Press Release

Paris - October 26th, 2020

THIRD QUARTER 2020 RESULTS

POSITIVE QUARTERLY ADJUSTED CORPORATE EBITDA,

THANKS TO COST ADAPTATION MEASURES TAKEN SINCE Q1 2020

BUSINESS STILL IMPACTED BY COVID-19

FINANCIAL RESTRUCTURING LAUNCHED

Q3 2020 AND 9M 2020 HIGHLIGHTS1

  • Q3 2020 results impacted, as expected, by travel restrictions on Leisure and Corporate business. On a proforma basis2, revenue was down -50% to €537m in Q3 2020 vs Q3 2019
  • Intensification of cost measures adaptation3 to face with the current environment: ~€736m over the first 9 months 2020 of which ~€363m in Q3 2020
  • Positive Adj. Corporate EBITDA (IFRS 16) in Q3 2020: +€54m versus +€247m in Q3 2019
  • Managing cash & liquidity, limiting cash consumption to €71m in Q3 2020 after €184m in Q2 2020
  • Corporate Net Debt at €1,322m as at September 30th, 2020

2020 OUTLOOK

  • In the light of the second wave of covid-19 outbreak and the related uncertainties, we consider that we can no longer provide a FY 2020 guidance
  • Cost adaptation for the FY 2020 ahead of expectations3 and close to €1bn now anticipated, exceeding initial target of €850m, i.e. ~30% reduction on the cost base versus pre Covid-19 scenario
  • Roll-outof "Reboot & Connect", adaptation and transformation plan, with short-term measures (2020/2021) and mid- term business re-engineering:
    o "Reboot": adapt products & services, streamline cost base, preserve cash
    o "Connect": accelerate transformation, reshaping the Group around customers' needs and expectations, with 4 enabling pillars: fleet / network / IT / organization

FINANCIAL RESTRUCTURING

Following, as stated in the press release issued on 2020, October 14th, the receipt of requisite majority consents from holders of its Senior Notes and EC Finance plc's Senior Secured Notes and execution of supplemental indentures, a Mandataire ad

hoc has been appointed at Europcar Mobility Group. The Group's objective, through discussions with its corporate debt

creditors with a view to achieving a financial restructuring, is to ensure a sustainable capital structure adapted to its level of revenue, with reduced corporate indebtedness and appropriate liquidity. The market will be informed in due time of the outcome of these discussions, the duration of which is currently undetermined.

  1. After IFRS 16 application, excluding non-fleet liabilities related to leases
  2. Proforma basis i.e. including acquisitions of Fox consolidated in November 2019 and franchisees in Finland and Norway in July 2019
  3. With reference to the €3bn cost base initially planned pre-Covid-19

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Caroline Parot, CEO of Europcar Mobility Group, declared:

"Despite a Summer activity impacted by Covid-19, resulting in a Q3 revenue down -50% vs Q3 2019, our Group managed to generate positive Adjusted Corporate EBITDA, at €54m post IFRS 16, thanks to the strong adaptation measures we took over the course of H1 in the framework of our 'Reboot' plan.

Relying on the flexibility and adaptability of our operating model, our cost adaptation efforts for the full year 2020 will come close to €1bn savings. However, in a volatile and highly uncertain business environment, as the Covid-19 outbreak develops again at an unpredictable pace, we consider that we can no longer provide a FY 2020 guidance.

Regarding our mid-term perspectives, 'Connect', our strategic plan based on the crisis aftermath, will help us accelerate our transformation and reshape our Group around new customers' needs and expectations, notably in their digital dimension.

We are therefore fully confident in our capacity, with the adapted indebtedness level and capital structure which should stem from the financial restructuring process we are currently managing, to fully benefit from the Travel & Leisure industry rebound and progressive recovery, when they happen."

Europcar Mobility Group invites you to its 9M 2020 Results Conference Call on:

Monday, October 26th, at 8:00am CET

Dial-in Access telephone numbers:

France: +33 (0)1 70 72 25 50

Germany: +49 (0)89 20303 5709

UK: +44 (0)330 336 9125

USA: +1 929-477-0402

Confirmation code: 7779542

Webcast:https://globalmeet.webcasts.com/starthere.jsp?ei=1376301&tp_key=a733279dd5

Slides related to the results of the first 9 months 2020 are available on the Group's website https://investors.europcar-group.com/results-centerin the "Financial documentation" section.

2

Q3 2020 financial results

% Change at

All data in €m, except if mentioned

Q3 2020

Q3 2019

% Change

constant perimeter

and currency

Number of rental days (million)

16.2

29.1

-44.3%

-46.8%

Average Fleet (thousand)

243.0

395.0

-38.5%

-41.2%

Financial Utilization rate

72.5%

80.0%

Total revenues

537.2

1 008.2

-46.7%

-49.5%

Adjusted Corporate EBITDA (IFRS 16)

54.4

247.4

-78.0%

-76.8%

Adjusted Corporate EBITDA Margin

10.1%

24.5%

Operating Income

18.4

211.0

91.3%

90.8%

Net profit/loss

(9.7)

128.9

Corporate Free Cash Flow

(47.0)

67.0

Corporate Net Debt at end of the period

1 322.1

851.1

Change in perimeter: acquisitions of Fox Rent A Car consolidated in November 2019 and franchisees in Norway and Finland in July 2019 are included in 9M 2019 for the calculation of the "% change at constant perimeter and currency".

Management Account presentation:

9M 2019 and 9M 2020 figures include Urban Mobility Corporate EBITDA performance

9M 2019 and 9M 2020 accounts are presented under IFRS 16, unless explicitly mentioned

9M 2020 financial results

% Change at

All data in €m, except if mentioned

9M 2020

9M 2019

% Change

constant perimeter

and currency

Number of rental days (million)

42.9

69.5

-38.2%

-41.9%

Average Fleet (thousand)

260.7

329.0

-20.8%

-25.5%

Financial Utilization rate

60.1%

77.3%

Total revenues

1 352.0

2 314.7

-41.6%

-46.0%

Adjusted Corporate EBITDA (IFRS 16)

(154.2)

329.2

Adjusted Corporate EBITDA Margin

14.2%

Operating Income

(249.4)

225.2

Net profit/loss

(295.9)

60.1

Corporate Free Cash Flow

(342.3)

108.7

Corporate Net Debt at end of the period

1 322.1

851.1

3

PROFIT & LOSS Q3 2020

While Q3 2020 was also marked by the pandemic, particularly impacting the Group's activity in airports for international customers and to a lower extent, for domestic customers, the Group stepped up its efforts to lower its cost base. As a result, the Group generated substantial cost savings - €363 m during the quarter (and - €736m over the first 9 months 2020 in reference to the €3bn initial cost base planned for 2020) and recorded positive Corporate EBITDA of €54.4m in Q3 2020.

% Change at

All data in €m

Q3 2020

Q3 2019

% Change

constant perimeter

and currency

Total revenue

537.2

1 008.2

-46.7%

-49.5%

Average fleet size ('000)

243.0

395.0

-38.5%

-41.2%

Rental days volume (in Million)

16.2

29.1

-44.3%

-46.8%

Utilization rate

72.5%

80.0%

Fleet holding costs

(150.8)

(227.4)

33.7%

40.1%

Fleet operating and variable costs

(175.5)

(319.2)

45.0%

49.1%

Total fleet costs & variable costs

(326.3)

(546.6)

40.3%

45.3%

Margin after variable costs

210.9

461.6

-54.3%

-54.9%

In % of revenue

39.3%

45.8%

Network

(79.0)

(111.4)

29.1%

35.6%

HQ Costs

(52.1)

(69.7)

25.3%

29.3%

Fleet financing costs

(25.3)

(33.1)

23.5%

31.7%

Adjusted Corporate EBITDA (IFRS 16)

54.4

247.4

In % of revenue

10.1%

24.5%

IFRS 16 impact on premises and parking

(18)

(24)

IFRS 16 impact on the fleet cost & variable costs

(10)

(5)

Adjusted Corporate EBITDA excl. IFRS-16

26

218

Margin

4.9%

21.6%

Depreciation - excluding vehicle fleet:

(42.4)

(39.5)

-7.5%

-5.9%

Non-recurring income and expense

(9.6)

(14.5)

33.7%

39.8%

Other financing income and expense not related to the fleet

(32.8)

(21.4)

-53.4%

-44.9%

Profit/loss before tax

(30.4)

172.0

Income tax

20.7

(42.8)

Share of profit/(loss) of associates

-

(0.1)

Net profit/(loss) excl. IFRS 16

(8.3)

133.6

Net profit/(loss) incl. IFRS 16

(9.7)

129.0

Margin after Direct costs

183.6

421.5

-56.4%

-56.6%

Margin

34.2%

41.8%

MADC: Margin after Direct costs: MAVC - Sales & Marketing - fleet financing costs

The following analysis of the Profit & Loss is at constant perimeter and exchange rates, with Fox consolidated in the Low-Cost BU and franchisees in Finland and Norway in the Cars BU and Vans & Trucks.

1. Revenue in Q3 2020 and 9M 2020

Revenue in Q3 2020

On a reported basis, total revenue decreased by -47% to €537m in Q3 2020.

At constant perimeter and exchange rates (i.e. proforma basis), revenue was down -50% over the quarter, splitting into -55% in July, -48% in August and -44% in September, with rental days down -47%, with good RPD resilience despite heavy change in customer mix and durations.

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Europcar Mobility Group SA published this content on 26 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 October 2020 06:14:01 UTC