PRESS RELEASE                                                                                                                      Paris, 14 November  2016 - 6 p.m.
YOUR OPERATIONAL LEASING SOLUTION

REVENUE FOR Q3 2016

  • Consolidated revenues increased by 5% thanks to the growth of sales of equipment
  • Confirmation of positive operating income for 2016
  • Positive free cash flow in 2016

REVENUE ANALYSIS

Revenue by type

(unaudited data,
€ thousands)
Q1 2016 Q2 2016 Q3 2016 TOTAL Q1 2015 Q2 2015 Q3 2015 TOTAL
Leasing revenue (1) 53 380 53 987 55 086 162 453 55 420 55 916 56 771 168 108
Sales of equipment 34 273 29 822 30 594 94 689 12 808 43 393 20 514 76 716
Including sales to clients 24 357 26 120 24 792 75 268 12 708 21 499 20 509 54 716
Including sales to investors 9 916 3 702 5 802 19 421 100 21 872 28 22 000
Consolidated revenue 87 653 83 809 85 680 257 142 68 228 99 309 77 286 244 823

(1) Leasing revenue includes ancillary services.

Total consolidated revenues at the end of September 2016 increased by 5% to €257.1 million euros. At constant exchange rates, revenues increased by 5.5% with low impact from exchange rates.

Total leasing revenues fell to €162.5 million despite an increase in the Modular Buildings and Freight Railcars divisions. The Group's rental activity confirms a recovery in Europe with increased utilisation rates in the Modular Buildings business and a growth in the Freight Railcars business while worldwide Shipping Containers and River Barges activity decreased in 2016.

Equipment sales increased by 23.4% to €94.7 million.

Sales to customers were up by 30.6%, driven by good performance in the 4 businesses. In particular, TOUAX is developing its sales business of used containers and new modules, and is continuing to rationalize its fleet of used modular buildings in some supplementary countries.

Sales to investors are also growing with more than 58,000 containers (20-foot equivalent) sold by the end of September 2016 compared to around 12,000 containers at the end of September 2015. However, this increased volume is not recorded under revenues of which only the sales margin is recorded in commission under IFRS standards, in certain cases.

Analysis of the contribution of the 4 Group's divisions

Revenue by division

(unaudited data,
€ thousands)
Q1 2016 Q2 2016 Q3 2016 TOTAL Q1 2015 Q2 2015 Q3 2015 TOTAL
 

Leasing revenue (1)
23 828 23 132 23 986 70 946 26 567 26 601 25 702 78 870
Sales of equipment 19 429 13 725 16 970 50 125 5 614 30 826 9 073 45 513
Including sales to clients 9 513 10 023 11 168 30 704 5 514 8 954 9 045 23 514
Including sales to investors 9 916 3 702 5 802 19 421 100 21 872 28 22 000
Shipping containers 43 257 36 857 40 956 121 071 32 181 57 427 34 775 124 383
 

Leasing revenue (1)
17 451 18 996 18 581 55 027 17 544 17 583 18 606 53 733
Sales of equipment 13 751 13 756 13 552 41 059 6 903 12 246 9 933 29 082
Including sales to clients 13 751 13 756 13 552 41 059 6 903 12 246 9 933
29 082
Modular buildings 31 202 32 752 32 132 96 086 24 447 29 829 28 539 82 815
 

Leasing revenue (1)
3 090 2 768 3 281 9 139 3 846 3 661 4 272 11 779
Sales of equipment 918 17 18 953 19 19 19 57
Including sales to clients 918 17 18 953 19 19  19  57
River barges 4 008 2 785 3 299 10 092 3 865 3 680 4 291 11 836
 

Leasing revenue (1)
9 102 9 191 9 318 27 611 7 566 8 220 8 251 24 037
Sales of equipment 174 2 323 55 2 552 272 279 1 511 2 062
Including sales to clients 174 2 323 55 2 552 272 279 1 511 2 062
Including sales to investors                
Freight railcars 9 276 11 514 9 373 30 163 7 838 8 521 9 762 26 099
Miscellaneous and unallocated (94) (110) (80) (270) (103) (148) (60) (311)
                 
Consolidated revenue 87 653 83 809 85 680 257 142 68 228 99 309 77 308 244 823

(1) Leasing revenue includes ancillary services.

Shipping containers: Revenues in the division fell by 2.7% to €121.1 million (-2.5% with a constant dollar exchange rate) with a decline in leasing activity offset by higher sales. The decrease in leasing activity is due to lower utilisation rates during 2015. Since the beginning of 2016, the utilisation rate has increased again to reach 91.4% on 30 July 2016. Despite higher equipment syndications, more numerous in 2016, net sales revenue is falling due to the accounting method that only takes into account the margin of sales when buying/selling transactions are concurrent. Sales of used containers to customers remain very strong with an increase of 31%.

Modular Buildings: Revenues in the division increased by 16% to €96.1 million (17% at constant currency exchange rates). Leasing revenues have increased by 2.4% (€55 million) in most countries where we operate with quite marked increases in value in the main countries. There has been an increase in utilisation rates and leasing prices. Sales of new and used equipment remain high, confirming the recovery of the business, and increased by 41.2% to reach €41.1 million.

River Barges: Revenues in the River Barges division stood at €10.1 million, down due to lower activity on the Rhine. The barge leasing activity remains steady with an average utilisation rate of almost 92%. TOUAX has completed the refocusing of its barge leasing business by realizing the sale of its last pusher boat, with the Group now operating no more pusher boats or self-propelled barges.

Freight Railcars: Revenues in the Freight Railcars division increased by 15.5 % to €30.2 million. This increase is mainly explained by an increase in the fleet and strong leasing activity at the end of September 2016 compared to September 2015, with a growth of the business. In October 2016, Touax also announced the signing of a freight railcar portfolio syndication to SICAF-SIF TOUAX Investment SCA, sales that will be visible in the Group's annual revenues and which confirms the strategy to grow third-party asset management related to transport activities.

OUTLOOK

The combined effect of the global trade growth of about 3%, the recent rise in prices of raw materials and steel, and increases in the utilisation rate since April 2016, should benefit to the Shipping containers business.

The Modular buildings business continues its recovery with a strong performance in Germany and Eastern Europe, the improved utilisation rates already observed in 2015 and sales that are growing significantly.

Demand for River barges varies depending on the country, with low demand in South America, but increasing requirements in Europe.

The Freight Railcars leasing business in Europe continues to improve gradually enabling Touax to strengthen and develop third-party asset management.

Over the full year, the Group continued to implement its strategy to increase its operating cash flow with a stabilisation of its own assets, a growth in its assets under management for third parties and its improved utilisation rates, and is therefore predicting positive free cash for the year 2016.

TOUAX confirms an operating profit for the whole of the year 2016.

UPCOMING DATES

  • 23 February 2017:         2016 revenue
  • 29 March 2017:             2016 results
  • 30 March 2017:             Financial analyst presentation and conference call

TOUAX Group leases out tangible assets (shipping-containers, modular buildings, freight railcars and river barges) on a daily basis to more than 5 000 customers throughout the world, for its own account and on behalf of third party investors. With more than €1.8 billion under management, TOUAX is one of the European leaders in the operational leasing of this type of equipment.

TOUAX is listed in Paris on NYSE EURONEXT - Euronext Paris Compartment C (Code ISIN FR0000033003) and on the CAC® Small and CAC® Mid & Small indexes and in EnterNext PEA-PME.

For more information: www.touax.com

Contacts:

TOUAX                                                                                                                ACTIFIN
Fabrice & Raphaël WALEWSKI                                                                             Ghislaine GASPARETTO
Managing Partners                                                                                               ggasparetto@actifin.fr
touax@touax.com                                                                                               
www.touax.com                                                                                                   Tel: +33 (0)1 56 88 11 11
Tel: +33 (0)1 46 96 18 00