OPPORTUNITIES OF OPERATIONAL LEASING ON INTERNATIONAL & REGIONAL LEVEL - EXAMPLE OF CZECH REPUBLIC...

OPPORTUNITIES OF OPERATIONAL LEASING ON INTERNATIONAL & REGIONAL LEVEL - EXAMPLE OF CZECH REPUBLIC

THOMAS SCHROEDERMILAN PTACNIK

PRAGUE FEBRUARY 1-3, 2012

AGENDA

PAGE 2

About LeasePlan

Fleet Decision Making Process

International Fleet Management Challenges & Solutions Fleet Financing Fleet Policy

Example of a local solution LeasePlan Czech Republlic

ABOUT LEASEPLAN

Global market leader in fleet and vehicle management

Founded in 1963 in The Netherlands

Owned by a consortium of : Volkswagen Bank GmbH (50% Fleet Investments B.V. (50%)

Global presence with offices in 30 countries 1.3 million cars managed

Well-diversified corporate customer base Manufacturer independent

Universal banking license, supervised by the Dutch Central Bank

Proven track record in managing risk

AGENDA

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About LeasePlan


International Fleet Management Challenges & Solutions Fleet Financing Fleet Policy


FLEET DECISION MAKING PROCESSWHERE ARE THE DECISIONS BEING MADE?

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Source: Fleet Market Research 2011, ConsultPlus

IN WHICH COUNTRY IS THE DECISION MAKER POSITIONED?

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WHICH DEPARTMENT IS IN THE LEAD OF FLEET MANAGEMENT

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Note: 30% of the time the person in charge of Fleet is also responsible for Travel within the company.


STRATEGIC & OPERATIONAL DECISION FLOW

Int’l Agreement / Services / SLA

Communication

Strategic Reviews / Fleet Control / Consultancy

Operational Account Reviews / Policies & Controls

Communication

Invoicing & Authorisations

HQ Fleet Management

Company Int’l Procurement Manager / Fleet

Manager etc.

HQ Company

OpCo Fleet Management

Company

Local Subsidiary

Country Fleet Manager

DRIVER

Quotes, Orders, Renewals, Help

Policy

AGENDA

PAGE 9

About LeasePlan


International Fleet Management Challenges & Solutions Fleet Funding Fleet Policy


CHALLENGES & SOLUTIONSECONOMY

EUROPE – Again recession

Significant financial issues in a number of countries putting the Euro under pressure

Replacement of governments

Commercial banks under pressure

Funding cost are rapidly increasing

Increased governmental savings measures

EUROPE – Again recession

Significant financial issues in a number of countries putting the Euro under pressure

Replacement of governments

Commercial banks under pressure

Funding cost are rapidly increasing

Increased governmental savings measures

CENTRAL / EASTERN EUROPE – Higher inflation

Price growth due to weakening currencies and a worsening economic outlook

Political unrest in same markets

Russia, developing market

But modest growth in 2012

Other markets:

HU/SK 10 % growth expected

PL /RO 15% growth

CENTRAL / EASTERN EUROPE – Higher inflation

Price growth due to weakening currencies and a worsening economic outlook

Political unrest in same markets

Russia, developing market

But modest growth in 2012

Other markets:

HU/SK 10 % growth expected

PL /RO 15% growth

CHALLENGES & SOLUTIONSFUNDING

CEE definitely remains a growth market

Cost for financing rapidly increasing

Access to funding is still limited

Therefore cost reductions more needed than ever before

Consolidation of the lease market is continuing

Less local market players

Increasing presence of global fleet management companies

CHALLENGES & SOLUTIONSSTRATEGY

Outright purchase Financial lease Operational lease

Companies are focusing on price more than before and trying various purchasing strategies

Changing Tax regulations

Lease Accounting Standards (IFRS)

Commercial car market opening up for operational lease

Car policy subject to change

Corporate Social Responsibility

CHALLENGES & SOLUTIONSCAR POLICY

Changes in company car policies Increased focus on cost control and cost reduction opportunities

Dual supply ship Pro-active fleet management Upfront pricing and TCO Make restrictions (German brands remain popular in CEE) Term & mileage optimisation

Increased focus on environmental aspects and driver behaviour CO2 Thresholds

Budgets including fuel Fuel management and influencing driver behaviour Incentives to motivate BIK drivers Accident management and driver training

19/04/23PAGE 14

Need for a consolidated view of your global fleet and its development across different countries

Need for a balanced approach to international fleet management incorporating cost, environment and risk related aspects

Need for internal visibility of spend for this ‘category’, pro-actively communicate achieved results in areas such as cost management, carbon footprint reductions, OEM management and risk related achievements

Need for effective steering and guidance of local fleet responsible

CHALLENGES & SOLUTIONSREPORTING REQUIREMENTS

GLOBAL INITIATIVES

focus on long term opportunities

International business leading to local growthBest practice sharingManufacturer AgreementsOptimised & proven fleet policies

Best practice implementation

Channeled sourcing, various options

Optimised fuel and CO2 policy

Optimised car choice, terms and mileage

Direct driver contact

Local reporting in international reports

Use of e-business tools

Make use of beneficial tax regulation

Key Topics

LOCALINITIATIVES

Country 1

LOCALINITIATIVES

Country 1

LOCALINITIATIVES

Country 1

A BEST PRACTICE SOLUTION FOR CHALLENGING GROWTH

CHALLENGES & SOLUTIONSCONCLUSIONS

Ongoing economic challenges

Operational leasing is expected to grow in CEE countries

CEE countries will benefit from Global / European leasing and fleet maanagement contracts

Increased focus on cost and cost reduction opportunities and environmental aspects

Importance of strong link to headquarter companies and coordination of global and national initiatives

AGENDA

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About LeasePlan


International Fleet Management Challenges & Solutions Fleet Funding Fleet Policy

CSR


OPERATIONAL LEASINGCZ MARKET

MILAN PTÁČNÍK, LEASEPLAN ČR

CONTENT

CZ Car Market Overview

Business Cars Financing Trends

Car Volumes (by CLFA members)

BER (Block Exemptions) Motor Vehicle Sector

Why Full Service Operational Leasing?

19/04/23CZECH OPERATIONAL LEASING MARKETPAGE 19

CZECH CAR MARKET

Since 2009Q2 VAT deduction allowed for PC


CHANGE IN CAR FINANCING FOR BUSINESS

Operational Lease + Non banking Growth Tax Depretiation from 3 to 5 years (FinLease advantage disapeared)


CAR VOLUMES FINANCED BY CLFA MEMBERS


MOTOR VEHICLE SECTOR „BLOCK EXEMPTIONS“

Commission Regulation (EU) 1400/2002 Car sale Leasing companies should be treated as the end-client but…

Commission Regulation (EU) 461/2010 & 330/2010 Maintenance & spare parts sale Client do not loose the car guarantie when using non-original spare

parts & by using maintenance providers independent on car producers Car make independent networks development at the Czech market Price sensitive clients already benefits from this regulation!


WHY FULL SERVICE LEASING?

CORE BUSINESS focus and capacities TCO (= money) SAVINGS realized, overview, controll Clear and predictable CASH-FLOW Less financial sources allocated to company car fleet Invoiced instalments = tax costs Hassle free mobility for employee is secured No financial / car operability surprises Professional car fleet management Full package of services available Single point of contact

Note: Following comparisons are based on LeasePlan internal data sources and estimations.


TIME EARNED FOR CORE BUSINESS


TCO SAVINGS POTENTIAL

Return on invested capital / lost opportunity costsEfficiency of the total processAdministration


OPPORTUNITIES OF OPERATIONAL LEASING ON INTERNATIONAL & REGIONAL LEVEL - EXAMPLE OF CZECH REPUBLIC...

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