Landsbanki seminar St Petersburg...

1 25 Sept, 2008 Landsbanki Seminar, St. Petersburg © 2008 Ramirent

Landsbanki Seminar25 September 2008, St. Petersburg

Kari Kallio, President and CEO


Ramirent in brief

Leading equipment rental company in Northern, Central and Eastern Europe

Net Sales of EUR 634 million (2007)

More than 4,000 employees

357 rental outlets across 13 countries

More than 100,000 customers

More than 200,000 rental units

Founded in 1955 and listed the OMX Nordic Exchange Helsinki since 1998

Headquartered in Finland


General rental companywith a wide product portfolio

Heavy Equipment

Light Equipment

Scaffolding

Lifts and Hoists

Tower Cranes

Modules

Power and Heating

Formworks


One-stop-shop supplier to a wide customer base

Czech Rep.

Customers

•ConstructionCompanies

•Industry

•Infrastructure

•Public

•Households

Suppliers

•Lifts and hoists•Tower cranes•Heavy equipment•Modules•Formworks•Light equipment•Scaffolding•Power and heating•Other

Outlet Network

One-stop-shop


0 200 400 600 800 1000

Loxam

Ramirent

Speedy Hire

Cramo

Algeko Scostman (US)

Select Plant Hire

GAM

Liebherr-Mietpartner

Mediaco Lifting

HSS Hire

2007

Market leader in Northern, Central and Eastern EuropeRental market 2007 (machinery & equipment): Europe EUR 23.5 bn

Source: IRN June 2008, ERA Convention 2008

MEUR


Key business driversfor Ramirent

Growing construction markets

Increasing penetration rates

Increased equipment usage

Market consolidation

Undeveloped rental markets

Entry into new markets


Financial Benefits• Release of capital for your core business• Minimizing assets & better cost control• No maintenance costs• No transportation vehicle fleet

Equipment and Service benefits• Large diversity of products• Availability of state-of-the art equipment• Use it when you need it• Proximity & delivery on the site

Safety Benefits• Pre-rental safety check • Regulation compliance• Well maintained fleet

Renting becoming the new standard


Rental penetration still lowin Ramirent markets

Penetration rate measured as machinery sold directly to rental companies as percentage of total machinery sales

Source: International Rental News/ Kaplan 2006

0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %

90 %

Europe(ex. UK)2010E

Europe(ex. UK)

Poland Baltics Finland Norway Denmark Sweden UK


A balanced market portfolio

Outlet

Local head office


Large potential in Central and Eastern EuropeConstruction output by Ramirent market

Inhabitants(million)

Construction Output(billion EUR)

48

8

10 11

5 5

10

20

3835

3 35

30

5

34

2 3

1 3

9

24

27

5

Norway Sweden

Finland

Denmark

145

90

**Russia

*Ukraine

Poland

Czech Rep.

Hungary

Slovakia

Lithuania

Latvia

Estonia

Source: Euroconstruct June 2008, *Business Monitor International,**Ministry for Economic Development of Russian Federation


Cornerstones of Ramirent’s strategy

Profitable growth

Local leadership positions

Balanced geographic portfolio

Emphasis on organic growth

Pursuing acquisitions orconsolidation opportunitiessupporting profitable growth

Strong balance sheet


0

100

200

300

400

500

600

700

1998 1999 2000 2001 2002 2003 2004 2005 2006 20070 %

5 %

10 %

15 %

20 %

25 %

30 %

Finland Sweden Norway Denmark Europe EBIT,%

MEUR

Ramirent targets profitable growth Compound annual growth rate 1998-2007: 39%

Entry in Czech Republic, acquisitions in Sweden

and Poland

Acquisition in Poland and Hungary

Acquisition of Altima and Treffco

Acquisition of Bautas and Stavdal

Start of growth strategy


Leading market positionsacross 13 countries

1971 00171*Europe Central

357

52

18

38

57

95

Outlets

1

1

1

2

1

Market Position

3 996688Group

67996*Europe East

25559Denmark

682153Norway

656167Sweden

707144Finland

Employees(average)

R12 Sales 6/2008Segments

*Europe EastRussia Estonia LatviaLithuania Ukraine

Europe CentralPolandHungaryCzech RepublicSlovakia


Pan European Fleet

Finland Sweden Norway Denmark Ramirent Europe1)

Local equipment Local equipment Local equipment Local equipment

Local equipm.

Fleet management

Procurement

Finance

Rental Outlet Network

1) Ramirent Europe includes Russia, Estonia, Latvia, Lithuania, Poland, Hungary, Ukraine, Czeck Republic, Slovakia

Operating structure

Local equipm.

East Central

Fleet management


H108 Interim Report:Growth continued, but profits declinedH1 2008 Highlights

Net sales increased by 18.8% to MEUR 342.9 (288.6)

EBITDA up 9.7% to MEUR 112.1 (102.2)

EBIT was MEUR 65.0 (65.5) with a margin of 19.0% (22.7%)

Earnings per share of EUR 0.38 (0.42)

Gross Capital expenditure was 172.1 (147.2), of which machinery and equipment MEUR 139.2 (145.7)

Net debt of MEUR 373.5 (279.6), gearing of 112.5% (99.4%)

Return on invested capital (ROI) of 25.8% (28.4%)

Q2 2008 Highlights

Net sales increased by 18.9% to MEUR 180.8 (152.0)

EBIT was MEUR 35.5 (36.5) with a margin of 19.6% (24.0%),

EBIT excl. property sale gains was MEUR 35.1 (33.9)

Earnings per share of 0.20 (0.24)


19,8 %21,1 %21,3 %

24,0 %

27,6 %25,6 %26,2 %

14,7 %

19,6 %18,2 %

0 %

5 %

10 %

15 %

20 %

25 %

30 %

Q1 Q2 Q3 Q4

EBIT -margin

105117

130

146137

152166

180

162

181

0

20

40

60

80

100

120

140

160

180

200

Q1 Q2 Q3 Q4

Sales

H108- Group total

1%62.963.34%33.935.1EBIT excl. capital gains

296

3,261

22.7%

65.5

288.6

1-6/07

357

3,996

19.0%

65.0

342.9

1-6/08

24.0%19.6%EBIT-margin

Employees (average)

Outlets

36.5

152.0

4-6/07

-3%

19%

Change

-1%35.5EBIT

19%180.8Net sales

Change4-6/08MEUR

2006

2007

2008

Profits declined due to unfavourable market development in Norway and Denmark, as well as in the Baltics and Hungary.Costs increased due to expansion of the outlet network and entering new markets.

MEU

R


Ramirent Group sales allocation

21 %

25 %

22 %

8 %

13 %

11 %

Finland Sweden Norway Denmark Europe East Europe Central

H1 08

21 %

25 %

24 %

9 %

13 %

8 %

H1 07


Europe Central business operations continued to grow rapidly except in Hungary.Ramp up costs in Poland, Czech republic and Slovakia and the negative development in Hungary decreased profitability.

10

13

16

1817

21

0

5

10

15

20

25

Q1 Q2 Q3 Q4

Sales

23,3 % 21,4 % 20,4 %

27,9 %

9,3 %9,2 %

0 %

5 %

10 %

15 %

20 %

25 %

30 %

Q1 Q2 Q3 Q4

EBIT-margin

H108 - Europe Central (Poland, Hungary, Czech Rep., Slovakia)

97

1,0019.3%3.537.6

1-6/08

52

59822.2%4.922.3

1-6/07

21.4%9.3%EBIT-marginEmployees (average)

Outlets

2.712.8

4-6/07

2.021.0

4-6/08

-28%64%

Change

-29%EBIT69%Net sales

ChangeMEUR

MEU

R

2007

2008


Ramirent in Poland

Operations started in 200042 outletsMarket leader in scaffolding, machinery andequipment rentals for construction and industry

Market environment• Stable economic growth • High construction market growth• Increased competition as “everyone” wants to

be in the market

383838Population (million)

9.4%10.7%14.6%Construction output, % change (2007: EUR 35 bn)

Key facts 2008e 2009e 2010e

GDP (growth %) 5.0 4.5 5.0

Inflation % 3.8 3.5 3.0

Source: PMR Research, GUS, Euroconstruct


H108 - Europe East (Russia, Estonia, Latvia, Lithuania, Ukraine)

52

679

18.1%

7.9

43.5

1-6/08

49

551

28.4%

10.9

38.4

1-6/07

29.4%16.0%EBIT-margin

Employees (average)

Outlets

6.2

21.0

4-6/07

3.7

23.4

4-6/08

-39%

11%

Change

-28%EBIT

13%Net sales

ChangeMEUR

27,2 %

29,4 %

34,3 %36,0 %

16,0 %

20,6 %

0 %

5 %

10 %

15 %

20 %

25 %

30 %

35 %

40 %

Q1 Q2 Q3 Q4

EBIT-margin

17

21

26 26

20

23

0

5

10

15

20

25

30

Q1 Q2 Q3 Q4

Sales

Sales decreased in Estonia and Latvia; strong growth continued in Russia, Ukraine and Lithuania. Profitability decreased due to the negative development in Estonia and Latvia.Adjustment of the fleet capacity and cost structure continued in Estonia and Latvia.

MEU

R

2007

2008


Ramirent in Russia


GDP 6.1 5.7 5.8

Inflation 9-10.5 6-7.5 5-7.0

Population (million`s) 141.7 141.6 141.5

Change % Construction output (2007: EUR 95 bn) 12.3 12.0 11.5

Market EnvironmentGrowth considerably above European averageConsiderable foreign investments Growing construction market

Source: Ministry for Economical Development of Russian Federation

Operations started in 19887 outletsStrong market position in St. Petersburg and MoscowRental customers also outside St Petersburg and Moscow area


Federal districts of the Russian Federation


Murmansk Area

Karelia

Vologda Area

Novgorod Area

Pskov Area

Leningrad Area

1228

857

693

657714

1632St. Petersburg, 4571 thousand

- Regional population in thousands

Russia North-West Region, Population

Vologda, 294 thousand

Tcherepovetz, 308 thousand

Petrozavodsk, 282 thousand

Murmansk, 318 thousand

Kondopoga, 35 thousand

Apatity, 64 thousand


Russian rental market for construction equipment and machines

The market is in the initial stage of development:– Local companies can only provide a limited range of machines and

equipment (mostly they are specialised and lack a wide offering)and limited additional services

The market is mostly concentrated to the large cities

Annual growth was 20-30% in the last 3 years due to fast construction development in Moscow and St. Petersburg


Russian rental market for construction equipment and machines

Construction companies are also renting their fleet capacity

Few big rental companies in St. Petersburg and Moscow

Big construction companies are still not rental customers

Increased demand for one-stop-shop rental

Business environment is improving


Russian rental market expectations

Consolidation of the market players and development of their product and service portfolios

Regional expansion of the leading players forced by the leading construction companies that have initiated ambitious construction projects in different regions of Russia

Further growth in the market estimated at the level of 30-40% in the mid term

– based on increasing machine and equipment requirements from authorities involved in the construction sector as well as the active development of the construction companies operating in Russia


RussiaRamirent opportunities and challenges

Our largest single potential market

More challenging business environment

Long history and good base for development

Requires big investments

Geographical distances

Management


Ramirent in Ukraine


GDP 17.0 18.0 17.0

Inflation 8.0 9.0 9.5

Population (million`s) 46.5 46.0 45.5

Change % Construction output (2007: EUR 8 bn) 10.2 n/a n/a

Market environmentGrowth considerably above European averageConsiderable foreign investment activitiesFavourable labour conditions

Source: Business Monitor International

Operations started in 20033 outletsStrong market position


UkraineMarket environment

Availability of modern real estate facilities by type, sq.m

-

500 000

1 000 000

1 500 000

2 000 000

2 500 000

3 000 000

Office Warehouse Retail

Kiev

Warsaw

Prague

Budapest

Sq.m

.

Source: Colliers International and Business Monitor International

Availability of modern real estate facilities 2-3 times behind CentralEurope depending on type of property


Outlook 2008The operating environment has in 2008 become more challenging and we expect overall equipment rental market growth rate to slow down.

In Nordic region, strongest growth expected in Sweden and Finland while growth slowing down in Norway and Denmark.

In Central and Eastern Europe, sustained growth expected in mostoperating countries expect for the Baltics and Hungary.

Priority set on bolt-on acquisition and reallocation of existingequipment and cost reductions in countries with weak marketexpectations.

Since Ramirent will delimit investments, cash flow is expected to bepositive for the second half of 2008 and gearing to improve.


Outlook 2008

For the full year 2008, we estimate net sales growth to continue, but profit before taxes and earnings per share

to be below the 2007 level.


Magnus Rosén, New CEO of Ramirentas of 15 January 2009

Magnus Rosén, b. 1962

Joins Ramirent from the position as BE Group’s President of Business Area Sweden since 2008

Previous experience: Managing Director at Cramo AB, Senior Vice President at Cramo Oyj; Managing Director at BT Hyrsystem AB and Service Market Manager at BT Svenska AB

Education: B.Sc. Business administration and Economics, Linköping University, MBA Stockholm School of Economics and several executive training programmes including IMD in Lausanne

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