Slide 1: 2014 Results
Touax’ 2014 Results
Slide 2: Leading positions
Leading positions Shipping containers: 57% of revenue ► Our position ► Our activity o European leader o Leasing, lease purchase, sale and lease back o 2nd worldwide asset o Management on behalf of third parties managers of containers o Sales (new and used) for third parties o 627,000 containers (TEU
Slide 3: 91% of the business outside France
91% of the business outside France Breakdown of the divisions’ business by geographical areas Shipping Containers 100% International Breakdown of the business by Modular buildings 6% 3% geographical areas Europe 1% 6% Africa USA 3 91% 36% Freight railcars 57% 24% 76% Europe USA International Europe
Slide 4: Agenda
AGENDA ► Part 1 Revenues and financing ► Part 2 Divisions presentation ► Part 3 Strategy ► Part 4 TOUAX and the Stock Market 2014 Annual results 4
Slide 5: 2014 financial indicators
2014 financial indicators Revenue • €378.7 million EBITDA (EBITDA after • €40 million distribution) Net results • €-12.9 million 5 Free cash flow • €57.1 million Net debt • €358 million (-10%) Shareholders’ equity • €185 million (stable) Asset under management • €1.7 billion (>2bn$) 5
Slide 6: Highlights 2014
Highlights 2014 ► Good performance of the 3 businesses of transportation equipment (leasing and sales of containers, railcars and river barges) with a positive operating income figures, benefiting from better geographic diversification ► Modular buildings business still impacted by the low activity
Slide 7: Steady improvement since 2012
Steady improvement since 2012 Evolution of Gross and Net debt (EUR M) Evolution of the LTV (using book value) 492 800 73% 74% 454 72% 59 439 600 68% 70% 54 400 68% 80 596 591 546 66% 433 200 433 400 359 400 66% 64% 359 0 62% 2012 2013 2014 2012 2013 2014 Net Debt Cash Tangible Assets Net Debt LTV 7
Slide 8: Revenues and Financing: Income statement
Revenues and Financing Income statement in € thousands 12/2014 12/2013 Leasing revenue 206,189 206,104 Sales of equipment 172,502 143,158 Capital gains from sale 172 (13) REVENUES FROM ACTIVITIES 378,863 349, 249 Cost of sales (157,363) (127, 835) Operating expenses (97,859) (91, 193) Sales, general
Slide 9: Revenues and Financing: Income statement
Revenues and Financing Income statement ► Revenue of €378.7m up by 8.4% (+€29.4m) ● Increase in sales revenue of €29.3 m due to syndications ● Stability of the rental revenue at €0.9m ► EBITDAR (EBITDA before distribution to investors) of €94.9m down by 7.4% (-€7.5m) • Weak Modular Building business
Slide 10: Revenues and Financing: EBITDA
Revenues and Financing EBITDA ► Decrease in EBITDA (EBITDA after distribution to investors) of €10.9m EBITDAR (EBITDA EBITDA (EBITDA before distribution Distribution to after distribution in € thousands to investors) investors to investors) Shipping container 57,778 (51,416) 6,362 Modular building 1
Slide 11: Comparative summary balance sheet
Revenues and Financing Comparative summary balance sheet ASSETS LIABILITIES €745 million €745 million €725 million €725 million Share- 184 holders' 185 equity Capitalized 524 11 equipment 505 LT financial liabilities 310 313 Other non- current 10 Provisions assets 12 37 39 Current 103 128 240 assets
Slide 12: Comparative summary balance sheet
Revenues and Financing Comparative summary balance sheet ► Capitalized equipments €505m vs. €524m (€+19 m) ► Current assets €103m vs. €128m • Inventory €37m (€-24m) • Clients €51m (€+2m) • Others €15m (€-3m) ► Equity €185m vs. €184m (including €22m 12 of minority interest) ► LT financial liabilities
Slide 13: Economic balance sheet
Revenues and Financing Economic balance sheet ASSETS LIABILITIES 543 m€ 584 m€ 543 m€ 584 m€ Working (38) (39) capital requirement 184 Shareholders’ 185 equity 13 579 623 Capital Net financial assets liabilities 358 400 31/12/2014 31/12/2013 31/12/2014 31/12/2013 13
Slide 14: Investments
Revenues and Financing Investments ► Net investments on December 31, 2014 totalled €14.6 million compared to €50 million on December 31, 2013 ● Investments in capitalized assets and inventory: €-41.6 million (€35.3 million on December 31, 2013) ● Managed investments: €56.2 million (€14.8 million on
Slide 15: Cash Flow statement
Revenues and Financing Cash Flow statement ► Cash Flow Statement (€ million) 2014 2013 31.1 44.2 Operating activities excluding WCR 12.4 11.7 WCR (excluding inventory) 13.6 (30.6) Net purchase of equipment and change in inventory 57.1 25.3 OPERATING ACTIVITIES 15 (0.3) (7.3) Investing activities (37
Slide 16: Debt
Revenues and Financing Debt ► Presentation of gross debt Balance sheet Breakdown Rate 31/12 Floating rate amount share Short-term loans with recourse 102.3 m€ 23% 1.39% 100% Medium- and long-term loans with recourse 148.5 m€ 34% 4.73% 3% Debt non recourse 188.3 m€ 43% 3.70% 53% TOTAL GROSS DEBT 439.
Slide 17: Debt
Revenues and Financing Debt Net financial debt with recourse Leverage with recourse Gearing with recourse (net financial debt with recourse/ rolling (net financial debt with recourse / 200 shareholders’ equity) annual EBITDA) 4.95x 4.75x 5,0x 2,0x 175 1.9x 4,0x 177.2 4.34x 1,5x 150 3,0x 3.88x 169.8
Slide 18: Market risk management
Revenues and Financing Market risk management Liquidity risk management ► Theoretical debt reimbursements for 2015 totalled €125.9 million ● €45.6 million in scheduled reimbursements ● €24.4 million in short-term credit lines, renewed annually ● €55.9 million in repayments of non-recourse debts (inc
Slide 19: Market and currency risk management
Revenues and Financing Market and currency risk management ► Interest rate risk management ► Currency risk management ● Average rate of the debt stable compared ● Operational with June 2014, to 3.52% - The Group believes is has minimal exposure to operational currency risk ● After the impact of hedg
Slide 20: Breakdown of managed gross tangible assets
Revenues and Financing Breakdown of managed gross tangible assets ► Annual average growth of the fleet (over 10 years) 12.2% Group owned assets Investor-owned assets 1 800 In € million 1708 1581 1588 1 600 Annual average 1456 1 375 growth - managed 1 400 1 303 assets (over 10 1 229 years): +9.1% 1 2
Slide 21: Managed gross tangible assets at 31 December 2014
Revenues and Financing Breakdown of managed gross tangible assets at 31 December 2014 Group-owned assets Investor-owned assets 889 900 800 700 600 21 500 829 400 357 368 32 Ongoing actions and syndications to 123 300 reduce the Group- owned assets in 2015 200 325 85 245 100 16 60 79 0 Shipping conta
Slide 22: Third-party asset management
Revenues and Financing Third-party asset management ► 2014 performance analysis ● $140m sales of containers to investors ● First programmes in the River Barge business in South America Profile and ● Pursuit of the strategy of diversification with new investors investors strategies ► Management strat
Slide 23: Agenda
AGENDA ► Part 1 Revenues and financing ► Part 2 Divisions presentation ► Part 3 Strategy ► Part 4 TOUAX and the Stock Market 2014 Annual results 23
Slide 24: Shipping containers: N°1 in Europe
Shipping containers: N°1 in Europe
Slide 25: Shipping Containers: Our products, our services
Shipping Containers Our products, our services ► Touax, a renowned player in this market for 30 years, remains in the top 10 worldwide ► Expertise built around the rental business of new and second-hand containers (20 ', 40' and 40' high cubes) ► A complete package offered to customers 25 including
Slide 26: Shipping Containers: A worldwide presence
Shipping Containers A worldwide presence Hightlights 2014 ► Leasing activity up 3% despite a competitive environment: over 20,000 new containers leased ► 8 sale and leaseback transactions carried out with shipping companies for over 40,000 Ceus 26 ► Developing sales activity for new and used contain
Slide 27: Faster growth than the overall market
Shipping Containers Faster growth than the overall market ► Growth in TOUAX container fleet Number of containers (TEU size) 700 000 627 108 602 096 TOUAX average 600 000 564 866 annual growth 508 850 494 363 (over 10 years): 500 000 481 819 481 759 +9.4 % 438 195 27 400 000 367 050 Global market 288
Slide 28: Proactive fleet management
Shipping Containers Proactive fleet management ► A recent, high quality fleet (standard dry containers 20’ and 40’) 12/2014 12/2013 Average age 7.9 years 7.2 years Proactive management Average utilization rate (period) 90.5% 93.2% Average leasing period 28 6.4 years 6.4 years Long term contracts lea
Slide 29: Performances analysis and 2014 key figures
Shipping Containers Performances analysis and 2014 key figures ► Performances analysis ● Revenue up by 14.6% (no impact from exchange rates) ● Leasing revenue increased by 2.9% due to a growth of the fleet and despite the erosion of rental rates. Average utilisation rate above 90% ● Increase in sale
Slide 30: Medium-term outlook
Shipping Containers Medium-term outlook Market TOUAX ► Despite mixed outlooks, growth in world trade expected in 2014 of 3.1% (IMF) • Opportunity to increase the assets under management ► Forecast for growth in containerized traffic of 7% in 2014 and in 2015 • Development of lease-purchase and sale
Slide 31: Modular Buildings: N°2 in Continental Europe
Modular Buildings: N°2 in Continental Europe
Slide 32: Modular Buildings: Our products and services
Modular Buildings Our products and services ► Expertise built around the modular buildings leasing business ► A complete package offered to customers including sale of modular units and all the associated transportation, assembly and dismantling ► Modular buildings with a steel structure have cost 3
Slide 33: Modular Buildings: A worldwide Group
Modular Buildings A worldwide Group A worldwide presence Hightlights of 2014 Europe ► Strong exposure to the construction sector in western Europe, which impacts on the business, resulting in low utilization rate or leasing rate in France, Benelux and Spain ► Higher utilisation rate in Poland and gr
Slide 34: Management of the fleet
Modular Buildings Management of the fleet ► Growth in modular buildings fleet Number of modular buildings (unit) 60 000 51 177 51 499 50 482 49 064 50 000 45 984 42 536 Average annual growth 40 000 37 577 34 for TOUAX (over 10 years): + 9.9% 30 477 30 000 24 314 21 820 20 000 Average annual growth f
Slide 35: Management of the fleet
Modular Buildings Management of the fleet Fleet management 12/2014 12/2013 Average age 7.3 years 6.8 years Proactive management Average utilization rate(period) 64% 68% 35 Average leasing period 21 months 22 months Number of leasing agreements 4,682 4,771 Economic lifespan 20 to 30 years Depreciatio
Slide 36: Performances analysis and 2014 key figures
Modular Buildings Performances analysis and 2014 key figures ► Performances analysis ● Revenue down by 8.6 % ● Leasing activity down by 5.6% due to low construction activity in Europe and strong competition between rental providers, resulting in lower utilisation rates ● Sales down by 15.1% (€5 mill
Slide 37: Medium-term outlook
Modular Buildings Medium-term outlook Market TOUAX ► A cyclical construction underlying market • A progressive return to profitability ► In Europe, the year 2014 was • Continuation of the recovery plan marked by a low point in activity • Elimination of excess capacities in our fleet • Increased util
Slide 38: Freight railcars: N°2 in Europe (intermodal railcars)
Freight railcars: N°2 in Europe (intermodal railcars)
Slide 39: Freight railcars: Our products and services
Freight railcars Our products and services ► Renowned expertise built around freight railcar leasing ► An extended range of railcars offered to our customers: railcars carrying shipping containers, coal, cars, steel coils, palletized products etc. ► A maintenance service package to complement our 39
Slide 40: A varied offer in Europe and in the USA
Freight railcars A varied offer in Europe and in the USA An anchorage in Europe and in the USA Highlights 2014 ► In Europe ● Leasing activity is slowly recovering ● Development of new service offers linked to leasing (trading, technical management of fleets belonging to third parties). ► In the USA
Slide 41: Faster growth than the overall market
Freight railcars Faster growth than the overall market ► Growth in number of railcars Number of railcars (plateformes) Technical management 10 000 9 000 TOUAX average 9 119 1 304 8 706 annual growth of 8 000 8 231 1304 the fleet without 7 952 7 531 technical 7 000 7349 41 management (over 6 683 10 y
Slide 42: Key figures of the railcars
Freight railcars Key figures of the railcars A recent, high-quality fleet 12/2014 12/2013 Average age of the fleet* 10.2 years 9.7 years Proactive management 42 Average utilization rate (Europe and USA for 77.9% 76.6% the period)* Average leasing period 3.3 years 3.8 years Economic lifespan 30 to 50
Slide 43: Performance analysis and 2014 key figures
Freight railcars Performance analysis and 2014 key figures ► Performance analysis ● Revenue has increased by 34.5%, due to the sale of railcars achieved in the USA ● Rental revenue is stable at +0.5% reaching €34.2m, the increase in activity in Europe was offset by the loss of income in the United S
Slide 44: Medium-term outlook
Freight railcars Medium-term outlook Market TOUAX ► In Europe the situation is mixed though a slight • Growth in the ECM activity (Entity in Charge of improvement Maintenance) ► Structural requirement to • Return of a demand from industrial customers replace the rental fleet in Europe (about 23,000
Slide 45: River barges: N°1 in Europe and in South America
River barges: N°1 in Europe and in South America
Slide 46: River barges: A worldwide presence
River barges A worldwide presence A presence on 3 worldwide main basins Highlights 2014 ► An increase in leasing business with a average utilization rate close to 94.5% ► Continued expansion of sales and trading in second-hand equipment Our products and services 46 ► Expertise built around the river
Slide 47: Key figures of the river barges
River barges Key figures of the river barges A recent, high-quality fleet : 130 river barges 12/2014 12/2013 Average age 12.2 years 11.5 years Proactive management Average utilization rate (period) 94.5% 86% 47 Average leasing period 7 years 5.6 years Economic lifespan 30 to 50 years Depreciation 30
Slide 48: Performances analysis and 2014 key figures
River barges Performances analysis and 2014 key figures ► Performances analysis ● Leasing revenue increased by 3% due to the increase in the utilisation rate which approached 95% ● Sales revenue down by 27.6%, due to a lower number of sales in 2014 ● Good activity in Europe ● EBITDA of €5.6m, stable
Slide 49: Medium-term outlook
River barges Medium-term outlook Market TOUAX ► Recovery in Europe due to • Good geographical diversification with activities in the need to renew an North and South America and in Europe ageing fleet • Development in South America to reduce the ► Raising the awareness of exposition in Europe and st
Slide 50: Agenda
AGENDA ► Part 1 Revenues and financing ► Part 2 Divisions presentation ► Part 3 Strategy ► Part 4 TOUAX and the Stock Market 2014 Annual results 50
Slide 51: One business, 4 activities and a global presence
One business, 4 activities and a global presence • A single business (operational leasing and associated services) divided into 4 activities to support market cycles: markets of shipping containers, river barges, freight railcars and modular buildings • Objective of achieving a balanced global prese
Slide 52: Leasing, sale, services
LEASING, SALE, SERVICES A late cyclical economic model Standardized and Long-life assets mobile equipment Key advantages TOUAX ► Recurrent cash ► Balanced risk management flow (proprietary vs. 72% of third party) 52 recurrent leasing revenues ► Strong leading ► Diversified positions markets on diffe
Slide 53: Operational and financial strategy
Operational and financial strategy Operational Strategy Financial strategy ► Growth of the three transport businesses (shipping containers, freight railcars and river barges) ► Financing of growth mainly by third-party investors Growth in managed fleets Growth into developing areas ► Increased cash
Slide 54: Agenda
AGENDA ► Part 1 Revenues and financing ► Part 2 Divisions presentation ► Part 3 Strategy ► Part 4 TOUAX and the Stock Market 2014 Annual results 54
Slide 55: TOUAX and the Stock Market: Share prices
TOUAX and the Stock Market Share prices Share price over 5 years (base 100 on 04/01/2010) 160 140 120 55 TOUAX Cac All Tradable 100 CAC small 80 60 04/01/2010 04/01/2011 04/01/2012 04/01/2013 04/01/2014 04/01/2015 ►TOUAX has been included in the CAC® Small and CAC® Mid & Small and EnterNext© PEA-PME
Slide 56: Stock market data
TOUAX and the Stock Market Stock market data 2014 2013 2012 2011 2010 Number of shares (in thousands) 5,884 5,884 5,740 5,720 5,696 Market capitalization (in €m) 86.49 111.44 124.62 124.71 167.82 Consolidated shareholders’ Group equity (€m) 162.65 156.86 148.98 146.88 140.20 Price to Book Ratio (exc
Slide 57: Questions & Answers
Questions & Answers For further information, visit www.touax.com and for each of our activities www.touax.fr www.touax-container.com www.touaxrail.com www.touax-river-barges.com