DGAP-News: Sixt SE: SIXT confirms expectations for continued business development in 2020 at its Annual General Meeting, but points to considerable uncertainties due to COVID-19
DGAP-News: Sixt SE
/ Key word(s): AGM/EGM
Sixt SE: SIXT confirms expectations for continued business development in 2020 at its Annual General Meeting, but points to considerable uncertainties due to COVID-19
24.06.2020 / 16:39
The issuer is solely responsible for the content of this announcement.
SIXT confirms expectations for continued business development in 2020 at its Annual General Meeting, but points to considerable uncertainties due to COVID-19
- SIXT remains cautiously optimistic for the full year 2020 despite dramatic declines in the first and particularly second quarter as a result of the global COVID-19 pandemic
- CEO Erich Sixt: "So far, our business is developing as planned. The third quarter, which is usually the strongest quarter in terms of sales over the course of the year, will be a crucial factor for us, as it is currently subject to considerable uncertainty in view of the still uncertain travel habits of Europeans this summer and the further development of the global pandemic."
- The international mobility provider is reacting to changes in customer demand both during and after the corona crisis by launching a broad scale product offensive
Pullach, June 24, 2020 - At today's Annual General Meeting of Sixt SE that was held virtually this year for the first time ever, the Managing Board confirmed its expectations for the further course of business in 2020. "Despite dramatic losses in the first and particularly second quarter, which will be the worst in our company's history, so far our business has developed in line with the assumptions we made in March," CEO Erich Sixt reported. At the same time, he pointed out the major uncertainties associated with the COVID-19 pandemic: "The third quarter, which is usually the strongest quarter in terms of sales over the course of the year, will be a crucial factor for us, as it is currently subject to considerable uncertainty."
For example, the question arises as to how strongly the travel habits of Europeans will develop over the summer. In the current situation, in particular, many vacationers are waiting to learn about the situation at their holiday destination and are only booking their rental days at extremely short notice. On the other hand, the decisive factor will be how cautious travelers will be with regard to the still omnipresent COVID-19 risks. "A second wave or even travel behavior that deviates significantly from our assumptions would have a corresponding impact on our planning for the second half of the year," Erich Sixt explained.
Positive signals from easing and cancelled travel warnings
The CEO of Sixt SE is cautiously optimistic that the current easing of restrictions and cancellation of travel warnings are showing initial positive effects. For instance, SIXT is experiencing again an increase in bookings in European holiday destinations and in its domestic American airport business. "It remains to be seen whether this snapshot will develop into a sustainable upward trend," Erich Sixt noted. According to its current plans, the company assumes that demand will normalise again step by step in the second half of the year and return to normal in 2021. "We are well aware that reliable assumptions regarding the actual course of fiscal year 2020 are subject to considerable uncertainty due to the current circumstances," Erich Sixt added. Based on this premise, the Managing Board continues to expect a sharp decline in consolidated operating revenue for the full year 2020 compared to the previous year (excluding the discontinued Leasing Business Unit) and consolidated EBT to be clearly positive, but very strongly below the previous year's level (excluding the positive earnings effect from the sale of the stake in Sixt Leasing).
Review of an eventful first half of 2020
Alexander Sixt, member of the Board and Chief Strategy Officer, informed the shareholders about the developments of an eventful first half-year. "After the record year 2019, SIXT started into 2020 at high speed. We continued to grow in the first two months of the year, even exceeding our expectations." Then, however, the international mobility services provider was hit hard by the global COVID-19 pandemic, to which the company responded immediately by implementing a comprehensive action plan. "Besides setting up a task force to protect our employees, customers and partners, we took early and determined action to reduce fleet, personnel and material costs and thus secure and expand our liquidity." For the year as a whole, the company will save more than EUR 150 million in material and personnel costs alone - not including the reduction in fleet costs.
Product offensive due to changing mobility needs
Konstantin Sixt, Chief Sales Officer of Sixt SE, made it clear that the crisis also represents an opportunity: "The last few weeks have not only fundamentally changed our country in many ways, but also the need for mobility. Many people prefer to be in a vehicle of their own that they feel safe inside and would also like to be able to travel comfortably and independently in their own car in the aftermath of the corona crisis."
At the same time, in view of the uncertain economic situation, many people are reluctant to make larger investments, buying a car, for example. SIXT reacted immediately to this change in customer demand by launching a new product offensive:
- The mobility platform SIXT ONE comprising the current product ranges SIXT rent, SIXT share and SIXT ride is being extended to include the new product SIXT+. This is a flexible car subscription that can be terminated on a monthly basis and offers excellent value for money - and huge market potential. "While there are currently only around 20,000 car subscription contracts in Germany, studies show a market potential of 500,000 to one million contracts over the next 10 years. These future prospects make us very optimistic," emphasised Chief Sales Officer Konstantin Sixt.
- The SIXT share car sharing service also recently made the leap abroad and is now available in three Dutch cities - including a 100% electric fleet for the first time. In addition, the car sharing fleet in Germany has been expanded by more than 1,000 vehicles since the beginning of the corona crisis to meet the increased demand for flexible mobility solutions for private and business customers.
With a view to Sixt+ and the launch of SIXT share in the Netherlands, Erich Sixt also expressly emphasised once again at the end of his speech that digitalization and internationalization "will remain key components of our strategy. For us, SIXT never stands still, SIXT is always on the move and SIXT always thinks ahead. This characteristic is a crucial part of our DNA. This is why we also consider the current crisis to be a great opportunity from which we will emerge even stronger."
Strong majorities in the passing of resolutions
The shareholders at the Annual General Meeting, present with around 62 % of the total share capital or around 75 % of the ordinary share capital, approved all items on the agenda by large majorities. Among the resolutions passed, they renewed the authorizations of the Managing Board to acquire own shares, to issue convertible bonds and/or bonds with warrants and for authorized capital, each until June 23, 2025. The term of office of all members of the Supervisory Board of Sixt SE was extended. Mr. Friedrich Joussen was delegated for a further term of office, Mr. Ralf Teckentrup and Dr. Daniel Terberger were elected by an overwhelming majority of the Annual General Meeting. In the subsequent Supervisory Board meeting, Mr. Joussen was elected Chairman of the Supervisory Board and Mr. Teckentrup Deputy Chairman of the Supervisory Board.
SIXT SE with its registered office in Pullach near Munich, is a leading international provider of high-quality mobility services. With its products SIXT rent, SIXT share, SIXT ride and SIXT+ the company offers a uniquely integrated mobility service across the fields of vehicle rental, car sharing, chauffeur services and car subscribtions. The products can be booked through one single app, which also integrates the services of its renowned mobility partners. SIXT has a presence in around 110 countries around the globe. The company is characterized by consistent customer orientation, a lived culture of innovation with strong technological expertise, the high share of premium vehicles in its fleet and an attractive price-performance ratio. The Sixt Group generated revenue of EUR 3.31 billion in 2019 and ranks as one of the most profitable mobility companies worldwide. SIXT SE is the parent company of the Group and has been listed on the Frankfurt stock exchange since 1986 (ISIN ordinary share: DE0007231326, ISIN preference share: DE0007231334). https://about.sixt.de
For further information:
Julia Hoffstaedter / Stefanie Seidlitz
Sixt Central Press Office
Phone: +49 - (0)89 - 74444 6700
Mail: [email protected]
24.06.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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