SIXT closes 2020 with a slight profit in Europe despite Corona - total consolidated earnings within context of expectations given restrictions from pandemic and investments in growth market USA (english)

    SIXT closes 2020 with a slight profit in Europe despite Corona - total consolidated earnings
within context of expectations given restrictions from pandemic and investments in growth market
USA

^
DGAP-News: Sixt SE / Key word(s): Preliminary Results
SIXT closes 2020 with a slight profit in Europe despite Corona - total
consolidated earnings within context of expectations given restrictions from
pandemic and investments in growth market USA

02.03.2021 / 07:37
The issuer is solely responsible for the content of this announcement.

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SIXT closes 2020 with a slight profit in Europe despite Corona - total
consolidated earnings within context of expectations given restrictions from
pandemic and investments in growth market USA

  * Despite the significant drop in demand in the wake of the pandemic, SIXT
    achieves a small pre-tax profit (EBT) of EUR 7.3 million for the
    Mobility segment in Europe

  * Consolidated earnings before taxes (EBT) in line with expectations at
    EUR -81.5 million, substantially affected by the effects of the pandemic
    and the high investments in the USA; Earnings after taxes, including the
    discontinued Leasing Business Unit, slightly positive at EUR 2.0 million

  * Corporate EBITDA, as consolidated operating result including interest
    result and depreciation and amortisation on rental vehicles, sees SIXT
    clearly in the positive range at EUR 75.6 million for the Mobility
    segment and demonstrates the strong crisis management and high
    adaptability of SIXT's business model

  * Thanks to the diversified business model with its stable capacity
    utilisation of city offices as well as the area of long-term rentals and
    car subscriptions, SIXT managed to keep the drop in Group revenue at
    -38.8% to EUR 1.53 billion and thus well below the average drop in
    international air traffic of -76%

  * SIXT uses crisis year 2020 for internationalisation, to expand its
    product and market portfolio, for strategic partnerships and to
    strengthen its management

  * Consistent cost management successfully implemented: total cost basis
    massively reduced in 2020 by almost EUR 600 million compared with the
    previous year

  * Solid financing basis currently has significantly more than EUR 2
    billion in financial funds available following the successful issue of a
    bond over EUR 300 million and a syndicated loan of EUR 750 million,
    which replaces the hitherto unused credit line that had been granted
    with the participation of the state-owned Kreditanstalt für Wiederaufbau
    (KfW); equity ratio climbs 6.0 percentage points as at the end of 2020
    to a record level of 31.5%

  * Erich Sixt will resign from the Management Board and join the
    Supervisory Board of Sixt SE in June 2021; Supervisory Board appoints
    Alexander and Konstantin Sixt to succeed him as joint Chairmen of the
    Board and Co-CEOs on the Group Management Board

  * Erich Sixt, CEO of Sixt SE: "SIXT acted and used the crisis as an
    opportunity, instead of simply waiting for better times."

Pullach, 2 March 2021 - Following evaluation preliminary figures, SIXT
closed 2020 with a marginally positive EBT of EUR 7.3 million despite the
massive collapse in travel activities in Europe and at home. Given the
significant restrictions and decreases in demand in the wake of the COVID-19
pandemic, as well as the high investments made in the biggest growth market
USA, the Group's consolidated EBT came to EUR -81.5 million and stayed
within the communicated corridor between EUR -70 million to EUR -95 million.
After taxes and including the result from the discontinued Leasing Business
Unit, the Group actually recognised a small profit of EUR 2.0 million.
Corporate EBITDA, which refers to the consolidated operating result
including interest result and depreciation and amortisation on rental
vehicles, even reported a clear profit of EUR 75.6 million for the Mobility
segment for 2020. The diversified business model with its ongoing stable
capacity utilisation in the city offices as well as the area of long-term
rentals and car subscriptions, allowed the mobility service provider to keep
the drop in Group revenue at -38.8% to EUR 1.53 billion and thus well below
the average drop in international air traffic, which collapsed by 76% from
the previous year. [1]

The 2020 figures demonstrate the strong adaptability of SIXT's business
model and good crisis management. The Group used 2020 as an opportunity and
executed strategically important acquisitions, substantially strengthened
its personnel, concluded new strategic partnerships, among others with Lyft
and Google, and expanded its market position internationally. This means the
mobility service provider is excellently equipped to switch back fully into
growth mode once the current restrictions to international travel and
tourism are gradually lifted again.

Erich Sixt, CEO of Sixt SE: "SIXT acted, stayed true to its course and used
the crisis above all as an opportunity, instead of simply waiting for better
times. The fact that we even managed to bring in a small profit in Europe,
proves the success of our crisis management and the adaptability of our
business model even in this exceptional situation. Still more important
though, are our investments in the future. The acquisition of the highly
attractive airport stations in the USA lets us drive forward with our
internationalisation strategy, expand our product portfolio with the
successful launch of the car subscription offer SIXT+ and reinforce our top
management with top-notch candidates. Even if the current situation in our
industry continues to be characterised by high uncertainties, I am still
cautiously optimistic that after the end of the contact prohibitions and
travel restrictions we will return to a growth mode and link up again with
our success story before Corona."

Expansion in the USA proceeds
With the acquisition of ten strategically significant airport stations, SIXT
extended its position in 2020 as the fourth strongest vehicle rental
provider in the USA. This step enables the company to rent out vehicles
directly from the terminals of such important airports as Boston, all three
New York airports, Maui, Denver, Houston, Orlando or Las Vegas. Taken
together, the ten new airport stations clock up a market volume of around
USD 3.4 billion. SIXT is now present at 25 of the 30 key airports in the
world's biggest vehicle rental market that holds a revenue volume of over
USD 32 billion [2] and thereby has laid the groundwork for continued
substantial growth after the end of the Corona crisis.
In 2020 SIXT increased the number of stations in the USA from 65 to 100,
primarily by expanding the network of downtown sites. The continued
consolidation on the US market also offers significant further growth
potential. It should develop into the biggest single market for SIXT.

Car subscription service SIXT+ sees gratifying demand
The desire for flexible and independent mobility is picking up more and more
speed. In addition, many people currently prefer their own vehicle over
public transportation systems as a safe and reliable means of transport.
With the car subscription service 'SIXT+', which was integrated as the
fourth product category into our ONE mobility platform to supplement 'SIXT
rent' (vehicle rental), 'SIXT share' (carsharing) and 'SIXT ride' (transfer
services) and that can be booked via the SIXT app, SIXT is providing a
tailor-made product to serve this need. Current studies show that the
flexible use of a car and offers such as carsharing and most of all car
subscriptions will gain more and more in importance in the future and are
seen as viable alternatives to the acquisition of a car, for SIXT
subscription models offer the advantage of long-term and thus easily
budgetable revenue flows. Following its successful start in June 2020,
'SIXT+' quickly expanded abroad and is already available in Germany, France,
Great Britain, the Netherlands, Austria, Spain, the USA, and most recently
also in Switzerland. So far, well over 10,000 subscribers have already
signed up, and according to the Trendreport of the market research institute
Puls published in November 2020, SIXT is already by far the best-know brand
for car subscription today. Almost every other person in Germany (46
percent) is familiar with SIXT as a car subscription provider.

Van & Truck (V&T) as long-term growth market
Since 1 January 2021 the Van & Truck segment has been represented on Sixt
SE's Managing Board by its own department. It is headed by the trade and
logistics expert Daniel Marasch, who was previously the member of Lidl's
Managing Board responsible for the International Division and thus for
expanding into strategically important foreign markets. SIXT views the Van &
Truck business as an attractive long-term growth market, not least in view
of the rise of online retailing and service providers. This growth market
has seen growth in 2020, and SIXT has been continuously expanding its market
position in recent years. The strategic objective envisages attaining a
market-leading position in Europe as well as a relevant market share in the
USA. The plan foresees extending the national and international product
range with utility vehicles and trucks with a weight of up to 7.5 tons. The
digitisation of the fleet and its integrating into the mobility platform ONE
should continually improve the customer experience.

Superbly equipped for the future in terms of personnel
SIXT also used the crisis year 2020 to broaden and refresh its management
basis significantly and thereby set the course for key strategic growth
impulses. By appointing Managing Board member Daniel Marasch (43) to the new
Van & Truck division, SIXT is demonstrating its conviction that logistic
services are set to gain in importance in the long term and also after the
end of the pandemic. In addition, Nico Gabriel (43), a long-standing SIXT
manager, was appointed to the Managing Board as Chief Operations Officer
(COO). He is responsible for the logical and consistent amalgamation of the
branch office business with the company's digital mobility products into one
integrated global mobility offer. In his 16 year career Mr. Gabriel has
already made a material contribution to the digital transformation of SIXT.
His joining the Managing Board coincides with the departure of Detlev Pätsch
(69), who had been an instrumental force in the expansion of the SIXT Group
since 1986, and the Managing Board member with responsibility for Fleet &
Operations since 1993. Mr. Pätsch will retire from work effective as of 31
March this year.

To oversee the booming digital business, SIXT managed to gain James Adams
(37), the former COO of 'booking.com'. As Chief Commercial Officer (CCO), he
will be responsible for the newly created business unit "E-Commerce &
Revenue Management". The next stage in the expansion in North America will
be overseen by Thomas C. Kennedy as new President and Chief Financial
Officer (CFO) and Michael Meißner, acting as new President and Chief
Operating Officer (COO) for SIXT USA. As an expert for operations and a
long-standing SIXT manager, Michael Meißner, has impressively proven his
competence in scaling international markets as he did in his role as
Managing Director for Italy. Working together with the seasoned travel and
mobility manager Thomas Kennedy, they will be responsible for the
US-American market. In his last position, Kennedy was CFO for Hertz Global
Holdings and the global hotel chain Hilton.

Change at the Management Board will take place in the middle of the year:
The longstanding CEO of SIXT SE, Erich Sixt, will resign from the Management
Board after the company's Annual General Meeting on June 16, 2021, at the
age of 76, and, subject to the approval of the Annual General Meeting, will
join the Supervisory Board of Sixt SE, where he will assume the position of
Chairman, provided the Supervisory Board gives its consent. Alexander and
Konstantin Sixt, who have already been members of the Management Board since
2015, will succeed Erich Sixt on the Management Board and have been
appointed joint Chairmen of the Board and Co-CEOs with effect from June 17,
2021. The company thus focuses on strategic continuity, international growth
and digitalization. Friedrich Joussen, current Chairman of the Supervisory
Board, will step down from the Supervisory Board after the Annual General
Meeting in 2021.

Effective and resolute crisis management
With the onset of the COVID-19 crisis last spring, SIXT immediately resolved
on a set of measures to adjust its cost structure to drastically altered
market conditions:

  * Fleet size reduction: By reducing the average number of vehicles in the
    Group's fleet by 25% compared with 2019, SIXT was able to decrease the
    cost basis substantially and thereby release significant volume of
    liquidity. Herein it was aided by existing buy-back agreements concluded
    with the contract partners for the majority of the fleet as well as from
    the short holding period of the vehicles in Sixt's fleet that averages
    six months.

  * Total cost basis: All in all, the cost basis saw a massive reduction of
    almost EUR 600 million compared with the previous year. This
    impressively demonstrates the variability of the cost basis and thereby
    the adaptability of the business model.

  * Material and personnel costs: The centrally managed and rigorously
    implemented cost programme meant that the self-defined target of an
    initial EUR 100 million was clearly exceeded by over EUR 300 million.

Alexander Sixt, Board member responsible for Strategy and Organisation (CAO)
of Sixt SE: "We used 2020 to react resolutely to the crisis, especially to
ready the SIXT Group for the next growth phase. Thanks to our enormously
flexible business model and our stringently applied measures, we were able
to implement massive cost savings of almost EUR 600 million and thus
successfully counter the crisis. This required the full commitment and
loyalty of our workforce, to whom I wish to extend my very special
gratitude. Despite the second lockdown in the fourth quarter of 2020 we
worked our way back into profit zone by the end of the year. Moreover, our
solid financing basis with substantial free financial funds of currently
significantly more than EUR 2 billion is making us superbly fit for the
future. The new syndicated loan agreed recently of over EUR 750 million,
enables us to replace and terminate the non-utilised credit provided under
the participation of the state-owned KfW-Bank. Our equity ratio stands at a
record level of 31.5%, having increased by 6 percentage points after the
deconsolidation of the Leasing business. Along with the successful placement
of the EUR 300 million bond in December, this gives SIXT full freedom of
action on the capital and financing front once the restrictions to travel
activities and tourism end."

Key Group figures for fiscal 2020 according to preliminary evaluation
Unless otherwise stated, the following key figures for the period 1 January
2020 to 31 December 2020 include the business activities of the Mobility
business unit as well as the other continuing operations not allocated to
the Mobility business unit. Earnings after taxes for the discontinued
Leasing business unit that was sold in July 2020 are disclosed separately in
the Income Statement according to IFRS 5. Previous years' figures have been
adjusted for comparison purposes where necessary.

  * Consolidated revenue came to EUR 1.53 billion and was thus 38.8% below
    the previous year's figure of EUR 2.50 billion. Domestic revenue came to
    EUR 687.9 million (-30.1%) and foreign revenue to EUR 844.2% (-44.4%).
    Demand at numerous city offices rebounded during the course of the year
    and in parts reached pre-Corona levels again. This was offset by weak
    business at airports, due in part to the complete shutdown of national
    and international air traffic.

  * Corporate EBITDA, which refers to the consolidated operating result
    including interest result and depreciation and amortisation on rental
    vehicles, showed a profit of EUR 75.6 million and remained clearly in
    the positive range (2019: EUR 414.7 million).

  * Consolidated earnings before taxes (EBT), the key success figure for the
    Group, came to EUR -81.5 million and was thus within the guidance of the
    range last communicated as between EUR -70 million and EUR -95 million
    (2019: EUR 308.2 million). To this end almost all key cost positions
    were lowered to substantial degree.

  * SIXT reports pre-tax earnings from continued business operations to the
    amount of EUR -98.8 million (2019: EUR 225.3 million).

  * The Group's annual result (before minority interests), which includes
    the result from the discontinued Leasing business unit, achieved a
    positive value of EUR 2.0 million (2019: EUR 246.8 million).

  * Fleet investments significantly reduced: In 2020 SIXT added around
    175,400 vehicles to its (national and international) rental fleet (2019:
    250,900 vehicles) with a total value of EUR 5.48 billion (2019: EUR 7.43
    billion). This is equivalent to a decrease of 30.1% in the number of
    vehicles and 26.3% in the value of vehicles.

Outlook for full-year 2021
In view of the ongoing worldwide restrictions to national and international
private and business travel, some of which were tightened further at the
start of 2021, SIXT's market environment continues to be in the grip of much
uncertainty at present. It is not currently possible to foresee when demand
for mobility services will display any dynamism again and to what extend
touristic travel will be possible this year. It also remains to be seen what
mid- to long-term effects the pandemic will have on people's travel
behaviour or wider economic developments.

SIXT Group is very well prepared in all its markets for a revitalisation of
demand, given the strategic, personnel and financial direction taken in
2020. However, in view of the high market insecurities, the Managing Board
can currently not issue a forecast for fiscal year 2021.

About SIXT

Sixt SE with its registered office in Pullach near Munich, is a leading
international provider of high-quality mobility services. With its products
SIXT rent, SIXT share, SIXT ride and SIXT+ the company offers a uniquely
integrated mobility service across the fields of vehicle and commercial
vehicle rental, car sharing, chauffeur services and car subscriptions. The
products can be booked through one single app, which also integrates the
services of its renowned mobility partners. SIXT has a presence in around
110 countries around the globe. The company is characterized by consistent
customer orientation, a lived culture of innovation with strong
technological expertise, the high share of premium vehicles in its fleet and
an attractive price-performance ratio. The SIXT Group generated revenue of
EUR 3.31 billion in 2019 and ranks as one of the most profitable mobility
companies worldwide. Sixt SE is the parent company of the Group and has been
listed on the Frankfurt stock exchange since 1986 (ISIN ordinary share:
DE0007231326, ISIN preference share: DE0007231334).
https://about.sixt.com

Press contact
Sixt SE
Kathrin Greven / Stefanie Seidlitz
Sixt Central Press Office
Tel.: +49 - (0)89 - 74444 6700
E-mail: [e-mail]


The SIXT Group at a glance
(Preliminary data according to IFRS; rounding differences may occur)

    Revenue development                           Change
    in EUR million                 2020     2019    in %
    Operating revenue           1,520.2  2,494.3   -39.1

    Mobility Business Unit      1,520.2  2,494.3   -39.1
    Thereof rental revenue      1,362.4  2,252.0   -39.5
    Thereof other revenue from    157.8    242.3   -34.9
    rental business

    Other revenue                  11.9      7.1   +66.5

    Consolidated revenue        1,532.1  2,501.4   -38.8
  Earnings performance                                                Change
  in EUR million                                        2020    2019    in %
  Fleet expenses                                       429.3   615.3   -30.2
  Personnel expenses                                   339.3   461.9   -26.6
  Depreciation and amortisation expense                458.1   518.5   -11.7
  Net other operating income/expenses                 -354.2  -567.2   -37.6
  Earnings before net finance costs and taxes (EBIT)   -48.7   338.6   >-100
  Net finance costs                                    -32.8   -30.3    +8.3
  Earnings before taxes (EBT)                          -81.5   308.2   >-100
  Income tax expense                                    17.3    82.9   -79.2
  Result from continuing operations                    -98.8   225.3   >-100
  Result from discontinued operations, net of taxes    100.8    21.5   >+100
  Consolidated profit                                    2.0   246.8   -99.2
  Earnings per share (in EUR)                          -0.71    4.99
    Other key figures for the Group    31 Dec.  31 Dec.  Change in
                                          2020     2019          %
    Total assets (in EUR million)2     4,428.5  6,249.4      -29.1
    Rental vehicles (in EUR million)   2,204.6  3,033.4      -27.3
    Equity (in EUR million) 2          1,394.7  1,592.2      -12.4
    Equity ratio (in %)2                  31.5     25.5       +6.0
                                                            points

                                          2020     2019  Change in
                                                                 %
    Investments (in EUR billion)1         5.48     7.43      -26.3
    Average number of rental vehicles  113,800  150,700      -24.5
    (Group)
1 Value of vehicles added to the rental fleet

2 Prior-year balance sheet figures not adjusted in accordance with IFRS 5

[1] Source: IATA, February 2021
[2] Source: Euromonitor International, Travel 2019, November 2019


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02.03.2021 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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   Language:       English
   Company:        Sixt SE
                   Zugspitzstraße 1
                   82049 Pullach
                   Germany
   Phone:          [phone]
   Fax:            [phone]
   E-mail:         [e-mail]
   Internet:       http://ir.sixt.eu
   ISIN:           DE0007231326, DE0007231334 Sixt Vorzüge, DE000A1K0656
                   Sixt Namensaktien, DE000A2BPDU2 Sixt-Anleihe 2016/2022,
                   DE000A2G9HU0 Sixt-Anleihe 2018/2024, DE000A3H2UX0
                   Sixt-Anleihe 2020/2024
   WKN:            723132
   Indices:        SDAX
   Listed:         Regulated Market in Frankfurt, Munich; Regulated
                   Unofficial Market in Berlin, Dusseldorf, Hamburg,
                   Hanover, Stuttgart, Tradegate Exchange
   EQS News ID:    1172256



   End of News    DGAP News Service
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1172256 02.03.2021

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