• Ayvens reports FY 2023 results

    Source: Nasdaq GlobeNewswire / 08 Feb 2024 01:30:00   America/New_York

    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 2023FY 2022 Q4 202324Q4 2022
    In EUR million

         		     
          
    Total contracts ('000)3,4201,806 3,4201,806
    Full service leasing contracts2,7091,464 2,7091,464
    Fleet management contracts710342 710342
    In EUR million     
    Leasing contract margin1,261.91,181.2 167.3428.1
    Services margin1,354.2715.1 452.3197.3
    Leasing contract & Services margins2,616.1 1,896.2  619.6625.5
    Used car sales result349.5747.6 (9.8)123.9
    Gross Operating Income2,965.6 2,643.9  609.9749.4
    Total operating expenses(1,591.6)(882.7) (510.8)(259.6)
    Cost / Income ratio excl. UCS60.8%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 result1,289.3 1,664.5  56.0425.4
    Share of profit of associates and jointly controlled entities6.41.7 1.60.3
    Profit before tax1,295.7 1,666.1  57.6425.7
    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 share816.2 1,215.5 28.71.7     

    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

    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 Jonville
    Chief Communications Officer
    Tel: +33 (0)6 46 14 81 90
    stephanie.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.

    “Ayvens” refers to the Company and its consolidated entities.

    The Information is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any trading strategy, and does not constitute a recommendation of, or advice regarding investment in, any security or an offer to provide, or solicitation with respect to, any securities-related services of the Company. This presentation is information given in a summary form and does not purport to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. Investors should consult the relevant offering documentation, with or without professional advice when deciding whether an investment is appropriate.

    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 millionQ4 2023Q4 202241Q Var.FY 2023FY 2022FY Var.
    Leasing contract revenues2,599.81,231.8111.1%8,033.74,803.967.2%
    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)6.3na(41.4)54.5na
    Leasing Contract Margin167.3428.1-60.9%1,261.91,181.26.8%
    Services Revenues1,376.4744.584.9%4,391.22,657.465.2%
    Cost of Services Revenues(924.1)(547.2)68.9%(3,037.0)(1,942.3)56.4%
    Services Margin452.3197.3129.2%1,354.2715.189.4%
    Leasing Contract and Services Margins619.6625.5-0.9%2,616.11,896.238.0%
    Proceeds of Cars Sold2,104.3963.8118.3%6,458.83,953.663.4%
    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%349.5747.6-53.2%
    Gross Operating Income609.9749.4-18.6%2,965.62,643.912.2%
    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 income7.20.0 11.80.0 
    Non-Recurring Income (Expenses)(25.9)0.0 (25.8)(0.0) 
    Operating Result56.0425.4-86.8%1,289.31,664.5-22.5%
    Share of Profit of Associates and Jointly xxControlled Entities1.60.3471.5%6.41.7283.7%
    Profit Before Tax57.6425.7-86.5%1,295.71,666.1-22.2%
    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 Period39.1286.9-86.4%844.11,220.2-30.8%
    Net income39.1286.9-86.4%844.11,220.2-30.8%
    Non-controlling interests10.42.1387.1%27.94.7494.9%
    Net income group share28.7284.7-89.9%816.21,215.5-32.8%

    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 million31 December 202331 December 2022(1)
    Earning assets52,02523,943
    o/w Rental fleet49,76523,227
    o/w Financial lease receivables2,260716
    Cash & Cash deposits with the ECB3,997253
    Intangibles (incl. goodwill)2,695745
    Operating lease and other receivables8,7963,514
    Other2,7481,762
    Assets of disposal group classified as held-for-sale01,085
    Total assets 70,26131,302
    Group shareholders' equity10,8266,876
    o/w Group shareholders’ equity excl. AT110,0766,876
    Tangible shareholders’ equity 7,3626,146
    o/w AT1(2)7500
    Non-controlling interests52637
    o/w non controlling interests excl. AT12837
    o/w non controlling interests - AT1(3)4980
    Total equity11,3526,912
    Deposits11,7850
    Financial debt37,62719,874
    Trade and other payables6,0352,929
    Other liabilities3,4631,360
    Liabilities of disposal group classified as held-for-sale0227
    Total liabilities and equity70,26131,302
    1. Restated for initial application of IFRS 17 “Insurance Contracts” to insurance subsidiaries from 1 January 2023
    2. AT1 issued by ALD and subscribed by parent Societe Generale
    3. AT1 issued by LeasePlan and subscribed by external parties

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

    Basic EPSFY 2023FY 2022
    Existing shares816,960,428565,745,096
    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 shares815,691,541564,571,194
       
    Weighted average number of shares used for EPS calculation(1) (A)711,058,063451,995,288
       
    in EUR million  
    Net income group share816.21,215.5(2)
    Deduction of interest on AT1 capital-45.00.0
    Net Income group share after deduction of interest on AT1 capital (B)771.21,215.5
      .
    Basic EPS (in EUR) (B/A)1.082.69
    DPS (in EUR) 0.471.06
     
    Diluted EPSFY 2023FY 2022
    Existing shares816,960,428565,745,096
    Shares issued for no consideration(3)18,216,7180
    End of period number of shares835,177,146565,745,096
       
    Weighted average number of shares used for EPS calculation(1) (A’)722,913,792453,169,190
       
    Diluted EPS (in EUR) (B/A’)1.072.68
    1. Average number of shares weighted by time apportionment
    2. Restated for IFRS 17, which applies from 1 January 2023
    3. Assuming exercise of warrants, as per IAS 33

    Return on tangible equity (ROTE)

    in EUR millionQ4 2023Q4 2022 FY 2023FY 2022
    Group shareholders' equity10,826.16,875.5 10,826.16,875.5
    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 reserves24.3(35.5) 24.3(35.5)
    Equity base for ROE calculation end of period9,677.66,241.2 9,677.66,241.2
          
    Goodwill1,990.9618.6 1,990.9618.6
    Intangible assets703.9126.6 703.9126.6
          
    Average equity base for ROE calculation9,680.65,596.4 7,959.45,311.3
    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 calculation6,837.74,854.9 6,239.44,606.3
          
    Group net income after non-controlling interests28.7284.7 816.21,215.5
    Interest on AT1 capital(18.5)0.0 (45.0)0.0
    Adjusted Group net income10.2284.7 771.21,215.5
          
    ROTE0.6%23.5% 12.4%26.4%
    1. 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 million31 December 202330 September 202330 June 2023
    Group shareholder’s equity10,82610,84110,585
    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 adjustments183196153
        
    Common Equity Tier 1 capital7,1416,8976,783
        
    AT1 capital750750750
        
    Tier 1 capital7,8917,6487,533
        
    Tier 2 capital1,5001,5001,500
        
    Total capital (Tier 1 + Tier 2)9,3919,1489,033
        
    Risk-Weighted Assets57,37756,00254,293
    Credit Risk Weighted Assets49,03448,09746,039
    Market Risk Weighted Assets1,9932,3622,558
    Operational Risk Weighted Assets6,3505,5435,696
        
    Common Equity Tier 1 ratio12.5%12.3%12.5%
    Tier 1 ratio13.8%13.7%13.9%
    Total Capital ratio16.4%16.3%16.6%
    1. 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 million31 December 202330 September 202330 June 2023
    Group shareholders' equity10,82610,84110,585
    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 shares181818
        
    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) 815,691,541815,699,794815,705,590
    NAV per share12.3312.3712.08
    NTAV per share9.038.708.49
    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  ALDLeasePlanAyvens ALDLeasePlanAyvens ALDLeasePlanAyvens ALDLeasePlanAyvens
    Leasing contract and services margins  1,817.72,230.44 048.0 1,902.31,500.53,403.1 84.9-729.9-645.0 4.7%-32.7%-15.9%
    Reduction in depreciation costs  350.3435.0785.3 514.6177.9692.5 164.3-257.1-270.7    
    Fleet revaluation  72.20.072.2 38.60.038.6 -33.60.0-33.6    
    Hyperinflation in Turkey  59.966.0125.9 24.135.059.1 -35.7-31.0-66.7    
    Ukraine provision  -3.60.0-3.6 0.00.00.0 3.60.03.6    
    MtM of derivatives  -1.8247.0245.2 15.8-224.2-208.4 17.6-471.2-453.6    
    PPA impact  0.00.00.0 0.017.717.7 0.017.717.7    
    Underlying leasing contract and services margins (excluding reduction in depreciation costs, non-operating items and PPA impact) 1,340.71,482.42,823.0 1,309.51,494.02,803.5 -31.311.6-19.6 -2.3%0.8%-0.7%
     
                      

     

       Q4 2022 Q4 2023 Variation Variation %
     In EUR million  ALDLeasePlanAyvens ALDLeasePlanAyvens ALDLeasePlanAyvens ALDLeasePlanAyvens 
                       
    Leasing contract and services margins  605.1624.81 229.9 388.2231.4619.6 -217.0-393.4-610.3 -35.9%-63.0%-49.6% 
    Reduction in depreciation costs  220.3242.2462.5 88.90.088.9 164.3-435.0-270.7     
    Fleet revaluation  12.50.012.5 18.20.018.2 -33.50.0-33.5     
    Hyperinflation in Turkey  3.416.019.4 -27.51.0-26.5 -35.7-31.0-66.7     
    Ukraine provision  21.40.021.4 0.00.00.0 3.60.03.6     
    MtM of derivatives  0.0-13.8-13.8 12.4-149.8-137.4 17.6-471.2-453.6     
    PPA impact  0.00.00.0 0.017.717.7 0.017.717.7     
                       
    Underlying leasing contract and services margins (excluding reduction in depreciation costs, non-operating items and PPA impact) 347.6380.4728.0 296.2362.5658.7 -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 ALDLeasePlanAyvens ALDLeasePlanAyvens ALDLeasePlanAyvens ALDLeasePlanAyvens
    Leasing contract and services margins 1,817.72,230.44,048.0 1,902.31,500.53,403.1 84.9-729.9-645.0 4.7%-32.7%-15.9%
    Reduction in depreciation costs(1) 350.3435.0785.3 514.6177.9692.5 164.3-257.1-270.7    
    Non-operating items 126.6313.0439.6 78.5-189.2-110.7 -48.1-502.2-550.3    
    PPA impact 0.00.00.0 0.017.717.7 0.017.717.7    
    Underlying leasing contract and services margins (excluding non-recurring items and PPA impact) 1,340.71,482.42,823.0 1,309.51,494.02,803.5 -31.311.6-19.6 -2.3%0.8%-0.7%
    Used car sales result 685.2602.41,287.6 397.038.8354.4 -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 0.00.00.0 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) 796.1719.41,515.5 709.2634.01,343.2 -86.9-85.4-172.3 -10.9%-11.9%-11.4%
    Gross operating income 2,502.92,832.85,335.7 2,299.61,539.33,838.9 -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) 2,137.22,201.84,339.0 2,018.72,128.04,146.7 -118.2-73.8-192.0 -5.5%-3.4%-4.4%
    1. 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 ALDLeasePlanAyvens ALDLeasePlanAyvens ALDLeasePlanAyvens ALDLeasePlanAyvens
    Leasing contract and services margins 605.1624.81,229.9 388.2231.4619.6 -217.0-393.4-610.3 -35.9%-63.0%-49.6%
    Reduction in depreciation costs(1) 220.3242.2462.5 88.90.088.9 -131.4-242.2-373.6    
    Non-operating items 37.32.239.5 3.1-148.8-145.7 -34.1-151.0-185.2    
    PPA impact 0.00.00.0 0.017.717.7 0.017.717.7    
    Underlying leasing contract and services margins (excluding non-recurring items and PPA impact) 347.6380.4728.0 296.2362.5658.7 -51.4-17.9-69.3 -14.8%-4.7%-9.5%
    Used car sales result 105,276,5181,7 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 -13.0106.9-119.9    
    PPA impact 0.00.00.0 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) 178.5193.5372.0 124.3369.0493.2 -54.2175.5121.2 -30.4%90.7%32.6%
    Gross operating income 710.3701.31,411.6 426.2183.7609.9 -284.2-517.6-801.8 -40.0%-73.8%-56.8%
    Underlying gross operating income (excluding non-recurring items and PPA impact) 526.1573.91,100.0 420.5731.51,151.9 -105.6157.652.0 -20.1%27.5%4.7%
    1. 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 -168.59.3%
    Cost to achieve  -128.0-170.0 -42,0 
    Consultancy costs and transaction/rebranding costs  -70.1-36.2 33.9 
    PPA impact  0.010.4 10.4 
            
    Underlying operating expenses (excluding non-recurring items and PPA impact) -1,620.9-1,791.8 -170.810.5%
    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  0.010.4 10.4 
            
    Underlying operating expenses (excluding non-recurring items and PPA impact) -447.2-454.8 -7.71.7%
    Underlying cost / Income ratio (excluding non-recurring items and PPA impact)

    		  61.4%69.1% +7.7 pts 

    Restated quarterly series

    (in EUR million)1Q1 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 Margin171.4308.1273.4428.1367.1387.5341.6165.8
    Services Margin160.0172.6185.1197.3174.1311.4425.4443.3
    Leasing Contract and Services Margins331.5480.8458.6625.5541.1698.9767.0609.1
    Used Car Sales result215.2217.4191.0123.9190.587.075.5(3.5)
    Gross Operating Income546.7698.2649.6749.4731.6785.9842.5605.6
    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)0.00.00.0(50.6)(20.6)33.1(12.4)(14.1)
    Share of profit of associates and jointly controlled entities0.90.20.30.30.80.83.31.6
    Profit Before Tax352.2471.2417.1425.7442.6434.3367.151.8
    Income tax expense(92.4)(116.6)(98.3)(138.8)(125.6)(101.4)(134.0)(13.0)
    Result from discontinued operations0.00.00.00.00.0(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)257.7355.1318.0284.7315.5236.7235.928.2
             
    (in '000)31.03.202230.06.202230.09.202231.12.202231.03.202330.06.202330.09.202331.12.2023
    Total Contracts1,7371,7611,7621,8061,8153,4963,3943,420
    Full service leasing contracts1,4361,4481,4541,4641,4732,7552,6922,709
    Fleet management contracts301313308342342741703710
    1. The sum of rounded values contained in the table may differ slightly from the totals reported, due to rounding rules
    2. Restated for IFRS 17, which applies from 1 January 2023
    3. 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)
    4. 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 entities
    2 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 2024
    3 Net carrying amount of the rental fleet plus net receivables on finance leases
    4 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 PPA
    6 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 2022
    7 Excluding UCS result, non-recurring items and impact of PPA
    8 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 Shareholders
    10 Based on Net income group share after deduction of interest on AT1 capital
    11 Excluding UCS result, non-recurring items and impact of PPA
    12 Of net income Group share, after deduction of interest on AT1 capital
    13 Petrol, Diesel, Fuel cell, Gas, Flex Fuel, Full Hybrids, Mild Hybrids and others
    14 Depending on subsidies from governments
    15 Next Generation Digital Architecture
    16 On a like-for-like basis
    17 Management information, in EU+: European Union, UK, Norway, Switzerland
    18 Source: ACEA
    19 Compared to LeasePlan’s books
    20 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 2023
    25 Excluding non-operating items and PPA
    26 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 transaction
    28 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 appendix
    29 Excluding non-operating items and PPA
    30 Reversal of reduction in depreciation costs accounted for by LeasePlan up until closing
    31 Management information
    32 Management information
    33 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 capital
    38 Excluding Additional Tier 1 capital
    39 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

     

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