Slide 1: First Quarter 2018 Results
ALD FIRST QUARTER 2018 RESULTS 04 MAY 2018
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements relating to the targets and strategies of ALD SA (the “Company”) and its subsidiaries (together with the Company, the “Group”). These forward-looking statements are based on a series of assumptions, both general and specific, in partic
Slide 3: Main Messages
MAIN MESSAGES Continued strong fleet growth in first quarter Total Fleet 1.54 m vehicles at end March 2018, up 9.3% vs. twelve months earlier Strong growth in Leasing Contract and Services Margins, together up 6.6% vs. Q1 17 Car Sales Result at EUR 29.6 million. Car Sales Result per unit at EUR 417,
Slide 4: Continued Strong Fleet Growth
CONTINUED STRONG FLEET GROWTH Total fleet at 1.54 million vehicles Fleet evolution 9.8% 9.3% 10% Target (2018) • Total fleet up 9.3% vs. end March 2017, up 8% 1,481 1,511 1,538 1,407 1,441 1.8% vs. end 2017 336 • Record order bank reflecting 1,202 strong demand lengthening delays in delivery of
Slide 5: Financial Results First Quarter 2018
FINANCIAL RESULTS FIRST QUARTER 2018 KEY COMMENTS Var. Q1 '18 / In EUR million Q1-2018 Q1-2017 '17 Gross Operating Income: EUR 328.7m, stable vs. Q1 17 Total fleet (1) (‘000 vehicles) 1,538 1,407 +9.3% Leasing Contract Margin rose 6.0%(3), Services Margin Leasing contract margin 146.9 128.8 (3) +14.
Slide 6: Focus: Car Sales Result
FOCUS: CAR SALES RESULT FIRST QUARTER 2018 Per unit margin trend in line with expectations Car Sales Result(1) • Car Sales Result at EUR 29.6m, down EUR 3.0m vs. 60 800 EUR 32.6m in Q4 17 (and down EUR 18.2m vs. Q1 17) 700 50 600 • Volume of used cars sold(1) c. 71K in Q1 18, up vs. 69K 40 in Q4 17
Slide 7: Residual Value Management
RESIDUAL VALUE MANAGEMENT ALD residual value risk is mitigated by several structural factors ROBUST RESIDUAL VALUE RISK MANAGEMENT FRAMEWORK ALD’s central team monitors • Robust residual value risk management framework Setting of Residual and supervises RV settings Value (RV) is done • Prudential
Slide 8: Remarketing
REMARKETING Optimal multi channel approach A growing focus on B to C sales • ALD believes in a multi-channel approach to the sale of almost 300K used cars(1) coming off lease in Sales processes to private customers specifically tailored 2018 (vs. 259K in 2017), of which 270K in Europe to each market
Slide 9: 2018 Guidance
2018 GUIDANCE 2018 targets Total Fleet Growth of 8 to 10% versus 2017 Leasing Contract & Services Margins to grow in line with Total Fleet Gross Operating Car Sales Result (CSR) to be between EUR 200 and EUR 400 per Income vehicle in 2018, on average (GOI) Cost/Income (excl. CSR) ratio to im
Slide 10: Appendix
APPENDIX | ALD 04/05/2018 | P.10
Slide 11: Quarterly Series
QUARTERLY SERIES (in EUR million)1 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Leasing Contract Margin 128.8 143.2 148.9 153.6 146.9 Services Margin 151.8 145.8 143.7 151.8 152.2 Car Sales Result 47.8 44.9 40.0 32.6 29.6 Gross Operating Income 328.4 333.9 332.5 338.0 328.7 Total Operating Expenses (144.
Slide 12: Diesel
DIESEL(1) Accelerating shift away from Diesel Evolution of Diesel share of deliveries (ALD) • ALD moving towards more balanced fleet mix Driving RV on diesel down / petrol up, esp. for lower 76,8% mileages Proactively advising clients on Car Policy modification TCO calculation tools embarking
Slide 13: Cost of Risk: Strong Credit Quality with Low Credit Losses
COST OF RISK(1): STRONG CREDIT QUALITY WITH LOW CREDIT LOSSES Evolution of cost of risk(1) in EUR million KEY COMMENTS (bar chart) 24 24 • Structurally low cost of risk(1) 22 21 21 22 18 ALD retains vehicle ownership during life of contracts 25 25 As % of ALD applies strict and selective risk un
Slide 14: Balance Sheet
BALANCE SHEET Change in % KEY COMMENTS In EUR million Dec 17 Dec 16 Dec '17/'16 Earning assets 16,930 14,588 +16.1% Earning Assets up 16.1% in 2017 underpinned by strong fleet growth Long term invt. – Equity Reinvestment 831 980 (15.3%) Cash & Cash equivalent 195 165 +18.2% Equity reinvestments in l
Slide 15: Funding
FUNDING STABLE FUNDING MIX Funding requirement rising with fleet Funding structure(1) • As a corporate affiliated to a bank, ALD has no regulatory liquidity requirements Total Funding Securitisation EUR 15,130m 9% as at 31/12/2017 • Societe Generale commitment to remain as the main External loans (u
Slide 16: ALD: A Customer Centric Ecosystem for Mobility Solutions
ALD: A CUSTOMER CENTRIC ECOSYSTEM FOR MOBILITY SOLUTIONS A broad range of services Benefits for clients Leasing contract margin: 43% (1) Become trusted Offer broad mobility provider spectrum of mobility solutions Greater flexibility and focus on core business Financing Registration & Delivery Mainte
Slide 17: Continuing Outsourcing Trend
CONTINUING OUTSOURCING TREND KEY TRENDS Corporate fleet growing faster than other segments Corporates increasingly prefer FSL to other solutions Fast growing market with strong potential (1) Source: Frost & Sullivan: Corporate running fleet excludes direct B2C retail, rental car companies, deale
Slide 18: ALD: A Leader in Full Service Leasing
ALD: A LEADER IN FULL SERVICE LEASING # countries 32 43 29 5 19 25(3) 1 1(5) 3 5 2 covered 1 745 End fleet (‘000) 1 511 Europe Rest of the as of December World (1) 2017 1 104 (2) 1 000 1 431 680 1 333 1 064 383 (3) 382 (4) (5) 155 146 (6) 133 108 Favorable purchasing position with supplying partners
Slide 19: A Global Footprint and Leading Position
A GLOBAL FOOTPRINT AND LEADING POSITION TOP 3 POSITIONS IN 27 COUNTRIES Breakdown of vehicles, market share and ranking by country – FSL & FM (ALD fleet data at end 2017) Western Market Market Fleet Ranking CEE Fleet Ranking Europe share share France 494,743 28% 1 Cz. Rep. 20,584 11%* 5* Germany 154
Slide 20: ALD Is at the Forefront of Innovation in Mobility Services
ALD IS AT THE FOREFRONT OF INNOVATION IN MOBILITY SERVICES Fleet Financing DIGITAL & SHARING TELEMATICS Fleet Services Driver Services Car Sharing Solutions ALD Sharing My ALD A single entry point for MULTI- TRAVEL & ALD customers & mobility PAYMENTS assistant for drivers MODALITY CAR SHARING PR
Slide 21: Experienced International Management Team
EXPERIENCED INTERNATIONAL MANAGEMENT TEAM Experienced and dynamic executive Efficient hub organisation management team Executive management vision disseminated through empowered local management Decentralized operational organisation managed through the Operating Mike MASTERSON Tim ALBERTSEN Gilles
Slide 22: ALD Successfully Listed on Euronext Paris
ALD SUCCESFULLY LISTED ON EURONEXT PARIS ALD’s shares 1 Societe Generale will remain the controlling shareholder of ALD commenced trading on 16 June 2017 ALD has historically operated as a quasi-autonomous entity within 2 the Societe Generale group Implied total valuation of ALD EUR 5.78 billion at
Slide 23: High Quality of Services Recognised Through Numerous Awards
HIGH QUALITY OF SERVICES RECOGNISED THROUGH NUMEROUS AWARDS Note: Data as of 31/12/2016 04/05/2018 | P.23