News Detail

Sixt Leasing SE: Preliminary group results for 2019, expected business development in Q1 2020, forecast for 2020 and withdrawal of medium-term forecast

Pullach, 20 March 2020 - Sixt Leasing SE announces its preliminary and unaudited consolidated results (IFRS) for its 2019 financial year. According to these figures, the group's contract portfolio as of 31 December 2019 has increased considerably by around 5% in comparison to the corresponding previous year to 136.200 contracts (previous year: 129.700 contracts). Consolidated operating revenue (excluding sales revenue) declined by 2.6% to around EUR 468.2 million (previous year: EUR 480.5 million) and consolidated earnings before taxes (EBT) by 4% to around EUR 29.3 million (previous year: EUR 30.5 million). Business development thus met the expectations of the Management Board according to the forecast for the 2019 financial year, which was adjusted in October 2019.

However, according to current estimates by the Management Board, consolidated earnings before taxes (EBT) for the first quarter of 2020 are expected to decline substantially compared to the same period of the previous year (EBT Q1 2019: EUR 7.0 million). This estimate takes into account the internal accounting status including February 2020 and the expected development in March.

The forecast for the current 2020 financial year adopted by the Management Board today falls short of current market expectations and the underlying analyst consensus. Accordingly, compared with the preliminary figures for the 2019 financial year and taking into account the business development in 2020 to date, the Management Board expects a slight increase in the group's contract portfolio and a consolidated operating revenue approximately on the previous year's level. With regard to EBT, the Management Board expects it to be substantially lower than in the previous year.

The reason for the expected decline in Q1 2020 and the cautious forecast for the full year 2020 is, in addition to the current operating business development in the financial year 2020, above all the current national and international development of the COVID-19 situation. In this respect, the company assumes an at least temporary deterioration of the market and business environment and expects a recovery of the business development in the second half of the year. In addition, the consolidated net results in the 2020 fiscal year will be burdened by costs of the company related to the takeover offer of Hyundai Capital Bank Europe GmbH in the low single-digit million euro range, which are independent from its completion and will be incurred to a significant extent already in Q1 2020.

If the above transaction is successfully completed, which is expected in the second half of 2020, further one-off costs of the company (e.g. IT expenses, consulting fees and bonuses) in the high single-digit million euro range are also expected in 2020.

Due to the above-mentioned uncertainties, the Management Board is currently unable to make a more precise and reliable assessment of the medium-term business development. The Management Board is therefore withdrawing its medium-term forecast published on 13 March 2019 and, under the current circumstances, refrains from issuing a new medium-term forecast until further notice.

As planned, Sixt Leasing SE will report in detail on the preliminary figures for the 2019 financial year on 25 March 2020 and publish its quarterly Q1 2020 statement on 12 May 2020.

Note: "Consolidated operating revenue" is not a financial figure according to IFRS. Information on the composition of consolidated operating revenues can be found on page 47 of the Sixt Leasing SE annual report 2018 (available at https://ir.sixt-leasing.com).

All information in this release regarding the 2019 fiscal year is based on still preliminary figures which are subject to changes. The complete and audited Annual Report 2019 will be published as planned on 29 April 2020.

Contact:
Stefan Kraus
Investor Relations
E-mail: [email protected]
Tel: +49 89 74444 4518