Slide 1: First half 2020 Results
First half 2020 Results 3 August 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: Resilient business model and agile organisation
Resilient business model and agile organisation Funded Fleet up 3.1% Tailored commercial 19% “Green” vehicles solutions deliveries(1) 1,379 1,338 H1 2019 H1 2020 Funded fleet ('000) EUR 62m Specific provisions and excess Operating margins up 3.1% depreciation EUR -8m 646.0 overheads vs Q2 19 626.6 N
Slide 4: Tactical plan deployed to ensure business continuity
Tactical plan deployed to ensure business continuity Adapted commercial strategy Cost savings Risk management Clients and partners Overheads Cost of risk › Support corporate client base › Hiring freeze › Segmentation of customers with and partners across geographies › Travel, marketing riskier profi
Slide 5: Key strategic initiatives
Key strategic initiatives Launch of flexible offers Launch of Ford Fleet Management ▪ ALD Flex full-service contract available in 19 countries ▪ Providing integrated solutions › Offer to be extended to 30 countries in 2021 ▪ Integrated one-stop shop offer for private and corporate ▪ ALD Swap deploym
Slide 6: ALD Flex
ALD Flex Value for customers Value for ALD A full-service rental contract ▪ Revenue optimisation by ▪ Hassle-free product bundling all services into the offer for a car Category ▪ Answering usage-based needs (new or used ▪ Possibility for ALD to select the and the ▪ Vehicle available immediately veh
Slide 7: Already in line with "green" vehicles target
Already in line with “green”(2) vehicles target Breakthrough of “green”(2) despite reduced delivery Evolution of breakdown(1) of passenger car deliveries volumes 5% 3% 9% 12% 19% 3% 3% ▪ “Green” passenger cars reach 19% of deliveries globally in Q2 20, 24% 5% close to 21% in Europe(3) 28% ▪ Target o
Slide 8: Financials
Financials
Slide 9: Fleet evolution
Fleet evolution Organic total fleet growth + 3.1%(1) vs. end Fleet evolution (‘000) June 2019 ▪ Total Fleet growth +3.8% 1,700 1,734 1,765 1,777 1,765 363 376 384 386 362 Slight decrease in fleet over the quarter caused by severe lockdowns in Western Europe 1,338 1,372 1,389 1,393 1,379 Maintaining
Slide 10: Used Car Sales result reflecting COVID impact
Used Car Sales result reflecting COVID impact Used Car Sales result (EURm) H1 2019 H2 2019 H1 2020 301 Used Car Sales result at EUR -12m in H1 2020 43 209 32 ▪ including EUR 19m used car stock impairment charge recorded in H1 Q2 24 results, reflecting delays in sales and potential price reduction Q4
Slide 11: Provisions anticipating increased pressure on weaker sectors
Provisions anticipating increased pressure on weaker sectors Cost of risk expected to improve in H2 Diversified customer portfolio Cost of risk at EUR 47.6m up from EUR 21.8m in H1 2019 (as at end-19) ▪ Increased provisioning on vulnerable customers ▪ Of which EUR 13.4m forward looking provision ref
Slide 12: Significant provisioning penalising PBT by EUR 62m
Significant provisioning penalising PBT by EUR 62m Excess depreciation release Operating performance EUR 62m Provisioning and excess 11.3 depreciation charge 11.3(1) 12 │03/08/2020 (1) EUR 11m Excess depreciation released in H1 2019 (3) Excluding Used car stock impairment (2) Defined as Leasing cont
Slide 13: First half financial results
First half financial results Net Income (Group Share) at EUR 206.8 million Var % H1 Leasing contract and Services margins down In EUR million H1-2020 H1-2019 Var H1 '20/'19 '20/'19 EUR 22.0m Total fleet (1) (‘000 vehicles) 1,765 1,700 64 3.8% ▪ EUR 30.0m excess depreciation charge recorded in June r
Slide 14: Balance sheet
Balance sheet Var H1 Var % H1 Earning Assets decreased by 3.3% reflecting slight In EUR million June 2020 Dec 2019 '20/FY '19 '20/FY '19 decrease in funded fleet, effect of contract extensions, Earning assets 20,480 21,183 -702 -3.3% and FX translation impacts o/w Rental fleet 19,705 20,337 -631 -3.
Slide 15: Outlook
Outlook
Slide 16: Ready to rebound
Ready to rebound And seize opportunities Leader in Europe, #2 worldwide Diversified customer exposure by type, Robust business model sector and size Multi-year contracts Unrivalled partnership network Operating Track record of cost control through the cycle efficiency Digital platforms matching shif
Slide 17: 2020 New guidance
2020 New guidance(1) Total fleet growth (organic) close to 0% versus 2019, plus bolt-on acquisitions as opportunities arise Used Car Sales result per vehicle to average EUR -250 to EUR 0 Cost/income ratio (excl UCS result) between 50% and 51% 17 │03/08/2020 (1) Premised on the assumption that major
Slide 18: Capital Markets Day: Update on business strategy 12 November 2020
> CAPITAL MARKETS DAY > Update on business strategy > > > 12 November 2020 > > > > > > > > >
Slide 19: Appendix
_ Appendix
Slide 20: Second quarter financial results
Second quarter financial results In EUR million Q2-2020 Q2-2019 Var Q2 '20/'19 Var % Q2 '20/'19 Leasing contract and Services margins down EUR 31.8m Total fleet (1) (‘000 vehicles) 1,765 1,700 65 3.8% ▪ EUR 30m excess depreciation recorded in June results Leasing contract margin 130.5 165.1 (34.7) -
Slide 21: ALD Carmarket: a unified multi-channel remarketing brand
ALD Carmarket: a unified multi-channel remarketing brand Retail strategy : “Bricks ‘n Clicks” ▪ Strategy combining online and on-site customer experience ▪ 50 branded used car retail outlets operating across 19 countries ▪ Fully digital platform: e-signature, online payment ▪ Used car lease and purc
Slide 22: Corporate Social Responsibility (CSR) at ALD
Corporate Social Responsibility (CSR) at ALD General principles Shape the future of Responsible business sustainable mobility culture & practices Low emission fleet • Business ethics • CO2 emissions down • Responsible Sourcing • Powertrain shift • Customer satisfaction • Leader in alternative • Rati
Slide 23: Extra financial assessments
Extra financial assessments CSR maturity assessment provided by independent third parties Ecovadis: MSCI: ‘A’ rating Vigeo Eiris Gaïa index ALD France awarded Included in “engagé RSE” FTSE4Good Group Gold rating Top 1/3 67/100, ‘Advanced’ 76pts (+28pts vs 2018), Index Series renewed (2019) with stat
Slide 24: Solid and adaptable funding structure
Solid and adaptable funding structure Systematic match-funding policy Funding mix evolution ▪ Assets and liabilities matched in terms of duration, currency and interest rate Total funding EUR 18,395m EUR 17,905m ▪ Strict management of liquidity gaps 6% 6% 20% Secure funding sources providing flexibi
Slide 25: Quarterly series
Quarterly series (in EUR million)1 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Leasing Contract Margin 165.2 165.1 167.6 166.2 165.1 130.5 Services Margin 148.1 159.5 158.7 166.1 158.0 162.4 Leasing Contract and Services Margins 313.3 324.6 326.3 332.1 323.1 292.9 Used Car Sales result 19.0 24.4
Slide 26: 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% Used Car Sale
Slide 27: 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 1,865 1,765 Europe Rest of the World End fleet (‘000) as of December 2019 1,255(1) (2) ~1,000 1,668 ~700 1,433 (3) (4) 425 382 (5) 177 140 136 108 Favorable purchasing position with supplying partners Strong
Slide 28: A global footprint and leading position
A global footprint and leading position Breakdown of fleet by country as at 30/06/20, market share and ranking as at 2019 Western Europe Fleet Market share Ranking CEE Fleet Market share Ranking France 560,736 28% 1 Cz. Rep. 26,028 12%* 4* Germany 190,119 5% 5 Russia(2) 22,589 36%*(3) 1*(3) Hungary
Slide 29: 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 Financing on core business Registration & Delivery Maintenance
Slide 30: Continuing outsourcing trend
Continuing outsourcing trend European running vehicle park Other(1) (31/12/2019) 88% Purchase(2) 74% 278m vehicles Corporate fleet FSL 32.6m vehicles 8.4m vehicles 12% 26% Increasing FSL: Fast growing Corporate the preferred market with penetration solution strong potential New vehicle Other(1) regi
Slide 31: 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 31 │03/08/2020
Slide 32: #ALDSolidarityPlan
#ALDSolidarityPlan Ready to help: supporting stakeholders in times of crisis A Group approach onboarding all ALD affiliates, relying on 3 pillars: Loan of vehicles to those fighting in the frontline (ca. 800 vehicles) ▪ 20+ countries put cars at disposal of healthcare professionals. In Spain alone,
Slide 33: Germany
Germany EcoVadis Italy EcoVadis Luxembourg EcoVadis Poland EcoVadis Slovenia Adok Certificacion Top Employer institute Fundacion Madrid
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