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

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.

  • 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.

SAINT-QUENTIN EN YVELINES, France--()--Regulatory News:

Philippe Germond, Chairman of the Management Board of Europcar Groupe (Paris:EUCAR) 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%


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

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


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:

Further details on our website:

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

Appendix 2 – IFRS Income statement

In € thousands   First-quarter 2016   First-quarter 2015
Revenue   417,554   413,726
Fleet holding costs (115,450) (117,551)
Fleet operating, rental and revenue related costs (155,336)


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
Recurring operating income   1,791   3,551
Goodwill impairment expense - -
Other non-recurring income 9,149 24,600
Other non-recurring expense   (4,411)   (57,268)
Operating income   6,529   (29,117)
Gross financing costs (21,849) (34,547)
Other financial expenses (5,865) (13,530)
Other financial income 413 4,631
Net financing costs (27,301) (43,446)
Profit/(loss) before tax   (20,772)   (72,563)
Income tax benefit/(expense) 3,651 5,044
Share of profit/(loss) in companies

accounted for under the equity method

  (3,016)   (1,937)
Net profit/(loss) for the period   (20,137)   (69,456)
Attributable to:
Owners of ECG (19,972) (69,454)
Non-controlling interests (165) (2)
Basic loss per share

attributable to owners of ECG (in €)


Diluted loss per share

attributable to owners of ECG (in €)



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

Appendix 4 – Balance sheet

In € thousands   Au 31 Mars 2016   As at Dec. 31, 2015
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
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
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 834,830 662,722
Trade payables and other liabilities 448,721 424,974
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 2016   Full-year 2015   First-quarter 2015
Profit/(loss) before tax   (20,772)   (6,047)   (72,563)
Depreciation and impairment charge on property, plant and equipment 3,736 15,277 3,430
Amortization and impairment charge on intangible assets 4,357 17,893 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


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 130,219 34,869 244,213
Changes in non-fleet working capital 30,040   (57,243)   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 38 (107)
Acquisition of intangible assets and property, plant and equipment (6,558) (29,172) (8,161)
Proceeds from disposal of intangible assets and property, plant and equipment 592 5,384 2,727
Acquisition/disposal of financial assets 259 (7,563)
Acquisition of subsidiaries, net of cash acquired (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 (108,580) 123,310 (73,527)
Payment of transaction costs (19,820)
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 foreign exchange differences (29,585) 22,018 12,244
Effect of foreign exchange differences (415) 1,033 2,256
Cash and cash equivalents at end of period   199,368   229,368   220,817

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
€million Pricing Maturity March 31, 2016 Dec. 31, 2015
IN Balance Sheet High Yield EC Finance Notes (a) 5.125% 2021 350 350
Senior asset revolving facility (€1.1bn SARF) (c) E+170bps 2019 584 658
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 (
(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).


Europcar / Press relations
Nathalie Poujol, +33 1 30 44 98 82
Europcar / Investor relations
Aurélia Cheval, +33 1 30 44 98 98
Havas Paris
Jean-Baptiste Froville, +33 1 58 47 95 39


Europcar / Press relations
Nathalie Poujol, +33 1 30 44 98 82
Europcar / Investor relations
Aurélia Cheval, +33 1 30 44 98 98
Havas Paris
Jean-Baptiste Froville, +33 1 58 47 95 39