Slide 1: First Quarter 2019 Results
FIRST QUARTER 2019 RESULTS 03 May 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 GUIDANCE KEY STRATEGIC & SOLID FINANCIAL CONFIRMED COMMERCIAL INITIATIVES PERFORMANCE Total Fleet 1.68 million at end March 19 Stern Lease acquisition and partnership Leasing Contract & Services Margins up agreement in the Netherlands 4.7% in Q1 19 vs. Q1 18 Organi
Slide 4: Organic fleet growth guidance confirmed: 5-7% in 2019
ORGANIC FLEET GROWTH GUIDANCE CONFIRMED: 5-7% IN 2019 Total fleet at 1.68m vehicles > up 9.3% vs. end March 2018 Fleet evolution (‘000) > confirming ALD’s leading position in Europe 1,538 1,587 1,626 1,663 1,682 365 364 349 356 336 Organic total fleet growth guidance confirmed > Strong order ban
Slide 5: Fleet growth supported by market leading digital tools
FLEET GROWTH SUPPORTED BY MARKET LEADING DIGITAL TOOLS ‘End-to-end’ digital retail lease solution available in 11 markets Connected car implementation > Serving multiple sales channels: direct sales, partners, BtoBtoE > Together with telematics specialist Vinli, ALD is developing a market leadin
Slide 6: 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 7: Strategic and commercial initiatives
STRATEGIC AND COMMERCIAL INITIATIVES Stern Lease acquisition expected to boost total fleet International framework agreement with Chargepoint by 13K vehicles (0.8% of end 2018 total fleet) in FY > Roll out of a joint end-to-end EV solution across Europe 2019 > Reinforcing ALD’s EV coverage with
Slide 8: Continued improvement in operating leverage
CONTINUED IMPROVEMENT IN OPERATING LEVERAGE Leasing contract and Services margins together Operating leverage up 4.7% in Q1 19 vs. Q1 18 4-quarter rolling average > Ongoing focus on promotion of EV & hybrid in line with 51.1% ALD ambition > Repricing of Diesel residual value putting pressure on 50
Slide 9: Solid used car sales performance
SOLID USED CAR SALES PERFORMANCE Good demand for used cars supporting prices Car Sales Result Car Sales Result at EUR 19.0m in Q1 19, down vs. 434 417 EUR 29.6m in Q1 18, but up vs. EUR 17.1m in Q4 18 368 258 Volume of used cars sold(1) 74K in Q1 19, vs. 71K in 235 29.6 30.2 Q1 18 and 72K in Q
Slide 10: First quarter financial results
FIRST QUARTER FINANCIAL RESULTS Var. Q1 Var.% Q1 In EUR million Q1-2018 Q1-2019 '19 / '18( '19 / '18 Total fleet(1) (‘000 vehicles) 1,538 1,682 144 9.3% Impairment charges on receivables at Leasing contract margin 146.9 165.2 18.3 12.4% EUR 10.4m in Q1, down from Q3 and Q4 18 Services margin 152.2
Slide 11: 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 12: Appendix
APPENDIX 03/05/2019 12
Slide 13: Agenda 2019
AGENDA 2019 22 1 Q2 and H1 2019 results General assembly of shareholders MAY AUG 29 Detachment of the dividend 6 Trading update and Q3 results MAY NOV 31 Payment of the dividend MAY 03/05/2019 13
Slide 14: Quarterly series
QUARTERLY SERIES (in EUR million)1 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Leasing Contract Margin 146.9 163.0 156.1 157.8 165.2 Services Margin 152.2 148.9 152.6 163.0 148.1 Leasing Contract and Services Margins 299.1 311.9 308.6 320.8 313.3 Car Sales Result 29.6 30.2 25.7 17.1 19.0 Gross Operating
Slide 15: 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 16: A global footprint and leading position
A GLOBAL FOOTPRINT AND LEADING POSITION FLEET, MARKET SHARE AND RANKING BY COUNTRY AS AT 31/12/18 Market Market Western Europe Fleet Ranking CEE Fleet Ranking share share France 534,214 28% 1 Cz. Rep. 23,609 12%* 4* Germany 167,964 5% 5 Russia(3) 20,589 36%*(4) 1*(4) Italy 205,818 22%(1) 1(1) Hungar
Slide 17: 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: 50% (1) Become trusted Offer broad spectrum mobility provider of mobility solutions Greater flexibility and focus on core business Financing Registration & Delivery Maintenance
Slide 18: Continuing outsourcing trend
CONTINUING OUTSOURCING TREND KEY TRENDS European running vehicle Other(1) park 88% Purchase(2) (31/12/2017) 80% Corporate fleet growing 366m vehicles Corporate fleet FSL 8.6m vehicles faster than other 43.5m vehicles 12% 20% segments Increasing FSL: Fast growing Corporate the preferred market with
Slide 19: Electric and hybrid vehicles rising as diesel declines
ELECTRIC AND HYBRID VEHICLES RISING AS DIESEL DECLINES Evolution of breakdown(1) of deliveries (ALD) ALD encouraging powertrain shift by customers > RVs on diesel down / petrol up 6% 9% 15% > Consulting (Events, TCO calculation tools, Advisory) 21% 27% > New sales channels and products 32% The e
Slide 20: 2018 Balance Sheet
2018 BALANCE SHEET In EUR million Dec-18 Dec-17(1) Var '17/'18 Var % '17/'18 Earning Assets rose 12.8% during the year, Earning assets 19,101 16,930 2,171 12.8% underpinned by on-balance sheet fleet growth of o/w Rental fleet 18,424 16,336 2,088 12.8% 10.1% over same period o/w Financial lease rec
Slide 21: 2018 record year of debt issuance
2018 RECORD YEAR OF DEBT ISSUANCE 2018 public bond issuance totalled a record EUR 1.8bn Evolution of ALD funding structure (%) > First positive impact bond issued in October: EUR 500m 4-year senior > Replacing external bank loan (EUR 400m) 11% 9% 8% Securitisation transactions successfully renew