16 0 2 t r po l Re Annua The Sixt secret of success. Annual Report 2016 THE SIXT GROUP IN FIGURES in EUR million 2016 2015 Change 2016 on 2014 2015 in % Revenue 2,413 2,179 10.7 1,796 Thereof in Germany 1,444 1,364 5.8 1,197 Thereof abroad 969 815 18.9 599 Thereof operating1 2,124 1,939 9.5 1,645 Thereof rental revenue 1,534 1,377 11.4 1,120 Thereof leasing revenue 219 211 3.7 193 Earnings before interest and taxes (EBIT) 256 222 15.3 199 Earnings before taxes (EBT) 218 185 17.9 157 Consolidated profit 157 128 22.2 110 Net income per share (basic) Ordinary share (in EUR) 3.00 2.39 25.5 2.28 Preference share (in EUR) 3.02 2.41 25.3 2.30 Total assets 4,029 3,660 10.1 2,818 Lease assets 1,021 958 6.6 902 Rental vehicles 1,957 1,763 11.0 1,262 Equity 1,080 1,059 2.0 742 Equity ratio (in %) 26.8 28.9 -2.1 Points 26.3 Non-current financial liabilities 1,370 921 48.9 1,131 Current financial liabilities 762 909 -16.2 289 Dividend per share Ordinary share (in EUR) 1.652 1.50 10.0 1.20 Preference share (in EUR) 1.672 1.52 9.9 1.22 Total dividend, net 77.72 71.5 8.7 58.0 Number of employees3 6,212 5,120 21.3 4,308 Number of locations worldwide (31 Dec.)4 2,200 2,153 2.2 2,177 Thereof in Germany 509 508 0.2 483 1 Revenue from rental and leasing business, excluding revenue from the sale of used vehicles 2 Proposal by the management 3 Annual average 4 Including franchise countries CONTENT A TO OUR SHAREHOLDERS 4 A.1 Letter to our shareholders 4 A.2 Report of the Supervisory Board 7 A.3 Sixt shares 10 A.4 Corporate governance report 14 B MANAGEMENT REPORT ON THE GROUP'S AND THE COMPANY'S SITUATION 22 B.1 Group fundamentals 22 B.2 Business report 26 B.3 Human resources report 44 B.4 Disclosures in accordance with sections 289 (4) and 315 (4) of the HGB 46 B.5 Events subsequent to reporting date 50 B.6 Report on outlook 51 B.7 Report on risks and opportunities 54 B.8 Dependent company report 64 B.9 Corporate governance declaration in accordance with sections 289a and 315 (5) of the HGB 64 B.10 Additional information for Sixt SE pursuant to HGB 64 C CONSOLIDATED FINANCIAL STATEMENTS 68 C.1 Consolidated income statement and statement of comprehensive income 68 C.2 Consolidated balance sheet 69 C.3 Consolidated cash flow statement 70 C.4 Consolidated statement of changes in equity 71 C.5 Notes to the consolidated financial statements 72 D FURTHER INFORMATION 128 D.1 Responsibility statement 128 D.2 Independent auditors’ report 129 D.3 Balance sheet of Sixt SE (HGB) 130 D.4 Income statement of Sixt SE (HGB) 131 D.5 Financial calendar 132 Sixt SE Annual Report 2016 \\ Content 1 SIXT – FEEL THE MOTION Mobility is a key component of daily life, both in a business as and allows to generate significant cost savings by at the same well as private context. It allows corporations and private indi- time having comfortable processes. viduals to reach their destinations flexibly and swiftly and make the most of their opportunities. At the same time mobility is The Sixt brand is represented in over 100 countries worldwide subject to a constant change. In times of digital networking and continually expands its presence. The company maintains customers are looking for more than just a car. They want alliances with renowned addresses in the hotel industry, well- holistic services and a wide selection of vehicles fitting their known airlines and numerous prominent service providers in needs. the tourism sector. The focal point of all activities though is always to generate the best-possible benefit for the customers Sixt has become synonymous for premium mobility and is a and to offer an internationally uniform quality level. byword for innovation leadership in the industry. The Company, founded in 1912, utilises state-of-the-art technology to continu- Through its Leasing Business Unit Sixt offers comprehensive ally enhance its services and adapt it to its customers' require- services both to business clients for fleet leasing and fleet ments. Thereby Sixt creates bespoke mobility solutions for management as well as to private and commercial customers commercial and corporate customers as well as private travel- through its business field Online Retail. Due to its many years lers worldwide. A vital basis for its long-term business success of experience in managing large vehicle fleets Sixt Leasing can is Sixt's unique corporate culture which always puts the cus- optimise fleets over the long-term and independent of the tomer centre state, offering him time and again innovations and manufacturer and thus cut total cost of ownership. Private and premium products at attractive conditions to win him over and commercial leasing customers benefit from a comfortable, thrill him with the whole range of offered products. transparent and cost-advantageous offer. In its Vehicle Rental Business Unit Sixt offers its customers a Sixt SE's long-term strategy is geared towards a continued wide range of solutions for different needs. These include expansion of its national and international presence, develop- premium carsharing services, the classic vehicle rent, exclu- ing product innovations through state-of-the-art technologies, sive chauffeur and transfer services as well as convenient remaining focused on strong earnings and a sustained in- long-term rentals. In addition, frequent travellers benefit from a crease in its enterprise value for the benefit of the shareholders. European mobility concept that can cover all vehicle demands WWW.SIXT.COM IR.SIXT.EU 2 Sixt SE Annual Report 2016 \\ Feel the motion • Titel/Objekt: Geschäftsbericht 2017 • Kunde: Sixt • Produkt: Trennerseite • 4C + 1SF HKS7 • 4C + 1SF • 210 x 297 mm x 297 • 210 • • DTP: Thomas -1144 • Jung Matt v. • 31006/18/17005/02 210x297_Trennseiten_Geschaeftsbericht_2016_EN.indd 2 WE TOWANT EXCEED THEM. – TO FULFILLEXPECTATIONS WANT WE DON’T can spread through courage, creativity, a clear visionandthewilltobeunique. aclear creativity, can spreadthrough courage, We believe in our product. And in the power of excitement – excitement thatexcitement we – Andinthepower ofexcitement believein our product. We 06.04.17 14:38 A \\ TO OUR SHAREHOLDERS A.1 \\ LETTER TO OUR SHAREHOLDERS Dear shareholders, In 2016 Sixt saw another record year generating ERICH SIXT EUR 218.3 million earnings before taxes (EBT) which is the highest amount in the Company's history. Consolidated reve- \\ Chairman of the Managing nues of EUR 2,123.7 million showed another significant in- Board of Sixt SE crease compared to the previous year's figure. Business \\ Born 1944 performance of the last year clearly exceeded our initial expec- \\ Joined Sixt in 1969 tations. It clearly demonstrates that Sixt is strategically very \\ Responsible for IT/EDP, well positioned and one of the most profitable mobility services strategic human resources providers worldwide. management, marketing, public relations, international As already in the preceding years, the main growth driver franchise proved to be the ongoing successful international expansion of our Vehicle Rental Business Unit. Rental revenues abroad DETLEV PÄTSCH performed highly gratifying and their gain on the previous year was substantially higher than the growth of the mobility mar- \\ Chief Operating Officer kets as such. Some 53% of consolidated rental revenues are \\ Born 1951 generated outside of Germany compared to 32% when we \\ Joined Sixt in 1986 started our operations in the USA in 2011. In Western Europe \\ Responsible for we managed to gain additional market shares and increase our customer service, opera- brand awareness, also thanks to our typical advertising cam- tions, purchase and sale of paigns, which cause a stir and convey our brand's values very vehicles, maintenance and credibly. In classic vacation countries such as France and repair, quality management, Spain we furthermore benefitted from rerouted tourist flows that claims settlement are being diverted from the Mediterranean crisis regions. We also continue our success story in the USA, the world's biggest vehicle rental market and for Sixt the biggest single With a share of 20% of electric cars in the fleet, DriveNow is market after Germany. We not only managed to follow up on already today one of the key electric mobility fleet providers in the strong double-digit percentage growth in revenues of the Europe. previous years, but, in some months, we also run our opera- tions profitable for the first time. For 2017 our US subsidiary The Leasing Business Unit with its Sixt Leasing SE subsidiary plans to generate a positive full-year earnings contribution. that was listed on the stock exchange in 2015 also recorded a This will be in line with our principle of investing in new markets successful fiscal year. By the end of the year its number of whilst accepting the corresponding up-front investments, but contracts under management increased to a total of 113,600. never losing sight of our profitability goal. This gain was driven by the strong growth of its Online Retail business field, which offers online leasing solutions for private The premium car sharing service DriveNow launched opera- and commercial customers through the platform sixt- tions in Brussels and Milan last year and thus drove forward its neuwagen.de. With the acquisition of autohaus24 GmbH, one international expansion in European metropolitan regions.