Ayvens · EURONEXT:AYV
Ayvens — Investor Day (September 2023)
56 slides from Ayvens's investor day presentation, Sep 21, 2023
Slide 1: Capital Markets Day
Capital Markets Day 21 SEPTEMBER 2023
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements relating to the targets and More detailed information on the potential risks that could affect ALD | LeasePlan’s strategies of the ALD | LeasePlan Group. These forward-looking statements are based on financial results can be found in t
Slide 3: Today's speakers
Today’s speakers Tim Albertsen John Saffrett Berno Kleinherenbrink Patrick Sommelet Group Chief Group Deputy Chief Group Deputy Chief Group Chief Financial Officer Executive Officer Executive Officer - DGD Executive Officer - DGA & Group Deputy Chief Executive Officer - DGA 3
Slide 4: ALD | LeasePlan key highlights
ALD | LeasePlan key highlights LEADERSHIP Undisputed industry leader, twice the size of the closest competitor GROWTH Best positioned to capture market growth SUSTAINABILITY Largest multi-brand EV(1) fleet Margin, procurement and cost synergies EFFICIENCY Best-in-class operating efficiency ROBUSTNES
Slide 5: Content
1. Leadership position in a very attractive industry 2. Our strategic ambition: shape the future of mobility 3. How we create value: Content PowerUP 2026 4. Our financial trajectory 5. Key takeaways 6. Q&A 7. Appendices 4
Slide 6: Leadership position in a very attractive industry
1 Leadership position in a very attractive industry
Slide 7: We make mobility easy for our clients
We make mobility easy for our clients, so they can focus on their business Full-service leasing Fleet management We finance We provide a wide We sell the vehicles vehicles range of services(2) or lease them again Our margins are evenly split between financing and services(1) Clients don’t need to fu
Slide 8: The industry benefits from very attractive dynamics
The industry benefits from very attractive dynamics A highly High barriers Strength and profitable to entry resilience business Structurally high returns Access to long-term funding Client stickiness • Limited sensitivity to at competitive cost interest rates Predictability of margins Scale really m
Slide 9: Long-term megatrends driving strong structural growth in the mobility sector
Long-term megatrends driving strong structural growth in the mobility sector New opportunities Emerging Evolving Electrification Behavioral changes from digital ecosystem competition EV & eLCV Shift from ownership Increasing Fragmentation and Continuing OEMs Around 70% of new to usership digitalizat
Slide 10: The strongest business model in the sector
The strongest business model in the sector Powerful global operating Undisputed leadership Strong financial profile platform Uniquely positioned to create value in the mobility industry 10
Slide 11: Our strategic ambition: shape the future of mobility
2 Our strategic ambition: shape the future of mobility
Slide 12: ESG drives everything we do
ESG drives everything we do Our sustainability pillars are fully embedded in our strategy Shape the future of Act across our value chain to Behave responsibly, Be a supportive sustainable mobility, with a benefit the environment internally and with external and responsible employer full suite of cli
Slide 13: Our strategy: leveraging on the power of leadership
Our strategy: leveraging on the power of leadership to shape the future of mobility 2026 2023 2020 Shape the future of mobility Achieve excellence Establish leadership New brand Address fast-growing markets position Successfully integrate LeasePlan from a leadership position Lead the sector’s transf
Slide 14: Our main strategic and financial objectives for 2026
Our main strategic and financial objectives for 2026 Clients Operational efficiency Responsibility Profitability Lead the way to Achieve superior Focus on profitable growth Successfully integrate LeasePlan sustainable mobility financial return Share of EV in new car Earning assets (1) Annual synergi
Slide 15: How we create value: PowerUP 2026
3 How we create value: PowerUP 2026
Slide 16: Successfully integrating LeasePlan
Successfully integrating LeasePlan
Slide 17: Numbers behind our undisputed leadership
Numbers behind our undisputed leadership Our leadership Total fleet (in m) 3,41 1,6 #1 multi-brand player #1 29 in countries #1 multi-brand EV fleet 1,62 1,53 0,84 0,75 including the 428,000 1,8 0,46 top European markets Electric Vehicles(7) ALD / LP Arval Element Crédit agricole Alphabet Athlon Our
Slide 18: The best talents in the industry are committed to the success of our strategy
The best talents in the industry are committed to the success of our strategy Key staff (Executive Committee, local MDs and direct reports) appointed after a rigorous selection process to ensure the top Best leadership team talents are committed to our success Balance between former ALD and LeasePla
Slide 19: Integration is fully on track
Integration is fully on track Strong governance Roadmap • Dedicated integration departments at local and Alignment on pricing components function levels supervised by Exco member and products • Fortnightly review by Exco Clients New brand Local brand deployment • Priority to largest markets Integrat
Slide 20: Creating value like no one else: the power of scale
Creating value like no one else: the power of scale
Slide 21: Creating substantial synergies
Creating substantial synergies Breakdown of Margin and procurement synergies Phasing of annual P&L annual synergies Cost synergies synergies (in EUR m) 440 350 120 EUR 2024 2025 2026 440m by 2026 EUR 30m annual synergies secured by the end of 2023 (1) 21 1. Synergies secured by the end of 2023 and p
Slide 22: Leveraging our scale to buy more effectively
Leveraging our scale to buy more effectively Price and bonus improvement Pre-configured vehicle purchasing • Normalize and align conditions to the best of ALD and LeasePlan’s Steering • Vehicle purchase represents c. 25% of total procurement synergies 20% in 2026 vs. 10% in 2022 • Savings opportunit
Slide 23: Leveraging our scale to reduce costs
Leveraging our scale to reduce costs Breakdown of cost synergies Scalable platform enabling process excellence Operating process + efficiency improvements IT cost savings Mutualized investments Direct spend savings including real estate + Harmonization of process & services A global scalable modular
Slide 24: Integration of local entities: Example of France
Integration of local entities: go fast and efficient – Example of France, our largest market Clear governance Ensure our employees remain highly empowered • One single Managing Director per country • Discussions with local works councils launched • Appointment of a local Coordination Integration Com
Slide 25: Offering the power of choice to our customers
Offering the power of choice to our customers
Slide 26: Transition from ownership to usership creates significant growth opportunities
Transition from ownership to usership creates significant growth opportunities Leveraging on our leadership position to capture the market’s growth potential 2021 market Base scenario 2030(2) European new car registrations 2021: 13.7m(1) European new car registrations 2030: 16.6m CAGR Corporate/Publ
Slide 27: Uniquely positioned in all market segments and channels
Uniquely positioned in all market segments and channels International corporate clients Local corporates Partnerships Direct to consumers Complete LCV (1) offer (2) Multi-brand Pre-configured vehicles(2) Global account management Attractive pricing Used car leasing (multi-cycle) Comprehensive fleet
Slide 28: International corporate clients
#1 global multi-brand, multi-channel player offering the broadest range of products across all segments Best-in-class Unrivalled Enhanced distribution Broadest client reach product range geographical footprint capabilities One-stop shop with high Undisputed leadership 44 countries Undisputed leaders
Slide 29: Client and partner's testimonials
Client and partner’s testimonials Client Partner 29
Slide 30: Leading the way to sustainable mobility
Leading the way to sustainable mobility Advising our clients Making it simple Going beyond about the greenest for them to choose electrification way electric and into MaaS(4) Electrification as #1 fleet strategy Providing end-to-end solutions Providing flexible and multimodal travel options topic fo
Slide 31: Commercial strategy designed to optimize financial return
Commercial strategy designed to optimize financial return 1 2 3 Selective Resource allocation in accordance Portfolio management Portfolio profitability analysis growth with profitability targets (customers and countries) Value for the client Value for ALD | LeasePlan Penetration target 2026 • One,
Slide 32: Managing our risks responsibly
Managing our risks responsibly
Slide 33: Sound risk management framework
Sound risk management framework Best debt credit Strong risk management foundations Prudent approach to risks ratings(1) Robust governance framework Residual value • Risk management by local teams, • Prudent residual value setting process involving challenged and validated by central teams local and
Slide 34: A strong framework to monitor our residual value risk
A strong framework to monitor our residual value risk throughout the asset’s life cycle 1 Contract origination 2 Contract life management • Residual value set at the entry of the asset onto the balance sheet, proposed by • Fleet revaluation process twice per year at vehicle level during contract to
Slide 35: Our financial trajectory
| 4, Our financial trajectory oO )
Slide 36: Strong historical performance boosted by favourable used car market
Strong historical performance further boosted by exceptionally favourable used car market since 2021 • Strong earnings profile supported by Exceptionally high share of reduction in depreciation costs (1) and UCS results (2) higher UCS results since 2021 in Gross operating income since 2021 ALD • Hig
Slide 37: Economic outlook and mobility sector anticipations 2023-2026
Anticipations for the 2023-2026 period Economic Mobility sector outlook dynamics • Inflation to remain high in 2023, • Sustained car leasing growth expected to gradually normalize in driven by structural shift from 2024 ownership to usership • Normalization of new car • Interest rates peaking in 202
Slide 38: Development supported by strong diversification of funding
Development supported by strong diversification of funding Target funding structure Strong retail deposits base Strong issuer profile Loans Best debt credit ratings(1) c.10% EUR 11bn Securitizations Bonds As at 30 June 2023 A1 A- A- 25% to 30% c. 10% Germany Established issuer on market, including g
Slide 39: Focus on ongoing PPA exercise and opening balance sheet
Focus on ongoing PPA(1) exercise and opening balance sheet PPA exercise Opening balance process sheet As per IFRS 3 “Business combinations”, Balance sheet: limited impact given the Purchase Price Allocation to be conducted similarities between ALD and LeasePlan’s within one year from acquisition to
Slide 40: Financial trajectory to 2026
Financial trajectory to 2026 Cost / Income Earning assets ROTE(2) (excl. UCS result) +6% c. 52% 13%-15% in 2026 CAGR 2023–2026 in 2026 -4 pts vs 2022(1) Strong business growth coupled Best-in-class efficiency Leading financial return with selective allocation of resources in the financial sector to
Slide 41: Improving our Cost / Income ratio
Improving our Cost / Income ratio (excl. Used Car Sales results) C/I ratio trajectory between 2022 and 2026 Best-in-class C/I ratio(2) 84% 56% (9%) 52% +10% (10%) +5% 66% 64% 60% 19 Rue Gaston de Caillavet, 75015 Paris 19 Rue Gaston de Caillavet, 75015 Paris 54% 52% 51% C. 1 C. 2 C. 3 C. 4 ALD 2026
Slide 42: 2025 C/I expected in November 2022 to 2026 C/I as expected today
2025 C/I expected in November 2022 to 2026 C/I as expected today +4% 52% 47% (1%) +5% (3%) (1) 2025 Cost / Income ratio Transactional impact Margin increase Overheads inflation Increased IT costs at 2026 Cost / Income ratio expected in November (inflation on car prices Leaseplan in 2022 and target 2
Slide 43: Capital targets
Capital targets CET 1 ratio Total Capital ratio Dividend payout(1) c. 12% c. 16% 50% 43 1. Of net income Group share, after deduction of interest on AT1 capital
Slide 44: Key takeaways
Sg Key takeaways a
Slide 45: A compelling investment case
A compelling investment case Leadership Sustainable Growth Efficiency 3.4m 428k Electric Vehicles fleet(1) largest multi-brand EV fleet(2) +6.0% EUR 440m One-stop shop <90g/km running fleet CO2 earning assets CAGR 2023-2026 annual run-rate synergies p.a. with the widest range of products, emissions
Slide 46: Key takeaways
Key takeaways Integration of Superior financial Leveraging on the LeasePlan fully on profile power of leadership track to shape the future of mobility • First objectives already achieved, • Proven earnings strength and • One-stop shop addressing all according to plan resilience through the cycle cli
Slide 47: Q&A session
6 Q&A session
Slide 48: Appendices
ee , Appendices ae
Slide 49: Tim Albertsen, Group Chief Executive Officer
Tim Albertsen Group Chief Executive Officer Steering ALD CEO Tim Albertsen has over 25 years’ experience in the leasing and fleet management industry. • Steering towards optimal suppliers / products After graduating in Business Administration from University of South Denmark and obtaining a post-gra
Slide 50: John Saffrett, Group Deputy Chief Executive Officer
John Saffrett Group Deputy Chief Executive Officer (DGD) Steering With a degree in IT and an MBA •from Nottingham Steering towardsTrent University, John Saffrett joined ALD in 1997, where his first role was in Sales optimal Account suppliers / Management for the company's subsidiary in the UK, later
Slide 51: Berno Kleinherenbrink, Group Deputy Chief Executive Officer
Berno Kleinherenbrink Group Deputy Chief Executive Officer (DGA) Steering Berno Kleinherenbrink has a Bachelor’s • Steeringdegree from Nijenrode Business School and an towards MBA from the Rotterdam Schooloptimal of Management. suppliers /He started his career in Amoco Oil Corporation and held sever
Slide 52: Patrick Sommelet, Group Chief Financial Officer
Patrick Sommelet Group Deputy Chief Executive Officer (DGA) & Group Chief Financial Officer Steering Patrick Sommelet began his career in 1993 • Steering at Credit Commercial de France where he towards was a trader on the bond andoptimal moneysuppliers markets./ In 1998, he joined the Financial Inst
Slide 53: Shareholder structure at June 2023
Shareholder structure(1) at 30 June 2023 Extended concert ADIA GIC PGGM Societe Generale Lincoln TDR ATP 52.6% 19.4% ELQ LPM(3) Others Societe Generale • Controlling shareholder(2) • Lock-up until September 2026 • Largest lender (senior and junior debt) Former shareholders of 11.5%(4) LeasePlan ALD
Slide 54: Deep dive in LeasePlan's integration
Deep dive in LeasePlan’s integration Oversight by Board of Directors 21 overlapping countries Strong Fortnightly program review by Executive Committee FR UK IT DE … governance Strong governance framework Integration Management Office c. 80 FTE framework Direct integration supervision by dedicated AL
Slide 55: 2022 illustrative combined income statement
2022 illustrative combined income statement(1) ALD LeasePlan Reported Entities held for Reduction in Non-recurring Adjusted Reported Reduction in Non-recurring Adjusted ALD + ALD + FY 2022(2) sale(3) depreciation items 2022 FY 2022 depreciation items 2022 LeasePlan LeasePlan costs costs adjusted nor
Slide 56: [-|ALD | iw
[-|ALD | iw