STATSE

INNOVATOR

Annual Report 2021

THE SIXT GROUP IN FIGURES

in EUR million	2021	2020	Change 2021 on 2020 in %	2019
Revenue	2,282	1,532	49.0	2,501
Segment Germany	740	679	8.9	978
Segment Europe	946	577	64.0	1,033
Segment North America	585	264	121.3	483
Other	13	12	6.5	7
Earnings before net finance costs and taxes (EBIT)	479	-49	-1,083.8	339
Corporate EBITDA	576	83	598.2	421
Earnings before taxes (EBT)	442	-82	-642.2	308
Return on revenue before taxes (in %)	19.4	-5.3	24.7 points	12.3
Consolidated profit/loss	313	2	15,821.3	247
Net income per share (basic)
Ordinary share (in EUR)	6.66	-0.72	-1,031.6	4.97
Preference share (in EUR)	6.68	-0.70	-1,061.3	5.02
Total assets	4,521	4,428	2.1	6,249
Rental vehicles	2,847	2,205	29.1	3,033
Equity	1,746	1,395	25.2	1,592
Equity ratio (in %)	38.6	31.5	7.1 points	25.5
Non-current financial liabilities	1,603	1,929	-16.9	2,653
Current financial liabilities	399	450	-11.3	785
Dividend per share
Ordinary share (in EUR)	3.70¹	-	-	-
Preference share (in EUR)	3.72¹	0.05	7,340.0	0.05
Total dividend, net	174.0²	0.8	20,896.5	0.8
Number of employees³	6,399	6,921	-7.5	8,105
Number of locations worldwide (31 Dec.)³	2,180	2,067	5.5	2,111

¹ Proposal by the management
² Annual average
³ Including franchise countries

CONTENT

+57%

market capitalisation of Sixt SE 2021

A 001 To our shareholders
B 026 Management Report
C 102 Consolidated Financial Statements
D 157 Further information

For better readability, we use the generic masculine in this report. For the sake of linguistic simplification, it should be understood as gender-neutral – this form of language is value-free and does not imply any discrimination against other genders.

RECORD YEAR

> We create sustainable value for all stakeholders as a global, highly profitable mobility provider

Sixt is stronger than ever before. Thus, 2021 was a record year despite challenging conditions due to the pandemic. We succeeded in increasing our pre-tax profit to EUR 442 million after a loss the previous year. We have improved our market positions in our corporate countries worldwide and are now in the process of becoming a leading provider in the world's largest market, the US. Sixt has a very healthy balance sheet with an equity ratio of over 38%. Thanks to our good liquidity position, we were able to continue to invest heavily in our future growth even in the difficult years of the pandemic and will increasingly do so in 2022. This will allow us to expand our market leadership and continue our journey as one of the most profitable mobility service providers. We continue to build our global ecosystem for mobility that is simple, flexible and inspiring for our customers, thereby changing the way the world moves, true to our company vision. Sustainability is the focus of our actions at all levels. All our stakeholders, employees, shareholders and, above all, our customers are likely to benefit from this in 2022.

Our vision:
We change the way
the world moves

Sixt SE Annual Report 2021 — 1

PIONEER

55 We are shaping the future of global mobility

Sixt continues to evolve and become a pioneer and co-creator of the future of global mobility. Based on the expected dramatic change in people's mobility thinking, we must and will offer our customers maximum flexibility, user-friendliness, and freedom in their mobility — without the need to own a vehicle. This will result in new business models and huge future potential, which we are addressing with our platform ONE. While we were still limited to the USD 65 billion car rental market in 2021, markets in the USD trillion range will open up for Sixt as an established diversified digital mobility provider by 2050. This future has already begun for Sixt.

The Sixt leadership claim is based on our unique selling points:

We are technological leaders and have a fully digitalised and integrated business model.
We are diversified and can react flexibly to changing conditions.
We operate cost-efficiently and have unique financial strength to fund future growth.
We consistently follow a premium strategy:
in terms of our products, our service, and our vehicle fleet.

2 — Sixt SE Annual Report 2021

THE RIGHT MOBILITY OFFER FOR EVERY CUSTOMER WISH AT ANY TIME WORLDWIDE:

SixT rent

The basis of the company's success
2,180 locations worldwide
International expansion

SixT share

The future of mobility
National and international roll-out
Sustainability focus

SixT ride

New transfer services
Huge partner network
Already in >400 cities worldwide

SixT +

Subscription offer in more and more countries
Dynamic customer demand
Flexible alternative to buying a car

SixT truck

Already >900 locations
International expansion
Also included in the subscription model since 2022

Sixt SE Annual Report 2021 — 3

THE SECRET BEHIND OUR SUCCESS

The secret behind Sixt's success is based on our ability to always excite our customers and the public for our mobility offerings. We want to make it as easy as possible for our customers to get from A to B. We offer them transparent and flexible mobility alternatives whenever and wherever they want. To do this, we offer them different mobility alternatives transparently and flexibly, whenever and wherever they need them.

Accordingly, the scalability of Sixt into a global megabrand is a key component of our strategy. To this end, we will invest more than EUR 100 million in our brand in 2022. Sixt has by far the fastest growing brand value in the car rental sector worldwide and tripled its brand value from 2017 to 2022 to more than EUR 1 billion. This means Sixt is already one of the most valuable car rental brands worldwide, according to the consultancy Brand Finance. We address customer needs through various sales channels, in particular through the consistent expansion and scalability of the integrated and fully digitalised mobility platform ONE. ONE is designed to make it as easy as possible for customers to obtain an optimal product offer. The offer of further attractive partner services also plays an important role in this. Products, service and vehicles follow Sixt's clearly defined premium strategy. The pioneering role in the future design of mobility worldwide opens huge growth opportunities for us in the private and also in the corporate customer business. The focus is primarily on the expansion of Sixt's global presence through various mobility offerings surrounding the core business of vehicle rental. The company's high level of technological expertise is the engine of its success. Our employees at SIXT TECH ensure that the digitalisation of the Group is always state-of-the-art and that we are a technological pioneer for the mobility of the future.

We take care of all our employees worldwide. They and their permanent enthusiasm for the Sixt team spirit are our most valuable assets. We can only realise our ambitious goals and great potential through trust-based and performance-driven company management. Accordingly, a large share of our investment flows into the expansion and further development of our personnel. In addition, we are also aware of our responsibility with regard to sustainability and towards society, which is documented in our extensive social commitment.

4 — Sixt SE Annual Report 2021

WE ARE PIONEERS OF THE MOBILITY OF THE FUTURE

> Our competitors can only dream of the advantages of our unique platform model
>
> Konstantin Sixt

Sixt succeeded in achieving a record result in 2021 in a challenging environment. The key factor here was the company's ability to respond flexibly to various customer needs thanks to the integrated mobility platform. In addition, Sixt benefited from its healthy financial position, which is outstanding within the industry, and its ability to make targeted investments in growth areas, even in times of a pandemic. This is reflected in strong international growth, particularly in the US, and in newer product offerings such as the car subscription offer SIXT+ or Vans & Trucks. Here, the fruits of our progress in digitalisation and internationalisation from previous years could be reaped in 2021. The outstanding earnings quality was also positively influenced by high cost efficiency from the fully digitalised product range. Sixt has impressively positioned itself as a pioneer of the mobility of the future. The coming years promise further growth potential and the chance to achieve high profitability.

MOBILITY PLATFORM

Our mobility platform ONE, which was established in 2019, is at the heart of our business model. Via the SIXT app, our customers can flexibly, easily and efficiently access the entire range of products and services offered by Sixt and its partners. This not only increases the quality of service and interaction with our customers, but also allows Sixt an almost unlimited scalability of all offers and the opportunity to react cost-efficiently to changing conditions thanks to the consistent use of artificial intelligence. This is also the basis for our high earnings quality. Accordingly, Sixt is working consistently on expanding its platform offering and will continue to invest heavily in the company's technological excellence in 2022 and subsequent years. In 2021, for example, an average of more than 700 IT and software developers worked on further optimising the user-friendliness of the platform and the app, and the trend is clearly pointed upwards.

The digital revolution of global mobility through ONE has only just begun!

Sixt SE Annual Report 2021

Sixt is stronger and more successful than ever before!

Alexander Sixt

The Sixt Management Board shares the highlights of the past financial year and what can be expected from the company in the future in an interview.

Mr. Sixt, how would you sum up financial year 2021?

ALEXANDER SIXT For me, 2021 clearly falls under the heading “Sixt is back” and stronger and more successful than ever before! After the crisis year of 2020, we were confident that we could return to a profitable growth course. However, we were pleasantly surprised that with pre-tax profit of 442 million euros, we left everything that has ever been achieved at Sixt far behind us, despite our very ambitious expectations. We are proud of this and owe a great debt of gratitude to all our employees worldwide.

How do you explain this success?

KONSTANTIN SIXT The Sixt success story is based first and foremost on our future and growth-oriented business model, which is also largely resistant to crises. Thanks to our well-diversified and fully digitalised product and service platform, we can offer our customers the form of mobility they need at any time, more or less worldwide. Thanks to our strong financial structure within the industry, we were also able to invest in our clearly defined growth areas during the corona crisis – and thus anti-cyclically. Accordingly, we have grown strongly internationally and have gained market share across the board.

8 — Sixt SE Annual Report 2021

What were your personal highlights?

NICO GABRIEL There were actually a few: While the competition was deep into restructuring and self-discovery mode, we expanded our network of owned and franchised locations by more than 100 stations in 2021. We have grown significantly in all our corporate countries, our US business is running at all-time highs, we are the market leader in Europe, we have significantly expanded our presence in Italy and France and we have gotten off to a very strong start in the Australian market together with the number one local partner. Our customers rented more than 4 million vehicles at more than 2,100 locations last year. All our growth initiatives are taking effect.

PROF. DR. KAI ANDREJEWSKI ... and this enabled us to report pre-tax profit of 442 million euros, which is more than 100 million euros above the previous record level* before the coronavirus pandemic. Our balance sheet quality is excellent with an equity ratio of 39%. This means we can finance our growth ourselves and react to changing conditions with the greatest flexibility. It also means that we are always in a position to underpin our dynamic growth with personnel. In fact, we welcomed many new employees worldwide to the Sixt family in 2021. We are thus not only actively shaping our own positive future, but also sustainably shaping that of our industry.

What does the future of mobility and, accordingly, that of Sixt look like?

KONSTANTIN SIXT The future of mobility, and thus our own future, is characterised by a massive change in people's mobility thinking. In the next 30 years, more and more people will want maximum flexibility and freedom in mobility without the need to own a vehicle. And the issue of sustainability will play a very important role in this because it creates completely new business models and opportunities. By consistently transforming our business model into an integrated mobility platform, we estimate that the market potential we can address will grow from 65 billion US dollars in 2021 into the trillion US dollar range by 2050!

442 million euros

pre-tax profit

ALEXANDER SIXT ... and that is why we have consistently aligned Sixt as the digital mobility platform ONE for several years. As a result, Sixt is perceived worldwide as a leading digital mobility provider. Coming from the classic and internationally expanding rental business, we already successfully offer modern car sharing via SIXT share, a strongly growing subscription business via SIXT+ and transfer services with partners in the taxi and ride-hailing environment in many countries via our SIXT app. We are also very satisfied with our expanding Vans & Trucks business, where we are successively expanding our market position through many new locations and offers. In addition, we provide our business customers with specially tailored mobility models via SIXT unlimited, which contain the best of all worlds, so to speak. Across all of the above offers, we are benefiting from continued high demand from private customers and a strongly recovering business in the corporate customer segment.

KONSTANTIN SIXT We are consistently aligning our offering to suit customer needs, have a high variable cost base of over 70%, are financially rock solid and our technologically unique platform model allows us a high degree of scalability and flexibility. Our competitors can only dream of this. We will take full advantage of this competitive advantage and continue to build on it. In 2021, an average of more than 700 of our employees were involved in our technological development, and this will soon be more than 1,000. We will continue to invest massively in expansion and growth; therefore you can expect a lot more from us.

The 2018 EBT of EUR 534.6 million included the one-off effect that resulted from the sale of the DriveNow investment; the adjusted EBT amounted to EUR 336.7 million.

442 million euros

UNIQUE POSITION

Making the business model scalable is the vision of many companies. We have achieved it. Thanks to the state-of-the-art mobility platform ONE, the Group can optimise the deployment of its fleet of more than 125,000 vehicles and flexibly adapt it in response to changing market conditions and the resulting customer demands and wishes. Thanks to this unique position, Sixt has used the pandemic crisis as an opportunity and is stronger than ever before. The basis for this was also the risk-conscious, very solid financing policy, which enabled the company to invest in future growth and in the successful premium approach at all levels and to take valuable market share from the competition. For example, Sixt's share in the core market of Europe rose from 17% to just under 24% within two years. The high cost efficiency and high variable cost share of over 70% are likewise unique in the industry. In addition, the Group is characterised by a broadly diversified customer and location mix, which contributes to the diversification of market risks. Sixt thus has a unique business model that simultaneously maximises opportunities and growth and minimises risk.

Sixt SE Annual Report 2021 — 9

RESPONSIBILITY

> Our organisation should be climate neutral by the end of the decade

We are aware of our responsibility to society and our thousands of employees. Accordingly, we want to contribute to enabling sustainable mobility worldwide with our business model. Our vision is that Shared Mobility will increasingly replace individual mobility in the future. We want to inspire our customers to be flexibly and easily mobile worldwide without owning a car. Many vehicles stand around unused for the majority of their service life. We want to change that. Our mobility platform makes this possible by efficiently deploying our vehicle fleet wherever our customers need it at the moment through our diversified product offering. Either as a rental vehicle, a car subscription model or in the form of car sharing. In this way, Sixt is making its contribution to drastically reducing the number of vehicles in operation worldwide in the future and saving enormous amounts of $\mathrm{CO}_{2}$. In addition, we are also consistently gearing our own operating business towards sustainable management and are striving to make the Sixt organisation climate-neutral by the end of the decade and our product range climate-neutral by 2035. To this end, we will continue to invest heavily in the digitalisation of our business model and the expansion of our electric fleet, including the necessary charging infrastructure, in the years ahead.

10th Sixt SE Annual Report 2021

Our platform ONE and the SIXT app are the door openers for future growth for Vans & Trucks, too.

Nico Gabriel

I would be happy to come back to the outlook later on. Let's take a more detailed look at each of the strategy modules you mentioned: At the moment, classic vehicle rental still dominates, so you are subject to the classic competitive conditions, aren't you?

NICO GABRIEL The decisive differentiating factor is our premium strategy, which we consistently implement at all levels. Premium in terms of our products, our service and our vehicle fleet. In 2021, our fleet consisted of more than 125,000 cars on average, 57% of which could be allocated to the premium segment. This pays off for both private and corporate customers. Sixt is successful both nationally and internationally, and we will strongly expand our business in the future, especially outside Germany. And we are continuing to invest massively in our vehicle fleet; this amounted to over 5 billion euros in 2021. At the same time, our risk is limited: The majority of our vehicles are equipped with a buy-back agreement with the manufacturer or lessor.

But weren't you severely slowed down here last year by the material bottlenecks and thus the shortage of premium vehicles?

NICO GABRIEL It's true that we didn't get all the vehicles we would have liked – this is particularly true for electric vehicles. However, thanks to our very close, established relationships with the premium manufacturers, we have fared much better than the competition. Take a look at new car registrations in Germany in December, for example: 27% fewer new vehicles were registered than a year ago. By contrast, we added only 5% less vehicles to the rental fleet compared to the previous year, and we had nearly 5% more vehicles in the fleet at the end of 2021 than a year ago. However, this also means that we have to serve more market shares and new products such as SIXT+. Nevertheless, the shortage of vehicles had the positive side effect of a noticeable improvement in the quality of prices for rentals, which helped us to achieve our result.

WILL TO GROW

The record result and the significant growth in 2021 are no reason for us to lean back and relax. On the contrary, Sixt has used the last few years to set the course for further sustainable profitable growth. Our will to grow and the resulting opportunities are based primarily on the consistent expansion of our digital leadership position and further international expansion, particularly in the largest mobility market worldwide, the US. Furthermore, they are also based on leveraging the potential in the Vans & Trucks product segment and the global roll-out of our latest success component, the SIXT+ subscription offer. In terms of revenue, our US business is expected to catch up with Germany in the current year and cross the billion dollar threshold in 2023. We also see great future growth in the expansion of our global presence outside the US, both in the private customer and corporate customer segments. For example, the more than 100 new locations opened in 2021 are to be followed by many more. For 2022, we expect substantial contributions from Australia for the first time. The Vans & Trucks business will benefit from our established global network of now over 2,180 locations on the one hand and from the possibilities of our digital mobility platform and the SIXT app on the other. In addition, we have also been offering commercial vehicles on a subscription basis since the beginning of 2022. Customers are responding very positively to this and to the entire subscription offer, as the pleasing growth rates show. Accordingly, more and more customers worldwide will be able to access our subscription offer in the future. Our growth path is thus far from over.

12 — Sixt SE Annual Report 2021

Our revenue in the US is expected to grow to > 1 billion US dollars

Sixt SE Annual Report 2021 — 13

Our high balance sheet quality is the cornerstone for financing the transformation to the sustainable mobility of the future.

Prof. Dr. Kai Andrejewski

You already mentioned the topic of internationalisation, which brought Sixt a lot of pleasure in 2021. Where is this development heading?

ALEXANDER SIXT We see enormous potential for Sixt worldwide. Despite the solid growth in our German business, the share of our international activities has climbed from 29% to 67% since 2009. Our market share in our European markets has increased steadily and most recently stood at 24%, up from 17% in 2019, with the expansion of our activities in France and Italy also paying off. In Australia, we were able to enter into a franchise partnership with the largest automobile club there, NRMA, which has catapulted us to a market share of 13%. This has opened the door to one of the largest car rental markets in the world with a market volume of over one billion euros. In addition to a modern fleet of cars and trucks, Sixt also offers one of the country's largest electric rental fleets in Australia.

PROF. DR. KAI ANDREJEWSKI ... it is important to add here that our strategy in 2021 has resulted in a very well diversified distribution of results. For example, we earned 31% of Corporate EBITDA in Germany, 28% in the US and 41% in the rest of Europe. We have improved massively in all regions and are above the pre-pandemic level from 2019. In terms of revenue, we are also strongly approaching this distribution. Our excellent capital and financial position gives us sufficient room for manoeuvre for further innovation and growth steps.

AMBITIONS

Expect Better!

2021 was a very good year. But our ambition is to be even better in everything we do. Therefore, we are continuing our internationalisation and digitalisation strategy in the current year and continue to invest heavily in our products, in an improved customer experience and in geographic expansion. This includes entering the franchise market in Australia at the end of 2021, the roll-out of the expanded Vans & Trucks offering and establishing a presence at additional high traffic airports in the US. In addition, the focus is on expanding the e-mobility offering and corresponding investments in vehicles and the charging infrastructure. Overall, we will continue to invest heavily in staff expansion, fleet expansion, digitalisation and marketing in the current year. In addition to the further course of the coronavirus pandemic, the availability of vehicles remains generally tense for the overall market due to the current global chip shortage. Assuming this, and with explicit reference to risks from the uncertain overall geopolitical and economic situation, the revenue level should be significantly above consolidated revenue in 2021 and consolidated EBT in a range of EUR 380 million to EUR 480 million.

2022

Significant increase in consolidated revenue compared to 2021 and consolidated EBT of between EUR 380 million and EUR 480 million

Stat SE Annual Report 2021

That sounds like an outright pleasant result. But your success in the US probably gives you the greatest pleasure, correct?

ALEXANDER SIXT That's right. The US business more than doubled in terms of revenue last year and thus took a giant step towards becoming the largest single market in the world. We want to break the one billion dollar sales mark here in 2023. So far, we have focused primarily on the top 30 airports, which account for more than 30% of the US car rental market. Of the top 30 airports, we are already established at 26 and hope to reach 30 this year. We are already among the market leaders at one of the largest airports, in Miami. Our goal is to increase our market share at the top 30 airports to at least 10%. We will also gradually select lucrative locations in the big cities, however. Our share of the total market of more than 30 billion US dollars in 2022 is still small, so there is still a lot of room for improvement. Both domestic and international travellers in the US love our premium offer and we are increasingly successful with corporate clients.

Although it was not introduced until 2020, your SIXT+ subscription offer is already becoming a strategic focus in 2022. Here you are competing with some of your premium car manufacturers. What dimension can this business reach?

KONSTANTIN SIXT SIXT+ takes the changing mobility needs, especially during the coronavirus pandemic, into account in an ideal manner. It simply offers our customers a unique degree of flexibility. We are therefore seeing high demand from the retail and corporate business. Currently, Sixt already has more than 10,000 vehicles running on the subscription model. We can offer it in all countries and thus tap into completely new target audiences, small and medium-sized enterprises, for example. That is the great thing about our business model: when demand from the tourism business was weaker due to the pandemic, we were able to offer a larger number of vehicles as subscription models thanks to our platform. We have been thanked for this by many companies that were not sufficiently supplied by the manufacturers due to the shortage of vehicles caused by the material crisis. With offers like SIXT+, Sixt is perceived quite differently in the mobility world.

You have defined the topic of Vans & Trucks as another pillar of growth. Where is the charm for Sixt here?

NICO GABRIEL We are growing strongly here in a fragmented global market without clear market leaders, which has a volume of more than 10 billion US dollars in our European and American core markets. Our mobility platform ONE is also a fantastic door opener here. In addition to this unique digital sales component, which is of course mapped via the SIXT app, customers can flexibly use our global network of locations with over 2,100 points of presence. Since the first quarter of 2022, our customers here can now also use the SIXT+ truck subscription model, which offers them maximum flexibility.

Sixt has now also increasingly taken up the issue of sustainability. How is this compatible with the business model you just described?

PROF. DR. KAI ANDREJEWSKI First of all, the aspects E, S and G have not only been on the agenda at Sixt since today, but have been lived for a long time. We have now brought the topic together in a future-oriented sustainability strategy and defined measures by which we will be measured in the future. In this way, we want to document our commitment to sustainability and to our social responsibility. These key elements of our sustainability strategy will be a mainstay of the Sixt success story in the coming years and decades. After all, our vision is built on the idea that we offer people, our customers, the freedom to be flexible and mobile worldwide without owning a car: Shared Mobility as an important building block for achieving CO₂-neutrality targets.

16 — Sixt SE Annual Report 2021

Six SE Annual Report 2021 — 17

We want to continue to be the benchmark that the other mobility companies take as a role model!

The capital markets and the ESG rating agencies expect you to set concrete targets here. So what are Sixt's plans for the future?

PROF. DR. KAI ANDREJEWSKI That's right, the topic of sustainability is taking on a dominant position in more and more discussions with investors. This relates to our sustainability strategy and, of course, also to the measurability of our ambitions in this regard. In this context, we have also launched a broad project with the University of St. Gallen to make the topic of Shared Mobility and its future significance for a sustainable future more transparent and tangible for the public and to define corresponding sustainability KPIs. In contrast to individual mobility, we view Shared Mobility as the freedom for our customers to be mobile worldwide without owning their own vehicle. The mobility platform ONE already enables the implementation of such concepts today through the flexible use of vehicles across a diversified product range. In this way, Sixt is helping to drastically reduce the number of owner-occupied vehicles worldwide in the future and to save considerable amounts of $\mathrm{CO}{2}$ . We have set ourselves three sustainability goals: 1. We will significantly increase the share of zero-emission vehicles before 2035 at the expense of vehicles with combustion engines over time. 2. We aim to be carbon neutral by the end of the decade in terms of all direct greenhouse gas categories resulting from our own business activities and all indirect greenhouse gas categories resulting from the generation of energy procured by Sixt (performance-based) and 3. We will have met the prerequisite for a $\mathrm{CO}{2}$ -neutral business operations in the European corporate countries by 2035.

Now that we have arrived at the topic of targets: What are Sixt's operational and strategic plans for 2022 and beyond?

KONSTANTIN SIXT After a record year like 2021, the bar is naturally particularly high. Furthermore, the issue of the coronavirus pandemic will be with us for some time to come and have an impact on our business. Nevertheless, we are noticing that people are more mobile again. Accordingly, we started the year 2022 with a lot of self-confidence, especially since we know what great potential our business model will still offer at different levels in the future. Based on a continued revival of the international business and in particular our US activities, substantial contributions from the SIXT+ subscription offer as well as positive effects from the expansion in the Vans & Trucks segment, we expect to see a significant increase in consolidated operating revenue compared to the previous year's level. The extent of growth will of course continue to depend on the availability of new vehicles for our fleet. We expect the shortage of semiconductors to ease as the year progresses but see new risks from disrupted supply chains and missing components due to the war in Ukraine. Against this and in view of increased investment in our future growth as well as a relatively good price level extending at least into the second half of the financial year, we expect earnings before taxes in a range of 380 to 480 million euros.

ALEXANDER SIXT As I already said at the beginning of our conversation, we are in the process of opening up new mobility markets and securing or significantly expanding our innovation and market leadership worldwide. We have the financial means to play a key role in shaping the mobility of the future. In light of this, I am very confident that we will be able to continue to show an outstanding operative development within the industry and very good profitability in the years to come. We want to continue to be the benchmark that the other mobility companies take as a role model!

TO OUR SHAREHOLDERS

REPORT OF THE SUPERVISORY BOARD

General

In financial year 2021, the Supervisory Board of Sixt SE duly performed the duties incumbent on it according to the law and the Articles of Association to the best of its knowledge and belief. It advised the Management Board in close and trusting cooperation on matters of major importance to Sixt SE and the Group and carefully and continuously monitored the Management Board in its management of the business.

To this end, the Management Board informed the Supervisory Board in written and verbal form regularly, promptly, and comprehensively about the current business performance and the situation of the company and the Group. The Management Board submitted a written report every quarter that contained detailed information on the business performance and economic and financial position of Sixt SE as well as its domestic and foreign subsidiaries. At the Supervisory Board meetings, the Management Board explained the documents and reports on how the business developed, planning and company strategies. The Management Board involved the Supervisory Board in decisions of significant importance for the Sixt SE and the Group at an early stage. In the reporting year, there was no need to examine additional company documents above and beyond the reports and proposals for resolution submitted by the Management Board.

Apart from the meetings, the members of the Supervisory Board were in regular contact with the Management Board, especially the chairmen of the two corporate organs. The provisions of the German Corporate Governance Code and of the legal stipulations on stock corporations governing the duty of the Management Board to report to the Supervisory Board were consistently complied with.

The Supervisory Board convened for twelve meetings in the year under review in which it addressed the economic situation and strategic direction of the Group as well as the personnel situation in detail. Two of the four regular meetings were held via video conference to duly comply with corona-related restrictions. Two other regular meetings were held as joint meetings in person. In addition, the Supervisory Board convened eight times in the reporting period, either by telephone or video conference.

ERICH SIXT

Chairman of the Supervisory Board of Sixt SE since 16 June 2021
Born in 1944

Key issues in 2021

At the four regular meetings held in the reporting year, the Supervisory Board received comprehensive information from the Management Board on important issues relating to business development, the strategic focus, the risk situation and risk management, the internal control systems and the net assets, financial position and results of operations of Sixt SE and the Group. The Management Board attended these meetings, explained all matters to the members of the Supervisory Board and answered their questions. The Supervisory Board also convened regularly without the participation of the Management Board.

In the reporting year, the Supervisory Board's deliberations focused mainly on the following issues:

The Management Board informed the Supervisory Board in all regular meetings of the business development of the Sixt companies and in particular the effects of the worldwide coronavirus pandemic as well as the shortage of semiconductors and the short- and medium-term supply bottlenecks to be expected as a result. For Sixt Group, the focus was on adjusting the size of the fleet and operating capacities as a result of the renewed increase in bookings. In addition, the effects of the new virus variants and the constantly changing incidence of infection in Germany and abroad on business development were discussed and deliberated on an ongoing basis. In this context, the Supervisory Board acknowledged the forward-looking actions of the management, which made a significant contribution to the Sixt Group significantly exceeding its previous record annual result of 2019.

Sixt SE Annual Report 2021

TO OUR SHAREHOLDERS
REPORT OF THE SUPERVISORY BOARD

In April 2021, the Supervisory Board approved the implementation of a virtual Stock Performance Programme for financial year 2021 for a select group of employees and managers. The Supervisory Board supports the goal of allowing participants to share in the sustainable success of Sixt SE through the programme, which is designed to run for a long-term period of four years.

The Supervisory Board informed itself about the topics of sustainability and the development of the ESG Strategy and advised the Management Board in this regard. The focus was on the definition and delimitation of the sustainability goals.

Furthermore, the Supervisory Board was informed in detail about the further digitalisation measures, the expansion of the mobility platform ONE and, in particular, the success of the Sixt+ car subscription service. The focus was also on the cooperation with Mobileye for the operation of an autonomous fleet in Munich that was announced.

Further expansion and internationalisation were also on the Supervisory Board's agenda. One main focus was on the US market and the opening of new stations there.

The medium-term business plan for Sixt Group, which the Management Board submitted at the end of the reporting year, was also noted with approval by the Supervisory Board. The Supervisory Board deliberated in detail on the economic and strategic assumptions underlying this plan as they relate to customer requirements and behaviour, the development of demand, market opportunities and cost developments, especially in view of the unreliable estimates regarding the consequences of the coronavirus pandemic, which still cannot be fully assessed, and the supply bottlenecks at vehicle manufacturers caused by the shortage of semiconductors and the related effects on how the business develops.

In the year under review, the Supervisory Board also dealt intensively with the restructuring of the remuneration system as well as with the personnel changes on the Management Board of Sixt SE, which are described separately.

Other important issues that were addressed included the establishment of an Audit Committee and a Nomination Committee.

Report on the work of the committees

As of December 2021, the Supervisory Board had established an Audit Committee and a Nomination Committee to support it in its work. The Corporate Governance Declaration provides more detailed information on the tasks, composition and working methods of the committees.

In the reporting year, the Audit Committee elected Dr. Julian zu Putlitz Chairman of the Audit Committee on 22 December 2021 immediately after its establishment. No meetings of the Audit Committee and the Nomination Committee took place in the reporting year after the committees were established on 22 December 2021.

Individualised disclosure of meeting attendance in financial year 2021

The attendance rate at the meetings of the Supervisory Board was 100%. The members of the Supervisory Board attended the meetings of the Supervisory Board in the reporting period as follows:

Members of the Supervisory Board	Supervisory Board plenum
Erich Sixt (Member and Chairman since 16 June 2021)	5/5
Dr. Daniel Terberger (Deputy Chairman since 16 June 2021)	12/12
Dr. Julian zu Putlitz (since 16 June 2021)	5/5
Friedrich Joussen (Chairman until 16 June 2021)	7/7
Ralf Teckentrup (until 16 June 2021)	7/7

Conflicts of interest

There were no conflicts of interest of Supervisory Board members in the past financial year.

Corporate Governance

The Management Board and Supervisory Board report on the corporate governance topic in the Corporate Governance Declaration pursuant to Sections 289f, 315d of the German Commercial Code (HGB), which is published on the Internet at ir.sixt.eu under "Corporate Governance" as well as in this Annual Report. Furthermore, in June 2021, the Management Board and the Supervisory Board updated the Declaration of Conformity of December 2020 and issued the regular Declaration of Conformity pursuant to Section 161 of the German Stock Corporation Act (AktG) and made it permanently available to shareholders on the company's website at ir.sixt.eu in the "Corporate Governance" section in December 2021. Apart from a few exceptions outlined in the declaration, Sixt SE follows the

Sixt SE Annual Report 2021 — 19

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REPORT OF THE SUPERVISORY BOARD

recommendations of the Code in the version dated 16 December 2019 and applicable as of 20 March 2020.

One training measure of the Supervisory Board was held on the Financial Market Integrity Strengthening Act and its effects on Sixt SE in the year under review. Otherwise, the members of the Supervisory Board took part in the training and further education measures required to perform their tasks on their own responsibility.

Audit of the 2021 Annual Financial Statements and Consolidated Financial Statements

The Management Board prepared the Annual Financial Statements of Sixt SE as per 31 December 2021 in accordance with the requirements of the German Commercial Code (Handelsgesetzbuch / HGB) and the Consolidated Financial Statements and Combined Management Report as per 31 December 2021 in accordance with Section 315e of the German Commercial Code and on the basis of the International Financial Reporting Standards (IFRS), as adopted by the EU. According to the Law on Strengthening the Non-Financial Reporting of Companies in their Management and Group Management Reports (CSR Directive Implementation Act), the Combined Non-Financial Declaration of the Group is included in the Management Report.

Deloitte GmbH Wirtschaftsprüfungsgesellschaft, Munich, audited the Annual Financial Statements and Consolidated Financial Statements of Sixt SE as well as the Combined Management Report (with the exception of the Combined Non-Financial Declaration of the Group) and gave these documents their unqualified audit opinion. Furthermore, the auditor also determined that the Management Board had taken the appropriate measures required under Section 91 (2) AktG, in particular those relating to the establishment of a monitoring system, and that the monitoring system is suitable for the early detection of developments that could jeopardise the company as a going concern. The Supervisory Board had commissioned the auditor on the basis of the resolution passed by the Annual General Meeting on 16 June 2021.

Each member of the Supervisory Board received the documents together with the Management Board's Dependent Company Report and the auditor's audit reports as well as the Management Board's proposal on the appropriation of unappropriated profit in sufficient time for examination. The auditor attended the meeting of the Audit Committee on 24 March 2022 and the meeting of the Supervisory Board to approve the financial statements on 29 March 2022 and reported comprehensively on the course of the audit and its main results, addressing in particular the key audit

matters. The focal points of the audit included the subsequent valuation of leased assets, the recoverability of non-financial assets, the recoverability of shares in affiliated companies and receivables from affiliated companies, revenue recognition, the early risk detection system and risk reporting in the Management Report, the recoverability of deferred tax assets and trade receivables, the accounting of the Stock Performance Programme, the completeness of provisions and recognised leasing transactions in accordance with IFRS 16, the presentation of service relationships and agency agreements within the Group, and the reporting on transactions with related parties (Dependent Company Report).

The Audit Committee reviewed the financial statements and Management Reports at its meeting on 24 March 2022, taking into account the audit reports and focal points of the audit, and discussed them with the auditor. The Chairman of the Audit Committee reported on the results of this preliminary review at the meeting of the Supervisory Board on 29 March 2022. In addition, the auditor informed the Audit Committee about services provided by the audit firm and its network beyond the audit of the financial statements. In his opinion, there were no circumstances that could cast doubt on the independence of the auditor.

The Supervisory Board took due notice of the result of the audit and, following the completion of its own examination, which in particular covered the key audit matters described in the auditor's report, including the audit procedures, raised no objections. The Supervisory Board approved the Annual Financial Statements and Consolidated Financial Statements prepared by the Management Board and audited by the auditor, as well as the Combined Management Report (including the Combined Non-Financial Declaration of the Group contained in the Management Report). The 2021 Annual Financial Statements of Sixt SE were thus adopted in accordance with the provisions of the AktG. Following its own review, the Supervisory Board also concurred with the proposal of the Management Board on the allocation of the unappropriated profit for 2021.

The auditor included the report by the Management Board covering the relationship between Sixt SE and its affiliated companies in accordance with Section 312 of the AktG in its audit and submitted its audit report to the Supervisory Board. The audit by the auditor did not lead to any objections. The following unqualified audit opinion was issued: "On completion of our review and assessment in accordance with professional standards, we confirm that the actual disclosures made in the report are accurate."

20 — Sixt SE Annual Report 2021

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REPORT OF THE SUPERVISORY BOARD

The Supervisory Board's examination of the report covering the relationship between Sixt SE and its affiliated companies in accordance with Section 312 of the AktG did not give rise to any objections. The Supervisory Board therefore concurred with the auditor's findings. Following the completion of its own examination, the Supervisory Board had no objections to the Management Board's concluding statement concerning its relationships with its affiliated companies.

Personnel changes

There were various personnel changes in the Management Board and the Supervisory Board in the reporting period.

Mr. Daniel Marasch was responsible for the Vans & Trucks division on the Management Board of Sixt SE from 1 January 2021 and left by mutual agreement on 31 December 2021. Mr. Nico Gabriel has been a member of the Management Board since 18 January 2021 and took over the Operations division from Mr. Detlev Patsch, who retired in March 2021 after a career of more than 30 years with Sixt. Prof. Dr. Kai Andrejewski was appointed to the Management Board of Sixt SE on 1 June 2021 and took over the position of Chief Financial Officer (CFO) from Mr. Jörg Bremer, who left the Management Board on 31 May 2021.

The previous Chairman of the Management Board of Sixt SE, Mr. Erich Sixt, who successfully managed the company for more than 50 years, resigned from the Management Board at the end of the Annual General Meeting on 16 June 2021. In the course of this, the two members of the Management Board, Mr. Alexander Sixt and Mr. Konstantin Sixt, were appointed by the Supervisory Board to succeed him as joint Chairmen of the Management Board of Sixt SE.

Mr. Friedrich Joussen, Chairman of the Supervisory Board for many years, and Mr. Ralf Teckentrup, former Deputy Chairman of the Supervisory Board, resigned from their respective offices as members of the Supervisory Board with effect from the end of the Annual General Meeting on 16 June 2021. By resolution of the Annual General Meeting of Sixt SE on 16 June 2021, Mr.

Erich Sixt was elected to the Supervisory Board of Sixt SE by the Annual General Meeting to succeed Mr. Ralf Teckentrup. Dr. Julian zu Putlitz was appointed to the Supervisory Board as the successor to Mr. Friedrich Joussen on the basis of the right of appointment under the Articles of Association. Mr. Erich Sixt and Dr. Julian zu Putlitz were each elected and appointed for the remaining term of office of the two departing members, i.e., until the end of the Annual General Meeting that resolves on the formal approval of the actions of the Supervisory Board of Sixt SE for financial year 2024. In its constituent meeting on 16 June 2021, the Supervisory Board elected Mr. Erich Sixt Chairman of the Supervisory Board and Dr. Daniel Terberger Deputy Chairman.

Further information on the individual members of the Management Board and Supervisory Board, including information on the duration and end of their current appointments and details of their first appointment, can be found on the company's website at ir.sixt.eu in the "Management" section.

The Supervisory Board would like to expressly thank Mr Joussen, Mr. Teckentrup, Mr. Bremer, Mr. Marasch and Mr. Patsch for their achievements and personal commitment to Sixt SE and wishes them all the best for the future.

Thanks to the management and all employees

Notwithstanding a financial year 2021 that was still affected by the coronavirus pandemic, Sixt Group managed to significantly exceed its record annual result of 2019 and further expand its market position. This was only possible by strengthening the resilience of the business model, reacting quickly and appropriately to unforeseen events and changing market conditions, and making strategic investments during the crisis. The Supervisory Board would like to thank the members of the Management Board, all managing directors and all employees worldwide for their great personal commitment, ongoing dedication and constructive and trusting cooperation in these challenging times. It expresses its appreciation for their achievements for Sixt in the past financial year and is convinced that the Group will continue its history of profitable growth.

Pullach, March 2022

The Supervisory Board

ERICH SIXT
Chairman

DR. DANIEL TERBERGER
Deputy Chairman

DR. JULIAN ZU PUTLITZ
Board Member

Sixt SE Annual Report 2021 — 21

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SIXT SHARE

Equity markets bullish in 2021 despite ongoing coronavirus pandemic

Despite significant stress factors, such as the ongoing coronavirus pandemic and the noticeable increase in inflation rates, especially in major economies in the fourth quarter of 2021, most stock markets were on a record course in 2021. News on the course of the pandemic, such as the emergence or abatement of new waves of infection, the emergence of new virus variants such as Delta and Omicron, as well as the vaccination progress of the population, caused high price fluctuations.

The German Share Index (DAX) closed the stock market year up 16%, only 2% below its all-time high of mid-November 2021. The index gained significantly over the course of 2021, which was also related to the expected temporary easing of the coronavirus pandemic in the summer. After a significant decline for the leading index in the traditionally weak stock market month of September, it started a catch-up movement of around 8% to the all-time high of 16,290 points by the middle of the fourth quarter. At the end of 2021, the focus was again on several negative factors. For example, the global supply chain problems, which considerably dampened the interim economic growth. In addition, political conflicts in Asia and Eastern Europe are simmering and destabilising international security. Moreover, COVID-19 is far from defeated. What is now a fifth wave was significantly restricting public life again towards the end of 2021 and at the beginning of the reporting year.

In contrast to most of the previous years, the SDAX Small Cap Index, which also includes the ordinary shares of Sixt SE, was unable to rise quite as strongly as the DAX and posted an increase of 11% to a level of 16,415 points in the 2021 stock market year. Nevertheless, the dynamic performance of the index in previous years (18% in 2020 after 32% in 2019) was continued.

The US stock markets also developed positively again in 2021. After posting strong gains in previous years, the Dow Jones Index rose by 19% in 2021 and closed near its all-time high. The MSCI World rose by 20%.

The broad-based S&P 500 Index even jumped by 27% by 31 December 2021, the technology index NASDAQ 100 also by 27%.

Global equity markets continued to be supported in 2021 by monetary easing, massive bond-buying programmes, and the lowering of interest rates to zero by central banks in industrialised countries. This ample supply of liquidity to the markets laid the foundation for the rise of the markets already since the outbreak of the financial crisis in 2009. During the fight against the pandemic in 2021, the multi-billion-euro aid and stimulus programmes of the respective countries were also a support for the economy and the stock markets.

In mid-December 2021, the US Federal Reserve announced that it would end its bond purchases much earlier than planned in view of the sharp rise in inflation. The expansionary monetary policy is to be significantly scaled back as a result. In addition, on 16 March the US Federal Reserve announced that it would raise the interest rate by 25 basis points, thus triggering the cycle of interest rate hikes long feared by many market participants.

Sixt shares post significant outperformance in 2021

While in the first corona year 2020, shares in the tourism and travel industry in particular suffered massively from the consequences of the pandemic, the general conditions in 2021 can be described as positive for the sector due to the easing into the fall. Both the Sixt ordinary and the Sixt preference share were able to significantly outperform the positive performance of other shares within the sector as well as the DAX and SDAX indices.

Already in the first five months of the year, the ordinary share gained 34% compared to its price at the end of 2020, reaching an interim high of EUR 131.00. Significant gains in market share during the coronavirus pandemic, the very positive development of rental prices due to the shortage of vehicles, and the significant operational improvement in the Group's figures, including an increase in the forecasts for the full year 2021 (guidance), led to a significant outperformance of the Sixt ordinary share compared to all indices, a 58% rise in price. The Sixt ordinary share reached its high for the year of EUR 170.00 on 8 November 2021 and closed financial year 2021 at a price of EUR 155.60.

The Sixt preference share, which closed the year 2021 at a price of EUR 86.80, also recorded an increase in value of 51% in the full year 2021. Similar to the performance of the ordinary share, the preference share also increased by around 31% by the end of May 2021, before a consolidation phase lasting several

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SIXT SHARE

months set in by mid-September. Subsequently, the share price rose again to a new all-time high of EUR 96.30 on 8 November.

Based on year-end prices, the market capitalisation of Sixt SE amounted to EUR 6.16 billion – an increase of 57% compared to the value at the end of the previous year (EUR 3.93 billion, all figures based on XETRA closing prices). Measured by the respective year-end prices of the ordinary and preference shares in 2021, the total stock market value of the company at its peak was EUR 6.76 billion.

Due to the above-average share price performance, the Sixt ordinary share was promoted from the SDAX selection index to the MDAX with effect from 21 March 2022.

Shareholder structure as at 31 December 2021

Shareholder structure virtually unchanged

As in the previous year, 58.3% of the voting ordinary shares, measured in terms of registered share capital, were held by Erich Sixt Vermögensverwaltung GmbH at the end of 2021. Its shares are held directly and indirectly in full by the Sixt family.

Sixt SE publishes voting rights notifications on its website at ir.sixt.eu in the "News" section. The company did not receive any such notifications in the reporting year.

Dividend policy

Due to the significant impact of the global coronavirus pandemic on business development, the Sixt Group has not distributed a dividend for ordinary shares and only the statutory minimum dividend of EUR 0.05 for the preference shares for financial years 2019 and 2020 – in total EUR 828,812 in each case. Based on the respective year-end share prices for 2020, the dividend yield came to 0% per ordinary share (2019: 0%) and 0.1% per preference share (2019: 0.1%).

Due to the pleasant development of the business and results in 2021, the Management Board will, subject to the approval of the Supervisory Board, propose a dividend for the financial year 2021 of EUR 3.70 per ordinary share and EUR 3.72 per preference share to the Annual General Meeting 2022. Hence Sixt would thus resume the dividend payment that was suspended due to COVID-19. The proposal would amount to an overall dividend payment of EUR 174 million, equivalent to 55.6% of consolidated profit after minority interests. Based on the year-end share prices in 2021 the calculated dividend yields are 2.4% per ordinary shares and 4.3% per preference share.

Sixt SE continues to adhere to the principle of allowing shareholders to participate in the company's success in an appropriate manner through a dividend. The amount of the dividend is determined by the Group's earnings performance and future requirements for the equity base.

Sixt share information
Share classes	No-par value voting ordinary bearer shares (WKN: 723132, ISIN: DE0007231326)
	No-par value non-voting preference bearer shares (WKN: 723133, ISIN: DE0007231334)
	No-par value voting ordinary registered shares (WKN: A1K065, ISIN: DE000A1K0656)
Stock exchanges	Xetra, Frankfurt am Main, Munich, Stuttgart, Hanover, Düsseldorf, Hamburg, Berlin
Key indices	SDAX (weighting of ordinary shares: 2.89%)
	CDAX (weighting of ordinary shares: 0.13%, weighting of preference shares: 0.10%)
	Prime All Share (weighting of ordinary shares: 0.11%, weighting of preference shares: 0.08%)
Trading segment	Prime Standard
Designated sponsors	Stifel Europe Bank AG, M.M. Warburg & Co. KGaA

Sixt SE Annual Report 2021

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SIXT SHARE

	2021	2020
Earnings per share – basic (in EUR)
Ordinary share	6.66	-0.73
Preference share	6.68	-0.68
Dividend (in EUR)
Ordinary share	3.701	-
Preference share	3.721	0.05
Number of shares (as at 31 Dec.)	46,943,358	46,943,358
Ordinary share	30,367,112	30,367,112
Preference share	16,576,246	16,576,246

1 Proposal to the Annual General Meeting
2 All prices refer to Xetra closing prices
3 Based on Xetra year-end closing price
4 Based on ordinary and preference shares

	2021	2020
High (in EUR)2
Ordinary share	170.00	100.70
Preference share	96.30	67.60
Low (in EUR)2
Ordinary share	95.50	35.28
Preference share	55.06	27.15
Year-end price (in EUR)2
Ordinary share	155.60	98.20
Preference share	86.80	57.40
Dividend yield (in %)3
Ordinary share	2.4	-
Preference share	4.3	0.1
Market capitalisation (in EUR billion)2,4
as at 31 Dec.	6.16	3.93

Dialogue with the capital market intensified

As a listed company, Sixt has always attached great importance to an ongoing and intensive dialogue with the capital market. Sixt SE is listed in the Prime Standard of the German Stock Exchange and is therefore subject to extensive transparency and publicity requirements.

In the reporting year 2021, in addition to the great need for information on the effects of the ongoing coronavirus pandemic on the business development of the Group, there was lively interest among investors, analysts and financial media in the further steps to advance digitalisation and internationalisation as well as the strategic and tactical handling of the vehicle shortage that became increasingly apparent during the year.

— Sixt SE Annual Report 2021

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SIXT SHARE

As part of its investor relations work, the company held numerous one-on-one meetings with investors and analysts and presented itself on roadshows and international conferences. For the first time, an investor presentation was also published for each reporting quarter at ir.sixt.eu under "Financial Publications", which included the current business environment as well as a detailed analysis of the key data for the quarter. Sustainability aspects were another focus of capital market communication. In that context it was announced that the Group will expand its sustainable mobility offering with $\mathrm{CO}_{2}$-saving fully electric vehicles and hybrid models. In addition, there was a considerable need for communication at the end of the third quarter regarding the first-time blockchain-based refinancing of two borrower's note loans.

As in previous years, Sixt used investor conferences with domestic and foreign investors to communicate the Group's strategy and business development. The events, which were mainly held via video conferencing due to restrictions, met with great interest from investors on both sides of the Atlantic.

The Management Board also used the publication of the 2020 annual results and 2021 quarterly reports to provide financial and business journalists with timely information on the current development of the Group. In addition, conference calls were held, which are traditionally a fixed component of communication with relevant business media and news agencies.

The Group's development as well as the performance of Sixt shares and issued bonds are followed with undiminished attention by renowned financial and research institutes. The annual analysts' conference took place virtually as a video conference in 2021. In the reporting year, Sixt was regularly covered by Baader Bank, Berenberg Bank, Commerzbank (until August 2021), Deutsche Bank (initiation of coverage in March 2021), DZ Bank, Hauck Aufhäuser, Jefferies, Metzler, M.M. Warburg, Oddo BHF, Stifel Europe (initiation of coverage in October 2021) and UBS (until January 2021).

The average price target for the Sixt ordinary share stated in the studies was EUR 166.00 as at 31 December of the reporting year (end of 2020: EUR 97.00).

Sixt SE Annual Report 2021 — 25

26 — Sixt SE Annual Report 2021

D

COMBINED MANAGEMENT REPORT

B.1 028 PRINCIPLES OF THE GROUP

028 Business model of the Group
1.1 028 Group structure and management
1.2 028 Group activities and range of services
029 Operating business
2.1 029 Market position and positioning
2.2 030 Range of services
032 Significant external influencing factors
032 Management of the company
033 Research and development

B.2 034 ECONOMIC REPORT

034 General economic conditions
035 Overview of the Group's business performance and comparison with the previous year's forecast
035 Significant developments and measures in the reporting year
037 Revenue development
4.1 037 Development in the Group
4.2 037 Revenue breakdowns by regions
4.3 038 Earnings development
4.4 040 Development of the segments
040 Appropriation of profit
040 Net assets
041 Financial position
7.1 041 Financial management and financial instruments
7.2 043 Equity
7.3 043 Liabilities
043 Liquidity position
044 Investments

B.3 045 HUMAN RESOURCES REPORT

B.4 050 DISCLOSURES IN ACCORDANCE WITH SECTIONS 289A AND 315A HGB

B.5 054 FORECAST REPORT

054 General economic conditions
054 Sector developments
055 Expected future development
057 Expected development of the earnings situation in 2022

B.6 059 REPORT ON RISKS AND OPPORTUNITIES

059 Internal control and risk management organisation

1.1 059 Risk management system
1.2 059 Risk assessment
1.3 060 Internal control and risk management system for (Group) accounting (disclosures in accordance with sections 289 (4) and 315 (4) HGB)

060 Risk situation

2.1 060 General external risks (economic, social, regulatory and environmental risks)
2.2 062 Specific risks of the mobility industry
2.3 063 Financial risks
2.4 064 Investment risks and trademark rights
2.5 064 Strategic risks
2.6 065 Operational risks
2.7 066 Risks related to the coronavirus pandemic
2.8 067 Risks related to the war in Ukraine
3. 067 Management Board's assessment of the overall risk profile
4. 067 Opportunities report
4.1 068 Market opportunities

4.2 068 Competitive opportunities
4.3 070 Opportunities from innovation

B.7 073 COMBINED NON-FINANCIAL GROUP DECLARATION PURSUANT TO SECTIONS 315B AND C IN CONJUNCTION WITH 289B TO E OF THE HGB

073 Sustainability at Sixt
1.1 073 Entrepreneurial self-image
1.2 073 Principles of reporting
074 Basis for acting sustainably
2.1 074 Materiality
2.2 077 Strategy and management approach
077 Material fields of action
3.1 078 Shared mobility
3.2 080 Greenhouse gas emissions & air quality
3.3 080 Resource conservation
3.4 082 Customer satisfaction
3.5 082 IT security and data protection
3.6 083 Social engagement
3.7 084 Employee matters
3.8 086 Corporate governance, compliance & transparency
089 EU taxonomy

B.8 092 DEPENDENT COMPANY REPORT

B.9 092 CORPORATE GOVERNANCE DECLARATION IN ACCORDANCE WITH SECTIONS 289F AND 315D HGB

B.10 100 ADDITIONAL INFORMATION FOR SIXT SE PURSUANT TO HGB

Sixt SE Annual Report 2021 — 27

COMBINED MANAGEMENT REPORT PRINCIPLES OF THE GROUP

B COMBINED MANAGEMENT REPORT

B.1 PRINCIPLES OF THE GROUP

1. BUSINESS MODEL OF THE GROUP

1.1 GROUP STRUCTURE AND MANAGEMENT

Sixt SE, with its registered office in Pullach, Germany, is a listed European stock corporation (Societas Europaea) and serves as the parent and holding company of Sixt Group. Sixt SE performs key management and administrative tasks and is responsible for the strategic and financial management of Sixt Group. It also performs important financing functions for the Group.

Since the discontinued former Leasing business unit, which consisted of a fully consolidated share of 41.9% in SIXT Leasing SE, was already sold on 15 July 2020, the figures and results of this unit are no longer taken into account in financial year 2021.

The operating business of Sixt Group is managed entirely by legally independent subsidiaries in Germany and abroad.

The Management Board of Sixt SE manages the company on its own responsibility. The Supervisory Board of Sixt SE appoints, monitors and advises the Management Board and is directly involved in decisions of fundamental importance to the company and the Group.

An overview of the companies included in the Consolidated Financial Statements as well as the other shareholdings of Sixt Group, which are of minor economic importance in their entirety, can be found in the Notes to the Consolidated Financial Statements under "Consolidation." This report summarises the Management Reports of the Group and Sixt SE in accordance with Section 315 (5) of the German Commercial Code (HGB), hereinafter also referred to as Combined Management Report or Management Report.

1.2 GROUP ACTIVITIES AND RANGE OF SERVICES

Sixt Group is a mobility service provider that operates in Europe and the US. Other regions of the world are covered by franchisees and cooperation partners operating under the Sixt brand name. Sixt has been pursuing a focused premium strategy for many years. This is based on the commitment to offering business and private customers high-quality solutions for their respective mobility needs that are characterised by the most flexible processes and ease of use. The high share of vehicles from renowned manufacturer brands in the vehicle fleet is also an elementary component of this strategy. In this regard, Sixt views itself as a premium mobility service provider and sees this as an important unique selling point in competing globally.

Sixt aspires to be the innovation leader in the mobility industry. The technology and mobility platform ONE launched in 2019 plays a major role here. The basis for this is the end-to-end digitalisation of the entire product portfolio (via the SIXT App) as well as all sales channels and operational business processes. Via the SIXT App, users have access to the products SIXT rent, SIXT truck, SIXT share, SIXT ride and, since 2020, also to the car subscription offer SIXT+. In line with the platform strategy and the active shaping of the mobility ecosystem, customers can also access products and services from third-party providers via the SIXT App, such as the electric scooter provider TIER and the US ride service provider Lyft. By integrating digital car and commercial vehicle rental, car sharing, car subscriptions as well as arranging transfer services, customers have access to over 240,000 vehicles and mobility offers from more than 2,500 partners with more than 5 million drivers in over 400 cities in 50 countries worldwide via the SIXT App.

Sixt's digitalisation strategy is based on changing customer preferences and demands for mobility. In addition, it takes a change in usage behaviour in the online and mobile sector into account, which, in turn, is the result of technological development. Sixt offers its customers lean, flexible and transparent rental processes. By the end of 2021, around 73% (end of 2020: 72%) of reservations in the area of mobility were made via the company's online and mobile channels.

Furthermore, Sixt uses digital channels such as the Group's websites and social media accounts to engage in a constant dialogue with its customers and the general public. In addition, regular and continuous marketing activities are managed via these channels. In order to promptly identify trends and record data and experience, the company monitors the acceptance of its new platforms and applications at an early stage.

Sixt SE Annual Report 2021

Operating Business

Market Position and Positioning

The operating business has been segmented by region since financial year 2020. A distinction is made between the reporting segments Germany, Europe and North America.

International expansion was continued again in financial year 2021 so that the Sixt brand is now present nearly worldwide. The global positioning is divided into own country organisations (corporate countries) and cooperation with franchisees and partners (franchise countries). These partners are already established in their respective markets. Honduras, Azerbaijan and Australia were introduced as new franchise markets in financial year 2021. As at 31 December 2021, Sixt was represented by franchisees in a total of around 100 markets.

Sixt is present with its own subsidiaries in the European core countries of Austria, Belgium, France, Germany, Italy, Luxembourg, Monaco, the Netherlands, Spain, Switzerland and the UK, thus covering a large part of the European market. In addition, Sixt is active in the US rental market with subsidiaries.

Segment Germany

Based on its own estimates and Euromonitor data, Sixt was the market leader in Germany with a market share of around 41% and a market volume of EUR 2.0 billion in 2021, according to Euromonitor, well ahead of competitors. One focus of Sixt's business in Germany has traditionally been on business and corporate customers, together with a strong network of stations at German airports. Sixt operated at least one station at all major German airports as early as 1977. In financial year 2021, the company was represented at 29 airports. The share of private customers and tourists has increased in recent years, however. At the end of 2021, Sixt had a nationwide network of 418 stations in Germany (previous year: 471 stations).

Segment Europe

Sixt has been steadily expanding its presence in Europe since the mid-1990s and focuses on the leading countries in the car rental market. France and Spain are the largest markets. As opposed to Germany, private customers and tourists play a more important role for Sixt in the segment Europe. Here, the good market position in popular holiday regions like Spain, France and Italy is paying off. According to Sixt's estimates and based on Euromonitor data, the market share in Western European corporate countries is around 18% overall. According to Euromonitor, the market size of the corporate countries in Europe (excluding Germany) amounted to EUR 4.9 billion in 2021. The number of stations at the end of 2021 totalled 448 (previous year: 435 stations).

Segment North America

The world's largest car rental market, the US, with an estimated total volume of USD 26.2 billion according to Euromonitor, already represents the second largest single market for Sixt after Germany in terms of fleet size and revenue generated. Within only a few years, Sixt managed to establish itself as the fourth largest vendor, and in some US locations the Sixt brand was able to achieve even better market positions, such as market leadership at Miami Airport for several months in a row in the past financial year. As in other target markets, Sixt is also successful on the other side of the Atlantic with its strategy of providing its customers with both premium products and convincing service, and has achieved a differentiated positioning in the market. This is accompanied by an increase in brand awareness and customer satisfaction overseas: at the beginning of October, Sixt was presented with the Readers' Choice Award by the renowned travel magazine Condé Nast Traveler as a Top 3 car rental company in the US. Compared to its original focus on European tourists, Sixt has managed to grow in recent years mainly thanks to a higher share of American private and business customers. Similar to Europe, Sixt also relies in the US on a strong presence at the most important airports and is already represented at 26 of the top 30 US airports by the end of 2021. According to the company's estimates, the top 30 airports in the US account for around one third of the total market volume.

Source

Euromonitor International, Travel 2022, January 2022

With 98 stations at the end of 2021, this number was only slightly below the value at the end of 2020 (100 stations).

In financial year 2021, 50% (previous year: 39%) of rental revenue was generated at airport stations.

The Group's target groups include private customers/tourists and business/corporate customers. Sixt Group's revenue is mainly generated through the Business to Customer (B2C), Business to Business (B2B) and Business to Partner (B2P) sales channels. While B2B refers to rental business with business/corporate customers, rental business with private customers/tourists falls under B2C. The B2P sales approach also targets private/end customers, however, unlike B2C, customers are not acquired directly (e.g. via the Sixt website) but rather via an intermediary partner. The B2C and B2P sales channels account for a total of 66% (previous year: 57%), the remaining 34%

COMBINED MANAGEMENT REPORT

PRINCIPLES OF THE GROUP

(previous year: $43\%$ ) are accounted for by B2B and other. The accident replacement business, which has been reported separately, continues to be of secondary importance to Sixt and is assigned to the B2B sales channel.

The company continues to pursue its dedicated premium approach, which ensures the high quality of the vehicle fleet and includes customer-oriented service. Sixt therefore traditionally offers its customers a large number of high-quality equipped vehicles from renowned manufacturers. In 2021, around $57\%$ of the fleet in the Sixt corporate countries consisted of vehicles from the premium brands Audi, BMW and Mercedes-Benz, compared to $55\%$ the previous year.

The company focuses on comprehensive and modern equipment for its vehicle fleet in terms of driving comfort and safety. This includes functionalities such as voice control, assistance systems and integrated information systems, for example.

A significant shortage of vehicles in 2021 was caused by supply bottlenecks due to the shortage of semiconductors. Nevertheless, the Group's average vehicle stock in Germany and abroad (excluding franchisees) was increased to 125,300 vehicles again in financial year 2021 (previous year: 113,800). Besides the 167,000 vehicles that were added to the rental fleet, only slightly less than in the previous year $(-5\%)$ , extensions of the holding periods had a positive impact. This was Sixt's response to the significant recovery and normalisation of the market in the reporting year, which had been strongly characterised by a corona-related decline in demand the previous year. Including the vehicles of franchisees and cooperation partners, Sixt's global vehicle fleet consisted of an average of 242,000 vehicles in 2021 following 205,400 vehicles in 2020.

Sixt is represented by franchise and cooperation partners outside the European and American corporate countries. Thanks to this dual orientation with its own companies and franchisees, the Sixt brand was present in more than 100 countries in 2021, virtually unchanged from the previous year.

Despite advancing digitalisation, which makes it possible for customers to rent a vehicle without making a prior visit to a rental station and saves costs, the close-knit global network of 2,180 stations at the end of 2021 (including franchise countries) remains the basis of the operating business. The company had 2,067 rental stations at the end of the previous financial year. Virtual stations are also available to customers, where they can rent and pick up vehicles at frequented locations such as shopping centres or car parks simply by using their smartphone and the SIXT App.

2.2 RANGE OF SERVICES

The Group's product portfolio includes SIXT rent (car rental), SIXT truck (commercial vehicle rental), SIXT share (car sharing), SIXT+ (car subscriptions) and SIXT ride (transfer services). All products are linked via the SIXT App and the integrated mobility platform ONE launched in 2019.

SIXT rent: SIXT rent bundles the Group's activities in the area of traditional car rental and enables a completely digital rental process via the SIXT App. At selected rental stations in Europe and the US, especially airports, customers are able to select their vehicle until shortly before the rental period begins, head straight to the car park without having to go to the rental counter. They can then open the car directly with the app. The digital service will gradually be extended to other stations at airports and in urban areas.

SIXT rent offers holiday travellers a wide range of international holiday rental cars. This is tailored to the respective mobility needs in the vacation regions. Customers are permitted to make an advance payment at the time of reservation so that only the required documents, such as their passports and driving licences, need to be presented when they pick up the vehicle at their holiday destination. The company is thus responding to the wish of many vacation travellers to both fix the terms of their rental in advance of their trip and to simplify and speed up the pick-up process at their destination.

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COMBINED MANAGEMENT REPORT PRINCIPLES OF THE GROUP

SIXT truck: In addition to the rental of cars, Sixt offers a wide selection of commercial vehicles from renowned manufacturers under the SIXT truck product, also known as Vans & Trucks. The products range from vans to trucks with a gross vehicle weight of up to twelve tonnes. These vehicles for special groups of customers are available for short or long-term rentals and thus cover a wide range of mobility requirements. Services such as accessories for moving as well as special equipment and fixtures round off the truck range. As of 31 December 2021, Sixt's corporate and franchise station network comprised more than 900 stations offering vans and trucks, of which more than 10 were Truck Competence Centres. Sixt Truck Competence Centres are designed to meet the increased needs of corporate and commercial customers.

SIXT share: With SIXT share, the company offers a flexible car sharing service that allows for a vehicle to be returned even outside of firmly defined business regions. This means the vehicle can be returned at any Sixt station in Germany. With the help of the new "Car Radar" function in the SIXT App, which was introduced in December 2021, SIXT share assists customers with finding and reserving vehicles. By cross-linking the vehicle fleets of SIXT rent and SIXT share, the company uses synergies within the Group, as the vehicles can be flexibly deployed as needed. This enables Sixt – unlike other car sharing companies – to offer its services not only in large cities and metropolitan areas, but also in smaller and medium-sized towns as well as surrounding communities. The bundling of the vehicle fleets also offers Sixt customers the advantage of a larger selection of vehicle brands and types. With the integrated offering and thanks to the networking of both product areas, the usage periods can also be flexibly adapted to the actual needs of the users from a few minutes to several days, with the most favourable price being offered in each case. Following the launch of SIXT share in Berlin, Hamburg and Munich in 2019, the company expanded abroad in mid-2020 by entering the market in the Netherlands (Amsterdam, Rotterdam and The Hague). In the neighbouring country, SIXT share offers a pure e-fleet. A total of more than 2.5 million (2020: more than 2.3 million) drives were booked with SIXT share in financial year 2021.

SIXT+: With the launch of the car subscription offer SIXT+ in June 2020, Sixt expanded the product offering on its mobility platform ONE. SIXT+ is the solution for customers who do not want to be tied down for years by buying or leasing. Unlike car sharing or short-term rentals, customers get their own car with SIXT+, which they can use just like a private vehicle for as long as they wish at fixed monthly rates. All costs for maintenance, protection, servicing and wear and tear are included. Since the end of November 2021, customers have also been able to suspend their car subscription for up to three months using the SIXT App if they will not need their vehicle for a longer period of time.

With the new product, Sixt underpins its claim to recognise and occupy mobility trends at an early stage. SIXT+ pays tribute to the changing mobility needs of the population, who prefer to use rather than possess cars. According to a survey, over 20% of consumers in the US, China and Germany are interested or even extremely interested in car subscription models. Sixt thus enables more people to be mobile for whom a classic car purchase is not an option for various reasons. Due to the longer contract terms, Sixt can better plan its revenues and cash flows compared to short-term rentals.

Source
Arthur D. Little: The Future of Automotive Mobility, February 2021

Following its launch in Germany in mid-2020, SIXT+ rapidly expanded into other markets and was available in all Sixt corporate countries by the end of 2021.

SIXT ride: SIXT ride is an integrated mobility service available since 2012 that is primarily based on the brokering of driving and transfer services (ride hailing or taxi). The company cooperates with more than 2,500 partners and more than 5 million drivers worldwide. Customers can be picked up in more than 400 cities in 50 countries worldwide and book transfers in advance. The offer is available not only in major cities, but also includes small towns and rural areas through cooperation with local partners. In order to be able to provide this comprehensive and integrated offer, the company works together with renowned international mobility partners. Besides taxi centres in all major German cities, these include established ride-hailing networks such as the ride service provider Lyft in the US, Cabify in Spain and Addison Lee in the UK.

For corporate customers, SIXT ride offers the advantage of a simple and uniform billing system so that driving services can be included in business travellers' planning and booking and be billed transparently. Thus, taxis can be booked directly while planning travel via interfaces to company travel portals. Due to the bookability in the Amadeus transfer hub, travel agencies also have access to SIXT ride.

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In addition to SIXT rent, SIXT truck, SIXT share, SIXT+ and SIXT ride, the Group offers yet other products that meet the special needs of different groups of customers. These include mobility concepts such as SIXT long-term flex and SIXT unlimited.

SIXT long-term flex: With SIXT long-term flex, employees do not have to commit to a company car for the long term but can switch between vehicle classes and drive types at any time within the contract term or pause the use as they wish. This allows them to optimally adapt their mobility to their circumstances. SIXT long-term flex is thus a product for business customers who want to make their corporate mobility more flexible and sustainable. In addition, Sixt long-term flex offers significant cost-saving potential, as it is only charged according to actual use (pay as you use). Only the basic monthly fee is charged during the 12-month contract period. Everything else remains completely flexible: for instance, inclusive kilometres, which can be booked in different packages depending on use, are not tied to a monthly fee, but can be used individually per employee over the entire term of the contract.

SIXT unlimited: The rental car flat rate offer from Sixt combines the advantages of a company car that is always available with the flexible use of a rental vehicle. This is based on a flat monthly rate for the option of renting a specific vehicle class. When travelling in European Sixt corporate countries, for example, it is possible to hand in the vehicle at the departure airport and pick up an equivalent vehicle at the destination airport. This eliminates additional costs for one's own vehicle or taxi. SIXT unlimited has been specially developed for frequent travellers who particularly appreciate the fast handling of the rental process as well as cost benefits.

SIXT Sports & Luxury Cars: In this product area, Sixt offers its customers in select countries and regions a wide range of exclusive vehicles from virtually all categories, such as convertibles, sedans, coupés or estates.

3. SIGNIFICANT EXTERNAL INFLUENCING FACTORS

Sixt Group operates internationally and has a listed parent company. Thus, the business of the Group companies is under the influence of a large number of different legal systems and regulations. These include regulations in the areas of road traffic, environmental protection, customer and data protection and public order, as well as tax and insurance laws and regulations for the financial and capital markets.

Economically, the Sixt Group is influenced by the general macroeconomic conditions, which determine in particular the willingness of business travellers to spend, the consumption of private individuals and the willingness of companies to invest. These and other influencing factors, which represent both risks (including the progressing corona virus pandemic) and opportunities (including the growing popularity of Shared Mobility) for the Sixt Group, are explained in detail in the Report on risks and opportunities.

4. MANAGEMENT OF THE COMPANY

The long-term success of Sixt Group is measured using predefined financial performance indicators.

The following financial performance indicators are of particular importance at the Group level:

Revenue
Earnings before taxes (EBT)

In addition, the return on revenue (EBT+revenue) and the equity ratio (equity+total assets) serve as performance indicators.

The relevant performance indicator for the operating segments is Corporate EBITDA, i.e., earnings before interest, taxes, depreciation and amortisation (EBITDA), but with additional consideration of depreciation on rental vehicles and the attributable interest result.

In previous years, in addition to the Group revenue, the so-called operating revenue was also used as a performance indicator. This is the revenue from rental business including other revenue from the rental business. After the sale of the share in Sixt Leasing SE and the discontinuation of the Leasing business, there is no longer a need to distinguish between Group revenue and operating revenue, as the difference mainly relates to other revenue from holding company activities and real estate leasing and is negligible. Due to the only limited additional informative value, the indicator has therefore been dispensed with.

Sixt Group aims to achieve the following returns and ratios in the long term and thus on a sustainable basis:

A return on revenue of at least 10%.
A Group equity ratio of at least 20%.

32 — Sixt SE Annual Report 2021

COMBINED MANAGEMENT REPORT PRINCIPLES OF THE GROUP

5. RESEARCH AND DEVELOPMENT

As a global premium service provider and innovation leader in the mobility sector, Sixt pursues a consistent digitalisation strategy that encompasses both its product portfolio and sales channels as well as its operational business processes. In doing so, Sixt uses and drives forward the latest technological developments and digital services in order to be able to offer its customers fast, flexible and convenient solutions. The company attaches great importance to its own technological expertise and development activities for its business success. Sixt has organised its research and development activities in the SIXT TECH unit, which is divided into product divisions and enabling divisions. In 2021, on average more than 700 employees were working for the SIXT TECH unit, mainly in the development centres in Germany, India and Ukraine.

Product Divisions: The Product Divisions pursue the goal of developing and optimising mobility solutions. In addition, the focus is on increasing internal efficiency.

Enabling Divisions: The Enabling Divisions are responsible for digital security, the internal IT infrastructure, provision of the cloud platform ONE and other technical support for the specialist departments. In addition, they pursue the goal of constantly keeping the IT infrastructure in the branches as well as at Group headquarters in Pullach up to date with the latest technology.

The goal is the new and further development of all mobility products and the associated fundamental and continuous modernisation of the company's own IT infrastructure towards a 100% cloud-based technology. The company uses an agile project management and development methodology based on SCRUM.

The main activities in the Product Divisions in 2021 were:

Consumer Products: The Consumer Products Division manages the range of products aimed at customers, particularly via the Sixt website and the SIXT App. Extensive tests were carried out in the reporting year to develop a completely renewed website. There continues to be a strong focus on customer self-service options in order to make adjustments to the rental quickly and flexibly on one's own.

Pricing and Yield: The Pricing and Yield Division deals with pricing and fleet management. In addition to the continuous optimisation of pricing algorithms, the division also works on new, data-driven approaches to fleet planning.

Sales: The Sales Division focuses on expanding and optimising the digital offering for business and corporate customers (B2B). Its tasks include making the functionalities from the private customer business (B2C) and partner business (B2P) available for B2B as well and digitalising the sales process end-to-end.

Mobility Operations: The Mobility Operations Division bundles the mobility services of Sixt Group. For example, the internal tools for check-in and check-out for vehicle rental and return, which have been in use since 2020, were further developed in the reporting year using cloud-based software.

Fleet: The Fleet Division modernises all processes to optimise fleet utilisation and data provision.

Finance: The Finance Division ensures, among other things, the connection and consolidation of modern payment methods across all Sixt products, flexible and real-time processing, especially of receivables and transparent commission processing.

Ride: The Ride Division provides the platform for taxis and chauffeur services and is constantly developing it further, by integrating Google Maps, for example.

Share: Sixt Share is preparing further international locations and has launched new features for product improvement such as Car Radar and extended payment options. In addition, networking of the Share offers into the platforms of other providers (MVG, Hamburg Hochbahn) and vice versa (Tier, Nextbike) is being undertaken.

Vans & Trucks: The Vans & Trucks Division creates customised applications, for example the new development of an app for business customers, which offers them an extended service for claims handling, among other benefits.

The total costs of the areas in Sixt Group that are significantly involved in development activities amounted to EUR 29.0 million in the financial year (previous year: EUR 27.6 million).

Development costs of EUR 11.4 million (previous year: EUR 8.2 million) were capitalised for current and future software solutions in 2021.

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COMBINED MANAGEMENT REPORT ECONOMIC REPORT

B.2 ECONOMIC REPORT

Unless stated otherwise, the following key figures include the operating Mobility business as well as the other continuing operations that are not allocated to the Mobility business. The previous year's earnings after taxes of the discontinued Leasing business unit, which was sold in July 2020, is shown separately in the Income Statement in accordance with IFRS 5. The previous year's figures have been adjusted for comparison purposes where necessary.

Due to rounding, it is possible that individual figures in this Combined Management Report may not add up exactly to the totals shown. For the same reason, percentages presented may not accurately reflect the absolute figures to which they relate.

The economic growth percentages shown below that were published by the International Monetary Fund (IMF) are preliminary estimates for 2021 and forecasts for subsequent years.

1. GENERAL ECONOMIC CONDITIONS

As part of Sixt's continuous internationalisation strategy, the focus of the Group's activities is shifting further to the European corporate countries as well as to the most important foreign market, the US. Therefore, the investment activity of the economy, the consumer behaviour of private customers and the willingness of corporate customers to spend in these regions have increased weight for the development of the entire Sixt Group's business.

Despite the increasing recovery from the corona crisis, economic development in 2021 was again marked by the effects of the pandemic. The consequences for the travel and tourism industry continued to be particularly severe. By European comparison, German air traffic was hit particularly hard last year, for example. According to an evaluation by the aviation safety organisation Eurocontrol, the number of flights in Germany, with a total of 1.0 million take-offs and landings, only reached around half the level of the pre-crisis year 2019. Only the UK experienced a more severe slump, with flight movements declining by nearly two thirds.

In addition to the continuing pandemic-related constraints, economic growth was also affected by the multiple bottlenecks in global value chains. Besides supply-side shortages, the global economic recovery was also accompanied by a rise in commodity and energy prices, resulting in a significant increase in consumer price inflation.

Nevertheless, according to the IMF, global economic output rose by 5.9% in 2021 as a whole, following a 3.1% decline in the previous year. The main drivers of the significant upturn in 2021 were strong increases in consumer spending and a revival in investment supported by extensive stimulus packages and extremely lax monetary policy, whereby trade in goods even exceeded pre-crisis levels.

The US recorded a 5.6% increase in economic output, after contraction of 3.4% in 2020. After the unemployment rate in the US had risen to 6.7% in the previous year as the pandemic-related crisis worsened, it fell to below 4.0% again in December 2021, thus returning to pre-crisis levels for the first time. The economic recovery in the US is largely due to strengthening domestic demand. Rapid growth in domestic demand was met with increasing supply-side constraints due to global supply chain disruptions and logistics backlogs, resulting in price increases.

According to the IMF, the EU also experienced a significant upturn of 5.2% in the reporting period, following a decline of 6.4% in the previous year. The EU economy resumed its growth path in 2021, accompanied by a gradual easing of the corona containment measures, the continuation of low interest rate policies and a strong rebound in key exporting countries, particularly China and the United States. In the meantime, economic activity in France, Italy and Spain, which were disproportionately affected by the measures to combat the corona pandemic in the previous year, showed growth rates of 4.9% to 6.7%. The German economy, on the other hand, suffered particularly badly from the protective measures associated with the pandemic as well as global supply problems. In addition, it is highly dependent on exports, especially the automotive industry. Thus, the German economy grew by only 2.7% in 2021, after the gross domestic product (GDP) had shrunk by 4.6% a year earlier due to the pandemic. According to the German Council of Economic Experts, GDP will return to the pre-crisis level from the fourth quarter of 2019 in the course of the first quarter of 2022. On the German labour market, the recovery continued until the end of the year, albeit with reduced momentum.

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Global growth momentum – especially in China, the US and the EU – already declined significantly again by the end of 2021, as the effects of monetary and fiscal stimulus gradually faded and major supply chain disruptions emerged. Rising inflationary pressures in many economies pose an additional risk to the recovery. In addition, the global economic recovery also faces effects of the Ukraine conflict, new waves of infections, ongoing challenges in the labour market and continued problems in supply chains. Following growth of 5.9% in 2021, the IMF expects global economic output to grow by only 4.4% in 2022 and 3.8% in 2023.

Sources

German Council of Economic Experts, Annual Report 2021/22, December 2021
United Nations (UN), World Economic Situation and Prospectus 2022, January 2022
Aviation Security Organisation Eurocontrol, Charting the European Aviation Recovery: 2021 COVID-19 impacts and 2022 outlook, January 2022
BMW, Press release 14 January 2022, The economic situation in Germany in December 2021
International Monetary Fund (IMF), World Economic Outlook Update January 2022
Bureau of Labor Statistics, U.S. Department of Labor, The Employment Situation – December 2021, Press Release 7 January 2022

2. OVERVIEW OF THE GROUP'S BUSINESS PERFORMANCE AND COMPARISON WITH THE PREVIOUS YEAR'S FORECAST

Despite the ongoing coronavirus pandemic, Sixt Group can look back on a very successful financial year 2021, in which consolidated earnings before taxes (EBT) significantly exceeded the pre-crisis level. In addition to the strategic investments in internationalisation and digitalisation, which are increasingly paying off, the main drivers for the extremely positive development included the increasing travel activities from the second quarter into the fall – especially in the European holiday countries and the US – as well as the persistently good market price level due to the scarcity of the available vehicle supply. In the past year, Sixt achieved consolidated revenues of EUR 2.28 billion (previous year: EUR 1.53 billion). Group EBT amounted to EUR 442.2 million (previous year: EUR -81.5 million from continuing operations).

After the Management Board of Sixt SE had not issued a forecast for the Group's business development for the full year 2021 in the first half of 2021 due to the still high pandemic-related uncertainties, Sixt SE published a forecast for the first time in July 2021 based on the figures for the first six months. In September 2021, this original forecast was raised significantly on the basis of the preliminary figures for August available at that time and the expectations for the coming months of 2021: The Management Board of Sixt SE then expected consolidated operating revenues of between EUR 2.00 billion and EUR 2.20 billion (previously: between

EUR 1.95 billion and EUR 2.10 billion) and earnings before taxes (EBT) for the Sixt Group in the range of between EUR 300 million and EUR 330 million (previously: between EUR 190 million and EUR 220 million). Based on the preliminary results for the third quarter, the booking volume in October and the respective updated forecast for the months through the end of the year, the forecast for the financial year was finally raised again on 20 October 2021: The Management Board of Sixt SE now expected consolidated operating revenues of between EUR 2.10 billion and EUR 2.30 billion for financial year 2021 (2020: EUR 1.52 billion). Earnings before taxes (EBT) of the Sixt Group for 2021 financial year were expected to be in the range between EUR 390 million and EUR 450 million (2020: EUR -81.5 million from continuing operations). These forecasts were met.

Group operating revenue increased by 49.3% in 2021 year-on-year to EUR 2.27 billion (previous year: EUR 1.52 billion). Foreign business was the main driver of this increase by posting growth of 82.0% to EUR 1.53 billion (previous year: EUR 840.8 million). An increase of 8.9% to EUR 739.6 million (previous year: EUR 679.5 million) was recorded in Germany.

In the reporting period, the Sixt Group reported a significant year-on-year increase in earnings before taxes to EUR 442.2 million (previous year: EUR -81.5 million from continuing operations). Compared to the pre-crisis year 2019, the increase was 44.1% (2019: EUR 308.2 million from continuing operations). The return on revenue in the reporting year was 19.4% compared to -5.3% in 2020.

The equity ratio of 38.6% reported as at 31 December 2021 continues to be significantly above the minimum target value of 20% and also above the value of 31.5% achieved in the previous year.

3. SIGNIFICANT DEVELOPMENTS AND MEASURES IN THE REPORTING YEAR

Stabilisation and diversification of the fleet: In the past financial year, Sixt successfully maintained its fleet at a high level despite the general lack of available vehicles. In particular, contract extensions and contracts with new manufacturers contributed to this. In addition, more vehicles without buy-back agreements were acquired, especially in the US. Thus, despite the adverse market environment on-balance rental assets at the end of December 2021 amounted to EUR 2.8 billion and were thus 29.1% above the level at the end of 2020.

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Consistent internationalisation and growth strategy

At the beginning of December 2021, Sixt entered into a strategic partnership with the National Roads & Motorists' Association, the largest automobile club in Australia, thus tapping into one of the largest car rental markets worldwide with a market volume of over one billion euros. Through this partnership, Sixt expanded its international franchise network by 160 stations and, in addition to a modern fleet of cars and trucks, also offers its customers one of the country's largest electric rental fleets with the launch in Australia.

The ten stations at major commercial airports that Sixt took over and realigned in 2020 have already made a noticeable contribution to growth in the US. All of these stations have been open since September 2021. Sixt continues to focus on airport stations with high market potential. For example, the Portland airport station was opened in November. Sixt was repeatedly the market leader at Miami Airport on a monthly basis, which underscores the gain in market share.

SIXTAINABILITY

Sustainability considerations are an important component of Sixt's company strategy. Sixt underscores this with the SIXTAINABILITY initiative it launched in the course of financial year 2021. In the long term, the Group intends to continuously develop its premium positioning and brand and expand its national and international presence. The focus is also on the further digitalisation of products and processes, the development of product innovations based on modern, environmentally friendly technologies and the medium-term development of a low-emission vehicle fleet. Detailed information on Sixt's sustainability measures and goals can be found in the Combined Non-Financial Declaration of the Group in this report.

The range of sustainable mobility at Sixt was also expanded in the past financial year through the integration of hybrid and fully electric vehicle models and the integration of e-mopeds.

New sales initiatives in the area of business customers

In the area of Corporate Sales, Sixt was able to further advance its internationalisation in the past financial year, particularly in the Vans & Trucks segment, in the replacement business and in sales to SMEs. As part of the further structural development in the individual countries, Sixt set up its own sales channels and hired the respective personnel, developed local pricing strategies and further digitalised its sales processes.

Financial flexibility and digital innovation in finance

In financial year 2021, the Sixt Group again had sufficient room for manoeuvre to finance its operating business, especially its vehicle fleet. Already in the first quarter of 2021, Sixt agreed a syndicated loan of EUR 750 million with renowned banks for this purpose. The new revolving credit line fully replaces the unused syndicated loan concluded at the beginning of May 2020 with the participation of Kreditanstalt für Wiederaufbau (KfW). In addition, at the beginning of the fourth quarter of 2021, Sixt SE placed two long-term borrower's note loans with a term of five years and a total volume of EUR 100 million, using blockchain technology for the first time as part of the issue.

Strategic partnerships

As early as 2022, it is planned for the Intel subsidiary Mobileye and Sixt to jointly offer an autonomous ride hailing service in Munich (including Munich Airport). Sixt will take over the provision, maintenance and operation of the fleet, which will initially comprise 25 vehicles and is expected to grow to up to 100 vehicles in the first three years. In the future, the self-driving cars can also be requested via the SIXT App.

In financial year 2021, not only were new partnerships concluded, existing ones were also deepened. Examples of this include the partnership with Google (since October 2021, the ride hailing offer of SIXT ride has now also been integrated into Google Maps in parts of foreign countries), the partnership with Lyft (since August 2021, e-scooters as well as e-mopeds can be booked in the SIXT App) or with Booking.com (since June 2021, the SIXT ride services can be booked in advance and on demand via the travel platform).

Major marketing activities

In the reporting year, Sixt invested primarily in marketing activities in Germany as well as in France and the US.

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Several successful marketing campaigns were carried out in Germany, including a holiday campaign that was played out across several TV channels. Sixt again reacted quickly to current topics with different motifs that led to great media attention and reached several million people in the social media in some cases as well as triggering several tens of thousands of interactions. In addition, Sixt provided free vans for aid organisations in July under the motto "Help for the helpers," with which people affected by the flood disaster in the west and south of Germany could be helped more quickly.

Various marketing activities were also carried out successfully abroad in financial year 2021. Examples include a new SIXT+ campaign in France in the first half of the year, which was broadcast on several TV channels, and an online campaign in several metropolitan regions in the US.

In the reporting year, Sixt further expanded its typical airport advertising at important locations and advertises with eye-catching advertising spaces at international airports.

4. REVENUE DEVELOPMENT

4.1 DEVELOPMENT IN THE GROUP

In the reporting year, consolidated revenue increased by 49.0% to EUR 2.28 billion (2020: EUR 1.53 billion) due to the significant recovery in demand compared to the previous year, which was considerably more affected by the coronavirus pandemic, as well as the strongly increased market price level, especially in other European countries and the USA.

Breakdown of consolidated revenue	2021		2020
	in EUR million	in %	in EUR million	in %
Rental revenue	2,097.4	91.9	1,362.4	88.9
Other revenue from rental business	172.4	7.6	157.8	10.3
Other revenue	12.6	0.6	11.9	0.8
Total	2,282.4	100.0	1,532.1	100.0

4.2 REVENUE BREAKDOWNS BY REGIONS

In Germany, consolidated revenue for 2021 was EUR 749.6 million, which corresponds to an increase of 9.0% compared to prior year (EUR 687.9 million). At EUR 656.0 million, rental revenue was 11.0% above previous year's level (EUR 591.0 million). Other revenue from rental business decreased by 5.5% and reached EUR 83.6 million (2020: EUR 88.5 million).

Abroad, the recovery of consolidated revenue in 2021 was even more dynamic. An increase of 81.6% to EUR 1.53 billion was recorded compared to the previous year (2020: EUR 0.84 billion).

Rental revenue abroad rose by 86.8% to EUR 1.44 billion (2020: 0.77 billion). This development was driven in particular by increasing travel activities, especially in Europe and the USA, which remained at a high level longer than usual into the autumn. At EUR 88.8 million, other revenue from rental business was also significantly above the previous year's level (EUR 69.3 million; +28.2%).

Overall, the share of foreign revenue also increased again in 2021 and reached 67.2% (2019: 55.1%); the share of consolidated revenue in Germany decreased to 32.8% (2020: 44.9%).

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ECONOMIC REPORT

4.3 EARNINGS DEVELOPMENT

Consolidated income statement (condensed)
			Change	Change
in EUR million	2021	2020	in total	in %
Consolidated revenue	2,282.4	1,532.1	750.4	49.0
Other operating income	157.3	181.8	-24.5	-13.5
Fleet expenses	506.5	429.3	77.2	18.0
Personnel expenses	405.3	339.3	66.0	19.5
Depreciation and amortisation expense including impairments	370.0	458.1	-88.0	-19.2
Other operating expenses	678.7	535.9	142.8	26.6
Earnings before net finance costs and taxes (EBIT)	479.2	-48.7	527.9	-1,083.8
Financial result	-37.0	-32.8	-4.2	12.7
Earnings before taxes (EBT)	442.2	-81.5	523.7	-642.2
Income tax expense	129.0	17.3	111.8	647.4
Result from continuing operations	313.2	-98.8	412.0	-416.9
Result from discontinued operations, net of taxes	0.0	100.8	-100.8	-100.0
Consolidated profit/loss	313.2	2.0	311.2	15,821.3
Earnings per share (in EUR)¹	6.67	-0.71	7.38	-1,041.9

¹ Basic, in 2021 based on 46.9 million shares (weighted), in 2020 based on 46.9 million shares (weighted)

Earnings reconciliation – Presentation of changes compared to the previous year

Other operating income declined by 13.5% to EUR 157.3 million (2020: EUR 181.8 million). While gains from currency translation decreased significantly (EUR 58.2 million; -42.7%), income from forwarding costs recorded an increase (EUR 42.2 million; +15.8%). Moreover, other operating income includes income from the reversal of provisions (EUR 6.2 million; +49.6%) as well as income from non-cash benefits (EUR 7.5 million; -9.6%). Gains from currency translation are offset by expenses from foreign currencies which are recognised under the other operating expenses.

The fleet expenses item comprises expenses for the rental fleet during the useful lives of the vehicles (for example fuel, transport, insurance, motor vehicle taxes, vehicle maintenance and repairs, vehicle preparation). Fleet expenses increased by 18.0% to

38 — Sixt SE Annual Report 2021

COMBINED MANAGEMENT REPORT ECONOMIC REPORT

EUR 506.5 million (2020: EUR 429.3 millio). Costs thereby rose on a broad basis.

Personnel expenses increased by 19.5% to EUR 405.3 million (2020: EUR 339.3 million) due to the resumption of recruitment and the subsequent rapid expansion of the workforce in the course of the reporting year, the discontinuation of short-time work and increased variable compensation as a participation in the company's success.

Depreciation and amortisation expense including impairments was with EUR 370.0 million 19.2% below the level of the previous year of EUR 458.1 million. Depreciation on rental vehicles decreased significantly in this context (EUR 238.4 million; -19.0%), particularly due to the favorable development of residual values. Depreciation of property and equipment (EUR 126.2 million; -15.3%), mainly resulting from the capitalisation of right of use assets according to IFRS 16, declined, too. Also amortisation of intangible assets recorded a significant decline (EUR 5.4 million; -62.8%), as the previous year included an impairment of goodwill.

Other operating expenses increased by 26.6% to EUR 678.7 million in the reporting year (2020: EUR 535.9 million). The rise is particularly due to increased provisions, increased risk provisioning for receivables and increased expenses for marketing and sales. Expenses from currency translation developed in the opposite direction and declined by 47.6% from EUR 112.4 million to EUR 58.8 million.

For 2021, Sixt Group shows earnings before net finance costs and taxes (EBIT) of EUR 479.2 million (2020: -48.7 million). The EBIT margin, based on consolidated revenue, stood at 21.0% (2020: -3.2).

The financial result decreased to EUR -37.0 million (2020: -32.8 million). The interest result came to EUR -37.1 million (2020: EUR -34.5 million), due to higher costs for securing liquidity in the longer term as well as lower interest income. Other net financial income amounted to EUR 0.1 million (2020: EUR 1.7 million).

Sixt recorded consolidated earnings before taxes (EBT) from continued operations of EUR 442.2 million (2020: EUR -81.5 million). The EBT margin – based on consolidated revenue – was 19.4% (2020: -5.3%).

Income tax expense amounted to EUR 129.0 million (2020: EUR 17.3 million). The tax rate, based on EBT, came to 29% (2020: -21%).

For the financial year 2021, the Sixt Group reports a consolidated profit of EUR 313.2 million (2020: 2.0 million). Minority interests amounted to EUR 3 thousand (2020: EUR 35.2 million), consolidated profit after taxes and minority interests came to EUR 313.1 million (2020: EUR -33.2 million).

Reconciliation EBT to Corporate EBITDA
in EUR million	2021	2020
Earnings before taxes (EBT)	442.2	-81.5
Depreciation and amortisation expense including impairments	370.0	458.1
Financial result	-37.0	-32.8
Earnings before interest, taxes, depreciation and amortisation (EBITDA)	849.2	409.4
Depreciation of rental vehicles	-238.4	-294.4
Fleet related interest result	-34.9	-32.5
Corporate EBITDA	575.9	82.5

The Corporate EBITDA, which is used for the assessment of the performance of the segments, increased from EUR 82.5 million to EUR 575.9 million. This industry-standard key figure is defined as earnings before taxes adjusted for non-fleet related depreciation and amortisation and non-fleet related interest as well as the other financial result. In contrast to the EBITDA, the Corporate EBITDA is thus reduced by fleet related expenses such as depreciation and interest.

Earnings per share (basic) for the reporting year amounted to EUR 6.67. In the previous year it came to EUR -0.71 per share.

Return indicators Sixt Group
in %	2021	2020
Return on equity (ratio of EBT to equity)	25.3	-5.8
Return on revenue (ratio of EBT to consolidated revenue)	19.4	-5.3

Sixt SE Annual Report 2021 — 39

COMBINED MANAGEMENT REPORT

ECONOMIC REPORT

4.4 DEVELOPMENT OF THE SEGMENTS

In line with the company's internal reporting structures, the business of the Sixt Group is segmented according to regional aspects. The segment report distinguishes between segments Germany, Europe (excluding Germany) and North America, which have all developed positively compared to the crisis year 2020. The profitability of the segments is represented by the industry-standard key figure Corporate EBITDA.

The share of Group revenue generated in the segment Germany amounted to EUR 739.6 million (2020: EUR 679.5 million) and increased more subdued compared to the other two segments, mainly due to business trips picking up again only now. Positive developments in the city stations and in long-term rentals, especially SIXT+, have a partially compensating effect. The Corporate EBITDA for the segment Germany came to EUR 177.6 million (2020: 48.7 million).

The share of Group revenue generated in the segment Europe totaled EUR 945.6 million (2020: 576.6 million). The business benefited from a long summer season in Europe and high demand well into autumn, particularly in holiday destinations such as France, Spain and Italy. The segment Europe recorded a Corporate EBITDA of EUR 233.3 million (2020: 78.9 million).

The segment North America contributed a share of EUR 584.6 million (2020: EUR 264.2 million) to the Group's revenue and recorded a Corporate EBITDA of EUR 163.6 million compared to EUR -52.0 million in the previous year. In the USA, demand already started to recover at the beginning of the second quarter, a few weeks earlier than in the other corporate countries, in line with vaccination progress. Both the demand for mobility and the market price level remained at a high level until the end of the year.

Revenue key figures Sixt Group			Change
in EUR million	2021	2020	in %
Segment Germany	739.6	679.5	8.9
Segment Europe	945.6	576.6	64.0
Segment North America	584.6	264.2	121.3
Other revenue	12.6	11.9	6.5
Consolidated revenue	2,282.4	1,532.1	49.0
Corporate EBITDA			Change
---	---	---	---
in EUR million	2021	2020	in %
Segment Germany	177.6	48.7	264.8
Segment Europe	233.3	78.9	195.6
Segment North America	163.6	-52.0	-414.6
Other	1.4	6.9	-79.7
Group total	575.9	82.5	598.2

The Other segment comprises all activities of the Sixt Group that cannot be allocated to the Mobility business, which do not account for a significant share of the Sixt Group's revenue and earnings and are therefore not reported separately.

5. APPROPRIATION OF PROFIT

Sixt SE prepares its Annual Financial Statements according to the provisions of the German Commercial Code (HGB) and the German Stock Corporation Act (AktG). For 2021, Sixt SE reports unappropriated profits of EUR 453.8 million (2020: EUR 378.5 million).

Subject to the consent of the Supervisory Board, the Management and Supervisory Board of Sixt SE propose that the Annual General Meeting 2022 distributes unappropriated profits as follows:

Payment of a dividend of EUR 3.70 per ordinary share
Payment of a dividend of EUR 3.72 per preference share
Carry-forward to new account EUR 279.8 million

The dividend proposal would result in a total dividend payment of EUR 174.0 million. The reason for the increased dividend is the pleasing business and earnings development in 2021.

6. NET ASSETS

As at the end of 2021, Sixt Group's total assets were with EUR 4.52 billion EUR 0.09 billion or 2.1% above the figure as at 31 December 2020 (EUR 4.43 billion). The increase in total assets is particularly due to the increase in the rental vehicles item. On the other hand, cash and bank balances declined significantly.

Non-current assets amounted to EUR 646.4 million (2020: 640.7 million; +0.9%). The largest item is property and equipment including the capitalised right of use assets, which increased

Sixt SE Annual Report 2021

COMBINED MANAGEMENT REPORT ECONOMIC REPORT

slightly by EUR 6.9 million or 1.3% to EUR 550.8 million (2020: EUR 544.0 million). Goodwill remained stable at EUR 18.4 million (2020: EUR 18.4 million). Intangible assets grew by EUR 8.1 million or 40.3% to EUR 28.2 million (2020: 20.1 million). Deferred tax assets decreased from EUR 43.6 million by 27.3% to EUR 31.7 million. Other receivables and assets increased by EUR 2.9 million to EUR 7.6 million (2020: 4.7 million; +61.4%).

Current assets rose in total by EUR 87.0 million to EUR 3.87 billion (2020: 3.79 billion; +2.3%). Rental assets accounted for EUR 2.85 billion, EUR 642.2 million or 29.1% more than compared to the figure as at 31 December 2020 (EUR 2.20 billion). Thus, the share of rental vehicles in current assets came to 73.5% (2020: 58.2%) and in total assets to 63.0% (2020: 49.8%).

Inventories contain mainly rental vehicles taken out of the fleet, petrol stocks as well as raw materials, consumables, and supplies. With EUR 27.1 million they registered a significant decline from EUR 54.3 million or 66.7% compared to prior year (EUR 81.3 million).

Trade receivables came to EUR 514.8 million, thus EUR 15.3 million or 2.9% slightly below prior year's figure of EUR 530.0 million due to reporting date effects.

Current other receivables and assets recorded a drop by EUR 12.4 million to EUR 186.0 million (2020: EUR 198.4 million; -6.3%). The item contains mainly delivery claims for vehicles, insurance claims and other tax receivables.

Income tax receivables increased from EUR 20.1 million by 14.2 million to EUR 34.3 million (+70.4%).

The Group's cash and bank balances amounted to EUR 265.8 million as at the reporting date after EUR 753.3 million in the previous year (-64.7%).

The "Sixt" brand name in particular is a significant asset that is not recognised in the balance sheet. The value of this asset can be affected, among other things, by advertising campaigns. However, advertising expenses cannot be unambiguously allocated to this asset. Advertising expenses for financial year 2021 amounted to 3.1% of consolidated revenue (2020: 3.2%).

Consolidated balance sheet (condensed)	2021	2020
Assets
in EUR million
Non-current assets
Property and equipment	550.8	544.0
Miscellaneous	95.6	96.8
Current assets
Rental vehicles	2,846.8	2,204.6
Cash and bank balances	265.8	753.3
Miscellaneous	762.1	829.9
Total assets	4,521.2	4,428.5

7. FINANCIAL POSITION

7.1 FINANCIAL MANAGEMENT AND FINANCIAL INSTRUMENTS

The financial management of the Sixt Group is largely centralised within the Corporate Finance division and is performed on the basis of internal guidelines and risk policies as well as a monthly Group liquidity planning. The key tasks include safeguarding liquidity, cost-oriented, long-term coverage of financing requirements of the consolidated companies under the going

concern assumption as well as managing interest rate and currency risks. Operative liquidity control and the cash management are mainly performed centrally for all consolidated companies by the Corporate Finance division of the Group.

For financing business operations, Sixt Group mainly uses bonds, borrower's note loans, commercial papers, a syndicated revolving credit facility, short-term bilateral credit lines from several banks, real estate redeemable loans and leasing agreements.

Sixt SE Annual Report 2021 — 41

COMBINED MANAGEMENT REPORT

ECONOMIC REPORT

To issue bonds, Sixt SE uses a Debt Issuance Programme set up in 2020 with a maximum total volume of EUR 2.50 billion, which allows Sixt SE to place bonds on the capital market within a short period of time if there is a market window.

Sixt SE is also an established issuer of borrower's note loans and regularly issues variable and fix borrower's note loans with different maturities.

To issue short-term bonds (so-called commercial papers), Sixt SE uses a long-established commercial paper programme with a maximum total volume of EUR 1.0 billion, which allows Sixt SE to place commercial papers if there is investor demand.

On 26 February 2021, Sixt SE as the borrower and six banks as the creditors concluded a syndicated loan agreement. Under this new revolving credit facility, loans with a total volume of up to EUR 750 million are possible. The term of the new revolving credit facility is three years and can be extended by another year, so that the maximum total term is four years. As usual, the extension is at the discretion of the banks involved. The credit facility can be used in different currencies.

Maturity profile of financing sources

In addition to the syndicated loan agreement, short-term credit lines have been granted bilaterally with several banks, mainly in the form of overdrafts or short-term, uncommitted credit lines.

To finance land and buildings, Sixt Group sometimes uses real estate redeemable loans.

To finance the rental fleet, the Group also uses to a large extent leasing agreements with external financial service providers, who are mainly tied to the manufacturer. Leasing financing continues to form an important part of the Group's refinancing portfolio. In some cases, vehicles are also rented directly from the manufacturer or made available for use.

All bonds, borrower's note loans and commercial papers are unsecured and not subordinated. This also applies to the syndicated loan and, except for the real estate redeemable loans, which are secured by mortgages, also to the credit lines granted bilaterally by banks.

The following graphics illustrate the maturities of the financial instruments and the financing mix as at 31 December 2021. The nominal amounts without accrued and future interest and without leasing liabilities of EUR 384.2 million are shown.

Mix of financing instruments as at 31 December 2021

Sixt SE Annual Report 2021

COMBINED MANAGEMENT REPORT ECONOMIC REPORT

7.2 EQUITY

As at 31 December 2021 the Group's equity amounted to EUR 1.75 billion after EUR 1.39 billion at the same reporting date the year before. Equity increased in particular because of the consolidated profit generated and currency effects. The equity ratio increased as a result to 38.6% (2020: 31.5%). The Sixt Group's equity ratio thus remained significantly above the average for the rental industry, as well as above its own target of at least 20%.

The share capital of Sixt SE as at reporting date remains unchanged at EUR 120.2 million.

7.3 LIABILITIES

Non-current liabilities and provisions declined year-on-year from EUR 1.94 billion by EUR 300.7 million or 15.5% to EUR 1.64 billion. The change is mainly based on the reduction in financial liabilities by EUR 325.9 million or 16.9% to EUR 1.60 billion (2020: EUR 1.93 billion). The non-current financial liabilities contain the bond 2018/2024 issued by Sixt SE with a nominal value of EUR 250.0 million as well as the bond 2020/2024 issued by Sixt SE

with a nominal value of EUR 300.0 million. The bond 2016/2022 issued by Sixt SE with a nominal value of EUR 250.0 million was reclassified to current financial liabilities in the financial year. In addition, the item also contains borrower's note loans, bank liabilities and lease liabilities with remaining maturities of more than one year in the total amount of EUR 1.05 billion (2020: 1.13 billion).

Current liabilities and provisions increased year-on-year by EUR 41.9 million to EUR 1.14 billion (2020: EUR 1.10 billion; +3.8%). Other provisions rose by EUR 48.1 million to EUR 142.4 million (2020: 94.3 million; +51.1%), particularly due to the higher provisions for personnel, as well as other liabilities by EUR 35.7 million to EUR 142.9 million (2020: EUR 107.2 million; +33.3%). Financial liabilities of EUR 398.7 million (2020: EUR 449.6 million; -11.3%), which had fallen by EUR 51.0 million due to repayments, and trade payables of EUR 401.7 Mio. Euro, which had fallen by EUR 21.1 million (2020: EUR 422.8 million; -5.0%), had a compensating effect.

The non-current and current financial liabilities less cash and bank balances (Net Financial Debt) amount to EUR 1.74 billion (2020: EUR 1.62 billion).

Consolidated balance sheet (condensed)Equity and liabilitiesin EUR million	2021	2020
Equity	1,746.2	1,394.7
Non-current liabilities and provisions
Provisions	19.8	3.7
Financial liabilities	1,602.7	1,928.6
Miscellaneous	14.1	5.1
Current liabilities and provisions
Provisions	195.1	116.9
Financial liabilities	398.7	449.6
Miscellaneous	544.6	530.0
Total equity and liabilities	4,521.2	4,428.5

8. LIQUIDITY POSITION

For 2021, Sixt Group reports gross cash flows of EUR 753.6 million, which is EUR 434.6 million above the prior year figure (EUR 319.0 million). Considering the depreciation on rental vehicles results in a gross cash flow before changes in net working capital of EUR 515.2 million (2020: 24.6 million). Adjusted for changes in working capital, this results in a cash inflow for operating activities of EUR 79.1 million (2020: cash inflow of EUR

669.3 million). Thereof EUR 28.0 million accounted for discontinued operations in 2020. The change compared to the previous year is primarily due to the significant increase of the rental fleet.

Investing activities resulted in a cash outflow of EUR 85.1 million (2020: cash inflow of EUR 12.6 million). The change – on balance – compared with the previous year is mainly due to higher investments in intangible assets and property and equipment, investments in deposits and the income recognised in the

Sixt SE Annual Report 2021 — 43

COMBINED MANAGEMENT REPORT

ECONOMIC REPORT

previous year from the disposal of the discontinued Leasing business. Thereof discontinued operations accounted for cash outflows of EUR 3.7 million in the previous year.

Financing activities resulted in cash outflow of EUR 489.3 million (2020: cash outflow of EUR 89.6 million). This was mainly due to lower payments received from borrower's notes taken out and bank loans, whereby high payments continued to be made to redeem the loans. Thereof discontinued operations accounted for cash inflows of EUR 99.2 million in the previous year.

After changes relating to exchange rates, total cash flows resulted in a year-on-year increase in cash and cash equivalents

as at 31 December 2021 of EUR487.5 million (2020: increase of EUR 582.8 million).

9. INVESTMENTS

Despite the current scarce availability of vehicles, Sixt added around 167,000 vehicles to the rental fleet in 2021 (2020: 175,400 vehicles) with a total value of EUR 5.12 billion (2020: EUR 5.48 billion). This corresponds to a decrease of 4.8% in the number and a decrease of 6.5% in the value of vehicles. The average value per rental car was around EUR 30,700 and thus slightly below the prior year's level of EUR 31,200.

Vehicles added to the rental fleet	2021	2020
Number of vehicles	167,000	175,400
Value of vehicles in EUR billion	5.12	5.48

In addition, investments were made in property and equipment, especially in operating and office equipment for station openings and conversions, as well as investments in

internally developed software and rights of use from leasing agreements.

— Sixt SE Annual Report 2021

COMBINED MANAGEMENT REPORT HUMAN RESOURCES REPORT

B.3 HUMAN RESOURCES REPORT

Our employees are the company's beating heart and crucial to our business success. Their passion and enthusiasm are key to ensuring our premium standards with all our products and services and to convincing our customers of Sixt. For this reason, a uniform level of quality with regard to the customer and service orientation of our employees is indispensable. To this end, Sixt sets high standards as early as the recruitment process. We expect all of our employees to act in a responsible and entrepreneurial manner, to constantly improve Sixt's offers and services, and thus to meet customer needs for flexible and demand-oriented mobility. Human resources work is derived from the strategic goals of the company.

The first two quarters of the financial year 2021 in particular were heavily impacted by the coronavirus pandemic. From June on, however, there were signs of a clear upturn. Short-time working was thus brought to an end in most corporate countries already at the beginning of the third quarter. The pandemic has sustainably accelerated the digital transformation in the working world and thus presented new challenges for HR work. In 2021, the focus was on topics such as implementing a hybrid work culture while ensuring a safe working environment, supporting managers on leading mobile teams, and developing and implementing measures for employee retention.

Sixt relies on internationally uniform modern standards in its human resources work and focuses on digital solutions – from the employer brand and selection of personnel via further training offerings to international development of junior staff and executives. In view of this, speakers from Sixt's human resources divisions were again in high demand for a number of expert conferences in 2021.

Further aspects of employee matters are presented in the Combined Non-Financial Declaration of the Group.

EHS Taskforce

The Employee Health & Safety (EHS) Taskforce established in 2020 has become a firm anchor in the company and makes a significant contribution to protecting both employees and customers. The far-reaching measures implemented in the previous year were continued in financial year 2021 and constantly adapted to the current situation and the guidelines of the respective countries.

Although these regulations were partially relaxed in view of falling incidence rates in the summer, this was accompanied by a strict hygiene concept.

In order to be able to provide employees with close guidance on all issues related to COVID-19, a globally always available support connection is still available to them. In the reporting year, 706 enquiries were received via this service. Regular publications and a knowledge database on the Sixt intranet provide information on the regulations currently in force in the respective countries. In addition, mandatory digital training on COVID-19 was implemented for all employees.

In order to contribute to the containment of the pandemic and to ensure the safest possible working and business environment, Sixt supported employees in the corporate countries Austria, Switzerland and the US in organising vaccination appointments. From June through August 2021, Sixt initiated a voluntary vaccination programme at several sites for all employees, the persons hired through work assignment contracts and one relative each in Germany. The vaccination campaign met with a very positive response: a total of over 700 employees and 160 relatives received their vaccination against COVID-19 during this campaign. Due to the great success, a second vaccination campaign was offered in Germany from December 2021 with the option of receiving first, second and third ("booster") vaccinations.

Recruitment strategy

The general economic upturn from the second quarter on in financial year 2021 has increased the need for personnel, not only at Sixt, but also at many other companies. This led to increased competition for candidates, which Sixt responded to by adopting a comprehensive recruitment strategy at the end of the second quarter. The recruitment team was further expanded and partly supported by external head hunters. In addition, Sixt invested in extensive employer branding measures and a target audience-oriented, cross-media approach. Sixt invested in various digital job portals and further expanded its presence on social media channels, particularly in France, Belgium and the Netherlands. In Germany, Sixt's LinkedIn recruitment team was awarded the Talent Award for "Best Talent Acquisition Team."

Experience shows that employee referrals are a very effective recruitment channel. For this reason, the programmes for referral bonuses were expanded in the corporate countries, made

Sixt SE Annual Report 2021 — 45

COMBINED MANAGEMENT REPORT HUMAN RESOURCES REPORT

even more attractive and extended to include an external referral programme.

In the reporting year, Sixt also participated in both digital and – as far as possible in light of the pandemic – actual trade fairs and events. The expansion of cooperation with universities, colleges and student networks in Germany by providing a broad range of career events, workshops and digital guest lectures was also borne out by the very high score the company has achieved in various employer rankings. In the transport, logistics and tourism industry, Sixt came in ninth place among the most attractive employers in the “Trendence” graduate barometer in the Germany-wide corporate comparison. In France, Sixt was awarded the “HappyAtWork” seal in 2021 and came in second place in the category “500 –1,000 employees.”

Economic and social developments show that a first-class recruitment strategy will continue to be crucial to success. Moreover, in times of a shortage of skilled workers, companies must convince applicants by offering attractive conditions in competing for talent. A strong company culture is a key criterion for many candidates when choosing an employer.

Attractive employer

Promoting a strong company culture

Sixt has always had a strong company culture with great cohesion among its employees. It is therefore all the more important for the company to keep this culture alive and further strengthen it, even in times of short-time or mobile work. A strong company culture is based on the values the employees share and that are lived out in the company. In view of the transformation of the company in recent years, Sixt launched a project involving employee participation in 2021 to define new company values that will be rolled out next year. Leadership culture and behaviour also make a decisive contribution to the company culture. Principles of first-class leadership were therefore developed at Sixt in the reporting year and will be rolled out in 2022.

To strengthen the company culture and team cohesion, a globally uniform per capita budget for the implementation of team events was also approved. To simplify the organisation of such digital or face-to-face events for managers, Sixt provided them with a range of possible activities. In addition, Sixt organised an internal activity week on the topic of appreciation.

Furthermore, Sixt is convinced that personal contacts are crucial to strengthening the company culture, communication between the teams and team cohesion. With this in mind, an appropriate

concept was developed in the summer when contact restrictions and the obligation to work from home were lifted. It makes the office a place of encounter where our culture can be experienced. Initial activities were implemented at Sixt headquarters in Pullach starting in the third quarter of 2021, as long as this was possible due to the pandemic. These included a company Oktoberfest for a small number of employees and a Halloween party, for which a certain number of people could register in accordance with the current corona regulations.

Feedback culture and communication

Sixt considers it important to keep the workforce informed about developments in the company in a transparent manner. This is also the basis for a strong culture. In 2021, the Management Board continued to inform employees about the latest company developments in regular digital global “All Nation” meetings.

For Sixt, being an attractive employer means listening and responding to feedback from the workforce. Accordingly, the company maintains an active feedback culture worldwide. Sixt conducts a digital employee survey several times a year in which employee satisfaction is surveyed and specific feedback on the company and supervisors is obtained. In the first half of 2021, employee satisfaction was at 82% (previous year: 84%). Valuable impulses were gained from the two rounds of surveys in the reporting year and translated into concrete measures to increase employee satisfaction. As a result, employee satisfaction improved to 88% in the second half of the year.

Besides this main survey, engaging in a direct exchange with employees is important for Sixt. When the pandemic situation permitted, members of the Management Board joined representatives of the Senior Management Team in personally visiting with employees at certain branches and sites in Europe. Following the lifting of entry restrictions, personal visits were also paid in the US to answer questions and accept further suggestions.

Sixt also provides support as an employer in the event of psychological problems. For this purpose, a free telephone counselling service available at any time in German, English and French was introduced as a pilot project in Germany that offers employees anonymous psychological support at short notice. In the reporting year, 46 calls were received from Sixt employees via this hotline between February and December.

Flexible work environment

Sixt sees the shift towards a flexible, hybrid working culture at its headquarters and service centres, in which some employees

46 — Sixt SE Annual Report 2021

COMBINED MANAGEMENT REPORT HUMAN RESOURCES REPORT

work at the office while others work on the go, as an opportunity to create an even more attractive working environment and to show trust in employees. New guidelines on mobile working were therefore implemented in the reporting year for employees whose work permits mobile working. Here, Sixt relies on a hybrid work culture that allows up to 50% mobile working per month. Various measures such as the digital "Mobile Work Academy," adapted guidelines for digital meetings as well as management seminars for those who lead hybrid teams support the employees in the transition to a mobile or hybrid work routine. In order to make collaboration in hybrid teams as successful as possible, Sixt also developed "SIXTflow," a framework concept for agile collaboration in the company as a pilot project at headquarters in Germany as the largest location. Further implementation is planned. Through this measure, Sixt offers its employees at the main offices and service centres freedom and flexibility while maintaining the company culture. A monthly Excitement Day was introduced to strengthen team cohesion and communication, on which all members of a team are present and have breakfast together, for example. This offer was suspended during the pandemic due to the legal obligation to work from home.

Furthermore, Sixt offers an attractive working environment that is free from superfluous bureaucracy. The goal is therefore to continuously scrutinise processes and make them leaner. As part of a global employee survey, 53 different fields of action were identified throughout the company in which processes can be simplified and made less bureaucratic. The first measures for improvement were already initiated during the reporting year.

Promoting a working environment characterised by freedom also means improving structures. Based on feedback from our branch managers and analysis of the work, job profiles were sharpened for the DACH region, topics centralised and additional roles created. This relieved the branch managers of administrative tasks, led to more freedom and a focus on the essential core activities of branch managers: customer service and staff management. At the same time, these measures created new career paths and prospects, by introducing new position levels and specialised roles, for example. In this context, dedicated development programmes and criteria for various positions are being developed together with the business unit and will be implemented in 2022.

In the area of Operations, all temporary employment contracts have been converted into permanent contracts and new positions are now exclusively filled on a permanent basis.

Promoting diversity

Sixt also consciously focuses on the expansion of a respectful, appreciative and tolerant working environment. Several initiatives such as the employee network "DiverSIXTy" and the LGBTIQ group ("Lesbians, Gays, Bisexuals, Trans, Inter* and Queers") "SIXT Pride" promote diversity and interculturality inside the company.

The internal diversity network "DiverSIXTy" strengthens a diverse company culture through various activities, training and panel discussions as well as trusted contacts. Besides the LGBT*IQ group "SIXT Pride," other focal points include the topics of work & family, interculturality and diversity mentoring.

In the US, as part of a DEIB* ("Diversity, Equity, Inclusion and Belonging") initiative, business partners were explicitly trained in the area of diversity, equity and inclusion in order to be able to advise employees and managers.

As a multinational company, Sixt increasingly employs people of various nationalities at its German sites. In order to facilitate the integration of these employees at the sites and support them as closely as possible, they are systematically assisted by so-called "Feel Good Managers." Originally launched for the IT department at headquarters in Pullach, the concept has met with such a positive response that it was extended to other departments and to the German service centres in the reporting year.

Attractive remuneration and benefits

Attractive remuneration is important to Sixt as an employer. In the reporting year, the company conducted comparative analyses of salary structures that are convincing in the market environment. Sixt then realised salary rounds on the basis of this data.

Besides attractive remuneration, Sixt also offers interesting employee benefits. The digital benefits platform, which has been available in Germany for some time, with a wide range of special offers from partners, was also introduced in Italy, Austria and Switzerland in the reporting year. Digital and individual sports programmes were made available to employees in Belgium, Luxembourg, the Netherlands and the US and additional countries are in the planning stage. A new employee leasing offer was created in Germany at the request of employees in 2021.

Sixt is aware of the great commitment that its employees showed during the pandemic. Their hard work made it possible for the company to emerge from the crisis even stronger. As a way of saying thank you for their work, perseverance and loyalty,

Sixt SE Annual Report 2021 — 47

Sixt paid all station and service centre employees worldwide a EUR 750 bonus in June 2021, followed by a global bonus of EUR 750 for all employees in October 2021.

Staff promotion and development

Internal career development is a top priority at Sixt. For this reason, Sixt pursues continuous personnel development through a variety of training and promotion programmes that support employees with their respective needs and requirements of everyday work life.

Trainee programme

Sixt places particular importance on the abilities of its employees in order to meet its customers' high and ever-changing demands. Sixt offers 12 to 24-month trainee programmes to prepare university graduates in the best possible way for the challenging tasks in the branch area and at company headquarters in Pullach. The intensive training prepares the trainees in a targeted manner for their future management tasks in a branch, which they can take over immediately after successful completion of the programme. Successfully trained trainees are also employed directly in various central departments at the company's headquarters. Internationally, 42 trainees were employed in Operations on average -- significantly more than in the previous year (6 trainees). Although the number of trainees in 2019 (74) has not yet been reached, a clear positive trend is emerging. In the main administrative areas, the programme has been suspended due to the ongoing pandemic, however resumption is planned again in 2022.

Supervisor and Senior Manager Programme

In the areas of Operations and Service Centres, various development programmes offer the opportunity to qualify for advanced positions such as Supervisor Operations, Supervisor Service Centre or Senior Manager Service Centre. In 2021, 33 employees (previous year: 28) took part in such training programmes internationally.

Sixt Talent Network

To prepare for the requirements of higher management and expert levels, Sixt relies on a development pool whose participants are individually trained and receive intensive support for their future tasks. In the one-year development programme “Sixt Talent Network,” participants expand their expertise in the areas of leadership, change management and entrepreneurship. In the reporting year, 39 employees (previous year: 17) from all corporate countries successfully participated in the programme.

Leadership curriculum

Furthermore, the company invests strategically in the development of its managers through additional measures. In order to meaningfully expand the leadership development programmes, qualitative interviews were conducted worldwide as well as a quantitative survey of managers to analyse current challenges and needs. On the basis of this, the development of a curriculum for first-class leadership at Sixt began in 2021.

Female Career Tandem

Sixt wants to specifically support female employees with their career development. As part of a one-year mentoring programme, female employees have the opportunity to be accompanied and advised in their development by an experienced Sixt manager. In the reporting year, 56 female employees in Germany took part in the mentoring programme (previous year: the programme was not offered due to the pandemic).

Annual staff appraisals

The annual staff appraisal is a fixed occasion to discuss individual development opportunities. This vital instrument is used to assess the performance and potential of employees. In addition, the company conducts 360-degree feedback sessions with managers as needed for their individual development. In this context, assessments from superiors, colleagues and employees are obtained and compared in addition to the employee's own assessment. These instruments serve both the employees and Sixt as a decision-making aid and basis for future development and support programmes, which can be individually tailored to the respective employee.

Lunch & Learn

“Lunch & Learn” was introduced in Germany in 2021 as a further format for networking and topic-specific further training for managers. With these digital, event-related meeting, managers are supported on the further development of their leadership skills. The focus here is on stimulating exchange among managers.

Sixt Campus

In addition to the above-mentioned programmes, employees have access to Sixt Campus, a digital learning platform on which content can be accessed at any time to enable independent learning. The internationally standardised onboarding and further training measures provided via Sixt Campus ensure that employees at all functional and hierarchical levels in Germany and abroad receive training and further education on business-relevant and strategic topics. In addition, employees are also supported individually in their professional and personal

COMBINED MANAGEMENT REPORT HUMAN RESOURCES REPORT

development within the company via a variety of different learning formats. Sixt continuously adapts its training offering in line with the requirements.

After establishing all digital training and development programmes in the operational area and the Sixt service centres in all corporate countries in 2020, the training department expanded the digital training portfolio in the areas of leadership, junior staff development and talent development in 2021.

Currently, Sixt Campus offers more than 1,100 (previous year: 1,400) web-based training sessions in different languages, more than 460 (previous year: 550) knowledge tests and more than 15 (previous year: 100) evaluation forms. In addition, Sixt Campus currently offers around 50 (previous year: 100) training plans that are tailored to the needs of different target audiences in the onboarding process. The differences compared to the previous year are due to an inventory in which outdated content was deleted in the financial year and classroom training that cannot yet be offered due to the pandemic situation was temporarily archived. This ensured that only current and available learning content was offered to staff. In financial year 2021, more than 104,500 (previous year: 55,500) eLearning call ups resulted in 66,729 (previous year: 23,700) eLearning hours.

The company places great importance on quality assurance in the area of training. Against this backdrop, a new key figure, the DCES (Digital Content Excitement Score), was introduced at the

beginning of the first quarter of 2021 and implemented in all corporate countries. Through direct feedback on each digital learning activity completed, learning progress and the learning experience can be analysed and evaluated, and changes in requirements can be responded to quickly.

Number of employees

Sixt Group had an average workforce of 6,399 employees in 2021 (previous year: 6,921). This is around 8% fewer than in 2020, which is due to the further decline in staff numbers in the first half of the year as a result of the pandemic.

In Germany, the average number of employees in 2021 was 2,704, 15% less than in the previous year (previous year: 3,171).

In Europe, the average number of employees declined from 2,585 in the previous year to 2,421 in 2021; a decrease of 6%.

In North America, the average number of employees increased by 6% to 955 in financial year 2021 (previous year: 902).

The Other segment had an average of 319 employees (previous year: 263).

The Leasing business unit, which was sold in the previous year, had an average of 649 employees until the completion of the sale of the Sixt Leasing SE shareholding on 15 July 2020.

Number of employees (average)	2021	2020
Germany	2,704	3,171
Europe	2,421	2,585
North America	955	902
Other	319	263
Total	6,399	6,921

Sixt SE Annual Report 2021 — 49

COMBINED MANAGEMENT REPORT

DISCLOSURES IN ACCORDANCE WITH SECTIONS 289A AND 315A HGB

B.4 DISCLOSURES IN ACCORDANCE WITH SECTIONS 289A AND 315A HGB

Composition of subscribed capital, classes of shares

The subscribed capital of Sixt SE as at 31 December 2021 amounted to EUR 120,174,996.48 and is divided into 30,367,110 ordinary bearer shares, two ordinary registered shares and 16,576,246 non-voting preference bearer shares.

The company's shares are all no-par value shares with a proportionate amount in the subscribed capital of EUR 2.56 per share. The share of ordinary shares in the subscribed capital as at 31 December 2021 thus totalled EUR 77,739,806.72 and the share of preference shares EUR 42,435,189.76. The shares are fully paid in.

Only the ordinary shares are entitled to vote. Each ordinary share grants one vote at the Annual General Meeting. Subject to mandatory statutory provisions, the preference shares do not grant voting rights. Insofar as preference shares are nevertheless entitled to voting rights, one preference share shall grant one vote. Preference shares grant a preferential right to profits on the basis of which the holders of preference shares receive a dividend of EUR 0.02 more than the holders of ordinary shares from the unappropriated profit for the year, but a dividend of at least EUR 0.05 per share. Preference shareholders are entitled to subsequent payment of the minimum dividend if the unappropriated profit of one or more financial years is not sufficient to distribute the minimum dividend. Further details can be found in Article 22 of the Articles of Association of Sixt SE.

Restrictions on voting rights or the transfer of shares

Apart from the exclusion of voting rights for preference shares, there are no restrictions on voting rights under the company's Articles of Association. The transfer of shares is likewise not subject to any restrictions under the company's Articles of Association. The Management Board is not aware of any agreements between shareholders aimed at restricting voting rights or the transfer of shares. However, vesting periods apply to shares received by employees, executives and members of the Management Board of Sixt Group under the matching stock programme. Details are provided in the Notes to the Consolidated Financial Statements under "Share-based payment."

Shareholdings in Sixt SE

Erich Sixt Vermögensverwaltung GmbH, Pullach, district of Munich, whose shares are held directly and indirectly in full by the Sixt family, holds 17,701,822 ordinary voting shares in the company's subscribed capital as at 31 December 2021 that grant 58.3% of the votes. The company has not been notified of any other direct or indirect shareholdings exceeding 10% of the voting rights as at 31 December 2021, nor is the Management Board aware of any such shareholdings.

Shares with special rights

Pursuant to Article 10 (1) of the Articles of Association of Sixt SE, the company's Supervisory Board consists of three members. Of these, two members are elected by the Annual General Meeting in accordance with the statutory provisions. Another member is appointed to the Supervisory Board by the shareholder Mr. Erich Sixt. His heirs are also entitled to the right of delegation, insofar as they are shareholders. Otherwise, there are no shares with special rights conferring powers of control.

Employee participation and their control rights

The company is not aware of any employee shareholdings in the company's capital in which the employees' rights of control are not exercised directly.

Appointment and dismissal of members of the Management Board, amendments to the Articles of Association

Sixt SE has a two-tier management and supervisory system consisting of a management body (Management Board) and a supervisory body (Supervisory Board). The statutory provisions and conditions of the Articles of Association concerning the appointment and dismissal of members of the Management Board are set out in Article 39 (2) sentence 1 of the SE Regulation, Article 46 of the SE Regulation, Section 16 of the SEAG, Article 9 (1) lit. c) (ii) of the SE Regulation, Sections 84, 85 of the AktG and Article 7 of the Articles of Association. Accordingly, the Management Board shall be comprised of one or more persons. The number of members of the Management Board is determined by the Supervisory Board. Pursuant to Article 7 (2) of the Articles of Association, the members of the Management Board may be appointed by the Supervisory Board for a maximum period of five years. The Supervisory Board resolves on this by a simple majority of the votes cast. Reappointments are permissible.

Sixt SE Annual Report 2021

COMBINED MANAGEMENT REPORT
DISCLOSURES IN ACCORDANCE WITH SECTIONS 289A AND 315A HGB

Premature dismissal of a member of the Management Board by the Supervisory Board requires good cause in accordance with the statutory provisions.

Amendments to the Articles of Association of Sixt SE are resolved by the Annual General Meeting. Subject to mandatory statutory provisions, the preference shares have no voting rights. Resolutions of the Annual General Meeting amending the Articles of Association require by law a majority of three quarters of the share capital represented when the resolution is adopted (Article 59 (1) SE Regulation, Section 179 (2) 1 AktG).

However, the law also provides for the possibility that the Articles of Association allow for a smaller majority, provided that at least half of the subscribed capital is represented. Nevertheless, this possibility does not apply to changes in the object of the company, the transfer of the registered office of the company to another member state and to cases for which a higher capital majority is mandatory under statutory provisions (Article 59 (2) SE Regulation, Section 51 SEAG).

Sixt SE has made use of the possibility of a deviating regulation of the majority requirements by means of a provision in the Articles of Association that is customary for listed companies. Pursuant to Article 20 (2) of the Articles of Association, amendments to the Articles of Association require a simple majority of the valid votes cast if at least half of the share capital with voting rights is represented, unless mandatory statutory provisions provide otherwise. In deviation from this, Article 20 (2) 3 of the Articles of Association stipulates that capital increases from company funds may only be resolved by a majority of 90% of the valid votes cast. In accordance with Article 16 of the Articles of Association, amendments to the Articles of Association that only affect their wording can also be adopted by the Supervisory Board instead of the Annual General Meeting.

Powers of the Management Board, in particular to issue and buy back shares

Authorised Capital 2020: Pursuant to Article 4 (3) of the Articles of Association, the Management Board is authorised, with the consent of the Supervisory Board, to increase the share capital of the company on one or more occasions up to and including 23 June 2025 by up to a total of EUR 32,640,000.00 by issuing new no-par value bearer shares against cash and/or non-cash contributions (Authorised Capital 2020). The authorisation also includes the power to issue new non-voting preference shares up to the maximum limit legally permitted that rank equally with the

non-voting preference shares previously issued in the distribution of profits and/or company assets. The Management Board is authorised, with the consent of the Supervisory Board, to determine the further content of the share rights and the conditions of the share issue. The new shares may, with the consent of the Supervisory Board, also carry dividend rights from the beginning of the financial year preceding their issue if the Annual General Meeting has not yet passed a resolution on the appropriation of profits for that financial year at the time the new shares are issued.

Further details, including the authorisation of the Management Board to exclude shareholders' subscription rights in certain cases, are set out in the above provision of the Articles of Association.

The authorisation to issue new shares from authorised capital enables the Management Board to meet any capital requirements of Sixt SE quickly and flexibly and to take advantage of attractive financing opportunities depending on the market situation.

Conditional Capital 2020: By resolution of the Annual General Meeting of 24 June 2020, the Management Board is authorised, with the consent of the Supervisory Board, to issue bearer and/or registered convertible bonds and/or bonds with warrants with a total nominal value of up to EUR 350,000,000.00 with a fixed or unlimited term on one or more occasions up to and including 23 June 2025 and to grant the holders or creditors of bonds conversion or option rights to subscribe to a total of up to EUR 6,000,000 new no-par value bearer shares of Sixt SE and/or to provide for corresponding conversion rights for the company. The respective conversion or option rights may provide for the subscription of ordinary bearer shares and/or non-voting preference bearer shares in compliance with the statutory requirements. The convertible bonds and/or bonds with warrants may also be issued by a domestic or foreign company in which Sixt SE directly or indirectly holds a majority of the votes and capital. In this case, the Management Board is authorised to assume on behalf of the issuing company on the part of Sixt SE the guarantee for the repayment of the bonds and the payment of the interest to be paid thereon and to grant the holders or creditors of such bonds conversion or option rights to shares of Sixt SE. Convertible bonds and/or bonds with warrants may be issued against cash and/or non-cash contributions. The shareholders of Sixt SE are generally entitled to the statutory subscription right, but the Management Board is authorised, with the consent of the Supervisory Board, to exclude the subscription right under certain conditions.

Sixt SE Annual Report 2021 — 51

Further details, including the authorisation of the Management Board to exclude shareholders' subscription rights in certain cases, are set out in the resolution of the Annual General Meeting of 24 June 2020.

In connection with this, the share capital of the company is conditionally increased by resolution of the Annual General Meeting of 24 June 2020 by a total of up to EUR 15,360,000.00 by issuing a total of up to 6,000,000 new no-par value ordinary bearer shares and/or no-par value non-voting preference bearer shares (Conditional Capital 2020). The conditional capital increase serves the purpose of granting shares to holders or creditors of convertible bonds as well as to holders of option rights from warrant bonds issued by Sixt SE or a domestic or foreign company in which Sixt SE directly or indirectly holds a majority of the votes and capital on the basis of the authorisation pursuant to the resolution of the General Meeting of 24 June 2020 up to and including 23 June 2025. It will only be carried out to the extent that the conversion or option rights from the aforementioned bonds are actually exercised or conversion obligations from such bonds are fulfilled and to the extent that no other forms of fulfilment are used for servicing. The new shares shall be issued at the option or conversion price to be determined in accordance with the aforementioned authorisation resolution of the Annual General Meeting of 24 June 2020. The new shares shall participate in the profits of the company from the beginning of the financial year in which they are issued; instead, they shall participate in the profits of the company from the beginning of the financial year preceding their issuance if, at the time of the issuance of the new shares, a resolution on the appropriation of the profits of this financial year has not yet been adopted by the Annual General Meeting. The Management Board is authorised to determine the further details of the implementation of the conditional capital increase.

Authorisation to acquire treasury shares: By resolution of the Annual General Meeting of 24 June 2020, the Management Board is authorised, pursuant to Section 71 (1) 8 AktG, to acquire the company's own ordinary bearer shares and/or preference bearer shares up to and including 23 June 2025 in an amount of up to 10% of the company's share capital existing at the time the authorisation is granted or -- if lower -- at the time the authorisation is exercised. The shares acquired on the basis of the aforementioned authorisation, together with other treasury shares held by the company or attributable to it pursuant to Section 71d AktG, may at no time account for more than 10% of the respective existing share capital.

The authorisation may be exercised, in each case with the consent of the Supervisory Board, in whole or in part, once or several times by the company or by companies dependent on it or in which it holds a majority interest, or also by third parties acting for the account of the company or for the account of companies dependent on it or in which it holds a majority interest. The authorisation may be exercised for any legally permissible purpose. An acquisition for the purpose of trading in own shares is ruled out. In accordance with the resolution of the Annual General Meeting of 24 June 2020, the company is authorised to also use derivatives to acquire treasury shares.

Further details, including the authorisation of the Management Board to exclude shareholders' subscription rights in certain cases, are set out in the resolutions of the Annual General Meeting of 24 June 2020.

Information on the acquisition and holdings of treasury shares can be found in the Notes to the Consolidated Financial Statements under 4.22 Treasury shares.

Significant agreements of the company that are conditional upon a change of control following a takeover bid

In the event of a change of control, including as a result of a takeover bid, creditors of the company shall be entitled to the following rights:

The respective creditors of the bonds 2016/2022 (ISIN: DE000A2BPDU2) and 2018/2024 (ISIN: DE000A2G9HU0) issued by the company in the nominal amount of EUR 250,000,000.00 each and of the bond 2020/2024 (ISIN: DE000A3H2UX0) issued by the company in the nominal amount of EUR 300,000,000.00 shall be entitled to a termination right exercisable with a notice period of 30 days after the announcement of the change of control (or 30 days after the next interest payment date, if this would be within the aforementioned 30-day period). A change of control is deemed to have occurred under the terms and conditions of the bonds if a person or persons acting in a coordinated manner within the meaning of Section 34 (2) WpHG acquire control of the issuer after the issue date. Control means here direct or indirect legal or beneficial ownership (in each case within the meaning of Section 34 WpHG) of ordinary shares which together grant more than 30% of the voting rights. Person means here any natural person or legal entity or organisation of any kind, but excluding (i) affiliated subsidiaries of the issuer within the

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DISCLOSURES IN ACCORDANCE WITH SECTIONS 289A AND 315A HGB

meaning of Sections 15 to 18 of the German Stock Corporation Act, (ii) Mr. Erich Sixt, (iii) his relatives in the direct line, (iv) his spouse or the spouses of his relatives in the direct line, (v) a Sixt family foundation and/or (vi) a company or joint venture or other organisation or association controlled by the persons named under (ii) to (v) within the meaning of Sections 15 to 18 AktG, irrespective of whether or not it is an independent legal entity.

After the expiry of a negotiation period of 20 banking days after the occurrence of the change of control, the creditors of the syndicated loan each individually have the right to terminate their loan commitment by observing a notice period of not less than ten banking days and to call due and payable all their shares in drawings outstanding under the syndicated loan (mandatory special redemption right). Under the terms of the syndicated loan agreement, a change of control occurs if a person or persons acting in a coordinated manner within the meaning of Section 34 (2) of the German Securities Trading Act (WpHG) acquire control over Sixt SE after the syndicated loan agreement has been concluded. Control means here direct or indirect legal or beneficial ownership (each within the

meaning of Section 34 WpHG) of ordinary shares which together grant more than 30% of the voting rights. Person means here any natural or legal person or organisation of any kind, but excluding (i) Mr. Erich Sixt, (ii) his relatives in a direct line, (iii) his spouse or the spouses of his relatives in a direct line, (iv) a Sixt family foundation established by one or more persons named under (i) to (iii) or (v) and/or (v) a company or joint venture or other organisation or association controlled by the persons named under (i) to (iv) within the meaning of Sections 15 to 18 of the AktG, irrespective of whether or not it is an independent legal entity.

The rights described above are all creditor rights that are common in the capital market or the credit business.

Compensation agreements of the company with members of the Management Board or employees in the event of a takeover bid

The company has not entered into any compensation agreements with members of the Management Board or employees in the event of a takeover bid.

Sixt SE Annual Report 2021 — 53

COMBINED MANAGEMENT REPORT FORECAST REPORT

B.5 FORECAST REPORT

1. GENERAL ECONOMIC CONDITIONS

At the beginning of 2022, the development of the global economy is still impaired by the coronavirus pandemic, mainly due to the threat from the Omicron mutant. Due to the progress that has been made with vaccinations in most countries in the meantime, there are no longer lockdowns and travel restrictions to the same extent as in the previous year. The uncertainties remain, however.

After the pandemic had eased considerably in the summer of 2021, and despite successfully initiated vaccination campaigns, most industrialised and emerging countries were surprised by the high number of vaccination breakthroughs and the effect of the vaccines, which many overestimated, as well as by the high infection pressure of ever new virus variants. Nevertheless, in its World Economic Outlook of January 2022, the IMF expects the global economy to grow by 4.4% in 2022 compared to the previous year.

Higher growth rates are prevented by the supply chains that are still disrupted in many industries. Together with rising commodity prices, this has pushed inflation to high levels. On an annual average, consumer prices increased by 3.1% in 2021 compared to the previous year. The IMF expects inflation to remain high in the current financial year and not to ease until 2023.

The IMF warned of major disparities in economic recovery, however, due to uneven corona vaccine progress and government support for businesses and households. For an economic recovery to take place in 2022, the IMF says the priority must be to prevent corona mutations and bring vaccines to all countries.

The IMF forecasts economic growth of 4.0% for the US in 2022. The expectation for the eurozone, on the other hand, is somewhat more restrained, at economic growth of 3.9%.

Growth in Germany is expected to be 3.8%, according to the IMF. The Kiel Institute for the World Economy (IfW) noted a significant slowdown in growth in German industry at the end of 2021, which pushes back the previously expected catch-up processes in the economy by several months.

The outbreak of the war in Ukraine, a fundamental intensification of the conflict between Russia and Ukraine that has existed for years into a war, leads to considerable new uncertainties. A deterioration of the economic environment and a slowdown of the expected economic growth can be assumed.

The IMF expects to revise its forecasts for economic growth in 2022 and highlights as influencing factors in particular an increase in inflation due to price increases for raw materials and energy, disruption of supply chains, refugee flows and a deterioration in economic optimism and increased uncertainty among investors.

The ECB has already made a reassessment for the euro zone and has reduced its growth forecast from 4.2% to 3.7%.

Sources

European Central Bank (ECB), ECB staff macroeconomic projections for the euro area, 10 March 2022
International Monetary Fund (IMF), How War in Ukraine Is Reverberating Across World's Regions, Statement 15 March 2022
International Monetary Fund (IMF), World Economic Outlook Update January 2022
Kiel Institute for the World Economy (IfW), Statement 15 December 2021
Federal Statistical Office, Press Release 19 January 2022

2. SECTOR DEVELOPMENTS

With a view to the economic forecasts for the year 2022, Sixt assumes improved economic conditions for mobility services compared to the previous year. However, this expectation is associated with considerable uncertainties, on the one hand due to the persistence of the coronavirus pandemic, on the other hand due to the escalation of the Ukraine crisis, which escalated into a war shortly before this report was compiled.

For example, at the time of the preparation of this Combined Management Report it is not concretely foreseeable when and whether international travel will need to be restricted again due to the virus mutant Omicron or new virus mutants. This would restrict mobility, which is of crucial importance to Sixt. Notwithstanding the significant economic recovery in the course of 2021, driven by a noticeable return in the willingness of many people to travel, Sixt will carefully analyse the overall economic and industry-specific developments in 2022.

Besides the travel and tourism association World Travel & Tourism Council (WTTC), the World Health Organization WHO also clearly spoke out at the end of 2021 in favour of continuing to

54 — Sixt SE Annual Report 2021

keep borders open. According to the WTTC, the trends already noticeable in 2021 of a significant increase in the respective domestic tourism, also because of the US entry regulations for Europeans that were not relaxed until November 2021, will continue in 2022. In this context, an increasing differentiation between increasingly restricted unvaccinated persons as opposed to vaccinated travellers can be observed. While the first group is still considerably restricted by testing and quarantine obligations, vaccinated persons have regained nearly all of their freedoms.

This was also underscored by the European Travel Commission (ETC), which considers the digital EU-COVID certificate that has been implemented to be mainly responsible for this. After the “Year of Recovery 2021,” the ETC expects a further increase in travel activity in Europe in the current year, which will not reach pre-crisis levels again until 2024, however. Although the willingness of Europeans to travel has increased again, the trend towards short-term spontaneous bookings, primarily within Europe or domestically, continues.

On the other hand, the German Air Transport Association (BDL) has commented more cautiously. Considering the progress being made with the vaccination campaign, a further lifting of travel restrictions and a robust development of the German economy, traffic performance in 2022 could recover to 80% of the level of 2019, however. The pre-crisis level is not expected to be reached again until 2025, however.

With regard to the war in Ukraine, effects on the on the mobility industry arise primarily from the macroeconomic effects described in the previous section. In addition, a further shortage of the vehicle supply due to production facilities of suppliers and car manufacturers shut down in Ukraine and Russia, as well as a reduced demand for mobility services due to sharply increased fuel prices are to be feared.

Sources

World Health Organization (WHO), Statement 19 January 2022

World Travel & Tourism Council (WTTC), Press Release 17 December 2021

World Travel & Tourism Council (WTTC), Trending in Trave, November 2021

European Travel Commission (ETC), European Tourism: Trends & Prospects -- Quarterly Report (Q3/2021), November 2021

German Air Transport Association (BDL), Report on the first half of 2021, 10 August 2021

Expected Future Development

In the last two financial years that were severely affected by the coronavirus pandemic, Sixt has demonstrated its high resistance to crises and its ability to react swiftly to changing conditions. The decisive factor here is a strategy oriented towards long-term profitable growth that is aimed at being able to respond flexibly to varying customer needs thanks to its broad international presence and with the help of an integrated and digital mobility platform. Due to the very solid financing and equity situation of the Group, Sixt has also continued to invest during the corona crisis and thus anti-cyclically and, in particular, consistently implemented its internationalisation and digitalisation strategy. In doing so, the company is growing in both the private customer business and with corporate customers. For 2022 and the following years, Sixt sees substantial revenue and earnings potential, the growth momentum of which will be consistently leveraged by making strategic investments. A conservative financing policy and the high quality of the balance sheet provide a solid financial basis for this.

Fundamental changes in mobility behaviour open up huge additional market potentials

The company firmly believes that how people all over the world think about mobility will change considerably in the coming decades. Sixt is taking this into account with its integrated mobility platform and the far advanced digitalisation of all operational business processes. The future of the company will be shaped by its ability to offer customers maximum flexibility and freedom in mobility without having to own a vehicle. The topic of sustainability plays an extremely important role here. In order to be able to efficiently leverage the resulting growth potential, Sixt has successively expanded and diversified its product range. Due to the consistent conversion of the business model in recent years, the addressable global market potential of 65 billion US dollars in 2021 forecast by Sixt could grow many times over in the decades to come. In order to benefit from these trends, Sixt is focusing its growth strategy on the following initiatives:

Expansion of digital mobility services via an integrated platform

This financial year, Sixt plans to further develop its position as an international mobility provider that offers its customers digital services with which they can easily and flexibly design their mobility. The digitalisation of all business activities via the established mobility platform ONE and the SIXT App is critical to this. Digitalisation affects all sales channels as well as all operational business processes.

The importance of integrated digital mobility will increase in the long term due to increasing urbanisation and the related individual demands on the flexibility and availability of a vehicle. The transfer services offer and increasingly sustainability aspects,

among other considerations, due to a growing share of electric vehicles, are also being considered. According to United Nations estimates, around two thirds of the world's population will live in big cities or metropolises by 2050. Easy digital access to an individually appropriate mobility mix will be the critical differentiating feature of mobility providers in view of the scarce space in cities and rising vehicle costs. In order to leverage the resulting growth and market share potential, Sixt is driving the further development of its digital services by making high investments. The focus is on the functionality of the applications in terms of their user-friendliness and design. In addition, Sixt will further optimise the successfully established integration of its offers into the booking processes of cooperation partners such as hotel chains, airlines, travel apps and other partners.

SiXT rent as the basis for the company's success

SIXT rent remains the foundation of Sixt Group's business success. One decisive factor in achieving customer satisfaction is noticeable added value in terms of flexibility, time savings and convenience of services across all sales channels. These aspects will continue to be developed and expanded in 2022 by integrating new partners into the mobility platform. This also includes the offer of further “digital stations” in car parks or shopping centres to meet the local needs of customers and the vehicle offer geared to it. The global station network will be further optimised worldwide in the future and be flexibly adapted to address any changes in demand that could take place. Thus, Sixt enables its customers worldwide to book the right vehicle for their current needs via the SIXT App, pick it up at Sixt stations or have it delivered and even open it via the App.

Sixt share as an important building block for the sustainable mobility of the future

In addition to Germany, SIXT share has also been established abroad for the first time since mid-2020 with the Netherlands and will be successively expanded internationally. Modern car sharing will become an important building block for sustainable mobility worldwide years and decades from now; this is also to be investigated as part of a study by the University of St. Gallen. Sixt is therefore advancing the networking of the vehicles in the fleet for flexible use in both car rental and car sharing. This allows Sixt to offer car sharing vehicles to both current and new groups of customers, even outside its defined fields of business. Offering premium vehicles with high-quality extras and electric vehicles in more and more stations will be of great importance.

Expansion of the SIXT+ range in response to increased customer demand

SIXT+, Sixt's car subscription service, which has been offered since 2020, is expected to make a major contribution to revenue in 2022, as it did in the previous year, in view of a strong increase in demand from business and private customers. SIXT+ is also available via the SIXT App and offers customers a modern and affordable alternative to possessing their own vehicle. The focus is on the use of a vehicle with freely selectable terms at fixed monthly rates that include all costs for maintenance, insurance, servicing and wear and tear. In 2022 and in the following years, Sixt would like to significantly expand the number of subscription vehicle models and place a special focus in particular on electromobility. SIXT+ has developed very positively, especially during the coronavirus pandemic, and Sixt Group expects the demand trend in this area to become even more dynamic in the years to come.

Sixt ride offers flexible transfer services together with strong partners

SIXT ride is another building block for meeting the mobility requirements of the future. Transfer services can be booked easily and flexibly via the mobility platform ONE thanks to the fact that they are linked to high-performance mobility partners in the taxi and ride-hailing sector. Sixt is currently concentrating regionally on its core markets Germany, the US, the UK, France, Spain, and the Benelux. Furthermore, private and business customers are offered further pre-bookable transfer services in many cities worldwide. In addition, with SIXT ride, the company is also increasingly addressing corporate travel managers, who can use it to professionally purchase taxi and driving services. The range of services also includes the option of retrieving all invoices -- for business trips, for example -- from Sixt in one place and in one format via the app.

Sixt truck with focus on expanding market position

SIXT truck is one of Sixt's future growth drivers. The medium-term goal is to achieve a market-leading position in Europe in the area of light and medium commercial vehicle rental and a significant market share in the US. Sixt estimates the addressable market potential worldwide at more than USD 10 billion. The company sees competitive advantages above all thanks to its high degree of digitalisation, functional synergies with the SIXT rent business, independence from manufacturers with regard to its range of vehicles and adaptability to customer- and segment-specific product and process solutions. By the end of 2021, Sixt already had over 900 own and franchise stations internationally offering a selection of vans and trucks. In addition, Sixt initially established ten more deeply specialised Truck Competence Centres in Europe in 2021. In February 2022, a Truck Competence Centre was opened on the

site of the former Tegel Airport that covers more than 15,000m² for up to 400 vehicles. The Truck Competence Centres are geared towards the increased needs of demanding business customers and offer the entire commercial vehicle range up to 14 tonnes as well as special vehicles. In these centres, the short-term availability of very complex industry-wide requests of up to 50 vehicles can also be made possible. The number of stations is to be expanded significantly in the next few years, including in the US. Here, too, the strategic focus is on connecting the product area to the digital mobility platform ONE.

Unique mobility models complement the range

To complement its range of offerings, Sixt will continue to offer flexible mobility models for individual travel planning in 2022 and the following years via need-based solutions such as SIXT long-term flex and SIXT unlimited. With SIXT long-term flex, customers do not have to commit to a long-term rental car but can change between vehicle classes and drive types at any time within the contract period or pause the use of the vehicle. Costs over and above the monthly basic are only incurred when a vehicle is used. SIXT unlimited combines the advantages of a company car that is always available with the flexibility of a rental vehicle. Customers only pay a flat monthly rate for the use of the respective vehicle of their choice; no separate costs are incurred for their own vehicle or taxis.

Internationalisation as a key growth driver

The basis of Sixt's success, even during the coronavirus pandemic, was and is the consistent expansion of its market positions both domestically and internationally. In doing so, the company, unlike most of its competitors, managed to benefit from its financial strength and gain market share through targeted expansion steps. Of the new stations opened in the Sixt corporate countries in 2021, 28 are located outside Germany. The significant growth of the international business relates to both the private customer and, increasingly, the corporate customer business, but also to the Vans & Trucks business. The focus for 2022 is on expanding the US business. Besides organic growth, Sixt is also constantly examining opportunities for external growth from the international concentration process among car rental companies that has been underway for years. The gradual expansion and optimisation of the global franchise network is yet another focus of activities. In this context, Sixt benefits from cooperation with partners in important economic regions worldwide who have achieved a strong market position and have comprehensive knowledge of the business. This also applies to the cooperation with so-called General Sales Agents (GSAs), especially for the Sixt products offered via B2B, B2C and B2P channels. In addition, booking partnerships are concluded with relevant travel portals and customer service is provided in the respective national language to generate outbound business in Sixt corporate and franchise countries.

EXPECTED DEVELOPMENT OF THE EARNINGS SITUATION IN 2022

Sixt assumes that the consistent expansion of the business model following the record year of 2021 will enable a good operational development is 2022 as well, despite uncertainties due to the ongoing coronavirus pandemic and uncertainties in connection with the war in Ukraine.

With regards to the coronavirus pandemic, experts expect that increasing vaccination rates and basic immunisation, especially in the industrialised nations that are particularly important for Sixt, will lead to a normalisation of public life and a decrease in restrictions and limitations over the course of the year. Uncertainties remain, however, regarding the occurrence and consequences of new virus variants, which -- as in previous years -- can have a major impact on companies in the tourism and mobility industry.

Regarding the Ukraine war, there are considerable uncertainties about the further development of the situation and the global economy, as described in the previous sections.

The key financial control parameters i.e. performance indicators at Sixt Group for the earnings situation are revenue and earnings before taxes. In addition, Sixt also documents its clear commitment to its social responsibility in this Annual Report (see also the Combined Non-Financial Declaration of the Group included in this report).

The following assessments are based on the expectation that the development and regulatory framework of the pandemic-related infectious event will allow for a gradual normalisation of national and international, private and business travel activity most likely from the spring of 2022 on and that no further geopolitical deterioration results from the war in Ukraine.

In order to be able to consistently realise the growth opportunities described above, Sixt will invest heavily once again in expanding its staff in the year under review, as well as in the expansion of the vehicle fleet and infrastructure, the further development of the software, and again increasingly in marketing activities. Despite very good and established business relationships with the world's largest car manufacturers, especially in the premium segment, the level of investment again depends

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FORECAST REPORT

heavily on the availability of vehicles for a possible expansion of the fleet. At the beginning of 2022, fewer vehicles were available than in the previous year in view of the global shortage of materials, especially in the semiconductor sector. Although the semiconductor problems are expected to ease from the second quarter, there are new risks from disrupted supply chains and missing components due to the war in Ukraine. Due to the shortage of vehicles, which was still the case at the beginning of 2022, Sixt is assuming a high market price level until at least the second half of the financial year.

Based on these premises and assuming a continued revival of the international business and US activities, in particular, substantially higher contributions from the subscription business as well as positive effects due to the expansion in the Vans & Trucks product area, the Management Board expects a significant increase in consolidated revenue for the full financial year 2022 compared to the previous year's level of EUR 2.28 billion.

With significantly higher investments, a persistently higher inflation rate and a high price level expected at least until the second half of the financial year, Sixt expects earnings before taxes for the Group to be in the range of EUR 380 million to EUR 480 million (previous year: EUR 442.2 million).

58 — Sixt SE Annual Report 2021

COMBINED MANAGEMENT REPORT REPORT ON RISKS AND OPPORTUNITIES

B.6 REPORT ON RISKS AND OPPORTUNITIES

1. INTERNAL CONTROL AND RISK MANAGEMENT ORGANISATION

1.1 RISK MANAGEMENT SYSTEM

Sixt SE has installed an internal control and risk management system to identify at an early stage and actively cope with all developments that could lead to significant losses or endanger the existence of the company or the Group. Sixt's risk management system covers all activities for the systematic handling of risks in the company, starting with risk identification and documentation, analysis and assessment up to monitoring and managing of material risks, coordinating and maintaining the internal control mechanisms and countermeasures as well as the continuous monitoring of risk exposure. This systematic way of managing risks is defined by a process into which all relevant Group divisions are firmly integrated. Active management of relevant risks is ensured by decentrally defined risk owners as well as through the coordination of the risk management measures and monitoring of these measures by central functions. Opportunity management is not part of the risk management system.

Sixt Group has detailed planning, reporting, early warning and internal control systems in place, both centrally and decentrally, in the respective functional areas right down to the level of the individual rental stations, which have been tried and tested in practice over many years. They map the risk management system in its entirety and are continuously optimised. The Group units Controlling as well as Governance, Risk Management & Controls (GRC) are responsible for central risk management and report directly to the Chief Financial Officer. Internal Auditing monitors the efficiency of the risk management system and also reports directly to the Chief Financial Officer.

The Group's business units and functional divisions determine the decision makers, communication and reporting paths, structures and risk owners involved in the risk management process. The risk owners at the level of the decentralised risk management organisations are equipped with adequate early-detection systems tailored to their areas, as well as analysis and reporting tools and monitoring systems. They are also responsible for implementing and executing appropriate controls and countermeasures.

All decentrally identified risks and the measures defined by the risk owners are also assessed at least once a year at the level of the central risk management organisation according to defined key parameters and condensed appropriately. The risk exposure determined in this way is reported to the Management Board and Supervisory Board to thus enable appropriate balancing of the risk situation and the earnings power and substance of the company. The implementation of agreed mitigation measures is monitored by carrying out the appropriate tests and audits.

1.2 RISK ASSESSMENT

Besides considering the risks in the installed planning, reporting, early warning and internal control systems, the organisational unit's risk owners regularly record all business-relevant and significant risks within the entire Group during the risk inventory, which is regularly conducted by the GRC department. To this end, they analyse the assessments of the managers responsible for the risks as well as further relevant information. The installed risk management system at Sixt thus records all relevant individual risks and their dependencies. Any changes in the risk assessment and new risks are communicated immediately to the Management Board of Sixt SE.

The probability of occurrence of an individual risk is estimated at various levels ranging from "highly improbable" (risk expected to occur once in significantly more than 50 years) to "highly probable" (risk expected to occur in up to and including 1 year) and the potential damage is also monetarily assessed in damage categories (from insignificant to significant). The individual risks recorded decentrally in this manner are reviewed centrally by the GRC department at Group level, condensed into a risk inventory and classified into risk groups based on defined criteria, such as probability of occurrence, and placed in a risk map. In addition, the GRC department monitors the Group's risk-bearing capacity. The risk portfolio determined on this basis and the Risk Report based on it are part of the reporting to the Management Board and Supervisory Board of Sixt SE.

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REPORT ON RISKS AND OPPORTUNITIES

1.3 INTERNAL CONTROL AND RISK MANAGEMENT SYSTEM FOR (GROUP) ACCOUNTING (DISCLOSURES IN ACCORDANCE WITH SECTIONS 289 (4) AND 315 (4) HGB)

The internal control and risk management system regarding the accounting process at the Group and the company includes organisational provisions and technical requirements to manage risks and propriety associated with accounting. Key elements here are the clear and appropriate separation of functions with regard to the Management Board and leadership responsibilities including management control processes, formalised delegation of key responsibilities, the central accounting and reporting organisation for all consolidated companies, the technical stipulations in the form of guidelines, working instructions, manuals, process descriptions and Group guidelines, the guarantee of controls in accordance with the so-called "four eyes principle" (two man rule), the implementation of quality assurance processes and control tests, effectiveness tests by internal auditing and external audit procedures and consulting, system-based security measures, manual control measures and regular comparisons with planning and controlling processes taking the form of target to actual comparisons and analyses of deviations. The GRC department continuously monitors the adequacy and effective implementation of the main measures through regular walkthroughs and tests. To guarantee the security of the data, the accounting-related systems have access restrictions and functional access rules. Employees receive appropriate information and training on data protection rules and regulations as well as information security. In addition, general behavioural provisions for employees relating to compliance or to financial matters are part of the regulations of Sixt's internal Code of Conduct.

The Supervisory Board examines the Annual Financial Statements and the Consolidated Financial Statements together with the Combined Management Report as well as the Dependent Company Report and discusses these with the Management Board and the auditor.

2. RISK SITUATION

As a company that operates internationally, Sixt is exposed to a variety of different risks, which can have material effects on the Group's business performance, net assets, financial position and results of operations. The following provides an

aggregate overview of the relevant risk factors. The structure of the risk categories outlined follows the categorisation in the reporting of the central risk management system.

The risk situation of Sixt Group at the end of financial year 2021 continues to be characterised by the uncertainties arising from the ongoing coronavirus pandemic and the conflict in Ukraine, which was escalating at the time of reporting. The travel and mobility market recovered significantly in most markets during the year. Nevertheless, the pandemic may have a short-term negative impact on Sixt's earnings and business operations, both on the demand side and operationally, through the emergence of new virus variants or regionally limited waves of infection and any associated travel restrictions and political measures, for example. The effects of the war in Ukraine are currently difficult to assess. While the direct effects on Sixt's business activities are limited from today's perspective, the consequences for the overall macroeconomic situation may have a negative impact on both the demand side and the operating result. Overall, however, Sixt assumes that the effects will be temporary, and that demand will stabilise in 2022. The special risks in connection with COVID-19, as well as the Ukraine war, are referred to separately in the following sections.

2.1 GENERAL EXTERNAL RISKS (ECONOMIC, SOCIAL, REGULATORY AND ENVIRONMENTAL RISKS)

Sixt Group offers private and corporate customers various international mobility services. Besides business activities in Germany, business activities in other European and non-European countries, especially in the US, are of great importance in light of Sixt's increasing internationalisation.

The business activities are dependent to a high degree on the general economic environment, particularly in Germany, Europe and in the US, as this has a major effect on the investment inclination and spending propensity of customers and, in turn, on the demand for mobility services.

During phases of economic weakness, demand for mobility services may fall due to cost-saving measures on behalf of companies and private households. Higher default risks (industry sector risks, counterparty credit risks, for example) can also generally be expected in these times. A downturn in the overall economy could therefore adversely affect demand and the profitability of the services offered. In order to enable a

Sixt SE Annual Report 2021

quick adjustment to economic conditions, Sixt relies on a structure of operating expenses that is as variable as possible. Sixt estimates 73% (2020: 67%) of its operating expenses as variable and 27% (2020: 35%) as fixed. Fleet expenses are considered fully variable, as they are directly related to the size of the fleet and can be adjusted at short notice, considering the length of the vehicle holding period. Depreciation on rental vehicles is also classified as variable in the same way. The degree of variability of personnel expenses is based on an assessment of the cost responsiveness of the individual functional areas. Other operating expenses show different cost sensitivities. While fleet-related expenses, commissions and impairments of receivables are considered variable due to their dependence on the size of the fleet and revenue development, expenses such as buildings, IT and communication expenses are classified as fixed expense items. In addition, there are expense groups with mixed cost character (e.g. miscellaneous other expenses and sales and marketing expenses).

Sixt also depends on developments in the areas of tourism and personal transport. In turn, developments in the latter are dependent on a variety of factors that Sixt Group cannot influence. These include, for example, the consequences of political decisions, the expansion of the public transport infrastructure, improvements in traffic flow and the coordination of the combined use of various transport modes. At present, the short and medium-term effects of the coronavirus pandemic on demand behaviour are hardly predictable. A permanent partial substitution of travel in order to hold face-to-face meetings by other virtual forms of communication cannot be ruled out. The extent of temporary or permanent effects on the tourism sector cannot be reliably estimated either.

Legal requirements relating to environmental protection, which are growing in importance above all in the European Union but also in other regions of the world, could, if combined with widespread public debate, also bring about changes in mobility behaviour. This could generally have both positive and negative effects on demand for the mobility services offered by Sixt. Climate and environmental risks could also have a temporary and localised direct influence on demand and business operations, through the loss of vehicles or the failure of rental stations, for example.

Moreover, alternative mobility solutions to traditional rental products, which are being promoted and brought to market maturity in particular in the start-up environment, but also by established car manufacturers' own business units, could have a lasting impact on demand.

To take account of the rapidly changing market conditions and customer demands, Sixt develops new product ideas and business models, whose market launch and penetration, also at an international level, may require high up-front investments. Relevant market analyses and plans cannot guarantee that these products will meet the expected acceptance and demand. This could negatively impact the Group's net assets, financial position and results of operations.

In addition, national and international developments such as political upheavals and revolutions, armed conflicts, as is currently the case in Ukraine, acts of terrorism, environmental disasters or even epidemics and pandemics could lead to a massive impairment of private and business travel and thus have a negative impact on the Group's business. Since the occurrence and effects of such events are difficult or even impossible to predict, consistently reliable forecasts regarding the development and demand for travel can only, if at all, be made to a very limited extent, even over the short term.

Moreover, Sixt is highly dependent on the development of the national used car markets. While Sixt constantly strives to mitigate the residual risks in vehicle fleets by concluding area-wide buy-back agreements, the risk of an adverse development in the residual value of vehicle fleets cannot be completely avoided. Thus, in individual markets or market segments, the possibilities to agree on buy-back agreements may be limited or economically disadvantageous.

Sixt's business activities are also affected by specific tax or regulatory frameworks. These include the taxation of company cars, which has been the subject of political discussions for years. The taxation of fuels, emission-based vehicle taxes or measures up to and including a possible complete ban on the registration of combustion engines may also have a material effect on customer's investment behaviour. In addition, Sixt is exposed to developments following the discussions regarding the compliance with emission limits, climate protection measures and potential local driving bans.

2.2 Specific risks of the mobility industry

The mobility industry continues to be dominated by intense predatory competition, both nationally and internationally. The

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trend in demand – mainly among corporate customers – towards large, mostly international vendors, that has been observed for years, continues. Due to its high share of corporate customers, it is essential for Sixt to provide customers with a global rental infrastructure that is available particularly in areas with a high volume of traffic, such as airports and train stations, in the same highest quality possible. Intense competition also creates the risk that individual market participants attempt to gain market share in the short term by consciously implementing an aggressive pricing policy, in some cases even accepting operating losses.

Individual competitors have initiated restructuring measures in connection with the effects of the coronavirus pandemic that are potentially capable of further increasing the intensity of competition.

General developments in the automotive industry are important to Sixt due to their effects on terms and conditions for purchasing vehicles and remarketing them. Sixt is highly dependent on the supply of popular vehicle models, to be able to purchase them on competitive terms and – for reasons of pricing certainty and the reduction of residual value risks – on buy-back agreements with manufacturers and dealers. These external factors influence both the purchase prices of vehicles and the revenue that can be generated when the vehicles are sold back.

By remaining vendor-neutral, Sixt can diversify risks when purchasing vehicles. The Group can select marketable popular models and negotiate favourable terms and conditions from a number of different manufacturers and dealers in each case, without having to take the specific sales interests of particular manufacturers into account. Sixt distributes its purchasing volumes across a number of suppliers and bases vehicle deliveries on intra-year demand planning. Flexible agreements with vehicle manufacturers and dealers enable the company to stagger vehicle orders over a period of time to a certain extent to meet the actual demand. This is especially important in times of great economic uncertainty and downturns, as well as in phases of increased demand, when the requirements for mobility services are even more difficult to predict. Specific supply agreements include the possibility for Sixt to react to unforeseeable fluctuations in demand at short notice to a limited extent. Further aggravation of disruptions to supply chains in international goods traffic or delays in vehicle deliveries, such as those recently observed in the

course of the semiconductor crisis and in connection with the war in Ukraine, however, can lead to the fact that a further increase in demand for mobility products can only be met to a limited extent in the short term or that vehicles can only be purchased at significantly less favourable conditions.

Furthermore, Sixt's international expansion changes its purchasing necessities. Sixt relies on having a broad supplier base in all corporate countries, whereby some vehicle fleets need to be tailored to specific regional needs. If Sixt would no longer be able to add a sufficient number of vehicles to the rental fleet to meet the respective demand or to offer enough vehicles with features that reflect the Group's premium orientation, this could adversely affect its revenue and earnings development. This would apply to an even greater extent if the Group's operating business were to expand dynamically, boosting demand for vehicles. In addition to any existing supply bottlenecks at car manufacturers, such a bottleneck would also be conceivable in the event of adjustments to the sales strategies of car manufacturers or as a result of changes in customs law or other protectionist measures or, at least locally, due to registration restrictions.

Sixt is keeping a very close eye on the debate regarding emissions, local driving bans and fleet requirements. Thus, it is likely that requirements relating to the equipment of the rental fleet with low-emission or zero-emission drives will change. As a result, logistics and infrastructure must also be adapted accordingly, by expanding charging capacities at stations, for example. In the short term, supply bottlenecks for relevant vehicle models cannot be ruled out. In addition, the purchasing conditions for vehicles can be influenced directly or indirectly by government measures such as tax incentives or penalties depending on the emission level and pollutant emissions. However, the company believes that it is in a position to adequately adjust the fleet mix in this case as well. An essential element of the business model is the short holding periods of the vehicles. In the case of passenger cars, these are usually around six months and in 2021, they were again well below 12 months, despite contract extensions.

Alongside general economic conditions, demand in the vehicle rental and car sharing business is also dependent on numerous external, unforeseeable random influences such as weather conditions or short-term changes in customers' mobility requirements and therefore difficult to forecast.

62 — Sixt SE Annual Report 2021

The combination of high economic capacity utilisation of the rental fleet and simultaneous vehicle availability is of great importance to the Group's success. Availability not only relates to the absolute size of the rental fleet but also to individual vehicle classes and types that meet customer wishes. Declining demand can result in a lower-than-expected utilisation of the rental fleet that is provided up-front, which in turn can affect the profitability of rental products adversely. This is why sophisticated, reliable and tried-and-tested fleet management tools are even more important. Sixt's internal yield management system -- a sophisticated IT tool that has been constantly updated over the years and that is tailored to the various requirements of the rental business -- enables the company to align its purchasing activities with demand and to manage the availability of vehicles at the individual rental stations. The yield management system is constantly optimised based on the volume of historic data generated from the rental activities that has constantly grown over the years. Systematic fleet and supply management achieves the highest possible level of fleet utilisation. Through the increasing integration of carsharing and traditional rentals, Sixt will be able to further optimise the profit-oriented management of its fleet in the future.

The developments on the used car markets, especially in Germany and the US, are important for the prices Sixt generates from selling rental vehicles on the used car market. Over the course of 2021, the price level on the used car market increased significantly in all countries. As the supply shortage responsible for this is expected to continue into 2022, Sixt assumes that the used car market will remain stable overall. Negative effects cannot be ruled out in the event of a normalisation of the market situation, however.

Sixt seeks to hedge the remarketing of rental vehicles as far as possible through buy-back agreements with manufacturers and dealers to mitigate the risks associated with the sale of vehicles. This means that buy-back conditions for these vehicles are already fixed at the time of acquisition. The company therefore has a more reliable basis for calculating the development of its fleet costs. By reducing the resale risk, Sixt is to a large extent independent of the situation on the used car market. However, market-specific aspects, especially in the growth market of the US, and a possibly necessary adjustment of the purchasing strategy due to supply bottlenecks could lead to repurchase agreements not being enforceable to the desired extent. This is particularly true in the growth market of the USA, where buy-back agreements are less common than in Europe. Around 85% of all vehicles added into the rental fleet in the financial year were secured by means of buy-back agreements in the case of purchased vehicles or under operating lease agreements.

In this context, however, it cannot be completely ruled out that contractual partners may not be able to comply with the buy-back agreements and Sixt is thus forced to market the vehicles itself. In this connection, as for all freely marketed vehicles, there is a risk that Sixt may generate lower revenues than expected due to economic risks or a possible deterioration of the used car markets.

Hence, Sixt regularly assesses the creditworthiness of its contractual partners according to strict standards. This is especially important when the automobile trading markets are tense, so that the risk of contractual partners not meeting their buy-back agreements can be detected early on and to provide for the risk appropriately. In the case of a contractual partner defaulting, Sixt would be obliged to market the vehicles on the used car market at its own economic risk, through its own stationary dealerships (Sixt Car Sales) or otherwise.

2.3 Financial Risks

The operating business, especially the rental assets, is financed mainly through bonds, borrower's note loans, a syndicated loan, short-term financing facilities from several banks, short-term debentures (so-called commercial papers) and, especially for vehicles, by concluding leasing contracts. Sixt has maintained close business relationships with a large number of banks for many years. Sixt Group continues to have a broad and solid financing structure with an adequate financing framework. The Group's credit lines were only partially utilised in the reporting year.

Sixt Group is exposed to various financing risks. These include interest rate risks and exchange rate risks, which can be limited using derivative financial instruments, among other methods.

Due to the changes in the credit industry that continue to be seen, as a result of increasing capital requirements in the lending business or changed risk weightings, for example, the financing behaviour of banks could change permanently. Sixt Group is exposed to the risk of not being able to obtain financing from banks or other creditors (e.g. through the placement

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of borrower's note loans, bonds or short-term commercial papers) on commercially reasonable terms or at all considering the current or future market uncertainties. It could become more expensive, more difficult or even impossible for Sixt Group to enter into financing arrangements (including those mentioned above), depending on, among other factors, general market conditions and the assessment and evaluation of the creditworthiness of Sixt SE and its subsidiaries. The same applies to the ability and willingness of the capital markets to absorb funds, which may be temporarily or permanently restricted, if necessary, also only in sub-segments. In addition, the interest rate increases emerging as of the balance sheet date could lead to higher interest charges with regard to financing with variable interest rates and increase the costs of follow-up financing. The fact that the residual values of the vehicles in the rental fleet are largely covered by buy-back agreements, which considerably increases the security for the financing banks, also had a positive effect on the risk profile in the reporting year.

Since banks depend on the market situation and have no choice but to accept increased risk premiums when they refinance their own activities, it cannot be ruled out that these higher premiums will be passed on to customers who take out loans. Moreover, the increasingly tighter legal regulations, which financial institutes must comply with when granting loans, require that they underlay these with more equity. This could result in Sixt Group's financing costs increasing.

The vast majority of trade receivables and payables are due in local currency in the country where the respective Group company is based. As a result, the Sixt Group is able to neutralise the exchange rate risk in part through natural hedges. However, the Group's external financing is mainly in euros, so that exchange rate risks arise primarily from receivables and liabilities for the financing of subsidiaries in non-euro countries. Currency swaps or other currency derivatives are used in particular to limit these exchange rate risks within the Group.

Sixt is subject to counterparty risk in the corporate customer segment and, to a limited extent for some products, also in the private customer segment. This occurs if invoice customers are unable to meet their payment obligations or credit card payments are not received. Insofar as customers are provided with a rental contingent on account, their creditworthiness is checked and monitored on the basis of internal guidelines. Furthermore, when investing bank balances, Sixt is subject to

the respective counterparty risk of the account-holding bank or the counterparty of the investment transaction.

2.4 INVESTMENT RISKS AND TRADEMARK RIGHTS

Due to its shareholdings in various subsidiaries, Sixt SE is subject to investment risk in Germany and abroad.

In the course of the sale to Hyundai Capital Bank Europe GmbH, Allane SE (formerly Sixt Leasing SE) was granted the use of trademark rights for a limited period of time. There is therefore a potential risk that the customer or supplier perception of the Sixt brand could be influenced by disadvantageous communication without the direct influence of Sixt Group.

2.5 STRATEGIC RISKS

Sixt intends to continuously increase both its revenue and its market share through expansion, particularly in the US and in important Western European countries. This goal is to be achieved primarily through organic growth. Especially for growth abroad, moderate acquisitions cannot be ruled out, however.

Such transactions or market entries are associated with greater uncertainties due to the necessary investments, marketing and sales expenses, but also due to deviating constellations on procurement and sales markets. Despite the potential analyses carried out, it cannot be completely ruled out that such transactions could result in misjudgements that could have a negative impact on the Group's net asset, financial position and results of operations.

The internationalisation strategy also involves various risks, including market-specific, political, legal, fraud, financial and personnel risks. These include possible misjudgements of the market conditions in the respective countries, changes to national legal or tax frameworks, the costs of building up an efficient business organisation and the need to find qualified management personnel and employees. In addition, there are the usual transaction-related risks in the case of acquisitions. The establishment and expansion of foreign activities can lead to a deterioration in the Group's net asset, financial position and results of operations. The failure or delay of foreign expansion could also have a negative impact on existing customer relationships, as business and corporate customers are increasingly demanding mobility services with an international scope.

64 — Sixt SE Annual Report 2021

Sixt has a nearly global network of franchisees. Customers are also referred to Sixt corporate countries via this network. As a franchisor, Sixt maintains intensive, generally long-standing and trusting relationships with its franchisees. Nevertheless, it cannot be completely ruled out that the termination of such contractual relationships would temporarily or permanently change the geographical coverage of the Sixt offering in a particular region and limit the attractiveness of the offering for customers. There is also a potential risk that customer or supplier perceptions of the Sixt brand could be influenced by adverse communications without direct influence from the Sixt Group.

6 OPERATIONAL RISKS

Operational risks are understood as the risk of a loss caused by human behaviour, individual mistakes, technological failure, inappropriate or faulty processes, in payment processes, for instance, or external events. Such a definition of operational risks involves regulatory, legal and tax-related risks.

The coronavirus pandemic poses risks for the operation of the station network and for central functions. It still cannot be completely ruled out that local or national sites will have to be closed at least temporarily due to the infection or political decisions.

Complex, high-performance IT systems are essential for processing rental transactions. Hardware and software-related system malfunctions and failures can considerably affect operating processes and, in serious cases, even bring them to a standstill. When implementing new, replacement or supplementary software, the high complexity of the IT systems places high demands on compatibility to existing systems so as to guarantee smooth continuation of the operating business. At the same time, Sixt is carrying out a number of strategic projects in the area of software development, the failure of which could have an impact on the Group’s business operations or earnings. Besides these internal operational risks, there is also the risk of targeted external attacks on Sixt’s IT infrastructure and the company’s inventory of data (ransomware, hacking, DDoS attacks, etc.). To counter these risks, Sixt commissions its own IT department with carrying out ongoing monitoring, servicing and further developments, and with protecting the availability of all of the Group’s IT systems and data.

As in the past, Sixt Group intends to continue investing in Internet-based as well as mobile services for smartphones, tablet PCs and other devices as a sales and communications channel for its mobility products and as a basis for further business models. A number of risks associated with this (e.g., uncertainty regarding the protection of intellectual property or registered domains, possible violation of data protection, dependence on technological conditions, system failures, viruses, spyware, etc.), could affect the use of the Internet or mobile services as independent and cost-effective sales and communications channels.

However, general usage of such systems is constantly increasing and thereby fundamentally changes consumer behaviour. Accordingly, it should be noted that customer use of such offerings and products of Sixt Group has been continually increasing for years. Against the backdrop of media convergence, in particular, i.e. the convergence of different technical devices and services and the ever-increasing presence of online services in everyday life, one may safely assume that the utilisation of such offers is set to continue in future.

As Sixt continues its efforts to further expand its position as an innovative mobility service provider, more and more established business processes will gradually be digitalised and automated. This technological development generally entails increased risks, such as temporary system failures or increased external attacks.

Sixt has therefore implemented an information security function, which together with the operating IT departments, is tasked with ensuring the protection and security of the technological platforms and Internet-based sales channels.

The rental business also involves the risks of loss and resulting financial losses, e.g., the risk of theft and misappropriation and accidental damage of vehicles. This risk could increase due to the expansion and development of new markets. In addition, the increase in theft, which is partially covered by insurance policies, could lead to an increase in insurance premiums. If Sixt were unable to take appropriate technological or organisational preventive measures in the future, this could have an adverse effect on its net asset, financial position and results of operations.

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Some of the vehicles in Sixt Group's fleet are subject to manufacturer recalls. In particular, if a large number of vehicles were to be affected at the same time, this could lead to a limitation or inefficiency of Sixt Group's fleet and, as a result, to adverse effects on Sixt Group's results of operations. Sixt Group could also face liability claims if the company is unable to implement such recalls.

Sixt's activities involve entering into many different contractual agreements. This is only possible by using standardised agreements that must be matched to the operational processing systems accordingly. Consequently, even minor inaccuracies in the wording or changes in the legal framework could have a material effect on business activities. Sixt counteracts the resulting risks via contract management by also involving legal experts and using various system controls.

Sixt Group also relies on intellectual property rights to protect its business activities. Preserving these rights at both the national and the international level is one important precondition to remaining competitive.

The personal know-how and skills of the Group's employees constitute an important success factor. Particularly in times of expanding business operations and the associated recruitment of new staff, Sixt depends on having a sufficient number of qualified and motivated employees who are able to perform the required work to the required quantitative and qualitative standard. If, for instance, there is greater fluctuation and therefore a loss of know-how, this could affect the quality of service in the car rental business or the effectiveness of operational or administrative processes. Sixt guards against these risks through increased involvement in training and professional development by firmly establishing staff development as part of its company culture and by offering incentive systems.

Strategic partnerships and cooperative ties with airlines, hotel chains, booking portals and other key players in the mobility and tourism industry represent an important factor in Sixt Group's success. The contracts with these partners often contain short notice periods and are – with a few exceptions – nonexclusive. Therefore, it cannot be ruled out that existing cooperative ties will be terminated or cannot be expanded due to changes in market conditions or to the partners' marketing or business strategies. In addition, there is a risk that more unfavourable conditions could arise for Sixt due to concentration risks. However, many of these partnerships have been in place for many years and are based on a spirit of long-term and trustworthy collaboration. In addition, Sixt permanently adds partners from different industries to its network.

As an international company, Sixt's business activities are generally subject to a large number of legal, tax and official provisions and regulations as well as individual agreements with business partners. Operational errors could result in punishable violations, regulatory audits or disputed matters that may have to be settled by a court of law. At the same time, Sixt Group is subject to a wide range of different legal constellations and consumer protection regulations, also as a result of its international expansion. There is a risk that it could fail to meet all regulatory requirements or to react in time to changes in the regulatory environment.

Provisions have been recognised in the balance sheet to the extent deemed necessary by Sixt Group.

2.7 RISKS RELATED TO THE CORONAVIRUS PANDEMIC

The further development of the coronavirus pandemic is still subject to uncertainties, both in terms of its duration and its effects, despite sometimes effective countermeasures and vaccinations. If the virus spreads more rapidly again, due to the emergence of new mutants, for example, and the measures to contain the virus need to be intensified or permanently extended, in particular the economic risks could increase again. This could lead to another decline in demand for Sixt Group's mobility products and a deterioration of its net asset, financial position and results of operations.

The semiconductor crisis, which was also triggered by the pandemic, and the reduction in production capacities already led to supply bottlenecks in the new vehicle market in 2021. These were partially compensated for by an overall high price level in the car rental industry. However, a possible prolonged and/or worsening shortage of vehicles in 2022 could lead to a situation in which the possible further recovery in market demand cannot be fully met at an adequate price level.

Overall, one can assume that insolvency rates will increase in 2022 in view of the lasting effects of the crisis, and thus business partners and value chains could be affected. As this could also affect the receivables portfolio, Sixt continues to monitor the associated risks very closely.

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The current macroeconomic situation in all regions of the world caused by the coronavirus pandemic could also have a fundamental impact on the willingness or ability of banks and capital market participants to provide funding at attractive conditions and/or in sufficient amounts. Sixt Group has a strong capital base and sufficient financial resources as well as long-standing stable business relationships with its financing partners, however.

RISKS RELATED TO THE WAR IN UKRAINE

With the invasion of Ukraine by Russian forces on 24 February 2022, the long-standing conflict between Russia and Ukraine escalated into war. In addition to the human suffering and a humanitarian crisis, this drastic event has already led to tangible effects on the goods and financial markets within a short period of time. In addition, strict sanctions were introduced against Russia and partly Belarus, which are leading to feedback effects worldwide.

Sixt is active in the affected countries to a lesser extent via franchisees, agency/service partners and a development centre in Ukraine. The direct economic and operational effects of a possible lasting military conflict are therefore limited from today's perspective, as are the direct effects of sanctions and embargo measures.

However, there is a considerable risk that the possible indirect consequences could have a negative impact on the Group's net asset, financial position and results of operations. The disrupted supply chains and missing components from the production sites of suppliers and car manufacturers in Ukraine and Russia could cause a further reduction in the production of new vehicles and Sixt may not be able to procure the desired number of vehicles as a result. A persistently high level of fuel prices may lead to a decline in demand for mobility products. It is also to be expected that insolvency rates will be negatively affected, especially for companies in affected sectors such as energy- and commodity-intensive industries. Sixt is intensively analysing the resulting counterparty default risks.

It can also be assumed that there will be negative macroeconomic effects on the global economy and the European economy in particular. Significant price increases for energy, but also for all energy-intensive products, as well as waves of refugees can significantly slow down economic growth and lead to a lower willingness to spend among private and business customers. In addition, there is the risk of a further geopolitical deterioration with unpredictable effects.

Overall, Sixt is well prepared for crisis situations thanks to the high flexibility of its business model and solid financing. However, the possible effects of the crisis cannot be estimated in terms of duration and scope at this point in time.

MANAGEMENT BOARD'S ASSESSMENT OF THE OVERALL RISK PROFILE

Sixt SE has installed a Group-wide internal control and risk management system designed to identify all developments that could lead to significant losses or endanger the continued existence of the Group at an early stage. As part of the established risk management system, all risks listed here are reviewed and analysed regularly and the probability of their occurrence and effect is assessed. The result is communicated to the Management Board and Supervisory Board so that the necessary countermeasures can be initiated if necessary.

Both the overall risk and the risk profile of Sixt Group as well as Sixt SE have remained essentially unchanged from the previous year apart from certain risks intensified by the coronavirus pandemic and the war in Ukraine. At present, no risks have been identified, which individually or in their entirety, could endanger the company as a going concern.

OPPORTUNITIES REPORT

As an international mobility service provider, Sixt Group pursues a consistent premium strategy. This means it offers high-quality products and services, such as those related to the vehicle fleet, or flexible bookability for the differentiated requirements of its customers in more than 100 countries of the world. A number of strategic and operational opportunities are open to Sixt given its solid competitive position, broad range of services, industry environment and in-house power of innovation, all of which can have a positive effect on its business development.

Sixt defines opportunities as the possibility of achieving and/or exceeding the company's intended objectives through events, developments or actions. It remains an ongoing undertaking to identify these opportunities for the individual operational areas and to utilise them in line with the company's strategy.

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4.1 MARKET OPPORTUNITIES

Economic development

In its business development, Sixt Group is to a certain degree dependent on overall economic conditions. This holds true in particular for the economic situation in the twelve Sixt corporate countries. Since increasing economic dynamism generally leads to both a higher willingness to invest on the part of companies and a larger spending propensity on the part of private individuals, there is a chance in both cases that the demand for high-quality mobility solutions will rise.

In its plans for the current financial year 2022, Sixt Group makes due allowance for the economic analysts' expectations for general economic developments, as outlined in the Forecast Report, as well as the experts' assessments on the further course of the coronavirus pandemic. In the event that the course of the pandemic and the economy develop worldwide or in key individual markets as forecast or even better, this could lead to higher demand for Sixt's products and services.

Furthermore, a continued high level of market prices for rental cars could also continue to have a beneficial effect on the Group's revenue and earnings development. The main drivers for the increased market price level in the second half of 2021 were, on the one hand, the high demand for mobility offers as well as the semiconductor shortage and the resulting vehicle shortage, but also structural catch-up effects in the price development. For example, while average prices for new cars in Germany rose by nearly 30% between 2010 and 2019, the price level for rental cars remained virtually stable over the same period. As the above-mentioned general conditions are expected to continue, at least in part, in the coming year, an increased market price level is also expected for the current financial year 2022.

Source
Statista.com, Average new car prices in Germany from 1980 to 2020, February 2021

Growing popularity of Shared Mobility

Mobility remains an essential human need and an important pillar of global trade, regardless of the advancing climate change or the ongoing coronavirus pandemic. Mobility brings people and goods together and thus enables economic growth and innovation. In this way, mobility also improves the quality of life and the development of every individual. Furthermore, services in the field of mobility are of high economic importance and a growth driver. As a result of advancing

climate change and the global trend towards urbanisation, however, mobility is currently in a state of upheaval. More and more municipalities are adapting their mobility plans and increasingly focusing on a reduction of individual car traffic in favour of solutions from the area of micro-mobility, i.e. getting around with non-motorised or electrically powered micro and light vehicles such as rental bicycles or e-scooters, or the area of so-called Shared Mobility. This term covers all publicly accessible means of transport that are used jointly and are available at short notice and as needed, usually for a fee, without being owned by a user. Sixt is active in this area with a broad portfolio as a car rental and car sharing provider and can expect to benefit from the expected strong growth of the Shared Mobility market in the future. The United Nations (UN) estimates that the number of cities with more than ten million inhabitants (so-called mega-cities) will increase from the current number of 33 to 43 by 2030. By 2050, the UN expects that around 68% of the world's population will live in cities. According to a study by Arthur D. Little published in February 2021, 41% of car owners worldwide say the political climate and environmental activism have caused them to rethink car ownership.

Source
Arthur D. Little: The Future of Automotive Mobility, February 2021

4.2 COMPETITIVE OPPORTUNITIES

Value-creating acquisitions

Sixt Group generally pursues the objective of driving its expansion in relevant markets forward through organic growth. This does not, however, preclude the acquisition of local and regional competitors, should the conditions prove to be favourable. To this end, Sixt is permanently reviewing relevant market opportunities to accelerate the Group's growth. The ten airport stations acquired in the previous year from the insolvency of a competitor in the US have all been open since September 2021 and offer great potential for further market share at airports in the US.

From a strategic perspective, the expansion of customer groups as well as winning over attractive market segments, such as the acquisition of airport concessions are key criteria when assessing potential acquisitions. From a technological perspective, the focus is on innovation potential, primarily with a view to the further digitalisation of Sixt's business model. All potential acquisition candidates must meet very strict criteria regarding their earnings situation, their risk profile, the quality

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of their management, their company culture and their compatibility with Sixt's business model and premium strategy.

Opportunities thanks to a tense competitive situation

Sixt is active in international markets that have been dominated by intense predatory competition for years. In the past, one has often seen competitors pursue an aggressive pricing strategy, which only covers operating costs to a limited extent or not at all in the long term and leads to losses, especially in economically difficult situations.

In the previous year, the coronavirus pandemic and the associated travel restrictions had exacerbated the situation of many competitors in the mobility market, including large companies, in some cases significantly. From the second half of 2021 onwards, the semiconductor crisis made it increasingly difficult to buy vehicles from manufacturers to the desired extent. Following the financial restructuring of a few major competitors, further consolidation is now conceivable, particularly when it comes to local suppliers. Should competitors be forced to discontinue or reduce their business operations, Sixt Group could close possible supply gaps and secure targeted market access and quotas.

Growing demands on mobility

Sixt has been pursuing its premium strategy already for many years, underscoring its claim of offering its customers top-quality products and services. One key element of this is to offer a fleet of vehicles from renowned manufacturers with state-of-the-art extra features and options. In Sixt's experience, demand for premium brand vehicles is comparatively high. Another significant aspect is the premium approach to rental stations. In the coming year, Sixt plans to spend a record amount on renovations and new buildings in order to continue to ensure a holistic premium experience for customers. Provided that the economic situation of companies and private households develops positively and customers' demands on their mobility continue to rise, premium vehicles and services could be in above-average demand. Sixt Group in particular would benefit from such a development.

Demand-generating marketing

In the advertising industry the term "Sixt ads" has become a concept in its own right. This is due to marketing campaigns that have been causing a sensation for decades, lending the brand high recognition value and conveying its values.

In the future, wide-reaching advertising and marketing campaigns will continue to be the key means to raise awareness of the Sixt brand especially on an international scale and support the economic growth of Sixt Group. To this end, Sixt is deploying a wide range of media with a special focus on social media channels that enable direct and very timely addressing of target audiences and direct interaction with customers. In addition, the company also uses other communication and advertising channels, depending on the goal of the advertising.

This offers opportunities in particular through investments to increase brand awareness in the US growth market.

Ongoing internationalisation

Sixt Group is pursuing its objective of expanding its international presence and winning over additional market shares in the respective countries. To this end, the company collaborates with franchise partners in many national markets. At the same time, the Group permanently reviews measures to increase market shares in existing countries, either by changing the network of franchise partners, setting up its own structures or by tailoring specific mobility offers for respective markets.

The expansion into Australia announced in December 2021 through the strategic partnership with the National Roads & Motorists' Association creates a good basis for Sixt to exploit the continent's immense market potential (with a market volume of over one billion euros). Furthermore, the partnership is another significant step in the consolidation of the international network. Sixt Group now has nationwide presence in the Asia-Pacific market. For its market entry in Australia, Sixt offers one of the country's largest electric rental fleets and thus not only meets customers' desire for environmentally friendly electric mobility, but also contributes to a sustainable change in transport on this continent.

Further growth opportunities are associated specifically with the US market. At the end of the reporting year, Sixt was represented at nearly all major US airports and is now targeting further growth opportunities – in the short term particularly in the business customer segment, and in the medium term also in the commercial vehicle market (Vans & Trucks). In addition, marketing measures offer the Sixt Group the opportunity to decisively increase brand awareness in the USA in the coming year. As the world's largest car rental market, the US also offers Sixt significant growth potential through increasing consolidation. Sixt aims

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to develop the US into the strongest market for the Group in terms of revenue.

Opportunities from innovation

SIXT app as a preferred mobility tool

The in-house mobility platform ONE with the SIXT app constitutes the digital core of all Group activities. The app integrates Sixt Group's mobility solutions and makes them internationally available to customers. The SIXT app offers customers simple processes, whether it be booking and invoicing of business trips, including current payment methods, or the connection to corporate travel portals.

By combining offers from different mobility services in one digital platform, Sixt holds a competitive edge that has great attractive appeal for third parties and potential partners. There is an opportunity that yet other mobility partners will want to integrate their products and services into the platform and thereby make the SIXT app an even more sought-after tool for customers when they plan and organise their trips and mobility in general. This in turn would increase the Group's growth and increase awareness of the Sixt brand.

Integrated mobility services

With its mobility platform ONE and the SIXT app, the company is able to offer customers tailor-made one-stop mobility solutions that cover an entire area, are suited for every situation and independent of time and location. Customers can freely choose whether they want to pick up the vehicle at the next rental station (car rental), step into the next available car parked along the road (car sharing), call a taxi or transfer service (ride hailing) or generally use a longer-term mobility service (car subscription). By integrating several products into only one app, the traffic is fundamentally increased and the attention for all products is increased.

With its integrated solutions, Sixt is taking due account of individual and contemporary mobility. The mobility mix provides more free space in cities and at the same time offers cost-effective, sustainable alternatives to owning a car. At the same time, Sixt is strengthening its position as the mobility industry's innovation leader and at the same time generating countless opportunities such as increased cross-selling opportunities and the expansion of its target audiences: for example, customers who have only used SIXT rent via the SIXT app so far can now use the same tool to access the services of SIXT share for short-term mobility needs or SIXT+ for their longer-term mobility needs. This constitutes a significant advantage over the still very fragmented offers of the competitors for car rental, car sharing, transfer services and car subscriptions.

Services offered online and via mobile channels

The essential tools for planning and booking both business and private trips are technical interfaces such as the computer, tab- let or smartphone. Customers receive easy and flexible access to flights, hotels, taxis, rental cars and car sharing via these de- vices and the respective websites and applications. This is why Sixt developed user-friendly online and mobile solutions early on that are continually upgraded and enhanced by adding new and practical features. Moreover, the company integrates its various products and services into the booking procedures of hotels and airlines and thereby extends the reach of its services. Examples in the reporting period include the newly concluded strategic partnerships with the software provider for driver's logbook and fleet management Vimcar (March 2021), the Global Travel Wellness Club Sanctifly (June 2021), Small Luxury Hotels of the World (August 2021) and Dezerved (September 2021) or the expansion of the current partnerships with Booking.com and Google. Since June 2021, SIXT ride services can be booked in advance and on demand via the Booking.com travel platform and since October 2021, SIXT ride has also been integrated on Google Maps in Amsterdam, Rotterdam, The Hague and London, after many German cities. Should the use and volume of online bookings exceed expectations, this would have a positive effect on Sixt Group's business.

Sixt uses its own channels, such as the SIXT app, the SIXT blog or its extensive social media presence, as well as various online and offline marketing channels for international communication and promotion of its many different services. Against the backdrop of event-driven communication and marketing opportunities, the company is testing new potentially suitable platforms and working together regularly with influencers. These activities offer the opportunity of addressing target audiences in a highly targeted manner and further raising Sixt's popularity.

SIXT rent

The SIXT rent product category offers customers a digitalised rental process that allows them to reserve the vehicle of their choice via the app and immediately access the car without a

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key or needing to visit a counter. SIXT rent furthermore provides the means to make vehicles available irrespective of fixed stations as they can be found in parking spaces in front of hotels or shopping malls. Digitalising the rental fleet will thus potentially densify the contact points between Sixt and the customer, which in turn would open up additional growth opportunities. At the same time, the digitalisation of stations and rental processes – also through the use of artificial intelligence in pricing and fleet management – offers opportunities to generate additional revenue and cost savings.

SIXT share

SIXT share combines the traditionally separate products of car rental and car sharing into one integrated product. By networking both vehicle fleets, Sixt can balance out fluctuations in demand between car rental and car sharing and provide customers with optimal availability at all times. At the same time, this optimises the utilisation of the fleet, resulting in cost and efficiency benefits. Through networking, it is also possible to expand car sharing to the surrounding areas, and not to be limited exclusively to metropolitan regions as in the past, since the vehicles are not rigidly assigned to a location or business area, but can be used depending on demand. This opens up further growth potential for Sixt. The company is the first car sharing provider to have already opened up several communities near Munich, thus offering even more people in suburban areas a range of flexible, modern mobility options and at the same time making a contribution to the mobility revolution. Already today, around one third of the SIXT share car sharing fleet consists of electric vehicles and offers further possibilities for low- $\mathrm{CO}_{2}$ mobility through the integration of e-scooters and, since August 2021, e-mopeds. Since December 2021, the new "Car Radar" function in the SIXT app has supported customers in finding and reserving SIXT share vehicles. By activating "Car Radar," customers receive a notification as soon as a vehicle becomes available in the selected area and the car is automatically reserved.

SIXT+

SIXT+ offers customers a car subscription model at fixed monthly rates. Given the cost benefits and the trend towards using instead of owning a vehicle, the market for car subscriptions is expected to see substantial growth rates. According to forecasts, the car subscription model could clock up a market share of up to 40% by 2030 with German private customers. By integrating SIXT+ into the SIXT app, the company is creating an opportunity to benefit from this growth far more than average, and to reach customer groups that can also be introduced to further services and offers provided by the Group. In order to take into account the desire for synchronisation of usage and pricing of modern mobility customers, Sixt has granted its regular SIXT+ customers the option to temporarily pause their car subscription at the end of November 2021. Thus, subscribers can save money while their contract is dormant and additionally receive a subscription credit of up to EUR 100 per paused month. This increased flexibility on the customer side goes hand in hand with the possibility for Sixt to efficiently rent out the vehicles to other customers during this time. In line with the sharing concept, this increases the utilisation of the vehicle fleet and thus optimises the sustainable use of resources. In the long term, this approach leads to a reduced number of vehicles required by subscribers overall.

Source

Automobilwoche, Study: Market share of subscription model could reach 40% by 2030, 31 August 2020

SIXT ride

SIXT ride unifies multiple flexible mobility services such as air- port transfers or limousine services and also integrates offers from such partners as taxi providers. SIXT ride can therefore offer a nearly worldwide network for ride hailing. Demand for such on demand driver services is set to expand dynamically over the mid- to long-term, especially in larger cities and metropolitan areas, in which strong demand is expected. Sixt's strategy is to open up the access to its platform ONE to additional mobility service providers in order to expand and upscale its mobility services globally. The platform ONE is designed to make the integration of additional partners as swift and uncomplicated as possible. This provides an opportunity to make new products available to customers and achieve continually higher market penetration. With the integration of sustainable hybrid and fully electric vehicle models, SIXT ride has also been offering a $\mathrm{CO}_{2}$-saving option for journeys from A to B in many cities and regions since October 2021. In addition to Berlin and Munich, the respective models are available in many other European cities.

As part of the IAA Mobility in September 2021, Mobileye, a subsidiary of Intel Group, and Sixt announced that they will jointly offer an autonomous ride hailing service in Munich starting next year. Mobileye will own the fleet, while Sixt will provide, maintain and operate the vehicles. The self-driving cars can also be ordered via the SIXT app in the future. This strategic

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cooperation is the next step in the expansion of the mobility platform ONE and underscores Sixt's development into a leading provider of innovative and digital premium mobility.

SIXT truck

Sixt considers the Vans & Trucks rental market to be another at- tractive growth area, particularly in the area of light and medium commercial vehicle rental. The company registered profitable growth in this market segment in previous years and has established itself as one of the leading providers for Vans & Trucks in the German-speaking region in the weight category below 7.5 tons. A noticeable increase in demand for these vehicles is still expected, for example due to the strong growth of online trade as well as the penetration of further profitable business customer segments and their continuous professionalisation of fleet management. Sixt plans to improve the customer experience in terms of service and flexibility through the consistent digitalisation of the fleet, the adaptation of service processes and product specifications to specific customer requirements and the connection of the product area to the mobility platform ONE. Significant synergy effects can be realised between the rent and Vans & Trucks segments. Since Sixt is currently still a niche player in this market segment in many European countries and the local markets are often highly fragmented, there are considerable growth opportunities for the future. Sixt has set itself the goal of gaining further market share in Europe and significantly expanding the Vans & Trucks fleet in Europe – also across a wider range of vehicle types and specifications. For example, so-called Truck Competence Centres were opened in financial year 2021 to cater to the special needs of professional Vans & Trucks customers. In the medium term, Sixt aims to expand its network to more than 50 Truck Competence Centres in Europe and to extend its Vans & Trucks business to the US. According to Sixt's estimates, the Vans & Trucks rental market has a significant market potential of over USD 10 billion and thus offers considerable medium and long-term growth opportunities.

Special services for corporate customers

Sixt already offers corporate customers solutions developed specifically for their requirements and tailored to their needs. In addition to SIXT unlimited, this includes other individual mobility concepts such as SIXT long-term flex. These products take into account the "pay-as-you-use" concept as well as the factors of cost control, flexibility, individuality, sustainability and digitalisation. Sixt is thus expanding its product portfolio with an innovative and sustainable mobility solution. Several major customers have already been signed up for the product and Siemens is the first customer to use SIXT long-term flex exclusively with electric and hybrid vehicles. Sixt assumes that the acceptance of products tailored to the needs of special target audiences will continue to increase. This will offer the opportunity to convince corporate customers of Sixt Group's services in the long term and thus to also arouse interest in the Group's other offers.

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B.7 COMBINED NON-FINANCIAL GROUP DECLARATION PURSUANT TO SECTIONS 315B AND C IN CONJUNCTION WITH 289B TO E OF THE GERMAN COMMERCIAL CODE (HGB)

1. SUSTAINABILITY AT SIXT

Thinking and acting sustainably are important reasons why Sixt is such a successful company. Doing business sustainably means doing business in a way that seeks to balance the interests of all stakeholders involved in and affected by the business process. In this way, Sixt assumes responsibility towards society and contributes toward ensuring that future generations can also live in an intact social, economic and ecological environment. Sixt's main contribution to this is the qualitative development and quantitative expansion of so-called Shared Mobility, i.e. the shared use of vehicles or vehicle fleets (see section 3.1). The Regine Sixt Children's Aid Foundation is the company's official corporate social responsibility programme and underscores Sixt SE's social responsibility. (see section 3.6).

1.1 ENTREPRENEURIAL SELF-IMAGE

Sixt Group is a global provider of high-quality mobility solutions. Through its customised products and services, Sixt provides private and business customers with mobility tailored to their individual needs, with the idea of Shared Mobility at the heart of the product offering. Besides the rental of premium vehicles, the services also include car sharing offers, car subscriptions, chauffeur services and other integrated offers from third-party vendors via the mobility platform ONE. Holistic mobility concepts, a high level of service and technological innovations combined with a premium fleet are important distinguishing features of Sixt in competing internationally (please refer to the section entitled "Principles of the Group" in the Combined Management Report for a detailed description of the business model and company structure).

The fundamental principle of Sixt Group is the harmonisation of social mobility needs and the fulfilment of global sustainability goals. Here, the fight against climate change is a top priority for Sixt Group. The main focus is on reducing $\mathrm{CO}_{2}$ emissions in the mobility sector in order to support the goals of the Paris Climate Agreement to achieve the 1.5 degree target.

1.2 PRINCIPLES OF REPORTING

The Combined Non-Financial Group Declaration of Sixt for financial year 2021 included in the report on the position of the Group and the company has been prepared in accordance with the disclosures required by Sections 315b and c in conjunction with Sections 289b to e of the German Commercial Code (HGB) and Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on establishing a framework to facilitate sustainable investment and amending Regulation (EU) 2019/2088 (hereinafter the EU Taxonomy Regulation). The Non-Financial Group Declaration contains the information required by the CSR Directive Implementation Act on material environmental, employee and social matters, respect for human rights and the fight against corruption and bribery. The reporting on other material fields of action and topics results from their materiality for Sixt Group.

Due to the broad range of sustainability measures at Sixt Group, the respective results are not reported in full, but only in selected form. In accordance with Section 315b (1) sentence 3 of the German Commercial Code (HGB), reference is also made to non-financial disclosures on individual aspects covered elsewhere in this report. The Combined Non-Financial Group Declaration also reports material risks in accordance with Section 289c (3) 3 and 4 HGB, insofar as the disclosures are necessary for an understanding of the course of business, the business results, the position of the Group and the company and the effects of their activities on non-financial matters.

In accordance with Section 289c (3) no. 5 HGB, there are no non-financial performance indicators that are of material importance for the business activities of Sixt Group. Sixt Group is managed primarily by means of financial key figures and performance indicators. Key performance indicators are listed in the section "Principles of the Group" in the Management Report. There is no direct connection between the figures reported in the Consolidated Financial Statements of Sixt SE pursuant to Section 289c (3) no. 6 HGB and the five non-financial aspects pursuant to Section 289c (2) 1 to 5 HGB.

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Pursuant to Section 171 (1) sentence 4 of the German Stock Corporation Act (AktG), the Combined Non-Financial Group Declaration contained in this report on the situation of the Group and the company Sixt SE was reviewed by the Supervisory Board for legality, correctness and appropriateness. In accordance with Section 317 (2) sentence 4 of the German Commercial Code (HGB), it was submitted to the auditor, but not subjected to a substantive audit.

Sixt is committed to transparency towards its stakeholders and reports on all sustainability-relevant aspects of the business and the corporate environment. Sixt bases its reporting on the criteria of the Global Reporting Initiative (GRI). The reporting scope covers all companies of Sixt Group, i.e. all companies listed in the “Consolidation” section of the Notes to the Consolidated Financial Statements.

Basis for acting sustainably

Sixt is a premium provider and one of the innovation leaders in the mobility industry. Its range of services is permanently enhanced by adding new products and services. Technologies that meet the increasing demands of customers for flexible and contemporary mobility are of importance here. Sixt is continuously developing its broad range of products and services in line with demand and responds directly to emerging new trends. Sixt's range of services is described in more detail in the chapter “Principles of the Group.”

Sixt strives for responsible and sustainable value creation across the entire business spectrum. For example, Sixt's mobility platform ONE serves the (further) development of the sustainable customer-oriented business model related to the topics of Shared Mobility. This is because, in addition to Sixt's car sharing offer, this platform enables the integration of partner offers into the Sixt portfolio. Customers can thus make use of services in the area of micro-mobility or driving services such as taxis and transfer services in an uncomplicated manner and at standardised conditions. These additional offers increase the attractiveness and sustainability performance of Sixt's own products.

The goal is to design a service and thus a mobility product that offers customers a sustainable, convincing and attractive alternative to owning their own vehicle. This is because the shared use of vehicles can increase their utilisation and at the same time reduce the overall demand for vehicles and thus also the volume of traffic and the respective demand for space, especially in cities. The optimised mobility mix thus reduces greenhouse gas emissions (see section 3.2).

Materiality

Motivation and background

The Combined Non-Financial Group Declaration is based on the principle of materiality in the selection and weighting of topics. Sixt regularly conducts a materiality analysis to determine the most important topics. The management systems currently in place on quality and the environment, their inherent fields of action and the derived measures are used as their basis. In the further process, industry-relevant aspects and findings from the analysis of competitors and other comparable companies are included.

Three perspectives (“dimensions”) are of relevance in assessing issues in terms of their importance for the company.Impact: How strongly does Sixt's (business) activity affect the environment and stakeholders with regard to the respective aspect?Business relevance: How significant is the effect of the respective aspect on the part of the market and/or the stakeholders on the development of Sixt's business?Stakeholder relevance: How significant is Sixt's behaviour in terms of the respective aspects for the formation of stakeholder expectations and decision-making towards Sixt?

The answers to these questions provide information on the significance and thus materiality of the individual aspects and topics relating to Sixt's business activities and actions from a sustainability perspective.

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Procedure

The main topics of relevance to Sixt were identified and prioritised during structured workshops and by querying the specialist departments. A dedicated project team coordinated the entire process. The results of the analysis were translated into key areas for action and finally validated by the CFO as the Management Board member responsible for ESG.

17 internal contacts from 13 different divisions and 19 external contacts across six different stakeholder groups were selected for the materiality analysis. These include the stakeholder groups private customers, business customers, investors, car manufacturers and other suppliers. For the survey, 20 particularly relevant topics were pre-selected from a holistic list consisting of around 100 sustainability-related topics and presented to the contacts for discussion. Accordingly, the three perspectives mentioned above – impact, stakeholder relevance and business relevance – were determined. Subsequently, a materiality matrix was created to visualise the result. The 14 most important topics are presented in this Combined Non-Financial Group Declaration.

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Result and implications of the materiality analysis for Sixt

These top matters can be derived from the materiality matrix:

Sixt SE Annual Report 2021

These material fields of action are of particular importance for the business development and show in which areas Sixt sees focal points. The materiality analysis determined that the non-financial aspect of “respect for human rights” does not represent a material field of action for Sixt within the meaning of the CSR Directive Implementation Act due to the activity characteristics and business segments of the Group. Nevertheless, Sixt is expressly committed to respecting human rights. Further information on human rights compliance at Sixt Group can be found in the section “Corporate Governance and Compliance” in this Combined Non-Financial Group Declaration. Sixt has identified seven material fields of action that are assigned to the five non-financial aspects formulated in the CSR Directive Implementation Act.

2.2 Strategy and management approach

Sixt's strategic approach is to optimise the company's sustainability through attractive and flexible mobility offers. The company achieves the most far-reaching effect through a combination of three focus points: 1. the development of sustainable urban mobility and mobility services, 2. the use of highly efficient sustainable vehicles, 3. the consistent implementation of connectivity and digitalisation in the mobility sector.

The Group uses its organisational structures and governance processes to manage and promote responsible company behaviour -- from strategy to implementation. In addition, Sixt has implemented management systems in accordance with the international standards for quality (DIN EN ISO 9001:2015) and environmental protection (DIN EN ISO 14001:2015). This is how Sixt systematically and consistently takes sustainability issues into account in all of its business activities and across all hierarchical levels.

Overall responsibility for sustainability management lies with the Management Board, which aligns business policy with the requirements of socially responsible business and defines corresponding strategies and programmes. A declaration of commitment to “Health, Safety, Security, Sustainability and Environmental Protection” adopted and signed by the Management Board in 2015 serves employees of Sixt Group as a guideline for acting sustainably during everyday business.

The implementation and management of sustainability activities as well as the reporting of sustainability data is carried out in the various business units. The monitoring of targets and activities is carried out by the People Management department, the Operations department and the Governance, Risk Management & Controls (GRC) function and is constantly optimised. The Combined Non-Financial Group Declaration is prepared by the Finance department. Regular activities include, in particular, the tracking and monitoring of sustainability goals in the relevant departments as well as the preparation of relevant topics and analyses for the Management Board.

In order to also be able to objectively assess the development of sustainability activities, Sixt works together with rating agencies on sustainability performance. From the external feedback determined in this way, Sixt derives targets and measures for further optimisation of this performance. Sixt's sustainability management is supported by the company's own guidelines, which extend beyond the legal requirements. A Code of Conduct that is valid for Sixt worldwide and provides the ethical framework for daily business activities is of overriding importance.

3. Material fields of action

Sixt's sustainability management seeks to harmonise the Group's business activities with ecological, social and ethical aspects. It is operationalised through fields of action, goals and measures and integrated into the company processes. In addition, sustainability management builds on the requirements and interests of stakeholders. Customers, employees, suppliers and investors are of particular importance here. In addition to the overarching areas of “Sustainability at Sixt” and “Strategy and Management,” the Group's sustainability management is divided into seven material fields of action that cover the results of the materiality analysis. These are described in more detail below.

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Non-financial aspect	HGB	Material fields of action	Section
Environmental matters	§ 289c par. 2 no. 1	Shared Mobility
- Environment-related products & services
- Innovation & Partner
-Investments & Infrastructure
Greenhouse gas emissions & air quality
Resource conservation	3.1
Social matters	§ 289c par. 2 no. 3	Customer satisfaction
- Product quality & safety
Data protection & IT security	3.4
Employee matters	§ 289c par. 2 no. 2	Employee matters
- Diversity, inclusion and equal opportunities	3.7
Combating corruption and bribery	§ 289c par. 2 no. 5	Corporate Governance, Compliance & Transparency
- Code of Conduct	3.8
Respect for human rights	§ 289c par. 2 no. 4	Formally not a material field of action for Sixt in terms of the CSR Directive Implementation Act	-

3.1 SHARED MOBILITY

The future of climate-friendly and resource-saving mobility lies in Shared Mobility. Sixt understands this term to mean both the more intensive shared use of means of transport and the optimised combination of means of transport for a certain route. Shared Mobility will achieve sufficient attractiveness when the economic and ecological advantages on the one hand and largely preserved individual mobility on the other balance each other out.

This approach is based on several considerations. A large share of the vehicles kept in private households in particular are not used often or even only rarely. Nevertheless, these households cannot or do not want to do without their own vehicle and the associated individual mobility. In order to maintain this degree of freedom, a vehicle is then purchased at comparatively high cost. If several households were to share a lower total number of vehicles, this would be associated with an economic advantage for these households and a significantly lower resource requirement for the production of the vehicles. This effect could be further strengthened if households could select an optimised combination from the point of view of sustainability of different modes of transport for a certain route with little effort – for example, the combination of public transport with transfer services instead of covering the entire route with one's own vehicle. The resulting individual and

overall economic benefit would be far greater than the benefit from the current form of mobility.

In this scenario, Sixt understands Shared Mobility as the guiding idea of offering its customers the freedom to be flexibly mobile worldwide without owning their own vehicle ("individual mobility"). Sixt is convinced that Shared Mobility concepts will become increasingly important in the future. The mobility platform ONE already enables the implementation of such concepts today through the flexible use of vehicles across a diversified product range. As a mobility provider, Sixt thus offers the opportunity to significantly reduce the number of privately owned vehicles worldwide in the future and to save considerable amounts of greenhouse gases.

Environmentally friendly products and services

In 2021, Sixt's vehicle fleet comprised an average of around 125,300 vehicles. Of these, around 8.8% were purely electrically powered vehicles (e-vehicles), plug-in hybrids and mild hybrids. In the previous year, the share was only 3.3%. This means that not only the number of electrified vehicles in use has increased significantly, but also the share of the total fleet. Sixt is thus continuing its strategy of acting as a trendsetter and always being able to fully serve a growing interest in environmentally friendly vehicles. In the densely populated Netherlands, the entire rental fleet for SIXT share has already been converted to e-vehicles.

— Sixt SE Annual Report 2021

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Fleet size	2021	2020	2019
Average number of vehicles from Sixt	125,300	113,800	138,300
Share of all-electric vehicles, plug-in hybrids and mild hybrids	8.8%	3.3%	1.4%

Sixt also successively expanded its infrastructure for e-vehicles in 2021. The extent of this expansion is determined by the corresponding development of demand in the classic (short-term) rental business with a rental period of a few days. The focus of this expansion was on Germany and France. Sixt is thus anticipating the trend of increasing customer interest in emission-free driving. This means that as soon as an increased demand for e-vehicles becomes clear, Sixt will accompany this development with appropriate measures in the infrastructure.

The development of demand and the expansion of the electric infrastructure must be closely interlinked; otherwise there is a risk of misallocation of resources if the infrastructure is expanded at great expense and the corresponding demand fails to materialise. The attractiveness of e-vehicles is currently still limited, mainly due to bottlenecks/lack of possibilities "in the area", but not because there are too few charging points in the control area of Sixt. At present, there is a lack of detailed information from day-to-day business to be able to make a reliable assessment of the circumstances under which customers choose a vehicle with a purely electric drive. In this respect, all forecasts in this area - especially those covering several years - are subject to considerable uncertainty. At present, the only certainty seems to be that all newly registered vehicles in the European Union will be emission-free from 2035 onwards.

Sixt will continue to increase the share of low-emission and zero-emission vehicles as battery and charging technology continues to develop. However, this rate of increase depends to a considerable extent on technical progress and the change in customer preferences and wishes. If customer demand for this vehicle category increases, Sixt will react immediately by increasing the corresponding range of vehicles on offer. Against the backdrop of this market development, which is difficult to forecast, Sixt cannot currently set any concrete reduction targets, the achievement of which can only be influenced by Sixt to a limited extent. However, Sixt will implement various measures to steadily reduce the average standard consumption of the fleet. More concrete targets will be defined as soon as the economic and legal framework conditions are available.

Objectives:

Sixt will significantly increase the share of zero-emission vehicles before 2035 at the expense of vehicles with combustion engines over time.
By the end of the decade, Sixt will have reduced its carbon footprint in all direct greenhouse gas categories resulting from its own business activities and all indirect greenhouse gas categories resulting from the generation of energy procured by Sixt (performance-based).
By 2035, Sixt will have met the prerequisite for a $\mathrm{CO}_{2}$-neutral business operations in the European corporate countries.

Innovation and partners

Sixt invests in innovative business models and approaches to e-mobility and Shared Mobility. For example, Sixt has held a stake in Axilion (Israel), a developer of artificial intelligence for predicting traffic flows, since 2019. In addition, Sixt has partnered with Intel Group subsidiary Mobileye to jointly provide an autonomous ride-hailing service in Munich. The self-driving cars can also be requested via the SIXT App in the future and expand Sixt's Shared Mobility offering.

Investments and infrastructure

Sixt plans to have the majority of Sixt stations in Germany, Austria and Switzerland equipped with charging solutions by the end of 2022; Sixt is also working towards this goal in France and Italy.

In order to offer customers the highest level of service and to simplify the administrative processes surrounding the use of Sixt services as much as possible in the sense of Shared Mobility, a double-digit million euro amount was invested in the further development of customer-oriented information technology (especially applications) in the reporting year 2021. Sixt invests in the digitalisation of business processes, i.e. wherever processes become more efficient, cost-effective and customer-friendly as a result of these investments and support business development.

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3.2 GREENHOUSE GAS EMISSIONS & AIR QUALITY

As a provider of mobility solutions, Sixt is aware of its responsibility for climate protection and has set itself the goal of not only continuously reducing the average $\mathrm{CO}_{2}$ emissions of its fleet, but also to reduce overall greenhouse gas emissions

and the emission of other substances that impair air quality as much as possible. Sixt will achieve this through a combination of different measures, such as the continued use of new vehicles with the latest drive technologies such as electric and hybrid vehicles.

Emissions Objective	Measures	Performance indicator
Reduction of the average CO2 emissions of the fleet	Renewal of the vehicle fleet with a focus on vehicles with the lowest possible emissions	• Emissions (direct and indirect) • CO2 emissions (Scope 1-3) • ∅ CO2 emissions of the fleet
Reduction of average air pollutants

All vehicles in the Sixt rental fleet are state-of-the-art in terms of resource efficiency, $\mathrm{CO}_{2}$ emissions and safety systems. Passenger cars are usually kept in the fleet for about six months before they are replaced by the latest models available on the market. Thus, even in 2021, the holding period was significantly less than 12 months, despite contract extensions. The number of vehicles with electric or hybrid drives and

vehicle models with higher energy efficiency is also constantly increasing in the Sixt fleet.

In the reporting year 2021, Sixt was able to reduce its international average $\mathrm{CO}{2}$ - emissions per vehicle in the entire Group (measured in g $\mathrm{CO}{2} / \mathrm{km}$ ).

CO2-emission of all vehicles according to standard consumption in Sixt corporate countries	2021	2020
Ø Greenhouse gas emissions of the Sixt vehicle fleet	150 g CO2/km	152 g CO2/km

As part of its active climate protection, Sixt has established the SIXTainability initiative. The aim of this initiative is to make the topic of sustainability more present in the company. The SIXTainability network assists employees in implementing various aspects of sustainability in the company. Project groups organise activities and discussion rounds that focus on ecological responsibility, resource conservation and management, and climate protection.

Sixt generates its own electricity in renewable energy plants and feeds this energy into the public electricity grid. In this way, Sixt makes a contribution to climate protection, which in the reporting year 2021 added up to savings of 1,986,718 kg of $\mathrm{CO}_{2}$ compared to the German electricity mix. Sixt's headquarters and Sixt locations in Germany were again supplied exclusively with electricity produced from renewable energy sources ("green electricity") in 2021 (see section 3.3).

3.3 RESOURCE CONSERVATION

The protection of the environment and the responsible use of resources are a matter of course for Sixt. The Group keeps energy and water consumption in its sphere of influence as low as possible. With the help of its environmental management systems, which are certified in accordance with the international standard DIN EN ISO 14001:2015 at Group headquarters and other key locations, Sixt regularly monitors its resource consumption and strives to achieve continuous efficiency improvements.

Sixt pursues the goal of constantly improving its energy efficiency and reducing its energy consumption. In addition to the implementation and monitoring of concrete energy efficiency measures, energy audits and the sensitisation of employees are also part of the measures aimed at the resource-saving use of energy. Measures to increase energy efficiency are

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particularly easy to implement at Sixt's corporate headquarters, as the Group bears direct responsibility for the planning, construction and operation of the buildings, technical infrastructure and IT there. According to the energy audit in accordance with DIN EN 16247-1, which was carried out for the last time in financial year 2021 for calendar year 2020 and has to be renewed every four years, the consumption values for corporate headquarters are within normal parameters, and the heating requirement is below average.

Sixt SE's corporate headquarters has been connected to geothermal energy since 2018. This reduces gas consumption at the Pullach site by $95\mathrm{kWh}$ natural gas/ $\mathrm{m}^2\mathrm{a}$ . As part of

further modernisation measures, energy efficiency was significantly improved, among other measures. One area of this is the increased use of LED lighting. According to the most recent energy audit, this can result in savings of $50\%$ in the area of electricity for lighting. In addition, Sixt purchases electricity from renewable energy sources (green electricity) for all its sites in Germany where Sixt is responsible for purchasing. The properties at other locations are rented, so the influence of Sixt on energy efficiency there is comparatively low. Nevertheless, Sixt pays attention to the use of sustainable technologies in the ongoing renewal, expansion and new establishment of locations. For example, almost exclusively energy-saving LED lighting is used when setting up Sixt stations.

Energy Objective	Measures	Performance indicator
Continuous improvement of energy efficiency	Implementation and monitoring of energy efficiency measures	Total energy consumption
	Implementation of energy audits
	Raising awareness of energy-saving measures among employees

The total energy consumption of Sixt SE in Germany in 2020 was 19.1 gigawatt hours (GWh) according to the TÜV Süd energy audit. The electricity was obtained entirely from renewable energy sources ("green electricity"). This is a significant improvement compared to 2016 (penultimate complete survey), when Sixt consumed 26.3 GWh of energy in Germany; this corresponds to an average annual improvement of $7.7\%$ .

In addition to improving energy efficiency, Sixt has set itself the goal of continuously optimising its water consumption. Water-saving measures have been implemented not only at its corporate headquarters, but also at rental stations with connected car washes. In the years of the corona measures, 2020

and 2021, the amount of water used per employee at the corporate headquarters decreased significantly, from about $7.9\mathrm{m}^3$ per employee annually in 2019 to about $3.5\mathrm{m}^3$ per employee in 2021. The increased use of working from home had a positive effect on this development. Irrespective of this, further measures to reduce consumption are being examined. At the airports in Frankfurt and Cologne, for example, Sixt washes its vehicles at its own car washes. By using water recovery systems, up to $85\%$ of the wash water can be reused. The average amount of (fresh) water used for vehicle cleaning is about 150 litres per wash. By using water reclamation, the amount of fresh water used can be reduced to about 25 litres, and about 125 litres are recycled.

Water consumption per employee at company headquarters

in m3	2021	2020	2019	2018
	3.5	3.6	7.9	8.6

Sixt is also consistently converting the printing and dispatch of rental agreements and invoices to electronic document dispatch. For example, Sixt had already largely discontinued the printing and dispatch of paper rental agreements in Germany

in financial year 2019. Exceptions include, for example, explicit customer requests for paper form or processes for which a paper rental agreement or invoice is necessary.

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3.4 CUSTOMER SATISFACTION

Sixt permanently analyses customer satisfaction. After each use of a product or service, customers are asked by e-mail to assess the service provided and to give a quantitative evaluation. The two questions "How satisfied were you with the rental?" and "Would you recommend Sixt?" are of great importance to the result. Customers can rate their satisfaction on a scale from one (dissatisfied) to five (very satisfied). Supplementary and explanatory information is also possible. Sixt derives optimisation measures from this information, such as changing the staffing of work shifts to reduce waiting times for customers, or targeted training measures for employees.

The global customer satisfaction score for Sixt's car rental business, the Customer Excitement Score (CES), reached an average of 4.38 points on the one to five scale in 2021. The value was thus slightly below those of the two previous years. The development is due to two influencing factors. On the one hand, the desired vehicles were not always fully available because Sixt had to significantly reduce its fleet during the slump in demand in the corona years 2020 and 2021. Secondly, the aforementioned effect led to temporary price increases in some vehicle categories. Both led to a slightly weaker satisfaction rating on the part of customers.

Customer satisfaction	2021	2020	2019
Customer Excitement Score (CES)	4.38	4.40	4.42
1 = dissatisfied, 5 = very satisfied

The highest satisfaction score of 4.45 points was achieved by Sixt in France. As the market returns to normal and customer demand for vehicles stabilises, satisfaction scores are expected to rise again from 2022 onwards, reflecting Sixt's ambition to get as close as possible to the highest score of 5.0.

Product quality and safety

The Sixt vehicle fleet is made up of high-quality vehicles of all categories. Safety aspects play a prominent role in the selection of manufacturers and models. During operations, the vehicles are permanently subjected to visual inspections and undergo scheduled maintenance. All stations carry out regular operational and road safety inspections. Depending on the vehicle type, the vehicles are equipped with modern assistance systems such as automatic distance and lane keeping functions, blind spot warning or a rear view camera. With trucks, a personal handover usually takes place, during which the special dimensions of the vehicles are specifically pointed out. In addition to this, Sixt offers a range of protection services for all aspects of driving.

3.5 IT SECURITY AND DATA PROTECTION

Sixt SE is aware of its responsibility for protecting its customers' and business partners' data. Sixt has therefore established organisational and technical measures to comprehensively protect the operational security of its information

technology (IT) systems, products and customer data. Nevertheless, Sixt again registered several attacks on its IT systems in 2021. The number of such so-called cyber-attacks followed the general, cross-industry trend of a steady and increasingly targeted increase in attacks by third parties on companies' IT systems, either just to cause damage or to spy on data and monetise it. The number as well as the variants and the complexity of the attacks have increased; this requires the constant improvement of the defence measures. At Sixt, no significant damage or impairment was caused by these attacks.

The Sixt Information Security Organisation monitors and analyses attacks, derives risks and measures and then implements them. The respective steps are summarised in a security guideline. Sixt has initiated organisational and technical measures to comprehensively protect the operational security of the IT systems, products and customer data. The information security organisation, consisting of an Information Security Officer (ISO), information security managers and security specialists in IT, is constantly working to improve protective measures to ward off cyber-attacks. In addition, Sixt invests in future-proof and modern technologies in order to constantly optimise operational and data security.

Organisational measures include company-wide information security policies, regular audits and security awareness training for employees. The technical measures include regular so

— Sixt SE Annual Report 2021

called penetration tests (simulated attacks on IT systems to discover vulnerabilities), “bug bounty programmes” for external hackers (identification of security gaps) and the use of powerful security software in the working and development environment of the IT systems.

Sixt takes the same care with data protection because here too the company fulfils its responsibility with regard to the protection of customer and business partner data without exceptions. Sixt SE is not aware of any incidents in which data was withdrawn without authorisation. There were also no data protection violations that had to be reported to the authorities. Attacks in which external parties attempted to access the corresponding customer accounts at Sixt using customer data (names, passwords) obtained illegally elsewhere were successfully rejected by the Sixt security system by performing numerous plausibility checks. Another measure is the continuous activity-related training of our employees with regard to data protection regulations.

Social Engagement

The Regine Sixt Kinderhilfe e.V. was founded in 2000 and was transformed into the Regine Sixt Children's Aid Foundation in 2010. The purpose of the foundation is to improve the conditions of children and adolescents with regard to their medical care, help in cases of serious illnesses and injuries, the improvement of their general health conditions and their living environment including their education. Accordingly, the foundation is involved in the four areas of health, welfare, emergency aid and education. It became known worldwide under the name "Drying Little Tears".

The administration of the foundation is composed of the Management Board, with Regine Sixt as Chairman of the Board, and the Management Board members Alexander Sixt, Konstantin Sixt, Dr. Julian zu Putlitz and Dr. Andrew Mountstephens, as well as the Foundation Advisory Board Prof. Dr. Marcus Englert, Dr. Brigitte Mohn, Dr. Daniel Terberger, Prof. Dr. Peter Biberthaler and international honorary members of the members of the Board of Trustees. The foundation is the official Corporate Social Responsibility (CSR) programme of Sixt SE worldwide. In the meantime, it has become an integral part of the culture and helps wherever Sixt is present -- i.e. in over 100 countries.

To date, 220 projects have been implemented: In the area of health, the engagement in the Hadassah Medical Care Centres in Mount Scopus and Ein-Karem in Israel, the Dr. von Haunerschen Children's Hospital in Munich, the Charité in Berlin, the Alder Hey Children's Hospital in Liverpool, the Hôpital Robert Debré in Paris and for more than 20 years in the Schwabing Hospital in Munich in the context of cancer therapy stand out in particular.

Another special project is the cooperation with the GFAOP (Groupe Franco-Africain d'Oncologie Pédiatrique), through which the foundation is now actively involved hospitals in Africa. Day-care Schools in Cape Town and Durban, the cooperation with the orphanage in Munich and a children's home in Tanzania are examples of projects of projects that have been realised in the field of welfare.

In the area of education, the Regine Sixt Children's Aid Foundation is currently supporting the expansion of a school for children with disabilities in Palma de Mallorca. Getting children excited about classical music is the goal that is being pursued with the Sulamot organisation in Israel and the support of the music school and the Montepulciano Music Festival.

In the area of emergency aid, the Regine Sixt Children's Aid Foundation together with Sixt USA provided children with necessary supplies after the eruption of the La Soufrière volcano. After the flood disaster in Swisttal, a day care centre for children was rebuilt.

At the moment, the focus of the foundation's work is on providing support for the children from Ukraine, for example with aid transports, food donations as well as with the transport of refugees from Ukraine and neighbouring areas -- this with the extensive support of the Sixt countries on the borders and numerous Sixt employees.

In implementing the projects, the Regine Sixt Children's Aid Foundation works closely with leading aid organisations such as Malteser Hilfsdienst, Johanniter Unfallhilfe, Habitat for Humanity, Don Bosco, Jerusalem Foundation and numerous other organisations.

The Sixt Group has also set up a “Drying Little Tears Day” for years. This is a project day, that allows all interested Sixt employees to dedicate one day a year to support children's aid projects.

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3.7 EMPLOYEE MATTERS

Sixt attaches great importance to being an attractive employer for its employees. To achieve this, Sixt wants to offer the entire workforce the most pleasant working environment possible

and strengthen cohesion to a great extent. Important components of this include the active involvement of employees in operational decisions, responsibility for the safety and health of employees, and fair and opportunity-preserving cooperation.

Employer attractiveness
Objective	Activities	Performance indicator
Increase attractiveness of Sixt as an employer and employer of choice	Continuous further development of a global employer branding concept	Satisfaction measure in surveying employees Fluctuation rate
	Expansion and digitalisation of Feel Good Management	Number of areas with Feel Good Management support
Increase the work-life balance of employees	Expansion of programmes to strengthen the work-life balance	Ratio of employees on a trust-based working time basis
Maintain a high level of employee satisfaction	Regularly conducting and evaluating employee satisfaction surveys and deriving potential need for action from the results of the survey	Satisfaction measure in surveying employees
		Fluctuation rate

Sixt's success as a company depends to a decisive degree on the knowledge, skills and commitment of its employees. Sixt expects its employees to act on their own responsibility, to permanently improve Sixt's services and to meet the changing mobility needs of its customers. That is why the Group is committed to a culture that focuses on the people who work at Sixt. Sixt is committed to consistently awakening and promoting the talents of its employees, to adequately rewarding their commitment and to applying uniform principles to remuneration that exclude any form of discrimination.

Talent development goes hand in hand with the further development of professional, personal and digital competence. Sixt is therefore intensifying the number of internationally standardised further training and onboarding measures in line with requirements, which are designed to ensure and steadily improve performance in everyday work. In order to guarantee the development offer despite the changed framework conditions due to the coronavirus pandemic, all learning formats are available digitally. The training offer is aimed at employees of all hierarchical levels and covers a broad range of topics.

Employee promotion and development Objective	Measures	Performance indicator
Further development of the professional competence of employees and managers	Demand-oriented, target audience-specific, digital and analogue learning formats	Number of training courses and number of participants
Further development of remuneration models	Regular evaluation and improvement of the employee participation programmes	./.

Employee survey

In the reporting year 2021, Sixt again conducted a satisfaction survey among all its employees. $68\%$ of all employees worldwide took part. The results showed that $82\%$ of respondents were satisfied to very satisfied in the first half of the year and would recommend Sixt as an employer. In the second half of the year, this figure even increased to $88\%$ . Several reasons may have contributed to this extremely positive result. For example, Sixt offers various working time models and also the

possibility of mobile working. Employees at headquarters and in administrative functions, as well as managers, work on the basis of trust-based working hours with the option in 2021 of doing half of their work as mobile work. All other employees in the Mobility business unit record their working hours. The work concepts "Mobile Work" and "Working Abroad," i.e. the possibility to work from home and also from abroad, are to be further expanded in 2022.

— Sixt SE Annual Report 2021

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Health and safety

Sixt has set up a committee for health and safety at work. This so-called EHS task force (Employee Health and Security) has the task of initiating all appropriate measures for the (health) protection of both employees and customers. In doing so, the committee not only implements the legal requirements, but also makes numerous recommendations on preventive and response measures.

Sixt practices a comprehensive occupational safety policy throughout the Group. A significant part of this is devoted to prevention: safety specialists, occupational physicians and internal occupational safety coordinators carry out regular site inspections. Individually adapted operating instructions are derived from the respective risk assessments. All reports of accidents and near-accidents are also included in this process. Sixt trains its employees on giving first aid and acting as fire protection assistants and safety officers beyond the number required by law in companies. In addition, there are e-learning courses on occupational safety and fire protection for the entire workforce.

Sixt offers a regular range of preventive check-ups and counselling as part of site visits and weekly online consultations; this also includes psychological counselling by trained staff who can be reached at any time via an emergency number.

Anti-corona measures

As in 2020, Sixt implemented an extensive programme to deal with the coronavirus pandemic in the reporting year 2021. Numerous measures were initiated to cushion the consequences of the anti-corona measures and the corresponding mental stress on the workforce. A special in-house task force was available 24 hours a day to respond to both foreseeable and unforeseeable events and developments at any time. A broad-based communication and information concept informed the workforce promptly, comprehensively and objectively about the respective situation and upcoming measures. The Sixt intranet offers a wide range of dialogue opportunities for employees to exchange information with each other.

Effective measures were also taken to protect against infection, including rapid identification of close contacts in the workplace and preventive leave to break chains of infection, additional free corona tests to the quota specified by decree, reduction of contacts in the workplace through rapid introduction of a mobile work regulation. In addition, there were internal vaccination campaigns for employees and their relatives as well as training by occupational physicians on the topic of "infection protection in the company."

Training and further education

The training and further education offered at Sixt is also of particular importance. In 2021, all employees (100%) participated in at least one training event. A total of 66,729 training hours were given, of which 43,813 hours were in the context of eLearning programmes and 22,916 hours in the context of workshops. With an average number of employees of 6,399 in 2021, 10.4 training hours were given per employee.

Work and family

Sixt shows great flexibility with regard to the compatibility of work and family. In 2021, 5.4% of female employees and 2.0% of male employees in Europe took parental leave.

Diversity, inclusion and equal opportunities

Sixt SE hires the best candidate for each position to be filled. With equal qualifications, attention is paid to increasing diversity, which Sixt sees as an important building block for success due to the more diverse experiences, expertise and more creative approaches. For the further development of diversity, Sixt has committed itself to the "Diversity Charter." This charter is a voluntary commitment published in 2006 by major German companies that advocates a prejudice-free working environment. In the meantime, many other companies have joined this initiative to value and develop diversity within organisations. In the future, an independent "Diversity & Inclusion" team at Sixt will increase the diversity of the workforce.

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Personnel structure at Sixt worldwide in 2021
Gender ratio	Women: 45%	Men: 55%
Age of employees up to	30 years	37%
	31 to 50 years	53%
	over 50 years	10%
Average age		34.7 years
Number of nationalities of Sixt employees (excluding the US, where recording nationalities is restricted for legal reasons)		101

An important instrument for promoting diversity and integrating individual strengths into work and business processes at Sixt is the company's internal diversity network DiverSiXTy, which is intended to support the development of a diverse company culture. Through specifically organised activities, training and panel discussions as well as by naming trustworthy contacts and through constant target audience support, Sixt consciously focuses on strengthening a respectful, appreciative and tolerant working environment.

In 2019, Sixt comprehensively analysed the salary structure of all employees and determined as a result that there are no gender-dependent differences in remuneration between comparable positions. Since then, the salary payments have been compared annually with the reference values (internal guidelines, market and industry standards) for the respective grade groups and job profiles. If there are significant downward deviations, Sixt closes these gaps.

Management structure Sixt worldwide1
Gender quota (C-1 and C-2)	Women: 28%	Men: 72%
Age of managers up to	30 years	1%
	31 to 50 years	84%
	over 50 years	15%
Average age		42.2 years
Number of nationalities of Sixt executives		10
1Information for the two management levels below the Management Board (C-Level)

An audit in accordance with the German Remuneration Transparency Act (Entgelttransparenzgesetz) in 2019 did not reveal any gaps at Sixt outside the narrow tolerance range. Independently of this, Sixt carries out an annual comparison of position-related salary levels using reference figures derived from salary groups, job categories and market and industry standards. Any remuneration differences identified in the course of this analysis are then closed.

Relevant key figures and further information on the employee development programmes, the basic features of the remuneration system and the employee share ownership programme can be found in the chapters "Human Resources Report" and "Corporate Governance Declaration". In the reporting year

2021, Sixt was again not aware of any events or allegations of discrimination or harassment.

3.8 CORPORATE GOVERNANCE, COMPLIANCE & TRANSPARENCY

Relevant business transactions are investigated regularly for possible suspicions of bribery and corruption. As part of compliance management, employees as well as franchise and agency partners are encouraged to act appropriately and are trained accordingly. In order to ensure that employees behave in accordance with the law as far as possible, Sixt has installed an appropriate compliance management system and adopted a compliance guideline. All employees have confirmed in writing that they have received, acknowledged and understood

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this guideline. In addition, Sixt pursues – independent of the formal, written fixation – the philosophy of a practiced compliance culture. Finally, a compliance coordinator monitors whether meets compliance requirements in so-called borderline cases and records this in writing. In order to rule out non

compliant behaviour at suppliers, Sixt adds appropriate clauses to the purchasing guidelines and contracts. Online training courses for employees on current compliance topics and correct ethical behaviour round off Sixt's compliance programme.

Corporate Governance and Compliance Objective	Activities	Performance indicator
Sensitisation of employees to compliance issues	Regular review of the Code of Conduct	• Certified environmental responsibility
	Integration of further compliance requirements into the Code of Conduct as required	• Compliance audits
	Obligation of employees, franchise and agency partners to comply with the Code of Conduct, extended behavioural guidelines in particularly sensitive business areas	• Compliance
Compliance organisation	Implementation of an internal governance structure according to the Three Lines of Defence model	• Supplier audit
	Compliance audits by the internal audit department, among others	• Supply chain transparency • Anti-corruption measures • Whistleblowing • Stand-alone programme Whistleblower Protection • Anti-corruption programme • Communication Ombudsperson

In 2021, Sixt Group (except for the region US and the Information Technology division) was successfully audited and certified with regard to its organisation and performance in the areas of quality management (ISO 9.001) and environmental management (ISO 14.001).

Supply chain

External service providers and suppliers also make an important contribution to Sixt's value creation. These are carefully selected according to commercial and ecological aspects as well as compliance with legal requirements and social standards. As an internationally active company, Sixt is fully committed to respecting human rights and corresponding legal regulations at home and abroad. The Group is committed to respecting and promoting human rights in accordance with the wording of the UN Global Compact and to reporting transparently on the results of its actions.

Furthermore, Sixt contractually obliges its franchise and agency partners to comply with high social standards and to act with integrity in accordance with ethical principles. In Germany, among other things, compliance with the Minimum Wage Act and the application of collective agreements for temporary employment are selection criteria for cooperation with temporary workers.

The most important purchasing item at Sixt is vehicles, which account for the vast majority of the goods and services purchased. With regard to these manufacturers, Sixt has informed itself about possible risks from a sustainability perspective in the value chain. The respective information and statements are included in the selection of purchased products. Thus, Sixt decides not only based on the criteria of safety, price, quality and delivery reliability, but also based on the sustainability criteria of human rights and labour rights at the respective suppliers.

In 2021, Sixt sourced more than three-quarters of its vehicles from European (environmentally certified) manufacturers. These companies subject their upstream supply chain to extensive auditing and monitoring. This also includes preventive measures such as contractual obligations to comply with environmental and social standards, human rights as well as management systems for occupational health and safety and environmental protection. The basic prerequisite for awarding any contract is compliance with the specified sustainability requirements. These requirements are verified through various measures such as audits. The manufacturers sometimes also select their primary products under strict sustainability criteria – for example, when sourcing sustainable, certified natural rubber and rayon, a wood-based material used to reinforce

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tyres. The above-mentioned manufacturers have had their (production) sites certified according to the environmental management standard ISO 14.001.

Sixt is currently working on the appropriate programmes and measures to fully comply with the requirements of the Supply Chain Duty of Care Act (LkSG) when it comes into force on 1 January 2023.

The same applies to the purchase of other products (not vehicles) and services. Around 55% of these purchases in 2021 came from countries in the European Union, another 6% from European non-EU countries and 30% from non-European industrialised countries. Here, the risk of environmental protection, human rights and labour law violations on the part of suppliers is very low – with a limited scope of auditing at Sixt. Only 9% of Sixt's purchases came from non-European, non-industrialised countries; here, too, more frequent random checks did not reveal any suspected cases of the aforementioned violations.

Codes of Conduct

Sixt's success is based not only on the Group's business policy, but also on compliance with moral and ethical standards, on integrity and on the trust that customers and suppliers, shareholders and business partners place in the Group. This trust can only be gained and maintained if all employees adhere to the law and to Sixt's high standards of conduct. Franchise and agency partners also have a similar obligation, as they are perceived by outsiders as representatives of Sixt. Sixt has set itself the goal of regularly sensitising employees as well as franchise and agency partners to the topic of compliance.

Against this backdrop, the Group-wide Code of Conduct plays an important role. Employees and key business partners (franchisees, agency partners) have committed to comply with this Code of Conduct. As an organisation, Sixt is committed to explicitly encouraging its individual employees and key business partners to behave ethically, socially appropriately and with integrity through the Code of Conduct. The Code governs the conduct towards business partners and third parties, the principles on the working environment, the handling of conflicts of interest, assets and facilities of

Sixt, the handling of the intellectual property of third parties and the handling of confidential information.

The Code of Conduct also describes various reporting channels for whistleblowers regarding breaches of rules; a corresponding confidential report is also possible. This includes the institution of an external ombudsperson. If employees wish to report compliance violations, the ombudsperson serves as an additional point of contact in addition to the internal reporting channels via the supervisor and the Compliance Officer. The Compliance Officer is in regular contact with the Management Board and advises and supports it with regard to preventive measures. Compliance with all laws and the Code of Conduct is regularly monitored in all Group companies worldwide.

Anti-corruption rules

Sixt formulates clear expectations regarding the correct behaviour of its employees and ensures that business relationships are only maintained with those customers and business partners whose business activities are in accordance with legal regulations and whose financial resources are of legal origin. At the same time, Sixt obliges and trains its employees and business partners with regard to strict compliance with anti-corruption requirements. The same applies to ensuring behaviour with integrity with regard to competition agreements. Both management and Sixt employees are trained regularly and sensitised with regard to these requirements.

Anti-competitive behaviour

Sixt has obligated its managers and employees to comply with the rules and laws that determine how they work, interact and cooperate with others. To this end, the management has established appropriate principles, rules and regulations based on the company's objectives, which are developed, implemented and reviewed by the Compliance Department. These include, for example, the relevant data protection regulations, the insider register with the corresponding instructions for those listed therein, rules and regulations on the acceptance of gifts, the prevention of corruption or the establishment of whistleblower mechanisms.

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4. EU TAXONOMY

Background and objectives of the regulation

A key objective of the European Union's Sustainable Growth Financing Action Plan is to redirect capital flows towards sustainable investments and ensure market transparency. To achieve this goal, the Commission called for the creation of an EU classification system for sustainable economic activities (EU Taxonomy).

Regulation (EU) 2020/852 (hereinafter the Taxonomy Regulation, EU Taxonomy or Taxonomy) was published in the Official Journal of the European Union on 22 June 2020 and entered into force on 12 July 2020. It aims to define which economic activities are to be considered environmentally sustainable. It is an important legal instrument to enable and expand sustainable investments and thus implement the European Green Deal. The Taxonomy Regulation classifies environmentally sustainable economic activities on the basis of technical assessment criteria set out in the Commission's delegated acts to this Regulation. The first delegated act establishing the technical assessment criteria for economic activities that make a significant contribution to climate change mitigation and adaptation was adopted on 4 June 2021.

Initial reporting for financial year 2021

As a company that is required to issue a Non-Financial (Group) Declaration pursuant to Sections 289b (3) and 315b (3) of the German Commercial Code (HGB), Sixt must disclose information on how and to what extent its activities are linked to economic activities that are to be classified as environmentally sustainable economic activities under the EU Taxonomy in accordance with Article 8 (1) of the Taxonomy Regulation.

Article 8 (2) sets out the key performance indicators ("KPIs") in relation to revenues, capital expenditure ("CapEx") and operating expenditure ("OpEx") that Sixt must disclose.

Another delegated act regulates the disclosure requirements under Article 8 of the Taxonomy Regulation. The rules set out in the delegated act allow companies to translate the technical assessment criteria into quantitative economic performance indicators – the KPIs – which are published.

We are making use of the facilitation provisions under Article 10 of the Delegated Regulation on Article 8 of the EU Taxonomy Regulation for financial year 2021. According to this, initially only our taxonomy-compliant economic activities related to the first two environmental objectives are to be reported. Reporting on taxonomy-compliant activities is not required under the current facilitation rules.

The EU Taxonomy Regulation and the delegated acts adopted in this regard contain wording and terms that are still subject to considerable uncertainties of interpretation and for which clarifications have not yet been published in every case.

Economic activities eligible for taxonomy

In the financial year, Sixt identified the following economic activities as taxonomy-eligible within the meaning of the Taxonomy Regulation in connection with the first two environmental goals of climate protection and adaptation to climate change:

6.5 Carriage by motorbikes, passenger cars and light commercial vehicles
6.6 Freight transport by road

An economic activity is eligible for taxonomy if it is covered by the delegated acts. For the consideration of taxonomy eligibility, it doesn't matter whether the economic activity fulfils all technical assessment criteria set out in the delegated acts. In the context of these activities, climate protection in particular is a priority for us. The environmental goal of adaptation to climate change is of lesser importance. We therefore classify our activities under climate protection, as double counting for both environmental objectives is not permitted.

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Determination of the taxonomy key figures

The determination of the taxonomy ratios and the reporting of Sixt's taxonomy-eligible economic activities is carried out in accordance with Articles 10 (3) and 11 (3) of Regulation (EU) 2020/852. The ratios to be determined are the shares of taxonomy-eligible revenue, capital expenditure and operating expenditure.

Double counting is avoided when determining the revenue, investment and operating expenditure ratios by using accounting data.

Revenues

The revenue share referred to in Article 8 (2) (a) of Regulation (EU) 2020/852 is calculated as the part of net revenue in goods or services, including intangibles, linked to taxonomy-eligible economic activities (numerator) divided by net revenue (denominator) within the meaning of point 5 of Article 2 of Directive 2013/34/EU.

In order to determine the revenues that Sixt generates with taxonomy-eligible economic activities, we have analysed the consolidated revenues in an initial step to determine which of the economic activities covered by the taxonomy are relevant for Sixt. These are the activities 6.5 and 6.6. and in each case the rental of vehicles. For the economic activities identified, the net sales revenues for financial year 2021 (numerator) were determined and set in relation to the sales revenues of Sixt reported in the income statement (denominator).

See Income statement (revenue)

Capital expenditure

Capital expenditure (CapEx) within the meaning of the EU Taxonomy comprises additions to property, plant and equipment and intangible assets during the financial year under review before depreciation and revaluations, including those resulting from revaluations and impairments for the financial year in question and excluding changes in fair value. This also includes additions to property, plant and equipment and intangible assets resulting from business combinations. Capital expenditure includes costs incurred on the basis of IFRS Standards IAS 16 Property, Plant and Equipment, paragraph 73, subparagraph (e), item (i) and item (iii), IAS 38 Intangible Assets, paragraph 118, subparagraph (e), item (i), IAS 40 Investment Property, paragraph 76, (a) and (b) (for the fair value model), IAS 40 Investment Property, paragraph 79(d), items (i) and (ii) (for the cost model), IAS 41 Agriculture, paragraph 50, items (b) and (e) and IFRS 16 Leases, paragraph 53, item (h).

Taxonomy-eligible investment expenditure can relate to assets or processes associated with taxonomy-eligible economic activities, or be part of a plan to expand taxonomy-eligible economic activities or transform taxonomy-eligible economic activities into taxonomy-compliant economic activities, or relate to the purchase of products from taxonomy-eligible economic activities and individual measures that carry out the target activities in a low-carbon manner or reduce greenhouse gas emissions.

In order to determine Sixt's taxonomy-eligible capital expenditures, we have analysed the additions in the reporting year in a first step to determine what portion of them is related to the taxonomy-eligible economic activities 6.5 and 6.6. The major part of our rental fleet is reported under current assets (see 4.17 in the Notes to the Consolidated Financial Statements) due to the average holding period of less than one year under IFRS. Due to the direct economic connection with our taxonomy-eligible revenue the investments in the rental fleet were included in the analysis. In the case of investments that cannot be clearly allocated (e.g. buildings), the taxonomy-eligible capital expenditure was determined using appropriate allocation keys based on cost centres. In addition, capital expenditures from the purchase of products from taxonomy-eligible economic activities and the implementation of individual measures to reduce greenhouse gas emissions were taken into account, in particular the installation of charging stations for electric and hybrid vehicles in buildings in connection with economic activity 7.4. The taxonomy-eligible capital expenditures (numerator) determined in this manner were set in relation to the total capital expenditures (denominator) shown in the appendix.

See Notes: Fixed assets movement schedule (additions) + additions of rental vehicles (4.17)

Capital expenditures that are part of a plan to expand taxonomy-eligible economic activities or to convert taxonomy-eligible economic activities into taxonomy-compliant economic activities did not exist in the reporting year.

Operating expenses

Operating Expenditure (OpEx) for the purposes of the EU Taxonomy includes direct, non-capitalised costs relating to research and development, building refurbishment, short-term leasing, maintenance and repair, and any other direct

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expenditure associated with the day-to-day maintenance of tangible fixed assets that is necessary to ensure their functionality. The taxonomy-eligible operating expenditure can relate to assets or processes associated with taxonomy-eligible economic activities, or be part of a plan to expand taxonomy-eligible economic activities or to transform taxonomy-eligible economic activities into taxonomy-compliant economic activities, or relate to the purchase of products from taxonomy-eligible economic activities and to individual measures that carry out the target activities in a low-carbon manner or reduce greenhouse gas emissions, as well as to individual building renovation measures.

In order to determine Sixt's taxonomy-eligible operating expenses, we first analysed the expenses in the reporting year to determine what portion of them related to assets or processes associated with taxonomy-eligible economic activi

ties 6.5 and 6.6 (numerator). These were mainly expenses for maintenance and repair as well as leasing expenses. For expenses that cannot be clearly allocated, the taxonomy-eligible operating expenses were determined on a cost centre basis using appropriate allocation keys. The taxonomy-eligible operating expenses thus determined were set in relation to the total operating expenses covered by the taxonomy (denominator).

There were no operating expenses that are part of a plan to expand taxonomy-eligible economic activities or to transform taxonomy-eligible economic activities into taxonomy-compliant economic activities or that relate to the purchase of products from taxonomy-eligible economic activities and individual measures through which the target activities are carried out in a low-carbon manner or the emission of greenhouse gases is reduced in the reporting year.

Reporting of the EU Taxonomy indicators

	total in EUR million	Share of taxonomy-eligible economic activities	Share of economic activities not eligible for taxonomy
Revenue	2,284	97%	3%
Capital expenditure	3,913	99%	1%
Operating expenses	298	95%	5%

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B.8 DEPENDENT COMPANY REPORT

In accordance with section 17 of the AktG, Sixt SE is a dependent company of Erich Sixt Vermögensverwaltung GmbH, Pullach, as well as ES Asset Management and Services GmbH & Co. KG, Pullach. According to article 9 (1) lit. c) (ii) of the SE regulation, section 49 (1) SEAG in conjunction with section 312 of the AktG a report is therefore prepared

containing the following concluding declaration by the Management Board:

“There were no legal transactions or measures subject to disclosure requirements in the financial year.”

B.9 CORPORATE GOVERNANCE DECLARATION IN ACCORDANCE WITH SECTIONS 289F AND 315D HGB

In accordance with the provisions of Sections 289f and 315d of the Handelsgesetzbuch (HGB – German Commercial Code), the company is obliged to include a Corporate Governance Declaration in its Management Report. Pursuant to Section 317 (2) 6 HGB, the audit of the disclosures made in accordance with Sections 289f and 315d HGB is limited by the auditor to whether the disclosures have been made. The Declaration can also be found on the website of Sixt SE at ir.sixt.eu under “Corporate Governance.”

Corporate Governance

For Sixt SE, good and responsible corporate management and supervision (Corporate Governance) is an important way of ensuring and enhancing the confidence of customers, business partners and the capital market in the company. Responsible management that focuses on long-term value creation is therefore of great importance to the company. The basic hallmarks of good Corporate Governance are efficient and trusting collaboration between the Management Board and the Supervisory Board, upholding shareholders’ interests and transparency in the company’s communication, both externally and internally.

With the German Corporate Governance Code, the Government Commission on the German Corporate Governance Code makes recommendations regarding the corporate management of listed German companies. Apart from the exceptions listed in the Declaration of Conformity of December 2021, the Management Board and the Supervisory Board of Sixt SE affirm their commitment to these recommendations of the German Corporate Governance Code.

Declaration of Conformity in accordance with Section 161 of the German Stock Corporation Act (Aktiengesetz – AktG)

The Management Board and Supervisory Board of Sixt SE declare:

The recommendations of the “German Corporate Governance Code” in the version of 16 December 2019 (hereinafter referred to as “Code”) announced by the Federal Ministry of Justice in the official section of the Bundesanzeiger (Federal Gazette) on 20 March 2020 will be complied with, with the following exceptions:

Recommendation C.10 with respect to the chairman of the Supervisory Board: In C.7, the Code contains a list of criteria which are suitable for denying the independence of Supervisory Board members, but which do not necessarily exclude it. Two of these criteria apply to the Chairman of the Supervisory Board, Mr. Erich Sixt. The Supervisory Board is of the opinion that Mr. Erich Sixt will exercise the function as Chairman of the Supervisory Board in the best interests of Sixt SE, regardless of his previous position as member of the Management Board and his family relationships with two members of the Management Board.

Recommendations G.1. and G.2.: The Supervisory Board believes that the determination of individual target total compensation in addition to a maximum compensation does neither provide an additional incentive for the Management Board nor a further advantage for Sixt SE.

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Recommendation G.7: The Supervisory Board believes that a long-term determination of performance criteria for variable compensation components is more beneficial to sustainability than an annual determination for the upcoming financial year.

Recommendation G.10: The contracts of the Management Board members do not stipulate that variable compensation amounts are to be invested predominantly in shares of the company or granted accordingly. The Supervisory Board believes that such a structure would not be more beneficial to the long-term promotion of the company's well-being and to ensuring sustainable and long-term success of the company.

With regard to the past, the June 2021 update of the declaration of conformity published in December 2020 applies. Therein exceptions from the recommendations C.2 (age limit for Supervisory Board), C.10 (independence with respect to the chairman of the Supervisory Board), D2 to D5 and D11 (committees of the Supervisory Board) as well as G1, G2, G7 and G10 (remuneration of the Management Board) have been declared and explained.

Pullach, 22 December 2021

The Management Board

The Supervisory Board

Target figures in accordance with the Act on the Equal Participation of Women and Men in Leadership Positions

In accordance with the provisions of the Act on Equal Participation of Women and Men in Leadership Positions in the Private and the Public Sector (Erstes Führungspositionen-Gesetz – FüPoG I), Sixt SE has set the following target figures for the share of female members on the Supervisory Board and the Management Board as well as in the first two executive levels below the Management Board.

The Supervisory Board last set the target figure of 0% for the share of women serving on the Supervisory Board and the Management Board of Sixt SE on 30 June 2017, with an implementation deadline of 30 June 2022. As of 31 December 2021, these target figures were met. Neither the Supervisory Board nor the Management Board had any female members as of 31 December 2021.

On 30 June 2017, the Management Board determined that the share of women serving at the first executive level below the Management Board should be 15% and at the second executive level below the Management Board 30%, both in accordance with an implementation period up to 30 June 2022. As of 31 December 2020, the share of women serving at the first executive level below the Management Board was 17% and at the second executive level below the Management Board 30%. Consequently, the targets for both levels were met. This takes due account of the German consolidated companies of Sixt SE.

The Management Board and Supervisory Board will review the above-mentioned target figures by 30 June 2022 and set new targets taking into account the Act to Supplement and Amend the Regulations for the Equal Participation of Women and Men in Leadership Positions in the Private Sector and the Public Sector (Zweites Führungspositionen-Gesetz – FüPoG II).

Diversity concept for the Management Board and long-term succession planning

The Management Board in its entirety should have a wide range of professional expertise and views that are deemed to be of material significance for the activities of Sixt Group.

In the opinion of the Supervisory Board, a wide range of professional expertise and views among the members of the Management Board facilitates a good understanding of the organisational and business affairs of Sixt Group and enables the members of the Management Board to constructively question decisions and be open for innovative ideas.

The Supervisory Board is further of the opinion that mutually complementary professional profiles as well as different professional and educational backgrounds already follow from the duty to provide orderly business management. Furthermore, different track records and experiences among the members of the Management Board are crucial for analysing current challenges, problems and strategies from different viewpoints and then making the best possible decisions for the company.

In-depth experience in IT management and a profound understanding of digitalisation are indispensable for all topics the company covers, given the increasing digitalisation of business

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models and the high relevance of a modern IT structure, to lead the company successfully into the future.

It is also the view of the Supervisory Board that key aspects of modern management are management experience as well as intercultural competence, both best gained in an internationally active company, to successfully lead and motivate global teams. In addition, the Management Board also needs to have in-depth knowledge of accounting, finance management and the capital markets.

In its meeting on 16 June 2021, the Supervisory Board set an age limit for the members of the Management Board in accordance with the recommendation of the German Corporate Governance Code. Only persons who have not yet reached the age of 67 at the time of their first or repeated appointment to the Management Board shall be appointed members of the Management Board. With regard to gender-specific aspects of the diversity concept, the Supervisory Board has defined the target figure outlined in the above paragraph.

The Supervisory Board takes the diversity aspects described above into account when appointing the Management Board. By way of clarification, it is noted that the above diversity aspects shall always be represented by at least one member of the Management Board.

The current composition of the Management Board complies with the aspects of the diversity concept. Further details on the careers and qualifications of the Management Board members can be obtained from the company's website at ir.sixt.eu.

Together with the Management Board, the Supervisory Board takes care of the long-term succession plan for the Management Board. The Supervisory and Management Board are in regular communication regarding qualified internal and external successor candidates so as to ensure the continued further development of the company. In all these deliberations, the main focus is always on the company's interests, taking due account of all circumstances of the individual cases. The long-term succession plan takes into account, among other factors, the requirements of the German Stock Corporation Act and the Corporate Governance Code as well as the aspects of the diversity concept for the Management Board. Taking into consideration the specific qualification requirements, there is a regular exchange between the Supervisory Board, the Management Board and the management of Human Resources regarding potential internal and external candidates. These candidates take part in externally supervised assessment centres and structured interviews are conducted. Subsequently, a recommendation is submitted to the Supervisory Board.

Objectives for the composition, competence profile and diversity concept of the Supervisory Board

The company's Supervisory Board has prepared a comprehensive competence profile for its composition and formulated detailed requirements regarding the overall composition of the Board and its individual members.

The Supervisory Board needs to have a wide range of professional expertise and views that are deemed to be of material significance for the activities of Sixt Group.

In the opinion of the Supervisory Board, a wide range of professional expertise and views among the members of the Supervisory Board facilitates a good understanding of the organisational and business affairs of Sixt Group. This enables the members of the Supervisory Board to question the decisions made by the Management Board constructively as well as to be open for innovative ideas and thus contribute to the successful management of the company.

It is the Supervisory Board's overall objective to do justice to its monitoring and advisory function by having a diverse composition. Diversity means, above all, internationality and different experience perspectives and biographies. Generally, the members of the Supervisory Board should complement each other's experiences and skills, so that current challenges, problems and strategies can be analysed from different perspectives, allowing decisions to be made in the best interest of the company. It is the Supervisory Board's objective always to be in a position to competently advise and monitor the Management Board and adequately appraise and accompany new developments in the industry.

In its meeting on 22 December 2021, the Supervisory Board set an age limit for the members of the Supervisory Board in accordance with the recommendation of the German Corporate Governance Code for the future. Accordingly, as a rule, only candidates who are not older than 72 years at the time of election shall be proposed for election as members of the Supervisory Board for a full term of office. In setting this age limit, the Supervisory Board has deliberately opted for a flexible standard limit rather than a rigid requirement. This provides the necessary leeway for an appropriate consideration of the circumstances of the individual case and sufficiently broadly defines the group of

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potential candidates. With regard to gender‐specific aspects of the diversity concept, the Supervisory Board has defined the target figure outlined in the previous paragraph.

The composition of the Supervisory Board is to do justice to the criteria of internationality and industry expertise by having at least one Supervisory Board member with professional experience in an internationally active company and at least one member with professional experience in one of the areas of vehicle rental, the automotive industry, the automotive trade, vehicle leasing or travel and tourism. In addition, at least one member should have expertise in business administration.

Furthermore, the Supervisory Board of Sixt SE as a whole must be familiar with the industry in which the company operates, and according to Section 100 (5) AktG old version, at least one member of the Supervisory Board must have expertise in the fields of accounting or auditing. The provision of Section 100 (5) AktG (new version) applicable since 1 July 2021, according to which at least one member of the Supervisory Board should have expertise in the field of accounting and at least one other member of the Supervisory Board expertise in the field of auditing, is currently not yet applicable to Sixt SE, but would already be fulfilled in the current composition (see below in the section entitled Working practices of the Management Board and Supervisory Board).

According to recommendation C.6 of the German Corporate Governance Code, the Supervisory Board should include what it considers to be an appropriate number of independent members, taking the ownership structure into account. The Supervisory Board, which consists of three persons, includes Dr. Julian zu Putlitz and Dr. Daniel Terberger, an appropriate number of members in its estimation, also taking the ownership structure of Sixt SE into account, who are independent of the company and its Management Board and independent of a controlling shareholder.

The Supervisory Board takes into account the aforementioned objectives regarding the composition, competence profile and diversity aspects when proposing the election or appointment of Supervisory Board members and, in each individual case, recognises the extent to which different, mutually complementary professional profiles as well as professional and life experience benefit the work of the Supervisory Board.

Moreover, the Supervisory Board shall subject itself to a regular efficiency review. This review is aimed at monitoring the effective execution of the tasks assigned to the Supervisory Board, including a practicability assessment of the procedural rules of the Supervisory Board's by‐laws, as well as the efficiency of the Supervisory Board's work. The last review took place in December 2021. For this purpose, a questionnaire was used in which the members of the Supervisory Board gave their assessment of the effectiveness of the working methods of the Supervisory Board and were invited to suggest possible improvements. The questionnaire contained questions on the following topics, among others: the preparation of Supervisory Board meetings, the conducting of Supervisory Board meetings, the reporting and information provided by the Management Board, risk management and accounting. The evaluation of the questionnaires also took into account changes from the last review in the fall of 2019. The results of the evaluation of the questionnaires were discussed in the following regular meeting of the Supervisory Board and possibilities for improvement were discussed.

The current composition of the Supervisory Board complies with the composition objectives and fills out the competence profile and diversity concept. The Supervisory Board members have the professional and personal qualifications deemed necessary. They are familiar in their entirety with the industry in which the company operates and have the knowledge, skills and experience essential to Sixt. Further details on the careers and qualifications of the Supervisory Board members can be obtained from the company's website at ir.sixt.eu.

Relevant disclosures on Corporate Governance practices

Risk management and the control system

The practices used for managing Sixt SE and Sixt Group fully comply with the statutory provisions.

Strategic and operational management of the Group is performed on the basis of planning policies and regular comprehensive reports to the Management Board. Besides operational control systems, the reporting also covers the risk management system, the internal control system and internal auditing.

The established risk management system serves the management as an integral part of Corporate Governance to control risks in a responsible, timely and sustainable manner. Its functionality and scope are documented in the risk manual and it provides for comprehensive tools and measures to support and monitor the management in identifying, assessing and controlling risks, following up on countermeasures and implementing a sustainable risk strategy. Among other information, the Manage

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ment Board and Supervisory Board receive a comprehensive risk report every year. In addition, the Management Board is continuously informed by the functional units of the company about market trends and relevant facts in order to be able to react to a change in risk exposure at an early stage. The internal control system consists of management rules, measures and controls, to ensure compliance with legal requirements and company guidelines and to prevent uncontrolled outflows of assets, for example. It provides for continuous reports from the business units, effectiveness tests by the GRC (Governance, Risk Management & Controls) department, audit reports and regular working meetings on various topics. The internal auditing system covers measures such as plan reviews and various audits, the results of which are documented in corresponding audit reports and activity reports to the Management Board.

Compliance at Sixt Group

The success of Sixt Group is based not only on its strong business policies, but also on the economic integrity and trust that customers, suppliers, shareholders and business partners place in the Group. To win and retain this trust, it is a precondition that the Management Board and the employees of the company comply with the high standards of legislation, ethics and social skills in every situation and constantly. The Code of Conduct of Sixt SE and its affiliated companies, which is mandatory for all employees, defines these behavioural principles for the acting individuals' dealings in relation to third parties and within the company. In this Code of Conduct, the Management Board of Sixt SE defines its clear expectations of ethical and lawful conduct by all employees and business partners and thereby establishes the so-called "Tone from the Top."

This Code of Conduct is agreed upon with all employees when they first join the company as a binding element of the employment relationship and can also be accessed at any time via the central Intranet.

In addition to the general requirements and expectations for integrity and law-abiding compliance, the Code of Conduct also contains specific and more detailed information and specifications on individual compliance areas. These refer in particular to anti-corruption regulations, granting of advantages, donations and sponsoring, questions on anti-trust legislation, money laundering prevention, data protection as well as capital market law.

These generally applicable specifications are supplemented by specific implementation requirements, which come in the form of detailed individual instructions, as well as by independent compliance control loops (tax compliance and data protection, for example).

A Group-wide compliance organisation has been established to ensure that all ethical and legal requirements adopted by the Management Board are known and implemented within the Group. These comprise various individual functions and are based on the well-known Three-lines-of-defence-model: alongside the operational departments that are primarily responsible for implementation, the Compliance Officer, the Legal, Tax and Internal Controls departments are responsible for the effectiveness of the compliance processes in a coordinating or advisory capacity. As an independent auditing instance, the Group's Internal Audit body verifies the appropriateness and effectiveness of the compliance organisation as well as the implementation of and adherence to compliance requirements as part of its risk-oriented audits.

In addition to the standards and processes defined in this manner, special training seminars on specific topics are held for such sensitive areas as for example sales. In selecting its business partners, Sixt pays close attention to whether its partners comply with the same standards as defined in Sixt's Code of Conduct.

To become aware of potential compliance violations, Sixt provides different reporting channels. Thus, information can be brought to the attention of the compliance organisation via the superior, the internal Compliance Officer or the external Ombudsman. Sixt has taken precautions to ensure that notifications to the Ombudsman can be made anonymously and that the anonymity of whistleblowers can be strictly preserved in order to reduce the fear of repression for the reporting persons and thus lower the reporting threshold. In the event of relevant notifications, the Ombudsman and the Compliance Officer discuss and decide on the measures to be taken. In addition, the Compliance Officer is in regular contact with the Management Board, reports to the respective departments on the current compliance situation or individual transactions and provides support on developing and implementing preventive measures.

Sixt reviews the functionality and appropriateness of the compliance organisation at regular intervals and, if necessary, implements the necessary changes or additions as quickly as possible, due to changing regulations, market conditions or new internal structures, for example.

96 — Sixt SE Annual Report 2021

Working practices of the Management Board and Supervisory Board

As a European Stock Corporation (Societas Europaea), Sixt SE is governed by the German Stock Corporation Act, the specific European SE regulations and the German SE Implementation Act. One key principle of the Stock Corporation Act is the dualistic management system (Management Board and Supervisory Board), which is also established for Sixt SE. Sixt SE takes due account of this principle of separate management and supervisory bodies and has different personnel in the Management and Supervisory Boards of Sixt SE. Simultaneous membership in both bodies is not permitted. In accordance with Article 7 (1) and (2) of the company's Articles of Association, the Management Board of Sixt SE consists of one or more members appointed by the Supervisory Board for a maximum period of up to five years. Reappointments are generally possible. The members of the Management Board are responsible for the basic strategic orientation, the day-to-day operational business and the monitoring of the risk management of Sixt SE and Sixt Group. Sixt SE acts as the strategic and financial holding company for the Group and provides central administrative functions for various Group companies. The Management Board of Sixt SE comprised the following members in financial year 2021: Mr. Erich Sixt (as Chairman until the end of the Annual General Meeting on 16 June 2021), Alexander Sixt and Konstantin Sixt (Co-Chairmen of the Management Board since 17 June 2021), Prof. Dr. Kai Andrejewski (since 1 June 2021), Jörg Bremer (until 31 May 2021), Nico Gabriel (since 18 January 2021), Daniel Marasch (until 31 December 2021) and Detlev Pätsch (until 31 March 2021). Further information on the members of the Management Board and their memberships to be disclosed in accordance with Section 285 (10) of the German Commercial Code (HGB) can be found in the Notes to the Consolidated Financial Statements of the 2021 Annual Report in the section “Supervisory Board and Management Board of Sixt SE”.

The members of the Management Board carry out the tasks assigned to them with clear departmental responsibility in accordance with the schedule of responsibilities and the rules of procedure adopted by the Supervisory Board.

Since their appointment, the two Co-Chairmen of the Management Board have been jointly responsible for the overall management and business policies of the company, in matters relating to the shareholders, the Annual General Meeting, the Supervisory Board and Management Board, as well as in the area of SIXT TECH (software development and product management). In addition, Co-Chairman Alexander Sixt is responsible for Group Strategy and M&A, Group Purchasing, Global Human Resources, IT/EDP Strategy, Public Relations and the management of all global business services. The Co-Chairman of the Management Board, Konstantin Sixt, is responsible for national and international sales, the Group's global e-commerce business, Revenue & Capacity Management, SIXT+, marketing and strategic partnerships, in addition to his joint responsibilities with Alexander Sixt. The member of the Management Board responsible for Operations, Mr. Nico Gabriel, is responsible for the operational business, including Group-wide compliance with all public and other legal requirements for operating and holding motor vehicles and ensuring the traffic and operational safety of Sixt Group's rental vehicles. In addition, he is responsible for the areas of Global Customer Operations, Quality Management, Global Fleet Management, SIXT share, Used Car Sales, International Franchise and SIXT ride. The Management Board member for Vans & Trucks, Mr. Daniel Marasch, was responsible for the global Vans & Trucks business segment, which is now part of the Operations division. The Chief Financial Officer, Prof. Dr. Kai Andrejewski, is responsible for the areas of Corporate Finance, Fleet Purchasing, Accounting, Group Controlling, Legal, Taxes, Internal Auditing, Risk Management and Investor Relations.

Management Board meetings, at which cross-portfolio issues are discussed, are held as and when necessary. The Management Board has not established any committees.

The Supervisory Board of Sixt SE has three members in accordance with Article 10 (1) of the Articles of Association. Two members are elected by the Annual General Meeting in accordance with legal provisions and the provisions of the Articles of Association. One further member is appointed by the shareholder Mr. Erich Sixt. The Supervisory Board elects a Chairman and a Deputy Chairman from among its members (Article 12 (1) of the Articles of Association). The following personnel changes took place in the Supervisory Board of Sixt SE in financial year 2021: Mr. Friedrich Joussen, former Chairman of the Supervisory Board, and Mr. Ralf Teckentrup resigned from their respective offices with effect from the end of the Annual General Meeting on 16 June 2021. Mr. Erich Sixt was elected to the Supervisory Board of Sixt SE by the Annual General Meeting and subsequently elected its new Chairman. In addition, Dr. Julian zu Putlitz was appointed a new member of the Supervisory Board. Dr. Daniel Terberger is another member of the Supervisory Board. Dr. Terberger has been Deputy Chairman of the Supervisory Board since 16 June 2021. Further information on the members of the Supervisory Board and their memberships, which must be disclosed in accordance with Section 285 (10) of the

German Commercial Code (HGB), can be found in the Notes to the Consolidated Financial Statements in the 2021 Annual Report section “Supervisory Board and Management Board of Sixt SE”.

The Supervisory Board's main responsibilities include the appointment of Management Board members and monitoring of the Management Board. As a general rule, the Supervisory Board adopts its resolutions at meetings. If instructed by the Supervisory Board Chairman, resolutions by the Supervisory Board may also be adopted outside of meetings (or by way of a combined resolution) by casting votes verbally or by telephone, in writing (Section 126b German Civil Code (Bürgerliches Gesetzbuch)) and/or by using other means of telecommunication or electronic media (Article 14 (2) Articles of Association). Moreover, a resolution may also be validly adopted by aforementioned means without any instructions from the Chairman of the Supervisory Board if no member objects (Article 14 (3) Articles of Association). Resolutions of the Supervisory Board require a simple majority of the votes cast, unless otherwise mandatorily required by law (Article 14 (7) Articles of Association). The Report of the Supervisory Board in this Annual Report contains further details on the meetings and activities of the Supervisory Board in financial year 2021. The current Rules of Procedure of the Supervisory Board of Sixt SE are available on the company's website at ir.sixt.eu under the header “Corporate Governance.”

The Management Board and Supervisory Board cooperate closely for the benefit of Sixt Group. The Management Board informs the Supervisory Board regularly, promptly and comprehensively on all matters that are relevant to the company and the Group regarding strategic planning, business development, the risk situation and risk management as well as the results of internal audits. To this end, the Management Board arranges for the company's strategic orientation to be approved by the Supervisory Board and discusses its strategy implementation at regular intervals. Documents required to make decisions, in particular the Annual Financial Statements of Sixt SE, the Consolidated Financial Statements, the Management Report on the Group's and the company's situation, including the auditors' reports, are forwarded to the members of the Supervisory Board in good time before the respective meeting.

Committees of the Supervisory Board

The Supervisory Board established an Audit Committee and a Nomination Committee in December 2021. Their tasks, responsibilities and work processes comply with the requirements of the German Stock Corporation Act and the German Corporate Governance Code.

The Audit Committee deals in particular with the audit of the accounting, the monitoring of the accounting process, the effectiveness of the internal control system, the risk management system and the internal audit system, the audit of the financial statements and their quality and compliance, as well as the internal procedure for transactions with related parties (Section 111a (2) 2 AktG) and the approval of such transactions pursuant to Section 111b (1) AktG. The details of the working methods and responsibilities of the audit committee are defined in the Rules of Procedure for the Audit Committee, which the Supervisory Board has issued.

The members of the Audit Committee are Dr. Julian zu Putlitz (Chairman) and Dr. Daniel Terberger. The members of the Audit Committee are, as a whole, familiar with the industry in which the company operates. At least one member of the Audit Committee must have expertise in the fields of accounting or auditing (Sections 100 (5 old version), 107 (4 old version) of the German Stock Corporation Act) and the Chairman of the Audit Committee should, according to the requirements of the German Corporate Governance Code, have special knowledge and experience in the application of accounting principles and internal control procedures as well as be familiar with the auditing of financial statements and be independent. Dr. Julian zu Putlitz has expertise in the field of auditing in the sense of Sections 100 (5 old version), 107 (4) 3 old version) and meets the above-mentioned requirements of the German Corporate Governance Code. Dr. Julian zu Putlitz was also appointed the member of the Supervisory Board responsible for ESG issues in December 2021.

The provisions of Sections 100 (5) German Stock Corporation Act (new version) and 107 (4) sentence 3 German Stock Corporation Act, which have been in force since 1 July 2021 and require at least one member of the Audit Committee to have expertise in the field of accounting and at least one other member to have expertise in the field of auditing, do not currently apply to Sixt SE. Nevertheless, these requirements are also met, as Dr. Daniel Terberger is another member of the Audit Committee with expertise in the field of accounting.

The Nomination Committee is responsible for proposing qualified candidates to the Supervisory Board for the election of Supervisory Board members by the Annual General Meeting. In addition to the necessary skills and professional experience of the proposed candidates, the objectives specified by the

COMBINED MANAGEMENT REPORT CORPORATE GOVERNANCE DECLARATION

Supervisory Board for its composition, the competence profile and the diversity concept are also to be taken into account.

The members of the Nomination Committee are Mr. Erich Sixt and Dr. Daniel Terberger.

Remuneration System / Remuneration Report

The applicable remuneration system for the members of the Management Board pursuant to Section 87a (1) and (2) sentence 1 AktG, which was formed by the Annual General Meeting on 16 June 2021, as well as the resolution on the remuneration of the members of the Supervisory Board adopted by the Annual General Meeting on 16 June 2021, are publicly accessible on the website of Sixt SE at ir.sixt.eu under the header "Corporate Governance."

The Remuneration Report and the auditor's report pursuant to Section 162 AktG are made publicly available at the same Internet address.

Employee participation programmes (Matching Stock Programme, Stock Performance Programme)

Details of the employee participation programmes are set out in the Notes to the Consolidated Financial Statements under "Share-based payment."

Notification of managers' transactions

In accordance with Article 19 of the Regulation (EU) no. 596/2014 of the European Parliament and the Council on market abuse (European Market Abuse Directive), members of the Management and Supervisory Boards of Sixt SE as well as persons closely associated with them are legally required to report their own transactions with shares or bonds of Sixt SE and their related financial derivatives or other related financial instruments to Sixt SE and the Bundesanstalt für Finanzdienstleistungs-aufsicht (German Federal Financial Supervisory Authority), as long as the aggregated total of the transactions conducted by the respective person reaches or exceeds the sum of EUR 20,000 within a calendar year. The transaction notifications received by Sixt SE during the preceding financial year were duly published and can be retrieved on the website of Sixt SE at ir.sixt.eu under the header „Investor Relations – Corporate Governance – Managers' Transactions".

Disclosures relating to the auditor

On 16 June 2021, the Annual General Meeting adopted the proposal of the Supervisory Board to appoint Deloitte GmbH Wirtschaftsprüfungsgesellschaft, Munich, as the auditor for Sixt SE and Sixt Group for financial year 2021 and as the auditor for any review of financial reports/financial information of Sixt SE for financial year 2021 and for financial year 2022 in the period up to the 2022 Annual General Meeting. Auditing companies from the Deloitte Group are auditing the majority of the companies included in the Consolidated Financial Statements that require such audits. Deloitte GmbH Wirtschaftsprüfungsgesellschaft has been the auditor of Sixt SE (formerly Sixt Aktiengesellschaft) since the 2005 Annual Financial Statements. The auditor Klaus Löffler has been the auditor responsible for conducting the audit since the 2019 Annual Financial Statements. Details on the auditor's fees can be found in the Notes to the Consolidated Financial Statements in the 2021 Annual Report under Note \4.6\ Other operating expenses.

Sixt SE Annual Report 2021 — 99

COMBINED MANAGEMENT REPORT

ADDITIONAL INFORMATION FOR SIXT SE PURSUANT TO HGB

B.10 ADDITIONAL INFORMATION FOR SIXT SE PURSUANT TO HGB

Fundamentals and business performance

Sixt SE (European Stock Corporation – Societas Europaea) is the parent company that acts as the holding company for the Sixt Group. The legal form “SE” of the holding reflects the Group’s strong international orientation. Sixt SE assumes the central administrative and management tasks and is responsible for the strategic and financial management of the Group. Sixt SE has registered branches in Leipzig and at Munich Airport.

In its function Sixt SE’s business performance, net assets, financial position and results of operations as well as its risks and opportunities are essentially dependent on the development of Sixt Group’s consolidated companies.

Business performance of Sixt SE is characterised by the services provided to its subsidiaries; by the financing requirements and the proceeds distributed or transferred by Sixt Group’s subsidiaries. The Annual Financial Statements of Sixt SE are prepared pursuant to (German) commercial law and the legal stipulations on stock corporations and serve as the basis for the financial year’s allocation of the unappropriated profit to be approved by the Annual General Meeting.

Net assets, financial position and results of operations

For its services rendered, Sixt SE receives remunerations of EUR 95.5 million (2020: EUR 30.5 million). The increase stems from the recovering business activities of the subsidiaries, after the previous year’s decline due to the coronavirus pandemic. Other operating income includes, among others, income from forwarding costs and in the previous year also the income from the sale of the stake in Sixt Leasing SE of EUR 129.4 million. Besides this, Sixt SE receives EUR 41.4 million (2020: EUR 31.6 million) from financing services and income from investments, and earnings transfers of EUR 100.9 million (2020: EUR 43.8 million). This is set off by personnel and operational expenses of EUR 246.2 million (2020: EUR 182.2 million) as well as interest and similar expenses of EUR 30.6 million (2020: EUR 28.8 million). There were loss transfers in the year under review in the amount of EUR 0.0 million (2020: EUR 1.6 million). The taxes on income are at EUR 16.8 million (2020: EUR 8.6 million). Net income for the period under review is EUR 76.1 million (2020: EUR 125.2 million).

Sixt SE’s significant assets consist of shareholdings in affiliated companies and investments of EUR 875.2 million (2020: EUR 860.4 million). In addition, Sixt SE recognises receivables from affiliated companies and investments of EUR 1,752.4 million (2020: EUR 1,861.6 million).

As in the year before, the share capital of Sixt SE amounts to EUR 120.2 million. The equity reported amounts to EUR 890.7 million (2020: EUR 815.4 million).

Significant financial liabilities are the outstanding bonds of EUR 800.0 million (2020: EUR 800.0 million), liabilities from borrower’s note loans in the amount of EUR 718.5 million (2020: EUR 995.0 million). Further to these, Sixt SE has liabilities to affiliated companies of EUR 342.4 million (2020: EUR 227.7 million).

100 — Sixt SE Annual Report 2021

COMBINED MANAGEMENT REPORT
ADDITIONAL INFORMATION FOR SIXT SE PURSUANT TO HGB

Risks, opportunities and outlook

As far as its opportunities and risks are concerned, Sixt SE's development is essentially dependent on the performance of the operating companies within the Sixt Group. To this extent, the overall assessment in the report on risks and opportunities of the Sixt Group serves as reference. The economic development of Sixt SE is likewise significantly determined by the performance, financing requirements and earnings strength of the Sixt Group's companies. Their earnings distributions are directly or indirectly determined by the resolutions of Sixt SE. In line with its expectations regarding the general interest rates and results of the operating subsidiaries, and with explicit reference to the uncertain overall geopolitical and economic situation, Sixt SE expects for the current financial year stable earnings before taxes.

Investments

As part of its financing function within the Sixt Group, Sixt SE will provide consolidated companies with loans and funds in the form of equity when required. Potential company start-ups or acquisitions could require investments to be made by Sixt SE.

Pullach, 28 March 2022

Sixt SE

The Management Board

ALEXANDER SIXT	KONSTANTIN SIXT	PROF. DR. KAI ANDREJEWSKI	NICO GABRIEL

Sixt SE Annual Report 2021 — 101

CONSOLIDATED FINANCIAL STATEMENTS

C.1 104 _ CONSOLIDATED INCOME STATEMENT AND STATEMENT OF COMPREHENSIVE INCOME
C.2 106 _ CONSOLIDATED BALANCE SHEET
C.3 107 _ CONSOLIDATED CASH FLOW STATEMENT
C.4 109 _ CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
C.5 110 _ NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

110 _ General disclosures
1.1 110 _ Information about the company
1.2 110 _ General disclosures on the consolidated financial statements
111 _ Consolidation
2.1 111 _ Consolidated companies
2.2 115 _ Changes in the scope of consolidation
2.3 115 _ Consolidation methods
2.4 116 _ Foreign currency translation
116 _ Reporting and valuation methods
3.1 116 _ Income statement
3.2 117 _ Assets
3.3 120 _ Equity and liabilities
3.4 121 _ Hedging relationship
3.5 121 _ Estimation uncertainties and discretionary decisions

102 — Sixt SE Annual Report 2021

Sixt SE Annual Report 2021—103

122 Explanations and disclosures on individual items of the consolidated financial statements
4.1 122 Consolidated income statement
4.2 128 Consolidated balance sheet
4.3 142 Additional disclosures on financial instruments
149 Other disclosures
5.1 149 Segment reporting
5.2 150 Contingent liabilities and other financial obligations
5.3 150 Share-based payments
5.4 153 Related party disclosure
5.5 155 Proposal for allocation of the unappropriated profit
5.6 156 Events subsequent to reporting date
5.7 156 Declaration of conformity in accordance with section 161 of the AktG
5.8 156 Authorisation of the consolidated financial statements in accordance with IAS 10.17

CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED INCOME STATEMENT AND STATEMENT OF COMPREHENSIVE INCOME

C CONSOLIDATED FINANCIAL STATEMENTS

C.1 CONSOLIDATED INCOME STATEMENT AND STATEMENT OF COMPREHENSIVE INCOME

of Sixt SE, Pullach, for the year ended 31 December 2021

Consolidated Income Statement
in EUR thousand	Notes	2021	2020
Revenue	14.11.	2,282,448	1,532,089
Other operating income	14.21.	157,268	181,775
Fleet expenses	14.31.	506,496	429,295
Personnel expenses	14.41.	405,286	339,252
a) Wages and salaries		348,616	286,823
b) Social security contributions		56,670	52,429
Depreciation and amortisation expense including impairments	14.51.	370,039	458,083
a) Depreciation of rental vehicles		238,410	294,418
b) Depreciation of property and equipment		126,201	149,069
c) Amortisation of intangible assets		5,428	14,597
Other operating expenses	14.61.	678,717	535,938
Earnings before interest and taxes (EBIT)		479,178	-48,705
Financial result	14.71.	-37,009	-32,841
a) Interest income		766	2,730
b) Interest expense		37,849	37,250
c) Other net financial income		75	1,680
Earnings before taxes (EBT)		442,169	-81,546
Income tax expense	14.81.	129,019	17,262
Result from continuing operations		313,150	-98,808
Result from discontinued operations, net of taxes	14.91.	-	100,775
Consolidated profit/loss		313,150	1,967
Of which attributable to minority interests	14.101.	3	35,213
Of which attributable to shareholders of Sixt SE		313,148	-33,246
Earnings per ordinary share – basic from continuing operations (in EUR)1	14.111.	6.66	-2.12
Earnings per ordinary share – basic from discontinued operations (in EUR)1	14.111.	-	1.39
Earnings per preference share – basic from continuing operations (in EUR)1	14.111.	6.68	-2.09
Earnings per preference share – basic from discontinued operations (in EUR)1	14.111.	-	1.41

1 The diluted earnings per share correspond to the basic earnings per share

104 — Sixt SE Annual Report 2021

CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED INCOME STATEMENT AND STATEMENT OF COMPREHENSIVE INCOME

Consolidated Statement of Comprehensive Income
in EUR thousand	Notes	2021	2020
Consolidated profit/loss		313,150	1,967
Other comprehensive income (not recognised in the income statement)		38,469	-26,040
Components that could be recognised in the income statement in future
Currency translation gains/losses		44,677	-31,472
Amounts reclassified due to recognition in the income statement		-	-2,336
Changes in the fair value of derivative financial instruments in hedge relationship		572	-373
Related deferred taxes		-143	71
Components that could not be recognised in the income statement in future
Remeasurement of defined benefit plans	14,251	479	848
Related deferred taxes		-62	-124
Remeasurement of equity investments		-7,143	7,439
Related deferred taxes		89	-93
Total comprehensive income		351,619	-24,073
Of which attributable to minority interests		3	35,050
Of which attributable to shareholders of Sixt SE		351,617	-59,123
From continuing operations		351,617	-123,911
From discontinued operations		-	64,788

Sixt SE Annual Report 2021 — 105

CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED BALANCE SHEET

C.2 CONSOLIDATED BALANCE SHEET

of Sixt SE, Pullach, as at 31 December 2021

Assets
in EUR thousand	Notes	31 Dec. 2021	31 Dec. 2020
Non-current assets
Goodwill	14.12	18,442	18,442
Intangible assets	14.13	28,164	20,080
Property and equipment	14.14	550,849	543,957
Investment property	14.15	6,779	-
Financial assets	14.16	2,911	9,934
Other receivables and assets	14.20	7,614	4,716
Deferred tax assets	14.8	31,689	43,612
Total non-current assets		646,448	640,740
Current assets
Rental vehicles	14.17	2,846,816	2,204,570
Inventories	14.18	27,056	81,330
Trade receivables	14.19	514,778	530,043
Other receivables and assets	14.20	185,960	198,368
Income tax receivables		34,268	20,113
Cash and bank balances	14.21	265,835	753,322
Total current assets		3,874,713	3,787,746
Total assets		4,521,162	4,428,486
Equity and Liabilities
in EUR thousand	Notes	31 Dec. 2021	31 Dec. 2020
Equity
Subscribed capital	14.22	120,175	120,175
Capital reserves	14.23	200,538	197,280
Other reserves	14.24	1,425,473	1,077,253
Total equity		1,746,186	1,394,709
Non-current liabilities and provisions
Provisions for pensions and other post-employment benefits	14.25	3,051	3,141
Other provisions	14.26	16,748	515
Financial liabilities	14.27	1,602,688	1,928,579
Deferred tax liabilities	14.8	14,111	5,078
Total non-current liabilities and provisions		1,636,598	1,937,313
Current liabilities and provisions
Other provisions	14.26	142,445	94,300
Income tax liabilities		52,632	22,555
Financial liabilities	14.27	398,661	449,612
Trade payables	14.29	401,729	422,813
Other liabilities	14.28	142,910	107,184
Total current liabilities and provisions		1,138,377	1,096,464
Total equity and liabilities		4,521,162	4,428,486

Sixt SE Annual Report 2021

CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED CASH FLOW STATEMENT

C.3 CONSOLIDATED CASH FLOW STATEMENT

of Sixt SE, Pullach, for the year ended 31 December 2021

Consolidated Cash Flow Statement
in EUR thousand	Notes	2021	2020
Operating activities
Consolidated profit/loss		313,150	1,967
Result from discontinued operations, net of taxes	14.91	-	-60,643
Income from disposal of discontinued operations, net of taxes	14.91	-	-40,132
Income taxes recognised in income statement	14.81	106,486	22,386
Income taxes paid		-90,565	-21,947
Financial result recognised in income statement1	14.71	37,083	34,520
Interest received		919	1,813
Interest paid		-34,572	-39,834
Depreciation and amortisation including impairments	14.51	370,039	458,083
Income from disposal of fixed assets		2,534	794
Other (non-)cash expenses and income		48,517	-37,969
Gross cash flow		753,592	319,038
Depreciation and impairments on rental vehicles	14.51	-238,410	-294,418
Gross cash flow before changes in working capital		515,182	24,620
Change in rental vehicles	14.171	-642,246	828,794
Change in inventories	14.181	54,274	-29,595
Change in trade receivables	14.191	15,265	154,014
Change in trade payables	14.291	-21,084	-352,063
Change in other net assets		157,721	15,501
Net cash flows from operating activities of continued operations		79,112	641,269
Net cash flows from operating activities of discontinued operations		-	28,012
Net cash flows from operating activities		79,112	669,281
Investing activities
Proceeds from disposal of intangible assets, property and equipment		70	1,729
Proceeds from disposal of discontinued operations net of disposed cash and cash equivalents2		-	36,757
Payments for investments in intangible assets, property and equipment	14.121 bis 14.141	-35,023	-22,158
Payments for investments in financial assets	14.161	-85	-
Payments for investments in short-term deposits		-50,024	-
Net cash flows used in/from investing activities of continuing operations		-85,062	16,328
Net cash flows used in investing activities of discontinued operations		-	-3,716
Net cash flows used in/from investing activities		-85,062	12,612

1 Excluding income from investments
2 Including in the previous year disposed cash and cash equivalents of the discontinued Leasing business unit in the amount of EUR 118.8 million

Sixt SE Annual Report 2021 — 107

CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED CASH FLOW STATEMENT

Consolidated Cash Flow Statement
in EUR thousand	Notes	2021	2020
Financing activities
Payments made due to the purchase of treasury shares		-	-5,991
Dividends paid		-829	-829
Payments made for the purchase of minority interests		-160	-
Payments received from taken out borrower's note loans, bonds and bank loans	14.27	315,000	766,000
Payments made for redemption of borrower's note loans, bonds, bank loans and lease liabilities	14.27	-833,300	-801,365
Payments made for redemption of/payments received from taken out short-term financial liabilities³	14.27	29,990	-146,640
Net cash flows used in financing activities of continuing operations		-489,299	-188,825
Net cash flows from financing activities of discontinued operations		-	99,183
Net cash flows used in financing activities		-489,299	-89,642

Net change in cash and cash equivalents		-495,249	592,252
Effect of exchange rate changes on cash and cash equivalents		7,721	-9,448
Changes in the scope of consolidation		40	-
Cash and cash equivalents at 1 Jan.		753,322	170,519
Cash and cash equivalents at 31 Dec.	14.21	265,835	753,322

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

108 — Sixt SE Annual Report 2021

CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

C.4 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

of Sixt SE, Pullach, as at 31 December 2021

Consolidated Statement of Changes in Equity	Subscribed capital	Capital reserves	Other reserves			Treasury shares	Equity attributable to shareholders of Sixt SE	Minority interests	Total equity
			Retained earnings	Currency translation reserve	Other equity
in EUR thousand
1 Jan. 2021	120,175	197,280	212,439	-23,808	888,622	-	1,394,709	-	1,394,709
Consolidated profit/loss	-	-	-	-	313,148	-	313,148	3	313,150
Dividend payments 2020	-	-	-	-	-829	-	-829	-	-829
Other comprehensive income	-	-	-	44,677	-6,208	-	38,469	-	38,469
Increase due to the employee participation programme	-	809	-	-	-	-	809	-	809
Changes in the scope of consolidation	-	-	-248	-	248	-	-	-	-
Purchase of minority interests	-	-	-120	-	-	-	-120	-40	-160
Transfer to retained earnings	-	-	13,562	-	-13,562	-	-	-	-
Transfer to capital reserves	-	2,449	-	-	-2,449	-	-	-	-
Other changes	-	-	-	-	-	-	-	38	38
31 Dec. 2021	120,175	200,538	225,633	20,869	1,178,971	-	1,746,186	-	1,746,186
1 Jan. 2020	120,175	240,659	208,597	10,140	879,882	-	1,459,454	132,701	1,592,154
Consolidated profit/loss	-	-	-	-	-33,246	-	-33,246	35,213	1,967
Dividend payments 2019	-	-	-	-	-829	-	-829	-10,770	-11,599
Other comprehensive income	-	-	-	-33,947	8,071	-	-25,877	-163	-26,040
Purchase of treasury shares	-	-	-	-	-	-5,991	-5,991	-	-5,991
Re-issuance of treasury shares	-	-	-	-	-	5,991	5,991	-	5,991
Increase due to the employee participation programme	-	1,073	-	-	-	-	1,073	11	1,085
Disposal from the exercise under the employee participation programme	-	-5,866	-	-	-	-	-5,866	-	-5,866
Changes in the scope of consolidation	-	-38,587	-2,247	-	40,834	-	-	-156,986	-156,986
Other changes	-	-	6,088	-	-6,089	-	-1	-5	-6
31 Dec. 2020	120,175	197,280	212,439	-23,808	888,622	-	1,394,709	-	1,394,709

See Notes 14.221 to 14.241

Sixt SE Annual Report 2021 — 109

CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

C.5 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

of Sixt SE, Pullach, for the year ended 31 December 2021

1. GENERAL DISCLOSURES

1.1 INFORMATION ABOUT THE COMPANY

Sixt SE, domiciled in Zugspitzstrasse 1, 82049 Pullach, Germany, is registered in section B of the commercial register at the Munich Local Court, under docket number 206738. The company was formed in 1986 as a result of a reorganisation of "Sixt Autovermietung GmbH", established in 1979, and has done business 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.

In accordance with its Articles of Association, the purpose of the company is to rent, lease and sell vehicles, aircraft and moveable equipment, to manage, acquire, administer and provide support for companies and equity interests in companies, particularly those whose purpose wholly or partly extends to the aforementioned areas of activity, and to carry out any secondary activities that fall within these areas in the widest sense, as well as any other business activities that serve its purpose. The company can establish branches at home and abroad, found, acquire or hold equity interests stakes in other companies in and outside Germany. The limits of aforementioned purpose shall not apply to the purpose of subsidiaries and investees. The company is entitled to hand over its operations wholly or partly to subsidiaries or investees as well as to transfer its operations wholly or partly to subsidiaries or investees. The company can limit its activities to one or specific purposes of the aforementioned objects, and also to the activity of a holding company and/or the administration of other own assets.

At the reporting date, 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. In accordance with Section 17 of the AktG, Sixt SE is a dependent company of Erich Sixt Vermögensverwaltung GmbH, Pullach, as well as ES Asset Management and Services GmbH & Co. KG, Pullach.

1.2 GENERAL DISCLOSURES ON THE CONSOLIDATED FINANCIAL STATEMENTS

The Consolidated Financial Statements of Sixt SE as at 31 December 2021 were prepared in accordance with International Financial Reporting Standards (IFRSs), as adopted by the EU and the applicable commercial law regulations according to Section 315e (1) of the HGB (German Commercial Code).

The Consolidated Financial Statements were prepared on the basis of the historical acquisition and production costs. Excluded are certain financial instruments that were measured at fair value as of reporting date. The appropriate explanations are given in the sections entitled "Reporting and valuation methods" and "Additional disclosures on financial instruments".

The company applied the following new and/or amended standards for the first time in the current financial year:

Amendments to IFRS 16 – COVID-19-related pandemic-related rent concessions beyond 30 June 2021

The Group has applied the amendments to IFRS 16 (Coronavirus pandemic-related rent concessions) already early in financial year 2020. The amendments permit the Group as lessee, as a practical expedient, to elect not to assess whether rent concessions of the lessor occurring as a direct consequence of coronavirus pandemic are a lease modification. Any qualifying rent concessions are accounted as variable rent payments. The practical expedient was originally limited to rent concessions for rent payments that were due up to 30 June 2021. In the financial year with a further amendment to IFRS 16 this practical expedient was extended to rent payments that were originally due on or before 30 June 2022. The Group has early applied this amendment in the current financial year.

Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 – Interest rate benchmark reform – phase 2

The amendments provide adopters temporary exemption for the impact on the financial reporting resulting from the replacement of inter-bank offered rates (IBOR) to alternative, almost risk-free interest rates (risk-free rates [RFR]).

Sixt SE Annual Report 2021

CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The amendments refer to the accounting of the modification of financial assets, financial liabilities and lease liabilities through the IBOR reform, requirements relating to hedge accounting and disclosure on financial instruments according to IFRS 7. This had no material impact on the Consolidated Financial Statements.

Further new and/or amended standards/interpretations are not relevant for the Consolidated Financial Statements of Sixt SE.

New standards and interpretations

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

Standard/Interpretation		Adoption by European Commission	Applicable as at
IFRS 17	Insurance contracts	19 Nov. 2021	1 Jan. 2023
Amendments to IAS 1	Classification of liabilities as current or non-current	No	1 Jan. 2023
Amendments to IAS 1	Disclosure of accounting policies	2 Mar. 2022	1 Jan. 2023
Amendments to IFRS 3	Business combinations – Reference to the conceptual framework	28 June 2021	1 Jan. 2022
Amendments to IAS 8	Definition of accounting estimates	2 Mar. 2022	1 Jan. 2023
Amendments to IAS 12	Deferred tax related to assets and liabilities arising from a single transaction	No	1 Jan. 2023
Amendments to IAS 16	Property, plant and equipment – Proceeds before intended use	28 June 2021	1 Jan. 2022
Amendments to IFRS 17	Initial application of IFRS 17 and IFRS 9 – Comparative information	No	1 Jan. 2023
Amendments to IAS 37	Onerous contracts – Cost of fulfilling a contract	28 June 2021	1 Jan. 2022
	Annual improvement project 2018–2020	28 June 2021	1 Jan. 2022

Application of new standards and interpretations

No material changes are expected from the application of other published new and/or amended standards and interpretations. The Sixt Group currently does not expect to apply any of the new and/or amended standards early.

The consolidated income statement is prepared using the total cost (nature of expense) method.

The Group currency of Sixt SE is Euro (EUR). Unless specified otherwise the amounts listed in the Consolidated Financial Statements are given in "EUR thousand".

Due to rounding it is possible that individual figures in these Consolidated Financial Statements do not add up exactly to the totals shown. For the same reason, the percentage figures presented may not always exactly reflect the absolute figures to which they relate to.

The Annual Financial Statements of Sixt SE, the c Consolidated Financial Statements and the Combined Management Report are published in the Federal Gazette (Bundesanzeiger).

2. CONSOLIDATION

2.1 CONSOLIDATED COMPANIES

The scope of consolidated companies derives from the application of IFRS 10 (consolidated financial statements) and IFRS 11 (joint arrangements).

The Consolidated Financial Statements of Sixt SE as at 31 December 2021 include the following fully consolidated companies (the equity interest corresponds to the voting power).

Sixt SE Annual Report 2021 — 111

CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Name	Domicile	Equity interest
1501 NW 49 ST 33309, LLC	Wilmington	100%
AKRIMO Beteiligungs GmbH	Pullach	100%
AKRIMO GmbH & Co. KG	Pullach	100%
Attic Rent SARL	Chambray-lès-Tours	100%
Azucaroc SARL	Cannes	100%
Benezet Location SARL	Nimes	100%
BLM Verwaltungs GmbH	Pullach	100%
Blueprint Holding GmbH & Co. KG	Pullach	100%
Bopobloc SARL	Mérignac	100%
Brenoloc SARL	Rennes	100%
Capitole Autos SARL	Toulouse	100%
Eaux Vives Location SARL	Grenoble	100%
Eiffel City Rent SARL	Neuilly-sur-Seine	100%
Europa Service Car Ltd.	Chesterfield	100%
Flash Holding GmbH & Co. KG	Pullach	100%
Francisud Location SARL	Athis-Mons	100%
Lightning Holding GmbH & Co. KG	Pullach	100%
Matterhorn Holding GmbH & Co. KG	Pullach	100%
Mobimars SARL	Marignane	100%
Nizza Mobility SARL	Nice	100%
Ory Rent SARL	Orly	100%
Phocemoove SARL	Marseille	100%
Rail Paris Mobility SARL	Paris	100%
RhôneSaône Mobility SARL	Colombier-Saugnieu	100%
Septentri Loc SARL	Marcq-en-Baroeul	100%
Sigma Grundstücks- und Verwaltungs GmbH	Pullach	100%
Sigma Grundstücks- und Verwaltungs GmbH & Co. Immobilien KG	Pullach	100%
Sigma Pi Holding GmbH & Co. KG	Pullach	100%
SIL CAP, LLC	South Burlington	100%
Sixt Air GmbH	Weßling	100%
Sixt Asset and Finance SAS	Avrigny	100%
Sixt B.V.	Hoofddorp	100%
Sixt Belgium BV	Machelen	100%
Sixt Beteiligungen GmbH & Co. Holding KG	Pullach	100%
Sixt Canadian Holding GmbH	Pullach	100%
Sixt Car Sales GmbH	Garching	100%
Sixt Car Sales, LLC	Wilmington	100%
Sixt Développement SARL	Paris	100%

112 — Sixt SE Annual Report 2021

CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Table continued:

Name	Domicile	Equity interest
Sixt Fleet Transfer LLC	Wilmington	100%
Sixt Franchise USA, LLC	Wilmington	100%
Sixt Funding Associate LLC	Wilmington	100%
Sixt Funding LLC	Wilmington	100%
Sixt G.m.b.H.	Vienna	100%
Sixt GmbH	Munich	100%
Sixt GmbH & Co. Autovermietung KG	Pullach	100%
Sixt Insurance Services PCC Ltd.	St. Peter Port	100%
Sixt International Services GmbH	Pullach	100%
Sixt Limousine SARL	Clichy	100%
Sixt Limousine Switzerland AG (in liquidation)	Basle	100%
Sixt Plc	Langley	100%
Sixt R&D Private Limited	Bangalore	100%
SIXT RENT A CAR INC.	Vancouver	100%
Sixt Rent A Car Ltd.	Langley	100%
SIXT RENT A CAR S.L.U.	Palma de Mallorca	100%
Sixt rent a car srl	Eppan	100%
Sixt Rent A Car, LLC	Wilmington	100%
Sixt rent-a-car AG	Basle	100%
Sixt Ride GmbH & Co. KG	Pullach	100%
Sixt Ride Holding GmbH & Co. KG	Pullach	100%
SIXT S.A.R.L.	Monaco	100%
SIXT S.à.r.l.	Luxembourg	100%
Sixt SAS	Avrigny	100%
Sixt Seine SARL	Paris	100%
Sixt Shack 2821S Federal Highway FLL, LLC	Wilmington	100%
Sixt Systems GmbH	Pullach	100%
Sixt Titling Trust	Wilmington	100%
Sixt Transatlantik GmbH	Pullach	100%
Sixt Ventures GmbH	Pullach	100%
Sixt Verwaltungsgesellschaft mit beschränkter Haftung & Co. Delta Immobilien KG	Pullach	100%
Sixt Verwaltungsgesellschaft mit beschränkter Haftung & Co. Epsilon Immobilien KG	Pullach	100%
Sixt Verwaltungsgesellschaft mit beschränkter Haftung & Co. Gamma Immobilien KG	Pullach	100%
Sixt Verwaltungsgesellschaft mit beschränkter Haftung & Co. Sita Immobilien KG	Pullach	100%
Sixti SARL	Tremblay-en-France	100%
Smaragd International Holding GmbH	Pullach	100%
Speed Holding GmbH & Co. KG	Pullach	100%
SXT Beteiligungsverwaltungs GmbH	Pullach	100%
SXT Dienstleistungen GmbH & Co. KG	Rostock	100%

Sixt SE Annual Report 2021 — 113

CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Table continued:

Name	Domicile	Equity interest
SXT DR Services GmbH	Pullach	100%
SXT International Projects and Finance GmbH	Pullach	100%
SXT Projects and Finance GmbH	Pullach	100%
SXT Reservierungs- und Vertriebs-GmbH & Co. KG	Rostock	100%
SXT Retina Lab GmbH & Co. KG	Pullach	100%
SXT Services GmbH & Co. KG	Pullach	100%
SXT Telesales GmbH	Berlin	100%
Tango International Holding GmbH	Pullach	100%
TOV 6-Systems	Kiev	100%
United Kenning Rental Group Ltd.	Langley	100%
United Mile Fleet, LLC	Sunrise	100%
United Rental Group America Limited	Chesterfield	100%
United Rental Group Ltd.	Chesterfield	100%
United Rentalsystem SARL	Mulhouse	100%
Urbanizy Loc SARL	Paris	100%
Utilymoov SARL	Roissy-en-France	100%
Varmayol Rent SARL	La Valette-du-Var	100%
Velocity Holding GmbH & Co. KG	Pullach	100%
Wezz Rent SARL	Bouguenais	100%

The following list shows all Group companies which have not been consolidated. These subsidiaries, most of which have no operating activities, have not been consolidated because of their insignificance in the aggregate for the presentation of a true and

fair view of the net assets, financial position and results of operations of the Group. The combined revenue of these companies amounts to less than 1% of consolidated revenue.

Name	Domicile	Equity	Equity interest	Annual result
CV Main 2000 UA¹	Schiphol	505,814 EUR	50%	- EUR
Sixt Beteiligungen GmbH	Pullach	15,468 EUR	100%	-2,098 EUR
Sixt Immobilien Beteiligungen GmbH	Pullach	201,473 EUR	100%	5,405 EUR
Sixt Ride Holding Verwaltungs GmbH	Pullach	17,503 EUR	100%	-2,149 EUR
Sixt Ride Verwaltungs GmbH	Pullach	16,092 EUR	100%	-2,426 EUR
Sixt Verwaltungs B.V.	Hoofddorp	43,291 EUR	100%	-6,301 EUR
Sixt Verwaltungs-GmbH	Vienna	42,036 EUR	100%	-25,597 EUR
SXT Projects and Services GmbH	Pullach	25,000 EUR	100%	-3,282 EUR
SXT Projects GmbH	Pullach	25,000 EUR	100%	- EUR
SXT Retina Lab Verwaltungs GmbH	Pullach	15,875 EUR	100%	3,130 EUR
SXT V+R Verwaltungs GmbH	Rostock	18,592 EUR	100%	-1,578 EUR
SXT Verwaltungs GmbH	Pullach	20,256 EUR	100%	-1,717 EUR
TÜV SÜD Car Registration & Services GmbH	Munich	1,634,368 EUR	50%	245,865 EUR

¹ Financial figures for financial year 2020

114 — Sixt SE Annual Report 2021

In accordance with Section 264b of the HGB, the following companies are exempt from the duty to prepare and publish annual financial statements under the provisions applicable to corporations: Akrimo GmbH & Co. KG, Pullach, Blueprint Holding GmbH & Co. KG, Pullach, Flash Holding GmbH & Co. KG, Pullach, Lightning Holding GmbH & Co. KG, Pullach, Matterhorn Holding GmbH & Co. KG, Pullach, Sigma Grundstücks- und Verwaltungs GmbH & Co. Immobilien KG, Pullach, Sigma Pi Holding GmbH & Co. KG, Pullach, Sixt Beteiligungen GmbH & Co. Holding KG, Pullach, Sixt GmbH & Co. Autovermietung KG, Pullach, Sixt Ride GmbH & Co. KG, Pullach, Sixt Ride Holding GmbH & Co. KG, Pullach, Sixt Verwaltungsgesellschaft mit beschränkter Haftung & Co. Delta Immobilien KG, Pullach, Sixt Verwaltungsgesellschaft mit beschränkter Haftung & Co. Epsilon Immobilien KG, Pullach, Sixt Verwaltungsgesellschaft mit beschränkter Haftung & Co. Gamma Immobilien KG, Pullach, Sixt Verwaltungsgesellschaft mit beschränkter Haftung & Co. Sita Immobilien KG, Pullach, Speed Holding GmbH & Co. KG, Pullach, SXT Dienstleistungen GmbH & Co. KG, Rostock, SXT Reservierungs- und Vertriebs-GmbH & Co. KG, Rostock, SXT Retina Lab GmbH & Co. KG, Pullach, SXT Services GmbH & Co. KG, Pullach, as well as Velocity Holding GmbH & Co. KG, Pullach. Sixt Transatlantik GmbH, Pullach, Smaragd International Holding GmbH, Pullach, SXT International Projects and Finance GmbH, Pullach, and SXT Projects and Finance GmbH, Pullach, make use of the exemption with regard to publication provided in Section 264 (3) of the HGB.

2.2 CHANGES IN THE SCOPE OF CONSOLIDATION

The following further changes in the consolidated Group as against the end of 2020 occurred:

The companies Sixt Canadian Holding GmbH, Pullach, und SIXT RENT A CAR INC. Vancouver, that were founded by the Sixt Group have been newly consolidated.

The first-time consolidation had no noteworthy effects on the Group's net assets, financial position and results of operations.

The liquidation of Sixt Aéroport SARL, Paris, has been completed in financial year 2021.

In addition Sixt ONE Systems GmbH, Pullach, has been merged into Sixt GmbH & Co. Autovermietung KG, Pullach, Sixt Executive GmbH, Garching, into BLM Verwaltungs GmbH, Pullach, and Sixt Limousine Austria GmbH, Vösendorf, into Sixt G.m.b.H. Vienna.

2.3 CONSOLIDATION METHODS

The single-entity financial statements included in the Consolidated Financial Statements are uniformly prepared in accordance with the IFRS accounting policies applicable to the Sixt Group as at the balance sheet date, in this case 31 December 2021. Where necessary, the single-entity financial statements of the consolidated companies are adjusted to bring them into line with the accounting policies used within the Group. Subsidiaries are those companies which are controlled by the Group. Control exists if the Group is exposed to variable returns from the relationship with a company and its power over the relevant activities gives it the opportunity to influence these returns. Control results from existing rights that give it the ability to direct the main activities, therefore the activities which have a material impact on the profitability of the company. As a rule, the possibility of control is based on a direct or indirect majority of the voting rights by Sixt SE. Subsidiaries are consolidated from the date on which the possibility of control exists. They are no longer consolidated when this possibility no longer exists.

Acquisition accounting is performed in accordance with IFRS 3, which requires business combinations to be accounted for using the acquisition method. Assets and liabilities acquired must generally be recognised at fair value. Any excess of the cost of the business combination over the Group's share of the net fair values of the acquiree's assets, liabilities and contingent liabilities is recognised as goodwill and tested for impairment on a regular basis, and at least once a year.

The assets and liabilities from the business combination to be recognised at their fair values are depreciated or amortised over their applicable useful lives. If they have an indefinite useful life, any need to recognise impairment losses is determined using the same method as for goodwill.

Intra-group transactions are eliminated in the course of consolidation. Significant receivables, liabilities and provisions between consolidated companies are offset against each other, and intercompany profits and losses are eliminated. Intra-group income is offset against the corresponding expenses. Deferred taxes are recognised as required by IAS 12 for temporary differences arising on consolidation.

The results of subsidiaries consolidated for the first time during the year are included in the consolidated income statement from the date of their initial consolidation.

CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

2.4 FOREIGN CURRENCY TRANSLATION

The financial statements of consolidated foreign subsidiaries are translated using the functional currency concept. The subsidiaries' functional currency is in each case the local currency, as the subsidiaries operate independently in their respective markets. Assets and liabilities are translated at the closing rate, equity at historic prices. Income statement items are translated at the average rates for the year. The resulting difference as against the closing rate is recognised in other comprehensive income and accumulated in equity as currency translation differences.

Goodwill arising out of the acquisition of a foreign business operation and any fair value adjustments to the identifiable assets and liabilities will be treated as assets and liabilities of the foreign operation and translated at the closing rate. The resulting differences from translation are recognised in the reserves from currency translations.

The exchange rates (= EUR 1) applied for currency translation of the most significant currencies are shown in the table below:

Exchange rates	Closing rate			Average rate
	31 Dec. 2021	31 Dec. 2020	2021	2020
Pound sterling	0.84028	0.89903	0.85840	0.88935
Swiss Francs	1.03310	1.08020	1.07988	1.07075
US-Dollar	1.13260	1.22710	1.18156	1.14700

3. REPORTING AND VALUATION METHODS

3.1 INCOME STATEMENT

Revenue

Revenue is recognised when a contract with enforceable rights and obligations exists and control of goods has been transferred to the customer or the service has been rendered. Revenue is measured at the fair value of the consideration received or receivable. It is the amount receivable for goods and services provided in the course of ordinary operating activities. Revenue from services is recognised on a straight-line basis over the service period.

For services that are not provided by the Group, thus where the Group acts as agent, revenue is only recognised in the amount related to the brokerage service of the Group. Amounts received in the name and on account of third parties are not recognised as revenue.

Discounts, bonuses and VAT/sales or other taxes relating to the goods or services provided are deducted from revenue.

Vehicle sales are recognised when the vehicle is delivered and ownership is transferred, the amount of revenue and the costs still to be incurred can be determined reliably and an incoming benefit is probable. The Group does not recognise proceeds from the sale of used vehicles, as rental fleet vehicles are predominantly sold under buy-back agreements. To better reflect this fact, proceeds from the sale of used vehicles are not recognised. Instead, the selling

expenses carried under fleet expenses are reduced by the corresponding amounts. Any remaining balance is allocated to depreciation and amortisation expense.

Government grants

Government grants are recognised at fair value when there is reasonable assurance that the Group will comply with the conditions attached to the grant. They are recognised in profit or loss on a predefined basis over the periods in which the Group recognises the related costs which the grants are intended to compensate. Grants relating to profit or loss are offset against the corresponding expenses, as far as attributable.

Financial result

Interest income and expense presented in the financial result is recognised on an accrual basis taking into account the outstanding loan amount and the applicable interest rate. The effective interest method is applied for this. Income and expense arising from profit and loss transfer agreements are recognised at the end of the financial year, while dividend income is recognised on the date from which the shareholder is entitled to receive payment thereof.

Income tax expense

Income tax expense is the aggregate of current tax expense and deferred taxes.

Current and deferred taxes are generally recognised in the income statement, except where they relate to items recognised in other comprehensive income or directly in equity. In this case the current

116 — Sixt SE Annual Report 2021

CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

and deferred taxes are also recognised in other comprehensive income or equity.

Current tax expense is calculated on the basis of the taxable income for the year.

In accordance with the balance sheet liability method as defined by IAS 12 (Income taxes), deferred taxes are principally formed for all temporary differences arising from deviations in the valuation of assets and liabilities as against the corresponding tax basis. Deferred tax assets are also recognised for the carryforward of unused tax losses.

Earnings per share

Basic earnings per share are measured in accordance with IAS 33 (Earnings per share). Undiluted earnings per share are calculated by dividing the share in post-tax earnings of the parent company's shareholders by the weighted average number of shares outstanding during the financial year. Consolidated profit is to be allocated to the different classes of shares. If applicable, diluted earnings per share are reported separately.

3.2 ASSETS

Goodwill

Any goodwill generated from a business combination is recognised at cost less any necessary impairment and is carried separately in the consolidated balance sheet. For the purpose of testing impairment, goodwill is allocated to those cash-generating units (or groups) of the Group, of which it is expected that they can draw benefit from the synergies of the business combination.

Those cash-generating units, to which a portion of goodwill is allocated, must be tested for impairment at least annually. Additional the cash-generating units need to be tested for impairment in case of a triggering event. If the recoverable amount of a cash-generating unit is smaller than the carrying amount of the unit, the impairment loss must be allocated first to the carrying amount of goodwill allocated to the unit and then to the other assets of the unit pro rata on the basis of the carrying amount of each asset in the unit. The recoverable amount is the higher amount from the value in use and the fair value less costs to sell.

Any impairment of goodwill is recognised directly in the income statement. An impairment loss recognised for goodwill shall not be reversed in a subsequent period.

The annual impairment test is based on management's planning. The planning assumptions used to determine the recoverable amount, which is the value in use, are adapted annually to reflect current market conditions and the company's results of operations. The actual amounts can differ from these assumptions. The model used for the impairment test is based on the discounted cash flow method, with a multi-year plan and a growth factor taken as the basis in deriving a sustainable figure. The assumptions used for the model are based on external observations.

Intangible assets

Intangible assets include purchased and internally developed software, as well as any payments on account in respect of intangible assets.

Purchased intangible assets are capitalised at acquisition cost less accumulated amortisation and impairments, while internally generated intangible assets are only capitalised at production cost if the criteria set out in IAS 38 have been met. If the capitalisation criteria have not been met, the expenses are recognised in the income statement in the year in which they are incurred. Intangible assets are amortised on a straight-line basis over a useful life of two to twenty years. In accordance with IAS 36, intangible assets whose useful lives cannot be determined or are generally indefinite are tested for impairment on an annual basis and, where necessary, written down to their recoverable amount.

Property and equipment and investment property

Property and equipment are carried at cost less straight-line depreciation and recognised impairments. Investment property is valued according to the cost model at cost less straight-line depreciation and recognised impairment.

Depreciation is performed in a way that the acquisition costs of assets less their residual values are depreciated on a straight-line basis over their useful lives. The expected useful lives, residual values and depreciation methods are re-evaluated at the end of each reporting period and all necessary changes in estimates are applied prospectively. Depreciation is based on the following useful lives, which apply uniformly throughout the Group:

Useful lives
Buildings and fixtures in buildings	12 to 50 years
Operating and office equipment	2 to 21 years

Property and equipment are derecognised either on disposal or when no further economic benefit is to be expected from the

Sixt SE Annual Report 2021 — 117

continued use of the asset. The resulting gain or loss from the sale or retirement of property and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss.

Leases

Leases concluded by the Sixt Group as lessee are recognised as lease liabilities under the item financial liabilities and as corresponding right of use assets. For lessees there is no distinction made between operate or finance leases.

The lease liability is initially measured at the amount of the future lease payments, discounted with the interest rate implicit in the lease or, if not readily determinable, the lessee's incremental borrowing rate. Generally the Sixt Group uses the incremental borrowing rate for the respective currency.

The measurement of the lease liability includes fixed payments less any lease incentives receivable, variable payments that depend on an index or a rate, amounts expected to be paid under a residual value guarantee, the exercise price of a purchase option that the Group is reasonably certain to exercise, lease payments for extension periods, if the Group is reasonably certain to exercise the extension option, as well as agreed compensations for the termination of a lease, except if the Group is reasonably certain not to terminate the lease early.

Right of use assets are initially measured at the amount of the lease liability adjusted for any payments made at the beginning of the lease, initial direct costs and any lease incentives received.

The lease liability is subsequently measured at amortised cost according to the effective interest method. The right of use asset is depreciated on a straight-line basis over the useful live of the asset or the term of the lease.

The lease liability is remeasured, if the future lease payments change due to the adjustment of the contract, an index or a rate, if the assumption regarding the amount expected to be paid under a residual value guarantee changes, or if the Group changes its assumption regarding the exercise of a purchase, extension or termination option. When the lease liability is remeasured a corresponding adjustment is made to the right of use asset.

Lease liabilities are presented within the financial liabilities, the right of use assets dependent on the underlying asset are reported under the item property and equipment.

The Sixt Group applies the exemption to not recognise right of use assets and lease liabilities for short-term leases and leases for assets of low value. This concerns in particular lease agreements for rental vehicles as well as rental stations and other business premises with a contractual term of up to one year. The Sixt Group recognises the payments of these leases directly in profit or loss on a straight-line basis over the lease term.

The Group reviews the carrying amounts of property and equipment and intangible assets including right of use assets at each balance sheet date, to determine if there are any indications for an impairment of these assets. If any such indications are identified, the recoverable amount of the asset is estimated to determine the extent of a possible impairment expense.

Leases concluded by the Sixt Group as lessor are classified as finance leases, if under the lease agreement all opportunities and risks associated with ownership are essentially transferred to the lessee. All other leasing relations are classified as operate leases. As at 31 December 2021 the Group does not report any assets leased out as lessor.

Rental vehicles

Rental vehicles are measured at cost, including incidental costs, less straight-line depreciation to their residual values. The residual values are based on the buy-back value per vehicle type contractually agreed with the suppliers. If no buy-back values have been agreed, the vehicles must be sold by the Group on the open market. In this case the residual value is based on the expected fair value. In estimating the expected fair value the Group is exposed to the development of the used car market. The value of the vehicles is analysed regularly based on the company's own experience and market observations. Write-downs for impairment are recognised to the extent that indications for impairment exist.

Inventories

The item inventories contains vehicles for sale. These are measured at amortised cost, including incidental costs, and are regularly compared with the net realisable value. If that is lower, an impairment loss is recognised.

Raw materials, consumables and supplies are carried at the lower of cost, including incidental costs and discounts, or net realisable value.

Financial assets, other receivables and assets

Financial assets are composed of originated loans and receivables, equity instruments, purchased debt instruments, cash and cash

equivalents, and derivatives. Financial assets are recognised when the Group has a contractual right to receive cash or another financial asset from another party. Purchases and sales of financial assets are generally recognised at the settlement date. Financial assets are initially recognised at fair value plus transaction costs if applicable. Transaction costs incurred for the purchase of financial assets at fair value through profit or loss are recognised immediately in profit or loss. Subsequent measurement is based on the allocation of the financial assets to the categories according to IFRS 9.

The Group classifies financial assets in the following measurement categories: at fair value, with changes recognised either through profit or loss or through other comprehensive income and at amortised cost.

Financial assets that are held for collection of contractual cash flows and those cash flows represent solely payments of principal and interest are measured at amortised cost using the effective interest method. Trade receivables, financial receivables and loans reported in other assets, as well as cash and cash equivalents are assigned to this measurement category. Interest income from items in this category is calculated using the effective interest method unless the receivables are short-term and the effect of interest accumulation is immaterial.

Assets that are held for collection of contractual cash flows and for sale, and whose cash flows represent solely payments of principal and interest are measured at fair value through other comprehensive income. These are, in particular, debt instruments not held to maturity. Changes in the fair value are recognised in other comprehensive income. Changes in fair value are only recognised in profit or loss when the instrument is disposed of. Interest income from these financial assets is included in the financial result using the effective interest rate method. At present, the Group does not report any debt instruments that are not held to maturity.

Equity instruments in companies listed on the stock exchange, which are not held for trading are also measured at fair value through other comprehensive income. Changes in fair value of such equity instruments are recognised in other comprehensive income and are not recycled to profit or loss upon disposal.

Assets, that are not measured at amortised cost or at fair value through other comprehensive income, are measured at fair value through profit or loss. Equity instruments in companies whose shares are not traded on the stock exchange and derivatives reported in other financial assets are assigned to this category. The gain or loss resulting from the measurement of derivative financial instruments is immediately recognised in profit or loss, unless the derivative is designated and effective as hedging instrument in a hedging relationship (hedge accounting). In this case, the timing of the recognition in the income statement of the measurement result depends on the type of hedging relationship.

Financial assets, with the exception of financial assets at fair value through profit or loss and at fair value through other comprehensive income, are assessed at each reporting date on the basis of expected credit losses. The impairment method applied depends on whether there has been a significant increase in credit risks. For trade receivables and receivables from insurances, the Group applies the simplified approach, whereby an impairment allowance in the amount of expected credit losses over the lifetime of the receivables is recognised for all instruments irrespective of their credit quality.

Some categories of financial assets, such as trade receivables, are tested for impairment on a portfolio basis. The portfolio-based assessment is carried out by grouping together assets with similar risk characteristics, such as customer group, customer creditworthiness and transaction type to determine an impairment provision reflecting the expected probability of default.

When assessing the portfolio-based impairment, the Group uses in addition to management expectations the historical information on the timing of recoveries and defaults and makes necessary adjustments to reflect current and expected future economic conditions that may affect defaults.

In the case of financial assets measured at amortised cost, the impairment loss corresponds to the difference between the carrying amount of the asset and the net present value of expected future cash flows determined on the basis of the original effective interest rate of the asset.

An impairment of the affected financial assets is recognised in an impairment account (allowance account). Changes in the carrying amount of the impairment account are recognised in profit or loss.

When the Group considers that there are no realistic prospects of recovering the asset, the relevant amount is written-off. The Group also derecognises a financial asset if the contractual right to cash flows from the financial asset expires or the financial asset and practically all the opportunities and risks associated with the financial asset are transferred to a third party.

Non-current assets and disposal groups held for sale and discontinued operations

The Group classifies non-current assets and disposal groups as held for sale if their carrying amount will be recovered principally through a sale transaction rather than continuing use. This condition is considered as met only when the sale is highly probable and the non-current asset or disposal group is available for immediate sale in its present condition. In accordance with the valuation requirements of IFRS 5 (Non-current assets held for sale and discontinued operations) such non-current assets and disposal groups are measured at the lower of their carrying amount and fair value less cost to sell. Once classified as held for sale, non-current assets or non-current assets within a disposal group are no longer amortised or depreciated. An impairment is recognised if the fair value less cost to sell is less than the carrying amount. The impairment loss of the disposal group is allocated first to goodwill and then on a pro rata basis to the non-current assets.

Non-current assets classified as held for sale, as well as the assets and the corresponding liabilities of a disposal group are presented in the items assets held for sale, respectively liabilities directly associated with assets held for sale, separately from other assets and liabilities as current items. Those assets and liabilities are not offset.

A disposal group is classified as discontinued operation, if it is a component of an entity that has been disposed of, or is classified as held for sale, and represents a separate major line of business or region, is part of a single coordinated plan to dispose of a separate major line of business or region or is a subsidiary acquired only for the purpose of resale.

Income and expenses of discontinued operations, as well as gains or losses arising from the measurement to fair value and gains or losses resulting from disposal are presented separately in the item result from discontinued operations, net of taxes. The Group determines such items as discontinued operations at the earlier of disposal or when the criteria for classification as held for sale are met.

The cash flows resulting from discontinued operations are presented separately in the cash flow statement.

3.3 EQUITY AND LIABILITIES

Shared-based payments

Cash-settled share-based payment transactions are measured at fair value at the grant date and at each reporting date up to and including the settlement date. The fair value is recognised in the income statement as personnel expenses over the period until the vesting date and presented as liability under other provisions.

Equity-settled share-based payment transactions to employees are measured at the grant date fair value of the equity instruments granted. The fair value determined at the grant date of the equity-settled share-based payments is recognised as expense on a straight-line basis over the vesting period with corresponding increase of equity (capital reserves) and is based on the Group's expectations regarding the equity instruments expected to vest. The Group reviews at each balance sheet date its estimate regarding the quantity of equity instruments expected to vest.

The section entitled “Share-based payments” provides further information on the determination of the fair value of share-based payments.

Provisions for pensions and other post-employment benefits

Provisions for pensions and other post-employment benefits are measured annually by independent actuaries using the projected unit credit method. The measurement is based on actuarial valuations relying on financial and demographic assumptions. The assumptions are reviewed for appropriateness at each balance sheet date.

The amount recognised as provisions for pensions and other post-employment benefits in the consolidated balance sheet is the current deficit of the defined benefit plans of the Group.

Service costs are recognised in personnel expenses within the consolidated income statement, while net interest result is recognised as part of finance costs. Remeasurements of the defined benefit obligation, net of deferred taxes, are recognised in other equity. These amounts recognised in other comprehensive income are not recognised in the income statement in the future.

Provisions

Adequate provisions are recognised for potential obligations to third parties if these are attributable to a past event, if utilisation is more likely than not and provided a reliable estimate can be made of the probable amount of the obligation. Such liabilities are only accounted for as provisions if their amount is uncertain and payment to settle the obligation is probable. The measurements are made with the best estimate of the consideration required to settle the present obligation at the balance sheet date, taking into account the risks and uncertainties inherent in the obligation. Where a provision is measured on the basis of the estimated cash flows

for meeting the obligation, these cash flows are discounted if the impact on interest is significant.

Financial liabilities

Financial liabilities are measured on initial recognition at their fair value and subsequently according to the effective interest method at amortised cost less directly attributable transaction costs, where applicable. Lease liabilities to the lessor are initially recognised at the present value of the future lease payments and subsequently measured according to the effective interest method at amortised costs. Only the interest portion is recognised as expense within the financial result.

HEDGING RELATIONSHIPS

The Group designates individual financial instruments, including derivatives, as part of cash flow hedges where applicable. Hedging relationships are recognised in accordance with IFRS 9.

Eligibility and details of the hedge relationship between underlying and hedging transaction as well as the relevant risk management objectives and strategies are documented at the start of hedge accounting. In addition, both at the inception of the hedging relationship and over the course of the relationship, it is regularly documented whether the hedging instrument designated in the hedge relationship meets the requirements for hedge effectiveness.

The effective portion of the change in the fair value of derivatives, which are suitable for cash flow hedges and which have been designated as such, is recognised in other comprehensive income under the item changes in the fair value of derivative financial instruments in hedge relationship. The gain or loss from the ineffective portion is recognised immediately in the income statement under other operating income or other operating expenses. Amounts recognised in other comprehensive income are transferred to the income statement during the period in which the hedge underlying transaction is also carried through profit or loss and are offset against the corresponding hedge underlying transaction.

The section titled “Additional disclosures on financial instruments” provides details on the fair value of the derivatives used for hedging.

Financial accounting of the hedging relationship ends when the hedging instrument expires, is sold or terminated, or the instrument is no longer suitable for hedging. The full amount of gains or losses recognised in other comprehensive income at this point in time and accumulated in equity remains in equity and is only recognised in the income statement when the expected transaction is also recognised in the income statement. Where the forecasted transaction is no longer expected to occur, the cumulative gain or loss recognised in equity is directly transferred to the income statement.

ESTIMATION UNCERTAINTIES AND DISCRETIONARY DECISIONS

In preparing the Consolidated Financial Statements, it is often necessary to make estimates and assumptions that affect both the items reported in the consolidated balance sheet and the consolidated income statement, as well as in the disclosures contained in the Notes to the Consolidated Financial Statements. The amounts actually realised may differ from the reported amounts. Changes are recognised in the income statement on the date at which a better knowledge is gained. The estimates and assumptions made are outlined in the disclosures on the individual items.

Due to the coronavirus pandemic, particular challenges still arose with regard to estimates and assumptions in the financial year 2021. At the closing date the uncertainties with regard to the further development of the coronavirus pandemic and the related restrictions to travel and public life remain high. Impairment tests to review the recoverability of goodwill and assets in the scope of IAS 36 (Impairment of assets) were performed. The management's planning, the planning assumptions as well as the discount rates used were adapted to the changed market conditions. In addition, valuation allowances charged on receivables and other assets for expected credit losses were reviewed on an ongoing basis and parameters used to determine risk provisions, which are derived from management expectations, were adjusted to the current overall economic situation.

Further estimates and assumptions for areas of the Consolidated Financial Statements in which amounts are most significantly affected are unchanged as follows:

Property and equipment and intangible assets are measured on the basis of the estimated useful lives of the assets. The term of leases is evaluated based on the estimation if extension and termination options are exercised. Rental vehicles are measured on the basis of the estimated useful lives taking into account the expected residual value of the vehicles. Derivatives are measured on the basis of estimated market yield curves. The need for provisions is determined using the best estimate of the most probable settlement amount of the present obligation at the balance sheet date.

CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

4. EXPLANATIONS AND DISCLOSURES ON INDIVIDUAL ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS

4.1 CONSOLIDATED INCOME STATEMENT

4.1\Revenue is broken down as follows:

Revenue	Germany			Europe	North America			Total	Change
in EUR thousand	2021	2020	2021	2020	2021	2020	2021	2020	in %
Rental revenue	656,007	590,974	884,294	526,204	557,081	245,251	2,097,382	1,362,429	53.9
Other revenue from rental business	83,602	88,486	61,336	50,350	27,496	18,962	172,434	157,797	9.3
Other revenue	9,942	8,475	2,690	3,388	-	-	12,632	11,862	6.5
Group total	749,551	687,935	948,320	579,942	584,577	264,213	2,282,448	1,532,089	49.0

The main activity of the Group is vehicle rental including other related services and brokerage of transfer services. These activities are shown in the regional segments, Germany, Europe and North America. These areas form the basis of segment reporting.

Rental revenue from short-term rental of vehicles increased compared to the last year by 53.9 % to EUR 2,097,382 thousand (2020: EUR 1,362,429 thousand). Other revenue from rental business, for example damage compensations resulting from rental business and other revenues such as subsidies, licence and franchise fees and commission revenue increased by 9.3% to EUR 172,434 thousand (2020: EUR 157,797 thousand) and includes compensation payments from third parties totalling EUR 120,076 thousand (2020: EUR 114,835 thousand).

As in the previous year, rental fleet vehicles were sold predominantly under buy-back agreements concluded with manufacturers and dealers, and therefore only partially directly in the used car market. To better reflect this fact, proceeds from the sale of

used vehicles are not recognised. Instead, the selling expenses carried under fleet expenses are reduced by the corresponding amounts. Any remaining balance is allocated to the item depreciation and amortisation expense including impairments.

4.2 Other operating income in the amount of EUR 157,268 thousand (2020: EUR 181,775 thousand) includes income of EUR 58,238 thousand (2020: EUR 101,642 thousand) from currency translation. The item also includes income of EUR 42,231 thousand (2020: EUR 36,459 thousand) from forwarding costs to third parties, income of EUR 7,469 thousand (2020: EUR 8,263 thousand) from non-cash benefits, income of EUR 13,654 thousand (2020: EUR 927 thousand) from the reversal of impairments, income of EUR 6,189 thousand (2020: EUR 4,137 thousand) from the reversal of provisions, income of EUR 2,211 thousand (2020: EUR 1,510 thousand) from payments on previously derecognised receivables and income of EUR 11,397 thousand (2020: EUR 8,167 thousand) from capitalised costs.

4.3 Fleet expenses are broken down as follows:

Fleet expenses			Change
in EUR thousand	2021	2020	in %
Repairs, maintenance and reconditioning	230,431	193,075	19.3
Fuel	40,456	28,421	42.3
Insurance	110,829	86,111	28.7
Transportation	38,249	43,442	-12.0
Taxes and charges	22,429	25,014	-10.3
Other	64,102	53,232	20.4
Group total	506,496	429,295	18.0

122 — Sixt SE Annual Report 2021

CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The fleet expenses item comprises expenses for current rental operations. Selling expenses relating to the rental fleet are reduced by the corresponding amounts of sales revenue.

14.4\1 Personnel expenses increased from EUR 339,252 thousand the year before to EUR 405,286 thousand in the year under review. Due to the positive business development in the second and third quarter of 2021, the cost saving measures introduced in the previous year as a result of the coronavirus pandemic like the use of short-time working, were successively reversed until the third quarter. Personnel expenses include government grants in the amount of EUR 9,963 thousand (2020: EUR 16,469 thousand) for the use of short-time working during the coronavirus pandemic. Social contributions mainly include employer contributions to statutory social insurance schemes. The expense for defined contribution pension plans in the amount of EUR 16,145 thousand (2020: EUR 17,744 thousand) primarily results from statutory pension insurances. Expenses for defined benefit pension plans are included in the amount of EUR 1,284 thousand (2020: EUR 1,466 thousand). Personnel expenses also include further expenses for defined post-employment benefits in the amount of EUR 88 thousand (2020: EUR 287 thousand).

Personnel expenses in EUR thousand	2021	2020	Change in %
Wages and salaries	348,616	286,823	21.5
Social security contributions	56,670	52,429	8.1
Group total	405,286	339,252	19.5

The average number of employees during the year was:

Employees in the Group	2021	2020
Female employees	2,843	3,135
Male employees	3,556	3,786
Group total	6,399	6,921

14.5\1 Expenses for depreciation and amortisation including impairments in the financial year are explained in more detail below:

Depreciation and amortisation expense including impairments in EUR thousand	2021	2020	Change in %
Rental vehicles	238,410	294,418	-19.0
Property and equipment and investment property	126,201	149,069	-15.3
Intangible assets	5,428	14,597	-62.8
Group total	370,039	458,083	-19.2

The depreciation expense for rental vehicles decreased to EUR 238,410 thousand (2020: EUR 294,418 thousand), which results mainly from the favourable development of residual values. Impairment losses of EUR 1,753 thousand (2020: EUR 9,395 thousand) were charged on rental vehicles of EUR 651 million (2020: EUR 1,699 million). Impairment losses are based on assumed future prices on the used car markets respectively are resulting from impairment assessments.

From the assessment of carrying amounts of assets in the financial year 2021 no impairment losses were recognised for goodwill (2020: EUR 8.2 million) or for property and equipment and right of use assets (2020: EUR 20.8 million).

Sixt SE Annual Report 2021 — 123

CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

14.6\ The following table contains a breakdown of other operating expenses:

Other operating expenses			Change
in EUR thousand	2021	2020	in %
Leasing expenses	54,008	60,662	-11.0
Commissions	198,683	79,433	150.1
Expenses for buildings	50,654	38,671	31.0
Other selling and marketing expenses	70,215	48,875	43.7
Expenses from write-downs/impairments of receivables	98,928	63,766	55.1
Audit, legal, advisory costs, and investor relations expenses	27,035	23,853	13.3
Other personnel services	41,439	38,534	7.5
Expenses for IT and communication services	19,364	17,125	13.1
Currency translation/consolidation	58,837	112,390	-47.6
Miscellaneous expenses	59,554	52,629	13.2
Group total	678,717	535,938	26.6

The Consolidated Financial Statements of Sixt SE recognised as operating expense in the amount of EUR 380 thousand (2020: EUR 483 thousand) fees for the auditors of the Consolidated Financial Statements. The fees break down into audit costs (EUR 309 thousand, 2020: EUR 321 thousand), other assurance services (EUR 67 thousand, 2020: EUR 100 thousand) in particular for the EMIR audit and comfort letter, tax consultancy services (EUR 4 thousand, 2020: EUR 55 thousand), that were provided for the parent or subsidiary companies. The fees of the auditors of the Consolidated Financial Statements included in the previous year other services in amount of EUR 6 thousand.

14.7\ The financial result came to EUR -37,009 thousand in total (2020: EUR -32,841 thousand). Main reason was the higher net interest expense. The following table contains a breakdown of the financial result:

Financial result			Change
in EUR thousand	2021	2020	in %
Other interest and similar income	766	2,730	-71.9
Interest and similar expenses	-37,849	-37,250	1.6
Thereof from leases	-6,338	-7,230	-12.3
Net interest expense	-37,083	-34,520	7.4
Income from financial assets	-	1,514	-100.0
Expenses for financial assets	-3	-3	9.9
Result from fair value measurement of financial assets	78	169	-53.9
Other financial result	75	1,680	-95.6
Group total	-37,009	-32,841	12.7

Sixt SE Annual Report 2021

CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

14.8 Income tax expense comprises the following:

Income tax expense			Change
in EUR thousand	2021	2020	in %
Current income tax for the reporting period	106,486	22,386	375.7
Deferred taxes	22,532	-5,123	-539.8
Group total	129,019	17,262	647.4

Current income tax in the amount of EUR 106,486 thousand in the financial year 2021 (2020: EUR 22,386 thousand) comprises tax expense for previous years in the amount of EUR 11,227 thousand (2020: tax income of EUR 8,672 thousand).

In accordance with the balance sheet liability method as defined by IAS 12 (Income taxes), deferred taxes are principally formed for all temporary differences arising from the deviations in the valuation of assets and liabilities in the IFRS consolidated balance sheet as against the tax balance sheet and the consolidation measures recognised in the income statement. In addition, deferred tax assets are recognised for the future benefits expected to arise from accepted tax loss carryforwards.

Deferred taxes are measured at the tax rates that are expected to apply for the period when the temporary differences reverse or the tax loss carryforwards are used. Until changes to tax laws are ratified, deferred taxes are measured at current tax rates. A corporation tax rate of 15% (2020: 15%) was used to calculate deferred taxes at the German companies as at 31 December 2021. Furthermore, a solidarity surcharge of 5.5% (2020: 5.5%) on the

corporation tax was also included and a trade tax rate between 9.1% and 16.3% (2020: between 9.1% and 17.2%) depending on the municipality's tax assessment rate was applied. Thus, an aggregated tax rate between 24.9% and 32.1% (2020: 24.9% and 33.0%) was used to calculate deferred taxes at the German companies. The country-specific tax rates were used in each case to calculate deferred taxes at the foreign companies.

Deferred taxes are generally recognised in the income statement, except where they relate to items recognised directly in equity as well as if applicable deferred taxes on transition effects to new IFRS standards.

The reconciliation of taxes explains the relationship between the expected and the effective tax expense reported. The expected tax expense results from the application of an income tax rate of 24.9% (2020: 24.9%) to consolidated profit for the period (before taxes) in accordance with IFRS. The income tax rate is made up of corporation tax at 15% (2020: 15%), a solidarity surcharge of 5.5% (2020: 5.5%) as well as trade tax at 9.1% (2020: 9.1%).

Reconciliation of taxes
in EUR thousand	2021	2020
Consolidated profit before taxes (from continuing operations) in accordance with IFRS	442,169	-81,546
Expected income tax expense	110,233	-20,329
Effect of different tax rates outside Germany	-1,448	1,591
Effect of different trade tax rates	8,710	1,972
Effect from tax rate changes	351	-976
Changes in permanent differences	-4,286	8,249
Changes in impairments	-852	19,280
Non-deductible operating expenses	6,651	14,881
Tax-exempt income	-2,310	-2,331
Current and deferred income taxes from other periods	11,158	-5,996
Other effects	812	921
Reported tax expense	129,019	17,262

Sixt SE Annual Report 2021 — 125

CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

At the balance sheet date deferred taxes without impact on profit or loss amounted to EUR -207 thousand (2020: EUR -81 thousand). The change in deferred taxes without impact on profit or loss against the previous year showed EUR 115 thousand (2020: EUR 146 thousand) or in consideration of currency translation effects, EUR 126 thousand (2020: EUR 146 thousand). Deferred taxes through the income statement are explained in more detail below:

Deferred taxes
in EUR thousand	2021	2020
From temporary differences	8,696	-34,449
From tax loss carryforwards	13,836	29,326
Group total	22,532	-5,123

As in the previous year no deferred tax assets have been recognised in the financial year 2021 following the acquisition of subsidiaries. The effect of exchange rate differences on deferred taxes amounted to EUR -1,691 thousand in the financial year (2020: EUR 2,031 thousand). The following overview outlines the sources of the deferred tax assets and liabilities:

Deferred taxes in EUR thousand	Deferred tax assets		Deferred tax liabilities
	31 Dec. 2021	31 Dec. 2020	31 Dec. 2021	31 Dec. 2020
Property and equipment	1,788	1,803	89,982	59,087
Fleet	3,447	9,683	21,450	6,930
Receivables	19,645	8,552	2,503	2,205
Other assets	6,933	3,737	6,608	4,444
Financial liabilities	97,017	65,712	-	-
Other liabilities	2,556	1,161	12,914	5,967
Provisions	18,580	11,184	430	-
Tax loss carryforwards	1,499	15,335	-	-
	151,465	117,167	133,887	78,633
Offsetting	-119,776	-73,555	-119,776	-73,555
Group total	31,689	43,612	14,111	5,078

Deferred tax assets and liabilities are offset where there is a legally enforceable right to set off current tax assets against current tax liabilities and where they relate to income taxes of the same tax subject levied by the same tax authority.

The tax losses carried forward of EUR 10,771 thousand (2020: EUR 39,216 thousand), for which no deferred tax assets were recognised, will not expire in the following years (2020: EUR 13,416 thousand). The loss carryforwards for which deferred tax assets were recognised are expected to be used during a four-year planning period.

For deductible temporary differences in the amount of EUR 901 thousand (2020: EUR 40,002 thousand) no deferred taxes were recognised in the financial year 2021.

For temporary differences in relation to shares in subsidiaries of the Group in the amount of EUR 40,437 thousand (2020: EUR 32,035 thousand) deferred tax liabilities were not recognised for reported periods.

4.9 Result from discontinued operations, net of taxes

On 15 July 2020 SIXT SE announced the successful completion of the sale of its entire stake in Sixt Leasing SE. The selling price, excluding dividend paid, amounted to EUR 155.6 million or EUR 18.00 for each share sold.

The result from discontinued operations in the amount of EUR 100.8 million reported in the previous year contained the current result after income tax of discontinued operations in amount of EUR 60.6 million and the profit on sale after income tax in amount of EUR 40.1 million.

126 — Sixt SE Annual Report 2021

CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

14.10\ The minority interests contained in the consolidated profit amount to a total of EUR 3 thousand (2020: EUR 35,213 thousand). The decrease is mainly due to the sale of the leasing business in the previous year. As at the balance sheet date, there are no longer any other shareholders in Group companies.

14.11\ Earnings per share are as follows:

Earnings per share - basic		2021	2020
Consolidated profit/loss for the period after minority interests	in EUR thousand	313,148	-33,246
Profit attributable to ordinary shares	in EUR thousand	202,357	-22,043
Profit attributable to preference shares	in EUR thousand	110,791	-11,203
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	6.66	-0.73
From continuing operations	in EUR	6.66	-2.12
From discontinued operations	in EUR	-	1.39
Earnings per preference share	in EUR	6.68	-0.68
From continuing operations	in EUR	6.68	-2.09
From discontinued operations	in EUR	-	1.41

The profit attributable to preference shares includes the additional dividend of EUR 0.02 or the minimum dividend of EUR 0.05 per preference share payable in accordance with the Articles of Association for preference shares carrying dividend rights in the financial year (as at 31 December). 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 potential dilutive effect of stock options issued as part of the Matching Stock Programme MSP 2012 is insignificant, so that no adjustment is made. The diluted earnings per share therefore correspond for both categories of shares in the amount to the basic earnings per share.

Sixt SE Annual Report 2021 — 127

CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

4.2 CONSOLIDATED BALANCE SHEET

Assets

14.121 to 14.151 The changes in the Group's non-current assets (excluding financial assets) are shown below. The consolidated statement of changes in non-current assets of the previous year includes the changes in non-current assets of the continuing operations, as well as the discontinued operations up to the date of the decision on the sale and the resulting reclassification as held for sale. The discontinued Leasing Business Unit was sold on 15 July 2020 and subsequently deconsolidated.

Consolidated Statement of Changes in Non-current Assets
in EUR thousand	Acquisition and production costs
	1 Jan. 2021	Foreign exchange differences	Additions	Disposals	Transfers	Reclassification as held for sale	31 Dec. 2021
Goodwill	25,996	55	-	-	-	-	26,050
Purchased software	43,972	19	1,561	7	-	-	45,545
Internally developed software	2,529	-	1,041	-	5,707	-	9,277
Payments on account of software	10,155	-	10,689	-	-5,707	-	15,137
Other intangible assets	9,056	615	90	-	-	-	9,760
Intangible assets	65,712	634	13,381	7	-	-	79,720
Land and buildings	668,542	23,441	96,389	8,936	-11,713	-	767,723
Operating and office equipment	172,360	3,217	30,550	10,945	3,500	-	198,683
Payments on account of property and equipment	4,207	130	2,863	1	-3,500	-	3,699
Property and equipment	845,110	26,788	129,802	19,881	-11,713	-	970,106
Investment property	-	-	-	-	11,713	-	11,713
Total	936,818	27,476	143,183	19,889	-	-	1,087,589
Consolidated Statement of Changes in Non-current Assets
---	---	---	---	---	---	---	---
in EUR thousand	Acquisition and production costs
	1 Jan. 2020	Foreign exchange differences	Additions	Disposals	Transfers	Reclassification as held for sale	31 Dec. 2020
Goodwill	28,957	-645	-	-	-	-2,316	25,996
Purchased software	54,833	-19	193	8,503	969	-3,499	43,972
Internally developed software	8,121	-	-	-	-	-5,592	2,529
Payments on account of software	14,002	-	8,735	1,939	-969	-9,675	10,155
Other intangible assets	10,489	-710	-	723	-	-	9,056
Intangible assets	87,445	-729	8,928	11,165	-	-18,766	65,712
Land and buildings	596,810	-20,464	100,752	475	-	-8,080	668,542
Operating and office equipment	172,091	-2,914	12,920	9,645	3,363	-3,456	172,360
Payments on account of property and equipment	4,999	-257	2,890	8	-3,363	-54	4,207
Property and equipment	773,900	-23,634	116,561	10,128	-	-11,590	845,110
Lease assets	1,344,602	798	39,607	40,747	-	-1,344,259	-
Total	2,234,904	-24,211	165,096	62,040	-	-1,376,931	936,818

128 — Sixt SE Annual Report 2021

CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

	Depreciation/Amortisation including Impairments					Carrying amounts
	1 Jan. 2021	Foreign exchange differences	Depreciation/Amortisation in the financial year	Disposals	Transfers	31 Dec. 2021	31 Dec. 2020
	7,554	55	-	-	-	7,608	18,442
	37,569	17	3,332	7	-	40,911	4,634
	1,086	-	1,613	-	-	2,698	6,579
	-	-	-	-	-	-	15,137
	6,978	485	484	-	-	7,947	1,814
	45,633	502	5,428	7	-	51,555	28,164
	216,687	7,306	101,131	3,813	-4,811	316,500	451,223
	84,464	1,333	24,947	7,988	-	102,755	95,927
	-	-	-	-	-	-	3,699
	301,153	8,638	126,078	11,802	-4,811	419,257	550,849
	-	-	123	-	4,811	4,934	6,779
	354,339	9,194	131,629	11,808	-	483,355	604,234
	Depreciation/Amortisation including Impairments					Carrying amounts
---	---	---	---	---	---	---	---
	1 Jan. 2020	Foreign exchange differences	Depreciation/Amortisation in the financial year	Disposals	Reclassification as held for sale	31 Dec. 2020	31 Dec. 2020
	46	-655	8,163	-	-	7,554	18,442
	44,523	-15	5,004	8,484	-3,460	37,569	6,403
	3,043	-	590	-	-2,546	1,086	1,443
	-	-	-	-	-	-	10,155
	7,324	-540	917	723	-	6,978	2,078
	54,889	-556	6,512	9,207	-6,006	45,633	20,080
	96,896	-4,321	125,480	87	-1,281	216,687	451,854
	70,659	-1,034	23,719	6,998	-1,882	84,464	87,896
	-	-	-	-	-	-	4,207
	167,555	-5,355	149,200	7,085	-3,163	301,153	543,957
	224,932	231	15,647	17,197	-223,613	-	-
	447,423	-6,335	179,523	33,489	-232,782	354,339	582,478

Sixt SE Annual Report 2021 — 129

CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

V4.12\ The goodwill of EUR 18,442 thousand (2020: EUR 18,442 thousand) results from the consolidation of the companies belonging to United Kenning Rental Group Ltd., Langley/Great Britain, acquired in 2000.

The annual impairment test of goodwill was carried out on the basis of the value in use, which as in the previous years is determined by the discounted future cash flows based on a multi-year plan and a growth factor of 1% taken as the basis in deriving a sustainable figure. The revenue and earnings planning is based on the assumptions of future business development, with due consideration of the continuously increased uncertainty resulting from the coronavirus pandemic. The discount rates (before taxes and growth factor) used are between 9.2% and 9.9% (2020: between 7.2% and 7.5%) and reflect the current market situation.

While the first months of the financial year were strongly influenced by the effects of the coronavirus pandemic, the business development of the Sixt Group recovered during the course of the year, therefore there were no indications that required an impairment test during the year.

As at 31 December 2021, as in the previous year, impairment tests for goodwill were performed based on the updated planning. The impairment test confirmed the value of the goodwill.

In addition to the impairment test, sensitivity analyses were conducted. A shift in the discount rates of +50 / -50 basis points would change the recoverable amount of the cash-generating unit by EUR -29.6 million / EUR +34.4 million. A change in the growth factor of +50 / -50 basis points would change the recoverable amount of the cash-generating unit by EUR +25.0 million / EUR -21.5 million. The decrease of the growth factor to 0.5% or the increase of the discount rate by 50 basis points would result in the goodwill to be fully impaired and require a further impairment loss of EUR 1.7 million and EUR 9.7 million respectively.

V4.13\ Intangible assets include purchased software amounting to EUR 4,634 thousand (2020: EUR 6,403 thousand) and internally developed software amounting to EUR 6,579 thousand (2020: EUR 1,443 thousand). The item also includes payments on account in respect of software and software in development amounting to EUR 15,137 thousand (2020: EUR 10,155 thousand) and other intangible assets amounting to EUR 1,814 thousand (2020: EUR 2,078 thousand).

V4.14\ The item property and equipment includes own property and equipment in the amount of EUR 193,291 thousand (2020: EUR 198,382 thousand) as well as right of use assets in the amount of EUR 357,558 thousand (2020: EUR 345,575 thousand).

Property and equipment owned by the Group includes land and buildings for rental stations/service points and administrative buildings in Germany and abroad in the amount of EUR 108,721 thousand (2020: EUR 108,212 thousand). A property, which is no longer used by the Group itself, was reclassified to the position investment property in the year under review. Furthermore, operating and office equipment (mainly IT systems, fixtures and fittings and office equipment) are included in the amount of EUR 80,871 thousand (2020: EUR 85,962 thousand). The item also includes payments on account made for property and equipment in the amount of EUR 3,699 thousand (2020: EUR 4,207 thousand). Land charges are registered against properties for real estate financing in the amount of EUR 65,826 thousand (2020: EUR 68,777 thousand).

Right of use assets for assets leased by the Sixt Group as lessee are included in the item property and equipment in the amount of EUR 357,558 thousand (2020: EUR 345,575 thousand). The changes in the right of use assets are presented below:

Sixt SE Annual Report 2021

CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

| Right of use assets
in EUR thousand | Buildings and rental stations | Operating and office equipment | Total property and equipment | Lease assets |
| --- | --- | --- | --- | --- |
| 1 Jan. 2021 | 343,642 | 1,934 | 345,575 | - |
| Additions | 87,928 | 20,232 | 108,161 | - |
| Depreciation including impairments in the financial year | -99,343 | -6,755 | -106,098 | - |
| Other incl. foreign exchange differences | 10,275 | -355 | 9,920 | - |
| 31 Dec. 2021 | 342,502 | 15,056 | 357,558 | - |
| 1 Jan. 2020 | 389,144 | 3,166 | 392,310 | 12,622 |
| Additions | 100,648 | 2,033 | 102,681 | - |
| Depreciation including impairments in the financial year | -123,652 | -3,198 | -126,851 | - |
| Reclassification as held for sale | -6,799 | - | -6,799 | -12,622 |
| Other incl. foreign exchange differences | -15,699 | -66 | -15,766 | - |
| 31 Dec. 2020 | 343,642 | 1,934 | 345,575 | - |

The Sixt Group rents or leases primarily rental stations and parking spaces, office and advertising spaces, as well as rental fleet vehicles, as part of its business activities.

Rental agreements for buildings and rental stations have lease terms between one and more than twenty years. The rental conditions are negotiated individually and include a wide range of various contract terms. Some of the lease contracts contain extension options, which are taken into consideration for the calculations of the right of use assets and lease liabilities, if the Sixt Group plans to exercise them. At various locations, e.g. airports, the rental agreements concluded by the Sixt Group apart from fixed payments also contain payments that are usually linked to sales figures. Such variable lease payments are expensed by the Group in profit or loss in the period in which those payments occur and are not included in the calculation of the lease liability. In financial year 2021 the share of variable lease expenses to total expenses for leases of buildings and rental stations increased to 42% (2020: 17%) after the revenue recovered from the previous year's decline due to the coronavirus pandemic.

As a result of the coronavirus pandemic and the relating stay-at-home orders and mobility restrictions, especially at the beginning of 2021 as in the previous year, a lot of rental stations could only be used to a limited extent. For some of the affected stations Sixt was able to reach agreements with the lessor to reduce rent payments or to defer them to a later date. For the respective changes in rent payments, as far as the conditions are met, the Sixt Group applied the exemption to not assess whether the change is a lease modification, but to account for as variable lease payments.

Leases for operating and office equipment of the Group relate mainly to rental agreements for advertising spaces and rental vehicles financed under leasing agreements. The increase compared to the previous year is mainly due to the higher number of leased vehicles financed by lease contracts. The contracts have terms between one and three years.

Certain lease contracts concluded by the Sixt Group as lessee have a lease term of less than one year. For these lease agreements, the Group applies the exemptions not to recognise the right of use assets or the corresponding lease liabilities. In addition to leases for buildings and rental stations, these are predominantly leases for rental vehicles, which usually have a lease term of less than one year.

Expenses incurred in connection with leases that have not been capitalised, are presented within other operating expenses. The expenses are broken down as follows:

| Expenses recognised in profit or loss relating to leases
in EUR thousand | 2021 | 2020 |
| --- | --- | --- |
| Expenses relating to short-term leases | 69,706 | 79,949 |
| Expenses relating to leases of low-value assets | 321 | 447 |
| Expenses from variable lease payments | 81,320 | 23,470 |
| Rent concessions (reduction of expenses) | 9,648 | 14,076 |

In the financial year 2021, payments of EUR 98.0 million (2020: EUR 102.7 million) have been recorded for capitalised leases.

Sixt SE Annual Report 2021 — 131

The total cash out relating to leases in the year under review amounted to EUR 249.3 million (2020: EUR 206.6 million).

Information on the lease liabilities corresponding to the right of use assets is presented in text item 4.27 and in the section titled “Additional disclosures on financial instruments”.

In the financial year no impairment (2020: EUR 20.8 million) was recorded on property and equipment and on right of use assets.

14.15 The investment property item in the amount of EUR 6,779 thousand (2020: EUR - thousand) includes properties that are held to generate rental income. One property is no longer used by the Group itself, therefore was reclassified to this position.

Investment properties are measured at amortised cost and depreciated over a useful live of 50 years. The fair value of the investment property as at the reporting date amounted to EUR 20,565 thousand (2020: EUR - thousand). The fair value was calculated using the income capitalisation approach. The income capitalisation approach uses currently known and estimated future rental income and a discount rate of 3.0% p.a. or 2.0% p.a. (perpetual annuity). The fair value reflects the indexation of future expected instalments. The investment property is not valued by an external appraisers. No impairment was required in the financial year as the fair value was above the amortised cost. Net rental income for the period is the balance of rental income of EUR 956 thousand (2020: EUR - thousand) and expenses of EUR 89 thousand (2020: EUR - thousand).

14.16 The carrying amount of the unconsolidated affiliates and investments presented under financial assets amounts to EUR 2,911 thousand (2020: EUR 9,934 thousand). The change to 2020 results mainly from fair value changes through other comprehensive income for the shares in an investment listed on the stock exchange.

14.17 The rental vehicles item increased from EUR 2,204.6 million to EUR 2,846.8 million as a result of the recovery of the business performance and due to the adaption of the vehicle fleet to the increased demand. As at 31 December 2021 rental vehicles with a planned remaining useful life of more than one year amounted to EUR 423.7 million.

The acquisition costs for new additions to the rental vehicles in the financial year amounted to EUR 3,770 million (2020: EUR 3,930 million). For the rental vehicles reported at the end of the year under review, they amounted to EUR 3,082 million (2020: EUR 2,361 million).

Rental vehicles are largely covered by buy-back agreements with dealers and manufacturers, from which calculated residual values at the respective contract end of EUR 2,020 million (2020: EUR 1,978 million) are expected as at the reporting date.

As in the previous years, rental vehicles were financed also via lease agreements, which were concluded with manufacturers/manufacturer financing companies.

14.18 Inventories consist mainly of rental vehicles available for sale, purchased vehicles intended for resale, as well as fuel, raw materials, consumables and supplies. The decrease of inventories to a total of EUR 27,056 thousand (2020: EUR 81,330 thousand) results mainly from the lower number of vehicles available for sale as at the reporting date.

14.19 Trade receivables of EUR 514,778 thousand (2020: EUR 530,043 thousand) result almost exclusively from services invoiced in the course of rental business and from used vehicle deliveries of the rental fleet. Valuation allowances were recognised for expected credit losses.

14.20 Other receivables and assets can be broken down as follows:

CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Other receivables and assets
in EUR thousand	31 Dec. 2021	31 Dec. 2020
Financial other receivables and assets
Receivables from affiliated companies and from other investees	95	117
Deposits	50,024	-
Miscellaneous assets	85,237	77,889
Non-financial other receivables and assets
Other recoverable taxes	10,214	34,851
Insurance claims	16,980	23,475
Deferred expense	20,955	12,785
Delivery claims for vehicles of the rental fleet	10,070	53,966
Group total	193,574	203,084
Thereof current	185,960	198,368
Thereof non-current	7,614	4,716

Deposits are short-term cash investments with a contractual maturity of more than three months and up to one year.

Miscellaneous assets also include deposits for leases and advances amounting to EUR 6,551 thousand (2020: EUR 4,716 thousand), in each case maturing in one to five years.

14.21\ Cash and bank balances of EUR 265,835 thousand (2020: EUR 753,322 thousand) include cash and short-term deposits at banks with terms of up to three months. The item corresponds to the cash and cash equivalents item in the consolidated cash flow statement.

Equity and liabilities

The Sixt Group's equity increased year-on-year to a total of EUR 1,746.2 million (2020: EUR 1,394.7 million). The subscribed capital of Sixt SE contained in this total amounted unchanged to EUR 120.2 million.

14.22\ Subscribed capital of Sixt SE

Composition of the share capital	No-par value shares	Nominal value in EUR	No-par value shares	Nominal value in EUR
		31 Dec. 2021		31 Dec. 2020
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

The ordinary shares are bearer shares with the exception of two registered shares, while the preference shares are exclusively bearer shares. Both categories of shares are no-par value shares. The notional interest in the share capital is EUR 2.56 per share. The preference shares entitle the holders to receive a dividend EUR 0.02 per share higher than that on the ordinary shares and a minimum dividend of EUR 0.05 per share from net retained profit for the year. The share capital is fully paid up.

Treasury shares

By resolution of the Annual General Meeting of 24 June 2020 the Management 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 can be exercised wholly or partially, on

Sixt SE Annual Report 2021 — 133

one or more occasions for any purpose permitted by law. Acquisitions for the purpose of trading in treasury shares are excluded.

Within the framework of the share performance programs for selected employees and executives, the company has concluded a share price hedging transaction in the form of a total return equity swap with a bank as counterparty with effect from 5 May 2021. This hedging transaction is settled only in cash. For legal reasons, the acquisition of the underlying shares was treated as an acquisition of shares by a third party. As underlying shares, a total of 25,193 ordinary shares of the company were acquired by the bank on the stock exchange in the financial year 2021.

The authorisation to acquire treasury shares has not yet been fully exercised as at the reporting date. As in the previous year, Sixt SE does not hold any treasury shares as of 31 December 2021.

Authorised Capital

By resolution of the Annual General Meeting of 24 June 2020 the Management Board is authorised to increase the share capital on one or more occasions in the period up to and including 23 June 2025, with the consent of the Supervisory Board, by up to a maximum of EUR 32,640,000 by issuing new no‐par value bearer shares against cash and/or non‐cash contributions (Authorised Capital 2020). The authorisation also includes the power to issue new non‐voting preference shares up to the legally permitted limit. For the distribution of profits and/or company assets these non‐voting preference shares are ranked equal to the non‐voting preference shares previously issued.

The shareholders of Sixt SE are accorded in principle the statutory subscription right. However the Management Board is authorised, with the consent of the Supervisory Board, to exclude the subscription right under certain conditions, which follow entirely from the resolution taken by the Annual General Meeting on 24 June 2020.

The Management Board is authorised, with the consent of the Supervisory Board, to stipulate the further details of the pre‐emptive rights and the terms and conditions of the share issue. The Management Board may resolve, with the consent of the Supervisory Board, that the new shares shall also carry dividend rights from the beginning of the financial year preceding their issue if the Annual General Meeting has not adopted a resolution on the appropriation of the profit for the financial year in question at the time the new shares are issued.

Conditional Capital

By resolution of the Annual General Meeting of 24 June 2020 the Management Board is authorised to issue, on one or more occasions in the period up to and including 23 June 2025, with the consent of the Supervisory Board, convertible and/or bonds with warrants 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 and to grant conversion or option rights to holders and/or creditors of convertible and/or bonds with warrants 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. Taking due account of statutory requirements, the respective conversion or option rights can provide for the subscription of ordinary bearer shares and/or preference bearer shares without voting right. The convertible and/or bonds with warrants can also be issued by a German or foreign company in which Sixt SE is directly or indirectly invested with a majority of votes and capital. In this case, the Management Board is authorised on behalf of the issuing company to take on the guarantee for repayment of the convertible and/or bonds with warrants and the payment of interest due thereon and to grant the bearers and/or creditors of such convertible and/or bonds with warrants conversion or option rights on shares of Sixt SE. Convertible and/or bonds with warrants can be issued against cash and/or non‐cash contributions. The shareholders of Sixt SE are accorded in principle the statutory subscription right. However, with the consent of the Supervisory Board, the Management Board is authorised to exclude the subscription right under certain conditions, which follow fully from the resolution taken by the Annual General Meeting on 24 June 2020.

In this context the company's share capital has been conditionally increased based on 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, which were issued until and including 23 June 2025 on the basis of the aforelisted resolution taken by the Annual General Meeting on 24 June 2020, by the company or a German or foreign subsidiary, in which the company holds directly or indirectly a majority of voting rights and capital. The conditional capital increase is only to be effected insofar as the conversion or option rights from the aforelisted convertible and/or bonds with warrants are actually exercised or the conversion obligations from such bonds are fulfilled and no other form of settlement is being used. The new shares will be issued at the option and/or conversion price to be determined in accordance with the authorisation of the Annual General Meeting of 24 June 2020. The new shares are entitled to take part in the

CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

company's profit as of the beginning of the fiscal year in which the conversion and/or option rights were exercised or in which the conversion obligations were fulfilled. Instead the new shares are entitled to take part in the company's profit as of the beginning of the fiscal year prior to the year of their issue, when at the time of issue of the new shares the resolution of the Annual General Meeting for the appropriation of earnings for this year has not been made. The Management Board is authorised to determine further details for implementing the conditional capital increase.

Profit participation bonds and rights

By resolution of the Annual General Meeting of 16 June 2021 the Management Board is authorised to issue, on one or more occasions in the period up to and including 15 June 2026, with the consent of the Supervisory Board, 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 rights issued under this authorisation may not provide for conversion or subscription rights to shares of the company. The issue can also be effected by a company in which Sixt SE is directly or indirectly invested with a majority of votes and capital. In this case, the Management Board is authorised to assume for the issuing company the guarantee on behalf of Sixt SE that the ensuing liabilities will be met. The shareholders of Sixt SE are accorded in principle the statutory subscription right. However, with the consent of the Supervisory Board, the Management Board is authorised to exclude the subscription right under certain conditions, which follow fully from the resolution taken by the Annual General Meeting on 16 June 2021.

14.23\ Capital reserves

Capital reserves
in EUR thousand	2021	2020
Balance as at 1 Jan.	197,280	240,659
Increase due to the employee participation programme	809	1,073
Disposal from the exercise under the employee participation programme	-	-5,866
Changes in the scope of consolidation	-	-38,587
Transfer to capital reserves	2,449	-
Balance as at 31 Dec.	200,538	197,280

The change in the capital reserves to EUR 200,538 thousand (2020: EUR 197,280 thousand) results mainly from allocation to the Matching Stock Programme MSP 2012 and transfers to the

capital reserves. Changes in the scope of consolidation in the previous year related mainly to the sale of Sixt Leasing SE.

14.24\ Retained earnings

Retained earnings
in EUR thousand	2021	2020
Balance as at 1 Jan.	212,439	208,597
Changes in the scope of consolidation	-248	-2,247
Purchase of minority interests	-120	-
Transfer to retained earnings	13,562	-
Other changes	-	6,088
Balance as at 31 Dec.	225,633	212,439

Sixt SE Annual Report 2021 — 135

CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

14.24\ Currency translation reserve

Currency translation reserve
in EUR thousand	2021	2020
Balance as at 1 Jan.	-23,808	10,140
Differences arising from the translation of the financial statements of foreign subsidiaries	44,677	-31,611
Amounts reclassified due to recognition in the income statement	-	-2,336
Balance as at 31 Dec.	20,869	-23,808

14.24\ Other equity

Other equity
in EUR thousand	2021	2020
Balance as at 1 Jan.	888,622	879,882
Consolidated profit attributable to shareholders of Sixt SE	313,148	-33,246
Dividend payment	-829	-829
Other comprehensive income	-6,208	8,071
Transfer to retained earnings	-13,562	-
Transfer to capital reserves	-2,449	-
Changes in the scope of consolidation	248	40,834
Other changes	-	-6,089
Balance as at 31 Dec.	1,178,971	888,622

Changes in the scope of consolidation in the previous year related mainly to the sale of Sixt Leasing SE.

The following dividends were distributed in the course of the preceding year.

Dividends
in EUR thousand	2021	2020
Amounts recognised as distribution to shareholders in the financial year	829	829
No payment of a dividend for financial year 2020 (for 2019 no payment) for each ordinary share	-	-
Dividend for financial year 2020 of EUR 0.05 (2019: EUR 0.05) for each preference share	829	829

Sixt SE Annual Report 2021

CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Liabilities and provisions

4.25 Provisions for pensions and other post-employment benefits are broken down as follows:

Provisions for pensions and other post-employment benefits
in EUR thousand	2021	2020
Provisions for pensions	12,754	14,028
Other post-employment benefits	2,237	1,405
Defined benefit obligations	14,991	15,433
Fair value of plan assets	11,940	12,293
Group total	3,051	3,141

The valuation of provisions for pensions and other post-employment benefits rely on actuarial reports. The reports use the following actuarial assumptions:

Actuarial assumptions
in %	2021	2020
Discount rate	0.3 - 6.8	0.0 - 6.7
Assumed salary increase	0.5 - 10.0	0.5 - 10.0
Assumed pension increase	-	-
	BVG 2020 GT / ISTAT 2000 / IALM	BVG 2015 GT / ISTAT 2000 / IALM
Mortality table	2012-14	2012-14

Provisions for pensions – Switzerland

Pension schemes in the Sixt Group contain mainly defined contribution pension plans under statutory pension insurance. In Switzerland each employer is required by law to provide post-employment benefits schemes against the economic risks of retirement, death and invalidity to entitled employees.

Therefore, Sixt offers its Swiss employees funded defined benefit plans, which are managed by an external pension fund. The pension fund is responsible for the investment policy and asset management, as well as for all changes in the plan conditions and the determination of contributions to finance the benefits. In case of underfunding the pension fund can raise additional contributions from employers and employees. The following table shows the development of the defined benefit pension plans:

Sixt SE Annual Report 2021 — 137

CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

| Development of defined benefit pension plans
in EUR thousand | Defined benefit obligations | | Fair value of plan assets | | Net balance of defined benefit obligations | |
| --- | --- | --- | --- | --- | --- | --- |
| | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 |
| Balance as at 1 Jan. | 14,028 | 15,769 | 12,293 | 13,448 | 1,735 | 2,321 |
| Current service costs | 736 | 1,056 | - | - | 736 | 1,056 |
| Past service costs and plan settlements | -180 | - | - | - | -180 | - |
| Net interest costs of defined benefit obligations | 18 | 14 | 16 | 12 | 2 | 2 |
| Expenses recognised in the consolidated income statement | 574 | 1,070 | 16 | 12 | 558 | 1,057 |
| Gains/losses on plan assets | - | - | 486 | 288 | -486 | -288 |
| Actuarial gains/losses | | | | | | |
| Experience gains/losses | 450 | -363 | - | - | 450 | -363 |
| Changes in demographic assumptions | -601 | - | - | - | -601 | - |
| Changes in financial assumptions | -186 | -76 | - | - | -186 | -76 |
| Remeasurement for defined benefit obligations recognised in other comprehensive income | -337 | -439 | 486 | 288 | -823 | -727 |
| Employer contributions | - | - | 692 | 670 | -692 | -670 |
| Plan participants' contributions | 692 | 670 | 692 | 670 | - | - |
| Benefits paid | -2,760 | -2,038 | -2,760 | -2,038 | - | - |
| Foreign currency translation effects | 557 | 77 | 521 | 64 | 36 | 13 |
| Reclassification as held for sale | - | -1,081 | - | -821 | - | -260 |
| Other reconciling items | -1,511 | -2,372 | -854 | -1,456 | -657 | -916 |
| Balance as at 31 Dec. | 12,754 | 14,028 | 11,940 | 12,293 | 814 | 1,735 |

The weighted average duration of the defined benefit obligations from pensions was around 15 years (2020: 15 years). Employer contributions expected to be paid for defined benefit obligations in the following year amount to EUR 741 thousand (2020: EUR 663 thousand).

The pension scheme is provided through an external pension fund, which manages the plan assets. As at balance sheet date,

the plan assets are attributable to other assets without quoted market prices.

Sensitivity analysis

The sensitivity analysis assumes in each case a parallel shift of half a percentage point. This would result in the changes of values of the reported defined benefit obligation presented in the following table:

Sensitivity analysis of defined benefit obligations in EUR thousand	Changes in the defined benefit obligations		Changes in the defined benefit obligations
	2021		2020
	+ 0.5 percentage points	-0.5 percentage points	+ 0.5 percentage points	-0.5 percentage points
Discount rate	-665	753	-683	778
Assumed salary increase	166	-167	142	-114
Assumed pension increase	419	-400	542	-514

The decrease / increase of the life expectancy in the assumptions by one year respectively would result in a change of the defined benefit obligations by EUR -209 thousand / EUR 240 thousand (2020: EUR -241 thousand / EUR 279 thousand).

14.26\ Other provisions consist mainly of provisions for staff, taxes and the operating rental business (fleet related costs).

Furthermore, the miscellaneous provisions include provisions for legal costs and commitments from rental agreements.

Of the obligations included in other provisions EUR 142,445 thousand (2020: EUR 94,300 thousand) are expected to be settled within one year and EUR 16,748 thousand (2020: EUR 515 thousand) are due in more than one year.

Sixt SE Annual Report 2021 — 139

CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

| Other provisions
in EUR thousand | Rental business
(fleet related) | Personnel | Taxes | Miscellaneous | Total |
| --- | --- | --- | --- | --- | --- |
| Balance as at 1 Jan. | 51,724 | 27,027 | 7,704 | 8,361 | 94,816 |
| Additions | 56,144 | 53,844 | 3,341 | 15,433 | 128,762 |
| Reversals | - | -5,128 | -302 | -580 | -6,010 |
| Utilised | -38,576 | -20,996 | -30 | -673 | -60,274 |
| Foreign exchange differences | 414 | 787 | - | 699 | 1,899 |
| Balance as at 31 Dec. | 69,706 | 55,534 | 10,713 | 23,240 | 159,193 |
| Thereof current | 69,706 | 47,847 | 10,713 | 14,179 | 142,445 |
| Thereof non-current | - | 7,687 | - | 9,061 | 16,748 |

4.27 Financial liabilities

comprise liabilities from bonds and issued borrower’s note loans, liabilities from commercial papers and bank loans as well as lease liabilities.

| Financial liabilities
in EUR thousand | Residual term of up to 1 year | | Residual term of 1 to 5 years | | Residual term of more than 5 years | |
| --- | --- | --- | --- | --- | --- | --- |
| | 31 Dec. 2021 | 31 Dec. 2020 | 31 Dec. 2021 | 31 Dec. 2020 | 31 Dec. 2021 | 31 Dec. 2020 |
| Bonds | 249,510 | - | 547,922 | 796,033 | - | - |
| Borrower’s note loans | - | 265,142 | 717,724 | 692,966 | - | 92,860 |
| Commercial papers | - | 88,000 | - | - | - | - |
| Liabilities to banks | 32,986 | 2,961 | 12,311 | 12,164 | 50,529 | 53,663 |
| Lease liabilities | 109,958 | 86,169 | 200,851 | 207,084 | 73,352 | 73,810 |
| Other liabilities | 6,206 | 7,340 | - | - | - | - |
| Group total | 398,661 | 449,612 | 1,478,807 | 1,708,246 | 123,881 | 220,333 |

Borrower’s note loans were issued in several tranches with a total nominal value of EUR 719 million (2020: EUR 995 million and USD 70 million). These relate entirely to non-current financial liabilities (2020: EUR 771 million and USD 20 million). Interest is paid at a variable or fixed rate and the agreed nominal maturities are between five and seven years (2020: between two and seven years). In the financial year 2021 new long-term borrower’s note loans with maturities of five years were issued with a total nominal value of EUR 100 million.

The borrower’s note loans with a nominal value of EUR 114 million and USD 50 million, reported in the previous year under current financial liabilities, were repaid in 2021. Furthermore, borrower’s note loans with a nominal value of EUR 110 million reported in the previous year under current financial liabilities and borrower’s note loans with a nominal value of EUR 152 million and USD 20 million, reported in the previous year under non-current financial liabilities were repaid early in 2021.

The bonds include a EUR 250 million bond issued on the capital market in 2016 with a nominal interest rate of 1.125% p.a. and a maturity of six years until 2 November 2022, a EUR 250 million bond issued on the capital market in 2018 with a nominal interest rate of 1.50% p.a. and a maturity of six years until 21 February 2024 and a EUR 300 million bond issued on the capital market in 2020 with a nominal interest rate of 1.75% p.a. and a maturity of four years until 9 December 2024, each issued by Sixt SE. There are conditional call options for the issuer and put options for the bond holders.

The current liabilities to banks include short-term borrowings in the amount of EUR 30 million taken out by utilising credit lines available to the Group. Other liabilities consist mainly of deferred interest.

Liabilities to banks also include two long-term investment loans in the amount of EUR 65.8 million (2020: EUR 68.8 million). These loans have been secured by mortgages.

140 — Sixt SE Annual Report 2021

CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

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

The development of current and non-current financial liabilities is presented below:

Changes in financial liabilities
in EUR thousand	31 Dec. 2021	31 Dec. 2020
Closing balance previous year	2,378,192	3,437,209
Cash flows	-488,311	-183,656
Other non-cash changes
Leases	92,989	88,418
Currency translation	17,921	-20,806
Reclassification as held for sale	-	-939,236
Other	557	-3,737
Balance as at 31 Dec.	2,001,349	2,378,192

14.28 Other liabilities are broken down as follows:

Other liabilities
in EUR thousand	31 Dec. 2021	31 Dec. 2020
Financial other liabilities
Liabilities to affiliated companies and other investees	390	610
Payroll liabilities	7,114	6,422
Miscellaneous liabilities	37,871	19,553
Non-financial other liabilities
Deferred income	1,307	988
Tax liabilities	54,801	59,687
Contract liabilities	41,426	19,923
Group total	142,910	107,184
Thereof current	142,910	107,184
Thereof non-current	-	-

Miscellaneous other liabilities include interest-bearing liabilities from customer deposits and the reported currency hedging transactions. In the previous year miscellaneous liabilities contained in addition minority interests in equity and in the net profit of consolidated partnerships (2020: EUR 38 thousand).

Contract liabilities relate to prepayments received from customers for the rental of vehicles. The underlying performance obligation is expected to be fulfilled within the next twelve months.

14.29 Trade payables in the amount of EUR 401,729 thousand (2020: EUR 422,813 thousand) comprise current liabilities arising from deliveries to the Group, particularly of vehicles for the rental fleet, and other purchases in the course of operating activities.

Sixt SE Annual Report 2021 — 141

CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

4.3 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 in EUR thousand	IFRS 9 measurement category^{1}	Measurement basis for fair value	31 Dec. 2021	31 Dec. 2020	31 Dec. 2021	Fair value
Non-current assets
Financial assets	FVTPL	Level 3	1,513	1,393	1,513	1,393
Financial assets	FVTOCI	Level 1	1,398	8,541	1,398	8,541
Total return swap	Hedge Accounting	Level 2	1,063	-	1,063	-
Other receivables	AC		6,551	4,716
Total			10,525	14,650	3,974	9,934
Current assets
Currency derivatives	FVTPL	Level 2	207	5,613	207	5,613
Trade receivables	AC		514,778	530,043
Deposits	AC		50,024	-
Other receivables	AC		77,511	67,677
Total			642,520	603,333	207	5,613
Non-current liabilities
Bonds	AC	Level 1	547,922	796,033	564,208	809,687
Borrower's note loans	AC	Level 2	717,724	785,826	714,502	789,499
Liabilities to banks	AC	Level 2	62,840	65,826	60,110	69,386
Lease liabilities	IFRS 16		274,203	280,894
Total			1,602,688	1,928,579	1,338,820	1,668,572
Current liabilities
Bonds	AC	Level 1	249,510	-	251,700	-
Borrower's note loans	AC	Level 2	-	265,142	-	267,408
Commercial papers	AC	Level 2	-	88,000	-	87,972
Liabilities to banks	AC	Level 2	32,986	2,961	33,759	3,764
Lease liabilities	IFRS 16		109,958	86,169
Other financial liabilities	AC		6,206	7,340
Trade payables	AC		401,729	422,813
Currency derivatives	FVTPL	Level 2	7,425	1,111	7,425	1,111
Financial other liabilities	AC		37,951	25,474
Total			845,765	899,010	292,884	360,256

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

142 — Sixt SE Annual Report 2021

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.

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 non‐current and current financial instruments it was assumed that the fair values correspond to the carrying amount (amortised cost) unless otherwise specified in the table. The fair values of borrower's note loans, commercial papers and liabilities to banks reported as non‐current and current liabilities were calculated as the present values of the future expected cash flows. Standard market rates of interest of between 0.0% p.a. and 2.5% p.a. for financial instruments that will be settled in Euro (2020: between 0.2% p.a. and 1.6% p.a.) as well as in the previous year between 0.5% p.a. and 0.9% p.a. for financial instruments that will be settled in US‐Dollar based on the respective maturities were used for discounting. The fair values of the bonds reported as non‐current and current liabilities have been transferred from Level 2 to Level 1, and are based on the quoted market prices of the bonds. The previous years disclosure has been adjusted accordingly.

The fair values determined on the basis of unobservable market date relate to equity investments which are valued on the basis of their net asset value. The change in the reported carrying amounts and fair values derives from results recognised in profit or loss in the amount of EUR 78 thousand (2020: EUR 169 thousand), additions of equity instruments in the amount of EUR 85 thousand (2020: EUR ‐ thousand) and changes in the scope of consolidation in the amount of EUR ‐42 thousand (2020: EUR ‐ thousand). The prior year change included also reclassification to the item asset held for sale in the amount of EUR ‐26 thousand.

Net gains from financial assets in the AC measurement category (measured at amortised cost) amounted to EUR 2,211 thousand (2020: EUR 1,510 thousand) and relate to income from payments received on receivables previously written off.

As in the previous year, there were no net gains or losses in the financial year on financial liabilities in the AC measurement category (measured at amortised cost).

Total interest income from financial assets not measured at fair value through profit or loss amounted to EUR 766 thousand (2020: EUR 2,730 thousand). The total interest expense on financial liabilities not measured at fair value through profit or loss amounted to EUR 37,849 thousand (2020: EUR 37,250 thousand).

The subsequent measurement of derivatives is made at fair value (level 2 measurement).

As at balance sheet date, asset from currency derivatives amounted to EUR 207 thousand (2020: EUR 5,613 thousand). The financial liabilities from currency derivatives amounted to EUR 7,425 thousand (2020: EUR 1,111 thousand). A volume of EUR 473 million (2020: EUR 352 million) is hedged against currency derivatives, denominated US‐Dollar, British Pound and Swiss Franc, with a maximum remaining term of up to one month (2020: two months). As in the previous year, the currency derivatives are not designated in a hedge relationship for accounting purposes. The net result from the measurement of currency derivatives as at reporting date came to EUR ‐7,217 thousand (2020: EUR 4,502 thousand).

Assets from total return swaps on the Sixt ordinary shares in the amount of EUR 1,063 thousand (2020: EUR ‐ thousand) are taken out to hedge future cash flows from a share‐based payments programme for employees. Based on the expected employee fluctuation, 82% of the total return swaps are designated into a hedge relationship. The valuation is based on standard methods considering the share price of the Sixt ordinary shares, the base interest rate and the expected dividend yield. Sources of ineffectiveness are expected from diverging characteristics of the underlying and the hedging transaction, e.g. dividend payments and the interest component of the total return swaps as well as possible initial fair values of the hedging transaction. According to IFRS 9 the hedging will be rebalances in the future in case of significant ineffectiveness. As at balance sheet date a volume of EUR 3.0 million is hedged against total return swaps with a remaining term of up to four years. More details are shown below:

CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Designated hedging instruments – Total return swap
in EUR thousand	2021
Financial other assets	1,063
Financial other liabilities	-
Fair value hedging instrument	1,063
Change in fair value of the hedging instrument – designated risk	793
Fair value underlying transaction	441
Change in fair value of the underlying transaction – designated risk	672
Ineffectiveness recognised in the consolidated income statement (other operating income)	121
Ineffective part recognised in the consolidated income statement (other operating income)	251
Recycling from other comprehensive income to income statement (personnel expense)	-100

Sensitivity analysis

Based on the parallel shift in the yield curves of +100 / -100 basis points, interest expense for variable-rate financial liabilities would increase by EUR 1,973 thousand respectively decrease by EUR 300 thousand (2020: EUR 2,057 thousand increase or decrease by EUR - thousand) not taking into account possible economic compensation from new financing transactions. The sensitivity on the downward shift in the yield curves is partially limited by contractual agreements about minimum base interest rates.

The sensitivity analysis for the reported currency derivatives assumes a change in the EUR exchange rates of +10 / -10 percentage points. The reported fair values as at 31 December 2021 (other current assets / other current liabilities) would then change by EUR 38,443 thousand / EUR -46,986 thousand (2020: EUR 31,576 thousand / EUR -38,551 thousand).

The sensitivity analysis for the reported total return swaps assumes a parallel shift in the yield curves of +100 / -100 basis points. The reported fair values as at 31 December 2021 (other non-current assets) would then change by EUR 136 thousand / EUR -132 thousand (2020: EUR - thousand / EUR - thousand). Besides the parallel shift of the yield curves a change in the share price of +10 / -10 percentage points was assumed. This would result in an increase by EUR 422 thousand respectively decrease by EUR 422 thousand of the reported fair values.

Given aforementioned changes to valuations from interest rate, currency exchange and share price risks, not taking into account any tax effects, this would result in a change in equity of EUR 37,028 thousand / EUR -47,240 thousand (2020: EUR 29,519 thousand / EUR -38,551 thousand) and a change in the consolidated profit/loss of EUR 36,850 thousand / EUR -47,062 thousand (2020: EUR 29,519 thousand / EUR -38,551 thousand) as well as a change in other comprehensive income of EUR 178 thousand / EUR -178 thousand.

Financial risk management and hedging

The Sixt Group is exposed to the following financial risks, which are addressed through the risk management system that has been implemented:

Interest rate and market price risk

Alongside medium- and long-term financial instruments bearing a fixed rate of interest, the Sixt Group also uses variable-rate financial instruments to finance investments mainly in the rental fleet and is therefore exposed to interest rate risk. Derivative financial instruments such as interest rate caps and interest rate swaps may in principle be used to limit interest rate risk as part of the risk management. In this context, internal Group guidelines stipulate the main duties, competencies, responsibilities, reporting requirements and control tools. By entering into hedging transactions as part of risk management, the Group may deliberately convert existing variable-rate liabilities into synthetic fixed-rate refinancing. In contrast, given appropriate expectations on the future development of short- and long-term interest rates, derivative instruments can also be used to achieve a defined proportion of variable-rate liabilities. As at reporting date, as in the previous year, the Group does not report any derivative financial instruments.

There are no significant market price risks relating to financial instruments.

Counterparty default risk

Creditworthiness checks are performed in accordance with internal guidelines prior to entering into an agreement in order to minimise counterparty default risk. Customers' creditworthiness is also checked at regular intervals during the term of the agreement. For expected default risks a valuation allowance is recognised. When there are no realistic prospects of recovering the amount, the relevant receivable is derecognised. In addition, there is the general risk that suppliers will not be able to meet their obligations under buy-back agreements. In given cases, Sixt bears the remarketing risk relating to the vehicles. In this context too, Sixt performs regular credit checks.

Deposits with banks consist only of short-term maturity deposits. The ratings of the banks are monitored on an ongoing basis. The

Sixt SE Annual Report 2021

CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

default risk is estimated to be negligible on the basis of the awarded external ratings.

Share price risk

With the newly initiated share-based employee payment programme (SPP) the Sixt Group is exposed to a share price risk. The amount of the payment obligation depends on the development of the share price of the Sixt ordinary share during the term of the programme. In order to hedge against the share price risk, Sixt SE has entered into a hedging transaction with a bank in the form of a total return swap. The total return swaps are designated and accounted for as cash flow hedges. As at balance sheet date derivative financial instruments amounting to a nominal value of EUR 3.0 million were held to hedge against share price risk. The fair value of the transaction was in total EUR 1.1 million.

Analysis of trade receivables

Trade receivables are classified by default risk as follows:

| Trade receivables by risk class
in EUR thousand | Gross receivables | Impairments | Net receivables |
| --- | --- | --- | --- |
| Very low | 395,921 | 3,376 | 392,545 |
| Low | 110,266 | 9,273 | 100,993 |
| Increased | 27,770 | 15,895 | 11,875 |
| Highly increased | 77,115 | 67,750 | 9,365 |
| Group total as at 31 Dec. 2021 | 611,072 | 96,295 | 514,778 |
| Trade receivables by risk class
in EUR thousand | Gross receivables | Impairments | Net receivables |
| Very low | 429,506 | 4,397 | 425,108 |
| Low | 72,660 | 6,306 | 66,354 |
| Increased | 38,778 | 18,783 | 19,995 |
| Highly increased | 84,950 | 66,365 | 18,585 |
| Group total as at 31 Dec. 2020 | 625,893 | 95,851 | 530,043 |

Trade receivables predominantly comprise receivables from rental business with Sixt Group end-customers and receivables from suppliers relating to the sale of used vehicles as part of buy-back commitments, or commercial and private buyers as part of the sale on the open market. At the reporting date, trade receivables include risk concentrations resulting from vehicles sales to manufacturers and dealers.

The Group applies the simplified approach for impairment described in IFRS 9, whereby an impairment allowance in the amount of expected credit losses over the lifetime of the receivable is recognised for all instruments irrespective of their credit quality. To measure the expected credit losses, parameters such as customer group, credit quality and transaction type are used. For individual combinations of the aforementioned parameters different rates in accordance with the management expectations are applied to determine the allowances. With regard to the coronavirus pandemic the rates for allowances based on the expectation of higher credit losses were adjusted in the previous year and have been reviewed in the reporting year. Due to the use of the simplified approach the change in the allowance account is solely displayed as net amount. In the event of concrete indications of default, for example the insolvency of the debtor, the relevant receivables are fully derecognised regardless of valuation allowances, which may have been made.

The maximum default amount is the reported carrying amount of the net receivable. No credit derivatives or similar hedging instruments were used to cover credit risk in the period under review.

In the financial year the allowance account for trade receivables developed as follows:

Sixt SE Annual Report 2021 — 145

CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Change in the allowance account	Balance as at	Reclassification as held for sale	Change	Balance as at
in EUR thousand	1 Jan. 2021			31 Dec. 2021
Impairments for trade receivables	95,851	-	444	96,295
Change in the allowance account	Balance as at	Reclassification as held for sale	Change	Balance as at
in EUR thousand	1 Jan. 2020			31 Dec. 2020
Impairments for trade receivables	80,065	-6,136	21,922	95,851

Analysis of receivables from insurances in the other assets

Receivables from insurances by risk class	Gross receivables	Impairments	Net receivables
in EUR thousand
Increased	25,518	10,855	14,662
Highly increased	11,646	9,328	2,318
Group total as at 31 Dec. 2021	37,163	20,183	16,980
Receivables from insurances by risk class	Gross receivables	Impairments	Net receivables
in EUR thousand
Increased	30,011	10,611	19,400
Highly increased	15,606	11,532	4,075
Group total as at 31 Dec. 2020	45,618	22,143	23,475

All the receivables are impaired. The maximum default amount is the reported carrying amount of the net receivable.

In the financial year the allowance account for other assets developed as follows:

Change in the allowance account	Balance as at	Reclassification as held for sale	Change	Balance as at
in EUR thousand	1 Jan. 2021			31 Dec. 2021
Impairments for other assets	22,143	-	-1,960	20,183
Change in the allowance account	Balance as at	Reclassification as held for sale	Change	Balance as at
in EUR thousand	1 Jan. 2020			31 Dec. 2020
Impairments for other assets	18,682	-1,097	4,558	22,143

In the year under review the expenses for derecognised trade receivables and receivables from insurances amounted to EUR 88,727 thousand (2020: EUR 32,323 thousand). The expense for derecognition refers to the recognised receivables without taking into account the valuation allowances, which may already have been made.

The total of expense for impairments and income from reversal of impairments amounted to EUR -3,454 thousand (2020: EUR 30,516 thousand).

The proceeds from payments received on previously derecognised receivables amounted to EUR 2,211 thousand (2020: EUR 1,510 thousand).

146 — Sixt SE Annual Report 2021

CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Liquidity risk

Liquidity risk is managed via financial planning performed in accordance with internal guidelines. Sixt to its own assessment has sufficient cash and cash equivalents, opportunities for refinancing on the capital markets and credit lines not used.

Analysis of the repayment amounts of financial liabilities

The following table shows the repayment amounts (including assumed future payable interest) at their respective maturities:

Repayment amounts by maturity		Borrower's note	Bonds	Liabilities to banks	Lease liabilities	Total
in EUR thousand		loans
2022		6,568	261,813	33,759	114,509	416,648
2023		166,068	9,000	3,760	81,261	260,089
2024		291,610	559,000	3,760	59,554	913,924
2025		83,127	-	3,760	41,891	128,778
2026		194,980	-	3,760	25,244	223,984
2027		-	-	50,580	21,654	72,234
2028 and later		-	-	-	56,145	56,145
31 Dec. 2021		742,351	829,813	99,379	400,258	2,071,801
Repayment amounts by maturity	Commercial papers	Borrower's note	Bonds	Liabilities to banks	Lease liabilities	Total
in EUR thousand		loans
2021	88,000	275,237	11,813	3,770	88,866	467,687
2022	-	64,638	261,813	3,760	83,712	413,923
2023	-	277,121	9,000	3,760	61,552	351,433
2024	-	290,519	559,000	3,760	45,774	899,053
2025	-	82,009	-	3,760	29,468	115,237
2026	-	93,858	-	3,760	18,767	116,386
2027 and later	-	-	-	50,580	57,764	108,344
31 Dec. 2020	88,000	1,083,383	841,625	73,150	385,905	2,472,062

The financial liabilities maturing in 2022 will be repaid using the financing mix available to the Group among others from new lending of funds on the capital markets and the usage of bank credit lines as well as the usage of commercial papers.

Analysis of the repayment amounts of currency derivatives and total return swaps

The following table shows the repayment amounts at their respective maturities:

Repayment amounts by maturity	Currency derivatives	Total return swaps	Total
in EUR thousand
2022	-7,567	47	-7,520
2023	-	43	43
2024	-	44	44
2025 and later	-	924	924
31 Dec. 2021	-7,567	1,058	-6,509

Sixt SE Annual Report 2021 — 147

In the previous year the repayment amounts for currency derivates held by the Group amount to EUR 4,519 thousand and were due in full in financial year 2021.

Exchange rate and country risk

The vast majority of receivables and payables are due in local currency in the country where the respective Group company is based. As a result, the Sixt Group is able to neutralise the exchange rate risk in part through natural hedges. However, the Group's external financing is mainly in euros, so that exchange rate risks arise primarily from receivables and liabilities for the financing of subsidiaries in non-euro countries. Currency swaps or other currency derivatives are used in particular to limit these exchange rate risks within the Group.

Capital management

The Sixt Group manages the Group's capital with the goal of creating a financial profile that supports the Group's growth targets, while providing the necessary financial flexibility and diversification. The key objective is a Group equity ratio (equity + total assets) of at least 20%. This ensures that all Group companies can operate on the basis of the going concern assumption.

The basis of the Group's financial profile is the equity of the parent company. As at balance sheet date, the Group's equity ratio was 38.6% (2020: 31.5%). Other key elements of the Group's financial profile are the financial instruments reported in current and non-current financial liabilities. The proportion of current and non-current financial liabilities to total assets amounted to 44.3% at reporting date (2020: 53.7%). In addition to the reported financial liabilities, the Group has entered into operate lease agreements to refinance its fleet.

CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

5. OTHER DISCLOSURES

5.1 SEGMENT REPORTING

| Segment Report
in EUR million | Germany | | | Europe | | North America | | Other | | Reconciliation | | Group |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 |
| External revenue | 739.6 | 677.8 | 945.6 | 576.4 | 584.6 | 264.2 | 12.6 | 9.9 | - | - | 2,282.4 | 1,528.3 |
| Internal revenue | 36.7 | 27.4 | 8.9 | 7.5 | 6.3 | 3.0 | 20.2 | 18.4 | -72.1 | -52.4 | - | 3.8 |
| Total revenue | 776.3 | 705.2 | 954.5 | 583.9 | 590.9 | 267.2 | 32.8 | 28.2 | -72.1 | -52.4 | 2,282.4 | 1,532.1 |
| Leasing expenses for rental vehicles | 43.8 | 52.0 | 10.5 | 8.7 | - | - | - | - | -0.2 | -0.0 | 54.0 | 60.7 |
| Depreciation of rental vehicles | 55.8 | 79.2 | 129.4 | 114.1 | 53.2 | 101.1 | - | - | - | -0.0 | 238.4 | 294.4 |
| Interest income | 28.6 | 33.1 | 4.9 | 5.3 | 0.5 | 1.1 | - | - | -33.3 | -36.8 | 0.8 | 2.7 |
| Interest expense | -34.3 | -30.9 | -21.5 | -17.1 | -14.4 | -23.7 | - | - | 34.6 | 36.6 | -35.6 | -35.2 |
| Corporate EBITDA | 177.6 | 48.7 | 233.3 | 78.9 | 163.6 | -52.0 | 1.4 | 6.9 | - | - | 575.9 | 82.5 |
| Other depreciation and amortisation | | | | | | | 4.5 | 4.8 | - | - | 131.6 | 163.7 |
| Rect. net interest expense | | | | | | | - | - | - | - | 34.9 | 32.5 |
| EBIT¹ | | | | | | | -3.1 | 2.0 | - | - | 479.2 | -48.7 |
| Financial result | | | | | | | -2.2 | -0.6 | - | - | -37.0 | -32.8 |
| EBT² | | | | | | | -5.4 | 1.5 | - | - | 442.2 | -81.5 |
| Investments³ | 67.3 | 117.9 | 39.9 | 20.2 | 60.2 | 71.1 | 34.4 | 87.0 | -58.6 | -171.3 | 143.3 | 124.9 |
| Segment assets | 3,227.7 | 3,262.8 | 2,061.8 | 1,915.3 | 1,027.8 | 810.2 | 1,042.8 | 1,021.5 | -2,904.8 | -2,645.0 | 4,455.2 | 4,364.8 |
| Segment liabilities | 2,293.1 | 2,437.2 | 1,204.1 | 1,231.2 | 628.7 | 550.5 | 132.2 | 135.8 | -1,549.9 | -1,348.5 | 2,708.2 | 3,006.1 |
| Employees⁴ | 2,704 | 3,171 | 2,421 | 2,585 | 955 | 902 | 319 | 263 | - | - | 6,399 | 6,921 |

¹ Corresponds to earnings before interest and taxes (EBIT)
² Corresponds to earnings before taxes (EBT)
³ Investments in long-term assets including right of use assets, excluding rental vehicles
⁴ Annual average

The main business activity of the Sixt Group is vehicle rental including other related services and brokerage of transfer services. These activities are also summarised under Mobility. Activities that cannot be allocated to the main business activities and segments, such as holding company activities and real estate leasing, are combined in the Other segment. The Management Board controls Group activities based on reporting structured according to regional aspects. Resources are allocated and the Group's performance is assessed by the Management Board at the level of individual countries.

The Groups main activity is similar in all countries. Based on similar economic conditions and business characteristics the countries are grouped into the reportable segments Germany, Europe (without Germany) and North America. The key parameter for the assessment of the performance by the Management Board is Corporate EBITDA. Corporate EBITDA is defined as earnings before depreciation, amortisation, net finance costs

and taxes (EBITDA) but with additional consideration of fleet related expenses such as depreciation of rental vehicles and attributable net interest expense.

Segment reporting is generally based on the accounting policies in the Consolidated Financial Statements. Receivables, liabilities, income and expenses between the segments are eliminated in the reconciliation to the Group figures. Group assets and liabilities do not recognise any tax positions. Internal revenue includes revenues of the continuing operations towards other continuing operations as well as in the previous year towards the discontinued operations.

The following geographic information analyses the Group's consolidated revenue and the Group's assets (excluding tax positions) of the continuing operations by Group company's country of domicile.

Sixt SE Annual Report 2021 — 149

CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

| By region
in EUR million | Consolidated revenue | | Segment assets | |
| --- | --- | --- | --- | --- |
| | 2021 | 2020 | 2021 | 2020 |
| Germany | 749.6 | 687.9 | 1,671.2 | 1,890.3 |
| Europe/Other | 948.3 | 579.9 | 1,761.3 | 1,661.0 |
| Thereof France | 293.4 | 197.1 | 604.1 | 624.6 |
| North America | 586.5 | 264.2 | 1,022.7 | 813.5 |
| Group total | 2,284.3 | 1,532.1 | 4,455.2 | 4,364.8 |

5.2 CONTINGENT LIABILITIES AND OTHER FINANCIAL OBLIGATIONS

Contingent liabilities

At the end of the financial year there were contingencies from guarantees or similar obligations in the amount of EUR 89.9 million (2020: EUR 54.6 million).

Other financial obligations

In addition to provisions and liabilities, the Group has other financial obligations that result mainly from short-term leases entered into to refinance the rental fleet and from obligations under lease agreements on buildings for which no right of use assets and lease liabilities have been recognised.

Other financial obligations
in EUR million	31 Dec. 2021	31 Dec. 2020
Due within one year	48.6	44.2
Due in one to five years	2.1	1.3
Group total	50.7	45.4

Purchase commitments under agreements concluded as at balance sheet date in respect of vehicle deliveries for the rental fleet in the coming year amounted to around EUR 1,486.3 million (2020: EUR 787.2 million).

5.3 SHARE-BASED PAYMENTS

In the year under review the Group had two share-based payment programmes: the employee participation programme (Matching Stock Programme – MSP) that was initiated in 2012 and is recognised in the category of equity-settled share-based payment programme as well as the in 2021 newly initiated employee participation programme (Stock Performance Programme – SPP) which is recognised in the category of cash-settled share-based payment programme. The programmes are described in detail below.

Cash-settled share-based payment for employees

In 2021 the Management Board and Supervisory Board of Sixt SE resolved to implement a Stock Performance Programme (SPP) for a selected group of employees, senior executives and members of the Management Board of Sixt SE at the company and its affiliated companies. The aim of the SPP is to achieve and encourage a participation of the participants in the sustainable success of Sixt SE.

The Management Board of Sixt SE – with the approval of the Supervisory Board if the Management Board itself is concerned – sets the maximum participation volume for each individual beneficiary. The maximum participation volume for all employees and senior executives, with the exception of members of the Management Board, is limited to EUR 10 million per year of allocation.

A participant's full entitlement to payment arises four years after the grant date (end of term), provided that the participant still has a contract of employment with a company of the Sixt Group which has not been terminated or is a member of the management of a company of the Sixt Group. If this is not the case at the end of the term of the programme, i.e. the participant has left, the phantom stocks are forfeited in full or are paid out on a pro rata basis, depending on the agreement with the participant and the reason for his or her departure.

The SPP gain is determined at the end of the term and is calculated by multiplying the number of phantom stocks, that have been granted and have not been forfeited due to the participant's departure, by the volume-weighted average price of Sixt ordinary share in Xetra trading on the Frankfurt stock exchange during the last ten trading days before the exercise date. Any taxes, contributions and other levies due on the SPP gain shall be borne by the participant. The net amount remaining thereafter will be compensated to the participant in cash.

The allocation of phantom stocks does not entitle the participants to receive dividends during the term of the SPP.

150 — Sixt SE Annual Report 2021

CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

If, during the term of the SPP, a dilution measure or other measure affecting Sixt ordinary share occurs, that has an economic effect on the value of the phantom stocks (e.g. share split, consolidation of shares), Sixt SE will adjust the number of phantom stocks accordingly.

The number of phantoms stocks under the SPP changed as follows:

Number of phantom stocks	2021 allocation
	2021
Outstanding at the beginning of the financial year	-
Granted during financial year	30,298
Forfeited during financial year	-193
Outstanding at the end of the financial year	30,105

A Black-Scholes model was used to estimate the fair value of SPP phantom stocks. The following table lists the input data to the models used:

Simulation model parameters	2021 allocation
Weighted average fair values at measurement date in Euro	140.43
Expected dividend yield in %	2.93
Expected term until exercise from issue in years	3.38
Weighted average share price in Euro	155.28
Weighted average strike price in Euro	0.00

In 2021, the Group recognised expenses in the amount of EUR 441 thousand (2020: EUR - thousand). The corresponding provision amounted to EUR 441 thousand (2020: EUR - thousand).

To hedge against the share price risk, the Group entered into a derivative hedge transaction.

Equity-settled share-based payment for employees

In September 2012 the Management Board and Supervisory Board of Sixt SE resolved to implement a Matching Stock Programme for a selected group of employees, senior executives and members of the Management Board of Sixt SE at the company and its affiliated companies (MSP 2012). The programme enables employee participation in the form of shares while avoiding any dilutions for existing shareholders of Sixt SE, i.e. new shares are not issued for settlement, but shares are bought from the market.

To participate in the MSP, each participant had to make a personal investment by acquiring a bond issued by Sixt SE. The bonds acquired for the MSP 2012 carried a coupon of 4.5% p.a. The total volume invested by all participants was limited to a maximum of EUR 7 million. The bond has been repaid in accordance with the contractual terms in December 2020.

The Management Board of Sixt SE – with the approval of the Supervisory Board if the Management Board itself is concerned – set the maximum participation volume for each individual beneficiary. Participants in the MSP had to have a contract of employment with Sixt SE or one of its subsidiaries which has not been terminated at the time of subscribing for the MSP.

Every EUR 1,000 of paid-up subscription amount entitles to subscribe to 500 stock options per annual tranche in accordance with the MSP terms and conditions.

According to the conditions on each 1 December every year from 2012 (first time) to 2018 (last time) one tranche of stock options has been allocated (a total of seven tranches). So each participant is entitled to subscribe up to a total of 3,500 stock options for every EUR 1,000 of paid-up subscription amount (7 tranches with 500 stock options each).

In 2021, as in the previous year, no further tranche of stock options has been allocated to participants of the MSP 2012.

The allocated stock options can only be exercised after a lock-up period of four years, starting from the allocation of the respective tranche. The stock options can only be exercised if the exercise price since the allocation of the respective tranche is 20% higher than the initial price of said tranche (exercise threshold). The initial price of the stock options corresponds to the average unweighted closing price of Sixt preference shares in Xetra trading on the Frankfurt Stock Exchange during the last 60 trading days before the respective stock options of the tranche concerned are allocated. The exercise price is the average unweighted closing price of Sixt preference shares in Xetra trading on the Frankfurt Stock Exchange during the last 60 trading days before the stock options of a tranche are exercised. Stock options allocated as part of a tranche are deemed to have been exercised on the first trading day following the end of the lock-up period, if the exercise threshold has been reached. If the exercise threshold is not reached, the stock options expire without replacement.

Sixt SE Annual Report 2021 — 151

CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The exercise gain (before taxes) for a tranche, calculated if the stock options are exercised, must not exceed 5% of the regular earnings before taxes (EBT) as reported in the prior to each exercise most recent approved Consolidated Financial Statements of Sixt SE. If it does, the amount must be reduced proportionately for all participants. In addition, the exercise gain (before taxes) of each tranche is limited for every participant to twice his paid-up investment volume. An amount less the taxes and contributions on the exercise gain payable by the participant, is credited to each participant in preference shares of Sixt SE which Sixt SE acquires for the participant. These shares are subsequently transferred to a blocked custody account in the participant's favour. The participant is free to draw on the shares after another year. The total term of the MSP, including this lock-up period, is eleven years until 2023.

If, during the term of the MSP, adjustments are made to the share capital of Sixt SE or restructuring measures are implemented that have a direct impact on the share capital of Sixt SE

and this causes the value of the stock options to change by 10% or more, the initial price is adjusted to the extent necessary to compensate for the change in value of the stock options caused by the capital action.

If Sixt SE distributes dividends or other assets to shareholders in the period between allocation and exercise of a tranche of stock options, the initial price of this tranche must be adjusted by deducting the amount of dividend or distribution attributable to one preference share from the initial price.

If the bond acquired by the participant as a personal investment is redeemed early or if the participant's contract of employment is terminated, the stock options already allocated but not yet exercised and the entitlements to unallocated stock options are generally lost.

The number of stock options under the MSP 2012 changed as follows:

Number of stock options	2021	2020	2019	2018	2017 allocation
Outstanding at the beginning of the financial year	1,999,000	2,151,500	2,281,500	2,425,000	-
Granted during financial year	-	-	-	-	2,490,000
Returned during financial year	-176,000	-152,500	-130,000	-143,500	-65,000
Expired according to the terms and conditions	-1,823,000	-	-	-	-
Outstanding at the end of the financial year	-	1,999,000	2,151,500	2,281,500	2,425,000
Existing contractual obligation for future grant	-	-	-	-	-
Number of stock options	2021	2020	2019	2018
---	---	---	---	---
Outstanding at the beginning of the financial year	2,276,000	2,543,500	2,693,500	-
Granted during financial year	-	-	-	2,703,500
Returned during financial year	-278,500	-267,500	-150,000	-10,000
Outstanding at the end of the financial year	1,997,500	2,276,000	2,543,500	2,693,500
Existing contractual obligation for future grant	-	-	-	-

As at the balance sheet date the following options from tranches granted under the MSP 2012 were outstanding:

2018 allocation	Number of outstanding stock options	Future exercise date	Residual term	Estimated conversion/ Exercise price
Tranche 2018	1,997,500	2022	1.0 years	54.76 EUR

— Sixt SE Annual Report 2021

CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The stock options under the MSP 2012 were measured by means of a Monte Carlo simulation model. Assuming that the price of the stock option granted can be calculated as the discounted future expected value (with regard to the risk-neutral probability), the price development of the underlying (Sixt preference share) is simulated a large number of times and the expected value is determined by calculating the arithmetic mean of the results of the individual simulations.

The method used is based on the random walk of the price performance of Sixt preference shares with a log-normal distribution of the relative price changes. Other assumptions used by the model are: the MSP participants pursue a strategy that is profit-maximising from their perspective, constant dividend yields, drift and volatility, the cap of 5% of earnings before taxes (MSP 2012) is not achieved, no change in the share capital of Sixt SE during the term of the MSP, no change in the current MSP terms and conditions.

The average price over a 60-day period is determined for each path comprising a simulated share price performance for each tranche after the lock-up period expires and is compared with the exercise threshold. If the figure is above the exercise threshold, the related gain on the stock option is discounted from the exercise date to the reporting date in accordance with the yield curve observed.

The expected volatility was estimated on the basis of the historical volatility of the share price. The expected term used in the model was adjusted to reflect the Management Board's best estimate of the impact of non-transferability, exercise restrictions and behaviour such as staff fluctuation.

At the time of granting the parameters used in the simulation were:

Simulation model parameters	2018 allocation	2017 allocation
Risk-free interest rate in % p.a.	-0.01	-0.09
Expected volatility in %	27	27
Expected term until exercise from issue in years	4.0	4.0
Price of preference shares on the issue date in EUR	60.20	53.51

In accordance with IFRS 2, personnel expenses were calculated on the basis of the market conditions at the grant date, and not on the basis of the market conditions at the balance sheet date. In 2021, the Group recognised personnel expenses of EUR 825 thousand (2020: EUR 1,085 thousand) in connection with equity-settled share-based payments. EUR 416 thousand relate to the "2017 allocation" and EUR 409 thousand to the "2018 allocation".

In consideration of currency translation differences, additions to capital reserves have been made accordingly.

5.4 RELATED PARTY DISCLOSURES

The Sixt Group has receivables from and liabilities to various unconsolidated Group companies for the purposes of intercompany settlements and financing. The resulting balances are presented in the items other receivables and other liabilities. The transactions are conducted on arm's length terms. The following provides an overview of significant transactions and account balances arising from such relationships:

Related parties	Services rendered		Services used		Receivables from related companies		Liabilities to related companies
in EUR million	2021	2020	2021	2020	31 Dec. 2021	31 Dec. 2020	31 Dec. 2021	31 Dec. 2020
CV Main 2000 UA	-	-	0.3	0.2	-	-	-	-
Sixt Immobilien Beteiligungen GmbH	1	1	1	1	1	1	0.2	0.2
Sixt Verwaltungs B.V.	1	-	-	-	0.1	1	-	-
TÜV SÜD Car Registration & Services GmbH	0.1	0.1	1.8	2.0	1	1	-	0.4

1 Amount less than EUR 0.1 million

The Supervisory Board member Dr. Daniel Terberger holds a stake in a company, with whom the Group maintains a business relationship covering the delivery of working clothes at arm's length conditions. In the year under review less than EUR 0.1 million were spent (2020: EUR 1.3 million). Furthermore the

Group rented two properties belonging to the Sixt family for its operations in the financial year. The rental expenses amounted to EUR 0.2 million (2020: EUR 0.2 million). Further business relationships to related parties, mainly from rental of vehicles at market conditions exist to a limited extent. For their services as

Sixt SE Annual Report 2021 — 153

CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

members of the Management Board respectively Supervisory Board, Mr. Erich Sixt, Mr. Alexander Sixt and Mr. Konstantin Sixt received remuneration. Further members of the Sixt family received remuneration amounting to EUR 0.6 million (2020: EUR 0.6 million) for their activities in the Group.

The Supervisory Board and Management Board of Sixt SE

Supervisory Board	Membership of supervisory boards and other comparable bodies of business enterprises
Erich Sixt (since 16 June 2021)
Chairman
Grünwald	Chairman of the Supervisory Board of trans-o-flex Express GmbH & Co. KGaA (since 15 September 2021)
Friedrich Joussen (until 16 June 2021)
Chairman
Chairman of the Management Board of TUI AG
Duisburg	Chairman of the Supervisory Board of TUI Deutschland GmbH
Chairman of the Supervisory Board of TUIFly GmbH
Chairman of the Administrative Board of RIUSA II S.A., Spain
Dr. Julian zu Putlitz (since 16 June 2021)
CFO of IFCO Systems Group
Pullach	Member of the Supervisory Board of Allane SE
Dr. Daniel Terberger (since 2012)
Chairman of the Management Board of KATAG AG
Bielefeld	Chairman of the Supervisory Board of Textilhäuser F. Klingenthal GmbH
Member of the Supervisory Board of Gebr. Weiss Holding AG, Österreich
Member of the Supervisory Board of Fussl Modestraße Mayr GmbH, Österreich
Member of the Advisory Board of ECE Group GmbH & Co. KG
Member of the Advisory Board of Eterna Mode Holding GmbH
Member of the Advisory Board of Loden-Frey Verkaufshaus GmbH & Co. KG
Member of the Advisory Board of William Prym Holding GmbH
Ralf Teckentrup (until 16 June 2021)
Deputy Chairman
Chairman of the Board of Managing Directors of Condor Flugdienst GmbH
Kronberg	Member of the Advisory Board of Deutsche Flugsicherung DFS GmbH
Management Board	Portfolio
---	---
Alexander Sixt (Co-CEO since 17 June 2021)	Organisation and strategy
Konstantin Sixt (Co-CEO since 17 June 2021)	Sales
Erich Sixt	Chairman (until 16 June 2021)
Prof. Dr. Kai Andrejewski	Finance (since 1 June 2021)
Jörg Bremer	Finance (until 31 May 2021)
Nico Gabriel	Operations (since 18 January 2021)
Daniel Marasch	Vans & Trucks (1 January - 31 December 2021)
Detlev Pätsch	Operations (until 31 March 2021)

The Management Board members did not hold any further memberships on supervisory boards or other comparable bodies of business enterprises during their service as members of the Management Board of Sixt SE in 2021.

154 — Sixt SE Annual Report 2021

CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Total remuneration of the Supervisory Board and Management Board of Sixt SE

Total remuneration
in EUR thousand	2021	2020
Supervisory Board remuneration	218	200
Management Board remuneration	13,144	10,316
Thereof variable remuneration	6,724	5,314

In financial year 2021, as in the previous year, no stock options have been granted to the members of the Management Board. The total remuneration of the Management Board includes, in the previous year, as a long-term incentive the exercise gain from the exercise of the stock options granted in the amount of EUR 1,400 thousand. In financial year 2021 no stock options were exercised.

Variable remuneration contain remuneration components that will be paid in subsequent years. Remunerations in the amount of EUR 1,926 thousand are conditional upon the achievement of a minimum EBT in financial year 2022.

At the end of the reporting year members of the Supervisory Board were granted none and members of the Management Board were granted 300,000 stock options under the employee equity participation programme MSP 2012, and on the basis of their personal investments (2020: 800,000 stock options). In addition, former members of the Management Board were granted 100,000 stock options under the employee equity participation programme MSP 2012, and on the basis of their personal investments (2020: -) As at balance sheet date all stock options of the MSP 2012 have been issued, therefore there are no further entitlements. Under the employee participation programme SPP no phantom stocks were granted to members of the Supervisory Board and the Management Board as at balance sheet date.

The Group has no pension obligations towards members of the Supervisory Board and Management Board.

Shareholdings

As at 31 December 2021, Erich Sixt Vermögensverwaltung GmbH, Pullach, all shares of which are held directly and indirectly by the Sixt family, held 17,701,822 shares of the ordinary shares of Sixt SE (2020: 17,701,822 ordinary shares). In addition to this Mr. Erich Sixt held unchanged two registered ordinary shares of Sixt SE.

In accordance with article 19 of the European Market Abuse Directive persons performing executive functions and persons closely related to them are legally required to disclose their own transactions with shares or bonds of Sixt SE and their related financial derivatives or other related financial instruments. The reporting requirement applies to all transactions, that are conducted after the total amount of EUR 20,000 within the calendar year was achieved.

The transaction notifications received by Sixt SE during financial year 2021 were duly published and can be retrieved on the website of Sixt SE at ir.sixt.eu under the tab "Investor Relations – Corporate Governance – Managers' Transactions".

5.5 PROPOSAL FOR ALLOCATION OF THE UNAPPROPRIATED PROFIT

Sixt SE reported an unappropriated profit for financial year 2021 in accordance with German commercial law of EUR 453,818 thousand (2020: EUR 378,502 thousand). Subject to the approval by the Supervisory Board, the Management Board proposes utilising this unappropriated profit as follows:

Proposal for allocation of the unappropriated profit
in EUR thousand	2021	2020
Payment of a dividend of EUR 3.70 (2020: no dividend) per ordinary share entitled to a dividend	112,358	-
Payment of a dividend of EUR 3.72 (2020: EUR 0.05) per preference share entitled to a dividend	61,664	829
Carryforward to new account	279,796	377,674

Sixt SE Annual Report 2021 — 155

CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As at 31 December 2021, 30,367,112 ordinary shares entitled to a dividend and 16,576,246 preference shares entitled to a dividend are issued, which would result in a total distribution of EUR 174,022 thousand. This takes due account of the very positive development of both the business and earnings in 2021.

The proposal by the Management Board and the Supervisory Board on the appropriation of the unappropriated profit for the financial year 2020 was resolved unchanged by the Annual General Meeting on 16 June 2021.

5.6 EVENTS SUBSEQUENT TO REPORTING DATE

At the time of the preparation of this report the conflict in the Ukraine escalated to a direct military dispute between Russia and the Ukraine. In both markets Sixt is only present via a franchise partner and General Sales Agents. In Ukraine there is also a subsidiary for software development. There are no significant assets in both of the countries.

Due to the current situation all corporate sales and marketing activities in Russia were stopped and all sanction requirements were fully implemented. Additionally all business relations with state-affiliated companies were suspended. Emergency plans to protect the health of our employees and the operating business in the Ukraine were immediately initiated and carried out.

The direct consequences of the war on the Sixt Group are from today's perspective limited to revenues from Russian and

Ukrainian franchise and brokerage business as well as the loss of few corporate customers and losses in retail business.

However the impact of the conflict on the overall macroeconomic situation is difficult to evaluate. In addition a further deterioration of the vehicle delivery situation could have a significant impact on the Group's results of operations.

No further events of special significance for the net assets, financial position and results of operations of the Group occurred after the end of financial year 2021.

5.7 DECLARATION OF CONFORMITY IN ACCORDANCE WITH SECTION 161 OF THE AKTG

The declaration by the Management Board and the Supervisory Board required by Section 161 of the Aktiengesetz (AktG – German Stock Corporation Act) stating that the recommendations of the Government Commission on the German Corporate Governance Code are complied with and which recommendations have not been applied was issued in the financial year and made permanently accessible to shareholders on the Sixt SE website under ir.sixt.eu in the section "Corporate Governance".

5.8 AUTHORISATION OF THE CONSOLIDATED FINANCIAL STATEMENTS IN ACCORDANCE WITH IAS 10.17

These Consolidated Financial Statements are authorised by the Management Board for submission to the Supervisory Board on 28 March 2022.

Pullach, 28 March 2022

Sixt SE

The Management Board

ALEXANDER SIXT
KONSTANTIN SIXT
PROF. DR. KAI ANDREJEWSKI
NICO GABRIEL

Sixt SE Annual Report 2021

FURTHER INFORMATION

D.1 158 __ RESPONSIBILITY STATEMENT
D.2 159 __ INDEPENDENT AUDITORS' REPORT
D.3 167 __ BALANCE SHEET OF SIXT SE (HGB)
D.4 168 __ INCOME STATEMENT OF SIXT SE (HGB)
D.5 169 __ REMUNERATION REPORT
1. 169 __ Remuneration of the Management Board in financial year 2021
2. 174 __ Remuneration of the Supervisory Board in financial year 2021
3. 175 __ Comparative presentation of Management Board and Supervisory Board remuneration
D.6 177 __ REPORT OF THE INDEPENDENT AUDITOR ON THE AUDIT OF THE REMUNERATION REPORT IN ACCORDANCE WITH SECTION 162 (3) AKTG
D.7 179 __ FINANCIAL CALENDAR

Sixt SE Annual Report 2021 — 157

FURTHER INFORMATION RESPONSIBILITY STATEMENT

D FURTHER INFORMATION

D.1 RESPONSIBILITY STATEMENT

by Sixt SE, Pullach, for financial year 2021

in accordance with Sections 297 (2) sentence 4 and 315 (1) sentence 5 of the HGB (German Commercial Code)

To the best of our knowledge, and in accordance with the applicable reporting principles, the Consolidated Financial Statements give a true and fair view of the net assets, financial position and results of operations of the Group, and the Combined

Management Report 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.

Pullach, 28 March 2022

Sixt SE

The Management Board

ALEXANDER SIXT	KONSTANTIN SIXT	PROF. DR. KAI ANDREJEWSKI	NICO GABRIEL

158 — Sixt SE Annual Report 2021

FURTHER INFORMATION INDEPENDENT AUDITORS' REPORT

The following independent auditors' report ("Bestätigungsvermerk") was issued in accordance with Section 322 of the HGB (German Commercial Code) on the IFRS Financial Statements 2021, which were prepared in German language. The translation of the independent auditor's report ("Bestätigungsvermerk") is as follows:

D.2 INDEPENDENT AUDITORS' REPORT

To Sixt SE, Pullach/Germany

REPORT ON THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS AND OF THE COMBINED MANAGEMENT REPORT

Audit Opinions

We have audited the consolidated financial statements of Sixt SE, Pullach/Germany, and its subsidiaries (the Group) which comprise the consolidated balance sheet as at 31 December 2021, and the consolidated income statement and statement of comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the financial year from 1 January to 31 December 2021, and the notes to the consolidated financial statements, including a summary of significant accounting policies. In addition, we have audited the combined management report for the parent and the group of Sixt SE, Pullach/Germany, for the financial year from 1 January to 31 December 2021. In accordance with the German legal requirements, we have not audited the content of the summarised consolidated non-financial declaration included in the chapter "Summarised non-financial declaration of the Group pursuant to sections 315b and c in conjunction with sections 289b to e of the HGB" of the combined management report nor the content of the corporate governance statement included in the chapter "Corporate governance declaration in accordance with sections 289f and 315d of the HGB" of the combined management report.

In our opinion, on the basis of the knowledge obtained in the audit,

the accompanying consolidated financial statements comply, in all material respects, with the International Financial Reporting Standards (IFRS) as adopted by the EU and the additional requirements of German commercial law pursuant to Section 315e (1) German Commercial Code (HGB) and, in compliance with these requirements, give a true and fair view of the assets, liabilities and financial position of the Group as at 31 December 2021 and of its financial performance for the financial year from 1 January to 31 December 2021, and

the accompanying combined management report as a whole provides an appropriate view of the Group's position. In all material respects, this combined management report is consistent with the consolidated financial statements, complies with German legal requirements and appropriately presents the opportunities and risks of future development. Our audit opinion on the combined management report does not cover the content of the summarised consolidated non-financial declaration referred to above nor the content of the corporate governance statement referred to above.

Pursuant to Section 322 (3) sentence 1 HGB, we declare that our audit has not led to any reservations relating to the legal compliance of the consolidated financial statements and of the combined management report.

Basis for the Audit Opinions

We conducted our audit of the consolidated financial statements and of the combined management report in accordance with Section 317 HGB and the EU Audit Regulation (No. 537/2014; referred to subsequently as "EU Audit Regulation") and in compliance with German Generally Accepted Standards for Financial Statement Audits promulgated by the Institut der Wirtschaftsprüfer (IDW). Our responsibilities under those requirements and principles are further described in the "Auditor's Responsibilities for the Audit of the Consolidated Financial Statements and of the Combined Management Report" section of our auditor's report. We are independent of the group entities in accordance with the requirements of European law and German commercial and professional law, and we have fulfilled our other German professional responsibilities in accordance with these requirements. In addition, in accordance with Article 10 (2) point (f) of the EU Audit Regulation, we declare that we have not provided non-audit services prohibited under Article 5 (1) of the EU Audit Regulation. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions on the consolidated financial statements and on the combined management report.

Sixt SE Annual Report 2021 — 159

Key Audit Matters in the Audit of the Consolidated Financial Statements

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated financial statements for the financial year from 1 January to 31 December 2021. These matters were addressed in the context of our audit of the consolidated financial statements as a whole and in forming our audit opinion thereon; we do not provide a separate audit opinion on these matters.

In the following we present the key audit matters we have determined in the course of our audit:Impairment test of non-financial assetsSubsequent measurement of rental vehicles

Our presentation of these key audit matters has been structured as follows:Description (including reference to corresponding information in the consolidated financial statements)Auditor's response

Impairment test of non-financial assets

In the consolidated financial statements as at 31 December 2021 of Sixt SE, non-financial assets of EUR 3.7 billion are reported. In particular, they are comprised of rental vehicles with a carrying amount of EUR 2,847 million and property, plant and equipment of EUR 551 million that are allocated to the individual national companies of Sixt SE. In addition, intangible assets and goodwill totalling EUR 47 million have been recognised.

Sixt SE examined whether the ongoing disturbances to the travel and mobility sector caused by the global COVID-19 pandemic constitutes an indication of a potential impairment of its non-financial assets. This analysis was carried out in relation to the individual national companies that were identified as cash-generating units. Insofar as an existing indication of impairment is confirmed, the recoverable amount of the respective national company is determined and compared to its carrying amount (impairment test). As market values are generally not available for the individual national companies, the recoverable amount is determined using a discounted cash flow model. Future cash flows are determined based on the operational four-year planning prepared by the executive directors of the national companies and Sixt SE and approved by the supervisory board, which is being adjusted based on assumptions about long-term growth rates. They are discounted using the weighted average cost of capital of the respective national company. As a result of the assessment, no impairment need was identified.

The result of this valuation is to a great extent dependent on the estimates made by the executive directors about the future cash inflows of the respective national company and the discount rate used and, therefore, is subject to considerable uncertainty. Against this background, this matter was of particular significance in the scope of our audit.

The disclosures of the executive directors on impairment are contained in section 3 “Reporting and valuation methods” of the notes to the consolidated financial statements and in sections 4.5 and 4.12 to 4.14 on the respective items of the consolidated income statement and the consolidated balance sheet.

As a preliminary measure, we assessed the appropriateness of the criteria used by the Company for identifying any indication of impairment. We initially obtained an understanding of the control environment, risk assessment as well as the processes and monitoring regarding the work flows and procedures that are connected with the impairment test. As part of our audit of the recoverability of non-financial assets, we used the knowledge and audit results gained in previous years. For the purpose of risk assessment, we obtained, among other things, an understanding of the past adherence to the budget. Furthermore, we reproduced the approach used for testing the recoverability of the assets. In so doing, we evaluated to what extent the approach was influenced by subjectivity, complexity or other inherent risk factors. Particularly, we examined the logic of combinations in the discounted cash flow model and if the calculations concerning the individual national companies have been made accurately. We examined whether the future cash inflows used in the calculations constitute an appropriate basis, particularly by means of comparing them with the four-year planning prepared by the executive directors and approved by the supervisory board and by interviewing the executive directors and/or persons named by them. In addition, we critically assessed the planning taking into account general and specific market expectations.

We addressed the parameters employed in determining the discount rate used and critically assessed, in particular, the growth rates assumed for the period following the detailed planning period. Due to the fact that future cash inflows are also dependent on macroeconomic framework conditions that are beyond the Company's control, we evaluated the additional scenario

FURTHER INFORMATION INDEPENDENT AUDITORS' REPORT

analyses prepared by Sixt SE in order to be able to assess any potential impairment risk arising from changes of material measurement parameters.

Regarding the impairment need determined as a result of the impairment test, we verified that this impairment need was appropriately allocated to the assets of the respective national company and correctly recognised in the expenses of the financial year.

We examined the disclosures of the executive directors in the notes to the consolidated financial statements as to whether the information they provide about estimate uncertainties and judgements in relation to the recoverability analyses is complete and appropriate.

2. Subsequent measurement of rental vehicles

a) In the consolidated financial statements of Sixt SE, rental vehicles totalling EUR 2,847 million are reported; this corresponds to around 63.0% of total assets.

Rental vehicles are carried at cost less depreciation and write-downs taking into account their calculated residual values. For vehicles for which buy-back agreements have been concluded, their residual values are determined by the agreed residual values. If no buy-back values have been agreed, the vehicles' residual values are adapted to the expected market value at the planned disposal date. The assets are written down if the carrying amount which is based on the originally calculated residual value exceeds the amount arising from the projected expected residual value.

We classified the measurement of this quantitatively significant balance sheet item as a key audit matter since the valuation of rental vehicles is based on discretionary estimates and assumptions made by the executive directors with regard to their write-downs to the expected residual value.

The disclosures of the executive directors of the Parent on the measurement of rental vehicles are contained in sections 3 "Reporting and valuation methods" and 4.17 of the notes to the consolidated financial statements.

b) In auditing the appropriateness of the valuation technique, we examined the corresponding organisational and operational structure with regard to appropriateness and effectiveness of the key controls implemented. This relates in particular to the process of taking into account contractually agreed buy-back values or expected residual values for determining depreciation. Furthermore, with regard to recognising write-downs, we reproduced the procedure for determining any such impairment need.

As part of our substantive procedures regarding write-downs, we reproduced the assumptions regarding residual value and disposal risk underlying the determination of write-downs and examined the impairment need calculated on this basis. In so doing, we also compared the executive directors' expectations regarding the market price development with the actual market prices and examined them for plausibility. In addition, we performed an analytical examination of depreciation.

Sixt SE Annual Report 2021 — 161

FURTHER INFORMATION INDEPENDENT AUDITORS' REPORT

Other Information

The executive directors and the supervisory board are responsible for the other information. The other information comprises

the report of the supervisory board,
the summarised consolidated non-financial declaration pursuant to Sections 289b to 289e HGB and 315b and 315c HGB, respectively, included in the chapter "Summarised non-financial declaration of the Group pursuant to sections 315b and c in conjunction with sections 289b to e of the HGB" of the combined management report,
the corporate governance statement included in the chapter "Corporate governance declaration in accordance with sections 289f and 315d of the HGB" of the combined management report,
the executive directors' confirmation regarding the consolidated financial statements and the combined management report pursuant to Section 297 (2) sentence 4 and Section 315 (1) sentence 5 HGB,
the remuneration report in accordance with Section 162 (3) AktG,
all other parts of the annual report,
but not the consolidated financial statements, not the audited content of the combined management report and not our auditor's report thereon.

The supervisory board is responsible for the report of the supervisory board. The executive directors and the supervisory board as well are responsible for the declaration according to Section 161 German Stock Corporation Act (AktG), which is part of the consolidated corporate governance declaration included in the chapter "Corporate governance declaration in accordance with sections 289f and 315d of the HGB" of the combined management report. Apart from that the executive directors are responsible for the other information.

Our audit opinions on the consolidated financial statements and on the combined management report do not cover the other information, and consequently we do not express an audit opinion or any other form of assurance conclusion thereon.

In connection with our audit, our responsibility is to read the other information referred to above and, in so doing, to consider whether the other information

is materially inconsistent with the consolidated financial statements, with the audited content of the combined management report or our knowledge obtained in the audit, or
otherwise appears to be materially misstated.

Responsibilities of the Executive Directors and the Supervisory Board for the Consolidated Financial Statements and the Combined Management Report

The executive directors are responsible for the preparation of the consolidated financial statements that comply, in all material respects, with IFRS as adopted by the EU and the additional requirements of German commercial law pursuant to Section 315e (1) HGB, and that the consolidated financial statements, in compliance with these requirements, give a true and fair view of the assets, liabilities, financial position and financial performance of the Group. In addition, the executive directors are responsible for such internal control as they have determined necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, the executive directors are responsible for assessing the Group's ability to continue as a going concern. They also have the responsibility for disclosing, as applicable, matters related to going concern. In addition, they are responsible for financial reporting based on the going concern basis of accounting unless there is an intention to liquidate the Group or to cease operations, or there is no realistic alternative but to do so.

Furthermore, the executive directors are responsible for the preparation of the combined management report that as a whole provides an appropriate view of the Group's position and is, in all material respects, consistent with the consolidated financial statements, complies with German legal requirements, and appropriately presents the opportunities and risks of future development. In addition, the executive directors are responsible for such arrangements and measures (systems) as they have considered necessary to enable the preparation of a combined management report that is in accordance with the applicable German legal requirements, and to be able to provide sufficient appropriate evidence for the assertions in the combined management report.

162 — Sixt SE Annual Report 2021

FURTHER INFORMATION INDEPENDENT AUDITORS' REPORT

The supervisory board is responsible for overseeing the Group's financial reporting process for the preparation of the consolidated financial statements and of the combined management report.

Auditor's Responsibilities for the Audit of the Consolidated Financial Statements and of the Combined Management Report

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and whether the combined management report as a whole provides an appropriate view of the Group's position and, in all material respects, is consistent with the consolidated financial statements and the knowledge obtained in the audit, complies with the German legal requirements and appropriately presents the opportunities and risks of future development, as well as to issue an auditor's report that includes our audit opinions on the consolidated financial statements and on the combined management report.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Section 317 HGB and the EU Audit Regulation and in compliance with German Generally Accepted Standards for Financial Statement Audits promulgated by the Institut der Wirtschaftsprüfer (IDW) will always detect a material misstatement. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements and this combined management report.

We exercise professional judgement and maintain professional scepticism throughout the audit. We also

identify and assess the risks of material misstatement of the consolidated financial statements and of the combined management report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our audit opinions. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls.
obtain an understanding of internal control relevant to the audit of the consolidated financial statements and of arrangements and measures relevant to the audit of the combined management report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an audit opinion on the effectiveness of these systems.
evaluate the appropriateness of accounting policies used by the executive directors and the reasonableness of estimates made by the executive directors and related disclosures.
conclude on the appropriateness of the executive directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in the auditor's report to the related disclosures in the consolidated financial statements and in the combined management report or, if such disclosures are inadequate, to modify our respective audit opinions. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to be able to continue as a going concern.
evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements present the underlying transactions and events in a manner that the consolidated financial statements give a true and fair view of the assets, liabilities, financial position and financial performance of the Group in compliance with IFRS as adopted by the EU and with the additional requirements of German commercial law pursuant to Section 315e (1) HGB.

Sixt SE Annual Report 2021 — 163

obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express audit opinions on the consolidated financial statements and on the combined management report. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinions.

evaluate the consistency of the combined management report with the consolidated financial statements, its conformity with German law, and the view of the Group's position it provides.

perform audit procedures on the prospective information presented by the executive directors in the combined management report. On the basis of sufficient appropriate audit evidence we evaluate, in particular, the significant assumptions used by the executive directors as a basis for the prospective information, and evaluate the proper derivation of the prospective information from these assumptions. We do not express a separate audit opinion on the prospective information and on the assumptions used as a basis. There is a substantial unavoidable risk that future events will differ materially from the prospective information.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with the relevant independence requirements, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, the related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in the auditor's report unless law or regulation precludes public disclosure about the matter.

OTHER LEGAL AND REGULATORY REQUIREMENTS

Report on the Audit of the Electronic Files of the Consolidated Financial Statements and of the Combined Management Report prepared for Publication pursuant to Section 317 (3a) HGB

Audit Opinion

In accordance with Section 317 (3a) HGB, we have assessed with reasonable assurance whether the electronic files of the consolidated financial statements and of the combined management report (hereafter referred to as “ESEF files”) prepared for publication, contained in the provided file, which has the SHA-256 value 6687bb3516513f8a99da2de8618e5506b580c508dcf3389cf84b6ca4b9fa819f, meet, in all material respects, the requirements concerning the electronic reporting format (“ESEF format”) pursuant to Section 328 (1) HGB. In accordance with the German legal requirements, this audit only covers the transfer of the consolidated financial statements' and the combined management report's information into the ESEF format, and therefore covers neither the information contained in these electronic files nor any other information contained in the file stated above.

In our opinion, the electronic files of the consolidated financial statements and of the combined management report prepared for publication, contained in the provided file, to us meet, in all material respects, the requirements concerning the electronic reporting format pursuant to Section 328 (1) HGB. Beyond this audit opinion and our audit opinions on the accompanying consolidated financial statements and on the accompanying combined management report for the financial year from 1 January to 31 December 2021 contained in the above “Report on the Audit of the Consolidated Financial Statements and of the Combined Management Report”, we do not express any audit opinion on the information contained in these electronic files and on any other information contained in the file stated above.

FURTHER INFORMATION INDEPENDENT AUDITORS' REPORT

Basis for the Audit Opinion

We conducted our audit of the electronic files of the consolidated financial statements and of the combined management report, contained in the provided file, in accordance with Section 317 (3a) HGB and on the basis of the IDW Draft Auditing Standard: Audit of the Electronic Files of the Annual Financial Statements and of the Management Report prepared for Publication pursuant to Section 317 (3a) HGB (IDW AuS 410 (10.2021)). Our responsibilities in this context are further described in the section "Group Auditor's Responsibilities for the Audit of the ESEF Files". Our audit firm has applied the Quality Assurance Standard: Quality Assurance Requirements in Audit Practices (IDW QS 1) promulgated by the Institut der Wirtschaftsprüfer (IDW).

Responsibilities of the Executive Directors and the Supervisory Board for the ESEF Files

The executive directors of the Company are responsible for the preparation of the ESEF files based on the electronic files of the consolidated financial statements and of the combined management report according to Section 328 (1) sentence 4 no. 1 HGB and for the tagging of the consolidated financial statements according to Section 328 (1) sentence 4 no. 2 HGB.

In addition, the executive directors of the Company are responsible for such internal control as they have determined necessary to enable the preparation of ESEF files that are free from material violations against the requirements concerning the electronic reporting format pursuant to Section 328 (1) HGB, whether due to fraud or error.

The supervisory board is responsible for overseeing the process for preparing the ESEF files as part of the financial reporting process.

Group Auditor's Responsibilities for the Audit of the ESEF Files

Our objectives are to obtain reasonable assurance about whether the ESEF files are free from material violations, whether due to fraud or error, against the requirements pursuant to Section 328 (1) HGB. We exercise professional judgement and maintain professional scepticism throughout the audit. We also

identify and assess the risks of material violations against the requirements pursuant to Section 328 (1) HGB, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our audit opinion.
obtain an understanding of internal control relevant to the audit of the ESEF files in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an audit opinion on the effectiveness of these controls.
assess the technical validity of the ESEF files, i.e. whether the provided file containing the ESEF files meets the requirements of the Delegated Regulation (EU) 2019/815 in the version applicable as of the balance sheet date as to the technical specification of this file.
evaluate whether the ESEF files enable a XHTML copy of the audited consolidated financial statements and of the audited combined management report whose content is identical with these documents.
evaluate whether the ESEF files have been tagged using inline XBRL technology (iXBRL) accordance with Articles 4 and 6 of the Delegated Regulation (EU) 2019/815 in the version applicable as of the balance sheet date in a way that enables an appropriate and complete machine-readable XBRL copy of the XHTML copy.

Sixt SE Annual Report 2021 — 165

FURTHER INFORMATION INDEPENDENT AUDITORS' REPORT

Further information pursuant to Article 10 of the EU Audit Regulation

We were elected as group auditor by the annual general meeting on 16 June 2021. We were engaged by the supervisory board on 22 December 2021. We have been the group auditor of Sixt SE, Pullach/Germany, without interruption since the financial year 2005.

We declare that the audit opinions expressed in this auditor's report are consistent with the additional report to the audit committee pursuant to Article 11 of the EU Audit Regulation (long-form audit report).

OTHER MATTER – USE OF THE AUDITOR’S REPORT

Our auditor’s report must always be read together with the audited annual financial statements and the audited management

Munich/Germany, 28 March 2022

Deloitte GmbH
Wirtschaftsprüfungsgesellschaft

report as well as with the audited ESEF documents. The annual financial statements and the management report converted into the ESEF format – including the versions to be published in the Federal Gazette – are merely electronic reproductions of the audited annual financial statements and the audited management report and do not take their place. In particular, the ESEF report and our audit opinion contained therein are to be used solely together with the audited ESEF documents made available in electronic form.

GERMAN PUBLIC AUDITOR RESPONSIBLE FOR THE ENGAGEMENT

The German Public Auditor responsible for the engagement is Klaus Löffler.

| KLAUS LÖFFLER
German Public Auditor | FLORIAN KORTE
German Public Auditor |
| --- | --- |

166 — Sixt SE Annual Report 2021

FURTHER INFORMATION
BALANCE SHEET OF SIXT SE (HGB)

D.3 BALANCE SHEET OF SIXT SE (HGB)

as of 31 December 2021

Assets
in EUR thousand	31 Dec. 2021	31 Dec. 2020
A. Fixed assets
I. Intangible Assets
1. Paid concessions, industrial property rights and similar rights	148	488
II. Equipment
1. Other fixtures, operating and office equipment	1,076	1,570
2. Advance payments and assets under construction	1,089	-
III. Financial assets
1. Shares in affiliated companies	875,218	860,421
	877,530	862,479
B. Current assets
I. Receivables and other assets
1. Trade receivables	2,266	2,019
2. Receivables from affiliated companies	1,752,418	1,861,546
3. Receivables from other investees	12	6
4. Other assets	11,640	4,033
	1,766,336	1,867,604
II. Bank balances	191,545	228,405

C. Prepaid expenses	2,884	2,939
	2,838,296	2,961,427
Equity and Liabilities
---	---	---
in EUR thousand	31 Dec. 2021	31 Dec. 2020
A. Equity
I. Subscribed capital	120,175	120,175
(Conditional Capital: EUR 15,360 thousand; 2019: EUR 15,360 thousand)
II. Capital reserves	203,173	203,173
III. Retained earnings
Other retained earnings	113,538	113,538
IV. Unappropriated profit	453,818	378,502
Thereof retained profits brought forward EUR 377,674 thousand (2020: EUR 253,254 thousand)	890,704	815,389
B. Provisions
1. Provisions for taxes	21,507	8,632
2. Other provisions	22,597	11,649
	44,105	20,282
C. Liabilities
1. Bonds	800,000	800,000
2. Liabilities to banks	748,500	1,083,000
3. Trade payables	3,885	3,552
4. Liabilities to affiliated companies	342,366	227,675
5. Other liabilities	8,736	11,529
	1,903,486	2,125,756
	2,838,296	2,961,427

Off-balance sheet items

Liabilities from guarantees EUR 552,655 thousand (2020: EUR 580,916 thousand)

Sixt SE Annual Report 2021 — 167

FURTHER INFORMATION

INCOME STATEMENT OF SIXT SE (HGB)

D.4 INCOME STATEMENT OF SIXT SE (HGB)

for the year ended 31 December 2021

in EUR thousand		2021	2020
1. Revenue		95,496	30,538
2. Other operating income		151,773	241,835
3. Fleet expenses		6,203	280
4. Personnel expenses
a) Wages and salaries	87,736		76,221
b) Social security contributions	11,146		9,967
		98,882	86,188
5. Amortisation of intangible assets and depreciation of equipment		1,119	1,289
6. Other operating expenses		141,147	95,763
7. Income from investments		95,416	43,811
8. Income from profit transfer agreements		5,446	-
9. Other interest and similar income		41,384	31,630
10. Depreciation of financial assets		18,630	25
11. Cost of loss absorption		17	1,600
12. Interest and similar expenses		30,555	28,808
13. Taxes on income		16,818	8,612
14. Result after taxes = Net income		76,144	125,248
15. Retained profits brought forward		377,674	253,254
16. Unappropriated profit		453,818	378,502

168 — Sixt SE Annual Report 2021

D.5 REMUNERATION REPORT

The Remuneration Report provides information on the remuneration granted and owed to each individual current or former member of the Management Board and Supervisory Board of Sixt SE (“company”) in financial year 2021. The Report complies with the requirements of Section 162 of the German Stock Corporation Act (“AktG”) and the relevant accounting standards.

The remuneration system for the members of the Management Board was resolved by the company's Supervisory Board on 23 April 2021 and approved by the Annual General Meeting on 16 June 2021 by way of a resolution on agenda item 7 (Section 120a (1) AktG). It applies to all Management Board service contracts concluded or extended after the Supervisory Board resolution. The service contracts of all current Management Board members are in line with the resolved remuneration system or have been revised accordingly.

The Supervisory Board members were remunerated in accordance with the Articles of Association and the resolution adopted by the Annual General Meeting of Sixt SE on 16 June 2021 pursuant to Section 113 (3) sentences 1 and 2 AktG under agenda item 8. The resolution regulated the future remuneration of the Supervisory Board members outside the Articles of Association. The previous provisions in Article 15 of the company's Articles of Association were retained without change and only supplemented by a provision according to which the Chairman of the Supervisory Board, in addition to his (unchanged) monetary remuneration, is provided with a company car as a benefit in kind that can also be used privately.

Detailed information on the remuneration systems of the Management Board and Supervisory Board can be found on the company's website at www.ir.sixt.eu under “Corporate Governance/Resolutions on the remuneration system.” Due to commercial rounding, some of the figures in this report might not add up exactly to the totals shown.

1. REMUNERATION OF THE MANAGEMENT BOARD IN FINANCIAL YEAR 2021

The company pursues the goal of intensifying the growth course of Sixt Group, further advancing the focus on integrated and digitally based mobility services and expanding its positioning as the leading international provider of mobility services. In order to achieve these goals, the remuneration of the Management Board of Sixt SE is based on the following principles: A transparent, comprehensible remuneration based on the economic success of the company as a whole contributes to the overall strategic action of the Management Board and the sustainable growth of Sixt Group. The range of responsibilities and the performance of each Management Board member are key factors in determining his or her total remuneration. Multi-year assessment bases and caps for variable remuneration components that take effect every financial year promote long-term growth and avoid incentives to take disproportionate risks. One component of the variable performance-based remuneration elements is long-term share based and thus aimed at having a strong share culture as well as an alignment of the interests of shareholders, management and other stakeholders.

The total remuneration granted and owed to the members of the Management Board of Sixt SE in financial year 2021 pursuant to Section 162 (1) sentence 1 AktG is shown in individualised form in the tables below. Accordingly, the tables contain all amounts that actually accrued to the individual members of the Management Board in financial year 2021 (granted remuneration) and all remuneration that is legally due but has not yet accrued (remuneration owed). The bonus for 2021 is considered granted remuneration, since the relevant performance was rendered by 31 December 2021 and the remuneration was thus earned in principle.

Thus, the bonus for 2021 is stated as part of the total remuneration, although the payment is only made after the end of the financial year (see further explanations on the bonus below). This ensures that a connection is formed between the performance rendered and the remuneration in the reporting period and increases transparency.

FURTHER INFORMATION

REMUNERATION REPORT

Current members of the Management Board	Alexander Sixt	Konstantin Sixt	Prof. Dr. Kai Andrejewski	Nico Gabriel
	COO until 16 June 2021	CSO until 16 June 2021	CFO since 1 June 2021	COO since 18 Jan. 2021
	Co-Chairman of the Management Board since 17 June 2021	Co-Chairman of the Management Board since 17 June 2021
in EUR thousand	2021	2021	2021	2021
Basic remuneration	1,377	1,377	379	478
Fringe benefits¹	38	26	11	20
Total fixed remuneration components	1,415	1,403	390	498
Relative share of fixed remuneration components in % of the total remuneration	42.8%	42.6%	41.6%	35.8%
Bonus 2021 (payment to be distributed in 2022 and 2023)	1,890	1,890	547	895
Relative share of the bonus 2021 in % of the total remuneration	57.2%	57.4%	58.4%	64.3%
Multi-year variable remuneration²	-	-	-	-
Total remuneration	3,305	3,293	937	1,393
Members of the Management Board who left the Board in financial year 2021	Erich Sixt	Detlev Pätsch	Jörg Bremer	Daniel Marasch
---	---	---	---	---
	CEO until 16 June 2021	COO until 31 March 2021	CFO until 31 May 2021	CVTO until 31 Dec. 2021
in EUR thousand	2021	2021	2021	2021
Basic remuneration	1,107	148	300	900
Fringe benefits¹	25	15	11	33
Total fixed remuneration components	1,132	163	311	933
Relative share of fixed remuneration components in % of the total remuneration	60.7%	37.2%	34.4%	92.6%
Bonus 2021 (to be paid out in 2022)	733	175	594	n/a
Relative share of the bonus for 2021 in % of the total remuneration	39.3%	40.0%	65.6%	0.0%
Multi-year variable remuneration²	-	-	-	-
Other³	-	100	-	75
Relative share of other components in % of total remuneration	-	23.0%	-	7.4%
Total remuneration	1,865	438	905	1,008

1 The fringe benefits included are shown in the section "Non-performance-related remuneration". Contributions for D&O insurance are not included.
2 No payment from the Share Performance Programme resolved in financial year 2021 was made in 2021. The details of the Share Performance Programme are presented below. There was also no allocation or payment in 2021 from long-term remuneration components granted to individual members of the Management Board in previous years (see the general information on the Matching Stock Programme 2012 for members of the Management Board and managers in the Notes to the Consolidated Financial Statements).
3 In the case of Mr. Pätsch, this includes one-off payments to compensate for holiday entitlements from previous years. In the case of Mr. Marasch, this relates to the severance payment described above, which was paid out in January 2022 but was considered as granted remuneration.

Sixt SE Annual Report 2021

FURTHER INFORMATION REMUNERATION REPORT

Non-performance-related remuneration

The basic salary shown here was paid out in twelve equal monthly instalments. The amount of the basic salary is based on the range of tasks, departmental responsibilities and experience of the respective Management Board member.

The fringe benefits granted include the provision of a maximum of two company cars for business and private use, the possibility to use a driver service, the use of a company mobile phone also for private purposes and – if the respective conditions are met – the granting of personal protection. Furthermore, the members of the Management Board receive subsidies for health insurance and nursing care insurance contributions (limited to half of the general and uniform contribution rate of the statutory health insurance fund). Mr. Pätsch also received an allowance for social security. Furthermore, an accident insurance policy and a legal expense insurance policy exist for the benefit of the members of the Management Board.

Furthermore, the company maintains a financial loss liability Group insurance policy for members of the executive bodies and certain employees of Sixt Group. This insurance is taken out or renewed annually. The insurance covers the personal liability risk in the event that a claim is made against these individuals for financial losses in the course of their work. The policy for financial year 2021 includes a deductible for the members of the Management Board that complies with the requirements of the German Stock Corporation Act.

Performance-related remuneration

In addition to their non-performance-related basic remuneration and contractual fringe benefits, the members of the Management Board also receive performance-related remuneration. The performance-related remuneration is comprised of two components, a bonus (STI) and a share-based Share Performance Programme (LTI).

Bonus (STI)

The origin and amount of the bonus entitlement of the members of the Management Board for 2021 are dependent on the earnings from ordinary business activities before taxes (EBT) as a performance indicator reported in the Consolidated Financial Statements of Sixt SE for financial year 2021. This remuneration component contributes to the sustainable earnings-oriented growth of Sixt Group and to strategic and operational management decisions oriented towards the success of the company as a whole due to its calculation clarity and transparency and due to the fact that it is fundamentally earnings-related and oriented towards the company as a whole. The degree to which targets have been achieved can be seen transparently on the basis of the actual key figures determined each year and listed in the Consolidated Financial Statements of Sixt SE for the financial year in question.

For each financial year of the contractual term of a Management Board service agreement ("base year"), it is determined whether and, if so, in what amount an entitlement to a bonus has arisen. If the contract term begins or ends during the year, the bonus for the respective base year is granted pro rata temporis. The accrual of the bonus entitlement is dependent on the EBT reaching a certain minimum target in the respective base year. If the agreed minimum target is not reached, the Management Board member concerned is not entitled to a bonus for the respective base year. If the minimum target is exceeded, the amount of the bonus claim is generally dependent on the extent to which the EBT value actually achieved in the respective base year exceeded the bonus-relevant minimum target. What minimum target exceedance leads to what bonus amount is stipulated in the respective Management Board employment contracts for their entire term. The respective Management Board member receives an individually determined payment amount for each full million euros of EBT above the agreed minimum target. If EBT exceeds a certain additional level (EBT additional threshold), the payment value agreed for each full million euros of EBT increases. The amount of the bonus entitlement is limited in absolute terms to a fixed maximum amount (cap) per base year.

The EBT minimum target, the EBT additional threshold and the achievable maximum amount (cap) were agreed individually for each of the members of the Management Board and are shown in the following tables:

Sixt SE Annual Report 2021 — 171

FURTHER INFORMATION

REMUNERATION REPORT

Current members of the Management Board	Alexander Sixt	Alexander Sixt	Konstantin Sixt	Konstantin Sixt	Prof. Dr. Kai Andrejewski	Nico Gabriel
	COO until 16 June 2021	Co-Chairman of the Management Board since 17 June 2021	CSO until 16 June 2021	Co-Chairman of the Management Board since 17 June 2021	CFO since 1 June 2021	COO since 18 Jan. 2021
	2021 (until 16 June)	2021 (since 17 June)	2021 (until 16 June)	2021 (since 17 June)	2021	2021
EBT minimum target (in EUR million)	50	100	50	100	200	200
EBT additional threshold (in EUR million)	100	400	100	400	300	300
Maximum target for the bonus per year (cap) (in EUR thousand)	1,500	2,600	1,500	2,600	2,000	2,000
Former members of the Management Board	Erich Sixt	Detlev Pätsch	Jörg Bremer	Daniel Marasch1
---	---	---	---	---
	CEO until 16 June 2021	COO until 31 March 2021	CFO until 31 May 2021	CVTO until 31 Dec. 2021
	2021	2021	2021	2021
EBT minimum target (in EUR million)	250	50	150	-
EBT additional threshold (in EUR million)	-	150	250	-
Maximum target for the bonus per year (cap) (in EUR thousand)	1,600	700	1,400	-

1 Mr. Marasch left the company on 31 December 2021. No entitlement to a bonus has arisen.

Insofar as the contracts already comply with the new remuneration system, the bonus entitlement in 2021 is divided into two tranches. The first tranche, amounting to $49.9\%$ of the bonus entitlement, is due for payment at the end of the 2022 Annual General Meeting. The second tranche, amounting to $50.1\%$ of the bonus entitlement, is dependent on EBT being greater than EUR 0 in the financial year following the base year. If this is achieved, the respective second tranche of the bonus entitlement becomes due at the end of the Annual General Meeting that resolves on the appropriation of profits for the financial year following the base year. If this is not achieved, the entitlement to the second tranche lapses without compensation. Thus, the bonus entitlement for the base year is reduced to $49.9\%$ of the original, i.e. initially accrued, bonus entitlement. In the case of old contracts, payment is not made in two tranches, but rather in one tranche in 2022. The contracts of the two Co-Chairmen of the Management

Board, Mr. Alexander Sixt and Mr. Konstantin Sixt, have complied with the new remuneration system since 17 June 2021. For the bonus attributable to the period before, payment is to be rendered in full in 2022.

In 2021 – the best business year in the company's history² – EBT amounted to EUR 442.2 million, so that the agreed EBT minimum targets and the EBT additional threshold were reached. Thus, the following amounts from the bonus for financial year 2021 will be due for payment in financial years 2022 and 2023, whereby the payment in 2023 for the current members of the Management Board depends on the achievement of the EBT minimum target applicable for financial year 2022:

2 The 2018 EBT of EUR 534.6 million included the one-off effect that resulted from the sale of the share in DriveNow, the adjusted EBT amounted to EUR 336.7 million.

Sixt SE Annual Report 2021

FURTHER INFORMATION REMUNERATION REPORT

For transparency reasons, the entire bonus figure was reported as part of total remuneration for 2021.

Share-based Virtual Share Performance Programme

In financial year 2021, the Group had an employee participation programme (Matching Stock Programme – MSP) that was initiated in 2012 (MSP 2012). No new tranches of share options were allotted to members of the Management Board and employees and no preference shares were issued in financial year 2021.

The current members of the Management Board are participants in the Share Performance Programme (SPP) that was introduced in 2021. The SPP has a long-term orientation and is share-based. The achievement of a certain EBT as a performance indicator is authoritative. If a certain minimum EBT is achieved in a financial year, the members of the Management Board are allotted a certain number of virtual ordinary shares the following year. The number of virtual ordinary shares currently results from a certain fraction of the EBT of the last completed financial year, but not exceeding an agreed cap, divided by the weighted closing price of the ordinary share in Xetra trading on the Frankfurt Stock Exchange during the last ten trading days before the date of allotment of the virtual shares. The allocation date is 1 June of each calendar year or, if this is a Saturday, Sunday or public holiday, the following working day.

Only if the member of the Management Board remains in office four years after the allotment will he or she receive a cash

payment from the SPP. The amount of the cash payment is equal to the product of the number of virtual ordinary shares allotted for the relevant tranche and the weighted closing price of the ordinary shares for a specified period prior to the date of payment, subject to a maximum of an agreed payout cap. In the event of extraordinary upward or downward developments (such as significant changes in accounting regulations), the Supervisory Board may, at its reasonable discretion, change the formula for calculating the allotment of virtual shares. A recommendation of the German Corporate Governance Code is thus also implemented.

The share-based long-term performance-related remuneration component also has a high degree of calculation clarity and transparency. As it is linked to the long-term development of the share price, it reflects the interests of the shareholders on the one hand and is intended to ensure a sustainable company strategy on the other.

The minimum EBT target agreed for the respective SPP was achieved in all cases, so that the current members of the Management Board will be allotted virtual ordinary shares on 1 June 2022 in accordance with the equivalent value shown in the table below. The exact number depends in particular on the weighted closing price of the ordinary shares during the last ten days of trading before the date of allotment and cannot be determined at present. The following table also sets out the minimum EBT, the maximum grant amount (cap) and the payout cap (in the case of a payout after four years).

Sixt SE Annual Report 2021

FURTHER INFORMATION

REMUNERATION REPORT

Current members of the Management Board	Alexander Sixt	Konstantin Sixt	Prof. Dr. Kai Andrejewski	Nico Gabriel
	COO until 16 June 2021	CSO until 16 June 2021	CFO since 1 June 2021	COO since 18 Jan. 2021
	Co-Chairman of the Management Board since 17 June 2021	Co-Chairman of the Management Board since 17 June 2021
in EUR thousand	2021	2021	2021	2021
EBT minimum target (in EUR million)	100	100	100	100
Countervalue as the basis for calculating the virtual number of shares on the allocation date (1 June 2022) (in EUR thousand)	1,106	1,106	331	664
Maximum allotment amount (CAP) (in EUR thousand)	1,500	1,500	500	800
Payout cap	1,500	1,500	500	800

Total remuneration and maximum remuneration

The total remuneration of the members of the company's Management Board for financial year 2021 amounted to a total of EUR 13.1 million. As part of the remuneration system, maximum remuneration for the entire Management Board was set at EUR 23 million and target remuneration for the entire Management Board at EUR 15.6 million. In order to compare the maximum remuneration with the total remuneration, the remuneration system requires that any inflows from share-based remuneration components be allocated to the financial year in which the tranche was allocated. Neither an allocation of virtual shares nor a payment from share-based remuneration components took place in financial year 2021, therefore no other allocation is necessary for the purposes of the comparison. The maximum remuneration for the entire Management Board of EUR 23 million in financial year 2021 was therefore complied with.

Clawback of variable remuneration components/third party benefits

No variable remuneration components were reclaimed from members of the Management Board in financial year 2021. No member of the Management Board was promised benefits by a third party with regard to his or her activity as a member of the Management Board or was granted such in the financial year.

Benefits in connection with the departure of members of the Management Board

Mr. Jörg Bremer left the Management Board by mutual agreement on 31 May 2021 and not at the end of his term of office on 31 October 2021. His employment contract was terminated effective 30 June 2021. Mr. Daniel Marasch resigned by

mutual agreement as of 31 December 2021. In connection with his resignation, Mr. Marasch received a severance payment of EUR 75,000 as of 31 February 2022. Any bonus claims on the part of Mr. Marasch were settled with this amount.

2. REMUNERATION OF THE SUPERVISORY BOARD IN FINANCIAL YEAR 2021

The remuneration of the members of the Supervisory Board is, in accordance with the predominant market practice at listed companies in Germany, structured as purely fixed remuneration without any variable components. The Management Board and Supervisory Board are of the opinion that a purely fixed remuneration of the Supervisory Board members is best suited to strengthen the independence of the Supervisory Board and to take the advisory and supervisory function of the Supervisory Board into account, which is to be fulfilled independently of the company's success.

The members of the Supervisory Board receive fixed remuneration of EUR 50,000 for each full financial year of membership of the Supervisory Board. The Chairman receives twice this amount (EUR 100,000). If the office is not occupied for a full financial year, the remuneration specified above is to be granted pro rata temporis according to the duration of the membership in the Supervisory Board. The remuneration is due for payment at the end of each financial year. Based on the resolution of the Annual General Meeting of 16 June 2021, the company also provides the Chairman of the Supervisory Board with a luxury class company car that may also be used privately. Furthermore, a pecuniary damage liability insurance

Sixt SE Annual Report 2021

FURTHER INFORMATION
REMUNERATION REPORT

policy (D&O) exists for the members of the Supervisory Board. No deductible has been agreed.

Based on the remuneration system presented here, the total remuneration granted and owed to the former and active members of the Supervisory Board in financial year 2021 is shown in the table below. The table thus includes all amounts actually received by the individual members of the

Supervisory Board in financial year 2021 (granted remuneration) and all remuneration legally due but not yet received (remuneration owed). The fixed remuneration for 2021 is regarded as remuneration granted, as the relevant service was rendered by 31 December 2021 and the remuneration was thus earned in principle. The actual payment was made at the beginning of financial year 2022.

Current and former members of the Supervisory Board

in EUR thousand	Fixed remuneration in 2021	Fringe benefits in 2021
Friedrich Joussen (Chairman of the Supervisory Board until 16 June 2021)	46	-
Erich Sixt (Chairman of the Supervisory Board since 16 June 2021)	54	18^{1}
Dr. Terberger (member of the Supervisory Board)	50	-
Ralf Teckentrup (member of the Supervisory Board until 16 June 2021)	23	-
Dr. Julian zu Putlitz (member of the Supervisory Board since 16 June 2021)	27	-

1 Based on the resolution of the Annual General Meeting 2021 of 16 June 2021, the Chairman of the Supervisory Board receives a company car that is also for private use.

3. COMPARATIVE PRESENTATION OF MANAGEMENT BOARD AND SUPERVISORY BOARD REMUNERATION

Pursuant to Section 162 (1) sentence 2 no. 2 AktG, the following table shows the development of Sixt's earnings, the annual change in the remuneration of the members of the Management Board and the Supervisory Board, and the development of the average remuneration of the employees on a full-time equivalent basis. The presentation makes use of the transitional provision of Section 26j (2) of the Introductory Act to the German Stock Corporation Act and is based on a comparison of financial year 2020 with financial year 2021. For the members of the Management Board and the Supervisory Board, the comparison is based on the remuneration granted and

owed in the respective financial year within the meaning of Section 162 (1) sentence 1 AktG. The change shown for the members of the Management Board is due in particular to the effects of the coronavirus pandemic on financial year 2020, the waiver of bonus and salary payments in financial year 2020, and the changes in responsibilities on the Management Board. The workforce of Sixt SE and the companies affiliated with Sixt SE that have their registered office in Germany is taken as a basis for presenting the change in the average remuneration of the employees. Payments for wages and salaries, as well as fringe benefits, employer contributions to social security and the short-term variable remuneration components attributable to the respective financial year were taken into account.

Sixt SE Annual Report 2021 — 175

FURTHER INFORMATION

REMUNERATION REPORT

Comparison of Management Board and Supervisory Board remuneration with regard to the total remuneration	Change in %
	from 2020 to 2021
Current members of the Management Board
Alexander Sixt	294%
Konstantin Sixt	294%
Prof. Dr. Kai Andrejewski (CFO since 1 June 2021)	-
Nico Gabriel (COO since 18 Jan. 2021)	-
Former members of the Management Board
Daniel Marasch (CVTO until 31 Dec. 2021)	-
Erich Sixt (CEO until 16 June 2021)	391%
Jörg Bremer (CFO until 30 June 2021)	96%
Detlev Pätsch (COO until 31 March 2021)	26%
Current members of the Supervisory Board
Erich Sixt (Chairman of the Supervisory Board since 16 June 2021)	-
Dr. Julian zu Putlitz (member of the Supervisory Board since 16 June 2021)	-
Dr. Daniel Terberger (member of the Supervisory Board)	0%
Former members of the Supervisory Board
Friedrich Joussen (Chairman of the Supervisory Board until 16 June 2021)	0%
Ralf Teckentrup (member of the Supervisory Board until 16 June 2021)	0%
Earnings development of the company
Net income of Sixt SE pursuant to Section 275 (3) No. 16 HGB	-29%1
Result from ordinary activities of the Sixt Group (EBT) according to IFRS	n/a%2
Result of Sixt Group according to IFRS	15,828%3
Average employee remuneration	11%

1 The net profit for the year 2020 based on statuary accounts included a one-off effect from the sale of Sixt Leasing in the amount of EUR 129,430 thousand.
2 The Group's EBT according to IFRS was negative (EUR -81,546 thousand) in 2020 due to the effects of the coronavirus pandemic and amounted to EUR 442,16 thousand in 2021. Because of the negative result in 2020, it makes no sense to report the change as a percentage.
3 The result of Sixt Group according to IFRS was EUR 1,966 thousand in 2020 and EUR 313,150 thousand in 2021.

Pullach, 29 March 2022

The Management Board

The Supervisory Board

Sixt SE Annual Report 2021

FURTHER INFORMATION
REPORT ON THE AUDIT OF THE REMUNERATION REPORT

D.6 REPORT OF THE INDEPENDENT AUDITOR ON THE AUDIT OF THE REMUNERATION REPORT IN ACCORDANCE WITH SECTION 162 (3) AKTG

To Sixt SE, Pullach/Germany

Audit Opinion

We conducted a formal audit of the remuneration report of Sixt SE, Pullach/Germany, for the financial year from 1 January to 31 December 2021, to assess whether the disclosures required under Section 162 (1) and (2) German Stock Corporation Act (AktG) have been made in the remuneration report. In accordance with Section 162 (3) AktG, we did not audit the content of the remuneration report.

In our opinion, the disclosures required under Section 162 (1) and (2) AktG have been made, in all material respects, in the accompanying remuneration report. Our audit opinion does not cover the content of the remuneration report.

Basis for the Audit Opinion

We conducted our audit of the remuneration report in accordance with Section 162 (3) AktG and in compliance with the IDW Auditing Standard: Audit of the Remuneration Report pursuant to Section 162 (3) AktG (IDW AuS 870 (08.2021)). Our responsibilities under those requirements and this standard are further described in the "Auditor's Responsibilities" section of our auditor's report. Our audit firm has applied the requirements of the IDW Quality Assurance Standard: Quality Assurance Requirements in Audit Practices (IDW QS 1). We have fulfilled our professional responsibilities in accordance with the German Public Auditor Act (WPO) and the Professional Charter for German

Public Auditors and German Sworn Auditors (BS WP/vBP) including the requirements on independence.

Responsibilities of the Executive Board and the Supervisory Board

The executive board and the supervisory board are responsible for the preparation of the remuneration report, including the related disclosures, that complies with the requirements of Section 162 AktG. In addition, they are responsible for such internal control as they consider necessary to enable the preparation of a remuneration report, including the related disclosures, that is free from material misstatement, whether due to fraud or error.

Auditor's Responsibilities

Our objectives are to obtain reasonable assurance about whether the disclosures required under Section 162 (1) and (2) AktG have been made in the remuneration report, in all material respects, and to express an audit opinion thereon as part of an auditor's report.

We planned and conducted our audit so as to be able to determine whether the remuneration report is formally complete by comparing the disclosures made in the remuneration report with the disclosures required under Section 162 (1) and (2) AktG. In accordance with Section 162 (3) AktG, we did neither audit whether the contents of these disclosures are correct, nor whether the contents of individual disclosures are complete, nor whether the remuneration report has been reasonably presented.

Sixt SE Annual Report 2021 — 177

FURTHER INFORMATION
REPORT ON THE AUDIT OF THE REMUNERATION REPORT

Handling of possible misrepresentations

In connection with our audit, our responsibility is to read the remuneration report taking into account our knowledge obtained in the financial statement audit while remaining attentive to any signs of misrepresentations in the remuneration report regarding the correctness of the disclosures' contents, the completeness of individual disclosures' contents or the reasonable presentation of the remuneration report.

If, based on the work we have performed, we conclude that there is such a misrepresentation, we are required to report that fact. We have nothing to report in this regard.

Munich/Germany, 29 March 2022

Deloitte GmbH
Wirtschaftsprüfungsgesellschaft

| KLAUS LÖFFLER
German Public Auditor | FLORIAN KORTE
German Public Auditor |
| --- | --- |

178 — Sixt SE Annual Report 2021

FURTHER INFORMATION
FINANCIAL CALENDAR

D.7 FINANCIAL CALENDAR

Financial calendar of Sixt SE
Annual press conference for financial year 2021	2 March 2022
Publication of Annual Report 2021	30 March 2022
Analyst conference in Frankfurt am Main	5 April 2022
Publication of quarterly statement as of 31 March 2022	12 May 2022
Annual General Meeting for financial year 2021 (Virtual Annual General Meeting)	25 May 2022
Publication of the half-year financial report as of 30 June 2022	10 August 2022
Publication of quarterly statement as of 30 September 2022	9 November 2022

Dates and event locations subject to change

Sixt SE
Zugspitzstraße 1
82049 Pullach
Germany
Phone +49 (0) 89/7 44 44-0
Fax +49 (0) 89/7 44 44-8 6666

Contact Investor Relations
Phone +49 (0) 89/7 44 44-5104
Fax +49 (0) 89/7 44 44-8 5104
[email protected]

http://ir.sixt.eu
http://about.sixt.com

Reservations
+49 (0) 89/66 060 060

Production
Inhouse with firesys

Concept, project management, text
GFD – Gesellschaft für Finanzkommunikation mbH,
Frankfurt am Main, Germany

Design
Ligaturas GmbH – Reportdesign, Hamburg, Germany

Sixt SE Annual Report 2021 — 179

AI assistant

Sixt SE — Annual Report 2021

397_10-k_2022-03-29_0ab8edec-e3b4-4689-9d56-a81b977b6b70.pdf

INNOVATOR

THE SIXT GROUP IN FIGURES

CONTENT

RECORD YEAR

PIONEER

55 We are shaping the future of global mobility

The Sixt leadership claim is based on our unique selling points:

THE RIGHT MOBILITY OFFER FOR EVERY CUSTOMER WISH AT ANY TIME WORLDWIDE:

SixT rent

SixT share

SixT ride

SixT +

SixT truck

THE SECRET BEHIND OUR SUCCESS

WE ARE PIONEERS OF THE MOBILITY OF THE FUTURE

MOBILITY PLATFORM

Sixt is stronger and more successful than ever before!

Mr. Sixt, how would you sum up financial year 2021?

How do you explain this success?

What were your personal highlights?

What does the future of mobility and, accordingly, that of Sixt look like?

442 million euros

UNIQUE POSITION

RESPONSIBILITY

Our platform ONE and the SIXT app are the door openers for future growth for Vans & Trucks, too.

But weren't you severely slowed down here last year by the material bottlenecks and thus the shortage of premium vehicles?

WILL TO GROW

Our high balance sheet quality is the cornerstone for financing the transformation to the sustainable mobility of the future.

AMBITIONS

Expect Better!

2022

We want to continue to be the benchmark that the other mobility companies take as a role model!

REPORT OF THE SUPERVISORY BOARD

General

ERICH SIXT

Key issues in 2021

Report on the work of the committees

Individualised disclosure of meeting attendance in financial year 2021

Conflicts of interest

Corporate Governance

Audit of the 2021 Annual Financial Statements and Consolidated Financial Statements

Personnel changes

Thanks to the management and all employees

The Supervisory Board

SIXT SHARE

Equity markets bullish in 2021 despite ongoing coronavirus pandemic

Sixt shares post significant outperformance in 2021

Shareholder structure virtually unchanged

Dividend policy

Dialogue with the capital market intensified

D

COMBINED MANAGEMENT REPORT

B.1 028 PRINCIPLES OF THE GROUP

B.2 034 ECONOMIC REPORT

B COMBINED MANAGEMENT REPORT

B.1 PRINCIPLES OF THE GROUP

1. BUSINESS MODEL OF THE GROUP

1.1 GROUP STRUCTURE AND MANAGEMENT

1.2 GROUP ACTIVITIES AND RANGE OF SERVICES

Operating Business

Market Position and Positioning

Segment Germany

Segment Europe

Segment North America

Source

2.2 RANGE OF SERVICES

3. SIGNIFICANT EXTERNAL INFLUENCING FACTORS

4. MANAGEMENT OF THE COMPANY

5. RESEARCH AND DEVELOPMENT

B.2 ECONOMIC REPORT

1. GENERAL ECONOMIC CONDITIONS

Sources

2. OVERVIEW OF THE GROUP'S BUSINESS PERFORMANCE AND COMPARISON WITH THE PREVIOUS YEAR'S FORECAST

3. SIGNIFICANT DEVELOPMENTS AND MEASURES IN THE REPORTING YEAR

Consistent internationalisation and growth strategy

SIXTAINABILITY

New sales initiatives in the area of business customers

Sixt SE Annual Report 2021