PRESS RELEASE Paris, November 14, 2023 - 5.45 p.m.
YOUR OPERATIONAL LEASING SOLUTION FOR SUSTAINABLE TRANSPORTATION
Steady activity since the beginning of the year
* Revenue of EUR116.5 million in the first nine months of the year
* 5% increase of leasing revenue
* Decrease of sales activity (-3.4%) following the price normalisation in
the Containers business
The Group's sales once again resist in a more uncertain global economic
environment thanks to its business model based on long-term contracts and
diversification.
At the end of the third quarter, total restated revenue from activities amounted
to EUR116.5 million (EUR117.9 million at constant scope and currency(1)), compared
with EUR120.2 million in the same period in 2022, a -EUR3.7 million decrease due to
the price normalisation in the containers market.
+------------------------------------------------------------------------------------
|Restated Revenue
|from activities* Q1 Q2 Q3 Q1 Q2 Q3
| 2023 2023 2023 9M 2023 2022 2022 2022 9M 2022 Variation
|(in EUR thousand)
+------------------------------------------------------------------------------------
Leasing revenue
on owned
equipment 17,139 17,510 17,412 52,061 15,509 16,909 17,178 49,596 2,465
------------------
Ancillary
services 5,030 4,271 5,299 14,600 5,732 4,884 7,390 18,006 -3,406
------------------
Total
leasing activity 22,169 21,781 22,711 66,661 21,241 21,793 24,568 67,602 -941
------------------
Sales of owned
equipment 13,053 16,895 13,024 42,972 14,862 14,249 15,392 44,503 -1,531
Total sales of
equipment 13,053 16,895 13,024 42,972 14,862 14,249 15,392 44,503 -1,531
-------------------------------------------------------------------------------------
Total of owned
activity 35,222 38,676 35,735 109,633 36,103 36,042 39,960 112,105 -2,472
-------------------------------------------------------------------------------------
Syndication fees 0 544 -2 542 0 2,522 65 2,587 -2,045
Management fees 1,021 1,018 1,024 3,063 978 986 1,083 3,047 16
Sales fees 861 1,710 674 3,245 336 1,349 801 2,486 759
-------------------------------------------------------------------------------------
Total of
management
activity 1,882 3,272 1,696 6,850 1,314 4,857 1,949 8,120 -1,270
-------------------------------------------------------------------------------------
Other capital
gains on
disposals 1 1 -1 1 0 0 6 6 -5
-------------------------------------------------------------------------------------
Total Others 1 1 -1 1 0 0 6 6 -5
-------------------------------------------------------------------------------------
Total Restated
Revenue from
activities 37,105 41,949 37,430 116,484 37,417 40,899 41,915 120,231 -3,747
-------------------------------------------------------------------------------------
(*) 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 therefore allows a direct reading of syndication fees, sales
commissions, and management fees.
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.
Owned activities amounted to EUR109.6 million in the first nine months of the
year, including:
* EUR52.1 million for Leasing revenue on owned equipment (+EUR2.5 million);
* EUR14.6 million for Ancillary services, down by -EUR3.4 million year-on-year due
to normalisation on the container market in particular on pick-up charges;
* EUR43.0 million for Sales of owned equipment, a decrease of -EUR1.5 million
year-on-year impacted by container price normalisation but partly
compensated by Freight Railcars' and Modular Building's performance.
As a reminder, the container business witnessed an exceptional price increase
during the global pandemic until 2022, generating a temporary increase in
revenues from ancillary services (i.e pick-up charges) and sales of equipment.
The normalisation of the market and prices, which have returned to pre-pandemic
levels, leads to a decline and therefore a "back to normal" situation of
ancillary services and sales.
Management activity amounts to EUR6.9 million during the 9-months period.
Management fees remain stable and sales fees increase supported by more sales
volume, while syndication fees decrease as the Group retains equipment on its
balance sheet for longer.
The increase of Leasing revenue on owned equipment and the slight decrease of
Sales of owned assets demonstrate the resilience of the Group's business model.
Long-term contract brings recurring revenues. Thanks to business diversification
(Freight Railcars, River Barges, Containers, Modular Buildings), the impact of
markets changes are limited. This year the container normalisation is offset by
the performance of other business lines. With the management activity, the Group
can also outsource some risks and generate commissions.
ANALYSIS OF CONTRIBUTIONS BY DIVISION
The Freight Railcars activity rose to EUR42.6 million (+5.3%) in the first nine
months:
* Owned activity expanded by +EUR2.3 million, resulting from both a +4.9%
increase in leasing revenue from owned equipment (+EUR1.6 million), and a
+EUR1.1 million increase of ancillary services related to re-invoicing of
wagon repairs.
The increase in leasing revenue is driven by a better utilisation rate (88.7%
versus 87.1% over the same period in 2022) and an improved daily leasing rate
(+11% in average); newly acquired railcars are also on lease.
* Management activity was however down during the period, due to the lack of
syndication fees (assets are kept longer on the balance sheet, so no
syndication fee was issued) and despite increasing management fees (+EUR0.25
million).
The River Barges activity saw a boost in leasing revenue of +7% in a business
context where the utilisation rate has been 100% since early 2023. However, the
Division revenue was down by -EUR1.8 million due to a decrease of ancillary
services related to the chartering activity on the Rhine River basin (also
leading to a reduction in operating expenses for an almost equivalent level).
The Containers activity posted a slowdown of -EUR11.5 million (-18.8%) compared
with the same period in 2022, impacted by the normalisation in the Container
business observed since the beginning of 2023 and mainly affecting ancillary
services and sales of owned equipment. Nevertheless, the leasing revenue on
owned equipment slightly increased by +EUR0.5 million despite a lower utilisation
rate (94.8% vs. 98.1% during the 9-months 2022 period). The high production of
new containers during the pandemic is generating a counter-cycle in 2023. With
the redelivery of old containers and a very low production of new assets, the
market overcapacity should be absorbed between now and the end of the year. This
counter-cycle is combined with a normalisation of container prices and will have
a beneficial effect on market stability.
In this context, sales of owned equipment declined by -EUR8.6 million (-22.2%)
owing to a primary container trading market less dynamic along with the price
drop. Ancillary services, high in 2022 with pick-up charges linked to trading,
followed the same path and decreased by -EUR2.3 million over the 9-months period.
Management activity also decreased by -EUR1.1 million, as a result of the -EUR1.6
million decline in syndication fees. However, with a larger volume of containers
available for sale on the secondary market, sales fees on containers owned by
investors rose by +EUR0.8 million to end September 2023.
The Modular Buildings activity presented on the "Miscellaneous" line rose
sharply to EUR12.5 million (+EUR7.4 million year on year). TOUAX produced and
delivered a large number of orders received at the start of 2023, after a low
point in 2022 when the pandemic ended.
+--------------------------------------------------------------------------------------
|Restated Revenue
|from activities Q1 Q2 Q3 Q1 Q2 Q3
| 2023 2023 2023 9M 2023 2022 2022 2022 9M 2022 Variation
|(in EUR thousand)
+--------------------------------------------------------------------------------------
Leasing revenue
on owned
equipment 11,124 11,615 11,856 34,595 10,544 11,142 11,292 32,978 1,617
------------------
Ancillary
services 1,938 1,937 2,082 5,957 1,858 1,177 1,820 4,855 1,102
------------------
Total
leasing activity 13,062 13,552 13,938 40,552 12,402 12,319 13,112 37,833 2,719
------------------
Sales of owned
equipment 76 132 133 341 110 238 369 717 -376
Total sales of
equipment 76 132 133 341 110 238 369 717 -376
---------------------------------------------------------------------------------------
Total of owned
activity 13,138 13,684 14,071 40,893 12,512 12,557 13,481 38,550 2,343
---------------------------------------------------------------------------------------
Syndication fees 0 0 0 0 0 446 1 447 -447
Management fees 538 553 586 1,677 466 451 507 1,424 253
---------------------------------------------------------------------------------------
Total of
management
activity 538 553 586 1,677 466 897 508 1,871 -194
---------------------------------------------------------------------------------------
Total Freight
railcars 13,676 14,237 14,657 42,570 12,978 13,454 13,989 40,421 2,149
---------------------------------------------------------------------------------------
Leasing revenue
on owned
equipment 1,878 1,886 1,880 5,644 1,619 1,789 1,869 5,277 367
------------------
Ancillary
services 2,072 1,629 2,090 5,791 1,807 2,385 3,788 7,980 -2,189
------------------
Total
leasing activity 3,950 3,515 3,970 11,435 3,426 4,174 5,657 13,257 -1,822
------------------
Sales of owned
equipment 0 5 0 5 0 0 0 0 5
Total sales of
equipment 0 5 0 5 0 0 0 0 5
---------------------------------------------------------------------------------------
Total of owned
activity 3,950 3,520 3,970 11,440 3,426 4,174 5,657 13,257 -1,817
---------------------------------------------------------------------------------------
Management fees 11 14 20 45 14 5 11 30 15
---------------------------------------------------------------------------------------
Total of
management
activity 11 14 20 45 14 5 11 30 15
---------------------------------------------------------------------------------------
Total River
Barges 3,961 3,534 3,990 11,485 3,440 4,179 5,668 13,287 -1,802
---------------------------------------------------------------------------------------
Leasing revenue
on owned
equipment 4,133 4,004 3,671 11,808 3,342 3,973 4,013 11,328 480
------------------
Ancillary
services 1,020 705 1,127 2,852 2,070 1,325 1,779 5,174 -2,322
------------------
Total leasing
activity 5,153 4,709 4,798 14,660 5,412 5,298 5,792 16,502 -1,842
------------------
Sales of owned
equipment 10,211 10,949 8,994 30,154 13,205 12,575 12,967 38,747 -8,593
Total sales of
equipment 10,211 10,949 8,994 30,154 13,205 12,575 12,967 38,747 -8,593
---------------------------------------------------------------------------------------
Total of owned
activity 15,364 15,658 13,792 44,814 18,617 17,873 18,759 55,249 -10,435
---------------------------------------------------------------------------------------
Syndication fees 0 544 -2 542 0 2,076 64 2,140 -1,598
Management fees 472 451 418 1,341 498 530 565 1,593 -252
Sales fees 861 1,710 674 3,245 336 1,349 801 2,486 759
---------------------------------------------------------------------------------------
Total of
management
activity 1,333 2,705 1,090 5,128 834 3,955 1,430 6,219 -1,091
---------------------------------------------------------------------------------------
Total Containers 16,697 18,363 14,882 49,942 19,451 21,828 20,189 61,468 -11,526
---------------------------------------------------------------------------------------
Leasing revenue
on owned
equipment 4 5 5 14 4 5 4 13 1
Ancillary
services 0 0 0 0 -3 -3 3 -3 3
Total leasing
activity 4 5 5 14 1 2 7 10 4
Sales of owned
equipment 2,766 5,809 3,897 12,472 1,547 1,436 2,056 5,039 7,433
Total sales of
equipment 2,766 5,809 3,897 12,472 1,547 1,436 2,056 5,039 7,433
---------------------------------------------------------------------------------------
Total of owned
activity 2,770 5,814 3,902 12,486 1,548 1,438 2,063 5,049 7,437
---------------------------------------------------------------------------------------
Other capital
gains on
disposals 1 1 -1 1 0 0 6 6 -5
---------------------------------------------------------------------------------------
Total Others 1 1 -1 1 0 0 6 6 -5
---------------------------------------------------------------------------------------
Total
Miscellaneous
and eliminations 2,771 5,815 3,901 12,487 1,548 1,438 2,069 5,055 7,432
---------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------
Total Restated
Revenue from
activities 37,105 41,949 37,430 116,484 37,417 40,899 41,915 120,231 -3,747
---------------------------------------------------------------------------------------
OUTLOOK
TOUAX pursues its strategy and continues to roll out its operational leasing
solutions for sustainable transportation, thanks to a resilient business model
and recurring revenues based on long-term contracts.
TOUAX's activities should keep benefiting from the growing awareness of major
industrial and large logistics groups on the need to decarbonise their transport
activities (responsible for 30% of global CO2 emissions).
With a unique expertise in intermodal, rail and inland waterway transport, TOUAX
benefits from a main position in sustainable transport, and is thereby
contributing to environmental protection by providing a low-carbon way of
transportation and a high standard of compliance with best social and governance
practices. The latest extra-financial rating published by EcoVadis on 31 October
2023 demonstrates a clear improvement. TOUAX was awarded the EcoVadis 2023 Gold
Medal and now belongs to the top 5% of companies in all sectors.
UPCOMING DATES
* 21 March 2024: Press Release on 2023 annual results (French / English)
* 21 March 2024: Presentation of 2023 annual results in Paris (in French)
* 22 March 2024: Presentation of 2023 annual results (video conference in
English)
The TOUAX Group leases tangible assets (freight railcars, river barges and
containers) every day throughout the world on its own behalf and on behalf of
investors. With EUR1.2 billion under management, TOUAX is one of Europe's leading
leasing companies for this type of equipment.
TOUAX is listed in Paris on EURONEXT Compartment C (ISIN Code FR0000033003) and
is included in the CAC® Small CAC® Mid & Small and EnterNext©PEA-PME 150
indices.
For more information: www.touax.com
Your contacts:
TOUAX SEITOSEI ? ACTIFIN
Fabrice & Raphaël WALEWSKI Ghislaine Gasparetto
touax@touax.com ggasparetto@actifin.fr
www.touax.com Tel : +33 1 56 88 11 22 +33 1 46 96 18 00
APPENDIX: Accounting presentation of revenue from activities
-------------------------------------------------------------------------------
Revenue from
activities Q2 Q3 Q1 Q2 Q3
Q1 2023 2023 2023 9M 2023 2022 2022 2022 9M 2022
(in EUR thousand)
-------------------------------------------------------------------------------
Leasing revenue
on owned
equipment 17,139 17,510 17,412 52,061 15,509 16,909 17,178 49,596
Ancillary
services 6,436 5,201 6,238 17,875 6,578 8,632 8,886 24,096
Total
leasing activity 23,575 22,711 23,650 69,936 22,087 25,541 26,064 73,692
Sales of owned
equipment 13,053 16,895 13,024 42,972 14,862 14,249 15,392 44,503
Total sales of
equipment 13,053 16,895 13,024 42,972 14,862 14,249 15,392 44,503
-------------------------------------------------------------------------------
Total of owned
activity 36,628 39,606 36,674 112,908 36,949 39,790 41,456 118,195
-------------------------------------------------------------------------------
Leasing revenue
on managed
equipment 9,485 9,418 8,866 27,769 10,819 10,917 11,382 33,118
Syndication fees 0 544 -2 542 0 2,522 65 2,587
Management fees 372 380 397 1,149 270 286 364 920
Sales fees 861 1,710 674 3,245 336 1,349 801 2,486
-------------------------------------------------------------------------------
Total of
management
activity 10,718 12,052 9,935 32,705 11,425 15,074 12,612 39,111
-------------------------------------------------------------------------------
Other capital
gains on
disposals 1 1 -1 1 0 0 6 6
-------------------------------------------------------------------------------
Total Others 1 1 -1 1 0 0 6 6
-------------------------------------------------------------------------------
Total Revenue
from activities 47,347 51,659 46,608 145,614 48,374 54,864 54,074 157,312
-------------------------------------------------------------------------------
Table showing the transition from summary accounting presentation to restated
presentation:
+-------------------
|Revenue from
|activities 9M 2023 9M 2022
| 9M 2023 Restatement restated 9M 2022 Restatement restated
|(in EUR thousand)
|
Leasing revenue on
owned equipment 52,061 52,061 49,596 49,596
Ancillary services 17,875 -3,275 14,600 24,096 -6,090 18,006
Total
leasing activity 69,936 -3,275 66,661 73,692 -6,090 67,602
Sales of owned
equipment 42,972 42,972 44,503 44,503
Total sales of
equipment 42,972 42,972 44,503 44,503
-------------------------------------------------------------------------------
Total of owned
activity 112,908 -3,275 109,633 118,195 -6,090 112,105
-------------------------------------------------------------------------------
Leasing revenue on
managed equipment 27,769 -27,769 0 33,118 -33,118 0
Syndication fees 542 542 2,587 2,587
Management fees 1,149 1,914 3,063 920 2,127 3,047
Sales fees 3,245 3,245 2,486 0 2,486
-------------------------------------------------------------------------------
Total of
management
activity 32,705 -25,855 6,850 39,111 -30,991 8,120
-------------------------------------------------------------------------------
Other capital
gains on disposals 1 1 6 6
-------------------------------------------------------------------------------
Total Others 1 0 1 6 0 6
-------------------------------------------------------------------------------
Total Revenue from
activities 145,614 -29,130 116,484 157,312 -37,081 120,231
------------------------------------------------------------
--------------------------------------------------------------------------------
1 Based on a comparable structure and average exchange rates at 30 September
2022.
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