RAMIRENT’S FINANCIAL STATEMENTS BULLETIN FOR 2013: STRONG

Vantaa, Finland, 2014-02-17 08:00 CET (GLOBE NEWSWIRE) --   

Note! Figures in brackets, unless otherwise indicated, refer to the corresponding period a year earlier.

JANUARY–DECEMBER 2013 HIGHLIGHTS

• Ramirent net sales EUR 647.3 (714.1) million, down by 9.4%; adjusted for transferred or divested operations, net sales decreased by 4.2% at comparable exchange rates
• EBITA¹⁾ EUR 92.1 (100.6) million or 14.2% (14.1%) of net sales
• EBITA¹⁾ excluding non?recurring items²⁾ EUR 85.3 (100.6) million or 13.2% (14.1%) of net sales
• Profit for the period EUR 54.0 (63.7) million and EPS EUR 0.50 (0.59)
• Gross capital expenditure EUR 125.8 (124.0) million
• Cash flow after investments EUR 73.4 (54.2) million
• Net debt to EBITDA ratio 1.1x (1.1x)
• The Board proposes an ordinary dividend of EUR 0.37 (0.34) per share representing a 74% (57%) payout ratio and further proposes that the Board be authorised to decide at its discretion on the payment of additional dividend up to the amount of EUR 0.63 per share

OCTOBER–DECEMBER 2013 HIGHLIGHTS

• Ramirent net sales EUR 167.5 (194.1) million, down by 13.7%; adjusted for transferred or divested operations, net sales decreased by 5.9% at comparable exchange rates
• EBITA¹⁾ EUR 20.9 (29.7) million or 12.5% (15.3%) of net sales
• Profit for the period EUR 13.9 (19.9) million and EPS EUR 0.13 (0.18)

RAMIRENT OUTLOOK FOR 2014

The economic growth in 2014 is expected to be modest and construction market demand remains mixed in our core markets. Ramirent will maintain strict cost control and, for 2014, capital expenditure is expected to be around the same level as in 2013.  The strong financial position will enable the Group to continue to address profitable growth opportunities.

1) EBITA is operating profit before amortisation and impairment of intangible assets. 2) The non-recurring items include a non-taxable capital gain of EUR 10.1 million from the formation of Fortrent, a EUR 1.9 million loss from disposal of Hungary and a EUR 1.5 million restructuring provision in Denmark. * Retrospective application of amendment to IAS19 affecting Sweden and Norway segments.

 MAGNUS ROSÉN, RAMIRENT CEO:

“In 2013, against a background of challenging conditions in a number of our key markets, we continued to develop the operational platform and balanced approach to risk that we believe are fundamental to our future growth ambitions for the business. In such conditions a focus on cash is always paramount and we are pleased to report a substantial increase in cash flow of 35.6% compared to last year. At the end of 2013, Ramirent held one of the strongest balance sheets in the equipment rental industry with net debt to EBITDA 1.1x. Net sales decreased by 4.2% at comparable exchange rates in 2013, adjusted for the transfer of the operations in Russia and Ukraine to Fortrent as well as the divestment of our Hungarian business. Our EBITA margin remained on par with the previous year at 14.2% (14.1%). Excluding non?recurring items the EBITA margin was 13.2%.

In the fourth quarter of 2013, the demand for equipment rental weakened in Finland and Norway due to slower activity especially in the construction sector and we were unable to reduce costs to match the lower demand. We have intensified measures to strengthen profitability in these segments. The market situation in Sweden remained healthy and we continued measures to improve our operational efficiency. In Denmark, construction activity picked up, although from low levels, and we continued to restructure operations to increase profitability. In Europe Central market development was still weak but showed signs of stabilisation. Our business performed well in the Baltic States, where our capacity utilisation increased supported by high industrial activity. Integration of the Fortrent joint venture operations was successfully completed on 15 January 2014.

Throughout the year, we continued to work on our operational excellence and there are significant results still to come. Ramirent is pursuing an EBITA margin of at least 18% for all segments, which will 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 will be implemented across our countries during 2014. Integrated solutions provided to all customer sectors and improved operational excellence through the common Ramirent platform are our key measures to reach this goal. We will also continue to improve pricing management, optimise our customer centre network, improve capacity utilisation rates and further centralise sourcing.

Entering 2014, economic growth is expected to be modest and construction market demand remains mixed in our core markets. We will maintain strict cost control and capital expenditure is expected to be around the same level as in 2013. Ramirent is well prepared to manage fluctuations in market conditions and capture growth opportunities.

As our operational fundamentals have come a long way and we have balanced the risk level, growth strategy returns into focus in 2014. We have set up a clear growth strategy which includes pursuing outsourcing opportunities and selected small? to mid?sized acquisitions as well as evaluating entry to new sectors and geographies. Accelerated growth will be sought from defined growth pockets such as energy, oil and gas and the public sector.”

MARKET OUTLOOK 2013

According to a forecast published by Euroconstruct in December 2013, the Finnish construction market is expected to increase by 0.5% in 2014. Residential construction is estimated to decline during this year as construction companies have been cautious in new residential start–ups. Activity in non–residential construction is expected to pick–up slightly supported by gradually recovering commercial building. Construction of public sector buildings is forecasted to increase in 2014. Renovation is estimated to increase modestly. According to the Technical Research Centre of Finland (VTT), equipment rental market in Finland is estimated to grow by 3.0% in 2014. 

According to a forecast published by Euroconstruct in December 2013, the Swedish construction market is expected to increase by 1.6% in 2014. Residential construction is estimated to be the main growth driver. Non–residential construction is expected to remain at the previous year’s level. Due to a continuously expanding and ageing building stock, renovation will continue to grow also in 2014. Market activity in several industrial sectors is expected to develop positively. According to European Rental Association (ERA), equipment rental market in Sweden is estimated to grow by 2.3% in 2014.

Uncertainty in the Norwegian construction market has increased and the market is levelling out, albeit at a high level. According to a forecast published by Euroconstruct in December 2013, the Norwegian construction market is forecasted to grow by 3.6% in 2014. Prognosesenteret expects residential start?ups to decline in 2014 due to the general uncertainty in the economy. Market activity in renovation is expected to remain favourable in all construction sectors. The Norwegian government has introduced plans to improve transport infrastructure which will support the equipment rental market. According to Statistics Norway, investments in the oil and gas sector are forecasted to increase, which will fuel demand for equipment rental. According to European Rental Association (ERA), the equipment rental market in Norway is estimated to increase by 3.6% in 2014. However, increased uncertainty in the construction sector may impact negatively on the rental market in the first half of the year. 

The construction market is estimated to recover in 2014. According to a forecast published by Euroconstruct in December 2013, the Danish construction market is expected to grow by 3.3% in 2014. Residential construction is estimated to pick–up considerably, however from low levels. Market activity in non-residential construction is expected to improve, mainly due to a gradual upturn in general economic activity. Renovation is expected to increase supported by demand from the public sector where repair needs remain high. Infrastructure construction is forecasted to grow fuelled by new transport infrastructure and energy investments. According to the European Rental Association (ERA), the equipment rental market in Denmark is estimated to grow by 1.9% in 2014.

According to a forecast published by Euroconstruct in December 2013, the construction market in the Baltic States is expected to be slightly below last year’s level. The construction market is estimated to increase in Lithuania and to decrease in Latvia and in Estonia. Residential construction is estimated to grow supported by new building start–ups. Market activity in non–residential construction is expected to improve slightly in 2014. The market in infrastructure construction will weaken markedly due to a transition period in EU funding.

According to a forecast published by Euroconstruct in December 2013, the Russian construction market is estimated to grow by 2% in 2014. The equipment rental market is estimated to grow more than construction. The market situation in Ukraine is likely to remain challenging. The market outlook for Russia is positive over the long term. Construction in Russia continues to be strongly focused on new construction.

Construction activity is expected to pick up in Poland especially within residential and infrastructure construction. The market situation in renovation is also expected to improve. The Polish construction market is estimated to grow by 3.5% according to a forecast published by Euroconstruct in December 2013. New power plant projects in the energy sector will support the demand in 2014. In the Czech Republic, all construction sectors are expected to decline in 2014. The Slovakian construction market is supported by an improving outlook for infrastructure construction. According to the European Rental Association (ERA), the equipment rental market in Poland is expected to increase by 3.6% in 2014.

PROPOSAL OF THE BOARD ON THE USE OF DISTRIBUTABLE FUNDS

The parent company’s distributable equity on 31 December 2013 amounted to EUR 373,000,578.89 of which the net profit from the financial year 2013 is EUR 5,050,916.28.

The Board of Directors proposes to the Annual General Meeting 2014 that an ordinary dividend of EUR 0.37 (0.34) per share be paid for the financial year 2013. The proposed dividend will be paid to shareholders registered in Ramirent’s shareholder register maintained by Euroclear Finland Ltd on the record date for dividend payment 31 March 2014. The Board of Directors proposes that the dividend be paid on 11 April 2014.

The Board of Directors also proposes to the Annual General Meeting 2014 that the Board of Directors be authorised to decide at its discretion on the payment of additional dividend up to the amount of EUR 0.63 per share.

ANNUAL GENERAL MEETING 2014

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 Wednesday 26 March 2014 at 4:30 p.m.The stock exchange release to convene the AGM 2014 will be published on the Company’s website on 28 February 2014. Ramirent Plc’s Annual Report will be published on the Company’s website on 28 February 2014.

CORPORATE GOVERNANCE STATEMENT 2013 AND REMUNERATION STATEMENT 2013

Ramirent complies with the Finnish Corporate Governance Code 2010 approved by the Board of the Securities Market Association. Ramirent has published a Corporate Governance Statement based on the recommendation 54 and a Remuneration Statement based on the recommendation 47 of the Code, which are attached to this release in pdf format and can be reviewed on the website of Ramirent at www.ramirent.com.

ANALYST AND PRESS BRIEFING

A briefing for investment analysts and the press will be arranged on Monday 17 February 2014 at 11:00 a.m. Finnish time at the Opera Terrace, The Royal Opera House, Karl XII:s torg, 111 86 Stockholm, Sweden.

WEBCAST AND CONFERENCE CALL

You can participate in the analyst briefing on Monday 17 February 2014 at 11:00 a.m. Finnish time (EET) through a live webcast at www.ramirent.com and conference call. Dial?in numbers are: +358 9 8171 04 69 (FI), +46 8 5055 6487 (SE), +44 20 7660 2078 (UK) and +1 855 7161 592 (US). Recording of the webcast will be available at www.ramirent.com later the same day.

FINANCIAL CALENDAR UNTIL END OF 2014

Ramirent observes a silent period during 21 days prior to the publication of annual and interim financial results.

Annual Report 2013                             28 February 2014

Annual General Meeting                        26 March 2014

Interim report January–March                8 May 2014 at 9:00 a.m.

Interim report January–June                  29 July 2014 at 9:00 a.m.

Interim report January–September         6 November 2014 at 9:00 a.m

The financial information in this stock exchange release has not been audited.

Vantaa, 17 February 2014

RAMIRENT PLC Board of Directors

FURTHER INFORMATION Group President and CEO Magnus Rosén tel.+358 20 750 2845, magnus.rosen@ramirent.com

CFO and EVP Corporate Functions Jonas Söderkvist tel.+358 20 750 3248, jonas.soderkvist@ramirent.com

SVP, Marketing, Communications and IR Franciska Janzon 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 2013, the Group’s net sales totalled EUR 647 million. The Group has 2,600 employees at 304 customer centres in 10 countries in the Nordic countries and in Central and Eastern Europe. Ramirent is listed on the NASDAQ OMX Helsinki Ltd.