Investor Presentation · This presentation does not constitute or form part of and should not be...
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Investor Presentation
September 08 2020
Goldman Sachs
EMEA Leverage Finance Conference
September 2020
08 September 2020Goldman Sachs
EMEA Leverage Finance Conference 20202
Disclaimer
This presentation and any related oral information (the “Information”) is strictly confidential and has been prepared solely for use in this presentation. This
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commitment or investment decision whatsoever.
08 September 2020Goldman Sachs
EMEA Leverage Finance Conference 20203
Presenting today
Patrick Bourmaud
Chief Financial Officer
Stéphane Hénon
Managing Director
Laurent BERTRAND
Finance Director
Goldman Sachs
EMEA Leveraged Finance Conference
08 September 2020
Loxam in a nutshell
08 September 2020Goldman Sachs
EMEA Leverage Finance Conference 20205
Loxam in a nutshellEurope’s #1, World’s #4 equipment rental company
#1European equipment
rental player
#4Worldwide equipment
rental player
€2.3 bnFY 2019 PF revenue
30Presence in 30
countries
11,400Staff
1,069Branches
350,000Customers
550,000pieces of
equipment
72,000powered access
units
Goldman Sachs
EMEA Leveraged Finance Conference
08 September 2020
Equipment Rental
Market
08 September 2020Goldman Sachs
EMEA Leverage Finance Conference 20207
End MarketsMostly construction, but not only
58%
42%
Non Construction
Construction
Building construction / Civil engineering
Industrials
Services
Local authorities
Events & Media
08 September 2020Goldman Sachs
EMEA Leverage Finance Conference 20208
Equipment rental vs. Construction correlation
Equipment rental trend anticipates construction cycle
-15%
-10%
-5%
0%
5%
10%
15%
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Construction Rental
08 September 2020Goldman Sachs
EMEA Leverage Finance Conference 20209
Construction forecasts
Sharp drop in 2020 in Western and Southern Europe
Source: Euroconstruct (August 2020)
3%
-9%
4%
2019E 2020F 2021F
Europe (19 countries)
3%
-14%
12%France
0% -2% -3%
Sweden
-2%
0%
-4%
Finland
3%
-25%
15%UK
2%
-3%
3%Norway
4%
-15%
6%Spain
9%
-1%
0%
Denmark
3%
-7%
8%Italy
2%
-3%
1%Germany
08 September 2020Goldman Sachs
EMEA Leverage Finance Conference 202010
Rental market supported by strong drivers
Increasing
equipment
rental
penetration
Flexible charge vs. capex
No maintenance cost
No disposal risk
Cost of
ownership
Health & safety norms imposing equipment
Trend to mechanise tasks
Favours powered access
Safety &
working
conditions
Equipment
Sharing /
usage
economy
Latest generation equipment
Specific machine for each job
Renting is sharing
Sustainable development
08 September 2020Goldman Sachs
EMEA Leverage Finance Conference 202011
European competitive environment
Clear #1 for equipment rental
Clear #1 for powered access equipment rental
Leading positions(b)
(European players by 2019 revenue €m)
(2019, AWP fleet size in units)
Source: Company information, International Rental News ranking; Access International ranking, Loxam estimates
(a) In the powered access market
(b) By revenue
#1
#1(a)
#1
#2
#2
Benelux
#2
2 295
1 266
737 715 560 509 484 480 466 430
1 2 3 4 5 6 7 8 9 10
71 800
39 647 33 201
19 000 18 334 18 000 11 138 7 950 7 393 7 320
1 2 3 4 5 6 7 8 9 10
#1
#1
#1
#1
#1
#1
Goldman Sachs
EMEA Leveraged Finance Conference
08 September 2020
Business Overview
08 September 2020Goldman Sachs
EMEA Leverage Finance Conference 202013
Generalist FranceClosely knitted network & broad equipment offer
Key data LTM
Revenue(a) € 606m
EBITDA margin(a) 38%
Nb of branches(b) 416
Headcount(b) 3,604
Share of LTM
group revenue to
30/06/20
(a) LTM 30/06/2020; (b) as of 30 June 2020
Historical business of Loxam
Local relationships critical
Broad equipment range
2 national players and multiple
regional and local players
29%
08 September 2020Goldman Sachs
EMEA Leverage Finance Conference 202014
Specialist FranceBusiness units addressing specific market segments
Key data
Revenue(a) € 220m
EBITDA margin(a) 35%
Nb of branches(b) 78
Headcount(b) 814
Share of LTM
group revenue to
30/06/20
6 business units with dedicated
networks and management teams
Deep equipment ranges
Technical expertise critical
Competition with specialist players:
Aggreko, Algeco, Riwal
(a) LTM 30/06/20; (b) as of 30 June 2020
10%
08 September 2020Goldman Sachs
EMEA Leverage Finance Conference 202015
InternationalPresence mostly in Western Europe
Key data
Revenue(a) € 1,274m
EBITDA margin(a) 34%
Nb of branches(b) 574
Headcount(b) 6,687
Share of LTM
group revenue to
30/06/20
Present in 30 countries
Market leader in over 10 countries
Acceleration of development in the
past 10 years
Generalist, Specialist or mixed
business units
RoW: 5% of consolidated revenue
(a) LTM 30/06/20; (b) as of 30 June 2020
61%
08 September 2020Goldman Sachs
EMEA Leverage Finance Conference 202016
A comprehensive equipment fleetMaintained to the highest standard
Main equipment categories
Modulars• Modular spaces
• Containers
Building &
Others
• Concrete processing
• rucks
• Powertools
Energy• Compressors
• Generators
• Heaters & coolers
Handling • Forklift and telehandlers
Compaction• Compactors
• Rammers, rollers
Earth moving• Excavators
• Loaders, dumpers
Aerial work
platforms
• Booms, scissors
• Van mount, truck mountProcurement
Maintenance
Repair
Control
Disposal
- Recognized international brands
- Loxam specifications
- Corporate colors
- No volume commitments
- Stringent internal procedures
- Client safety first
- Regulatory safety checks outsourced
- Ensure fleet availability
- Technical decision at end of life
- Auctioneers
- Machines fully depreciated
- Stable second-hand prices
Scaffolding• Fixed scaffolding
• Mobile scaffolding
• Lifts
08 September 2020Goldman Sachs
EMEA Leverage Finance Conference 202017
Branch focus
Profit centres with allocated resources
Fleet "owned" by branches
All KPIs monitored at branch level
Branches operating like their local
competitors
Support by central functions
Operational managementProfit-centres and standardised operational processes
Profit-centres Operational processes
Branches
Stringentprocesses
Ongoingstaff
training
Audit and quality
controls
08 September 2020Goldman Sachs
EMEA Leverage Finance Conference 202018
Main business achievements of 2020
Digital Transformation International BU market place
Digital invoicing
Contactless payment
Punch-out with customers’ procurement
tool
Customer Focus “Best customer service 2020” award
High Net Promoter Score of 59
Development of craftsmen customer
segment
Operations Efficient management of Covid
pandemic
Integration of Stavdal and Loxam
Norway within Ramirent
08 September 2020Goldman Sachs
EMEA Leverage Finance Conference 202019
MAKE OUR WIDESPREAD LOCAL PRESENCE AN OPPORTUNITY FOR THE REGIONS
SAFEGUARD SAFETY ANYTIME AND ANYWHERE
TAKE ACTION TO PRESERVE OUR RESOURCES
HELP OUR STAFF DEVELOP
LEAD BY EXAMPLE IN CORPORATE GOVERNANCE AND ETHICS
Solid CSR fundamentals based on five pilars
Goldman Sachs
EMEA Leveraged Finance Conference
08 September 2020
Financial Performance
08 September 2020Goldman Sachs
EMEA Leverage Finance Conference 202021
Consistent revenue growthInternational revenue multiplied by 7x over last 5 years
Favorable long term growth pattern
Acceleration of growth at International division
650544 480 548 571 547 511 512 573 623 656 681 606
5549 117
137 138 138 143 144164
213 229 243220
143
105 106122 119 120 158 182
190
532598
1370
1274
848
698 703807 828 805 812 838
927
13681483
2294
2100
0
200
400
600
800
1000
1200
1400
1600
1800
2000
2200
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 PF* 06/2020LTM PF*
Generalist France Specialist France International
08 September 2020Goldman Sachs
EMEA Leverage Finance Conference 202022
Resilient and first class EBITDA margin
EBITDA margin consistently above 30% through the cycle
Among the highest margins of European equipment rental players
302235 234
275 274245 256 277
305
464501
850
748
36%
34% 33%34%
33%
30%32%
33% 33%34% 34%
37%36%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 PF* 06/2020LTM PF*
Post IFRS 16
*PF : pro forma for the Ramirent acquisition on a twelve months basis; EBITDA post IFRS 16 since 2019, including synergies
08 September 2020Goldman Sachs
EMEA Leverage Finance Conference 202023
Capex driven by market prospects
127
210
90 85 97 98
184 173 171
246
192
252
116
194
28
96
165
127
190
234
124
198
400373
345
84
0
50
100
150
200
250
300
350
400
450
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 H1'20
Gross book value of disposed fleet equipment Fleet Capex
Gross Fleet Capex and Disposals (€m)
08 September 2020Goldman Sachs
EMEA Leverage Finance Conference 202024
Free cash flow counter-cyclicality
9%
13%
3%
-18%
0%
10%
-2% -3% -3%0%
5%
9%
4%2%
-17%
( 160)
( 120)
( 80)
( 40)
0
40
80
120
160
200
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 H1 2020
YoY Revenue growth (at constant perimeter and FX) Recurring FCF (€m - RHS)
Annual revenue growth and FCF evolution since 2005
08 September 2020Goldman Sachs
EMEA Leverage Finance Conference 202025
Debt leverage at 5.1x as at 30/06/20
1 099886 811 857 778 833 952 1 025 1 141
2 121 2 136
4 011 3 8013,6x 3,8x 3,5x
3,0x 2,8x 3,4x 3,7x 3,5x 3,7x4,4x 4,2x
4,7x5,1x
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 PF* 2020 LTM
Net DEBT (m€) Leverage
* 2019 Ratio calculated on 2019 EBITDA proforma for the Rarmient acquisition, including synergies
Post IFRS 16
08 September 2020Goldman Sachs
EMEA Leverage Finance Conference 202026
Debt maturity profile as of 30/06/20
250
200
450
300
700
250
300250
300
7526
5050
50
48
23
719
108278
180 24851
Cash * 2020 2021 2022 2023 2024 2025 2026 2027
885 €m Bilaterals and financial leases
247 €m State-guaranteed-Loan - PGE
75 €m RCF
300 €m Senior Secured Notes
250 €m Senior Secured Notes
300 €m Senior Secured Notes
250 €m Senior Subordinated Notes
700 €m Senior Secured Notes
300 €m Senior Secured Notes
450 €m Senior Secured Notes
200 €m Senior Subordinated Notes
250 €m Senior Subordinated Notes
Debt maturity profile (in €m)
* net of Ramirent's commercial papers of 107M€
08 September 2020Goldman Sachs
EMEA Leverage Finance Conference 202027
Revenue of €927 m, -17%, (at constant perimeter and FX)
EBITDA of €305m, -22% (at constant perimeter and FX)
EBITDA margin of 33%
Positive free cash flow of €181 m
Net debt to proforma EBITDA: 5.08x
H1 2020 Financial highlights
Goldman Sachs
EMEA Leveraged Finance Conference
08 September 2020
Roadmap
08 September 2020Goldman Sachs
EMEA Leverage Finance Conference 202029
Construction markets may not recover pre-crisis level
Strict monitoring of expenses and capex
Continued positive free cash flow
Roadmap H2 2020