Ramirent Plc's comparative financial information for 2017 according to function based statement of income

Ramirent Plc      Stock Exchange Release    May 7, 2018 at EET 10.15 am

Ramirent announced in its stock exchange release on November 30, 2017 that it will introduce a function based structure in its consolidated statement of incomeFunction based reporting provides more accurate information for analyzing the Group's profitability development. In addition, Ramirent has changed its calculation method of both the return on capital employed and the return on equity key figures. The changes are implemented as of January 1, 2018.

Function based statement of income
In the function based statement of income, costs directly associated with generating revenues are included in cost of sales. Such cost include direct material costs and employee benefit expenses as well as indirect costs that can be attributed to generating revenue, such as depreciation and amortization of assets used by the operations.

The financial information according to the function based structure for the financial year 2017 is provided below and as an attachment in an excel file.

Ramirent Group's quarterly consolidated statement of income for 2017 according to function based structure
  Q1 Q2 Q3 Q4 Full year
(MEUR) 2017 2017 2017 2017 2017
NET SALES 164.6 174.1 184.7 200.3 723.7
Cost of sales -128.8 -132.6 -131.9 -156.5 -549.9
GROSS PROFIT 35.8 41.5 52.8 43.7 173.8
           
Other operating income 0.2 0.3 0.2 1.6 2.2
Selling, general and administrative costs -21.5 -21.9 -21.6 -22.6 -87.7
Share of result of associates and join ventures 0.1 -0.1 0.6 0.3 1.0
           
EBIT 14.6 19.8 32.0 23.0 89.3
           
Financial income 2.0 2.7 1.1 2.9 8.7
Financial expenses -5.6 -6.3 -2.7 -6.5 -21.1
Total financial income and expenses -3.6 -3.6 -1.6 -3.5 -12.4
EBT 10.9 16.2 30.4 19.5 77.0
Income taxes -2.4 -3.6 -5.8 -1.7 -13.5
RESULT FOR THE PERIOD 8.5 12.6 24.6 17.7 63.5

Calculation of return on capital employed (ROCE) and return on equity (ROE)
In addition, Ramirent has changed its calculation method of both comparable and reported return on capital employed and return on equity as of January 1, 2018. The new calculation method reduces the effect of seasonal variation and thereby provides improved information on the Group's and segments' profitability development. The capital/equity components of the key figures are calculated as an average of last five (5) quarter end values. Previously these were calculated using the average of the opening and closing balance.

Return on capital employed, ROCE %: EBIT x 100 (rolling 12 months)
Group or segment capital employed (average of last 5 quarter end values)
       
Comparable return on capital employed, ROCE %: (EBIT - items affecting comparability in EBIT) x 100 (rolling 12 months)
Group or segment capital employed - items affecting comparability in capital employed ( average of last 5 quarter end values)
Return on equity, ROE %:

 
Result for the period  x 100 (rolling 12 months)     
Total equity ( average of last 5 quarter end values)
Comparable return on equity, ROE %:

 

(Result for the period - items affecting comparability) x 100 (rolling 12 months) 

Total equity - items affecting comparability in equity ( average of last 5 quarter end values)

 The comparative figures have been restated accordingly and are presented in the table below and attached as an excel file.

Return on capital employed Mar 31, Jun 30, Sep 30, Dec 31,
(ROCE %) by segment 2017 2017 2017 2017
Sweden 13.3% 13.4% 17.0% 17.3%
Finland 18.3% 17.9% 17.8% 18.3%
Eastern Europe 11.7% 14.5% 17.5% 18.9%
Norway -1.0% -0.7% 5.7% 8.2%
Denmark 6.5% 6.0% 5.6% -0.3%
Group 7.6% 8.4% 13.3% 13.8%
         
Comparable return on capital employed Mar 31, Jun 30, Sep 30, Dec 31,
(ROCE %) by segment 2017 2017 2017 2017
Sweden 14.5% 14.6% 17.0% 17.3%
Finland 17.5% 17.4% 17.8% 18.3%
Eastern Europe 12.1% 14.9% 17.9% 18.9%
Norway 4.2% 4.4% 5.6% 7.0%
Denmark 6.5% 6.0% 5.6% 7.9%
Group 10.8% 11.4% 13.1% 13.9%
         
Return on equity (ROE %) Mar 31, Jun 30, Sep 30, Dec 31,
  2017 2017 2017 2017
Group 9.9% 11.3% 20.5% 22.0%
         
Comparable return on equity (ROE %) Mar 31, Jun 30, Sep 30, Dec 31,
  2017 2017 2017 2017
Group 15.3% 16.4% 20.1% 22.0%

FURTHER INFORMATION:
Pierre Brorsson, CFO, Ramirent Plc, tel. +46 8 624 9541

RAMIRENT is a leading rental equipment group combining the best equipment, services and know-how into rental solutions that simplify customer's business. Ramirent serves a broad range of customer sectors including construction, industry, services, the public sector and households. In 2017, Ramirent Group sales totaled EUR 724 million. The Group has 2,820 employees in 293 customer centers in 10 countries in northern and eastern Europe. Ramirent is listed on the NASDAQ Helsinki (RMR1V). Ramirent - More than machines®.

DISTRIBUTION:
NASDAQ Helsinki
Principal media
www.ramirent.com


Function based income statement and ROCE Q1_Q4 2017

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