The objective of internal control in Ramirent is to safeguard Ramirent’s assets and to ensure overall effectiveness and efficiency of operations to meet Ramirent’s strategic, including financial, targets. Additionally the internal control’s objective is to ensure compliance with applicable laws, regulations and Ramirent’s operating principles as well as the reliability of financial and operational reporting.

The Board of Directors approves the risk policy principles.The goal of risk management in Ramirent is to support the strategy and the achievement of the objectives by anticipating and managing potential threats to and opportunities for business.Risk assessment is conducted as a part of annual strategy process.Risks are evaluated in relation to achievement of strategic, including financial, targets of Ramirent. In the risk assessment the impact and probability of each risk is evaluated and risks are classified as strategic risks and other risks. The strategic risks are risks that may affect reaching strategic objectives. Other risks are risks not affecting reaching the strategic objectives of Ramirent Group. Indicators to follow are set and measures to be taken if the risks materialize are described in an action plan drafted during assessment of risks.

The objectives of internal control and risk management systems over financial reporting are to ensure that the financial reports disclosed by Ramirent give essentially correct information about the Company finances, are reliable and that Ramirent complies with the applicable laws, regulations, InternationalFinancial Reporting Standards as adopted by EU (IFRS) and other requirements for listed companies. The overall system of internal control in Ramirent is based upon the framework by the Committee Of Sponsoring Organizations of the Treadway Commission (COSO) and comprises five principal components of internal control: the control environment, risk assessment, control activities, information and communication, and monitoring.

CONTROL ENVIRONMENT

Ramirent’s Board of Directors bears the overall responsibility for the internal control over financial reporting. The Board has established a written formal working order that clarifies the Board’s responsibilities and regulates the Board’s and Working Committee’s internal distribution of work. Working Committee’s primary task is to ensure that established principles for financial reporting, risk management and internal control are followed and that appropriate relations are maintained with the Ramirent’s auditors. The responsibility for maintaining an effective control environment and the ongoing work on internal control as regards the financial reporting is delegated to the CEO.

Ramirent’s Internal Control Function, which includes also internal audit, reports all relevant issues to the Working Committee and the CEO. The function focuses on developing and enhancing internal control over the financial reporting in Ramirent by concentrating on the internal control environment and by monitoring the effectiveness of the internal control.

Ramirent’s operating model is decentralized with local decision making and local accountability. The business model and customers are local and most of the business decisions are made in the operating countries. Common group instructions are given by the head office in the areas e.g. fleet management, finance, credit risk and financial reporting.Internal control at the country level is responsibility of the Country Manager in accordance with the Group framework.

Ramirent’s financial reporting process consists of external and internal accounting. Ramirent prepares consolidated financial statements and interim reports in accordance with the International Financial Reporting Standards (IFRS). Financial statements include also other information that is required by the Securities Markets Act, as well as the appropriate Financial Supervision Authority’s standards and NASDAQ OMX Helsinki Ltd’s rules. The Board of Director’s report of Ramirent and parent Company financial statements are prepared in accordance with Finnish Accounting Act and the opinions and guidelines of the Finnish Accounting Board.

External financial reporting in Ramirent is based on Group Accounting and Reporting Manual which sets forth the basis for external financial reporting according to IFRS. Detailed reporting instructions and time schedules have been established and communicated to all persons involved with the financial reporting process in due time.

RISK ASSESSMENT

Ramirent’s risk assessment regarding financial reporting aims to identify and evaluate the most significant risks affecting the financial reporting at the Group, reporting segment and country levels. The assessment of risk includes for example risks related to fraud, risk of loss or misuse of assets. Based on the risk assessment results control indicators are set to ensure that the fundamental requirements placed on financial reporting are fulfilled. Information on development of essential risk areas, indicators, planned and executed activities to mitigate risks are communicated to the Working Committee.

CONTROL ACTIVITIES

Ramirent has identified key processes for the financial reporting purposes and based on the risk assessment internal controls have been designed. Key processes are financial reporting process, rental asset management, acquisitions, income and credit control, cash management and IT processes.

Common control points for Ramirent business units are defined for the key process and set forth minimum requirements for each process. Examples of such internal control activities are authorizations and approvals, account reconciliations, physical counts of assets, analysis and segregation of key financial duties. Country Manager is responsible for arranging an adequate internal control within the country.

Control activities include also business and finance results analysis on a monthly basis. These analyses are performed in country, segment and group level by the management and the Board of Directors. Ramirent Board of Directors reviews interim and annual reports and approves reports before publication.

INFORMATION AND COMMUNICATION

To secure effective and efficient internal control environment, Ramirent’s internal and external communication is open, transparent, accurate and timely. Information regarding internal policies and guidelines for financial reporting i.e. Accounting Manual, Reporting Manual and Disclosure Policy, are available on Ramirent’s intranet. Ramirent arranges training for personnel regarding internal control tools. Internal control reports the results of the work on internal control to the Working Committee at least biannually. The Working Committee reports to the Board at least once a year.

MONITORING

Ramirent is constantly monitoring effectiveness of its internal controls. The Internal control and audit function supports the management by evaluating the operation of internal control and by giving recommendations on development of internal controls. Ramirent is also reviewing its rental fleet and equipment on a regular basis by audit visits.Internal audit compiles an annual audit plan, the status and findings of which it regularly reports to Ramirent management, auditors and the Working Committee.

Internal Control function

Ramirent’s Internal control participates in the development of risk management in Ramirent’s operations, development of overall control environment, monitors compliance with internal control framework and manages development projects, leads internal audit and coordinates audit work in Ramirent Group.

Internal Audit

Internal audit assesses theefficiency and appropriateness of operations and examines the functioning of internal controls in Ramirent Group. Internal audit seeks to ensure the reliability of financial and operational reporting, compliance with applicable laws and regulations, and proper management of the Company’s assets.

Internal audit is independent from the operational management. Internal audit reports to the Working Committee and at least once a year to the Board of Directors. Audit focus areas and annual audit plans are approved by the Working Committee. Audit focus areas are based on risk assessment.

Whistle blowing

Ramirent has established a whistle blowing system. Any person has a possibility to anonymously or under his/hers own name access an independent service provider and report any suspected financial misconduct or fraudulent activities. The service is operated in all languages in use in the Ramirent Group and report can be given either in written form or through telephone service.Suspected misconduct is investigated immediately and confidentially. Suspicions and results of the investigations are reported to Working Committee.The legal function and other functions will implement any measures consequential to the misconduct or any other action deemed necessary to prevent misconduct in the future and improve control environment.

COMPLIANCE WITH LAWS AND CODE OF ETHICS

Ramirent seeks to comply with applicable laws and statutes as well as generally accepted practices of the business. Additionally, Ramirent’s operations are guided by Code of Ethics and Company values. Each Ramirent employee has to be familiar with the principles of the Code of Ethics, Company values, the legislation and operating guidelines of their own areas of responsibility. The operations are monitored by the Working Committee.