Touax: Q1 2020 REVENUE FROM ACTIVITIES: +10.4%

PRESS RELEASE                                                                                                                       Paris, 15 May 2020 – 5.45 p.m.

YOUR OPERATIONAL LEASING SOLUTION FOR SUSTAINABLE TRANSPORTATION

Q1 2020 REVENUE FROM ACTIVITIES: +10.4% 

ANALYSIS OF REVENUE FROM ACTIVITIES

Revenue from activities increased 10.4% to €41.2 million in Q1 2020 (€40.7 million at constant scope and currency²), compared with €37.3 million in Q1 2019.

This performance was chiefly driven by a 14.3% rise in leasing revenue on owned equipment (€13.3 million) and the sale of equipment, which totalled €8.0 million, up from €4.1 million in Q1 2019.

Syndication fees and capital gains not linked to recurring activities came to €0.2 million, compared with €0.4 million a year earlier.

ANALYSIS OF CONTRIBUTIONS BY DIVISION

Revenue from the Freight Railcars division totalled €16 million, up 18.7% from €13.5 million a year earlier.

• Leasing revenue was up 10.9% at €14.8 million over the period, thanks to an increase in lease rates and a sustained utilisation rate (87.5% on average over the quarter).
• Sales of freight railcars and syndication margins both increased, with one disposal to investors in February 2020. Touax retains the management of this equipment.

At the River Barges division, revenue was stable over the quarter, at €2.9 million.

At the Containers division, revenue increased 9.1% to €21.3 million over the period.

• The asset investment strategy conducted over the past two years boosted growth in leasing revenue on owned equipment by 65.5% to €2.6 million (+60.6% to €2.5 million at constant currency). As expected, leasing revenue from managed equipment declined €10.9 million (€10.5 million at constant currency) due to the temporary impact of the reduction in the fleet under management. The average utilisation rate over the period stood at 95.7%, compared with 97.7% in Q1 2019, which testifies to the resilience of Group’s long-term leasing businesses amid the Covid-19 pandemic that hit world growth in the first quarter.
• Brisk momentum in the trading of new and used containers generated growth in container sales which reached €6.2 million at 31 March 2020, compared with €2.7 million in Q1 2019.

Revenue from the sale of modular buildings in Africa, which is booked to "Miscellaneous”, came to €0.9 million for the period.

OUTLOOK

Touax generated a solid performance in Q1 2020, which vindicates its strategy of refocusing on three long-term equipment leasing businesses serving sustainable forms of transportation, a drive launched in 2018.

As a result of the coronavirus outbreak, the IMF is expecting the world economy to shrink by 3% in 2020, with a rally to follow in 2021³. While it is still too early to gauge the impact of Covid-19 on world trading volumes and production capacities, the freight railcars and containers sectors remain essential to reviving the global economy. In the near term, our priority is to ensure the continuity of our business operations for clients worldwide, while guaranteeing the health and safety of our employees through remote working.

On 1 January 2020, 76% of our leasing revenue was secured under contract. The Group’s business activity is therefore resilient. We are assessing and monitoring risks on a daily basis. Over the coming quarters, our performance could be affected depending on the timing and nature of the recovery. As at end-April, we had seen very few delays in terms of client payment deadlines. The other risks we are assessing concern the lease and sale of our equipment. While we are seeing lower-than-anticipated numbers of container redeliveries, our new lease-out figures are also down. River barge activity is stable and some of our railcar customers are taking a wait-and-see approach.

While there are no clear trends emerging at this stage, 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

• 24 June 2020:   Annual General Meeting
• 9 September 2020: First-half 2020 results – SFAF presentation
• 11 September 2020: Conference call - first-half 2020 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 SCA 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 income from activities generating leasing revenue, sales of equipment, syndication fees and other capital gains.

² Based on a comparable structure and average exchange rates in Q1 2019.

³ source IMF (https://www.imf.org/en/Publications/WEO/Issues/2020/04/14/weo-april-2020)

Attachment

• PR final 150052020 -Q1 2020- EN