TOUAX : Annual report TOUAX Highlights 2023

Highlights

2023

TOUAX ECOSYSTEM

TOUAX AT THE HEART

OF REAL ECONOMY, INFRASTRUCTURE AND SUSTAINABLE TRANSPORT

CONTAINERS

1st leasing company in Europe

and 7 th in the world

3rd in the world in terms of assets managed

---------------------------

327,922 containers

(twenty-foot equivalent)

--------------------------

CONTAINERS transport

compared to road transport:

7 g CO2 / tonne-kilometer*(by sea)

--------------------------

FREIGHT RAILCARS

2nd lessor in Europe

on the intermodal market

and 2nd lessor in India

-------------------------

13,191 railcars

(platform equivalent)

-------------------------

RAILCARS transport

compared to road transport:

24 g CO2 / tonne-kilometer*

-------------------------

RIVER BARGES

*vs. 137g CO2/tonne-kilometer for road transport Source: European Environment Agency 2020.

1st lessor in Europe

and South America

---------------------------

107 barges

----------------------------

RIVER BARGES transport

compared to road transport:

33 g CO2/tonne-kilometer*

---------------------------

ASSET MANAGEMENT

€1.2 bn

in assets under management, of which €586m on behalf of third parties

Touax enables qualified and professional investors seeking diversification to invest directly or indirectly in sustainable transport equipment for leasing, providing stable yields.

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2 - Touax Highlights 2023

MESSAGE FROM THE DIRECTORS

DEAR SHAREHOLDERS,

CUSTOMERS AND PARTNERS

• 2023 was a milestone year for Touax with two important anniversaries: 170 years since the Group was founded and the 40th birthday of its container

management platform. Building on its long experience and diversified business model, Touax pursues its strategy and continues to roll out its operational leasing solutions for sustainable transportation, with a unique expertise in rail, river barges

and intermodal transport.

-

Fabrice Walewski and

Raphaël Walewski, Managing Partners

-

Touax's activities should keep benefiting from the growing awareness of major industrial and large logistics groups on the need to decarbonise their transport activities (responsible for 30% of global CO2 emissions). The Group supports the European ambition to reach climate neutrality by 2050 (The European Green Deal) by offering low-carbon way of transportation to its customers. Touax provides intermodal alternatives to road transport, combining rail and river transport, as well as long-distance containerised bulk transport. Our activities are fully in line with the green transition.

In 2023, Touax strengthened its CSR commitment

by setting up a solid governance structure with a CSR Committee within the Supervisory Board and by implementing an ambitious roadmap. The Group joined the United Nations Global Compact Initiative and

implemented a Green Finance Framework linked to the European taxonomy, easing access to "green" financing. We adopt a sustainable financing strategy, by indexing the cost of Touax's financial debt

to various CSR criteria. 75% of the Touax Group's financings now contain an ESG label.

The latest extra-financial rating published by EcoVadis on 31 October 2023 demonstrates this commitment. Touax was awarded the EcoVadis

2023 Gold Medal and now belongs to the top 5% of companies in all sectors. Touax, whose stock is listed on Euronext, also improved its CSR EthiFinance rating (ex-Gaia Research) for

the second consecutive year.

Despite several economic challenges faced in 2023 (inflation, interest rate rising, faltering post-Covid global recovery), the strength of the business model with a global implementation and diversification of activities enables Touax to reduce the impact of economic cycles. This solidity was confirmed by resilient operating performance in 2023, despite the container business normalisation. The sea transportation market adapts quickly to international trade evolution and witnessed a rebalancing in 2023, after the excesses in 2021 and 2022 that led to supply chain congestions and peaks in demand. EBITDA from the other transport activities (freight railcars and river barges) increases during the year, validating our diversified investment strategy in real assets linked to global transport infrastructures.

"End-2023, for its second extra-financial CSR rating, Touax was awarded the EcoVadis 2023 Gold Medal and now belongs to the top 5% of companies in all sectors. This rating demonstrates Touax CSR commitment to a low-carbon economy."

Raphaël Walewski

3 - Touax Highlights 2023

MESSAGE FROM THE DIRECTORS

A YEAR MARKED BY OUR 170TH ANNIVERSARY

In 2023 Touax celebrates its 170th anniversary and the 40th anniversary of its Containers division. The Group was created in 1853 under the name "Compagnie de Touage de la Basse Seine et de l'Oise" to exclusively and under government licence operate river transport on the Seine and Oise. The name Touax comes from the word "touage" and this story illustrates our passion for infrastructures and logistics sectors.

Touax's container management platform was founded in San Francisco in 1983 and has today an approximate fleet of 327,900 containers and more than 1,000 leasing and trading customers.

SCAN THIS QR CODE

to see the Group's

170 years video

The Modular Building activity had an excellent year in 2023. Touax produced and delivered a large number of orders received at the start of 2023, after the low point in 2022 when the pandemic ended (i.e worksite bungalows related to infrastructure projects, schools and emergency buildings after the earthquake in Morocco in September 2023). This ancillary activity, not linked to sustainable transport, remains well positioned for 2024.

During the FY2023, several financing transactions were closed at the Group level (repayment of the Euro-PP Loan maturing in July 2023; refinancing of the disintermediated loan of 40 million euros maturing in June 2024 by a club deal loan) and divisions' level (renewal of the Freight Railcar Capex line with a Green Loan structure; increase of the Container revolving facility) to finance new investment for Touax's future growth. These operations demonstrate the confidence of lenders (banks and investors).

As of December 31st, 2023, Touax manages

€1.2 billion of transport equipment, of which 52% in ownership and 48% managed on behalf of third-party investors.

The Group's 2023 results show an EBITDA of

€55.3 million and a net profit (Group share) amounting to €3.6 million. The book value per share decreased to €10.95 compared to €12.94 in 2022, mainly due

to non-operational accounting factors (transfer

of negative minority interests to the Group reserves following the purchase of minority interests in the Modular Construction business; reduction in conversion adjustments on dollar reserves following the fall in the US dollar).

The net asset value per share amounts to €20.59 on December 31st, 2023, given the asset value of owned assets (positive effect of the inflation). The Group returned to a dividend payout policy in 2023 and intends to maintain it in 2024 and beyond.

What is the outlook for 2024 ?

We have to remain cautious with the current economic challenges: uneven growth by geographical area, high interest rates, major geopolitical risks. Despite turbulences, trade volumes remain at

a satisfactory level* and the year-end utilisation rates (88% for freight railcars, 100% for river barges and 97% for containers) demonstrate the resilience of the economies and markets where the Group operates.

Needs of fleet renewal and fleet modernization are also very high, particularly as part of our customers objectives for reducing CO2 emissions. The flexibility provided by our leasing solutions is sought by our clients. The inflation and the normalisation of demand led to price falls in certain sectors, opening investment opportunities.

As a result, we decided to increase our investment capacity to €250 million in 2024, to better support its customers. The Group signed exclusive agreements with funds specialized in tangible assets and infrastructure, which have pledged to invest more than €100 million in equity alongside the Group.

We thank our customers and partners for their trust and loyalty, and all the Touax teams for the work they have done.

The Managing Partners

"2023 witnessed the normalisation of the containerised traffic after the peak of 2021 and 2022. Demand is expected to return in 2024 (+5.5%*). Container's EBITDA decreased in 2023, but was compensated by the increase of the EBITDA from the other divisions, validating our diversified investment strategy in real assets linked to global transport infrastructures."

Fabrice Walewski

(*) Clarkson's forecast, January 2024: Growth in% of containerised traffic (TEU-miles): +1.6% in 2023; forecast at +5.5% in 2024 (of which 2% linked to Red Sea rerouting).

4 - Touax Highlights 2023

PROFILE

FREIGHT

RAILCARS

2nd lessor in Europe

on the intermodal market

and 2nd lessor in India

RIVER

BARGES

1st lessor in Europe and South America

CONTAINERS

1st leasing company in Europe and

7th in the world

ASSET

MANAGEMENT

+25 years

of proven experience in managing real assets on behalf of investors

YOUR LEASING

SOLUTION FOR

SUSTAINABLE

TRANSPORT

Touax has supported its customers by providing them with sustainable means of transport: intermodal containers, freight railcars and river barges. Located at the heart of global goods flows and trade, Touax offers tailor-made solutions for the leasing and sale of eco-responsible transport equipment, in order to continuously meet the expectations of its customers in a low-carbon economy.

Touax in figures

246

employees

€157.1 m

in restated revenue

€1.2 bn

assets under management

80%

recurring leasing income

5 - Touax Highlights 2023

KEY EVENTS

In 2023, the Touax Group celebrates 170 years of existence… and

the 40 years of the Containers Division!

The Group has a	Touax became
170-year history	a direct operational
in the transport	lessor by buying
equipment leasing	Gold Container
sector serving	Corp now renamed
sustainable	Touax Container
transport, and	Leasing. These
Touax has never	activities are at the
stopped reinventing	heart of the real
itself.	economy and
Touax also bet on	transport as more
than 53% of world
the growth of
goods (in value) are
international trade
now containerised,
and invested in its
either for regional or
first shipping
international traffic.
containers.

Dividend payout,

a performance indicator

The Group returned to a dividend payout policy in 2023 and intends to maintain it in 2024 and beyond.

Confirmation of

the Touax's CSR

roadmap

Touax has confirmed its CSR commitment by implementing various initiatives:

• • Second carbon footprint assesment
• Renewal and improvement of its EcoVadis and EthiFinance extra-financial ratings
• Joining the United Nations Global Compact Initiative
• • Green Finance Framework implementation

6 - Touax Highlights 2023

Main financing operations for Touax SCA and the divisions

Major financing operations were carried out at Group and divisions' level:

Touax SCA has improved its debt profile by extending the maturity of its financing:

• In June 2023, the Group
  repaid €15 million Euro-PP loan maturing in July 2023 and issued a €5 million new tranche on the 2022 sustainable-linkedEuro-PP bond (maturing in June 2027);
• Refinancing in July 2023 of the disintermediated loan of €40 million from a debt fund by a bank loan for the same amount maturing in May 2027, in the form of a club deal with a syndicate of five banks.

The Capex lines of the Freight Railcars and Containers divisions were both renewed or increased with respective amounts of €40 million and

$15 million.

BUSINESS MODEL

MISSIONUN MODÈLE- VISIOND'AFFAIRES- MODEL

PÉRENNE, ENGAGÉ

---- Touax pursues a profitable and eco-responsible investment policy in the operationalAUleasing ofSERVICEsustainable transport assetsDES(freight railcars, river barges and containers) based on the strengths and expertise it has built up over

TRANSPORTStime. Completely focused on its service missionDURABLESand mindful of the environmental challenges of international transport, Touax optimally integrates the objectives of sustainable development with the needs for transport equipment to best serve its customers by offering them a multitude of services relating to its assets (leasing, sale, maintenance management, etc.) with the common goal of a low-carbon economy.

Mission	Vision
We supply high-quality, standardised, sustainable	We aim to become a world leader in the leasing
transport equipment to facilitate and support	of transport equipment and aspire to create
the growth of trade, help companies minimise their	a greener future for the next generations.
environmental impact and support a low-carbon
economy, for a prosperous and long-term
sustainable society.

ACTIVITY

Standardised and mobile equipment

-

Long-life assets

(30-50 years)

-

Low obsolescence generating high residual value

-

Multi-year leasing contracts

(3-10 years)

LEVERS

Balanced risk management

(owned vs. managed

activities)

•

Geographically

diversified markets

•

• Strong competitive position in all of its business sectors
  •

Recurrent revenue

and cash-flow

CREATED VALUE

Economic

80%

of leasing revenue is recurrent

Societal

• Sustainable transport in a low-carbon economy
  -
  Shareholder Stable financial performance that creates value over time*

* Higher net asset value per share and dividend payment.

7 - Touax Highlights 2023

BUSINESS MODEL

Operational excellence

• Touax aims for operational excellence through a policy of continuous improvement based on Lean Management methods.

"There is no limit to how far we can

go to improve ourselves and the satisfaction of our customers. We are improving every day."

Thierry Schmidt de la Brélie,

Managing Director

Administration & Finance

MARKET SIZE

A PASSION FOR

€200 bn

"GREEN" ASSETS

supported by consumers,

driven by global trade and

manufacturers, public authorities,

lenders and investors

A deep-

the growth of e-commerce

rooted and

→

well-oriented

ANNUAL INVESTMENT REQUIREMENT

market

Containers

Railcars

Barges

€7

bn

€1 bn

€0.5 bn

Touax's

advantages:

A diversified customer offer based on a top level global network

A proven commercial agility and renowned dominant position

A long-term relationship of trust with customers, partners and investors

8 - Touax Highlights 2023

CORPORATE SOCIAL RESPONSIBILITY

TOUAX, AT THE HEART OF THE LOW-CARBON TRANSPORTATION

Touax offers its customers sustainable transport solutions that represent a competitive advantage in terms of decarbonisation.

Touax is, by its very nature, at the heart of the functional economy with a leasing activity that encourages the reuse of assets. Our equipment is environmentally friendly by promoting low-carbon transport, and is almost entirely recyclable at the end of its life, since it is primarily made

from metal.

This means that Touax contributes to developing alternatives to road transport with its freight railcars, river barges and containers activities. By using our equipment, our customers can achieve significant CO2 emissions reduction, which they can measure efficiently. With the calculator www.ecotransit.org, our customers can measure and compare CO2 emissions to road usage, depending on their traffic and tonnes transported.

AT THE END OF THE LIFECYCLE

Useful economic life:

30-50 years

• 100% recyclable (steel, aluminium, wood)

Barges are cleaned, dismantled and taken apart (i.e broken down into pieces) by approved companies.

Useful economic life:

• 50 years
• 95% recyclable (steel, wood)

After a useful economic life of

20 years for sea transportation:

• 80% are re used for inland purposes (housing, storage...),
• 20% are scrapped for spart parts or recycled.

Useful economic life:

30-50 years

• 100% recyclable

Railcars are dismantled and the steel is recycled.

Touax uses the spare parts for maintenance.

9 - Touax Highlights 2023

CORPORATE SOCIAL RESPONSIBILITY

A reinforced commitment to sustainable transport

During the year, Touax strengthened its CSR commitment by establishing a solid governance within the Supervisory Board.

New actions have been taken to lead Touax's activities, based on several CSR criteria:

• Joining the United Nations
  Global Compact Initiative

• Release of the second carbon footprint evaluation
• Initiation of Quality of Life at Work,
  Anti-Corruption and Sustainable Procurement working groups
• Implementation of a Green Finance Framework linked to the European taxonomy to support Touax's green financing

To find out more about our achievements and ambitions, we invite you to read our

Corporate Social Responsibility brochure.

FOCUS ON 3 INITIATIVES

1. sustainable financing strategy

End-2023,

75%

of the Touax Group's financing now contains an ESG label.

Touax takes advantage of

its exceptional position at the heart of the real economy and eco-responsible transport. With the Green Finance Framework, the Group links its financing strategy to sustainable performance indicators:

Touax joined the UN global

Compact Initiative

Touax has always been committed to social and environmental responsibilities, aligned with the core values of the United Nations and the 10 universally accepted principles in the areas of human rights, labour, environment and anti-corruption. Being a participant of this initiative

is a significant milestone in our journey towards a more sustainable world. The Group commits to communicate regularly on its progress in this area.

Touax improved its extra-financial ratings

• During the first semester 2023, all tranches of the July 2022 facilities agreement for its Containers business have been qualified as Sustainability- linked loan. Cost of debt is now indexed to changes in Touax's EcoVadis ESG rating.
• In October 2023, all tranches of Touax Rail's first secured facility agreement (dating December 2020) have been qualified as Green Loans.

ECOVADIS 2023 GOLD MEDAL FOR ITS SECOND EXTRA- FINANCIAL RATING

For its second extra-financial CSR rating carried out by EcoVadis* in November 2023, Touax got an excellent score

of 72/100.

Touax is now part of the top

top 5% of companies with the best ratings across all business sectors.

ETHIFINANCE

Touax, SME listed on Euronext, also improved its EthiFinance*

ratings for the 2nd year in a row, with a final score of 70/100 (vs. 64/100 in 2022).

• The EcoVadis extra-financial rating assesses the company's main CSR impacts according to four themes: Environment, Social & Human Rights, Ethics and Responsible Purchasing.
• Ethifinance Rating: listed company assessment according to a benchmark of approximately 140 criteria
  divided into 4 areas: Environment, Social, Governance and External Stakeholders.

10 - Touax Highlights 2023