Outlook for 2015

4 November 2015 Interim report Q3/2015

Ramirent outlook for full year 2015 unchanged

Ramirent expects the market picture for 2015 to remain mixed, with challenging market conditions especially in Finland and Norway. We expect full-year 2015 net sales and EBITA margin to be similar to the level of 2014 when measured in local currencies.


Market outlook by segment

Finland

Ramirent expects market conditions for equipment rental to remain challenging in Finland in the fourth quarter of 2015. According to a forecast published by European Rental Association (ERA) in October 2015, the Finnish equipment rental market is expected to increase by 1.7% this year. According to a forecast published by Finnish Construction Industries (RT) in October 2015, the Finnish construction market is expected to decline by 1% in 2015. Demand for renovation is estimated to increase due to ageing residential stock and government assistance for renovation projects. The total value of renovation is estimated to exceed the value of new construction in 2015. Weak market conditions are expected to continue in the new residential construction sector especially outside the capital city region. Demand for equipment rental in non-residential construction is supported by start-ups of certain large commercial and industrial building projects. Infrastructure construction is expected to decrease in 2015 due to the completion of large projects and a low level of new investments. The Confederation of Finnish Industries (EK) expects full-year industrial investments in the general manufacturing sector as well as in the energy sector to increase in 2015.

Sweden

Ramirent expects the demand for equipment rental to remain favourable in Sweden in the fourth quarter of 2015 mainly due to the high activity in all construction sectors. According to a forecast published by European Rental Association (ERA) in October 2015, the Swedish equipment rental market is expected to grow by 1.0% in 2015. According to a forecast published by Swedish Construction Federation (BI) in October 2015, construction investments are expected to grow by 8% in 2015. Market conditions are strong especially in many of Sweden’s major cities. New residential start-ups will remain at a high level due to a chronic housing shortage in the market. Non-residential construction is expected to increase supported by growth in office and commercial building projects. The government’s transport infrastructure plan, approved in 2014, will fuel activity within infrastructure construction especially in the Stockholm and Gothenburg areas also in the fourth quarter of the year. Due to a continuously expanding and ageing building stock, renovation is expected to grow in 2015. Demand for equipment rental in the industrial sector is anticipated to remain fairly stable in Sweden.

Norway

Ramirent expects market conditions for equipment rental to remain challenging in Norway in the fourth quarter of 2015 due to macroeconomic uncertainty connected to the low oil price. According to a forecast published by European Rental Association (ERA) in October 2015, the Norwegian equipment rental market is expected to decline by 1.5% this year. According to a forecast published by Prognosesenteret in October 2015, the Norwegian construction market is expected to grow by 1.9% in 2015. Infrastructure construction supported by government stimulus measures will be the main growth driver fuelled by several road, railway and metro projects. Residential construction is estimated to remain at the previous year’s level in 2015. Non-residential construction sector is expected to increase supported by several public sector projects. Renovation construction is expected to increase in 2015. According to an estimate by Statistics Norway, investments in the oil and gas sector are estimated to decline by 15.1% in 2015.


Denmark

Ramirent expects market conditions for equipment rental to be balanced in Denmark in the fourth quarter of 2015. According to a forecast published by European Rental Association (ERA) in October 2015, the Danish equipment rental market is expected to grow by 1.4% this year. According to a forecast published by Danish Construction Industry (DB) in October 2015, the Danish construction market is expected to increase by 3.5% in 2015. Demand in the renovation market is expected to soften while new residential construction is estimated to increase backed by a healthy underlying demand in the major cities. In 2015, public investments are expected to fuel infrastructure construction and building activity especially in the health and education sector. Activity in the industrial sector is expected to support the demand for equipment rental also in the fourth quarter of 2015.

The Baltics

Ramirent expects the overall demand in the Baltic equipment rental market to remain balanced in the fourth quarter of 2015. According to a forecast published by Euroconstruct in June 2015, the total construction market in the Baltics is expected to decrease by 2.5% in 2015. In Estonia the construction market is expected to decline by 4% in 2015. The main construction projects will be located in the capital city region and southern parts of Estonia. The Latvian construction market is estimated to decline by 6% in 2015. Residential construction is expected to remain stable, but construction activity in the non-residential sector will slow down due to the continued economic uncertainty caused by the Ukrainian crisis. In Lithuania the construction market is expected to grow by 1% in 2015. Increasing residential construction and high activity in renovation will be the main growth drivers in the Lithuanian market. EU funded projects are expected to start mainly in 2016, supporting especially infrastructure construction and renovation in 2016.

Russia and Ukraine (through Joint Venture Fortrent)

The decline in the oil price has a negative impact on the economy and construction activity in Russia. The volatility of the rouble and the Russian financial market hinder economic growth in Russia. EU and US economic sanctions against Russia due to the Ukrainian crisis remain in place, creating further uncertainty over the development of the Russian economy. The weakened situation in the construction market affects the demand for equipment rental services in Russia in 2015. According to the forecast published by Forecon in June 2015, the Russian construction market will decrease by approximately 6% in 2015. All construction sub-sectors are forecast to decline. In Ukraine, construction activity has slowed down considerably and market conditions are expected to remain challenging throughout 2015.

Europe Central (Poland, the Czech Republic and Slovakia)

Ramirent expects the overall demand in Europe Central equipment rental markets to remain favourable in the fourth quarter of 2015. According to a forecast published by European Rental Association (ERA) in October 2015, the Polish equipment rental market is expected to grow by 2.6% this year. According to a forecast published by Euroconstruct in June 2015, the Polish construction market is estimated to grow by 9.7% in 2015. Infrastructure construction projects, funded largely by EU, will be the primary driver of growth in the construction sector. Market conditions are expected to be favourable in residential construction as new start-ups are forecast to increase clearly. Construction activity is expected to continue to pick up in the non-residential sector supported especially by construction of industrial buildings. Increasing renovation as well as high project activity in the power plant and wind power sector is estimated to support the equipment rental market. In the Czech Republic and Slovakia, the construction market is expected to grow by 4.3% and by 2.1% respectively in 2015. Demand for equipment rental is expected to remain strong especially in the construction sector.

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6 August 2015 Interim report Q2/2015

Ramirent outlook for full year 2015 unchanged

Ramirent expects the market picture for 2015 to remain mixed, with challenging market conditions in especially Finland and Norway. We expect full-year 2015 net sales and EBITA margin to be similar to the level of 2014 when measured in local currencies.


Market outlook by segment

Finland

Ramirent expects market conditions for equipment rental to remain challenging in Finland in the second half of the 2015. According to a forecast published by Euroconstruct in June 2015, the Finnish construction market is expected to be flat in 2015. Demand for renovation is estimated to increase due to ageing residential stock and government assistance for renovation projects. Weak market conditions are expected to continue in the new residential construction sector especially outside the capital city region. Demand for equipment rental in non - residential construction is supported by start-ups of certain large commercial and industrial building projects. The new government is planning to increase infrastructure spending in order to stimulate the stagnant economy in the second half of 2015. The Confederation of Finnish Industries (EK) expects full-year industrial investments in the general manufacturing sector as well as in the energy sector to increase in 2015.

Sweden

Ramirent expects the demand for equipment rental to remain favourable in Sweden in 2015, driven by high activity in all construction sectors. According to a forecast published by Euroconstruct in June 2015, the Swedish construction market is expected to grow by 5.0% in 2015. The market conditions are strong especially in many of Sweden’s major cities. New residential start-ups will remain at a high level due to continuous housing shortage in the market. Non - residential construction is expected to increase supported by growth in office and commercial building projects. The government’s transport infrastructure plan, approved in 2014, will fuel activity within infrastructure construction especially in the Stockholm and Gothenburg areas also in the second half of the year. Due to a continuously expanding and ageing building stock, renovation is expected to grow in 2015. Demand for equipment rental in the industrial sector is anticipated to remain fairly stable in Sweden.

Norway

Ramirent expects market conditions for equipment rental to remain challenging in Norway in the second half of 2015 due to macroeconomic uncertainty connected to the low oil price. According to a forecast published by Euroconstruct in June 2015, the Norwegian construction market is expected to grow by 2.6% in 2015. Infrastructure construction supported by government stimulus measures will be the main growth driver fuelled by several road, railway and metro projects. Residential construction is estimated to remain at the previous year’s level in 2015. Non-residential construction sector is expected to increase supported by public sector projects. Renovation construction is expected to increase in 2015. According to an estimate by Statistics Norway, investments in the oil and gas sector are estimated to decline clearly in 2015.

Denmark

Ramirent expects market conditions for equipment rental to be balanced in Denmark in the second half of 2015 . According to a forecast published by Euroconstruct in June 2015, the Danish construction market is expected to increase by 1.2% in 2015. Demand in the renovation market is expected to soften clearly while new residential construction is estimated to remain stable backed by a healthy underlying demand in the major cities. In the second half of 2015, public investments are expected to increase infrastructure construction and building activity in the health and education sector. Activity in the industrial sector is expected to support the demand for equipment rental in the second half of the year.

The Baltics

Ramirent expects the overall demand in the Baltic equipment rental market to remain balanced in the second half of 2015. According to a forecast published by Euroconstruct in June 2015,the total c onstruction market in the Baltics is expected to decrease by 2.5% in 2015. In Estonia the construction market is expected to decline by 4% in 2015. The main construction projects will be located in the capital city region and southern parts of Estonia. The Latvian construction market is estimated to decline by 6% in 2015. Residential construction is expected to remain stable, but construction activity in the non-residential sector will slow down due to the continued economic uncertainty caused by the Ukrainian crisis. In Lithuania the construction market is expected to grow by 1% in 2015. Increasing residential construction and high activity in renovation will be the main growth drivers in the Lithuanian market. Several EU funded projects are expected to start in the second half of 2015, supporting especially infrastructure and renovation construction in the Baltics.

Russia and Ukraine (Fortrent Group)

Ramirent expects the demand for equipment rental to be modest in Russia in 2015. The low oil price is impacting negatively on the economy and construction markets. The volatility of the rouble and the Russian financial market hinder economic growth in Russia. EU and US economic sanctions against Russia due to the Ukrainian crisis remain in place, creating further uncertainty over the development of the Russian economy. According to the forecast published by Euroconstruct in June 2015, the Russian construction market is estimated to decrease by approximately 2% in 2015. Building construction is estimated to remain close to the previous year’s level supported by large ongoing projects but infrastructure construction is expected to decline clearly. In Ukraine, construction activity has slowed down considerably and market conditions are expected to remain challenging throughout the 2015.

Europe Central

Ramirent expects the overall demand in Europe Central equipment rental markets to remain favourable in the second half of 2015. According to a forecast published by Euroconstruct in June 2015, the Polish construction market is estimated to grow by 9.7% in 2015. Infrastructure construction projects, funded largely by EU, will be the primary driver of growth in the construction sector. Market conditions are expected to be favourable in residential construction as new start-ups are forecasted to increase clearly. Construction activity is expected to continue to pick up in the non-residential sector supported especially by construction of industrial buildings. Increasing renovation as well as high project activity in the power plant and wind power sector is estimated to support the equipment rental market. In the Czech Republic and Slovakia, the construction market is expected to grow by 4.3% and by 2.1% respectively in 2015. Demand for equipment rental is expected to remain strong especially in the construction sector.




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