News Detail

Sixt Leasing raises profitability still further during Q1 2016

• Consolidated revenue climbs 5.4% year-on-year to EUR 174.3 million
• Group EBT improves above average by 10.5% to EUR 8.1 million
• Return on operating revenue up by 13.3% to 7.8%
• Contract portfolio increases by 6.7% to 105,000 contracts
• Contract portfolio in the Online Retail business field grows almost one third to 23,000 contracts
• Acquisition of autohaus24 strengthens growth strategy of Online Retail
• Transfer of Group financing to external financing partners fully in line with plan
• Managing Board confirms business targets for full year 2016

Pullach, 12 May 2016 - In Q1 2016, Sixt Leasing AG, one of the largest non-bank, vendor-neutral full-service leasing companies in Germany, maintained the successful business performance of last year and managed to raise its profitability still further. Consolidated earnings before taxes (EBT), the key parameter for measuring business success, climbed 10.5% to EUR 8.1 million and thus above the average of consolidated revenue. Return on operating revenue consequently went up to 7.8%. At the end of March 2016 the contract portfolio held 105,000 contracts, some 6.7% more than at the same reporting date in 2015. This development was mainly due to the growth recorded in the Online Retail business field (private and commercial customer leasing) which expanded by almost one third. Against this background the Managing Board affirmed its business targets for the full year 2016.

Dott. Rudolf Rizzolli, CEO of Sixt Leasing AG: 'Sixt Leasing recorded a successful first quarter 2016 and is fully in line with plan. The success of the first TV ad campaign we launched for our sixt-neuwagen.de online platform is also very encouraging. It saw the brand awareness of Sixt Neuwagen shoot up. Given our ambitious growth plans we are examining if in future will we continue to count on such far-reaching marketing campaigns to secure and expand our position as first mover in online leasing for private and commercial customers.'

Key figures for the Group in Q1 2016

• Year-on-year consolidated revenue rose 5.4 % to EUR 174.3 million (Q1 2015: EUR 165.3 million), mainly through higher proceeds from the sale of used leasing vehicles.
• Operating revenue (without the proceeds from sales) dropped slightly by 2.5% to EUR 103.4 million (Q1 2015: EUR 106.0 million). This decrease is mainly attributable to lower income from fuel services due to price declines. Adjusted by fuel service income, the quarterly operating revenue increased from the previous year's first quarter by 1.1%.
• Sales proceeds climbed substantially, up by 19.6% to EUR 71.0 million after EUR 59.3 million for the same period the year before. This gain reflects the higher number of vehicles being returned after the strong expansion of the contract portfolio over the last few years as well as the increasing number of vehicles which are being marketed on customers' behalf in the Fleet Management segment.
• Sixt Leasing Group generated consolidated earnings before taxes (EBT) of EUR 8.1 million, an increase of 10.5% compared to the same figure the year before (EUR 7.3 million).
• The operating return on revenue (EBT/operating revenue) gained in line with strategy and climbed 13.3% to 7.8% (Q1 2015: 6.9%).

Private and commercial customers: contract portfolio increased by almost one third
As at reporting date, 31 March 2016, the Group's total number of contracts inside and outside Germany (excluding franchisees and cooperation partners) increased to 105,000 or 5.7% more than the 98,400 contracts recorded at the end of March 2015. The number of contracts managed by the Online Retail business field was up by 31.3% to 23,000 contracts.

Strong equity ratio, credit lines of over EUR 350 million negotiated
As at 31 March 2016 the Sixt Leasing Group recorded consolidated equity of EUR 184.1 million, some EUR 5.8 million more than at 31 December 2015. The equity ratio improved from 16.0% to 16.4% and remained above the targeted minimum level of 14%.

Transferring the Group financing to external partners as announced during the IPO in May 2015 remains fully on schedule. As at the end of April, credit lines of over EUR 350 million had been negotiated with bank partners. In addition, a borrower's note loan in the amount of EUR 30 million was successfully placed on the capital market in the beginning of May. It is also expected to conclude an ABS-financing structure ('Asset Backed Securities') with a volume of up to EUR 500 million by mid-2016. The new, external financing agreements are supposed to reduce interest costs substantially over the next few years.

Performance of the business units
The Sixt Leasing Group divides its operative business into the two business units (segments) Leasing (divided into the Fleet Leasing and Online Retail business fields) and Fleet Management.

Leasing business unit:
The Leasing business unit's total revenue (including sales proceeds) gained 4.5% during the first quarter of 2016 to EUR 153.3 million. The operating revenue from leasing transactions (finance leasing and services) decreased slightly by 2.2% to EUR 95.6 million, above all as a result of lower income from fuel services due to petrol price declines. Adjusted by fuel service income, the quarterly operating revenue climbed by 1.4%. EBT improved by 10.5% to EUR 7.5 million.

The Online Retail business field started the year with a TV ad campaign that triggered significantly more direct customer leads and helped the unsupported brand awareness of Sixt Neuwagen to rise.

At the end of April 2016 Sixt Leasing acquired 100% of the shares in autohaus24 GmbH to give it another access route to the strongly growing online vehicle market for private and commercial customers. autohaus24.de had previously been a joint venture held in equal shares by Sixt Ventures GmbH and Axel Springer Auto Verlag GmbH. The company ranks as one of the leading internet brokers for new vehicles in Germany. Through integrating leasing and financing offers on autohaus24.de, the high brand awareness and strong lead volume of autohaus24 can be utilised to conclude additional leasing and financing contracts.

As at 31 March 2016 the segment's number of contracts came to 71,600, an increase of 6.4% (31 March 2015: 67,300 contracts). The main driver of this increase was the dynamic development of the Online Retail business field (+31.3% to 23,000 contracts). The Fleet Leasing business field held 48,600 contracts, some 2.4% below the figure at the end of March 2015, but slightly up on the level recorded at the end of 2015.

Fleet Management business unit:
Total revenue of the Fleet Management business unit, which is operated by Sixt Mobility Consulting GmbH, grew in the reporting period by 13.0% to EUR 21.0 million. Receding revenue from fleet management was offset by substantially higher sales from marketing vehicles on behalf of customers. Earnings before taxes (EBT) improved 11.1% to EUR 0.6 million. The number of contracts held by the segment expanded 7.5% to 33,400 contracts (31 March 2015: 31,100 contracts).

Outlook for the year 2016
Looking ahead to the full 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 unchanged, with the number of contracts climbing above 32,000 by the end of 2017. In the Fleet Leasing business field the aim for 2016 is to achieve low single-digit growth in the contract portfolio. The Fleet Management business unit is expected to make a further step during the current year towards its medium-term target of around 50,000 contracts. In all this, Sixt Leasing intends to continue on its track of profitable growth.

Moreover, Sixt Leasing will continue to drive forward the reorganisation of the Group financing announced during the IPO in May 2015, which is set to bring interest costs down significantly.

For the full fiscal year 2016 the Managing Board expects operating revenue to expand by a lower to medium-range single-digit percentage figure compared to 2015, combined with a corresponding improvement of consolidated EBT, reflecting the growth in higher-margin businesses.

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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]

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The Sixt Leasing Group at a glance
(Figures in accordance with IFRS)¹
 

Revenue performance

Earnings performance

Balance sheet figures

1 Due to rounding it is possible that selected figures in this release 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
⁴ Liabilities to Sixt SE
⁵ Mainly liabilities to Sixt SE
⁶ Current and non-current financial liabilities, including finance leases
⁷ Value of vehicles added to the leasing fleet