Press release from Business Wire India
Source: LeasePlan India
Thursday, February 02, 2012 10:30 AM IST (05:00 AM GMT)
Editors: General: Consumer interest, Economy; Business: Automotives, Banking & financial services, Business services, Financial Analyst, Media & entertainment, Stock exchanges
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LeasePlan Reports 13% Net Profit increase to EUR 225 million in 2011
Almere, Netherlands, Thursday, February 02, 2012 -- (Business Wire India) -- LeasePlan Corporation N.V., the world's leading fleet and vehicle management company, today published its annual results for 2011.
KEY HIGHLIGHTS
-- Net profit increased by 13% to EUR 225 million, compared to EUR 199 million in 2010
-- Total number of vehicles increased by 2.7% to over 1.3 million
-- Diversified funding strategy on track with LeasePlan Bank again proving to be a strong performer
-- Strong solvency position with core tier 1 ratio of 14.9%
-- All three major rating agencies recognise resilience of performance by maintaining outlook at stable
KEY NUMBERS
Vahid Daemi, Chairman and CEO of LeasePlan Corporation said:
"LeasePlan once again delivered impressive results in an economic environment that continues to present many challenges. Net profit for the year grew by 13% to EUR 225 million, fuelled by substantial improvements in traditional interest margins and stable performance in other diversified income streams. Our ability to deliver consistently strong profitability from a range of sources reflects the scale advantages of our business model. Additionally, we ended the year in a strong solvency position. The core tier 1 ratio of 14.9% is well above current and future (Basel III) requirements and risk-weighted assets are at EUR 14.0 billion (EUR 12.8 billion end of 2010).
Despite a tough environment for growth, LeasePlan remained focused on its sustainable growth path. The number of vehicles increased by 2.7%, chiefly owing to an acquisition in Portugal and supported by autonomous growth namely in our largest markets. Thanks in particular to our ability to adapt to market conditions, we have continued to serve our clients well by providing the right products and services. This is evident in an increase globally in client satisfaction and loyalty.
Owing to the limited economic recovery and ongoing market uncertainties, we did experience a negative trend throughout the year on the results for terminated contracts. This resulted in an overall outcome for terminated contracts in 2011 that was worse than 2010. The result shows a mixed picture with some countries experiencing difficulties, while in other countries the news is more positive. On average vehicles terminated were sold with a loss, with a marked deterioration in the second half of the year. On a positive note, we are able to compensate the negative trend in terminated contracts with stronger performance in other areas due to our diverse income streams.
FUNDING OUR BUSINESS
Despite the uncertainties in the financial markets, our diversification strategy is still on track. Our retail bank in the Netherlands, LeasePlan Bank, entered its second full year of operation with very promising figures of almost EUR 2.8 billion in deposits, including a large number of term deposits.
Further to the success of our retail bank, we built on the momentum of securitising lease assets with a private placement, Bumper 2, that yielded EUR 602.4 million and a public placement, Bumper 4 that yielded EUR 727.5 million. Despite the difficult conditions, we continued to conclude regular issuances in the unsecured debt capital market. We further built on this success with the latest debt capital market transaction completed in the first week of January 2012. LeasePlan ended 2011 with a healthy liquidity buffer consisting of over EUR 3.0 billion of committed facilities and over EUR 1.5 billion in cash.
OUTLOOK FOR 2012
With the encouraging performance of last year, we enter 2012 with confidence in the strength and stability of our business model and global franchise. Although we look ahead with cautious optimism about the level of performance we can achieve during 2012, we recognise that future performance and growth opportunities will be in the context of ongoing uncertainties of global economic conditions and volatility of financial markets."
CREDIT RATINGS
LeasePlan's long term unsecured debt ratings remained stable and unchanged from the previous year, as rated by Standard & Poor's (BBB+), Moody's (A3) and Fitch (A-).
Notes to editors
About LeasePlan
LeasePlan is a global fleet and vehicle management company of Dutch origin. Our full service offering consists of financing and operational fleet management services to meet the needs of a diverse client base. Established 49 years ago, we have grown to become the world's leading fleet and vehicle leasing company with over 85% of our over 6,000 person workforce now operating outside of the Netherlands. Our global franchise manages over 1.3 million multi-brand vehicles and provides fleet and vehicle management services in 30 countries. We have a proven track record in enhancing our presence in traditional mature fleet markets, as well as expanding into new markets and growing our business to market leading positions. We are able to capitalise on our global presence and international network by providing innovative products, value for money and superior service to meet the needs of both national and multinational clients. We aim to do this by using our expertise to make running a fleet easier for our clients. This is reflected in our universal promise to all our clients: 'It's easier to leaseplan'.
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Key.pdf
CONTACT DETAILS
Shalini Baveja, Head - Marketing & Corporate Strategy, LeasePlan India, +919871485300, shalini.baveja@leaseplan.co.in
KEYWORDS
CONSUMER, ECONOMY, AUTOMOTIVE, BANKING, BUSINESS SERVICES, Financial Analyst, MEDIA, STOCK EXCHANGES
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