CZ Fleet Management in Europe

Fleet management in Europe
Growing importance in a world

of changing mobility
Fleet management in Europe |
Growing importance in a world of changing mobility
Preface 05
Relevance of fleet management 06
Key players in the fleet management market 18
Selected M&A activities of market leaders 24
Business model analysis 30
Future of Mobility and implications for fleet management 40
Strategic fields of action regarding fleet management 50
Conclusion 52
03
04
Preface
Fleet management has developed into are, and what will be the future drivers of We hope you enjoy reading our insights
a multi-billion-euro industry in Europe the corporate car market. Furthermore, and thoughts on this increasingly impor-
in recent years. More importantly, the the study names the key players in the tant segment of mobility.
fleet management business continues to industry, which main M&A activities have
grow and is gaining significant strategic recently characterized consolidation in the Sebastian Pfeifle
importance in a world of changing mobility. industry, and what implications the main Partner | Strategy & Operations
Particularly when we think about two of the trends in the automotive industry with
main trends which are most likely to sub- regard to the Future of Mobility will have Christopher Ley
stantially influence the future of the auto for fleet management. Our study concludes Senior Manager | Strategy & Operations
motive industry: firstly the trend towards with a summary of major strategic impli-
sharing instead of owning and secondly cations and respective fields of relevant Florian Tauschek
the trend towards self-driving vehicles. It actions required of the various players in Senior Consultant | Strategy & Operations
comes as no surprise that more and more the fleet management business.
OEMs are actively pursuing opportunities Philipp Enderle
in the multi-brand fleet management Although fleet management is turning Consultant | Strategy & Operations
market. more and more into a global business
and several of the largest players in the
Historically, the business was largely dom- segment are now able to offer fleet man-
inated by fleet management companies agement services globally (mostly through
fully or partially owned by large banks. And cooperation), we have chosen to focus this
today, several of the largest players still are. study exclusively on the European market.
In recent years however, several OEMs have Europe is by far the largest market for fleet
(re-)entered the multi-brand fleet manage- management globally and also in many
ment market, or substantially expanded regards the most advanced. Despite the
their operations. fact that other fleet management markets
such as North America, for example are
In this study we will explain in greater depth characterized by distinct differences as
why the strategic relevance of fleet man- compared to the European market, we
agement will continue to grow, what the believe that the major findings of our study
key characteristics of the business model will ultimately also have relevance on a
global scale.
05
Relevance of
fleet management
Today, the ability to manage and operate
fleets of multi-brand vehicles is a highly
profitable business. Tomorrow,
it will be a key capability to be successful
in the Future of Mobility.
06
07
The automotive market in Europe is charac- Historically, companies used to own their
terized by two major customer segments. company cars and manage their fleets in-
Almost all new vehicles sales are either reg- house. In recent years this has drastically
istered to private or to corporate custom- changed, with more and more companies
ers (leaving a small number of registrations buying full-service leasing contracts
for e.g., governments). Both segments and instead of vehicles to reduce fixed assets
their respective requirements have experi- and accordingly their total assets, while
enced continuous change in recent years. transferring the residual value risk of the
vehicles to external parties. In addition,
Today, nearly two out of three new cars are more and more companies outsource the
sold to the corporate channel. The majority management of their fleets to specialized
of these vehicles are registered as company companies with the aim of realizing further
cars, i.e., as corporate car pools or corpo- cost reductions.
rate fleets and this segment is therefore
called “true fleet”. Companies have vehicle A fleet management company (FMC) typi-
fleets for various reasons, of which the cally offers services over the entire life cycle
most obvious is because they are needed of a vehicle, including purchasing, financing/
for the business objective (e.g. service cars leasing, and services, as well as reselling the
or sales cars). Another important factor in vehicle on termination of the contract (see
Europe is the high relevance of employee Figure 1).
cars that are offered as a form of compen-
sation (benefit in kind). This model is rather
unique in a global perspective. The main
motives may be found in the favorable
treatment for tax purposes and also in
behavioral motives (e.g., status thinking).
Typical fleet management

service offerings cover the
entire vehicle lifetime.
08
Fig. 1 – Typical fleet management service offering
Contract
opening
Vehicle (New) vehicle

remarketing selection
Contract
Financing /
management
Leasing
Driver support Registration and

delivery
Fuel Repair,
management maintenance
and tires
Insurance
Source: Deloitte analysis
09
Fig. 2 – Average total cost of ownership for company car in Europe
2% 2%
8%
41%
12%
15%
Depreciation 20%
Fuel
Repair, maintenance, tires, and roadside assistance
Interest
Insurance
(Road) tax & fees
Management fee
Source: Global Fleet (2015)
10
From a customer perspective the total cost price environment. Furthermore, providing
of ownership (TCO) is the key to identifying fuel cards can lower fuel expenses by a few
cost saving potential and reducing operat- percentage points. FMCs also leverage their
ing expenses. Figure 2 shows a typical TCO service and maintenance network to offer
split for a European fleet vehicle. Deprecia- better prices than authorized or OEM-affil-
tion takes the largest slice over the lifetime iated repair shops, in order to reduce the
of a company car. Fuel costs make up TCO costs for FMC customers.
about 20% of the TCO while maintenance,
tires, and repair management add up to an Today, more and more companies tend
additional 15%. Interest expenses comprise to analyze and optimize the total cost of
12% of total costs. The remaining costs can mobility (TCM) rather than the TCO. While
be attributed to additional services and the TCO gives a cost calculation per vehicle,
management fees. the TCM is calculated per mobility user
(employee) and takes holistic multi-modal-
In total, only 40% of the TCO is related to the ity mobility models into account. The TCM
actual vehicle, 60% of the costs are incurred calculation considers all costs ranging from
during the use of the vehicle itself. the vehicle itself and its related costs to
other mobility options such as taxis, flights,
Fleet management companies pursue a car sharing, or rental cars.
strategy of reducing these costs for their
customers. To tackle the key cost drivers, Most recent innovative products from fleet
FMCs follow different approaches. Their management companies focus on the TCM
large purchasing volumes grant them a and offer comprehensive solutions for their
strong market power to negotiate high customers to reduce their total cost of travel
discounts with OEMs. Price reductions expenses and fleet-related costs rather
of 15–25% are quite standard. Profound than just TCO.
knowledge about residual values and
remarketing enables FMCs to achieve While doing so, fleet management compa-
higher remarketing prices for their used nies are expanding their core competencies
cars. Part of these gains is passed on to from vehicle management to total mobility
customers, helping to reduce monthly management.
charges and leading to a highly competitive
11
Europe is dominated by
the corporate channel –
new car sales are
shifting from private to
corporate.
Smartphone 79%
eher ja
47%
Tablet 44%
Fitness-Tracker eher nicht

8%
32%
Pulsuhr 5%
21% auf keinen Fall
Smart Watch 4%
Smartwatch Fitness-/
Gesundheits-Apps
12
In Europe, the corporate channel has By 2021, Deloitte forecasts a share of new Sales to corporate channel:
overtaken the private channel as the most car registrations of 37% for the private and
important one. While the overall number of 63% for the corporate channel. With total
new vehicle sales has steadily grown with registrations expected to exceed the 16
only one small decline in 2013, the split million mark, Deloitte expects more than
between private and corporate sales has 10 million new corporate car registrations
shifted in favor of the corporate channel. in Western Europe in one year for the
first time. This equals a compound annual OEM:
Overall, the private market segment share growth rate (CAGR) of 3.5% between 2016 OEM self registrations (to employees)
is declining. In 2010 the private and corpo- and 2020 or almost double the growth rate
rate market segments were almost equally of the overall European car sales market.
large in Western Europe (7.3 million private This further increase in corporate regis-
vs. 7.2 million corporate car registrations). trations implies an increasing number of
Since then there has been an increasing corporate fleets and company cars which
market shift towards more corporate car need to be managed and therefore provide
registrations. In 2016 there was already a major business opportunity for fleet Rental:
a split of 6.3 million private (42% of total management companies. Rental cars (short, medium, and long-
registrations) vs. 8.7 million corporate (58% term rental)
of total registrations) registrations. This Although the general market shift towards
increase can be mainly explained with the corporate is clear throughout Europe, there
economic recovery and growth of Western are strong regional differences between
Europe. In addition current low interest countries, resulting in different corporate
rates permit attractive financial incentives penetration rates. The differences between
(e.g., leasing) for companies to expand their the five largest European markets, Germany,
fleets. France, UK, Italy and Spain are shown in True fleet:
Figure 4. Corporate fleets with or without
full service leasing
Fig. 3 – New car registrations in Europe (EU16) in millions
17 10
16
9
15
14 8
13
Growing 7
12
commercial
11 6
business
10
~63% 5
~56% 9
8 4
7
3
6
5 2
Shrinking
4 1
private
~44% 3
business
2
~37% Total OEM & Rental
1
Total True Fleet
0
2012 2013 2014 2015 2016 2017e 2018e 2019e 2020e 2021e Total Private
Source: Deloitte analysis, Dataforce (2016), LMC (2016)

13
Fig. 4 – Overview of fleet management specifics in EU countries
Share of true
Trend of true fleet
Country True fleet registrations fleet to total
relevance
registrations
2020e 1,179,055 41%
2016 1,132,727 38%
2012 862,900 37%
2020e 991,752 29%
2016 924,305 27%
2012 831,115 25%
2020e 814,303 32%
2016 751,561 32%
2012 682,605 30%
2020e 529,159 23%
2016 430,489 23%
2012 335,028 22%
2020e 319,406 21%
2016 277,081 21%
2012 183,574 24%
Source: Deloitte analysis, Dataforce (2016), LMC (2016)
14
Description Drivers
•• Total number of new vehicle registrations is expected to •• Growth in salary sacrifice models 2
increase to 2.9M by 2020 •• Recent changes in “benefit in kinds” taxation might soften
•• Total corporate market segment (OEM & Rental + Fleet) is further corporate growth 2,3,4
expected to increase from 59% (1.3M cars) in 2012 to 63% •• Uncertainty of BREXIT negotiations might harm future
(1.8M cars) in 2020 growth in new car registrations
•• Historically leasing segment in Britain is very strong; relatively low share •• Employment growth
of OEM & rental segment
•• Total number of new vehicle registrations in Germany •• Economy and employment growth boosts further
expected to increase to 3.5M by 2020 corporate demand
•• Corporate market segment expected to increase from 63% (2.1M cars) •• High share (10–30%) of OEM self registrations5
in 2012 to 69% (2.4M cars) in 2020 •• Company car as strong status symbol commonly used
•• Germany has a high number of short term OEM self as extra incentive
registrations to sidestep recommended sales prices of OEMs and •• Company cars are tax beneficial under the one-percent-
to give discounts to end customers regulation
•• Total number of new vehicle registrations is expected to increase to •• Domestic market of large French full service leasing providers
2.5M by 2020 (Arval, ALD Automotive, PSA's “Free2Move”)
•• Corporate market segment is expected to increase from 51% •• Real disposable income expanding
(1.1M cars) in 2012 to 56% (1.4M cars) in 2020 •• Employment growth
•• French market has a strong tradition of long-term rental
(Location Longue Durée (LLD)) and short-term rental offerings
and therefore a strong rental segment
•• Total number of new vehicle registrations is expected to increase •• Economic situation still worse than before the crisis
to 2.3M by 2020 •• Only gradual economic recovery
•• Only market within the Top 5 in which private market segment outweighs •• Although Italy has the most companies (~4.3M) of the Top 5 markets,
corporate segment the majority of them (~4.1M) are below 10 FTEs and have therefore no
•• Corporate market segment is expected to decrease from 41% (600k cars) significant company car fleets6
in 2012 to 38% (900k cars) in 2020
•• Italian market has a strong tradition in rental services (e.g. due to tourism)
•• Spanish market is the smallest within EU Top 5 •• Political program (“PIVE”) to support the continued modernization
•• Total number of new vehicle registrations is expected to increase to of the nation's motor vehicle stock ongoing7,8
1.5M by 2020 •• Households are less wealthy than before recession
•• Penetration of external fleet management services within fleet registrations •• Purchasing power of households is still recovering
is high with many small and medium-sized companies active in this segment
•• Spanish market has a strong tradition in rental services
(e.g. due to tourism in particular on the Spanish islands)
15
Future drivers of the
corporate car market
Apart from the economic, demographic, and political drivers
outlined, which are mainly country-specific, Deloitte foresees two
main drivers affecting the future development of the European
corporate car market across Europe.
Accounting standards
Beginning in January 2019 the International
The European Union came to an agreement
to reduce the overall CO2 emissions by 80%
The trend towards green
Accounting Standard Board (IASB) will re- up to 2050, compared to the base year of is a ticking time bomb for
quire companies to disclose leased assets
in their balance sheets and also to recog-
1990. To achieve this ambitious goal, the EU
Commission defines, besides many other
FMCs and captives. For
nize liabilities for future rental payments. rules, also binding limit values for the CO2 these companies it will be
For company cars financed with operating
leases, this is a major change. Up to now,
emissions of new cars. Currently they are set
at 95 grams/ CO2 per kilometer by 2020. A
more and more compli
these assets and liabilities could be kept off limit which Deloitte expects to decrease to cated to find enough
the balance sheet so as to disclose a low
debt-to-equity ratio to enable easier access
~84 grams/ CO2 per kilometer by 2030 and
~56 grams/ CO2 per kilometer by 2040.10
customers for used diesel-
to funding. The change in accounting engined cars when their
standards described considerable effects
on corporate car markets.9
Furthermore, in September 2017 the
new Worldwide Harmonized Light Duty
lease contracts expire –
Vehicles Test Procedure (WLTP) will be sending their residual
Green
Apart from changes to accounting stand-
introduced.11,12 This new testing regime
was jointly developed by experts of the EU,
values on a downward
ards, there is a second major factor affect- Japan, and India to provide a more realistic slide.
ing the fleet market, driven by regulation. picture of real vehicle emission and fuel
No matter which country is selected, green consumption.
initiatives are ongoing everywhere, which
will have a considerable impact on future Vehicles which do not comply with the
corporate fleets. defined limits will be affected by driving
bans and higher taxes. As a result Deloitte
expects the share of low emission vehicles
in corporate fleets to increase sharply within
the next years.
16
Fig. 5 – Expected future development of CO2 emission limits in Europe
Gram Gasoline
- 80%
CO2 per km per 100 km
7.0
7.0
160
6.0
5.6 6.0
140
120 5.0
4.1
100
3.6 4.0
80 164
3.0
140
130 2.4
60
95 2.0
40 84
1.2
56
1.0
20
28
0 0
1990 2007 2015 2020 2030e 2040e 2050e
Source: Deloitte analysis 10,13
Deep dive – Regional Regulatory Impacts
United Kingdom: continue to enjoy the benefit of re- tuttgart.16 At the beginning of
hicles in S
Salary sacrifice is a strong driver for duced taxation. Deloitte therefore ex- May the city of Hamburg also intro-
company cars/ fleet sales due to rela- pects a sharp increase in hybrid and duced bans for two main roads in the
tively high tax incentives. The UK is dis- battery-electric vehicles in UK’s corpo- center.17
cussing the adjustment of Benefit in rate fleets.14,15
Kind (BIK) taxation, based on the new If other cities follow the role models of
WLTP, threatening company car drivers Germany: Stuttgart and Hamburg, this will have
with an increase of up to 30% in BIK. Many German cities are currently dis- enormous consequences the German
Deloitte expects that around 50% of cussing driving bans for certain inner- corporate vehicle park – currently
the 970k British employees paying BIK city areas for vehicles not meeting the ~80% of it is running on diesel. Shares
on their car will be affected by these latest Euro 6 emission standards, so as of PHEVs and hybrids as well as BEVs
planned changes. The significance of to achieve CO2 and NOX emission are expected to rise significantly in
this change for the whole corporate car standards defined by the EU. The city Germany too.18
sector in UK becomes obvious if this of Stuttgart recently went ahead and
number is put into perspective with decided to put such a ban in place
the total corporate registrations of starting in January 2018. Only diesel
1.7M in 2016. vehicles meeting Euro 6 standards
(with the exception of delivery vehicles
Only ultra-low emission vehicles with and certain craftsmen) will be allowed
emissions <75grams CO2 per km will be to enter the city center. This ban affects
excluded from these changes and will ~68% (or 73k) of all registered diesel ve-
17
Key players in the
fleet management
market
Fleet management has historically
been dominated by banks, with
OEMs now entering the market.
18
19
Historically, fleet management companies The structure of many fleet management
in Europe grew out of the banking industry. companies has changed in recent years.
Banks identified vehicle leasing as an asset- The European market leader LeasePlan,
based business model with profitable in- for example, was founded as a subsidiary
terest margins, the potential for additional of ABN Amro banking group but later
recurring service revenue, and manageable became owned in an equal joint venture
risk. In addition to banks, some OEMs grew between the German Metzler Bank and the
naturally into fleet management, evolving Volkswagen Group. In 2016, the previous
from retail leasing contracts to managing owners sold LeasePlan to a consortium
and financing large corporate fleets lever- of institutional investors led by a Dutch
aging the financial power of their captives. pension fund.19
Leading European bank-backed fleet man- In a highly consolidating market today, the
agement companies are Arval (owned by Top 5 players in Europe own more than
BNP Paribas Group) and ALD Automotive 50% of the market. Figure 6 compares the
(owned by Société Générale). Leading key players in Europe.
captive related multi-brand FMCs are
Alphabet (BMW FS) and Athlon (Daimler
FS) and most recently PSA’s “Free2Move”.
Volkswagen Leasing (VWFS) is a major
player in that field but is, despite having
recently acquired CarMobility!, currently
rather focused on its own group brands
and is therefore not analyzed in further
detail in this study.
20
Fig. 6 – Top 5 fleet management companies in Europe
Units in operation
HQ Shareholder Recent transactions
(as of 2016)
LP Group B.V., LP Group BV’s

>1,600,000 Amsterdam,
consortium of institu- acquisition of
LeasePlan (~70% in EU) Netherlands
tional investors LeasePlan Corp NV for
€3.7 billion
100% subsidiary of May 2016, ALD

>1,400,000 Clichy,
Société Générale Automotive acquired
ALD Automotive (~90% in EU) France
Group Parcours SAS for € 300
million
>1,000,000 June 2015, Arval

Rueil-Malmaison,
(>3 million with global 100% subsidiary of acquired General
Arval France
partner Element) BNP Paribas Group Electric's European
fleet business
Units in operation
HQ Shareholder Recent Transactions
(as of 2016)
September 2011, Alpha

>650,000 Unterschleißheim, 100% subsidiary of
bet acquired ING Car
Alphabet (~90% in EU) Germany BMW Group
Lease, a subsidiary of ING
Group for €637 million
July 2016, Daimler FS

>340,000 Machelen, 100% subsidiary of
acquired Athlon for
Athlon (all EU) Belgium Daimler Financial
€1.1 billion
Services AG
Source: Deloitte Analysis, mergermarket.com, Annual Reports, Company Websites

21
Strong consolidation
in last years led to 5
major players having
>50% market share
Market is consolidating Economies of scale

In the past 15 years a strong consolidation Secondly, scaling effects can be seen.
has started within the European fleet FMCs identified size as a prerequisite to
market which is still ongoing. More than 50 benefiting from economies of scale and to
acquisitions formed a concentrated market reducing their operating costs per contract.
where the Top 5 companies own more than In addition, high volumes lead to strong
50% of the total European market. purchasing power over suppliers (such as
Three main reasons in particular are driving OEMs and fuel providers).
this trend:
Investment case
Cross-border service offering matters Banks and private equity funds appreciated
The main reason for the consolidation the high profit margins and relatively low
process can be seen in the companies’ risks of fleet management business and
growth strategies. Multinational customers started to acquire FMCs as strategic invest-
demand a pan-European service coverage ment cases in times of low interest rates.
to serve their European subsidiaries and
employees with a seamless service level Ongoing consolidation
even across boarders. Strong competition As a result the independent medium-
to become the European leader in fleet sized pan-European players like Athlon or
management started a race which can Parcours have all been acquired and this
hardly be won by pure organic growth. The sub-segment has effectively vanished.
acquisition of existing companies and their The European FMC market today can be
fleets became a lever to quickly increase separated into a group of five large pan-
portfolio size, product offering and geo- European providers and a large number
graphic coverage. of fragmented domestic companies rarely
having more than 30,000 cars under
management.
22
Fig. 7 – Strong consolidation in European fleet management market
Automotive Service
HLA ARI Daimler Fleet Management
Group
ING Car Lease
LHS LeasePlan FleetLogistics

Fleetlevel
Car Professional
Athlon GE Capital
Management
Parcours
TÜV Süd
ASG
Fleet Company
Masterlease
HPI Alphabet
Arval
ALD Automotive
Deutsche Leasing
ALD Automotive Alphabet

Athlon LeasePlan
Arval
>50% of total European fleet market

managed by Top 5 players

23
Selected M&A
activities of market
leaders
Driven by the three factors outlined all Daimler Financial Services acquired a simi-
large fleet management providers have lar portfolio size as Alphabet did five years
conducted significant M&A deals in Europe earlier, the price per contract was approx-
during the last decade. imately 50% higher. Alphabet paid roughly
€ 2,917 per contract whereas Daimler had
Whereas the motivation of the captive- to pay approximately € 4,400 per contract.*
backed FMCs was mainly to leapfrog a
long period of organic growth by instantly Another example is the case of LeasePlan.
acquiring a large portfolio, the independent Volkswagen acquired LeasePlan jointly
providers selectively bought companies with other investors in 2004. VW paid
across Europe to increase their size and approximately € 1 billion for its 50% share.
geographic coverage in the respective In 2015 VW and Bankhaus Metzler sold off
markets. LeasePlan to LP Group B.V. for a total of
€ 3.7 billion. VW is expected to have re-
These ongoing M&A activities and the ceived up to € 2.2 billion or nearly double
decreasing availability of suitable targets the amount that the group paid for its
resulted in an sharp increase in respective stake roughly ten years earlier.19
transaction prices. The average price paid
per contract has doubled during the last Most recent examples show that this trend
decade. is continuing. In early 2017, Zenith was
bought by Bridgepoint Advisers Ltd. for
This price increase becomes very obvious roughly € 10,300 per contract.19
when comparing the recent acquisitions
made by OEM-affiliated FMCs. Although
24 * High level price simulation based on publicly available information

Fig. 8 – Selected transactions of Top 5 players in recent years
2011 2015 2016 2016
GE Capital
ING Car Lease Athlon Parcours
Target Fleet Service
Arval Daimler
Alphabet ALD Automotive
Buyer BNP Paribas Group Financial Services
Vehicles 240,000 164,000 250,000 61,500
Price ~ € 700M n/a ~ € 1.1B ~ € 300M
Ø per vehicle € 2,917 n/a € 4,400 € 4,878
Fig. 9 – Average amount paid per vehicle based on historical transactions
in €
10,000
8,000
6,000
€ 7,550
Target Parcours
Target Athlon
Buyer ALD Automotive
4,000 Buyer Daimler
Target ING Car Lease Financial Services
2,000 € 3,550 Buyer Alphabet
0
2006 2007 2008 2009 2010 2011 2012 2013 2016 2017 2018 2019
Size of bubble represents the volume of vehicles (UiO) involved in the transaction
Source: Deloitte analysis, mergermarket.com
25
Case Study:
The acquisition of ING Car
Lease to increase Alphabet
pays off for BMW
In particular the acquisition of ING Car Apart from pure per unit sales, Alphabet
Lease's 240,000 cars has raised Alphabet has two additional positive effects on BMW:
to a significant sales channel for BMW in
Europe with a fleet size of approximately •• Possibility of converting existing non-
630,000 of the global fleet of 690,000 cars BMW contracts into future BMW sales
being under management in Europe.20 after current contract expires
The following case study is based on
Deloitte estimations derived from publicly •• Challenge other OEMs by firstly demand-
available information and shows the rele- ing significant discounts (skimming their
vance of Alphabet for the BMW Group as a sales margin) for multi-brand cars and
sales channel: secondly routing these vehicles around
the after sales network of other competi-
Based on an average expected leasing con- tors (skimming their after sales margin)
tract duration of three years and a share
of BMW Group cars of around one-third in
Alphabet's fleet results in annual renewals
of roughly 70,000 BMW and Mini vehicles
by Alphabet customers. This implies that
Alphabet contributed to approximately
6.4% total of 1,092,000 BMW Group sales in
Europe in 2016.20
26
Strong benefits
for the core business
of the acquirer
Fig. 10 – Alphabet’s relevance as a sales channel for BMW 20
70,000
420,000 210,000
140,000
Ongoing contracts
Contract renewals
BMW Group
others
Source: Deloitte analysis, BMW (2017): Annual report 201620
27
Case Study:
Zenith Group Holdings Ltd –
object of speculation similar
to the real estate market
Established in 1989, Zenith is one of the Zenith is working in a cooperation with

UK’s largest independent leasing and fleet Santander to optimize its refinancing and
management companies. During the last 14 access Santander’s customer base.
years it was sold seven times between var-
ious well-known private equity funds. Dur- The Zenith case proves fleet management
ing this time Zenith’s portfolio increased companies to be a solid investment case
from 10,000 to 85,000 units in operation. for banks and private equity funds search-
Meanwhile, its valuation increased from € ing for opportunities with high profitability
26M in 2003 to € 878 million in 2017. and moderate risk in an environment of low
interest rates.
28
Fig. 11 – Development of the valuation of Zenith Group Holdings Ltd
P/ E 13.8x 8.7x 11.8x 25.7x n/a n/a

multiple
P/ EBIT
10.0x 8.4x 8.4x 28.9x 20.6x 24.8x
multiple
P/ vehicle 297%
multiple
(in €) 10,293 10,329
3,470 3,070
2,600 2,666
Buyer 3i Dunedin Equistone Morgan HgCapital Bridgepoint

Stanley
Source: Deloitte analysis, Zenith Group Holdings Ltd press releases
29
Business
model analysis
Fleet management has become
a service business – funding and
efficiency are key factors.
Finance
30
Insurance
Remarketing
Service
Purchase
31
Figure 12 (below) illustrates the typical Apart from financing, vehicle remarketing demand major discounts from OEMs which
main components of the value chain of a is the second largest profit contributor. are often between 15–25%. While the ma-
fleet management company and the cor About 20% of total profits are connected to jority of these discounts are passed on the
responding profit allocation. the used car remarketing process. On the clients to offer competitive monthly rates,
one hand, remarketing profits are realized the remaining discounts are counted as
Today, the core profit driver of an FMC if the used car is sold for a higher price revenue for the FMCs.
remains financing the assets. Funding and than the original forecast residual value.
leasing alone contribute about 30–35% to On the other, FMCs tend to charge their Services account for roughly 50% of the
the total profit. customers a variety of penalty fees, e.g., for total profit of an FMC. This profit is usually
small damages or for exceeding the original split across multiple services. Often FMCs
Forecasting the right residual value of the contracted mileage of the fleet car. outsource at least some of their offered
vehicle at the end of its contract is the most services to specialized third parties (Figure
crucial capability for determining monthly Purchasing plays a significant role in an 13 provides an overview of the typical ser-
payments but also to enable profit creation FMC's business. FMCs’ high order quan- vice portfolio of an FMC). In this case FMCs
when remarketing the vehicle at the end of tities usually correspond with a strong charge a handling fee on these services
the contract. purchasing power which allows them to while managing the customer contact.
Fig. 12 – Fleet management profit allocation along the value chain
Purchase Insurance Remarketing

3–6% 5–10% 14–21%
Finance Services
30–35% 40–55%
Source: Deloitte analysis21

32
Fig. 13 – At least 10 core services are typically offered by top fleet management companies
Licensing, Title & Registration Tolls & Violation Management Risk & Safety
Management of the increasingly complex Reducing administrative tasks while ensur- Driver training programs, motor vehicle
registration process ing compliance record checks, driver risk profiles
Fuel Management Tire Management Telematics

Fuel cards with discounts and systematic Winter & summer tire change, storage of Manage fleet efficiency, increase driver
detection of abuse the second set during other season productivity, lower operating costs
Maintenance Management Interim Car Management Personal Usage Management

Network of shops, certified technical Providing a replacement car in case of Track personal mileage online, real-time
advisors, 24/7 service accident or maintenance reporting, compliance with IRS
Accident Management
Repair shop assignments, provide sub
rogation services, documentation

33
Fig. 14 – Development of fleet management services towards driver-related services
Driver-
related
services
Vehicle- • Multimodality (e.g.,

related Alphaflex)
Financing- services • Corporate car sharing
related (e.g., ALD sharing)
services • Maintenance • Travel card (e.g.,
• Tires mobility card)
• Financing • Fuel card
• Leasing • Accident management
Development of fleet management services
FMCs will evolve into providers of multimodal mobility

for their customers. Their heritage, the fleet vehicle,
will just be one part of the future customer's daily
mobility journey.
Development of services As the next step, Deloitte foresees the

Historically, FMCs‘ service and product expansion of FMCs also into the area of
offering focused on financing and vehicle- in-vehicle-related services (for instance
related offerings such as leasing, repair & in vehicle multimedia offerings such as
maintenance, or tire management. Netflix or Spotify flat rates) as well as non-
vehicle-related mobility services (e.g., travel
Today, FMCs have already expanded their agency). FMCs will evolve into providers of
offering to driver-related services, e.g., fee multimodal mobility for their customers.
management or personal usage manage- Their heritage, the fleet vehicle, will just
ment. Innovative products such as corpo- be one part of the future customer's daily
rate car sharing are on the rise, focusing on mobility journey.
the needs of the driver (employee).
34
Fig. 15 – Multimodal mobility offers the future customer seamless mobility
Company car
Parking Taxi /Robo-taxi
Multimodal mobility
Charging solutions Corporate car sharing
Public transport / travel agency

Rental
E-bike /scooter
35
Fig. 16 – Financial comparison of leading European fleet management companies based on publicly available information
KPI Non-Captive Captive
Top 5 player Arval ALD

LeasePlan Alphabet Athlon
BNP Paribas Group Automotive
€ 9.2B € 7.5B € 1.6B

Revenue n/a n/a
(2016) (2016) (2015)
€ 361M € 455M € 512M € 135M

Profit n/a
(2015) (2016) (2016) (2015)
25% 14.9% 17.2%

RoE n/a n/a
(2015) (2016) (2016)
RoA 2.7% 1.9% 3.8%

n/a n/a
(2015) (2016) (2016)
Source: Deloitte analysis, annual reports, company websites
36
Fleet management – most With only one percent of the group's total
assets, ALD accounted for nearly nine
profitable business unit for percent of the bank's profits in the first half
Société Générale of 2016.22
Early in 2017 Société Générale publicly

An analysis of profitability measured by announced plans to sell a minority stake
return on equity (ROE) of the individual in ALD on the stock exchange via an initial
business units of Société Générale – public offering (IPO). The bank stated that it
France’s second largest bank – underlines will remain the controlling shareholder and
the profitability of fleet management. main funding provider of ALD.
With its fleet management business unit The money that will be raised by an IPO
ALD, the bank generates approximately is intended to fuel further growth, most
double the ROE than with its investment likely with acquisitions of competitors as
banking division. described in the previous section of this
study.22
Fleet management
is a highly profitable
business
Source: Deloitte analysis 22 37

Fig. 17 – Key success factors for fleet management
Strong funding and service Size matters – regarding footprint

mind-set as competitive advantages and fleet size
•• Fleet management is an asset finance •• Customers demand European or
business with finance income as the even global footprints from their fleet
single most important revenue stream managers
•• Cheap funding base is a competitive •• Multinational companies want to
advantage have a seamless services cross-
border
•• Business is heavily shifting towards
services demanding a service •• Economy of scale with larger fleet
mind-set size (e.g., purchasing power over
suppliers)
Able to shift from vehicle-related Multi-brand is the key to fulfilling

services to driver related-services customer requirements
•• Fleet management services are •• Europe is a historically evolved

evolving from basic financing services user-chooser market – companies
through vehicle-related services to demand a multi-brand (and multi-
services which have the driver (e.g., segment) portfolio to fulfil employee
employee) in focus aspirations
•• Multimodality offers and holistic •• Product portfolio has to range from

travel management as enablement to functional vehicles to premium cars –
cover the corporate Future of Mobility large variations in customer demand
are growth areas
38
The Future of Mobility

will be enabled by
fleet management
39
Future of Mobility
and implications for
fleet management
Deloitte’s publication “The Future of
Mobility” lays out a framework that posits
the emergence of four concurrent “future
states” emerging within the mobility eco-
system. A key factor is that all four states
are likely to co-exist across a number of
geographies (urban, suburban, and rural)
and consumer demographics to a varying
extent and, therefore, represent charac-
terizations of market segments existing in
parallel rather than alternative scenarios.
Deloitte sees a growing importance of car

and ride-sharing as well as self-driving
vehicles. For both developments, fleets and
fleet management gain greater importance
and will be a key to participating in the
prospective mobility value chain. Fleet
managers should lay the groundwork today
by enabling vehicles and infrastructure to
be prepared for the future state of seam-
less door-to-door mobility.
40
car share
41
Four states of the Future of Mobility
Fig. 18 – Future of Mobility: Changing Usage and Sales
3. The driverless revolution

3
Autonomous car
Future state 3 –
high middle 180K 20K
The driverless revolution
Future state 3 sees the wide-spread adop-

tion of autonomous vehicles, but private
ownership remains dominant. Drivers still
prefer owning their own vehicles but seek
driverless functionality for its safety and
convenience. High-price, Families Lifetime Utilization
customized consolidate vehicle miles per year
vehicles their vehicles increase increases
Vehicle control
1
1. Incremental change
Future state 1 – middle middle 151K 13K

Incremental change
A world where private ownership remains

the norm as consumers opt for the
forms of privacy, flexibility, security, and
convenience that come with owning a
Driver assist car
human-driven vehicle. While incorporating

driver-assist technologies, this future state Mixed shifts Traditional Lifetime Utilization
assumes thatfully autonomous vehicles do towards trucks, vehicles lose vehicle miles per year
not completely displace driver-controlled SUVs, sports cars, market share unchanged unchanged
vehicles at any time in the near future. trade vehicles
Personal car Vehicle ownership
42
4. A new age of accessible autonomy

4
Future state 4 –
low high >240K >70K
A new age of accessible autonomy
Future state 4 anticipates a convergence of

both the autonomous and vehicle-sharing
trends. Mobility management companies
and fleet operators offer a range of pas-
senger experiences to meet widely varied
Low-cost, Majority of Lifetime Utilization needs at differentiated price points, initially
smaller electric sales shifts to vehicle miles per year in urban areas but spreading rapidly into
pods fleet managers increase maximized suburban communities.
2. A world of car sharing

2
middle low 240K 70K Future state 2 –
A world of car sharing
Future state 2 imagines how continued

growth of ride-sharing and car sharing
may impact both companies and people.
Economic scale and increased competition
could drive the expansion of shared vehicle
Driver-driven Sales to driver- Lifetime Utilization services into new geographic territories
fleets with varied controlled fleets vehicle miles similar to today’s and more specialized customer segments.
vehicle mix decreases as AVs increase taxi fleets As shared mobility serves a greater propor-
proliferate tion of local transportation needs, it might
reduce the need for personal vehicles,
particularly in homes that have several.
Vehicle ownership Shared car
Source: Deloitte analysis 43

Generation Y
Shift from ownership to sharing will further
increase relevance of fleet management
Deloitte’s recent Global Automotive shaping an industry in which on-demand In 2006, the world reached a critical
Consumer study highlighted the fact that service providers such as Uber, DriveNow midpoint with over half of the world’s pop-
Gen Y (those born between 1977 and 1994) and car2go have experienced and are still ulation living in cities and urban areas. The
desire connectivity and convenience and experiencing significant growth and are trend is expected to accelerate, with ap-
can choose from an ever-increasing range unquestionably among the defining phe- proximately 70% of the world’s population
of transportation types, apart from vehicle nomena of our future mobility as well as expected to live in cities by 2050.
ownership, for getting from A to B. While the digital era. These providers are chang-
Baby Boomers tend to gravitate towards ing the way individuals move, by seamlessly Car sharing extends the benefits of auto-
traditional vehicle ownership models and connecting either drivers to passengers mobility to individuals without them having
younger generations are highly interested (taxi, car pooling) or passengers to cars (car to bear the cost and effort of car owner-
in models that provide access to mobility, sharing). Younger generations are leading ship. Europe accounts for about 50% of the
allow them to remain connected (and pro- the way towards pay-per-use mobility in global car sharing market and is expected
ductive) at a reduced cost. The emerging place of owning a car, nearly 50% of Gen Y to grow further to almost 16m users by
mobility patterns of (young) adults are consumers like using a smartphone app for 2020 (figure 19).
transport and already plan travel so they
can multitask.25
Fig. 19 – market development in Europe (2006–2020, in ’000)
Members Cars
in 1,000 in 1,000
15,600
16,000 180
14,000 160
140
12,000
120
10,000
9,000
100
8,000
5,800 80
6,000
60
4,000
40
2,207
2,000 212 334 20
533 692
0 0
2006 2008 2010 2012 2014 2016 2018e 2020e
Users Cars Forecast

44
Fig. 20 – Distribution of car sharing vehicles in Europe
5,800,000
11% users (in 2016)
1% 68,000
3% cars (in 2016)
1%
4%
2%
6%
5% 48%
10% 7%
2%
P
ercentage of total
European car sharing fleet
The car sharing approach does not have to In a future mobility ecosystem Deloitte
stop at a company door. In recent years a sees a growing importance of car and
growing number of FMCs started to offer ride-sharing as well as self-driving vehicles.
corporate car sharing programs. New in- For both developments, fleets and fleet
car technologies and advanced telematics management gain greater importance and
enable companies to use their corporate will be a key to participating in the prospec-
cars as a sharing asset for their employees. tive mobility value chain. Fleet managers
Key advantages are an optimized pool car should lay the groundwork today by
usage, a reduction of the carbon footprint enabling vehicles and infrastructure to be
as well as large cost saving potential in prepared for the future state of seamless
terms of TCM. door-to-door mobility.
With a high acceptance by young employ-

ees and a growing awareness of the total
cost of employee mobility, the corporate
car sharing market is expected to grow rap- Fleet management will be
idly. With a prospective fleet size of 84,000
cars by 2020, this market will reach almost the key to enabling sharing-
half the size of the conventional car sharing
market.27 based mobility services

45
From ride-hailing to robo-taxi –
autonomous revolution powered
by Blockchain
Ride-hailing Robo-taxi around the corner. Blockchain technology

With the exception of a few cities such as Especially in the ride-hailing business could enable the cars to send and receive
London and Paris, Uber, as the world’s larg- where a high percentage of the costs are money, schedule, and pay for their own
est ride-hailing provider, did not manage associated with the driver, self-driving cars maintenance meetings in times of low
to establish a significant footprint on Euro- could drastically decrease these costs. utilization, etc. Blockchain could support
pean soil. In many European jurisdictions A recent Deloitte study (“DUP: Future of making the car also autonomous on the
Uber has run into regulatory roadblocks. Mobility”) shows that about 50% of the financial side.
cost of taxis are connected with the cost of
In Europe, Uber challenges homegrown the driver.24 Self-driving robo-taxis would The future is fleet
ride-hailing competitors who have leveraged not only be cheaper than taxis today, the Several automotive companies have
their better knowledge of local market utilization of the vehicle would increase already reacted and are increasing their
dynamics to build successful businesses. distinctly. activities in the fleet management environ
Businesses such as myTaxi, founded in 2009, ment to avoid being reduced to the role
may share some similarities with the Uber This development implies a growing of hardware providers. In the end, the
model, but they differentiate themselves by number of vehicles going to fleet instead winners in this race for customer contact
working in accordance with local regulations. of to private persons. Deloitte’s study “The will be those companies who are able to
Daimler’s myTaxi has become Europe’s larg- Future of Mobility: What’s next?” predicts a provide a seamless customer experience at
est taxi-hailing provider with over 6 million share of 70% autonomous driving fleet ve- a limited cost. Blockchain can become the
customers in 2016.28 This is an astonishing hicles in an urban environment in new reg- enabling technology for automotive com-
growth from 2 million customers in 2015. istrations by 2035.29 In a connected urban panies to reach this goal and to maintain a
Other European ride-hailing services have environment the attractiveness of owning key role as the direct provider of mobility
specialized in exclusive limousine transport a car declines rapidly if one has access to a services to end customers. Deloitte has
or van/bus services. First attempts to pool of cars whenever needed.31 given further insights into this topic in a
integrate autonomous driving technology recent publication “Blockchain @ Auto
with the outlook of providing independent To guarantee a seamless operation of these Finance – How Blockchain can enable the
“robo-taxis” have been made. fully autonomous taxis a few technical issues future of mobility”.30
have to be solved. Payment is a crucial part
of that. Today, ride-hailing companies offer
cashless payments directly via their smart-
phone apps, but the next revolution is just
46
68%
Up to
would be willing
to pay extra for
autonomous driving
85%
of customers believe
in the breakthrough
of autonomous
driving
35%
Up to
of GenY–Z customers
question their need to
own a car due to use
of ride-hailing
50%
of cost for ride-
hailing is connected
to the driver
Fig. 21 – Forecast of new vehicle sales distribution (for urban areas in USA)
100%
80%
60%
40%
Shared autonomous
P
ersonally owned
20% autonomous
Shared driver-driven
0% P
ersonally owned
2015 2020e 2025e 2030e 2035e 2040e driver-driven

47
Fig. 22 – The Future of Mobility ecosystem: integrated and multi-modal inncer-city customer journey
Mobility management providers

Mobility management services combine an individual’s
specific history and current circumstances with data
from millions of others and information from different
modes of travel across the city. Using advanced analy
tics, they offer users tailored, seamless travel options.
Mobility Management Vehicles
Start
Mobile access (e)-vehicles (shared)
Fleet Management Data Management/Loyalization
OEMs / Fleet Management companies

Fleet operators store, maintain, and deploy shared
autonomous vehicles throughout the city. Vehicle
manufacturers build an array of shared self-driving
options to meet the varying needs of millions of
travelers.
48
Cyber Infrastructure /Maps
Captives / Finance companies

Mobility assets (robo-taxi, buses, bikes, …) have to be
financed – captives with their knowledge and funding
capabilities will be the natural key players for these
services.
In addition, mobile payment solutions will be the key
enabler for seamless multi-modal mobility. These ser-
vices will generate a large amount of relevant customer
data which can be used for economic purposes, i.e. for
customer loyalization programs.
In-Vehicle Experience Finance/Leasing, Payments and Insurance
Finish
Transit Hubs Subway / Light Rail Bus Bike Path/ Walkways
Parking /Maintenance Physical / Charging Infrastructure
Additional providers
The in-vehicle experience is enhanced by content pro-
viders offering a variety of options, from entertainment
to business applications, and supported by advertisers
and subscription fees.
City planners work closely with the private sector to
operate and maintain critical infrastructure, from bike
racks to train platforms or electric charging stations.
Those physical assets are increasingly smart and con-
nected, allowing constant, real-time monitoring.
Source: Deloitte analysis 49

Strategic fields of
action regarding fleet
management
Fig. 23 – Market entry rationales from the perspective of various industries
OEMs Banks Platforms / Tech Companies
•• React to sales channel shift from •• Enter in a reasonably stable, •• Enter into mobility market to
Strategic
private to corporate and prepare non-cyclical industry with recurring expand value chain
conside
for self-driving fleets revenues
rations •• Leverage mobility behavior
•• Protect the core business with •• Diversified revenue stream in times information generated by fleet
regard to sales discounts and of low interest rates based on management data for core business
after sales revenue fee-generating services (location-based services)
•• Expand the value chain with focus •• Locked-in customers based on •• Build mobility management capabil-
on services and residual value sticky customer relationships with ity to transfer to private user market
potential to up- and cross-sell within
•• Secure customer access •• Prepare foundation for a future
core business
world of autonomous shared fleets
•• Leverage full-service leasing and
to own ecosystem regarding in-car
fleet management as capability for
entertainment and apps
mobility services
•• Established dealer network •• Bank branch network as sales •• Strong knowledge in partner man-
Competitive throughout Europe and global channel agement and integration
advantage footprint
•• Access to and detailed knowledge •• Truly customer-centric mentality
•• Asset know-how regarding vehicles of small and medium entities
•• Expertise in data management and
and usage behavior
•• Strong understanding of funding analytics (telematics)
•• Holistic view of the value chain and business
•• Platform integration capability
vehicle lifetime
towards multi-modal mobility
50
Strategic recommendations
for fleet management
companies
The increasing demand for full service The key success factors in fleet manage-
leasing and associated fleet management ment of the future are diverse. It is essen-
has significantly fueled the growth and tial to build a global footprint and have the
profitability of fleet management compa- capability to provide seamless service of-
nies in recent years. This growth sparked ferings across borders. Fleet customers will
the interest of several other players such increasingly demand consulting services to
as automotive companies and banks that reduce the cost of their fleets. This can on
are (re)entering this market based on their the one hand be addressed by sophisticated
own core products, be it vehicles or leasing data and driver behavior analysis based
business. on telematics to increase efficiency. On the
other hand, innovative mobility solutions
On the other hand, platform and tech- such as corporate car sharing and similar
nology companies see this industry as can also bear the possibility of earning
the entry point for their data-driven and revenues based on the corporate fleet. In
customer-centric business models towards addition, driver-centric and non-car related
the Future of Mobility. services will be increasingly important in
the future.
Today, the fleet management companies
are still ahead in this rather complex busi- Based on these capabilities, it is a logical
ness, with the competition catching up. To step for fleet management companies to
keep that lead over the competition fleet further expand their client base towards
management companies should not rest the private channel and to be prepared
on their merits and strong financial results for the Future of Mobility where, due to
but strategically position themselves to- sharing behavior and self-driving cars
wards the future. the differences between the private and
corporate channels will become more and
more blurred.
51
Conclusion
Fleet management in Europe is a multi- The increasing customer demand for
billion-euro industry based on a profitable multi-modal integrated mobility will require
business model and the increasing shift of only a limited amount of truly integrated
new car sales towards the corporate chan- mobility platform providers. These players
nel. The top five players combined make up will be in a unique position to take owner-
for more than 50% of the managed cars. ship of customer access and data (mobility,
Current key players are predominantly payment, etc.) which will be the key to
bank-backed coming from the roots of this monetizing the mobility ecosystem.
asset-based business. Nevertheless, more
and more OEMs are putting focus on this To answer these trends requires bold strate-
market as they see an increasing relevance gic choices under uncertainty. The fields of
for their core business in a world of chang- action for current or potential future actors
ing mobility. in this environment differ depending on
their background and strategic aspiration.
The relevance of this market will further OEMs face the threat of losing ownership
increase in the future due to multiple of the customer contact and large parts of
influencing factors. The younger generation their value chain and being reduced to sole
will buy fewer cars in the future. Firstly, the providers of hardware. Fleet managers need
relevance of owning a car for social status to rethink their position as asset-managers
is strongly declining (also blurring the towards integrated mobility providers also
importance of brand perception of cars). offering services that are not necessarily
Secondly, the increasing urbanization dras- related to the vehicles. Platform providers
tically reduces the attractiveness of owning and tech companies might think about en-
a car, amongst other things due to the high tering the market top-down, leveraging their
cost and hassle associated with finding a existing customer access.
parking space alone. The increasing shift
from ownership towards usage fueled by Fleet management will be one of the key
the increasing mobility offerings and busi- capabilities to be successful in this Future
ness models especially in urban areas will of Mobility. Deloitte is ready to support you
further shift new car sales towards the cor- in deriving the necessary strategies and
porate channel. Corporates will start to see actions.
their company fleets not only as a cost but
also as a potential revenue model leverag-
ing services such as corporate car sharing.
In the further future with autonomous cars
such as robo-taxis being a reality the trend
described will further accelerate.
52
53
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differences before taking full advantages of the similarities”, 2015 organisations/office-for-low-emission-vehicles, 2017
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fleet-leasing/2016/08/23/salary-sacrifice-caught-in-the-crossfire-of-hmrc- luftverbesserung-in-stuttgart-fahrverbote-fuer-aeltere-diesel-ab-2018/-/
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news/2016/11/23/partial-reprieve-for-salary-sacrifice-and-company-car-tax- auf-max-brauer-allee-a-1145774.html, 2017
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19. mergermarket.com
fleet-leasing/2016/12/01/zenith-welcomes-chancellor-s-announcement-on-
salary-sacrifice, 2016 20. Deloitte analysis, estimation of multi-make of two thirds in Alphabet‘s EU fleet
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28. Daimler Annual Report 2016
EWR)
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der-wltp-zyklus-wirklich-besser_id_5749720.html, 2016 30. Deloitte: Blockchain @ Auto Finance - How Blockchain can enable the future
of mobility, 2017
12. Verband der Automobilindustrie: https://www.vda.de/de/themen/umwelt-
und-klima/abgasemissionen/wltp-weltweit-harmonisierter-zyklus-fuer- 31. Autonomes Fahren in Deutschland – wie Kunden überzeugt warden, 2016
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medien/461/publikationen/3773.pdf, 2010
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choose-ultra-low-emission-vehicles, 2016
54
55
Contacts
Sebastian Pfeifle Christopher Ley

Partner Senior Manager
Global Auto Finance Lead Auto Finance Strategy
Germany Germany
Strategy & Operations Monitor Deloitte
Tel: +49 (0)151 5807 0435 Tel: +49 (0)151 5807 0727
[email protected] [email protected]
Florian Tauschek Philipp Enderle

Senior Consultant Consultant
Germany Germany
Monitor Deloitte Strategy & Operations
Tel: +49 (0)151 5800 2463 Tel: +49 (0)151 5807 0368
[email protected] [email protected]
56
57
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CZ Fleet Management in Europe

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CZ Fleet Management in Europe

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Fleet management in Europe

Growing importance in a world

Typical fleet management

Fig. 1 – Typical fleet management service offering

Vehicle (New) vehicle

Driver support Registration and

Source: Deloitte analysis

Source: Global Fleet (2015)

Fitness-Tracker eher nicht

21% auf keinen Fall

Fig. 3 – New car registrations in Europe (EU16) in millions

Source: Deloitte analysis, Dataforce (2016), LMC (2016)

2020e 1,179,055 41%

2016 1,132,727 38%

2012 862,900 37%

2020e 991,752 29%

2016 924,305 27%

2012 831,115 25%

2020e 814,303 32%

2016 751,561 32%

2012 682,605 30%

2020e 529,159 23%

2016 430,489 23%

2012 335,028 22%

2020e 319,406 21%

2016 277,081 21%

2012 183,574 24%

Source: Deloitte analysis, Dataforce (2016), LMC (2016)

Fig. 5 – Expected future development of CO2 emission limits in Europe

Source: Deloitte analysis 10,13

Deep dive – Regional Regulatory Impacts

Fig. 6 – Top 5 fleet management companies in Europe

LP Group B.V., LP Group BV’s

100% subsidiary of May 2016, ALD

>1,000,000 June 2015, Arval

September 2011, Alpha­

July 2016, Daimler FS

Source: Deloitte Analysis, mergermarket.com, Annual Reports, Company Websites

Market is consolidating Economies of scale

Fig. 7 – Strong consolidation in European fleet management market

LHS LeasePlan FleetLogistics

ALD Automotive Alphabet

>50% of total European fleet market

Source: Deloitte analysis

24 * High level price simulation based on publicly available information

Fig. 8 – Selected transactions of Top 5 players in recent years

2011 2015 2016 2016

Vehicles 240,000 164,000 250,000 61,500

Price ~ € 700M n/a ~ € 1.1B ~ € 300M

Ø per vehicle € 2,917 n/a € 4,400 € 4,878

Fig. 9 – Average amount paid per vehicle based on historical transactions

2,000 € 3,550 Buyer Alphabet

Source: Deloitte analysis, mergermarket.com

Source: Deloitte analysis, BMW (2017): Annual report 201620

Established in 1989, Zenith is one of the Zenith is working in a cooperation with

Fig. 11 – Development of the valuation of Zenith Group Holdings Ltd

P/ E 13.8x 8.7x 11.8x 25.7x n/a n/a

Buyer 3i Dunedin Equistone Morgan HgCapital Bridgepoint

September 2011, Alpha

Able to shift from vehicle-related Multi-brand is the key to fulfilling