ANNUAL FINANCIAL INFORMATION ALD reports full year 2022 results [1]

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  RECORD NET INCOME (GROUP SHARE): EUR 1,203.2 MILLION, UP 38% VS. 2021

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  CONTINUED POSITIVE COMMERCIAL DYNAMICS: FUNDED FLEET UP 3.1%2 VS. END DECEMBER 2021, IN LINE WITH THE +2/+4% GUIDANCE

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  TOTAL MARGINS3 UP 31.7% WHEN ADJUSTED FOR NON-OPERATING ITEMS4

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  EXCEPTIONALLY HIGH USED CAR SALES RESULT PER UNIT: EUR 2,846 IN 2022, INCLUDING IMPACT OF DEPRECIATION ADJUSTMENTS FROM PRIOR QUARTERS

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  LEASEPLAN ACQUISITION-RELATED COSTS: EUR 128 MILLION INCURRED IN 2022

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  PROPOSED DIVIDEND: EUR 1.06 (PAYOUT RATIO OF 50%)

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  SUCCESSFUL EUR 1.2 BILLION RIGHTS ISSUE COMPLETED END 2022, SECURING THE FINANCING OF THE ACQUISITION OF LEASEPLAN

2022 Results highlights

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  Total Contracts 1.806 million contracts managed worldwide at Dec 2022
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  Funded fleet⁵ 1.413 million vehicles, up 3.1% vs. Dec 2021
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  Leasing Contract and Services Margins at EUR 1,884.2 million, up 36.3% vs. 2021 and up 31.7% vs. last year when adjusted for non-operating items: fleet revaluation (EUR +72.2 million), impact of hyperinflation accounting rules in Turkey (EUR +59.9 million) and a provision in Ukraine (EUR -3.6 million)
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  Used Car Sales result at EUR 747.6 million, vs. EUR 437.7 million in 2021
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  Operating expenses at EUR 884.3 million, including EUR 128 million LeasePlan acquisition-related costs and EUR 31.5 million scope effect
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  Cost of Risk at 20 bps6
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  Earnings per share⁷ at EUR 2.66, up 35% vs. 20218
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  Proposed dividend of EUR 1.06 per share9
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  ROE at 20.6% vs. 19.5% in 2021
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  Total Equity/Total Assets ratio at 22.0% vs. 18.0% at Dec 2021. Equity/Total Assets ratio restated net of proposed dividend at 20.1% at Dec 2022

Outlook for 2023

In a fast-changing environment where monetary policies were focused on fighting inflation, economies proved resilient in 2022. In the current geopolitical context and taking into account China’s reopening, ALD anticipates that supply chains will only gradually return back to normal, leading new car supply to normalise later than previously anticipated, towards the end of 2023. Against this backdrop, the favourable supply/demand situation in the used car markets is expected to remain in place in 2023.

ALD is currently finalising its integration plan for LeasePlan to be ready to start executing it as soon as the acquisition closes. ALD expects to provide operational guidance for the combined entity for 2023 after the closing of the acquisition.

On 8 February 2023, Tim Albertsen, ALD CEO, commenting on the full year 2022 Group Results, stated: “In spite of a deteriorating geopolitical and macroeconomic environment, with continued disruptions of supply chains, ALD recorded a landmark year. We generated a net result well above one billion euros for the first time in our history, confirming the solidity of our business model through the cycle and our agility in challenging situations. This record financial performance reflects the commitment of our employees to achieve the highest standards of service quality and to fuel business growth in new market segments with innovative products, while maintaining a strong focus on operational excellence.

Alongside this record performance, ALD has reached key milestones towards the acquisition of LeasePlan. With our successful rights issue end of 2022, we have secured the financing of the acquisition, which we target to close on 31 March 2023, subject to all conditions precedent being met. We have also finalised our plans for an efficient integration and are now ready to welcome the LeasePlan teams and start a new chapter of our development, where the combined entity will be ideally positioned to lead the transformation of the mobility industry. Both ALD and LeasePlan teams are excited about the future ahead and fully committed to generating value for our customers and shareholders”.

Read the Press Release

^[1] Excluding assets held-for-sale (Russia, Belarus, Portugal, Ireland and Norway except NF Fleet Norway). These entities are held-for-sale assets under IFRS 5 but don’t represent a major line of business or geographical area of operations

^[2] Leasing contract and Services margins

^[3] Fleet revaluation, hyperinflation in Turkey and provision in Ukraine

^[4] Excluding 51k vehicles in Russia, Belarus and remedies agreed with antitrust authorities (Portugal, Ireland and Norway except NF Fleet Norway)

^[5] Impairment charges on receivables as a percentage of Average Earning Assets

^[6] Diluted Earnings per share, calculated on a weighted average number of shares, according to IAS 33. Basic EPS for 2022 at EUR 2.66

^[7] 2021 diluted EPS adjusted for rights issue in 2022: EUR 1.97

^[8] Distribution of 50% of net income (Group share) to outstanding shares post rights issue. While the closing of the LeasePlan acquisition is expected before the payment of the 2022 dividend, the current shareholders of LeasePlan will not receive this dividend