AUTOMOTIVE FINANCE MARKET IN SLOVENIA CHALLENGES & OPPORTUNITIES. 15 April 2011

Transcription

1 AUTOMOTIVE FINANCE MARKET IN SLOVENIA CHALLENGES & OPPORTUNITIES 15 April 2011

2 AGENDA SLO PASSENGER CAR MARKET SLO VEHICLES FINANCING MARKET MARKET PLAYERS BUSINESS CLIMATE LENDING RATES KEY HIGHLIGHTS HOW TO BE SUCCESFULL

3 SLO PASSENGER CAR MARKET SMALL & MATURE

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5 TOP TEN BRANDS APP. 75% OF THE MARKET Slovenia Top 10 brands 18,0% 15,0% 12,0% 9,0% 6,0% 3,0% 19,5% Renault 17,5% 17,9% 17,4% 16,5% 13,9% VW 12,1% 11,2% 10,9% 10,4% 9,0% 8,6% 8,5% 8,5% Peugeot 7,9% 8,0% 7,5% Citroen7,6% 7,5% 6,4% 6,8% Opel 6,9% 6,3% 6,0% Fiat Ford 5,6% 5,5% 5,7% 5,4% 5,6% Hyundai 5,3% 4,6% 4,0% Skoda 4,9% 4,0% 3,8% 3,8% 3,6% Kia 3,4% 3,3% '07 '08 '09 '10 '11 TOP 5 IN EU NO. OF CARS PER INHABITANT: IT 606 CYP 579 MLT 568 AUT 522 SLO 521 GER 509 EU 473

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7 VEHICLES FINANCING MARKET IN SLOVENIA HIGHLY TRANSPARENT & COMPETITIVE

8 SLO LEASING MARKET EUR NEW BUSINESS/ PURCHASE PRICE OF FINANCED PRODUCTS OUTSTANDING 2,2 BILL EUR

9 STRUCTURE OF LEASING MARKET BY FINANCED PRODUCTS - MOBILES DEALERS STOCK FINANCING 27% = 231 MIO EUR 45,9% 16,3%

10 FINANCED AMOUNT/NEW PASSENGER CAR MARKET Summit Leasing Slovenija d.o.o. Flajšmanova 3 Ljubljana Apr-11

11 PURCHASE PRICE / FINANCED AMOUNT BY TYPE OF VEHICLES 2010 MIO EUR END CUSTOMERS 21% downp. 26% downp.

12 TYPE OF FINANCING BY TYPE OF VEHICLES 2010 FINANCED AMOUNT MIO EUR END CUSTOMERS LOANS 14% FIN.LEASE 53% OPERATIVE LEASE 32% ALL INCL. OP.L. 0,6%

13 OUTSTANDINGS IN VEHICLES FINANCING BY TYPE OF FINANCING 0,2% 74,2% 167,6 STOCK FINANCE

14 MARKET PLAYERS TOP 5 82% MARKET SHARE 2010

15 MARKET SHARES - NEW PASSENGER CARS Q Summit Leasing Slovenija Flajšmanova 3 Ljubljana 4/18/

16 MARKET SHARES - USED PASSENGER CARS Q Summit Leasing Slovenija Flajšmanova 3 Ljubljana 4/18/

17 MARKET SHARES NEW & USED PASSENGER CARS Q Summit Leasing Slovenija Flajšmanova 3 Ljubljana 4/18/

18 MARKET SHARES DEALERS STOCK FINANCING

19 ENVIRONMENT & BUSINESS CLIMATE - RECOVERY & UNCERTAINTY

20 SENTIMENT INDICATOR Statistical Office of R.S. Summit Leasing Slovenija Flajšmanova 3 Ljubljana 20 4/18/2011

21 CONFIDENCE INDICATOR IN RETAIL TRADE Statistical Office of R.S. Summit Leasing Slovenija Flajšmanova 3 Ljubljana 21 4/18/2011

22 INDEXES OF TURNOVER Y/Y Statistical Office of R.S. Summit Leasing Slovenija Flajšmanova 3 Ljubljana 22 4/18/2011

23 INDECES OF TURNOVER M/M- Statistical Office of R.S. Summit Leasing Slovenija Flajšmanova 3 Ljubljana 23 4/18/2011

24 LENDING RATE POSITIONING LOWER RATES THAN IN EU

25 LENDING RATES TO CORPORATES up to 1 mio EUR Bank of Slovenia NOMINAL INTERST R. TO COMPANIES DIFFERENCE SLO EURO ZONE Summit Leasing Slovenija Flajšmanova 3 Ljubljana 25 4/18/2011

26 LENDING RATES FOR CONSUMER LOANS Bank of Slovenia DIFFERENCE SLO EURO ZONE NOMINAL INTEREST R. TO INDIVIDUALS Summit Leasing Slovenija Flajšmanova 3 Ljubljana 26 4/18/2011

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29 SOME HIGHLIGHTS TO BE CONSIDERED

30 GENERAL ECONOMY OF SCALE IN SMALL ECONOMY?! LOWER GDP GROWTH SLO / EU 2010 SLO GDP GROWTH EXPORT DRIVEN < IMPORT GROWTH GER & FR INCREASED UNEMPLOYMENT UNEMPLOYED OUT OF ACTIVE P. SLO BANKS LIABILITY POSITION DEPEND RELATIVELY MORE ON EURO INTERBANK FUNDING LACK OF LONG TERM FUNDING Q CUMMULATIVE LOSS IN PAT OF SLO BANKS PENSION & SOCIAL CARE & HEALTH REFORM? - SLO CREDIT RATING IMPACT? DIFFERENT FUNDING POSITION OF LEASING COMPANIES / FOREIGN-DOMESTIC OWNERSHIP

31 LEGISLATIVE FRAME INTERNATIONAL ACCOUNTING STANDARDS APPLIED VAT ON INTERESTS IN CASE OF FINANCIAL LEASE ABANDONED VAT ON PASSENGER CARS IS NOT DEDUCTABLE ONLY FEW EXEMPTIONS AMENDED VAT LAW BRINGS UNCERTANITY TO LEASING COMPANIES IN CASE OF EARLY TERMINATION OF FINANCIAL LEASE CONTRACTS WITH DEDUCTABLE VAT (COMMERCIAL VEHICLES) TO COVER UNPAID VAT BY LESSEE? MONEY LAUNDRING LAW SAME STATUS AS BANKS? o o ADDITIONAL WORKLOAD RISK OF FINES : EUR CONSUMER FINANCING LAW o o o ADVERTISING LICENCES EVERY 3 YEARS NEW APPLICATION EARLY WITHDRAWAL RIGHT - 3 DAYS IN CASE OF LEASING

32 SALES & MARKETING LEASING PENETRATION 2010 o New cars 47,4% o New light comm. v. 37,8%? BANKS PENETRATION 20%? MORE THAN 70% OF CUSTOMERS INDIVIDUALS CAPTIVE & VENDOR DRIVEN MARKET & HIGH CONCENTRATION TOP 5 81% 2010, % IN REAL TERMS LOWER NEW PASSENGER CAR MARKET POTENTIAL DAILY REGISTRATIONS FOR EXPORT 15% IN 2010, 13% IN 2011 TRENDS IN Q1 2011? o PENETRATION 46,7 % o NEW P. CARS + 30% o USED P. CARS +17% o LCV +51%

33 SALES & MARKETING DIFFERENT PRICE ELASTICITY BY BRANDS FINANCED IN PRINCIPLE MORE PROBLEM OF PERCEPTION OF PARTICULAR DEALERS HIGH ELASTICITY IN PURCHING OF CARS AGRESIVE BANKS APPROACH SHIFT FROM CORPORATES TO INDIVIDUALS LOW SHARE OF OPERATIVE LEASE? o o o NOT MANY FLEET CUSTOMERS SMALL SECONDARY MARKET & RELATED RV RISKS ON THE SIDE OF LESSORS ACCOUNTING & TAXATION LEGISLATION MORE DISADVANTAGES THEN ADVANTAGES ESP. FOR COMPANY CARS/ PRIVATE USE

34 FINANCIAL INTEREST MARGINS INCREASED AFTER CRISIS, STABILISED IN 2010 BUT STARTING TO FALL RISK ACCEPTANCE GENERALLY DECREASED LOWER ACCEPTANCE RATIO FEES & COMMISIONS TO DEALERS FROM 1% - 2% & LOWER GENERAL PROFITABILITY OF DEALERS DELINQUINCY GENERALLY INCREASED CUMMULATIVE PAT OF SLO LEASING COMPANIES 2009 = - 26,6 MIO EU - 2,3% TOTAL OUTSTANDING ASSETS APP. 5 BILLION EUR INCREASED PROVISIONS TARGETED /ACHEIVED R/A: 1% +/- LACK OF CENTRAL PROFFESIONAL / PUBLIC AGENCY FOR CREDIT RATING OF INDIVIDUALS SISBON? SPECIFIC RISKS o o RETAIL DELIVERY RISK REGISTRATION - HOMOLOGATION CERTIFICATE RELATED RISK

35 KEY TO SUCCESS? DISTRIBUTION

36 MARKET POTENTIAL BY CAPTIVES & VENDORS FIAT MERCEDES HONDA MITSUBISHI ALFA ROMEO SMART FERRARI MASSERATI LANCIA FORD HYUNDAI KIA MAZDA TOYOTA SUZUKI LAND ROVER JAGUAR VOLVO OPEL CHEVROLET CITROEN PEUGEOT RENAULT NISSAN BMW DACIA MINI VW SKODA SEAT AUDI PORSCHE

37 MARKET POTENTIAL BY CAPTIVES & VENDORS / MARKET SHARES 2010 NEW PASS. CARS END CUSTOMERS BY % OF REGISTERED CARS OF PARTNERS - IMPORTERS BY MARKET SHARES -%

38 WHAT PARTNERS IMPORTERS, DISTRIBUTORS & DEALERS EXPECT FROM VENDOR / CAPTIVE PARTNER TO FACILITATE AND PROMOTE SALES OF NEW AND USED CARS WITH FAST, SIMPLE AND FLEXIBLE FINANCING SOLUTIONS TO END CUSTOMERS BASED ON ONE STOP SHOP PRINCIPLE TO PROVIDE SIMPLE, TRANSPARENT AND COSTS ATTRACTIVE SOLUTIONS FOR WHOLESALE FINANCING TO INCREASE THE LOYALITY OF CUSTOMERS WITH PROVIDING THEM ADDITIONAL VALUE THROUGH THE PACKAGE OF DIFFERENT SERVICES TO INCREASE PROFITABILITY OF DEALERS WITH STIMULATIVE COMMISSIONING SCHEMES

39 MAGIC CIRCLE CONTRACTS ARE JUST PAPER, MONEY IS THE BLOOD, RELATIONSHIP & TRUST KEEP EVERYTHING TOGETHER MOST COMPLETE RANGE OF SERVICES IN PASSENGER CAR FINANCING ONE STOP SHOP E. BUSINESS ADDITIONAL VALUE CUSTOMER & CUSTOMER COMPETITIVE DOES NOT MEAN THE CHEAPEST PARTNERSHIPS= LONG TERM STABILITY PROMOTION = COMMUNICATION WITH ALL STAKEHOLDERS ONLY PEOPLE MAKE THE SERVICE COMPETITIVE

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