CMD 2017 Growing capital-efficiently and BUILDING IndustrY ...investors.ramirent.com/sites/default/files/cmd/3... · Growing capital-efficiently and BUILDING IndustrY’s best performing

Growing capital-efficiently and BUILDING IndustrY’s best performing supply chainDINO LEISTENSCHNEIDER, EVP, Fleet & Sourcing

CMD 2017

Capital Markets Day 2017 2

Site arrangements(Modules , Fencing)

Access equipment(Hoists, Scaffolding, Lifts)

We have THE widest offering On the market catering TO the needs of various customer sectors

Light Equipment

Access equipment(Hoists, Scaffolding, Lifts)

Weather Protection Light Equipment

Heavy Equipment(Telehandlers, Rollers, Excavators)

Power & Heating(Power Supply,Lighting)

Site arrangements(Wagons)

Access equipment(Scaffolding, Lifts)

Site arrangements Light Equipment

Safety

Sustainability

Efficiency

COMMON Trends AFFECTING CUSTOMER NEEDS

>230 000 serialized machines with almost 3 000 different specifications

Building CONSTRUCTIon

Renovation

Infrastructure

INDUSTRIAL

Current fleet composition and AGE


Fleet Composition

Rental Sales

15

53

121

101115

106

127

166

128

0

1

2

3

4

5

6

7

8

0

20

40

60

80

100

120

140

160

180

2009 2010 2011 2012 2013 2014 2015 2016 2017-09

Capex [mEUR] Age (end of year) [years]

ANNUAL CAPEX AND FLEET AGE

ModulesLiftsHeavyLight

ScaffoldingCrane & HoistsPower & HeatingSafe

Acquisition Value

WE invest in high-performing fleet based on customer need and are Well-located in biggest market areas


Optimizing fleet profitability and efficiency utilization

Offering and service levels DEVELOPED BASED ON customer need

A CB

0%

20%

40%

60%

80%

100%

1 18 35 52 69 86 103

120

137

154

171

188

205

222

239

256

273

290In

com

e /

Rent

al d

ays

% o

f tot

al

Number of different products

Prod

uct P

rofit

abili

ty

Efficiency Utilization

basic Infrastructure in place, Operational fine-tuning still required

we have Systematically improved our fleet performance


Fleet value and efficiency utilization* Non-performing fleet development 2015-2017

*Excl. bulk products (e.g. scaffolding) and Temporary Space

9.3%

7.1% 6.9%

2015 2016 2017

52%

53%

54%

55%

56%

57%

58%

59%

60%

600

650

700

750

800

850

900

15-0

1

15-0

3

15-0

5

15-0

7

15-0

9

15-1

1

16-0

1

16-0

3

16-0

5

16-0

7

16-0

9

16-1

1

17-0

1

17-0

3

17-0

5

17-0

7

17-0

9

Acquisition Value (mEUR) Efficiency Utlization, R12


Growing capital efficientlyGoing forward

12 13 14 15 16 17 18 19 20 21 22 23

There is potential to optimize replacement investments and reduce the annual net capex level


• OPTIMIZing replacement capex…

• …will lead to AVERAGE replacement net capex level of MAX.~80 mEURuntil 2020 - less than yearly depreciation

06 07 08 09 10 11 12 13 14 15 16 17

3-year rolling replacement plan

reviewing optimal fleet age target

Increased usage of refurbishments

Through efficiency and price/mix improvements We aim to grow MIN 2% p.a. before the effect of growth investments

Capital Markets Day 2017

Illustrative example

• Growth capex is generating additional revenue by increasing capacity in certain high-potential product categories

1%1%

2%

2017 Price/MixImprovement

EfficiencyGains

Growth Capex,Residual

2018

100

104

4%

8

Growth investments

Growth through supply chain efficiency gains

Growth through Pricing & customer/ product mix

development

GROWTH Through capital-efficient products –proprietary products with unique safety features


SafePassTM

EnterSafeTM GuardliteTM

Ramirent’s OWN safety products• High accident frequency in construction in Europe• Safety gaps in existing products• Demand for improved safety features

Safety concerns on construction sites

How we tackle it

BENEFITS

• Developing own safety products• Based on extensive product usage knowledge• Unique as a rental company with own R&D

• Good customer response: Safety equipment sales in Sweden +20% during 1-9 2017

• Growth opportunities especially in the Fall protection & traffic safety market

in-house SITE modules assembly started to improve capital-efficiency and service levels


Ramirent site module assembly plant in Tallinn

Limitations on the Nordic supply market for wooden modules

How we tackle it

BENEFITS

• Few supplier alternatives in the market for wooden modules

• Own assembly plant in connection to hub in Tallinn• High degree of competence in modular housing

production in Baltics• Own product usage knowhow used to improve quality

• Better control over the supply of our largest product group

• The plant is improving both profitability and service levels First modules were delivered in 2017


Building industry’s best Supply chain

Priorities for 2018 -2020:Turning OUR supply chain INTO A WELL OILED engine


BETTER availability through Sales & operations planning

Decreasing the share of unavailable fleet

DIGITIZATION OF SELECTed SUPPLY CHAIN PROCESSES

efficiency in maintenance & repair and transportation

The average rental cycle of a lift lasts 27 days(from rental to rental)

15

2

4

6

152

1

4

Shorter supply chain lead times enable usto generate 15 % more rental days over time

On rentAwaiting returnAwaiting checkupAvailable for rent

# of days # of days

IMPROVEMENT LEVERS• Centralization of activities

• Target setting and follow-up

• Process improvements

Untapped Potential in our supply chain managementGrowth through unavailability reduction


Illustrative example

Centralized operations enable us to digitalize internal processes for efficiency improvements

Warehouse MGT solution Mobile receiving Fleet telematics portal

Brunna, Enebakk Finland’s hubs & certain CCs In development


Q&A


Documents

CMD 2017 Growing capital-efficiently and BUILDING IndustrY ...investors.ramirent.com/sites/default/files/cmd/3... · Growing capital-efficiently and BUILDING IndustrY’s best performing