Enhanced Mobility Through Leasing SEPTEMBER 2018

Transcription

1 Enhanced Mobility Through Leasing SEPTEMBER 2018

2 AGENDA 01 How a Leasing Company understands MOBILITY? 02 How to provide best mobility solution in China? 03 Future of Full Service Leasing 04/09/2018 P.2

3 HOW A LEASING COMPANY UNDERSTANDS MOBILITY? RESPONSIBILITY From TCO to TCM identify the right vehicle for the right usage and enable our clients to make informed decisions, with a vision and determination to continuously reduce the environmental impact of their fleet FLEXIBILITY Car sharing / Car Hailing Ride sharing / Pooling Operational Leasing / Second lease Flexible product Short and medium term renting INNOVATION use NEW services to solve core business challenges, increase efficiencies, and improve mobility 04/09/2018 P.3

4 HOW TO PROVIDE BEST MOBILITY SOLUTION IN CHINA? THINK ABOUT END USERS How to keep your employees and decrease retention rate? ALLOWANCE / DRIVERS? How to make sure your employees are using it right? What about safety? SAFETY How to make sure your drivers / end users are safe on the road? CITY RESTRICTIONS How to make sure you can get from point A to point B? THINK: FUTURE How to foresee the future not put down the fire? 04/09/2018 P.4

5 FUTURE OF FULL SERVICE LEASING What FSL is? Benefits of FSL What s next? 04/09/2018 P.5

6 FULL SERVICE LEASING OR OUTRIGHT PURCHASE? Do the right analysis to make the right choice Identify and understand all the costs involved as well as the processes FULL SERVICE LEASING Vehicles chosen by the company Purchased by the Leasing Company (owner) Rented for a fixed duration and mileage Sold by the Leasing Company in the end of the contract WHAT? OUTRIGHT PURCHASE Vehicles purchased and owned by the company Financed on equity capital or on credit. Resold by the company to its employees, to garages and less often to wholesalers or via auction sales % Analysis strongly countrydependent Taxes and regulatory rules + Interest rate + Other specificities and local constraints (including operational) Alleviates balance sheet (until IFRS16 enforcement) Increases operational expenses Frees up capital Avoids risks, without loss but also without wins High predictability, stable payment flows Releases the internal structure, management facilitated Immobilized assets & capital availability Depreciation risk Brutal changes risks, expenditures predictability Administration structure Increases assets, requires capital Risks exposure, but possibility to generate revenues Exposure to market changes, low predictability Requires qualified dedicated headcounts, highly demanding More controls Drivers support Driver more free What are the internal cost of funds, market interest rates, fund allocation? Understand costs of internal resources involved Simplified Suppliers management Complex Highly simplified Vehicle remarketing Highly complex: time consuming and requires space Restrictions Flexibility Full autonomy 04/09/2018 P.6

7 CASH ALLOWANCE OR FULL SERVICE LEASING? DRIVER PERSPECTIVE BENEFITS CONSTRAINTS Choice of the model of the car is not limited (no fleet policy imposed by employer) Possibility to use cash for any other purpose than a vehicle FREEDOM OF CHOICE TOTAL COSTS QUALITY TAXATION Vehicle related costs higher than allowance coverage (no benefit from scale economies taken into account in allowance calculation) Quality of service and costs for maintenance etc. are not monitored. Subject to normal income tax likely to be higher than BIK. INSURANCE ADMINISTRATION Annual mileage, age, driving record, home location influence the cost Responsible for car acquisition and sale + all the car issues management 04/09/2018 P.7

8 CASH ALLOWANCE OR FULL SERVICE LEASING? EMPLOYER PERSPECTIVE BENEFITS CONSTRAINTS No supplier administration No asset administration (acquisition, sale, maintenance, insurance etc.) TAXATION DUTY OF CARE RISK OF IMAGE NOT FLEXIBLE Depending on the country, taxation on a pay enhancement is higher than on a benefit (eg: France) More administrative burden to control and be compliant: ensure Employee holds a valid driving license is insured for business use is regularly serviced The employee is carrying out basic maintenance checks Choice of vehicle reflects image of company You can play on your cost with company car not with cash allowance (you cannot tell the employee you will reduce its cash allowance but you can play on your car policy) 04/09/2018 P.8

9 FULL SERVICE LEASING SOLUTION $ Vehicle purchase price Contract terms Depreciation to be financed Fixed duration (e.g.. 36 months) Fixed mileage (eg kms) + Subscribed services for the vehicle, for the driver and for the fleet manager $ Vehicle resale price DEPRECIATION FUNDING + ADDITIONAL SERVICES = MONTHLY RENTAL CUSTOMER BENEFITS Focus on core business: productivity gains with employees dedicated to the core business. Optimal use of capital: no initial cost to the customer vehicles purchased by ALD. Cost reduction and predictability: technical analysis of budgets, bargaining power with suppliers and maintenance costs are turned into fixed cost in monthly rent. No financial risk: ALD is responsible for vehicle depreciation. ALD expertise: better negotiations, robust systems, centralized billing, comfort, convenience, best practices. 04/09/2018 P.9

10 FLEET MANAGEMENT SOLUTION $ X Contract terms Depreciation is not financed Fixed duration (eg. 36 months) Fixed mileage (eg kms) $ Y Customer is the owner of the vehicles No depreciation to be financed Customized pack of services for the vehicle, for the driver and for the fleet manager MANAGEMENT FEE + REAL COST RE-INVOICED = MONTHLY INVOICE CUSTOMER BENEFITS Focus on core business: productivity gains with employees dedicated to the core business. Cost reduction: technical analysis of budgets, bargaining power with suppliers and maintenance costs are turned into fixed cost in monthly rent. ALD expertise: better negotiations, robust systems, centralized billing, comfort, convenience, best practices. Immediate implementation: no vehicle purchasing immediate availability of services 04/09/2018 P.10

11 MEGA TRENDS RESHAPING THE MOBILITY SECTOR Today s mega trends Digital lifestyle New customer behavior The rise of alternative powertrains Alternative powertrains Technological progress The shift to mobility as a service Mobility services & platforms Enhanced interconnectedness Demography & city legislation Environmental constraints Traditional Car Usage Economics & Sociology The move from ownership to usage Private Lease The surge of connected cars Connected Car ecosystem Autonomous vehicles 04/09/2018 P.11

12 ALD, A TRUE MOBILITY PROVIDER 04/09/2018 P.12

13 ALD INNOVATES DEVELOPPING NEW CAPABILITIES TO PREPARE THE FUTURE The rise of alternative powertrains Alternative powertrains DIGITAL & CONNECTED CAR Digital Platforms myald Connected Car/Telematics Profleet The shift to mobility as a service TRAVEL & PAYMENTS Pay As You Go Mobility Card Olympus Mobility services & platforms The move from ownership to usage Private Lease The surge of connected cars Fleet Financing Fleet Services Driver Services FLEXIBILITY & MULTI MODAILITY E-MOBILITY Mobility Solutions Ricaricar ALD Choice ALD Rent Mobility Bundles ALD Switch E-Go ALD Electric Connected Car ecosystem Autonomous vehicles MOBLITY PLATFORMS & SERVICES Car Sharing Solutions ALD Sharing ALD Free ALD is positioned in every aspect of mobility and has developed differentiating innovation capabilities Innovation to generate improved driver experience or/and fleet management efficiencies In-house development or Start up partnerships for innovative IT Solutions 04/09/2018 P.13

14 THANK YOU 04/09/2018 P.14