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Alexander Sixt, Sixt – NOAH14

Alexander Sixt, Sixt – NOAH14


Alex sixth I remember in my old days from Hamburg when I saw your advertisements and always had to had a great laugh When I went by in usually German airports Thank You Marco when I look at my Precess or how I look that will definitely start losing that app. I tell you that well. I’m here to present sixth Maybe in a short while I mean I Probably won’t go through the slides the company was founded by my great-grandfather in 1912 my father took it over in 1968 with about two hundred cars three locations Right now we have excess revenues of our Freight 1.6. Billion be purchased by 280,000 cars net asset value about three and a half billion equity base roughly eight hundred million In terms of strategy we have basically three main pillars of strategy on the one hand European expansion We are market leader in Germany with a market share of roughly 40% in Europe we overtook her its last year this year We will take Avis so Europe cars just a little fraction ahead of us But we are in fact the most profitable car rental company on this planet as far to my knowledge The second dimension of strategy is international expansion in the United States The US market is by far the largest coronal market in the world about 25 billion euros in revenue Miami Airport itself has about thirty eight thousand cars Which about two-thirds of fleet in Germany and every of those markets we achieved a market share of roughly Six to eight percent which sounds trivial right now, but we fear to conquer the most lucrative hundred airports We will basically double our revenues, and this is our midterm future goal about four years and the third pillar strategic alternative investments And I’d like to quote. I just read on my way over here an interesting Morgan Stanley research report And he quoted Edison when he introduces light bulb in Mellon Park He said we’re gonna make it electricity so cheap that only the rich people can afford to burn candles And transfer to our industry is we gonna make mobility so efficient and so cheap that only the rich people can afford to buy cars Why is that the car is probably one of the most the utilized assets in the world? It’s driven for an average about an hour a day 23 hours a day is parked on the side of the road They are about 1 billion vehicles in the world representing a total value of roughly 20 trillion dollars That’s about the GDP size the United States and all this product of such massive flavor productivity and material is Achieving a utilization is just 4% Maybe to put it into perspective 1 billion cars times 365 days times 1 hour days. That’s 365 billion hours driven that sounds huge, but it kind of masks the eight point four trillion hours that the car is not used I Think a utilization north of 50 percent is somehow unrealistic, but we surely can do better than 4 percent and How do we react to it well? the largest for car rental companies in the world Grew by about twenty five billion in equity value over the last 60 years the investments in urban mobility generated an equity value of also twenty five billion in the last four years that means Investors are seeing a tremendous value uptake in This new disruptive industries, how does a company like mine? React to it. Well on the one hand we found that drive now drive now is a 50/50 joint venture with BMW It’s a car sharing product, and we basically reinvented car sharing you know before You know what’s kind of this eco thing and you know had to pick up your car and drop it off Wherever you you know at a designated parking spot, and we want to do You know we define the product and the product is I T so In Drive now know you can basically pick up your car and drop it off. Wherever you like within the city boundaries When we start a drive now the entire car sharing marketing Germany had about hundred and fifty thousand members Within one and a half years of his existence drive now it generated about 350 thousand members achieving a significant double-digit amount in revenue double-digit billion amount in revenue And we are profitable Now we expanded to our first international city. Well. It’s a national city more or less It’s Vienna, and I’m proud to announce that we gonna launch our product in London as was the fourth of December The second pillar is our Limousine taxi L company called my driver we in the first eight months of it existence we generate about 150,000 rights And my driver is position a bit differently than the classical taxi hailing mo companies we focus on Two different axes on the one hand we focus on the b2b climb because we truly believe The b2b segment is probably the most unattached second, and that’s the main I give you a little example an industrial company out of Munich their annual current will spend is roughly 20 million euros the annual taxi spend is about 100 million years my former employer will not Berger the annual car rental spend is 2 million the taxi spend is 4 million and The taxi spend is probably the last spend category that is not Negotiated by a travel manager the process of you know handing in cash putting a slip in it’s a nightmare so we decided that that industry has to be reshaped and we basically got about two-thirds of the German and Consulting companies and auditors already has a client of drivers now the second big issue I see in the current market is guaranteeing supply Not unlike in United States. There’s massive amount of supply when it comes to drivers in Germany Unfortunately the taxi market is so strong that guaranteeing supply is currently the biggest issue, and I think that’s where our strengths come in as As a carnal company. We are able due to the fact that we buy about 250 thousand causes You’re at kind of favorable purchase conditions than anybody else we can supply the driver with a fleet and taken out significantly Of his cost base therefore guarantying supply To make a long story short, I think there are Three major urban mobility trends car sharing rental car and taxi limo companies the one who can integrate all those technologies Will have a significant advantage towards the others and the one who solved the riddle of fleet management I think that’s something which is totally under value but most of the other companies I give you a little example if I were to increase my utilization but just one percent in the carnal space I would increase my EBT by roughly fourteen million if I increase price by one year, I will increase my EBT by six million years right now Those apps which are out there are just a pure mechanism to allocate demand and supply So I think six offering this whole wide of service range and also has a deep now of the fleet management structure I think we’re pretty well positioned and Look forward to the future. I think twenty seconds. I made it. Thank you so much for your time. I appreciate

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