Financial Results Q4 & FY 2018 VFinale...13 March 2019 FY & Q4 2018 Financial Results 4 FY 2018...

Financial Results FY & Q4 2018

13 March 2019

13 March 2019 FY & Q4 2018 Financial Results 2

Loxam in a nutshell

Contribution to revenue

Branches31 December 2018

Brief description

Brands

Key financial data*31 December 2018

Number of branches: 417

Equipment for construction, industries, landscaping, local authorities and services

Total revenue: €659mEBITDA: €225m (34% margin)


Specialist equipment such as aerial work platforms, generators, portable accommodation, heavy equipment forcivil engineering



Generalist and specialist branches in 13 European countries, the Middle East, Morocco, Brazil and Colombia


Key figures Generalist France Specialist France International division

Divisions

Group Revenue* Group EBITDA*

€1,489m €503m

44%

15%

41%

*: FY 2018, pro forma for the acquisitions of Nove and NVA. No impact of UK Platforms acquisition

FY & Q4 2018 Financial Results13 March 2019

Business OverviewStéphane HENON


FY 2018 highlightsRevenue of €1483m, growing by 8%, (+4% like-for-like and at constant FX)EBITDA of €501m, +8% (+4% l-f-l and at constant FX)Stable EBITDA margin of 34%

Net debt to proforma EBITDA: 4.24xContinued favorable market conditions throughout the year

Integration of 2017 acquisitions completed

Q4 2018 highlightsRevenue growing by 5%(+2% l-f-l and at constant FX)Lower fleet capital gains

+€41m Free cash flow before M&A

Q4 & FY 2018 HighlightsSatisfactory performance along the year


Robust and steady growth in France

(a) “Like-for-like” means changes in revenues for the period indicated compared to the prior comparable period, excluding changes in the scope of consolidation and at constant exchange rates.

11%

6% 6%

12%

6% 5%7%

5%

15%

6%

10% 9%

5%3%

7%

3%

11%

4%6%

8%

4%5%

-1% -1%

Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18

Generalist France Specialist France International

Revenue Quarterly Change (Y to Y) Like-for-Like (a)


Q4 EBITDA impacted by end -of-year adjustments

(a) “Like-for-like” means changes in EBITDA for the period indicated compared to the prior comparable period, excluding changes in the scope of consolidation, and; as from Q1-2018 at constant exchange rates

27%

10%

-1%

15%

8%

5%

20%

1%

31%

0%

11%

19%22%

12%14%

11%

25%

-10%

-14%

12%

-1%

13%

9%

-11%

Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18Generalist France Specialist France International

EBITDA excl. fleet gains Quarterly Change (YtoY) L- f-L (a)

At constant FX


Generalist FranceRobust revenue and EBITDA growth

Q4 Revenue up by 5.3%

Q4 EBITDA impacted by lower fleet gains and profit-sharing scheme

Ramp-up of Grand Paris projects

Key Figures

FY 2017 FY 2018

Revenue € 623m € 659m

Revenue evolution +5.8%

EBITDA € 213m € 225m

EBITDA margin 34.3% 34.2%

Nb of branches (31 Dec) 419 417

Headcount (31 Dec) 3 485 3 556

Share of 2018 group revenue

45%


Specialist FranceStrong improvement of profitability

Q4 Revenue up by 3.2%

Q4 EBITDA margin excl. fleet gains up by 1.5 pts

Market share gains for LoxamPower and Loxam Module

Key Figures

FY 2017 FY 2018





Nb of branches (31 Dec) 79 80

Headcount (31 Dec) 769 757


15%


InternationalIntegration of 2017 acquisitions completed

Q4 Revenue : -1.3% l-f-l and at constant FX

Q4 EBITDA margin down, due to lower capital gains and Middle East

Closing of UK Platforms acquisition in January 2019

Key Figures

FY 2017 FY 2018





Nb of branches (30 Sept) 257 261

Headcount (30 Sept) 3 625 3 601


40%


Main business achievements of 2018

Safety Priority Focus on staff and client safety

Internal safety challenge

Digital Transformation Deployment of digitalised operational processes and customer facing applications

Customer Focus Loxam France designated ‘best client service’ for the second year in a row

Operational Integrations Legal and operational merger of 2017 acquisitions completed in France, the UK and Spain

Corporate Social Reponsability Full compliance with GDPR and anti-corruption new regulations


Fleet capex adapted to market trend

Q4 Fleet gross capex: €84m (vs.€82m in Q4 2017)

Q4 2018 Fleet disposal (GBV): €59m (-47% vs. Q4 2017)

Fleet: +5% during FY 2018

246

400

192

373

Gross book value ofdisposed fleet equipment

Fleet Capex

FY 2017 FY 2018

€m


Financial ResultsPatrick BOURMAUD


Fourth Quarter 2018 P&LSatisfactory EBITDA despite lower capital gains

Q42017

Q42018

Q4-18 / Q4-17 Var.

L-f-L (a)

var

Revenue € 368m € 388m +5% +2%

EBITDA € 135m € 129m (5)% (7)%

EBITDA margin 37% 33% (3.5)pts (3.3)pts

EBIT € 73m € 52m (29)% -

EBIT margin 20% 13% (6.5)pts -

Net Financial Expense €(27)m €(25)m (9)% -

(a) “Like-for-like” means changes for the period indicated compared to the prior comparable period, excluding changes in the scope of consolidation and at constant exchange rate.


FY 2018 P&LSolid performance

FY2017

FY2018

FY-18 / FY-17 Var.

L-f-L (a)

var

Revenue € 1 368m € 1 483m +8% +4%

EBITDA € 464m € 501m +8% +4%

EBITDA margin 34% 34% (0.2)pts +0.2 pts

EBIT € 226m € 213m (6)% -

EBIT margin 16% 14% (2.1)pts -

Net Financial Expense €(117)m €(102)m (13)% -

(a) “Like-for-like” means changes for the period indicated compared to the prior comparable period, excluding changes in the scope of consolidation and at constant exchange rate.


EBITDA BridgeStrict control of operating costs

464

50134

(7)

1

(10)

18

300

350

400

450

500

550

EBITDA31/12/17

Gross margin Staff costs Other operatingcosts

Net gains onfleet disposals

Change inperimeter

EBITDA31/12/18

31/12/18 EBITDA Bridge at constant perimeter €m


Stable Trade WCR

167

195187 186 192 191

204195

12%

14.7%14%

13%

13%

13%14%

13%

March 17 June 17 Sept. 17 Dec. 17 March 18 June 18 sept-18 déc-18

Trade WCR - €m (a) Trade WCR in % of pro forma LTM Revenue

Quarterly Trade Working Capital Requirement

Trade WCR = WCR relating to business and income tax (excluding WCR related to fixed assets)


Cash Flow GenerationPositive free cash flow during a year of growth

(€m)Q4

2017Q4

2018FY

2017FY

2018EBITDA before capital gains on disposal and other items 113 117 412 458

Proceeds from disposals of fixed assets 25 18 67 63

Gross capital expenditure (92) (97) (433) (412)

Other operating expenses (0) (0) (1) (0)

Financial income and expense (22) (23) (90) (94)

Income tax (3) (2) (18) (9)

Change in trade WCR 5 11 (14) (8)

Change in WCR relating to fixed assets 9 17 27 5

Recurring Free cash flow 34 40 (51) 2

Non recurring items(1) 2 1 (71) 8

Free cash flow 36 41 (121) 11

Acquisitions / disposals and FX impact (53) 1 (839) (13)

Dividends, share capital increase / (decrease) 0 0 (14) (7)

HY cost amort and redemption (1) (1) (5) (5)

Change in net debt (18) 41 (980) (15)

(1) FY 2017 non-recurring items: €24m of deposits on future capex , €24m of WCR increase related to Lavendon take-over, €6m of excess income tax deposit€14m of bridge facility fees and €3m of HY bond partial redemption premium; €8m of advisory cost and taxes on Lavendon take-over less of €8m of income taxFY 2018 non-recurring items: €11m decrease of deposits paid in 2017 for future capex, €2m HY bond partial redemption premium, €2m of M&A related costs.


Leverage ratio0.2x decrease during FY 2018

952 1 0251 141

2 121 2 1363.68x

3.49x

3.73x

4.43x4.24x

2014 2015 2016 2017 2018

Net DEBT Leverage

Leverage: Net debt to proforma EBITDA (€503m in 2018)


Debt maturity profile as of 31/12/18

250300250300

225

239192 152

125

85

148

2019 2020 2021 2022 2023 2024 2025

704 €m Bilaterals and financial leases

239 €m Senior Secured Notes

225 €m Senior Subordinated Notes




250 €m Senior Subordinated Notes

Debt maturity profile (in €m)

144 €m Cash and Cash Equivalents

75 €m RCF (undrawn)


Market Update & RoadmapGérard DEPREZ


ConstructionFavorable environment overall

Source: Euroconstruct, IHS – December 2018(a) Weighted average of Bahrain, Oman, Qatar, KSA, Koweït and UAE(b) Average growth rate of the European countries where Loxam operates, weighted by revenue

(a)

3.2%1.1% 0.7%

France

-0.8%

1.3%2.7%

UK

2.7% 2.6% 2.2%

Denmark

6.3%4.6% 3.7%

Netherlands

5.7% 4.5%3.0%

Spain

2.5%4.7% 5.0%

Middle East

-1.7%

1.6%3.6%

Brazil

1.3% 0.1%

-0.6%

Germany

1.7% 2.1% 2.0%

Italy

2018E 2019F 2020F

3.0%1.7% 1.4%

Loxam European markets(b)


French ConstructionContinued growth fuelled by civil engineering

2018 Estimates 2019 Forecasts

Sources : Euroconstruct, FFB, FNTP

+2.3%

+5.6%

+3.0%

Res & Non Res Civil Engineering Total Construction

+2.6%

+7.0%

+3.5%

-0.5%

+3.0%

+0.2%

Res & Non Res Civil Engineering Total Construction

+0.2%

+4.4%

+1.1%


Continued confidence in French construction environment

Revenue organic growth

Lower capex

Continuation of deleveraging towards 4x

Roadmap 2019

Financial Results Q4 & FY 2018 VFinale...13 March 2019 FY & Q4 2018 Financial Results 4 FY 2018...

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