DGAP-News: VTG Aktiengesellschaft / Key word(s): Quarterly / Interim Statement/Half Year Results VTG continues positive development - All relevant Group indicators improved in the first half of 2018 14.08.2018 / 07:30 The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- VTG continues positive development - All relevant Group indicators improved in the first half of 2018 - Revenue up by 3 percent - Strong increase in EBITDA - Earnings per share up year on year - Further increase in Railcar capacity utilization - Positive development at Tank Container Logistics - Morgan Stanley Infrastructure announces takeover bid Hamburg, August 14, 2018. VTG Aktiengesellschaft (WKN: VTG999), one of the leading railcar leasing and rail logistics companies in Europe, carried its very bright start to the year over into the second quarter of 2018 and can now look back on a successful first six months. Group revenue went up by 3 percent to EUR 513.8 million (H1 2017: EUR 498.8 million). Compared to the same period a year ago, EBITDA - before one-time charges for the ongoing Nacco takeover - increased by an impressive 8.3 percent to EUR 177.0 million (unadjusted figure: EUR 173.7 million; H1 2017: EUR 163.3 million). Also adjusted for Nacco-related expenses, earnings per share (EPS) were up by around 30 percent to EUR 0.96 in the first half of 2018 (H1 2017: EUR 0.74; H1 2018, unadjusted: EUR 0.76). This sustained positive development in the first half of 2018 is attributable above all to the increase in revenue and earnings in the Railcar Division. "Our results for the first half of 2018 pick up where we left off with the positive development seen in recent quarters," notes Dr. Heiko Fischer, Chairman of the Executive Board of VTG AG. "All relevant Group indicators have improved further. A large part was played by the sustained buoyant economic situation and associated stronger demand for our railcars and services." Railcar capacity utilization up again - Sharp improvement in revenue and EBITDA in the first half of 2018 The Railcar Division posted revenue of EUR 272.9 million in the first half of 2018, 7.4 percent higher than in the same period a year ago (EUR 254.1 million). The reason for this development was a further increase in fleet capacity utilization, which stood at 93.0 percent at the end of the first half of 2018 (H1 2017: 91.2 percent). Demand for intermodal railcars in particular made a positive contribution, while fleet expansion in the second half of 2017 also had a healthy impact. Due to better fleet capacity utilization and comparatively lower maintenance costs, EBITDA rose by a forceful 9.2 percent to EUR 177.5 million (H1 2017: EUR 162.6 million). Accordingly, the EBITDA margin edged up 1.1 percent to 65.1 percent (H1 2017: 64.0 percent). Capital expenditure of EUR 136.3 million in the first half of 2018 was lower than in the same period of the prior year (EUR 150.8 million). More than 90 percent of this sum was channeled into fixed assets in the Railcar Division. Tank Container Logistics: Revenue and EBITDA up Rail Logistics: EBITDA unchanged year on year The Tank Container Logistics Division ended the first half of 2018 with revenue 6.5 percent higher than in the prior year at EUR 83.1 million (H1 2017: EUR 78.1 million). Sustained high capacity utilization in Europe's chemical industry in particular prompted growth in transportation volumes. Intercontinental transports to and from Asia likewise experienced pleasing development. In the period under review, EBITDA improved faster than revenue, ending the first half-year at EUR 5.9 million - 14.5 percent higher than in the prior year. This gain was attributable to the gradual replacement of more than 1,000 rented tank containers with new equipment of our own, which reduced rental and maintenance costs. The gross-profit-based EBITDA margin accordingly improved by 10.3 percentage points to 45.0 percent (H1 2017: 34.7 percent). Revenue at the Rail Logistics Division declined by 5.3 percent to EUR 157.8 million in the first half of 2018 (H1 2017: EUR 166.6 million), primarily because of project delays, the loss of large orders and the rail strike in France. On the other hand, lower transportation costs led to a slight increase in gross profit. It was thus gratifying to see EBITDA, at EUR 3.3 million, reach the previous year's levels. The EBITDA margin for Rail Logistics, based on gross profit, was down 21.7 percent in the first half of 2018, after falling by 22.2 percent in the same period a year ago. Takeover bid announced by Morgan Stanley Infrastructure On July 16, after the mid-year balance sheet date, major VTG shareholder Morgan Stanley Infrastructure (MSI) announced a voluntary takeover bid that would offer shareholders EUR 53.00 in cash per share. Kühne Holding, hitherto VTG's second-largest shareholder, stated its willingness to offer its 20 percent stake to MSI. The Executive Board believes that, from a present perspective, the bid price reflects neither the fundamental value nor the full potential of the company, and that it is therefore inadequate. "I see the positive development of the first half-year as the fruit of our sustainable business model and our long-term corporate development strategy," explains Dr. Heiko Fischer. "Seen in this light, Morgan Stanley Infrastructure's desire to step up its commitment comes as a sign of recognition and respect." As soon as the bid documents are available, VTG will conduct an in-depth assessment to determine whether the bid is in the best interests of the company, its employees and its shareholders. Forecast for 2018 Bearing in mind that global economic conditions remain generally stable and in light of forecast economic expectations, the Executive Board stands by its expectation of positive revenue and EBITDA development for the VTG Group in 2018. Group revenue from VTG's existing activities should thus be slightly higher than a year ago (2017: EUR 1,014 million). Earnings before interest, taxes, depreciation and amortization (EBITDA) are expected to be in a corridor between EUR 340 million and EUR 370 million. On July 1, 2017, VTG announced its intention to buy all shares in CIT Rail Holding (Europe) SAS, the owner of the Nacco Group, off the American CIT Group. At the end of March, the relevant antitrust authorities approved the takeover subject to certain conditions. These conditions obliged VTG to sell around 30 percent of the Nacco business it intended to acquire to third parties in advance. Only after closure of this sale is VTG authorized to acquire the Nacco Group's remaining 10,000 or so freight cars. There is no way of reliably assessing the outcome of this process, either in terms of its timing or its possible impact on earnings in the 2018 financial year. For this reason, all statements about business expectations relate to developments excluding any effects from the planned takeover of the Nacco Group. Key figures for the VTG Group 1.1. - 1.1. - Chang- 30.06. 30.06. e Financial Year 2018 2017 in % Revenue in EUR million 513.8 498.8 3.0 EBITDA in EUR million 173.7 163.3 6.4 EBIT in EUR million 80.5 69.2 16.3 EBT in EUR million 40.0 39.3 1.8 Group profit in EUR million 28.0 27.5 1.9 Depreciation and amortization in EUR 93.2 94.1 -1.0 million Capital expenditure in EUR million 136.3 150.8 -9.6 Operating cash flow in EUR million 128.9 124.9 3.2 Earnings per share in EUR 0.76 0.74 2.7 Railcar division Revenue in EUR million 272.9 254.1 7.4 EBITDA in EUR million 177.5 162.6 9.2 EBITDA margin in % 65.1 64.0 Rail Logistics division Revenue in EUR million 157.8 166.6 -5.3 EBITDA in EUR million 3.3 3.3 0.5 EBITDA margin in % 21.7 22.2 Tank Container Logistics division Revenue in EUR million 83.1 78.1 6.5 EBITDA in EUR million 5.9 5.1 14.5 EBITDA margin in % 45.0 34.7 Chang- e 30.06.2018 30.06.2017 in % Number of employees 1,515 1,466 3.3 - in Germany 1,054 980 7.6 - abroad 461 486 -5.1 Chang- e 30.06.2018 31.12.2017 in % Balance sheet total in EUR million 3,070.2 3,085.5 -0.5 Non-current assets in EUR million 2,744.1 2,746.4 -0.1 Current assets in EUR million 326.1 339.1 -3.8 Shareholders equity in EUR million 805.9 800.1 0.7 Liabilities in EUR million 2,264.3 2,285.4 -0.9 Equity ratio in % 26.3 25.9 About VTG: VTG Aktiengesellschaft is one of Europe's leading railcar leasing and rail logistics companies, with a fleet consisting of more than 83,000 railcars. VTG offers a full-range service, providing tank cars, intermodal cars, standard freight cars and sliding wall cars. In addition to the leasing of railcars, 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). Contact Corporate Communications: Gunilla Pendt Head of Corporate Communications Telephone: +49 (0) 40 23 54-1341 Fax: +49 (0) 40 23 54-1340 E-mail: [email protected] Contact Investor Relations 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 --------------------------------------------------------------------------- 14.08.2018 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 --------------------------------------------------------------------------- 713755 14.08.2018