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

TOUAX
TOUAX

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

Attachment