Slide 1: First Half 2019 Results
FIRST HALF 2019 RESULTS 01 August 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 & SOLID FINANCIAL COMMERCIAL INITIATIVES PERFORMANCE ▪ Total Fleet +7.2% yoy, at 1.70 million at end June 2019, ▪ ALD selected by Amazon to launch ▪ Leasing Contract & Services Margins up ‘Motors’ personal car leasing platform in 4.4% in H1 19 vs. H1 18 ▪ Pow
Slide 4: Commercial Development
COMMERCIAL DEVELOPMENT 01/08/2019 4
Slide 5: Organic Fleet Growth Guidance of 5 to 7% in 2019 Confirmed
ORGANIC FLEET GROWTH GUIDANCE OF 5 TO 7% IN 2019 CONFIRMED Fleet evolution (‘000) 1,700 ▪ Growth in line with expectations in a complex environment 1,587 1,626 1,663 1,682 365 364 362 > Auto sector under pressure 349 356 > Powertrain transition 1,238 1,270 1,299 1,318 1,338 ▪ Total fleet at 1.70m(1)
Slide 6: Recent Acquisitions and Partnerships
RECENT ACQUISITIONS AND PARTNERSHIPS ▪ Selected by Amazon to launch ‘Motors’ personal car ▪ Acquisition of BBVA Automercantil’s vehicle renting leasing platform in Spain portfolio in Portugal > Fully digital customer journey > Exclusive distribution agreement (through 14 BBVA using ALD solution Port
Slide 7: Digital Platforms Addressing Customer Needs
DIGITAL PLATFORMS ADDRESSING CUSTOMER NEEDS ▪ State of the art ‘End-to-end’ digital ▪ Used car lease offering available in ▪ Proprietary Car sharing platform retail lease solution available in 11 10 countries available in 5 countries markets > Platform allowing for direct distribution, > Flexibility
Slide 8: Powertrain Shift
POWERTRAIN SHIFT Focus on EV 01/08/2019 8
Slide 9: 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 10: Electric and Hybrid Offer to Widen in 2019-2020
ELECTRIC AND HYBRID OFFER TO WIDEN IN 2019-2020 NEW MODELS ANNOUNCED FOR H2 2019 ▪ Issues around the supply of EVs and Hybrids to be solved in the coming quarters A8 e-tron (PHEV) C5 Aircross PHEV Passat Gte (PHEV) Q5 e-tron (PHEV) Passat SW Gte A7 e-tron (PHEV) (PHEV) ▪ CO2 emissions constraints en
Slide 11: 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 01/08/2019 11
Slide 12: Financial Results
FINANCIAL RESULTS Half year ended 30 June 2019 01/08/2019 12
Slide 13: Further Improvement in Operating Leverage
FURTHER IMPROVEMENT IN OPERATING LEVERAGE ▪ Leasing contract and Services margins together Operating leverage up 4.4% in H1 19 vs. H1 18 4-quarter rolling average > Repricing of Diesel residual values putting pressure on 50.7% 50.5% Services Margin growth ▪ Operating Expenses up 2.8% in H1 19 vs. H1
Slide 14: H1 Car Sales Result per Unit at Top of 2019 Guidance
H1 CAR SALES RESULT PER UNIT AT TOP OF 2019 GUIDANCE ▪ Good demand for used cars supporting prices Car Sales Result ▪ Car Sales Result at EUR 24.4m in Q2 19 434 368 346 ▪ Volume of used cars sold(1) 71K in Q2 19, vs. 70K in 258 235 Q2 18 30 26 24 ▪ Average Car Sales Result per unit(1) at EUR 346 in
Slide 15: First Half Financial Results
FIRST HALF FINANCIAL RESULTS In EUR million H1-2018 H1-2019 Var. H1 '19 Var.% H1 / '18 '19 / '18 ▪ Improvement in operating leverage > Leasing contract and Services Margins increased Total fleet (1) (‘000 vehicles) 1,587 1,700 113 7.2% by EUR 26.9m Leasing contract margin 309.9 330.3 20.4 6.6% > Ope
Slide 16: Balance Sheet
BALANCE SHEET 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 19167 18424 743 4.0% o/w Financial lease receivables 763 678 85 12.6% ▪ Equity reinvestm
Slide 17: Diversified Funding Structure
DIVERSIFIED FUNDING STRUCTURE Evolution of ALD funding structure (%) ▪ Optimal funding mix, including 67%(1) of Societe Generale loans Societe Generale loans External loans Bonds Securitisation 9% 6% 8% 7% 13% 16% 21% 23% ▪ EUR 500m 4-year public bond issuance in July 2019 6% 3% 3% 3% ▪ ALD is rated
Slide 18: 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 19: Appendix: Detailed Figures
APPENDIX Detailed figures 01/08/2019 19
Slide 20: Second Quarter Financial Results
SECOND QUARTER FINANCIAL RESULTS Var. Q2 Var.% Q2 In EUR million Q2-2018 Q2-2019 '19 / '18( '19 / '18 ▪ Impairment charges on receivables at EUR 11.4m in Q2 19, up from Q2 18 Total fleet(1) (‘000 vehicles) 1,587 1,700 113 7.2% Leasing contract margin 163.0 165.1 2.1 1.3% ▪ Effective tax rate of 17.2
Slide 21: Quarterly Series
QUARTERLY SERIES (in EUR million)1 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Leasing Contract Margin 146.9 163.0 156.1 157.8 165.2 165.1 Services Margin 152.2 148.9 152.6 163.0 148.1 159.5 Leasing Contract and Services Margins 299.1 311.9 308.6 320.8 313.3 324.6 Car Sales Result 29.6 30.2 25.7
Slide 22: 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 23: Appendix: Core Slides
APPENDIX Core slides 01/08/2019 23
Slide 24: 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 25: A Global Footprint and Leading Position
A GLOBAL FOOTPRINT AND LEADING POSITION FLEET AS AT 30/06/19, LATEST MARKET SHARE AND RANKING BY COUNTRY Market Market Western Europe Fleet Ranking CEE Fleet Ranking share share France 540,935 28% 1 Cz. Rep. 25,901 12%* 4* Germany 174,153 5% 5 Russia 21,340(3) 36%*(4) 1*(4) Italy 201,310 22%(1) 1(1)
Slide 26: 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 27: Full Service Leasing within the Mature Countries Car Markets
FULL SERVICE LEASING WITHIN THE MATURE COUNTRIES CAR MARKETS INCREASING SHARE OF CORPORATE FLEET INCREASING SHARE OF FULL SERVICE LEASING (FSL) WITHIN TOTAL NEW REGISTRATIONS IN NEW CORPORATE REGISTRATIONS Running 21.9M 23.7M 25.2M fleet vehicles vehicles vehicles 26% 31% 32% 10.3% 10.8% 11.0% 2013
Slide 28: 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 29: Corporate & Social Responsibility
CORPORATE J & SOCIAL « RESPONSIBILITY BELGIUM Learning Award 2019 - Feb 2019 Epsilon LUXEMBOURG EcoVadis CSR Gold - Feb 2019 EcoVadis NETHER Great Place Great Paco to Wo POLAI Ecovadis EcoVadis oId - May 2019 ROMANIA Ecovadis CSR Silver - Feb 2019 EcoVadis SLOVENIA. SR Gold - June 2019 EooV SPAIN To