V E H O 2019

LATVIA

LITHUANIA

SWEDEN

FINLAND

ESTONIA

V E H O I N B R I E F

TURNOVER 2018

1167BUSINESS AREAS

l Veho Passenger CarsThis business area covers import, dealership, maintenance and repairs of Mercedes-Benz and smart passenger cars. Independent dealers in the Mercedes-Benz network complement Veho’s dealerships. Veho dealerships also sell and service Citroën, Peugeot, Ford, Honda and Škoda cars. Sixt car rental and the Veho Go concept provide mobility services. The Vaihtoplus chain specializes in sales and servicing of used cars.

l Veho Commercial VehiclesThe business area covers import and retail of Mercedes-Benz and Fuso Canter commercial vehicles and Setra buses, servicing and spare parts services for Sisu trucks, and CharterWay Rent vehicle rental. We also offer servicing for other brands, trailers and body builds. The core of our business is made up of our effective and nationwide sales and service network, which meets our customers' needs. l Operations in Sweden and the Baltic countriesIn Sweden, Veho has dealerships for Mercedes-Benz passenger cars, vans and trucks in Stockholm, Karlstad, Örebro and Västerås.

Veho also imports Citroën to the Baltic countries. In Tallinn, and Tartu, Estonia, our operations include retail sales of Citroën and Honda. In Latvia and Lithuania, Citroën is sold by independent retailers. l Assistor Oy AbLogistics company Assistor delivers customer solutions for managing spare part and vehicle logistics and related data, from factory to end user. Its versatile services include transport, quality control, import servicing, warehousing, fitting, vehicle taxation, registration, customs and a webshop.

l Veho Passenger Cars 45 %

l Veho Commercial Vehicles 30 %

l Sweden and

the Baltic Countries 22 %

l Assistor 3 %

million €

This year, Veho celebrates 80 years of business. Established in 1939, the company is a Finnish car dealership that also has operations in Sweden and the Baltic countries. The company was founded in 1939 to import Mercedes-Benz vehicles – and the

brand is still at the core of our operations. As a partner, Veho offers versatile mobility services and transport solutions, ranging from passenger cars to heavy trucks. Our operations are guided by customer experience.

The cars of today are top technology products. We also aim for the top in developing our services and all our operations in the digital era. Our future goal is to offer more and more sustainable mobility solutions.

A S T R O N G Y E A R W I T H M A N Y C H A N G E S

2018 was a year of change. Veho’s operating environment underwent strong transitions, for example in September, when the so-called WLTP standard caused changes to emis-sion testing and taxation. Veho also prepared for significant changes that

came into force from the beginning of 2019: we renewed our strategy and our organisational structure. In the midst of the turbulence, the Group made a strong turnover and profit. Our core business continued its growth track and the Group strengthened its solvency. We were also happy to see very positive development in our international business.

Investing in the futureWe believe that a strong focus will pave the way for our future success. It requires abandonment, but also new construction and acquisitions. In April 2018, we sold our PSA functions in Turku. In August, the Vaihtoplus chain opened a new outlet in Ideapark in Lempäälä. Now it is the biggest trade-in car centre in Scandinavia. In September, we consolidated our position as a Mercedes-Benz dealership in Sweden through an acquisition. At the turn of the year, we also executed the sales of our Ford business in Espoo.

In Commercial Vehicles, we made a decision to invest in a new customer service centre for vans and trucks in Vehkala in Vantaa that will replace our premises in Lommila, when ready. We also invested in using renewable energy: We installed a system with 128 solar panels on the roof of our Veho Airport dealership in Vantaa.

Creating growth on our ownThe market does not seem to bring growth, especially not in Fin-land. The much talked-about forces of change, like digitalisation, the change in consumer behaviour, the need to reduce emis-sions from traffic, are, however, still there. We are working to develop tomorrow’s solutions in line with our motto of "Sustain-able mobility”. To ensure our necessary renewal, we established a New business activities unit, which is developing new kinds of services for the future needs of businesses and consumers.

Organising to customer needsWe renewed our organisational structure to be able to start the year 2019 with a model that combines our import organi-sations for cars and vans. With the reform, we aim to maximise the use of our car network in Finland to include sales and servicing of Mercedes-Benz vans. At the same time, we will continue to strongly develop our truck and bus business. I am convinced that this will allow us to meet the various requirements of both our business and consumer customer even better than before.

1 800-star strategyIn 2018, we updated our strategy for 2019 to 2021. At the cen-tre of our journey, we have one guiding star. We will implement the same change in Finland that has already been a great suc-cess in Sweden, namely, to focus on cooperation with Daimler and Mercedes-Benz. We will also give up our other passenger car representations. This will be the biggest cultural change in our recent history. At the heart of our success are our more than 1,800 employees. That is why we are now stating that each of us is a star.

Juha Ruotsalainen CEO, Veho Oy Ab

1 042

2014

K E Y F I G U R E S

EMPLOYEESBy Business Area

41%

29%

9%

18 %

3%

TURNOVER (million e)

EMPLOYEES ON AVERAGE

SOLIDITY Equity (million e) / Solidity (%)

DEVELOPMENT IN SWEDEN AND IN THE BALTIC COUNTRIES (million e / %)

Solidity (%)

20182014

20182017

50 %

40 %

20 %

0 %

200

150

50

0

30 %

10 %

100

OPERATING PROFIT (million e / %)

15

40

10

35

30

5

0

1,5 %

3,5 %

3,0 %

2,5 %

1,0 %

2,0 %

0,5 %

0,0 %2018

Operating profit-%

Relative share of group sales in Sweden and in the Baltic countries (%)

25

20

36,4

2017

35,5

2016

26,3

268194

179165

2016

143

300

50

100

150

200

250

0

30 %

5 %

10 %

15 %

20 %

25 %

0 %2018

1 167

2016

1 213

0

1 400

600

400

800

1 000

1 200

2 105

2015

2014

0 2 500500 1 000 1 500 2 000

2016

1 914

2018 1 886

2017

1 890

2014

7,2

2015

22,7

2014

117

2015

131

2017

1 223

1 860

2015

1 063

Veho Passenger

Cars

Veho Commercial

Vehicles

Sweden and the Baltic Countries

Group Services

Logistics Services

VEHO OY ABMäkituvantie 3 | P.O. Box 1006, FI-01511 Vantaa | Tel. +358 (0)10 569 12veho.fi | vehotrucks.fi | vehobil.se | vehoeesti.ee | assistor.fi | sixt.fi

VEHO.FIVEHOTRUCKS.FI

OMAVEHO.FI

To create a good customer experience, our staff needs to be competent and motivated.

Their experience and competence is a critical success factor that we work towards

according to our values and with respect for responsibility.