Europcar Mobility Group — Earnings Release 2016

May 9, 2016

Note: This press release contains unaudited consolidated financial figures established under IFRS by Europcar Groupe's Management Board and reviewed by the Supervisory Board on May 4, 2016.

Europcar Group announces a sound performance for its 2016 First Quarter Results

• Continuing growth in rental revenues at +3%¹ .
• Adjusted Corporate EBITDA at €4.7 million reflects investments for the Group future growth.
• Group on track to deliver 2016 guidance.

Philippe Germond, Chairman of the Management Board of Europcar Groupe commented:

"Europcar has achieved sound performance over this first quarter. We keep up the deployment of the second phase of our transformation program, Fast Lane, focusing on commercial initiatives and on our customer journey. Our low cost brand, InterRent, recorded very good results over the quarter with a growth of 90%² of the rental revenue, especially in our Southern European countries, strengthening our ambition on this growing market. Furthermore, we have reached a new step in our customer strategy with the choice of a CRM solution aiming at offering a high quality mobility experience in order to create brand preference. The recent signing of partnerships with Air Caraïbes and Gulf Air's FalconFlyer Loyalty Program, allow the Group to develop its customer portfolio while enhancing its brand awareness. All these initiatives reflect our investments for future growth and make us very confident on the delivering of our 2016 guidance. Finally, I would like to highlight again our strong commitment to create more value for our shareholders through acquisitions and the development of new mobility services.

In € million, except if mentioned	Q1 2016	Q1 2015	Change	Change at constant exchange rate
Number of rental days (millions)	11.8	11.4	3.5%	Na
Average fleet (thousands)	177.3	172.4	2.9%	Na
Revenues	418	414	0.9%	2.3%3
Adjusted Corporate EBITDA	-4.7	-3.7	-28.2%	-21.3%
Adjusted Corporate EBITDA margin	-1.1%	-0.9%
Last Twelve Months Adjusted Corporate EBITDA	250	219	13.8%
Last Twelve Months Adjusted Corporate EBITDA Margin	11.6%	10.9%
Operating income	7	-29
Net profit/loss	-20	-69
Corporate net debt at the end of the period	247

² Constant Currency

¹ Constant Currency

³ Without petrol impact, total revenues would have evolved of 2.8% at constant exchange rate.

Revenues

Total revenue amounted to €418 million compared to €414 million in Q1 2015, representing an increase of +2.3% at constant currency. Without petrol impact, total revenues would have evolved of 2.8% at constant exchange rate. This is the 8th quarter in a row of growth for the Group. This increase is driven by a +3% at constant exchange rate growth in vehicle rental activities. This trend reflects the success of the sales initiatives launched within the Fast Lane transformation program. The leisure segment showed a positive evolution over Q1 on both Europcar® and InterRent® brands, while the corporate segment was boosted by the SME program.

Rental days volume increased by 3.5% compared to Q1 2015, at 11.8 million with a good increase notably in the Southern countries and in Australia and New Zealand. Compared to the first quarter 2015, the trend was less favourable on the corporate side, notably in Belgium due to the terrorist attacks and in the United Kingdom, in particular for the car replacement activities.

InterRent brand Revenue Per Day is growing at +6.9% at constant currency, while Europcar brand RPD is up by +0.7%, thanks to balanced volume growth and ancillary sales. On a consolidated basis, Revenue Per Day (RPD) is almost flat at -0.4% at constant currency, reflecting mainly the mix evolution of the 2 brands.

Adjusted Corporate EBITDA

Adjusted Corporate EBITDA reached at - €4.7 million versus - €3.7 million in Q1 2015, in a quarter which is traditionally a small one for Europcar business. Adjusted corporate EBITDA in Q1 2016 reflects the continuing increase in revenues, the well managed fixed and variable cost bases, and the decrease in fleet financing interest expenses following past 2 years refinancing initiatives. In addition, as part its strategy, the Group pursued its investments to sustain future growth, notably with the deployment of InterRent brand and network, investments in CRM, IT and Europcar Lab, the new mobility services incubator.

Operating income

Operating income came in at €7 million, compared to - €29 million in Q1 2015. Last year quarter included non-recurring items which were notably the net negative impact of certain proceedings and reorganization charges linked to Fast Lane transformation plan roll out.

Net Profit/Loss

Net profit/loss presented a loss of €20 million in the first quarter of 2016, compared to a loss of €69 million in the first quarter of 2015. This improvement reflects notably the benefit of the reshape of the capital structure following the IPO at the end of Q2 2015. In addition, 2015 first quarter was impacted by non-recurring items.

Corporate Net Debt

Corporate net debt amounted to €247 million as of March 31, 2016 (vs. €235 million as of December 31, 2015). The corporate net debt leverage at 1x⁴ provides the Group with the headroom to roll out its ambitious acquisition plan in order to increase value creation for its shareholders.

⁴ 1x Adjusted Corporate EBITDA

About Europcar Group

Europcar shares (EUCAR) are listed on the Euronext Paris stock exchange. Europcar is the European leader in vehicle rental service and is also a major player in mobility markets. Active in more than 140 countries, Europcar serves customers through an extensive vehicle rental network comprised of its wholly-owned subsidiaries as well as sites operated by franchisees and partners. In addition to the Europcar® brand, the company offers low-cost vehicle rentals under the InterRent® brand. A commitment to customer satisfaction drives the company and its 6,000 people forward and provides the impetus for continuous development of new services. The Europcar Lab was created to respond to tomorrow's mobility challenges through innovation and strategic investments, such as Ubeeqo and E-Car Club.

Forward-looking statements

This press release includes forward-looking statements based on current beliefs and expectations about future events. Such forward looking statements are not guarantees of future performance and the announced objectives are subject to inherent risks, uncertainties and assumptions about Europcar Groupe 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 Groupe'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 affect announced objectives. 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. Europcar Groupe undertakes no obligation to publicly 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 identified in the "Risk factors" of the Registration Document registered by the Autorité des marchés financiers (the "AMF") May 20, 2015 under the number I.15-041 and its update filed with the AMF on June 12, 2015 and also available on the Group's website: www.europcar-group.com

Further details on our website: finance.europcar-group.com

Contacts

Europcar / Press relations

Nathalie Poujol +33 1 30 44 98 82 europcarpressoffice@europcar.com

Europcar / Investor relations

Aurélia Cheval +33 1 30 44 98 98 Investor.relations@europcar.com

Havas Paris

Jean-Baptiste Froville +33 1 58 47 95 39 jean-baptiste.froville@havasww.com

Appendix 1 – Management Profit and Loss

All data in €m	Q1 2016	Q1 2015
Total revenue	417.6	413.7
Fleet holding costs, excluding estimated interest included in operating leases	-104.9	-106.0
Fleet operating, rental and revenue related costs	-155.3	-151.1
Personnel costs	-83.2	-80.9
Network and head office overhead	-53.5	-53.3
Other income and expense	-0.1	0.7
Personnel costs, network and head office overhead, IT and other	-136.7	-133.5
Net fleet financing expense	-14.7	-15.3
Estimated interest included in operating leases	-10.6	-11.6
Fleet financing expenses, including estimated interest included in operating leases	-25.3	-26.9
Adjusted Corporate EBITDA	-4.7	-3.7
Margin	-1.1%	-0.9%
Depreciation – excluding vehicle fleet	-8.2	-8.0
Other operating income and expenses	4.7	-32.7
Other financing income and expense not related to the fleet	-12.6	-28.2
Profit/loss before tax	-20.8	-72.5
Income tax	3.7	5.0
Share of profit/(loss) of associates	-3.0	-1.9
Net profit/(loss)	-20.1	-69.5

Saint-Quentin en Yvelines, May 9th, 2016

Appendix 2 – IFRS Income statement

In € thousands quarter quarter 2016 2015 413,726 Revenue 417,554 (117,551) Fleet holding costs (115,450) Fleet operating, rental and revenue related costs (155,336) (151,091) Personnel costs (83,172) (80,932) Network and head office overhead costs (53,458) (53,258) Depreciation, amortization and impairment expense (8,207) (8,017) Other income (140) 674 3,551 Recurring operating income 1,791 - Goodwill impairment expense - 9,149 24,600 Other non-recurring income (4,411) (57,268) Other non-recurring expense 6,529 (29,117) Operating income (34,547) Gross financing costs (21,849) (13,530) Other financial expenses (5,865) 4,631 Other financial income 413 (43,446) Net financing costs (27,301) (72,563) Profit/(loss) before tax (20,772) 3,651 5,044 Income tax benefit/(expense) Share of profit/(loss) in companies (3,016) accounted for under the equity method (1,937) (20,137) (69,456) Net profit/(loss) for the period Attributable to: (69,454) Owners of ECG (19,972) (2) Non-controlling interests (165) Basic loss per share (0,139) attributable to owners of ECG (in €) (0.669)	First	First
Diluted loss per share (0,139) attributable to owners of ECG (in €) (0.669)

Appendix 3 – Reconciliation

All data in €m	Q1 2016	Q1 2015
Adjusted Consolidated EBITDA	103.3	107.4
Fleet depreciation IFRS	-41.2	-40.9
Fleet depreciation included in operating lease rents	-41.5	-43.4
Total Fleet depreciation	-82.7	-84.3
Interest expense related to fleet operating leases (estimated)	-10.6	-11.6
Net fleet financing expenses	-14.7	-15.3
Total Fleet financing	-25.3	-26.9
Adjusted Corporate EBITDA	-4.7	-3.7
Amortization, depreciation and impairment expense	-8.2	-8.0
Reversal of Net fleet financing expenses	14.7	15.3
Reversal of Interest expense related to fleet operating leases (estimated)	10.6	11.6
Adjusted recurring operating income	12.4	15.1
Interest expense related to fleet operating leases (estimated)	-10.6	-11.6
Recurring operating income	1.8	3.5

Saint-Quentin en Yvelines, May 9th, 2016

Appendix 4 – Balance sheet

In € thousands	Au 31 Mars 2016	As at Dec. 31, 2015
Assets
Goodwill	452,782	457,072
Intangible assets	714,200	713,136
Property, plant and equipment	84,306	89,236
Equity-accounted investments	19,019	22,035
Other non-current financial assets	54,239	57,062
Deferred tax assets	61,141	55,730
Total non-current assets	1,385,687	1,394,271
Inventories	14,807	15,092
Rental fleet recorded on the balance sheet	1,670,642	1,664,930
Rental fleet and related receivables	619,283	574,652
Trade and other receivables	349,482	357,200
Current financial assets	39,681	37,523
Current tax assets	37,689	33,441
Restricted cash	80,834	97,366
Cash and cash equivalents	134,329	146,075
Total current assets	2,947,047	2,926,280
Total assets	4,332,734	4,320,551
Equity
Share capital	143,326	143,155
Share premium	767,231	767,402
Reserves	(96,835)	(74,341)
Retained earnings (losses)	(300,139)	(274,821)
Total equity attributable to the owners of ECG	513,583	561,395
Non-controlling interests	760	962
Total equity	514,342	562,356
Liabilities
Financial liabilities	803,327	801,183
Non-current financial instruments	61,484	52,090
Employee benefit liabilities	128,043	119,295
Non-current provisions	24,225	25,168
Deferred tax liabilities	130,153	131,132
Other non-current liabilities	291	306
Total non-current liabilities	1,147,523	1,129,174
Current portion of financial liabilities	1,132,929	1,263,783
Employee benefits	2,944	2,944
Current tax liabilities	26,040	24,511
Rental fleet related payables Trade payables and other liabilities	834,830 448,721	662,722 424,974
Current provisions	225,430	250,087
Total current liabilities	2,670,894	2,629,021
Total liabilities	3,818,417	3,758,195
Total equity and liabilities	4,332,734	4,320,551

Appendix 5 – IFRS Cash Flow

In € thousands	First-quarter	Full-year	First-quarter
	2016	2015	2015
Profit/(loss) before tax	(20,772)	(6,047)	(72,563)
Depreciation and impairment charge on property, plant and equipment Amortization and impairment charge on intangible assets	3,736 4,357	15,277 17,893	3,430 4,530
Impairment charge on goodwill
Changes in provisions and employee benefits	(20,473)	999	14,079
Recognition of share-based payments Costs related to the IPO	1,225	2,624 8,692
Profit/(loss) on disposal of assets	146	(394)	(16)
Total net interest costs	23,263	127,303	37,008
Redemption premium		56,010	56,010
Amortization of transaction costs		42,340	42,340
Amortization of bond issue premiums Other non-cash items		1,465	3,348
Financing costs	23,263	227,118	45,271
Net cash from operation before changes in working capital	(8,518)	266,162	(5,269)
Changes to the rental fleet recorded on the balance sheet	(46,047)	(232,851)	(123,015)
Changes in fleet working capital Changes in non-fleet working capital	130,219 30,040	34,869 (57,243)	244,213 1,014
Cash generated from operations	114,212	10,937	122,212
Income taxes received/paid	(1,426)	(39,669)	(5,365)
Net interest paid	(19,604)	(137,334)	(20,266)
Net cash generated from (used by) operating activities	84,664	(166,066)	91,312
Other investments and loans Acquisition of intangible assets and property, plant and equipment	38 (6,558)	(29,172)	(107) (8,161)
Proceeds from disposal of intangible assets and property, plant and equipment	592	5,384	2,727
Acquisition/disposal of financial assets Acquisition of subsidiaries, net of cash acquired	259	(7,563) (23,872)
Disposal of subsidiaries, net of cash sold		-
Dividends received from associates		-
Net cash used by investing activities	(5,669)	(55,223)	(5,541)
Capital increase (net of related expenses)		448,203
Issuance of bonds		471,623
Redemption of bonds		(780,010)
Change in other borrowings Payment of transaction costs	(108,580)	123,310 (19,820)	(73,527)
Net cash generated from (used by) financing activities	(108,580)	243,306	(73,527)
Cash and cash equivalent at beginning of period	229,368	206,317	206,317
Net increase/(decrease) in cash and cash equivalents after effect of	(29,585)	22,018	12,244
foreign exchange differences Effect of foreign exchange differences	(415)	1,033	2,256
Cash and cash equivalents at end of period	199,368	229,368	220,817

Saint-Quentin en Yvelines, May 9th, 2016

Appendix 6 - Debt

€million	Pricing	Maturity	March 31, 2016	Dec. 31, 2015
High Yield Senior Notes (a)	5.75%	2022	475	475
Senior Revolving Facility (€350m)	E+250bps (b)	2020	120	81
FCT Junior Notes, accrued interest not yet due, capitalized financing costs and other			-163	-150
Gross Corporate debt			432	406
Short-term Investments and Cash in operating and holding entities			-185	-171
CORPORATE NET DEBT		(A)	247	235

	€million	Pricing	Maturity	March 31, 2016	Dec. 31, 2015
	High Yield EC Finance Notes (a)	5.125%	2021	350	350
	Senior asset revolving facility (€1.1bn SARF) (c)	E+170bps	2019	584	658
IN Balance Sheet	FCT Junior Notes, accrued interest, financing capitalized costs and other			161	142
	UK, Australia and other fleet financing facilities		(d)	409	509
	Gross financial fleet debt			1,504	1,659
	Cash held in fleet financing entities and Short-term fleet investments			-118	-161
	Fleet net debt in Balance sheet			1,386	1,498
OFF BS	Debt equivalent of fleet operating leases - OFF Balance Sheet (e)			1,389	1,323
	TOTAL FLEET NET DEBT (incl. op leases)		(B)	2,775	2,821
	TOTAL NET DEBT		(A)+(B)	3,022	3,057

(a) These bonds are listed on the Luxembourg Stock Exchange. The corresponding prospectus is available on Luxembourg Stock Exchange website (http://www.bourse.lu/Accueil.jsp)

(b) Depending on the leverage ratio

(c) Swap instruments covering the SARF structure have been extended to 2019

(d) UK fleet financing maturing in 2017 with a two-year extension option

(e) Corresponds to the net book value of applicable vehicles, which is calculated on the basis of the purchase price and depreciation rates of corresponding vehicles (based on contracts with manufacturers).