News Detail

Sixt Leasing SE: Significant increase in contract portfolio in 2019 financial year - More demanding general conditions in 2020

• Group contract portfolio climbs to record level in 2019 financial year - All three business fields return to growth in the fourth quarter
• Number of new contracts in the Online Retail business field increases by more than 30 per cent year-on-year in 2019
• Consolidated operating revenue and earnings before taxes (EBT) below previous year's level, as expected
• Outlook for 2020: Slight increase in Group contract portfolio and consolidated operating revenue at about the previous year's level expected; EBT influenced by Coronavirus and costs in connection with the announced takeover offer
• Offer document of HCBE published on 24 March 2020 after approval by Bafin
• CEO Michael Ruhl: "Our goal remains to become the leading provider of longer-term auto-mobility in Europe. Therefore, we want to continue to implement our 'DRIVE>2021' strategy programme and, in particular, expand our product and service portfolio."

Pullach, 25 March 2020 - Sixt Leasing SE, a leading provider in online direct sales of new vehicles in Germany as well as specialist in the management and full-service leasing of large fleets, has significantly increased its Group contract portfolio in the 2019 financial year according to preliminary calculations (IFRS). By the end of December, the Group contract portfolio had climbed to 136,200 contracts, reaching the highest level in the company's history. The main reason for this was the positive development in the fourth quarter. Consolidated operating revenue decreased slightly. Consolidated earnings before taxes (EBT) were 4.0 per cent below the previous year's level. Thus, business development was in line with the expectations of the Managing Board in accordance with the forecast adjusted in October 2019. In the current 2020 financial year, the general conditions are becoming more demanding, according to the Managing Board.

Business development in the fourth quarter of 2019

In the fourth quarter of 2019, all business fields were able to increase their contract portfolio compared to the third quarter of 2019. The contract portfolio in Online Retail grew by 1.7 per cent. The Fleet Leasing business field recorded an increase of 2.7 per cent - thus it grew in comparison to a previous quarter for the first time since the fourth quarter of 2017. The contract portfolio in the Fleet Management business unit climbed by 16.4 per cent, in particular due to the acquisition of Flottenmeister GmbH. Overall, the Group's contract portfolio in Germany and abroad (excluding franchise and cooperation partners) grew by 7.1 per cent compared to the previous quarter.

Business development for the full year 2019

Compared to the previous year, the number of contracts in the Online Retail business field decreased slightly by 0.8 per cent to 44,300 in the 2019 financial year. A significantly higher number of expiring contracts was offset by more than 13,000 new contracts, an increase of more than 30 per cent compared to the previous year.

The number of contracts in the Fleet Leasing business field declined by 6.1 per cent to 40,400 in the 2019 financial year. This was mainly due to further vehicle returns following the loss of a volume customer in the previous year.

The Fleet Management business unit recorded a significant increase in the contract portfolio by 22.5 per cent to 51,500 contracts, mainly due to the acquisition of Flottenmeister GmbH with around 7,000 contracts.

Overall, the Group's contract portfolio in Germany and abroad (excluding franchise and cooperation partners) thus rose significantly by 5.0 per cent to 136,200 contracts in the 2019 financial year. This is in line with the Managing Board's forecast, which was adjusted in October 2019.

Consolidated revenue grew by 2.3 per cent year-on-year to a record EUR 824.4 million. Consolidated operating revenue (excluding sales revenue) decreased by 2.6 per cent to EUR 468.2 million. The Managing Board had recently expected a figure in the region of EUR 465 million. Sales revenues from leasing returns and marketed customer vehicles in fleet management rose disproportionately by 9.5 per cent to EUR 356.3 million. The higher number of vehicle returns in the Online Retail business field contributed in particular to this increase.

Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) decreased by 3.4 per cent to EUR 232.7 million in the 2019 financial year. Consolidated earnings before taxes (EBT) for the 2019 financial year were 4.0 per cent below the previous year's figure at EUR 29.3 million. The Managing Board had recently expected EBT in the region of EUR 29 million. The operating return on revenue remained almost stable at 6.3 per cent (2018: 6.4 per cent). Consolidated profit declined by 2.0 per cent to EUR 21.5 million.

Michael Ruhl, CEO of Sixt Leasing SE: "In 2019, we were able to increase our contract portfolio significantly, but in 2020 the general conditions are becoming more demanding. The spread of the Coronavirus in particular presents us with major challenges. Nevertheless, we are convinced that we can master this situation. Not least, we expect our potential new strategic major shareholder to give us a tailwind. Our goal remains to become the leading provider of longer-term auto-mobility in Europe. Therefore, we want to continue to implement our 'DRIVE>2021' strategy programme and, in particular, expand our product and service portfolio."

Support from new strategic major shareholder

With the purchase of Sixt SE's 41.9 per cent stake in Sixt Leasing SE by Hyundai Capital Bank Europe GmbH (HCBE) on 21 February 2020, Sixt Leasing SE has a new strategic major shareholder. The joint venture between Santander Consumer Bank and Hyundai Capital Services supports the existing strategy of the Sixt Leasing Group. As planned, the Managing Board of Sixt Leasing will therefore focus in the 2020 financial year on the further digitalisation of the business model and the alignment of the organisation to future national and international growth.

On 24 March 2020, HCBE published the offer document after approval by Bafin. The regular acceptance period runs up to and including 30 April 2020. Further details of the takeover offer can be found at hcbe-offer.com.

Outlook

The forecast published on 20 March 2020 applies to the current 2020 financial year. Accordingly, the Managing Board expects a slight increase in the Group's contract portfolio compared with the preliminary figures for the 2019 financial year and consolidated operating revenue to be roughly at the previous year's level. With regard to EBT, the Managing Board expects a figure very significantly below the previous year's level.

The cautious forecast is, in addition to the operative business development to date in the current year 2020, mainly due to the current national and international development of the COVID-19 situation. Moreover, the consolidated earnings in the 2020 financial year will be burdened by costs independent of the completion of the takeover bid from HCBE in a low single-digit million euro range, which will be incurred to a significant extent in Q1 2020. If the 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 a high single-digit million euro range are also expected in 2020. Possible growth impulses from the change of the major shareholder are not included in these forecasts, as they cannot be quantified at present.

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About Sixt Leasing:
Sixt Leasing SE based in Pullach near Munich is a leading provider in online direct sales of new vehicles in Germany as well as specialist in management and full-service leasing of large fleets. With tailor-made solutions, the company enables the longer-term mobility of its private and corporate customers.

Private and commercial customers use the online platforms sixt-neuwagen.de and autohaus24.de to lease new vehicles affordably. Corporate customers benefit from the cost-saving leasing of their vehicle fleet and from efficient fleet management.

Sixt Leasing SE (WKN: A0DPRE / ISIN: DE000A0DPRE6) has been listed in the Regulated Market of the Frankfurt Stock Exchange (Prime Standard) since 7 May 2015. In fiscal year 2019, the Group generated consolidated revenue of EUR 824 million.
www.sixt-leasing.com

Contact:
Sixt Leasing SE
Investor Relations
Stefan Kraus
+49 89 74444 4518
[email protected]

Note:
All fiscal year 2019 figures in this release are preliminary and subject to possible change. The final and audited 2019 consolidated annual financial statements for Sixt Leasing Group will be published on 29 April 2020.

THE SIXT LEASING GROUP IN 2019 AT A GLANCE¹

¹ Preliminary figures according to IFRS; rounding differences possible
² Ratio of EBT to operating revenue