Touax Sa · EURONEXT:ALTOU
Touax Sa — H1 2009 Earnings Presentation
50 slides from Touax Sa's earnings presentation, Sep 3, 2009
Slide 1: Half-year financials 2009
Half-year financials 2009 Palais Brongniart – September 3, 2009
Slide 2: Contents
CONTENTS ■□□□□ Company profile ■■□□□ Results and financing ■■■□□ Strategy and targets ■■■■□ TOUAX and the stock market ■■■■■ Questions/Answers Half year Result 2009 2
Slide 3: Company profile
Company profile ⃞ TOUAX Group ⃞ TOUAX businesses < Contents Company profile Results and financing Strategy and targets TOUAX and the stock market Questions/Answers Half-year Results 2009 3
Slide 4: The TOUAX Group
The TOUAX Group Your operational leasing solution ► Specialised in operational leasing and associated services ► A team of 661 professionals in 15 countries Europe, North America, and Asia ► Four global, industry-leading divisions with fast and efficient response capability Shipping containers Modul
Slide 5: A diversified company
The TOUAX Group A diversified company B re a k d o w n b y b u s in e s s d iv is io n , firs t h a lf o f 2009 ► Diversification in four R a ilc a rs 2 6 % S h ip p in g core businesses c o n ta in e rs 3 5 % operating in international markets R iv e r b a rg e s 7% M o d u la r b u ild in g s 3 2
Slide 6: Our core business
The TOUAX Group Our core business ► LEASING ● Offer short or long-term flexible investment-free solutions, with or without an option to buy ● Meet requirements by offering associated services ► STANDARDIZED LONG-LIFE ASSETS ● Four asset types, all with complementary qualities: high investment appeal
Slide 7: Our strategy
The TOUAX Group Our strategy ► LONG-TERM DEVELOPMENT ● Increase the fleet of new lease equipment in the four core businesses ● Pursue the Group's growth strategy in a bid to increase market share and generate economies of scale ► SPREADING RISK ● A healthy balance of proprietary and third-party asse
Slide 8: TOUAX businesses: Shipping Containers
TOUAX businesses Shipping Containers Half-year Results 2009 8
Slide 9: Shipping Containers: leasing and TOUAX strengths
TOUAX businesses Shipping Containers ► Leasing of standard dry containers (20 ft and 40 ft) ● on long-term contracts (79% between 3 and 7 years, as of 30 June 2009) ● Flexible short-term leases (master leases) or lease-purchase agreements ► TOUAX’ strengths: ● New, high-quality containers (average a
Slide 10: Growth in TOUAX' container fleet
TOUAX businesses Shipping Containers ► Growth in TOUAX’ container fleet Number of containers (TEU) 508 850 502 180 500 000 438 195 TOUAX’ average 450 000 annual growth rate : 367 050 400 000 15.4% 350 000 288 904 300 000 255 709 250 000 215 436 Market average annual 200 000 179 256 161 546 growth ra
Slide 11: Trade has slowed since September 2008
TOUAX businesses Shipping containers ► Trade has slowed since September 2008 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Container traffic 2% 10% 12% 13% 10% 11% 11% 5% -8% 2% Container vessels 8% 8% 8% 8% 11% 14% 12% 11% 10% 12% Container fleet 4% 6% 9% 10% 7% 9% 12% *5% *-5% *2% Source : Cla
Slide 12: Medium-term outlook
TOUAX businesses Shipping containers ► Medium-term outlook ● Opportunities are available (sale & leaseback, leaseback with management); ● Clarkson forecasts stabilisation/upturn in 2010 (a rise of 2%) ● Inter-Asian traffic rising again since April 2009; Europe to Asia traffic rose 7.8% in May 2009 ●
Slide 13: TOUAX businesses: Modular buildings
TOUAX businesses Modular buildings Half-year Results 2009 13
Slide 14: Modular Buildings: TOUAX' strengths
TOUAX businesses Modular Buildings ► TOUAX offers high-quality equipment for a wide range of uses (offices, schools, hospitals, site accommodation, etc.) under a variety of contracts: ● Lease ● Lease-purchase ● Purchase ► TOUAX’ strengths: ● Operations in nine European countries (including Eastern E
Slide 15: Growth in TOUAX modular buildings
TOUAX businesses Modular Buildings ► Growth in TOUAX modular buildings Number of Units 39 172 40 000 37 577 38 000 36 000 34 000 32 000 30 477 30 000 TOUAX average 28 000 24 314 annual growth rate 26 000 +13.4% 24 000 19 719 21 820 22 000 19 443 20 000 18 716 19 064 Market average annual 18 000 15 2
Slide 16: Modular buildings: Year 2009 and medium-term outlook
TOUAX businesses Modular Buildings ► Year 2009 ● Downward pressure on leasing prices ● Sustained growth in Germany ● Satisfactory level of activity in France, Benelux and Eastern Europe ● Distinct slowdown in the US and Spain (1.7% of group revenues) ► Medium-term outlook ● Modular buildings: still
Slide 17: TOUAX businesses: River barges
TOUAX businesses River barges Half-year Results 2009 17
Slide 18: Europe's largest fleet of river barges
TOUAX businesses River barges ► Europe’s largest fleet of river barges for dry bulk cargoes 172 units and a hull capacity of 389,229 tons (coal, cereals, ore, fertiliser, cement, etc.) source: TOUAX ● Main business lines: transport, chartering, leasing ● TOUAX’ strengths • Unrivalled international e
Slide 19: River barges: Year 2009 and outlook
TOUAX businesses River barges ► Year 2009 • Taking delivery of river barges in Europe and South America now completed • Lower quantities and lower prices in Europe (Rhine and Danube) • Satisfactory level of activity in South America (iron ore) and the United States (cereals) ► Medium-term outlook •
Slide 20: TOUAX businesses: Railcars
TOUAX businesses Railcars Half-year Results 2009 20
Slide 21: Railcars: TOUAX' strengths
TOUAX businesses Railcars ► TOUAX provides long-term leases for: ● Container railcars ● Vehicle carriers ● Hopper and bulk powder railcars for heavy goods (cement, grain, etc.) ► TOUAX’ strengths: ● Services that meet customers' needs in Europe’s newly deregulated rail freight market ● A partnership
Slide 22: Growth in TOUAX' railcar fleet
TOUAX businesses Railcars ► Growth in TOUAX’ railcar fleet Number of railcars (platforms) 7 404 6 683 7000 6000 5 424 Touax average annual growth rate : 5000 4 191 43.9% 4000 3 091 3000 2 448 1 736 2000 Market average annual 1 067 growth rate: 2% 482 1000 (source: TOUAX) 0 2001 2002 2003 2004 2005 2
Slide 23: Railcars: Year 2009 and outlook
TOUAX businesses Railcars ►Year 2009 • Pressure on lease prices and utilization rates • European capital spending down to €40m because of low demand • No capital spending at all in the USA • Opportunities currently under examination (sale & leaseback, leaseback and take over the management of existi
Slide 24: Results and financing
Results and financing ⃞ Key figures, income statement, EBITDA ⃞ Summary balance sheet ⃞ Investments ⃞ Cash flow statement ⃞ Debt ⃞ Handling market risk ⃞ Equipment managed for third parties < Contents Company profile Results and financing Strategy and targets TOUAX and the stock market Questions/Ans
Slide 25: Key figures
Results and financing Key figures ► Sales growth stalling: Turnover (thousand Euros) 160 000 ● -15.3% (lower syndications 146 857 Up 43% in 140 000 5 years 130 919 and sales) 122 849 124 376 120 000 102 055 ► But leasing holds up well: 100 000 86 807 ● leasing turnover (+9.4%) 80 000 June June June
Slide 26: Income Statement
Results and financing Income Statement (€000s) 30/06/2009 30/06/2008 % change Leasing turnover 102 019 93 216 Sale of equipment, &c. 22 142 53 032 Capital gains on disposal 215 609 Operating costs 124 376 146 857 -15% Cost of sales (18 552) (47 292) Charges on ordinary operations (38 259) (35 731) C
Slide 27: EBITDA
Results and financing EBITDA ► EBITDA (after distribution to investors) is steady, as the growth in assets is balanced by lower sales and pressure on usage rates and lease tariffs E B IT D A b e fo r e E B IT D A a fte r d is tr ib u tio n to D is tr ib u te d to d is tr ib u tio n to (€ 0 0 0 s ) i
Slide 28: Summary balance sheet
Results and Financing Summary balance sheet 538 m€ 538 m€ 501 m€ 501 m€ 123 Equity 102 Non- current 324 assets 311 Non- 252 251 current liabilities Current assets 189 Current 154 163 liabilities 148 Cash 25 36 30 June 09 31 D ec 08 30 June 09 31 D ec 08 Half-year Results 2009 28
Slide 29: Investments
Results and financing Investments ► €63.3m net capital investment in the half-year to 30 June 2009 (€130.6m in the half-year to 30 June 2008) ● Investments in capitalized assets & inventory: €45.4m (€82m in the half- year to 30 June 2008) ● Investments in managed equipment: €17.9m (€48.3m in the hal
Slide 30: Cash flow statement
Results and financing Cash Flow statement ► Cash flow statement June 2009 June 2008 2008 Cash-flow from operations, beyond operating requirements 25.7 23.4 54.8 Taxes and operating cash requirements (except inventory) (5.6) (12.1) (34.0) Change in inventory (27.3) (41.0) (29.0) Net purchases of equi
Slide 31: Debt: gearing and leverage ratios
Results and financing Debt 30-June-09 2008 Net financial indebtedness with recourse €168m €159.1m Gearing with recourse (net financial debt with recourse / shareholders’ equity) 1,4 1,6 Leverage with recourse (net financial debt with recourse / EBITDA) 3,1 3,0 ► Gearing and Leverage ratios steady ►
Slide 32: Debt breakdown
Results and Financing Debt Balance sheet Breakdown Average Portion on figure rate variable rate Short term credit with recourse €41.3m 14% 1,89% 100% Medium and long term credit with recourse €151.7m 50% 4,18% 37% Debts without recourse €113.0m 37% 3,11% 71% TOTAL 306.0 M 100% 3,47% 58% ► 36.9 % of
Slide 33: Handling market risk: liquidity
Results and financing Handling market risk ► The Group faces limited liquidity risk thanks to: ● operating cash-flow (net of changes in operating capital requirements) at €25.7m for the first half of 2009 ● the Group’s self-financing resources (plus asset sale values) at €30.6m on average over the l
Slide 34: Handling market risk: interest rate and currency
Results and financing Handling market risk ► Interest rate risk ● Rate swaps have fixed interest rates on long-term debts in USD and PLN ● After hedging: 58% of overall debt is at variable rates, and 42% at fixed rates ● For ongoing debt (excluding short term financing) the fixed/variable breakdown
Slide 35: Equipment managed for third parties
Results and financing Equipment managed for third parties ► In a difficult financial climate, the Group has finalized €15m worth of management programs during the first half of 2009; ► The Group currently manages over €800m of assets for more than 20 investors in over 25 different equipment pools ►
Slide 36: Equipment managed for third parties: investor returns
Results and financing Equipment managed for third parties ► According to conservative estimates, TOUAX generates profitability for investors between 6% and 7% above the long-term rate (before leverage); ► Annual returns on investment vary between 9% to 13% depending on the marketplace and the econom
Slide 37: Significant events in the first half of 2009
Results and financing Equipment managed for third parties ► Significant events in the first half of 2009: ● In April 2009 TOUAX secured funding for institutional investors in a portfolio of shipping containers financed under a securitisation deal (known as “Trust 98” by selling the assets to other i
Slide 38: Breakdown of managed asset ownership
Results and financing Breakdown of managed asset ownership in each division ► (€m) Material owned by investors Average annual Material owned by the Group growth in equipment 14% 1400 1 279 1 229 1200 Growth in TOUAX-owned 1000 944 assets +16.3% 817 791 812 800 687 643 600 514 487 514 541 440 593 Gro
Slide 39: Breakdown of assets by division
Results and financing Breakdown of assets by division owned by investors Equipment owned by the Group 700 600 500 400 574 300 55 173 200 204 15 100 146 43 69 0 Shipping Modular River Barges Railcars &c. Containers buildings (million €) Half-year Results 2009 39
Slide 40: Strategy and targets
Strategy and targets ⃞ The Group’s strategy ⃞ Diversification risk ⃞ 2009 targets < Contents Company profile Results and financing Strategy and targets TOUAX and the stock market Questions/Answers Half-year Results 2009 40
Slide 41: The Group's strategy
Strategy and targets The Group’s strategy ► In 2009 the Group aims to continue to consolidate its achievements and will carefully examine opportunities for worthwhile acquisitions in the current climate of slower organic growth ► Medium term ● Development policy • Increase the fleet of equipment on
Slide 42: Diversification risk
Strategy and targets Diversification risk ► Breakdown in managed assets ● 25% owned by TOUAX ● 75% managed for investors ► Owned equipment provides a substantial recurring revenue stream and bolsters the company's prospects through opportunities for gains on future sales ► Equipment managed for inve
Slide 43: Outlook for 2009-10
Strategy and targets Outlook for 2009-10 ► The outlook is still healthy ► despite the erosion of profitability (lease tariffs and utilization rates) on existing assets (owned or managed) ► and slower organic growth ► The Group remains resilient thanks to sound fundamentals: ● Diversification of its
Slide 44: Outlook for 2009
Strategy and targets Outlook for 2009 ► The Group confirms it’s ability to “ weather the storm” ► The Group’s target is at least 5% growth in leasing turnover, after the five years of rapid growth Half-year Results 2009 44
Slide 45: TOUAX and the stock market
TOUAX and the stock market ⃞ TOUAX share price ⃞ TOUAX share data ⃞ Strengths of the TOUAX share < Contents Company profile Results and financing Strategy and targets TOUAX and the stock market Questions/Answers Half-year Results 2009 45
Slide 46: Stock share price
TOUAX and the stock market Stock share price 3 0 0 ,0 0 2 6 0 ,0 0 2 2 0 ,0 0 1 8 0 ,0 0 1 4 0 ,0 0 1 0 0 ,0 0 6 0 ,0 0 1 4 /0 3 /2 0 0 4 1 4 /0 3 /2 0 0 5 1 4 /0 3 /2 0 0 6 1 4 /0 3 /2 0 0 7 1 4 /0 3 /2 0 0 8 1 4 /0 3 /2 0 0 9 S B F2 5 0 CA CS MA L L 9 0 TO UA X ► TOUAX was added to the SBF 250 and
Slide 47: Stock share data
TOUAX and the stock market Stock share data 30/6/2009 2008 2007 2006 Number of shares (000s) 5 635 4 683 3 898 3 886 Market capitalization (€m) 108,71 80,78 156,65 97,52 Consolidated shareholders’ equity, group’s share (€m) (1) 122,98 102,49 68,50 60,47 Highest price (€) 21,20 40,60 41,99 27,30 Lowe
Slide 48: Strengths of the TOUAX share
TOUAX and the stock market Strengths of the TOUAX share ► A robust business model: ● TOUAX’ equipment retains a high market value due to its standard features and long useful life, giving the company a recurring cash flow ● Diversification and global exposure, which help diversity macroeconomic risk
Slide 49: Questions/Answers
Questions/Answers ⃞ For further information, please visit the TOUAX website ⃞ www.touax.com < Contents Company profile Results and financing Strategy and targets TOUAX and the stock market Questions/Answers Half-year Results 2009 49
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