Ayvens reports FY 2023 results
FY 2023 RESULTS
Earning assets[1]up 14.2% vs. end December 2022, underpinned by the sharp increase in vehicle value Leasing contract and Services margins at EUR 2,616.1 million, up 38.0% vs. 2022 and stable on a like-for-like basis[2]. Consolidation of LeasePlan, impact of reduction in depreciation costs (EUR +514.6 million) and marked to market (MtM) of hedging derivatives (EUR -186 million) Used car sales (UCS) result per unit at EUR 2,400[3] in 2023 (vs. EUR 3,269 in 2022). ALD’s UCS result per unit at EUR 1,312 after the impact of reduction in depreciation costs[4], in line with guidance Cost to income ratio[5] at 63.7% vs. 53.2% in 2022 Net income (group share) at EUR 816.2 million, down 32.8% compared to exceptionally high 2022 base. Impact of normalization of used car market, MtM of derivatives, costs to achieve and LeasePlan Purchase Price Allocation Return on Tangible Equity (ROTE) at 12.4% in 2023 vs. 26.4% in 2022 Earnings per share[6] at EUR 1.07, vs. EUR 2.68 in 2022 Proposed dividend[7] of EUR 0.47 per share (payout ratio of 50%[8]) CET1 ratio at 12.5% as at end December 2023
Q4 2023 RESULTS
Leasing contract and Services margins at EUR 619.6 million, down 9.5% on a like for-like basis4. Negative impact of MtM of derivatives of LeasePlan (EUR -149.8 million) and pressure on margins UCS result per unit5 at EUR 1,706, reflecting the normalization of the used car market, the 2023 impact of LeasePlan Purchase price Allocation accounted for in Q4 2023 (EUR -192.8 million) and the industry destocking of terminated vehicles Cost to income ratio[11]at 69.1% vs. 58.5% in Q4 2022 Net income (group share) at EUR 28.7 million, impacted by MtM of derivatives, pressure on margins, normalization of the used car market, industry destocking of terminated cars and amortization of the positive impact of PPA vs. exceptionally high EUR 284.7 million in Q4 2022
LEASEPLAN INTEGRATION WELL ON TRACK
2023 key milestones reached
Synergies and Costs to achieve confirmed
On 8 February 2024, Tim Albertsen, CEO of Ayvens, commenting on the full year 2023 Group results, stated:
2023 was marked by the acquisition of LeasePlan and our teams’ commitment to become one and to lay the foundations for the successful creation of the leading global sustainability mobility player. In our PowerUP 2026 plan, we defined our strategy to shape the future of our industry and achieve excellence around our 4 priorities: clients, operational efficiency, responsibility and profitability. This plan is supported by state-of-the-art technology as well as our new global mobility brand ‘Ayvens’. A few months into the integration, I am grateful for the unwavering commitment of our employees who maintained the highest standards of customer service while efficiently implementing our integration plan, which progresses according to schedule.
In the context of normalizing used car markets, higher inflation and volatile interest rates, Ayvens posted mixed financial results for a transition year, compared to an exceedingly high 2022 base, but confirmed its strong capital position. In accordance with our strategic plan, our teams are tackling these challenges head on and have undertaken decisive steps to restore our margins, reduce the volatility of our revenues and protect the value of our assets. I am confident that we can achieve this, thanks to our unique competitive position and proven agility, and that we will be able to see the benefits by the end of this year.
[1] “Ayvens” refers to ALD and its consolidated entities
[2] The Group’s estimated unaudited consolidated results as at 31 December 2023 were examined by the Board of Directors, chaired by Pierre Palmieri, on 7 February 2024. The audit procedures carried out by the Statutory Auditors on the consolidated financial statements are in progress. The Group’s consolidated financial statements for the year ending 31 December 2023 are expected to be closed by the Board of Directors by end March 2024
[3] Net carrying amount of the rental fleet plus net receivables on finance leases
[4] Scope as at 31 December 2023, excluding non-recurring items (reduction in depreciation costs and non-operating items: fleet revaluation, hyperinflation in Turkey, marked-to-market of derivatives, provision in Ukraine) and impact of LeasePlan’s Purchase Price Allocation (PPA)
[5] Management information, on Ayvens’ sales, excluding impact of reduction in depreciation costs and PPA
[6] Without the impact of reduction in depreciation costs in prior quarters, ALD’s UCS result per unit would have been EUR 2,344 vs. EUR 3,269 in 2022
[7] Excluding UCS result, non-recurring items and impact of PPA
[8] Diluted Earnings per share, calculated on a weighted average number of shares, according to IAS 33. Basic EPS for 2023 at EUR 1.08. 2022 EPS was restated for IFRS 17, which applies from 1 January 2023
[9] Subject to the approval of General Meeting of Shareholders
[10] Based on Net income group share after deduction of interest on AT1 capital
[11] Excluding UCS result, non-recurring items and impact of PPA
