Interim / Quarterly Report • Aug 16, 2018
Interim / Quarterly Report
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| 1.1 Business model of the Group 1.1.1 General disclosures 1.1.2 Vehicle Rental Business Unit 1.1.3 Leasing Business Unit 1.2 Business report 1.2.1 General development in the Group 1.2.2 Vehicle Rental Business Unit 1.2.3 Leasing Business Unit 1.2.4 Earnings development 1.2.5 Net assets 1.2.6 Financial position 1.2.7 Liquidity position 1.2.8 Investments 1.3 Events subsequent to reporting date 1.4 Report on outlook 1.5 Report on risks and opportunities 1.6 Significant business transactions with related parties 2. INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS AT 30 JUNE 2018 2.1 Consolidated income statement and statement of comprehensive income 2.2 Consolidated balance sheet 2.3 Consolidated cash flow statement 2.4 Consolidated statement of changes in equity 3. CONDENSED NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2018 3.1 General disclosures 3.2 Scope of consolidated entities 3.3 Explanations of selected items of the consolidated financial statements 3.4 Explanations of selected items of the consolidated financial statements 3.5 Group segment reporting 3.6 Contingent liabilites 3.7 Related party disclosures 3.8 Events subsequent to reporting date |
1. INTERIM REPORT OF THE GROUP | 3 |
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| 4. RESPONSIBILITY STATEMENT | 27 |
Due to rounding it is possible that individual figures presented in this Interim Report may not add up exactly to the totals shown and that the half-year figures listed may not follow from adding up the individual quarterly figures. Furthermore, the percentage figures presented may not exactly reflect the absolute figures they relate to.
Sixt SE domiciled in Zugspitzstrasse 1, 82049 Pullach, Germany, is registered in section B of the commercial register at the Munich Local Court, under the docket number 206738. The Company was formed in 1986 as a result of a reorganisation of "Sixt Autovermietung GmbH", established in 1979, and has traded since then as "Sixt Aktiengesellschaft", which in 2013 was transferred into "Sixt SE". The Company floated on the stock market in 1986. It has registered branches in Leipzig and at Munich airport. The Company has been established for an indefinite period.
At the reporting date 30 June 2018, the Company's subscribed capital amounted to EUR 120,174,996.48. Both ordinary shares and non-voting preference shares have been issued, both categories as no-par value shares with a notional amount of EUR 2.56 per share. All shares have been fully paid up. The largest shareholder is Erich Sixt Vermögensverwaltung GmbH, Pullach, which holds 58.3% of the ordinary shares and voting rights of the subscribed capital as at reporting date. Erich Sixt Vermögensverwaltung GmbH, Pullach, is the parent of Sixt SE, Pullach.
Sixt is represented through its subsidiaries in the core European countries of Germany, France, Spain, the UK, the Netherlands, Austria, Switzerland, Italy, Belgium, Luxembourg and Monaco (Sixt corporate countries) and thus covers the largest part of the European rental market, making it one of the continent's leading vehicle rental companies. Sixt also operates a subsidiary on the US-American rental market. In many other European and non-European countries, the Company is additionally represented by franchise and cooperation partners (Sixt franchise countries).
Sixt Leasing SE, which bundles together all of the Sixt Group's activities in fleet leasing (full-service leasing), online retail leasing (private and commercial customer leasing) and fleet management, is one of Germany's leading bank and vendor-neutral leasing companies. The Fleet Management business field is handled by the subsidiary Sixt Mobility Consulting GmbH. Outside Germany, Sixt Leasing is represented by subsidiaries in Switzerland, France, Austria and the Netherlands. Alongside the classic finance leasing, the full-service leasing for corporate and business customers comprises a wide range of other services. Fleet Management offers these services also to customers that have financed their vehicles themselves or through third parties. Sixt develops and implements tailor-made mobility concepts that allow customers to bring their fleet costs down over the long term. One important growth field are leasing and service offers for private and commercial clients, as these target groups are increasingly looking for alternatives to vehicle ownership. Sixt Leasing addresses these target groups with the online platforms sixt-neuwagen.de and autohaus24.de.
The Sixt Group recorded a very successful first half-year 2018, which significantly outperformed the previous year's revenue and earnings. This is due to the ongoing dynamic development in the Vehicle Rental Business Unit, which saw double-digit percentage revenue growth, above all driven by the continued expansion abroad. Consolidated operating revenue from rental and leasing activities (excluding revenue from the sale of used leasing vehicles) climbed 11.1% in the first six months of 2018 to EUR 1.18 billion (H1 2017: EUR 1.07 billion). The share generated abroad continued to increase to 47.5% (H1 2017: 45.5%).
The Sixt Group's total revenue (including revenue from vehicle sales in the Leasing Business Unit) for the period January to June 2018 came the EUR 1.35 billion, a plus of 10.8% over the same period the year before (H1 2017: EUR 1.21 billion).
Earnings before taxes (EBT), the Sixt Group's key indicator for measuring business success, came to EUR 326.9 million for the first six months of the year. This figure includes a pre-tax profit from the sale of the 50% stake in the carsharing joint venture DriveNow in the amount of EUR 196.1 million in the first quarter 2018. Without this non-recurring effect the EBT recognised for the first six months amounted to EUR 130.8 million, a plus of 27.5% after the EUR 102.6 million recorded for the same period of 2017. This means that Group earnings clearly outperformed revenue growth. While the improvement in earnings is due to the Vehicle Rental Business Unit, the Leasing Business Unit's EBT remained slightly below the corresponding figure of the year before.
For the second quarter of 2018 the Group recorded an 11.9% increase in consolidated operating revenue to EUR 641.8 million (Q2 2017: EUR 573.6 million). The Group's total revenue climbed by 11.6% to EUR 719.5 million after it had reached EUR 644.5 million the year before.
The Group's EBT for the second quarter came to EUR 82.7 million, some 25.6% higher than the previous year's figure of EUR 65.8 million.
Against the background of the first six months' dynamic business performance the Managing Board maintains its outlook for the full fiscal year 2018, expecting to see a significant increase in consolidated operating revenue combined with a significant growth in Group EBT compared to 2017.
In the Vehicle Rental Business Unit the operative highlights of the first six months of 2018 were, among others, as follows:
As at 30 June 2018 the number of Sixt rental stations stood at 2,177 worldwide (corporate and franchise stations) against the 2,211 stations recorded at 31 December 2017. The number of stations in the Sixt corporate countries expanded slightly to 1,039 (31 December 2017: 1,036 stations). In Germany the network of stations at the end of the first half-year came to 520 stations (31 December 2017: 517 stations). The international franchise network recorded a decrease of stations by 37 to 1,138 (31 December 2017: 1,175 stations).
The average number of vehicles in Germany and other countries (excluding franchisees) for the first six months of 2018 rose to 121,100 compared to an average of 107,400 for the same period of 2017. This is an increase of 12.8% and reflects the Group's larger business volume.
| in % |
|---|
| 12.5 |
| 13.5 |
| 3.6 |
| 18.0 |
| 34.8 |
| 38.8 |
| 2.2 points |
The Vehicle Rental Business Unit continued its dynamic growth course from the previous years uninterrupted also during the first half of 2018. This development is the result of significantly higher demand coming from all customer segments. In the second quarter, which is usually strong in the seasonal course of business, the accelerated expansion in the retail and tourism business in recent years had a particularly positive effect. Foreign operations continued to be growth drivers. Sixt recorded gratifying uptake in demand above all in such holiday destinations as France, Spain and Italy, but also gained in the UK and the USA. In Germany where Sixt is by far the largest vehicle rental company, the Company likewise managed to generate still further growth from an already high level.
Rental revenue increased by 13.5% in the first six months to EUR 869.3 million (H1 2017: EUR 766.1 million). Rental revenue generated abroad climbed 19.5% to EUR 499.6 million (H1 2017: EUR 417.9 million). The share of foreign business came to 57.5% after 54.6% in the same period the year before. In Germany rental revenues increased by another 6.2% from their already high level and came to EUR 369.7 million (H1 2017: EUR 348.2 million).
Other revenue from rental business after the first six months of 2018 came to EUR 85.2 million, some 3.6% more than the corresponding prior-year figure (EUR 82.3 million).
The Business Unit's total revenue amounted to EUR 954.5 million, compared to EUR 848.3 million for the same period in 2017, a gain of 12.5%. The share of foreign operations came to EUR 534.8 million, this corresponds to 56.0%, and thus 18.0% higher than in the first half of 2017 (H1 2017: EUR 453.1 million, resp. 53.4%)
The Business Unit's half-year EBT increased 38.8% to EUR 111.5 million, and thus significantly outperformed revenue growth (H1 2017: EUR 80.3 million). The strong uptake in demand clearly overcompensated the extra expenses for the various growth measures, such as the ongoing expansion abroad and the development of new mobility products. The Business Unit's return on revenue for the first six months (in relation to operating revenue) gained 2.2 percentage points to 11.7% (H1 2017: 9.5%).
Rental revenues for the second quarter were up 14.1% to EUR 484.8 million after EUR 424.7 million in the second quarter of 2017. Including other revenue from rental business, total revenue for the quarter came to EUR 529.2 million, a gain of 13.8% on the second quarter of the last year (EUR 465.1 million).
Second quarter EBT for the Business Unit came to EUR 71.8 million, 31.2% more than in the same quarter of 2017 (Q2 2017: EUR 54.7 million).
In the Leasing Business Unit, the financial highlight of the first half of 2018 was, among others, as follows:
\ Restructuring of the Group financing completed: Sixt Leasing SE has fully repaid the loan provided to it by Sixt SE as part of its IPO in 2015. The original EUR 750 million core facility loan was completely redeemed to achieve a Group financing structure for Sixt Leasing SE that is entirely independent of Sixt SE. The remaining instalment under the core facility loan in the amount of EUR 190 million was repaid to Sixt SE as of 30 June 2018 and thus at the earliest possible date. The funds for the repayment are essentially the proceeds from a bond over EUR 250 million placed on the capital market in the second quarter for this purpose and for general Group financing. The bond has a term of four years and carries an interest rate coupon of 1.5% p.a.
The Leasing Business Unit's total number of lease contracts in and outside Germany (excluding franchise and cooperation partners) as at 30 June 2018 was around 133,800 contracts, some 0.7% up on the number at the end of the year 2017 (around 132,900 contracts). In the second quarter, the limited availability of some vehicle models from manufacturers and dealers due to delays in the type-approval procedure according to WLTP impacted new business, particularly in the online retail business field. Measured by contract portfolio the Online Retail business field with the online platforms sixt-neuwagen.de and autohaus24.de became the Sixt Leasing Group's biggest business field already in the first quarter of 2018. As of 30 June 2018 the number of contracts held in the private and commercial customer business climbed further to 47,000 contracts (31 December 2017: approx. 45,400 contracts; +3.6%). For the Fleet Leasing business field the number of contracts at the end of the first six months of 2018 totalled approx. 45,600, some 5.2% below the number at the end of the preceding year (around 48,100 contracts). This decrease is primarily a consequence of the strategy to only conclude on a selective basis contracts with diesel vehicles without purchase agreement. The number of contracts held by the Fleet Management business field expanded by 4.6% to around 41,200 contracts (31 December 2017: approx. 39,400 contracts).
| Key figures for the Leasing Business Unit | H1 | H1 | Change |
|---|---|---|---|
| in EUR million | 2018 | 2017 | in % |
| Operating revenue | 230.3 | 218.4 | 5.4 |
| Thereof leasing revenue | 116.9 | 112.6 | 3.8 |
| Thereof other revenue from leasing business | 113.4 | 105.9 | 7.1 |
| Thereof abroad | 28.0 | 31.8 | -12.1 |
| Sales revenue | 158.2 | 145.1 | 9.0 |
| Total revenue | 388.5 | 363.5 | 6.9 |
| Earnings before interest and taxes (EBIT) | 22.9 | 26.3 | -12.8 |
| Earnings before taxes (EBT) | 15.8 | 16.8 | -5.6 |
| Operating return on revenue (EBT/operating revenue) in % | 6.9 | 7.7 | -0.8 points |
For the first half of 2018 the Leasing Business Unit reported operating revenue of EUR 230.3 million, 5.4% more than in the same period the year before (EUR 218.4 million). While revenue in Germany climbed 8.4% to EUR 202.3 million (H1 2017: EUR 186.6 million), operating revenue outside of Germany dropped to EUR 28.0 million (H1 2017: EUR 31.8 million; -12.1%).
The sale of used leasing vehicles as well as customer cars in Fleet Management yielded proceeds for the Business Unit of EUR 158.2 million, a gain of 9.0% (H1 2017: EUR 145.1 million).
Total revenue for the Business Unit rose 6.9% during the first half of 2018 to EUR 388.5 million (H1 2017: EUR 363.5 million).
EBT for the leasing business came to EUR 15.8 million, some 5.6% down on the corresponding figure the year before (EUR 16.8 million). The operating return on revenue for the first six months of 2018 was 6.9%. Though this was 0.8 percentage points below the corresponding figure of 7.7% the year before, it still remained clearly above the long-term targeted ratio of 6%.
During the second quarter 2018 the operating revenue climbed 3.8% to EUR 112.6 million (Q2 2017: EUR 108.5 million). Sales revenue increased 9.4% to EUR 76.6 million (Q2 2017: EUR 70.0 million). As a result, total revenue for the Business Unit was EUR 189.2 million (Q2 2017: EUR 178.4 million; +6.0%).
The quarterly EBT came to EUR 7.8 million, some 6.0% down on the previous year's figure (EUR 8.3 million).
From January to June 2018 other operating income amounted to EUR 106.0 million and thus significantly above the previous year's level (H1 2017: EUR 42.0 million). The reason for this were the higher gains from foreign currency translation. A corresponding increase is also recorded in other operating expenses.
Fleet expenses and cost of lease assets increased by 12.0% to EUR 475.7 million (H1 2017: EUR 424.8 million). Especially costs for reconditioning, insurance as well as taxes and charges increased above average.
Hand in hand with the intake of new personnel in foreign operations due to expansion, personnel expenditures amounted to EUR 196.0 million, an increase by 14.8% compared to the previous year's figure (H1 2017: EUR 170.7 million).
At EUR 259.1 million depreciation and amortisation expenses for the first half of 2018 slightly increased by 2.0% (H1 2017: EUR 253.9 million) The growth is mainly attributable to the increased depreciation of lease assets, that amounted to EUR 97.8 million (H1 2017: EUR 90.3 million; +8.2%).
At EUR 370.2 million, other operating expenses for the first half of 2018 were 28.9% above the figure for the same period of the previous year (H1 2017: EUR 287.3 million). While commissions, leasing as well as marketing expenses, and in particular expenses for currency translation rose, lower risk expenses had a slightly positive effect.
For the first half of the year the Sixt Group recorded earnings before net finance costs and taxes (EBIT) of EUR 150.2 million (H1 2017: EUR 119.1 million; +26.1%). At EUR 90.9 million the second quarter's EBIT was 24.1% above the prior-year level (Q2 2017: EUR 73.3 million).
Net finance costs for the first six months compared to the previous year's figure improved from EUR -16.5 million to EUR 176.8 million (>-100%). The main reason for this was the positive result from the disposal of the DriveNow stake. By contrast, net interest income deteriorated slightly due to the higher financing volume.
As a result, the Group reports an EBT of EUR 326.9 million. This figure includes the pre-tax income of EUR 196.1 million from the sale of the stake in the DriveNow joint venture in the first quarter. Without this non-recurring effect, reported EBT for the first six months amounts to EUR 130.8 million (H1 2017: EUR 102.6 million; +27.5%). EBT for the second quarter was EUR 82.7 million, or 25.6% more than in the same quarter the year before (Q2 2017: EUR 65.8 million).
The consolidated profit after taxes and before minority interests for the period amounted to EUR 280.7 million (H1 2017: EUR 72.9 million; >+100%). For the second quarter 2018 the Group reported a profit after taxes and before minority interests of EUR 66.1 million (Q2 2017: EUR 47.3 million; +39.8%).
After allowing for earnings attributable to minority interests – which are almost exclusively the free float shareholders of Sixt Leasing SE – the consolidated profit after taxes came to EUR 274.0 million (H1 2017: EUR 65.6 million).
On the basis of 46.94 million outstanding shares (weighted average for the first six months for ordinary and preference shares taking due account of treasury shares; previous year: 46.94 million shares outstanding) earnings per share (basic) for the first six months amounted to EUR 5.84, after EUR 1.40 in the prior-year period. The potential dilutive effect of stock options issued as part of the employee participation programme (Matching Stock Programme MSP 2012) is insignificant, so that no adjustment is made.
As at reporting date on 30 June 2018, the Group's total assets, at EUR 5.63 billion, were EUR 1.14 billion higher than at 31 December 2017 (EUR 4.49 billion).
Within the non-current assets the lease assets continue to be the most significant item. At EUR 1.26 billion as per 30 June 2018 they were EUR 45.8 million higher than the figure reported at the end of 2017 (EUR 1.22 billion). All in all, non-current assets were up EUR 82.0 million to EUR 1.55 billion (31 December 2017: EUR 1.47 billion).
Current assets increased from EUR 3.02 billion in December 2017 by EUR 1.06 billion to EUR 4.08 billion at reporting date. This was essentially due to higher totals reported for rental assets of EUR 3.04 billion (31 December 2017: EUR 2.08 billion) and other receivables and assets of EUR 386.9 million (31 December 2017: EUR 275.2 million). As at reporting date the Group's cash and bank balances came to EUR 100.5 million (31 December 2017: EUR 87.6 million).
Despite the record distribution of the annual dividends of Sixt SE and Sixt Leasing SE of EUR 193.8 million, the equity of the Sixt Group was EUR 105.6 million above the level at the end of 2017 (EUR 1.18 billion) at EUR 1.28 billion. Given the growth and seasonal driven expansion of total assets, the equity ratio decreased to 22.8% (31 December 2017: 26.2%). Nonetheless, it remains above the specified minimum level of 20% and on a level far above the average for the rental and leasing industry.
Non-current liabilities and provisions rose as per reporting date, 30 June 2018, by EUR 469.6 million to EUR 2.20 billion (31 December 2017: EUR 1.73 billion). This was mainly due to additional funds from the bonds issued by Sixt SE and Sixt Leasing SE in the first half of the year totalling EUR 500 million and a slight increase in ABS financing.
Current financial liabilities and provisions as at 30 June 2018 totalled EUR 2.15 billion, and were thus EUR 567.0 million above the figure at the end of 2017 (EUR 1.58 billion). This is the result of higher financial liabilities, which grew by EUR 406.2 million to EUR 997.2 million (31 December 2017: EUR 591.0 million) due to the expansion of the commercial paper financing as well as the reporting date related increased trade payables, which rose by EUR 99.0 million to EUR 790.0 million (31 December 2017: EUR 691.0 million).
As at the end of the first half of 2018, the Sixt Group reported gross cash flows of EUR 371.0 million (H1 2017: EUR 312.7 million). Adjusted for changes in working capital this results in a cash outflow from operating activities of EUR 841.7 million for the first six months, which is primarily the result of the seasonal increase in the rental vehicles and further expansion of the leasing fleet (H1 2017: cash outflow of EUR 280.5 million).
Investing activities led to a cash inflow of EUR 167.2 million (H1 2017: cash outflow of EUR 15.6 million), mainly due to the divestment of the DriveNow stake. This was offset by investments in intangible assets and property and equipment.
Financing activities led to a cash inflow of EUR 687.4 million (H1 2017: cash inflow of EUR 290.6 million), primarily due to taking out commercial papers as well as payments received related to the bonds issued by Sixt SE and Sixt Leasing SE.
After changes relating to exchange rates and other factors, total cash flows resulted in an increase in cash and cash equivalents as at 30 June 2018 of EUR 12.9 million (H1 2017: decrease of EUR 6.1 million). Cash and cash equivalents correspond to the balance sheet item "cash and bank balances".
In the period from January to June 2018 Sixt added around 148,800 vehicles to the rental and leasing fleets (H1 2017: approx. 121,400 vehicles) with a total value of EUR 4.02 billion (H1 2017: EUR 3.43 billion). This corresponds to an increase of around 22.6% in the number of vehicles and 17.2% in the volume of investments.
No events of special significance for the net assets, financial position and results of operations of the Sixt Group occurred after the reporting date as at 30 June 2018.
Following the encouraging performance in the first quarter, the Managing Board of Sixt SE had already upgraded its earnings expectations for the full fiscal year 2018 and confirmed its previous revenue projections in its notification dated 25 April 2018. This expectation is confirmed after the equally pleasing second quarter.
Sixt therefore continues to expect that the consolidated EBT for 2018 will be significantly higher than in the previous year (2017: EUR 287.3 million). This statement does not take into account the earnings contribution of around EUR 196 million from the sale of the stake in DriveNow. Consolidated operating revenue is also expected to increase significantly compared to the previous year (EUR 2,309.3 million).
The risk and opportunity profile of the Sixt Group in the first six months of 2018 has not changed significantly as against the information provided in the Group Management Report in the Annual Report 2017. The Annual Report 2017 contains extensive details of the risks the Company faces, its risk management system, and its internal control and risk management system relating to its accounting procedures.
For further information on significant business transactions with related parties please refer to the section "Related party disclosures" in the condensed notes to the interim consolidated financial statements for the period from 1 January to 30 June 2018.
| Consolidated Income Statement | H1 | H1 | Q2 | Q2 |
|---|---|---|---|---|
| in EUR thou. | 2018 | 2017 | 2018 | 2017 |
| Revenue | 1,345,219 | 1,213,773 | 719,531 | 644,484 |
| Other operating income | 106,006 | 41,965 | 58,881 | 22,535 |
| Fleet expenses and cost of lease assets | 475,730 | 424,765 | 238,573 | 219,630 |
| Personnel expenses | 195,971 | 170,716 | 104,490 | 89,400 |
| Depreciation and amortisation expense | 259,137 | 253,944 | 136,048 | 138,275 |
| Other operating expenses | 370,234 | 287,254 | 208,402 | 146,453 |
| Earnings before interest and taxes (EBIT) | 150,153 | 119,059 | 90,899 | 73,262 |
| Net finance costs | 176,752 | -16,457 | -8,231 | -7,453 |
| Thereof result from at-equity measured investments | -1,970 | -2,862 | - | -1,120 |
| Earnings before taxes (EBT) | 326,904 | 102,602 | 82,668 | 65,809 |
| Income tax expense | 46,188 | 29,733 | 16,545 | 18,498 |
| Consolidated profit | 280,717 | 72,869 | 66,122 | 47,311 |
| Of which attributable to minority interests | 6,686 | 7,263 | 3,271 | 3,750 |
| Of which attributable to shareholders of Sixt SE | 274,031 | 65,606 | 62,851 | 43,560 |
| Earnings per share - basic (in EUR) | 5.84 | 1.40 | 1.34 | 0.93 |
| Earnings per share - diluted (in EUR) | 5.84 | 1.40 | 1.34 | 0.93 |
| Consolidated statement of comprehensive income | H1 | H1 | ||
| in EUR thou. | 2018 | 2017 | ||
| Consolidated profit | 280,717 | 72,869 | ||
Other comprehensive income (not recognised in the income statement) 4,545 -10,505
Total comprehensive income 285,262 62,364
Of which attributable to minority interests 6,076 7,160 Of which attributable to shareholders of Sixt SE 279,185 55,204
Currency translation gains/losses 5,218 -10,505 Changes in the fair value of derivative financial instruments in hedge relationship -673 -
Components that could be recognised in the income statement in future
| Assets | ||
|---|---|---|
| in EUR thou. | 30 Jun. 2018 | 31 Dec. 2017 |
| Non-current assets | ||
| Goodwill | 27,837 | 20,188 |
| Intangible assets | 29,377 | 25,408 |
| Property and equipment | 199,975 | 180,292 |
| Lease assets | 1,264,994 | 1,219,209 |
| At-equity measured investments | - | 1,973 |
| Financial assets | 3,048 | 915 |
| Other receivables and assets | 5,522 | 6,098 |
| Deferred tax assets | 23,575 | 18,260 |
| Total non-current assets | 1,554,328 | 1,472,344 |
| Current assets | ||
| Rental vehicles | 3,039,723 | 2,075,995 |
| Inventories | 68,649 | 75,829 |
| Trade receivables | 469,140 | 493,875 |
| Other receivables and assets | 386,940 | 275,213 |
| Income tax receivables | 13,882 | 10,136 |
| Cash and bank balances | 100,498 | 87,585 |
| Total current assets | 4,078,832 | 3,018,633 |
| Total assets | 5,633,159 | 4,490,978 |
| Equity and liabilities | ||
|---|---|---|
| in EUR thou. | 30 Jun. 2018 | 31 Dec. 2017 |
| Equity | ||
| Subscribed capital | 120,175 | 120,175 |
| Capital reserves | 243,081 | 242,512 |
| Other reserves | 800,791 | 696,148 |
| Minority interests | 119,373 | 119,020 |
| Total equity | 1,283,421 | 1,177,854 |
| Non-current liabilities and provisions | ||
| Provisions for pensions and similar obligations | 2,115 | 1,922 |
| Other provisions | 1,352 | 1,814 |
| Financial liabilities | 2,166,129 | 1,700,080 |
| Other liabilities | 900 | 240 |
| Deferred tax liabilities | 28,132 | 24,928 |
| Total non-current liabilities and provisions | 2,198,628 | 1,728,984 |
| Current liabilities and provisions | ||
| Other provisions | 108,636 | 122,895 |
| Income tax liabilities | 61,953 | 47,933 |
| Financial liabilities | 997,240 | 591,027 |
| Trade payables | 789,952 | 690,998 |
| Other liabilities | 193,329 | 131,286 |
| Total current liabilities and provisions | 2,151,111 | 1,584,140 |
| Total equity and liabilities | 5,633,159 | 4,490,978 |
| Consolidated cash flow statement | H1 | H1 |
|---|---|---|
| in EUR thou. | 2018 | 2017 |
| Operating activities | ||
| Consolidated profit | 280,717 | 72,869 |
| Income taxes recognised in income statement | 52,412 | 28,435 |
| Income taxes paid | -41,710 | -34,781 |
| Financial result recognised in income statement1 | 17,583 | 15,669 |
| Interest received | 398 | 566 |
| Interest paid | -22,047 | -22,459 |
| Dividends received | 300 | 325 |
| Depreciation and amortisation | 259,137 | 253,944 |
| Income from disposal of fixed assets | -4,398 | -5,110 |
| Income from disposal of financial assets | -196,085 | -1,750 |
| Other (non-)cash expenses and income | 24,744 | 4,963 |
| Gross cash flow | 371,049 | 312,673 |
| Proceeds from disposal of lease assets | 134,419 | 118,672 |
| Payments for investments in lease assets | -280,906 | -281,266 |
| Change in rental vehicles, net | -1,112,983 | -565,827 |
| Change in inventories | 7,179 | 398 |
| Change in trade receivables | 24,736 | -1,383 |
| Change in trade payables | 98,954 | 169,830 |
| Change in other net assets | -84,188 | -33,585 |
| Net cash flows used in operating activities | -841,739 | -280,487 |
| Investing activities | ||
| Proceeds from disposal of intangible assets, property and equipment | 1 | 1,605 |
| Proceeds from disposal of financial assets | 209,000 | 1,823 |
| Payments for investments in intangible assets, property and equipment | -35,761 | -19,008 |
| Payments for investments in financial assets | -79 | -60 |
| Payments for acquisitions less acquired cash and cash equivalents | -5,982 | - |
| Payments for investments in short-term financial assets | - | -84,998 |
| Proceeds from disposal of short-term financial assets | - | 85,000 |
| Net cash flows from/used in investing activities | 167,179 | -15,638 |
| Financing activities | ||
| Payments made due to the purchase of treasury shares | -2,570 | -1,083 |
| Payments made for the purchase of minority interests | - | -665 |
| Dividends paid | -193,849 | - |
| Payments received from taken out borrower's note loans, bonds and bank loans | 603,282 | 489,176 |
| Payments made for redemption of borrower's note loans, bonds and bank loans | -328,550 | -351,933 |
| Payments made for redemption of/payments received from taken out short-term financial liabilities2 | 609,082 | 155,151 |
| Net cash flows from financing activities | 687,395 | 290,645 |
| Net change in cash and cash equivalents | 12,835 | -5,479 |
| Effect of exchange rate changes on cash and cash equivalents | 78 | -659 |
| Changes in the scope of consolidation | - | 4 |
| Cash and cash equivalents at 1 Jan. | 87,585 | 47,028 |
| Cash and cash equivalents at 30 Jun. | 100,498 | 40,893 |
1 Excluding income from investments
2 Short-term borrowings with terms of up to three months and quick turnover
| Consolidated statement of changes in equity in EUR thou. |
Subscribed capital |
Capital reserves | Other reserves1 | Treasury shares | Equity attributable to shareholders of Sixt SE |
Minority interests | Total equity |
|---|---|---|---|---|---|---|---|
| 31 Dec. 2017 | 120,175 | 242,512 | 696,148 | - | 1,058,834 | 119,020 | 1,177,854 |
| Adjustment on adoption of IFRS 9 | - | - | 13,563 | - | 13,563 | 11 | 13,574 |
| 1 Jan. 2018 | 120,175 | 242,512 | 709,710 | - | 1,072,397 | 119,031 | 1,191,428 |
| Consolidated profit | - | - | 274,031 | - | 274,031 | 6,686 | 280,717 |
| Dividend payments 2017 | - | - | -188,105 | - | -188,105 | -5,744 | -193,849 |
| Other comprehensive income | - | - | 5,155 | - | 5,155 | -610 | 4,545 |
| Purchase of treasury shares | - | - | - | -2,570 | -2,570 | - | -2,570 |
| Re-issuance of treasury shares | - | - | - | 2,570 | 2,570 | - | 2,570 |
| Increase due to the employee participation programme |
- | 570 | - | - | 570 | 12 | 582 |
| Other changes | - | - | - | - | - | -2 | -2 |
| 30 Jun. 2018 | 120,175 | 243,081 | 800,791 | - | 1,164,047 | 119,373 | 1,283,421 |
| 1 Jan. 2017 | 120,175 | 240,625 | 607,226 | -1,352 | 966,674 | 112,990 | 1,079,665 |
| Consolidated profit | - | - | 65,606 | - | 65,606 | 7,263 | 72,869 |
| Dividend payments 2016 | - | - | -77,788 | - | -77,788 | -5,744 | -83,532 |
| Other comprehensive income | - | - | -10,402 | - | -10,402 | -103 | -10,505 |
| Purchase of treasury shares | - | - | - | -1,083 | -1,083 | - | -1,083 |
| Re-issuance of treasury shares | - | - | - | 2,435 | 2,435 | - | 2,435 |
| Increase due to the employee participation programme |
- | 466 | - | - | 466 | 19 | 485 |
| Changes in the scope of consolidation | - | - | 60 | - | 60 | - | 60 |
| Transfer to capital reserves | - | 2,854 | -2,854 | - | - | - | - |
| Other changes | - | - | 220 | - | 220 | -19 | 201 |
| 30 Jun. 2017 | 120,175 | 243,946 | 582,068 | - | 946,189 | 114,406 | 1,060,594 |
1 Including retained earnings
The consolidated financial statements of Sixt SE as at 31 December 2017 were prepared in accordance with International Financial Reporting Standards (IFRS), as adopted by the EU and effective at the closing date.
The same accounting policies as in the 2017 consolidated financial statements are principally applied in the interim consolidated financial statements as at 30 June 2018, which were prepared on the basis of International Accounting Standard (IAS) 34 (Interim Financial Reporting). A detailed description of the accounting principles, consolidation methods and accounting policies used is published in the notes to the consolidated financial statements in the Annual Report 2017. Changes resulting from the first-time adoption of IFRS 9 and IFRS 15 are presented in the section "Standards and interpretations applied for the first time in the current financial year". In addition, in the financial year 2018 some financial instruments have been designated in hedging relationships and were presented in accordance with hedge accounting provisions.
The Group uses individual financial instruments, including derivatives, as part of cash flow hedges. The details of the hedging relationship between underlying and hedging transaction as well as the relevant risk management objectives and strategies are documented at the start of the hedge accounting. In addition, both at the inception of the hedging relationship and over the course of the relationship, it is regularly documented whether the hedging instrument designated in the hedging relationship meets the requirements for hedge effectiveness.
The effective portion of a change in the fair value of derivatives, which are suitable for cash flow hedges and which have been designated as such, is recognised in other comprehensive income under the item "Changes in the fair value of derivative financial instruments in hedge relationship". The gain or loss from the ineffective portion is recognised immediately in net finance costs. Amounts recognised in other comprehensive income are transferred to the income statement during the period in which the hedged underlying transaction is also carried through profit or loss. They are recognised in the same item of the income statement that also lists the underlying transaction.
Preparation of interim consolidated financial statements requires management to make assumptions and estimates that affect the reported amounts of assets, liabilities and provisions, as well as of income and expenses. Actual amounts may differ from these estimates. The results presented in the interim financial statements are not necessarily indicative of the results of future reporting periods or of the full financial year.
Due to rounding it is possible that individual figures presented in these interim financial statements may not add up exactly to the totals shown and that the half-year figures listed may not follow from adding up the individual quarterly figures. Furthermore, the percentage figures presented may not exactly reflect the absolute figures they relate to.
The interim consolidated financial statements were prepared and published in euros.
The accompanying interim consolidated financial statements as at 30 June 2018 have not been audited or reviewed by the Company's auditors, Deloitte GmbH Wirtschaftsprüfungsgesellschaft, Munich.
IFRS 15 (Revenue from contracts with customers) as well as the clarification to IFRS 15 and IFRS 9 (Financial instruments) have been applied for the first time as of 1 January 2018. The resulting changes are described below.
IFRS 15 (Revenue from contracts with customers) includes stipulations on the amount, timing and/or period during which revenue from contracts with customers is to be recognised. In accordance with the transition approach of IFRS 15, the Group has applied the new requirements retrospectively as of 1 January 2018. Comparative information for prior periods has not been restated.
In the Vehicle Rental Business Unit, the Group generates revenue from short-term rentals of vehicles and other revenue from rental business above all from insurance recoveries as well as licence and franchise fees. The adoption of IFRS 15 does not result in changes in the Vehicle Rental Business Unit, neither in the amount of revenue, nor in the timing and/or period during which revenue is realised. Prepayments received from customers for the rental of vehicles are contract liabilities; these continue to be included in the other liabilities position.
In the Leasing Business Unit the Group generates leasing revenue from contractually agreed lease instalments and revenue from contractually agreed service components as well as revenue from sale of used leasing vehicles. Leasing revenues do not fall within the scope of IFRS 15 but continue to be recognised according to IAS 17. According to contractual agreements individual service components may constitute a separate service commitment or several service components together as a bundle of services can form a joint service commitment. The related revenues are recognised as soon as the service is rendered and the amount of the revenue can be determined reliably. The application of IFRS 15 did not result in any changes from the previous accounting procedures.
In accordance with the transitional provisions contained in IFRS 9, the Group has applied retrospectively the new requirements relating to classification and measurement of financial instruments, from 1 January 2018. The comparative information for previous periods has not been restated.
Pursuant to IFRS 9, the Group classifies financial instruments in the following three categories: at amortised cost, at fair value through profit or loss and at fair value through other comprehensive income. Following the adoption of IFRS 9, trade receivables, other current as well as other non-current receivables will continue to be measured at amortised cost. Investments, that were previously classified as available for sale financial assets, are classified at fair value through profit or loss. The following table presents the changes from the classification of financial instruments:
| Classification of financial instruments as at 1 January 2018 | IAS 39 measurement category | IFRS 9 measurement category |
|---|---|---|
| Financial assets | ||
| Financial assets | Available for Sale (AfS) | Fair value through profit or loss |
| Interest rate and currency derivatives | Financial Assets Held for Trade (FAHfT) | Fair value through profit or loss |
| Trade receivables, Other receivables | Loans and Receivables (LaR) | At amortised cost |
| Financial liabilities | ||
| Bonds, Borrower's note loans/Commercial paper, Liabilities to banks, Trade payables, | Financial Liabilities Measured at | |
| Other financial liabilities, Financial other liabilities | Amortised Cost (FLAC) | At amortised cost |
| Interest rate and currency derivatives | Financial Assets Held for Trade (FAHfT) | Fair value through profit or loss |
IFRS 9 introduces for the first time a model for determining impairments based on expected credit losses. The impairment model applies to financial assets classified at amortised cost and finance lease receivables. The Group applies the simplified approach described in IFRS 9 to trade receivables, receivables from insurances and finance lease receivables, whereby an impairment allowance in the amount of expected credit losses over the lifetime of the receivable is recognised for all instruments irrespective of their credit quality. Upon the first-time adoption of IFRS 9, the Group has recognised the change in valuation allowance as of 1 January 2018 on trade receivables and receivables from insurances in equity under other reserves.
The application of IFRS 9 had no material impact on the balance sheet. The effects of first-time application of IFRS 9 on the carrying amounts as of 1 January 2018 relate to financial assets (carrying amount under IAS 39: EUR 915 thousand; carrying amount under IFRS 9: EUR 2,863 thousand), trade receivables (carrying amount under IAS 39: EUR 494 million; carrying amount under IFRS 9: EUR 506 million) and receivables from insurances (carrying amount under IAS 39: EUR 26 million; carrying amount under IFRS 9: EUR 30 million). These changes from first-time adoption of IFRS 9 have been recognised in equity under other reserves. The application of IFRS 9 had no further impact on the carrying amounts of financial instruments. The comparative prior-year figures were not adjusted.
As a result of the changes in the Group's relevant accounting policies from the first-time application of IFRS 9, the opening balances as at 1 January 2018 have been adjusted. The prior-year comparative figures were not adjusted. The effects of the transition have been recognised in equity under other reserves.
| Adjusted opening balances as at 1 January 2018 | Adjustments | ||
|---|---|---|---|
| in EUR thou. | 31 Dec. 2017 | IFRS 9 | 1 Jan. 2018 |
| Non-current assets | |||
| Financial assets | 915 | 1,948 | 2,863 |
| Deferred tax assets | 18,260 | -3,946 | 14,314 |
| Current assets | |||
| Trade receivables | 493,875 | 11,749 | 505,624 |
| Other receivables and assets | 275,213 | 4,310 | 279,523 |
| Equity | |||
| Other reserves | 696,148 | 13,563 | 709,710 |
| Minority interests | 119,020 | 11 | 119,031 |
| Non-current liabilities and provisions | |||
| Deferred tax liabilities | 24,928 | 487 | 25,415 |
The following new and/or amended standards have been ratified by the IASB but are not yet mandatory. The Company has not applied these regulations prematurely.
| Standard/ Interpretation | Adoption by European Commission |
Applicable as at | |
|---|---|---|---|
| IFRS 14 | Regulatory deferral accounts | No | 1 Jan. 2016 |
| IFRS 16 | Leases | 31 Oct. 2017 | 1 Jan. 2019 |
| IFRS 17 | Insurance contracts | No | 1 Jan. 2021 |
| Amendments to IFRS 9 | Prepayment features with negative compensation | 22 Mar. 2018 | 1 Jan. 2019 |
| Amendments to IFRS 10 and IAS 28 | Sale and contribution of assets between an investor and its associate or joint venture | No | Deferred indefinitely |
| Amendments to IAS 19 | Plan amendments, curtailment or settlement | No | 1 Jan. 2019 |
| Amendments to IAS 28 | Long-term interests in associates and joint ventures | No | 1 Jan. 2019 |
| IFRIC Interpretation 23 | Uncertainty over income tax treatments | No | 1 Jan. 2019 |
| Annual improvement project 2015-2017 | No | 1 Jan. 2019 | |
| Amendments to References to the Conceptual Framework in IFRS Standards | No | 1 Jan. 2020 | |
The effects of the application of IFRS 16 are presently still being investigated. The Group continues to assume that for operate lease agreements used to refinance the rental fleet, which are according to IAS 17 not recognised under the Group's assets, as well as for part of the rental agreements for business premises, e.g. rental offices, the corresponding right of use assets and lease liabilities need to be recognised under IFRS 16 insofar as the exemptions for short-term leases or low-value assets are not applicable. For further information please refer to the consolidated financial statements of Sixt SE as of 31 December 2017 in the Annual Report 2017 (Notes to the consolidated financial statements "1.2 General disclosures on the consolidated financial statements – IFRS 16 – Leases").
Sixt SE, domiciled in Zugspitzstrasse 1, 82049 Pullach, Germany, is entered in section B of the commercial register at the Munich Local Court, under docket number 206738.
Compared to reporting date as at 31 December 2017 SXT DR Services GmbH, Pullach, a company founded by the Group, has been consolidated for the first time. Furthermore, in April 2018 the Group has acquired 100% of the shares of Mile Fleet, LLC, Florida, for a cash payment of EUR 6.0 million and a contingent consideration in the amount of EUR 0.6 million. As a result of the transaction, a goodwill in the amount of EUR 6.6 million has been recorded.
Revenue is broken down as follows:
| Revenue | Germany | Abroad | Total | Change | |||
|---|---|---|---|---|---|---|---|
| in EUR million | H1 2018 | H1 2017 | H1 2018 | H1 2017 | H1 2018 | H1 2017 | in % |
| Vehicle Rental Business Unit | |||||||
| Rental revenue | 369.7 | 348.2 | 499.6 | 417.9 | 869.3 | 766.1 | 13.5 |
| Other revenue from rental business |
50.0 | 47.1 | 35.3 | 35.2 | 85.2 | 82.3 | 3.6 |
| Total | 419.7 | 395.3 | 534.8 | 453.1 | 954.5 | 848.3 | 12.5 |
| Leasing Business Unit | |||||||
| Leasing revenue | 104.3 | 97.0 | 12.6 | 15.5 | 116.9 | 112.6 | 3.8 |
| Other revenue from leasing business |
98.1 | 89.6 | 15.3 | 16.3 | 113.4 | 105.9 | 7.1 |
| Sales revenue | 148.6 | 131.0 | 9.6 | 14.1 | 158.2 | 145.1 | 9.0 |
| Total | 351.0 | 317.6 | 37.5 | 45.9 | 388.5 | 363.5 | 6.9 |
| Other revenue | 2.0 | 1.9 | 0.2 | - | 2.2 | 1.9 | 16.3 |
| Group total | 772.7 | 714.8 | 572.5 | 499.0 | 1,345.2 | 1,213.8 | 10.8 |
| Revenue | Germany | Abroad | Total | Change | |||
|---|---|---|---|---|---|---|---|
| in EUR million | Q2 2018 | Q2 2017 | Q2 2018 | Q2 2017 | Q2 2018 | Q2 2017 | in % |
| Vehicle Rental Business Unit | |||||||
| Rental revenue | 195.4 | 185.5 | 289.4 | 239.3 | 484.8 | 424.7 | 14.1 |
| Other revenue from rental business |
25.4 | 23.2 | 19.0 | 17.2 | 44.4 | 40.4 | 9.9 |
| Total | 220.8 | 208.6 | 308.4 | 256.5 | 529.2 | 465.1 | 13.8 |
| Leasing Business Unit | |||||||
| Leasing revenue | 52.5 | 48.9 | 6.3 | 7.1 | 58.8 | 56.0 | 5.0 |
| Other revenue from leasing business |
46.3 | 44.4 | 7.6 | 8.1 | 53.9 | 52.5 | 2.6 |
| Sales revenue | 71.6 | 63.0 | 4.9 | 7.0 | 76.6 | 70.0 | 9.4 |
| Total | 170.4 | 156.3 | 18.8 | 22.2 | 189.2 | 178.4 | 6.0 |
| Other revenue | 1.1 | 0.9 | 0.1 | - | 1.2 | 0.9 | 26.8 |
| Group total | 392.3 | 365.8 | 327.3 | 278.7 | 719.5 | 644.5 | 11.6 |
In the first half of 2018 other operating income increased significantly to EUR 106.0 million (H1 2017: EUR 42.0 million), in particular due to higher gains from foreign currency translation. A corresponding increase is also recorded in other operating expenses.
Fleet expenses and cost of lease assets split up as follows:
| Fleet expenses and cost of lease assets | H1 | H1 | Change |
|---|---|---|---|
| in EUR million | 2018 | 2017 | in % |
| Repairs, maintenance and reconditioning | 144.2 | 137.0 | 5.3 |
| Fuel | 53.8 | 48.4 | 11.0 |
| Insurance | 45.3 | 30.5 | 48.6 |
| Transportation | 24.0 | 21.9 | 9.8 |
| Taxes and charges | 12.4 | 10.0 | 23.4 |
| Expenses from write-downs on lease assets intended for sale | 3.1 | 2.8 | 8.1 |
| Other, including selling expenses | 193.0 | 174.2 | 10.8 |
| Group total | 475.7 | 424.8 | 12.0 |
Expenses for depreciation and amortisation are explained in more detail below:
| Depreciation and amortisation expense | H1 | H1 | Change |
|---|---|---|---|
| in EUR million | 2018 | 2017 | in % |
| Rental vehicles | 149.3 | 152.5 | -2.1 |
| Lease assets | 97.8 | 90.3 | 8.2 |
| Property and equipment | 7.9 | 7.2 | 10.3 |
| Intangible assets | 4.2 | 3.9 | 7.4 |
| Group total | 259.1 | 253.9 | 2.0 |
Other operating expenses are broken down as follows:
| Other operating expenses | H1 | H1 | Change |
|---|---|---|---|
| in EUR million | 2018 | 2017 | in % |
| Leasing expenses | 33.6 | 28.9 | 16.2 |
| Commissions | 95.9 | 81.5 | 17.7 |
| Expenses for buildings | 37.0 | 35.4 | 4.4 |
| Other selling and marketing expenses | 35.8 | 30.7 | 16.8 |
| Expenses from write-downs of receivables | 17.5 | 18.7 | -6.6 |
| Audit, legal, advisory costs, and investor relations expenses | 10.4 | 11.1 | -6.2 |
| Other personnel services | 32.5 | 32.8 | -1.1 |
| Expenses for IT and communication services | 11.8 | 9.7 | 21.2 |
| Currency translation/consolidation | 74.7 | 16.6 | >100 |
| Miscellaneous expenses | 21.0 | 21.7 | -3.2 |
| Group total | 370.2 | 287.3 | 28.9 |
Net finance costs of EUR 176.8 million (H1 2017: EUR -16.5 million) contain net interest expense of EUR -17.2 million (H1 2017: EUR -16.0 million). Net finance costs also include the income from the sale of the stake in the joint venture DriveNow in the amount of EUR 196.1 million (H1 2017: disposal of a financial asset EUR 1.8 million), a result from interest rate hedging transactions in the amount of EUR -0.4 million (H1 2017: EUR 0.3 million) as well as the result of at-equity-measured investments at EUR -2.0 million (H1 2017: EUR -2.9 million).
The income tax expense is composed of current income tax of EUR 52.4 million (H1 2017: EUR 28.4 million), as well as deferred taxes of EUR -6.2 million (H1 2017: EUR 1.3 million). Based on its earnings before taxes (EBT), the Sixt Group's tax rate was 14% in the period under review (H1 2017: 29%).
Earnings per share are as follows:
| Earnings per share - basic | H1 2018 | H1 2017 | |
|---|---|---|---|
| Consolidated profit for the period after minority interests | in EUR thou. | 274,031 | 65,606 |
| Profit attributable to ordinary shares | in EUR thou. | 177,061 | 42,225 |
| Profit attributable to preference shares | in EUR thou. | 96,969 | 23,381 |
| Weighted average number of ordinary shares | 30,367,112 | 30,367,112 | |
| Weighted average number of preference shares | 16,573,958 | 16,576,246 | |
| Earnings per ordinary share | in EUR | 5.83 | 1.39 |
| Earnings per preference share | in EUR | 5.85 | 1.41 |
The profit/loss attributable to preference shares considers the additional dividend of EUR 0.02 per preference share payable in accordance with the Articles of Association for preference shares carrying dividend rights in the financial year. The weighted average number of shares is calculated on the basis of the proportionate number of shares per month for each category of shares, taking due account of the respective number of treasury shares. Earnings per share are calculated by dividing the profit or loss attributable to each class of shares by the weighted average number of shares per class of shares. The potential dilutive effect of stock options issued as part of the Matching Stock Programme MSP 2012 is insignificant, so that no adjustment is made.
The proposal to pay out a dividend of EUR 1.95 per ordinary share and EUR 1.97 per preference share as well as a special dividend of EUR 2.05 for each ordinary and preference share was resolved unchanged by the Annual General Meeting on 21 June 2018. This corresponds to a total distribution of EUR 188,105 thousand.
Lease assets increased by EUR 45.8 million to EUR 1.26 billion as at reporting date (31 December 2017: EUR 1.22 billion). The increase is primarily the result of an increased volume of contracts in the Online Retail business field.
The rental vehicles item increased for seasonal reasons by EUR 963.7 million as against 31 December 2017, up from EUR 2.08 billion to EUR 3.04 billion.
Other receivables and assets can be broken down as follows:
| Other receivables and assets | ||
|---|---|---|
| in EUR million | 30 Jun. 2018 | 31 Dec. 2017 |
| Financial other receivables and assets | ||
| Finance lease receivables | 4.3 | 4.4 |
| Receivables from affiliated companies | 1.3 | 0.9 |
| Receivables from other investees | 0.0 | 0.7 |
| Miscellaneous assets | 58.0 | 57.3 |
| Non-financial other receivables and assets | ||
| Other recoverable taxes | 105.2 | 23.8 |
| Insurance claims | 31.8 | 25.8 |
| Deferred income | 28.7 | 19.2 |
| Delivery claims for vehicles of the rental and lease fleets | 163.1 | 149.1 |
| Group total | 392.5 | 281.3 |
| Thereof current | 386.9 | 275.2 |
| Thereof non-current | 5.5 | 6.1 |
The share capital of Sixt SE as at 30 June 2018 amounts unchanged to EUR 120,174,996 (31 December 2017: EUR 120,174,996).
The share capital is composed of:
| Composition of the share capital | No-par value shares |
Nominal value in EUR |
No-par value shares |
Nominal value in EUR |
|---|---|---|---|---|
| 30 Jun. 2018 | 31 Dec. 2017 | |||
| Ordinary shares | 30,367,112 | 77,739,807 | 30,367,112 | 77,739,807 |
| Non-voting preference shares | 16,576,246 | 42,435,190 | 16,576,246 | 42,435,190 |
| Total | 46,943,358 | 120,174,996 | 46,943,358 | 120,174,996 |
By resolution of the Annual General Meeting of 2 June 2016 the Managing Board, with consent of the Supervisory Board, is authorised, as specified in the proposed resolution, to acquire in the period up to and including 1 June 2021 ordinary bearer shares and/or preference bearer shares of the Company in the amount of up to 10% of the Company's share capital at the time of the authorisation or, if lower, at the time of the exercise – including with the use of derivatives in the amount of up to 5% of the share capital. The authorisation can be exercised wholly or partially, on one or more occasions for any purpose permitted by law. Acquisitions for the purpose of trading in treasury shares are excluded. On the basis of the aforementioned authorisation the Managing Board decided in February 2018, with the consent of the Supervisory Board, for a share buyback programme, which serves to meet the Company's obligations to grant preference shares to employees and members of the Company's administrative and management bodies and their affiliated companies under the Matching Stock Programme (MSP 2012). The share buyback programme was completed on 21 February 2018. At that time, Sixt SE repurchased in total 43,685 preference shares with a total value of EUR 2.6 million (excluding incidental purchase expenses). As at reporting date the authorisation has not yet been fully exercised.
Minority interests are related entirely to the Leasing Business Unit. Since the IPO of Sixt Leasing SE in May 2015 the interest Sixt SE holds in Sixt Leasing SE and its subsidiaries is unchanged at 41.9%.
By resolution of the Annual General Meeting of 2 June 2016 the Managing Board was authorised, as specified in the proposed resolution, to increase the share capital on one or more occasions in the period up to and including 1 June 2021, with the consent of the Supervisory Board, by up to a maximum of EUR 35,840,000 by issuing new no-par value bearer shares against cash and/or non-cash contributions, whereby the shareholders' pre-emptive rights may be excluded under certain conditions (Authorised capital 2016).
By resolution of the Annual General Meeting of 2 June 2016 the Managing Board, with the consent of the Supervisory Board, was authorised, as specified in the proposed resolution, to issue on one or more occasions in the period up to and including 1 June 2021 convertible and/or bonds with warrants registered in the name of the holder and/or bearer of up to a maximum of EUR 350,000,000 with a fixed or open-ended term and to grant conversion or option rights to the holder and/or creditor of convertible bonds to acquire a total of up to 6,000,000 new ordinary bearer shares in Sixt SE and/or to provide corresponding conversion rights for the Company.
In this context the company's share capital has been conditionally increased strength of the resolution taken by the Annual General Meeting on 2 June 2016 by up to EUR 15,360,000 (Conditional capital 2016). The conditional capital increase serves to grant shares to the holders or creditors of convertible bonds and holders of option rights from bonds with warrants, insofar as the conversion or option rights from the aforementioned bonds are actually exercised or the conversion obligations from such bonds are fulfilled and provided that no other form of settlement is being used.
By resolution of the Annual General Meeting of 30 June 2017 the Managing Board, with the consent of the Supervisory Board, is authorised, to issue on one or more occasions in the period up to and including 29 June 2022 profit participation bonds and/or rights registered in the name of the holder and/or bearer by up to a maximum of EUR 350,000,000 with a fixed or open-ended term against cash and/or non-cash contributions. The profit participation bonds and/or rights issued under this authorisation may not provide for conversion or subscription rights to shares of the Company.
Financial liabilities are broken down as follows:
| Financial liabilities | Residual term of up to 1 year | Residual term of 1 to 5 years | Residual term of more than 5 years | ||||
|---|---|---|---|---|---|---|---|
| in EUR million | 30 Jun. 2018 | 31 Dec. 2017 | 30 Jun. 2018 | 31 Dec. 2017 | 30 Jun. 2018 | 31 Dec. 2017 | |
| Borrower's note loans | 43.0 | - | 344.8 | 387.7 | 179.1 | 179.1 | |
| Bonds | - | 249.9 | 996.2 | 748.7 | 246.5 | - | |
| Commercial paper | 514.5 | 25.0 | - | - | - | - | |
| Liabilities to banks | 429.5 | 299.3 | 327.6 | 310.4 | 61.3 | 62.8 | |
| Finance lease liabilities | 1.8 | 2.4 | 10.5 | 11.3 | - | - | |
| Other liabilities | 8.4 | 14.4 | - | - | - | - | |
| Group total | 997.2 | 591.0 | 1,679.2 | 1,458.2 | 487.0 | 241.9 | |
Borrower's note loans were raised in several tranches, with nominal terms between four and seven years. The borrower's note loans reported with short-term residual maturity are due for repayment in the first half of 2019.
The bonds relate mainly to the 2014/2020 bond issued in 2014 and the 2016/2022 bond issued in 2016 by Sixt SE as well as the 2017/2021 bond issued in 2017 by Sixt Leasing SE (each with a nominal value of EUR 250 million). Furthermore Sixt SE and Sixt Leasing SE each placed a bond with a nominal value of EUR 250 million in the period under review. The bond of Sixt SE was issued with a coupon of 1.5% p.a. and has a maturity until 2024, the bond of Sixt Leasing SE was issued with a coupon of 1.5% p.a. and has a maturity until 2022.
The liabilities to banks result mainly from the ABS programme launched by Sixt Leasing SE and a long-term real estate loan.
As was the case at year-end 2017, current other provisions primarily comprise provisions for taxes, legal costs and the operating rental business (fleet related costs), and employee-related provisions.
The following table shows the carrying amounts and fair values of the individual financial assets and liabilities for each category of financial instruments. The fair value of financial assets and liabilities that are not regularly measured at fair value, but for which the fair value is to be specified, are assigned in the following table to the measurement levels of the fair value hierarchy.
Carrying amounts and fair values by IFRS 9 measurement category:
| Financial instruments | IFRS 9 | Measurement basis | Carrying amount | Fair value | ||
|---|---|---|---|---|---|---|
| in EUR thou. | measurement category1 |
for fair value | 30 Jun. 2018 | 31 Dec. 2017 | 30 Jun. 2018 | 31 Dec. 2017 |
| Non-current assets | ||||||
| Financial assets | FVTPL | Level 3 | 3,048 | 915 | 3,048 | 915 |
| Finance lease receivables | IAS 17 | 2,318 | 2,743 | 2,398 | 2,833 | |
| Interest rate derivatives | FVTPL | Level 2 | 11 | 399 | 11 | 399 |
| Other receivables | AC | 3,193 | 2,956 | |||
| Total | 8,570 | 7,013 | 5,456 | 4,146 | ||
| Current assets | ||||||
| Finance lease receivables | IAS 17 | 1,975 | 1,682 | 2,054 | 1,748 | |
| Currency derivatives | FVTPL | Level 2 | 167 | 3,321 | 167 | 3,321 |
| Trade receivables | AC | 469,140 | 493,875 | |||
| Other receivables | AC | 55,907 | 52,264 | |||
| Total | 527,188 | 551,142 | 2,221 | 5,069 | ||
| Non-current liabilities | ||||||
| Bonds | AC | Level 2 | 1,242,745 | 748,738 | 1,284,945 | 782,522 |
| Borrower's note loans | AC | Level 2 | 523,968 | 566,780 | 531,028 | 579,772 |
| Liabilities to banks | AC | Level 2 | 388,924 | 373,246 | 381,695 | 369,649 |
| Financial other liabilities | AC | 172 | 103 | |||
| Financial other liabilities | FVTPL | Level 3 | 341 | - | 341 | - |
| Finance lease liabilities | IAS 17 | 10,491 | 11,317 | 10,566 | 11,429 | |
| Interest rate derivatives | Hedge Accounting | Level 2 | 387 | - | 387 | - |
| Interest rate derivatives | FVTPL | Level 2 | - | 137 | - | 137 |
| Total | 2,167,029 | 1,700,320 | 2,208,961 | 1,743,508 | ||
| Current liabilities | ||||||
| Bonds | AC | Level 2 | - | 249,904 | - | 259,701 |
| Borrower's note loans/Commercial paper | AC | Level 2 | 557,480 | 25,000 | 559,032 | 25,000 |
| Liabilities to banks | AC | Level 2 | 429,502 | 299,304 | 431,496 | 302,507 |
| Finance lease liabilities | IAS 17 | 1,819 | 2,415 | 1,824 | 2,432 | |
| Trade payables | AC | 789,952 | 690,998 | |||
| Other financial liabilities | AC | 8,439 | 14,405 | |||
| Currency derivatives | FVTPL | Level 2 | 12,340 | 230 | 12,340 | 230 |
| Interest rate derivatives | FVTPL | Level 2 | 78 | - | 78 | - |
| Financial other liabilities | AC | 68,902 | 26,656 | |||
| Financial other liabilities | FVTPL | Level 3 | 275 | - | 275 | - |
| Total | 1,868,788 | 1,308,913 | 1,005,045 | 589,872 |
1 FVTPL - Fair value through profit or loss, AC - At amortised cost
The financial instruments in above table are classified into three levels depending on the measurement basis. Level 1 measurements are based on prices quoted in active markets. Level 2 measurements are based on parameters other than quoted prices that are observable either directly as prices or are indirectly derived from prices. Level 3 measurements are based on models that use parameters that are not based on observable market data, but rather on assumptions. There have been no transfers between the individual measurement levels at the reporting date.
Due to factors that change in the course of time, the reported fair values can only be regarded as indicative of the values actually realisable on the market. The fair values of the financial instruments were calculated on the basis of market data available at the balance sheet date and the methods and assumptions described below.
For current financial instruments it was assumed that the fair values correspond to the carrying amounts (amortised cost) unless specified otherwise in the table.
The fair values of the finance lease receivables reported under non-current and current assets and the bonds, borrower's note loans, finance lease liabilities and liabilities to banks reported as non-current and current liabilities were calculated as the present values of the future expected cash flows. Standard market interest rates between -0.2% p.a. and 2.2% p.a. (2017: between -0.3% p.a. and 1.7% p.a.) based on the respective maturities were used for discounting. Finance lease receivables and liabilities are measured in accordance with IAS 17. The fair values of derivatives are measured on the basis of estimated market yield curves calculated by the relevant transaction partners (banks).
The fair values determined on the basis of unobservable market data relate to equity investments and obligations for contingent consideration associated with an entity acquired in the current year. The equity investments are valued on the basis of their net assets value. The fair value of contingent consideration was determined as the present value of the expected future cash flows. A discount rate of 5.5% was applied for discounting. The estimated fair value would increase (decrease) if the expected future cash flows were higher (lower) and/or the discount rate was lower (higher).
The change in the reported carrying amounts and fair values of financial assets has resulted from additions of equity investments in the amount of EUR 278 thousand, disposals of equity investments in the amount of EUR 13 thousand, gains recognised in other reserves resulted from the first-time application of IFRS 9 in the amount of EUR 1,948 thousand and results recognised in profit or loss in the amount of EUR -81 thousand. The change in the reported carrying amounts and fair values of non-current and current financial other liabilities (level 3) has resulted from additions in the amount of EUR 581 thousand, results recognised in profit or loss in the amount of EUR 39 thousand and currency translation differences in the amount of EUR -4 thousand.
From 1 January 2018 on, hedge accounting was introduced for certain interest rate derivatives. The Group uses these financial instruments to hedge cash flows from variable interest liabilities under the asset backed securities programme. The carrying amount of the hedged underlying transaction amounted to EUR 459 million as of 30 June 2018 and is included in liabilities to banks.
The Sixt Group is active in the two main business areas of Vehicle Rental and Leasing. Activities that cannot be allocated to these segments, such as financing, holding company activities, real estate leasing, or e-commerce transactions, are combined in the Other segment. So far as results from at-equity measured investments can be directly attributed to a segment, these are displayed in the respective segment.
The segment information for the first six months of 2018 (compared with the first six months of 2017) is as follows:
| By Business Unit | Rental | Leasing | Other | Reconciliation | Group | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| in EUR million | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 |
| External revenue | 954.5 | 848.3 | 388.5 | 363.5 | 2.2 | 1.9 | - | - | 1,345.2 | 1,213.8 |
| Internal revenue | 1.8 | 2.0 | 5.8 | 5.2 | 19.8 | 16.4 | -27.4 | -23.6 | - | - |
| Total revenue | 956.3 | 850.3 | 394.3 | 368.7 | 22.0 | 18.3 | -27.4 | -23.6 | 1,345.2 | 1,213.8 |
| Fleet expenses and cost of lease assets | 236.8 | 204.0 | 246.3 | 227.5 | 0.0 | 0.0 | -7.4 | -6.8 | 475.7 | 424.8 |
| Depreciation and amortisation expense | 159.1 | 162.0 | 98.1 | 90.7 | 1.9 | 1.2 | - | - | 259.1 | 253.9 |
| EBIT1 | 127.6 | 94.7 | 22.9 | 26.3 | -0.4 | -1.9 | -0.0 | -0.1 | 150.2 | 119.1 |
| Net finance costs | -16.1 | -14.3 | -7.1 | -9.6 | 200.0 | 7.4 | 0.0 | 0.1 | 176.8 | -16.5 |
| Thereof result from at-equity measured | ||||||||||
| investments | -2.0 | -2.9 | - | - | - | - | - | - | -2.0 | -2.9 |
| EBT2 | 111.5 | 80.3 | 15.8 | 16.8 | 199.6 | 5.5 | - | - | 326.9 | 102.6 |
| Investments3 | 19.1 | 11.4 | 283.2 | 282.4 | 14.7 | 11.5 | - | -5.0 | 316.9 | 300.3 |
| Segment assets | 4,067.1 | 3,174.3 | 1,431.1 | 1,262.4 | 2,601.7 | 2,309.8 | -2,504.2 | -2,216.0 | 5,595.7 | 4,530.5 |
| Segment liabilities | 2,972.6 | 2,255.9 | 1,209.4 | 1,054.6 | 1,967.4 | 1,727.4 | -1,889.8 | -1,602.4 | 4,259.7 | 3,435.5 |
| By Region | Germany | Europe | North America | Reconciliation | Group | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| in EUR million | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 |
| Total revenue | 778.1 | 719.0 | 401.9 | 342.4 | 172.7 | 158.6 | -7.6 | -6.2 | 1,345.2 | 1,213.8 |
| Investments3 | 287.3 | 275.6 | 32.7 | 28.5 | 3.5 | 1.3 | -6.6 | -5.0 | 316.9 | 300.3 |
| Segment assets | 4,761.8 | 3,773.2 | 2,523.6 | 1,917.5 | 919.8 | 648.4 | -2,609.6 | -1,808.6 | 5,595.7 | 4,530.5 |
1 Corresponds to earnings before interest and taxes (EBIT)
2 Corresponds to earnings before taxes (EBT)
3 Excluding rental assets
There were no material changes in contingent liabilities resulting from guarantees or similar obligations in the period under review as against the 2017 consolidated financial statements.
There have been no material changes in the nature and amount of Sixt Group's transactions with related parties as of 30 June 2018 compared to those reported as of 31 December 2017. For further details please refer to the consolidated financial statements of Sixt SE as of 31 December 2017 in the Annual Report 2017 (Notes to the consolidated financial statements "5.4 Related party disclosures").
For their services as members of the Managing Board, Erich Sixt, Alexander Sixt and Konstantin Sixt receive remuneration, which in accordance with the resolution adopted by the Annual General Meeting on 3 June 2014, is not published individually. In the reporting period, other members of the Sixt family received remuneration amounting to EUR 0.2 million (H1 2017: EUR 0.2 million) for activities in the Group.
As at 30 June 2018, Erich Sixt Vermögensverwaltung GmbH, all shares of which are held directly and indirectly by the Sixt family, held 17,701,822 shares of the ordinary shares of Sixt SE (31 December 2017: 18,711,822 shares of the ordinary shares). On 6 June 2018, Erich Sixt Vermögensverwaltung GmbH, Pullach, sold 1,010,000 ordinary shares in Sixt SE at a share price of EUR 102.00 and now holds 58.3% of the ordinary shares and voting rights of the subscribed capital as at reporting date.
The notifications received by Sixt SE during the reporting period concerning transactions pursuant to article 19 of the European Market Abuse Directive were duly published and can be retrieved on the website of Sixt SE at ir.sixt.eu under the tab "Investor Relations – Corporate Governance – Directors' Dealings".
No events of special significance for the net assets, financial position and result of operations of the Sixt Group occurred after the reporting date as of 30 June 2018.
Responsibility statement in accordance with section 117 of the Wertpapierhandelsgesetz (WpHG – German Securities Trading Act) in conjunction with section 115 (2) no. 3 of the WpHG
To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the interim consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group, and the interim management report of the Group includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group for the remaining months of the financial year.
Pullach, 16 August 2018
Sixt SE
The Managing Board
Sixt SE Zugspitzstraße 1 82049 Pullach, Germany
Phone +49 (0) 89/ 7 44 44 - 5104 Fax +49 (0) 89/ 7 44 44 - 85104
Investor Relations website ir.sixt.eu Further sites sixt.com about.sixt.com
Published by Sixt SE Zugspitzstraße 1 82049 Pullach, Germany
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