Sixt SE

Interim / Quarterly Report • Nov 11, 2021

Group Quarterly Statement as at 30 September 2021

1. BUSINESS REPORT

1.1 GENERAL DEVELOPMENTS IN THE GROUP

After the business development of the Sixt Group was still strongly affected by the effects of the worldwide COVID-19 pandemic, especially in the first quarter of the current year, Sixt recorded a significant increase in demand in the course of the second and third quarter. The recovery was initially driven by the United States, but shortly afterwards also started in Europe, with high demand particularly in European tourist regions such as France, Spain and Italy.

Increasing travel activities, especially in Europe and the United States, as well as the continued good market price level due to the shortage of available vehicles, led to a very strong operating result in the third quarter, which is the quarter with the highest seasonal demand due to the summer and holiday months anyway. The strategic investments in internationalisation and digitisation are increasingly paying off, and Sixt's already strong market position in important car rental markets was thus further strengthened in the reporting period. In August 2021, for example, Sixt achieved the highest market share among car rental companies at Miami Airport for the first time.

In the first nine months of the financial year, Sixt achieved consolidated revenue of EUR 1.63 billion. This corresponds to a significant increase of 38.2% compared to the same period of the previous year (9M 2020: EUR 1.18 billion). At EUR 1.62 billion, consolidated operating revenue for the first three quarters was 38.4% higher than the prior-year figure of EUR 1.17 billion. While operating revenue generated in the segment Germany of the Mobility Business Unit increased only slightly by 1.8% to EUR 525.8 million in the first nine months of 2021 (9M 2020: EUR 516.5 million), operating revenue attributable to the segment Europe (excluding Germany) of EUR 681.8 million was considerably higher than the previous year's figure (9M 2020: EUR 450.9 million; +51.2%). Operating revenue generated in the segment North America climbed by 102.9% to EUR 413.1 million (9M 2020: EUR 203.6 million).

In the third quarter of the current financial year, Sixt recorded consolidated revenue of EUR 799.0 million, a year-on-year increase of 72.7% (Q3 2020: EUR 462.6 million). At EUR 795.2 million, consolidated operating revenue was 73.0% higher than last year (Q3 2020: EUR 459.7 million). Operating revenue generated in the segment Germany of the Mobility Business Unit rose by 24.1% to EUR 233.1 million in the third quarter of 2021 (Q3 2020: EUR 187.8 million). At EUR 386.7 million (Q3 2020: EUR 212.1 million), operating revenue generated in the segment Europe (excluding Germany) was 82.3% higher than in the previous year. Operating revenue generated in the segment North America amounted to EUR 175.5 million (Q3 2020: EUR 59.8 million), corresponding to an increase of 193.3%.

Revenue key figures Sixt Group			Change			Change
in EUR million	9M 2021	9M 2020	in %	Q3 2021	Q3 2020	in %
Consolidated revenue	1,630.1	1,179.6	38.2	799.0	462.6	72.7
Operating revenue	1,620.7	1,170.9	38.4	795.2	459.7	73.0
Thereof segment Germany	525.8	516.5	1.8	233.1	187.8	24.1
Thereof segment Europe	681.8	450.9	51.2	386.7	212.1	82.3
Thereof segment North America	413.1	203.6	102.9	175.5	59.8	193.3

Consolidated earnings before taxes (EBT) amounted to EUR 317.4 million in the financial year from January to September, compared to EUR -56.9 million in the same period of the previous year. In the third quarter, Sixt achieved EBT of EUR 253.2 million compared to EUR 66.0 million in the third quarter of the previous year (+283.8%).

EBT for the Mobility Business Unit came to EUR 319.6 million in the first nine months of 2021 (9M 2020: EUR -56.4 million) and EUR 255.3 million in the third quarter of 2021 (Q3 2020: EUR 66.2 million).

The Group's operating return on revenue thus amounts to 19.6% in the nine-month period of 2021 (9M 2020: -4.9%) and 31.8% in the third quarter of 2021 (Q3 2020: 14.4%). The operating return on revenue of the Mobility Business Unit is 19.7% for the period January to September of 2021 (9M 2020: -4.8%) and 32.1% for the third quarter of 2021 (Q3 2020: 14.4%).

Operating return on revenue
in %	9M 2021	9M 2020	Q3 2021	Q3 2020
Group	19.6	-4.9	31.8	14.4
Mobility Business Unit	19.7	-4.8	32.1	14.4

Corporate EBITDA, defined as EBITDA, but including depreciation on rental vehicles and interest result of the Mobility Business Unit, reached EUR 414.8 million at Group level in the first nine months of 2021 (9M 2020: EUR 49.3 million) and EUR 412.0 million in the Mobility Business Unit (9M 2020: EUR 43.7 million). The highest contribution in the reporting period came from the segment Europe, followed by North America and Germany.

In the third quarter of 2021, Corporate EBITDA came to EUR 287.9 million at Group level (Q3 2020: EUR 98.7 million) and to EUR 288.3 million (Q3 2020: EUR 97.2 million) in the Mobility Business Unit. The segment Europe accounted for the highest share, followed by the segments Germany and North America.

Earnings key figures Mobility Business Unit			Change			Change
in EUR million	9M 2021	9M 2020	in %	Q3 2021	Q3 2020	in %
Corporate EBITDA	412.0	43.7	842.6	288.3	97.2	196.4
Thereof segment Germany	91.2	37.5	142.8	74.2	15.2	389.5
Thereof segment Europe	190.0	52.4	262.3	151.8	77.3	96.5
Thereof segment North America	130.9	-46.3	-382.8	62.3	4.8	1,196.1
EBT	319.6	-56.4	-666.6	255.3	66.2	285.8

In the first nine months of the reporting year, consolidated profit amounted to EUR 250.1 million (9M 2020: EUR -80.8 million from continuing operations), of which the third quarter accounted for EUR 197.4 million (Q3 2020: EUR 33.8 million).

Despite the current shortage of vehicles, the average fleet in Germany and abroad (excluding franchisees) in the first nine months of 2021 comprised around 120,700 vehicles, 2.3% higher than in the same period last year (approx. 117,900 vehicles). Germany accounted for the highest share of the Group-wide rental fleet, followed by the United States.

As at 30 September 2021, Sixt had an extensive network of 444 stations in Germany (9M 2020: 491 stations). In the United States, Sixt was represented at almost all major transport hubs in the country at the end of September 2021 and had 94 stations (9M 2020: 100 stations). The number of stations in the Sixt European corporate countries (excluding Germany) was 450 (9M 2020: 433 stations). In addition, there were a further 1,067 stations in Sixt franchise countries (9M 2020: 1,111 stations), bringing the total number of stations to 2,055 at the end of September 2021 (9M 2020: 2,135 stations).

1.2 KEY DEVELOPMENTS AND MEASURES DURING THE REPORTING PERIOD

\ Strategic cooperation with Intel for joint robot taxi service: At the IAA Mobility in September 2021, Mobileye, a subsidiary of the Intel Group, and Sixt have announced that they will jointly offer an autonomous ride hailing service in Munich from next year on. Mobileye will own the fleet, while Sixt will provide, maintain and operate the fleet. The self-driving cars can also be requested via

the SIXT app in the future. This strategic cooperation is the next step in the expansion of the mobility platform ONE and underlines Sixt's development to a leading provider of innovative and digital premium mobility.

• \ Expansion of the range of sustainable mobility: With the integration of sustainable hybrid and fully electric vehicle models, SIXT ride now offers a carbon-saving option for journeys from A to B in many cities and regions. In addition to Berlin and Munich, the corresponding models are available in numerous other European cities. Already today, around one third of the SIXT share fleet consists of electric vehicles, and the integration of e-scooters and e-mopeds offers further options for low-carbon travel. By offering sustainable driving services with SIXT ride, Sixt now provides its customers an additional option for sustainable and comfortable individual mobility.
• \ Digitisation strategy also in the financial organisation: At the end of the third quarter of 2021, Sixt SE placed two borrower's note loans with a tenor of five years and a total volume of EUR 100 million. Settlement date was in early October. For the first time, Sixt used blockchain-based technology for an issuance of this kind and is thus also focusing on digital innovation in the financial area.

1.3 FINANCIAL POSITION

Assets

As at the reporting date, 30 September 2021, the Group's total assets amounted to EUR 4.76 billion, EUR 0.33 billion higher than the figure as at 31 December 2020 (EUR 4.43 billion). The increase was largely driven by the rental assets item, which continued to grow due to the further expansion of the fleet and thus came to EUR 3.19 billion (31 December 2020: EUR 2.20 billion). The Group's cash and bank balances declined correspondingly and amounted to EUR 94.3 million (31 December 2020: EUR 753.3 million).

Equity

At EUR 1.66 billion, the Sixt Group's equity at the reporting date was EUR 269.8 million above the level of the 2020 year-end figure (EUR 1.39 billion). The equity ratio rose to 35.0% (31 December 2020: 31.5%) and remains well above the defined minimum target of 20% and at a level well above the average in the vehicle rental industry.

Liabilities

Non-current liabilities and provisions decreased slightly to EUR 1.90 billion as at 30 September 2021 (31 December 2020: EUR 1.94 billion). The decline was mainly due to lower non-current financial liabilities.

Current liabilities and provisions totalled EUR 1.19 billion as at 30 September 2021, and thus slightly higher than the figure at the end of 2020 (EUR 1.10 billion). The main reason for the increase were the higher current other provisions, income tax liabilities and other liabilities, while lower trade payables had a compensating effect.

1.4 INVESTMENTS

From January to September 2021 Sixt added around 146,300 vehicles (9M 2020: approx. 135,300 vehicles) with a total value of EUR 4.44 billion (9M 2020: EUR 4.17 billion) to its rental fleet. This corresponds to an increase of 8.1% in the number of vehicles and 6.5% in the investment volume.

2. REPORT ON OUTLOOK

On 20 October 2021, the Managing Board of Sixt SE decided to raise the forecast for the financial year 2021 based on the preliminary results for the third quarter, the booking volume in October and a correspondingly updated forecast for the months until the end of the year. For the financial year 2021, the Managing Board of Sixt SE now expects consolidated operating revenue of between EUR 2.10 billion and EUR 2.30 billion and earnings before taxes (EBT) for the Sixt Group of between EUR 390 million and EUR 450 million.

Due to the volatile market environment, it is currently difficult to predict how demand will develop in the future. In addition, there is still great uncertainty regarding the extent and duration of the supply bottlenecks at vehicle manufacturers caused by the semiconductor shortage and the resulting impact on vehicle availability as well as market price developments in the industry for the months to come.

3. FINANCIAL INFORMATION OF THE SIXT GROUP AS AT 30 SEPTEMBER 2021

3.1 CONSOLIDATED INCOME STATEMENT AND STATEMENT OF COMPREHENSIVE INCOME

Consolidated Income Statement	9M	9M	Q3	Q3
in EUR thou.	2021	2020	2021	2020
Revenue	1,630,065	1,179,553	799,030	462,550
Other operating income	100,722	150,505	37,616	56,263
Fleet expenses	365,090	336,534	154,231	115,696
Personnel expenses	289,909	260,367	117,098	77,456
Depreciation and amortisation expense including impairments	271,902	339,697	96,046	100,828
Other operating expenses	459,960	422,705	206,445	149,969
Earnings before interest and taxes (EBIT)	343,925	-29,246	262,826	74,864
Financial result	-26,498	-27,662	-9,597	-8,892
Earnings before taxes (EBT)	317,428	-56,907	253,229	65,973
Income tax expense	67,332	23,857	55,819	32,125
Result from continuing operations	250,096	-80,764	197,410	33,847
Result from discontinued operations, net of taxes	-	100,806	-	41,524
Consolidated profit/loss	250,096	20,042	197,410	75,371
Of which attributable to minority interests	2	35,212	1	1
Of which attributable to shareholders of Sixt SE	250,094	-15,170	197,409	75,370

Consolidated statement of comprehensive income	9M	9M
in EUR thou.	2021	2020
Consolidated profit/loss	250,096	20,042
Other comprehensive income (not recognised in the income statement)	19,871	-19,218
Components that could be recognised in the income statement in future
Currency translation gains/losses	26,861	-18,916
Changes in the fair value of derivative financial instruments in hedge relationship	277	-373
Related deferred taxes	-69	71
Components that could not be recognised in the income statement in future
Remeasurement of defined benefit plans	70	-
Related deferred taxes	-20	-
Remeasurement of equity investments	-7,341	-
Related deferred taxes	91	-
Total comprehensive income	269,967	824
Of which attributable to minority interests	2	35,049
Of which attributable to shareholders of Sixt SE	269,964	-34,225
From continuing operations	269,964	-99,128
From discontinued operations	-	64,903

3.2 CONSOLIDATED BALANCE SHEET

Assets
in EUR thou.	30 Sep. 2021	31 Dec. 2020
Non-current assets
Goodwill	18,442	18,442
Intangible assets	25,111	20,080
Property and equipment	509,372	543,957
Investment property	6,810	-
Financial assets	2,626	9,934
Other receivables and assets	5,019	4,716
Deferred tax assets	54,836	43,612
Total non-current assets	622,216	640,740
Current assets
Rental vehicles	3,192,273	2,204,570
Inventories	47,535	81,330
Trade receivables	554,736	530,043
Other receivables and assets	233,208	198,368
Income tax receivables	14,847	20,113
Cash and bank balances	94,272	753,322
Total current assets	4,136,872	3,787,746
Total assets	4,759,088	4,428,486

Equity and liabilities
in EUR thou.	30 Sep. 2021	31 Dec. 2020
Equity
Subscribed capital	120,175	120,175
Capital reserves	197,898	197,280
Other reserves	1,346,389	1,077,253
Total equity	1,664,462	1,394,709
Non-current liabilities and provisions
Provisions for pensions and other post-employment benefits	3,538	3,141
Other provisions	782	515
Financial liabilities	1,887,208	1,928,579
Other liabilities	750	-
Deferred tax liabilities	8,415	5,078
Total non-current liabilities and provisions	1,900,693	1,937,313
Current liabilities and provisions
Other provisions	126,606	94,300
Income tax liabilities	57,433	22,555
Financial liabilities	444,362	449,612
Trade payables	410,060	422,813
Other liabilities	155,471	107,184
Total current liabilities and provisions	1,193,933	1,096,464
Total equity and liabilities	4,759,088	4,428,486

3.3 CONSOLIDATED CASH FLOW STATEMENT

Consolidated cash flow statement	9M	9M
in EUR thou.	2021	2020
Operating activities
Consolidated profit/loss	250,096	20,042
Result from discontinued operations, net of taxes	-	-60,643
Income from disposal of discontinued operations, net of taxes	-	-40,163
Income taxes recognised in income statement	73,678	28,843
Income taxes paid	-33,533	-15,738
Financial result recognised in income statement1	26,530	26,749
Interest received	708	1,493
Interest paid	-20,451	-28,684
Depreciation and amortisation including impairments	271,902	339,697
Income from disposal of fixed assets	721	-1,943
Other (non-)cash expenses and income	7,567	2,492
Gross cash flow	577,217	272,145
Depreciation and impairments on rental vehicles	-176,119	-235,889
Gross cash flow before changes in working capital	401,098	36,256
Change in rental vehicles	-987,703	594,697
Change in inventories	33,795	1,202
Change in trade receivables	-24,694	94,835
Change in trade payables	-12,753	-117,451
Change in other net assets	46,390	-167,069
Net cash flows used in/from operating activities of continuing operations	-543,867	442,471
Net cash flows from operating activities of discontinued operations	-	28,012
Net cash flows used in/from operating activities	-543,867	470,482
Investing activities
Proceeds from disposal of intangible assets, property and equipment	40	1,725
Proceeds from disposal of discontinued operations net of disposed cash and cash equivalents2	-	36,757
Payments for investments in intangible assets, property and equipment	-24,581	-18,112
Net cash flows used in/from investing activities of continuing operations	-24,540	20,370
Net cash flows used in investing activities of discontinued operations	-	-3,716
Net cash flows used in/from investing activities	-24,540	16,654
Financing activities
Payments made due to the purchase of treasury shares	-	-2,772
Dividends paid	-829	-829
Payments received from taken out borrower's note loans, bonds and bank loans	215,000	438,000
Payments made for redemption of borrower's note loans, bonds, bank loans and lease liabilities	-385,121	-692,631
Payments made for redemption of/payments received from taken out short-term financial liabilities3	75,929	15,350
Net cash flows used in financing activities of continuing operations	-95,021	-242,882
Net cash flows from financing activities of discontinued operations	-	99,183
Net cash flows used in financing activities	-95,021	-143,699
Net change in cash and cash equivalents	-663,429	343,438
Effect of exchange rate changes on cash and cash equivalents	4,379	-6,962
Cash and cash equivalents at 1 Jan.	753,322	170,519
Cash and cash equivalents at 30 Sep.	94,272	506,994

¹ Excluding income from investments

2 Includes in the previous year disposed cash and cash equivalents of the discontinued Leasing Business Unit in the amount of EUR 118.8 million

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

3.4 ADDITIONAL FINANCIAL INFORMATION

Revenue

Revenue		Germany		Europe		North America		Total	Change
in EUR million	9M 2021	9M 2020	9M 2021	9M 2020	9M 2021	9M 2020	9M 2021	9M 2020	in %
Mobility Business Unit
Rental revenue	467.2	449.4	636.5	415.4	393.0	189.7	1,496.7	1,054.5	41.9
Other revenue from rental business	58.6	67.1	45.3	35.5	20.1	13.9	123.9	116.5	6.4
Total	525.8	516.5	681.8	450.9	413.1	203.6	1,620.7	1,170.9	38.4
Other revenue	7.4	6.0	2.0	2.6	-	-	9.4	8.6	9.3
Group total	533.2	522.5	683.8	453.5	413.1	203.6	1,630.1	1,179.6	38.2

Revenue		Germany		Europe		North America		Total	Change
in EUR million	Q3 2021	Q3 2020	Q3 2021	Q3 2020	Q3 2021	Q3 2020	Q3 2021	Q3 2020	in %
Mobility Business Unit
Rental revenue	209.0	171.6	370.4	199.8	168.0	56.6	747.5	428.0	74.7
Other revenue from rental business	24.1	16.2	16.3	12.3	7.5	3.2	47.8	31.7	50.6
Total	233.1	187.8	386.7	212.1	175.5	59.8	795.2	459.7	73.0
Other revenue	3.1	2.0	0.7	0.9	-	-	3.8	2.9	31.9
Group total	236.2	189.8	387.4	212.9	175.5	59.8	799.0	462.6	72.7

Fleet expenses

Fleet expenses	9M	9M	Change
in EUR million	2021	2020	in %
Repairs, maintenance and reconditioning	168.3	154.5	9.0
Fuel	27.3	23.9	14.0
Insurance	71.4	64.8	10.3
Transportation	34.0	33.4	1.8
Taxes and charges	17.4	19.6	-11.5
Other	46.7	40.4	15.5
Group total	365.1	336.5	8.5

Depreciation and amortisation expense

Depreciation and amortisation expense including impairments	9M	9M	Change
in EUR million	2021	2020	in %
Rental vehicles	176.1	235.9	-25.3
Property and equipment	91.7	91.9	-0.2
Intangible assets	4.1	11.9	-65.6
Group total	271.9	339.7	-20.0

Other operating expenses

Other operating expenses	9M	9M	Change
in EUR million	2021	2020	in %
Leasing expenses	42.9	44.1	-2.7
Commissions	138.6	62.8	120.6
Expenses for buildings	27.7	31.2	-11.1
Other selling and marketing expenses	49.4	36.7	34.6
Expenses from write-downs/impairments of receivables	60.9	50.8	19.9
Audit, legal, advisory costs, and investor relations expenses	16.4	16.7	-1.7
Other personnel services	26.4	32.7	-19.1
Expenses for IT and communication services	13.0	12.1	7.2
Currency translation/consolidation	43.2	95.6	-54.9
Miscellaneous expenses	41.5	40.0	3.6
Group total	460.0	422.7	8.8

Financial result

Financial result	9M	9M	Change
in EUR million	2021	2020	in %
Other interest and similar income	0.7	1.2	-44.4
Interest and similar expenses	-27.2	-28.0	-2.7
Thereof from leases	-4.6	-5.5	-16.3
Net interest expense	-26.5	-26.7	-0.8
Result from fair value measurement of financial assets	0.0	-0.9	-103.6
Other financial result	0.0	-0.9	-103.6
Group total	-26.5	-27.7	-4.2

Group segment reporting

The segment information for the first nine months of 2021 (compared with the first nine months of 2020) is as follows:

By Business Unit1		Germany		Europe	North America		Reconciliation		Mobility			Other	Reconciliation		Group
in EUR million	2021	2020	2021	2020	2021	2020	2021	2020	2021	2020	2021	2020	2021	2020	2021	2020
External revenue	525.8	514.9	681.8	450.7	413.1	203.6	-	-		1,620.7 1,169.1	9.4	6.5	-	-	1,630.1	1,175.6
Internal revenue	30.7	22.3	5.3	6.4	4.2	2.6	-40.2	-29.5	-	1.8	13.8	14.6	-13.8	-12.5	-	4.0
Total revenue	556.5	537.2	687.1	457.0	417.2	206.2	-40.2	-29.5		1,620.7 1,170.9	23.2	21.1	-13.8	-12.5	1,630.1	1,179.6
Leasing expenses for rental vehicles	35.2	37.7	7.9	6.4	-	-	-0.2	-	42.9	44.1	-	-	-	-	42.9	44.1
Depreciation of rental vehicles	42.0	60.0	94.7	86.8	39.4	89.1	-	-	176.1	235.9	-	-	-	-	176.1	235.9
Interest income	20.3	26.4	3.5	4.0	0.3	0.7	-22.6	-29.1	1.6	2.0	-	-	-0.9	-0.8	0.7	1.2
Interest expense	-24.6	-23.1	-14.8	-13.1	-9.6	-20.0	22.6	29.0	-26.5	-27.2	-	-	0.9	0.8	-25.6	-26.4
Corporate EBITDA	91.2	37.5	190.0	52.4	130.9	-46.3	-	-	412.0	43.7	2.8	5.6	-	-	414.8	49.3
Other depreciation and amortisation									92.4	100.2	3.4	3.6	-	-	95.8	103.8
Recl. net interest expense									24.9	25.2	-	-	-	-	24.9	25.2
EBIT2									344.5	-31.2	-0.6	2.0	-	-	343.9	-29.2
Financial result									-24.9	-25.2	-1.6	-2.5	-	-	-26.5	-27.7
EBT3									319.6	-56.4	-2.2	-0.5	-	-	317.4	-56.9

¹ Presentation only includes continuing operations, the prior-year figures have been adjusted accordingly

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 presented 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, 11 November 2021

Sixt SE The Managing Board

Contact Published by Sixt SE Sixt SE Zugspitzstraße 1 Zugspitzstraße 1 82049 Pullach, Germany 82049 Pullach, Germany

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