Quarterly Report • May 27, 2013
Quarterly Report
Open in ViewerOpens in native device viewer
| 1. Summary 2 | |
|---|---|
| 2. Interim Group Management Report 2 | |
| 2.1 General Developments in the Group 2 | |
| 2.2 Vehicle Rental Business Unit 4 | |
| 2.3 Leasing Business Unit 6 | |
| 2.4 Sixt shares performance 7 | |
| 2.5 Opportunities and Risks 8 | |
| 2.6 Report on Post-Balance Sheet Date Events 8 | |
| 2.7 Outlook 8 | |
| 3. Results of Operations, Net Assets and Financial Position 9 | |
| 3.1 Results of Operations 9 | |
| 3.2 Net Assets 10 | |
| 3.3 Financial Position 10 | |
| 3.4 Liquidity Position 11 | |
| 3.5 Investments 11 | |
| 4. Interim Consolidated Financial Statements as at 31 March 2013 12 | |
| 4.1 Consolidated Income Statement 12 | |
| 4.2 Consolidated Balance Sheet 13 | |
| 4.3 Consolidated Statement of Changes in Equity 14 | |
| 4.4 Consolidated Cash Flow Statement 15 | |
| 5. Other Information about the Group (Notes) 5.1 Basis of Accounting 16 |
16 |
| 5.2 Basis of Consolidation 16 | |
| 5.3 Explanations of Selected Items of the Consolidated Income Statement 17 | |
| 5.4 Explanations of Selected Items of the Consolidated Balance Sheet 19 | |
| 5.5 Group Segment Reporting 22 5.6 Explanations on the Consolidated Cash Flow Statement |
23 |
| 5.7 Contingent Liabilities 23 | |
| 5.8 Related Party Disclosures 23 | |
Sixt Aktiengesellschaft, Germany's largest car rental company and one of Europe's leading mobility service providers, recorded a good business performance in the first three months of fiscal year 2013, despite an increasingly difficult economic environment. Revenue and earnings remained on a high level, although they fell slightly short of last year's figures due to lower demand given the economic climate. Foreign business continued to grow dynamically by double-digit percentage points. Overall, Sixt recorded consolidated revenue of EUR 369.1 million for the first quarter of 2013, a decline of 3.1% from the same quarter the year before. At EUR 329.0 million the consolidated operating revenue, which is the more relevant figure, was almost on a par with last year (-0.6%). Earnings before taxes (EBT) went down 14.4% to EUR 22.3 million. For the full fiscal year 2013 Sixt continues to foresee EBT marginally down on last year, but still expects to close out with another satisfactory earnings position.
Total consolidated revenue for the Sixt Group was EUR 369.1 million in the first three months of 2013. This 3.1% drop against the first quarter of 2012 (EUR 380.8 million) was mainly attributable to lower revenue from the sale of used leasing vehicles.
Quarter-on-quarter rental revenue (excluding other revenue from rental business) decreased slightly by 1.8% to EUR 211.8 million (Q1 2012: EUR 215.7 million). Growth was driven predominantly by foreign operations, which climbed 15.3% to EUR 77.1 million (Q1 2012: EUR 66.8 million). Other revenue from rental business was EUR 21.3 million and therefore almost on a par with the prior-year figure (Q1 2012: EUR 21.8 million; -2.6%). Leasing revenue recorded in the Leasing Business Unit reached EUR 95.9 million during the first three months of the current year, which equals a gain of 2.8% on the figure from the same period last year (EUR 93.3 million). This meant that the operative upward trend continued on the basis of a higher portfolio of leasing contracts.
Consolidated operating revenue from the rental and leasing business (excluding revenue from the sale of used leasing vehicles) reached EUR 329.0 million and was thus almost on a par with the previous year's figure of EUR 330.8 million (-0.6%). Outside Germany, consolidated operating revenue grew by 13.0% to EUR 97.8 million (Q1 2012: EUR 86.6 million). In line with corporate strategy, the proportion of foreign business in consolidated operating revenue increased further to 29.7% after 26.2% for the same quarter the year before.
Revenue from the sale of used leasing vehicles, which is generally subject to fluctuations, came to EUR 38.2 million, which was 20.1% less than the first quarter of 2012 (EUR 47.9 million).
For the first quarter Sixt Group recorded earnings before net finance costs and taxes (EBIT) of EUR 32.0 million, which is 17.2% less than in the corresponding period the year before (EUR 38.6 million).
Consolidated earnings before taxes (EBT), the Group's key earnings indicator, came to EUR 22.3 million, which was 14.4% less than the year before at EUR 26.0 million.
This earnings performance was in line with the company's own expectations. Account must be taken of the fact that the earnings position was not only affected by the recessionary situation in Europe, but also by the start-up costs for strategic growth initiatives (among others setting up the rental business in the USA and the premium carsharing offer DriveNow).
After taxes and minority interests, the Sixt Group showed a quarterly profit of EUR 15.4 million (Q1 2012: EUR 17.9 million). This is equivalent to basic earnings per share of EUR 0.32 (Q1 2012: EUR 0.37).
With their presence in Germany, France, the UK, Spain, the Benelux countries, Austria, Switzerland and Monaco, Sixt subsidiaries cover more than 70% of the European rental market. In addition, the company has an active presence in the USA through its own rental stations. In the other European countries and in other global regions, the Sixt brand is represented by a close-knit network of franchisees. The first quarter of 2013 also witnessed the start of franchise operations on the US market. Overall, Sixt is now active in around 100 countries with the Vehicle Rental Business Unit.
In the first quarter of 2013, the focus was on the following issues in particular:
Facebook and participated for one full week in the published contributions of 60 German universities.
At the end of the first quarter of 2013 the number of rental offices (including franchisees) was 1,972 worldwide as against 1,970 as of 31 December 2012. The number of rental offices in Germany as of 31 March 2013 came to 489 as against the 494 recorded at the end of 2012.
At 67,100 the average number of vehicles in Germany and other countries (excluding franchisees) for the first three months of the year was significantly below the level for full fiscal year 2012 (76,800 vehicles) and also below the average number of the first three months of 2012 (71,700 vehicles). In view of an expected downturn in demand, Sixt already started to call vehicle orders more cautiously in the second half of 2012.
Rental revenue for the first quarter of 2013 came to EUR 211.8 million, or some 1.8% below the same period last year (EUR 215.7 million). In Germany rental revenue decreased to EUR 134.7 million (Q1 2012: EUR 148.9 million; -9.5%). As was the case during 2012, the worsening economic climate had a dampening effect on rental demand in Germany, above all with business and corporate customers. Nonetheless, abroad Sixt remained on a growth track. Rental revenues generated outside Germany increased by 15.3% during the first three months to EUR 77.1 million (Q1 2012: EUR 66.8 million). The development of revenue in France, Spain as well as Great Britain was once again particularly encouraging.
Other revenue from rental business was EUR 21.3 million and therefore 2.6% less than the prior-year figure (Q1 2012: EUR 21.8 million). First quarter revenue for the Vehicle Rental Business Unit came to EUR 233.1 million, after EUR 237.5 million over the same period of last year (-1.9%).
The Business Unit's quarterly EBT came to EUR 20.2 million and was thus some 6.8% below the corresponding figure of last year (EUR 21.6 million). With an operative return on sales of 8.7% (previous year's period: 9.1%) the earnings position remained on a high level though. This holds true all the more so as the result must take into account the start-up costs included for strategic growth initiatives (among others setting up the rental business in the USA and the premium carsharing offer DriveNow).
Sixt Leasing is one of Germany's largest vendor-neutral, non-bank full-service leasing companies, whose service offers extends not only to classic finance leasing but also to a broad range of services for efficient fleet management that reduces the customers' mobility costs.
In the opinion of the Bundesverband Deutscher Leasingunternehmen e.V. (BDL – German Association of Leasing Companies) the growth perspectives for the leasing market are tricky for the current year, above all because of a substantially more restrained business climate in the worldwide automotive industry. According to data from the Verband der Automobilindustrie e.V. (VDA – German Association of the Automotive Industry), in the first quarter of 2013 new vehicle registrations in Western Europe were 9.8% down on the previous year. At the same time, it is Sixt's view that the increasing cost pressures within companies and corporations holds new opportunities for fullservice providers, above all in the areas fleet management and consultation.
In the first quarter of 2013, the focus was above all on the following issues:
As of 31 March 2013 the Business Unit's total number of leases inside and outside Germany (excluding franchisees) was 62,900 and this a good 1% above the figure of the end of 2012 (62,200). Compared to the figure at the end of the first quarter of 2012 (57,800) the growth in contracts amounted to 8.8%. Sixt Leasing's sales activities continue to focus on the generation of higher-margin full-service agreements.
In the first quarter of 2013 the Business Unit generated revenue of EUR 95.9 million, an increase of 2.8% on the same quarter of last year (EUR 93.3 million). Leasing revenue in Germany increased by 1.2% as against the prior-year period to EUR 80.4 million (Q1 2012: EUR 79.4 million). In Europe outside Germany leasing revenues climbed 12.2% to EUR 15.5 million as against the prior-year period (EUR 13.9 million).
The sale of used leasing vehicles in the first quarter generated EUR 38.2 million (Q1 2012: EUR 47.9 million; –20.1%). Account must be taken of the fact that this form of revenue can be subject to substantial fluctuations at times, for example because of shifts in the individual quarters. Total revenue for the Business Unit amounted to EUR 134.1 million, compared to EUR 141.2 million for the same period last year (-4.9%).
The Leasing Business Unit's EBT for the period January to March 2013 was EUR 4.0 million after EUR 5.5 million in the same quarter the year before. This decline is not least a consequence of the pressure on margins in an ever more intense competitive environment.
The international stock markets generally continued the positive development of the previous year in the first quarter of 2013. However, this development varied between the economic regions: in Europe, many indices performed heterogeneously, above all because of the persisting sovereign debt crisis that also spread to Cyprus, as well as generally disappointing market data. In the USA, on the other hand, the robust business data, rebounding M&A activities and the fiscal measures of the Federal Reserve Bank all had a stimulating effect on the stock exchanges.
The German stock index (DAX) closed the first quarter at 7,795 points, which translates into a 2.4% growth for the period January to March. The SDAX, which includes Sixt AG's ordinary shares, also performed positively and closed the quarter at 5,698 points, which is an increase of 8.5%.
Sixt shares, both ordinary and preference shares, contracted slightly in the period under review. However, account must be taken of the continued upwards trend of both shares in the time from mid-November 2012 to the end of January 2013. This was followed by a period of consolidation which lasted until the end of March 2013.
The price of ordinary shares closed out the first quarter at EUR 15.30, a reduction of 2.4% over the price at the year-end 2012. The high for the quarter was reached on 24 January 2013 at EUR 17.55, the low on 27 March 2013 at EUR 15.23.
Preference shares closed out the quarter at EUR 13.16, which was 4.6% down on the closing price at the end of 2012. The high for the preference share was on 24 January 2013 at EUR 14.82 and the low on 27 March 2013 at EUR 13.09 (all figures refer to Xetra closing prices).
The opportunity and risk profile of the Sixt Group in the first three 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.
No events of special significance for the net assets, financial position or results of operations of the Sixt Group occurred after the reporting date of 31 March 2013.
The Managing Board confirms its previous projections for the full year 2013 and expects domestic demand in the Vehicle Rental Business Unit to weaken, while the growth path in the other European countries and the USA is set to continue. All in all, the Managing Board expects consolidated rental revenues to contract slightly in 2013.
Against the backdrop of invigorated sales efforts, also in the private customer segment and the higher contract portfolio, Sixt expects revenues in the Leasing Business Unit to remain stable or even grow slightly in 2013.
In 2013 Sixt will once again adhere to the principle of giving preference to adequate margins over volume growth ("Earnings before growth"). Nonetheless, strategic growth initiatives, such as the expansion in the USA, will be continued without restrictions.
Subject to the general economic outlook in Europe not worsening further than projected, the Managing Board reckons that the Sixt Group will generate EBT marginally below the previous year's level, albeit with an earnings position and return on equity that are once again satisfactory in the prevailing market conditions.
Other operating income for the first quarter amounted to EUR 11.4 million, which was below the prior-year period (EUR 12.2 million).
Fleet expenses and cost of lease assets declined by 3.6% to EUR 151.6 million in the first three months (prior year: EUR 157.2 million). Reductions were recorded particularly for fuel and insurance.
Personnel expenses for the period January to March 2013 remained on the level of the previous year (EUR 41.0 million) at EUR 41.4 million.
At EUR 70.4 million, depreciation and amortisation for the first quarter was 13.3% lower than the figure for the same period of the previous year (EUR 81.2 million). This is mainly attributable to depreciation of rental vehicles, which were 29.9% down to EUR 31.3 million (Q1 2012: EUR 44.7 million). This reduction reflects the lower average fleet compared with the previous year's quarter. Contrasting this development were the depreciation of lease assets, which increased against the previous year's corresponding quarter by 6.5% to EUR 36.3 million (Q1 2012: EUR 34.1 million).
Other operating expenses increased to EUR 85.2 million (Q1 2012: EUR 74.9 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 quarter under review the Sixt Group records earnings before net finance costs and taxes (EBIT) of EUR 32.0 million (Q1 2012: EUR 38.6 million).
The net finance costs for the first three months fell in comparison to the prior-year period, to EUR -9.7 million (Q1 2012: EUR -12.6 million), which was the result of lower interest payments on financial liabilities 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 -0.6 million (Q1 2012: EUR +0.1 million).
As a result, the Group reported EBT of EUR 22.3 million for the first three months of the year (Q1 2012: EUR 26.0 million).
The consolidated profit after taxes and before minority interests for the period amounted to EUR 15.4 million (Q1 2012: EUR 17.9 million). As in the prior-year period, the portion of consolidated profit or loss attributable to minority interests was not material.
On the basis of 48.06 million outstanding shares (weighted average for the first three months for ordinary and preference shares; previous year: 48.48 million shares outstanding), earnings per share (basic) for the first three months amounted to EUR 0.32, after EUR 0.37 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 31 March 2013, the Group's total assets, at EUR 2.26 billion, were EUR 86.1 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. At EUR 748.5 million per 31 March 2013 they were EUR 8.1 million higher than the figure reported at the end of 2012. All in all, non-current assets were up EUR 11.3 million to EUR 860.2 million. Current assets increased per reporting date by EUR 74.8 million and amounted to EUR 1.4 billion at the end of March. This was essentially due to a higher total reported for other financial assets (EUR +87.9 million as against the end of 2012). As of reporting date the Group's cash and cash equivalents came to EUR 37.6 million (31 December 2012: EUR 67.3 million).
Due to the positive first quarter result the Sixt Group's equity was EUR 645.5 million, up EUR 12.7 million from the end of 2012. The equity ratio amounted to 28.6% (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 31 March 2013 totalled EUR 838.4 million, an increase of EUR 3.1 million from 31 December 2012 (EUR 835.3 million). Among the major items were financial liabilities, at EUR 790.6 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 31 March 2013 totalled EUR 775.9 million, and were thus EUR 70.3 million above the figure from the end of 2012 (EUR 705.6 million). This is primarily due to an increase in trade payables contingent on the reporting date. At EUR 184.3 million financial liabilities were on a par with the level at the year end 2012 (EUR 186.8 million).
As at the end of the first quarter of 2013, the Sixt Group reported cash flows before changes in working capital of EUR 82.9 million, (Q1 2012: EUR 100.1 million) Adding in working capital results in a net cash inflow from operating activities of EUR 111.6 million for the first three months, which is primarily the result of an increase in trade payables contingent on the reporting date (Q1 2012: cash inflow of EUR 137.0 million).
Net cash flows used in investing activities led to a cash outflow of EUR 139.4 million (Q1 2012: cash used of EUR 73.9 million), primarily as a result of investments in lease assets and current financial assets.
Because of the repayment of current financial liabilities the financing activities led to a cash outflow of EUR 2.0 million (Q1 2012: cash used of EUR 61.6 million).
After minor changes relating to exchange rates, total cash flows resulted in a reduction in cash and cash equivalents against the figure of the year-end 2012 by EUR 29.7 million as at 31 March 2013 (Q1 2012: increase of EUR 1.3 million).
In the period from January to March 2013 Sixt added around 36,500 vehicles to the rental and leasing fleet (Q1 2012: 39,300 vehicles) with a total value of EUR 0.88 billion (Q1 2012: EUR 0.93 billion). In keeping with an expected lower 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 marginally lower than the previous year (2012: EUR 3.69 billion).
| EUR thou. | Q1 2013 |
Q1 2012 |
|---|---|---|
| Revenue | 369,112 | 380,753 |
| Other operating income | 11,403 | 12,219 |
| Fleet expenses and cost of lease assets | 151,607 | 157,237 |
| Personnel expenses | 41,355 | 41,023 |
| Depreciation and amortisation expense1) | 70,361 | 81,159 |
| Other operating expenses | 85,207 | 74,905 |
| Profit from operating activities (EBIT) | 31,985 | 38,648 |
| Net finance costs (net interest expense and net income from financial assets) |
-9,685 | -12,607 |
| Profit before taxes (EBT) | 22,300 | 26,041 |
| Income tax expense | 6,870 | 8,161 |
| Consolidated profit for the period | 15,430 | 17,880 |
| Of which attributable to minority interests | 14 | -37 |
| Of which attributable to shareholders of Sixt AG | 15,416 | 17,917 |
| Earnings per share in EUR (basic) | 0.32 | 0.37 |
| Average number of shares 2) (basic / weighted) |
48,058,286 | 48,480,195 |
1) of which depreciation of rental vehicles (EUR thou.): Q1 2013: 31,333 (Q1 2012: 44,722)
of which depreciation of lease assets (EUR thou.): Q1 2013: 36,337 (Q1 2012: 34,116)
2) Number of ordinary and preference shares, weighted average in the period
| Statement of Comprehensive Income EUR thou. |
Q1 2013 |
Q1 2012 |
|---|---|---|
| Consolidated profit | 15,430 | 17,880 |
| Recognised in other comprehensive income | ||
| Currency translation gains/losses | -1,722 | 42 |
| Impairment losses/reversals of impairment losses/disposals on | ||
| available-for-sale assets | - | 525 |
| Related deferred tax | - | -130 |
| Total comprehensive income | 13,708 | 18,317 |
| of which attributable to minority interests | 14 | -37 |
| of which attributable to shareholders of Sixt Aktiengesellschaft | 13,694 | 18,354 |
| Assets | Interim report | Consolidated |
|---|---|---|
| financial statements | ||
| EUR thou. | 31 March 2013 | 31 December 2012 |
| Current assets | ||
| Cash and bank balances | 37,585 | 67,280 |
| Income tax receivables | 4,076 | 1,884 |
| Other financial assets | 87,916 82,358 |
- 50,217 |
| Current other receivables and assets | 223,736 | 244,857 |
| Trade receivables | 35,286 | 34,406 |
| Inventories | 928,646 | 926,176 |
| Rental vehicles | ||
| Total current assets | 1,399,603 | 1,324,820 |
| Non-current assets | ||
| Deferred tax assets | 12,865 | 13,585 |
| Non-current other receivables and assets | 6,464 | 6,861 |
| Non-current financial assets | 3,608 | 2,421 |
| Lease assets | 748,480 | 740,373 |
| Investment property | 3,069 | 3,078 |
| Property and equipment | 53,562 | 51,131 |
| Intangible assets | 13,746 | 13,001 |
| Goodwill | 18,442 | 18,442 |
| Total non-current assets | 860,236 | 848,892 |
| Total assets | 2,259,839 | 2,173,712 |
| Equity and liabilities EUR thou. |
Interim report 31 March 2013 |
Consolidated financial statements 31 December 2012 |
| Current liabilities and provisions | ||
| Current other liabilities | 62,090 | 68,660 |
| Current finance lease liabilities | 34,733 | 47,942 |
| Trade payables | 384,810 | 294,826 |
| Current financial liabilities | 184,271 | 186,833 |
| Income tax provisions | 50,636 | 51,232 |
| Current other provisions | 59,374 | 56,151 |
| Total current liabilities and provisions | 775,914 | 705,644 |
| Non-current liabilities and provisions | ||
| Deferred tax liabilities | 13,154 | 13,608 |
| Non-current other liabilities | 33,698 | 30,612 |
| Non-current financial liabilities | 790,676 | 790,114 |
| Non-current other provisions | 866 | 925 |
| Total non-current liabilities and provisions | 838,394 | 835,259 |
| Equity | ||
| Subscribed capital | 123,029 | 123,029 |
| Capital reserves | 207,142 | 206,702 |
| Other reserves (including retained earnings) | 315,325 | 303,055 |
| Minority interests | 35 | 23 |
| Total equity | 645,531 | 632,809 |
| EUR thou. | Subscribed capital |
Capital reserves |
Other reserves1) |
Treasury shares |
Equity attributable to shareholders of Sixt AG |
Minority interests |
Total equity |
|---|---|---|---|---|---|---|---|
| 1 January 2013 | 123,029 206,702 | 303,055 | - | 632,786 | 23 | 632,809 | |
| Consolidated profit Q1 2013 |
15,416 | 15,416 | 14 | 15,430 | |||
| Dividend payments for 2012 |
- | ||||||
| Currency translation differences |
-1,722 | -1,722 | -1,722 | ||||
| Other changes | 440 | -1,424 | -984 | -2 | -986 | ||
| 31 March 2013 | 123,029 207,142 | 315,325 | - | 645,496 | 35 | 645,531 | |
| EUR thou. | Subscribed capital |
Capital reserves |
Other reserves1) |
Treasury shares |
Equity attributable to shareholders of Sixt AG |
Minority interests |
Total equity |
| 1 January 2012 | 129,154 200,425 | 292,364 | -26,010 | 595,933 | 151 | 596,084 | |
| Consolidated profit Q1 2012 |
17,917 | 17,917 | -37 | 17,880 |
Other changes 399 370 -8,555 -7,786 1 -7,785
31 March 2012 129,154 200,824 310,693 -34,565 606,106 115 606,221
1) including retained earnings
Dividend payments for
Currency translation differences
2011
-
42 42 42
| EUR thou. | Q1 2013 |
Q1 2012 |
|---|---|---|
| Operating activities | ||
| Consolidated profit for the period | 15,430 | 17,880 |
| Amortisation of intangible assets | 800 | 724 |
| Depreciation of property and equipment and investment property | 1,891 | 1,597 |
| Depreciation of lease assets | 36,337 | 34,116 |
| Depreciation of rental vehicles | 31,333 | 44,722 |
| Result of the disposal of intangible assets, property and equipment | -29 | 3 |
| Other non-cash income and expense | -2,822 | 1,018 |
| Cash flow | 82,940 | 100,060 |
| Change in non-current other receivables and assets | 397 | -144 |
| Change in deferred tax assets | 720 | -1,637 |
| Change in rental vehicles, net | -33,803 | -10,323 |
| Change in inventories | -880 | 3,408 |
| Change in trade receivables | 21,121 | -3,344 |
| Change in current other receivables and assets | -32,141 | -16,864 |
| Change in income tax receivables | -2,192 | -127 |
| Change in non-current other provisions | -59 | -57 |
| Change in non-current other liabilities | 3,086 | 1,480 |
| Change in deferred tax liabilities | -454 | -492 |
| Change in current other provisions | 3,223 | 3,435 |
| Change in income tax provisions | -596 | 1,471 |
| Change in trade payables | 89,984 | 53,185 |
| Change in current other liabilities | -19,779 | 6,991 |
| Net cash flows from operating activities | 111,567 | 137,042 |
| Investing activities | ||
| Proceeds from disposal of intangible assets, property and equipment and investment property | 244 | 993 |
| Proceeds from disposal of lease assets | 37,194 | 47,213 |
| Proceeds from disposal of non-current financial assets | - | 26 |
| Change in current financial assets | -87,916 | -41,155 |
| Payments to acquire intangible assets, property and equipment | -6,074 | -4,452 |
| Payments to acquire lease assets | -81,638 | -76,544 |
| Payments to acquire non-current financial assets | -1,408 | - |
| Change in non-current financial assets due to changes in reporting entity structure | 221 | - |
| Net cash flows used in investing activities | -139,377 | -73,919 |
| Financing activities | ||
| Change in treasury shares | - | -8,555 |
| Change in current financial liabilities | -2,562 | -177,506 |
| Change in non-current financial liabilities | 562 | 124,446 |
| Net cash flows used in financing activities | -2,000 | -61,615 |
| Net change in cash and cash equivalents | -29,810 | 1,508 |
| Effect of exchange rate changes on cash and cash equivalents | 115 | -206 |
| Change in cash and cash equivalents attributable to changes in reporting entity structure | - | 25 |
| Cash and cash equivalents at 1 January | 67,280 | 31,374 |
| Cash and cash equivalents at 31 March | 37,585 | 32,701 |
The consolidated financial statements of Sixt Aktiengesellschaft as at 31 December 2012 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 are principally applied in the interim consolidated financial statements as at 31 March 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 were prepared in euros.
The accompanying interim consolidated financial statements as at 31 March 2013 have not been audited or reviewed by the Company's auditors, Deloitte & Touche GmbH Wirtschaftsprüfungsgesellschaft, Munich.
Sixt Aktiengesellschaft, domiciled in Zugspitzstrasse 1, 82049 Pullach, Germany, is entered in section B of the commercial register at the Munich Local Court, under the number 79160.
Sixt College GmbH, Pullach, Sixt Autoland GmbH, Pullach, SXT Reparatur & Service GmbH, Pullach, and Sixt Executive GmbH, Pullach, (initial consolidation in each case as at 1 January 2013) were consolidated for the first time in the fiscal year. These are companies founded by the Sixt Group. Their initial consolidation had no noteworthy effects on the Group's net assets, financial position and results of operations. Compared with reporting date as at 31 March 2012, SXT Reservierungs- und Vertriebs-GmbH, Rostock, was deconsolidated as at 31 May 2012. As of 1 July 2012 the previously fully
consolidated autohaus24 GmbH, Pullach, was consolidated only on a pro rata basis (50%).
Revenue is broken down as follows:
| EUR million | Q1 | Q1 | Change |
|---|---|---|---|
| 2013 | 2012 | in % | |
| Operating revenue | 329.0 | 330.8 | -0.6 |
| thereof Rental revenue | 211.8 | 215.7 | -1.8 |
| thereof other revenue from Rental Business | 21.3 | 21.8 | -2.6 |
| thereof Leasing revenue | 95.9 | 93.3 | 2.8 |
| Leasing sales revenue | 38.2 | 47.9 | -20.1 |
| Other revenue | 1.9 | 2.1 | -7.2 |
| Consolidated revenue | 369.1 | 380.8 | -3.1 |
Fleet expenses and cost of lease assets are broken down as follows:
| EUR million | Q1 2013 |
Q1 2012 |
Change in % |
|---|---|---|---|
| Repairs, maintenance, reconditioning | 45.9 | 45.5 | 1.1 |
| Fuel | 27.8 | 28.8 | -3.7 |
| Insurance | 16.1 | 16.6 | -3.3 |
| Transportation | 8.4 | 8.2 | 2.0 |
| Other, including selling expenses | 53.4 | 58.1 | -8.1 |
| Group total | 151.6 | 157.2 | -3.6 |
Expenses of EUR 69.8 million (Q1 2012: EUR 67.1 million) are attributable to the Vehicle Rental Business Unit and EUR 81.8 million to the Leasing Business Unit (Q1 2012: EUR 90.1 million).
Other operating expenses are broken down as follows:
| EUR million | Q1 2013 |
Q1 2012 |
Change in % |
|---|---|---|---|
| Leasing expenses | 15.2 | 12.9 | 18.0 |
| Commissions | 17.9 | 17.7 | 0.8 |
| Expenses for buildings | 12.1 | 11.0 | 10.0 |
| Other selling and marketing expenses | 9.3 | 9.3 | -0.1 |
| Expenses from write-downs of receivables | 0.5 | 2.4 | -77.6 |
| Miscellaneous | 30.2 | 21.6 | 39.8 |
| Group total | 85.2 | 74.9 | 13.8 |
Net finance costs of EUR -9.7 million (Q1 2012: EUR -12.6 million) contained a net interest expense of EUR –9.5 million (Q1 2012: EUR -13.3 million). The net finance costs include a negative result from interest rate hedging transactions in the amount of EUR -0.6 million (Q1 2012: EUR +0.1 million).
The income tax expense is composed of current income taxes in the amount of EUR 6.7 million (Q1 2012: EUR 10.4 million), as well as deferred taxes of EUR 0.2 million (Q1 2012: EUR -2.3 million). Based on its profit before taxes (EBT), the Sixt Group's tax rate was 31% in the period under review (Q1 2012: 31%).
Earnings per share are as follows:
| Basic earnings per share | Q1 2013 |
Q1 2012 |
|
|---|---|---|---|
| Consolidated profit for the period after minority interests | EUR thou. | 15,416 | 17,917 |
| Profit attributable to ordinary shares | EUR thou. | 9,772 | 11,393 |
| Profit attributable to preference shares | EUR thou. | 5,644 | 6,524 |
| Weighted average number of ordinary shares1) | 31,146,832 | 31,483,367 | |
| Weighted average number of preference shares1) | 16,911,454 | 16,996,828 | |
| Earnings per ordinary share1) | EUR | 0.31 | 0.36 |
| Earnings per preference share1) | EUR | 0.33 | 0.38 |
The profit 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, and if required, taking due account of the respective number of treasury shares. Earnings per share are calculated by dividing the profit 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 | 31 Mar. 2013 | 31 Dec. 2012 |
|---|---|---|
| Current finance lease receivables | 4.2 | 4.3 |
| Receivables from affiliated companies and | ||
| from other investees | 5.0 | 5.9 |
| Recoverable taxes | 44.8 | 12.6 |
| Insurance claims | 1.9 | 1.9 |
| Prepaid expenses | 17.2 | 16.6 |
| Other financial assets | 87.9 | - |
| Other assets | 13.4 | 10.8 |
| Group total | 174.4 | 52.1 |
The recoverable taxes item includes income tax receivables of EUR 4.1 million (31 December 2012: EUR 1.9 million).
As of reporting date, the rental vehicles item increased by EUR 2.4 million compared to 31 December 2012 for seasonal reasons, from EUR 926.2 million to EUR 928.6 million.
Non-current other receivables and assets mainly include the non-current portion of finance lease receivables amounting to EUR 3.4 million (31 December 2012: EUR 4.0 million).
Lease assets increased by EUR 8.1 million to EUR 748.5 million as at the reporting date (31 December 2012: EUR 740.4 million). As was the case already in 2012, this increase is mainly the result of a once again higher contract portfolio.
Current financial liabilities falling due within one year are broken down as follows:
| EUR million | 31 Mar. 2013 | 31 Dec. 2012 |
|---|---|---|
| Borrower's note loans | 130.0 | 130.0 |
| Liabilities to banks | 29.5 | 39.1 |
| Other liabilities | 24.8 | 17.7 |
| Group total | 184.3 | 186.8 |
The reported borrower's note loans are due for repayment in August 2013.
As in the case of year-end 2011, current other provisions consist mainly of provisions for taxes, legal costs, 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 | ||
|---|---|---|---|---|
| 31 Mar. 2013 | 31 Dec. 2012 | 31 Mar. 2013 | 31 Dec. 2012 | |
| Borrower's note loans | 235.8 | 235.8 | 35.9 | 35.9 |
| Bonds | 245.0 | 244.3 | 250.6 | 250.5 |
| Liabilities to banks | 23.1 | 23.2 | 0.2 | 0.4 |
| Group total | 503.9 | 503.3 | 286.7 | 286.8 |
Borrower's note loans were raised in several tranches, with nominal terms of between three and seven years. The bonds relate mainly to the 2010/2016 bond issue from 2010 (nominal value EUR 250 million) and the 2012/2018 bond issue from 2012 (nominal value EUR 250 million).
The share capital of Sixt Aktiengesellschaft as at 31 March 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 |
| Preference shares | 16,911,454 | 43,293,322 |
| Balance at 31 March 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 revenue from vehicle sales, 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 quarter of 2013 (compared with the first quarter of 2012) is as follows:
| By Business Unit | Rental | Leasing | Other Reconciliation |
Group | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| EUR million | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 |
| External revenue | 233.1 | 237.5 | 134.1 | 141.2 | 1.9 | 2.1 | 0.0 | 0.0 | 369.1 | 380.8 |
| Internal revenue | 1.2 | 2.3 | 2.7 | 2.8 | 4.2 | 3.3 | -8.1 | -8.4 | 0.0 | 0.0 |
| Total revenue | 234.3 | 239.8 | 136.8 | 144.0 | 6.1 | 5.4 | -8.1 | -8.4 | 369.1 | 380.8 |
| Depreciation / amortisation expense |
33.8 | 46.8 | 36.4 | 34.1 | 0.2 | 0.2 | 0.0 | 0.0 | 70.4 | 81.2 |
| Other non-cash expense | 3.3 | 4.2 | 0.0 | 0.1 | 1.4 | 1.8 | 0.0 | 0.0 | 4.7 | 6.1 |
| EBIT1) | 23.2 | 30.4 | 10.2 | 11.5 | -1.4 | -3.3 | 0.0 | 0.0 | 32.0 | 38.6 |
| Interest income | 0.4 | 0.4 | 0.3 | 0.3 | 8.5 | 13.3 | -8.8 | -13.5 | 0.4 | 0.5 |
| Interest expense | -3.4 | -9.2 | -6.5 | -6.3 | -8.8 | -11.8 | 8.8 | 13.5 | -9.9 | -13.8 |
| Other net financial income2) |
0.0 | 0.0 | 0.0 | 0.0 | -0.2 | 0.7 | 0.0 | 0.0 | -0.2 | 0.7 |
| EBT3) | 20.2 | 21.6 | 4.0 | 5.5 | -1.9 | -1.1 | 0.0 | 0.0 | 22.3 | 26.0 |
| Investments4) | 7.3 | 4.2 | 81.7 | 76.5 | 0.1 | 0.3 | 0.0 | 0.0 | 89.1 | 81.0 |
| Segment assets | 1,378.8 | 1,540.5 | 861.6 | 763.2 | 1,522.6 | 1,559.8 | -1,520.2 | -1,530.4 | 2,242.8 | 2,333.1 |
| Segment liabilities | 850.7 | 1,334.5 | 816.5 | 693.6 | 979.6 | 1,067.7 | -1,096.3 | -1,413.4 | 1,550.5 | 1,682.4 |
| By Region | Germany | Abroad | Reconciliation | Group | ||||
|---|---|---|---|---|---|---|---|---|
| EUR million | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 |
| Total revenue | 268.3 | 291.1 | 103.3 | 92.0 | -2.5 | -2.3 | 369.1 | 380.8 |
| Investments4) | 70.5 | 65.5 | 18.6 | 15.5 | 0.0 | 0.0 | 89.1 | 81.0 |
| Segment assets | 1,873.9 | 2,048.1 | 764.5 | 626.2 | -395.6 | -341.2 | 2,242.8 | 2,333.1 |
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 flows from/used in operating activities include the following inflows and outflows of cash:
| EUR million | Q1 2013 |
Q1 2012 |
|---|---|---|
| Interest received | 0.7 | 1.2 |
| Interest paid | 6.3 | 1.6 |
| Dividends received | 0.5 | 0.3 |
| Income taxes paid | 8.9 | 10.3 |
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 S.à.r.l., Luxembourg (EUR 1.2 million, 31 December 2012: EUR 0.8 million), SXT Telesales GmbH (EUR 0 million, 31 December 2012: EUR 0 million), Sixt Franchise USA LLC (EUR 0.5 million, 31 December 2012: EUR 0.2 million), Sixt SARL, Monaco (EUR 1.0 million, 31 December 2012: EUR 0.8 million), kud.am GmbH (EUR 0 million, 31 December 2012: EUR 0 million) and Sixt International Holding GmbH (EUR 0.1 million, 31 December 2012: EUR 0.1 million). The receivables from SXT Telesales GmbH and kud.am GmbH are impaired. Substantial liabilities were recognised in respect of Sixt Aéroport SARL (EUR 0.3 million, 31 December 2012: EUR 0.4 million), Sixt Sud SARL (EUR 0.3 million, 31 December 2012: EUR 0.4 million), Sixti SARL (EUR 0.3 million, 31 December 2012: EUR 0.4 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), UNITED rentalsystem SARL (EUR 0.3 million, 31 December 2012: EUR 0.3 million), Sixt Franchise SARL (EUR 0.2 million, 31 December 2012: EUR 0.2 million), Sixt Executive France SARL (EUR 0.4 million, 31 December 2012: EUR 0.5 million), Sixt Executive GmbH (EUR 0 million, 31 December 2012: EUR 0.1 million) and Sixt Nord SARL (EUR 0.5 million, 31 December 2012: EUR 0.6 million). The volume of transactions with these related parties 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 0.1 million (Q1 2012: EUR 0.1 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 31 March 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 Aktiengesellschaft.
Pullach, 27 May 2013
Sixt Aktiengesellschaft The Managing Board
Sixt Aktiengesellschaft Zugspitzstrasse 1 82049 Pullach Germany
Phone +49 (0)89/ 7 44 44 - 5104 Fax +49 (0)89/ 7 44 44 - 85104 www.sixt.de http://ag.sixt.de
Published by: Sixt Aktiengesellschaft Zugspitzstrasse 1 82049 Pullach Germany
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.