ALD and LeasePlan have posted 2022 results showing strong gains in profits and fleet size as they finalise plans for integration.

The integrated business will be led by ALD’s Tim Albertsen as CEO

Despite geopolitical and macroeconomic challenges, ALD registered record financial results in its final pre-merger annual report. Net income rose 38% to €1.2bn (£1.1bn) and the total funded fleet increased 3.1% to 1.4 million vehicles while the Flex fleet rose to 78,000 vehicles. Total contracts amounted 1.8 million worldwide, up by 5.2% compared to end 2021, and full-service lease contracts reached 1.4 million.

EV penetration reached 27% of new orders – ahead of the 23% seen in the overall European new car market – and would have been higher had it not been for supply chain disruptions. Demand for electrification remains very strong, with EVs accounting for 35% of ALD’s order book, and its ALD Electric offer (including charging) is now available in 34 countries, from 22 countries a year ago.

Tim Albertsen, ALD CEO, said: “In spite of a deteriorating geopolitical and macroeconomic environment, with continued disruptions of supply chains, ALD recorded a landmark year. We generated a net result well above one billion euros for the first time in our history, confirming the solidity of our business model through the cycle and our agility in challenging situations.

“This record financial performance reflects the commitment of our employees to achieve the highest standards of service quality and to fuel business growth in new market segments with innovative products, while maintaining a strong focus on operational excellence.”

In its outlook for 2023, the leasing giant said it anticipates a gradual return to normality for supply chains, which will lead new car supply to normalise later than previously anticipated, towards the end of 2023. Against this backdrop, the favourable supply/demand situation in the used car markets is expected to remain in place in 2023.

LeasePlan integration plans finalised

ALD is also finalising its integration plan for LeasePlan, ready to deploy following an expected acquisition completion date of 31 March 2023.

The deal, announced in January 2022, will create a leading global player in mobility with a total fleet of 3.5 million vehicles.

The combined NewALD business will be led by ALD CEO Tim Albertsen and, according to the firms, will be key in moving the auto sector from ownership to usership models and zero-emission vehicles. It will also continue to accelerate towards data-driven digital transformation of the mobility industry.

ALD has now reached key milestones for the acquisition, including approvals from competition and regulatory authorities and the launch in November 2022 of a c.€1.2bn (£1.03bn) rights issue, securing the financing of the cash component of the transaction price.

Tim Albertsen added: “With our successful rights issue end of 2022, we have secured the financing of the acquisition, which we target to close on 31 March 2023, subject to all conditions precedent being met. We have also finalised our plans for an efficient integration and are now ready to welcome the LeasePlan teams and start a new chapter of our development, where the combined entity will be ideally positioned to lead the transformation of the mobility industry. Both ALD and LeasePlan teams are excited about the future ahead and fully committed to generating value for our customers and shareholders”.

Once the deal completes, ALD will become a regulated entity with the status of financial holding company and will push ahead with its integration plan, expected to bring annual cost synergies of €440m (£388.7m) by 2025. Costs related to the deal include €128m (£113.1m) booked in 2022 and an expected €150-180m (£132.5-159.0m) in 2023.

ALD has also announced the appointment of Frédéric Oudéa as a board director, which follows the resignation of Karine Destre-Bohn and seeks to strengthen the board in preparation for the integration with LeasePlan.

Tex Gunning, LeasePlan CEO

LeasePlan serviced fleet up 7.0%

LeasePlan’s 2022 results also show strong gains, in particular for electric vehicles, despite economic and automotive sector headwinds.

Its net result of €1.94bn (£1.71bn) was up 90.3% while the underlying net result rose 85.9% to €1.42bn (£1.25bn).

The serviced fleet grew 7.0% to reach 1.6 million vehicles with the Q4 2022 order book reaching a new record high.

The company also completed the divestment of LeasePlan USA to the parent company of Wheels Donlen on 1 December 2022.

EV penetration reached 32%, again outpacing the new car market as a whole.

LeasePlan also reported good progress in its transformation from an analogue business model to a digital business model, supported the deployment of its Next Generation Digital Architecture.

CEO Tex Gunning said the combined ALD and LeasePlan business will be best positioned to take full advantage of the acceleration of demand for car subscriptions.

He added: “LeasePlan celebrates its 60th anniversary this year, and all LeasePlanners can be proud of what we have achieved with the dedicated support of our shareholders, and the trust of our investors, customers and suppliers.”

• Arval also posted results this week, showing growth in both its UK and global leasing fleets and strong demand for EVs.