News Detail

Sixt Leasing SE: Business development in first quarter of 2021 further impacted by COVID-19 pandemic - Outlook for 2021 confirmed

• Business development in the first quarter of 2021 in line with expectations
• Further successful digitalisation of the business model
• Outlook 2021: Slight increase in Group contract portfolio, consolidated operating revenue in the range of previous year's figure and EBT in a higher single-digit million euro amount to be expected

Pullach, 19 May 2021 - Sixt Leasing SE, a leading provider in online direct sales of new vehicles in Germany as well as a specialist in the management and full-service leasing of large fleets, has developed in line with expectations in the first quarter of 2021. Business development continued to be affected in particular by the COVID-19 pandemic. The Group contract portfolio decreased slightly in the period from the end of December 2020 to the end of March 2021. Consolidated operating revenue showed a significant year-on-year decline. Consolidated earnings before taxes (EBT) were very sharply below the prior-year level. The forecast issued in March continues to apply for the 2021 financial year.

Business development
In the first quarter of 2021, Sixt Leasing achieved several milestones in the digitalisation of its business model. Firstly, a new smartphone app for fleet customers was launched, which makes it easier for company car drivers to manage their leasing contract and thus increases efficiency in fleets. In addition, the realignment of the subsidiary autohaus24 as one of the leading online car dealerships for new and used cars in Germany was driven forward and a rebranding of the brand presence was carried out. Moreover, a completely digital ordering process was introduced on sixt-neuwagen.de, enabling private customers to conclude contracts conveniently and securely from home or on the road. Via sixt-neuwagen.de, Sixt Leasing also launched an initial campaign as the starting point for a longer-term cooperation with Vehiculum to market attractive new cars on the Internet.

The contract portfolio in the Online Retail business field decreased by 2.3 per cent to 37,800 contracts in the period from the end of December 2020 to the end of March 2021, mainly due to a continued weak new business volume. The contract portfolio in the Fleet Leasing business field fell by 3.5 per cent to 36,500 contracts. In the Fleet Management business unit, the contract portfolio increased by 0.7 per cent to 53,900 contracts. Overall, the Group's contract portfolio in Germany and abroad (excluding franchise and cooperation partners) fell slightly by 1.4 per cent to 128,100 contracts.

Consolidated revenue in the first quarter of 2021 decreased by 6.3 per cent to EUR 186.7 million compared to the same period in the previous year. This is mainly due to the decline in operating revenue. Operating revenue, which does not include proceeds from vehicle sales, decreased by 14.5 per cent to EUR 97.7 million. A major impact on the decline in operating revenue was attributable to the third "lockdown" due to the ongoing COVID-19 pandemic, which lasted throughout the full first quarter of 2021, in contrast to the prior-year quarter, which was not burdened to the same extent by the COVID-19 pandemic. This third "lockdown" resulted, among other things, in a significantly reduced vehicle usage, causing in particular a decline in usage-related revenues, such as fuel revenues and revenue from individual service products. Moreover, leasing revenue (finance rate) decreased compared to the first quarter of 2020 due to the decline in the contract portfolio of the Leasing business unit. Sales revenue from the sale of leasing returns and marketing of customer vehicles in Fleet Management increased by 4.7 per cent to EUR 89.0 million. Among other things, this increase was due to the fact that fewer vehicles were sold in the prior-year quarter as a result of the extensive restrictions on stationary motor vehicle sales during the first "lockdown" caused by the COVID-19 pandemic.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) decreased in the first three months of 2021 by 16.1 per cent to EUR 47.2 million compared to the same period in the previous year. As expected, earnings before taxes (EBT) saw a decline of 82.5 per cent to EUR 1.0 million. The operating return on revenue (EBT/operating revenue) consequently amounted to 1.0 per cent (Q1 2020: 4.9 per cent). Consolidated profit decreased by 84.0 per cent to EUR 0.6 million. The lower EBT is in line with expectations and is mainly due to the market and business environment, which was strongly negatively impacted by the COVID-19 pandemic, as it was still burdened by transaction-related costs incurred in connection with the company being taken over by Hyundai Capital Bank Europe GmbH (HCBE).

Michael Ruhl, CEO of Sixt Leasing SE: "The economic environment remains challenging due to the Corona pandemic. Nevertheless, we successfully advanced the digitalisation of our business model in the first quarter. We will continue to consistently implement our strategy and are thus well positioned to meet the continuing high demand for mobility - especially after the lifting of contact restrictions."

Besides the further digitalisation of products, services, and internal processes, Sixt Leasing is planning to introduce a mobility budget in the Fleet Management business unit in the 2021 financial year among other things. This is intended to give fleet customers' employees the option - as an alternative or supplement to the company car - of using means of transport such as bus, rail, bicycle, car sharing or taxi. Another focus will be on diversifying the customer portfolio in the Fleet Leasing business field with smaller fleets and especially on service quality.

Outlook
The Managing Board confirms the outlook published on 24 March 2021. Accordingly, it expects a slight increase in the Group contract portfolio compared to the previous year (2020: 129,900 contracts) and consolidated operating revenue in the range of previous year's figure (2020: EUR 423.3 million). With regard to EBT, the Managing Board expects a higher single-digit million euro amount (2020: EUR 9.1 million).

The reason for the cautious forecast for the full year 2021 is, in addition to the operating business development in the 2021 financial year to date, primarily the ongoing COVID-19 situation. In this respect, the company assumes that the market and business environment will continue to be strongly negatively impacted by the COVID-19 pandemic and expects a recovery in business development in the second half of 2021 at the earliest. In addition, consolidated earnings will also be burdened in the 2021 financial year by transaction-related costs in connection with the takeover of the company by HCBE.

The Group's Quarterly Statement as of 31 March 2021 can be downloaded from https://ir.sixt-leasing.com/interim-reports.

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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 financial year 2020, the Group generated consolidated revenue of EUR 748 million.

www.sixt-leasing.com

Contact:

Sixt Leasing SE
Investor Relations
+49 89 74444 4518
[email protected]

The Sixt Leasing Group in Q1 2021 at glance¹

¹ Rounding differences possible
² Ratio of EBT to operating revenue