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Business Severely Hit by Covid-19 Outbreak, yet Good Resilience in Domestic and V&T Activities
Aggressive Cost Adaptation and Cash Preservation Measures:
€1bn Savings in 2020 & Strong Cash Burn Reduction in H2 2020
Financial Restructuring Rolled out in Record Time, Enabling Connect Strategic Plan to Drive Sustainable & Profitable Growth
Europcar Mobility Group (Paris: EUCAR) :
Q4 2020 AND FY 2020 HIGHLIGHTS1
Full year 2020:
- Adj. Corporate EBITDA (IFRS 16): -€172m (vs +€389m in 2019) on revenue down2 -45% to €1,761m
- Aggressive cost measures adaptation3, well above initial budget of €850m: ~€1bn cost savings in 2020, i.e. more than 30% reduction on the cost base versus pre Covid-19 scenario
- Group net income of -€645m, including -€249m non-recurring items and assets impairment
- Strong reduction in cash burn in H2 2020 to €175m in H2 2020 versus €371m in H1 2020
- Proforma Corporate Net Debt at €93m post-financial restructuring as at December 31th, 2020 (€1,426m reported) and €587m proforma liquidity
Fourth quarter 2020:
- Q4 2020 results impacted by the second wave of Covid-19, reflected in travel restrictions but good resilience in domestic business and Vans & Trucks
On a proforma basis2, Group revenue down -42.5% to €409m in Q4 2020 vs Q4 2019, leading to Corporate EBITDA at -€18m
- Q4 2020: strong active fleet reduction of -39% YoY to 180,000 vehicles in December 2020 – allowing the Group to record a good utilization rate of 70.0% on average in Q4 2020 (vs. 72.0% in Q4 2019), demonstrating the Group’s flexible model
- A cautious view on H1 2021 given still limited visibility on the timing of the demand recovery and reduced lead time for customer booking
- For 2021, the Group anticipates revenue growth relying on key business drivers: domestic, Vans & Trucks, Professional and Proximity customers
- The combination of the rollout of Connect and a reduced cost base will allow the Group to quickly return to profitability in a context of market recovery
- In line with prior statements, the financial restructuring enables the group to benefit from strong liquidity to support its recovery and the implementation of the Connect, the Group’s strategic plan, reshaping it around customers’ needs and expectations
- First deliveries of “Connect” in 2021 with 4 enabling pillars: fleet / network / IT / organization
CAPITAL STRUCTURE FULLY RESHAPED FOLLOWING ITS FINANCIAL RESTRUCTURING
The Group has reshaped its capital structure and reduced its indebtedness in a record time through €1.1bn corporate debt equitization and €255m new money equity4 injection in on 26 February 2021. Post financial restructuring, gross corporate debt amounts to €905m (vs €2,005m reported) and proforma net corporate debt amounts to €93m (vs €1,426m reported). In addition, a €225m facility has been put in place to support Fleet Financing.
Caroline Parot, CEO of Europcar Mobility Group, declared:
“Due to the Covid-19 successive waves, 2020 has been a very challenging year for all players in the Travel & Leisure industry.
Our 2020 FY revenue was down -45% vs 2019, due to travel bans and lockdowns, combined with a “self-restriction” trend among customers concerned with their safety. All this strongly impacted the level of activity of our Cars and Low-Cost BUs all year long, as reflected in our results. Yet local markets showed good resilience, supported by domestic demand, and our Vans & Trucks & Urban Mobility BUs performed well.
Thanks to the financial restructuring combined with a sharp cost adaptation plan, the Group benefits from a much lower cost base and a strong liquidity. With strong adaptability and reactivity, our teams are now…
Read More:Europcar Mobility Group: 2020 Results