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2016 solid results support Europcar’s strategy

  • Revenues of €2,151 million up 3.0% at constant exchange rates
  • Adjusted Corporate EBITDA of €254 million up 3.2% at constant exchange rates
  • Corporate Operating Free Cash Flow of €157 million up 83%
  • Net income reaches a record €119 million
  • Europcar meets its revised financial guidance
  • Exceptional dividend payout ratio of 50% of annual net income



Saint-Quentin-en-Yvelines, February 28, 2017 – Europcar (Euronext Paris: EUCAR) today announced its 2016 results.


For Caroline Parot, Chief Executive Officer of Europcar Group:

 “2016 was an important first step towards our ambitious strategic plan for 2020”.

We delivered a solid set of operational and financial results despite a challenging environment. This sound performance resulting in strong free cash flow generation is further proof of the robustness of our business model.

We made a number of acquisitions consistent with our strategy, including the purchase of two major franchisees, which have strengthened our leadership in our core business and have enhanced our footprint in the new mobility market.

We announced at our first Investor Day in October a new ambition for the Group with a dual target of reaching at least 3 billion euros of revenue and at least 14% Adjusted Corporate EBITDA margin by 2020.

Our new organization with 5 business units will enable us to accelerate our customer and market centric growth strategy. We have also made significant progress in terms of customer satisfaction and have continued to strive towards operational excellence.

Future investment into the Group’s digitalization, our customer journey, a strong focus on delivering revenue and profitability growth across all of our business units, as well as an accelerating momentum on the acquisition front gives us great confidence for 2017 and beyond”.


All data in €m, except if mentioned

FY 2016

FY 2015


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Average Fleet (thousand)





Financial Utilization rate



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Adjusted Corporate EBITDA





Adjusted Corporate EBITDA Margin





Operating Income





Net profit/loss




Corporate Free Cash Flow





Corporate Net Debt at end of the period





Corporate Net Debt / EBITDA ratio







2016 Operational highlights

2016 was an important year during which the Group strengthened its fundamentals, improved its operational performance, and implemented a range of structural initiatives paving the way for an acceleration of its strategy.

The Group continued to focus on improving its customer service through some dedicated programmes such as Customer First and Air Force One (focused on the Group’s 20 largest airport stations). These efforts have enabled the Group to deliver significant improvements in its net promoter scores with an impressive increase of 4.8 points during May-December 2016 compared to the same period in 2015.  

In 2016 the Group continued to strive towards the delivery of operational excellence. With regards to the management of the fleet, the Group was able to both improve its fleet financing terms (by negotiating better terms for its SARF, the senior tranche of our fleet securitization, in September) and its fleet utilization rate (up 40 basis points at 76.5% versus 76.1% in 2015).

The Group’s leisure business, responsible for 58% of Group revenue, acted as the main growth engine for the Group as it benefited from good yield management and a strong performance, particularly in the second half of the year. InterRent, the Group’s low cost brand, had another strong year of growth in 2016 across our corporate countries as well as our franchisees.

During 2016, the Group started to execute its acquisitions plan and acquired two of its franchisees, Locaroise in France and its Irish franchisee. The Group continued to bolster its presence in the new mobility solutions market with the acquisition of Bluemove in Spain, Brunel in the UK and more recently Guidami in Italy.  

The Group also continued to expand its worldwide footprint. In January 2017, the Europcar Group signed a worldwide commercial partnership with Shouqi Car Rental, a leading car rental company in China. This adds another fundamental brick in the Group’s global footprint in a key market with high potential. 


2016 Financial highlights


The Group generated revenues of €2.151 million in 2016, up 3.0% at constant exchange rates compared with 2015. On an organic basis, ie at constant exchange rates, constant perimeter and excluding petrol, the Group revenues grew by 2.6%. In the fourth quarter, Group revenue growth reached 5.2% and 3.4% on an organic basis.

This significant increase in Group revenues was the result of positive growth across all the Group’s major business units with Cars growing by 1.7%, Vans & Trucks growing by 0.7% and InterRent growing by an impressive 74%.

The number of rental days increased to 59.9 million in 2016, up 4.9% versus 2015. This growth in rental days was spread across all our key divisions with cars growing 1.5%, Vans & Trucks growing 5.3% and InterRent growing 75%. On the other hand, Revenue per rental day decreased by 1.7% at Group level, mostly impacted by a 4.4% decline in the Vans & Trucks business unit reflecting a strategic focus on extending utilization and rental duration.


Adjusted Corporate EBITDA[1]

2016 Adjusted Corporate EBITDA increased by 3.2% at constant exchange rates to €253.9 million compared to €246.0 million in 2015. This increase brings the Corporate EBITDA margin to 11.8% up 10 basis points versus 2015. This good performance is the result of a 40 basis points increase in the Group’s fleet financial utilization which reached 76.5% in 2016 versus 76.1% in 2015, as well as a good control of the Group’s fleet cost per unit.  


 Corporate Operating Free Cash Flow

2016 Corporate Operating Free Cash Flow surged to €157 million up 83% compared to €86 million in 2015. This significant increase is the reflection of our strong business model and of a more normative and structural Free Cash Flow generation level. 2015 was impacted by one off events such as the IPO process and an internal restructuring programme. As a consequence, this enables the Group to deliver a record but more importantly a more normative 62% operating free cash flow conversion rate. [2]  

 Operating income  

2016 operating income came in at €262.7 million up 19% compared to €221.5 million in 2015. This significant increase is mostly due to the fact that the Group incurred much less non-recurring expenses in 2016 compared to 2015 which was impacted by litigation, restructuring and IPO-related costs.

Net financing costs  

Net financing costs under IFRS amounted to a €121.1 million net expense in 2016, a significant improvement compared to a net expense of €227.6 million incurred in 2015. The main reasons for this improvement are (1) the full year impact of the debt restructuring that followed the IPO in 2015 and (2) the impact of the renegotiation of the fleet financing in 2016. 

 Net income

In 2016, the Group posted a net profit of €119.2 million, compared to a €55.8 million net loss in 2015. This significant improvement arose from the good evolution of the operational performance and the significant decrease of the financing cost.

Net debt

Corporate net debt continued to decrease to reach €220 million as of December 31, 2016 (vs. €235 million as of December 31, 2015) as a result of the Group’s strong free cash flow generation and even after the amount of €47 million spent for acquisitions and strategic investments in 2016.

The fleet debt was €3,045 million as of December 31, 2016 vs. €2,821 million in December 31, 2015. This increase reflects the higher number of vehicles in the fleet in order to sustain the growth of the Group’s operations and the fleet mix evolution.


2016 revised guidance delivered

The Group has exceeded all the revised targets that were set out in July following the Group’s first half year results. The Group’s organic revenue growth was 2.6%, Adjusted Corporate EBITDA was up 3.2% at €254m and Corporate Operating Free Cash Flow conversion reached 62% in 2016.


Exceptional Dividend Payout of 50%

Finally, the board of Directors has decided to recommend the payment of an exceptional dividend for 2016 representing 50% of the Group’s net income in line with the Group’s 2016 revised guidance.



2017 guidance

In 2017, the Europcar Group plans to achieve the four following financial targets compared to 2016:

– Accelerating organic revenue growth ie above 3%

– Increase in adjusted corporate EBITDA margin (excluding New Mobility) ie above 11.8%

– A corporate operating free cash flow conversion rate above 50%

– A dividend payout ratio above 30%

The Group reiterates its strategic ambition to continue the roll out of its acquisition plan in order to increase value creation for its shareholders.


2020 Ambition and new corporate organization by business unit

Europcar announced in October 2016 its dual ambition to reach by the end of 2020:

  • Over €3 billion of revenue
  • Adjusted Corporate EBITDA margin above 14% (excluding New Mobility)


This €3 billion revenue target will be achieved through a mix of organic growth (€300-€500 million of additional revenue expected) and acquisitions (with an expected amount of at least €500 million over the period).

The Group’s 14% Adjusted Corporate EBITDA margin target, which excludes the impact of new mobility services, will be generated from the Group’s ability to generate significant operational leverage both organically and from its future acquisitions.

As a key enabler of this 2020 Ambition, the Group has implemented a new organization as of January 1st 2017. The Group is now organized into five business units in order to better meet with customer expectations, to be better positioned to seize new business growth opportunities and to be more efficient against its competition.

These five business units are:

  • Cars, where the objective is to reinforce the Group’s strong #1 position in Europe in a market estimated to be worth around €10 billion.
  • Vans & Trucks, where the objective is to become a European leader in a market estimated to be worth around €2.4 billion and where the Group’s current market is only around 9%.
  • Low Cost, where the Group’s objective is also to become a European leader, in a market estimated to be worth around €1.4 billion and where the Group only has a 6% market share.
  • New Mobility Services, where the Group aims to address new usages and strategically prepare for the future by building on its leadership in the new mobility solutions market.
  • International Coverage, where the ambition is to continue to expand the Group’s services globally.  


Post-Closing Events

On January 12th 2017, the Europcar Group signed a worldwide commercial partnership with Shouqi Car Rental, a leading car rental company in China. This adds another fundamental brick in the Group’s global footprint in a key market with high potential. 

On February 17th 2017, Europcar Group made the acquisition of the remaining 25% minority stake in Ubeeqo which was held by the company’s founders. As a result, Europcar Group now owns a 100% of Ubeeqo.

On February 27th, the French Antitrust Authority announced the dismissal of its case against the French car rental industry. This decision has no impact on the 2016 full year results.

[1] Adjusted Corporate EBITDA is defined as current operating income before depreciation and amortization not related to the fleet, and after deduction of the interest expense on certain liabilities related to rental fleet financing. This indicator includes in particular all the costs associated with the fleet. See “Reconciliation with IFRS” attached.

[2] The Operating Free Cash Flow conversion rate is defined as Adjusted Corporate Operating Free Cash Flow / Adjusted Corporate EBITDA expressed as a percentage. 


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