How has the Europcar Group got through this very special year, 2020?
Cédric Douls - Covid came along in March, after two months that were extremely positive for us in January and February. Everything collapsed, as it did for everyone else. So we had to face up to the situation with drastic measures to cut costs and reduce the fleet, while at the same time working on the strategic reorganisation of the Europcar Mobility Group. Our precedent strategic plan, "Shift 2023The plan was to increase sales from three to four billion euros a year. We had to rebuild everything. So from the beginning of March, we had to launch very short-term action plans, while at the same time rebuilding a strategic plan. This plan is called "ConnectIt is focused on the customer and their needs. As far as business travel is concerned, this means flexibility, speed and efficiency for business travellers.
Are you confident about the future? Is the Europcar group saved?
Cédric Douls - Yes, we're a lot calmer at the moment. Even more so with the announcement that our Group has just made! With this agreement, which will make it possible to reducing our debt and a significant injection of new cashIn this way, both our Group and our 'Connect' plan are supported. So we're in a good position to benefit fully from the market recovery when it comes. We can't say that we're past the crisis, Covid is still with us, we're in a second phase of confinement, but one that's more flexible, and I think that the hardest part is behind us. And with our various initiatives, the fact that we've refocused on the customer, and the development of tailored offerings that meet 100%'s new needs, we're even more confident every day.
More generally, how do you see the rental market emerging from the crisis? Should we expect bankruptcies and mergers?
Cédric Douls - It's too early to say. During the crisis, we saw that many short-term hire companies that had weathered the storm better, that had seen their business decline in a measured way, were the ones that had the greatest impact. local rentersThanks to their regional coverage, without the fixed costs of a large structure like Europcar. What is certain is that the future of the sector, of our market, is positive and sustainable. Today, mobility is the Ranked 2nd in global GDP. At 2030This sector will become the world leader in terms of GDP. The COVID crisis may slow this trend down a little, but overall the need for mobility is exponential and owning a vehicle cannot be the only answer to these needs. So vehicle hire - whether for an hour, a day, a week, a month or more - has a bright future ahead of it!
How busy are you today?
Cédric Douls - At the height of the crisis, we experienced weeks of -80%, -85%. It was colossal. But we shouldn't have to end the year in such proportions! This can be explained by the very good first two months of the year, and by the recovery we've seen since the first confinement was lifted. The business that is holding up particularly well for us is our van hire periods of confinement, whatever the country in Europe, have helped to intensify the development of the e-commerce and home deliveries, which has a direct and positive impact on our business.
The private car must be more reassuring than other modes of transport in terms of health...
Cédric Douls - Of course it is. All the studies show that the notion of safety is the most important point for our customers, even before price, which usually takes precedence in many sectors. And there's nothing safer than being alone in a car, especially in times of health risk. It was to meet this priority need that we launched our "Safety Program from the very beginning of the Covid crisis: it's a programme that strengthens the hygiene measures and cleaning products that we use in our stations and in our vehicles. At the same time, we launched the One Sustainable Fleetwhich aims to achieve 30% of our fleet electrified by 2023 on a global scale, because we need to achieve reconciling the concept of safety with that of sustainability. Governments are pushing manufacturers in particular, via the CAFE Corporate Average Fuel Economy (CAFE) standards, to drastically reduce CO2 emissions. So we've decided to be ahead of the game on this issue, which requires a huge amount of change: it's not just about buying electric vehicles, it's also about being able to recharge them. That's why we recently signed an agreement with NewMotiona Shell subsidiary, to develop charging stations. Customers will be issued with a card for recharging their vehicle throughout NewMotion's extensive European network.
The group's other new product is Long term solutions ...
Cédric Douls - Whether in the business or leisure segment, and particularly in the context of the health crisis, the movement is gathering pace to make a real and lasting shift from vehicle ownership to use. In fact, I include long-term leasing in 'car ownership', because when you come right down to it, leasing a car for 36 or 48 months is a real commitment. A player like Europcar Mobility Group is very strong on flexibility, responsiveness and logistics. And it fits in perfectly with what we're already seeing, namely access to a vehicle for convenience, and for a notion of service and use. With Long term solutions, we're pushing to the limit what we're already doing with our long-term leasing offers, but here with the least possible commitment and the greatest possible flexibility. In other words, a one-month commitment, at the end of which the customer, whether B2B or B2C, has the right to do what they want. It's the most flexible solution possible, and one that responds to the current economic uncertainty, which will unfortunately persist for some time. There are a number of social shock absorbers that complicate the reading of the economic landscape. And for a long time there will be a uncertainty Will the recovery be cyclical or structural, and therefore lasting? These Long term solutions respond to this uncertainty.
Has the health crisis prompted you to speed up the digitalisation of the customer journey?
Cédric Douls - Yes, we have launched system pilots Key'n go and we're going to roll it out everywhere, on a country-by-country basis. This is a digital, contactless, counterless routefor reasons of security but also speed and customer service, because this corresponds to a real demand, particularly from business customers. And this demand will accelerate with the health crisis, including for leisure customers.
How is a player like Europcar Mobility Group positioning itself on the MaaS (Mobility as a Service) issue?
Cédric Douls - We have a comprehensive offering that is unique in the market. We're probably the only company today that can offer vehicle hire for a few hours, thanks in particular to the UbeeqoIt's just a few months or even a few years away. In people's minds, these vehicles are on the street in car sharing, but Ubeeqo is also about mobility creditWe also offer chauffeur services with Brunel. We also have chauffeur services with Brunel, short-term rental through our various brands and longer-term rental offers, which are now more flexible with Long term solutions. Our Group defines itself as a mobility service company. Our core business is service and we don't see mobility any other way. So I'd say that Mobility as a Service is in the DNA of the Europcar Mobility Group.
Could you diversify your activities further, perhaps through new partnerships?
Cédric Douls - Never say never, but for the moment there is no compelling need to do so. We already have a comprehensive offering, so there's no 'hole in the wall'. We are forging partnerships, like the one we have with Telefonica and Geotab on our Connected Fleet programme, or with NewMotion for electric charging stations. We also signed a partnership a few months ago with Bureau Veritas: they are helping us to assess our practices as part of our Safety Program. Any partnership has to be a win-win situation, and this is the case.
