Financial Results Q4 & FY 2017

Transcription

1 Financial Results Q4 & FY 2017

2 Loxam at a glance Europe s #1 equipment rental company. World s #3 powered access player LTM PF Group Revenue LTM PF Group EBITDA 1,435m 479m Divisions Key figures Generalist France Specialist France International division Contribution to revenue 43% 42% 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 31 Dec 2017 Number of branches: 419 Number of branches: 81 Number of branches: 253 Key financial data LTM PF 31 Dec 2017 Total revenue: 623m EBITDA: 213m (34% margin) Total revenue: 216m EBITDA: 69m (32% margin) Total revenue: 596m EBITDA: 191m (32% margin) Brands LTM PF: Last twelve months data to 31 Dec 2017, proforma for the acquisitions of Hune, Lavendon, Cramo Equipment Rental Denmark, Nacanco, Swan and the disposal of Gardemann 2

3 Business Overview Stéphane HENON Q4 & FY 2017 Financial Results

4 Q4 & FY 2017 Highlights Outstanding year 2017: solid organic growth and transformational M&A FY 2017 highlights Revenue of 1368m, growing by 48% (+8.5% like-for-like and at constant FX) EBITDA margin of 34% (+ 1pt vs. FY 2016) Net debt to proforma EBITDA (31 Dec 2017): 4.43x Solid macro and construction environment supporting French operations Widespread organic growth across International division Entry into new geographies: Middle East, Italy and Portugal Q highlights Revenue: +10.7% l-f-l and at constant FX EBITDA margin of 36.7% (+1.4pts vs. Q4 2016) + 36m Free cash flow before M&A Acquisition of Nacanco (Italy) and Swan (Ireland); majority ownership in Brazilian subsidiary 4

5 2017 solid revenue trend, concluded by strong Q4 Revenue Quarterly Change (Y to Y) Like-for-Like (a) 14% 14% 16% 15% 3% 2% 3% 2% 7% 6% 5% 4% 1% 4% 11% 11% 12% 10% 9% 8% 6% 6% 6% 6% 4% -1% -1% Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 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 Q4 EBITDA impacted by fleet capital gains EBITDA Quarterly Change (Y to Y) Like-for-Like (a) 34% 27% 25% 12% 11% 7% 6% 7% 14% 12% 17% 10% 8% 6% 8% 16% 7% 8% 3% 6% 15% -2% -2% -1% -13% -16% -14% Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 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 6

7 Generalist France Strong organic growth during Q4, driven by construction cycle Key Figures FY 2016 FY 2017 Revenue 573m 623m Revenue evolution % EBITDA 198m 213m EBITDA margin 34.5% 34.3% Nb of branches (31 Dec) Headcount (31 Dec) Q4 revenue: +11.9% Q4 EBITDA margin: 35.9% EBITDA growth thanks to stable operational set-up Confirmed confidence of construction sector Share of 2017 group revenue 46% 7

8 Specialist France Revenue growth boosted by Lavendon France integration Key Figures FY 2016 FY 2017 Revenue 164m 213m Revenue evolution % EBITDA 51m 68m EBITDA margin 31.1% 32.1% Nb of branches (31 Dec) Q4 revenue: +9.3% like-for-like Q4 EBITDA up by 14.7% like-for-like 2016 network expansion bearing fruit Headcount (31 Dec) Share of 2017 group revenue 16% 8

9 International Transformational year for a major division of the group Key Figures FY 2016 FY 2017 Revenue 190m 532m Revenue evolution % EBITDA 51m 177m EBITDA margin 26.8% 33.3% Nb of branches (31 Dec) Q4 revenue: +8.3% like-for-like and at constant FX Q4 EBITDA: +24.5% like-for-like and at constant FX All countries growing organically in FY 2017 Headcount (31 Dec) Share of 2017 group revenue 39% 9

10 2017 Fleet capex Capex sustained to address market demand Quarterly Gross Fleet Capex ( m) FY 2017 Gross fleet capex of 400m (vs. 198 in 2016) FY 2017 fleet disposal GBV: 246m (vs. 171m in 2016) Fleet gross book value: +5% Q1 Q2 Q3 Q4 10

11 Financial Results Patrick BOURMAUD Q4 & FY 2017 Financial Results

12 Q P&L Improvement of EBITDA profitability Q Q Q4-17 / Q4-16 Var. L-f-L (b) var Revenue 242m 368m +52% +11% EBITDA 85m 135m +58% +11% EBITDA margin 35% 37% +1.4 pt +0.2 pt Adjusted EBIT (a) 48m 73m +52% - Adjusted EBIT (a) margin 20% 20% - - Net Financial Expense (18)m (27)m - - (a) (b) Q EBITA adjusted to reflect the pro-rata temporis impact of the change in depreciation policy Like-for-like means changes for the period indicated compared to the prior comparable period, excluding changes in the scope of consolidation. 12

13 FY 2017 P&L 2017 EBITDA margin at 34% FY 2016 FY / 2016 Var. FY 2017 Proforma (a) Revenue 927m 1368m +48% 1435m EBITDA 305m 464m +52% 479m EBITDA margin 33% 34% +1.0 pt 33% EBIT 161m 226m +40% 225m EBIT margin 17% 16% - 16% Net Financial Expense (88)m (117)m - (118)m (a) Proforma for the acquisitions of Hune, Lavendon, Cramo Equipment Rental Denmark, Nacanco, Swan and the disposal of Gardemann 13

14 EBITDA bridge Growth driven by change in perimeter 31/12/17 EBITDA Bridge at constant perimeter ( m) (19) (16) (2) EBITDA 31/12/16 Gross margin Staff costs Other operating costs Net gains on disposals Change in perimeter EBITDA 31/12/17 14

15 Trade WCR Q4 evolution reflecting usual seasonal pattern Quarterly Trade Working Capital Requirement 9% 8% 10% 11% 9% Q change in perimeter 12% % % 13% ² Dec. 15 March 16 June 16 Sept. 16 Dec. 16 March 17 June 17 Sept. 17 Dec. 17 Trade WCR - m (a) Trade WCR in % of PROFORMA LTM Revenue (right hand scale) Trade WCR = WCR relating to business and income tax (excluding WCR related to fixed assets) 15

16 Cash flow generation Free cash flow impacted by non-recurring items ( m) Q Q FY 2016 FY 2017 EBITDA before capital gains on disposal and other items Proceeds from disposals of fixed assets Gross capital expenditure (71) (92) (231) (433) Other operating expenses (0) (0) (0) (1) Financial income and expense (14) (22) (60) (90) Income tax (11) (3) (20) (18) Change in trade WCR 14 5 (7) (14) Change in WCR relating to fixed assets Recurring Free cash flow (51) Non recurring items (1) (3) 2 (14) (71) Free cash flow (5) (121) FX impact and acquisitions / disposals (1) (53) (0) (839) Dividends, share capital increase / (decrease) (96) 0 (100) (14) HY cost amort and redemption (1) (1) (10) (5) Change in net debt (83) (18) (116) (980) (1) FY 2017 non-recurring items: 24m of deposits on future capex, 24m of WCR increase related to Lavendon take-over, 6m of excess income tax deposit 14m of bridge facility fees and 3m of HY bond partial redemption premium; 8m of advisory cost and taxes on Lavendon take-over less of 8m of income tax FY 2016 non-recurring items : 17m HY bond redemption premium, 5 m of advisory cost on Lavendon less 7m of income tax 16

17 Leverage ratio Slight improvement of proforma leverage ratio 4.6x 4.54x 4.43x 3.7x 3.5x 3.7x /12/ /12/ /12/ /12/ /12/2016 PF 31/12/2017 PF (a) (b) Net Debt ( m) Net debt / EBITDA (a) (b) Net debt and leverage ratio proforma for the acquisition of Hune and Lavendon Leverage ratio proforma for the acquisition of Hune, Lavendon, Cramo Equipment Rental Denmark, Swan and Nacanco and the disposal of Gardemann 17

18 Debt maturity profile as at 31/12/17 No major repayment before 2021 Debt maturity profile (in m) 583 m Bilaterals and financial leases 299 m Senior Secured Notes 250 m Senior Subordinated Notes 300 m Senior Secured Notes 250 m Senior Secured Notes 300 m Senior Secured Notes m Senior Subordinated Notes m Cash and Cash Equivalents 75 m RCF (undrawn) 18

19 Market update & Roadmap Gérard DEPREZ Q4 & FY 2017 Financial Results

20 Construction: continued favorable environment Ireland 14.6% 12.7% 7.9% Norway 6.8% 3.5% 2.5% (a) Middle East 4.0% 5.5% 2.6% 2.7% UK 0.7% 1.9% Netherlands 5.4% 4.9% 3.8% 2.0% Denmark 2.7% 2.8% Belgium Germany 3.7% 2.6% 2.5% 2.3% 0.9% -0.3% France Switzerland Brazil 2.4% 4.8% Portugal 6.0% 5.0% 5.0% Spain 3.6% 2.7% 2.3% 1.6% 2.5% 1.9% Italy -5.6% 4.1% 3.8% 3.7% 1.0% 2.0% 1.8% 2017F 2018F 2019F Source: Euroconstruct, IHS December 2017 (a) Weighted average growth for Bahrain, Oman, Qatar, Saudi Arabia and UAE 20

21 French construction 2018 expected trend in line with Estimate 2018 Forecast +4.7% +4.2% +4.0% +3.3% +2.5% +2.7% +3.0% +2.4% +2.7% +2.1% +0.3% Res & Non Res Civil Engineering Total Construction +1.0% Res & Non Res Civil Engineering Total Construction Note: graphs show the high and low ends of forecast ranges Sources: Euroconstruct, IHS December 2017; French federations of building construction companies and civil works companies 21

22 Roadmap 2018 Organic growth, in line with construction prospects Capex to follow market conditions Finalisation of Lavendon, Hune and Nacanco integration Acquisitions to consolidate market shares 22