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A strategic vision for

operational leasing business2009 October 5th Gianluca SOMA - CEO - ALD Automotive

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1. Operational leasing amidst the crisis

2. Trends on corporate mobility2.1 Trends on market demand

2.2 Trends on market offer

3. A way to the future3.1 Industry SWOT

3.2 Expectations 2015

3.3 New role for market players

3.4 New product offering

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Business metricsUsed car sale prices New orders

Ja 08 Ap 08 Ju 08 Oc 08 Ja 09 Ap 09 Ju 09 Ja 08 Ap 08 Ju 08 Oc 08 Ja 09 Ap 09 Ju 09

Contract extensions New deliveries

Ja 08 Ap 08 Ju 08 Oc 08 Ja 09 Ap 09 Ju 09 Ja 08 Ap 08 Ju 08 Oc 08 Ja 09 Ap 09 Ju 09

Consequences of the crisis

Fall in used car sale prices

Industry reaction Propose contract extensions

Where are we today ?

Drop of orders

Drop of deliveries

Slight signs of improvements

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Resulting structural adjustments

Progressive reduction of yearly mileage and extension

of contract duration

Reduction of maintenance costs

Selection of economical cars (engine downsizing) Development of insurance penetration

Multi-channelling for remarketing

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1. Operational leasing amidst the crisis

2. Trends on corporate mobility2.1 Trends on market demand

2.2 Trends on market offer

3. A way to the future3.1 Industry SWOT

3.2 Expectations 2015

3.3 New role for market players

3.4 New product offering

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Trend on corporate mobility - market demand

Retail sales decline Taxation changesSMEs growing interestin operational leasing

+ ++

Fleet sales stability Fuel price volatilityGrowing demand for

packaged clean mobility

Rise in fleet market shareDemand for ecological cars(Size & engine downsizing)

Growth potential in SME& consumer segments

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Trend on corporate mobility - market offer

Sales channel ondomestic & core markets

+

Cross subsidies from

manufacturers (?)

Vehicle + service

package offering

OEMs & captives

Liquidity crisis& government subsidies

Taxation changes(Taxes, CO2)

Low registrations, rebates

& used car market drop

Used car market impact

(Finland, NL, France, W-Eu)

UCS loss, RV reduction

& contract extension

Risk management &

re-marketing investments

Lower profitability Leasing rates adjustments

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1. Operational leasing amidst the crisis

2. Trends on corporate mobility2.1 Trends on market demand

2.2 Trends on market offer

3. A way to the future3.1 Industry SWOT

3.2 Expectations 2015

3.3 New role for market players

3.4 New product offering

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Industry SWOTStrengths

Outsourcing benefits (cost driven

offering)

Response to mobility evolutions

Global presence & economy ofscale

Economy upturn & corporate cars

need

New mobility needs

New market segments

Supply demand of new cars (?)

Opportunities

Weaknesses

Residual Value exposure

Car dependant product Authority of operating lease

industry

Capital intensive business

Funding cost volatility

IFRS new rules

New automotive distributionscheme (BER)

Supply demand of used cars (?)

Manufacturers & governmentenvironmental policies (taxes)

Threats

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Expectations 2015 from a double-digit growth toMature countries BRIC & emerging

Leasing market still shrinking (today -30%)

Concentration of players, reallocation ofmarket shares

Used car market improving 2nd semester

Car mix evolving (no revolution)

Leasing market recovering

Credit risk alert

Used car market recovering

New vehicles offering

Leasing market stabilizing

Return to profitability

Used car market stabilizing

New market segments developing

Leasing market growth (one-digit)

Product offering adaptation

China : anticipation of new vehiclefleet mix (?)

Leasing market back to growth (one-digit)

Right level of profitability vs riskmanagement

Significant mix evolution

Consumer market start

Double-digit growth

Used car market structuring

2010

2011

2012-

2015

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New role for market players

Multi modal mobility providers (road, rail, air)

Captive re-focalisation

Partners for OEMs in product specification & tuning

Risk management experts

Asset management experts

Re-marketing experts (partnerships ?) System integrator & business application provider

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New product offering : 2 scenariiEnterprises Consumers / enterprises

Price increase

Elimination ofrisk premium

Mutual appetite for

open-end products

Intelligent fleet mix

+ +

Clean mobility trend &changing culture

Mobility package offers

Price increase may generatecustomers interest in

Open-end products

Growing expertise in leasingindustry could favour

Multi modal packaged mobility

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Thank you