Ayvens (AYV) H1 2024 earnings summary

Executive summary

• Q2 2024 delivered net income group share of €189 million, stable versus Q1 but down 22.9% year-over-year, with return on tangible equity at 9.6%.

• LeasePlan integration advanced with legal and IT consolidation in key countries, rebranding in 20 entities, and €27 million in Q2 synergies, totaling €47 million year-to-date.

• Earning assets rose 9.5% year-over-year to €53.2 billion, driven by higher car prices and EV transition.

• Focus on managing EV transition through dedicated frameworks, longer contract durations, and robust remarketing strategies.

Financial highlights

• Margins improved to 539 bps of earning assets, up 17 bps from Q1 2024; leasing & services margins at €693 million, down 1.9% sequentially.

• Underlying used car sales profit per unit at €1,480, slightly down from Q1 but in line with normalization.

• Cost-to-income ratio improved to 61.9% for the quarter, down from 67.7% in Q1 2024.

• Net income group share after restatement reached €196 million, up €17 million from Q1.

• Operating expenses rose 27.9% year-over-year to €475 million; cost/income ratio (excl. UCS) at 68.6%.

Outlook and guidance

• On track to achieve €120 million pre-tax synergies for 2024, with €47 million delivered in H1.

• Expectation to keep margins flat as a minimum in 2025, with plans to reignite fleet growth.

• Underlying H1 2024 cost-income ratio at 64.7%, at the low end of full-year guidance (65%-67%).

• Anticipate slight fleet depletion for the rest of 2024, aiming for flat or slight growth in 2025.

• Continued focus on cost discipline, IT integration, and prudent EV asset management.