Allane SE

Quarterly Report • May 8, 2019

Sixt Leasing SE

Group Quarterly Statement as of 31 March 2019

1. BUSINESS REPORT

1.1 GROUP BUSINESS PERFORMANCE

The Sixt Leasing Group overall performed as expected in the first quarter of the 2019 financial year.

The Group's contract portfolio in Germany and abroad (excluding franchise and cooperation partners) amounted to 125,600 contracts as of 31 March 2019, down 3.1% from 31 December 2018 (129,700 contracts).

Consolidated revenue in the first quarter of 2019 increased by 15.2% to EUR 232.7 million (Q1 2018: EUR 202.0 million) compared to the same period in the previous year. This is mainly attributable to the significant increase in sales revenue. Operating revenue, which does not include the proceeds from vehicle sales, decreased by 0.6% to EUR 119.7 million (Q1 2018: EUR 120.3 million). Sales revenue from the sale of leasing returns and marketing of customer vehicles in Fleet Management rose in particular due to the considerably higher number of sold leasing returns in the Online Retail business field by 38.5% to EUR 113.0 million (Q1 2018: EUR 81.6 million).

Earnings before interest, taxes, depreciation and amortisation (EBITDA) decreased in the first three months of 2019 by 6.1% to EUR 57.2 million (Q1 2018: EUR 60.9 million) compared to the same period in the previous year. As expected, earnings before taxes (EBT) saw a decline of 12.7% to EUR 7.0 million (Q1 2018: EUR 8.0 million). The operating return on revenue (EBT/operating revenue) consequently amounted to 5.9% (Q1 2018: 6.7%).

Sixt Leasing Group	Q1	Q1	Change
in EUR million	2019	2018	in %
Consolidated revenue	232.7	202.0	15.2
Thereof operating revenue	119.7	120.3	-0.6
Thereof sales revenue	113.0	81.6	38.5
Earnings before interest, taxes, depreciation and amortisation (EBITDA)	57.2	60.9	-6.1
Earnings before taxes (EBT)	7.0	8.0	-12.7
Operating return on revenue (%)	5.9	6.7	-0.8 points

1.2 LEASING BUSINESS UNIT

In the Leasing business unit, which consists of the business fields Online Retail and Fleet Leasing, the contract portfolio totalled 83,800 contracts as at the end of the first quarter, down 4.4% from 31 December 2018 (87,700 contracts). At the same time, the contract portfolio in the Online Retail business field declined by 5.0% to 42,400 contracts (31 December 2018: 44,700 contracts), with additional vehicle returns from the 1&1 campaign having a pronounced impact. The contract portfolio in the Fleet Leasing business field saw a decline of 3.7% to 41,400 contracts compared with the end of 2018 (31 December 2018: 43,000 contracts), in particular due to additional vehicle returns as a result of the drop-out of a volume customer last year.

Key figures Leasing business unit	Q1	Q1	Change
in EUR million	2019	2018	in %
Total revenue	206.6	177.1	16.7
Thereof leasing revenue (finance rate)	56.4	58.3	-3.2
Thereof other revenue from leasing business	47.8	48.9	-2.4
Thereof sales revenue	102.4	69.9	46.6
Earnings before interest, taxes, depreciation and amortisation (EBITDA)	56.3	59.8	-5.7
Earnings before taxes (EBT)	6.2	7.0	-11.3
Operating return on revenue (%)	6.0	6.5	-0.5 points

1.3 FLEET MANAGEMENT BUSINESS UNIT

In the Fleet Management business unit, the contract portfolio remained virtually stable with 41,800 contracts as at the end of the first quarter of 2019 (31 December 2018: 42,000 contracts; -0.6%)

Key figures Fleet Management business unit	Q1	Q1	Change
in EUR million	2019	2018	in %
Total revenue	26.1	24.9	4.8
Thereof Fleet management revenue	15.5	13.1	17.9
Thereof Sales revenue	10.6	11.8	-9.8
Earnings before interest, taxes, depreciation and amortisation (EBITDA)	0.8	1.1	-23.3
Earnings before taxes (EBT)	0.8	1.0	-22.1
Operating return on revenue (%)	5.2	7.9	-2.7 points

1.4 FINANCIAL POSITION

Equity

The equity of the Sixt Leasing Group amounted to EUR 222.6 million as of 31 March 2019, an increase of EUR 5.8 million compared to 31 December 2018 (EUR 216.8 million). The equity ratio improved by 0.8 percentage points from 15.6% to 16.4% with total assets slightly down.

Liabilities

As of 31 March 2019, non-current liabilities and provisions totalled EUR 832.7 million (31 December 2018: EUR 853.6 million). The decline of EUR 20.9 million was mainly due to non-current financial liabilities decreasing by EUR 22.4 million to EUR 803.2 million (31 December 2018: EUR 825.5 million).

Current liabilities and provisions as of 31 March 2019 totalled EUR 303.7 million (31 December 2018: EUR 322.4 million). The decline of EUR 18.7 million was mainly due to current financial liabilities decreasing by EUR 27.8 million to EUR 172.8 million (31 December 2018: EUR 200.6 million).

1.5 INVESTMENTS

The Sixt Leasing Group added vehicles with a total value of EUR 93.4 million to its leasing fleet in the first quarter of 2019 (Q1 2018: EUR 157.2 million; -40.6%). During the same quarter in the previous year, there were still some vehicles being delivered from the 1&1 campaign held in 2017 and therefore added to the leasing fleet.

2. EVENTS SUBSEQUENT TO THE REPORTING DATE

After the end of the first quarter of the 2019 financial year, no significant events, that would affect the net assets, financial position and results of operations of the Group and the Company, have occurred.

3. REPORT ON 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% 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.

4. FINANCIAL FIGURES FOR SIXT LEASING GROUP AS AT 31 MARCH 2019

4.1 GROUP INCOME STATEMENT AND STATEMENT OF COMPREHENSIVE INCOME

Consolidated Income Statement	Q1	Q1
in EUR thou.	2019	2018
Revenue	232,690	201,971
Other operating income	2,259	2,089
Fleet expenses and cost of lease assets	161,115	127,543
Personnel expenses	10,606	9,108
Other operating expenses	6,066	6,557
Earnings before interest, taxes, depreciation and amortisation (EBITDA)	57,162	60,851
Depreciation and amortisation expense	47,251	49,228
Earnings before interest and taxes (EBIT)	9,911	11,623
Net finance costs	-2,896	-3,585
Earnings before taxes (EBT)	7,015	8,038
Income tax expense	1,358	2,158
Consolidated profit	5,656	5,880
Of which attributable to minority interests	-4	-
Of which attributable to shareholders of Sixt Leasing SE	5,661	5,880
Earnings per share – basic and diluted (in Euro)	0.27	0.29

Consolidated statement of comprehensive income	Q1	Q1
in EUR thou.	2019	2018
Consolidated profit	5,656	5,880
Other comprehensive income (not recognised in the income statement)	-79	-74
Thereof components that could be reclassified to income statement in the future
Currency translation gains/losses	86	-74
Change of derivative financial instruments in hedge relationship	-223	-
Related deferred taxes	58	-
Total comprehensive income	5,578	5,806
Of which attributable to minority interests	-169	-
Of which attributable to shareholders of Sixt Leasing SE	5,747	5,806

4.2 GROUP BALANCE SHEET

Assets
in EUR thou.	31 Mar. 2019	31 Dec. 2018
Non-current assets
Goodwill	1,753	1,752
Intangible assets	8,545	7,766
Equipment	15,691	954
Lease assets	1,151,647	1,204,419
Financial assets	120	126
Other receivables and assets	1,726	1,883
Deferred tax assets	2,073	1,405
Total non-current assets	1,181,554	1,218,305
Current assets
Inventories	48,819	50,725
Trade receivables	80,058	80,114
Receivables from related parties	6,421	3,159
Other receivables and assets	38,078	31,515
Income tax receivables	2,788	2,631
Bank balances	1,175	6,243
Total current assets	177,339	174,386
Total assets	1,358,893	1,392,691

Equity and liabilities
in EUR thou.	31 Mar. 2019	31 Dec. 2018
Equity
Subscribed capital	20,612	20,612
Capital reserves	135,045	135,045
Other reserves	67,737	61,990
Minority interests	-822	-893
Total equity	222,571	216,753
Non-current liabilities and provisions
Provisions for pensions	204	199
Financial liabilities	803,153	825,512
Other liabilities	1,337	1,070
Deferred tax liabilities	27,956	26,786
Total non-current liabilities and provisions	832,651	853,568
Current liabilities and provisions
Other provisions	4,217	3,752
Income tax liabilities	356	195
Financial liabilities	172,752	200,591
Trade payables	63,609	53,757
Liabilities to affiliated companies	5,716	3,275
Other liabilities	57,023	60,800
Total current liabilities and provisions	303,671	322,370
Total equity and liabilities	1,358,893	1,392,691

4.3 GROUP CASH FLOW STATEMENT

Consolidated cash flow statement	Q1	Q1
in EUR thou.	2019	2018
Operating activities
Consolidated profit	5,656	5,880
Income taxes recognised in income statement	558	239
Income taxes received / paid (net)	-554	-1,385
Financial result recognised in income statement1	2,890	3,585
Interest received	35	23
Interest paid	-3,648	-5,181
Depreciation and amortisation	47,251	49,228
Income from disposal of fixed assets	-387	-1,756
Other (non-)cash expenses and income	-1,572	2,887
Gross Cash flow	50,228	53,519
Proceeds from disposal of lease assets	102,424	69,872
Payments for investments in lease assets	-93,447	-157,214
Change in inventories	1,906	1,696
Change in trade receivables	56	-2,890
Change in trade payables	9,853	-22,288
Change in other net assets	-10,231	34,581
Net cash flows from/used in operating activities	60,789	-22,723
Investing activities
Payments for investments in intangible assets and equipment	-1,343	-779
Net cash flows used in investing activities	-1,343	-779
Financing activities
Proceeds from bonds, borrower's note loans and bank loans	-	33,388
Payments made for redemption of borrower's note loans and bank loans	-32,980	-14,517
Proceeds from short-term financial liabilities/ Payments made for short-term financial liabilities2	-31,539	8,555
Net cash flows used in/from financing activities	-64,519	27,426
Net change in cash and cash equivalents	-5,073	3,924
Effect of exchange rate changes on cash and cash equivalents	5	-15
Cash and cash equivalents at 1 Jan.	6,243	5,970
Cash and cash equivalents at 31 Mar.	1,175	9,878

¹ Excluding income from investments

² Short-term borrowings with a maturity period of up to three months and quick turnover

4.4 ADDITIONAL FINANCIAL INFORMATION

Revenue

Revenue is broken down as follows:

Revenue	Q1	Q1	Change
in EUR thou.	2019	2018	in %
Leasing Business Unit
Leasing revenue (finance rate)	56,392	58,261	-3.2
Other revenue from leasing business	47,771	48,935	-2.4
Sales revenue	102,424	69,872	46.6
Total	206,587	177,068	16.7
Fleet Management Business Unit
Fleet management revenue	15,492	13,144	17.9
Sales revenue	10,611	11,759	-9.8
Total	26,103	24,903	4.8
Group total	232,690	201,971	15.2

Fleet expenses and cost of lease assets

Fleet expenses and cost of lease assets are broken down as follows:

Fleet expenses and cost of lease assets	Q1	Q1	Change
in EUR thou.	2019	2018	in %
Selling expenses 1	112,352	81,494	37.9
Fuel	19,758	17,136	15.3
Repair, maintenance and reconditioning	18,511	17,470	6.0
Insurance	2,182	2,098	4.0
External rent expenses	1,591	1,578	0.8
Vehicle licenses	1,164	954	22.0
Transportation	1,422	2,489	-42.9
Taxes and dues	698	796	-12.3
Radio license fees	421	421	0.0
Vehicle return expenses	1,268	638	98.7
Other expenses	1,748	2,468	-29.2
Group total	161,115	127,543	26.3

1 Includes expenses from write-downs on lease assets intended for sale

Depreciation and amortisation

Depreciation and amortisation are split up as follows:

Depreciation and amortisation	Q1	Q1	Change
in EUR thou.	2019	2018	in %
Lease assets	46,403	49,058	-5.4
Equipment	553	55	>100
Intangible assets	295	115	>100
Group total	47,251	49,228	-4.0

Other operating expenses

Other operating expenses are broken down as follows:

Other operating expenses	Q1	Q1	Change
in EUR thou.	2019	2018	in %
Expenses for buildings	259	426	-39.2
Other selling and marketing expenses	888	873	1.7
Expenses from write-downs of receivables	963	1,301	-25.9
Audit, legal, advisory costs, and investor relations expenses	673	638	5.5
Other personnel services	1,131	844	33.9
IT expenses	745	661	12.7
Expenses for foreign currency translation	369	977	-62.2
Miscellaneous expenses	1,039	838	24.0
Group total	6,066	6,557	-7.5

Net finance costs

The net finance costs are as follows:

Net finance costs Q1 Q1 in EUR thou. 2019 2018 Other interest and similar income 66 86 Other interest and similar income from related parties 3 2 Interest and similar expenses -2,925 -1,721 Interest and similar expenses for related parties -0 -1,443 Other net financial result -39 -509 Group total -2,896 -3,585

Group segment reporting

The segment information for the first three months of 2019 (compared to the first three months of 2018) is as follows:

By business unit	Leasing			Fleet Management		Consolidation		Group
in EUR million	2019	2018	2019	2018	2019	2018	2019	2018
External revenue	206.6	177.1	26.1	24.9	-	-	232.7	202.0
Internal revenue	-0.0	-0.1	0.0	0.1	-0.0	-0.0	-	-
Total revenue	206.6	177.0	26.1	25.0	-0.0	-0.0	232.7	202.0
Fleet expenses and cost of lease assets	137.3	104.9	23.9	22.6	-0.0	-0.0	161.1	127.5
EBITDA1	56.3	59.8	0.8	1.1	-	-	57.2	60.9
Depreciation and amortisation expense	47.2	49.2	0.0	0.0	-	-	47.3	49.2
EBIT2	9.1	10.5	0.8	1.1	-	-	9.9	11.6
Net finance costs	-2.9	-3.5	-0.0	-0.1	-	-	-2.9	-3.6
EBT3	6.2	7.0	0.8	1.0	-	-	7.0	8.0

¹ Corresponds to earnings before interest, taxes, depreciation and amortisation (EBITDA)

² Corresponds to earnings before interest and taxes (EBIT)

³ Corresponds to earnings before taxes (EBT)

Due to rounding it is possible that individual figures in this Group Quarterly Statement may not add up exactly to the totals shown. For the same reason, the percentage figures presented may not exactly reflect the absolute figures they relate to.

Pullach, 8 May 2019

Sixt Leasing SE Managing Board

Contact Issuer

Sixt Leasing SE Sixt Leasing SE Zugspitzstrasse 1 Zugspitzstrasse 1 82049 Pullach 82049 Pullach

ir@sixt-leasing.com Phone +49 (0) 89/7 44 44 - 4518 Telefax +49 (0) 89/7 44 44 - 84518

Website Investor Relations http://ir.sixt-leasing.com Further websites http://www.sixt-leasing.com