PRESS RELEASE Paris, November 13, 2020 – 5.45 p.m.
YOUR OPERATIONAL LEASING SOLUTION FOR SUSTAINABLE TRANSPORTATION
Growth in revenue from activities at September 30, 2020
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ANALYSIS OF REVENUE FROM ACTIVITIES
Revenue from activities in Q3 2020 reached €43.3 million versus €40.2 million in Q3 2019, an increase of 7.8%.
Revenue from activities over the first nine months of the year reached €124.6 million (€125.5 million at constant scope and currency2) compared with €119.6 million in 2019, an increase of 4.1%. The impact of the health crisis was limited.
This performance was primarily driven by a 7.0% increase in leasing revenue on owned equipment (€39.5 million) and by strong equipment sales of €27.8 million versus €19.0 million in the first nine months of 2019. The decrease in leasing revenue on managed equipment mainly stemmed from a reduction in the fleet linked to sales of equipment belonging to third party investors, and the impact of exchange rate variations.
Syndication fees and capital gains not linked to recurring activities came to €0.5 million, compared with €0.8 million a year earlier.
| Revenue from activities (in € thousands) | Q1 2020 | Q2 2020 | Q3 2020 | TOTAL | Q1 2019 | Q2 2019 | Q3 2019 | TOTAL |
| Leasing revenue on owned equipment | 13,305 | 13,253 | 12,912 | 39,470 | 11,641 | 12,243 | 13,008 | 36,892 |
| Leasing revenue on managed equipment | 14,889 | 14,005 | 13,159 | 42,053 | 16,541 | 16,038 | 15,179 | 47,758 |
| Ancillary services | 4,708 | 4,593 | 5,480 | 14,781 | 4,594 | 4,876 | 5,726 | 15,196 |
| Total leasing activity | 32,902 | 31,851 | 31,551 | 96,304 | 32,776 | 33,157 | 33,913 | 99,846 |
| Sales of owned equipment | 5,872 | 7,217 | 10,916 | 24,005 | 3,271 | 6,925 | 4,604 | 14,800 |
| Margins on sale of managed equipment | 2,134 | 876 | 793 | 3,803 | 831 | 1,697 | 1,625 | 4,153 |
| Total sales of equipment | 8,006 | 8,093 | 11,709 | 27,808 | 4,102 | 8,622 | 6,229 | 18,953 |
| Fees on syndication and other capital gains on disposals | 247 | 232 | 13 | 492 | 389 | 449 | 8 | 846 |
| Total revenue from activities | 41,155 | 40,176 | 43,273 | 124,604 | 37,267 | 42,228 | 40,150 | 119,645 |
ANALYSIS OF CONTRIBUTIONS BY DIVISION
| Revenue from activities (in € thousands) | Q1 2020 | Q2 2020 | Q3 2020 | TOTAL | Q1 2019 | Q2 2019 | Q3 2019 | TOTAL |
| Leasing revenue on owned equipment | 9,182 | 9,140 | 8,910 | 27,232 | 8,536 | 9,240 | 8,994 | 26,770 |
| Leasing revenue on managed equipment | 4,024 | 3,955 | 4,053 | 12,032 | 3,422 | 3,507 | 3,453 | 10,382 |
| Ancillary services | 1,645 | 2,138 | 1,849 | 5,632 | 1,437 | 2,141 | 1,965 | 5,543 |
| Total leasing activity | 14,851 | 15,233 | 14,812 | 44,896 | 13,395 | 14,888 | 14,412 | 42,695 |
| Sales of owned equipment | 939 | 662 | 354 | 1,955 | 88 | 61 | 677 | 826 |
| Total sales of equipment | 939 | 662 | 354 | 1,955 | 88 | 61 | 677 | 826 |
| Fees on syndication | 214 | 232 | 446 | |||||
| Freight railcars | 16,004 | 16,127 | 15,166 | 47,297 | 13,483 | 14,949 | 15,089 | 43,521 |
| Leasing revenue on owned equipment | 1,533 | 1,520 | 1,656 | 4,709 | 1,523 | 1,650 | 1,644 | 4,817 |
| Ancillary services | 1,349 | 544 | 1,162 | 3,055 | 1,317 | 1,243 | 1,601 | 4,161 |
| Total leasing activity | 2,882 | 2,064 | 2,818 | 7,764 | 2,840 | 2,893 | 3,245 | 8,978 |
| Sales of owned equipment | 42 | 42 | ||||||
| Total sales of equipment | 42 | 42 | ||||||
| River barges | 2,882 | 2,064 | 2,818 | 7,764 | 2,882 | 2,893 | 3,245 | 9,020 |
| Leasing revenue on owned equipment | 2,577 | 2,582 | 2,335 | 7,494 | 1,558 | 1,331 | 2,356 | 5,245 |
| Leasing revenue on managed equipment | 10,865 | 10,050 | 9,105 | 30,020 | 13,119 | 12,531 | 11,726 | 37,376 |
| Ancillary services | 1,663 | 2,040 | 2,470 | 6,173 | 1,818 | 1,490 | 2,168 | 5,476 |
| Total leasing activity | 15,105 | 14,672 | 13,910 | 43,687 | 16,495 | 15,352 | 16,250 | 48,097 |
| Sales of owned equipment | 4,065 | 4,192 | 6,343 | 14,600 | 1,833 | 3,009 | 3,416 | 8,258 |
| Margins on sales of managed equipment | 2,134 | 876 | 793 | 3,803 | 831 | 1,697 | 1,625 | 4,153 |
| Total sales of equipment | 6,199 | 5,068 | 7,136 | 18,403 | 2,664 | 4,706 | 5,041 | 12,411 |
| Fees on syndication | 18 | 13 | 31 | 389 | (7) | 8 | 390 | |
| Containers | 21,322 | 19,740 | 21,059 | 62,121 | 19,548 | 20,051 | 21,299 | 60,898 |
| Leasing revenue on owned equipment | 13 | 11 | 12 | 36 | 24 | 22 | 14 | 60 |
| Ancillary services | 51 | (129) | (1) | (79) | 22 | 2 | (8) | 16 |
| Total leasing activity | 64 | (118) | 11 | (43) | 46 | 24 | 6 | 76 |
| Sales of owned equipment | 868 | 2,363 | 4,219 | 7,450 | 1,308 | 3,855 | 511 | 5,674 |
| Total sales of equipment | 868 | 2,363 | 4,219 | 7,450 | 1,308 | 3,855 | 511 | 5,674 |
| Other capital gains on disposal | 15 | 15 | 456 | 456 | ||||
| Miscellaneous and eliminations | 947 | 2,245 | 4,230 | 7,422 | 1,354 | 4,335 | 517 | 6,206 |
| Total revenue from activities | 41,155 | 40,176 | 43,273 | 124,604 | 37,267 | 42,228 | 40,150 | 119,645 |
Revenue from the Freight Railcars division reached €47.3 million in the first nine months of the year versus €43.5 million in 2019, an increase of 8.7%.
- Leasing revenue increased by 5.2% to €44.9 million over the period, thanks to an increase in lease rates which offset the decline in utilization rates (84.6% on average over the period compared with 88.4% a year earlier).
- Sales of freight railcars and syndication margins increased, notably with disposals to investors, while Touax maintained management of the equipment.
Revenue from the River Barges division reached €7.8 million over the period, compared with €9.0 million during the first nine months of 2019, with a lower freight rate but an average utilization rate that increased over the period to 95.7%.
Revenue from the Containers division reached €62.1 million at the end of September 2020, an increase of 2.0%. The average utilization rate over the period was 95.8% compared with 97.5% over the first nine months of 2019, showing good resilience.
- The investment strategy conducted over the past two years has led to growth of 42.9% in leasing revenue on owned equipment to €7.5 million (€7.5 million at constant currency, up 43.0%). As expected, leasing revenue from managed equipment declined to €30.0 million due to equipment disposals.
- Buoyant trading activity generated growth in container sales to €18.4 million at 30 September 2020 versus €12.4 million over the first nine months of 2019.
Lastly, revenue from the sale of Modular Buildings in Africa, which is booked under "Miscellaneous", increased to €7.5 million for the period, with major deliveries completed during the third quarter.
OUTLOOK
Despite the current health crisis, Touax saw continued growth with positive results in the first half of the year and a 4.1% increase in revenue in the first nine months of the year. Its three long-term equipment leasing businesses in sustainable, environmentally-friendly transportation enabled the Group to show the resilience of its business model in the current context of Covid-19.
After growth of 1.5% in 2019, the European rail freight market is expected to show a contraction of 7% (source: UIRR – growth in intermodal transport via rail), followed by a rebound in 2021. Touax Rail plans to forge ahead with its development, drawing on its new financing sources in a market that offers investment opportunities in certain types of railcars and in the fleets of clients looking to outsource ownership and maintenance. Touax Rail could also benefit from government stimulus plans in rail freight in Europe and Asia.
River transportation should continue to benefit from the effects of progress in the ecological transition, underpinned by strong demand for equipment on the Seine (transport of aggregates for construction sites in Greater Paris), and on the Rhine (transport of grain and biomass).
Concerning the containers division, international freight transport held up well in the first half of the year and indicators show a stronger recovery in the third quarter of 2020, notably in Asia (source: IMF Global economic outlook, October 2020). The recovery of the Asian markets and recent increases in new container prices are underpinning the trading activity in new and used containers, which significantly complements the leasing activity.
From a structural and medium to long-term perspective, Europe's Green Deal, together with the various infrastructure sector recovery drives announced by governments and the tendency towards outsourcing should continue to underpin investment in our asset classes.
UPCOMING EVENTS
- February 26, 2021: 2020 Revenue from activities
- March 24, 2021: 2020 annual results – SFAF presentation
- March 26, 2021: Conference call to present the annual results
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 nearly €1.1bn in 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 code: 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
1 Revenue corresponds to revenue from activities that generate leasing revenue, sales of equipment, syndication fees and other capital gains.
2 Based on a comparable structure and average exchange rates over the first nine months of 2019.
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