Quarterly Report • May 15, 2014
Quarterly Report
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| 1. | Interim Report of the Group 2 | |
|---|---|---|
| 1.1 | Business Model of the Group2 | |
| 1.1.1 General Disclosures2 |
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| 1.1.2 Vehicle Rental Business Unit 2 |
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| 1.1.3 Leasing Business Unit2 |
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| 1.2 | Business Report 3 | |
| 1.2.1 General Developments in the Group 3 |
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| 1.2.2 Vehicle Rental Business Unit 4 |
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| 1.2.3 Leasing Business Unit6 |
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| 1.2.4 Earnings Development7 |
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| 1.2.5 Net Assets 8 |
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| 1.2.6 Financial Position9 |
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| 1.2.7 Liquidity Position9 |
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| 1.2.8 Investments 10 |
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| 1.3 | Events Subsequent to Reporting Date 10 | |
| 1.4 | Report on Outlook10 | |
| 1.5 | Report on Risks and Opportunities11 | |
| 1.6 | Sixt Shares11 | |
| 2. | Interim Consolidated Financial Statements as at 31 March 201412 | |
| 2.1 | Consolidated Income Statement and Statement of Comprehensive Income 12 | |
| 2.2 | Consolidated Balance Sheet13 | |
| 2.3 | Consolidated Cash Flow Statement 14 | |
| 2.4 | Consolidated Statement of Changes in Equity15 | |
| 3. | Other Information about the Group (Notes)16 | |
| 3.1 | General Disclosures 16 | |
| 3.2 | Consolidated Companies16 | |
| 3.3 | Explanations of Selected Items of the Consolidated Income Statement17 | |
| 3.4 | Explanations of Selected Items of the Consolidated Balance Sheet19 | |
| 3.5 | Group Segment Reporting 22 | |
| 3.6 | Explanations on the Consolidated Cash Flow Statement23 | |
| 3.7 | Contingent Liabilities23 | |
| 3.8 | Related Party Disclosures23 |
Sixt SE domiciled in Zugspitzstrasse 1, 82049 Pullach, Germany, is registered in section B of the commercial register at the Munich Local Court, under the number 206738. The Company was formed in 1986 as a result of a reorganisation of "Sixt Autovermietung GmbH", established in 1979, and has traded since then as "Sixt Aktiengesellschaft", which in 2013 was transferred into "Sixt SE". The Company floated on the stock market in 1986. It has registered branches in Leipzig and at Munich airport. The Company has been established for an indefinite period.
At the reporting date, the Company's subscribed capital amounted to EUR 123,029,212.16. Both ordinary shares and non-voting preference shares have been issued, both categories as no-par value shares with a notional amount of EUR 2.56 per share. All shares have been fully paid up. The largest shareholder is Erich Sixt Vermögensverwaltung GmbH, Pullach, which holds 60.1% of the ordinary shares and voting rights of the subscribed capital as at reporting date. Erich Sixt Vermögensverwaltung GmbH, Pullach, is the parent of Sixt SE, Pullach, and the ultimate Group parent.
Sixt is represented through its subsidiaries in the core European countries of Germany, France, Spain, the UK, the Netherlands, Austria, Switzerland, Belgium, Luxembourg, and Monaco (Sixt-Corporate countries) and thus covers the largest part of the European market, making it one of the continent's leading vehicle rental companies. Sixt also operates a subsidiary on the US rental market. In many other European and non-European countries, Sixt is additionally represented by franchise and cooperation partners (Sixt-Franchise countries).
Sixt is one of the largest non-bank, vendor-neutral leasing companies in Germany and additionally operates subsidiaries in France, Austria, Switzerland and the Netherlands. The focus of business activities is on fleet management and full-service leasing for corporate and business clients. This covers a wealth of further services alongside the classic finance function. Sixt develops and realises bespoke mobility concepts that allow customers to bring their fleet costs down over the long term. Leasing services offered to private customers are becoming an increasing important additional segment.
Consolidated operating revenue from rental and leasing activities (excluding revenue from the sale of used leasing vehicles) came to EUR 352.6 million in the first three months of the current year, a gain of 7.7% over the same period last year (EUR 327.4 million). Due to the continued expansion outside of Germany the share of foreign business increased year-on-year to 31.5% (Q1 2013: 29.9%).
Sixt registered an increase in rental revenue (not including other revenue from rental business) of 9.5% in the first quarter to EUR 230.1 million (Q1 2013: EUR 210.1 million) with growth recorded both at home and abroad. A more friendly business climate by comparison to the same quarter last year meant that in Germany demand was up in all customer groups, especially among commercial and business customers. As a consequence, domestic rental revenue was up 6.7% to EUR 142.0 million (Q1 2013: EUR 133.0 million). Growth outside of Germany came to 14.4%, totalling EUR 88.1 million (Q1 2013: EUR 77.1 million). This was borne out not only by the European Sixt-Corporate countries but increasingly also by the rental business in the USA.
Other revenue from the rental business amounted to EUR 21.8 million after three months, some 2.8% higher than the figure recorded for the corresponding period last year (EUR 21.2 million).
The Leasing Business Unit achieved a 4.8% increase in leasing revenue to EUR 100.7 million (Q1 2013: EUR 96.1 million). This revenue growth reflects last year's expansion of the leasing contracts portfolio.
Revenue from the sale of used leasing vehicles, which to some extent is subject to stronger fluctuations, because of reporting date effects for example, came to EUR 28.7 million after three months (Q1 2013: EUR 38.2 million; -24.9%).
Sixt Group's total consolidated revenue for the first quarter amounted to EUR 382.6 million, equalling an increase of 4.3% (Q1 2013: EUR 366.9 million).
Consolidated earnings before interest and taxes (EBIT) rose by 11.6% to EUR 36.7 million compared to EUR 32.9 million in the first three months last year.
Consolidated earnings before taxes (EBT), the Sixt Group's principal earnings indicator, improved by 19.5% to EUR 26.6 million (Q1 2013: EUR 22.3 million). As in the same period last year, this result includes start-up costs for strategic growth initiatives, such as the expansion in the USA or the carsharing joint venture DriveNow.
After taxes and minority interests, the Group records a profit of EUR 18.9 million for the period January to March 2014 compared to EUR 15.4 million for the corresponding period of 2013 (+22.6%). This is equivalent to undiluted earnings per stock of 0.39 Euro (Q1 2013: 0.32 Euro).
In the Vehicle Rental Business Unit the operative highlights of the first quarter of 2014 were as follows:
In the first quarter of 2014 Sixt continued to expand its presence in the USA, the world's largest vehicle rental market. Three new company-owned offices were opened alongside one franchise station. As at reporting date, 31 March 2014, Sixt had 20 company-owned and 10 franchise stations in the USA. This brought the number of stations located at airports to 12, and the branches in inner cities to 18. During the period under review, the company was able to win over a renowned vehicle rental provider in the Boston area as franchisee.
As at reporting date, 31 March 2014, the number of Sixt rental stations (company stations and franchisees) came to 2,112 worldwide, compared to the 2,067 recorded at the end of calendar year 2013. The increase of 45 stations is essentially due to the ongoing expansion in Europe (outside Germany) and the USA. The number of rental offices in Germany as of the end of the first quarter was 504 and therefore the same as that recorded at the end of 2013.
The average number of vehicles in Germany and other countries (excluding franchisees) for the first three months of the year was 73,500, compared to an average of 78,000 for the full-year 2013 and the average number of 67,100 vehicles registered in the first quarter of last year.
In the first quarter of 2014 Sixt increased rental revenue by 9.5% to EUR 230.1 million (Q1 2013: EUR 210.1 million) with stronger demand registered both at home and abroad. Favoured by a noticeable more friendly business climate compared to the same quarter last year, rental revenue in Germany rose 6.7% year-on-year to EUR 142.0 million (Q1 2013: EUR 133.0 million). Demand was up across all customer segments. Thanks to the ongoing expansion measures in Europe and the USA, rental revenue outside of Germany climbed 14.4% and amounted to EUR 88.1 million (Q1 2013: EUR 77.1 million).
Other revenue from rental business came to EUR 21.8 million for the first quarter after EUR 21.2 million in the same quarter the year before (+2.8%).
Total quarterly revenue for the Vehicle Rental Business Unit amounted to EUR 251.9 million, an increase of 8.9% against the same quarter last year (EUR 231.3 million).
The Business Unit's EBT for the first quarter came to EUR 22.8 million, some 13.5% up on the corresponding period last year (EUR 20.2 million). This result includes start-up costs for various expansion activities, such as the opening of new stations in the USA and Europe. Return on sales for the Vehicle Rental Business Unit was 9.1% and therefore only marginally less the long-term target corridor of 10% but higher than the level of the same period last year (8.7%).
For 2014 the Bundesverband Deutscher Leasing-Unternehmen e.V. (BDL – German Association of Leasing Companies) expects the German leasing industry to perform positively. According to the BDL, new business is set to climb by around 7% in value. In the vehicle leasing business, the leasing companies stand to benefit from better prospects for the automobile industry in 2014. In the first quarter of 2014 new registrations were 6% higher than in the first quarter of 2013, according to data supplied by the Verband der Automobilindustrie e.V. (VDA – German Automotive Industry Association).
In the Leasing Business Unit the operative highlights of the first quarter of 2014 were as follows:
As at the end of the first quarter of 2014 the Leasing Business Unit's total number of leases in and outside Germany (excluding franchisees) was 79,600 (of which 24,700 were pure service and fleet management contracts) and therefore 4% higher than the figure at the end of 2013 (76,200 – of which 23,500 were pure service and fleet management contracts). Compared with the number of contracts as at 31 March 2013 (62,900 contracts, of which 15,600 were service and fleet management contracts) this is an increase of almost 27%. The growth is essentially attributable to the expansion in the segments fleet management, mobility consulting and the private and commercial customer business.
As a consequence of the expanded contract portfolio, the Leasing Business Unit increased first quarter revenue by 4.8% to EUR 100.7 million (Q1 2013: EUR 96.1 million). In Germany leasing revenues were up 5.0% to EUR 84.6 million (Q1 2013: EUR 80.6 million). In Europe outside of Germany revenue was up 3.6% to EUR 16.1 million, compared to EUR 15.5 million in the same period last year.
The revenue from the sale of used leasing vehicles declined 24.9% to EUR 28.7 million (Q1 2013: EUR 38.2 million). Account must be taken here of the fact that this revenue can be subject to substantial fluctuations at times, for example because of reporting day effects and Sixt's procurement policy.
The Business Unit's first quarter total revenue came to EUR 129.4 million and was therefore 3.7% under the corresponding figure of last year (EUR 134.3 million).
The Q1 EBT for the Leasing Business Unit came to EUR 3.6 million after it had closed out at EUR 4.0 million in Q1 2013 (-11.8%). Operative return on sales was 3.5% (prior-year period: 4.2%).
Other operating income for the first quarter amounted to EUR 11.8 million, which was slightly above the prior-year period (EUR 11.6 million).
Fleet expenses and cost of lease assets declined by 2.8% to EUR 146.1 million in the first three months (prior year: EUR 150.3 million). Reductions were recorded particularly for selling expenses, fuel and vehicle transportation.
From January to March 2014 personnel expenses climbed in line with the increasing headcount in the course of last year to EUR 45.0 million, exceeding the figure for the same period last year (EUR 40.9 million).
At EUR 72.0 million, depreciation and amortisation for the first quarter was 2.4% above the figure for the same period of the previous year (EUR 70.3 million). This is mainly attributable to depreciation of lease assets, which increased by 3.9% to EUR 37.8 million (Q1 2013: EUR 36.3 million).
Other operating expenses increased to EUR 94.6 million (Q1 2013: EUR 84.1 million). This increase is mainly due to higher expenses incurred in connection with outsourced activities for personnel services and risk provisioning.
For the quarter under review the Sixt Group records earnings before net finance costs and taxes (EBIT) of EUR 36.7 million (Q1 2013: EUR 32.9 million).
The net finance costs for the first three months improved in comparison to the prior-year period, to EUR -10.1 million (Q1 2013: EUR -10.6 million). The position includes a negative result from interest rate hedging transactions in the amount of EUR -1.2 million (Q1 2013: EUR -0.6 million) as well as the result from at-equity measured investments at EUR -0.8 million (Q1 2013: EUR -1.0 million). The figure for the previous year is adjusted accordingly.
As a result, the Group reported an increase in EBT to EUR 26.6 million for the first three months of the year (Q1 2013: EUR 22.3 million).
The consolidated profit after taxes and before minority interests for the period amounted to EUR 18.8 million (Q1 2013: EUR 15.4 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: 48.06 million shares outstanding), earnings per share (basic) for the first three months amounted to EUR 0.39, after EUR 0.32 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 2014, the Group's total assets, at EUR 2.57 billion, were EUR 202.7 million higher than at 31 December 2013 (EUR 2.37 billion).
Within the non-current assets the lease assets continue to be the most significant item. At EUR 805.2 million per 31 March 2014 they were EUR 30.6 million higher than the figure reported at the end of 2013 (EUR 774.6 million). All in all, non-current assets were up EUR 32.5 million to EUR 926.5 million.
Current assets increased per reporting date by EUR 170.2 million and amounted to EUR 1.65 billion at the end of March. This was essentially due to a higher total reported for rental assets of EUR 1,104.1 million (31 December 2013: EUR 1,012.7 million) and other receivables and assets (EUR +106.6 million as against the end of 2013). As of reporting date the Group's cash and cash equivalents came to EUR 31.0 million (31 December 2013: EUR 45.6 million).
Due to the positive first quarter result the Sixt Group's equity was EUR 695.1 million, up EUR 19.6 million from the end of 2013. The equity ratio amounted to 27.0% (31 December 2013: 28.5%) 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 2014 totalled EUR 1.04 billion, an increase of EUR 125.9 million from 31 December 2013 (EUR 909.9 million). Among the major items were financial liabilities, at EUR 984.9 million (31 December 2013: EUR 855.2 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 2014 totalled EUR 842.4 million, and were thus EUR 57.2 million above the figure from the end of 2013 (EUR 785.2 million). This is primarily due to an increase in trade payables contingent on the reporting date. Following repayment of current credits and/or the transformation of maturities into non-current financial liabilities, the financial liabilities of EUR 168.3 million were significantly down on the level recorded at the end of 2013 (EUR 255.7 million).
As at the end of the first quarter of 2014, the Sixt Group reported cash flows of EUR 98.0 million (Q1 2013: EUR 84.1 million). Adjusted for changes in working capital this results in a cash inflow of EUR 20.3 million for the first three months, which is primarily the result of an increase in trade payables contingent on the reporting date (Q1 2013: cash inflow of EUR 110.7 million).
Net cash flows used in investing activities led to a cash outflow of EUR 77.3 million (Q1 2013: cash outflow of EUR 138.4 million), primarily as a result of investments in lease assets and current financial assets.
Due to taking out borrower's note loans and long-term bank loans the financing activities led to cash inflows of EUR 42.4 million (Q1 2013: cash outflow of EUR 2.0 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 2013 by EUR 14.6 million as at 31 March 2014 (Q1 2013: reduction of EUR 29.7 million).
In the period from January to March 2014 Sixt added around 41,700 vehicles to the rental and leasing fleet (Q1 2013: 36,500 vehicles) with a total value of EUR 1.00 billion (Q1 2013: EUR 0.88 billion). According to the anticipated growth in demand in the rental segment this was more vehicles than in the corresponding period the year before. Sixt continues to expect the investment volume for the full-year 2014 to be marginally higher than the previous year (2013: EUR 3.87 billion).
No events of special significance for the net assets, financial position and results of operations of the Sixt Group occurred after the reporting date as at 31 March 2014.
Business prospects in the markets essential for the Sixt Group improved at the start of this year. The relevant forecasts of industry and business experts proved to be accurate for the first quarter. Thus, demand for mobility services increased year-on-year. However, Sixt continues to expect fleet costs and other operative expenses to increase in 2014.
With economic conditions brightening and following the good performance in the first quarter, the Managing Board affirms its outlook for the full fiscal year 2014, expecting consolidated operating revenue to climb slightly over last year's total. Growth stimulus should once again come predominantly from the markets abroad. On the basis of a continued demand-driven and cautious fleet policy and consistent cost management the expectation is to achieve a stable to slightly higher Group EBT.
The risk and opportunity profile of the Sixt Group did not change significantly in the first three months of 2014 from the information provided in the Management report on the Group's and the Company's situation for financial year 2013. The Annual Report 2013 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.
In the first quarter of 2014 the worldwide financial and capital markets could not follow up on the dynamic upward trend of last year. Instead, in volatile market conditions stock indices moved sideways. Burdening their performance was the political crisis in the Ukraine, as well as concerns regarding China's growth potential, the falling emerging market currencies and in some cases a cautious corporate reporting season. These trends were countered by signals coming from the European Central Bank, indicating that it will continue its low interest rate policy, which shored up the successful issuance of Irish and Portuguese government bonds, as well as improving economic data coming out of the USA and parts of Europe.
The German stock index (DAX – Deutsche Aktienindex) oscillated substantially throughout the first three months of the year, closing the quarter at 9,556 points. This was on a level with the close of the year 2013 (9,552 points). The SDAX, which includes Sixt SE's ordinary shares, performed more dynamically. The index closed 5.6% up at 7,169 points (year end 2013: 6,789 points).
Sixt shares, both ordinary and preference shares, significantly outperformed the DAX and SDAX during the first quarter. Ordinary shares closed out the first quarter at EUR 28.99, which also marked the high for the entire quarter (31 December 2013: EUR 23.42). Overall ordinary shares climbed 23.8% in the quarter under review.
Preference shares closed out the quarter at EUR 22.87, also marking its quarter's high (31 December 2013: EUR 19.21) and increasing the value of preference shares by 19.1% (all figures refer to Xetra closing prices).
| Consolidated Income Statement EUR thou. |
Q1 2014 |
Q1 20133) |
|---|---|---|
| Revenue | 382,569 | 366,879 |
| Other operating income | 11,795 | 11,651 |
| Fleet expenses and cost of lease assets | 146,122 | 150,332 |
| Personnel expenses | 44,953 | 40,862 |
| Depreciation and amortisation expense1) | 72,002 | 70,288 |
| Other operating expenses | 94,530 | 84,122 |
| Earnings before interest and taxes (EBIT) | 36,757 | 32,926 |
| Net finance costs | -10,106 | -10,626 |
| Of which attributable to at-equity measured investments | -806 | -958 |
| Earnings before taxes (EBT) | 26,651 | 22,300 |
| Income tax expense | 7,815 | 6,870 |
| Consolidated profit | 18,836 | 15,430 |
| Of which attributable to minority interests | -59 | 14 |
| Of which attributable to shareholders of Sixt SE | 18,895 | 15,416 |
| Earnings per share in EUR (basic) | 0.39 | 0.32 |
| Average number of shares2) (basic/weighted) |
48,058,286 | 48,058,286 |
1) Of which depreciation of rental vehicles (EUR thou.): Q1 2014: 30,990 (Q1 2013: 31,333) Of which depreciation of lease assets (EUR thou.): Q1 2014: 37,748 (Q1 2013: 36,337)
2) Number of ordinary and preference shares, weighted average in the period
3) Adjusted
| Statement of Comprehensive Income EUR thou. |
Q1 2014 |
Q1 2013 |
|---|---|---|
| Consolidated profit | 18,836 | 15,430 |
| Other comprehensive income (not recognised in the income statement) | ||
| Components that could be recognised in the income statement in future | ||
| Currency translation gains/losses | 510 | -1,722 |
| Derivative financial instruments in hedge relationship | -217 | - |
| Related deferred taxes | 55 | - |
| Total comprehensive income | 19,184 | 13,708 |
| Of which attributable to minority interests | -59 | 14 |
| Of which attributable to shareholders of Sixt SE | 19,243 | 13,694 |
| Assets | Interim report | Consolidated |
|---|---|---|
| 31.03.2014 | financial statements | |
| EUR thou. | 31.12.20131) | |
| Non-current assets | ||
| Goodwill | 18,442 | 18,442 |
| Intangible assets | 18,937 | 17,203 |
| Property and equipment | 59,606 | 57,260 |
| Investment property | 3,034 | 3,043 |
| Lease assets | 805,201 | 774,622 |
| At-equity measured investments | 1,820 | 2,625 |
| Non-current financial assets | 3,358 | 3,360 |
| Non-current other receivables and assets | 5,735 | 6,154 |
| Deferred tax assets | 10,378 | 11,294 |
| Total non-current assets | 926,511 | 894,003 |
| Current assets | ||
| Rental vehicles | 1,104,119 | 1,012,710 |
| Inventories | 52,659 | 48,364 |
| Trade receivables | 232,396 | 254,182 |
| Current other receivables and assets | 214,960 | 108,353 |
| Income tax receivables | 11,584 | 7,395 |
| Cash and bank balances | 31,022 | 45,578 |
| Total current assets | 1,646,740 | 1,476,582 |
| Total assets | 2,573,251 | 2,370,585 |
| Equity and liabilities | Interim report | Consolidated |
| 31.03.2014 | financial statements | |
| EUR thou. | 31.12.20131) | |
| Equity | ||
| Subscribed capital | 123,029 | 123,029 |
| Capital reserves | 202,006 | 201,995 |
| Other reserves (including retained earnings) | 369,851 | 350,222 |
| Minority interests | 171 | 252 |
| Total equity | 695,057 | 675,498 |
| Non-current liabilities and provisions | ||
| Non-current other provisions | 495 | 516 |
| Non-current financial liabilities | 984,943 | 855,184 |
| Non-current finance lease liabilities | ||
| 29,526 | 33,401 | |
| Non-current other liabilities | 9,712 | 9,859 |
| Deferred tax liabilities | 11,102 | 10,986 |
| Total non-current liabilities and provisions | 1,035,778 | 909,946 |
| Current liabilities and provisions | ||
| Current other provisions | 69,652 | 65,639 |
| Income tax provisions | 39,853 | 38,617 |
| Current financial liabilities | 168,308 | 255,677 |
| Trade payables | 477,845 | 344,280 |
| Current finance lease liabilities | 11,540 | 9,265 |
| Current other liabilities | 75,218 | 71,663 |
| Total current liabilities and provisions | 842,416 | 785,141 |
| Total equity and liabilities | 2,573,251 | 2,370,585 |
1) Adjusted
| EUR thou. | Q1 2014 |
Q1 2013 |
|---|---|---|
| Cash flow from operating activities | ||
| Consolidated profit | 18,836 | 15,430 |
| Income taxes recognised in income statement | 6,993 | 6,690 |
| Income taxes paid | -9,946 | -9,478 |
| Financial income recognised in income statement | 9,855 | 10,138 |
| Interest received | 551 | 721 |
| Interest paid | -4,479 | -6,288 |
| Depreciation and amortisation Income from disposal of fixed assets |
72,002 222 |
70,288 209 |
| Other (non-)cash expenses and income | 3,933 | -3,646 |
| Cash Flow | 97,967 | 84,064 |
| Change in rental vehicles, net | -122,399 | -33,803 |
| Change in inventories | -4,295 | -880 |
| Change in trade receivables | 21,786 | 21,121 |
| Change in trade payables | 133,565 | 89,984 |
| Change in other net assets | -106,313 | -49,845 |
| Net cash flows from operating activities | 20,311 | 110,641 |
| Investing activities | ||
| Proceeds from disposal of intangible assets, property and equipment, and investment property | 28 | 126 |
| Proceeds from disposal of lease assets | 28,699 | 38,238 |
| Proceeds from disposal of financial assets | 1 | - |
| Payments for investments in intangible assets, property and equipment | -7,721 | -6,074 |
| Payments for investment in lease assets | -98,339 | -81,638 |
| Payments for investment in financial assets | - | -1,408 |
| Change in the scope of consolidation | - | 221 |
| Change in current financial assets | - | -87,916 |
| Net cash flows used in investing activities | -77,332 | -138,451 |
| Financing activities | ||
| Payments received from taken out borrower's note loans, bonds and long-term bank loans | 129,500 | - |
| Other change in current financial liabilities | -87,369 | -2,562 |
| Other change in non-current financial liabilities | 259 | 562 |
| Net cash flows from/used in financing activities | 42,390 | -2,000 |
| Net change in cash and cash equivalents | -14,631 | -29,810 |
| Effect of exchange rate changes on cash and cash equivalents Cash and cash equivalents at 1 January |
75 45,578 |
115 67,280 |
| Cash and cash equivalents at 31 March | 31,022 | 37,585 |
| EUR thou. | Subscribed capital |
Capital reserve |
Other reserves1) |
Equity attributable to shareholders of Sixt SE |
Minority interests |
Total equity |
|---|---|---|---|---|---|---|
| 1 January 2014 | 123,029 | 201,995 | 350,222 | 675,246 | 252 | 675,498 |
| Consolidated profit Q1 2014 Dividend payments for |
18,895 | 18,895 | -59 | 18,836 - |
||
| 2013 Currency translation differences |
510 | 510 | 510 | |||
| Other changes | 11 | 224 | 235 | -22 | 213 | |
| 31 March 2014 | 123,029 | 202,006 | 369,851 | 694,886 | 171 | 695,057 |
| EUR thou. | Subscribed capital |
Capital reserve |
Other reserves1) |
Equity attributable to shareholders of Sixt SE |
Minority interests |
Total equity |
|---|---|---|---|---|---|---|
| 1 January 2013 Consolidated profit Q1 2013 |
123,029 | 206,702 | 303,055 15,416 |
632,786 15,416 |
23 14 |
632,809 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 |
1) Including retained earnings
The consolidated financial statements of Sixt SE as at 31 December 2013 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 2014, which were prepared on the basis of International Accounting Standard (IAS) 34 (Interim Financial Reporting), as in the 2013 consolidated financial statements.
Pursuant to the regulations under IFRS 11 (Interests in Joint Ventures) previously proportionately consolidated joint ventures are recognised in fiscal year 2014 according to the at-equity method. As a whole, the effects are not material and previous year figures were adjusted accordingly.
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 2013. 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 2014 have not been audited or reviewed by the Company's auditors, Deloitte & Touche GmbH Wirtschaftsprüfungsgesellschaft, Munich.
Sixt SE, domiciled in Zugspitzstrasse 1, 82049 Pullach, Germany, is entered in section B of the commercial register at the Munich Local Court, under the number 206738.
No changes in the consolidated Group as against the end of 2013 occurred. Compared with reporting date as at 31 March 2013 Sixt College GmbH, Pullach, Sixt Autoland GmbH, Pullach, Sixt Reparatur & Service GmbH, Pullach, and Sixt Executive GmbH, Pullach, were deconsolidated. In comparison SXT Telesales GmbH, Berlin, MD Digital Mobility GmbH & Co. KG, Munich, SXT Beteiligungs GmbH & Co. KG, Pullach, and Sixt Allgemeine Leasing (Schweiz) AG, Basle, were consolidated for the first time after the reporting date as at 31 March 2013. These companies were established by the Sixt Group and so far have not been consolidated in the annual financial statements of the Group because of their insignificance. Their initial consolidation had no noteworthy effects on the Group's net assets, financial position and results of operations.
Revenue is broken down as follows:
| Q1 | Q1 | Change | |
|---|---|---|---|
| EUR million | 2014 | 2013 | in % |
| Operating revenue | 352.6 | 327.4 | 7.7 |
| Thereof rental revenue | 230.1 | 210.1 | 9.5 |
| Thereof other revenue from rental business | 21.8 | 21.2 | 2.8 |
| Thereof leasing revenue | 100.7 | 96.1 | 4.8 |
| Leasing sales revenue | 28.7 | 38.2 | -24.9 |
| Other revenue | 1.3 | 1.3 | 3.8 |
| Consolidated revenue | 382.6 | 366.9 | 4.3 |
Fleet expenses and cost of lease assets are broken down as follows:
| EUR million | Q1 2014 |
Q1 2013 |
Change in % |
|---|---|---|---|
| Repairs, maintenance and reconditioning | 48.7 | 45.6 | 6.7 |
| Fuel | 25.9 | 27.7 | -6.4 |
| Insurance | 18.5 | 16.0 | 15.6 |
| Transportation | 7.8 | 8.2 | -5.0 |
| Other, including selling expenses | 45.2 | 52.8 | -14.4 |
| Group total | 146.1 | 150.3 | -2.8 |
Expenses of EUR 70.2 million (Q1 2013: EUR 68.5 million) are attributable to the Vehicle Rental Business Unit and EUR 75.9 million to the Leasing Business Unit (Q1 2013: EUR 81.8 million).
Other operating expenses are broken down as follows:
| EUR million | Q1 2014 |
Q1 2013 |
Change in % |
|---|---|---|---|
| Leasing expenses | 15.8 | 14.9 | 5.7 |
| Commissions | 19.7 | 17.8 | 11.0 |
| Expenses for buildings | 12.3 | 12.1 | 1.2 |
| Other selling and marketing expenses | 8.9 | 8.9 | -0.1 |
| Expenses of write-down of receivables | 3.9 | 0.5 | >100.0 |
| Other personnel services | 16.0 | 11.3 | 41.7 |
| Miscellaneous expenses | 17.9 | 18.6 | -3.8 |
| Group total | 94.5 | 84.1 | 12.4 |
Net finance costs of EUR -10.1 million (Q1 2013: EUR -10.6 million) contained a net interest expense of EUR -8.7 million (Q1 2013: EUR -9.5 million). The position includes a negative result from interest rate hedging transactions in the amount of EUR -1.2 million (Q1 2013: EUR -0.6 million) as well as the result from at-equity measured investments at EUR -0.8 million (Q1 2013: EUR -1.0 million).
The income tax expense is composed of current income taxes of EUR 7.0 million (Q1 2013: EUR 6.7 million), as well as deferred taxes of EUR 0.8 million (Q1 2013: EUR 0.2 million). Based on its earnings before taxes (EBT), the Sixt Group's tax rate was 29% in the period under review (Q1 2013: 31%).
Earnings per share are as follows:
| Basic earnings per share | Q1 2014 |
Q1 2013 |
|
|---|---|---|---|
| Consolidated profit for the period after minority interests |
EUR thou. |
18,895 | 15,416 |
| Profit attributable to ordinary shares | EUR thou. |
12,027 | 9,772 |
| Profit attributable to preference shares | EUR thou. |
6,868 | 5,644 |
| Weighted average number of ordinary shares | 31,146,832 | 31,146,832 | |
| Weighted average number of preference shares | 16,911,454 | 16,911,454 | |
| Earnings per ordinary share | EUR | 0.39 | 0.31 |
| Earnings per preference share | EUR | 0.41 | 0.33 |
The profit/loss attributable to preference shares includes the additional dividend of EUR 0.02 per preference share payable in accordance with the Articles of Association for preference shares carrying dividend rights in the financial year. The weighted average number of shares is calculated on the basis of the proportionate number of shares per month for each category of shares, taking due account of the respective number of treasury shares. Earnings per share are calculated by dividing the profit or loss attributable to each class of shares by the weighted average number of shares per class of shares. As in the previous year, there were no financial instruments as at the reporting date that could dilute the profit attributable to Sixt shares.
Lease assets increased by EUR 30.6 million to EUR 805.2 million as at the reporting date (31 December 2013: EUR 774.6 million). As in 2013 the increase is primarily the result of a resurgent volume of contracts.
Non-current other receivables and assets mainly include the non-current portion of finance lease receivables amounting to EUR 2.4 million (31 December 2013: EUR 2.8 million).
The rental vehicles item increased for seasonal reasons by EUR 91.4 million as against 31 December 2013, up from EUR 1,012.7 million to EUR 1,104.1 million.
Current other receivables and assets falling due within one year can be broken down as follows:
| EUR million | 31.03.2014 | 31.12.2013 |
|---|---|---|
| Financial other receivables and assets | ||
| Current finance lease receivables | 3.3 | 3.6 |
| Receivables from affiliated companies | 3.1 | 1.5 |
| Receivables from other investees | 4.1 | 5.3 |
| Miscellaneous assets | 13.1 | 14.0 |
| Non-financial other receivables and assets | ||
| Recoverable income taxes | 11.6 | 7.4 |
| Other recoverable taxes | 38.1 | 5.0 |
| Insurance claims | 5.4 | 6.3 |
| Deferred income | 17.5 | 13.9 |
| Miscellaneous assets | 130.3 | 58.7 |
| Group total | 226.5 | 115.7 |
The share capital of Sixt SE as at 31 March 2014 amounts unchanged to EUR 123,029,212 (31 December 2013: EUR 123,029,212).
The share capital is composed of:
| No-par value shares |
Nominal value EUR |
|
|---|---|---|
| Ordinary shares | 31,146,832 | 79,735,890 |
| Non-voting preference shares | 16,911,454 | 43,293,322 |
| Balance at 31.03.2014 | 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 authorisation in the period up to 5 June 2017. The authorisation may be exercised wholly or partially for any purpose permitted by law. Acquisitions for the purpose of trading in treasury shares are excluded. This authorisation has not yet been exercised as of reporting date.
The Managing Board is authorised to increase the share capital on one or more occasions in the period up to 5 June 2017, with the consent of the Supervisory Board, by up to a maximum of EUR 64,576,896 by issuing new no-par value bearer shares against cash and/or non-cash contributions (Authorised capital). The Annual Report 2013 contains further details on the authorisation.
By resolution of the Annual General Meeting of 20 June 2013 the Managing Board is authorised to issue, on one or more occasions in the period up to 19 June 2018 with the consent of the Supervisory Board, profit participation bonds and/or rights registered in the name of the holder and/or bearer by up to a maximum of EUR 350,000,000.00 with a fixed or open-ended term against cash and/or non-cash contributions. The Annual Report 2013 contains further details on the authorisation.
The non-current financial liabilities have residual terms of more than one year and are broken down as follows:
| Residual term of Residual term of more 1-5 years |
than 5 years | |||
|---|---|---|---|---|
| EUR million | 31.03.2014 | 31.12.2013 | 31.03.2014 | 31.12.2013 |
| Borrower's note loans | 394.9 | 289.5 | 29.9 | 65.8 |
| Bonds | 495.3 | 494.9 | 2.2 | 2.2 |
| Liabilities to banks | 62.6 | 2.8 | - | - |
| Group total | 952.8 | 787.2 | 32.1 | 68.0 |
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 and the 2012/2018 bond issue from 2012 (each with a nominal value EUR 250 million). In the period under review borrower's notes loans with nominal terms of three years and a total volume of EUR 70.0 million were newly issued.
As in the case of year-end 2013, current other provisions primarily comprise provisions for taxes, legal costs and rental operations, and employee-related provisions.
Current financial liabilities falling due within one year are broken down as follows:
| EUR million | 31.03.2014 | 31.12.2013 |
|---|---|---|
| Borrower's note loans | 76.2 | 76.2 |
| Bonds | 2.0 | 2.1 |
| Liabilities to banks | 69.0 | 162.1 |
| Other liabilities | 21.1 | 15.3 |
| Group total | 168.3 | 255.7 |
The borrower's note loans reported as at 31 March 2014 are due for repayment in May 2014.
The Sixt Group is active in the two main business areas of Vehicle Rental and Leasing. When combined, the revenue from these activities – excluding vehicle sales revenue – is also described as "operating revenue". Activities that cannot be allocated to these segments, such as financing, holding company activities, real estate leasing, or e-commerce transactions, are combined in the Other segment. The segment information for the first three months of 2014 (compared with the first three months of 2013) is as follows:
| Business area | Rental | Leasing | Other | Reconciliation | Group | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| EUR million | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 |
| External revenue | 251.9 | 231.3 | 129.4 | 134.3 | 1.3 | 1.3 | - | - | 382.6 | 366.9 |
| Internal revenue | 1.3 | 1.2 | 2.9 | 2.7 | 4.4 | 4.2 | -8.6 | -8.1 | - | - |
| Total revenue | 253.2 | 232.5 | 132.3 | 137.0 | 5.7 | 5.5 | -8.6 | -8.1 | 382.6 | 366.9 |
| Depreciation/ amortisation |
34.1 | 33.7 | 37.8 | 36.4 | 0.1 | 0.2 | - | - | 72.0 | 70.3 |
| EBIT1) | 27.7 | 24.1 | 10.0 | 10.2 | -0.9 | -1.4 | - | - | 36.7 | 32.9 |
| Interest income | 0.5 | 0.5 | 0.4 | 0.3 | 9.7 | 8.5 | -10.3 | -8.8 | 0.3 | 0.5 |
| Interest expense | -4.5 | -3.5 | -6.8 | -6.5 | -8.1 | -8.8 | 10.3 | 8.8 | -9.0 | -10.0 |
| Other net finance costs2 |
-0.8 | -0.9 | - | - | -0.6 | -0.2 | - | - | -1.4 | -1.1 |
| EBT3) | 22.8 | 20.2 | 3.6 | 4.0 | 0.2 | -1.9 | - | - | 26.6 | 22.3 |
| Investments4) | 7.7 | 7.3 | 98.4 | 81.7 | - | 0.1 | - | - | 106.1 | 89.1 |
| Assets5) | 1,657.6 | 1,540.5 | 960.8 | 763.2 | 1,602.6 | 1,559.7 | -1,669.8 | -1,530.4 | 2,551.3 | 2,333.1 |
| Liabilities5) | 1,040.0 | 1,334.5 | 933.4 | 693.6 | 1,046.7 | 1,067.7 | -1,192.9 | -1,413.4 | 1,827.2 | 1,682.4 |
| Region | Germany | Abroad | Reconciliation | Group | ||||
|---|---|---|---|---|---|---|---|---|
| EUR million | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 |
| Total revenue | 269.2 | 265.8 | 116.2 | 103.3 | -2.8 | -2.2 | 382.6 | 366.9 |
| Investments4) | 97.1 | 70.5 | 9.0 | 18.6 | - | - | 106.1 | 89.1 |
| Assets5) | 2,162.4 | 2,048.1 | 919.9 | 626.2 | -531.0 | -341.2 | 2,551.3 | 2,333.1 |
1) Corresponds to earnings from operating activities (EBIT)
2) Including investment income or expense
3) Corresponds to earnings before taxes (EBT)
4) Excluding investments in rental vehicles and current financial assets
5) Prior-year figures are not adjusted due to insignificance
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 item "cash and bank balances" in the balance sheet.
There were no material changes in contingent liabilities resulting from guarantees or similar obligations in the period under review as against the 2013 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 "current other receivables and assets" and "current other liabilities" in the balance sheet. The transactions are conducted on arm's length terms. The following provides an overview of significant account balances arising from such relationships:
Substantial receivables were recognised in respect of SIXT S.à.r.l., Luxembourg (EUR 0.7 million, 31 December 2013: EUR 0.9 million), Sixt College GmbH (EUR 0.7 million, December 2013: EUR 0 million), Sixt Autoland GmbH (EUR 0.5 million, December 2013: EUR 0 million), Sixt Reparatur & Service GmbH (EUR 0.2 million, December 2013: EUR 0 million), SIXT S.A.R.L., Monaco (EUR 0 million, December 2013: EUR 0.2 million), Sixt Financial Services USA, LLC, USA (EUR 0.9 million, 31 December 2013: EUR 0.2 million), kud.am GmbH (EUR 0 million, December 2013: EUR 0 million), and Sixt International Holding GmbH (EUR 0.1 million, December 2013: EUR 0.1 million). Receivables from kud.am GmbH are impaired. Substantial liabilities were recognised from Sixt Aéroport SARL, France (EUR 0.5 million, December 2013: EUR 0.6 million), Sixt Sud SARL, France (EUR 0.3 million, December 2013: EUR 0.4 million), Sixti SARL, France (EUR 0.3 million, December 2013: EUR 0.4 million), e-Sixt Verwaltungs GmbH (EUR 0.1 million, December 2013: EUR 0.1 million), Sixt Immobilien Beteiligungen GmbH (EUR 0.1 million, 31 December 2013: EUR 0.1 million), United rentalsystem SARL, France (EUR 0.3 million, 31 December 2013: EUR 0.4 million), Sixt Développement SARL, France
(EUR 0.2 million, 31 December 2013: EUR 0.2 million), Sixt Executive France SARL, France (EUR 0.3 million, 31 December 2013: EUR 0.4 million), Sixt Executive GmbH (EUR 0.1 million, 31 December 2013: EUR 0.9 million), Sixt Travel GmbH (EUR 0.3 million, 31 December 2013: EUR 0.3 million), SIXT S.A.R.L., Monaco (EUR 0.2 million, 31 December 2013: EUR 0 million), Sixt Franchise USA, LLC, USA (EUR 0.3 million, 31 December 2013: EUR 0.5 million), and Sixt Nord SARL, France (EUR 0.6 million, 31 December 2013: EUR 0.7 million). The transactions with these affiliated companies are insignificant. They are conducted at arm's length and result from the normal course of business.
The Group rents 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 0.2 million (Q1 2013: 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 2014, Erich Sixt Vermögensverwaltung GmbH, all shares of which are held by the Sixt family, held an unchanged 18,711,822 shares of the ordinary shares of Sixt SE.
Pullach, 15 May 2014
Sixt SE The Managing Board
Sixt SE Zugspitzstrasse 1 82049 Pullach, Germany
[email protected] Phone +49 (0) 89/ 7 44 44 - 5104 Fax +49 (0) 89/ 7 44 44 - 85104
Investor Relations website http://ir.sixt.eu Further sites http://www.sixt.com http://se.sixt.de/en
Published by Sixt SE Zugspitzstrasse 1 82049 Pullach, Germany
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