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DGAP-News: VTG Aktiengesellschaft: VTG announces medium-term objectives for growth and profitability

DGAP-News: VTG Aktiengesellschaft / Key word(s): Miscellaneous

2015-09-22 / 08:00

Press Release

VTG announces medium-term objectives for growth and profitability

- Period of development from 2010 to 2015 successfully concluded

- Executive and Supervisory Board establish measures to improve competitiveness

- Transformation of Railcar Division in course of AAE integration

- Strengthening of logistics divisions

- Decreasing financing costs and leaner administrational structures also deliver increase in profitability

- Earnings per share set to almost triple to EUR2.50 by 2018

Hamburg (Germany), 22nd September 2015. The Executive and Supervisory Board of VTG Aktiengesellschaft (WKN: VTG999), of which new major shareholder Andreas Goer has been a member since May 2015, established - during a strategy meeting held last week - new medium-term growth and profitability objectives for the coming years. With the period of development running from 2010 to 2015 now successfully concluded, a previously deployed battery of measures will now be used to reinforce VTG's competitiveness in the long term. One part of this plan consists of further investment into the wagon fleet. Another part envisages synergies resulting from the AAE takeover, along with a simplification of the processes and structures of the European wagon-hire business. VTG also expects current refinancing operations to start reducing the company's financial costs significantly as early as next year. Working on the basis of measures already being deployed up to 2018, the Executive Board has set itself a goal of achieving earnings per share (EPS) of EUR2.50, thereby almost tripling the 2014 value of EUR0.93.

"We have, with the takeover of AAE earlier this year, already laid the foundations for our future success", declares Dr. Heiko Fischer, Chairman of the Executive Board at VTG AG. "Our growth target involving an increase in EBITDA in excess of 50% during the now-concluded development period dubbed "VTG 3.0" has been well exceeded, thanks not least to the acquisition of AAE. Our goal now, with "VTG 4.0", is to give the enlarged VTG Group the greater agility and flexibility that it needs to tackle its current challenges. Our declared objective is to ensure that VTG focuses on customers' needs even more, while making the organization yet more efficient. Currently low rates of interest mesh nicely with our plans in this respect."

Our core business wagon-hire is remaining our key driving force for growth and profitability in the next years. VTG plans to carry on expanding its wagon fleet, which is the largest privately-owned one in Europe. Our European hiring business is also being realigned in the course of the integration of AAE. In future, Railcar Europe is set to become more centralized in terms of procurement, operational management and administration. This will involve incorporating the activities of many nationally based businesses into VTG Rail Europe GmbH. Thereby our European hiring operation will be uniformly controlled. This new organization, with its focus on four strategic fleet segments, will align stronger with the needs of the market in terms of sales activities, while making the management of our now 75,000 wagon strong European fleet more efficient. The potential that this supposes is set to improve VTG's profitability significantly, from inside out, over the coming years.

As a result of a new financing of a large part of VTG's financial liabilities the company should also benefit from improved terms in form of a noticeable drop in interest costs. This new financing deal should be concluded by the beginning of next year, allowing improved financial results taking effect quickly.

The Executive Board also sees further potential in the stronger mutual networking of logistics divisions and the Railcar Division. Certain implemented projects are already delivering initial success in this respect.

The targets that VTG has set itself in terms of growth and profitability are designed to ensure that the company reinforces its market position in the coming years, while establishing key milestones of future achievement.

About VTG:

VTG Aktiengesellschaft is one of Europe's leading wagon hire and rail logistics companies, with a fleet consisting of more than 80,000 railcars. VTG offers a full-range service, providing rail tank cars, intermodal wagons, standard freight wagons and sliding wall wagons. In addition to the hiring of wagons, the Group offers comprehensive multi-modal logistics services, mainly around rail transport, and global tank container transports.

With the combination of its three interlinked divisions Railcar, Rail Logistics and Tank Container Logistics, VTG offers its customers a high-performance platform for international transport of their freight. The Group has many years of experience and specific expertise, in particular in the transport of liquid and sensitive goods. Its customers include numerous well-known companies from almost every industrial sector, for example the chemical, petroleum, automotive, paper and agricultural industries.

In the financial year 2014, VTG generated revenue of EUR 818.3 million and operating profit (EBITDA) of EUR 191.0 million. Via its subsidiaries and affiliates the company, which has its head office in Hamburg, is mainly present in Europe, Asia, Russia and North America. As at 31 December 2014, VTG had 1,312 employees worldwide in consolidated companies. Since June 2007, VTG AG has been listed on the official Prime Standard market of the Frankfurt Stock Exchange and also on the SDAX (WKN: VTG999).

Press contact:

Monika Gabler

Head of Corporate Communications

Telephone: +49 (0) 40 23 54-1341

Fax: +49 (0) 40 23 54-1340


Investor Relations contact:

Christoph Marx

Head of Investor Relations

Telephone: +49 (0) 40 23 54-1351

Fax: +49 (0) 40 23 54-1350


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2015-09-22 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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