Strengthening our market leading position in Norway

Transcription

1 Strengthening our market leading position in Norway Presentation for Ramirent CMD 2011 Bjørn Larsen, SVP, Norway 1 September / CMD 2011 / Bjørn Larsen 2011 Ramirent

2 Ramirent Norway Executive summary ALTA KIRKENES Largest and most versatile rental equipment and service offering #1 market position Maintained capacity though financial crises and well positioned for further growth BRØNNØYSUND BODØ TROMSØ HARSTAD NARVIK FAUSKE MO I RANA Double digit growth in net sales and profitability improvement in H ÅLESUND ORKANGER STEINKJER STJØRDAL TRONDHEIM FØRDE BERGEN STORD HAUGESUND STAVANGER SANDNES SANDANE SOGNDAL GOL PORSGRUNN LILLEHAMMER GJØVIK HØNEFOSS OSLO DRAMMEN TØNSBERG SKIEN LARVIK MOELV HAMAR SKEDSMO ROMMEN SKI RYGGE FREDRIKSTAD HALDEN Ramirent customer centre EGERSUND KRISTIANSAND 2

3 Q Norway Highlights Historic financial performance Growth driven by construction especially in the western and northern parts of Norway Profitability still low, but measures have been taken to improve efficiency in the outlet network and for increasing price levels New nationwide cooperation agreement with Veidekke Ramirent signed an agreement to acquire Rogaland Planbygg AS contributing to annual net sales with approximately MEUR 22 MEUR Q Q2 Q3 Q4 Q Q2 Q3 Q4 Q Net sales Q2 16 % 14 % 12 % 10 % 8 % 6 % 4 % 2 % 0 % -2 % -4 % EBIT-% Q2 January - June Full Year Norway Change Change Change Change 2010 (EUR) (Local) (EUR) (Local) Net sales, MEUR % 10 % % 11 % EBIT, MEUR % % 2.3 EBIT-margin 7.9 % 3.7 % 4.4 % 1.0 % 2.0 % Employees % 503 Outlets % 42 3

4 Norway vision and key business objectives Group Vision To be the leading and most progressive equipment rental solutions company in Europe, setting the benchmark for industry performance and customer service Key business objectives Sustainable profitability growth driven by positive top-line development and operational excellence Reduced risk level through more balanced business portfolio Common platform for selected processes combined with strong local customer orientation Country Norway To be the leading, most profitable, and most progressive equipment rental solutions company in Norway, setting the benchmark for industry performance and customer service Increase profitability Keep and grow market share (profitable growth only) Strong growth market share small/medium sized customers Strong growth industrial and public customers 4

5 Norway Sales split Sales by product group Q Sales by customer sector 2010 Modules 17 % SAFE 2 % Cranes & Hoists 2 % Public sector 6% Households 3% Other 30 % Industry 10% Lifts 14 % Others 16% Scaffolding 12 % Power & Heating 12 % Light 6 % Heavy 5 % Construction 65% 5

6 Acquisition of high-class module specialist Rogaland Planbygg AS Major acquisition for Ramirent Norway Norwegian Topline will increase by approx. 20%, (MEUR 125 to MEUR 150) Acquisition closed August 3, 2011 Founded in 1997 and based in Tananger, south of Stavanger Focused on rental and sales of used and new high class modules, appr. 2,100 modules Key customer segment is the Oil & Gas Industry, but also customers in the public sector (kinder gardens and schools) 6

7 Offering; Rental and sales High Class wooden modules Kindergardens Schools Temporary Offices Accomodation Mobilisation / demob. by subsidiary (40% ownership) Solid temporary constructions High project, planning, and operations expertise Concept development expertise 7

8 Module sites throughout coastal Norway ALTA KIRKENES Primarily centred around Stavanger Key modules sites include Stord, Kårstø, Stavanger, Risavika, Tromsø With close to 100% utilisation rate, the company has no depots for unused modules BODØ TROMSØ HARSTAD NARVIK FAUSKE BRØNNØYSUND MO I RANA STEINKJER ORKANGER STJØRDAL ÅLESUND TRONDHEIM FØRDE BERGEN STORD HAUGESUND STAVANGER SANDNES SANDANE SOGNDAL GOL PORSGRUNN LILLEHAMMER GJØVIK HØNEFOSS OSLO DRAMMEN TØNSBERG SKIEN LARVIK MOELV HAMAR SKEDSMO ROMMEN SKI RYGGE FREDRIKSTAD HALDEN Ramirent customer centre Key module sites EGERSUND KRISTIANSAND 8

9 The company has a strong position in the attractive Oil & Gas market Oil and Gas segment MNOK total potential market (including modules currently owned by customers and including services) Rental penetration 40-50% Public sector segment BNOK total potential market (including permanent buildings that could be replaced with module solutions and including services) Rental penetration very low Cramo 10 % Others Ramirent7 % 3 % Rogaland Planbygg 60 % Ramirent 5 % Rogaland Planbygg 10 % Others 15 % Malthus 40 % Malthus 20 % Cramo 30 % 9

10 Strategic Reasons for the Acquisition Extend High Class Module offering Increase non-construction sector exposure by growing sales to the Industrial and Public Sectors Achieve a footprint in the growing Oil & Gas Industry and Public Sectors Gain expertise and grow in a highly profitable market 10

11 Market dynamics and key trends Estimated market size Total rental market size, Million EUR F 2011F 2012F 2013F 2014F Construction sector Other sectors Key market dynamics and trends Norway is in a clear cyclical upturn. Strong consumer buying power. Norwegian economy strong, significant lender to other countries. Market outlook; Growth in residential buildings will be significant in Non-residential will fall slightly. Major geographical differences within Norway Rental penetration development Penetration (%) 100 % 80 % 60 % 40 % 20 % 0 % 40 % 30 % 30 % 30 % 32 % 33 % 34 % 35 % F 2012F 2013F 2014F Main competitors 44 % 1 1 % 18 % 15 % 11 % 10 % Ramirent Cramo Uco Malthus Oslo Lift BAS maskinutleie Others Note 1) The Norwegian Rental Association changed their estimate for penetration from

12 The building market in Norway prices. NOK Bill. Residential construction Non-residential construction Rehabilitation residential Rehabilitation non-residentia 12

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14 Ramirent s positioning as a Dynamic Rental Solutions supplier Providing Eco solutions Strengthened offering of accommodation and office space Safety solutions is a new focus for 2011/2012 Ramirent School trains customers in safe use of equipment 14

15 EcoSolutions: Strategic new direction EcoSolutions for Modules Upgraded standard modules New High-Class (TEK10) modules EcoSolutions for Building Sites Steering of energy use at building sites Heating and Drying Roof-over-Roof (Weather Protection Systems) Focus on SAVINGS of energy and cost + environment 15

16 Roof-over-roof The biggest savings in energy comes from better and faster drying-out of the building: With roof-over-roof you avoid water coming in from above, and the building materials stay dry during the building period. You also avoid the issues with built-in damp that may lead to allergies and other problems later on. Roof-over roof also has additional advantages, such as: Quicker building time Improved HES Improved work satisfaction (especially during winter). 16

17 Dynamic Rental Solutions customers Customer: IF (Insurance) Case: Idrettshøyskolen (National School of Atlethics) burnt partly down, and left the athletics with nowhere to train. Solution: We quickly put up a roofover-roof (WPS-system) to prevent further damage from the rain and snow, and set up modules where everyone could keep on training. Everyone was very happy. Customer: Veidekke Project: Marienlyst housing project Solution: New high tech modules with full 2010 standard. Customer is extremely happy and the project is moving with full speed. Customer: AF Group Project: Kilden Culture House Solution: Advanced scaffolding solution where other competitors were not able to deliver the same solution and quality. 17

18 Segment Opportunities and challenges Opportunities Gain Market share in construction and industry markets. Ramirent owns the largest footprint and best reputation in Norway Develop efficient outlet structure Further develop dealership concept Increase cross selling and gain foothold with industrial customers Further develop Dynamic Rental solutions concepts Monitor strategic acquisition opportunities Challenges Increase efficiency and take down both variable and fixed cost while growing the business Develop expertise of change / change mgmt. within the organisation To handle cyclical construction market trends; growing without experiencing over capacity through downturns Major geographical differences in cyclical turns 18