Quarterly Report • Aug 14, 2018
Quarterly Report
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Interim Report as of 30 June 2018
| 1. INTERIM MANAGEMENT REPORT OF THE GROUP | 2 |
|---|---|
| 1.1 Group fundamentals | 2 |
| 1.1.1 General disclosures | 2 |
| 1.1.2 Group activities and services portfolio | 2 |
| 1.2 Business report | 3 |
| 1.2.1 Group business development | 3 |
| 1.2.2 Business development by segments | 4 |
| 1.2.3 Earnings performance | 5 |
| 1.2.4 Net assets position | 6 |
| 1.2.5 Financial position | 6 |
| 1.2.6 Liquidity position | 6 |
| 1.2.7 Investments | 7 |
| 1.3 Report on events subsequent to reporting date | 7 |
| 1.4 Report on outlook | 7 |
| 1.5 Report on risks and opportunities | 8 |
| 2. INTERIM FINANCIAL STATEMENTS OF THE GROUP AS OF 30 JUNE 2018 | 9 |
| 2.1 Consolidated income statement and statement of comprehensive income | 9 |
| 2.2 Consolidated balance sheet | 10 |
| 2.3 Consolidated cash flow statement | 11 |
| 2.4 Consolidated statement of changes in equity | 12 |
| 3. CONDENSED NOTES TO THE INTERIM FINANCIAL STATEMENTS OF THE GROUP FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2018 |
13 |
| 3.1 Information about the Company | 13 |
| 3.2 General disclosures | 13 |
| 3.3 Scope of consolidated entities | 15 |
| 3.4 Selected explanatory notes to the consolidated income statement | 15 |
| 3.5 Selected explanatory notes to the consolidated balance sheet | 18 |
| 3.6 Group segment reporting | 24 |
| 3.7 Related party disclosures | 25 |
| 3.8 Substantial events subsequent to the reporting date | 25 |
| 4. RESPONSIBILITY STATEMENT | 25 |
Due to rounding individual figures presented in this interim report may not add up exactly to the totals shown and half-year figures listed may not follow from adding up the individual quarterly figures. Furthermore, the percentage figures presented may not exactly reflect the absolute figures they relate to.
Sixt Leasing SE (the "Company") is the parent company of the Sixt Leasing Group, which mainly conducts its business under the business names of 'Sixt Leasing', 'Sixt Mobility Consulting', 'Sixt Neuwagen' and 'autohaus24'. The Company has its registered offices in Zugspitzstrasse 1, 82049 Pullach/Germany, and is registered in the Commercial Register of Munich Local Court under docket number HRB 227195.
The Group interim financial report is prepared in accordance with the applicable provisions of section 115 of the Wertpapierhandelsgesetz (WpHG - German Securities Trading Act) as well as in compliance with the International Financial Reporting Standards (IFRS) that are applicable for interim financial reports as published by the IASB and as adopted by the EU. The Group interim financial report should be read together with the Annual Report for the fiscal year 2017. The latter contains a comprehensive presentation of business activities.
As of June 2018, the Company's share capital amounted to EUR 20,611,593, divided in the same number of ordinary no-par-value bearer shares with a notional amount of EUR 1.00 per share. The shares are fully paid up.
The largest shareholder with 41.9% of the Company's share capital and voting rights is Sixt SE, Pullach.
The Sixt Leasing Group is organised into two business units (segments), Leasing and Fleet Management.
Through its Leasing business unit the Sixt Leasing Group acts as one of the largest non-bank, vendor-neutral leasing companies in Germany. In addition, the business unit is also represented by its operative subsidiaries in France, Switzerland, Austria and the Netherlands. The Leasing business unit comprises the two business fields Fleet Leasing (corporate customer leasing) and Online Retail (private and commercial customer leasing).
In its Fleet Leasing business field, the Group offers lease financing and associated services (so-called full-service leasing) to corporate customers. Target customers for this business field are companies with an adequately sized fleet and vehicles from different manufacturers. Their fleets must have a certain complexity for Sixt Leasing to deploy its competitive strengths regarding independency, consulting and service. Based on Sixt Leasing SE's longstanding and extensive expertise in fleet procurement and fleet management, customers can expect the sustainable optimisation of the total cost of ownership of their fleets.
Sixt Leasing SE operates its Online Retail business field via the two online platforms sixt-neuwagen.de and autohaus24.de. The websites give private and commercial customers (with up to 20 vehicles) the opportunity to configure the latest vehicle models from about 35 different car manufacturers, to request their individual leasing offer and to order online. With the online-based vehicle leasing for private and commercial customers Sixt Leasing addresses an almost undeveloped market in Germany.
The Sixt Leasing Group operates its Fleet Management business unit via Sixt Mobility Consulting GmbH, which was founded in 2011, and further subsidiaries of Sixt Leasing SE. So the expertise in managing large-sized customer fleets is also offered to customers, who purchased their vehicles or leased them from other providers. The target group for this service ranges from mid-sized businesses to international corporations. Sixt Mobility Consulting combines the holistic fleet management with individual brand-independent consulting. It manages large customer fleets with the aim of achieving measurable quality and operating cost optimisation, and thus raising the efficiency of the fleets.
During the first half year of 2018 the Sixt Leasing Group recorded a positive performance in line with its own expectations.
As of 30 June 2018 the Group's total number of contracts in and outside Germany (excluding franchise and cooperation partners) amounted to 133,800 contracts and was 0.7% above the figure on 31 December 2017 (132,900 contracts).
Consolidated revenue rose by 6.9% during the first half of 2018 to EUR 394.3 million (H1 2017: EUR 368.7 million). Operating revenue, which does not include the proceeds from vehicle sales, gained 5.6% to EUR 236.1 million (H1 2017: EUR 223.6 million). Sales revenue from the sale of returned leasing vehicles in the Leasing business unit and from the remarketing of customer vehicles in the Fleet Management business unit increased by 9.0% to EUR 158.2 million (H1 2017: EUR 145.1 million).
Earnings before interest, taxes and depreciation (EBITDA) went up by 3.4% to EUR 121.0 million (H1 2017: EUR 117.0 million). Earnings before taxes (EBT) decreased in line with expectations by 5.6% to EUR 15.8 million (H1 2017: EUR 16.8 million). As a consequence, the operating return on revenue (EBT to leasing revenue) decreased by 0.8 percentage points during the first six months to 6.7% (H1 2017: 7.5%)
At the end of the first half of 2018 Sixt Leasing SE repaid the last instalment of EUR 190 million from the EUR 750 million loan (Core Loan) provided by Sixt SE in the course of Sixt Leasing SE's IPO. The repayment was made at the earliest possible time and means that Sixt Leasing's financing structure is now entirely independent from Sixt SE. The funds for the repayment came essentially from the proceeds of the bond issuance of EUR 250 million placed on the capital market in the second quarter for the purpose of repayment and of general Group financing. The bond originated in the newly-launched EUR 1 billion debt issuance programme.
The business performance during the first six months of 2018 was characterised by the introduction of the DRIVE>2021 strategy programme. The name stands for digitalisation, risk management, internationalisation as well as volume and earnings growth until the year 2021. The aim of DRIVE>2021 is to increase the pace of digitalisation, to improve the risk-return profile, to further push ahead with internationalisation and to significantly increase the contract portfolio as well as earnings.
Sixt Leasing already achieved the first successes under this strategy: In the first half of 2018 the company continued to reduce the potential residual value risk from diesel vehicles in the portfolio, as planned. The share of new contracts for diesel vehicles without buyback agreements decreased significantly compared to the fourth quarter 2017, down 13 percentage points to around 21%. In Germany, the share amounted to only 14% in the first half of 2018. In addition, the German portfolio of diesel vehicles with Euro 5 standard or lower without buyback agreement decreased still further and as had been expected, from around 5,600 to around 4,000 vehicles in the period from the end of December 2017 to the end of June 2018.
Based on the performance during the first half of the year, the Managing Board affirms its targets for the full-year 2018.
| Key figures Sixt Leasing-Group | H1 | H1 | Change |
|---|---|---|---|
| in EUR million | 2018 | 2017 | in % |
| Consolidated revenue | 394.3 | 368.7 | 6.9 |
| Operating revenue | 236.1 | 223.6 | 5.6 |
| Sales revenue | 158.2 | 145.1 | 9.0 |
| Earnings before interest, taxes, depreciation and amortisation (EBITDA) | 121.0 | 117.0 | 3.4 |
| Earnings before interest and taxes (EBIT) | 22.9 | 26.3 | -12.8 |
| Earnings before taxes (EBT) | 15.8 | 16.8 | -5.6 |
| Operating return on revenue (%) | 6.7 | 7.5 | -0.8 points |
In the Leasing business unit the contract portfolio amounted to 92,600 contracts at the end of the first half of the year, a decrease of 0.9% compared to the figure recorded at the end of 2017 (31 December 2017: 93,500 contracts). During the second quarter, limited availability of select vehicle models from dealers and manufacturers impacted the new business, above all in the Online Retail business field. Due to the switch to the WLTP-test cycle that will be newly applicable as of 1 September 2018, some manufacturers are currently not offering specific vehicle models as individually configured new cars. As a consequence, some private and commercial customers are postponing their ordering decisions.
In the Fleet Leasing business field the number of contracts decreased by 5.2% to 45,600 contracts from the figure at the end of 2017 (31 December 2017: 48,100 contracts). This drop is essentially due to the strategy of concluding only select contracts for diesel vehicles without a buyback agreement. In the Online Retail business field the contract volume increased to 47,000 contracts in the first half of the year, a plus of 3.6% (31 December 2017: 45,400 contracts). This means that already in the first quarter of 2018 Sixt Leasing managed to expand its forward-looking Online Retail business field to the Group's biggest business field and achieved a key target for fiscal year 2018 early on.
During the first half of 2018 the Leasing business unit increased total revenue over the same period of last year by 8.4% to EUR 345.1 million (H1 2017: EUR 318.2 million). Operating revenue rose by 5.6% to EUR 210.7 million (H1 2017: EUR 199.6 million). The revenue from vehicle sales recorded a significant plus of 13.3% to EUR 134.4 million (H1 2017: EUR 118.7 million).
During the second quarter of 2018 the business unit recorded a revenue gain of 8.6% over the same quarter the year before to EUR 168.0 million (Q2 2017: EUR 154.7 million). The operating revenue rose by 4.6% to EUR 103.5 million (Q2 2017: EUR 99.0 million). Sales revenue increased by 15.6 % to EUR 64.5 million (Q2 2017: EUR 55.8 million).
EBITDA of the Leasing business unit increased during the first half of 2018 over the same period of last year by 3.3% to EUR 118.8 million (H1 2017: EUR 115.0 million). EBT decreased by 8.3% to EUR 13.6 million (H1 2017: EUR 14.9 million). Accordingly, the operating return on revenue (EBT/operating revenue) fell by 0.9 percentage points to 6.5% (H1 2017: 7.4%). For the second quarter it came to 6.4% (Q2 2017: 7.2%).
| Key figures Leasing business unit | H1 | H1 | Change |
|---|---|---|---|
| in EUR million | 2018 | 2017 | in % |
| Total revenue | 345.1 | 318.2 | 8.4 |
| Leasing revenue (finance rate) | 117.2 | 112.9 | 3.8 |
| Other revenue from leasing business | 93.5 | 86.7 | 7.8 |
| Sales revenue | 134.4 | 118.7 | 13.3 |
| Earnings before interest, taxes, depreciation and amortisation (EBITDA) | 118.8 | 115.0 | 3.3 |
| Earnings before interest and taxes (EBIT) | 20.7 | 24.3 | -15.0 |
| Earnings before taxes (EBT) | 13.6 | 14.9 | -8.3 |
| Operating return on revenue (%) | 6.5 | 7.4 | -0.9 points |
For the Fleet Management business unit the number of contracts at the end of the first six months of 2018 amounted to 41,200, which was 4.6% higher than at the end of the preceding year (31 December 2017: 39,400 contracts).
During the first half of 2018 the Fleet Management business unit's total revenue decreased slightly compared to the same period the year before, down by 2.6% to EUR 49.2 million (H1 2017: EUR 50.5 million) The reason for this was a drop in sales revenue, which fell by 10.0% to EUR 23.8 million (H1 2017: EUR 26.4 million). Fleet management revenue, on the other hand, increased by 5.6% to EUR 25.4 million (H1 2017: EUR 24.1 million).
In keeping with the performance of the first half of the year, total revenue for the second quarter fell by 7.8% compared to the corresponding quarter of the year before to EUR 24.3 million (Q2 2017: EUR 26.4 million). This development was also due to lower sales revenue, which decreased by 15.3% to EUR 12.0 million (Q2 2017: EUR 14.2 million). Fleet management revenue, on the other hand, gained slightly, up by 1.1% to EUR 12.3 million (Q2 2017: EUR 12.2 million).
EBITDA for the Fleet Management business unit increased during the first half of 2018 over the same period of last year by 14.1% to EUR 2.3 million (H1 2017: EUR 2.0 million). EBT gained 15.2% to EUR 2.2 million (H1 2017: EUR 1.9 million). The operating return on revenue (EBT to operating revenue) for the first six months improved by 0.7 percentage points to 8.6% (H1 2017: 7.9%) For the second quarter it came to 9.3% (Q2 2017: 9.1%).
| Key figures Fleet Management business unit | H1 | H1 | Change |
|---|---|---|---|
| in EUR million | 2018 | 2017 | in % |
| Total revenue | 49.2 | 50.5 | -2.6 |
| Fleet management revenue | 25.4 | 24.1 | 5.6 |
| Sales revenue | 23.8 | 26.4 | -10.0 |
| Earnings before interest, taxes, depreciation and amortisation (EBITDA) | 2.3 | 2.0 | 14.1 |
| Earnings before interest and taxes (EBIT) | 2.3 | 2.0 | 14.2 |
| Earnings before taxes (EBT) | 2.2 | 1.9 | 15.2 |
| Operating return on revenue (%) | 8.6 | 7.9 | 0.7 points |
Consolidated revenue improved 6.9% during the first half of 2018 to EUR 394.3 million (H1 2017: EUR 368.7 million).
Other operating income rose sharply during the reporting period, up by 73.5 % to EUR 4.6 million (H1 2017: EUR 2.6 million), mainly due to higher income from currency translations and capitalised costs.
Fleet expenses and cost of lease assets increased by 8.3% to EUR 246.3 million (H1 2017: EUR 227.5 million).
Personnel expenses rose by 11.2% to EUR 18.7 million (H1 2017: EUR 16.8 million).
Other operating expenses increased by 27.8% to EUR 12.8 million (H1 2017: EUR 10.0 million). In line with the corresponding position in the other operating income this increase was driven by higher expenses from currency translations. Moreover, consultancy costs and expenses from write-downs of receivables also increased, mainly due to changes in the structure of receivables given the strong growth in the business with private customers.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) went up by 3.4% to EUR 121.0 million (H1 2017: EUR 117.0 million). EUR 60.2 million of this was attributable to the second quarter of 2018 (Q2 2017: EUR 59.5 million; +0.5%).
Depreciation and amortisation increased by 8.2% to EUR 98.1 million compared with the same period the year before due to the significant growth of lease assets. (H1 2017: EUR 90.7 million).
Consolidated earnings before interest and taxes (EBIT) for the first half year amounted to EUR 22.9 million and thus 12.8% less than in the same period of last year (H1 2017: EUR 26.3 million). EUR 11.3 million of this was attributable to the second quarter of 2018 (Q2 2017: EUR 13.3 million; -14.5%).
The Sixt Leasing Group's net finance costs for the first six months improved significantly, gaining 25.4% to EUR -7.1 million (H1 2017: EUR -9.6 million). The reason for this positive development came above all from reduced interest expenses due to the repayment of an instalment from the Core Loan in the amount of EUR 300 million to Sixt SE in in the mid of 2017. This volume was replaced with independent financing instruments carrying lower interest.
For the first six months of 2018 the Group reported a reduction in earnings before taxes (EBT) of 5.6% to EUR 15.8 million (H1 2017: EUR 16.8 million), in particular die to investments in IT and digitalisation as well as costs for the ramp-up in staff necessary in the course of the growth plans. EUR 7.8 million of this was attributable to the second quarter of 2018 (Q2 2017: EUR 8.3 million; -6.0%).
Income taxes for the first six months increased only marginally by 0.5% to EUR 4.3 million (H1 2017: EUR 4.3 million).
Consolidated profit for the first six months decreased by 7.7% to EUR 11.5 million (H1 2017: EUR 12.5 million). Of this EUR 5.6 million was attributable to the second quarter of 2018 (Q2 2017: EUR 6.5 million; -12.9%).
Earnings per share - basic and diluted - for the first six months came to EUR 0.56 (H1 2017: EUR 0.61).
As of 30 June 2018 the Sixt Leasing Group reports a balance sheet total of EUR 1,439.4 million, which is EUR 3.5 million, or 0.2%, less than as of 31 December 2017 (EUR 1,442.8 million).
As of 30 June 2018, the lease assets, which are the dominating item within the non-current assets, increased by EUR 45.8 million, which equals 3.8%, to EUR 1,265.0 million (31 December 2017: EUR 1,219.2 million). All in all, non-current assets climbed by EUR 46.8 million to EUR 1,279.1 million, a gain of 3.8% (31 December 2017: EUR 1,232.4 million).
Compared to end of last year's reporting date, current assets decreased by EUR 50.2 million or 23.9% to EUR 160.2 million (31 December 2017: EUR 210.5 million). This decrease is essentially due to lower other receivables and assets, which fell by 63.4% or EUR 56.3 million down to EUR 32.6 million (31 December 2017: EUR 88.9 million). This development is primarily due to lower delivery claims for vehicles from the leasing fleet.
As of 30 June 2018 Sixt Leasing Group's equity totalled EUR 206.2 million, a gain of EUR 1.1 million, or 0.5%, over the figure as of 31 December 2017 (EUR 205.1 million). The profit of EUR 11.5 million generated in the first half of the year was offset by the dividend payment for fiscal year 2017 that was approved by the Annual General Meeting on 19 June 2018 in the amount of EUR 9.9 million. As a consequence, the equity ratio gained 0.1 percentage points to 14.3% (31 December 2017: 14.2%) and continued to remain above the minimum long-term target of 14.0%.
As of 30 June 2018 the Group reported non-current liabilities and provisions of EUR 875.0 million (31 December 2017: EUR 607.6 million; +44.0%). The non-current financial liabilities increased by EUR 263.5 million as of 30 June 2018 to EUR 850.9 million (31 December 2017: EUR 587.4 million; +44.9%), which was mainly due to the issuance of a bond with a volume of EUR 250 million at the beginning of May 2018. The bond has a term of four years and carries an interest rate coupon of 1.5 percent per year. The bond issuance was part of the newly-issued debt issuance programme, which has a total volume of EUR 1 billion. It enables Sixt Leasing SE to flexibly place further bonds in future and shall support above all the financing of the scheduled growth under the DRIVE>2021 strategy programme.
Current liabilities and provisions as of 30 June 2018 came to EUR 358.2 million (31 December 2017: EUR 630.1 million). The decrease of EUR 271.9 million, or 43.2%, is mainly due to the lower liabilities to related parties, following the EUR 190 million repayment at the end of June of the last instalment of the Core Loan provided by Sixt SE. Moreover, current financial liabilities decreased by EUR 50.8 million, or 18.2%, to EUR 227.7 million (31 December 2017: EUR 278.5 million) because Sixt Leasing reduced the draw-down of bank loans following the placement of the bond. In addition, trade payables also fell by EUR 32.5 million or 32.9% to EUR 66.1 million (31 December 2017: EUR 98.6 million), mainly due to decreased vehicle purchases.
For the first six months of 2018 the Sixt Leasing Group reported a gross cash flow of EUR 114.1 million (H1 2017: EUR 104.2 million; +9.5%). After changes from the disposal of used leasing vehicles and investments in new leasing vehicles, as well as changes in other net assets, the net cash outflow from operating activities amounted to EUR 10.4 million (H1 2017: cash outflow of EUR 58.9 million). The decrease in the cash outflow is mainly due to higher income from the sale of leasing vehicles as well as the positive changes to other net assets.
Net cash used in investing activities amounted to EUR 2.3 million (H1 2017: cash outflow of EUR 1.1 million), essentially due to the investments made in intangible asset and property, plant and equipment.
The net cash inflow from financing activities amounted to EUR 16.6 million for the first six months of 2018 (H1 2017: cash inflow of EUR 63.6 million). The proceeds from the bond issuance are offset by the repayment of the last instalment of the Core Loan to Sixt SE as well as redemption payments for bank loans.
Overall cash and cash equivalents (bank balances) as of 30 June 2018 increased by EUR 2.6 million, or 34.9%, compared to the end of December 2017 following minor changes to foreign currency translations and amounted to EUR 9.9 million (31 December 2017: EUR 7.3 million).
In the first six months of 2018 the Sixt Leasing Group added vehicles with a total value of EUR 280.9 million (H1 2017: EUR 281.3 million) to the leasing fleet.
After the reporting date of 30 June 2018, no significant events that would materially affect the net assets, financial position and results of operations of Sixt Leasing SE and Sixt Leasing Group, have occurred.
In the Online Retail business field Sixt Leasing continues to expect an increase of new orders by 20% compared to the previous year's figure of around 12,000 new contracts, excluding the contracts from the 'flat rate for the road' campaign with Peugeot and 1&1. In the Fleet Leasing business field the Managing Board continues to expect a decrease in new orders in fiscal year 2018 and thus a slightly lower contract portfolio as well as a lower contribution to earnings of the Leasing business unit compared to the year before. In the medium-term until the end of the year 2021, the Company seeks to reach more than 110,000 contracts in the Online Retail business field driven by the tremendous growth opportunities and the further digitalisation. In the Fleet Leasing business field the contract portfolio is expected to amount to around 45,000 contracts.
In the Fleet Management business unit Sixt Leasing continues to expect a slight increase in the contract portfolio for the full-year 2018. During the current fiscal year the focus will be on optimising the IT tools and platforms in order to grow in future with more efficiently scalable systems. With a range of digital services optimally adapted to customers' needs, stronger domestic and international growth is expected to be achieved again in the following years. In the medium-term a contract portfolio of more than 60,000 contracts is expected.
Following the overall positive business development of the Sixt Leasing Group in the first half of the year, the Managing Board is confident about the further course of the current financial year and confirms its forecast for fully-year 2018. Hence, the Board continues to expect a slight increase in the Group's contract portfolio, consolidated operating revenue and EBITDA. The Board also maintains its expectation that EBT will remain at roughly the same level as the previous year. Operating return on revenue is also expected to be in line with the 6% target.
The mid-term targets of the DRIVE>2021 strategy programme are also confirmed. Thus, the Managing Board expects a growth of the Group's contract portfolio until the end of the fiscal year 2021 by at least 60% to more than 220,000 contracts. For consolidated revenue, the Managing Board forecasts a growth of at least a third to more than EUR 1 billion by 2021, whereby operating revenue shall increase disproportionately by 50% to around EUR 700 million. By 2021, EBITDA is expected to increase to around EUR 400 million and EBT to around EUR 50 million. This corresponds to an increase by around two thirds in each case compared to 2017. Thus, the Managing Board expects an operating return on revenue of around 7% in 2021.
The risk and opportunity profile of the Sixt Leasing Group did not change significantly in the first half year of 2018 from the information provided in the Annual Report 2017. The report contains a detailed description of the risk and opportunity profile, the risk management system, as well as the internal control and risk management system relating to its accounting procedures.
Moreover, the Managing Board of Sixt Leasing SE closely monitors the discussion regarding potential driving bans in selected German cities for diesel-powered vehicles with Euro-5 standards and below. As of 30 June 2018, Sixt Leasing SE in Germany held approximately 4,000 diesel-powered vehicles with Euro-5 standard and below which are not covered by buyback agreements. As new dieselpowered cars that do not comply with the Euro-6 standard are no longer registered since the end of 2015, the number of cars with a Euro-5 standard and below continues to fall. The Managing Board expects the number of such cars to fall to around 2,500 by the end of the current year.
Pullach, 14 August 2018
Sixt Leasing SE The Managing Board
| Q2 | H1 | H1 | Consolidated Income Statement |
|---|---|---|---|
| 2018 | 2017 | 2018 | in EUR thou. |
| 192,324 | 368,744 | 394,295 | Revenue |
| 2,472 | 2,629 | 4,561 | Other operating income |
| -118,760 | -227,519 | -246,303 | Fleet expenses and cost of lease assets |
| -9,576 | -16,809 | -18,684 | Personnel expenses |
| -6,262 | -10,031 | -12,819 | Other operating expenses |
| 60,198 | 117,015 | 121,050 | Earnings before interest, taxes, depreciation and amortisation (EBITDA) |
| -48,872 | -90,689 | -98,100 | Depreciation and amortisation expense |
| 11,326 | 26,326 | 22,949 | Earnings before interest and taxes (EBIT) |
| -3,549 | -9,565 | -7,134 | Net finance costs |
| 7,778 | 16,760 | 15,816 | Earnings before taxes (EBT) |
| -2,144 | -4,282 | -4,303 | Income tax expense |
| 5,633 | 12,478 | 11,513 | Consolidated profit |
| 5,633 | 12,478 | 11,513 | Of which attributable to shareholders of Sixt Leasing SE |
| 0.27 | 0.61 | 0.56 | Earnings per share – basic and diluted (in Euro) |
| Consolidated statement of comprehensive income | H1 | H1 |
|---|---|---|
| in EUR thou. | 2018 | 2017 |
| Consolidated profit | 11,513 | 12,478 |
| Other comprehensive income (not recognised in the income statement) | ||
| Thereof components that could be reclassified to income statement in the future | ||
| Currency translation gains/losses | 108 | -178 |
| Derivative financial instruments designated as hedge accounting | -673 | - |
| Total comprehensive income | 10,948 | 12,301 |
| Of which attributable to shareholders of Sixt Leasing SE | 11,621 | 12,301 |
| Assets | ||
|---|---|---|
| in EUR thou. | 30 Jun. 2018 | 31 Dec. 2017 |
| Non-current assets | ||
| Goodwill | 1,748 | 1,746 |
| Intangible assets | 7,791 | 5,943 |
| Equipment | 876 | 797 |
| Lease assets | 1,264,994 | 1,219,209 |
| Financial assets | 84 | 67 |
| Other receivables and assets | 2,456 | 3,240 |
| Deferred tax assets | 1,163 | 1,355 |
| Total non-current assets | 1,279,111 | 1,232,356 |
| Current assets | ||
| Inventories | 34,127 | 29,972 |
| Trade receivables | 73,518 | 77,043 |
| Receivables from related parties | 3,085 | 2,863 |
| Other receivables and assets | 32,569 | 88,882 |
| Income tax receivables | 7,059 | 5,738 |
| Bank balances | 9,885 | 5,970 |
| Total current assets | 160,242 | 210,468 |
| Total assets | 1,439,353 | 1,442,824 |
| Consolidated cash flow statement | H1 | H1 |
|---|---|---|
| in EUR thou. | 2018 | 2017 |
| Operating activities | ||
| Consolidated profit | 11,513 | 12,478 |
| Income taxes recognised in income statement | 710 | 1,295 |
| Income taxes paid | -1,823 | -3,549 |
| Financial result recognised in income statement1 | 7,131 | 9,573 |
| Interest received | 51 | 58 |
| Interest paid2 | -7,583 | -8,853 |
| Depreciation and amortisation | 98,100 | 90,689 |
| Income from disposal of fixed assets | -4,425 | -5,782 |
| Other (non-)cash expenses and income | 10,379 | 8,280 |
| Gross Cash flow | 114,053 | 104,190 |
| Proceeds from disposal of lease assets | 134,419 | 118,672 |
| Payments for investments in lease assets | -280,906 | -281,266 |
| Change in inventories | -4,155 | -2,516 |
| Change in trade receivables | 3,525 | -3,401 |
| Change in trade payables | -32,478 | 16,827 |
| Change in other net assets | 55,147 | -11,400 |
| Net cash flows used in operating activities | -10,394 | -58,894 |
| Investing activities | ||
| Payments for investments in intangible assets and equipment | -2,260 | -1,102 |
| Payments for investments in short-term financial assets | - | -84,998 |
| Proceeds from disposal of short-term financial assets | - | 85,000 |
| Net cash flows used in investing activities | -2,260 | -1,100 |
| Financing activities | ||
| Dividends paid | -9,894 | - |
| Proceeds from bonds, borrower's note loans and bank loans | 353,282 | 409,176 |
| Payments made for redemption of borrower's note loans and bank loans | -77,228 | -112,837 |
| Proceeds from short-term financial liabilities/ | ||
| Payments made for short-term financial liabilities3 | -59,600 | 67,212 |
| Payments made for redemption of financing from related parties | -190,000 | -300,000 |
| Net cash flows from financing activities | 16,560 | 63,551 |
| Net change in cash and cash equivalents | 3,906 | 3,558 |
| Effect of exchange rate changes on cash and cash equivalents | 9 | -9 |
| Cash and cash equivalents at 1 Jan. | 5,970 | 3,778 |
| Cash and cash equivalents at 30 Jun. | 9,885 | 7,326 |
1 Excluding income from investments
2 Including interest paid for loans from related parties
3 Short-term borrowings with a maturity period of up to three months and quick turnover
| Consolidated statement of changes in equity in EUR thou. |
Subscribed capital | Capital reserves | Other reserves | Equity attributable to shareholders of Sixt Leasing SE |
Minority interests | Total equity |
|---|---|---|---|---|---|---|
| 31 Dec. 2017 | 20,612 | 135,045 | 49,444 | 205,101 | 31 | 205,132 |
| Effects under IFRS 9 | - | - | 20 | 20 | - | 20 |
| 1 Jan. 2018 | 20,612 | 135,045 | 49,464 | 205,120 | 31 | 205,151 |
| Consolidated profit | - | - | 11,513 | 11,513 | - | 11,513 |
| Other comprehensive income | - | - | 108 | 108 | -673 | -564 |
| Dividend payments | - | - | -9,894 | -9,894 | - | -9,894 |
| 30 Jun. 2018 | 20,612 | 135,045 | 51,191 | 206,848 | -642 | 206,206 |
| 1 Jan. 2017 | 20,612 | 135,045 | 39,012 | 194,668 | 31 | 194,699 |
| Consolidated profit | - | - | 12,478 | 12,478 | - | 12,478 |
| Other comprehensive income | - | - | -178 | -178 | - | -178 |
| Dividend payments | - | - | -9,894 | -9,894 | - | -9,894 |
| 30 Jun. 2017 | 20,612 | 135,045 | 41,419 | 197,075 | 31 | 197,106 |
Sixt Leasing SE, Pullach, is an European Stock Corporation (Societas Europea) and the parent company of the Sixt Leasing Group. The Company's registered office is at Zugspitzstrasse 1, 82049 Pullach/Germany and it is registered in the Commercial Register of Munich Local Court under docket number HRB 227195. The Company has been established for an indefinite period.
The consolidated financial statements of Sixt Leasing SE as at 31 December 2017 were prepared in accordance with International Financial Reporting Standards (IFRS), as adopted by the EU and effective at that date.
The interim consolidated financial statements as at 30 June 2018 have been prepared in accordance with International Accounting Standard (IAS) 34 (Interim Financial Reporting). The accounting policies adopted in the preparation of the interim consolidated financial statements are consistent with those used in the preparation of the 2017 consolidated financial statements. The effects of new accounting standards to be applied are explained in more detail in the following chapters.
In accordance with IAS 34 "Interim Financial Reporting" the interim financial report includes a consolidated income statement and statement of comprehensive income, a consolidated balance sheet, a consolidated cash flow statement, a consolidated statement of changes in equity and these condensed notes. The interim financial statements do not disclose all the information and disclosures required in the annual financial statements, and should be read in conjunction with the 2017 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 Annual Report 2017. In addition, the following accounting method has been implemented within the fiscal year 2018.
The Group designates individual derivatives as hedging instruments as part of cash flow hedges. Details of the underlying and hedging transactions as well as the hedging relationship are documented at the beginning of hedge accounting. Furthermore, both when the hedging relationship is entered into and in the course of the hedging relationship, it is regularly documented whether the hedging instrument designated in the hedging relationship is highly effective in offsetting the changes in the cash flows of the underlying transaction in accordance with the hedged risk.
The effective portion of the change in the fair value of derivatives that are suitable for cash flow hedges and have been designated as such is recognized directly in other comprehensive income under the item derivative financial instruments designated as hedge accounting. The profit or loss attributable to the ineffective portion is recognized immediately in profit or loss and reported in the net finance costs in the income statement. Amounts recognized in other comprehensive income are transferred to the income statement in the period in which the underlying transaction also affects income. They are shown in the income statement in the same item in which the underlying transaction is shown. Hedge accounting ends when the Group terminates the hedging relationship, the hedging instrument expires, is sold, terminated or exercised or is no longer suitable for hedging purposes. The full gain or loss recognized in other comprehensive income and accumulated in equity at that date remains in equity and is not recognized in income until the expected transaction is also recognized in the income statement. If the expected transaction is no longer expected to occur, the entire income recognized in equity is immediately transferred to the income statement.
The results presented in the interim financial reports do not necessarily indicate the results of future reporting periods or of the full financial year.
The interim consolidated financial statements were prepared and published in euros.
The accompanying interim consolidated financial statements as of 30 June 2018 have not been audited or reviewed by the Company's and the Group's auditor, Deloitte GmbH Wirtschaftsprüfungsgesellschaft, Munich.
Due to rounding it is possible that individual figures presented in the interim financial statements may not add up exactly to the totals shown and half-year figures listed may not follow from adding up the individual quarterly figures. Furthermore, the percentage figures presented may not exactly reflect the absolute figures they relate to.
The development so far does not reveal any implications, that the Sixt Leasing Group underlies seasonal effects with fundamental fluctuations.
The following new or revised accounting standards have been issued by the International Accounting Standard Board (IASB). These have not been applied in the interim financial statements as of and for the period ended 30 June 2018, as their application is not yet mandatory or they have not been yet endorsed by the European Commission.
| Standard/ Interpretation | Adoption by | Applicable as at | |
|---|---|---|---|
| European | |||
| Commission | |||
| IFRS 14 | Regulatory deferral accounts | No | 1 Jan. 2016 |
| IFRS 16 | Leases | Yes | 1 Jan. 2019 |
| IFRS 17 | Insurance Contracts | No | 1 Jan. 2021 |
| Amendments to IFRS 10 and IAS 28 | Sale or contribution of assets between an investor and its associate or joint venture | No | Deferred indefinitely |
| Amendments to IAS 19 | Plan amendment, curtailment or settlement | No | 1 Jan. 2019 |
| Amendments to IAS 28 | Long-term interests in associates and joint ventures | No | 1 Jan. 2019 |
| IFRIC Interpretation 23 | Uncertainty over income tax treatments | No | 1 Jan. 2019 |
| Annual improvements to IFRS Standards 2015-2017 Cycle | No | 1 Jan. 2018 |
The Company has applied IFRS 15 Revenue from contracts with customers since 1 January 2018 on the basis of the modified retrospective method. IFRS 15 determines the realization of the amount and timing of revenues from contracts with customers.
The Group generates lease income from contractually agreed leasing instalments. These do not fall within the scope of IFRS 15, but continue to be accounted for in accordance with IAS 17. In addition, the Group generates revenue from contractual service components and sales revenue from used lease vehicles. Service components include services such as online configuration, vehicle maintenance, repairs, fuel, breakdowns and damage assistance or management of fuel cards. Under a contractual agreement, individual service components can form an independent service commitment or several service components can form a joint service commitment as a bundle of services. The corresponding revenues are recognized upon fulfillment of the performance obligation and if the amount of the revenues can be reliably determined on the basis of time period or date.
The first-time application of IFRS 15 as of 1 January 2018 did not have any impact on the net assets, financial position and results of operations of the Group, as the previous procedures are already in line with the new regulations..
The Company has also applied IFRS 9 Financial Instruments since 1 January 2018 on the basis of the modified retrospective method. The new standard includes requirements for the classification and measurement of financial instruments as well as new regulations for hedge accounting and introduces an impairment model for financial assets based on expected credit losses. The Group applies the simplified impairment model for trade and finance lease receivables, according to which a provision for losses on all instruments, irrespective of their credit quality, must be recognized over the remaining term. In addition, the company measures its financial assets for the first time at fair value in accordance with IFRS 9. This initial application effect was recognized directly in equity, taking deferred taxes into account. Changes in fair value of financial assets in the following periods are recognized in the consolidated income statement.
In principle, the first-time application of IFRS 9 had no material impact on the net assets, financial position and results of operations of the Group. With regard to the amended mandatory disclosures, please refer to the explanatory notes to the consolidated financial statements.
The following table shows the effects of the first-time application of IFRS 9 on the opening balance sheet as of 1 January 2018:
| Assets | |||
|---|---|---|---|
| in EUR thou. | 31 Dec 2017 | Effects under IFRS 9 | 1 Jan. 2018 |
| Non-current assets | |||
| Financial assets | 67 | 20 | 87 |
| Passiva | |||
| in EUR thou. | 31 Dec 2017 | Effects under IFRS | 1 Jan. 2018 |
| Eigenkapital | |||
| Übriges Eigenkapital | 49,444 | 20 | 49,464 |
Since 31 December 2017, there have been no changes in the scope of consolidation of Sixt Leasing Group.
Revenues of the Leasing Business Unit comprise lease income from contractually agreed leasing instalments and other income from leasing business, such as income from service components such as repairs, fuels, tyres, etc., income from claims settlements and franchise fees. In addition, the Leasing Business Unit reports sales revenues for used leasing assets under sales revenues generated from the self-marketing of leased assets.
In the Fleet Management Business Unit, fleet management revenues comprise revenues for service components, contractually agreed service fees and revenues from claims settlements. In addition, the Fleet Management Business Unit reports revenues from the sale of used customer vehicles.
Revenue is broken down as follows:
| H1 | H1 | Change | Q2 | Q2 | Change |
|---|---|---|---|---|---|
| 2018 | 2017 | in % | 2018 | 2017 | in % |
| 117,155 | 112,856 | 3.8 | 58,894 | 56,124 | 4.9 |
| 93,496 | 86,703 | 7.8 | 44,561 | 42,827 | 4.0 |
| 134,419 | 118,672 | 13.3 | 64,547 | 55,764 | 15.7 |
| 345,070 | 318,231 | 8.4 | 168,002 | 154,715 | 8.6 |
| 25,442 | 24,085 | 5.6 | 12,298 | 12,169 | 1.1 |
| 23,783 | 26,429 | -10.0 | 12,024 | 14,199 | -15.3 |
| 49,225 | 50,514 | -2.6 | 24,322 | 26,368 | -7.8 |
| 394,295 | 368,744 | 6.9 | 192,324 | 181,083 | 6.2 |
Operating revenue (leasing revenue (finance rate), other revenue from leasing business and fleet management revenue, excluding sales revenue) increased in the reporting period by 5.6 % to EUR 236.1 million (H1 2017: EUR 223.6 million).
Fleet expenses and cost of lease assets are broken down as follows:
| H1 | H1 | Change |
|---|---|---|
| 2018 | 2017 | in % |
| -153,458 | -138,613 | 10.7 |
| -3,056 | -2,826 | 8.1 |
| -35,478 | -34,682 | 2.3 |
| -34,379 | -33,639 | 2.2 |
| -4,427 | -4,839 | -8.5 |
| -3,042 | -2,537 | 19.9 |
| -1,928 | -1,623 | 18.8 |
| -2,991 | -1,963 | 52.4 |
| -1,559 | -1,489 | 4.7 |
| -834 | -816 | 2.2 |
| -1,433 | -1,309 | 9.5 |
| -3,718 | -3,183 | 16.8 |
| -246,303 | -227,519 | 8.3 |
Other operating expenses are broken down as follows:
| H1 2018 |
H1 | Change |
|---|---|---|
| 2017 | in % | |
| -880 | -762 | 15.5 |
| -1,963 | -1,821 | 7.8 |
| -1,899 | -469 | >100 |
| -1,602 | -974 | 64.4 |
| -1,547 | -1,808 | -14.5 |
| -1,396 | -1,568 | -11.0 |
| -3,532 | -2,628 | 34.4 |
| -12,819 | -10,031 | 27.8 |
Depreciation and amortisation expenses are explained in more detail below:
| Depreciation and amortisation | H1 | H1 | Change |
|---|---|---|---|
| in EUR thou. | 2018 | 2017 | in % |
| Lease assets | -97,767 | -90,342 | 8.2 |
| Equipment | -115 | -86 | 32.8 |
| Intangible assets | -219 | -261 | -16.2 |
| Group total | -98,100 | -90,689 | 8.2 |
Net finance costs are broken down as follows:
| Net finance costs | H1 | H1 |
|---|---|---|
| in EUR thou. | 2018 | 2017 |
| Other interest and similar income | 184 | 124 |
| Other interest and similar income from related parties | 4 | 6 |
| Interest and similar expenses | -4,050 | -2,655 |
| Interest and similar expenses for related parties | -2,866 | -7,378 |
| Other net financial income/loss | -405 | 338 |
| Group total | -7,134 | -9,565 |
The income tax expense comprises current income taxes amounting to EUR 0.7 million (H1 2017: EUR 1.3 million) as well as deferred taxes of EUR 3.6 million (H1 2017: EUR 3.0 million). Based on the Group's earnings before taxes (EBT), the Group's tax rate in the reporting period is -27% (H1 2017: -26%).
Earnings per share are broken down as follows:
| Earnings per share | H1 | H1 | |
|---|---|---|---|
| 2018 | 2017 | ||
| Consolidated profit | in EUR thou. | 11,513 | 12,478 |
| Profit attributable to shareholders of Sixt Leasing SE | in EUR thou. | 11,513 | 12,478 |
| Weighted average number of shares | 20,611,593 | 20,611,593 | |
| Earnings per share – basic and diluted | in EUR | 0.56 | 0.61 |
The weighted average number of shares is calculated based on the proportional number of shares per month, eventually adjusted by the respective number of treasury shares. Earnings per share are calculated by dividing the profit attributable to shareholders of Sixt Leasing SE through the weighted average number of ordinary shares outstanding. Financial instruments, that could lead to a dilutive effect, do not exist at the reporting date.
Lease assets increased by EUR 45.8 million to EUR 1,265.0 million as at the reporting date (31 December 2017: EUR 1,219.2 million).
Current other receivables and assets falling due within one year can be broken down as follows:
| Current other receivables and assets | ||
|---|---|---|
| in EUR thou. | 30 Jun. 2018 | 31 Dec. 2017 |
| Financial other receivables and assets | ||
| Finance lease receivables | 1,975 | 1,682 |
| Miscellaneous assets | 10,125 | 10,070 |
| Non-financial other receivables and assets | ||
| Other tax receivables | 446 | 8,658 |
| Insurance claims | 10,537 | 8,782 |
| Deferred income | 5,723 | 5,140 |
| Claims for vehicle deliveries | 3,763 | 54,550 |
| Group total | 32,569 | 88,882 |
The subscribed capital of Sixt Leasing SE as at 30 June 2018 remained unchanged at EUR 20,611,593, divided up into 20,611,593 ordinary bearer shares (31 December 2017: EUR 20,611,593). The shares are no-par value shares with a nominal value of EUR 1 per share.
By resolution of the Annual General Meeting of 1 June 2016, the Managing Board was authorised, as specified in the proposed resolution, to increase the share capital on one or more occasions in the period up to and including 31 May 2021, with the consent of the Supervisory Board, by a total of EUR 6,183,477, by issuing new no-par value bearer shares in exchange for cash and/or non-cash contributions, whereby the shareholders' pre-emptive rights may be excluded under certain conditions (Authorised Capital 2016).
By resolution of the Annual General Meeting of 1 June 2016, the Managing Board is authorised, on one or more occasions in the period up to and including 31 May 2021 and with the consent of the Supervisory Board, to issue convertible and/or bonds with warrants registered in the name of the holder and/or bearer of up to a maximum of EUR 200,000,000 with a fixed or open-ended term and grant conversion or option rights to the holders and/or creditors of convertible bonds to acquire a total of up to 4,122,318 new ordinary bearer shares in Sixt Leasing SE.
By resolution of the Annual General Meeting of 1 June 2016, the company's share capital is conditionally increased by up to EUR 4,122,318 (Conditional Capital 2016). The conditional capital increase serves to grant shares to holders or creditors of convertible bonds and holders of options rights from bonds with warrants, as long as the conversion or option rights from the aforementioned bonds are actually exercised or the conversion obligations from such bonds are fulfilled and no other forms of settlement are used.
By resolution of the Annual General Meeting of 29 June 2017 the Managing Board was authorised, as specified in the proposed resolution, to issue until the 28 June 2020 up to 1,000,000 subscription rights for up to a maximum of 1,000,000 no-par value bearer shares, in one or multiple tranches, to members of the Managing Board and executives underneath the Managing Board level as well as members of the governing boards of dependent companies. In so far as this affects Managing Board members, only the Supervisory Board shall be authorized accordingly.
In this context the Company's share capital is conditionally increased by up to EUR 1,000,000 through issuance of up to 1,000,000 new no-par value bearer shares (Conditional Capital 2017). The conditional capital increase serves to service the stock option programme 2017 and only in so far, as subscription rights are issued under the stock option programme 2017 and the owners of the subscription rights use their exercise right.
By resolution of the Annual General Meeting of 8 April 2015 the Managing Board, with the consent of the Supervisory Board, was authorised, as specified in the proposed resolution, to purchase the Company's own shares through 7 April 2020, up to a total of 10% of the Company's share capital at the time of the adoption or, if the respective amount is lower, of the utilisation of this authorisation. This authorisation has not yet been exercised as of the reporting date.
The non-current financial liabilities have residual terms of more than one year and are broken down as follows:
| Non-current financial liabilities | Residual term of 1 to 5 years 30 Jun. 2018 31 Dec. 2017 |
Residual term of more than 5 years | |||
|---|---|---|---|---|---|
| in EUR thou. | 30 Jun. 2018 | ||||
| Borrower's note loans | 29,885 | 29,857 | - | - | |
| Bonds | 494,699 | 247,516 | - | - | |
| Liabilities to banks | 315,787 | 298,672 | - | - | |
| Finance lease liabilities | 10,491 | 11,317 | - | - | |
| Group total | 850,862 | 587,363 | - | - |
In May 2018, Sixt Leasing SE issued a bond with a volume of EUR 250 million on the capital market. The bond has a term of four years and an interest rate coupon of 1.5 percent per year and is divided into units with a nominal value of EUR 1,000. The issue represents the first bond under a newly launched EUR 1 billion debt issuance programme, which enables Sixt Leasing SE to issue further bonds flexible in the future.
The proceeds from the issuance were mainly used to redeem the last instalment of the core facility of EUR 190 million provided by Sixt SE at the end of June 2018 as planned.
Current financial liabilities are due within one year and are broken down as follows:
| Current financial liabilities | ||
|---|---|---|
| in EUR thou. | 30 Jun. 2018 | 31 Dec. 2017 |
| Liabilities to banks | 223,903 | 273,142 |
| Finance lease liabilities | 1,819 | 2,415 |
| Other liabilities | 2,011 | 2,964 |
| Group total | 227,733 | 278,520 |
Current other liabilities are broken down as follows:
| Current other liabilities | ||
|---|---|---|
| in EUR thou. | 30 Jun. 2018 | 31 Dec. 2017 |
| Financial other liabilities | ||
| Payroll liabilities | 119 | 102 |
| Miscellaneous liabilities | 13,321 | 11,933 |
| Non-financial other liabilities | ||
| Deferred income | 42,083 | 41,595 |
| Tax liabilities | 1,460 | 1,848 |
| Group total | 56,983 | 55,478 |
The following table reconciles the measurement categories of IAS 39 as of 31 December 2017 in accordance with IFRS 9 as of 1 January 2018:
| Financial instruments | IAS 39 | IFRS 9 | Carrying amount | Effect on equity | |
|---|---|---|---|---|---|
| measurement | measurement | IAS 39 | IFRS 9 | ||
| in EUR thou. | category | category | 31 Dec. 2017 | 1 Jan. 2018 | |
| Non-current assets | |||||
| Financial assets | AfS | FVTPL | 67 | 87 | 20 |
| Finance lease receivables | IAS 17 | IAS 17 | 2,743 | 2,743 | - |
| Interest rate derivatives | FAHfT | hedge accounting | 399 | 399 | - |
| Other receivables | LaR | AC | 98 | 98 | - |
| Total | 3,307 | 3,327 | 20 | ||
| Current assets | |||||
| Finance lease receivables | IAS 17 | IAS 17 | 1,682 | 1,682 | - |
| Trade receivables | LaR | AC | 77,043 | 77,043 | - |
| Receivables from related parties | LaR | AC | 2,863 | 2,863 | - |
| Other receivables | LaR | AC | 10,070 | 10,070 | - |
| Total | 91,658 | 91,658 | - | ||
| Non-current liabilities | |||||
| Borrower's note loans | FLAC | AC | 29,857 | 29,857 | - |
| Bonds | FLAC | AC | 247,516 | 247,516 | - |
| Liabilities to banks | FLAC | AC | 298,672 | 298,672 | - |
| Finance lease liabilities | IAS 17 | IAS 17 | 11,317 | 11,317 | - |
| Other liabilities | FLAC | AC | 103 | 103 | - |
| Total | 587,466 | 587,466 | - | ||
| Current liabilities | |||||
| Liabilities to banks | FLAC | AC | 273,142 | 273,142 | - |
| Finance lease liabilities | IAS 17 | IAS 17 | 2,415 | 2,415 | - |
| Liabilities to related parties | FLAC | AC | 193,901 | 193,901 | - |
| Currency derivatives | FAHfT | FVTPL | 103 | 103 | - |
| Other financial liabilities | FLAC | AC | 2,964 | 2,964 | - |
| Trade payables | FLAC | AC | 98,623 | 98,623 | - |
| Financial other liabilities | FLAC | AC | 11,933 | 11,933 | - |
| Total | 583,080 | 583,080 | - |
The following table shows the carrying amounts and fair values of the individual financial assets and liabilities for each individual category of financial instruments. The fair values of financial assets and liabilities that are not regularly measured at fair value but for which the fair value is to be disclosed are assigned to the measurement levels of the fair value hierarchy in the following table.
In the table below, financial instruments are classified into three levels depending on the measurement basis. Level 1 measurements are based on prices quoted in active markets. Level 2 measurements are based on parameters other than quoted prices that are observable either directly as prices or are indirectly derived from prices. Level 3 measurements are based on models that use parameters that are not based on observable market data, but rather on assumptions. This applies in particular to the accounting treatment of financial assets that are not actively traded. These assets are measured on the basis of the financial information available on the balance sheet date.
Due to factors that change in the course of time, the reported fair values can only be regarded as indicative of the values actually realisable on the market. The fair values of the financial instruments were calculated based on the market data available at the balance sheet date and methods and assumptions described below.
For all current financial instruments, it was assumed that the carrying amount (amortised cost) is a reasonable approximation of fair value, unless not specified otherwise in the table. The fair values of the finance lease receivables reported as non-current assets and the borrower's note loans, bonds, liabilities to banks and finance lease liabilities reported as non-current liabilities were calculated as the present values of the future expected cash flows. Standard market interest rates between 0.4% p.a. and 1.8% p.a. (2017: between 0.3% p.a. and 1.6% p.a.) were used for discounting based on the respective maturities.
Finance lease receivables and liabilities are measured in accordance with IAS 17. Financial assets whose cash flows comprise repayments and interest are allocated to the AC category and are measured at amortised cost.
The fair value of derivative financial instruments is determined on the basis of valuations of current market parameters of external financial service providers.
The change in the carrying amounts and fair values of Level 3 valuations of financial assets results from valuation effects in the period.
No reclassifications within the levels of the valuation hierarchies took place in the reporting period.
In addition, as of 1 January 2018, the Company introduced hedge accounting for certain interest rate derivatives, which are reported under non-current other receivables and assets. The Company uses these financial instruments to hedge the cash flows from variable interest liabilities under the Asset Backed Securities programme. If the requirements for hedge accounting are met, these interest rate derivatives are classified to the hedge accounting category. The carrying amount of the hedged underlying transaction amounted to EUR 459.3 million as of 30 June 2018 and is included in financial liabilities. Changes in the fair value of derivatives designated as hedging instruments are recognised directly in other comprehensive income under the item derivative financial instruments in hedge accounting, taking tax effects into account. Ineffective changes in the fair value of derivatives in the amount of EUR 0.1 million, which are designated as hedging instruments, were recognized in the net finance costs in the income statement.
Carrying amounts and fair values by measurement category in accordance with IFRS 9:
| Financial instruments | IFRS 9 | Measurement basis | Carrying amount | Fair value | ||
|---|---|---|---|---|---|---|
| in EUR thou. | measurement category |
for fair value | 30 Jun. 2018 | 1 Jan. 2018 | 30 Jun. 2018 | 1 Jan. 2018 |
| Non-current assets | ||||||
| Financial assets | FVTPL | Level 3 | 84 | 87 | 84 | 87 |
| Finance lease receivables | IAS 17 | 2,318 | 2,743 | 2,398 | 2,833 | |
| Interest rate derivatives | FVTPL | Level 2 | 11 | - | 11 | - |
| Interest rate derivatives | hedge accounting | Level 2 | - | 399 | - | 399 |
| Other receivables | AC | 127 | 98 | |||
| Total | 2,540 | 3,327 | 2,493 | 3,319 | ||
| Current assets | ||||||
| Finance lease receivables | IAS 17 | 1,975 | 1,682 | 2,054 | 1,748 | |
| Currency derivatives | FVTPL | Level 2 | 2 | - | 2 | - |
| Trade receivables | AC | 73,518 | 77,043 | |||
| Receivables from related parties | AC | 3,085 | 2,863 | |||
| Other receivables | AC | 10,123 | 10,070 | |||
| Total | 88,702 | 91,658 | 2,056 | 1,748 | ||
| Non-current liabilities | ||||||
| Borrower's note loans | AC | Level 2 | 29,885 | 29,857 | 30,236 | 30,463 |
| Bonds | AC | Level 2 | 494,699 | 247,516 | 505,731 | 255,592 |
| Liabilities to banks | AC | Level 2 | 315,787 | 298,672 | 311,275 | 296,435 |
| Finance lease liabilities | IAS 17 | 10,491 | 11,317 | 10,606 | 11,429 | |
| Interest rate derivatives | hedge accounting | Level 2 | 387 | - | 387 | - |
| Other liabilities | AC | 172 | 103 | |||
| Total | 851,422 | 587,466 | 858,235 | 593,919 | ||
| Current liabilities | ||||||
| Liabilities to banks | AC | Level 2 | 223,903 | 273,142 | 225,232 | 274,952 |
| Finance lease liabilities | IAS 17 | 1,819 | 2,415 | 1,784 | 2,432 | |
| Liabilities to related parties | AC | Level 2 | 2,677 | 193,901 | 2,677 | 196,701 |
| Currency derivatives | FVTPL | Level 2 | - | 103 | - | 103 |
| Other financial liabilities | AC | 2,011 | 2,964 | |||
| Trade payables | AC | 66,145 | 98,623 | |||
| Financial other liabilities | AC | 13,440 | 11,933 | |||
| Total | 309,994 | 583,080 | 229,693 | 474,188 |
The Sixt Leasing Group is active in the two main business units Leasing and Fleet Management. When combined, the revenue from these activities – excluding vehicle sales revenue – is also described as "operating revenue".
The segment information for the first six months of 2018 (compared with the first six months of 2017) is as follows:
| Group | |||||||
|---|---|---|---|---|---|---|---|
| 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 |
| 345.1 | 318.2 | 49.2 | 50.5 | - | - | 394.3 | 368.7 |
| -0.1 | 0.0 | 0.1 | 0.1 | -0.0 | -0.1 | - | - |
| 345.0 | 318.2 | 49.3 | 50.6 | -0.0 | -0.1 | 394.3 | 368.7 |
| 201.8 | 181.6 | 44.5 | 46.1 | -0.0 | -0.1 | 246.3 | 227.5 |
| 118.8 | 115.0 | 2.3 | 2.0 | - | - | 121.0 | 117.0 |
| 98.1 | 90.7 | 0.0 | 0.0 | - | - | 98.1 | 90.7 |
| 20.7 | 24.3 | 2.3 | 2.0 | - | - | 22.9 | 26.3 |
| -7.0 | -9.5 | -0.1 | -0.1 | - | - | -7.1 | -9.6 |
| 13.6 | 14.9 | 2.2 | 1.9 | - | - | 15.8 | 16.8 |
| 283.2 | 282.4 | 0.0 | 0.0 | - | - | 283.2 | 282.4 |
| 1,412.6 | 1,242.1 | 19.8 | 23.0 | -1.3 | -2.7 | 1,431.1 | 1,262.4 |
| 1,194.2 | 1,037.1 | 16.3 | 20.3 | -1.0 | -2.6 | 1,209.5 | 1,054.9 |
| Leasing | Fleet Management | Reconciliation |
1 Corresponds to Earnings before interest, taxes, depreciation and amortisation (EBITDA)
2 Corresponds to earnings before interest and taxes (EBIT)
3 Corresponds to earnings before taxes (EBT)
| By region | Germany | International | Reconciliation | Group | |||||
|---|---|---|---|---|---|---|---|---|---|
| in EUR million | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |
| Total revenue | 356.8 | 322.8 | 37.5 | 45.9 | - | - | 394.3 | 368.7 | |
| Investments | 265.1 | 259.7 | 18.0 | 22.7 | - | - | 283.2 | 282.4 | |
| Assets | 1,457.4 | 1,268.2 | 621.9 | 457.7 | -648.2 | -463.6 | 1,431.1 | 1,262.4 |
In June 2018, Sixt Leasing SE repaid the last instalment of the core facility of EUR 190 million provided by Sixt SE as planned.
After the reporting date of 30 June 2018, no significant events that would materially affect the net assets, financial position and results of operations of the Sixt Leasing Group, have occurred.
Responsibility statement in accordance with section 115 (2) of the Wertpapierhandelsgesetz (WpHG – German Securities Trading Act) in conjunction with section 264 (2) and section 289 (1) of the Handelsgesetzbuch (HGB– German Commercial Code)
"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, 14 August 2018
Sixt Leasing SE The Managing Board Contact Sixt Leasing SE Zugspitzstrasse 1 82049 Pullach, Germany
[email protected] Phone +49 (0) 89/7 44 44 - 4518 Fax +49 (0) 89/7 44 44 - 84518
Website Investor Relations http://ir.sixt-leasing.com Other websites http://www.sixt-leasing.com
Issued by Sixt Leasing SE Zugspitzstrasse 1 82049 Pullach, Germany
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