Loxam RS June presentation vfinale · This presentation does not constitute or form part of and should not be construed as an offer to sell or issue, or the solicitation of an

INVESTOR PRESENTATION

LONDON 14 JUNE 2013

DISCLAIMER

This presentation does not constitute or form part of and should not be construed as an offer to sell or issue, or the solicitation of an offer to buy or acquire, securities of LOXAM (the “ Issuer”), in any jurisdiction or an inducement to enter into investment activity. It is solely for use at an investor presentation for i nformation only. It does not contain all of the in formation relating to the Issuer or its business that may be material to an investor. No part of this presentation, nor the fact of its dist ribution, should form the basis of, or be relied on in connection with, any contract or co mmitment or investment decision whatsoever.

The information contained in this presentation has not been independently verified. No representation , warranty or undertaking,express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, comple teness or correctness of the information or the opinions contained herein. None of the Issuer or any of its respective affiliates, advisors or representatives shall have any liability whatsoever (in negligence or oth erwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with th e presentation.

This presentation includes "forward-looking stateme nts". These statements contain the words "anticipa te", "believe", "intend", "estimate", "expect" and words of similar meaning. All statements other than statements of historical facts included in thispresentation, including, without limitation, those regarding the Issuer’s financial position, business strategy, plans and objectives of management for future operations (including develop ment plans and objectives relating to the Issuer’s projects and services), are forward-looking statements. Such forward-looking s tatements involve known and unknown risks, uncertai nties and other important factors that could cause the actual results, perfor mance or achievements of the Issuer to be materiall y different from results, performance or achievements expressed or implied by such forward-looking statements. Such forward-loo king statements are based on numerous assumptions regarding the Issuer’s pres ent and future business strategies and the environm ent in which the Issuer will operate in the future. These forward-looking state ments speak only as at the date of this presentatio n. Each of the Issuer and its respective agents, employees and advisers, expressl y disclaims any obligation or undertaking to update any forward-looking statements contained herein.

The information and opinions contained in this docu ment are provided as at the date of this presentati on and are subject to change without notice.

PRESENTATION OF SPEAKERS

Patrick BourmaudCFO

9 years with LOXAM

Gérard DéprezCEO

27 years with LOXAM

Stéphane HénonManaging Director

13 years with LOXAM

AGENDA

Introduction

Equipment rental market overview

Business overview

Financial overview

Strategy

Q&A

INTRODUCTION

INTRODUCTION

The issue of a bond, a new model of financing

14%

Contribution to LTM Mar-13 revenues

LTM Mar-13 Group Revenues LTM Mar-13 Group EBITDA

� Number of branches: 454 � Number of branches: 60 � Number of branches: 88Branches

Brief description

� Equipment for all construction, industrial, landscaping and local authorities activities

� Specialist equipment, such as aerial work platforms, generators, portable accommodation, heavy equipment for civil engineering

� Generalist and specialist agencies in 9 European countries and Morocco

Brands

� Total revenue: €549m

� EBITDA: €166m (30% margin)

Key financial elements LTM Mar-13





GENERAL OVERVIEW

LOXAM Power

LOXAM Module

LOXAM Access

LAHO TEC

LOXAM LEV

LOXAM TP

LOXAM Event

LOXAM Switzerland

LOXAM Belgium

LOXAM Germany

LOXAM Access UK

LOXAM Ireland

LOXAM Spain

LOXAM Netherlands

LOXAM Denmark

LOXAM Morocco

LOXAM Luxembourg

Key figures Generalist division - France Specialist division - France International division

€801m (of which €685m or 86% in France)

€248m (of which €215m or 87% in France)

Division level

69%17%

KEY INVESTMENT HIGHLIGHTS

Favorable long-term market trends

Largest rental company in Europe

Highly diversified and fragmented client base with established loyalty from its customers

Ownership of one of the largest and most diversifie d fleet in Europe, renowned for its quality and availability

An innovative company with a flexible and responsiv e network

Proven ability to manage business cycles : robust fi nancial track record

1

2

3

5

4

6

EQUIPMENT RENTAL MARKET OVERVIEW

EQUIPMENT RENTAL PENETRATION RATE HAS UPSIDE POTENTIAL IN FRANCE

Sources Advention, company estimates

Large construction companies

Construction SMEs Industry Local authorities Events & media Others

Source ERA

2011 rental market penetration rates by country¹

Estimated equipment rental penetration rate by end- client and expected trends

1. Defined as the ratio between the total equipment rental market value and the total construction market value

3,1%

2,0%1,7% 1,7%

1,5%1,3% 1,3%

1,1% 1,0% 1,0%0,9%

0,6%

1,5 1,6 1,7 1,7 1,8

2,3 2,4

2,8

3,23,0

2,7 2,83,0

3,3

3,6 3,7

3,2 3,3

3,8 3,9

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0

4,5

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

LONG TERM GROWTH OF FRENCH EQUIPMENT RENTAL MARKET

Historic value evolution of the French equipment rental market since 1993 (€bn)

Source: DLR

CAGR (93 – 97): +4.0% CAGR (97 – 01): +15.9%CAGR

(01 – 03): -8.9%

CAGR (03 – 07): +8.0%CAGR

(07 – 08): +1.4%

CAGR (08 – 09):

-13.2%

CAGR(09 – 12): +6,7%

+5.0 +4.0 +1.0 +6.0 +32.6 +0.6 +18.0 +14.6 -5.2 -12.4 +10.2 +10.8 +1.4 -13.2+5.4+5.7–

Y to Y growth (%)

+3.2 +13.1 +4,1

EUROPEAN MARKETS HEADING TOWARDS RECOVERY IN 2014

2013 to 2015 construction industry growth by country

Sources: December 2012 Euroconstruct report; BIPE update on French construction April 2013

2,5% 2,2%

-3,3%

0,1%

2,5%

-2,1%-2,8%

-5,3%

-23,0%

-2,5%

0,5%

4,7%

1,7% 1,4% 1,0%

2,6%

5,4% 5,5%

-1,1%

1,8%

-25,0%

-20,0%

-15,0%

-10,0%

-5,0%

0,0%

5,0%

10,0%

SWI DAN FRA BEL GER UK NL IRL SPA Average

2013e

2014e

2015e

RESILIENT CIVIL ENGINEERING IN FRANCE THROUGH 2015

Sources : BIPE, April 2013 and Euroconstruct, December 2012

-5,0%

-4,0%

-3,0%

-2,0%

-1,0%

0,0%

1,0%

2,0%

3,0%

4,0%

2012E 2013E 2014E 2015E

Construction Residential Non residential Civil engineering

European rental market growth 2007-2014f

Source: European Rental Association, May 2013

EUROPEAN RENTAL MARKET TO INCREASE BY 1% IN 2013

2013 rental market growth forecastin selected European countries

13,5%

0,1%

-11,6%

1,6%

4,0%

0,1% 0,8%2,5%

-15,0%

-10,0%

-5,0%

0,0%

5,0%

10,0%

15,0%

2007 2008 2009 2010 2011 2012 2013f 2014f

0,3%

2,0% 1,8%

-5,4%

-1,8%

0,2%

5,0%

-6,0%

-4,0%

-2,0%

0,0%

2,0%

4,0%

6,0%

BEL GER DEN SPA FRA NL UK

BUSINESS OVERVIEW

LOXAM IS THE LARGEST RENTAL COMPANY IN EUROPE

France – 2012 market shares Europe – 2012 revenue (€m)

Source: KHL – International Rental News 2011 top 100 international ranking and top 50 European ranking

1.5x 9.0x

18%

12%

2%

828

714688

460

415

289

202

DENSEST NETWORK IN FRANCE

# branches

10

34

1

7

2

112

5

234

108

France total LTM Mar-13 revenue: €685m

Generalist

Specialist

Specialist branches

Generalist branches

#1 in FranceLeader on national and

regional levels

LARGEST FOOTPRINT IN EUROPE

Germany

Number of branches: 14

Ireland


Belgium


Denmark


Luxembourg


UK


Netherlands


Switzerland


Morocco



Spain

Total International LTM Mar-13revenue: €116m (14% o f total)

Challenger: regional positioning

Leader (top 3): national positioning

Morocco

OthersEvents &

media companies

Local authorities

IndustrySMELarge-size

Civil engineering and construction

Highly loyal customer base : Long-term relationships (>20 years) with top clients

Stability in top 10 clients over past 5 years

Highly diversified customer base : Largest customer represents more than 1,000 companies

68% of FY12 sales in France

32% of FY12 sales in France

EVENTS

c. 150,000 clientsc. 150,000 clients

LOXAM’S CLIENT BASE IS FRAGMENTED AND DIVERSIFIED

c. 167,000 pieces of equipment / More than 1,000 types of equipment with a replacement value of c. €1.6bn

Main equipments

Modulars• Modular spaces• Containers

Building & Others

• Concrete mixers• Scaffolding, trucks, pumps• Tools, traffic management

Energy• Compressors• Generators, coolers

Handling • Forklift and telehandlers

Compaction• Compactors• Rammers, rollers

Earth moving• Excavators• Backhoes , loaders, dumpers

Aerial work platforms

• Booms, scissors• Van mount, truck mount

FY12 Sales splitby type of equipment

Building & Others

Modulars

Energy

Compaction

HandlingAerial work

platform

Earthmoving

LOXAM OWNS OF ONE A LARGE AND DIVERSIFIED FLEET

THE FLEET OF EQUIPMENT IS MODERN AND WELL MAINTAINE D

Historical fleet investments and disposals (€m)

• Top 2/3 suppliers for each reference

• No long-term agreements and no volume commitments or exclusivity clauses

• Optimized prices of equipments

• Contracts service suppliers with medium-term (2 –3 years) framework agreements (delivery trucks, consumables)

• Regular fleet control and quality audit performed by Veritas and SGS

Top suppliers

Comments

0

50

100

150

200

250

2005 2006 2007 2008 2009 2010 2011 2012

€m

Gross book value of disposed fleet equipment Fleet investments

OPTIMAL ORGANIZATIONAL STRUCTURE

Central Management

40Business Units

600Branches

• Strategy• Processes• Sourcing• Back office support• M&A

• Network management• Benchmark• Convergence

• Autonomous branch management:• Budget P&L and KPIs

• Business development

• Decentralized structure

A DYNAMIC, CONSTANTLY INNOVATING GROUP

Equipment range expansion

� Loxam has extended its already-wide equipment range to:

• Complete its current offer destined to construction companies

• Increase its penetration in events, industrial, landscaping clients

• Target craftsmen, individuals and small business

Implementation of new technologies

SmartPhone Application

Social networks

Webmarketing

Loxforce CRM

Services innovation examples

Quality, Sustainability and CSR

ISO 9001: demonstrating Loxam’s ability to provide quality products

ISO 14001: proving Loxam’s commitment to the environment

Professional and social development of staff through training

LOX Call is our clients’ call center staffed with Loxam executives

LoxamCity is our network of tool stations within city centers

LOXAM drive enables customers to book their equipment by phone or online and to retrieve 24 hours later the equipment in their car

LOXAM Supervision provides video surveillance services for major construction sites

FINANCIAL RESULTS

HISTORICAL RESILIENCE IN MARGIN AND CONSISTENT DELE VERAGING

Adj. EBITDA (€m) and Adj. EBITDA margin a

598

CAGR 05 – 08: 20.4% (17.7)%

Revenues (€m)

355 375 540 543 527 526 609Branches

09 – 12: 5.9%

Net debt (€m) and Leverage ratio (net debt / Adj. E BITDA)

485 541

738848

698 702807 828

2005 2006 2007 2008 2009 2010 2011 2012

160 197266 302

235 234 275 274

33% 36% 36% 36%34% 33%

34% 33%

2005 2006 2007 2008 2009 2010 2011 2012

598 573

1,0031,099

886 811 857 778

3,6x2,9x

3,8x 3,6x 3,8x 3,5x 3,1x2,8x

2005 2006 2007 2008 2009 2010 2011 2012

(a) Adjusted EBITDA excludes non-recurring costs. These adjustments amounted to €10.2m in FY 2011 and €7.2m in FY 2012.

(€m) LTM Mar-12 LTM Mar-13 Change (%)

Revenue 828 801 -3.3%

Adj. EBITDA (a) 284 248 -12.6%

Margin 34% 31%

Adj. EBIT (a) 123 98 -20.2%

Margin 15% 12%

Free Cash Flow 47 62 +31.3%

Leverage ratio 3.0x 3.2x +0.2x

RESILIENT PERFORMANCE DESPITE SLOWDOWN

(a) Adjusted EBITDA and Adjusted EBIT exclude non-recurring costs. These adjustments amounted to €10.2m in LTM Mar-12 and 12.3m in LTM Mar-13.

STRONG FREE CASH FLOW GENERATION

Full year (€m) 2009 2010 2011 2012

Operating EBITDA 1 212 217 255 251

Gross capex (37) (108) (177) (139)

Proceeds from disposals of fixed assets 56 25 16 18

Net capex 19 (83) (161) (117)

Interest (43) (39) (32) (30)

Taxes (14) (19) (24) (34)

Change in working capital 40 6 22 16

Operating FCF 2 214 82 60 86

Note: 1 excluding capital gains2 before dividend payment, capital increase and acquisitions

BALANCED FINANCING STRUCTURE

Loxam debt structure as of 31/03/13

Highlights of Bank debtLoxam debt localization as of 31/03/13

� Loxam’s bank loans consist of: a syndicated credit facility of €243m, €353m of bilateral lines and €45 m of financial leases. Also Loxam disposes of a €75m RCF which is not drawn

� The syndicated facility is a 5-year agreement signed in July 2011

� Bilateral debts finance capex and have the following characteristics :

� 5 year maturity

� No pledge on assets

� funded by a pool of 15 banks

Evolution of Loxam’s leverage and covenant

42%

25%

31%

2%

Bilateral loans and financial leases Syndicated loans

Senior notes Other financial debt

Q1 2013 gross debt

€981m

Loxam SAS97.6% of total bank debt

International subsidiaries

1.4% of total bank debt

French subsidiaries

0,9% of total bank debt

Real estate subsidiary


French subsidiaries

0,9% of total bnkdebt

Real estate subsidiary


2,0 x

2,5 x

3,0 x

3,5 x

4,0 x

4,5 x

Dec 2008 Dec 2009 Dec 2010 Dec 2011 Dec 2012

Net debt / EBITDA Senior debt Covenant

DEBT MATURITY PROFILEa

Maturity profile of syndicated facilities and HY no tes + RCF (€m)

Maturity profile of bilateral debts and financial l eases (€m)

3247

72 92

150

300

75

Q1 2013 Q2-Q4 2013 2014 2015 2016 2017 2018 2019 2020

Syndicated facilities HY notes RCF not drawn

107 100 8551 23

9 1211

12547

Q1 2013 Q2-Q4 2013 2014 2015 2016 2017 2018 2019 2020

Bilaterals Finance leases

(a) As of 31/03/2013.

STRATEGY

OVERVIEW OF LOXAM’S LONG TERM STRATEGY

• Pursue optimization/rationalization through a dynamic management of the branches

• Unfold convergence plan across all business unitsNetwork

• Pursue its optimal fleet management (maintenance, renewal, targeted diversification)• Constantly relocate fleet across the network to maximize utilization and capture

profitable growth

Fleet

• Streamline brand portfolio in FranceBrand

• Continuously drive Loxam according to Management’s anticipation of the rental markets evolution

Cycle management

• Maintain best in class level of margin• Decisions to produce long lasting benefit

Profitability

• Pursue a selective M&A strategy to strengthen network in Europe through bolt-on or strategic acquisitions

• Opportunistic acquisition during downturnExternal growth

STRONG TRACK RECORD OF ACQUISITIONS AND INTEGRATION

Acquisition strategyLoxam acquisitions since 2005

Evolution of EBITDA margin post acquisition

2007 Airent Generalist

2007 Laho Generalist

2007 DNE/JJ Generalist

2008 Lev Specialist

2010 Locamachine Generalist

2011 Régis Ile de France Generalist

2011 Stammis Generalist

2011 Locarest Generalist

2012Mediaco specialist divisions

Specialist

• Development of international business

• Ability to rollout Loxam convergence plan

• Remain in core business

• Ability to raise margin of the target

Confidential

24% 24% 25%28%

33%

29%31%

32%

25%27%

29%27%

28% 28%

36%34%

36% 36% 36%34% 33% 33%

2004 2005 2006 2007 2008 2009 2010 2011LdF (2004) Laho (2007) Group

Recovery in European construction markets from 2014

Capex policy, leading to renewal and diversification of fleet

Growth sustained by organic growth and acquisitions

Sound financial performance

Operational efficiency through implementation of new technologies

2013-2015 ROADMAP

THANK YOU !

Documents

Loxam RS June presentation vfinale · This presentation does not constitute or form part of and should not be construed as an offer to sell or issue, or the solicitation of an