ALD : HALF-YEARLY FINANCIAL INFORMATION ALD reports first half 2020 results

• SOUND OPERATING PERFORMANCE ILLUSTRATING THE RESILIENCE OF THE BUSINESS MODEL AND THE AGILITY OF THE ORGANISATION
• FUNDED FLEET UP 3.1% VS. END JUNE 2019, OPERATING MARGINS [1] UP 3.1%
• SOLID PROVISIONING AND EXCESS DEPRECIATION CHARGES TOTALLING EUR 62 MILLION
• USED CAR SALES RESULT PER UNIT AT EUR -92 ON AVERAGE IN H1
• EUR 3.4 MILLION DECREASE IN OVERHEADS DEMONSTRATING ABILITY TO CONTROL COSTS
• NET INCOME (GROUP SHARE) AT EUR 206.8 MILLION

H1 2020 Results highlights

• Total Fleet 1.76 million vehicles managed worldwide at end June 2020, +3.8% vs. June 2019
• Leasing Contract and Services Margins down EUR 22.0 million, incorporating the impact of the fleet revaluation process: EUR 30.0 million excess depreciation charge in H1 2020 vs. EUR 11.3 million release in H1 2019
• Used Car Sales result at EUR -11.6 million, including impairment of used car stock of EUR 18.6m
• Cost of Risk at 46 bps[2], including a forward-looking provision under IFRS9
• EUR 10.0 million after tax profit on disposal of stake in ALD Fortune (China) in Q1 2020
• Total Equity/Asset ratio at 15.6%, up from 15.2% at end June 2019

New Guidance for 2020 [3]

• Total Fleet growth (organic) close to 0% versus 2019, plus bolt-on acquisitions as opportunities arise
• Used Car Sales result per vehicle to average EUR -250 to EUR 0
• Cost/Income (excluding Used Car Sales result) ratio between 50% and 51%
  

On 3 August 2020, Tim Albertsen, ALD CEO, commenting on the H1 2020 Group Results, stated:

'H1 2020 was a live stress test for many companies. In the context of the Covid-19 crisis ALD has demonstrated the strength and resilience of its business model, as well as the agility of the organization. This crisis saw the rise of new types of demands which ALD was able to answer quickly and efficiently. Flexible offers were deployed in over 19 countries and used car lease actively promoted. Despite the challenges, ALD has continued to work very actively, with both clients and partnerswho recognise the Company as a stakeholder they can rely on. Our operating and financial performance in H1 was sound despite inclusion of several provisions reflecting potential upcoming risks. As a pick-up is observed in main markets, ALD stays alert to opportunities while paying careful attention to costs. ALD intends to continue to lead the market. We feel we have sufficient visibility to issue new operating guidance for 2020, premised on the assumption that major European countries will not be forced to return to a severe lockdown for an extended period. We are also announcing a Capital Markets Day to be held on November 12th during which we will present our business strategy for the years to come.'

Annualised Cost of Risk as a % of Average Earning Assets
Premised on the assumption that major European countries will not be forced to return to a severe lockdown for an extended period

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