PRESS RELEASE                                                Paris, 22 February 2018 - 6.00 p.m.

TOUAX
YOUR OPERATIONAL LEASING SOLUTION

2017 ANNUAL REVENUE

  • Annual consolidated revenue at €212 million
  • Stable leasing activity
  • Confirmation of an operating profit in 2017

REVENUE ANALYSIS

Revenue by type

(unaudited data,
€ thousands)
Q1 2017 Q2 2017 Q3 2017 Q4 2017 TOTAL Q1 2016 Q2 2016 Q3 2016 Q4 2016 TOTAL
Leasing revenue (1) 38,498 37,820 34,414 35,371 146,103 36,130 35,202 36,648 39,132 147,112
Sales of equipment 15,070 31,123 5,679 13,954 65,826 22,538 17,623 17,585 27,802 85,549
Including sales to clients 8,947 8,324 5,842 14,033 37,146 12,622 13,921 11,783 15,082 53,408
Including sales to investors 6,123 22,799 (163) (79) 28,680 9,916 3,702 5,802 12,720 32,141
Consolidated revenue 53,568 68,943 40,093 49,325 211,929 58,668 52,825 54,233 66,934 232,660

(1) Leasing revenue includes ancillary services.

Over the full 2017 financial year, consolidated revenue amounted to €211.9 million compared to €232.7 million in 2016, a decrease of 8.9% due to lower Shipping Container sales partially offset by higher Freight Railcar sales. At constant exchange rates, revenue decreased by 13.4% mainly due to the falling value of the US dollar.

Leasing revenue was stable at €146.1 million. The fall in Shipping Container activity mainly due to currency effects and a decreased managed fleet is offset by the increase in the River Barges and Freight Railcars leasing activities.

Customer sales were down at €37.1 million. Used container sales decreased in 2017 in a buoyant leasing market context with a 99% utilisation rate as few containers were available for sale.

Few investments and therefore syndications to investors were made in 2017 in the Shipping Containers division to focus on improving utilisation rates and the leasing of unused containers. Following the launch in 2017 of a special partnership with an investment fund in real assets, sales of freight railcars to investors rose by 177% in a favourable European market.

 Analysis of the contribution of the 3 Group's divisions

Revenue by type

(unaudited data,
€ thousands)
Q1 2017 Q2 2017 Q3 2017 Q4 2017 TOTAL Q1 2016 Q2 2016 Q3 2016 Q4 2016 TOTAL
Leasing revenue (1) 11,929 12,826 12,309 13,861 50,925 9,102 9,191 9,318 9,891 37,501
Sales of equipment 598 24,038 135 3,260 28,031 178 2,333 70 8,786 11,368
Including sales to clients 434 1,139 135 3,260 4,969 178 2,333 70 469 3,051
Including sales to investors 164 22,899     23,063       8,317 8,317
Freight railcars 12,527 36,864 12,444 17,121 78,957 9,280 11,524 9,388 18,677 48,869
 

Leasing revenue (1)
3,699 3,560 3,624 3,457 14,341 3,089 2,768 3,281 3,707 12,846
Sales of equipment 6 111 52 53 222 918 18 18 71 1,024
Including sales to clients 6 111 52 53 222 918 18 18 71 1,024
River Barges 3,705 3,671 3,676 3,510 14,563 4,007 2,786 3,299 3,778 13,870
 

Leasing revenue (1)
22,824 21,572 18,427 17,616 80,439 23,828 23,132 23,986 25,647 96,594
Sales of equipment 13,480 6,320 4,037 5,061 28,898 19,429 13,725 16,970 16,166 66,290
Including sales to clients 7,520 6,420 4,200 5,140 23,281 9,513 10,023 11,168 11,762 42,466
Including sales to investors 5,960 (100) (163) (79) 5,618 9,916 3,702 5,802 4,403 23,824
Shipping containers 36,304 27,892 22,464 22,678 109,337 43,257 36,857 40,956 41,813 162,884
 

Leasing revenue (1)
45 (137) 54 436 399 111 111 62 (114) 171
Sales of equipment 987 653 1,454 5,579 8,674 2,013 1,547 527 2,780 6,866
Including sales to clients 987 653 1,454 5,579 8,674 2,013 1,547 527 2,780 6,866
Miscellaneous and unallocated 1,032 516 1,508 6,016 9,073 2,124 1,658 589 2,666 7,037
                     
Consolidated revenue 53,568 68,943 40,093 49,325 211,929 58,668 52,825 54,233 66,934 232,660

(1) Leasing revenue includes ancillary services.

Freight railcars: The Freight Railcar activity that accounts for most of the Group's investments is the most significant contributor to EBITDA. Revenues for the Freight Railcars division increased by 61.6% from €48.9 million to €79 million at the end of December 2017, mainly due to higher leasing revenues and syndications to investors. Leasing revenues increased by €13.4 million (or +35.8%) to reach €50.9 million as of 31 December 2017 due to the full consolidation of an asset-holding subsidiary. At the end of December, the average utilisation rate rose in a growing market.

River Barges:  Revenues for the River Barges division totalled €14.6 million, an increase of 5% thanks to improved activity on the Rhine and despite the lack of sales in 2017 compared to 2016.

Shipping containers: The Shipping Containers activity consists mainly of assets managed on behalf of third parties. The leasing market recovered strongly in 2017 with a utilisation rate of 99% at the end of 2017. Revenues in the Shipping Containers division decreased to €109.3 million mainly due to scope effects. Half of the fall in leasing revenues in 2017 is due to the falling value of the dollar while the other half is due to the decreased fleet. Sales are down in 2017 with a lower volume of used sales and the almost absence of syndication.

The retained activity of modular buildings sales in Africa grouped under "miscellaneous" shows an improvement in 4th quarter due to the completion of many projects started during the previous quarters.


OUTLOOK

Following the transfer of the modular building sale and leasing business in Europe and the United States for a combined disposal value of approximately €170 million, the Group is finalizing its strategic refocusing on its three transport equipment leasing activities in a favourable market environment. This sale will allow TOUAX to increase its investment capacity.

The Freight Railcars leasing activity in Europe and Asia continues to grow in line with the growth of trade and GDP in these two areas, allowing TOUAX to strengthen its partnership with real asset and infrastructure funds.

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

With global GDP growth of 3.9% expected in 2018, the growth in world trade and hence demand for Shipping Containers should continue and promote the high leasing level of our equipment. In order to meet the needs of its customers in 2018, TOUAX plans to invest in shipping containers for its own account and in partnership with third-party investors.

TOUAX confirms an operating profit for the full year 2017.

UPCOMING DATES

  • 28 March 2018:             2017 results
  • 28 March 2018:             Financial analyst presentation
  • 29 March 2018:             Investors conference call
  • 15 May 2018:               Q1 2018 revenue
  • 20 June 2018:               Annual shareholders meeting

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