Transcript PowerPoint-esitys

Review of the leasing market
and prospects for development
Where next for leasing industry in Europe
Jukka Salonen
CEO Nordea Finance
16/05/2013
• Agenda
• Dawn of end or end of dawn?
• Who are we?
• Innovation or reinvention?
2•
• 16/05/2013
Leasing is underperforming …
25%
(23,0 %)
25%
Leaseurope
penetration (right)
(18,5 %)
15%
20%
5%
15%
Down Drivers
-5%
10%
•
•
•
•
% YoY
Financial crisis
Recession
Regulation
Banking groups’
strategies
• Unclear position
-15%
-25%
5%
0%
-35%
-5%
2002
2003
2004
2005
2006
2007
GDP Growth (Euroarea)
Equipment Leasing New Business
2008
2009
2010
2011
2012P
Corporate Lending
Leaseurope penetration
Source: Leaseurope, Nordea Markets
3•
• 16/05/2013
… potential is out there
25%
(23,0 %)
25%
Leaseurope
penetration (right)
(18,5 %)
15%
20%
54bn€
5%
15%
-5%
10%
% YoY
Up Drivers to sell 280bn€ not
226bn€
• Need for economic growth
• Low RWAs – low risk
• Innovation
-15%
-25%
5%
0%
-35%
-5%
2002
2003
2004
2005
2006
2007
GDP Growth (Euroarea)
Equipment Leasing New Business
2008
2009
2010
2011
2012P
Corporate Lending
Leaseurope penetration
Source: Leaseurope, Nordea Markets
4•
• 16/05/2013
Dawn of the end ?
Or end of the dawn?
5•
• 16/05/2013
• Agenda
• Dawn of end or end of dawn?
• Who are we?
• Innovation or reinvention?
6•
• 16/05/2013
Who are we?
Finance
Product
Service
Industry
7•
• 16/05/2013
Business models for different type of players
Business model
Key requirement
Service elements
Bank product unit
Cost efficiency
Basic
Bank owned multi
asset specialist
Outstanding
profitability
Service integrator
Global captive
Value for
manufacturers sales
Integrated branded
offering
Independent niche
player
Specialisation
Based on service
8•
• 16/05/2013
Leasing – a product providing finance
Threat of new entrants
Suppliers
Capital and funding
sources
IT & consulting
Industry competitors
Bank product units
Captives, Independent
Buyers
- Lessees
- Manufacturers ,
Vendors and Brokers
Bargaining power of buyers
Bargaining power of suppliers
Potential entrants
Global actors expanding their
scope
Subsitues
Banking loan
Cash
Threat of substitute solutions
9•
• 16/05/2013
Change the angle
From Finance to Services
Delivery of Asset
Use of Asset
10 •
• 16/05/2013
Leasing – an Industry providing Services
Threat of new entrants
Potential entrants
Global actors expanding their
scope
Suppliers
Capital and funding
sources
IT & consulting
Industry competitors
Bank product units
Captives, Independent
Buyers
- Lessees
- Manufacturers ,
Vendors and Brokers
- Asset and service
suppliers
- Manufacturers and
vendors
Multi asset specialist
Service providers
- Asset users
- Service users
Bargaining power of buyers
Bargaining power of suppliers
New players – e.g. Google,
Amazon, Apple, Telecom
Subsitues
Banking loan
Cash
Peer-to-peer borrowing
Service packages
User pools
Threat of substitute solutions
11 •
• 16/05/2013
Finance Product vs. Service Industry
Value proposition: Ease of deliver and use
Trend: Banks consolidating their leasing companies
to be product units, cutting down funding
Trend: Large customer databases used for offering finance.
Service demand, e.g. Mobility, Communication
Customer relationship: Core clients
Customer relationship: Integrated value chain
Distribution: Own network
Distribution: Digital and global with specialised sales
forces
Source of innovation : Cost & productivity
Source of innovation : Need and value based
Relative buyer benefit
High
Low
Relative buyer benefit
High
Low
Value proposition: Alternative finance product, usage
of collateral
High
Relative cost
Low
High
Relative cost
Low
12 •
• 16/05/2013
• Agenda
• Dawn of end or end of dawn?
• Who are we?
• Innovation or reinvention?
13 •
• 16/05/2013
Innovation – Finance Product
Profitability
 Income
•
Revenue models
 Cost
•
Operating models
 Risk
•
Value
creation
Access to
sustainable
position
 Products
•
IT-systems
 Concepts
•
Operating models
 Human Resources
Portfolio management
•
Talent management
14 •
• 16/05/2013
Reinvention – Service Industry
Needs
 Delivery of asset
•
Value chains
 Use of asset
•
•
•
Mobility
Communication
Daily life
 Environment
•
Recycling
Solution
Profitable
Growth
 Logistics
•
Networks
 Digitalisation
•
ICT
 Image
•
Branding
 Investors
•
Value
15 •
• 16/05/2013
The Future is out there…
16 •
• 10/04/2013
Review of the leasing market
and prospects for development
Where next for leasing industry in Europe
Jukka Salonen
CEO Nordea Finance
16/05/2013