B. Results of operations, net assets and financial position
4. Earnings development
Other operating income reached EUR 21.0 million, down 6.6% on the prior-year figure (EUR 22.5 million).
Expenses reported under “fleet expenses and cost of lease assets” comprise the following:
..
Expenses for the rental and leasing fleets during the useful lives of the vehicles (e.g. fuel,transport costs, insurance, motor vehicle taxes, vehicle maintenance, repairs)
..
Expenses for the sale of leasing vehicles (residual carrying amounts of vehicles as well as sales-related costs of vehicle preparation).Fleet expenses and cost of lease assets fell by 7.4% from EUR 746.4 million in the previous year to EUR 691.4 million in 2009. This decline is due primarily to the reduction in the rental fleet. In addition, expenses were reduced by the sale of fewer used leasing vehicles, which led to correspondingly lower expenses from the disposal of residual values. Fuel costs, transport costs and taxes also declined, while the cost of maintenance and repairs increased slightly.
Personnel expenses climbed by 3.6% to EUR 134.1 million (2008: EUR 129.4 million). The increase reflects the growth of the workforce in the Group’s operational areas in the previous year. To improve service quality in the vehicle rental area Sixt also took on staff in the year under review who were previously employed in partner companies.
Consolidated revenue
thereof consolidated operating revenue1
Fleet expenses and cost of lease assets Personnel expenses
Depreciation and amortisation expense Net other operating income/expense
Earnings before net finance costs and taxes (EBIT) Net finance costs
Profit before taxes (EBT) Income tax expense
Consolidated profit for the period Earnings per ordinary share 2(EUR)
1,773.9 1,526.9 746.4 129.4 416.9 326.3 154.9 -68.2 86.7 25.3 61.4 2.43 1,601.5 1,368.3 691.4 134.1 404.8 304.2 67.0 -51.9 15.1 4.7 10.4 0.40 -172.4 -158.6 -55.0 +4.7 -12.1 -22.1 -87.9 +16.3 -71.6 -20.6 -51.0 -2.03 Consolidated income statement (condensed)
in EUR million 2009 2008 -9.7 -10.4 -7.4 +3.6 -2.9 -6.8 -56.7 +23.8 -82.6 -81.3 -83.1 -83.5 Change in % Absolute change
1 Not including proceeds from the sale of used leasing vehicles 2 Basic earnings, based in 2009 on 25.2 million shares (weighted),
Depreciation and amortisation expense amounted to EUR 404.8 million, down 2.9% on the prior- year figure of EUR 416.9 million. Depreciation of rental vehicles in particular decreased sharply (-13.3% to EUR 235.4 million) due to the reduction of the rental fleet. In contrast, depreciation of lease assets rose by 17.2% to EUR 161.2 million as a result of a larger volume of on-balance-sheet financing than in the previous year, and because residual values in new business were adjusted in line with the used vehicle market.
Other operating expenses were reduced by 6.8% to EUR 325.2 million (2008: EUR 348.9 million). A key factor here was the decline in lease instalments as fewer vehicles were financed by leases. For 2009, the Sixt Group’s earnings before net finance costs and taxes (EBIT) were EUR 67.0 million – 56.7% lower than the previous year’s figure of EUR 154.9 million. The first quarter of 2009 in particular was still impacted by additional fleet costs, as the reduction in the rental fleet that was instituted at the end of 2008 took time to take effect. The positive effects of Sixt’s cautious fleet policy then increased as the year continued. Earnings were also boosted by successive price increases in the vehicle rental area and by the adjustment of the terms and conditions of some customer lease agreements.
The EBIT margin – expressed in relation to consolidated operating revenue – declined to 4.9% from the previous year’s 10.1%.
Net finance costs improved by 23.8% from EUR -68.2 million to EUR -51.9 million. The decline in interest expense to EUR 60.2 million is mainly due to the positive effects of the reduction in the rental fleet and the utilisation of lower short-term interest rates in the year under review. Other net finance costs, which increased to EUR 5.5 million, include net income from derivative financial instruments. The latter amounted to EUR 3.4 million in the year under review, compared with EUR -0.4 million in 2008.
Consolidated profit before taxes (EBT) was EUR 15.1 million, down EUR 71.6 million or 82.6% on the prior-year figure (EUR 86.7 million). The Group achieved its communicated target for the year of clearly positive EBT. Its quarterly results increased in the course of the year due to the operational adjustments. Whereas the Group recorded a substantial loss in the first quarter, EBT in the fourth quarter clearly exceeded the 2008 figure.
The EBT margin – expressed in relation to consolidated operating revenue – declined from 5.7% to 1.1%.
Income tax expense amounted to EUR 4.7 million (2008: EUR 25.3 million). This figure includes deferred taxes of EUR 0.5 million (2008: EUR 3.2 million). The tax rate (calculated on the basis of EBT) was 31.1% (2008: 29.2%).
The Sixt Group reported consolidated profit for financial year 2009 of EUR 10.4 million (2008: EUR 61.4 million). As in the previous year, minority interests were marginal. As a result, consolidated profit after taxes and minority interests was only slightly different, at EUR 10.4 million (2008: EUR 61.5 million).
Earnings per share (basic) for the year under review amounted to EUR 0.40 per ordinary share, compared with EUR 2.43 in 2008. Earnings per preference share were EUR 0.42 (2008: EUR 2.48). Earnings per share were not diluted as at the reporting date. In the previous year, diluted earnings amounted to EUR 2.43 per ordinary share and EUR 2.42 per preference share.