HALF-YEARLY FINANCIAL INFORMATION ALD | LeasePlan reports first
half 2023 results
HALF-YEARLY FINANCIAL INFORMATION ALD | LeasePlan reports first
half 2023 results
- CONSOLIDATION OF LEASEPLAN FROM 22 MAY 2023
- UNDISPUTED LEADERSHIP IN THE MULTINATIONAL SEGMENT: COMMERCIAL
FRANCHISE INCREASING FROM MORE THAN 320 CLIENTS TO MORE THAN 550
CLIENTS
- STRONG NET INCOME (GROUP SHARE): EUR 564.5 MILLION1
- REDUCTION IN DEPRECIATION COSTS2 BOOSTING LEASING CONTRACT
MARGIN: EUR+315.3 MILLION IN H1 2023 VS. EUR +62.7 MILLION IN H1
2022
- USED CAR SALES RESULT PER UNIT3 AT A HIGH LEVEL: EUR 2,8874
BEFORE THE IMPACT OF REDUCTION IN DEPRECIATION COSTS, VS. EUR 3,212
IN H1 2022
- INTEGRATION AND TRANSACTION COSTS IMPACTING OPERATING
EXPENSES
- RESULT FROM DISCONTINUED OPERATIONS: EUR -91.3 MILLION RELATED
TO THE DISPOSAL OF ALD RUSSIA
- CET 1 RATIO AT 12.5% AS AT END JUNE 2023
H1 2023 results highlights
- Total Contracts 3.391 million contracts5
managed worldwide at end June 2023
- Funded fleet 2.667 million vehicles, up 3.0%6
vs. end June 2022
- Leasing Contract and Services Margins at EUR
1,255.4 million, up 54.6% vs. H1 2022, driven by reduction in
depreciation costs and the consolidation of LeasePlan
- Used Car Sales result at EUR 285.4 million,
vs. EUR 432.7 million in H1 2022
- Operating expenses at EUR 632.1 million,
including LeasePlan-related costs vs. EUR 403.7 million in H1
2022
- Cost of Risk7 at a low level at 13 bps vs. 16
bps in H1 2022
- Result from discontinued operations of EUR
-91.3 million
On 3 August 2023, Tim Albertsen, CEO of ALD | LeasePlan,
commenting on the H1 2023 Group results, stated: “Having finalized
the acquisition of LeasePlan last May, our teams are thrilled to
embark on this exciting journey and to leverage on our strengths
and complementarities to create the leading global sustainable
mobility player in an industry where size matters.
The integration of LeasePlan is progressing according to plan. A
number of key initiatives, led by the industry’s best talent, are
well underway. Two months into the integration, we’ve already
reached our first objectives. We will continue executing our
integration plan at the same rapid pace and I am confident that we
will start reaping some benefits very soon.
The first results of ALD | LeasePlan as a combined entity are
strong and promising, supported by a still highly favourable used
car market and reflecting the unwavering commitment of our
employees to achieving the best standards of service quality while
transforming the company. They testify to the solidity and
resilience of our business model in a rapidly changing
macroeconomic environment. I have no doubt that the combined entity
will be able to capitalize on this transformative deal to create
value for all stakeholders.”
Outlook for 2023
In an economic environment marked by the continued rise in
interest rates to tame inflation, economies slowed down during the
first half of 2023. While supply and logistics chains continued to
ease, allowing new car deliveries in Europe to recover from last
year’s low levels, the production of new cars remained well below
pre-Covid levels. Against this backdrop, ALD | LeasePlan continues
to expect that the used car market will normalize gradually, with
the exceptionally favourable supply/demand situation lasting until
mid-2024 instead of end 2023, i.e. longer than previously
anticipated.
Leveraging on the acquisition of LeasePlan, ALD | LeasePlan
expects for the full-year 2023:
- Funded fleet growth8 between 2% and 4% vs. end
December 2022, on the back of continued dynamic commercial activity
and high order book;
- Used Car Sales result per unit between EUR
1,200 and EUR 1,600 on average on ALD’s reported sales and c. 290
thousand vehicles sold. This guidance includes the negative impact
of reduction in depreciation costs in previous quarters and
reflects a progressive normalization in a still favourable market.
No UCS result is assumed on LeasePlan’s Used car sales9;
- Costs to achieve the integration and
synergies10 between EUR 150 million and 180 million,
unchanged vs. the previous estimate;
Undisputed leadership in an industry where size matters
The LeasePlan acquisition represents a step-up change, which
propels the combined entity to the position of unrivalled leader in
the operational leasing industry, where scale is crucial. ALD |
LeasePlan ranks #1 multi-brand leasing player in 29 countries,
including the top European markets, and operates a 3.4 million11
fleet, twice the size of its nearest competitor. With direct
presence in 44 countries, ALD | LeasePlan’s geographical coverage
is the largest in the industry. It enjoys a strong foothold in
Western Europe and is well positioned in promising emerging markets
all over the world.
In line with its commitment to lead the transition to
sustainable mobility, ALD | LeasePlan operates the #1 multi-brand
EV12 fleet worldwide, with 428 thousand EVs as at 30 June 2023.
Drawing on the broadest range of partnerships in the EV ecosystem
and its unique capacity to address customers’ needs, ALD |
LeasePlan will continue shaping the transformation of the
industry.
The combined entity firmly ranks #1 in the multinational
segments, thanks to first-rate geographical coverage and
long-standing commercial relationships. The client franchise in
this category has risen from 320 clients for ALD alone to 550
clients for the combined entity, with associated fleet under
management increasing from 378 thousand to 610 thousand vehicles as
at 30 June 2023.
The reinforced leadership positions, strong risk management,
combined with the solid capital structure and potential for
synergies from the acquisition have been recognized by credit
rating agencies, which have awarded ALD | LeasePlan the best debt
credit ratings among multi-brand leasing companies. Ratings were
upgraded to the single A category just after the closing of the
acquisition, allowing for more competitive funding costs and
greater access to funding providers, both of which are essential in
the sector. A new rating was assigned by Moody’s, namely A1, while
S&P and Fitch have both upgraded their senior unsecured debt
ratings to A-, corresponding to a 2-notch and 1-notch improvements
respectively.
First objectives achieved according to plan
The integration of LeasePlan began immediately after closing,
with teams of the combined entity joining forces to execute a
thorough action plan. A number of objectives are already achieved
only 60 days into the integration, in line with plans. Execution of
the plan will continue at the same rapid pace, so that the first
synergies can be delivered by the end of the year.
As the LeasePlan acquisition was finalized a few months later
than originally planned, ALD | LeasePlan now expects that annual
run-rate synergies will be achieved by 2026 instead of 2025.
ALD | LeasePlan is committed to offering a seamless service and
ensuring the highest level of customer satisfaction and therefore
has arranged for a single team to face those clients which were
previously served by both entities. Having received very positive
feedback, it expects low attrition within this client segment.
At the same time, sales teams have been trained on the full
range of products (LCVs13, Flex, multimodality…) to capitalize on
strengths and complementarities and take advantage of the multiple
cross-selling opportunities offered by the combination.
Procurement is one of the main sources of synergies for the
combined entity, prompting ALD | LeasePlan to start renegotiating
the terms and conditions with its suppliers, leveraging on its
scale. This proved successful so far, with bonus improvements
already agreed by several OEMs. More recently, the first joint
global tender was launched on tyres. With 4 million units purchased
per annum, ALD | LeasePlan is in a strong position to improve its
purchasing conditions.
ALD | LeasePlan is on track to secure at least EUR 30 million of
annual procurement savings by the end of 2023. This amount would
progressively materialize through the income statement in 2024.
Digital & IT are key in the integration process. ALD |
LeasePlan already started the convergence of IT tools and the
streamlining of processes and will launch the local integration of
IT by the end of the year. These initiatives will enable
materializing cost synergies as from next year.
Robust commercial performance
Continuing the positive trends of the previous quarters, total
contracts for ALD | LeasePlan stood at 3,391 thousand as at end
June 2023, up by 4.3%14 compared to end June 2022, reflecting the
dynamic commercial activity. LeasePlan’s contribution amounted to
1,616 thousand contracts as at end June 2023.
Full-service leasing contracts reached 2,667 thousand units as
at end June 2023, up +3.0% vs. end June 2022 on a like-for-like
basis, with the order book continuously at a high level.
Fleet management contracts increased by +9.1% vs. June 2022, to
reach 724 thousand vehicles. Year-on-year growth was primarily
driven by a new banking partnership.
ALD | LeasePlan continued to play a key role in clients’
transition towards sustainable mobility by leveraging their
powerful EV offering (including charging). EV penetration of 32%15
of new passenger car registrations in H1 2023 progressed
significantly compared to the same period last year (25% EV
penetration). This outstanding performance compares very favourably
to the European market at 21%16 in H1 2023. BEV17 and PHEV18
penetration stood at 19% and 13% respectively, well ahead of the
market.
This robust commercial performance was achieved across a more
balanced geographical portfolio. ALD | LeasePlan’s diversification
was enhanced by the acquisition of LeasePlan, with exposure to
France, its largest market, reduced from 28% to 20% of total fleet.
Similarly, the top 10 largest countries (including France) now
account for 83% of total fleet, vs. 87% for ALD alone.
Impacts of LeasePlan acquisition on financial
statements
LeasePlan is consolidated from its acquisition date, 22 May
2023, i.e. for slightly more than a month in the H1 2023 income
statement.
The disposal of 6 entities representing c. 3% of the total
combined fleet, was agreed with antitrust authorities during the
LeasePlan negotiation process. Consequently, as at 30 June 2023,
ALD’s entities in Portugal, Ireland and Norway (except NF Fleet
Norway) and LeasePlan’s entities in Czech Republic, Finland and
Luxembourg are classified as assets held-for-sale under IFRS 5. The
ALD entities do not represent a major line of business or
geographical area of operations and therefore are reported in the
continuing activities of the Group’s income statement. LeasePlan
entities do not contribute to the Group’s H1 2023 income statement,
as their assets and liabilities are recognized at fair value in the
Purchase Price Allocation (PPA) exercise. These 6 entities were
sold to Crédit Agricole Consumer Finance and Stellantis on 1 August
2023 and hence were deconsolidated from that date.
Upon closing of the acquisition of LeasePlan, which holds a
banking license allowing it to raise deposits, ALD SA became a
Financial Holding Company supervised by the European Central Bank
and subject to new regulatory requirements. Under its regulated
status, ALD | LeasePlan is able to optimize its capital structure
thanks to layers of hybrid capital. Additional Tier 1 is accounted
for in “shareholders’ equity” while Tier 2, subscribed by the
company’s parent Societe Generale, is accounted for in “borrowings
from financial institutions” in the financial statements.
- Accounting considerations
The Group applies the IFRS 3 “Business combinations” standard,
whereby a Purchase Price Allocation (PPA) exercise is conducted.
ALD | LeasePlan expects that the identification and recognition at
fair value of acquired assets and liabilities will be finalized by
end 2023. As a result, no profit on LeasePlan’s Used car sales was
recognized since the acquisition in the H1 2023 income statement,
as the fleet of LeasePlan will be assessed at fair value.
Provisional goodwill as at 30 June 2023 is expected to be impacted
in the full-year 2023 financial statements.
Additionally, the harmonization of accounting policies and
estimates across the Group is underway.
Strong H1 2023 financial results
ALD | LeasePlan recorded strong H1 2023 financial results,
supported by continued highly favourable used car prices and the
consolidation of LeasePlan since 22 May 2023, despite the ramp-up
of integration costs and the negative impact of the disposal of ALD
Russia.
Taken together, Leasing contract and Services margins (Total
margins) reached EUR 1,255.4 million in H1 2023, an increase of
54.6%19 compared to H1 2022. Out of this amount, the contribution
of LeasePlan since its acquisition on 22 May 2023 was EUR 170.1
million20. ALD total margins were stable vs. the same period last
year, when adjusted for reduction in depreciation costs and
non-operating items, and up by 4.5% on a like-for-like basis21
excluding the cost of Tier 2 debt22.
Leasing contract margin was boosted by the reduction in
depreciation costs (EUR +315.3 million vs. EUR +62.7 million in H1
2022). As a result of continued high estimated used car prices
until mid-2024, depreciation has been adjusted or stopped for those
vehicles whose sales proceeds are forecast to be in excess of their
net book value. The depreciation curve was modified in H1 2023,
taking into account the most recent fleet revaluation exercise,
performed at mid-year.
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.
No reduction in depreciation cost was assumed on LeasePlan’s
portfolio due to the anticipation of fair value recognition in the
context of the Purchase Price Allocation (PPA) exercise.
Non-operating items23 impacting Leasing contract margin amounted
to EUR +70.0 million (vs. EUR +47.9 million in H1 2022),
comprising:
- Fleet revaluation exercise24 of EUR +17.1 million (vs. EUR
+40.5 million in H1 2022);
- Hyperinflation in Turkey25 EUR +19.8 million (vs. EUR +39.5
million in H1 2022);
- Mark to market of derivatives26 of EUR +33.1 million (vs. EUR
-5.3m in H1 2022);
- There was no adjustment to the provision in Ukraine accounted
for in H1 2023 (vs. a EUR -26.8 million provision in H1 2022).
At EUR +285.4 million in H1 2023, the contribution from Used car
sales (UCS) result remained at a high level, albeit down from the
historically high H1 2022 level (EUR +432.7m). The amount
incorporates a negative impact of change in depreciation curve of
EUR -132.0 million, as the positive impact of reduction in
depreciation costs on Leasing contract margin in previous quarters
anticipated some UCS profits. Due to continuing delays in car
deliveries, some contracts were extended, which had a beneficial
impact on UCS results.
There has been no profit recorded on LeasePlan’s Used car sales
since the acquisition in the H1 2023 income statement, due to the
fair value recognition under the PPA. As a result, the current
provisional goodwill was reduced accordingly.
UCS result per unit27 on ALD’s sales came in at EUR 1,974 per
unit in H1 2023 vs. EUR 3,212 per unit in H1 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 2,887. In Q2 2023, UCS result per
unit amounted to EUR 1,346 per unit (EUR 2,614 without the impact
of reduction in depreciation cost) vs. EUR 3,330 in Q2 2022.
Leveraging on its efficient remarketing platform, ALD sold 145
thousand units28 in H1 2023 (not including 39 thousand vehicles
sold by LeasePlan in May and June 2023) vs. 135 thousand in H1
2022. The volume increase, compared to the same period last year,
is mainly driven by improved dynamics in new car deliveries.
As a result of the exceptionally high used car prices, ALD |
LeasePlan’s Gross Operating Income (GOI) reached EUR 1,540.8
million in H1 2023, up 23.8% vs. H1 2022. Excluding the net impact
of the reduction in depreciation costs29, GOI would have increased
by 14.8% vs. H1 2022.
Operating expenses amounted to EUR 632.1 million in H1 2023, vs.
EUR 403.7 million in the same period last year. The H1 2023 amount
includes: i) a scope effect of EUR +115.5 million due to the
consolidation of LeasePlan and Fleetpool, ii) LeasePlan integration
costs for EUR 85.0 million and iii) transactions costs in relation
to the LeasePlan acquisition and the disposal of the remedies
entities for EUR 26.0 million. The company’s operating expenses
include additional costs related to the new regulated status of ALD
| LeasePlan.
As a result, the Cost/Income ratio (excl. UCS result) stood at
50.3% in H1 2023, vs. 49.7% in H1 2022.
Impairment charges on receivables came in at EUR 24.5 million in
H1 2023, compared to EUR 18.9 million in H1 2022. The cost of
risk30 remained low at 13 bps compared to 16 bps in H1 2022.
Income tax expense increased to EUR 235.4 million, up from EUR
208.9 million in H1 2022. Effective tax rate came in at 26.3%, up
from 25.4% in H1 2022.
Result from discontinued operations amounted to EUR -91.3
million and was related to the disposal of ALD Russia on 20 April
2023. This amount covers: i) EUR -72 million reclassification of
accumulated translation reserves into the income statement at the
closing of the sale of ALD Russia (with no impact on shareholders’
equity); ii) EUR -29.2 million impairment of the net book value
after tax and iii) EUR +9.9 million Q1 2023 net income reclassified
from continued operations.
ALD | LeasePlan’s net income (Group share)31 was strong at EUR
564.5 million in H1 2023, although down by 7.9% from the historical
high of EUR 612.8 million in H1 2022.
Diluted Earnings per share32 amounted to EUR 0.91 in H1 2023,
vs. EUR 1.3833 in H1 2022. The change is distorted by the fact that
the rights issue which financed the cash component of the LeasePlan
acquisition price was settled in December 2022, while LeasePlan was
consolidated only from 22 May 2023. Total balance sheet increased
from EUR 31.3 billion as at 31 December 2022 to EUR 68.3 billion as
at 30 June 2023, driven by the consolidation of LeasePlan. ALD |
LeasePlan expects to finalize the PPA exercise, whereby acquired
assets and liabilities are identified and recognized at fair value,
by the end of 2023. Consequently, the related impact on provisional
goodwill34 would be accounted for in the full-year 2023 financial
statements.
Earning Assets, at EUR 48.6 billion35, more than doubled vs. the
end of 2022, underpinned by the consolidation of LeasePlan as well
as higher-value vehicles and the rising share of Electric Vehicles
in the funded fleet.
ALD | LeasePlan’s risk-weighted assets (RWA) totalled EUR 54.3
billion36 as at 30 June 2023 under CRR2/CRD5 rules, with credit
risk-weighted assets accounting for 85% of the total.
ALD | LeasePlan has a Common Equity Tier 1 ratio of 12.5% and
Total Capital ratio of 16.6% as at 30 June 2023. Total debt
funding37 stood at EUR 47.1 billion at the end of June 2023, up
from EUR 19.9 billion at the end of 2022, of which 33% consisted of
loans from Societe Generale, while 24% came from deposits.
As part of its active liquidity management strategy, ALD |
LeasePlan continued to diversify its funding by issuing total of
EUR 1,850 million bonds in H1 2023. The successful bond issues
confirm the market’s solid appetite for ALD | LeasePlan debt
instruments. Outstanding senior unsecured bonds now rank as Senior
Preferred obligations. In the future, the combined entity intends
to issue only Senior Preferred bonds on the market, through ALD
S.A. as sole issuer.
The combined entity has access to ample short-term liquidity,
with cash holdings at Central bank reaching EUR 4.0 billion and an
undrawn committed Revolving Credit Facility of EUR 1.375 billion in
place.
Conference call for investors and analysts
Date: 3 August, at 10.00 am Paris time - 9.00 am London time
Speakers: Tim Albertsen, CEO and Gilles Momper, CFO
Connection details:
- Webcast: Click
https://edge.media-server.com/mmc/p/efyyk7ht
- Conference call:
- FR: +33 1 70 91 87 04
- UK: +44 121 281 8004
- US: +1 718 705 8796
- Access code: 457698
Agenda
- 18 September 2023: Capital Markets Day
publication
- 21 September 2023: Capital Markets Day
presentation
- 3 November 2023: Trading update and Q3
results
- 8 February 2024: Q4 and FY 2023 results
Press contact
ALD Automotive | LeasePlanStephanie
Jonville ALD Communication Department Tel.: +33 (0)6 46 14
81 90stephanie.jonville@aldautomotive.com
About
ALD Automotive | LeasePlan
ALD Automotive | LeasePlan ALD Automotive |
LeasePlan is a leading global sustainable mobility player providing
full-service leasing, flexible subscription services, fleet
management services and multi-mobility solutions to a client base
of large corporates, SMEs, professionals and private individuals.
With the broadest coverage in 44 countries through direct presence,
ALD Automotive | LeasePlan is leveraging its unique position to
lead the way to net zero and further shape the digital
transformation of the industry through innovation and
technology-enabled services to enable the transformation towards
large scale adoption of sustainable mobility.
With 15,700 employees worldwide, ALD Automotive | LeasePlan
manages 3.4 million vehicles (at end June 2023). ALD, whose
majority shareholder is Societe Generale, is the listed company on
Compartment A of Euronext Paris (ISIN: FR0013258662; Ticker:
ALD).
This document contains forward-looking statements relating to
the targets and strategies of ALD SA (the “Company”) and its
subsidiaries (together with the Company, the “Group”). 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 Group 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
numerous 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 Group‘s markets in particular, regulatory 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. 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 Autorité des Marchés Financiers.
Investors are advised to take into account factors of uncertainty
and risk likely to impact the operations of the Group when
considering the information contained in such forward-looking
statements. Other than as required by applicable law, the Company
does not undertake any obligation to update or revise any
forward-looking information or statements. Unless otherwise
specified, the sources for the business rankings and market
positions are internal. The financial information presented for the
quarter ending 30 June 2023 was reviewed by the Company’s Board of
Directors on 1 August 2023 and has been prepared in accordance with
IFRS as adopted in the European Union and applicable at this
date.
Appendix
Consolidated Income Statement
in EUR million |
Q2 2023 |
Q2 202238 |
Q Var. |
H1 2023 |
H1 202238 |
Var. |
Leasing contract revenues |
1,758.7 |
1,205.8 |
45.9% |
3,015.1 |
2,365.6 |
27.5% |
Leasing Contract Costs - Depreciation |
(1,217.7) |
(882.1) |
38.0% |
(2,040.2) |
(1,827.1) |
11.7% |
Leasing Contract Costs - Financing |
(175.7) |
(50.3) |
249.2% |
(265.6) |
(95.7) |
177.5% |
Unrealised Gains/Losses on Financial xxInstruments |
36.0 |
34.8 |
3.4% |
59.1 |
36.8 |
60.6% |
Leasing Contract Margin |
401.3 |
308.1 |
30.2% |
768.3 |
479.6 |
60.2% |
Services Revenues |
986.8 |
649.9 |
51.8% |
1,702.6 |
1,208.5 |
40.9% |
Cost of Services Revenues |
(673.7) |
(477.3) |
41.2% |
(1,215.5) |
(875.8) |
38.8% |
Services Margin |
313.1 |
172.6 |
81.4% |
487.1 |
332.7 |
46.4% |
Leasing Contract and Services Margins |
714.4 |
480.8 |
48.6% |
1,255.4 |
812.2 |
54.6% |
Proceeds of Cars Sold |
1,398.9 |
984.8 |
42.0% |
2,526.0 |
2,003.2 |
26.1% |
Cost of Cars Sold |
(1,304.0) |
(767.4) |
69.9% |
(2,240.7) |
(1,570.5) |
42.7% |
Used Car Sales result |
94.9 |
217.4 |
-56.4% |
285.4 |
432.7 |
-34.0% |
Gross Operating Income |
809.2 |
698.2 |
15.9% |
1,540.8 |
1,244.9 |
23.8% |
Staff Expenses |
(225.2) |
(127.9) |
76.0% |
(361.9) |
(244.1) |
48.3% |
General and Administrative Expenses |
(115.2) |
(72.6) |
58.6% |
(221.0) |
(128.9) |
71.5% |
Depreciation and Amortisation |
(31.2) |
(15.6) |
99.8% |
(49.2) |
(30.7) |
60.0% |
Total Operating Expenses |
(371.6) |
(216.2) |
71.9% |
(632.1) |
(403.7) |
56.6% |
Cost/Income ratio (excl CSR) |
52.0% |
45.0% |
7 bps |
50.3% |
49.7% |
0.6 bps |
Impairment Charges on Receivables |
(15.7) |
(11.0) |
42.7% |
(24.5) |
(18.9) |
29.4% |
Other income |
8.6 |
0.0 |
na |
8.6 |
0.0 |
na |
Non-Recurring Income (Expenses) |
20.6 |
(0.0) |
na |
(0.0) |
(0.0) |
na |
Operating Result |
451.1 |
471.0 |
-4.2% |
892.9 |
822.3 |
8.6% |
Share of Profit of Associates and Jointly xxControlled
Entities |
0.8 |
0.2 |
296.4% |
1.6 |
1.1 |
44.3% |
Profit Before Tax |
451.9 |
471.2 |
-4.1% |
894.4 |
823.4 |
8.6% |
Income Tax Expense |
(109.8) |
(116.6) |
-5.8% |
(235.4) |
(208.9) |
12.7% |
Result from discontinued operations |
(91.3) |
0.0 |
na |
(91.3) |
0.0 |
na |
Profit for the Period |
250.8 |
354.6 |
-29.3% |
567.7 |
614.5 |
-7.6% |
Non-Controlling Interests |
1.7 |
(0.5) |
na |
3.2 |
1.7 |
86.5% |
Net income group share |
249.1 |
355.1 |
-29.9% |
564.5 |
612.8 |
-7.9% |
Details of operating income
components
|
H1 2023 |
|
H1 2022 |
|
|
|
|
|
|
In EUR million |
ALD |
LeasePlan39 |
Total |
|
ALD |
|
|
|
|
|
|
Leasing contract margin |
|
|
|
|
|
o/w Reduction in depreciation costs |
315.3 |
0 |
315.3 |
|
62.7 |
o/w Non-operating items |
41.8 |
28.2 |
70.0 |
|
47.9 |
Fleet revaluation |
17.1 |
0.0 |
17.1 |
|
40.5 |
Hyperinflation in Turkey |
21.4 |
-1.6 |
19.8 |
|
39.5 |
Provision in Ukraine |
0.0 |
0.0 |
0.0 |
|
-26.8 |
MtM of derivatives |
3.3 |
29.8 |
33.1 |
|
-5.3 |
o/w Tier 2 costs |
-11.3 |
0 |
-11.3 |
|
0 |
|
|
|
|
|
|
UCS results |
285.4 |
0.0 |
285.4 |
|
432.7 |
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
o/w CTA |
-68.0 |
-17.0 |
-85.0 |
|
-41.3 |
o/w Transaction costs |
-26.0 |
0 |
-26.0 |
|
|
Balance sheet as at 30 June 2023
In EUR million |
H1 2023 |
FY 2022 |
Earning assets |
48,633 |
23,943 |
o/w Rental fleet |
46,409 |
23,227 |
o/w Financial lease receivables |
2,224 |
716 |
Long term invt. – Equity Reinvestment |
244 |
280 |
Cash & balances at central banks |
5,546 |
253 |
Intangibles (incl. goodwill) |
2,925 |
745 |
Other |
8,775 |
4,996 |
Assets of disposal group classified as held-for-sale |
2,117 |
1,085 |
Total Assets |
68,264 |
31,302 |
Shareholders’ equity
40 |
11,083 |
5,106 |
Minority interest |
38 |
37 |
Total Equity |
11,121 |
5,143 |
Deposits |
11,448 |
0 |
Financial debt |
35,626 |
19,874 |
Other liabilities |
9,404 |
6,058 |
Liabilities of disposal group classified as held-for-sale |
665 |
227 |
Total liabilities and equity |
68,264 |
31,302 |
Earnings per share (EPS)
Basic EPS |
H1 2023 |
H1 2022 |
Existing shares |
816,960,428 |
404,103,640 |
Shares allocated to cover stock options and shares awarded to
staff |
(1,114,336) |
(1,045,448) |
Treasury shares in liquidity contract |
(140,502) |
(106,258) |
End of period number of shares |
815,705,590 |
402,951,934 |
|
|
|
Weighted average number of shares used for EPS calculation
(A) |
606,426,92741 |
441,858,65042 |
in EUR million |
|
|
Net
income group share |
564.5 |
612.8 |
Deduction of interest on AT1 capital |
(10.9) |
0 |
Net
income group share after deduction of interest on AT1
capital(B) |
553.6 |
612.8 |
|
|
. |
Basic EPS (in EUR) (B/A) |
0.91 |
1.39 |
|
|
|
|
|
Diluted EPS |
H1 2023 |
H1 2022 |
Existing shares Shares issued for no consideration43 |
816,960,42820,973,317 |
404,103,6400 |
End of period number of shares |
837,933,745 |
404,103,640 |
|
|
|
Weighted average number of shares used for EPS calculation
(A’) |
611,109,87142 |
442,935,01743 |
|
|
|
Diluted EPS (in EUR) (B/A’) |
0.91 |
1.38 |
CRR2/CRD5 prudential capital ratios and
RWA
in EUR million |
30 June 2023 |
Shareholders equity Group Share |
11 083 |
AT1 capital |
(1 245) |
Dividend provision & interest on
AT1 capital44 |
(280) |
Goodwill and intangibles |
(2 675) |
Deductions and regulatory
adjustments |
(97) |
Common Equity Tier 1 capital |
6 787 |
Additional Tier 1 capital |
750 |
Tier 1 capital |
7 537 |
Tier 2 capital |
1
500 |
Total capital (Tier 1 + Tier 2) |
9 037 |
|
|
Risk-Weighted Assets (RWA)45 |
54 293 |
Credit Risk-Weighted Assets |
46 039 |
Market Risk-Weighted Assets |
2 558 |
Operational Risk-Weighted Assets |
5 696 |
|
|
Common Equity Tier 1 ratio |
12.5% |
Tier 1 ratio |
13.9% |
Total Capital ratio |
16.6% |
1 Before deduction of interest on AT1 capital
2 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
3 Management information, on ALD’s sales. No profit assumed on
LeasePlan’s sales pending Price Purchase Allocation exercise
4 Including the impact of depreciation adjustments from prior
quarters, UCS result per unit was EUR 1,974 in H1 2023
5 Excluding ALD Russia, ALD entities held for sale in Portugal,
Ireland, Norway (except NF Fleet Norway), Belarus and LeasePlan
entities held for sale in Czech Republic, Finland, and
Luxembourg
6 On a like-for-like basis, excluding ALD Russia, LeasePlan USA,
ALD entities held for sale in Portugal, Ireland, Norway (except NF
Fleet Norway), Belarus and LeasePlan entities held for sale in
Czech Republic, Finland, and Luxembourg
7 Annualized Cost of Risk as a % of arithmetic Average Earning
Assets
8 On a like-for-like basis for the combined entity: excluding
ALD Russia, LeasePlan USA and entities held for sale
9 Under the Purchase Price Allocation exercise, LeasePlan’s
assets and liabilities are recognized at fair value as per IFRS 3
“Business combinations”
10 Costs to achieve (CTA)
11 As at 30 June 2023, excluding ALD Russia, ALD entities held
for sale in Portugal, Ireland, Norway (except NF Fleet Norway),
Belarus and LeasePlan entities held for sale in Czech Republic,
Finland and Luxembourg
12 Battery Electric Vehicles (BEVs), Plug-in Hybrids (PHEVs)
13 Light commercial vehicles
14 On a like-for-like basis: excluding ALD Russia, LeasePlan
USA, ALD entities held for sale in Portugal, Ireland, Norway
(except NF Fleet Norway), Belarus and LeasePlan entities held for
sale in Czech Republic, Finland and Luxembourg
15 Management information,-in EU+: European Union, UK, Norway,
Switzerland
16 Source: ACEA
17 Battery Electric Vehicles (BEVs)
18 Plug-in Hybrids (PHEVs)
19 H1 2022 income statement was restated for IFRS 17, which
applies from 1 January 2023
20 Excluding non-operating items (mark to market of derivatives
and hyperinflation in Turkey) totaling EUR +28.2 million
21 Excluding LeasePlan, Fleetpool and ALD Russia
22 EUR 11.3 million in H1 2023, related to the acquisition of
LeasePlan
23 Hyperinflation in Turkey, mark to market of derivatives,
fleet revaluation, provision in Ukraine
24 Based on the expected roll-off of the fleet portfolio and
deriving from the usual revaluation exercise
25 As per IAS 29 “Financial Reporting in Hyperinflationary
Economies”
26 In relation to IRS and FX hedging
27 Management information
28 Management information
29 Impact of reduction in depreciation costs, net of its impact
on UCS results was EUR +183.3 million over H1 2023 vs. EUR +62.7m
in H1 2022
30 Annualized Cost of Risk as a % of arithmetic average of
Earning Assets.
31 Before deduction of interest on AT1 capital
32 After deduction of interest on AT1 capital (EUR 10.9m) and
using the average number of shares weighted by time
apportionment
33 Adjusted for rights issue in 2022
34 Provisional goodwill on LeasePlan: EUR 1.7 billion as at 30
June 2023
35 Excluding earning assets of entities held for sale
36 Standard approach applied on ALD; Internal Ratings-Based
approach applied to certain LeasePlan exposures is currently under
review, which could result in higher Risk-Weighted Assets
37 Excluding AT1 capital
38 Restated for IFRS 17, which applies from 1 January 2023
39 Consolidated from 22 May 2023
40 Including Additional Tier 1
41 Average number of shares weighted by time apportionment
42 Adjusted for the rights issue in December 2022
43 Assuming exercise of warrants, as per IAS 33
44 The dividend provision assumes a payout ratio of 50% of Net
income group share, after deduction of interest on AT1 capital
45 Standard approach applied on ALD; Internal
Ratings-Based approach applied to certain LeasePlan exposures is
currently under review, which could result in higher Risk-Weighted
Assets
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