INVESTOR PRESENTATION LONDON 14 JANUARY 2014

Transcription

1 European leader in the Equipment Rental Market RENT LOXAM, RENT RELAX INVESTOR PRESENTATION LONDON 14 JANUARY 2014

2 DISCLAIMER This presentation does not constitute or form part of and should not be construed as an offer to sell or issue, or the solicitation of an offer to buy or acquire, securities of LOXAM (the Issuer ), in any jurisdiction or an inducement to enter into investment activity. It is solely for use at an investor presentation for information only. It does not contain all of the information relating to the Issuer or its business that may be material to an investor. No part of this presentation, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. The information contained in this presentation has not been independently verified. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. None of the Issuer or any of its respective affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with the presentation. This presentation includes "forward-looking statements". These statements contain the words "anticipate", "believe", "intend", "estimate", "expect" and words of similar meaning. All statements other than statements of historical facts included in this presentation, including, without limitation, those regarding the Issuer s financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to the Issuer s projects and services), are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Issuer to be materially different from results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Issuer s present and future business strategies and the environment in which the Issuer will operate in the future. These forward-looking statements speak only as at the date of this presentation. Each of the Issuer and its respective agents, employees and advisers, expressly disclaims any obligation or undertaking to update any forward-looking statements contained herein. The information and opinions contained in this document are provided as at the date of this presentation and are subject to change without notice.

3 PRESENTATION OF SPEAKERS Stéphane Hénon Managing Director 13 years with LOXAM Patrick Bourmaud CFO 9 years with LOXAM

4 AGENDA Introduction Equipment rental market overview Business overview Financial overview Conclusion Q&A

5 INTRODUCTION

6 2013 HIGHLIGHTS Commitment to our 2013 plan Revenues in line with decrease in construction Diversification of Capex towards new customers ERP rollout Generalist network: towards a unique organization and brand FY13 key financials estimates Revenues: c. 800 million EBITDA margin > 30% Fleet capex c. 200 million Net financial debt below 850m

7 GENERAL OVERVIEW LTM Sept-13 Group Revenues 799m (of which 681m or 85% in France) LTM Sept-13 Group adj. EBITDA 241m (of which 210m or 87% in France) Division level Key figures Generalist division - France Specialist division - France International division 15% Contribution to LTM Sept-13 revenues 68% 17% Brief description Equipment for all construction, industrial, landscaping and local authorities activities Specialist equipment, such as aerial work platforms, generators, portable accommodation, heavy equipment for civil engineering Generalist and specialist agencies in 9 European countries and Morocco Branches Number of branches: 450 Number of branches: 62 Number of branches: 88 Key financial elements LTM Sept-13 Total revenue: 545m Adj.EBITDA: 162m (30% margin) Total revenue: 136m Adj. EBITDA: 47m (35% margin) Total revenue: 118m Adj. EBITDA: 31m (26% margin) Brands LOXAM Power LOXAM Module LOXAM Access LOXAM LEV LOXAM TP LOXAM Event LOXAM Switzerland LOXAM Belgium LOXAM Germany LOXAM Access UK LOXAM Spain LOXAM Netherlands LOXAM Denmark LOXAM Morocco LOXAM Laho Tec LOXAM Ireland LOXAM Luxembourg

8 KEY INVESTMENT CONSIDERATIONS 1 Favorable long-term market trends 2 Largest rental company in Europe 3 Highly diversified and fragmented client base with established loyalty from its customers 4 Ownership of one of the largest and most diversified fleet in Europe, renowned for its quality and availability 5 An innovative company with a flexible and responsive network 6 Proven ability to manage business cycles : robust financial track record

9 EQUIPMENT RENTAL MARKET OVERVIEW

10 EUROPEAN CONSTRUCTION MARKETS HEADING TOWARDS RECOVERY IN % 9,8% 8% 8,2% 6% 4% 2% 0% 0,3% 2,7% 0,9% 1,2% 1,2% 1,6% 2,8% 3,6% 1,2% 0,4% 3,4% 2,4% 3,3% 4,2% 2,4% 3,1% -2% -1,5% -1,3% -1,1% -4% -2,8% -3,5% -6% 2013E 2014E 2015E France Germany Belgium Switzerland Netherlands Denmark UK Ireland -5,0% Source: December 2013 Euroconstruct report

11 LONG TERM GROWTH OF FRENCH RENTAL MARKET 4,5 4,0 3,5 3,0 2,5 2,3 2,4 2,8 3,2 3,0 2,7 2,8 3,0 3,3 3,6 3,7 3,2 3,3 3,8 3,9 2,0 1,5 1,5 1,6 1,7 1,7 1,8 1,0 0,5 0, Historic value evolution of the French equipment rental market since 1993 ( bn) Source: DLR

12 EUROPEAN RENTAL MARKET SET FOR GROWTH European rental market growth E 15% 13,5% 10% 5% 0% 0,1% 1,6% 4,0% 0,1% 0,7% 2,4% 3,3% -5% -10% -11,6% -15% E 2014E 2015E Source: European Rental Association, October 2013

13 BUSINESS OVERVIEW

14 LOXAM IS THE LARGEST RENTAL COMPANY IN EUROPE France 2012 market shares Europe 2012 revenue ( m) 18% 1.5x 9.0x % % Source: KHL International Rental News 2011 top 100 international ranking and top 50 European ranking

15 DENSEST NETWORK IN FRANCE #1 in France Leader in all French regions Leader in all major cities # branches Generalist Specialist Specialist branches Generalist branches

16 LARGEST FOOTPRINT IN EUROPE Denmark Belgium Number of branches: 25 Number of branches: 15 Germany The Netherlands Number of branches: 14 Number of branches: 11 UK Spain Number of branches: 10 Number of branches: 8 Switzerland Norway Number of branches: 7 Number of branches: 4 Morocco Ireland Number of branches: 2 Number of branches: 1 Morocco Sweden Luxembourg Number of branches: 1 Number of branches: 1 Leader (top 3): national positioning Challenger: regional positioning

17 ACQUISITION OF DANSK LIFT Powered access equipment rental specialist 6 branches in Denmark, 4 in Norway and 1 in Sweden Key data: 2012 revenues 17+ millions ; strong EBITDA margin Fleet of 1,600+ machines 80 employees Leader in Denmark Diversification towards Access Bergen Stavanger Trondheim Oslo Aalborg Herning Fredericia Aarhus Copenhagen Malmö Kalundborg

18 GROWTH IN FLEET SIZE Historical fleet investments and disposals ( m) FY12 Sales split by type of equipment Building & Others 23% 27% Earth moving Modulars Energy 4% 6% Compaction 8% 9% Handling 23% Aerial work platform E Gross book value of disposed fleet equipment Fleet investments

19 DIVERSIFICATION BENEFITS FROM CAPEX GROWTH Gardening & Landscaping equipment

20 A DYNAMIC, CONSTANTLY INNOVATING GROUP Services innovation New products CSR Quality and Sustainability ISO 9001: demonstrating Loxam s ability to provide quality products ISO 14001: proving Loxam s commitment to the environment Commitment to Corporate Social Responsibility New technologies Loxforce CRM RentalMan E-invoicing

21 FINANCIAL RESULTS

22 HISTORICAL RESILIENCE IN MARGIN AND CONSISTENT DELEVERAGING Revenues ( m) Branches CAGR 05 08: 20.4% (17.7)% 09 12: 5.9% Adj. EBITDA ( m) and Adj. EBITDA margin a 33% % 36% 36% % 33% 34% 33% (a) Adjusted EBITDA excludes non-recurring costs. These adjustments amounted to 10.2m in FY 2011 and 7.2m in FY ,6x 2,9x Net debt ( m) and Leverage ratio (net debt / Adj. EBITDA) 1, ,8x 3,6x 3,8x 3,5x 1, ,1x ,8x

23 RESILIENT PERFORMANCE DESPITE SLOWDOWN IN 2013 ( m) YTD 2012 (9 months) YTD 2013 (9 months) Revenues % of change Generalist France ,1% Specialist France ,0% International ,1% Total Revenues ,7% Adj. EBITDA (a) Margin Margin Generalist France ,6% ,9% Specialist France 38 36,9% 35 34,6% International 27 30,9% 22 25,2% Total adj. EBITDA ,6% ,9% Adj. EBIT (a) 96 15,5% 83 14,0% Net income 42 6,8% 27 4,6% (a) Adjusted EBITDA and Adjusted EBIT exclude non-recurring costs. These adjustments amounted to 3m in 9m YTD 2012 and 5.2m in 9m YTD 2013 and have been allocated to the Generalist division.

24 WORKING CAPITAL REQUIREMENT BACK TO NORMAL LEVEL

25 TRADE WCR WAS UP AT 30 SEPTEMBER 2013

26 LOWER EBITDA, HIGHER CAPEX & WCR DRIVE FCF DOWN ( m) YTD 2012 (9 months) YTD 2013 (9 months) EBITDA before capital gains on fleet disposal Proceeds from disposals of fixed assets Gross capital expenditure (90) (151) Financial income and expense (23) (34) Income tax (31) (17) Change in working capital requirement (2) (42) Free cash flow 70 (63)

27 GROSS DEBT AS OF SEPT 2013 AT 1,010m

28 CONCLUSION

29 2014 ROADMAP 2013 in line with expectations Recovery in European construction markets from 2014 (In France, recovery expected from 2015) Dynamic capex policy, leading to renewal and diversification of fleet Growth sustained by organic growth and acquisitions Sound financial performance Dynamic innovation policy

30 European leader in the Equipment Rental Market RENT LOXAM, RENT RELAX THANK YOU!