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06Feb

ANNUAL FINANCIAL INFORMATION ALD reports full year 2019 results

ANNUAL FINANCIAL INFORMATION  ALD reports full year 2019 results
  • CONSISTENTLY DELIVERING ON OPERATING AND FINANCIAL GUIDANCE
  • FUNDED FLEET SHOWING STRONG DYNAMICS AT +7.0%
  • RECORD LOW COST/INCOME RATIO (EXCL. CAR SALES RESULT) OF 49.0%
  • RESILIENT CAR SALES RESULT PER UNIT AT EUR 254
  • NET INCOME (GROUP SHARE) UP BY 1.5% AT EUR 564.2 MILLION
  • EPS[1] AT EUR 1.40
  • PROPOSED 2019 DIVIDEND OF EUR 0.63 PER SHARE UP FROM EUR 0.58 IN 2018


2019 Results highlights

  • Total Fleet 1.76 million vehicles managed worldwide at end Dec 19, including more than 150K electric and hybrid vehicles
  • Gross Operating Income at EUR 1,371.4 million, up 2.1% vs. 2018
  • Leasing Contract and Services Margins up 4.5% in a context of progressive repricing of diesel residual values
  • Car Sales Result per unit comfortably in upper part of EUR 100-300 guidance; Car Sales Result at EUR 75.0 million
  • Operating Expenses growth contained at 2.8%, leading to further improvement in Cost/Income Ratio (excl. Car Sales Result) at 49.0%, in line with the c. 49% guidance and down from 49.8% in 2018
  • Net Income (Group share) at EUR 564.2 million in 2019, up 1.5% vs. 2018
  • Earnings per share[2]at EUR 1.40, vs. EUR 1.37 in 2018
  • Proposed dividend of EUR 0.63 per share, corresponding to a payout ratio of 45%
  • ROE[3]  at 14.8%
  • Total Equity/Asset ratio at 15.7%, within 15-17% guidance range


Guidance for 2020

  • Total Fleet growth (organic) of 5 to 7% versus 2019, plus bolt-on acquisitions as opportunities arise
  • Car Sales Result per unit to average between EUR 100 and EUR 300
  • Cost/Income (excluding Car Sales Result) ratio to improve by at least 0.5 percentage point
  • Payout ratio between 40 and 50%


On 6 February 2020, Mike Masterson, ALD CEO, commenting on the FY 2019 Group Results, stated:

“2019 was another year of strong commercial performance for ALD, demonstrating the enduring strength of our business model and franchise. In line with our objective to promote sustainable growth, we are leading the market in the energy transition. The rebalancing of the powertrain mix of our fleet has accelerated again in 2019. The quality of our services continues to be recognised by our clients and our partners and is backed by the substantial resources we allocate to technology. This investment ensures we maintain our competitiveness and efficiency and enables us to develop new digital tools and mobility services for our clients. Our operating and financial achievements in 2019 demonstrate ALD’s enduring focus on consistent delivery of the guidance provided to the market and highlights again the value of our best-in-class operating efficiency. I am confident that 2020 will repeat this pattern and that we will continue to lead the market. ALD will be providing an update on its business strategy during an Investor Day to be organised later this year.”


Read the PR

 


*The Group’s unaudited consolidated results as at 31 December 2019 were examined by the Board of Directors, chaired by Philippe Heim, on 5 February 2020. The audit procedures carried out by the Statutory Auditors on the consolidated financial statements are in progress.

 

[1]  Diluted Earnings per share, calculated according to IAS33. Basic EPS for 2019 at EUR 1.40

[2] Diluted Earnings per share, calculated according to IAS33. Basic EPS for 2019 at EUR 1.40

[3] ROE: Return on Equity | See definition note 2, page 11