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M. Friedrich Schock | Chief Executive Officer of APCOA |
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2008 marked a major milestone for APCOA with the implementation of a new management and a new organization by region. The Group’s growth remained buoyant with new contract acquisitions, in particular.
All teams are now geared towards 2009 and the set up of two large-scale projects: first, a costs savings program aimed at adapting the cost structure to the current economic climate, and second, a broad project to redefine APCOA processes in order to sharpen the Group’s competitive edge and long-term growth.
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APCOA - European leading paid car park operator |
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Located in Stuttgart, Germany, the Company was
founded in 1970 and acquired by Eurazeo in April 2007.
Wherever APCOA operates, its brands and franchise are
synonymous with top quality parking services for both car
park owners and motorists.
Since its creation, APCOA has been a full car park
operator with the principle of not owning any car park. By
removing this need for any significant investment as well
as maintenance investments in corresponding buildings,
the operating model allows the company to combine low
capital intensity and long-term cash flow visibility.
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A resilient business model
APCOA has a long-term, secure portfolio of contracts that is diversified geographically and in terms of market segments. The average duration of existing APCOA contracts (including renewals) is 16 years, with an average outstanding life of more than 7 years. APCOA has a remarkable retention rate for long term contracts of more than 90%.
APCOA benefits from macro-economic factors, such as the continuous high demand for parking space, the trend towards individual mobility, the outsourcing of parking services and the replacement of free parking with paid parking. The current financial crisis encourages car park owners to select larger and more experienced operators, which contributes to the development of APCOA’s activity.
The car park is often the “first and last impression” that the user has when he goes to a shopping mall, an exhibition, a hotel or to the airport. As a result, APCOA has developed quality-related initiatives and has created a Corporate Architecture Manual which serves to show car park owners the “attention paid to their customers”. In addition to efficient and safe operation, APCOA’s objective is to make the car park a premium product that fully meets the user’s needs.
In addition, APCOA implements a “controlled expansion” strategy in the emerging markets of northern, eastern and south-eastern Europe.
Good resilience and new commercial momentum
APCOA reported revenues of 642.1 million euros in 2008, up 9.0% versus 2007. At constant scope and exchange rates, and adjusted for the new accounting of the BAA (British Airport Authority) contracts, APCOA had an increase in revenues of 5.3%.
Adjusted for exceptionals, EBITDA increased by 8.7% in 2008, rising from 57.5 to 62.5 million euros. At constant exchange rates, it grew by 11.3%. At constant scope and exchange rates, the growth in EBITDA from 2007 to 2008 is estimated at 2-3%. Although the unstable economic environment in the 2nd Half did have an impact on APCOA in certain segments of the market, such as airports (mainly in Germany and in Norway) or shopping centers, APCOA still managed to maintain growth over the full year thanks to a good performance from segments such as hospitals and some city centers, as well as new contract wins in various countries.
EBITDA due to new contracts increased by over 100% in 2008 compared to 2007, in particular thanks to large contracts in Germany and the United Kingdom, where the renewal of the management team at the start of 2008 enabled APCOA to regain commercial momentum and win significant contracts such as the one for London’s Luton Airport.
New projects to cope with the economic slump
To cope with the economic downturn, while preparinglong-term growth, APCOA has launched two projects:
“Zero Base Redesign” and “PRO”. “Zero Base Redesign” is aimed at modernizing APCOA procedures, in order to improve their operational efficiency through the use of cutting edge technologies and new services such as Internet pre-booking. “PRO” is a program to rationalize administrative expenses and designed to adapt the Group’s costs structure to the current economic environment.
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In 2009, APCOA expects buoyant growth of new contracts in the Group’s different regions, and will grab any opportunity that allows it to penetrate a new high potential market such as the Middle East. However, the current economic slump will continue to have a negative impact on the existing portfolio, particularly at airports and shopping malls.
Key figures
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| (In million euros) |
2007(1) |
2007(2) |
2008 |
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12 months
HGB |
12 months
IFRS |
12 months
IFRS |
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| Revenues |
589.8 |
588.8 |
642.1 |
| Change |
+ 20.5 % |
n.a. |
+ 9.0 % |
| EBITDA |
58.4 |
57.5 |
65.6 |
| EBITA(3) |
44.4 |
43.4 |
50.6 |
| Spaces (in thousands) |
1,200(2) |
1,200(2) |
1,241 |
| Locations |
4,115 |
4,115 |
5,494 |
| Office and sales employees |
4,700 (2) |
4,700 (2) |
4,600 |
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| (1) German pro forma accounting standards. (2) Pro forma 12 months. (3) Before goodwill amortization and customer contracts. |
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Consolidated balance sheet as of December 31, 2008
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ASSETS |
LIABILITIES AND SHAREHOLDERS’ EQUITY |
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| Intangible assets |
863.2 |
Subscribed capital |
- |
| Plant, property and equipment |
77.0 |
Reserves |
393.8 |
| Deferred tax assets |
8.9 |
Retained earnings |
(191.2) |
| Other non-current assets |
9.7 |
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| Non-current assets |
958.8 |
Shareholders’ equity |
202.6 |
| Inventories |
0.4 |
Debt |
609.3 |
| Trade and other receivables |
36.3 |
Provisions |
10.3 |
| Other current assets |
24.4 |
Deferred income tax liabilities |
68.9 |
| Cash and cash equivalents |
65.9 |
Other non-current liabilities |
3.5 |
| Current assets |
127.0 |
Non-current liabilities |
691.0 |
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Trade payables |
77.4 |
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Debt |
60.7 |
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Other current liabilities |
46.8 |
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Other provisions |
6.2 |
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Current liabilities |
191.2 |
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| TOTAL ASSETS |
1,085.8 |
TOTAL LIABILITIES AND EQUITY |
1,085.8 |
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Although APCOA has limited leeway since it does not own the car parks that it manages, it has nevertheless set a certain number of environmental and social goals for the entire Group. They include in particular:
- Strengthening customer safety;
- Improving the working conditions of employees;
- FTraining staff to work with an environmental and responsible mindset;
- Reducing energy use and costs, while maintaining an equivalent service quality;
- Minimizing the impact of the Group’s activities on the environ.
In the context of this policy, numerous initiatives were set up by car park operators: renovation of places to enhance the safety of employees and customers, repainting with bright colors to reduce the quantity of artificial lighting required, automated cash registers, easy and continuous assistance, low-energy lighting systems through the installation of more timers on lights and motion sensors….Significant initiatives have also been carried out to reduce the Group’s impacts on the environment through monitoring carbon emissions, and energy savings.
Everywhere in Europe, countries have vigorously embraced the implementation of sustainable development measures:
- In Austria, parking meters are powered by solar energy;
- Norway and Austria have developed park-and-bike facilities in certain car parks. Selfservice battery recharging terminals are provided for electric vehicles;
- In Norway and in Germany, washing products for cars and car parks are environmentally-friendly and biodegradable;
- In Austria and in Germany, a car-pool system has been created in a number of car parks;
- In Austria, the training given to staff has resulted in a lower number of accidents.
Other projects are still in the pipeline, they include the installation in the Netherlands of a lawn-covered “green” roof on top of offices next to a car park.
For upcoming years, APCOA pledges to guarantee an increasingly safe working environment for its employees, as well as safer and more hospitable locations for its customers.
The UK: APCOA’s sustainable development spearhead
The UK is the first country to develop a formal sustainable development policy in the Group. The policy focuses on ethical, and socially-responsible attitudes, with specific recommendations on compliance – or even surpassing – legal criteria, correct stewardship and thrifty use of rare resources, choice of suppliers offering environmentally-friendly goods and services… More generally, the environmental criteria must be integrated in all decisions, upstream and downstream, and on the entire value chain.
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