DGAP-News: Sixt Leasing AG / Key word(s): Preliminary Results/Final Results Sixt Leasing AG: contract portfolio exceeds 100,000 threshold for the first time in 2015 - Pre-tax earnings (EBT) up 18.2% to EUR 30.3 million 14.03.2016 / 10:00 The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Sixt Leasing AG: contract portfolio exceeds 100,000 threshold for the first time in 2015 - Pre-tax earnings (EBT) up 18.2% to EUR 30.3 million - Consolidated revenue up by 15.7% to EUR 665.4 million - Return on operating revenue climbs 17.7% to 7.0% - Successful focus on qualitative growth and margin optimisation in the fleet business - Above-average growth in high-yield business with private and commercial customers (Online Retail) to 21,100 contracts (+33.7%) - Proceeds from marketing of vehicle returns in the Online Retail business field higher than expected - Restructuring of Group financing fully on target - Dividend of EUR 0.40 per share planned for 2015 - Dr. Rudolf Rizzolli, CEO: "In 2015 Sixt Leasing achieved all its targets and recorded the most successful year in the company's history. For 2016 we expect further growth in revenue and earnings." Pullach, 14 March 2016 - Sixt Leasing AG, one of the largest non-bank, vendor-neutral full service leasing companies in Germany, recorded a business development in 2015 that was fully in line with its own expectations. The Group's three business fields performed successfully. The Fleet Leasing business field consistently implemented the strategy of profitable growth with high and reliable income. The high-margin business field Online Retail with its platform sixt-neuwagen.de, which targets private and commercial customers, grew exponentially and improved its market position. It succeeded above all in significantly improving the number of contracts offering additional service packages, and substantially increased customer retention. The Fleet Management business field expanded its contract portfolio through successful key account acquisition and kicked off the internationalisation of its operations. According to provisional calculations, the Sixt Leasing Group's earnings before taxes (EBT) climbed 2015 by 18.2% to EUR 30.3 million. Total Group revenue climbed 15.7% to EUR 665.4 million. The EBT margin (in relation to operating revenue) improved further, by 17.7% to 7.0%. At the end of 2015, the Group's contract portfolio totalled 103,200 contracts, some 6.0% more than the figure recorded for the previous year, and thus for the first time above 100,000. Shareholders are set to benefit from the good business development in 2015 through payment of a dividend of EUR 0.40 per share. Today Sixt Leasing announces the key performance indicators of the preliminary consolidated statements at its annual press conference in Munich. Dr. Rudolf Rizzolli, CEO of Sixt Leasing AG: "2015 was the most successful year for Sixt Leasing in its corporate history. For one thing, the IPO in May 2015 created the preconditions for us to pursue our strategic objectives independently and to build up our own financing structure. For another thing, in the preceding fiscal year we were spot on in reaching our growth and earnings expectations. Fleet Leasing continued its path of profitable growth and managed to increase the rate of return in its contract portfolio. The Online Retail business field is growing above average and is continually gaining market shares. Besides, we have registered a gratifying trend over the last few months of generating good remarketing results with the vehicles returned from the private and commercial customer business. The Fleet Management business field, where we offer our expertise built up over years of managing large fleets also without lease financing, managed to expand total revenue and profitability as well as its presence in Europe. We will continue this sustainable Group strategy over the coming years." Key figures for the Group in 2015 - Year-on-year consolidated revenue rose 15.7% to EUR 665.4 million (2014: EUR 575.0 million). The strong growth is mainly the result of higher proceeds from the sale of returned vehicles. - Operating revenue (without sales revenue) increased 0.4% to EUR 429.8 million (2014: EUR 427.9 million) and thus performed in line with strategy. In 2015 Sixt Leasing especially focused on increasing profitability in its Fleet Leasing business field, while above all the Online Retail business field registered significant growth impetus. - Sales revenue jumped by 60.1% to EUR 235.6 million, compared to EUR 147.1 million the year before. This development reflects the strong growth of the preceding years, which has triggered a large number of vehicle returns with a certain time lag. Another effect is that since 2013 the Fleet Management segment has offered the additional service of marketing customer vehicles. The marketing of vehicles returned from the private and commercial customer business led to higher earnings contributions than expected. This development was also supported by the expansion of marketing efforts via stationary channels. - Sixt Leasing Group's net finance costs improved by 7.9% to EUR -21,3 million (2014: EUR -23,1 million). This development was facilitated by an improved interest rate environment and the redemption of financial liabilities following the inflow of proceeds from the IPO. - The Sixt Leasing Group generated earnings before taxes (EBT) of EUR 30.3 million, an increase of 18.2% (2014: EUR 25.6 million). This gain was attributable above all to growth, the measures taken to increase the contract portfolio's profitability as well as lower spending on interest payments. - The operating return on revenue (EBT to operating revenue) improved by 17.7% to 7.0% and thus was higher than the sustainably targeted rate of 6%. - Consolidated profit climbed from EUR 19.0 million to EUR 22.5 million, a gain of 18.4%. Dividend ratio at the upper end of the targeted corridor At the Annual General Meeting on 1 June 2016, the Managing Board proposes to pay out a dividend for fiscal year 2015 of EUR 0.40 per share, subject to the approval of the Supervisory Board. This dividend proposal would result in a total distribution of EUR 8.2 million and a distribution ratio of around 37% (referenced to the consolidated profit). The ratio would therefore be at the upper end of the targeted corridor of 30% to 40% that was communicated at the IPO. Group's contract portfolio climbs 6.0% As at reporting date, 31 December 2015, the Group's total number of contracts inside and outside Germany (excluding franchisees) increased to 103,200 and therefore exceeded the figure of 100,0000 contracts for the first time. Compared with the figure recorded at the previous year's reporting date (97,400 contracts) the increase amounts to 6.0%. This improvement is essentially due to the strong demand registered in the Online Retail business field and the successful key account acquisition in the Fleet Management segment. Group equity ratio of 16% At the end of the year under review Sixt Leasing reported Group equity of EUR 178.3 million. The increase of EUR 166.1 million from the figure at the end of 2014 (EUR 12.3 million) is essentially the result of the capital increase during the IPO and the capital injection of EUR 30 million made by Sixt SE before the stock listing. At 16.0% the equity ratio at the end of 2015 was therefore above the targeted figure of at least 14%. To date Sixt Leasing AG has negotiated financing agreements with bank partners amounting to more than EUR 350 million and therefore reached the next milestone in setting up a financing structure independent from Sixt SE. The conclusion of an ABS financing agreement with a volume of up to EUR 500 million is strived for mid-2016. All in all, the roadmap for restructuring the Group's financing and thereby lowering the financing costs is fully on target. Performance of operative business segments The Sixt Leasing Group divides its operative business into the two segments (business units), Leasing (with the business fields Fleet Leasing and Online Retail) and Fleet Management. Leasing segment: Operating revenue from leasing business (finance leasing and services) in 2015 came to EUR 397.1 million, some 2.5% over the figure of the previous year (EUR 387.5 million). The business unit's total revenue (including the strong uptake in sales revenue) amounted to EUR 543.7 million, an increase of 14.5% on the figure of 2014 at EUR 518.4 million. The segment's earnings before taxes (EBT) increased 17.0% to EUR 27.4 million as a result of operating growth, improved quality of earnings in the contract portfolio and lower spending on interest payments, compared to EUR 23.5 million recorded for 2014. In addition, the growing number of Online Retail customers who are using services is having a positive effect on margins. Approximately every third Online Retail contract concluded in 2015 includes at least one service component, such as accident and damage management, a car insurance or an inspection package. Moreover, customer loyalty was strengthened by the introduction of a bonus for existing customers, with the result that about every second private or commercial customers has decided to conclude a follow-up contract over the last months. The positive trend from remarketing the vehicles returned in the private and commercial customer business also improved the contribution to earnings coming from the Online Retail business field. As at 31 December 2015, the segment's registered number of contracts amounted around 69,400, a rise of 5.3% (31 December 2014: approx. 66,000). Online Retail improved its contract portfolio by 33.7 % to around 21,100 (31 December 2014: approx. 15,800 contracts) and continued the dynamic development of the preceding years. In the Fleet Leasing business field the number of contracts stayed with at around 48,300, 3.7% below the level of 2014 (31 December 2014: approx. 50,200), also because of the deliberate concentration on contracts that generate strong margins. Fleet Management segment: Total revenue for the Fleet Management segment, which is operated via the subsidiary Sixt Mobility Consulting GmbH, reached EUR 71.9 million in 2015, a gain of 26.9% (2014: EUR 56.6 million). The segment's operating revenue made with services (excluding sales revenue) came to EUR 32.7 million, compared to EUR 40.4 million the year before. The 19.1% drop is essentially the result of the strategically intended termination of the contract with a key account that did not meet profitability expectations. The business unit's earnings before taxes (EBT) improved to EUR 2.8 million compared with EUR 2.2 million the year before. The operating return on revenue (EBT to Fleet Management revenue without sales revenue) increased strongly from 5.3% in 2014 to 8.7% in 2015. The number of contracts in the segment expanded by 7.6% to around 33,800 contracts (31 December 2014: approx. 31,400 contracts), which was above all due to the acquisition of a key customer in the third quarter, adding approximately 10,000 vehicles. The implementation of this contract kicked off in 2015 and shall be finalised by the end of the first quarter of 2016. Outlook for the year 2016 Sixt Leasing has set itself the following targets for the current fiscal year 2016: - Continued intensified growth in the Online Retail business field with the objective of achieving a substantial competitive position in the German market for new cars for private and commercial customers. To this end, Sixt Leasing will expand its online marketing channels and invest significantly in marketing campaigns with a wide reach in order to increase brand recognition. Given the ample market potential, these investments are expected to pay off in the short term. A first TV campaign kicked off early 2016 and led already to a substantial uptake in hits registered on the online platform. - Further profitability improvements in the contract portfolio by increasing the ratio of services sold in the leasing contracts as well as through increased measures towards customer retention. Innovative products and services aim to raise customer benefits and lead to further simplifications in car selection, ordering and delivery processes. - Continuing the internationalisation of the Fleet Management segment in Western Europe that started in 2015. The objective is to manage international fleets and thereby expand the contract portfolio. A key role will be assumed by the "Global Reporting Tool", which was introduced in the fourth quarter of 2015 and allows the efficient and transparent management of worldwide fleets. For the current fiscal year 2016 the Managing Board projects further growth in the contract portfolio. The Online Retail business field is expected to keep up its dynamic development, with the number of contracts expected to climb to more than 32,000 by the end of 2017. Fleet Leasing in 2016 is expected to grow its contract portfolio somewhere in the lower single-digit percentage range. In the Fleet Management segment, shall be made another step towards the mid-term target of around 50,000 contracts. For the full fiscal year 2016 the Managing Board expects to expand operating revenue by a lower to mid-range single-digit percentage figure, combined with a corresponding improvement of consolidated EBT. --- Contact: Sixt Leasing AG Corporate Communications Frank Elsner Tel.: +49 (0) 89 / 99 24 96 - 30 Fax: +49 (0) 89 / 99 24 96 - 32 E-Mail: [email protected] Note: All fiscal year 2015 figures in this news are preliminary and subject to possible changes. The audited consolidated financial statements 2015 for Sixt Leasing AG will be published on 18 April 2016. The Sixt Leasing Group in 2015 (Preliminary figures in accordance with IFRS)(1) Revenue performance in EUR million 2015 2014 Change in % Leasing segment 593.5 518.4 +14.5 Fleet Management segment 71.9 56.6 +26.9 Consolidated revenue 665.4 575.0 +15.7 thereof consolidated operating revenue 429.8 427.9 +0.4 (finance leasing & services) thereof sales revenue 235.6 147.1 +60.1 Earnings performance in EUR million 2015 2014 Change in % Fleet expenses and cost of lease assets 401.4 337.7 +18.9 Personnel expenses 20.2 17.6 +14.6 Depreciation and amortisation 178.6 158.3 +12.8 Net other operating income/expense -13,6 -12.6 +7.7 Net finance costs -21.3 -23.1 -7.9 Earnings before taxes (EBT) 30.3 25.6 +18.2 Operating return on revenue (%)(2) 7.0 6.0 +17.7 Income tax 7.7 6.6 +17.5 Consolidated profit 22.5 19.0 +18.4 Earnings per share - basic 1.20 1.27 -5.5 (in EUR)(3) Balance sheet figures for the Group in EUR million 31 Dec 2015 31 Dec 2014 Change in % Total equity and liabilities 1,112.9 1,080.9 +3.0 Lease assets 957.8 902.4 +6.1 Non-current liabilities to related parties 699.0(4) 20.0 +>100 Current liabilities to related parties 4.0 659.8(5) -99.4 Other financial liabilities(6) 97.3 259.1 -62.5 Equity(7) 178.3 12.3 >+100 Equity ratio (%) 16.0 1.1 +14.9 points 2015 2014 Change in % Investments in lease assets(8) 424.1 420.2 +0.1 --- (1) Due to rounding it is possible that selected figures in this news cannot be added up to the amount recorded and that the annual figures listed do not follow from adding up the individual quarterly figures. For the same reason, the percentage figures listed may not always exactly reflect the absolute numbers to which they refer. (2) Ratio of EBT to operating revenue (3) Ratio of consolidated profit attributable to the Group's shareholders to weighted number of shares for the period (undiluted), 2015 based on 18.7 million shares (weighted), 2014 based on 15.0 million shares (weighted) (4) Liabilities to Sixt SE (Core Loan) (5) Mainly liabilities to Sixt SE (6) Current and non-current financial liabilities, including finance leases (7) Following the equity inflow from the IPO and the capital injection of EUR 30 million into the capital reserves made by Sixt SE (8) Value of vehicles added to the leasing fleet --------------------------------------------------------------------------- 14.03.2016 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: Sixt Leasing AG Zugspitzstraße 1 82049 Pullach Germany Phone: +49 (0)89 744 44 - 4518 Fax: +49 (0)89 744 44 - 8 4518 E-mail: [email protected] Internet: http://www.sixt-leasing.de ISIN: DE000A0DPRE6 WKN: A0DPRE Indices: SDAX Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart, Tradegate Exchange End of News DGAP News Service --------------------------------------------------------------------------- 444643 14.03.2016