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Leaseplan Announces Q1 2021 Results

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Leaseplan Announces Q1 2021 Results LeasePlan announces Q1 2021 results AMSTERDAM, the Netherlands, 12 May 2021 – LeasePlan Corporation N.V. (“LeasePlan”; the “Company”), one of the world’s leading Car- as-a-Service (“CaaS”) companies and a leading pan-European used-car market place, today reports its Q1 results. Q1 2021 financial highlights • Net result of EUR 181 million (+810%) • Underlying net result of EUR 166 million (+44.8%) • Car-as-a-Service: • Underlying Lease and Additional Services gross profit of EUR 366 million (+1.0%) driven by strong Damage Services & Insurance results and lower costs for expected credit losses • PLDV and End of Contract Fees Gross Profit of EUR 61 million (+536%) primarily driven by favourable used-car pricing • Operating expenses of EUR 205 million (+5.8%) which includes continued investments in our digital platforms • Underlying net result of EUR 190 million (+37.9%) • CarNext: • Revenues stable at EUR 169 million (-1.5%) with lower B2C retail sales (-18.4%) due to COVID-19-related temporary store closures, offset by increased third-party and ancillary services sales • Underlying net result of EUR –24 million (-4.0%) including continued investments in key markets focussed on accelerating future growth • Announcement of Sale and Purchase Agreement through which LeasePlan will divest 100% of its shares in LeasePlan Australia and New Zealand to SG Fleet. LeasePlan will hold a 13.0% stake in SG Fleet post-closing of the transaction • Quarter-end liquidity buffer of EUR 7.6 billion Key numbers123 Q1 2021 Q1 2020 % YoY Growth VOLUME Serviced fleet (thousands), as at 31 March3 1,861.8 1,858.7 0.2% Numbers of vehicles sold (thousands) 77.3 74.8 3.4% PROFITABILITY Underlying net result (EUR Million) 166.1 114.7 44.8% - Car-as-a-Service 190.2 137.9 37.9% - CarNext −24.1 −23.2 −4.0% Net result (EUR Million) 180.6 19.8 810.4% Underlying return on equity2 11.5% 13.8% 1 Due to rounding, numbers throughout this release might not add up precisely to the totals provided. Percentages are calculated based on un-rounded numbers. 2 Underlying RoE is based on last-twelve-month underlying net result and equity excluding the additional Tier 1 instrument. Including the AT1, RoE is 11.0% for Q1 2021 and 13.1 % for Q1 2020 3 Serviced fleet including fleet from discontinued operations LeasePlan Q1 report 2021 1 Commenting on the first quarter results, Tex Gunning, CEO of LeasePlan, said: “This was the best quarter in the history of LeasePlan. This excellent performance is a reflection of the plan we put in place over a year ago to manage the impact of the COVID-19 crisis on our business, and was supported by strong used-car pricing, strong Damage and Insurance results, and lower than expected customer defaults due to our high-quality customer base. The underlying strength of our business is confirmed by our record-high order book, although the global shortage of computer chips means some of this growth will be deferred to later in the year. We also continued to lead the transition to zero emission mobility in the industry, with EVs now representing 16.9% of new orders in Q1. In addition, CarNext made good progress in the quarter with the expansion of its ancillary service offering and online sales increasing exponentially. Looking forward, we’re very excited about what’s next. The subscription megatrend means there is significant growth potential in all our key market segments. We are well placed to capture this growth thanks to our continuing transformation from a local analogue business model to a completely digital global business model, underpinned by our Next Generation Digital Architecture. Our approach is already producing results, including rapid growth in online sales in the SME and Private segments, which we expect will only accelerate as the digital leasing market expands.” Group performance In millions of euros, unless otherwise stated Q1 2021 Q1 2020 % YoY Growth Lease & Additional Services income 1,592.2 1,696.4 −6.1% Vehicle Sales and End of contract fees 899.8 850.4 5.8% Revenues 2,492.1 2,546.8 −2.2% Underlying cost of revenues 2,060.0 2,190.4 −6.0% Lease Services 153.3 142.5 7.6% Fleet Management & other Services 50.5 65.4 −22.9% Repair & Maintenance Services 72.5 74.2 −2.3% Damage Services and Insurance 89.3 81.4 9.8% Underlying Lease and Additional Services gross profit 365.6 363.5 0.6% End of contract fees 37.7 38.8 −3.0% Profit/Loss on disposal of vehicles 28.8 −45.9 162.8% Profit/Loss on disposal of vehicles and End of contract fees gross profit 66.5 −7.1 1040.9% Underlying gross profit 432.1 356.4 21.2% Underlying operating expenses 242.9 232.3 4.6% Share of profit of investments accounted for using the equity method 1.0 1.0 −2.6% Underlying profit before tax 190.2 125.1 52.0% Underlying tax 33.5 18.3 83.1% Underlying net result from continuing operations 156.7 106.9 46.7% Underlying net result from discontinued operations 9.4 7.8 19.7% Underlying net result 166.1 114.7 44.8% Underlying adjustments 14.5 −94.8 Reported net result 180.6 19.8 810.4% Staff (FTE's at period end) 8,655 8,136 6.4% LeasePlan Q1 report 2021 2 Financial Performance Q1 Revenues decreased by 2.2% to EUR 2,492 million. Lease and Additional Services income was down by 6.1% to EUR 1,592 million due to fleet mix and FX impact. Vehicle Sales and End of contract fees were up by 5.8% to EUR 900 million driven by a higher amount of vehicles sold (+3.4%) and beneficial used-car pricing. Underlying Lease and Additional Services gross profit was up 0.6% to EUR 366 million driven by serviced fleet growth (+0.2%), strong Damage Services & Insurance results (+9.8%) and a reduction to the provision for expected credit losses. The lower provision reflects the updated IFRS 9 estimated-credit-loss calculations and lower defaults. PLDV and EOCF gross profit was up to EUR 66 million driven by the higher amount of vehicles sold and favourable used-car pricing despite a second wave of national lockdowns. Underlying operating expenses were up 4.6% to EUR 243 million which includes continued investments in our digital platforms. The underlying tax rate was up 3.0 percentage points to 17.6% driven by a blend of statutory rates and the phasing out of the favourable impact of the Italian super-depreciation facility. Underlying net result from continued operations was up by 46.7% to EUR 157 million driven by higher PLDV & EOCF gross profit, strong Damage Services & Insurance results and lower credit losses. Underlying net result from discontinued operations of EUR 9 million following the announcement of the Sale and Purchase Agreement through which LeasePlan Corporation will, subject to the necessary approvals, divest 100% of its shares in LeasePlan Australia and Leaseplan New Zealand to SG Fleet (announced on March 31 2021). Underlying net result of EUR 166 million (+44.8%) representing the strongest quarterly financial results in our history. Reported net result was up to EUR 181 million, including a positive impact from underlying adjustments of EUR 14 million arising from a positive mark-to-market result on derivatives partially offset from costs mainly related to the CarNext BU set-up. Segment reporting Car-as-a-Service and CarNext In order to better reflect how LeasePlan manages its two businesses, we are reporting Car-as-a-Service and CarNext separately. LeasePlan Q1 report 2021 3 Financial Performance Car-as-a-Service In thousands Q1 2021 Q1 2020 % YoY Growth Serviced fleet, as at 31 March 1,861.8 1,858.7 0.2% Numbers of vehicles sold, as at 31 March 77.3 74.8 3.4% of which through CarNext 58.6 68.7 −14.7% in millions of euros Q1 2021 Q1 2020 % YoY Growth Lease and Additional Services income 1,592.5 1,696.4 −6.1% Vehicle sales and End of contract fees 947.2 847.3 11.8% Revenues 2,539.7 2,543.7 −0.2% Underlying cost of revenues 2,112.8 2,195.0 −3.7% Underlying Lease and Additional Services gross profit 366.3 362.6 1.0% Profit/Loss on disposal of vehicles and End of contract fees gross profit 60.7 −13.9 536.3% Underlying gross profit 426.9 348.7 22.4% Underlying operating expenses 204.9 193.6 5.8% Share of profit in equity accounted investments 1.0 1.0 −2.6% Underlying profit before tax 223.0 156.1 42.9% Underlying tax 42.2 26.0 62.0% Underlying net result from continuing operations 180.8 130.0 39.0% Underlying net result from discontinued operations 9.4 7.8 19.7% Underlying net result 190.2 137.9 37.9% Serviced fleet was up 0.2% to 1.9 million vehicles. Despite a strong order book in Q1 2021, fleet growth was impacted by OEM supply chain disruptions mainly coming from the global shortage of computer chips. Revenues decreased by 0.2% to EUR 2,540 million. Lease and Additional Services income was down by 6.1% to EUR 1,593 million due to fleet mix and FX impact. Vehicle Sales and End of Contract fees were up by 11.8% to EUR 947 million driven by a higher amount of vehicles sold (+3.4%) and beneficial used-car pricing.
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