LeasePlan announces Strategic Update and strong Full Year 2017 results

LeasePlan Corporation N.V., a global leader in fleet management and driver mobility, today reports strong Full Year 2017 results. LeasePlan also announces a Strategic Update to deliver ‘any car, anytime, anywhere’.

February 13, 2018
 

Financial Highlights Full Year 2017

  • Underlying net result1 of EUR 532 million, up 17% year on year after EUR 40 million of incremental operating expenses to invest in long term growth
  • Net result of EUR 467 million, up 10% versus 2016
  • Underlying return on equity 16.7%, up 173 bps
  • Serviced fleet2 growth of 5.5% with 1.7 million cars on the road
  • ‘The Power of One LeasePlan’ operational excellence programme delivered savings of EUR 130 million

Strategic Highlights

  • Clear strategic focus on two large and growing markets in Europe3:
  • ‘Car-as-a-Service’ (CaaS) for new cars, a growing EUR 68 billion market
  • High-quality 3-4-year-old used car market, a growing EUR 65 billion market
  • LeasePlan is focused on leading the megatrend from ownership to usership to subscription in both the new and high-quality used car markets, and on ultimately delivering ‘any car, anytime, anywhere’
  • Introducing CarNext.com: a disruptive B2C and B2B digital marketplace that enables customers to buy, lease and subscribe to high-quality used cars in Europe
  • Continuing to deliver ‘The Power of One LeasePlan’, a programme to drive operational excellence globally by implementing best practices and leveraging LeasePlan’s scale along all elements of the value chain and across all LeasePlan countries. ‘The Power of One LeasePlan’ is targeting a EUR 370 million underlying profit before tax uplift in the medium term compared to the 2016 baseline
  • Launching LeasePlan Digital to transform the company from an analogue business into a fully digitally-enabled business, delivering digital services at digital cost levels, leveraging the latest digital intelligence technologies
  • Commitment to lead the transition from internal combustion engines to alternative powertrain fleets, targeting net zero emissions from LeasePlan’s fleet by 2030

Tex Gunning, LeasePlan CEO:

“I am delighted to announce yet another excellent set of results for LeasePlan in 2017. We have more cars on the road than ever before, and at the same time, our underlying net result and return on equity continued to increase significantly. These results underline the strong and resilient nature of our business as well as the ongoing positive impact of our ‘The Power of One LeasePlan’ operational excellence initiative, which was successfully launched in 2017.

Looking ahead, we can achieve so much more. There is a clear megatrend from ownership to usership and subscription models taking place in both the new and high-quality used car markets. Increasingly, our customers – whether they are corporate, SMEs or private individuals – would prefer a ‘Car-as-a-Service’ with no strings attached in terms of car type or duration. They just want ‘any car, anytime, anywhere’.

LeasePlan will lead this trend. With 1.7 million cars on the road in 32 countries, we are already a global leader in providing our customers with Car-as-a-Service for new cars – a business we will continue to invest in. We are also in a unique position to lead the growing €65 billion Car-as-a-Service market for high-quality 3-4-year-old cars thanks to the introduction of our new CarNext.com business. CarNext.com is a disruptive B2C and B2B digital marketplace that enables customers to buy, lease and subscribe to high-quality used cars in Europe.

Our leadership position across these two markets, as well as our continuing focus on operational excellence and cost control across the company, will be further enhanced by our new LeasePlan Digital programme. The objective of LeasePlan Digital is simple: to deliver best-in-class digital services to all our customers in all areas of our business at digital cost levels, leveraging the latest digital technologies. Ultimately, this is how we provide our customers with ‘any car, anytime, anywhere’. This is what’s next for LeasePlan.”

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