DGAP-News: Sixt Leasing SE: Business performance in first half of 2019 as expected

Sixt Leasing SE: Business performance in first half of 2019 as expected

• Consolidated revenue increases by 9 per cent to EUR 428 million in the first half of 2019
• Contract portfolio and operating revenue decrease slightly, as expected
• EBT of just over EUR 14 million in line with expectations
• Business performance in the second half of the year still expected to be stronger
• Managing Board confirms forecast for 2019 and medium-term targets for 2021

Pullach, 12 August 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 in line with expectations in the first half of 2019. The company is also confirming its forecast for the 2019 financial year and its medium-term targets for 2021. In the first six months of 2019, consolidated revenue increased significantly compared to the same period last year while, as expected, the contract portfolio and operating revenue decreased slightly. Consolidating earnings before taxes (EBT) came in below last year's figure, as expected.

Michael Ruhl, CEO of Sixt Leasing SE: "For the second half of 2019, we are expecting a stronger business performance than in the first half of the year. In particular, the further implementation of our 'DRIVE>2021' strategy programme will contribute to this. Our goal is to increase revenue and earnings significantly over the medium term. In doing so, we want to become the leading provider of longer-term auto-mobility in Europe."

Sixt Leasing's business model is to be developed in the 2019 financial year. To this end, the Managing Board has implemented various measures in the four areas of Products, Customer Experience, Segments & Markets and Processes. The focus is on growth and digitalisation initiatives in order to expand the product and service offer and to make it more flexible. In this context, an extension of the corporate purpose has already been decided by the Annual General Meeting. Accordingly, the company is now able to offer or broker certain products and services independently of any lease or fleet management contract.

As part of the 'DRIVE>2021' strategy programme, further measures could be successfully implemented in the first half of 2019. In the Online Retail business field, Sixt Leasing launched an innovative sales cooperation with Fiat and Tchibo via its sixt-neuwagen.de online platform to market a brand-new Fiat 500 Lounge to private customers at particularly attractive rates. For the first time, such a cooperation integrated not only the car manufacturer but also the dealers.

In the Fleet Management business segment, international expansion was given a boost with new managers in Austria, France and the Netherlands. The Austrian subsidiary is now also focused on serving customers in Eastern Europe. In Germany, the sales team was strengthened and the test phase of the new self-service app 'The Companion' for company car users started.

Business performance in H1-2019

The Group's contract portfolio in Germany and abroad (excluding franchise and cooperation partners) decreased by 2.7 per cent to 126,200 contracts during the period from the beginning of January to the end of June 2019. In the second quarter, however, the contract development was positive. The Group's contract portfolio increased again slightly compared to the end of the first quarter.

In the Leasing business segment, the contract portfolio's development was burdened by further vehicle returns from the 1&1 campaign as well as further returns resulting from last year's dropped out high-volume customer in the Fleet Leasing business field. In the Fleet Management business segment, the contract portfolio continued to grow.

Consolidated revenue rose by 8.5 per cent to EUR 428.0 million compared to the same period last year. This is mainly attributable to the significant increase in sales revenues, especially from the considerably higher number of sold lease returns in the Online Retail business field. Consolidated operating revenue (excluding sales revenue) remained virtually stable at EUR 232.5 million (-1.5 per cent).

Consolidated earnings before taxes (EBT) in the first half of 2019 were with EUR 14.1 million in line with expectations (-10.7 per cent compared to the first half 2018). The operating return on revenue therefore amounted to 6.1 per cent (-0.6 percentage points). Consolidated net profit totalled EUR 10.4 million (-9.5 per cent).

Outlook

For the second half of 2019, the Managing Board expects a stronger business performance than in the first half of 2019. For the 2019 financial year, the Managing Board therefore 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.

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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The full half-year report can be downloaded at http://ir.sixt-leasing.com/interim-reports.

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 H1 2019 AT A GLANCE¹

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1 Rounding differences possible
² Ratio of EBT to operating revenue