BUSINESS STILL IMPACTED BY COVID-19
OUTBREAK, YET SOLID RESILIENCE IN DOMESTIC AND V&T
ACTIVITIES
STRONG REBOUND IN THE US
LOWERED BREAKEVEN POINT & LIMITED CASH
CONSUMPTION
ROLLOUT OF CONNECT ON TRACK, WITH FIRST
SOLUTIONS & SERVICES DELIVERIES
Regulatory News:
Europcar Mobility Group (Paris:EUCAR):
Q1 2021 HIGHLIGHTS1
- Revenue: €356m, down –36%2, still reflecting the impact of
travel restrictions in Europe but showing also a good performance
of domestic markets with resilient activities. The US, Australia
and New Zealand show good signs of recovery
- A strong improvement in margin after direct costs: +2
percentage points to 24.0% vs Q1 2020 thanks to significant
reduction in the average fleet (-36% to 187,000 vehicles) and sharp
increase in utilization rate (69.9% in Q1 2021) combined with solid
cost reductions, demonstrating the Group’s flexible model and fast
adaptation
- Breakeven point lowered thanks to continued cost measures
adaptation on Network and HQs, as reflected by the limited
fall-though: 11% in Q1 2021 versus Q1 2019 (Corp. EBITDA loss vs
revenue loss)
- Significant reduction in losses at Corporate EBITDA (IFRS 16):
-€44m in Q1 2021 (vs -€64m in Q1 2020).
- Pretax result of -€82m versus -€135m in Q1 2020
- Limited increase in Corporate net debt in Q1 2021, by €106m
versus €188m in Q1 2020. Q1 usually cash-out quarter due to
business seasonality
- Robust liquidity position: €515m as at 31 March 2021, plus
€225m of new liquidity fleet financing
OUTLOOK
- Cautious view on Q2 2021, still impacted by the pandemic and on
H2 2021 due to vaccination campaigns not as fast as planned,
lockdowns and travel restrictions, very limited long-haul traffic
Hence, the Group is not yet in a position to provide guidance for
the FY 2021. Nevertheless, the Group anticipates revenue growth in
2021, as illustrated by the current rebound in the US.
- Monitoring closely the shortage of semiconductor components at
OEMs level
- Focusing on delivering the first steps of its strategic
“Connect” roadmap, ready to capture growth and return to
profitability, in a context of market recovery
- Cash consumption in 2021 expected to be lower than in 2020
Caroline Parot, CEO of Europcar Mobility Group,
declared:
“Over the first quarter 2021, the Travel & Leisure
environment continued to be globally challenging in Europe as
lockdowns, travel restrictions and stringent sanitary constraints
were still in place.
In this context, Europcar Mobility Group recorded a decline in
revenue in Europe vs Q1 2020, but with resilient performance in
domestic markets and Vans & Trucks, while experiencing a strong
rebound in the US at the end of March. As part of its cost
adaptation to mitigate the impact of the crisis, the Group
continued to manage daily operations with strict discipline,
allowing for further reduction of its breakeven point and cash
optimization.
The roll out of our strategic roadmap, “Connect”, is well on
track, with significant achievements and deliveries over the course
of the first quarter, with, notably the implementation of new
go-to-market approaches, by Service Line, and the successful launch
of a very innovative, highly flexible subscription model for
professionals.
Regarding Q2 2021 onwards, our views remain cautious.
Nevertheless, we see reasons to be reasonably optimistic regarding
what is ahead of us. We are confident that we will rebound strongly
as soon as the sanitary / market conditions improve, in line with
higher vaccination rates, as demonstrated by our US business.”
Europcar Mobility Group invites you to its Q1 2021 Results
Conference Call on:
Thursday, May 6th, at 6:00pm CET
Dial-in Access telephone numbers: France : +33 (0)1 76 77
25 07 Germany: +49 (0)89 2030 35526 UK: +44 (0)330 336 9434 USA: +1
646-828-8193 Confirmation Code: 7731252
Webcast live:
You can watch the presentation on the following link:
https://globalmeet.webcasts.com/starthere.jsp?ei=1451977&tp_key=fd0dae40a8
Slides related to first quarter 2021 results are available on
the Group’s website, in the “Financial documentation” section:
https://investors.europcar-group.com/results-center
KEY HIGHLIGHTS OF FIRST QUARTER 2021
Over the first quarter 2021, the Travel & Leisure industry
continued to be globally challenging in Europe overall as
lockdowns, travel restrictions and stringent sanitary constraints
were still in place, as a consequence of slow vaccination campaigns
rollout. In the second part of the quarter, there were however very
positive domestic trends in the US, Australia and New Zealand owing
to widespread campaigns and government restrictions ease: airline
booking data improved with the reopening of the economy, in line
with the recovery of domestic airline traffic.
Against this backdrop, Europcar Mobility Group recorded a
decline in revenue in Europe but with resilient performance in
domestic markets and Vans & Trucks while experiencing a rebound
in the US in March. As part of its cost adaptation to mitigate the
impact of the crisis, the Group continued to run a strict cost
discipline, allowing it to reduce further its breakeven point
through massive fleet reduction and reduction of semi-fixed and
fixed costs. All expenses were carefully monitored, with an
emphasis on limiting them to essential needs (non-fleet capital
expenditure limited to core IT projects, strong focus on collection
and rigorous management of payables).
This strong cost control led the Group to minimize its cash
consumption to -€106m in Q1 2021 versus -€188m in Q1 2020, leading
to a sound financial position of €199m Corporate net debt as at 31
March 2021.
Q1 2021 financial
results
All data in €m, except if mentioned
Q1 2021
Q1 2020
% Change
% Change at constant perimeter
and currency
Number of rental days (million)
11.6
17.4
-33.3%
-33.3%
Average Fleet (thousand)
187.3
293.0
-36.1%
-36.1%
Financial Utilization rate
69.9%
66.4%
3.5pt
3.5pt
Total revenues
355.7
556.9
-36.1%
-35.8%
Adjusted Corporate EBITDA (IFRS 16)
(44.4)
(64.1)
Operating Income
(84.4)
(88.3)
Income before taxes
(82.1)
(135.1)
Net profit/loss
(76.7)
(105.0)
Corporate Free Cash Flow
(100.0)
(136.1)
Corporate Net Debt at end of the period
198.7
1 068.1
No change in perimeter between Q1 2021 and Q1 2020. As a
reminder, the last 2 acquisitions were Fox Rent A Car in the US
consolidated in November 2019 and franchisees in Norway and Finland
in July 2019.
Management Account presentation: Q1 2020 and Q1 2021
accounts are presented under IFRS 16, unless explicitly
mentioned
PROFIT & LOSS IN THE FIRST QUARTER 2021
First quarter is traditionally the low season for the Group’s
activity while fixed costs are stable throughout the year.
Revenue and Profit & Loss are analyzed through the evolution
at constant perimeter and exchange rates.
All data in €m
Q1 2021
Q1 2020
% Change at constant perimeter
and currency
Q1 2019
% Change at constant
perimeter
Total revenue
355.7
556.9
-35.8%
619.4
-42.6%
Average fleet size ('000)
187.3
293.0
-36.1%
292.8
-36.0%
Rental days volume (in Million)
11.6
17.4
-33.3%
19.0
-39.0%
Utilization rate
69.9%
66.4%
+3.5pt
73.5%
(3.6)pt
Fleet holding costs
(114.3)
(184.2)
37.6%
(177.6)
35.6%
Variable costs
(131.6)
(211.6)
37.4%
(219.9)
40.2%
Total fleet costs & variable costs
(245.9)
(395.7)
37.5%
(397.5)
38.1%
Sales and marketing expenses
(1.9)
(8.2)
76.1%
(9.5)
79.6%
Fleet financing costs
(22.6)
(30.5)
25.1%
(32.7)
30.9%
Margin after Direct costs
85.3
122.5
-30.4%
179.7
-52.5%
In % of revenue
24.0%
22.0%
+1.9pt
29.0%
(5.0)pt
Network
(60.0)
(101.4)
40.3%
(102.2)
41.3%
HQ Costs
(69.8)
(85.2)
17.9%
(92.0)
24.2%
Fixed and semi-fixed costs
(129.7)
(186.6)
30.0%
(194.2)
33.2%
Adjusted Corporate EBITDA (IFRS 16)
(44.4)
(64.1)
(14.5)
IFRS 16 impact on premises and parking
(20.9)
(20.3)
(19.2)
IFRS 16 impact on the fleet and financing costs & variable
costs
(5.3)
(6.6)
(5.6)
Adjusted Corporate EBITDA excl. IFRS-16
(70.7)
(91.1)
(39.3)
Depreciation – excluding vehicle fleet
(35.7)
(37.1)
4.6%
(37.5)
4.8%
Non-recurring income and expense
(8.8)
(7.0)
(12.1)
Other financing income and expense not related to the fleet
(16.7)
(26.8)
37.2%
(30.0)
44.3%
Net financial restructuring costs
23.6
-
of w/h non-recurring impact
(12.3)
-
of w/h financial result impact (IFRIC 19 & Transaction costs)
35.9
-
Income before taxes
(82.1)
(135.1)
(94.1)
Income tax
5.4
30.1
23.8
Share of profit/(loss) of associates
-
-
(0.1)
Net profit/(loss) excl. IFRS 16
(78.0)
(103.2)
(66.7)
Net profit/(loss) incl. IFRS 16
(76.7)
(105.0)
(70.4)
Variable costs: Revenue related costs, rental related costs,
fleet operating costs and others
Q1 2019 is at constant perimeter versus Q1 2021. Non-audited
figures figures
1. Revenue in Q1 2021
Revenue in Q1 2021: Cars still impacted
and Vans & Trucks recording positive growth
As explained in previous statements and reflected in the revenue
table below, the Group ‘s organization is now structured around 3
Service Lines as to respond to specific mobility use cases and
design the appropriate offers and associated customer journey.
- Leisure customers: expectations on price competitiveness
and speed to serve. Main use cases: Travel & Leisure
- Professional customers: planned and contacted operations
with flexibility on solutions, quality of service as a must and a
strong network. Main use cases: vehicles replacement, business
travel, fleet services, local mobility for businesses
- Proximity customers: looking for higher accessibility of
the service. Main use cases: vehicle substitute for long term and
on demand solutions like carsharing.
On a proforma basis (i.e. at constant perimeter and exchange
rates), total revenue decreased by -36% to €356m in Q1 2021 with
rental days -33%. Unsurprisingly, the Group remained heavily
impacted by the travel ban and various lockdown restrictions.
As the Group recorded an extremely solid performance over the
first two months of 2020 (+3.6% revenue growth on a proforma basis
or +4.3% on constant perimeter), revenue in Q1 2021 has shown a
contrasted performance month by month: -44% in January, -45% in
February and –11% in March.
Overall, during the quarter, Car Leisure business segments
continued to be impacted by mobility restrictions but this was
partly offset by domestic markets, which continued to demonstrate
resilience, and by the US, Australia and New Zealand which recorded
positive revenue growth. Vans & Trucks performed extremely
positively, back to 2019 levels. It benefited from sustained demand
in domestic markets, driven by home delivery / e-commerce and the
launch of new service / solutions.
€m
Q1 2021
Q1 2020
% Change
% Change at constant
currency
Proximity
38.6
73.3
-47.3%
-47.6%
Professional
130.1
187.6
-30.7%
-30.7%
Leisure
87.0
188.2
-53.7%
-53.0%
CARS
255.7
449.0
-43.1%
-42.7%
VANS & TRUCKS
85.1
79.0
7.6%
7.6%
Rental Revenues (incl. Mobility)
340.8
528.1
-35.5%
-35.2%
Other income (incl. franchisee)
14.9
28.8
-48.2%
-47.7%
Total Revenues
355.7
556.9
-36.1%
-35.8%
CARS: revenue decreased by -43% to €255.7m in Q1 2021
mainly due to volume effect. The analysis below details the
performance of CARS by Service Line:
- Leisure Service Line, which mainly relates to activity
in airports and railways, has been heavily impacted by the absence
of international traffic, due to restrictive measures re-imposed in
many countries. The low cost segment, however, proved much more
resilient than the rest of the Service Line, driven by the strong
rebound of Fox-Rent-A-Car in the US (+17% over the quarter), as
Americans started to travel again domestically, thanks to a speedy
vaccine distribution.
- Professional Service Line: was less impacted since
products such as long-term solutions (LTS) are bringing agility and
flexibility to businesses in an uncertain environment.
- Proximity Service Line: the 2 segments (car replacement
and local mobility on-demand) recorded various trends: given the
nature of the business (long-term), car replacement recorded a
limited decline. Within local mobility on-demand, traditional car
rental was heavily impacted by movement restrictions combined with
closure of stations. Conversely, car-sharing proved resilient, with
close to 90% of revenue driven by repeat business, hence confirming
the shift of urban customers towards alternatives to vehicle
ownership.
VANS & TRUCKS: revenue grew by close to +8% to €85m
in Q1 2021 compared to Q1 2020, back to 2019 levels. The strategy
towards the development of Supersites and deployment of long-term
solution offers is paying-off. In particular, Germany, the UK and
Italy, significantly contributed to the global performance.
2. From MADC to Adjusted Corporate EBITDA in Q1 2021
MADC (Margin after Direct
Costs)
The Group remained strongly focused on adapting its fleet
holding and variable costs through massive fleet reduction, thanks
to its flexible model, based on buy-back programs and long-term
relationships with OEMs. The Group reduced its fleet size by -36%
on average in Q1 2021, to a low point of 187,000 vehicles compared
to the same period last year, and in line with the decrease in
rental days (-33% in Q1 2021). This capacity to adjust the fleet
adequately allowed the Group to improve its utilization rate by 3.5
basis points to 69.9% YoY.
In all, the decrease in fleet holding costs and variable costs
was higher than revenue decline, i.e. by -38% to €246m.
Fleet financing costs decreased at a lesser rate than revenue,
reflecting a slight increase in financing costs, in addition to a
higher cost per unit due to a higher proportion of Vans &
Trucks in the Group’s fleet.
MADC totaled €85m in Q1 2021 vs €123m in Q1 2020, with an
improved margin on revenue at 24.0% in Q1 2021 versus 22.0% in Q1
2020. This performance highlights the positive impact of all
adaptation measures taken by the Group to mitigate the impact of
the crisis.
Adjusted Corporate EBITDA, an
outstanding performance: removing 30% of fixed and semi-fixed
costs
The Group continued to successfully reduce its semi-fixed and
fixed costs by optimizing respectively its network and HQs costs,
adapting them to the lower level of activity, thanks to the major
restructuring plans launched in 2020. This solid performance is
enhanced by furlough measures, reduction in external spending,
pursued renegotiations of rents with network and HQ landlords,
station closures (permanent and temporary) or reduced opening
hours. At the end of March 2021, 65% of stations were still closed
or operating with limited hours.
The Group achieved an outstanding performance by removing -30%
of those semi-fixed and fixed costs in Q1 2021 compared to Q1 2020,
allowing losses at Corporate EBITDA to be reduced at -€44m in Q1
2021 versus -€64m in Q1 2020.
As a result, the Group recorded a limited 11% fall-through in
Corporate EBITDA versus Q1 2019, despite a €260m drop in
revenue.
3. From Adjusted Corporate EBITDA to Group net income
Financial income and expenses not related to the fleet:
net financing costs not related to the fleet decreased to -€16.7m
in Q1 2021 from -€26.8m in Q1 2020, due to the positive impact of
the conversion of the 2024 Bonds and 2026 Bonds into equity,
partially offset by new interests on state guaranteed loans
incurred in Q1 2021.
Non-recurring expenses were contained to -€8.8m in Q1
2021 versus -€7.0m in Q1 2020 and -€12.1m in Q1 2019. As part of
the continuation of the Reboot plan, initiated in 2020, they
primarily reflected adaptation measures in HQs and Network that
have been implemented to deliver a fast payback in adapting the
cost base to the new size of the company.
Net financial restructuring costs: +€23.6m in Q1 2021
breaking down into -€12.3m of restructuring fees (accounted in the
P&L) and +€35.9m non-cash income (including +€48m booked under
IFRIC 19 accounting standards, coming from the difference between
the book value of the debt converted into equity instruments and
the fair value of these instruments at the transaction date; and
-€12m of previous transaction cost write-off).
Pretax losses, as a result of the above, were
significantly reduced from -€135m in Q1 2020 to -€82m in Q1
2021.
Tax: +€5.4m in Q1 2021 versus +€30m in 2020, reflecting a
cautious approach with lower activation of tax losses carry-forward
compared to the same period last year.
Net income: the Group posted a net loss of -€76.7m in
2021 compared to -€105m in the same period last year.
CORPORATE FREE CASH FLOW & CORPORATE NET DEBT IN Q1
2021
Corporate Operating Cash Flow in Q1 2021
The Group successfully reduced its cash consumption at Corporate
Operating Cash Flow to €100m in Q1 2021 versus €136m in Q1 2020.
This reflects Adjusted Corporate EBITDA of -€44m, non-fleet capex
of -€12m limited to the Group’s digital transformation, -€9m of
non-recurring expenses mainly linked to adaptation costs with fast
pay back, -€5m for the change in working capital and provisions,
-€3m income tax and -€26m lease liability cash out under IFRS 16
application on network, airport and HQ lease contracts.
Compared to Q1 2019, the deterioration of Corporate Operating
cash flow remained fairly limited (~-€20m) while the shortfall in
revenue and Corporate EBITDA was much larger (respectively ~€260m
and ~€30m), highlighting the extreme agility of the Group to adapt
to the challenging situation.
Corporate Net debt3 at March 31, 2021
Following its financial restructuring, proforma Corporate net
debt totaled €93m as at December 31st, 2020. This translated into
€199m as at March 31th, 2021, mainly reflecting the negative
operating free cash flow.
The Group recorded sound Corporate liquidity of €515m as at 31
March 2021 versus €587m at 31 December 2020 after debt
restructuring.
ROLLOUT OF CONNECT ON TRACK, WITH FIRST SOLUTIONS &
SERVICES DELIVERIES DURING Q1 2021
Over the course of Q1 2021, the Group delivered the first steps
of its Connect transformation roadmap.
- To meet an increasing need for greater flexibility, and in line
with the implementation of new go-to-market approaches, by Service
Lines, Europcar Mobility Group launched innovative offers to
facilitate the day-to-day life of professionals, thanks to
flexible, mid & long-term subscription solutions: “Flex”,
“Superflex”, “DuoFlex”. These offers are modern and disruptive
alternatives to fixed-term leasing or ownership, as they are based
on the convenience of a monthly subscription, without the need to
commit on a set, long duration. The launch of these offers in March
2021 was met with success among their target audience, translating
into an increase in commercial leads of 76% (vs February
2021).
- Following the strategic partnership with Telefonica and Geotab
signed on October 2020, the “One Connected Fleet” program reached
another key milestone recently, sealing a deal with Free2Move, the
connectivity platform of Stellantis. Through this international
partnership, Free2Move will provide the Group with seamless access
to vehicle telemetry data such as geolocation, fuel level, mileage
and maintenance alerts in accordance with data protection
regulations. This data will be processed to help improve customer
experience and optimize business applications, as well as internal
processes such as fleet inventory management, vehicle delivery and
collection, vehicle maintenance, vehicle return, and more.
- Phase 1 steps of the Group’s brand new, unified and strongly
integrated IT system, were successfully reached, allowing, as
planned, a roll-out over the course of Q2 onwards, beginning with
Portugal, before a global implementation.
This is a key milestone in the Group’s journey towards at scale,
fully digitized customer journeys and operations.
On a longer-term perspective, “Connect” will significantly
transform the model and profile of the Group, enabling:
- Re-balancing of revenue streams, with less seasonality.
- Leaner organization and operations, paving the way for enhanced
cost efficiency / profitability & improved FCF generation.
- Digitization of customer journeys, at scale, cross-brands &
geographies.
FULL YEAR 2021 OUTLOOK
The Group is anticipating the following for the rest of the
year:
- Second quarter 2021 will still be impacted by the
pandemic;
- Cautious views on second half of 2021, given a high level of
uncertainties related to the pace of vaccination campaigns, travel
restrictions in Europe, and limited long-haul traffic.
Hence the Group is not yet in a position to provide guidance
for the FY 2021.
Nevertheless, the rebound in the US, Australia / New Zealand
gives positive perspectives regarding the European restart.
Combined with resilient domestic revenue generation driven by Vans
& Trucks and first positive intake for new service solutions of
Professional Services lines, the Group confirms it is confident
that 2021 revenues will increase compared to 2020.
The strong cost adaptation already achieved at Network and HQ
level, combined with the flexibility of the Group’s model, will
contribute to improving profitability and limiting cash consumption
compared to 2020.
Liquidity will remain a strong focus throughout the Group, with
selective capital allocation and prioritization.
AGENDA
General shareholders’ meeting: June 30th, 2021
About Europcar Mobility Group
Europcar Mobility Group is a major player in mobility markets
and listed on Euronext Paris. The mission of Europcar Mobility
Group is to be the preferred “Mobility Service Company” by offering
attractive alternatives to vehicle ownership, with a wide range of
mobility-related services and solutions: car rental and light
commercial vehicle rental, chauffeur services, car-sharing,
scooter-sharing and private hire vehicle (PHV – rental to “Uber
like” chauffeurs). Customers’ satisfaction is at the heart of the
Group’s mission and all of its employees and this commitment fuels
the continuous development of new services. Europcar Mobility Group
operates through a diversified portfolio of brands meeting every
customer specific needs and use cases, be it for 1 hour, 1 day, 1
week or longer ; its 4 major brands being: Europcar® - the European
leader of car rental and light commercial vehicle rental, Goldcar®
- the low-cost car-rental Leader in Europe, InterRent® – ‘mid-tier’
car rental and Ubeeqo® – one of the European leaders of round-trip
car-sharing (BtoB, BtoC). Europcar Mobility Group delivers its
mobility solutions worldwide solutions through an extensive network
in over 140 countries (including wholly owned subsidiaries – 18 in
Europe, 1 in the USA, 2 in Australia and New Zealand – completed by
franchises and partners).
Forward-looking statements
This press release includes forward-looking statements based on
current beliefs and expectations about future events. Such
forward-looking statements may include projections and estimates
and their underlying assumptions, statements regarding plans,
objectives, intentions and/or expectations with respect to future
financial results, events, operations and services and product
development, as well as statements, regarding performance or
events. Forward-looking statements are generally identified by the
words “expects”, “anticipates”, “believes”, “intends”, “estimates”,
“plans”, “projects”, “may”, “would”, “should” or the negative of
these terms and similar expressions. Forward looking statements are
not guarantees of future performance and are subject to inherent
risks, uncertainties and assumptions about Europcar Mobility Group
and its subsidiaries and investments, trends in their business,
future capital expenditures and acquisitions, developments in
respect of contingent liabilities, changes in economic conditions
globally or in Europcar Mobility Group’s principal markets,
competitive conditions in the market and regulatory factors. Those
events are uncertain; their outcome may differ from current
expectations which may in turn materially affect expected results.
Actual results may differ materially from those projected or
implied in these forward-looking statements. Any forward-looking
statement contained in this press release is made as of the date of
this press release. Other than as required by applicable law,
Europcar Mobility Group does not undertake to revise or update any
forward-looking statements in light of new information or future
events. The results and the Group's performance may also be
affected by various risks and uncertainties, including without
limitation, risks identified in the "Risk factors" of the Universal
Registration Document registered by the Autorité des marchés
financiers on May 6, 2020 and also available on the Group's
website: www.europcar-mobility-group.com. This press release does
not contain or constitute an offer or invitation to purchase any
securities in France, the United States or any other
jurisdiction.
Regulated information related to this press
release is available on the website:
https://investors.europcar-group.com/results-center
www.europcar-mobility-group.com
Appendix 1 – P&L (Management account) in Q1 2021
(including IFRS 16)
All data in €m
Q1 2021
Q1 2020
% Change
% Change at constant perimeter
and currency
Total revenue
355.7
556.9
-36.1%
-35.8%
Average fleet size ('000)
187.3
293.0
-36.1%
-36.1%
Rental days volume (in Million)
11.6
17.4
-33.3%
-33.3%
Utilization rate
69.9%
66.4%
+3.5pt
+3.5pt
Fleet holding costs*
(114.3)
(184.2)
37.9%
37.6%
Variable costs
(131.6)
(211.6)
37.8%
37.4%
Total fleet costs & variable costs
(245.9)
(395.7)
37.9%
37.5%
Sales and marketing expenses
(1.9)
(8.2)
76.1%
76.1%
Fleet financing costs
(22.6)
(30.5)
25.9%
25.1%
Margin after Direct costs
85.3
122.5
-30.4%
-30.4%
In % of revenue
24.0%
22.0%
+2.0pt
+1.9pt
Network
(60.0)
(101.4)
40.9%
40.3%
HQ Costs
(69.8)
(85.2)
18.2%
17.9%
Fixed and semi-fixed costs
(129.7)
(186.6)
30.5%
30.0%
Adjusted Corporate EBITDA (IFRS 16)
(44.4)
(64.1)
IFRS 16 impact on premises and parking
(20.9)
(20.3)
IFRS 16 impact on the fleet and financing costs & variable
costs
(5.3)
(6.6)
Adjusted Corporate EBITDA excl. IFRS-16
(70.7)
(91.1)
Depreciation – excluding vehicle fleet
(35.7)
(37.1)
3.9%
4.6%
Non-recurring income and expense
(8.8)
(7.0)
Other financing income and expense not related to the fleet
(16.7)
(26.8)
37.6%
37.2%
Net financial restructuring costs
23.6
-
Income before taxes
(82.1)
(135.1)
Income tax
5.4
30.1
Net profit/(loss) excl. IFRS 16
(78.0)
(103.2)
Net profit/(loss) incl. IFRS 16
(76.7)
(105.0)
* Fleet holding costs do not include the estimated interests
included in operating lease. They are disclosed within the fleet
financing expenses in the Management Accounts
Appendix 2 – IFRS Income Statement
In €m
Q1 2021
Q1 2020
After IFRS 16
After IFRS 16
Revenue
355.7
556.9
Fleet holding costs
(120.1)
(194.7)
Fleet operating, rental and revenue related costs
(131.6)
(211.6)
Personnel costs
(88.4)
(132.0)
Network and head office overhead costs
(43.0)
(64.5)
Non-fleet depreciation, amortization and impairment expense
(35.7)
(37.1)
Other income
(0.2)
1.7
Current operating income
(63.2)
(81.3)
Other non-recurring income and expense
(21.1)
(7.0)
Operating income
(84.3)
(88.3)
Net fleet financing expenses
(16.9)
(20.0)
Net non-fleet financing expenses
(15.3)
(18.2)
Net other financial expenses
34.4
(8.5)
Net financing costs
2.3
(46.7)
Profit/(loss) before tax
(82.0)
(135.1)
Income tax benefit/(expense)
5.4
30.1
Net profit/(loss) for the period
(76.7)
(105.0)
Appendix 3 – Reconciliation from consolidated accounts to
management accounts (including IFRS 16)
All data in €m
Q1 2021
Q1 2020
Adjusted Consolidated EBITDA
68.1
118.8
Fleet depreciation
(55.8)
(100.6)
Fleet depreciation (IFRS16)
(34.2)
(51.8)
Total Fleet depreciation
(90.0)
(152.4)
Interest expense related to fleet operating leases (estimated)
(5.7)
(10.5)
Net fleet financing expenses
(16.9)
(20.0)
Total Fleet financing
(22.6)
(30.5)
Adjusted Corporate EBITDA
(44.4)
(64.1)
Amortization, depreciation and impairment expense
(35.7)
(37.1)
Reversal of Net fleet financing expenses
16.9
20.0
Reversal of Interest expense related to fleet operating leases
(estimated)
5.7
10.5
Adjusted recurring operating income
(57.5)
(70.8)
Impairment expense on non-current assets
0.0
-
Interest expense related to fleet operating leases (estimated)
(5.7)
(10.5)
Recurring operating income
(63.2)
(81.3)
Appendix 4 – IFRS Balance Sheet
In €m
March 2021
Dec 2020
After IFRS 16
After IFRS 16
Assets
Goodwill
1 005.2
998.1
Intangible assets
1 059.2
1 055.8
Property, plant and equipment
404.4
413.2
Other non-current financial assets
52.4
54.1
Deferred tax assets
181.1
176.9
Total non-current assets
2 702.3
2 698.1
Inventory
16.9
16.1
Rental fleet recorded on the balance sheet
2 054.3
2 197.2
Rental fleet and related receivables
463.9
504.0
Trade and other receivables
361.2
382.0
Current financial assets
23.4
23.2
Current tax assets
32.2
29.0
Restricted cash
85.6
82.0
Cash and cash equivalents
348.0
364.6
Total current assets
3 385.5
3 598.2
Total assets
6 087.8
6 296.3
Equity
Total equity attributable to the owners of Europcar Mobility
Group
1 475.3
189.7
Non-controlling interests
0.5
0.5
Total equity
1 457.8
190.3
Liabilities
Financial liabilities
1 472.5
2 105.2
Non-current financial instruments
53.9
60.1
Employee benefit liabilities
161.0
167.2
Non-current provisions
10.4
10.8
Deferred tax liabilities
217.4
214.8
Other non-current liabilities
0.1
0.1
Total non-current liabilities
1 915.3
2 558.3
Current portion of financial liabilities
1 515.7
2 209.2
Employee benefits
2.6
2.6
Current provisions
208.2
214.2
Current tax liabilities
44.2
46.1
Rental fleet related payables
447.6
555.1
Trade payables and other liabilities
496.6
520.5
Total current liabilities
2 714.8
3 547.8
Total liabilities
4 630.1
6 106.0
Total equity and liabilities
6 087.8
6 296.3
Appendix 5 – IFRS Cash Flow Statement
In €m
Q1 2021
Q1 2020
After IFRS 16
After IFRS 16
Profit/(loss) before tax
(82.0)
(135.1)
Reversal of the following items
Depreciation and impairment expenses on property, plant and
equipment
27.1
27.5
Amortization and impairment expenses on intangible assets
8.6
6.9
Impairment of assets
-
2.7
Changes in provisions and employee benefits (1)
(11.2)
(17.9)
Recognition of share-based payments
0.1
0.1
Profit/(loss) on disposal of assets
0.1
0.0
IFRIC 19 impact (2)
(48.4)
-
Other non-cash items
(5.2)
0.7
Total net interest costs
35.3
40.1
Amortization of transaction costs (3)
14.1
2.9
Net financing costs
49.3
43.0
Net cash from operations before changes in working capital
(61.7)
(71.9)
Changes to the rental fleet recorded on the balance sheet (4)
180.5
352.5
Changes in fleet working capital
(69.8)
57.6
Changes in non-fleet working capital
(4.6)
(2.7)
Cash generated from operations
44.4
335.5
Income taxes received/paid
(2.9)
(3.2)
Net interest paid
(22.7)
(20.4)
Net cash generated from (used by) operating activities
18.8
311.9
Acquisition of intangible assets and property, plant and equipment
(5)
(13.0)
(14.6)
Proceeds from disposal of intangible assets and property, plant and
equipment
0.7
0.7
Acquisition of subsidiaries, net of cash acquired and other
financial investments
3.1
3.3
Net cash used by investing activities
(9.2)
(10.6)
Capital increase (net of fees paid) (6)
247.4
-
(Purchases) / Sales of treasury shares net
(0.1)
0.9
Change in other borrowings (7)
(233.3)
(545.1)
Change in rental debts
(34.7)
(42.8)
Payment of transaction costs (8)
(4.8)
(1.6)
Net cash generated from (used by) financing activities
(25.4)
(588.6)
Cash and cash equivalent at beginning of period
444.6
628.2
Net increase/(decrease) in cash and cash equivalents after effect
of foreign exchange differences
(15.8)
(287.2)
Changes in scope
-
-
Effect of foreign exchange differences
2.8
(4.5)
Cash and cash equivalents at end of period
431.6
336.4
Footnotes to IFRS Cash Flow Statement
(1) In 2021, the variation is mainly explained by the change in
the provision for reconditioning of vehicles in Buy-Back for €(5)m
as well as some lawsuits and restructuring provisions .In 2020, the
variation is mainly explained by the change in the insurance
provision for €(5)m and the provision for reconditioning of
vehicles in Buy-Back for €(11)m.
(2) With the application of IFRIC 19, the difference between the
book value of the debt converted into equity instruments and the
fair value of these instruments at the transaction date revealed a
non-monetary financial gain of €48 million, which has been
recognized on the income statement.
(3) In 2021, includes the recycling of capitalized refinancing
costs for an amount of €12 million, related to the debt
restructuring and converted into equity.
(4) Given the average holding period for the fleet, the Group
reports vehicles as current assets at the beginning of the
contract. Their variations from one period to another is therefore
similar to operating flows generated by the activity.
(5) In 2021, limited to IT developments for Group’s digital
transformation.
(6) In 2021, capital increase via a capital injection and the
issue of new ordinary shares, maintaining shareholders’
preferential subscription rights, for an amount of €250 million,
cash injection related to the exercise of the Guarantee Warrants,
the Participation Warrants and the Coordination Warrants,
distributed mainly to Bondholders for an amount of €6 million. The
amount of the capital increase is net of the fees paid for €9
million.
(7) In 2021, mainly related to the reimbursement of the
Revolving Credit Facility for €(124)m and other borrowings
dedicated to fleet financing for €(108) million. In 2020, mainly
related to drawing variation under Senior Notes (SARF) for €(387)
million, Revolving Credit Facility and Commercial Papers for €63
million and other borrowings dedicated to fleet financing for
€(221) million.
(8) In 2021, payment of Transaction Costs in the context of the
debt restructuring.
Appendix 6 – Corporate net debt and Fleet net debt
€million
Maturity
Dec. 31, 2020
Mar. 31, 2020
Mar. 31, 2021
High Yield Senior Notes
2024
600
600
0
High Yield Senior Notes
2026
450
450
0
State guaranteed Loans
281
0
280
Crédit Suisse Facility
50
0
0
New Term Loan (€500m) & RCF
2023
624
611
500
FCT Junior Notes, accrued interest not yet due, capitalized
financing costs and other
(204)
(302)
(195)
Gross Corporate debt
1 801
1 359
585
Short-term Investments and Cash in operating and holding entities
(375)
(291)
(386)
CORPORATE NET DEBT
1 426
1 068
199
€million
Maturity
Dec. 31, 2020
Mar. 31, 2020
Mar. 31, 2021
High Yield EC Finance Notes
2022
500
500
500
Senior asset revolving facility (€1.7bn SARF)
2022
445
747
414
FCT Junior Notes, accrued interest, financing capitalized costs and
other
243
309
228
UK, Australia and other fleet financing facilities
969
1 326
920
Gross financial fleet debt
2 157
2 882
2 061
Cash held in fleet financing entities and Short-term fleet
investments
(118)
(97)
(90)
Fleet net debt in Balance sheet
2 039
2 785
1 971
Fleet liabilities related to leases
75
115
66
TOTAL FLEET NET DEBT (incl. op leases)
2 114
2 899
2 037
---------------------------------------------------------------------------------------------------
1After IFRS 16 application, excluding non-fleet liabilities
related to leases 2 Proforma basis: at constant exchange rate and
perimeter 3Excluding liabilities related to leases
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