Sixt Leasing SE retains positive outlook on business growth after record revenue in 2017 and the successful launch of the 'DRIVE>2021' strategy programme
- Sixt Leasing releases 2017 Annual Report recording record revenue and a significant increase of its contract portfolio
- Supervisory Board approves Managing Board plan to propose a stable dividend for the fiscal year 2017 at Annual General Meeting
- 'DRIVE>2021' strategy programme to form the basis for even stronger and more profitable growth in the future in the 2018 fiscal year
- Contract portfolio, revenue and earnings expected to increase significantly by the end of 2021
Pullach, 17 April 2018 - Sixt Leasing SE, market leader in online sales of new vehicles and specialist in management and full-service leasing for large fleets, has released its Annual Report for 2017 today and retains its positive outlook on business growth after record revenue in 2017 and the successful launch of the 'DRIVE>2021' strategy programme. Thus, the Managing Board is confident of laying the foundation for even stronger and more profitable growth in the future in the 2018 fiscal year and thereby achieving the 'DRIVE>2021' growth targets over the next four years as planned.
Therefore, the Managing Board continues to expect an increase of at least 60 per cent in the Group's contract portfolio to more than 220,000 contracts and a growth of consolidated revenue of at least one third to more than EUR 1 billion by the end of the 2021 fiscal year, with operating revenue increasing by 50 per cent to around EUR 700 million. The Managing Board is also maintaining its assumption that earnings before interest, taxes, depreciation and amortisation (EBITDA) and consolidated earnings before taxes (EBT) will each rise by around two thirds to around EUR 400 million and around EUR 50 million respectively by the 2021 fiscal year, with the operating return on revenue (EBT/operating revenue) therefore amounting to around 7 per cent in 2021.
Thomas Spiegelhalter, CEO of Sixt Leasing SE: "Our successfully launched 'DRIVE>2021' strategy programme stands for Digitalisation, Risk management, Internationalisation as well as Volume and Earnings growth up to the year 2021. The aim of 'DRIVE>2021' is to increase the pace of digitalisation, to improve our risk-return profile, to further push ahead with internationalisation and to significantly increase the contract portfolio as well as earnings. The measures we have initiated have already shown a positive effect and make us confident of achieving our ambitious growth targets by the end of fiscal year 2021."
This outlook is based on the figures presented in the 2017 Annual Report, which Sixt Leasing SE has published and made available for download at ir.sixt-leasing.de/annual-reports today. The report shows no deviations from the preliminary annual figures already released in March.
Fiscal year 2017
In fiscal year 2017, the Group's contract portfolio in Germany and abroad (excluding franchise and cooperation partners) increased significantly by 17.0 per cent to 132,900 contracts compared to the previous year. The biggest growth driver was the Online Retail business field with a 65.6 per cent increase in the contract portfolio. The Fleet Leasing and Fleet Management business fields saw slight increases of 1.2 per cent and 1.9 per cent respectively.
Consolidated revenue climbed by 4.2 per cent to reach a record amount of EUR 744.0 million. The Group's operating revenue (excluding sales revenue) improved by 5.7 per cent to EUR 454.4 million and thereby achieved a new record, too. Sales revenue from leasing returns and marketed customer vehicles saw a slight increase of 2.0 per cent to EUR 289.6 million.
EBITDA increased slightly by 2.5 per cent to EUR 234.3 million while EBT decreased by 5.9 per cent to EUR 29.7 million as expected. As a result, the operating return on revenue fell slightly by 0.8 percentage points to 6.5 per cent, but at the same time remained above the target figure of 6.0 per cent. The equity ratio amounted to 14.2 per cent, down from 16.6 per cent in the previous year, and was thus also further above the minimum target of 14.0 per cent. Gross cash flow improved by 11.2 per cent to EUR 216.7 million. Investments in lease assets significantly increased by 31.3 per cent to EUR 619.2 million. The financial result improved noticeably by 16.8 per cent to EUR -16.2 million due to the repayment of a portion of the Core Loan in the amount of EUR 300 million to Sixt SE.
Consolidated net profit declined by 15.2 per cent to EUR 20.9 million. Nevertheless, the Supervisory Board has approved the Managing Board's plan to propose a stable dividend of EUR 0.48 per share for the fiscal year 2017 to the Annual General Meeting on 19 June 2018.
The Managing Board continues to expect a slight increase in the Group's contract portfolio, consolidated operating revenue and EBITDA for the fiscal year 2018. 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 per cent target. Moreover, the Managing Board continues to expect the Online Retail business field to become the largest business field within the Sixt Leasing Group as measured by contract portfolio size.
Thomas Spiegelhalter: "The future of mobility is digital. For this reason, the digitalisation of new vehicle sales through our dynamically growing Online Retail business field will play a key role in the implementation of 'DRIVE>2021'. In the current fiscal year, Online Retail will already be the business field with the largest contract portfolio in the Sixt Leasing Group."
About Sixt Leasing:
Sixt Leasing SE (WKN: A0DPRE / ISIN: DE000A0DPRE6) based in Pullach near Munich is a market leader in online sales of new vehicles as well as a specialist in management and full-service leasing of large fleets. With tailor-made solutions, the company enables the longer-term mobility of its private and corporate customers.
Private and commercial customers use the online platforms sixt-neuwagen.de and autohaus24.de to lease new vehicles affordably. Corporate customers benefit from the cost-saving leasing of their vehicle fleet and from efficient fleet management.
Sixt Leasing SE has been listed in the Regulated Market of the Frankfurt Stock Exchange (Prime Standard) since 7 May 2015. In fiscal year 2017, the Group generated consolidated revenue of EUR 744 million.
Sixt Leasing SE
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