News Detail

Sixt Leasing SE increases revenue and earnings in the first nine months of 2018

• Revenue increases by more than eight per cent to over EUR 600 million
• EBT increases by 12.3 per cent to EUR 23.4 million compared to the same period last year that was burdened by special effects
• Potential residual value risk from diesel vehicles significantly reduced
• Managing Board confirms targets for 2018 that were adjusted in September

Pullach, 14 November 2018 - Sixt Leasing SE, market leader in the online sales of new vehicles and specialist in the management and full-service leasing of large fleets, has increased its revenue and earnings before taxes (EBT) in the first nine months of the 2018 financial year. The contract portfolio was approximately at the previous year's level, while the potential residual value risk from diesel vehicles without buyback agreement were reduced significantly. The Managing Board confirms the forecast for the full-year 2018 that was adjusted in September.

The contract portfolio in the Online Retail business field increased by 2.3 per cent to 46,500 contracts in the period from the end of December to the end of September. In the Fleet Management business unit, the contract portfolio increased as well by 3.3 per cent to 40,700 contracts. The contract portfolio in the Fleet Leasing business field saw a reduction of 8.2 per cent to 44,100 contracts. This was in particular due to the active risk management as part of the strategy programme DRIVE>2021 to reduce the potential residual value risk from diesel vehicles without buyback agreement and the drop-out of a volume customer. Overall, the Group's contract portfolio in Germany and abroad (excluding franchise and cooperation partners) was approximately at the previous year's level, decreasing by 1.2 per cent to 131,300 contracts.

Björn Waldow, CFO of Sixt Leasing SE: "In the first nine months of the 2018 financial year, we successfully pushed ahead with the implementation of our strategy programme DRIVE>2021, particularly with regard to the active risk management for older diesel vehicles, and held our ground well despite the ongoing diesel debate. We are also making good progress in digitalisation and preparing for internationalisation."

Consolidated revenue climbed year-on-year by 8.5 per cent to EUR 600.1 million, in particular due to the expansion of the contract portfolio in the Online Retail business field in the 2017 financial year. The Group's operating revenue (excluding sales revenues) increased by 6.8 per cent to EUR 358.0 million. Sales revenues from leasing returns and marketed customer vehicles rose disproportionately by 11.2 per cent to EUR 242.1 million. This was mainly due to a higher number of vehicle returns in the Online Retail business field.

Consolidated earnings before interest, taxes, depreciation and amortisation (EBITDA) increased in the first nine months by 4.0 per cent to EUR 181.3 million. The financial result improved substantially by EUR 2.8 million to EUR -10.3 million. Interest expenses were reduced significantly especially as a result of the repayment of the last two instalments of the Core Loan to Sixt SE in the amount of EUR 300 million in June 2017 and EUR 190 million in June 2018.

Consolidated earnings before taxes (EBT) increased by 12.3 per cent to EUR 23.4 million in the first nine months of 2018 compared to the same period of the previous year that was burdened by special effects. Especially additional risk provisions for leasing vehicles have been recorded in the third quarter of 2017. The operating return on revenue improved by 0.3 percentage points to 6.5 per cent, remaining clearly above the target figure of 6.0 per cent. Consolidated net profit rose by 16.0 per cent to EUR 17.8 million.

The equity ratio amounted to 14.9 percent at the end of September 2018 and was thus 0.7 percentage points above the ratio at the end of 2017 despite the dividend payment of EUR 9.9 million in June. Gross cash flow rose by 10.5 per cent to EUR 174.5 million compared with the first nine months of 2017. At EUR 386.9 million, investments in lease assets were 10.9 per cent below the level of the same period of the previous year.

Active risk management
The potential residual value risk from diesel vehicles was reduced significantly in the first three quarters of 2018 as part of the strategy programme DRIVE>2021. In the period from January to September 2018, the share of new contracts for diesel vehicles without buyback agreement in Germany was just 15 per cent. In the fourth quarter of 2017, this figure was still at 28 per cent. Hence, Sixt Leasing SE has reached its self-defined target of around 15 per cent for the full-year 2018 already after nine months.

With the new WLTP test procedure, on 1 September 2018 stricter emission guidelines for light vehicles have entered into force. As a result, new passenger car registrations are now only permitted for the latest generations of Euro 6 diesel vehicles with significantly lower emission levels. The consequent introduction of stricter regulations and the changed framework conditions in this respect enable Sixt Leasing now to make risk management for diesel vehicles more flexible again.

Furthermore, since the start of the year, the portfolio of diesel vehicles with the Euro 5 standard and lower in Germany without buyback agreement has continued to decline strongly. Thus, the number of these vehicles on the balance sheet decreased by a good 40 per cent to only around 3,400 vehicles as of 30 September 2018 compared to the end of 2017. Since the start of 2016, in total nearly 10,000 diesel vehicles without buyback agreement with the Euro 4 and 5 standard have been sold successfully.

Outlook
For the 2018 financial year, the Managing Board expects, in line with the forecast adjusted in September, a slight increase in consolidated operating revenue and EBITDA as well as an EBT and a Group's contract portfolio approximately at the previous year's level. The target for the operating return on revenue remains unchanged at 6.0 per cent.

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The quarterly report of the Sixt Leasing Group as of 30 September 2018 can be downloaded from http://ir.sixt-leasing.com/interim-reports.

About Sixt Leasing:
Sixt Leasing SE (WKN: A0DPRE / ISIN: DE000A0DPRE6) based in Pullach near Munich is market leader in online sales of new vehicles as well as specialist in management and full-service leasing of large fleets. With tailor-made solutions, the company enables the longer-term mobility of its private and corporate customers.

Private and commercial customers use the online platforms sixt-neuwagen.de and autohaus24.de to lease new vehicles affordably. Corporate customers benefit from the cost-saving leasing of their vehicle fleet and from efficient fleet management.

Sixt Leasing SE has been listed in the Regulated Market of the Frankfurt Stock Exchange (Prime Standard) since 7 May 2015. In fiscal year 2017, the Group generated consolidated revenue of EUR 744 million.
www.sixt-leasing.com

Contact:
Sixt Leasing SE
Investor Relations
Stefan Kraus
+49 89 74444 4518
[email protected]

The Sixt Leasing Group in 9M 2018 at a glance¹
 

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¹ Figures according to IFRS; rounding differences possible
² Ratio EBT to operating revenue (=consolidated revenue without sales revenue)