RAMIRENT PLC STOCK EXCHANGE RELEASE 11.11.2004 at 8.00 a.m.
RAMIRENT INTERIM REPORT JANUARY – SEPTEMBER 2004
- Net sales increased by 78.7% to EUR 226.0 million (126.5)
- The integration of Altima and the Danish company Treffco company into the
Ramirent Group has been concluded, resulting in EUR 5.5 million in non-recurring
integration costs being booked for the review period
- Earnings before interest, taxes, depreciation and amortisation(EBITDA) increased
by 64.4% to EUR 55.4 million (33.7)
- Operating profit (EBIT) increased by 41.7% to EUR 19.7 million (13.9).
- Excluding non-recurring integration costs, operating profit improved by 81.3% to
EUR 25.2 million. Earnings before taxes (EBT) was EUR 14.2 million (9.0), an
increase of 57.8%
- Earnings per share were EUR 0.82 (EUR 1.06)
- The equity to assets ratio was 38.0% (29.5%)
Net sales increased by 78.7 %, most of which was attributable to the acquisition
of Altima. Growth also occurred in Ramirent’s Finnish, Norwegian and European
operations. Altima’s operations have been included in the Group’s figures since
the beginning of February. Profit was affected during the review period by non-
recurring integration costs of EUR 5.5 million resulting from the integration of
the Altima and Treffco businesses.
1-9/2004 1-9/2003 1-12/2003
Net sales 226.0 126.5 172.9
Earnings before interest, taxes,
depreciation and amortisation (EBITDA) 55.4 33.7 45.2
Earnings before goodwill depreciation
(EBITA) 22.8 15.7 21.7
Operating profit (EBIT) 19.7 13.9 19.3
EBIT excl. non-recurring items 25.2 13.9 19.3
Financial income and expenses -5.5 -4.9 -6.3
Earnings before taxes (EBT) 14.2 9.0 13.1
Profit for the period 8.0 7.0 10.5
Equity to assets ratio, % 38.0 29.5 31.6
Gearing, % 116.0 182.0 156.1
Net debt 182.4 120.0 106.3
Personnel, average 2343 1442 1464
Personnel at end of period 2353 1442 1452
Equity per share, EUR 11.93 9.08 9.26
Earnings per share (EPS) (diluted), EUR 0.82 1.05 1.57
Earnings per share (EPS) (non-diluted), EUR 0.82 1.06 1.58
Ramirent is a company focused on construction machinery and equipment rentals,
which operates in the Finnish, Swedish, Norwegian, Danish and Eastern and Central
The machinery rental market is growing slightly in Finland and Norway, but the
market was somewhat weaker in Sweden and Denmark in the first half of the year
compared with the previous year, although the market has improved since the
summer. The market is still growing strongly in the Eastern and Central European
countries (Russia, the Baltic countries, Poland, Hungary and the Ukraine).
GROUP NET SALES AND PROFIT
The Group’s net sales for the review period totalled EUR 226.0 million (126.5), of
which Ramirent Finland accounted for EUR 53.4 million (42.6), Ramirent Sweden for
EUR 70.0 million (18.7), Ramirent Norway for EUR 59.4 million (51.1), Ramirent
Denmark for EUR 20.6 million (-) and Ramirent Europe for EUR 22.6 (14.1) million.
The Group's operating profit for the review period was EUR 19.7 million (13.9), of
which Ramirent Finland accounted for EUR 9.3 million (7.5), Ramirent Sweden for
EUR 3.3 million (1.3), Ramirent Norway for EUR 3.6 million (3.6), Ramirent Denmark
for EUR 1.0 million (-) and Ramirent Europe for EUR 2.5 million (1.5). The Group's
profit after financial items for the period was EUR 14.2 million (9.0). The net
profit for the period after taxes and minority interests was EUR 8.0 million
INTEGRATION COSTS AND RESTRUCTURING MEASURES
The integration of Altima and Treffco to the Ramirent Group has been completed.
The total costs of integration amounted to EUR 5.5 million, divided between Altima
EUR 5.1 million and Treffco EUR 0.4 million. In addition, the operations of
Stavdal and Altima in Sweden were integrated from 1 October 2004 onwards and
continued under the Ramirent name. This change process will cause non-recurring
costs of approx. EUR 0.8 million during the remainder of the year. The effect of
the savings produced by the restructuring measures estimated to amount to some EUR
10 million annually has partly materialised during the second half of 2004 and is
expected to fully materialise in 2005. Profitability will be further improved in
the areas of procurement, logistics and order more effective sharing and transfer
CAPITAL EXPENDITURE AND DEPRECIATION
Group companies’ gross investments in non-current assets totalled EUR 146.4
million (26.6). The acquisition price of Altima AB’s stock was EUR 88.5 million,
of which Group goodwill accounted for EUR 30.2 million. The depreciation period
for this Group goodwill is 20 years.
The acquisition price of the parent company’s minority holding (35%) in Ramirent
Europe Oy was EUR 9.8 million, of which Group goodwill accounted for EUR 5.8
million. This Group goodwill will be depreciated in 15 years. In the review
period, depreciation was booked for six months, as the acquisition took place at
the end of March.
Goodwill and Group goodwill totalled EUR 63.9 million (29.8) at the end of the
review period. The depreciation recorded in the review period totalled EUR 3.1
FINANCE AND LIQUIDITY
The Group’s liquidity remained good during the review period.
At the end of the review period, Ramirent had interest-bearing liabilities
totalling EUR 195.0 million (126.6). Interest-bearing liabilities increased in the
review period by EUR 83.3 million.
Ramirent’s interest-bearing debt included 75% of variable rate loans, of which 45%
had been changed into fixed rate swaps. The nominal value of the interest rate
swaps at the end of the review period was EUR 64 million. Net financial expenses
rose to EUR 5.5 million (4.9). The Group’s equity to assets ratio was 38.0%
The balance sheet total was EUR 414.6 million (223.1), of which liquid assets
totalled EUR 12.6 million (6.6).
During the review period, Ramirent’s overall business operations developed as
planned. However, the weaker than expected market in Sweden and Denmark during the
first half of the year affected operations and profitability somewhat.
Ramirent implemented its exchange offer to Altima’s shareholders for Altima shares
at the end of January, and Altima became a part of the Ramirent Group from the
beginning of February.
In Finland the businesses of Altima Oy were transferred to Ramirent Plc and its
subsidiaries. In this connection, 10 outlets were closed or combined, and the
number of personnel was reduced by 77 employees. In addition, the administration
of Altima Oy was integrated into the administration of Ramirent.
Ramirent’s business operations in Finland have developed positively. Net sales
grew by 25.3% and profitability improved compared to the previous year. The
increase in net sales resulted from the integration of Altima and the increase in
Ramirent’s core operations. In Finland, EUR 0.3 million in non-recurring costs
have been recorded from integrating Altima into Ramirent.
The administrations of the Swedish Altima AB, Altima Sverige AB and Stavdal i
Sverige AB were integrated into Ramirent, and in this context, the personnel was
reduced by 30 employees. The operations of Stavdal and Altima were also integrated
from 1 October, 2004, and continued under the Ramirent name. Ramirent’s net sales
in Sweden have grown strongly primarily because of the integration of Altima.
In Sweden, EUR 0.9 million in non-recurring costs were recorded from integrating
Altima into Ramirent. In addition, the advanced integration of Stavdal’s and
Altima’s operations and the changing of the name to Ramirent will incur non-
recurring costs of EUR 0.8 million during the rest of the year.
In Norway, the Altima AS business was transferred into the Ramirent subsidiary
Bautas AS. In conjunction with the integration, four outlets were closed or
combined, the administration of Altima AS was merged into the administration of
Bautas AS, and the personnel was reduced by 55 employees.
Ramirent’s net sales increased in Norway due to the integration of Altima and the
improved market. Profitability has been hampered by non-recurring costs from the
integration of Altima, totalling EUR 3.4 million.
Ramirent’s Norwegian subsidiary, Bautas AS, and Malthus AS together signed a spatial
unit contract with Skanska Norge AS worth NOK 230 million. Bautas will handle around
one-half of the deal, which is the largest-ever spatial unit delivery in Norway and
comprises overnight accommodation for over 2,200 workers on the Ormen Lange project
on the west coast of Norway. The delivery, which covers around 60,000 square metres,
has already started and is due to be completed in spring 2006. The worksite will be
officially opened on 15 December 2004, and will operate until the latter half of
The Danish subsidiary of Ramirent, Altima A/S acquired the Treffco A/S personnel
lifts rental business at the beginning of March. The businesses of Treffco A/S are
included in the Group’s figures from the beginning of March.
The operations of Altima and Treffco were combined in Denmark and will be carried
out in the Ramirent AS company from 1 October 2004. These changes will be
implemented during 2004. In this connection, three outlets were closed down, and
the personnel was reduced by 30 employees. The non-recurring costs of EUR 0.4
million resulting from the integration of functions affected the profitability of
Ramirent Denmark in the first half of the year.
In the Baltic countries, the business operations of the Altima companies were
transferred to local subsidiaries of Ramirent Europe Oy. In conjunction with the
mergers, eight outlets were closed or combined, and the administrations of Altima
in the countries in question were merged into the corresponding administrations of
Ramirent Europe Oy's subsidiaries. In this connection, the personnel was reduced
by 36 employees.
At the end of March, Ramirent Plc acquired the 35% minority holding in Ramirent
Europe Oy held by Alliance Scan East Fund. After the transaction, Ramirent Plc has
a 100% holding in Ramirent Europe Oy. The acquisition of the minority holding
promotes the development of the Ramirent Group in the growing Eastern and Central
European machinery rental market.
Ramirent Europe's Polish subsidiary, Ramirent S.A., acquired the business
operations of the German company MVS AG's Polish subsidiary MVS Polska Sp.Z.oo in
March. The business operations of MVS AG are included in the Group's figures from
the beginning of March. The acquired business operations comprise 550 spatial
units and containers and the corresponding customer contracts and personnel. The
acquisition notably strengthens the spatial unit operations of Ramirent in Poland.
Ramirent's operations in Eastern and Central European countries (Russia, Estonia,
Latvia, Lithuania, Poland, Hungary and the Ukraine) have developed positively. Net
sales rose by 60.0% and profitability improved. Growth has resulted from the
integration of Altima and growth in core operations. At Ramirent Europe, EUR 0.5
million in non-recurring costs have been recorded from integrating Altima into
In the review period, the Group employed an average of 2343 people (1442). A total
of 566 employees (517) worked in Finnish operations, while 1777 (925) were
employed in foreign operations. The increase in personnel was due to the
integration of Altima and Treffco operations into the Ramirent Group from the
beginning of February. Employees have also been added in the units of Ramirent
Europe as a result of strong growth.
During the review period 5,100,164 Ramirent-shares (1,408,752) were traded in the
Helsinki Stock Exchange at a total value of EUR 78.3 million (19.6); i.e. 39% of
Ramirent’s total stock was traded. The highest price quoted in the review period
was EUR 17.65 and the lowest EUR 12.83. The average price of the review period was
EUR 15.36, and the last quotation of the review period’s last trading day (30
September, 2004) was EUR 16.80. The company’s market capitalisation at the end of
the review period was EUR 217,506,290.40.
Ramirent’s share capital on 30 September 2004 was EUR 11,004,782.55, divided into
At the Annual General Meeting on 14 April, 2004 the Board of Directors was
- decide on the acquistion of maximum 639,145 of the company´s own
shares with the company´s distributable funds, e.g. around 5% of the total number
- decide on the surrender of maximum 639,145 of the company´s own shares acquired
on the basis of the Board´s acquisition authorisation.
- decide on an increase in share capital by one or more rights offerings,
provided that in the rights offering it shall be possible to subscribe to
no more than 1,487,706 of the company´s new shares, i.e. around 11.6% of
all the current shares, and provided that the company´s share capital can
be increased by no more than EUR 1,264,550.10. The authorisation gives the
Board of Directors the right to deviate from the shareholders´ pre-emptive rights
to subscribe for new shares and to decide on the subscription prices and
subscription terms and conditions.
The authorisations are valid for one year from the decision of the Annual
General Meeting. The authorisations have not yet been used.
The company’s share capital has been increased by a bonus issue of EUR 115,925.10
from the amount of EUR 10,749,542.45 to EUR 10,865,467.55. The share capital was
increased by increasing the counter book value of the shares from EUR 0.84 (not an
exact value) to EUR 0.85 and by transferring an amount corresponding to the
increase in share capital from the share premium fund to the share capital.
During the review period Ramirent Plc received a disclosure under chapter 2,
section 9 of the Securities Markets Act, according to which Gaspar Oy Ab’s
holding in Ramirent Plc decreased from 904,180 shares (6,98%) to zero.
At the end of the review period the ten largest shareholders were:
Shares % of shares
Nordstjernan AB 2,481,135 19.16
Veidekke ASA 2,142,857 16.55
Oy Julius Tallberg Ab 1,212,250 9.36
LE Lundbergföretagen AB 845,380 6.53
FIM Fenno Mutual Fund 344,600 2.66
Optiomi Oy 271,500 2.11
Odin Finland 213,993 1.66
EQ Pikkujättiläiset/EQ Fund Management 200,000 1.54
Etera Mutual Pension Insurance Company 170,900 1.32
Mutual Fund Alfred Berg Finland 153,100 1.18
Other shareholders, of which 4,911,088 37.93
Nordea Bank Finland Plc
nominee-registered 906,598 7.00
Banken AB nominee-registered 497,740 3.84
On 30 September, 2004, 0.11% of the shares and votes of Ramirent Plc were owned or
controlled, directly or indirectly, by the President and CEO and the members of
TRANSFER INTO THE BOOK-ENTRY SYSTEM AND LISTING OF 2002 OPTIONS
Ramirent Plc’s Extraordinary General Meeting decided on 12 December 2002 to
establish an options program. The number of options was 500,000. Of these, 250,000
options were designated 2002A, and 250,000 options were designated 2002B. On 10
November 2004 the company’s Board of Directors has cancelled 3,000 A-options and
3,000 B-options. The maximum number of Ramirent Plc shares that can be subscribed
for with the options is thus 494,000 shares.
The company’s Board of Directors has decided that the 2002 options will be
transferred to the book-entry system and that a listing will be sought for the
options on the Helsinki Exchanges so that trading with the 2002A-options will
begin at the earliest on 15 November 2004. The number of the 2002A-options to be
listed is 247,000.
The share subscription price when exercising the 2002A and 2002B options is the
trade-weighted average price of the Ramirent Plc share on the Helsinki Exchanges,
1 October - 30 November 2002. The current valid subscription price is EUR 13.61
and this is reduced prior to a share subscription by the amount of decided
dividends on the record date of each dividend distribution.
The share subscription period for the 2002A options is 1 October 2004 - 31 October
2006 and for the 2002B options, 1 October 2005 - 31 October 2007.
SIMPLIFIED SALES PROCESS
Ramirent Oyj’s Board of Directors has earlier decided that shares will not be
entered for listing on the Stockholmbörsen O-list at this stage.
As a consequence of Ramirent’s listing on the Helsinki Exchanges, shareholders
with shares registered in the Swedish VPC system normally will have to pay foreign
commission for selling their shares through their nominee or VPC account operator.
Ramirent Plc’s Board of Directors has decided in co-operation with Evli Bank Plc
to provide the shareholders owning less than 100 shares with a possibility to
during a limited period of time sell their shares free of such foreign
commission. Further information on the simplified sales process is available on
Ramirent’s website (www.ramirent.com).
EVENTS AFTER THE REVIEW PERIOD
The Board of Directors has on November 10 2004 decided to cancel 3,000 2002A-
options and 3,000 2002B-options. The actual maximum number of Ramirent Plc shares
that can be subscribed for with the 2002 options is thus 494,000 shares.
It is estimated that total construction will grow in Finland by 2-4% compared with
2003. In the other Nordic countries, construction is expected to remain on the
same level as before or to grow slightly. It is estimated that in Central and
Eastern European countries the relatively strong growth in construction will
continue. These estimates are based on data published in the reports of the VTT
Information Service and Euroconstruct (June 2004).
The company’s focus in 2004 will be on integrating the Altima operations and
achieving synergy benefits, with the goal of improving the company’s profitability
and operating cash flow and lowering its interest-bearing debt. In addition, the
company aims to achieve savings by centralising its procurement and investment
functions within the Group. The integration of Altima was carried out according to
plan. The actions were executed and the costs were incurred during the first three
quarters of the year. The effect of the savings produced by the restructuring
measures estimated to amount to some EUR 10 million annually has partly
materialised during the second half of 2004 and is expected to fully materialise
The net sales of the Ramirent Group are expected to grow significantly in 2004
compared with the previous year. The increase will result mainly from the
integrating of Altima's businesses into the Group. Growth is also expected to
occur in Ramirent's core operations in Finland, Norway and in Eastern and Central
European countries. The Group's profit before taxes is expected to improve
substantially in 2004 compared to the previous year.
RAMIRENT GROUP’S INCOME STATEMENT, BALANCE SHEET AND KEY FIGURES
1-9/04 1-9/03 Change Change 1-12/03
EUR mill. EUR mill. EUR mill. % EUR mill.
Finland 53.4 42.6 10.8 25.3 57.3
Sweden 70.0 18.7 51.3 274.3 25.4
Norway 59.4 51.1 8.3 16.2 69.4
Denmark 20.6 - 20.6 100.0 -
Other European countries 22.6 14.1 8.5 60.3 20.8
Net sales, total 226.0 126.5 99.5 78.7 172.9
Other operating income 0.1 0.2 -0.1 -50.0 0.5
Depreciation 35.7 19.8 15.9 80.3 25.9
Finland 9.3 7.5 1.8 24.0 10.3
Sweden 3.3 1.3 2.0 153.8 1.4
Norway 3.6 3.6 - 0.0 4.8
Denmark 1.0 - 1.0 100.0 -
Other European countries 2.5 1.5 1.0 66.7 2.8
Operating profit, total 19.7 13.9 5.8 41.7 19.3
Financial items -5.5 -4.9 0.6 12.2 -6.3
taxes (EBT) 14.2 9.0 5.2 57.8 13.1
Percentage of net sales, % 6.3 7.1 7.5
Profit for the period 8.0 7.0 1.0 14.3 10.5
Percentage of net sales, % 3.5 5.5 6.1
An increase in net deferred tax liabilities reduced the profit for the review period
by approximately EUR 1.6 million. This resulted from a change of deferred tax assets
from accounts of 2003 totalling EUR 2.1 million and a lowering of the corporate tax
rate in Finland from 29 per cent to 26 per cent, with an effect of EUR 0.5 million.
Other taxes have been calculated on the profit for the review period in accordance
with the valid tax rate.
BALANCE SHEET 30.9.04 30.9.03 Change 31.12.03
ASSETS EUR mill. EUR mill. EUR mill. EUR mill.
Intangible assets 65.2 31.5 33.7 30.8
Tangible assets 261.7 143.6 118.1 140.7
Investments 0.4 0.4 - 0.4
Total non-current assets 327.3 175.5 151.8 171.9
Inventories 12.5 7.1 5.4 6.3
Receivables 62.2 33.9 28.3 32.4
Cash in hand and at the banks 12.6 6.6 6.0 5.3
Total current assets 87.3 47.6 39.7 44.0
TOTAL ASSETS 414.6 223.1 191.5 215.9
Capital and reserves 154.5 59.9 94.6 61.9
Minority interests 2.8 6.0 -3.2 6.2
Long-term liabilities 168.0 134.9 33.1 100.5
Short-term liabilities 89.3 22.3 67.0 47.3
Total 257.3 157.2 100.1 147.8
TOTAL LIABILITIES 414.6 223.1 191.5 215.9
CASH FLOW STATEMENT
1-9/04 1-9/03 1-12/03
EUR mill. EUR mill. EUR mill.
Cash flow from operating activities 40.0 20.2 36.9
Cash flow from investing activities -146.4 -26.5 -28.8
Cash flow from financing activities
Paid share issue 85.9 1.6 2.6
Dividends paid -3.2 -3.2 -3.2
Change in short-term loans -1.2 -4.3 -1.6
Change in long-term loans 32.2 11.1 -8.2
Total cash flow from financing
activities 113.7 5.2 -10.4
Change in liquid assets 7.3 -1.1 -2.3
INCOME STATEMENT 7-9/04 4-6/04 1-3/04 10-12/03 7-9/03 4-6/03 1-3/03
QUARTERLY EUR EUR EUR EUR EUR EUR EUR
mill. mill. mill. mill. mill. mill. mill.
Finland 19.7 17.8 15.9 14.6 16.5 14.1 12.1
Sweden 26.0 25.6 18.4 6.8 6.0 7.3 5.3
Norway 20.2 22.2 17.0 18.3 17.2 16.4 17.5
Denmark 8.5 7.7 4.4 - - - -
Other European countries 9.9 7.2 5.5 6.7 6.1 4.6 3.4
Net sales, total 84.3 80.5 61.2 46.4 45.8 42.4 38.3
Other operating income - - 0.1 0.3 0.1 0.1 0.1
Finland 5.4 3.0 0.9 2.8 4.8 2.2 0.5
Sweden 2.8 0.4 0.1 0.1 1.0 0.3 0.0
Norway 2.0 0.9 0.7 1.2 1.4 1.3 0.9
Denmark 1.2 -0.3 0.1 - - - -
Other European countries 1.8 0.5 0.2 1.3 1.3 0.3 -0.1
Operating profit, total 13.2 4.5 2.0 5.4 8.5 4.1 1.3
taxes 11.7 2.5 - 4.1 6.1 3.2 -0.3
Percentage of net sales, % 13.9 3.1 - 8.8 13.2 7.7 -0.8
Earnings before tax 11.7 2.5 - 4.1 6.1 3.2 -0.3
Profit for the period 5.7 2.4 -0.1 3.5 4.5 2.9 -0.4
Percentage of net
sales, % 6.7 3.0 -0.2 7.5 9.8 6.9 -0.1
KEY FIGURES 1-9/04 1-9/03 1-12/03
Interest-bearing debt, EUR mill. 195.0 126.6 111.7
Net debt, EUR mill. 182.4 120.0 106.3
Gearing, % 116.0 182.0 156.1
Equity to assets ratio, % 38.0 29.5 31.6
Gross investments in non-current
assets, EUR mill. 146.4 26.6 32.2
Gross investments, % of net sales 64.8 21.0 18.6
Personnel, average 2343 1442 1464
Earnings per share, EUR 0.82 1.06 1.58
Equity per share, EUR 11.93 9.08 9.26
The number of shares on 30 September, 2004 was 12,946,803, the number of shares on 30
September, 2003 was 6,595,461 and the number of shares on 31 December, 2003 was
30.9.04 30.6.04 31.3.04 30.9.03 31.12.03
CONTINGENT LIABILITIES EUR mill. EUR mill. EUR mill. EUR mill. EUR mill.
Real estate mortgages 8.9 8.9 8.9 4.8 5.5
Company mortgages 247.1 243.1 243.1 236.6 236.6
Shares (book value) 50.5 50.3 37.8 32.1 33.0
Other pledges on behalf of Group
Companies 8.5 8.9 6.5 1.0 6.4
Leasing obligations 1.7 1.8 2.9 4.9 3.0
The Group has no liabilities arising from derivative contracts.
Ramirent will adopt IFRS reporting standards from the beginning of 2005. Preparations
have proceeded as planned.
PUBLICATION OF THE INTERIM REPORT
A conference will be held on Thursday 11 November, 2004 at 10.00 a.m.
for the representatives of the press and for investment analysts in the premises of
the World Trade Center in Helsinki, at Aleksanterinkatu 17, conference room 7-8,
At the conference, President & CEO Erkki Norvio will present the company's interim
report and the company's future outlook.
Helsinki, 10 November, 2004
Board of Directors
We have reviewed the interim report of Ramirent Plc for the period January -
September 2004 in accordance with the standards issued by the Finnish Institute of
Authorised Public Accountants.
A review is significantly more limited in scope than an audit. In our review, nothing
came to our attention that would indicate non-compliance of the interim report with
the rules and regulations covering the preparation of such reports in Finland.
Helsinki, 10 November 2004
KPMG WIDERI OY AB
Authorised Public Accountant
Erkki Norvio, tel. +358-9-417 42 824
or mobile +358-400-410 977
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