PRESS RELEASE  -  Paris, 15 November  2017- 6 p.m.

TOUAX
YOUR OPERATIONAL LEASING SOLUTION

REVENUE FOR Q3 2017[1]

  • Consolidated revenue at €162.6 million
  • Leasing revenue up 2.6%
  • Confirmation of an operating profit in 2017

REVENUE ANALYSIS

Revenue by type

(unaudited data,
€ thousands)
Q1 2017 Q2 2017 Q3 2017 TOTAL Q1 2016 Q2 2016 Q3 2016 TOTAL
Leasing revenue (1) 38,498 37,820 34,414 110,733 36,130 35,202 36,648 107,980
Sales of equipment 15,070 31,123 5,679 51,872 22,538 17,623 17,585 57,747
Including sales to clients 8,947 8,324 5,842 23,113 12,622 13,921 11,783 38,326
Including sales to investors 6,123 22,799 (163) 28,760 9,916 3,702 5,802 19,421
Consolidated revenue 53,568 68,943 40,093 162,605 58,668 52,825 54,233 165,726

(1) Leasing revenue includes ancillary services.

Combined consolidated revenue at the end of September 2017 from retained operations amounted to €162.6 million, compared with €165.7 million in 2016 (-1.9%). At constant scope and exchange rates, revenue decreased by 7.9% with the effect of the dollar.

Leasing revenue continued to grow to €110.7 million (+2.6%), with higher revenue from the River Barges and Freight Railcars businesses. The Shipping Containers business recorded a drop mainly due to currency effects and the reduction in the fleet following the significant sales of used containers in 2016. The market recovered strongly in 2017 and the utilization rate increased significantly, but could not fully offset the effects of 2016.

Sales to customers were down to €23.1 million, with used container sales dropping sharply in 2017 in the context of the market previously mentioned with the significant recovery in the leasing market and utilisation rate. Sales to investors increased by 48.1% with the syndication of railcars to a Luxembourg investment fund carried out during the 2nd quarter.

Analysis of the contribution of the 3 Group's divisions

Revenue by division

(unaudited data,
€ thousands)
Q1 2017 Q2 2017 Q3 2017 TOTAL Q1 2016 Q2 2016 Q3 2016 TOTAL
Leasing revenue (1) 11,929 12,826 12,309 37,064 9,102 9,191 9,318 27,611
Sales of equipment 598 24,038 135 24,771 178 2,333 70 2,582
Including sales to clients 434 1,139 135 1,708 178 2,333 70 2,582
Including sales to investors 164 22,899   23,063        
Freight railcars 12,527 36,864 12,444 61,835 9,280 11,524 9,388 30,193
Leasing revenue (1) 3,699 3,560 3,624 10,883 3,089 2,768 3,281 9,139
Sales of equipment 6 111 52 169 918 18 18 953
Including sales to clients 6 111 52 169 918 18 18 953
River barges 3,705 3,671 3,676 11,053 4,007 2,786 3,299 10,092
Leasing revenue (1) 22,824 21,572 18,427 62,822 23,828 23,132 23,986 70,946
Sales of equipment 13,480 6,320 4,037 23,837 19,429 13,725 16,970 50,125
Including sales to clients 7,520 6,420 4,200 18 140 9,513 10,023 11,168 30,704
Including sales to investors 5,960 -100 -163 5,697 9,916 3,702 5,802 19,421
Shipping containers 36,304 27,892 22,464 86,659 43,257 36,857 40,956 121,071
Leasing revenue (1) 45 -137 54 -38 111 111 62 284
Sales of equipment 987 653 1,454 3,095 2,013 1,547 527 4,087
Including sales to clients 987 653 1,454 3,095 2,013 1,547 527 4,087
Miscellaneous and unallocated 1,032 516 1,508 3,057 2,124 1,658 589 4,371
                 
Consolidated revenue 53,568 68,943 40,093 162,605 58,668 52,825 54,233 165,726

(1) Leasing revenue includes ancillary services.

Freight Railcars: The Freight Railcars business is the activity in which the Group has made the most of owned investment. Revenues for the Freight Railcars division increased by 104.8% from €30.2 million in September 2016 to €61.8 million at the end of September 2017, mainly due to higher leasing revenues and a syndication to investors. Leasing revenues increased by €9.5 million (or +34.2%) to €37.1 million in September 2017 due to the full consolidation of an asset-holding subsidiary. At the end of September, the average utilisation rate continues to rise in a moderately growing market.

River Barges: Revenues from the River Barges division amounted to €11.1 million, an increase of 9.5%, with increased activity on the Rhine despite the lack of sales.

Shipping Containers: The Shipping Containers business consists mainly of assets managed on behalf of third parties. The leasing market recovered strongly in 2017, with a utilization rate that reached 98.8% on
30 September 2017. Revenue from the Shipping Containers division fell to €86.7 million, mainly due to changes of scope. Half of the drop in leasing revenue in 2017 is due to a lower dollar and the balance is due to a decrease in the fleet and the bankruptcy in 2016 of the 7th largest shipowner Hanjin. Sales were down in 2017 with lower syndication volumes and lower second-hand sales.

The retained activity of modular buildings sales in Africa grouped under "miscellaneous" shows an improvement in 3rd quarter which will continue until the end of the year.

 OUTLOOK

European markets should continue to favour the growth of river barges and freight railcars leasing activities on the continent. The shortage of shipping containers appears to be continuing and will favour the high leasing level of our equipment.

The sale of the modular businesses will enable the Group to resume an investment and growth phase in a positive market context.

TOUAX confirms an operating profit for the full year 2017.

UPCOMING DATES

  • 22 February 2018:         2017 revenue
  • 4 April 2018:                 2017 results
  • 5 April 2018:                 Financial analyst presentation and conference call

TOUAX Group leases out tangible assets (freight railcars, river barges and shipping-containers) on a daily basis throughout the world, for its own account and on behalf of third party investors. With close to €1.3 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 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
Fabrice & Raphaël Walewski
Managing partners
touax@touax.com
Tel: +33 (0)1 46 96 18 00

ACTIFIN
Ghislaine GASPARETTO
ggasparetto@actifin.fr
Tel: +33 (0)1 55 88 11 11
                                                                               



[1] In accordance with IFRS 5, European and US Modular Buildings activities are presented as discontinued operations. In practice, revenues and expenses have been treated as follows:

  • The contribution to each line of the TOUAX consolidated income statement is grouped under "Net income from discontinuing operations" over the periods presented;
  • In accordance with IFRS 5, these restatements are applied to all periods presented in order to make the information consistent.