Corporate News 24 Mar 2014

Sixt SE: Sixt increases earnings before taxes (EBT) by almost 16%

Sixt SE / Key word(s): Preliminary Results

24.03.2014 / 10:00

Sixt increases earnings before taxes (EBT) by almost 16%
to EUR 137 million

Consolidated operating revenue up by 6.2% to EUR 1.51 billion

Rental revenues climb 7.5%

Foreign business continues to see strong growth rates

Consolidated profit up by 19.2% to EUR 94.4 million

CEO Erich Sixt: “We generated record level results in 2013.”

Shareholders to receive dividend of EUR 1.00 per ordinary share and
EUR 1.02 per preference share (each including bonus)

2014 expected to see slight revenue increases and stable to slightly
higher EBT

Pullach, 24 March 2014 -Sixt, Germany’s biggest car rental company and one of the leading international mobility service providers, increased consolidated earnings
substantially in 2013. Earnings before taxes (EBT), the Group’s key success parameter, climbed 15.6% to EUR 137.1 million (2012: EUR 118.6 million), so that Sixt generated one of the best results in the company’s history and proved once more the Group’s sustainable earnings strength. The EBT-margin (in relation to consolidated operating revenue) went up from 8.3% in 2012 to 9.1% and is once again a top rating in the industry.
Consolidated revenue climbed 4.3% in 2013 to EUR 1.66 billion. Following difficult market conditions during the first half of the year, the driver for this good business performance was the dynamic growth of foreign operations, above all in the Vehicle Rental Business Unit.

Sixt communicated the preliminary key figures for financial year 2013 during the company’s annual press conference in Munich today.

Erich Sixt, CEO of Sixt SE: “We are very pleased with the business performance of 2013. We managed to exceed our original expectations significantly and generated a result that is on record level, despite the start-up losses for key strategic growth initiatives. Our focus continues to be on the extension of operations abroad with the expansion in the US making good progress. Sixt also gained substantial market shares in key European markets, such as France and Spain. We want to continue on this track in 2014.”

Sixt Group’s revenue and earnings development in 2013

Rental revenues increased 7.5% to EUR 1.03 billion (2012: EUR 953.7 million). Sixt recorded strongest gains in its foreign operations, which climbed 18.9% to EUR 414.9 million (2012: EUR 349.0 million). 41% of rental revenues were therefore generated outside of Germany (2012: 37%). Next to the US, pleasant double-digit growth rates were recorded above all in France and Spain. Domestic rental revenues rose slightly by 1.0% and with increasing momentum over the course of the year to EUR 610.7 million (2012: EUR 604.7 million).

Leasing revenue amounted to EUR 391.8 million in 2013, a gain of 2.3% on 2012 (EUR 382.9 million). Positive impulses came from a substantial growth in the contract portfolio, above all in the fleet management and private customer leasing segments.

Consolidated operating revenue (excluding revenue from the sale of used leasing vehicles) rose 6.2% to EUR 1.51 billion (2012: EUR 1.43 billion). The international share of operating revenue continued to increase to 34% (2012: 31%).

– The Group’s total consolidated revenue climbed 4.3% to EUR 1.66 billion
(2012: EUR 1.60 billion).

Consolidated earnings before taxes (EBT) rose 15.6% and thus clearly outperformed revenue growth. At EUR 137.1 million EBT was on a record level. As was already communicated, the result includes start-up losses for such growth initiatives as the expansion in the USA or the carsharing joint venture DriveNow.

– The consolidated profit after taxes came to EUR 94.4 million, a plus of 19.2% (2012: EUR 79.2 million).

Key drivers for the Group’s encouraging earnings performance in 2013 were:

– Substantial growth of foreign business,

– tangible market upturn as from the summer 2013, resulting in the strongest Q3 in company history,

– accelerated marketing and sales activities in the private and business customer segment as well as

– sustainable improvement in the financing conditions of the Group.

Excellent equity base
As at reporting date, 31 December 2013, Sixt’s equity had risen by 6.7% to EUR 675.5 million (2012: EUR 632.8 million). The equity ratio came to 28.5% (2012: 29.1%), and thus remained substantially higher than the average for the rental and leasing industry in general.

Dr. Julian zu Putlitz, CFO of Sixt SE: “Sixt’s net asset and financial structure is rock solid. Our consistent finance management has earned us a reputation with investors and banks as reliable partner. This puts us more and more in a position, where we can refinance our strategic and operative measures at attractive conditions.”

High distribution ratio of 51% proposed
For the Annual General Meeting on 3 June 2014 the Managing Board of Sixt SE proposes to its shareholders to resolve paying a dividend for fiscal year 2013 of EUR 0.65 per ordinary share (2012: EUR 0.55) and EUR 0.67 (2012: EUR 0.57) per preference share as well as a bonus dividend of EUR 0.35 (2012: EUR 0.45) for both share categories. This would result in total payouts of EUR 1.00 for ordinary shares and EUR 1.02 for preference shares. The proposed total distribution of EUR 48.4 million would be on a par with the high level of the previous year. In relation to consolidated profit the distribution ratio would come to 51%.
With this proposal Sixt is maintaining the principle of a shareholder-friendly dividend policy. At the same time the Group is strengthening its financial leeway to continue realising its growth targets.

Vehicle value of investments increased
In 2013 Sixt stuck to its cautious and demand-oriented policy of investment in its fleet. Over the full year a total of 154,400 vehicles, or 0.5%, were added to the rental and leasing fleet in Germany and abroad (2012: 153,600 vehicles).
The value of the added vehicles increased stronger by 4.9% to EUR 3.87 billion (2012: EUR 3.69 billion). This reflects the focus Sixt places on premium vehicles with high standard of features. The share in value of the vehicle fleet taken up by BMW, Mercedes-Benz and Audi climbed consistently to almost 60% last year.

Outlook for financial year 2014
Over the last months the economic conditions in Europe and the USA have improved and are generally having a positive effect on the demand for vehicle rental services. On the other hand, Sixt reckons that fleet costs and other operative expenses are likely to increase in 2014 for the Vehicle Rental Business Unit. For the Leasing Unit Sixt expects to see a moderate upturn in demand.

Against this background the Managing Board expects for 2014 to generate a slight increase in consolidated operative revenue compared to the previous year. Growth stimulus should once again come predominantly from the markets abroad. On the basis of a continued demand-driven and cautious fleet policy and a consistent cost management the aim is to achieve a stable to slightly higher Group EBT.

Developments in the operating business units
Vehicle Rental
In the core markets of Western Europe and the US Sixt operates its own subsidiaries (Sixt-Corporate Countries). In the remaining European countries and the other regions of the world, the company is represented by an extensive network of franchisees. At the end of 2013, Sixt had 2,067 rental offices worldwide (corporate and franchise), which was a plus of 97 stations against last year.

In fiscal year 2013 Sixt continued to expand its activities in the US started in 2011.
Alongside new company-owned stations the first stations by franchise partners were also opened. As at year end of 2013, Sixt already had 26 rental stations in the world’s biggest rental market in nine federal states (2012: 12 stations).

The premium carsharing service DriveNow is developing more and more dynamically. In 2013 it won around 140,000 new customers with the number of registered users almost tripling. The joint venture is managed together with BMW and already has 250,000 members across five German sites. The start of DriveNow in Hamburg at the beginning of November 2013 was highly successful.

The rental revenues for the Vehicle Rental Unit increased 7.5% in 2013 to EUR 1.03 billion (2012: EUR 953.7 million). Outside of Germany Sixt recorded gains of 18.9% to EUR 414.9 million (2012: EUR 349.0 million) with all foreign subsidiaries, apart from the US, making a positive contribution to earnings. The Business Unit’s total revenue climbed 7.6% to EUR 1.12 billion (2012: EUR 1.04 billion). The average fleet size of the Vehicle Rental Business Unit in the Sixt-Corporate Countries climbed around 2% to 78,000
vehicles (2012: 76,800 vehicles).

The Business Unit’s earnings before taxes (EBT) rose 15.0% and above average to revenue to EUR 122.3 million (2012: EUR 106.4 million). This way the return on sales was 0.7 percentage points up to 10.9%.

Sixt Leasing is one of Germany’s largest vendor-neutral, non-bank full-service leasing companies, whose range of services extends not only to classic finance leasing but also to a broad selection of products and services for efficient fleet management. Sixt thereby enables its customers to reduce their mobility costs over the long term.

In 2013 Sixt Leasing registered a successful business performance and developed better than the industry as a whole. The number of leasing contracts in the Sixt-Corporate Countries rose by 22.5% to the year end, up by 14,000 to 76,200 contracts. This encouraging development is primarily due to more contracts in the fleet management and
private customer leasing segments.

Leasing revenue for 2013 was a slight 2.3% upturn from the year before from EUR 382.9 million to EUR 391.8 million. The Business Unit’s total revenue (including the usually fluctuating revenue from the sale of used leasing vehicles) amounted to EUR 534.7
million (2012: EUR 545.7 million; -2.0%). Earnings before taxes (EBT) climbed strongly by 28.8% to EUR 21.0 million (2012: EUR 16.3 million), improving the return on sales by 1.1 percentage points to 5.4%.

Note: As announced, Sixt Group’s attested and final Annual Financial Statements for 2013 will be published on 22 April 2014.

Further information:
Sixt SE
Frank Elsner
Sixt Central Press Office
Phone: +49 – 5404 – 91 92 0
Fax: +49 – 5404 – 91 92 29


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