Touax: Growth in business activity at end-September 2022

PRESS RELEASE        Paris, 14 November 2022 – 5.45 p.m.

YOUR OPERATIONAL LEASING SOLUTION FOR SUSTAINABLE TRANSPORTATION

Growth in business activity at end-September 2022

The Group’s performance remains strong in a more uncertain global economic environment.

Total restated revenue from activities at the end of the third quarter amounted to €120.2 million (€112.8 million at constant scope and currency¹), compared with €82.7 million in the same period in 2021, for an increase of €37.5 million (+45.3%). The positive exchange rate effect linked to the dollar and focused on the Containers business was €7.2 million.

(*) 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 new 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.

DYNAMIC GROWTH IN OWNED AND MANAGEMENT ACTIVITIES AT END-SEPTEMBER 2022

Owned activities grew by €34.2 million over nine months, with respective increases of €14.2 million for leasing activity and €20.0 million for equipment sales activity thanks to sales of own-account containers, which outperformed.

Management activity grew by €3.3 million, with an increase of €1.6 million in syndication fees (Freight Railcars and Containers activities) and sales fees on used equipment belonging to investors (+€1.4 million in the Containers activity).

ANALYSIS OF CONTRIBUTIONS BY DIVISION

The Freight Railcars activity rose (+11.3%) to €40.4 million in the first nine months:

• Owned activity expanded by €3.6 million, resulting from an increase in leasing revenue from owned equipment (+15.7%), driven by growth in the utilisation rate (87.1% versus 84.6% over the same period in 2021) and by the leasing of newly acquired railcars.

• Management activity was also up, with syndication fees increasing by €0.4 million with transactions carried out in June 2022.

The River Barges activity saw a boost in revenue of €5.1 million thanks to the vigorous level of barge chartering in the Rhine basin. The utilisation rate in the third quarter of 2022 was nearly 100% in the division.

The Containers activity posted a sharp increase of €33.9 million. The performance of leasing activity remained strong (+€5.4 million) with an average utilisation rate of 98.1% over the period. However, most of the increase came from sales of owned equipment (new built containers trading activity), which rose by €25.8 million. Management activity increased by €2.8 million, spurred by syndication fees in the second quarter and commissions on the sale of investor equipment.

The Modular Buildings activity in Africa, presented on the “Miscellaneous” line, was down €5.6 million with fewer projects delivered than in 2021.

OUTLOOK

In the current context of inflationary pressures and rising interest rates, Touax continues to roll out its activities, thanks to a resilient business model and recurring revenues based on long-term contracts. The Group plans to seize new asset acquisition opportunity over the coming months, while also adopting a prudent investment policy. The current inflationary environment has a positive effect on the valuation of the portfolio of assets. However, prices have normalised in the container business, with the purchase price of new containers returning to the average levels of 2020.

From a structural and medium- to long-term perspective, the business outlook in the long-term leasing of equipment for sustainable transportation is positive. Our various asset classes are benefiting from developments in relation to infrastructures, e-commerce and intermodal logistics as they keep pace with the expectations of consumers, industrial groups, public authorities, lenders and investors around green transport.

UPCOMING EVENTS

• 22 March 2023: Press release on annual results (English/French)
• 22 March 2023: Presentation of annual results to financial analysts in Paris (in French)
• 23 March 2023: Investor call (in English)

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 €1.3 billion in assets under management, TOUAX is a European leader in the leasing of this type of equipment.

TOUAX is listed on the EURONEXT stock market in Paris – Euronext Paris Compartment C (ISIN: FR0000033003) – and is listed on the CAC® Small, CAC® Mid & Small and EnterNext©PEA-PME 150 indices.

For further information please visit: www.touax.com

Contacts:
TOUAX        ACTIFIN
Fabrice & Raphaël Walewski        Ghislaine Gasparetto
touax@touax.com        ggasparetto@actifin.fr
www.touax.com        Tel: +33 1 56 88 11 11
Tel: +33 1 46 96 18 00        

APPENDIX: Accounting presentation of revenue from activities

Table showing the transition from summary accounting presentation to restated presentation

1 Based on a comparable structure and average exchange rates at 30 September 2021.

Attachment

• TOUAX PR Q3 2022 VA