Financial Results Q Wednesday 29 August 2018

Transcription

1 Financial Results Q Wednesday 29 August 2018

2 Loxam in a nutshell Europe s #1 equipment rental company. World s #3 powered access player LTM PF Group Revenue LTM PF Group EBITDA 1,465m 495m Divisions Key figures Generalist France Specialist France International division Contribution to revenue 44% 41% 15% Brief description Equipment for construction, industries, landscaping, local authorities and services Specialist equipment such as aerial work platforms, generators, portable accommodation, heavy equipment for civil engineering Generalist and specialist branches in 13 European countries, the Middle East, Morocco, Brazil and Colombia Branches 30 June 2018 Number of branches: 415 Number of branches: 81 Number of branches: 257 Key financial data LTM PF 30 June 2018 Total revenue: 639m EBITDA: 216m (34% margin) Total revenue: 222m EBITDA: 74m (33% margin) Total revenue: 604m EBITDA: 199m (33% margin) Brands LTM PF: unaudited last twelve months data to 30 June 2018, proforma for the acquisitions of Cramo Equipment Rental Denmark, Nacanco, Swan, Degraus and Nove 2

3 Business Overview Gérard DEPREZ Q Financial Results Wednesday 29 August 2018

4 Q Highlights Solid revenue and EBITDA performance Financial highlights Revenue +4.8% like-for-like and at constant FX EBITDA +7.9% like-for-like and at constant FX Stable Net debt to EBITDA ratio as of 30/06/2018: 4.43x Business highlights Favorable macro and construction environment Pricing improvement Integration of French powered access and Spanish operations Acquisition of Nove (Italy) Post quarter Agreement to acquire UK Platforms Partial redemption of two bonds 4

5 Continuation of organic growth, consistent with market trend Revenue Quarterly Change (Y to Y) Like-for-Like (a) 14% 14% 16% 15% 11% 11% 12% 10% 9% 8% 7% 6% 5% 4% 1% 4% 6% 6% 6% 4% 6% 6% 5% 5% 5% 4% 3% Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Generalist France Specialist France International (a) Like-for-like means changes in revenues for the period indicated compared to the prior comparable period, excluding changes in the scope of consolidation and at constant exchange rates. 5

6 Good conversion of additional revenue into EBITDA EBITDA excl. gains Quarterly Change (Y to Y) Like-for-Like (a) 31% 27% 25% 22% 19% 6% 15% 6% 5% 10% 11% 12% 3% 10% 0% 11% 15% 12% 8% 12% 13% 5% -2% -1% 0% -10% -14% Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Generalist France Specialist France International (a) Like-for-like means changes in EBITDA for the period indicated compared to the prior comparable period, excluding changes in the scope of consolidation, and; as from Q at constant exchange rates 6

7 Generalist France Sound revenue growth reflecting favorable construction environment Key Figures Q Q Revenue 159m 168m Revenue evolution % EBITDA 59m 61m EBITDA margin 37.3% 36.1% Revenue up by 5% Stable EBITDA margin excluding capital gains Nb of branches (30 June) Headcount (30 June) Share of Q group revenue 45% 7

8 Specialist France Continuation of EBITDA margin improvement Key Figures Q Q Revenue 53m 55m Revenue evolution +3.1% EBITDA 18m 19m EBITDA margin 32.8% 35.0% Nb of branches (30 June) Revenue up by 3% EBITDA margin up by 2 pts Merger of powered access businesses on track Headcount (30 June) Share of Q group revenue 15% 8

9 International division Significant improvement of EBITDA margin Key Figures Q Q Revenue 143m 150m Revenue evolution +5.0% EBITDA 46m 52m EBITDA margin 32.0% 34.4% Nb of branches (30 June) Headcount (30 June) Revenue up by 5% l-f-l and at constant FX EBITDA up by 14% l-f-l and at constant FX Acquisition of Nove and agreement to acquire UK Platforms Share of Q group revenue 40% 9

10 Acquisition of Nove Company founded in 1998, headquartered in Rome Specialist of powered access equipment, with its main presence in Centre region Network of 6 branches 2017 revenue: 10m Fleet of 700 machines Good geographical complement Nacanco Nove 10

11 Upcoming acquisition of UK Platforms Established powered access equipment player Fleet of 3000 units Agreement to buy from HSS signed in July Enterprise value of GBP 60m Signing of a multi-year preferred supplier agreement with HSS for powered access equipment sourcing Closing subject to UK anti-trust clearance, likely to take place during Q

12 Fleet capex and disposals Quarterly Gross Fleet Capex and Disposals ( m) m 300 Q2 Capex: 121m (vs. 137m in Q2-2017) GBV of Q2 Disposals: 44m (vs. 45m in Q2-2017) Fleet capex guidance of m for FY H H Gross book value of disposed fleet equipment Fleet Capex 12

13 Financial Results Patrick BOURMAUD Q Financial Results Wednesday 29 August 2018

14 Quarter and semester P&L A robust financial performance Q Q /17 Var. 18/17 Var. L-f-L (a) H H /17 Var. 18/17 Var. L-f-L (a) Revenue 356m 373m +4.8% +4.8% 653m 717m +9,7% +4,8% EBITDA 124m 133m +7.1% +7.9% 208m 232m +11,6% +7,1% EBITDA margin 35% 36% +0.8 pts +1.0 pts 32% 32% +0.5 pts +0.7 pts EBIT 62m 59m (4.5)% - 93m 93m (0.3)% - EBIT margin 17% 16% (1.5)pts - 14% 13% (1.3)pts - Net Financial Expense (41)m (25)m - - (60)m (50)m - - (a) Like for like variation means Q2 and H excluding Degraus, Swan and Loxam Access SRL compared to Q2 and H excluding Gardemann and at constant exchange rate. 14

15 EBITDA bridge Satisfactory additional revenue flow through into EBITDA m Q EBITDA Bridge at constant perimeter (5) (1) EBITDA Q Gross margin Staff costs Other operating costs Net gains on fleet disposals Changes in perimeter(a) EBITDA Q (a) Changes in perimeter include the acquisitions of Cramo Equipment Rental Denmark, Nacanco, Swan and Degraus and the disposal of Gardemann. 15

16 Trade WCR Improvement vs. June % Quarterly Trade Working Capital Requirement 14% 13% 13% 13% June 17 Sept. 17 Dec. 17 March 18 June 18 Trade WCR - m (a) Trade WCR in % of PROFORMA LTM Revenue (a) Trade WCR = WCR relating to business and income tax (excluding WCR related to fixed assets) 16

17 Cash flow generation ( m) EBITDA before capital gains on disposal and other items Proceeds from disposals of fixed assets Gross capital expenditure (145) (129) (261) (226) Other operating expenses 1 (0) (1) (0) Financial income and expense (26) (24) (44) (48) Income tax (6) (4) (11) (6) Change in trade WCR (27) 5 (30) (3) Change in WCR relating to fixed assets 27 (7) 47 (10) Recurring Free cash flow (49) (21) (87) (52) Non recurring items (1) (43) 5 (68) 6 Free cash flow (93) (16) (155) (46) FX impact and acquisitions / disposals 86 (18) (764) (16) Dividends, share capital increase / (decrease) (5) (7) (14) (7) HY cost amort and redemption (1) (1) (2) (3) Change in net debt (13) (42) (935) (71) Q Q H H (1)Q non-recurring items : 5m decrease of advance payments for fleet orders (Macron tax incentive). Q non-recurring items: payment of 26m deposits for fleet orders (Macron tax incentive), 4m of excess income tax deposit, and 14m of bridge facility fees, less 4m of WCR decrease related to advisory cost and taxes on Lavendon take-over and less of 5m of income tax 17

18 Leverage ratio Stable vs. 31 Dec 2017 and 31 Mar x 4.6x 4.4x 4.5x 4.4x Jun Sep Dec Mar Jun 2018 Net Debt ( m) Net debt / PF EBITDA (a) Leverage ratio proforma for the acquisitions and disposals of the past twelve months 18

19 Debt maturity profile as of 30 June 2018 Pro forma for the SSN 2021 and Sub 2022 partial redemption of 85m Debt maturity profile - Pro Forma (in m) 653m Bilaterals and financial leases 239m Senior Secured Notes 225m Senior Subordinated Notes 300m Senior Secured Notes 250m Senior Secured Notes 300m Senior Secured Notes 250m Senior Subordinated Notes m Cash and Cash Equivalents 75m RCF (undrawn) Note: data as of 30 June 2018, proforma for the partial redemption of the Senior Secured Notes due 2021 and Senior Subordinated Notes due 2022, which took place on 23 July 2018, respectively for 60m and 25m. 19

20 Roadmap Gérard DEPREZ Q Financial Results Wednesday 29 August 2018

21 Roadmap for H Enduring positive construction environment Lower capex spend Completion of UK Platforms acquisition 21