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Touax: RESULTS AS OF 30 JUNE 2022: Acceleration in profitability over the half-year

PRESS RELEASE         Paris, 28 September 2022 – 5.45 p.m.

YOUR OPERATIONAL LEASING SOLUTION FOR SUSTAINABLE TRANSPORTATION

RESULTS AS OF 30 JUNE 2022

Acceleration in profitability over the half-year

  • Group share of net profit: €7.6 million (x 3.8 versus June 2021)
  • EBITDA up sharply to €29.5 million (+38% year-on-year), driven by the Container and Freight Railcar activities
  • A solid financial structure: high level of equity and longer debt maturity

“The good H1 2022 results are in line with our performance at the end of 2021. The investment strategy implemented in 2021 to meet the needs of our customers made it possible to achieve a significant increase in leasing revenue in 2022. Thanks to the long-term contracts signed with its customers and the quality of the assets acquired, Touax is securing sustainable revenue over the long term and the solidity of its business model, while also validating the relevance of its long-term leasing strategy in sustainable transport,” said Fabrice and Raphaël Walewski, Managing partners of TOUAX SCA.

Touax has confirmed the strong growth in activity already seen during the first quarter of 2022. Restated revenue from activities (*) in H1 2022 came to €78.3 million (€74.1 million at constant scope and currency1), compared with €52.5 million in the same period in 2021, an increase of 49%.

Despite temporary disruptions in the global maritime freight market, the first half of 2022 saw strong business momentum once again in the Containers division, particularly in new built containers trading.

The Group saw an acceleration of its operating performance, with EBITDA of €29.5 million (+38% compared with 30 June 2021).

The Group also continued to improve its financial profile by extending the maturity of its debt and reducing its financial costs.

(*) The key indicators in the Group’s activity report are presented differently from the IFRS income statement, to enable an understanding of the activities’ performance. As such, no distinction is made in third-party management, which is presented solely in agent form.

This presentation therefore allows a direct reading of syndication fees, sales commissions, and management fees.

This new presentation has no impact on EBITDA, operating income or net income. The accounting presentation of revenue from activities is presented in the appendix to the press release.

ANALYSIS OF THE FIRST HALF RESULTS

Key figures June 2022 June 2021 Dec 2021
(in € million)
Restated revenue from activities 78.3 52.5 125.0
Of which Freight railcars 26.4 23.6 50.3
Of which River barges 7.6 5.1 12.8
Of which Containers 41.3 16.0 47.7
Of which Miscellaneous and eliminations 3.0 7.7 14.2
EBITDA 29.5 21.3 53.1
Operating income 16.6 9.3 28.7
Profit before taxes 9.8 3.4 16.8
Consolidated net profit (loss) (Group’s share) 7.6 2.0 12.6
Earnings per share (€) 1.08 0.28 1.79
Total non-current assets 353.2 342.8 358.0
Total assets 585.0 480.3 552.4
Total shareholders’ equity 170.2 145.7 165.0
Net financial debt (a) 242.2 227.4 231.6
Operating cash flow (b) 11.0 -26.4 -25.7
Loan to Value ratio (c) 56% 57% 52%
(a) including €218.3m in debt without recourse at 30 June 2022 and excluding active derivative instruments.  
(b) including €16.3m of net equipment acquisitions (€31.7m end of June 2021)  
(c) Loan to Value ratio: Ratio of consolidated gross financial debt to total assets less goodwill and intangible fixed assets

SIGNIFICANT INCREASE IN ACTIVITY IN THE 1ST HALF OF 2022

Restated revenue from activities Q1 2022 Q2 2022 H1 2022 Q1 2021 Q2 2021 H1 2021
(in € thousand)
Leasing revenue on owned equipment 15,509 16,909 32,418 13,229 13,633 26,862
Ancillary services 5,732 4,884 10,616 2,745 3,747 6,492
Total leasing activity 21,241 21,793 43,034 15,974 17,380 33,354
Sales of owned equipment 14,862 14,249 29,111 7,085 8,328 15,413
Total sales of equipment 14,862 14,249 29,111 7,085 8,328 15,413
Total of owned activity 36,103 36,042 72,145 23,059 25,708 48,767
Syndication fees 0 2,522 2,522 17 946 963
Management fees 978 986 1,964 897 891 1,788
Sales fees 336 1,349 1,685 591 358 949
Total of management activity 1,314 4,857 6,171 1,505 2,195 3,700
Other capital gains on disposals 0 0 0 0 6 6
Total Others 0 0 0 0 6 6
Total Restated revenue from activities 37,417 40,899 78,316 24,564 27,909 52,473

In a context of high asset utilisation rates, the owned activity increased by €23.4 million (+48%) thanks to:

  • growth in recurring leasing revenue (+€5.6 million) and ancillary services (+€4.1 million)
  • an increase in sales of owned equipment (+€13.7 million), particularly in the Containers division

The management activity was also up by €2.5 million, the bulk of which stemmed from the increase in syndication fees in the Containers (+€1.1 million) and Freight Railcar (+€0.4 million) activities.

ANALYSIS OF CONTRIBUTIONS BY DIVISION

Restated revenue from activities Q1 2022 Q2 2022 H1 2022 Q1 2021 Q2 2021 H1 2021
(in € thousand)
Leasing revenue on owned equipment 10,544 11,142 21,686 9,152 9,223 18,375
Ancillary services 1,858 1,177 3,035 1,873 1,724 3,597
Total leasing activity 12,402 12,319 24,721 11,025 10,947 21,972
Sales of owned equipment 110 238 348 320 403 723
Total sales of equipment 110 238 348 320 403 723
Total of owned activity 12,512 12,557 25,069 11,345 11,350 22,695
Syndication fees 0 446 446 0 0 0
Management fees 466 451 917 463 470 933
Total of management activity 466 897 1,363 463 470 933
Total Freight railcars 12,978 13,454 26,432 11,808 11,820 23,628
Leasing revenue on owned equipment 1,619 1,789 3,408 1,688 1,745 3,433
Ancillary services 1,807 2,385 4,192 683 972 1,655
Total leasing activity 3,426 4,174 7,600 2,371 2,717 5,088
Sales of owned equipment 0 0 0 41 0 41
Total sales of equipment 0 0 0 41 0 41
Total of owned activity 3,426 4,174 7,600 2,412 2,717 5,129
Management fees 14 5 19 6 6 12
Total of management activity 14 5 19 6 6 12
Total River Barges 3,440 4,179 7,619 2,418 2,723 5,141
Leasing revenue on owned equipment 3,342 3,973 7,315 2,384 2,654 5,038
Ancillary services 2,070 1,325 3,395 191 1,054 1,245
Total leasing activity 5,412 5,298 10,710 2,575 3,708 6,283
Sales of owned equipment 13,205 12,575 25,780 3,480 3,524 7,004
Total sales of equipment 13,205 12,575 25,780 3,480 3,524 7,004
Total of owned activity 18,617 17,873 36,490 6,055 7,232 13,287
Syndication fees 0 2,076 2,076 17 946 963
Management fees 498 530 1,028 428 415 843
Sales fees 336 1,349 1,685 591 358 949
Total of management activity 834 3,955 4,789 1,036 1,719 2,755
Total Containers 19,451 21,828 41,279 7,091 8,951 16,042
Leasing revenue on owned equipment 4 5 9 5 11 16
Ancillary services -3 -3 -6 -2 -3 -5
Total leasing activity 1 2 3 3 8 11
Sales of owned equipment 1,547 1,436 2,983 3,244 4,401 7,645
Total sales of equipment 1,547 1,436 2,983 3,244 4,401 7,645
Total of owned activity 1,548 1,438 2,986 3,247 4,409 7,656
Other capital gains on disposals 0 0 0 0 6 6
Total Others 0 0 0 0 6 6
Total Miscellaneous & eliminations 1,548 1,438 2,986 3,247 4,415 7,662
             
Total Restated revenue from activities 37,417 40,899 78,316 24,564 27,909 52,473

The Freight Railcars division posted an increase of 12% to €26.4 million in H1 2022:

  • The owned activity increased by €2.4 million (+10%), driven by the investment policy implemented in 2021 and ongoing in 2022, and by a continued high fleet utilisation rate (87% on average in H1 2022).
  • The management business grew by €0.4 million (+46%) because of the fees generated by the sale of assets to investors at the end of June 2022.

The River Barges division generated a €2.5 million increase in restated revenue from its activities to €7.6 million. This is attributable to the increase in ancillary services (+€2.5 million) linked to a rise in the chartering of barges in the Rhine basin.

The Containers division saw consolidation of the results of the proprietary trading and investment policy, posting an increase in its revenue from activities of €25.2 million to €41.3 million. Sales of owned equipment related to the trading business rose by a sharp €18.8 million. Invoicing of ancillary services (pick-up charges) rose by €2.1 million. This increase reflects exceptional demand for containers among shipping companies amid the ongoing shortage. This trend was underpinned by leasing revenue, which was up by a sharp 45% over the period to €7.3 million.

The management activity increased by €2.0 million to €4.8 million. Syndication fees were up and commissions on the sale of investor equipment also increased by €0.7 million. Management fees rose by €0.2 million.

The Modular Building activity in Africa presented in the “Miscellaneous” line item failed to replicate its H1 2021 performance, posting a decrease of €4.7 million.

SIGNIFICANT INCREASE IN PROFITABILITY

Group EBITDA stood at €29.5 million at 30 June 2022, up sharply (by €8.2 million) on H1 2021.

This performance was mainly due to strong growth in leasing activity in the Freight Railcars and Containers divisions, which was underpinned by a decrease in operating expenses on Freight Railcars and the return of purchases and sales in the container trading activity.

Syndication fees were also up in both divisions, with a significant increase in overall sales volumes in the Containers division.

The Group share of net profit came to €7.6 million in H1 2022 (vs. €2.0 million a year earlier).

FINANCIAL STRUCTURE

On 28 June 2022, Touax SCA issued a sustainability-linked bond of €33.3 million over 5 years, in order to:

– repay part of its existing debt in the amount of €10 million and extend its maturity by 2 years to 2027;

– reduce the cost of its financial resources by €0.9 million per year by buying back the full €26.6 million in undated deeply subordinated bonds.

At 30 June 2022, the Group’s loan-to-value ratio was 56% compared with 52% at end-December 2021. This increase can be explained in part by the increase in investments in new equipment during the first six months of the year (in the Containers division in particular), the financing ratio of which is higher, and by a portion of the buyback of the undated deeply subordinated bonds as of 30 June 2022 (€8.5 million repaid at that date, while the balance of €18.1 million was repaid on 1 August 2022).

The Group’s net debt stood at €242 million, up €11 million year-to-date.

Total shareholders’ equity at 30 June 2022 amounted to €170.2 million compared with €165.0 million at 31 December 2021. This figure includes €8.5 million in repayment on the hybrid capital.

OUTLOOK

Touax is not directly exposed to the Russia-Ukraine conflict, as it has no subsidiaries, customers or leased transport assets (with the possible exception of a few non-significant containers in transit) in Ukraine or Russia.

In the current context of inflationary pressures and rising interest rates, Touax continues to roll out its activities with confidence, backed by a resilient business model and recurring revenues based on long-term contracts. The Group plans to continue to seize         new asset acquisition opportunities over the coming months, while also adopting a prudent investment policy. The current inflationary environment has a positive effect on the valuation of the portfolio of assets.

From a structural and medium- to long-term perspective, the business outlook in the long-term leasing of equipment for sustainable transportation is positive. Our various asset classes are benefiting from developments in relation to infrastructures, e-commerce, and intermodal logistics as they keep pace with the expectations of consumers, industrial groups, public authorities, lenders and investors around green transport.

UPCOMING EVENTS

  • 29 September 2022: Video conference call to present the H1 results in French
  • 30 September 2022: Video conference call to present the H1 results in English
  • 14 November 2022: Q3 revenue from activities

TOUAX Group leases out tangible assets (freight railcars, river barges and containers) on a daily basis worldwide, both on its own account and for investors. With more than €1.3 billion of assets under management, TOUAX is one of the leading European players in the leasing of such equipment.

TOUAX is listed on the EURONEXT stock market in Paris – Euronext Paris Compartment C (ISIN: FR0000033003) – and is listed on the CAC® Small, CAC® Mid & Small and EnterNext©PEA-PME 150 indices.

For further information please visit: www.touax.com

Contacts:

TOUAX        ACTIFIN

Fabrice & Raphaël Walewski        Ghislaine Gasparetto

touax@touax.com        ggasparetto@actifin.fr

www.touax.com        Tel: +33 1 56 88 11 11

Tel: +33 1 46 96 18 00        

APPENDIX

  1. Accounting presentation of revenue from activities
Revenue from activities Q1 2022 Q2 2022 H1 2022 Q1 2021 Q2 2021 H1 2021
(in € thousand)
Leasing revenue on owned equipment 15,509 16,909 32,418 13,229 13,633 26,862
Ancillary services 6,578 8,632 15,210 3,084 3,946 7,030
Total leasing activity 22,087 25,541 47,628 16,313 17,579 33,892
Sales of owned equipment 14,862 14,249 29,111 7,085 8,328 15,413
Total sales of equipment 14,862 14,249 29,111 7,085 8,328 15,413
Total of owned activity 36,949 39,790 76,739 23,398 25,907 49,305
Leasing revenue on managed equipment 10,819 10,917 21,736 11,072 10,912 21,984
Syndication fees 0 2,522 2,522 17 946 963
Management fees 270 286 556 157 166 323
Sales fees 336 1,349 1,685 591 358 949
Total of management activity 11,425 15,074 26,499 11,837 12,382 24,219
Other capital gains on disposals 0 0 0 0 6 6
Total Others 0 0 0 0 6 6
Total Revenue from activities 48,374 54,864 103,238 35,235 38,295 73,530

2- Table showing the transition from summary accounting presentation to restated presentation

Revenue from activities H1 2022 Restatement Restated H1 2022 H1 2021 Restatement Restated H1 2021
(in € thousand)
Leasing revenue on owned equipment 32,418 0 32,418 26,862 0 26,862
Ancillary services 15,210 -4,594 10,616 7,030 -539 6,491
Total leasing activity 47,628 -4,594 43,034 33,892 -539 33,353
Sales of owned equipment 29,111 0 29,111 15,413 0 15,413
Total sales of equipment 29,111 0 29,111 15,413 0 15,413
Total of owned activity 76,739 -4,594 72,145 49,305 -539 48,766
Leasing revenue on managed equipment 21,736 -21,736 0 21,984 -21,984 0
Syndication fees 2,522 0 2,522 963 0 963
Management fees 556 1,408 1,964 323 1,465 1,788
Sales fees 1,685 0 1,685 949 0 949
Total of management activity 26,499 -20,328 6,171 24,219 -20,519 3,700
Other capital gains on disposals 0 0 0 0 6 6
Total Others 0 0 0 0 6 6
Total Revenue from activities 103,238 -24,921 78,316 73,530 -21,057 52,473

1 Based on a comparable structure and average exchange rates in the first half of 2021

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