Mission

We simplify business by delivering Dynamic Rental Solutions™.

Vision

To be leading and most progressive equipment rental solutions company in Europe, setting the benchmark for industry performance and customer service.

Strategy

Securing profitability and capturing opportunities

Year 2009 was extraordinary in the European equipment rental sector. Demand declined substantially due to lower construction and industrial activities. Despite an overall drop of 29% in turnover, Ramirent succeeded in generating strong cash flow and positive profit. Now Ramirent is in a good position to capture market opportunities that will help it to deliver sustainable profit growth in the years to come.

Our vision is to be the leading and most progressive equipment rental solutions company in Europe, setting the benchmark for industry performance and customer service. This long-term vision gives us the direction for developing the company while the Ramirent values—open, progressive and engaged—guide us in our daily decisions. Our vision is to be the leading and most progressive equipment rental solutions company in Europe, setting the benchmark for industry performance and customer service. This long-term vision gives us the direction for developing the company while the Ramirent values—open, progressive and engaged—guide us in our daily decisions.

Ramirent offers Dynamic Rental Solutions ^TM that simplify our customers’ business. Renting is an attractive and cost efficient alternative that allows customers to focus on their core activities.  In the downturn, our Dynamic Rental Solutions ^TM have enabled our customers to have the right capacity of reliable, eco-efficient and safety compliant equipment. Ramirent offers Dynamic Rental Solutions ^TM that simplify our customers’ business. Renting is an attractive and cost efficient alternative that allows customers to focus on their core activities.  In the downturn, our Dynamic Rental Solutions ^TM have enabled our customers to have the right capacity of reliable, eco-efficient and safety compliant equipment.

Ramirent’s concept is to be a general rental company with an extensive product range. Our offering spans from single products to managing the entire fleet at customer sites. Rental solutions complement our equipment offering and are growing in importance. Our broad offering provides our customers with comprehensive rental solutions from a single point of contact. This benefits our customers and differentiates Ramirent from most of its competitors.

Ramirent currently operates in 13 European countries. We are the market leader in the Nordic region and in most of the Central and Eastern European countries where we are present. Ramirent serves customers in construction, other industries, public sector and private households. Through our extensive outlet network we are close to our customers and can fulfil a broad range of local customer requirements.Ramirent currently operates in 13 European countries. We are the market leader in the Nordic region and in most of the Central and Eastern European countries where we are present. Ramirent serves customers in construction, other industries, public sector and private households. Through our extensive outlet network we are close to our customers and can fulfil a broad range of local customer requirements.

We value our customers and offer industry leading customer service. We have  decentralised accountability that ensures a strong local customer focus and developing long-term customer relationsips. Additionally, we leverage group-wide synergies in fleet management, a common IT platform and shared support processes.

Several drivers support long-term profitable growth of the rental business. Increasing rental penetration among construction and other industrial sectors as well as an increasing trend to outsource equipment fleets and non-core activities drive overall demand. Current fragmentation of the equipment rental industry gives opportunities for industry consolidation.  Moreover, the long-term increase in the construction and industrial volumes provides further growth opportunities.

Actions in 2009

After a strong growth phase, Ramirent entered a stabilisation and positioning phase in 2009. The focus was on safeguarding cash flow and profitability. Although a cyclical and capital-intensive sector, one of the strengths of this business is that it is cash generative and cash flow is reinforced by reduced spending in a downturn. In 2009, we generated a healthy cash flow which enabled us to amortise net debt by EUR 100 million. After several years of high investments in fleet capacity, capital expenditures were reduced to a minimum in response to weaker market conditions. Fleet management focused on optimising utilisation and on sale of excess fleet capacity and older equipment. The cost saving program initiated in the third quarter of 2008 progressed according to plan and delivered a decrease in fixed costs of EUR 75 million.

Additional efforts to reduce risk and increase flexibility were started on many levels. A new Group management structure was introduced in January 2009 to shorten decision making paths and drive synergies across segments. Cross-border cooperation was intensified to enable flexible fleet re-allocation and improved fleet utilisation. Furthermore, Ramirent has secured financing and ensured that contingency plans are in place in all countries in the event of a further market decline. Maintaining price discipline remains a high priority.

Through these actions, Ramirent is now well positioned to capture market opportunities and drive the key initiatives required to reach its vision and strategic objectives.

Strategic objectives for 2010 and beyond

In 2010 and beyond, Ramirent will focus on capturing external opportunities, on developing a one-company structure—a “Ramirent platform”—and on reducing its risk level through a more balanced business portfolio and a strengthened financial position. Our strategic agenda will ensure continuous strong emphasis on safeguarding cash flow and profitability while building a platform for capitalising on future profitable growth opportunities. Our extensive outlet network has remained intact through the downturn and we have a young equipment fleet enabling us to respond to an increase in demand without any larger investment needs in the near-term.

Operational excellence through common platform for selected processes

Ramirent will continue to have a strong focus on cost efficiency. Ramirent will develop a common "Ramirent platform" for selected processes. This provides economies of scale e.g. through optimal fleet management and co-ordinated sourcing efforts.

Development of group wide IT platform and support processes will assist to realise the synergies from working as one company. In the customer front, Ramirent will maintain its decentralised accountability and strong local orientation to serve the varying needs of its local customers.

Reduced risk level through more balanced business portfolio

Ramirent aims for a well diversified portfolio of customers, products and markets. This will reduce the the company's risk level. To do this, focus is to reduce the dependency on construction sector by growing the share of customers in industries outside construction. Ramirent will have broad portfolio of product and service offerings, to fulfil different needs of our customers.

Ramirent will continue building a well-diversified geographic market presence to reduce country specific risk. In addition, Ramirent aims to lower its risk level by transferring fixed costs, e.g. by outsourcing non-core activities.

Sustainable top-line growth driven by organic growth and selected acquisitions

Ramirent will capture external opportunities for profitable growth by developing its offering and its customer and market portfolios. Ramirent pursues market specific opportunities to strengthen its product offering. The aim is to be general rental company and offer equipments and solutions which fit the local markets. Safety and environment aspects are emphasised in product choices and solution concepts.

Ramirent will actively focus on widening its customer base, especially through strengthened focus on industries outside construction and the public sector. Ramirent will seek growth from an increasing trend to outsource equipment fleets. Growth could be accelerated with selected acquisitions to strengthen Ramirent's geographic presence and offering. Opportunities to enter new markets are assessed to accelerate profitable growth in the future.

Growth drivers

Despite the recent decline in demand, several drivers support the long-term growth of the equipment rental business.

Rental penetration

In Europe, on average 30% of all new equipment is sold to rental companies.  This is a low level compared to mature rental markets such as the UK with an 80% rental penetration. In the short term, the downturn may have decreased customers’ need to rent due to the lower utilisation of their own fleets. In the long term, we are expecting penetration to increase in Europe as users recognise the advantages of renting. Ramirent is well positioned in markets with favourable long term growth opportunities.

Outsourcing

There is a general trend among companies towards outsourcing non-core activities to release capital and improve flexibility. These benefits of outsourcing are particularly important during a downturn, and the trend is expected to continue both in the short and long term. Ramirent is experienced in tailor-making solutions for customers seeking to outsource.

Rental related solutions

Customers are increasingly interested in giving a broader responsibility in their projects to rental companies. This is driven by increasing requirements for having fleet well maintained, operated in the right way and delivered on-time to the site. Ramirent is experienced in taking on a broad responsibility and managing the entire fleet capacity and related services on a project site.

Market consolidation

The equipment rental industry is highly fragmented. The market downturn is challenging for many rental firms, and this may affect the industry structure in the short term. Ramirent’s strong market positions and financial strength enables it to play an active role in the market consolidation and act opportunistically while still maintaining a strong financial position.

Long-term growth in emerging construction markets

The construction volumes per capita in Ramirent’s Central and Eastern European markets are still at a low level compared to Western Europe. This indicates a long-term growth potential for the equipment rental sector in these markets.