Europcar Mobility Group
Third quarter 2019 Results
Regulatory News:
Europcar Mobility Group (Paris:EUCAR):
All data in €m |
Q3 2019 |
Q3 2018 |
9M 2019
9M 2018
1 008
989
2 315
2 286
2.1%
1.4%
(0.1%)
0.2%
226
246
276
300
22.7%
25.1%
12.1%
13.3%
218
241
249
288
21.6%
24.5%
10.8%
12.6%
Caroline Parot, CEO of Europcar Mobility Group , declared:
"Over the quarter, the Group continued to successfully roll out its BU roadmap, with significant progress in both footprint and results for Vans & Trucks, as well as another very strong quarter in terms of revenue growth for Urban Mobility. In addition to this, the finalization of our expansion in the US, biggest mobility market in the world, will create strong growth opportunities in leisure, while enhancing our offer to our B2B customers.
Impacted by a degraded environment in Europe, with the Brexit situation and a global economic slowdown, our third-quarter performance was characterized by weaker than expected leisure demand and declining B2B volumes, hence increased headwinds from pricing. All these factors, which weigh on our revenue and profitability, have led us to revise our guidance for the full year.
Against this backdrop, the Group Management Board & Executive Committee have decided to accelerate the implementation of its cost efficiency programs: HQ 2020, Network Optimization and Digital Stations, with at least €60m gross savings generation by end 2020. In addition to this, a strong financial discipline will allow us to rapidly adapt to a changing environment, with cash flow generation and margin improvement focus.
The group is profoundly engaged in its digital transformation journey, focusing on clients, growing its core business (vehicle rental and urban mobility) and developing Corporate segments. I am confident that the adaptation measures we are implementing, combined with the resilient nature of our business model, already producing positive effects as of 2019, will further improve our margin in 2020, while SHIFT 2023 will drive long-term growth and cash flow generation.”
Lesen Sie auch
Europcar Mobility Group brings forward the publication of its Q3 2019 results, initially planned for November 7th, and reviews its annual guidance. A conference call will take place today at 6.30 p.m. CET. To connect to the call please dial one of the following numbers: - France: +33 (0)1 70 72 25 50 - United Kingdom: +44 (0)330 336 9125 - United States: +1 929-477-0402. Access code: 2028892
Webcast: https://globalmeet.webcasts.com/starthere.jsp?ei=1267415&tp_key=5c ...
Q3 2019 Business Highlights:
- The Group’s operations in the UK and Ireland particularly suffered from the increased economic uncertainties which stemmed from the Brexit situation, amounting for c.45% of the Adjusted Corporate EBITDA1decrease i.e. €10m versus Q3 2018.
- In the context of a global economic slowdown impacting most European countries, the market faced a lower-than-expected volumes demand, hence higher price pressure in all leisure destinations while B2B volumes were negatively impacted by travel bans in large corporate customers mostly starting end of August.
- While the Group took immediate operational mitigating actions (fleet optimization to stabilize utilization rates and customer acquisition investments to stimulate and capture volumes), these trends impacted its profitability, mostly in September.
- However, a strong resilience, thanks to the flexibility of the Group’s business model and the early effect of structural savings measures and synergies. As a result, Europcar Mobility Group showed 8% decrease only in Adjusted Corporate EBITDA1 to €226m versus last year.
- Over the period, the group continues to record a strong performance in Urban Mobility, a structural growth business, with revenue up c.+50%, thanks to Paris city contract progressive ramp-up since July. In addition, the BU continues its development in car-sharing with the franchise model. This demonstrates the growth potential of the car sharing business and its non-exposure to seasonality effects.
- Europcar Mobility Group’s Q3 results demonstrate again a strong financial discipline, achieving a €86m decrease in Corporate net debt since June 30, 2019.
- To continue its swift adaptation to the environment with higher agility and greater margin protection capacity as of Q4 2019, the Group is accelerating its cost savings and efficiency
programs:
- Roll-out of HQ 2020, with a broadened scope of optimization levers.
- Network optimization in terms of processes, sizes, locations and formats.
- Deployment of our Digital Stations program.
- At least €60m gross savings generation by end 2020
In addition, strong review of the Group’s Urban Mobility path to profitability with the adequate brands portfolio.
- Pursue of the SHIFT 2023 execution with:
- Significant deliveries of strategic programs (first Click&Go platform, connected vehicles ramp-up, redesign of customer relations platform…)
- Upgrade the Group’s Tech capabilities (creation of product organization functions, appointment of a CTO coming from the Tech world)
- Enlarged footprint:
- Strategic acquisition of Fox-Rent-A-Car in the US, the largest mobility market in the world (completion in the course of Q4), and last transformational M&A.
This US acquisition will enable strong development prospects for the Group corporate and leisure businesses, given their strong upside potential both in terms of inbound and outbound flows
- Integration of the Nordic franchisees
____________________________
1 Excluding Urban Mobility
Q3 2019 Financials & FY 2019 Guidance revision:
As a summary, Adjusted Corporate EBITDA excl. Urban Mobility performance is as follows, with its foreseen outcome on our Q4 results:
Impact coming from : |
2019 Q3 vs Last Year Actual |
2019 Q4 vs Last year Range |
UK & Ireland Perimeters |
€(10)m |
€(5)m€ - €(9)m |
Rest of the group |
€(11)m |
€(5)m€ - €(11)m |
Adj. Corporate EBITDA2 |
€(21)m |
€(10)m - €(20)m |
Our full year 2019 guidance is now set up as below:
- Revenue of circa €2.95bn, factoring flat sales in Q4 2019
- Adj. Corporate EBITDA in the range of €305-315m excl. Urban Mobility and €275m-285m range incl. Urban Mobility.
- Dividend payout ratio > 30%
Adj Corporate EBITDA2 in the fourth quarter 2019 (Q4 is a traditional small quarter amounting on average for c.20% of Group’s Adj. Corporate EBITDA) ranging between €30-40m versus €50m in the Q4 2018. Note that in H1 2019, Adjusted Corporate EBITDA2 was at €51m versus €53m in H1 2018.
In addition, the Group is targeting a Corporate net debt / Adjusted Corporate EBITDA below 3x at year-end 2019 (before Fox-Rent-A-Car acquisition which impact is limited to 0.3x).
Europcar Mobility Group will release its FY 2019 results on February 25, 2020 and will as usual communicate on its 2020 guidance.
Mid-term prospects
As presented in SHIFT2023, the Group we will reinforce its Corporate Sales footprint with initiatives detailed in our SHIFT 2023 strategic plan offering a wide range of Mobility solutions to our customers.
The group launched three strategic programs focused on efficiency improvement initiatives and self-help measures around HQs and Network that will drive long-term growth and cash flow generation.
- HQ 2020 program targeting the Group’s globalization and standardization of organization by functions, throughout businesses and countries: UK perimeter already launched, real-estate review, German integration, centers of excellence development, cross-BUs and territories integration.This program is on track and will already deliver €10m gross savings in 2019 and € 20m more in 2020.
- Digital Stations”, building on top of the Click & Go investment in 2019 and on our earlier experience of connected fleet in Ubeeqo, Goldcar and Europcar: expected gross savings are €10m in 2020 and €20m in 2021.
- Network Optimization (processes, size, location and formats): expected gross savings are €20m in 2020 and €10m in 2021.
Those three programs are in progress and the Group expects at least €60m gross savings generation by end 2020
________________________________
2 Excluding Urban Mobility
Third quarter & first 9 months 2019 results
Excl. IFRS16 | Excl. IFRS16 | Excl. IFRS16 | Excl. IFRS16 | |||
All data in €m, except if mentioned |
Q3 2019 |
Q3 2018 |
Change at constant currency |
9M 2019 |
9M 2018 |
Change at constant currency |
Number of rental days (million) |
29.1 |
28.2 |
|
69.5 |
67.7 |
|
Average Fleet (thousand) |
395.0 |
381.4 |
|
329.0 |
320.4 |
|
Financial Utilization rate |
80.0% |
80.3% |
|
77.3% |
77.4% |
|
Total revenues |
1 008 |
989 |
2.1% |
2 315 |
2 286 |
1.4% |
Adjusted Corporate EBITDA |
218 |
241 |
(9.9%) |
249 |
288 |
(13.5%) |
Adjusted Corporate EBITDA Margin |
21.6% |
24.4% |
|
10.8% |
12.6% |
|
Adjusted Corporate EBITDA excl. Urban Mobility |
226 |
246 |
(8.6%) |
276 |
300 |
(8.0%) |
Adjusted Corporate EBITDA Margin excl. UM |
22.7% |
25.1% |
|
12.1% |
13.3% |
|
|
|
|
|
|
|
|
Operating Income |
210 |
242 |
|
225 |
346 |
|
Net profit/loss (1) |
131 |
148 |
|
68 |
100 |
|
Corporate Free Cash Flow |
|
|
|
109 |
167 |
|
Corporate Net Debt at end of the period |
|
|
|
851 |
791 |
|
Proforma Corporate net debt / EBITDA ratio |
|
|
|
3,0x |
2,4x |
|
(1) : excluding impact of Car2Go proceeds for 2018 |
All figures are stated excluding the impact of IFRS 16. Please refer to appendix for full disclosure of IFRS 16 impact on Q3 2019 accounts.
A) Activity & Margin after variable costs in the third quarter and first 9 months 2019
At constant perimeter, the core business excluding Urban Mobility reported stable revenue during Q3, while total revenue increased by +2.1% to € 1 008m in Q3 2019 on a reported basis.
This evolution results from soft leisure trends and a deterioration of corporate business volumes, from late August. This drop in volumes is mainly driven by large customers travel freeze which was not offset by growth in other Corporate segments (small and medium-sized enterprises and car replacement). In the third quarter 2019, Corporate segment traditionally represents c.30% of Group’s rental revenues.
Volumes trends led to an increased pricing competitive environment, with a direct effect on the Group’s ability to absorb higher fleet costs (upgraded fleet mix, more CO2 emission taxation and some adverse damage effects).
To manage this softening situation the Group activated:
- Customer acquisition plans through its different distribution channels to offset weak volumes trends, resulting in higher customer acquisition costs than the previous year (+6% i.e. €8m vs third quarter 2018).
- Accelerated fleet optimization in all its BUs, reflected in a well-managed utilization rate at 80.0%, stable versus 80.3% in Q3 2018.
As a result, margin after variable costs amounted to €456m, down 3.8% in Q3 2019 versus €474m in Q3 2018, leading to a 2.7 point decrease in margin to 45.2%.
UK & Irish perimeters alone explain c.45% of the margin after variable cost decrease vs prior year.
Focus on BUs activity and Margin after Variable Costs
■ BU Cars:
CARS |
Q3 2019 |
Q3 2018* |
|
9M 2019 |
9M 2018* |
|
|
|
|
|
|
Revenue (€m) |
716 |
701 |
|
1 669 |
1 644 |
Variation at constant perimeter (%) |
(0.6%) |
|
|
0.0% |
|
Variation on reported revenue (%) |
3.9% |
|
|
2.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Margin after variable costs (€m) |
327 |
331 |
|
707 |
707 |
Margin after variable costs (%) |
45.7% |
47.2% |
|
42.3% |
43.0% |
BU Cars generated €716m total revenue down -0.6%, at constant exchange rates and perimeter.
The BU continues to record revenue growth in leisure segments (+2.6% at constant perimeter, 3.1% volumes,-0.5% RPD), with volume growth every month. Adverse pricing effects were limited over the period, thanks to the BU Low Cost enabling large range of pricing management.
On the B2B segment, the BU Cars suffered from a significant revenue decline (-4.2% at constant perimeter versus last year) on the back of:
- The current lengthy Brexit withdrawal process which weighs negatively on the performance of the Group’s UK perimeter with detrimental impacts on the national business environment; and
- The travel freeze from end-August in key accounts in several countries (UK, Germany and France in particular).
- The voluntary and beneficial action of exiting few low-profitable large corporate accounts in the UK and Germany, in order to protect profitability.
The Group reacted extremely rapidly to the lower activity in the Corporate segment by focusing more on the Leisure segment but with an inevitable greater customers’ acquisition cost.
The BU efficiently managed the fleet utilization over the period, while suffering from higher fleet costs per unit (upgraded fleet mix to serve customer demand, but also some costs increase due to higher tax on vehicles) not being passed to customers due to the soft pricing environment. Therefore Europcar Mobility Group reported a margin after variable costs of €327m for the BU Cars in Q3 2019, leading to a -1.5 point decrease to a 45.7% margin compared to Q3 2018.
■ Vans & Trucks:
VANS & TRUCKS |
Q3 2019 |
Q3 2018 |
|
9M 2019 |
9M 2018 |
|
|
|
|
|
|
Revenue (€m) |
97 |
88 |
|
264 |
251 |
Variation at constant perimeter (%) |
8.9% |
|
|
4.3% |
|
Variation on reported revenue (%) |
10.5% |
|
|
4.9% |
|
|
|
|
|
|
|
Margin after variable costs (€m) |
40 |
39 |
|
101 |
97 |
Margin after variable costs (%) |
41.5% |
45.0% |
|
38.2% |
38.8% |
At constant exchange rates and perimeter, the BU delivered a solid +8.9% total revenue growth to €97m in the third quarter 2019, driven by a robust +11.7% increase in rental days and a -3.3% decrease in RPD, mainly linked to longer duration and mix effect between corporate and leisure segments.
This performance illustrates the success of the strategy of focusing on corporate / SME customers through longer rental duration, and the deployment of new supersites in our main countries.
In the third quarter 2019, the Group reported a stable margin after variable costs to €40m compared to Q3 2018 and a 3.7 point decrease to 41.5% margin, mainly on the back of some higher damages and maintenance in the fleet operating costs.
■ Low Cost:
LOW COST |
Q3 2019 |
Q3 2018* |
|
9M 2019 |
9M 2018* |
|
|
|
|
|
|
Revenue (€m) |
170 |
175 |
|
317 |
324 |
Variation on reported revenue (%) |
-2.9% |
|
|
-0.6% |
|
|
|
|
|
|
|
Margin after variable costs (€m) |
81 |
85 |
|
130 |
130 |
Margin after variable costs (%) |
47.6% |
48.5% |
|
41.1% |
40.1% |
* 2018 after minor reclassification for the interrent business |
BU Low Cost posted a 2.4% decline in revenue in Q3 to €170m at constant exchange rates and perimeter. This reflected an exacerbated pricing competition in Spain and Italy during the summer (RPD for the BU was down 4.2%) while volumes in rental days were up +2.8%. In new countries like Turkey, Greece and Croatia, the BU reported a solid revenue growth of +46% in Q3 2019 and YTD.
Europcar Mobility Group reported a Margin after variable costs (MAVC) of €81m for the BU Low Cost in Q3 2019, down 6%, leading to a 1.8 point decrease to a 47.6% margin compared to Q3 2018. However, the synergy programs that have been engaged are well on track, and have allowed this business unit to report an increase in its Corporate EBITDA vs last year on both Q3 and YTD, with the highest profitability of the Group.
■ Urban Mobility
Urban Mobility |
Q3 2019 |
Q3 2018 |
|
9M 2019 |
9M 2018 |
|
|
|
|
|
|
Revenue (€m) |
13 |
9 |
|
35 |
26 |
Variation on reported revenue (%) |
47.7% |
|
|
34.9% |
|
The Urban Mobility business unit showed strong momentum with c.+50% revenue growth over the third quarter.
Group’s vehicle sharing business (Ubeeqo) saw its revenue grow by +46% vs Q3 2018. Key drivers of the growth remain improving utilization rates as well as growing corporate customers’ portfolios.
The Group continued to accelerate the scale up of its Urban Mobility business through the increase of its fleet capacity and ability to attract new customers, offering an attractive alternative to car ownership in cities. Since July 2019, Ubeeqo has been massively scaling up its fleet in the French capital, as it started the implementation of the new carsharing contract signed with the Paris City hall, and has planned to provide close to 1,100 vehicles before the end of the year, with an official launch of the new service planned during November.
In Berlin, the BU has launched and is scaling up a new van sharing offer. Simultaneously, the BU Urban Mobility is developing Corporate car-sharing in that country where it has already signed 2 important new deals.
This business unit contributed for €(5)m at the Group’s MAVC in the third quarter 2019.
As part of its ramp-up strategy, Ubeeqo is already profitable in 2 cities and is working to improve its path to profitability at BU level over the next year, notably with the development of a franchisee model.
On the ride-hailing part, the UK-based Brunel activity suffered from the B2B depressed environment and is under strategic review.
B) Adjusted Corporate EBITDA in the third quarter 2019
Adjusted Corporate EBITDA in Q3 2019
On a reported basis, margin after variable costs for the BUs amounted to €456m down €18m (down €13m excluding Urban Mobility) versus Q3 2018 as described above.
The Group’s network costs increased by €12m (out of which 25% comes from Finland and Norway integration) over the period, mainly driven by volume growth over the season, minimum wages increase in some countries and to a lesser extent real-estate inflation and some supersites development for the Vans & Trucks BU.
Those increases are nevertheless mitigated by the first effects of the cost reduction programs of the HQ2020 perimeter for c.€7m and despite perimeter effect.
This lead to an Adjusted Corporate EBITDA (excluding the impact of Urban Mobility) amounted to €226m down 8.3% at constant exchange rates over the quarter and €218m including Urban Mobility.
As the conclusion of the above, the Group recorded a limited decrease of its Adjusted Corporate EBITDA:
- Down €10m on the UK and Ireland perimeter
- Down €11m on the back of a softened momentum on volumes and pricing, partly mitigated by self-help measures and cost cutting actions.
- Down €3m investments in Urban Mobility as part of the year-end planning to sustain continuous growth (c.+50% revenue growth)
This clearly demonstrates a strong reaction capacity of the Group and the resilience of the business model even when facing headwinds during peak season.
C) First 9 months 2019 results
- Revenue was up +1.3% to €2,315m on a reported basis
- Adjusted Corporate EBITDA declined by 10.8% to €249m
- Net financing costs (IFRS)
Net financing costs under IFRS amounted to a €133m net expense as of September 30, 2019, up +11% compared to a net expense of €120m incurred in 2018,the main reason for this increase being the one off costs related to the Group’s successful corporate refinancing achieved in April 2019.
- Non-recurring results
The group reported a €(41)m loss for non-recurring items compared to a proforma of €(28)m (excluding the €68m proceed of Car2Go last year). Non-recurring costs this year are mainly led by restructuring projects engaged in the whole perimeter – as planned - and network optimization.
- Net income
As of September 30, 2019 the Group posted a net profit of €68m compared to last year’s net profit of €100m in 2018 when excluding for the impact of the one off gain generated from the sale of the company’s stake in Car2Go. Including IFRS 16, the Group posted a net profit of €60m as of September 30, 2019.
Corporate Free Cash flow & corporate net debt for the first 9 months 2019
- Corporate Free Cash Flow
Corporate Free Cash Flow at the end of September 2019 reached €109m compared to €167m over the same period last year. The main reasons for that change were (1) a 13.5% decrease in Adjusted Corporate EBITDA; (2) the higher level of non-recurring expenses in order to deliver the cost optimization programs on the Group’s network of stations and headquarters, (3) a higher planned level of non-fleet capex to sustain the Group’s digital transformation: Click&Go first release in early June, digital distribution (e-commerce platforms enhancement), Connected cars programs…).
All data in €m |
9M 2019 |
9M 2018 |
Adjusted Corporate EBITDA |
249 |
288 |
Non-recurring expenses |
(37) |
(28) |
Non-fleet capital expenditure (net of proceeds from disposals) |
(61) |
(49) |
Changes in non-fleet working capital and provisions |
(15) |
(17) |
Income tax paid |
(27) |
(26) |
Corporate free cash flow |
109 |
167 |
- Corporate Net debt
Corporate net debt reached €851m as of September 30th, 2019. This includes the acquisition of the Group’s Nordic franchisees in Norway and Finland for €38m, the share buy-back program launched in December 2018 for €41m, the dividend payment for €39m and around €15m expenses for the 2020 bond redemption / new bond.
Europcar Mobility Group’s Q3 results again demonstrate a strong financial discipline, achieving a €86m decrease in Corporate net debt since June 30, 2019 versus a €58m decrease for the same period last year.
The Group’s corporate net leverage stood at 3.0x at the end of September 2019.
Investor Calendar
FY 2019 Results 25 February 2020
About Europcar Mobility Group
Europcar Mobility Group is a major player in mobility markets and listed on Euronext Paris.
The mission of Europcar Mobility Group is to be the preferred “Mobility Service Company” by offering alternative attractive solutions to vehicle ownership, with a wide range of mobility-related services: vehicle-rental, chauffeur services, car-sharing, scooter-sharing.
Customers’ satisfaction is at the heart of the Group’s mission and all of its employees and this commitment fuels the continuous development of new services.
Europcar Mobility Group operates through multi brands meeting every customer specific needs; its 4 major brands being: Europcar - the European leader in vehicle rental services, Goldcar - the most important low-cost car-rental company in Europe, InterRent – ‘mid-tier’ brand focused on leisure and Ubeeqo – one of the European leaders in car-sharing (BtoB, BtoC).
Europcar Mobility Group delivers its mobility solutions worldwide through an extensive network in more than 140 countries (including 20 wholly owned subsidiaries in Europe, 2 in Australia and New Zealand, franchises and partners).
Forward-looking statements
This press release includes forward-looking statements based on current beliefs and expectations about future events. Such forward-looking statements may include projections and estimates and their underlying assumptions, statements regarding plans, objectives, intentions and/or expectations with respect to future financial results, events, operations and services and product development, as well as statements, regarding performance or events. Forward-looking statements are generally identified by the words “expects”, “anticipates”, “believes”, “intends”, “estimates”, “plans”, “projects”, “may”, “would”, “should” or the negative of these terms and similar expressions. Forward looking statements are not guarantees of future performance and are subject to inherent risks, uncertainties and assumptions about Europcar Mobility Group and its subsidiaries and investments, trends in their business, future capital expenditures and acquisitions, developments in respect of contingent liabilities, changes in economic conditions globally or in Europcar Mobility Group’s principal markets, competitive conditions in the market and regulatory factors. Those events are uncertain; their outcome may differ from current expectations which may in turn materially affect expected results. Actual results may differ materially from those projected or implied in these forward-looking statements. Any forward-looking statement contained in this press release is made as of the date of this press release. Other than as required by applicable law, Europcar Mobility Group does not undertake to revise or update any forward-looking statements in light of new information or future events. The results and the Group's performance may also be affected by various risks and uncertainties, including without limitation, risks identified in the "Risk factors" of the Annual Registration Document registered by the Autorité des marchés financiers on March 27, 2019 under the number R. 18-020 and also available on the Group's website: www.europcar-group.com. This press release does not contain or constitute an offer or invitation to purchase any securities in France, the United States or any other jurisdiction.
Further details on our website:
www.europcar-mobility-group.com
Appendix 1 – Summary of IFRS 16 impacts
IFRS 16 is the new standard on leases, with first application on January 1, 2019.
All leases contracts are accounted for in the balance sheet through an asset representing the “Right of Use” of the leased asset along the contract duration, and the corresponding liability, representing the lease payments obligation.
Europcar Mobility Group is using the simplified retrospective method, according to which there is no restatement of comparative periods.
Main impacts on 2019 consolidated statements are the following:
P&L (inM€) |
At September 30, 2018 as reported |
At September 30, 2019 before New Standards |
Application of IFRS 16 |
At September 30, 2019 as reported |
Revenue |
2 285.7 |
2 314.7 |
2 314.7 |
|
Fleet, rental and revenue related costs |
(1 346.6) |
(1 393.4) |
19.1 |
(1 374.3) |
Personnel Costs |
(386.4) |
(394.7) |
(394.7) |
|
Network & HQ Costs |
(225.3) |
(234.2) |
61.0 |
(173.2) |
D&A and Impairment |
(31.7) |
(33.1) |
(79.7) |
(112.8) |
Other Income |
9.8 |
6.0 |
6.0 |
|
Current operating Income |
305.4 |
265.3 |
0.4 |
265.7 |
Operating Income |
346.4 |
224.7 |
0.4 |
225.1 |
Financial result |
(120.4) |
(133.3) |
(11.6) |
(144.9) |
Profit before tax |
226.0 |
91.5 |
(11.2) |
80.2 |
Net income |
168.3 |
68.3 |
(8.4) |
59.9 |
Management P&L (in M€) | ||||
RESTATEMENT OF Adj CORP EBITDA (in M€) |
At September 30, 2018 as reported |
At September 30, 2019 before New Standards |
Application of IFRS 16 |
At September 30, 2019 as reported |
Current operating Income |
305.4 |
265.3 |
0.4 |
265.7 |
D&A and Impairment |
31.7 |
33.1 |
79.7 |
112.8 |
Net Fleet Financing expenses |
(49.3) |
(49.3) |
(49.3) |
|
Adj CEBITDA calculated |
287.8 |
249.1 |
80.0 |
329.2 |
CASH FLOW STATEMENTS in M€ |
September 30, 2019 |
|||
On Operating Corporate Free Cash Flow (no impact) |
- |
|||
|
||||
On IFRS Cash Flow Statements : |
|
|||
-Cash Flow from Operation |
+88 |
|||
- Cash Flow from financing activities |
-88 |
|||
|
||||
BALANCE SHEET in M€ |
September 30, 2019 |
|||
|
||||
Assets : |
497 |
|||
-Property, Plant & Equipment |
358 |
|||
- Rental Fleet in balance sheet |
139 |
|||
|
||||
Liabilities : |
508 |
|||
- Non current lease liability (> 1 year) |
300 |
|||
- Current lease liability (< 1 year) |
208 |
Appendix 2 – Management Profit and Loss
INCL. |
|
Excl. |
Excl. |
Excl. |
Excl. |
|
INCL. |
|
|
|
|
|
|
|
|
|
|
Q3 2019 |
|
Q3 2019 |
Q3 2018 |
All data in €m |
9M 2019 |
9M 2018 |
|
9M 2019 |
1 008 |
|
1 008 |
989 |
Total revenue |
2 315 |
2 286 |
|
2 315 |
(227) |
|
(227) |
(208) |
Fleet holding costs, excluding estimated interest included in operating leases |
(566) |
(542) |
|
(571) |
(319) |
|
(325) |
(307) |
Fleet operating, rental and revenue related costs |
(787) |
(763) |
|
(762) |
462 |
|
456 |
474 |
Margin after Variable costs |
962 |
980 |
|
981 |
46% |
|
45% |
48% |
Margin |
42% |
43% |
|
42% |
(130) |
|
(130) |
(130) |
Personnel costs |
(395) |
(386) |
|
(395) |
(53) |
|
(77) |
(74) |
Network and head office overhead |
(234) |
(225) |
|
(173) |
2 |
|
2 |
6 |
Other income and expense |
6 |
10 |
|
6 |
(181) |
|
(205) |
(198) |
Personnel costs, network and head office overhead, IT and other |
(623) |
(602) |
|
(562) |
|
|
|
|
|
|
|
|
|
(18) |
|
(18) |
(18) |
Net fleet financing expense |
(49) |
(49) |
|
(49) |
(16) |
|
(16) |
(16) |
Estimated interest included in operating leases |
(41) |
(41) |
|
(41) |
(33) |
|
(33) |
(34) |
Fleet financing expenses, including estimated interest included in operating leases |
(90) |
(90) |
|
(90) |
247 |
|
218 |
242 |
Adjusted Corporate EBITDA |
249 |
288 |
|
329 |
25% |
|
22% |
24% |
Margin |
11% |
13% |
|
14% |
(39) |
|
(11) |
(11) |
Depreciation – excluding vehicle fleet |
(33) |
(32) |
|
(113) |
(15) |
|
(15) |
(7) |
Other operating income and expenses |
(41) |
41 |
|
(41) |
(21) |
|
(18) |
(25) |
Other financing income and expense not related to the fleet |
(84) |
(71) |
|
(95) |
172 |
|
175 |
199 |
Profit/loss before tax |
92 |
226 |
|
80 |
(44) |
|
(44) |
(50) |
Income tax |
(23) |
(56) |
|
(21) |
(0) |
|
(0) |
(0) |
Share of profit/(loss) of associates |
(0) |
(1) |
|
(0) |
128 |
|
131 |
148 |
Net profit/(loss) |
68 |
168 |
|
60 |
Appendix 3 – IFRS Income Statement
In € thousands |
Nine months 2019 (*) |
Nine months 2019 before IFRS 16 |
Nine months 2018 |
Revenue |
2 314 690 |
2 314 690 |
2 285 677 |
Fleet holding costs, including fleet depreciation |
(611 965) |
(606 579) |
(583 377) |
Fleet operating, rental and revenue related costs |
(762 340) |
(786 797) |
(763 240) |
Personnel costs |
(394 675) |
(394 675) |
(386 447) |
Network and head office overhead costs |
(173 182) |
(234 219) |
(225 278) |
Non-Fleet Depreciation, amortization and impairment expense |
(112 800) |
(33 077) |
(31 677) |
Other income |
5 955 |
5 955 |
9 782 |
Current operating income |
265 683 |
265 298 |
305 440 |
Other non-recurring income and expense |
(40 551) |
(40 551) |
40 919 |
Operating income |
225 132 |
224 747 |
346 359 |
Gross financing costs |
(109 148) |
(97 561) |
(96 749) |
Other net financial expenses |
(35 735) |
(35 735) |
(23 658) |
Net financing costs |
(144 883) |
(133 296) |
(120 407) |
Profit/(loss) before tax |
80 249 |
91 451 |
225 952 |
Income tax benefit/(expense) |
(20 067) |
(22 867) |
(56 433) |
Share of profit of Associates |
(246) |
(246) |
(1 239) |
Net profit/(loss) for the period |
59 936 |
68 338 |
168 280 |
Attributable to: | |||
Owners of Europcar Mobility Group |
59 980 |
68 382 |
167 872 |
Non-controlling interests |
(44) |
(44) |
408 |
Basic Earnings per share | |||
attributable to owners of Europcar Mobility Group (in €) |
0.366 |
0.417 |
1.042 |
Diluted Earnings per share | |||
attributable to owners of Europcar Mobilty Group (in €) |
0.363 |
0.414 |
1.039 |
(*) The financial statements as of September 30, 2019 are established by applying IFRS 16 (using the modified retrospective approach without restatement of the previous year).
Appendix 4 – Reconciliation
INCL. |
|
Excl. |
Excl. |
Excl. |
Excl. |
|
INCL. |
|
|
|
|
|
|
|
|
|
|
Q3 2019 |
|
Q3 2019 |
Q3 2018 |
All data in €m |
9M 2019 |
9M 2018 |
|
9M 2019 |
472.6 |
|
442.5 |
450.2 |
Adjusted Consolidated EBITDA |
806.4 |
826.7 |
|
891.8 |
(97.3) |
|
(97.3) |
(82.4) |
Fleet depreciation IFRS |
(250.3) |
(234.0) |
|
(250.3) |
(94.8) |
|
(94.5) |
(91.7) |
Fleet depreciation included in operating lease rents |
(217.0) |
(214.2) |
|
(222.4) |
(192.1) |
|
(191.8) |
(174.2) |
Total Fleet depreciation |
(467.2) |
(448.2) |
|
(472.6) |
(15.5) |
|
(15.5) |
(16.2) |
Interest expense related to fleet operating leases (estimated) |
(40.7) |
(41.3) |
|
(40.7) |
(17.6) |
|
(17.6) |
(18.3) |
Net fleet financing expenses |
(49.3) |
(49.3) |
|
(49.3) |
(33.1) |
|
(33.1) |
(34.5) |
Total Fleet financing |
(90.0) |
(90.6) |
|
(90.0) |
247.4 |
|
217.6 |
241.5 |
Adjusted Corporate EBITDA |
249.1 |
287.8 |
|
329.2 |
(39.5) |
|
(10.8) |
(11.3) |
Amortization, depreciation and impairment expense |
(33.1) |
(31.7) |
|
(112.8) |
17.6 |
|
17.6 |
18.3 |
Reversal of Net fleet financing expenses |
49.3 |
49.3 |
|
49.3 |
15.5 |
|
15.5 |
16.2 |
Reversal of Interest expense related to fleet operating leases (estimated) |
40.7 |
41.3 |
|
40.7 |
241.1 |
|
239.9 |
264.7 |
Adjusted recurring operating income |
306.0 |
346.8 |
|
306.4 |
(15.5) |
|
(15.5) |
(16.2) |
Interest expense related to fleet operating leases (estimated) |
(40.7) |
(41.3) |
|
(40.7) |
225.5 |
|
224.4 |
248.5 |
Recurring operating income |
265.3 |
305.4 |
|
265.7 |
Appendix 5 – IFRS Balance Sheet
In € thousands |
At |
At |
At |
Sep. 30, |
Sep. 30, |
Dec. 31, |
|
2019 (*) |
2019 before IFRS 16 |
2018 |
|
Assets | |||
Goodwill |
1 076 727 |
1 076 727 |
1 029 845 |
Intangible assets |
1 006 383 |
1 006 383 |
986 016 |
Property, plant and equipment |
525 246 |
167 417 |
159 247 |
Other non-current financial assets |
50 349 |
50 349 |
66 012 |
Financial instruments non-current |
0 |
0 |
1 544 |
Deferred tax assets |
65 843 |
65 843 |
58 209 |
Total non-current assets |
2 724 548 |
2 366 719 |
2 300 873 |
Inventory |
34 788 |
34 788 |
26 536 |
Rental fleet recorded on the balance sheet |
3 455 057 |
3 316 218 |
2 434 448 |
Rental fleet and related receivables |
1 012 117 |
1 012 117 |
753 370 |
Trade and other receivables |
566 236 |
566 236 |
481 264 |
Current financial assets |
25 778 |
25 778 |
11 970 |
Current tax assets |
84 869 |
84 869 |
37 547 |
Restricted cash |
115 093 |
115 093 |
90 490 |
Cash and cash equivalents |
224 741 |
224 741 |
358 138 |
Total current assets |
5 518 679 |
5 379 840 |
4 193 763 |
Total assets |
8 243 227 |
7 746 559 |
6 494 636 |
Equity | |||
Share capital |
163 884 |
163 884 |
161 031 |
Share premium |
704 069 |
704 069 |
692 255 |
Reserves |
(225 560) |
(225 560) |
(165 487) |
Retained earnings (losses) |
200 637 |
209 023 |
201 417 |
Total equity attributable to the owners of Europcar Mobility Group |
843 030 |
851 416 |
889 216 |
Non-controlling interests |
613 |
613 |
651 |
Total equity |
843 643 |
852 029 |
889 867 |
Liabilities | |||
Financial liabilities |
1 601 318 |
1 601 318 |
1 740 667 |
Non-current liabilities related to leases |
300 298 |
0 |
0 |
Non-current financial instruments |
79 481 |
79 481 |
60 415 |
Employee benefit liabilities |
165 512 |
165 512 |
142 358 |
Non-current provisions |
18 645 |
18 645 |
2 925 |
Deferred tax liabilities |
165 918 |
168 718 |
173 799 |
Other non-current liabilities |
172 |
172 |
220 |
Total non-current liabilities |
2 331 344 |
2 033 846 |
2 120 384 |
Current portion of financial liabilities |
3 091 018 |
3 091 018 |
2 006 533 |
Current liabilities related to leases |
207 976 |
0 |
0 |
Employee benefits |
3 192 |
3 192 |
3 192 |
Current provisions |
229 712 |
230 132 |
220 893 |
Current tax liabilities |
80 272 |
80 272 |
23 025 |
Rental fleet related payables |
821 500 |
821 500 |
644 169 |
Trade payables and other liabilities |
634 570 |
634 570 |
586 573 |
Total current liabilities |
5 068 240 |
4 860 684 |
3 484 385 |
Total liabilities |
7 399 584 |
6 894 530 |
5 604 769 |
Total equity and liabilities |
8 243 227 |
7 746 559 |
6 494 636 |
(*) The financial statements as of September 30, 2019 are established by applying IFRS 16 (using the modified retrospective approach without restatement of the previous year).
Appendix 6 – IFRS Cash Flow Statement
In € thousands |
Nine months 2019 (*) |
Nine months 2019 before IFRS 16 |
Nine months 2018 |
|
Profit/(loss) before tax |
80 249 |
91 450 |
225 952 |
|
Reversal of the following items | ||||
Depreciation and impairment expenses on property, plant and equipment (1) |
96 021 |
16 300 |
17 642 |
|
Amortization and impairment expenses on intangible assets |
16 779 |
16 779 |
13 839 |
|
Changes in provisions and employee benefits |
10 623 |
10 623 |
3 520 |
|
Recognition of share-based payments |
1 554 |
1 554 |
1 126 |
|
Profit/(loss) on disposal of assets (2) |
(432) |
(432) |
(68 546) |
|
Other non-cash items |
5 270 |
5 270 |
1 966 |
|
Total net interest costs |
117 338 |
103 727 |
102 166 |
|
Amortization of transaction costs |
13 388 |
13 388 |
9 875 |
|
Net financing costs |
130 726 |
117 115 |
112 041 |
|
Net cash from operations before changes in working capital |
340 790 |
258 659 |
307 540 |
|
Changes to the rental fleet recorded on the balance sheet (3) |
(864 673) |
(870 369) |
(583 399) |
|
Changes in fleet working capital |
(84 235) |
(84 235) |
(139 391) |
|
Changes in non-fleet working capital |
(23 272) |
(23 272) |
(19 968) |
|
Cash generated from operations |
(631 390) |
(719 217) |
(435 218) |
|
Income taxes received/paid |
(27 341) |
(27 341) |
(25 782) |
|
Net interest paid |
(86 273) |
(86 273) |
(82 071) |
|
Net cash generated from (used by) operating activities |
(745 004) |
(832 831) |
(543 071) |
|
Acquisition of intangible assets and property, plant and equipment (4) |
(65 423) |
(65 423) |
(52 115) |
|
Proceeds from disposal of intangible assets and property, plant and equipment |
4 299 |
4 299 |
2 972 |
|
Proceeds from disposal of subsidiaries (5) |
1 499 |
1 499 |
70 000 |
|
Acquisition of subsidiaries, net of cash acquired and other financial investments (6) |
(57 265) |
(57 265) |
(10 721) |
|
Net cash used by investing activities |
(116 890) |
(116 890) |
10 136 |
|
Capital increase (net of related expenses) |
14 666 |
14 666 |
- |
|
Special distribution and dividends paid |
(39 479) |
(39 479) |
(24 229) |
|
(Purchases) / Sales of treasury shares net |
(40 965) |
(40 965) |
(28 554) |
|
Derivative instruments |
- |
- |
(6 082) |
|
Issuance of bonds (7) |
(150 000) |
(150 000) |
148 500 |
|
Change in other borrowings (8) |
1 057 382 |
1 057 382 |
442 745 |
|
Change in rental debts (9) |
(87 830) |
- |
- |
|
Payment of transaction costs (10) |
(7 495) |
(7 495) |
(8 860) |
|
Net cash generated from (used by) financing activities |
746 279 |
834 109 |
523 520 |
|
Cash and cash equivalent at beginning of period |
424 986 |
424 986 |
313 253 |
|
Net increase/(decrease) in cash and cash equivalents after effect of foreign exchange differences |
(115 615) |
(115 615) |
(9 415) |
|
Changes in scope |
- |
- |
- |
|
Effect of foreign exchange differences |
(30) |
(30) |
(1 452) |
|
Cash and cash equivalents at end of period |
309 341 |
309 341 |
302 386 |
|
Appendix 7 – Footnotes to IFRS Cash Flow Statement
(*) The financial statements as of September 30, 2019 are established by applying IFRS 16 (using the modified retrospective approach without restatement of the previous year). |
||||
(1) In 2019, the variation includes €79.7m for the depreciation of the right of use of property assets within the scope of IFRS 16. |
||||
(2) In 2018 mainly related to the profit on the sale of Car2Go. |
||||
(3) Given the average holding period for the fleet, the Group reports vehicles as current assets at the beginning of the contract. Their variations from one period to another is therefore
similar to operating flows generated by the activity. |
||||
(4) In 2019, variations are mainly related to IT developments for €37.3m and equipment renewal for €25.1m. |
||||
(5) The variation relates to the sale of the investment in SnappCar in 2019 and the sale of Car2Go in 2018. |
||||
(6) In 2019, the change is mainly related to the acquisition by the Group of its Finnish and Norwegian franchisees for €37.8m. |
||||
(7) In 2019, the change is mainly related to the issuance of €450m of Senior Notes at a rate of 4%, which mature in 2026 and the early reimbursement of €600m of existing Senior Notes, at a
rate of 5.750% that mature in 2022. |
||||
(8) In 2019, primarily related to changes in the Senior Credit Facility, Revolving Credit Facility and Commercial Papers for €921m. |
||||
(9) In 2019 and following the implementation of IFRS 16, the variation includes (€2.3)m due to changes in liability under the fleet lease agreements and (€85.5)m due to changes in liability under non-fleet lease agreements. |
||||
(10) In 2019, the variation is primarily due to transaction costs, of which (€4.7)m relate to the new issuance of Senior Notes for €450m and the renewal of the Revolving Credit Facility for (€2.4)m. In 2018, payment of transaction costs including €(4.2)m related to SARF, €(0.2)m of initial costs related to the revolving credit facility, €(1.3)m related to the bridging loan, €(0.6)m related to the new €150m bond issue and €(2.6)m related to other loans. |
Appendix 8 – Corporate net debt
Excl. IFRS16 | Excl. IFRS16 | |||
€million |
Pricing |
Maturity |
Sep.30, 2019 |
Dec. 31, 2018 |
High Yield Senior Notes (a) |
4.125% |
2024 |
600 |
600 |
High Yield Senior Notes (a) |
4.000% |
2026 |
450 |
600 |
Senior Revolving Facility (€650m) |
E+250bps (b) |
2022 |
467 |
230 |
FCT Junior Notes, accrued interest not yet due, capitalized financing costs and other |
(403) |
(257) |
||
Gross Corporate debt |
1 114 |
1 173 |
||
Short-term Investments and Cash in operating and holding entities |
(263) |
(377) |
||
CORPORATE NET DEBT |
851 |
795 |
Appendix 9 – Fleet Debt
€million | Pricing | Maturity | Sep.30, 2019 | Dec. 31, 2018 |
High Yield EC Finance Notes (a) |
2.375% |
2022 |
500 |
500 |
Senior asset revolving facility (€1.7bn SARF) (c) |
E+130bps |
2022 |
1 365 |
557 |
FCT Junior Notes, accrued interest, financing capitalized costs and other |
|
|
410 |
252 |
UK, Australia and other fleet financing facilities |
|
Various (d) |
1 303 |
1 265 |
Gross financial fleet debt |
|
|
3 578 |
2 574 |
Cash held in fleet financing entities and Short-term fleet investments |
(129) |
(127) |
||
Fleet net debt |
|
3 448 |
2 447 |
|
|
|
|
|
|
Liabilities linked to fleet lease (*) |
148 |
129 |
||
|
|
|
|
|
TOTAL FLEET NET DEBT (incl. leases) |
|
3 596 |
2 576 |
|
(*) After implementation of IFRS16 as of January 1st, 2019 |
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