Touax: Nine-Month Revenue From Activities: +4.9%

PRESS RELEASE                                                                                                           Paris, 15 November 2019 – 5.45 p.m.

YOUR OPERATIONAL LEASING SOLUTION

NINE-MONTH REVENUE FROM ACTIVITIES: +4.9%

ANALYSIS OF REVENUE FROM ACTIVITIES

Q3 2019 revenue totalled €40.1 million vs. €39.6 million in Q3 2018, an increase of 1.4%.

Over the first nine months of the year, revenue from activities totalled €119.6 million (€115.7 million at constant scope and currency), up 4.9% compared to the same period in 2018.

Revenue from leasing activities amounted to 99.8 million euros (96.8 million euros at constant scope and currency) at 30 September 2019, including a 10% increase in the Leasing Revenue on owned equipment (36.9 million euros). Leasing Revenue from leasing activities stood at 99.9 million euros in the first nine months of 2018.

Sales rose to €19 million (€14.2 million at constant scope and currency), compared to €12.9 million for the first nine months of 2018, thanks to the development of trading activity in new and used containers achieved as part of the normal cycle of activity.

Syndication fees and capital gains not linked to recurring activities came to €0.8 million versus €1.2 million the previous year.

ANALYSIS OF THE CONTRIBUTION BY DIVISION

§  Revenue from the Freight Railcars division totalled €43.5 million in the first nine months of 2019, an 8.3% increase from €40.2 million the previous year.

Leasing revenue increased by 10% to €42.7 million over the period, thanks to an increase in leasing prices and in the utilization rate. The utilization rate was underpinned by a robust market and averaged 88.4% in the first nine months of 2019 versus 84.4% the previous year. These increases underscore the improvement in the operating performance of the Railcars division.

Sales of railcars and syndication margins decreased by €0.5 million, attributable to lower volumes over the first nine months of the year compared to the same period in 2018.

• Revenue from the River Barges division came to €9 million compared to €11.5 million in the first nine months of 2018, during which barges were sold for €1 million. Revenue from leasing activity totalled €9 million compared to €9.4 million the previous year and was stable in Europe but down slightly in South America.
• Revenue from the Containers division came to €60.9 million at the end of September 2019 compared to €57.1 million in the first nine months of 2018, excluding foreign exchange effects.

Underpinned by investments in its own assets over the past 18 months, revenue from the leasing of Group-owned equipment increased to €5.2 million, an increase of +54% at constant currency, while revenue from investor-owned equipment fell to €37.4 million (€35.2 million at constant currency) compared with €45.8 million the previous year, attributable to the reduction in the fleet under management following sales of used containers as part of the normal cycle of activity and the end of finance lease contracts. Despite a weaker global growth environment, the average utilization rate over the period remained high at 97.5% compared to 98.9% in the first nine months of 2018.

Sales of containers reached €12.4 million at September 30, 2019 compared to €5.8 million over the same period in 2018, up 112.6% (+€5.8 million at constant currency) thanks to buoyant trading activity in new and used containers. Syndication fees were stable at €0.4 million.

§  Revenue from the conserved activity of sales of modular buildings in Africa presented under the "Miscellaneous” line increased by 27.7% over the first nine months of 2019 to €5.7 million.

OUTLOOK

The strategic refocusing on the three long-term transport equipment leasing businesses is reaping rewards and business is expected to continue to grow.

European rail freight is now very close to the peak number of tonne-kilometres transported in Europe in 2007. It is expected to continue to increase thanks to development of rail infrastructure, increasing demand for cross-border rail trade, greater use of greener and inter-modal transport solutions, and the development of leasing in the wake of the liberalization of the sector. These positive trends combined with the renewal of the existing fleet should support the Group’s operational improvements.

The European river transport market continues to be underpinned by the increase in the transport of building and biomass materials, which in turn is driving requirements for river barges, whereas current demand is weaker in both North and South America.

Although slowing, global economic growth is expected to be 3.2% in 2020 (latest IMF forecasts), which should continue to support a high utilization rate of the existing container fleet. On the other hand, the Group’s strategy to develop its trading activity in new and used containers and invest in its own assets will have a positive impact on profitability.

UPCOMING EVENTS

• 28 February 2020:           2019 Revenue from activities
• 25 March 2020:                 2019 annual results – SFAF presentation
• 27 March 2020:                 Conference call to present 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 €1.2bn 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
Managing partners                                                                                                  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.

Attachment

• Press Release 15 November 2019 - Q3-2019 revenues