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

1. Summary

• Consolidated operating revenue up 15.6% after nine months
• 25.5% growth in consolidated earnings before taxes (EBT) outstrips revenue growth
• Earnings forecast for 2005 as a whole confirmed in full

Sixt AG, Germany's largest car rental company and one of the leading vendor-neutral and non-bank providers of full-service leasing, continued its excellent business performance in the third quarter of 2005, with revenue and earnings firmly on a growth path. Consolidated operating revenue in the first nine months rose by 15.6%, and consolidated EBT increased by 25.5%, outstripping the rise in revenue. The Managing Board is confirming the forecast for the year as a whole in full, which means that 2005 is likely to be the most successful financial year in Sixt's history.

Although the Group's total assets of EUR 1.22 billion as at 30 September 2005, were 7.8%, or EUR 88 million, higher than as at 31 December 2004 (EUR 1.13 billion), the figure is 7.5% or EUR 98 million lower than as at 30 June 2005. The reasons for the decline include a reduction in rental assets in Q3, accompanied by increased disposals of residual values due to the seasonal increase in the number of vehicles retired. In addition, trade accounts receivable declined by EUR 47.6 million in Q3, mainly caused by technical closing-date effects. As at 30 September 2005, lease assets totalled EUR 489.2 million, EUR 13.0 million more than as at the end of the previous year (EUR 476.2 million) and EUR 11.6 million above the H1 figure.

On the equity and liabilities side of the balance sheet, long-term debt rose from EUR 175.8 million (31 December 2004) to EUR 325.7 million (30 September 2005), reflecting the issue in the second quarter of a bond with a volume of EUR 150 million maturing in 2010. The item does not yet include the EUR 75 million increase in the bond to EUR 225 million, implemented in October. At EUR 96.3 million as at September 30, 2005, short-term debt was significantly below the figure as at the end of 2004 (EUR 275.0 million) and also below the amount as at the end of June 2005 (EUR 217.6 million). The decrease reflects the change in the Group's financial structure towards longer maturities, implemented by issuing the bond.

Group equity including profit participation certificates amounted to EUR 345.7 million as at 30 September 2005, EUR 17.0 million above the figure of EUR 328.7 million as at 31 December 2004. The equity ratio as at the reporting date of 30 September 2005 was 28.4%, once again a very satisfactory level.

Other operating income amounted to EUR 9.4 million in the first nine-months of 2005. The high value of EUR 27.1 million recorded in the previous year included income recognised in Q3 2004 (offset by a similar amount of expenses) in connection with the sale of the administrative complex in Pullach, which had practically no effect on earnings.

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 (disposals of residual values and other selling expenses). After nine months, this item amounted to EUR 1.40 billion, 4.5% more than in the corresponding period of 2004 (EUR 1.34 billion), due to a rise in disposals of residual values from increased sales activities in Q3.

At EUR 71.0 million, personnel expenses for the period from January to September were 4.1% above the figure for the same period last year, reflecting the higher number of employees.

At EUR 135.1 million, depreciation and amortisation after nine months was 32.6% higher than the figure for the same period of the previous year (EUR 101.9 million). The increase is due to additions to rental and lease assets, which were mainly financed through purchase and therefore recognised in the balance sheet, leading to an increase in depreciation and amortisation. Other operating expenses fell by 8.7% from EUR 201.3 million to EUR 183.8 million in the nine-month period; the prior year figure included costs relating to the sale of the real estate complex in Pullach.

The financial result for the first nine months of 2005 amounted to EUR -44.4 million compared with EUR -26.9 million in the previous year. The change reflected the financing costs of the larger fleet and the unwinding of interest-rate derivatives contracts.

Consolidated EBT for the first nine months rose to EUR 55.8 million, up from EUR 44.5 million for the same period last year. This represents an increase of 25.5%, a significantly higher growth rate than for revenue. In Q3, Sixt's EBT rose 13.7%, from EUR 23.6 million to EUR 26.7 million.

After taxes of EUR 29.0 million (Q1-3 2004: EUR 21.8 million), consolidated net earnings before minority interest for the first three quarters amounted to EUR 26.8 million, 18.4% more than in the same period last year (EUR 22.7 million). At EUR 13.4 million, consolidated net earnings before minority interest was slightly down on the level for Q3 2004 (EUR 13.9 million). After minority interest, the nine-months result was EUR 26.3 million, an increase of 18.3% compared with the prior-year period (EUR 22.3 million).

On the basis of 22.6 million shares outstanding, net earnings per share increased by 17.8% to EUR 1.19, after EUR 1.01 in the first nine months of 2004. Net earnings per share for Q3 amounted to EUR 0.59 (Q3 2004: EUR 0.62).

The Sixt Group's net cash provided by operating activities amounted to EUR 158.0 million in the first nine months of 2005, following net cash used in operating activities of EUR 15.6 million in the same period of the previous year. The Group's investing activities used net cash of EUR 84.5 million, compared to EUR 12.2 million used in the first nine months of 2004, mainly due to investments in the leasing fleet. Financing activities generated a cash outflow of EUR 75.4 million, compared to an inflow of EUR 54.2 million in the prior-year period. Cash provided by the EUR 150.0 million bond issue in the second quarter was outweighed by the repayment of loans amounting to EUR 214.2 million. Total cash flows in the nine months to September 30, 2005 resulted in cash and cash equivalents of EUR 34.9 million, down EUR 1.9 million on the figure at the end of the previous year (EUR 36.9 million).

6.1 Accounting

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

6.2 Accounting policies

Apart from exercising the option to report deferred tax assets for the first time, no other changes were made to the accounting policies applied in the annual financial statements for the year ended as at 31 December 2004 as at 30 September 2005.

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

6.5 Employees

The good business performance has had an increasingly positive effect on employment in the Group. In the first nine months of 2005, the Group employed an average of 1,890 people, 7.5%, or 132 people, more than in the same period of 2004 (1,758). The new hires primarily relate to Vehicle Rental in Germany, and particularly to the customer-oriented areas. In total, the average number of employees in Germany increased from 1,258 to 1,381, 123 more than in the nine-month period of 2004. Outside Germany, Sixt employed an average of 509 people, a net increase of 9. In the UK, the number of employees fell as a result of a conscious decision to discontinue business or shift it to franchisees, but the size of the workforce increased in all other corporate countries in Europe, in some cases significantly.

6.6 Investments

The Sixt Group added around 88,500 vehicles with a value of EUR 2.0 billion to the rental and leasing fleet in the first nine months of the year. The figure for the same period of the previous year was around 76,200 vehicles with a value of EUR 1.64 billion. The approx. 16% rise in the number of vehicles and the increase in their accumulated values by around 21% are a reflection of the significant growth in business volume. For the year as a whole, Sixt is continuing to expect investments totalling between EUR 2.4 and EUR 2.5 billion.