Integration proceeding well and Q1 2024 financial results in line with plans
Q1 2024 results
Leasing contract and Services margins at EUR 706.6 million, up 30.6% vs. Q1 2023, driven by the consolidation of LeasePlan and up 16.0% vs. Q4 2023 1, on the back of stabilizing underlying margins 2, materialization in P&L of synergies with LeasePlan and limited non-recurring items Used car sales (UCS) result per unit at EUR 1,6613 in Q1 2024 excluding the impacts of reduction in depreciation costs and Purchase Price Allocation (PPA), stable vs. Q4 2023 (EUR 1,706). UCS result per unit at EUR 626 including the impacts of reduction in depreciation costs and PPA Cost to income ratio4 at 67.7%, improving from 68.4% in Q4 2023 Cost of risk5 at 25 bps vs. 19 bps in Q4 2023 Net income (group share) at EUR 187.8 million, up from EUR 28.2m in Q4 2023, which was impacted by various non-recurring items Return on Tangible Equity (ROTE)6 at 9.6% Earnings per share7 at EUR 0.20 Earning assets8 up 12.5% vs. end March 2023, underpinned by the sharp increase in vehicle value CET1 ratio at 12.3% as at end March 2024
On 3 May 2024, Tim Albertsen, CEO of Ayvens, commenting on the Q1 2024 Group results, stated:
I am glad that Ayvens started 2024 on a positive note in several aspects, which puts us in a strong position to achieve our objectives.
First, in a mixed economic environment, where demand slowed, we recorded good Q1 2024 financial results and a clear upturn on the previous quarter, despite the weakening of the BEV10 used car market. This promising performance reflects the solidity of our business model, as well as our agility and our capacity to swiftly implement our strategic roadmap.
Meanwhile, we recorded synergies from the LeasePlan acquisition for the first time in our income statement this quarter. This demonstrates the power of scale and the high potential for value creation for our stakeholders. Thanks to our unrivalled leadership, not only are we buying and selling more efficiently, but we’re also strengthening our competitive edge.
Finally, the obtention in March, of regulatory approvals to proceed with the merger and streamlining of our operations is a key milestone, allowing us to accelerate the integration and to deliver further synergies.
All this has been achieved thanks to the hard work of our teams, who have demonstrated the utmost team spirit and commitment to this transformational journey.
1Impact of LeasePlan’s Purchase Price Allocation (PPA) attributed to each quarter since acquisition closing on 22 May 2023 (instead of the 2023 impact being allocated to Q4 2023 only) 2Leasing contract and Services margins excluding non-recurring items and LeasePlan’s Purchase Price Allocation (PPA) 3Management information 4Excluding UCS result, non-recurring items and impact of PPA 5Annualized impairment charges on receivables expressed as a percentage of average earning assets 6Net income group share after deduction of interest on AT1 capital divided by average shareholder equity before non‑controlling interests, goodwill and intangible assets 7Diluted Earnings per share, calculated according to IAS 33. Basic EPS for Q1 2024 at EUR 0.21 8Net carrying amount of the rental fleet plus net receivables on finance leases 9On a like-for-like basis 10Battery Electric Vehicle