Slide 1: ALD First Half 2018 Results
ALD FIRST HALF 2018 RESULTS 02 AUGUST 2018 02/08/2018 | P.1
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 STRONG FLEET GROWTH NEW PARTNERSHIPS France: Axa FSL(2) offer incl. Full Damage Waiver, targeting Total Fleet 1.59m, up 10.1% vs. June 2017, confirming ALD’s leading position in BtoB & BtoC Europe Private lease vehicles reach 95K in June 2018 Netherlands: Mazda Already partner in Spain
Slide 4: Commercial Development
COMMERCIAL DEVELOPMENT 02/08/2018 | P.4
Slide 5: Continued Strong Fleet Growth
CONTINUED STRONG FLEET GROWTH Total fleet at 1.59 million vehicles Fleet evolution (‘000) 9.8% 10.1% 10% Target 2018 • Total fleet up 10.1% vs. end June 2017, up 5.0% vs. 8% 1,538 1,587 end 2017 1,441 1,481 1,511 332 349 343 • Broad based organic growth across regions 1,099 1,179 1,238 • Growth cont
Slide 6: Focus on Innovation
FOCUS ON INNOVATION 02/08/2018 | P.6
Slide 7: ALD Business Model Transformation Already Underway
ALD BUSINESS MODEL TRANSFORMATION ALREADY UNDERWAY INVESTMENT IN TECHNOLOGY FOCUSED ON NEW CAPABILITIES AND PRODUCTS Sample of ALD offering Continuing shift from DIGITAL Digital Platforms ownership to usage & myALD CONNECTED Private Lease Driver CAR Remarketing v2.0 Services Retail platfor
Slide 8: Retail Platform for Used Cars
RETAIL PLATFORM FOR USED CARS MULTI CHANNEL REMARKETING APPROACH Innovative “Bricks & Clicks” model • Expanding existing solutions to allow purchase or lease of used cars: E-signature Online payment Trade-in offer Full transparency on maintenance record and body condition • Customer is free
Slide 9: Market Leading 'End to End' Digital Solution
MARKET LEADING ‘END TO END’ DIGITAL SOLUTION From « supporting our business » To « generating growth » Full digital journey « 1 stop for all services » Duplication of the platform for new channels More clients and Customer satisfaction OEM, Banks New products revenues & Margin improvement Enables
Slide 10: Financial Results Half Year Ended June 2018
FINANCIAL RESULTS HALF YEAR ENDED 30 JUNE 2018 02/08/2018 | P.10
Slide 11: Leasing Contract & Services Margins
LEASING CONTRACT & SERVICES MARGINS MARGINS SUPPORTED BY STRONG Margins vs. Total Fleet FLEET GROWTH rolling 4-quarter averages 1,550 310 • Leasing contract & services margins up 7.9% in Q2 18 1,500 300 vs. Q2 17, and up 7.3% in H1 18 vs. H1 17 1,450 290 • Margin growth below fleet growth in H1 18,
Slide 12: Car Sales Result
CAR SALES RESULT RESILIENT SECOND QUARTER Car Sales Result 747 722 633 • Car Sales Result at EUR 30.2m, stable vs. EUR 29.6m 469 434 in Q1 18 (but down vs. EUR 44.9m in Q2 17) 417 47.8 44.9 • Average Car Sales Result per unit(1) held up well at 40.0 32.6 29.6 30.2 EUR 434 in Q2 18, vs. EUR 417 in Q1
Slide 13: Solid Operating and Financial Results - Half Year 2018
SOLID OPERATING AND FINANCIAL RESULTS HALF YEAR 2018 In EUR million H1-2017 H1-2018 Var. H1 '18 / KEY COMMENTS '17 Total fleet (1) (‘000 vehicles) 1,441.3 1,586.8 10.1% Gross Operating Income at EUR 670.8m, up 1.3% vs. Leasing contract margin 272.0 309.9 10.0%(4) H1 17 Services margin 297.5 301.1 4.
Slide 14: Balance Sheet
BALANCE SHEET In EUR million Jun-18 Dec-17 Earning assets 18,026 16,930 KEY COMMENTS o/w Rental fleet 17,383 16,336 o/w Financial lease receivables 643 594 Earning Assets up 6.5% during H1 18 underpinned by Long term invt. – Equity Reinvestment 755 831 on-balance sheet fleet growth of 5.0% over same
Slide 15: Stable Funding Mix
STABLE FUNDING MIX KEY COMMENTS Evolution of the funding structure (%) 72%(1) of funding provided by Societe Generale, stable despite: 10% 8% 9% 11% 9% 6% – UK Securitization (GBP300m) terminated in March 18 12% 15% 19% 12% 13% 19% – BBVA external loan (EUR400m) refinanced 6% 4% 5% 6% 3% 5% 2018
Slide 16: 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 17: Appendix
APPENDIX | ALD 02/08/2018 | P.17
Slide 18: Solid Operating and Financial Results - 2nd Quarter 2018
SOLID OPERATING AND FINANCIAL RESULTS 2ND QUARTER 2018 Var. Q2 '18 / KEY COMMENTS In EUR million Q2-2017 Q2-2018 Q2 '17 Total fleet (1) (‘000 vehicles) 1,441.3 1,586.8 10.1% Leasing Contract & Services Margin up 7.9% vs Q2 17 Leasing contract margin 143.2 163.0 13.8% Services margin 145.8 148.9 2.1%
Slide 19: Quarterly Series
QUARTERLY SERIES (in EUR million)1 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Leasing Contract Margin 128.8 143.2 148.9 153.6 146.9 163.0 Services Margin 151.8 145.8 143.7 151.8 152.2 148.9 Car Sales Result 47.8 44.9 40.0 32.6 29.6 30.2 Gross Operating Income 328.4 333.9 332.5 338.0 328.7 342.1
Slide 20: 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 21: 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 22: ALD: A Customer Centric Ecosystem
ALD: A CUSTOMER CENTRIC ECOSYSTEM FOR MOBILITY SOLUTIONS A broad range of services Benefits for clients Leasing contract margin: 46% (1) Become trusted Offer broad mobility provider spectrum of mobility solutions Greater flexibility and focus on core business Financing Registration & Delivery Mainte
Slide 23: Continuing Outsourcing Trend
CONTINUING OUTSOURCING TREND KEY TRENDS European running vehicle park Other(1) (31/12/2017) 88% Purchase(2) 80% Corporate fleet growing 366m vehicles Corporate fleet FSL faster than other segments 43.5m vehicles 8.6m vehicles 12% 20% Corporates increasingly Increasing FSL: Fast growing Corporate
Slide 24: Stable Market - Diesel Putting Pressure on Prices
STABLE MARKET - DIESEL PUTTING PRESSURE ON PRICES US vs. EU: Used vehicle prices 140 130 120 112 110 100 90 92 80 70 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (1) North America Europe Sources: NADA, L’Argus (1) Belgium, France, Germany, Italy, Netherlands, Spain, UK 02/08/2018 | P.24
Slide 25: 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 26: Remarketing
REMARKETING Remarketing tools & process improvement ROBUST RESIDUAL VALUE RISK MANAGEMENT FRAMEWORK • “ALD Carmarket”: proprietary electronic sales platform, ALD’s central team monitors extending remarketing network and increasing cost Setting of Residual and supervises RV settings Value (RV) is d
Slide 27: Corporate & Social Responsibility
CORPORATE & SOCIAL bd RESPONSABILITY AUSTRIA Silver CSR Certificate - May 2018 Corpotate Social Responsibilities - EcoVadis HUNGARY Gold CSR Certificate - April 2018 Corporate Social Responsibilities - EcoVadis UK Gold CSR Certificate - July 2018 Corporate Social Responsibilities - EcoVadis HOLDING