Segment Europe East Russia and Ukraine CAPITAL MARKETS DAY 2012 Grigory Grif, MD, Ramirent Russia and Ukraine Botievo, Ukraine
Ramirent in Russia and Ukraine Executive summary Highlights Customer Center Shop-in-shop Regional agent The largest full product range rental company in Russian Federation The only one general rental company in Ukraine Broad range of products and services Well positioned for further growth Customer centre network well located In Q3 2012, infrastructure construction was the main driver for growth Key figures Russia 1 9 2012 Ukraine 1 9 2012 Market position 1 1 RUSSIA Employees 177 65 Customer centres 7 6 UKRAINE 73
Attractive market outlook in Russia and Ukraine The underlying addressable construction market estimated well over 100bn with forecasted growth of 8% growth p.a. Large Market Strong Growth Improving rental penetration further supports the growth in the rental market Improving Dynamics Rental Penetration Increase There are immediate expansion opportunities in the large St. Petersburg and Moscow regions Clear Focus St.P Mow Russian and Ukrainian rental markets are very fragmented with many players focusing on a single product group Opportunity Leading Rental Company Note: Addressable construction market comprises six federal districts in Russia (i.e. the European part) and Ukraine. Estimates regarding market size and growth based on management assessment.
Russia and Ukraine market dynamics and key trends The addressable* rental market in Russia and Ukraine Key market dynamics and trends MEUR 1200 ~1000 Growth is strongly driven by the Construction segment in both countries 1000 800 600 400 200 ~800 ~900 Civil engineering Nonresidential Residential Industry & private Currently there are several large construction that drive the growth in the rental market Additionally, Russian/Ukraine rental markets are underdeveloped compared to other countries in Europe rental penetration is low around 8-11% There are also differences in rental market maturity between different regions in Russia 0 2011E 2012E 2013E * Addressable market includes six federal districts in Russia and Ukraine Source: PMR Construction sector in Russia report (Construction output growth 2012-2014) Market structure Russia Market structure Ukraine Ramirent Pekkaniska Plettak Algeco Ramirent Tehstroykontrakt Pekkaniska Cramo LTech Doka Peri Others 85 % 15 % Top 5 players 75
Focus industries for customer structure development in Russia and Ukraine Russia sales split by industry 1-9 2012 Ukraine sales split by industry 1-9 2012 DIY Public 0% 1% Events 1% Industrial 7% Infrastructure 18% Industrial 20% Other 22% DIY 18% Construction 60% Construction 55% Other 2% Services & retail 7% Focus areas for development 2013-15 Infrastructure construction Industrial investment and construction projects Industrial operations Focus areas for development 2013-15 Industrial investment and construction projects Industrial operations Building renovation Infrastructure construction Private DIY consumers 76
Customer First success story: AST (North-West Speed Diameter) Customer s problem Low experience in such projects Low knowledge about Formwork systems A lot of technological questions Short construction time schedule Ramirent s solution Visit Ramirent Formwork outlet in Finland to show capacity and equipment quality. Visit together with Ramirent Finland specialists construction sites in Vantaa to share knowhow about formwork systems St Petersburg, Russia Discussion with Finnish specialists about suitable solutions. Achieved results Job done within schedule High quality Ramirent rented 4700 sqm slab forms 77
Customer First success story: Construction project in Russia Customer s problem Untypical industrial project Special technical requirements for mounting place and fixing of hoist No operators, no skills to work with hoist No experience with registration in Rostechnadzor (Technical inspection) Ramirent s solution In cooperation with Geda technicians was done special project for fixing We found new outsourcing company close to the customer, who provide operators We contacted the local branch of Rostechnadzor (Technical inspection) to prepare all documents for the customer Renaissance Construction, Novorossiysk Achieved results Ramirent was the only supplier who provide technical solution for mounting and for fixing to the steel frames We provide operator service in the site Our technician made registration of the hoist in Rostechnadzor (Technical inspection) 78
Most important strategic achievements Actions 2011-2012 Increasing of rental turnover. Broadening the geographical presence through network of dealers/agents. Opening of own outlet in Sochi, Russia Increasing of activity in Moscow area Achieved results Net sales in 2012 increased +37% compared to 2010 In 2012, Ramirent was active in 9 regions through 7 customer centers and agents In Russia. New outlet was opened in May 2011. Sochi outlet accounts for appr. 10% from total Russia sales. New outlet in Kaluga (Moscow area). Compared to 2010 Moscow net sales increased +99% To develop regions by opening new outlets in Western and Central regions of Ukraine Lvov and Dnepropetrovsk depots To expand business to DIY stores and to increase customer proximity in Ukraine. Opening of 6 shop-in-shops in DIY stores. DIY's share of total sales in Ukraine:18% 79