- Digital marketing driving e-commerce
performance and leisure revenue growth
- Successful integration of Goldcar
and Buchbinder acquisitions in less than nine months
- Q3 Revenue of €989 million up 25% at
constant exchange rates with 2.6% pro-forma1
growth
- Q3 Adjusted Corporate EBITDA of €241
million up 50% with an adjusted corporate EBITDA margin of 24.4% up
410 basis points delivering significant operating leverage
- Q3 Net profit of €148 million up 42%
versus €105 million in Q3 2017
- Corporate Net Leverage decreases to
2.4x at end of Q3 2018
- Europcar Mobility Group fully
confirms its 2018 financial guidance
Regulatory News:
Europcar Mobility Group (Euronext Paris: EUCAR) today announced
its results for the third quarter of 2018.
For Caroline Parot, Chief Executive Officer of Europcar Mobility
Group:
“Accelerating our transformation into a mobility service
company, we have delivered a strong set of results in Q3. These
results prove how agile we have become with a stronger than ever
capability to manage complex projects such as the integration of
Goldcar and Buchbinder, in a short time frame, without disrupting
our daily operations, even during peak season.
Another great source of satisfaction is our digitalization.
Digital Marketing has become a powerful business driver and
competitive asset for us. The way we leverage technologies to drive
e-commerce performance makes us a front runner in terms of ROI.
_______________1 YTD figure excluding impact of BU New Mobility2
Pro-forma revenue growth is defined as at constant exchange rates
and including the 2017 performance of Goldcar, Europcar Denmark and
Buchbinder
The roll-out of our customer centric and digitalisation plans at
the heart of the Group’s transformation, fostered the excellent
e-commerce Direct-To-Brand performance (leisure growth, invoiced
revenue) of Europcar (+9% ytd), Goldcar (+14% ytd) and Ubeeqo (+77%
ytd). Key initiatives such as the development of group
cross-brand synergies, global campaigns and leveraging technologies
created added value for customers and generate additional
revenue.
As a result, the Group grew at a robust pace in Q3, showing its
strong ability to manage prices as well as its fleet costs in a
competitive market environment. Europcar Mobility Group achieved a
record level of Adjusted Corporate EBITDA, both in Q3 and over the
first nine months of the year, as well as a significant margin
uplift, up 410 basis points in Q3.
Hence, we remain confident in our future and fully confirm our
2018 guidance”.
Third Quarter 2018
Highlights
All data in €m, except if mentioned Q3 2018
Q3 2017 Change
Change
atconstantcurrency
Number of rental days (million) 28.2 22.0
28.0%
Average Fleet (thousand) 381.4 300.6
26.9%
Financial Utilization rate 80.3% 79.6%
0.7pt
Total revenues 989 794 24.6%
24.9%
Rental revenues 934 750 24.5% 24.8%
Adjusted
Corporate EBITDA 241 161 50.0% 50.3%
Adjusted Corporate
EBITDA Margin 24.4% 20.3% 4.1pt
Adjusted Corporate EBITDA Excluding
New Mobility
246 165 49.6% 49.9%
Adjusted Corporate EBITDA Margin
excluding NM
25.1% 20.9% 4.2pt
Operating
Income 242 167
Net profit/loss 148 105 n.m n.m
Corporate Free Cash Flow 102 50
Corporate Net Debt at end
of the period 791 200
Proforma Corporate net debt / EBITDA
ratio 2,4x 0,9x
Third Quarter 2018 Highlights - per
Business Unit
Cars
On a reported basis, the BU Cars generated €667 million of
rental revenue up 7.7% compared the third quarter of 2017.
Our Cars Business Unit benefitted from good growth trends in
both corporate and leisure segments. Southern European countries
delivered solid growth in the third quarter in spite of some
deceleration versus the previous years, notably in Spain.
More importantly, the BU’s overall solid performance shows its
ability to manage its pricing in a competitive environment thanks
to its continued investment into demand forecasting and pricing
optimisation tools; as demonstrated by the Group’s management of
RPD pressure in Spain and Italy over the summer.
The UK continued its turnaround focusing on profitable
growth.
On a pro-forma basis, the Group delivered a good 2.1% growth in
rental revenue in the third quarter of 2018 driven by a 1.7%
increase in rental days and a 0.4% increase in RPD.
Vans & Trucks
On a reported basis, the BU Vans & Trucks generated €86
million of rental revenue up 24% compared to the third quarter of
2017.
The Group’s strategy to focus on corporate / SME customers
through longer rental duration, the deployment of supersites in
France, Germany, the UK and more recently in Spain is delivering
solid revenue growth. The integration of Buchbinder’s Vans &
Trucks business has pushed the Group to the market leading position
in Germany.
On a pro-forma basis, the Group delivered 4.5% rental revenue
growth in the third quarter of 2018 driven by a 6.5% increase in
rental days and a 1.9% decrease in RPD, mainly driven by longer
rental durations due to the Group’s increased focus on the
corporate / SME’s customers.
Low Cost
On a reported basis, the BU Low Cost generated €180 million of
rental revenue up 202% compared to the third quarter of 2017.
The Group’s Low Cost business unit is now operating with two
brands, Goldcar and InterRent.
The first nine months of the year have been dedicated to the
integration of Goldcar and the delivery of the expected cost
synergies, fully in line with the initial value creation plan.
The full integration of the two brands in Portugal and the UK
has been finalised before the summer season; the management team of
the business unit is currently completing this integration process
in Spain, France and Italy that will be finalised before the end of
fourth quarter of 2018, ensuring fleet cost optimisation in
2019.
As expected, both brands have delivered summer performances
fully in line with our 2018 plans. Goldcar has delivered positive
revenue growth, with InterRent starting to be repositioned as a
mid-tier brand. InterRent saw anticipated rental volume decline but
strongly benefitted from Goldcar’s additional services and sales
capabilities. The full mid-tier repositioning of InterRent will
take place over the course of 2019.
This repositioning will enable the new management team to fully
deploy its commercial strategy, thereby extracting the full value
from both brands.
In last summer’s challenging pricing environment in Spain and
Italy, owning the Low Cost market leader has enabled the Group to
protect its price positioning for the Europcar brand in those
southern European markets. This confirmed the strategic rationale
for the acquisition of Goldcar from an overall Group pricing
perspective. Hence the Group remains very positive about the long
term growth prospects of the Low Cost segment and the strong
success encountered over the summer in more recently opened
countries such as Greece or Turkey bodes well for the future.
On a pro-forma basis, the business Low Cost delivered 0.1%
revenue growth in the third quarter driven by a 1.5% increase in
rental days and 1.4% decline in RPD.
New Mobility
The New Mobility business unit showed strong momentum with 44%
revenue growth on a proforma basis. Both key businesses
continue to deliver strong 2-digit growth YoY observed in
most of its countries and cities.
Vehicle sharing business (Ubeeqo, GoCar brands) saw its revenue
grow by 52%. Key drivers of growth remain
improving utilisation rates and enhanced footprint achieved
through fleet expansion in existing cities. Scooty, the
scooter-sharing business in Belgium, acquired by the Group in Q2
2018, delivered an impressive 68% revenue growth in the third
quarter (vs. previous quarter) as it upgraded and more than doubled
its free-floating fleet. Overall, the Vehicle sharing arm is
well positioned and perceived by customers as an attractive
alternative to car ownership in cities.
Brunel’s (Ride Hailing) business has seen its revenue increase
by 35% and delivered good commercial traction with the win of
several strategic corporate customer accounts in London. These key
accounts, as well as Driver Rental business line continued to
scale-up throughout Q3 2018 and have a positive balancing
effect on daily peak times; the business has achieved an all-time
transaction high point in Q3.
The group continues to consolidate and integrate the New
Mobility business with the rest of the Europcar Mobility Group
focusing on synergies that range from reduction in fleet holding
costs, financing costs and improved in-fleeting capacity, and
cross-selling momentum.
Third Quarter 2018 - Operational
Highlights
70% of the Group’s rental revenue in the third quarter of 2018
were generated in the leisure segment, which acted as the main
engine of growth during the period.
Over the first nine months, the Group’s leisure business
generated 62% of the Group’s rental revenues, with the Group’s
corporate business being responsible for the remaining 38%.
The Group continued to focus on improving its customer
service through dedicated programmes. These efforts have
enabled the Group to continue to deliver significant improvements
in its NPS (net promoter scores)3 with an
increase of 1.5 points over the last twelve months. NPS
reached 56.1 points at the end of September 2018 compared to 54.6
at the end of September 2017.
In the third quarter of 2018, the Group has made significant
progress on two of its key operating metrics: fleet utilization
and fleet cost per unit. The Group delivered a solid
performance in terms of fleet financial utilization with a 70 basis
points increase on a reported basis in the third quarter of 2018
going from 79.6% to 80.3%.
The Group continued to reduce the fleet cost per unit per month
which was down €24 in the third quarter of 2018 at €218 versus €242
in the third quarter of 2017 thanks to a better damage recovery
ratio and reconditioning especially in the UK and Germany, coupled
with a positive impact from recent acquisitions in terms of fleet
mix, evolving towards lower category cars.
Third Quarter 2018 - Financial
Highlights
Revenue
In the third quarter of 2018, Europcar Mobility Group generated
revenues of €989 million up 25% at constant exchange rates compared
with the third quarter of 2017. On a pro-forma basis, i.e. at
constant exchange rates and including the 2017 performance of
Goldcar, Europcar Denmark and Buchbinder, the Group revenues grew
by 2.6%.
This significant increase in Group revenues was the result of
positive growth across all the Group’s key markets and in all of
its three major business units with Cars growing by 7.7%, Vans
& Trucks growing by 24% and Low Cost growing by 202%. On a
pro-forma basis, these three major business units grew their rental
revenues by respectively 2.1%, 4.5% and 0.1%.
The number of rental days reached a new record of 28.2 million
in the third quarter of 2018, up 28% versus the third quarter of
2017. On a pro-forma basis, growth in rental days was 2.0% for the
Group spread across all its key business units.
_______________3 NPS here only relates to the Europcar Brand
Adjusted Corporate EBITDA4
Third quarter 2018 Adjusted Corporate EBITDA increased by 50% at
constant exchange rates to €241 million compared to €161 million in
the third quarter of 2017. As expected, the Adjusted Corporate
EBITDA margin of the Group increased by 410 basis points to 24.4%
in the third quarter of 2018 mostly as a result of the positive
margin impact stemming from the recent acquisitions made by the
Group (Goldcar, Buchbinder and Europcar Denmark).
Excluding the impact of New Mobility, third quarter 2018
Adjusted Corporate EBITDA reached €246 million compared to €164
million in the third quarter of 2017 at constant exchange
rates.
Corporate Free Cash Flow
Third Quarter 2018 Corporate Free Cash Flow reached €102 million
compared to €50 million in the third quarter of 2017. The main
reasons for that significant increase were the higher Adjusted
Corporate EBITDA and a lower level of non-recurring expenses. This
doubling of the Group’s Corporate Free Cash Flow generation in the
third quarter of 2018 is particularly satisfactory as it was
achieved in a context of continued investments in the Group’s
digitisation and as a result a higher level of non-fleet related
capital expenditure mostly IT related.
Net financing costs
Net financing costs under IFRS amounted to a €42.9 million
net expense in the third quarter of 2018, up 35% compared to a net
expense of €31.8 million incurred in the third quarter of 2017. The
main reason for this is the full effect of the €600 million
corporate bond issued in October 2017 to finance the Goldcar and
Buchbinder acquisitions.
Net income
In the third quarter of 2018, the Group posted a net profit of
€148 million, up 42% compared to last year’s net profit of €105
million in the third quarter of 2017. This is mostly due to the
impact of the Group’s strong increase in adjusted Corporate EBITDA
over the period.
Net debt
Corporate net debt reached €791 million as of September 30, 2018
(vs. €827 million as of December 31, 2017).
The Group’s pro forma corporate net leverage decreased to reach
2.4x at the end of the third quarter of 2018 and will continue to
decrease during the fourth quarter of 2018.
The fleet net debt was €5,445 million as of September 30, 2018
vs €4,061 million as of December 31, 2017. This increase reflects
the higher number of vehicles in the fleet in order to sustain the
growth of the Group’s operations.
_______________4 Adjusted Corporate EBITDA is defined as current
operating income before depreciation and amortization not related
to the fleet, and after deduction of the interest expense on
certain liabilities related to rental fleet financing. This
indicator includes in particular all the costs associated with the
fleet. See “Reconciliation with IFRS” attached.
9 Months or YTD
Highlights
All data in €m, except if mentioned 9M 2018
9M 2017 Change
Change
atconstantcurrency
Number of rental days (million) 67.7 52.0
30.2%
Average Fleet (thousand) 320.4 245.2
30.7%
Financial Utilization rate 77.4% 77.7%
-0.3pt
Total revenues 2,286 1,822 25.5%
26.3%
Rental revenues 2,149 1,706 25.9% 26.8%
Adjusted
Corporate EBITDA 288 217 32.5% 33.0%
Adjusted Corporate
EBITDA Margin 12.6% 11.9% 0.7pt
Adjusted Corporate EBITDA Excluding
New Mobility
300 225 33.5% 33.7%
Adjusted Corporate EBITDA Margin
excluding NM
13.3% 12.4% 0.9pt
Operating Income 346 198
Net
profit/loss 168 78 n.m n.m
Corporate Free Cash Flow 167
140
Corporate Net Debt at end of the period 791 200
Proforma Corporate net debt / EBITDA ratio 2,4x 0,9x
9 Months or YTD 2018 Financial
Highlights
Revenue
In the first nine months of 2018, the Group generated revenues
of €2,286 million up 26% at constant exchange rates compared with
the first nine months of 2017. On a pro-forma basis, ie at constant
exchange rates and including the 2017 performance of Goldcar,
Europcar Denmark and Buchbinder, the Group revenues grew by 4.0%.
This pro-forma growth rate was driven by good volume growth and
positive e-commerce dynamic.
Adjusted Corporate EBITDA5
YTD 2018 Adjusted Corporate EBITDA increased by 33% reaching
€288 million compared to €217 million in the first nine months of
2017. The Adjusted Corporate EBITDA margin of the Group increased
by 60 basis points to 12.6% in the first nine months of 2018.
Excluding the impact of New Mobility, YTD 2018 Adjusted
Corporate EBITDA reached €300 million compared to €225 million in
the first nine months of 2017 at constant exchange rates.
_______________5 Adjusted Corporate EBITDA is defined as current
operating income before depreciation and amortization not related
to the fleet, and after deduction of the interest expense on
certain liabilities related to rental fleet financing. This
indicator includes in particular all the costs associated with the
fleet. See “Reconciliation with IFRS” attached.
Corporate Free Cash Flow
YTD 2018 Corporate Free Cash Flow reached €167 million up 19%
compared to €140 million in the first nine months of 2017. The main
reasons for that significant increase were the higher Adjusted
Corporate EBITDA and a lower level of non-recurring expenses.
Net income
During the first nine months of 2018, the Group posted a net
profit of €168 million, more than doubling compared to last year’s
net profit of €78 million in the first nine months of 2017. This is
mostly due to the impact of the Group’s strong increase in adjusted
Corporate EBITDA over the period but also a €68 million gain
following the sale of the Group’s 25% stake in Car2go.
2018 guidance
Europcar Mobility Group fully confirms its four financial
targets for 2018 compared to 2017:
- Accelerating pro-forma6 revenue growth i.e. above
3%
- Adjusted corporate EBITDA (excluding New Mobility) above 350
million euros
- Corporate operating free cash flow conversion rate above
50%
- Dividend pay-out ratio above 30%
_______________6 Q3 2018 Revenue was calculated on a proforma
basis as the full merger of InterRent and Goldcar does not enable
the Group to track its organic revenue growth performance anymore.
As a consequence, the Group’s initial organic revenue growth target
for the full year of above 3% has been replaced by a proforma
revenue growth target of above 3%.
Conference Call with Analysts and
Investors
Caroline Parot, Group Chief Executive Officer and Luc Peligry,
Group Chief Financial Officer, will host a conference call in
English today at 10.00 a.m. Paris time (CET).
You can follow this conference call live via webcast.
A replay will also be available for a period of one year. All
documents relating to this publication will be available online on
Europcar Mobility Group’s investor relations website.
Investor Calendar
Q4 2018 Results 21 February 2019 AGM 26 April
2019 Q1 2019 Results 22 May 2019 Q2 2019 Results 25 July 2019 Q3
2019 Results 7 November 2019
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 alternative attractive
solutions to vehicle ownership, with a wide range of
mobility-related services: vehicle-rental, chauffeur services,
car-sharing, scooter-sharing and peer-to-peer car-rental.
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 multi brands meeting
every customer specific needs; its 4 major brands being: Europcar®
- the European leader in vehicle rental services, Goldcar® - the
most important low-cost car-rental company in Europe, InterRent® –
‘mid-tier’ brand focused on leisure and Ubeeqo® – one of the
European leaders in car-sharing (BtoB, BtoC).
Europcar Mobility Group delivers its mobility solutions
worldwide solutions through an extensive network in 133 countries
(including 16 wholly owned subsidiaries in Europe, 2 in Australia
and New Zealand, 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 Groupe 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 Groupe’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 Groupe 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 Annual Registration Document registered
by the Autorité des marchés financiers on April 20, 2018 under
the number R. 18-020 and also available on the
Group's website: www.europcar-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.
Further details on our website:
www.europcar-mobility-group.com
Appendix 1 – Management Profit and Loss
Q3 2018 Q3 2017 All data in €m
9M 2018 9M 2017 989.0
794.0 Total revenue 2,285.7
1,821.8 (207.9) (170.7) Fleet
holding costs, excluding estimated interest included in operating
leases (542.1) (413.3) (307.1)
(266.7) Fleet operating, rental and revenue related
costs (763.2) (637.9) (129.5) (106.1)
Personnel costs (386.5) (297.3) (74.0) (59.8) Network and head
office overhead (225.3) (180.4) 5.5 1.2 Other income
and expense 9.8 5.2
(198.0) (164.6)
Personnel costs, network and head office overhead, IT and
other (601.9) (472.5) (18.3) (17.2) Net
fleet financing expense (49.3) (45.4) (16.2) (13.8)
Estimated interest included in operating leases (41.3)
(35.3)
(34.5) (31.0) Fleet financing
expenses, including estimated interest included in operating
leases (90.6) (80.6) 241.5 161.0
Adjusted Corporate EBITDA 287.8 217.3
24.4% 20.3% Margin 12.6% 11.9%
(11.3) (8.0) Depreciation – excluding vehicle fleet (31.7) (22.2)
(7.0) (3.7) Other operating income and expenses 40.9 (42.2) (24.6)
(14.6) Other financing income and expense not related to the fleet
(71.1) (44.5)
198.7 134.7 Profit/loss before
tax 226.0 108.4 (50.5) (27.6) Income tax (56.4)
(22.6) (0.0) (2.1) Share of profit/(loss) of associates (1.2) (7.9)
148.2 105.0 Net profit/(loss) 168.3
78.0
Appendix 2 – IFRS Income Statement
In € thousands
Nine months 2018
Nine months 2017
Revenue
2,285,677 1,821,758 Fleet holding costs
(583,377) (448,606) Fleet operating, rental and revenue related
costs (763,240) (637,946) Personnel costs (386,447) (297,280)
Network and head office overhead costs (225,278) (180,423)
Depreciation, amortization and impairment expense (31,677) (22,195)
Other income 9,782 5,181
Current operating
income 305,440 240,489 Other
non-recurring income and expense 40,919 (42,214)
Operating income 346,359 198,275
Gross financing costs (96,749) (72,504) Other financial
expenses (24,655) (18,205) Other financial income 997 878
Net
financing costs (120,407) (89,831)
Profit/(loss) before tax 225,952
108,444 Income tax benefit/(expense) (56,433)
(22,570) Share of profit of Associates (1,239)
(7,865)
Net profit/(loss) for the period
168,280 78,009 Attributable to:
Owners of ECG 167,872 78,139 Non-controlling interests 408 (130)
Basic Earnings per share attributable to owners of ECG (in
€) 1.042 0.538 Diluted Earnings per share attributable to owners of
ECG (in €) 1.039 0.533
Appendix 3 – Reconciliation
Q3 2018 Q3 2017 All data in €m
9M 2018 9M 2017 450.2
330.6 Adjusted Consolidated EBITDA
826.7 629.4 (82.4) (62.3) Fleet depreciation
IFRS (234.0) (154.8) (91.7) (76.4) Fleet depreciation included in
operating lease rents (214.2) (176.6)
(174.2) (138.7)
Total Fleet depreciation (448.2) (331.4)
(16.2) (13.8) Interest expense related to fleet operating leases
(estimated) (41.3) (35.3) (18.3) (17.2) Net fleet financing
expenses (49.3) (45.4)
(34.5) (31.0) Total Fleet
financing (90.6) (80.6) 241.5 161.0
Adjusted Corporate EBITDA 287.8 217.3 (11.3)
(8.0) Amortization, depreciation and impairment expense (31.7)
(22.2) 18.3 17.2 Reversal of Net fleet financing expenses 49.3 45.4
16.2 13.8 Reversal of Interest expense related to fleet operating
leases (estimated) 41.3 35.3
264.7 184.0 Adjusted
recurring operating income 346.8 275.8 (16.2)
(13.8) Interest expense related to fleet operating leases
(estimated) (41.3) (35.3)
248.5 170.1 Recurring
operating income 305.4 240.5
Appendix 4 – IFRS Balance Sheet
In € thousands
At At Sep. 30,
Dec. 31, 2018 2017 Assets
Goodwill 1,123,932 1,124,816 Intangible
assets 855,516 837,966 Property, plant and equipment 112,887
114,855 Equity-accounted investments 1,350 4,036 Other non-current
financial assets 71,446 58,602 Financial instruments non-current
4,486 226 Deferred tax assets 62,094 59,465
Total
non-current assets 2,231,711 2,199,966
Inventory 31,800 24,330 Rental fleet recorded on the balance sheet
2,915,438 2,339,313 Rental fleet and related receivables 811,499
700,117 Trade and other receivables 523,423 456,688 Current
financial assets 22,241 32,762 Current tax assets 53,679 42,760
Restricted cash 96,134 104,818 Cash and cash equivalents 222,233
240,792
Total current assets 4,676,447
3,941,580 Total
assets 6,908,158 6,141,546
Equity Share capital 161,031
161,031 Share premium 692,255 745,748 Reserves (150,821) (107,454)
Retained earnings (losses) 232,766 37,209
Total equity
attributable to the owners of ECG 935,231 836,534
Non-controlling interests 1,144 763
Total
equity 936,375 837,297
Liabilities Financial
liabilities 1,731,821 1,570,141 Non-current financial instruments
46,215 37,122 Employee benefit liabilities 134,107 133,951
Non-current provisions 5,519 8,680 Deferred tax liabilities 139,282
137,146 Other non-current liabilities 235 276
Total
non-current liabilities 2,057,179 1,887,316
Current portion of financial liabilities 2,380,966 1,950,262
Employee benefits 3,149 3,149 Current provisions 232,661 222,855
Current tax liabilities 73,369 31,566 Rental fleet related payables
595,917 604,196 Trade payables and other liabilities 628,542
604,905
Total current liabilities 3,914,604
3,416,933 Total liabilities
5,971,783 5,304,249
Total equity and liabilities
6,908,158 6,141,546
Appendix 5 – IFRS Cash Flow Statement
In € thousands
Nine months2018
Nine months2017
Profit/(loss)
before tax 225,952
108,444 Reversal of the following items Depreciation
and impairment expenses on property, plant and equipment 17,642
12,158 Amortization and impairment expenses on intangible assets
13,839 9,750 Changes in provisions and employee benefits (1) 3,520
22,850 Recognition of share-based payments 1,126 810 Profit/(loss)
on disposal of assets (2) (68,546) 57 Other non-cash items 1,966
(427) Total net interest costs 102,166 76,763 Amortization of
transaction costs 9,875 6,365
Net financing costs
112,041 83,128
Net cash from operations before changes in working
capital 307,540 236,770
Changes to the rental fleet recorded on the balance sheet (3)
(583,399) (451,495) Changes in fleet working capital (139,391)
(78,771) Changes in non-fleet working capital (19,968) 192
Cash generated from
operations (435,218)
(293,304) Income taxes received/paid (25,782)
(23,406) Net interest paid (82,071) (70,785)
Net cash generated from (used by)
operating activities (543,071)
(387,495) Acquisition of intangible assets and
property, plant and equipment (4) (52,115) (33,535) Proceeds from
disposal of intangible assets and property, plant and equipment
2,972 933 Other investments and loans (5) 59,279 (227,012)
Net cash used by
investing activities 10,136
(259,614) Capital increase (net of related expenses)
- 192,440 Special distribution (24,229) (59,366) (Purchases) /
Sales of treasury shares net (28,554) (520) Derivatives instruments
(6) (6,082) - Insurance of bonds (7) 148,500 - Change in other
borrowings 442,745 488,867 Payment of transaction costs (8) (8,860)
(7,714)
Net
cash generated from (used by) financing activities
523,520 613,707 Cash
and cash equivalent at beginning of period 313,253
248,507 Net increase/(decrease) in cash and cash equivalents
after effect of foreign exchange differences (9,415) (33,402)
Changes in scope - (2,982) Effect of foreign exchange differences
(1,452) (1,445)
Cash and cash equivalents at end of period
302,386 210,678
(1) Of which in 2018, the reversal of
provision for risk in France. Of which in 2017, the reversal of
provision for disputes with French Competition Authority for €45
million. (2) Mainly related to the profit on the sale of Car2Go.
(3) Given the average holding period for the fleet, the Group
reports vehicles as current assets at the beginning of the
contract. Their change from period to period is therefore similar
to operating flows generated by the activity. (4) Mainly related to
IT cost capitalized (€23.8m), other & technical equipment for
(€19.7m) and other IT projects for (€8.6m). (5) In 2018, mainly
related to the sale of Car2Go. (6) In 2018, payment of a premium
following the restructuring of existing caps and the implementation
of additional caps. (7) In 2018, the change is mainly due to the
launch of a Senior Secured Notes at a rate of 2.375% of an amount
of 150 million euros maturing in 2022. (8) In 2018, payment of
transaction costs including €(4.2)m related to SARF, €(0.2)m of
initial costs related to the revolving credit facility, €(1.3)m
related to the bridging loan, €(0.6)m related to the new €150m bond
issue and €(2.6)m related to other loans.
Appendix 6 – Debt
€million Pricing Maturity
Sept. 30, 2018 Dec. 31, 2017 High Yield Senior
Notes (a) 4.125% 2024 600 600 High Yield Senior Notes (a) 5.75%
2022 600 600 Senior Revolving Facility (€500m) E+250bps (b) 2022
179 160 FCT Junior Notes, accrued interest not yet due, capitalized
financing costs and other (303) (270)
Gross Corporate debt
1,076 1,090 Short-term Investments and Cash in
operating and holding entities (286) (263)
CORPORATE NET
DEBT (A) 791 827 €million
Pricing Maturity Sept. 30, 2018 Dec. 31,
2017 High Yield EC Finance Notes (a) 2.375% 2022 500 350 Senior
asset revolving facility (€1.7bn SARF) (c) E+130bps 2022 767 739
FCT Junior Notes, accrued interest, financing capitalized costs and
other 306 260 UK, Australia and other fleet financing facilities
Various (d) 1,462 1,081
Gross financial fleet debt
3,035 2,430 Cash held in fleet financing entities and
Short-term fleet investments (96) (143)
Fleet net debt in
Balance sheet 2,939 2,287 Debt
equivalent of fleet operating leases - OFF Balance Sheet (e)
2,506 1,774 TOTAL FLEET NET DEBT (incl. op
leases) (B) 5,445 4,061 TOTAL
NET DEBT (A)+(B) 6,236 4,888
Note: This press release contains unaudited
consolidated financial figures established under IFRS by Europcar
Mobility Group’s Management Board and reviewed by the Supervisory
Board.
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Europcar Mobility GroupPress RelationsValérie
Sauteret / Marie-Anne Bénardais+33 1 80 20 92
92europcarpressoffice@europcar.comorInvestor
RelationsOlivier Gernandt+33 1 80 20 91
81olivier.gernandt@europcar.comorPublicis ConsultantsLouis
Branger / Vilizara LazarovaTel : +33 144 82 45
25louis.branger@publicisconsultants.com