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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)
Number of branches: 80
Specialist equipment such as aerial work platforms, generators, portable accommodation, heavy equipment forcivil engineering
Total revenue: €227mEBITDA: €77m (34% margin)
Number of branches: 261
Generalist and specialist branches in 13 European countries, the Middle East, Morocco, Brazil and Colombia
Total revenue: €603mEBITDA: €195m (32% margin)
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
13 March 2019 FY & Q4 2018 Financial Results 4
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
13 March 2019 FY & Q4 2018 Financial Results 5
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)
13 March 2019 FY & Q4 2018 Financial Results 6
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
13 March 2019 FY & Q4 2018 Financial Results 7
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%
13 March 2019 FY & Q4 2018 Financial Results 8
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
Revenue € 213m € 226m
Revenue evolution +6.0%
EBITDA € 68m € 77m
EBITDA margin 32.1% 34.1%
Nb of branches (31 Dec) 79 80
Headcount (31 Dec) 769 757
Share of 2018 group revenue
15%
13 March 2019 FY & Q4 2018 Financial Results 9
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
Revenue € 532m € 598m
Revenue evolution +12.4%
EBITDA € 177m € 192m
EBITDA margin 33.3% 32.2%
Nb of branches (30 Sept) 257 261
Headcount (30 Sept) 3 625 3 601
Share of 2018 group revenue
40%
13 March 2019 FY & Q4 2018 Financial Results 10
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
13 March 2019 FY & Q4 2018 Financial Results 11
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
FY & Q4 2018 Financial Results13 March 2019
Financial ResultsPatrick BOURMAUD
13 March 2019 FY & Q4 2018 Financial Results 13
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.
13 March 2019 FY & Q4 2018 Financial Results 14
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.
13 March 2019 FY & Q4 2018 Financial Results 15
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
13 March 2019 FY & Q4 2018 Financial Results 16
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)
13 March 2019 FY & Q4 2018 Financial Results 17
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.
13 March 2019 FY & Q4 2018 Financial Results 18
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)
13 March 2019 FY & Q4 2018 Financial Results 19
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
300 €m Senior Secured Notes
250 €m Senior Secured Notes
300 €m Senior Secured Notes
250 €m Senior Subordinated Notes
Debt maturity profile (in €m)
144 €m Cash and Cash Equivalents
75 €m RCF (undrawn)
FY & Q4 2018 Financial Results13 March 2019
Market Update & RoadmapGérard DEPREZ
13 March 2019 FY & Q4 2018 Financial Results 21
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)
13 March 2019 FY & Q4 2018 Financial Results 22
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%
13 March 2019 FY & Q4 2018 Financial Results 23
Continued confidence in French construction environment
Revenue organic growth
Lower capex
Continuation of deleveraging towards 4x
Roadmap 2019