DGAP-News: VTG Aktiengesellschaft / Key word(s): Quarterly / Interim Statement VTG AG makes a very bright start to the 2018 financial year - Positive developments in all three divisions 17.05.2018 / 07:30 The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- VTG AG makes a very bright start to the 2018 financial year - Positive developments in all three divisions - Revenue up by around 5% - EBITDA jumps 16% - Group net profit over 31% higher year on year - Earnings per share (EPS) up 42% to EUR 0.47 - Logistics divisions maintain positive trend - Railcar capacity utilization remains above 92% Hamburg, May 17, 2018. VTG Aktiengesellschaft (WKN: VTG999), one of the leading railcar leasing and rail logistics companies in Europe, has made a very bright start to the 2018 financial year. At EUR 255.1 million, first-quarter Group revenue was 4.6 percent up on the same period a year ago (EUR 243.8 million). EBITDA jumped sharply by 16.1 percent to EUR 88.9 million (Q1 2017: EUR 76.6 million). Group net profit too was substantially higher at EUR 16.6 million (Q1 2017: EUR 12.7 million). Earnings per share (EPS) likewise increased very significantly, improving from EUR 0.33 in the first quarter of 2017 to EUR 0.47 in the period under review. "We are very satisfied with our results for the first quarter of 2018. Once again, we were able to increase our revenue, EBITDA, Group net profit and earnings per share," says Heiko Fischer, Chairman of the Executive Board of VTG AG. "This marks a continuation of the positive development we saw in the second half of 2017. In particular, we are benefiting from a persistently favorable economic climate, the associated high utilization of our fleet capacity and comparatively low maintenance costs in our Railcar Division. The Logistics Divisions too are experiencing further positive development and increasing their earnings." Railcar: Revenue and EBITDA increasing - Capacity utilization remains at record levels In the first three months of the 2018 financial year, the Railcar Division posted revenue of EUR 135.0 million (Q1 2017: EUR 125.6 million). This figure marks a year-on-year gain of 7.6 percent and is largely attributable to very high capacity utilization in all railcar segments. At the same time, the enlargement of the fleet in 2017 also had a positive impact on revenue development. EBITDA rose faster than revenue, increasing by 16.8 percent to EUR 89.0 million (Q1 2017: EUR 76.2 million). This was because the number of railcars hired out increased, while maintenance costs were lower. As a result, the EBITDA margin (based on revenue) was up by 5.2 percentage points to 65.9 percent compared to the first three months of 2017 (60.7 percent). Fleet capacity utilization rose to its highest level since the end of 2008 and stood at 92.2 percent (Q1 2017: 90.3 percent). Capital expenditure of EUR 63.4 million in the first quarter of 2018 was about twice as high as in the same period a year ago (EUR 31.7 million). The acquisition of new railcars - mostly in Europe and, to a smaller extent, in Russia - was the main reason for this increase. Significant growth in EBITDA at Rail Logistics and Tank Container Logistics The Rail Logistics Division recorded revenue of EUR 78.9 million in the first quarter of 2018, a figure virtually unchanged from that of the same period a year ago (EUR 79.2 million). Lower transportation and leasing costs nevertheless enabled the division to improve its gross profit. Higher gross profit in turn drove EBITDA up by 31.4 percent to EUR 2.1 million (Q1 2017: EUR 1.6 million). Accordingly, the EBITDA margin for Rail Logistics, which is based on gross profit, rose by 3.1 percentage points to 25.9 percent in the first quarter of 2018, compared to 22.8 percent in the first three months of 2017. Healthy capacity utilization in the chemical industry in Europe once again boosted the number of consignments transported by Tank Container Logistics. Unlike in 2017, though, transportation prices remained stable or even increased slightly, causing revenue to increase by 5.6 percent to EUR 41.2 million compared to the first quarter of 2017 (EUR 39.0 million). Lower leasing and maintenance costs for tank containers played a part in pushing EBITDA up by 30.6 percent to EUR 3.2 million (Q1 2017: EUR 2.4 million). The EBITDA margin (based on gross profit) thus improved by 10.1 percentage points to 39.4 percent (Q1 2017: 29.3 percent). VTG Executive Board confirms forecast for 2018 In light of generally positive global economic conditions and forecast economic expectations, the Executive Board stands by its expectation of positive revenue and EBITDA development for the VTG Group in 2018. Accordingly, Group revenue should be slightly higher than the prior year's figure of EUR 1,014 million. Earnings before interest, taxes, depreciation and amortization (EBITDA) are projected to be in a corridor from EUR 340 million to EUR 370 million. On July 1, 2017, VTG announced its intention to acquire all shares in CIT Rail Holdings (Europe) SAS - and hence the Nacco Group - from the American CIT Group. At the end of March, the relevant antitrust authorities approved the transaction subject to certain conditions. Of the Nacco business it intends to buy, VTG is thus obliged to sell around 30 percent in advance to third parties. Only when this sale has been closed will VTG be authorized to take over the Nacco Group's remaining 10,000 or so freight cars. At the present time, there is no way to reliably assess either the timing of this process or how it might affect earnings in the 2018 financial year. It follows that all statements on business expectations in this quarterly report exclude any effects from the planned takeover of the Nacco Group. Key figures for the VTG Group 1.1. - 1.1. - Chang- 31.03. 31.03. e Financial Year 2018 2017 in % Revenue in EUR million 255.1 243.8 4.6 EBITDA in EUR million 88.9 76.6 16.1 EBIT in EUR million 42.1 29.5 42.8 EBT in EUR million 23.8 18.8 26.6 Group profit in EUR million 16.6 12.7 31.3 Depreciation and amortization in EUR 46.8 47.1 -0.7 million Capital expenditure in EUR million 63.4 31.7 99.8 Operating cash flow in EUR million 64.6 50.0 29.1 Earnings per share in EUR 0.47 0.33 42.4 Railcar division Revenue in EUR million 135.0 125.6 7.6 EBITDA in EUR million 89.0 76.2 16.8 EBITDA margin in % 65.9 60.7 Rail Logistics division Revenue in EUR million 78.9 79.2 -0.5 EBITDA in EUR million 2.1 1.6 31.4 EBITDA margin in % 25.9 22.8 Tank Container Logistics division Revenue in EUR million 41.2 39.0 5.6 EBITDA in EUR million 3.2 2.4 30.6 EBITDA margin in % 39.4 29.3 Chang- e 31.03.2018 31.03.2017 in % Number of employees 1,536 1,439 6.7 - in Germany 1,062 966 9.9 - abroad 474 473 0.2 Chang- e 31.03.2018 31.12.2017 in % Balance sheet total in EUR million 3,080.6 3,085.5 -0.2 Non-current assets in EUR million 2,746.8 2,746.4 0.0 Current assets in EUR million 333.8 339.1 -1.6 Shareholders equity in EUR million 821.4 800.1 2.7 Liabilities in EUR million 2,259.2 2,285.4 -1.1 Equity ratio in % 26.7 25.9 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 2017, VTG generated revenue of EUR 1,014 million and operating profit (EBITDA) of EUR 343 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 2017, VTG had 1,500 employees worldwide. VTG AG is listed on the official Prime Standard market of the Frankfurt Stock Exchange and also on the SDAX (WKN: VTG999). Press contact: Gunilla Pendt Head of Corporate Communications Telephone: +49 (0) 40 23 54-1341 Fax: +49 (0) 40 23 54-1340 E-mail: [email protected] Investor relations contact: Christoph Marx Head of Investor Relations Telephone: +49 (0) 40 23 54-1351 Fax: +49 (0) 40 23 54-1350 E-mail: [email protected] More information at www.vtg.com --------------------------------------------------------------------------- 17.05.2018 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. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de --------------------------------------------------------------------------- Language: English Company: VTG Aktiengesellschaft Nagelsweg 34 20097 Hamburg Germany Phone: 040 2354 1351 Fax: 040 2354 1350 E-mail: [email protected] Internet: www.vtg.de ISIN: DE000VTG9999 WKN: VTG999 Indices: SDAX Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange End of News DGAP News Service --------------------------------------------------------------------------- 686647 17.05.2018