3AL Ayvens

Ayvens reports FY 2023 results

Press release

Ayvens1 reports FY 2023 results2

Paris, 8 February 2024

FY 2023 RESULTS

Earning assets3 up 14.2% vs. end December 2022, underpinned by the sharp increase in vehicle value

Leasing contract and Services margins at EUR 2,616.1 million, up 38.0% vs. 2022 and stable on a like-for-like basis4. Consolidation of LeasePlan, impact of reduction in depreciation costs (EUR +514.6 million) and marked to market (MtM) of hedging derivatives (EUR -186 million)

Used car sales (UCS) result per unit at EUR 2,4005 in 2023 (vs. EUR 3,269 in 2022). ALD’s UCS result per unit at EUR 1,312 after the impact of reduction in depreciation costs6, in line with guidance

Cost to income ratio7 at 63.7% vs. 53.2% in 2022

Net income (group share) at EUR 816.2 million, down 32.8% compared to exceptionally high 2022 base. Impact of normalization of used car market, MtM of derivatives, costs to achieve and LeasePlan Purchase Price Allocation

Return on Tangible Equity (ROTE) at 12.4% in 2023 vs. 26.4% in 2022

Earnings per share8 at EUR 1.07, vs. EUR 2.68 in 2022

Proposed dividend9 of EUR 0.47 per share (payout ratio of 50%10)

CET1 ratio at 12.5% as at end December 2023

Q4 2023 RESULTS

Leasing contract and Services margins at EUR 619.6 million, down 9.5% on a like for-like basis4. Negative impact of MtM of derivatives of LeasePlan (EUR -149.8 million) and pressure on margins

UCS result per unit5 at EUR 1,706, reflecting the normalization of the used car market, the 2023 impact of LeasePlan Purchase price Allocation accounted for in Q4 2023 (EUR -192.8 million) and the industry destocking of terminated vehicles

Cost to income ratio11 at 69.1% vs. 58.5% in Q4 2022

Net income (group share) at EUR 28.7 million, impacted by MtM of derivatives, pressure on margins, normalization of the used car market, industry destocking of terminated cars and amortization of the positive impact of PPA vs. exceptionally high EUR 284.7 million in Q4 2022

LEASEPLAN INTEGRATION WELL ON TRACK

2023 key milestones reached

Synergies and Costs to achieve confirmed

“2023 was marked by the acquisition of LeasePlan and our teams’ commitment to become one and to lay the foundations for the successful creation of the leading global sustainability mobility player. In our PowerUP 2026 plan, we defined our strategy to shape the future of our industry and achieve excellence around our 4 priorities: clients, operational efficiency, responsibility and profitability. This plan is supported by state-of-the-art technology as well as our new global mobility brand ‘Ayvens’. A few months into the integration, I am grateful for the unwavering commitment of our employees who maintained the highest standards of customer service while efficiently implementing our integration plan, which progresses according to schedule.

In the context of normalizing used car markets, higher inflation and volatile interest rates, Ayvens posted mixed financial results for a transition year, compared to an exceedingly high 2022 base, but confirmed its strong capital position. In accordance with our strategic plan, our teams are tackling these challenges head on and have undertaken decisive steps to restore our margins, reduce the volatility of our revenues and protect the value of our assets. I am confident that we can achieve this, thanks to our unique competitive position and proven agility, and that we will be able to see the benefits by the end of this year.”

FY 2024 GUIDANCE

In a slow-growth European economy (+0.5% expected in 2024) where inflation converges towards more normal levels (+2.4%) and interest rates begin to decline (ECB refinancing rate expected at 3.25% as at end 2024), Ayvens expects new car registrations to continue progressing compared to 2023 and the used car market to further normalize. As a result, Ayvens’ guidance for the full-year 2024 is as follows:

• Earning assets growth between +7% and +9% vs. end December 2023;
• UCS result per unit between EUR 1,100 and EUR 1,600 on average, excluding the negative impact of reduction in depreciation costs and PPA;
• Pre-tax P&L synergies of EUR 120 million (unchanged);
• Cost/income ratio excluding UCS results, non-recurring items and PPA: 65% to 67%;
• Costs to achieve (CTA) the integration of EUR 190 million (unchanged);
• Dividend payout of 50%12;
• CET1 ratio of c. 12%

LeasePlan integration well on track

The integration of LeasePlan progressed according to plan in 2023, paving the way for another key year of transformation in 2024. Ayvens confirms the generation of EUR 120 million pre-tax synergies in 2024, EUR 350 million in 2025 and annual run-rate synergies of EUR 440 million in 2026, alongside costs to achieve (CTA) of EUR 190 million in 2024 and EUR 37 million in 2025.

• Margin and procurement synergies

‘Ayvens’, the global mobility brand was launched immediately after the announcement of the PowerUP 26 strategic plan, uniting ALD and LeasePlan together under a single identity and highlighting the new brand promise. The Company has arranged for a single team to face those clients which were previously served by both entities, reflecting its commitment to offer a seamless service and ensuring the highest level of customer satisfaction. Other initiatives, in the field of procurement, insurance, remarketing and IT integration were launched swiftly, allowing to secure EUR 38 million cash synergies at the end of 2023, slightly better than expectations (EUR 30 million). These cash synergies will materialize in the P&L from 2024.

In addition to the alignment on pricing components and products, a number of common local and global tenders and negotiations are planned for 2024, e.g. OEM, tyre fitter, roadside assistance and end-of-life inspection.

• Cost synergies

2024 is a key milestone for Ayvens, with the start of the merger of local entities, scheduled for the second quarter of the year, followed by the deployment of the new central and local new organization structure and the local IT integration, expected to stretch into 2025.

Actions to restore profitability

In a structurally high-growth mobility market underpinned by clients’ shifting from ownership to usership, their requirement for full-service leasing solutions, their need for visibility over their costs and their commitment to reduce their carbon footprint, Ayvens is best positioned to provide value, as a multi-brand player offering the best-in-class product range and service quality. Bolstered by the acquisition of LeasePlan, its expertise and scale allow to lower clients’ total cost of mobility.

In the context of high inflation and interest rates which negatively impacted its margins, Ayvens’ strengths in a growing market are key to successfully implement its strategic plan to improve its profitability:

• Increased pricing discipline thanks to the timely update of pricing parameters, the activation/inclusion of indexation clauses in new contracts (e.g. inflation) along with the repricing of contract extensions and modifications in the context of higher interest rates;
• Capital allocation according to profitability targets, based on a full portfolio review: countries, client segments, distribution channels and products;
• Better service penetration and upselling, by expanding value added services to clients: Electric, Light Commercial Vehicles, insurance;
• Excellence in operational efficiency, by improving asset utilization (flexible fleet, terminated vehicles) and managing better the order book.

Used car market trends

As the leading global industry player, Ayvens supports the transition to more sustainable mobility. Out of 2.7 million funded fleet as at 31 December 2023, 11% were Battery Electric Vehicles (BEV), 9% were Plug-in hybrids (PHEV) while the rest was split between Internal Combustion Engine (ICE) and other powertrains13. The combination of stricter European regulations, clients’ interest in environmental matters and rising energy costs confirms that the transition to Electric Vehicles (EV) is structural. Ayvens primarily addresses corporate and SME clients, which are highly committed to reach their ESG targets through long-term leasing contracts (average duration of c. 4 years).

BEV benefits from the powerful combination of lower carbon emissions and competitive Total Cost of Ownership (TCO) in the most advanced countries14. However, the increase in new car deliveries and the better affordability are expected to have an impact on used car prices.

Meanwhile, the sustained shortage of used ICE and PHEV vehicles, together with drivers’ interest in flexibility until stricter regulations come into force and access to charging infrastructure and technology improve, are factors expected to support a gradual normalization of their used car markets.

Against this backdrop, the current BEV used car sales losses are in line with Ayvens’ fleet valuation assumptions. However, the Company has launched a number of actions to proactively manage its asset risk in a changing environment. Regarding the existing portfolio, prudent historical residual values on ICE are expected to allow offset future potential deterioration on EV used car prices.

Building an optimized digital platform

LeasePlan’s NGDA15 program was launched in 2019 to deliver a harmonized and standardized global digital architecture. The first phase of the program consisted of an initial rollout to three entities with the intention of then rolling out the platform across the rest of the group.

Following a strategic review of the program and with consideration for the existing global digital assets across the combined group, a decision has been made to stop new developments across the NGDA perimeter. A significant portion of the technology assets, most notably market facing with customers and suppliers will be retained and redeployed across all Ayvens entities in due course and going forward Ayvens will leverage the existing back-office systems of ALD which are modern and fit for purpose. The extension of Ayvens’ industrialized technology integration layer, already well used across the ALD legacy perimeter, will support the integration process and the accelerated deployment of the global digital platform from 2026 and beyond.

This new approach will allow the Company to significantly lower its capex (c. EUR -100 million between 2024 and 2026) and will result in a significant reduction in external IT contractors (c. -600 by end of 2024 vs May 2023). As a result of this digital strategy, Ayvens remains fully committed to deliver the optimum customer experience supported by best-in-class digital platforms leveraging the best talents and most powerful technology in the industry.

Q4 AND FY 2023 FINANCIAL RESULTS

Asset growth driven by sharp increase in vehicle value

Commercial activity remained strong, with earning assets up by 14.2% year-on-year16 to EUR 52.0 billion as at 31 December 2023. Growth was primarily driven by inflation on car prices and the transition to EV, which have a higher value than ICE cars.

Continuing the positive trends of the previous quarters, Ayvens’ total fleet stood at 3,420 thousand as at end December 2023, up by 3.0%16 compared to end December 2022, reflecting the dynamic demand for mobility services.

Full-service leasing contracts reached 2,709 thousand vehicles as at end December 2023, up 3.2%17 year-on-year, in line with the guidance of +2% to +4% funded fleet growth. Thanks to increased registrations of new cars, the order book continued its normalization from the peak observed at the end of 2022.

Fleet management contracts increased by +2.1%17 vs. December 2022, to reach 710 thousand vehicles.

EV penetration reached 35%17 of new passenger car registrations over 2023 (vs. European market at 23%18 in 2023), of which 38% in Q4 2023 alone. Ayvens’ BEV and PHEV penetration stood at 21% and 13% respectively in 2023.

Purchase Price Allocation (PPA) impacts

The allocation of LeasePlan’s purchase price to acquired assets and assumed liabilities as at the date of acquisition closing (22 May 2023) led Ayvens to revise upwards the value of LeasePlan’s net assets19 by c. EUR 230 million, as a result of the assessment of LeasePlan’s assets and liabilities at fair value20:

• Lease assets c. EUR +380 million;
• Customer relationship c. EUR +150 million21;
• Software c. EUR -200 million;
• Other assets and liabilities c. EUR -100 million.

LeasePlan’s Purchase Price Allocation had a EUR -57.2 million impact on Ayvens’ 2023 income statement, primarily due to higher rental fleet depreciation as a result of the lease assets’ upwards valuation, whose impact is partially offset by lower software amortization and the recognition of LeasePlan’s actual Used Car Sales results. Beyond 2023, Ayvens expect a limited impact on the income statement, if actual sales prices are in line with its PPA assumptions.

Subject to any final Purchase Price Allocation and/or acquisition price adjustment within one year from closing22, the goodwill recognized on the acquisition was reduced by c. EUR 220 million23 to c. EUR 1,390 million. This had a positive impact on the CET1 capital of c. EUR 220 million, in line with previous indications.

Reported performance (post PPA, including LeasePlan from 22 May 2023)

	FY 2023	FY 2022		Q4 202324	Q4 2022
In EUR million
Total contracts ('000)	3,420	1,806		3,420	1,806
Full service leasing contracts	2,709	1,464		2,709	1,464
Fleet management contracts	710	342		710	342
In EUR million
Leasing contract margin	1,261.9	1,181.2		167.3	428.1
Services margin	1,354.2	715.1		452.3	197.3
Leasing contract & Services margins	2,616.1	1,896.2		619.6	625.5
Used car sales result	349.5	747.6		(9.8)	123.9
Gross Operating Income	2,965.6	2,643.9		609.9	749.4
Total operating expenses	(1,591.6)	(882.7)		(510.8)	(259.6)
Cost / Income ratio excl. UCS	60.8%	46.5%		82.4%	41.5%
Cost of risk	(70.7)	(46.1)		(24.4)	(13.8)
Non-recurring income (expenses)	(14.1)	(50.6)		(18.7)	(50.6)
Operating result	1,289.3	1,664.5		56.0	425.4
Share of profit of associates and jointly controlled entities	6.4	1.7		1.6	0.3
Profit before tax	1,295.7	1,666.1		57.6	425.7
Income tax expense	(374.0)	(446.0)		(18.3)	(138.8)
Result from discontinued operations	(77.6)	0.0		(0.2)	0.0
Non-controlling interests	(27.9)	(4.7)		(10.4)	(2.1)
Net Income group share	816.2	1,215.5		28.7	1.7

The following comments apply to actual (reported) figures, where:

• LeasePlan is consolidated from 22 May 2023, ALD Russia is deconsolidated from 20 April 2023, while ALD’s subsidiaries in Portugal, Ireland, Norway (except NF Fleet) and LeasePlan’s subsidiaries in Czech Republic, Finland and Luxembourg are deconsolidated from 1 August 2023;
• LeasePlan’s Purchase Price Allocation is applied from acquisition date, i.e. 22 May 2023. The 2023 impact is fully accounted for in Q4 2023.

In a normalizing used car market and after the amortization of PPA, Ayvens recorded a modest Q4 2023 financial performance against a high Q4 2022 base, which was driven by exceptionally high used car prices.

Leasing contract margins and Services margins

Taken together, Leasing contract and Services margins (Total margins) reached EUR 2,616.1 million in 2023, an increase of 38.0% compared to 2022. Out of this amount, the contribution of LeasePlan since the acquisition closing was EUR 893.8 million25.

Leasing contract margin was boosted by the reduction in depreciation costs26 at ALD (EUR +514.6 million vs. EUR +350.3 million in 2022). As a result of continued high estimated used car prices, depreciation has been adjusted or stopped for those vehicles whose sales proceeds are forecast to be in excess of their net book value. The reduction in depreciation costs equals the difference between the contractual amortization costs and the revised amortization cost. It anticipates in the Leasing contract margin part of Used car sales results which would otherwise be recorded later.

Leasing contract margin was negatively impacted by the marked to market (MtM) of derivatives for EUR - 186.0 million in 2023, due to the decrease in interest rates and the pull to par of the derivatives book. The stock of MtM of derivatives was EUR +78 million as at 31 December 2023.

Ayvens holds a book of derivatives, initially from LeasePlan, whose purpose is to hedge the interest and foreign exchange rates exposure, when the profile of funding cannot be matched with that of the lease contract portfolio. While the Company is economically hedged, there can be accounting mismatches as operating leases do not qualify for hedge accounting under IFRS rules and hence associated derivatives (receiver of floating rates) are fair valued through income statement. MtM of derivatives results from interest rate movements (e.g. as net receiver of floating rate, positive MtM when interest rates rise) and reverses towards the derivative’s maturity (pull to par). In Q4 2023, the Company de-designated the micro-fair value hedging (MFVH) relation of the swaps (payer or floating rates) associated with bond issues. As a result, Ayvens improved the compensation of fair values in its derivatives portfolio. Consequently, the sensitivity of the derivatives portfolio27 to a +10 / -10 bps parallel shift (without impact of convergence to par) decreased to EUR +10m/EUR -10m in the income statement.

Other non-operating items impacting Leasing contract margin totalled EUR +77.8 million (vs. EUR +128.4 million in 2022):

• Fleet revaluation of EUR +38.6 million vs. EUR +72.2 million in 2022;
• Hyperinflation in Turkey EUR +39.2 million vs. EUR +59.9 million in 2022. The hyperinflation regime in Turkey is likely to create revenues volatility over the coming months;
• There was no adjustment to the provision in Ukraine in 2023 (vs. a EUR -3.6 million provision in 2022).  

Ayvens’ Q4 202328 total margins came in at EUR 619.6 million, stable vs. Q4 2022 despite the contribution of LeasePlan (EUR 351.2 million29), due to: i) lower reduction in depreciation costs (EUR +88.9m vs EUR +220.3m in Q4 2022), ii) the negative impact of MtM derivatives for EUR -137.4 million, iii) pressure on margins and iv) hyperinflation in Turkey of EUR -26.5 million vs. EUR +3.4 million in Q4 2022, reflecting the deviation between used cars prices and the general prices index in a hyperinflated country.

Used car sales (UCS) results

Ayvens’ 2023 UCS result reached EUR 349.5 million, lower than last year’s exceptionally high level of EUR 747.6 million, as a result of:

• The normalization of the used car market;
• The negative impact of reduction in depreciation costs in previous quarters: EUR -536.1 million, (of which EUR -312.2 million for ALD and EUR -223.9 million for LeasePlan30) vs. EUR -110.9 million in 2022);
• Industry destocking of terminated vehicles to improve operating efficiency and;
• The impact of LeasePlan PPA (EUR -192.8 million since 22 May 2023).

Ayvens’ UCS result per unit31 excluding the negative impact of reduction in depreciation costs and PPA came in at EUR 2,400 per unit in 2023 on total volumes of 449 thousand cars sold, vs. EUR 3,269 per unit on 263 thousand cars sold in 2022.

ALD’s UCS result per unit32 including the negative impact of reduction in depreciation costs in previous quarters was EUR 1,312 per unit in 2023 (in line with the guidance of EUR 1,200-1,600 guidance provided earlier) vs. EUR 2,846 per unit in 2022. Had ALD not recorded any reduction in depreciation costs to reflect exceptionally high used car prices in previous quarters, UCS result per unit would have stood at EUR 2,344 in 2023 (compared to EUR 3,269 in 2022).

As at 31 December 2023, Ayvens’ stock of reduction in depreciation costs yet to be reversed over the coming years was EUR 622.0 million (of which EUR 331.3 million to be reversed in 2024) hence having a negative impact on future UCS profits. Out of this amount, ALD’s stock of reduction in depreciation costs yet to be reversed over the coming years was EUR 441.8 million a at 31 December 2023, of which EUR 235.1 million to be reversed in 2024.

Consequently, Ayvens’ Gross Operating Income (GOI) reached EUR 2,965.6 million in 2023, up 12.2% vs. 2022. The impact of reduction in depreciation costs, net of the negative impact on UCS results was EUR +202.4 million on GOI over the full year (vs. EUR +239.4 million in 2022).

Ayvens’ UCS results came in at EUR -9.8 million in Q4 2023 (vs. EUR +123.9 million in Q4 2022), impacted by: i) the normalization of the used car market, ii) the negative impact from reduction costs in previous quarters (EUR -86.3 million in ALD and EUR -223.9 million in LeasePlan’s balance sheet at the closing of the transaction), iii) the industry destocking of terminated vehicles and iv) the amortization of LeasePlan’s positive PPA (EUR - 192.8 million PPA impact since 22 May 2023, fully allocated to Q4 2023). Excluding the impact of reduction in depreciation costs and PPA, Ayvens’ UCS result per unit, stood at EUR 1,706 in Q4 2023, compared to EUR 3,054 in Q4 2022. ALD’s UCS result per unit excluding the impact of reduction in depreciation costs amounted to EUR 1,453 in Q4 2023.

Operating expenses

Operating expenses amounted to EUR 1,591.6 million in 2023, up from EUR 882.7 million in the same period last year, mainly driven by LeasePlan’s contribution from 22 May 2023 onwards for EUR 651.1 million, costs to achieve of EUR 170.0 million (vs. EUR 128.0 million in 2022) as well as the cost of being regulated.

In Q4 2023, Ayvens’ operating expenses amounted to EUR 510.8 million, up from EUR 259.6 million in the same period last year, mainly due to the consolidation of LeasePlan (EUR 285.7 million). CTA accounted for EUR 45.0 million in the quarter (vs. EUR 44.3 million in Q4 2022).

As a result, the Cost/Income ratio (excl. UCS result) stood at 60.8% in 2023 vs. 46.5% in 2022 (82.4% in Q4 2023, vs. 41.5% in Q4 2022).

Cost of risk

Impairment charges on receivables came in at EUR 70.7 million in 2023, compared to EUR 46.1 million in 2022. The cost of risk33 remained low at 18 bps (19 bps in Q4 2023) compared to 20 bps in 2022.

Net income

Non-recurring result came in at EUR -14.1 million in 2023, driven by a goodwill impairment on Fleetpool, the subscription subsidiary in Germany, for EUR 23.7 million. Last year’s non-recurring result was related to the impairment of ALD Russia and ALD Belarus for EUR -50.6 million.

Income tax expense decreased to EUR 374.0 million, down from EUR 446.0 million in 2022. The effective tax rate increased to 28.9% from 26.8% in 2022, due to non-deductible non-recurring expenses and the taxation of intra-group operations.

Result from discontinued operations amounted to EUR -77.6 million, mainly driven by the loss from the disposal of ALD Russia on 20 April 2023, which was only partially offset by the gain on the sale of ALD’s entities in Portugal, Ireland and Norway on 1 August 2023.

Non-controlling interests were EUR -27.9 million compared to EUR -4.7 million in 2022. The increase is due to the consolidation of LeasePlan, whose AT1 coupon payments to third parties are accounted for as non-controlling interests.

Ayvens’ net income group share reached EUR 816.2 million in 2023, down by 32.8 % from the exceptionally high base of EUR 1,215.5 million in 2022. It was EUR 28.7 million in Q4 2023, down by 89.9% compared to EUR 284.7 million in Q4 2022, mainly on the back of the normalization of the used car market, lower reduction in depreciation costs, the negative marked-to-market on derivatives and the 2023 impact of PPA which was fully allocated to Q4 2023.

Diluted Earnings per share34 was EUR 1.07 vs. EUR 2.68 in 2022.

The Return on Average Earning Assets35 decreased to 2.0% in 2023 from the exceptionally high level of 5.1% in 2022 which was lifted by exceedingly favourable used car prices.

The Return on Tangible Equity (ROTE) came in at 12.4% in 2023, down from 26.4% in 2022. ROTE was 0.6% in Q4 2023 vs. 23.5% in Q4 2022.

Like-for-like performance

For illustration purposes, management information is provided in appendix to assess the like-for-like performance of Ayvens:

• Q4 and FY 2023 with LeasePlan included over the full period (whereas LeasePlan was consolidated from 22 May 2023 only);
• Q4 and FY 2022 with LeasePlan included over the full period (whereas LeasePlan was consolidated from 22 May 2023 only and hence not consolidated in the reported Q4 and FY 2022 figures);
• Q4 2022, FY 2022, Q4 2023 and FY 2023 without ALD’s subsidiaries in Russia, Belarus, Portugal, Ireland, Norway (except NF Fleet), LeasePlan’s subsidiaries in Czech Republic, Finland and Luxembourg (whereas they were actually deconsolidated on 20 April 2023 and 1 August 2023 respectively);
• LeasePlan’s Purchase Price Allocation (PPA) impacts included from acquisition closing date, ie 22 May 2023.

These illustrative 2022 and 2023 income statements should not be considered as representative of the results which the combined Group would have achieved, nor of future results. Actual results may differ significantly from those reflected in these illustrative income statements for several reasons, including, but not limited to, differences in actual conditions compared to the assumptions used to prepare these illustrative income statements.

Total margins (Leasing contract margin and services margin) excluding reduction in depreciation costs, non-operating items and PPA impact would have been EUR 2,803.5 million in 2023, stable vs. 2022 (EUR 2,823.0 million) on a like-for-like basis.

Pressure on margins36 expressed as a % of average earning assets was observed in 2023, due to high inflation and interest rates, which could not be fully transferred to customers and contract extensions in a context of delayed car deliveries. This pressure is expected to reverse from the second half of 2024, due to the length of the order book, as Ayvens implements the aforementioned plan to improve its margins.

Used car sales profit excluding the impact of the reduction in depreciation costs and PPA impact would have decreased by 11.4% from 2022, at EUR 1,343.2 million, on the back of the normalization of the used car market at a still high level and exceptional accelerated sale of terminated vehicles at the end of 2023.

Gross operating income excluding non-recuring items and PPA impact would have been down by 4.4% vs 2022, at EUR 4,146.7 million.

Operating expenses excluding non-recurring items and PPA impact would have amounted to EUR 1,791.8  million in 2023, an increase of 10.5% vs. 2022. The Cost/Income ratio, excluding non-recurring items and PPA impact would have reached 63.9% vs. 57.4% in 2022, mainly due to costs of being regulated and almost stable margin revenues.

In Q4 2023, total margins excluding reduction in depreciation costs, non-operating items and PPA impact would have been EUR 658.7 million, down 9.5% compared to Q4 2022 on a like-for-like basis. Used car sales result before the impacts of reduction in depreciation costs and PPA would have been up by 32.6% vs. Q4 2022, due to the allocation to the Q4 2023 income statement, of LeasePlan’s used car sales results since the acquisition closing, while Gross operating income excluding non-recurring items and PPA impact would have been EUR 1,151.9 million, up by 4.7% compared to Q4 2022. Operating expenses excluding non-recurring items and PPA impact would have been stable (+1.7%) at EUR 454.8 million vs. Q4 2022, while the Cost/Income ratio excluding non-recurring items and PPA impact would have reached 69.1%, up 7.7 percentage points vs. 2022.

Shareholder distribution

The Board of Directors has decided to propose to the General Meeting of Shareholders to distribute a dividend of EUR 0.47 per share in respect of the 2023 financial year, compared to EUR 1.06 the previous year. This amount corresponds to Ayvens’ PowerUP 2026 objective of paying 50% of net income group share37 to its shareholders. Conditional on this approval, the dividend will be detached on 31 May 2024 and paid on 4 June 2024.

BALANCE SHEET AND REGULATORY CAPITAL

Financial structure

Group shareholders’ equity38 totalled EUR 10.1 billion as at 31 December 2023 (vs. EUR 6.9 billion as at 31 December 2022). Net asset value per share was EUR 12.33 and net tangible asset value per share was EUR 9.03 as at 31 December 2023.

Total balance sheet increased from EUR 31.3 billion as at 31 December 2022 to EUR 70.3 billion as at 31 December 2023, on the back of the integration of LeasePlan and the increase in earning assets, underpinned by the continued growth of EVs which have a higher value.

Earning assets continued to grow strongly, reaching EUR 52.0 billion as at 31 December 2023, vs. EUR 23.9 billion a year ago.

Financial debt39 stood at EUR 37.6 billion at the end of December 2023 (vs. EUR 19.9 billion at the end of December 202240), while deposits reached EUR 11.8 billion. 33% of the financial debt consisted of loans from Societe Generale as at end 2023.

As part of its active liquidity management strategy, Ayvens continued to diversify its funding by issuing a EUR 500 million senior preferred bond in November 2023. The funding raised during Q4 2023 brings bonds issued over the full year to total EUR 4.35 billion and confirms the market’s strong appetite for Ayvens debt instruments. Ayvens has a EUR 4 billion to EUR 5 billion funding program planned for 2024. This program is well advanced: including the pre-funding in 2023, c. 40% of the program are already achieved.

The combined entity has access to ample short-term liquidity, with cash holdings at Central bank reaching EUR 3.5 billion and an undrawn committed Revolving Credit Facility of EUR 1.375 billion in place.

The Company has strong long-term credit ratings from Moody’s (A1), S&P Global Ratings and Fitch Ratings (A-), which were upgraded to the single A category upon the acquisition of LeasePlan.

Regulatory capital

Ayvens’ risk-weighted assets (RWA) totalled EUR 57.4 billion as at 31 December 2023 under CRR2/CRD5 rules, with credit risk-weighted assets accounting for 85% of the total. The 2.5% increase compared to 30 September 2023 is mainly explained by organic growth (earning assets growth and reduction in order book: EUR +1 billion) and the annual update of operational risk related RWA (+EUR 0.6 billion).

Ayvens had a Common Equity Tier 1 ratio of 12.5% and Total Capital ratio of 16.4% as at 31 December 2023 (compared to 12.3% and 16.3% respectively as at 30 September 2023).

CONFERENCE CALL FOR INVESTORS AND ANALYSTS

• Date: 8 February, at 10.00 am Paris time – 9.00 am London time
• Speakers: Tim Albertsen, CEO / John Saffrett, Deputy CEO / Patrick Sommelet, Deputy CEO and CFO

CONNECTION DETAILS

• Webcast: Click https://edge.media-server.com/mmc/p/5qusow9i
• Conference call:
  • FR: +33 1 70 91 87 04
  • UK: +44 121 281 8004
  • US: +1 718 705 8796
  • Access code: 457698

AGENDA

• 3 May 2024: Q1 2024 results
• 14 May 2024: General assembly of shareholders
• 31 May 2024: Dividend detachment
• 4 June 2024: Dividend payment
• 1 August 2024: Q2 and H1 2024 results

About Ayvens
Ayvens is the leading global sustainable mobility player committed to making life flow better. We’ve been improving mobility for decades, providing full-service leasing, flexible subscription services, fleet management and multi-mobility solutions to large international corporates, SMEs, professionals and private individuals.		With 15,700 employees across 43 countries, 3.4 million vehicles and the world’s largest multi-brand EV fleet, we’re leveraging our unique position to lead the way to net zero and spearhead the digital transformation of the mobility sector. The company is listed on Compartment A of Euronext Paris (ISIN: FR0013258662; Ticker: ALD). Societe Generale Group is Ayvens majority shareholder.Find out more at ayvens.com

 

Press Contacts
Stephanie JonvilleChief Communications OfficerTel: +33 (0)6 46 14 81 90stephanie.jonville@ayvens.com

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. This presentation and its content may not be reproduced or distributed or published, directly or indirectly, in whole or in part, to any other person for any purpose without the prior written permission of the Company.

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This document contains forward-looking statements relating to the targets and strategies of the Company. These forward-looking statements are based on a series of assumptions, both general and specific, in particular the application of accounting principles and methods in accordance with IFRS (International Financial Reporting Standards) as adopted in the European Union. These forward-looking statements have also been developed from scenarios based on a number of economic assumptions in the context of a given competitive and regulatory environment. The Company may be unable to:

• anticipate all the risks, uncertainties or other factors likely to affect its business and to appraise their potential consequences;
• evaluate the extent to which the occurrence of a risk or a combination of risks could cause actual results to differ materially from those provided in this document and the related presentation.

Therefore, although the Company believes that these statements are based on reasonable assumptions, these forward-looking statements are subject to various risks and uncertainties, including matters not yet known to it or its management or not currently considered material, and there can be no assurance that anticipated events will occur or that the objectives set out will actually be achieved. Important factors that could cause actual results to differ materially from the results anticipated in the forward-looking statements include, among others, overall trends in general economic activity and in the Company’s markets in particular, regulatory and prudential changes, and the success of the Company’s strategic, operating and financial initiatives. Unless otherwise specified, the sources for the business rankings and market positions are internal.

Other than as required by applicable law, the Company does not undertake any obligation to update or revise any forward-looking information or statements, opinion, projection, forecast or estimate set forth herein. More detailed information on the potential risks that could affect the Company’s financial results can be found in the 2022 Universal Registration Document filed with the French financial markets authority (Autorité des marchés financiers).

Investors are advised to take into account factors of uncertainty and risk likely to impact the operations of the Company when considering the information contained in such forward-looking statements. To the maximum extent permitted by law, none of the Company or any of its affiliates, directors, officers, advisors and employees shall bear any liability (in negligence or otherwise) for any direct or indirect loss or damage which may be suffered by any recipient through use or reliance on anything contained in or omitted from this document and the related presentation or any other information or material arising from any use of these presentation materials or their contents or otherwise arising in connection with these materials.

The estimated unaudited consolidated financial information presented for the year ending 31 December 2023 was reviewed by the Board of Directors on 7 February 2023 and has been prepared in accordance with IFRS as adopted in the European Union and applicable at this date. The audit procedures carried out by the Statutory Auditors on the consolidated financial statements are in progress. The Company’s consolidated financial statements for the year ending 31 December 2023 are expected to be closed by the Board of Directors by end March 2024.

By receiving this document and/or attending the presentation, you will be deemed to have represented, warranted and undertaken to have read and understood the above notice and to comply with its contents.

Appendix

CONSOLIDATED INCOME STATEMENT

in EUR million	Q4 2023	Q4 202241	Q Var.	FY 2023	FY 2022	FY Var.
Leasing contract revenues	2,599.8	1,231.8	111.1%	8,033.7	4,803.9	67.2%
Leasing Contract Costs - Depreciation	(1,933.1)	(725.8)	166.3%	(5,685.7)	(3,433.1)	65.6%
Leasing Contract Costs - Financing	(437.3)	(84.1)	419.8%	(1,044.7)	(244.1)	327.9%
Unrealised Gains/Losses on Financial xxInstruments	(62.1)	6.3	na	(41.4)	54.5	na
Leasing Contract Margin	167.3	428.1	-60.9%	1,261.9	1,181.2	6.8%
Services Revenues	1,376.4	744.5	84.9%	4,391.2	2,657.4	65.2%
Cost of Services Revenues	(924.1)	(547.2)	68.9%	(3,037.0)	(1,942.3)	56.4%
Services Margin	452.3	197.3	129.2%	1,354.2	715.1	89.4%
Leasing Contract and Services Margins	619.6	625.5	-0.9%	2,616.1	1,896.2	38.0%
Proceeds of Cars Sold	2,104.3	963.8	118.3%	6,458.8	3,953.6	63.4%
Cost of Cars Sold	(2,114.1)	(839.9)	151.7%	(6,109.3)	(3,205.9)	90.6%
Used Car Sales result	(9.8)	123.9	-107.9%	349.5	747.6	-53.2%
Gross Operating Income	609.9	749.4	-18.6%	2,965.6	2,643.9	12.2%
Staff Expenses	(301.8)	(147.4)	104.7%	(936.1)	(517.8)	80.8%
General and Administrative Expenses	(165.5)	(92.2)	79.6%	(519.5)	(298.1)	74.2%
Depreciation and Amortisation	(43.5)	(20.0)	117.5%	(136.0)	(66.7)	103.8%
Total Operating Expenses	(510.8)	(259.6)	96.8%	(1,591.6)	(882.7)	80.3%
Cost/Income ratio (excl UCS)	82.4%	41.5%	98.6%	60.8%	46.5%	30.7%
Impairment Charges on Receivables	(24.4)	(13.8)	76.9%	(70.7)	(46.1)	53.1%
Other income	7.2	0.0		11.8	0.0
Non-Recurring Income (Expenses)	(25.9)	0.0		(25.8)	(0.0)
Operating Result	56.0	425.4	-86.8%	1,289.3	1,664.5	-22.5%
Share of Profit of Associates and Jointly xxControlled Entities	1.6	0.3	471.5%	6.4	1.7	283.7%
Profit Before Tax	57.6	425.7	-86.5%	1,295.7	1,666.1	-22.2%
Income Tax Expense	(18.3)	(138.8)	-86.8%	(374.0)	(446.0)	-16.1%
Result from discontinued operations	(0.2)	0.0		(77.6)	0.0
Profit for the Period	39.1	286.9	-86.4%	844.1	1,220.2	-30.8%
Net income	39.1	286.9	-86.4%	844.1	1,220.2	-30.8%
Non-controlling interests	10.4	2.1	387.1%	27.9	4.7	494.9%
Net income group share	28.7	284.7	-89.9%	816.2	1,215.5	-32.8%

DETAILS OF OPERATING INCOME COMPONENTS IN REPORTED P&L

		Q4 2022(1)		Q4 2023		FY 2022(1)		FY 2023
In EUR million		ALD		Ayvens		ALD		Ayvens
Leasing contract margin
o/w Reduction in depreciation costs		220.3		88.9		350.3		514.6
o/w Non operating items		37.3		(145.7)		126.6		(108.3)
Fleet revaluation		12.5		18.2		72.2		38.6
Hyperinflation in Turkey		3.4		(26.5)		59.9		39.2
Provision in Ukraine		21.4		0.0		(3.6)		(0)
MtM of derivatives		(0.0)		(137.4)		(1.8)		(186.0)
o/w PPA		0		17.7		0		17.7
o/w Tier 2 cost				(27.8)		-		(65.6)
Operating expenses
o/w Cost to achieve		(44.3)		(45.0)		(128.0)		(170.0)
o/w Transaction and rebranding costs		0.0		(21.4)		0.0		(36.2)

1. Restated for IFRS 17, which applies from 1 January 2023

BALANCE SHEET AS AT 31 DECEMBER 2023

In EUR million	31 December 2023	31 December 2022(1)
Earning assets	52,025	23,943
o/w Rental fleet	49,765	23,227
o/w Financial lease receivables	2,260	716
Cash & Cash deposits with the ECB	3,997	253
Intangibles (incl. goodwill)	2,695	745
Operating lease and other receivables	8,796	3,514
Other	2,748	1,762
Assets of disposal group classified as held-for-sale	0	1,085
Total assets	70,261	31,302
Group shareholders' equity	10,826	6,876
o/w Group shareholders’ equity excl. AT1	10,076	6,876
Tangible shareholders’ equity	7,362	6,146
o/w AT1(2)	750	0
Non-controlling interests	526	37
o/w non controlling interests excl. AT1	28	37
o/w non controlling interests - AT1(3)	498	0
Total equity	11,352	6,912
Deposits	11,785	0
Financial debt	37,627	19,874
Trade and other payables	6,035	2,929
Other liabilities	3,463	1,360
Liabilities of disposal group classified as held-for-sale	0	227
Total liabilities and equity	70,261	31,302
Restated for initial application of IFRS 17 “Insurance Contracts” to insurance subsidiaries from 1 January 2023 AT1 issued by ALD and subscribed by parent Societe Generale AT1 issued by LeasePlan and subscribed by external parties

EARNINGS PER SARE (EPS) AND DIVIDEND PER SHARE (DPS)

Basic EPS	FY 2023	FY 2022
Existing shares	816,960,428	565,745,096
Shares allocated to cover stock options and shares awarded to staff	-1,114,336	-1,045,448
Treasury shares in liquidity contracts	-154,551	-128,454
End of period number of shares	815,691,541	564,571,194
Weighted average number of shares used for EPS calculation(1) (A)	711,058,063	451,995,288
in EUR million
Net income group share	816.2	1,215.5(2)
Deduction of interest on AT1 capital	-45.0	0.0
Net Income group share after deduction of interest on AT1 capital (B)	771.2	1,215.5
		.
Basic EPS (in EUR) (B/A)	1.08	2.69
DPS (in EUR)	0.47	1.06
Diluted EPS	FY 2023	FY 2022
Existing shares	816,960,428	565,745,096
Shares issued for no consideration(3)	18,216,718	0
End of period number of shares	835,177,146	565,745,096
Weighted average number of shares used for EPS calculation(1) (A’)	722,913,792	453,169,190
Diluted EPS (in EUR) (B/A’)	1.07	2.68
Average number of shares weighted by time apportionment Restated for IFRS 17, which applies from 1 January 2023 Assuming exercise of warrants, as per IAS 33

Return on tangible equity (ROTE)

in EUR million	Q4 2023	Q4 2022		FY 2023	FY 2022
Group shareholders' equity	10,826.1	6,875.5		10,826.1	6,875.5
AT1 capital	(750.0)	0.0		(750.0)	0.0
Dividend provision and interest on AT1 capital(1)	(422.8)	(598.8)		(422.8)	(598.8)
OCI excluding conversion reserves	24.3	(35.5)		24.3	(35.5)
Equity base for ROE calculation end of period	9,677.6	6,241.2		9,677.6	6,241.2
Goodwill	1,990.9	618.6		1,990.9	618.6
Intangible assets	703.9	126.6		703.9	126.6
Average equity base for ROE calculation	9,680.6	5,596.4		7,959.4	5,311.3
Average Goodwill	(2,191.7)	(624.8)		(1,304.7)	(597.3)
Average Intangible assets	(651.2)	(116.7)		(415.3)	(107.7)
Average tangible equity for ROTE calculation	6,837.7	4,854.9		6,239.4	4,606.3
Group net income after non-controlling interests	28.7	284.7		816.2	1,215.5
Interest on AT1 capital	(18.5)	0.0		(45.0)	0.0
Adjusted Group net income	10.2	284.7		771.2	1,215.5
ROTE	0.6%	23.5%		12.4%	26.4%
The dividend provision assumes a payout ratio of 50% of net Income group share, after deduction of interest on AT1 capital

CRR2/CRD5 prudential capital ratios and Risk Weighted Assets

in EUR million	31 December 2023	30 September 2023	30 June 2023
Group shareholder’s equity	10,826	10,841	10,585
AT1 capital	-750	(750)	(750)
Dividend provision & interest on AT1 capital(1)	(423)	(399)	(280)
Goodwill and intangible	(2,695)	(2,991)	(2,925)
Deductions and regulatory adjustments	183	196	153
Common Equity Tier 1 capital	7,141	6,897	6,783
AT1 capital	750	750	750
Tier 1 capital	7,891	7,648	7,533
Tier 2 capital	1,500	1,500	1,500
Total capital (Tier 1 + Tier 2)	9,391	9,148	9,033
Risk-Weighted Assets	57,377	56,002	54,293
Credit Risk Weighted Assets	49,034	48,097	46,039
Market Risk Weighted Assets	1,993	2,362	2,558
Operational Risk Weighted Assets	6,350	5,543	5,696
Common Equity Tier 1 ratio	12.5%	12.3%	12.5%
Tier 1 ratio	13.8%	13.7%	13.9%
Total Capital ratio	16.4%	16.3%	16.6%
The dividend provision assumes a payout ratio of 50% of Net Income group share, after deduction of interest on AT1 capital

Tangible book value per share

in EUR million	31 December 2023	30 September 2023	30 June 2023
Group shareholders' equity	10,826	10,841	10,585
Deeply subordinated and undated subordinated notes	(750)	(750)	(750)
Interest of deeply subordinated and undated subordinated notes (1)	(37)	(19)	(0)
Book value of treasury shares	18	18	18
Net Asset Value (NAV)	10,057	10,091	9,853
Goodwill	(1990.9)	(2,392)	(2,363)
Intangible assets	(703.9)	(598)	(562)
Net Tangible Asset Value (NTAV)	7,362	7,100	6,928
Number of shares (1)	815,691,541	815,699,794	815,705,590
NAV per share	12.33	12.37	12.08
NTAV per share	9.03	8.70	8.49
The number of shares considered is the number of ordinary shares outstanding at end of period, excluding treasury shares and buyback

LIKE-FOR-LIKE PERFORMANCE

LIKE-FOR-LIKE MARGINS

			FY 2022				FY 2023				Variation				Variation %
In EUR million			ALD	LeasePlan	Ayvens		ALD	LeasePlan	Ayvens		ALD	LeasePlan	Ayvens		ALD	LeasePlan	Ayvens
Leasing contract and services margins			1,817.7	2,230.4	4 048.0		1,902.3	1,500.5	3,403.1		84.9	-729.9	-645.0		4.7%	-32.7%	-15.9%
Reduction in depreciation costs			350.3	435.0	785.3		514.6	177.9	692.5		164.3	-257.1	-270.7
Fleet revaluation			72.2	0.0	72.2		38.6	0.0	38.6		-33.6	0.0	-33.6
Hyperinflation in Turkey			59.9	66.0	125.9		24.1	35.0	59.1		-35.7	-31.0	-66.7
Ukraine provision			-3.6	0.0	-3.6		0.0	0.0	0.0		3.6	0.0	3.6
MtM of derivatives			-1.8	247.0	245.2		15.8	-224.2	-208.4		17.6	-471.2	-453.6
PPA impact			0.0	0.0	0.0		0.0	17.7	17.7		0.0	17.7	17.7
Underlying leasing contract and services margins (excluding reduction in depreciation costs, non-operating items and PPA impact)			1,340.7	1,482.4	2,823.0		1,309.5	1,494.0	2,803.5		-31.3	11.6	-19.6		-2.3%	0.8%	-0.7%

 

			Q4 2022				Q4 2023				Variation				Variation %
In EUR million			ALD	LeasePlan	Ayvens		ALD	LeasePlan	Ayvens		ALD	LeasePlan	Ayvens		ALD	LeasePlan	Ayvens
Leasing contract and services margins			605.1	624.8	1 229.9		388.2	231.4	619.6		-217.0	-393.4	-610.3		-35.9%	-63.0%	-49.6%
Reduction in depreciation costs			220.3	242.2	462.5		88.9	0.0	88.9		164.3	-435.0	-270.7
Fleet revaluation			12.5	0.0	12.5		18.2	0.0	18.2		-33.5	0.0	-33.5
Hyperinflation in Turkey			3.4	16.0	19.4		-27.5	1.0	-26.5		-35.7	-31.0	-66.7
Ukraine provision			21.4	0.0	21.4		0.0	0.0	0.0		3.6	0.0	3.6
MtM of derivatives			0.0	-13.8	-13.8		12.4	-149.8	-137.4		17.6	-471.2	-453.6
PPA impact			0.0	0.0	0.0		0.0	17.7	17.7		0.0	17.7	17.7
Underlying leasing contract and services margins (excluding reduction in depreciation costs, non-operating items and PPA impact)			347.6	380.4	728.0		296.2	362.5	658.7		-51.4	-17.9	-69.3		-14.8%	-4.7%	-9.5%

LIKE-FOR-LIKE OPERATING INCOME

		FY 2022				FY 2023				Variation				Variation %
In EUR million		ALD	LeasePlan	Ayvens		ALD	LeasePlan	Ayvens		ALD	LeasePlan	Ayvens		ALD	LeasePlan	Ayvens
Leasing contract and services margins		1,817.7	2,230.4	4,048.0		1,902.3	1,500.5	3,403.1		84.9	-729.9	-645.0		4.7%	-32.7%	-15.9%
Reduction in depreciation costs(1)		350.3	435.0	785.3		514.6	177.9	692.5		164.3	-257.1	-270.7
Non-operating items		126.6	313.0	439.6		78.5	-189.2	-110.7		-48.1	-502.2	-550.3
PPA impact		0.0	0.0	0.0		0.0	17.7	17.7		0.0	17.7	17.7
Underlying leasing contract and services margins (excluding non-recurring items and PPA impact)		1,340.7	1,482.4	2,823.0		1,309.5	1,494.0	2,803.5		-31.3	11.6	-19.6		-2.3%	0.8%	-0.7%
Used car sales result		685.2	602.4	1,287.6		397.0	38.8	354.4		-288.2	-536.6	-851.9
Impact of reduction in depreciation costs		-110.9	-117.0	-228.2		-312.2	-402.5	-714.7		-201.3	-285.5	-486.8
PPA impact		0.0	0.0	0.0		0.0	-192.8	-192.8		0.0	-192.8	-192.8
Underlying used car sales result (excluding the impact of reduction in depreciation costs and PPA impact)		796.1	719.4	1,515.5		709.2	634.0	1,343.2		-86.9	-85.4	-172.3		-10.9%	-11.9%	-11.4%
Gross operating income		2,502.9	2,832.8	5,335.7		2,299.6	1,539.3	3,838.9		-203.3	-1,293.5	-1,496.8		-8.1%	-45.7%	-28.1%
Underlying gross operating income (excluding non-recurring items and PPA impact)		2,137.2	2,201.8	4,339.0		2,018.7	2,128.0	4,146.7		-118.2	-73.8	-192.0		-5.5%	-3.4%	-4.4%
Margins excluding reduction in depreciation costs, non-operating items and PPA impact, as a percentage of average earning assets

 

		Q4 2022				Q4 2023				Variation				Variation %
In EUR million		ALD	LeasePlan	Ayvens		ALD	LeasePlan	Ayvens		ALD	LeasePlan	Ayvens		ALD	LeasePlan	Ayvens
Leasing contract and services margins		605.1	624.8	1,229.9		388.2	231.4	619.6		-217.0	-393.4	-610.3		-35.9%	-63.0%	-49.6%
Reduction in depreciation costs(1)		220.3	242.2	462.5		88.9	0.0	88.9		-131.4	-242.2	-373.6
Non-operating items		37.3	2.2	39.5		3.1	-148.8	-145.7		-34.1	-151.0	-185.2
PPA impact		0.0	0.0	0.0		0.0	17.7	17.7		0.0	17.7	17.7
Underlying leasing contract and services margins (excluding non-recurring items and PPA impact)		347.6	380.4	728.0		296.2	362.5	658.7		-51.4	-17.9	-69.3		-14.8%	-4.7%	-9.5%
Used car sales result		105,2	76,5	181,7		38.0	-47.7	-9.8		-67.2	-124.2	-191.5
Impact of reduction in depreciation costs		-73.3	-117.0	-190.3		-86.3	-223.9	-310.2		-13.0	106.9	-119.9
PPA impact		0.0	0.0	0.0		0.0	-192.8	-192.8		0.0	-192.8	-192.8
Underlying used car sales result (excluding the impact of reduction in depreciation costs and PPA impact)		178.5	193.5	372.0		124.3	369.0	493.2		-54.2	175.5	121.2		-30.4%	90.7%	32.6%
Gross operating income		710.3	701.3	1,411.6		426.2	183.7	609.9		-284.2	-517.6	-801.8		-40.0%	-73.8%	-56.8%
Underlying gross operating income (excluding non-recurring items and PPA impact)		526.1	573.9	1,100.0		420.5	731.5	1,151.9		-105.6	157.6	52.0		-20.1%	27.5%	4.7%
Margins excluding reduction in depreciation costs, non-operating items and PPA impact, as a percentage of average earning assets

LIKE-FOR-LIKE OPERATING EXPENSES

						FY 2022		FY 2023		var.	var. %
in EUR million
Total operating expenses						-1,819.0		-1,987.5		-168.5	9.3%
Cost to achieve						-128.0		-170.0		-42,0
Consultancy costs and transaction/rebranding costs						-70.1		-36.2		33.9
PPA impact						0.0		10.4		10.4
Underlying operating expenses (excluding non-recurring items and PPA impact)						-1,620.9		-1,791.8		-170.8	10.5%
Underlying cost / Income ratio (excluding non-recurring items and PPA impact)					57.4%		63.9%			+6.5 pts

 

				Q4 2022	Q4 2023		var.	var. %
in EUR million
Total operating expenses				-514.7	-510.8		3.8	-0.7%
Cost to achieve				-44.3	-45.0		-0.7
Consultancy costs and transaction/rebranding costs				-23.2	-21.4		1.8
PPA impact				0.0	10.4		10.4
Underlying operating expenses (excluding non-recurring items and PPA impact)				-447.2	-454.8		-7.7	1.7%
Underlying cost / Income ratio (excluding non-recurring items and PPA impact)				61.4%	69.1%		+7.7 pts

Restated quarterly series

(in EUR million)1	Q1 2022(2)	Q2 2022(2)	Q3 2022(2)	Q4 2022(2)	Q1 2023(3)	Q2 2023(3)(4)	Q3 2023(3)	Q4 2023(3)
Leasing Contract Margin	171.4	308.1	273.4	428.1	367.1	387.5	341.6	165.8
Services Margin	160.0	172.6	185.1	197.3	174.1	311.4	425.4	443.3
Leasing Contract and Services Margins	331.5	480.8	458.6	625.5	541.1	698.9	767.0	609.1
Used Car Sales result	215.2	217.4	191.0	123.9	190.5	87.0	75.5	(3.5)
Gross Operating Income	546.7	698.2	649.6	749.4	731.6	785.9	842.5	605.6
Total Operating Expenses	(187.5)	(216.2)	(219.4)	(259.6)	(260.5)	(369.7)	(444.5)	(516.9)
Impairment Charges on Receivables	(7.9)	(11.0)	(13.5)	(13.8)	(8.8)	(15.7)	(21.8)	(24.4)
Non-Recurring Income (Expenses)	0.0	0.0	0.0	(50.6)	(20.6)	33.1	(12.4)	(14.1)
Share of profit of associates and jointly controlled entities	0.9	0.2	0.3	0.3	0.8	0.8	3.3	1.6
Profit Before Tax	352.2	471.2	417.1	425.7	442.6	434.3	367.1	51.8
Income tax expense	(92.4)	(116.6)	(98.3)	(138.8)	(125.6)	(101.4)	(134.0)	(13.0)
Result from discontinued operations	0.0	0.0	0.0	0.0	0.0	(91.3)	14.0	(0.2)
Non-controlling interests	(2.2)	0.5	(0.8)	(7.2)	(1.5)	(4.8)	(11.2)	(10.4)
Net Income (Group share)	257.7	355.1	318.0	284.7	315.5	236.7	235.9	28.2
(in '000)	31.03.2022	30.06.2022	30.09.2022	31.12.2022	31.03.2023	30.06.2023	30.09.2023	31.12.2023
Total Contracts	1,737	1,761	1,762	1,806	1,815	3,496	3,394	3,420
Full service leasing contracts	1,436	1,448	1,454	1,464	1,473	2,755	2,692	2,709
Fleet management contracts	301	313	308	342	342	741	703	710
The sum of rounded values contained in the table may differ slightly from the totals reported, due to rounding rules Restated for IFRS 17, which applies from 1 January 2023 Q2, Q3, Q4 2023 income statements were restated for the impact of LeasePlan’s Purchase Price Allocation in each quarter (instead of the 2023 impact being allocated to Q4 2023 only) Q2 2023 non-controlling interests were corrected to include the payment of interest to holders of AT1 issued by LeasePlan and subscribed by external parties

 

1 “Ayvens” refers to ALD and its consolidated entities2 The Group’s estimated unaudited consolidated results as at 31 December 2023 were examined by the Board of Directors, chaired by Pierre Palmieri, on 7 February 2024. The audit procedures carried out by the Statutory Auditors on the consolidated financial statements are in progress. The Group’s consolidated financial statements for the year ending 31 December 2023 are expected to be closed by the Board of Directors by end March 20243 Net carrying amount of the rental fleet plus net receivables on finance leases4 Scope as at 31 December 2023, excluding non-recurring items (reduction in depreciation costs and non-operating items: fleet revaluation, hyperinflation in Turkey, marked-to-market of derivatives, provision in Ukraine) and impact of LeasePlan’s Purchase Price Allocation (PPA)5 Management information, on Ayvens’ sales, excluding impact of reduction in depreciation costs and PPA6 Without the impact of reduction in depreciation costs in prior quarters, ALD’s UCS result per unit would have been EUR 2,344 vs. EUR 3,269 in 20227 Excluding UCS result, non-recurring items and impact of PPA8 Diluted Earnings per share, calculated on a weighted average number of shares, according to IAS 33. Basic EPS for 2023 at EUR 1.08. 2022 EPS was restated for IFRS 17, which applies from 1 January 2023

9 Subject to the approval of General Meeting of Shareholders10 Based on Net income group share after deduction of interest on AT1 capital11 Excluding UCS result, non-recurring items and impact of PPA12 Of net income Group share, after deduction of interest on AT1 capital13 Petrol, Diesel, Fuel cell, Gas, Flex Fuel, Full Hybrids, Mild Hybrids and others14 Depending on subsidies from governments15 Next Generation Digital Architecture16 On a like-for-like basis17 Management information, in EU+: European Union, UK, Norway, Switzerland18 Source: ACEA19 Compared to LeasePlan’s books20 As at 22 May 2023, as per IFRS 3 “Business combinations”21 Customer relationship of c. EUR 280 million before cancellation of pre-existing customer relationship at LeasePlan 22 In accordance with IFRS 3 “Business combinations”23Acquisition price adjusted by c. EUR +10 million in relation to contingent payment 24 2023 impact of LeasePlan’s Purchase Price Allocation fully accounted for in Q4 202325 Excluding non-operating items and PPA26 Reduction in depreciation costs compared to the contractual costs in relation to vehicles whose sales proceeds are forecast to be in excess of their net book value and for which depreciation has been adjusted or stopped 27 Assuming derivatives portfolio held as at 31 December 2023 and not assuming any new derivative transaction28 The impact of LeasePlan’s Purchase Price Acquisition in 2023 was fully accounted for in the Q4 2023 income statement. Notwithstanding, Q2, Q3 and Q4 restated income statements, where the PPA impact is allocated to each quarter from 22 May 2023, are shown in appendix29 Excluding non-operating items and PPA30 Reversal of reduction in depreciation costs accounted for by LeasePlan up until closing31 Management information32 Management information33 Cost of risk expressed as a percentage of arithmetic average of earning assets

34 Calculated according to IAS 33. Basic EPS at EUR 1.08. Under IAS 33, EPS is computed using the average number of shares weighted by time apportionment. 2022 EPS was restated for IFRS 17, which applies from 1 January 2023

35Net income (Group share) divided by the arithmetic average of Earning Assets 36 Excluding reduction in depreciation costs, non-operating items and PPA impact 37 After deduction of interest on AT1 capital38 Excluding Additional Tier 1 capital39 Not including Additional Tier 1 capital 40 Including loans granted to entities held-for-sale

41 Restated for IFRS 17, which applies from 1 January 2023

 

Attachment

• 240208 -Ayvens FY 23 PR_ENG