1. Maintain the strength and resilience of our business
Our first priority will always be to ensure that we maintain and enhance those aspects of our business that are key to our ongoing strength and resilience.
Significant scale advantages
50 years’ experience has created one of the largest car leasing companies in the world, with almost 1.7 million cars under management. Our scale enables us to leverage our buying power when purchasing new cars, invest in new processes and infrastructure, respond effectively to global automotive trends and regulatory requirements, and efficiently serve our global customers.
Solid recurring and diversified income base
We have a high-quality, predictable, recurring income stream based on (multi-year) contracts, high levels of customer satisfaction and low customer default rates. In addition, our profitability is supported by our diversified fleet management model, including car re-marketing, damage risk retention and lease services. This allows us to generate multiple revenue streams from our vehicle assets, creating a higher effective return on our asset base than the more traditional, short-term or the financial leasing business models, which are mainly dependent on net interest income from leased vehicles.
Advanced risk management
We operate a highly sophisticated risk management platform with a consistent measurement system applied across the group. This enables us to effectively manage credit and residual value risk — a fact which is underlined by the low and decreasing corporate and retail default rates on our lease contracts and by our strong termination results. In addition, we apply matched funding, through which we aim to match the maturity, interest and currency of the funding obligation used to finance a leased vehicle with the corresponding lease, in order to reduce the interest and currency risk.
Unique funding structure
Over the years, we have established a uniquely diversified funding model with funding streams across various investment grade bond programmes, securitisation programmes, bank lines and deposits, providing us with access to a diverse and flexible range of funding sources. In addition, as (retail) deposits are one of our key funding streams, we have a bank license and adhere to capital requirements set by the Dutch Central Bank. This provides us with an additional, independent ‘quality stamp’, which is favourable to our credit rating and secures a stable d low risk profile.