ALD : reports full year 2020 results -2-

Average sales margin for the year on used vehicles[11] came in at EUR 201 per unit, above the EUR -50 to 150 guidance and moderately down from EUR 254 in 2019. The Q4 20 average was EUR 481, up from EUR 333 recorded in the previous quarter, principally due to a strong recovery of used car markets over H2 and the reversal of EUR 15.2m out of the EUR 18.6m used car stock impairment provision recorded in H1 in light of the decreased stock level over H2.

The number of used cars sold11 in Q4 20 was 89 thousand bringing the total for 2020 to 305 thousand, up 3.1% vs. 296 thousand in 2019 and a record volume. The efficiency of electronic platforms played an important role in this performance.

Total Operating Expenses decreased by EUR 1.3 million to EUR 633.7 million, illustrating the strong cost control in ALD's operations. The continued investment in IT drove a EUR 4.1 million increase in depreciation and amortisation, offset by the reduction in staff and General & Administrative expenses.

Cost/Income (excluding Used Car Sales result) ratio reached 50.4% in 2020, significantly impacted by the excess depreciation charge recorded over 2020, but nevertheless inside the 50% to 51% guidance range. When excluding the effect of excess depreciation, Cost/Income (excluding Used Car Sales result) ratio continued its downward trend in 2020.

Impairment charges on receivables reached EUR 71.1 million in 2020, rising by EUR 26.2 million vs. 2019. A significant part of this increase was due to a EUR 15.4m forward looking provision recorded in 2020 reflecting the expected increase in probability of customer default due the macroeconomic uncertainty. The reported cost of risk[12] reached 34 bps in 2020, and 27 bps when excluding the forward-looking component. Customer receivables balance remains unaffected by the pandemic at end 2020. The payment plans implemented to support customer needs and to comply with national regulation, where applicable, proved successful. In order to monitor more precisely the evolution of receivables, ALD has increased its emphasis on invoiced payment collections.

Further to the closing of the disposal of ALD's stake in ALD Fortune Auto Leasing & Renting (China) on 28 February 2020, a EUR 10.0 million post-tax profit was recorded in Q1 2020.

Income tax expense was EUR 108.9 million in 2020, down slightly from EUR 122.2 million in 2019. The effective tax rate of 17.7% for 2020 continued to benefit from the favourable impact of the Italian Stability Law, which amounted to EUR 37 million for the year. Driven by a successful contract duration extension campaign, the Italian Stability Law has continued to weigh positively on the Group effective tax rate.

ALD recorded Net Income (Group Share) of EUR 509.8 million in 2020, down from EUR 564.2 million in the previous year, a drop principally due to excess depreciation and forward looking provisions. Q4 20 Net Income (Group Share) was EUR 162.4 million, vs. EUR 137.4 million in Q4 19.

Earning Assets decreased by 1.7% at the end of 2020 vs. the end of the previous year, reaching EUR 20.8 billion, reflecting the slight funded fleet decrease and the impact of contract extensions.

Equity reinvestments in long-term deposits decreased by EUR 82 million, as amortising deposits with Societe Generale continue to run off. Other assets decreased to EUR 3,068 million from EUR 3,164 million at end 2019.

Total funding at the end of 2020 stood at EUR 17.6 billion (down from EUR 18.4 billion at the end of 2019) of which 68% consisted of loans from Societe Generale. The Group benefits from strong long-term ratings from Fitch Ratings (BBB+) and S&P Global Ratings (BBB) with stable outlooks.

The Group's Total Equity to Total Assets ratio stood at 16.7% at the end of 2020, vs. 15.7% at the end of 2019, reflecting the company's solid earnings generation in a year without fleet growth.

The Return on Average Earning Assets[13] in 2020 was 2.4% (vs. 2.8% in 2019), while ALD's ROE9 came in at 12.5% (vs. 14.8% in the previous year).

Earnings Per Share[14] for 2020 amounts to EUR 1.26, vs. EUR 1.40 in 2019. The Board of Directors has decided to propose to the General Meeting of Shareholders to distribute a dividend of EUR 0.63 per share in respect of the 2020 financial year, unchanged from the previous year and corresponding to a payout ratio of 50% (up from 45% last year). Conditional on this approval, the dividend will be detached on 28 May 2021 and paid on 1 June 2021.

Key strategic initiatives & operational developments

Deployment of fully digital journeys

Following the agreement signed with Tesla early 2020, ALD is now offering digital journeys for customers in 14 countries.

Over 2020, ALD together with its partner Polestar, the new Swedish electric performance vehicle brand, also added Belgium to the list of countries where the fully digital online journey was available for BtoB customers. This platform, now live in 4 countries, provides a seamless customer journey between Polestar and ALD ecosystems, from configuration of the vehicle to credit assessment and e-signing of the contract.

Following the same model, ALD and Ford have deployed a fully digital solution for the Mach-e, first 100% electric SUV of the brand. This solution is operating in 4 countries.

These developments widen the range of electric vehicles offered under a full service lease and demonstrate both the relevance and the value of ALD's digital capabilities achieved through a permanent focus on delivering best-in-class leasing services to customers.

Using the same technology, ALD is now able to provide its private customers with fully digital journeys on its own websites in 5 countries.

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

In 2020, ALD became Lynk&Co's preferred mobility membership partner in 7 European countries. 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.

Ford Fleet Management UK open for business

Following the shareholder agreement signed in July 2020 to create Ford Fleet Management, an integrated leasing and fleet management solution for European customers, Ford Fleet Management has started operations in the UK.

South-East Asian strategy

Following clearance by the authorities, activity has started in Malaysia, and ALD has seen its first client win.

Further expansion in the region is under preparation.

Conference call for investors and analysts

Date: 10 February 2021, at 10.00 am Paris time - 9.00 am London time

Speakers: Tim Albertsen, CEO and Gilles Momper, CFO

Connection details:

* Webcast

* Conf call: [phone] Password: ald full year

2021 Agenda

6 May 2021 Trading update and Q1 results

19 May 2021 General assembly of shareholders

3 August 2021 Q2 and H1 results

4 November 2021 Trading update and Q3 results

Press contact

Stephanie Jonville

ALD Communication Department

Tel.: [phone]

[e-mail]

About

ALD

ALD is a global leader in mobility solutions providing full service leasing and fleet management services across 43 countries to a client base of large corporates, SMEs, professionals and private individuals. A leader in its industry, ALD places sustainable mobility at the heart of its strategy, delivering innovative mobility solutions and technology-enabled services to its clients, helping them focus on their everyday business.

With 6 500 employees around the globe, ALD manages 1.76 million contracts (at end-December 2020).

ALD is listed on Compartment A of Euronext Paris (ISIN: FR0013258662; Ticker: ALD) and is included in the SBF120 index. Société Générale is ALD's majority shareholder.

This document contains forward-looking statements relating to the targets and strategies of ALD SA (the "Company") and its subsidiaries (together with the Company, the "Group"). These forward-looking statements are based on a series of assumptions, both general and specific, in particular the application of accounting principles and methods in accordance with IFRS (International Financial Reporting Standards) as adopted in the European Union. These forward-looking statements have also been developed from scenarios based on a number of economic assumptions in the context of a given competitive and regulatory environment. The Group may be unable to: - anticipate all the risks, uncertainties or other factors likely to affect its business and to appraise their potential consequences; - evaluate the extent to which the occurrence of a risk or a combination of risks could cause actual results to differ materially from those provided in this document and the related presentation. Therefore, although the Company believes that these statements are based on reasonable assumptions, these forward-looking statements are subject to numerous risks and uncertainties, including matters not yet known to it or its management or not currently considered material, and there can be no assurance that anticipated events will occur or that the objectives set out will actually be achieved. Important factors that could cause actual results to differ materially from the results anticipated in the forward-looking statements include, among others, overall trends in general economic activity and in the Group's markets in particular, regulatory changes, and the success of the Company's strategic, operating and financial initiatives. More detailed information on the potential risks that could affect the Company's financial results can be found in the Registration Document and in the Last Financial Report filed with the French Autorité des Marchés Financiers. Investors are advised to take into account factors of uncertainty and risk likely to impact the operations of the Group when considering the information contained in such forward-looking statements. Other than as required by applicable law, the Company does not undertake any obligation to update or

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