2023 was the first year for the Storent Group operating with the new ownership structure and the main emphasis was on the further growth of the rental business. Storent made significant investments in the fleet by investing 13 million euros in new equipment; in addition, Storent continued to invest in the improvement of ERP systems, digitalization and automation of processes. Total turnover for the reporting was 43,8 million euro, EBITDA was 13.7million and Profit before income tax was 5.5 million.

During the year the management of the Group decided to introduce changes in the accounting estimate of fixed assets depreciation, introducing residual value, as its necessity was evidenced by the profitable sale of used equipment on the secondary market. The depreciation of fixed assets by month was recalculated accordingly for the whole year 2023, which brought about changes in the previously published unaudited quarterly results for 2023. In addition, at the year end and following significant growth in equipment prices, the Storent Group introduced changes in the accounting policy to measure fixed assets – machinery and equipment – applying revaluation method. The fair value of the fixed assets was determined by engaging certified independent appraisers. As of December 31, 2023, the revaluation of rental fixed assets created a revaluation reserve of 40.4 million euros, which is reflected in the Group’s equity.

In 2023, Storent successfully completed its bond issue program, raising 15 million euros. The funds from both tranches of this bond issue were utilized to fully settle liabilities with the previous Storent Investments AS owner, Levina Investments S.a.r.l., refinance the preceding bond program, and invest in expanding and renewing our fleet. The Group’s consolidated balance sheet has a stable structure consisting of 63% shareholders equity, 24% long term liabilities and 13% short term liabilities. Non-current assets constitute 91% of the total assets.

The Baltic region, which accounts for approximately 72% of the Group’s net revenue, showed an increase in both, turnover and profit. In the Baltic region, the construction sector in the year 2023 has grown by 14%, compared to the year 2022 with a 25% increase in Latvia, a 17% increase in Lithuania, and 4% in Estonia. In the Nordic countries, because of the strategy to focus on specific product groups, Storent has been able to maintain its position in the market of individual rental products. In Sweden, Storent focused more on the rental of telescopic handlers and the sale of related services. The Finnish company continued to adapt to the situation of falling construction volumes, refocusing attention on industrial customers, and greater activity was observed specifically in the Northern region of Finland.

The management of the Storent Group predicts that in 2024 the turnover will continue to grow, as a result of IT system improvements ensuring increased automation and efficiency of sales processes, internal structure changes and investments in the fleet planned to exceed 20 million euros. As the development of the construction market has a big impact on the Group, the management is closely monitoring the situation and adjusting strategies in each country, where its subsidiaries operate. In addition to that, the Group is using other market opportunities to ensure optimal business returns, such as the military sector, events and farming. The focus of the Storent Group in 2024 is increasing the market share and improving the Group’s profitability. After careful evaluation of the market trends and its strategies, the Group launched its next bond issue in March of 2024 raising total amount of 10 million euros. The goal of this issue is to accelerate the Group’s expansion, continue enlarging the equipment park, and open new rental depots.

In the beginning of March 2024, the Storent Holding Group underwent a legal reorganization process, which has resulted in the transfer of the shares of five subsidiaries from Storent Investments to Storent Holding, the increase of share capital of Storent Holding to EUR 33 500 000, the change in the corporate form to a joint stock company, the change in the corporate name of Storent Holdings SIA to Storent Holding AS and disposal of the indirect equity interest in Storent OOO.

As a result of the audit, an inaccuracy was found, which affects the total result of EUR 479,862 in changes in the recalculation of depreciation, as a result of the introduction of scrap value.

Baiba Onkele

Storent Holdings CFO

Mobile: + 371 29340012

E-mail: baiba.onkele@storent.com

www.storentholding.com