Sixt Aktiengesellschaft - Interim Report as of June 30th, 2005

1. Summary

Significant growth in revenue and earnings in first half year
Consolidated earnings before taxes up 38.8%
Consolidated operating revenue up 17.6%
Full-year earnings forecast confirmed, revenue to rise almost 10%

The Sixt Group recorded substantial growth in revenue and earnings in the first half of 2005. The rapid performance in the first three months continued into the second quarter. Consolidated earnings before taxes (EBT) for the first six months rose by 38.8% to EUR 29.1 million. Consolidated operating revenue for the same period was 17.6% higher at EUR 522.2 million. For 2005 as a whole, the Managing Board anticipates that the positive trend will continue. The earnings forecast that it revised upwards in July has been confirmed, and a more precise figure has been given for the revenue forecast, which had also been lifted in July.

2. Report on the Position of the Sixt Group

2.1 General developments in the Group

Consolidated revenue for the first half of 2005 amounted to EUR 1.23 billion, 4.3% above the figure for the prior-year period (H1 2004: EUR 1.18 billion). EUR 215.5 million of total consolidated revenue was generated abroad, up 13.8% on the same period of 2004 (EUR 189.4 million). Consolidated revenue for Q2 rose slightly by 1.1% to EUR 664.4 million (Q2 2004: EUR 657.4 million).

Operating revenue from rental and leasing activities - the best measure of the Sixt's performance - amounted to EUR 522.2 million for the first six months, an increase of 17.6% (H1 2004: EUR 444.2 million). The rate of growth in revenue accelerated from 14.4% in the first quarter to 20.4% between April and June, for a total of EUR 282.7 million for Q2. Operating revenue generated abroad in the first half grew by 9.9% from EUR 75.9 million to EUR 83.4 million.

The rapid growth in operating revenue is mainly attributable to the Vehicle Rental Business Unit in Germany, which clearly outperformed the market as a whole, but also to progress made with expansion into major international markets. For example, the Business Unit successfully won major new leading-name customers, who already contributed to revenue for the first time in the period under review. In addition, business relationships with numerous existing customers were extended.

Revenue from the vehicle rental business rose by 21.4% to EUR 372.0 million in the period from January to June 2005 (H1 2004: EUR 306.3 million). Rental revenue amounted to EUR 202.6 million in the second quarter, as against EUR 166.4 million in the prior-year period, a rise of 21.7%. Leasing revenue for the half-year increased by 8.9% from EUR 137.9 million to EUR 150.2 million. EUR 80.1 million of this figure related to the second quarter, an improvement of 17.3% over last year (Q2 2004: EUR 68.4 million). Other revenue amounted to EUR 1.3 million (H1 2004: EUR 1.6 million).

Revenue from sales of used rental and lease vehicles - most of which are secured by way of fixed buy-back agreements with dealers or manufacturers - amounted to EUR 709.8 million in the first six months. This represents a drop of 3.6% compared to the same period in the previous year (EUR 736.6 million). Revenue from sales for the second quarter was 9.6% lower than last year, falling from EUR 421.9 million to EUR 381.2 million. This was the result of the recently increased use of industry-standard asset-backed financing arrangements, in which the vehicles are owned by an external company. As a result, Sixt no longer receives the revenue from the sale of the vehicles.

The Group's principal earnings indicator, consolidated earnings before taxes (EBT), rose 38.8% from EUR 20.9 million to EUR 29.1 million in the first six months, significantly outstripping the substantial growth in operating revenue. The main contributing factors to this were the continuing tight control of overall costs and strict adherence to the policy of avoiding business with inadequate margins. In the second quarter, earnings before taxes of EUR 22.1 million were generated, up 17.2% on the prior-year period (EUR 18.8 million).

Both operating Business Units, Vehicle Rental and Leasing, recorded an increase in earnings in the first half of the year. The contribution made by international activities to consolidated EBT also improved significantly to EUR 3.6 million (H1 2004: EUR 1.7 million).
The "Other" segment recorded EBT of EUR 2.0 million for the first six months (prior-year period: EUR -0.1 million), resulting in particular from e-commerce business and financial income.

2.2 Vehicle Rental Business Unit

The main operating highlights in the Vehicle Rental Business Unit during the period under review were:

The wide-ranging measures to strengthen sales activities introduced in the second half of 2004 were continued, producing positive results. The second quarter repeated Sixt's success of the first three months in winning new leading-name customers and expanding business relationship with a range of existing clients. Significant growth in revenue was also achieved in major foreign markets such as France.
The second quarter saw the continued expansion of Sixt's worldwide franchise network. The Group extended its activities to the Asian continent for the first time with the launch of a franchise partner in Thailand. An agreement with a franchise partner in Saudi Arabia strengthens the Group's presence in the Middle East.
Sixt's existing close network of partners was strengthened further thanks to a cooperation agreement with the German cruise operator Transocean Tours.
New products such as Sixt Holiday Cars continued to make encouraging progress.

The Vehicle Rental Business Unit increased rental revenue for the first six months of 2005 by 21.4% to EUR 372.0 million, against EUR 306.3 million for the prior-year period. Revenue for the second quarter grew by 21.7% to EUR 202.6 million compared with EUR 166.4 million for Q2 2004.

Sixt's revenue in Germany jumped 25.7% to EUR 299.4 million in the first half of the year (H1 2004: EUR 238.1 million), clearly outperforming the vehicle rental market as a whole. This was mainly the result of Sixt's intensified sales activities in particular, as well as of a general pick-up in demand for mobility services. Growth in foreign rental revenue in the first half year rose by 6.4% to EUR 72.6 million.

Revenue from vehicles sales for the first half was down 3.4% on the prior-year period at EUR 559.2 million (H1 2004: EUR 578.8 million), due to Sixt's increased use of asset-backed financing for its rental fleet. Revenue for the Business Unit as a whole for the first six months therefore amounted to EUR 931.2 million, compared with EUR 885.1 million for the same period last year, a rise of 5.2%.

The Vehicle Rental Business Unit increased its EBT for the first half year by 33.1% from EUR 15.3 million to EUR 20.4 million, significantly outstripping the rate of growth in revenue. In the second quarter, EBT increased from EUR 15.3 million to EUR 17.3 million, an improvement of 13.3% over the prior-year period.

In response to higher demand, Sixt increased the Group's average number of rental vehicles across Europe to around 47,100, 10% above the figure for the same period last year (42,700). The number of rental offices worldwide (own offices and franchisees) rose again to 1,411 as at 30 June 2005, compared with 1,379 as at 30 June 2004 and 1,395 at the close of 2004.

2.3 Leasing Business Unit

The main operating highlights in the Leasing Business Unit during the period under review were:

Sixt Leasing increased the number of its own contracts in Europe by around 8%, from approximately 51,000 at the end of December 2004 to around 55,000 at 30 June 2005. Of these, around 90% were full-service leasing or fleet management contracts, which offer corporate customers a comprehensive range of optional services. The growth in the number of contracts demonstrates the positive effects of the measures taken to optimise sales and the quality of service provided.
Sixt Leasing expanded and optimised its product range, for example by launching Sixt Accident Management (S.A.M.). This is an expanded modular accident management concept, which aims to reduce accident costs, to process claims more efficiently, and to guarantee customer mobility. FleetControl, the established virtual fleet management system for fleet managers, was improved with the addition of an accident cost report, which increases cost transparency.
The Company's presence in foreign markets was enhanced with the inclusion of fleet management solutions for corporate customers in the services offered by the new Sixt franchisees in Thailand and Saudi Arabia.

The Leasing Business Unit achieved an increase in leasing revenue for the first half of 2005 of 8.9% to EUR 150.2 million (H1 2004: EUR 137.9 million). Leasing revenue for the second quarter of EUR 80.1 million was 17.3% above the prior-year figure (H1 2004: EUR 68.4 million), a substantially higher growth than in the first three months (0.7%).

At EUR 150.6 million, revenue from vehicle sales for the first half was 4.6% below the figure for the same period last year (H1 2004: EUR 157.8 million). Total revenue for the first six months increased by 1.7%, from EUR 295.7 million to EUR 300.8 million.

The Business Unit's EBT improved by 18.4% over the prior-year period, from EUR 5.7 million to EUR 6.7 million.

2.4 Outlook

Market experts believe that economic conditions in Germany will improve only very modestly in 2005. At the end of April, the leading economic research institutions lowered their gross domestic product (GDP) growth forecast to 0.7%, down from 1.5% in autumn 2004. Growth in the eurozone as a whole is also muted. The monthly report for July by the European Central Bank (ECB) identifies the continuing high price of oil as a major reason for this.

Despite the restrained overall economic environment, Sixt believes that demand for mobility services will continue to rise and intends to intensify its market development activities in both Business Units.
For 2005 as a whole, the Managing Board has confirmed the earnings forecast that it revised upwards on 14 July and anticipates an increase in consolidated EBT of at least 25% (2004: 50.5 million). Growth of just under 10% in consolidated operating revenue is expected (2004: EUR 934 million), thus putting a more precise figure on the forecast of growth in excess of 5% that was also lifted in July.
The forecasts are based on the assumptions that the macroeconomic environment does not deteriorate significantly, that rental prices remain stable and that no unforeseen events occur.

3. Consolidated Balance Sheet and Statement of Changes in Equity

Assets	Interim report	Annual financial statements
EUR thou.	30 June 2005	31 Dec. 2004

Current assets
Cash and cash equivalents	48,792	36,879
Trade accounts receivable	166,513	103,631
Accounts receivable due from related parties	12,500	12,738
Inventories	19,127	31,161
Prepaid expenses and other current assets	34,077	49,533
Rental assets	505,229	363,713
Total current assets	786,238	597,655

Non-current assets
Property, plant and equipment	26,748	29,640
Intangible assets	1,754	2,526
Goodwill	15,983	16,803
Financial assets	5,774	5,784
Leasing assets	477,605	476,181
Total non-current assets	527,864	530,934

Total assets	1,314,102	1,128,589

Liabilities and shareholders' equity	Interim report	Annual financial statements
EUR thou.	30 June 2005	31 Dec. 2004

Current liabilities
Short-term debt and current portion of long-term debt	217,612	275,032
Trade accounts payable	223,777	187,747
Accounts payable due to related parties	5,593	4,673
Advance payments received	8,907	8,957
Provisions	140,471	108,122
Other current liabilities	40,157	30,450
Others	5,853	4,930
Total current liabilities	642,370	619,911

Non-current liabilities
Long-term debt, less current portion	325,721	175,844
Capital lease obligations, less current portion	3,048	3,191
Others	1,191	937
Total non-current liabilities	329,960	179,972

Minority interest	2,371	2,189

Shareholders' equity
Subscribed capital	57,611	57,611
Capital reserves	119,145	119,145
Revenue reserves (including unappropriated profit)	62,645	49,761
Profit participation capital	100,000	100,000
Total shareholders' equity	341,772	328,706

Total liabilities and shareholders' equity	1,314,102	1,128,589

Consolidated Statement of Changes in Equity

EUR thou.	Subscribed capital	Capital reserves	Revenue reserves¹⁾	Profit participation capital	Minority interest	Total
1 January 2004	57,299	116,902	40,658	0	1,785	216,644
Consolidated net income H1 2004			8,700		37	8,737
Dividends 2003			0			0
Other changes			-258		256	-2
30 June 2004	57,299	116,902	49,100	0	2,078	225,379

EUR thou.	Subscribed capital	Capital reserves	Revenue reserves¹⁾	Profit participation capital	Minority interest	Total
1 January 2005	57,611	119,145	49,761	100,000	2,189	328,706
Consolidated net income H1 2005			13,298		146	13,444
Dividends 2004			0			0
Other changes			-414		36	-378
30 June 2005	57,611	119,145	62,645	100,000	2,371	341,772

¹⁾ Including unappropriated profit

The growth of the Sixt Group's operations is reflected in the figure for consolidated total assets, which increased by EUR 185.5 million or 16.4% from EUR 1.13 billion as at 31 December 2004 to EUR 1.31 billion as at 30 June 2005. The main factor affecting the growth in total assets is the increase in rental assets of EUR 141.5 million as a result of the expansion of the rental fleet.
Leasing assets as at 30 June 2005 of EUR 477.6 million, on the other hand, were only marginally above the figure at the end of last year of EUR 476.2 million. The EUR 62.9 million rise in trade accounts receivable to EUR 166.5 million is attributable to the expansion of the operating business.

On the equity and liabilities side of the balance sheet, long-term debt rose from EUR 175.8 million to EUR 325.7 million, reflecting the issue of a bond with a volume of EUR 150 million maturing in 2010 in the second quarter. The bond further increased the long-term portion of the Group's financial structure and tapped additional sources of funding. Among other benefits, it has enabled short-term liabilities to banks to be repaid and will help to secure further growth in the medium term. The balance sheet showed short-term debt of EUR 217.6 million as at 30 June 2005, compared with EUR 306.2 million at the end of the first quarter of 2005 and EUR 275.0 million at the end of last year. The rise in trade accounts payable is also due to the expansion of the operating business.

Group equity including the profit participation certificates amounted to EUR 341.8 million as at 30 June 2005 and was therefore EUR 13.1 million above the figure at 31 December 2004 of EUR 328.7 million. The Group's equity ratio of 26.0% as at 30 June 2005, compared with 29.1% at 31 December 2004, continues to be well above the average for the industry.

4. Earnings performance

Group Profit and Loss Account Nature of expense method - EUR thou.	H1 2005	H1 2004	Q2 2005	Q2 2004

Revenue	1,233,285	1,182,401	664,335	657,421
Other operating income	5,669	3,210	3,390	1,125
Fleet expenses and cost of lease assets	909,873	920,590	486,427	514,794
Personnel expenses	47,273	44,395	24,564	22,782
Depreciation and amortisation ¹⁾	97,430	64,522	54,397	37,046
Amortisation of goodwill	820	820	410	410
Other operating expenses	125,396	116,356	61,134	55,658

Operating income	58,162	38,928	40,793	27,856

Financial result (net interest result and income from investments)²⁾	-29,093	-17,986	-18,686	-8,999

Result before taxes and minority interest	29,069	20,942	22,107	18,857
Income tax + other taxes	15,625	12,205	10,558	8,772
Extraordinary income / expenses
Result before minority interest	13,444	8,737	11,549	10,085
Minority Interest	146	37	198	79
Result after minority interest	13,298	8,700	11,351	10,006

Net income per share (basic)	0.60	0.39	0.52	0.45
Net income per share (diluted)
Weighted average shares outstanding (basic)	22,504,300	22,382,500	22,504,300	22,382,500
Weighted average shares outstanding (diluted)

¹⁾ Item includes depreciation and amortisation of rental assets: H1 2005: EUR 93,517 thousand (prior-year period: EUR 59,318 thousand) Q2 2005: EUR 54,570 thousand (prior-year period: EUR 34,181 thousand) ²⁾ Including expenses for profit participation capital H1 2005: EUR 4,525 thousand (prior-year period: EUR 0 thousand) Q2 2005: EUR 2,262 thousand (prior-year period: EUR 0 thousand)

Other operating income for the first half of 2005 amounted to EUR 5.7 million compared with EUR 3.2 million for the same period last year. The cost of purchased materials, which corresponds to fleet expenses and the cost of lease assets, includes, apart from the ongoing expenses for the fleet, expenses relating to the sale of rental and lease vehicles (disposal of residual values and other selling expenses). This item amounted to EUR 909.9 million for the first six months, 1.2% below the corresponding figure for last year (EUR 920.6 million). The decrease is in line with the lower revenue from the sale of used rental and lease vehicles.

Personnel costs rose by 6.5% from EUR 44.4 million to EUR 47.3 million, reflecting an increase in the number of employees.

At EUR 98.2 million, depreciation and amortisation for the first half year was 50.4% higher than the figure for the same period of the previous year (EUR 65.3 million). This is because additions to rental and lease assets in the first six months were mainly financed by outright purchase and therefore recognised in the balance sheet, leading to a corresponding increase in the depreciation and amortisation item.

Other operating expenses of EUR 125.4 million were 7.8% up on the figure for the first half of 2004 (EUR 116.4 million).

The financial result for the first half of 2005 amounted to EUR -29.1 million compared with EUR -18.0 million in the previous year. The change reflected the financing costs of the larger fleet and the upwinding cancellation of interest-rate derivatives contracts.

Earnings before taxes (EBT) for the Sixt Group rose 38.8% to EUR 29.1 million in the first six months of 2005 (H1 2004: EUR 20.9 million), a substantially higher rate of increase than the growth in revenue. In the second quarter, EBT amounted to EUR 22.1 million, 17.2% above the figure of EUR 18.8 million for the same quarter of the previous year. Foreign business contributed EUR 3.6 million to EBT in the first half of the year, as against EUR 1.7 million for the first half of 2004.

After adjustment for taxes of EUR 15.7 million (prior-year period: EUR 12.2 million), consolidated net income before minority interest for the half year amounted to EUR 13.4 million. This represents an improvement of 53.9% over the same period of 2004 (H1 2004: EUR 8.7 million). After deducting amounts due to minority shareholders, net income for the half year amounted to EUR 13.3 million (H1 2004: EUR 8.7 million). Net income per share for the first six months of 2005, for a slightly increased number of shares, amounted to EUR 0.60, as against EUR 0.39 in the first half of 2004. Net income per share for the second quarter was EUR 0.52 (Q2 2004: EUR 0.45).

5. Consolidated Cash Flow Statement

Cash flow statement	H1 2005	H1 2004
EUR thou

Cash flows from operating activities:
Net profit / loss	13,444	8,737
Adjustments for:
Minority interest
Depreciation and amortisation	144,181	109,637
Increase / decrease in provisions and accruals	32,349	14,595
Losses / gains on the disposal of fixed assets
Foreign exchange gains / losses
Change in net rental assets	-235,034	-237,104
Change in net working capital	133,812	99,194
Net cash provided by / used in operating activities	88,752	-4,941

Cash flows from investing activities:
Acquisition of subsidiaries, net of cash acquired
Proceeds from disposal of subsidiaries, net of cash transferred
Purchase of property, plant and equipment, net	-195,878	-172,000
Proceeds from sale of equipment, net	148,286	246,704
Net cash used in / provided by investing activities	-47,592	74,704

Cash flows from financing activities:
Other changes in equity	-378	-2
Proceeds from short- or long-term borrowings	150,000	-
Cash repayments of amounts borrowed	-178,980	-50,027
Payment of capital lease liabilities	-143	-5,471
Other	254	-63
Net cash used in financing activities:	-29,247	-55,563
Net effect of currency translation in cash and cash equivalents
Net change in cash and cash equivalents	11,913	14,200
Cash and cash equivalents at beginning of period	36,879	14,162
Cash and cash equivalents at end of period	48,792	28,362

The Sixt Group's net cash provided by operating activities amounted to EUR 88.8 million in H1 2005, following net cash used in operating activities of EUR 4.9 million in the first half of the previous year. Investing activities resulted in net cash used of EUR 47.6 million, compared with net cash provided of EUR 74.7 million for the first half of 2004. The main reason for this was the lower level of revenue, adjusted for depreciation, from sales of vehicles compared with the previous year. Financing activities generated negative cash flow of EUR 29.2 million (H1 2004: EUR -55.6 million). Cash provided by the EUR 150 million bond issue in the second quarter was outweighed by the scheduled repayment of borrower's note loans amounting to EUR 179.0 million. Total consolidated cash funds as at 30 June 2005 amounted to EUR 48.8 million, EUR 11.9 million above the figure at the end of the previous year (EUR 36.9 million).

6. Other information about the Group

6.1 Accounting

The interim financial statements for the period ended 30 June 2005 contained in this report, like the comparative statements for the period ended 30 June 2004, were prepared in accordance with the provisions of the Handelsgesetzbuch (HGB - German Commercial Code).

6.2 Accounting policies

No changes were made to the accounting policies applied in the annual financial statements for the year ended 31 December 2004.

6.3 Sixt Group revenue development

in EUR million	H1 2005	H1 2004	Change in %	Q 2 2005	Q 2 2004	Change in %

Operating revenue	522.2	444.2	+ 17.6	282.7	234.8	+ 20.4
thereof Vehicle Rental	372.0	306.3	+ 21.4	202.6	166.4	+ 21.7
thereof Leasing	150.2	137.9	+ 8.9	80.1	68.4	+ 17.3

Revenue from vehicle sales	709.8	736.6	- 3.6	381.2	421.9	- 9.6
thereof Vehicle Rental	559.2	578.8	- 3.4	298.1	327.3	- 8.9
thereof Leasing	150.6	157.8	- 4.6	83.1	94.6	- 12.3

Other revenue	1.3	1.6	- 17.6	0.5	0.7	- 29.6
Consolidated revenue	1,233.3	1,182.4	+ 4.3	664.4	657.4	+ 1.1

6.4 Segment reporting

The Sixt Group's segment reporting comprises the segments Vehicle Rental, Leasing and Other.

H1 2005 EUR thou.	Vehicle Rental	Leasing	Other	Consolidation/ Reclassification	Sixt Group
Revenue	931,238	300,732	1,315	0	1,233,285
Intersegment sales	2,597	16,940	1,080	-20,617	0
Total revenue	933,835	317,672	2,395	-20,617	1,233,285
Depreciation/amortisation	97,980	45,985⁵⁾	216	-45,931	98,250
Financial result ¹⁾	-23,602	-9,624	3,803	330	-29,093
Segment result ²⁾	20,366	6,747	1,956	0	29,069
Investments ³⁾	1,951	193,919	8	0	195,878
Segment assets	885,066	546,830	683,515	-801,309	1,314,102
Segment liabilities	796,485	519,999	281,852	-626,006	972,330
Employees ⁴⁾	1,635	205	17	0	1,857

H1 2004 EUR thou.	Vehicle Rental	Leasing	Other	Consolidation/ Reclassification	Sixt Group
Revenue	885,087	295,717	1,597	0	1,182,401
Intersegment sales	3,266	35,949	1,095	-40,310	0
Total revenue	888,353	331,666	2,692	-40,310	1,182,401
Depreciation/amortisation	63,928	44,364⁵⁾	1,345	-44,295	65,342
Financial result ¹⁾	-14,280	-8,003	3,231	1,066	-17,986
Segment result ²⁾	15,340	5,657	-55	0	20,942
Investments ³⁾	7,941	163,974	85	0	172,000
Segment assets	828,098	389,355	556,803	-734,151	1,040,105
Segment liabilities	804,586	387,089	299,827	-676,777	814,725
Employees ⁴⁾	1,546	193	14	0	1,753
¹⁾ Corresponds to net interest result (including expenses for profit participation capital) and income from investments ²⁾ Corresponds to earnings before taxes (EBT) ³⁾ Corresponds to investments in fixed assets, not including rental assets ⁴⁾ Annual average number of employees ⁵⁾ Reported under fleet expenses and cost of lease assets H1 2005: EUR 45,931 thousand (previous year: EUR 44,295 thousand)

6.5 Employees

As a result of its healthy business performance in the first half of 2005, the Sixt Group increased the number of its employees. An average of 1,857 people were employed in the first six months, an increase of 104 or 5.9% compared with the first half of the previous year. The additions were mainly made in customer-oriented areas in the domestic market. The average number of employees in Germany rose to 1,351, 100 more than for the same period last year. An average of 506 people were employed abroad in H1 2005, compared with 502 in the first six months of 2004. A significant reduction in the number of employees in the UK compared with previous year, due to the conscious discontinuation of low-margin activities during 2004 and the transfer of business to franchisees, was outweighed by increases in all the other Sixt corporate countries.

6.6 Investments

In response to the strong demand, Sixt added around 55,600 vehicles with a value of EUR 1.2 billion to its rental and leasing fleet in the first six months of this year, thus substantially increasing investments in the fleet. During the same period in the previous year, the relevant figures were approximately 49,200 vehicles worth EUR 1.0 billion. The number of vehicles was therefore around 13% higher and their total value approximately 18% higher. This shows that the average value per vehicle has again increased, as a result of adding vehicles with higher quality fittings.
For the year 2005 as a whole, Sixt expects as before to add vehicles with a value of between EUR 2.4 billion and EUR 2.5 billion to the rental and leasing fleet.

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Pullach, 12 August 2005

Sixt Aktiengesellschaft
The Managing Board