Touax: HALF-YEAR RESULTS 2024 Growth in Turnover and EBITDA

PRESS RELEASE        Paris, 18 September 2024 – 5:45 pm

YOUR OPERATIONAL LEASING SOLUTION FOR SUSTAINABLE TRANSPORTATION

HALF-YEAR RESULTS 2024

Growth in Turnover¹ and EBITDA

Turnover of €80.4m, up slightly (+€1.4 m) Increase of the EBITDA to €30m (+€1.1m) Group share of net profit: €3.8m

« TOUAX confirms the resilience of its business model. Selective investments in quality logistics assets on long-term leases and the mix of different activities in which we operate enable a steady growth and recurring revenues. The dynamic syndication activity during the first semester demonstrates investors' confidence in TOUAX's business model and its ability to offer stable returns over the long term » remarked Fabrice and Raphaël Walewski, TOUAX SCA’s managing partners.

Consolidated EBITDA² amounts to €30.0 million, a +€1.1 million increase, supported by the good performance of the management activity (+€2.7 million), with restated income from activities amounting to € 80.4 million, up +€1.4 million.

Financial expenses increase by -€1.1 million, related to the interest rates rising.

Non-recurring items had a positive impact on the first semester, with the payment of an additional price of €1.5 million for the sale of the Modular Buildings activity in 2017, and the favourable outcome of a former dispute in the United States for €0.4 million. As a reminder, during the first semester 2023, the net income included €2.6 million of non-recurring items corresponding to the combined effect of the buyout of minority interests in the Modular Buildings activity and the US dispute.

The Group share of net profit amounts to €3.8 million, versus €5.1 million in 2023.

In June 2024, TOUAX implemented for the Containers division a new Capex line of US$50 million for a period of two years, with an option to increase by a further US$15 million.

KEY ACCOUNTING ITEMS

Key figures	June 2024	June 2023		Dec. 2023
(in € million)
Restated Revenue (*) from activities	80.4	79.1		157.1
Of which Freight Railcars	29.1	27.9		58.3
Of which River barges	7.9	7.5		15.0
Of which Containers	34.1	35.1		66.9
Of which Miscellaneous and eliminations	9.3	8.6		16.9
EBITDA	30.0	28.9		55.3
Current operating income	14.2	14.7		25.9
Other financial income and expenses	0.4	2.6		2.4
Operating income	14.6	17.3		28.3
Financial result	-10.8	-9.8		-21.0
Corporate tax	-0.6	-1.4		-1.5
Profit from discontinued operations	1.5	0.0		0.0
Consolidated net profit (loss) (Group's share)	3.8	5.1		3.6
Earnings per share (€)	0.55	0.72		0.52
Total non-current assets	415.1	381.2		406.3
Total assets	573.7	564.3		563.4
Total shareholders' equity	153.0	153.5		147.6
Net financial debt (a)	297.1	267.3		285.7
Operating cash flow (b)	5.0	17.4		21.1
Loan to Value ratio (c)	60.2%	57.4%		59.1%
(a) including €248.1m non-recourse debt and €4.3m derivative financial instruments, at 30 June 2024
(b) including €23.5m net equipment acquisitions (vs €20.7m end of June 2023)
(c) LTV: Consolidated gross financial debt / Total assets less goodwill and intangible fixed assets

(*) The key indicators in the Group’s activity report are presented differently from the IFRS income statement, to enable an understanding of the activities’ performance. As such, no distinction is made in third-party management, which is presented solely in agent form.
This presentation has no impact on EBITDA, operating income, or net income. The accounting presentation of revenue from activities is presented in the appendix to the press release.

A SLIGHT INCREASE IN REVENUE

Restated revenue from activities totals €80.4 million, up +€1.4 million (+1.7%) compared with H1 2023.

The owned activity, which came to €72.6 million at the end of June 2024, is slightly down by -€1.3 million.
The leasing revenues continue to grow over the semester (+€2.8 million; +8%) confirming their recurring contribution to Group revenues. The average utilisation rates of Freight Railcars (86.4%), River Barges (96.3%) and Containers (96.9%) were at a high level.
Ancillary services decline by -€2.3 million for the Freight Railcars division (-€1.2 million: lower volume on maintenance contracts) and the River Barges division (-€1.2 million: lower chartering activity), with a limited impact on the profitability. Sales of owned equipment also decline by -€1.8 million (-6.1%), with a drop in sales of owned containers (-€2.8 million) offset by sales within Freight Railcars and Modular Buildings activities.

The management activity amounts to €7.9 million with an increase of +€2.7 million (+52.5%). With a sustained pace of transactions, syndication fees increase significantly in the Containers, Freight Railcars and River Barges activities, by a total of +€4.6 million. This change is partly offset by the -€1.9 million fall in sales of second-hand containers owned by investors.

ANALYSIS OF CONTRIBUTION BY DIVISION  

The restated revenue from the Freight Railcars division reaches €29.1 million during the first semester, an increase of +€1.2 million (+4.4%).

Total of owned activity increases by +€0.7 million to €27.5 million over the semester. This increase is supported on the one hand by the rise in leasing activity (+€1.6 million), that offsets the decrease of ancillary services (-€1.2 million), and on the other hand by the rise of sales of owned equipment (+€0.3 million). However, the average utilisation rate fell by -2.1 points to 86.4% over the first semester 2024 compared with the same period in 2023, while the average daily leasing rate rose slightly. The European rail transport market declined in the first half of 2024, mainly the intermodal traffic, impacted by the Ukraine war, energy cost, inflation and the loss of competitiveness of European industries. This is partly offset by the strong growth of the Indian rail market, where Touax Rail has been active since 2011.

Thanks to the syndications operated during the semester, management activities increase by +€0.5million to €1.6 million in June 2024.

The restated revenue from the River Barges division is up +€0.4 million to €7.9 million. The lower chartering activity on the Rhine basin is offset by the management activity.

The restated revenue from the Containers division comes to €34.1 million at the end of June 2024, a decrease of -€1.0 million (-2.8%).

The owned activity is down by -€1.5 million, with revenue falling from €31.0 million in June 2023 to €29.5 million in June 2024. While the leasing activity rises by €1.3 million, benefiting from new investments and the increase of the average utilisation rates (from 95.1% in H1 2023 to 96.9% in H1 2024), sales of owned equipment fall by -€2.8 million in the first half (mainly due to the container trading business), from €21.2 million to €18.3 million.

The management activity is up +€0.5 million to €4.5 million in 2024 with a mix of syndication fees increasing and commissions on sales of investor equipment decreasing (lower availability for sale due to higher average utilisation rates, and unfavourable comparison with a significant transaction accounted in June 2023).

Revenue from the Modular Buildings division presented under "Miscellaneous” kept growing in 2024, rising by +€0.7 million to €9.3 million.

A STABLE OPERATING PROFITABILITY

EBITDA comes to €30 million, an increase of +€1.1 million (+3.9%).

EBITDA in the Freight Railcars division rises by +€2.1 million (+14%) to €17 million, supported by higher leasing revenue, sale of owned equipment and syndication fees.

The River Barges division accounts an EBITDA of €3.9 million over the semester, giving an increase of +€1.4 million (+58%) thanks to the management activity.

EBITDA in the Containers division falls by -€1.7 million to €7.1 million (-20%). Cost of sales falls due to lower trading volumes and lower prices for new containers, but operating expenses (including allowances for doubtful customers and provisions for inventories) rise as a result of an ongoing customer procedure.

EBITDA for the Modular Buildings division falls slightly by -€0.8 million, reflecting a mix of local and export business, with lower margins.

The Group’s depreciation and amortization increase by +€1.7 million (of which €1.4 million from the Freight Railcars division) to €15.9 million in June 2024, due to new investments.

Current operating income reaches €14.2 million, down by -€0.6 million compared with end-June 2023.

Financial income comes to -€10.8 million, compared with -€9.8 million during the first semester 2023. The increase in net interest expense is mainly explained by a price effect due to interest rates rising. As the net debt slightly increases, the volume effect is limited on the financial income.

Corporate income tax amounted to -€0.6million, down by €0.8 million compared with end-June 2023.

While a net exceptional income of €2.6 million was accounted in 2023 (accounting income of €3.5 million relating to the purchase in January 2023 of minority interests in the Modular Buildings business in Africa; $1.0 million judgement in a legal case in the United States related to an old dispute involving the former Modular Buildings subsidiary), TOUAX reported in June 2024 a non-recurring income of €0.4 million related to the favourable outcome of the same US dispute. Moreover, as the sale of the former Modular Buildings activity in 2017 was finalised with the payment of an earn-out of €1.5 million in June 2024, a profit from discontinued operations was accounted.

Net income Group share amounts to €3.8 million, a -€1.2 million decrease compared with end-June 2023.

A BALANCED FINANCIAL STRUCTURE

The strength of the TOUAX’s balance sheet is reflected in the Loan to Value ratio of 60.2% as of June 2024, compared with 59.1% in December 2023.

Shareholders' equity amounts to €153.0 million, compared with €147.6 million euros in December 2023. This increase comes from the allocation of the semester profit of €3.8 million and positive translation adjustments (+€2.8 million); partly offset by distributions to shareholders and general partners (-€1.5 million).

The level of cash on the balance sheet at 30 June 2024 remains stable, at €38.6 million.

FAVOURABLE OUTLOOK AT THE HEART OF SUSTAINABLE TRANSPORT INFRASTRUCTURE

TOUAX continues to adopt a cautious short-term policy in the current economic challenges: uneven growth by geographical area and major global geopolitical risks.

The volume of international trade should remain at a satisfactory level in 2024. Our average utilisation rates during the first half of the year (86.4% for Freight Railcars, 96.3% for River Barges and 96.9% for Containers) demonstrate the resilience of the economies and markets where TOUAX operates.

The asset management business on behalf of third-party investors should continue to grow, given investor’s interest in leasing investment strategies for tangible assets linked to transport infrastructure.

With its expertise in the intermodal, rail and river transport sectors, TOUAX is at the heart of sustainable transport infrastructure. The Group continues to increase its commitment to Corporate and Social Responsibility, for a low-carbon economy.

UPCOMING EVENTS

• September 19, 2024:         Video conference call to present the semi-annual results in English
• November 14, 2024:        Q3 2024 revenue from activities

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 €1.2 billion of 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        SEITOSEI ● ACTIFIN
Fabrice & Raphaël WALEWSKI        Ghislaine Gasparetto
touax@touax.com        ghislaine.gasparetto@seitosei-actifin.com
www.touax.com        Tel : +33 1 56 88 11 22 +33 1 46 96 18 00        

        

APPENDICES

1 – Analysis of revenue from activities

Restated Revenue from activities	Q1 2024	Q2 2024	H1 2024	Q1 2023	Q2 2023	H1 2023
(in € thousand)
Leasing revenue on owned equipment	19,381	18,108	37,489	17,139	17,510	34,649
Ancillary services	3,021	3,939	6,960	5,030	4,271	9,301
Total leasing activity	22,402	22,047	44,449	22,169	21,781	43,950
Sales of owned equipment	12,213	15,898	28,111	13,053	16,895	29,948
Total sales of equipment	12,213	15,898	28,111	13,053	16,895	29,948
Total of owned activity	34,615	37,945	72,560	35,223	38,675	73,898
Syndication fees	424	4,707	5,131	0	544	544
Management fees	1,015	1,055	2,070	1,021	1,018	2,039
Sales fees	326	334	660	861	1,710	2,571
Total of management activity	1,765	6,096	7,861	1,882	3,272	5,154
Other capital gains on disposals	0	5	5	1	1	2
Total Others	0	5	5	1	1	2
Total Restated Revenue from activities	36,380	44,046	80,426	37,105	41,949	79,054

2 - Table showing the transition from summary accounting presentation to restated presentation

Revenue from activities	H1 2024	Retreatment	Restated	H1 2023	Retreatment	Restated
(in € thousand)			H1 2024			H1 2024
Leasing revenue on owned equipment	37,489		37,489	34,649		34,649
Ancillary services	8,166	-1,206	6,960	11,637	-2,336	9,301
Total leasing activity	45,655	-1,206	44,449	46,286	-2,336	43,950
Sales of owned equipment	28,111		28,111	29,948		29,948
Total sales of equipment	28,111		28,111	29,948		29,948
Total of owned activity	73,766	-1,206	72,560	76,234	-2,336	73,898
Leasing revenue on managed equipment	16,904	-16,904	-	18,902	-18,902	-
Syndication fees	5,131		5,131	544		544
Management fees	823	1,247	2,070	754	1,285	2,039
Sales fees	660		660	2,571		2,571
Total of management activity	23,518	-15,657	7,861	22,771	-17,617	5,154
Other capital gains on disposals	5		5	2		2
Total Others	5		5	2		2
Total Revenue from activities	97,289	-16,863	80,426	99,007	-19,953	79,054

3 - Breakdown of restated revenue from activities by division

Restated Revenue from activities	Q1 2024	Q2 2024	H1 2024	Q1 2023	Q2 2023	H1 2023	Variation
(in € thousand)
Leasing revenue on owned equipment	12,234	12,125	24,359	11,124	11,615	22,739	1,620
Ancillary services	1,137	1,555	2,692	1,938	1,937	3,875	-1,183
Total leasing activity	13,371	13,680	27,051	13,062	13,552	26,614	437
Sales of owned equipment	136	332	468	76	132	208	260
Total sales of equipment	136	332	468	76	132	208	260
Total of owned activity	13,507	14,012	27,519	13,138	13,684	26,822	697
Syndication fees	188	320	508	0	0	0	508
Management fees	558	562	1,120	538	553	1,091	29
Total of management activity	746	882	1,628	538	553	1,091	537
Total Freight railcars	14,253	14,894	29,147	13,676	14,237	27,913	1,234
Leasing revenue on owned equipment	1,749	1,908	3,657	1,878	1,886	3,764	-107
Ancillary services	1,196	1,311	2,507	2,072	1,629	3,701	-1,194
Total leasing activity	2,945	3,219	6,164	3,950	3,515	7,465	-1,301
Sales of owned equipment	1	0	1	0	5	5	-4
Total sales of equipment	1	0	1	0	5	5	-4
Total of owned activity	2,946	3,219	6,165	3,950	3,520	7,470	-1,305
Syndication fees	0	1,643	1,643	0	0	0	1,643
Management fees	32	31	63	11	14	25	38
Total of management activity	32	1,674	1,706	11	14	25	1,681
Total River Barges	2,978	4,893	7,871	3,961	3,534	7,495	376
Leasing revenue on owned equipment	5,393	4,072	9,465	4,133	4,004	8,137	1,328
Ancillary services	688	1,073	1,761	1,020	705	1,725	36
Total leasing activity	6,081	5,145	11,226	5,153	4,709	9,862	1,364
Sales of owned equipment	8,955	9,365	18,320	10,211	10,949	21,160	-2,840
Total sales of equipment	8,955	9,365	18,320	10,211	10,949	21,160	-2,840
Total of owned activity	15,036	14,510	29,546	15,364	15,658	31,022	-1,476
Syndication fees	236	2,744	2,980	0	544	544	2,436
Management fees	425	462	887	472	451	923	-36
Sales fees	326	334	660	861	1,710	2,571	-1,911
Total of management activity	987	3,540	4,527	1,333	2,705	4,038	489
Total Containers	16,023	18,050	34,073	16,697	18,363	35,060	-987
Leasing revenue on owned equipment	5	3	8	4	5	9	-1
Total leasing activity	5	3	8	4	5	9	-1
Sales of owned equipment	3,121	6,201	9,322	2,766	5,809	8,575	747
Total sales of equipment	3,121	6,201	9,322	2,766	5,809	8,575	747
Total of owned activity	3,126	6,204	9,330	2,770	5,814	8,584	746
Other capital gains on disposals	0	5	5	1	1	2	3
Total Others	0	5	5	1	1	2	3
Total Miscellaneous and eliminations	3,126	6,209	9,335	2,771	5,815	8,586	749
Total Restated Revenue from activities	36,380	44,046	80,426	37,105	41,949	79,054	1,372

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1   Corresponds to the restated revenue from activities.
2 EBITDA corresponds to the recurring operating income excluding depreciation, amortisation and impairment.

Attachment

• ENG TOUAX Press release - H1 2024