Slide 1: Third Quarter 2019 Results
THIRD QUARTER 2019 RESULTS 06 November 2019
Slide 2: Disclaimer
DISCLAIMER The information contained in this document (the “Information”) has been prepared by ALD (the “Company”) solely for informational purposes. The Information is proprietary to the Company and confidential. This presentation and its content may not be reproduced or distributed or published, d
Slide 3: Main Messages
MAIN MESSAGES FLEET GROWTH KEY STRATEGIC & FINANCIAL PERFORMANCE(2) COMMERCIAL INITIATIVES ▪ Total Fleet +6.7%(1) vs end Sept 18, at ▪ Leasing Contract & Services Margins up 1.73 million ▪ Creation of a digital partnership with 4.8% in 9M 19 vs. 9M 18 Polestar ▪ Operating Expenses up 3.0% vs. 9M ▪ F
Slide 4: FY 2019 Fleet Growth Guidance Confirmed
FY 2019 FLEET GROWTH GUIDANCE CONFIRMED Fleet evolution (‘000) ▪ Total fleet at 1.73m vehicles 1,626 1,663 1,682 1,700 1,734 > 5.8% organic growth vs. end September 18 356 365 364 362 363 > 6.7% total fleet growth incl. Stern Lease > confirming ALD’s leading position in Europe 1,270 1,299 1,318 1,33
Slide 5: Key Commercial and Strategic Initiatives
KEY COMMERCIAL AND STRATEGIC INITIATIVES ▪ Creation of a digital partnership with Polestar ▪ Launch of ALD POP GO in Italy > Fully digital online solution > “Ready to share” full service leasing product > Targeting both corporate and private customers > Exclusive peer to peer product proposing a sea
Slide 6: Continued Improvement in Operating Leverage
CONTINUED IMPROVEMENT IN OPERATING LEVERAGE ▪ Leasing contract and Services margins together Operating leverage up 4.8%(1) in 9M 19 vs. 9M 18 4-quarter rolling average 50.5% > Continued pressure on margin growth in the context of Diesel residual values repricing ▪ Cost Income (excl. Car Sales Result
Slide 7: Resilient Car Sales Result
RESILIENT CAR SALES RESULT ▪ Used cars demand continuing to support prices Car Sales Result 368 346 ▪ Car Sales Result at EUR 21.1(1)m in Q3 19 285 258 235 ▪ Volume of used cars sold(2) 74K(1) in Q3 19, vs. 70K in Q3 18 26 24 21 19 ▪ Average Car Sales Result per unit (2) at EUR 285(1) in 17 Q3 19 an
Slide 8: 9 Months Financial Results
9 MONTHS FINANCIAL RESULTS Var. 9M '19 / Var.% 9M '19 In EUR million 9M-2018 9M-2019(1) 9M ‘18(1) / 9M ‘18(1) ▪ Improvement in operating leverage Total fleet (2) (‘000 vehicles) 1,626 1,734 108 6.7% > Leasing contract and Services Margins increased by EUR 44.6m Leasing contract margin 466.0 497.9 31
Slide 9: 2019 Guidance Confirmed
2019 GUIDANCE CONFIRMED ▪ Total fleet growth (organic) of 5 to 7% versus 2018, plus bolt-on acquisitions as opportunities arise ▪ Car Sales Result per vehicle to be between EUR 100 and 300, on average ▪ Cost/Income (excl. Car Sales Result) ratio to improve further to circa 49% ▪ Total Equity / Total
Slide 10: Appendix: Detailed figures
APPENDIX Detailed figures 06/11/2019 10
Slide 11: Third Quarter Financial Results
THIRD QUARTER FINANCIAL RESULTS In EUR million Q3-2018 Q3-2019(1) Var. Q3 '19 / Var.% Q3 Q3'18(1) '19 / Q3 '18(1) ▪ Leasing contract and Services margins up 5.7% vs. Sept 18 Total fleet (1) (‘000 vehicles) 1,626 1,734 108 6.7% Leasing contract margin 156.1 167.6 11.5 7.4% ▪ Cost/Income ratio (excl.
Slide 12: Quarterly Series
QUARTERLY SERIES (in EUR million)1 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 20192 Leasing Contract Margin 146.9 163.0 156.1 157.8 165.2 165.1 167.6 Services Margin 152.2 148.9 152.6 163.0 148.1 159.5 158.7 Leasing Contract and Services Margins 299.1 311.9 308.6 320.8 313.3 324.6 326.3 Car
Slide 13: Balance Sheet as at June 2019
BALANCE SHEET AS AT JUNE 2019 Var 'H1 Var % 'H1 In EUR million June-19 Dec-18 19/FY'18 19/'18 ▪ Earning Assets up 4.3% vs. end 2018, driven by Earning assets 19,930 19,101 828 4.3% on-balance sheet fleet growth o/w Rental fleet 19,167 18,424 743 4.0% o/w Financial lease receivables 763 678 85 12.6%
Slide 14: Yearly Series
YEARLY SERIES CAGR 2014 - (in EUR million)1 2014 2015 2016 2017 2018 2018 Leasing Contract Margin 381.1 431.6 514.1 574.5 623.8 13.1% Services Margin 445.4 534.0 528.6 593.0 616.7 8.5% Leasing Contract & Services Margins 826.5 965.6 1,042.7 1,167.5 1,240.5 10.7% Car Sales Result 153.1 207.2 201.5 16
Slide 15: Decline in Diesel Share Accelerating
DECLINE IN DIESEL SHARE ACCELERATING Evolution of breakdown(1) of deliveries (ALD) ▪ ALD encouraging powertrain shift by customers > Adjusting RVs on diesel down / petrol up > Consultancy (Events, TCO calculation tools, Advisory) 8% 12% 14% > Adding new sales channels and products 23% 27% 39% ▪ ALD’
Slide 16: Appendix: Core slides
APPENDIX Core slides 06/11/2019 16
Slide 17: 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 1,822 End fleet (‘000) 1,663 Europe Rest of the World as of December 2018 (1) 1,194 (2) ~1,000 1,570 ~700 1,400 (3) (4) 410 382 (5) 177 140 133 108 Favorable purchasing position with supplying partners Strong
Slide 18: A Global Footprint and Leading Position
A GLOBAL FOOTPRINT AND LEADING POSITION FLEET AS AT 30/09/19, LATEST MARKET SHARE AND RANKING BY COUNTRY Market Market Western Europe Fleet Ranking CEE Fleet Ranking share share France 541,651 29% 1 Cz. Rep. 26,208 14%* 4* Germany 179,476 5% 3 Russia 21,888(3) 36%(4) 1(4) Italy 199,126 21%(1) 1(1) H
Slide 19: A Customer Centric Ecosystem for Mobility Solutions
A CUSTOMER CENTRIC ECOSYSTEM FOR MOBILITY SOLUTIONS A broad range of services Benefits for clients Leasing contract margin: 49% (1) Become trusted Offer broad spectrum mobility provider of mobility solutions Greater flexibility and focus on core business Financing Registration & Delivery Maintenance
Slide 20: Mature Multi-Channel Remarketing Approach
MATURE MULTI-CHANNEL REMARKETING APPROACH ▪ BtoB sales: proprietary, digital platform ALDCarmarket.com ▪ BtoC sales: processes specifically tailored to each market > Providing rapid time to market, low cost and good performance vs. > 50 branded used car outlets operating across 19 countries market p
Slide 21: Client Satisfaction and Corporate & Social Responsibility
CLIENT SATISFACTION CORPORATE & SOCIAL RESPONSIBILITY AUSTRIA l J FRANCE conve } Customer service of the year 2020 - Oct 2019 < Fear sustain BELGIUM y SPAIN = eae EMEA FINLAND ses Oikotie as LUXEMBOURG * ceovadis a, 1 NETHERLANDS A SUCCESSFUL FRANCE ‘Great Place to Work Potany HALF-YEAR wen Ecovad C