‘Any car, anytime, anywhere’: LeasePlan announces Strategic Update and strong results for 2017
AMSTERDAM, Netherlands, 13 February 2018 – LeasePlan Corporation N.V., a global leader in fleet management and mobility solutions, reported strong results today for 2017. LeasePlan also announced a Strategic Update to the ‘any car, anytime, anywhere’ service.
Financial Highlights of 2017
- Underlying net result ¹ of EUR 532 million, up 17% year-on-year, one year since operating expenses were increased by EUR 40 million to invest in long term growth
- Net result of EUR 467 million, up 10% compared with 2016
- Underlying return on equity 16.7%, up 173 bps
- Service fleet² growth of 5.5% with 1.7 million cars on the road
- ‘The Power of One LeasePlan’ operational excellence programme allowed savings of EUR 130 million to be achieved
Clear strategic focus on two large and growing markets in Europe:
'Car-as-a-Service' (CaaS) for new cars, a market with a growth of EUR 68 billion
- High-quality 3-4-year-old used car market, a market with a growth of EUR 65 billion
- LeasePlan is focused on leading the megatrend - shifting from ownership to usership and subscription - in both the new and high-quality used car markets, and, ultimately, on the ‘any car, anytime, anywhere’ service
- Introducing CarNext.com: a disruptive B2C and B2B digital market that allows customers to purchase, lease and subscribe to high-quality used cars in Europe
- Continuing to deliver ‘The Power of One LeasePlan’, a programme to drive global operational excellence, implementing best practices and leveraging LeasePlan’s scale in all elements of the value chain and in all LeasePlan countries. ‘The Power of One LeasePlan’ is targeting a EUR 370 million underlying profit before tax in the medium term compared to the 2016 baseline
- Launching LeasePlan Digital to transform the company from an analogue business into a fully digital business, offering digital services at digital costs, leveraging the latest digital intelligence technologies
- Commitment to leading the transition from internal combustion engines to alternative powertrain fleets, targeting net zero emissions from LeasePlan’s fleet by 2030
Tex Gunning, LeasePlan CEO
“Looking ahead, we can achieve a lot 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 – prefer a ‘Car-as-a-Service’ with no restrictions 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 in which we will continue to invest. We are also in a unique position to lead the growing EUR 65 billion Car-as-a-Service market for high-quality 3-4-year-old used cars thanks to the introduction of our new CarNext.com business. CarNext.com is a disruptive B2C and B2B digital market that allows customers to purchase, lease and subscribe to high-quality used cars in Europe
Our leadership in these two markets, as well as our continuing focus on operational excellence and cost control throughout the business, will be further strengthened by our new LeasePlan Digital programme. The objective of LeasePlan Digital is simple: to offer first 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 the next step for LeasePlan.”
¹This press release has not been audited. The underlying net result consists of the net result adjusted by the unrealised results on financial instruments, one-time items related to the sale of subsidiaries, restructuring charges and consultancy costs related to ‘The Power of One LeasePlan’, preparation cost for potential IPO and the respective tax effect. For a reconciliation between underlying net result and the reported IFRS net result, refer to the table on page 20 of this press release here.
²Service fleet - total funded fleet plus services-only fleet ²Source: Embracing the Car-as-a-Service model – The European leasing and fleet management market, Roland Berger, January 2018, commissioned by LeasePlan.