RESPONSIBLE RENTAL

3-YEAR REPORT 2015-2017

250,000 CUSTOMERS

LOXAM RESPONSIBLE RENTAL 2018 /3

IN our company, commitment to CSR is an integral part of our business and our vocation. Equipment rental is in itself an act of sustainable development, as it replaces product ownership by product use.

Loxam’s development has always been founded on the necessity of fulfilling the requirements of our stakeholders and in particular those of our customers. This commitment brought us firstly to adopt the standard ISO 9001 which we have now held for nearly 20 years, and subsequently the standard ISO 14001, an eco-responsible approach aiming to substantially reduce the impact of our activities on the environment. This double certification on a European scale is the result of a policy combining excellence, quality and environmental protection, a policy that the Group has been pursuing for many years. Since 2015, our CSR approach has also been evaluated by the certifying body SGS, and was judged to reach level 3 on the basis of the ISO 26000 standard.

Our commitment for the period 2015-2017 took the form of three main initiatives:• Supporting the UN Global Compact and making progress every year in the application

of its ten universal principles, through our continued membership of the Global Compact;• Applying our Code of Ethics which deals with the ethical issues faced by the Group’s

employees;• Meet new CSR performance targets within the framework of ISO 26000 by

engaging with all stakeholders.

In continuation of this, and a perspective of continuous improvement, we today pledge to take our CSR commitment a step further by deploying a new three-year roadmap for 2018-2020, co-designed with our stakeholders.

It is therefore with clear conviction that I confirm the continued support of the LOXAM Group for the year 2017 and beyond, for the initiative launched by Kofi Annan in 2000, Global Compact, which today brings together thousands of participants from more than 100 countries and to which LOXAM has been a signatory since 2015.

(Figures at 31/12/2017)

LOXAM IN 2017...

NO.1

NO.1 EQUIPMENT RENTAL FIRM IN EUROPE

300,000 ITEMS OF EQUIPMENT

€1.4 BILLION TURNOVER

22 COUNTRIES AROUND THE WORLD

750 BRANCHES

LOXAM GROUP STATEMENT:CONTINUED SUPPORT OF AND COMMITMENT

TO THE 10 PRINCIPLES OF THE GLOBAL COMPACT

Gérard Déprez, President

7,900 EMPLOYEES

4 LOXAM RESPONSIBLE RENTAL 2018 /5

2017 will remain a watershed year for our Group which celebrated its 50th anniversary and continued to grow and expand internationally, offering us an excellent outlook and attractive challenges for the years that lie ahead.

This symbolic moment was celebrated with our entire ecosystem; that is to say, everyone who contributed to this distinguished history: we thus built 2017 around special occasions that we chose to share with our employees, clients, suppliers and all of our stakeholders. This enabled us to observe the extent to which the relations we have built up, over many years for some of them, are a fundamental part of LOXAM’s success.

Following on from this momentum, we have decided to launch our three-year CSR plan for the 2018-2020 period. This plan will be designed, or rather jointly designed, during the first months of 2018. Indeed, we are going to draw up this plan by working together with our internal and external stakeholders from a materiality study to which more than 10,000 of them are going to respond. In this respect, workshops will be run in coaching/collaborative/co-design mode to help establish priorities for action, give structure to strategy and define the 2018-2020 roadmap.

But before that, our 2017 report gives us a chance to describe what we achieved last year, which rounded off our 2015-2017 three-year plan. This 2015/2017 plan truly marked a turning point in our approach to CSR, giving us an even more proactive and structured approach notably through the award of level 3 of the ISO 26000 standard and our membership of the Global Compact since October 2015. This report is divided into four chapters - Satisfaction, Safety, Environment and Governance - and ends with a presentation of key indicators displaying each objective that we aimed to reach at the end of 2017.

INTRODUCTION

Nicolas Jonville, HR & CSR Director.

SATISFACTION 09CUSTOMERS: OUR PRIORITY 10

TEAMS OF PROFESSIONALS, EXPERTS IN THEIR FIELD 12

SAFETY 15EQUIPMENT SAFETY, A MAJOR FOCUS 16

INFORMING AND EDUCATING ALL OUR STAKEHOLDERS 18

ENVIRONMENT 21ENVIRONMENTAL MANAGEMENT AT THE HEART OF OUR PROCESSES 22

OPTIMISED RECYCLING OF OUR EQUIPMENT 24

GOVERNANCE 27ETHICAL BUSINESS CONDUCT 28

DIALOGUE WITH OUR STAKEHOLDERS 29

THREE-YEAR PLAN RESULTS FOR 2015-2017 30

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CONTENTS

8 LOXAM RESPONSIBLE RENTAL 2018 /9

The Group has always been keen to foster a relationship of trust and proximity with its customers. We are first and foremost a service company. Offering the best possible service is more than just a goal: it is a vocation. Our ISO 9001 certification, renewed in December 2017 for all of our 750 branches spread over 22 countries, is tangible proof of this service quality. We offer unique network density to stay ever closer to our customers and, so as to cater to their needs in the best possible way, the Group has a constantly-evolving rental fleet of more than 250,000 items of equipment. And as we are acutely aware that the quality of our service is intrinsically related to the performance of our 7,500 members of staff, we place particular emphasis on their well-being and career development.

For 50 years, our corporate culture has placed the customer at the centre of our priorities. We keep our promises, whether in terms of prices, estimates, response times or delivery. We ensure on a daily basis that our equipment fleet is beyond reproach in terms of its reliability and meets all requirements. To do so, we exchange with the users of our equipment to work on the user-friendliness of our machines, and each time equipment is rented out we make sure that the client is well-informed and that they will be able to work in total safety. We are also keen to display transparency in our relationship with our clients, by providing them with an itemised invoice.

SATISFACTION

Customer Service of the Year

2018“Equipment rental”

category

ACTIONS

LOXAM RESPONSIBLE RENTAL 2018 /1110/ SATISFACTION

RENEWAL OF ISO 9001for 3 years across all branches

VCA CERTIFICATION in the Netherlands

MASE CERTIFICATION for Loxam Power,

Access and Rental branches working on major industrial facilities

Voted Customer Service

of the Year 2018 (ESCDA)

NPS*: 44(*Net Promoter Score: Customer satisfaction

indicator) - Calculation: % of Promoters - % of Detractors

RESULTS

i- LISTEN -

Since 2016, the Group has implemented a quarterly satisfaction survey conducted among 30,000 customers. According to the most recent one (last quarter of 2017), 95% say that they are satisfied with their equipment rental partner. They gave an overall mark of 4.4/5 to Loxam and its services. They declare their satisfaction in areas which they consider to be essential as part of their job, such as the quality of in-branch contact or phone contact, equipment reliability, compliance with delivery times, safety prevention, and support and responsiveness of staff. The Group is warmly recommended by its customers, with a net promoter score (NPS) of 44. All of these results are recognition of the continuous effort and investment by the company and its teams to provide high service quality.

- ADAPT -

Loxam constantly adapts its offering with new ranges of equipment fitted with the latest technology (low-energy, dual fuel, etc.) to protect the environment, and incorporating new solutions for better user safety. The range of equipment on offer is continuously evolving with, for example, equipment running on electric or hybrid power, particulate filters, battery-powered tools, LED light systems, soundproofed gensets, anti-vibration pneumatic drills, etc. The Group’s aim is to offer a response for every type of worksite.

In addition to offering the guarantee of permanent availability of materials made possible through the synergies present in its network, Loxam is also modifying its branch concept. Today a full range of small equipment items dedicated to customers dealing in finishing works offers access to a wide selection of products (heating, air-conditioning, drills, floor sanders, floor edgers, etc.).

- INFORM -

Whether meeting the requirements of each worksite or creating new service entities for major projects such as that of Loxam Grand Paris (an entity offering local and tailored support to this major programme), the Group does everything it can to be a true partner.

In 2017, Loxam also launched the new signature “Much More Than Rental” to emphasise the fact that, in France just as in the 22 other countries in which the equipment rental firm is established, customers can rely on Loxam to go the extra mile. This brand promise is a reflection of the quality of its teams’ commitment, in particular through additional services and safety.

FOCUS

Customer Service of the Year 2018 Loxam was voted “Customer Service of the Year 2018” (Élu Service Client de l’Année) in the “equipment rental” category following a survey in the first half of 2017 in which dozens of mystery shopper tests were carried out through a number of different customer contact channels: by phone, on the website, on the digital app or on social media. Several thousand criteria were thus measured in accordance with the European standard EN NF 15838. With tailored offers and an individual customer approach, whether a major corporation, a small business or a tradesman, nearly 8 in 10 customers say that Loxam is their favourite rental company.

Whether renting equipment in France or abroad, a Loxam customer benefits from the same high quality of service and equipment: this is our pledge.

Consequently, to raise our standards even further, we take into account all of the needs of our customer, from the design of their projects to their ultimate completion.

CUSTOMERS: OUR PRIORITY

“ While the Group has grown significantly in recent years, we should not forget that without our customers we wouldn’t be here today. This is why we decided to enlist all our network in rising to the challenge of the election of Customer Service of the Year 2018 to get even closer to our customers. Mission accomplished! ”

Jean-Pierre LOTT, Commercial Director

ACTIONS

LOXAM RESPONSIBLE RENTAL 2018 /1312/ SATISFACTION

RESULTS

1stLoxam’s position in the “best employers”

rankings (February 2017) in the “Wholesale” category

- independent survey conducted by the business journal “Capital”

3.4%Block release training contracts(doubling in the space of 3 years)

More than

48,000 hours of training delivered in 2017

- WELCOME -

Whereas our initial objective was to pass the bar of 2% of block release students in our total workforce at the end of 2017, a combination of the positive results from block release trainees in 2015-2016 and communication relating to our approach produced a snowball effect, and a growing number of managers asked to take on block release trainees in 2017. As a consequence, the number of block release trainees has almost tripled in the space of three years and we have ended the year with block release trainees accounting for 3.4% of our workforce - a total of 140 block release trainees.

To complete our initiative, we created the “block release” days. Each trainee taken on in 2017 was invited with their tutor to the Bagneux training centre. A specific programme was designed for them based on theoretical and practical workshops, discussions with peers, and exchange with management. These four days, attended by more than 150 trainees and tutors, were highly appreciated by all participants.

- TRAIN -

To give meaning to our sales approach, training courses on “customer relation optimisation” were redesigned and modernised in their form.

A blended e-learning system (mixed between distance learning and classroom learning) was organised throughout the Group. All regional and subsidiary sales managers followed a course to become a trainer in order to subsequently train their own teams locally.

In three months, more than 1,000 employees were able to benefit from this training course.

- ENGAGE -

2017 marked the 20th anniversary of ISO 9001 certification at Loxam: confirmation of its long-standing quality policy. It is also the commitment that all subsidiaries meet the same Group standards and that the client benefits from the same services wherever they are. All Loxam branches located near to sensitive industrial facilities carry MASE certification. Loxam also holds VCA certification in the Netherlands. These certifications are a guarantee of operational excellence.

In addition, over the years, employee pride and loyalty has developed within the Group, resulting in a very low churn rate compared to its business sector. In 2017, Loxam launched its new website dedicated to the recruitment of new employees: www.loxamtalent.com. In its 50th anniversary year, the Group recruited 700 people, including more than 550 on permanent work contracts.

The values we share in our Group are high standards, the love of our job and the will to improve and innovate. This corporate culture is a source of cohesion

and commitment from all of our employees and is founded on cordial relations, enhancing a sense of belonging and increasing team motivation.

Loxam has always been keen to develop knowledge and training internally. This care for individuals is essential for the Group, since the know-how, the ability to move

forward and the professional engagement of its 7,500 staff members are the driver for the Group’s performance a token of customer satisfaction.

TEAMS OF PROFESSIONALS, EXPERTS IN THEIR FIELD

“ Since 2007, working with Loxam, we have helped 54 young people to earn their technical further education certificate in Public Works Machinery Maintenance with block release to branches located in the west of France. This win/win connection that we have succeeded in implementing together is crucial. The attentiveness and constructive dialogue help us to stay close to the requirements of one another. Getting young people into employment is our priority, and Loxam’s territorial coverage helps us considerably. ”

Catherine JOYEUX, Deputy Head of Lycée Isaac de l’Étoile technical college, Poitiers (France)

FOCUS

A Loxam class to train the technicians of tomorrow.Employing a young person on a block release basis (college/company), means training them up in the firm’s work methods. This is also an opportunity for Loxam to remedy a serious lack of training in a field of expertise. For the past 10 years, our regional technical managers have maintained close relations with the Issac de l’Etoile training college, with the aim of taking on Loxam’s future mechanics. This approach has proven effective over time. Today, 13% of the current technical staff in the Atlantic region is from block release. In 2017, a class of eight block release mechanics students, including two girls, joined the workshops of Loxam branches in this region.

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Safeguarding the physical integrity of users and employees is a priority for Loxam and this translates into action every day.In addition to promoting awareness and training of employees, we pay special attention to safety issues and adopt a proactive attitude to anticipate any risks.

This approach is illustrated by appropriate communication using safety branding (comprising 240 stickers) and providing technical documents (298 fact sheets) as well as explaining to customers how to use machines. Through these permanent commitments, we regularly record lower accident rates across our network.

Workplace accident gravity

- 30%between 2015 and 2017

SAFETY

LOXAM RESPONSIBLE RENTAL 2018 /17 16/ SAFETY

To minimise risks, we want to guarantee the maximal quality of the equipment entrusted to the customer. This is why the Group only works with well-known manufacturers,

keeps its ear to the ground to improve equipment operating conditions, and calls on the best suppliers who now additionally comply with new CSR selection criteria.

Our participation in safety days confirms our desire to work with industry majors. Being a responsible firm also means working with responsible partners.

EQUIPMENT SAFETY, A MAJOR ISSUE

RESULTS

- EQUIP -

We work to continuously raise the bar in terms of safety and inspection standards. Through long-standing cooperation with highly-renowned manufacturers, we constantly adapt our machines to enhance their safety and user-friendliness.

We have developed the use of backup cameras and aggravating movements arresters, fitted our machines with seat safety mechanisms, installed cabin access step lighting on a large number of HGVs, etc.

As a rental company committed to these principles, the Group today hires out equipment offering a host of benefits in terms of energy saving, comfortable and safe working conditions. This includes extra sound-insulated power generators, battery operated tools, atomisers for demolition jobs, pneumatic drills with anti-vibration mechanisms, etc.

- INSPECT -

Regular preventive inspections help to prevent breakdowns which hamper user activity. In our processes, any observation made on an inspection report prevents the machine from being rented until the observation has been lifted. A 10-point technical inspection is conducted before and after each period of hire. This has divided the breakdown rate by three in the space of a few years.

Our Rentalman ERP solution allows us to go a step further in monitoring our routine inspection. This information system is configured to help us plan all the necessary checks through an alert, even when the machine is out with a customer. In addition to this, telematics tools are being developed within the Group to optimise the monitoring of our fleet’s maintenance and reinforces our wish for each machine rented out to be in the best possible operating condition.

- DEVELOP -

We constantly set our sights higher, and take full account of feedback from out in the field, market changes and regulatory developments. Our specialist committees regularly define and review standards and procedures to enable us to operate equipment and machinery in total safety (preparation, return, maintenance, repair, call-out, etc.).

In our new branch concept, safety has been enhanced with a newly redesigned courtyard plan comprising a light vehicle parking zone, a marked-out footpath, wall protection using rails and posts, etc.

Workplace accident gravity:

-30%between 2015 and 2017

75,000 general periodic checks in 2017

37%of the network’s workshops

comply with the new concept

ACTIONS

“ Our customers value the ability of the BlueSky team to evaluate and solve the Working at Height challenges they encounter in a safe and professional manner. The wide range of BlueSky attachments and their deployment within the Loxam PAD fleet are now a standard requirement for many companies. ”

Paul MARKS , Business Unit Director - BlueSky

FOCUS

Lavendon’s BlueSky division.This year, thanks to the acquisition of Lavendon, one of the world leaders in powered access, the Group expanded it expertise with a department dedicated to research into innovative safety solutions. BlueSky Solutions, part of Nationwide Platforms, designs, develops and manufactures systems to improve safety, efficiency and productivity of powered access equipment. The department has created a number of different innovations, such as SkySiren® to reduce the risk of injury due to crushing at height, and SkyScreen™ which reduces the risk from dropped objects.

We have continued to pursue our actions in this direction.

Preventing accidents by telling our employees and customers what safety actions to take is a Group priority.

This is why, to optimise the use of our equipment in total safety, we do our utmost to help them understand how our machines work.

Information and education are pillars of our safety actions. They apply to both employees and customers,

in the aim of consistently and efficiently supporting them.

INFORMING AND EDUCATING ALL OF OUR STAKEHOLDERS

ZOOM

“Risk prevention management” trainingTo improve risk prevention and reinforce the safety culture at all managerial levels at Loxam, it appeared essential to train them in the importance, in human and economic terms, that this represents. In association with an official body, a tailored programme was created and training days organised to re-sensitise employees to the right techniques and attitudes to adopt to prevent all risks. From the Group Senior-Management Team to branch managers and regional directors, all job areas were concerned by this training course. More than 80 “Risk Prevention Management” sessions were held in the first quarter of 2017.

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RESULTS

- INFORM -

The introduction of quarter-hour safety briefings across the whole network in 2017 has fostered exchange and progress.

This meeting is held once a month in every branch. The themes selected and discussed depend on the Group’s current issues and those of teams in their everyday activity. It provides an opportunity to remind people of safety instructions and best practices, and discuss feedback. Following these meetings, preventative actions are implemented, reinforced by a safety notice board sent to branches across the network.

Furthermore, technology, and principally Internet of Things, is a major ally for accident prevention. At Loxam, a significant proportion of equipment is fitted with terminals to locate machines, automate operating hours reports, facilitate work by technicians on major projects, and receive accurate information on safety inspections deadlines.

- TEACH -

Training customers so as to offer better support is an important matter at Loxam.

In addition to providing professional training bodies with the logistical means and equipment necessary to conduct their training sessions (Loxam Formation), the Group also offers programmes tailored to customers of partner firms to help them gain better knowledge of equipment in total safety.

These training courses take place at Loxam’s training centre or as part of the LoxamTour, an original concept of a caravan which tours around France and certain European countries. In 2017, 400 customer trainees were educated on 65 different sessions.

- ENABLE -

Communication lies at the heart of Loxam’s safety policy.

The 2017 rental catalogue includes tips, advice and focuses on regulations and recommended personal protective equipment (PPE). Videos on how to operate equipment are available on the Group’s YouTube channel; a quarterly newsletter including a systematic reminder of safety instructions is mailed to 170,000 clients; a brochure dedicated to powered access bringing together all the technical information necessary for the use of booms and telehandlers has been produced, etc.

All of these tools are proof of the Group’s commitment to accident prevention.

9,000 hours of training

dedicated to “Risk Prevention Management”

100%of the network’s employees

followed training in “safe equipment operation”

850training sessions

in 110 Loxam branches held under the Loxam Training label

ACTIONS

“ Viewing occupational risk prevention in a firm as an act of management is one of the key success factors for health and safety training projects. It is in this frame of mind that this campaign was codesigned with LOXAM. ”

Guillaume MOULT, Forget Institut

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ENVIRONMENT

We have always been keen to take a global perspective of our activities to minimise their impact on the environment, notably by developing innovative recycling processes. The Group’s initiatives in the field are many and varied, running from waste sorting to the recovery of machines at the end of their useful lives.

The circular economy contributes to performance and is central to our processes. We work in this vein on a daily basis to deliver its benefits to all stakeholders. The environmental management solutions we have implemented help us to steadily progress towards a responsible form of development. Objectives applied across the whole network are set every three years by Group Management. This helped all of the Group’s branches to obtain the renewal of its ISO 14001 certification in 2017.ISO 14001 renewed

for 3 years on

100% of the network

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This is a long-standing commitment for us: integrating environmental best practices into all of our activities and across all of our branches is in our DNA.

Each subsidiary and division makes a commitment to closely monitoring all of the areas of its activity which have an impact on the environment,

and enlist the engagement of all of its team members. We believe that controlling waste production can save money and protect the environment.

ENVIRONMENTAL MANAGEMENT AT THE HEART

OF OUR PROCESSES

ACTIONS

- ANTICIPATE -

The best way of preventing risks is by anticipating them. To manage pollution risks stemming from fuel transfer, specific kits have been distributed to all branches.

The processing of waste from work sites is also at the centre of our actions. Each month our branches collect 2 tonnes of sludge, hydrocarbons and equipment washing waste water. These are then reprocessed with the help of a washing area designed to this effect.

The Group also continued to install organic washing fountains in workshops, replacing solvent or detergent-based fountains.

- BUILD AWARENESS -

Our priority is to reduce water and fossil fuel consumption and our production of waste. In this aim, the induction course for new employees includes a module explaining the five areas of our environmental action plan: the washing area, management of waste and hydrocarbons, emergency situations, how to deal with them, and battery charging zones.

There are also advice sheets (waste, water, emergency, hydrocarbon storage) and equipment use guidelines. Waste is sorted in branches and regularly collected by an approved dealer. Loxam ensures that it can track a product from its removal to its recycling.

- INNOVATE -

Limiting our footprint is also about innovating in our processes.

The Group has started dematerialising its processes.

Refraining from printing is good progress for all.

By offering our clients electronic invoices, we have significantly reduced our paper consumption and reasserted our commitment as a responsible firm, whilst responding to our customers’ demands.

Through the deployment of our CRM, we also correspond with our customers by e-mail.

“ Adopting the 14001 standard in its 2015 version allowed us to review our entire environmental analysis process by considering the entire life-cycle of our equipment rental activity. Staying close to the needs and expectations of our stakeholders, we redefined some of our environmental principles such as paper, water, airborne emissions, energy consumption, waste water discharge, waste and emergency situation management, in order to reduce their impact in the coming years. ”

Diane LEFRANC, HSE Manager, LOXAM

RESULTS

100% of branches

follow an annual action plan

90% of the 500 tonnes of used oil

generated in 2017 is recovered through partners from the sector such as Sévia

Dematerialisation of invoices and pay slips

FOCUS

Purchasing a fleet of electric utility vehicles. This year, electrical call-out vehicles made their entrance in the fleets of branches in Paris. These vehicles do not emit any exhaust gases when they run and considerably reduce noise emissions, thereby causing less impact on the environment. Loxam employees who are likely to use them have followed an eco-driving course which, in addition to offering the undisputed advantages of optimising energy recovery cycles and reducing maintenance costs (tyres, brakes, etc.), helps to reduce the risk of accidents by 15 to 20%. Initially, these vehicles will only travel around Paris, but the concept will subsequently be developed in other major cities.

We have continued to pursue our actions in this direction.

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We optimise the recycling of our equipment through rehabilitation and recovery. Ever since it was established in 1995, our Equipment recycling plant in Saint Paterne

in the west of France has been at the cutting edge in the CSR field. A pioneer, holding ISO 9001 and ISO 14001 certification,

it is living proof of our long-standing commitment to the area and reinforces our desire to go even further in our environmental commitment.

Spanning more than a hectare, the site manages the entire life cycle of our machines, from new equipment acquisition, preparation and delivery to branches, to the inspection and servicing of machines, the recovery of spare parts

and the export of certain machines in the fleet.

OPTIMISED RECYCLING OF OUR EQUIPMENT

ACTIONS

- RECYCLE -

The Loxam equipment recycling plant, based in Saint Paterne in the west of France, is proof of the Group’s long-standing commitment to recycling, and has reinforced its desire to go even further in environmental performance, safety and care.

Spanning more than a hectare, this facility manages the entire life-cycle of the Group’s machines, from their purchasing (preparation, brand labelling, etc.) to their recycling, strictly following safety and environmental regulations.

These processes have proven to be effective: in 2017, 90% of the components of a compact excavator are recycled.

- REUSE -

In continuation of its CSR commitment, Loxam is pursuing its actions to protect the environment by focusing on its water consumption. For a multi-facility company with a global footprint, protecting this resource is an important issue. Our teams thus studied ways of reducing water consumption across the Group. The idea that emerged was to invent a system to recover and reuse rainwater, particularly in our washing areas to clean our machines and for our branches’ toilets.

Underground concrete tanks were selected for this solution. Their quantity and number were studied so that they could fully cater to the needs of the two above-mentioned purposes. For example, five tanks of 10m³ each were installed this year at the Rouen branch. Their capacity will supply water to the three Loxam branches (Loxam Rental, Access and Tec).

- TRANSFORM -

Prioritising the reuse of materials from our activities furthers the Group’s aim to prefer to replace parts rather than replace machines.

This helps to optimise waste management. For example, today the aluminium from parts and small end-of-life equipment items is recovered and sold to be melted down and reused elsewhere. Meanwhile, recovering these parts helps us to enhance our internal stock of spare parts and meet the growing needs of branches (+30% in 2017).

RESULTS

742 t of recoverable waste,

589 t of non-hazardous waste,

25 t of hazardous waste managed in 2017

+30% of parts were reinjected into the circuit in 2017

x4 in 3 yearsModular building

reconditioning

“ Our common commitment to CSR contributed to the genuine partnership we have formed with Loxam. Today we renovate damaged Loxam modular construction from A-Z to give them a new lease of life. Our motto is ‘Nothing goes to waste: everything can be kept or recycled! ”

Nicolas MESNAGER, Co-director of Transports Mesnager

FOCUS

Efficient recycling of modular construction. It had been observed that too many modular building were “dormant” in the Loxam fleet because they were in too poor a condition to be rented out. To solve this, a solution was designed to refurbish these constructions. The process now runs perfectly smoothly. The Loxam recycling centre sets priorities for our partner (Société Mesnager). According to the urgency of the network’s demands, a monthly schedule is established then issued. A damaged constructions is picked up, then stripped down to its bare structure. With only very few differences or slight imperfections, the renovated constructions is almost identical to the new one and can then be rented out once again.

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GOVERNANCE

Staying close to our employees, clients, suppliers and partners to understand their expectations and thus respond to them better has always been a priority at Loxam. This long-standing commitment is backed up by a stringent ethics policy which is the foundation for our governance principles. Towards our customers and suppliers, priority has always been given to rules of good business conduct observed by all the Group’s employees.

In addition to prohibiting all temptations of active or passive corruption and fighting against fraudulent behaviour, we strive to remain within the framework of healthy and fair competition. It is imperative for our employees to work in compliance with fundamental rights. Delivering on our objectives requires the development of dialogue with our stakeholders.A materiality survey* was conducted in this perspective among 5,000 stakeholders, both external (customers, suppliers, government, residents) and internal (employees, shareholders, staff representatives, etc.). Its findings enabled us to gain better insight into the expectations of each of them. This will be reconducted in 2018.

* Methodological approach which helps to identify and prioritise the CSR issues of a company according to the opinion of stakeholders as to its organisation.

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In the area of business ethics, Loxam has always made a point of conducting its business in strict compliance with the law and competition. The Group acts in total transparency. In this regard, a code of ethics

sponsored by senior management was introduced in 2015. This code gives details of the key ethical principles to follow in the company around five main themes:

corporate responsibility (in particular, our commitment to abide by the ten principles of the global compact), respect and protection of people (including human rights), ethical business relationships,

the protection and compliant use of Group assets, and the communication, control and monitoring of the application of the code (including the implementation of a whistleblowing procedure).

Suppliers are regularly assessed, branches are audited, the equipment fleet checked by external bodies, and an ethics advisor ensures that people understand the rules of the Code

and answers any questions arising as to their application.

Improving our practices to continuously improve how we fulfil our stakeholders’ expectations is an objective which we never lose sight of.

ETHICAL BUSINESS CONDUCT

DIALOGUE WITH OUR STAKEHOLDERS

ACTIONS

+25% branches

audited in 2017

+5% quality audits

performed in 2017

RESULTS

- ESTABLISH CLEAR RULES -

A code of ethics sets out everyone’s objectives, rights and duties within the Group and defines our fundamental values and principles.

This document was adapted to a pocket format this year. It was issued to all employees during information meetings and it is now given to each new employee with their work contract.

Our code of ethics should not be a document which is set in stone, and must be updated each time that new regulations or legal clarifications so require. Consequently, we made changes to it in 2017 to take whistleblower protection into consideration and reinforce provisions relating to outlawing sexist behaviour. We also aligned our code with the “Sapin 2” Act.

- SELECT OUR PARTNERS -

We regularly assess our suppliers to guarantee the quality of their services and their moral standards.

Today we include an increasing number of CSR criteria in our specifications in order to ensure that our partners’ actions are consistent with ours, but also to fulfil the many CSR criteria contained in the bids to which Loxam responds.

“ The introduction of ethical case studies in branches helps to raise employee awareness to ethical issues and shows the importance given by Loxam to the subject. These case studies also remind people that a confidential internal whistle-blowing system exists which is open to all Group employees. ”

Cyrille DEMIGNEUX, Legal Counsel and Ethics Advisor, LOXAM

“ In order to deliver on its CSR policy, ENGIE looks for partners meeting the following criteria: ethics, safety, advice, and care for the environment. Loxam knows how to meet these expectations (fleet of recent equipment which protects our users, compliance with ethical behaviour in our relationship, waste management, etc.). We rely on Loxam to pursue our partnership and further improve our performance. ”

Erwan BOENNEC, Group Category Manager ENGIE

ACTIONS

- WORK HAND IN HAND -

Working in close cooperation with all of the actors in our ecosystem to generate increasing value contributes to Loxam’s commitment to society.

Loxam is a member of several working and study committees at the ERA (European Rental Association), and contributes to changes practices leading to the publication of recommendations on lifting points which certain manufacturers have already incorporated into the design of their equipment (Technical Committee), to the creation of a web tool - the TCO calculator - which allows customers of rental companies to calculate the total costs of respectively purchasing and renting a machine (Promotion Committee), etc.

- CHANGE OUR PRACTICES -

In 2017, Loxam mapped out all the risks which might affect the business activity, organisation, projects, tangible and intangible assets, etc. of the company.

By listing these risks, the document helped the firm to mitigate them. An action plan was drawn up to cover specific residual risks following choices made by the Group’s general management. It is deployed over 2017/2018.

- AUDIT -

Each of our branches is regularly audited to ensure compliance with Loxam’s processes: existence of a contract for each rental period, quality of invoicing, etc.

This year, CSR questions were added to the checklist, as were HSE criteria. This is a way of providing internal oversight on the action plans introduced the previous year or ensuring that specific safety and environmental instructions are acted upon.

THREE-YEAR PLAN RESULTS FOR 2015-2017

In continuation of these actions and in a perspective of continuous improvement, Loxam embarked on a new stage in its CSR approach in 2015 which, as a reminder, is based on:

Supporting the UN Global Compact and making progress every year in the application of its ten universal principles;

Applying our Code of Ethics which deals with the ethical issues faced by the Group’s employees;

Developing CSR governance and performance targets within the framework of ISO 26000 by engaging with all stakeholders.

LOXAM RESPONSIBLE RENTAL 2018 /31

3 main chapters:

To co-design this approach, 20 issues were identified following interviews conducted with its stakeholders and approved

by the Group’s Senior Management Team. These 20 issues cover the seven core subjects

of the ISO 26000 standard and the four themes of the Global Compact.

20 ISSUES LOXAM 2015-2017

GOVERNANCE1 Responsible Communication

2 Engagement with Stakeholders

1

FAIR OPERATING PRACTICES12 Anti-Corruption

13 Fair competition

14 Responsible supplier relations

5

CONSUMER ISSUES15 Customer health and safety

16 Limitation of customers’ environmental footprint

17 Education on operational energy saving

18 Services, Technical assistance and Dispute management

6

COMMUNITY INVOLVEMENT19 Development of regions

20 Planning of responsible regions

7

HUMAN RIGHTS3 Management of Diversity

4 Respect for human rights

2

LABOUR RELATIONS & CONDITIONS5 Employee Health, Safety and Wellness

6 Industrial relations and Internal communications

7 Development of human capital

3

ENVIRONMENT8 Protection of water resources

9 Protection of soils and waste management

10 Management of equipment life cycle

11 Limitation of Greenhouse Gases

4

30/ THREE-YEAR PLAN RESULTS FOR 2015-2017

THEMES CSR TARGETS 2015 2016 2017 Comments 2017

> 90% permanent employment contracts

97.2 % 96.6 % 95.6 %

The objective of providing sustainable jobs was surpassed in each of the three years: the drop in percentage should not be interpreted as a U-turn by Loxam on this issue, but reflects our desire to increase the number of block release trainees within the company.

> 3% block release trainees 1.9 % 2.8 % 3.4 %

In three years, the number of block release trainees more than doubled at Loxam. This proactive policy was conducted to place block release at the heart of the recruitment policy, each year developing new initiatives: communication, partnership, open days, induction processes, and in 2017, block release days with a training course for tutors and trainees.

> 5% employees under 25 4.8 % 6.0 % 7.2 %

As a responsible company, our role is to help our young generations into the job world by signing up to commitments in a Generation Agreement. Several initiatives were conducted in 2016-17 to communicate better towards young people (Internet, social media, relations with schools), promote our jobs and, in parallel, encourage our managers to offer them a chance. The progression of this indicator far beyond our target is a signal that the message has got through.

> 20% employees over 50 22.1 % 23.2 % 23.2 %

Similarly, we must accompany those who allowed Loxam to successfully develop and ensure that our senior employees always feel at home in the company, by maintaining their employability and by being increasingly attentive to their working conditions. By the end of 2017, 100% of our branches were fitted with lifting tables, and commitments were made to allow senior night drivers to change to daytime work.

> 20 nationalities 31 31 34

All forms of discrimination must be prohibited. We have decided to adopt and reinforce this principal of the UN Global Compact within our code of ethics. We are very attentive to these subjects in our recruitment and also in our daily activities. And we are delighted to see the number of nationalities continue to increase and to welcome 34 different nationalities in France.

> 20% of women in workforce

19.7 % 19.3 % 19.8 %

In a sector of activity where more than 40% of employees have a job in a workshop or as drivers, every year we try to set targets to increase the number of women in our company. We have nearly reached 20%, but the target has not been fulfilled despite significant achievements: for example, 47% of our hire controllers today are women.

> 20% of women managers

21.6 % 21.0 % 20.0 %

Another satisfaction for the past three years is that, to within one percentage point, the same proportion of women as men are managers. It should be noted that the drop in the percentage in this indicator is related to an overall drop of the percentage of managers at Loxam.

< 15% employee churn 11.8 % 13.3 % 12.5 %

In a business sector where employee churn is often high, we are pleased to have maintained this indicator well below 15% over the past three years. This percentage is even more satisfactory since over this period, we incorporated several companies with sometimes significant headcounts. This percentage is also the reflection of our ability to positively onboard new employees.

THEMES CSR TARGETS 2015 2016 2017 Comments 2017

Rate Sick leave / WA / OI <5% 5.5% 5.2% 5.1%

Despite a slight drop, this rate remains too high due to a rate of absence caused by long-term illnesses. We must continue our efforts on this subject which must remain at the heart of our concerns, with an action plan initiated in 2018.

FR < 30 26 33 33

In spite of a large number of actions (quarter-hour safety meetings, monthly action plans, training, communication), we have observed our workplace accident frequency rate levelling off around 30 between 2015 and 2017. We cannot be satisfied with this, and in 2017 we launched a safety management initiative towards the entire management line. We hope that this will produce its effects in 2018.

GR < 1.5 1.8 1.4 1.3

While our initiatives have not long yet succeeded in lowering the frequency rate, the gravity rate dropped by 30% in three years; this is an encouraging result which should spur us to continue our efforts.

> 50% employees trained / year 55% 51% 61%

Continuous training continues to be an integral part of Loxam’s environmental policy. More than 50,000 hours were delivered every year over the past three years in France. It should be noted that we have heavily invested in our training centre in Bagneux which now has a Hall of Fame conveying the Loxam culture to all of our new recruits, and we have also built a workshop offering hands-on training for our technical staff.

100% of branches certified ISO 14001 100% 100% 100%

Once again, ISO 14001 certification was renewed at the end of 2017 for all of our branches.

1 Environment AP / year / branch Yes Yes Yes

Every year, an environment action plan is implemented in all of our branches. The input data for this action plan is made up of our environmental analysis and the requirements and expectations of our stakeholders.

> 650 t of HW processed 744 657 807

This year an increased partnership with our nationwide provider enabled us to improve the control of our waste management.

€6 million New Value of RP recycled

6,010 5,489 4,850

A different approach to the implementation of this service led us to prioritise service rate over the volume of parts, which explains the drop in this indicator. However, we still remain in a positive approach which has enabled Loxam, through the recycling of spare parts, to save more than €15 million in new value of parts in three years.

Impl. Monitoring of Water and Energy consumption

No No No

The number of facilities that we have to manage (approximately 500 branches in France), makes this monitoring difficult to implement with our numerous property providers and our various energy suppliers. We are not yet satisfied with the quality of information in our possession to be able to communicate them at this point.

Conduct a carbon footprint assessment No No No A range of solutions were studied in 2017 in order to meet

this requirement in 2018.

> Branches in >95% of French mainland Departments

98% 98% 98%

A network company leader on its domestic market has a responsibility to have nationwide roots. This is why we wish to maintain branches and therefore sustainable jobs across the entire country. The modernisation and digitalisation of our sector is not an obstacle to the maintenance of a locally rooted network, and we are delighted to be active in 98% of French mainland departments.

CSR criteria in choice of suppliers No Yes Yes

CSR issues are now automatically part of our discussions with our suppliers. Assessment criteria relating to their commitment to the subject is also applied before any supplier is listed.

32/ THREE-YEAR PLAN RESULTS FOR 2015-2017 LOXAM RESPONSIBLE RENTAL 2018 /33

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or manufactured in a sustainable development perspective. It also manages its solid and liquid waste in an environmentally friendly way.

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LOXAM – S.A.S. with capital of €230 818 150 Registered office: 256, rue Nicolas Coatanlem – 56850 CAUDAN – FRANCE

Registered in Lorient under no. 450 776 968 VAT no.: FR 81 450 776 968 – NAF code 7732 Z