Capital Market Day 2009 Finland and Europe East

Transcription

1 Capital Market Day 2009 Finland and Europe East Kari Aulasmaa, SVP, East 1 CMD Ramirent

2 Deriving synergies between Finland and Europe East Enhanced fleet utilisation Cross-border planning of fleet investments Higher operational efficiency More added-value for key accounts Optimising services for international customers Cross border project co-operation Sharing know-how and contacts Sharing of best practices Operational practices, fleet structure, customer base Scale benefits in procurement Business know-how and rental market understanding to young markets Common operational model Rami-platform Developing common training programs Operational excellence synergies

3 Capital Market Day 2009 Finland Kari Aulasmaa, SVP, Ramirent East 3 CMD Ramirent

4 Finland executive summary Largest and most versatile rental equipment and service offering #1 market position in Finland Track record of strong organic growth and acquisitions Compelling end market mix with nonconstruction business making up for approximately 50% of sales The leading equipment rental one-stop-shop in Finland

5 Finland overview The leading equipment rental company in Finland Continue to realise market share gains Well diversified end markets with approx customers Best-in-class customer service standards Well maintained fleet of over 50,000 rental items Highly experienced management Q1 09 Sales EUR 28.7 (33.4) million EBIT of EUR 0.9 (6.5) million EBIT-margin 3.1 (19.6) % 87 rental outlets 655 employees Part of Group sales Revenue breakdown by customer 23% Construction Industry 50% Other services Households Public sector Focus on rental activity with diversified customer base

6 Finland construction output outlook Construction volume MEUR % change in real terms F 2010F 2011F Euroconstruct (June 2009) 29, % -8.0% -2.3% Statistics Finland, RT(April 2009) -13.0% -6.0% n.a. Construction Sector Output in 2008 Total 29,5 bill. Building Construction 24,1 bill. Civil Engineering 5.5 bill. 82% Repair and maintenance 9,4 bill. Residential buildings 4,9 bill. Other buildings Maintenance 1,5 bill 4,5 bill. Investment 4,0 bill. 18% Residential buildings 5,8 bill. New building 14,7 bill. Other buildings 8,9 bill. Source: Statistics Finland, VTT

7 Impact of slowdown on end markets Construction Non-construction Significant downturn: Residential construction Slowdown less pronounced than in construction Non-residential Industrial maintance activity stable Infrastructure stable Shipyard orderbook until 2010 Growing renovation activity Public sector activity stable Rental prices under pressure: Increased price competition in certain product areas Rental prices under pressure: Prices stable Increased renovation & maintenance activity supporting price levels

8 Significant cost reduction activities Area Action Target Employees Fleet Costs Accounts receivables Reduction of personnel expenses Reduction of leased equipment Scrapping and sales of fleet Optimising outlet network Reducing use of external work force Reduction in number of supplier Other Intensified credit control Rightsizing headcount to current business level Downsizing the fleet Rightsizing the network Maintain good situation in changing environment

9 Finland rightsizing the business Sep 2008 Dec 2008 Jan 2009 Feb 2009 Mar 2009 Number of employees Sep 2008 Dec 2008 Jan 2009 Feb 2009 Mar 2009 Number of outlets Number of employees reduced by 75 persons since Q depots have been closed The positive impact of cost saving actions to materialize mainly in H2 09

10 Rental industry growth in Finland Attractive and growing industry Finland rental penetration trend Growth drivers are development of value added services, industrial activity and increased rental penetration Rental as standard activity is becoming more common Outsourcing trend increasing 70 % 60 % 50 % 40 % 30 % 20 % 10 % 0 % Europe avg. Finland Denmark Sweden UK Source: ERA 2008 report Size of Finland s equipment rental market Finland rental market MEUR Ramirent MEUR Cramo Others Telinekataja Pekkaniska Continued opportunity for growth and consolidation

11 Strategic priorities in Finland Long-term value enhancing strategy Developing the product and service offering Developing all-inclusive related service to different customer segments Developing the business model Widening the customer base Broad market presence Increased focus on renovation, public sector and industrial customers Maintain nationwide outlet network Fleet management Focus on standardising fleet between countries Grow the business Focus on organic growth M&A activity Developing sales forces to continue to grow also into new customer sectors Monitoring opportunities for outsourcing in different sectors

12 Nationwide footprint in Finland Largest network with 87 locations Easy customer accessibility Large service centers with comprehensive offering in all large cities and logistic hubs Specialized equipment centers for cranes and site modules, heavy equipment, scaffolding and formworks 12 CMD Ramirent

13 Diversified end markets Industrial maintenance Non-residential construction Residential ~26% of revenues Main customers: - Shipbuilding, mining, power generation, Pulp& Paper, steel industry, chemical etc. Main: STX shipyards, Storaenso, ABB, Outokumpu ~31% of revenues Main Customers: -National, regional, local general and specialty contractors Main projects: commercial, institutional, infrastructure, power & energy ~12% of revenues Main Customers: - General contractors - Sub-contractors Main projects: New constructions and remodeling Diversification is toward greater industrial concentration Note: figures are a company estimate

14 Non-residential construction Case example: På Gränsen Rajalla, shopping centre Shopping centre in Swedish border in Tornio Investor Pension insurance company VARMA Design&Build constructor NCC Rakennus Oy Project value 86 MEUR, size m2 and m3 Construction period 19 months Deliveries with full offering: Tower cranes and hoists Side modules and containers Formwork Access platforms Heavy equipment Power & heating Small machinery Site services 14 CMD Ramirent

15 Finland s largest product groups are light lifting equipment, scaffolding and lifts Light Equipment Scaffolding Lifts & Hoists Power & Heating Modules Tower Cranes Formworks Heavy Equipment

16 Expanding the value chain through added value services Construction machinery planning for projects Education and training programs for products Working conditions and safety for projects Temperature Humidity Dust control Electricity Lightning Safety products and services Security products and services Refuel and maintenance services Planning, transportation and installation services 16 CMD Ramirent

17 Finland Opportunities and challenges Opportunities Machinery outsourcing development Increased equipment usage Increased penetration Product and service development Growing demand of all-inclusive solutions Stricter safety requirements Green issues Challenges Extended recession Recruitment of skilled employees Competence in relation to changing customer needs Optimising the fleet structure 17 CMD Ramirent

18 Q&A Photo: Dan Kullberg