Interim report 1 January – 30 June, 2007 Kari Kallio President and CEO.

Interim report 1 January – 30 June, 2007

Kari KallioPresident and CEO

15/8/2007 Interim report 1-6/2007 2

Contents

Ramirent in brief

Financial statements

January-June 2007

Market and outlook 2007

Appendices:– Income statement & Balance

sheet

– Historical financial data

– Ten largest shareholders

– Share price development

15/8/2007 Interim report 1-6/2007 3

Ramirent Group in brief

The leading company in Nordics, and Central and Eastern Europe in machinery and equipment rentals for construction and industry

A full range of equipment, from small tools to massive tower cranes

Operating in twelve countries through 296 local outlets with 3,261 employees

EUR 498 million in net sales (2006)

Machinery and equipment rental business since 1955

Listed on OMX Nordic Exchange Helsinki since 1998

15/8/2007 Interim report 1-6/2007 4

Ramirent is a general rental company

Formworks

Modules Scaffolding

Cranes

Lifts and hoists

Power & heating

Heavy equipment Light equipment Other

15/8/2007 Interim report 1-6/2007 5

Access to reliable equipment where and when needed

Suppliers Customers

Construction companies

Industry

Infrastructure

Public

HouseholdsOne stop -shop

The outlet network

15/8/2007 Interim report 1-6/2007 6

Growing construction markets– Especially in Central and Eastern

Europe

Increased penetration

Increased usage of equipment

Consolidation of the rental industry– Fragmented industry today– Consolidation is on-going in

Western and Northern Europe

European rental market is estimated to EUR 22 bn

Key drivers in machinery rental business

15/8/2007 Interim report 1-6/2007 7

Customer benefits

Source: European Rental Association June 2007

Minimizing assetsBetter cost controlNo maintenanceNo transportation fleetLarge diversity of productsState of the art equipmentAvailabilityFlexibilityProximityDelivery on the siteExpertisePre-rental safety checkRegulation complianceWell maintained fleet

Release capital for your core businessFinancial

The right product when you need it

Equipment

Use it when needed

Be safe, just rent it, avoid the risk

Service

Norms & safety

15/8/2007 Interim report 1-6/2007 8

Ramirent operates in 12 countries

Segments

Sales R12

(MEUR)

Number of employees

Number of outlets

Market position

Finland 119 674 95 1

Sweden 142 587 48 2

Norway 130 619 37 1

Denmark 55 220 16 1

Europe 121 1,149 100 1

Group 567 3,261 296

Ramirent markets

Ramirent Europe consists of: Russia, Estonia, Latvia, Lithuania, Poland, Hungary, Ukraine, and Czech Republic

15/8/2007 Interim report 1-6/2007 9

Ramirent Group’s operating structure

RAMIRENT - GROUP´S OPERATING STRUCTURE

RENTAL OUTLET NETWORK

Finland Sweden Norway Denmark Europe

Local Local Local Local Local • Russia

equipment equipment equipment equipment equipment • Estonia

Pan - european fleet • Latvia

• Lithuania

Fleet management • Poland

• Ukraine

Procurement • Hungary

• Czech

Finance Republic

15/8/2007 Interim report 1-6/2007 10

European competition 2004/05, 2005/06 and 2006/06 sales of rental operations, MEUR Source: IRN, June 2005, June 2006 and June 2007

Market leader in the Nordic countries and in Eastern and Central Europe:

0 100 200 300 400 500

Loxam (F)

Ramirent (FIN)

Speedy Hire Plc (UK)

Hewden Stuart PLC (UK)

Cramo (FIN)

Algeco (F)

Select Plant Hire (UK)

Mediaco Lifting

Liebherr Mietpartner

A-Plant

2006

2005/06

2004/05

15/8/2007 Interim report 1-6/2007 11

Rank 8 worldwide

Worldwide competition 2006/2007 & 2005/2006 sales of rental operations, MEUR Source: IRN, June 2007

0 500 1000 1500 2000 2500

United Rentals (US)

Ashtead Group (US/UK)

RSC Equipment Rental (US)

Hertz Equipment Rental Corp (US)

Aggreco (US/UK)

Aktio Corp (JPN)

Loxam (FR)

Ramirent (FIN)

Speedy Hire Plc (UK)

Nikken Corp (JPN)

2006/2007

2005/2006

15/8/2007 Interim report 1-6/2007 12

Ramirent is targeting on profitable growth

0

100

200

300

400

500

600

1998 1999 2000 2001 2002 2003 2004 2005 2006

0,0 %

5,0 %

10,0 %

15,0 %

20,0 %

25,0 %

30,0 %

Finland Sweden Norway Denmark Europe EBIT (%)

Start of growth strategy

Acquisition of Bautas & Stavdal

Acquisition of Altima & Treffco

Acquisitions in Poland & Hungary

Entering Czech Republic, acquisitions in Sweden and

Finland

(MEUR)

15/8/2007 Interim report 1-6/2007 13

Financial targets

Ramirent is targeting on profitable growth and a strong financial position

The financial targets are as follows:– Earnings per share growth of at least

15% per annum– Return on invested capital annually of

at least 18%– Dividend payout ratio of at least 40%

of the annual net profit

0

100

200

300

400

500

600

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

0 %

5 %

10 %

15 %

20 %

25 %

30 %

35 %

Invested capital (1-12) Invested capital (1-6) ROI (%)

0,0

5,0

10,0

15,0

20,0

25,0

30,0

35,0

1998 1999 2000 2001 2002 2003 2004 2005 2006

0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %

90 %

Dividends Payout ratio (%)

0,0

0,1

0,2

0,3

0,4

0,5

0,6

0,7

0,8

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

-40 %

-10 %

20 %

50 %

80 %

110 %

140 %

EPS (1-12) EPS (1-6) EPS-change (%)

15/8/2007 Interim report 1-6/2007 14

Interim report 1-6/2007 – highlights Strong growth continued

– Net sales +30.1% 288.6 (221.8) m€.

Profitability improved – Operating profit (EBIT) +63.6% 62.9 (38.5) m€

• excluding property gains

– EBIT-margin improved to 21.8% (17.3%)

Finnish properties sold with gain of 2.4m€ EPS increased by 40% to EUR 0.42 (0.30)

Strong investments before peak season continued– Capital expenditure was 147.2 (93.3) m€

– Net debt increased temporarily to 279.6 (190.0) m€ and gearing to 99.4% (88.5%).

ROI was 28.4% (22.3%).

15/8/2007 Interim report 1-6/2007 15

Key figures

1) The figures are calculated on a rolling twelve month basis

1-6/2007 1-6/2006 Change 1-12/2006

Net Sales 288.6 221.8 30.1% 497.9

EBIT 65.5 43.9 49.4% 110.3

EBIT-% 22.7% 19.8% 22.2%

Return on invested capital (ROI),% 1) 28.4% 22.3% 28.1%

Return on equity (ROE)% 1) 37.7% 29.6% 34.3%

Net debt, (EUR million) 279.6 190.0 47.2% 186.3

Gearing, % 99.4% 88.5% 70.3%

Equity ratio, % 39.3% 41.0% 45.4%

Personnel, average 3,261 2,723 2,846

Personnel, end of period 3,484 2,829 3,016

Gross investments in non-current assets (EUR million) 147.2 93.3 176.5

Gross investments, % of net sales 51.0% 42.1% 35.4%

Earnings per share (EPS), diluted, EUR 0.42 0.30 40.0% 0.73

15/8/2007 Interim report 1-6/2007 16

Group

136,6

152,0

113,0

77,6

105,1

95,1

116,7

129,8

103,3

146,2

0,0

20,0

40,0

60,0

80,0

100,0

120,0

140,0

160,0

2005 2006 2007

Q1 Q2 Q3 Q4

Net sales development (MEUR), quarterly EBIT development (% of sales), quarterly

21,2%20,3%

26,2%

14,7%

6,3%

22,3%

14,0%

19,8%21,1%

14,8%

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

30,0%

2005 2006 2007

Q1 Q2 Q3 Q4

1) Excluding non-recurring profit amounting to 5.4 MEUR realized in Q1 2006 from divestment of properties in Sweden2) Excluding non-recurring profit amounting to 2.4 MEUR realized in Q2 2007 from divestment of properties in Finland

MEUR 4-6/07 4-6/06 Change 1-6/07 1-6/06 Change

Net sales 152.0 116.7 30.2% 288.6 221.8 30.1%

EBIT 33.9 23.1 46.8% 62.9 38.5 63.6%

EBIT-margin 22.3% 19.8% 21.8% 17.3%

(1(2 (2

15/8/2007 Interim report 1-6/2007 17

Finland

Acquisitions from 2006 together with high utilization boosted the growth during 1-6/2007 The Finnish construction market still strong The penetration is increasing Improved market position

20,7

27,1

34,6

24,828,2

15,5

21,524,423,0

29,4

0,0

5,0

10,0

15,0

20,0

25,0

30,0

35,0

40,0

2005 2006 2007

Q1 Q2 Q3 Q4

Net sales development (MEUR), quarterly

EBIT development (% of sales), quarterly

13,1%16,8%

23,6%20,5%

31,9% 33,2%

23,9%22,8% 23,0%

16,3%

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

30,0%

35,0%

2005 2006 2007

Q1 Q2 Q3 Q4


Net sales 34.6 24.4 41.8% 61.7 45.1 36.8%

EBIT 8.3 5.5 50.9% 14.7 9.0 63.3%

EBIT-margin 23.9% 22.8% 23.9% 20.0%


1) Excluding non-recurring profit amounting to 2.4 MEUR realized in Q2 2007 from divestment of properties in Finland

(1

15/8/2007 Interim report 1-6/2007 18

Sweden

23,5

29,9

35,8

26,724,8

31,630,2

38,1 36,731,2

0,0

5,010,0

15,0

20,025,0

30,0

35,040,0

45,0

2005 2006 2007

Q1 Q2 Q3 Q4


3,0%

12,5%

20,7%

7,9%

19,2%20,7%

14,4%

11,7% 11,8%

19,6%

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

2005 2006 2007

Q1 Q2 Q3 Q4

1) Excluding non-recurring profit amounting to 5.4 MEUR realized in Q1 2006 from divestment of properties


Net sales 36.7 31.2 17.7% 72.5 61.1 18.7%

EBIT 1) 7.6 4.5 68.9% 15.0 8.2 82.9%

EBIT-margin 20.7% 14.4% 20.7% 13.4%


Strong construction market in Sweden, specially in residential housing Increased market share in lifts after focused investments Improved efficiency

15/8/2007 Interim report 1-6/2007 19

Norway

29,2

34,8

29,233,0

22,0

33,3

24,3

28,9

26,028,5

0,0

5,0

10,0

15,0

20,0

25,0

30,0

35,0

40,0

2005 2006 2007

Q1 Q2 Q3 Q4



9,5%

18,7%18,5%

24,9%22,4%

25,0%

19,2%

22,9%

14,3%

21,8%

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

30,0%

2005 2006 2007

Q1 Q2 Q3 Q4


Net sales 33.3 28.9 15.2% 68.1 58.1 17.2%

EBIT 8.3 7.2 15.3% 16.1 12.7 26.8%

EBIT-margin 24.9% 25.0% 23.6% 21.9%


Strong market continues; lack of labour and materials limits the growth High utilization of capacity More aggressive competition on pricing Highest salary rise in Nordic countries (+5-6%)

15/8/2007 Interim report 1-6/2007 20

Denmark

8,2

14,012,5

10,210,711,611,3

14,012,5

14,1

0,0

2,0

4,0

6,0

8,0

10,0

12,0

14,0

16,0

2005 2006 2007

Q1 Q2 Q3 Q4


EBIT development (% of sales), quarterly1,2%

6,8%

10,4%8,4%

17,8%

14,2%

11,4%

18,3%

12,7%

17,4%

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

14,0%

16,0%

18,0%

20,0%

2005 2006 2007

Q1 Q2 Q3 Q4


Net sales 14.0 11.6 20.7% 26.5 21.8 21.3%

EBIT 2.5 1.3 85.0% 3.8 2.0 85.2%

EBIT-margin 17.8% 11.4% 14.2% 9.3%


Construction market slightly fading, specially residential housing but rental market still growing Improved productivity and market position Re-renting still on a high level, but decreasing after increased investments in own capacity

15/8/2007 Interim report 1-6/2007 21

Ramirent Europe

8,6

15,5

26,8

12,0

33,9

16,8

28,4

19,0

31,8

20,8

0,0

5,0

10,0

15,0

20,0

25,0

30,0

35,0

40,0

2005 2006 2007

Q1 Q2 Q3 Q4



7,1%

14,8%17,5%

33,5%

25,7% 25,6%22,7%25,4%

28,9%25,4%

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

30,0%

35,0%

40,0%

2005 2006 2007

Q1 Q2 Q3 Q4


Net sales 33.9 20.8 63.0% 60.7 36.3 67.0%

EBIT 8.7 4.7 84.3% 15.6 7.0 122.3%

EBIT-margin 25.6% 22.7% 25.6% 19.3%


Strong construction market growth in all Ramirent Europe countries In Hungary the construction market is fading due to excessive budged deficit High demand and utilization of equipment Heavy investments in new capacity

15/8/2007 Interim report 1-6/2007 22

10

Ramirent markets

Source: Euroconstruct June 2007

145

65

5

249

23

529

5

27

3828

10 11

48

7

1 2

2

2

2

3

3

3

Finland

Sweden

Norway

Denmark

Poland

Hungary

Czech Republic

Estonia

Latvia

Lithuania

Ukraine

Russia

1710

15/8/2007 Interim report 1-6/2007 23

Source: Euroconstruct, June 2007

Construction output in Baltic Sea Area, Eastern Europe and Russia

15/8/2007 Interim report 1-6/2007 24

Market development in Ramirent countries

Source: Euroconstruct June 2006 and *National construction association

Construction volumes2006

(MEUR) 2007F 2008F 2009F

Finland 24,110 *3.5% *3,0% -0.5%

Sweden 23,061 *7.0% *3.0% 2.2%

Norway 28,660 5.9% -0.1% 0.4%

Denmark 26,548 *0.5% *-0.7% 2.3%

Europe 89,680

Poland 27,295 10.6% 11.4% 14.0%

Hungary 10,824 2.0% 3.0% 5.0%

Estonia 2,350 15.0% 10.0% 7.0%

Latvia 2,150 16.0% 12.0% 8.0%

Lithuania 2,600 13.0% 6.0% 5.0%

Ukraine 8,000 7.0% 5.0%

Moscow + St. Petersburg 19,000

(Russia) 65,000 8.0% 7.0%

Czech Republic 17,461 6.1% 5.8% 6.2%

15/8/2007 Interim report 1-6/2007 25

Machinery sold directly to rental companies as percentage of total machinery sales (Source: International Rental News/Kaplan)

0% 20% 40% 60% 80% 100%

Europe (ex. UK) 2010E

Europe (ex. UK)

Poland

Baltics

Finland

Norway

Denmark

Sweden

UK

Penetration of machinery rental services in Europe

15/8/2007 Interim report 1-6/2007 26

Outlook 2007 The good market conditions expected to continue 2007

– Nordic countries:• Ramirent estimates total construction market will grow at the rate of 3-4% • The backlog of the largest Nordic construction companies has grown • The scarce supply of labour and building material may limit the growth.

– Central and Eastern European markets• Ramirent estimates a further solid growth.

Rental penetration rate is expected to further rise – Ramirent estimates that the machinery rental markets will grow faster than

the construction markets in 2007.

Ramirent is well positioned– Heavy investments in new capacity – Ramirent will also continue to search for bolt-on acquisitions– Ramirent expects to clearly exceed its financial targets.

Ramirent OyjP.O.BOX 116Äyritie 12 A FI-01511 Vantaa+358 20 750 200www.ramirent.com

Further information: Kari Kallio, CEO tel: +358 40 716 1832 e-mail: [email protected]

Heli Iisakka, CFOtel: +358 40 544 6833e-mail: [email protected]

15/8/2007 Interim report 1-6/2007 28

(EUR 1,000) 4-6/07 4-6/06 1-6/07 1-6/06 1-12/06

Net sales 152,046 116,718 288,632 221,823 497,858 Other operating income 2,887 256 3,144 5,985 6,907

TOTAL 154,933 116,974 291,776 227,808 504,765

Materials and services -41,177 -34,953 -80,311 -67,508 -149,457

Employee benefit expenses -39,207 -30,382 -74,506 -60,120 -125,742

Depreciation -19,251 -14,612 -36,690 -28,490 -61,243

Other operating expenses -18,814 -13,952 -34,756 -27,839 -58,003

OPERATING PROFIT 36,484 23,075 65,513 43,851 110,320 Financial income 1,849 1,191 3,740 2,656 4,404 Financial expenses -3,442 -3,593 -7,256 -6,447 -11,781

PROFIT BEFORE TAXES 34,891 20,673 61,997 40,060 102,943

Income taxes -8,701 -4,468 -15,743 -8,085 -23,787

NET PROFIT FOR THE PERIOD 26,190 16,205 46,254 31,975 79,156

Earnings per share (EPS), diluted, EUR 0.42 0.30 0.73

Earnings per share (EPS), non-diluted, EUR 0.42 0.30 0.74

Income statement

Includes non-recurring profit amounting to 5.4 MEUR realized in Q1 2006 from divestment of properties in Sweden and also non-recurring profit amounting to 2.4 MEUR realized in Q2 2007 from divestment of properties in Finland

15/8/2007 Interim report 1-6/2007 29

Balance sheet, Assets

(EUR 1,000) 30.6.2007 30.6.2006 31.12.2006

NON-CURRENT ASSETS Tangible assets 489,934 348,464 384,486

Investments in process 3,044 - - Goodwill 76,457 73,122 76,112 Other intangible assets 1,385 1,251 1,527 Available-for-sale investments 95 412 125 Deferred tax assets 1,352 1,710 1,200

NON-CURRENT ASSETS, TOTAL 572,267 424,959 463,450 CURRENT ASSETS Inventories 20,126 15,728 17,767 Trade and other receivables 120,788 82,702 97,304 Cash and cash equivalents 1,565 1,460 1,112 Non-current assets held for sale 1,668 4,632

CURRENT ASSETS, TOTAL 144,147 99,890 120,815 TOTAL ASSETS 716,414 524,849 584,265

15/8/2007 Interim report 1-6/2007 30

Balance sheet, Equity and liabilities(EUR 1,000) 30.6.2007 30.6.2006 31.12.2006

EQUITY Share capital 11,660 11,547 11,625 Share premium account 126,395 124,284 126,011 Retained earnings 143,064 78,934 127,205

PARENT COMPANY SHAREHOLDERS’ EQUITY 281,119 214,765 264,841 Minority interests 89 63 83

EQUITY, TOTAL 281,208 214,828 264,924 NON-CURRENT LIABILITIES Deferred tax liabilities 33,365 22,552 33,135 Pension obligations 8,471 7,892 8,090 Provisions 1,159 1,186 Interest-bearing liabilities 163,415 171,774 169,769

NON-CURRENT LIABILITIES, TOTAL 206,410 202,218 212,180 CURRENT LIABILITIES

Trade payables and other liabilities 110,529 88,075 88,962 Provisions 541 - 581 Interest-bearing liabilities 117,726 19,728 16,936

Liabilities connected to non-current assets held for sale - - 682

CURRENT LIABILITIES, TOTAL 228,796 107,803 107,161 LIABILITIES, TOTAL 435,206 310,021 319,341 TOTAL EQUITY AND LIABILITIES 716,414 524,849 584,265

15/8/2007 Interim report 1-6/2007 31

Condensed cash flow statement(EUR million) 1-6/07 1-6/06 1-12/06

Cash flow from operating activities 71.5 62.0 133.9

Cash flow from investing activities -132.2 -71.8 -140.7

Cash flow from financing activities Proceeds from share subscriptions 0.4 1.6 2.5 Borrowings/repayments of short-term debt -26.0 Borrowings of long-term debt 119.2 24.4 20.2 Dividends paid -32.5 -16.1 -16.1

Cash flow from financing activities 61.1 9.9 6.6

Net change in cash and cash equivalents 0.5 0.1 -0.2 Cash and cash equivalents at the beginning of the period 1.1 1.3 1.3 Translation difference on cash and cash equivalents 0.0 0.0 0.0

Net change in cash and cash equivalents 0.5 0.1 -0.2 Cash and cash equivalents at the end of the period 1.6 1.4 1.1

15/8/2007 Interim report 1-6/2007 32

Net debt and gearing

0

50

100

150

200

250

300

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

0 %

20 %

40 %

60 %

80 %

100 %

120 %

140 %

160 %

180 %

Net debt (1-12) Net debt (1-6) Gearing (%)

MEUR

15/8/2007 Interim report 1-6/2007 33

Equity and equity ratio

0

50

100

150

200

250

300

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

0 %

10 %

20 %

30 %

40 %

50 %

60 %

Equity (1-12) Equity (1-6) Equity ratio (%)

MEUR

15/8/2007 Interim report 1-6/2007 34

Ten largest shareholders on 30 June, 2007

Shares % of shares and

votes

Nordstjernan AB 24,849,080 22.91%

Oy Julius Tallberg Ab 11,258,008 10.38%

Varma Mutual Pension Insurance Company 2,850,016 2.63%

Ilmarinen Mutual Pension Insurance Company 2,322,828 2.14%

Odin Norden 2,085,460 1.92%

Odin Forvaltnings AS 1,319,932 1.22%

Odin Europa SMB 887,180 0.82%

Fondita Nordic Small Cap Placfond 700,000 0.65% Mutual Pension Insurance Company Eläke-Fennia 686,400 0.63%

Veritas Pension Insurance Company Ltd. 666,800 0.61%

Nominee-registered shareholders 45,152,348 41.63%

Other shareholders 15,691,264 14.47%

Total 108,469,316 100.0%

15/8/2007 Interim report 1-6/2007 35

Latest stock price

Interim report 1 January – 30 June, 2007 Kari Kallio President and CEO.

Documents

Transcript of Interim report 1 January – 30 June, 2007 Kari Kallio President and CEO.