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2017-11-30 08:00:00 CET 2017-11-30 08:00:04 CET REGLAMENTUOJAMA INFORMACIJA Ramirent - Other information disclosed according to the rules of the ExchangeRamirent’s updated strategy prioritizes capital efficient profitable growth in the core equipment rental businessRAMIRENT PLC STOCK EXCHANGE RELEASE NOVEMBER 30, 2017 at 9:00 EET
Ramirent launches its new strategy and sets new financial targets for 2018-2020 ahead of the Capital Markets Day, which will be held tomorrow on December 1, 2017 in Helsinki, Finland. With the new strategy, Ramirent aims to focus on capital efficient profitable growth in its core business – general equipment rental and related services. Consequently, Ramirent is exploring strategic options for its Temporary Space business, including a potential sale. Due to unsatisfactory profitability development in Denmark, Ramirent will restructure the Danish customer center network and record restructuring charges of approximately EUR 2 million in the fourth quarter of 2017. The objective of the Group strategy for 2018-2020 is to drive further profitability improvement by having a disciplined focus on profitable businesses, performance management, process excellence, capital efficiency and people leadership. “The core equipment rental market continues to offer us opportunities to create shareholder value. Our geographies offer us a EUR 4 billion growing rental market, where share gains and rental penetration increases are possible when we sharpen our value propositions and improve our operational execution. We see growth opportunities particularly within small and medium-sized businesses, and in Baltics and Europe Central, where we aim to focus even more in the coming years. We also see great opportunities for improving operational performance in our supply chain and aim to raise the service levels of our industry to a new benchmark by developing the rental industry’s best performing supply chain. The value proposition for renting instead of owning can be further strengthened by digitalization and making a step-change improvement in service-levels,” says Tapio Kolunsarka, President and CEO of Ramirent. “Our strategy is to grow capital-efficiently in our core business with disciplined development of rental and related service businesses. This is why we have initiated a process to assess strategic options, including a potential sale of our Temporary Space business.” “While remaining a wide-range rental equipment supplier, we strongly believe that focusing on product lines and existing geographies, where we can earn ROCE clearly above the cost of capital, is the best way to create sustainable shareholder value in our sector,” Kolunsarka continues. “Going forward we intensify our efforts to improve low performing parts of the business and will restructure Denmark’s customer center network and book restructuring charges of approximately EUR 2 million for the fourth quarter 2017 in the segment, ” Kolunsarka concludes.
Key building blocks of the Capital Efficient Profitable Growth in the Core strategy
Becoming the large customer’s supplier of choice
Building the industry’s best performing supply chain
Tightening performance management of low-performing units
Growing capital efficiently
Becoming a great place to work by focusing on leadership and safety New financial targets
Ramirent’s guidance for 2017 unchanged
Capital Markets Day tomorrow FURTHER INFORMATION:
Pierre Brorsson, EVP and CFO, tel. +46 8 624 9541,
RAMIRENT is a leading rental equipment group combining the best equipment, services and know-how into rental solutions that simplify customer’s business. Ramirent serves a broad range of customer sectors including construction, industry, services, the public sector and households. In 2016, Ramirent Group sales totaled EUR 665 million. The Group has 2,771 employees in 298 customer centers in 10 countries in Europe. Ramirent is listed on the NASDAQ Helsinki (RMR1V). Ramirent – More than machines®. DISTRIBUTION: NASDAQ Helsinki, Main news media, www.ramirent.com |
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