DJ ALD: new 5-year strategic plan 'MOVE 2025'
ALD
ALD: new 5-year strategic plan 'MOVE 2025'
12-Nov-2020 / 07:30 CET/CEST
Dissemination of a French Regulatory News, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
Press release
Paris, 12 November 2020
ALD presents its new 5-year strategic plan "MOVE 2025"
Today, ALD is holding a Capital Markets Day for financial analysts and
investors to present the company's new 5-year strategic plan "Move 2025".
Tim Albertsen, Chief Executive Officer, and members of the ALD Executive
Committee will provide a detailed overview of the company's ambitions and
the main strategic operational and financial objectives in the context of
its new strategic plan.
"Move 2025 is an ambitious plan which leverages the transformation that we
started 5 years ago to seize growth opportunities that we see in the medium
to long-term future. With this new strategic plan, ALD is positioning itself
at the heart of the evolving mobility world and is strengthening its
competitive edge to become a fully integrated sustainable mobility provider
and the global leader in its industry," confirms Tim Albertsen, Chief
Executive Officer of ALD.
Four strategic pillars
ALD's strategic development is based on four strategic pillars which aim to
strengthen the company's competitive edge:
· Move for Customers - Be recognised as the most innovative provider of
mobility products and services through digitalisation, customisation,
flexibility, excellent customer experience and a unique mobility brand.
· Move for Growth - Be the global leader in sustainable mobility solutions
by extending geographical coverage and customer reach with new partners in
the mobility ecosystem, value-accretive acquisitions and new mobility
solutions.
· Move for Good - Place people and corporate social responsibility at the
heart of the business model.
· Move for Performance - Generate value over the economic cycle within a
robust business operating framework to grow the company in a cost
efficient manner.
Move 2025's ambitions translate into four key deliverables to drive
sustainable growth
Full Service Leasing & Fleet Management
ALD is a resilient business with significant growth potential in each of its
four client segments: multinationals and large corporates, SMEs, corporate
employees and private consumers.
The number of 'Total Contracts[1]' managed by ALD is expected to reach c.
2.3 million by 2025, including growth through bolt-on acquisitions. Both
direct and indirect channels are expected to contribute significantly to
this growth, with a slightly faster rate of increase for the latter, notably
thanks to ALD's leading private lease digital platform.
ALD is the N°1 provider in Europe with the widest direct coverage globally
and plans to expand its geographical presence further, including in Asia,
targeting up to 50 countries, accompanying its large corporate clients.
Main other organic growth drivers will be private lease and new mobility
products[2], which are expected to increase at a c. 15% CAGR over 2019-2025,
especially in ALD Flex (units[3] doubling to c. 60,000 by 2025) and Used Car
Lease (reaching c. 125,000 units by 2025).
The future is multi-cycle and multi-channel
Move 2025 will transform ALD's business model to one where vehicles are
leased for longer, in some cases for the entire lifespan of the vehicles, by
building on an opportunistic selection process and market-driven pricing
strategy for multi-cycle leasing, used car sales and multi-channel
distribution.
ALD expects c. 30% of its used vehicles to be sold or leased to retail
customers by 2025 with Used Car Lease reaching a total of c. 125,000
vehicles. This evolution will bring strong growth and margin opportunities
while simultaneously reducing residual value risk.
ALD Carmarket for consumers, based on a Clicks 'n Bricks approach, will be
implemented in 25 countries to support these ambitions, leveraging on ALD's
state of the art digital platforms and network of physical showrooms.
Driving investment in digital capabilities
An incremental budget of EUR 66m will be allocated to digital investments
over the next 5 years across all four strategic pillars, raising the share
of investment in digital capabilities from c. 20% of operating expenses in
2017-2019 to c. 23% in 2020-2025.
The electric mobility opportunity for ALD
As the first mover in the powertrain transition, ALD will continue to lead
the market in the shift to low emission vehicles by accompanying clients
through a TCO[4]-based approach, an all-inclusive EV4 offering, targeted EV
partnerships and a global EV Programme.
The share of Electric Vehicles[5] in new car deliveries is expected to rise
to c. 30% by 2025. By 2030, ALD is targeting c. 50% of deliveries to be
Battery Electric Vehicles.
As a result, average CO2 emissions per vehicle[6] for new contracts in 2025
are expected to be at least 40% below those of 2019.
Move 2025 strategic operational and financial objectives
· The number of 'Total Contracts'[7] is expected to reach c. 2.3 million
by 2025, including bolt-on acquisitions
· Within Total Contracts, the share of Funded Fleet[8] is expected to
reach 80-85% by 2025
· Leasing Contract & Services Margins, together, will increase at least in
line with Total Contracts over the period 2019-2025, thanks to increased
services penetration and scale benefits
· The Cost/Income (excl. Used Car Sales result) ratio will improve to
between 46% and 48% by 2025, while absorbing EUR 66m of additional digital
investments during 2020-2025
· The dividend pay-out ratio will be raised to between 50% and 60% for
2020-2025, maintaining the Total Equity to Total Assets ratio in line with
its historical range thanks to strong capital generation
Sustainability and extra-financial objectives for 2025
ALD has adopted a 4-dimensional sustainability approach to support its
corporate social responsibility strategy and ensure that its business
activities have a positive impact on society.
· Shaping the future of sustainable mobility:
· a low emission fleet: - 40% on CO2 emissions5 vs 2019
· Being a committed and responsible employer:
· reaching an 80% employee engagement rate
· raising the share of women in management bodies to 35%[9]
· Implementing responsible business culture & practices
· ESG criteria embedded in 100% of policies, processes, controls with
external stakeholders
· Raising client NPS[10] >40%
· Reducing the company's internal environmental footprint by 30% vs. 2019
About ALD's Capital Markets Day
ALD's Capital Markets Day is available online in English today from 7:30am
(CET) via a pre-recorded webcast at www.aldautomotive.com [1] and will be
followed by a live Q&A session at 2pm (CET). A full copy of the presentation
can be accessed via the Investors Relations section of the ALD corporate
website.
Investor Relations Contact
Clémence Mignot-Dupeyrot
Investor Relations Department
Tel.: +33 (0) 6 03 04 63 60
clemence.mignot-dupeyrot@aldautomotive.com
Press contact
Stephanie Jonville
Communications Department
Tel.: +33 (0)6 46 14 81 90
stephanie.jonville@aldautomotive.com
About
ALD
ALD is a global leader in mobility solutions providing full service leasing
and fleet management services across 43 countries to a client base of large
corporates, SMEs, professionals and private individuals. A leader in its
industry, ALD places sustainable mobility at the heart of its strategy,
delivering innovative mobility solutions and technology-enabled services to
its clients, helping them focus on their everyday business.
With 6 700 employees around the globe, ALD manages 1.76 million vehicles (at
end-September 2020).
ALD is listed on Compartment A of Euronext Paris (ISIN: FR0013258662;
Ticker: ALD) and is included in the SBF120 index. Société Générale is ALD's
majority shareholder.
This document contains forward-looking statements relating to the targets
and strategies of ALD SA (the "Company") and its subsidiaries (together with
the Company, the "Group"). These forward-looking statements are based on a
series of assumptions, both general and specific, in particular the
application of accounting principles and methods in accordance with IFRS
(International Financial Reporting Standards) as adopted in the European
Union. These forward-looking statements have also been developed from
scenarios based on a number of economic assumptions in the context of a
given competitive and regulatory environment. The Group may be unable to: -
anticipate all the risks, uncertainties or other factors likely to affect
its business and to appraise their potential consequences; - evaluate the
extent to which the occurrence of a risk or a combination of risks could
cause actual results to differ materially from those provided in this
document and the related presentation. Therefore, although the Company
believes that these statements are based on reasonable assumptions, these
forward-looking statements are subject to numerous risks and uncertainties,
including matters not yet known to it or its management or not currently
considered material, and there can be no assurance that anticipated events
will occur or that the objectives set out will actually be achieved.
Important factors that could cause actual results to differ materially from
the results anticipated in the forward-looking statements include, among
others, overall trends in general economic activity and in the Group's
markets in particular, regulatory changes, and the success of the Company's
strategic, operating and financial initiatives. More detailed information on
the potential risks that could affect the Company's financial results can be
found in the Universal Registration Document and in the Last Financial
Report filed with the French Autorité des Marchés Financiers. Investors are
advised to take into account factors of uncertainty and risk likely to
impact the operations of the Group when considering the information
contained in such forward-looking statements. Other than as required by
applicable law, the Company does not undertake any obligation to update or
revise any forward-looking information or statements. Unless otherwise
specified, the sources for the business rankings and market positions are
internal. Figures in this presentation are unaudited.
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[1] Total Contracts = Total Fleet (Full Service Lease & Fleet Management)
plus new mobility solution contracts (ALD Flex, Used Car Lease and ALD Move)
[2] ALD Flex, Used Car Lease and ALD Move - also called new mobility
products
[3] ALD Flex and Pool fleet
[4] TCO = total cost of ownership
[5] Electric Vehicles (EV) defined as Battery Electric Vehicles (BEV),
Plug-in Hybrid Electric Vehicles (PHEV) and + Hydrogen Fuel Cell Vehicles.
Targets set on new passenger car deliveries for EU + Norway + UK +
Switzerland
[6] Average emissions on passenger cars for EU + Norway + UK + Switzerland
(CO2 in g/km (NEDC norm))
[7] Total Contracts = Total Fleet (Full Service Lease & Fleet Management)
plus new mobility solution contracts (ALD Flex, Used Car Lease and ALD Move)
[8] Funded Fleet includes Full Service Lease and leases classified as
Finance Lease
[9] Executive Committee and Management Committee of ALD SA (holding) +
Operating Board + Chief Executive Officers and local Management Committees
of Group entities internationally
[10] Net Promoter Score. Measure of client satisfaction (on fleet managers
and drivers) defined as difference between % of promoters and detractors.
Measure is updated annually. 2019 NPS was at 36% (next results to be
published in November 2020)
Regulatory filing PDF file
File: Move 2025 [2]
Language: English
Company: ALD
1 Rue Eugène et Armand Peugeot
92500 Rueil-Malmaison
France
Internet: https://www.aldautomotive.com/
ISIN: FR0013258662
Euronext Ticker: ALD
AMF Category: Inside information / Other releases
EQS News ID: 1147101
End of Announcement EQS News Service
1147101 12-Nov-2020 CET/CEST
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(END) Dow Jones Newswires
November 12, 2020 01:30 ET (06:30 GMT)
