2011 Annual report - touax group

In the medium-term, the Group seeks to manage, on its own
behalf or on the behalf of third-parties, a fleet greater than
800,000 TEU (7% of the global market).
➜ In the Modular Buildings business,
the Group mainly manages equipment while acting as
principal. Thus, almost 90% of the managed fleet belongs
to the Group. At this time, modular buildings are built by
the Group in its assembly plants in France and the Czech
Republic. This manufacturing allows the Group to diversify
into sales activities.
The Modular Buildings business is mainly located in Europe,
France, Germany, Spain, Belgium, the Netherlands, Poland, the
Czech Republic and Slovakia. The Group also has an entity in
Florida, USA, allowing it to canvass other countries in North and
South America. 58% of the revenue is generated outside of
France. In order to limit risks and improve its visibility, the
Group prefers to sign long-term leases, which can vary from
18/24 months to 5 years.
The number of modular buildings available for leasing in
Europe has risen from 250,000 to 500,000 units in 15 years
(source: TOUAX).
In the medium term, the Group’s objective is to own a total of
75,000 modular buildings so as to have a market share of 15%
in Europe and considerably increase sales. In 2011, the Group
had a 7.5% market share in continental Europe (source: TOUAX).
➜ In the River Barges business,
the Group mainly manages equipment while acting as principal.
Thus, almost 80% of the managed fleet belongs to the Group.
The river barges are mainly leased to industrial or logistics
groups in all basins where the Group is present, and to a lesser
extent are used for transport and chartering.
The River Barges business is located in large European and
American basins. In order to limit risks and improve its visibility,
the Group prefers to sign long-term leases, which can last up to
10 years.
The number of river barges in Europe and the USA has barely
changed for several years, leading to ageing of the fleet (source:
TOUAX).
In 2011 the Group refocused on the leasing of river barges, which
is better able to withstand the crisis thanks to long-term leases.
There is demand for river barges from transport operators,
which benefits the Group.
TOUAX’s goals are to focus on long-term leases, increase sales
and make new selective investments in high-potential zones
➜ In the Freight Railcars business,
the Group mainly manages equipment on behalf of third parties.
Therefore, almost 68% of the equipment managed belongs to
investors. It should be noted that 9% of the equipment held by
the Group is earmarked for sale to third-parties in the near
future (about 1 year).
The syndication cycle is short, but nonetheless remains longer
than that of the Shipping Containers business. This is due to the
fact that the investment cycle is longer since it can take up to
one year from the time of the order to delivery of the railcars,
whereas the lead-time can be just a few weeks for containers.
Similarly, it takes longer to build a portfolio.
The Group mainly operates in Europe, but also in the United
States thanks to the joint venture created in partnership with
Chicago Freight Car Leasing, through which TOUAX offers
investors investments in railcars operated in America.
In order to limit risks and improve its visibility, the Group prefers
to sign long-term leases, which can vary from 3 to 10 years.
After a big drop in traffic in 2009, European rail freight showed
signs of recovery in 2010 with a 7% increase (source: UIC world
rail statistics for 2010). This trend continued in 2011. In the USA
the Group noted a recovery in the market linked to the energy
and agricultural products sectors. The improvement in market
conditions made it possible for utilization rates and leasing
prices to rise. The Group forecasts high demand by customers
for certain types of railcars in 2012.
TOUAX’s leasing services have attracted railway operators.
In 2012, the Group aims to continue making investments on its
own behalf and for third-parties on long-term contracts, mainly
in Europe.
In the medium term, the Group is aiming to manage a fleet of
10,000 railcars and bolster its position as Europe’s number two
lessor of intermodal railcars.
6.1.2. New product or service
Not applicable
6.2. Key markets
Cf. pages 12 and 13.
6.3. Exceptional events
Not applicable
6.4. Dependence on patents, licenses
and contracts
Not applicable
6.5. Competitive position
Cf. pages 4 to 11.
Business Overview 33