We believe that with a total of approximately 97.41 thousand leasing, service and fleet
management contracts as of December 31, 2014 and combined revenue and EBT in 2014 of A575.0 million and A25.6 million, respectively, we are one of the leading manufacturer- independent full-service vehicle leasing providers and vehicle fleet managers in Germany. We also have operations in Austria, Switzerland, France and The Netherlands, which constitute approximately 8.22 thousand contracts (as of December 31, 2014) of our overall contract
portfolio. We offer our corporate customers both full-service leasing solutions (Fleet Leasing) and pure-play fleet management and consulting solutions (Fleet Management). Through our website, sixt-neuwagen.de, we also offer private and business customers (up to 20 vehicles) vehicle leasing solutions, including our leasing product vario-financing (Online Retail).
We operate primarily in the German vehicle leasing market and organize our business operations in two reporting segments:
• Leasing Business Unit. The Leasing Business Unit includes our Fleet Leasing and Online Retail businesses:
• Fleet Leasing. Our Fleet Leasing business, which is the largest of our businesses by number of contracts, offers leasing contracts and associated services to corporate customers. In addition to generating revenue from leasing vehicles to customers, our Fleet Leasing business provides a number of additional services, some of which it sources from Sixt SE or certain of its subsidiaries (Sixt SE and its predecessors, together with its consolidated subsidiaries, being referred to as the ‘‘Sixt SE Group’’ and excluding the Sixt Leasing Group, the ‘‘Sixt SE Group (excluding Leasing)’’). Revenue from providing these services, which include vehicle maintenance, tire replacements, accident service packages and the management of vehicle insurance, fuel cards, vehicle taxes, and radio license fees, is also shown as leasing revenue. Our Fleet Leasing business also generates revenue from selling used vehicles we have previously leased to customers.
1 Including 5.2 thousand new contracts for which the leased vehicle had not been delivered to the customer. These new contracts include follow-on contracts with existing customers, which were concluded before expiration of the existing contract and redelivery of the currently leased vehicle. In such cases, both the existing and the new contract are included in the total contract numbers we report. Furthermore, the 97.4 thousand contracts (2014) include 7.2 thousand (2014) pure service contracts.
2 Including 0.4 thousand new contracts for which the leased vehicle had not been delivered to the customer. These new contracts include follow-on contracts with existing customers, which were concluded before expiration of the existing contract and redelivery of the currently leased vehicle. In such cases, both the existing and the new contract are included in the total contract numbers we report. Furthermore, the 8.2 thousand contracts (2014) include 0.7 thousand (2014) pure service contracts.
More than 89%1 of the Fleet Leasing contracts we were servicing as of December 31,
2014 involve the provision of at least one service in addition to the lease itself and so provide us with revenue from both leasing and the provision of additional services. In certain cases, such as when we hope to enter into a future leasing relationship, our Fleet Leasing business provides fleet management and other additional services to customers that do not lease any vehicles from us. Payments received for such services are also recorded under leasing revenue.
• Online Retail. Our Online Retail business, which is the smallest of our businesses by number of contracts, offers private and business customers (up to 20 vehicles) leasing services via our online platform, sixt-neuwagen.de, which allows our customers to configure an extensive selection of the latest vehicle models from over 30 car manufacturers. Like our Fleet Leasing business, our Online Retail business generates revenue primarily from leasing vehicles and from selling vehicles that have previously been leased to customers. Approximately 27%2 of the Online Retail contracts we were
servicing as of December 31, 2014 involve the provision of at least one additional service, and we aim to increase the revenue we generate from the provision of such services in the future.
As the majority of our leases are operating leases, the Leasing Business Unit includes the vehicles that it leases to customers as lease assets on its balance sheet, which results in the Leasing Business Unit having significantly more assets than the Fleet Management Business Unit. See ‘‘—10.12 Significant Accounting Policies—10.12.1 Lease Assets’’ and ‘‘14 Regulatory Environment—14.1 Leasing Contracts’’ for a description of the difference between operating leases and finance leases.
In 2014, leasing revenue amounted to A387.5 million (2013: A378.3 million) and A23.5 million in EBT (2013: A20.5 million), representing 90.6% of our operating revenue (2013: 93.9%) and 91.8% of our total EBT (2013: 99.0%). As of December 31, 2014, the Leasing Business Unit had segment assets of A1,052.5 million (December 31, 2013: A914.6 million).
• Fleet Management Business Unit. The Fleet Management Business Unit provides fleet management services through Sixt Mobility Consulting GmbH, which manages and optimizes fleets for customers from varying industries and of different sizes, ranging from mid-sized companies to international corporations, with our target fleet size being 300 vehicles or more.
The Fleet Management Business Unit generates revenue primarily from management fees, service fees and handling fees for selling customers’ used vehicles, which it records under fleet management revenue. In addition, the Fleet Management Business Unit generates revenue by reselling vehicles it purchases from its customers, which it records under sales revenue. Many of the services provided by the Fleet Management Business Unit are sourced from other subsidiaries of Sixt SE, with the Fleet Management Business Unit sometimes acting as a re-seller of these services.
As the Fleet Management Business Unit only provides services, it does not generally record any vehicles as lease assets on its balance sheet.
In 2014, we generated A40.4 million in fleet management revenue (2013: A24.8 million) and A2.2 million in EBT (2013: A0.3 million), representing 9.5% of our operating revenue (2013: 6.2%) and 8.6% of our total EBT (2013: 1.4%). As of December 31, 2014, the Fleet Management Business Unit had segment assets of A29.0 million (December 31, 2013: A20.0 million).
1 Excluding order book. 2 Excluding order book.