1. EUROPEAN RENTAL MARKET

2. SUMMARY - CONTENTS European Rental Market: Construction Markets Equipment Markets Rental Markets Sustainability: Markets request of sustainability ERA view and expectation Examples of sustainability

3. 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

4. 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 GDP With countries ranging from 5% to 15% Source: Euroconstruct

5. EQUIPMENT MARKETS Average 160,000 Europe Sales of construction equipment, 2000-2013 (Units) Source: Off-Highway Research

6. 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%

7. RENTAL MARKETS

8. 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.

9. RENTAL MARKETS General Comment on CapEx - In the early 00’s annual fleet CapEx was typically comprised between 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

10. SUMMARY - CONTENTS European Rental Market: Construction Markets Equipment Markets Rental Markets Sustainability: Markets request of sustainability ERA view and expectation Examples of sustainability

11. 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

12. 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

13. 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 the Rental 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.

14. 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.)

15. EXAMPLES of SUSTAINABILITY 2 - Factsheets Provide concrete examples of the actions undertaken by leading rental companies relating to 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.

16. EXAMPLES of SUSTAINABILITY