Loxam Q2 2014€¦ · Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Generalist France Specialist France International Adj. EBITDA Quarterly Change (Y to Y) Like-for-Like.
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Confidential
Q2 2014FINANCIAL RESULTS
28th August 2014
www.loxamgroup.com
Confidential 1
Contents
Q2 2014 Highlights
Business overview
2014 roadmap
Q2 2014 Financial results
Q&A
Confidential
Q2 2014 HIGHLIGHTS
Confidential 3
H1 2014 Adj. EBITDA (€m)
H1 2014 Revenues (€m)
H1 2014 : Good performance
% margin
28.0%
+5.3%
28.4%
377391
H1 2013 H1 2014
+3.9%
105111
H1 2013 H1 2014
Q2 2014 Adj. EBITDA (€m)
Q2 2014 Revenues (€m)
-1.7%
% margin
32.2%
-2.6%
31.9%
66 64
Q2 2013 Q2 2014
205 202
Q2 2013 Q2 2014
Confidential 4
Q2 2014 revenues down in France following municipal elections
4
3%
-3% -3%-5%
-16%
-6%
3%2%
8%
-6%
9%
-2%
1%
-4%-6%
1%
-1%
4% 3% 3%4%
-3%
-8%-7%
-12%
2%
5% 6%
15%
0%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14
Generalist France Specialist France International
Revenue Quarterly Change (Y to Y) Like-for-Like
Confidential 5
Q2 2014 EBITDA in line with revenues trend
5
6%
-3%
0%
-25%
-44%
-9%
1%
7%
21%
-5%
23%
-10%-5%
-20% -20%
0%-5%
7%
0%
3%
32%
8%
-1%
-13%
-43%
-9%-14%
-1%
26%
-9%
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14
Generalist France Specialist France International
Adj. EBITDA Quarterly Change (Y to Y) Like-for-Like
Confidential
BUSINESS OVERVIEW
Confidential 7
Generalist France : Further consolidation of branc hes
Civil engineering market down
Q2 Revenues : 131m€ / Decrease of 6% vs Q2 2013
Q2 EBITDA : 43m€ / EBITDA margin : 32%, Flat vs Q2 2013
Consolidation of 12 branches during Q2
Number of employees at the end of June : 3122 (-2,5% vs Dec. 2013)
66%
Confidential 8
Specialist France : Good resilience in Q2
Resilient finishing works market
Q2 Revenues : 35m€ / Up by 3% vs Q2 2013
Q2 EBITDA : 13m€ / Up by 3% / Q2 EBITDA margin : 35%, Flat vs Q2 2013
Opening of one module branch
8
17%
Confidential 9
International: Growth thanks to Dansklift acquisition (in Dec. 2013)
Flat Q2 2014 like-for-like
Q2 Revenues : 35m€ / Up by +14% vs Q2 2013
Q2 EBITDA margin at 25%
Branch opening : 5 planned in H2 2014
9
17%
2014 Vs 2013 Like-for-like
Revenues EBITDA
Q2 2014 -0,9% -9,4%
H1 2014 +5,7% +1,1%
Confidential 10
• Acquisition of Workx in July 2014
o General plant
o 41 branches
o Fleet of 20,000+ machines
o 280 employees
• Strategic interest
o National coverage
Loxam becomes n °2 player in the Netherlands thanks to Workx acquisi tion
Key financials (In m€) (1) 2012 2013
Revenue 33.9 34.7
EBITDA 7.1 8.1
EBITDA (%) 21.0% 23.4%
Loxam generalist branches
Loxam specialist branches
(1) Source : Company filings
Workx branches
Confidential 11
Early commitment of capex
11
Gross fleet Capex H1 2014: €150m
FY 2014 capex : Around 200m€
Disposal of equipment : In line with technical retirement model34
63
86
150
0
20
40
60
80
100
120
140
160
H1 2013 H1 2014
Gross book value of disposed fleet equipment
Fleet Capex
m€
Gross Fleet Capex and Disposals (€m)
Confidential
Q2 2014 FINANCIAL RESULTS
Confidential 13
(a) Adjusted EBITDA and Adjusted EBIT exclude non-recurring costs. These adjustments amounted to €5.2 m in H1 2013, 0 in H1 2014; and 0 in Q2 2013 and Q2 2014. 13
(€m) Q2 2013 Q2 2014 Var. H1 2013 H1 2014 Var.
Revenue 205 202 -1.7% 377 391 +3.9%
Adj. EBITDA (a) 66 64 -2.6% 105 111 +5.3%
Margin 32% 32% 28% 28%
Adj. EBIT (a) 34 25 -25.3% 38 36 -6.1%
Margin 16% 12% 10% 9%
Net income 14 9 -33.3% 5 8 +57,7%
Margin 7% 5% 1% 2%
H1 2014 : Good performance, in line with expectatio ns
Confidential 14
Stability of working capital requirement
14
88
64 6067
96103
7380 80
(21)(17) (31)
(30) (42)(32) (21)
(56)(55)
-60
-40
-20
0
20
40
60
80
100
June 12 Sept. 12 Dec. 12 March 13 June 13 Sept. 13 Dec. 13 March 14 June 14
WCR relating to income tax / business operations WCR relating to fixed assets
QUARTERLY WORKING CAPITAL REQUIREMENT€
WCR relating to business and income tax
Confidential 15
Working capital requirement maintained at a low lev el
15
67
47
2937
54
71
52
25 25
8%
6%
3%
5%
7%
9%
6%
3% 3%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
0
10
20
30
40
50
60
70
80
90
June 12 Sept. 12 Dec. 12 March 13 June 13 Sept. 13 Dec.13 March 14 june 14
WORKING CAPITAL REQUIREMENTS WCR in % of turnover rolling 12 months basis (right hand scale)
QUARTERLY WORKING CAPITAL REQUIREMENT
%
€m
June 12 June 13 June 14
Confidential 16
Capex in H1 drives down free cash-flow
16
(€m) Q2 2013 Q2 2014 H1 2013 H1 2014
EBITDA before capital gains on fleetdisposal
63 57 93 99
Proceeds from disposals of fixed assets 5 9 9 17
Gross capital expenditure (55) (86) (92) (157)
Financial income and expense (12) (10) (22) (20)
Change in working capital requirement (17) 1 (25) 28
Free cash flow (21) (34) (42) (39)
Dividends (5) (5) (5) (5)
Acquisitions - - - (22)
Change in net debt (26) (39) (47) (66)
Confidential 17
Leverage ratio at 3.6x at the end of June
17
501 459 475393
211 211
388366
413
391
379471
6
2
22
45
83
117
117
300
300
960
-19 -25-63 -62 -150
-210 -200
3,8x 3,5x3,0x
2,8x3,4x
3,6x 3,6x
-250
-150
-50
50
150
250
350
450
550
650
750
850
950
1050
1150
1250
2009 2010 2011 2012 2013 June 2014 Pro Forma after
refinancing
Syndicated facilities Bilaterals Finance leases
High Yield Notes Other financial debt cash and cash equivalent
Leverage Ratio (Net debt / Adj. EBITDA)
Gross debt and cash evolution€m
2020
Confidential 18
Debt maturity profile improved after July refinanci ng
18
47 72 9263
140 109
8454
20 1
15
30 30
2316
3
300
H2 2014 2015 2016 2017 2018 2019 2020
Syndicated facilities Bilaterals Finance leases HY Notes
Debt maturity profile before refinancing (in €m)
15 30 3023 16 3
300
410
250
H2 2014 2015 2016 2017 2018 2019 2020 2021 2022
Finance leases Existing Notes New senior secured notes New senior subordinated notes
Debt maturity profile after refinancing (in €m)
48 7
Confidential
2014 ROADMAP
Confidential 20
European construction markets – 2014 Forecasts for U K revised upwards
20
-1.5% -1.2%France
+1.2% +0.3%Belgium +2.7% +2.9%
Germany
-6.7% -5.0%Spain
+9.8% +9.7%Ireland
+2.4% +4.4%
UnitedKingdom
+3.6% +2.0%Switzerland
+0.4% -0.7%Netherlands
+3.3% +2.5%Denmark
Norway+3.6% +0.4%
+/-%Old 2014 forecastForecast Euroconstruct - Dec. 2013
Revised 2014 ForecastForecast Euroconstruct - June 2014
+/-%
Construction markets - Evolution between 2013 and 20 14 (In %)
Confidential 21
2014 roadmap
- Streamlining of network: 50 mergers planned in 2014- Cost review (Business Units / HQ)
- France : No recovery is expected before the end of 2015- International: Recovery forecasts maintained for 2014
Market environment
- Rejuvenation of the fleet- Disposal of assets : on-going review to sell older assets
Fleet
- Continue international expansion through: - External growth - Opening of new branches
International expansion
French Network
Confidential
Confidential
Q&A
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