RAMIRENT PLC STOCK EXCHANGE RELEASE 12.2.2008
RAMIRENT GROUP'S FINANCIAL STATEMENTS FOR 2007
PROFITABLE GROWTH CONTINUED - EARNINGS PER SHARE INCREASED BY 40%
- Net sales increased by 27.4% and totalled EUR 634.3 (497.9) million.
- Operating profit (EBIT) increased by 42.8% to EUR 157.5 (110.3) million.
EBIT-margin improved to 24.8% (22.2%).
- Profit before taxes (EBT) grew by 41.6% to EUR 145.8 (102.9) million.
- Earnings per share (diluted) increased by 39.7% to EUR 1.02 (0.73).
- Capital expenditure was EUR 217.5 (176.5) million.
- Net debt increased to EUR 235.9 (186.3) million, whilst gearing remained at
69.2% (70.3%).
- Return on invested capital (ROI) was 31.7% (28.1%) and the return on equity
was (ROE) 36.4% (34.3%).
- The Board of Directors proposes a dividend of EUR 0.50 (0.30) per share.
COMMENTS from Ramirent's President and CEO KARI KALLIO
“In 2007, Ramirent reported a strong year with continued profitable growth. We
added another 22 outlets to our outlet network and invested heavily in new
machinery and equipment to cater for customer demand. Net sales increased by 27%
and earnings per share increased by 40%.”
“The business environment remained favourable in most Ramirent countries and all
business segments developed well in 2007. In the Nordic countries, Ramirent
improved its market position both in Finland and Norway. In Sweden, margins
continued to improve but with a slower growth. In Denmark growth and margins
were at a lower level compared to the other Nordic countries due to the weaker
market situation. In Central and Eastern Europe, demand for rental equipment
remained on a high level, but with growth rates becoming more modest in some
markets.”
“We are closely following the development in the financial markets and consider
the impact on our operations. The development of each individual market is
closely monitored and we are prepared to react rapidly to shifts in demand by
reallocating new investments and fleet between our markets. Especially the
development in Hungary and in the Baltics will be carefully monitored.”
“Ramirent will continuously pursue profitable growth, both organically and
through bolt-on acquisitions across all segments. We will also continue to
develop our product and services offering to our customers, develop our balanced
market portfolio and maintain control of fixed costs and fleet management.”
KEY FIGURES
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| (EUR million) | 10-12/2007 | 10-12/2006 | 1-12/2007 | 1-12/2006 |
--------------------------------------------------------------------------------
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| Net sales | 179.8 | 146.2 | 634.3 | 497.9 |
--------------------------------------------------------------------------------
| Operating profit | 67.8 | 49.2 | 237.0 | 171.6 |
| before depreciation | | | | |
| (EBITDA) | | | | |
--------------------------------------------------------------------------------
| Operating profit | 46.3 | 32.5 | 157.5 | 110.3 |
| (EBIT) | | | | |
--------------------------------------------------------------------------------
| % of net sales | 25.8% | 22.2% | 24.8% | 22.2% |
--------------------------------------------------------------------------------
| Profit before taxes | 43.5 | 30.2 | 145.8 | 102.9 |
| (EBT) | | | | |
--------------------------------------------------------------------------------
| Net profit for the | 32.5 | 22.1 | 110.2 | 79.2 |
| period | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share | 0.30 | 0.21 | 1.02 | 0.73 |
| (EPS), (diluted), EUR | | | | |
--------------------------------------------------------------------------------
| Equity per share | | | 3.14 | 2.44 |
| (diluted), EUR | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on invested | | | 31.7% | 28.1% |
| capital (ROI), % 1) | | | | |
--------------------------------------------------------------------------------
| Net debt | | | 235.9 | 186.3 |
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| Gearing, % | | | 69.2% | 70.3% |
--------------------------------------------------------------------------------
| Equity ratio, % | | | 46.3% | 45.4% |
--------------------------------------------------------------------------------
| Gross investments in | | | 217.5 | 176.5 |
| non-current assets | | | | |
| (EUR million) | | | | |
--------------------------------------------------------------------------------
| Gross investments, % | | | 34.3% | 35.4% |
| of net sales | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Personnel, average | | | 3,407 | 2,846 |
--------------------------------------------------------------------------------
| Personnel at end of | | | 3,642 | 3,016 |
| period | | | | |
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1) The figures are calculated on a rolling twelve month basis.
OPERATING ENVIRONMENT
Ramirent is a company focused on construction machinery and equipment rentals,
operating in the Nordic, Central and Eastern European markets. The Group is
headquartered in Vantaa and had 310 (288) permanent outlets in twelve countries
on 31 January 2007.
The level of construction activities in the Nordic region, except in Denmark,
remained high during the year. In Central and Eastern European countries, the
construction market continued to grow, except in Hungary where the construction
activities were lower. The Company expects that the rental market has grown in
all its operating countries faster than the construction market.
GROUP NET SALES AND PROFIT
Good market conditions and well-timed investments in new capacity increased net
sales by 27.4% to EUR 634.3 (497.9) million. The growth was strongest in
Ramirent Europe and Finland. The growth was mainly organic.
Sales break-down between the segments was balanced:
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| (EUR million) | 2007 | % of | 2006 | % of | Change |
| | | Group 07 | | Group 06 | 07/06 |
--------------------------------------------------------------------------------
| Finland | 133.6 | 21% | 102.7 | 21% | 30.1% |
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| Sweden | 152.6 | 24% | 130.9 | 26% | 16.6% |
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| Norway | 145.9 | 23% | 120.3 | 24% | 21.2% |
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| Denmark | 57.0 | 9% | 50.0 | 10% | 14.1% |
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| Ramirent Europe | 146.4 | 23% | 96.4 | 19% | 52.0% |
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It is part of Ramirent's strategy to maximize capital efficiency. To release
capital for rental equipment investments, Ramirent sold its properties in
Finland with a non-recurring gain of EUR 2.4 million in 2007. In 2006, the
properties in Sweden were sold with a non-recurring gain of EUR 5.4 million.
Operating profit before depreciation (EBITDA), excluding non-recurring property
gains, grew by 41.2% to EUR 234.2 (166.2) million; including the property gains
by 38.1% to EUR 237.0 (171.6) million.
The improvement in profit was mainly due to increased net sales and improved
operating margins especially in Sweden.
Operating profit (EBIT), excluding non-recurring property gains, increased by
47.5% to EUR 154.7 (104.9) million; including the property gains by 42.8% to EUR
157.5 (110.3) million. EBIT-margin, excluding the property gains, improved to
24.2% (21.1%); including property gains to 24.8% (22.2%).
Operating profit break-down between the segments was balanced:
--------------------------------------------------------------------------------
| (EUR million) | 2007 | % of | 2006 | % of | Change |
| | | Group 07 | | Group 06 | 07/06 |
--------------------------------------------------------------------------------
| Finland | 34.8 | 23% | 25.1 | 24% | 38.5% |
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| Sweden | 35.1 | 23% | 21.8 | 21% | 61.0% |
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| Norway | 35.9 | 23% | 26.6 | 25% | 34.9% |
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| Denmark | 10.2 | 7% | 7.0 | 7% | 44.9% |
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| Ramirent Europe | 42.2 | 27% | 25.7 | 24% | 64.5% |
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During the last quarter of the financial year, the net sales grew by 23.0% to
EUR 179.8 (146.2) million. The growth was especially strong in Ramirent Europe
(37.8%) and in Norway (26.3%). The operating profit improved by 41.9% to EUR
46.1 (32.5) million. EBIT-margin improved during the last quarter to 25.6%
(22.2%).
Due to the hedging of the share-based long-term incentive program to the key
management, the financial expenses increased by EUR 1.4 million during the
financial year, but the increase in financial expenses will be offset by a
decrease in personnel costs over the duration of the long-term incentive
program.
The Group's profit before taxes for the financial year was EUR 145.8 (102.9)
million. The net profit for the year was EUR 110.2 (79.2) million. Earnings per
share (diluted) were EUR 1.02 (0.73), non-diluted EUR 1.02 (0.74). The return on
invested capital was 31.7% (28.1%) and the return on equity was 36.4% (34.3%).
CAPITAL EXPENDITURE AND DEPRECIATION
The Group's gross capital expenditure on non-current assets totalled EUR 217.5
(176.5) million, of which EUR 211.9 (165.4) million was attributable to
investments in machinery and equipment. The significant increase in capital
expenditure reflects the Group's focus on profitable growth and its efforts to
expand the rental fleet capacity to meet customer demands and to develop the
product range and outlet network to serve customers better.
The total depreciation of non-current assets during the year 2007 amounted to
EUR 79.5 (61.2) million, of which EUR 77.6 (59.2) million consisted of
depreciation of machinery and equipment. Disposals of tangible non-current
assets were EUR 18.1 (23.7) million, of which EUR 12.5 (10.0) million were
attributable to machinery and equipment and the rest was mostly attributable to
sold properties.
Goodwill totalled EUR 77.6 (76.1) million at the end of the financial year.
FINANCIAL POSITION AND BALANCE SHEET
The Group's twelve-month cash flow from operating activities was positive,
amounting to EUR 173.8 (133.9) million. Cash flow from investing activities
amounted to EUR -192.7 (-140.7) million. Cash flow from financing activities
totalled EUR 19.0 (6.6) million. At the end of the year 2007, liquid assets
stood at EUR 1.2 (1.1) million, resulting in a net change in cash of EUR 0.1
(-0.2) million compared to the previous year-end.
Ramirent's interest-bearing liabilities increased by EUR 49.7 million from the
previous year-end and totalled EUR 237.1 (187.4) million. Net debt increased to
EUR 235.9 (186.3) million at the end of the financial year. Gearing decreased to
69.2% (70.3%).
On 16 March 2007, Ramirent Plc set up a Domestic Commercial Paper Program of EUR
100 million to cover its seasonal funding needs within a year and as an
additional flexible and cost-efficient source for short-term funding.
On 4 December 2007, Ramirent Plc concluded an additional credit limit agreement
of EUR 50 million for general funding needs of the Group.
The nominal value of the interest rate swaps at the end of the year was EUR
122.0 (49.9) million.
Total assets amounted to EUR 737.1 (584.3) million and the Group's equity ratio
was 46.3% (45.4%).
FINANCIAL TARGETS
Ramirent is focusing on profitable growth and a strong financial position that
provides financial stability for long-term business decisions. 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.
BUSINESS EXPANSIONS AND DIVESTMENT DURING THE FINANCIAL YEAR
On 9 February 2007, Bautas AS, the Norwegian wholly-owned subsidiary of Ramirent
Plc, signed an agreement on the acquisition of the rental business of Wannberg
Maskinservice AS as of 1 March 2007.
On 25 May 2007, Ramirent Finland Oy, the Finnish wholly-owned subsidiary of
Ramirent Plc, entered into an agreement on selling most of its properties with a
gain of EUR 2.4 million. Ramirent continues as a leaseholder on operating lease
basis for its outlet properties.
On 31 May 2007, Ramirent s.r.o., the Czech wholly-owned subsidiary of Ramirent
Plc, entered into an agreement with KMB Stavební Servis s.r.o. on the
acquisition of the rental business of KMB Stavební Servis. The company is
specialized in renting of telehandlers and its business covers the whole Czech
Republic. Ramirent established its operations in the Czech Republic in 2006. By
this acquisition Ramirent widens its customer base and strengthens its position
in the Czech Republic.
On 1 October, 2007, Ramirent AB, the Swedish wholly-owned subsidiary of Ramirent
Plc, signed an agreement on the acquisition of the rental business of J & J
Maskinuthyrning AB in Sweden. The acquisition supports Ramirent's strategy to
increase the outlet network in Sweden and will strengthen the position on the
market in the Northern Sweden.
On 1 November 2007, Ramirent A/S, the Danish wholly-owned subsidiary of Ramirent
Plc, took over the activities of PM Materiel ApS. PM Materiel rents out
machinery and equipment for the building and construction industry, lifts and
site units, primarily in Kalundborg and the nearby environment.
On 19 December 2007, Ramirent AB acquired the rental equipment company
Hyresmaskiner i Stockholm AB as of 16 January 2008. The acquisition strengthens
Ramirent's presence in the area of Stockholm and Uppsala in Sweden.
BUSINESS SEGMENTS
During the financial year, the Group's business operations developed strongly in
all business segments compared to the previous year.
During the last quarter the strong growth continued especially in Norway and
Ramirent Europe. Profits improved especially in Sweden and Denmark.
From January 2007 the segments have been charged with a management fee
consisting of certain Group administration costs. The comparative figures for
2006 have been adjusted accordingly.
Finland
In Finland, business operations grew strongly as the Finnish construction
market, shipyards and industrial projects grew and the use of rented equipment
continued to increase at the same time. Net sales totalled EUR 133.6 (102.7)
million and increased by 30.1%, where the acquisitions in 2006 contributed 6% to
the sales growth. Compared to the previous year, the profit of the Finnish
operations improved as a result of increased net sales and high capacity
utilization. The operating profit (EBIT), excluding the non-recurring gain from
the divestment of Finnish properties, was EUR 34.8 (25.1) million and the
operating profit margin (EBIT-%) increased to 26.1% (24.5%). Capital expenditure
decreased to EUR 26.5 (35.8) million.
Sweden
In Sweden, the strong profitability improvement continued throughout the year.
Net sales grew by 16.6% compared to the previous year and were EUR 152.6 (130.9)
million. The operating profit (EBIT) was EUR 35.1 (21.8) million. The operating
profit margin (EBIT-%) improved significantly to 23.0% (16.7%) due to better
capacity utilization, wider service offering and as a result of enhanced outlet
network and new customer groups. Capital expenditure decreased to EUR 36.8
(43.7) million. On 21 November 2007, Ramirent AB concluded a major order on
supplying rental services for a value of approximately SEK 100 million
(approximately EUR 10.7 million) during the next two years, when Boliden expands
its operations at the Aitik Copper mine near Gällivare in Sweden.
Norway
In Norway, Ramirent's Norwegian subsidiary Bautas AS's business operations
continued to improve. During the financial year net sales increased by 21.2% and
totalled EUR 145.9 (120.3) million. The profit of the Norwegian operations
improved primarily due to further improvement in capacity utilization and
increase in sales. The operating profit (EBIT) was EUR 35.9 (26.6) million and
the operating profit margin (EBIT-%) was 24.6% (22.1%). The capital expenditure
increased to EUR 38.5 (27.7) million. Investments were focused in heavier
construction equipment. On 5 October 2007, Bautas AS and Veidekke Entreprenør AS
signed a statement of intention on a major partnership agreement covering a
period of three to five years. The deal is potentially worth up to 1 billion
Norwegian kronor (NOK) (approximately EUR 130 million) over the period. The
agreement secures the continuation of co-operation between Bautas and Veidekke.
Denmark
In Denmark, business operations grew during the financial year, despite slower
construction market conditions. Net sales grew by 14.1% totalling EUR 57.0
(50.0) million. Profit increased as the share of re-renting of machinery and
equipment decreased. The profitability was also improved due to improved
logistics and wider service offering. The operating profit (EBIT) was EUR 10.2
(7.0) million, and the operating profit margin (EBIT-%) was 17.9% (14.1%).
Capital expenditure increased to EUR 22.8 (14.4) million.
Ramirent Europe
Ramirent's business operations in Ramirent Europe (Russia, Estonia, Latvia,
Lithuania, Poland, Hungary, Ukraine, and the Czech Republic) continued to show
strong growth and positive profit development during the year 2007. Heavy
investments in new capacity, high utilization and expansion of the outlet
network further improved the market position. The market development and signs
of overheating in the Baltic countries are closely monitored by Ramirent. In
Hungary, market demand was low due to fiscal stabilization. Restructuring has
been done to adjust operations to the current market situation. Compared to the
previous year, net sales in the segment increased by 52.0% to EUR 146.4 (96.4)
million. The operating profit (EBIT) improved by 65% to EUR 42.2 (25.7) million
and the operating profit margin (EBIT-%) was 28.8% (26.6%). Capital expenditure
increased to EUR 92.9 (57.4) million.
PERSONNEL AND ORGANISATION
In the financial year, the Group employed an average of 3,407 (2,846) people. In
Finland the number of employees increased to 674 (568) mainly due to temporary
workers in scaffolding projects. 597 (572) worked in the Swedish operations, 631
(567) in the Norwegian operations, 237 (194) in the Danish operations, 1,255
(936) in the European operations, and 13 (9) in the Group administration at the
end of the financial year.
At the end of the financial year, the Group had 310 (288) outlets, of which 95
(94) were in Finland, in Sweden 51 (47), in Norway 37 (36), in Denmark 17 (16)
and in Ramirent Europe 110 (95).
BUSINESS RISKS
Ramirent is subject to various business risks. Certain risk factors are deemed
to be of material importance to the future development of Ramirent.
The main risks affecting Ramirent's business operations, its profitability and
financial position are those connected with the economic cycles of the
construction industry and the increased competition in rental business in the
regions where the Company is operating. Though Ramirent has diversified
operations geographically and prepared to move capacity according to market
development, a downturn in business cycles in main markets may impact the
utilization of equipment and price levels negatively. Shortage of skilled
workforce and construction material may limit the possibilities for further
growth in many markets.
Ramirent's growth strategy is based on organic growth and acquisitions. It is
important for Ramirent to succeed in identifying potential acquisition
candidates and integrating them to Ramirent's operation. Majority of Ramirent's
growth is organic, which requires personnel and other operative resources as
well as new rental equipment. By having several suppliers for each product group
Ramirent aims to reduce the risks related to availability, delivery times and
prices of rental machinery and equipment. The motivation and know-how of the
Company's key employees, both at the outlet level and in management, are of high
importance for the Company's success. The growth strategy also includes
expansion of activities to new geographical markets. Such expansion is subject
to cultural, political, economical, regulatory, and legal risks.
Ramirent's customer base is well diversified, except in Sweden where one
customer has a material effect on Ramirent's business operations.
Ramirent is subject to certain financial risks of which foreign currency and
interest rate risks are regarded to be of greater importance than other
financial risks. During the second quarter of the financial year, Ramirent's
finance policy was revised so that the average interest rate fixing term was
prolonged from 9-15 months to 12-24 months.
SHARES AND SHARE CAPITAL
The free issue, in which one old share entitled to receive three new shares
without any payment, approved at the Annual General Meeting on 19 April 2007,
was entered into the Trade Register on 24 April 2007, after which the Company's
number of shares was 108,200,300. The Company's share capital was not increased
in context with the free issue.
During the financial year, a total of 563,456 new free issue adjusted shares
were subscribed with Ramirent Plc's 2002B options, due to which the Company's
share capital was increased by EUR 60,571.52. The increases were entered in the
Finnish Trade Register on 22 February 2007, 22 May 2007, 21 August 2007 and on
14 November 2007.
On 31 December 2007, Ramirent's share capital was EUR 11,685,081.87 divided into
108,698,436 shares.
SHARE TURNOVER AND PERFORMANCE
During the financial year, 96,159,809 (69,726,360) shares were traded on the OMX
Nordic Exchange Helsinki at a total value of EUR 1,783,155,308 (541,270,461),
i.e. 88.5% (63.6%) of Ramirent's total stock was traded. The highest price
quoted in the financial year was EUR 22.16 (11.94) and the lowest EUR 10.51
(5.38). The average share price in the financial year was EUR 16.22 (7.78) and
the last quotation on the period's last trading day was EUR 11.23 (11.20). The
Company's market value at the end of the financial year was EUR 1,220,683,436
(1,211,111,776).
SHAREHOLDERS
The ten principal shareholders on 31 December 2007 were:
--------------------------------------------------------------------------------
| | Shares | % of shares and |
| | | votes |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Nordstjernan AB | 22,349,080 | 20.56 % |
--------------------------------------------------------------------------------
| Oy Julius Tallberg Ab | 11,472,229 | 10.55 % |
--------------------------------------------------------------------------------
| Varma Mutual Pension Insurance | 6,152,202 | 5.66 % |
| Company | | |
--------------------------------------------------------------------------------
| Ilmarinen Mutual Pension Insurance | 2,331,522 | 2.14 % |
| Company | | |
--------------------------------------------------------------------------------
| Odin Norden | 1,989,860 | 1.83 % |
--------------------------------------------------------------------------------
| Odin Forvaltnings AS | 1,264,362 | 1.16 % |
--------------------------------------------------------------------------------
| Odin Forvaltning AS / Odin Europa | 944,680 | 0.87 % |
| SMB | | |
--------------------------------------------------------------------------------
| The State Pension Fund | 850,000 | 0.78 % |
--------------------------------------------------------------------------------
| Veritas Pension Insurance Company | 737,000 | 0.68 % |
| Ltd. | | |
--------------------------------------------------------------------------------
| Mutual Insurance Company Pension | 550,000 | 0.51 % |
| Fennia | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Nominee-registered shareholders | 40,815,014 | 37.55 % |
--------------------------------------------------------------------------------
| Other shareholders | 19,242,487 | 17.70 % |
--------------------------------------------------------------------------------
| | | |
--------------------------------------------------------------------------------
| Total | 108,698,436 | 100.00 % |
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FLAGGING NOTIFICATIONS
On 9 May 2007, Ramirent received a disclosure under chapter 2, section 9 of the
Securities Markets Act from Julius Baer Holding Ltd. On 26 April 2007, the
current aggregate holding in Ramirent Plc of entities belonging to Julius Baer
Ltd.'s group of companies (the Julius Baer Group) as well as of funds with an
entity of the Julius Baer Group as investment advisor increased to 5,571,972
shares representing 5.149% of Ramirent Plc´s shares and voting rights. Detailed
information on the holdings within the Julius Baer Group has been disclosed in
the stock exchange release on 10 May 2007.
On 16 May 2007, Ramirent received a disclosure under chapter 2, section 9 of the
Securities Markets Act from Nordstjernan AB. On 15 May 2007, the holdings of
Nordstjernan AB in Ramirent Plc decreased to 24,647,191 shares representing
22.8% of Ramirent Plc´s shares and voting rights.
On 13 November 2007, Ramirent received a disclosure under chapter 2, section 9
of the Securities Markets Act from Varma Mutual Pension Insurance Company. On 12
November 2007, the holdings of Varma Mutual Pension Insurance Company in
Ramirent Plc increased to 5,505,566 shares representing 5.07% of Ramirent Plc´s
shares and voting rights.
On 14 November 2007, Ramirent received a disclosure under chapter 2, section 9
of the Securities Markets Act from Julius Baer Holding Ltd. On 26 April 2007,
the current aggregate holding in Ramirent Plc of entities belonging to Julius
Baer Ltd.'s group of companies (the Julius Baer Group) as well as of funds with
an entity of the Julius Baer Group as investment advisor decreased to 5,126,306
shares representing 4.723% of Ramirent Plc´s shares and voting rights. Detailed
information on the holdings within the Julius Baer Group has been disclosed in
the stock exchange release on 14 November 2007.
2002 OPTIONS
At the end of the financial year there were no Ramirent 2002B options
outstanding. The subscription period for 2002B options expired on 31 October
2007.
DECISIONS MADE BY THE ANNUAL GENERAL MEETING OF 19 APRIL 2007
The Annual General Meeting of Ramirent Plc approved the financial statements for
2006 and discharged the members of the Board of Directors and CEO of Ramirent
Plc from liability for the financial year 2006. In addition, the Annual General
Meeting approved the proposals of the Board of Directors to amend the Articles
of Association, as well as authorised the Board of Directors to decide on the
acquisition of the Company's own shares and on a share issue.
Distribution of dividends
The Annual General Meeting in 2007 decided on a dividend of EUR 1.20 (0.60) per
share (corresponding to EUR 0.30 (0.15) per share after the free issue). The
dividend was paid on 27,050,075 shares (corresponding to 108,200,300 shares
after the free issue) on 8 May 2007.
Free issue
The Annual General Meeting in 2007 decided to increase the number of shares by
way of issuing new shares to the shareholders without any payment (“free
issue”). The right to receive new shares in the free issue belonged to the
shareholder who was entered as a shareholder in the register of shareholders
maintained by The Finnish Central Securities Depository Ltd. on the record date
24 April 2007. The free issue was entered into the Trade Register on 24 April
2007. After the registration, the Company's number of shares is 108,200,300.
New shares were recorded to the shareholders' book-entry accounts on 25 April
2007 and trading with the new shares commenced on 25 April 2007.
Members of the Board and their remuneration
The Annual General Meeting decided to elect seven members to the Board of
Directors: Kaj-Gustaf Bergh, Torgny Eriksson, Peter Hofvenstam, Ulf Lundahl,
Freek Nijdam, Erkki Norvio and Susanna Renlund. At the formative meeting of the
Board of Directors held after the Annual General Meeting, Peter Hofvenstam was
elected Chairman of the Board and Kaj-Gustaf Bergh Vice Chairman. Peter
Hofvenstam, Kaj-Gustaf Bergh and Ulf Lundahl were elected members of the Working
Committee. Peter Hofvenstam will act as Chairman for the Working Committee. The
Working Committee was established in 2004 to fulfil the duties of the Audit and
Compensation committees set forth in the Recommendation for Corporate Governance
for Listed Companies.
The Annual General Meeting decided the remuneration for the Chairman to be EUR
3,000 per month and additionally EUR 1,500 for attendance at Board and Working
committee meetings and other similar Board assignments; for the vice-chairman
EUR 2,500 per month and additionally EUR 1,300 for attendance at Board and
Working committee meetings and other similar Board assignments; and for the
members of the Board EUR 1,700 per month and additionally EUR 1,000 for
attendance at Board and Working committee meetings and other similar Board
assignments.
Auditors
KPMG Oy Ab, a firm of Authorized Public Accountants, was re-elected auditor.
Pauli Salminen, APA, is the main responsible auditor appointed by KPMG Oy Ab.
EVENTS AFTER THE REVIEW PERIOD
Acquisition of Suomen Rakennuskonevuokraamo Oy
On 3 January 2008, Ramirent Finland Oy acquired the rental equipment business of
Suomen Rakennuskonevuokraamo Oy. The acquisition adds two new outlets to
Ramirent's presence in the area of Helsinki and Espoo in Finland. Founded in
1965, Suomen Rakennuskonevuokraamo Oy, has annual revenues of around EUR 2
million and employs 10 people in two outlets in Helsinki and Espoo.
Acquisition of OTS Bratislava, spol.sr.o. (OTS) and entering the Slovak market
On 8 January 2008, Ramirent Europe Oy acquired a majority stake in the
Slovak-based company, a leading provider of rental equipment services for Slovak
construction companies. This is an important strategic step for Ramirent,
offering unique opportunities for profitable growth in the new market. The
company employs 135 people and is expected to generate sales of over EUR 10
million in 2008.
Expanding the Domestic Commercial Paper Program from EUR 100 to 150 million
Ramirent has expanded its Domestic Commercial Paper Program from EUR 100 to 150
million as an additional source of short-term funding to cover its seasonal
funding needs.
Disposal of property in Norway
On 29 January 2008, Bautas AS concluded the sale of the shares of its subsidiary
which owns the property in Trondheim, Norway. Bautas AS continues as lessee on
the sold outlet property on an operating lease basis.
PROPOSAL OF THE BOARD ON THE USE OF DISTRIBUTABLE FUNDS
The Board of Directors proposes to the Annual General Meeting that a dividend of
EUR 0.50 (0.30) per share be paid for the financial year 2007, corresponding to
49% of the earnings per share. The dividend record date for the proposed
dividend is 14 April 2008.
ANNUAL GENERAL MEETING
The Annual General Meeting will be held in Pörssisali of Pörssitalo on 9 April
2008, at 16.30 hrs. The invitation to the Annual General Meeting is planned to
be published on 18 February 2008. The annual report will be available in week 9.
OUTLOOK
Overall market conditions are expected to remain favourable in 2008, but with
lower growth rates and increasing uncertainty regarding the market outlook.
In the Nordic countries, the large construction companies show order backlogs on
a good level. The outlook in the business premise and infrastructure sectors
remains favourable, although a slow-down is experienced in the residential
housing sector.
In Central and Eastern Europe, Ramirent expects the strong demand in the
construction market to continue in most of its markets, but the risks of
overheating and imbalances have increased.
The impact of the global financial turmoil on the construction industry is still
unknown and Ramirent will focus on risk management to prepare for any adverse
effects. The macroeconomic development in Ramirent's countries is monitored
carefully and contingency planning is prioritized to react to changes in market
demand.
Rental penetration rate for machinery and equipment rental services is expected
to continue to rise in the Group's markets as construction companies
increasingly opt to rent equipment instead of investing in their own fleet.
Consequently, Ramirent estimates that the machinery rental markets will grow
faster than the construction markets.
Ramirent is well-positioned to exploit the business opportunities in its
selected markets. Ramirent will continue to invest in new fleet capacity and
search for suitable bolt-on acquisitions to support profitable growth.
For the full-year 2008, Ramirent expects to fulfil its financial targets.
SEGMENT INFORMATION, INCOME STATEMENT, BALANCE SHEET, CONDENSED CASH FLOW
STATEMENT, STATEMENT OF CHANGES IN EQUITY, KEY FIGURES, AND CONTINGENT
LIABILITIES
Ramirent Plc adopted the International Financial Reporting Standards (IFRS) on 1
January, 2005. The Group applies the following amendments to the standards and
IFRIC's as from the financial year 2007: Change in IAS 1 Presentation of
Financial Statements; IAS 34: Interim Financial Reporting; IFRS 7 Financial
Instruments: Disclosures; IFRIC 8, 9, 10, 11 and 12. The changes did not have
any significant effect on Ramirent's financial figures. The same definitions of
key financial figures have been applied as in Ramirent Plc's annual financial
statements for 2006.
Segment information is presented for Ramirent's primary segment, which is
determined by geographical split. Ramirent Plc has started charging a management
fee to the segments as from 1 January 2007. The segment information of the
previous year has been amended accordingly.
QUARTERLY SEGMENT INFORMATION
--------------------------------------------------------------------------------
| (EUR million) | 10-12/07 | 10-12/06 | 1-12/07 | 1-12/06 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | | | | |
--------------------------------------------------------------------------------
| Finland | 36.1 | 29.4 | 133.6 | 102.7 |
--------------------------------------------------------------------------------
| Sweden | 43.0 | 38.1 | 152.6 | 130.9 |
--------------------------------------------------------------------------------
| Norway | 41.7 | 33.0 | 145.9 | 120.3 |
--------------------------------------------------------------------------------
| Denmark | 15.5 | 14.1 | 57.0 | 50.0 |
--------------------------------------------------------------------------------
| Other European | 43.8 | 31.8 | 146.4 | 96.4 |
| countries (Ramirent | | | | |
| Europe) | | | | |
--------------------------------------------------------------------------------
| Sales between segments | -0.2 | -0.2 | -1.3 | -2.4 |
--------------------------------------------------------------------------------
| Net sales, total | 179.8 | 146.2 | 634.3 | 497.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit | | | | |
--------------------------------------------------------------------------------
| Finland | 8.6 | 6.8 | 34.8 | 25.1 |
--------------------------------------------------------------------------------
| % of net sales | 23.9% | 23.0% | 26.1% | 24.5% |
--------------------------------------------------------------------------------
| Sweden | 11.2 | 7.5 | 35.1 | 21.8 |
--------------------------------------------------------------------------------
| % of net sales | 26.0% | 19.6% | 23.0% | 16.7% |
--------------------------------------------------------------------------------
| Norway | 10.5 | 7.2 | 35.9 | 26.6 |
--------------------------------------------------------------------------------
| % of net sales | 25.2% | 21.8% | 24.6% | 22.1% |
--------------------------------------------------------------------------------
| Denmark | 3.8 | 2.5 | 10.2 | 7.0 |
--------------------------------------------------------------------------------
| % of net sales | 24.2% | 17.4% | 17.9% | 14.1% |
--------------------------------------------------------------------------------
| Other European | 12.6 | 9.2 | 42.2 | 25.7 |
| countries (Ramirent | | | | |
| Europe) | | | | |
--------------------------------------------------------------------------------
| % of net sales | 28.7% | 28.9% | 28.8% | 26.6% |
--------------------------------------------------------------------------------
| Costs not allocated to | -0.6 | -0.6 | -3.5 | -1.3 |
| segments | | | | |
--------------------------------------------------------------------------------
| Group operating profit | 46.1 | 32.5 | 154.7 | 104.9 |
| excluding the profit of | | | | |
| divestment of | | | | |
| properties | | | | |
--------------------------------------------------------------------------------
| % of net sales | 25.6% | 22.2% | 24.4% | 21.1% |
--------------------------------------------------------------------------------
INCOME STATEMENT
--------------------------------------------------------------------------------
| (EUR 1,000) | 10-12-/07 | 10-12/06 | 1-12/07 | 1-12/06 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Net sales | 179,799 | 146,223 | 634,257 | 497,858 |
--------------------------------------------------------------------------------
| Other operating | 2,316 | 659 | 5,825 | 6,907 |
| income | | | | |
--------------------------------------------------------------------------------
| TOTAL | 182,115 | 146,882 | 640,083 | 504,765 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Materials and | -49,249 | -45,908 | -173,750 | -149,457 |
| services | | | | |
--------------------------------------------------------------------------------
| Employee benefit | -40,120 | -34,625 | -152,970 | -125,742 |
| expenses | | | | |
--------------------------------------------------------------------------------
| Depreciation | -21,494 | -16,757 | -79,457 | -61,243 |
--------------------------------------------------------------------------------
| Other operating | -24,931 | -17,119 | -76,361 | -58,003 |
| expenses | | | | |
--------------------------------------------------------------------------------
| OPERATING PROFIT | 46,321 | 32,473 | 157,545 | 110,320 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial income | 2,413 | 412 | 5,761 | 4,404 |
--------------------------------------------------------------------------------
| Financial expenses | -5,234 | -2,666 | -17,553 | -11,781 |
--------------------------------------------------------------------------------
| PROFIT BEFORE TAXES | 43,500 | 30,219 | 145,753 | 102,943 |
--------------------------------------------------------------------------------
| Income taxes | -11,009 | -8,080 | -35,541 | -23,787 |
--------------------------------------------------------------------------------
| NET PROFIT FOR THE | 32,492 | 22,139 | 110,212 | 79,156 |
| PERIOD | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Sharing of profit: | | | | |
--------------------------------------------------------------------------------
| To the parent | 32,484 | 22,131 | 110,177 | 79,129 |
| company's | | | | |
| shareholders | | | | |
--------------------------------------------------------------------------------
| To the Group's | 7 | 8 | 36 | 27 |
| minority | | | | |
--------------------------------------------------------------------------------
| Sharing of profit, | 32,492 | 22,139 | 110,212 | 79,156 |
| total | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share | | | 1.02 | 0.73 |
| (EPS), diluted, EUR | | | | |
--------------------------------------------------------------------------------
| Earnings per share | | | 1.02 | 0.74 |
| (EPS), non-diluted, | | | | |
| EUR | | | | |
--------------------------------------------------------------------------------
BALANCE SHEET
ASSETS
--------------------------------------------------------------------------------
| (EUR 1,000) | 31.12.2007 | 31.12.2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NON-CURRENT ASSETS | | |
--------------------------------------------------------------------------------
| Tangible assets | 505,800 | 384,486 |
--------------------------------------------------------------------------------
| Goodwill | 77,633 | 76,112 |
--------------------------------------------------------------------------------
| Other intangible assets | 2,011 | 1,527 |
--------------------------------------------------------------------------------
| Available-for-sale investments | 95 | 125 |
--------------------------------------------------------------------------------
| Deferred tax assets | 2,170 | 1,200 |
--------------------------------------------------------------------------------
| NON-CURRENT ASSETS, TOTAL | 587,709 | 463,450 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CURRENT ASSETS | | |
--------------------------------------------------------------------------------
| Inventories | 22,155 | 17,767 |
--------------------------------------------------------------------------------
| Trade and other receivables | 122,873 | 97,157 |
--------------------------------------------------------------------------------
| Income tax receivables on the | 225 | 147 |
| taxable income for the financial | | |
| period | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 1,200 | 1,113 |
--------------------------------------------------------------------------------
| Non-current assets held for sale | 2,967 | 4,632 |
--------------------------------------------------------------------------------
| CURRENT ASSETS, TOTAL | 149,420 | 120,815 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL ASSETS | 737,129 | 584,265 |
--------------------------------------------------------------------------------
EQUITY AND LIABILITIES
--------------------------------------------------------------------------------
| (EUR 1,000) | 31.12.2007 | 31.12.2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY | | |
--------------------------------------------------------------------------------
| Share capital | 11,685 | 11,625 |
--------------------------------------------------------------------------------
| Share premium account | 126,644 | 126,011 |
--------------------------------------------------------------------------------
| Retained earnings | 202,683 | 127,205 |
--------------------------------------------------------------------------------
| PARENT COMPANY SHAREHOLDERS' | 341,012 | 264,841 |
| EQUITY | | |
--------------------------------------------------------------------------------
| Minority interests | 107 | 83 |
--------------------------------------------------------------------------------
| EQUITY, TOTAL | 341,119 | 264,924 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NON-CURRENT LIABILITIES | | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 44,271 | 33,135 |
--------------------------------------------------------------------------------
| Pension obligations | 8,036 | 8,090 |
--------------------------------------------------------------------------------
| Provisions | 1,051 | 1,186 |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 164,501 | 169,769 |
--------------------------------------------------------------------------------
| NON-CURRENT LIABILITIES, TOTAL | 217,860 | 212,180 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CURRENT LIABILITIES | | |
--------------------------------------------------------------------------------
| Trade payables and other | 89,007 | 79,358 |
| liabilities | | |
--------------------------------------------------------------------------------
| Provisions | 399 | 581 |
--------------------------------------------------------------------------------
| Income tax liabilities on the | 16,187 | 9,604 |
| taxable income for the financial | | |
| period | | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 72,558 | 16,936 |
--------------------------------------------------------------------------------
| Liabilities connected to | 0 | 682 |
| non-current assets held for sale | | |
--------------------------------------------------------------------------------
| CURRENT LIABILITIES, TOTAL | 178,151 | 107,161 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| LIABILITIES, TOTAL | 396,011 | 319,341 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL EQUITY AND LIABILITIES | 737,129 | 584,265 |
--------------------------------------------------------------------------------
CONDENSED CASH FLOW STATEMENT
--------------------------------------------------------------------------------
| (EUR million) | 1-12/07 | 1-12/06 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from operating | 173.8 | 133.9 |
| activities | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from investing | -192.7 | -140.7 |
| activities | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from financing | | |
| activities | | |
--------------------------------------------------------------------------------
| Proceeds from share | 0.7 | 2.5 |
| subscriptions | | |
--------------------------------------------------------------------------------
| Borrowings/repayments of short- | 50.5 | |
| term debt | | |
--------------------------------------------------------------------------------
| Borrowings of long-term debt | 0.3 | 20.2 |
--------------------------------------------------------------------------------
| Dividends paid | -32.5 | -16.1 |
--------------------------------------------------------------------------------
| Cash flow from financing | 19.0 | 6.6 |
| activities | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net change in cash and cash | 0.1 | -0.2 |
| equivalents | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and cash equivalents at the | 1.1 | 1.3 |
| beginning of the financial year | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Translation difference on cash | 0.0 | 0.0 |
| and cash equivalents | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net change in cash and cash | 0.1 | -0.2 |
| equivalents | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and cash equivalents at the | 1.2 | 1.1 |
| end of the financial year | | |
--------------------------------------------------------------------------------
CHANGES IN EQUITY
--------------------------------------------------------------------------------
| (EUR | Shar | Share | Cumul | Reval | Retain | Entrie | Mino | Total |
| 1,000) | e | premi | ativ | uatio | ed | s on | rity | equity |
| | capi | um | e | n fund | earnin | non-cu | inte | |
| | tal | | trans | | gs | rrent | rest | |
| | | | lati | | | assets | | |
| | | | on | | | held | | |
| | | | diffe | | | for | | |
| | | | renc | | | sale | | |
| | | | es | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Equity | 11,4 | 122,7 | 4,236 | -580 | 59,027 | - | 82 | 196,994 |
| on 31 | 41 | 88 | | | | | | |
| Decemb | | | | | | | | |
| er | | | | | | | | |
| 2005 | | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| Transl | - | - | 662 | - | - | - | -7 | 655 |
| ation | | | | | | | |
|
| differ | | | | | | | | |
| ences | | | | | | | |
|
--------------------------------------------------------------------------------
| Decrea | - | - | - | - | - | - | -19 | -19 |
| se of | | | | | | | | |
| minor | | | | | | | |
|
| ity | | | | | | | | |
| intere | | | | | | | | |
| st | | | | | | | | |
--------------------------------------------------------------------------------
| Fair | - | - | - | 925 | - | - | - | 925 |
| value | | | | | | | | |
| adjust | | | | | | | | |
| ment | | | | | | | |
|
| of | | | | | | | | |
| intere | | | | | | | | |
| st | | | | | | | | |
| rate | | | | | | | | |
| SWAPs | | | | | | | | |
--------------------------------------------------------------------------------
| Fair | - | - | - | 6 | - | 184 | - | 190 |
| value | | | | | | | | |
| adjust | | | | | | | | |
| ment | | | | | | | |
|
| of | | | | | | | | |
| avail | | | | | | | |
|
| able-f | | | | | | | | |
| or-sal | | | | | | | | |
| e | | | | | | | | |
| invest | | | | | | | | |
| ments | | | | | | | |
|
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| Income | - | - | - | -242 | - | -48 | - | -290 |
| tax on | | | | | | | | |
| direct | | | | | | | | |
| ly to | | | | | | | | |
| equit | | | | | | | |
|
| y | | | | | | | | |
| entrie | | | | | | | | |
| s | | | | | | | | |
--------------------------------------------------------------------------------
| Entrie | - | - | 662 | 689 | - | 136 | -26 | 1,461 |
| s | | | | | | | | |
| direct | | | | | | | | |
| ly to | | | | | | | | |
| equit | | | | | | | |
|
| y | | | | | | | | |
| (net) | | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| Net | - | - | - | - | 79,129 | - | 27 | 79,156 |
| profit | | | | | | | | |
| for | | | | | | | | |
| the | | | | | | | | |
| finan | | | | | | | |
|
| cial | | | | | | | | |
| year | | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| Net of | - | - | 662 | 689 | 79,129 | 136 | 1 | 80,617 |
| income | | | | | | | | |
| and | | | | | | | | |
| expen | | | | | | | |
|
| ses | | | | | | | | |
| for | | | | | | | | |
| the | | | | | | | | |
| period | | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| Divide | - | - | - | - | -16,094 | - | - | -16,094 |
| nd | | | | | | | | |
| distri | | | | | | | | |
| butio | | | | | | | |
|
| n | | | | | | | | |
--------------------------------------------------------------------------------
| Direct | 13 | 896 | - | - | - | - | - | 909 |
| ed | | | | | | | | |
| share | | | | | | | | |
| issue | | | | | | | | |
--------------------------------------------------------------------------------
| Used | 171 | 2,327 | - | - | - | - | - | 2,498 |
| share | | | | | | | | |
| option | | | | | | | | |
| s | | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| Equity | 11,6 | 126,0 | 4,898 | 109 | 122,062 | 136 | 83 | 264,924 |
| on 31 | 25 | 11 | | | | | | |
| Decemb | | | | | | | | |
| er | | | | | | | | |
| 2006 | | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| Transl | - | - | -1,99 | - | - | - | -12 | -2,010 |
| ation | | | 8 | | | | |
|
| differ | | | | | | | | |
| ences | | | | | | | |
|
--------------------------------------------------------------------------------
| Fair | - | - | - | -326 | - | - | - | -326 |
| value | | | | | | | | |
| adjust | | | | | | | | |
| ment | | | | | | | |
|
| of | | | | | | | | |
| intere | | | | | | | | |
| st | | | | | | | | |
| rate | | | | | | | | |
| SWAPs | | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| Income | - | - | - | 85 | - | - | - | 85 |
| tax on | | | | | | | | |
| direct | | | | | | | | |
| ly to | | | | | | | | |
| equit | | | | | | | |
|
| y | | | | | | | | |
| entrie | | | | | | | | |
| s | | | | | | | | |
--------------------------------------------------------------------------------
| Entrie | - | - | -1,99 | -241 | - | - | -12 | -2,251 |
| s | | | 8 | | | | | |
| direct | | | | | | | | |
| ly to | | | | | | | | |
| equit | | | | | | | |
|
| y | | | | | | | | |
| (net) | | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| Net | - | - | - | - | 110,177 | - | 36 | 110,213 |
| profit | | | | | | | | |
| for | | | | | | | | |
| the | | | | | | | | |
| finan | | | | | | | |
|
| cial | | | | | | | | |
| year | | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| Net of | - | - | -1,99 | -241 | 110,177 | - | 24 | 107,962 |
| income | | | 8 | | | | | |
| and | | | | | | | | |
| expen | | | | | | | |
|
| ses | | | | | | | | |
| for | | | | | | | | |
| the | | | | | | | | |
| period | | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| Divide | - | - | - | - | -32,460 | - | - | -32,460 |
| nd | | | | | | | | |
| distri | | | | | | | | |
| butio | | | | | | | |
|
| n | | | | | | | | |
--------------------------------------------------------------------------------
| Used | 60 | 633 | - | - | - | - | - | 693 |
| share | | | | | | | | |
| option | | | | | | | | |
| s | | | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| Equity | 11,6 | 126,6 | 2,900 | -132 | 199,779 | 136 | 107 | 341,119 |
| on 31 | 85 | 44 | | | | | | |
| Decemb | | | | | | | | |
| er | | | | | | | | |
| 2007 | | | | | | | | |
--------------------------------------------------------------------------------
KEY FIGURES
--------------------------------------------------------------------------------
| | 1-12/07 | 1-12/06 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest-bearing debt, (EUR million) | 237.1 | 187.4 |
--------------------------------------------------------------------------------
| Net debt, (EUR million) | 235.9 | 186.3 |
--------------------------------------------------------------------------------
| Invested capital (EUR million), end | 578.2 | 452.3 |
| of period | | |
--------------------------------------------------------------------------------
| Return on invested capital (ROI), % | 31.7% | 28.1% |
| 1) | | |
--------------------------------------------------------------------------------
| Gearing, % | 69.2% | 70.3% |
--------------------------------------------------------------------------------
| Equity ratio, % | 46.3% | 45.4% |
--------------------------------------------------------------------------------
| Personnel, average | 3,407 | 2,846 |
--------------------------------------------------------------------------------
| Personnel, end of period | 3,642 | 3,016 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Gross investments in non-current | 217.5 | 176.5 |
| assets (EUR million) | | |
--------------------------------------------------------------------------------
| Gross investments, % of net sales | 34.3% | 35.4% |
--------------------------------------------------------------------------------
The definitions of the key figures are in Annual Report 2006.
1) The figures are calculated on a rolling twelve month basis.
KEY FIGURES PER SHARE
--------------------------------------------------------------------------------
| | 1-12/07 | 1-12/06 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share (EPS) weighted | 1.02 | 0.73 |
| average, diluted, EUR | | |
--------------------------------------------------------------------------------
| Earnings per share (EPS) weighted | 1.02 | 0.74 |
| average, non-diluted, EUR | | |
--------------------------------------------------------------------------------
| Equity per share, end of period, | 3.14 | 2.44 |
| diluted, EUR | | |
--------------------------------------------------------------------------------
| Equity per share, end of period, | 3.14 | 2.45 |
| non-diluted, EUR | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Number of shares (weighted | 108,517,711 | 108,017,625 |
| average), diluted | | |
--------------------------------------------------------------------------------
| Number of shares (weighted | 108,402,225 | 107,428,285 |
| average), non-diluted | | |
--------------------------------------------------------------------------------
| Number of shares (end of period), | 108,698,436 | 108,724,320 |
| diluted | | |
--------------------------------------------------------------------------------
| Number of shares (end of period), | 108,698,436 | 108,134,980 |
| non-diluted | | |
--------------------------------------------------------------------------------
The free issue on 24 April 2007 has been taken into account in the key figures
per share.
CONTINGENT LIABILITIES
--------------------------------------------------------------------------------
| (EUR million) | 31.12.2007 | 31.12.2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Real estate mortgages | - | 0.9 |
--------------------------------------------------------------------------------
| Interest-bearing debt for which | - | 0.3 |
| the above collateral is given | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Floating charges | 0.0 | 76.6 |
--------------------------------------------------------------------------------
| Other pledged assets | 0.1 | 3.1 |
--------------------------------------------------------------------------------
| Interest-bearing debt for which | 0.0 | 183.8 |
| the above collateral is given | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Suretyships | 2.6 | 2.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Committed investments in | 86.4 | - |
| non-current assets | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-cancellable minimum future | 127.7 | 89.3 |
| operating lease payments | | |
--------------------------------------------------------------------------------
| Non-cancellable minimum future | 2.5 | 6.1 |
| finance lease payments | | |
--------------------------------------------------------------------------------
| Finance lease debt in the balance | -2.4 | -5.8 |
| sheet | | |
--------------------------------------------------------------------------------
| Non-cancellable minimum future | 127.8 | 89.6 |
| lease payments off-balance sheet | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Obligations arising from | | |
| derivative instruments | | |
--------------------------------------------------------------------------------
| Nominal value of underlying object | 122.0 | 49.9 |
--------------------------------------------------------------------------------
| Fair value of the derivative | -0.2 | 0.1 |
| instruments | | |
--------------------------------------------------------------------------------
Ramirent has borrowing facilities which have equity ratio, leverage ratio and
other financial covenants. Ramirent's financial ratios are on 31 December 2007
significantly better than these covenants.
Ramirent has made no transactions with its related parties during the financial
year. There are no outstanding balances between the Company and its related
parties at the end of the financial year.
There are no pending legal cases, the impact of which could have a material
effect on the figures reported in this report.
ANALYST AND PRESS BRIEFING
A briefing for investment analysts and the press will be arranged on Tuesday, 12
February 2008 at 10.00 a.m. in the Börs Cabinet of Restaurant Pörssi in Helsinki
(address: Fabianinkatu 14).
FINANCIAL REPORTING 2008
Ramirent's Annual Report 2007 will be available at www.ramirent.com on 29
February, 2008 at 12:00 noon.
Ramirent Plc's Annual General Meeting will be held in Pörssisali on 9 April 2008
at 16.30.
In 2008, the interim reports will be published as follows:
- January-March: 9 May 2008 at 8:00 a.m.
- January-June: 15 August 2008 at 8:00 a.m.
- January-September: 7 November 2008 at 8:00 a.m.
The financial information in this stock exchange release has been audited.
Vantaa, 12 February 2008
RAMIRENT PLC
Board of Directors
FURTHER INFORMATION:
CEO Kari Kallio, phone +358 40 716 1832, or email kari.kallio@ramirent.com
CFO Heli Iisakka, phone +358 40 544 6833, or email heli.iisakka@ramirent.com
DISTRIBUTION:
OMX Nordic Exchange Helsinki
Main news media
www.ramirent.com
Ramirent is the leading machinery rental company in the Nordic countries and in
Central and Eastern Europe. The Group has some 340 permanent outlets in thirteen
countries and is registered in Helsinki. Ramirent employs over 3,600 people and
in 2007 the consolidated net sales were EUR 634 million. Ramirent is listed on
the OMX Nordic Exchange Helsinki. For further information, please visit
www.ramirent.com.
