EUROPEAN RENTAL MARKET

SUMMARY - CONTENTS

European Rental Market:

Construction MarketsEquipment Markets

Rental Markets

Sustainability:

Markets request of sustainabilityERA view and expectation

Examples of sustainability

CONSTRUCTION MARKETS

In 2009, Total European Construction: - 8,4% (GDP - 4%) at around €1 400 billion

Huge drop in new residential: - 22,5%Sharp decline in non-residential: - 9,7%

Resistance in infrastructure: +1,7%

Wide range among markets from Germany – 1,2%to Spain – 21,5% and Ireland – 32,2%

Source: Euroconstruct

CONSTRUCTION MARKETS

In 2010, Construction Forecast is - 3,3% against 2009

In 2011, Return to growth with forecast at + 1,6%

Acceleration in 2012 at + 2,2%when construction should outperform GDP growth

Construction in Europe represents 11% of GDPWith countries ranging from 5% to 15%

Source: Euroconstruct

EQUIPMENT MARKETS

0

50 000

100 000

150 000

200 000

250 000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009* 2010* 2011* 2012* 2013*

Average 160,000

Europe Sales of construction equipment, 2000-2013 (Units)

Source: Off-Highway Research

RENTAL MARKETS

Total size of the European rental market

Total Turnover for rental without operators reached a peak in 2007 at €25 billion

Decreased: - 2,8% in 2088 - 17,2% in 2009.

After decreasing about 1% in 2010 will be back at €20,2billion

Forecast for 2011: +3,2%

RENTAL MARKETS

in Million € Construction Penetration

Best Estimate Turnover without operators

UK 3,25% 4 920GERMANY 1,30% 3 310FRANCE 1,55% 3 170SPAIN 1,10% 1 370ITALY 0,75% 1 450NETHERLANDS 1,60% 1 120SWEDEN 3,70% 1 120DENMARK 1,50% 405

Main Rental Markets in Europe in 2010

RENTAL MARKETS

In 2009 and 2010 Fleet investment reduced drastically

- in some countries → up to 80% to 90% ↓ from 2008 levels

- in other countries, CapEx less affected with reductions of ~ 25%. Reduction in Fleet sizes

- In some countries → reduced from 14% to 17% in 2009

- In other countries, the fleet sizes remained virtually constant.

RENTAL MARKETS

General Comment on CapEx

- In the early 00’s annual fleet CapEx was typically comprisedbetween 15% and 20% of total fleet value

- The low point was reached at ~ 7% in Western Europe in 2009

- Spending to recover slowly to reach 10% in 2010 and 14% in 2012

SUMMARY - CONTENTS

European Rental Market:

Construction MarketsEquipment Markets

Rental Markets

Sustainability:

Markets request of sustainabilityERA view and expectation

Examples of sustainability

MARKETS REQUEST of SUSTAINABILITY

A Reminder: What is Sustainability?

Definition:

“Development that meets the needs of the present generation without compromising the ability of future generations

to meet their own needs”

The Brundtland Report for the World Commission for Economic Development 1988

MARKETS REQUEST of SUSTAINABILITY

Customer driven: Impact of customer requirements are becoming more onerous

Public expectations: Next generation of Legislative requirements (Resource-efficient and low-carbon economy, Buying green policies in public procurement, Eco Design for Construction Equipment…)

Formal system certification:The formal systems ISO 9001, ISO 14001 and OHSAS 18001 are an excellent platform to use

ERA VIEW & EXPECTATION

ERA → New Committee on Sustainability late 2008, dedicated to reviewing and promoting best practices

relating to all aspects of sustainability(environmental, social and economic).

Two types of deliverables:

1 - A “Framework for Good Practices relating to Sustainability in theRental Industry”.

2 - Factsheets which illustrate several issues mentioned in the framework with concrete examples of achievements/actions taken by rental companies and the benefits delivered.

ERA VIEW & EXPECTATION

1 - Framework

Rental →considered as a fundamentally sustainable activity. Renting equipment is an environmentally sound option compared to everyone buying and owning their own.

Framework aims at supporting rental companies in drafting their CSR policies

Framework outlines the various issues rental companies can consider when looking at the main aspects of sustainability (KPI they can use in relation to each issue.)

EXAMPLES of SUSTAINABILITY

2 - Factsheets

Provide concrete examples of the actions undertaken by leading rental companies relatingto these issues for illustration.

Different aspects of sustainability are closely interlinked, examples outlined in one factsheet can have an impact in several areas:

→ Energy savings for example have an impact on the environment, but can also have a very concrete impact on a company’s energy costs.

EXAMPLES of SUSTAINABILITY

EXAMPLES of SUSTAINABILITY

EXAMPLES of SUSTAINABILITY