investor presentation · this presentation does not constitute or form part of and should not be...

Investor Presentation

September 08 2020

Goldman Sachs

EMEA Leverage Finance Conference

September 2020

08 September 2020Goldman Sachs

EMEA Leverage Finance Conference 20202

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Presenting today

Patrick Bourmaud

Chief Financial Officer

Stéphane Hénon

Managing Director

Laurent BERTRAND

Finance Director

Goldman Sachs

EMEA Leveraged Finance Conference

08 September 2020

Loxam in a nutshell



Loxam in a nutshellEurope’s #1, World’s #4 equipment rental company

#1European equipment

rental player

#4Worldwide equipment

rental player

€2.3 bnFY 2019 PF revenue

30Presence in 30

countries

11,400Staff

1,069Branches

350,000Customers

550,000pieces of

equipment

72,000powered access

units

Goldman Sachs


08 September 2020

Equipment Rental

Market



End MarketsMostly construction, but not only

58%

42%

Non Construction

Construction

Building construction / Civil engineering

Industrials

Services

Local authorities

Events & Media



Equipment rental vs. Construction correlation

Equipment rental trend anticipates construction cycle

-15%

-10%

-5%

0%

5%

10%

15%

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Construction Rental



Construction forecasts

Sharp drop in 2020 in Western and Southern Europe

Source: Euroconstruct (August 2020)

3%

-9%

4%

2019E 2020F 2021F

Europe (19 countries)

3%

-14%

12%France

0% -2% -3%

Sweden

-2%

0%

-4%

Finland

3%

-25%

15%UK

2%

-3%

3%Norway

4%

-15%

6%Spain

9%

-1%

0%

Denmark

3%

-7%

8%Italy

2%

-3%

1%Germany



Rental market supported by strong drivers

Increasing

equipment

rental

penetration

Flexible charge vs. capex

No maintenance cost

No disposal risk

Cost of

ownership

Health & safety norms imposing equipment

Trend to mechanise tasks

Favours powered access

Safety &

working

conditions

Equipment

Sharing /

usage

economy

Latest generation equipment

Specific machine for each job

Renting is sharing

Sustainable development



European competitive environment

Clear #1 for equipment rental

Clear #1 for powered access equipment rental

Leading positions(b)

(European players by 2019 revenue €m)

(2019, AWP fleet size in units)

Source: Company information, International Rental News ranking; Access International ranking, Loxam estimates

(a) In the powered access market

(b) By revenue

#1

#1(a)

#1

#2

#2

Benelux

#2

2 295

1 266

737 715 560 509 484 480 466 430

1 2 3 4 5 6 7 8 9 10

71 800

39 647 33 201

19 000 18 334 18 000 11 138 7 950 7 393 7 320

1 2 3 4 5 6 7 8 9 10

#1

#1

#1

#1

#1

#1

Goldman Sachs


08 September 2020

Business Overview



Generalist FranceClosely knitted network & broad equipment offer

Key data LTM

Revenue(a) € 606m

EBITDA margin(a) 38%

Nb of branches(b) 416

Headcount(b) 3,604

Share of LTM

group revenue to

30/06/20

(a) LTM 30/06/2020; (b) as of 30 June 2020

Historical business of Loxam

Local relationships critical

Broad equipment range

2 national players and multiple

regional and local players

29%



Specialist FranceBusiness units addressing specific market segments

Key data

Revenue(a) € 220m



Headcount(b) 814

Share of LTM

group revenue to

30/06/20

6 business units with dedicated

networks and management teams

Deep equipment ranges

Technical expertise critical

Competition with specialist players:

Aggreko, Algeco, Riwal

(a) LTM 30/06/20; (b) as of 30 June 2020

10%



InternationalPresence mostly in Western Europe

Key data

Revenue(a) € 1,274m



Headcount(b) 6,687

Share of LTM

group revenue to

30/06/20

Present in 30 countries

Market leader in over 10 countries

Acceleration of development in the

past 10 years

Generalist, Specialist or mixed

business units

RoW: 5% of consolidated revenue

(a) LTM 30/06/20; (b) as of 30 June 2020

61%



A comprehensive equipment fleetMaintained to the highest standard

Main equipment categories

Modulars• Modular spaces

• Containers

Building &

Others

• Concrete processing

• rucks

• Powertools

Energy• Compressors

• Generators

• Heaters & coolers

Handling • Forklift and telehandlers

Compaction• Compactors

• Rammers, rollers

Earth moving• Excavators

• Loaders, dumpers

Aerial work

platforms

• Booms, scissors

• Van mount, truck mountProcurement

Maintenance

Repair

Control

Disposal

- Recognized international brands

- Loxam specifications

- Corporate colors

- No volume commitments

- Stringent internal procedures

- Client safety first

- Regulatory safety checks outsourced

- Ensure fleet availability

- Technical decision at end of life

- Auctioneers

- Machines fully depreciated

- Stable second-hand prices

Scaffolding• Fixed scaffolding

• Mobile scaffolding

• Lifts

https://www.loxam.fr/p/echafaudage-complet-remorque/055-0030-010722

https://www.loxam.fr/p/echafaudage-complet-remorque/055-0030-010722



Branch focus

Profit centres with allocated resources

Fleet "owned" by branches

All KPIs monitored at branch level

Branches operating like their local

competitors

Support by central functions

Operational managementProfit-centres and standardised operational processes

Profit-centres Operational processes

Branches

Stringentprocesses

Ongoingstaff

training

Audit and quality

controls



Main business achievements of 2020

Digital Transformation International BU market place

Digital invoicing

Contactless payment

Punch-out with customers’ procurement

tool

Customer Focus “Best customer service 2020” award

High Net Promoter Score of 59

Development of craftsmen customer

segment

Operations Efficient management of Covid

pandemic

Integration of Stavdal and Loxam

Norway within Ramirent



MAKE OUR WIDESPREAD LOCAL PRESENCE AN OPPORTUNITY FOR THE REGIONS

SAFEGUARD SAFETY ANYTIME AND ANYWHERE

TAKE ACTION TO PRESERVE OUR RESOURCES

HELP OUR STAFF DEVELOP

LEAD BY EXAMPLE IN CORPORATE GOVERNANCE AND ETHICS

Solid CSR fundamentals based on five pilars

Goldman Sachs


08 September 2020

Financial Performance



Consistent revenue growthInternational revenue multiplied by 7x over last 5 years

Favorable long term growth pattern

Acceleration of growth at International division

650544 480 548 571 547 511 512 573 623 656 681 606

5549 117

137 138 138 143 144164

213 229 243220

143

105 106122 119 120 158 182

190

532598

1370

1274

848

698 703807 828 805 812 838

927

13681483

2294

2100

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2200

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 PF* 06/2020LTM PF*

Generalist France Specialist France International



Resilient and first class EBITDA margin

EBITDA margin consistently above 30% through the cycle

Among the highest margins of European equipment rental players

302235 234

275 274245 256 277

305

464501

850

748

36%

34% 33%34%

33%

30%32%

33% 33%34% 34%

37%36%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 PF* 06/2020LTM PF*

Post IFRS 16

*PF : pro forma for the Ramirent acquisition on a twelve months basis; EBITDA post IFRS 16 since 2019, including synergies



Capex driven by market prospects

127

210

90 85 97 98

184 173 171

246

192

252

116

194

28

96

165

127

190

234

124

198

400373

345

84

0

50

100

150

200

250

300

350

400

450

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 H1'20

Gross book value of disposed fleet equipment Fleet Capex

Gross Fleet Capex and Disposals (€m)



Free cash flow counter-cyclicality

9%

13%

3%

-18%

0%

10%

-2% -3% -3%0%

5%

9%

4%2%

-17%

( 160)

( 120)

( 80)

( 40)

0

40

80

120

160

200

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 H1 2020

YoY Revenue growth (at constant perimeter and FX) Recurring FCF (€m - RHS)

Annual revenue growth and FCF evolution since 2005



Debt leverage at 5.1x as at 30/06/20

1 099886 811 857 778 833 952 1 025 1 141

2 121 2 136

4 011 3 8013,6x 3,8x 3,5x

3,0x 2,8x 3,4x 3,7x 3,5x 3,7x4,4x 4,2x

4,7x5,1x

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 PF* 2020 LTM

Net DEBT (m€) Leverage

* 2019 Ratio calculated on 2019 EBITDA proforma for the Rarmient acquisition, including synergies

Post IFRS 16



Debt maturity profile as of 30/06/20

250

200

450

300

700

250

300250

300

7526

5050

50

48

23

719

108278

180 24851

Cash * 2020 2021 2022 2023 2024 2025 2026 2027

885 €m Bilaterals and financial leases

247 €m State-guaranteed-Loan - PGE

75 €m RCF

300 €m Senior Secured Notes



250 €m Senior Subordinated Notes






Debt maturity profile (in €m)

* net of Ramirent's commercial papers of 107M€



Revenue of €927 m, -17%, (at constant perimeter and FX)

EBITDA of €305m, -22% (at constant perimeter and FX)

EBITDA margin of 33%

Positive free cash flow of €181 m

Net debt to proforma EBITDA: 5.08x

H1 2020 Financial highlights

Goldman Sachs


08 September 2020

Roadmap



Construction markets may not recover pre-crisis level

Strict monitoring of expenses and capex

Continued positive free cash flow

Roadmap H2 2020

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