News Detail

Sixt Leasing SE: Business development in the first quarter of 2020 in line with expectations

• Slight decrease in Group contract portfolio in the first three months of 2020 - Significant increase compared to the same period of the previous year
• Consolidated operating revenue and earnings before taxes (EBT) below previous year's level, as expected
• Managing Board and Supervisory Board propose a dividend of EUR 0.90 per Sixt Leasing share to the shareholders for the 2019 financial year
• Managing Board intensifies measures to reduce COVID-19 risks and confirms forecast for 2020 - Still recovery expected in the second half of the year
• End of additional acceptance period for voluntary public takeover offer by Hyundai Capital Bank Europe GmbH on 20 May 2020 at 24:00 hours (CEST)

Pullach, 12 May 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 developed in line with expectations in the first quarter of 2020. The Group's contract portfolio decreased slightly in the period from the end of December 2019 to the end of March 2020. Consolidated operating revenue declined year-on-year. Earnings before taxes (EBT) were very significantly below the previous year's level. The Managing Board confirms the forecast for the 2020 financial year. Accordingly, it continues to expect business development to recover in the second half of the year.

Business development in Q1 2020
In the first quarter of 2020, the expansion of the digital product and service portfolio in particular was further advanced. In the Online Retail business field, Sixt Leasing launched a sales cooperation with PAYBACK via its online platform sixt-neuwagen.de to market a Kia Stonic "VISION" to private customers. In the Fleet Management business unit, the smartphone app "The Companion" for fleet customers was further developed and, among other things, upgraded with the digital payment function "Shell Payment@Pump". In the Fleet Leasing business field, Sixt Leasing expanded its cooperation with BSH Hausgeräte GmbH in the field of e-mobility.

The contract portfolio in the Online Retail business field fell slightly by 1.8 per cent to 43,500 in the period from the end of December to the end of March, particularly as a result of further vehicle returns from the 1&1 campaign conducted in the 2017 financial year. The contract portfolio in the Fleet Leasing business field declined by 1.7 per cent to 39,700 contracts. The Fleet Management business unit recorded growth of 1.4 per cent to 52,200 contracts. Overall, the Group's contract portfolio in Germany and abroad (excluding franchise and cooperation partners) decreased by 0.7 per cent to 135,300 contracts.

Compared to the end of the first quarter of 2019, the Group contract portfolio recorded a significant growth of 7.7 per cent. The main reason for this was the 24.9 per cent increase in the contract portfolio in Fleet Management, which is mainly due to the acquisition of Flottenmeister GmbH in the fourth quarter of 2019. The contract portfolio in Online Retail increased by 2.6 per cent compared to the same quarter last year. Fleet Leasing recorded a decline of 4.1 per cent.

Consolidated revenue in the first quarter of 2020 fell by 14.4 per cent year-on-year to EUR 199.3 million. This is mainly due to the decline in sales revenues. Consolidated operating revenue (excluding sales revenue) fell by 4.5 per cent to EUR 114.3 million. Sales revenues from leasing returns and marketed customer vehicles in fleet management fell by 24.8 per cent to EUR 85.0 million. This decline is mainly due on the one hand to the very strong first quarter of the previous year with a very high number of leasing returns sold in the Online Retail business field, and on the other hand to the restrictions on stationary automobile trade as a result of the COVID-19 pandemic.

Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) fell in the first three months of 2020 by 1.5 per cent to EUR 56.3 million compared to the same period last year. Consolidated earnings before taxes (EBT) recorded a decline of 20.3 per to EUR 5.6 million, which was in line with expectations. The lower EBT is due, among other things, to the volume effect in vehicle sales described above, increased marketing expenses at the beginning of the year and initial transaction-related costs in connection with the voluntary public takeover offer by Hyundai Capital Bank Europe GmbH (HCBE). The operating return on revenue in the first three months of 2020 thus amounted to 4.9 per cent (-1.0 percentage points). Consolidated profit decreased by 33.4 per cent to EUR 3.8 million.

Dividend proposal
The Managing Board and Supervisory Board of Sixt Leasing SE propose to the shareholders a dividend of EUR 0.90 per Sixt Leasing share for the 2019 financial year (previous year: EUR 0.48). Thus, the Boards confirm the dividend expectations of the shareholders as deriving from the sale of Sixt SE's stake in the company and the associated voluntary public takeover offer by HCBE. The Managing Board and Supervisory Board based their dividend proposal on the up to date business, investment and liquidity planning of the company, which already has been adjusted to the expected economic and financial effects of the COVID-19 situation on the markets and the operations of Sixt Leasing SE.

Michael Ruhl, CEO of Sixt Leasing SE: "As expected, the general conditions for our business have become more challenging. We have therefore significantly intensified our early warning, monitoring and control measures for the Sixt Leasing Group. Our new major shareholder HCBE will give us the tailwind to continue to successfully implement our 'DRIVE>2021' strategy program. The minimum acceptance threshold for the voluntary public takeover offer has already been reached. The further acceptance period will end in a few days."

With its internal control and risk management system, Sixt Leasing SE is appropriately positioned for monitoring and controlling the Group, also in regard to the current COVID-19 situation. However, the Managing Board has intensified risk management due to the more demanding framework conditions.

Takeover offer
Shareholders of Sixt Leasing SE can accept the voluntary public takeover offer by HCBE until the end of the legally stipulated, additional acceptance period on 20 May 2020 at 24:00 hours (CEST). The minimum acceptance threshold of 55 per cent was significantly exceeded at the end of the regular acceptance period on 30 April 2020 at 24:00 hours (CEST) with an acceptance rate of 72,84 per cent. The closing of the takeover offer is still subject to the remaining customary closing conditions set out in the offer document.

HCBE, a joint venture of Santander Consumer Bank AG and Hyundai Capital Services Inc., had announced the offer on 21 February 2020. The offer document was published on 24 March 2020. In their joint reasoned statement on 6 April 2020, the Managing Board and Supervisory Board of Sixt Leasing SE issued a recommendation to shareholders to accept the offer. The statement is available on the Internet at https://ir.sixt-leasing.com/takeoveroffer.

Outlook
According to the forecast published on 20 March 2020, the Managing Board continues to expect a slight increase in the Group's contract portfolio compared with 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. This does not yet take into account the expenses that would be incurred after a successfully completed HCBE takeover offer. The Managing Board expects the transaction to be completed in the second half of 2020 and, in this case, expects additional one-off costs in a high single-digit million euro range in the year 2020, part of which is to be considered in the accounting already in the first half of 2020. The assumptions and uncertainties in connection with the COVID-19 pandemic described in the Quarterly Statement also apply to the forecast. This includes the assumption that a recovery in business development will occur in the second half of the year 2020.

The Group's Quarterly Statement as of 31 March 2020 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 fiscal year 2019, the Group generated consolidated revenue of EUR 824 million.

www.sixt-leasing.com

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


The Sixt Leasing Group in Q1 2020 at a glance¹

¹ Rounding differences possible
² Ratio of EBT to operating revenue