ALD : Trading update on Q1 2021 results

Press release

Paris, 6 May 2021

Trading update on Q1 2021 results

• NET INCOME (GROUP SHARE) UP 20.7% VS Q1 2020
• VERY STRONG USED CAR SALES RESULT PER UNIT AT EUR 439 AND A RECORD VOLUME OF USED CAR SALES AT 87K UNITS
• IMPROVING COST INCOME (EXCL UCS) RATIO AT 49.9%
• STRONG PERFORMANCE CONFIRMING 2021 OUTLOOK
• TOTAL CONTRACTS1 STABLE AT 1.76 MILLION
• ACQUISITION OF BANSABADELL RENTING (SPAIN) - c. 20K VEHICLES

First quarter 2021 results highlights

• Leasing Contract and Services Margins at EUR 328.1m, up 1.5% vs. Q1 2020
• Used Car Sales Result at EUR 38.2 million
• Operating Expenses up 1.1% vs. Q1 2020
• Cost of Risk at EUR 8.7m, vs. EUR 17.8m in Q1 2020
• Net Income (Group share) at EUR 155.5m

1 Total Contracts: Term replacing Total Fleet, defined as full service lease contracts, fleet management contracts, and new mobility solutions contracts

Confirmed outlook for 2021

In view of the continued uncertainty related to the pandemic, ALD is providing an outlook for 2021 that is explicitly linked to the central assumption that the impact of the COVID-19 pandemic will gradually fade and economic conditions improve thanks to strong macroeconomic policy stimulus by governments.

For 2021 the Group confirms its expectations:

• Positive funded fleet2 growth
• Positive Used Car Sales Result per unit
• Improvement in Cost/Income ratio (excluding Used Car Sales result)

On 6 May 2021, Tim Albertsen, ALD CEO, commenting on the Q1 2021 Group Results, stated:

"2021 started with many expectations such as the end of the sanitary crisis and the restart of economic growth but the timing was a little slower than we all had hoped for. In Q1, many Western European countries were still under lockdowns and our industry was affected by the microchips shortage observed at global level. However, ALD has once again demonstrated its strength and agility in these complicated times, by accompanying its clients in need of a mobility solution with temporary solutions when new cars were not available. Our operating and financial performance in Q1 2021 was strong. Our remarketing tools have once again proven their efficiency and achieved an excellent performance over the quarter. We have already launched several projects which make us confident we will deliver our Move 2025 strategic plan."

2 Full Service Lease contracts including ALD Flex and Used Car Lease

Page 2 of 8

Strong order bank comforting positive funded fleet growth outlook for 2021

The beginning of 2021 has been affected by a growing shortage in the supply of semiconductors which has limited the production capacity of new cars. As global demand has increased, this shortage has caused delays in the delivery of new cars, including by ALD.

In this context, ALD continued to show efficient support to its clients by proposing contract duration extensions to customers in need of a temporary solution due to the new vehicle shortage context.

The increasing delivery time of new cars, together with the lower order intake in H2 2020 and the lockdown measures taken in Western Europe, slowed down ALD's growth in Total Contracts, which nevertheless remained roughly stable over Q1 21, decreasing by 1.0% vs. March 2020.

Commercial activity was dynamic over the quarter, leading to a strong order bank at quarter end. This, together with the boost from external acquisitions, comforts the company's expectation of a positive funded fleet growth in 2021.

Full Service lease contracts3 reached 1,370 thousand units and Fleet management4 389 thousand units.

Strong performance confirming 2021 outlook

Leasing contract and Services margins proved their resilience in Q1 21, growing 1.5% vs. Q1 20, outpacing growth in Total Contracts.

Leasing Contract Margin reached EUR 178.7 million in Q1 21, up EUR 13.7m vs. Q1 20. Services Margin reached EUR 149.3 million, down EUR 8.7m vs. Q1 20. The Services margin benefits from lower maintenance costs but is penalised by a reduction in over mileage billing income.

ALD's Gross Operating Income reached EUR 366.3 million in Q1 21, up 12.3% vs. Q1 20, mainly due to the strong performance of remarketing.

The contribution to Gross Operating Income from Used Car Sales result reached EUR 38.2 million in Q1 21. The volume of cars sold during Q1 21 reached a record level of 87K5 units, underpinned by

1. Including ALD Flex and Used Car Lease
2. Including new mobility solutions
3. Management information

Page 3 of 8

a strong preference for cars over public transport for pandemic reasons and the productivity of ALD's remarketing operations. Used car sales per unit landed at EUR 439. The recovery of the used car market, started in H2 20, continued due to strong demand, and benefiting from the supply disruption caused by the semiconductor shortage.

Total Operating Expenses increased by EUR 1.8 million to EUR 163.9 million. Cost income (excl. UCS result) ratio decreased to 49.9%, illustrating once again the strong cost control in ALD's operations.

Cost of risk halved vs. Q1 20 with impairment charges on receivables reaching EUR 8.7 million in 2021, as the economy benefits from strong support from governments.

Income tax expense reached EUR 36.8 million, bringing the effective tax rate to 19% for Q1 21.

ALD recorded Net Income (Group Share) of EUR 155.5 million in Q1 21, up from EUR 128.9 million in Q1 20. When restated for the impact from sale of ALD Fortune in Q1 20, Net Income (Group share) grew by EUR 36.6m vs. Q1 20.

Key strategic initiatives & operational developments

Bolt-on acquisitions

Acquisition of Bansabadell Renting

On 29 April 2021, ALD signed an agreement to acquire Bansabadell Renting, the renting arm of Banco Sabadell in Spain, totaling c. 20,000 vehicles. The acquisition also includes the entry into a white label distribution agreement whereby Banco Sabadell will make available to its SME and Private Lease customers in Spain a full service leasing solution managed by ALD.

The completion of this transaction will be subject to the agreement of the Spanish Competition Authority.

Selected by Lynk & Co as preferred mobility membership partner in 7 countries

On 13 April 2021, Lynk & Co, the global mobility brand, announced it had selected ALD as its preferred mobility membership partner to provide full-service leasing services to large corporates and small to medium sized companies in 7 countries across Europe: Germany, Spain, Italy, France, the Netherlands, Belgium and Sweden.

This development further strengthens ALD's ability to provide its clients with access to a broad

range of electric vehicles. The launch of the fully digital journey is expected in Q2.

Page 4 of 8

ChargeUp Europe welcomes ALD Automotive as its first ecosystem partner

On 24 March 2021, ALD joined the ChargeUp Europe association as its first ecosystem partner. With the addition of ALD, ChargeUp Europe is expanding to cover the whole electric vehicle charging value chain.

Distribution partnerships

Reinforcement of international leasing partnership agreement with Mazda

On 30 March 2021, ALD signed a leasing partnership agreement with Mazda in Belgium and Luxembourg to provide operational leasing services for Mazda's entire range of leasing products to corporates, small to medium sized companies and private individuals in both countries.

Mazda selected ALD for its innovative offering and market leading expertise as a global distribution partner.

Reinforcement of international leasing partnership agreement with Ford in Ireland

On 18 March 2021, ALD signed a leasing partnership agreement with Ford in Ireland to provide operational leasing services products for Ford's full range of vehicles in the country.

This agreement reinforces the existing successful partnership of more than 15 years between the two companies

ALD launches connected car solution in Spain

On 6 April 2021, ALD announced the launch of ALD ProFleet in Spain, a newly enhanced connected car solution that provides fleet managers and drivers access to their real-time connected car data. ALD ProFleet helps facilitate overall fleet management efficiency, optimize fleet utilization, generate fleet savings, improve driver experience and contribute to strategic fleet decision making for both corporates and SMEs thanks to data-based services.

Page 5 of 8