delivering any car, anytime, anywhere

258 Pages·2017·15.65 MB·English

DELIVERING
ANY CAR,
ANYTIME,
ANYWHERE
LeasePlan Annual Report 2017
LeasePlan Annual Report 2017 2
CONTENTS
01 10 16
At a glance Risk management Governance
3 71 108
02 11 17
Performance Leadership team Financial statements
79 115
highlights 2017
6 12 18
03 In-Control Statement 87 Other information 249
CEO Statement
7 13 19
04 Chairman of the Supervisory Glossary 258
Our business Board Statement
11 89
05 14
Our markets Report from the
32
Supervisory Board
06 92
What’s next strategy 42 15
Remuneration report
07 101
People
52
08
Sustainability
56
09
Financial and
business review
64
LLeeaasseePPllaann AAnnnnuuaall RReeppoorrtt 22001177 33
01. AT A GLANCE
WE ARE
WHAT’S NEXT
LeasePlan is a global leader in Car-as-a-Service,
with 1.7 million vehicles under management in
over 30 countries.

Our core businesses are Car-as-a-Service for new cars,
a €68bn market, and CarNext com, an independent
marketplace for flexible used-car mobility solutions,
serving a €65bn market
With over 50 years’ experience, our strategy is to lead the
megatrend from ownership to usership taking place in
both these markets Our mission is to provide What’s next
in mobility via an ‘any car, anytime, anywhere’ service —
so our customers can focus on What’s next for them
01. AT A GLANCE LLeeaasseePPllaann AAnnnnuuaall RReeppoorrtt 22001177 44
Founded
1963 World leader in
Car-as-a-Service1
Fleet size European reseller
1.7m #12
vehicles
Two key markets:
Car-as-a-Service CarNext.com for 3-4 year-old high-quality cars
Addressable market Addressable market
€68bn €65bn
Key business segments Employees Countries present
Corporate Private individuals 6,600+ 32
SME Mobility providers
1 Based on FY-2016 fleet size 2 Largest reseller of 3-4 year-old used cars in Europe, based on the number of cars sold (source: Roland Berger).
01. AT A GLANCE LeasePlan Annual Report 2017 5
EUROPE
REVENUE BY GEOGRAPHY
89%
REST OF
THE WORLD
11%
EUROPE REST OF THE WORLD
Revenues: EUR 8 3 bn Revenues: EUR 1 1 bn
Serviced fleet: 1 3 m Serviced fleet: 400,000 +
LeasePlan Annual Report 2017 6
02. Performance highlights 2017
SUSTAINABLE
16.7%
GROWTH 63%
61%
60%60%
14.9%
14.6%
532m
Growth number of vehicles 14.1%
455m
5.5% 43%
425m
381m
12.3%
304m
Savings from ‘The Power of One LeasePlan’
€130m
3 4 5 6 7 3 4 5 6 7 3 4 5 6 7
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Underlying net result Dividend payout ratio Underlying return on equity
(EUR)
532m 61% 16.7%
LeasePlan Annual Report 2017 7
03. CEO STATEMENT
LEASEPLAN HAS
DELIVERED ANOTHER
EXCELLENT SET OF
RESULTS, DEMONSTRATING
AGAIN THE CORE
STRENGTHS OF
OUR BUSINESS
03. CEO STATEMENT LeasePlan Annual Report 2017 8
Dear stakeholder,
Throughout its more than 50 years of elements of the value chain and across business we will continue to invest in
history, LeasePlan has developed a all LeasePlan countries The Power Our approach will be to target disciplined
consistent track record of sustainable of One LeasePlan was a big shift for profitable growth in the most attractive
growth and profitability 2017 was no our company: historically, LeasePlan and service-intensive segments of the
exception: the team delivered another was managed through a multi-local market: Corporate, SME and Mobility
excellent set of results, yet again organisation, with LeasePlan’s overall provider customers Within these
demonstrating the core strengths of our results being the aggregate of its local segments, we will build on our current
business We have more cars on the road business activities With The Power of high-value offering with innovative new
than ever before, and, at the same time, One LeasePlan, we are creating a fully products and services in areas including
our underlying net result and return on integrated operating model, laying the insurance, repairs and maintenance, and
equity continued to increase significantly firm foundations on which we will build low-emission vehicles
As the leader of LeasePlan, I am very our business in the future
proud to be part of such a strong
company and deeply recognise that our Looking ahead, we are now in a position
OUR EXCELLENT RESULTS
performance in 2017 could not have been to achieve so much more There is a clear
achieved without the many important megatrend from ownership to usership
IN 2017 UNDERLINE
contributions from my colleagues across and subscription models taking place
the company and the support of our in both the new and high-quality used
THE STRONG AND
customers, investors and suppliers car markets Increasingly, our customers
– whether they are corporates, SMEs,
RESILIENT NATURE OF
Our excellent results in 2017 underline the mobility providers or private individuals –
strong and resilient nature of our business would prefer a ‘Car-as-a-Service’ (CaaS)
OUR BUSINESS
as well as the ongoing positive impact with no strings attached in terms of car
of our ‘The Power of One LeasePlan’ type or duration They just want ‘any car,
operational excellence initiative, which anytime, anywhere’
we continued to implement successfully Looking further ahead, we also expect our
in the year Our objective with The Power LeasePlan will lead this trend With CaaS business to benefit significantly from
of One LeasePlan has been simple: 1 7 million cars on the road in over other megatrends in the mobility space,
to get the fundamentals in place for the 30 countries, we are already a global such as the growth of ride-hailing services
future, implementing best practices and leader in providing our high-quality in densely populated urban areas and the
leveraging LeasePlan’s scale along all customer base with new CaaS – a arrival of autonomous vehicle fleets
03. CEO STATEMENT LeasePlan Annual Report 2017 9
In addition to leading the CaaS business opaqueness, the cars on our strategy, which we also launched in
for new cars, we are also in pole CarNext com platform have a fixed 2017 The objective of LeasePlan Digital
position to lead the growth of CaaS in price and have been well maintained, is to transform LeasePlan from an
the high quality EUR 65 billion market can be trusted, come with the analogue business into a fully digitally
for the sale of high-quality 3-4 year-old guaranteed endorsement of LeasePlan enabled business, delivering digital
used cars thanks to the introduction of and a hassle-free returns policy With services through digital platforms
our new CarNext com business 1 million funded vehicles on the road at digital cost levels, leveraging the
in Europe (1 2 million funded fleet latest digital intelligence technologies
CarNext com is a disruptive B2C and contracts globally) and a guaranteed Specific focus areas include enhancing
B2B digital marketplace that enables supply of approximately 250,000 well- engagement with our customers and
customers to buy, lease and subscribe maintained cars returned every year building an online market platform for
to high-quality used cars in Europe out of our Corporate CaaS business, CarNext com We will also leverage the
The CarNext com platform will be LeasePlan has an unmatched ability to latest technology to achieve digital cost
supported by a European network of deliver ‘any car, anytime, anywhere’ in levels by automating processes using
up to 50 branded retail and experience the used car marketplace – a significant, machine learning, artificial intelligence
stores (18 today), where customers can disruptive industry development and robotics To support the rollout of
view our high-quality cars, benefit from LeasePlan Digital we were delighted
our full suite of consultation services Our leadership position in both of to open the LeasePlan Digital Hub in
and make their final decision if they these CaaS markets – as well as Amsterdam in July
prefer not to purchase directly online our continuing focus on operational
excellence and cost control across the In addition to ‘digitizing’ every aspect
In comparison to a marketplace company – will be further enhanced by of our business, a key theme for
usually characterised by distrust and our ambitious new LeasePlan Digital LeasePlan in 2017 was ‘sustainability’
As a responsible company, LeasePlan is
taking a leadership role in the transition
from the internal combustion engine
OUR LEADERSHIP WILL BE FURTHER
to alternative powertrains, helping
to create healthier environments in
ENHANCED BY OUR AMBITIOUS NEW
our towns and cities In this regard,
we took a number of important steps
LEASEPLAN DIGITAL STRATEGY
in 2017 – beginning in March with
the announcement of our ambition
to achieve net zero emissions from
03. CEO STATEMENT LeasePlan Annual Report 2017 10
the years to come – and we will continue
to invest in it Key actions here included
the introduction of our Leadership
Journeys, which we began rolling out
in 2017 and which will be extended to
the entire organisation in 2018 Taken
together, our People Strategy initiatives
will ensure we have the right people
in place with the right competencies
and mindsets for the next phase of
our journey
All our employees around the world
deserve tremendous credit for the
our total fleet by 2030, supporting on this vitally important subject – we changes to our People Strategy energy, commitment and dedication
the effective implementation of were also proud to announce that For example, we strengthened the they have shown this year Together, we
the Paris Agreement and climate- LeasePlan’s own employee fleet will LeasePlan leadership team, selecting have achieved so much I would also like
related Sustainable Development transition to an electric vehicle fleet the best talent from within the to thank our customers, suppliers and
Goals To help us hit this target, in by 2021 company, complemented by external investors for their trust and cooperation
September, LeasePlan became a experts We also initiated a rigorous For my own part, I am proud to be
founding partner of EV100, a new LeasePlan has big plans for the future, succession planning process to build leading such a great company at such
global business initiative designed but these cannot be achieved without a pipeline of great people, who will an exciting and dynamic time in its
to fast-track the uptake of electric the help of our people Indeed, it is be promoted to bigger roles or special history, and look forward to contributing
vehicles and infrastructure among large our belief that ‘you cannot grow a assignments as appropriate to What’s next
global corporations, launched by The business; you can only grow people
Climate Group around the UN General who grow businesses’ This is true now Beyond the level of the individual,
Assembly We were also delighted to more than ever: in a highly competitive we also took steps to strengthen the
announce our own electric vehicle pilot and disruptive digital environment, LeasePlan culture in 2017 and build an
proposition for large corporates at it is our people that will make the organisation equipped to deliver ‘any
the UN Climate Change Conference difference between winning or losing, car, anytime, anywhere’ LeasePlan
in Bonn, Germany, in November 2017 and to delivering our vision of ‘any has always had a culture of care, Tex Gunning
And – in a significant signal that we car, anytime, anywhere’ In 2017, we accountability and hard work It is this CEO, LeasePlan Corporation N V
are committed to leading by example therefore made a number of significant culture that will underpin our success in Amsterdam, the Netherlands