Sixt plans record dividend for record year 2015
- Consolidated operating revenue gains 17.9% to EUR 1.94 billion on the back of dynamic foreign growth and additional growth in Germany
- International share in total rental revenue reaches 49%, USA becomes biggest foreign market
- The mobility service provider improves 2015 consolidated earnings before taxes (EBT) by 18.0% to record total of EUR 185.2 million
- Payout to increase significantly to EUR 1.50 per ordinary share and EUR 1.52 per preference share (each including a special dividend)
- Successful IPO of Sixt Leasing AG opens up additional long-term growth opportunities for both the vehicle rental and leasing business
Pullach, 15 March 2016 – The Sixt Group recorded a very successful fiscal year 2015, which was characterised by record figures for revenue and earnings, major steps forward in the expansion outside Germany as well as the successful IPO of its subsidiary Sixt Leasing AG. At EUR 185.2 million, consolidated earnings before taxes (EBT) once more achieved a record best in the Company’s history and gained 18.0% year-on-year. At EUR 1.94 billion, consolidated operating revenue from rental and leasing business (excluding revenue from the sale of used leasing vehicles) was 17.9% higher than the year before. Shareholders are to benefit from the encouraging business development, which clearly outperformed original expectations, through a substantially higher dividend, which will result in the dividend payout increasing by 25%.
Sixt communicates the preliminary key figures for the 2015 consolidated financial statements during the Company’s annual press conference in Munich today.
Erich Sixt, Chairman of the Managing Board of Sixt SE: “In the preceding fiscal year Sixt once more set a new benchmark. Business performance clearly exceeded our own expectations and led to new record revenue and earnings figures. At home and abroad, our Group developed significantly more dynamically than the wider mobility markets, and we were able to gain further market shares. Through the stock market listing of Sixt Leasing AG in May 2015, we have set the course for placing the growth we expect in both business units, Vehicle Rental and Leasing, on a solid financial platform. I am confident that Sixt will continue its highly satisfying development in 2016.”
Group development in 2015
- Consolidated operating revenue (excluding revenue from the sale of used leasing vehicles) climbed 17.9% to EUR 1.94 billion (2014: EUR 1.65 billion). The growth driver was the Vehicle Rental Business Unit, above all thanks to the ongoing expansion in Western Europe and the USA, so that foreign business operations for the first time scaled the 40% barrier, with a share of 40.8% in revenues (2014: 35.3%).
- Rental revenue increased 23.0% to EUR 1.38 billion (2014: EUR 1.12 billion). Demand from business and corporate clients as well as private customers expanded over the course of the year and as a whole was well above expectations. With a 10.9% gain in rental revenues in Germany, the Sixt Vehicle Rental Business improved its position as market leader even further. On foreign markets, the Company generated strong growth of 38.5%, so that the 49.2% share of rental revenues generated abroad accounted for almost half of the total (2014: 43.7%).
- In 2015, leasing revenue increased slightly by 0.6% to EUR 419.8 million (2014: EUR 417.3 million), which was in line with Sixt Leasing AG’s strategy of generating qualitative and strictly earnings-oriented growth.
- Total consolidated revenue climbed 21.3% to EUR 2.18 billion compared to EUR 1.80 billion the year before.
- The Group’s profit before taxes (EBT) reached a new record figure of EUR 185.2 million, some 18.0% more than the year before (EUR 157.0 million). This means that earnings grew in proportion to consolidated operating revenue, even though the consolidated financial statements showed significant extra expenses, including
- increased fleet costs and other operating expenses,
- extra costs incurred for the continuation of strategic growth measures (above all the expansion of the station network in Western Europe and the USA, marketing campaigns outside Germany, expansion of the carsharing joint venture DriveNow),
- non-recurring costs for the IPO of Sixt Leasing AG.
- The Group’s earnings after taxes climbed 16.5% to EUR 128.2 million (2014: EUR 110.0 million).
Dividend payout to increase by a quarter to EUR 72 million
Sixt also plans to continue its traditional shareholder-friendly dividend policy for 2015. At the Annual General Meeting on 2 June 2016, the Managing Board and Supervisory Board will propose to pay out a dividend of EUR 0.90 per ordinary share (previous year: EUR 0.80) and EUR 0.92 (previous year: EUR 0.82) per preference share as well as a special dividend of EUR 0.60 (previous year: EUR 0.40) for both share categories, subject to the approval of the Supervisory Board. This would result in a total payout of EUR 1.50 per ordinary share and EUR 1.52 per preference share. The proposed payout total would amount to EUR 72.4 million, some 25% higher than the previous year’s figure of EUR 58.0 million, which in itself was already some 20% up on the dividend total for 2013. Based on this dividend proposal, 63% of the Group’s profit after taxes and minority interests would be distributed to shareholders (previous year: 53%).
Share buy-back in a total amount of up to EUR 50 million resolved
Furthermore, the Managing Board of Sixt SE has – with consent of the Supervisory Board – resolved to buy back own ordinary and preference shares on the stock exchange for a total maximum purchase price of EUR 50 million (excluding incidental purchase expenses). The shares shall be bought back for the purpose of reducing the share capital by cancellation of acquired shares. The share buy-back program shall begin on 16 March 2016 and shall end, at the latest, on 31 December 2016.
Dr. Julian zu Putlitz, Chief Financial Officer of Sixt SE: “The planned share buy-back aims to further increase Sixt shares’ attractiveness for investors. Limiting the number of shares issued will enhance the associated financial KPIs, such as earnings per share.”
Investment in rental and leasing fleet for the first time above EUR 5 billion
The Group’s fleet policy in 2015 was very much characterised by the expansion in Europe, outside of Germany, and the USA. Over the year the Group added around 195,100 vehicles to the rental and leasing fleet (2014: 172,600 vehicles) with a total value of EUR 5.26 billion (2014: EUR 4.32 billion). Year-on-year, this is a 13.1% increase in the number of vehicles and an increase of 21.7% in the value of vehicles.
Group equity over EUR 1 billion
At EUR 1.06 billion as per 31 December 2015 the equity of the Sixt Group for the first time exceeded the EUR 1 billion mark. Compared to the figure of the previous year’s reporting date (EUR 741.6 million), this is a gain of EUR 317.2 million or 42.8%, which was essentially the result of the gross payments received as part of the IPO of Sixt Leasing AG in the amount of EUR 239.3 million as well as the high consolidated profit. The equity share Sixt SE holds in Sixt Leasing AG decreased after the IPO from 100.0% to 41.9%. Sixt Leasing AG will continue to be fully consolidated in Sixt SE’s consolidated financial statements, however. Despite the growth-driven expansion of the rental and leasing fleet the equity ratio increased to 28.9% (2014: 26.3%). This means that the Sixt Group continues to report an equity ratio significantly higher than the average in the German rental and leasing industry.
Outlook for the year 2016
The Managing Board’s outlook for fiscal year 2016 is generally optimistic. For the Vehicle Rental Business Unit it expects to see ongoing growth in demand in Germany as well as in the dynamically developing foreign markets. The Group’s strategic growth initiatives will continue during the current fiscal year and will once more result in significant extra expenditure. Sixt also expects to generate slightly higher revenue in its operating leasing business.
Maintaining its cautious and strictly demand-driven fleet policy, the Managing Board expects to see slight growth in consolidated operating revenue in fiscal year 2016. Given that extra costs will continue to be incurred for strategic expansion measures the Managing Board expects to generate a stable to slightly higher Group EBT in fiscal year 2016.
Developments in the operating business units
Sixt operates subsidiaries in nine western European countries outside Germany, as well as in the USA (Sixt corporate countries). This means that the Company covers by far the largest part of the European rental market and is one of the continent’s leading vehicle rental companies. In addition, Sixt is represented in numerous countries around the globe through efficient and strong franchise and cooperation partners (Sixt franchise countries). As at the end of the year under review, the number of Sixt rental stations came to 2,153 worldwide (end of 2014: 2,177). This slight drop is the result of a reorganisation of a number of franchise markets. In Germany, the number of rental offices rose to 508 (end of 2014: 483).
A positive development was registered in 2015 for the Group’s new mobility services: DriveNow, the premium carsharing joint venture operated together with BMW Group, strengthened its position as Germany’s carsharing company with the most customers and market leader among the free floating providers. At the end of the year, DriveNow had around 580,000 registered users in Germany and abroad, which was almost 50% more than at the end of 2014 (approx. 390,000). The expansion in Europe continued in 2015 with launches in Stockholm and Copenhagen, the latter becoming the first franchise location.
The chauffeur service myDriver registered around 50% more bookings in the year under review over the preceding year, whereby around half of all the trips were for business customers. Moreover, myDriver kicked off its internationalisation, so that the service can now be booked in numerous European metropolitan areas.
In 2015, the average number of vehicles in the Vehicle Rental Business Unit came to 98,200 in the Sixt corporate countries, which, thanks to the strong demand, is 16.2% higher than the year before, up from 84,600 vehicles.
Rental revenue increased 23.0% to EUR 1.38 billion (2014: EUR 1.12 billion). The gain generated abroad was 38.5% to EUR 677.5 million (2014: EUR 489.1 million). The biggest contribution towards this foreign growth came from the US subsidiary, which managed to more than double its revenues. This makes the USA the Company’s biggest foreign market a mere five years after the start of business operations there, ahead of France. In almost all European countries, including France, Spain and the UK, Sixt recorded dynamic double-digit growth rates.
In Germany, the Company managed to improve its already high level of rental revenue by another 10.9% to EUR 699.3 million (2014: EUR 630.5 million). All in all the Vehicle Rental Business Unit generated revenue increases of 23.7% to EUR 1.52 billion (2014: EUR 1.23 billion).
Taking due account of the extra expenses incurred by the expansion, the Business Unit’s EBT rose 17.2% to EUR 160.4 million (2014: EUR 136.8 million).
Sixt Leasing AG, which bundles together all of the Sixt Group’s activities in fleet leasing, online retail and fleet management, is one of Germany’s leading bank and vendor-neutral leasing companies. The focus of business activities is currently on fleet management and full service leasing for business and corporate clients. This covers a wealth of further services alongside the classic financing function. Other strongly growing segments are leasing and variable financing agreements as well as services to private and commercial customers that are offered via the online platform sixt-neuwagen.de.
As at 31 December 2015 the Business Unit’s contract portfolio in Germany and abroad climbed to around 103,200 contracts (without franchisees), some 6.0% up on the same reporting date the year before (97,400 contracts). An especially dynamic performance was recorded once again by the Online Retail business field (+33.7% to around 21,100 contracts).
Leasing revenue for 2015 climbed 0.6% to EUR 419.8 million (2014: EUR 417.3 million). This budgeted development matches the principle of giving higher margins and profitability preference over volume growth. Revenue from the sale of used leasing vehicles came to EUR 235.5 million, an increase of 61.4% (2014: EUR 145.9 million). This growth is due to the higher number of vehicles returned. Moreover, since 2013 the Fleet Management business field has also offered to dispose of its customers’ vehicles, so that the total revenue of the Leasing Business Unit climbed to EUR 655.4 million, an increase of 16.4% (2014: EUR 563.2 million).
Due to the strong growth in the Online Retail business field, improved margins in the contract portfolio and lower financing costs, EBT for the Leasing Business Unit climbed substantially from EUR 25.6 million to EUR 30.3 million (+18.2%).
Sixt Central Press Office
Tel.: +49 (0) 89 / 99 24 96 – 30
Fax: +49 (0) 89 / 99 24 96 – 32
E-mail: [email protected]
Sixt Group’s audited consolidated financial statements 2015 will be published on 19 April 2016.
The Sixt Group at a glance1
(Preliminary figures in accordance with IFRS)
Consolidated revenue development
|in EUR million||2015||2014||Change in %|
|Vehicle Rental Business Unit||1,519.3||1,228.0||+23.7|
|Thereof: rental revenue||1,376.9||1,119.6||+23.0|
|Thereof: other revenue from rental business||142.4||108.4||+31.4|
|Leasing Business Unit||655.4||563.2||+16.4|
|Thereof: leasing revenue||419.8||417.3||+0.6|
|Thereof: sales revenue||235.5||145.9||+61.4|
|Thereof: consolidated operating revenue||1,939.1||1,645.3||+17.9|
Consolidated earnings development
|in EUR million||2015||2014||Change in %|
|Fleet expenses and
cost of lease assets
|Depreciation and amortisation
|Net other operating
|Earnings before interest and taxes (EBIT)||221.8||199.2||+11.3|
|Net finance costs||-36.6||-42.2||-13.4|
|Earnings before taxes (EBT)||185.2||157.0||+18.0|
|Income tax expenses||57.0||47.0||+21.4|
|Earnings per share – basic
Other key figures for the Group
|31 Dec. 2015||31 Dec. 2014||Change in %|
|Total assets (in EUR million)||3,660||2,818||+29.9|
|Rental vehicles (in EUR million)||1,763||1,262||+39.7|
|Lease assets (in EUR million)||958||902||+6.1|
|Equity (in EUR million)||1,059||741||+42.8|
|Equity ratio (in %)||28.9||26.3||+2.6 points|
|2015||2014||Change in %|
|Investments (in EUR billion)3||5.26||4.32||+21.7|
1 Preliminary figures, due to rounding it is possible that individual figures presented in this news may not add up exactly to the totals shown and that the full-year figures listed may not follow from adding up the individual quarterly figures. For the same reason, the percentage figures presented may not exactly reflect the absolute figures they relate to.
2 Ratio of profit attributable to shareholders of Sixt SE and the pro rata temporis weighted average number of shares outstanding
3 Value of vehicles added to the rental and leasing fleet