Transcript agenda - ic|energy

OPPORTUNITIES OF
OPERATIONAL LEASING ON
INTERNATIONAL & REGIONAL
LEVEL - EXAMPLE OF CZECH
REPUBLIC
THOMAS SCHROEDER
MILAN PTACNIK
PRAGUE FEBRUARY 1-3, 2012
AGENDA
 About LeasePlan
 Fleet Decision Making Process
 International Fleet Management
Challenges & Solutions
 Fleet Financing
 Fleet Policy
 Example of a local solution
 LeasePlan Czech Republlic
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ABOUT LEASEPLAN
Global market leader in fleet
and vehicle management
 Founded in 1963 in The Netherlands
 Owned by a consortium of :
 Volkswagen Bank GmbH (50%
 Fleet Investments B.V. (50%)
 Global presence with offices in 30 countries
 1.3 million cars managed
 Well-diversified corporate customer base
 Manufacturer independent
 Universal banking license, supervised by the
Dutch Central Bank
 Proven track record in managing risk
AGENDA
 About LeasePlan
 Fleet Decision Making Process
 International Fleet Management
Challenges & Solutions
 Fleet Financing
 Fleet Policy
 Example of a local solution
 LeasePlan Czech Republlic
PAGE 4
FLEET DECISION MAKING PROCESS
WHERE ARE THE DECISIONS BEING MADE?
Source: Fleet Market Research 2011, ConsultPlus
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IN WHICH COUNTRY IS THE DECISION MAKER
POSITIONED?
Source: Fleet Market Research 2011, ConsultPlus
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WHICH DEPARTMENT IS IN THE LEAD OF FLEET
MANAGEMENT
Source: Fleet Market Research 2011, ConsultPlus
Note: 30% of the time the person in charge of Fleet is also responsible for Travel within the company.
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STRATEGIC & OPERATIONAL DECISION FLOW
HQ Fleet
Management
Company
Int’l Agreement / Services / SLA
HQ Company
Communication
Int’l Procurement
Manager / Fleet
Manager etc.
Strategic Reviews / Fleet Control / Consultancy
OpCo Fleet
Management
Company
Operational Account Reviews / Policies & Controls
Local Subsidiary
Communication
Invoicing & Authorisations
Quotes, Orders,
Renewals, Help
Country Fleet Manager
Policy
DRIVER
AGENDA
 About LeasePlan
 Fleet Decision Making Process
 International Fleet Management
Challenges & Solutions
 Fleet Funding
 Fleet Policy
 Example of a local solution
 LeasePlan Czech Republlic
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CHALLENGES & SOLUTIONS
ECONOMY
 EUROPE – Again recession
 Significant financial issues in a
number of countries putting the Euro
under pressure
 Replacement of governments
 CENTRAL / EASTERN EUROPE –
Higher inflation
 Price growth due to weakening
currencies and a worsening
economic outlook
 Political unrest in same markets
 Commercial banks under pressure
 Funding cost are rapidly increasing
 Russia, developing market
 But modest growth in 2012
 Other markets:
 Increased governmental savings
measures
 HU/SK 10 % growth expected
 PL /RO 15% growth
CHALLENGES & SOLUTIONS
FUNDING
 CEE definitely remains a growth market
 Cost for financing rapidly increasing
 Access to funding is still limited
 Therefore cost reductions more needed than ever before
 Consolidation of the lease market is continuing
 Less local market players
 Increasing presence of global fleet management companies
CHALLENGES & SOLUTIONS
STRATEGY
 Outright purchase  Financial lease  Operational lease
 Companies are focusing on price more than before and trying
various purchasing strategies
 Changing Tax regulations
 Lease Accounting Standards (IFRS)
 Commercial car market opening up for operational lease
 Car policy subject to change
 Corporate Social Responsibility
CHALLENGES & SOLUTIONS
CAR POLICY
 Changes in company car policies
 Increased focus on cost control and cost reduction opportunities
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Dual supply ship
Pro-active fleet management
Upfront pricing and TCO
Make restrictions (German brands remain popular in CEE)
Term & mileage optimisation
 Increased focus on environmental aspects and driver behaviour
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CO2 Thresholds
Budgets including fuel
Fuel management and influencing driver behaviour
Incentives to motivate BIK drivers
Accident management and driver training
CHALLENGES & SOLUTIONS
REPORTING REQUIREMENTS
 Need for a consolidated view of your global fleet
and its development across different countries
 Need for a balanced approach to international fleet
management incorporating cost, environment and
risk related aspects
 Need for internal visibility of spend for this
‘category’, pro-actively communicate achieved
results in areas such as cost management, carbon
footprint reductions, OEM management and risk
related achievements
 Need for effective steering and guidance of local
fleet responsible
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A BEST PRACTICE SOLUTION FOR
CHALLENGING GROWTH
Key Topics
GLOBAL INITIATIVES
focus on long term opportunities
LOCAL
INITIATIVES
LOCAL
INITIATIVES
LOCAL
INITIATIVES
Country 1
Country 1
Country 1
International business leading to local growth
Best practice sharing
Manufacturer Agreements
Optimised & proven fleet policies
Best practice implementation
Channeled sourcing, various options
Optimised fuel and CO2 policy
Optimised car choice, terms and mileage
Direct driver contact
Local reporting in international reports
Use of e-business tools
Make use of beneficial tax regulation
CHALLENGES & SOLUTIONS
CONCLUSIONS
 Ongoing economic challenges
 Operational leasing is expected to grow in CEE countries
 CEE countries will benefit from Global / European leasing and
fleet maanagement contracts
 Increased focus on cost and cost reduction opportunities and
environmental aspects
 Importance of strong link to headquarter companies and
coordination of global and national initiatives
AGENDA
 About LeasePlan
 Fleet Decision Making Process
 International Fleet Management
Challenges & Solutions
 Fleet Funding
 Fleet Policy
 CSR
 Example of a local solution
 LeasePlan Czech Republlic
PAGE 17
OPERATIONAL LEASING
CZ MARKET
MILAN PTÁČNÍK, LEASEPLAN ČR
CONTENT
 CZ Car Market Overview
 Business Cars Financing Trends
 Car Volumes (by CLFA members)
 BER (Block Exemptions) Motor
Vehicle Sector
 Why Full Service Operational
Leasing?
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CZECH OPERATIONAL LEASING MARKET
CZECH CAR MARKET
 Since 2009Q2 VAT deduction allowed for PC
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CZECH OPERATIONAL LEASING MARKET
CHANGE IN CAR FINANCING FOR BUSINESS
 Operational Lease + Non banking Growth
 Tax Depretiation from 3 to 5 years (FinLease advantage disapeared)
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CZECH OPERATIONAL LEASING MARKET
CAR VOLUMES FINANCED BY CLFA MEMBERS
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CZECH OPERATIONAL LEASING MARKET
MOTOR VEHICLE SECTOR „BLOCK
EXEMPTIONS“
 Commission Regulation (EU) 1400/2002
 Car sale
 Leasing companies should be treated as the end-client but…
 Commission Regulation (EU) 461/2010 & 330/2010
 Maintenance & spare parts sale
 Client do not loose the car guarantie when using non-original spare
parts & by using maintenance providers independent on car producers
 Car make independent networks development at the Czech market
 Price sensitive clients already benefits from this regulation!
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CZECH OPERATIONAL LEASING MARKET
WHY FULL SERVICE LEASING?
 CORE BUSINESS focus and capacities
 TCO (= money) SAVINGS realized, overview, controll
 Clear and predictable CASH-FLOW
 Less financial sources allocated to company car fleet
 Invoiced instalments = tax costs
 Hassle free mobility for employee is secured
 No financial / car operability surprises
 Professional car fleet management
 Full package of services available
 Single point of contact
Note: Following comparisons are based on LeasePlan internal data sources and estimations.
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CZECH OPERATIONAL LEASING MARKET
TIME EARNED FOR CORE BUSINESS
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CZECH OPERATIONAL LEASING MARKET
TCO SAVINGS POTENTIAL
Return on invested capital / lost opportunity costs
Efficiency of the total process
Administration
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CZECH OPERATIONAL LEASING MARKET
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