.com
CFO Jonas Söderkvist tel.+358 20750 3248, jonas.soderkvist(a)ramirent.com
IR Franciska Janzon tel.+358 20750 2859, franciska.janzon(a)ramirent.com
DISTRIBUTION:
NASDAQ OMX Helsinki
Main news media
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 2010, Group sales totalled EUR 531 million. The Group has 3,000 employees at some 378 locations in 13 countries in Northern, Central and Eastern Europe. Ramirent is listed on the NASDAQ OMX Helsinki Ltd.