Sixt SE

Quarterly Report • Nov 13, 2019

Group Quarterly Statement as at 30 September 2019

1. BUSINESS REPORT

1.1 GENERAL DEVELOPMENTS IN THE GROUP

The international mobility service provider recorded yet another solid revenue growth in the third quarter of 2019 and recognises double-digit growth rates for the first nine months. Consolidated operating revenue (excluding revenue from the sale of used leasing vehicles) totalled EUR 2.25 billion for the period January to September 2019 equalling an improvement of 13.7% over the same period the year before. In this Sixt was benefiting more and more from the ongoing digitisation of the business model. The growth drivers for the Mobility Business Unit were unchanged the strong foreign business operations, above all by the US-American subsidiary, as well as the customers' very positive response to the integrated mobility service of Sixt ONE with its products Sixt rent, Sixt share and Sixt ride.

The Sixt Group's total revenue (including the proceeds from the vehicle sales in the Leasing Business Unit) climbed to EUR 2.53 billion, 14.0% higher than the same figure the period from last year at EUR 2.22 billion.

Earnings before taxes (EBT), the Sixt Group's principal indicator for measuring business success, came to EUR 281.4 million in the nine months and thus a marginal 1.5% below last year's adjusted figure of EUR 285.5 million, which was adjusted by the one-time income from the sale of the stake in DriveNow. The result includes substantial investments made in many different expansion activities as well as the digitisation of products and processes. The operating return on revenue came to 12.5% after 14.5% for the same period last year.

For the third quarter of 2019, the Sixt Group recorded a 12.9% increase in consolidated operating revenue to EUR 891.2 million (Q3 2018: EUR 789.0 million). Total revenue rose 12.1% to EUR 980.2 million (Q3 2018: EUR 874.6 million). EBT for the period from July to September 2019 came to EUR 153.9 million and thus almost on the level of the same period the year before (Q3 2018: EUR 154.7 million; -0.5%). The operating return on revenue for the third quarter came to 17.3% (Q3 2018: 19.6%).

1.2 MOBILITY BUSINESS UNIT

Key figures for the Mobility Business Unit	9M	9M	Change
in EUR million	2019	20181	in %
Operating revenue	1,904.6	1,624.9	17.2
Thereof rental revenue	1,726.6	1,483.6	16.4
Thereof other revenue from rental business	178.1	141.3	26.1
Thereof abroad	1,177.8	951.2	23.8
Earnings before net finance costs and taxes (EBIT)	279.8	280.3	-0.2
Earnings before taxes (EBT)	260.0	262.8	-1.1
Operating return on revenue (EBT/operating revenue) in %	13.7	16.2	-2.5 points

¹ Prior-year figures were adjusted in line with changes in segment reporting.

\ As at 30 September 2019 the number of Sixt rental stations stood at 2,107 worldwide (corporate and franchise stations) against the 2,174 stations recorded at 31 December 2018. In Germany the number of stations expanded from 518 to 526.

^\ Very good customer response to the mobility platform ONE: The integrated mobility platform ONE that kicked off at the end of February 2019 with the new Sixt app continues to develop very well. Since February the app has been downloaded over 1 million times. Also the digitisation of all sales channels and operative business processes is being driven forward. This includes for example the technical optimisation of the website and the roll-out of a new rental software, which will make the bookings and rental processes swifter and more flexible for the customers.

\ The average number of vehicles in Germany and other countries (excluding franchisees) for the first nine months of 2019 rose to around 153,400, compared to an average of around 131,700 for the same period of 2018. This equals an increase of 16.4% that reflects the increase in business volume.

1.3 LEASING BUSINESS UNIT

Key figures for the Leasing Business Unit	9M	9M	Change
in EUR million	2019	2018	in %
Operating revenue	340.6	349.0	-2.4
Thereof leasing revenue	167.3	176.3	-5.1
Thereof other revenue from leasing business	173.3	172.6	0.4
Thereof abroad	41.0	41.5	-1.1
Sales revenue	283.0	242.1	16.9
Total revenue	623.6	591.1	5.5
Earnings before net finance costs and taxes (EBIT)	30.4	33.6	-9.7
Earnings before taxes (EBT)	21.4	23.4	-8.4
Operating return on revenue (EBT/operating revenue) in %	6.3	6.7	-0.4 points

\ New app for company car users started: Following a successful test phase Sixt Mobility Consulting GmbH in September 2019 launched the new app for company car users (The Companion) for their fleet customers. It offers company car drivers the possibility to use the ease and convenience of their smartphone to take care of such important vehicle-related tasks as scheduling inspection dates with partner dealers and workshops. The new service is another building block in the digitisation of Sixt Leasing's business model.

\ As of 30 September 2019 the Leasing Business Unit's total number of contracts in and outside Germany (excluding franchisees and cooperation partners) came to 127,200, and thus 2.0% below the figure at the end of 2018 (approx. 129,700 contracts). In October, Sixt Mobility Consulting GmbH announced the acquisition of Flottenmeister GmbH, which had more than 7,000 contracts under management, that are going to be transferred to the contract portfolio of the Leasing Business Unit in the fourth quarter 2019.

1.4 FINANCIAL POSITION

Equity

After the distribution of the annual dividends of Sixt SE and Sixt Leasing SE of EUR 107.0 million equity of the Sixt Group amounted to EUR 1.56 billion at the reporting date and thus EUR 116.8 million above the level at the end of 2018 (EUR 1.44 billion). Given the growth and seasonal driven expansion of total assets, the equity ratio decreased to 23.4% (31 December 2018: 27.8%). Nonetheless, it remains above the specified minimum level of 20% and on a level far above the average in the rental and leasing industry.

Liabilities

Non-current liabilities and provisions rose as per reporting date by EUR 262.4 million to EUR 2.59 billion (31 December 2018: EUR 2.33 billion), mainly due to higher non-current financial liabilities. The increase includes lease liabilities following the first-time adoption of IFRS 16 and the borrower's note loans newly issued by Sixt SE in the first half of 2019, while the reclassification of the bond 2014/2020 issued by Sixt SE (nominal value EUR 250 million) into current financial liabilities decreased non-current financial liabilities.

Current liabilities and provisions as at 30 September 2019 totalled EUR 2.51 billion, and thus EUR 1.09 billion above the figure at the end of 2018 (EUR 1.42 billion).This is the result of higher financial liabilities, which grew by EUR 1.03 billion to EUR 1.48 billion (31 December 2018: EUR 448.8 million) as well as the reporting date related increased trade payables, which rose by EUR 51.3 million to EUR 695.7 million (31 December 2018: EUR 644.4 million).

1.5 INVESTMENTS

In the first nine months of 2019 Sixt added around 211,100 vehicles to the rental and leasing fleets (9M 2018: approx. 200,300 vehicles) with a total value of EUR 6.06 billion (9M 2018: EUR 5.47 billion). This corresponds to an increase of around 5.4% in the number of vehicles and 10.7% in the volume of investments.

2. REPORT ON OUTLOOK

Following the gratifying performance of the first nine months Sixt is confirming its previous forecast for fiscal year 2019. Provided that the general economic climate does not worsen substantially, the Managing Board expects to see consolidated operating revenue climb substantially compared with last year and expects a stable Group EBT (discounting the sale of the stake in DriveNow from last year).

3. REPORT ON RISKS AND OPPORTUNITIES

The risk and opportunity profile of the Sixt Group in the first nine months of 2019 has not changed significantly as against the information provided in the Group Management Report in the Annual Report 2018. The Annual Report 2018 contains extensive details of the risks the Company faces, its risk management system, and its internal control and risk management system relating to its accounting procedures.

4. FINANCIAL INFORMATION OF THE SIXT GROUP AS AT 30 SEPTEMBER 2019

4.1 CONSOLIDATED INCOME STATEMENT AND STATEMENT OF COMPREHENSIVE INCOME

Consolidated Income Statement	9M	9M	Q3	Q3
in EUR thou.	2019	2018	2019	2018
Revenue	2,531,563	2,219,803	980,180	874,585
Other operating income	140,825	142,876	56,988	36,870
Fleet expenses and cost of lease assets	872,275	744,785	313,919	269,056
Personnel expenses	374,256	305,934	130,576	109,963
Depreciation and amortisation expense	524,752	405,325	197,630	146,189
Other operating expenses	589,166	592,880	229,842	222,646
Earnings before interest and taxes (EBIT)	311,939	313,755	165,202	163,602
Net finance costs	-30,560	167,870	-11,275	-8,881
Thereof result from at-equity measured investments	-	-1,970	-	-
Earnings before taxes (EBT)	281,379	481,625	153,927	154,721
Income tax expense	79,146	81,091	38,762	34,903
Consolidated profit	202,232	400,534	115,164	119,818
Of which attributable to minority interests	9,310	10,356	3,292	3,670
Of which attributable to shareholders of Sixt SE	192,923	390,178	111,872	116,147

Consolidated statement of comprehensive income	9M	9M
in EUR thou.	2019	2018
Consolidated profit	202,232	400,534
Other comprehensive income (not recognised in the income statement)	20,504	8,879
Components that could be recognised in the income statement in future
Currency translation gains/losses	20,872	8,899
Changes in the fair value of derivative financial instruments in hedge relationship	-798	-20
Related deferred taxes	430	-
Total comprehensive income	222,736	409,414
Of which attributable to minority interests	9,208	10,530
Of which attributable to shareholders of Sixt SE	213,528	398,884

4.2 CONSOLIDATED BALANCE SHEET

Assets
in EUR thou.	30 Sep. 2019	31 Dec. 2018
Non-current assets
Goodwill	28,598	28,204
Intangible assets	30,107	29,415
Property and equipment	543,812	201,509
Lease assets	1,125,834	1,204,419
Financial assets	2,301	4,042
Other receivables and assets	5,351	5,111
Deferred tax assets	46,428	29,653
Total non-current assets	1,782,432	1,502,353
Current assets
Rental vehicles	3,418,250	2,605,207
Inventories	104,636	97,564
Trade receivables	907,842	558,848
Other receivables and assets	333,828	267,153
Income tax receivables	23,417	16,246
Cash and bank balances	87,922	145,936
Total current assets	4,875,896	3,690,954
Total assets	6,658,328	5,193,307

Equity and liabilities
in EUR thou.	30 Sep. 2019	31 Dec. 2018
Equity
Subscribed capital	120,175	120,175
Capital reserves	242,432	241,412
Other reserves	1,067,345	955,055
Minority interests	128,859	125,381
Total equity	1,558,811	1,442,023
Non-current liabilities and provisions
Provisions for pensions and other post-employment benefits	2,998	2,427
Other provisions	1,053	1,053
Financial liabilities	2,541,853	2,290,638
Other liabilities	2,063	1,070
Deferred tax liabilities	42,438	32,800
Total non-current liabilities and provisions	2,590,406	2,327,988
Current liabilities and provisions
Other provisions	116,471	112,314
Income tax liabilities	42,925	53,844
Financial liabilities	1,480,384	448,826
Trade payables	695,716	644,391
Other liabilities	173,614	163,921
Total current liabilities and provisions	2,509,110	1,423,296
Total equity and liabilities	6,658,328	5,193,307

4.3 CONSOLIDATED CASH FLOW STATEMENT

Consolidated cash flow statement	9M	9M
in EUR thou.	2019	2018
Operating activities
Consolidated profit	202,232	400,534
Income taxes recognised in income statement	84,523	93,608
Income taxes paid	-104,086	-64,758
Financial result recognised in income statement1	30,462	26,594
Interest received	510	708
Interest paid	-31,786	-26,848
Dividends received	250	300
Depreciation and amortisation	524,752	405,325
Income from disposal of fixed assets	-1,032	-5,971
Income from disposal of financial assets	-	-196,085
Other (non-)cash expenses and income	6,146	20,410
Gross cash flow	711,971	653,818
Proceeds from disposal of lease assets	244,781	206,323
Payments for investments in lease assets	-294,609	-386,895
Change in rental vehicles, net	-1,118,814	-992,525
Change in inventories	-7,072	-5,660
Change in trade receivables	-348,994	-231,580
Change in trade payables	51,325	-90,767
Change in other net assets	-49,989	-27,365
Net cash flows used in operating activities	-811,401	-874,651
Investing activities
Proceeds from disposal of intangible assets, property and equipment	2,936	1
Proceeds from disposal of financial assets	-	209,000
Payments for investments in intangible assets, property and equipment	-34,397	-45,565
Payments for investments in financial assets	-1,137	-281
Payments for acquisitions less acquired cash and cash equivalents	-	-5,982
Net cash flows used in/from investing activities	-32,598	157,173
Financing activities
Payments made due to the purchase of treasury shares	-2,712	-2,570
Dividends paid	-107,004	-193,849
Payments received from taken out borrower's note loans, bonds and bank loans	590,983	835,935
Payments made for redemption of borrower's note loans, bonds, bank loans and lease liabilities	-251,952	-330,340
Payments made for redemption of/payments received from taken out short-term financial liabilities2	554,856	400,997
Net cash flows from financing activities	784,171	710,172
Net change in cash and cash equivalents	-59,827	-7,306
Effect of exchange rate changes on cash and cash equivalents	650	409
Changes in the scope of consolidation	1,163	-
Cash and cash equivalents at 1 Jan.	145,936	87,585
Cash and cash equivalents at 30 Sep.	87,922	80,688

¹ Excluding income from investments

² Short-term borrowings with terms of up to three months and quick turnover

4.4 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Consolidated statement of changes in equity in EUR thou.	Subscribed capital	Capital reserves	Other reserves1	Treasury shares	Equity attributable to shareholders of Sixt SE	Minority interests	Total equity
1 Jan. 2019	120,175	241,412	955,055	-	1,316,642	125,381	1,442,023
Consolidated profit	-	-	192,923	-	192,923	9,310	202,232
Dividend payments 2018	-	-	-101,260	-	-101,260	-5,744	-107,004
Other comprehensive income	-	-	20,606	-	20,606	-102	20,504
Purchase of treasury shares	-	-	-	-2,712	-2,712	-	-2,712
Re-issuance of treasury shares	-	-	-	2,712	2,712	-	2,712
Increase due to the employee participation programme	-	1,005	-	-	1,005	18	1,023
Other changes	-	15	21	-	36	-3	33
30 Sep. 2019	120,175	242,432	1,067,345	-	1,429,952	128,859	1,558,811
31 Dec. 2017	120,175	242,512	696,148	-	1,058,834	119,020	1,177,854
Adjustment on adoption of IFRS 9	-	-	13,563	-	13,563	11	13,574
1 Jan. 2018	120,175	242,512	709,710	-	1,072,397	119,031	1,191,428
Consolidated profit	-	-	390,178	-	390,178	10,356	400,534
Dividend payments 2017	-	-	-188,105	-	-188,105	-5,744	-193,849
Other comprehensive income	-	-	8,706	-	8,706	174	8,879
Purchase of treasury shares	-	-	-	-2,570	-2,570	-	-2,570
Re-issuance of treasury shares	-	-	-	2,570	2,570	-	2,570
Increase due to the employee participation programme	-	848	-	-	848	19	867
Other changes	-	-	-	-	-	-2	-2
30 Sep. 2018	120,175	243,360	920,489	-	1,284,024	123,833	1,407,856

1 Including retained earnings

4.5 ADDITIONAL FINANCIAL INFORMATION

Revenue

Revenue is broken down as follows:

	Germany		Abroad		Total	Change
9M 2019	9M 2018	9M 2019	9M 2018	9M 2019	9M 2018	in %
629.9	591.1	1,096.7	892.6	1,726.6	1,483.6	16.4
97.0	82.6	81.1	58.6	178.1	141.3	26.1
726.9	673.7	1,177.8	951.2	1,904.6	1,624.9	17.2
149.6	157.5	17.7	18.8	167.3	176.3	-5.1
						0.4
						16.9
567.2	534.7	56.4	56.3	623.6	591.1	5.5
3.3	3.6	-	0.3	3.3	3.8	-14.0
1,297.4	1,212.0	1,234.2	1,007.8	2,531.6	2,219.8	14.0
	Germany		Abroad		Total	Change
Q3 2019	Q3 2018	Q3 2019	Q3 2018	Q3 2019	Q3 2018	in %
237.4	221.4	471.0	393.0	708.5	614.4	15.3
37.3	32.6	31.2	23.4	68.5	56.0	22.3
274.7	254.0	502.2	416.4	776.9	670.4	15.9
49.6	53.3	5.9	6.1	55.5	59.4	-6.6
51.2	51.9	7.6	7.4	58.7	59.2	-0.9
82.6	78.6	5.0	5.3	87.6	83.9	4.4
183.4	183.7	18.4	18.8	201.8	202.6	-0.4
1.5	1.6	-	0.1	1.5	1.7	-11.9
459.5	439.3	520.7	435.3	980.2	874.6	12.1
	149.9 267.6	149.9 227.2	23.3 15.4	22.7 14.9	173.3 283.0	172.6 242.1

The reported revenue in the Mobility Business Unit (rental revenue and other revenue from rental business) as well as in the Leasing Business Unit (leasing revenue and other revenue from leasing business) are together described as "operating revenue". In the nine months period of 2019 operating revenue increased by 13.7% to EUR 2,245.2 million (9M 2018: EUR 1,973.9 million).

Fleet expenses and cost of lease assets

Fleet expenses and cost of lease assets split up as follows:

Fleet expenses and cost of lease assets	9M	9M	Change
in EUR million	2019	2018	in %
Repairs, maintenance and reconditioning	275.2	231.1	19.1
Fuel	88.3	84.5	4.5
Insurance	87.4	72.6	20.4
Transportation	44.4	36.8	20.5
Taxes and charges	24.7	18.7	32.1
Other, including selling expenses and expenses from write-downs on lease assets intended for sale	352.3	301.1	17.0
Group total	872.3	744.8	17.1

Depreciation and amortisation expense

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

Depreciation and amortisation expense	9M	9M	Change
in EUR million	2019	2018	in %
Rental vehicles	305.8	239.8	27.5
Lease assets	138.5	147.2	-5.9
Property and equipment1	73.8	12.2	>100
Intangible assets	6.6	6.1	8.7
Group total	524.8	405.3	29.5

1 In 2019 including the depreciation on right-of-use assets from leases, following the application of IFRS 16.

Other operating expenses

Other operating expenses are broken down as follows:

Other operating expenses	9M	9M	Change
in EUR million	2019	2018	in %
Leasing expenses	57.0	54.7	4.1
Commissions	168.6	166.8	1.1
Expenses for buildings	38.8	60.2	-35.6
Other selling and marketing expenses	63.9	57.9	10.3
Expenses from write-downs of receivables	32.5	31.2	4.2
Audit, legal, advisory costs, and investor relations expenses	17.2	17.2	-0.4
Other personnel services	60.9	54.4	12.0
Expenses for IT and communication services	16.5	19.9	-17.1
Currency translation/consolidation	89.8	96.5	-6.9
Miscellaneous expenses	44.0	34.0	29.5
Group total	589.2	592.9	-0.6

Net finance costs

Net finance costs of EUR -30.6 million (9M 2018: EUR 167.9 million) contain net interest expense of EUR -30.3 million (9M 2018: EUR -25.8 million), included therein interest expense on lease liabilities recognised according to IFRS 16. In addition, the net finance costs include the result from interest rate hedging transactions in the amount of EUR -0.1 million (9M 2018: EUR -0.8 million). In the previous year, the net finance costs also included income from the sale of the stake in the joint venture DriveNow in the amount of EUR 196.1 million as well as the result of at-equity measured investments in the amount of EUR -2.0 million.

Income tax expense

The income tax expense is composed of current income tax of EUR 84.5 million (9M 2018: EUR 93.6 million), as well as deferred taxes of EUR -5.4 million (9M 2018: EUR -12.5 million). Based on its earnings before taxes (EBT), the Sixt Group's tax rate was 28% (9M 2018: 17%).

Lease assets

Lease assets decreased by EUR 78.6 million to EUR 1.13 billion as at reporting date (31 December 2018: EUR 1.20 billion).

Rental vehicles

The rental vehicles item increased for seasonal reasons significantly by EUR 0.81 billion as against 31 December 2018, up from EUR 2.61 billion to EUR 3.42 billion.

Property and equipment

Property and equipment with a book value of EUR 544 million (31 December 2018: EUR 202 million) include in the reporting period also the right of use assets following the application of IFRS 16.

Other receivables and assets

Other receivables and assets can be broken down as follows:

Other receivables and assets
in EUR million	30 Sep. 2019	31 Dec. 2018
Financial other receivables and assets
Finance lease receivables	2.4	3.7
Receivables from affiliated companies and
from other investees	1.3	1.3
Miscellaneous assets	81.5	82.7
Non-financial other receivables and assets
Other recoverable taxes	63.6	22.3
Insurance claims	43.4	39.2
Deferred expense	29.8	24.0
Delivery claims for vehicles of the rental and lease fleets	117.2	99.0
Group total	339.2	272.3
Thereof current	333.8	267.2
Thereof non-current	5.4	5.1

Equity

The share capital of Sixt SE as at 30 September 2019 amounts unchanged to EUR 120,174,996 (31 December 2018: EUR 120,174,996).

The share capital is composed of:

Composition of the share capital	No-par value shares	Nominal value in EUR	No-par value shares	Nominal value in EUR
		30 Sep. 2019		31 Dec. 2018
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 2 June 2016 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 1 June 2021 ordinary bearer shares and/or preference bearer shares of the Company 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 can 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. On the basis of the aforementioned authorisation the Managing Board decided in April 2019, with the consent of the Supervisory Board, for a share buyback programme, which serves to meet the Company's obligations to grant preference shares to employees and members of the Company's administrative and management bodies and their affiliated companies under the Matching Stock Programme (MSP 2012). The share buyback programme was completed on 29 April 2019. At that time, Sixt SE repurchased in total 40,679 preference shares with a total value of EUR 2.7 million (excluding incidental purchase expenses). As at reporting date the authorisation has not yet been fully exercised.

Minority interests

Minority interests are related entirely to the Leasing Business Unit. Since the IPO of Sixt Leasing SE in May 2015 the interest Sixt SE holds in Sixt Leasing SE and its subsidiaries is unchanged at 41.9%.

Authorised capital

By resolution of the Annual General Meeting of 2 June 2016 the Managing 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 1 June 2021, with the consent of the Supervisory Board, by up to a maximum of EUR 35,840,000 by issuing new no-par value bearer shares against cash and/or non-cash contributions, whereby the shareholders' pre-emptive rights may be excluded under certain conditions (Authorised capital 2016).

Conditional capital

By resolution of the Annual General Meeting of 2 June 2016 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 1 June 2021 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 ordinary 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 2 June 2016 by up to EUR 15,360,000 (Conditional capital 2016). 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.

Profit participation bonds and rights

By resolution of the Annual General Meeting of 30 June 2017 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 29 June 2022 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.

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 Sep. 2019	31 Dec. 2018	30 Sep. 2019	31 Dec. 2018	30 Sep. 2019	31 Dec. 2018
Borrower's note loans	80.0	93.0	791.8	565.0	201.6	108.8
Bonds	249.7	-	997.7	998.3	-	246.8
Commercial papers	531.8	-	-	-	-	-
Liabilities to banks	523.2	337.0	230.0	301.0	57.5	59.8
Lease liabilities	83.9	4.0	187.5	10.9	75.6	-
Other liabilities	11.8	14.9	-	-	-	-
Group total	1,480.4	448.8	2,207.1	1,875.2	334.8	415.4

Borrower's note loans were raised in several tranches, with nominal terms between four and seven years. In the reporting period, new long-term borrower's note loans with terms of five and a half and seven years and a total volume of EUR 350 million were issued. The borrower's note loans reported with short-term residual maturity are due for repayment in the fourth quarter of 2019 and the second quarter of 2020.

The bonds relate mainly to the 2014/2020 bond issued in 2014, the 2016/2022 bond issued in 2016 and the 2018/2024 bond issued in 2018 by Sixt SE, as well as the 2017/2021 and 2018/2022 bonds issued by Sixt Leasing SE. The bond with a nominal value of EUR 250 million presented under the short-term financial liabilities is due for repayment in the second quarter of 2020.

The liabilities to banks result among others from the ABS programme launched by Sixt Leasing SE and a long-term real estate loan.

The lease liabilities include in addition to the obligations under leases presented already in the prior year, that were entered into to refinance the lease fleet, the liabilities from items recognised in accordance with IFRS 16.

Current other provisions

As was the case at year-end 2018, current other provisions primarily comprise provisions for taxes, legal costs and the operating rental business (fleet related costs) as well as employee-related provisions.

Group segment reporting

The Sixt Group is active in the two main business areas of Mobility and Leasing. The former Vehicle Rental Business Unit was renamed in "Mobility Business Unit" to reflect the scope of offered mobility services. In addition, in this context several administrative and financing activities which up to now have been allocated to the Other segment, will be reported in the Mobility Business Unit as well. Prior-year figures have been adjusted accordingly. Activities that cannot be allocated to the Mobility or Leasing segments, such as holding company activities and real estate leasing are combined in the Other segment. So far as results from at-equity measured investments can be directly attributed to a segment, these are displayed in the respective segment.

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

By Business Unit	Mobility		Leasing		Other		Reconciliation		Group
in EUR million	2019	2018	2019	2018	2019	2018	2019	2018	2019	2018
External revenue	1,904.6	1,624.9	623.6	591.1	3.3	3.8	-	-	2,531.6	2,219.8
Internal revenue	3.6	3.6	9.4	9.1	18.3	31.6	-31.3	-44.2	-	-
Total revenue	1,908.3	1,628.4	633.0	600.1	21.6	35.5	-31.3	-44.2	2,531.6	2,219.8
Fleet expenses and cost of lease assets	466.0	378.3	418.9	378.0	-	0.0	-12.7	-11.5	872.3	744.8
Depreciation and amortisation expense	380.7	254.5	140.6	147.7	3.5	3.1	-	-	524.8	405.3
EBIT1	279.8	280.3	30.4	33.6	1.8	-0.2	-	0.0	311.9	313.8
Net finance costs	-19.8	-17.5	-9.0	-10.3	-1.8	195.7	-	-0.0	-30.6	167.9
Result from at-equity measured investments	-	-2.0	-	-	-	-	-	-	-	-2.0
EBT2	260.0	262.8	21.4	23.4	-0.0	195.5	-	-	281.4	481.6
Investments3, 4	55.2	27.5	299.2	390.2	107.7	101.1	-91.7	-86.0	370.4	432.7

By Region	Germany		North America		Europe/Other		Reconciliation		Group
in EUR million	2019	2018	2019	2018	2019	2018	2019	2018	2019	2018
Total revenue	1,343.5	1,222.3	377.6	284.7	886.5	726.2	-76.0	-13.4	2,531.6	2,219.8
Investments3, 4	383.0	475.2	7.4	5.3	69.0	44.6	-89.1	-92.3	370.4	432.7

¹ Corresponds to earnings before interest and taxes (EBIT)

² Corresponds to earnings before taxes (EBT)

³ Excluding rental assets

4 Including additions to right of use assets resulting from application of IFRS 16. Prior-year comparative information is not adjusted.

4.6 CONTINGENT LIABILITIES

There were no material changes in contingent liabilities resulting from guarantees or similar obligations in the period under review as against the 2018 consolidated financial statements. Following the first-time adoption of IFRS 16 (Leases) a significant portion of the other financial obligations reported as at 31 December 2018 are recognised in the balance sheet as at 30 September 2019.

4.7 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 September 2019 compared to those reported as of 31 December 2018. For further details please refer to the consolidated financial statements of Sixt SE as of 31 December 2018 in the Annual Report 2018 (Notes to the consolidated financial statements "5.4 Related party disclosures").

The notifications received by Sixt SE during the reporting period concerning transactions pursuant to article 19 of the European Market Abuse Directive were duly published and can be retrieved on the website of Sixt SE at ir.sixt.com under the tab "Investor Relations – Corporate Governance – Managers' Transactions".

Due to rounding it is possible that individual figures presented in this Group Quarterly Statement may not add up to the totals shown and that the nine-months figures listed may not follow from adding up the individual quarterly figures. For the same reason, the percentage figures presented may not exactly reflect the absolute figures they relate to.

Pullach, 13 November 2019

Sixt SE The Managing Board

Sixt SE Sixt SE Zugspitzstraße 1 Zugspitzstraße 1

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

Investor Relations website ir.sixt.com Further sites sixt.com about.sixt.com

Contact Published by 82049 Pullach, Germany 82049 Pullach, Germany