- European leader in integrated automotive logistics with a number 1 position in finished vehicle logistics and one of the top 10 international players in multimodal supply chain solutions
- Global multimodal network which spans 5 continents, 47 countries and more than 300 destinations
- Strategically positioned across the entire value chain with end-to-end specialized logistics and time-critical solutions
- Asset-light and flexible business model driving resilient margin, cash flow and attractive return on capital
- Strong growth across all divisions and continued improvement in profitability supported by performance initiatives
- Continued profitable growth expected over the coming years
THIS DOCUMENT IS NOT DIRECTED AT OR FOR DISTRIBUTION TO ANY PERSONS LOCATED IN THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR THE RUSSIAN FEDERATION, OR ANY OTHER JURISDICTION IN WHICH IT WOULD BE UNLAWFUL
GEFCO (the "Company") today announces the registration of its Document de Base (or "Registration Document") with the AMF under number I. 18-075 dated December 20, 2018 (the "Document de Base
The registration is an important step towards an initial public offering (the "IPO") of GEFCO shares on the regulated market of Euronext Paris. It follows the announcement made on October 25, 2018 by the Company and its shareholders. The completion of the IPO remains subject to market conditions, receipt of regulatory approvals and the AMF's visa on the prospectus for the transaction.
This IPO will allow GEFCO to enhance its growth opportunities and increase its leadership position in the automotive and broader logistics sectors.
Luc Nadal, Chief Executive Officer of GEFCO, commented: "This planned IPO will increase GEFCO's visibility vis-à-vis clients and partners and provide additional flexibility to accelerate our development. It comes at a time when the company has proven its ability to deliver sustained profitable growth and is well positioned to harvest further growth opportunities in the sector going forward. The registration of the Document de Base is an important milestone in our IPO project."
Through this transaction, RZD is considering a reduction of its stake to below 50% of the Company's share capital at IPO (subject to final approval by the Russian Federation). PSA Group that still holds 24,96% of GECO is considering reducing its stake to below 10% of the Company's share capital, with the remaining holding subject to a 2-year lock-up period.
The leader in European automotive logistics and number 1 in finished vehicle logistics, primed for the next phase of growth
Since RZD, one of the world's largest rail operators, acquired 75% of GEFCO's capital from PSA in 2012, GEFCO has enjoyed the continued support from its two main shareholders and delivered robust growth, both in its core automotive logistics business as well as in new verticals such as pharmaceutical, technology or industrials, leveraging the acquisition of IJS Global in 2015, a specialized freight forwarding company based in the Netherlands.
With consolidated revenues of €4.4 billion in 2017 (5.1% increase compared to 2016), the Company provides integrated logistics solutions through 4 divisions: Finished Vehicle Logistics, Overland Contract Logistics, Air Sea and Industrial Services. In the year ended December 31, 2017, the Group generated a Recurring EBIT of €139 million (22.2% increase compared to 2016), resulting in a Recurring EBIT margin of 3.1%. This solid recurring EBIT margin increase combined with a strong, flexible balance sheet have supported GEFCO's industry-leading ROCE of 31.0% as of December 31, 2017. For the nine months ended September 30, 2018, the Group generated revenues of €3.5 billion (up 9.8% like-for-like) and Recurring EBIT of €123 million (3.5% margin) after IFRS16 Impact.
While GEFCO continues to support PSA's logistics needs globally (including Opel-Vauxhall) from strategic planning support to final product delivery, the share of PSA (including Opel-Vauxhall) has decreased over the past years and represented 56% of 2017 consolidated revenues, demonstrating the Company's ability to successfully diversify its customer base outside of its core historical clients.
This successful diversification strategy has led to the increase in non-auto revenues and the expansion into new end-markets; in 2017, 33% of the Company's revenues from Value Key Accounts (international customers excluding PSA and Opel-Vauxhall) were generated from non-automotive end-markets.
Pavel Ilichev, Vice President, Finance Strategy commented: "Capitalizing on the strong momentum across all divisions, the continued performance initiatives and a low level of debt, GEFCO is confident in its ability to deliver strong, profitable growth over the coming years by delivering on a clear and focused growth strategy centered around five pillars: consolidate FVL global leadership, expand auto inbound adjacent logistics segments, continue the development of 2nd hand car transaction services, further grow in non-auto verticals and continue developing new geographies trade lanes."
On July 3rd 2018, GEFCO signed an agreement to establish a joint venture with Bergé, a leading player in multimodal logistics services in Spain, to create a leading company in the Finished Vehicle Logistics market in Spain. The transaction received antitrust clearance on December 12th and is expected to close early in January 2019.
For the full year 2018, GEFCO expects consolidated revenue to be between €4.6bn and €4.7bn and Recurring EBIT to reach c.€160m. For the full year 2019, GEFCO expects revenue to grow by c.4.0% and Recurring EBIT to reach c.€200m. For the full years 2020 and 2021 (medium term targets), GEFCO expects an organic revenue CAGR of c.4.0% with Recurring EBIT margin expected to further improve by 50bps to 80bps over the period.
It is intended that the Company's governance post-IPO follows the recommendations of the AFEP-MEDEF Code. The Supervisory Board of GEFCO is expected to be composed of 7 members representing RZD, 1 member representing PSA, 4 independent members and 1 employee representative. Following the listing of the Company's shares on the regulated market of Euronext Paris it is expected that RZD will remain the Company's reference and controlling shareholder.
AVAILABILITY OF THE DOCUMENT DE BASE
GEFCO's Document de Base is available on the website of the Company (www.gefco.net) and will be on the AMF (www.amf-france.org) website too and is available free of charge upon request from GEFCO SA, 77/81, rue des Lilas d'Espagne, 92402 Courbevoie Cedex. GEFCO draws the public's attention to Chapter 4 "Risk Factors" of the Document de Base registered with the AMF.
ABOUT GEFCO GROUP
GEFCO is the European leader in automotive logistics and one of the top 10 global players in multimodal supply chain solutions. Building on 69 years of expertise and our 11,000 employees, GEFCO designs innovative and flexible solutions to meet the most complex supply chain challenges in all industry sectors. In 2017, the Group generated sales of €4.4 billion. With a presence in 47 countries and an integrated network, GEFCO serves 300 destinations worldwide across five continents. www.gefco.net
ABOUT RZD
Created in 2003, the Open joint stock company 'Russian Railways' (RZD) brings together advanced competencies and the latest technology in the field of rail engineering under a single brand. The company offers: suburban, cross-regional and long-distance passenger transportation services, locomotive and infrastructure solutions, logistics, freight forwarding solutions as well as large-scale infrastructure projects both in Russia and abroad. Present in over 40 countries with 750,000 employees, RZD features 85,000 kilometers of railway lines that transport more than 1 billion people and over 1.2 billion tons of freight annually.
ABOUT GROUPE PSA
Groupe PSA designs unique automotive experiences and delivers mobility solutions to meet all customer expectations. The Group has five car brands, Peugeot, Citroën, DS, Opel and Vauxhall, and provides a wide array of mobility and smart services under the Free2Move brand. Its 'Push to Pass' strategic plan represents a first step towards the achievement of the Group's vision to be "a global carmaker with cutting-edge efficiency and a leading mobility provider sustaining lifetime customer relationships". An early innovator in the field of autonomous and connected cars, Groupe PSA is also involved in financing activities through Banque PSA Finance and in automotive equipment via Faurecia.
FORWARD-LOOKING STATEMENTS
Certain information included in this press release are not historical facts but are forward-looking statements. These forward-looking statements are based on current beliefs, expectations and assumptions, including, without limitation, assumptions regarding present and future business strategies and the environment in which the Group operates, and involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements, or industry results or other events, to be materially different from those expressed or implied by these forward-looking statements.
Forward-looking statements speak only as of the date of this press release and the Group expressly disclaims any obligation or undertaking to release any update or revisions to any forward-looking statements included in this press release to reflect any change in expectations or any change in events, conditions or circumstances on which these forward-looking statements are based. Such forward-looking statements are for illustrative purposes only. Forward-looking information and statements are not guarantees of future performances and are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of the Group. Actual results could differ materially from those expressed in, or implied or projected by, forward-looking information and statements.
DISCLAIMER
This press release does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in France, the United Kingdom, the United States, Canada, Australia, Japan, the Russian Federation or any other jurisdiction. No communication and no information in respect of this press release or of the Company may be distributed to the public in any jurisdiction where a registration or approval is required. No steps have been or will be taken in any jurisdiction (other than France) where such steps would be required. An offer of securities in France would only be made after the delivery by the French Autorité des marchés financiers of a visa on the corresponding prospectus.
This announcement is not a prospectus within the meaning of Directive 2003/71/EC of the European Parliament at the Council of November 4th, 2003.
This document is not an offer for sale of securities in the United States. The shares, rights or other securities of the Company referred to in this document have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration thereunder. This press release may not be published, forwarded or distributed, directly or indirectly, in the United States.
The distribution of this press release is not made, and has not been approved, by an "authorized person" within the meaning of Article 21(1) of the Financial Services and Markets Act 2000. As a consequence, this information is only being distributed to and is only directed at (i) persons who are outside the United Kingdom, (ii) to investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 as amended (the "Order"), (iii) high net worth companies, or (iv) other persons to whom it may lawfully be communicated, falling within Article 49(2) of the Order (all such persons together being referred to as "relevant persons"). Any investment activity to which this document relates will be only available to, and will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents. This press release is not a prospectus which has been approved by the Financial Conduct Authority or any other United Kingdom regulatory authority for the purposes of Section 85 of the Financial Services and Markets Act 2000.
This document is not for release, publication or distribution in whole or in part in the Russian Federation. These materials do not contain or constitute an offer, or an invitation to make offers, sell, purchase, exchange or transfer any securities in the Russian Federation or to or for the benefit of any Russian person or any person in the Russian Federation, and do not constitute an advertisement of any securities in the Russian Federation and must not be passed on to third parties or otherwise be made publicly available in the Russian Federation. No securities of the Company have been, nor will be, admitted to public placement and/or circulation in the Russian Federation and may not be offered to any person in the Russian Federation except as provided by Russian law.
The distribution of this document in certain countries may constitute a breach of applicable law. The information contained in this document does not constitute an offer of securities for sale in Canada, Australia, Japan or the Russian Federation or any other country in which it would be contrary to the laws and regulations of that country. This press release may not be published, forwarded or distributed, directly or indirectly, in Canada, Australia, Japan or the Russian Federation or any other jurisdiction in which it would be unlawful.
View source version on businesswire.com: https://www.businesswire.com/news/home/20181220006030/en/
Contacts:
GEFCO
Corporate Finance Investor Relations
Cédrik Gallien
cedrik.gallien@gefco.net
+33 (0)1 49 05 23 91
NewCap
Emmanuel Huynh
gefco@newcap.eu
+33 (0)1 44 71 94 99
