Europcar announces 2010 results

For the year ended December 31, 2010, Europcar’s consolidated revenue rose by
4.6% to €1.973 billion, from €1.886 billion in 2009, restated at constant exchange rates.

Average Revenue Per Day (RPD) rose by 3.7% in the year, in line with the 3.4% increase reported for the full year 2009. Overall for the year, rental day volume increased by 0.9% compared with the 2009 level.

Europcar has recorded continuous and significant improvements in RPD over the past
10 quarters. Europcar’s leadership in the European market has enabled the Group to maintain pricing discipline and continue the actions begun in the 3rd quarter of 2008 to improve the customer mix.

The Company’s adjusted operating margin advanced to 12.3% in 2010, from 11.5% in
2009. Along with the revenue growth, the leaner cost structure resulting from the measures taken in 2009 to adapt the company’s fleet size and organization to lower demand and tight control on fleet volume and holding cost account for the improvement in operating profitability in the period.

Fleet utilization remained stable at a high level, 73.6% (73.7% in 2009).

Average net debt remained under control, and its increase was contained to 3.0% at constant exchange rates. This reflects the 1.1% increase in average fleet in the year and a slight increase in the average value of fleet per unit.

In 2010, Europcar refinanced its main line of fleet financing, more than nine months ahead of its contractual maturity in May 2011. The new financing consists of a bank facility put in place in August of €1.3 billion, maturing in 2014, and bonds issued in late June for €250 million (maturity 2017, coupon 9.75%). The Group also took advantage of favorable conditions in the bond market at the end of the year to extend the maturity of approximately half of its acquisition debt. The issue of €400 million in new bonds with a maturity in 2018 (9.375% fixed coupon) enabled early repayment of €375 million in bonds maturing in 2014.

Philippe Guillemot, chief executive officer of Europcar Group, commented:
“Our 2010 results show the return to growth for Europcar, after 18 months of business contraction. This, together with the full effect of the reorganization measures implemented in 2009, resulted in improved profitability. With the extension of the maturities of our main fleet financing facility and half of our corporate debt, we have time in front of us to grow our business. To this end, in 2010 we built our 3-Year Plan, to enhance growth and improve financial performance over 2011-2013.

The recovery in demand remains modest though, and many situations across the globe have an impact on the travel industry. These challenges may also represent opportunities. The agility of Europcar’s organization is more relevant than ever to face today’s fast-changing business environment.”