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
Regulatory News:
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
2021 OUTLOOK
- 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 executing our "Connect" transformation plan.
This plan recognizes the changes in customers' needs and expectations. It will help us accelerate our transformation and reshape our services, with the ambition to be a leader in flexible, sustainable, connected and digital mobility solutions.
Regarding 2021, although vaccination campaigns are being rolled out, our views remain cautious. Nevertheless, I am confident that we will rebound strongly as soon as the sanitary market conditions improve, as demonstrated by our US business."
Europcar Mobility Group invites you to its FY 2020 Results Conference Call on:
Wednesday, April 7th, at 6:00pm 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: +1 929-477-0324
Confirmation Code: 8160286
Webcast: https://globalmeet.webcasts.com/starthere.jsp?ei=1435149&tp_key=802d98181a
Slides related to the FY 2020 results are available on the Group's website, in the "Financial documentation" section:
https://investors.europcar-group.com/results-center
FY 2020 financial results
| All data in €m, except if mentioned | 12M 2020 | 12M 2019 | % Change | % Change at
|
| Number of rental days (million) | 56.4 | 91.0 | -38.0% | -41.2% |
| Average Fleet (thousand) | 247.7 | 328.0 | -24.5% | -28.3% |
| Financial Utilization rate | 62.2% | 76.0% |
|
|
| Total revenues | 1 760.9 | 3 022.4 | -41.7% | -45.2% |
| Adjusted Corporate EBITDA (IFRS 16) | (172.0) | 388.7 | ||
| Adjusted Corporate EBITDA Margin |
| 12.9% |
|
|
| ||||
| Operating Income | (500.4) | 246.8 | ||
| Net profit/loss | (644.8) | 29.6 | ||
| Corporate Free Cash Flow | (418.7) | 118.2 | ||
| Corporate Net Debt at end of the period | 1 426.2 | 880.0 |
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 2019 for the calculation of the "% change at constant perimeter and currency".
Management Account presentation:
2019 and 2020 figures include Urban Mobility Corporate EBITDA performance
2019 and 2020 accounts are presented under IFRS 16, unless explicitly mentioned
Q4 2020 financial results
| All data in €m, except if mentioned | Q4 2020 | Q4 2019 | % Change | % Change at
|
| Number of rental days (million) | 13.4 | 21.5 | -37.5% | -38.8% |
| Average Fleet (thousand) | 208.8 | 325.1 | -35.8% | -36.9% |
| Financial Utilization rate | 70.0% | 72.0% |
|
|
| Total revenues | 409.0 | 707.7 | -42.2% | -42.5% |
| Adjusted Corporate EBITDA (IFRS 16) | (17.8) | 59.5 | ||
| Adjusted Corporate EBITDA Margin |
| 8.4% |
|
|
| ||||
| Operating Income | (252.1) | 21.7 | ||
| Net profit/loss | (348.9) | (30.5) | ||
| Corporate Free Cash Flow | (76.3) | 9.1 | ||
| Corporate Net Debt at end of the period | 1 426.2 | 880.0 |
PROFIT LOSS FY 2020
As part of the Travel Leisure industry, the Group was abruptly impacted by the Covid-19 pandemic as a result of the containment measures, border closures decided by most countries in the world. This particularly impacted the activity at airports for international customers while domestic markets showed robust resilience.
Europcar Mobility Group reacted swiftly to this unprecedented situation, by implementing a major operational ("Reboot" program) and financial plan to mitigate the impact of the crisis as well as high safety standards for its customers and employees. As early as March 2020, the Group adapted and evolved its operating model to be more flexible and provide the most adapted offer to its customers in order to ensure the business can thrive. The ability to flex costs and reduce costs while focusing on operational execution allowed the Group to record cost reduction in excess of €1bn in reference to the €3bn initial cost base planned for 2020 or 30% reduction compared to 2019, well above its initial €850m target.
Revenue and Profit Loss are analyzed through the evolution 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 on a proforma basis for 2019.
| All data in €m | 12M 2020 | 12M 2019 | % Change | % Change at
|
| Total revenue | 1 760.9 | 3 022.4 | -41.7% | -45.2% |
| Average fleet size ('000) | 247.7 | 328.0 | -24.5% | -28.3% |
| Rental days volume (in Million) | 56.4 | 91.0 | -38.0% | -41.2% |
| Utilization rate | 62.2% | 76.0% | ||
| Fleet holding costs | (594.1) | (755.8) | 21.4% | 27.3% |
| Fleet operating and variable costs | (653.4) | (1 006.5) | 35.1% | 39.8% |
| Total fleet costs variable costs | (1 247.5) | (1 762.3) | 29.2% | 34.4% |
| Margin after variable costs | 513.5 | 1 260.1 | -59.3% | -60.9% |
| In of revenue | 29.2% | 41.7% | (12.5)pt | (11.7)pt |
|
| |||
| Sales and marketing expenses | (14.7) | (32.6) | 54.8% | 56.9% |
| Fleet financing costs | (111.8) | (120.2) | 7.0% | 16.8% |
| Margin after Direct costs | 387.0 | 1 107.3 | -65.1% | -66.2% |
| In of revenue | 22.0% | 36.6% | (14.7)pt | (13.6)pt |
|
| |||
| Network | (288.0) | (399.3) | 27.9% | 34.5% |
| HQ Costs | (270.9) | (319.3) | 15.1% | 19.5% |
| Adjusted Corporate EBITDA (IFRS 16) | (172.0) | 388.7 | ||
| In of revenue |
| 12.9% |
|
|
|
| |||
| IFRS 16 impact on premises and parking | (79.2) | (74.1) | ||
| IFRS 16 impact on the fleet and financing costs variable costs | (25.0) | (36.3) | ||
| Adjusted Corporate EBITDA excl. IFRS-16 | (276.2) | 278.3 |
|
|
| Margin |
| 9.2% |
|
|
| Depreciation excluding vehicle fleet: | (153.4) | (150.9) | -1.6% | -0.4% |
| Impairment expense on non-current assets | (132.6) | (0.6) | ||
| Non-recurring income and expense | (115.5) | (58.2) | ||
| Other financing income and expense not related to the fleet | (112.2) | (116.4) | 3.6% | 7.0% |
| Profit/loss before tax | (685.6) | 62.5 |
|
|
| Income tax | 40.9 | (32.9) | ||
| Share of profit/(loss) of associates | ||||
| Net profit/(loss) excl. IFRS 16 | (642.3) | 38.0 |
|
|
| Net profit/(loss) incl. IFRS 16 | (644.8) | 29.6 |
|
|
MADC: Margin after Direct costs: MAVC Sales Marketing fleet financing costs
1. Revenue in Q4 2020 and FY 2020
Revenue in Q4 2020
On a reported basis, total revenue decreased by -42% to €409m in Q4 2020 and by -43% at constant perimeter and exchange rates (i.e. proforma basis). The performance was impacted by the second wave of Covid-19 with another strong decrease in international demand. Yet, the Group recorded a good resilience in its domestic markets and segments.
| All data in €m | Q4 2020 | Q4 2019 | % Change | % Change at constant
|
| BU Cars | 230.2 | 488.2 | -52.8% | -52.0% |
| BU Vans Trucks | 94.8 | 102.0 | -7.1% | -6.3% |
| BU Low Cost | 69.1 | 94.1 | -26.6% | -35.7% |
| BU Urban Mobility | 9.7 | 14.0 | -30.9% | -28.5% |
| BU International Coverage | 5.3 | 9.3 | -43.4% | -43.4% |
| TOTAL REVENUE | 409.0 | 707.7 | -42.2% | -42.5% |
Cars and to a lower extent Low Cost BU (Business Unit) were the most impacted given their exposure to the Leisure segment. This was attributable to the international travel flow which continued to suffer from restrictive measures of movements re-imposed by many countries.
Conversely, the Group also reported a good resilience in its domestic markets and Vans Trucks BU. The latter was down -6% on a proforma basis to €95m over the quarter, with positive growth in some countries (UK, Germany, Italy, Denmark and Australia). Demand was solid in home delivery e-commerce with a peak during Christmas period, in long-term solutions (LTS) and mid-term contracts for SMEs.
Urban Mobility services (round-trip car sharing), recorded a good performance overall in the context of the pandemic, driven by longer durations and positive pricing in car sharing, thus confirming the shift of urban customers towards alternatives to vehicle ownership.
Revenue in 2020
On a reported basis, total revenue decreased by -42% to €1,761m in 2020 and -45% at constant perimeter and exchange rates (i.e. proforma basis), resulting from the Covid-19 pandemic.
After a solid performance over the first 2 months of the year (+3.6% revenue growth), the Group recorded a -10% decline in proforma revenue in Q1 2020, -69% in Q2 2020, -50% in Q3 2020 and -43% in Q4 2020. For the full year 2020, airport revenue was down -63% versus -29% for off-airport revenue.
| All data in €m | 12M 2020 | 12M 2019 | % Change | % Change at constant
|
| BU Cars | 1 087.9 | 2 157.4 | -49.6% | -49.7% |
| BU Vans Trucks | 323.1 | 365.7 | -11.7% | -12.1% |
| BU Low Cost | 284.4 | 410.6 | -30.7% | -52.1% |
| BU Urban Mobility | 41.7 | 49.0 | -14.8% | -13.9% |
| BU International Coverage | 23.9 | 39.7 | -40.0% | -40.0% |
| TOTAL REVENUE | 1 760.9 | 3 022.4 | -41.7% | -45.2% |
BU Cars: a performance strongly impacted overall by the severe drop of the international flow. Corporate business was less impacted than the Leisure segment, driven by mid long-term duration. On the Leisure side, the demand shifted to Domestic customers.
BU Low Cost: revenues were heavily impacted by the airlines traffic drop on continued restriction movement measures.
BU Vans Trucks performed well thanks to a strong focus on buoyant mid-term contracts for SME benefiting from a solid demand for home delivery e-commerce bolstered. The Group has successfully captured market growth by addressing and expanding its service offering.
BU Urban Mobility: showed a good resilience coming from Car sharing.
2. From MAVC to Adjusted Corporate EBITDA in FY 2020
MAVC (Margin after Variable Costs)
The Group acted quickly to tackle its variable costs by returning renegotiating with OEMs massively its fleet to the reduced demand thanks to its flexible model of buy-back programs and long-term relationships with OEMs. Compared to the same period of last year, the fleet dropped by -29% on average in 2020 (excl. Fox) to ~226,000 vehicles, reflecting a stable fleet in Q1 2020, -30% in Q2 2020, -43% in Q3 and -39% in Q4 2020.
This strategy led the Group to record a strong improvement in its utilization rate5 since the trough in Q2 2020: 40.8% in Q2 2020 (77.1% in Q2 2019), 72.5% in Q3 2020 (80.0% in Q3 2019) and 70.0% in Q4 2020 (72.0% in Q4 2019). For the full year, the rate stood well below last year (respectively 62.2% in 2020 versus 76.0% in 2019), while fleet holding costs reduced by -27% to €594m.
Europcar Mobility Group well controlled and managed its variable costs, highlighting the flexibility of the business model despite the sharp decrease in volume: fleet operating variable costs were down -40% to €653m while sales related costs in particular, in line with the drop in revenue.
Overall, total fleet costs and other operating variable costs were down -34% in 2020 to €1,248m.
Margin after variable costs declined by -61% to €513.5m in 2020 from €1,260m in 2019 with a strong improvement in Q4 (35% margin in Q4 vs 29% for FY) translating these adjustments in the cost base.
MADC (Margin after Direct Costs)
The Group introduced in 2020 a new performance indicator the Margin after Direct Costs, to capture all variable costs including Fleet Financing costs and Sales Marketing costs.
MADC reached €387m in 2020 vs €1 107m in 2019 with an improved margin on revenue at 27.6% in Q4 2020 versus 22.0% for the FY2020, highlighting the positive impact of all adaptation measures taken by the group after the start of the crisis.
Thanks to all the cost cutting measures on variable costs, a €792m6 cost reduction has been achieved.
Adjusted Corporate EBITDA
On top of the cost reduction on the fleet and operating variable costs, the group cut its network and HQ costs by €213m6. This reduction in semi-fixed and fixed costs was achieved thanks to partial unemployment in all countries, closure of up to 88% of stations in Q2 2020, pursued negotiations with network and HQ landlords and overall drastic reduction or deferral of all non-essential expenses. This is reinforced by the first benefits of the restructuring measures taken on the network and HQ to adapt the costs to the reduced revenues.
Based on the initial cost base planned pre-pandemic, the Group generated a €1,005m7 cost reduction in 2020, removing €736m over the first 9 months 2020 and €269m in Q4 2020.
The Group recorded an adj. Corporate EBITDA of -€172m in 2020 (€389m in 2019).
3. From Adjusted Corporate EBITDA to Group net income
Financial results: net financing costs not related to the fleet decreased to -€112m in 2020 from -€116m in 2019, due to the positive impact of 2019 Corporate Bond refinancing offset by non-cash derivatives costs and increased costs on RCF drawings.
Non-recurring expenses amounted to -€116m in 2020 versus -€58m in 2019. This reflects to a large extent adaptation measures in HQ and Network that have been implemented to deliver a fast payback, to adapt the cost base to the new size of the company and some of the fees related to the financial restructuring.
Impairment expense on non-current assets: -€133m due to theimpact of the deteriorated environment on goodwill. These write-downs were the outcome of projections of a return to pre-crisis business levels (not before 2023), and an increase in discounting rates reflecting market volatility.
Tax: +€41m in 2020 versus -€33m in 2019, reflecting the activation of tax losses carry-forward.
Net income: The Group posted a net loss of -€645m in 2020 compared to a profit of +€30m in the same period last year.
CORPORATE FREE CASH FLOW CORPORATE NET DEBT IN 2020
Corporate Operating Cash Flow in FY 2020
Corporate Operating Cash Flow came in at -€419m in 2020.
This reflects Adjusted Corporate EBITDA of -€172m, non-fleet capex of -€33m limited to the Group's digital transformation, -€70m of non-recurring expenses mainly linked to adaptation costs with fast pay back, -€5m for the change in working capital, a negative -€16m change in provisions, -€17m income tax and -€104m lease liability cash out under IFRS 16 application on network, airport and HQ lease contracts.
In Q4 2020, the Group generated a Corporate free cash flow of -€76m, coming from Adj. Corporate EBITDA of -€18m with a strong impact coming from -€40m non-recurring items, +€3m change in working capital, +€8m change in provisions, -€7m income tax and -€23m lease liability cash out under IFRS 16 application on network, airport and HQ lease contracts.
For more details regarding cash preservation measures and cost savings, please refer to "Reboot" plan, page 10 and Investor Relations section of the Group's website:
https://investors.europcar-group.com/investor-relations
Corporate Net debt8 at December 31, 2020: strong reduction in cash burn in H2 2020
The strict cost control policy led the group to reduce its cash consumption between the two semesters: -€371m in H1 2020 and -€175m in H2 2020. Cash consumption in Q4 2020 totaled -€104m on the back of the non-recurring charges and the second wave of Covid-19.
Corporate net debt reached €1,426m as at December 31th, 2020 versus €880m at December 31st, 2019: the change mainly came from the negative operating free cash flow.
The Group recorded Corporate liquidity of €375m.
FINANCIAL RESTRUCTURING LEADING TO ROBUST LIQUIDITY AND BALANCE SHEET
The Group completed in record time its financial restructuring through debt conversion and capital increases. This allows to reduce significantly its corporate net debt by €1,100m to €93m proforma as at December 31st, 2020 (€1,426m reported), navigate in the current uncertain environment and fund the Group "Connect" transformation.
The Group records robust Corporate liquidity post-financial restructuring of €587m compared to €375m reported.
NEW GOVERNANCE STEMMING FROM FINANCIAL RESTRUCTURING
At the AGM on 20 January 2021, the Group has changed its Governance from an Executive and Supervisory Board to a Board of Directors. The latter is made up of 7 members:
- Chairman: Alexandre de Juniac
- Chief Executive Officer: Caroline Parot
- 3 independent members: Chairman, Virginie Fauvel and Martine Gerrow
- 2 non-independent members: Carl Leaver and Simon Franks
- One employee representative: Adèle Mofiro
"REBOOT" "CONNECT", GROUP'S STRATEGIC PLAN TO DRIVE SUSTAINABLE PROFITABLE GROWTH
Europcar Mobility Group announced at the inception of the Covid outbreak in Europe in 2020 a drastic cost action plan "Reboot" to mitigate the impact of the Covid-19 outbreak, then in July 2020 the launch of "Connect" plan. This strategic plan will drive sustainable and profitable growth and will unlock value creation.
REBOOT ADAPTING TO THE BUSINESS ENVIRONMENT
A massive cost-reduction plan
Europcar Mobility Group set up as early as March 2020 a vigorous, drastic and granular cost cutting plan in order to mitigate the impact of the crisis, aligning resources to the reduced size and activity level of the company, including both variable and fixed costs. The swift reaction of the Group highlights its agility, flexibility and adaptability of its operating model. Initially estimated at €850m cost savings by year-end 2020, cost reduction amounted to ~€1bn9, coming to a large part (~80%) from variable costs.
Strong focus on cash preservation
The Group strictly monitored all expenses, limiting them to its essential needs for 2020:
- Non-fleet capital expenditure: limited to essential IT projects
- Non-recurring items: contained to restructuring expenses with fast payback
- Strict management of non-fleet working capital with a strong focus on collection and rigorous management of payables
- Voluntary reduction of the Senior Management of the group
The Group also managed to raise some State Guarantee loans in France and in Spain for €321m to sustain its liquidity.
Those drastic cost reduction initiatives and cash preservation allow the Group to enter into 2021 with a substantial lowered breakeven point.
CONNECT RESHAPING THE GROUP TO BE A LEADER IN FLEXIBLE, SUSTAINABLE, CONNECTED AND DIGITAL MOBILITY SOLUTIONS
Mobility services are expanding rapidly, fueled by technological and social trends. The pandemic has accelerated the evolution in expectations and needs as people want a safe, digital and flexible solutions in a broader transition from ownership to user ship, as well as a growing reliance on e-commerce and home delivery.
This results in an acceleration of the Group's transformation plan, designed in Q2/Q3 2020, relying on:
Its purpose "Offering attractive alternatives to vehicle ownership, in a responsible and sustainable way"
- A renewed go to market strategy to better address mobility use cases the Group wants to serve
- A reshaped network model and footprint, to gain efficiency and increase interplay with local eco-systems
- A new, unified technology platform, for greater go-to-market agility and to digitize customer experience and back-office operations at scale.
A new go to Market to better address mobility use cases supported by a new organization
In order to best serve B2B and B2C customers, as well as to add substantial and tangible value to the experience the Group's brands offer them, the Group's organization is now structured around 3 Service Lines sharing One integrated augmented infrastructure.
Each Service Line dedicated to respond to specific mobility use cases and in charge of designing the appropriate offers and associated customer journey and operating features:
- Leisure customers to address Travel Leisure market Main expectations on price competitiveness and speed to serve.
- Professional customers: Mainly planned and contacted operations with flexibility on solutions, quality of service as a must and a strong network Main use case: vehicles replacement, business travel, fleet services, local mobility for businesses
- Proximity customers: Looking for higher accessibility of the service main use cases: vehicle substitute for long term or on demand solutions like carsharing.
These Service lines will rely on One integrated augmented infrastructure which will support these use cases and improve the Customer journey and the efficiency of the organization, through One Connected fleet, One Network, One Information System and One pool of talents.
The implementation of "Connect" is based on four enabling pillars with its main transformation roadmaps:
- Fleet: simplification of fleet mix categories, reinforcement of connected cars, green fleet, direct access to cars (100% of the fleet connected and above 30% of green vehicles by 2023)
- Network: reshuffling of the station footprint and role based on use cases operating models: Airports, Hubs in towns, Delivery Collect and light touch point,
- Technology one Core operating system for Corporate and Franchisees with one common customer database, one connected fleet platform, one back office
- Organization, Talents Culture: renewed set up for Group's Executive Committee, simplification of the organisation centralization while delayering, process alignment, strong rationalization of HQs framework
Since the beginning of 2021, the Group has already delivered the first steps of Connect transformation notably towards the local professional customers and the proximity customers:
Launch of new innovative offer to facilitate the day-to-day life of our customers thanks to flexible, mid long-term subscription solutions for companies and businesses for both Cars and Vans
- Acceleration of the deployment of the connected vehicles, in particular Vans Trucks leveraging notably on the growing ecommerce business
- Pursue of the Electrification of the fleet in strong connection with our ESG ambition
ESG AMBITION FULLY EMBEDDED IN THE GROUP'S VISION AND STRATEGY
Europcar Mobility Group is strongly involved to play a leading role in the new multi-modal mobility ecosystems, by offering alternative solutions to vehicle ownership, in a responsible and sustainable manner. As such, the Group is fully committed in making a significant contribution to the necessary transition to a "low-carbon" world.
Against this backdrop, the Group will strongly focus on reducing its direct emissions (energy consumption) by 46% and indirect emissions by 13% by 2030 (base year 2019). These objectives, as well as the carbon trajectory to reach them, will be submitted for validation to the Science-Based Targets initiative in the course of H1 2021. This encompasses numerous levers: increase of the share of "green vehicles" within Group's fleet ("One sustainable fleet program" so as to reach more than a third of electric and hybrid vehicles in its fleet by 2023), launch of attractive offers to develop customer's appetite for "green vehicles", or use of green energy wherever possible in our daily operations.
The Group has already made progress in terms of environmental responsibility in recent years and was notably rewarded for its ESG performance in 2020 by the EcoVadis rating agency. With a score of 70/100, the Group has improved by 6 points compared to 2019 and for the first time has been awarded the Gold Medal. Europcar Mobility Group thus joins the group of companies that achieve this high level of performance (top 5% of the 75,000 companies rated by EcoVadis).
FULL YEAR 2021 OUTLOOK
Given the high level of uncertainties on the timing of the recovery of the global economy (speed of the vaccine campaign, vaccine passports, travel restrictions…), the Group is not yet in a position to provide guidance for the FY 2021.
Nevertheless, based on the robustness of the domestic revenue generation driven by Vans Trucks Business Unit and the adequate renewed go to market strategy of both Professional and Proximity Services lines, the Group is confident that 2021 revenues will increase compared to 2020.
Focus for 2021 is to deliver the first steps of Connect transformation with a selective capital allocation approach, while pursuing the adaptation of the cost structure.
AGENDA
First quarter 2021 results: May 6th, 2021
General shareholders' meeting: June 30th, 2021
About Europcar Mobility Group
Europcar Mobility Group is a major player in mobility markets and listed on Euronext Paris. The mission of Europcar Mobility Group is to be the preferred "Mobility Service Company" by offering attractive alternatives to vehicle ownership, with a wide range of mobility-related services and solutions: car rental and light commercial vehicle rental, chauffeur services, car-sharing, scooter-sharing and private hire vehicle (PHV rental to "Uber like" chauffeurs). Customers' satisfaction is at the heart of the Group's mission and all of its employees and this commitment fuels the continuous development of new services. Europcar Mobility Group operates through a diversified portfolio of brands meeting every customer specific needs and use cases, be it for 1 hour, 1 day, 1 week or longer; its 4 major brands being: 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 solutions 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).
Forward-looking statements
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 on May 6, 2020 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.
Regulated information related to this press release is available on the website:
https://investors.europcar-group.com/results-center
www.europcar-mobility-group.com
1 After IFRS 16 application, excluding non-fleet liabilities related to leases
2 Proforma basis i.e. including in 2019 acquisitions of Fox consolidated in November 2019 franchisees in Finland and Norway in July 2019
3 With reference to the €3bn cost base initially planned pre-Covid-19. Before IFRS 16 application
4 €212m net cash equity, net of fees
5 Excluding Fox consolidated in November 2019 and franchisees in Finland and Norway consolidated in July 2019
6 With reference to the €3bn cost base initially planned pre-Covid-19. Before IFRS 16 application
7 Before IFRS 16 application
8 Excluding liabilities related to leases
9 With reference to the €3bn cost base initially planned pre-Covid-19. Before IFRS 16
View source version on businesswire.com: https://www.businesswire.com/news/home/20210407005845/en/
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