2020 results – LOXAM confirms the pertinence of its business model and continues to pursue its safety and environmental initiatives

PARIS – Amidst an unprecedented health crisis with the COVID-19 pandemic, the French Group LOXAM progressed in many areas in 2020. The environmental and energy transition of its equipment fleet, its CSR policy initiated in 2015* and submitted to the scrutiny of major rating organisations, its priority policy of improving safety, the quality of its customer relations, the development of new health activities with LOXAMED, the follow-up to the acquisition of Ramirent in 2019, and its policy of recruiting young people, were all examples of the Group’s improvement in 2020. With a turnover of €2 billion, LOXAM stayed in profit and reduced its debt. This offers evidence of the quality of its model, which combines substantial decentralisation with the powerful commitment of its people.

2020, ‘THE COVID YEAR’ UNDER THE BANNER OF AGILITY AND RESILIENCE

In this disrupted year, marked by a period during which branches operated on-call for part of March, LOXAM firstly singles out the unwavering mobilisation of all its employees through the Business Continuity Plans (BCP) and Business Resumption Plans (DRP). These plans were supported by more digitalized procedures for rental operations, from booking to return of equipment. “Initially working urgently for priority sectors such as health and energy, public transport, telecommunications and food distribution, LOXAM’s mobilisation then extended to all of its clients, key accounts, SMEs, VSEs and tradesmen when they resumed their activity,” comments Gérard Déprez, Chairman of LOXAM. “This year’s complex Covid experience once again highlighted the agility of all the Group’s teams and their ability to mobilise, as well as the strength of our local organisation,” adds Stéphane Hénon, Group Managing Director.

Among the highlights of 2020:

• the creation of the LOXAMED health subsidiary to design Mobile Diagnostic and Screening Units (MDSU) in response to Covid screening needs,
• the acceleration of the digitalisation of rental processes,
• the ‘Customer Service of the Year’ award (ESCDA) won for the fourth consecutive year, as well as a record level of customer satisfaction with an NPS of 60,
• the opening of a new LOXAMCITY Aubervilliers-Porte de la Villette branch in Paris,
• LOXAM’s partnership (block release apprentices) with Worldskills France,
• its commitment as official sponsor of the Rugby World Cup France 2023.

TURNOVER OF €2 BN

At the end of a difficult 2020 for all economic players, the LOXAM Group retained its position as leader in equipment rental, No. 1 in Europe and No. 4 worldwide. Operating in 30 countries on 4 continents, the Group has a network of 1,050 branches and 11,050 employees.

In 2020, LOXAM posted a consolidated turnover of 2 billion euros and an EBITDA equal to that of 2019, amounting to 37%, while obtaining a reduction in its net debt. On the export front, LOXAM performed well, generating 59% of its 2020 turnover internationally (56% on the European market, 3% internationally outside Europe). It offers its clients Europe’s largest fleet of over 650,000 items of equipment, as well as the world’s third largest powered access fleet. In France, LOXAM’s turnover reached €803M (41% of its total turnover), marked by a significant temporary drop during spring, when the health crisis had just broken out.

Its diversified clientele in the construction (43%), non-construction (40%) and public works (17%) sectors and the diversification of its product offering (powered access, modular shelters, earthmoving, handling, energy, small equipment, compacting, etc.) proved to be particularly useful assets during this very singular period.

A CSR POLICY INITIATED AND REINFORCED ON SAFETY AND ENVIRONMENTAL ISSUES

As the driving force behind LOXAM’s mobilisation throughout 2020, this dynamic policy sets the course for the Group’s ecological, social and societal transition, which will be accelerated in 2021.

Safety, a duty always and everywhere, under the banner of IoT

“For LOXAM, it was out of the question that Covid be allowed to hamper its long-standing commitments (going back more than 50 years) and its pioneering achievements in co-innovation in terms of safety. This is a priority that, as a rental company, we will never compromise on,” emphasises Olivier Grisez, LOXAM’s Managing Director for France.

Among the major achievements in 2020:

• Rewarding all its previous efforts, all the branches in the LOXAM network received ISO 45001 certification, the first international standard relating to the safety management system. LOXAM is the first rental company to obtain this certification.
• In a shared innovation dynamic with Bouygues Construction and Manitou, LOXAM developed the LOXSAFE safety pack (IoT). The Manitou telehandler is the first item of equipment to be fitted with this device, which detects potentially dangerous situations and warns the operator and people around the machine by replicating the alarm to the outside world and by SMS.
• A new, safer fleet of machine delivery trucks is being deployed, with 15% of vehicles having already been renewed. They are notably equipped with a new retractable secure gangway with guardrails.
• The 3rd edition of LOXAM’s Safety Meetings, in partnership since their creation with the French building occupational health and safety agency OPPBTP, brought together nearly 200 participants at Station F (reduced capacity in compliance with health regulations). The theme: anticipating risks and stimulating innovation to benefit health and safety. Environment: acting on multiple levels for its preservation

⇨ A carbon footprint with only 6% direct emissions “As part of our CSR approach, in 2020 we calculated the carbon footprint of our activities in France to assess our impact on the environment, analyse our sources of emissions and formalise our ambitions in terms of reducing our carbon footprint in order to comply with the Paris Climate Agreement. This is the first time we have done this,” says Alice Hénault, LOXAM’s Director of Foresight and Development. Of the 590 KT of CO2 emitted in France, 6% are direct emissions and 94% indirect emissions. Three quarters of the emissions come from three main sources: emissions from equipment when used by clients (63%), emissions from equipment delivery trucks (8%) and emissions from Loxam branches (4%). (Source: Cabinet Carbone4). LOXAM has already undertaken several concrete initiatives to reduce its carbon footprint. On the logistics side, by pooling the transport operations of its branches in major cities, Loxam is reducing its CO2 emissions by more than 10%. For branches, LOXAM has signed a contract with EDF for the supply or biomethane gas produced in France. This contract will come into effect next year and will cut the heating emissions of the 150 branches heated with gas by 80%.

⇨ A proactive policy to promote equipment running on powertrains other than all-diesel or petrol: the LOXGREEN range In terms of equipment, Loxam has invested in a range of 12 models of equipment with engines other than 100% diesel or petrol. This equipment offers the same performances as diesel versions, while being more energy efficient, cleaner and quieter, and less harmful to health (with less vibration, dust and particulate matter). This equipment is brought together in the LOXGREEN range, which covers a range of equipment in demand, from the lighting mast (battery-powered) to the tipper truck (with a gas engine and soon an electric one), not to mention the electric mini-excavator (2.5T) or the hybrid aerial platform (20m).

Equipment such as the 1.95T JCB 19C-1E electric mini excavator and the 20m HA20 LE PRO hybrid-powered aerial work platform are perfect examples of the energy and environmental transition to which LOXAM’s equipment fleet is committed. Both have the same operating performance as their diesel equivalents, emit no CO2 at point of use, and are much quieter than their diesel counterparts.

 

“Through LOXGREEN, we want to work with our clients to be more environmentally aware during their work and use of equipment. Together with our suppliers, we provide concrete solutions for green-labelled or eco-worksites, in public places, quiet urban areas or low-emission areas (hospitals, schools, out-of-hours worksites, etc.).

This equipment is high-performance and energy-efficient, and cares for both the environment and people’s health,” adds Alice Hénault. LOXAM is ISO 14001 certified and has been engaged in this carbon path for several years already, working in lockstep with manufacturers, the construction industry and local authorities.

This is an essential and major CSR commitment. (*) Date at which LOXAM signed the UN Global Compact.

 

About LOXAM

N° 1 in Europe and n° 4 worldwide, LOXAM is the market leader for the rental of equipment and tools for building and public works, industry, landscaping and services. With revenue of €2 billion in 2020, 1,050 branches and 11,050 employees, the LOXAM Group is established in 30 countries in Europe and has the largest machine fleet on the market, with more than 650,000 items of equipment to anticipate, support and fulfil growing demand from companies that wish to outsource the procurement, management and maintenance of their equipment.

www.loxam.com