Leasing in Europe State of Play and Outlook. Bucharest, Romania 19 November

Transcription

1 Leasing in Europe State of Play and Outlook Bucharest, Romania 19 November

2 Agenda o About Leaseurope o Leasing in Europe o Leased Assets & Customers o State of the Industry o Industry Performance o Business Development

3 About Leaseurope Leaseurope represents the European leasing & automotive rental industry 45 member associations in 33 countries* About leasing firms & 500 short term rental companies At least employees Representing around 91% of the European leasing market Including bank-owned lessors, captives, automotive lessors, short term rental companies, independent lessors, real estate lessors etc. *The countries represented are: Austria, Belgium, Bulgaria, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Italy, Ireland, Latvia, Lithuania, Luxembourg, Malta, Morocco, the Netherlands, Norway, Poland, Portugal, Romania, Russia, Serbia & Montenegro, Slovakia, Slovenia, Spain, Sweden, Switzerland, Tunisia, Turkey, Ukraine and the UK Leaseurope

4 Leasing in Europe (& a little bit outside)

5 Evolution of the European Leasing Market European leasing market - new volume growth (% YoY) Total outstandings: (2013 vs ) 1.7% 9.9% 9.5% 9.5% Total volumes Real Estate Equipment incl vehicles bil 15.4 bil bil New Volumes Growth rates are calculated based on a homogenous sample of members reporting from year to year & are adjusted for exchange rate fluctuations 2007 onwards Source: Leaseurope Annual Surveys

6 Annual growth of new leasing volumes per country 2013/ % European Leasing Market in 2013 Over 10% 5 to 10% Members not reporting & non - members 0 to 5% -5 to 0% -10 to -5% Under - 10% Leaseurope s 2013 Annual Survey Growth rates are adjusted for exchange rate fluctuations

7 Annual growth of new leasing volumes per country / % European Leasing Market in Over 20% 10 to 20% 5 to 10% Members not reporting & non - members 0 to 5% -5 to 0% Under - 5% Leaseurope s Annual Survey Growth rates are adjusted for exchange rate fluctuations

8 European Leasing Market in H Biannual growth of new leasing volumes per country H1 2015/ 9.1% Over 20% 10 to 20% Members not reporting & non - members 0 to 9% -9% to 0-10 to -20% Under -20% Source: Leaseurope Member Associations 29 Member Associations reporting; growth rates adjusted for exchange rate fluctuations

9 Leased Assets & Customers

10 European Leasing Market in Leased assets Share of Total new lease volumes per asset category, % 2013 Machines & equip 10% 8% 18% 18% Real estate 6% 6% CVs 16% Cars 16% 6% 44% ICT Big/other 5% 47% Source: Annual Survey 65% Automotive

11 European Leasing Market in New lease volumes per asset type % period on period (/2013) 20% 15% 10% Total 20% 15% 10% Real estate Movables 9.5% 9.9% 9.5% Machinery ICT CVs Cars Big Other 25% 20% 15% 10% 14.6% 10.9% 10.6% 5% 0% -5% 5% 0% -5% 5% 0% -5% 0.9% -0.2% -10% -10% -10% -15% -15% -15% -20% -21.9% Growth rates are calculated based on a homogenous sample of members reporting from year to year & are adjusted for exchange rate fluctuations Source: Annual Survey based on 33 members reporting

12 Normalised PR 1999 =100 European Leasing Penetration Evolution of leasing penetration in Europe 19 countries (1999-) Total Equipment Real estate Lease penetration is the share of total investment (excluding residential real estate) financed by leasing calculated as new leasing volumes / gross fixed capital formation for the 19 associations reporting from Source: Leaseurope, Eurostat and AMECO (GFCF)

13 Leasing s role in supporting investment Share of equipment investment financed by leasing () > 30% 25% to 30% 20% to 25% 15% to 20% Equipment penetration 24% 10% to 15% < 10 % NA Lease penetration is the share of total investment financed by leasing calculated as new leasing volumes (excluding consumers)/ gross fixed capital formation in equipment Based on data from Leaseurope s Annual Survey Leaseurope

14 European Leasing Market in Leasing clients New movables leasing volumes by client sector () Public sector 3% Other 2% Consumers 23% % movable leasing volumes Businesses 72% Source: Annual Survey

15 Leasing to European SMEs Leasing is the most important external finance contributor to SME investment spending Percent of SME investment by finance type in SMEs financed 18.9% of their total Investment finance in 2013-, all SMES investment via leasing in 2013, more Proportion of investment financed by: Leasing Cash/Equity Short-term credit Loan 1-3 yrs than any individual form of bank Loan >3 yrs Other debt lending, and is estimated to further 100% grow to 21.2% in. 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Source : Oxford Economics/EFG 17.8% 18.6% 15.5% 15.0% 10.0% 9.4% 7.3% 6.7% 30.5% 29.1% 18.9% 21.2% 2013 At EU level this means that leasing was responsible for financing just over 9 million individual SMEs and ~ 104 billion of SME investment in fixed assets in 2013 ( 121 billion is estimated in ). SMEs use leasing to finance a greater proportion of their investment than larger businesses (11.7%). Source: "The Use of Leasing Amongst European SMEs", 2015

16 State of the Industry

17 Characteristics of European Market Players Ranking survey results Value of total new contracts within Europe in ( thousands) Name Country EU Countries Value Value Société Générale Leasing Solutions (incl. ALD) * France 29 13,961,140 11,966,354 2 BNP Paribas Leasing Solutions (incl. Arval) * France 19 13,402,300 11,920,580 3 Volkswagen Leasing GmbH Germany 3 12,205,747-4 De Lage Landen International B.V. * Netherlands 21 10,036,511 9,735,033 5 Deutsche Leasing * Germany 19 7,436,400 7,386,827 6 UniCredit Leasing Italy 17 6,857,850 6,725,231 7 Nordea Finance Sweden 7 5,109,309 4,916,568 8 Alphabet International * Germany 13 4,780,000 4,190,000 9 LeasePlan Corporation N.V. * Netherlands 24 4,775,378 4,460, Crédit Agricole Leasing & Factoring * France 4 4,421,734 4,002,907 *These companies also have operations outside Europe

18 Characteristics of European Market Players Ranking survey results Value of total new contracts within Europe in ( thousands) Name Country EU Countries Value Value CM-CIC BAIL France 7 3,577,095 3,540, DNB Finans Norway 3 3,076,198 2,949, LBBW Leasing * Germany 3 2,934, RCI Banque * France 36 2,901,783 2,843, ING Lease Netherlands 5 2,547,906 2,259, NATIXIS LEASE France 3 2,487, Siemens Financial Services GmbH * Germany 11 2,285,137 2,318, Raiffeisen Leasing * Austria 19 2,210,641 1,979, OJSC VEB Leasing * Russia 9 2,087,821 4,154, OJSC VTB Leasing Russia 4 1,777,099 1,342,517 *These companies also have operations outside Europe

19 Characteristics of European Market Players Market concentration: % of total new volumes reported in Ranking Survey Likelihood of new entrants growing Trends: M&A activity increasingly expected All firms in Ranking All new volumes reported 141 bil TOP 20 TOP % 20% 40% 60% 80% 100% % of total new volumes reported in Ranking TOP 10 TOP 20 % of all new volumes reported 59% % of all new volumes reported 77% Source: Leaseurope Ranking Survey of Top European Leasing Companies, BCS June 2015

20 New business volumes bill New business volumes bill Characteristics of European Market Players Distribution channels used by partaking firms in Ranking Survey All firms TOP 20 firms From 32% to 31% of new volumes From 5% to 6% of new volumes New volumes granted by all firms (LHS) Source: Leaseurope Ranking Survey of Top European Leasing Firms Number of firms using channel (RHS) New Volumes granted by TOP 20 (LHS) 2013

21 Industry Performance

22 The Leaseurope Index median ratios (2013-Q2 2015) Leaseurope Index Profitability ratio Cost / income ratio Cost of risk ratio Source: Leaseurope Index

23 The Leaseurope Index median ratios (2013-Q2 2015) Leaseurope Index RoA RoE Source: Leaseurope Index

24 Leaseurope Index Leaseurope Index: Segment Survey An annual supplement to the quarterly Index Financial ratios: profitability, cost/income, cost of risk and return on assets Broken down by four asset types: equipment, real estate, passenger cars and commercial vehicles The survey is the fourth edition of the project

25 Leaseurope Index Profitability per asset segment, medians (2010-) 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 26.1% 35.7% 34.0% 32.5% 31.1% 39.6% 30.2% 5.3% 12.3% 24.8% 27.5% 34.8% 32.1% 29.1% 39.4% 31.3% 35.6% 34.9% 31.9% 29.1% Equipment Real estate Passenger cars & LCVs Commercial vehicles 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Equipment Real estate Passenger cars & LCVs Commercial vehicles Q4

26 Leaseurope Index Cost/income per asset segment, medians (2010-) 60% 50% 40% 39.2% 41.5% 43.2% 43.0% 35.7% 34.8% 39.2% 50.9% 49.2% 44.7% 45.3% 41.4% 41.6% 42.7% 45.3% 41.9% 36.4% 49.0% 47.7% 44.0% 30% 20% 10% 0% Equipment Real estate Passenger cars & LCVs Commercial vehicles 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Equipment Real estate Passenger cars & LCVs Commercial vehicles Q4

27 Leaseurope Index Cost of risk per asset segment, medians (2010-) 1.2% 1.0% 1.0% 1.1% 0.8% 0.6% 0.4% 0.8% 0.8% 0.7% 0.5% 0.4% 0.3% 0.7% 0.7% 0.6% 0.4% 0.3% 0.5% 0.3% 0.6% 0.4% 0.4% 0.6% 0.3% 0.2% 0.0% Equipment Real estate Passenger cars & LCVs Commercial vehicles 0.7% 0.6% 0.5% 0.4% 0.3% 0.2% 0.1% 0.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Equipment Real estate Passenger cars & LCVs Commercial vehicles Q2 Q3 Q4 Q1 Q2 Q3 Q4

28 Leaseurope Index RoA per asset segment, medians (2010-) 2.0% 1.8% 1.6% 1.4% 1.2% 1.0% 0.8% 0.6% 0.4% 0.2% 0.0% 1.9% 1.1% 1.1% 1.2% 1.3% 1.3% 1.3% 1.1% 1.0% 1.0% 0.9% 1.0% 0.7% 0.8% 0.7% 0.6% 0.3% 0.3% 0.2% 0.1% Equipment Real estate Passenger cars & LCVs Commercial vehicles 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Equipment Real estate Passenger cars & LCVs Commercial vehicles Q2 Q3 Q4 Q1 Q2 Q3 Q4

29 Business Development

30 Business Confidence Survey Balance of expectations for business over next six months New Business Volumes Margins Bad Debt Net Profit Balance between respondents expressing positive and negative opinions of the outlook over the next six months Source: Leaseurope/Invigors Business Confidence Survey June 2015

31 Main Trends in the European Leasing Market The European market is one of the largest leasing markets in the world. Leasing plays a central role at the heart of the real economy. Future trends Develop services and solutions (mobility ) Finance new markets (cloud, third platform, new energy ) Foster innovation (big data ) Asset focus and specialisation (new energy ) Support customers and vendors globally Looking ahead, the European leasing industry must be a at the forefront of innovative financing solutions in order to take advantage of the shift from ownership to usage

32 Leasing in Europe State of Play and Outlook Bucharest, Romania 19 November