Earnings Release • Jul 28, 2021
Earnings Release
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Press Release Paris – July 28th, 2021
"Over the first 2021 semester, the Travel & Leisure environment slightly improved in Europe and continued to show healthy recovery in the US. In this context, Europcar Mobility Group recorded a rebound in revenue vs H1 2020, at +3.6%, with Q2 2021 revenue almost doubled vs LY.
In line with its cost adaptation plan to mitigate the impact of the sanitary crisis, the Group continued to manage daily operations with strict discipline, allowing for further reduction of its breakeven point and cash optimization.
1 Proforma basis: at constant exchange rate and perimeter
As already stated at the occasion of our first quarter publication, the roll out of our strategic roadmap, "Connect", is well on track, with significant achievements and deliveries over the course of H1, with notably the implementation of new go-to-market by Service Line, the successful launch of a very innovative, highly flexible subscription model for professionals, as well as the ramp-up of the "One Connected Fleet" program.
Regarding Q3 2021 onwards, our views remain cautious. Although we see reasons to be reasonably optimistic regarding what is ahead of us, based on a very healthy business dynamic in the US and as vaccination rates increase at a fast pace, the spread of the delta variant generates uncertainties, again.
We are nevertheless confident that we have created the operational conditions to rebound strongly as soon as the sanitary conditions significantly improve, and anticipate 2021 FY revenue to be significantly higher than in 2020, along with a Corporate net debt under control."
Europcar Mobility Group invites you to its H1 2021 Results Conference Call on: Thursday, July 28th, at 6:00pm CET
France : +33 (0)1 70 72 25 50 Germany: +49 (0)89 20303 5709 UK: +44 (0)330 336 9125 USA: +1 646-828-8193 Confirmation Code: 1076569
You can watch the presentation on the following link:
https://globalmeet.webcasts.com/starthere.jsp?ei=1467355&tp\_key=cda17b45dd
Slides related to first half 2021 results are available on the Group's website, in the "Financial documentation" section:
https://investors.europcar-group.com/results-center
The trend in Travel & Leisure industry has evolved significantly since the beginning of the year with disparities across countries, depending on governments' decisions to ease restrictions and to open up travel again, as well as on the speed of the vaccination campaigns.
In Q1 2021, the whole industry remained globally challenging in Europe with lockdowns, travel restrictions and stringent sanitary constraints. During that quarter, the US started to strongly rebound (confirmed in Q2) with domestic air traffic recovering, owing to widespread vaccination campaigns.
In Q2 2021, domestic travel in Europe slightly improved with travel restriction ease and increased vaccinated people (48%2 on average of the population aged 18+ in France, the UK, Spain, Portugal, Italy and Germany early July 2021 compared to 7% at the end of Q1 2021). But business remained constrained due to sudden and unexpected rule changes from Governments on travelling and lack of coordination across countries in Europe creating confusion among population, as the fast-spreading Delta variant of coronavirus, prompted new travel restrictions. During that period, international travel remained low.
| All data in €m, except if mentioned | Q2 2021 | Q2 2020 | % Change | % Change at constant perimeter and currency |
|---|---|---|---|---|
| Number of rental days (million) | 14.3 | 9.5 | 50.5% | 50.5% |
| Average Fleet (thousand) | 210.0 | 258.3 | -18.7% | -18.7% |
| Financial Utilization rate | 74.9% | 40.4% | ||
| Total revenues | 486.2 | 257.9 | 88.5% | 88.0% |
| Adjusted Corporate EBITDA (IFRS 16) | 19.7 | (144.5) | ||
| Adjusted Corporate EBITDA Margin | 4.0% | |||
| Operating Income | (5.7) | (178.8) | 96.8% | |
| Income before taxes | (49.5) | (228.4) | -78.3% | |
| Net profit/loss | (46.1) | (181.2) | -74.6% | |
| Corporate Free Cash Flow | 16.2 | (159.5) | ||
| Corporate Net Debt at end of the period | 266.0 | 1 250.5 |
NB: Average fleet and utilization rate include Urban Mobility. Historical data have been adjusted accordingly
2 Source : ECDC (European Centre for Disease Prevention and Control)
| All data in €m, except if mentioned | H1 2021 | H1 2020 | % Change | % Change at constant perimeter and currency |
|---|---|---|---|---|
| Number of rental days (million) | 26.0 | 27.0 | -3.7% | -3.7% |
| Average Fleet (thousand) | 198.7 | 275.5 | -27.9% | -27.9% |
| Financial Utilization rate | 72.4% | 53.9% | ||
| Total revenues Adjusted Corporate EBITDA (IFRS 16) |
842 (25) |
815 (209) |
3.3% | 3.6% |
| Operating Income | (90.0) | (267.2) | ||
| Income before taxes | (131.6) | (363.5) | ||
| Net profit/loss | (122.7) | (286.2) | ||
| Corporate Free Cash Flow | (83.8) | (296.3) | ||
| Corporate Net Debt at end of the period | 266.0 | 1 250.5 |
NB: Average fleet and utilization rate include Urban Mobility. Historical data have been adjusted accordingly
No change in perimeter between H1 2021 and H1 2020. As a reminder, the last 2 acquisitions were Fox Rent A Car in the US consolidated in November 2019 and franchisees in Norway and Finland in July 2019.
Management Account presentation: H1 2020 and H1 2021 accounts are presented under IFRS 16, unless explicitly mentioned
Revenue and Profit & Loss are analyzed through the evolution at constant perimeter and exchange rates. Reported changes are in Appendix.
| All data in €m | H1 2021 | H1 2020 | % Change at constant perimeter and currency |
H1 2019 PF | % Change at constant perimeter* |
|---|---|---|---|---|---|
| Total revenue | 841.9 | 814.8 | 3.6% | 1 440.7 | -41.6% |
| Average fleet size ('000) | 198.7 | 275.5 | -27.9% | 324.3 | -38.7% |
| Rental days volume (in Million) | 26.0 | 27.0 | -3.7% | 43.7 | -40.5% |
| Utilization rate | 72.4% | 53.9% | 74.6% | ||
| Fleet holding costs | (238.2) | (333.6) | 28.5% | (380.1) | 37.3% |
| Variable costs | (309.5) | (322.3) | 3.5% | (494.0) | 37.3% |
| Sales and marketing expenses | (6.7) | (10.3) | 35.5% | (21.0) | 68.3% |
| Fleet financing costs | (46.6) | (58.1) | 19.3% | (66.5) | 30.0% |
| Direct & variable costs | (600.9) | (724.4) | 16.7% | (961.6) | 37.5% |
| Margin after Direct costs | 241.0 | 90.4 | 164.6% | 479.2 | -49.7% |
| In % of revenue | 28.6% | 11.1% | 33.3% | ||
| Network | (125.3) | (152.9) | 17.4% | (218.0) | 42.5% |
| HQ Costs | (140.5) | (146.2) | 3.7% | (186.0) | 24.5% |
| Fixed & semi-fixed costs | (265.8) | (299.0) | 10.7% | (404.0) | 34.2% |
| Adjusted Corporate EBITDA (IFRS 16) | (24.8) | (208.7) | 75.1 | ||
| In % of revenue | 5.2% | ||||
| Depreciation – excluding vehicle fleet: | (68.4) | (77.1) | 11.8% | (75.1) | 9.0% |
| Non-recurring income and expense | (18.5) | (20.4) | (26.0) | ||
| Other financing income and expense not related to the fleet | (42.3) | (57.3) | 25.8% | (76.6) | 44.8% |
| Net financial restructuring costs | 22.3 | - | |||
| of w/h non-recurring impact | (13.6) | - | |||
| of w/h financial result impact (IFRIC 19 & Transaction costs) | 35.9 | - | |||
| Profit/loss before tax | (131.6) | (363.5) | (102.6) | ||
| Income tax | 8.8 | 77.2 | 22.4 | ||
| Share of profit/(loss) of associates | - | - | (0.1) | ||
| Net profit/(loss) incl. IFRS 16 | (122.8) | (286.2) | (80.3) |
* Change at constant perimeter: refers to the change between H1 2019 and H1 2021. Constant perimeter includes Fox consolidated in November 2019 & franchisees in Finland and Norway in July 2019.
Variable costs: Revenue related costs, rental related costs, fleet operating costs and others
Average fleet and utilization rate include Urban Mobility. Historical data have been adjusted accordingly
As explained in previous statements and reflected in the revenue table below, the Group 's organization is now structured around 3 Service Lines as to respond to specific mobility use cases and design the appropriate offers and associated customer journey.
On a proforma basis (i.e. at constant perimeter and exchange rates), total revenue increased by +3.6% to €842m in H1 2021 compared to H1 2020 with rental days down -3.7%. This highlights a contrasted picture between the 2 quarters: -36% in Q1 2021 and +88% in Q2 2021 despite no Easter effect. First quarter performance reflected the heavy impact of the travel ban and various lockdown restrictions (vs an extremely solid performance over the first two months of 2020). Second quarter recovered on travel restrictions ease and positive pricing due to the shortage of supply driven by semiconductors, while comparing with very low levels in Q2 2020. Like in Q1 2021, the performance in Q2 2021 came from the rebound of domestic markets, the remarkable growth in the US and the resilience of Vans & Trucks, driven by home delivery / e-commerce and the launch of new service / solutions.
Compared to Q2 2019, volumes and prices caught up month by month in Q2 2021, gradually reducing the gap: -47% in April, -39% in May and -37% in June, leading to a -41% drop overall.
| €m | H1 2021 | H1 2020 | % Change | % Change at constant |
|---|---|---|---|---|
| currency | ||||
| Proximity | 95.5 | 112.9 | -15.5% | -16.0% |
| Professional | 286.2 | 297.5 | -3.8% | -4.3% |
| Leisure | 254.1 | 222.9 | 14.0% | 16.3% |
| CARS | 635.8 | 633.3 | 0.4% | 0.7% |
| VANS & TRUCKS | 172.4 | 145.1 | 18.9% | 18.5% |
| Rental Revenues (incl. Mobility) | 808.2 | 778.4 | 3.8% | 4.1% |
| Other income (incl. franchisee) | 33.7 | 36.4 | -7.3% | -6.7% |
| Total Revenues | 841.9 | 814.8 | 3.3% | 3.6% |
| €m | Q2 2021 | Q2 2020 | % Change | % Change at constant |
|---|---|---|---|---|
| currency | ||||
| Proximity | 56.8 | 39.5 | 43.7% | 42.4% |
| Professional | 156.1 | 109.9 | 42.1% | 40.3% |
| Leisure | 167.1 | 34.8 | 380.7% | 400.4% |
| CARS | 380.0 | 184.2 | 106.3% | 105.8% |
| VANS & TRUCKS | 87.3 | 66.0 | 32.3% | 31.6% |
| Rental Revenues (incl. Mobility) | 467.3 | 250.2 | 86.8% | 86.2% |
| Other income (incl. franchisee) | 18.9 | 7.7 | 145.8% | 145.4% |
| Total Revenues | 486.2 | 257.9 | 88.5% | 88.0% |
CARS: revenue more than doubled to €380m in Q2 2021 compared to Q2 2020, driven by volumes (+59%) and strong price increase (+30%) due to the excess demand on supply as well as a decrease in rental duration. Among the 3 Service Lines, Leisure recorded the strongest growth (a 5-fold revenue increase), driven by the Low-Cost segment.
The analysis below details the performance of CARS by Service Line:
VANS & TRUCKS: the BU performed extremely well, back to 2019 levels: revenue was up +31% to €87m in Q2 2021 compared to the same period last year. The performance was mostly attributable to volume growth driven by Supersites, which perfectly fit Corporate clients' demand and the success from new long-term solutions launches (LTS). Like in previous quarters, the solid performance benefited from home delivery / e-commerce.
MADC (Margin after Direct Costs): a solid performance owing to outstanding fleet management and a flexibilized cost model
MADC increased by 2.7x to €241m in H1 2021 from €90m in H1 2020, resulting in a strong rebound in margin to 28.6% (11.1% in H1 2020), close to profitability recorded in H1 20193 at 33.3%.
3 Proforma basis: at constant perimeter
The Group continued to strongly focus on adapting its fleet holding and variable costs thanks to a more flexibilized cost model based on buy-back programs and long-term relationships with OEMs. The evolution of the fleet size was contrasted in H1 2021 with 2 distinct trends:
This capacity to adjust the fleet adequately allowed the Group to improve drastically its utilization rate to 72.4% in H1 2021 vs 53.9% in H1 2020.
In all, the Group reduced its "direct and variable costs" by -16.7% to €601m versus H1 2020, whilst revenue was up +3.6% during that period. This good performance has been primarily spurred by fleet holding costs (-29% to €238m), tightly managed and benefiting from favorable price conditions for the resale of used-cars. Variable costs, more related to revenue, declined by 3.5% in H1 2021 on revenue up +3.6%.
Fleet financing costs were down -19% to €47m in H1 2021 (vs H1 2020) in line with the change of Group's fleet.
Compared to H1 2019: As part of the cost reduction plan undertook in 2020, the Group recorded an outstanding performance, lowering its fixed and semi-fixed costs by -34% in H1 2021 compared to pre-pandemic levels in H1 2019 (proforma) so as align them to the reduced demand. During that period, revenue was down -42%.
The Group continued to optimize its network and HQs costs through furlough measures, reduction in external spending, pursued renegotiations of rents with network and HQ landlords, station closures up to 25% of the 2019 network (permanent and temporary) or reduced opening hours.
Compared to H1 2020: Fixed and semi-fixed costs were down -11% to €266m in H1 2021 primarily deriving from Network costs (-17%) and to a lower extent by HQs ( -4%) with higher subsidies for furlough in 2020.
And finally compared to Q1 2021, total fixed and semi-fixed costs increased by +5% on revenue up +37% sequentially.
This led the Group to record positive Corporate EBITDA of +€20m in Q2 2021. Hence, losses were reduced to -€25m in H1 2021 vs -€209m at the same period last year.
Financial income and expenses not related to the fleet: net financing costs not related to the fleet decreased by -26% to -€42.3m in H1 2021 from -€57.3m in H1 2020, due to the positive impact of the conversion of the 2024 Bonds and 2026 Bonds into equity, partially offset by new interests on state guaranteed loans incurred in H1 2021 and increased costs of the facilities (TLB and RCF) put in place post-restructuring.
Non-recurring expenses were contained to -€18.5m in H1 2021 (-€20.4m in H1 2020). As part of the continuation of the Reboot plan, initiated in 2020, they primarily reflected adaptation measures in HQs and Network which have been implemented to deliver a fast payback in adapting the cost base to the new size of the company.
Net financial restructuring costs: +€22.3m in H1 2021, recorded in Q1 2021, split into -€13.6m of restructuring fees (accounted in the P&L) and +€35.9m non-cash income (including +€48m booked under IFRIC 19 accounting standards, coming from the difference between the book value of the debt converted into equity instruments and the fair value of these instruments at the transaction date; and -€12m of previous transaction cost write-off).
Pretax losses, as a result of the above, were significantly reduced from -€364m in H1 2020 to -€132m in H1 2021.
Tax: +€9m in H1 2021 versus +€77m in H1 2020, reflecting a cautious approach with lower activation of tax losses carry-forward compared to the same period last year.
Net income: the Group posted a net loss of -€123m in H1 2021 compared to -€286m in the same period last year.
The Group improved significantly its Corporate Operating cash flow in H1 2021 compared to H1 2020 thanks to its positive Corporate EBITDA in Q2 2021 and a strong increase in WC change due to a strong focus on cash collection, more pre-payment from TO brokers and reduced leases expenses linked to stations closures.
Corporate Operating cash flow came in positive territory at +€16m in Q2 2021 after -€100m in Q1 2021.
| All data in €m | H1 2021 | H1 2020 | H1 2019 |
|---|---|---|---|
| Adjusted Corporate EBITDA | (24.8) | (208.6) | 81.8 |
| Lease liability repayment (IFRS 16 Impact) | (43.0) | (53.4) | (50.4) |
| Non-recurring expenses | (18.3) | (21.2) | (25.6) |
| Non-fleet capex | (26.5) | (24.8) | (40.5) |
| Change in NFWC and Provisions | 41.1 | 8.2 | 86.0 |
| Income tax paid | (12.4) | 3.6 | (9.5) |
| Corporate operating free cash flow | (83.8) | (296.3) | 41.9 |
The Group recorded a sound financial position with a Corporate net debt of €266m at the end of June 2021 compared to €93m5 as at December 31st 2020, highlighting a reduction by one third: €67m in Q2 2021 after €106m in Q1 2021.
The Group recorded sound Corporate liquidity of €447m as at 30 June 2021 versus €515m at 31 March 2021.
4 Excluding liabilities related to leases
5 Proforma of the financial restructuring
The Group has been particularly active in H1 2021 in delivering the first steps of its Connect transformation roadmap.
This is a key milestone in the Group's journey towards at scale, fully digitized customer journeys and operations.
The Group remains reasonably optimistic for Q3 2021, with a contrasted picture across countries:
The Group is on track to deploy its Connect plan roadmap through the implementation of new engines of growth (Connected cars, LTS, sustainable fleet) and the unified and strongly integrated IT system.
Caroline Cohen - [email protected]
Valérie Sauteret - [email protected]
Vincent Vevaud - [email protected]
Judith Grandcoing - [email protected] Philomène Emptaz – [email protected]
Europcar Mobility Group is a major player in mobility markets and listed on Euronext Paris. Europcar Mobility Group's purpose is to offer attractive alternatives to vehicle ownership, in a responsible and sustainable manner. With this in mind, the Group offers a wide range of car and van rental services – be it for a few hours, a few days, a week, a month or more – with a fleet that is already "C02 light" and equipped with the latest engines, and which will be increasingly "green" in the years to come (more than 1/3 electric and hybrid vehicles by 2023). Customers' satisfaction is at the heart of the Group's ambition and that of its employees. It also fuels the ongoing development of new offerings in the Group's three service lines - Professional, Leisure and Proximity - which respond to the specific needs and use cases of both businesses and individuals. The Group's 4 major brands are: Europcar® - the European leader of car rental and light commercial vehicle rental, Goldcar® - the low-cost car-rental Leader in Europe, InterRent® – 'mid-tier' car rental and Ubeeqo® – one of the European leaders of round-trip car-sharing (BtoB, BtoC). Europcar Mobility Group delivers its mobility solutions worldwide through an extensive network in over 140 countries (including wholly owned subsidiaries – 18 in Europe, 1 in the USA, 2 in Australia and New Zealand – completed by franchises and partners).
Further details on our website: www.europcar-mobility-group.com
This press release includes forward-looking statements based on current beliefs and expectations about future events. Such forward-looking statements may include projections and estimates and their underlying assumptions, statements regarding plans, objectives, intentions and/or expectations with respect to future financial results, events, operations and services and product development, as well as statements, regarding performance or events. Forward-looking statements are generally identified by the words "expects", "anticipates", "believes", "intends", "estimates", "plans", "projects", "may", "would", "should" or the negative of these terms and similar expressions. Forward looking statements are not guarantees of future performance and are subject to inherent risks, uncertainties and assumptions about Europcar Mobility Group and its subsidiaries and investments, trends in their business, future capital expenditures and acquisitions, developments in respect of contingent liabilities, changes in economic conditions globally or in Europcar Mobility Group's principal markets, competitive conditions in the market and regulatory factors. Those events are uncertain; their outcome may differ from current expectations which may in turn materially affect expected results. Actual results may differ materially from those projected or implied in these forward-looking statements. Any forward-looking statement contained in this press release is made as of the date of this press release. Other than as required by applicable law, Europcar Mobility Group does not undertake to revise or update any forward-looking statements in light of new information or future events. The results and the Group's performance may also be affected by various risks and uncertainties, including without limitation, risks identified in the "Risk factors" of the Universal Registration Document registered by the Autorité des marchés financiers and also available on the Group's website: www.europcar-mobility-group.com. This press release does not contain or constitute an offer or invitation to purchase any securities in France, the United States or any other jurisdiction.
https://investors.europcar-group.com/results-center
www.europcar-mobility-group.com
| All data in €m | Q2 2021 | Q2 2020 | % Change | % Change at constant perimeter and currency |
H1 2021 | H1 2020 | % Change | % Change at constant perimeter and currency |
|---|---|---|---|---|---|---|---|---|
| Total revenue | 486.2 | 257.9 | 88.5% | 88.0% | 841.9 | 814.8 | 3.3% | 3.6% |
| Fleet holding costs | (123.9) | (149.4) | 17.1% | 17.3% | (238.2) | (333.6) | 28.6% | 28.5% |
| Variable costs | (177.9) | (110.8) | -60.6% | -60.7% | (309.5) | (322.3) | 4.0% | 3.5% |
| Sales and marketing expenses | (4.7) | (2.2) | -115.4% | -115.5% | (6.7) | (10.3) | 35.7% | 35.5% |
| Fleet financing costs | (24.0) | (27.6) | 13.2% | 12.8% | (46.6) | (58.1) | 19.9% | 19.3% |
| Direct & variable costs | (330.5) | (290.0) | -14.0% | -13.9% | (600.9) | (724.4) | 17.0% | 16.7% |
| Margin after Direct costs | 155.7 | (32.1) | 241.0 | 90.4 | 166.7% | 164.6% | ||
| In % of revenue | 32.0% | 28.6% | 11.1% | |||||
| Network | (65.4) | (51.5) | -27.0% | -27.5% | (125.3) | (152.9) | 18.0% | 17.4% |
| HQ Costs | (70.7) | (60.9) | -16.0% | -15.9% | (140.5) | (146.2) | 3.9% | 3.7% |
| Fixed & semi-fixed costs | (136.1) | (112.4) | -21.1% | -21.2% | (265.8) | (299.0) | 11.1% | 10.7% |
| Adjusted Corporate EBITDA (IFRS 16) | 19.7 | (144.5) | (24.8) | (208.7) | ||||
| In % of revenue | 4.0% | |||||||
| IFRS 16 impact on premises and parking | (15.7) | (19.5) | (36.7) | (39.8) | ||||
| IFRS 16 impact on the fleet and financing costs & variable costs |
(0.9) | (6.3) | (6.3) | (13.0) | ||||
| Adjusted Corporate EBITDA excl. IFRS-16 | 3.0 | (170.3) | (67.7) | (261.4) | ||||
| Depreciation – excluding vehicle fleet: | (32.7) | (40.0) | 18.2% | 18.6% | (68.4) | (77.1) | 11.3% | 11.8% |
| Non-recurring income and expense | (10.9) | (13.4) | (18.5) | (20.4) | ||||
| Other financing income and expense not related to the fleet | (25.6) | (30.5) | 16.3% | 15.7% | (42.3) | (57.3) | 26.2% | 25.8% |
| Net financial restructuring costs | - | - | 22.3 | - | ||||
| Profit/loss before tax | (49.5) | (228.4) | (131.6) | (363.5) | ||||
| Income tax | 3.4 | 47.2 | 8.8 | 77.2 | ||||
| Share of profit/(loss) of associates | - | - | - | - | ||||
| Net profit/(loss) excl. IFRS 16 | (41.7) | (180.1) | (119.7) | (283.3) | ||||
| Net profit/(loss) incl. IFRS 16 | (46.1) | (181.2) | (122.8) | (286.2) |
* Fleet holding costs do not include the estimated interests included in operating lease. They are disclosed within the fleet financing expenses in the Management Accounts
| In €m | Q2 2021 | Q2 2020 | H1 2021 | H1 2020 |
|---|---|---|---|---|
| After IFRS 16 | After IFRS 16 | After IFRS 16 | After IFRS 16 | |
| Revenue | 486.2 | 257.9 | 841.9 | 814.8 |
| Fleet holding costs | (129.5) | (158.0) | (249.6) | (352.7) |
| Fleet operating, rental and revenue related costs | (177.9) | (110.7) | (309.5) | (322.3) |
| Personnel costs | (95.9) | (72.7) | (184.3) | (204.7) |
| Network and head office overhead costs | (47.0) | (40.9) | (90.0) | (105.4) |
| Non-fleet depreciation, amortization and impairment expense |
(32.6) | (40.0) | (68.3) | (77.1) |
| Other income | 2.1 | (1.0) | 1.9 | 0.7 |
| Current operating income | 5.2 | (165.5) | (58.0) | (246.8) |
| Other non-recurring income and expense | (11.0) | (13.4) | (32.1) | (20.4) |
| Operating income | (5.7) | (178.9) | (90.0) | (267.2) |
| Net fleet financing expenses | (18.3) | (19.0) | (35.2) | (39.0) |
| Net non-fleet financing expenses | (11.3) | (18.1) | (26.6) | (36.3) |
| Net other financial expenses | (14.2) | (12.5) | 20.2 | (21.0) |
| Net financing costs | (43.8) | (49.6) | (41.5) | (96.3) |
| Profit/(loss) before tax | (49.5) | (228.3) | (131.5) | (363.4) |
| Income tax benefit/(expense) | 3.4 | 47.1 | 8.8 | 77.2 |
| Net profit/(loss) for the period | (46.0) | (181.2) | (122.7) | (286.2) |
Appendix 3 – Reconciliation from consolidated accounts to management accounts (including IFRS 16)
| All data in €m | Q2 2021 | Q2 2020 | H1 2021 | H1 2020 |
|---|---|---|---|---|
| Adjusted Consolidated EBITDA | 138.8 | 7.6 | 206.9 | 126.4 |
| Fleet depreciation | (52.2) | (88.4) | (107.9) | (189.0) |
| Fleet depreciation (IFRS16) | (43.0) | (36.1) | (77.2) | (87.9) |
| Total Fleet depreciation | (95.2) | (124.5) | (185.1) | (277.0) |
| Fleet financing expenses | (24.0) | (27.6) | (46.6) | (58.1) |
| Adjusted Corporate EBITDA | 19.7 | (144.5) | (24.8) | (208.7) |
| Amortization, depreciation and impairment expense | (32.7) | (40.0) | (68.4) | (77.1) |
| Reversal of fleet financing expenses | 24.0 | 27.6 | 46.6 | 58.1 |
| Adjusted recurring operating income | 11.0 | (156.9) | (46.6) | (227.6) |
| Impairment expense on non-current assets | - | - | 0.0 | - |
| Interest expense related to fleet operating leases (estimated) | (5.7) | (8.6) | (11.4) | (19.1) |
| Recurring operating income | 5.3 | (165.5) | (58.0) | (246.8) |
IFRS 16 is the standard on leases, with first application on January 1, 2019.
All leases contracts are accounted for in the balance sheet through an asset representing the "Right of Use" of the leased asset along the contract duration, and the corresponding liability, representing the lease payments obligation. Europcar Mobility Group is using the simplified retrospective method, according to which there is no restatement of comparative periods. Main impacts on 30 June 2021 consolidated statements are the following:
| P&L (in €m) | H1 2021 Excl. IFRS 16 |
IFRS 16 Impact | H1 2021 Incl. IFRS 16 |
|---|---|---|---|
| Revenue | 842 | - | 842 |
| Fleet, rental and revenue related costs Personnel Costs Network & HQ Costs D&A and Impairment Other Income |
(566) (184) (127) (28) 2 |
7 - 37 (40) - |
(559) (184) (90) (68) 2 |
| Current operating Income | (61) | 3 | (58) |
| Operating Income | (93) | 3 | (90) |
| Financial result | (35) | (6) | (42) |
| Profit before tax | (129) | (3) | (132) |
| Net income | (120) | (3) | (123) |
| Restatement of Adj Corporate EBITDA (in €m) | H1 2021 Excl. IFRS 16 |
IFRS 16 Impact | H1 2021 Incl. IFRS 16 |
|---|---|---|---|
| Current operating Income D&A and Impairment Net Fleet Financing expenses |
(61) 28 (35) |
3 40 (1) |
(58) 68 (35) |
| Adj Corporate EBITDA calculated | (68) | 43 | (25) |
| Balance sheet in €m | 30 June 2021 |
|---|---|
| Assets : | 372 |
| -Property, Plant & Equipment | 267 |
| - Rental Fleet in balance sheet | 105 |
| Liabilities : | 385 |
| - Liabilities linked to non-fleet leases | 280 |
| - Liabilities linked to fleet leases | 105 |
| In €m | 30 June 2021 | 31 Dec 2020 |
|---|---|---|
| After IFRS 16 | After IFRS 16 | |
| Assets | ||
| Goodwill | 1 002.9 | 998.1 |
| Intangible assets | 1 060.7 | 1 055.8 |
| Property, plant and equipment | 407.8 | 413.2 |
| Other non-current financial assets | 44.8 | 54.1 |
| Deferred tax assets | 157.8 | 176.9 |
| Total non-current assets | 2 674.0 | 2 698.1 |
| Inventory | 21.2 | 16.1 |
| Rental fleet recorded on the balance sheet | 2 843.6 | 2 197.2 |
| Rental fleet and related receivables | 815.9 | 504.0 |
| Trade and other receivables | 384.5 | 382.0 |
| Current financial assets | 22.6 | 23.2 |
| Current tax assets | 55.6 | 29.0 |
| Restricted cash | 106.9 | 82.0 |
| Cash and cash equivalents | 276.8 | 364.6 |
| Total current assets | 4 526.9 | 3 598.2 |
| Total assets | 7 200.9 | 6 296.3 |
| Equity | ||
| Total equity attributable to the owners of Europcar Mobility Group | 1 420.3 | 189.7 |
| Non-controlling interests | 0.5 | 0.5 |
| Total equity | 1 420.8 | 190.3 |
| Liabilities | ||
| Financial liabilities | 1 380.7 | 1 890.6 |
| Non-current liabilities related to leases | 210.2 | 214.6 |
| Non-current financial instruments | 47.6 | 60.1 |
| Employee benefit liabilities | 156.8 | 167.2 |
| Non-current provisions | 8.8 | 10.8 |
| Deferred tax liabilities | 217.6 | 214.8 |
| Other non-current liabilities | 0.2 | 0.1 |
| Total non-current liabilities | 2 021.8 | 2 558.3 |
| Current portion of financial liabilities | 1 748.1 | 2 069.7 |
| Current liabilities related to leases | 174.9 | 139.5 |
| Employee benefits | 2.6 | 2.6 |
| Current provisions | 217.4 | 214.2 |
| Current tax liabilities | 32.2 | 46.1 |
| Rental fleet related payables | 1 021.0 | 555.1 |
| Trade payables and other liabilities | 562.2 | 520.5 |
| Total current liabilities | 3 758.4 | 3 547.8 |
| Total liabilities | 5 780.2 | 6 106.0 |
| Total equity and liabilities | 7 200.9 | 6 296.3 |
| In €m | H1 2021 After IFRS 16 |
H1 2020 After IFRS 16 |
|---|---|---|
| Profit/(loss) before tax | (131.5) | (363.4) |
| Reversal of the following items | ||
| Depreciation and impairment expenses on property, plant and equipment | 50.5 | 61.3 |
| Amortization and impairment expenses on intangible assets | 17.9 | 15.9 |
| Impairment of assets | - | 1.6 |
| Changes in provisions and employee benefits (1) | (5.2) | (13.6) |
| Recognition of share-based payments | 0.2 | (0.6) |
| Profit/(loss) on disposal of assets | 0.2 | 0.0 |
| IFRIC 19 impact (2) | (48.4) | - |
| Other non-cash items | (2.1) | 2.5 |
| Total net interest costs | 70.5 | 78.7 |
| Amortization of transaction costs (3) | 15.7 | 5.2 |
| Net financing costs | 86.2 | 83.9 |
| Net cash from operations before changes in working capital | (32.4) | (212.7) |
| Changes to the rental fleet recorded on the balance sheet (4) | (617.7) | 649.2 |
| Changes in fleet working capital | 152.4 | 28.4 |
| Changes in non-fleet working capital | 36.3 | 22.4 |
| Cash generated from operations | (461.4) | 487.4 |
| Income taxes received/paid | (12.4) | 3.6 |
| Net interest paid | (59.9) | (71.6) |
| - | - | |
| Net cash generated from (used by) operating activities | (533.8) | 419.4 |
| Acquisition of intangible assets and property, plant and equipment (5) | (28.9) | (27.0) |
| Proceeds from disposal of intangible assets and property, plant and equipment | 2.5 | 1.3 |
| Acquisition of subsidiaries, net of cash acquired and other financial investments | 9.7 | 3.2 |
| Net cash used by investing activities | - (16.7) |
- (22.5) |
| Capital increase (net of fees paid) (6) | 246.7 | - |
| (Purchases) / Sales of treasury shares net | 0.9 | 0.9 |
| Change in other borrowings (7) | 257.7 | (445.0) |
| Change in rental debts | (15.6) | (99.2) |
| Payment of transaction costs (8) | (7.1) | (1.6) |
| Net cash generated from (used by) financing activities | 482.7 | (544.8) |
| Cash and cash equivalent at beginning of period | 444.6 | 628.2 |
| Net increase/(decrease) in cash and cash equivalents after effect of foreign exchange differences | (67.8) | (147.9) |
| Changes in scope | - | - |
| Effect of foreign exchange differences | 2.2 | (3.1) |
| Cash and cash equivalents at end of period | 379.1 | 477.2 |
| €million | Maturity | Dec. 31, 2020 Mar. 31, 2021 Jun. 30, 2021 | ||
|---|---|---|---|---|
| High Yield Senior Notes | 2024 | 600 | 0 | 0 |
| High Yield Senior Notes | 2026 | 450 | 0 | 0 |
| State guaranteed Loans | 281 | 280 | 282 | |
| Crédit Suisse Facility | 50 | 0 | 0 | |
| Term Loan B (€500m) & RCF | 2023 | 624 | 500 | 500 |
| FCT Junior Notes, accrued interest not yet due, capitalized financing costs and other |
(204) | (195) | (198) | |
| Gross Corporate debt | 1 801 | 585 | 584 | |
| Short-term Investments and Cash in operating and holding entities | (375) | (386) | (318) | |
| CORPORATE NET DEBT | 1 426 | 199 | 266 |
| €million | Maturity | Dec. 31, 2020 Mar. 31, 2021 Jun. 30, 2021 | ||
|---|---|---|---|---|
| High Yield EC Finance Notes | 2022 | 500 | 500 | 500 |
| New Fleet Financing €225m | 2024 | 0 | 0 | 50 |
| Senior asset revolving facility (€1.7bn SARF) | 2022 | 445 | 414 | 770 |
| FCT Junior Notes, accrued interest, financing capitalized costs and | 243 | 228 | 223 | |
| other | ||||
| UK, Australia and other fleet financing facilities | 969 | 920 | 997 | |
| Gross financial fleet debt | 2 157 | 2 061 | 2 540 | |
| Cash held in fleet financing entities and Short-term fleet investments | (118) | (90) | (98) | |
| Fleet net debt in Balance sheet | 2 039 | 1 971 | 2 442 |
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