RAMIRENT PLC INTERIM REPORT 10 MAY 2011 AT 9:00 a.m.

Note! Figures in brackets, unless otherwise indicated, refer to the corresponding period a year earlier.

 

JANUARY-MARCH 2011

– Net sales increased by 20.5% to EUR 134.4 (111.5) million. At comparable exchange rates the growth was 15.1%

– EBITDA MEUR 27.6 (17.5) or 20.6% (15.7%) of net sales

– EBIT MEUR 2.7 (-5.6) or 2.0% (-5.0%) of net sales

– Gross capital expenditure MEUR 31.9 (12.5)

– Cash flow after investments MEUR -10.7 (-4.0)

– The number of outlets grew to 382 (353)

– Ramirent reiterates its outlook for 2011

 

KEY FIGURES

 

(EUR million) 1-3/11 1-3/10 Change 1-12/10
Net sales 134.4 111.5 20.5% 531.3
EBITDA 27.6 17.5 57.6% 127.4
% of net sales 20.6% 15.7%   24.0%
EBIT 2.7 -5.6 147.9% 29.7
% of net sales 2.0% -5.0%   5.6%
Return on invested capital (ROI), % 1) 9.3% 5.8%   8.6%
Invested capital at the end of the period 507.9 523.7 -3.0% 495.6
Net debt 190.6 211.7 -10.0% 176.6
Gearing, % 60.2% 68.4%   55.6%
Equity ratio, % 47.5% 46.4%   48.0%
Personnel at end of period 3 045 3 047 -0.1% 3 048
Gross capital expenditure 31.9 12.5 155.1% 62.0
Gross capital expenditure,% of net sales 23.7% 11.2%   11.7%
Cash flow after investments -10.7 -4.0 -165.3% 48.0
Earnings per share (EPS), (basic and diluted), EUR 0.00 -0.05 98.0% 0.13
Dividend per share, EUR       0.25
         
1) The figures are calculated on a rolling twelve month basis.      

 

MAGNUS ROSÉN, RAMIRENT CEO:

“The positive development that started in the autumn 2010, continued during the first quarter of the year. Activity levels continued to grow in all our operating countries although January-March is typically the quietest quarter of the year. Equipment utilisation rates increased supported by improved demand in customer industries.

We continued our work on making new inroads into new customer sectors with new cooperation agreements established in the agriculture sector and railroad construction sector. During the quarter, we also succeeded in finalising one acquisition in Denmark and two outsourcing deals one in Finland and another in Denmark. We continue to monitor the market for interesting consolidation opportunities.

Profitability improved, but is still burdened by lower price levels compared to pre-downturn levels. Our priority during 2011 is to focus on increasing price levels as the demand is returning to our various product groups. On top of this, we are continuing to develop our offering and product portfolio to cater to our customer’s needs especially in the areas related to eco-efficiency and safety.”

 

RAMIRENT JANUARY – MARCH 2011

BUSINESS ENVIRONMENT

The positive upswing in the market that began in autumn 2010 continued in the first quarter of 2011. Market activity continued to improve within construction and in various industrial sectors. Geographically, demand for rental equipment increased in all Ramirent countries due to higher market activity especially within residential and renovation construction. Of the Nordic countries, Sweden in particular showed strong economic growth. The economy in Finland grew moderately, but industrial production recovery was still slower than in many other countries in Eastern and Central Europe.

 

NET SALES

Ramirent Group January – March 2011 net sales increased 20.5% to EUR 134.4 (111.5) million due to recovery in the construction market activity that started after mid-year 2010. At comparable exchange rates, the Group’s net sales increased 15.1%. Net sales grew in all segments both in euros and at comparable exchange rates. The growth in net sales was especially strong in Sweden, Europe East and Europe Central.

Net sales development by segment was as follows:

 

Net sales        
         
(EUR million) 1-3/11 1-3/10 Change 1-12/10
Finland 30.2 28.1 7.7% 136.9
Sweden 41.3 29.4 40.5% 145.2
Norway 32.6 28.4 15.0% 114.4
Denmark 8.4 8.1 3.2% 35.6
Europe East 9.4 7.5 25.4% 42.7
Europe Central 14.4 12.1 19.0% 66.6
Elimination of sales between segments -1.9 -2.0   -10.2
Net sales, total 134.4 111.5 20.5% 531.3

 

FINANCIAL RESULTS

Ramirent Group January – March 2011 operating result before depreciation (EBITDA) was EUR 27.6 (17.5) million with a margin of 20.6% (15.7%). Profits were burdened by low price and low utilisation levels. Credit losses and net change in the allowance for bad debt totalled EUR -1.1 (-1.0) million. Depreciations amounted to EUR 24.9 (23.1) million.

The Group’s operating result (EBIT) was EUR 2.7 (-5.6) million, representing 2.0% (-5.0%) of net sales. EBIT and EBIT-margin by segment were as follows:

 

EBIT      
       
(EUR million) 1-3/11 1-3/10 1-12/10
Finland 1.3 -0.2 13.7
% of net sales 4.4% -0.8% 10.0%
Sweden 6.1 2.6 23.3
% of net sales 14.9% 8.8% 16.1%
Norway 0.4 -0.4 2.3
% of net sales 1.2% -1.6% 2.0%
Denmark -1.3 -0.6 -2.2
% of net sales -15.0% -7.8% -6.2%
Europe East -1.7 -2.4 -3.5
% of net sales -17.7% -32.2% -8.3%
Europe Central -1.2 -2.6 0.8
% of net sales -8.2% -21.8% 1.2%
Costs not allocated to segments -1.1 -1.8 -4.7
Group EBIT 2.7 -5.6 29.7
% of net sales 2.0% -5.0% 5.6%

 

Net financial items were EUR -2.8 (-0.4) million, including EUR -0.3 (2.9) million net effect of exchange rate changes. The Group’s result before taxes was EUR -0.2 (-6.0) million. Income taxes amounted to EUR 0.1 (0.7) million.

Net result for the review period was EUR -0.1 (-5.3) million. Earnings per share were EUR 0.00 (-0.05). The return on invested capital was 9.3% (5.8%), and the corresponding return on equity was 6.3% (-0.4%). The equity per share was EUR 2.9 (2.9).

 

CAPITAL EXPENDITURE, CASH FLOW AND FINANCIAL POSITION

Ramirent Group January – March 2011 gross capital expenditure on non-current assets totalled EUR 31.9 (12.5) million, of which EUR 29.6 (7.5) million was attributable to investments in machinery and equipment, and the rest was related mainly to goodwill and other intangible assets from acquisitions. The acquisitions completed during the reporting period do not individually or as a whole have a material impact on the result or financial position of the Group.

Disposals of tangible non-current assets at sales value were EUR 3.8 (5.0) million, of which EUR 3.7 (5.0) million was attributable to rental machinery and equipment.

The Group’s three-month cash flow from operating activities amounted to EUR 27.3 (9.8) million, whereof change in net working capital amounted to EUR 1.8 (-0.7) million. Cash flow from investing activities amounted to EUR -38.1 (-13.9) million due to increased investments in rental machinery and equipment as well as acquisitions. Cash flow from operating and investing activities totalled EUR -10.7 (-4.0) million. In the period January-March 2011, own shares were repurchased to the amount of EUR 3.3 million.

Interest-bearing liabilities at the end of the first quarter amounted to EUR 191.5 (214.4) million. Net debt amounted to EUR 190.6 (211.7) million, and gearing was at 60.2% (68.4%).

On 31 March 2011, Ramirent had unused committed back-up loan facilities available of EUR 177.2 million.

Total assets amounted to EUR 666.1 (667.2) million at the end of the review period. The Group equity totalled EUR 316.4 (309.3) million. The Group’s equity ratio rose to 47.5% (46.4%).

 

PERSONNEL AND OUTLET NETWORK

 

  Employees Employees Outlets Outlets
  31 March 2011 31 March 2010 31 March 2011 31 March 2010
Finland 566 646 84 82
Sweden 552 540 74 67
Norway 514 537 41 39
Denmark 150 145 21 21
Europe East 407 367 48 45
Europe Central 835 797 114 99
Group administration 21 15 – –
Total 3 045 3 047 382 353

 

BUSINESS EXPANSIONS AND ACQUISITIONS

On 14 December 2010, Ramirent signed an agreement on the acquisition of the light equipment and hoists operations of a Danish construction company E. Pihl&Søn A.S. and E. Pihl&Søn A.S. signed a 5-year rental agreement with Ramirent.. The transfer of the acquired assets took place on 1 January 2011.

On 1 February 2011, Ramirent 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.

On 8 March 2011, Ramirent exercised its option to acquire the remaining 40% stake in the Slovak-based company Ramirent spol. s.r.o (OTS Bratislava spol.sr.o. (OTS)), of which Ramirent acquired a 60% ownership stake in January 2008.

On 29 March 2011, Destia Oy outsourced its modules and some light machinery as well as related operations to Ramirent and signed a five-year rental agreement with Ramirent Finland Oy. A letter of intent on the cooperation agreement was signed on 10 January 2011. The transfer of the acquired assets took place on 1 April 2011.

 

DEVELOPMENT BY OPERATING SEGMENT

Finland

Ramirent’s January – March net sales in Finland increased by 7.7% to EUR 30.2 (28.1) million. EBIT increased to EUR 1.3 (-0.2) million, representing a margin of 4.4% (-0.8%). The main growth driver was residential construction. Renovation activity was lower as government subsidies for renovation construction decreased. Industrial maintenance activity in general and especially in shipyards was at very low levels. Profitability was burdened by lower activity levels in shipyards as well as low price and utilisation levels in certain product groups, in particular scaffolding. During the quarter, Destia Oy outsourced to Ramirent its modules, some light machinery and related operations and signed a five-year equipment rental agreement with Ramirent. Cooperation agreements were also signed with two new customer sectors in Finland; the Central Union of Agricultural Producers and Forest Owners (MTK) and VR Track, Finland’s largest rail constructor.

Sweden

Ramirent’s January-March net sales in Sweden increased by 40.5% to EUR 41.3 (29.4) million or by 25.1% at comparable exchange rates. EBIT increased to EUR 6.1 (2.6) million, representing a margin of 14.9% (8.8%). Especially civil engineering, public sector demand and housing boosted Ramirent’s growth during the quarter. The growth was driven by Stockholm and the surrounding areas, but central and southern regions of the country also developed positively. Profitability improved based on higher capacity utilisation, but is still burdened by low price levels.

Norway

Ramirent’s January-March net sales in Norway increased by 15.0% to EUR 32.6 (28.4) million or increased by 11.0% at comparable exchange rates. EBIT increased to EUR 0.4 (-0.4) million, representing a margin of 1.2% (-1.6%). The growth driver was the recovery in construction activity especially in the western and northern parts of Norway. Profitability was still burdened by low price levels. A new managing director for Norway was appointed on 1 February 2011.

Denmark

Ramirent’s January-March net sales in Denmark increased by 3.2% to EUR 8.4 (8.1) million or increased by 3.4% at comparable exchange rates. EBIT amounted to -1.3 (-0.6) million representing a margin of -15.0% (-7.8%).  The high level of price competition eased and market conditions have improved slightly. Profitability was burdened by increased costs for intensified sales and marketing activities in advance of the summer season. During the quarter, Ramirent acquired the business assets of machinery rental company Jydsk Materiel Udlejning and the Danish construction company E. Pihl&Søn A.S. outsourced to Ramirent its light equipment and hoists operation and signed a 5-year equipment rental agreement with Ramirent.

Europe East (Russia, the Baltic States and Ukraine)

Ramirent’s January-March net sales in Europe East increased by 25.4% to EUR 9.4 (7.5) million or increased by 22.8% at comparable exchange rates. EBIT amounted to -1.7(-2.4) million, representing a margin of -17.7% (-32.2%). Growth drivers were mainly infrastructural construction in Russia and energy-related investments in particular in Baltics and Ukraine. Business volumes improved also in the Baltic States, especially in Lithuania, and also in Ukraine. Ramirent strengthened its market coverage in Ukraine by opening one new outlet during the quarter, totalling 7 outlets at the end of the quarter. Profitability was still burdened by low price levels and low business volumes due to tough winter conditions.

Europe Central (Poland, Hungary, Czech Republic and Slovakia)

Ramirent’s January-March net sales in Europe Central increased by 19.0% to EUR 14.4 (12.1) million or increased by 18.5% at comparable exchange rates. EBIT amounted to -1.2(-2.6) million, representing a margin of -8.2% (-21.8%). The growth drivers were the recovery in construction and industrial activity in Poland and Hungary. Ramirent continued to improve its market coverage in Czech Republic and expanded its Czech network with 3 new outlets, totalling 21 outlets at the end of quarter. Profitability was burdened by low price levels and business volumes especially in Czech Republic and Slovakia.

Decisions of the Annual General Meeting

Ramirent Plc’s Annual General Meeting, which was held on 7 April 2011, adopted the 2010 financial statements and discharged the members of the Board of Directors and the President and CEO from liability.

The number of members of the Board of Directors was confirmed as six (6). Board members Kaj-Gustaf Bergh, Johan Ek, Peter Hofvenstam, Erkki Norvio, and Susanna Renlund were re-elected and Gry Hege Sølsnes was elected as new Board member for the term that will continue until the end of the next Annual General Meeting. The remunerations of the members of the Board of Directors remained unchanged.

The number of auditors was confirmed as one (1) and PricewaterhouseCoopers Oy (“PwC”) was elected as the Company’s auditor with Authorised Public Accountant Ylva Eriksson as principally responsible auditor for the term that will continue until the end of the next Annual General Meeting.

The General Meeting approved the authorisation for the Board of Directors to decide on the repurchase of a maximum of 10,869,732 Company’s own shares until the next Annual General Meeting. The authorisation also contains an entitlement for the Company to accept its own shares as pledge.

Dividend for 2010

The Annual General Meeting adopted the Board’s proposal that a dividend of EUR 0.25 per share be paid based on the adopted balance sheet for the financial year ended on 31 December 2010. The date of record for dividend payment was 12 April 2011 and the dividend was paid on 26 April 2011.

 

SHARE CAPITAL AND TRADING IN THE 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.

Ramirent Plc’s market capitalization at the end of March 2011 was EUR 1,260.9 (851.1) million. Trading closed at EUR 11.60 (7.83). The highest quote for the period was EUR 12.37 (8.07), and the lowest was EUR 9.50 (6.17). The average trading price was EUR 11.16 (7.11).

The value of share turnover during the review period was EUR 103.4 (101.0) million, equivalent to 9,266,708 (14,142,407) traded Ramirent shares, i.e., 8.5% (13.0%) of Ramirent’s total number of shares.

According to the nominee registers, approximately 18.6% of the listed shares were owned by foreigners as per 31 March 2011. Other foreign ownership at the end of the period totalled approximately 35.3%. Thus a total of 58.9% of Ramirent’s listed shares were owned by international investors.

 

REPURCHASE OF RAMIRENT’S OWN SHARES

On the basis of the Annual General Meeting’s authorization, the Board of Directors of Ramirent Plc decided on 16 February 2011 on the repurchase of up to 287,000 shares of the Company. During January–March 2011, Ramirent used its previous authorisation to repurchase own shares and bought back in total 277,000 shares. At the end of March, the Group had 670,192 shares in its possession. The shares in the Group’s possession represent 0.6% of the total number of Ramirent’s shares.

Other important events during the review period

Changes in the Ramirent Group Management Team

Bjørn Larsen (51), M.Sc. (Business and Mark.), MBA, was 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), was appointed as Senior Vice President of the Ramirent Denmark segment and member of the Group Management Team as of 19 January 2011.

The aim of the composition of the Group Management Team is to be close to the operative business and emphasize the business segments’ and key functions’ roles. 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.

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).

 

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 is focused on three major objectives: 1) sustainable top-line growth through strengthening the customer offering, widening the customer portfolio and, growing through outsourcing deals and selected acquisitions; 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 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.

 

ESSENTIAL RISKS AFFECTING RAMIRENT’S OPERATIONS

Ramirent is subject to various business risks. Certain risk factors are deemed to be of material importance to the future development of Ramirent. Risks are evaluated in relation to achievement of the Company’s financial and strategic targets. Overall, Ramirent expects that its risk exposure is high due to the turmoil in the financial markets and the economic cycle of the construction markets. The main risks affecting Ramirent’s business operations, its profitability and financial position are those connected with the economic cycles of the construction industry and increased competition in the rental sector in its operating countries. The main risks are described in the annual report 2010.

 

EVENTS AFTER THE REVIEW PERIOD

On 1 April 2011, Ramirent acquired the assets of machinery and equipment rental business of the Czech company Stavební Doprava a Mechanizace (SDM). The acquisition strengthened Ramirent’s presence with three new outlets in Czech Republic. The SDM operations have been consolidated as of 1 April 2011.

On 4 May 2011, Ramirent acquired the machinery and equipment rental business of the Czech construction machinery company RENT MB s.r.o. (“RENT MB”). The acquisition strengthens Ramirent’s existing network in Czech Republic with two new outlets in the Central and Northern part of the country.       

 

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.

According to the forecast published by VTT Expert Service Oy on 2 May 2011, construction is expected to grow by 4% and rental of construction machinery and equipment by 10% in 2011 in Finland.

According to the forecast published by the Swedish Construction Federation in February 2011, construction is expected to grow by 7% 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.

Taking this into account, Ramirent expects the recovery in the rental markets to continue. The improved balance between supply and demand in certain product groups indicates a healthier price level going forward.

 

RAMIRENT OUTLOOK 2011

Ramirent reiterates its outlook for 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.

 

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.

 

TABLES

This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting, as adopted by the EU and in conformity with the accounting principles published in the 2010 financial statements.

Ramirent has adopted the following new or amended IFRS standards and IFRIC interpretations as of 1 January 2011:

 

– IAS 32 (Amendment) – Financial instruments: Classification of rights issues

– IAS 24 (Revised) – Related party disclosures

– IFRIC 19 – Extinguishing financial liabilities with equity instruments

– IFRIC 14 (Amendment) – Prepayments of a minimum funding requirement

– Annual improvements to IFRS.

The abovementioned changes do not have any material impact on Ramirent’s financial reporting.

 

Consolidated financial statements have been presented in thousand euros unless otherwise stated. Due to roundings individual figures may differ from the totals.

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME      
       
(EUR 1,000) 1-3/11 1-3/10 1-12/10
Net sales 134 351 111 525 531 284
Other operating income 342 299 1 616
       
Materials and services -43 815 -38 690 -177 118
Employee benefit expenses -36 629 -33 493 -136 214
Depreciation and amortisation -24 933 -23 115 -97 716
Other operating expenses -26 635 -22 117 -92 122
EBIT 2 681 -5 591 29 731
       
Financial income 2 116 6 101 13 780
Financial expenses -4 954 -6 528 -22 658
EBT -157 -6 019 20 853
Income taxes 50 707 -6 212
NET RESULT FOR THE PERIOD -108 -5 312 14 640
       
       
Other comprehensive income      
       
Translation differences 771 10 419 16 913
Cash flow hedges 1 397 -2 099 -2 097
Portion of cash flow hedges transferred to profit or loss 168 898 2 121
Income tax on other comprehensive income -351 312 -239
OTHER COMPREHENSIVE INCOME FOR THE PERIOD, NET OF TAX 1 984 9 531 16 698
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 1 877 4 218 31 339
       
Net result for the period attributable to:      
Owners of the parent company -108 -5 312 14 640
Non-controlling interest – – –
TOTAL -108 -5 312 14 640
       
Total comprehensive income for the period attributable to:    
Owners of the parent company 1 877 4 218 31 339
Non controlling interest – – –
TOTAL 1 877 4 218 31 339
       
Earnings per share (EPS), basic and diluted, EUR 0.00 -0.05 0.13
             

 

CONSOLIDATED BALANCE SHEET
 
ASSETS		      
       
(EUR 1,000) 31.3.2011 31.3.2010 31.12.2010
NON-CURRENT ASSETS      
Property, plant and equipment 432 136 453 074 427 248
Goodwill 94 030 93 398 93 211
Other intangible assets 10 565 7 047 10 348
Available-for-sale investments 422 53 422
Deferred tax assets 14 347 9 593 13 325
NON-CURRENT ASSETS, TOTAL 551 500 563 164 544 555
       
CURRENT ASSETS      
Inventories 16 493 14 714 15 856
Trade and other receivables 94 804 82 801 96 616
Current tax assets 2 371 3 427 2 902
Cash and cash equivalents 911 2 758 1 352
CURRENT ASSETS, TOTAL 114 580 103 701 116 727
Non-current assets held for sale – 370 –
       
TOTAL ASSETS 666 080 667 234 661 282

 

EQUITY AND LIABILITIES      
       
(EUR 1,000) 31.3.2011 31.3.2010 31.12.2010
EQUITY      
Share capital 25 000 25 000 25 000
Revaluation fund -1 258 -3 207 -2 472
Invested unrestricted equity fund 113 329 113 329 113 329
Retained earnings 179 374 174 143 181 783
Items recognised directly to equity on non-current assets held for sale – 62 –
PARENT COMPANY SHAREHOLDERS’ EQUITY 316 445 309 327 317 640
Non-controlling interests – – –
EQUITY, TOTAL 316 445 309 327 317 640
       
NON-CURRENT LIABILITIES      
Deferred tax liabilities 59 880 53 178 60 413
Pension obligations 7 106 10 380 6 866
Provisions 2 205 3 557 2 347
Interest-bearing liabilities 131 408 197 728 137 384
Other long-term liabilities 2 602 – 2 200
NON-CURRENT LIABILITIES, TOTAL 203 200 264 844 209 209
       
CURRENT LIABILITIES      
Trade payables and other liabilities 82 362 68 587 89 480
Provisions 1 415 6 956 1 762
Current tax liabilities 2 595 828 2 658
Interest-bearing liabilities 60 063 16 692 40 533
CURRENT LIABILITIES, TOTAL 146 435 93 063 134 433
       
LIABILITIES, TOTAL 349 635 357 907 343 642
       
TOTAL EQUITY AND LIABILITIES 666 080 667 234 661 282
 
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 1.1.2010
2) Share based payments
3) Total comprehensive income for the period
4) Equity 31.3.2010
5) Purchase of treasury shares
6) Dividend distribution
7) Equity 31.12.2010
8) Equity 31.3.2011 
         
                 
(EUR 1,000)          
A B C D E F G
1) 25 000 -2 319 113 329 -17 504 187 064 62 305 632
2) – – – – -523 – -523
3)  – -888  – 10 419 -5 312 – 4 218
4) 25 000 -3 207 113 329 -7 085 181 229 62 309 327
               
2) – – – – 435 – 435
5) – – – – -2 939 – -2 939
6) – – – – -16 305 – -16 305
3)  – 735  – 6 495 19 952 -62 27 121
7) 25 000 -2 472 113 329 -591 182 374 – 317 640
               
2) – – – – 190 – 190
5) – – – – -3 262 – -3 262
3)  – 1 214  – 771 -108 – 1 877
8) 25 000 -1 258 113 329 180 179 194 – 316 445
                             

 

CONSOLIDATED CONDENSED CASH FLOW STATEMENT      
       
(EUR million) 1-3/11 1-3/10 1-12/10
Cash flow from operating activities 27.3 9.8 104.2
       
Cash flow from investing activities -38.1 -13.9 -56.2
       
Cash flow from financing activities      
Borrowings / repayment of short-term debt 18.7 -7.4 0.6
Borrowings / repayment of long-term debt -5.2 12.4 -29.8
Acquisition of treasury shares -3.3 – -2.9
Dividends paid – – -16.3
Cash flow from financing activities 10.3 5.0 -48.5
       
Net change in cash and cash equivalents -0.4 1.0 -0.5
       
Cash and cash equivalents at the beginning of the period 1.4 1.8 1.8
Translation difference on cash and cash equivalents – – 0.1
Net change in cash and cash equivalents -0.4 1.0 -0.5
Cash and cash equivalents at the end of the period 0.9 2.8 1.4

 

KEY FINANCIAL FIGURES      
  1-3/11 1-3/10 1-12/10
Interest-bearing debt, (EUR million) 191.5 214.4 177.9
Net debt, (EUR million) 190.6 211.7 176.6
Invested capital (EUR million), end of period 507.9 523.7 495.6
Return on invested capital (ROI), % 1) 9.3% 5.8% 8.6%
Gearing, % 60.2% 68.4% 55.6%
Equity ratio, % 47.5% 46.4% 48.0%
Personnel, average 3 024 3014 3 043
Personnel, end of period 3 045 3047 3 048
Gross investments in non-current assets (EUR million) 31.9 12.5 62.0
Gross investments, % of net sales 23.7% 11.2% 11.7%
       
1) The figures are calculated on a rolling twelve month basis.    

 

SHARE RELATED KEY FIGURES      
       
  1-3/11 1-3/10 1-12/10
Earnings per share (EPS) weighted average, basic and diluted, EUR 0.00 -0.05 0.13
Equity per share, end of period, basic and diluted, EUR 2.92 2.85 2.93
       
Number of outstanding shares (weighted average), basic and diluted 108 208 725 108 697 328 108 575 291
Number of outstanding shares (end of period), basic and diluted 108 027 136 108 697 328 108 304 136
             

 

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) 1-3/11 1-3/10 1-12/10
Finland      
– Net sales (external) 29.2 27.9 135.2
– Inter-segment sales 1.1 0.2 1.8
Sweden      
– Net sales (external) 41.0 29.3 144.5
– Inter-segment sales 0.3 0.1 0.7
Norway      
– Net sales (external) 32.4 28.3 113.7
– Inter-segment sales 0.2 0.1 0.7
Denmark      
– Net sales (external) 8.2 7.7 32.9
– Inter-segment sales 0.2 0.5 2.7
Europe East      
– Net sales (external) 9.3 6.6 39.5
– Inter-segment sales 0.1 0.9 3.2
Europe Central      
– Net sales (external) 14.3 11.8 65.4
– Inter-segment sales 0.1 0.3 1.2
Elimination of sales between segments -1.9 -2.0 -10.2
Net sales, total 134.4 111.5 531.3
       
Other operating income 0.3 0.3 1.6

 

EBIT      
       
(EUR million) 1-3/11 1-3/10 1-12/10
Finland 1.3 -0.2 13.7
% of net sales 4.4% -0.8% 10.0%
Sweden 6.1 2.6 23.3
% of net sales 14.9% 8.8% 16.1%
Norway 0.4 -0.4 2.3
% of net sales 1.2% -1.6% 2.0%
Denmark -1.3 -0.6 -2.2
% of net sales -15.0% -7.8% -6.2%
Europe East -1.7 -2.4 -3.5
% of net sales -17.7% -32.2% -8.3%
Europe Central -1.2 -2.6 0.8
% of net sales -8.2% -21.8% 1.2%
Net items not allocated to operating segments -1.1 -1.8 -4.7
Group EBIT 2.7 -5.6 29.7
% of net sales 2.0% -5.0% 5.6%

 

Depreciation and amortisation    
       
(EUR million) 1-3/11 1-3/10 1-12/10
Finland 5.3 4.9 20.0
Sweden 5.8 4.6 20.7
Norway 4.7 4.5 18.3
Denmark 1.7 1.7 6.9
Europe East 3.3 3.4 15.2
Europe Central 4.2 4.0 17.0
Unallocated items and eliminations -0.1 -0.1 -0.3
Total 24.9 23.1 97.7

 

Reconciliation of Group EBIT to result before taxes (EBT)
       
(EUR million) 1-3/11 1-3/10 1-12/10
Group EBIT 2.7 -5.6 29.7
Unallocated items:      
Financial income 2.1 6.1 13.8
Financial expenses -5.0 -6.5 -22.7
       
Result before taxes (EBT) -0.2 -6.0 20.9

 

Capital expenditure      
       
(EUR million) 1-3/11 1-3/10 1-12/10
Finland 4.4 1.2 17.2
Sweden 13.2 7.6 30.3
Norway 4.7 3.7 11.5
Denmark 4.2 0.1 1.4
Europe East 3.1 0.5 4.3
Europe Central 3.8 0.9 7.4
Unallocated items and eliminations -1.4 -1.6 -10.2
Total 31.9 12.5 62.0

 

Assets allocated to segments      
       
(EUR million) 1-3/11 1-3/10 1-12/10
Finland 128.3 127.7 124.6
Sweden 159.9 148.6 155.4
Norway 144.5 143.5 141.8
Denmark 44.3 46.5 42.4
Europe East 90.4 101.1 91.5
Europe Central 112.1 123.1 114.2
Unallocated items and eliminations -13.4 -23.3 -8.6
Total 666.1 667.2 661.3

 

         
Changes in non-current assets      
         
(EUR 1 000) 31.3.2011 31.3.2010 31.12.2010
OPENING BALANCE 531 229 549 173 549 173
Depreciation and amortisation -24 933 -23 115 -97 716
Additions:      
  Machinery&Equipment 29 650 7 517 52 668
  Other Additions 2 236 4 957 10 633
         
Disposals (sales) -1 570 -3 051 -8 224
Other*   540 18 090 24 695
CLOSING BALANCE 537 153 553 571 531 229
         
Non-current assets held for sale – 370 –
         
         
* Other includes translation differences, reclassifications  
 and changes in estimated consideration for acquisitions  

 

CONTINGENT LIABILITIES      
       
(EUR million) 31.3.2011 31.3.2010 31.12.2010
Suretyships 3.2 2.8 3.2
       
Committed investments 18.0 3.9 0.5
       
       
Non-cancellable minimum future operating lease payments 143.0 160.3 143.4
Non-cancellable minimum future finance lease payments 0.2 0.6 0.3
Finance lease debt in the balance sheet -0.2 -0.6 -0.3
Non-cancellable minimum future lease payments off-balance sheet 143.0 160.3 143.4
       
       
Obligations arising from derivative instruments      
       
Interest rate derivatives      
Nominal value of underlying object 143.0 195.1 143.2
Fair value of the derivative instruments -0.9 -2.2 -2.4
       
Foreign currency derivatives      
Nominal value of underlying object 54.4 – 40.4
Fair value of the derivative instruments -0.3 – 0.1
 
 		      

 

                 
DEFINITION OF KEY FINANCIAL FIGURES    
                 
Return on equity (ROE), %: (Net result x 100) / Total equity (average over the financial period)
                 
Return on invested capital (ROI), %: ((Result before taxes + interest and other financial expenses) x 100) / (Total assets – non-interest bearing debt (average over the financial period))
                 
Equity ratio, %: ((Total equity + non-controlling interest) x 100) / (Total assets – advances received)  
                 
Earnings per share (EPS), EUR: (Net result +/- non-controlling interest’s share of net result) / (Average number of shares, adjusted for share issues, during the financial period)
                 
Shareholders’ equity per share, EUR: (Equity belonging to the parent company’s shareholders) / (Number of shares, adjusted for share issues, on reporting date)
 
                 
Payout ratio, %: (Dividend per share x 100)/(Earnings per share)
                 
Net debt: Interest-bearing debt – cash and bank receivables, and financial securities
                 
Gearing: (Net debt x 100)/(Total equity)
                 
Dividend per share: Dividend paid /
Number of shares on the registration date for dividend distribution
                     

 

EXCHANGE RATES APPLIED              
  Average Average Average Closing Closing Closing
  rates rates rates rates rates rates
Currency 1-3/2011 1-3/2010 1-12/2010 31.3.2011 31.3.2010 31.12.2010
DKK 7.4549 7.4427 7.4472 7.4567 7.4447 7.4535
EEK/EUR 1.0000 15.6466 15.6466 1.0000 15.6466 15.6466
HUF 272.4568 268.6800 275.3567 265.7200 265.7500 277.9500
LTL 3.4528 3.4528 3.4528 3.4528 3.4528 3.4528
LVL 0.7048 0.7087 0.7087 0.7095 0.7085 0.7094
NOK 7.8233 8.1052 8.0060 7.8330 8.0135 7.8000
PLN 3.9435 3.9918 3.9950 4.0106 3.8673 3.9750
RUB 40.0029 41.3271 40.2780 40.2850 39.6950 40.8200
SEK 8.8623 9.9574 9.5469 8.9329 9.7135 8.9655
UAH 10.8845 11.0830 10.6024 11.3088 10.6781 10.5775
CZK 24.3730 25.8843 25.2939 24.5430 25.4400 25.0610
                       

 

QUARTERLY SEGMENT INFORMATION          
             
Net sales Q1 2011 Full year
2010		 Q4 2010 Q3 2010 Q2 2010 Q1 2010
(EUR million)            
Finland 30.2 136.9 35.2 37.5 36.1 28.1
Sweden 41.3 145.2 44.9 36.1 34.9 29.4
Norway 32.6 114.4 31.1 27.6 27.4 28.4
Denmark 8.4 35.6 9.5 9.0 9.0 8.1
Europe East 9.4 42.7 13.4 12.3 9.5 7.5
Europe Central 14.4 66.6 18.9 19.7 15.9 12.1
Elimination of sales between segments -1.9 -10.2 -3.0 -1.2 -4.0 -2.0
Net sales, total 134.4 531.3 150.1 140.9 128.7 111.5

 

 

EBIT            
  Q1
2011		 Full
year
2010		 Q4
2010		 Q3
2010		 Q2
2010		 Q1
2010
(EUR million and % of net sales)            
Finland 1.3 13.7 2.9 7.1 4.0 -0.2
% of net sales 4.4% 10.0% 8.1% 18.8% 11.1% -0.8%
Sweden 6.1 23.3 8.3 7.4 5.0 2.6
% of net sales 14.9% 16.1% 18.5% 20.6% 14.4% 8.8%
Norway 0.4 2.3 0.1 1.7 1.0 -0.4
% of net sales 1.2% 2.0% 0.3% 6.1% 3.7% -1.6%
Denmark -1.3 -2.2 -0.7 -0.2 -0.7 -0.6
% of net sales -15.0% -6.2% -7.8% -1.9% -7.4% -7.8%
Europe East -1.7 -3.5 1.1 -0.7 -1.6 -2.4
% of net sales -17.7% -8.3% 8.5% -5.7% -16.5% -32.2%
Europe Central -1.2 0.8 1.0 2.2 0.3 -2.6
% of net sales -8.2% 1.2% 5.1% 11.2% 1.9% -21.8%
Costs not allocated to segments -1.1 -4.7 -1.4 -0.9 -0.7 -1.8
Group EBIT 2.7 29.7 11.3 16.6 7.4 -5.6
% of net sales 2.0% 5.6% 7.5% 11.8% 5.8% -5.0% 

 

ANALYST AND PRESS BRIEFING

A briefing for investment analysts and the press will be arranged on Tuesday 10 May 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 Tuesday 10 May 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 894611. 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. Times are given in Finnish time (EET).

 

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, 10 May 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 Ltd.

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 382 locations in 13 countries in Northern, Central and Eastern Europe. Ramirent is listed on the NASDAQ OMX Helsinki Ltd.