LeasePlan announces Q4 and Full Year 2020 results
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, reports its Q4 results
Q4 and Full Year 2020 financial highlights
- Net result of EUR 45 million (full year EUR 253 million)
- Underlying net result of EUR 89 million (full year EUR 406 million) including increased operating expenses related to investments in growth, digital platforms and CarNext.com
- Serviced fleet growth flat for the full year at 1.9 million vehicles
- Underlying Lease and Additional Services gross profit of EUR 343 million (-12.0%) in the quarter and EUR 1,377 million (-10.2%) for the full year, impacted by reduced income and rebates & bonuses from lower business activity and increasing costs for expected credit losses, only partially offset by strong Damage Services & Insurance results
- PLDV and End of Contract Fees Gross Profit of EUR 18 million in the quarter and EUR 41 million for the full year (+13.1%) benefitting from used-car pricing at or above pre-COVID levels
- Operating expenses of EUR 252 million (+14.2%) in the quarter and EUR 856 million (+1.8%) for the full year due to increased investments in growth and digital platforms offset by tight cost control across the year
- Underlying net result of EUR 112 million in the quarter (-19.9%) and EUR 486 million for the full year (-19.7%), despite COVID19-related impacts, demonstrating the strong resilience of the business model
- Revenues of EUR 37 million (+20.9%) in the quarter and EUR 138 million (+15.7%) for the full year, driven by higher third-party sales and ancillary services partially offset by 24.5% lower B2C retail sales (full year -2.5%) due to COVID-19-related temporary store closures
- Underlying net result of EUR –23 million, including EUR 9 million additional strategic investments in key markets focussed on accelerating future growth.
- Year-end liquidity buffer of EUR 7.1 billion
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% YoY Growth
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Serviced fleet (thousand) as at 31 December
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Underlying net result (EUR Million)
Car as a Service
Net result (EUR Million)
Underlying return on equityequity(2)
Commenting on the results, Tex Gunning, CEO of LeasePlan, said:
“LeasePlan delivered a solid underlying net result of EUR 406 million despite exceptionally challenging circumstances and investments in growth, digital platforms and CarNext.com. Most importantly, we were able to safely support our customers and employees throughout a very challenging year. Looking back on 2020, we are very grateful to our customers for their loyalty and cooperation in these exceptional times, and we are very proud of LeasePlanners across the world for their competence, dedication and resilience while working from home since March.
Our Car-as-a-Service business delivered a robust underlying net result of EUR 486 million. The lockdowns increased demand for e-commerce related delivery vehicles and we saw strong growth in our private lease fleet. Covid-related supply chain constraints slowed overall growth and had a negative impact on volume-related rebates and bonuses. Given the economic impact of Covid on our customers, we also had to take provisions for expected credit losses.
CarNext.com, our digital used-car marketplace, performed well with online sales more than doubling and revenues up over 15%, with customers showing strong demand for our new range of e-commerce services, including virtual car appointments and click & collect, as well as our expanding range of ancillary services. While B2C retail sales were lower due to COVID-related store closures, we saw a recovery in used-car pricing across all markets, with pricing at or above pre-COVID levels.
Throughout 2020, LeasePlan continued to lead the sustainability agenda in our industry, clearly demonstrating the pivotal role that large EV fleets play in tackling climate change. 2020 was the greenest year in the history of LeasePlan, with EVs and plug-in hybrids now representing 16.5% of all our new orders. Looking ahead, we will continue to advocate for accelerated growth in public charging infrastructure and longterm incentives for green driving, ensuring EVs become the common sense choice for all drivers in the New Normal.
Overall, LeasePlan finished the year in line with the plans we set out at the beginning of the crisis. Despite ongoing restrictions in many markets, we are confident in our ability to withstand any further market disruptions due to the fundamental resilience of our business. Moreover, we are very positive about the what’s next for our business and our industry, as the pandemic accelerates demand for delivery vehicles and safe, personal vehicle subscriptions among SMEs and private customers. Going forward, we will unlock this significant growthpotential through our continued transition to a fully digital business model, which not only enables us to improve the service we deliver to our customers at lower cost, but will also allow us to integrate a range of new products and revenue streams into our Car-as-a-Service ecosystem.”