DGAP-News: Sixt Leasing SE: Business development in Q1 2019 in line with expectations

Sixt Leasing SE: Business development in Q1 2019 in line with expectations

• Slight decrease of Group contract portfolio and operating revenue
• EBT with around EUR 7 million in line with expectations
• Managing Board introducing measures in four areas to further improve business model
• Forecast for 2019 financial year and medium-term targets for 2021 confirmed

Pullach, 8 May 2019 - Sixt Leasing SE, market leader in online direct sales of new vehicles in Germany as well as specialist in the management and full-service leasing of large fleets, has performed as expected in the first quarter of 2019 and is confirming its forecast for the 2019 financial year as well as its medium-term targets for 2021. In addition, the Managing Board has introduced various measures to further develop the Group's business model and to increase revenue and earnings significantly over the medium term.

Michael Ruhl, CEO of Sixt Leasing SE: "Our goal for 2019 is to significantly develop our business model in the four areas of Products, Customer Experience, Segments & Markets and Processes. Our focus will be on digitalisation throughout this. In doing so, we are laying the foundation for becoming the leading provider of longer-term auto-mobility in Europe."

• In the Products area, the existing product range will be supplemented with new more flexible and bundled offerings in order to address individual customer groups even more specifically. Moreover, in addition to new car leasing, customers should be given the opportunity to lease used vehicles, and to book individual service products independently of a leasing or fleet management contract.
• The Customer Experience will be improved further with more user-friendly online portals, applications and processes. App-based self-service functions should give users a simple and intuitive alternative to the currently still frequently used service processing via telephone, email or fax. Furthermore, Sixt Leasing is planning to open more of its own locations where customers can pick up and return their vehicle directly.
• In the Segments & Markets area, the Group is putting a stronger focus on smaller corporate customers in the B2B business. The Fleet Management business unit will further develop into an integrated corporate mobility manager, offering not only standard fleet management services but also integration of innovative, forward-looking mobility concepts such as mobility budgets and car sharing. On top of that, the company is seeking to expand its international operations more aggressively.
• Sixt Leasing will gradually automate and digitise Business Processes, which are still partly manual or analogue, in order to achieve more efficient procedures both for customers and within the organisation. At the same time, the cooperation between the business fields is to be intensified in order to make better use of synergies and optimise costs.

Business performance in Q1 2019

The Group's contract portfolio in Germany and abroad (excluding franchise and cooperation partners) decreased slightly by 3.1 per cent to 125,600 contracts during the period from the beginning of January to the end of March 2019. Throughout this, the contract portfolio was adversely affected in particular by the continued high number of vehicle returns due to the successful 1&1 campaign and last year's drop-out of a volume Fleet Leasing customer.

Consolidated revenue rose by 15.2 per cent to EUR 232.7 million compared to the same period last year. This is mainly attributable to the significant increase in sales revenue, especially from the considerably higher number of sold leasing returns in the Online Retail business field. Consolidated operating revenue (excluding sales revenue) declined by 0.6 per cent to EUR 119.7 million, remaining virtually stable.

Consolidated earnings before taxes (EBT) therefore fell by 12.7 per cent to EUR 7.0 million. The operating return on revenue decreased by 0.8 percentage points to 5.9 per cent. Consolidated net profit declined by 3.8 per cent to EUR 5.7 million.

Outlook

For the 2019 financial year, the Managing Board continues to expect a slight increase of the Group's contract portfolio as well as consolidated operating revenue and EBT both at around the previous year's level. At the same time, the business development in the first half of 2019 is still expected to remain significantly weaker than in the same period of the previous year as well as the expected business development in the second half of 2019.

By the end of the 2021 financial year, the Managing Board continues to expect an increase of the Group's contract portfolio by around 50 per cent to around 200,000 contracts and a significant increase in consolidated operating revenue to around EUR 650 million. EBT is still expected to increase from just over EUR 30 million to EUR 40 to 45 million compared to the 2018 financial year.

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About Sixt Leasing:
Sixt Leasing SE based in Pullach near Munich is market leader 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 2018, the Group generated consolidated revenue of EUR 806 million.
www.sixt-leasing.com

Contact:
Sixt Leasing SE
Investor Relations
Stefan Kraus
+49 89 74444 4518
ir@sixt-leasing.com

THE SIXT LEASING GROUP IN Q1 2019 AT A GLANCE¹

¹ Rounding differences possible
² Ratio of EBT to operating revenue