Vantaa, Finland, 2013-11-28 07:00 CET (GLOBE NEWSWIRE) --
Ramirent is today hosting a Capital Markets Day in Helsinki for analysts and investors. The aim of the event is to discuss the Group’s strategic objectives for the period 2014-2016. Ramirent has a balanced geographical business portfolio with focus on the Baltic Rim where it enjoys a market leading position. In recent years Ramirent has successfully implemented a number of actions to develop its operational excellence, reduce risk and widen the customer base. Over the next three years, the Group is aiming to achieve sustainable profitable growth by maintaining these initiatives, whilst pursuing a growth strategy based on extending the customer value proposition and increasing the footprint both into new customer sectors and geographies.
Ramirent’s remains well capitalised and the company is reviewing strategic opportunities. Capital will be put to productive use through high-return growth investments and distributed to shareholders as appropriate.
Ramirent’s long-term financial targets:
1. Profit generation: Return on equity, ROE, of 18% over a business cycle
2. Leverage and risk: Net debt to EBITDA below 1.6x at the end of each fiscal year
3. Dividend: Dividend pay-out ratio of at least 40% of the net profit
To secure its long-term profit generation target, Ramirent is pursuing an EBITA margin of at least 18% for all segments which is expected to deliver a 300 bps EBITA margin improvement at Group level, from 14% in 2012 to 17% by the end of 2016. Specific actions to reach the EBITA margin target are being implemented and will be presented in more detail at today’s event in Helsinki. Key drivers of the profitability improvement are the integrated solutions provided to all customer sectors and improved operational excellence through a common Ramirent platform which will significantly harmonise the company’s operations. Ramirent will also continue to improve pricing management, optimise customer centre network, improve capacity utilisation rates and further centralise sourcing.
MAGNUS ROSÉN, PRESIDENT AND CEO:
“Customer First is at the heart of our strategy. We are improving the customer experience by expanding our customer value proposition and strengthening our customer care model in all markets. Our vision is to set the benchmark for industry performance and customer service. We aim to achieve this vision through simplifying customers’ business operations by delivering Dynamic Rental Solutions™.
Ramirent pursues growth from outsourcing opportunities and in selected small- to mid-sized acquisitions. Accelerated growth is sought from defined growth pockets such as renovation, energy, oil & gas and the public sector. Construction will remain the main customer sector in the strategy period but the company targets to increase non-construction sales up to 40% of the Group’s net sales. Ramirent is able to serve both of these end markets with its understanding of customer needs, wide customer centre network and comprehensive equipment fleet.”
RAMIRENT REITERATES ITS OUTLOOK FOR 2013
There is no change in the full year outlook for 2013 and Ramirent’s EBITA is expected to be slightly below the 2012 level.
Presentation materials
All presentations held during the Capital Markets Day will be available in English on 28 November 2013 at approximately 9.00 a.m. Finnish time at www.ramirent.com/investors.
Venue of the Capital Market Day on 28 November 2013
Hilton Helsinki Airport hotel, visiting address: Lentajankuja 1, Vantaa, 01530, Finland. Registration opens at 8:30 am and the event ends approximately 1:30 pm.
More information is available on Ramirent’s website at www.ramirent.com/investors.
RAMIRENT PLC Magnus Rosén President and CEO
FURTHER INFORMATION Franciska Janzon, SVP, Marketing, Communications and IR, tel.+358 20 750 2859, franciska.janzon@ramirent.com
DISTRIBUTION: NASDAQ OMX Helsinki Main news media www.ramirent.com
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 2012, the Group’s net sales totalled EUR 714 million. The Group has 2,600 employees at 306 customer centres in 10 countries in the Nordic countries and in Central and Eastern Europe. Ramirent is listed on the NASDAQ OMX Helsinki Ltd.
