Leasing in Europe and Beyond

State of Play and Outlook

Athens, Greece | 6 October 2016

o Leasing in Europe & Beyond

o Growth in Europe

o Leased Assets & Customers

o State of the Industry

o Industry Performance

o Business Development

Agenda

Leasing in Europe &

Beyond

4

US

ELFA

244 bil€

Leaseurope

315 bil€

Japan

JLA

38 bil€

New equipment leasing volumes. ELFA figures do not include passenger car leasing.

Source: Leaseurope 2015 Annual Survey, local leasing associations, Leaseurope estimates

Brazil

ABEL

2 bil€

Australia

AELA & AFLA

8 bil€

Global Leasing Markets in 2015

Canada

CFLA

20 bil€

China

CLA

648 bil€

9%

23%

4%

-19%

13%

4%

10.3%

-4.2%

9.4%

European leasing market - new volume growth (% YoY)

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

Total volumes Real Estate Equipment incl

vehicles

€314.9 bil €16.4 bil €298.4 bil

New

volumes

2015

Total outstandings:

(2014 vs 2015)

3.2%

Evolution of the European Leasing Market

Annual growth of new leasing volumes per country

Members not

reporting & non -

members

Leaseurope’s 2014 Annual Survey

Growth rates are adjusted for exchange rate fluctuations

2014/2013

9.5%

0 to 5%

5 to 10%

-5 to 0%

Under - 5%

10 to 20%

0 to 5%

-5 to 0%

Over 20%

European Leasing Market in 2014

Annual growth of new leasing volumes per country

Members not

reporting & non -

members

Leaseurope’s 2015 Annual Survey

Growth rates are adjusted for exchange rate fluctuations

2015/2014

9.4%

0 to 5%

5 to 10%

-5 to 0%

Under - 5%

10 to 20%

0 to 5%

-5 to 0%

Over 20%

European Leasing Market in 2015

Biannual growth of new leasing volumes per country

H1 2016/2015

13.7%

Source: Leaseurope Member Associations

27 Member Associations reporting; growth rates adjusted for exchange rate fluctuations

European Leasing Market in H1 2016

Members not

reporting & non -

members

0 to 5%

5 to 10%

-5 to 0%

Under - 5%

10 to 20%

0 to 5%

-5 to 0%

Over 20%

Leased Assets &

Customers

Leased assets

Share of Total new lease volumes per asset category, %

Source: 2015 Annual Survey

2014

66%

Automotive

Machines & equip

Cars

CVs

ICT

Big/other

Real estate

2015

European Leasing Market in 2015

6%

17%

6%

45%

18% 8% 18%

48%

5%

16%

6%

7%

-10%

-5%

0%

5%

10%

15%

20% Total

New lease volumes per asset type – % period on period

(2015/2014)

-15%

Real estate Movables

Growth rates are calculated based on a homogenous sample of members reporting from year to year & are adjusted for exchange rate fluctuations

Source: 2015 Annual Survey based on 32 members reporting

-10%

-5%

0%

5%

10%

15%

20%

-15%

9.4%

-4.2%

10.3%

-5%

0%

5%

10%

15%

20%

25%

0.5%

10.0%

-10%

-15%

-20%

Machinery ICT CVs Cars Big Other

11.3%

15.9%

-2.4% -1.4%

European Leasing Market in 2015

25%

NA

20% to 25%

25% to 30%

10% to 15%

15% to 20%

< 10 %

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 2015 Annual Survey

Equipment

penetration

Share of equipment investment financed by leasing (2015)

> 30%

European Leasing Penetration

Evolution of leasing penetration in Europe

19 countries (1999-2015)

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 ’99-’15 Source: Leaseurope, Eurostat and AMECO (GFCF)

European Leasing Penetration

10

30

50

70

90

110

130

150

170

190

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

No

rmalised

PR

1999 =

100

Total Equipment Real estate

Leasing clients

New movables leasing volumes by client sector

(2015)

Source: 2015 Annual Survey

European Leasing Market in 2015

Businesses

69%

Consumers

24%

Public sector

3%

Other

4%

% movable

leasing

volumes

Leaseurope©

• The use of leasing grows with the size of the firm

• Leasing is the source of finance with largest proportion of SMEs signalling an increased

need for it

• The same holds true across SMEs of various characteristics, especially for innovative,

exporting, high-growth firms and gazelles

Source: European Commission SAFE Survey, Apr. – Oct. 2015

SMEs reporting an increased need for external financing in

the past six months (April to September 2015) in the EU-28, by

firm characteristics

% of SMEs

Leasing to European SMEs

State of the Industry

2015 Ranking survey results • Value of total new contracts within Europe in 2015 (€ thousands)

Name Country EU

Countries

Value

2015

Value

2014

1 Société Générale Equipment Finance (incl. ALD) * France 35 15,933,068 -

2 BNP Paribas Leasing Solutions (incl. Arval)* France - 15,110,634 -

3 Volkswagen Leasing GmbH Germany 3 13,937,752 12,205,747

4 De Lage Landen International B.V. * Netherlands 21 10,922,637 10,036,511

5 Deutsche Leasing * Germany 19 7,717,500 7,436,400

6 UniCredit Leasing S.p.A. Italy 16 6,905,568 6,701,884

7 LeasePlan Coporation N.V. * Netherlands 24 6,254,306 4,775,378

8 Alphabet International * Germany 13 5,883,300 4,940,500

9 Nordea Finance Sweden 7 5,126,875 4,987,973

10 Crédit Agricole Leasing & Factoring * France 4 4,716,843 4,221,734

*These companies also have operations outside Europe

Characteristics of European Market Players

2015 Ranking survey results • Value of total new contracts within Europe in 2015 (€ thousands)

Name Country EU

Countries

Value

2015

Value

2014

11 CM-CIC BAIL France 7 3,813,410 3,577,095

12 RCI Banque * France 16 3,653,845 2,901,783

13 DNB Finans Norway 3 3,266,025 3,076,198

14 ING Lease * Netherlands 8 2,873,090 -

15 NATIXIS LEASE France 3 2,870,000 -

16 Siemens Financial Services GmbH * Germany 11 2,380,992 -

17 Raifeisen Leasing * Austria 20 2,178,905 2,210,641

18 Porsche Bank AG * Austria 13 1,854,136 1,697,890

19 ABN AMRO Lease N.V. Netherlands 3 1,797,975 1,477,985

20 LBBW Leasing * Germany 1 1,611,009 -

Characteristics of European Market Players

*These companies also have operations outside Europe

Source: Leaseurope 2015 Ranking Survey of Top European Leasing Companies, BCS June 2016

Market concentration: % of total new volumes reported in

2015 Ranking Survey

% of all new volumes reported

62%

% of all new volumes reported

79%

TOP 20

TOP 10

All new volumes reported

150 bil €

All firms

in Ranking Trends:

• Likelihood of

new entrants

is moderate

• M&A activity

expected to slow

down

% of total new volumes reported in Ranking

0

20

40

60

80

0% 20% 40% 60% 80% 100%

TOP 10 TOP 20

Characteristics of European Market Players

Source: Leaseurope 2015 Ranking Survey of Top European Leasing Firms

New Volumes granted

by TOP 20 (LHS) 2015

All firms

New volumes granted

by all firms (LHS)

Number of firms using

channel (RHS)

TOP 20 firms

2014

Distribution channels used by firms in 2015 Ranking Survey

Characteristics of European Market Players

From 30% to 31%

of new volumes

From 7% to 6% of

new volumes

Industry Performance

Source: Leaseurope Index

The Leaseurope Index – median ratios (2014-Q2 2016)

Profitability ratio Cost / income ratio

Cost of risk ratio

Leaseurope Index

Source: Leaseurope Index

The Leaseurope Index – median ratios (2014-Q2 2016)

RoA RoE

Leaseurope Index

Leaseurope Index: Segment Survey 2015

• 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 2015 survey is the fifth edition of the project

Leaseurope Index

Profitability per asset segment, medians (2011-2015)

Leaseurope Index

Cost/income per asset segment, medians (2011-2015)

Leaseurope Index

Cost of risk per asset segment, medians (2011-2015)

Leaseurope Index

RoA per asset segment, medians (2010-2014)

Leaseurope Index

Business

Development

Future trends

The new international lease accounting standard IFRS 16 underway

Leasing as a key part of a more sustainable economic model

(circular economy, changing consumer behaviour…)

Technological evolution at the forefront of innovative financing

solutions (big data, IT, manufacturing…)

Advantages and/or limitations of funding opportunities

Changing competitive landscape (merger & acquisitions, new

entrants…)

Concluding Remarks

Balance of expectations for business over next six months

Balance between respondents expressing positive and negative opinions of the outlook over the next six months

Source: Leaseurope/Invigors Business Confidence Survey June 2016

Margins

Bad Debt

Business Confidence Survey

Net Profit

New Business Volumes

Leasing in Europe and Beyond

State of Play and Outlook

Athens, Greece | 6 October 2016