Slide 1: 2020 annual results
2020 annual results Financial analyst meeting 26 March 2021
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: 2020 at a glance
2020 at a glance A solid operating and financial performance ► Return to profitability with Group share of net profit reaching +€5.9m in 2020 ► Strong business resilience despite the pandemic, with 80% recurrent leasing revenue ► The Group’s financial structure was strengthened with the arrival of a
Slide 4: Contents
Contents ► A resilient business model ► Good level of business activity in 2020 ► Return to profitability and stronger financial structure ► A confident outlook over the coming years ► Asset valuation and stock market Financial analyst meeting 4 26 March 2021
Slide 5: TOUAX: A global player in the leasing of equipment for sustainable transportation
TOUAX A global player in the leasing of equipment for sustainable transportation ► One business line: the operational leasing of transportation equipment and related services: • A unique business in operation since 1853 • More than €1.1 billion in assets under management, • Almost 250 employees worl
Slide 6: 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 7: A diversified client base
A diversified client base Long-standing privileged client relationships Freight railcars River barges Containers >10 years >10 years >30 years Financial analyst meeting 7 26 March 2021
Slide 8: A resilient business model
A resilient business model based on long-term contracts Standardised and mobile Long-life assets equipment (30-50 years) Recurrent Balanced risk revenues and management cash flow (ownership versus third party management) Strong competitive Geographical positions in ly diversified all of its markets
Slide 9: Contents
Contents ► A resilient business model ► Good level of business activity in 2020 ► Return to profitability and stronger financial structure ► A confident outlook over the coming years ► Asset valuation and stock market Financial analyst meeting 9 26 March 2021
Slide 10: 2020 results
2020 results A sharp increase in EBITDA and positive net profit despite the health crisis Revenue from activities EBITDA Current operating income Net profit (loss) Group share -3% +27% +54% 169,009 163,408 46,821 23,297 5,862 36,898 15,135 In thousands of euros -2,698 2019 2020 2019 2020 2019 2020 2
Slide 11: 2020 highlights
2020 highlights Successful completion of major financial transactions ► In 2020, the financial community showed confidence in Touax on several occasions: o In September: capital increase at Touax Rail (€81.9m) and arrival of DIF Capital Partners, a leading independent global infrastructure fund mana
Slide 12: Contents
Contents ► A resilient business model ► Good level of business activity in 2020 ► Return to profitability and stronger financial structure o Analysis of the income statement o Analysis of the balance sheet and statement of cash flows o Asset management ► A confident outlook over the coming years ► A
Slide 13: Income statement
Income statement Key figures In thousands of euros 2019 2020 Leasing activity 134,845 120,625 Equipment sales activity 32,242 40,481 Syndication fees and capital gains 1,922 2,302 REVENUE FROM ACTIVITIES 169,009 163,408 Cost of equipment sales -22,644 -27,169 Operating expenses -33,873 -27,211 Gener
Slide 14: Income Statement: key points
Income Statement Key points ► Revenue from activities: €163.4m (-3%) (€166m at constant scope and currency) o Leasing revenues from owned equipment: €52.3m, +3% o Leasing revenues from investor-owned equipment: €49.8m, -21% attributable to sales of old equipment o Equipment sales: €40.5m, +26% ► EBI
Slide 15: Income Statement: EBITDA
Income Statement EBITDA 26.5 23.1 +15% Change In million of euros 2019 2020 % Freight railcars 23.1 26.5 +15% 11.6 River barges 3.5 5.2 +47% +31% 8.8 Containers 8.8 11.6 +31% 5.2 Other* 1.5 3.5 +138% 3.5 3.5 +47% 1.5 +138% EBITDA 36.9 46.8 +27% 2019 2020 Freight railcars Containers River barges Othe
Slide 16: A tangible asset base: Freight railcars
A tangible asset base Freight railcars A fleet under long-term leases Key points ► Revenue from leasing activities: -2.9 % ► Economic life span: 30 to 50 years This decrease is mainly attributable to the decrease in ► Depreciation: 36 years ancillary services (-€1.4 million) in line with the fall in
Slide 17: A tangible asset base: River barges
A tangible asset base River barges 99 river barges Key points ► Economic life span: 30 to 50 years ► Revenue from activities: stable despite the ► Depreciation: 30 years economic environment at €11.8m ► Average age of the fleet in 2020: 14.3 years ► Average utilisation rate in 2020: 95.1% ► Slight i
Slide 18: A tangible asset base: Containers
A tangible asset base Containers A high quality fleet (20- and 40-foot dry containers) Key points ► Economic lifespan of 15 years (maritime) and 20 years (land) ► Depreciation: 13 years ► A decrease in revenue from activities (-3.5 %) to €78.9m ► Residual value of between $1,000 and $1,400 ► Average
Slide 19: Contents
Contents ► A resilient business model ► Good level of business activity in 2020 ► Return to profitability and stronger financial structure o Analysis of the income statement o Analysis of the balance sheet and statement of cash flows o Asset management ► A confident outlook over the coming years ► A
Slide 20: Balance Sheet
Balance Sheet Comparative summary balance sheet In million of euros Assets Liabilities 474 474 447 447 147 123 Total shareholders’ equity * 308 Capitalised equipment 297 LT financial debt 115 20 14 230 Provisions and leasing liabilities *** 27 Other non-current assets** 28 Current liabilities 195 13
Slide 21: Balance sheet: key points
Balance sheet Key points ► Capitalised equipment: €308m, +€11m vs. 2019 ► Other non-current assets: goodwill (€5.1m), rights-of-use under IFRS 16 for €14.8m, of which €12.7m relating to barges ► Current assets (excluding cash and cash equivalents) €77.2m vs. €82.4m in 2019 • Inventory €34.9m (-€8.7m
Slide 22: Balance Sheet: Economic balance sheet
Balance Sheet Economic balance sheet In million of euros Assets* Liabilities 369 369 369 369 Group 123 shareholders’ 147 equity Non-current assets and inventories 22 Net 199 debt 190 Working 47 32 capital requirement 31/12/2019 31/12/2020 31/12/2019 31/12/2020 * Of which goodwill €5 million ► Net de
Slide 23: Debt – 68% of debt is non-recourse debt
Balance sheet Debt – 68% of debt is non-recourse debt Gross debt of €252m and net debt of €190m Breakdown of financing sources In million of euros 252.1 11% 16% 170.2 23 81.9 62.3 189.8 73% Debt via capital markets Asset-backed financing Corporate and other financing Gross debt Cash and Net debt cas
Slide 24: Debt – Asset refinancing programme successfully completed
Balance sheet Debt – Asset refinancing programme successfully completed Maturity schedule Key points In million of euros 106 ► Refinancing of the Containers division for $75m (option to extend this to $85m) – maturing in November 2022 – carried out in November 2020 • Term loan of $37m • RCF of $38m
Slide 25: Credit profile
Credit profile All contractual ratios complied with at the end of December 2020 Net gearing Loan-to-value In millions million ofofeuros euros In million of euros 605 0.60 469 434 441 337 392 365 0.54 0.54 0.54 2.15 25 196 199 0.52 239 252 181 190 225 211 1.51 1.62 1.32 1.29 2016 2017 2018 2019 2020
Slide 26: Statement of cash flows
Statement of cash flows Significant increase in net cash In million of euros 2019 2020 Operating flows excluding operating WCR 30.9 42.4 Operating WCR (excluding inventories) 4.5 -12.1 Net purchases of equipment and change in -27.9 -31.5 inventories Operating flows 7.5 -1.2 Investment flows 3.0 -0.6
Slide 27: Contents
Contents ► A resilient business model ► Good level of business activity in 2020 ► Return to profitability and stronger financial structure o Analysis of the income statement o Analysis of the balance sheet and statement of cash flows o Asset management ► Market outlook and strategy ► Asset valuation
Slide 28: 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 532 459 147 ► Assets organised in portfolios and syndicated to investors 456 ► Managed assets are owned by third-party qu
Slide 29: Asset management model: agreement over 10 years
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 Syndication fees Management fees Marketing Incentive fee on targeted returns on fee inv
Slide 30: Asset management
Asset management Breakdown of total assets under management by year (in line with IFRS 5) Breakdown of total assets under management Investor profiles and strategies In million of euros 1,181 ► €615m in assets managed on behalf of third 1,079 parties ► Investors with diverse profiles ► institutional
Slide 31: 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). o To
Slide 32: Contents
Contents ► A resilient business model ► Good level of business activity in 2020 ► Return to profitability and stronger financial structure ► A confident outlook over the coming years ► Asset valuation and stock market Financial analyst meeting 32 26 March 2021
Slide 33: Freight railcars: €50bn in circulation in Europe
Freight railcars: €50bn in circulation in Europe Medium-term objective: growth in the entire fleet under management: 15,000 railcars, including 12,000 in Europe and 3,000 in Asia Market Touax’s ambitions Europe Europe ► The market contracted in 2020 following the impact of the ► The strategy around
Slide 34: River barges: €15bn in Europe and the Americas
River barges: €15bn in Europe and the Americas Medium-term objectives: Selective investment Market Touax’s ambitions Decorrelation from river transport due to the Covid crisis Benefits of the stimulus plans of governments for river transport in construction and the ecological transition Europe: ► De
Slide 35: Containers: €80bn worldwide
Containers: €80bn worldwide Medium-term objectives: Investment in owned equipment and trading Market Touax’s ambitions ► After a decrease of 1.1% in container trading in 2020 Improvement in profitability expected: (smaller than expected), Touax currently projects an increase of 5.4% in 2021(1). ► Si
Slide 36: Operational strategy
Operational strategy To underpin performance and profitability Growth drivers Improvement in margins Freight railcars ► Organic growth with investments in Europe and Asia ► Ongoing improvement plan and streamlined processes financed by Touax and third party investors (partnerships at Group level (le
Slide 37: Structural outlook
Structural outlook Touax holds several attributes In an uncertain economic environment over the short term ► Resilience of Touax’s business model ► The slowdown of logistical chains had a positive effect with the transfer of routes to rail and a greater need for containers Structurally ► Strong supp
Slide 38: Structural outlook: Touax at the centre of sustainable transportation
Structural outlook Touax at the centre of sustainable transportation Growing demand linked to ecological Recent achievements by Touax with a view to objectives ongoing improvement ► EcoTransIT World platform ► Freight railcars In December 2020: Green Loan label obtained in relation to the Used to ca
Slide 39: Contents
Contents ► A resilient business model ► Good level of business activity in 2020 ► Return to profitability and stronger financial structure ► A confident outlook over the coming years ► Asset valuation and stock market Financial analyst meeting 39 26 March 2021
Slide 40: Asset valuation at 31 December 2020
Asset valuation at 31 December 2020 Net asset value per share at 31 December 2020: €14.24 (5) Touax-owned fleet of assets Net book value(4) Market value(2) Europe: €95.3m Europe: €110.0m Freight railcars India: €5.1m India: €5.1m(3) River barges €47.1m €60.2m Containers(¹) €68.8m €74.5m Mana
Slide 41: TOUAX and the stock market
TOUAX and the stock market Share data 2020 2019 No. of shares (in thousands) 7,011 7,011 Market capitalisation (€m) 64.65 37.16 Consolidated shareholders’ equity (Group share) (€m) (1) 92.26 97.76 Price to Book Ratio (excl. hybrid debt) 0.97 0.78 EPS (€) 0.84 (0.39) Highest price (€) 9.68 6.48 Lowes
Slide 42: Thank you!
Thank you! Financial analyst meeting 42 26 March 2021