Slide 1: H1 2020 results
H1 2020 results Financial analyst meeting, September 9, 2020
Slide 2: Disclaimer
Disclaimer This presentation does not constitute an offer to sell, or a solicitation of an offer to buy TOUAX SCA (“Company”) shares. It may contain forward-looking statements. Such forward-looking statements do not constitute forecasts regarding the Company’s results or any other performance indica
Slide 3: Contents
Contents ► Highlights ► Part 1 - Results ► Part 2 - Market outlook and strategy ► Part 3 - Asset valuation and stock market ► Appendices - Touax’s fundamentals Financial Financialanalyst analystmeeting meeting 3 September September9,9,2020 2020
Slide 4: H1 2020 results: TOUAX returned to profitability
H1 2020 results TOUAX returned to profitability Revenue from activities EBITDA Operating income Net profit (loss) Group share +2% +41% 81,331 79,495 22,581 16,055 +94% 10,815 In thousands of 5,581 2,475 euros -2,534 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 ► Strategic approach
Slide 5: A resilient business model
A resilient business model and long-term contracts Long-life assets Standardized and mobile (30-50 years) equipment Recurrent Balanced risk revenues and management cash flow (ownership versus third party management) Strong competitive Geographi- positions in cally distinct all of its markets activit
Slide 6: COVID-19: Limited impacts to date
COVID-19 Limited impacts to date – the Group continues to monitor the risk ► Impact of Covid-19 in H1 2020: o Freight Railcars: Less demand with the return of some equipment and less handling in Europe. o River Barges: Little impact. Demand primarily linked to weather conditions (harvests/raw materi
Slide 7: Contents
Contents ► Highlights ► Part 1 - Results o Analysis of the income statement o Analysis of the balance sheet and statement of cash flows o Asset management ► Part 2 - Market outlook and strategy ► Part 3 - Asset valuation and stock market ► Appendices - Touax’s fundamentals Financial Financialanalyst
Slide 8: Income statement
Income statement Key numbers In thousands of euros H1-2019 H1-2020 Leasing activity 65,933 64,753 Equipment sales activity 12,724 16,099 Syndication fees and capital gains 838 479 REVENUE FROM ACTIVITIES 79,495 81,331 Cost of equipment sales -8,785 -10,406 Operating expenses -16,478 -14,623 General
Slide 9: Income statement: key points
Income statement Key points ► Revenue from activities: €81.3m (€81m at constant scope and currency), +2.3% o +11.2% leasing revenue on Group-owned equipment o - 11.3% leasing revenue on investor-owned equipment o +26.5% increase in equipment sales to €16.1 million ► Ebitda: €22.6m (+41%) strong impr
Slide 10: Income Statement: EBITDA
Income Statement EBITDA In millions of euros H1-2020 H1-2019 EBITDAR EBITDA EBITDA (before Distributions (after (after CHANGE distributions to to investors distributions to distributions to 2020-2019 investors) investors) investors) Freight railcars 17.4 -3.5 13.9 10.3 3.6 River barges 1.9 1.9 1.4 0
Slide 11: Performance analysis - Freight railcars
Performance analysis - Freight railcars Revenue from activities and EBITDA Key points In millions of euros 32.1 ► Leasing revenue: +6.4% 28.4 ► The rise in leasing prices offset a slight fall in utilization rates to 85.6% (average H1 2020) ► Syndication margins increased, notably with sales to inves
Slide 12: A tangible asset base - Freight railcars
A tangible asset base - Freight railcars Number of freight railcars (platform equivalent) A high quality fleet 11,078 10,950 Dec. 2019 June 2020 Average age of the fleet 20.8 years 21.2 years Average utilization rate 88.7% 85.6% 9,574 9,446 Average leasing period 2.8 years 3.6 years 12 Economic life
Slide 13: Performance analysis - River barges
Performance analysis - River barges Revenue from activities and EBITDA Key points In millions of euros 5.8 ► Revenue from activities: -14.3% ► A slight decrease in leasing revenue (-4%) 4.9 despite a utilization rate of 93.5% (average H1 2020) ► A decrease in ancillary services due to a reduction in
Slide 14: A tangible asset base - River barges
A tangible asset base - River barges 97 river barges 51% in Europe and 39% in South America Dec. 2019 June 2020 Average age of the fleet 13.6 years 14.1 years Average utilization rate 90.5% 93.5% Average leasing period 5.8 years 5.8 years 14 Economic lifespan 30 to 50 years Depreciation 30 years Fin
Slide 15: Performance analysis - Containers
Performance analysis - Containers Revenue from activities and EBITDA Key points In millions of euros ► A 79% increase in revenue from leasing of directly- 41.1 owned equipment to €5.2m versus €2.9m in H1 2019, 39.6 attributable to the strategy to increase the share of directly-owned equipment. ► A d
Slide 16: A tangible asset base - Containers
A tangible asset base - Containers Number of containers (TEU) A high quality fleet (standard dry 20 and 40-foot containers) 434,816 403,437 Dec. June 2019 2020 Average age of the fleet 10.1 10.3 years years Average utilization rate 97.1% 95.6% Average leasing period 6.6 years 6.7 years 16 % of leasi
Slide 17: Contents
Contents ► Highlights ► Part 1 - Results o Analysis of the income statement o Analysis of the balance sheet and statement of cash flows o Asset management ► Part 2 - Market outlook and strategy ► Part 3 - Asset valuation and stock market ► Appendices - Touax’s fundamentals Financial Financialanalyst
Slide 18: Balance Sheet
Balance Sheet Comparative summary balance sheet In millions of euros Assets Liabilities 447 458 447 458 Group 123 124 shareholders’ equity* Capitalized equipment 297 320 LT financial debt 115 116 18 Provisions and lease liabilities*** 14 15 Other non- current 28 28 assets** 195 203 Current assets 83
Slide 19: Balance sheet: key points
Balance sheet Key points ► Capitalized equipment: €320m, i.e. a €23m increase in the directly-owned fleet ► Other non-current assets: goodwill (€5.1m), utilization rights IFRS 16 of €15.3m of which €13m relating to barges ► Current assets (excluding cash and cash equivalents) €73m vs. €83m • Invento
Slide 20: Balance Sheet: Economic balance sheet
Balance Sheet Economic balance sheet In millions of euros Assets* Liabilities 369 383 369 383 Group 123 124 shareholders’ equity Non-current assets and inventories 20 Net 199 208 debt Working capital 47 51 requirement 12/31/2019 06/30/2020 12/31/2019 06/30/2020 * Of which goodwill €5 million ► Net d
Slide 21: Debt – 64% of debt is non-recourse debt
Balance sheet Debt – 64% of debt is non-recourse debt From €245m in gross debt to €208m in net debt Breakdown of sources of funding In millions of euros 245 11% 156 17% 2% 89 37 208 21 69% Gross debt Cash and Net debt Debt Capital Market cash Overdraft & spot Recourse debt equivalents Asset backed f
Slide 22: Debt – Asset refinancing programs underway
Balance sheet Debt – Asset refinancing programs underway Debt maturity Key points In millions of euros ► Asset refinancing programs underway 125 ► Borrowings due to mature in the first half of the year were extended: ► Rail: SRFRL (SPV) €40.6m extension until December 2020 – refinancing underway 110
Slide 23: Credit profile
Credit profile All contractual ratios complied with at the end of June 2020 Net gearing Loan-to-value In millions of euros In millions of euros 605 0.60 434 441 452 337 392 365 0.54 0.54 0.54 2,15 23 208 0.52 239 245 196 199 211 225 181 1.68 1.62 1,51 1,32 2016 2017 2018 2019 H1 2020 2016 2017 2018
Slide 24: Statement of cash flows
Statement of cash flows In millions of euros H1-2019 H1-2020 Operating flows excluding operating WCR 13.5 22.0 Operating WCR (excluding inventories) 14.3 6.4 Net purchases of equipment and change in -23.7 -27.8 inventories Operating flows 4.1 0.6 Investment flows 0.6 -0.6 Financing flows 24 25.3 -4.
Slide 25: Contents
Contents ► Highlights ► Part 1 - Results o Analysis of the income statement o Analysis of the balance sheet and statement of cash flows o Asset management ► Part 2 - Market outlook and strategy ► Part 3 - Asset valuation and stock market ► Appendices - Touax’s fundamentals Financial Financialanalyst
Slide 26: Asset management model
Asset management model Syndication to enable fleet expansion and generate additional income without increasing gearing levels Assets (historical gross value) Main characteristics 609 82 ► Assets organized in portfolios and syndicated to 433 investors ► Managed assets are owned by third-party qualifi
Slide 27: Asset management model: management agreement
Asset management model Syndication to enable fleet expansion and generate additional income without increasing gearing levels Recurring asset management fees Asset Initial syndication Second-hand sales management Management fee Syndication fee Marketing + incentive fee on targeted returns fee on inv
Slide 28: Assets under management
Assets under management Breakdown of total managed assets by year (in line with IFRS 5) Breakdown of total assets under management Investor profiles and strategies In millions of euros ► €665m managed for third parties. 1,181 1,137 ► Investors with diverse profiles ► family offices, financial compan
Slide 29: Asset management: strategy and performance analysis
Asset management Strategy and performance analysis ► Investment through funds: o Touax is the exclusive operating partner of two sub-funds of a regulated Luxembourg alternative investment fund (Real Asset Income Fund S.C.A. SICAV-SIF) managed by Quamvest (AIF manager and risk management agent). Soci
Slide 30: Contents
Contents ► Highlights ► Part 1 - Results ► Part 2 - Market outlook and strategy ► Part 3 - Asset valuation and stock market ► Appendices - Touax’s fundamentals Financial Financialanalyst analystmeeting meeting 30 September September9,9,2020 2020
Slide 31: Key points after the reporting period
Key points after the reporting period Signature of an agreement on a capital increase by Touax Rail Limited – August 2020 ► To speed up the development of its long-term freight railcar leasing activities in Europe and Asia ► Amount of the operation: €81.9 million with DIF Capital Partners; one of th
Slide 32: Freight railcars: €50bn in circulation in Europe
Freight railcars: €50bn in circulation in Europe Medium-term outlook: growth in total assets managed: 15,000 railcars, including 12,000 in Europe and 3,000 in Asia Market Touax’s ambitions Europe Europe ► After growth of 1.5% in 2019, the market is expected to ► Very low level of default by clients
Slide 33: River barges: €15bn in Europe and the Americas
River barges: €15bn in Europe and the Americas Medium-term outlook: Selective investment in the Seine, the Rhine and the Mississippi Market Touax’s ambitions Decorrelation of river transportation within the Covid-19 Benefits of the Covid-19 stimulus plan for river transport via construction and the
Slide 34: Containers: €80bn worldwide
Containers: €80bn worldwide Medium-term outlook: gradually increase the share of directly-owned containers Market Touax’s ambitions Improvement in profitability expected: ► After growth in the container trading business of 1.8% in 2019, a decline of 5.5% is currently forecast for 2020 followed by a
Slide 35: Operational strategy to drive performance and profitability
H1 2020 results Operational strategy to drive performance and profitability Sustainable transportation leasing services: Sustainable transportation leasing services: Growth drivers Improvement in margins Freight railcars ► Organic growth with investments in Europe and Asia ► Ongoing improvement plan
Slide 36: Structural prospects
Structural prospects In an economic environment that remains uncertain in the short term: ► Resilience of TOUAX’s business model ► Slowdown of logistical chains, transfer of routes to rail and need for storage Structurally, ► Strong support among consumers and public Touax is well placed to: authori
Slide 37: Contents
Contents ► Highlights ► Part 1 - Results ► Part 2 - Market outlook and strategy ► Part 3 - Asset valuation and stock market ► Appendices - Touax’s fundamentals Financial Financialanalyst analystmeeting meeting 37 September September9,9,2020 2020
Slide 38: TOUAX and the Stock Market
TOUAX and the Stock Market Share data 2019 06/2020 Number of shares (in thousands) 7,011 7,011 Market capitalization (€m) 37.16 34.92 Consolidated shareholders’ equity (Group share) (€m) 97.76 97.19 Price-to-book ratio (excluding hybrid capital) 0.78 0.74 EPS (€) (0.39) 0.35 Highest price (€) 6.48 5
Slide 39: Contents
Contents ► Highlights ► Part 1 - Results ► Part 2 - Market outlook and strategy ► Part 3 - Asset valuation and stock market ► Appendices - Touax’s fundamentals Financial Financialanalyst analystmeeting meeting 39 September September9,9,2020 2020
Slide 40: Touax, a global player in the leasing of transportation equipment
Touax, a global player in the leasing of transportation equipment ► One business line: the operational leasing of transportation equipment and associated services, unique experience since 1853, more than €1.1bn of assets under management, 237 employees, a fully international group (99% of revenue ou
Slide 41: TOUAX: Your operational leasing solution for sustainable transportation
TOUAX Your operational leasing solution for sustainable transportation Freight railcars River barges Containers Asset management Market 2 1 1 1 3 position Europe Europe South Am. Intermodal railcars Europe World Activity Activity Activity Operating lease & financial lease solutions Operating lea
Slide 42: A diversified and blue-chip customer base with long-standing relationships
A diversified and blue-chip customer base with long-standing relationships Freight railcars River barges Containers >10 years >10 years >30 years Financial analyst meeting 42 September 9, 2020
Slide 43: Thank you!
Thank you! Financial analyst meeting 43 September 9, 2020