Ramirent Plc revised its financial targets due to adoption of IFRS 16
Ramirent Plc Stock Exchange Release February 11, 2019 at 13.00 a.m. EET
Ramirent's financial targets for 2018-2020 have been revised to reflect the impact of the IFRS 16 "Leases" standard, effective from January 1, 2019. The Group's financial target for Net debt/EBITDA ratio has been changed from below 2.5x to below 2.8x at end of each fiscal year. All other financial targets remain unchanged.
After the change Ramirent's financial targets are
|EPS growth (CAGR)||Double digit % over 2018-2020|
|ROCE||16% by the end of 2020|
|Dividend payout ratio||Greater than 50% of net profit for the year|
|Net debt to EBITDA||Below 2.8x at end of each fiscal year|
Impact of IFRS 16 on financial key performance indicators
As communicated on February 8, Ramirent has adopted IFRS 16 "Leases" from January 1, 2019 using the modified retrospective approach, which does not require restatement of the comparative periods. The cumulative impact of implementation is accounted for as an adjustment in the opening equity.
Adoption of the new standard will have effect to many key figures, e.g. EBITDA and EBIT will increase, equity ratio and ROCE-% will decrease and net debt and net debt to EBITDA will increase.
|IFRS 16 impact on KPIs||2018 actual||2018 with IFRS 16 impact|
|Net debt to EBITDA||1.7||2.0|
|Return on capital employed, ROCE %||10.2%||8.9%|
|Comparable return on capital employed, ROCE %||16.8%||14.5%|
Ramirent published its Financial Statement Bulletin 2018 and revised financial information according to the new segment structure on February 8, 2019. More information available on https://www.ramirent.com - Investors
Jonas Söderkvist, interim Chief Financial Officer (CFO), +46 8 624 9502, email@example.com
RAMIRENT is a leading service company offering equipment rental for construction and other industries. Our mission is to help our customers gear up on safety and efficiency by delivering great equipment and smooth service with a smile. We have 2,905 co-workers at 294 customer centers across 10 countries in northern and eastern Europe. In 2018, Ramirent Group sales reached a total of EUR 712 million. Ramirent is listed on the Nasdaq Helsinki (RAMI). Ramirent - Gear Up. Equipment rental at your service
Distribution: Nasdaq Helsinki, the main media, www.ramirent.com