Ayvens · EURONEXT:AYV
Ayvens — ALD — FY2019 Earnings Presentation
34 slides from Ayvens's earnings presentation, Feb 6, 2020
Slide 1: Full Year 2019 Results
Full Year 2019 Results 6 February 2020
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: Highlights
_ Highlights
Slide 4: Consistently delivering on guidance
Consistently delivering on guidance Continued strong fleet growth Financial performance Funded fleet showing strong dynamics, up 7.0%, driving Total Fleet Record low Cost / Income (excl. Car Sales Result) ratio of 49.0% in line growth of 6.1% to 1.76m vehicles with guidance of c. 49% Unprecedented p
Slide 5: Strategic initiatives
Strategic initiatives Selected by Tesla as preferred operational ALD Demain leasing provider in Europe ▪ Combining ALD France and Parcours to consolidate ALD’s leading position on the French market ▪ All Tesla models offered ▪ Improving customer experience with a new, unified mobility offer througho
Slide 6: 2019: Continued strong fleet growth
2019: Continued strong fleet growth Fleet evolution (‘000) 2016-2019 CAGR +8.7% 1,765 Funded fleet showing strong dynamics at +7.0% 1,663 1,511 Sustained growth in all regions, keeping the regional breakdown stable 376 1,376 365 ▪ Wide distribution network in Western Europe 332 330 ▪ New partnership
Slide 7: Fleet growth: Strong contribution from partnerships
Fleet growth: Strong contribution from partnerships By Sales Channel (‘000) (as at 31/12) YoY growth Fleet sourced through partnerships continues 1,663 1,765 to show strong growth (corporates and private 1,511 +12.1% 36% lease) 32% 34% Unique partnership model remains a key +3.0% 66% 64% differentia
Slide 8: Leading the powertrain transition
Leading the powertrain transition Successful reduction in diesel share of passenger car deliveries in Evolution of breakdown(1) of passenger car deliveries ALD fleet 4% 6% 2% 3% 11% 13% 4% EU mandated CO2 emission targets for OEMs 21% 7% 27% ▪ enforced from 2020 onwards 32% ▪ driving wider take up o
Slide 9: Financial Results
Financial Results
Slide 10: Sustained improvement in operating leverage
Sustained improvement in operating leverage Operating leverage 4-quarter rolling average Leasing contract and Services margins up 4.5% 51.2% ▪ Progressive repricing of diesel residual values putting pressure on margins in a competitive commercial environment ▪ Stern Lease included from June 2019 50.
Slide 11: Cost control permitting significant investments to sustain innovation
Cost control permitting significant investments to sustain innovation Evolution of productivity 267 Scale and process digitisation driving strong 254 productivity gains 240 232 ▪ Headcount rises structurally more slowly than Total Fleet Ongoing investment in IT 2016 2017 2018 2019 Number of vehicles
Slide 12: Car Sales Result in the upper part of 2019 guidance range
Car Sales Result in the upper part of 2019 guidance range Car Sales Result Car Sales Result at EUR 75.0m in 2019, down 27% Car sales result (€m) 984 Car sales result per unit (€) Yearly Guidance vs. 2018 804 836 Average CSR per unit(1) EUR 254 in 2019 639 confirming normalisation trend 581 362 207 2
Slide 13: 2019 Operating and financial results
2019 Operating and financial results In EUR million FY-2019 FY-2018 Var. FY '19 / Var.% FY '19 Leasing contract and Services margins up EUR 55.9m '18(4) / '18(4) vs. Operating expenses up EUR 17.4m reflecting Total fleet (1) (‘000 vehicles) 1,765 1,663 101 6.1% strong incremental operating leverage
Slide 14: Balance sheet
Balance sheet Var Var % Earning Assets rose 10.9% underpinned by funded In EUR million Dec-19 Dec-18 FY'19/FY'18 FY'19/FY '18 fleet growth, and an evolving vehicle mix towards Earning assets 21,183 19,101 2,081 10.9% higher value models (SUV, EV) and countries with o/w Rental fleet 20,337 18,424 1,9
Slide 15: 2019 Performance in line with guidance
2019 Performance in line with guidance Guidance Realised 2019 performance Fleet Total fleet growth (organic) of 5 to 7% versus 2018, plus bolt-on Organic Total fleet growth of 5.2% in line with guidance acquisitions as opportunities arise Car Sales Result CSR per vehicle between EUR 100 and
Slide 16: Outlook
Outlook
Slide 17: Key drivers to future growth
Key drivers to future growth Outsourcing trend INVESTOR DAY 2020 • Widest geographical coverage • Unique partnership distribution model Update on business strategy Date to be announced in due course Digitisation •State-of-the-art digital tools oOptimising customer experience oProviding new mobility
Slide 18: 2020 Guidance
2020 Guidance Total fleet growth (organic) of 5 to 7% versus 2019, plus bolt-on acquisitions as opportunities arise • FSL growth drivers remain in place • ALD well positioned as a market leader • Relevant tools and partnerships • Proven track record in bolt on acquisitions Car Sales Result per vehic
Slide 19: Appendix
Appendix
Slide 20: Our CSR strategy
Our CSR strategy RESPONSIBLE BUSINESS CULTURE & PRACTICES Business ethics (C&C) SUSTAINABLE RESPONSIBLE Positive Sourcing MOBILITY EMPLOYER Customer satisfaction Ratings & External benchmarks Internal CSR community Low emission vehicles (powertrain shift + People development, TOWARDS CARBON electrif
Slide 21: Q4 2019 Operating and financial results
Q4 2019 Operating and financial results Var. Q4 '19 / Var.% Q4 '19 Leasing Contract & Services Margins together up In EUR million Q4-2019 Q4-2018 '18( / '18 3.5% vs. Q4 18 Total fleet (1) (‘000 vehicles) 1,765 1,663 101 6.1% Leasing contract margin 166.2 157.8 8.4 5.3% Cost/Income ratio excl. Car Sa
Slide 22: Quarterly series
Quarterly series (in EUR million)1 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Leasing Contract Margin 146.9 163.0 156.1 157.8 165.2 165.1 167.6 166.2 Services Margin 152.2 148.9 152.6 163.0 148.1 159.5 158.7 166.0 Leasing Contract and Services Margins 299.1 311.9 308.6 320.8 313
Slide 23: Yearly series
Yearly series CAGR 2014 - (in EUR million)1 2014 2015 2016 2017 2018 2019 2019 Leasing Contract Margin 381.1 431.6 514.1 574.5 623.8 664.1 11.7% Services Margin 445.4 534.0 528.6 593.0 616.7 632.3 7.3% Leasing Contract & Services Margins 826.5 965.6 1,042.7 1,167.5 1,240.5 1,296.4 9.4% Car Sales Res
Slide 24: Stable funding structure
Stable funding structure 2019 financing Evolution of ALD funding structure (%) (EURm) ▪ July 2019: EUR 500m senior unsecured ▪ September 2019: EUR 250m EIB financing 15,130 16,831 18,395 Total Funding 9% 8% 6% 13% 21% ALD is rated 6% 21% 3% 5% ▪ BBB+/A-2 by S&P with stable outlook Securitisation ▪ A
Slide 25: Earning assets
Earning assets Var Change in % In Euro million Dec-2019 Dec-2018 FY '19/FY '18 FY '19/FY '18 Total fleet (‘000 vehicles) 1,765 1,663 101 6.1% o/w funded fleet 1,389 1,299 90 7.0% o/w off-balance sheet fleet 376 365 11 3.1% Acquisition cost 27,563 25,063 2,501 10.0% Accumulated depreciation & impairm
Slide 26: Agenda 2020
Agenda 2020 Subtitle 3 August 2020 Investor Day 6 May 2020 Trading update and Q1 Q2 and H1 results Date to be announced results 6 February 2020 20 May 2020 5 November 2020 Q4 and FY 2019 results General assembly of Trading update and Q3 shareholders results 26 │06/02/2020
Slide 27: Bolt-on acquisitions
ALD’s inception and large Proven track record of bolt-on acquisitions ALD InterLeasing Highly synergetic May April Acquisition of the European car leasing operations of Deutsche Bank, re-branded along with Societe Generale’s car leasing division Parcours acquisitions historically acquisitions into A
Slide 28: 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 29: A global footprint and leading position
A global footprint and leading position Breakdown of fleet, market share and ranking by country as at 31/12/19 Western Europe Fleet Market share Ranking CEE Fleet Market share Ranking France 553,237 28% 1 Cz. Rep. 26,793 12%* 4* Germany 185,974 5% 5 Russia 22,542(2) 36%*(3) 1*(3) Italy 194,870 22% 1
Slide 30: 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: 48% (1) Become trusted Offer broad spectrum mobility provider of mobility solutions Greater flexibility and focus on core business Financing Registration & Delivery Maintenance
Slide 31: Continuing outsourcing trend
Continuing outsourcing trend European running vehicle park Other(1) (31/12/2018) 88% Purchase(2) 79% 367m vehicles Corporate fleet FSL 43.5m vehicles 8.6m vehicles 12% 21% Increasing FSL: Fast growing Corporate the preferred market with penetration solution strong potential New vehicle Other(1) regi
Slide 32: ALD Electric offer - Service proposal
ALD Electric offer - Service proposal REPORTING AND AUTOMATIC PAYMENT & REIMBURSEMENT CONSULTANCY EV ENABLERS TEST DRIVE HOME & OFFICE PUBLIC CHARGER CHARGING NETWORK 32 │06/02/2020
Slide 33: Awards
Corporate & Social Responsibi Austria EcoVadis CSR Silver - July 2019 EcoVadis Belgium Learning Award 2019 - Feb 2019 Epsilon Croatia EcoVadis CSR - Gold - Dec 2019 Ecovadis Finland Responsible employer, summer job Luxembourg Renewal ISO300] Feb Euroquality System EcoVadis CSR Gold - EcoVadis 019 20
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