News Detail

After a record year in 2016, Sixt Leasing is increasing dividend and expects further growth in revenue and earnings - Forecast for the online business is raised significantly

• Revenue and earnings increase to new peak values
• Strong growth in the online business and in Fleet Management continues unabated
• Contract volume climbed by 10 per cent to 113,600 contracts - in the online business field even by about 30 per cent
• Profitability and equity ratio improved despite high future investments
• Dividend increase by 20 per cent to EUR 0.48 per share
• Significant interest savings through optimisation of financial structure
• Growth outlook for 2017 in the online business field nearly doubled through increase of 8,600 to a total of 36,000 contracts
• Increase of consolidated EBT 2017 in the high single-digit per centage range

Pullach, March 14, 2017 - Sixt Leasing SE, one of the largest bank- and manufacturer-independent full-service leasing companies in Germany, reported 2016 the most successful business year in its company history. According to preliminary figures (IFRS), the consolidated revenue increased in comparison to the prior year by 7.3 per cent to an all-time high of EUR 713.9 million. The Group's operating revenue (not including vehicle sales proceeds) remained stable as expected at EUR 430.0 million, but would have increased by 2.9 per cent without taking the lower fuel revenue into consideration. The sales revenue from returned leasing and marketed customer vehicles climbed by 20.5 per cent to EUR 283.9 million. The Fleet Management and Online Retail business fields made a considerable contribution to the growth. In Fleet Management, the contract volume increased by 14.3 per cent and in the Online Retail even by 29.9 per cent. Altogether, at home and abroad, the Group's contract portfolio (not including franchise and cooperation partners) posted an increase of 10.1 per cent to 113,600 contracts.

Group earnings before taxes (EBT) increased by 4.3 per cent to EUR 31.6 million despite significantly higher growth investments. The operating return on revenue improved by 0.3 percentage points to 7.3 per cent and thus continued to be noticeably above the minimum target of 6.0 per cent. Likewise, the equity ratio with an increase of 0.6 percentage points to 16.6 per cent significantly exceeded the targeted 14.0 per cent. At the same time, the financial result was improved: The previous year's deficit of EUR 21.3 million shrunk by 8.4 per cent to EUR 19.5 million. This resulted from lower interest expenses after the repayment of EUR 209 million from the Core Loan provided by Sixt SE at midyear.

All in all, Sixt Leasing SE was able to improve its profits to a considerable extent: The consolidated net profit rose by 9.3 per cent to EUR 24.6 million. Subject to the approval by the Supervisory Board, the Managing Board plans, despite high growth investments, to propose a dividend increase to EUR 0.48 per share for the fiscal year 2016 (2015: EUR 0.40 per share) at the Annual General Meeting on 29 June 2017. This dividend proposal would lead to a total distribution of EUR 9.9 million (2015: EUR 8.2 million) and a distribution ratio of about 40 per cent (2015: 37 per cent) of the consolidated net profit. Thus, the ratio would be at the upper end of the communicated target range of 30 to 40 per cent of the consolidated net profit.

Rudolf Rizzolli, CEO of Sixt Leasing SE: "2016 constituted another record year in that we laid the foundation for continued dynamic growth. The results fall fully within the scope of our expectations. For 2017 we expect further growth in revenue and earnings. For that purpose, we will concentrate even more on the online sale of new vehicles, the last large market in Germany that is not yet digitalised. Thanks to our innovative and high-margin online platform sixt-neuwagen.de, we plan to further develop our position as online market leader and to gain additional market shares. Our just recently introduced 'flat rate for the road' in cooperation with 1&1 is already being well received. Therefore, we are confident that we will reach our annual target to date for the contract volume in the Online Retail business field much earlier than expected."

Leasing business unit (Fleet Leasing and Online Retail)
The Leasing business unit, which consists of the Fleet Leasing and Online Retail business fields underwent a positive development in fiscal year 2016. Compared to 2015, the contract portfolio rose by 8.0 per cent to 74,900 contracts (31 December 2016). Thus, the dynamic growth in Online Retail of 29.9 per cent to 27,400 contracts was more than able to make up for the slight decline in Fleet Leasing of 1.6 per cent to 47,500 contracts. Total revenue of the Leasing business unit increased by 5.6 per cent to EUR 626.8 million. Earnings before taxes (EBT) of the Leasing business unit increased as a result of the operating growth, the improved earnings quality in the contract portfolio and a drop in the average interest expenses due to the reorganisation of Group financing by 2.1 per cent to EUR 28.0 million. Investments in the long-term growth of the Online Retail business field had an inverse effect.

Fleet Management business unit
The Fleet Management business unit underwent a very positive development during fiscal 2016. Compared to the previous year, the contract portfolio increased by 14.3 per cent to 38,700 contracts (31 December 2016), in particular due to the complete takeover of the present Sixt Mobility Consulting AG in Switzerland. Total revenue of the Fleet Management business unit increased by 21.1 per cent to EUR 87.1 million. Earnings before taxes (EBT) of the Fleet Management business unit also saw very positive growth and rose by 25.1 per cent to EUR 3.5 million.

Financing
Sixt Leasing SE was able to reach several milestones in fiscal year 2016 concerning the set-up of a Group financing that is diversified and independent from Sixt SE. In May, Sixt Leasing SE successfully placed its first borrower's note loan for EUR 30 million with institutional investors. In July, the company reached its target volume of EUR 500 million just one month after starting the asset-backed securities (ABS) programme to refinance leasing contracts. In January 2017, the company placed its first bond with a volume of EUR 250 million. Last year, Sixt Leasing SE also repaid EUR 209 million of the Core Loan provided by Sixt SE. Thus, the amount outstanding under this loan amounts to EUR 490 million as of 31 December 2016.

Björn Waldow, CFO of Sixt Leasing SE: "2016 was successful for Sixt Leasing also with respect to Group financing. Within a short time period, we were able to build up a very good reputation in the capital market and reached important milestones to set up new refinancing independent from our shareholder Sixt SE. Reduction of interest expenses associated with that already had an impact last year and is to further strengthen in 2017."

Innovation in 2017
In March 2017, Sixt Leasing was the first provider to introduce a "flat rate for the road" along with a fully digital online ordering process, and thus reached the next milestone in the online strategy. The new vehicle flat rate initially offered within the scope of a collaboration with the mobile telephony and internet provider 1&1 includes, in addition to the vehicle, an all-in carefree package covering all costs for transfer, registration, taxes and insurance. With the additionally bookable Flexi-Lease option, the 12-month basic term can be extended flexibly at a later point in time by up to 30 months.

"Our customers do not want to buy cars, instead they want mobility - preferably online, flexible and at a predictable, favourable all-inclusive flat rate. Even printing, filling out and signing documents as well as going to the post office are now a thing of the past. With eSign, video-identification procedures, and online credit checks, the entire process for ordering a new vehicle is done in a completely digital manner," emphasizes Rudolf Rizzolli.

The market for new vehicles is one of the last large markets in Germany that is not yet digitalised. Sales are still processed almost exclusively through traditional local car dealers. A growing number of customers, however, want to not only compare their vehicle online just like any other consumer goods, but they also want to order it online and ideally pay for its use a monthly flat rate that includes all vehicle-related services and costs. With the "flat rate for the road" Sixt Leasing is building up its leading position on the online new vehicle market to advance the digitalisation of this market valued at almost EUR 100 billion in Germany alone.

Outlook for 2017
For fiscal 2017 and the following years, Sixt Leasing wants to continue the path of profitable growth taken to date and further expand its position as an innovative and high-margin mobility provider on the German market.

The Online Retail business field is set to become much more significant in 2017 based on its outstanding growth prospects and continuing digitalisation and develop perspectively to become the largest business field within the Group. Therefore, the Managing Board has significantly raised its forecast for 2017 and anticipates a contract volume of 36,000 contracts by the end of the year, which represents additional growth of 4,000 contracts compared to original guidance.

The focus in the Fleet Leasing business field is to remain on profitability with a slight increase in the contract volume.

Accelerating expansion into key European foreign markets is planned for the Fleet Management business unit. In this regard, Sixt Leasing especially wants to build on existing customer relations. This is intended to accomplish another step towards a medium-term objective of 50,000 contracts in 2017.

For fiscal year 2017, the Managing Board expects to see an increase in earnings before taxes (EBT) in the high single-digit percentage range as well as slight growth in operating revenue, which is expected to further improve profitability. Moreover, the Managing Board anticipates that the equity ratio will again reach a value above the minimum target figure of 14 per cent.

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About Sixt Leasing:

Sixt Leasing SE (WKN: A0DPRE / ISIN: DE000A0DPRE6) based in Pullach near Munich is one of Germany's leading independent vehicle leasing service providers and is also involved in fleet leasing and fleet management, both in Germany and elsewhere in Europe. With its full-service portfolio, the company enables the mobility of its private and corporate customers.

Private and commercial customers use the online platform sixt-neuwagen.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 2015 the Group generated consolidated revenues of EUR 665 million.

www.sixt-leasing.com

Contact:
Sixt Leasing SE
Corporate Communications
Frank Elsner / Frank Paschen
Tel.: +49 (0) 89 / 99 24 96 - 30
Fax: +49 (0) 89 / 99 24 96 - 32
E-Mail: [email protected]
 

Note:
All fiscal year 2016 figures in this press release are preliminary and subject to possible change. The final and audited 2016 consolidated annual financial statements for Sixt Leasing SE will be published on 24 April 2017.

The Sixt Leasing Group in 2016
(Preliminary figures in accordance with IFRS)¹

Revenue performance

Earnings performance

Balance sheet figures

¹ Due to roundings it is possible that selected figures in this release cannot be added up to the amount recorded and that the year 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 The write-downs on lease assets intended for sale are accounted as fleet expenses and cost of lease assets since the financial year 2016. The figures of the previous year are adjusted accordingly.
³ Ratio of EBT to operating revenue
⁴ Ratio of Group surplus attributable to the Group shareholders to weighted number of shares for the period
⁵ Liabilities to Sixt SE (Core Loan)
⁶ Mainly liabilities to Sixt SE
⁷ Current and non-current financial liabilities, including finance leases
⁸ Value of vehicles added to the leasing fleet