North Central Europe ANNA HYVÖNEN, EVP, NORTH CENTRAL EUROPE 1 DECEMBER, 2015, CAPITAL MARKETS DAY 2015

Transcription

1 North Central Europe ANNA HYVÖNEN, EVP, NORTH CENTRAL EUROPE 1 DECEMBER, 2015, CAPITAL MARKETS DAY 2015

2 SHARE OF GROUP NET SALES 1-9/2015 MARKET POSITION AND NET SALES (MEUR) Finland 25% Europe East (The Baltics) 5% Europe Central 9% # / /2015 SHARE OF GROUP EBITA 1-9/2015 Finland 27% / /2015 # 2 # 1 # 1 Europe East 10% 1) Europe Central 5% # 2 # 1 # / / ) Includes Ramirent's 50% share of the consolidated net result from Joint Venture Fortrent

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4 Finland NET SALES BY BUSINESS AREA 1-9/2015 NET SALES BY CUSTOMER SECTOR 1-9/2015 Public sector 2% Private 2% Other 3% Solutions 39% General Rental 61% Service & Retail 19% Construction 53% Industrial 20% KEY FIGURES NET SALES (MEUR) AND PROFITABILITY Finland Change % Net sales % EBITA % ) % of net sales 12.5% 15.1% 13.6% 1) Capex % 35.8 Capital employed % ROCE (%) 13.7% 17.9% 15.6% % 12.5% 25% 20% 15% 10% 5% Personnel (FTE) % 497 Customer centres % /2015 Net sales EBITA margin % ROCE % 0% 4 1/12/2015 Capital Markets Day ) EBITA excluding non recurring items was EUR 22.3 million or 14.6% of net sales in January December The non recurring items included EUR 1.5 million of restructuring costs and asset write-downs booked in the fourth quarter of 2014.

5 ACHIEVEMENTS SINCE CAPITAL MARKETS DAY 2013 Finland Proactive sales managementcustomer proximity Improvement in NPS in General Rental and Solutions business Growth in Solutions through wide service portfolio - renovation solutions - site services Strengthened position and growth among small & medium sized construction companies Increased safety focus 40% lower accident frequency rate than in 2013 More flexible operations - Centralised maintenance & repair of Light machinery - Optimised internal cycle-times and operational costs for lifts Increased availability of the fleet Customer centre network adjusted to prevailing market conditions Collective agreement with labour union to add flexibility in operations and save costs Fleet outsourcing agreement with Hartela and Empower Widest offering of telehandlers through acquisition of leading Telehandler business from Kurko-Koponen Strengthened position in Eastern Finland through acquisition of Savonlinnan Rakennuskonevuokraamo 5

6 Finland TOTAL CONSTRUCTION OUTPUT ESTIMATES 4% 3% 2% 1% 0% -1% -2% -1.0% 2015E 2.0% 2016E CONSTRUCTION OUTPUT BY SECTOR (INDEX) E 2016E New residential construction New non-residential construction Renovation Infrastructure construction COMPETITIVE LANDSCAPE Two large players with high market share and nationwide network Ramirent holds the widest range of products, services and solutions In-house machinery operators in the market Tough pricing environment in Source: Finnish Construction Industry 10/2015

7 Finland Geographical growth area Construction in southern Finland Industrial sectors in western and northern parts of Finland Customer centre on-site in major projects Capital area provides growth opportunities Renovation Exceeds new construction volume Energy Nuclear power plant projects Shipbuilding projects Wind power Small and medium sized projects Public sector High demand for temporary space solutions 7

8 Finland Hospital project high standards set for construction in dry environment Major project sqm2, total construction project size approx. EUR 150 million Ready for operations in 2016 Fully sheltered construction site with wide span weather covers and scaffolding Total service scope from Ramirent incl. design, logistics, supervision, installation and 24/7 service Ramirent s ability to provide total weather shelter solution Enabled the customer to fulfill end customer requirements Improved safety and working conditions during the project execution 8

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10 The Baltics NET SALES BY BUSINESS AREA 1-9/2015 (THE BALTICS) Solutions 10% NET SALES BY CUSTOMER SECTOR 1-9/2015 (THE BALTICS) Private Public 4% Other 2% sector 2% General Rental 90% Service & Retail 31% Construction 49% KEY FIGURES Europe East 1) Change 2014 Industrial 12% NET SALES (MEUR) AND PROFITABILITY (THE BALTICS) 40 25% Net sales % 33.9 EBITA % 6.7 % of net sales 20.4% 18.5% 19.6% Capex % % % 20% 15% 10% Capital employed % 46.6 ROCE (%) 12.6% 10.3% 11.3% 10 5% Personnel (FTE) % 240 Customer centres % /2015 Net sales EBITA margin % ROCE % 0% 10 1/12/2015 Capital Markets Day ) Includes Ramirent's 50% share of the consolidated net result from Joint Venture Fortrent

11 ACHIEVEMENTS SINCE CAPITAL MARKETS DAY 2013 The Baltics Improved customer service NPS improvement Strengthened sales management Solutions introduced to the Baltic equipment rental market Increased rental-related services offering to meet strong demand Strong efficiency and cost control Increased safety focus Centralised repair & maintenance operations in Lifts, Heavy and Light Optimised availability Sustainable profitable growth Common management structure Common fleet management optimising fleet relocation across the segment Centralised repair and maintenance for all countries in the segment Common approach in Sales and marketing 11

12 The Baltics Markets growing in all capital city regions (Tallinn, Riga and Vilnius) Stable market situation in Estonia and Lithuania while demand is weakening in Latvia due to slowdown in the construction sector Industrial projects in Estonia Geographical growth area Renovation & Infrastructure construction EU funding will improve market situation in 2016 Energy Renovation of oil refineries and power plants Public sector Temporary space solutions especially for day care centres and defence forces 12

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14 Europe Central NET SALES BY BUSINESS AREA 1-9/2015 NET SALES BY CUSTOMER SECTOR 1-9/2015 Public sector 4% Private 5% Other 3% Solutions 27% Retail & Services 4% General Rental 73% Industrial 24% Construction 60% KEY FIGURES NET SALES (MEUR) AND PROFITABILITY Europe Central Change % Net sales % EBITA % 1.7 1) 60 10% % of net sales 6.1% 3.0% 3.2% 1) Capex % 7.8 Capital employed % % 5.2% % 0% ROCE (%) 5.2% 1.7% 2.6% 10 Personnel (FTE) % 477 Customer centres % /2015 Net sales EBITA margin % ROCE % -5% 14 1/12/2015 Capital Markets Day ) EBITA excluding non recurring items was EUR 2.8 million or 5.3% of net sales in January December The non recurring items included EUR 1.1 million of restructuring costs and asset write-downs booked in the fourth quarter of 2014.

15 ACHIEVEMENTS SINCE CAPITAL MARKETS DAY 2013 Europe Central Increased proactiveness in sales management and General Rental Strengthened customer proximity NPS improvement Enlarged Solutions business and customer centres on-site at large projects Improved market position among small & medium sized construction companies Active work to develop HSEQ issues Centralisation of repair & maintenance operations to Hubs Optimised internal cycletimes and operational costs for fleet Internal fleet transfers to optimise utilisation rates New common organisation structure implemented Common management structure covering all countries in the segment delivering synergies Extended network in growth cities (Warsaw, Prague, Poznan and Wroclaw) Renewal of fleet to capture growth opportunities in the market 15

16 Europe Central Customer needed office, changing rooms and sanitary spaces for workers on site Mostly for subcontractors of main contractors (Mostostal, Polimex and Alstom) Modular buildings on project site - totally 750 units at peak season Modules delivered including services such as cleaning, furniture, power, internet access etc. Flexible access to machinery through customer centre on site supporting all contractors Less coordination needed by main contractors through single supplier for modules 16 1/12/2015 Capital Markets Day 2015

17 Europe Central Geographical growth area Industrial projects in Northern and Southern Poland Construction projects in Central Poland The large cities in the Czech Republic and Slovakia Energy sector - Several power plant projects throughout Poland Industrial and logistics centres several ongoing construction projects Infrastructure construction Strong demand in all Europe Central countries, supported by EU funding Ship building projects in Northern Poland 17

18 The Baltics & Europe Central TOTAL CONSTRUCTION OUTPUT ESTIMATES 10% 9.7% 8% 7.8% 6% 4% 4.3% 3.7% 4.4% 2% 2.1% 1.6% 0% TOTAL CONSTRUCTION OUTPUT (INDEX) Poland The Baltics -2% -1.8% 2015E 2016E The Baltics Poland Slovakia The Czech Republic E 2016E COMPETITIVE LANDSCAPE Ramirent is the market leader in the Baltics and Europe Central Ramirent has the broadest fleet and the most extensive service offering in both segments Mainly small local competitors in the Baltics while some Western international companies operate in the Polish market Less competition in the Czech Republic and Slovakia Stable price level in the Baltics, increasing price levels in Europe Central 18 Source: Euroconstruct 6/2015

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20 North Central Europe Customer service upgrade Improve pricing management Develop sales channels Organic growth by extending the network Improving customer experience Establishing project customer centres Mobile customer centres to add flexibility Improve performance management Develop services for industry sector Increase market share to improve profitability Ensure fleet quality through efficient maintenance and repair Build up the Solutions organisation and competences Increase solution sales volumes in all countries Increase the business volumes and customer awareness Optimising the fleet capacity Early involvement on projects Build up competences for large complex solution projects Grow in preschools and schools as well as bigger construction & industrial projects Implement Hub strategy Continue to renew fleet Wellbeing and safety in our working environment Sharing of equipment across market area Capture economies of scale in sourcing Competence development and resource sharing 20

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