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Sixt Leasing SE: Operating business development in the first nine months of 2020 in line with expectations

·11-min read

DGAP-News: Sixt Leasing SE / Key word(s): 9 Month figures
11.11.2020 / 08:30
The issuer is solely responsible for the content of this announcement.

Sixt Leasing SE: Operating business development in the first nine months of 2020 in line with expectations

Pullach, 11 November 2020 - Sixt Leasing SE, a leading provider in online direct sales of new vehicles in Germany as well as specialist in the management and full-service leasing of large fleets, has overall developed in line with expectations in the first nine months of 2020 based on the earnings forecast published on 21 October 2020. With a slight decrease in the Group's contract portfolio in the period from the end of December 2019 to the end of September 2020, consolidated operating revenue also declined year-on-year. Consolidated earnings before taxes (EBT) were very significantly below the previous year's level. In the third quarter, the business development was particularly affected by the weaker-than-expected recovery of the overall economic situation. The Managing Board confirms the reduced forecast for 2020.

Business development in 9M 2020
In the first nine months of 2020, the expansion of the digital product and service portfolio in particular was further advanced. In the Online Retail business field, Sixt Leasing launched a sales cooperation with PAYBACK via its online platform sixt-neuwagen.de to market a Kia Stonic "VISION" to private customers. In addition, autohaus24.de was honored with the consumer award "Germany's Best Online Portals 2020" in the category "New Car Portals" from the news channel n-tv and the German Institute for Service Quality, and received the rating "High Recommendation" in the category "Car Leasing: Online Providers" in the FOCUS-MONEY study "Recommended by Customers".

In the Fleet Management business unit, the smartphone app "The Companion" for fleet customers was further developed and, among other things, upgraded with the digital payment function "Shell Payment@Pump". Furthermore, two proven industry experts, Mr. Christian Braumiller and Mr. Michael Poglitsch, were won as new Managing Directors of Sixt Mobility Consulting GmbH. In the Fleet Leasing business field, Sixt Leasing expanded its cooperation with BSH Hausgeräte GmbH in the field of e-mobility.

The contract portfolio in Online Retail fell by 9.9 per cent to 40,000 contracts in the period from the end of December 2019 to the end of September 2020, particularly burdened by a reduced number of new orders due to the economic impact of the COVID-19 pandemic and further vehicle returns from the 1&1 campaign conducted in the 2017 financial year. The contract portfolio in Fleet Leasing declined by 3.7 per cent to 38,900 contracts. In both business fields, business performance during the third quarter did not improve as planned, which is due in particular to the weaker-than-expected recovery in the overall economic situation as well as the ongoing COVID-19 situation. In Fleet Management, the contract portfolio increased by 3.0 per cent to 53,000 contracts in the first nine months of 2020.

Overall, the Group's contract portfolio in Germany and abroad (excluding franchise and cooperation partners) decreased by 3.2 per cent to 131,900 contracts in the period from the end of December to the end of September. Compared to 30 September 2019, the Group contract portfolio recorded an increase of 3.7 per cent.

Consolidated revenue in the first three quarters of 2020 decreased by 10.7 per cent to EUR 565.3 million compared to the same period in the previous year. Operating revenue, which does not include the proceeds from vehicle sales, decreased in the same period by 8.6 per cent to EUR 319.9 million. The "lockdown" in the second quarter of 2020 in the wake of the COVID-19 pandemic had a major impact on the decline in operating revenue, which led, among other things, to a significant reduction in vehicle usage and thus to a drop in usage-related revenue, such as income from fuel revenues. Furthermore in the third quarter of 2020, after the lockdown in the second quarter of 2020, the increase in vehicle usage in particluar did not occur as expected. Sales revenue from the sale of leasing returns and marketing of customer vehicles in Fleet Management declined in the first three quarters by 13.3 per cent to EUR 245.4 million. This decrease was due to a very strong first quarter of the previous year, with very high sales of leasing returns in the Online Retail business field, as well as restrictions on stationary car sales resulting from the COVID-19 pandemic during the first half of 2020.

Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) decreased in first three quarters of 2020 by 7.6 per cent to EUR 158.6 million compared to the same period in the previous year. Consolidated earnings before taxes (EBT) saw a decline of 76.0 per cent to EUR 5.2 million due to various special effects. The operating return on revenue (EBT/operating revenue) thus amounted to 1.6 per cent (9M 2019: 6.2 per cent). Consolidated profit decreased by 78.7 per cent to EUR 3.4 million compared to the same period in the previous year.

The lower EBT is in line with the adjusted expectations from 20 July 2020 and results, among others, from the general volume effect in sale of lease returns described above, temporary sales support measures, higher marketing expenses at the beginning of the year, transaction-related costs in connection with the closing of the voluntary public takeover offer of Hyundai Capital Bank Europe GmbH (HCBE) in July 2020 as well as a need for additional risk provisioning in the mid single-digit million euro range as part of the regular review of the residual values of the leasing fleet in the first half of 2020. EBT adjusted for one-time and extraordinary effects amounted to EUR 15.1 million in the first three quarters of 2020.

Michael Ruhl, CEO of Sixt Leasing SE: "The challenging economic conditions do not prevent us from continuing to implement our strategy consistently and, in particular, from pushing ahead with the digitization of our product and service portfolio. Our new major shareholder, Hyundai Capital Bank Europe, will support us in this."

In November, Sixt Leasing SE participates in Germany's largest discount campaign with its "Black Leasing Friday", offering private and corporate customers popular new vehicles at especially attractive rates on its online platform sixt-neuwagen.de. Besides, the company plans the introduction of a completely digital order process on sixt-neuwagen.de starting from the 2021 financial year. Beyond that, the business model of Sixt Leasing SE will be extended by used car leasing.

Outlook
As the Managing Board of Sixt Leasing SE announced in its ad-hoc release on 21 October 2020, the expectation for the 2020 financial year - as communicated on 20 March 2020 - presuming a slight year-on-year increase in the Group's contract portfolio and of consolidated operating revenue at approximately the same level as in the previous year can probably not be realized. This is due to a weaker-than-expected business development in the third quarter of 2020 and the prospect of a continuing or even worsening COVID-19 situation in the fourth quarter of 2020. For the current financial year, the Managing Board expects that both the Group contract portfolio and its consolidated operating revenue will probably be significantly below the corresponding figures of last year.

In addition, the Managing Board confirms its earnings forecast, as adjusted on 20 July 2020, that the originally communicated earnings forecast for the 2020 financial year cannot be realized as expected. This is mainly due to the effects of additional risk provisioning and one-off transaction-related costs, which are already incurred in earnings, and other transaction-related costs to be recognized in the fourth quarter.

The Managing Board of Sixt Leasing SE is of the opinion that the strategic partnership with the new major shareholder, HCBE, puts the Sixt Leasing Group in a position to utilise new growth potential together in the future. Furthermore, the Managing Board hopes that the integration of Sixt Leasing into the two international and financially strong Groups of Santander and Hyundai also offers the opportunity to further optimise the company's financing structure.

The Group's Quarterly Statement as of 30 September 2020 can be downloaded from https://ir.sixt-leasing.com/interim-reports.

---

About Sixt Leasing:

Sixt Leasing SE based in Pullach near Munich is a leading provider in online direct sales of new vehicles in Germany as well as specialist in management and full-service leasing of large fleets. With tailor-made solutions, the company enables the longer-term mobility of its private and corporate customers.

Private and commercial customers use the online platforms sixt-neuwagen.de and autohaus24.de to lease new vehicles affordably. Corporate customers benefit from the cost-saving leasing of their vehicle fleet and from efficient fleet management.

Sixt Leasing SE (WKN: A0DPRE / ISIN: DE000A0DPRE6) has been listed in the Regulated Market of the Frankfurt Stock Exchange (Prime Standard) since 7 May 2015. In fiscal year 2019, the Group generated consolidated revenue of EUR 824 million.

www.sixt-leasing.com


Contact:

Sixt Leasing SE
Investor Relations
+49 89 74444 4518
ir@sixt-leasing.com


The Sixt Leasing Group in 9M 2020 at glance1

 

1 Rounding differences possible
2 Ratio of EBT to operating revenue


11.11.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de

 

 

 

 

Revenue development
in EUR million

9M
2020

9M
2019

Change
in %

    Operating revenue

319.9

350.0

-8.6

    Sales revenue

245.4

283.0

-13.3

Consolidated revenue

565.3

633.0

-10.7

    Thereof Leasing business unit

485.3

555.3

-12.6

        Thereof leasing revenue (finance rate)

163.2

167.7

-2.7

        Thereof other revenue from leasing business

119.5

142.9

-16.3

        Thereof sales revenue

202.6

244.8

-17.2

    Thereof Fleet Management business unit

79.9

77.7

2.9

        Thereof fleet management revenue

37.2

39.4

-5.7

        Thereof sales revenue

42.8

38.2

11.9

 

 

 

 

Earnings development
in EUR million

9M
2020

9M
2019

Change
in %

Fleet expenses and cost of lease assets

359.4

418.9

-14.2

Personnel expenses

31.6

31.3

1.0

Net other operating income/expense

-15.6

-11.1

-40.1

Earnings before interest, taxes, depreciation and amortisation (EBITDA)

158.6

171.6

-7.6

Depreciation and amortisation expense

145.1

141.1

2.9

Net finance costs

-8.4

-9.0

6.9

Earnings before taxes (EBT)

5.2

21.5

-76.0

    Thereof Leasing business unit

3.2

18.6

-82.9

    Thereof Fleet Management business unit

2.0

2.9

-31.8

Operating return on revenue (in %)2
 

1.6
 

6.2
 

-4.5 points

Income tax expense

1.7

5.4

-67.9

Consolidated profit

3.4

16.1

-78.7

Earnings per share (in EUR)

0.17

0.78

-

 

 

 

 

Contract portfolio
 

30 Sep 2020

31 Dec 2019

Change
in %

Group contract portfolio

131,900

136,200

-3.2

    Thereof Online Retail business field

40,000

44,300

-9.9

    Thereof Fleet Leasing business field

38,900

40,400

-3.7

    Thereof Fleet Management business unit

53,000

51,500

3.0

 

 

 

 

Balance sheet figures
in EUR million

30 Sep 2020

31 Dec 2019

Change
in %

Total assets

1,349.7

1,328.9

1.6

Lease assets

1,091.8

1,119.7

-2.5

Financial liabilities

989.9

948.2

4.4

Equity

214.0

229.2

-6.6

Equity ratio (in %)
 

15.9
 

17.2
 

-1.3 points

 

 

 

 

Cash Flow
in EUR million

9M
2020

9M
2019

Change
in %

Gross Cash flow

146.1

150.6

-3.0

Investments in lease assets

313.8

294.6

6.5

 

 

 

 

 

 

 

 

Revenue development
in EUR million

9M
2020

9M
2019

Change
in %

    Operating revenue

319.9

350.0

-8.6

    Sales revenue

245.4

283.0

-13.3

Consolidated revenue

565.3

633.0

-10.7

    Thereof Leasing business unit

485.3

555.3

-12.6

        Thereof leasing revenue (finance rate)

163.2

167.7

-2.7

        Thereof other revenue from leasing business

119.5

142.9

-16.3

        Thereof sales revenue

202.6

244.8

-17.2

    Thereof Fleet Management business unit

79.9

77.7

2.9

        Thereof fleet management revenue

37.2

39.4

-5.7

        Thereof sales revenue

42.8

38.2

11.9

 

 

 

 

Earnings development
in EUR million

9M
2020

9M
2019

Change
in %

Fleet expenses and cost of lease assets

359.4

418.9

-14.2

Personnel expenses

31.6

31.3

1.0

Net other operating income/expense

-15.6

-11.1

-40.1

Earnings before interest, taxes, depreciation and amortisation (EBITDA)

158.6

171.6

-7.6

Depreciation and amortisation expense

145.1

141.1

2.9

Net finance costs

-8.4

-9.0

6.9

Earnings before taxes (EBT)

5.2

21.5

-76.0

    Thereof Leasing business unit

3.2

18.6

-82.9

    Thereof Fleet Management business unit

2.0

2.9

-31.8

Operating return on revenue (in %)2
 

1.6
 

6.2
 

-4.5 points

Income tax expense

1.7

5.4

-67.9

Consolidated profit

3.4

16.1

-78.7

Earnings per share (in EUR)

0.17

0.78

-

 

 

 

 

Contract portfolio
 

30 Sep 2020

31 Dec 2019

Change
in %

Group contract portfolio

131,900

136,200

-3.2

    Thereof Online Retail business field

40,000

44,300

-9.9

    Thereof Fleet Leasing business field

38,900

40,400

-3.7

    Thereof Fleet Management business unit

53,000

51,500

3.0

 

 

 

 

Balance sheet figures
in EUR million

30 Sep 2020

31 Dec 2019

Change
in %

Total assets

1,349.7

1,328.9

1.6

Lease assets

1,091.8

1,119.7

-2.5

Financial liabilities

989.9

948.2

4.4

Equity

214.0

229.2

-6.6

Equity ratio (in %)
 

15.9
 

17.2
 

-1.3 points

 

 

 

 

Cash Flow
in EUR million

9M
2020

9M
2019

Change
in %

Gross Cash flow

146.1

150.6

-3.0

Investments in lease assets

313.8

294.6

6.5

 

 

 

 

Language:

English

Company:

Sixt Leasing SE

Zugspitzstraße 1

82049 Pullach

Germany

Phone:

+49 (0)89 744 44 - 4518

Fax:

+49 (0)89 - 744 44 - 8 5169

E-mail:

ir@sixt-leasing.com

Internet:

http://ir.sixt-leasing.de

ISIN:

DE000A0DPRE6, DE000A2DADR6, DE000A2LQKV2

WKN:

A0DPRE

Listed:

Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart, Tradegate Exchange; Luxembourg Stock Exchange

EQS News ID:

1147100


 

End of News

DGAP News Service

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