Ramirent Plc's Financial Statements Bulletin for January-December 2016: Growth and profit improvement in the fourth quarter, full-year result impacted by one-offs

Vantaa, Finland, 2017-02-17 08:00 CET (GLOBE NEWSWIRE) --

Ramirent Plc      Stock Exchange Release      17 February 2017 at 9:00 am EET

This stock exchange release is a summary of Ramirent Plc's Financial Statements Bulletin 2016. The complete report is attached to this release in pdf format and is also available on Ramirent's website at www.ramirent.com.

Note! Figures in brackets, unless otherwise indicated, refer to the corresponding period a year earlier.

 OCTOBER-DECEMBER 2016 IN BRIEF

· Net sales EUR 180.5 (170.5) million, up by 5.9% or 7.3% at comparable exchange rates

· Comparable EBITA EUR 21.1 (16.8) million or 11.7% (9.9%) of net sales

· Reported EBITA EUR 21.2 (16.8) million or 11.7% (9.9%) of net sales

· Gross capital expenditure EUR 47.0 (42.0) million

· Cash flow after investments EUR 11.1 (5.3) million

JANUARY-DECEMBER 2016 IN BRIEF

· Net sales EUR 665.2 (635.6) million, up by 4.6% or 6.1% at comparable exchange rates

· Comparable EBITA EUR 68.1 (63.4) million or 10.2% (10.0%) of net sales

· One-offs incl. asset write-downs and reorganization costs EUR -20.6 million

· Reported EBITA EUR 59.2 (66.8) million or 8.9% (10.5%) of net sales

· Gross capital expenditure EUR 190.8 (139.2) million

· Cash flow after investments EUR -20.7 (-6.3) million

· The Board of Directors proposes a dividend of EUR 0.40 (0.40) per share, paid in two installments

RAMIRENT'S GUIDANCE FOR 2017

In 2017, Ramirent's comparable EBITA is expected to increase from the level in 2016.

KEY FIGURES (MEUR and %) 10-12/16 10-12/15 CHANGE 1-12/16 1-12/15 CHANGE
Net sales 180.5 170.5 5.9% 665.2 635.6 4.6%
EBITDA 47.9 43.7 9.5% 169.0 168.1 0.6%
% of net sales 26.5% 25.7%   25.4% 26.4%  
Comparable EBITA 21.1 16.8 25.5% 68.1 63.4 7.4%
% of net sales 11.7% 9.9%   10.2% 10.0%  
Reported EBITA 21.2 16.8 26.1% 59.2 66.8 -11.3%
% of net sales 11.7% 9.9%   8.9% 10.5%  
Earnings per share (EPS), EUR 0.12 0.11 9.4% 0.20 0.36 -43.4%
Gross capital expenditure 47.0 42.0 11.9% 190.8 139.2 37.1%
Cash flow after investments 11.1 5.3 108.4% -20.7 -6.3 n/a
Capital employed at the end of period       645.0 600.5 7.4%
Comparable ROCE %       9.3% 9.4%  
Reported ROCE %       6.2% 10.0%  
Comparable ROE %       12.1% 10.9%  
Reported ROE %       7.2% 12.1%  
Net debt       345.8 280.9 23.1%
Net debt to EBITDA ratio       2.0x 1.7x 22.4%
Personnel (FTE)       2,686 2,654 1.2%

IMPACTS OF NEW ESMA GUIDELINES
The European Securities and Markets Authority (ESMA) has issued new guidelines regarding alternative performance measures which were to be implemented at the latest in the second quarter of 2016. Due to the new guidelines, Ramirent's performance measure "EBITA excluding non-recurring items" was replaced with "comparable EBITA" as of the first quarter of 2016. The content of adjustments equals items previously disclosed as non-recurring items including incomes and expenses arising activities that amend Ramirent's business operations or are incurred outside its normal course of business such as restructuring costs, impairments, significant write-downs of assets and significant gains or losses on sale of assets and businesses. Comparable EBITA is disclosed to improve comparability between reporting periods.

RAMIRENT'S CEO TAPIO KOLUNSARKA:

"For the full year of 2016, our sales grew at comparable exchange rates by 6.1% and comparable EBITA improved to EUR 68.1 (63.4) million or 10.2% (10.0%) of net sales. However, our full-year result was impacted by one-off asset write-downs and reorganization costs related to profitability improvement actions announced in October 2016. Full-year reported EBITA therefore decreased to EUR 59.2 (66.8) million or 8.9% (10.5%) of net sales. We are not pleased with our financial performance in 2016 and thus we are focused on achieving sustainable profit improvement in 2017.

In the fourth quarter, thanks to overall good market and weather conditions, net sales grew at comparable exchange rates by 7.3%. This together with an improved sales mix increased comparable EBITA by 25.5% to EUR 21.1 (16.8) million, representing 11.7% (9.9%) of net sales. Our sales grew in all markets except for Denmark and we were pleased to see that we achieved a good sales mix in most of our segments during the quarter. Sales growth was fastest in Finland supported by a strong market, but profitability improved only slightly due to higher costs and a higher share of service sales. In Sweden, profitability improved driven by net sales growth, stabilizing costs and a higher share of General Rental in the sales mix. In Norway, overall market demand for General Rental was fair and we managed to stabilize our Temporary Space business. In Denmark, the improving trend in profitability also continued. In Europe Central, the previously announced reorganization actions started to improve profitability already during the quarter. In Baltics, demand was stable and a good level of profitability was maintained.

In the quarter, we also strengthened our Executive Management Team with the appointment of a new EVP of Human Resources and we launched a new long-term Incentive Plan for company key employees to maximally support the company's short-term key priority of delivering improved EBITA in 2017.

Looking ahead to 2017, we expect our business environment to remain largely favorable and will concentrate on delivering improved profitability. Our focus in 2017 lies on turning around non-performing units, improving the sales mix, increasing cost efficiency, fleet productivity and developing pricing. We have a lot of work ahead of us to improve our performance and I would like to thank the employees of Ramirent for their engagement and contribution during a challenging 2016.

With our strong market positions and financial strength there are plenty of possibilities to develop our business in the long-term. Rental is a future-proof business and we continue to be well positioned to benefit from the trends of outsourcing non-core activities, resource efficiency and increasing demand for productivity in construction. A comprehensive strategy update will be completed during 2017."

MARKET OUTLOOK FOR 2017

Ramirent's market outlook is based on the available forecasts disclosed by local construction and industry associations in its operating countries.
In 2017, Nordic equipment rental market is expected to grow by approximately 2%. In Finland, market conditions are expected to remain favorable supported by growing new residential construction and large non-residential construction projects. In Sweden, high activity in the construction sector is expected to drive demand for rental and related services throughout the country. The Danish and Norwegian equipment rental markets are estimated to remain fairly stable or grow slightly. In the Baltics, the market situation remains mixed, with challenging market conditions in Latvia, while activity is expected to improve in Estonia and Lithuania. In Fortrent markets, in Russia and Ukraine, countries are in the early stages of an economic recovery which is likely to start supporting construction and equipment rental. In Poland and Slovakia, the equipment rental markets are supported by new project start-ups both in the construction and industrial sector. Market outlook is more subdued in the Czech Republic due to low activity in the construction market.

PROPOSAL OF THE BOARD ON THE USE OF DISTRIBUTABLE FUNDS

The parent company's distributable equity on December 31, 2016 amounted to EUR 270,801,022.76 of which the net result from the financial year 2016 is EUR -545 151.16.

The Board of Directors proposes to the Annual General Meeting 2017 that a dividend of EUR 0.40 (0.40) per share be paid based on the adopted balance sheet for the financial year ended on December 31, 2016. The proposed dividend will be paid to shareholders registered in Ramirent's shareholder register maintained by Euroclear Finland Ltd on the record date for dividend payment. The dividend is proposed to be paid in two equal installments of EUR 0.20 per share, the first with record date March 20, 2017 and the second with record date September 18, 2017. If the Meeting decides as proposed, the first installment is expected to be paid on April 4, 2017 for shareholders whose shares are registered in Euroclear Finland Ltd and on April 5, 2017 for shareholders whose shares are registered in Euroclear Sweden AB. The second installment is expected to be paid on October 3, 2017 and respectively, on October 4, 2017. The Board of Directors is authorized to set a new dividend record date and payment date for the second installment of the dividend, in case the rules and regulations of the Finnish book-entry system would be changed, or otherwise so require, prior to the payment of the second installment. The proposed dividend represents a 195% (111%) payout ratio for 2016 which is above Ramirent's long-term financial target to payout at least 40% of net profit in dividend. The proposed dividend is not reflected in the year 2016 financial statements. The dividends paid in 2016 were EUR 0.40 per share totaling EUR 43,099,725.60.

ANALYST AND PRESS BRIEFING

A briefing for investment analysts and the press will be arranged 17 February, 2017 at 11:00 a.m. Finnish time at Klaus K, Bulevardi 2-4, Helsinki, (Studio K).

WEBCAST AND CONFERENCE CALL

You can participate in the analyst briefing on Friday 17 February 2016 at 11:00 a.m. Finnish time (EET) through a live webcast at www.ramirent.com and conference call. Dial-in number for conference call: +358 9 8171 0495 (FI), +46 8 5664 2702 (SE), +44 203 194 0552 (UK) and +1 855 716 1597 (US).

FINANCIAL CALENDAR UNTIL END OF 2017

Ramirent observes a silent period during 30 days prior to the publication of annual and interim financial results.

Financial Statements 2016
17 February 2017

Annual General Meeting
16 March 2017

Interim report January-March 2017
9 May 2017

Half Year Financial Report 2017
2 August 2017

Interim report January-September 2017
8 November 2017

The financial information in this stock exchange release has not been audited.

FURTHER INFORMATION
Group President and CEO Tapio Kolunsarka, tel. +358 20 750 3630, tapio.kolunsarka@ramirent.com
CFO Pierre Brorsson, tel. +46 8 624 9541, pierre.brorsson@ramirent.com
SVP, Marketing, Communications and IR Franciska Janzon, tel. +358 20 750 2859, franciska.janzon@ramirent.com

Ramirent is a leading equipment rental 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. Ramirent has operations in the Nordic countries and in Central and Eastern Europe. In 2016, Ramirent Group sales totaled EUR 665 million. The Group has 2,686 employees in 290 customer centres in 10 countries. Ramirent is listed on the NASDAQ Helsinki (RMR1V). Ramirent - More than machines®.

DISTRIBUTION
NASDAQ Helsinki
Main news media
www.ramirent.com

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