EANS-News: Sixt Aktiengesellschaft For the jubilee year 2012 Sixt is
earmarking a significant dividend increase
--------------------------------------------------------------------------------
Corporate news transmitted by euro adhoc. The issuer/originator is solely
responsible for the content of this announcement.
--------------------------------------------------------------------------------
annual result/Dividend proposal
Pullach (euro adhoc) - CORPORATE NEWS
For the jubilee year 2012 Sixt is earmarking a significant
dividend increase
- Mobility service provider generates earnings before taxes (EBT) of EUR
118.6 million in 2012, one of the best in the company's history
- Consolidated operating revenue up by almost 4%
- Foreign business turns more and more into growth driver:
share in consolidated operating revenue up to 31%
- Equity ratio rises to 29.1%
- Dividend proposed at EUR 1.00 including bonus for ordinary shares and
EUR 1.02 including bonus for preference shares
- CEO Erich Sixt: "We will continue all growth initiatives unabated even
in the currently difficult market environment."
- Solid earnings also expected in 2013
Pullach, 14 March 2013 - In 2012 Sixt, Germany's biggest car rental company and
one of the leading international mobility service providers, generated
consolidated earnings before taxes (EBT) of EUR 118.6 million. This ranks as one
of the best results in the history of the company, which celebrated its 100th
year in 2012. As had been announced, the record figure of the year before (EUR
138.9 million) proved unreachable, but with an EBT-margin (in relation to
consolidated operating revenue) of 8.3% (2011: 10.1%) Sixt continues to be one
of the most profitable companies in its industry worldwide. Consolidated
operating revenue went up by 3.9%, driven above all by the dynamic growth in the
Vehicle Rental Unit's foreign business.
Due to the good results and the excellent equity base the Managing Board will
propose a substantial increase in the dividend for the financial year 2012 to
the Supervisory Board and the Annual General Meeting on 20 June 2013: every
ordinary share is to receive EUR 0.55 (2011: EUR 0.60) plus a bonus of EUR 0.45
(2011: EUR 0.15). Under the proposal every preference share is to receive EUR
0.57 (2011: EUR 0.62) plus a bonus of EUR 0.45 (2011: EUR 0.15). This would
increase the total dividend distribution from EUR 37 million to over EUR 48
million.
Sixt announced the preliminary key figures for financial year 2012 during the
company's annual press conference in Munich today.
Erich Sixt, Chairman of the Managing Board of Sixt AG: "The fact that we managed
to generate such a good result in 2012, despite the recessionary climate in
Europe, the general cost increases and in spite of the start-up costs for such
future projects as setting up our US business, proves the inner strength of the
Sixt Group. The dynamic growth in Europe outside of Germany is particularly
gratifying. Although our plans for 2013 are cautious because of the difficult
market environment, we will continue all growth initiatives unabated."
Dr. Julian zu Putlitz, Chief Financial Officer of Sixt AG: "One of the special
strengths of our Group vis-a-vis the competition is its rock-solid equity and
financing base, which we optimized further in 2012. We have ample operative and
strategic room for manoeuvre for future growth. And our highly attractive
dividend proposal for financial year 2012 proves once more that Sixt attaches
great importance to shareholder friendliness."
Group revenue and earnings performance 2012:
Rental revenues rose in 2012 by 6.5% to EUR 953.7 million (2011: EUR 895.7
million). The driving force was the foreign business operations, which expanded
by 20.1% to EUR 349.0 million. Sixt managed once more to gain market shares in
key European rental markets, such as France and Spain. In Germany demand ebbed
off during the course of the year because of the drop in business activity, so
that rental revenue of EUR 604.7 million was roughly in line with last year's
level (-0.1%).
Leasing revenue came to EUR 382.9 million, and, as had been expected, was
slightly below the previous year's figure of EUR 393.5 million (-2.7%), although
sales bounced back in the course of the year due to a growing portfolio of
contracts.
At EUR 1.43 billion consolidated operating revenue, excluding revenue from the
sale of used leasing vehicles, was 3.9% higher than the prior-year figure (2011:
EUR 1.37 billion). The share of foreign business increased further from 26.8% to
30.6%.
Total consolidated revenue increased 2.0% to EUR 1.60 billion from last year's
EUR 1.56 billion.
Consolidated earnings before interest and taxes (EBIT) came to EUR 167.7
million, which was 11.7% less than the year before at EUR 189.8 million.
Consolidated earnings before taxes (EBT) of EUR 118.6 million remained on a high
and satisfactory level. This was 14.6% down on the record figure of
EUR 138.9 million generated in 2011. However, adjusting the previous year by the
one-off income of EUR 4.4 million generated in the Leasing Business Unit, the
EBT decline was 11.8%.
After taxes the Sixt Group reports a profit of EUR 79.2 million after EUR 97.5
million the year before (-18.7%).
The earnings performance in 2012 was affected by the following key factors:
Slackening demand in the rental business at more or less constant rental prices
in an increasingly difficult European economic environment.
Start-up costs for growth initiatives, such as setting up a station network on
the US rental market or the DriveNow carsharing service.
General price increases at numerous operating costs.
Equity base strengthened further
In 2012 Sixt strengthened its already strong equity base still further. As of
31 December of last year the Group's equity amounted to EUR 632.8 million, 6.2%
or EUR 36.7 million above the figure as of the reporting date 2011 (EUR 596.1
million).
The equity ratio also improved to 29.1% of total assets
(31 December 2011: 25.6%). which is substantially above the targeted minimum
value of 20% and once again significantly above the average for the German
rental and leasing industry.
Cautious investment policy, attuned to environment
In view of the growing economic uncertainties Sixt already started to call
vehicle orders more cautiously and flexibly in the second half of 2012. Over the
entire financial year the Group added around 153,600 vehicles to the rental and
leasing fleet (2011: 158,900 vehicles) with a total value of EUR 3.69 billion
(2011: EUR 3.75 billion). This equals a decrease of 3.3% in the number of
vehicles and 1.6% in the value of vehicles.
Outlook for financial year 2013
The restrained economic conditions, above all in the Euro area, should see
companies undertake more efforts to save, which in turn could adversely affect
travel activities, above all of business customers. Sixt therefore expects
domestic demand to drop in the Vehicle Rental Business Unit, while the growth
path in the other European countries and the USA is set to continue. All in all,
the Managing Board expects consolidated rental revenues to contract slightly in
2013.
Against the backdrop of invigorated sales measures, also in the private customer
segment, and the growth in the contract portfolio seen again in 2012, Sixt
expects revenues in the Leasing Business Unit to remain stable or even grow
gently in 2013.
In 2013 Sixt will once again adhere to the principle of giving preference to
adequate margins over volume growth ("Earnings before growth"). Nonetheless,
strategic growth initiatives, such as the expansion in the USA, will continue
without restrictions.
Subject to the general economic outlook in Europe not worsening further than
projected, the Managing Board reckons that the Sixt Group will generate pre-tax
earnings slightly below the previous year's level, albeit with an earnings
position and return on equity that is satisfactory once again in the prevailing
market conditions.
Developments in the operating business units
Vehicle Rental:
In Western Europe and the USA Sixt operates its own subsidiaries, while in the
other European countries and the other regions of the world, the company is
represented by a close-knit network of franchisees. All in all, vehicle rental
services are offered in around 100 countries under the brand name Sixt. At the
end of 2012, Sixt had 1,970 rental offices worldwide, 494 of them in Germany.
The activities that started in 2011 to gradually develop the US market, by far
the world's biggest rental market, continue to outperform expectations.
Currently, Sixt maintains 12 stations of its own, with the focus on Florida.
Parallel to these, 2012 saw the set-up of a franchise network, and Sixt is also
sounding out the Canadian market.
The premium carsharing service DriveNow remains also on expansion course. In
2012 it won over 60,000 new registered user bringing the total to more than
85,000 up to date. In addition, the vehicle portfolio was extended to further
BMW and MINI models.
The rental revenue for the Vehicle Rental Business Unit's increased in 2012 by
6.5 % to EUR 953.7 million. Foreign business grew by EUR 20.1 million to EUR
349.0 million, with strong double-digit percentage growth recorded above all in
Spain and France. The Business Unit's total revenue (including other revenue
from rental business) also registered a 6.5% increase to EUR 1.04 billion and
EBT remained at an high level of EUR 106.4 million (2011: EUR 119.6 million).
Leasing:
Sixt Leasing is one of Germany's largest vendor-neutral, non-bank full-service
leasing companies, whose services extend not only to classic finance leasing but
also to a broad range of services for efficient fleet management that reduces
the customers' mobility costs.
In an initially still friendly market climate for finance leasing that darkened
over during the course of the second half year, Sixt managed to expand the
contract portfolio (domestic and foreign, excluding franchisees) at the end of
2012 by 10.5% to 62,200 contracts (year end 2011: 56,300). Special emphasis was
placed on extending the fleet management and private customer leasing segments.
Leasing revenue declined in 2012 by 2.7% year-on-year to EUR 382.9 million
(2011: EUR 393.5 million), although revenue dynamic picked up during the course
of the year. Total revenues for the Leasing Business Unit (including the
fluctuation-prone proceeds from the sale of used vehicles) amounted to EUR 545.7
million or 5.4% below last year's total of EUR 576.8 million.
Though EBT at EUR 16.3 million fell short of the record figure of EUR 25.4
million of the previous year (augmented by a one-time income of EUR 4.4
million), the return on sales was 4.3% (2011: 6.5%) and was therefore only
marginally below the long-term target figure of 5%.
Please note:
As announced, Sixt Group's final Annual Financial Statements for 2012 will be
published on 16 April 2013.
Further information:
Sixt AG
Frank Elsner
Sixt Central Press Office
T +49 - 89 - 99 24 96 - 30
F +49 - 89 - 99 24 96 - 32
E-Mail: pressrelations@sixt.com
Further inquiry note:
Investor Relations
E-Mail: investorrelations@sixt.com
Tel.: +49(0)89-74444-5104
end of announcement euro adhoc
--------------------------------------------------------------------------------
company: Sixt Aktiengesellschaft
Zugspitzstraße 1
D-82049 Pullach
phone: +49 (0) 89 74444 5104
FAX: +49 (0) 89 74444 85104
mail: InvestorRelations@sixt.de
WWW: http://www.sixt.de
sector: Automotive Equipment
ISIN: DE0007231326, DE0007231334, DE000A1K0656
indexes: SDAX, CDAX, Classic All Share
stockmarkets: free trade: Hannover, Berlin, München, Hamburg, Düsseldorf,
Stuttgart, regulated dealing/prime standard: Frankfurt
language: English