Interim / Quarterly Report • Aug 21, 2013
Interim / Quarterly Report
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| 1. Summary2 |
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|---|---|
| 2. Interim Group Management Report2 |
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| 2.1 General Developments in the Group 2 |
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| 2.2 Vehicle Rental Business Unit4 | |
| 2.3 Leasing Business Unit6 | |
| 2.4 Sixt Shares 8 |
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| 2.5 Opportunities and Risks 9 |
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| 2.6 Report on Post-Balance Sheet Date Events 9 |
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| 2.7 Outlook9 | |
| 3. Results of Operations, Net Assets and Financial Position10 | |
| 3.1 Results of Operations10 | |
| 3.2 Net Assets 11 |
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| 3.3 Financial Position 12 |
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| 3.4 Liquidity Position12 | |
| 3.5 Investments 13 |
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| 4. Interim Consolidated Financial Statements as at 30 June 2013 14 |
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| 4.1 Consolidated Income Statement14 | |
| 4.2 Consolidated Balance Sheet15 | |
| 4.3 Consolidated Statement of Changes in Equity16 | |
| 4.4 Consolidated Cash Flow Statement17 | |
| 5. Other Information about the Group (Notes)18 | |
| 5.1 Basis of Accounting18 | |
| 5.2 Basis of Consolidation18 | |
| 5.3 Explanations of Selected Items of the Consolidated Income Statement19 | |
| 5.4 Explanations of Selected Items of the Consolidated Balance Sheet21 | |
| 5.5 Group Segment Reporting 23 |
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| 5.6 Explanations on the consolidated cash flow statement24 | |
| 5.7 Contingent Liabilities 25 |
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| 5.8 Related Party Disclosures25 | |
| 6. Responsibility Statement26 |
Sixt SE, Germany's largest car rental company and one of Europe's leading mobility service providers, recorded a good business performance for the first six months of 2013 in line with company expectations. Consolidated operating revenue (excluding revenue from the sale of used leasing vehicles) rose by 2.7% in the first half year to EUR 704.3 million. The continued dynamic growth in foreign operations more than compensated for the slackening demand at home, which was due to the general economic climate. Both rental as well as the leasing revenues climbed during the first six months. While rental revenue had weakened in the first quarter, the second quarter reversed that trend. Sixt Group's earnings position remained on a high level but below the previous year, as had been forecast. Earnings before taxes (EBT) for the first half year came to EUR 57.8 million after EUR 63.4 million in the same period last year. For the full year 2013, Sixt confirms its expectation of satisfactory earnings slightly below last year's level.
Operating revenue from rental and leasing activities (excluding revenue from the sale of used leasing vehicles) reached EUR 704.3 million in the first half of the year (H1 2012: EUR 686.0 million), which represents growth of 2.7%. As in the years before the proportion of foreign business in the consolidated operating revenue rose in keeping with strategy and climbed to 32.0% (H1 2012: 28.7%).
Rental revenue (excluding other revenue from rental business) increased 2.9% over the first six months of 2013 to EUR 465.9 million (H1 2012: EUR 452.7 million). The second quarter therefore showed more growth dynamics than the first three months, during which rental revenue had still been 1.8% short of last year's quarterly figures. All in all, economic conditions led to lower domestic demand, which was more than balanced out by the dynamic uptake outside of Germany. Other revenue from rental business amounted to EUR 43.4 million and therefore 3.6% below the figure for the same period last year (H1 2012: EUR 45.0 million).
The Leasing Business Unit recorded leasing revenue of EUR 195.0 million after six months. This was 3.6% more than for the corresponding period last year (H1 2012: EUR 188.3 million) given the higher number of lease agreements.
Revenue from the sale of used leasing vehicles, which to some extent is subject to stronger fluctuations because of reporting date effects and the respective fleet policy, came to EUR 73.7 million (H1 2012: EUR 86.7 million, -15,0%).
Sixt Group's six month revenue came to EUR 781.8 million, or 0.6% up on the same period last year (H1 2012: EUR 777.1 million).
Consolidated earnings before net finance costs and taxes (EBIT) came to EUR 74.3 million after EUR 88.5 million in the same period last year (-16.1%).
Net finance costs improved in the first six months to EUR -16.5 million (H1 2012: EUR -25.1 million), mainly as a result of an improved refinancing structure and Sixt Group's better refinancing conditions.
Consolidated earnings before taxes (EBT), the Group's key earnings indicator, reached EUR 57.8 million, which was 8.8% less than the same period last year at EUR 63.4 million. After the first three months this year-on-year drop had still amounted to 14.4%. Earnings were affected by a weak European market and the ongoing start-up costs for strategic growth initiatives. Both business units, Vehicle Rental and Leasing, contributed with positive earnings to the healthy half-year result.
After taxes and minority interests, the Sixt Group recorded a half-year profit of EUR 40.7 million (H1 2012: EUR 44.0 million; -7.3%). This is equivalent to undiluted earnings per share of EUR 0.85 (H1 2012: EUR 0.91).
Second quarter rental revenue (excluding other revenue from rental business) amounted to EUR 254.1 million, equivalent to 7.2% more than in the same quarter the year before (EUR 237.0 million). Other revenue from rental business was EUR 22.1 million (Q2 2012: EUR 23.2 million; -4.7%).
Second quarter leasing revenues amounted to EUR 99.1 million, a gain of 4.3% (Q2 2012: EUR 95.0 million).
Due to the positive development in the rental and leasing revenues, consolidated operating revenue from rental and leasing business rose in the second quarter 2013 by 5.7% and reached EUR 375.3 million (Q2 2012: EUR 355.2 million).
Total consolidated revenue increased 4.2% against the same quarter last year to EUR 412.7 million (EUR 396.3 million).
At EUR 35.5 million, second quarter EBT was merely EUR 1.9 million, or 4.9%, short of the corresponding figure last year (Q2 2012: EUR 37.4 million).
After minority interests Sixt reports a quarterly profit of EUR 25.3 million (Q2 2012: EUR 26.0 million, -2.7%).
With their presence in Germany, France, the UK, Spain, the Benelux countries, Monaco, Austria and Switzerland, Sixt subsidiaries cover more than 70% of the European rental market. In addition, the Group has been active since 2011 with its own stations in the USA and since 2013 moreover via franchise partners. In the other European countries and in other global regions, the Sixt brand is represented by a close-knit network of franchisees.
The operative highlights in the Vehicle Rental Business Unit for the period April to June 2013 were as follows:
Internationalisation - expanded USA franchise network: In the second quarter Sixt once again drove forward the internationalisation of operations. Following the start of a first franchise station in Tampa/Florida in March, the general basis was laid in the USA for the scheduled opening of three further franchise stations in Fort Pierce, Hollywood and Sunny Island during the course of this year. The plan foresees additional franchise stations in the USA to open in 2013. Building a franchise network alongside the company's own stations constitutes a key component of Sixt's expansion strategy on the world's biggest car rental market.
In addition, Sixt received the Seven Star Global Luxury Award, a new international award for luxury and lifestyle, in the category "best car rental company in the world". The jury for the award is made up of renowned representatives from the international luxury and tourism industries.
As on repeated previous occasions, in 2013 Sixt once more won the prestigious "Business Traveller Award" from the Business Traveller magazine. This award is assigned solely on behalf of readers' verdicts, that is business travellers, and therefore receives considerable attention in the travel industry.
As at 30 June 2013 the number of Sixt rental stations came to 2,006 worldwide (Company offices and franchisees). This is 36 more stations than at the year end 2012 (1,970), which in turn was mainly attributable to new stations opening in corporate countries such as Great Britain, but also with new openings by franchisees. The number of rental offices in Germany as of the end of June 2013 came to 486 as against the 494 recorded at the end of 2012.
The average number of vehicles in Germany and abroad (excluding franchisees) for the first six months of the year was 72,500, compared to an average of 76,800 for the full-year 2012. This drop of 5.6% reflects Sixt's cautious fleet policy in a weak European economic environment.
Rental revenue rose 2.9% during the first half of 2013 to EUR 465.9 million (H1 2012: EUR 452.7 million). In Germany, rental revenue of EUR 285.1 million was 4.2% below the same period last year (EUR 297.7 million). This development was the result of a weaker general economic business performance. Thanks to Sixt's ongoing expansion measures in Europe and the USA, rental revenue outside of Germany climbed by 16.6% and amounted to EUR 180.8 million (H1 2012: EUR 155.0 million).
Other revenue from rental business came to EUR 43.4 million, down 3.6% from last year's figure (H1 2012: EUR 45.0 million).
All in all, the Vehicle Rental Business Unit reports revenue growth of 2.3% for the first six months of 2013 to EUR 509.3 million (H1 2012: EUR 497.7 million).
The Business Unit's EBT for the first six months was EUR 50.9 million, or 5.4% lower than the previous year's figure at EUR 53.9 million. The start-up costs for expansion measures, such as station openings in the USA and Europe, as well as general cost increases, had a dampening effect. The Business Unit's revenue margin of 10.0% (H2 2012: 10.8%) therefore remains within the targeted minimum of 10%.
In the second quarter of 2013 rental revenue witnessed a 7.2% growth to EUR 254.1 million (Q2 2012: EUR 237.0 million). This was partly favoured by public holidays shifting between the first and second quarter. Including the other income from rental business, the Business Unit's total revenue for the quarter, at EUR 276.2 million, was 6.2% higher than the figure for the same period last year (EUR 260.2 million).
EBT for this year's second quarter was EUR 30.7 million, a 4.6% decline against last year's figure (EUR 32.3 million).
Sixt is one of the largest German vendor-neutral, non-bank full-service leasing companies, offering corporate and private customers a wide range of supplemental services, in addition to pure finance leasing, in order to reduce their mobility costs.
This year the leasing market in Germany and Europe is under the influence of a weak general economic environment. Leasing of moveable assets is characterized by a markedly cautious automobile business. According to the current readings from the capex indicator by the Munich-based ifo institute, which is based on business assessments from leasing companies and which the institute compiles together with the Bundesverband Deutscher Leasingunternehmen e.V. (BDL – German Association of Leasing Companies), the negative trend in capex, evident over the last three quarters of 2012, continued also in Q1 of 2013. However, as of the second quarter the trend picked up again, leaving experts to expect a "strong rise" in leasing investment in 2014.
The operative highlights in the Leasing Business Unit for the period April to June 2013 were as follows:
Start of Sixt Corporate CarSharing: In June 2013 Sixt started another innovative mobility service, entitled Sixt Corporate CarSharing. The programme enables employees to use company cars both for business as well as private trips outside working hours and over the weekend. This way, corporations can significantly optimize the utilization of their vehicle fleet, reduce expenses for their own fleet management, and offer their employees a flexible and reasonably priced form of mobility, for private usage as well. With Sixt Corporate CarSharing fleet costs can be cut by up to 30 percent in total. The new service allows corporations to arrange their vehicle fleet with leasing cars. To this end Sixt Leasing is collaborating with the brands Peugeot and Citroën. Sixt Leasing assists the corporations with consulting services regarding actual mobility requirements and optimal vehicle selection. An online-based tool that was developed in-house, and which can be integrated into the respective Intranet of a corporation, hooks the vehicles up to a centralized administration system, which facilitates the management of the fleet. This novel mobility model combines the specific strengths of leasing and carsharing and thereby generates substantial advantages for the corporations and their employees.
As at 30 June 2013 the Business Unit's total number of leases in and outside Germany (excluding franchisees) was 63,900 after 62,200 at the end of 2012, equalling an uptake of roughly 3%. Compared with the number of contracts as per/of the middle of 2012 (60,200) the increase amounts to approximately 6%.
In the first six months of the year the Business Unit generated revenue from leasing transactions in the amount of EUR 195.0 million after EUR 188.3 million over the same prior year period (+3.6%). This positive development was based on a higher contract volume. Growth was carried through both in Germany as well as abroad: domestic leasing revenue went up 1.6% to EUR 162.3 million (H1 2012: EUR 159.7 million), while Sixt revenues outside Germany grew by 14.4% to EUR 32.7 million (H1 2012: EUR 28.6 million).
The sale of used leasing vehicles in the first half of 2013 yielded revenue of EUR 73.7 million, compared to EUR 86.7 million for the same period last year (-15.0%). It must be borne in mind here that this form of revenue can be subject to substantial fluctuations at times, for example because of reporting day effects and Sixt's procurement policy.
Total revenue in the Leasing Business Unit for the first half of 2013 came to EUR 268.7 million (H1 2012: EUR 275.0 million; -2.3%).
The Business Unit reports half year earnings (EBT) of EUR 9.1 million, after EUR 9.6 million in the same quarter the year before (-6.2%). In the face of ongoing strong pressure on margins in new business transactions, the 4.6% revenue margin (H1 2012: 5.1%) is close to the long-term target of 5%.
Second quarter leasing revenues for 2013 amounted to EUR 99.1 million, a gain of 4.3% (Q2 2012: EUR 95.0 million). The sale of used leasing vehicles generated EUR 35.5 million (Q2 2012: EUR 38.8 million; -8.3%)
Total consolidated revenue for the Business Unit was EUR 134.6 million in the period from April to June 2013, after EUR 133.8 million in the same period last year (+0.6%).
The quarterly EBT improved significantly from EUR 4.1 million to EUR 5.1 million, equalling in increase of 22.9%.
Even though the sovereign debt crisis in Europe has not been solved and the economic climate remains tricky, most experts assume that the upward trend on the stock markets is set to continue. Shares are benefiting from a number of factors: the low valuation of many corporations, the immense liquidity in the market and the fact that the ratio of shares in many investors' portfolios is still small.
The German stock index (DAX - Deutsche Aktienindex) continued its upward trend in the second quarter of 2013 and reached its annual high on 22 May at 8,558 points. This was followed by a decline, not least triggered by rising capital market yields. The leading German index closed out the second quarter at 7,959 points, a gain of 2.1% against the end of the first quarter. The SDAX, where Sixt SE ordinary shares are quoted, made slight gains of 1.7% in the second quarter of this year.
Sixt shares, both ordinary and preference shares, developed positively in the second quarter and outperformed the SDAX reference index.
Following a sideways movement at the start of the quarter under review and an annual low at EUR 15.33 on 17 April, ordinary shares witnessed a steady climb that culminated in a high of EUR 18.10 on 19 June. In line with the entire market the share price saw a correction, so that at the end of the quarter (28 June) the share was quoted at EUR 17.20. All in all, ordinary shares gained 12.4% in value during the second quarter.
As per the end of the second quarter, preference shares registered a share price of EUR 15.37, equalling a gain of 16.8% against the closing price at the end of March. The high for the second quarter was on 19 June at EUR 16.14, and the low was on 9 April at EUR 13.13 (all figures refer to Xetra closing prices).
The opportunity and risk profile of the Sixt Group in the first six months of 2013 has not changed significantly as against the information provided in the Group Management Report in the 2012 Annual Report. The 2012 Annual Report 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.
The resolution taken by the Annual General Meeting on 20 June 2013, to transfer Sixt Aktiengesellschaft as the holding company of the Sixt Group into the legal entity of a European Association ("Societas Europaea" – SE), was entered into the commercial register and is to become effective as at 6 August 2013.
No events of special significance for the net assets, financial position and results of operations of the Sixt Group occurred after the reporting date of 30 June 2013.
The Managing Board affirms its previous expectations for the full year 2013: while it estimates that domestic demand for the Vehicle Rental Business Unit will remain weak due to economic conditions, the Board expects dynamic growth in the rest of Europe and the USA. All in all, the Managing Board expects that consolidated rental revenues for 2013 will stay stable, and at most contract slightly. In the Leasing Business Unit, Sixt expects marginally higher revenues.
Sixt will stay the course and stick to the principle of giving preference to adequate margins over volume growth ("Earnings before growth") as well as maintaining a demand-driven and cautious fleet policy. All strategic growth initiatives, such as expansion in the USA, will be consistently driven forward.
Subject to the general economic outlook in Europe not worsening further than projected, Sixt expects consolidated EBT for 2013 to be slightly lower than last year but expects once again to see a good earnings position in the prevailing market conditions.
The long-term objectives of Sixt are for both Business Units to grow above the market average and to generate a sustainable pre-tax return on revenue of at least 10% in the Vehicle Rental business unit and of 5 % in the Leasing business unit (each in relation to the business unit's operating revenue).
At EUR 20.6 million, other operating income for the first half of the year 2013 was below the prior-year period (EUR 21.8 million).
Fleet expenses and cost of lease assets declined by 0.4% to EUR 311.3 million in the first six months (H1 2012: EUR 312.7 million). Increases were registered above all for such current expenses as repairs and transportation, while the costs for sold lease assets declined in line with sales proceeds.
At EUR 86.5 million the personnel expenses for the period January to June 2013 climbed 3.8% on the level of the previous year (EUR 83.4 million).
At EUR 152.2 million, depreciation and amortisation for the first half of the year was 1.9% less than the figure for the same period of the previous year (EUR 155.1 million). This is mainly attributable to lower depreciation of rental vehicles, which went 11.9% down to EUR 73.3 million (H1 2012: EUR 83.2 million). This reduction reflects the lower average fleet compared with the corresponding previous year's period. Depreciation of lease assets developed in the other direction as it increased against the previous year's corresponding quarter by 9.3% to EUR 73.3 million (H1 2012: EUR 67.0 million).
Other operating expenses rose substantially by 11.8% to EUR 178.1 million (H1 2012: EUR 159.2 million). This increase is mainly due to higher leasing expenses from the refinancing of the fleet ("operate leases") and the expenses incurred in connection with outsourced activities.
For the first six months Sixt Group records earnings before net finance costs and taxes (EBIT) of EUR 74.3 million (H1 2012: EUR 88.5 million). EBIT attributable to the second quarter was EUR 42.3 million (Q2 2012: EUR 49.9 million; -15.2%).
The net finance costs for the first six months improved in comparison to the prior-year period, to EUR -16.5 million (H1 2012: EUR -25.1 million), which was the result of lower interest payments on financial liabilities that serve to refinance the capitalised rental and leasing fleet. The net finance costs include a negative result from interest rate hedging transactions in the amount of EUR -1.1 million (H1 2012: EUR +0.3 million).
As a result, the Group reported EBT of EUR 57.8 million for the first six months of the year (H1 2012: EUR 63.4 million; -8.8%) The second quarter EBT came to EUR 35.5 million (Q2 2012: EUR 37.4 million; -4.9%).
Group profit after taxes and before minority interests for the period amounted to EUR 40.5 million (H1 2012: EUR 43.8 million; -7.6%). As in the prior-year period, the portion of consolidated profit or loss attributable to minority interests was not material. For Q2 on a stand-alone basis, the Group reported a profit of EUR 25.1 million (Q2 2012: EUR 25.9 million; -3.5%).
On the basis of 48.06 million outstanding shares (weighted average for the first six months for ordinary and preference shares; previous year: 48.27 million shares outstanding), earnings per share (basic) for the first six months amounted to EUR 0.85, after EUR 0.91 in the prior-year period. There were no financial instruments to be taken into account that would cause a dilution of profits.
As at the reporting date on 30 June 2013, the Group's total assets were EUR 2.43 billion. This was EUR 257.9 million higher than at 31 December 2012 (EUR 2.17 billion).
Within the non-current assets the lease assets continue to be the most significant item. As at 30 June 2013 they stood at EUR 768.0 million, which was EUR 27.6 million higher than the figure reported at the end of 2012 (EUR 740.4 million). All in all, non-current assets were up by EUR 32.9 million to EUR 881.8 million. Current assets increased per reporting date by EUR 225.0 million and amounted to EUR 1.55 billion at the end of June. This was essentially due to a higher total reported for rental vehicles (by EUR +189.9 million to EUR 1.12 billion as against the end of 2012). As at reporting date the Group's cash and cash equivalents came to EUR 36.0 million (31 December 2012: EUR 67.3 million).
Taking into consideration the dividend payments for the previous fiscal year made in June, Sixt Group's equity was EUR 621.7 million as at reporting date, down by EUR 11.1 million from the end of 2012. The equity ratio amounted to 25.6% (31 December 2012: 29.1%) and therefore remained on a level which is well above the average for the rental and leasing industry.
Non-current liabilities and provisions as at 30 June 2013 totalled EUR 825.5 million, a EUR 9.8 million reduction from 31 December 2012 (EUR 835.3 million). Among the major items were financial liabilities amounting to EUR 771.7 million (31 December 2012: EUR 790.1 million). These include the 2010/2016 and the 2012/2018 bond issue (nominal value each EUR 250 million), as well as borrower's note loans and bank liabilities with residual terms of more than one year.
Current liabilities and provisions as at 30 June 2013 totalled EUR 984.4 million, and were thus EUR 278.8 million above the figure from the end of 2012 (EUR 705.6 million). This is on the one hand due to the increase in trade payables contingent on the reporting date. On the other hand, financial liabilities of EUR 372.6 million were significantly higher than at the end of the year 2012 because of a higher stock in fleet (year end 2012: EUR 186.8 million).
As at the end of the first six months of 2013, the Sixt Group reported cash flows before changes in working capital of EUR 189.1 million (H1 2012: EUR 202.4 million). Including working capital results in a net cash outflow from operating activities for the first six months amounting to EUR 38.0 million, which is primarily due to the seasonal increase of the capitalized rental fleet (H1 2012: cash inflow of EUR 187.3 million).
Net cash flows used in investing activities led to a cash outflow of EUR 112.5 million (H1 2012: cash outflow of EUR 204.8 million), primarily as a result of investments in lease assets.
Because new current financial liabilities were taken out to finance the extended rental fleet, financing activities led to a cash inflow of EUR 118.9 million (H1 2012: cash inflow of EUR 42.6 million).
After minor changes relating to exchange rates, total cash flows resulted in a year-on-year reduction in cash and cash equivalents as at 30 June 2013, down by EUR 31.3 million against the year end 2012 (H1 2012: increase of EUR 24.8 million).
In the period from January to June 2013 Sixt added around 82,900 vehicles to the rental and leasing fleet (H1 2012: 85,800 vehicles) with a total value of EUR 2.04 billion (H1 2012: EUR 2.04 billion). In keeping with the expectation of a restrained demand in the rental segment this was fewer vehicles than in the corresponding period the year before. Sixt continues to expect the investment volume for the full-year 2013 to be on a par with the previous year (2012: EUR 3.69 billion).
| EUR thou. | H1 2013 |
H1 2012 |
Q2 2013 |
Q2 2012 |
|---|---|---|---|---|
| Revenue | 781,831 | 777,079 | 412,719 | 396,326 |
| Other operating income | 20,555 | 21,772 | 9,152 | 9,553 |
| Fleet expenses and cost of lease assets | 311,311 | 312,689 | 159,704 | 155,452 |
| Personnel expenses | 86,547 | 83,352 | 45,192 | 42,329 |
| Depreciation and amortisation expense1) | 152,187 | 155,071 | 81,826 | 73,912 |
| Other operating expenses | 178,088 | 159,238 | 92,881 | 84,333 |
| Profit from operating activities (EBIT) | 74,253 | 88,501 | 42,268 | 49,853 |
| Net finance costs (net interest expense and net income from financial assets) |
-16,433 | -25,111 | -6,748 | -12,504 |
| Profit before taxes (EBT) | 57,820 | 63,390 | 35,520 | 37,349 |
| Income tax expenses | 17,339 | 19,556 | 10,469 | 11,395 |
| Consolidated profit for the period | 40,481 | 43,834 | 25,051 | 25,954 |
| of which attributable to minority interests | -267 | -126 | -281 | -89 |
| of which attributable to shareholders of Sixt SE | 40,748 | 43,960 | 25,332 | 26,043 |
| Earnings per shares - basic (EUR) 2) | 0.85 | 0.91 | 0.53 | 0.54 |
| Average number of shares 2) | ||||
| (basic/weighted) | 48,058,286 | 48,269,241 | ||
| 1) of which depreciation of rental vehicles (EUR thou.) H1 2013: 73,293 (H1 2012: 83,185), Q2 2013: 41,960 (Q2 2012: 38,463) of which depreciation of lease assets (EUR thou.) H1 2013: 73,259 (H1 2012: 67,048), Q2 2013: 36,922 (Q2 2012: 32,932) 2) Number of ordinary and preference shares, weighted average in the period under review |
||||
| Statement of Comprehensive Income EUR thou. |
H1 2013 |
H1 2012 |
| Consolidated profit for the period | 40,481 | 43,834 |
|---|---|---|
| Recognised in other comprehensive income | ||
| Currency translation gains/losses | -2,814 | 2,122 |
| Impairment losses/reversals on available-for-sale assets | - | 505 |
| related deferred taxes | - | -126 |
| Total comprehensive income | 37,667 | 46,335 |
| of which attributable to minority interests | -267 | -126 |
| of which attributable to shareholders of Sixt SE | 37,934 | 46,461 |
| Assets | Interim Report | Consolidated |
|---|---|---|
| financial statements | ||
| EUR thou. | 30 June 2013 | 31 Dec. 2012 |
| Current assets | ||
| Cash and bank balances | 36,014 | 67,280 |
| Income tax receivables | 4,541 | 1,884 |
| Current other receivables and assets | 109,122 | 50,217 |
| Trade receivables | 235,552 | 244,857 |
| Inventories | 48,453 | 34,406 |
| Rental vehicles | 1,116,109 | 926,176 |
| Total current assets | 1,549,791 | 1,324,820 |
| Non-current assets | ||
| Deferred tax assets | 13,471 | 13,585 |
| Non-current other receivables and assets | 6,267 | 6,861 |
| Non-current financial assets | 2,677 | 2,421 |
| Lease assets | 768,016 | 740,373 |
| Investment property | 3,060 | 3,078 |
| Property and equipment | 54,478 | 51,131 |
| Intangible assets | 15,434 | 13,001 |
| Goodwill | 18,442 | 18,442 |
| Total non-current assets | 881,845 | 848,892 |
| Total assets | 2,431,636 | 2,173,712 |
| Equity and liabilities | Interim Report | Consolidated |
| financial statements | ||
| EUR thou. | 30 June 2013 | 31 Dec. 2012 |
| Current liabilities and provisions | ||
| Current other liabilities | 66,129 | 68,660 |
| Current finance lease liabilities | 9,908 | 47,942 |
| Trade payables | 426,779 | 294,826 |
| Current financial liabilities | 372,634 | 186,833 |
| Income tax provisions | 47,354 | 51,232 |
| Current other provisions | 61,643 | 56,151 |
| Total current liabilities and | 984,447 | 705,644 |
| provisions | ||
| Non-current liabilities and provisions | ||
| Deferred tax liabilities | 13,218 | 13,608 |
| Non-current other liabilities | 5,899 | 7,542 |
| Non-current finance lease liabilities | 34,013 | 23,070 |
| Non-current financial liabilities | 771,682 | 790,114 |
| Non-current other provisions | 667 | 925 |
| Total non-current liabilities and | 825,479 | 835,259 |
| provisions | ||
| Equity | ||
| Subscribed capital | 123,029 | 123,029 |
| Capital reserves | 207,622 | 206,702 |
| Other reserves (including retained earnings) | 291,023 | 303,055 |
| Minority interests | 36 | 23 |
| Total equity | 621,710 | 632,809 |
| Total equity and liabilities | 2,431,636 | 2,173,712 |
| EUR thou. | Subscribed Capital capital reserves |
Other Treasury equity1) |
Equity shares attributable to shareholders of Sixt SE |
Minority interests |
Total equity |
|---|---|---|---|---|---|
| as at 1 January 2013 Consolidated |
123,029 206,702 | 303,055 | - 632,786 |
23 | 632,809 |
| profit H1 2013 | 40,748 | 40,748 | -267 | 40,481 | |
| Dividend payment for 2012 |
-48,397 | -48,397 | -48,397 | ||
| Currency translation differences |
-2,959 | -2,959 | -2,959 | ||
| Other changes |
920 | -1,424 | -504 | 280 | -224 |
| as at 30 June 2013 |
123,029 207,622 | 291,023 | - 621,674 |
36 | 621,710 |
| EUR thou. | Subscribed capital |
Capital reserves |
Other equity1) |
Treasury shares |
Equity attributable to shareholders of Sixt SE |
Minority interests |
Total equity |
|---|---|---|---|---|---|---|---|
| as at 1 January 2012 |
129,154 | 200,425 | 292,364 | -26,010 | 595,933 | 151 | 596,084 |
| Consolidated profit H1 2012 |
43,960 | 43,960 | -126 | 43,834 | |||
| Dividend payment for 2011 |
-36,382 | -36,382 | -36,382 | ||||
| Currency translation differences |
2,122 | 2,122 | 2,122 | ||||
| Other changes |
724 | 317 | -8,555 | -7,514 | 206 | -7,308 | |
| as at 30 June 2012 |
129,154 | 201,149 | 302,381 | -34,565 | 598,119 | 231 | 598,350 |
1) Including retained earnings
| EUR thou. | H1 2013 |
H1 2012 |
|---|---|---|
| Operating activities | ||
| Consolidated profit for the period | 40,481 | 43,834 |
| Amortisation of intangible assets | 1,595 | 1,496 |
| Depreciation of property and equipment and investment property | 4,040 | 3,342 |
| Depreciation of lease assets | 73,259 | 67,048 |
| Depreciation of rental vehicles | 73,293 | 83,185 |
| Result on disposal of intangible assets, property and equipment | -39 | -127 |
| Other non-cash income and expense | -3,491 | 3,616 |
| Cash Flow | 189,138 | 202,394 |
| Change in non-current other receivables and assets | 594 | -610 |
| Change in deferred tax assets | 114 | -974 |
| Change in rental vehicles, net | -263,226 | -41,763 |
| Change in inventories | -14,047 | -1,814 |
| Change in trade receivables | 9,305 | -37,740 |
| Change in current other receivables and assets | -58,905 | -55,232 |
| Change in income tax receivables | -2,657 | 153 |
| Change in non-current other provisions | -258 | -142 |
| Change in non-current other liabilities | 9,300 | 5,260 |
| Change in deferred tax liabilities | -390 | -714 |
| Change in current other provisions | 5,492 | 2,219 |
| Change in income tax provisions | -3,878 | 957 |
| Change in trade payables | 131,953 | 64,941 |
| Change in current other liabilities | -40,566 | 50,361 |
| Net cash flows used in/from operating activities | -38,031 | 187,296 |
| Investing activities | ||
| Proceeds from disposal of intangible assets, property and equipment, and investment property |
791 | 5,412 |
| Proceeds from disposal of lease assets | 72,407 | 86,890 |
| Proceeds from disposal of financial investments | 9 | - |
| Change in current financial assets | - | -102,820 |
| Payments to acquire intangible assets, property and equipment | -12,149 | -14,413 |
| Payments to acquire lease assets | -173,307 | -179,863 |
| Payments to acquire financial investments | -250 | - |
| Change in financial investments attributable to changes in reporting entity structure | -15 | - |
| Net cash flows used in investing activities | -112,514 | -204,794 |
| Financing activities | ||
| Change in treasury shares | - | -8,555 |
| Dividend payment | -48,397 | -36,382 |
| Change in current financial liabilities | 185,801 | -304,943 |
| Change in non-current financial liabilities | -18,432 | 392,458 |
| Net cash flows from financing activities | 118,972 | 42,578 |
| Net change in cash and cash equivalents | -31,573 | 25,080 |
| Effect of exchange rate changes on cash and cash equivalents | 307 | -248 |
| Cash and cash equivalents at 1 January | 67,280 | 31,374 |
| Cash and cash equivalents at 30 June | 36,014 | 56,206 |
The consolidated financial statements of Sixt SE as at 31 December 2012 were prepared in accordance with International Financial Reporting Standards (IFRSs), as adopted by the EU and effective at the closing date.
The same accounting policies are principally applied in the interim consolidated financial statements as at 30 June 2013, which were prepared on the basis of International Accounting Standard (IAS) 34 (Interim Financial Reporting), as in the 2012 consolidated financial statements. 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. 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 2012 Annual Report. The results presented in the interim financial reports are not necessarily indicative of the results of future reporting periods or of the full financial year. The interim consolidated financial statements for the first half were prepared in Euros.
The accompanying interim consolidated financial statements as at 30 June 2013 have not been audited or reviewed by the Company's auditors, Deloitte & Touche GmbH, Wirtschaftsprüfungsgesellschaft.
Sixt SE, domiciled in Zugspitzstrasse 1, 82049 Pullach, Germany, is entered in section B of the commercial register at the Munich Local Court, under the number 206738.
SXT Beteiligungs GmbH & Co. KG, Pullach, SXT Telesales GmbH, Berlin, and MD Digital Mobility GmbH & Co. KG, Munich were consolidated for the first time in the fiscal year. These companies were established by the Sixt Group. Their initial consolidation had no noteworthy effects on the Group's net assets, financial position and results of operations.
Revenue is broken down as follows:
| EUR million | H1 2013 |
H1 2012 |
Change % |
Q2 2013 |
Q2 2012 |
Change % |
|---|---|---|---|---|---|---|
| Operating revenue | 704.3 | 686.0 | 2.7 | 375.3 | 355.2 | 5.7 |
| Rental revenue | 465.9 | 452.7 | 2.9 | 254.1 | 237.0 | 7.2 |
| Other revenue from rental business |
43.4 | 45.0 | -3.6 | 22.1 | 23.2 | -4.7 |
| Leasing revenue | 195.0 | 188.3 | 3.6 | 99.1 | 95.0 | 4.3 |
| Leasing sales revenue | 73.7 | 86.7 | -15.0 | 35.5 | 38.8 | -8.3 |
| Other revenue | 3.8 | 4.4 | -11.7 | 1.9 | 2.3 | -15.0 |
| Consolidated revenue | 781.8 | 777.1 | 0.6 | 412.7 | 396.3 | 4.2 |
Fleet expenses and cost of lease assets are broken down as follows:
| EUR million | H1 2013 |
H1 2012 |
Change % |
|---|---|---|---|
| Repairs, maintenance, reconditioning | 96.4 | 89.1 | 8.1 |
| Fuel | 57.4 | 56.8 | 1.1 |
| Insurance | 32.4 | 32.3 | 0.4 |
| Transportation | 17.9 | 16.8 | 6.6 |
| Other, including selling expenses | 107.2 | 117.7 | -8.9 |
| Group total | 311.3 | 312.7 | -0.4 |
Expenses of EUR 147.9 million (H1 2012: EUR 139.2 million) are attributable to the Vehicle Rental Business Unit, and EUR 163.4 million (H1 2012: EUR 173.5 million) to the Leasing Business Unit.
Other operating expenses are broken down as follows:
| EUR million | H1 2013 |
H1 2012 |
Change % |
|---|---|---|---|
| Leasing expenses | 31.1 | 25.5 | 22.2 |
| Commissions | 40.2 | 38.5 | 4.2 |
| Expenses for buildings | 23.4 | 23.1 | 1.1 |
| Other selling and marketing expenses | 20.3 | 19.9 | 2.3 |
| Expenses from write-downs of receivables | 4.8 | 5.0 | -4.5 |
| Miscellaneous expenses | 58.3 | 47.2 | 23.5 |
| Group total | 178.1 | 159.2 | 11.8 |
Net finance costs of EUR -16.5 million (H1 2012: EUR -25.1 million) contained net interest expense of EUR -16.8 million (H1 2012: EUR -27.3 million). This included a net loss on interest rate hedging transactions amounting to EUR -1.1 million (H1 2012: net gain of EUR 0.3 million).
The income tax expense is composed of current income taxes in the amount of EUR 17.7 million (H1 2012: EUR 21.3 million) and deferred taxes of EUR -0.4 million (H1 2012: EUR -1.7 million). Based on its profit before taxes (EBT), the Sixt Group's tax rate was 30% in the period under review (H1 2012: 31%).
Earnings per share are as follows:
| Basic earnings per share | H1 2013 |
H1 2012 |
|
|---|---|---|---|
| Consolidated profit/loss for the period after minority interests |
EUR thou. |
40,748 | 43,960 |
| Profit/loss attributable to ordinary shares | EUR thou. |
26,190 | 28,272 |
| Profit/loss attributable to preference shares | EUR thou. |
14,558 | 15,688 |
| Weighted average number of ordinary shares | 31,146,832 | 31,315,100 | |
| Weighted average number of preference shares | 16,911,454 | 16,954,141 | |
| Earnings per ordinary share | in EUR |
0.84 | 0.90 |
| Earnings per preference share | in EUR |
0.86 | 0.93 |
The profit/loss attributable to preference shares includes 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. As in the previous year, there were no financial instruments as at the reporting date that could dilute the profit attributable to Sixt shares.
Current other receivables and assets falling due within one year can be broken down as follows:
| EUR million | 30 June 2013 | 31 Dec. 2012 |
|---|---|---|
| Current finance lease receivables | 4.0 | 4.3 |
| Receivables from affiliated companies and | ||
| from other investees | 5.6 | 5.9 |
| Recoverable taxes | 70.7 | 12.6 |
| Insurance claims | 1.2 | 1.9 |
| Prepaid expenses | 19.8 | 16.6 |
| Other | 12.4 | 10.8 |
| Group total | 113.7 | 52.1 |
The recoverable taxes item includes income tax receivables of EUR 4.5 million (31 December 2012: EUR 1.9 million).
The rental vehicles item increased for seasonal reasons by EUR 189.9 million as against 31 December 2012, up from EUR 926.2 million to EUR 1,116.1 million.
Non-current other receivables and assets mainly include the non-current portion of finance lease receivables amounting to EUR 3.0 million (31 December 2012: EUR 4.0 million), as well as other receivables, such as advance down payments, in the amount of EUR 3.2 million (31 December 2012: EUR 2.8 million).
Lease assets increased by EUR 27.6 million to EUR 768.0 million as at the reporting date (31 December 2012: EUR 740.4 million). As was the case already in 2012, this growth is primarily the result of a resurgent volume of contracts.
Current financial liabilities falling due within one year are broken down as follows:
| EUR million | 30 June 2013 | 31 Dec. 2012 |
|---|---|---|
| Borrower's note loans | 206.2 | 130.0 |
| Liabilities to banks | 145.3 | 39.1 |
| Other liabilities | 21.1 | 17.7 |
| Group total | 372.6 | 186.8 |
EUR 130.0 million of the reported borrower's note loans is due for repayment in August 2013 and EUR 76.2 million in May 2014.
As in the case of year-end 2012, current other provisions primarily comprise provisions for taxes, legal costs and rental operations, and employee-related provisions.
The non-current financial liabilities have residual terms of more than one year and are broken down as follows:
| EUR million | Residual term of 1 – 5 years |
Residual term of more than 5 years |
||
|---|---|---|---|---|
| 30 June 2013 | 31 Dec. 2012 | 30 June 2013 | 31 Dec. 2012 | |
| Borrower's note loans | 197.5 | 235.8 | 53.3 | 35.9 |
| Bonds | 496.1 | 244.3 | 1.6 | 250.5 |
| Liabilities to banks | ||||
| 23.0 | 23.2 | 0.2 | 0.4 | |
| Group total | 716.6 | 503.3 | 55.1 | 286.8 |
Borrower's note loans were raised in several tranches, with nominal terms of between three and seven years. In June 2013 borrower's notes loans with nominal terms of four and six years and a total volume of EUR 56.5 million were issued. The bonds relate mainly to the 2010/2016 bond issue from 2010 and the 2012/2018 bond issue from 2012 (each with a nominal value EUR 250 million).
The share capital of Sixt SE as at 30 June 2013 amounts to EUR 123,029,212 (31 December 2012: EUR 123,029,212).
The share capital is composed of:
| No-par value shares |
Nominal value in EUR |
|
|---|---|---|
| Ordinary shares | 31,146,832 | 79,735,890 |
| Non-voting preference shares | 16,911,454 | 43,293,322 |
| Balance at 30 June 2013 | 48,058,286 | 123,029,212 |
By resolution of the Annual General Meeting of 6 June 2012 the Managing Board, was authorised, as specified in the proposed resolution, to acquire 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 authorization in the period up to 5 June 2017. The authorization may be exercised wholly or partially for any purpose permitted by law. Acquisitions for the purpose of trading in treasury shares are excluded. This authorization has not yet been exercised as of reporting date.
The Sixt Group is active in the two main business areas of Vehicle Rental and Leasing. When combined, the revenue from these activities - excluding vehicle sales revenue - is also described as "operating revenue". 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. The segment information for the first six months of 2013 (compared with the first six months of 2012) is as follows:
| Business Unit | Rental | Leasing | Other | Reconciliation | Group | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| EUR million | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 |
| External revenue | 509.3 | 497.7 | 268.7 | 275.0 | 3.8 | 4.4 | - | - | 781.8 | 777.1 |
| Internal revenue | 2.4 | 4.0 | 5.5 | 5.6 | 9.1 | 6.8 | -17.0 | -16.4 | - | - |
| Total revenue | 511.7 | 501.7 | 274.2 | 280.6 | 12.9 | 11.2 | -17.0 | -16.4 | 781.8 | 777.1 |
| Depreciation / amortisation |
78.5 | 87.5 | 73.3 | 67.1 | 0.4 | 0.5 | - | - | 152.2 | 155.1 |
| Other non-cash expense |
9.2 | 6.5 | - | 1.5 | 1.9 | - | - | - | 11.1 | 8.0 |
| EBIT1) | 55.4 | 71.5 | 21.1 | 21.6 | -2.2 | -4.6 | - | - | 74.3 | 88.5 |
| Interest income | 2.9 | 0.8 | 0.8 | 0.6 | 17.3 | 27.2 | -18.0 | -27.5 | 3.0 | 1.1 |
| Interest expense | -7.4 | -18.4 | -12.8 | -12.6 | -17.7 | -24.9 | 18.0 | 27.5 | -19.9 | -28.4 |
| Other net finance costs2) |
- | - | - | - | 0.4 | 2.2 | - | - | 0.4 | 2.2 |
| EBT3) | 50.9 | 53.9 | 9.1 | 9.6 | -2.2 | -0.1 | - | - | 57.8 | 63.4 |
| Investments4) | 12.1 | 9.3 | 173.4 | 180.0 | 0.2 | 5.0 | - | 185.7 | 194.3 | |
| Assets | 1,575.9 | 1,631.2 | 879.8 | 796.7 | 1,467.7 | 1,685.0 | -1,509.8 | -1,589.3 | 2,413.6 | 2,523.6 |
| Liabilities | 918.6 | 1,394.3 | 830.1 | 723.7 | 980.6 | 1,231.9 | -979.9 | -1,469.3 | 1,749.4 | 1,880.6 |
| Region | Germany | Abroad | Reconciliation | Group | ||||
|---|---|---|---|---|---|---|---|---|
| EUR million | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 |
| Total revenue | 550.2 | 574.8 | 236.4 | 207.8 | -4.8 | -5.5 | 781.8 | 777.1 |
| Investments4) | 147.9 | 159.3 | 37.8 | 35.0 | - | - | 185.7 | 194.3 |
| Assets | 2,021.6 | 2,168.7 | 965.4 | 820.9 | -573.4 | -466.0 | 2,413.6 | 2,523.6 |
1) Corresponds to profit from operating activities (EBIT)
2) Including investment income or expense
3) Corresponds to profit before taxes (EBT)
4) Excluding investments in rental vehicles and current financial assets
The cash flow statement shows the change in cash and cash equivalents in the financial year to date. In accordance with IAS 7 ("Cash Flow Statements"), a distinction is made between cash flows from each of operating, investing and financing activities. Cash and cash equivalents correspond to the relevant item in the balance sheet. In accordance with IAS 7.31 and IAS 7.35, net cash outflows from/used in operating activities include the following inflows and outflows of cash:
| EUR million | H1 2013 |
H1 2012 |
|---|---|---|
| Interest received | 3.4 | 1.6 |
| Interest paid | 23.5 | 18.7 |
| Dividends received | 1.0 | 3.4 |
| Income taxes paid | 23.2 | 22.7 |
There were no material changes in contingent liabilities resulting from guarantees or similar obligations in the period under review as against the 2012 consolidated financial statements.
The Sixt Group has receivables from and liabilities to various unconsolidated Group companies for the purposes of intercompany settlements and financing. The resulting net figures are reported under the items for "Other current receivables and assets" and "Other current liabilities". The transactions are conducted on arm's length terms. The following provides an overview of significant account balances arising from such relationships:
There were substantial receivables from Sixt SARL, Monaco (EUR 1.9 million, 31 December 2012: EUR 0.8 million), SIXT S.à.r.l., Luxemburg (EUR 0.9 million, 31 December 2012: EUR 0.8 million), Sixt Autoland GmbH (EUR 0.5 million, 31 December 2012: EUR 0 million), Sixt College GmbH (EUR 0.1 million, 31 December 2012: EUR 0 million) and Sixt International Holding GmbH (EUR 0.1 million, 31 December 2012: EUR 0.1 million). Substantial liabilities were recognised in respect of Sixt Nord SARL (EUR 0.5 million, 31 December 2012: EUR 0.6 million), Sixt Aéroport SARL (EUR 0.4 million, 31 December 2012: EUR 0.4 million), Sixt Sud SARL (EUR 0.3 million, 31 December 2012: EUR 0.4 million), UNITED rentalsystem SARL (EUR 0.3 million, 31 December 2012: EUR 0.3 million), Sixt Executive France SARL (EUR 0.3 million, 31 December 2012: EUR 0.5 million), Sixti SARL (EUR 0.3 million, 31 December 2012: EUR 0.4 million), Sixt Franchise USA LLC (EUR 0.3 million, 31 December 2012: receivables EUR 0.2 million), Sixt Franchise SARL (EUR 0.2 million, 31 December 2012: EUR 0.2 million), e-Sixt Verwaltungs GmbH (EUR 0.1 million, 31 December 2012: EUR 0.1 million), Sixt Immobilien Beteiligungen GmbH (EUR 0.1 million, 31 December 2012: EUR 0.1 million) and Sixt Executive GmbH (EUR 0.1 million, 31 December 2012: EUR 0.1 million). The volume of transactions with these affiliated companies is insignificant. They are conducted at arm's length and result from the normal course of business.
The Group rents two properties belonging to the Sixt family for its operations. Rental expenses were insignificant, as in the same period of the prior year. For his services as Chairman of the Managing Board, Erich Sixt receives remuneration which, in accordance with the resolution adopted by the Annual General Meeting on 17 June 2010, is not published individually. In the reporting period, other members of the Sixt family also received remuneration amounting to EUR 0.3 million (H1 2012: EUR 0.3 million) for their activities in the Group.
The Company received no communications during the period under review according to section 15a of the German Securities Trading Act (WpHG) from persons named in that Act.
As at 30 June 2013, Erich Sixt Vermögensverwaltung GmbH, all shares of which are held by the Sixt family, held an unchanged 18,711,822 shares of the ordinary shares of Sixt SE.
Responsibility statement in accordance with section 37y of the Wertpapierhandelsgesetz (WpHG - German Securities Trading Act) in conjunction with section 37w (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, 21 August 2013
Sixt SE The Managing Board
Sixt SE Zugspitzstrasse 1 82049 Pullach, Germany
[email protected] Phone +49 (0)89/ 7 44 44 - 5104 Fax +49 (0)89/ 7 44 44 - 85104 www.sixt.com http://se.sixt.de/en
Published by: Sixt SE Zugspitzstrasse 1 82049 Pullach, Germany
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