EUROPCAR MOBILITY GROUP S.A. Press Release | Paris - October 28th, 2021 |
THIRD QUARTER 2021 RESULTS
PERFORMANCE ABOVE EXPECTATIONS, DUE TO STRUCTURAL MEASURES AS WELL AS FAVOURABLE
CONJUNCTURAL BUSINESS ENVIRONMENT
RECORD CORPORATE EBITDA MARGIN AT 27.4 %
RAISED AMBITIONS FOR 2021
Q3 2021 AND FIRST 9M 2021 HIGHLIGHTS
- Revenue over the first 9 months 2021: up +20%1 to €1,625m, with a rebound of +45%1 in Q3 2021 driven by a solid performance in Leisure, low-cost segment in particular, with high RPD2
- Q3 2021 revenue at €782.6m: close to Q3 2019 level, reducing the gap month by month
- Strong rebound in Corporate EBITDA3 to €215m in Q3 2021 with record margin of 27.4% (21.9%1 in Q3 2019)
- Reduction in Corporate net debt at end September vs June 2021: €211m vs €266m respectively, thanks to high Corporate Operating FCF conversion (40%) and seasonality effect. Reduced Corp. liquidity to €372m from €447m
- Successful fleet debt refinancing for a total of €2.2bn with sustainability-linked bond issuance & SARF re- engineering
OUTLOOK FOR 2021 AND MID-TERM TRAJECTORY
-
The Group is raising its ambitions for FY2021 earnings compared to previous communication thanks to higher- then-expected Q3 2021 performance, with a particularly strong month in September and an anticipated continued robust business trend through year-end, and assuming no additional lockdown:
o Corporate EBITDA pre-IFRS 16 above €150m versus "above €110m" (compared to -€276m in 2020 and €278m in 20194)
o Corporate net debt expected in the range of €250-300m versus €300-350m - The Group is confident in the long-term prospects of the business, relying on structural gains from Reboot and ongoing Connect transformation roadmap, but expects some significant mid-term headwinds in 2022:
o While pricing momentum is expected to remain positive, volumes will be constrained by continuing market fleet shortage
o In the context of this shortage, higher fleet cost per unit is expected as well as higher cash consumption as the Group searches for alternative sources of vehicles
o Significant levels of inflation are also being seen across some other cost lines
UPDATE ON THE TENDER OFFER
Pending the review by the French stock market authority (AMF), expected opening of the proposed tender offer (projet d'offre publique d'acquisition) filed on September 20, 2021 by the consortium led by Volkswagen5 for the Company's
- Proforma basis: at constant exchange rate and perimeter
-
RPD (revenue per transaction day): corresponds to rental revenue for the period divided by the number of rental days for the period
3 Post-IFRS 16
4 2019 PF (pro-forma) Corp. EBITDA pre-IFRS 16 of €0.26bn refers to full year inclusion in 2019 of Fox Rent-a-Car and Finland and Norway franchisees
5 Through Green Mobility Holding SA, a special-purpose company controlled by the consortium led by Volkswagen Group, and also composed of Attestor Capital LLP and Pon Holdings BV
1
shares in the course of Q4 2021 and completion of the offer (subject to certain antitrust clearances) in the course of Q1 20226
Caroline Parot, CEO of Europcar Mobility Group, declared:
"Despite a slow start of the year due to COVID, the Group has achieved great performance, starting from May and over the 3 last months, which leads us to upgrade our ambitions for the full year in terms of Corporate EBITDA.
We owe this performance, among other things, to our employees, who have once again demonstrated their resilience and commitment and for which I would like to thank them.
We also benefited from both structural and conjunctural factors. Structurally, we have enjoyed the benefits of our cost adaptation programme "Reboot", as well as the positive impact of our financial restructuring. Conjuncturally, we smartly leveraged the combined effects of a "post-lockdown" appetite for travel and a scarcity of supply due to the semiconductor shortage, which increased our pricing power. All of these factors have placed our Group in the best possible conditions to take full advantage of the recovery in the Travel & Leisure market.
In 2022, in a context of the lasting semiconductor crisis that makes vehicle sourcing more cash-intensive, we expect a continuing tension between supply and demand in the leisure market, that we will play with an overall focus on profitability versus volumes, while taking advantage of the gradual recovery in international traffic.
As we move forward in our "Connect" transformation, we are confident in our recovery plan positioning the Group as a strong leader in sustainable mobility solutions."
*****
Europcar Mobility Group invites you to its Q3 2021 Results Conference Call on:
Thursday, October 28th, at 6:00pm CET
Dial-in Access telephone numbers:
France : +33 (0)1 76 77 25 07
Germany: +49 (0)89 2030 35526
UK: +44 (0)330 336 9434
USA: +1 929-477-0324
Confirmation Code: 7299797
Webcast live:
You can watch the presentation on the following link: https://globalmeet.webcasts.com/starthere.jsp?ei=1500545&tp_key=b7e08fca6c
Slides related to third quarter 2021 results are available on the Group's website, in the "Financial documentation" section: https://investors.europcar-group.com/results-center
- The draft offer document of Green Mobility Holding as well as the Company's draft response document to the Offer, containing in particular the reasoned opinion of the board of directors and the report of the independent expert, have been the subject of specific press releases and are available on the AMF's website (https://www.amf-france.org/) and on the websites of the Volkswagen Group and of the Company (https://investors.europcargroup.com/tender-offer), respectively
2
KEY FINANCIALS OVER THE FIRST 9 MONTHS 2021
Q3 2021 financial results
All data in €m, except if mentioned | Q3 2021 | Q3 2020 | % Change at constant |
perimeter and currency | |||
Number of rental days (million) | 19.3 | 16.4 | 18.2% |
Average Fleet (thousand) | 268.1 | 248.7 | 7.8% |
Financial Utilization rate | 78.5% | 71.6% | |
Total revenues | 782.6 | 537.2 | 45.1% |
Adjusted Corporate EBITDA (IFRS 16) | 214.7 | 54.4 | |
Adjusted Corporate EBITDA Margin | 27.4% | 10.1% | |
Operating Income | 183.0 | 18.8 | |
Income before taxes | 148.4 | (30.5) | |
Net profit/loss | 141.5 | (9.7) | |
Corporate Free Cash Flow | 86.2 | (46.7) | |
Corporate Net Debt at end of the period | 211.2 | 1 322.1 |
NB: Average fleet and utilization rate include Urban Mobility. Historical data have been adjusted accordingly
9M 2021 financial results
All data in €m, except if mentioned | 9M 2021 | 9M 2020 | % Change at constant |
perimeter and currency | |||
Number of rental days (million) | 45.3 | 43.4 | 4.5% |
Average Fleet (thousand) | 222.1 | 266.5 | -16.7% |
Financial Utilization rate | 74.9% | 59.4% | |
Total revenues | 1 625 | 1 352 | 20.1% |
Adjusted Corporate EBITDA (IFRS 16) | 190 | (154) | |
Adjusted Corporate EBITDA Margin | 11.7% | ||
Operating Income | 93.0 | (248.4) | |
Income before taxes | 16.8 | (393.9) | |
Net profit/loss | 18.7 | (295.9) | |
Corporate Free Cash Flow | 2.4 | (342.3) | |
Corporate Net Debt at end of the period | 211.2 | 1 322.1 |
NB: Average fleet and utilization rate include Urban Mobility. Historical data have been adjusted accordingly
No change in perimeter between 9M 2021 and 9M 2020. As a reminder, the last two acquisitions were Fox Rent A Car in the US consolidated in November 2019 and franchisees in Norway and Finland in July 2019.
3
PROFIT & LOSS
Management Account presentation: accounts are presented under IFRS 16, unless explicitly mentioned
Revenue and Profit & Loss are analyzed through the evolution at constant perimeter and exchange rates. Reported changes are in Appendix.
All data in €m | Q3 2021 | Q3 2020 | % Change at constant | Q3 2019 |
perimeter and currency | ||||
Total revenue | 782.6 | 537.2 | 45.1% | 1 069.4 |
Average fleet size ('000) | 268.1 | 248.7 | 7.8% | 418.8 |
Rental days volume (in Million) | 19.3 | 16.4 | 18.2% | 30.6 |
Utilization rate | 78.5% | 71.6% | 79.6% | |
Fleet holding costs | (148.4) | (150.4) | 2.2% | (253.1) |
Variable costs | (241.2) | (175.5) | -36.7% | (346.9) |
Sales and marketing expenses | (4.8) | (1.9) | -146.7% | (7.3) |
Fleet financing costs | (31.2) | (25.7) | -20.9% | (37.5) |
Direct & variable costs | (425.6) | (353.6) | -19.6% | (644.8) |
Margin after Direct costs | 357.0 | 183.6 | 94.4% | 424.6 |
In % of revenue | 45.6% | 34.2% | 39.7% | |
Network | (73.2) | (69.2) | -5.3% | (114.0) |
HQ Costs | (69.1) | (59.9) | -13.8% | (76.0) |
Fixed & semi-fixed costs | (142.3) | (129.2) | -9.3% | (190.0) |
Adjusted Corporate EBITDA (IFRS 16) | 214.7 | 54.4 | 234.6 | |
In % of revenue | 27.4% | 10.1% | 21.9% | |
IFRS 16 impact on premises and parking | (18.5) | (18.2) | (24.3) | |
IFRS 16 impact on the fleet and financing costs & variable costs | (2.4) | (10.0) | (5.5) | |
Adjusted Corporate EBITDA excl. IFRS-16 | 193.8 | 26.2 | 204.9 | |
Depreciation - excluding vehicle fleet: | (34.2) | (42.4) | 19.8% | (40.2) |
Non-recurring income and expense | (20.2) | (9.6) | (16.0) | |
Other financing income and expense not related to the fleet | (12.0) | (32.8) | 63.6% | (22.9) |
Net financial restructuring costs | - | - | ||
Profit/loss before tax | 148.4 | (30.5) | 155.5 | |
Income tax | (6.9) | 20.7 | (42.9) | |
Share of profit/(loss) of associates | - | - | 0.1 | |
Net profit/(loss) excl. IFRS 16 | 143.2 | (8.4) | 117.3 | |
Net profit/(loss) incl. IFRS 16 | 141.5 | (9.7) | 112.7 |
4
All data in €m | 9M 2021 | 9M 2020 | % Change at constant | 9M 2019 | |
perimeter and currency | |||||
Total revenue | 1 624.5 | 1 352.0 | 20.1% | 2 510.1 | |
Average fleet size ('000) | 222.1 | 266.5 | -16.7% | 356.2 | |
Rental days volume (in Million) | 45.3 | 43.4 | 4.5% | 74.3 | |
Utilization rate | 74.9% | 59.4% | 76.6% | ||
Fleet holding costs | (386.6) | (484.0) | 20.2% | (633.1) | |
Variable costs | (550.7) | (497.9) | -10.7% | (840.8) | |
Sales and marketing expenses | (11.4) | (12.3) | 6.8% | (28.3) | |
Fleet financing costs | (77.7) | (83.8) | 6.9% | (104.1) | |
Direct & variable costs | (1 026.5) | (1 078.0) | 4.7% | (1 606.3) | |
Margin after Direct costs | 598.0 | 274.0 | 117.7% | 903.8 | |
In % of revenue | 36.8% | 20.3% | 36.0% | ||
Network | (198.5) | (222.1) | 10.2% | (332.0) | |
HQ Costs | (209.6) | (206.1) | -1.4% | (262.1) | |
Fixed & semi-fixed costs | (408.1) | (428.2) | 4.6% | (594.0) | |
Adjusted Corporate EBITDA (IFRS 16) | 189.9 | (154.2) | 309.8 | ||
In % of revenue | 11.7% | 12.3% | |||
IFRS 16 impact on premises and parking | (55.2) | (58.0) | (61.0) | ||
IFRS 16 impact on the fleet and financing costs & variable costs | (8.6) | (23.0) | (19.1) | ||
Adjusted Corporate EBITDA excl. IFRS-16 | 126.1 | (235.2) | 229.7 | ||
Depreciation - excluding vehicle fleet: | (102.5) | (119.5) | 14.6% | (115.3) | |
Non-recurring income and expense | (38.6) | (30.0) | (42.0) | ||
Other financing income and expense not related to the fleet | (54.2) | (90.1) | 39.6% | (99.5) | |
Net financial restructuring costs | 22.3 | - | |||
of w/h non-recurring impact | (13.6) | - | |||
of w/h financial result impact (IFRIC 19 & Transaction costs) | 35.9 | - | |||
Profit/loss before tax | 16.8 | (393.9) | 53.0 | ||
Income tax | 1.9 | 98.0 | (20.5) | ||
Share of profit/(loss) of associates | - | - | - | ||
Net profit/(loss) excl. IFRS 16 | 23.5 | (291.7) | 43.6 | ||
Net profit/(loss) incl. IFRS 16 | 18.7 | (295.9) | 32.4 |
Constant perimeter includes Fox consolidated in November 2019 & franchisees in Finland and Norway in July 2019. Variable costs: Revenue related costs, rental related costs, fleet operating costs and others
Average fleet and utilization rate include Urban Mobility. Historical data have been adjusted accordingly.
5
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original document
- Permalink
Disclaimer
Europcar Mobility Group SA published this content on 28 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 October 2021 16:02:04 UTC.
