LeasePlan has been present in Denmark for almost 30 years and was established globally more than 50 years ago. History has shown that good times are replaced by less good times, and as our ambition remains to be the player that defines industry developments, it is essential to ensure that we have a balanced approach to risk at all times.
This means, for example, that not everyone can become a customer of LeasePlan, which can be read in the credit quality of our portfolio. It also means that it is essential for LeasePlan that our underlying basis of our business is robust so we at any time are able to overcome any hurdles along the way in the event that the used car market suddenly falls sharply (as it did for example over 10 years ago as a result of the financial crisis and which we also see now in connection with the corona crisis).
Our approach also indicates that we always have strong and flexible capital resources as well as an appropriate solidity. Equity for LeasePlan Denmark amounts to almost DKK 700m at the end of 2019, corresponding to approx. 25% of the book value of our vehicles.
Overall, it is our assessment that LeasePlan Denmark is in a strong position at the beginning of 2020.