european leasingmarket 2006

8/7/2019 European Leasingmarket 2006

1/56

A Closer Look at Trends inA Closer Look at Trends in

Europe & BeyondEurope & Beyond

AlainAlain VervaetVervaetCEO, ING Lease HoldingCEO, ING Lease Holding

Edinburgh, 1 October 2007Edinburgh, 1 October 2007


2/56

A Closer Look at Trends inA Closer Look at Trends in

Europe & BeyondEurope & Beyond

AgendaAgenda

World markets in 2006World markets in 2006

Leasing volumes and growth, in EuropeLeasing volumes and growth, in Europe

and further a fieldand further a fieldLeasingsLeasings contribution to the economycontribution to the economy

Market playersMarket playersAsset typesAsset types

ConclusionConclusion


3/56

World Markets in 2006World Markets in 2006

US

ELFA

175.2 bio

Europe

Leaseurope

297.5 bio

of which:

EquipmentLeasing

250.7 bio

Japan

JLA

53.5 bio

Australia

AELA

17.2 bio

New leasing volumes; source: Leaseurope 2006 Annual Survey and local leasing associations

Brazil

ABEL

7.2 bio

Canada

CFLA

18.5 bio


4/56

0

50

100

150

200

250

300

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Billions

of

85.5

bio

New Leasing Volumes in EuropeNew Leasing Volumes in Europe

Total New Leasing Volumes Reportedin Leaseurope Annual Surveys

HP explicitly included from 2003, automotive long term rental members figures included (when available) in 2006

CAGR: 10.9%

297.5bio


5/56


Equipment & Real Estate

0

50,000

100,000

150,000

200,000

250,000

300,000

1994 1996 1998 2000 2002 2004 2006

Billions

of

Equipment Real Estate

CAGR: 10.63%

CAGR: 11.01%

RE 46.8 bio

Equip 250.7 bio

New Volumes2006


6/56


Equipment & Real Estate

0

50,000

100,000

150,000

200,000

250,000

300,000

1994 1996 1998 2000 2002 2004 2006

Billions

of


Average Share

of RE

83.84%

Average Share

of Equip

83.84%

86.7%

80.3%High:

97

Low:02


7/56


UKUK 55.0 bio55.0 bio

New Leasing Volumes per Cluster in 2006


8/56



GermanyGermany 50.4bio50.4bio



9/56



GermanyGermany 50.4bio50.4bioItalyItaly 48.1 bio48.1 bio



10/56




FranceFrance 36.1 bio36.1 bio



11/56





CEECEE 33.4 bio33.4 bio



12/56




ItalyItaly 48.1 bio48.1 bio



Benelux, CH, ATBenelux, CH, AT 28.8 bio28.8 bio



13/56








MedMed 28.8 bio28.8 bio



14/56








MedMed 28.8 bio28.8 bio

NordicNordic

18.1 bio18.1 bio



15/56

Growth in EuropeGrowth in Europe

Total New Volumes: Annual Growth Rates

Calculated based on a homogenous sample of members reporting in the previous year

10.66%

12.84%

11.69%

15.24%

16.50%

7.92%

11.62%

2.71%

8.35%

7.23%

13.47%

6.89%

2%

4%

6%

8%

10%

12%

14%

16%

18%

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

2006:

Lower RE growth

CAGR: 10.9%


16/56

2,58%

-2,50%

4,33%

8,94%

13,61%

3,57%

38,62%

6,87%

-5% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Germany

UK

France

Italy

Mediterranean

Benelux, AT & CH

CEE

Nordic

2004/2005 2005/2006


New Leasing Volume Growth per Cluster

Annual growth rates calculated based on a homogenous sample of members reporting in the previous year


17/56


Total Equipment Leasing Growth


15.29%

2.49%

7.20%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Equipment

CAGR: 11.01%


18/56


Equipment vs Real Estate Leasing Growth


30.04%

-8.73%

5.61%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006


CAGR: 10.63%


19/56

15.64%

-12.55%

8.37%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Europe US


Equipment Leasing Growth inEurope Compared to the US

Annual real growth rates, US data source: ELFA


20/56

-10.02%

9.94%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Europe US Japan


Equipment Leasing Growth in EuropeCompared to the US and Japan

Annual real growth rates, Japan data source: World Leasing Yearbook 2007 & JLA


21/56

-7.39%

27.65%

3.61%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Europe US Japan Australia


Equipment Leasing Growth in EuropeCompared to the US, Japan & Australia

Annual real growth rates, Australian data source: AELA, includes all types of equipment finance


22/56

Contribution to theContribution to the

European EconomyEuropean Economy

0,00%

0,50%

1,00%

1,50%

2,00%

2,50%

3,00%

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Leasing Volumes as a % of GDP

Leaseurope average, calculated as new leasing volumes from Leaseurope Annual Surveys divided by GDP fromEurostat for countries with available data


23/56



-5%

0%

5%

10%

15%

20%

25%

30%

-5% 0% 5% 10% 15% 20% 25% 30% 35%

New leasing growth 05/06

Investmentg

rowth05/06

DK

UKSE

DE FR AT

BE FI NL

ITCH

CZ

ES

SI

PT

SK

EE

Leasing Growth Compared toInvestment Growth

Investment = GFCF investment in private dwellings; source: Eurostat


24/56


European EconomyEuropean EconomyLeasing Growth Compared to

Investment Growth


-5%

0%

5%

10%

15%

20%

25%

30%

-5% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70%


Investmentg

rowth05/06

PL


25/56

R2

= 0.3015

-5%

0%

5%

10%

15%

20%

25%

30%

-5% 0% 5% 10% 15% 20% 25% 30% 35%


Investmentg

rowth05/06



DK

UKSE

DE FR AT

BE FI NL

ITCH

CZ

ES

SI

PT

SK

EE

Leasing Growth Compared toInvestment Growth



26/56

0%

5%

10%

15%

20%

25%

30%

AT BE C H CZ DE DK EE ES FI FR HU IT NL NO P L PT SE SI SK UK

GFCF New Leasing Vol


European EconomyEuropean EconomyCAGR (97-06) for Leasing Compared to Investment


OverallCAGR: 8.94%

OverallCAGR: 4.82% 25%> 25%

Country Level Penetration Rates(2006)


34/56

LeasingLeasing PenetrationPenetration

16.06%17.67% 17.35%

20.23% 21.64%

24.30%

28.43%

31.00% 31.00%33.10%

28.90%27.60% 27.70%

27.70%

4%

9%

14%

19%

24%

29%

34%

39%

2000 2001 2002 2003 2004 2005 2006

Europe US

Average Leasing Penetration in Europe vs US

Source: ELFA


35/56

16.06%17.67% 17.35%

20.23%

24.30%

28.43%

24.90% 25.90%

21.64%

22.90%

4%

9%

14%

19%

24%

29%

34%

39%

2000 2001 2002 2003 2004 2005 2006

Europe US Canada


Source: CFLA

Average Leasing Penetration in Europe vs Canada


36/56

16.06%17.67% 17.35%

20.23%

24.30%

28.43%

38.98% 38.35%

41.82%

36.41%

33.91%

37.43%39.32%

21.64%

4%

9%

14%

19%

24%

29%

34%

39%

2000 2001 2002 2003 2004 2005 2006

Europe US Canada Australia


Average Leasing Penetration in Europe vs Australia

Source: AELA


37/56

EuropeanEuropean MarketMarket PlayersPlayers

Based on homogenous sample of members reporting in all surveys, measured in terms of number of firms

Short Term Evolution in Leasing Company Profile

32%

18%

28%

4%

33%

18%

27%

4%

31%

14%

32%

4%

30%

18%

29%

5%

30%

16%

34%

4%

29%

16%

37%

5%

29%

16%

37%

5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2006200520042003200220012000

Indep Captive Bank Owned Bank


38/56

32%

18%

28%

4%

33%

18%

27%

4%

31%

14%

32%

4%

30%

18%

29%

5%

30%

16%

34%

4%

29%

16%

37%

5%

29%

16%

37%

5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2006200520042003200220012000






39/56

32%

18%

28%

4%

33%

18%

27%

4%

31%

14%

32%

4%

30%

18%

29%

5%

30%

16%

34%

4%

29%

16%

37%

5%

29%

16%

37%

5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2006200520042003200220012000





2006:

Bank Related: 42%

Captive: 16%

Independent: 28%

2000:

Bank Related: 33%

Captive: 18%

Independent: 32%


40/56

0

10

20

30

40

50

0% 10% 20% 30% 40% 50% 60%

2001 Ref Line


% of tot market

#offirms

Concentration of European Leasing Companies


41/56

0

10

20

30

40

50

0% 10% 20% 30% 40% 50% 60%

2001 2003


% of tot market

#offirms



42/56

0

10

20

30

40

50

0% 10% 20% 30% 40% 50% 60%

2001 2003 2005


% of tot market

#offirms



43/56

0

10

20

30

40

50

0% 10% 20% 30% 40% 50% 60%

2001 2003 2005 2006


% of tot market

#offirms



44/56

Types of Asset on LeaseTypes of Asset on Lease

47.9 bil

16%

101.7 bil

34%

46.8 bil

16%

101.1 bil

34%

Cars

RECVs

NonAuto

Equip

Source: Leaseurope 2006 Annual Survey. Includes data for Leaseuropes new automotive long term rentalmembers (when available)

New Leasing Volumes per Asset Category (2006)

50% 50%


45/56

Equipment LeasingEquipment Leasing

8%

41%

6%

5%

21%

19%

Computers & Business Machines

Road Transport Vehicles

Passenger Cars

Machinery & Industrial Equip

Other

Ships, Rail, Plane, etc

New Equipment Leasing Volumes per AssetCategory (2006)

TotalEquipment

Volume:

250.7 bil


46/56

0%

10%

20%


8%

41%

6%5%

21%

19%



Passenger Cars


Other


Asset Share 06Category

Growth 05/06

Growth calculated based on a homogenous sample of members reporting in the previous year

E i L i


47/56

0%

10%

20%


8%

41%

6%5%

21%

19%



Passenger Cars


Other



16.25

Computers &

BusinessMachines 3.23

Road

TransportVehicles

17.54

PassengerCars

2.73

Ships, Rail,

Plane, etc

8.78

Category Growth 05/06Asset Share 06

E i L iE i t L i


48/56

0%

10%

20%

0%

10%

20%


RoadTransportVehicles


16.25

Computers &

BusinessMachines 3.23

17.54PassengerCars

2.73

Ships, Rail,Plane, etc

8.78

Ships, Rail,Plane, etc23.34


6.97

Computers &BusinessMachines 3.10

18.38RoadTransportVehicles

9.02

Passenger

Cars

Growth calculated based on a homogenous sample of members reporting in the previous year

Category Growth 04/05Category Growth 05/06

E i t L iE i t L i


49/56

Benelux, AT & CH

14%

9%

16%

53%

4%4%

Nordic

19%

13%

23%

34%

2%8%




Germany

15%

9%

15%

49%

3%

9%

UK

12%

11%

13%

49%

10%

5%

France

24%

11%

24%

38%

1%

Italy

48%

4%

18%

19%

11%

Mediterranean

28%

3%

21%

30%

13%

5%

CEE

25%

2%

31%

33%

4%4%

Other Types of Equip

Ships, Plane, Rail, etc

Passenger Cars


Cluster Specialisation (2006)

E i t L iE i t L i


50/56


29%

44%

4%

16%

27%

44%

5%

15%

27%

45%

5%

16%

22%

47%

4%

16%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2006 2005 2004 2003

ConsumersConsumers

Public SectorPublic Sector

ServicesServices

Industry &Industry &

ConstructionConstruction

Agriculture, Forestry,Agriculture, Forestry,FishingFishing

Other client categoriesOther client categories

Short Term Evolution of Client Categories

R l E t t L iR l E t t L i g


51/56

Real Estate LeasingReal Estate Leasing

Cluster Specialisation (2006)Germany

85%

15%

UK

99%

1%

France

86%

14%

Italy

51%49%

Mediterranean

79%

21%

Benelux, AT & CH

94%

6%

CEE

92%

8%

Nordic

99%

1%


R l E t t L iReal Estate Leasing


52/56

Real Estate LeasingReal Estate Leasing

OfficeOffice

BuildingsBuildings

26%

Hotels &Hotels &

LeisureLeisure

7%

UtilitiesUtilities

2%

OtherOtherBuildingsBuildings

14%

IndustrialIndustrial

BuildingsBuildings

28% RetailRetailOutletsOutlets

28%

Type of Building Leased in 2006

Total RealEstate

Volume:

46.8 bil

Focus on VehiclesFocus on Vehicles


53/56

All# (mil) 12,3 2,1 1,5 15,9

(bil) 256,3 40,5 60,2 357,0

Portfolio/fleet

Focus on VehiclesFocus on Vehicles

In 2006, new Leaseurope membership base bringsIn 2006, new Leaseurope membership base brings

additional weight in the automotive sectoradditional weight in the automotive sector

All

# (mil) 6,2 0,9 0,7 7,7 (bil) 115,4 21,4 27,9 164,7

Vehicles financed/purchased

Based on figures reported in the 2006 Annual Survey & Leaseurope estimates; includes figures from short termrental associations except for fleet value ()

Passenger CarsPassenger Cars


54/56

0%

10%

20%

30%

40%

50%

60%

70%

AT BE CH CZ DE DK ES FI FR GR HU IT LU NL NO PL PT SE SI SK UK


Leaseurope PCs as % of New RegistrationsLeaseurope PCs as % of New Registrations

New cars bought or financed (used cars excluded, all product types together) compared to new PC registrationstaken from ACEA

LeaseuropeAverage:

35.5%



55/56

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

AT BE CY CZ DE DK EE ES FI FR GR HU IT LT LU LV NL PL PT SL SK UK


Leaseurope PC Fleet as % of Country FleetLeaseurope PC Fleet as % of Country Fleet

Leaseurope fleet 06 as share of total fleet (05) taken from ECs EU Energy & Transport in Figures

LeaseuropeAverage:

6.5%


56/56

A Closer Look at Trends inA Closer Look at Trends inEurope & BeyondEurope & Beyond

AlainAlain VervaetVervaetCEO, ING Lease HoldingCEO, ING Lease Holding

Edinburgh, 1 October 2007Edinburgh, 1 October 2007

european leasingmarket 2006

Documents