Management report
on the consolidated accounts for the 2023 financial year
Dear Sir or Madam,
We have the pleasure of presenting to you the consolidated accounts of the Interparking Group as per 31 December 2023.
The 2023 results are up sharply compared to 2022 in terms of both revenue and EBITDA.
Overall, the Group’s consolidated revenue, excluding non-recurring items, rose from €481.4 million in 2022 to €543.9 million, corresponding to, an increase of 13.0%.
The Group’s consolidated EBITDA in 2023 amounted to € 229.9 million compared with € 212.7 million in the previous year, corresponding to, an increase of 8%.
The Group has invested more than €100 million in its growth, mainly to complete major construction projects, acquire new car parks, extend its EV charging network, and reinforce its IT structures.
In Belgium, we have merged two companies, Parking Kouter and Parking Monnaie, into Interparking. The Group also acquired, via asset deal, its partner’s shares in Interparking-Vesting and now owns 100% of the shares of that company. To offer local and quality parking solutions, we have acquired the Chazal car park in Brussels (Schaerbeek) which offers easy and convenient access for residents and visitors to the municipality, helping to reduce traffic congestion in the surrounding streets.
During the past year, in Italy, the Group’s further developed its partnership with the San Donato Group (a leading hospital group in Italy) which allowed to start the operations of several new hospital car parks. To simplify administration and the Group structure, Interparking Mestre Stazione and Bergamo Triangolo Parking were both merged into Interparking Italia.
In France, the Group’s position has been strengthened thanks to the opening of the Armagnac car park in Bordeaux, which is part of the Woodstone urban project. This futuristic building complex, currently under construction, aims to combine modernity and respect for the environment. The French subsidiary of the Group has also acquired, via asset deal, three additional car parks in Paris.
The Polish subsidiary continues to expand at Gdansk Airport, but also in the cities of Gdansk itself and in Warsaw.
In Germany, thanks to our strong partnership with the railways, the Group are now managing new station car parks in several small towns. The Group also entered a joint venture with McParking. McParking occupies a leading position in the segment of the off-terminal car parks at Berlin Brandenburg Airport.
Including new acquisitions and taking into account expiring contracts, as of 31 December 2023, the Group operated 1,009 sites in 401 cities in nine European Union countries and managed more than 433,000 parking spaces. This compares to 1.011 sites and 432,000 parking places at the end of 2022.
The Group continued to invest in order to optimize the customers’ digital experience. A digital version of the Pcard+, the Pcard App, has also been launched, which enables users to quickly identify which car park to go to, depending on their points of interest, and replace the physical card by a digital one directly accessible on the smartphone.
The number of Pcards grew by over 23% compared to 2022, further demonstrating the client expectations for digital products.
To reduce the impact of mobility on the environment, the Group promotes the Pcard as an intermodal tool compatible with public transport.
The Group continued investing to improve the quality of our car parks. By the end of 2023, 255 of the Group’s car parks had been awarded the ESPA quality label granted by the European Parking Association (EPA), whereof 36 were “Gold” labelled. This is an increase of 12 car parks compared to the previous financial year.
To support the transition to low-polluting vehicles, Interparking is increasing the number of charging stations for electric and hybrid vehicles in its car parks. The number of parking spaces equipped with charging stations has increased by more than 58% to exceed 3.818 spaces at December 31, 2023.
The Group has been fully CO2 neutral since 2015, thanks to its energy consumption savings and green energy supplies. In 2022, Interparking continued to invest to reduce the environmental impact of its activities. At the end of 2023, the Group had over 126 fine particle neutralisation units, which we call “Lungs in the city”. We have also entered new “green” financing agreements that foresee lower interest rates if specific Environmental Social Governance (ESG) parameters are met.
Finally, the Group participates in the Global Real Estate Sustainability Benchmark (GRESB) since 2021. The GRESB is an international certification that evaluates and compares the ESG performance of stakeholders in the real estate and infrastructure sector. The Group obtained a score of 85%.
Net financial costs, were €39.8 million in 2023, compared with €33.5 million in 2022.
The Group’s net debt excluding IFRS16 was €814 million at the end of 2023. We also recently renewed several loans and are in negotiations for the renewal of several other credit lines maturing in 2024. As expected, our net debt to EBITDA ratio reaches 5.2 at the end of 2023.
Interparking limits the rate risk inherent to its financial debt via interest rate hedging instruments. In a volatile financial market characterized by instability and fluctuating interest rates, the Group is well protected by a debt that is 85% hedged against interest rate variations.
Profit before tax were €54.4 million in 2023 compared to €53.5 million the previous year. In 2023, the Group’s profit attributable to the owners of the company was €36.0 million, compared with €34.4 million in 2022.
Lastly, with respect to risk, the Group analyses and closely tracks changes in mobility which could potentially entail a risk for the operation of certain car parks. More specifically, the Group could be impacted by certain mobility and parking trends, such as reductions in access to city centres, or the promotion of alternative transport means. The Group’s development strategy is thus focused both on major European cities and other quality cities.
The Group anticipates and tracks these changes jointly with its “upstream” customers and aims, within this framework, to strengthen its collaboration with cities, notably through the promotion of parking guiding systems, the development of bicycle parking facilities, and proactive participation in the policy to move parking from the street to off-street car parks.
Aware of its social responsibility, the Group continued to support various social, cultural and sporting initiatives during the past year.
No major event has occurred since the accounts for the 2023 financial year were closed that would be such as to have any significant effect on the Group’s financial situation and results.
Brussels, 1 March 2024
The Board of Directors