EUROPCAR GROUP. INVESTOR PRESENTATION JUNE 1 st 2016 THE LEADING EUROPEAN CAR RENTAL COMPANY AT THE HEART OF NEW MOBILITY SOLUTIONS

Transcription

1 EUROPCAR GROUP THE LEADING EUROPEAN CAR RENTAL COMPANY AT THE HEART OF NEW MOBILITY SOLUTIONS INVESTOR PRESENTATION JUNE 1 st 2016

2 European #1 with global reach in the growing vehicle rental and mobility solutions markets Clear leader with highly recognized brand Europe s #1 vehicle rental company (a), with 3.0bn (b) of revenues under Europcar brands in 2015 Over 65 years of experience in the attractive and growing vehicle rental and mobility solutions market Strong brand recognition (d) Europe s Leading Car Rental Company 2015, 2014 & 2013 Large and diversified customer base c.5.5 million drivers in 2015 Wide and diversified customer base Successful relaunch of Privilege loyalty program in 2014 #1 market share (2014) (a) 19% 1.5x (e) 13% High density network Well balanced across 9 Corporate countries with 1,654 stations operated directly or by agents in 2015 Overall, c.3,600 locations in over 140 countries (including stations operated by agents and franchisees) in 2015 yoy growth 1 2 Strong performance +8.2% +17.8% +90bps Flexible and low-risk fleet A diversified, flexible and large fleet of c.205,000 vehicles in Europcar Corporate countries in 2015 (c) c.92% of 2015 fleet purchased with fixed pre-agreed buy-back commitments FY 2015A ( m) 2,142 (f) Revenue % Adj. Corp. EBITDA Margin (a) 2014 market shares based on KPMG study on the basis of the mid-point of estimated market shares and, based on company revenues (excluding franchisees) (b) Based on 2.1bn total Europcar revenue reported, adjusted for 0.9bn revenue generated by Europcar franchisees including InterRent with royalties received deducted of ( 0.04)bn (c) 2015 average fleet of Europcar (d) Based on world and national awards recently received by Europcar, as well as active sponsorship and co-marketing campaigns promoted by Europcar (e) Before impact of Avis Budget group acquisition of Maggiore Group (independent rental operator in Italy) in March 2015 (f) Including 53m of royalties and fees from franchisees 2

3 Business highlights Recent initiatives and achievements Operating performance and financial update Our success and our commitments Appendix 3

4 Europcar s exciting journey of sustainable profitable growth through Fast lane program... Fast Lane objectives Grow our top line Differentiate our offer Improve our cost structure Optimise our resource allocation Increase our effectiveness Invest for future growth Fast Lane strategy for next phase Reinforce Europcar position as a leader to allow sustainable growth Pursue operational excellence 2017 midterm guidance Adjusted Corporate EBITDA margin above 13% % % % 4.7% 6.1% FY-11 FY-12 FY-13 FY-14 LTM Mar-16 Adj.Corp.EBITDA ( m) Adj.Corp.EBITDA LTM margin CONTINUOUS INCREASE IN ADJUSTED CORPORATE EBITDA AND PROFITABILITY 4

5 to be further supported by the acceleration of Europcar s acquisition model Our philosophy Key Pillars Bolt-on opportunities Bolt-on opportunities Priority focus on value-added acquisitions Targeting offering, customer base and geographical expansion Strict financial criteria aiming at quick pay-back, mainly for boltons and franchisees, New mobility solutions opportunities being assessed based on their strategic value Large identified pipeline of small to mid-size opportunities Significant Financial headroom thanks to IPO and Cash Generation Focus on customer base / offering / geographical expansion Strong identified pipelines Significant synergies potential (integration, shared support functions ) Franchisee opportunities Unique opportunities for increasing network density and geographical expansion Intimate knowledge of potential targets Identified synergies and quick wins with limited implementation costs/time Companies and solutions from new mobilities sector Enhance Europcar penetration in new mobility business models while reinforcing Europcar Lab and accelerate its development Focus on solutions which may benefit from unique Europcar features (network density, fleet scale management, financing know-how ) to favour quick development / accelerated go to market Special emphasis on solutions potentially benefitting our existing customer base and therefore offering strong synergy / complementarity potential in the mid term 5

6 Europcar s Key Strengths 1 Market growth supported by positive structural trends in car rental and mobility solutions 2 Established leadership further supported by franchisees and partnerships 3 Diversified and low-risk business model focusing on profitability 4 Successful ongoing implementation of second phase of Fast Lane transformation program to continue delivering profitable growth 5 Lower risk, better balanced business benefitting from higher profitable growth potential 6 Experienced management team and proven track record 6

7 Europcar s Key Strengths Year-on-year evolution Market growth supported by positive structural trends in car rental and mobility solutions 3.3% (6.5)% Car rental market growth Car rental market growth in core Europcar Corporate countries in Europe (a) 4.2% 4.0% 3.6% 2.6% 2.4% 2.4% 2.5% F 2015F 2016F 2017F Car Rental market size (# of rental days) International passenger arrivals Real GDP (a) Based on France, Germany, UK, Italy, Spain Source: Euromonitor for international passenger arrivals, IMF for Real GDP, KPMG analysis for car rental market size Changing social habits Established leadership further supported by franchisees and partnerships 19% Unrivalled leader (#1 market share) 2014 (b) > 1.5x (c) 13% 12% 12% 11% (b) Market shares based on KPMG Study, on the basis of the mid-point of estimated market shares, based on company revenues excluding franchisees (c) Before impact of Avis Budget group acquisition of Maggiore Group in March 2015 Europcar s global network (end 2015) Sharing economy Green consciousness Urban congestion & policies Behavoiral shift from car-ownership to car-usership with a sharp increase in the % of people ready to forgo owning a car and use car-sharing instead in Europe (d) (d) From 10% in 2010 to 34% 2012, based on average contribution rates for France, Germany, UK, Spain and Italy, from Cetelem observatory 2010 and 2012 reports based on a survey of 3,600 and 6,000 individuals respectively Overall more than 140 countries Key partnerships in North America c.30 GSAs Corporate countries Partnerships International franchise General Sales Agents 7

8 Europcar s Key Strengths: Diversified and Low Risk Business Model 25% Southern Europe Australia- New-Zealand Belgium 7% 3% Portugal 5% Spain 10% Italy 10% France 17% (a) Rental income excluding franchises Geographical footprint (a) 2015 revenue breakdown Network (b) Germany 26% UK 22% Average fleet ( 000 units) 156 High fleet utilisation rate Quarterly revenues ( m) vs. fleet utilisation rate (in %) % 77% % % 74% 76% % % 73% By # of Stations Airport 16% By Revenue Airport 42% Off-airport 84% Off-airport 58% (b) 2015 figures based on the percentage of the number of directly- and agent-operated stations and of the Group s rental revenues in Corporate Countries (excluding fees received from franchises) between stations located at airports and other locations Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Quarterly revenues ( m) Fleet utilization (%) 92% of the Europcar 2015 fleet purchased with fixed buy-back commitments pre-arranged 8

9 Europcar s Key Strengths: Integrated Approach focusing on Sustained Profitable Growth Volume Growth Investments for Future Growth Sustained Profitable Growth Financial Utilization Rate Optimizatio n of Cost Structure RPD 9

10 Europcar s Key Strengths: Lower risk, better balanced business and higher growth potential Clear #1 position in European car rental (14A market share) (a) 1 19% 13% 100% car rental 100% car rental 8% 51% De-risked fleet % non-buyback fleet 90% 70% 50% 30% 10% 90% 70% 50% 30% 10% Balanced and complementary business mix (split of 2015 revenues) By geography Group level By customer By location (c) (b) (d) 25% Southern Europe Belgium 3% Portugal 5% Spain 10% Italy 10% France 17% Australia New Zealand 7% Germany 26% UK 22% 44% 56% Business 42% 58% Airport Leisure Off-airport International 30% 40% 60% Business Americas 70% 70% 30% Airport Leisure Off-airport Adj. Corporate EBITDA LTM evolution Year-on-year evolution 11.5% 10.9% 11.9% 11.2% 12.3% 11.7% 11.7% 10.3% 10.5% 10.7% 10.6% 11.6% 11.4% 10.6% Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Europcar Avis Group Avis International Source: Avis Budget Investment presentation May 2016 and quarterly financial results (a) Market shares based on KPMG Study, on the basis of the mid-point of estimated market shares, based on company revenues excluding franchisees (b) Based on 2015 rental revenue for 9 Corporate countries alone for Europcar (c) Based on 2015 rental income excluding franchisees for Europcar (d) 2015 figures based on the percentage of the number of directly- and agent-operated stations and of the Group s rental revenues in Corporate Countries (excluding fees received from franchises) between stations located at airports and other locations for Europcar 9.7% 10

11 Europcar s Key Strengths: Successful ongoing implementation of second phase of Fast Lane transformation program From well engaged key pillars continuing to deliver 1 Commercial Strategy FOSTER SEGMENTS AND BRANDS FOOTPRINT 2 Shared Service Center Logic EFFICIENCY BENEFITS ON TRACK 3 Network Optimization IMPROVING COVERAGE AND EFFICIENCY GAINS 4 To new programs to sustain and enhance long term growth Customer Journey/Experience COMPREHENSIVE PROGRAM LAUNCHED IN m+ investments over included in guidance 5 IT / Digitalization INCREASED SUPPORT TO FAST LANE INITIATIVES AS PLANNED with strong focus on full digital journey 11

12 Europcar s Key Strengths: Secured and Optimized financing structure Corporate Net Debt IN Balance Sheet million Pricing Maturity March 31, 2016 High Yield Senior Notes 5.75% Senior Revolving Facility ( 350m) E+250bps FCT Junior Notes, accrued interest not yet due, capitalized financing costs and other Gross Corporate debt Short-term Investments and Cash in operating and holding entities CORPORATE NET DEBT Only one Corporate bond for 475m (June 2022) with 27m annual interest. On June 1, 2016 we tap this bond for an incremental amount of 125 M with a yield of 4.88% (improvement of 100bp) Very low leverage at 1x Rating: S&P B+, Moody s B1 IN Balance Sheet OFF BS Fleet net debt fully Asset-Back with vehicules million Pricing Maturity March 31, 2016 High Yield EC Finance Notes 5.125% Senior asset revolving facility ( 1.1bn SARF) E+170bps FCT Junior Notes, accrued interest, financing capitalized costs and other UK, Australia and other fleet financing facilities 161 various 409 Gross financial fleet debt 1,504 Cash held in fleet financing entities and Short-term fleet investments Fleet net debt in Balance sheet Debt equivalent of fleet operating leases - OFF BS ,386 1,389 Successful refinancing from July 2014 to June 2015 with improved terms on all IN BS key debt lines SARF single A rated Secured interest costs thanks to swap up to 1.6 bn maturing up to 2019 Still room for improvement for OFF BS lines as a result of better performances and upgraded rating in July 2015 TOTAL FLEET NET DEBT (incl. op leases) 2,775 12

13 Europcar s Key Strengths: Experienced management team and proven track record MANAGEMENT BOARD Philippe GERMOND Chairman of the Management Board Appointed Chairman of the management board since March 2015 Joined the group in 2014 as CEO Caroline Parot CEO Finance Appointed member of the management board since March 2015 Joined the group in 2011 Clear leadership and vision Knowledgeable and passionate team International and local teams with strong complementarity Successfully led the transformation of the company through Fast Lane Ken Mccall Deputy CEO in charge of operations Appointed member of the management board since March 2015 Joined the group in 2010 Fabrizio Ruggiero Head of Mobility Appointed member of the management board since March 2015 Joined the group in 2011 Strengthened corporate governance Supported by a diversified and experienced Supervisory Board 13

14 Business highlights Recent initiatives and achievements Operating performance and financial update Our success and our commitments Appendix 14

15 Recent Initiatives and Achievements ONGOING IMPLEMENTATION OF FAST LANE PHASE Successful Deployment of InterRent Launch of our promising Project Customer 360 INCREMENTAL VALUE CREATION 3 4 Europcar Lab delivering first achievements with more to come Ambitious external growth plan delivering significant synergies 15

16 1 INTERRENT DEPLOYMENT 1. InterRent Strategy Concentrate on locations with highest market potential Capitalize on volume strategy / high utilization Continue to optimize dedicated costs while leveraging our back office know how Transform IR counters to dedicated structures as soon as critical mass is reached 2. Investments to accelerate development New station openings and Recent launch in Germany 87 stations in corporate countries and 64 stations in franchisee countries at end of March 2016 Online marketing and IT investment notably to sustain direct channel and improve ancillary sales Q1 Rental Revenues at cc +90.0% +6.9% +77.7% Average RPD Rental day volume 16

17 2 CUSTOMER 360 A COMPREHENSIVE PROGRAM ADDRESSING ALL CUSTOMER TOUCH POINTS A new CRM vision investments of + 10M over Kick off in March 2016 Market Initiatives New web campaigns Loyalty program Gain more customer insights To split the Customer base in «Clusters» based on value and homogeneous behaviors To recognize «star customers» who have the highest value across all countries To identify best prospects and new customers Benefits To refine and personalize communications towards our customers at any touch points To maximize outgoing campaign results and efficiency (ROI, contact channels) To improve process effectiveness and maximizing resource efficiency To get new selling, relational and retention opportunities 17

18 3 EUROPCAR LAB DELIVERING FIRST ACHIEVEMENTS WITH MORE TO COME Our program for the coming months Accelerate the development plan of Car Sharing (B2B and B2C) solutions After Paris and London, Ubeeqo to launch its multimodal platform for B2C in Brussels, Berlin and Hamburg Increasing number of RFI for Ubeeqo B2B solutions among key accounts from Europcar customer base Launch of prototypes / pilots with focus on identified priorities: Lease to share Connected journey - contactless access Partnership with Blablacar for On Way in Italy 18

19 4 AMBITIOUS EXTERNAL GROWTH PLAN: ILLUSTRATIONS OUR TRACK-RECORD DEMONSTRATES OUR ABILITY TO SOURCE AND EXECUTE VALUE-ADDED TRANSACTIONS Locaroise Acquisition in May 2016 (a) Europ Hall Integration # 3 French franchisee 17m revenues generated through 19 locations and an average fleet of 2,200 vehicles; high proportion of SME customers Transaction : Cash out of 9m - estimated ~4x Adjusted Corporate EBITDA pre synergies (b) Significant synergies identified both in terms of revenue and profitability: Optimization of vehicle management and costs through geographical continuity and fleet consolidation Strengthening of operating leverage, particularly through Shared Service Centers Implementation of the Group s Revenues and Capacity Management strategy and tools Integration within Europcar s IT system #2 French franchisee at the time of the acquisition (October 2014) Smooth integration of Europ Hall within Europcar, demonstrating highly value accretive feature of the transaction Significant synergies achieved (Q1 16 vs Q1 15) Achieved savings on fixed costs following the transfer of some functions to Shared Service Center Strong utilization rate enhancement: +c.5 points Significant ancillary sales growth: +c.9% Net Promoter Score sharp enhancement: +16% (a) The finalization of this operation could take place in the coming weeks and is subject to customary closing conditions. (b) Europcar Group estimate, based on 2015 figures 19

20 Business highlights Recent initiatives and achievements Operating performance and financial update Our success and our commitments Appendix 20

21 A FLEXIBLE BUSINESS MODEL WITH STRONG FINANCIAL PERFORMANCE All data in m, except if noted FY 2015 FY 2014 Change Change at constant currency* Revenues 2,142 1, % 5.8% Rental Day Volume (million) % RPD ( ) % -1.2% Average duration (day) % Average Fleet (thousand)** % Per unit fleet costs ( ) % -0.7% Financial utilization rate 76.1% 76.4% -0.3 pt Adjusted Corporate EBITDA % 15.6% Adjusted Corporate EBITDA Margin 11.7% 10.8% +0.9 pt Estimated Net Income Pro Forma*** 128 na Operating Income IFRS **** % Net Income IFRS % Corporate Net Debt Average Total Fleet Net Debt (incl. operating leases) 3,127 2,807 * UK pound and Australian dollar ** Fleet 181.8k as of December 31, 2015 vs k at as of December 31, 2014 *** See definition in Appendix **** Includes non-recurring expenses for 62m in 2015 vs. 116m in

22 STRONG OPERATIONAL LEVERAGE DELIVERING PERFORMANCE IN THE HIGH END OF THE GUIDANCE All data in m FY 2015 FY 2014 Change Change at constant currency Key considerations Revenues organic growth at 4.9% Revenues 2, , % 5.8% Fleet holding costs excluding estimated interest included in operating leases Fleet operating, rental, revenues and insurance-related costs % 8.3% % 3.5% Margin after variable costs % 6.4% Margin Rate after variable costs 43.1% 42.9% +0.2pt Personnel, network, IT and other HQ costs % 5.8% Fleet financing costs % -6.3% Adjusted Corporate EBITDA % 15.6% Adjusted Corporate EBITDA Margin 11.7% 10.8% +0.9pt ALL TIME HIGH ADJUSTED CORPORATE EBITDA AT 251M, WITH MARGIN AT 11.7% Solid improvement of margin after variable cost at 43.1% mainly reflecting: Strong management of the utilization rate in a context of significant increase of the fleet, revenues and upsell dynamic Fleet costs per unit (holding and operating) continue to decline Other operating costs benefiting from strong initiatives notably on insurance Operational leverage delivering: Efficiency gains on the network, control of our semi fixed costs based Investments in Sales & Marketing to sustain the profitable growth Decrease in fleet financing costs following the refinancing initiatives between July 2014 and June /02/

23 2015 WAS A TRANSITION YEAR All data in m FY 2015 FY 2014 Change Adj. Corporate EBITDA % Non-fleet D&A % Other non-recurring operating expenses % Non-fleet financial expenses % Profit Before Tax % Net tax expense Associates Net income % Estimated Pro forma Net Income at 128m (before associates and exceptional items and pro forma the refinancing initiatives)* IFRS 2015 Net Loss Included Net negative impact of some proceedings for approx. 25 m (mainly Q items) Costs associated with the IPO for 11m Reorganization charges linked to Fast lane for 24 million Cost linked to the reshape of the capital structure: Redemption premium of 56m Write off of amortization costs for 27m (non cash) Increase of tax expense mainly related to the operations and to tax audit provision Deployment costs of Car2Go Europe (associates) * See definition and reconciliation in Appendix 23

24 CORPORATE NET DEBT BRIDGE OVER 2015 Corporate net debt / Adjusted Corporate EBITDA 2.7x 0.9x 159 M (223) (448) 235 Net Corporate Debt 2014 Cash Adjusted Corporate EBITDA Non fleet Capex Income tax paid Non recurring expenses Profit and loss interest on Corporate debt Other investing activities Increase in capital Transaction, premium, discount costs writte offs Redemption price Amortisation of transaction, premium, discount costs Other Net Corporate Debt 2015 Corporate operating free cash flow (before change in rental fleet) 86M 24

25 SOUND Q KEY METRICS All data in m, except if noted Q Q Change * UK pound and Australian dollar ** Total revenues excluding petrol income increase 2.8% at constant currency *** Fleet k as of March 31, 2016 vs k at as of March 31, 2015 Change at constant currency* Revenues** % 2.3% Rental Revenues % 3.0% Rental Day Volume (million) % Consolidated RPD ( ) % -0.4% Average duration (day) % Average Fleet (thousand)*** % Per unit fleet costs per month ( ) % -1.4% Financial utilization rate 73.2% 73.6% -0.4pt Adjusted Corporate EBITDA % 21.3% Adjusted Corporate EBITDA Margin -1.1% -0.9% Last Twelve Months Adjusted Corporate EBITDA % LTM Adjusted Corporate EBITDA Margin 11.6% 10.9% Operating Income IFRS 7-29 Net Income IFRS Corporate Net Debt at end of the period 247 Average Total Fleet Net Debt (incl. operating leases) 2,734 2,614 25

26 Q RENTAL REVENUE ORGANIC GROWTH AT 3.0% All data in m Q Q Change Q1 Rental Revenue at cc Change at constant currency Rental revenues % 3.0% Other revenue associated with car rental % -11.1% Franchising business % 1.5% Revenues % 2.3% Key considerations Strong dynamics in leisure segment Supported by Europcar brand and by the accelerated deployment of the InterRent brand, Southern Europe and Australia NZ particularly strong Softer trends in corporate SME development offsetting key accounts soft demand in some countries In addition, car replacement business declining in volume notably in the UK +3.0% +3.5% -0.4% Average RPD Rental day volume +77.7% +6.9% +1.3% +0.7% Average RPD Rental day volume Europcar InterRent Belgium suffering from terrorists attacks RPD slightly declining due to mix and geography effects : Strong growth of InterRent brand Europcar brand up thanks to balanced growth and ancillary sales while duration is increasing Realignment of van strategy with focus on lower categories and longer duration Other revenue impacted by Petrol income decrease, with limited impact on margins 05/09/

27 Corporate net debt bridge over Q Corporate net debt / Adjusted Corporate EBITDA 0.9x 1.0x m (2) (5) Net Corporate Debt Dec end 2015 Cash Adjusted Corporate EBITDA Non fleet Capex Income tax paid Non recurring expenses Accrued interest on corporate net debt Other including non cash items Net Corporate Debt March end 2016 Corporate operating free cash flow (before change in rental fleet) 0m vs (35)m in Q Source: Company 27 27

28 Business highlights Recent initiatives and achievements Operating performance and financial update Our success and our commitments Appendix 28

29 OUR SUCCESS AND OUR COMMITMENTS 1 Achieved upgraded 2015 guidance and on track to deliver 2016 guidance 2016 guidance in line with IPO commitments Organic growth of 3% to 5% (a) leveraging our network capillarity and our well balanced geographical coverage Main actions: Van & Trucks, SME, Direct to Brand, Customer Journey Adjusted Corporate EBITDA above 275m Including investment in IT, Customer Journey, and new mobility solutions From 2016, Dividend pay out ratio at least 30% of Net Income (b) To be paid from 2017, based on prior year net income 2 Continuous delivering of organic profitable growth as committed at IPO thanks to Fast Lane 2017 objectives confirmed Revenues organic growth 3% to 5% Adjusted Corporate EBITDA margin above 13% Natural organic deleveraging: organic leverage ratio below 1x at end Ongoing roll out of our ambitious external growth plan to accelerate value creation Europ Hall (2014) Locaroise (2016) Ubeeqo (2014) E-car Club (2015) Solid pipeline of identified targets expected to deliver (a) (b) Excluding petrol income, at constant currency and scope Based on prior year net income 29

30 EUROPCAR, A LOW RISK BUSINESS MODEL WITH SIGNIFICANT VALUE CREATION POTENTIAL ORGANIC DEVELOPMENT FOR THE MEDIUM TERM Unrivalled leader in an attractive and growing market Successful Fast Lane transformation Significant Financial Headroom thanks to IPO and Cash Generation ACCELERATION POTENTIAL Enhance international footprint Develop new mobility solutions Efficient buy-back model Seize bolt-on/ franchisee opportunities 30

31 Business highlights Recent initiatives and achievements Operating performance and financial update Our success and our commitments Appendix 31

32 FY 2015 OPERATIONAL CASH FLOW IMPACTED BY ONE OFF ITEMS Management Cash Flow part 1 All data in m FY 2015 FY 2014 Adjusted Corporate EBITDA Non-recurring expenses Non-fleet capital expenditure (net of proceeds from disposals) Changes in non-fleet working capital Change in provisions and employee benefits 1 11 Income tax paid Corporate operating free cash flow Cash interest paid on corporate High Yield bonds Cash flow before change in fleet asset base, financing and other investing activities Key considerations Adjusted Corporate EBITDA up 38 m Non recurring expenses cash out of 73m linked to a 12.5m litigation settlement, continuing Fast Lane reorganization plans and bonus payment following the success of Fast Lane first tranche 2015 change in non fleet working capital reflecting the growth in activity and impacted by tax payment related to previous years that should be paid back in 2016 Increase in income tax cash out linked to better performance 2015 cash interest reflecting the benefit of the refinancing occurred at the time of the IPO end of June

33 FY 2015 CASH FLOW IMPACTED BY IPO AND CAPITAL STRUCTURE RESHAPING Management Cash Flow part 2 All data in m FY 2015 FY 2014 Cash flow before change in fleet asset base, financing and other investing activities Other investing activities Change in fleet asset base, net of drawings on fleet financing and working capital facilities Capital increase Key considerations Other Investing activities including Car2Go capital increase to support new openings Ubeeqo capital increase leading to 75.7% ownership E-car club acquisition in July 2015 Change in fleet asset base and working capital facilities of 87 m driven by higher level of fleet and by lower drawings on RCF following IPO Change in High Yield Transaction cost cash out and swap impact Net change in cash before FX effect Capital increase: gross proceeds at 475m less fees paid as of Dec 31, 2015 Change is Corporate High Yield notes negative at 308m : repayment of the two former Corporate bonds (i.e. 324m and 400m) issuance of the new Corporate bond for 472m ( 475m at issue price of %) 56m of redemption price 33

34 Q ADJUSTED CORPORATE EBITDA REFLECTING INVESTMENTS IN FUTURE GROWTH All data in m Q Q Change Change at constant currency Revenues % 2.3% Fleet holding costs excluding estimated interest included in operating leases Fleet operating, rental, revenues and insurance-related costs % 0.2% % 4.2% Margin after variable costs % 1.8% Margin Rate after variable costs 37.7% 37.9% -0.2pt Personnel, network, IT and other HQ costs % 3.8% Fleet financing costs % -4.8% Adjusted Corporate EBITDA % 21.3% Adjusted Corporate EBITDA Margin -1.1% -0.9% -0.2pt Key considerations Solid margin after variable cost mainly reflecting: Fleet costs per unit (holding and operating) continue to decrease Other operating costs benefiting from strong initiatives on insurance Operational leverage delivering: Efficiency gains on the network, control of our semi fixed costs based, Enabling Investments in InterRent deployment, IT and the LAB Decrease in fleet financing costs following the refinancing initiatives between July 2014 and June 2015, despite the strong growth in activity 05/09/

35 Q NET RESULT BENEFITING NOTABLY FROM THE REFINANCING All data in m Q Q Change Key considerations Adj. Corporate EBITDA % Non-fleet D&A % Other non-recurring operating income / expenses % Non-fleet financial expenses % Profit Before Tax % Net tax expense Associates Net income % Non recurring operating income / expenses: In 2016, reimbursement of tax payment related to previous years paid at end of 2015 In 2015, net negative impact of certain proceedings and reorganization charges linked to Fast Lane transformation plan roll out Benefit of the reshape of the capital structure following the IPO at end Q Deployment costs of Ubeeqo and Car2Go Europe (associates) 05/09/

36 Q MANAGEMENT CASH FLOW All data in m Q Q Adjusted Corporate EBITDA -5-4 Non-recurring expenses 5-4 Non-fleet capital expenditure (net of proceeds from disposals) -6-6 Changes in non-fleet working capital and provisions 7-16 Income tax paid -1-5 Corporate operating free cash flow 0-35 Cash interest paid on corporate High Yield bonds 0 - Cash flow before change in fleet asset base, financing and other investing activities 0-35 Other investing activities 0 - Change in fleet asset base, net of drawings on fleet financing and working capital facilities Capital increase 0 - Key considerations Adjusted Corporate EBITDA down 1m Non recurring expenses cash linked to the reimbursement of tax payment related to previous years occurred at end of change in non fleet working capital and provisions reflecting the improvement in the management of the processes Change in fleet asset base and working capital facilities of 30 m driven by timing effect in a context of growing fleet Net change in cash before FX effect

37 P&L under IFRS and reconciliation with Adjusted Corporate EBITDA P&L IFRS Full year Quarterly in m Q Q Total revenue 1,979 2, Fleet holding costs (incl. lease related depreciation but excl. lease interests) (443) (492) (106) (105) Fleet operating rental & revenue related costs (686) (727) (151) (155) Total personnel costs (318) (347) (81) (83) Network and HQ overhead cost excl. Depre. & amort. (199) (219) (53) (54) Non-fleet depreciation and amortization (32) (33) (8) (8) Other income (0) Operating expenses before non-recurring items (1,228) (1,312) (293) (300) Interest expense included in fleet op leases rents (54) (55) (12) (11) Other operating revenues and expenses (116) (62) (33) 5 Operating income (29) 7 Financial results (IFRS) (233) (228) (43) (27) Result before tax (95) (6) (73) (21) Income tax credit / (expense) (11) (38) 5 4 Share of profit in associates (7) (12) (2) (3) Net result (112) (56) (70) (20) Operating income to Adj. Corp. EBITDA reconciliation Full year Quarterly Q Q Operating income (29) 7 Interest expense included in fleet op. lease rents Non-recurring expenses (5) Adjusted Operating Income Net fleet financing costs (73) (66) (15) (15) Interest expense included in fleet op. lease rents (54) (55) (12) (11) Non-fleet depreciation & amortization Adjusted Corporate EBITDA (4) (5) 37

38 2015 Pro Forma Net Income Estimated Pro Forma Net Income corresponds to IFRS Net income excluding exceptional items (operational and financial) before associates, and adjusting financial expenses pro-forma for the full year effect of the repayment of the 324m bond, refinancing of the 400m bond through the issuance of the 475m senior for a coupon of 5.75%, and refinancing of the RCF and SARF facility at improved terms All data in m FY 2015 IFRS Net Loss -56 Pro Forma on Interest on Corporate High Yield bonds 26 Pro forma Transaction cost amortization 7 Reversal of Corporate High Yield Bonds redemption premium 56 Reversal of the write off associated with Corporate High Yield Bonds reimbursment 27 Reversal of exceptional income / expenses 56 Reversal of Share of profit/(loss) of associates 12 Estimated Pro Forma Net Income 128 Reversal of exceptional income / expenses mainly corresponds to: Net negative impact of some proceedings Costs associated with the IPO Provision accrued in connection with tax audit 38

39 Cash flows under IFRS All data in m, as of FY Dec-31, Q and Q Q Profit/(loss) before tax (95) (6) (73) (21) D&A, Impairment charge on goodwill, Changes in provisions and employee benefits, Profit/(loss) on disposal of assets (11) Financing costs (a) Cash generated from operations (5) (9) Changes in rental fleet (92) (233) (123) (46) Changes in fleet working capital (74) Changes in non-fleet working capital 50 (57) 1 30 Income taxes received/paid (31) (40) (5) (1) Net interest paid (167) (137) (20) (20) Net cash generated from (used by) operating activities (90) (166) Net cash used by investing activities (b) (77) (55) (6) (6) Net cash generated from (used by) financing activities (c) (74) (109) Net increase/(decrease) in cash and cash equivalents after effect of foreign exchange differences (63) (30) (a) Includes net interest costs of (127)m, redemption premium of 56m, amortization of transaction costs of 42m and other non cash items of 1m in FY 2015 and 23m of net interest costs in Q (b) Includes (29)m of Acquisition of intangible assets and property, plant and equipment, 5m of proceeds from disposals, (8)m of acquisition of financial assets and (24)m of acquisition of subsidiaries in FY15 and (7)m of Acquisition of intangible assets and property, plant and equipment, 0.6m of proceeds from disposals, 0.3m of disposals of financial assets (c) Includes 448m of capital increase, 471m of issuance of bonds, (780)m of redemption of bonds, 123m of change in other borrowings and (20)m of payment of transaction costs in FY15 and (109)m of change in other borrowings in Q

40 IFRS Balance sheet at March 2016 Non-audited As at 31 March 2016 (in million) 2016 Assets Property, plant & equipment 84 Intangible assets 1,167 Other investments (non-current) 73 Deferred tax assets 61 Total non-current assets 1,386 Inventories 15 Other investments 40 Loans - Income tax receivable 38 Rental Fleet & Receivables 2,290 Trade and other receivables 350 Cash and cash equivalents 134 Restricted cash 81 Total current assets 2,947 As at 31 March 2016 (in million) 2016 Equities and Liabilities Total equity 514 Liabilities Borrowings (non-current) 803 Derivatives (non-current) 61 Employee benefits (non-current) 128 Provisions (non-current) 24 Other non-current liabilities 0 Deferred tax liabilities 130 Total non-current liabilities 1,148 Borrowings (current) 1,133 Income tax payable 26 Fleet payables 835 Trade and other liabilities 449 Employee benefits (current) 3 Provisions current 225 Total current liabilities 2,671 Total liabilities 3,819 Total assets 4,333 Total equity and liabilities 4,333 40

41 Glossary (1/2) Business customers: include corporations, small and medium-sized businesses, government agencies and other organizations which rent cars as well as entities renting cars to provide vehicle replacement services Corporate countries: countries where Europcar owns and operates its own network, where corporate-operated stations are located (Germany, UK, France, Italy, Spain, Portugal, Belgium and Australia/New Zealand) Adjusted Corporate EBITDA: EBITDA less fleet depreciation, fleet operating lease rents and fleet financing costs Fleet: all vehicles operated by the car rental company available or not for rent which includes cars and vans Fleet Cost per Unit per month: defined as total monthly fleet costs (including fleet holding and fleet operating costs but excluding financial interests) divided by the average fleet over the period. Fleet holding costs: include (A) Costs related to rental fleet agreements, which consist of (i) depreciation expense relating both to vehicles purchased with manufacturer or dealer buy-back commitments and to at risk vehicles (based, with respect to vehicles purchased with a buy-back commitment, on monthly depreciation rates negotiated under the buy-back agreements, net of volume rebates, and with respect to at risk vehicles, to the difference between the acquisition cost of the vehicles and the estimated residual value, the value of at risk vehicles being adjusted monthly on the basis of the vehicles market values) and (ii) charges under operating leases; (B) Acquisition and sale-related costs, which include principally (i) the cost of vehicle accessories; (ii) costs relating to the conditioning of new vehicles; and (iii) costs relating to disposal of used vehicles and of vehicles purchased in connection with buy-back programs; and (C) Taxes on vehicles. Fleet operating, rental and revenue related costs: include (A) Fleet operating costs, which include repairs and maintenance costs and costs incurred for damaged and stolen cars, as well as the costs of reconditioning vehicles for repurchase by the car manufacturer or dealer; (B) insurance (the costs of car insurance covering civil liability and damage to vehicles, as well as self-insurance costs); (C) Revenue-related commissions and fees, which include commissions paid to agents, such as personnel costs and station overhead (excluding vehicle fleet), as well as commissions paid to travel agents, brokers and other commercial partners and fees and taxes paid for airport and train station concessions; and (D) Rental related costs, which include the cost of transferring vehicles from one site to another, vehicle washing costs and fuel costs. Fleet financial utilization rate: corresponds to the Number of Rental Days as a percentage of the number of days in the fleet s financial availability period. The fleet s financial availability period corresponds to the period during which the Group holds vehicles. Franchising: arrangement where the franchiser grants the franchisee the right to use its trademark or trade-name as well as certain business systems and processes, to produce and market a good or services according to certain specifications. In exchange, the franchisee usually pays the franchiser an entry fee plus a percentage of sales revenues as royalty 41

42 Glossary (2/2) GDS (Global Distribution System): computerized reservations systems operated by third parties and used by intermediaries such as travel agents and travel operators to make reservations with the Europcar Network GSA (General Sales Agent): general sales representative that promotes and sells the services offered by Europcar in a specific country or region in consideration of a commission GreenWay system: software application, owned by Europcar, offering a comprehensive business solution mainly in the areas of fleet management, e-commerce, reservations and global distribution systems and rental operations Leisure customers: include not only individual travelers booking vacation car rentals but also people renting to meet other personal needs. Loan to value: corresponds to the indebtedness of Securitifleet Holding, the Securitifleet Companies and EC Finance Plc divided by the total value of the net assets on the balance sheets of these companies. Margin after variable costs: corresponds to the total revenues less Fleet holding costs and Fleet operating, rental and revenue related costs Net rates: brokers selling at any price, ie brokers revenue is the gap between Europcar s selling price and their selling price (usually offered to TOs for package, brokers with Keddy and destinations where brokers are more present than Europcar) Operating lease vehicle: agreement by which a vehicle is leased to a car rental company, which pays periodically on a relatively short-term basis; at the end of the operating lease, title does not pass to the car rental company Rental Day Volume: number of vehicles rented over a period of time RCM: Revenue Capacity Management Retail rates: Europcar setting the price and paying a commission to brokers preventing them from selling at a lower price than Europcar s RPD (Revenue Per Day): rental revenue divided by the Rental Day Volume Vehicle replacement: business involving principally the rental of cars to individuals whose rental charges are wholly or partially paid or reimbursed, by insurance companies, vehicle leasing companies and vehicle dealers and other entities offering vehicle replacement services, with whom Europcar has a direct contractual relationship 42

43 Important Legal Disclaimer / Contacts DISCLAIMER The document has been prepared by Europcar (the Company ). Recipients should conduct and will be solely responsible for their own investigations and analysis of the Company. The Company has no obligation to update the document or to correct any inaccuracies herein. None of the Company nor its respective employees or officers, makes any representation or warranty, express or implied, as to the accuracy, relevance and/or completeness of the document or the information, forwardlooking, statement contained herein and the Company shall not incur any liability for the information contained in, or any omissions from, the document. In particular, but without prejudice to the foregoing, no representation or warranty is given as to the achievement or reasonableness of any projections, targets, estimates or forecasts, and nothing in the document is or should be considered as a representation as to the future. Forward-looking statements are based on management's current expectations or beliefs on or about the date of the document and involve risks and uncertainties that could result, but not limited to, in different results from those described in the forward-looking statements and risk described in the documents the Company filed with the Autorité des Marchés Financiers (French securities regulators). The Company does not undertake, nor have any obligation to provide any updates or to revise any forward-looking statements in order to reflect any events or circumstances that may occur or arise after the date of the Presentation. INVESTOR RELATIONS Aurélia Cheval aurelia.cheval@europcar.com Investor Relations investor.relations@europcar.com For all financial or business information, please refer to our IR website at: finance.europcar-group.com 43