YEARBOOK 2020 - Renta

YEARBOOK 2020

CONTENTRENTA 2020Renta in brief .......................................................................3CEO’s review ........................................................................4Highlights 2020 ....................................................................6

STRATEGYBusiness model ...................................................................7Strategy ................................................................................8Vision ....................................................................................9Digitalization ...................................................................... 10Renta in the eyes of the owner ......................................... 12

BUSINESSFinland ............................................................................... 14Case: YIT ............................................................................ 15Sweden............................................................................... 16Case: Implenia ................................................................... 17Norway ............................................................................... 18Case: Aker Solutions ......................................................... 19Poland ................................................................................ 20Cases: SPEC-BRUK and PP-H KOS Jan Kos Krakow...... 21

RESPONSIBILITYResponsibility highlights ................................................... 22

GOVERNANCEBoard of Directors ............................................................. 24Management team ............................................................ 25

FINANCEFinancial development ...................................................... 26Selected 2020 financial highlights in accordance with IFRS

Consolidated income statements ................................. 29Consolidated statement of financial position ............... 30Consolidated cash flow statements ............................. 32Consolidated statements of changes in equity ............. 33Selected notes to the financial statements 2020 ......... 34

2Renta Group Oy | Yearbook 2020

Renta Group Oy is a full-service construction equipment rental company operating in Finland, Sweden, Norway and Poland. Renta’s rental offering covers a wide range of construction machinery and equipment and related services.

Founded in 2016 in Finland, Renta is a disruptor in the equipment rental industry and an industry pioneer in digitalisation. An agile and efficient organisation, the ability to innovate and the ease of rental have only in a few years made us a forerunner in the markets where we operate.

As a strongly growth-oriented company, we want to be a leading player in our industry in the Northern Europe. Our growth strategy is based on organic growth and acquisitions.

RAPIDLY GROWING INNOVATOR OF THE EQUIPMENT RENTAL BUSINESS

Our way of working with customers makes us the most attractive rental partner in the Northern Europe.

Renta in brief


A YEAR OF STRONG AND PROFITABLE GROWTH FOR RENTA

CEO’s review

We have been strengthening our market position with determination and I am happy to say that we now have two strong growth engines: Finland with its first in class profi-tability and Sweden that grew, due to the expansion of our network, into our biggest country of operation in 2020. Our growth was very strong also in Norway and we started operations in Poland with three locations

during the year. We have also been deve-loping the Group structure and operating model systematically. This means even better operational efficiency as well as transparency and manageability.

We are a young and bold challenger in the business and invest substantially in digital services; we are extremely proud of our position as the digital pioneer in our

2020 was a year of strong, profitable organic growth for Renta. Our net sales grew by 14.1% and amounted to EUR 210.0 million. Our growth rate was above the general market growth in all the markets, and the impacts of the COVID-19 pandemic on our operations were rather limited. The strongest growth was seen in Sweden. We managed to maintain our excellent profitability and our cash flow improved significantly. Even though many of industrial maintenance projects were postponed and events were cancelled due to COVID-19, construction projects stayed active in all our market areas. All in all, 70% of the Group’s net sales came from the rental services for new construction and renovation in 2020. "We are a young and

bold challenger in the business and invest substantially in digital services."


field. It is our ambition to renew and modernise the industry practices and make the rental experience easy for our customers and own employees. We took major steps in 2020 by successfully launching our digital spear-head application Renta Easy in Sweden and Norway. Our digital work also attracted international attention within the industry.

Renta is now a genuinely international growth company. During our brief history of operations, we have proven our ability to grow efficiently into new markets and to become a significant operator in the Northern Europe. Our objective is to strengthen our position further and become one of the leading operators in our industry in Northern Europe. Our goal is to double, and further triple, our net sales in next coming years and maintain good operational margins. Both organic growth and acquisitions form the core of our growth strategy.

Our growth is driven by the increasing rental pene-tration, growing renovation market and booming infra-construction market which, in turn, are based on the big megatrends such as urbanisation, the sharing economy and sustainable development. The growth of rental penetration is supported by the customers’ increa-sing needs to focus on their core businesses and release capital from secondary functions, challenge to follow both technical development of equipment and digital services and environmental regulations. Customers will need professional rental suppliers to meet all these expecta-tions and requirements.

Despite the general uncertainty due to the COVID-19 pandemic, 2021 has got off to a good start. We are focu-sing on growth while also keeping ourselves agile even from the risk perspective. Our customer base is well balanced and we are not dependent on any individual customer or industry. We are strong over economic cycles, and our extensive product and service offering reduces our sensitivity to cyclicality.

The Renta way of working is based on respect and trust. We strongly believe in local operations and a decentralised management model, light and efficient structures as well as innovations. We believe that we are just as good as our local teams are in the cooperation with the local customers.

In 2021, we will continue to expand the network in Sweden and speed up the building of national networks in Norway and Poland. We also plan to gain a foothold in the Danish market.

You are holding our Renta Yearbook 2020, where we wanted to introduce Renta in the light of IFRS standards for the first time. Even though our official financial statements 2020 are still according to Finnish Accounting Standards (FAS), we have reached full IFRS compliance and we are happy to present selected highlights of IFRS 2020 figures.

I wish to give my warmest thanks to our customers in 2020 for their trust and adaptation to the new situation. To everyone working at Renta, my warmest thanks for your excellent co-operation and effective performance in the midst of uncer-tainty.

Kari AulasmaaCEORenta Group Oy

"Renta is now a genuinely international growth company. During our brief history of operations, we have proven our ability to grow efficiently into new markets and to become a significant operator in the Northern Europe. "


HIGHLIGHTS 2020WIDE GEOGRAPHICAL FOOTPRINTDepots by location, Q1/2021

NET SALES, MEUR

210EBITDA-MARGIN

38%NET SALES GROWTH RATE

14.1%NUMBER OF EMPLOYEES,

31 DEC, 2020

760+NUMBER OF LOCATIONS

79

Finland .....45%Sweden.....47%Norway .......7%Poland ........1%

Renta Market

NET SALES BY SEGMENTRENTA'S GROWTH VS. MARKET GROWTH

-.

FI SE NO

8.5%

12.4%14.1%

3%

-1% 1%


Business model

RENTA IS A GENERALIST EQUIPMENT RENTAL COMPANY

RENTA HAS A BROAD PRODUCT OFFERING BENEFITS OF BEING A GENERALIST

Tools and light equipment

Earthmoving equipment

Site modules

Power and heating

Lifts

Scaffolding and weather protection

A BROAD CUSTOMER BASE IS SERVED

Housing ................................................ 34%Renovation ........................................... 29%Infra-construction ............................... 12%Services .................................................. 7%Industries ............................................... 6%Other .................................................... 12%

One-stop shop for customers

Broad customer base served through same infrastructure and fleet

Mitigate seasonality

Cross-selling opportunities

Customer breakdown by sector


RENTA’S WAY

UrbanizationDigitalization

Sharing economy Sustainable development

We are professionals worth your trust

Our way of working with customers makes us the most attractive rental partner in the Northern Europe

Management model: Trust and respect

Values: Understanding the customer, Entrepreneurship, Reliability, Innovativeness

Local Focus We know our

local customers

Entrepreneurial attitude

Owned by employees

No extra bureaucracy

Agile and lean structure

Decentralized organization

Low fixed costs

Trustworthy people

Scalability, locally and

internationally

Innovation and ease of renting

Multichannel experience

Simple and easy to use services

Transparency and security of supply

New service models

Winning culture Trust

People first

Openess and Transparency

Freedom and authority to

make decisions

Personnel well-being

MEGATREND MEGATREND

MEGATREND MEGATREND

Renta Group Oy | Yearbook 2020 8

Vision

THE AMBITION IS TO ESTABLISH A STRONG PRESENCE AROUND NORTHERN EUROPERenta 2015 Renta 2020 Renta 2025

• Revenue MEUR: 14• EBITDA MEUR: 5• 50 employees

• Revenue MEUR: 210• EBITDA MEUR: 80• 762 employees

• Revenue 2-3x current size• EBITDA margin: >35%• New markets: Baltics, Denmark


Digitalization

INDUSTRY PIONEER IN DIGITALIZATION

Renta DigiOffice aims at building, in cooperation with the business units, modern digital solutions and capabilities that can be scaled cost-efficiently to facilitate the daily work of both the customers and the Renta people. Our goal is to support Renta’s growth strategy through efficient fleet management and unparalleled customer experience. Many of the DigiOffice innovations we have launched have turned into established industry practices.

2020 was a year of internationalization for our digital strategy with the launch of our top application, Renta Easy, in the Swedish and Norwegian markets. During the year, we also invested significantly in data security, knowledge management and the utilization of artificial intelligence. Despite the COVID-19 pandemic, we continued to imple-ment our digital strategy as planned.

Our objective is to be the industry pioneer leading the way in digitalization, and to proactively observe the future development needs. In addition to our leading digital specialists, our successful development efforts are supported by our long-term partner network. Renta owns

Digitalization is accelerating, and the importance of knowledge management is increasing in significance also in the construction machine and equipment rental business. Renta DigiOffice is the group’s R&D unit that was established in 2018 to advance Renta’s internal capability to operate as the industry pioneer in digitalization and to build significant digital competitive advantage for Renta.

“When we succeed in enabling our customers to optimize the fleet they are renting with our digital competences, we also optimize our own operations. When we manage to use our existing fleet to serve an even larger number of customers, we can invest on machinery even more efficiently based on actual use. This allows our customers to save in rental costs and Renta in investments.”

Joel Särkkä CIO


The benefits of digitalization to our customers

LeadershipDevelopment is lead by business, and each project has a business leader behind it

ScalabilityAll the solutions, services and concepts created by DigiOffice are owned by Renta, usable and scalable in all the countries in which Renta operates

TechnologyDevelopment done with modern tools on modern platforms

PeopleBy recruiting the best people, and partners to DigiOffice’s ecosystem, we will be able to build by far the best solutions in the business

all the applications designed and implemented by Digi-Office, giving us an enormous competitive advantage far into the future. All the applications we use are designed with an international approach and can be scaled to all of our countries of operation.

For Renta, digitalization means making things easy for our customers and ourselves. It is our vision that each Renta unit uses its own application as an integrated part of its daily work and customer service. The customer meets all Renta depots and gets all the relevant information through the

Renta Easy mobile application, showing the customer- specific pricing, real-time utilization rate of machinery and customer-specific invoicing information. Renta Tools allows the customer to see the annual inspections and repairs of machines, Renta Modules presents the construction sites, and Renta Task can be used to order site services. All the applications produced by Renta DigiOffice are integrated seamlessly into the group’s ERP systems. The customer experience is fluent, and the customer obtains all the available information transparently in real time.


Renta in the eyes of the owner

GROWTH SUPPORTED BY A SOLID INDUSTRIAL VISIONIntera Partners is a Finnish growth-oriented private equity firm focusing on accelerating the growth of its portfolio companies. As a majority owner, Intera has been supporting Renta in implementing its growth strategy since 2016. From the owner’s perspective, Renta is exceptional in many ways.

Intera Partners’ investment philosophy is to build success stories around sustainable growth. Intera invests in Finnish and Swedish companies with strong growth and development potential, often in the service sector. The aim is to considerably grow and strengthen the strategic position of portfolio companies, often also meaning inter-national expansion during Intera’s ownership. Intera works closely together with the management to support the achievement of common goals.

“Renta’s experienced industrial advisors and visionary management have, from the beginning, had a strong vision of how to do equipment rental business more efficiently and smartly. The large but highly fragmented and tradi-tional construction equipment rental market provided excellent preconditions for creating a company to chal-lenge the status quo of the market.”

Right from the beginning, Renta’s development has been based on a set of values focusing on understanding

the customer, an entrepreneurial spirit, reliability and innovation. The operations were first started in Finland, but the company soon expanded to the Swedish and Norwegian markets, mainly through acquisitions.

“In terms of acquisitions, we work very closely with the company to thoroughly determine the kinds of companies to be acquired into the group. In particular, we have paid a lot of attention to the culture and operating principles of the companies to be acquired. A decentralized manage-ment model based on local presence has given excellent results, and also acquired operations have continued to grow strongly as a part of the Renta Group.”

Renta is now a genuinely international growth company. Systematic work has transformed a small local operator into a leading Nordic innovator in the construction equipment rental market. Renta’s sustainable growth is based on megatrends such as the growth of the sharing economy, and the increased penetration level of construc-tion machine and equipment rental as customers focus on their core business and digitalization.

“We believe that Renta’s story is only just beginning. We see significant potential in Renta, and the next objective is to double or triple the company’s net sales. In addition to the strong organic growth prospects, we see a lot of inte-rest from companies to join the expanding Renta team.”

Christoffer ZilliacusPartner, Intera Partners Oy




RENTA FINLANDKEY EVENTS IN 2020• At the end of 2020, Renta had 30 depots in Finland.

The development of the network continued by expanding and updating the premises.

• Our growth continued in 2020 despite the COVID-19 pandemic.

• We have established our position as one of the top three rental companies in Finland.

• During the year, we concluded new, significant coopera-tion agreements with nationwide construction groups.

DEVELOPMENT OF OPERATIONS IN 2020• The scaffolding and weather protection business deve-

loped positively throughout the year. The growth was driven by renovations and weather protection becoming more popular in the construction of new buildings.

• The equipment rental business continued to grow in 2020. The projects started at the end of 2019 and in early 2020 supported the market. The rapid growth experienced at the beginning of the year slowed down somewhat towards the end of the year.

• Customer volumes developed favorably in all the segments.

• We started local manager training to support our local operations and launched the Safe Renta campaign to promote occupational safety.

• Our proprietary digital tools were used even more actively by our customers and in Renta’s internal operations.

SALE SPLIT PER CUSTOMER SEGMENT

28

2016PF 2017PF 2018PF 2019PF 2020

4874 88 96

14%

Pre-acquisition As part of RentaCAGR 18-20 (local currency)

Renovation .........................37%New construction ...............31%Infra-construction ................8%Industrial segment ..............4%Other ..................................20%

FINANCIAL DEVELOPMENT IN 2020• Our net sales increased by 8.5% and amounted to EUR

95.9 million. The first three quarters in particular were periods of strong growth for our business.

• The growth was 100% organic.

OUTLOOK FOR 2021• The number of started construction projects developed

positively at the end of 2020 and we believe that this will be reflected positively in the equipment rental business in 2021.

• We expect Metsä Fibre’s investment decision in Kemi to have a positive impact on our equipment rental operations and increase the demand for construction machinery. Accor-dingly, we will open a new depot in Kemi in spring 2021.

• Increased renovation projects create good growth oppor-tunities for our scaffolding and weather protection operations. We believe that the market will remain active especially in growth centres, in the Helsinki metropolitan area as well as in Tampere, Turku and Oulu. We also aim to expand our customer base into industrial and infra-structural customers.

• We will continue to implement and develop digital tools.

NET SALES, MEUR

Kari-Tapio SaarelaCountry Manager, equipment rental

Jarno TuuriCountry Manager, scaffolding

"We have established our position as one of Finland’s leading operators in the industry."

NUMBER OF EMPLOYEES, 31 DECEMBER

280


PARTNERING WITH YIT IN THE MANAGEMENT OF CONSTRUCTION SITE EQUIPMENT AND CONDITIONS

Case: YIT

YIT is the largest Finnish and a significant North Euro-pean urban developer and construction company. The company’s history includes a merger of two major Finnish construction companies, YIT Corporation and Lemmin-käinen Oyj in 2018. The merger created a need for YIT to decide whether to make additional equipment investments or to find a rental partner to supplement the company’s own equipment.

“We decided to start renting equipment in addition to our own equipment. Following competitive bidding, Renta was selected as YIT’s equipment partner, and the coopera-tion started in January 2019.”

The partnership agreement covers all the construction equipment and machines as well as the related services offered by Renta. YIT uses its own equipment mainly in the Helsinki–Turku–Tampere triangle, while some special equipment is used everywhere in Finland. Renta is respon-sible for the provision of equipment to YIT’s sites in other parts of Finland and the supply of additional equipment during peak seasons in the areas where YIT also uses its own equipment.

“Making the agreement and finding common ground with Renta was quite easy. We selected Renta because of its convincing network covering all of Finland, its response time and the high quality and versatility of its modern fleet.”

In construction, approximately 3–5% of the expenses

arise from machines and equipment. The importance of resources used on this is, however, emphasised whenever there are problems with the equipment. In addition to quality equipment, YIT values flexibility and agile opera-tions, a flat organization, response rate and local deci-sion-making and service in its partner.

“The agreement with Renta creates added value for us since we do not need to invest in all the equipment we need. The quality of equipment is good, and Renta has also been making comprehensive investments in new equipment in step with its growth. In this cooperation, both parties want to find a win-win situation where both parties get support for their operations and customer understan-ding is at a high level.”

The role of a rental equipment partner nowadays exceeds the mere rental of machines or equipment as services related to the conditions, for example, are emphasised. Furthermore, digital services used by both parties make the work easier for both the customer and the partner.

“We buy conditions, such as heating of a specific space, for the site. We value a partner offering a comprehensive solution so that we get the conditions purchased, including the equipment and service, installed and ready to operate. Renta’s digital solutions also make our life easier in the field. Renta Easy tells us what fleet YIT is using. Further-

more, Renta offers smart solutions for the design of site units, allowing us to use a virtual headset to see what the space will look like.”

YIT measures the service level of its own fleet and Renta’s services on its sites each year. Measurement gives valuable information about the fluent workflow of sites and helps develop the cooperation further.

“The score of our own service was only slightly higher than the score of Renta’s service given in the field. On a scale of 1–5, Renta’s score was 4. I find it important in terms of cooperation that we use quarterly monitoring and interact in open dialogue. This allows us to intervene in any issues and areas of monitoring quickly and to modify our operating models based on the feedback, if necessary. The cooperation is based on the principle of continuous improvement.”

Kimmo Karppanen, CEO, YIT Kalusto Oy


RENTA SWEDENKEY EVENTS IN 2020• Despite the COVID-19 pandemic, Renta Sweden has

been able to merge all its local entities under the Renta brand, becoming one unified company.

• Continued organic growth with three green field estab-lishments, in Lund, Uddevalla and Eskilstuna, and one acquisition.

• All depots are certified, now working with standardized processes. We are now able to deliver the same broad service offering and solutions to all our customers in all depots.

DEVELOPMENT OF OPERATIONS IN 2020• During 2020 our focus was mainly on organic growth,

brand development and operational excellence. • In 2020, all depots had an audit for ISO 14001 and ISO 9001.

All depots were approved and included in the certificates. • Sustainability related actions were taken to reduce

energy consumption locally. More than 200 measures were taken for lowering electricity and heating consumption. The number of chemicals in operations was reduced from 500 to 180. New agreement was signed for all depots with an energy company to supply electricity from renewable energy sources only.

• A new educational program, The Rentacademy, started during the year.


n.a.

2016PF 2017PF 2018PF 2019PF 2020

74 77 82 99

15%


Renovation .........................25%New construction ...............40%Infraconstruction .................8%Industrial segment ..............6%Other ..................................21%

FINANCIAL DEVELOPMENT IN 2020• Net sales increased and were EUR 98.6 million. • Continued profitable growth for Renta Sweden, 2020

showed an organic growth of 13.3%. • Strong sales in the second half of 2020, while the first

half of the year had extra startup and merger costs. Good development was related mainly to the new depots from 2019 and 2020.

OUTLOOK FOR 2021• Net sales is expected to grow during 2021 despite a

general decline in the rental market. • Our focus for growth is in the Stockholm region. We are

aiming to open two depots in Stockholm and strengthen our geographical presence with another two depots in other parts of the country.

• Competencies are secured in the organization with focus on sales, ensuring high number of customer interactions. Our digital journey will continue with the implementation of new digital tools.

NET SALES, MEUR

“Renta is the challenger in the market, acting as a local doer but with the big company's muscles.”


410

Joacim Johansson Country Manager


THE STRATEGICALLY IMPORTANT VARBERG TUNNEL PROJECT CONNECTING SWEDEN TO CENTRAL EUROPE

Case: Implenia

Implenia Sverige is part of the multinational Implenia Group which is based in Switzerland. Implenia Sverige is the leading company for challenging infrastructure projects in Sweden. Implenia’s largest ongoing project with a value of EUR 344 million is the strategically important Varberg railway project at the west coast of Sweden.

The project is covering the construction of significant new railway structures at the Varberg area to better connect the passenger and freight traffic from the large cities of Gothenburg and Lund as well as the Skåne area further to Copenhagen, Denmark, and Central Europe. The contract includes over nine kilometers of railroad tracks, of which over three kilometers in the new tunnel, as well as bridges and other structures. Renta is cooperating with Implenia as the partner for rental equipment and machi-nery in the Varberg tunnel project since 2019.

“The Varberg tunnel project is enormous − not only in terms of size but also regarding its strategic importance for the passenger and freight traffic on railroad connecting the south of Sweden with the rest of Europe.“

To keep the tunnel project running smoothly the site needs quality equipment and work site solutions on a daily basis. Renta has a framework contract with Implenia and is offering a full range of equipment and machinery as well as service and logistics from the on-site Renta depot shop in Varberg.

“Renta is the most attractive rental services partner to take care of the full service for rental equipment and machinery in the Varberg tunnel project. Their service is local although the company is widely spread in Sweden. Renta is bringing added value to our business by sugges-ting new solutions and providing a fleet that supports us to keep our deadlines. We can rely on the fleet’s availability and on Renta’s local service.”

Renta is also offering Implenia various customized other services e.g., assembly service for “manshed”, tunnel equipment and traffic-route material in the project.

“For Implenia it is important to have a short, efficient and reliable supply chain. With Renta we can get every-thing from one operator which makes things easier for us. We can be almost anywhere in Sweden and still close to a Renta shop.”

Renta’s strength lies in the range and quality of the fleet and the fast service and local availability. Also, the logistics service works reliably and fast throughout Sweden in case of special needs.

“The machinery and equipment are of high quality and serviced locally. The local on-site Renta depot understands our business and serves us with in a professional manner. We have a good relationship and an on-going trustful dialogue. Renta Varberg has been a supportive partner all along the project”.

Renta is also collaborating with Implenia on other projects in other parts of Sweden for example in the large city areas of Gothenburg and Stockholm.

Peter Claesson, Area manager South, Implenia Sverige

Photo: Kasper Dudzik


RENTA NORWAYKEY EVENTS IN 2020• At the end of 2020, Renta had 5 rental depots in Norway:

Bergen, Narvik, Oslo, Stavanger and Stord.• Renta was one of the largest rental machine and equip-

ment suppliers on windmill projects in Norway. • We were able to take full advantage of the special tunnel

machines we developed. The first customer deliveries were in the autumn of 2020.

DEVELOPMENT OF OPERATIONS IN 2020 • Infrastructural construction was a significant growth

driver for us.• Although our overall position in the market is not strong

yet, our position is particularly strong in demanding infra and tunnel projects.

• We were able to utilize cross-border co-operation in Norwegian and Swedish infrastructure projects.

• Renta is the first rental company in Norway to be certi-fied with “Miljøfyrtårn”. The certificate is even stricter than ISO14001. Certification is approved for 2020 and will be official April 2021.

• The digitalization process in Norway has introduced Renta Easy into the market with good success and good feedback from our customers. Renta is becoming known as one of the market leaders in terms of digitalization, and we look forward to implementing more good solu-tions in 2021.


n.a.

2016PF 2017PF 2018PF 2019PF 2020

1013 14 15

13%


New construction .................9%Infraconstruction ...............56%Industrial segment ............19%Other ..................................16%

FINANCIAL DEVELOPMENT 2020• Our growth continued in 2020 despite the COVID-19

pandemic and we were able to increase the topline growth by 17% even though the overall market declined.

• More than half of the net sales came from infra-construction.

OUTLOOK FOR 2021• The growth has continued during Q1/2021 and we expect

the growth to continue throughout 2021.• Our goal is to complete our general rental offering and

expand our network to 15 depots during 2021.• We will continue to introduce new digital tools to our

clients.

NET SALES, MEUR


51

“Renta’s position in Norway is particularly strong in demanding infra and tunnel projects.”

Leif-Martin Drange Country Manager


RENTED LIFTS AND TRUCKS FOR THE AKER SOLUTIONS STORD YARD IN NORWAY

Case: Aker Solutions

Aker Solutions delivers integrated solutions, products and services to the global energy industry. The company enables low-carbon oil and gas production and develops renewable solutions to meet future energy needs. By combining innovative digital solutions and predictable project execution Aker Solutions accelerates the transition to sustainable energy production.

Aker Solutions is active worldwide in over 20 countries and 50 locations, employs over 14,000 employees and the revenue of the company in 2020 was EUR 2,908 million.

Renta is partnering Aker Solutions in Norway at the Stord yard located on the west coast of Norway between the cities Bergen and Stavanger. The large 31,8000 square metre yard is tailored for assembling large platform topsides and modules for onshore facilities and decom-missioning projects.

Renta offers the Stord yard lifting equipment, trucks and also special equipment for the yard operations. The co-operation goes long back the agreement between Aker Solutions and Renta was signed over six years ago.

“For our business the availability of quality machines

and equipment with a fast delivery is crucial. We chose Renta as our partner because of their close location to our yard. Our working methods need very good flexibility from our partner. Renta’s definite strength is that the opera-tions and logistics run smoothly and effectively, and we are serviced by a team of experts.”

Renta gives us added value, because with a rental partner we have the full flexibility with the equipment. We need a partner that has reliable machines and can meet our demand, with an ‘in-and-out-principle’. The machines can be in use for a fairly short period and the yard needs very flexible delivery.”

“From the procurement perspective, we are glad to be offered a good digital solution from our partner. At the

moment we are using Renta’s application to measure the usage of different equipment and machines. This helps us plan and report the exact need of rental machines and equipment.”

”I appreciate Renta’s expertise and flexibility. They know our business, the Aker Solutions Stord yard and under-stand our needs. If you know your market and operational environment thoroughly, you can provide a good solution to the customer.”

Edgar Inge DamåsTopside & Facilities – Head of Yard Procurement Stord, Aker Solutions


RENTA POLANDKEY EVENTS IN 2020• We started our Polish operations in the spring of 2020 in

three locations: Wroclaw, Katowice and Krakow.• In a short period of time, we have introduced a new

brand to the market, increased our recognition and built up our reputation amongst Southern Polish customers in particular.

DEVELOPMENT OF OPERATIONS IN 2020• The COVID-19 pandemic caused significant challenges

to the starting of our business and meetings with custo-mers. In spite of the challenging situation, we built a customer base of ca. 650 customers during the year and established confidential relationships with our custo-mers. Our main customers are mid-size private and regional companies active in construction, but we have a lot of smaller customers as well.

• We are a challenger in the market that includes both global general rental and specialized companies and small local rental operators. Our competitive strengths include the new machine and equipment base, extensive product offering and a motivated group of professionals with years of experience in the rental business who knows how to build relations with customers.

• Our modern, environmentally sustainable fleet also helps our customers meet their own sustainable deve-lopment goals.

1

n.a.


FINANCIAL DEVELOPMENT IN 2020• Our net sales amounted to EUR 560 thousand, and

judging by the operating margin, we reached the break-even level at the end of the year.

OUTLOOK FOR 2021• In 2021, our objective is to expand our customer base,

strengthen our market position and continue building our network. We will open four additional depots in the biggest cities of Poland.

• We will introduce new products into our fleet and Renta Easy – modern digital tools to facilitate the everyday work of both our customers and our own staff.

NET SALES, MEUR

“ We intend to continue the determined implementation of our strategy and business operations and to build our position as a national rental operator. Our goal is to build a network of 20–25 locations covering the whole country that serve our customers as one stop shops.”


21

n.a. n.a. n.a. n.a.

2016PF 2017PF 2018PF 2019PF 2020

Tomasz WalawenderCountry Manager


Case: SPEC-BRUK Sp. z o.o. SK Case: PP-H KOS Jan Kos Krakow

”SPEC-BRUK is one of the biggest companies in Poland specializing in earthmoving jobs in road and building construction. Renta is one of our part-ners. We are currently renting Renta’s compactors, power generators and compressors mainly for two projects: an OPEL manufacturing plant in Gliwice and a logistics warehouse for the company 7R in Czechowice.

We are very satisfied with Renta. Renta employs professionals who are really engaged. Their flexibility and fast reaction time are helping us a lot in conducting our business. Renta has new, high quality equipment which meets all environmental regula-tions. We can recommend Renta as a reliable rental partner.”

”Our company carries out earthmoving jobs such as the leveling of land and base course for roads and logistics warehouses. We are renting different types of construction machinery from Renta mainly for our Pannatoni and Schenker warehousing projects.

Our first rental with Renta began in September 2020 and it continues today. We are very satisfied with our cooperation with Renta. They are a reliable partner for us. Deliveries are always on time and we haven’t had problems with the quality of equip-ment. Employees are very competent and react very fast to our needs. I would give Renta a 9 out of 10.”

Renta Oy participates in the non-road mobile machinery Green Deal, which aims to reduce the carbon dioxide emissions of non-road mobile machinery. The reduction is obtained through increasing the availability of fully electric and other low-emission machinery, by encouraging their broader use and by supporting measures to reduce the carbon dioxide emissions of non-road mobile machinery through new solutions or in other ways.

We want to promote the increased use of fully electric lifting equipment in accordance with the Green Deal with the aim of having their share of rental equipment grow to at least 80% by the end of 2022 and at least 90% by the end of 2025. We also aim to promote the increased use of fully electric counterbalance forklifts and wheel loaders in our fleet of machinery. With regard to our existing equipment, we will use modern technology in monitoring and repor-ting on the utilisation rates of machines and provide our customers with real-time data on the utilisation rates and carbon footprint of rented machinery. We will also empha-sise renting as part of the circular economy approach in our communications, which will encourage our employees and customers to reduce the carbon dioxide emissions caused by non-road mobile machinery.

THE GREEN DEAL MOTIVATES US TO PROMOTE THE CIRCULAR ECONOMY AND REDUCE THE CARBON FOOTPRINT OF CONSTRUCTION EQUIPMENT RENTAL

OUR COMMITMENT SUPPORTS THE FOLLOWING AGENDA 2030 GOALS:

“We are committed to increasing the share of fully electric machinery in our fleet, improving the efficient utilisation rate of rented machinery and increasing our employees’ and customers’ awareness of solutions and operating practices that have less adverse impacts on the environment.”

MORE INFORMATION:https://sitoumus2050.fi/tyokone#/https://sitoumus2050.fi/green-deal#//details/396897


https://sitoumus2050.fi/tyokone#/

https://sitoumus2050.fi/green-deal#//details/396897

https://sitoumus2050.fi/green-deal#//details/396897

Renta employee satisfaction(scale 1–10)

Well-being at work

8.0

55.33

4.1/5

eNPS (Net Promoter Score)

Information concerning Renta Finland.


BOARD OF DIRECTORS

Kari Kivikoski Chairman of the BoardMember of the Board since 1/2017Non-Executive DirectorVice Chairman of the Board at A-Katsastus Group

Erkki Norvio Member of the Board since 2/2016Commercial councellorSenior advisor, Intera Partners OyPresident and CEO and board member of Ramirent 1984–2015Board member at Consti and Rototec

Kari Kallio Member of the Board since 4/2016President and CEO of Ramirent 2006–2009Board member at Styrud Ingenjörsfirma and Prefabmästarna

Janne Näränen Member of the Board since 2/2016Partner, Intera Partners OyBoard member at PHM Group and Kreate

Juhani KattilakoskiMember of the Board since 2/2016Founder of Tuplarakenne, Telineykköset and TelinekymppiExperience in scaffolding 40 years

Christoffer Zilliacus Member of the Board since 2/2019Partner, Intera Partners OyBoard member at Roima Intelligence and Merivaara


MANAGEMENT TEAM

Kari AulasmaaCEOExperience in rental 26 yearsBoard member at Havator Group

Leif-Martin DrangeCountry manager NorwayExperience in rental 10 years

Lauri MatikainenCFOExperience in rental 12 years

Jarno TuuriCountry manager Finland, scaffoldingExperience in rental 22 years

Joacim JohanssonCountry manager SwedenExperience in rental 4 years

Joel SärkkäCIOExperience in rental 4 years

Kari-Tapio SaarelaCountry manager Finland, equipment rentalExperience in rental 10 years

Thomasz WalawenderCountry manager PolandExperience in rental 20 years


Financial development

EXCELLENCE IN PROFITABILITY, CASH FLOW AND LIQUIDITY Renta is among the fastest-growing rental companies globally with best-in-class profitability. In 2020, we also proved our resilience during the COVID-19 pandemic. Our top-line continued to grow with double-digits in 2020 as we sustained our growth strategy and gained market shares. We have built very profitable operations with EBITDA margins above the industry average.

In 2020, our net sales grew by 14.1% and amounted to EUR 210.0 (2019: 184.1) million. The growth was purely organic. Our EBITDA was 79.7 (72.6) million, showing an increase of 10% from the previous year. EBITDA margin was 38.0% and stayed on excellent level (39.4% in 2019) despite the COVID-19 pandemic.

GROWTH RATE FASTER THAN THE MARKET AVERAGE IN ALL OUR MARKETSRenta's net sales increased in all the segments. The most substantial growth was seen in Sweden, where we got all our depots to full speed following the new openings in 2018–2019. The net sales in Sweden were EUR 98.6 (81.5) million with a growth of 21% and EBITDA margin of 35.7% (39.9). Our growth in Sweden was driven by recove-ring market situation and high level activity especially in infra construction. In 2020, Sweden grew into our largest segment in terms of net sales, the number of depots, and employees.

The net sales in Finland were EUR 95.9 (88.3) million with a growth of 8.5% and an EBITDA margin of 41.3%

(39.5), Finland being our most profitable segment. Our Finnish operations are well established, and our strength lies in a balanced and comprehensive product and service mix together with comprehensive nationwide network. Flattening growth during the second half of 2020 in rental of the machines was compensated by growth in the scaf-folding business.

The net sales in Norway were EUR 14.9 (14.2) million with a growth of 4.8% and EBITDA margin of 35.8 (37.0) %. Growth in local currency was 14%. Norway´s growth was driven especially by infra construction, where our special know-how is highly valued by our customers. Our infra expertise in Norway has also been utilized in projects in Sweden and Finland.

In Q2/2020 we expanded our operations to the Polish market with the opening of three depots. Net sales in Poland amounted to EUR 0.6 million. Despite the challeng ing timing of the opening in a new market in the middle of the COVID-19, we managed to ramp-up the operations and reached the break-even level in EBITDA by the end of the year. We aim to continue expanding in the Polish market and build a national network of 20–30 locations within the next couple of years.

PERFORMANCE

20.945.29.0%

30.3%36.7%

39.4%38.0%

107.7

184.1210.0

1.9 13.739.5

72.6 79.7

Revenue EBITDA EBITDA %

2016* 2017* 2018* 2019 2020

NUMBER OF PERSONNEL NUMBER OF LOCATIONS

106 15

2016 20162017 20172018 20182019 20192020 2020

164 24

532 60685 73762 79

Renta Group Oy | Yearbook 2020 26

All in all, the total impact of the COVID-19 pandemic on our operations was limited. The pandemic did not signi-ficantly affect the construction volumes in our countries of operations, for example, unlike in southern Europe, where total lockdowns of construction sites, caused rental companies´ temporary revenue drops even up to 90%.

EXCELLENT EBITDA MARGIN AND CASH FLOW DESPITE COVID-19The core factors contributing to the increased profitability were our decentralized operating model and our lean cost structure. Completion of the company structure harmo-nization in Sweden had material impact on operational efficiency in Sweden. This also allowed us to complete the roll-out of our group level real time operational and financial reporting systems to Sweden.

To manage the COVID-19 pandemic, we implemented a demand-based investment process that allows us to respond quickly to the changes in customer demands. We further improved our capability to manage CAPEX, optimizing investments over time and targeting them to the most relevant fleet categories based on accurate and real-time information. The new investment model also improved our cash flow and liquidity significantly.

ENTREPRENEURSHIP AND LOCAL PRESENCE AT THE CORE OF CULTURE In 2020, Renta had 750 employees on average, with an increase of 18.3% year-on-year. The number of emplo-yees on 31 December 2020 was 762, divided between the segments as follows: Finland 280, Sweden 410, Norway 51 and Poland 21.

An entrepreneurial attitude and a decentralized opera-ting model, and a solid local presence are at the core of Renta's culture. Approximately 55% of our shares are owned by funds managed by Finnish Private Equity firm Intera Partners, but we have offered our key-employee shareholder programme widely to our employees. We are very happy that almost one-third of our employees are also shareholders of Renta today. The employees have been included in developing the Renta´s entrepreunial culture right from the beginning.

Our management model is lean and agile and brings decision-making powers close to the customer. This, together with our efficient digital tools exempts our local depots from unnecessary bureaucracy and allows fast and straightforward decisions. Our cost structure is lean and competitive, as well.

AIMING AT GROWTH IN ALL SEGMENTSOur goal is to continue organic growth in all segments and maintain our excellent profitability in 2021. In addition, we seek additional growth opportunities through M&A in all our current segments and other markets in the Northern Europe. During 2021 we have signed the agreement to acquire the shares of Byggesystemer Norge AS, which will triple our size in Norway. In addition, we have opened our operations in Denmark during the first quarter of 2021.

SHAREHOLDERS 31.12.2020

Intera Partners .............54.23%Intera Fund II Ky .......................... 35.45%

Intera Fund III Ky ......................... 18.78%

Key employees ..............45.77%

"The core factors contributing to the increased profitability were our decentralized operating model and our lean cost structure."

Lauri Matikainen CFO Lauri Matikainen

CFO


SELECTED 2020 FINANCIAL HIGHLIGHTS IN ACCORDANCE WITH IFRSUnofficial, non-audited

EUR 1,000 1 Jan - 31 Dec 2020 1 Jan - 31 Dec 2019Sales 209,950 184,079Other operating income 589 1,870Materials and services -65,129 -56,067Employee benefit expenses -43,751 -37,670Other operating expenses -21,921 -19,599Depreciation, amortisation and impairment losses -74,908 -64,080Operating profit 4,828 8,533Finance income 921 249Finance expenses -16,718 -16,603Net finance expenses -15,798 -16,354Loss before taxes -10,969 -7,821Income tax expense 536 1,199Loss for the period -10,434 -6,622Attributable to Owners of the parent company -10,434 -6,622Loss per share attributable to owners of the parent company

Basic, loss per share (EUR) -0.72 -0.46Diluted, loss per share (EUR) -0.72 -0.46

Loss for the period -10,434 -6,622Other comprehensive income Items that may be subsequently reclassified to profit or loss

Change in translation differences 2,645 -1,106Other comprehensive income for the period, net of tax 2,645 -1,106Total comprehensive income for the period -7,788 -7,728Attributable to Owners of the parent company -7,788 -7,728

CONSOLIDATED INCOME STATEMENTS

Unofficial, non-audited


EUR 1,000 Dec 31, 2020 Dec 31, 2019AssetsNon-current assets Tangible assets 251,791 256,051Goodwill 95,556 89,158Other intangible assets 17,062 18,806Derivative assets 0 53Other non-current assets 218 56Deferred tax assets 1,508 568Total non-current assets 366,134 364,692 Current assets Inventories 1,792 1,887Trade and other receivables 31,839 29,526Cash and cash equivalents 15,286 4,144Total current assets 48,918 35,557 Total assets 415,052 400,250

CONSOLIDATED STATEMENT OF FINANCIAL POSITION 1/2



EUR 1,000 Dec 31, 2020 Dec 31, 2019Equity and liabilities Equity Share capital 3 3Translation differences 1,537 -1,108Reserve for invested unrestricted equity 48,675 46,702Retained earnings -2,847 3,589Result for the period -10,434 -6,622Hybrid loan 52,296 51,440Total equity 89,230 94,003 Liabilities Non-current liabilities Interest-bearing liabilities 166,686 161,732Lease liabilities 54,860 59,228Other non-current liabilities 20,464 15,574Derivative liabilities 298 176Deferred tax liabilities 15,210 15,277Total non-current liabilities 257,518 251,987Current liabilities Interest-bearing liabilities 11,751 10,472Lease liabilities 22,505 19,272Trade payables and other liabilities 27,049 22,371Tax liabilities 7,000 2,145Total current liabilities 68,305 54,260 Total liabilities 325,822 306,247 Total equity and liabilities 415,052 400,250

CONSOLIDATED STATEMENT OF FINANCIAL POSITION 2/2



EUR 1,000 Dec 31, 2020 Dec 31, 2019Cash flows from operating activities Loss before tax -10,969 -7,821Adjustments:

Deprecations, amortisation and impairment 74,908 64,080

Sale of tangible and intangible assets -2,007 -1,422Finance cost (net) 15,798 16,354Other adjustments 2,463 -560

Cash flows before changes in working capital 80,193 70,632Change in working capital

Change in inventories 142 -406Change in trade and other receivables -2,204 -2,537Change in trade and other payables 7,023 2,173

Cash generated from operating activities 85,153 69,862Interest paid -10,854 -16,354Income taxes paid -955 -483Net cash from operating activities 73,345 53,025 Cash flows from investing activities Investments in tangible and intangible assets -44,817 -66,935Proceeds from sale of tangible and intangible assets 2,007 1,422Acquisition of subsidiaries and business operations, net of cash acquired -5,734 -5,824Net cash from investing activities -48,544 -71,337

CONSOLIDATED CASH FLOW STATEMENTS

EUR 1,000 Dec 31, 2020 Dec 31, 2019Cash flows from financing activities Proceeds from interest-bearing liabilities 15,357 46,806Repayments of interest-bearing liabilities -31,484 -29,320Change in invested unrestricted equity fund 1,970 8,364Change in other equity components 856 4,357Other financing items 672 -8,254Net cash from financing activities -12,629 21,953Net cash from operating, investing and financing activities 12,172 3,641

Change in cash and cash equivalents 12,172 3,641Cash and cash equivalents at beginning of the year 4,144 509Exchange differences -1,030 -5Cash and cash equivalents at year end 15,286 4,144



EUR 1,000

Renta Group Share capitalInvested

non-restricted equity Hybrid loansRetained earnings

Translation difference Total

Equity at the beginning of 2019 3 38,338 47,083 3,589 -3 89,009Translation difference -1,106 -1,106Loss for the year -6,622 -6,622Comprehensive income total 0 0 0 -6,622 -1,106 -7,728 Transactions with owners of the company Net issue of treasury shares 8,364 8,364Addition of hybrid loans 4,357 4,357Transactions with owners of the company 0 8,364 4,357 0 0 12,721Equity at the end of 2019 3 46,702 51,440 -3,033 -1,108 94,003

Equity at the beginning of 2020 3 46,702 51,440 -3,033 -1,108 94,003Translation difference 2,645 2,645Loss for the year -10,434 -10,434Comprehensive income total 0 0 0 -10,434 2,645 -7,788 Transactions with owners of the company Net issue of treasury shares 1,974 1,974Addition of hybrid loans 856 856Other changes* 186 186Transactions with owners of the company 0 1,974 856 186 0 3,016Equity at the end of 2020 3 48,675 52,296 -13,281 1,537 89,230

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

*Other changes consist mainly of leasing contracts previously not recognised.



SELECTED NOTES TO THE FINANCIAL STATEMENTS 2020

Segment reporting The operating segments are defined based on regular manage-ment reporting reviewed by the Group’s chief operating decision maker. Segment reporting is disclosure of sales, profit, assets, liabilities and personnel by e.g. line of business or by geographical area. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the CEO of the Renta Group.

Segment information is presented for Renta Group’s operating segments, and according to IFRS 8, the consolidated information is specified by geographical split according to countries. Operat ing segments are managed separately, and they are separately reported in internal management reporting to the CEO. In 2020 Renta had four operating segments: Finland, Sweden, Norway and Poland.

Sales consists of rental income, service income, proceeds from sale of goods and accessories and income from sales of used rental equipment. Segment assets and liabilities are items that are used by a respected segment in its operating activities and can be allocated to the segment on a reasonable basis.

Segment liabilities in the following tables include non–current and current liabilities other than interest–bearing liabilities. The invested capital (capital employed) of a segment comprises the assets and liabilities that the segment utilises in its business operations to the extent assets and liabilities are reported regularly to the chief operating decision maker in Renta Group.

Segment performance is evaluated and decisions on resource allocation are made based on operating result (EBITDA). The CEO (chief operating decision maker) reviews regularly a report of the operating result and invested capital of the operating segments.

The reportable segments of Renta Group are presented in the table below:

REPORTABLE SEGMENTS 2020

EUR 1,000Income statements Finland Sweden Norway Poland Eliminations

Group Total

External sales 95,903 98,621 14,869 558 0 209,950Inter-segment sales 5,903 0 48 0 -5,952 0Segments sales 101,806 98,621 14,918 558 -5,952 209,950Depreciation and impairment on assets -31,510 -32,747 -6,294 -520 0 -71,070EBITA 9,284 1,832 -1,486 -967 4 8,667Amortisations of intangible assets resulting from acquisitions -1,113 -757 -312 0 0 -2,183Operating profit (EBIT) 6,590 1,004 -1,798 -967 0 4,828

Segment assets and liabilities Finland Sweden Norway PolandReportable

segments totalIntangible assets 55,031 53,359 4,189 39 112,618Tangible and other assets 106,934 138,989 35,859 5,366 287,148Segment assets* 161,965 192,347 40,048 5,406 399,766 Segment liabilities** 36,925 23,940 3,477 86 64,428 Capital employed 125,040 168,407 36,571 5,320 335,338

*Segment assets are calculated as total assets excluding cash ** Segment liabilities exclude interest-bearing liabilities

Other disclosures Finland Sweden Norway PolandReportable

segments totalGross capital expenditure 16,199 23,432 5,364 5,558 50,553Number of employees 31 December 280 410 51 21 762Average number of employees 285 396 52 17 750



REPORTABLE SEGMENTS 2019

EUR 1,000Income statements Finland Sweden Norway Poland Eliminations Group TotalExternal sales 88,308 81,531 14,241 0 0 184,079Inter-segment sales 295 1,120 0 0 -1,415 0Segments sales 88,603 82,651 14,241 0 -1,415 184,079Depreciation and impairment on assets -29,411 -25,960 -5,483 0 0 -60,855EBITA 6,536 6,039 -768 -49 0 11,759Amortisations of intangible assets resulting from acquisitions -1,103 -673 -340 0 0 -2,116Operating profit (EBIT) 4,387 5,302 -1,107 -49 0 8,533

Segment assets and liabilities Finland Sweden Norway PolandReportable

segments totalIntangible assets 54,907 48,270 4,785 1 107,963Tangible and other assets 122,365 127,952 37,797 28 288,142Segment assets* 177,272 176,223 42,583 29 396,105 Segment liabilities** 26,717 19,726 3,657 11 50,112 Capital employed 150,555 156,497 38,925 17 345,994

*Segment assets are calculated as total assets excluding cash ** Segment liabilities exclude interest-bearing liabilities

Other disclosures Finland Sweden Norway PolandReportable

segments totalGross capital expenditure 25,115 48,440 2,090 1 75,645Number of employees 31 December 271 360 52 2 685Average number of employees 263 322 47 2 634



Leases

LEASE RELATED EXPENSES

EUR 1,000 2020 2019Depreciation of right-of-use assets Equipment -12,645 -10,268Facilities -8,561 -6,771Land and waters -123 -132Other -1,582 -1,174 -22,910 -18,345 Other operating expenses Short-term lease expense -8,392 -6,084Expense for leases of low-value assets -74 -30 Finance income and expenses Interest expenses on lease liabilities -2,644 -1,804

LEASE LIABILITIES

EUR 1,000Maturity analysis of lease liabilities 2020 2019<1 year 24,829 21,4281-5 years 50,139 55,035> 5 years 9,107 8,494Contractual amount 84,075 84,957Carrying amount 77,365 78,499

EUR 1,000Lease liabilities by asset class 2020 2019Land and buildings 33,186 30,701Rental machinery 40,620 44,671Other 3,560 3,128Total 77,365 78,499

Renta Group recognised rental costs from short-term lease liabilities equalling EUR 8,392 (6,084) thousand and leases of low-value assets equalling EUR 74 (30) thousand during the financial year 2020. Renta Group did not have any significant committed but not yet commenced lease agreements as of the 31 Dec 2020.

Renta Group does not have significant subleasing arrangements in place as of year-end 2020.

EUR 1,000 2020 2019Depreciation of own tangible assets -48,160 -42,508

Depreciations of right of use assets -22,910 -18,347Amortisation of intangible assets -3,838 -3,226Total depreciation and amortisation -74,908 -64,081Impairment loss of tangible assets 0 0Impairment loss of intangible assets 0 0Depreciation, amortisation and impairment loss total -74,908 -64,081

Depreciation, amortisation and impairment losses



Net finance expenses

EUR 1,000 2020 2019Interest income and other financial income 103 138Net income on derivatives fair value change 0 111Net foreign exchange profit 818Finance income 921 249 Interest expenses on loan recognised at amortised cost -12,010 -12,506Interest expenses on leases -2,178 -1,804Interest expenses from other financial instruments -912 -546Other financial expenses -1,443 -1,497Net expense on derivatives fair value change -175 0Net foreign exchange loss 0 -251Finance expenses -16,718 -16,603 Net financial expenses -15,798 -16,354

Amounts recognised in other 2020comprehensive income items Before tax Tax effect Net of tax Change in translation differences 2,645 0 2,645Total 2,645 0 2,645

Income tax expense

EUR 1,000Amounts recognised in income statements 2020 2019Income taxes -952 -655Incomes taxes from previous years -3 172Change in deferred taxes 1,490 1,682Total 536 1,199

Amounts recognised in other 2019comprehensive income items Before tax Tax effect Net of tax Change in translation differences -1,106 0 -1,106Total -1,106 0 -1,106

Reconciliation of effective tax rates EUR 1,000 2020 2019Loss before taxes -10,969 -7,821Tax calculated with domestic corporate tax rate

2,194 1,564

Foreign subsidiaries divergent tax rate +/- 120 45Tax from the previous financial periods -1 172Change in tax rates 0 0Non-taxable income 0 345Non-deductible expenses -718 -718Tax losses for which no deferred income tax asset was recognised

-391 0

Total 536 1,199 Group's effective tax rate, % 4.9% 15.3%

In 2020 the Group’s Norwegian subsidiary, Renta AS, incurred a tax loss of EUR 250 thousand, making the total tax losses to EUR 320 thousand. In management’s view Renta will be able to offset these tax losses against future taxable profits. The cumulative tax losses do not have a set expiration date.



Impairment testing of goodwill and other intangible assets with indefinite useful livesGoodwill, and other intangible assets with indefinite useful lives, are tested for potential impairment whenever there is an indication that the asset in question may be impaired, or at least annually. During financial year 2020, Renta Group does not have other significant intangible assets with indefinite useful lives but goodwill.

Impairment testing of goodwill is carried out by alloca-ting goodwill to the lowest cash generating unit level (CGU) which generates cash flows independently from other cash generating units. Renta Group’s operating countries (Finland, Norway, Sweden and Poland) are defined as cash generating units for the purposes of impairment testing. Impairment of goodwill arising from an acquisition of a subsidiary is allocated to the segment of that subsidiary.

The recoverable amounts of the cash generating units (CGU) are determined based on estimating their value-in-use. Estimated future cash flows are based on the budget approved by the top management and the board of directors and other long-term financial plans such as Renta Group’s business plans. Cash flow forecasts cover the next four years. Cash flows beyond the forecast period are estimated by using a long-term growth rate that is based on a prudent estimate of long-term rate of infla-tion in each of the cash generating units. Management

judgement and experience of local business environment, and information available from external sources such as market research institutions, may also be used when determining the long-term growth rate that affects the terminal value.

The discount rates used in impairment testing are the weighted average pre-tax costs of capital (WACC) which reflect the cost of equity and debt as well as the market risks related to the cash generating unit. The country- specific WACC components are the risk-free interest rate, the market risk premium and the credit spread. The components of the discount rate that are common for all tested cash generating units are the comparable peer industry beta and Renta Group’s capital structure. Right-of-use assets have been included in the tested assets and discounted cash flows according to IFRS16.

Goodwill has been allocated to the Cash Generating Units as follows:

EUR 1,000 GoodwillFinland 22,777Sweden 65,956Norway 2,850Poland 1Total 91,584

Renta Group performed impairment testing for goodwill during the fourth quarter of 2020.

Key assumptions underlying the impairment test are WACC, EBIT-margin and terminal growth rate.

CGUPre-tax

WACC

Average EBIT

margin

Terminal growth

rateImpairment

cushionFinland 9.4% 18% 2% 162%Sweden 9.1% 12% 2% 78%Norway 8.5% 8% 2% 56%Poland 10.8% -17% 4% 3,692%

The outcome of the testing goodwill for impairment is evaluated by comparing the recoverable amount (R) with the carrying value (C) of the CGU assets as follows:

Ratio EstimateR < C Write-downR 0-20% > C Exceeds slightlyR 20-50% > C Exceeds clearlyR 50%- > C Exceeds significantly



As a result of the impairment tests performed, no impair-ment loss has been recognised in 2020. The outcome of the impairment tests performed during 2020 indicate that the recoverable amount exceeded the carrying amount for all CGUs substantially.

Renta has carried out a sensitivity analysis of the key assumptions as part of the impairment testing. The most

Sensitivity analysis of the assumptions Finland Sweden Norway PolandPre-tax WACC (Percent point increase) 13.7 4.2 2.5 1.0Average EBIT-margin (Percent point decrease) 11.8 8.5 6.4 1.0Terminal growth rate (Percent point decrease) 87.9 51.1 -38.8 2.3

sensitive variables are WACC, average EBIT margin and terminal sales growth rate. The management estimates that any reasonably possible change in WACC, average EBIT margin or terminal growth rate would not cause the recoverable amount to exceed the carrying value in any of the tested CGUs. The assumptions used in the sensitivity analysis is presented in the following table.



Interest-bearing liabilities

EUR 1,000 2020 2019Interest bearing liabilities Carrying amount Fair value Carrying amount Fair value Non-current interest-bearing liabilities Bank loans 159,703 159,703 159,520 159,520Lease liabilities 54,860 54,860 59,228 59,228Other 6,982 6,982 2,211 2,211Total 221,546 221,546 220,959 220,959

Current interest-bearing liabilities Bank loans 8,996 8,996 9,024 9,024Lease liabilities 22,505 22,505 19,272 19,272Other 2,755 2,755 1,448 1,448Total 34,256 34,256 29,744 29,744

Total interest-bearing liabilities 255,802 255,802 250,703 250,703

Other interest-bearing liabilities consists mainly of liabilities originating from hire purchase agreements.



EUR 1,000Analysis of trade receivables by age December 31, 2020

Expected loss rate, %

Gross carrying amount

Loss allowance Total

Undue trade receivables 0.05% 22,592 -12 22,580Trade receivables 1-14 days overdue 0.09% 3,833 -3 3,830Trade receivables 15-30 days overdue 0.15% 422 -1 422Trade receivables 31-60 days overdue 0.49% 354 -2 352Trade receivables 61-90 days overdue 32.97% 152 -50 102Trade receivables 91-180 days overdue 64.92% 294 -191 103Trade receivables more than 180 days overdue 99.99% 259 -259 0Total 27,906 -517 27,389

Renta Group manages customer credit risk rigorous and frequent invoicing, advance payments, payment guaran-tees and careful assessment of the credit worthiness of customers. The majority of Renta Group’s business operations is based on established, long-term and reliable customer relationships and generally adopted contractual terms. The payment terms of the invoices are between 14 and 60 days.

EUR 1,000Analysis of trade receivables by age December 31, 2019

Expected loss rate, %

Gross carrying amount

Loss allowance Total

Undue trade receivables 0.16% 20,079 -32 20,046Trade receivables 1-14 days overdue 0.21% 3,418 -7 3,411Trade receivables 15-30 days overdue 0.31% 280 -1 279Trade receivables 31-60 days overdue 0.99% 467 -5 462Trade receivables 61-90 days overdue 51.97% 221 -115 106Trade receivables 91-180 days overdue 87.57% 503 -441 63Trade receivables more than 180 days overdue 99.99% 396 -396 0Total 25,363 -996 24,367

Trade and other receivables

Renta Group’s customer credit risk arises from outstand - ing trade receivable balances. Renta Group’s customer base is different in each of its operating countries. The nature of commercial contracts is relatively similar in Finland, Norway and Sweden, but differs to an extent from the nature of business conventions prevailing in Poland. Renta Group’s local business operations are responsible for day-to-day assessment of customer credit worthi-ness, carrying out credit risk management activities and for ongoing monitoring of customer-specific credit risk. Credit worthiness assessment of all new customers is performed and when necessary, guarantees are required. Renta Group does not have any significant concentrations of credit risk as the customer base is widely spread and geographically spread into the countries in which the Group operates. The exposure to credit risk, and customer payment behaviour, is monitored on an ongoing basis.

EUR 1,000 Trade receivables by currencies 2020 2019EUR 10,244 10,822SEK 14,678 11,330NOK 2,259 2,215PLN 208 0Total 27,389 24,367



Renta Group estimates the risk for credit loss on its outstanding receivables on a continuous basis. The management has determined a credit loss allowance to be applied to outstanding receivables balances. The allowance depends on the number of days a receivables balance is past the due date and is based on the manage-ment’s analysis on customer credit worthiness, changes in payment behaviour, and other factors that may affect the risk for credit loss that can be observed in the business operating environment.

The COVID-19 pandemic did not have any significant impact on the trade receivables. During 2020 Renta Group focused on developing processes to manage trade recei-vables and was able to improve the aging structure of the trade receivables compared to 2019.

EUR 1,000 2020 2019Trade payables 10,747 9,671Advances received 739 251Accrued expenses and deferred income

9,883 8,187

Other current liabilities 5,679 4,262Total 27,049 22,371

EUR 1,000 2020 2019Accrued interest from capital loans

14,168 9,996

Shareholder loans 5,592 5,432Other non-current liabilities 704 146Total 20,464 15,574

Other non-current liabilities

Other current liabilities

Group companies

Group companiesThe Group consists of Renta Group Oy and the following subsidiaries on Dec 31, 2020. EUR 1,000 % of sharesSubsidiaries Domicile Parent company GroupRenta Yhtiöt Oy Vantaa Finland 100%Renta Telineet Oy Tuusula Finland 100%Renta Oy Vantaa Finland 100%Renta AS Blomsdalen Norway 100%Renta Norway AS Blomsdalen Norway 100%Renta Poland Sp z. o.o. Katowice Poland 100%Renta Sp z. o.o. Katowice Poland 100%Renta AB Landskrona Sweden 100%Renta Sweden AB Varberg Sweden 100%



Shares and shareholders

2020 2019 No EUR 1,000 No EUR 1,000Shares 14,553,457 3 14,314,574 3

Distribution of shareholding by size range 31 Dec 2020

Number of shareholders

% of shareholders

Number of shares

% of share capital

1-1,000 18 7.73% 12,494 0.09%1,001-10,000 114 48.93% 492,219 3.38%10,001-100,000 83 35.62% 2,508,727 17.24%100,001-500,000 16 6.87% 3,647,167 25.06%500,001- 2 0.86% 7,892,850 54.23%Total 233 100.00% 14,553,457 100.00%

Distribution of shareholding by size range 31 Dec 2020

Number of shareholders

% of shareholders

Number of shares

% of share capital

Corporations 9 3.86% 8,561,444 58.83%Households 110 47.21% 3,111,157 21.38%Foreign shareholders 114 48.93% 2,880,856 19.79%Total 233 100.00% 14,553,457 100.00%



Calculation of key figures and ratios

Average number of personnel =

The average number of employees at the end of each calendar month during the accounting period, adjusted with the number of part-time employees

EBITA =Operating profit (EBIT) + amortisation and impairment on intangible assets (purchase price allocations) arising from acquisitions

Gross Capital Employed = Total assets - total non-interest bearing liabilities

Earnings per share (EPS) =

Profit for the year attributable to owners of the parent company

x 100Adjusted average number of shares during the period



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YEARBOOK 2020 - Renta

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