2016-02-11 08:00:07 CET
2016-02-11 08:00:07 CET
REGULATED INFORMATION
Ramirent - Financial Statement Release
Ramirent’s Financial Statements Bulletin for 2015: Strong fourth quarter sales growth, margin remained under pressure
RAMIRENT PLC COMPANY ANNOUNCEMENT 11 FEBRUARY 2016 at EET
9:00 a.m.
Vantaa, Finland, 2016-02-11 08:00 CET (GLOBE NEWSWIRE) --
Note! Figures in brackets, unless otherwise indicated, refer to the
corresponding period a year earlier.
PERFORMANCE OCTOBER–DECEMBER 2015
-- Net sales EUR 170.5 (160.7) million, up by 6.1% or 7.9% at comparable
exchange rates
-- EBITDA EUR 43.7 (40.0) million or 25.7% (24.9%) of net sales
-- EBITA EUR 16.8 (14.5) million or 9.9% (9.0%) of net sales
-- Gross capital expenditure EUR 42.0 (19.0) million or 24.6% (11.8%) of net
sales
-- Cash flow after investments EUR 5.3 (32.6) million
-- Result for the period EUR 11.5 (4.5) million and EPS EUR 0.11 (0.04)
PERFORMANCE JANUARY–DECEMBER 2015
-- Net sales EUR 635.6 (613.5) million, up by 3.6% or 6.0% at comparable
exchange rates
-- EBITDA EUR 168.1 (167.9) million or 26.4% (27.4%) of net sales
-- EBITA EUR 66.8 (65.8) million or 10.5% (10.7%) of net sales
-- EBITA excl. non-recurring items EUR 63.4 (71.5) million or 10.0% (11.7%) of
net sales
-- Result for the period EUR 39.0 (32.6) million and EPS EUR 0.36 (0.30)
-- Return on invested capital (ROI) 12.3% (12.2%)
-- Return on equity (ROE) 12.1% (9.4%)
-- Gross capital expenditure EUR 139.2 (144.6) million or 21.9% (23.6%) of net
sales
-- Cash flow after investments EUR
−
6.3 (21.8) million
-- Net debt EUR 280.9 (227.1) million and net debt to EBITDA 1.7x (1.4x)
DIVIDEND PROPOSAL
The Board of Directors proposes to the Annual General Meeting that a dividend
of EUR 0.40 (0.40) per share be paid for the financial year 2015. The proposed
dividend represents a 111% (132%) payout ratio for 2015 which is above
Ramirent’s long-term financial target to payout at least 40% of net profit in
dividend. The Board of Directors has decided not to utilise the authorisation
received from the Annual General Meeting 2015 to pay an additional dividend
based on the adopted financial statements for 2014.
RAMIRENT OUTLOOK FOR FULL YEAR 2016
In 2016, Ramirent’s net sales in local currencies and EBITA margin are expected
to increase from the level in 2015.
KEY FIGURES 10–12/ 10–12/ Change 1–12/1 1–12/1 Change
15 14 5 4
--------------------------------------------------------------------------------
(MEUR)
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Net sales 170.5 160.7 6.1% 635.6 613.5 3.6%
--------------------------------------------------------------------------------
EBITDA 43.7 40.0 9.2% 168.1 167.9 0.1%
--------------------------------------------------------------------------------
% of net sales 25.7% 24.9% 26.4% 27.4%
--------------------------------------------------------------------------------
EBITA excluding non-recurring 16.8 18.2 −7.7% 63.4 71.5 −11.3%
items
--------------------------------------------------------------------------------
% of net sales 9.9% 11.4% 10.0% 11.7%
--------------------------------------------------------------------------------
EBITA 16.8 14.5 15.7% 66.8 65.8 1.4%
--------------------------------------------------------------------------------
% of net sales 9.9% 9.0% 10.5% 10.7%
--------------------------------------------------------------------------------
EBIT 14.6 12.5 16.4% 57.9 58.1 −0.3%
--------------------------------------------------------------------------------
% of net sales 8.5% 7.8% 9.1% 9.5%
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EBT 12.7 6.4 98.0% 46.9 42.5 10.4%
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% of net sales 7.5% 4.0% 7.4% 6.9%
--------------------------------------------------------------------------------
Result for the period 11.5 4.5 155.4% 39.0 32.6 19.4%
attributable to the owners of
the parent company
--------------------------------------------------------------------------------
Earnings per share (EPS), (basic 0.11 0.04 155.3% 0.36 0.30 19.4%
and diluted), EUR
--------------------------------------------------------------------------------
Gross capital expenditure on 42.0 19.0 121.4% 139.2 144.6 −3.7%
non-current assets
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Gross capital expenditure, % of 24.6% 11.8% 21.9% 23.6%
net sales
--------------------------------------------------------------------------------
Cash flow after investments 5.3 32.6 −83.6% −6.3 21.8 n/a
--------------------------------------------------------------------------------
Invested capital at the end of 600.5 555.2 8.2%
period
--------------------------------------------------------------------------------
Return on invested capital 12.3% 12.2%
(ROI),%
--------------------------------------------------------------------------------
Return on equity (ROE),% 12.1% 9.4%
--------------------------------------------------------------------------------
Net debt 280.9 227.1 23.7%
--------------------------------------------------------------------------------
Net debt to EBITDA ratio 1.7x 1.4x 23.6%
--------------------------------------------------------------------------------
Gearing,% 88.0% 69.9%
--------------------------------------------------------------------------------
Equity ratio,% 41.4% 43.7%
--------------------------------------------------------------------------------
Personnel at end of period (FTE) 2,654 2,576 3.0%
--------------------------------------------------------------------------------
COMMENTS FROM CEO MAGNUS ROSÉN:
“Ramirent Group’s fourth–quarter sales increased by 6.1% or 7.9% at comparable
exchange rates driven by strong service sales and good demand in General Rental
in most of our markets. Group’s fourth–quarter EBITA increased by 15.7% to EUR
16.8 (14.5) million, representing an EBITA margin of 9.9% (9.0%).
Full-year 2015 net sales grew by 3.6%, or 6.0% at comparable exchange rates, to
EUR 635.6 (613.5) million. Full-year 2015 EBITA amounted to EUR 66.8 (65.8)
million, representing an EBITA margin of 10.5% (10.7%). A higher relative share
of sales of services in the business mix, price pressure in Finland and Norway,
as well as internal reorganisations hampered our profitability in 2015. Return
on equity (ROE) improved to 12.1% (9.4%) in 2015. We have harmonised our
operational model “One Ramirent” to be more efficient and flexible, and we will
continue to focus on controlling costs and improving profitability.
In the fourth quarter, we saw in Finland both good growth and profitability
despite a challenging market. In Sweden growth continued fuelled by excellent
market conditions, however profitability was still burdened by organisational
development costs. In Denmark, sales grew and profitability continued to
improve based on successful turn-around of our operations and an improved
underlying market. In Norway, our performance weakened further and the new
management is executing a turnaround plan to adapt to the market which has
weakened by the slowdown in the oil industry. In Europe Central, all markets
improved both in terms of good sales growth and improved profitability. Also
our performance in Baltics was solid, with a small growth and a good
profitability level maintained.
In the fourth-quarter, we increased capital expenditure to EUR 42.0 (19.0)
million to capture growth opportunities. To drive growth and profitability, we
updated our long-term financial targets and strategic focus themes at the
Capital Markets Day in December. We are targeting further growth by developing
our group business mix through three distinct business areas: General Rental,
Solutions and Temporary Space. Ramirent sees further opportunities to support
profitable growth by realising the synergies of the “One Ramirent” platform as
well as by optimising the flow, efficiency and service level in its fleet
management and supply chain. Based on our solid financial position, Ramirent
can also accelerate growth with selected outsourcing transactions and
acquisitions.
Our new financial targets were adjusted to be in line with the industry level
and ensure our competitiveness to pursue profitable growth in all business
areas, whilst keeping a balanced risk-level.
In 2016, we expect to see stable and fair overall market conditions yet varying
between the different geographical markets. I am therefore cautiously
optimistic as we set out to pursue profitable growth in 2016 backed by
accelerated capital expenditure, more common processes in Ramirent, a strong
financial position, strong positions in our markets, and a highly capable and
committed team.”
MARKET OUTLOOK 2016
Ramirent expects market conditions in the Finnish equipment rental market to be
balanced in 2016. According to a forecast published in December 2015, Forecon
expects the Finnish equipment rental market to grow by 3.0% in 2016.
Increasing residential construction and renovation are expected to support
demand in General Rental while activity within infrastructure construction will
remain sluggish. Ongoing large commercial building and hospital projects are
expected to support demand in Solutions. Renovation is estimated to exceed the
value of new construction also in 2016. According to a forecast published by
Euroconstruct in December 2015, the Finnish construction output is expected to
increase by 3.2% in 2016. In the industrial sector, demand for General Rental
and Solutions is estimated to recover driven by projects in the energy,
shipyard and pulp and paper sectors. The Confederation of Finnish Industries
(EK) expects full-year industrial investments to grow by 12.9% in 2016, mainly
due to projects in general manufacturing and in the energy sector.
Ramirent expects conditions in the Swedish equipment rental market to be
favourable in 2016. According to a forecast published by Euroconstruct in
December 2015, the Swedish construction market is expected to increase by 2.8%
in 2016. High activity in residential construction and large ongoing
infrastructure projects in Stockholm and Gothenburg are expected to support
demand both in General Rental and in Solutions in 2016. Renovation construction
is also expected to continue to increase driven by ageing building stock,
energy efficiency requirements and government grants. Commercial and industrial
construction projects are expected to support demand in Solutions. Market
conditions for the Temporary Space business are expected to be favourable based
on high demand from the public sector.
Ramirent expects market conditions for equipment rental to remain challenging
in Norway in 2016. Modest economic growth, low oil prices and soft building
construction activity continue to impact negatively on demand in General Rental
as well as in Solutions. According to a forecast published by Euroconstruct in
December 2015, the Norwegian construction market is expected to grow by 3.9% in
2016. However, the primary growth driver is infrastructure construction, while
residential and non-residential construction, which are the main drivers for
equipment rental, are estimated to remain close to the previous year’s level.
According to an estimate by Norwegian Petroleum Directorate, investments in the
oil and gas sector are estimated to decline by 10.0% in 2016. Ramirent expects
demand in Temporary Space to be modest in the oil and gas sector but to improve
in the public sector.
Ramirent expects the equipment rental market in Denmark to grow in 2016
supported by favourable activity in the construction sector. According to a
forecast published by Euroconstruct, the Danish construction market is
estimated to increase by 2.3% in 2016. In General Rental, demand is driven by
urbanisation and strong underlying demand from residential and infrastructure
construction. Market outlook in the industry sector remains positive as a
result of healthy economic growth and improved industrial confidence. Ramirent
expects demand in General Rental and Solutions to be supported by a large
programme to build new hospitals in Denmark. In Temporary Space, the need for
renovation of preschools, schools and healthcare centres supports demand in
2016.
Ramirent expects the overall demand in the Baltic equipment rental market to be
balanced in 2016. According to a forecast published by Euroconstruct in
December 2015, the total construction output in the Baltics is expected to
increase by 1.5% in 2016. Infrastructure construction is estimated to grow in
all Baltic countries supported by EU and public funding which will benefit
General Rental and Temporary Space business areas. Increasing non-residential
construction activity is expected to support demand in General Rental and in
Solutions. Residential construction is expected to remain close to the previous
year’s level in 2016.
The decline in the oil price has a negative impact on the economy and
construction activity in Russia. The volatility of the rouble and the Russian
financial market hinder economic growth in Russia. EU and US economic sanctions
against Russia due to the Ukrainian crisis remain in place, creating further
uncertainty over the development of the Russian economy. The weakened situation
in the construction market, in turn, affects the demand for equipment rental
and related services in Russia in 2016. According to the forecast published by
Euroconstruct in December 2015, the Russian construction market is expected to
decline by 2.6% in 2016. All construction sub-sectors, except infrastructure
construction, are forecast to decline in 2016. In Ukraine, the outlook remains
challenging.
Ramirent expects overall demand in Europe Central equipment rental markets to
be favourable in 2016. According to a forecast published by Euroconstruct in
December 2015, construction output in Europe Central is expected to grow by
5.8% in 2016. Demand in General Rental is expected to be fuelled by
construction and renovation of power plants, wind power projects as well as EU
funded infrastructure projects. Increasing activity especially in the
non-residential construction sector is expect to support demand in Solutions.
CORPORATE GOVERNANCE STATEMENT
Ramirent has issued a Corporate Governance Statement for financial year 2015.
The Corporate Governance Statement has been composed in accordance with
recommendation 51 of the new Corporate Governance Code. The Corporate
Governance Statement is issued as a separate report which is available in
Ramirent’s Financial Statements 2015 and on Ramirent’s web pages
www.ramirent.com.
ANNUAL GENERAL MEETING 2016
Ramirent Plc’s Annual General Meeting will be held in Scandic Marina Congress
Center, Fennia I, at the address of Katajanokanlaituri 6, 00160 Helsinki,
Finland on Thursday 17 March 2014 at 10.00 a.m. The stock exchange release to
convene the AGM 2016 will be published on the Company’s website 11 February
2016. Ramirent Plc’s Financial Statements will be published on the Company’s
website on 11 February 2016.
DISCLOSURE PROCEDURE
Ramirent follows the disclosure procedure enabled by Disclosure obligation of
the issuer (7/2013) published by the Finnish Financial Supervision Authority.
This stock exchange release is a summary of Ramirent Plc’s financial statements
bulletin 2015. The complete report is attached to this release in pdf format
and is also available on Ramirent’s website at www.ramirent.com.
ANALYST AND PRESS BRIEFING
A briefing for investment analysts and the press will be arranged 11 February,
2016 at 11:00 a.m. Finnish time at Ramirent Group headquarters, (visiting
address: Äyritie 16, 01510 Vantaa).
WEBCAST AND CONFERENCE CALL
You can participate in the analyst briefing on Thursday 11 February 2016 at
11:00 a.m. Finnish time (EET) through a live webcast at www.ramirent.com and
conference call. Dial−in numbers are: +358 981 710 495 (FI), +46 8 566 42 702
(SE) +44 203 194 0552 (UK) and +1 855 716 1597 (US).
FINANCIAL CALENDAR UNTIL END OF 2016
Ramirent observes a silent period during 21 days prior to the publication of
annual and interim financial results.
Financial Statements
11 February 2016
Annual General Meeting
17 March 2016
Interim report January–March 2016
4 May 2016
Interim report January–June 2016
4 August 2016
Interim report January–September 2016
4 November 2016
The financial information in this stock exchange release has not been audited.
Vantaa, 11 February 2016
RAMIRENT PLC
Board of Directors
FURTHER INFORMATION
Group President and CEO Magnus Rosén
tel.+358 20 750 2845, magnus.rosen@ramirent.com
CFO Pierre Brorsson
tel.+46 8 624 9541, pierre.brorsson@ramirent.com
SVP, Marketing, Communications and IR Franciska Janzon
tel.+358 20 750 2859, franciska.janzon@ramirent.com
DISTRIBUTION
NASDAQ Helsinki
Main news media
www.ramirent.com
Ramirent is a leading equipment rental 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. Ramirent has operations
in the Nordic countries and in Central and Eastern Europe. In 2015, Ramirent
Group sales totalled EUR 636 million. The Group has 2,654 employees in 288
customer centres in 10 countries. Ramirent is listed on the NASDAQ Helsinki
(RMR1V). Ramirent – More than machines®.
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