Sixt SE

Interim / Quarterly Report • Aug 8, 2023

Interim Report as at 30 June 2023

CONTENT

1. INTERIM REPORT OF THE GROUP	2
1.1 Principles of the Group	2
1.2 Economic report	2
1.2.1 Key developments during the reporting period	2
1.2.2 Revenue development	3
1.2.3 Earnings development	3
1.2.4 Asset position	5
1.2.5 Financial position	5
1.2.6 Liquidity position	5
1.2.7 Investments	6
1.3 Report on risks and opportunities	6
1.4 Forecast report	6
2. INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS AT 30 JUNE 2023	7
2.1 Consolidated statement of income and statement of comprehensive income	7
2.2 Consolidated statement of financial position	8
2.3 Consolidated statement of cash flows	9
2.4 Consolidated statement of changes in equity	10
3. CONDENSED NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD FROM
1 JANUARY TO 30 JUNE 2023	11
3.1 General disclosures	11
3.2 Scope of consolidation	11
3.3 Explanations of selected items of the consolidated statement of income	12
3.4 Explanations of selected items of the consolidated statement of financial position	14
3.5 Segment reporting	19
3.6 Contingent liabilities	20
3.7 Related party disclosure	20
3.8 Events subsequent to reporting date	20
4. RESPONSIBILITY STATEMENT	20

Due to the rounding it is possible that individual figures presented in this Interim Report may not add up exactly to the totals shown and that the half-year figures listed may not follow from adding up the individual quarterly figures. Furthermore, the percentage figures presented may not exactly reflect the absolute figures they relate to.

1. INTERIM REPORT OF THE GROUP

1.1 PRINCIPLES OF THE GROUP

Sixt SE, domiciled in Zugspitzstrasse 1, 82049 Pullach, Germany, is registered in section B of the commercial register at the Munich Local Court, under the docket number 206738. The company was formed in 1986 as a result of a reorganisation of "Sixt Autovermietung GmbH", established in 1979, and has traded since then as "Sixt Aktiengesellschaft", which in 2013 was transferred into "Sixt SE". The company floated on the stock market in 1986. It has registered branches in Leipzig and at Munich airport. The company has been established for an indefinite period.

At the reporting date 30 June 2023, the company's subscribed capital amounted to EUR 120,174,996.48. Both ordinary shares and non-voting preference shares have been issued, both categories as no-par value shares with a notional amount of EUR 2.56 per share. All shares have been fully paid up. The largest shareholder is Erich Sixt Vermögensverwaltung GmbH, Pullach, which holds 58.3% of the ordinary shares and voting rights of the subscribed capital as at reporting date. Erich Sixt Vermögensverwaltung GmbH, Pullach, is the parent of Sixt SE, Pullach.

Sixt defines itself as a premium service provider and considers this to be an important unique selling proposition in international competition. A key element of the premium strategy is the high proportion of fleet vehicles coming from renowned manufacturer brands. Sixt also aspires to be the innovation leader in the mobility industry. A key role in this is accorded to the mobility platform ONE, which was launched in 2019. Its basis is the consistent digitalisation of the product portfolio (via the SIXT app) as well as of sales channels and operating business processes. The SIXT app provides access to the products SIXT rent, SIXT share, SIXT ride and the car subscription offer SIXT+ and also integrates the services of renowned mobility partners such as ride hailing providers, taxi centres and other mobility providers, which can also be booked via the app. Sixt is represented through its subsidiaries in the core European countries of Germany, France, Spain, the UK, the Netherlands, Austria, Switzerland, Italy, Belgium, Luxembourg, and Monaco and thus covers the largest part of the European market, making it one of the continent's leading mobility service providers. Sixt also operates subsidiaries in the US and in Canada. In many other European and non-European countries, Sixt is additionally represented by franchise and cooperation partners.

1.2 ECONOMIC REPORT

1.2.1 KEY DEVELOPMENTS DURING THE REPORTING PERIOD

In the second quarter of 2023, Sixt was able to further increase the already significant revenue growth in the first quarter and generated revenues of EUR 925.1 million (Q2 2022: EUR 743.8 million; +24.4%). In the first half of 2023, Group revenues increased by 22.3% to EUR 1.62 billion (H1 2022: EUR 1.32 billion). In the second quarter of 2023, demand remained strong in a stable price environment. Thus, all three segments, Germany, Europe and North America, contributed to the revenue growth, demonstrating Sixt's diversified and thus resilient business model.

Consolidated earnings before taxes (EBT) reached EUR 131.9 million in the reporting quarter (Q2 2022: EUR 129.8 million) and EUR 165.1 million in the first six months (H1 2022: EUR 223.2 million). Corporate EBITDA at Group level was EUR 177.6 million in the second quarter (Q2 2022: EUR 164.4 million) and EUR 250.7 million in the first six months (H1 2022: EUR 292.0 million).

Sixt again significantly expanded its rental fleet in the first half of the year. This was due to the established long-term business relationships with vehicle manufacturers, continued high customer demand and improved vehicle availability. At EUR 4.62 billion, the Group's rental assets at mid-year were EUR 782.8 million (+20.4%) higher than at the end of December 2022 and EUR 1.29 billion higher than at 30 June 2022 (EUR 3.32 billion). In the first half of 2023, the average fleet size in the Sixt corporate countries was approximately 157,700 vehicles, 21.9% more than in the same period of the previous year (approximately 129,400 vehicles).

In addition to successful fleet management, forward-looking investments in people, fleet and digitalisation have been instrumental in meeting the high demand in all markets.

In Germany, Sixt had a nationwide network of 350 stations at 30 June 2023 (H1 2022: 381 stations). At the end of the first half of 2023, Sixt was represented at almost all major traffic hubs in the United States, with 100 stations (H1 2022: 99 stations), as well as three stations in Canada. The number of stations in Sixt's European countries (excluding Germany) was 437 (H1 2022: 443 stations). In addition, there were a further 1,189 stations in Sixt franchise countries (H1 2022: 1,192 stations), bringing the total number of stations to 2,079 at the end of June (H1 2022: 2,115 stations). Sixt continues to grow in the US market, opening four new airport locations in the US in the first half of 2023: Pittsburgh International Airport, Hickam Air Force Base, Washington-Dulles International Airport and Jacksonville International Airport.

The expansion at key airports and business centres allows Sixt to further support its growing corporate customer base in the US and strengthen its network of stations on the East Coast, particularly at major US airline hubs. Sixt currently has stations at 42 important US airports.

1.2.2 REVENUE DEVELOPMENT

The Sixt Group reported revenues of EUR 1.62 billion for the first six months of 2023, an increase of 22.3% compared to the same period last year (H1 2022: EUR 1.32 billion). Growth was achieved across all three segments. Group revenues generated in the segment Germany increased significantly by 26.9% to EUR 492.1 million in the first half of 2023 (H1 2022: EUR 387.7 million). Group revenues attributable to the segment Europe (excluding Germany) were 645.1 million (H1 2022: EUR 536.4 million), up 20.3% year on year. Group revenue generated in the segment North America in the first six months of the current year also increased to EUR 478.1 million, up 21.1% from EUR 394.7 million in the same period last year. As a result, Sixt has a regionally very diversified revenue structure.

In the second quarter of 2023 the Group reported revenues of EUR 925.1 million compared to EUR 743.8 million in the same quarter of the previous year. A particularly dynamic development was seen in the segment Germany with revenues of EUR 274.1 million (Q2 2022: EUR 208.6 million; 31.4%), partly due to strong growth in the business customer segment. The segment Europe generated revenues of EUR 396.8 million (Q2 2022: EUR 323.6 million; 22.6%). The segment North America generated revenues of EUR 251.7 million (Q2 2022: EUR 208.6 million; 20.7%).

Revenue key figures Sixt Group			Change			Change
in EUR million	H1 2023	H1 2022	in %	Q2 2023	Q2 2022	in %
Segment Germany	492.1	387.7	26.9	274.1	208.6	31.4
Segment Europe	645.1	536.4	20.3	396.8	323.6	22.6
Segment North America	478.1	394.7	21.1	251.7	208.6	20.7
Other	4.9	5.7	-14.1	2.5	3.0	-17.9
Consolidated revenue	1,620.2	1,324.6	22.3	925.1	743.8	24.4

1.2.3 EARNINGS DEVELOPMENT

At EUR 110.0 million, other operating income in the first half of the reporting year was up 3.8% compared to the same period last year (H1 2022: EUR 106.0 million).

Fleet expenses increased by 33.3% to EUR 365.7 million in the first half of 2023 (H1 2022: EUR 274.4 million). The increase mainly relates to expenses for fuel, insurance and repairs, maintenance, and reconditioning which are driven by the significantly larger fleet as well as continued general price increases..

Personnel expenses increased by 27.4% to EUR 317.5 million in the first six months of the financial year, compared to EUR 249.2 million in the first half of 2022, due to the expansion of the workforce, especially in strategically important areas such as stations, service centres and also in digitalisation, as well as wage and salary increases in line with the market.

Depreciation and amortisation expense increased by 34.0% to EUR 337.2 million in the first six months (H1 2022: EUR 251.6 million). The increase is due in particular to a 36.9% rise in depreciation on rental vehicles to EUR 251.7 million (H1 2022: EUR 183.9 million). This was mainly driven by the larger average fleet in the reporting period compared to the previous year.

Other operating expenses increased by 21.3% to EUR 504.9 million after EUR 416.4 million in the first half of 2022. The largest increases were in revenue-related commission expenses, marketing expenses and other personnel services.

The Sixt Group thus reported earnings before interest and taxes (EBIT) of EUR 204.8 million for the first half of 2023, compared with EBIT of EUR 239.0 million in the first half of 2022. In the second quarter, EBIT reached EUR 157.4 million (Q2 2022: EUR 137.5 million).

The financial result for the first six months deteriorated by 151.0% from EUR -15.8 million to EUR -39.7 million compared to the previous year due to increased interest expenses.

Earnings before taxes (EBT) developed according to plan in the first six months and reached a value of EUR 165.1 million after EUR 223.2 million in the first half of the previous year. EBT in the second quarter reached EUR 131.9 million, after a corresponding figure of EUR 129.8 million in the previous year.

The Group's return on revenue thus amounts to 10.2% in the first half of 2023 and to 14.3% in the second quarter of 2023.

Consolidated profit after taxes amounted to EUR 118.7 million in the first six months of the reporting year (H1 2022: EUR 160.3 million), of which the second quarter accounted for EUR 96.6 million (Q2 2022: EUR 93.8 million).

On the basis of 46.94 million shares outstanding (weighted average of the first six months for ordinary and preference shares taking treasury shares into account; same period of the previous year: 46.94 million shares outstanding), earnings per share (basic) for the first six months of the year amounted to EUR 2.53, compared to EUR 3.41 in the same period of the previous year.

Corporate EBITDA, i.e. EBITDA including additional consideration of depreciation on rental vehicles and the attributable interest result, reached EUR 250.7 million at Group level in the first half of 2023 (H1 2022: EUR 292.0 million). All segments made a positive contribution to earnings in the first six months of 2023. The segment North America achieved a Corporate EBITDA of EUR 100.5 million (H1 2022: EUR 99.1 million), while the segment Europe achieved a Corporate EBITDA of EUR 113.9 million (H1 2022: EUR 132.2 million). Corporate EBITDA in the segment Germany decreased in the first half of the year from EUR 60.1 million in the previous year to EUR 34.9 million in the current financial year.

In the second quarter 2023, Corporate EBITDA for the Sixt Group amounted to EUR 177.6 million (Q2 2022: EUR 164.4 million). The segment North America recorded Corporate EBITDA of EUR 54.2 million (Q2 2022: EUR 47.0 million). The segment Europe achieved a Corporate EBITDA of EUR 96.3 million (Q2 2022: EUR 90.5 million) and for the segment Germany the Corporate EBITDA for the months April to June 2023 was EUR 25.5 million (Q2 2022: EUR 25.7 million).

Corporate EBITDA1			Change			Change
in EUR million	H1 2023	H1 2022	in %	Q2 2023	Q2 2022	in %
Segment Germany	34.9	60.1	-41.9	25.5	25.7	-0.9
Segment Europe	113.9	132.2	-13.8	96.3	90.5	6.4
Segment North America	100.5	99.1	1.4	54.2	47.0	15.4
Other	1.4	0.7	96.9	1.6	1.2	36.2
Group total	250.7	292.0	-14.2	177.6	164.4	8.0

¹ Since end of 2022 depreciation of rental vehicles, which is part of Corporate EBITDA, contains the depreciation of right of use assets for rental vehicles financed by lease contracts, that was reported under depreciation of property and equipment previously. To enhance comparability, the prior year comparative figures for Corporate EBITDA have been adjusted accordingly.

1.2.4 ASSET POSITION

As at the reporting date 30 June 2023, the Group's total assets of EUR 6.53 billion were EUR 977.3 million higher than as at 31 December 2022 (EUR 5.55 billion).

Non-current assets increased by a total of EUR 172.2 million to EUR 902.9 million (31 December 2022: EUR 730.7 million). The increase is mainly due to the increase of rights of use assets for rental stations as a result of the expansion of the station network, especially at airports.

Current assets increased by EUR 805.1 million from EUR 4.82 billion on the reporting date to reach EUR 5.63 billion at the end of June 2023. Rental assets increased in line with the expansion of the fleet and amounted to EUR 4.62 billion (31 December 2022: EUR 3.83 billion). The Group's cash and bank balances declined slightly to EUR 16.6 million as at the reporting date (31 December 2022: EUR 26.6 million).

1.2.5 FINANCIAL POSITION

Equity

At EUR 1.80 billion, the Sixt Group's equity at the reporting date was EUR 174.4 million lower than at the end of 2022 (EUR 1.98 billion) due to the dividend payment of EUR 287.2 million. Because of the simultaneous increase in total assets, the equity ratio fell to 27.6% (31 December 2022: 35.7%), but remains well above the defined minimum value of 20% and at a level well above the average for the rental industry.

Liabilities

Non-current liabilities and provisions increased by EUR 617.9 million to EUR 2.32 billion as at 30 June 2023 (31 December 2022: EUR 1.70 billion). The increase was mainly due to higher financial liabilities resulting from the issuance of a new bond and new borrower's note loans.

Current liabilities and provisions amounted to a total of EUR 2.40 billion as at 30 June 2023, EUR 533.8 million higher than at the end of 2022 (EUR 1.87 billion). The main reason for the increase was the higher trade payables as of the reporting date and the higher financial liabilities as a result of the increase in the fleet.

1.2.6 LIQUIDITY POSITION

The Sixt Group reports a gross cash flow of EUR 443.7 million for the first half of 2023 (H1 2022: EUR 482.4 million). After changes in net working capital, the cash outflow from operating activities is calculated at EUR 295.6 million for the first six months, compared to a cash inflow of EUR 60.6 million in the first half of 2022. The deterioration of EUR 356.3 million was mainly due to cash outflows of EUR 797.1 million (H1 2022: EUR 455.7 million) from the further year-on-year increase in the number of rental vehicles.

Investing activities resulted in a cash outflow of EUR 30.0 million due to expenditures for investments in intangible assets and property and equipment (H1 2022: cash inflow of EUR 30.8 million).

Financing activities resulted in a total cash inflow of EUR 315.6 million (H1 2022: cash outflow of EUR 271.8 million), mainly due to proceeds from borrower's note loans, bonds and long-term bank loans taken out.

In terms of total cash flows, cash and cash equivalents, which correspond to the balance sheet item "Cash, cash equivalents and bank balances", decreased by EUR 10.0 million as at 30 June 2023 compared to the value at the end of 2022 after exchange raterelated changes (H1 2022: reduction of EUR 178.2 million).

1.2.7 INVESTMENTS

In line with its growth plan, Sixt has continued to expand its fleet in order to meet the current high demand and to be prepared for the upcoming third quarter. Against this background, around 100,900 vehicles (H1 2022: approx. 60,500 vehicles) with a total value of EUR 3.69 billion (H1 2022: EUR 2.01 billion) were added to the Sixt rental fleet between January and June 2023. Compared to the same period in 2022, this corresponds to an increase of around 66.8% in the number of vehicles and 83.4% in the investment volume.

1.3 REPORT ON RISKS AND OPPORTUNITIES

The management report in the Annual Report 2022 contains extensive details on the risks Sixt Group faces, its risk management system and its internal control and risk management system relating to accounting procedures. The risk and opportunity profile of the Sixt Group has not changed in the first six months of 2023 compared to the information provided in the Annual Report 2022, with the exception of the aspects described below.

Economic uncertainties persist in the markets relevant to the Sixt Group. The first six months of the financial year were characterised by persistently high inflation rates, which could have a negative impact on earnings in both the business and private customer segments on the demand side and in procurement. The International Monetary Fund (IMF) lowered its economic forecast for Germany, Sixt's home market, in its latest publication (as of July 2023) and now expects the German economy to contract by 0.3%.

In conjunction with possible further economic restrictions and sanctions in connection with the war in Ukraine and a possible escalation of the war with negative effects on the supply situation, especially with regard to energy or food, negative economic developments and further inflationary effects cannot be ruled out. This could have a significant impact on the overall economic development, the solvency of customers, travel behaviour and thus the demand for mobility products and the general willingness to pay. A downward price trend in the used car market, triggered for example by a better availability of new and used cars, could have a negative impact on sales of rental vehicles. A further increase in interest rates could also have a negative impact on refinancing costs. In addition, the possibility of a further increase in key interest rates means that a reoccurrence of the euro crisis cannot be ruled out.

1.4 FORECAST REPORT

Inflation in the euro zone is currently still much higher than in the US, while economic growth is at the same time much weaker. This is true for Germany in particular, where the economic outlook has recently deteriorated again. For the full year 2023, Sixt nevertheless still expects a significant increase in consolidated revenue compared to the EUR 3.07 billion achieved in 2022 and a consolidated EBT in the range of EUR 430 to 550 million. The course of business in the remainder of the summer season will be the determining factor in the further development.

2. INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS AT 30 JUNE 2023

2.1 CONSOLIDATED STATEMENT OF INCOME AND STATEMENT OF COMPREHENSIVE INCOME

H1	H1	Q2	Q2
2023	2022	2023	2022
1,620,180	1,324,561	925,095	743,787
109,992	105,976	52,545	68,454
365,709	274,355	197,780	142,607
317,499	249,169	163,817	129,577
337,198	251,599	182,195	150,211
504,950	416,375	276,469	252,386
204,815	239,040	157,378	137,461
-39,681	-15,810	-25,496	-7,685
165,134	223,230	131,882	129,776
46,394	62,976	35,309	35,959
118,740	160,254	96,573	93,817
118,740	160,254	96,573	93,817
2.53	3.41	2.06	1.99
2.53	3.41	2.06	1.99

Consolidated Statement of Comprehensive Income	H1	H1	Q2	Q2
in EUR thousand	2023	2022	2023	2022
Consolidated profit/loss	118,740	160,254	96,573	93,817
Other comprehensive income (not recognised in the income statement)	-6,012	40,767	7,924	33,146
Components that could be recognised in the income statement in the future
Currency translation gains/losses	-6,880	43,660	6,996	34,963
Changes in the fair value of derivative financial instruments in hedge relationships	1,090	-2,648	1,246	-2,081
Related deferred taxes	-272	660	-310	519
Components that could not be recognised in the income statement in the future
Remeasurement of defined benefit plans	139	32	-0	0
Related deferred taxes	-40	-9	0	-0
Remeasurement of equity investments	-48	-932	-7	-255
Related deferred taxes	-	4	-	-
Total comprehensive income	112,729	201,021	104,497	126,963
Of which attributable to shareholders of Sixt SE	112,729	201,021	104,497	126,963

2.2 CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Assets
in EUR thousand	30 Jun. 2023	31 Dec. 2022
Non-current assets
Goodwill	25,140	24,923
Intangible assets	47,008	44,001
Property and equipment	797,055	633,349
Investment property	6,595	6,656
Financial assets	1,386	1,393
Other receivables and assets	11,074	7,968
Deferred tax assets	14,631	12,395
Total non-current assets	902,889	730,685
Current assets
Rental vehicles	4,616,209	3,833,393
Inventories	115,244	50,039
Trade receivables	476,550	535,852
Other receivables and assets	357,295	349,531
Income tax receivables	43,825	25,216
Cash, cash equivalents and bank balances	16,560	26,569
Total current assets	5,625,682	4,820,600
Total assets	6,528,571	5,551,285

Equity and liabilities
in EUR thousand	30 Jun. 2023	31 Dec. 2022
Equity
Subscribed capital	120,175	120,175
Capital reserves	204,771	204,771
Other reserves	1,480,036	1,654,463
Total equity	1,804,981	1,979,408
Non-current liabilities and provisions
Provisions for pensions and other post-employment benefits	3,074	2,680
Other provisions	21,393	19,188
Financial liabilities	2,226,084	1,626,937
Other liabilities	1,417	3,177
Deferred tax liabilities	69,184	51,300
Total non-current liabilities and provisions	2,321,152	1,703,283
Current liabilities and provisions
Other provisions	150,497	158,673
Income tax liabilities	64,633	74,396
Financial liabilities	1,128,526	878,194
Trade payables	856,597	636,938
Other liabilities	202,183	120,394
Total current liabilities and provisions	2,402,438	1,868,594
Total equity and liabilities	6,528,571	5,551,285

2.3 CONSOLIDATED STATEMENT OF CASH FLOWS

Consolidated Statement of Cash Flows	H1	H1
in EUR thousand	2023	2022
Operating activities
Consolidated profit/loss	118,740	160,254
Income taxes recognised in the income statement	31,465	35,160
Income taxes paid	-59,836	-35,802
Financial result recognised in the income statement1	39,910	15,754
Interest received	2,101	273
Interest paid	-30,929	-11,825
Dividends received	132	400
Depreciation and amortisation expense including impairments	337,100	251,599
Income from disposal of fixed assets	995	538
Other (non-)cash expenses and income	4,012	66,012
Gross cash flow	443,690	482,363
Depreciation and impairments on rental vehicles2	-224,101	-176,133
Gross cash flow before changes in working capital	219,589	306,230
Change in rental vehicles2	-797,070	-455,687
Change in inventories	-65,205	-16,714
Change in trade receivables	59,302	35,457
Change in trade payables	219,659	267,608
Change in other net assets	68,075	-76,261
Net cash flows used in/from operating activities	-295,650	60,635
Investing activities
Proceeds from the disposal of intangible assets, property and equipment	29	-
Payments for investments in intangible assets, property and equipment	-29,991	-19,158
Payments for investments in short-term deposits	-34	-
Payments from short-term deposits	-	50,000
Net cash flows used in/from investing activities	-29,995	30,842
Financing activities
Dividends paid	-287,155	-174,022
Payments received from borrower's note loans taken out, bonds and bank loans	973,128	-
Payments made for redemption of borrower's note loans, bonds, bank loans and lease liabilities	-133,798	-67,814
Payments made for redemption of/payments received from short-term financial liabilities taken out3	-236,531	-29,949
Net cash flows from/used in financing activities	315,643	-271,785
Net change in cash and cash equivalents	-10,001	-180,308
Effect of exchange rate changes on cash and cash equivalents	-7	2,108
Cash and cash equivalents on 1 Jan.	26,569	265,835
Cash and cash equivalents on 30 Jun.	16,560	87,634

¹ Excluding income from investments

² Disclosure on rental vehicles does not contain right of use assets for rental vehicles financed by lease contracts

³ Short-term borrowings with terms of up to three months and quick turnover

2.4 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Consolidated Statement of Changes in Equity	Subscribed capital	Capital reserves	Other reserves1	Equity attributable	Total equity
in EUR thousand				to shareholders of Sixt SE
1 Jan. 2023	120,175	204,771	1,654,463	1,979,408	1,979,408
Consolidated profit/loss	-	-	118,740	118,740	118,740
Dividend payments 2022	-	-	-287,155	-287,155	-287,155
Other comprehensive income	-	-	-6,012	-6,012	-6,012
30 Jun. 2023	120,175	204,771	1,480,036	1,804,981	1,804,981
1 Jan. 2022	120,175	200,538	1,425,473	1,746,186	1,746,186
Consolidated profit/loss	-	-	160,254	160,254	160,254
Dividend payments 2021	-	-	-174,022	-174,022	-174,022
Other comprehensive income	-	-	40,767	40,767	40,767
Increase due to the employee participation programme	-	206	-	206	206
30 Jun. 2022	120,175	200,744	1,452,472	1,773,391	1,773,391

¹ Including retained earnings

3. CONDENSED NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023

3.1 GENERAL DISCLOSURES

Fundamentals of the interim consolidated financial statements

The consolidated financial statements of Sixt SE as at 31 December 2022 were prepared in accordance with International Financial Reporting Standards (IFRS), as adopted by the EU and effective at the closing date.

The same accounting policies as in the 2022 consolidated financial statements are principally applied in the interim consolidated financial statements as at 30 June 2023, which were prepared on the basis of International Accounting Standard IAS 34 (Interim financial reporting). A detailed description of the accounting principles, consolidation, accounting and valuation methods used is published in the notes to the consolidated financial statements in the Annual Report 2022. New and/or amended standards and interpretations applied for the first time in the current financial year have no material impact on the interim consolidated financial statements of Sixt SE.

Preparation of interim consolidated financial statements requires management to make assumptions and estimates that affect the reported amounts of assets, liabilities and provisions, as well as of income and expenses. Sixt SE has updated its assumptions and estimates considering the expected economic development. Actual amounts may differ from these estimates. The results presented in the interim financial statements are not necessarily indicative of the results of future reporting periods or of the full financial year.

The interim consolidated financial statements were prepared and published in euros.

The accompanying interim consolidated financial statements as at 30 June 2023 have not been audited or reviewed by the Group's auditors, Deloitte GmbH Wirtschaftsprüfungsgesellschaft, Munich.

Standards and interpretations not yet mandatory for application

The following new and/or amended standards and interpretations have been ratified by the IASB but are not yet mandatory. The company has not applied these regulations prematurely.

Standard / Interpretation		Adoption by European Commission	Applicable as at
Amendments to IAS 1	Classification of liabilities as current or non-current, Non-current liabilities with covenants	No	1 Jan. 2024
Amendments to IAS 7 and IFRS 7	Supplier finance arrangements	No	1 Jan. 2024
Amendments to IAS 12	International Tax Reform - Pillar II Model Rules	No	1 Jan. 2023
Amendments to IFRS 16	Lease liability in a sale and leaseback	No	1 Jan. 2024

The amendments to IAS 12 published by the IASB introduce disclosure requirements that will apply immediately after adoption by the European Commission. The effects of the amendments to IAS 12 are currently being analysed.

3.2 SCOPE OF CONSOLIDATION

Sixt SE, domiciled in Zugspitzstrasse 1, 82049 Pullach, Germany, is entered in section B of the commercial register at the Munich Local Court, under docket number 206738.

Compared to the reporting date as at 31 December 2022 there have been no changes in the scope of consolidation apart from the liquidation of Sixt Limousine Switzerland AG, Basle, which has been completed in the first half of the financial year 2023.

3.3 EXPLANATIONS OF SELECTED ITEMS OF THE CONSOLIDATED STATEMENT OF INCOME

Revenue

Revenue is broken down as follows:

	Germany		Europe				Total	Change
H1 2023	H1 2022	H1 2023	H1 2022	H1 2023	H1 2022	H1 2023	H1 2022	in %
419.3	345.0	603.5	504.1	462.0	378.1	1,484.8	1,227.2	21.0
72.7	42.7	41.6	32.3	16.1	16.6	130.5	91.6	42.4
4.0	4.6	0.9	1.1	-	-	4.9	5.7	-14.1
496.1	392.3	646.0	537.6	478.1	394.7	1,620.2	1,324.6	22.3
								Change
								in %
230.8	191.4	375.2	307.3	244.4	200.3	850.4	699.0	21.7
43.3	17.2	21.6	16.3	7.3	8.3	72.2	41.8	72.9
2.0	2.4	0.4	0.6	-	-	2.5	3.0	-17.9
276.1	211.1	397.2	324.2	251.7	208.6	925.1	743.8	24.4
	Q2 2023	Germany Q2 2022	Q2 2023	Europe Q2 2022	Q2 2023	North America North America Q2 2022	Q2 2023	Total Q2 2022

Other operating income

Other operating income is broken down as follows:

Other operating income	H1	H1	Change
in EUR million	2023	2022	in %
Forwarding costs to third parties	32.1	21.0	52.8
Currency translation	44.2	59.7	-25.9
Capitalised costs	9.5	9.8	-3.4
Miscellaneous income	24.2	15.5	56.3
Group total	110.0	106.0	3.8

Fleet expenses

Fleet expenses are broken down as follows:

Fleet expenses	H1	H1	Change
in EUR million	2023	2022	in %
Repairs, maintenance and reconditioning	171.0	139.3	22.8
Fuel	35.1	21.4	64.3
Insurance	58.8	51.5	14.1
Transportation	37.5	19.5	93.0
Taxes and charges	13.1	10.2	28.1
Other	50.2	32.5	54.4
Group total	365.7	274.4	33.3

Personnel expenses

Personnel expenses increased due to the expansion of the workforce, especially in strategically important areas such as stations, service centres and digitalisation, as well as wage and salary increases in line with the market, from EUR 249.2 million the year before to EUR 317.5 million.

Depreciation and amortisation expense including impairments

Expenses for depreciation and amortisation including impairments are explained in more detail below:

Depreciation and amortisation expense including impairments	H1	H1	Change
in EUR million	2023	2022	in %
Rental vehicles1	251.7	183.9	36.9
Property and equipment and investment property1	81.8	64.7	26.4
Intangible assets	3.7	2.9	24.4
Group total	337.2	251.6	34.0

¹ Since end of 2022 depreciation of rental vehicles contains the depreciation of right of use assets for rental vehicles financed by lease contracts, that was reported under depreciation of property and equipment previously. The prior year comparative figures have been adjusted accordingly.

Other operating expenses

Other operating expenses are broken down as follows:

Other operating expenses	H1	H1	Change
in EUR million	2023	2022	in %
Leasing expenses	24.1	21.3	13.1
Commissions	150.3	130.9	14.9
Expenses for buildings	34.7	25.3	37.2
Other selling and marketing expenses	78.1	49.4	58.2
Expenses from write-downs/impairments of receivables	34.9	36.9	-5.5
Audit, legal, advisory costs, and investor relations expenses	17.3	14.7	17.4
Other personnel services	47.5	28.7	65.6
Expenses for IT and communication services	20.1	18.6	7.7
Currency translation/consolidation	49.5	60.9	-18.7
Miscellaneous expenses	48.5	29.6	63.5
Group total	504.9	416.4	21.3

Financial result

The following table contains a breakdown of the financial result:

Financial result	H1	H1	Change
in EUR million	2023	2022	in %
Other interest and similar income	0.9	0.4	112.9
Interest and similar expenses	-42.4	-16.2	161.7
Thereof from leases	-10.9	-3.5	210.5
Net interest expense	-41.4	-15.8	163.0
Income from financial assets	0.2	0.4	-52.9
Result from fair value measurement of financial assets	0.0	-0.5	-109.0
Net income from derivative financial instruments	1.5	-	-
Other financial result	1.8	-0.1	-3,219.2
Group total	-39.7	-15.8	151.0

Income tax expense

Income tax expense is composed of current income tax of EUR 31.5 million (H1 2022: EUR 35.2 million), as well as deferred taxes of EUR 14.9 million (H1 2022: EUR 27.8 million).

Earnings per share

Earnings per share - basic		H1 2023	H1 2022
Consolidated profit/loss for the period after minority interests	in EUR thousand	118,740	160,254
Profit attributable to ordinary shares	in EUR thousand	76,597	103,452
Profit attributable to preference shares	in EUR thousand	42,143	56,802
Weighted average number of ordinary shares		30,367,112	30,367,112
Weighted average number of preference shares		16,576,246	16,576,246
Earnings per ordinary share	in EUR	2.52	3.41
Earnings per preference share	in EUR	2.54	3.43

The profit/loss attributable to preference shares includes the additional dividend of EUR 0.02 per preference share payable in accordance with the Articles of Association for preference shares carrying dividend rights in the financial year. The weighted average number of shares is calculated based on the proportionate number of shares per month for each category of shares, taking due account of the respective number of treasury shares. The Matching Stock Programme MSP 2012 was terminated at the end of financial year 2022. The potential dilutive effect of stock options issued as part of the Matching Stock Programme MSP 2012 is insignificant in the first half of year 2022, so that no adjustment was made. There were no circumstances in the financial year 2023 that would lead to a dilution of earnings per share. Diluted earnings per share therefore correspond for both categories of shares in terms of the amount to basic earnings per share.

Dividend

The proposal to pay out a dividend of EUR 4.11 per ordinary share and EUR 4.13 per preference share and a special dividend of EUR 2.00 per ordinary and preference share was resolved unchanged by the Annual General Meeting on 23 May 2023. This corresponds to a total distribution to shareholders of EUR 287,155 thousand. The payment was made on 26 May 2023.

3.4 EXPLANATIONS OF SELECTED ITEMS OF THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Property and equipment

The item property and equipment in the amount of EUR 797.1 million (31 December 2022: EUR 633.3 million) includes own property and equipment in the amount of EUR 225.4 million (31 December 2022: EUR 216.2 million) as well as right of use assets in the amount of EUR 571.6 million (31 December 2022: EUR 417.1 million).

Rental vehicles

Sixt has continued to expand its fleet in line with its plan in order to meet the current demand and to be prepared for the upcoming third quarter. The rental vehicles items increased by EUR 782.8 million to EUR 4.62 billion (31 December 2022: EUR 3.83 billion). In addition to own rental vehicles, leased rental vehicles are also included in the amount of 80.6 EUR million (31 December 2022: 145.8 EUR million).

Other receivables and assets

Other receivables and assets can be broken down as follows:

Other receivables and assets
in EUR million	30 Jun. 2023	31 Dec. 2022
Financial other receivables and assets
Receivables from affiliated companies and
from other investees	0.1	0.1
Deposits	0.1	0.0
Miscellaneous assets	163.6	163.8
Non-financial other receivables and assets
Other recoverable taxes	106.5	96.3
Insurance claims	18.3	18.1
Deferred expense	28.1	25.4
Delivery claims for vehicles of the rental fleet	51.7	53.7
Group total	368.4	357.5
Thereof current	357.3	349.5
Thereof non-current	11.1	8.0

Equity

The share capital of Sixt SE as at 30 June 2023 amounts unchanged to EUR 120,174,996 (31 December 2022: EUR 120,174,996).

The share capital is composed of:

Composition of the share capital	No-par value	Nominal value	No-par value	Nominal value
	shares	in EUR	shares	in EUR
		30 Jun. 2023		31 Dec. 2022
Ordinary shares	30,367,112	77,739,807	30,367,112	77,739,807
Non-voting preference shares	16,576,246	42,435,190	16,576,246	42,435,190
Total	46,943,358	120,174,996	46,943,358	120,174,996

Treasury shares

By resolution of the Annual General Meeting of 24 June 2020 the Managing Board, with consent of the Supervisory Board, is authorised, as specified in the proposed resolution, to acquire in the period up to and including 23 June 2025 treasury shares in the amount of up to 10% of the company's share capital at the time of the authorisation or, if lower, at the time of the exercise – including with the use of derivatives in the amount of up to 5% of the share capital. The authorisation may be exercised wholly or partially, on one or more occasions for any purpose permitted by law. Acquisitions for the purpose of trading in treasury shares are excluded. As at reporting date the authorisation has not yet been fully exercised. As in the previous year, Sixt SE did not hold any treasury shares as at 30 June 2023.

Authorised capital

By resolution of the Annual General Meeting of 24 June 2020 the Managing Board, with the consent of the Supervisory Board, was authorised, as specified in the proposed resolution, to increase the share capital on one or more occasions in the period up to and including 23 June 2025 by up to a maximum of EUR 32,640,000 by issuing new no-par value bearer shares against cash and/or noncash contributions, whereby the shareholders' pre-emptive rights may be excluded under certain conditions (Authorised Capital 2020). As at 30 June 2023 the authorisation has not been exercised.

Conditional capital

By resolution of the Annual General Meeting of 24 June 2020 the Managing Board, with the consent of the Supervisory Board, was authorised, as specified in the proposed resolution, to issue on one or more occasions in the period up to and including 23 June 2025 convertible and/or bonds with warrants registered in the name of the holder and/or bearer of up to a maximum of EUR 350,000,000 with a fixed or open-ended term and to grant conversion or option rights to the holder and/or creditor of convertible bonds to acquire a total of up to 6,000,000 new no-par value bearer shares in Sixt SE and/or to provide corresponding conversion rights for the company.

In this context the company's share capital has been conditionally increased strength of the resolution taken by the Annual General Meeting on 24 June 2020 by up to EUR 15,360,000 (Conditional Capital 2020). The conditional capital increase serves to grant shares to the holders or creditors of convertible bonds and holders of option rights from bonds with warrants, insofar as the conversion or option rights from the aforementioned bonds are actually exercised or the conversion obligations from such bonds are fulfilled and provided that no other form of settlement is being used. As at 30 June 2023 the authorisation has not been exercised.

Profit participation bonds and rights

By resolution of the Annual General Meeting of 16 June 2021 the Managing Board, with the consent of the Supervisory Board, is authorised, to issue on one or more occasions in the period up to and including 15 June 2026 profit participation bonds and/or rights registered in the name of the holder and/or bearer by up to a maximum of EUR 350,000,000 with a fixed or open-ended term against cash and/or non-cash contributions. The profit participation bonds and/or rights issued under this authorisation may not provide for conversion or subscription rights to shares of the company. As at 30 June 2023 the authorisation has not been exercised.

Financial liabilities

Financial liabilities are broken down as follows:

Financial liabilities	Residual term of up to 1 year Residual term of 1 to 5 years				Residual term of more than 5 years
in EUR million	30 Jun. 2023	31 Dec. 2022	30 Jun. 2023	31 Dec. 2022	30 Jun. 2023	31 Dec. 2022
Bonds	249.6	-	597.3	548.8	-	-
Borrower's note loans	120.0	120.0	998.4	603.9	99.8	45.0
Commercial papers	70.0	112.0	-	-	-	-
Liabilities to banks	499.2	471.2	58.3	59.8	-	-
Lease liabilities	168.3	167.5	294.1	259.9	178.2	109.5
Other liabilities	21.4	7.6	-	-	-	-
Group total	1,128.5	878.2	1,948.1	1,472.5	278.0	154.5

Borrower's note loans were issued in several tranches, with nominal terms between three and seven years. At the end of February 2023 Sixt SE issued borrower's note loans with terms of three, five and seven years in a total amount of EUR 450 million.

The bonds relate to the 2018/2024 bond placed in 2018 and the 2020/2024 bond placed in 2020, each issued by Sixt SE. The 2018/2024 bond with a nominal value of EUR 250 million, which was reported in the previous year under non-current bonds, is due for repayment in the first half of 2024. In June 2023, Sixt SE issued a new bond with a nominal value of EUR 300 million. The bond has a term of four years and four months and an interest rate of 5.125% p.a.

The liabilities to banks include two long-term investment loans which have been secured by mortgages and short-term borrowings taken out by utilising the credit lines available to the Group.

Lease liabilities comprise liabilities resulting from leases recognised in accordance with IFRS 16.

Other liabilities consist mainly of deferred interest.

Other provisions

As was the case at year-end 2022, other provisions primarily comprise provisions for taxes, legal costs and the operating rental business (fleet related costs) as well as employee-related provisions.

Other liabilities

Other liabilities can be broken down as follows:

Other liabilities
in EUR million	30 Jun. 2023	31 Dec. 2022
Financial other liabilities
Liabilities to affiliated companies and other investees	0.4	0.5
Payroll liabilities	10.9	8.6
Miscellaneous liabilities	50.0	31.5
Non-financial other liabilities
Deferred income	1.4	1.2
Tax liabilities	34.5	32.2
Contract liabilities	106.3	49.6
Group total	203.6	123.6
Thereof current	202.2	120.4
Thereof non-current	1.4	3.2

Contract liabilities mainly relate to prepayments received from customers for the future rental of vehicles.

Additional disclosures on financial instruments

The following table shows the carrying amounts and fair values of the individual financial assets and liabilities for each single category of financial instruments. The fair value of financial assets and liabilities that are not regularly measured at fair value, but for which the fair value is to be specified, are assigned in the following table to the measurement levels of the fair value according to IFRS 13.

Financial instruments	IFRS 9 measurement	Measurement basis for fair value	Carrying amount		Fair value
in EUR thousand	category1		30 Jun. 2023	31 Dec. 2022	30 Jun. 2023	31 Dec. 2022
Non-current assets
Financial assets	FVTPL	Level 3	1,217	1,176	1,217	1,176
Financial assets	FVTOCI	Level 1	170	218	170	218
Interest derivatives	Hedge Accounting	Level 2	2,468	-	2,468	-
Other receivables	AC		8,605	7,968
Total			12,460	9,361	3,855	1,393
Current assets
Currency derivatives	FVTPL	Level 2	-	15,819	-	15,819
Trade receivables	AC		476,550	535,852
Deposits	AC		56	23
Other receivables	AC		152,650	140,159
Total			629,255	691,852	-	15,819
Non-current liabilities
Bonds	AC	Level 1	597,293	548,808	598,083	532,944
Borrower's note loans	AC	Level 2	1,098,178	648,903	1,087,598	631,479
Liabilities to banks	AC	Level 2	58,293	59,817	53,269	53,002
Lease liabilities	IFRS 16		472,321	369,409
Total return swaps	Hedge Accounting	Level 2	1,417	3,177	1,417	3,177
Total			2,227,501	1,630,115	1,740,367	1,220,602
Current liabilities
Bonds	AC	Level 1	249,622	-	246,015	-
Borrower's note loans	AC	Level 2	119,992	119,968	120,960	119,108
Commercial papers	AC	Level 2	70,000	112,000	69,816	111,821
Liabilities to banks	AC	Level 2	499,216	471,155	502,543	471,857
Lease liabilities	IFRS 16		168,316	167,514
Other financial liabilities	AC		21,381	7,557
Trade payables	AC		856,597	636,938
Currency derivatives	FVTPL	Level 2	4,331	15	4,331	15
Total return swaps	Hedge Accounting	Level 2	269	550	269	550
Financial other liabilities	AC		55,329	36,857
Total			2,045,053	1,552,554	943,934	703,351

¹ FVTPL - Fair value through profit or loss, FVTOCI - Fair Value through OCI, AC - At amortised cost

The financial instruments in above table are classified into three levels depending on the measurement basis. Level 1 measurements are based on prices quoted in active markets. Level 2 measurements are based on parameters other than quoted prices that are observable either directly as prices or are indirectly derived from prices. Level 3 measurements are based on models that use parameters that are not based on observable market data, but rather on assumptions. There have been no transfers between the individual measurement levels at the reporting date.

Due to factors that change in the course of time, the reported fair values can only be regarded as indicative of the values actually realisable on the market. The fair values of the financial instruments were calculated on the basis of market data available at the balance sheet date and the methods and assumptions described below.

For current financial instruments it was assumed that the fair values correspond to the carrying amounts (amortised cost) unless specified otherwise in the table.

The fair values of borrower's note loans and liabilities to banks reported as non-current and current liabilities were calculated as the present value of the future expected cash flows. Standard market rates of interest between 3.5% p.a. and 3.7% p.a. for financial instruments that will be settled in Euro (2022: between 3.8% p.a. and 4.4% p.a.) based on respective maturities were used for discounting. The fair values of the bonds reported as non-current and current liabilities are based on the quoted market prices.

Lease liabilities are measured in accordance with IFRS 16.

The fair values for financial assets determined on the basis of unobservable market data relate to equity instruments which are valued on the basis of their net assets value. The change in the reported carrying amounts and fair values has resulted from results recognised in profit or loss in the amount of EUR 41 thousand (31 December 2022: EUR -338 thousand).

Segment Report		Germany		Europe		North America		Other		Reconciliation		Group
in EUR million	2023	2022	2023	2022	2023	2022	2023	2022	2023	2022	2023	2022
External revenue	492.1	387.7	645.1	536.4	478.1	394.7	4.9	5.7	-	-	1,620.2	1,324.6
Internal revenue	44.9	31.2	6.7	5.3	8.2	6.1	18.8	14.3	-78.5	-56.9	-	-
Total revenue	536.9	418.9	651.8	541.8	486.3	400.8	23.7	20.1	-78.5	-56.9	1,620.2	1,324.6
Leasing expenses for rental vehicles	14.8	16.7	7.4	4.7	1.9	-	-	-	-	-0.0	24.1	21.3
Depreciation of rental vehicles1	104.2	53.9	109.3	82.2	38.3	47.8	-	-	-	-	251.7	183.9
Interest income	21.3	14.8	4.2	3.7	0.1	0.2	-	-	-24.8	-18.3	0.9	0.4
Interest expense	-35.3	-16.3	-13.7	-8.5	-16.2	-8.6	-	-	24.7	18.4	-40.4	-15.1
Corporate EBITDA	34.9	60.1	113.9	132.2	100.5	99.1	1.4	0.7	-	-	250.7	292.0
Other depreciation and amortisation							3.0	2.3	-	-	85.5	67.7
Reclassification net interest expense							-	-	-	-	39.6	14.7
EBIT2							-1.6	-1.6	-	-	204.8	239.0
Financial result							-1.9	-1.1	-	-	-39.7	-15.8
EBT3							-3.4	-2.7	-	-	165.1	223.2
Investments4	22.2	21.7	49.9	24.0	187.3	11.0	1.3	17.0	-	-21.7	260.7	52.1
Assets	4,076.7	3,364.8	2,563.0	2,282.3	2,108.7	1,475.7	1,265.5	1,064.6	-3,543.9	-3,391.6	6,470.1	4,795.8
Segment liabilities	3,423.5	2,582.6	1,501.1	1,328.3	1,301.1	961.6	156.6	139.2	-1,792.5	-2,015.3	4,589.8	2,996.3

3.5 SEGMENT REPORTING

¹ Since end of 2022 depreciation of rental vehicles contains the depreciation of right of use assets for rental vehicles financed by lease contracts, that was reported under depreciation of property and equipment previously. The prior year comparative figures have been adjusted accordingly.

² Corresponds to earnings before interest and taxes (EBIT)

³ Corresponds to earnings before taxes (EBT)

⁴ Investments in non-current assets including right of use assets, excluding rental vehicles

3.6 CONTINGENT LIABILITIES

There were no material changes in contingent liabilities resulting from guarantees or similar obligations as against the 2022 consolidated financial statements.

3.7 RELATED PARTY DISCLOSURE

There have been no material changes in the nature and amount of Sixt Group's transactions with related parties as of 30 June 2023 compared to those reported as of 31 December 2022. For further details please refer to the consolidated financial statements of Sixt SE as of 31 December 2022 in the Annual Report 2022 (Notes to the consolidated financial statements "5.4 Related party disclosure".)

3.8 EVENTS SUBSEQUENT TO REPORTING DATE

No events of special significance for the net assets, financial position and results of operations of the Sixt Group occurred after the reporting date as of 30 June 2023.

4. RESPONSIBILITY STATEMENT

To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the interim consolidated financial statements give a true and fair view of the net assets, financial position and results of operations of the Group, and the interim management report of the Group includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group for the remaining months of the financial year.

Pullach, 8 August 2023

Sixt SE The Management Board

Sixt SE Sixt SE Zugspitzstraße 1 Zugspitzstraße 1

Contact Published by 82049 Pullach, Germany 82049 Pullach, Germany

investorrelations@sixt.com Phone +49 (0) 89/ 7 44 44 - 5104 Fax +49 (0) 89/ 7 44 44 - 85104

Investor Relations website ir.sixt.eu Further sites sixt.com about.sixt.com/en/

Note: This announcement is available for download in German and in English translation on the internet at Investor Relations (ir.sixt.eu). In the event of any discrepancies, the German version of the report shall take precedence over the English translation.