Financial News

05/April/2016

DGAP-News: VTG Aktiengesellschaft: VTG breaks the billion Euro barrier for the first time


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

2016-04-05 / 10:03
The issuer is solely responsible for the content of this announcement.


Press Release

VTG breaks the billion Euro barrier for the first time

- Company revenue rises to EUR 1.03 billion

- EBITDA improves by 76.2 percent to EUR 336.5 million

- Railcar Division finds new strength in the market after the integration of AAE

- Logistics entities demonstrate an upward trend

- Dividend increase of 11 percent proposed

- Milestones for the future set

Hamburg, 5 April 2016. VTG Aktiengesellschaft (WKN: VTG999), one of Europe's leading wagon hire and rail logistics companies, ended the 2015 business year with very successful developments in terms of revenue and EBITDA. Furthermore, the company was also able to lay important foundations for future successes. Today, the Hamburg concern presented its audited figures for 2015, according to which Group revenue increased by 25.6 percent to EUR 1,027.5 million. Operating profit (EBITDA) rose by a total of 76.2 percent, to EUR 336.5 million.

"We have achieved all our expectations regarding business development for the year 2015. Today, we have a clearly strengthened business model and very good conditions for our future development," said Dr. Heiko Fischer, CEO of VTG Aktiengesellschaft. "Alongside the acquisition of AAE, many other factors have contributed to this success, such as refinancing, the strengthening of the logistics departments and the definition of our medium-term objectives up to 2018. We embrace the challenges the markets and our clients present us with and feel well prepared for the future."

Company result increases over-proportionately
Earnings before interest and taxes (EBIT), experienced a significant 72.7 percent rise in 2015, from EUR 83.5 million to 144.1 million. Even the earnings before taxes (EBT) increased by a clear 54.1 percent, from EUR 29.8 million to EUR 45.9 million. Contained within this are unique one-time effects stemming from the AAE acquisition, the costs of refinancing and currency impact, above all from the Russian Ruble. After the consideration of positive one-time effects, these expenses burdened the pre-tax result with EUR 15.5 million. Despite these one-off burdens, the company result of EUR 29.4 million was 56.7 percent higher than that of the previous year (2014: EUR 18.8 million). Deducting the costs of a hybrid bond and other minorities, EUR 21.6 million of this was for the VTG shareholders. These one-off costs, together with the increased number of shares resulting from the acquisition of AAE, led to, as expected, a per share result which was under the previous year's value. Adjusted to accommodate the positive and negative one-time effects, the result per share was, however, clearly higher at EUR 1.02 (previous year: EUR 0.93). The equity ratio amounted to 24.6 percent on December 31, 2015 (previous year: 20.3 percent).

The Railcar Division in Europe positions itself as VTG Rail Europe GmbH
Revenue in the Railcar Division increased by 55.5 percent, from EUR 345.4 million to EUR 537.2 million. EBITDA improved even more clearly, by 72.5 percent, from EUR 194.4 million to EUR 335.4 million. Correspondingly, the EBITDA margin related to revenue was higher at 62.4 percent than the previous year's (56.3 percent). The utilization rate of the fleet, 90.6 percent, was just a little under that of the previous year (2014: 91.0 percent), yet it was higher than in the previous quarter (89.6 percent).

The division's positive results are a particular consequence of the AAE acquisition, however good business development and further investments in the expansion of the fleet were also contributing factors. For the most part, the integration of the about 30,000-wagon AAE fleet is complete. In the future, the division will package its hiring activities in continental Europe under the name VTG Rail Europe GmbH. Additionally, at the end of the year, VTG purchased the remaining parts from the Russian joint venture Vagonpark, which was undertaken as part of the AAE acquisition at the start of 2015. The aim is to integrate the former AAE subsidiary into the existing business in Russia and, with it, realize synergies.

Rail Logistics and Tank Container Logistics show a positive trend
The Rail Logistics Division was able to return to the winners' circle in 2015. Revenue increased by 0.6 percent, from EUR 322.0 million to EUR 324.0 million. EBIDTA showed a clear increase to EUR 3.4 million, after having experienced a slight loss of EUR 0.2 million in the previous year. The EBITDA margin related to gross profits increased by 12.2 percent (previous year: -0.9 percent). At the end of the year, the remaining 30 percent of the joint venture with Kuehne + Nagel was acquired. This makes VTG the sole shareholder of the largest private rail logistics company in Europe - VTG Rail Logistics.

The Tank Container Logistics Division was also able to improve its business development in 2015. European transports increased, improved processes enabled increased transport volumes, one-off earnings and a stronger American dollar supported this upward trend. This led to a 10.2 percent increase in revenue for Tank Container Logistics, to EUR 166.3 million (previous year: EUR 150.9 million). At EUR 13.6 million, EBITDA was 6.5 percent higher than in the previous year (2014: EUR 12.8 million). Remaining at 47.4 percent, the EBITDA margin related to gross profits was slightly below that of the previous year (2014 adj.: 49.3 percent).

Dividends increase by 11 percent, VTG 4.0 emerges
The VTG Aktiengesellschaft Executive Board expects additionally good business developments for 2016. It anticipates revenue of between EUR 1.03 and 1.07 billion as well as an EBITDA of between EUR 345 and 355 million. In addition, the Executive Board intends to propose the payment of a dividend in the amount of EUR 0.50 to the 2016 Annual General Meeting. This corresponds to an increase of 11 percent compared to the previous year.

The focus of company development in 2016 and beyond is on the topics of innovation, digitalization and the simplification of structures and processes under the key heading VTG 4.0. An example of innovation is the wagon, presented in 2015, for the transportation of liquefied natural gas - LNG. Where digitalization is concerned, VTG is developing new concepts for optimizing maintenance on the basis of wagon tracing. Regarding the simplification of structures and processes, there is currently a European uniform system for service provision and services in the Railcar Division.

Key figures for the VTG Group

Financial Year 2015 2014 Change
in %
Revenue in EUR million 1,027.5 818.3 25.6
EBITDA in EUR million 336.5 191.0 76.2
EBIT in EUR million 144.1 83.5 72.7
EBT in EUR million 45.9 29.8 54.1
Group profit in EUR million 29.4 18.8 56.7
Depreciation and amortization
in EUR million
192.4 107.5 78.9
Capital expenditure in EUR million 195.8 219.2 -10.7
Operating cash flow in EUR million 282.9 159.9 77.0
Earnings per share in EUR
Earnings per share in EUR adjusted
0.75
1.02
0.93
0.93
-19.4
9.7
Railcar division      
Revenue in EUR million 537.2 345.4 55.5
EBITDA in EUR million 335.4 194.4 72.5
EBITDA margin in % 62.4 56.3  
Rail Logistics division      
Revenue in EUR million 324.0 322.0 0.6
EBITDA in EUR million 3.4 -0.2 >1,000
EBITDA margin in % 12.2 -0.9  
Tank Container logistics division      
Revenue in EUR million 166.3 150.9 10.2
EBITDA in EUR million 13.6 12.8 6.5
EBITDA margin in % 47.4 49.3  
  31.12.2015 31.12.2014 Change
in %
Number of employees 1,445 1,312 10.1
- in Germany 942 909 3.6
- abroad 503 403 24.8
  31.12.2015 31.12.2014 Change
in %
Balance sheet total in EUR million 3,047.1 1,673.4 82.1
Non-current assets in EUR million 2,708.1 1.418.2 91.0
Current assets in EUR million 339.0 255.2* 32.8
Shareholders equity in EUR million 748.2 340.5 119.7
Liabilities in EUR million 2,298.9 1,332.9 72.5
Equity ratio in % 24.6 20.3  
 

*Including non-current assets held for sale

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 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 2015, VTG generated revenue of EUR 1,027.5 million and operating profit (EBITDA) of EUR 336.5 million. Via its subsidiaries and affiliates the company, which has its head office in Hamburg, is mainly present in Europe, North America, Russia and Asia. As at 31 December 2015, VTG had 1,445 employees worldwide in consolidated companies. VTG AG is 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
Email: monika.gabler@vtg.com

Investor Relations contact:
Christoph Marx
Head of Investor Relations
Telephone: +49 (0) 40 23 54-1351
Fax: +49 (0) 40 23 54-1350
Email: christoph.marx@vtg.com

More information at www.vtg.com



2016-04-05 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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