AutoHellas Hertz SA

Press release on nine-month period results

Improvement in short-term rental volumes and substantial increase in Earnings before tax 

Consolidated Turnover reached €117.5mill from €116.5 in last year's respective period, reporting a marginal increase of 0.8%. Increased tourist arrivals during the previous 6 months, have contributed significantly in maintaining the group's turnover and counterbalanced the reduction in corporate business which is highly dependable on domestic demand.

Consolidated earnings before tax increased by 35.8% versus last year's nine-month period, reaching €14.9mill confirming management's estimations on the increase in short term rentals coming as a result of the increase in incoming tourism. The number of short term rentals for the first 9 months increased by 15% in relation to last year's relevant period. It is important to mention that EBT increase came despite the large increase in finance cost from €3.8mill to €5.6mill, even though loans were reduced substantially in relation to last year's respective period. The finance cost increase came as a result of the company's extremely low-cost five year bond loan, which expired in March 2013.

Consolidated Earnings After Tax and minority rights reached €6.9mill from €8.6mill in last year's respective period. This reduction which came despite an increase in earnings before tax, is the result of the increase in companies' tax rate from 20% to 26%, which increased substantially the company's deferred tax (mainly coming from previous years earnings) by €4.5mill.       

Consolidated earnings before tax, financial and investment activities and depreciations were reported at €56.9mill. Net Borrowing (loans minus cash reserves) was reduced by €13.3 in relation to 2012, despite the substantial increase in investment in new vehicles which reached €33mill from €18mill in last year's first 9 months.

Finally, on the 10^th October 2013, the Athens stock exchange market approved the capital return in cash to shareholders of amount €7.8mill, which will take place on the 2^nd of December 2013.

As of the 15th of May 2012, Autohellas holds the franchisee license for short term renting for Romania as well. Hence the company now operates in 5 foreign countries, Bulgaria, Romania, Cyprus, Serbia and Montenegro, following a moderate growth plan with consistency, building a strong and healthy position in these countries. It must be mentioned that for the first nine months of 2013, foreign subsidiaries' turnover represents 19.3% of the group's turnover while subsidiaries' earnings before tax represent 22% of total consolidated EBT.