Ayvens\u00a0refers to \u201cthe Company\u201d and its subsidiaries (together \u201cthe Group\u201d).\u00a0Ayvens is a service leasing and vehicle Fleet Management group with a fleet of around 3.3\u00a0million vehicles. The Group provides financing and management services in 41\u00a0countries in the world as at the date of this Universal Registration Document, including the following businesses:
The Company holds the regulated status as a Financial Holding Company (\u201cFHC\u201d) and operates under the direct supervision of the European Central Bank.
The Company is a French\u00a0soci\u00e9t\u00e9 anonyme\u00a0incorporated in\u00a0Societe Generale\u00a0Group. Its registered office is located at\u00a01-3 Rue Eug\u00e8ne et Armand Peugeot, Le Corosa, 92500 Rueil-Malmaison,\u00a0France.
The Company is a subsidiary of Societe Generale Group with 52.59% ownership.
The consolidated financial statements are in millions of euros, which is the Group\u2019s presentation currency and values are rounded to the nearest million, unless otherwise indicated. In certain cases, rounding may cause non-material discrepancies in the lines and columns showing totals.", "dimensions": { "concept": "ifrs-full:DisclosureOfGeneralInformationAboutFinancialStatementsExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "cfbb24f4-ebbf-4e10-8e9f-cb083cb61f93": { "value": "Ayvens", "dimensions": { "concept": "ifrs-full:NameOfReportingEntityOrOtherMeansOfIdentification", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "fc_13f96409-6291-4725-b0ae-dd5c3bad060a": { "value": "Ayvens is a service leasing and vehicle Fleet Management group with a fleet of around 3.3\u00a0million vehicles. The Group provides financing and management services in 41\u00a0countries in the world as at the date of this Universal Registration Document", "dimensions": { "concept": "ifrs-full:DescriptionOfNatureOfEntitysOperationsAndPrincipalActivities", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "fc_16e5739f-248e-4112-b40d-906dd69a7abd": { "value": "soci\u00e9t\u00e9 anonyme", "dimensions": { "concept": "ifrs-full:LegalFormOfEntity", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "fc_16e5739f-248e111": { "value": "Societe Generale", "dimensions": { "concept": "ifrs-full:NameOfParentEntity", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "fc_8938dc2f-e28f-46d5-89e8-07b6abb2003f": { "value": "Societe Generale", "dimensions": { "concept": "ifrs-full:NameOfUltimateParentOfGroup", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "fc_16e5739f-248e113": { "value": "1-3 Rue Eug\u00e8ne et Armand Peugeot, Le Corosa, 92500 Rueil-Malmaison", "dimensions": { "concept": "ifrs-full:PrincipalPlaceOfBusiness", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "fc_294799a9-2797-48bd-b539-20c480b84c4f": { "value": "1-3 Rue Eug\u00e8ne et Armand Peugeot, Le Corosa, 92500 Rueil-Malmaison", "dimensions": { "concept": "ifrs-full:AddressOfRegisteredOfficeOfEntity", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "fc_16e5739f-248e112": { "value": "France", "dimensions": { "concept": "ifrs-full:CountryOfIncorporation", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "fc_70f18ca1-edb3-4f5a-a1bb-af03bdf3d9ad": { "value": "France", "dimensions": { "concept": "ifrs-full:DomicileOfEntity", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_963d767e-ed41-45b4-ac19-3fba4f8d77d2": { "value": "\u00a0
On 22\u00a0May 2023, following the approvals of ALD\u2019s Board of Directors and relevant regulatory authorities, ALD acquired 100% of LeasePlan for a consideration of EUR\u00a04,969\u00a0million.
After the completion of the LeasePlan acquisition, Societe\u202fGenerale remains the majority shareholder of the new combined entity, named Ayvens since 16\u00a0October 2023, with a stake of 52.59% (the Group voting interest is 68.99% as at 31\u00a0December 2023 due to double voting rights). This stake may be reduced to 50.95% in the event of the exercise of the shares with warrants attached that have been granted to LeasePlan\u2019s former shareholders.\u00a0
LeasePlan\u2019s identifiable assets and liabilities were measured at fair value at the date of the acquisition by ALD.
In 2024, the purchase price allocation to newly identified intangible assets including customer relationships has been finalised. The Group has recognised a goodwill of EUR\u00a01,548\u00a0million related to the acquisition of LeasePlan.
As a result of the allocation of LeasePlan\u2019s purchase price, the assessment of the entity\u2019s identifiable assets and liabilities acquired, assumed at fair value led the Group to revise upwards the value of LeasePlan\u2019s net assets by EUR\u00a0150.9\u00a0million. Provisional amount of EUR\u00a0230.9\u00a0million was allocated in 2023 and \u2013 EUR\u00a080\u00a0million adjustment to the provisional amount was recognised in 2024. Thus, completing initial accounting for business combination resulted in the comparative information for the prior period to be revised. Closing amounts of assets and liabilities of LeasePlan as of 31\u00a0December 2023 were restated to reflect adjustment to the provisional allocations. All changes in depreciation and amortisation and other income effects associated with this restatement relate to the second semester of 2023 due to the acquisition date, hence they are reflected by restating the comparative income statement of 2023 in the Group annual financial statements of 2024. For further detail see Note\u00a03.1.
Details of the purchase price and calculation of the goodwill are set out in the table below:
(in EUR million) | As at 31\u00a0December 2024 |
|---|---|
Purchase price paid in ALD equity instruments\u00a0(1) | 2,999.5 |
of which: | \u00a0 |
\u00a0Purchase price paid in ALD shares\u00a0(2) | 2,871.4 |
\u00a0Fair value of warrants attached to shares | 128.1 |
Purchase price paid in cash | 1,827.5 |
of which: | \u00a0 |
Capital increase | 1,212.0 |
Tier\u00a02 subordinated debt | 615.5 |
Total purchase price | 4,827.0 |
Contingent consideration\u00a0(3) | 141.7 |
Total purchase price including contingent consideration (A) | 4,968.7 |
Net book value of assets acquired | 3,782.8 |
Fair value adjustments (PPA) | 150.9 |
Non-controlling interests | (513.0) |
Fair value of net assets acquired (B) | 3,420.7 |
Goodwill (A)\u00a0\u2013 (B) | 1,548.0 |
|
\u00a0
The fair values of the assets acquired and liabilities assumed have been determined using various valuation methods. Please refer to the published financial statements and disclosures of the Group as at 31\u00a0December 2023 for further detail on the valuation methods used.
Main updates to the purchase price allocation in 2024 relate to:
Details of the fair value adjustments are set out in the table below:
(in EUR million) | Allocations as at acquisition date (historical net book value) | Fair value adjustments\u00a0\u2013 PPA 2023 | Preliminary allocations after fair value adjustments in\u00a02023 | Fair value adjustments\u00a0\u2013 PPA update 2024 | Final allocations as at acquisition date |
|---|---|---|---|---|---|
Lease assets\u00a0\u2013 revenue earning fleet\u00a0(1) | 22,431.9 | 373.8 | 22,805.7 | 59.5 | 22,865.2 |
Property, plant and equipment and right-of-use assets | 238.4 | 7.5 | 245.9 | \u00a0 | 245.9 |
Other intangible assets | 537.1 | (50.7) | 486.4 | (58.0) | 428.4 |
\u00a0o/w Customer relationships | 124.4 | 154.6 | 279.0 | 4.6 | 283.6 |
Lease receivables from clients | 683.0 | \u2212 | 683.0 | (17.6) | 665.4 |
Receivables from financial and other institutions | 614.6 | \u2212 | 614.6 | \u00a0 | 614.6 |
Cash & Cash equivalents | 3,811.8 | \u2212 | 3,811.8 | \u00a0 | 3,811.8 |
Non-current assets held for sale (net of liabilities)\u00a0(1) | 617.4 | 33.2 | 650.7 | \u00a0 | 650.7 |
Borrowings from financial institutions | (2,686.5) | (6.8) | (2,693.3) | \u00a0 | (2,693.3) |
\u00a0o/w Deposits | (11,334.9) | 33.2 | (11,301.7) | \u00a0 | (11,301.7) |
\u00a0o/w Bonds and notes issued | (9,325.9) | 6.5 | (9,319.3) | \u00a0 | (9,319.3) |
Financial debt | (23,347.3) | 32.9 | (23,314.3) | \u00a0 | (23,314.3) |
Net tax assets and liabilities | (505.0) | (63.9) | (568.9) | 35.4 | (533.5) |
Net other assets and liabilities | (443.4) | (61.1) | (504.5) | (99.4) | (604.0) |
Fair value of assets and liabilities acquired (C) | 3,782.8 | 230.9 | 4,013.7 | (80.1) | 3,933.6 |
Non-controlling interests (B) | 513.0 | \u2212 | 513.0 | \u2212 | 513.0 |
Total purchase price (A) | 4,896.7 | \u2212 | 4,896.7 | 72.0 | 4,968.7 |
Goodwill (A)+(B)-(C) | 1,626.9 | (230.9) | 1,396.0 | 152.1 | 1,548.0 |
|
The Group applies the acquisition method to account for business combinations.
The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred to the former owners of the Group acquired and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date in accordance with IFRS\u00a03. The Group recognises any non-controlling interest in the company acquired on an acquisition-by-acquisition basis, either at fair value or at the non-controlling interest\u2019s proportionate share of the recognised amounts of acquiree\u2019s identifiable net assets.
Acquisition-related costs are expensed as incurred.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBusinessCombinationsExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_dbed2193-279c-4146-a28e-8fb1cdadf0bc": { "value": "\u00a0
On 22\u00a0May 2023, following the approvals of ALD\u2019s Board of Directors and relevant regulatory authorities, ALD acquired 100% of LeasePlan for a consideration of EUR\u00a04,969\u00a0million.
After the completion of the LeasePlan acquisition, Societe\u202fGenerale remains the majority shareholder of the new combined entity, named Ayvens since 16\u00a0October 2023, with a stake of 52.59% (the Group voting interest is 68.99% as at 31\u00a0December 2023 due to double voting rights). This stake may be reduced to 50.95% in the event of the exercise of the shares with warrants attached that have been granted to LeasePlan\u2019s former shareholders.\u00a0
LeasePlan\u2019s identifiable assets and liabilities were measured at fair value at the date of the acquisition by ALD.
In 2024, the purchase price allocation to newly identified intangible assets including customer relationships has been finalised. The Group has recognised a goodwill of EUR\u00a01,548\u00a0million related to the acquisition of LeasePlan.
As a result of the allocation of LeasePlan\u2019s purchase price, the assessment of the entity\u2019s identifiable assets and liabilities acquired, assumed at fair value led the Group to revise upwards the value of LeasePlan\u2019s net assets by EUR\u00a0150.9\u00a0million. Provisional amount of EUR\u00a0230.9\u00a0million was allocated in 2023 and \u2013 EUR\u00a080\u00a0million adjustment to the provisional amount was recognised in 2024. Thus, completing initial accounting for business combination resulted in the comparative information for the prior period to be revised. Closing amounts of assets and liabilities of LeasePlan as of 31\u00a0December 2023 were restated to reflect adjustment to the provisional allocations. All changes in depreciation and amortisation and other income effects associated with this restatement relate to the second semester of 2023 due to the acquisition date, hence they are reflected by restating the comparative income statement of 2023 in the Group annual financial statements of 2024. For further detail see Note\u00a03.1.
Details of the purchase price and calculation of the goodwill are set out in the table below:
(in EUR million) | As at 31\u00a0December 2024 |
|---|---|
Purchase price paid in ALD equity instruments\u00a0(1) | 2,999.5 |
of which: | \u00a0 |
\u00a0Purchase price paid in ALD shares\u00a0(2) | 2,871.4 |
\u00a0Fair value of warrants attached to shares | 128.1 |
Purchase price paid in cash | 1,827.5 |
of which: | \u00a0 |
Capital increase | 1,212.0 |
Tier\u00a02 subordinated debt | 615.5 |
Total purchase price | 4,827.0 |
Contingent consideration\u00a0(3) | 141.7 |
Total purchase price including contingent consideration (A) | 4,968.7 |
Net book value of assets acquired | 3,782.8 |
Fair value adjustments (PPA) | 150.9 |
Non-controlling interests | (513.0) |
Fair value of net assets acquired (B) | 3,420.7 |
Goodwill (A)\u00a0\u2013 (B) | 1,548.0 |
|
\u00a0
The fair values of the assets acquired and liabilities assumed have been determined using various valuation methods. Please refer to the published financial statements and disclosures of the Group as at 31\u00a0December 2023 for further detail on the valuation methods used.
Main updates to the purchase price allocation in 2024 relate to:
Details of the fair value adjustments are set out in the table below:
(in EUR million) | Allocations as at acquisition date (historical net book value) | Fair value adjustments\u00a0\u2013 PPA 2023 | Preliminary allocations after fair value adjustments in\u00a02023 | Fair value adjustments\u00a0\u2013 PPA update 2024 | Final allocations as at acquisition date |
|---|---|---|---|---|---|
Lease assets\u00a0\u2013 revenue earning fleet\u00a0(1) | 22,431.9 | 373.8 | 22,805.7 | 59.5 | 22,865.2 |
Property, plant and equipment and right-of-use assets | 238.4 | 7.5 | 245.9 | \u00a0 | 245.9 |
Other intangible assets | 537.1 | (50.7) | 486.4 | (58.0) | 428.4 |
\u00a0o/w Customer relationships | 124.4 | 154.6 | 279.0 | 4.6 | 283.6 |
Lease receivables from clients | 683.0 | \u2212 | 683.0 | (17.6) | 665.4 |
Receivables from financial and other institutions | 614.6 | \u2212 | 614.6 | \u00a0 | 614.6 |
Cash & Cash equivalents | 3,811.8 | \u2212 | 3,811.8 | \u00a0 | 3,811.8 |
Non-current assets held for sale (net of liabilities)\u00a0(1) | 617.4 | 33.2 | 650.7 | \u00a0 | 650.7 |
Borrowings from financial institutions | (2,686.5) | (6.8) | (2,693.3) | \u00a0 | (2,693.3) |
\u00a0o/w Deposits | (11,334.9) | 33.2 | (11,301.7) | \u00a0 | (11,301.7) |
\u00a0o/w Bonds and notes issued | (9,325.9) | 6.5 | (9,319.3) | \u00a0 | (9,319.3) |
Financial debt | (23,347.3) | 32.9 | (23,314.3) | \u00a0 | (23,314.3) |
Net tax assets and liabilities | (505.0) | (63.9) | (568.9) | 35.4 | (533.5) |
Net other assets and liabilities | (443.4) | (61.1) | (504.5) | (99.4) | (604.0) |
Fair value of assets and liabilities acquired (C) | 3,782.8 | 230.9 | 4,013.7 | (80.1) | 3,933.6 |
Non-controlling interests (B) | 513.0 | \u2212 | 513.0 | \u2212 | 513.0 |
Total purchase price (A) | 4,896.7 | \u2212 | 4,896.7 | 72.0 | 4,968.7 |
Goodwill (A)+(B)-(C) | 1,626.9 | (230.9) | 1,396.0 | 152.1 | 1,548.0 |
|
Following the restructuring of the Group\u2019s operating segments into four regions including how management views the various operations of the Group, the allocation of goodwill has been revised in alignment with the new regional segmentation.
Management decided that the goodwill will no longer be allocated at country level but at regional level. Therefore, historical goodwill has been reallocated to the 4 regions which correspond to the new groups of cash generating units.
For the LeasePlan goodwill, the Group used a relative value method based on the factors that have driven the valuation to allocate the goodwill to the aggregated CGUs.
Impairment testing for goodwill is now performed at the regional CGU level, reflecting the new segmentation. In terms of unit of account, the historic goodwill and the LeasePlan goodwill are tested as a whole, based on the region allocated. This level of unit of account, reflects the restructuring to one combined operating entity at regional level and the synergies achieved at regional level.
To ensure consistency with the new segment structure, comparative information on goodwill allocation has been restated. This restatement does not affect the total carrying amount of goodwill or previously reported financial results but reflects the updated allocation to the regional CGUs.
\u00a0
Goodwill allocation reported 2023 | 31\u00a0December 2023 Reported | New allocation |
|---|---|---|
France | 212.0 | Region 1 |
Germany | 35.2 | Region 4 |
Germany (Fleetpool) | 14.6 | Region 4 |
Italy | 50.2 | Region 2 |
Spain | 128.0 | Region 4 |
UK | 22.6 | Region 2 |
Benelux | 56.9 | Region 3 |
Nordics Hub | 18.3 | Region 3 |
South Eastern Europe Hub | 9.5 | Region 2 |
North Eastern Europe Hub | 1.4 | Region 3 |
Central Europe Hub | 31.5 | Region 4 |
LeasePlan | 1,548.1 | \u00a0 |
Total | 2,128.3 | \u00a0 |
\u00a0
Goodwill allocation restated 2023 | 31\u00a0December 2023 Restated |
|---|---|
Country | 212.0 |
LeasePlan | 455.6 |
Region 1 | 667.6 |
Country | 82.3 |
LeasePlan | 355.6 |
Region 2 | 437.9 |
Country | 76.6 |
LeasePlan | 462.7 |
Region 3 | 539.3 |
Country | 209.3 |
LeasePlan | 274.2 |
Region 4 | 483.5 |
Total | 2,128.3 |
\u00a0
The 31\u00a0December 2023 reported Goodwill include for Germany Fleetpool and for LeasePlan the Goodwill after the PPA update and error correction, refer to further details in the paragraph \u201cErrors\u201d below.
Goodwill arises on the acquisition of subsidiaries, associates and joint ventures and represents the excess of the consideration transferred over the Group\u2019s interest in the net fair value of the net identifiable assets, liabilities and contingent liabilities of the acquirer. Goodwill is measured at cost less any accumulated impairment losses. When the excess is negative (negative goodwill), it is recognised immediately in the statement of income.
For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash-generating units (\u201cCGUs\u201d), or groups of CGUs, which is expected to benefit from the synergies of the combination. Each unit or group of units to which the goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes.
Goodwill is monitored at an aggregated level (\u201cregions\u201d) as internal management reporting is organised to measure performance (and prepare business plans) at a higher level (group of CGUs). The Group identified the 4 following regions:
Goodwill impairment reviews are undertaken annually or more frequently if events or changes in circumstances indicate a potential impairment. The carrying value of goodwill is compared to the recoverable amount, which is the higher of value in use and the fair value less costs to sell. Any impairment is recognised immediately as an expense and is not subsequently reversed.
Further details are provided in Note\u00a016 Goodwill.
\u00a0
Internal software development costs are capitalised during the application development stage. The costs capitalised relate to external direct costs of materials and services and employee costs related to the time spent on the project during the capitalisation period. Capitalised software is evaluated for impairment annually or when changing circumstances indicate that amounts capitalised may be impaired. Impaired items are written down to their estimated fair values at the date of evaluation.
Internally developed software is normally depreciated over its useful life, generally 3 to 5\u00a0years; however, in some instances this can be longer.
In determining whether goodwill is impaired requires an estimation of the value in use of the groups of cash generating units to which the goodwill assets have been allocated. The key assumptions calculating the value in use are those regarding discount rates, growth rates and other expected changes in cash flows. The estimates and assumptions used are disclosed in Note\u00a016 Goodwill of these consolidated financial statements.
The Group tests annually whether goodwill has suffered any impairment, in accordance with the accounting policy stated presented in Note\u00a03.4.6 of these consolidated financial statements. The recoverable amounts of cash-generating units have been determined based on value-in-use calculations. These calculations require the use of estimates. The Group uses a five-year business plan for each of the group of CGUs identified. The business plans used incorporated assumptions relevant to the current economic climate such as fleet growth, used car market and credit risk.
For goodwill, sensitivity tests are carried out to measure the impact on each group of CGU\u2019s recoverable value based on certain assumptions, refer to Note\u00a016 Goodwill.
(in EUR million) | Goodwill |
|---|---|
Carrying amount as at 1\u00a0January 2023 | 618.6 |
Year ended 31\u00a0December 2023 | \u00a0 |
Opening net book amount | 618.6 |
Impairment | (38.4) |
Scope changes\u00a0(1) | 1,548.1 |
Closing net book amount as at 31\u00a0December 2023 (restated) | 2,128.3 |
At 31\u00a0December 2023 | \u00a0 |
Carrying amount as at 31\u00a0December 2023 (restated) | 2,128.3 |
Year ended 31\u00a0December 2024 | \u00a0 |
Opening net book amount | 2,128.3 |
Closing net book amount as at 31\u00a0December 2024 | 2,128.3 |
At 31\u00a0December 2024 | \u00a0 |
|
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Region 1 | 667.7 | 667.7 |
Region 2 | 470.1 | 470.8 |
Region 3 | 538.6 | 537.9 |
Region 4 | 451.9 | 451.9 |
Total | 2,128.3 | 2,128.3 |
\u00a0
Please refer to Note\u00a06 Segment information for the composition of the four regions.
On an annual basis, the Group performs an impairment test for each (group of) cash-generating unit (CGU) to which goodwill has been allocated.
An impairment loss is recognised in the income statement if the carrying amount of CGU, including its allocated goodwill, is higher than its recoverable amount. This impairment loss is then allocated first to reduce the carrying amount of goodwill.
The recoverable amount of cash-generating unit is calculated using the most appropriate method, generally the discounted cash flow (DCF) method. Cash flows were projected on actual financial results and the 5-year business plans, for which management has assessed and approved the reasonableness of its assumptions by examining the causes of differences between past cash flow projections and actual cash flows.
A discount rate was applied which is built up of a risk-free interest, a market premium multiplied by a market specific beta.
In 2024, there was no impairment recognised. In 2023, the Group booked an impairment of goodwill in the German subsidiary Fleetpool Holding\u00a0GmbH for EUR\u00a038.4\u00a0million. While the volume of active contracts in Fleetpool remained stable over 2023, difficult local procurement conditions, logistical issues in the management of the stock of vehicles, and difficulties in the German subscription market led to a deterioration of the Company\u2019s financial prospects, materially delaying the expansion plan. Several mitigating initiatives have now been undertaken to accelerate the integration of Fleetpool\u2019s operations and technology with other Group entities.
\u00a0
The key assumptions used for value-in-use calculations in 2024 are as follows:
\u00a0 | Discount rate 2024 | Perpetuity rate 2024 |
|---|---|---|
Region 1 | 9.9% | 2.0% |
Region 2 | 12.3% | 2.0% |
Region 3 | 8.6% | 2.0% |
Region 4 | 10.8% | 2.0% |
\u00a0
The Group has performed additional sensitivity analysis for the future cashflow projections. The analysis used the following sensitivities:
Based on the assumptions made by the Group, even with these severe stresses, no need for impairment of goodwill, has been identified in 2024.
(in EUR million) | Software (internally generated) | Software licenses (external) | Customer relationships | Assets under construction | Other | Total |
|---|---|---|---|---|---|---|
At 1\u00a0January 2023 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Gross value\u00a0 | 104.6 | 84.6 | 20.3 | 31.9 | 3.7 | 245.0 |
Accumulated amortisation and impairment | (45.8) | (66.7) | (5.9) | \u2212 | (0.0) | (118.4) |
Net book value as at 1\u00a0January 2023 | 58.8 | 17.9 | 14.4 | 31.9 | 3.7 | 126.6 |
Year ended 31\u00a0December 2023 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Opening net book value | 58.8 | 17.9 | 14.4 | 31.9 | 3.7 | 126.6 |
Additions\u00a0(1) | 71.1 | 16.2 | 279.0 | 112.8 | 0.1 | 479.3 |
Divestments | (0.0) | (2.1) | \u2212 | (18.5) | (3.6) | (24.1) |
Impairment | (1.6) | \u2212 | \u2212 | \u2212 | \u2212 | (1.6) |
Amortisation | (54.8) | (10.9) | (13.3) | \u2212 | (4.8) | (83.8) |
Scope changes\u00a0(1) | (26.6) | 18.0 | 4.6 | 143.8 | 9.6 | 149.4 |
Currency translation differences | 0.3 | (0.1) | \u2212 | \u2212 | 0.0 | 0.2 |
Closing net book as at 31\u00a0December 2023 | 47.1 | 39.0 | 284.7 | 270.0 | 5.1 | 645.9 |
At 31\u00a0December 2023 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Gross value\u00a0 | 475.9 | 152.7 | 303.9 | 270.0 | 9.8 | 1,212.3 |
Accumulated amortisation and impairment | (428.8) | (113.7) | (19.2) | \u2212 | (4.7) | (566.4) |
Net book value \u00a0as at 31\u00a0December 2023 | 47.1 | 39.0 | 284.7 | 270.0 | 5.1 | 645.9 |
Year ended 31\u00a0December 2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Opening net book value | 47.1 | 39.0 | 284.7 | 270.0 | 5.1 | 645.9 |
Additions | 19.8 | 17.7 | \u2212 | 86.5 | \u2212 | 124.0 |
Divestments | (6.3) | (0.0) | (0.5) | \u2212 | (0.1) | (6.8) |
Reclassification | 267.5 | (0.1) | \u2212 | (267.5) | \u2212 | \u2212 |
Amortisation | (62.3) | (13.5) | (20.5) | \u2212 | (4.9) | (101.2) |
Scope changes | \u2212 | \u2212 | \u2212 | \u2212 | \u2212 | \u2212 |
Currency translation differences | 1.0 | (0.2) | \u2212 | (0.0) | 0.0 | 0.8 |
Closing net book value \u00a0as at 31\u00a0December 2024 | 267.0 | 42.9 | 263.7 | 89.0 | 0.1 | 662.9 |
At 31\u00a0December 2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Gross value\u00a0 | 553.0 | 153.4 | 303.9 | 89.0 | 9.7 | 1,109.0 |
Accumulated amortisation and impairment | (286.0) | (110.3) | (40.2) | \u2212 | (9.6) | (446.0) |
Net book value as at 31\u00a0December 2024 | 267.0 | 43.1 | 263.7 | 89.0 | 0.1 | 662.9 |
|
\u00a0
In 2024 the purchase price allocation was updated. This included a further decrease of EUR\u00a062.6\u00a0million in the value of LeasePlan\u2019s software at the date of acquisition due to a completion rate adjustment, corrections of previous modifications and confirmation of structural problems.
LeasePlan\u2019s Next Generation Digital Architecture programme, launched in 2019 to deliver a harmonized and standardized global digital architecture, was scaled down to 3 entities after the signature of the acquisition MoU in January\u00a02022. The Group started a thorough review of this programme immediately after the acquisition closing. In the context of the LeasePlan purchase price allocation, taking into account the significant delay in deployment and the articulation with rest of the IT architecture, the Group decided to stop new developments, while re-using assets of value and leveraging with ALD\u2019s strong back-office systems. As a result, at the date of the acquisition this intangible asset was marked down by EUR\u00a0203\u00a0million (net book value as at end 2023: EUR\u00a0262\u00a0million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfIntangibleAssetsAndGoodwillExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_548eb840-163c-4b02-b7da-4804fdd5ae3d": { "value": "\u00a0
On 22\u00a0May 2023, following the approvals of ALD\u2019s Board of Directors and relevant regulatory authorities, ALD acquired 100% of LeasePlan for a consideration of EUR\u00a04,969\u00a0million.
After the completion of the LeasePlan acquisition, Societe\u202fGenerale remains the majority shareholder of the new combined entity, named Ayvens since 16\u00a0October 2023, with a stake of 52.59% (the Group voting interest is 68.99% as at 31\u00a0December 2023 due to double voting rights). This stake may be reduced to 50.95% in the event of the exercise of the shares with warrants attached that have been granted to LeasePlan\u2019s former shareholders.\u00a0
LeasePlan\u2019s identifiable assets and liabilities were measured at fair value at the date of the acquisition by ALD.
In 2024, the purchase price allocation to newly identified intangible assets including customer relationships has been finalised. The Group has recognised a goodwill of EUR\u00a01,548\u00a0million related to the acquisition of LeasePlan.
As a result of the allocation of LeasePlan\u2019s purchase price, the assessment of the entity\u2019s identifiable assets and liabilities acquired, assumed at fair value led the Group to revise upwards the value of LeasePlan\u2019s net assets by EUR\u00a0150.9\u00a0million. Provisional amount of EUR\u00a0230.9\u00a0million was allocated in 2023 and \u2013 EUR\u00a080\u00a0million adjustment to the provisional amount was recognised in 2024. Thus, completing initial accounting for business combination resulted in the comparative information for the prior period to be revised. Closing amounts of assets and liabilities of LeasePlan as of 31\u00a0December 2023 were restated to reflect adjustment to the provisional allocations. All changes in depreciation and amortisation and other income effects associated with this restatement relate to the second semester of 2023 due to the acquisition date, hence they are reflected by restating the comparative income statement of 2023 in the Group annual financial statements of 2024. For further detail see Note\u00a03.1.
Details of the purchase price and calculation of the goodwill are set out in the table below:
(in EUR million) | As at 31\u00a0December 2024 |
|---|---|
Purchase price paid in ALD equity instruments\u00a0(1) | 2,999.5 |
of which: | \u00a0 |
\u00a0Purchase price paid in ALD shares\u00a0(2) | 2,871.4 |
\u00a0Fair value of warrants attached to shares | 128.1 |
Purchase price paid in cash | 1,827.5 |
of which: | \u00a0 |
Capital increase | 1,212.0 |
Tier\u00a02 subordinated debt | 615.5 |
Total purchase price | 4,827.0 |
Contingent consideration\u00a0(3) | 141.7 |
Total purchase price including contingent consideration (A) | 4,968.7 |
Net book value of assets acquired | 3,782.8 |
Fair value adjustments (PPA) | 150.9 |
Non-controlling interests | (513.0) |
Fair value of net assets acquired (B) | 3,420.7 |
Goodwill (A)\u00a0\u2013 (B) | 1,548.0 |
|
\u00a0
The fair values of the assets acquired and liabilities assumed have been determined using various valuation methods. Please refer to the published financial statements and disclosures of the Group as at 31\u00a0December 2023 for further detail on the valuation methods used.
Main updates to the purchase price allocation in 2024 relate to:
Details of the fair value adjustments are set out in the table below:
(in EUR million) | Allocations as at acquisition date (historical net book value) | Fair value adjustments\u00a0\u2013 PPA 2023 | Preliminary allocations after fair value adjustments in\u00a02023 | Fair value adjustments\u00a0\u2013 PPA update 2024 | Final allocations as at acquisition date |
|---|---|---|---|---|---|
Lease assets\u00a0\u2013 revenue earning fleet\u00a0(1) | 22,431.9 | 373.8 | 22,805.7 | 59.5 | 22,865.2 |
Property, plant and equipment and right-of-use assets | 238.4 | 7.5 | 245.9 | \u00a0 | 245.9 |
Other intangible assets | 537.1 | (50.7) | 486.4 | (58.0) | 428.4 |
\u00a0o/w Customer relationships | 124.4 | 154.6 | 279.0 | 4.6 | 283.6 |
Lease receivables from clients | 683.0 | \u2212 | 683.0 | (17.6) | 665.4 |
Receivables from financial and other institutions | 614.6 | \u2212 | 614.6 | \u00a0 | 614.6 |
Cash & Cash equivalents | 3,811.8 | \u2212 | 3,811.8 | \u00a0 | 3,811.8 |
Non-current assets held for sale (net of liabilities)\u00a0(1) | 617.4 | 33.2 | 650.7 | \u00a0 | 650.7 |
Borrowings from financial institutions | (2,686.5) | (6.8) | (2,693.3) | \u00a0 | (2,693.3) |
\u00a0o/w Deposits | (11,334.9) | 33.2 | (11,301.7) | \u00a0 | (11,301.7) |
\u00a0o/w Bonds and notes issued | (9,325.9) | 6.5 | (9,319.3) | \u00a0 | (9,319.3) |
Financial debt | (23,347.3) | 32.9 | (23,314.3) | \u00a0 | (23,314.3) |
Net tax assets and liabilities | (505.0) | (63.9) | (568.9) | 35.4 | (533.5) |
Net other assets and liabilities | (443.4) | (61.1) | (504.5) | (99.4) | (604.0) |
Fair value of assets and liabilities acquired (C) | 3,782.8 | 230.9 | 4,013.7 | (80.1) | 3,933.6 |
Non-controlling interests (B) | 513.0 | \u2212 | 513.0 | \u2212 | 513.0 |
Total purchase price (A) | 4,896.7 | \u2212 | 4,896.7 | 72.0 | 4,968.7 |
Goodwill (A)+(B)-(C) | 1,626.9 | (230.9) | 1,396.0 | 152.1 | 1,548.0 |
|
Following the restructuring of the Group\u2019s operating segments into four regions including how management views the various operations of the Group, the allocation of goodwill has been revised in alignment with the new regional segmentation.
Management decided that the goodwill will no longer be allocated at country level but at regional level. Therefore, historical goodwill has been reallocated to the 4 regions which correspond to the new groups of cash generating units.
For the LeasePlan goodwill, the Group used a relative value method based on the factors that have driven the valuation to allocate the goodwill to the aggregated CGUs.
Impairment testing for goodwill is now performed at the regional CGU level, reflecting the new segmentation. In terms of unit of account, the historic goodwill and the LeasePlan goodwill are tested as a whole, based on the region allocated. This level of unit of account, reflects the restructuring to one combined operating entity at regional level and the synergies achieved at regional level.
To ensure consistency with the new segment structure, comparative information on goodwill allocation has been restated. This restatement does not affect the total carrying amount of goodwill or previously reported financial results but reflects the updated allocation to the regional CGUs.
\u00a0
Goodwill allocation reported 2023 | 31\u00a0December 2023 Reported | New allocation |
|---|---|---|
France | 212.0 | Region 1 |
Germany | 35.2 | Region 4 |
Germany (Fleetpool) | 14.6 | Region 4 |
Italy | 50.2 | Region 2 |
Spain | 128.0 | Region 4 |
UK | 22.6 | Region 2 |
Benelux | 56.9 | Region 3 |
Nordics Hub | 18.3 | Region 3 |
South Eastern Europe Hub | 9.5 | Region 2 |
North Eastern Europe Hub | 1.4 | Region 3 |
Central Europe Hub | 31.5 | Region 4 |
LeasePlan | 1,548.1 | \u00a0 |
Total | 2,128.3 | \u00a0 |
\u00a0
Goodwill allocation restated 2023 | 31\u00a0December 2023 Restated |
|---|---|
Country | 212.0 |
LeasePlan | 455.6 |
Region 1 | 667.6 |
Country | 82.3 |
LeasePlan | 355.6 |
Region 2 | 437.9 |
Country | 76.6 |
LeasePlan | 462.7 |
Region 3 | 539.3 |
Country | 209.3 |
LeasePlan | 274.2 |
Region 4 | 483.5 |
Total | 2,128.3 |
\u00a0
The 31\u00a0December 2023 reported Goodwill include for Germany Fleetpool and for LeasePlan the Goodwill after the PPA update and error correction, refer to further details in the paragraph \u201cErrors\u201d below.
Goodwill arises on the acquisition of subsidiaries, associates and joint ventures and represents the excess of the consideration transferred over the Group\u2019s interest in the net fair value of the net identifiable assets, liabilities and contingent liabilities of the acquirer. Goodwill is measured at cost less any accumulated impairment losses. When the excess is negative (negative goodwill), it is recognised immediately in the statement of income.
For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash-generating units (\u201cCGUs\u201d), or groups of CGUs, which is expected to benefit from the synergies of the combination. Each unit or group of units to which the goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes.
Goodwill is monitored at an aggregated level (\u201cregions\u201d) as internal management reporting is organised to measure performance (and prepare business plans) at a higher level (group of CGUs). The Group identified the 4 following regions:
Goodwill impairment reviews are undertaken annually or more frequently if events or changes in circumstances indicate a potential impairment. The carrying value of goodwill is compared to the recoverable amount, which is the higher of value in use and the fair value less costs to sell. Any impairment is recognised immediately as an expense and is not subsequently reversed.
Further details are provided in Note\u00a016 Goodwill.
In determining whether goodwill is impaired requires an estimation of the value in use of the groups of cash generating units to which the goodwill assets have been allocated. The key assumptions calculating the value in use are those regarding discount rates, growth rates and other expected changes in cash flows. The estimates and assumptions used are disclosed in Note\u00a016 Goodwill of these consolidated financial statements.
The Group tests annually whether goodwill has suffered any impairment, in accordance with the accounting policy stated presented in Note\u00a03.4.6 of these consolidated financial statements. The recoverable amounts of cash-generating units have been determined based on value-in-use calculations. These calculations require the use of estimates. The Group uses a five-year business plan for each of the group of CGUs identified. The business plans used incorporated assumptions relevant to the current economic climate such as fleet growth, used car market and credit risk.
For goodwill, sensitivity tests are carried out to measure the impact on each group of CGU\u2019s recoverable value based on certain assumptions, refer to Note\u00a016 Goodwill.
(in EUR million) | Goodwill |
|---|---|
Carrying amount as at 1\u00a0January 2023 | 618.6 |
Year ended 31\u00a0December 2023 | \u00a0 |
Opening net book amount | 618.6 |
Impairment | (38.4) |
Scope changes\u00a0(1) | 1,548.1 |
Closing net book amount as at 31\u00a0December 2023 (restated) | 2,128.3 |
At 31\u00a0December 2023 | \u00a0 |
Carrying amount as at 31\u00a0December 2023 (restated) | 2,128.3 |
Year ended 31\u00a0December 2024 | \u00a0 |
Opening net book amount | 2,128.3 |
Closing net book amount as at 31\u00a0December 2024 | 2,128.3 |
At 31\u00a0December 2024 | \u00a0 |
|
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Region 1 | 667.7 | 667.7 |
Region 2 | 470.1 | 470.8 |
Region 3 | 538.6 | 537.9 |
Region 4 | 451.9 | 451.9 |
Total | 2,128.3 | 2,128.3 |
\u00a0
Please refer to Note\u00a06 Segment information for the composition of the four regions.
On an annual basis, the Group performs an impairment test for each (group of) cash-generating unit (CGU) to which goodwill has been allocated.
An impairment loss is recognised in the income statement if the carrying amount of CGU, including its allocated goodwill, is higher than its recoverable amount. This impairment loss is then allocated first to reduce the carrying amount of goodwill.
The recoverable amount of cash-generating unit is calculated using the most appropriate method, generally the discounted cash flow (DCF) method. Cash flows were projected on actual financial results and the 5-year business plans, for which management has assessed and approved the reasonableness of its assumptions by examining the causes of differences between past cash flow projections and actual cash flows.
A discount rate was applied which is built up of a risk-free interest, a market premium multiplied by a market specific beta.
In 2024, there was no impairment recognised. In 2023, the Group booked an impairment of goodwill in the German subsidiary Fleetpool Holding\u00a0GmbH for EUR\u00a038.4\u00a0million. While the volume of active contracts in Fleetpool remained stable over 2023, difficult local procurement conditions, logistical issues in the management of the stock of vehicles, and difficulties in the German subscription market led to a deterioration of the Company\u2019s financial prospects, materially delaying the expansion plan. Several mitigating initiatives have now been undertaken to accelerate the integration of Fleetpool\u2019s operations and technology with other Group entities.
\u00a0
The key assumptions used for value-in-use calculations in 2024 are as follows:
\u00a0 | Discount rate 2024 | Perpetuity rate 2024 |
|---|---|---|
Region 1 | 9.9% | 2.0% |
Region 2 | 12.3% | 2.0% |
Region 3 | 8.6% | 2.0% |
Region 4 | 10.8% | 2.0% |
\u00a0
The Group has performed additional sensitivity analysis for the future cashflow projections. The analysis used the following sensitivities:
Based on the assumptions made by the Group, even with these severe stresses, no need for impairment of goodwill, has been identified in 2024.
", "dimensions": { "concept": "ifrs-full:DisclosureOfGoodwillExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_d587a1d2-e97f-45a7-82e3-7b0d06cd4633": { "value": "In March\u00a02024, Ayvens obtained the Declaration of No-Objection (DNO) from both the European Central Bank and the Dutch National Bank. The DNO allows the Group to merge ALD and LeasePlan\u2019s activities and is an important step forward in the journey towards integration to become \u201cone\u201d. Consequently, the shares of almost all LeasePlan entities have been transferred in a phased approach from LeasePlan Corporation NV to Ayvens\u00a0SA with remaining few to be transferred in 2025. Once this is completed, Ayvens\u00a0SA will, directly or indirectly, own all operating entities, ultimately allowing it to simplify and streamline the corporate governance, processes and business activities, particularly in the 20 overlapping countries where both entities are present.
At 31\u00a0December 2024, all companies are fully consolidated, except three companies accounted for using the equity method. For more details, please refer to Note\u00a018, Investments in associates and jointly controlled entities. Changes in the scope of consolidation compared to 31\u00a0December 2023 are as follows:
Subsidiaries are all entities which the Group controls. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.
Inter-company transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses are also eliminated. When necessary, amounts reported by subsidiaries have been adjusted to conform to the Group\u2019s accounting policies.
For non-wholly owned subsidiaries, non-controlling interests are presented in equity separately from the equity attributable to shareholders of the Group. Profit or loss and other comprehensive income are attributed to the shareholders of the Group and to non-controlling interests even if this results in the non-controlling interests having a deficit balance. Changes in ownership interest in subsidiaries that do not result in a change in control are accounted for in equity. The carrying amounts of the controlling and non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiary. Any difference between the amount by which the non-controlling interest is adjusted and the fair value of the consideration paid or received is recorded directly in equity and attributed to the shareholders of the Group.
Associates are investments over which the Group has significant influence, which is the power to participate in the financial and operating policy decisions of the investee, but without the ability to exercise control or joint control. Typically, the Group owns between 20% and 50% of the voting equity of its associates.
The Group accounts for its investment in associates using the equity method. The Group\u2019s share of profits or losses of associates is recognised in the consolidated statement of income and its share of other comprehensive income (loss) of associates is included in other comprehensive income.
Unrealised gains on transactions between the Group and an associate are eliminated to the extent of the Group\u2019s interest in the associate. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Dilution gains and losses arising from changes in interests in investments in associates are recognised in the consolidated statement of income.
Joint arrangements are arrangements in which the Group shares joint control with one or more parties. Joint control is the contractually agreed sharing of control of an arrangement, and exists only when decisions about the activities that significantly affect the arrangement\u2019s returns require the unanimous consent of the parties sharing control.
Judgement is required in determining this classification through an evaluation of the facts and circumstances arising from each individual arrangement. Joint arrangements are classified as either joint operations or joint ventures based on the rights and obligations of the parties to the arrangement. In joint operations, the parties have rights to the assets and obligations for the liabilities relating to the arrangement, whereas in joint ventures, the parties have rights to the net assets of the arrangement. The Group has assessed the nature of its joint arrangements and determined them to be joint ventures.
Investments in joint ventures are accounted for using the equity method of accounting except when classified as held for sale. The Group\u2019s share of associates\u2019 and joint ventures\u2019 Net income is based on their most recent audited financial statements or unaudited interim statements drawn up to the Group\u2019s balance sheet date. Accounting policies of the joint ventures are modified where necessary to ensure consistency with the policies adopted by the Group.
The total carrying values of investments in joint ventures represent the cost of each investment including the carrying value of goodwill, the share of post-acquisition retained earnings, any other movements in reserves and any long-term debt interests which in substance form part of the Group\u2019s net investment, less any cumulative impairments. The carrying values of associates and joint ventures are reviewed on a regular basis and if there is objective evidence that an impairment in value has occurred as a result of one or more events during the period, the investment is impaired. Investments which have been previously impaired are regularly reviewed for indicators of impairment reversal.
The Group\u2019s share of an associate\u2019s or joint venture\u2019s losses in excess of its interest in that associate or joint venture is not recognised unless the Group has an obligation to fund such losses. Unrealised gains arising from transactions with associates and joint ventures are eliminated against the investment to the extent of the Group\u2019s interest in the investee. Unrealised losses are eliminated in the same way, but only to the extent that there is no evidence of impairment.
Name | Country of incorporation | Activity | Type of equity investment | Carrying value (in EUR million) | % Ownership |
|---|---|---|---|---|---|
LeasePlan Emirates LLC | EMIRATE OF ABU DHABI | Leasing | Joint venture | 18.2 | 49% |
Flottenmanagement\u00a0GmbH | AUSTRIA | Leasing | Joint venture | 5.9 | 49% |
PLease SCS | FRANCE | Leasing | Joint venture | 4.7 | 99% |
\u00a0
PLease is a soci\u00e9t\u00e9 en commandite simple (SCS) under French law, whereby the Group is one of the partners. PLease is governed by a steering committee and a strategic committee whereby the Group can nominate two of the four members of each committee. In the steering committee decisions require a majority of its member votes and in the strategic committee decisions can only be taken unanimously.
In December 2024 the stake of 35% in associate ALD Automotive SA Maroc has been derecognised.
\u00a0
(in EUR million) | 2024 | 2023 | ||||
|---|---|---|---|---|---|---|
Associates | Joint Ventures | Total | Associates | Joint Ventures | Total | |
Balance as at 1\u00a0January | 9.5 | 23.9 | 33.4 | 7.9 | \u2212 | 7.9 |
Share of result for the year | 2.3 | 7.4 | 9.7 | 1.4 | 5.0 | 6.4 |
Dividends paid | (0.5) | (3.3) | (3.8) | (0.0) | (6.3) | (6.3) |
Currency translation differences | 0.3 | 1.1 | 1.4 | 0.2 | (0.1) | 0.1 |
Scope changes | (11.6) | (0.3) | (11.9) | \u2212 | 25.4 | 25.4 |
Balance as at 31\u00a0December | \u2212 | 28.8 | 28.8 | 9.5 | 23.9 | 33.4 |
\u00a0
The summarised statement of comprehensive income below does not represent the proportionate share of entity, but the actual amount included in the separate financial statements of the material interests in investments accounted for using the equity method.
\u00a0
(in EUR million) | 2024 | 2023 | ||
|---|---|---|---|---|
Joint | Associates | Joint | Total | |
Income Statement | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Revenues | 186.3 | 63.3 | 172.0 | 235.3 |
Direct costs | (157.3) | (53.6) | (145.0) | (198.6) |
Gross operating income | 29.0 | 9.7 | 27.0 | 36.7 |
Total operating costs | (9.7) | (4.6) | (15.0) | (19.6) |
Other income/costs | \u2212 | (0.6) | \u2013 | (0.6) |
Income tax | (3.2) | (0.5) | (1.0) | (1.5) |
Profit for the period | 16.1 | 4.0 | 11.0 | 15.0 |
Total comprehensive income at 100% | 16.1 | 4.0 | 11.0 | 15.0 |
Group share of profit for the year | 9.7 | 1.4 | 5.0 | 6.4 |
\u00a0
The summarised financial information below does not represent the proportionate share of the entity, but the actual amount included in the separate financial statements of the material interests in investments accounted for using the equity method.
(in EUR million) | 2024 | 2023 | ||
|---|---|---|---|---|
Joint | Associates | Joint | Total | |
Balance Sheet | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Current assets | 40.9 | 26.0 | 28.0 | 54.0 |
Non-current assets | 350.5 | 149.1 | 397.1 | 546.2 |
Current liabilities | (121.1) | (61.1) | (112.3) | (173.4) |
Non-current liabilities | (223.6) | (86.8) | (245.6) | (332.4) |
Equity/Net assets at 100% | 46.7 | 27.2 | 67.2 | 94.4 |
Group Carrying value | 28.8 | 9.5 | 23.9 | 33.4 |
\u00a0
The loans to investments accounted for using the equity method are accounted for at amortised cost (less impairment):
(in EUR million) | 2024 | \u00a0 | 2023 | |||
|---|---|---|---|---|---|---|
Associates | Joint Ventures | Total | Associates | Joint Ventures | Total | |
Loan to associates and joint ventures | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Balance as at 1\u00a0January | 2.0 | 39.5 | 41.5 | \u2212 | \u2212 | \u2212 |
Addition | \u2212 | \u2212 | \u2212 | 2.0 | \u2212 | 2.0 |
Repayment | (2.0) | (39.5) | (41.5) | \u2212 | (39.0) | (39.0) |
Scope changes | \u2212 | \u2212 | \u2212 | \u2212 | 78.5 | 78.5 |
Balance as at 31\u00a0December | \u2212 | \u2212 | \u2212 | 2.0 | 39.5 | 41.5 |
\u00a0
The credit facilities of EUR\u00a041.5\u00a0million advanced as of 31\u00a0December 2023 to investments accounted for using the equity have been fully repaid.
\u00a0
Non-controlling interests in the consolidated balance sheet and statement of changes in equity are as follows:
(in EUR million) | Total |
|---|---|
Balance as at 1\u00a0January 2023 | 36.8 |
Currency translation differences | 0.1 |
Net income\u00a0(1) | 27.9 |
Dividends | (8.6) |
Scope change | 506.2 |
Dividend payment on AT1 capital | (36.9) |
Balance as at 31\u00a0December 2023 | 525.6 |
Currency translation differences | (0.1) |
Net income\u00a0(1) | 26.6 |
Dividends | (6.4) |
Scope change | 0.1 |
Settlement of AT1 capital | (500.0) |
Dividend payment on AT1 capital | (18.4) |
Balance as at 31\u00a0December 2024 | 27.2 |
|
\u00a0
At the acquisition date 22\u00a0May 2023, the acquired net assets of LeasePlan include AT1 capital for EUR\u00a0513\u00a0million recorded in scope change line (including EUR\u00a018.4\u00a0million of accrued interest) which was previously issued by LeasePlan Corporation NV in 2019. These capital securities qualified as an equity instrument and were undated, deeply subordinated, resettable and callable until their redemption on 29\u00a0May 2024. There was a fixed interest coupon of 7.375% per annum, payable semi-annually. The interest payment for 2024 amounted to EUR\u00a018.4\u00a0million.
\u00a0 Ayvens SA (formerly known as ALD International\u00a0SA) Consolidated companies under global integration | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Parent company | Parent company | |
interest % | interest % | |
ALD Autoleasing Deutschland GmbH\u00a0\u2013 GERMANY (1) | 100.00 | 100.00 |
ALD Automotive A/S\u00a0\u2013 DENMARK | 100.00 | 100.00 |
ALD Automotive\u00a0AB\u00a0\u2013 SWEDEN | 100.00 | 100.00 |
ALD Automotive\u00a0AG\u00a0\u2013 SWITZERLAND | 100.00 | 100.00 |
ALD Automotive Algerie\u00a0SPA | 100.00 | 100.00 |
ALD Automotive DOO BEOGRAD\u00a0\u2013 SERBIA | 100.00 | 100.00 |
ALD Automotive DOO ZA Operativni i Financijski Leasing\u00a0\u2013 CROATIA (1) | 100.00 | 100.00 |
ALD Automotive Eesti\u00a0AS\u00a0\u2013 ESTONIA | 75.01 | 75.01 |
ALD Automotive EOOD\u00a0\u2013 BULGARIA | 100.00 | 100.00 |
ALD Automotive Euro Leasing BV | 50.10 | 50.10 |
ALD Automotive for Cars Rental and Fleet Management\u00a0SAE\u00a0\u2013 EGYPT | 100.00 | 100.00 |
ALD Automotive Fuhrparkmanagement und Leasing\u00a0GmbH\u00a0\u2013 AUSTRIA | 100.00 | 100.00 |
ALD Automotive Group Limited\u00a0\u2013 UK (1) | 100.00 | 100.00 |
ALD Automotive Italia s.r.l | 100.00 | 100.00 |
ALD Automotive Limitada\u00a0\u2013 CHILE | 100.00 | 100.00 |
ALD Automotive Magyarorszag Autopark\u00a0\u2013 kezelo es Finanszirozo KFT\u00a0\u2013 HUNGARY (1) | 100.00 | 100.00 |
ALD Automotive Operational Leasing DOO\u00a0\u2013 SLOVENIA | 100.00 | 100.00 |
ALD Automotive Peru\u00a0SAC | 100.00 | 100.00 |
ALD Automotive Polska Sp z o.o.\u00a0\u2013 POLAND | 100.00 | 100.00 |
ALD Automotive Private Limited\u00a0\u2013 INDIA | 100.00 | 100.00 |
ALD Automotive\u00a0SA\u00a0\u2013 BRAZIL | 100.00 | 100.00 |
ALD Automotive\u00a0SA de CV\u00a0\u2013 MEXICO | 100.00 | 100.00 |
ALD Automotive\u00a0SAS\u00a0\u2013 COLOMBIA | 100.00 | 100.00 |
ALD Automotive SAU\u00a0\u2013 SPAIN (1) | 100.00 | 100.00 |
ALD Automotive SIA\u00a0\u2013 LATVIA | 75.00 | 75.00 |
ALD Automotive Slovakia SRO | 100.00 | 100.00 |
ALD Automotive SRL\u00a0\u2013 ROMANIA | 100.00 | 100.00 |
ALD Automotive SRO\u00a0\u2013 CZECH REPUBLIC | 100.00 | 100.00 |
ALD Automotive Ukraine Limited Liability Company | 100.00 | 100.00 |
ALD Fleet\u00a0SA de CV SOFOM ENR | 100.00 | 100.00 |
ALD International\u00a0SAS & CO KG (1) | 100.00 | 100.00 |
ALD Mul Mobility Services Malaysia SND BHD\u00a0\u2013 MALAYSIA | 60.00 | 60.00 |
ALD Re Designated Activity Company\u00a0\u2013 IRELAND | 100.00 | 100.00 |
Axus Finland\u00a0OY | 100.00 | 100.00 |
Axus Luxembourg SA | 100.00 | 100.00 |
Axus Nederland N.V. (1) (including merged entity Leaseplan Nederland N.V.) | 100.00 | 100.00 |
Axus SA NV\u00a0\u2013 BELGIUM (1) | 100.00 | 100.00 |
Ayvens Bank N.V. (formerly know as LeasePlan Corporation N.V.)\u00a0 | 100.00 | 100.00 |
Ayvens INS (including merged entities \u00a0ALD Insurance and Euro Insurances DAC trading as LeasePlan Insurance) | 100.00 | 100.00 |
Ayvens Ireland Limited (formerly know as LeasePlan Fleet Management Services Ireland Ltd.) | 100.00 | 100.00 |
Ayvens Norge AS (formerly know as LeasePlan Norge A/S) | 100.00 | 100.00 |
Inula Holding UK\u00a0Ltd. | 100.00 | 100.00 |
LeasePlan Brasil\u00a0Ltda. | 100.00 | 100.00 |
LeasePlan (Schweiz)\u00a0AG | 100.00 | 100.00 |
LeasePlan Arrendamento Mercantil\u00a0SA | 100.00 | 100.00 |
LeasePlan Danmark A/S | 100.00 | 100.00 |
LeasePlan Deutschland\u00a0GmbH (including merged entity Fleetpool Holding GmbH) | 100.00 | 100.00 |
LeasePlan Digital B.V. | 100.00 | 100.00 |
LeasePlan Finance B.V. | 100.00 | 100.00 |
LeasePlan Fleet Management (Polska) Sp. z.o.o. | 100.00 | 100.00 |
LeasePlan Fleet Management nv (1) | 100.00 | 100.00 |
LeasePlan Global B.V. | 100.00 | 100.00 |
LeasePlan Group B.V. | 100.00 | 100.00 |
LeasePlan Hellas Commercial\u00a0SA (including merged entity ALD Automotive SA LEase of Cars - GREECE) | 100.00 | 100.00 |
LeasePlan Hung\u00e1ria G\u00e9pj\u00e1rmupark Kezelo \u00e9s Finansz | 100.00 | 100.00 |
LeasePlan India Private\u00a0Ltd. | 100.00 | 100.00 |
LeasePlan Information Services\u00a0Ltd | 100.00 | 100.00 |
LeasePlan Italia\u00a0SpA | 100.00 | 100.00 |
LeasePlan Mexico\u00a0SA de CV | 100.00 | 100.00 |
LeasePlan \u00d6sterreich Fuhrparkmanagement\u00a0GmbH | 100.00 | 100.00 |
LeasePlan Otomotiv Servis ve Ticaret\u00a0AS (including merged entity ALD Automotive Turizm Ticaret Anonim Sirketi\u00a0\u2013 TURKEY) | 100.00 | 100.00 |
LeasePlan Portugal Comercio e Aluguer de Automov | 100.00 | 100.00 |
LeasePlan Romania SRL | 100.00 | 100.00 |
LeasePlan Servicios,\u00a0SA | 100.00 | 100.00 |
LeasePlan Slovakia, s.r.o. | 100.00 | 100.00 |
LeasePlan Sverige\u00a0AB | 100.00 | 100.00 |
NF Fleet A/S\u00a0\u2013 DENMARK | 80.00 | 80.00 |
NF fleet\u00a0AB\u00a0\u2013 SWEDEN | 80.00 | 80.00 |
NF Fleet\u00a0AS\u00a0\u2013 NORWAY | 80.00 | 80.00 |
NF Fleet\u00a0OY\u00a0\u2013 FINLAND | 80.00 | 80.00 |
Soluciones De Renting Movilidad SL | 100.00 | 100.00 |
TEMSYS\u00a0\u2013 France (1) (incuding merged entity LeasePlan France SAS) | 100.00 | 100.00 |
UAB ALD Automotive\u00a0\u2013 LITHUANIA | 75.00 | 75.00 |
UK FFM | 50.10 | 50.10 |
LeasePlan Russia LLC | \u2212 | 100.00 |
ALD Automotive LLC \u2013 BELARUS | \u2212 | 100.00 |
Investments accounted for using the equity method (2) | \u00a0 | \u00a0 |
Flottenmanagement GmbH | 49.00 | 49.00 |
LeasePlan Emirates L.L.C. | 49.00 | 49.00 |
PLease S.C.S. | 99.00 | 99.00 |
Maroc ALD Automotive SA | \u2212 | 35.00 |
|
In March\u00a02024, Ayvens obtained the Declaration of No-Objection (DNO) from both the European Central Bank and the Dutch National Bank. The DNO allows the Group to merge ALD and LeasePlan\u2019s activities and is an important step forward in the journey towards integration to become \u201cone\u201d. Consequently, the shares of almost all LeasePlan entities have been transferred in a phased approach from LeasePlan Corporation NV to Ayvens\u00a0SA with remaining few to be transferred in 2025. Once this is completed, Ayvens\u00a0SA will, directly or indirectly, own all operating entities, ultimately allowing it to simplify and streamline the corporate governance, processes and business activities, particularly in the 20 overlapping countries where both entities are present.
At 31\u00a0December 2024, all companies are fully consolidated, except three companies accounted for using the equity method. For more details, please refer to Note\u00a018, Investments in associates and jointly controlled entities. Changes in the scope of consolidation compared to 31\u00a0December 2023 are as follows:
Subsidiaries are all entities which the Group controls. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.
Inter-company transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses are also eliminated. When necessary, amounts reported by subsidiaries have been adjusted to conform to the Group\u2019s accounting policies.
For non-wholly owned subsidiaries, non-controlling interests are presented in equity separately from the equity attributable to shareholders of the Group. Profit or loss and other comprehensive income are attributed to the shareholders of the Group and to non-controlling interests even if this results in the non-controlling interests having a deficit balance. Changes in ownership interest in subsidiaries that do not result in a change in control are accounted for in equity. The carrying amounts of the controlling and non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiary. Any difference between the amount by which the non-controlling interest is adjusted and the fair value of the consideration paid or received is recorded directly in equity and attributed to the shareholders of the Group.
\u00a0
Non-controlling interests in the consolidated balance sheet and statement of changes in equity are as follows:
(in EUR million) | Total |
|---|---|
Balance as at 1\u00a0January 2023 | 36.8 |
Currency translation differences | 0.1 |
Net income\u00a0(1) | 27.9 |
Dividends | (8.6) |
Scope change | 506.2 |
Dividend payment on AT1 capital | (36.9) |
Balance as at 31\u00a0December 2023 | 525.6 |
Currency translation differences | (0.1) |
Net income\u00a0(1) | 26.6 |
Dividends | (6.4) |
Scope change | 0.1 |
Settlement of AT1 capital | (500.0) |
Dividend payment on AT1 capital | (18.4) |
Balance as at 31\u00a0December 2024 | 27.2 |
|
\u00a0
At the acquisition date 22\u00a0May 2023, the acquired net assets of LeasePlan include AT1 capital for EUR\u00a0513\u00a0million recorded in scope change line (including EUR\u00a018.4\u00a0million of accrued interest) which was previously issued by LeasePlan Corporation NV in 2019. These capital securities qualified as an equity instrument and were undated, deeply subordinated, resettable and callable until their redemption on 29\u00a0May 2024. There was a fixed interest coupon of 7.375% per annum, payable semi-annually. The interest payment for 2024 amounted to EUR\u00a018.4\u00a0million.
\u00a0 Ayvens SA (formerly known as ALD International\u00a0SA) Consolidated companies under global integration | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Parent company | Parent company | |
interest % | interest % | |
ALD Autoleasing Deutschland GmbH\u00a0\u2013 GERMANY (1) | 100.00 | 100.00 |
ALD Automotive A/S\u00a0\u2013 DENMARK | 100.00 | 100.00 |
ALD Automotive\u00a0AB\u00a0\u2013 SWEDEN | 100.00 | 100.00 |
ALD Automotive\u00a0AG\u00a0\u2013 SWITZERLAND | 100.00 | 100.00 |
ALD Automotive Algerie\u00a0SPA | 100.00 | 100.00 |
ALD Automotive DOO BEOGRAD\u00a0\u2013 SERBIA | 100.00 | 100.00 |
ALD Automotive DOO ZA Operativni i Financijski Leasing\u00a0\u2013 CROATIA (1) | 100.00 | 100.00 |
ALD Automotive Eesti\u00a0AS\u00a0\u2013 ESTONIA | 75.01 | 75.01 |
ALD Automotive EOOD\u00a0\u2013 BULGARIA | 100.00 | 100.00 |
ALD Automotive Euro Leasing BV | 50.10 | 50.10 |
ALD Automotive for Cars Rental and Fleet Management\u00a0SAE\u00a0\u2013 EGYPT | 100.00 | 100.00 |
ALD Automotive Fuhrparkmanagement und Leasing\u00a0GmbH\u00a0\u2013 AUSTRIA | 100.00 | 100.00 |
ALD Automotive Group Limited\u00a0\u2013 UK (1) | 100.00 | 100.00 |
ALD Automotive Italia s.r.l | 100.00 | 100.00 |
ALD Automotive Limitada\u00a0\u2013 CHILE | 100.00 | 100.00 |
ALD Automotive Magyarorszag Autopark\u00a0\u2013 kezelo es Finanszirozo KFT\u00a0\u2013 HUNGARY (1) | 100.00 | 100.00 |
ALD Automotive Operational Leasing DOO\u00a0\u2013 SLOVENIA | 100.00 | 100.00 |
ALD Automotive Peru\u00a0SAC | 100.00 | 100.00 |
ALD Automotive Polska Sp z o.o.\u00a0\u2013 POLAND | 100.00 | 100.00 |
ALD Automotive Private Limited\u00a0\u2013 INDIA | 100.00 | 100.00 |
ALD Automotive\u00a0SA\u00a0\u2013 BRAZIL | 100.00 | 100.00 |
ALD Automotive\u00a0SA de CV\u00a0\u2013 MEXICO | 100.00 | 100.00 |
ALD Automotive\u00a0SAS\u00a0\u2013 COLOMBIA | 100.00 | 100.00 |
ALD Automotive SAU\u00a0\u2013 SPAIN (1) | 100.00 | 100.00 |
ALD Automotive SIA\u00a0\u2013 LATVIA | 75.00 | 75.00 |
ALD Automotive Slovakia SRO | 100.00 | 100.00 |
ALD Automotive SRL\u00a0\u2013 ROMANIA | 100.00 | 100.00 |
ALD Automotive SRO\u00a0\u2013 CZECH REPUBLIC | 100.00 | 100.00 |
ALD Automotive Ukraine Limited Liability Company | 100.00 | 100.00 |
ALD Fleet\u00a0SA de CV SOFOM ENR | 100.00 | 100.00 |
ALD International\u00a0SAS & CO KG (1) | 100.00 | 100.00 |
ALD Mul Mobility Services Malaysia SND BHD\u00a0\u2013 MALAYSIA | 60.00 | 60.00 |
ALD Re Designated Activity Company\u00a0\u2013 IRELAND | 100.00 | 100.00 |
Axus Finland\u00a0OY | 100.00 | 100.00 |
Axus Luxembourg SA | 100.00 | 100.00 |
Axus Nederland N.V. (1) (including merged entity Leaseplan Nederland N.V.) | 100.00 | 100.00 |
Axus SA NV\u00a0\u2013 BELGIUM (1) | 100.00 | 100.00 |
Ayvens Bank N.V. (formerly know as LeasePlan Corporation N.V.)\u00a0 | 100.00 | 100.00 |
Ayvens INS (including merged entities \u00a0ALD Insurance and Euro Insurances DAC trading as LeasePlan Insurance) | 100.00 | 100.00 |
Ayvens Ireland Limited (formerly know as LeasePlan Fleet Management Services Ireland Ltd.) | 100.00 | 100.00 |
Ayvens Norge AS (formerly know as LeasePlan Norge A/S) | 100.00 | 100.00 |
Inula Holding UK\u00a0Ltd. | 100.00 | 100.00 |
LeasePlan Brasil\u00a0Ltda. | 100.00 | 100.00 |
LeasePlan (Schweiz)\u00a0AG | 100.00 | 100.00 |
LeasePlan Arrendamento Mercantil\u00a0SA | 100.00 | 100.00 |
LeasePlan Danmark A/S | 100.00 | 100.00 |
LeasePlan Deutschland\u00a0GmbH (including merged entity Fleetpool Holding GmbH) | 100.00 | 100.00 |
LeasePlan Digital B.V. | 100.00 | 100.00 |
LeasePlan Finance B.V. | 100.00 | 100.00 |
LeasePlan Fleet Management (Polska) Sp. z.o.o. | 100.00 | 100.00 |
LeasePlan Fleet Management nv (1) | 100.00 | 100.00 |
LeasePlan Global B.V. | 100.00 | 100.00 |
LeasePlan Group B.V. | 100.00 | 100.00 |
LeasePlan Hellas Commercial\u00a0SA (including merged entity ALD Automotive SA LEase of Cars - GREECE) | 100.00 | 100.00 |
LeasePlan Hung\u00e1ria G\u00e9pj\u00e1rmupark Kezelo \u00e9s Finansz | 100.00 | 100.00 |
LeasePlan India Private\u00a0Ltd. | 100.00 | 100.00 |
LeasePlan Information Services\u00a0Ltd | 100.00 | 100.00 |
LeasePlan Italia\u00a0SpA | 100.00 | 100.00 |
LeasePlan Mexico\u00a0SA de CV | 100.00 | 100.00 |
LeasePlan \u00d6sterreich Fuhrparkmanagement\u00a0GmbH | 100.00 | 100.00 |
LeasePlan Otomotiv Servis ve Ticaret\u00a0AS (including merged entity ALD Automotive Turizm Ticaret Anonim Sirketi\u00a0\u2013 TURKEY) | 100.00 | 100.00 |
LeasePlan Portugal Comercio e Aluguer de Automov | 100.00 | 100.00 |
LeasePlan Romania SRL | 100.00 | 100.00 |
LeasePlan Servicios,\u00a0SA | 100.00 | 100.00 |
LeasePlan Slovakia, s.r.o. | 100.00 | 100.00 |
LeasePlan Sverige\u00a0AB | 100.00 | 100.00 |
NF Fleet A/S\u00a0\u2013 DENMARK | 80.00 | 80.00 |
NF fleet\u00a0AB\u00a0\u2013 SWEDEN | 80.00 | 80.00 |
NF Fleet\u00a0AS\u00a0\u2013 NORWAY | 80.00 | 80.00 |
NF Fleet\u00a0OY\u00a0\u2013 FINLAND | 80.00 | 80.00 |
Soluciones De Renting Movilidad SL | 100.00 | 100.00 |
TEMSYS\u00a0\u2013 France (1) (incuding merged entity LeasePlan France SAS) | 100.00 | 100.00 |
UAB ALD Automotive\u00a0\u2013 LITHUANIA | 75.00 | 75.00 |
UK FFM | 50.10 | 50.10 |
LeasePlan Russia LLC | \u2212 | 100.00 |
ALD Automotive LLC \u2013 BELARUS | \u2212 | 100.00 |
Investments accounted for using the equity method (2) | \u00a0 | \u00a0 |
Flottenmanagement GmbH | 49.00 | 49.00 |
LeasePlan Emirates L.L.C. | 49.00 | 49.00 |
PLease S.C.S. | 99.00 | 99.00 |
Maroc ALD Automotive SA | \u2212 | 35.00 |
|
The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. All valuation methods are defined in the Notes describing the relevant categories. These policies have been consistently applied to all the years presented, unless otherwise stated.
The Group\u2019s audited consolidated financial statements as at 31\u00a0December 2024, were authorised for issue by the Board of Directors on 21 March 2025.\u00a0The consolidated financial statements of the Group have been prepared in accordance with International Financial Reporting Standards (IFRS) and interpretations issued by the IFRS\u00a0Interpretations Committee (IFRS\u00a0IC) applicable to companies reporting under IFRS as endorsed by the European Union.
The consolidated financial statements are in millions of euros, which is the Group\u2019s presentation currency and values are rounded to the nearest million, unless otherwise indicated. In certain cases, rounding may cause non-material discrepancies in the lines and columns showing totals.
Upon the acquisition of LeasePlan, which holds a banking license allowing it to collect deposits under the Dutch deposit guarantee scheme, the Group has obtained from the European Central Bank (ECB) the regulated status as a Financial Holding Company (\u201cFHC\u201d).\u00a0
The balance sheet of the Group, its cash flows, liquidity position and borrowing facilities are set out in the Group financial statements and Notes to the financial statements. Further details of our policy on financial risk management are set out in Note\u00a05 to the financial statements. The Group\u2019s net debt at 31\u00a0December 2024 was EUR\u00a049.0\u00a0billion (2023: EUR\u00a045.4\u00a0billion) and the Group liquidity position (defined as cash and undrawn committed facilities) of EUR\u00a06.2\u00a0billion at 31\u00a0December 2024 remains strong (2023: EUR\u00a05.6\u00a0billion). Details of borrowings and facilities are set out in Note\u00a029.
The Board is satisfied that the Group\u2019s forecasts and projections, taking account of reasonably possible changes in trading performance, show that the Group will be able to operate within the level of its current facilities for a period of at least 12\u00a0months from the date of approval of the financial statements. For this reason, the Group continues to adopt the going concern basis in preparing of its financial statements.
\u00a0
On 16\u00a0March 2022, the International Practices Task Force of the Centre for Audit Quality, a standard reference for identifying countries with hyperinflation, published a working paper including Turkey in the list of hyperinflationary economies. Consequently, from 1\u00a0January 2022 onwards, the Group has been applying the provisions of the IAS\u00a029\u00a0standard (\u201cFinancial Reporting in Hyperinflationary Economies\u201d) to the Group\u2019s Turkish subsidiaries. The financial statements include restatements for changes in the general purchasing power of the Turkish lira to the measuring unit current at the reporting date.
Adjustments are made to the non-monetary assets and liabilities (with biggest impacts in Rental fleet, and the Group Consolidated Reserves pertaining to the subsidiaries in Turkey). The carrying amounts of Rental fleet are adjusted to reflect the change in the consumer price index (CPI) during 2024. The Turkish consumer price index has been used to calculate the adjustments relating to the inflation.
\u00a0
The development of the CPI index in the current and previous reporting periods is as follows:
\u00a0 | 12/2021 | 12/2022 | 12/2023 | 12/2024 |
|---|---|---|---|---|
Conversion coefficient | 687.00 | 1,128.50 | 1,859.40 | 2,684.60 |
CPI Index (12\u00a0months) | 36.08 | 64.27 | 64.77 | 44.38 |
\u00a0
The financial statements of the Turkish subsidiaries are based on a historic cost. Non-monetary items in the financial statements have been restated for the change in CPI from the date of their acquisition or initial recognition to the end of the reporting period.
Gains or losses on all subsequent hyperinflation adjustments, such as restatement of non-monetary assets and liabilities, restatement of income and expenses at transaction date and the counterpart of restatement all components of equity from the beginning of the period, are recognised in the income statement in \u201cUnrealised gains and losses on financial instruments and other\u201d. An impairment loss will be recognised in the income statement if the restated amount of the book value of vehicles exceeds their estimated recoverable amount, and these are recognised in the income statement in \u201cLeasing costs \u2013 depreciation\u201d. Restatement of all components of equity is recorded in the hyperinflation reserve which is reclassified to the translation reserves related to the Turkish subsidiaries upon consolidation. Reclassification is done on the basis of the economic interrelationship between the changes in exchange rates and inflation (i.e. as prices measured in hyperinflationary currency increase, their value against other currencies tends to decrease at a rate that reflects the excess of price inflation in the hyperinflationary currency compared to price inflation in other currencies).
All items in the statement of cash flows which relate to the Turkish subsidiaries are expressed in terms of the consumer price index at the end of the reporting period.
During 2023, the impact of the hyperinflation accounting on intercompany accounts has triggered inconsistencies between the reported amount by Turkey and the other group subsidiaries, mainly due to FX rates. This mismatch was presented as part of the currency translation adjustment position and had a total value of EUR\u00a011.3\u00a0million. During 2024, this value plus an additional one of EUR\u00a00.8\u00a0million, was reclassified from currency translation adjustment to profit of the period because of the change in the reporting process of the parent. In addition, the impact of hyperinflation in the intercompany profit or loss accounts is removed against the gains or losses from net monetary items.
\u00a0
The preparation of the financial statements requires the management of both the Group and its subsidiaries to use certain estimates and assumptions that may have an impact on the reported values of assets, liabilities and contingent liabilities at the reporting date and on items of income and expense for the period.
The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ significantly from these estimates if different assumptions or circumstances apply.
Significant judgements made by the management in applying the Group\u2019s accounting policies and the key sources of estimation uncertainty are disclosed in Note\u00a04 Critical accounting estimates and judgements.
\u00a0
As part of the integration of LeasePlan and ALD, Ayvens Management also reviewed and updated the presentation of depreciation of rental fleet in the income statement.
From 31\u00a0December 2024, income statement caption \u201cUsed Car Sales result\u201d has been renamed to \u201cUsed Car Sales result and depreciation adjustments\u201d. The contents of this caption now include an assessment of residual values and prospective depreciation adjustments of the rental fleet which were reclassified from the caption \u201cLeasing costs \u2013 depreciation\u201d in the \u201cLeasing margin\u201d.
Residual value continues to be treated as an accounting estimate in accordance with IAS\u00a08 and is revised as part of the Group residual values assessment process and in accordance with the Group policy. Revision of residual values is by nature an anticipation of future Used Car Sales results. The Leasing margin, which is based on contractually agreed terms, is now presented excluding these market related revisions and changes in the depreciation costs as they are not derived from changes to contractual activities and do not impact contractually agreed rental payments from our customers. This presentation provides more relevance and transparency and will improve stakeholders\u2019 understanding and evaluation of the financial performance of the Group as well as comparability with industry competitors.
Depreciation adjustments from purchase price allocations performed for the acquisition accounting and a release of previous depreciation adjustments for the vehicles sold in the current reporting period have now been moved from \u201cCost of cars sold\u201d to a dedicated caption \u201cDepreciation adjustments\u201d within the same subtotal \u201cUsed Car Sales result and depreciation adjustments\u201d.
There has been a further reclassification of short-term rental fleet depreciation costs to \u201cCost of services revenues\u201d which was erroneously included in \u201cLeasing costs \u2013 depreciation\u201d in 2023, in total amount of EUR\u00a067.9\u00a0million.
Comparative period ending 31\u00a0December 2023 has been restated to reflect all the above changes. These restatements have no impact on the gross operating or Net income of the Group.
Impacts of all reclassifications to the Group\u2019s 2023 comparative amounts and changes in the presentation are disclosed below at the end of this section.
In 2024, management has decided to change the structure of the management oversight and monitoring, to reflect the change in responsibilities for the Group Regional Directors and Group Deputy CEOs after the Group restructuring following acquisition. The new management structure will now be governed by 4 regions (see allocation of countries below).\u00a0
The organisation of the supporting functions (Finance, HR and Risk) were also aligned to the new regions.\u00a0
The Group implemented this revised regional segmentation to align its internal management and reporting structure with its strategic priorities and evolving market presence and the synergies expected part of this new organisation. The four regions are considered as the operating segments as defined under IFRS\u00a08.
Previously, the Group\u2019s operations were segmented into the following four regions:
This structure has been replaced with a new regional segmentation:
The segment information for the prior reporting period has been restated to align to the new regional segmentation.
Following the restructuring of the Group\u2019s operating segments into four regions including how management views the various operations of the Group, the allocation of goodwill has been revised in alignment with the new regional segmentation.
Management decided that the goodwill will no longer be allocated at country level but at regional level. Therefore, historical goodwill has been reallocated to the 4 regions which correspond to the new groups of cash generating units.
For the LeasePlan goodwill, the Group used a relative value method based on the factors that have driven the valuation to allocate the goodwill to the aggregated CGUs.
Impairment testing for goodwill is now performed at the regional CGU level, reflecting the new segmentation. In terms of unit of account, the historic goodwill and the LeasePlan goodwill are tested as a whole, based on the region allocated. This level of unit of account, reflects the restructuring to one combined operating entity at regional level and the synergies achieved at regional level.
To ensure consistency with the new segment structure, comparative information on goodwill allocation has been restated. This restatement does not affect the total carrying amount of goodwill or previously reported financial results but reflects the updated allocation to the regional CGUs.
\u00a0
Goodwill allocation reported 2023 | 31\u00a0December 2023 Reported | New allocation |
|---|---|---|
France | 212.0 | Region 1 |
Germany | 35.2 | Region 4 |
Germany (Fleetpool) | 14.6 | Region 4 |
Italy | 50.2 | Region 2 |
Spain | 128.0 | Region 4 |
UK | 22.6 | Region 2 |
Benelux | 56.9 | Region 3 |
Nordics Hub | 18.3 | Region 3 |
South Eastern Europe Hub | 9.5 | Region 2 |
North Eastern Europe Hub | 1.4 | Region 3 |
Central Europe Hub | 31.5 | Region 4 |
LeasePlan | 1,548.1 | \u00a0 |
Total | 2,128.3 | \u00a0 |
\u00a0
Goodwill allocation restated 2023 | 31\u00a0December 2023 Restated |
|---|---|
Country | 212.0 |
LeasePlan | 455.6 |
Region 1 | 667.6 |
Country | 82.3 |
LeasePlan | 355.6 |
Region 2 | 437.9 |
Country | 76.6 |
LeasePlan | 462.7 |
Region 3 | 539.3 |
Country | 209.3 |
LeasePlan | 274.2 |
Region 4 | 483.5 |
Total | 2,128.3 |
\u00a0
The 31\u00a0December 2023 reported Goodwill include for Germany Fleetpool and for LeasePlan the Goodwill after the PPA update and error correction, refer to further details in the paragraph \u201cErrors\u201d below.
\u00a0\u00a0\u00a0\u00a0
In the UK, it was common practice for intermediaries to introduce business to financing companies and to receive a commission in return.
On 28\u00a0January 2021, the Financial Conduct Authority (FCA) banned the practice of Discretionary Commissions Arrangements (DCAs) which were commonly used in connection with regulated credit agreements. Under DCAs, the credit broker increased the interest rate paid by the customer and kept some or all of the difference between the rate set by the lender and what the customer paid, as a commission from the lender to the credit broker.
Following the Financial Ombudsman Service (FOS) decision in favour of complainants against lenders and regarding the use of DCAs on 10 January 2024, the FCA announced their review into historic DCAs on 11 January 2024. The FCA announce of their review was after the end of financial year 2023 but before the financial statements for this reporting period had been issued.
In accordance with IAS\u00a010, \u00a0events after the reporting period which provide evidence of conditions that existed at the end of the reporting period are considered as adjusting events. As all conditions for the recognition of a provision under IAS 37 were met, a provision should have been booked at end of financial year 2023.
We therefore consider the omission of a provision for motor finance commissions from the 2023 financial statements a prior period error, as per the IAS\u00a08 definition, for the Group. The Group recognised EUR\u00a069.3\u00a0million provision, of which EUR\u00a043.8\u00a0million related to the former LeasePlan UK and of which EUR\u00a025.5\u00a0million related to ALD UK.
In addition a provision regarding consumer law breaches relating to certain products (Employee Car Ownership Scheme) have been recognised for the amount of EUR\u00a024.5\u00a0million and other provisions for the amount of EUR\u00a05.2\u00a0million, all related to the former LeasePlan UK.\u00a0
The provisions relating to former LeasePlan UK were considered as a correction of error in the PPA and booked against the goodwill for an amount of \u00a0of EUR\u00a055.0\u00a0million and deferred tax for an amount of EUR\u00a018.5\u00a0million.
The ALD UK provision of EUR\u00a025.5\u00a0million has been charged to the cost of service revenues in the income statement of 2023. In addition a deferred tax has been recognised of EUR\u00a06.4\u00a0million.
Following the ruling by the Court of Appeal in October\u00a02024, the provision for motor finance commissions was increased to EUR\u00a093\u00a0million, through Profit or Loss, \u00a0to include car finance agreements involving non-discretionary commissions to cover for the extension of the scope.
In the first semester of 2024, a computational error in calculating depreciation of the vehicles (short-term rentals) was discovered in the subsidiary Fleetpool. The error resulted in an understatement of depreciation costs recognised in the 2023 income statement and a corresponding overstatement of the Rental fleet.
Due to the error mentioned above and other risks that were present but not fully assessed or included in the future discounted cash flows used in the 2023 impairment test, the Group recognised a further impairment of the goodwill in Fleetpool for EUR\u00a014.7\u00a0million, in addition to EUR\u00a023.7\u00a0million impairment recognised in the income statement in 2023.
Both errors have been accounted for in equity with a restatement of the closing amounts of goodwill and Rental fleet as at 31\u00a0December 2023.
Following the correction of impairment of goodwill in 2023, the Group reperformed a goodwill impairment test for Fleetpool with an updated business plan. The test resulted in the same recoverable amount of the subsidiary, hence no additional impairment of goodwill is required in 2024. The Group has completed the integration of Fleetpool\u2019s operations and technology in August\u00a02024, and Fleetpool is now part of Ayvens Germany.
In addition to the correction of the errors mentioned above, closing amounts of assets and liabilities as of 31\u00a0December 2023 were restated to reflect adjustments to the provisional allocations performed for the acquisition accounting.
(in EUR million) | Notes | 31\u00a0December 2023 Reported | Fair value adjustments (PPA update)\u00a0(1) | PPA update \u2013 amortisation and depreciation\u00a0(1) | Prior period error correction | 31\u00a0December 2023 Restated |
|---|---|---|---|---|---|---|
Rental fleet | 13 | 49,765.2 | 55.5 | (19.7) | (9.9) | 49,791.2 |
Goodwill | 16 | 1,990.9 | 152.1 | - | (14.7) | 2,128.2 |
Other intangible assets | 17 | 703.9 | (58.0) | - | - | 645.9 |
Investments in associates and jointly controlled entities | 18 | 56.7 | (23.3) | - | - | 33.4 |
Deferred tax assets | 12 | 314.5 | 44.7 | 5.1 | 6.4 | 370.8 |
Receivables from clients and financial institutions | 22, 23 | 7,648.6 | (13.5) | (1.1) | - | 7,634.0 |
Other assets | \u00a0 | 9,781.2 | - | - | - | 9,781.2 |
Total assets | \u00a0 | 70,261.1 | 157.5 | (15.7) | (18.2) | 70,384.8 |
Deferred tax liabilities | 12 | 1,294.9 | 9.3 | - | (3.2) | 1,301.1 |
Trade and other payables | 33 | 6,034.7 | 72.0 | - | - | 6,106.7 |
Provisions | 32 | 909.5 | 76.2 | - | 25.5 | 1,011.2 |
Other liabilities | \u00a0 | 50,670.3 | - | - | - | 50,670.3 |
Total liabilities | \u00a0 | 58,909.5 | 157.6 | - | 22.3 | 59,089.3 |
Equity | \u00a0 | 10,535.5 | - | - | - | 10,535.5 |
Net income 2023 | \u00a0 | 816.2 | 0.1 | (15.7) | (40.5) | 760.2 |
Total equity | \u00a0 | 11,351.7 | 0.1 | (15.7) | (40.5) | 11,295.7 |
|
\u00a0
(In EUR million) | Notes | For the period ended | PPA adjustments | Depreciation and goodwill impairment - Fleetpool | Prior period error correction | Change in presentation | Short-term rental fleet depreciation reclassification | For the period ended Restated |
|---|---|---|---|---|---|---|---|---|
Leasing revenues | 8a, 8d | 8,033.7 | (1.1) | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 8,032.6 |
Leasing costs - depreciation | 8a | (5,685.7) | \u00a0 | \u00a0 | \u00a0 | (553.2) | 67.9 | (6,171.0) |
Leasing costs - financing | 8a | (1,044.7) | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | (1,044.7) |
Unrealised gains/losses on financial instruments and\u00a0other | \u00a0 | (41.4) | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | (41.4) |
Leasing margin | \u00a0 | 1,261.9 | (1.1) | - | - | (553.2) | 67.9 | 775.5 |
Services revenues | 8b, 8d | 4,391.2 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 4,391.2 |
Cost of services revenues | 8b | (3,037.0) | \u00a0 | (9.9) | (25.5) | \u00a0 | (67.9) | (3,140.4) |
Services margin | \u00a0 | 1,354.2 | - | (9.9) | (25.5) | - | (67.9) | 1,250.9 |
Proceeds of cars sold | 8c, 8d | 6,458.8 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 6,458.8 |
Cost of cars sold | 8c | (6,109.3) | (19.7) | \u00a0 | \u00a0 | 748.6 | \u00a0 | (5,380.3) |
Depreciation costs adjustments | 8c | - | \u00a0 | \u00a0 | \u00a0 | (195.4) | \u00a0 | (195.4) |
Used car sales result and\u00a0depreciation adjustments | \u00a0 | 349.5 | (19.7) | \u00a0 | \u00a0 | 553.2 | \u00a0 | 883.1 |
Gross operating Income | \u00a0 | 2,965.6 | (20.8) | (9.9) | (25.5) | - | - | 2,909.5 |
Staff expenses | \u00a0 | (936.1) | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | (936.1) |
General and administrative expenses | \u00a0 | (519.5) | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | (519.5) |
Depreciation and amortisation | \u00a0 | (136.0) | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | (136.0) |
Total operating expenses | \u00a0 | (1,591.6) | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | (1,591.6) |
Impairment charges on receivables | \u00a0 | (70.7) | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | (70.7) |
Other income/(expense) | \u00a0 | (14.0) | \u00a0 | (14.7) | \u00a0 | \u00a0 | \u00a0 | (28.7) |
OPERATING RESULT | \u00a0 | 1,289.3 | (20.8) | (24.6) | (25.5) | \u00a0 | - | 1,218.5 |
Share of profit of associates and jointly controlled entities | \u00a0 | 6.4 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 6.4 |
Profit before tax | \u00a0 | 1,295.7 | (20.8) | (24.6) | (25.5) | \u00a0 | \u00a0 | 1,224.9 |
Income tax expense | 12 | (374.0) | 5.0 | 3.2 | 6.4 | \u00a0 | \u00a0 | (359.4) |
Profit for the period from continuing operations | \u00a0 | 921.7 | (15.8) | (21.4) | (19.1) | \u00a0 | \u00a0 | 865.5 |
Loss after tax for the period from\u00a0discontinued operations | \u00a0 | (77.6) | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | (77.6) |
NET INCOME | \u00a0 | 844.1 | (15.8) | (21.4) | (19.1) | - | - | 787.9 |
\u00a0
At 31\u00a0December 2024, all companies are fully consolidated, except three companies accounted for using the equity method. For more details, please refer to Note\u00a018, Investments in associates and jointly controlled entities. Changes in the scope of consolidation compared to 31\u00a0December 2023 are as follows:
\u00a0\u00a0\u00a0
\u00a0
The Group has adopted the following new standards, amendments and interpretations to published standards for the first time for the financial year starting on 1\u00a0January 2024:
Accounting standards, amendments or Interpretations | Adoption dates by The\u00a0European Union |
|---|---|
Classification of Liabilities as Current or Non-current\u00a0\u2013 Amendments to IAS\u00a01 | 1\u00a0January 2024 |
Lease Liability in a Sale and Leaseback\u00a0\u2013 Amendments to IFRS\u00a016 | 1\u00a0January 2024 |
Supplier Finance Arrangements\u00a0\u2013 Amendments to IAS\u00a07 and IFRS\u00a07 | 1\u00a0January 2024 |
\u00a0
The amendments listed above did not have any impact on the amounts recognised in prior periods and are not expected to significantly affect the current or future periods.
IASB publishes accounting standards, amendments and interpretations, some of which have not been adopted by the European Union as at 31\u00a0December 2024. They are required to be applied from annual periods beginning on 1\u00a0January 2025 at the earliest or on the date of their adoption by the European Union. They were therefore not applied by the Group as at 31\u00a0December 2024. These amendments are not expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions.
In April\u00a02024, the IASB issued a new Standard, IFRS\u00a018, Presentation and Disclosure in Financial statements, which replaces IAS\u00a01, Presentation of Financial Statements. The new Standard carries forward many requirements from IAS\u00a01 unchanged. IFRS\u00a018 is the culmination of the IASB\u2019s Primary Financial Statements project and introduces three sets of new requirements to improve companies\u2019 reporting of financial performance and give investors a better basis for analysing and comparing companies:
IFRS\u00a018 is effective for annual reporting periods beginning on or after 1\u00a0January 2027, with earlier application permitted. The Group is currently assessing the impact on its consolidated financial statements.
In August\u00a02023, the IASB issued amendments to IAS\u00a021. The amendments specify when a currency is exchangeable into another currency and when it is not, and how an entity determines the exchange rate to apply when a currency is not exchangeable. The amendments also require additional information to be disclosed when a currency is not exchangeable. The amendments are effective for annual periods beginning on or after 1\u00a0January 2025. The Group does not anticipate that the application of these amendments will have a significant effect on the future consolidated financial statements.
The International Accounting Standards Board (IASB) has issued \u201cAmendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS\u00a09 and IFRS\u00a07)\u201d. The amendments to IFRS\u00a09 include guidance on the classification of financial assets, including those with contingent features which can be ESG-linked features or other types of contingent features. As a result of amendments to IFRS\u00a07 companies will be required to provide additional disclosures on financial assets and financial liabilities that have certain contingent features. The amendments are effective for reporting periods beginning on or after 1\u00a0January 2026. These amendments are not expected to have an impact on the Group\u2019s consolidated financial statements since there are currently no financial assets with ESG-linked features or other contingent features. As this might change in the future the Group will monitor new financial assets for such features.
The International Accounting Standards Board (IASB) has issued Annual Improvements Volume\u00a011\u2019. Annual improvements provide a mechanism for the IASB to efficiently issue a collection of minor amendments to the Accounting Standards. In accordance with the IASB\u2019s due process as described in the IFRS Foundation Due Process Handbook, annual improvements are limited to changes that either clarify the wording in an Accounting Standard or correct relatively minor unintended consequences, oversights or conflicts between the requirements in the Accounting Standards. The amendments are effective for reporting periods beginning on or after 1\u00a0January 2026. Given the nature of the changes, the Group does not expect these changes to have a material impact on its future consolidated statements.
\u00a0\u00a0
The consolidated financial statements incorporate the financial statements of the Company and its subsidiaries as listed in Note\u00a041. Changes to the entities consolidated in the year ended 31\u00a0December 2024 are explained in Note\u00a03.1.
Subsidiaries are all entities which the Group controls. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.
Inter-company transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses are also eliminated. When necessary, amounts reported by subsidiaries have been adjusted to conform to the Group\u2019s accounting policies.
For non-wholly owned subsidiaries, non-controlling interests are presented in equity separately from the equity attributable to shareholders of the Group. Profit or loss and other comprehensive income are attributed to the shareholders of the Group and to non-controlling interests even if this results in the non-controlling interests having a deficit balance. Changes in ownership interest in subsidiaries that do not result in a change in control are accounted for in equity. The carrying amounts of the controlling and non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiary. Any difference between the amount by which the non-controlling interest is adjusted and the fair value of the consideration paid or received is recorded directly in equity and attributed to the shareholders of the Group.
\u00a0
The Group applies the acquisition method to account for business combinations.
The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred to the former owners of the Group acquired and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date in accordance with IFRS\u00a03. The Group recognises any non-controlling interest in the company acquired on an acquisition-by-acquisition basis, either at fair value or at the non-controlling interest\u2019s proportionate share of the recognised amounts of acquiree\u2019s identifiable net assets.
Acquisition-related costs are expensed as incurred.
\u00a0
Associates are investments over which the Group has significant influence, which is the power to participate in the financial and operating policy decisions of the investee, but without the ability to exercise control or joint control. Typically, the Group owns between 20% and 50% of the voting equity of its associates.
The Group accounts for its investment in associates using the equity method. The Group\u2019s share of profits or losses of associates is recognised in the consolidated statement of income and its share of other comprehensive income (loss) of associates is included in other comprehensive income.
Unrealised gains on transactions between the Group and an associate are eliminated to the extent of the Group\u2019s interest in the associate. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Dilution gains and losses arising from changes in interests in investments in associates are recognised in the consolidated statement of income.
\u00a0
Joint arrangements are arrangements in which the Group shares joint control with one or more parties. Joint control is the contractually agreed sharing of control of an arrangement, and exists only when decisions about the activities that significantly affect the arrangement\u2019s returns require the unanimous consent of the parties sharing control.
Judgement is required in determining this classification through an evaluation of the facts and circumstances arising from each individual arrangement. Joint arrangements are classified as either joint operations or joint ventures based on the rights and obligations of the parties to the arrangement. In joint operations, the parties have rights to the assets and obligations for the liabilities relating to the arrangement, whereas in joint ventures, the parties have rights to the net assets of the arrangement. The Group has assessed the nature of its joint arrangements and determined them to be joint ventures.
Investments in joint ventures are accounted for using the equity method of accounting except when classified as held for sale. The Group\u2019s share of associates\u2019 and joint ventures\u2019 Net income is based on their most recent audited financial statements or unaudited interim statements drawn up to the Group\u2019s balance sheet date. Accounting policies of the joint ventures are modified where necessary to ensure consistency with the policies adopted by the Group.
The total carrying values of investments in joint ventures represent the cost of each investment including the carrying value of goodwill, the share of post-acquisition retained earnings, any other movements in reserves and any long-term debt interests which in substance form part of the Group\u2019s net investment, less any cumulative impairments. The carrying values of associates and joint ventures are reviewed on a regular basis and if there is objective evidence that an impairment in value has occurred as a result of one or more events during the period, the investment is impaired. Investments which have been previously impaired are regularly reviewed for indicators of impairment reversal.
The Group\u2019s share of an associate\u2019s or joint venture\u2019s losses in excess of its interest in that associate or joint venture is not recognised unless the Group has an obligation to fund such losses. Unrealised gains arising from transactions with associates and joint ventures are eliminated against the investment to the extent of the Group\u2019s interest in the investee. Unrealised losses are eliminated in the same way, but only to the extent that there is no evidence of impairment.
\u00a0
Special purpose companies are companies created to accomplish a narrow and well-defined objective, such as the securitisation of leased assets. Details of our asset-backed securitisation programme are described in Note\u00a029 that involve the sale of future lease receivables and related residual value receivables to special purpose companies.
The financial statements of special purpose companies are included in the Group\u2019s consolidated financial statements where the substance of the relationship is that the Group continues to be exposed to risks and rewards from the securitised leased assets. The Group uses various legal entities, which have been incorporated specifically for the Group\u2019s securitisation transactions. These companies are consolidated in the financial statements of the Group based on the substance of the relationship.
\u00a0
Items included in the financial statements of each of the Group\u2019s entities are measured using the currency of the primary economic environment in which the entity operates (\u201cthe functional currency\u201d). The consolidated financial statements are presented in millions of euros, which is the Group\u2019s presentation currency and it has been rounded to the nearest million, unless otherwise indicated. In certain cases, rounding may cause non-material discrepancies in the lines and columns showing totals.
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement, except when deferred in other comprehensive income as qualifying cash flow hedges and qualifying net investment hedges. Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the income statement within \u201cInterest income or charges\u201d. All other foreign exchange gains and losses are presented in the income statement also within \u201cLeasing margin\u201d.
\u00a0
The results and financial position of all the Group entities (apart from those that operate in a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:
Exchange differences on foreign currency balances with foreign operations for which settlement is neither planned nor likely to occur in the foreseeable future, and therefore form part of the Group\u2019s net investment in these foreign operations, are offset in the cumulative translation adjustment reserve. Cumulative translation differences are recycled from equity and recognised as income or expense on disposal of the operation to which they relate.
Fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate. Exchange differences arising are recognised in comprehensive income.
The accounts of the subsidiary in Turkey, which operates in a hyperinflationary economy, have been translated wholly at the closing rate, as per the requirements of IAS\u00a029.
\u00a0
The main exchange rates used in the consolidated financial statements for the years ended 31\u00a0December 2024 and 31\u00a0December 2023 are based on Paris stock exchange rates and are as follows:
\u00a0 | 31\u00a0December 2024 | 31\u00a0December 2023 | ||
|---|---|---|---|---|
Period-end Rate | Average Rate | Period-end Rate | Average Rate | |
EUR/UK Pound | 0.8292 | 0.8466 | 0.8691 | 0.8699 |
EUR/Turkish Lira | 36.7372 | 35.5649 | 32.6531 | 32.6531 |
EUR/Brazilian Real | 6.4253 | 5.8268 | 5.3618 | 5.4016 |
EUR/Czech Koruna | 25.1850 | 25.1194 | 24.7240 | 24.0006 |
EUR/Swedish Krona | 11.4590 | 11.4307 | 11.0960 | 11.4728 |
EUR/Norwegian Krone | 11.7950 | 11.6268 | 11.2405 | 11.4243 |
EUR/Danish Krone | 7.4578 | 7.4589 | 7.4529 | 7.4510 |
\u00a0\u00a0
Ordinary shares are classified as equity. Dividends are recognised as a liability in the balance sheet after approval of the profit distribution by the shareholders.
The proceeds of the issue of AT1 capital securities are available to the Group in perpetuity and are undated, deeply subordinated, resettable and callable. As the payment of distributions is wholly discretionary, the proceeds received and interest coupon paid on these securities are recognised in equity. As there is no formal obligation to reimburse the principal amount or to pay interest, the capital securities are recognised as equity and the distributions paid on these instruments, as well as the transaction costs related to the issuance of the capital securities, are recognised directly in equity.
\u00a0
As a lessor the Group is required to determine at the inception of each lease contract whether the lease arrangement is an operating lease or finance lease. This assessment considers the substance of the transaction rather than the form of the contract and classification is based on the extent to which the lease transfers the risks and rewards incidental to ownership of the underlying asset. A lease is classified as a finance lease if it transfers substantially all the risks and rewards from ownership of an asset. Conversely, an operating lease is a lease that does not transfer substantially all the risks and rewards from the ownership of an asset.
Various criteria are used to determine the lease classification of which the three most important are:
The Group as a lessor presents the assets subject to operating leases under \u201cRental fleet\u201d in the balance sheet and mainly includes vehicles under operating leases, vehicles under short term rental contracts (less than 1\u00a0year) and available for rental vehicles.
The Group leases assets to its customers for durations that normally range between three to five years. In almost all cases, the leased assets are returned to the Group at the end of the contract term. In case of early termination in most of the cases there will be a settlement invoice considering amendments. Under the operating lease classification, the customers are offered various products that have different contractual terms, but where ultimately the risks and rewards incidental to ownership are retained by the Group. A customer may be entitled to receive a portion of the net positive result from factors that have resulted in the vehicle being above its expected residual value and/or better RMT results at the end of the lease. However, any negative result risk will still be borne by the Group.
Monthly fixed operating lease fees charged to the customer for the use of the vehicle over the duration of the contract period can comprise various components each having its own revenue recognition. Any unpaid lessee receivables are recorded in the balance sheet as \u201cLease receivables from customers\u201d. See the Revenue recognition policy in Note\u00a03.4.20 for more details.
Assets under Operating lease and Rental fleet are measured at cost less accumulated depreciation and impairment losses. The cost of the operating lease cars comprises their purchase price and any incremental and directly attributable costs of bringing the assets held for use in operating leases to working condition for its intended use (e.g. smart phone integration, anti-theft devices, etc.). Import duties and non-refundable purchase taxes are included in the purchase price and any trade discounts are deducted when calculating the purchase price. Incremental direct costs may include commissions, legal fees and delivery cost where material. Furthermore, lease incentives and volume bonuses are also taken into account and depreciated over the expected lease term. The carrying amount of the Operating lease portfolio is presented in the category \u201cRental fleet\u201d on the balance sheet.
The operating lease and other leased car assets are depreciated on a straight-line basis over the estimated useful life (normally the contract period for operating leases) to their estimated residual value. The residual value and the useful life of the leased assets are reviewed at least at each financial year-end and, if expectations differ from previous estimates, the changes are accounted for prospectively as a change in accounting estimate (so-called prospective depreciation). Depreciation is recognised in the income statement as part of the \u201cLease margin\u201d or \u201cUsed car sales\u201d result for depreciation adjustments in relation to any prospective depreciation adjustments.
Depreciation is not applied to new vehicles available for lease when these vehicles are not in the condition to be leased to customers. This often applies to vehicles bought for signed lease contracts or vehicles bought with the intention to lease that are temporary stored and not ready to be used.
For the impairment accounting policy refer to Note\u00a04.3 Impairment of rental fleet. Upon termination of the lease or rental contract the relevant assets are reclassified to the caption \u201cInventories\u201d at their carrying amount if the intention is to sell the used car or remain within \u201cRental fleet\u201d if the intention is to lease the vehicle for another term.
Finance leases are recognised in the balance sheet at an amount equal to the present value of the minimum lease payments and the unguaranteed residual value, after deduction of provisions deemed necessary in respect of bad and doubtful debts and any accumulated impairment losses. Initial direct costs and down-payments that are not refundable security deposits are included in the initial measurement of the finance lease receivables. The assets are presented within the category \u201cLease receivables from customers\u201d on the balance sheet (See Note\u00a022 for further details).
The finance lease instalments can comprise various components each having its own revenue recognition. Both invoiced but unpaid amounts and unearned amounts for finance leases are recorded in the balance sheet line as \u201cLease receivables from customers\u201d. See the Revenue recognition policy in note\u00a03.4.20 for more details.
These services include arranging for vehicle delivery and administration of the title and registration process, as well as tax and insurance requirements, ensuring maintenance of the vehicle, pursuing warranty claims, providing fleet policy analysis and recommendations, benchmarking, and providing vehicle recommendations. Vehicles classified under this category are featured within the Off-Balance Sheet fleet and their related revenue is recognised within the Services revenue line.
\u00a0
Other property and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. Cost includes expenditures that are directly attributable to the acquisition of the asset. Subsequent expenditure on property and equipment is recognised in the carrying amount of the item only when it increases the future economic benefits embodied in the specific asset to which it relates, and its costs can be measured reliably. All other expenditure, including repairs and maintenance costs, are charged to the income statement during the period in which they are incurred.
Land is not depreciated. Depreciation on other assets is calculated using the straight-line method to allocate their cost to their residual values over their estimated useful lives, as follows:
When parts of an item of other property and equipment have different useful lives, they are accounted for as separate items (major components). The carrying amount of a replaced part is derecognised when replaced. Residual values, method of depreciation and useful lives of the assets are reviewed annually and adjusted if appropriate. In case of an indicator that an impairment could exist, an asset\u2019s carrying amount is written down immediately to its recoverable amount if the asset\u2019s carrying amount is greater than its estimated recoverable amount.
\u00a0
The lease period to be applied in determining the rental payments to be discounted will match the non- cancellable period of the lease adjusted for:
The measurement of the reasonable certainty of exercising or not exercising the extension or early termination options takes into account all the facts and circumstances that may create an economic incentive to exercise or not to exercise these options.
The Group recognises right-of-use assets at the commencement date of the lease (i.e. the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of the corresponding lease liability recognised, adjusted for any lease payments made at or before the lease commencement date, plus any initial direct costs incurred and an estimate of costs for dismantling, removing, or restoring the underlying asset and less any lease incentives received.
The right-of-use assets are depreciated over the lease term, defined as the non-cancellable period for which the lessee has the right to use an underlying asset including optional periods when an entity is reasonably certain to exercise an option to extend (or not to terminate) a lease. Depreciation expense is recorded in Depreciation and amortisation in the income statement.
At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of the expected future lease payments, calculated using the Group\u2019s incremental borrowing rate, adjusted to reflect the length of the lease and country of location.
Lease payments included in the lease liability consist of each of the following:
Variable leasing costs (other than those referred to above and including those linked to usage) and the costs of non-lease components are not included in the lease liability and are charged to Leasing costs as incurred.
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change to the forecast lease payments or change in lease term. When the lease liability is remeasured, an adjustment is made to the corresponding right-of-use asset.
Leases with a term of less than or equal to 12\u00a0months or those with asset value of less than Euro 5,000 are not recognised in the balance sheet. The Group recognises payments for these leases as an expense on a straight-line basis over the lease term within \u201cGeneral and administrative expenses\u201d.
Deferred tax will be recorded based on the amount of taxable and deductible temporary differences. Generally, on the date of the initial recording of the right-of-use and the lease liability, no deferred tax is recorded as the asset value is equal to the liability value. The net temporary differences that may result from subsequent changes in the right-to-use and lease liability will result in the recognition of deferred tax.
Further details are provided in Note\u00a015 Right-of-use assets and lease liabilities.
\u00a0
Goodwill arises on the acquisition of subsidiaries, associates and joint ventures and represents the excess of the consideration transferred over the Group\u2019s interest in the net fair value of the net identifiable assets, liabilities and contingent liabilities of the acquirer. Goodwill is measured at cost less any accumulated impairment losses. When the excess is negative (negative goodwill), it is recognised immediately in the statement of income.
For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash-generating units (\u201cCGUs\u201d), or groups of CGUs, which is expected to benefit from the synergies of the combination. Each unit or group of units to which the goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes.
Goodwill is monitored at an aggregated level (\u201cregions\u201d) as internal management reporting is organised to measure performance (and prepare business plans) at a higher level (group of CGUs). The Group identified the 4 following regions:
Goodwill impairment reviews are undertaken annually or more frequently if events or changes in circumstances indicate a potential impairment. The carrying value of goodwill is compared to the recoverable amount, which is the higher of value in use and the fair value less costs to sell. Any impairment is recognised immediately as an expense and is not subsequently reversed.
Further details are provided in Note\u00a016 Goodwill.
\u00a0
Internal software development costs are capitalised during the application development stage. The costs capitalised relate to external direct costs of materials and services and employee costs related to the time spent on the project during the capitalisation period. Capitalised software is evaluated for impairment annually or when changing circumstances indicate that amounts capitalised may be impaired. Impaired items are written down to their estimated fair values at the date of evaluation.
Internally developed software is normally depreciated over its useful life, generally 3 to 5\u00a0years; however, in some instances this can be longer.
\u00a0\u00a0
Assets that have an indefinite useful life \u2013 for example, goodwill or some intangible assets \u2013 are not subject to amortisation and are tested annually for impairment. Assets that are subject to amortisation are reviewed for impairment when there is an indication that the asset may be impaired. An impairment loss is recognised for the amount by which the asset\u2019s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset\u2019s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). Non-financial assets other than goodwill, that suffered impairment, are reviewed for possible reversal of the impairment at each reporting date.
Further details of Rental fleet impairment, refer to Note\u00a04.3 \u201cImpairment of Rental fleet\u201d.
\u00a0
The Group classifies non-current assets and disposal groups as held for sale if their carrying amounts will be recovered principally through a sale transaction rather than through continued use. Non-current assets and disposal groups classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell. Costs to sell are the incremental costs directly attributable to the disposal of an asset (disposal group), excluding finance costs and income tax expense.
The criteria for held for sale classification is regarded as met only when the sale is highly probable and the asset or disposal groups is available for immediate sale in its present condition. Actions required to complete the sale should indicate that it is unlikely that significant changes to the sale will be made or that the decision to sell will be withdrawn. Management must be committed to the plan to sell the asset and the sale expected to be completed within one year from the date of the classification.
Property, plant and equipment and intangible assets are not depreciated or amortised once classified as held for sale.
Assets and liabilities classified as held for sale are presented separately as current items in the consolidated balance sheet.
A disposal group qualifies as discontinued operation if it is a component of an entity that either has been disposed of, or is classified as held for sale, and:
The results of discontinued operations are presented separately in the income statement.
Additional disclosures relating to the Group\u2019s Discontinued Operations are provided in Note\u00a07.
\u00a0\u00a0
The Group classifies its financial assets in the following measurement categories:
The classification depends on the entity\u2019s business model for managing the financial assets and the contractual terms of the cash flows. For assets measured at fair value, gains and losses will either be recorded in consolidated income statement or Other Comprehensive Income (OCI). For investments in equity instruments that are not held for trading, this will depend on whether the Group has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income (FVOCI). The derivative financial instruments will be classified as subsequently measured at fair value through profit or loss.
The Group has not elected to irrevocably designate any financial liability for FVTPL so all financial liabilities are measured at amortised cost unless they are held for trading, in which case the financial liability will be at FVTPL. Financial liabilities at FVTPL currently only include derivative financial instruments in the Group\u2019s financial statements (refer to derivatives policy and Note\u00a03.4.10).
Regular way purchases and sales of financial assets are recognised on the balance sheet:
A financial liability is recognised when the Group becomes party to a contractual obligation to deliver cash or another financial instrument to another entity.
Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership. Financial liabilities are derecognised if the Group\u2019s obligations specified in the contract expire or are discharged or cancelled.
Financial assets and liabilities are offset, and the net amount is presented in the balance sheet when the Group has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and liability simultaneously. Income and expenses are presented on a net basis only when permitted by IFRS.
\u00a0
At initial recognition, the Group measures a financial asset or financial liability at its fair value plus or less, in the case of a financial asset not at fair value through profit or loss (FVPL), transaction costs that are directly attributable to the acquisition of the financial asset or financial liability. Transaction costs of financial instruments carried at FVTPL are expensed in the consolidated income statement.
Subsequent measurement of debt instruments depends on the Group\u2019s business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the Group classifies its debt instruments:
The Group subsequently measures all equity investments at fair value. Where the Group\u2019s management has elected to present fair value gains and losses on equity investments in OCI, there is no subsequent reclassification of fair value gains and losses to the income statement following the derecognition of the investment. Dividends from such investments continue to be recognised in the income statement as other income when the Group\u2019s right to receive payments is established.
Changes in the fair value of financial assets at FVPL are recognised in \u201cother income/(expenses)\u201d in the income statement as applicable.
\u00a0
Borrowings and other financial liabilities, including debt securities issued and other borrowings, are initially measured at fair value, net of transaction costs. Borrowings and other financial liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis. The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period. Transaction costs are included in amortised cost using the effective interest method.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the effective interest rate (EIR). The EIR amortisation is included as finance costs in the income. For more information, refer to Note\u00a029 Borrowings from financial institutions, bonds and notes issued.
\u00a0\u00a0
The Group measures financial instruments, such as derivatives, at fair value at each balance sheet date. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:
The principal or the most advantageous market must be accessible to the Group.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data is available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level of input that is significant to the fair value measurement as a whole.
The fair value of assets and liabilities is presented according to a fair value hierarchy that reflects the level of observability of the data used to make the valuations. The fair value hierarchy consists of the following levels:
For assets and liabilities that are recognised in the financial statements on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level of input that is significant to the fair value measurement as a whole) at the end of each reporting period.
\u00a0\u00a0\u00a0
In order to hedge its exposure to foreign exchange and interest rate, the Group enters into forward, option and swap contracts. None of these contracts meet the own use exemption in IFRS\u00a09 and are accounted for as derivatives. Derivatives are financial instruments, of which the value changes in response to underlying variables. Derivative instruments are used as part of the overall strategy to manage exposure to market risks primarily associated with fluctuations in interest rates and foreign exchange rates through interest rate and currency swaps respectively. As a matter of policy, derivatives are not used for speculative purposes. The Group documents at the inception of the transaction the relationship between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedging transactions. The Group also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items.
Derivatives are initially recognised at fair value on the date a derivative contract is entered into (trade date) and are subsequently re-measured at their fair value. The method of recognising the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged. The fair value of cross currency and interest rate swaps is the estimated amount that the Group would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The fair values of not-actively traded instruments are calculated using a generally accepted discounted cash flow method, while considering relevant market observable data such as quoted forward prices and interest rates. As a result of having collateral agreements in place for certain of its derivative counterparts, the requirement to reflect other observable market inputs such as CVA, DVA and FVA is eliminated for discounting purposes. The fair values of various derivative instruments used for hedging purposes are disclosed in Note\u00a026. Movements on the hedging reserve in other comprehensive income are shown in consolidated statement of changes in equity. The fair value of a hedging derivative is classified as a non-current asset or liability when the remaining hedged item is more than 12\u00a0months and as a current asset or liability when the remaining maturity of the hedged item is less than 12\u00a0months.
Changes in the fair value of derivative financial instruments that are designated and effective as hedges of future cash flows (cash flow hedges) are recognised directly in equity through Other Comprehensive Income. The gain or loss relating to the ineffective portion is recognised immediately in the income statement within \u201cunrealised gains/losses on financial instruments\u201d. If the cash flow hedge of a firm commitment or future transaction results in the recognition of a non-financial asset or liability, then, at the time the asset or liability is recognised, the associated gains or losses on the derivative that had previously been recognised in equity are included in the initial measurement of the asset or liability. For hedges that do not result in the recognition of a non-financial asset or liability, including the effective portion of interest rate swaps hedging variable rate borrowings, amounts deferred in equity are recognised in the income statement in the same period in which the hedged item affects profit or loss.
The Group only applies fair value hedge accounting for hedging fixed interest risk on borrowings. For an effective hedge of an exposure to changes in fair value, the hedged item is adjusted for changes in fair value attributable to the risk being hedged. The corresponding entry and gains or losses arising from remeasuring the associated derivative are recognised in the income statement within \u201cunrealised gains/losses on financial instruments\u201d. Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the hedged item and hedging instrument. The Group\u2019s material hedging instruments are interest rate swaps and cross currency swaps that have similar critical terms to the related debt instruments, such as payment dates, maturities and notional amount. As all critical terms matched during the year, there was no material hedge ineffectiveness. The Group also uses cross currency swaps to manage foreign exchange risk associated with borrowings denominated in foreign currencies. Where not designated in an accounting hedge there is a natural offset against foreign exchange movements on associated borrowings.
Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, exercised, revoked, or no longer qualifies for hedge accounting. At that time, any cumulative gain or loss on the hedging instrument recognised in equity is retained until the forecast transaction occurs. If a hedge transaction is no longer expected to occur, the net cumulative gain or loss previously recognised in equity is recycled to the income statement for the period. Changes in the fair value of any derivative instruments that are not designated in a hedge relationship are recognised immediately in the income statement within \u201cUnrealised gains/(losses) on financial instruments\u201d.
Derivatives embedded in other financial instruments or non-financial host contracts (other than financial assets in the scope of IFRS\u00a09) are treated as separate derivatives when their risks and characteristics are not closely related to those of their host contracts and the host contracts themselves are not carried at fair value with unrealised gains or losses reported in the income statement. Derivatives embedded in contracts which are financial assets in the scope of IFRS\u00a09 are not separated and the whole contract is accounted for at either amortised cost or fair value.
The types of risks that the Group is exposed to and derivatives used to hedge these risks can be found in Note\u00a05.1 Financial risk factors and Note\u00a019 Derivative financial instruments.
\u00a0\u00a0\u00a0
Inventories are vehicle assets held for sale from the ordinary course of business. Inventories are measured at the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses. Valuation allowances on inventories are included in \u201cCost of cars sold\u201d. Upon termination of the lease or rental contract the relevant assets are reclassified from the caption \u201cRental fleet\u201d to the caption \u201cInventories\u201d at their carrying amount, subject to an impairment review, if the intention is to sell the car rather than lease for another term, the car is not further depreciated.
Other than vehicle inventory assets the Group maintain a certain level of parts for vehicles, gasoline and other accessories for the vehicles that are consumed and used as part of the generation of service revenues for the Group.
\u00a0
This caption includes:
The receivables are shown after any accumulated impairment losses and are initially measured at fair value and subsequently at amortised cost using the effective interest method. Unearned finance income is the difference between the gross investment in the lease (undiscounted future minimum lease payments and unguaranteed residual value accruing to the Group) and the net investment in the lease.
An expected credit loss (ECL) provision is applied to all receivables from customers that are measured at amortised cost with the exception of those receivables deemed to be out of scope. The Group have applied this scope exemption when the receivable meets the low credit risk exemption criteria. The Group has applied this to receivables on used car sales and insurance receivables, where there is zero or almost no history of credit risk or the amounts due are from financial institutions with an investment grade credit rating.
For the other receivables from customers former LeasePlan entities have aligned with existing ALD policies as of May\u00a02024. Overall, the Group segments the receivables from customers into sound and doubtful receivables that includes receivables that have met the definition of default. For sound receivables the Group applies a simplified approach in calculating ECLs from initial recognition of the receivable, which means the Group does not track changes in significant increase in credit risk but instead recognises a loss allowance based on lifetime ECLs at each reporting date.
The Group has established a provision matrix for the sound receivables that is based on its historical credit loss experience by ageing categories, adjusted for forward-looking factors specific to the debtors and the economic environment when the impact of those factors is material to the financial statements. To establish the forward-looking element of IFRS\u00a09 provision, the Group uses macroeconomic data and analysis through local uplifts to probability of default and loss given default rates.
Since obtaining the financial holding status, the Group has aligned its definition of default to the ECB Regulatory Capital CRR Article\u00a0178 definition of default in 2023. This change applies to historic ALD entities only as LeasePlan entities were already aligned with the Article\u00a0178 definition of default due to holding a banking licence prior to the acquisition. For purposes of assessing, recognising and reporting defaults, a customer shall be considered to be in default when either one or both of the following events occur:
The application of the above guidance is only to the extent of identifying the customers that are in default. There is no change in the method of determining the value of impairment. Where the customer is in default, the whole of the customer balance is classified as doubtful, and impairment is based upon the full outstanding amount, except where we have adjudged there are mitigating circumstances.\u00a0
Alignment of LeasePlan entities with the Ayvens methodology increased the IFRS 9 provisions by EUR\u00a017.5\u00a0million as part of the purchase price allocation. Main driver of that increase is the provisioning of 100% for receivables from customers past due more than 90 consecutive days on any material credit obligation. The subsequent increase (EUR\u00a05.9\u00a0million) was accounted for as cost of risk in Q1 2024.
Expected credit losses are reassessed at each reporting date and reflect all reasonable information that is available at the reporting date. Judgement is required from management for applying appropriate models and setting assumptions for the measurement of ECL. The methodology, assumptions and data, including any forecasts of future economic conditions, macroeconomic impacts and the Group\u2019s provision matrix are reviewed regularly by management in determining the expected credit losses and the write-off of receivables. Doubtful debts should be written off as soon as the definitive loss is known.
Where the Group have acquired credit-impaired receivables from customers as part of a business combination, the gross receivable is initial recognised at fair value with no carrying impairment allowance. The Group only recognises the cumulative changes in lifetime expected credit losses since initial recognition as a loss allowance for originated purchased credit-impaired financial assets in the income statement.
Disputes often arise in the collection of lease receivables and tend to range from issues relating to the performance of various services under the contract to the amount of end-of-contract billing. A dispute has no impact on the solvency of the customer or the risk of default, and therefore is not a credit loss. As such these amounts are removed from sound receivables and a provision is applied based on our provisions accounting policy. For presentation purposes the provision is netted against the \u201cReceivables from customers\u201d balance sheet line item.
Details about the assumptions and estimation techniques used in measuring ECL for finance lease receivables and trade receivables from operating lease contracts are provided in the section Credit risk management and disclosure on the impairment provided in Note\u00a022 Lease receivables from customers.
\u00a0\u00a0
Other receivables and prepayments include prepayments in respect of expenses attributable to a subsequent period plus amounts still to be received. These amounts are valued at cost. For recognition and measurement of Reinsurance assets and Insurance contract assets reference is made to the insurance policy. For those financial assets measured at amortised cost the Group has excluded them as part of the expected loss model (see Lease receivable from customers policy) and instead any impairment will be based on observable events.
\u00a0
In the consolidated statement of cash flows and consolidated balance sheet, cash and cash equivalents comprise of cash at hand, central bank deposits, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts are shown within borrowings in liabilities on the consolidated balance sheet. Cash and cash equivalents are defined as short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. The short-term characteristic of a cash equivalent is generally taken as a term of three months or less from the date of acquisition. Cash and cash equivalents are measured at amortised cost.
\u00a0
Group companies operate various employee benefit schemes. The schemes are generally funded through payments to insurance companies or trustee-administered funds, determined by periodic actuarial calculations. The Group has defined benefit and defined contribution pension plans as well as other post-employment benefits.
A defined contribution plan is a pension plan under which the Group pays fixed contributions to publicly or privately administered pension insurance plans on a mandatory, contractual or voluntary basis. The Group has no further payment obligations once the pension contributions have been paid if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. Contributions to defined contribution pension plans are recognised as expenses in the consolidated income statement when they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.
A defined benefit plan is a pension plan that is not a defined contribution plan. Typically, defined benefit plans define an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors, such as age, years of service and compensation.
The Group\u2019s net obligation in respect of defined benefit pension plans is calculated separately for each plan by estimating the amount of future benefits that employees have earned in return for their services in the current and prior periods. The present value of the defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The benefit is discounted at the yield at the balance sheet date on high quality corporate bonds denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension obligation.
The net benefit obligation recognised in the balance sheet is the present value of the defined benefit obligation at the balance sheet date together with adjustments for unrecognised past-service costs less the fair value of the plan assets. For determining the pension expense, the expected return on plan assets is determined using a high-quality corporate bond rate identical to the discount rate used in determining the defined benefit obligation.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity in other comprehensive income in the period in which they arise without recycling to the consolidated income statement. Past-service costs are recognised immediately in the income statement.
Settlements and curtailments invoke immediate recognition in the income statement of the relevant change in the present value of the defined benefit obligations and in the market value of the plan assets. A settlement is an early termination of all or part of the defined benefit obligation. A curtailment occurs when the Group is demonstrably committed to materially reducing the number of employees in the defined benefit plan or the pension benefits for future services.
Further details are provided in Note\u00a031 \u201cRetirement benefit obligations and long-term benefits\u201d.
Some Group companies provide other long-term employment benefits to their employees based on local legal requirements. These benefits mainly comprise medium-term bonus and profit-sharing schemes, and extra leave entitlements.
The Group recognises a liability and an expense for bonuses and profit-sharing, based on a formula that takes into consideration the profit attributable to the Group\u2019s shareholders after certain adjustments. The Group recognises a provision where contractually obliged or where there is a past practice that has created a constructive obligation.
Termination benefits are payable when employment is terminated by the Group before the normal retirement date, or whenever an employee accepts voluntary redundancy in exchange for these benefits. The Group recognises termination benefits when the entity has a detailed formal plan to terminate the employment of current employees without possibility of withdrawal. In the case of an offer made to encourage voluntary redundancy, the termination benefits are measured based on the number of employees expected to accept the offer. Benefits falling due more than 12\u00a0months after the end of the reporting period are discounted to their present value.
\u00a0\u00a0
Provisions for restructuring costs and legal claims are recognised when the Group has a present legal or constructive obligation because of past events, it is probable that an outflow of resources will be required to settle the obligation, and the amount could be reliably estimated.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.
Provisions are measured at the present value of management\u2019s best estimate of the expenditure expected required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to passage of time is recognised as interest expense.
The risk of damage to owned Group vehicles is part of the IFRS\u00a015 allocation of revenue and IAS\u00a037 provisioning, whereas insurance contracts issued to customers for accepting significant insurance risk is subject to IFRS\u00a017 accounting (see Insurance contracts policy). The Group provides customers with an own damage and repair cover in exchange of the payment of a monthly fee. Own damage revenues are recorded in the caption \u201cServices Revenues\u201d and revenue is recognised on a straight-line basis over the duration of the contract (unless the expected release of risk differs materially from a straight-line basis). Further details are provided in Note\u00a08 Revenues and cost of revenues. Where the fees are unearned based on the invoiced amounts, this amount is deferred income included within under \u201cOther receivables, prepayments and contract assets\u201d caption in the consolidated balance sheet (refer to Note\u00a024).
Damage services provisions are measured at the amount of the \u201cbest estimate\u201d expected expenditure required to settle the present obligations to repair the damage at the reporting date. An estimate for Incurred But Not Reported (IBNR) and Incurred But Not Enough Reserved (IBNER) is made to determine appropriate damage provision levels. These estimates are based on historical data of accident frequency in the local market and the cost per claim updated for current assumptions. The measurement includes a margin for risks and uncertainties that is inherent to the historical data adjusted for recent pricing developments. The damage service provision is expected to be recovered or settled within a maximum of 12\u00a0months. Expenses for damage services are expensed to the income statement when incurred and the best estimate of the provision is updated at each reporting period, with any adjustment recognised along with the expenses incurred in \u201cCost of Services Revenues\u201d caption in the income statement.
Where there is a stop-loss policy in place, limiting the risk of losses above a set level, provisions are booked only up to the level of the stop-loss. Beyond that level, all claims are debited to the reinsurance provider of the stop-loss cover. Any stop-loss cover on individual incidents is also taken into account in evaluation of the provision for IBNR and IBNER. Gross claim costs are reduced to the level of cap per incident. Even where stop-loss cover is in place, if total claims are anticipated to be below the level of premium and stop-loss cover, then profit is booked in the normal way.
\u00a0\u00a0
The insurance contracts issued are one of the services offered to the customers of the Group in addition to the lease of the vehicles and other related leasing services. Insurance contracts are contracts under which the Group accepts a significant risk \u2013 other than a financial risk \u2013 from a policyholder by agreeing to compensate the beneficiary on the occurrence of an uncertain future event by which he or she will be adversely affected. Contracts that have been classified as insurance at inception are not reclassified subsequently.
For measurement purposes, the insurance contracts are grouped into portfolios of insurance contracts that have similar risks and are managed together. Portfolios are further grouped in year cohorts of issuance and divided based on expected profitability at inception into two categories: onerous contracts and not-onerous contracts. Insurance contracts are recognised at the earlier of the beginning of the coverage period or when it becomes onerous. Insurance contracts are derecognised when the contract is expired, is discharged or cancelled. Modifications to contracts that are not considered changes in estimates will result in that the contract is derecognised, and a new contract is recognised.
All our insurance contracts issued, and reinsurance contracts held are eligible to be measured by applying the premium allocation approach, which has been fully adopted. Under the premium allocation approach, non-life insurance contract provisions include liabilities for remaining coverage and liabilities for incurred claims. The liability for remaining coverage reflects premiums received less amounts recognised in revenue for insurance contracts provided. As the premiums are received within one year of the coverage period no discounting is applied to reflect financial risk or the time value of money. The liability for incurred claims is determined on a discounted probability-weighted expected value basis and includes an explicit risk adjustment for non-financial risk. The liability includes the Group\u2019s obligation to pay other incurred insurance expenses. The liability for incurred claims is the obligation to pay valid claims for insured events that have already been occurred (IBNR and IBNER), including events that have occurred but for which claims have not been reported (IBNYR). The liability for incurred claims is estimated as the fulfilment cash flows measured as an explicit, unbiased, and probability-weighted estimate (i.e., expected value) of the present value of the future cash outflows minus the present value of the future cash inflows that will arise as the entity fulfils insurance contracts, including a risk adjustment for non-financial risk. The cash outflows include claim handling costs, policy administration and an allocation of directly attributable fixed and variable overheads to fulfilling insurance contracts.
Revenue is recognised on a straight-line basis over the duration of the contract (unless the expected release of risk differs materially from a straight-line basis). Further details are provided in Note\u00a08 Revenues and cost of revenues. Expenses for damage services are expensed to the income statement when incurred and the best estimate of the provision is updated at each reporting period, with any adjustment recognised along with the expenses incurred in \u201cCost of Services Revenues\u201d caption in the income statement. Portfolios of contracts in an asset position are reported under \u201cOther receivables, prepayments and contract assets\u201d caption in the consolidated balance sheet (refer to Note\u00a024). This includes expenses attributable to a subsequent period plus amounts still to be received and are measured at cost.
Under the premium allocation approach, it is assumed that no contracts in the portfolio are onerous at initial recognition, unless facts and circumstances that are monitored by performance indicators by Group\u2019s management indicate otherwise. Such onerous contracts are separately grouped from other contracts and the Group recognises a loss in profit or loss for the loss component. If during the coverage period, facts and circumstances indicate that a group of insurance contracts is onerous, the Group recognises a loss in the income statement for the net outflow, resulting in the carrying amount of the liability for the Group being equal to the fulfilment cash flows.
\u00a0
The Group measures its reinsurance assets for a group of reinsurance contracts that it holds on the same basis as insurance contracts that it issues adapted to reflect the features of reinsurance contracts held that differ from insurance contracts issued. Where the Group recognises a loss on initial recognition of an onerous group of insurance contracts, the Group establishes a loss-recovery component of the asset for remaining coverage for a group of reinsurance contracts held depicting the recovery of losses.
Annually the Group assesses whether its amounts recoverable under a reinsurance contract are subject to impairment. Reinsurance assets are impaired if there is objective evidence, because of an event that occurred after initial recognition of the reinsurance asset, that not all amounts due under the terms of the contract may be received. The carrying value is reduced to this calculated recoverable value, and the impairment loss recognised in the income statement.
\u00a0
Trade and other payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. If payment is due within one year or less (or in the normal operating cycle of the business if longer) these will be presented as current obligations, but otherwise will be presented as non-current liabilities. Trade payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.
The Group recognises a liability and an expense for variable remuneration to employees based on an assessment of the relevant performance of variable remuneration criteria (see Share-based payments accounting policy). The Group recognises an accrual where contractually obliged or where there is a past practice that has created a constructive obligation.
\u00a0
The tax expense for the period comprises current and deferred tax. Tax is recognised in the income statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Group operate and generate taxable income.
Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.
\u00a0
Deferred income tax is recognised, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill; deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted at the balance sheet date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.
Deferred income tax assets are recognised only to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilised.
Deferred income tax is booked on temporary differences arising on investments in subsidiaries and associates, except for deferred income tax liability where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.
Current and deferred taxes are recognised in the income statement under Income tax. Deferred taxes related to remeasurement of retirement benefit, cash flow hedges and gains or losses on fair value of debt securities are recognised in other comprehensive income.
\u00a0
Revenues represent the fair value of the consideration received or receivable for the sale of goods and services in the Group\u2019s ordinary course of business.
Contracts relating to vehicle leasing and service products can take the form of operating leases, finance leases and service agreements. To determine whether a contract includes an agreement for a period of time, the Group has assessed whether, throughout the period of use, the customer has both of the following:
If a contract relating to an asset fails to give the customer both of the above rights, the Group accounts for the agreement as a revenue contract. In situations where management services unrelated to an asset contract are provided, the Group accounts for the contract as a service contract.
In most situations, lease and service contracts are entered into at the same time or as a single contract with our customers. Where the customer is charged a monthly fee that both relates to the rental price of the vehicle (including depreciation and interest) and various other products and services that the customer can subscribe to, the standalone tariffed elements will be recognised as separate performance obligations if the good or service is distinct by meeting both the following criteria:
Activities or costs that transfer a good or service to the lessee are identified as non-lease components. Amounts payable for activities and costs that do not transfer a good or service are part of the total consideration and are allocated to the lease and non-lease components identified in the contract.
The lease classification, that is determined on a contract-by-contract basis, will determine if revenue recognition is on an operating lease or finance lease basis.
On operating leases, lease rental revenue (depreciation and interest) is recognised in accordance with IFRS\u00a016 on a straight-line basis over the lease term based on the total of the contractual payments divided by the number of months of the lease term.
Charges to customers may include passed on costs such as fuel, road taxes and other taxes which do not represent the inflow of economic benefits and/or are collected on behalf of third parties and are therefore not presented as revenues.
Upfront payments from customers at the beginning of the lease agreement are recognised in the balance sheet and amortised on a straight-line basis over the period of the lease agreement. Amounts paid or value provided to lessees as lease incentives are capitalised (e.g., upfront cash payments to the lessee, reimbursement or absorption of costs by the lessor or free or reduced rents given at the beginning of the lease term). Lease incentives are accounted for on a straight-line basis over the term of the related lease as a reduction in revenue.
Where a customer retains the car for a period beyond the normal return date (informal extension), the rent continues to be charged to the customer and the related contractual depreciation will continue to be recognised.
Regarding finance leases, the IFRS\u00a016\u00a0standard is applied, and the earnings are allocated between the capital amount and finance income. The capital amount is used to reduce the receivable balance and the income is recognised in the income statement in each period using the effective interest rate method to give a constant periodic rate of return on the net investment in the lease. The Group uses the net investment method to allocate gross earnings, which excludes the effect of cash flows arising from taxes and financing relating to a lease transaction. In addition:
Upfront payments and initial direct costs are taken into consideration in calculating the implicit interest rate in the lease and recognised evenly over the life of the lease.
If a contract contains a lease component and one or additional lease or non-lease components, then IFRS\u00a016 requires a lessor always to allocate the consideration in a contract following the approach in IFRS\u00a015 Revenue recognition.
The 5\u00a0steps process required by IFRS\u00a015 for non-lease components is summarised as follows:
Revenue from Fleet Management services is recognised on a straight-line basis over the term of the Fleet Management agreement.
Income related to repair, maintenance and tyres (RMT) is recognised over the term of the lease contract. The allocation of income over the term is based on the normal RMT cost profile supported by historical statistics and expected service costs. The difference between the amounts charged to customers and amounts recognised as income is accounted for as deferred leasing income. Cost profiles are reviewed periodically to ensure they remain a fair representation of historical RMT expenditures, adjusted for reasonable expectations of changes in cost profiles. Where an accurate or reliable estimate of the cost curve is not available, revenue is recognised based on an estimate of expected completion of the performance obligation using an alternative input method.
If income related to services surrounding contracts is not certain until final settlement takes place, this income is not recognised until that time and is presented within the sales result. For all other contracts, expected losses are recognised as an expense immediately when it is probable that total contract costs will exceed total contract revenues.
Flex Fleet revenues are recognised on a straight-line basis over the term of the rental agreement.
The revenue from the risk retention schemes is recognised based on the monthly lease instalment. This applies for third-party liability and own damage insurance products. Revenue recognition will cease when the contract is terminated by a customer or at the end of the contractual term.
Where interest on late payment is billed to customers, the related revenue is only recognised when settlements are made by customers.
Revenues also include the proceeds of the sale of vehicles from terminated lease contracts and lease revenues from end of contract billing such as repair costs recharged to the customer. The proceeds from the sale of vehicles are recognised when the vehicles are sold and control of the vehicles is transferred. End of contract fees may consist of fees charged to customers for mileage variation adjustments and excessive wear and tear of the vehicle. Revenues also include charges arising from deviations from the contractual terms, where the fees are recognised upon termination of the lease contract.
\u00a0\u00a0\u00a0\u00a0
Direct cost of revenues comprises the cost associated with providing the above-mentioned service components of the lease instalment (including: vehicle maintenance, replacement costs and winter tyres, insurance premiums and the provision of short term replacement vehicles). Any (volume related) bonuses related to these expenses are credited directly to expenses. Bonuses received on purchases of objects for operating lease contracts are deducted from the purchase consideration and as such result in lower depreciation. Bonuses received on purchases of objects for finance lease contracts are recognised immediately in the consolidated income statement.
\u00a0
Interest income, interest charges and similar charges for all interest-bearing assets and liabilities are recognised in the income statement on an accrual basis using the effective interest method. The effective interest rate is the rate that exactly discounts the estimated future cash payments and receipts through the expected life of the financial asset or liability to the carrying amount of the financial asset or liability.
The interest income component in operating lease instalments, which is charged on a straight-line basis to the customer, is recognised in \u201cLeasing revenue \u2013 operating lease\u201d also on a straight line basis.
Interest income on finance lease contracts is recognised in the income statement on the basis of accruing interest income on the net investment (using the effective interest method). The receipts under the lease are allocated by the lessor between reducing the net investment and recognising interest income, to produce a constant rate of return on the net investment.
\u00a0
This item includes office overheads, automation costs, advertising costs, professional fees and other general expenses.
\u00a0
Some employees (including senior executives) of the Group receive remuneration in the form of share-based payments via the Group long-term incentive plans and employee share schemes, whereby employees render services in exchange for equity-settled transactions and cash-settled transactions. Information relating to these schemes is set out in Note\u00a028.
The fair value of shares granted under the Group long-term incentive plan is recognised as an employee benefits expense with a corresponding increase in equity. The total amount to be expensed is determined by reference to the fair value of the shares granted. The total expense is recognised over the vesting period, which is the period when all of the specified vesting conditions are to be satisfied. At the end of each period, the entity revises its estimates of the number of shares that are expected to vest based on the non-market vesting and service conditions. It recognises the impact of the revision to original estimates, if any, in profit or loss, with a corresponding adjustment to equity.
The Group has variable remuneration awards for the identified staff that consists of a direct payment in cash and a deferred payment in cash and shares. The shares entitle the participant to a payment in cash after a specified period and are recognised as a cash-settled share-based payment arrangement. The shares part of the deferred award is revalued annually by estimating the Company\u2019s equity value for determining the fair value of the outstanding shares awards.
Liabilities recognised for shares are measured at the estimated fair value. This fair value is established once a year by the (Remuneration Committee of the) Board of Directors and is based on comparing financial performance of the Company to publicly available valuation and financial performance of a selected peer group of comparable companies. All changes to the shares\u2019 liabilities are recognised in the statement of profit or loss under staff expenses.
\u00a0
Basic EPS is calculated by dividing the profit for the year attributable to ordinary equity holders of the parent (after adjusting for interest on the AT1 capital) by the weighted average number of ordinary shares outstanding during the year.
Diluted EPS is calculated by dividing the profit attributable to ordinary equity holders of the parent (after adjusting for interest on the AT1 capital) by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares.
The basis for the depreciation of an asset underlying an operating lease contract and rental contracts is the investment value at cost less the estimated residual value as included in the contract, in combination with the estimated contract duration. A change in the estimated residual value and/or contract duration leads to a change in depreciation that has an effect in the current period and/or in subsequent periods. Statistical models and calculations (regression analysis) in combination with forward-looking market expectations are used to calculate a vehicle\u2019s future value as accurately as possible.
Residual values of the current running fleet are reviewed at least yearly (twice a year for the entities with more than 10,000 vehicles, one in each semester). It is performed at a local country level through a revaluation process which is reviewed and approved at Group level. The local analysts also include additional scenarios in the calculation to take into account elements that are not captured by the statistics. These scenarios include assumptions such as possible decreases of used car prices, concentration mix of vehicles and other local factors.
Current residual value embedded in the contract is compared with the expected market value on a car-by-car basis.
In accordance with IAS\u00a08, a residual value is treated as an accounting estimate. Revision of the expected residual values may result in depreciation adjustments.
\u201cLeasing costs \u2013 depreciation\u201d includes depreciation of vehicles which is calculated based on contractual residual values. Any impacts from the revision of residual values are recorded in the \u201cDepreciation costs adjustments\u201d in \u201cUsed Car Sales result and depreciation adjustments\u201d. For further detail see Note\u00a03.1 Basis of preparation.
In determining whether goodwill is impaired requires an estimation of the value in use of the groups of cash generating units to which the goodwill assets have been allocated. The key assumptions calculating the value in use are those regarding discount rates, growth rates and other expected changes in cash flows. The estimates and assumptions used are disclosed in Note\u00a016 Goodwill of these consolidated financial statements.
The Group tests annually whether goodwill has suffered any impairment, in accordance with the accounting policy stated presented in Note\u00a03.4.6 of these consolidated financial statements. The recoverable amounts of cash-generating units have been determined based on value-in-use calculations. These calculations require the use of estimates. The Group uses a five-year business plan for each of the group of CGUs identified. The business plans used incorporated assumptions relevant to the current economic climate such as fleet growth, used car market and credit risk.
For goodwill, sensitivity tests are carried out to measure the impact on each group of CGU\u2019s recoverable value based on certain assumptions, refer to Note\u00a016 Goodwill.
In the annual assessment, on a country level, of whether there is any indication that assets may be impaired, the Group considers both external as well as internal sources of information. If such indication for impairment exists, an analysis is performed to assess whether the carrying value of the asset or cash generating unit under an operating lease exceeds the recoverable amount, being the higher of the fair value less costs to sell and the value in use. The value in use is determined at the present value of the future cash flows expected to be derived from the object or cash generating unit. The management closely monitors residual values, which are reviewed internally at least each financial year, due to it being an important input in determining value in use. The original residual values within internal systems will be compared to the revised residual values expected at contract termination, following a review. The results of this exercise will be used to assess the level of exposure, reserves held and potential impairment required. To prevent impairment on residual values, each country completes a minimum of one annual review of pricing under the supervision of the Group to ensure that assumptions used in pricing reflect expected future market conditions, thus ensuring residual values are predicted with a reasonable degree of accuracy and on a consistent basis going forward. In 2024, there was no indication that an impairment exists.
Further details are provided in Note\u00a013 Rental fleet.
The fair value of certain financial instruments is determined by using valuation techniques. The Group uses its judgement to select a variety of methods and make assumptions that are mainly based on market conditions existing at the end of each reporting period. The Group has used discounted cash flow analysis for various available-for-sale financial assets that are not traded in active markets. Such assets do not present material amounts in the financial statements.
Details about the methodology in measuring ECL for finance lease receivables and trade receivables from operating lease contracts are provided in Note\u00a022 Lease receivables from customers. Expected credit losses are reassessed at each reporting date and reflect all reasonable information that is available at the reporting date. Judgement is required from management for applying appropriate models and setting assumptions for the measurement of ECL. The methodology, assumptions and data, including any forecasts of future economic conditions, macroeconomic impacts and the Group\u2019s provision matrix are reviewed regularly by management in determining the expected credit losses and the write-off of receivables.
The present value of the pension obligations depends on a number of factors that are determined on an actuarial basis using a number of assumptions. The assumptions used in determining the net cost/(income) for pensions include the discount rate, inflation, expected return on plan assets, salary rises and mortality rates. Any changes in these assumptions will impact the carrying amount of pension obligations, but the discount rate is the most significant factor that will change year on year.
The Group determines the appropriate discount rate at the end of each year. This is the interest rate that is used to determine the present value of estimated future cash outflows expected to be required to settle the pension obligations. In determining the appropriate discount rate, the Group considers the interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid and that have terms to maturity approximating the terms of the related pension obligation.
Further details are provided in Note\u00a031 Retirement benefit obligations and long-term benefits.
The Group is subject to income taxes in numerous jurisdictions. Significant judgement is required in determining the worldwide current and deferred tax. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The Group assumes in the estimates that all tax positions that are not yet final will be examined by tax authorities, that have all relevant information available. The Group recognises deferred tax assets only to the extent that it is probable that future taxable profits will be available. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences are analysed and will impact the income tax and deferred tax assets or liabilities in the year in which such determination is made.
Income related to lease services is recognised over the term of the contract based on historical statistics and on assumptions regarding expected service costs. The assumptions may differ from the actual data as a result of changes in economic and market conditions and are periodically back tested and adjusted if considered necessary. For details in relation to the accounting of Note 3.4.20 Revenue recognition.
For litigation, when there is a legal or constructive obligation and it is more likely than not that there will be an outflow of benefits which can be measured reliably, the best estimate of the future outflow of resources has been recognised. In extremely rare situations where no reliable estimate can be made yet on claims expected, no provision will be recognised in the balance sheet but information about a contingent liability will be disclosed.
Every quarter it is assessed whether the litigation provisions are still sufficient and or still relevant.\u00a0
Further details are provided in Note\u00a032 Provisions.
During the reporting period, the Group implemented a new regional structure for its operating segments, which reflects a strategic alignment with its management structure following the acquisition and integration of LeasePlan. The Group has appointed a new leadership team where the members of the Executive Committee hold supervisory responsibilities in line with the new regional structure of four regions. The new regional segmentation corresponds to the updated management structure. To ensure consistency and enhance decision-making, the new regional segmentation has been implemented across the Group\u2019s budgeting and internal reporting processes. Supporting departments, such as finance and human resources, have been restructured to align with the regional segments, creating an uniform approach to operational support.
The new regional segmentation comprises 4 regions with the following countries per region:
The performance of the operating segments is assessed based on a measure of revenue and profit before tax as presented in the consolidated financial statements. None of the Group\u2019s customers represent more than 10% of the total revenue.
The authorised capital as of 31\u00a0December 2024 amounted to EUR\u00a01,225.4\u00a0million (2023: EUR\u00a01,225.4\u00a0million). The authorised capital is divided into 816,960,428 ordinary shares (2023: 816,960,428) with a nominal value of EUR\u00a01.50 each. At 31\u00a0December 2024 the share premium amounted to EUR\u00a03,819.4\u00a0million (2023: EUR\u00a03,819.4\u00a0million).
On 22\u00a0May 2023 the Group completed a share issue for 251,215, 332 ordinary shares with a nominal value of EUR\u00a01.50 each. This issue represented 30.75% of the total ordinary shares of the Group at the transaction date. The newly created Group shares were issued to finance the share component of the acquisition of LeasePlan. As required under IFRS\u00a03, the share component is measured based on the fair value of the Group\u2019s shares of EUR\u00a011.43 each at the Completion Date. Based on this, the share component of the acquisition amounts to EUR\u00a02,871.4\u00a0million. The share premium includes the amount paid in excess of the nominal value of the share capital. All shares issued by the Group have been fully paid.
The holders of the shares are entitled to receive dividend as declared at Annual General Meetings and are entitled to vote at meetings of the Company.
At a General Meeting held in prior years, the Group was authorised to purchase its own shares for the purposes of attributing, covering and paying off any scheme for the allocation of free shares, employee savings scheme and any other form of allocation to employees and executive directors of the Company or of companies related to it under the conditions set out in applicable legislative and regulatory provisions, in particular in terms of sharing in the benefits of the Company\u2019s expansion, the allocation of free shares, all schemes for employee shareholding and to carry out all hedging operations relating to the said employee shareholding schemes. Treasury shares held by the Group amount to 998,955\u00a0shares at 31\u00a0December 2024 (2023: 1,268,887\u00a0shares). Treasury shares do not have any voting rights attached to them.
", "dimensions": { "concept": "ifrs-full:DisclosureOfMaterialAccountingPolicyInformationExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_f6d9c475-7109-4230-ad0a-b82eb3e32d0a": { "value": "The Group\u2019s audited consolidated financial statements as at 31\u00a0December 2024, were authorised for issue by the Board of Directors on 21 March 2025.", "dimensions": { "concept": "ifrs-full:DisclosureOfAuthorisationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_5521a94e-c03a-4493-9e11-861f65a8ac79": { "value": "The consolidated financial statements of the Group have been prepared in accordance with International Financial Reporting Standards (IFRS) and interpretations issued by the IFRS\u00a0Interpretations Committee (IFRS\u00a0IC) applicable to companies reporting under IFRS as endorsed by the European Union.", "dimensions": { "concept": "ifrs-full:StatementOfIFRSCompliance", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_ed25aa46-7da9-43b8-b046-6c09b002cb36": { "value": "The balance sheet of the Group, its cash flows, liquidity position and borrowing facilities are set out in the Group financial statements and Notes to the financial statements. Further details of our policy on financial risk management are set out in Note\u00a05 to the financial statements. The Group\u2019s net debt at 31\u00a0December 2024 was EUR\u00a049.0\u00a0billion (2023: EUR\u00a045.4\u00a0billion) and the Group liquidity position (defined as cash and undrawn committed facilities) of EUR\u00a06.2\u00a0billion at 31\u00a0December 2024 remains strong (2023: EUR\u00a05.6\u00a0billion). Details of borrowings and facilities are set out in Note\u00a029.
The Board is satisfied that the Group\u2019s forecasts and projections, taking account of reasonably possible changes in trading performance, show that the Group will be able to operate within the level of its current facilities for a period of at least 12\u00a0months from the date of approval of the financial statements. For this reason, the Group continues to adopt the going concern basis in preparing of its financial statements.
", "dimensions": { "concept": "ifrs-full:DisclosureOfGoingConcernExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_a51a6517-f730-4b06-825f-51acace8c3a9": { "value": "On 16\u00a0March 2022, the International Practices Task Force of the Centre for Audit Quality, a standard reference for identifying countries with hyperinflation, published a working paper including Turkey in the list of hyperinflationary economies. Consequently, from 1\u00a0January 2022 onwards, the Group has been applying the provisions of the IAS\u00a029\u00a0standard (\u201cFinancial Reporting in Hyperinflationary Economies\u201d) to the Group\u2019s Turkish subsidiaries. The financial statements include restatements for changes in the general purchasing power of the Turkish lira to the measuring unit current at the reporting date.
Adjustments are made to the non-monetary assets and liabilities (with biggest impacts in Rental fleet, and the Group Consolidated Reserves pertaining to the subsidiaries in Turkey). The carrying amounts of Rental fleet are adjusted to reflect the change in the consumer price index (CPI) during 2024. The Turkish consumer price index has been used to calculate the adjustments relating to the inflation.
\u00a0
The development of the CPI index in the current and previous reporting periods is as follows:
\u00a0 | 12/2021 | 12/2022 | 12/2023 | 12/2024 |
|---|---|---|---|---|
Conversion coefficient | 687.00 | 1,128.50 | 1,859.40 | 2,684.60 |
CPI Index (12\u00a0months) | 36.08 | 64.27 | 64.77 | 44.38 |
\u00a0
The financial statements of the Turkish subsidiaries are based on a historic cost. Non-monetary items in the financial statements have been restated for the change in CPI from the date of their acquisition or initial recognition to the end of the reporting period.
Gains or losses on all subsequent hyperinflation adjustments, such as restatement of non-monetary assets and liabilities, restatement of income and expenses at transaction date and the counterpart of restatement all components of equity from the beginning of the period, are recognised in the income statement in \u201cUnrealised gains and losses on financial instruments and other\u201d. An impairment loss will be recognised in the income statement if the restated amount of the book value of vehicles exceeds their estimated recoverable amount, and these are recognised in the income statement in \u201cLeasing costs \u2013 depreciation\u201d. Restatement of all components of equity is recorded in the hyperinflation reserve which is reclassified to the translation reserves related to the Turkish subsidiaries upon consolidation. Reclassification is done on the basis of the economic interrelationship between the changes in exchange rates and inflation (i.e. as prices measured in hyperinflationary currency increase, their value against other currencies tends to decrease at a rate that reflects the excess of price inflation in the hyperinflationary currency compared to price inflation in other currencies).
All items in the statement of cash flows which relate to the Turkish subsidiaries are expressed in terms of the consumer price index at the end of the reporting period.
During 2023, the impact of the hyperinflation accounting on intercompany accounts has triggered inconsistencies between the reported amount by Turkey and the other group subsidiaries, mainly due to FX rates. This mismatch was presented as part of the currency translation adjustment position and had a total value of EUR\u00a011.3\u00a0million. During 2024, this value plus an additional one of EUR\u00a00.8\u00a0million, was reclassified from currency translation adjustment to profit of the period because of the change in the reporting process of the parent. In addition, the impact of hyperinflation in the intercompany profit or loss accounts is removed against the gains or losses from net monetary items.
", "dimensions": { "concept": "ifrs-full:DisclosureOfHyperinflationaryReportingExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_df556cc6-db56-4d50-bdd0-80acd3096084": { "value": "The preparation of the financial statements requires the management of both the Group and its subsidiaries to use certain estimates and assumptions that may have an impact on the reported values of assets, liabilities and contingent liabilities at the reporting date and on items of income and expense for the period.
The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ significantly from these estimates if different assumptions or circumstances apply.
Significant judgements made by the management in applying the Group\u2019s accounting policies and the key sources of estimation uncertainty are disclosed in Note\u00a04 Critical accounting estimates and judgements.
\u00a0
The preparation of the Group\u2019s consolidated financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.
In preparing the Group\u2019s consolidated financial statements, the significant judgements made by management in applying the Group\u2019s accounting policies and the key sources of estimation of uncertainty were largely the same as those that were applied to the consolidated financial statements for the year ended 31\u00a0December 2023. However, the estimates and assumptions are updated in case of significant impacts, such as a global crisis, and the key sources of estimation uncertainty are investigated in more depth in specific notes to the consolidated balance sheet.
The basis for the depreciation of an asset underlying an operating lease contract and rental contracts is the investment value at cost less the estimated residual value as included in the contract, in combination with the estimated contract duration. A change in the estimated residual value and/or contract duration leads to a change in depreciation that has an effect in the current period and/or in subsequent periods. Statistical models and calculations (regression analysis) in combination with forward-looking market expectations are used to calculate a vehicle\u2019s future value as accurately as possible.
Residual values of the current running fleet are reviewed at least yearly (twice a year for the entities with more than 10,000 vehicles, one in each semester). It is performed at a local country level through a revaluation process which is reviewed and approved at Group level. The local analysts also include additional scenarios in the calculation to take into account elements that are not captured by the statistics. These scenarios include assumptions such as possible decreases of used car prices, concentration mix of vehicles and other local factors.
Current residual value embedded in the contract is compared with the expected market value on a car-by-car basis.
In accordance with IAS\u00a08, a residual value is treated as an accounting estimate. Revision of the expected residual values may result in depreciation adjustments.
\u201cLeasing costs \u2013 depreciation\u201d includes depreciation of vehicles which is calculated based on contractual residual values. Any impacts from the revision of residual values are recorded in the \u201cDepreciation costs adjustments\u201d in \u201cUsed Car Sales result and depreciation adjustments\u201d. For further detail see Note\u00a03.1 Basis of preparation.
\u00a0\u00a0\u00a0
In determining whether goodwill is impaired requires an estimation of the value in use of the groups of cash generating units to which the goodwill assets have been allocated. The key assumptions calculating the value in use are those regarding discount rates, growth rates and other expected changes in cash flows. The estimates and assumptions used are disclosed in Note\u00a016 Goodwill of these consolidated financial statements.
The Group tests annually whether goodwill has suffered any impairment, in accordance with the accounting policy stated presented in Note\u00a03.4.6 of these consolidated financial statements. The recoverable amounts of cash-generating units have been determined based on value-in-use calculations. These calculations require the use of estimates. The Group uses a five-year business plan for each of the group of CGUs identified. The business plans used incorporated assumptions relevant to the current economic climate such as fleet growth, used car market and credit risk.
For goodwill, sensitivity tests are carried out to measure the impact on each group of CGU\u2019s recoverable value based on certain assumptions, refer to Note\u00a016 Goodwill.
\u00a0\u00a0
In the annual assessment, on a country level, of whether there is any indication that assets may be impaired, the Group considers both external as well as internal sources of information. If such indication for impairment exists, an analysis is performed to assess whether the carrying value of the asset or cash generating unit under an operating lease exceeds the recoverable amount, being the higher of the fair value less costs to sell and the value in use. The value in use is determined at the present value of the future cash flows expected to be derived from the object or cash generating unit. The management closely monitors residual values, which are reviewed internally at least each financial year, due to it being an important input in determining value in use. The original residual values within internal systems will be compared to the revised residual values expected at contract termination, following a review. The results of this exercise will be used to assess the level of exposure, reserves held and potential impairment required. To prevent impairment on residual values, each country completes a minimum of one annual review of pricing under the supervision of the Group to ensure that assumptions used in pricing reflect expected future market conditions, thus ensuring residual values are predicted with a reasonable degree of accuracy and on a consistent basis going forward. In 2024, there was no indication that an impairment exists.
Further details are provided in Note\u00a013 Rental fleet.
\u00a0\u00a0
The fair value of certain financial instruments is determined by using valuation techniques. The Group uses its judgement to select a variety of methods and make assumptions that are mainly based on market conditions existing at the end of each reporting period. The Group has used discounted cash flow analysis for various available-for-sale financial assets that are not traded in active markets. Such assets do not present material amounts in the financial statements.
\u00a0
Details about the methodology in measuring ECL for finance lease receivables and trade receivables from operating lease contracts are provided in Note\u00a022 Lease receivables from customers. Expected credit losses are reassessed at each reporting date and reflect all reasonable information that is available at the reporting date. Judgement is required from management for applying appropriate models and setting assumptions for the measurement of ECL. The methodology, assumptions and data, including any forecasts of future economic conditions, macroeconomic impacts and the Group\u2019s provision matrix are reviewed regularly by management in determining the expected credit losses and the write-off of receivables.
\u00a0
The present value of the pension obligations depends on a number of factors that are determined on an actuarial basis using a number of assumptions. The assumptions used in determining the net cost/(income) for pensions include the discount rate, inflation, expected return on plan assets, salary rises and mortality rates. Any changes in these assumptions will impact the carrying amount of pension obligations, but the discount rate is the most significant factor that will change year on year.
The Group determines the appropriate discount rate at the end of each year. This is the interest rate that is used to determine the present value of estimated future cash outflows expected to be required to settle the pension obligations. In determining the appropriate discount rate, the Group considers the interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid and that have terms to maturity approximating the terms of the related pension obligation.
Further details are provided in Note\u00a031 Retirement benefit obligations and long-term benefits.
\u00a0
The Group is subject to income taxes in numerous jurisdictions. Significant judgement is required in determining the worldwide current and deferred tax. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The Group assumes in the estimates that all tax positions that are not yet final will be examined by tax authorities, that have all relevant information available. The Group recognises deferred tax assets only to the extent that it is probable that future taxable profits will be available. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences are analysed and will impact the income tax and deferred tax assets or liabilities in the year in which such determination is made.
\u00a0
The own damage reserve is based on estimations with respect to incurred but not reported claims. Techniques applied are statistical modelling based on empirical data and assumptions on future claim development, policyholder behaviour and inflation. The assumptions may differ from the actual data as a result of changes in economic and market conditions.
\u00a0
Income related to lease services is recognised over the term of the contract based on historical statistics and on assumptions regarding expected service costs. The assumptions may differ from the actual data as a result of changes in economic and market conditions and are periodically back tested and adjusted if considered necessary. For details in relation to the accounting of Note 3.4.20 Revenue recognition.
\u00a0\u00a0\u00a0
For litigation, when there is a legal or constructive obligation and it is more likely than not that there will be an outflow of benefits which can be measured reliably, the best estimate of the future outflow of resources has been recognised. In extremely rare situations where no reliable estimate can be made yet on claims expected, no provision will be recognised in the balance sheet but information about a contingent liability will be disclosed.
Every quarter it is assessed whether the litigation provisions are still sufficient and or still relevant.\u00a0
Further details are provided in Note\u00a032 Provisions.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAccountingJudgementsAndEstimatesExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_4d6cae10-6f51-4ac2-a51d-dd9f76a5ccfc": { "value": "Change in presentationPresentation of depreciation of rental fleet in the income statementAs part of the integration of LeasePlan and ALD, Ayvens Management also reviewed and updated the presentation of depreciation of rental fleet in the income statement.From 31\u00a0December 2024, income statement caption \u201cUsed Car Sales result\u201d has been renamed to \u201cUsed Car Sales result and depreciation adjustments\u201d. The contents of this caption now include an assessment of residual values and prospective depreciation adjustments of the rental fleet which were reclassified from the caption \u201cLeasing costs \u2013 depreciation\u201d in the \u201cLeasing margin\u201d.Residual value continues to be treated as an accounting estimate in accordance with IAS\u00a08 and is revised as part of the Group residual values assessment process and in accordance with the Group policy. Revision of residual values is by nature an anticipation of future Used Car Sales results. The Leasing margin, which is based on contractually agreed terms, is now presented excluding these market related revisions and changes in the depreciation costs as they are not derived from changes to contractual activities and do not impact contractually agreed rental payments from our customers. This presentation provides more relevance and transparency and will improve stakeholders\u2019 understanding and evaluation of the financial performance of the Group as well as comparability with industry competitors.Depreciation adjustments from purchase price allocations performed for the acquisition accounting and a release of previous depreciation adjustments for the vehicles sold in the current reporting period have now been moved from \u201cCost of cars sold\u201d to a dedicated caption \u201cDepreciation adjustments\u201d within the same subtotal \u201cUsed Car Sales result and depreciation adjustments\u201d.There has been a further reclassification of short-term rental fleet depreciation costs to \u201cCost of services revenues\u201d which was erroneously included in \u201cLeasing costs \u2013 depreciation\u201d in 2023, in total amount of EUR\u00a067.9\u00a0million.Comparative period ending 31\u00a0December 2023 has been restated to reflect all the above changes. These restatements have no impact on the gross operating or Net income of the Group.Impacts of all reclassifications to the Group\u2019s 2023 comparative amounts and changes in the presentation are disclosed below at the end of this section.SegmentationIn 2024, management has decided to change the structure of the management oversight and monitoring, to reflect the change in responsibilities for the Group Regional Directors and Group Deputy CEOs after the Group restructuring following acquisition. The new management structure will now be governed by 4 regions (see allocation of countries below).\u00a0The organisation of the supporting functions (Finance, HR and Risk) were also aligned to the new regions.\u00a0The Group implemented this revised regional segmentation to align its internal management and reporting structure with its strategic priorities and evolving market presence and the synergies expected part of this new organisation. The four regions are considered as the operating segments as defined under IFRS\u00a08.Previously, the Group\u2019s operations were segmented into the following four regions:Western Europe: France, Germany, Netherlands, Belgium, Luxembourg, Italy, UK, Ireland, Spain, and Portugal;Central and Eastern Europe: Austria, Switzerland, Bulgaria, Czech Republic, Greece, Poland, Romania, Slovakia, Turkey, Ukraine, Croatia, Hungary, Serbia, Slovenia, Estonia, Latvia, Lithuania;Northern Europe: Denmark, Finland, Norway, and Sweden;South America, Africa, Asia and Rest of the World: Brazil, Chile, Colombia, Mexico, Peru, India, Malaysia, Algeria and UAE (not consolidated).This structure has been replaced with a new regional segmentation:region\u00a01: France, Portugal, Brazil, Chile, Colombia, Mexico, Peru, and Algeria;region\u00a02: Bulgaria, Italy, UK, Ireland, Czech Republic, Greece, Poland, Romania, Slovakia, Turkey, Ukraine, Croatia, Hungary, Serbia, Slovenia, and UAE (not consolidated);region\u00a03: Netherlands, Belgium, Denmark, Finland, Luxembourg, Norway, Estonia, Latvia, Lithuania, and Sweden;region\u00a04: Austria, Germany, Switzerland, Spain, India, and Malaysia.The segment information for the prior reporting period has been restated to align to the new regional segmentation.Goodwill allocationFollowing the restructuring of the Group\u2019s operating segments into four regions including how management views the various operations of the Group, the allocation of goodwill has been revised in alignment with the new regional segmentation.Management decided that the goodwill will no longer be allocated at country level but at regional level. Therefore, historical goodwill has been reallocated to the 4 regions which correspond to the new groups of cash generating units.For the LeasePlan goodwill, the Group used a relative value method based on the factors that have driven the valuation to allocate the goodwill to the aggregated CGUs.Impairment testing for goodwill is now performed at the regional CGU level, reflecting the new segmentation. In terms of unit of account, the historic goodwill and the LeasePlan goodwill are tested as a whole, based on the region allocated. This level of unit of account, reflects the restructuring to one combined operating entity at regional level and the synergies achieved at regional level.To ensure consistency with the new segment structure, comparative information on goodwill allocation has been restated. This restatement does not affect the total carrying amount of goodwill or previously reported financial results but reflects the updated allocation to the regional CGUs.\u00a0Goodwill allocation reported 202331\u00a0December 2023ReportedNew allocationFrance212.0Region 1Germany35.2Region 4Germany (Fleetpool)14.6Region 4Italy50.2Region 2Spain128.0Region 4UK22.6Region 2Benelux56.9Region 3Nordics Hub18.3Region 3South Eastern Europe Hub9.5Region 2North Eastern Europe Hub1.4Region 3Central Europe Hub31.5Region 4LeasePlan1,548.1\u00a0Total2,128.3\u00a0\u00a0Goodwill allocation restated 202331\u00a0December 2023RestatedCountry212.0LeasePlan455.6Region 1667.6Country82.3LeasePlan355.6Region 2437.9Country76.6LeasePlan462.7Region 3539.3Country209.3LeasePlan274.2Region 4483.5Total2,128.3\u00a0The 31\u00a0December 2023 reported Goodwill include for Germany Fleetpool and for LeasePlan the Goodwill after the PPA update and error correction, refer to further details in the paragraph \u201cErrors\u201d below.", "dimensions": { "concept": "ifrs-full:DescriptionOfReasonForReclassificationOrChangesInPresentation", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_65859b37-ffb8-4192-a4b1-0d84b9f05b44": { "value": "As part of the integration of LeasePlan and ALD, Ayvens Management also reviewed and updated the presentation of depreciation of rental fleet in the income statement.
From 31\u00a0December 2024, income statement caption \u201cUsed Car Sales result\u201d has been renamed to \u201cUsed Car Sales result and depreciation adjustments\u201d. The contents of this caption now include an assessment of residual values and prospective depreciation adjustments of the rental fleet which were reclassified from the caption \u201cLeasing costs \u2013 depreciation\u201d in the \u201cLeasing margin\u201d.
Residual value continues to be treated as an accounting estimate in accordance with IAS\u00a08 and is revised as part of the Group residual values assessment process and in accordance with the Group policy. Revision of residual values is by nature an anticipation of future Used Car Sales results. The Leasing margin, which is based on contractually agreed terms, is now presented excluding these market related revisions and changes in the depreciation costs as they are not derived from changes to contractual activities and do not impact contractually agreed rental payments from our customers. This presentation provides more relevance and transparency and will improve stakeholders\u2019 understanding and evaluation of the financial performance of the Group as well as comparability with industry competitors.
Depreciation adjustments from purchase price allocations performed for the acquisition accounting and a release of previous depreciation adjustments for the vehicles sold in the current reporting period have now been moved from \u201cCost of cars sold\u201d to a dedicated caption \u201cDepreciation adjustments\u201d within the same subtotal \u201cUsed Car Sales result and depreciation adjustments\u201d.
There has been a further reclassification of short-term rental fleet depreciation costs to \u201cCost of services revenues\u201d which was erroneously included in \u201cLeasing costs \u2013 depreciation\u201d in 2023, in total amount of EUR\u00a067.9\u00a0million.
Comparative period ending 31\u00a0December 2023 has been restated to reflect all the above changes. These restatements have no impact on the gross operating or Net income of the Group.
Impacts of all reclassifications to the Group\u2019s 2023 comparative amounts and changes in the presentation are disclosed below at the end of this section.
In 2024, management has decided to change the structure of the management oversight and monitoring, to reflect the change in responsibilities for the Group Regional Directors and Group Deputy CEOs after the Group restructuring following acquisition. The new management structure will now be governed by 4 regions (see allocation of countries below).\u00a0
The organisation of the supporting functions (Finance, HR and Risk) were also aligned to the new regions.\u00a0
The Group implemented this revised regional segmentation to align its internal management and reporting structure with its strategic priorities and evolving market presence and the synergies expected part of this new organisation. The four regions are considered as the operating segments as defined under IFRS\u00a08.
Previously, the Group\u2019s operations were segmented into the following four regions:
This structure has been replaced with a new regional segmentation:
The segment information for the prior reporting period has been restated to align to the new regional segmentation.
Following the restructuring of the Group\u2019s operating segments into four regions including how management views the various operations of the Group, the allocation of goodwill has been revised in alignment with the new regional segmentation.
Management decided that the goodwill will no longer be allocated at country level but at regional level. Therefore, historical goodwill has been reallocated to the 4 regions which correspond to the new groups of cash generating units.
For the LeasePlan goodwill, the Group used a relative value method based on the factors that have driven the valuation to allocate the goodwill to the aggregated CGUs.
Impairment testing for goodwill is now performed at the regional CGU level, reflecting the new segmentation. In terms of unit of account, the historic goodwill and the LeasePlan goodwill are tested as a whole, based on the region allocated. This level of unit of account, reflects the restructuring to one combined operating entity at regional level and the synergies achieved at regional level.
To ensure consistency with the new segment structure, comparative information on goodwill allocation has been restated. This restatement does not affect the total carrying amount of goodwill or previously reported financial results but reflects the updated allocation to the regional CGUs.
\u00a0
Goodwill allocation reported 2023 | 31\u00a0December 2023 Reported | New allocation |
|---|---|---|
France | 212.0 | Region 1 |
Germany | 35.2 | Region 4 |
Germany (Fleetpool) | 14.6 | Region 4 |
Italy | 50.2 | Region 2 |
Spain | 128.0 | Region 4 |
UK | 22.6 | Region 2 |
Benelux | 56.9 | Region 3 |
Nordics Hub | 18.3 | Region 3 |
South Eastern Europe Hub | 9.5 | Region 2 |
North Eastern Europe Hub | 1.4 | Region 3 |
Central Europe Hub | 31.5 | Region 4 |
LeasePlan | 1,548.1 | \u00a0 |
Total | 2,128.3 | \u00a0 |
\u00a0
Goodwill allocation restated 2023 | 31\u00a0December 2023 Restated |
|---|---|
Country | 212.0 |
LeasePlan | 455.6 |
Region 1 | 667.6 |
Country | 82.3 |
LeasePlan | 355.6 |
Region 2 | 437.9 |
Country | 76.6 |
LeasePlan | 462.7 |
Region 3 | 539.3 |
Country | 209.3 |
LeasePlan | 274.2 |
Region 4 | 483.5 |
Total | 2,128.3 |
\u00a0
The 31\u00a0December 2023 reported Goodwill include for Germany Fleetpool and for LeasePlan the Goodwill after the PPA update and error correction, refer to further details in the paragraph \u201cErrors\u201d below.
", "dimensions": { "concept": "ifrs-full:DisclosureOfReclassificationsOrChangesInPresentationExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_2a8c68b6-4918-4790-9632-2fbd726fc562": { "value": "In 2024, management has decided to change the structure of the management oversight and monitoring, to reflect the change in responsibilities for the Group Regional Directors and Group Deputy CEOs after the Group restructuring following acquisition. The new management structure will now be governed by 4 regions (see allocation of countries below).\u00a0
The organisation of the supporting functions (Finance, HR and Risk) were also aligned to the new regions.\u00a0
The Group implemented this revised regional segmentation to align its internal management and reporting structure with its strategic priorities and evolving market presence and the synergies expected part of this new organisation. The four regions are considered as the operating segments as defined under IFRS\u00a08.
Previously, the Group\u2019s operations were segmented into the following four regions:
This structure has been replaced with a new regional segmentation:
The segment information for the prior reporting period has been restated to align to the new regional segmentation.
Following the restructuring of the Group\u2019s operating segments into four regions including how management views the various operations of the Group, the allocation of goodwill has been revised in alignment with the new regional segmentation.
Management decided that the goodwill will no longer be allocated at country level but at regional level. Therefore, historical goodwill has been reallocated to the 4 regions which correspond to the new groups of cash generating units.
For the LeasePlan goodwill, the Group used a relative value method based on the factors that have driven the valuation to allocate the goodwill to the aggregated CGUs.
Impairment testing for goodwill is now performed at the regional CGU level, reflecting the new segmentation. In terms of unit of account, the historic goodwill and the LeasePlan goodwill are tested as a whole, based on the region allocated. This level of unit of account, reflects the restructuring to one combined operating entity at regional level and the synergies achieved at regional level.
To ensure consistency with the new segment structure, comparative information on goodwill allocation has been restated. This restatement does not affect the total carrying amount of goodwill or previously reported financial results but reflects the updated allocation to the regional CGUs.
\u00a0
Goodwill allocation reported 2023 | 31\u00a0December 2023 Reported | New allocation |
|---|---|---|
France | 212.0 | Region 1 |
Germany | 35.2 | Region 4 |
Germany (Fleetpool) | 14.6 | Region 4 |
Italy | 50.2 | Region 2 |
Spain | 128.0 | Region 4 |
UK | 22.6 | Region 2 |
Benelux | 56.9 | Region 3 |
Nordics Hub | 18.3 | Region 3 |
South Eastern Europe Hub | 9.5 | Region 2 |
North Eastern Europe Hub | 1.4 | Region 3 |
Central Europe Hub | 31.5 | Region 4 |
LeasePlan | 1,548.1 | \u00a0 |
Total | 2,128.3 | \u00a0 |
\u00a0
Goodwill allocation restated 2023 | 31\u00a0December 2023 Restated |
|---|---|
Country | 212.0 |
LeasePlan | 455.6 |
Region 1 | 667.6 |
Country | 82.3 |
LeasePlan | 355.6 |
Region 2 | 437.9 |
Country | 76.6 |
LeasePlan | 462.7 |
Region 3 | 539.3 |
Country | 209.3 |
LeasePlan | 274.2 |
Region 4 | 483.5 |
Total | 2,128.3 |
\u00a0
The 31\u00a0December 2023 reported Goodwill include for Germany Fleetpool and for LeasePlan the Goodwill after the PPA update and error correction, refer to further details in the paragraph \u201cErrors\u201d below.
During the reporting period, the Group implemented a new regional structure for its operating segments, which reflects a strategic alignment with its management structure following the acquisition and integration of LeasePlan. The Group has appointed a new leadership team where the members of the Executive Committee hold supervisory responsibilities in line with the new regional structure of four regions. The new regional segmentation corresponds to the updated management structure. To ensure consistency and enhance decision-making, the new regional segmentation has been implemented across the Group\u2019s budgeting and internal reporting processes. Supporting departments, such as finance and human resources, have been restructured to align with the regional segments, creating an uniform approach to operational support.
The new regional segmentation comprises 4 regions with the following countries per region:
The performance of the operating segments is assessed based on a measure of revenue and profit before tax as presented in the consolidated financial statements. None of the Group\u2019s customers represent more than 10% of the total revenue.
\u00a0
\u00a0
(in EUR million) | Year ended 31\u00a0December 2024 | |||
|---|---|---|---|---|
Rental fleet | Total assets | Net financial debt | Revenue from external customers | |
Region 1 | 11,333.7 | 16,850.8 | 9,800.3 | 5,369.1 |
Region 2 | 16,949.1 | 24,913.7 | 14,286.2 | 8,390.7 |
Region 3 | 13,737.9 | 19,257.1 | 15,606.5 | 6,535.5 |
Region 4 | 9,529.3 | 14,094.2 | 9,316.4 | 5,055.9 |
TOTAL | 51,550.0 | 75,115.8 | 49,009.4 | 25,351.1 |
\u00a0
(in EUR million) | Year ended 31\u00a0December 2023 | |||
|---|---|---|---|---|
Rental fleet | Total assets | Net financial debt | Revenue from external customers | |
Region 1 | 10,912.9 | 15,550.7 | 9,336.1 | 4,096.8 |
Region 2 | 16,556.7 | 23,526.0 | 13,556.3 | 6,093.3 |
Region 3 | 12,825.0 | 17,431.6 | 13,622.6 | 4,637.3 |
Region 4 | 9,496.5 | 13,876.6 | 8,899.6 | 4,055.3 |
TOTAL | 49,791.2 | 70,384.8 | 45,414.5 | 18,882.7 |
\u00a0
Sales between segments are carried out at arm\u2019s length. The revenue from external parties reported to the Board of Directors is measured in a manner consistent with that in the income statement. There has been no inter-segment revenue for year ending 31\u00a0December 2024 and 2023.
\u00a0
(in EUR million) | Year ended 31\u00a0December | |
|---|---|---|
2024 | 2023 | |
Leasing revenues | 11,016.8 | 8,032.6 |
Service revenues | 5,451.0 | 4,391.2 |
Proceeds of cars sold | 8,883.3 | 6,458.8 |
Revenue from external customers | 25,351.1 | 18,882.7 |
Revenue from external customers and Rental Fleet by countries with Revenues in excess of EUR\u00a01\u00a0billion are detailed below:
(in EUR million) | Year ended 31\u00a0December 2024 | Year ended 31\u00a0December 2023 | Year ended 31\u00a0December 2024 | Year ended 31\u00a0December 2023 |
|---|---|---|---|---|
Revenue from external customers | Revenue from external customers | Rental fleet | Rental fleet | |
France | 3,805.8 | 3,003.1 | 8,794.0 | 8,139.0 |
Italy | 2,994.6 | 2,198.8 | 6,605.6 | 6,303.0 |
United Kingdom | 2,813.2 | 2,004.0 | 5,554.8 | 5,520.3 |
Netherlands | 2,406.7 | 1,925.1 | 5,474.8 | 4,084.1 |
Germany | 2,372.0 | 1,726.9 | 4,134.2 | 5,389.9 |
Spain | 1,839.5 | 1,553.2 | 3,888.4 | 3,967.0 |
Belgium | 1,627.9 | 1,157.3 | 3,612.5 | 3,340.5 |
Other countries | 7,491.4 | 5,314.3 | 13,485.7 | 13,047.4 |
TOTAL | 25,351.1 | 18,882.7 | 51,550.0 | 49,791.2 |
In the UK, it was common practice for intermediaries to introduce business to financing companies and to receive a commission in return.
On 28\u00a0January 2021, the Financial Conduct Authority (FCA) banned the practice of Discretionary Commissions Arrangements (DCAs) which were commonly used in connection with regulated credit agreements. Under DCAs, the credit broker increased the interest rate paid by the customer and kept some or all of the difference between the rate set by the lender and what the customer paid, as a commission from the lender to the credit broker.
Following the Financial Ombudsman Service (FOS) decision in favour of complainants against lenders and regarding the use of DCAs on 10 January 2024, the FCA announced their review into historic DCAs on 11 January 2024. The FCA announce of their review was after the end of financial year 2023 but before the financial statements for this reporting period had been issued.
In accordance with IAS\u00a010, \u00a0events after the reporting period which provide evidence of conditions that existed at the end of the reporting period are considered as adjusting events. As all conditions for the recognition of a provision under IAS 37 were met, a provision should have been booked at end of financial year 2023.
We therefore consider the omission of a provision for motor finance commissions from the 2023 financial statements a prior period error, as per the IAS\u00a08 definition, for the Group. The Group recognised EUR\u00a069.3\u00a0million provision, of which EUR\u00a043.8\u00a0million related to the former LeasePlan UK and of which EUR\u00a025.5\u00a0million related to ALD UK.
In addition a provision regarding consumer law breaches relating to certain products (Employee Car Ownership Scheme) have been recognised for the amount of EUR\u00a024.5\u00a0million and other provisions for the amount of EUR\u00a05.2\u00a0million, all related to the former LeasePlan UK.\u00a0
The provisions relating to former LeasePlan UK were considered as a correction of error in the PPA and booked against the goodwill for an amount of \u00a0of EUR\u00a055.0\u00a0million and deferred tax for an amount of EUR\u00a018.5\u00a0million.
The ALD UK provision of EUR\u00a025.5\u00a0million has been charged to the cost of service revenues in the income statement of 2023. In addition a deferred tax has been recognised of EUR\u00a06.4\u00a0million.
Following the ruling by the Court of Appeal in October\u00a02024, the provision for motor finance commissions was increased to EUR\u00a093\u00a0million, through Profit or Loss, \u00a0to include car finance agreements involving non-discretionary commissions to cover for the extension of the scope.
In the first semester of 2024, a computational error in calculating depreciation of the vehicles (short-term rentals) was discovered in the subsidiary Fleetpool. The error resulted in an understatement of depreciation costs recognised in the 2023 income statement and a corresponding overstatement of the Rental fleet.
Due to the error mentioned above and other risks that were present but not fully assessed or included in the future discounted cash flows used in the 2023 impairment test, the Group recognised a further impairment of the goodwill in Fleetpool for EUR\u00a014.7\u00a0million, in addition to EUR\u00a023.7\u00a0million impairment recognised in the income statement in 2023.
Both errors have been accounted for in equity with a restatement of the closing amounts of goodwill and Rental fleet as at 31\u00a0December 2023.
Following the correction of impairment of goodwill in 2023, the Group reperformed a goodwill impairment test for Fleetpool with an updated business plan. The test resulted in the same recoverable amount of the subsidiary, hence no additional impairment of goodwill is required in 2024. The Group has completed the integration of Fleetpool\u2019s operations and technology in August\u00a02024, and Fleetpool is now part of Ayvens Germany.
In addition to the correction of the errors mentioned above, closing amounts of assets and liabilities as of 31\u00a0December 2023 were restated to reflect adjustments to the provisional allocations performed for the acquisition accounting.
(in EUR million) | Notes | 31\u00a0December 2023 Reported | Fair value adjustments (PPA update)\u00a0(1) | PPA update \u2013 amortisation and depreciation\u00a0(1) | Prior period error correction | 31\u00a0December 2023 Restated |
|---|---|---|---|---|---|---|
Rental fleet | 13 | 49,765.2 | 55.5 | (19.7) | (9.9) | 49,791.2 |
Goodwill | 16 | 1,990.9 | 152.1 | - | (14.7) | 2,128.2 |
Other intangible assets | 17 | 703.9 | (58.0) | - | - | 645.9 |
Investments in associates and jointly controlled entities | 18 | 56.7 | (23.3) | - | - | 33.4 |
Deferred tax assets | 12 | 314.5 | 44.7 | 5.1 | 6.4 | 370.8 |
Receivables from clients and financial institutions | 22, 23 | 7,648.6 | (13.5) | (1.1) | - | 7,634.0 |
Other assets | \u00a0 | 9,781.2 | - | - | - | 9,781.2 |
Total assets | \u00a0 | 70,261.1 | 157.5 | (15.7) | (18.2) | 70,384.8 |
Deferred tax liabilities | 12 | 1,294.9 | 9.3 | - | (3.2) | 1,301.1 |
Trade and other payables | 33 | 6,034.7 | 72.0 | - | - | 6,106.7 |
Provisions | 32 | 909.5 | 76.2 | - | 25.5 | 1,011.2 |
Other liabilities | \u00a0 | 50,670.3 | - | - | - | 50,670.3 |
Total liabilities | \u00a0 | 58,909.5 | 157.6 | - | 22.3 | 59,089.3 |
Equity | \u00a0 | 10,535.5 | - | - | - | 10,535.5 |
Net income 2023 | \u00a0 | 816.2 | 0.1 | (15.7) | (40.5) | 760.2 |
Total equity | \u00a0 | 11,351.7 | 0.1 | (15.7) | (40.5) | 11,295.7 |
|
\u00a0
(In EUR million) | Notes | For the period ended | PPA adjustments | Depreciation and goodwill impairment - Fleetpool | Prior period error correction | Change in presentation | Short-term rental fleet depreciation reclassification | For the period ended Restated |
|---|---|---|---|---|---|---|---|---|
Leasing revenues | 8a, 8d | 8,033.7 | (1.1) | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 8,032.6 |
Leasing costs - depreciation | 8a | (5,685.7) | \u00a0 | \u00a0 | \u00a0 | (553.2) | 67.9 | (6,171.0) |
Leasing costs - financing | 8a | (1,044.7) | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | (1,044.7) |
Unrealised gains/losses on financial instruments and\u00a0other | \u00a0 | (41.4) | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | (41.4) |
Leasing margin | \u00a0 | 1,261.9 | (1.1) | - | - | (553.2) | 67.9 | 775.5 |
Services revenues | 8b, 8d | 4,391.2 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 4,391.2 |
Cost of services revenues | 8b | (3,037.0) | \u00a0 | (9.9) | (25.5) | \u00a0 | (67.9) | (3,140.4) |
Services margin | \u00a0 | 1,354.2 | - | (9.9) | (25.5) | - | (67.9) | 1,250.9 |
Proceeds of cars sold | 8c, 8d | 6,458.8 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 6,458.8 |
Cost of cars sold | 8c | (6,109.3) | (19.7) | \u00a0 | \u00a0 | 748.6 | \u00a0 | (5,380.3) |
Depreciation costs adjustments | 8c | - | \u00a0 | \u00a0 | \u00a0 | (195.4) | \u00a0 | (195.4) |
Used car sales result and\u00a0depreciation adjustments | \u00a0 | 349.5 | (19.7) | \u00a0 | \u00a0 | 553.2 | \u00a0 | 883.1 |
Gross operating Income | \u00a0 | 2,965.6 | (20.8) | (9.9) | (25.5) | - | - | 2,909.5 |
Staff expenses | \u00a0 | (936.1) | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | (936.1) |
General and administrative expenses | \u00a0 | (519.5) | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | (519.5) |
Depreciation and amortisation | \u00a0 | (136.0) | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | (136.0) |
Total operating expenses | \u00a0 | (1,591.6) | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | (1,591.6) |
Impairment charges on receivables | \u00a0 | (70.7) | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | (70.7) |
Other income/(expense) | \u00a0 | (14.0) | \u00a0 | (14.7) | \u00a0 | \u00a0 | \u00a0 | (28.7) |
OPERATING RESULT | \u00a0 | 1,289.3 | (20.8) | (24.6) | (25.5) | \u00a0 | - | 1,218.5 |
Share of profit of associates and jointly controlled entities | \u00a0 | 6.4 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | 6.4 |
Profit before tax | \u00a0 | 1,295.7 | (20.8) | (24.6) | (25.5) | \u00a0 | \u00a0 | 1,224.9 |
Income tax expense | 12 | (374.0) | 5.0 | 3.2 | 6.4 | \u00a0 | \u00a0 | (359.4) |
Profit for the period from continuing operations | \u00a0 | 921.7 | (15.8) | (21.4) | (19.1) | \u00a0 | \u00a0 | 865.5 |
Loss after tax for the period from\u00a0discontinued operations | \u00a0 | (77.6) | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | (77.6) |
NET INCOME | \u00a0 | 844.1 | (15.8) | (21.4) | (19.1) | - | - | 787.9 |
\u00a0
The Group has adopted the following new standards, amendments and interpretations to published standards for the first time for the financial year starting on 1\u00a0January 2024:
Accounting standards, amendments or Interpretations | Adoption dates by The\u00a0European Union |
|---|---|
Classification of Liabilities as Current or Non-current\u00a0\u2013 Amendments to IAS\u00a01 | 1\u00a0January 2024 |
Lease Liability in a Sale and Leaseback\u00a0\u2013 Amendments to IFRS\u00a016 | 1\u00a0January 2024 |
Supplier Finance Arrangements\u00a0\u2013 Amendments to IAS\u00a07 and IFRS\u00a07 | 1\u00a0January 2024 |
\u00a0
The amendments listed above did not have any impact on the amounts recognised in prior periods and are not expected to significantly affect the current or future periods.
IASB publishes accounting standards, amendments and interpretations, some of which have not been adopted by the European Union as at 31\u00a0December 2024. They are required to be applied from annual periods beginning on 1\u00a0January 2025 at the earliest or on the date of their adoption by the European Union. They were therefore not applied by the Group as at 31\u00a0December 2024. These amendments are not expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions.
In April\u00a02024, the IASB issued a new Standard, IFRS\u00a018, Presentation and Disclosure in Financial statements, which replaces IAS\u00a01, Presentation of Financial Statements. The new Standard carries forward many requirements from IAS\u00a01 unchanged. IFRS\u00a018 is the culmination of the IASB\u2019s Primary Financial Statements project and introduces three sets of new requirements to improve companies\u2019 reporting of financial performance and give investors a better basis for analysing and comparing companies:
IFRS\u00a018 is effective for annual reporting periods beginning on or after 1\u00a0January 2027, with earlier application permitted. The Group is currently assessing the impact on its consolidated financial statements.
In August\u00a02023, the IASB issued amendments to IAS\u00a021. The amendments specify when a currency is exchangeable into another currency and when it is not, and how an entity determines the exchange rate to apply when a currency is not exchangeable. The amendments also require additional information to be disclosed when a currency is not exchangeable. The amendments are effective for annual periods beginning on or after 1\u00a0January 2025. The Group does not anticipate that the application of these amendments will have a significant effect on the future consolidated financial statements.
The International Accounting Standards Board (IASB) has issued \u201cAmendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS\u00a09 and IFRS\u00a07)\u201d. The amendments to IFRS\u00a09 include guidance on the classification of financial assets, including those with contingent features which can be ESG-linked features or other types of contingent features. As a result of amendments to IFRS\u00a07 companies will be required to provide additional disclosures on financial assets and financial liabilities that have certain contingent features. The amendments are effective for reporting periods beginning on or after 1\u00a0January 2026. These amendments are not expected to have an impact on the Group\u2019s consolidated financial statements since there are currently no financial assets with ESG-linked features or other contingent features. As this might change in the future the Group will monitor new financial assets for such features.
The International Accounting Standards Board (IASB) has issued Annual Improvements Volume\u00a011\u2019. Annual improvements provide a mechanism for the IASB to efficiently issue a collection of minor amendments to the Accounting Standards. In accordance with the IASB\u2019s due process as described in the IFRS Foundation Due Process Handbook, annual improvements are limited to changes that either clarify the wording in an Accounting Standard or correct relatively minor unintended consequences, oversights or conflicts between the requirements in the Accounting Standards. The amendments are effective for reporting periods beginning on or after 1\u00a0January 2026. Given the nature of the changes, the Group does not expect these changes to have a material impact on its future consolidated statements.
", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesAccountingEstimatesAndErrorsExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_24a6a3c4-84e0-4a9b-ba79-adb8a8215935": { "value": "At 31\u00a0December 2024, all companies are fully consolidated, except three companies accounted for using the equity method. For more details, please refer to Note\u00a018, Investments in associates and jointly controlled entities. Changes in the scope of consolidation compared to 31\u00a0December 2023 are as follows:
The consolidated financial statements incorporate the financial statements of the Company and its subsidiaries as listed in Note\u00a041. Changes to the entities consolidated in the year ended 31\u00a0December 2024 are explained in Note\u00a03.1.
Subsidiaries are all entities which the Group controls. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.
Inter-company transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses are also eliminated. When necessary, amounts reported by subsidiaries have been adjusted to conform to the Group\u2019s accounting policies.
For non-wholly owned subsidiaries, non-controlling interests are presented in equity separately from the equity attributable to shareholders of the Group. Profit or loss and other comprehensive income are attributed to the shareholders of the Group and to non-controlling interests even if this results in the non-controlling interests having a deficit balance. Changes in ownership interest in subsidiaries that do not result in a change in control are accounted for in equity. The carrying amounts of the controlling and non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiary. Any difference between the amount by which the non-controlling interest is adjusted and the fair value of the consideration paid or received is recorded directly in equity and attributed to the shareholders of the Group.
\u00a0
The Group applies the acquisition method to account for business combinations.
The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred to the former owners of the Group acquired and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date in accordance with IFRS\u00a03. The Group recognises any non-controlling interest in the company acquired on an acquisition-by-acquisition basis, either at fair value or at the non-controlling interest\u2019s proportionate share of the recognised amounts of acquiree\u2019s identifiable net assets.
Acquisition-related costs are expensed as incurred.
\u00a0
Associates are investments over which the Group has significant influence, which is the power to participate in the financial and operating policy decisions of the investee, but without the ability to exercise control or joint control. Typically, the Group owns between 20% and 50% of the voting equity of its associates.
The Group accounts for its investment in associates using the equity method. The Group\u2019s share of profits or losses of associates is recognised in the consolidated statement of income and its share of other comprehensive income (loss) of associates is included in other comprehensive income.
Unrealised gains on transactions between the Group and an associate are eliminated to the extent of the Group\u2019s interest in the associate. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Dilution gains and losses arising from changes in interests in investments in associates are recognised in the consolidated statement of income.
\u00a0
Joint arrangements are arrangements in which the Group shares joint control with one or more parties. Joint control is the contractually agreed sharing of control of an arrangement, and exists only when decisions about the activities that significantly affect the arrangement\u2019s returns require the unanimous consent of the parties sharing control.
Judgement is required in determining this classification through an evaluation of the facts and circumstances arising from each individual arrangement. Joint arrangements are classified as either joint operations or joint ventures based on the rights and obligations of the parties to the arrangement. In joint operations, the parties have rights to the assets and obligations for the liabilities relating to the arrangement, whereas in joint ventures, the parties have rights to the net assets of the arrangement. The Group has assessed the nature of its joint arrangements and determined them to be joint ventures.
Investments in joint ventures are accounted for using the equity method of accounting except when classified as held for sale. The Group\u2019s share of associates\u2019 and joint ventures\u2019 Net income is based on their most recent audited financial statements or unaudited interim statements drawn up to the Group\u2019s balance sheet date. Accounting policies of the joint ventures are modified where necessary to ensure consistency with the policies adopted by the Group.
The total carrying values of investments in joint ventures represent the cost of each investment including the carrying value of goodwill, the share of post-acquisition retained earnings, any other movements in reserves and any long-term debt interests which in substance form part of the Group\u2019s net investment, less any cumulative impairments. The carrying values of associates and joint ventures are reviewed on a regular basis and if there is objective evidence that an impairment in value has occurred as a result of one or more events during the period, the investment is impaired. Investments which have been previously impaired are regularly reviewed for indicators of impairment reversal.
The Group\u2019s share of an associate\u2019s or joint venture\u2019s losses in excess of its interest in that associate or joint venture is not recognised unless the Group has an obligation to fund such losses. Unrealised gains arising from transactions with associates and joint ventures are eliminated against the investment to the extent of the Group\u2019s interest in the investee. Unrealised losses are eliminated in the same way, but only to the extent that there is no evidence of impairment.
\u00a0
Special purpose companies are companies created to accomplish a narrow and well-defined objective, such as the securitisation of leased assets. Details of our asset-backed securitisation programme are described in Note\u00a029 that involve the sale of future lease receivables and related residual value receivables to special purpose companies.
The financial statements of special purpose companies are included in the Group\u2019s consolidated financial statements where the substance of the relationship is that the Group continues to be exposed to risks and rewards from the securitised leased assets. The Group uses various legal entities, which have been incorporated specifically for the Group\u2019s securitisation transactions. These companies are consolidated in the financial statements of the Group based on the substance of the relationship.
\u00a0 Ayvens SA (formerly known as ALD International\u00a0SA) Consolidated companies under global integration | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Parent company | Parent company | |
interest % | interest % | |
ALD Autoleasing Deutschland GmbH\u00a0\u2013 GERMANY (1) | 100.00 | 100.00 |
ALD Automotive A/S\u00a0\u2013 DENMARK | 100.00 | 100.00 |
ALD Automotive\u00a0AB\u00a0\u2013 SWEDEN | 100.00 | 100.00 |
ALD Automotive\u00a0AG\u00a0\u2013 SWITZERLAND | 100.00 | 100.00 |
ALD Automotive Algerie\u00a0SPA | 100.00 | 100.00 |
ALD Automotive DOO BEOGRAD\u00a0\u2013 SERBIA | 100.00 | 100.00 |
ALD Automotive DOO ZA Operativni i Financijski Leasing\u00a0\u2013 CROATIA (1) | 100.00 | 100.00 |
ALD Automotive Eesti\u00a0AS\u00a0\u2013 ESTONIA | 75.01 | 75.01 |
ALD Automotive EOOD\u00a0\u2013 BULGARIA | 100.00 | 100.00 |
ALD Automotive Euro Leasing BV | 50.10 | 50.10 |
ALD Automotive for Cars Rental and Fleet Management\u00a0SAE\u00a0\u2013 EGYPT | 100.00 | 100.00 |
ALD Automotive Fuhrparkmanagement und Leasing\u00a0GmbH\u00a0\u2013 AUSTRIA | 100.00 | 100.00 |
ALD Automotive Group Limited\u00a0\u2013 UK (1) | 100.00 | 100.00 |
ALD Automotive Italia s.r.l | 100.00 | 100.00 |
ALD Automotive Limitada\u00a0\u2013 CHILE | 100.00 | 100.00 |
ALD Automotive Magyarorszag Autopark\u00a0\u2013 kezelo es Finanszirozo KFT\u00a0\u2013 HUNGARY (1) | 100.00 | 100.00 |
ALD Automotive Operational Leasing DOO\u00a0\u2013 SLOVENIA | 100.00 | 100.00 |
ALD Automotive Peru\u00a0SAC | 100.00 | 100.00 |
ALD Automotive Polska Sp z o.o.\u00a0\u2013 POLAND | 100.00 | 100.00 |
ALD Automotive Private Limited\u00a0\u2013 INDIA | 100.00 | 100.00 |
ALD Automotive\u00a0SA\u00a0\u2013 BRAZIL | 100.00 | 100.00 |
ALD Automotive\u00a0SA de CV\u00a0\u2013 MEXICO | 100.00 | 100.00 |
ALD Automotive\u00a0SAS\u00a0\u2013 COLOMBIA | 100.00 | 100.00 |
ALD Automotive SAU\u00a0\u2013 SPAIN (1) | 100.00 | 100.00 |
ALD Automotive SIA\u00a0\u2013 LATVIA | 75.00 | 75.00 |
ALD Automotive Slovakia SRO | 100.00 | 100.00 |
ALD Automotive SRL\u00a0\u2013 ROMANIA | 100.00 | 100.00 |
ALD Automotive SRO\u00a0\u2013 CZECH REPUBLIC | 100.00 | 100.00 |
ALD Automotive Ukraine Limited Liability Company | 100.00 | 100.00 |
ALD Fleet\u00a0SA de CV SOFOM ENR | 100.00 | 100.00 |
ALD International\u00a0SAS & CO KG (1) | 100.00 | 100.00 |
ALD Mul Mobility Services Malaysia SND BHD\u00a0\u2013 MALAYSIA | 60.00 | 60.00 |
ALD Re Designated Activity Company\u00a0\u2013 IRELAND | 100.00 | 100.00 |
Axus Finland\u00a0OY | 100.00 | 100.00 |
Axus Luxembourg SA | 100.00 | 100.00 |
Axus Nederland N.V. (1) (including merged entity Leaseplan Nederland N.V.) | 100.00 | 100.00 |
Axus SA NV\u00a0\u2013 BELGIUM (1) | 100.00 | 100.00 |
Ayvens Bank N.V. (formerly know as LeasePlan Corporation N.V.)\u00a0 | 100.00 | 100.00 |
Ayvens INS (including merged entities \u00a0ALD Insurance and Euro Insurances DAC trading as LeasePlan Insurance) | 100.00 | 100.00 |
Ayvens Ireland Limited (formerly know as LeasePlan Fleet Management Services Ireland Ltd.) | 100.00 | 100.00 |
Ayvens Norge AS (formerly know as LeasePlan Norge A/S) | 100.00 | 100.00 |
Inula Holding UK\u00a0Ltd. | 100.00 | 100.00 |
LeasePlan Brasil\u00a0Ltda. | 100.00 | 100.00 |
LeasePlan (Schweiz)\u00a0AG | 100.00 | 100.00 |
LeasePlan Arrendamento Mercantil\u00a0SA | 100.00 | 100.00 |
LeasePlan Danmark A/S | 100.00 | 100.00 |
LeasePlan Deutschland\u00a0GmbH (including merged entity Fleetpool Holding GmbH) | 100.00 | 100.00 |
LeasePlan Digital B.V. | 100.00 | 100.00 |
LeasePlan Finance B.V. | 100.00 | 100.00 |
LeasePlan Fleet Management (Polska) Sp. z.o.o. | 100.00 | 100.00 |
LeasePlan Fleet Management nv (1) | 100.00 | 100.00 |
LeasePlan Global B.V. | 100.00 | 100.00 |
LeasePlan Group B.V. | 100.00 | 100.00 |
LeasePlan Hellas Commercial\u00a0SA (including merged entity ALD Automotive SA LEase of Cars - GREECE) | 100.00 | 100.00 |
LeasePlan Hung\u00e1ria G\u00e9pj\u00e1rmupark Kezelo \u00e9s Finansz | 100.00 | 100.00 |
LeasePlan India Private\u00a0Ltd. | 100.00 | 100.00 |
LeasePlan Information Services\u00a0Ltd | 100.00 | 100.00 |
LeasePlan Italia\u00a0SpA | 100.00 | 100.00 |
LeasePlan Mexico\u00a0SA de CV | 100.00 | 100.00 |
LeasePlan \u00d6sterreich Fuhrparkmanagement\u00a0GmbH | 100.00 | 100.00 |
LeasePlan Otomotiv Servis ve Ticaret\u00a0AS (including merged entity ALD Automotive Turizm Ticaret Anonim Sirketi\u00a0\u2013 TURKEY) | 100.00 | 100.00 |
LeasePlan Portugal Comercio e Aluguer de Automov | 100.00 | 100.00 |
LeasePlan Romania SRL | 100.00 | 100.00 |
LeasePlan Servicios,\u00a0SA | 100.00 | 100.00 |
LeasePlan Slovakia, s.r.o. | 100.00 | 100.00 |
LeasePlan Sverige\u00a0AB | 100.00 | 100.00 |
NF Fleet A/S\u00a0\u2013 DENMARK | 80.00 | 80.00 |
NF fleet\u00a0AB\u00a0\u2013 SWEDEN | 80.00 | 80.00 |
NF Fleet\u00a0AS\u00a0\u2013 NORWAY | 80.00 | 80.00 |
NF Fleet\u00a0OY\u00a0\u2013 FINLAND | 80.00 | 80.00 |
Soluciones De Renting Movilidad SL | 100.00 | 100.00 |
TEMSYS\u00a0\u2013 France (1) (incuding merged entity LeasePlan France SAS) | 100.00 | 100.00 |
UAB ALD Automotive\u00a0\u2013 LITHUANIA | 75.00 | 75.00 |
UK FFM | 50.10 | 50.10 |
LeasePlan Russia LLC | \u2212 | 100.00 |
ALD Automotive LLC \u2013 BELARUS | \u2212 | 100.00 |
Investments accounted for using the equity method (2) | \u00a0 | \u00a0 |
Flottenmanagement GmbH | 49.00 | 49.00 |
LeasePlan Emirates L.L.C. | 49.00 | 49.00 |
PLease S.C.S. | 99.00 | 99.00 |
Maroc ALD Automotive SA | \u2212 | 35.00 |
|
At 31\u00a0December 2024, all companies are fully consolidated, except three companies accounted for using the equity method. For more details, please refer to Note\u00a018, Investments in associates and jointly controlled entities. Changes in the scope of consolidation compared to 31\u00a0December 2023 are as follows:
The Group classifies non-current assets and disposal groups as held for sale if their carrying amounts will be recovered principally through a sale transaction rather than through continued use. Non-current assets and disposal groups classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell. Costs to sell are the incremental costs directly attributable to the disposal of an asset (disposal group), excluding finance costs and income tax expense.
The criteria for held for sale classification is regarded as met only when the sale is highly probable and the asset or disposal groups is available for immediate sale in its present condition. Actions required to complete the sale should indicate that it is unlikely that significant changes to the sale will be made or that the decision to sell will be withdrawn. Management must be committed to the plan to sell the asset and the sale expected to be completed within one year from the date of the classification.
Property, plant and equipment and intangible assets are not depreciated or amortised once classified as held for sale.
Assets and liabilities classified as held for sale are presented separately as current items in the consolidated balance sheet.
A disposal group qualifies as discontinued operation if it is a component of an entity that either has been disposed of, or is classified as held for sale, and:
The results of discontinued operations are presented separately in the income statement.
Additional disclosures relating to the Group\u2019s Discontinued Operations are provided in Note\u00a07.
\u00a0
At 31\u00a0December 2024, all companies are fully consolidated, except three companies accounted for using the equity method. For more details, please refer to Note\u00a018, Investments in associates and jointly controlled entities. Changes in the scope of consolidation compared to 31\u00a0December 2023 are as follows:
The Group classifies non-current assets and disposal groups as held for sale if their carrying amounts will be recovered principally through a sale transaction rather than through continued use. Non-current assets and disposal groups classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell. Costs to sell are the incremental costs directly attributable to the disposal of an asset (disposal group), excluding finance costs and income tax expense.
The criteria for held for sale classification is regarded as met only when the sale is highly probable and the asset or disposal groups is available for immediate sale in its present condition. Actions required to complete the sale should indicate that it is unlikely that significant changes to the sale will be made or that the decision to sell will be withdrawn. Management must be committed to the plan to sell the asset and the sale expected to be completed within one year from the date of the classification.
Property, plant and equipment and intangible assets are not depreciated or amortised once classified as held for sale.
Assets and liabilities classified as held for sale are presented separately as current items in the consolidated balance sheet.
A disposal group qualifies as discontinued operation if it is a component of an entity that either has been disposed of, or is classified as held for sale, and:
The results of discontinued operations are presented separately in the income statement.
Additional disclosures relating to the Group\u2019s Discontinued Operations are provided in Note\u00a07.
\u00a0
\u00a0
The Group has adopted the following new standards, amendments and interpretations to published standards for the first time for the financial year starting on 1\u00a0January 2024:
Accounting standards, amendments or Interpretations | Adoption dates by The\u00a0European Union |
|---|---|
Classification of Liabilities as Current or Non-current\u00a0\u2013 Amendments to IAS\u00a01 | 1\u00a0January 2024 |
Lease Liability in a Sale and Leaseback\u00a0\u2013 Amendments to IFRS\u00a016 | 1\u00a0January 2024 |
Supplier Finance Arrangements\u00a0\u2013 Amendments to IAS\u00a07 and IFRS\u00a07 | 1\u00a0January 2024 |
\u00a0
The amendments listed above did not have any impact on the amounts recognised in prior periods and are not expected to significantly affect the current or future periods.
IASB publishes accounting standards, amendments and interpretations, some of which have not been adopted by the European Union as at 31\u00a0December 2024. They are required to be applied from annual periods beginning on 1\u00a0January 2025 at the earliest or on the date of their adoption by the European Union. They were therefore not applied by the Group as at 31\u00a0December 2024. These amendments are not expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions.
In April\u00a02024, the IASB issued a new Standard, IFRS\u00a018, Presentation and Disclosure in Financial statements, which replaces IAS\u00a01, Presentation of Financial Statements. The new Standard carries forward many requirements from IAS\u00a01 unchanged. IFRS\u00a018 is the culmination of the IASB\u2019s Primary Financial Statements project and introduces three sets of new requirements to improve companies\u2019 reporting of financial performance and give investors a better basis for analysing and comparing companies:
IFRS\u00a018 is effective for annual reporting periods beginning on or after 1\u00a0January 2027, with earlier application permitted. The Group is currently assessing the impact on its consolidated financial statements.
In August\u00a02023, the IASB issued amendments to IAS\u00a021. The amendments specify when a currency is exchangeable into another currency and when it is not, and how an entity determines the exchange rate to apply when a currency is not exchangeable. The amendments also require additional information to be disclosed when a currency is not exchangeable. The amendments are effective for annual periods beginning on or after 1\u00a0January 2025. The Group does not anticipate that the application of these amendments will have a significant effect on the future consolidated financial statements.
The International Accounting Standards Board (IASB) has issued \u201cAmendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS\u00a09 and IFRS\u00a07)\u201d. The amendments to IFRS\u00a09 include guidance on the classification of financial assets, including those with contingent features which can be ESG-linked features or other types of contingent features. As a result of amendments to IFRS\u00a07 companies will be required to provide additional disclosures on financial assets and financial liabilities that have certain contingent features. The amendments are effective for reporting periods beginning on or after 1\u00a0January 2026. These amendments are not expected to have an impact on the Group\u2019s consolidated financial statements since there are currently no financial assets with ESG-linked features or other contingent features. As this might change in the future the Group will monitor new financial assets for such features.
The International Accounting Standards Board (IASB) has issued Annual Improvements Volume\u00a011\u2019. Annual improvements provide a mechanism for the IASB to efficiently issue a collection of minor amendments to the Accounting Standards. In accordance with the IASB\u2019s due process as described in the IFRS Foundation Due Process Handbook, annual improvements are limited to changes that either clarify the wording in an Accounting Standard or correct relatively minor unintended consequences, oversights or conflicts between the requirements in the Accounting Standards. The amendments are effective for reporting periods beginning on or after 1\u00a0January 2026. Given the nature of the changes, the Group does not expect these changes to have a material impact on its future consolidated statements.
", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_67478370-9b06-4487-ad6b-c406cc43a4e7": { "value": "Subsidiaries are all entities which the Group controls. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.
Inter-company transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses are also eliminated. When necessary, amounts reported by subsidiaries have been adjusted to conform to the Group\u2019s accounting policies.
For non-wholly owned subsidiaries, non-controlling interests are presented in equity separately from the equity attributable to shareholders of the Group. Profit or loss and other comprehensive income are attributed to the shareholders of the Group and to non-controlling interests even if this results in the non-controlling interests having a deficit balance. Changes in ownership interest in subsidiaries that do not result in a change in control are accounted for in equity. The carrying amounts of the controlling and non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiary. Any difference between the amount by which the non-controlling interest is adjusted and the fair value of the consideration paid or received is recorded directly in equity and attributed to the shareholders of the Group.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSubsidiariesExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_9443c08e-ffac-4274-b6dc-9dd9e543df0e": { "value": "The Group applies the acquisition method to account for business combinations.
The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred to the former owners of the Group acquired and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date in accordance with IFRS\u00a03. The Group recognises any non-controlling interest in the company acquired on an acquisition-by-acquisition basis, either at fair value or at the non-controlling interest\u2019s proportionate share of the recognised amounts of acquiree\u2019s identifiable net assets.
Acquisition-related costs are expensed as incurred.
Goodwill arises on the acquisition of subsidiaries, associates and joint ventures and represents the excess of the consideration transferred over the Group\u2019s interest in the net fair value of the net identifiable assets, liabilities and contingent liabilities of the acquirer. Goodwill is measured at cost less any accumulated impairment losses. When the excess is negative (negative goodwill), it is recognised immediately in the statement of income.
For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash-generating units (\u201cCGUs\u201d), or groups of CGUs, which is expected to benefit from the synergies of the combination. Each unit or group of units to which the goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes.
Goodwill is monitored at an aggregated level (\u201cregions\u201d) as internal management reporting is organised to measure performance (and prepare business plans) at a higher level (group of CGUs). The Group identified the 4 following regions:
Goodwill impairment reviews are undertaken annually or more frequently if events or changes in circumstances indicate a potential impairment. The carrying value of goodwill is compared to the recoverable amount, which is the higher of value in use and the fair value less costs to sell. Any impairment is recognised immediately as an expense and is not subsequently reversed.
Further details are provided in Note\u00a016 Goodwill.
In determining whether goodwill is impaired requires an estimation of the value in use of the groups of cash generating units to which the goodwill assets have been allocated. The key assumptions calculating the value in use are those regarding discount rates, growth rates and other expected changes in cash flows. The estimates and assumptions used are disclosed in Note\u00a016 Goodwill of these consolidated financial statements.
The Group tests annually whether goodwill has suffered any impairment, in accordance with the accounting policy stated presented in Note\u00a03.4.6 of these consolidated financial statements. The recoverable amounts of cash-generating units have been determined based on value-in-use calculations. These calculations require the use of estimates. The Group uses a five-year business plan for each of the group of CGUs identified. The business plans used incorporated assumptions relevant to the current economic climate such as fleet growth, used car market and credit risk.
For goodwill, sensitivity tests are carried out to measure the impact on each group of CGU\u2019s recoverable value based on certain assumptions, refer to Note\u00a016 Goodwill.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsAndGoodwillExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_60d39a67-6781-4dc2-93a2-bbb3a035bf9c": { "value": "The Group applies the acquisition method to account for business combinations.
The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred to the former owners of the Group acquired and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date in accordance with IFRS\u00a03. The Group recognises any non-controlling interest in the company acquired on an acquisition-by-acquisition basis, either at fair value or at the non-controlling interest\u2019s proportionate share of the recognised amounts of acquiree\u2019s identifiable net assets.
Acquisition-related costs are expensed as incurred.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_16759b2c-dad4-4af6-9d2a-a7e86a97cc6f": { "value": "Associates are investments over which the Group has significant influence, which is the power to participate in the financial and operating policy decisions of the investee, but without the ability to exercise control or joint control. Typically, the Group owns between 20% and 50% of the voting equity of its associates.
The Group accounts for its investment in associates using the equity method. The Group\u2019s share of profits or losses of associates is recognised in the consolidated statement of income and its share of other comprehensive income (loss) of associates is included in other comprehensive income.
Unrealised gains on transactions between the Group and an associate are eliminated to the extent of the Group\u2019s interest in the associate. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Dilution gains and losses arising from changes in interests in investments in associates are recognised in the consolidated statement of income.
Joint arrangements are arrangements in which the Group shares joint control with one or more parties. Joint control is the contractually agreed sharing of control of an arrangement, and exists only when decisions about the activities that significantly affect the arrangement\u2019s returns require the unanimous consent of the parties sharing control.
Judgement is required in determining this classification through an evaluation of the facts and circumstances arising from each individual arrangement. Joint arrangements are classified as either joint operations or joint ventures based on the rights and obligations of the parties to the arrangement. In joint operations, the parties have rights to the assets and obligations for the liabilities relating to the arrangement, whereas in joint ventures, the parties have rights to the net assets of the arrangement. The Group has assessed the nature of its joint arrangements and determined them to be joint ventures.
Investments in joint ventures are accounted for using the equity method of accounting except when classified as held for sale. The Group\u2019s share of associates\u2019 and joint ventures\u2019 Net income is based on their most recent audited financial statements or unaudited interim statements drawn up to the Group\u2019s balance sheet date. Accounting policies of the joint ventures are modified where necessary to ensure consistency with the policies adopted by the Group.
The total carrying values of investments in joint ventures represent the cost of each investment including the carrying value of goodwill, the share of post-acquisition retained earnings, any other movements in reserves and any long-term debt interests which in substance form part of the Group\u2019s net investment, less any cumulative impairments. The carrying values of associates and joint ventures are reviewed on a regular basis and if there is objective evidence that an impairment in value has occurred as a result of one or more events during the period, the investment is impaired. Investments which have been previously impaired are regularly reviewed for indicators of impairment reversal.
The Group\u2019s share of an associate\u2019s or joint venture\u2019s losses in excess of its interest in that associate or joint venture is not recognised unless the Group has an obligation to fund such losses. Unrealised gains arising from transactions with associates and joint ventures are eliminated against the investment to the extent of the Group\u2019s interest in the investee. Unrealised losses are eliminated in the same way, but only to the extent that there is no evidence of impairment.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociatesAndJointVenturesExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_eb430835-9586-43bd-8bba-b75f010f02ac": { "value": "Associates are investments over which the Group has significant influence, which is the power to participate in the financial and operating policy decisions of the investee, but without the ability to exercise control or joint control. Typically, the Group owns between 20% and 50% of the voting equity of its associates.
The Group accounts for its investment in associates using the equity method. The Group\u2019s share of profits or losses of associates is recognised in the consolidated statement of income and its share of other comprehensive income (loss) of associates is included in other comprehensive income.
Unrealised gains on transactions between the Group and an associate are eliminated to the extent of the Group\u2019s interest in the associate. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Dilution gains and losses arising from changes in interests in investments in associates are recognised in the consolidated statement of income.
Joint arrangements are arrangements in which the Group shares joint control with one or more parties. Joint control is the contractually agreed sharing of control of an arrangement, and exists only when decisions about the activities that significantly affect the arrangement\u2019s returns require the unanimous consent of the parties sharing control.
Judgement is required in determining this classification through an evaluation of the facts and circumstances arising from each individual arrangement. Joint arrangements are classified as either joint operations or joint ventures based on the rights and obligations of the parties to the arrangement. In joint operations, the parties have rights to the assets and obligations for the liabilities relating to the arrangement, whereas in joint ventures, the parties have rights to the net assets of the arrangement. The Group has assessed the nature of its joint arrangements and determined them to be joint ventures.
Investments in joint ventures are accounted for using the equity method of accounting except when classified as held for sale. The Group\u2019s share of associates\u2019 and joint ventures\u2019 Net income is based on their most recent audited financial statements or unaudited interim statements drawn up to the Group\u2019s balance sheet date. Accounting policies of the joint ventures are modified where necessary to ensure consistency with the policies adopted by the Group.
The total carrying values of investments in joint ventures represent the cost of each investment including the carrying value of goodwill, the share of post-acquisition retained earnings, any other movements in reserves and any long-term debt interests which in substance form part of the Group\u2019s net investment, less any cumulative impairments. The carrying values of associates and joint ventures are reviewed on a regular basis and if there is objective evidence that an impairment in value has occurred as a result of one or more events during the period, the investment is impaired. Investments which have been previously impaired are regularly reviewed for indicators of impairment reversal.
The Group\u2019s share of an associate\u2019s or joint venture\u2019s losses in excess of its interest in that associate or joint venture is not recognised unless the Group has an obligation to fund such losses. Unrealised gains arising from transactions with associates and joint ventures are eliminated against the investment to the extent of the Group\u2019s interest in the investee. Unrealised losses are eliminated in the same way, but only to the extent that there is no evidence of impairment.
Name | Country of incorporation | Activity | Type of equity investment | Carrying value (in EUR million) | % Ownership |
|---|---|---|---|---|---|
LeasePlan Emirates LLC | EMIRATE OF ABU DHABI | Leasing | Joint venture | 18.2 | 49% |
Flottenmanagement\u00a0GmbH | AUSTRIA | Leasing | Joint venture | 5.9 | 49% |
PLease SCS | FRANCE | Leasing | Joint venture | 4.7 | 99% |
\u00a0
PLease is a soci\u00e9t\u00e9 en commandite simple (SCS) under French law, whereby the Group is one of the partners. PLease is governed by a steering committee and a strategic committee whereby the Group can nominate two of the four members of each committee. In the steering committee decisions require a majority of its member votes and in the strategic committee decisions can only be taken unanimously.
In December 2024 the stake of 35% in associate ALD Automotive SA Maroc has been derecognised.
\u00a0
(in EUR million) | 2024 | 2023 | ||||
|---|---|---|---|---|---|---|
Associates | Joint Ventures | Total | Associates | Joint Ventures | Total | |
Balance as at 1\u00a0January | 9.5 | 23.9 | 33.4 | 7.9 | \u2212 | 7.9 |
Share of result for the year | 2.3 | 7.4 | 9.7 | 1.4 | 5.0 | 6.4 |
Dividends paid | (0.5) | (3.3) | (3.8) | (0.0) | (6.3) | (6.3) |
Currency translation differences | 0.3 | 1.1 | 1.4 | 0.2 | (0.1) | 0.1 |
Scope changes | (11.6) | (0.3) | (11.9) | \u2212 | 25.4 | 25.4 |
Balance as at 31\u00a0December | \u2212 | 28.8 | 28.8 | 9.5 | 23.9 | 33.4 |
\u00a0
The summarised statement of comprehensive income below does not represent the proportionate share of entity, but the actual amount included in the separate financial statements of the material interests in investments accounted for using the equity method.
\u00a0
(in EUR million) | 2024 | 2023 | ||
|---|---|---|---|---|
Joint | Associates | Joint | Total | |
Income Statement | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Revenues | 186.3 | 63.3 | 172.0 | 235.3 |
Direct costs | (157.3) | (53.6) | (145.0) | (198.6) |
Gross operating income | 29.0 | 9.7 | 27.0 | 36.7 |
Total operating costs | (9.7) | (4.6) | (15.0) | (19.6) |
Other income/costs | \u2212 | (0.6) | \u2013 | (0.6) |
Income tax | (3.2) | (0.5) | (1.0) | (1.5) |
Profit for the period | 16.1 | 4.0 | 11.0 | 15.0 |
Total comprehensive income at 100% | 16.1 | 4.0 | 11.0 | 15.0 |
Group share of profit for the year | 9.7 | 1.4 | 5.0 | 6.4 |
\u00a0
The summarised financial information below does not represent the proportionate share of the entity, but the actual amount included in the separate financial statements of the material interests in investments accounted for using the equity method.
(in EUR million) | 2024 | 2023 | ||
|---|---|---|---|---|
Joint | Associates | Joint | Total | |
Balance Sheet | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Current assets | 40.9 | 26.0 | 28.0 | 54.0 |
Non-current assets | 350.5 | 149.1 | 397.1 | 546.2 |
Current liabilities | (121.1) | (61.1) | (112.3) | (173.4) |
Non-current liabilities | (223.6) | (86.8) | (245.6) | (332.4) |
Equity/Net assets at 100% | 46.7 | 27.2 | 67.2 | 94.4 |
Group Carrying value | 28.8 | 9.5 | 23.9 | 33.4 |
\u00a0
The loans to investments accounted for using the equity method are accounted for at amortised cost (less impairment):
(in EUR million) | 2024 | \u00a0 | 2023 | |||
|---|---|---|---|---|---|---|
Associates | Joint Ventures | Total | Associates | Joint Ventures | Total | |
Loan to associates and joint ventures | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Balance as at 1\u00a0January | 2.0 | 39.5 | 41.5 | \u2212 | \u2212 | \u2212 |
Addition | \u2212 | \u2212 | \u2212 | 2.0 | \u2212 | 2.0 |
Repayment | (2.0) | (39.5) | (41.5) | \u2212 | (39.0) | (39.0) |
Scope changes | \u2212 | \u2212 | \u2212 | \u2212 | 78.5 | 78.5 |
Balance as at 31\u00a0December | \u2212 | \u2212 | \u2212 | 2.0 | 39.5 | 41.5 |
\u00a0
The credit facilities of EUR\u00a041.5\u00a0million advanced as of 31\u00a0December 2023 to investments accounted for using the equity have been fully repaid.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInvestmentsAccountedForUsingEquityMethodExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_6e94f0f4-4f10-4b11-9d84-ab4b37e0b95e": { "value": "Associates are investments over which the Group has significant influence, which is the power to participate in the financial and operating policy decisions of the investee, but without the ability to exercise control or joint control. Typically, the Group owns between 20% and 50% of the voting equity of its associates.
The Group accounts for its investment in associates using the equity method. The Group\u2019s share of profits or losses of associates is recognised in the consolidated statement of income and its share of other comprehensive income (loss) of associates is included in other comprehensive income.
Unrealised gains on transactions between the Group and an associate are eliminated to the extent of the Group\u2019s interest in the associate. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Dilution gains and losses arising from changes in interests in investments in associates are recognised in the consolidated statement of income.
Name | Country of incorporation | Activity | Type of equity investment | Carrying value (in EUR million) | % Ownership |
|---|---|---|---|---|---|
LeasePlan Emirates LLC | EMIRATE OF ABU DHABI | Leasing | Joint venture | 18.2 | 49% |
Flottenmanagement\u00a0GmbH | AUSTRIA | Leasing | Joint venture | 5.9 | 49% |
PLease SCS | FRANCE | Leasing | Joint venture | 4.7 | 99% |
\u00a0
PLease is a soci\u00e9t\u00e9 en commandite simple (SCS) under French law, whereby the Group is one of the partners. PLease is governed by a steering committee and a strategic committee whereby the Group can nominate two of the four members of each committee. In the steering committee decisions require a majority of its member votes and in the strategic committee decisions can only be taken unanimously.
In December 2024 the stake of 35% in associate ALD Automotive SA Maroc has been derecognised.
\u00a0
(in EUR million) | 2024 | 2023 | ||||
|---|---|---|---|---|---|---|
Associates | Joint Ventures | Total | Associates | Joint Ventures | Total | |
Balance as at 1\u00a0January | 9.5 | 23.9 | 33.4 | 7.9 | \u2212 | 7.9 |
Share of result for the year | 2.3 | 7.4 | 9.7 | 1.4 | 5.0 | 6.4 |
Dividends paid | (0.5) | (3.3) | (3.8) | (0.0) | (6.3) | (6.3) |
Currency translation differences | 0.3 | 1.1 | 1.4 | 0.2 | (0.1) | 0.1 |
Scope changes | (11.6) | (0.3) | (11.9) | \u2212 | 25.4 | 25.4 |
Balance as at 31\u00a0December | \u2212 | 28.8 | 28.8 | 9.5 | 23.9 | 33.4 |
\u00a0
The summarised statement of comprehensive income below does not represent the proportionate share of entity, but the actual amount included in the separate financial statements of the material interests in investments accounted for using the equity method.
\u00a0
(in EUR million) | 2024 | 2023 | ||
|---|---|---|---|---|
Joint | Associates | Joint | Total | |
Income Statement | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Revenues | 186.3 | 63.3 | 172.0 | 235.3 |
Direct costs | (157.3) | (53.6) | (145.0) | (198.6) |
Gross operating income | 29.0 | 9.7 | 27.0 | 36.7 |
Total operating costs | (9.7) | (4.6) | (15.0) | (19.6) |
Other income/costs | \u2212 | (0.6) | \u2013 | (0.6) |
Income tax | (3.2) | (0.5) | (1.0) | (1.5) |
Profit for the period | 16.1 | 4.0 | 11.0 | 15.0 |
Total comprehensive income at 100% | 16.1 | 4.0 | 11.0 | 15.0 |
Group share of profit for the year | 9.7 | 1.4 | 5.0 | 6.4 |
\u00a0
The summarised financial information below does not represent the proportionate share of the entity, but the actual amount included in the separate financial statements of the material interests in investments accounted for using the equity method.
(in EUR million) | 2024 | 2023 | ||
|---|---|---|---|---|
Joint | Associates | Joint | Total | |
Balance Sheet | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Current assets | 40.9 | 26.0 | 28.0 | 54.0 |
Non-current assets | 350.5 | 149.1 | 397.1 | 546.2 |
Current liabilities | (121.1) | (61.1) | (112.3) | (173.4) |
Non-current liabilities | (223.6) | (86.8) | (245.6) | (332.4) |
Equity/Net assets at 100% | 46.7 | 27.2 | 67.2 | 94.4 |
Group Carrying value | 28.8 | 9.5 | 23.9 | 33.4 |
\u00a0
The loans to investments accounted for using the equity method are accounted for at amortised cost (less impairment):
(in EUR million) | 2024 | \u00a0 | 2023 | |||
|---|---|---|---|---|---|---|
Associates | Joint Ventures | Total | Associates | Joint Ventures | Total | |
Loan to associates and joint ventures | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Balance as at 1\u00a0January | 2.0 | 39.5 | 41.5 | \u2212 | \u2212 | \u2212 |
Addition | \u2212 | \u2212 | \u2212 | 2.0 | \u2212 | 2.0 |
Repayment | (2.0) | (39.5) | (41.5) | \u2212 | (39.0) | (39.0) |
Scope changes | \u2212 | \u2212 | \u2212 | \u2212 | 78.5 | 78.5 |
Balance as at 31\u00a0December | \u2212 | \u2212 | \u2212 | 2.0 | 39.5 | 41.5 |
\u00a0
The credit facilities of EUR\u00a041.5\u00a0million advanced as of 31\u00a0December 2023 to investments accounted for using the equity have been fully repaid.
", "dimensions": { "concept": "ifrs-full:DisclosureOfSignificantInvestmentsInAssociatesExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_da09514a-d2a1-415d-ba04-8f81809460c2": { "value": "Associates are investments over which the Group has significant influence, which is the power to participate in the financial and operating policy decisions of the investee, but without the ability to exercise control or joint control. Typically, the Group owns between 20% and 50% of the voting equity of its associates.
The Group accounts for its investment in associates using the equity method. The Group\u2019s share of profits or losses of associates is recognised in the consolidated statement of income and its share of other comprehensive income (loss) of associates is included in other comprehensive income.
Unrealised gains on transactions between the Group and an associate are eliminated to the extent of the Group\u2019s interest in the associate. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Dilution gains and losses arising from changes in interests in investments in associates are recognised in the consolidated statement of income.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociates", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_ac0b9c25-2282-4adb-84ec-7b571306a64c": { "value": "Joint arrangements are arrangements in which the Group shares joint control with one or more parties. Joint control is the contractually agreed sharing of control of an arrangement, and exists only when decisions about the activities that significantly affect the arrangement\u2019s returns require the unanimous consent of the parties sharing control.
Judgement is required in determining this classification through an evaluation of the facts and circumstances arising from each individual arrangement. Joint arrangements are classified as either joint operations or joint ventures based on the rights and obligations of the parties to the arrangement. In joint operations, the parties have rights to the assets and obligations for the liabilities relating to the arrangement, whereas in joint ventures, the parties have rights to the net assets of the arrangement. The Group has assessed the nature of its joint arrangements and determined them to be joint ventures.
Investments in joint ventures are accounted for using the equity method of accounting except when classified as held for sale. The Group\u2019s share of associates\u2019 and joint ventures\u2019 Net income is based on their most recent audited financial statements or unaudited interim statements drawn up to the Group\u2019s balance sheet date. Accounting policies of the joint ventures are modified where necessary to ensure consistency with the policies adopted by the Group.
The total carrying values of investments in joint ventures represent the cost of each investment including the carrying value of goodwill, the share of post-acquisition retained earnings, any other movements in reserves and any long-term debt interests which in substance form part of the Group\u2019s net investment, less any cumulative impairments. The carrying values of associates and joint ventures are reviewed on a regular basis and if there is objective evidence that an impairment in value has occurred as a result of one or more events during the period, the investment is impaired. Investments which have been previously impaired are regularly reviewed for indicators of impairment reversal.
The Group\u2019s share of an associate\u2019s or joint venture\u2019s losses in excess of its interest in that associate or joint venture is not recognised unless the Group has an obligation to fund such losses. Unrealised gains arising from transactions with associates and joint ventures are eliminated against the investment to the extent of the Group\u2019s interest in the investee. Unrealised losses are eliminated in the same way, but only to the extent that there is no evidence of impairment.
Name | Country of incorporation | Activity | Type of equity investment | Carrying value (in EUR million) | % Ownership |
|---|---|---|---|---|---|
LeasePlan Emirates LLC | EMIRATE OF ABU DHABI | Leasing | Joint venture | 18.2 | 49% |
Flottenmanagement\u00a0GmbH | AUSTRIA | Leasing | Joint venture | 5.9 | 49% |
PLease SCS | FRANCE | Leasing | Joint venture | 4.7 | 99% |
\u00a0
PLease is a soci\u00e9t\u00e9 en commandite simple (SCS) under French law, whereby the Group is one of the partners. PLease is governed by a steering committee and a strategic committee whereby the Group can nominate two of the four members of each committee. In the steering committee decisions require a majority of its member votes and in the strategic committee decisions can only be taken unanimously.
In December 2024 the stake of 35% in associate ALD Automotive SA Maroc has been derecognised.
\u00a0
(in EUR million) | 2024 | 2023 | ||||
|---|---|---|---|---|---|---|
Associates | Joint Ventures | Total | Associates | Joint Ventures | Total | |
Balance as at 1\u00a0January | 9.5 | 23.9 | 33.4 | 7.9 | \u2212 | 7.9 |
Share of result for the year | 2.3 | 7.4 | 9.7 | 1.4 | 5.0 | 6.4 |
Dividends paid | (0.5) | (3.3) | (3.8) | (0.0) | (6.3) | (6.3) |
Currency translation differences | 0.3 | 1.1 | 1.4 | 0.2 | (0.1) | 0.1 |
Scope changes | (11.6) | (0.3) | (11.9) | \u2212 | 25.4 | 25.4 |
Balance as at 31\u00a0December | \u2212 | 28.8 | 28.8 | 9.5 | 23.9 | 33.4 |
\u00a0
The summarised statement of comprehensive income below does not represent the proportionate share of entity, but the actual amount included in the separate financial statements of the material interests in investments accounted for using the equity method.
\u00a0
(in EUR million) | 2024 | 2023 | ||
|---|---|---|---|---|
Joint | Associates | Joint | Total | |
Income Statement | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Revenues | 186.3 | 63.3 | 172.0 | 235.3 |
Direct costs | (157.3) | (53.6) | (145.0) | (198.6) |
Gross operating income | 29.0 | 9.7 | 27.0 | 36.7 |
Total operating costs | (9.7) | (4.6) | (15.0) | (19.6) |
Other income/costs | \u2212 | (0.6) | \u2013 | (0.6) |
Income tax | (3.2) | (0.5) | (1.0) | (1.5) |
Profit for the period | 16.1 | 4.0 | 11.0 | 15.0 |
Total comprehensive income at 100% | 16.1 | 4.0 | 11.0 | 15.0 |
Group share of profit for the year | 9.7 | 1.4 | 5.0 | 6.4 |
\u00a0
The summarised financial information below does not represent the proportionate share of the entity, but the actual amount included in the separate financial statements of the material interests in investments accounted for using the equity method.
(in EUR million) | 2024 | 2023 | ||
|---|---|---|---|---|
Joint | Associates | Joint | Total | |
Balance Sheet | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Current assets | 40.9 | 26.0 | 28.0 | 54.0 |
Non-current assets | 350.5 | 149.1 | 397.1 | 546.2 |
Current liabilities | (121.1) | (61.1) | (112.3) | (173.4) |
Non-current liabilities | (223.6) | (86.8) | (245.6) | (332.4) |
Equity/Net assets at 100% | 46.7 | 27.2 | 67.2 | 94.4 |
Group Carrying value | 28.8 | 9.5 | 23.9 | 33.4 |
\u00a0
The loans to investments accounted for using the equity method are accounted for at amortised cost (less impairment):
(in EUR million) | 2024 | \u00a0 | 2023 | |||
|---|---|---|---|---|---|---|
Associates | Joint Ventures | Total | Associates | Joint Ventures | Total | |
Loan to associates and joint ventures | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Balance as at 1\u00a0January | 2.0 | 39.5 | 41.5 | \u2212 | \u2212 | \u2212 |
Addition | \u2212 | \u2212 | \u2212 | 2.0 | \u2212 | 2.0 |
Repayment | (2.0) | (39.5) | (41.5) | \u2212 | (39.0) | (39.0) |
Scope changes | \u2212 | \u2212 | \u2212 | \u2212 | 78.5 | 78.5 |
Balance as at 31\u00a0December | \u2212 | \u2212 | \u2212 | 2.0 | 39.5 | 41.5 |
\u00a0
The credit facilities of EUR\u00a041.5\u00a0million advanced as of 31\u00a0December 2023 to investments accounted for using the equity have been fully repaid.
", "dimensions": { "concept": "ifrs-full:DisclosureOfJointVenturesExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_2b54bd73-7083-41b4-b68c-44247f9dfa3c": { "value": "Joint arrangements are arrangements in which the Group shares joint control with one or more parties. Joint control is the contractually agreed sharing of control of an arrangement, and exists only when decisions about the activities that significantly affect the arrangement\u2019s returns require the unanimous consent of the parties sharing control.
Judgement is required in determining this classification through an evaluation of the facts and circumstances arising from each individual arrangement. Joint arrangements are classified as either joint operations or joint ventures based on the rights and obligations of the parties to the arrangement. In joint operations, the parties have rights to the assets and obligations for the liabilities relating to the arrangement, whereas in joint ventures, the parties have rights to the net assets of the arrangement. The Group has assessed the nature of its joint arrangements and determined them to be joint ventures.
Investments in joint ventures are accounted for using the equity method of accounting except when classified as held for sale. The Group\u2019s share of associates\u2019 and joint ventures\u2019 Net income is based on their most recent audited financial statements or unaudited interim statements drawn up to the Group\u2019s balance sheet date. Accounting policies of the joint ventures are modified where necessary to ensure consistency with the policies adopted by the Group.
The total carrying values of investments in joint ventures represent the cost of each investment including the carrying value of goodwill, the share of post-acquisition retained earnings, any other movements in reserves and any long-term debt interests which in substance form part of the Group\u2019s net investment, less any cumulative impairments. The carrying values of associates and joint ventures are reviewed on a regular basis and if there is objective evidence that an impairment in value has occurred as a result of one or more events during the period, the investment is impaired. Investments which have been previously impaired are regularly reviewed for indicators of impairment reversal.
The Group\u2019s share of an associate\u2019s or joint venture\u2019s losses in excess of its interest in that associate or joint venture is not recognised unless the Group has an obligation to fund such losses. Unrealised gains arising from transactions with associates and joint ventures are eliminated against the investment to the extent of the Group\u2019s interest in the investee. Unrealised losses are eliminated in the same way, but only to the extent that there is no evidence of impairment.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentsInJointVentures", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_2c3371bb-18a7-4336-9243-fdc5b82b811c": { "value": "Items included in the financial statements of each of the Group\u2019s entities are measured using the currency of the primary economic environment in which the entity operates (\u201cthe functional currency\u201d). The consolidated financial statements are presented in millions of euros, which is the Group\u2019s presentation currency and it has been rounded to the nearest million, unless otherwise indicated. In certain cases, rounding may cause non-material discrepancies in the lines and columns showing totals.
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement, except when deferred in other comprehensive income as qualifying cash flow hedges and qualifying net investment hedges. Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the income statement within \u201cInterest income or charges\u201d. All other foreign exchange gains and losses are presented in the income statement also within \u201cLeasing margin\u201d.
\u00a0
The results and financial position of all the Group entities (apart from those that operate in a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:
Exchange differences on foreign currency balances with foreign operations for which settlement is neither planned nor likely to occur in the foreseeable future, and therefore form part of the Group\u2019s net investment in these foreign operations, are offset in the cumulative translation adjustment reserve. Cumulative translation differences are recycled from equity and recognised as income or expense on disposal of the operation to which they relate.
Fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate. Exchange differences arising are recognised in comprehensive income.
The accounts of the subsidiary in Turkey, which operates in a hyperinflationary economy, have been translated wholly at the closing rate, as per the requirements of IAS\u00a029.
\u00a0
The main exchange rates used in the consolidated financial statements for the years ended 31\u00a0December 2024 and 31\u00a0December 2023 are based on Paris stock exchange rates and are as follows:
\u00a0 | 31\u00a0December 2024 | 31\u00a0December 2023 | ||
|---|---|---|---|---|
Period-end Rate | Average Rate | Period-end Rate | Average Rate | |
EUR/UK Pound | 0.8292 | 0.8466 | 0.8691 | 0.8699 |
EUR/Turkish Lira | 36.7372 | 35.5649 | 32.6531 | 32.6531 |
EUR/Brazilian Real | 6.4253 | 5.8268 | 5.3618 | 5.4016 |
EUR/Czech Koruna | 25.1850 | 25.1194 | 24.7240 | 24.0006 |
EUR/Swedish Krona | 11.4590 | 11.4307 | 11.0960 | 11.4728 |
EUR/Norwegian Krone | 11.7950 | 11.6268 | 11.2405 | 11.4243 |
EUR/Danish Krone | 7.4578 | 7.4589 | 7.4529 | 7.4510 |
Items included in the financial statements of each of the Group\u2019s entities are measured using the currency of the primary economic environment in which the entity operates (\u201cthe functional currency\u201d). The consolidated financial statements are presented in millions of euros, which is the Group\u2019s presentation currency and it has been rounded to the nearest million, unless otherwise indicated. In certain cases, rounding may cause non-material discrepancies in the lines and columns showing totals.
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement, except when deferred in other comprehensive income as qualifying cash flow hedges and qualifying net investment hedges. Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the income statement within \u201cInterest income or charges\u201d. All other foreign exchange gains and losses are presented in the income statement also within \u201cLeasing margin\u201d.
\u00a0
The results and financial position of all the Group entities (apart from those that operate in a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:
Exchange differences on foreign currency balances with foreign operations for which settlement is neither planned nor likely to occur in the foreseeable future, and therefore form part of the Group\u2019s net investment in these foreign operations, are offset in the cumulative translation adjustment reserve. Cumulative translation differences are recycled from equity and recognised as income or expense on disposal of the operation to which they relate.
Fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate. Exchange differences arising are recognised in comprehensive income.
The accounts of the subsidiary in Turkey, which operates in a hyperinflationary economy, have been translated wholly at the closing rate, as per the requirements of IAS\u00a029.
\u00a0
The main exchange rates used in the consolidated financial statements for the years ended 31\u00a0December 2024 and 31\u00a0December 2023 are based on Paris stock exchange rates and are as follows:
\u00a0 | 31\u00a0December 2024 | 31\u00a0December 2023 | ||
|---|---|---|---|---|
Period-end Rate | Average Rate | Period-end Rate | Average Rate | |
EUR/UK Pound | 0.8292 | 0.8466 | 0.8691 | 0.8699 |
EUR/Turkish Lira | 36.7372 | 35.5649 | 32.6531 | 32.6531 |
EUR/Brazilian Real | 6.4253 | 5.8268 | 5.3618 | 5.4016 |
EUR/Czech Koruna | 25.1850 | 25.1194 | 24.7240 | 24.0006 |
EUR/Swedish Krona | 11.4590 | 11.4307 | 11.0960 | 11.4728 |
EUR/Norwegian Krone | 11.7950 | 11.6268 | 11.2405 | 11.4243 |
EUR/Danish Krone | 7.4578 | 7.4589 | 7.4529 | 7.4510 |
Items included in the financial statements of each of the Group\u2019s entities are measured using the currency of the primary economic environment in which the entity operates (\u201cthe functional currency\u201d). The consolidated financial statements are presented in millions of euros, which is the Group\u2019s presentation currency and it has been rounded to the nearest million, unless otherwise indicated. In certain cases, rounding may cause non-material discrepancies in the lines and columns showing totals.
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement, except when deferred in other comprehensive income as qualifying cash flow hedges and qualifying net investment hedges. Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the income statement within \u201cInterest income or charges\u201d. All other foreign exchange gains and losses are presented in the income statement also within \u201cLeasing margin\u201d.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFunctionalCurrencyExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_e75550ed-772e-4299-9900-8a75fe240f5d": { "value": "Ordinary shares are classified as equity. Dividends are recognised as a liability in the balance sheet after approval of the profit distribution by the shareholders.
The proceeds of the issue of AT1 capital securities are available to the Group in perpetuity and are undated, deeply subordinated, resettable and callable. As the payment of distributions is wholly discretionary, the proceeds received and interest coupon paid on these securities are recognised in equity. As there is no formal obligation to reimburse the principal amount or to pay interest, the capital securities are recognised as equity and the distributions paid on these instruments, as well as the transaction costs related to the issuance of the capital securities, are recognised directly in equity.
\u00a0
A dividend related to the period ended 31\u00a0December 2023 for an amount of EUR\u00a0383.5\u00a0million (EUR\u00a00.5\u00a0per share) was paid to Ayvens shareholders on 4\u00a0June 2024 of which the dividend paid to Societe Generale was EUR\u00a0201.9\u00a0million (2023: a dividend relating to 31\u00a0December 2022 of EUR\u00a0598.9\u00a0million (EUR\u00a01.1\u00a0per share) was paid to Ayvens shareholders on 2\u00a0June 2023 of which the dividend paid to Societe Generale was EUR\u00a0456.9\u00a0million). A dividend related to the period ended 31\u00a0December 2024 for an amount of EUR\u00a073.1\u00a0million was paid to AT1 capital holders (see Note\u00a027 for further details).
", "dimensions": { "concept": "ifrs-full:DisclosureOfDividendsExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_edc39953-2137-4408-8af3-fbae12c47037": { "value": "Ordinary shares are classified as equity. Dividends are recognised as a liability in the balance sheet after approval of the profit distribution by the shareholders.
The proceeds of the issue of AT1 capital securities are available to the Group in perpetuity and are undated, deeply subordinated, resettable and callable. As the payment of distributions is wholly discretionary, the proceeds received and interest coupon paid on these securities are recognised in equity. As there is no formal obligation to reimburse the principal amount or to pay interest, the capital securities are recognised as equity and the distributions paid on these instruments, as well as the transaction costs related to the issuance of the capital securities, are recognised directly in equity.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDividendsExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_36c6b3c0-2dd0-4215-b70c-51cd945a6306": { "value": "As a lessor the Group is required to determine at the inception of each lease contract whether the lease arrangement is an operating lease or finance lease. This assessment considers the substance of the transaction rather than the form of the contract and classification is based on the extent to which the lease transfers the risks and rewards incidental to ownership of the underlying asset. A lease is classified as a finance lease if it transfers substantially all the risks and rewards from ownership of an asset. Conversely, an operating lease is a lease that does not transfer substantially all the risks and rewards from the ownership of an asset.
Various criteria are used to determine the lease classification of which the three most important are:
The Group as a lessor presents the assets subject to operating leases under \u201cRental fleet\u201d in the balance sheet and mainly includes vehicles under operating leases, vehicles under short term rental contracts (less than 1\u00a0year) and available for rental vehicles.
The Group leases assets to its customers for durations that normally range between three to five years. In almost all cases, the leased assets are returned to the Group at the end of the contract term. In case of early termination in most of the cases there will be a settlement invoice considering amendments. Under the operating lease classification, the customers are offered various products that have different contractual terms, but where ultimately the risks and rewards incidental to ownership are retained by the Group. A customer may be entitled to receive a portion of the net positive result from factors that have resulted in the vehicle being above its expected residual value and/or better RMT results at the end of the lease. However, any negative result risk will still be borne by the Group.
Monthly fixed operating lease fees charged to the customer for the use of the vehicle over the duration of the contract period can comprise various components each having its own revenue recognition. Any unpaid lessee receivables are recorded in the balance sheet as \u201cLease receivables from customers\u201d. See the Revenue recognition policy in Note\u00a03.4.20 for more details.
Assets under Operating lease and Rental fleet are measured at cost less accumulated depreciation and impairment losses. The cost of the operating lease cars comprises their purchase price and any incremental and directly attributable costs of bringing the assets held for use in operating leases to working condition for its intended use (e.g. smart phone integration, anti-theft devices, etc.). Import duties and non-refundable purchase taxes are included in the purchase price and any trade discounts are deducted when calculating the purchase price. Incremental direct costs may include commissions, legal fees and delivery cost where material. Furthermore, lease incentives and volume bonuses are also taken into account and depreciated over the expected lease term. The carrying amount of the Operating lease portfolio is presented in the category \u201cRental fleet\u201d on the balance sheet.
The operating lease and other leased car assets are depreciated on a straight-line basis over the estimated useful life (normally the contract period for operating leases) to their estimated residual value. The residual value and the useful life of the leased assets are reviewed at least at each financial year-end and, if expectations differ from previous estimates, the changes are accounted for prospectively as a change in accounting estimate (so-called prospective depreciation). Depreciation is recognised in the income statement as part of the \u201cLease margin\u201d or \u201cUsed car sales\u201d result for depreciation adjustments in relation to any prospective depreciation adjustments.
Depreciation is not applied to new vehicles available for lease when these vehicles are not in the condition to be leased to customers. This often applies to vehicles bought for signed lease contracts or vehicles bought with the intention to lease that are temporary stored and not ready to be used.
For the impairment accounting policy refer to Note\u00a04.3 Impairment of rental fleet. Upon termination of the lease or rental contract the relevant assets are reclassified to the caption \u201cInventories\u201d at their carrying amount if the intention is to sell the used car or remain within \u201cRental fleet\u201d if the intention is to lease the vehicle for another term.
Finance leases are recognised in the balance sheet at an amount equal to the present value of the minimum lease payments and the unguaranteed residual value, after deduction of provisions deemed necessary in respect of bad and doubtful debts and any accumulated impairment losses. Initial direct costs and down-payments that are not refundable security deposits are included in the initial measurement of the finance lease receivables. The assets are presented within the category \u201cLease receivables from customers\u201d on the balance sheet (See Note\u00a022 for further details).
The finance lease instalments can comprise various components each having its own revenue recognition. Both invoiced but unpaid amounts and unearned amounts for finance leases are recorded in the balance sheet line as \u201cLease receivables from customers\u201d. See the Revenue recognition policy in note\u00a03.4.20 for more details.
These services include arranging for vehicle delivery and administration of the title and registration process, as well as tax and insurance requirements, ensuring maintenance of the vehicle, pursuing warranty claims, providing fleet policy analysis and recommendations, benchmarking, and providing vehicle recommendations. Vehicles classified under this category are featured within the Off-Balance Sheet fleet and their related revenue is recognised within the Services revenue line.
The lease period to be applied in determining the rental payments to be discounted will match the non- cancellable period of the lease adjusted for:
The measurement of the reasonable certainty of exercising or not exercising the extension or early termination options takes into account all the facts and circumstances that may create an economic incentive to exercise or not to exercise these options.
The Group recognises right-of-use assets at the commencement date of the lease (i.e. the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of the corresponding lease liability recognised, adjusted for any lease payments made at or before the lease commencement date, plus any initial direct costs incurred and an estimate of costs for dismantling, removing, or restoring the underlying asset and less any lease incentives received.
The right-of-use assets are depreciated over the lease term, defined as the non-cancellable period for which the lessee has the right to use an underlying asset including optional periods when an entity is reasonably certain to exercise an option to extend (or not to terminate) a lease. Depreciation expense is recorded in Depreciation and amortisation in the income statement.
At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of the expected future lease payments, calculated using the Group\u2019s incremental borrowing rate, adjusted to reflect the length of the lease and country of location.
Lease payments included in the lease liability consist of each of the following:
Variable leasing costs (other than those referred to above and including those linked to usage) and the costs of non-lease components are not included in the lease liability and are charged to Leasing costs as incurred.
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change to the forecast lease payments or change in lease term. When the lease liability is remeasured, an adjustment is made to the corresponding right-of-use asset.
Leases with a term of less than or equal to 12\u00a0months or those with asset value of less than Euro 5,000 are not recognised in the balance sheet. The Group recognises payments for these leases as an expense on a straight-line basis over the lease term within \u201cGeneral and administrative expenses\u201d.
Deferred tax will be recorded based on the amount of taxable and deductible temporary differences. Generally, on the date of the initial recording of the right-of-use and the lease liability, no deferred tax is recorded as the asset value is equal to the liability value. The net temporary differences that may result from subsequent changes in the right-to-use and lease liability will result in the recognition of deferred tax.
Further details are provided in Note\u00a015 Right-of-use assets and lease liabilities.
This caption includes:
The receivables are shown after any accumulated impairment losses and are initially measured at fair value and subsequently at amortised cost using the effective interest method. Unearned finance income is the difference between the gross investment in the lease (undiscounted future minimum lease payments and unguaranteed residual value accruing to the Group) and the net investment in the lease.
An expected credit loss (ECL) provision is applied to all receivables from customers that are measured at amortised cost with the exception of those receivables deemed to be out of scope. The Group have applied this scope exemption when the receivable meets the low credit risk exemption criteria. The Group has applied this to receivables on used car sales and insurance receivables, where there is zero or almost no history of credit risk or the amounts due are from financial institutions with an investment grade credit rating.
For the other receivables from customers former LeasePlan entities have aligned with existing ALD policies as of May\u00a02024. Overall, the Group segments the receivables from customers into sound and doubtful receivables that includes receivables that have met the definition of default. For sound receivables the Group applies a simplified approach in calculating ECLs from initial recognition of the receivable, which means the Group does not track changes in significant increase in credit risk but instead recognises a loss allowance based on lifetime ECLs at each reporting date.
The Group has established a provision matrix for the sound receivables that is based on its historical credit loss experience by ageing categories, adjusted for forward-looking factors specific to the debtors and the economic environment when the impact of those factors is material to the financial statements. To establish the forward-looking element of IFRS\u00a09 provision, the Group uses macroeconomic data and analysis through local uplifts to probability of default and loss given default rates.
Since obtaining the financial holding status, the Group has aligned its definition of default to the ECB Regulatory Capital CRR Article\u00a0178 definition of default in 2023. This change applies to historic ALD entities only as LeasePlan entities were already aligned with the Article\u00a0178 definition of default due to holding a banking licence prior to the acquisition. For purposes of assessing, recognising and reporting defaults, a customer shall be considered to be in default when either one or both of the following events occur:
The application of the above guidance is only to the extent of identifying the customers that are in default. There is no change in the method of determining the value of impairment. Where the customer is in default, the whole of the customer balance is classified as doubtful, and impairment is based upon the full outstanding amount, except where we have adjudged there are mitigating circumstances.\u00a0
Alignment of LeasePlan entities with the Ayvens methodology increased the IFRS 9 provisions by EUR\u00a017.5\u00a0million as part of the purchase price allocation. Main driver of that increase is the provisioning of 100% for receivables from customers past due more than 90 consecutive days on any material credit obligation. The subsequent increase (EUR\u00a05.9\u00a0million) was accounted for as cost of risk in Q1 2024.
Expected credit losses are reassessed at each reporting date and reflect all reasonable information that is available at the reporting date. Judgement is required from management for applying appropriate models and setting assumptions for the measurement of ECL. The methodology, assumptions and data, including any forecasts of future economic conditions, macroeconomic impacts and the Group\u2019s provision matrix are reviewed regularly by management in determining the expected credit losses and the write-off of receivables. Doubtful debts should be written off as soon as the definitive loss is known.
Where the Group have acquired credit-impaired receivables from customers as part of a business combination, the gross receivable is initial recognised at fair value with no carrying impairment allowance. The Group only recognises the cumulative changes in lifetime expected credit losses since initial recognition as a loss allowance for originated purchased credit-impaired financial assets in the income statement.
Disputes often arise in the collection of lease receivables and tend to range from issues relating to the performance of various services under the contract to the amount of end-of-contract billing. A dispute has no impact on the solvency of the customer or the risk of default, and therefore is not a credit loss. As such these amounts are removed from sound receivables and a provision is applied based on our provisions accounting policy. For presentation purposes the provision is netted against the \u201cReceivables from customers\u201d balance sheet line item.
Details about the assumptions and estimation techniques used in measuring ECL for finance lease receivables and trade receivables from operating lease contracts are provided in the section Credit risk management and disclosure on the impairment provided in Note\u00a022 Lease receivables from customers.
Revenues represent the fair value of the consideration received or receivable for the sale of goods and services in the Group\u2019s ordinary course of business.
Contracts relating to vehicle leasing and service products can take the form of operating leases, finance leases and service agreements. To determine whether a contract includes an agreement for a period of time, the Group has assessed whether, throughout the period of use, the customer has both of the following:
If a contract relating to an asset fails to give the customer both of the above rights, the Group accounts for the agreement as a revenue contract. In situations where management services unrelated to an asset contract are provided, the Group accounts for the contract as a service contract.
In most situations, lease and service contracts are entered into at the same time or as a single contract with our customers. Where the customer is charged a monthly fee that both relates to the rental price of the vehicle (including depreciation and interest) and various other products and services that the customer can subscribe to, the standalone tariffed elements will be recognised as separate performance obligations if the good or service is distinct by meeting both the following criteria:
Activities or costs that transfer a good or service to the lessee are identified as non-lease components. Amounts payable for activities and costs that do not transfer a good or service are part of the total consideration and are allocated to the lease and non-lease components identified in the contract.
The lease classification, that is determined on a contract-by-contract basis, will determine if revenue recognition is on an operating lease or finance lease basis.
On operating leases, lease rental revenue (depreciation and interest) is recognised in accordance with IFRS\u00a016 on a straight-line basis over the lease term based on the total of the contractual payments divided by the number of months of the lease term.
Charges to customers may include passed on costs such as fuel, road taxes and other taxes which do not represent the inflow of economic benefits and/or are collected on behalf of third parties and are therefore not presented as revenues.
Upfront payments from customers at the beginning of the lease agreement are recognised in the balance sheet and amortised on a straight-line basis over the period of the lease agreement. Amounts paid or value provided to lessees as lease incentives are capitalised (e.g., upfront cash payments to the lessee, reimbursement or absorption of costs by the lessor or free or reduced rents given at the beginning of the lease term). Lease incentives are accounted for on a straight-line basis over the term of the related lease as a reduction in revenue.
Where a customer retains the car for a period beyond the normal return date (informal extension), the rent continues to be charged to the customer and the related contractual depreciation will continue to be recognised.
Regarding finance leases, the IFRS\u00a016\u00a0standard is applied, and the earnings are allocated between the capital amount and finance income. The capital amount is used to reduce the receivable balance and the income is recognised in the income statement in each period using the effective interest rate method to give a constant periodic rate of return on the net investment in the lease. The Group uses the net investment method to allocate gross earnings, which excludes the effect of cash flows arising from taxes and financing relating to a lease transaction. In addition:
Upfront payments and initial direct costs are taken into consideration in calculating the implicit interest rate in the lease and recognised evenly over the life of the lease.
If a contract contains a lease component and one or additional lease or non-lease components, then IFRS\u00a016 requires a lessor always to allocate the consideration in a contract following the approach in IFRS\u00a015 Revenue recognition.
The 5\u00a0steps process required by IFRS\u00a015 for non-lease components is summarised as follows:
Revenue from Fleet Management services is recognised on a straight-line basis over the term of the Fleet Management agreement.
Income related to repair, maintenance and tyres (RMT) is recognised over the term of the lease contract. The allocation of income over the term is based on the normal RMT cost profile supported by historical statistics and expected service costs. The difference between the amounts charged to customers and amounts recognised as income is accounted for as deferred leasing income. Cost profiles are reviewed periodically to ensure they remain a fair representation of historical RMT expenditures, adjusted for reasonable expectations of changes in cost profiles. Where an accurate or reliable estimate of the cost curve is not available, revenue is recognised based on an estimate of expected completion of the performance obligation using an alternative input method.
If income related to services surrounding contracts is not certain until final settlement takes place, this income is not recognised until that time and is presented within the sales result. For all other contracts, expected losses are recognised as an expense immediately when it is probable that total contract costs will exceed total contract revenues.
Flex Fleet revenues are recognised on a straight-line basis over the term of the rental agreement.
The revenue from the risk retention schemes is recognised based on the monthly lease instalment. This applies for third-party liability and own damage insurance products. Revenue recognition will cease when the contract is terminated by a customer or at the end of the contractual term.
Where interest on late payment is billed to customers, the related revenue is only recognised when settlements are made by customers.
Revenues also include the proceeds of the sale of vehicles from terminated lease contracts and lease revenues from end of contract billing such as repair costs recharged to the customer. The proceeds from the sale of vehicles are recognised when the vehicles are sold and control of the vehicles is transferred. End of contract fees may consist of fees charged to customers for mileage variation adjustments and excessive wear and tear of the vehicle. Revenues also include charges arising from deviations from the contractual terms, where the fees are recognised upon termination of the lease contract.
Income related to lease services is recognised over the term of the contract based on historical statistics and on assumptions regarding expected service costs. The assumptions may differ from the actual data as a result of changes in economic and market conditions and are periodically back tested and adjusted if considered necessary. For details in relation to the accounting of Note 3.4.20 Revenue recognition.
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Leasing revenue\u00a0\u2013 operating leases | 10,590.1 | 7,795.3 |
Interest income from finance lease | 124.7 | 89.4 |
Other interest income | 302.0 | 148.0 |
Leasing revenues | 11,016.8 | 8,032.6 |
Leasing costs\u00a0\u2013 depreciation | (8,085.7) | (6,171.0) |
Leasing costs\u00a0\u2013 financing: | \u00a0 | \u00a0 |
Interest charges on loans from financial institutions\u00a0(1) | (766.4) | (445.2) |
Interest charges on deposits | (381.1) | (169.0) |
Interest charges on issued bonds | (455.8) | (225.3) |
Other interest charges | (294.3) | (205.2) |
Total interest charges | (1,897.5) | (1,044.7) |
Leasing costs\u00a0\u2013 depreciation and financing | (9,983.2) | (7,215.7) |
Derivatives not in hedges | 45.5 | (152.0) |
Hedge ineffectiveness\u00a0\u2013 fair value hedges | (127.2) | (35.5) |
Hedge ineffectiveness\u00a0\u2013 cash flow hedges | 1.0 | 1.5 |
Unrealised gains/(losses) on derivative financial instruments | (80.6) | (186.0) |
Unrealised foreign exchange gains/(losses) | (3.6) | 4.5 |
Hyperinflation\u00a0\u2013 net monetary gain | 121.4 | 140.1 |
Total unrealised gains/(losses) on financial instruments and other | 37.1 | (41.4) |
Leasing margin | 1,070.7 | 775.5 |
|
\u201cLeasing costs \u2013 depreciation\u201d includes depreciation of vehicles which is calculated based on contractual residual values. Any impacts from the revision of residual values are recorded in the \u201cDepreciation adjustments\u201d in \u201cUsed car sales result and depreciation adjustments\u201d.
\u201cOther interest income\u201d comprises income received from financial instruments, income received for cash deposits with central banks and other third parties.
\u201cOther interest charges\u201d mainly comprise of interest charges incurred from asset-backed borrowings, net interest costs on derivative financial instruments, realised gains or losses on translation of financial liabilities and interest expense on lease liabilities.
Financial statements of the Turkish subsidiaries are based on a historic cost. Non-monetary items in the financial statements have been restated for the change in CPI (Consumer Price Index) from the date of their acquisition or initial recognition to the end of the reporting period.
Net monetary gain is derived as the difference resulting from the restatement of non-monetary assets, incomes and expenses at transaction date and the restatement of all components of equity from the beginning of the period.
Included within the \u201cLeasing costs\u201d, for hyperinflation in Turkey is an impairment of EUR\u00a061.5\u00a0million for year ending 31\u00a0December 2024 (2023: EUR\u00a067.2\u00a0million) relating to recoverability of the fleet assets and additional depreciation on the inflationary increase of EUR\u00a0121.3\u00a0million (2023: EUR\u00a033.7\u00a0million).
Total interest charges have increased significantly in the year ending 31\u00a0December 2024. \u201cInterest charge on loans from financial institutions\u201d has increased with the acquisition of LeasePlan in May\u00a02023, which has external funding arrangements and borrowing from central bank institutions as part of its banking operations. The new charge of \u201cInterest charges on deposits\u201d is also a result of interest paid on fixed term savings deposits, raised by Ayvens Bank in the Netherlands and in Germany. \u201cInterest charges on issued bonds\u201d has increased due to the issuance of new EMTN bonds in the year to finance the operations of the combined group, while the increase in \u201cOther interest charges\u201d are due to the additional asset-backed securitisation funding acquired on acquisition of LeasePlan. For more details of the funding changes from the acquisition of LeasePlan see Note\u00a029 Borrowing from financial institutions, Bonds and Notes issued.
The Group\u2019s activities are principally related to vehicle leasing and Fleet Management. The Group accepts and offers lease contracts to clients at both fixed and floating interest rates, for various periods and in various currencies. For a major part of the funding of the cars, the Group has entered into borrowings from external parties or issued notes to third parties. To mitigate the Group exposure towards future movements in interest rates and currency exchange rates the Group have entered into interest rate swaps and cross currency swap and forward arrangements. While as a result of these arrangements the Group mitigates interest rate risk and currency risk from an economic perspective, these derivatives do not always qualify for hedge accounting from an accounting perspective. The accounting treatment of derivative financial instruments exposes the Group to some volatility in its income statement. For more details see Note\u00a05 Financial Risk Management and Note\u00a019 Derivative financial instruments.
The \u201cHyperinflation \u2013 net monetary gain\u201d in the \u201cUnrealised gains/losses on financial instruments and other\u201d line in the income statement, includes the gain for the consumer price index inflation applied to the book value of the Turkish subsidiaries fleet of vehicles, share capital and retained earnings.
\u00a0
Revenues that are included within the margins analysed in 8a, 8b and 8c are shown in the following table. They are analysed into Revenues derived from the Rental activity and Proceeds of Cars sold at the end of the leasing period.
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Services revenues | 5,451.0 | 4,391.2 |
Proceeds of cars sold | 8,883.3 | 6,458.8 |
Revenues from contracts with customers excluding lease | 14,334.3 | 10,850.0 |
Leasing revenues | 11,016.8 | 8,032.6 |
Total Revenues | 25,351.1 | 18,882.7 |
\u00a0
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Services revenues | 5,451.0 | 4,391.2 |
Leasing revenue\u00a0\u2013 operating leases | 10,590.1 | 7,795.3 |
Interest revenue | 426.7 | 237.4 |
Leasing revenues | 11,016.8 | 8,032.6 |
Sub-Total\u00a0\u2013 Revenues from lease activity | 16,467.8 | 12,423.9 |
Proceeds of cars sold | 8,883.3 | 6,458.8 |
Total Revenues | 25,351.1 | 18,882.7 |
Total Revenues excluding Interest Income | 22,304.1 | 17,006.3 |
(in EUR million) | Rental fleet |
|---|---|
At 1\u00a0January 2023 | \u00a0 |
Gross value\u00a0 | 31,771.7 |
Accumulated depreciation & impairment | (8,544.4) |
Net book value\u00a0as at 1\u00a0January 2023 | 23,227.4 |
Year ended 31\u00a0December 2023 | \u00a0 |
Opening net book value | 23,227.4 |
Additions | 18,426.0 |
Disposals | (5,680.4) |
Scope changes | 21,460.8 |
Depreciation charge | (6,040.5) |
Impairment | (67.2) |
Transfer to inventories | (1,664.8) |
Hyperinflation adjustment | 299.7 |
Currency translation differences | (169.8) |
Closing net book value as at 31\u00a0December 2023 | 49,791.2 |
At 31\u00a0December 2023 | \u00a0 |
Gross value\u00a0 | 66,533.8 |
Accumulated depreciation & impairment (1) | (16,742.7) |
Net book value\u00a0 as at 31\u00a0December 2023 | 49,791.2 |
Year ended 31\u00a0December 2024 | \u00a0 |
Opening net book value | 49,791.2 |
Additions | 21,729.6 |
Disposals | (10,630.7) |
Scope changes | (3.2) |
Depreciation charge | (8,615.1) |
Impairment | (61.5) |
Transfer to inventories | (898.8) |
Hyperinflation adjustment | 393.3 |
Currency translation differences | (154.7) |
Closing net book value as at 31\u00a0December 2024 | 51,550.0 |
At 31\u00a0December 2024 | \u00a0 |
Gross value\u00a0 | 68,923.8 |
Accumulated depreciation & impairment (1) | (17,373.7) |
Net book value\u00a0 as at 31\u00a0December 2024 | 51,550.0 |
|
Minimum undiscounted lease payments receivable on operating leases are as follows:
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Within 1\u00a0year | 4,396.5 | 4,871.5 |
Between 1 and 2\u00a0years | 5,360.8 | 4,951.7 |
Between 2 and 3\u00a0years | 6,562.9 | 5,565.3 |
Between 3 and 4\u00a0years | 5,272.5 | 4,491.4 |
Between 4 and 5\u00a0years | 1,918.8 | 1,389.0 |
Later than 5\u00a0years | 499.4 | 144.7 |
Total | 24,010.9 | 21,413.6 |
\u00a0
As at 31\u00a0December 2024 and 2023, all the carrying amounts represents owned vehicles that are intended to be leased.
\u00a0
The Hyperinflation adjustment reflects the consumer price index inflation applied to the book value of the Turkish subsidiaries fleet of vehicles (see Note\u00a03.1 for more details). As a result of this inflation being above the expected recoverable amount for the Turkish fleet of vehicles there has been an impairment of EUR\u00a061.5\u00a0million for the year ending 31\u00a0December 2024 (2023: EUR\u00a067.2\u00a0million).
Used vehicles prices have continued to drive high profit from the used car sales activity but, as previously predicted, the used car market has been normalising with a gradual decline throughout 2024. As at 31 December 2024 no further reduction in depreciation costs has been booked (2023: 514.6\u00a0million).
\u00a0
+Increase/-decrease in expected sales proceeds per vehicle | Income statement net Impact (in EUR million) | |
|---|---|---|
2024 | 2023 | |
- EUR\u00a01,000 | (250.6) | (138.1) |
+EUR\u00a01,000 | 246.6 | 122.3 |
\u00a0
The impacts of the sensitivity analysis are not linear.
\u00a0
The Group concluded a number of asset-backed securitisation programmes which involve the sale of future lease instalment receivables and, in some cases, related residual value receivables originated by various Group subsidiaries to special purpose companies which are included in the consolidated financial statements of the Group. For further details on the securitisation transactions and transferred assets reference is made to the Note\u00a029. As a result of this sale, net book value of securitised operating lease assets amount to EUR\u00a04,648\u00a0million at 31\u00a0December 2024, (EUR\u00a06,062\u00a0million at 31\u00a0December 2023) and present value of transferred lease receivables derived from these assets is EUR\u00a05,007\u00a0million (EUR\u00a06,286\u00a0million at 31\u00a0December 2023). The transferred lease receivables cannot be sold.
(in EUR million) | Right-of-use assets (vehicles and\u00a0equipment) | Right-of-use assets (property leases) | Lease liabilities |
|---|---|---|---|
As at 1\u00a0January 2023 | 29.4 | 102.8 | 117.2 |
Additions | 18.7 | 42.6 | 64.1 |
Disposals | (25.8) | (17.5) | (44.3) |
Depreciation charge | (17.2) | (51.8) | \u2212 |
Scope changes | 4.3 | 148.1 | 162.9 |
Interest | \u2212 | \u2212 | 3.4 |
Payments | \u2212 | \u2212 | (51.9) |
Currency translation differences | 0.0 | 0.9 | 0.9 |
As at 31\u00a0December 2023 | 9.4 | 225.2 | 252.3 |
As at 1\u00a0January 2024 | 9.4 | 225.2 | 252.3 |
Additions | 12.9 | 63.1 | 66.4 |
Disposals | (5.3) | (25.1) | (40.9) |
Depreciation charge | (14.4) | (58.0) | - |
Impairment charge | \u2212 | (1.3) | \u2212 |
Impairment reversal | \u2212 | 0.3 | \u2212 |
Scope changes | \u2212 | (0.1) | (0.1) |
Interest | \u2212 | \u2212 | 6.0 |
Payments | \u2212 | \u2212 | (54.9) |
Currency translation differences | (0.0) | (1.0) | (1.0) |
As at 31\u00a0December 2024 | 2.6 | 203.1 | 227.9 |
\u00a0
In December\u00a02024 a total impairment charge was booked amounting to EUR\u00a01.3\u00a0million, split as follows: EUR\u00a00.89\u00a0million LeasePlan Nederland NV, representing expected closing of 3rd\u00a0floor of the rented office space, following the merger, and EUR\u00a00.41\u00a0million LeasePlan Digital BV, for closing of floors 4 and 6 of the rented office space, as these are no longer needed.
The 2024 impairment reversal, total amounting to EUR\u00a00.3\u00a0million, represents reversals of provisions on IFRS\u00a016, split between: EUR\u00a00.14\u00a0million Ayvens Spain Mobility Solutions\u00a0SAU, EUR\u00a00.13\u00a0million Ayvens\u00a0SA and EUR\u00a00.03\u00a0million ALD Automotive Group PLC + ALD Automotive\u00a0Ltd \u2013 UK.
\u00a0
The consolidated balance sheet shows the above amounts for right-of-use leases and lease liabilities. These property leases are generally for office spaces and car storage and range from 1 to 12\u00a0years.
Lease liabilities balance and maturity analysis:
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Not later than one year | 59.5 | 66.2 |
1-2\u00a0years | 47.1 | 55.1 |
2-3\u00a0years | 41.5 | 43.2 |
3-4\u00a0years | 33.1 | 34.7 |
4-5\u00a0years | 23.3 | 25.5 |
Later than five years | 34.8 | 40.6 |
Total | 239.3 | 265.3 |
Effect of discounting | (11.4) | (13.0) |
Lease liability | 227.9 | 252.3 |
The income statement shows the following amounts relating to lease. The cost of leases other than short term leases less than 12\u00a0months, variable leasing costs and leases of low value assets are allocated between the depreciation of right-of-use assets and a finance charge representing the unwind of the discount on lease liabilities.
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Depreciation of right-of-use assets\u00a0(1) | (72.4) | (69.0) |
Interest expense | (6.0) | (4.1) |
Result from sub-leasing right-of-use assets | (0.7) | 1.7 |
Expense relating to short term leases less than or equal to 12\u00a0months, variable leasing costs and\u00a0leases of low value | (13.5) | (11.8) |
|
\u00a0
For the year ended 31\u00a0December 2024, the total amount of cash paid in respect of leases recognised on\u00a0the consolidated balance sheet is EUR\u00a054.9\u00a0million (2023: EUR\u00a051.9\u00a0million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfLeasesExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_d4fcdc88-cdb6-4c2e-a468-8ce2d4a8680b": { "value": "As a lessor the Group is required to determine at the inception of each lease contract whether the lease arrangement is an operating lease or finance lease. This assessment considers the substance of the transaction rather than the form of the contract and classification is based on the extent to which the lease transfers the risks and rewards incidental to ownership of the underlying asset. A lease is classified as a finance lease if it transfers substantially all the risks and rewards from ownership of an asset. Conversely, an operating lease is a lease that does not transfer substantially all the risks and rewards from the ownership of an asset.
Various criteria are used to determine the lease classification of which the three most important are:
The Group as a lessor presents the assets subject to operating leases under \u201cRental fleet\u201d in the balance sheet and mainly includes vehicles under operating leases, vehicles under short term rental contracts (less than 1\u00a0year) and available for rental vehicles.
The Group leases assets to its customers for durations that normally range between three to five years. In almost all cases, the leased assets are returned to the Group at the end of the contract term. In case of early termination in most of the cases there will be a settlement invoice considering amendments. Under the operating lease classification, the customers are offered various products that have different contractual terms, but where ultimately the risks and rewards incidental to ownership are retained by the Group. A customer may be entitled to receive a portion of the net positive result from factors that have resulted in the vehicle being above its expected residual value and/or better RMT results at the end of the lease. However, any negative result risk will still be borne by the Group.
Monthly fixed operating lease fees charged to the customer for the use of the vehicle over the duration of the contract period can comprise various components each having its own revenue recognition. Any unpaid lessee receivables are recorded in the balance sheet as \u201cLease receivables from customers\u201d. See the Revenue recognition policy in Note\u00a03.4.20 for more details.
Assets under Operating lease and Rental fleet are measured at cost less accumulated depreciation and impairment losses. The cost of the operating lease cars comprises their purchase price and any incremental and directly attributable costs of bringing the assets held for use in operating leases to working condition for its intended use (e.g. smart phone integration, anti-theft devices, etc.). Import duties and non-refundable purchase taxes are included in the purchase price and any trade discounts are deducted when calculating the purchase price. Incremental direct costs may include commissions, legal fees and delivery cost where material. Furthermore, lease incentives and volume bonuses are also taken into account and depreciated over the expected lease term. The carrying amount of the Operating lease portfolio is presented in the category \u201cRental fleet\u201d on the balance sheet.
The operating lease and other leased car assets are depreciated on a straight-line basis over the estimated useful life (normally the contract period for operating leases) to their estimated residual value. The residual value and the useful life of the leased assets are reviewed at least at each financial year-end and, if expectations differ from previous estimates, the changes are accounted for prospectively as a change in accounting estimate (so-called prospective depreciation). Depreciation is recognised in the income statement as part of the \u201cLease margin\u201d or \u201cUsed car sales\u201d result for depreciation adjustments in relation to any prospective depreciation adjustments.
Depreciation is not applied to new vehicles available for lease when these vehicles are not in the condition to be leased to customers. This often applies to vehicles bought for signed lease contracts or vehicles bought with the intention to lease that are temporary stored and not ready to be used.
For the impairment accounting policy refer to Note\u00a04.3 Impairment of rental fleet. Upon termination of the lease or rental contract the relevant assets are reclassified to the caption \u201cInventories\u201d at their carrying amount if the intention is to sell the used car or remain within \u201cRental fleet\u201d if the intention is to lease the vehicle for another term.
Finance leases are recognised in the balance sheet at an amount equal to the present value of the minimum lease payments and the unguaranteed residual value, after deduction of provisions deemed necessary in respect of bad and doubtful debts and any accumulated impairment losses. Initial direct costs and down-payments that are not refundable security deposits are included in the initial measurement of the finance lease receivables. The assets are presented within the category \u201cLease receivables from customers\u201d on the balance sheet (See Note\u00a022 for further details).
The finance lease instalments can comprise various components each having its own revenue recognition. Both invoiced but unpaid amounts and unearned amounts for finance leases are recorded in the balance sheet line as \u201cLease receivables from customers\u201d. See the Revenue recognition policy in note\u00a03.4.20 for more details.
These services include arranging for vehicle delivery and administration of the title and registration process, as well as tax and insurance requirements, ensuring maintenance of the vehicle, pursuing warranty claims, providing fleet policy analysis and recommendations, benchmarking, and providing vehicle recommendations. Vehicles classified under this category are featured within the Off-Balance Sheet fleet and their related revenue is recognised within the Services revenue line.
The lease period to be applied in determining the rental payments to be discounted will match the non- cancellable period of the lease adjusted for:
The measurement of the reasonable certainty of exercising or not exercising the extension or early termination options takes into account all the facts and circumstances that may create an economic incentive to exercise or not to exercise these options.
The Group recognises right-of-use assets at the commencement date of the lease (i.e. the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of the corresponding lease liability recognised, adjusted for any lease payments made at or before the lease commencement date, plus any initial direct costs incurred and an estimate of costs for dismantling, removing, or restoring the underlying asset and less any lease incentives received.
The right-of-use assets are depreciated over the lease term, defined as the non-cancellable period for which the lessee has the right to use an underlying asset including optional periods when an entity is reasonably certain to exercise an option to extend (or not to terminate) a lease. Depreciation expense is recorded in Depreciation and amortisation in the income statement.
At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of the expected future lease payments, calculated using the Group\u2019s incremental borrowing rate, adjusted to reflect the length of the lease and country of location.
Lease payments included in the lease liability consist of each of the following:
Variable leasing costs (other than those referred to above and including those linked to usage) and the costs of non-lease components are not included in the lease liability and are charged to Leasing costs as incurred.
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change to the forecast lease payments or change in lease term. When the lease liability is remeasured, an adjustment is made to the corresponding right-of-use asset.
Leases with a term of less than or equal to 12\u00a0months or those with asset value of less than Euro 5,000 are not recognised in the balance sheet. The Group recognises payments for these leases as an expense on a straight-line basis over the lease term within \u201cGeneral and administrative expenses\u201d.
Deferred tax will be recorded based on the amount of taxable and deductible temporary differences. Generally, on the date of the initial recording of the right-of-use and the lease liability, no deferred tax is recorded as the asset value is equal to the liability value. The net temporary differences that may result from subsequent changes in the right-to-use and lease liability will result in the recognition of deferred tax.
Further details are provided in Note\u00a015 Right-of-use assets and lease liabilities.
This caption includes:
The receivables are shown after any accumulated impairment losses and are initially measured at fair value and subsequently at amortised cost using the effective interest method. Unearned finance income is the difference between the gross investment in the lease (undiscounted future minimum lease payments and unguaranteed residual value accruing to the Group) and the net investment in the lease.
An expected credit loss (ECL) provision is applied to all receivables from customers that are measured at amortised cost with the exception of those receivables deemed to be out of scope. The Group have applied this scope exemption when the receivable meets the low credit risk exemption criteria. The Group has applied this to receivables on used car sales and insurance receivables, where there is zero or almost no history of credit risk or the amounts due are from financial institutions with an investment grade credit rating.
For the other receivables from customers former LeasePlan entities have aligned with existing ALD policies as of May\u00a02024. Overall, the Group segments the receivables from customers into sound and doubtful receivables that includes receivables that have met the definition of default. For sound receivables the Group applies a simplified approach in calculating ECLs from initial recognition of the receivable, which means the Group does not track changes in significant increase in credit risk but instead recognises a loss allowance based on lifetime ECLs at each reporting date.
The Group has established a provision matrix for the sound receivables that is based on its historical credit loss experience by ageing categories, adjusted for forward-looking factors specific to the debtors and the economic environment when the impact of those factors is material to the financial statements. To establish the forward-looking element of IFRS\u00a09 provision, the Group uses macroeconomic data and analysis through local uplifts to probability of default and loss given default rates.
Since obtaining the financial holding status, the Group has aligned its definition of default to the ECB Regulatory Capital CRR Article\u00a0178 definition of default in 2023. This change applies to historic ALD entities only as LeasePlan entities were already aligned with the Article\u00a0178 definition of default due to holding a banking licence prior to the acquisition. For purposes of assessing, recognising and reporting defaults, a customer shall be considered to be in default when either one or both of the following events occur:
The application of the above guidance is only to the extent of identifying the customers that are in default. There is no change in the method of determining the value of impairment. Where the customer is in default, the whole of the customer balance is classified as doubtful, and impairment is based upon the full outstanding amount, except where we have adjudged there are mitigating circumstances.\u00a0
Alignment of LeasePlan entities with the Ayvens methodology increased the IFRS 9 provisions by EUR\u00a017.5\u00a0million as part of the purchase price allocation. Main driver of that increase is the provisioning of 100% for receivables from customers past due more than 90 consecutive days on any material credit obligation. The subsequent increase (EUR\u00a05.9\u00a0million) was accounted for as cost of risk in Q1 2024.
Expected credit losses are reassessed at each reporting date and reflect all reasonable information that is available at the reporting date. Judgement is required from management for applying appropriate models and setting assumptions for the measurement of ECL. The methodology, assumptions and data, including any forecasts of future economic conditions, macroeconomic impacts and the Group\u2019s provision matrix are reviewed regularly by management in determining the expected credit losses and the write-off of receivables. Doubtful debts should be written off as soon as the definitive loss is known.
Where the Group have acquired credit-impaired receivables from customers as part of a business combination, the gross receivable is initial recognised at fair value with no carrying impairment allowance. The Group only recognises the cumulative changes in lifetime expected credit losses since initial recognition as a loss allowance for originated purchased credit-impaired financial assets in the income statement.
Disputes often arise in the collection of lease receivables and tend to range from issues relating to the performance of various services under the contract to the amount of end-of-contract billing. A dispute has no impact on the solvency of the customer or the risk of default, and therefore is not a credit loss. As such these amounts are removed from sound receivables and a provision is applied based on our provisions accounting policy. For presentation purposes the provision is netted against the \u201cReceivables from customers\u201d balance sheet line item.
Details about the assumptions and estimation techniques used in measuring ECL for finance lease receivables and trade receivables from operating lease contracts are provided in the section Credit risk management and disclosure on the impairment provided in Note\u00a022 Lease receivables from customers.
Revenues represent the fair value of the consideration received or receivable for the sale of goods and services in the Group\u2019s ordinary course of business.
Contracts relating to vehicle leasing and service products can take the form of operating leases, finance leases and service agreements. To determine whether a contract includes an agreement for a period of time, the Group has assessed whether, throughout the period of use, the customer has both of the following:
If a contract relating to an asset fails to give the customer both of the above rights, the Group accounts for the agreement as a revenue contract. In situations where management services unrelated to an asset contract are provided, the Group accounts for the contract as a service contract.
In most situations, lease and service contracts are entered into at the same time or as a single contract with our customers. Where the customer is charged a monthly fee that both relates to the rental price of the vehicle (including depreciation and interest) and various other products and services that the customer can subscribe to, the standalone tariffed elements will be recognised as separate performance obligations if the good or service is distinct by meeting both the following criteria:
Activities or costs that transfer a good or service to the lessee are identified as non-lease components. Amounts payable for activities and costs that do not transfer a good or service are part of the total consideration and are allocated to the lease and non-lease components identified in the contract.
The lease classification, that is determined on a contract-by-contract basis, will determine if revenue recognition is on an operating lease or finance lease basis.
On operating leases, lease rental revenue (depreciation and interest) is recognised in accordance with IFRS\u00a016 on a straight-line basis over the lease term based on the total of the contractual payments divided by the number of months of the lease term.
Charges to customers may include passed on costs such as fuel, road taxes and other taxes which do not represent the inflow of economic benefits and/or are collected on behalf of third parties and are therefore not presented as revenues.
Upfront payments from customers at the beginning of the lease agreement are recognised in the balance sheet and amortised on a straight-line basis over the period of the lease agreement. Amounts paid or value provided to lessees as lease incentives are capitalised (e.g., upfront cash payments to the lessee, reimbursement or absorption of costs by the lessor or free or reduced rents given at the beginning of the lease term). Lease incentives are accounted for on a straight-line basis over the term of the related lease as a reduction in revenue.
Where a customer retains the car for a period beyond the normal return date (informal extension), the rent continues to be charged to the customer and the related contractual depreciation will continue to be recognised.
Regarding finance leases, the IFRS\u00a016\u00a0standard is applied, and the earnings are allocated between the capital amount and finance income. The capital amount is used to reduce the receivable balance and the income is recognised in the income statement in each period using the effective interest rate method to give a constant periodic rate of return on the net investment in the lease. The Group uses the net investment method to allocate gross earnings, which excludes the effect of cash flows arising from taxes and financing relating to a lease transaction. In addition:
Upfront payments and initial direct costs are taken into consideration in calculating the implicit interest rate in the lease and recognised evenly over the life of the lease.
If a contract contains a lease component and one or additional lease or non-lease components, then IFRS\u00a016 requires a lessor always to allocate the consideration in a contract following the approach in IFRS\u00a015 Revenue recognition.
The 5\u00a0steps process required by IFRS\u00a015 for non-lease components is summarised as follows:
Revenue from Fleet Management services is recognised on a straight-line basis over the term of the Fleet Management agreement.
Income related to repair, maintenance and tyres (RMT) is recognised over the term of the lease contract. The allocation of income over the term is based on the normal RMT cost profile supported by historical statistics and expected service costs. The difference between the amounts charged to customers and amounts recognised as income is accounted for as deferred leasing income. Cost profiles are reviewed periodically to ensure they remain a fair representation of historical RMT expenditures, adjusted for reasonable expectations of changes in cost profiles. Where an accurate or reliable estimate of the cost curve is not available, revenue is recognised based on an estimate of expected completion of the performance obligation using an alternative input method.
If income related to services surrounding contracts is not certain until final settlement takes place, this income is not recognised until that time and is presented within the sales result. For all other contracts, expected losses are recognised as an expense immediately when it is probable that total contract costs will exceed total contract revenues.
Flex Fleet revenues are recognised on a straight-line basis over the term of the rental agreement.
The revenue from the risk retention schemes is recognised based on the monthly lease instalment. This applies for third-party liability and own damage insurance products. Revenue recognition will cease when the contract is terminated by a customer or at the end of the contractual term.
Where interest on late payment is billed to customers, the related revenue is only recognised when settlements are made by customers.
Revenues also include the proceeds of the sale of vehicles from terminated lease contracts and lease revenues from end of contract billing such as repair costs recharged to the customer. The proceeds from the sale of vehicles are recognised when the vehicles are sold and control of the vehicles is transferred. End of contract fees may consist of fees charged to customers for mileage variation adjustments and excessive wear and tear of the vehicle. Revenues also include charges arising from deviations from the contractual terms, where the fees are recognised upon termination of the lease contract.
Income related to lease services is recognised over the term of the contract based on historical statistics and on assumptions regarding expected service costs. The assumptions may differ from the actual data as a result of changes in economic and market conditions and are periodically back tested and adjusted if considered necessary. For details in relation to the accounting of Note 3.4.20 Revenue recognition.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForLeasesExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_6605e6b8-a0e6-499a-a641-392c08682b7f": { "value": "The operating lease and other leased car assets are depreciated on a straight-line basis over the estimated useful life (normally the contract period for operating leases) to their estimated residual value. The residual value and the useful life of the leased assets are reviewed at least at each financial year-end and, if expectations differ from previous estimates, the changes are accounted for prospectively as a change in accounting estimate (so-called prospective depreciation). Depreciation is recognised in the income statement as part of the \u201cLease margin\u201d or \u201cUsed car sales\u201d result for depreciation adjustments in relation to any prospective depreciation adjustments.Depreciation is not applied to new vehicles available for lease when these vehicles are not in the condition to be leased to customers. This often applies to vehicles bought for signed lease contracts or vehicles bought with the intention to lease that are temporary stored and not ready to be used.Land is not depreciated. Depreciation on other assets is calculated using the straight-line method to allocate their cost to their residual values over their estimated useful lives, as follows:The basis for the depreciation of an asset underlying an operating lease contract and rental contracts is the investment value at cost less the estimated residual value as included in the contract, in combination with the estimated contract duration. A change in the estimated residual value and/or contract duration leads to a change in depreciation that has an effect in the current period and/or in subsequent periods. Statistical models and calculations (regression analysis) in combination with forward-looking market expectations are used to calculate a vehicle\u2019s future value as accurately as possible.
Residual values of the current running fleet are reviewed at least yearly (twice a year for the entities with more than 10,000 vehicles, one in each semester). It is performed at a local country level through a revaluation process which is reviewed and approved at Group level. The local analysts also include additional scenarios in the calculation to take into account elements that are not captured by the statistics. These scenarios include assumptions such as possible decreases of used car prices, concentration mix of vehicles and other local factors.
Current residual value embedded in the contract is compared with the expected market value on a car-by-car basis.
In accordance with IAS\u00a08, a residual value is treated as an accounting estimate. Revision of the expected residual values may result in depreciation adjustments.
\u201cLeasing costs \u2013 depreciation\u201d includes depreciation of vehicles which is calculated based on contractual residual values. Any impacts from the revision of residual values are recorded in the \u201cDepreciation costs adjustments\u201d in \u201cUsed Car Sales result and depreciation adjustments\u201d. For further detail see Note\u00a03.1 Basis of preparation.
(in EUR million) | Notes | Year ended 31\u00a0December, | |
|---|---|---|---|
2024 | 2023 | ||
Depreciation of other property and equipment | 14 | (41.1) | (34.7) |
Depreciation of intangible assets | 17 | (80.7) | (59.3) |
Depreciation of right of use assets\u00a0(1) | 15 | (50.7) | (42.0) |
Total | \u00a0 | (172.5) | (136.0) |
|
\u00a0
Ayvens continues to invest in IT as part of the Group\u2019s commitment to be the preferred choice for mobility solutions within the market. There has been a specific focus on digital solutions to further enhance customer experience, including fleet manager and driver web portals as well as investment in the development of new Flexible products for customers.
(in EUR million) | Rental fleet |
|---|---|
At 1\u00a0January 2023 | \u00a0 |
Gross value\u00a0 | 31,771.7 |
Accumulated depreciation & impairment | (8,544.4) |
Net book value\u00a0as at 1\u00a0January 2023 | 23,227.4 |
Year ended 31\u00a0December 2023 | \u00a0 |
Opening net book value | 23,227.4 |
Additions | 18,426.0 |
Disposals | (5,680.4) |
Scope changes | 21,460.8 |
Depreciation charge | (6,040.5) |
Impairment | (67.2) |
Transfer to inventories | (1,664.8) |
Hyperinflation adjustment | 299.7 |
Currency translation differences | (169.8) |
Closing net book value as at 31\u00a0December 2023 | 49,791.2 |
At 31\u00a0December 2023 | \u00a0 |
Gross value\u00a0 | 66,533.8 |
Accumulated depreciation & impairment (1) | (16,742.7) |
Net book value\u00a0 as at 31\u00a0December 2023 | 49,791.2 |
Year ended 31\u00a0December 2024 | \u00a0 |
Opening net book value | 49,791.2 |
Additions | 21,729.6 |
Disposals | (10,630.7) |
Scope changes | (3.2) |
Depreciation charge | (8,615.1) |
Impairment | (61.5) |
Transfer to inventories | (898.8) |
Hyperinflation adjustment | 393.3 |
Currency translation differences | (154.7) |
Closing net book value as at 31\u00a0December 2024 | 51,550.0 |
At 31\u00a0December 2024 | \u00a0 |
Gross value\u00a0 | 68,923.8 |
Accumulated depreciation & impairment (1) | (17,373.7) |
Net book value\u00a0 as at 31\u00a0December 2024 | 51,550.0 |
|
Minimum undiscounted lease payments receivable on operating leases are as follows:
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Within 1\u00a0year | 4,396.5 | 4,871.5 |
Between 1 and 2\u00a0years | 5,360.8 | 4,951.7 |
Between 2 and 3\u00a0years | 6,562.9 | 5,565.3 |
Between 3 and 4\u00a0years | 5,272.5 | 4,491.4 |
Between 4 and 5\u00a0years | 1,918.8 | 1,389.0 |
Later than 5\u00a0years | 499.4 | 144.7 |
Total | 24,010.9 | 21,413.6 |
\u00a0
As at 31\u00a0December 2024 and 2023, all the carrying amounts represents owned vehicles that are intended to be leased.
\u00a0
The Hyperinflation adjustment reflects the consumer price index inflation applied to the book value of the Turkish subsidiaries fleet of vehicles (see Note\u00a03.1 for more details). As a result of this inflation being above the expected recoverable amount for the Turkish fleet of vehicles there has been an impairment of EUR\u00a061.5\u00a0million for the year ending 31\u00a0December 2024 (2023: EUR\u00a067.2\u00a0million).
Used vehicles prices have continued to drive high profit from the used car sales activity but, as previously predicted, the used car market has been normalising with a gradual decline throughout 2024. As at 31 December 2024 no further reduction in depreciation costs has been booked (2023: 514.6\u00a0million).
\u00a0
+Increase/-decrease in expected sales proceeds per vehicle | Income statement net Impact (in EUR million) | |
|---|---|---|
2024 | 2023 | |
- EUR\u00a01,000 | (250.6) | (138.1) |
+EUR\u00a01,000 | 246.6 | 122.3 |
\u00a0
The impacts of the sensitivity analysis are not linear.
\u00a0
The Group concluded a number of asset-backed securitisation programmes which involve the sale of future lease instalment receivables and, in some cases, related residual value receivables originated by various Group subsidiaries to special purpose companies which are included in the consolidated financial statements of the Group. For further details on the securitisation transactions and transferred assets reference is made to the Note\u00a029. As a result of this sale, net book value of securitised operating lease assets amount to EUR\u00a04,648\u00a0million at 31\u00a0December 2024, (EUR\u00a06,062\u00a0million at 31\u00a0December 2023) and present value of transferred lease receivables derived from these assets is EUR\u00a05,007\u00a0million (EUR\u00a06,286\u00a0million at 31\u00a0December 2023). The transferred lease receivables cannot be sold.
(in EUR million) | Software (internally generated) | Software licenses (external) | Customer relationships | Assets under construction | Other | Total |
|---|---|---|---|---|---|---|
At 1\u00a0January 2023 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Gross value\u00a0 | 104.6 | 84.6 | 20.3 | 31.9 | 3.7 | 245.0 |
Accumulated amortisation and impairment | (45.8) | (66.7) | (5.9) | \u2212 | (0.0) | (118.4) |
Net book value as at 1\u00a0January 2023 | 58.8 | 17.9 | 14.4 | 31.9 | 3.7 | 126.6 |
Year ended 31\u00a0December 2023 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Opening net book value | 58.8 | 17.9 | 14.4 | 31.9 | 3.7 | 126.6 |
Additions\u00a0(1) | 71.1 | 16.2 | 279.0 | 112.8 | 0.1 | 479.3 |
Divestments | (0.0) | (2.1) | \u2212 | (18.5) | (3.6) | (24.1) |
Impairment | (1.6) | \u2212 | \u2212 | \u2212 | \u2212 | (1.6) |
Amortisation | (54.8) | (10.9) | (13.3) | \u2212 | (4.8) | (83.8) |
Scope changes\u00a0(1) | (26.6) | 18.0 | 4.6 | 143.8 | 9.6 | 149.4 |
Currency translation differences | 0.3 | (0.1) | \u2212 | \u2212 | 0.0 | 0.2 |
Closing net book as at 31\u00a0December 2023 | 47.1 | 39.0 | 284.7 | 270.0 | 5.1 | 645.9 |
At 31\u00a0December 2023 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Gross value\u00a0 | 475.9 | 152.7 | 303.9 | 270.0 | 9.8 | 1,212.3 |
Accumulated amortisation and impairment | (428.8) | (113.7) | (19.2) | \u2212 | (4.7) | (566.4) |
Net book value \u00a0as at 31\u00a0December 2023 | 47.1 | 39.0 | 284.7 | 270.0 | 5.1 | 645.9 |
Year ended 31\u00a0December 2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Opening net book value | 47.1 | 39.0 | 284.7 | 270.0 | 5.1 | 645.9 |
Additions | 19.8 | 17.7 | \u2212 | 86.5 | \u2212 | 124.0 |
Divestments | (6.3) | (0.0) | (0.5) | \u2212 | (0.1) | (6.8) |
Reclassification | 267.5 | (0.1) | \u2212 | (267.5) | \u2212 | \u2212 |
Amortisation | (62.3) | (13.5) | (20.5) | \u2212 | (4.9) | (101.2) |
Scope changes | \u2212 | \u2212 | \u2212 | \u2212 | \u2212 | \u2212 |
Currency translation differences | 1.0 | (0.2) | \u2212 | (0.0) | 0.0 | 0.8 |
Closing net book value \u00a0as at 31\u00a0December 2024 | 267.0 | 42.9 | 263.7 | 89.0 | 0.1 | 662.9 |
At 31\u00a0December 2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Gross value\u00a0 | 553.0 | 153.4 | 303.9 | 89.0 | 9.7 | 1,109.0 |
Accumulated amortisation and impairment | (286.0) | (110.3) | (40.2) | \u2212 | (9.6) | (446.0) |
Net book value as at 31\u00a0December 2024 | 267.0 | 43.1 | 263.7 | 89.0 | 0.1 | 662.9 |
|
\u00a0
In 2024 the purchase price allocation was updated. This included a further decrease of EUR\u00a062.6\u00a0million in the value of LeasePlan\u2019s software at the date of acquisition due to a completion rate adjustment, corrections of previous modifications and confirmation of structural problems.
LeasePlan\u2019s Next Generation Digital Architecture programme, launched in 2019 to deliver a harmonized and standardized global digital architecture, was scaled down to 3 entities after the signature of the acquisition MoU in January\u00a02022. The Group started a thorough review of this programme immediately after the acquisition closing. In the context of the LeasePlan purchase price allocation, taking into account the significant delay in deployment and the articulation with rest of the IT architecture, the Group decided to stop new developments, while re-using assets of value and leveraging with ALD\u2019s strong back-office systems. As a result, at the date of the acquisition this intangible asset was marked down by EUR\u00a0203\u00a0million (net book value as at end 2023: EUR\u00a0262\u00a0million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfDepreciationAndAmortisationExpenseExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_4764268e-9ecb-431b-997b-590518594bac": { "value": "The operating lease and other leased car assets are depreciated on a straight-line basis over the estimated useful life (normally the contract period for operating leases) to their estimated residual value. The residual value and the useful life of the leased assets are reviewed at least at each financial year-end and, if expectations differ from previous estimates, the changes are accounted for prospectively as a change in accounting estimate (so-called prospective depreciation). Depreciation is recognised in the income statement as part of the \u201cLease margin\u201d or \u201cUsed car sales\u201d result for depreciation adjustments in relation to any prospective depreciation adjustments.Depreciation is not applied to new vehicles available for lease when these vehicles are not in the condition to be leased to customers. This often applies to vehicles bought for signed lease contracts or vehicles bought with the intention to lease that are temporary stored and not ready to be used.Land is not depreciated. Depreciation on other assets is calculated using the straight-line method to allocate their cost to their residual values over their estimated useful lives, as follows:The basis for the depreciation of an asset underlying an operating lease contract and rental contracts is the investment value at cost less the estimated residual value as included in the contract, in combination with the estimated contract duration. A change in the estimated residual value and/or contract duration leads to a change in depreciation that has an effect in the current period and/or in subsequent periods. Statistical models and calculations (regression analysis) in combination with forward-looking market expectations are used to calculate a vehicle\u2019s future value as accurately as possible.
Residual values of the current running fleet are reviewed at least yearly (twice a year for the entities with more than 10,000 vehicles, one in each semester). It is performed at a local country level through a revaluation process which is reviewed and approved at Group level. The local analysts also include additional scenarios in the calculation to take into account elements that are not captured by the statistics. These scenarios include assumptions such as possible decreases of used car prices, concentration mix of vehicles and other local factors.
Current residual value embedded in the contract is compared with the expected market value on a car-by-car basis.
In accordance with IAS\u00a08, a residual value is treated as an accounting estimate. Revision of the expected residual values may result in depreciation adjustments.
\u201cLeasing costs \u2013 depreciation\u201d includes depreciation of vehicles which is calculated based on contractual residual values. Any impacts from the revision of residual values are recorded in the \u201cDepreciation costs adjustments\u201d in \u201cUsed Car Sales result and depreciation adjustments\u201d. For further detail see Note\u00a03.1 Basis of preparation.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDepreciationExpenseExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_9e917009-18e2-4fe1-a7b4-6d1a9f714492": { "value": "Other property and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. Cost includes expenditures that are directly attributable to the acquisition of the asset. Subsequent expenditure on property and equipment is recognised in the carrying amount of the item only when it increases the future economic benefits embodied in the specific asset to which it relates, and its costs can be measured reliably. All other expenditure, including repairs and maintenance costs, are charged to the income statement during the period in which they are incurred.
Land is not depreciated. Depreciation on other assets is calculated using the straight-line method to allocate their cost to their residual values over their estimated useful lives, as follows:
When parts of an item of other property and equipment have different useful lives, they are accounted for as separate items (major components). The carrying amount of a replaced part is derecognised when replaced. Residual values, method of depreciation and useful lives of the assets are reviewed annually and adjusted if appropriate. In case of an indicator that an impairment could exist, an asset\u2019s carrying amount is written down immediately to its recoverable amount if the asset\u2019s carrying amount is greater than its estimated recoverable amount.
The basis for the depreciation of an asset underlying an operating lease contract and rental contracts is the investment value at cost less the estimated residual value as included in the contract, in combination with the estimated contract duration. A change in the estimated residual value and/or contract duration leads to a change in depreciation that has an effect in the current period and/or in subsequent periods. Statistical models and calculations (regression analysis) in combination with forward-looking market expectations are used to calculate a vehicle\u2019s future value as accurately as possible.
Residual values of the current running fleet are reviewed at least yearly (twice a year for the entities with more than 10,000 vehicles, one in each semester). It is performed at a local country level through a revaluation process which is reviewed and approved at Group level. The local analysts also include additional scenarios in the calculation to take into account elements that are not captured by the statistics. These scenarios include assumptions such as possible decreases of used car prices, concentration mix of vehicles and other local factors.
Current residual value embedded in the contract is compared with the expected market value on a car-by-car basis.
In accordance with IAS\u00a08, a residual value is treated as an accounting estimate. Revision of the expected residual values may result in depreciation adjustments.
\u201cLeasing costs \u2013 depreciation\u201d includes depreciation of vehicles which is calculated based on contractual residual values. Any impacts from the revision of residual values are recorded in the \u201cDepreciation costs adjustments\u201d in \u201cUsed Car Sales result and depreciation adjustments\u201d. For further detail see Note\u00a03.1 Basis of preparation.
In the annual assessment, on a country level, of whether there is any indication that assets may be impaired, the Group considers both external as well as internal sources of information. If such indication for impairment exists, an analysis is performed to assess whether the carrying value of the asset or cash generating unit under an operating lease exceeds the recoverable amount, being the higher of the fair value less costs to sell and the value in use. The value in use is determined at the present value of the future cash flows expected to be derived from the object or cash generating unit. The management closely monitors residual values, which are reviewed internally at least each financial year, due to it being an important input in determining value in use. The original residual values within internal systems will be compared to the revised residual values expected at contract termination, following a review. The results of this exercise will be used to assess the level of exposure, reserves held and potential impairment required. To prevent impairment on residual values, each country completes a minimum of one annual review of pricing under the supervision of the Group to ensure that assumptions used in pricing reflect expected future market conditions, thus ensuring residual values are predicted with a reasonable degree of accuracy and on a consistent basis going forward. In 2024, there was no indication that an impairment exists.
Further details are provided in Note\u00a013 Rental fleet.
(in EUR million) | Land | Property | Equipment | Total |
|---|---|---|---|---|
At 1\u00a0January 2023 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Gross value\u00a0 | 11.4 | 67.9 | 114.4 | 193.7 |
Accumulated depreciation & impairment | \u00a0 | (39.5) | (57.3) | (96.8) |
Net book value\u00a0 as at 1\u00a0January 2023 | 11.4 | 28.3 | 57.2 | 96.9 |
Year ended 31\u00a0December 2023 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Opening net book amount | 11.4 | 28.3 | 57.2 | 96.9 |
Additions | \u2212 | 3.6 | 73.3 | 76.9 |
Disposals | \u2212 | (0.7) | (37.1) | (37.8) |
Depreciation charge | \u2212 | (6.9) | (29.4) | (36.3) |
Transfer to assets qualified as held-for-sale | \u2212 | 0.0 | (0.0) | 0.0 |
Scope changes | 0.8 | 4.5 | 89.3 | 94.6 |
Hyperinflation adjustment\u00a0(1) | \u2212 | \u2212 | (0.0) | (0.0) |
Currency translation differences | \u2212 | 0.0 | 0.0 | 0.0 |
Closing net book value as at 31\u00a0December 2023 | 12.2 | 28.9 | 153.2 | 194.2 |
At 31\u00a0December 2023 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Gross value\u00a0 | 12.2 | 81.4 | 331.0 | 424.6 |
Accumulated depreciation & impairment | \u00a0 | (52.5) | (177.9) | (230.4) |
Net book value\u00a0 as at 31\u00a0December 2023 | 12.2 | 28.9 | 153.2 | 194.2 |
Opening net book amount | 12.2 | 28.9 | 153.2 | 194.2 |
Additions | \u2212 | 10.1 | 67.6 | 77.7 |
Disposals | \u2212 | (1.2) | (41.2) | (42.4) |
Depreciation charge | \u2212 | (5.9) | (38.1) | (44.0) |
Transfer to assets qualified as held-for-sale | \u2212 | (1.0) | (0.9) | (1.9) |
Scope changes | \u2212 | \u2212 | (0.2) | (0.2) |
Hyperinflation adjustment\u00a0(1) | \u2212 | \u2212 | 1.2 | 1.2 |
Currency translation differences | \u2212 | (0.0) | (0.7) | (0.7) |
Closing net book value as at 31\u00a0December 2024 | 12.2 | 30.9 | 140.9 | 184.0 |
At 31\u00a0December 2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Gross value\u00a0 | 12.2 | 70.9 | 316.7 | 399.8 |
Accumulated depreciation & impairment | \u00a0 | (40.0) | (175.8) | (215.8) |
Net book value\u00a0 as at 31\u00a0December 2024 | 12.2 | 30.9 | 140.9 | 184.0 |
|
\u00a0
The title to the other property and equipment is not restricted and these assets are not pledged as security for liabilities.
At 31\u00a0December 2024 and 2023 there was no impairment on the \u201cOther property and equipment\u201d.
", "dimensions": { "concept": "ifrs-full:DisclosureOfPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_85f28761-a77a-4561-9d81-052e0056357a": { "value": "Other property and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. Cost includes expenditures that are directly attributable to the acquisition of the asset. Subsequent expenditure on property and equipment is recognised in the carrying amount of the item only when it increases the future economic benefits embodied in the specific asset to which it relates, and its costs can be measured reliably. All other expenditure, including repairs and maintenance costs, are charged to the income statement during the period in which they are incurred.
Land is not depreciated. Depreciation on other assets is calculated using the straight-line method to allocate their cost to their residual values over their estimated useful lives, as follows:
When parts of an item of other property and equipment have different useful lives, they are accounted for as separate items (major components). The carrying amount of a replaced part is derecognised when replaced. Residual values, method of depreciation and useful lives of the assets are reviewed annually and adjusted if appropriate. In case of an indicator that an impairment could exist, an asset\u2019s carrying amount is written down immediately to its recoverable amount if the asset\u2019s carrying amount is greater than its estimated recoverable amount.
The basis for the depreciation of an asset underlying an operating lease contract and rental contracts is the investment value at cost less the estimated residual value as included in the contract, in combination with the estimated contract duration. A change in the estimated residual value and/or contract duration leads to a change in depreciation that has an effect in the current period and/or in subsequent periods. Statistical models and calculations (regression analysis) in combination with forward-looking market expectations are used to calculate a vehicle\u2019s future value as accurately as possible.
Residual values of the current running fleet are reviewed at least yearly (twice a year for the entities with more than 10,000 vehicles, one in each semester). It is performed at a local country level through a revaluation process which is reviewed and approved at Group level. The local analysts also include additional scenarios in the calculation to take into account elements that are not captured by the statistics. These scenarios include assumptions such as possible decreases of used car prices, concentration mix of vehicles and other local factors.
Current residual value embedded in the contract is compared with the expected market value on a car-by-car basis.
In accordance with IAS\u00a08, a residual value is treated as an accounting estimate. Revision of the expected residual values may result in depreciation adjustments.
\u201cLeasing costs \u2013 depreciation\u201d includes depreciation of vehicles which is calculated based on contractual residual values. Any impacts from the revision of residual values are recorded in the \u201cDepreciation costs adjustments\u201d in \u201cUsed Car Sales result and depreciation adjustments\u201d. For further detail see Note\u00a03.1 Basis of preparation.
In the annual assessment, on a country level, of whether there is any indication that assets may be impaired, the Group considers both external as well as internal sources of information. If such indication for impairment exists, an analysis is performed to assess whether the carrying value of the asset or cash generating unit under an operating lease exceeds the recoverable amount, being the higher of the fair value less costs to sell and the value in use. The value in use is determined at the present value of the future cash flows expected to be derived from the object or cash generating unit. The management closely monitors residual values, which are reviewed internally at least each financial year, due to it being an important input in determining value in use. The original residual values within internal systems will be compared to the revised residual values expected at contract termination, following a review. The results of this exercise will be used to assess the level of exposure, reserves held and potential impairment required. To prevent impairment on residual values, each country completes a minimum of one annual review of pricing under the supervision of the Group to ensure that assumptions used in pricing reflect expected future market conditions, thus ensuring residual values are predicted with a reasonable degree of accuracy and on a consistent basis going forward. In 2024, there was no indication that an impairment exists.
Further details are provided in Note\u00a013 Rental fleet.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_3c641327-1da7-4028-8b19-650623ca704a": { "value": "Goodwill arises on the acquisition of subsidiaries, associates and joint ventures and represents the excess of the consideration transferred over the Group\u2019s interest in the net fair value of the net identifiable assets, liabilities and contingent liabilities of the acquirer. Goodwill is measured at cost less any accumulated impairment losses. When the excess is negative (negative goodwill), it is recognised immediately in the statement of income.
For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash-generating units (\u201cCGUs\u201d), or groups of CGUs, which is expected to benefit from the synergies of the combination. Each unit or group of units to which the goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes.
Goodwill is monitored at an aggregated level (\u201cregions\u201d) as internal management reporting is organised to measure performance (and prepare business plans) at a higher level (group of CGUs). The Group identified the 4 following regions:
Goodwill impairment reviews are undertaken annually or more frequently if events or changes in circumstances indicate a potential impairment. The carrying value of goodwill is compared to the recoverable amount, which is the higher of value in use and the fair value less costs to sell. Any impairment is recognised immediately as an expense and is not subsequently reversed.
Further details are provided in Note\u00a016 Goodwill.
\u00a0
Internal software development costs are capitalised during the application development stage. The costs capitalised relate to external direct costs of materials and services and employee costs related to the time spent on the project during the capitalisation period. Capitalised software is evaluated for impairment annually or when changing circumstances indicate that amounts capitalised may be impaired. Impaired items are written down to their estimated fair values at the date of evaluation.
Internally developed software is normally depreciated over its useful life, generally 3 to 5\u00a0years; however, in some instances this can be longer.
In determining whether goodwill is impaired requires an estimation of the value in use of the groups of cash generating units to which the goodwill assets have been allocated. The key assumptions calculating the value in use are those regarding discount rates, growth rates and other expected changes in cash flows. The estimates and assumptions used are disclosed in Note\u00a016 Goodwill of these consolidated financial statements.
The Group tests annually whether goodwill has suffered any impairment, in accordance with the accounting policy stated presented in Note\u00a03.4.6 of these consolidated financial statements. The recoverable amounts of cash-generating units have been determined based on value-in-use calculations. These calculations require the use of estimates. The Group uses a five-year business plan for each of the group of CGUs identified. The business plans used incorporated assumptions relevant to the current economic climate such as fleet growth, used car market and credit risk.
For goodwill, sensitivity tests are carried out to measure the impact on each group of CGU\u2019s recoverable value based on certain assumptions, refer to Note\u00a016 Goodwill.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsAndGoodwillExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_aeed6f78-5dc5-481f-aea0-842264beaeb6": { "value": "Goodwill arises on the acquisition of subsidiaries, associates and joint ventures and represents the excess of the consideration transferred over the Group\u2019s interest in the net fair value of the net identifiable assets, liabilities and contingent liabilities of the acquirer. Goodwill is measured at cost less any accumulated impairment losses. When the excess is negative (negative goodwill), it is recognised immediately in the statement of income.
For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash-generating units (\u201cCGUs\u201d), or groups of CGUs, which is expected to benefit from the synergies of the combination. Each unit or group of units to which the goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes.
Goodwill is monitored at an aggregated level (\u201cregions\u201d) as internal management reporting is organised to measure performance (and prepare business plans) at a higher level (group of CGUs). The Group identified the 4 following regions:
Goodwill impairment reviews are undertaken annually or more frequently if events or changes in circumstances indicate a potential impairment. The carrying value of goodwill is compared to the recoverable amount, which is the higher of value in use and the fair value less costs to sell. Any impairment is recognised immediately as an expense and is not subsequently reversed.
Further details are provided in Note\u00a016 Goodwill.
In determining whether goodwill is impaired requires an estimation of the value in use of the groups of cash generating units to which the goodwill assets have been allocated. The key assumptions calculating the value in use are those regarding discount rates, growth rates and other expected changes in cash flows. The estimates and assumptions used are disclosed in Note\u00a016 Goodwill of these consolidated financial statements.
The Group tests annually whether goodwill has suffered any impairment, in accordance with the accounting policy stated presented in Note\u00a03.4.6 of these consolidated financial statements. The recoverable amounts of cash-generating units have been determined based on value-in-use calculations. These calculations require the use of estimates. The Group uses a five-year business plan for each of the group of CGUs identified. The business plans used incorporated assumptions relevant to the current economic climate such as fleet growth, used car market and credit risk.
For goodwill, sensitivity tests are carried out to measure the impact on each group of CGU\u2019s recoverable value based on certain assumptions, refer to Note\u00a016 Goodwill.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForGoodwillExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_9161b080-a4f3-459b-9e19-3a2a4acad28b": { "value": "Internal software development costs are capitalised during the application development stage. The costs capitalised relate to external direct costs of materials and services and employee costs related to the time spent on the project during the capitalisation period. Capitalised software is evaluated for impairment annually or when changing circumstances indicate that amounts capitalised may be impaired. Impaired items are written down to their estimated fair values at the date of evaluation.
Internally developed software is normally depreciated over its useful life, generally 3 to 5\u00a0years; however, in some instances this can be longer.
(in EUR million) | Software (internally generated) | Software licenses (external) | Customer relationships | Assets under construction | Other | Total |
|---|---|---|---|---|---|---|
At 1\u00a0January 2023 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Gross value\u00a0 | 104.6 | 84.6 | 20.3 | 31.9 | 3.7 | 245.0 |
Accumulated amortisation and impairment | (45.8) | (66.7) | (5.9) | \u2212 | (0.0) | (118.4) |
Net book value as at 1\u00a0January 2023 | 58.8 | 17.9 | 14.4 | 31.9 | 3.7 | 126.6 |
Year ended 31\u00a0December 2023 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Opening net book value | 58.8 | 17.9 | 14.4 | 31.9 | 3.7 | 126.6 |
Additions\u00a0(1) | 71.1 | 16.2 | 279.0 | 112.8 | 0.1 | 479.3 |
Divestments | (0.0) | (2.1) | \u2212 | (18.5) | (3.6) | (24.1) |
Impairment | (1.6) | \u2212 | \u2212 | \u2212 | \u2212 | (1.6) |
Amortisation | (54.8) | (10.9) | (13.3) | \u2212 | (4.8) | (83.8) |
Scope changes\u00a0(1) | (26.6) | 18.0 | 4.6 | 143.8 | 9.6 | 149.4 |
Currency translation differences | 0.3 | (0.1) | \u2212 | \u2212 | 0.0 | 0.2 |
Closing net book as at 31\u00a0December 2023 | 47.1 | 39.0 | 284.7 | 270.0 | 5.1 | 645.9 |
At 31\u00a0December 2023 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Gross value\u00a0 | 475.9 | 152.7 | 303.9 | 270.0 | 9.8 | 1,212.3 |
Accumulated amortisation and impairment | (428.8) | (113.7) | (19.2) | \u2212 | (4.7) | (566.4) |
Net book value \u00a0as at 31\u00a0December 2023 | 47.1 | 39.0 | 284.7 | 270.0 | 5.1 | 645.9 |
Year ended 31\u00a0December 2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Opening net book value | 47.1 | 39.0 | 284.7 | 270.0 | 5.1 | 645.9 |
Additions | 19.8 | 17.7 | \u2212 | 86.5 | \u2212 | 124.0 |
Divestments | (6.3) | (0.0) | (0.5) | \u2212 | (0.1) | (6.8) |
Reclassification | 267.5 | (0.1) | \u2212 | (267.5) | \u2212 | \u2212 |
Amortisation | (62.3) | (13.5) | (20.5) | \u2212 | (4.9) | (101.2) |
Scope changes | \u2212 | \u2212 | \u2212 | \u2212 | \u2212 | \u2212 |
Currency translation differences | 1.0 | (0.2) | \u2212 | (0.0) | 0.0 | 0.8 |
Closing net book value \u00a0as at 31\u00a0December 2024 | 267.0 | 42.9 | 263.7 | 89.0 | 0.1 | 662.9 |
At 31\u00a0December 2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Gross value\u00a0 | 553.0 | 153.4 | 303.9 | 89.0 | 9.7 | 1,109.0 |
Accumulated amortisation and impairment | (286.0) | (110.3) | (40.2) | \u2212 | (9.6) | (446.0) |
Net book value as at 31\u00a0December 2024 | 267.0 | 43.1 | 263.7 | 89.0 | 0.1 | 662.9 |
|
\u00a0
In 2024 the purchase price allocation was updated. This included a further decrease of EUR\u00a062.6\u00a0million in the value of LeasePlan\u2019s software at the date of acquisition due to a completion rate adjustment, corrections of previous modifications and confirmation of structural problems.
LeasePlan\u2019s Next Generation Digital Architecture programme, launched in 2019 to deliver a harmonized and standardized global digital architecture, was scaled down to 3 entities after the signature of the acquisition MoU in January\u00a02022. The Group started a thorough review of this programme immediately after the acquisition closing. In the context of the LeasePlan purchase price allocation, taking into account the significant delay in deployment and the articulation with rest of the IT architecture, the Group decided to stop new developments, while re-using assets of value and leveraging with ALD\u2019s strong back-office systems. As a result, at the date of the acquisition this intangible asset was marked down by EUR\u00a0203\u00a0million (net book value as at end 2023: EUR\u00a0262\u00a0million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfIntangibleAssetsExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_63202262-04d6-4bcd-bfd9-24de86f94613": { "value": "Internal software development costs are capitalised during the application development stage. The costs capitalised relate to external direct costs of materials and services and employee costs related to the time spent on the project during the capitalisation period. Capitalised software is evaluated for impairment annually or when changing circumstances indicate that amounts capitalised may be impaired. Impaired items are written down to their estimated fair values at the date of evaluation.
Internally developed software is normally depreciated over its useful life, generally 3 to 5\u00a0years; however, in some instances this can be longer.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsOtherThanGoodwillExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_ba82a453-556e-4a6b-ab8a-3c39f57aee5f": { "value": "Assets that have an indefinite useful life \u2013 for example, goodwill or some intangible assets \u2013 are not subject to amortisation and are tested annually for impairment. Assets that are subject to amortisation are reviewed for impairment when there is an indication that the asset may be impaired. An impairment loss is recognised for the amount by which the asset\u2019s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset\u2019s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). Non-financial assets other than goodwill, that suffered impairment, are reviewed for possible reversal of the impairment at each reporting date.
Further details of Rental fleet impairment, refer to Note\u00a04.3 \u201cImpairment of Rental fleet\u201d.
An expected credit loss (ECL) provision is applied to all receivables from customers that are measured at amortised cost with the exception of those receivables deemed to be out of scope. The Group have applied this scope exemption when the receivable meets the low credit risk exemption criteria. The Group has applied this to receivables on used car sales and insurance receivables, where there is zero or almost no history of credit risk or the amounts due are from financial institutions with an investment grade credit rating.
For the other receivables from customers former LeasePlan entities have aligned with existing ALD policies as of May\u00a02024. Overall, the Group segments the receivables from customers into sound and doubtful receivables that includes receivables that have met the definition of default. For sound receivables the Group applies a simplified approach in calculating ECLs from initial recognition of the receivable, which means the Group does not track changes in significant increase in credit risk but instead recognises a loss allowance based on lifetime ECLs at each reporting date.
The Group has established a provision matrix for the sound receivables that is based on its historical credit loss experience by ageing categories, adjusted for forward-looking factors specific to the debtors and the economic environment when the impact of those factors is material to the financial statements. To establish the forward-looking element of IFRS\u00a09 provision, the Group uses macroeconomic data and analysis through local uplifts to probability of default and loss given default rates.
Since obtaining the financial holding status, the Group has aligned its definition of default to the ECB Regulatory Capital CRR Article\u00a0178 definition of default in 2023. This change applies to historic ALD entities only as LeasePlan entities were already aligned with the Article\u00a0178 definition of default due to holding a banking licence prior to the acquisition. For purposes of assessing, recognising and reporting defaults, a customer shall be considered to be in default when either one or both of the following events occur:
The application of the above guidance is only to the extent of identifying the customers that are in default. There is no change in the method of determining the value of impairment. Where the customer is in default, the whole of the customer balance is classified as doubtful, and impairment is based upon the full outstanding amount, except where we have adjudged there are mitigating circumstances.\u00a0
Alignment of LeasePlan entities with the Ayvens methodology increased the IFRS 9 provisions by EUR\u00a017.5\u00a0million as part of the purchase price allocation. Main driver of that increase is the provisioning of 100% for receivables from customers past due more than 90 consecutive days on any material credit obligation. The subsequent increase (EUR\u00a05.9\u00a0million) was accounted for as cost of risk in Q1 2024.
Expected credit losses are reassessed at each reporting date and reflect all reasonable information that is available at the reporting date. Judgement is required from management for applying appropriate models and setting assumptions for the measurement of ECL. The methodology, assumptions and data, including any forecasts of future economic conditions, macroeconomic impacts and the Group\u2019s provision matrix are reviewed regularly by management in determining the expected credit losses and the write-off of receivables. Doubtful debts should be written off as soon as the definitive loss is known.
Where the Group have acquired credit-impaired receivables from customers as part of a business combination, the gross receivable is initial recognised at fair value with no carrying impairment allowance. The Group only recognises the cumulative changes in lifetime expected credit losses since initial recognition as a loss allowance for originated purchased credit-impaired financial assets in the income statement.
Disputes often arise in the collection of lease receivables and tend to range from issues relating to the performance of various services under the contract to the amount of end-of-contract billing. A dispute has no impact on the solvency of the customer or the risk of default, and therefore is not a credit loss. As such these amounts are removed from sound receivables and a provision is applied based on our provisions accounting policy. For presentation purposes the provision is netted against the \u201cReceivables from customers\u201d balance sheet line item.
Details about the assumptions and estimation techniques used in measuring ECL for finance lease receivables and trade receivables from operating lease contracts are provided in the section Credit risk management and disclosure on the impairment provided in Note\u00a022 Lease receivables from customers.
The basis for the depreciation of an asset underlying an operating lease contract and rental contracts is the investment value at cost less the estimated residual value as included in the contract, in combination with the estimated contract duration. A change in the estimated residual value and/or contract duration leads to a change in depreciation that has an effect in the current period and/or in subsequent periods. Statistical models and calculations (regression analysis) in combination with forward-looking market expectations are used to calculate a vehicle\u2019s future value as accurately as possible.
Residual values of the current running fleet are reviewed at least yearly (twice a year for the entities with more than 10,000 vehicles, one in each semester). It is performed at a local country level through a revaluation process which is reviewed and approved at Group level. The local analysts also include additional scenarios in the calculation to take into account elements that are not captured by the statistics. These scenarios include assumptions such as possible decreases of used car prices, concentration mix of vehicles and other local factors.
Current residual value embedded in the contract is compared with the expected market value on a car-by-car basis.
In accordance with IAS\u00a08, a residual value is treated as an accounting estimate. Revision of the expected residual values may result in depreciation adjustments.
\u201cLeasing costs \u2013 depreciation\u201d includes depreciation of vehicles which is calculated based on contractual residual values. Any impacts from the revision of residual values are recorded in the \u201cDepreciation costs adjustments\u201d in \u201cUsed Car Sales result and depreciation adjustments\u201d. For further detail see Note\u00a03.1 Basis of preparation.
In determining whether goodwill is impaired requires an estimation of the value in use of the groups of cash generating units to which the goodwill assets have been allocated. The key assumptions calculating the value in use are those regarding discount rates, growth rates and other expected changes in cash flows. The estimates and assumptions used are disclosed in Note\u00a016 Goodwill of these consolidated financial statements.
The Group tests annually whether goodwill has suffered any impairment, in accordance with the accounting policy stated presented in Note\u00a03.4.6 of these consolidated financial statements. The recoverable amounts of cash-generating units have been determined based on value-in-use calculations. These calculations require the use of estimates. The Group uses a five-year business plan for each of the group of CGUs identified. The business plans used incorporated assumptions relevant to the current economic climate such as fleet growth, used car market and credit risk.
For goodwill, sensitivity tests are carried out to measure the impact on each group of CGU\u2019s recoverable value based on certain assumptions, refer to Note\u00a016 Goodwill.
In the annual assessment, on a country level, of whether there is any indication that assets may be impaired, the Group considers both external as well as internal sources of information. If such indication for impairment exists, an analysis is performed to assess whether the carrying value of the asset or cash generating unit under an operating lease exceeds the recoverable amount, being the higher of the fair value less costs to sell and the value in use. The value in use is determined at the present value of the future cash flows expected to be derived from the object or cash generating unit. The management closely monitors residual values, which are reviewed internally at least each financial year, due to it being an important input in determining value in use. The original residual values within internal systems will be compared to the revised residual values expected at contract termination, following a review. The results of this exercise will be used to assess the level of exposure, reserves held and potential impairment required. To prevent impairment on residual values, each country completes a minimum of one annual review of pricing under the supervision of the Group to ensure that assumptions used in pricing reflect expected future market conditions, thus ensuring residual values are predicted with a reasonable degree of accuracy and on a consistent basis going forward. In 2024, there was no indication that an impairment exists.
Further details are provided in Note\u00a013 Rental fleet.
Details about the methodology in measuring ECL for finance lease receivables and trade receivables from operating lease contracts are provided in Note\u00a022 Lease receivables from customers. Expected credit losses are reassessed at each reporting date and reflect all reasonable information that is available at the reporting date. Judgement is required from management for applying appropriate models and setting assumptions for the measurement of ECL. The methodology, assumptions and data, including any forecasts of future economic conditions, macroeconomic impacts and the Group\u2019s provision matrix are reviewed regularly by management in determining the expected credit losses and the write-off of receivables.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfAssetsExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_82262a8f-c630-4e16-bea1-1a84572e6313": { "value": "Assets that have an indefinite useful life \u2013 for example, goodwill or some intangible assets \u2013 are not subject to amortisation and are tested annually for impairment. Assets that are subject to amortisation are reviewed for impairment when there is an indication that the asset may be impaired. An impairment loss is recognised for the amount by which the asset\u2019s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset\u2019s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). Non-financial assets other than goodwill, that suffered impairment, are reviewed for possible reversal of the impairment at each reporting date.
Further details of Rental fleet impairment, refer to Note\u00a04.3 \u201cImpairment of Rental fleet\u201d.
The basis for the depreciation of an asset underlying an operating lease contract and rental contracts is the investment value at cost less the estimated residual value as included in the contract, in combination with the estimated contract duration. A change in the estimated residual value and/or contract duration leads to a change in depreciation that has an effect in the current period and/or in subsequent periods. Statistical models and calculations (regression analysis) in combination with forward-looking market expectations are used to calculate a vehicle\u2019s future value as accurately as possible.
Residual values of the current running fleet are reviewed at least yearly (twice a year for the entities with more than 10,000 vehicles, one in each semester). It is performed at a local country level through a revaluation process which is reviewed and approved at Group level. The local analysts also include additional scenarios in the calculation to take into account elements that are not captured by the statistics. These scenarios include assumptions such as possible decreases of used car prices, concentration mix of vehicles and other local factors.
Current residual value embedded in the contract is compared with the expected market value on a car-by-car basis.
In accordance with IAS\u00a08, a residual value is treated as an accounting estimate. Revision of the expected residual values may result in depreciation adjustments.
\u201cLeasing costs \u2013 depreciation\u201d includes depreciation of vehicles which is calculated based on contractual residual values. Any impacts from the revision of residual values are recorded in the \u201cDepreciation costs adjustments\u201d in \u201cUsed Car Sales result and depreciation adjustments\u201d. For further detail see Note\u00a03.1 Basis of preparation.
In determining whether goodwill is impaired requires an estimation of the value in use of the groups of cash generating units to which the goodwill assets have been allocated. The key assumptions calculating the value in use are those regarding discount rates, growth rates and other expected changes in cash flows. The estimates and assumptions used are disclosed in Note\u00a016 Goodwill of these consolidated financial statements.
The Group tests annually whether goodwill has suffered any impairment, in accordance with the accounting policy stated presented in Note\u00a03.4.6 of these consolidated financial statements. The recoverable amounts of cash-generating units have been determined based on value-in-use calculations. These calculations require the use of estimates. The Group uses a five-year business plan for each of the group of CGUs identified. The business plans used incorporated assumptions relevant to the current economic climate such as fleet growth, used car market and credit risk.
For goodwill, sensitivity tests are carried out to measure the impact on each group of CGU\u2019s recoverable value based on certain assumptions, refer to Note\u00a016 Goodwill.
In the annual assessment, on a country level, of whether there is any indication that assets may be impaired, the Group considers both external as well as internal sources of information. If such indication for impairment exists, an analysis is performed to assess whether the carrying value of the asset or cash generating unit under an operating lease exceeds the recoverable amount, being the higher of the fair value less costs to sell and the value in use. The value in use is determined at the present value of the future cash flows expected to be derived from the object or cash generating unit. The management closely monitors residual values, which are reviewed internally at least each financial year, due to it being an important input in determining value in use. The original residual values within internal systems will be compared to the revised residual values expected at contract termination, following a review. The results of this exercise will be used to assess the level of exposure, reserves held and potential impairment required. To prevent impairment on residual values, each country completes a minimum of one annual review of pricing under the supervision of the Group to ensure that assumptions used in pricing reflect expected future market conditions, thus ensuring residual values are predicted with a reasonable degree of accuracy and on a consistent basis going forward. In 2024, there was no indication that an impairment exists.
Further details are provided in Note\u00a013 Rental fleet.
", "dimensions": { "concept": "ifrs-full:DisclosureOfImpairmentOfAssetsExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_7d776d09-b25d-4b75-817a-9700b3b1bac5": { "value": "Assets that have an indefinite useful life \u2013 for example, goodwill or some intangible assets \u2013 are not subject to amortisation and are tested annually for impairment. Assets that are subject to amortisation are reviewed for impairment when there is an indication that the asset may be impaired. An impairment loss is recognised for the amount by which the asset\u2019s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset\u2019s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). Non-financial assets other than goodwill, that suffered impairment, are reviewed for possible reversal of the impairment at each reporting date.
Further details of Rental fleet impairment, refer to Note\u00a04.3 \u201cImpairment of Rental fleet\u201d.
The basis for the depreciation of an asset underlying an operating lease contract and rental contracts is the investment value at cost less the estimated residual value as included in the contract, in combination with the estimated contract duration. A change in the estimated residual value and/or contract duration leads to a change in depreciation that has an effect in the current period and/or in subsequent periods. Statistical models and calculations (regression analysis) in combination with forward-looking market expectations are used to calculate a vehicle\u2019s future value as accurately as possible.
Residual values of the current running fleet are reviewed at least yearly (twice a year for the entities with more than 10,000 vehicles, one in each semester). It is performed at a local country level through a revaluation process which is reviewed and approved at Group level. The local analysts also include additional scenarios in the calculation to take into account elements that are not captured by the statistics. These scenarios include assumptions such as possible decreases of used car prices, concentration mix of vehicles and other local factors.
Current residual value embedded in the contract is compared with the expected market value on a car-by-car basis.
In accordance with IAS\u00a08, a residual value is treated as an accounting estimate. Revision of the expected residual values may result in depreciation adjustments.
\u201cLeasing costs \u2013 depreciation\u201d includes depreciation of vehicles which is calculated based on contractual residual values. Any impacts from the revision of residual values are recorded in the \u201cDepreciation costs adjustments\u201d in \u201cUsed Car Sales result and depreciation adjustments\u201d. For further detail see Note\u00a03.1 Basis of preparation.
In determining whether goodwill is impaired requires an estimation of the value in use of the groups of cash generating units to which the goodwill assets have been allocated. The key assumptions calculating the value in use are those regarding discount rates, growth rates and other expected changes in cash flows. The estimates and assumptions used are disclosed in Note\u00a016 Goodwill of these consolidated financial statements.
The Group tests annually whether goodwill has suffered any impairment, in accordance with the accounting policy stated presented in Note\u00a03.4.6 of these consolidated financial statements. The recoverable amounts of cash-generating units have been determined based on value-in-use calculations. These calculations require the use of estimates. The Group uses a five-year business plan for each of the group of CGUs identified. The business plans used incorporated assumptions relevant to the current economic climate such as fleet growth, used car market and credit risk.
For goodwill, sensitivity tests are carried out to measure the impact on each group of CGU\u2019s recoverable value based on certain assumptions, refer to Note\u00a016 Goodwill.
In the annual assessment, on a country level, of whether there is any indication that assets may be impaired, the Group considers both external as well as internal sources of information. If such indication for impairment exists, an analysis is performed to assess whether the carrying value of the asset or cash generating unit under an operating lease exceeds the recoverable amount, being the higher of the fair value less costs to sell and the value in use. The value in use is determined at the present value of the future cash flows expected to be derived from the object or cash generating unit. The management closely monitors residual values, which are reviewed internally at least each financial year, due to it being an important input in determining value in use. The original residual values within internal systems will be compared to the revised residual values expected at contract termination, following a review. The results of this exercise will be used to assess the level of exposure, reserves held and potential impairment required. To prevent impairment on residual values, each country completes a minimum of one annual review of pricing under the supervision of the Group to ensure that assumptions used in pricing reflect expected future market conditions, thus ensuring residual values are predicted with a reasonable degree of accuracy and on a consistent basis going forward. In 2024, there was no indication that an impairment exists.
Further details are provided in Note\u00a013 Rental fleet.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfNonfinancialAssetsExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_3e76a850-7e24-4630-83f6-e80d6a2df78b": { "value": "The Group classifies non-current assets and disposal groups as held for sale if their carrying amounts will be recovered principally through a sale transaction rather than through continued use. Non-current assets and disposal groups classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell. Costs to sell are the incremental costs directly attributable to the disposal of an asset (disposal group), excluding finance costs and income tax expense.
The criteria for held for sale classification is regarded as met only when the sale is highly probable and the asset or disposal groups is available for immediate sale in its present condition. Actions required to complete the sale should indicate that it is unlikely that significant changes to the sale will be made or that the decision to sell will be withdrawn. Management must be committed to the plan to sell the asset and the sale expected to be completed within one year from the date of the classification.
Property, plant and equipment and intangible assets are not depreciated or amortised once classified as held for sale.
Assets and liabilities classified as held for sale are presented separately as current items in the consolidated balance sheet.
A disposal group qualifies as discontinued operation if it is a component of an entity that either has been disposed of, or is classified as held for sale, and:
The results of discontinued operations are presented separately in the income statement.
Additional disclosures relating to the Group\u2019s Discontinued Operations are provided in Note\u00a07.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleAndDiscontinuedOperationsExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_d9c80714-49d9-4812-ac4c-cdc83a9aa102": { "value": "The Group classifies non-current assets and disposal groups as held for sale if their carrying amounts will be recovered principally through a sale transaction rather than through continued use. Non-current assets and disposal groups classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell. Costs to sell are the incremental costs directly attributable to the disposal of an asset (disposal group), excluding finance costs and income tax expense.
The criteria for held for sale classification is regarded as met only when the sale is highly probable and the asset or disposal groups is available for immediate sale in its present condition. Actions required to complete the sale should indicate that it is unlikely that significant changes to the sale will be made or that the decision to sell will be withdrawn. Management must be committed to the plan to sell the asset and the sale expected to be completed within one year from the date of the classification.
Property, plant and equipment and intangible assets are not depreciated or amortised once classified as held for sale.
Assets and liabilities classified as held for sale are presented separately as current items in the consolidated balance sheet.
A disposal group qualifies as discontinued operation if it is a component of an entity that either has been disposed of, or is classified as held for sale, and:
The results of discontinued operations are presented separately in the income statement.
Additional disclosures relating to the Group\u2019s Discontinued Operations are provided in Note\u00a07.
\u00a0
The Group classifies non-current assets and disposal groups as held for sale if their carrying amounts will be recovered principally through a sale transaction rather than through continued use. Non-current assets and disposal groups classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell. Costs to sell are the incremental costs directly attributable to the disposal of an asset (disposal group), excluding finance costs and income tax expense.
The criteria for held for sale classification is regarded as met only when the sale is highly probable and the asset or disposal groups is available for immediate sale in its present condition. Actions required to complete the sale should indicate that it is unlikely that significant changes to the sale will be made or that the decision to sell will be withdrawn. Management must be committed to the plan to sell the asset and the sale expected to be completed within one year from the date of the classification.
Property, plant and equipment and intangible assets are not depreciated or amortised once classified as held for sale.
Assets and liabilities classified as held for sale are presented separately as current items in the consolidated balance sheet.
A disposal group qualifies as discontinued operation if it is a component of an entity that either has been disposed of, or is classified as held for sale, and:
The results of discontinued operations are presented separately in the income statement.
Additional disclosures relating to the Group\u2019s Discontinued Operations are provided in Note\u00a07.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDiscontinuedOperationsExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_140f57e2-7779-4389-b1c3-d19fe59a0864": { "value": "The Group classifies non-current assets and disposal groups as held for sale if their carrying amounts will be recovered principally through a sale transaction rather than through continued use. Non-current assets and disposal groups classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell. Costs to sell are the incremental costs directly attributable to the disposal of an asset (disposal group), excluding finance costs and income tax expense.
The criteria for held for sale classification is regarded as met only when the sale is highly probable and the asset or disposal groups is available for immediate sale in its present condition. Actions required to complete the sale should indicate that it is unlikely that significant changes to the sale will be made or that the decision to sell will be withdrawn. Management must be committed to the plan to sell the asset and the sale expected to be completed within one year from the date of the classification.
Property, plant and equipment and intangible assets are not depreciated or amortised once classified as held for sale.
Assets and liabilities classified as held for sale are presented separately as current items in the consolidated balance sheet.
A disposal group qualifies as discontinued operation if it is a component of an entity that either has been disposed of, or is classified as held for sale, and:
The results of discontinued operations are presented separately in the income statement.
Additional disclosures relating to the Group\u2019s Discontinued Operations are provided in Note\u00a07.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_234ad830-b5bd-4c87-ba9b-7336a5e63831": { "value": "The Group classifies its financial assets in the following measurement categories:
The classification depends on the entity\u2019s business model for managing the financial assets and the contractual terms of the cash flows. For assets measured at fair value, gains and losses will either be recorded in consolidated income statement or Other Comprehensive Income (OCI). For investments in equity instruments that are not held for trading, this will depend on whether the Group has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income (FVOCI). The derivative financial instruments will be classified as subsequently measured at fair value through profit or loss.
The Group has not elected to irrevocably designate any financial liability for FVTPL so all financial liabilities are measured at amortised cost unless they are held for trading, in which case the financial liability will be at FVTPL. Financial liabilities at FVTPL currently only include derivative financial instruments in the Group\u2019s financial statements (refer to derivatives policy and Note\u00a03.4.10).
Regular way purchases and sales of financial assets are recognised on the balance sheet:
A financial liability is recognised when the Group becomes party to a contractual obligation to deliver cash or another financial instrument to another entity.
Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership. Financial liabilities are derecognised if the Group\u2019s obligations specified in the contract expire or are discharged or cancelled.
Financial assets and liabilities are offset, and the net amount is presented in the balance sheet when the Group has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and liability simultaneously. Income and expenses are presented on a net basis only when permitted by IFRS.
\u00a0
At initial recognition, the Group measures a financial asset or financial liability at its fair value plus or less, in the case of a financial asset not at fair value through profit or loss (FVPL), transaction costs that are directly attributable to the acquisition of the financial asset or financial liability. Transaction costs of financial instruments carried at FVTPL are expensed in the consolidated income statement.
Subsequent measurement of debt instruments depends on the Group\u2019s business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the Group classifies its debt instruments:
The Group subsequently measures all equity investments at fair value. Where the Group\u2019s management has elected to present fair value gains and losses on equity investments in OCI, there is no subsequent reclassification of fair value gains and losses to the income statement following the derecognition of the investment. Dividends from such investments continue to be recognised in the income statement as other income when the Group\u2019s right to receive payments is established.
Changes in the fair value of financial assets at FVPL are recognised in \u201cother income/(expenses)\u201d in the income statement as applicable.
\u00a0
Borrowings and other financial liabilities, including debt securities issued and other borrowings, are initially measured at fair value, net of transaction costs. Borrowings and other financial liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis. The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period. Transaction costs are included in amortised cost using the effective interest method.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the effective interest rate (EIR). The EIR amortisation is included as finance costs in the income. For more information, refer to Note\u00a029 Borrowings from financial institutions, bonds and notes issued.
\u00a0\u00a0
The Group measures financial instruments, such as derivatives, at fair value at each balance sheet date. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:
The principal or the most advantageous market must be accessible to the Group.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data is available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level of input that is significant to the fair value measurement as a whole.
The fair value of assets and liabilities is presented according to a fair value hierarchy that reflects the level of observability of the data used to make the valuations. The fair value hierarchy consists of the following levels:
For assets and liabilities that are recognised in the financial statements on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level of input that is significant to the fair value measurement as a whole) at the end of each reporting period.
In order to hedge its exposure to foreign exchange and interest rate, the Group enters into forward, option and swap contracts. None of these contracts meet the own use exemption in IFRS\u00a09 and are accounted for as derivatives. Derivatives are financial instruments, of which the value changes in response to underlying variables. Derivative instruments are used as part of the overall strategy to manage exposure to market risks primarily associated with fluctuations in interest rates and foreign exchange rates through interest rate and currency swaps respectively. As a matter of policy, derivatives are not used for speculative purposes. The Group documents at the inception of the transaction the relationship between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedging transactions. The Group also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items.
Derivatives are initially recognised at fair value on the date a derivative contract is entered into (trade date) and are subsequently re-measured at their fair value. The method of recognising the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged. The fair value of cross currency and interest rate swaps is the estimated amount that the Group would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The fair values of not-actively traded instruments are calculated using a generally accepted discounted cash flow method, while considering relevant market observable data such as quoted forward prices and interest rates. As a result of having collateral agreements in place for certain of its derivative counterparts, the requirement to reflect other observable market inputs such as CVA, DVA and FVA is eliminated for discounting purposes. The fair values of various derivative instruments used for hedging purposes are disclosed in Note\u00a026. Movements on the hedging reserve in other comprehensive income are shown in consolidated statement of changes in equity. The fair value of a hedging derivative is classified as a non-current asset or liability when the remaining hedged item is more than 12\u00a0months and as a current asset or liability when the remaining maturity of the hedged item is less than 12\u00a0months.
Changes in the fair value of derivative financial instruments that are designated and effective as hedges of future cash flows (cash flow hedges) are recognised directly in equity through Other Comprehensive Income. The gain or loss relating to the ineffective portion is recognised immediately in the income statement within \u201cunrealised gains/losses on financial instruments\u201d. If the cash flow hedge of a firm commitment or future transaction results in the recognition of a non-financial asset or liability, then, at the time the asset or liability is recognised, the associated gains or losses on the derivative that had previously been recognised in equity are included in the initial measurement of the asset or liability. For hedges that do not result in the recognition of a non-financial asset or liability, including the effective portion of interest rate swaps hedging variable rate borrowings, amounts deferred in equity are recognised in the income statement in the same period in which the hedged item affects profit or loss.
The Group only applies fair value hedge accounting for hedging fixed interest risk on borrowings. For an effective hedge of an exposure to changes in fair value, the hedged item is adjusted for changes in fair value attributable to the risk being hedged. The corresponding entry and gains or losses arising from remeasuring the associated derivative are recognised in the income statement within \u201cunrealised gains/losses on financial instruments\u201d. Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the hedged item and hedging instrument. The Group\u2019s material hedging instruments are interest rate swaps and cross currency swaps that have similar critical terms to the related debt instruments, such as payment dates, maturities and notional amount. As all critical terms matched during the year, there was no material hedge ineffectiveness. The Group also uses cross currency swaps to manage foreign exchange risk associated with borrowings denominated in foreign currencies. Where not designated in an accounting hedge there is a natural offset against foreign exchange movements on associated borrowings.
Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, exercised, revoked, or no longer qualifies for hedge accounting. At that time, any cumulative gain or loss on the hedging instrument recognised in equity is retained until the forecast transaction occurs. If a hedge transaction is no longer expected to occur, the net cumulative gain or loss previously recognised in equity is recycled to the income statement for the period. Changes in the fair value of any derivative instruments that are not designated in a hedge relationship are recognised immediately in the income statement within \u201cUnrealised gains/(losses) on financial instruments\u201d.
Derivatives embedded in other financial instruments or non-financial host contracts (other than financial assets in the scope of IFRS\u00a09) are treated as separate derivatives when their risks and characteristics are not closely related to those of their host contracts and the host contracts themselves are not carried at fair value with unrealised gains or losses reported in the income statement. Derivatives embedded in contracts which are financial assets in the scope of IFRS\u00a09 are not separated and the whole contract is accounted for at either amortised cost or fair value.
The types of risks that the Group is exposed to and derivatives used to hedge these risks can be found in Note\u00a05.1 Financial risk factors and Note\u00a019 Derivative financial instruments.
An expected credit loss (ECL) provision is applied to all receivables from customers that are measured at amortised cost with the exception of those receivables deemed to be out of scope. The Group have applied this scope exemption when the receivable meets the low credit risk exemption criteria. The Group has applied this to receivables on used car sales and insurance receivables, where there is zero or almost no history of credit risk or the amounts due are from financial institutions with an investment grade credit rating.
For the other receivables from customers former LeasePlan entities have aligned with existing ALD policies as of May\u00a02024. Overall, the Group segments the receivables from customers into sound and doubtful receivables that includes receivables that have met the definition of default. For sound receivables the Group applies a simplified approach in calculating ECLs from initial recognition of the receivable, which means the Group does not track changes in significant increase in credit risk but instead recognises a loss allowance based on lifetime ECLs at each reporting date.
The Group has established a provision matrix for the sound receivables that is based on its historical credit loss experience by ageing categories, adjusted for forward-looking factors specific to the debtors and the economic environment when the impact of those factors is material to the financial statements. To establish the forward-looking element of IFRS\u00a09 provision, the Group uses macroeconomic data and analysis through local uplifts to probability of default and loss given default rates.
Since obtaining the financial holding status, the Group has aligned its definition of default to the ECB Regulatory Capital CRR Article\u00a0178 definition of default in 2023. This change applies to historic ALD entities only as LeasePlan entities were already aligned with the Article\u00a0178 definition of default due to holding a banking licence prior to the acquisition. For purposes of assessing, recognising and reporting defaults, a customer shall be considered to be in default when either one or both of the following events occur:
The application of the above guidance is only to the extent of identifying the customers that are in default. There is no change in the method of determining the value of impairment. Where the customer is in default, the whole of the customer balance is classified as doubtful, and impairment is based upon the full outstanding amount, except where we have adjudged there are mitigating circumstances.\u00a0
Alignment of LeasePlan entities with the Ayvens methodology increased the IFRS 9 provisions by EUR\u00a017.5\u00a0million as part of the purchase price allocation. Main driver of that increase is the provisioning of 100% for receivables from customers past due more than 90 consecutive days on any material credit obligation. The subsequent increase (EUR\u00a05.9\u00a0million) was accounted for as cost of risk in Q1 2024.
Expected credit losses are reassessed at each reporting date and reflect all reasonable information that is available at the reporting date. Judgement is required from management for applying appropriate models and setting assumptions for the measurement of ECL. The methodology, assumptions and data, including any forecasts of future economic conditions, macroeconomic impacts and the Group\u2019s provision matrix are reviewed regularly by management in determining the expected credit losses and the write-off of receivables. Doubtful debts should be written off as soon as the definitive loss is known.
Where the Group have acquired credit-impaired receivables from customers as part of a business combination, the gross receivable is initial recognised at fair value with no carrying impairment allowance. The Group only recognises the cumulative changes in lifetime expected credit losses since initial recognition as a loss allowance for originated purchased credit-impaired financial assets in the income statement.
Disputes often arise in the collection of lease receivables and tend to range from issues relating to the performance of various services under the contract to the amount of end-of-contract billing. A dispute has no impact on the solvency of the customer or the risk of default, and therefore is not a credit loss. As such these amounts are removed from sound receivables and a provision is applied based on our provisions accounting policy. For presentation purposes the provision is netted against the \u201cReceivables from customers\u201d balance sheet line item.
Details about the assumptions and estimation techniques used in measuring ECL for finance lease receivables and trade receivables from operating lease contracts are provided in the section Credit risk management and disclosure on the impairment provided in Note\u00a022 Lease receivables from customers.
Details about the methodology in measuring ECL for finance lease receivables and trade receivables from operating lease contracts are provided in Note\u00a022 Lease receivables from customers. Expected credit losses are reassessed at each reporting date and reflect all reasonable information that is available at the reporting date. Judgement is required from management for applying appropriate models and setting assumptions for the measurement of ECL. The methodology, assumptions and data, including any forecasts of future economic conditions, macroeconomic impacts and the Group\u2019s provision matrix are reviewed regularly by management in determining the expected credit losses and the write-off of receivables.
Credit risk refers to the risk of losses resulting from the inability of Group customers, issuers or other counterparties to meet their financial commitments. Credit risk may be aggravated by concentration risk, resulting from a high exposure to a given risk or to one or more counterparties, or to one or more groups of similar counterparties. In addition to the risk of lessees not making payments for the leased vehicles, the Group is exposed to credit risk originating from its banking and treasury activities, which includes deposits and investments placed with financial institutions and hedging instruments, such as derivatives, as well as from its remarketing and reinsurance activities. The Group\u2019s maximum exposure to credit risk primarily arises from these financial assets and is as follows:
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Cash and cash equivalents | 5,023.0 | 3,997.0 |
Lease receivables from clients | 4,083.6 | 4,530.7 |
Other receivables, prepayments and contract assets\u00a0(1) | 1,373.5 | 1,217.0 |
Investment in debt and equity securities\u00a0(1) | 377.8 | 118.9 |
Derivative financial assets | 133.5 | 383.3 |
Total exposure | 10,991.4 | 10,246.8 |
|
\u00a0
The Group\u2019s definition of default for the purpose of determining ECLs, and for internal credit risk management purposes aligns to the ECB Regulatory Capital CRR Article\u00a0178 definition of default, to maintain a consistent approach with IFRS\u00a09 and associated regulatory guidance.
The Group has issued policies and standards which regulate the governance of the local credit risk management organisation. All Group entities must comply with risk procedures issued centrally which define the way credit requests have to be studied and validated, as well as the roles and responsibilities of all staff involved in the credit assessment process. Each subsidiary has a specific credit authority approved by the Group General Management and the Risk Department of Societe Generale Group, that is determined by the size of the fleet, the maturity of the subsidiary and the type of customer concerned (corporate, retail, financial institution, etc.). Within its credit delegation, each subsidiary can decide directly on its counterparty risk and concentration risk. Above this threshold, credit acceptance is made at central level jointly with/or at the Risk Department of Societe Generale.
Regular Risk Committees are held by the Group in order to review all potential risk issues and to ensure the credit risk procedures are properly applied. All standard risk indicators (arrears/default/Cost of risk) are also monitored centrally. However, the primary responsibility for debt collection remains with the Group subsidiaries that have dedicated teams in charge of recovering unpaid invoices in compliance with local regulations and market practices. These local processes are required to be compliant with the corporate instructions and guidelines. Central monitoring of all ageing balances is performed on a monthly basis as part of the regular risk reviews, and action plans are set up whenever necessary. Each local entity is required to maintain a watch list, which is based on credit rating and other available information. These lists are reviewed in regular meetings by the Entity Risk Committees. A qualitative analysis of total credit exposures, defaults and losses is reported on a monthly basis and discussed at the Entity Risk Committee locally (frequency depending on the size of the entity) and quarterly in the Credit Risk Committee centrally.
The Group limits credit risk on liquid funds and derivative financial instruments through diversification of exposures with a range of financial institutions. Counterparty limits are set for each financial institution with reference to credit ratings assigned by Standard & Poor\u2019s and Moody\u2019s. Limits are set on a legal entity basis and are included in the Group\u2019s risk appetite and approved on a yearly basis. The Group\u2019s treasury risk management monitors the exposures, against the approved limits, on an ongoing basis.
The Group applies the IFRS\u00a09 simplified approach for measuring expected credit losses which uses a lifetime expected loss allowance for all sound trade and lease receivables. In 2024 the Group has aligned the methodologies used to calculate the expected credit loss (ECL) between the legacy ALD entities and the legacy LeasePlan entities.
Where trade receivables and finance lease receivables are not in default, the Group does not track changes in credit risk, but instead recognises a loss allowance based on expected lifetime losses from initial recognition of the receivables. These losses are measured based on a provision matrix for receivables associated with sound customers. Probability of Default (PD) rates are based on observed default rates over the life of the receivables (the average contract length in each entity). Specific PD rates are calculated for each entity and each customer type. This process results in PD rates for each age of past-due receivables. The PD rates are applied to the aged receivables of the reporting period to arrive at a total provision. The final impairment allowance is also adjusted to consider Loss Given Default (LGD) specific to the entity and the historical loss rates are adjusted to reflect current and forward-looking information on specific local economies affecting the ability of the customers to settle the receivables. When in default, the receivables from leases with customers are provisioned at 100%.
Expected credit losses are reassessed at each reporting date and reflect all reasonable information that is available at the reporting date and management consider the current level of provisions to be adequate. The Group will continue to monitor the provision parameters, including the relevance of the local uplift factors, according to the macroeconomic situation. Further information on the expected loss provision on receivables from leases is included in Note\u00a022. Given the diverse nature of the Group\u2019s operations (both in relation to customer type and geographically), the Group does not have significant concentration of credit risk with respect to lease receivables from clients, with exposure spread over a large number of customers.
For other financial assets listed above where there is zero or almost no history of credit risk or the amounts due are from financial institutions with an investment grade credit rating, no provision has been applied. For all other counterparties the ECL is based on the General Approach, where the expected credit loss model is calculated by multiplying the PD, LGD and the Exposure at Default (EAD), but the level of provisioning is dependent on the credit deterioration of the asset in line with IFRS\u00a09. The provisioning on other receivables is limited.
The Group accepts and offers lease contracts to clients at both fixed and floating interest rates, for various durations and in various currencies. Most lease contracts are on a fixed interest rate basis. Interest rate risk within the Group is managed separately for:
The main interest rate risk principle is to match the interest rate risk profile of the lease contract portfolio with a corresponding interest rate funding profile to minimise the interest rate risk as measured by interest rate gap reports per Group entity. Group entities carry interest-bearing assets on their balance sheet, funded by interest-bearing liabilities (loans and other indebtedness).
The Group central treasury monitors the Group\u2019s interest rate risk exposure and instructs subsidiaries to implement adequate hedging operations based on a monthly report measuring interest risk exposure. Each entity and the Group as a whole are subject to sensitivity thresholds and limits validated by the Asset and Liability Committee (ALCO). The Group structural risks are discussed on a quarterly basis during ALCO meetings.
For the Group, the sensitivity metric used is the variation in the net present value of the future residual fixed-rate positions (surplus or deficit) for non-stressed shocks of +10\u00a0bps and -10\u00a0bps in the yield curve. The table below reflects the balance sheet exposure of the Group\u2019s financial liabilities to interest rate risk:
\u00a0
NPV sensitivity impact (in EUR million)\u00a0(1) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
+10\u00a0bps | (2.7) | 0.7 |
-10\u00a0bps | 2.7 | (0.8) |
|
\u00a0
For a +10bps scenario, a positive NPV sensitivity represents an excess of fixed rate resources while a negative NPV sensitivity represents a deficit of fixed rate resources. The variation between 2023 and 2024 is mainly explained by the implementation of a new equity convention(1)\u00a0in compliance with Societe Generale Group standards. At the end of 2024, the NPV sensitivity is negative but within the limits. The position is mainly driven by the hedging of the order banks. See Note\u00a029 for further details.
The Group\u2019s functional currency and the reporting currency for its consolidated financial statements is the euro. However, because of its presence in a significant number of countries outside the Eurozone, the Group has substantial assets, liabilities, revenues and costs denominated in currencies other than the euro. The global nature of the Group\u2019s operations therefore exposes the Group to exchange rate volatility as a result of potential mismatches between the currencies in which assets and liabilities are denominated, and as a result of the translation effect on its reported earnings, cash flow and financial condition. The Group is exposed to transactional foreign exchange rate risk when a subsidiary enters into a transaction in a currency other than the subsidiary\u2019s functional currency. The Group seeks to manage its transactional foreign exchange rate risk by attempting to limit the Group\u2019s exposure to the effects of fluctuations in currencies on its statement of financial condition and cash flows through funding its debt directly or through derivatives in the currency in which assets are originated and allocating capital in the currencies in which assets are denominated.
In short, the Group has the following risk management approach regarding currency risk:
Based on the currency risk management approach the Group\u2019s capital adequacy ratio is minimally exposed to changes in the exchange rates it is exposed to. In order to monitor and manage its currency risk exposure, the Group has defined triggers and limits on its structural risk exposure, in accordance with EBA Guidelines.
The Group quantifies its exposure to structural exchange rate risks for each subsidiary by analysing all assets and liabilities arising from commercial operations and proprietary transactions. The risk sensitivity is measured by quantifying the impact of a variation of 10% of the exchange rate (hard currencies against local currency) and a threshold is defined for each subsidiary.
\u00a0
The following table shows the net currency position of foreign currencies which the Group is most exposed to as at 31\u00a0December 2024, and with all other variables remaining constant, the impact if the Euro strengthened or weakened by 10% against these foreign currencies positions held by the Group:
Income statement impact (in EUR million) | 2024 Net exposure | 2024 +10% | 2024 -10% |
|---|---|---|---|
Pound Sterling (GBP) | 561.4 | (51.0) | 62.4 |
Turkish Lira (TRY) | 712.0 | (64.7) | 79.1 |
Brazilian Real (BRL) | 184.1 | (16.7) | 20.5 |
Czech Koruna (CZK) | 110.3 | (10.0) | 12.3 |
Swedish Krona (SEK) | 126.2 | (11.5) | 14.0 |
Norwegian Krone (NOK) | 161.8 | (14.7) | 18.0 |
Danish Krone (DKK) | 201.8 | (18.3) | 22.4 |
Other\u00a0(1) | 631.4 | (51.6) | 63.1 |
|
\u00a0
Income statement impact (in EUR million) | 2023 Net exposure | 2023 +10% | 2023 -10% |
|---|---|---|---|
Pound Sterling (GBP) | 549.4 | (49.9) | 61.0 |
Turkish Lira (TRY) | 579.3 | (52.7) | 64.4 |
Brazilian Real (BRL) | 162.1 | (14.7) | 18.0 |
Czech Koruna (CZK) | 131.1 | (11.9) | 14.6 |
Swedish Krona (SEK) | 114.4 | (10.4) | 12.7 |
Norwegian Krone (NOK) | 114.0 | (10.4) | 12.7 |
Danish Krone (DKK) | 113.2 | (10.3) | 12.6 |
Other\u00a0(1) | 597.9 | (48.9) | 59.7 |
|
The Group is exposed to liquidity risk which is the risk of not being able to meet cash flow requirements when they fall due. A structural liquidity position is defined as resulting from the maturities of all balance sheet or off-balance sheet outstanding positions according to their liquidity profile.
The liquidity risk appetite and tolerance levels are based on the following key principles:
Note\u00a029 details the maturity of the Group borrowing and debt issued.
As a precaution to the risk of not having continued access to financial markets for funding, the Group maintains a liquidity buffer. This buffer includes unencumbered cash and committed (standby) credit facilities to reduce the Group\u2019s liquidity risk. The liquidity buffer as per 31\u00a0December is specified as follows:
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Unencumbered cash at banks | 119.7 | 146.1 |
Unencumbered cash at Central bank | 4,335.6 | 3,535.6 |
Total on balance liquidity buffer | 4,455.3 | 3,681.6 |
Committed undrawn facilities | 1,750.0 | 1,951.0 |
Total | 6,205.3 | 5,632.6 |
\u00a0
The Group holds total revolving credit facilities with a consortium of banks as at 31\u00a0December 2024, of which EUR\u00a01.75\u00a0billion is undrawn (31\u00a0December 2023: EUR\u00a01.95\u00a0billion). In addition, the Group holds a revolving credit facility with Societe Generale of which EUR\u00a03.8\u00a0billion was undrawn per 31\u00a0December 2024.
Ayvens\u00a0SA is a Financial Holding Company regulated by the European Central Bank (ECB). Ayvens Bank\u00a0NV, a subsidiary 100% owned by LeasePlan Group BV, which is 100% owned by Ayvens\u00a0SA is regulated as a financial institution. The European Central Bank sets out minimum liquidity level requirements on Ayvens Bank\u00a0NV demanding that available liquidity exceeds required liquidity at all times as well as a Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) above 100%. These minimum liquidity requirements are complied with.
Derivatives are used to mitigate the interest rate and currency exposures associated with the funding of lease contracts. Interest rate swaps cover interest rate positions between lease contracts and borrowed funds and currency interest rate swaps cover currency exposures between lease contracts and borrowed funds. The extent of exposure management is in line with internal risk appetite and limits determined by the Group risk management and reviewed on a regular basis. The Group uses a mixture of one-to-one relationships (micro hedging), as well as many-to-many macro hedging (macro hedging).
(in EUR million) | Notes | Year ended 31\u00a0December, | |
|---|---|---|---|
2024 | 2023 | ||
Impairment | \u00a0 | (298.7) | (168.2) |
Losses | \u00a0 | (6.7) | (0.4) |
Reversal of impairment\u00a0(1) | \u00a0 | 176.8 | 97.9 |
Impairment charges on receivables | \u00a0 | (128.5) | (70.7) |
|
\u00a0
The total variance on impairment charges on receivables is mainly driven by the charges of former LeasePlan companies which are now fully reflected for 12 months, compared to 9 months in 2023. Additionally, the variance is influenced by the alignment of IFRS 9 ECL provisions methodology to Ayvens method. The variance in the underlying impairment charges and reversals is driven by a stricter application of booking charges and reversals, following the Ayvens methodology by the former LeasePlan companies, that was not implemented in the previous year.
Derivative instruments that are measured at fair value on a recurring basis are included in the caption \u201cDerivative financial instruments\u201d in the consolidated balance sheet and are made up as follows:
(in EUR million) | Year ended 31\u00a0December 2024 | Year ended 31\u00a0December 2023 | ||||
|---|---|---|---|---|---|---|
Notional amounts | Assets | Liabilities | Notional amounts | Assets | Liabilities | |
Cash flow hedges | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |
Interest rate swaps | 3,892.7 | 9.4 | 17.8 | 2,999.4 | 24.1 | 11.5 |
Foreign Exchange swaps | 492.6 | 44.8 | 13.0 | 519.4 | 2.7 | 91.9 |
Total Derivatives in hedge | 4,385.3 | 54.3 | 30.9 | 3,518.8 | 26.7 | 103.4 |
Interest rate swaps | 18,499.6 | 77.0 | 210.3 | 31,332.8 | 235.3 | 392.1 |
Foreign exchange swaps | 609.5 | 2.3 | 18.2 | 4,042.9 | 121.2 | 150.3 |
Total Derivatives not in hedge | 19,109.0 | 79.2 | 228.5 | 35,375.7 | 356.5 | 542.4 |
Total | 23,494.3 | 133.5 | 259.4 | 38,894.5 | 383.3 | 645.8 |
Less non-current portion: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |
Interest rate swaps\u00a0\u2013 hedged | \u00a0 | 5.1 | 17.8 | \u00a0 | 24.1 | 11.5 |
Foreign exchange swaps\u00a0\u2013 hedged | \u00a0 | 27.1 | 3.2 | \u00a0 | 2.2 | 52.2 |
Interest rate swaps\u00a0\u2013 not hedged | \u00a0 | 43.7 | 181.9 | \u00a0 | 157.2 | 353.4 |
Foreign exchange swaps\u00a0\u2013 not hedged | \u00a0 | 2.3 | 0.8 | \u00a0 | 43.1 | 54.6 |
Total non-current portion | \u00a0 | 78.1 | 203.8 | \u00a0 | 226.6 | 471.7 |
Current portion | \u00a0 | 55.4 | 55.5 | \u00a0 | 156.6 | 174.1 |
\u00a0
Upon the acquisition of LeasePlan, fair value hedging was in place (through the use of interest rate swaps) as part of the Treasury risk management policy to mitigate exposure to changes in fair value of recognised liabilities, driven by the impact of the interest rate risk component of debt capital market transactions (publicly issued fixed rate bonds). As part of a periodic review of hedging strategy to comply with risk objectives, the Group decided to revoke these fair value hedge designations on 1\u00a0October 2023. Before de-designation any fair value changes were recognised in the income line item \u201cUnrealised gains/losses on financial instruments and other\u201d and the amortisation of the impact on de-designation, that will be smoothened over the residual lifetime of the debt are included in the same income statement line item, and amounted to EUR\u00a0-127\u00a0million for the year ending 31\u00a0December 2024 (2023: EUR\u00a0-38\u00a0million).
\u00a0
The impact on the income statement of derivatives is summarised below:
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Derivatives not in hedges | 45.5 | (152.0) |
Hedge ineffectiveness\u00a0\u2013 fair value hedges | (127.2) | (35.5) |
\u00a0of which: | \u00a0 | \u00a0 |
\u00a0Hedging instruments fair value movement | \u2212 | 32.7 |
\u00a0Financial liabilities fair value movement | (127.2) | (68.2) |
Hedge ineffectiveness\u00a0\u2013 cash flow hedges | 1.0 | 1.5 |
Unrealised gains/(losses) on derivative financial instruments | (80.6) | (186.0) |
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Investment in debt securities | 405.9 | 329.4 |
Investment in equity securities | 19.4 | 35.0 |
Long-term investments | 125.6 | 223.5 |
Guarantee deposits | 272.8 | 414.5 |
Other | 13.8 | 8.8 |
Total | 837.5 | 1,011.2 |
Current portion | 358.8 | 766.5 |
Non-current portion | 478.8 | 244.7 |
\u00a0
Investment in debt securities includes bonds and notes held at fair value (through profit and loss or other comprehensive income) and bonds and notes held at amortised cost.
Investment in equity securities includes the interest in Constellation Automotive Holdings S.a.r.l. Refer to Note\u00a026 Financial Instruments for more information on the method of valuation and related assumptions. No impairment or expected credit loss has been booked for the period ending 31\u00a0December 2024 and 2023.
Long-term investments are a resource resulting from the policy of the Group and of its main shareholder, Societe Generale, to monitor the Group\u2019s interest rate risk through the matching of assets and liabilities by maturity. Available equity is considered as a long-term resource which needs to be matched with long-term assets (refer to interest rate risks management in financial risk management section above). Equity reinvestments are made in long term amortising deposits within Societe Generale in order to remain within the interest rate sensitivity limit set for each entity (variation in the net present value of the future residual fixed rate positions, surplus or deficit, for a 1% parallel increase in the yield curve). These deposits will roll-out in approximately 2\u00a0years\u2019 time and will not be renewed.
The guarantee deposits mainly include:
This item includes amounts receivable under lease contracts and trade receivables, after deduction of allowances for debtor risks, where necessary.
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Amounts receivable under finance lease contracts | 2,037.4 | 2,285.3 |
Provision for impairment of receivables under finance lease contracts | (22.5) | (21.5) |
of which | \u00a0 | \u00a0 |
provision for doubtful receivables | (8.8) | (6.6) |
provision for sound receivables\u00a0(1) | (13.6) | (14.9) |
Trade receivables | 2,417.9 | 2,545.9 |
Provision for impairment of trade receivables | (328.7) | (258.0) |
of which | \u00a0 | \u00a0 |
provision for doubtful receivables | (291.1) | (232.1) |
provision for sound receivables\u00a0(1) | (37.6) | (26.0) |
Provision for customer disputes | (20.6) | (21.0) |
Total receivables | 4,083.6 | 4,530.7 |
|
\u00a0
The fair value of receivables is equivalent to the carrying value.
The table below presents the analysis of receivables which are in and out of scope of the simplified approach of IFRS\u00a09 for sound customers. The Group considers some specific receivable types as out of scope (see Note\u00a03.4.12).
(in EUR million) | As at 31\u00a0December 2024 | As at 31\u00a0December 2023 | ||||
|---|---|---|---|---|---|---|
In scope | Out of scope | Total | In scope | Out of scope | Total | |
Amounts receivable under finance lease contracts | 2,005.8\u00a0(1) | 31.6\u00a0(2) | 2,037.4 | 2,236.3\u00a0(1) | 49.0\u00a0(2) | 2,285.3 |
Provision for impairment of receivables under finance lease contracts\u00a0(3) | (13.6) | (8.8) | (22.5) | (14.9) | (6.6) | (21.5) |
Trade receivables | 1,471.8 | 946.1\u00a0(2) | 2,417.9 | 1,512.4 | 1,033.5\u00a0(2) | 2,545.9 |
Provision for impairment of trade receivables\u00a0(3) | (37.6) | (291.1) | (328.7) | (26.0) | (232.1) | (258.0) |
Provision for customer disputes | \u2212 | (20.6) | (20.6) | \u2212 | (21.0) | (21.0) |
Total receivables | 3,426.4 | 657.2 | 4,083.6 | 3,707.9 | 822.8 | 4,530.7 |
|
\u00a0
Following the integration of Ayvens and alignment of IFRS\u00a09 calculation methods, the sound receivables and provisions as of 31\u00a0December are now presented on a consolidated basis. No comparable data is available for 2023.
Based on the receivables which are in the IFRS\u00a09 scope, as of 31\u00a0December 2024 the sound receivables amount to EUR\u00a03,477.6\u00a0million (2023: EUR\u00a03,748.7\u00a0million of which 1,483.5\u00a0million for ALD and 2,265.2\u00a0million for LeasePlan). Provisions in scope amounted to EUR\u00a051.2\u00a0million (2023: 40.9\u00a0million of which 25.5\u00a0million for ALD and 15.4\u00a0million for LeasePlan).
The loss allowance for both trade and financial lease sound receivables as of 31\u00a0December 2024 was determined as follows for the Group.
(in EUR million) | Not past due | 0-30\u00a0days past\u00a0due | 31-60\u00a0days past due | 61-90\u00a0days past due | > 90\u00a0days past\u00a0due | Total |
|---|---|---|---|---|---|---|
ECL rate | 1% | 4% | 9% | 7% | 7% | \u00a0 |
Gross carrying amount of receivables in IFRS\u00a09 scope | 3,100.7 | 262.3 | 46.4 | 23.5 | 44.7 | 3,477.6 |
Loss Allowance | (31.6) | (10.2) | (4.1) | (1.7) | (3.6) | (51.2) |
Net carrying amount of receivables in IFRS\u00a09 scope | 3,069.1 | 252.1 | 42.3 | 21.8 | 41.1 | 3,426.4 |
\u00a0
The loss allowance for both trade and finance lease sound receivables as of 31\u00a0December 2023 was determined as follows for ALD entities.
\u00a0
(in EUR million) | Not past due | 0-30\u00a0days past\u00a0due | 31-60\u00a0days past due | 61-90\u00a0days past due | > 90\u00a0days past\u00a0due | Total |
|---|---|---|---|---|---|---|
ECL rate | 1% | 3% | 9% | 7% | 15% | \u00a0 |
Gross carrying amount of receivables in IFRS\u00a09 scope | 1,251.0 | 167.3 | 33.0 | 12.5 | 19.7 | 1,483.5 |
Loss Allowance | (14.3) | (4.5) | (2.8) | (0.9) | (3.0) | (25.5) |
Net carrying amount of receivables in IFRS\u00a09 scope | 1,236.7 | 162.8 | 30.2 | 11.6 | 16.8 | 1,458.0 |
\u00a0
For the LeasePlan entities acquired in 2023, the loss allowance as of 31\u00a0December 2023 was determined as follows for both trade and finance lease sound receivables:
(in EUR million) | As at 31\u00a0December 2023 | ||||
|---|---|---|---|---|---|
Banks | Corporate | Small and Medium Enterprises | Private | Total | |
ECL rate | 0% | 0% | 2% | 1% | \u00a0 |
Gross carrying amount of receivables in IFRS\u00a09 scope | 7.7 | 1,406.0 | 794.0 | 57.7 | 2,265.3 |
Loss Allowance | \u2212 | (2.5) | (12.3) | (0.6) | (15.4) |
Net carrying amount of receivables in IFRS\u00a09 scope | 7.7 | 1,403.5 | 781.6 | 57.1 | 2,249.9 |
\u00a0
The movement in impairment of finance lease receivables is as follows:
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Balance at 1\u00a0January | (21.5) | (11.6) |
Purchased credit impaired receivables\u00a0(1) | \u2212 | (1.3) |
Net Impairment charges\u00a0(2) | (3.9) | 0.2 |
Receivables written off | 3.5 | 2.3 |
Scope changes\u00a0(3) | \u2212 | (10.9) |
Other and currency translation differences | (0.6) | (0.2) |
Balance at 31\u00a0December | (22.5) | (21.5) |
|
The amounts presented in the tables below include loans and finance receivables by Basel\u00a0II portfolio that are not past due and that are past due but not individually impaired.
(in EUR million) | Year ended 31\u00a0December 2024 | |||||
|---|---|---|---|---|---|---|
Loans and receivables to customers | ||||||
Banks | Corporates | Small and medium enterprises | Credit to individuals | Very small companies | Total | |
Amounts not past due | 6.3 | 1,006.5 | 492.7 | 63.1 | 151.1 | 1,719.7 |
Amounts including past due between 1 to 30\u00a0days | 0.3 | 20.3 | 43.1 | 0.6 | 24.9 | 89.2 |
Amounts including past due between 31 to 60\u00a0days | 0.1 | 24.7 | 4.6 | 0.2 | 9.5 | 39.1 |
Amounts including past due between 61 to 90\u00a0days | 0.1 | 3.7 | 2.9 | 0.3 | 4.3 | 11.3 |
Amounts including past due between 91 to 180\u00a0days | \u2212 | 110.5 | 0.9 | \u2212 | 1.1 | 112.5 |
Amounts including past due between 181\u00a0days to 1\u00a0year | \u2212 | 16.4 | 1.7 | \u2212 | 0.7 | 18.8 |
Amounts including past due over 1\u00a0year | 0.1 | 14.8 | \u2212 | \u2212 | 0.3 | 15.2 |
Total | 7.0 | 1,196.9 | 545.8 | 64.1 | 191.9 | 2,005.8 |
\u00a0
(in EUR million) | Year ended 31\u00a0December 2023 | |||||
|---|---|---|---|---|---|---|
Loans and receivables to customers | ||||||
Banks | Corporates | Small and medium enterprises | Credit to individuals | Very small companies | Total | |
Amounts not past due | 8.4 | 1,152.8 | 624.5 | 84.7 | 157.9 | 2,028.2 |
Amounts including past due between 1 to 30\u00a0days | 0.1 | 22.7 | 36.4 | 1.7 | 11.4 | 72.4 |
Amounts including past due between 31 to 60\u00a0days | 0.2 | 8.0 | 11.3 | 0.2 | 2.9 | 22.5 |
Amounts including past due between 61 to 90\u00a0days | \u2212 | 1.6 | 4.8 | 0.1 | 2.5 | 8.9 |
Amounts including past due between 91 to 180\u00a0days | 0.3 | 97.4 | 0.1 | 0.1 | 1.6 | 99.5 |
Amounts including past due between 181\u00a0days to 1\u00a0year | \u2212 | 2.6 | \u2212 | 0.0 | 0.6 | 3.2 |
Amounts including past due over 1\u00a0year | \u2212 | 1.1 | \u2212 | 0.0 | 0.4 | 1.5 |
Total | 9.0 | 1,286.2 | 677.1 | 86.7 | 177.3 | 2,236.3 |
\u00a0
A full description of the impairment policy is contained in the Credit risk measurement section of the Note\u00a05 Financial Risk Management.
\u00a0
The movement in impairment of trade receivables is as follows:
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Balance at 1\u00a0January | (258.0) | (174.6) |
Purchased credit impaired receivables\u00a0(1) | \u2212 | (39.4) |
Net Impairment charges\u00a0(2) | (124.6) | (70.9) |
Receivables written off | 53.7 | 44.6 |
Transfer of disposal groups to assets held for sale | (3.4) | \u2212 |
Scope changes\u00a0(3) | \u2212 | (19.5) |
Other and currency translation differences | 3.8 | 1.9 |
Balance at 31\u00a0December | (328.7) | (258.0) |
|
The maturity analysis is as follows:
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Trade receivables not overdue | 1,714.1 | 2,134.1 |
Past due up to 90\u00a0days | 370.9 | 226.4 |
Past due between 90-180\u00a0days | 81.1 | 27.6 |
Past due over 180\u00a0days | 251.8 | 157.8 |
Total | 2,417.9 | 2,545.9 |
\u00a0
The amounts receivable from customers include finance lease receivables, which can be analysed as follows:
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Less than one year | 599.9 | 614.8 |
1 -2\u00a0years | 460.6 | 523.2 |
2 -3\u00a0years | 302.4 | 403.0 |
3 -4\u00a0years | 191.2 | 211.1 |
4 -5\u00a0years | 70.2 | 88.6 |
More than 5\u00a0years | 32.1 | 34.4 |
Gross investment in finance lease payments | 1,656.4 | 1,875.0 |
Unguaranteed residual value | 566.5 | 635.3 |
Unearned finance income | (185.5) | (225.0) |
Net investment in finance leases | 2,037.4 | 2,285.3 |
\u00a0
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Current | 737.9 | 749.3 |
Non-current | 1,299.5 | 1,535.9 |
Net investment in finance leases | 2,037.4 | 2,285.3 |
\u00a0
A part of the finance lease assets is encumbered (securitised) because of the asset backed securitisation transactions concluded by the Group. The total value of the securitised finance lease assets amounts to EUR\u00a05,179.4\u00a0million (2023: EUR\u00a04,256.2\u00a0million). For further details on the transactions refer to Note\u00a029 of the consolidated financial statements.
In the event of legal proceeding taken against a customer that is in default, the vehicle would be recovered and as such the fair value of that vehicle less costs to recover would be considered collateral and reduce significantly any loss on default.
\u00a0
For financial assets and liabilities which are traded on an active market, such as listed investments or listed debt instruments, fair value is determined by reference to market value. For non-traded financial assets and liabilities, fair value is calculated using discounted cash flows, considered to be reasonable and consistent with those that would be used by a market participant, and based on observable market data where available (for example forward exchange rate or interest rate), unless carrying value is considered to approximate fair value.
Where discounted cash flow models based on management\u2019s assumptions are used, the resulting fair value measurements are considered to be at level\u00a03 in the fair value hierarchy, as defined in IFRS\u00a013 Fair Value Measurement, as they depend to a significant extent on unobservable valuation inputs.
All derivatives that have been designated into hedge relationships have been separately disclosed.
The Company\u2019s financial assets and liabilities are categorised as below. Where the financial instrument does not include fair value information, it is due to the carrying amount being a reasonable approximation of fair value.
\u00a0
As at 31\u00a0December 2024 (in EUR million) | Fair Value | ||||
|---|---|---|---|---|---|
Carrying Value | Level\u00a01 | Level\u00a02 | Level\u00a03 | Total | |
Financial assets measured at FVTPL | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Derivative financial instruments in hedge | 54.3 | \u00a0 | 54.3 | \u00a0 | 54.3 |
Derivative financial instruments not in hedge | 79.2 | \u00a0 | 79.2 | \u00a0 | 79.2 |
Investment in equity securities | 19.4 | \u00a0 | \u00a0 | 19.4 | 19.4 |
Investment in debt securities | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u2212 |
Financial assets measured at FVOCI | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Investment in debt securities | 309.2 | 309.2 | \u00a0 | \u00a0 | 309.2 |
Financial assets measured at amortised cost | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cash and cash equivalents | 5,023.0 | \u00a0 | \u00a0 | \u00a0 | \u2212 |
Investment in debt securities | 96.8 | 97.2 | \u00a0 | \u00a0 | 97.2 |
Other financial instruments | 257.7 | \u00a0 | \u00a0 | \u00a0 | \u2212 |
Lease receivables from customers | 4,083.6 | \u00a0 | 4,083.6 | \u00a0 | 4,083.6 |
Total | 9,923.2 | 406.4 | 4,217.1 | 19.4 | 4,642.9 |
As at 31\u00a0December 2023 (in EUR million) | Fair Value | ||||
|---|---|---|---|---|---|
Carrying Value | Level\u00a01 | Level\u00a02 | Level\u00a03 | Total | |
Financial assets measured at FVTPL | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Derivative financial instruments in hedge | 26.7 | \u00a0 | 26.7 | \u00a0 | 26.7 |
Derivative financial instruments not in hedge | 356.5 | \u00a0 | 356.5 | \u00a0 | 356.5 |
Investment in equity securities | 35.0 | 19.6 | \u00a0 | 15.4 | 35.0 |
Financial assets measured at FVOCI | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Investment in debt securities | 245.5 | 245.5 | \u00a0 | \u00a0 | 245.5 |
Financial assets measured at amortised cost | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cash and cash equivalents | 3,997.0 | \u00a0 | \u00a0 | \u00a0 | \u2212 |
Investment in debt securities | 83.9 | 83.9 | \u00a0 | \u00a0 | 83.9 |
Other financial instruments | 646.8 | \u00a0 | \u00a0 | \u00a0 | \u2212 |
Lease receivables from customers | 4,530.7 | \u00a0 | 4,530.7 | \u2212 | 4,530.7 |
Receivables from credit and other institutions | 3,103.4 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Loans to associates and jointly controlled entities | 41.5 | \u00a0 | 41.5 | \u00a0 | 41.5 |
Total | 13,067.0 | 349.0 | 4,955.5 | 15.4 | 5,319.9 |
\u00a0
As at 31\u00a0December 2024 (in EUR million) | Fair Value | ||||
|---|---|---|---|---|---|
Carrying Value | Level\u00a01 | Level\u00a02 | Level\u00a03 | Total | |
Financial liabilities measured at FVTPL | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Derivative financial instruments in hedge | 30.9 | \u00a0 | 30.9 | \u00a0 | 30.9 |
Derivative financial instruments not in hedge | 228.5 | \u00a0 | 228.5 | \u00a0 | 228.5 |
Financial liabilities measured at amortised cost | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Trade payables | 6,024.5 | \u00a0 | 6,024.5 | \u2212 | 6,024.5 |
Deposits | 13,890.6 | \u00a0 | 13,842.6 | \u00a0 | 13,842.6 |
Borrowings from financial institutions | 23,346.9 | \u00a0 | 23,381.8 | \u2212 | 23,381.8 |
Bonds issued | 17,235.0 | 15,621.0 | 1,712.5 | \u2212 | 17,333.5 |
Total | 60,756.3 | 15,621.0 | 45,220.7 | \u2212 | 60,841.8 |
\u00a0
As at 31\u00a0December 2023 (in EUR million) | Fair Value | ||||
|---|---|---|---|---|---|
Carrying Value | Level\u00a01 | Level\u00a02 | Level\u00a03 | Total | |
Financial liabilities measured at FVTPL | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Derivative financial instruments in hedge | 103.4 | \u00a0 | 103.4 | \u00a0 | 103.4 |
Derivative financial instruments not in hedge | 542.4 | \u00a0 | 542.4 | \u00a0 | 542.4 |
Financial liabilities measured at amortised cost | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Trade and other payables | 6,106.7 | \u00a0 | 6,106.7 | \u2212 | 6,106.7 |
Deposits | 11,784.7 | \u00a0 | 11,822.4 | \u00a0 | 11,822.4 |
Borrowings from financial institutions | 21,488.4 | \u00a0 | 21,488.4 | \u2212 | 21,488.4 |
Bonds issued | 16,138.3 | 6,902.8 | 9,246.4 | \u00a0 | 16,149.2 |
Total | 56,163.9 | 6,902.8 | 49,309.7 | \u2212 | 56,212.5 |
Level\u00a01 \u2013 for the equity instruments measured at this level the Group has used the current bid price for the equity instrument in a quoted market while for financial asset debt securities the Group has used the quoted government bond price in an active market.
Level\u00a02\u00a0\u2013 loans to associates and jointly controlled entities have been fair valued using a discounted cashflow model using market observable inputs for the discount rate while the key inputs used in valuing the derivative hedge and hedging instruments are directly observable inputs including forward exchange rates, yield curves and spot rates. For details on lease receivables fair value measurement see Note\u00a022.
Level\u00a03 \u2013 the Group has an equity investment in Constellation Automotive Holdings S.a.r.l., where the discounted cashflow valuation model has a significant part of the inputs that are not market observable. Unobservable in this context means that there is little or no current market data available from which to derive a price that an unrelated, informed buyer would be expected to purchase the asset or liability.
For each level there has been no change to the valuation techniques used during the period. For financial instruments that are recognised at fair value on a recurring basis, the Group determines whether transfers have occurred between Levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting year. There were no transfers between the different levels during the current reporting or prior period.
Other financial assets and liabilities not measured at fair value have a carrying amount which is a reasonable approximation of fair value, due to being short-term in nature.
\u00a0
The movements in the fair value of the level\u00a03 financial assets and liabilities are shown as follows:
\u00a0
Level\u00a03 financial asset (in EUR million) | 2024 | 2023 |
|---|---|---|
At 1\u00a0January | 15.4 | \u2212 |
Change in scope | \u2212 | 16.4 |
Net profit/(loss) recorded in the income statement | 4.0 | (1.0) |
At 31\u00a0December | 19.4 | 15.4 |
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Bank borrowings | 11,996.8 | 13,123.6 |
Tier\u00a02 subordinated debt | 1,500.0 | 1,500.0 |
Non-current borrowings from financial institutions | 13,496.8 | 14,623.6 |
Bank overdrafts | 567.6 | 315.3 |
Bank borrowings | 9,271.8 | 6,537.3 |
Tier\u00a02 subordinated debt | 10.6 | 12.2 |
Current borrowings from financial institutions | 9,850.1 | 6,864.9 |
Total borrowings from financial institutions | 23,346.9 | 21,488.4 |
Bonds and notes-originated from securitisation transactions | 2,060.2 | 2,870.9 |
Bonds and notes-originated from EMTN and other programmes | 9,473.0 | 10,070.3 |
Bonds and notes\u00a0\u2013 fair value adjustment | (33.1) | (163.8) |
Non-current bonds and notes issued | 11,500.1 | 12,777.3 |
Bonds and notes-originated from securitisation transactions | 1,491.7 | 1,385.4 |
Bonds and notes-originated from EMTN and other programmes | 4,325.1 | 2,053.9 |
Bonds and notes\u00a0\u2013 fair value adjustment | (81.9) | (78.4) |
Current bonds and notes issued | 5,734.9 | 3,360.9 |
Total bonds and notes issued | 17,235.0 | 16,138.3 |
Total borrowings from financial institutions and bonds | 40,581.8 | 37,626.7 |
Non-current deposits | 7,906.6 | 4,041.5 |
Current deposits | 5,984.0 | 7,743.2 |
Total deposits (1) | 13,890.6 | 11,784.7 |
Total non-current financial debt | 32,641.4 | 31,442.5 |
Total current financial debt | 21,831.0 | 17,969.0 |
Total financial debt | 54,472.4 | 49,411.5 |
As percentage of total financial debt | \u00a0 | \u00a0 |
Total borrowings | 42.9% | 43.5% |
Total deposits\u00a0(1) | 25.5% | 23.9% |
Total bonds | 25.1% | 24.0% |
Total securitisation programme | 6.5% | 8.6% |
|
\u00a0\u00a0\u00a0\u00a0
As at 31 December 2024, the net amount of loans granted to the Group entities by Societe Generale and its affiliates minus the deposits placed by the Group entities with Societe Generale Group entities, was EUR 12,511.2 million (2023: EUR 13,330.4 million).
Most of the funding provided by the Societe Generale Group is granted through Societe Generale Paris and Societe Generale Luxembourg. Societe Generale Paris and Societe Generale Luxembourg\u00a0 funds Ayvens Central Treasury which grants loans in different currencies to the Group subsidiaries and holding companies.
Included in Societe Generale funding is Tier\u00a02 subordinated debt which has been issued at a variable rate of (Euribor 3-month +336bps margin) and has a 10\u00a0year maturity with a non-cancellable period of 5\u00a0years. As the instrument qualifies as a debt instrument measured at amortised cost, interest is accounted for using the effective interest rate method. Debt issue costs were deducted from the initial fair value of the liability. Tier\u00a02 subordinated debt has been partially used to fund the acquisition of LeasePlan (EUR\u00a0615.5\u00a0million).
Tier\u00a01 subordinated debt (AT1 capital) qualifies as an equity instrument under IFRS. For further information on Tier\u00a01 debt, see Note\u00a027.
\u00a0
An amount of EUR\u00a05,286.6\u00a0million or 9.7% of total funding is provided by external banks (2023: 10.6% at EUR\u00a05,252.0\u00a0million).
Included within this amount are loans granted by the European Investment Bank of EUR\u00a0300\u00a0million in April\u00a02023. This enables the Group to develop its range of hybrid and electric vehicles across the EU, particularly in France, Germany, Italy, Spain, Belgium and the Netherlands.
\u00a0
\u00a0
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Less than 1\u00a0year | 9,850.1 | 6,864.9 |
1-5\u00a0years | 11,995.1 | 12,923.8 |
Over 5\u00a0years | 1,501.7 | 1,699.7 |
Total borrowings | 23,346.9 | 21,488.4 |
\u00a0
\u00a0
The carrying amounts of the Group\u2019s borrowings are denominated in the following currencies:
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Euro | 12,363.2 | 15,616.0 |
UK Pound | 5,056.9 | 2,389.8 |
Danish Krone | 1,026.4 | 625.7 |
Swedish Krona | 889.4 | 440.2 |
Norwegian Krona | 703.5 | 163.3 |
Turkish Lira | 11.4 | 0.3 |
Other currencies | 3,296.0 | 2,253.1 |
Total borrowings | 23,346.9 | 21,488.4 |
Within this \u00a0programme, the Group has the following outstanding bonds issued as at 31\u00a0December 2024:
Issued date | Maturity date | Amount (in million) | Rate |
|---|---|---|---|
ALD | |||
February\u00a02022 | March\u00a02026 | 700 | 1.250% |
July\u00a02022 | July\u00a02027 | 500 | 4.000% |
October\u00a02022 | October\u00a02025 | 750 | 4.750% |
January\u00a02023 | January\u00a02027 | 750 | 4.250% |
February\u00a02023 | February\u00a02025 | 500 | Euribor 3M +0.55 |
June\u00a02023 | February\u00a02025 | 600 | Euribor 3M +0.55 |
October\u00a02023 | October\u00a02025 | 1000 | Euribor 3M +0.65 |
October\u00a02023 | October\u00a02028 | 1000 | 4.875% |
November\u00a02023 | November\u00a02026 | 500 | 4.375% |
January\u00a02024 | January\u00a02031 | 500 | 4.000% |
January\u00a02024 | January\u00a02028 | 1000 | 3.875% |
February\u00a02024 | February\u00a02027 | 1000 | 3.875% |
March\u00a02024(1) | March\u00a02029 | 220 | 2.225% |
July\u00a02024 | July\u00a02029 | 750 | 3.875% |
LeasePlan\u00a0(2) | |||
April\u00a02020 | April\u00a02025 | 500 | 3.500% |
February\u00a02021 | February\u00a02026 | 1000 | 0.250% |
September\u00a02021 | September\u00a02026 | 1000 | 0.250% |
May\u00a02022 | May\u00a02025 | 750 | 2.130% |
(1) \u00a0Bond issue in Swiss Franc (CHF). (2) \u00a0Excluding private placements. |
\u00a0
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Less than 1\u00a0year | 4,243.2 | 1,975.6 |
1-5\u00a0years | 8,939.9 | 9,844.0 |
Over 5\u00a0years | 500.0 | 62.5 |
Total bonds | 13,683.0 | 11,882.1 |
\u00a0
\u00a0
The carrying amounts of the Group\u2019s bonds are denominated in the following currencies:
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Euro | 13,164.0 | 10,766.9 |
Norwegian Krona | 264.9 | 317.7 |
Other currencies | 254.1 | 797.4 |
Total bonds | 13,683.0 | 11,882.1 |
The following debt securities are currently issued:
Programme and special purpose company | Deal type | Country | Currency | Amount (in\u00a0million)\u00a0(1) | Set up/ |
|---|---|---|---|---|---|
ALD Funding Limited | Private | UK | GBP | 500 | February\u00a02023 |
Axus Finance SPRL | Private | Belgium | EUR | 401 | June\u00a02022 |
FCT Red & Black Auto Lease France 2 | Public | France | EUR | 390 | June\u00a02023 |
Bumper BE\u00a0NV/SA No.\u00a001 | Public | Belgium | EUR | 100 | October\u00a02021 |
Bumper FR 2022-1 FCT | Public | France | EUR | 197 | April\u00a02022 |
C_NL16\u00a0\u2013 Bumper NL 2023-1 BV | Public | Netherlands | EUR | 453 | September\u00a02023 |
Bumper NL 2024-1 BV | Public | Netherlands | EUR | 600 | September\u00a02024 |
C_NL17\u00a0\u2013 Axus Finance NL\u00a0BV | Private | Netherlands | EUR | 500 | June\u00a02023 |
Bumper DE\u00a0SA\u00a02023-1 | Public | Germany | EUR | 305 | February\u00a02023 |
|
\u00a0
The interest outstanding at the balance sheet date was EUR\u00a0225.1\u00a0million (2023: 135.8\u00a0million).
\u00a0
The maturity of the asset-backed securitisation programmes is as follows:
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Less than 1\u00a0year | 1,491.7 | 1,385.4 |
1-5\u00a0years | 2,060.2 | 2,870.9 |
Total securitisation programme | 3,552.0 | 4,256.2 |
\u00a0
\u00a0
The carrying amounts of the Group\u2019s asset-backed securitisation programmes are denominated in the following currencies:
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Euro | 2,949.0 | 3,730.0 |
UK Pound | 603.0 | 526.2 |
Total securitisation programme | 3,552.0 | 4,256.2 |
\u00a0
\u00a0
Securitisation programmes involve the sale of future lease instalment receivables and, in some cases, related residual value receivables originated by various Group\u00a0subsidiaries\u00a0to special purpose companies which are included in the consolidated financial statements of the Group. Debt securities were issued by these special purpose companies to finance these transactions. The special purpose companies are responsible for making interest and principal payments to the note holders. The Group continues to retain substantially all of the risks and rewards of the lease receivables as in all asset-backed securitisation programmes they subscribed to the first class of notes which will result in the Group bearing any realised losses. Therefore, the Group continues to recognise the transferred lease assets in their entirety.
(in EUR million) | Receivables from clients (finance and operating leases) | Cash collateral | Total |
|---|---|---|---|
At 31\u00a0December 2024 | \u00a0 | \u00a0 | \u00a0 |
Carrying amount of transferred assets | 4,648.0 | 66.7 | 4,714.7 |
Carrying amount of associated liabilities\u00a0(1) | \u00a0 | \u00a0 | (3,552.0) |
Net carrying amount position | \u00a0 | \u00a0 | 1,162.7 |
Fair value of transferred assets | 5,006.6 | 66.7 | 5,073.3 |
Fair value of associated liabilities\u00a0(1) | \u00a0 | \u00a0 | (3,552.0) |
Net fair value position as at 31\u00a0December 2024 | \u00a0 | \u00a0 | 1,521.3 |
At 31\u00a0December 2023 | \u00a0 | \u00a0 | \u00a0 |
Carrying amount of transferred assets | 6,061.8 | 69.3 | 6,131.1 |
Carrying amount of associated liabilities\u00a0(1) | \u00a0 | \u00a0 | (4,256.2) |
Net carrying amount position | \u00a0 | \u00a0 | 1,874.9 |
Fair value of transferred assets | 6,286.3 | 69.3 | 6,355.6 |
Fair value of associated liabilities\u00a0(1) | \u00a0 | \u00a0 | (4,256.2) |
Net fair value position as at 31\u00a0December 2023 | \u00a0 | \u00a0 | 2,099.4 |
|
\u00a0
\u00a0
Saving deposits raised by Ayvens Bank amount to EUR\u00a013.8\u00a0billion at 31\u00a0December 2024 of which 48.4% is deposited for a fixed term (2023: 31.7% at EUR\u00a011.8\u00a0billion). Savings deposits are raised by Ayvens Bank N.V. which holds a banking licence in the Netherlands. Ayvens Bank also operates on the German savings deposit market with a cross border offering from the Netherlands.
The maturity analysis of these deposits is as follows:
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Deposits\u00a0(1) | 13,767.4 | 11,729.2 |
Payables related to deposits | 123.2 | 55.5 |
Total | 13,890.6 | 11,784.7 |
of which: | \u00a0 | \u00a0 |
Less than 1\u00a0year | 5,984.0 | 7,743.2 |
1 -5\u00a0years | 7,906.5 | 3,925.0 |
Over 5\u00a0years | \u2212 | 116.6 |
|
\u00a0
The average interest rates on the outstanding balances of the fixed term savings deposits in original maturity terms are as follows:
\u00a0 | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Three months or less | 1.79% | 1.60% |
Longer than three months, less than a year | 3.04% | 2.71% |
Longer than a year, less than 5\u00a0years | 3.01% | 1.53% |
\u00a0
The interest of the on-demand accounts is set monthly. The interest outstanding at the balance sheet date was EUR\u00a0122.6\u00a0million (2023: EUR\u00a055.5\u00a0million).
\u00a0\u00a0
\u00a0
Refer to note 5.1 Financial risk factors, section Liquidity risk measurement, for an overview of the undrawn borrowing facilities.
\u00a0
A guarantee at first demand has been granted to ING Luxembourg for an amount of EUR\u00a050\u00a0million on behalf of Axus Luxembourg SA.
A guarantee has been granted to Stellantis\u00a0SA for an amount of EUR\u00a020\u00a0million on behalf of Fleetpool, under the condition negotiated in the frame of the distribution agreement concluded with this financial institution.
The Group has issued guarantees to the total value of EUR\u00a0324.4\u00a0million of which EUR\u00a0322.4\u00a0million is related to residual value guarantees issued to clients.
Changes in liabilities arising from financing activities are shown in the table below.
(in EUR million) | Balance as at 1\u00a0January 2024 | Financing cash flows | Interest accrued | Movement in\u00a0fair value | Foreign exchange adjustment | Scope changes | Other | Balance as at 31\u00a0December 2024 |
|---|---|---|---|---|---|---|---|---|
Overdraft | 315.3 | 266.8 | \u2212 | \u2212 | 0.4 | \u2212 | (14.9) | 567.6 |
Borrowings from financial institutions excl. overdraft | 21,173.1 | 752.9 | 133.9 | \u2212 | (44.5) | \u2212 | 763.8 | 22,779.2 |
Bonds and notes issued | 16,138.3 | 474.6 | 91.0 | 127.2 | (9.9) | 381.3 | 32.5 | 17,235.0 |
Deposits | 11,784.7 | 2,038.1 | 67.7 | \u2212 | \u2212 | \u2212 | \u2212 | 13,890.6 |
Lease liabilities | 252.3 | (54.9) | (5.9) | \u2212 | (1.0) | (0.1) | 37.4 | 227.9 |
\u00a0
(in EUR million) | Balance as at 1\u00a0January 2023 | Financing cash flows | Interest accrued | Movement in\u00a0fair value | Foreign exchange adjustment | Scope changes | Other | Balance as at 31\u00a0December 2023 |
|---|---|---|---|---|---|---|---|---|
Overdraft | 129.5 | 157.6 | \u2212 | \u2212 | 1.5 | 26.6 | \u2212 | 315.3 |
Borrowings from financial institutions excl. overdraft | 14,441.6 | 3,868.2 | 63.9 | \u2212 | 101.0 | 2,698.5 | \u2212 | 21,173.1 |
Bonds and notes issued | 5,303.4 | 1,366.3 | 68.8 | 68.2 | 12.2 | 9,319.3 | \u2212 | 16,138.3 |
Deposits | \u2212 | 451.9 | 31.2 | \u2212 | \u2212 | 11,301.7 | \u2212 | 11,784.7 |
Lease liabilities | 117.2 | (52.6) | (5.9) | \u2212 | 0.9 | 163.6 | 29.0 | 252.3 |
The Group classifies its financial assets in the following measurement categories:
The classification depends on the entity\u2019s business model for managing the financial assets and the contractual terms of the cash flows. For assets measured at fair value, gains and losses will either be recorded in consolidated income statement or Other Comprehensive Income (OCI). For investments in equity instruments that are not held for trading, this will depend on whether the Group has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income (FVOCI). The derivative financial instruments will be classified as subsequently measured at fair value through profit or loss.
The Group has not elected to irrevocably designate any financial liability for FVTPL so all financial liabilities are measured at amortised cost unless they are held for trading, in which case the financial liability will be at FVTPL. Financial liabilities at FVTPL currently only include derivative financial instruments in the Group\u2019s financial statements (refer to derivatives policy and Note\u00a03.4.10).
Regular way purchases and sales of financial assets are recognised on the balance sheet:
A financial liability is recognised when the Group becomes party to a contractual obligation to deliver cash or another financial instrument to another entity.
Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership. Financial liabilities are derecognised if the Group\u2019s obligations specified in the contract expire or are discharged or cancelled.
Financial assets and liabilities are offset, and the net amount is presented in the balance sheet when the Group has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and liability simultaneously. Income and expenses are presented on a net basis only when permitted by IFRS.
\u00a0
At initial recognition, the Group measures a financial asset or financial liability at its fair value plus or less, in the case of a financial asset not at fair value through profit or loss (FVPL), transaction costs that are directly attributable to the acquisition of the financial asset or financial liability. Transaction costs of financial instruments carried at FVTPL are expensed in the consolidated income statement.
Subsequent measurement of debt instruments depends on the Group\u2019s business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the Group classifies its debt instruments:
The Group subsequently measures all equity investments at fair value. Where the Group\u2019s management has elected to present fair value gains and losses on equity investments in OCI, there is no subsequent reclassification of fair value gains and losses to the income statement following the derecognition of the investment. Dividends from such investments continue to be recognised in the income statement as other income when the Group\u2019s right to receive payments is established.
Changes in the fair value of financial assets at FVPL are recognised in \u201cother income/(expenses)\u201d in the income statement as applicable.
\u00a0
Borrowings and other financial liabilities, including debt securities issued and other borrowings, are initially measured at fair value, net of transaction costs. Borrowings and other financial liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis. The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period. Transaction costs are included in amortised cost using the effective interest method.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the effective interest rate (EIR). The EIR amortisation is included as finance costs in the income. For more information, refer to Note\u00a029 Borrowings from financial institutions, bonds and notes issued.
\u00a0\u00a0
The Group measures financial instruments, such as derivatives, at fair value at each balance sheet date. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:
The principal or the most advantageous market must be accessible to the Group.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data is available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level of input that is significant to the fair value measurement as a whole.
The fair value of assets and liabilities is presented according to a fair value hierarchy that reflects the level of observability of the data used to make the valuations. The fair value hierarchy consists of the following levels:
For assets and liabilities that are recognised in the financial statements on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level of input that is significant to the fair value measurement as a whole) at the end of each reporting period.
In order to hedge its exposure to foreign exchange and interest rate, the Group enters into forward, option and swap contracts. None of these contracts meet the own use exemption in IFRS\u00a09 and are accounted for as derivatives. Derivatives are financial instruments, of which the value changes in response to underlying variables. Derivative instruments are used as part of the overall strategy to manage exposure to market risks primarily associated with fluctuations in interest rates and foreign exchange rates through interest rate and currency swaps respectively. As a matter of policy, derivatives are not used for speculative purposes. The Group documents at the inception of the transaction the relationship between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedging transactions. The Group also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items.
Derivatives are initially recognised at fair value on the date a derivative contract is entered into (trade date) and are subsequently re-measured at their fair value. The method of recognising the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged. The fair value of cross currency and interest rate swaps is the estimated amount that the Group would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The fair values of not-actively traded instruments are calculated using a generally accepted discounted cash flow method, while considering relevant market observable data such as quoted forward prices and interest rates. As a result of having collateral agreements in place for certain of its derivative counterparts, the requirement to reflect other observable market inputs such as CVA, DVA and FVA is eliminated for discounting purposes. The fair values of various derivative instruments used for hedging purposes are disclosed in Note\u00a026. Movements on the hedging reserve in other comprehensive income are shown in consolidated statement of changes in equity. The fair value of a hedging derivative is classified as a non-current asset or liability when the remaining hedged item is more than 12\u00a0months and as a current asset or liability when the remaining maturity of the hedged item is less than 12\u00a0months.
Changes in the fair value of derivative financial instruments that are designated and effective as hedges of future cash flows (cash flow hedges) are recognised directly in equity through Other Comprehensive Income. The gain or loss relating to the ineffective portion is recognised immediately in the income statement within \u201cunrealised gains/losses on financial instruments\u201d. If the cash flow hedge of a firm commitment or future transaction results in the recognition of a non-financial asset or liability, then, at the time the asset or liability is recognised, the associated gains or losses on the derivative that had previously been recognised in equity are included in the initial measurement of the asset or liability. For hedges that do not result in the recognition of a non-financial asset or liability, including the effective portion of interest rate swaps hedging variable rate borrowings, amounts deferred in equity are recognised in the income statement in the same period in which the hedged item affects profit or loss.
The Group only applies fair value hedge accounting for hedging fixed interest risk on borrowings. For an effective hedge of an exposure to changes in fair value, the hedged item is adjusted for changes in fair value attributable to the risk being hedged. The corresponding entry and gains or losses arising from remeasuring the associated derivative are recognised in the income statement within \u201cunrealised gains/losses on financial instruments\u201d. Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the hedged item and hedging instrument. The Group\u2019s material hedging instruments are interest rate swaps and cross currency swaps that have similar critical terms to the related debt instruments, such as payment dates, maturities and notional amount. As all critical terms matched during the year, there was no material hedge ineffectiveness. The Group also uses cross currency swaps to manage foreign exchange risk associated with borrowings denominated in foreign currencies. Where not designated in an accounting hedge there is a natural offset against foreign exchange movements on associated borrowings.
Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, exercised, revoked, or no longer qualifies for hedge accounting. At that time, any cumulative gain or loss on the hedging instrument recognised in equity is retained until the forecast transaction occurs. If a hedge transaction is no longer expected to occur, the net cumulative gain or loss previously recognised in equity is recycled to the income statement for the period. Changes in the fair value of any derivative instruments that are not designated in a hedge relationship are recognised immediately in the income statement within \u201cUnrealised gains/(losses) on financial instruments\u201d.
Derivatives embedded in other financial instruments or non-financial host contracts (other than financial assets in the scope of IFRS\u00a09) are treated as separate derivatives when their risks and characteristics are not closely related to those of their host contracts and the host contracts themselves are not carried at fair value with unrealised gains or losses reported in the income statement. Derivatives embedded in contracts which are financial assets in the scope of IFRS\u00a09 are not separated and the whole contract is accounted for at either amortised cost or fair value.
The types of risks that the Group is exposed to and derivatives used to hedge these risks can be found in Note\u00a05.1 Financial risk factors and Note\u00a019 Derivative financial instruments.
An expected credit loss (ECL) provision is applied to all receivables from customers that are measured at amortised cost with the exception of those receivables deemed to be out of scope. The Group have applied this scope exemption when the receivable meets the low credit risk exemption criteria. The Group has applied this to receivables on used car sales and insurance receivables, where there is zero or almost no history of credit risk or the amounts due are from financial institutions with an investment grade credit rating.
For the other receivables from customers former LeasePlan entities have aligned with existing ALD policies as of May\u00a02024. Overall, the Group segments the receivables from customers into sound and doubtful receivables that includes receivables that have met the definition of default. For sound receivables the Group applies a simplified approach in calculating ECLs from initial recognition of the receivable, which means the Group does not track changes in significant increase in credit risk but instead recognises a loss allowance based on lifetime ECLs at each reporting date.
The Group has established a provision matrix for the sound receivables that is based on its historical credit loss experience by ageing categories, adjusted for forward-looking factors specific to the debtors and the economic environment when the impact of those factors is material to the financial statements. To establish the forward-looking element of IFRS\u00a09 provision, the Group uses macroeconomic data and analysis through local uplifts to probability of default and loss given default rates.
Since obtaining the financial holding status, the Group has aligned its definition of default to the ECB Regulatory Capital CRR Article\u00a0178 definition of default in 2023. This change applies to historic ALD entities only as LeasePlan entities were already aligned with the Article\u00a0178 definition of default due to holding a banking licence prior to the acquisition. For purposes of assessing, recognising and reporting defaults, a customer shall be considered to be in default when either one or both of the following events occur:
The application of the above guidance is only to the extent of identifying the customers that are in default. There is no change in the method of determining the value of impairment. Where the customer is in default, the whole of the customer balance is classified as doubtful, and impairment is based upon the full outstanding amount, except where we have adjudged there are mitigating circumstances.\u00a0
Alignment of LeasePlan entities with the Ayvens methodology increased the IFRS 9 provisions by EUR\u00a017.5\u00a0million as part of the purchase price allocation. Main driver of that increase is the provisioning of 100% for receivables from customers past due more than 90 consecutive days on any material credit obligation. The subsequent increase (EUR\u00a05.9\u00a0million) was accounted for as cost of risk in Q1 2024.
Expected credit losses are reassessed at each reporting date and reflect all reasonable information that is available at the reporting date. Judgement is required from management for applying appropriate models and setting assumptions for the measurement of ECL. The methodology, assumptions and data, including any forecasts of future economic conditions, macroeconomic impacts and the Group\u2019s provision matrix are reviewed regularly by management in determining the expected credit losses and the write-off of receivables. Doubtful debts should be written off as soon as the definitive loss is known.
Where the Group have acquired credit-impaired receivables from customers as part of a business combination, the gross receivable is initial recognised at fair value with no carrying impairment allowance. The Group only recognises the cumulative changes in lifetime expected credit losses since initial recognition as a loss allowance for originated purchased credit-impaired financial assets in the income statement.
Disputes often arise in the collection of lease receivables and tend to range from issues relating to the performance of various services under the contract to the amount of end-of-contract billing. A dispute has no impact on the solvency of the customer or the risk of default, and therefore is not a credit loss. As such these amounts are removed from sound receivables and a provision is applied based on our provisions accounting policy. For presentation purposes the provision is netted against the \u201cReceivables from customers\u201d balance sheet line item.
Details about the assumptions and estimation techniques used in measuring ECL for finance lease receivables and trade receivables from operating lease contracts are provided in the section Credit risk management and disclosure on the impairment provided in Note\u00a022 Lease receivables from customers.
Details about the methodology in measuring ECL for finance lease receivables and trade receivables from operating lease contracts are provided in Note\u00a022 Lease receivables from customers. Expected credit losses are reassessed at each reporting date and reflect all reasonable information that is available at the reporting date. Judgement is required from management for applying appropriate models and setting assumptions for the measurement of ECL. The methodology, assumptions and data, including any forecasts of future economic conditions, macroeconomic impacts and the Group\u2019s provision matrix are reviewed regularly by management in determining the expected credit losses and the write-off of receivables.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_df872909-bdf3-495a-9708-212a97726027": { "value": "The Group classifies its financial assets in the following measurement categories:
The classification depends on the entity\u2019s business model for managing the financial assets and the contractual terms of the cash flows. For assets measured at fair value, gains and losses will either be recorded in consolidated income statement or Other Comprehensive Income (OCI). For investments in equity instruments that are not held for trading, this will depend on whether the Group has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income (FVOCI). The derivative financial instruments will be classified as subsequently measured at fair value through profit or loss.
The Group has not elected to irrevocably designate any financial liability for FVTPL so all financial liabilities are measured at amortised cost unless they are held for trading, in which case the financial liability will be at FVTPL. Financial liabilities at FVTPL currently only include derivative financial instruments in the Group\u2019s financial statements (refer to derivatives policy and Note\u00a03.4.10).
Regular way purchases and sales of financial assets are recognised on the balance sheet:
A financial liability is recognised when the Group becomes party to a contractual obligation to deliver cash or another financial instrument to another entity.
Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership. Financial liabilities are derecognised if the Group\u2019s obligations specified in the contract expire or are discharged or cancelled.
Financial assets and liabilities are offset, and the net amount is presented in the balance sheet when the Group has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and liability simultaneously. Income and expenses are presented on a net basis only when permitted by IFRS.
\u00a0
At initial recognition, the Group measures a financial asset or financial liability at its fair value plus or less, in the case of a financial asset not at fair value through profit or loss (FVPL), transaction costs that are directly attributable to the acquisition of the financial asset or financial liability. Transaction costs of financial instruments carried at FVTPL are expensed in the consolidated income statement.
Subsequent measurement of debt instruments depends on the Group\u2019s business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the Group classifies its debt instruments:
The Group subsequently measures all equity investments at fair value. Where the Group\u2019s management has elected to present fair value gains and losses on equity investments in OCI, there is no subsequent reclassification of fair value gains and losses to the income statement following the derecognition of the investment. Dividends from such investments continue to be recognised in the income statement as other income when the Group\u2019s right to receive payments is established.
Changes in the fair value of financial assets at FVPL are recognised in \u201cother income/(expenses)\u201d in the income statement as applicable.
An expected credit loss (ECL) provision is applied to all receivables from customers that are measured at amortised cost with the exception of those receivables deemed to be out of scope. The Group have applied this scope exemption when the receivable meets the low credit risk exemption criteria. The Group has applied this to receivables on used car sales and insurance receivables, where there is zero or almost no history of credit risk or the amounts due are from financial institutions with an investment grade credit rating.
For the other receivables from customers former LeasePlan entities have aligned with existing ALD policies as of May\u00a02024. Overall, the Group segments the receivables from customers into sound and doubtful receivables that includes receivables that have met the definition of default. For sound receivables the Group applies a simplified approach in calculating ECLs from initial recognition of the receivable, which means the Group does not track changes in significant increase in credit risk but instead recognises a loss allowance based on lifetime ECLs at each reporting date.
The Group has established a provision matrix for the sound receivables that is based on its historical credit loss experience by ageing categories, adjusted for forward-looking factors specific to the debtors and the economic environment when the impact of those factors is material to the financial statements. To establish the forward-looking element of IFRS\u00a09 provision, the Group uses macroeconomic data and analysis through local uplifts to probability of default and loss given default rates.
Since obtaining the financial holding status, the Group has aligned its definition of default to the ECB Regulatory Capital CRR Article\u00a0178 definition of default in 2023. This change applies to historic ALD entities only as LeasePlan entities were already aligned with the Article\u00a0178 definition of default due to holding a banking licence prior to the acquisition. For purposes of assessing, recognising and reporting defaults, a customer shall be considered to be in default when either one or both of the following events occur:
The application of the above guidance is only to the extent of identifying the customers that are in default. There is no change in the method of determining the value of impairment. Where the customer is in default, the whole of the customer balance is classified as doubtful, and impairment is based upon the full outstanding amount, except where we have adjudged there are mitigating circumstances.\u00a0
Alignment of LeasePlan entities with the Ayvens methodology increased the IFRS 9 provisions by EUR\u00a017.5\u00a0million as part of the purchase price allocation. Main driver of that increase is the provisioning of 100% for receivables from customers past due more than 90 consecutive days on any material credit obligation. The subsequent increase (EUR\u00a05.9\u00a0million) was accounted for as cost of risk in Q1 2024.
Expected credit losses are reassessed at each reporting date and reflect all reasonable information that is available at the reporting date. Judgement is required from management for applying appropriate models and setting assumptions for the measurement of ECL. The methodology, assumptions and data, including any forecasts of future economic conditions, macroeconomic impacts and the Group\u2019s provision matrix are reviewed regularly by management in determining the expected credit losses and the write-off of receivables. Doubtful debts should be written off as soon as the definitive loss is known.
Where the Group have acquired credit-impaired receivables from customers as part of a business combination, the gross receivable is initial recognised at fair value with no carrying impairment allowance. The Group only recognises the cumulative changes in lifetime expected credit losses since initial recognition as a loss allowance for originated purchased credit-impaired financial assets in the income statement.
Disputes often arise in the collection of lease receivables and tend to range from issues relating to the performance of various services under the contract to the amount of end-of-contract billing. A dispute has no impact on the solvency of the customer or the risk of default, and therefore is not a credit loss. As such these amounts are removed from sound receivables and a provision is applied based on our provisions accounting policy. For presentation purposes the provision is netted against the \u201cReceivables from customers\u201d balance sheet line item.
Details about the assumptions and estimation techniques used in measuring ECL for finance lease receivables and trade receivables from operating lease contracts are provided in the section Credit risk management and disclosure on the impairment provided in Note\u00a022 Lease receivables from customers.
Details about the methodology in measuring ECL for finance lease receivables and trade receivables from operating lease contracts are provided in Note\u00a022 Lease receivables from customers. Expected credit losses are reassessed at each reporting date and reflect all reasonable information that is available at the reporting date. Judgement is required from management for applying appropriate models and setting assumptions for the measurement of ECL. The methodology, assumptions and data, including any forecasts of future economic conditions, macroeconomic impacts and the Group\u2019s provision matrix are reviewed regularly by management in determining the expected credit losses and the write-off of receivables.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialAssetsExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_065c0bb6-f920-4104-80c4-bb8ccfe6d229": { "value": "Financial assets and liabilities are offset, and the net amount is presented in the balance sheet when the Group has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and liability simultaneously. Income and expenses are presented on a net basis only when permitted by IFRS.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForOffsettingOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_75e878c2-52ef-424f-a73e-8c2acdf6f270": { "value": "Borrowings and other financial liabilities, including debt securities issued and other borrowings, are initially measured at fair value, net of transaction costs. Borrowings and other financial liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis. The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period. Transaction costs are included in amortised cost using the effective interest method.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the effective interest rate (EIR). The EIR amortisation is included as finance costs in the income. For more information, refer to Note\u00a029 Borrowings from financial institutions, bonds and notes issued.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialLiabilitiesExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_2c600919-d29c-428b-a15f-77545dbc4299": { "value": "Borrowings and other financial liabilities, including debt securities issued and other borrowings, are initially measured at fair value, net of transaction costs. Borrowings and other financial liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis. The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period. Transaction costs are included in amortised cost using the effective interest method.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the effective interest rate (EIR). The EIR amortisation is included as finance costs in the income. For more information, refer to Note\u00a029 Borrowings from financial institutions, bonds and notes issued.
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Bank borrowings | 11,996.8 | 13,123.6 |
Tier\u00a02 subordinated debt | 1,500.0 | 1,500.0 |
Non-current borrowings from financial institutions | 13,496.8 | 14,623.6 |
Bank overdrafts | 567.6 | 315.3 |
Bank borrowings | 9,271.8 | 6,537.3 |
Tier\u00a02 subordinated debt | 10.6 | 12.2 |
Current borrowings from financial institutions | 9,850.1 | 6,864.9 |
Total borrowings from financial institutions | 23,346.9 | 21,488.4 |
Bonds and notes-originated from securitisation transactions | 2,060.2 | 2,870.9 |
Bonds and notes-originated from EMTN and other programmes | 9,473.0 | 10,070.3 |
Bonds and notes\u00a0\u2013 fair value adjustment | (33.1) | (163.8) |
Non-current bonds and notes issued | 11,500.1 | 12,777.3 |
Bonds and notes-originated from securitisation transactions | 1,491.7 | 1,385.4 |
Bonds and notes-originated from EMTN and other programmes | 4,325.1 | 2,053.9 |
Bonds and notes\u00a0\u2013 fair value adjustment | (81.9) | (78.4) |
Current bonds and notes issued | 5,734.9 | 3,360.9 |
Total bonds and notes issued | 17,235.0 | 16,138.3 |
Total borrowings from financial institutions and bonds | 40,581.8 | 37,626.7 |
Non-current deposits | 7,906.6 | 4,041.5 |
Current deposits | 5,984.0 | 7,743.2 |
Total deposits (1) | 13,890.6 | 11,784.7 |
Total non-current financial debt | 32,641.4 | 31,442.5 |
Total current financial debt | 21,831.0 | 17,969.0 |
Total financial debt | 54,472.4 | 49,411.5 |
As percentage of total financial debt | \u00a0 | \u00a0 |
Total borrowings | 42.9% | 43.5% |
Total deposits\u00a0(1) | 25.5% | 23.9% |
Total bonds | 25.1% | 24.0% |
Total securitisation programme | 6.5% | 8.6% |
|
\u00a0\u00a0\u00a0\u00a0
As at 31 December 2024, the net amount of loans granted to the Group entities by Societe Generale and its affiliates minus the deposits placed by the Group entities with Societe Generale Group entities, was EUR 12,511.2 million (2023: EUR 13,330.4 million).
Most of the funding provided by the Societe Generale Group is granted through Societe Generale Paris and Societe Generale Luxembourg. Societe Generale Paris and Societe Generale Luxembourg\u00a0 funds Ayvens Central Treasury which grants loans in different currencies to the Group subsidiaries and holding companies.
Included in Societe Generale funding is Tier\u00a02 subordinated debt which has been issued at a variable rate of (Euribor 3-month +336bps margin) and has a 10\u00a0year maturity with a non-cancellable period of 5\u00a0years. As the instrument qualifies as a debt instrument measured at amortised cost, interest is accounted for using the effective interest rate method. Debt issue costs were deducted from the initial fair value of the liability. Tier\u00a02 subordinated debt has been partially used to fund the acquisition of LeasePlan (EUR\u00a0615.5\u00a0million).
Tier\u00a01 subordinated debt (AT1 capital) qualifies as an equity instrument under IFRS. For further information on Tier\u00a01 debt, see Note\u00a027.
\u00a0
An amount of EUR\u00a05,286.6\u00a0million or 9.7% of total funding is provided by external banks (2023: 10.6% at EUR\u00a05,252.0\u00a0million).
Included within this amount are loans granted by the European Investment Bank of EUR\u00a0300\u00a0million in April\u00a02023. This enables the Group to develop its range of hybrid and electric vehicles across the EU, particularly in France, Germany, Italy, Spain, Belgium and the Netherlands.
\u00a0
\u00a0
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Less than 1\u00a0year | 9,850.1 | 6,864.9 |
1-5\u00a0years | 11,995.1 | 12,923.8 |
Over 5\u00a0years | 1,501.7 | 1,699.7 |
Total borrowings | 23,346.9 | 21,488.4 |
\u00a0
\u00a0
The carrying amounts of the Group\u2019s borrowings are denominated in the following currencies:
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Euro | 12,363.2 | 15,616.0 |
UK Pound | 5,056.9 | 2,389.8 |
Danish Krone | 1,026.4 | 625.7 |
Swedish Krona | 889.4 | 440.2 |
Norwegian Krona | 703.5 | 163.3 |
Turkish Lira | 11.4 | 0.3 |
Other currencies | 3,296.0 | 2,253.1 |
Total borrowings | 23,346.9 | 21,488.4 |
Within this \u00a0programme, the Group has the following outstanding bonds issued as at 31\u00a0December 2024:
Issued date | Maturity date | Amount (in million) | Rate |
|---|---|---|---|
ALD | |||
February\u00a02022 | March\u00a02026 | 700 | 1.250% |
July\u00a02022 | July\u00a02027 | 500 | 4.000% |
October\u00a02022 | October\u00a02025 | 750 | 4.750% |
January\u00a02023 | January\u00a02027 | 750 | 4.250% |
February\u00a02023 | February\u00a02025 | 500 | Euribor 3M +0.55 |
June\u00a02023 | February\u00a02025 | 600 | Euribor 3M +0.55 |
October\u00a02023 | October\u00a02025 | 1000 | Euribor 3M +0.65 |
October\u00a02023 | October\u00a02028 | 1000 | 4.875% |
November\u00a02023 | November\u00a02026 | 500 | 4.375% |
January\u00a02024 | January\u00a02031 | 500 | 4.000% |
January\u00a02024 | January\u00a02028 | 1000 | 3.875% |
February\u00a02024 | February\u00a02027 | 1000 | 3.875% |
March\u00a02024(1) | March\u00a02029 | 220 | 2.225% |
July\u00a02024 | July\u00a02029 | 750 | 3.875% |
LeasePlan\u00a0(2) | |||
April\u00a02020 | April\u00a02025 | 500 | 3.500% |
February\u00a02021 | February\u00a02026 | 1000 | 0.250% |
September\u00a02021 | September\u00a02026 | 1000 | 0.250% |
May\u00a02022 | May\u00a02025 | 750 | 2.130% |
(1) \u00a0Bond issue in Swiss Franc (CHF). (2) \u00a0Excluding private placements. |
\u00a0
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Less than 1\u00a0year | 4,243.2 | 1,975.6 |
1-5\u00a0years | 8,939.9 | 9,844.0 |
Over 5\u00a0years | 500.0 | 62.5 |
Total bonds | 13,683.0 | 11,882.1 |
\u00a0
\u00a0
The carrying amounts of the Group\u2019s bonds are denominated in the following currencies:
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Euro | 13,164.0 | 10,766.9 |
Norwegian Krona | 264.9 | 317.7 |
Other currencies | 254.1 | 797.4 |
Total bonds | 13,683.0 | 11,882.1 |
The following debt securities are currently issued:
Programme and special purpose company | Deal type | Country | Currency | Amount (in\u00a0million)\u00a0(1) | Set up/ |
|---|---|---|---|---|---|
ALD Funding Limited | Private | UK | GBP | 500 | February\u00a02023 |
Axus Finance SPRL | Private | Belgium | EUR | 401 | June\u00a02022 |
FCT Red & Black Auto Lease France 2 | Public | France | EUR | 390 | June\u00a02023 |
Bumper BE\u00a0NV/SA No.\u00a001 | Public | Belgium | EUR | 100 | October\u00a02021 |
Bumper FR 2022-1 FCT | Public | France | EUR | 197 | April\u00a02022 |
C_NL16\u00a0\u2013 Bumper NL 2023-1 BV | Public | Netherlands | EUR | 453 | September\u00a02023 |
Bumper NL 2024-1 BV | Public | Netherlands | EUR | 600 | September\u00a02024 |
C_NL17\u00a0\u2013 Axus Finance NL\u00a0BV | Private | Netherlands | EUR | 500 | June\u00a02023 |
Bumper DE\u00a0SA\u00a02023-1 | Public | Germany | EUR | 305 | February\u00a02023 |
|
\u00a0
The interest outstanding at the balance sheet date was EUR\u00a0225.1\u00a0million (2023: 135.8\u00a0million).
\u00a0
The maturity of the asset-backed securitisation programmes is as follows:
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Less than 1\u00a0year | 1,491.7 | 1,385.4 |
1-5\u00a0years | 2,060.2 | 2,870.9 |
Total securitisation programme | 3,552.0 | 4,256.2 |
\u00a0
\u00a0
The carrying amounts of the Group\u2019s asset-backed securitisation programmes are denominated in the following currencies:
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Euro | 2,949.0 | 3,730.0 |
UK Pound | 603.0 | 526.2 |
Total securitisation programme | 3,552.0 | 4,256.2 |
\u00a0
\u00a0
Securitisation programmes involve the sale of future lease instalment receivables and, in some cases, related residual value receivables originated by various Group\u00a0subsidiaries\u00a0to special purpose companies which are included in the consolidated financial statements of the Group. Debt securities were issued by these special purpose companies to finance these transactions. The special purpose companies are responsible for making interest and principal payments to the note holders. The Group continues to retain substantially all of the risks and rewards of the lease receivables as in all asset-backed securitisation programmes they subscribed to the first class of notes which will result in the Group bearing any realised losses. Therefore, the Group continues to recognise the transferred lease assets in their entirety.
(in EUR million) | Receivables from clients (finance and operating leases) | Cash collateral | Total |
|---|---|---|---|
At 31\u00a0December 2024 | \u00a0 | \u00a0 | \u00a0 |
Carrying amount of transferred assets | 4,648.0 | 66.7 | 4,714.7 |
Carrying amount of associated liabilities\u00a0(1) | \u00a0 | \u00a0 | (3,552.0) |
Net carrying amount position | \u00a0 | \u00a0 | 1,162.7 |
Fair value of transferred assets | 5,006.6 | 66.7 | 5,073.3 |
Fair value of associated liabilities\u00a0(1) | \u00a0 | \u00a0 | (3,552.0) |
Net fair value position as at 31\u00a0December 2024 | \u00a0 | \u00a0 | 1,521.3 |
At 31\u00a0December 2023 | \u00a0 | \u00a0 | \u00a0 |
Carrying amount of transferred assets | 6,061.8 | 69.3 | 6,131.1 |
Carrying amount of associated liabilities\u00a0(1) | \u00a0 | \u00a0 | (4,256.2) |
Net carrying amount position | \u00a0 | \u00a0 | 1,874.9 |
Fair value of transferred assets | 6,286.3 | 69.3 | 6,355.6 |
Fair value of associated liabilities\u00a0(1) | \u00a0 | \u00a0 | (4,256.2) |
Net fair value position as at 31\u00a0December 2023 | \u00a0 | \u00a0 | 2,099.4 |
|
\u00a0
\u00a0
Saving deposits raised by Ayvens Bank amount to EUR\u00a013.8\u00a0billion at 31\u00a0December 2024 of which 48.4% is deposited for a fixed term (2023: 31.7% at EUR\u00a011.8\u00a0billion). Savings deposits are raised by Ayvens Bank N.V. which holds a banking licence in the Netherlands. Ayvens Bank also operates on the German savings deposit market with a cross border offering from the Netherlands.
The maturity analysis of these deposits is as follows:
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Deposits\u00a0(1) | 13,767.4 | 11,729.2 |
Payables related to deposits | 123.2 | 55.5 |
Total | 13,890.6 | 11,784.7 |
of which: | \u00a0 | \u00a0 |
Less than 1\u00a0year | 5,984.0 | 7,743.2 |
1 -5\u00a0years | 7,906.5 | 3,925.0 |
Over 5\u00a0years | \u2212 | 116.6 |
|
\u00a0
The average interest rates on the outstanding balances of the fixed term savings deposits in original maturity terms are as follows:
\u00a0 | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Three months or less | 1.79% | 1.60% |
Longer than three months, less than a year | 3.04% | 2.71% |
Longer than a year, less than 5\u00a0years | 3.01% | 1.53% |
\u00a0
The interest of the on-demand accounts is set monthly. The interest outstanding at the balance sheet date was EUR\u00a0122.6\u00a0million (2023: EUR\u00a055.5\u00a0million).
\u00a0\u00a0
\u00a0
Refer to note 5.1 Financial risk factors, section Liquidity risk measurement, for an overview of the undrawn borrowing facilities.
\u00a0
A guarantee at first demand has been granted to ING Luxembourg for an amount of EUR\u00a050\u00a0million on behalf of Axus Luxembourg SA.
A guarantee has been granted to Stellantis\u00a0SA for an amount of EUR\u00a020\u00a0million on behalf of Fleetpool, under the condition negotiated in the frame of the distribution agreement concluded with this financial institution.
The Group has issued guarantees to the total value of EUR\u00a0324.4\u00a0million of which EUR\u00a0322.4\u00a0million is related to residual value guarantees issued to clients.
Changes in liabilities arising from financing activities are shown in the table below.
(in EUR million) | Balance as at 1\u00a0January 2024 | Financing cash flows | Interest accrued | Movement in\u00a0fair value | Foreign exchange adjustment | Scope changes | Other | Balance as at 31\u00a0December 2024 |
|---|---|---|---|---|---|---|---|---|
Overdraft | 315.3 | 266.8 | \u2212 | \u2212 | 0.4 | \u2212 | (14.9) | 567.6 |
Borrowings from financial institutions excl. overdraft | 21,173.1 | 752.9 | 133.9 | \u2212 | (44.5) | \u2212 | 763.8 | 22,779.2 |
Bonds and notes issued | 16,138.3 | 474.6 | 91.0 | 127.2 | (9.9) | 381.3 | 32.5 | 17,235.0 |
Deposits | 11,784.7 | 2,038.1 | 67.7 | \u2212 | \u2212 | \u2212 | \u2212 | 13,890.6 |
Lease liabilities | 252.3 | (54.9) | (5.9) | \u2212 | (1.0) | (0.1) | 37.4 | 227.9 |
\u00a0
(in EUR million) | Balance as at 1\u00a0January 2023 | Financing cash flows | Interest accrued | Movement in\u00a0fair value | Foreign exchange adjustment | Scope changes | Other | Balance as at 31\u00a0December 2023 |
|---|---|---|---|---|---|---|---|---|
Overdraft | 129.5 | 157.6 | \u2212 | \u2212 | 1.5 | 26.6 | \u2212 | 315.3 |
Borrowings from financial institutions excl. overdraft | 14,441.6 | 3,868.2 | 63.9 | \u2212 | 101.0 | 2,698.5 | \u2212 | 21,173.1 |
Bonds and notes issued | 5,303.4 | 1,366.3 | 68.8 | 68.2 | 12.2 | 9,319.3 | \u2212 | 16,138.3 |
Deposits | \u2212 | 451.9 | 31.2 | \u2212 | \u2212 | 11,301.7 | \u2212 | 11,784.7 |
Lease liabilities | 117.2 | (52.6) | (5.9) | \u2212 | 0.9 | 163.6 | 29.0 | 252.3 |
Borrowings and other financial liabilities, including debt securities issued and other borrowings, are initially measured at fair value, net of transaction costs. Borrowings and other financial liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis. The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period. Transaction costs are included in amortised cost using the effective interest method.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the effective interest rate (EIR). The EIR amortisation is included as finance costs in the income. For more information, refer to Note\u00a029 Borrowings from financial institutions, bonds and notes issued.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingsExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_9f340c5d-a620-4723-832e-e47787b119fc": { "value": "The Group measures financial instruments, such as derivatives, at fair value at each balance sheet date. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:
The principal or the most advantageous market must be accessible to the Group.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data is available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level of input that is significant to the fair value measurement as a whole.
The fair value of assets and liabilities is presented according to a fair value hierarchy that reflects the level of observability of the data used to make the valuations. The fair value hierarchy consists of the following levels:
For assets and liabilities that are recognised in the financial statements on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level of input that is significant to the fair value measurement as a whole) at the end of each reporting period.
The fair value of certain financial instruments is determined by using valuation techniques. The Group uses its judgement to select a variety of methods and make assumptions that are mainly based on market conditions existing at the end of each reporting period. The Group has used discounted cash flow analysis for various available-for-sale financial assets that are not traded in active markets. Such assets do not present material amounts in the financial statements.
\u00a0
For financial assets and liabilities which are traded on an active market, such as listed investments or listed debt instruments, fair value is determined by reference to market value. For non-traded financial assets and liabilities, fair value is calculated using discounted cash flows, considered to be reasonable and consistent with those that would be used by a market participant, and based on observable market data where available (for example forward exchange rate or interest rate), unless carrying value is considered to approximate fair value.
Where discounted cash flow models based on management\u2019s assumptions are used, the resulting fair value measurements are considered to be at level\u00a03 in the fair value hierarchy, as defined in IFRS\u00a013 Fair Value Measurement, as they depend to a significant extent on unobservable valuation inputs.
All derivatives that have been designated into hedge relationships have been separately disclosed.
The Company\u2019s financial assets and liabilities are categorised as below. Where the financial instrument does not include fair value information, it is due to the carrying amount being a reasonable approximation of fair value.
\u00a0
As at 31\u00a0December 2024 (in EUR million) | Fair Value | ||||
|---|---|---|---|---|---|
Carrying Value | Level\u00a01 | Level\u00a02 | Level\u00a03 | Total | |
Financial assets measured at FVTPL | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Derivative financial instruments in hedge | 54.3 | \u00a0 | 54.3 | \u00a0 | 54.3 |
Derivative financial instruments not in hedge | 79.2 | \u00a0 | 79.2 | \u00a0 | 79.2 |
Investment in equity securities | 19.4 | \u00a0 | \u00a0 | 19.4 | 19.4 |
Investment in debt securities | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u2212 |
Financial assets measured at FVOCI | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Investment in debt securities | 309.2 | 309.2 | \u00a0 | \u00a0 | 309.2 |
Financial assets measured at amortised cost | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cash and cash equivalents | 5,023.0 | \u00a0 | \u00a0 | \u00a0 | \u2212 |
Investment in debt securities | 96.8 | 97.2 | \u00a0 | \u00a0 | 97.2 |
Other financial instruments | 257.7 | \u00a0 | \u00a0 | \u00a0 | \u2212 |
Lease receivables from customers | 4,083.6 | \u00a0 | 4,083.6 | \u00a0 | 4,083.6 |
Total | 9,923.2 | 406.4 | 4,217.1 | 19.4 | 4,642.9 |
As at 31\u00a0December 2023 (in EUR million) | Fair Value | ||||
|---|---|---|---|---|---|
Carrying Value | Level\u00a01 | Level\u00a02 | Level\u00a03 | Total | |
Financial assets measured at FVTPL | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Derivative financial instruments in hedge | 26.7 | \u00a0 | 26.7 | \u00a0 | 26.7 |
Derivative financial instruments not in hedge | 356.5 | \u00a0 | 356.5 | \u00a0 | 356.5 |
Investment in equity securities | 35.0 | 19.6 | \u00a0 | 15.4 | 35.0 |
Financial assets measured at FVOCI | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Investment in debt securities | 245.5 | 245.5 | \u00a0 | \u00a0 | 245.5 |
Financial assets measured at amortised cost | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cash and cash equivalents | 3,997.0 | \u00a0 | \u00a0 | \u00a0 | \u2212 |
Investment in debt securities | 83.9 | 83.9 | \u00a0 | \u00a0 | 83.9 |
Other financial instruments | 646.8 | \u00a0 | \u00a0 | \u00a0 | \u2212 |
Lease receivables from customers | 4,530.7 | \u00a0 | 4,530.7 | \u2212 | 4,530.7 |
Receivables from credit and other institutions | 3,103.4 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Loans to associates and jointly controlled entities | 41.5 | \u00a0 | 41.5 | \u00a0 | 41.5 |
Total | 13,067.0 | 349.0 | 4,955.5 | 15.4 | 5,319.9 |
\u00a0
As at 31\u00a0December 2024 (in EUR million) | Fair Value | ||||
|---|---|---|---|---|---|
Carrying Value | Level\u00a01 | Level\u00a02 | Level\u00a03 | Total | |
Financial liabilities measured at FVTPL | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Derivative financial instruments in hedge | 30.9 | \u00a0 | 30.9 | \u00a0 | 30.9 |
Derivative financial instruments not in hedge | 228.5 | \u00a0 | 228.5 | \u00a0 | 228.5 |
Financial liabilities measured at amortised cost | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Trade payables | 6,024.5 | \u00a0 | 6,024.5 | \u2212 | 6,024.5 |
Deposits | 13,890.6 | \u00a0 | 13,842.6 | \u00a0 | 13,842.6 |
Borrowings from financial institutions | 23,346.9 | \u00a0 | 23,381.8 | \u2212 | 23,381.8 |
Bonds issued | 17,235.0 | 15,621.0 | 1,712.5 | \u2212 | 17,333.5 |
Total | 60,756.3 | 15,621.0 | 45,220.7 | \u2212 | 60,841.8 |
\u00a0
As at 31\u00a0December 2023 (in EUR million) | Fair Value | ||||
|---|---|---|---|---|---|
Carrying Value | Level\u00a01 | Level\u00a02 | Level\u00a03 | Total | |
Financial liabilities measured at FVTPL | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Derivative financial instruments in hedge | 103.4 | \u00a0 | 103.4 | \u00a0 | 103.4 |
Derivative financial instruments not in hedge | 542.4 | \u00a0 | 542.4 | \u00a0 | 542.4 |
Financial liabilities measured at amortised cost | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Trade and other payables | 6,106.7 | \u00a0 | 6,106.7 | \u2212 | 6,106.7 |
Deposits | 11,784.7 | \u00a0 | 11,822.4 | \u00a0 | 11,822.4 |
Borrowings from financial institutions | 21,488.4 | \u00a0 | 21,488.4 | \u2212 | 21,488.4 |
Bonds issued | 16,138.3 | 6,902.8 | 9,246.4 | \u00a0 | 16,149.2 |
Total | 56,163.9 | 6,902.8 | 49,309.7 | \u2212 | 56,212.5 |
Level\u00a01 \u2013 for the equity instruments measured at this level the Group has used the current bid price for the equity instrument in a quoted market while for financial asset debt securities the Group has used the quoted government bond price in an active market.
Level\u00a02\u00a0\u2013 loans to associates and jointly controlled entities have been fair valued using a discounted cashflow model using market observable inputs for the discount rate while the key inputs used in valuing the derivative hedge and hedging instruments are directly observable inputs including forward exchange rates, yield curves and spot rates. For details on lease receivables fair value measurement see Note\u00a022.
Level\u00a03 \u2013 the Group has an equity investment in Constellation Automotive Holdings S.a.r.l., where the discounted cashflow valuation model has a significant part of the inputs that are not market observable. Unobservable in this context means that there is little or no current market data available from which to derive a price that an unrelated, informed buyer would be expected to purchase the asset or liability.
For each level there has been no change to the valuation techniques used during the period. For financial instruments that are recognised at fair value on a recurring basis, the Group determines whether transfers have occurred between Levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting year. There were no transfers between the different levels during the current reporting or prior period.
Other financial assets and liabilities not measured at fair value have a carrying amount which is a reasonable approximation of fair value, due to being short-term in nature.
\u00a0
The movements in the fair value of the level\u00a03 financial assets and liabilities are shown as follows:
\u00a0
Level\u00a03 financial asset (in EUR million) | 2024 | 2023 |
|---|---|---|
At 1\u00a0January | 15.4 | \u2212 |
Change in scope | \u2212 | 16.4 |
Net profit/(loss) recorded in the income statement | 4.0 | (1.0) |
At 31\u00a0December | 19.4 | 15.4 |
The Group measures financial instruments, such as derivatives, at fair value at each balance sheet date. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:
The principal or the most advantageous market must be accessible to the Group.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data is available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level of input that is significant to the fair value measurement as a whole.
The fair value of assets and liabilities is presented according to a fair value hierarchy that reflects the level of observability of the data used to make the valuations. The fair value hierarchy consists of the following levels:
For assets and liabilities that are recognised in the financial statements on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level of input that is significant to the fair value measurement as a whole) at the end of each reporting period.
The fair value of certain financial instruments is determined by using valuation techniques. The Group uses its judgement to select a variety of methods and make assumptions that are mainly based on market conditions existing at the end of each reporting period. The Group has used discounted cash flow analysis for various available-for-sale financial assets that are not traded in active markets. Such assets do not present material amounts in the financial statements.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFairValueMeasurementExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_411d65d4-f071-4448-9d54-ba239c791d51": { "value": "The Group measures financial instruments, such as derivatives, at fair value at each balance sheet date. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:
The principal or the most advantageous market must be accessible to the Group.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data is available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level of input that is significant to the fair value measurement as a whole.
The fair value of assets and liabilities is presented according to a fair value hierarchy that reflects the level of observability of the data used to make the valuations. The fair value hierarchy consists of the following levels:
For assets and liabilities that are recognised in the financial statements on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level of input that is significant to the fair value measurement as a whole) at the end of each reporting period.
\u00a0
For financial assets and liabilities which are traded on an active market, such as listed investments or listed debt instruments, fair value is determined by reference to market value. For non-traded financial assets and liabilities, fair value is calculated using discounted cash flows, considered to be reasonable and consistent with those that would be used by a market participant, and based on observable market data where available (for example forward exchange rate or interest rate), unless carrying value is considered to approximate fair value.
Where discounted cash flow models based on management\u2019s assumptions are used, the resulting fair value measurements are considered to be at level\u00a03 in the fair value hierarchy, as defined in IFRS\u00a013 Fair Value Measurement, as they depend to a significant extent on unobservable valuation inputs.
All derivatives that have been designated into hedge relationships have been separately disclosed.
The Company\u2019s financial assets and liabilities are categorised as below. Where the financial instrument does not include fair value information, it is due to the carrying amount being a reasonable approximation of fair value.
\u00a0
As at 31\u00a0December 2024 (in EUR million) | Fair Value | ||||
|---|---|---|---|---|---|
Carrying Value | Level\u00a01 | Level\u00a02 | Level\u00a03 | Total | |
Financial assets measured at FVTPL | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Derivative financial instruments in hedge | 54.3 | \u00a0 | 54.3 | \u00a0 | 54.3 |
Derivative financial instruments not in hedge | 79.2 | \u00a0 | 79.2 | \u00a0 | 79.2 |
Investment in equity securities | 19.4 | \u00a0 | \u00a0 | 19.4 | 19.4 |
Investment in debt securities | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u2212 |
Financial assets measured at FVOCI | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Investment in debt securities | 309.2 | 309.2 | \u00a0 | \u00a0 | 309.2 |
Financial assets measured at amortised cost | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cash and cash equivalents | 5,023.0 | \u00a0 | \u00a0 | \u00a0 | \u2212 |
Investment in debt securities | 96.8 | 97.2 | \u00a0 | \u00a0 | 97.2 |
Other financial instruments | 257.7 | \u00a0 | \u00a0 | \u00a0 | \u2212 |
Lease receivables from customers | 4,083.6 | \u00a0 | 4,083.6 | \u00a0 | 4,083.6 |
Total | 9,923.2 | 406.4 | 4,217.1 | 19.4 | 4,642.9 |
As at 31\u00a0December 2023 (in EUR million) | Fair Value | ||||
|---|---|---|---|---|---|
Carrying Value | Level\u00a01 | Level\u00a02 | Level\u00a03 | Total | |
Financial assets measured at FVTPL | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Derivative financial instruments in hedge | 26.7 | \u00a0 | 26.7 | \u00a0 | 26.7 |
Derivative financial instruments not in hedge | 356.5 | \u00a0 | 356.5 | \u00a0 | 356.5 |
Investment in equity securities | 35.0 | 19.6 | \u00a0 | 15.4 | 35.0 |
Financial assets measured at FVOCI | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Investment in debt securities | 245.5 | 245.5 | \u00a0 | \u00a0 | 245.5 |
Financial assets measured at amortised cost | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cash and cash equivalents | 3,997.0 | \u00a0 | \u00a0 | \u00a0 | \u2212 |
Investment in debt securities | 83.9 | 83.9 | \u00a0 | \u00a0 | 83.9 |
Other financial instruments | 646.8 | \u00a0 | \u00a0 | \u00a0 | \u2212 |
Lease receivables from customers | 4,530.7 | \u00a0 | 4,530.7 | \u2212 | 4,530.7 |
Receivables from credit and other institutions | 3,103.4 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Loans to associates and jointly controlled entities | 41.5 | \u00a0 | 41.5 | \u00a0 | 41.5 |
Total | 13,067.0 | 349.0 | 4,955.5 | 15.4 | 5,319.9 |
\u00a0
As at 31\u00a0December 2024 (in EUR million) | Fair Value | ||||
|---|---|---|---|---|---|
Carrying Value | Level\u00a01 | Level\u00a02 | Level\u00a03 | Total | |
Financial liabilities measured at FVTPL | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Derivative financial instruments in hedge | 30.9 | \u00a0 | 30.9 | \u00a0 | 30.9 |
Derivative financial instruments not in hedge | 228.5 | \u00a0 | 228.5 | \u00a0 | 228.5 |
Financial liabilities measured at amortised cost | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Trade payables | 6,024.5 | \u00a0 | 6,024.5 | \u2212 | 6,024.5 |
Deposits | 13,890.6 | \u00a0 | 13,842.6 | \u00a0 | 13,842.6 |
Borrowings from financial institutions | 23,346.9 | \u00a0 | 23,381.8 | \u2212 | 23,381.8 |
Bonds issued | 17,235.0 | 15,621.0 | 1,712.5 | \u2212 | 17,333.5 |
Total | 60,756.3 | 15,621.0 | 45,220.7 | \u2212 | 60,841.8 |
\u00a0
As at 31\u00a0December 2023 (in EUR million) | Fair Value | ||||
|---|---|---|---|---|---|
Carrying Value | Level\u00a01 | Level\u00a02 | Level\u00a03 | Total | |
Financial liabilities measured at FVTPL | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Derivative financial instruments in hedge | 103.4 | \u00a0 | 103.4 | \u00a0 | 103.4 |
Derivative financial instruments not in hedge | 542.4 | \u00a0 | 542.4 | \u00a0 | 542.4 |
Financial liabilities measured at amortised cost | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Trade and other payables | 6,106.7 | \u00a0 | 6,106.7 | \u2212 | 6,106.7 |
Deposits | 11,784.7 | \u00a0 | 11,822.4 | \u00a0 | 11,822.4 |
Borrowings from financial institutions | 21,488.4 | \u00a0 | 21,488.4 | \u2212 | 21,488.4 |
Bonds issued | 16,138.3 | 6,902.8 | 9,246.4 | \u00a0 | 16,149.2 |
Total | 56,163.9 | 6,902.8 | 49,309.7 | \u2212 | 56,212.5 |
Level\u00a01 \u2013 for the equity instruments measured at this level the Group has used the current bid price for the equity instrument in a quoted market while for financial asset debt securities the Group has used the quoted government bond price in an active market.
Level\u00a02\u00a0\u2013 loans to associates and jointly controlled entities have been fair valued using a discounted cashflow model using market observable inputs for the discount rate while the key inputs used in valuing the derivative hedge and hedging instruments are directly observable inputs including forward exchange rates, yield curves and spot rates. For details on lease receivables fair value measurement see Note\u00a022.
Level\u00a03 \u2013 the Group has an equity investment in Constellation Automotive Holdings S.a.r.l., where the discounted cashflow valuation model has a significant part of the inputs that are not market observable. Unobservable in this context means that there is little or no current market data available from which to derive a price that an unrelated, informed buyer would be expected to purchase the asset or liability.
For each level there has been no change to the valuation techniques used during the period. For financial instruments that are recognised at fair value on a recurring basis, the Group determines whether transfers have occurred between Levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting year. There were no transfers between the different levels during the current reporting or prior period.
Other financial assets and liabilities not measured at fair value have a carrying amount which is a reasonable approximation of fair value, due to being short-term in nature.
\u00a0
The movements in the fair value of the level\u00a03 financial assets and liabilities are shown as follows:
\u00a0
Level\u00a03 financial asset (in EUR million) | 2024 | 2023 |
|---|---|---|
At 1\u00a0January | 15.4 | \u2212 |
Change in scope | \u2212 | 16.4 |
Net profit/(loss) recorded in the income statement | 4.0 | (1.0) |
At 31\u00a0December | 19.4 | 15.4 |
In order to hedge its exposure to foreign exchange and interest rate, the Group enters into forward, option and swap contracts. None of these contracts meet the own use exemption in IFRS\u00a09 and are accounted for as derivatives. Derivatives are financial instruments, of which the value changes in response to underlying variables. Derivative instruments are used as part of the overall strategy to manage exposure to market risks primarily associated with fluctuations in interest rates and foreign exchange rates through interest rate and currency swaps respectively. As a matter of policy, derivatives are not used for speculative purposes. The Group documents at the inception of the transaction the relationship between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedging transactions. The Group also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items.
Derivatives are initially recognised at fair value on the date a derivative contract is entered into (trade date) and are subsequently re-measured at their fair value. The method of recognising the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged. The fair value of cross currency and interest rate swaps is the estimated amount that the Group would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The fair values of not-actively traded instruments are calculated using a generally accepted discounted cash flow method, while considering relevant market observable data such as quoted forward prices and interest rates. As a result of having collateral agreements in place for certain of its derivative counterparts, the requirement to reflect other observable market inputs such as CVA, DVA and FVA is eliminated for discounting purposes. The fair values of various derivative instruments used for hedging purposes are disclosed in Note\u00a026. Movements on the hedging reserve in other comprehensive income are shown in consolidated statement of changes in equity. The fair value of a hedging derivative is classified as a non-current asset or liability when the remaining hedged item is more than 12\u00a0months and as a current asset or liability when the remaining maturity of the hedged item is less than 12\u00a0months.
Changes in the fair value of derivative financial instruments that are designated and effective as hedges of future cash flows (cash flow hedges) are recognised directly in equity through Other Comprehensive Income. The gain or loss relating to the ineffective portion is recognised immediately in the income statement within \u201cunrealised gains/losses on financial instruments\u201d. If the cash flow hedge of a firm commitment or future transaction results in the recognition of a non-financial asset or liability, then, at the time the asset or liability is recognised, the associated gains or losses on the derivative that had previously been recognised in equity are included in the initial measurement of the asset or liability. For hedges that do not result in the recognition of a non-financial asset or liability, including the effective portion of interest rate swaps hedging variable rate borrowings, amounts deferred in equity are recognised in the income statement in the same period in which the hedged item affects profit or loss.
The Group only applies fair value hedge accounting for hedging fixed interest risk on borrowings. For an effective hedge of an exposure to changes in fair value, the hedged item is adjusted for changes in fair value attributable to the risk being hedged. The corresponding entry and gains or losses arising from remeasuring the associated derivative are recognised in the income statement within \u201cunrealised gains/losses on financial instruments\u201d. Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the hedged item and hedging instrument. The Group\u2019s material hedging instruments are interest rate swaps and cross currency swaps that have similar critical terms to the related debt instruments, such as payment dates, maturities and notional amount. As all critical terms matched during the year, there was no material hedge ineffectiveness. The Group also uses cross currency swaps to manage foreign exchange risk associated with borrowings denominated in foreign currencies. Where not designated in an accounting hedge there is a natural offset against foreign exchange movements on associated borrowings.
Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, exercised, revoked, or no longer qualifies for hedge accounting. At that time, any cumulative gain or loss on the hedging instrument recognised in equity is retained until the forecast transaction occurs. If a hedge transaction is no longer expected to occur, the net cumulative gain or loss previously recognised in equity is recycled to the income statement for the period. Changes in the fair value of any derivative instruments that are not designated in a hedge relationship are recognised immediately in the income statement within \u201cUnrealised gains/(losses) on financial instruments\u201d.
Derivatives embedded in other financial instruments or non-financial host contracts (other than financial assets in the scope of IFRS\u00a09) are treated as separate derivatives when their risks and characteristics are not closely related to those of their host contracts and the host contracts themselves are not carried at fair value with unrealised gains or losses reported in the income statement. Derivatives embedded in contracts which are financial assets in the scope of IFRS\u00a09 are not separated and the whole contract is accounted for at either amortised cost or fair value.
The types of risks that the Group is exposed to and derivatives used to hedge these risks can be found in Note\u00a05.1 Financial risk factors and Note\u00a019 Derivative financial instruments.
Derivative instruments that are measured at fair value on a recurring basis are included in the caption \u201cDerivative financial instruments\u201d in the consolidated balance sheet and are made up as follows:
(in EUR million) | Year ended 31\u00a0December 2024 | Year ended 31\u00a0December 2023 | ||||
|---|---|---|---|---|---|---|
Notional amounts | Assets | Liabilities | Notional amounts | Assets | Liabilities | |
Cash flow hedges | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |
Interest rate swaps | 3,892.7 | 9.4 | 17.8 | 2,999.4 | 24.1 | 11.5 |
Foreign Exchange swaps | 492.6 | 44.8 | 13.0 | 519.4 | 2.7 | 91.9 |
Total Derivatives in hedge | 4,385.3 | 54.3 | 30.9 | 3,518.8 | 26.7 | 103.4 |
Interest rate swaps | 18,499.6 | 77.0 | 210.3 | 31,332.8 | 235.3 | 392.1 |
Foreign exchange swaps | 609.5 | 2.3 | 18.2 | 4,042.9 | 121.2 | 150.3 |
Total Derivatives not in hedge | 19,109.0 | 79.2 | 228.5 | 35,375.7 | 356.5 | 542.4 |
Total | 23,494.3 | 133.5 | 259.4 | 38,894.5 | 383.3 | 645.8 |
Less non-current portion: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | |
Interest rate swaps\u00a0\u2013 hedged | \u00a0 | 5.1 | 17.8 | \u00a0 | 24.1 | 11.5 |
Foreign exchange swaps\u00a0\u2013 hedged | \u00a0 | 27.1 | 3.2 | \u00a0 | 2.2 | 52.2 |
Interest rate swaps\u00a0\u2013 not hedged | \u00a0 | 43.7 | 181.9 | \u00a0 | 157.2 | 353.4 |
Foreign exchange swaps\u00a0\u2013 not hedged | \u00a0 | 2.3 | 0.8 | \u00a0 | 43.1 | 54.6 |
Total non-current portion | \u00a0 | 78.1 | 203.8 | \u00a0 | 226.6 | 471.7 |
Current portion | \u00a0 | 55.4 | 55.5 | \u00a0 | 156.6 | 174.1 |
\u00a0
Upon the acquisition of LeasePlan, fair value hedging was in place (through the use of interest rate swaps) as part of the Treasury risk management policy to mitigate exposure to changes in fair value of recognised liabilities, driven by the impact of the interest rate risk component of debt capital market transactions (publicly issued fixed rate bonds). As part of a periodic review of hedging strategy to comply with risk objectives, the Group decided to revoke these fair value hedge designations on 1\u00a0October 2023. Before de-designation any fair value changes were recognised in the income line item \u201cUnrealised gains/losses on financial instruments and other\u201d and the amortisation of the impact on de-designation, that will be smoothened over the residual lifetime of the debt are included in the same income statement line item, and amounted to EUR\u00a0-127\u00a0million for the year ending 31\u00a0December 2024 (2023: EUR\u00a0-38\u00a0million).
\u00a0
The impact on the income statement of derivatives is summarised below:
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Derivatives not in hedges | 45.5 | (152.0) |
Hedge ineffectiveness\u00a0\u2013 fair value hedges | (127.2) | (35.5) |
\u00a0of which: | \u00a0 | \u00a0 |
\u00a0Hedging instruments fair value movement | \u2212 | 32.7 |
\u00a0Financial liabilities fair value movement | (127.2) | (68.2) |
Hedge ineffectiveness\u00a0\u2013 cash flow hedges | 1.0 | 1.5 |
Unrealised gains/(losses) on derivative financial instruments | (80.6) | (186.0) |
In order to hedge its exposure to foreign exchange and interest rate, the Group enters into forward, option and swap contracts. None of these contracts meet the own use exemption in IFRS\u00a09 and are accounted for as derivatives. Derivatives are financial instruments, of which the value changes in response to underlying variables. Derivative instruments are used as part of the overall strategy to manage exposure to market risks primarily associated with fluctuations in interest rates and foreign exchange rates through interest rate and currency swaps respectively. As a matter of policy, derivatives are not used for speculative purposes. The Group documents at the inception of the transaction the relationship between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedging transactions. The Group also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items.
Derivatives are initially recognised at fair value on the date a derivative contract is entered into (trade date) and are subsequently re-measured at their fair value. The method of recognising the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged. The fair value of cross currency and interest rate swaps is the estimated amount that the Group would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The fair values of not-actively traded instruments are calculated using a generally accepted discounted cash flow method, while considering relevant market observable data such as quoted forward prices and interest rates. As a result of having collateral agreements in place for certain of its derivative counterparts, the requirement to reflect other observable market inputs such as CVA, DVA and FVA is eliminated for discounting purposes. The fair values of various derivative instruments used for hedging purposes are disclosed in Note\u00a026. Movements on the hedging reserve in other comprehensive income are shown in consolidated statement of changes in equity. The fair value of a hedging derivative is classified as a non-current asset or liability when the remaining hedged item is more than 12\u00a0months and as a current asset or liability when the remaining maturity of the hedged item is less than 12\u00a0months.
Changes in the fair value of derivative financial instruments that are designated and effective as hedges of future cash flows (cash flow hedges) are recognised directly in equity through Other Comprehensive Income. The gain or loss relating to the ineffective portion is recognised immediately in the income statement within \u201cunrealised gains/losses on financial instruments\u201d. If the cash flow hedge of a firm commitment or future transaction results in the recognition of a non-financial asset or liability, then, at the time the asset or liability is recognised, the associated gains or losses on the derivative that had previously been recognised in equity are included in the initial measurement of the asset or liability. For hedges that do not result in the recognition of a non-financial asset or liability, including the effective portion of interest rate swaps hedging variable rate borrowings, amounts deferred in equity are recognised in the income statement in the same period in which the hedged item affects profit or loss.
The Group only applies fair value hedge accounting for hedging fixed interest risk on borrowings. For an effective hedge of an exposure to changes in fair value, the hedged item is adjusted for changes in fair value attributable to the risk being hedged. The corresponding entry and gains or losses arising from remeasuring the associated derivative are recognised in the income statement within \u201cunrealised gains/losses on financial instruments\u201d. Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the hedged item and hedging instrument. The Group\u2019s material hedging instruments are interest rate swaps and cross currency swaps that have similar critical terms to the related debt instruments, such as payment dates, maturities and notional amount. As all critical terms matched during the year, there was no material hedge ineffectiveness. The Group also uses cross currency swaps to manage foreign exchange risk associated with borrowings denominated in foreign currencies. Where not designated in an accounting hedge there is a natural offset against foreign exchange movements on associated borrowings.
Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, exercised, revoked, or no longer qualifies for hedge accounting. At that time, any cumulative gain or loss on the hedging instrument recognised in equity is retained until the forecast transaction occurs. If a hedge transaction is no longer expected to occur, the net cumulative gain or loss previously recognised in equity is recycled to the income statement for the period. Changes in the fair value of any derivative instruments that are not designated in a hedge relationship are recognised immediately in the income statement within \u201cUnrealised gains/(losses) on financial instruments\u201d.
Derivatives embedded in other financial instruments or non-financial host contracts (other than financial assets in the scope of IFRS\u00a09) are treated as separate derivatives when their risks and characteristics are not closely related to those of their host contracts and the host contracts themselves are not carried at fair value with unrealised gains or losses reported in the income statement. Derivatives embedded in contracts which are financial assets in the scope of IFRS\u00a09 are not separated and the whole contract is accounted for at either amortised cost or fair value.
The types of risks that the Group is exposed to and derivatives used to hedge these risks can be found in Note\u00a05.1 Financial risk factors and Note\u00a019 Derivative financial instruments.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsAndHedgingExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_1e155c9a-280d-401f-b661-66e3c5349a48": { "value": "In order to hedge its exposure to foreign exchange and interest rate, the Group enters into forward, option and swap contracts. None of these contracts meet the own use exemption in IFRS\u00a09 and are accounted for as derivatives. Derivatives are financial instruments, of which the value changes in response to underlying variables. Derivative instruments are used as part of the overall strategy to manage exposure to market risks primarily associated with fluctuations in interest rates and foreign exchange rates through interest rate and currency swaps respectively. As a matter of policy, derivatives are not used for speculative purposes. The Group documents at the inception of the transaction the relationship between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedging transactions. The Group also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items.
Derivatives are initially recognised at fair value on the date a derivative contract is entered into (trade date) and are subsequently re-measured at their fair value. The method of recognising the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged. The fair value of cross currency and interest rate swaps is the estimated amount that the Group would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The fair values of not-actively traded instruments are calculated using a generally accepted discounted cash flow method, while considering relevant market observable data such as quoted forward prices and interest rates. As a result of having collateral agreements in place for certain of its derivative counterparts, the requirement to reflect other observable market inputs such as CVA, DVA and FVA is eliminated for discounting purposes. The fair values of various derivative instruments used for hedging purposes are disclosed in Note\u00a026. Movements on the hedging reserve in other comprehensive income are shown in consolidated statement of changes in equity. The fair value of a hedging derivative is classified as a non-current asset or liability when the remaining hedged item is more than 12\u00a0months and as a current asset or liability when the remaining maturity of the hedged item is less than 12\u00a0months.
Changes in the fair value of derivative financial instruments that are designated and effective as hedges of future cash flows (cash flow hedges) are recognised directly in equity through Other Comprehensive Income. The gain or loss relating to the ineffective portion is recognised immediately in the income statement within \u201cunrealised gains/losses on financial instruments\u201d. If the cash flow hedge of a firm commitment or future transaction results in the recognition of a non-financial asset or liability, then, at the time the asset or liability is recognised, the associated gains or losses on the derivative that had previously been recognised in equity are included in the initial measurement of the asset or liability. For hedges that do not result in the recognition of a non-financial asset or liability, including the effective portion of interest rate swaps hedging variable rate borrowings, amounts deferred in equity are recognised in the income statement in the same period in which the hedged item affects profit or loss.
The Group only applies fair value hedge accounting for hedging fixed interest risk on borrowings. For an effective hedge of an exposure to changes in fair value, the hedged item is adjusted for changes in fair value attributable to the risk being hedged. The corresponding entry and gains or losses arising from remeasuring the associated derivative are recognised in the income statement within \u201cunrealised gains/losses on financial instruments\u201d. Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the hedged item and hedging instrument. The Group\u2019s material hedging instruments are interest rate swaps and cross currency swaps that have similar critical terms to the related debt instruments, such as payment dates, maturities and notional amount. As all critical terms matched during the year, there was no material hedge ineffectiveness. The Group also uses cross currency swaps to manage foreign exchange risk associated with borrowings denominated in foreign currencies. Where not designated in an accounting hedge there is a natural offset against foreign exchange movements on associated borrowings.
Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, exercised, revoked, or no longer qualifies for hedge accounting. At that time, any cumulative gain or loss on the hedging instrument recognised in equity is retained until the forecast transaction occurs. If a hedge transaction is no longer expected to occur, the net cumulative gain or loss previously recognised in equity is recycled to the income statement for the period. Changes in the fair value of any derivative instruments that are not designated in a hedge relationship are recognised immediately in the income statement within \u201cUnrealised gains/(losses) on financial instruments\u201d.
Derivatives embedded in other financial instruments or non-financial host contracts (other than financial assets in the scope of IFRS\u00a09) are treated as separate derivatives when their risks and characteristics are not closely related to those of their host contracts and the host contracts themselves are not carried at fair value with unrealised gains or losses reported in the income statement. Derivatives embedded in contracts which are financial assets in the scope of IFRS\u00a09 are not separated and the whole contract is accounted for at either amortised cost or fair value.
The types of risks that the Group is exposed to and derivatives used to hedge these risks can be found in Note\u00a05.1 Financial risk factors and Note\u00a019 Derivative financial instruments.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_70193332-3797-4b5f-bfd4-4746a8b56108": { "value": "In order to hedge its exposure to foreign exchange and interest rate, the Group enters into forward, option and swap contracts. None of these contracts meet the own use exemption in IFRS\u00a09 and are accounted for as derivatives. Derivatives are financial instruments, of which the value changes in response to underlying variables. Derivative instruments are used as part of the overall strategy to manage exposure to market risks primarily associated with fluctuations in interest rates and foreign exchange rates through interest rate and currency swaps respectively. As a matter of policy, derivatives are not used for speculative purposes. The Group documents at the inception of the transaction the relationship between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedging transactions. The Group also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items.
Derivatives are initially recognised at fair value on the date a derivative contract is entered into (trade date) and are subsequently re-measured at their fair value. The method of recognising the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged. The fair value of cross currency and interest rate swaps is the estimated amount that the Group would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The fair values of not-actively traded instruments are calculated using a generally accepted discounted cash flow method, while considering relevant market observable data such as quoted forward prices and interest rates. As a result of having collateral agreements in place for certain of its derivative counterparts, the requirement to reflect other observable market inputs such as CVA, DVA and FVA is eliminated for discounting purposes. The fair values of various derivative instruments used for hedging purposes are disclosed in Note\u00a026. Movements on the hedging reserve in other comprehensive income are shown in consolidated statement of changes in equity. The fair value of a hedging derivative is classified as a non-current asset or liability when the remaining hedged item is more than 12\u00a0months and as a current asset or liability when the remaining maturity of the hedged item is less than 12\u00a0months.
Changes in the fair value of derivative financial instruments that are designated and effective as hedges of future cash flows (cash flow hedges) are recognised directly in equity through Other Comprehensive Income. The gain or loss relating to the ineffective portion is recognised immediately in the income statement within \u201cunrealised gains/losses on financial instruments\u201d. If the cash flow hedge of a firm commitment or future transaction results in the recognition of a non-financial asset or liability, then, at the time the asset or liability is recognised, the associated gains or losses on the derivative that had previously been recognised in equity are included in the initial measurement of the asset or liability. For hedges that do not result in the recognition of a non-financial asset or liability, including the effective portion of interest rate swaps hedging variable rate borrowings, amounts deferred in equity are recognised in the income statement in the same period in which the hedged item affects profit or loss.
The Group only applies fair value hedge accounting for hedging fixed interest risk on borrowings. For an effective hedge of an exposure to changes in fair value, the hedged item is adjusted for changes in fair value attributable to the risk being hedged. The corresponding entry and gains or losses arising from remeasuring the associated derivative are recognised in the income statement within \u201cunrealised gains/losses on financial instruments\u201d. Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the hedged item and hedging instrument. The Group\u2019s material hedging instruments are interest rate swaps and cross currency swaps that have similar critical terms to the related debt instruments, such as payment dates, maturities and notional amount. As all critical terms matched during the year, there was no material hedge ineffectiveness. The Group also uses cross currency swaps to manage foreign exchange risk associated with borrowings denominated in foreign currencies. Where not designated in an accounting hedge there is a natural offset against foreign exchange movements on associated borrowings.
Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, exercised, revoked, or no longer qualifies for hedge accounting. At that time, any cumulative gain or loss on the hedging instrument recognised in equity is retained until the forecast transaction occurs. If a hedge transaction is no longer expected to occur, the net cumulative gain or loss previously recognised in equity is recycled to the income statement for the period. Changes in the fair value of any derivative instruments that are not designated in a hedge relationship are recognised immediately in the income statement within \u201cUnrealised gains/(losses) on financial instruments\u201d.
Derivatives embedded in other financial instruments or non-financial host contracts (other than financial assets in the scope of IFRS\u00a09) are treated as separate derivatives when their risks and characteristics are not closely related to those of their host contracts and the host contracts themselves are not carried at fair value with unrealised gains or losses reported in the income statement. Derivatives embedded in contracts which are financial assets in the scope of IFRS\u00a09 are not separated and the whole contract is accounted for at either amortised cost or fair value.
The types of risks that the Group is exposed to and derivatives used to hedge these risks can be found in Note\u00a05.1 Financial risk factors and Note\u00a019 Derivative financial instruments.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForHedgingExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_2b1bda0a-b1c3-40d9-8db0-f726142d1124": { "value": "Inventories are vehicle assets held for sale from the ordinary course of business. Inventories are measured at the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses. Valuation allowances on inventories are included in \u201cCost of cars sold\u201d. Upon termination of the lease or rental contract the relevant assets are reclassified from the caption \u201cRental fleet\u201d to the caption \u201cInventories\u201d at their carrying amount, subject to an impairment review, if the intention is to sell the car rather than lease for another term, the car is not further depreciated.
Other than vehicle inventory assets the Group maintain a certain level of parts for vehicles, gasoline and other accessories for the vehicles that are consumed and used as part of the generation of service revenues for the Group.
\u00a0
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Inventories\u00a0\u2013 gross value | 898.8 | 832.4 |
Valuation allowance | (56.1) | (25.8) |
Inventories net | 842.7 | 806.6 |
\u00a0
Inventories are stated at the lower of cost or net realisable value. The allowance represents the impact of the write down to the lower net realisable value for vehicle inventories on transfer from Rental fleet or if held for over 90\u00a0days.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInventoriesExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_3aa0a61b-0c4d-4de3-83b4-7b8acaaf5d0c": { "value": "Inventories are vehicle assets held for sale from the ordinary course of business. Inventories are measured at the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses. Valuation allowances on inventories are included in \u201cCost of cars sold\u201d. Upon termination of the lease or rental contract the relevant assets are reclassified from the caption \u201cRental fleet\u201d to the caption \u201cInventories\u201d at their carrying amount, subject to an impairment review, if the intention is to sell the car rather than lease for another term, the car is not further depreciated.
Other than vehicle inventory assets the Group maintain a certain level of parts for vehicles, gasoline and other accessories for the vehicles that are consumed and used as part of the generation of service revenues for the Group.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForMeasuringInventories", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_5641e2c8-b55f-4d27-83b4-cb6f10a4ff8a": { "value": "An expected credit loss (ECL) provision is applied to all receivables from customers that are measured at amortised cost with the exception of those receivables deemed to be out of scope. The Group have applied this scope exemption when the receivable meets the low credit risk exemption criteria. The Group has applied this to receivables on used car sales and insurance receivables, where there is zero or almost no history of credit risk or the amounts due are from financial institutions with an investment grade credit rating.
For the other receivables from customers former LeasePlan entities have aligned with existing ALD policies as of May\u00a02024. Overall, the Group segments the receivables from customers into sound and doubtful receivables that includes receivables that have met the definition of default. For sound receivables the Group applies a simplified approach in calculating ECLs from initial recognition of the receivable, which means the Group does not track changes in significant increase in credit risk but instead recognises a loss allowance based on lifetime ECLs at each reporting date.
The Group has established a provision matrix for the sound receivables that is based on its historical credit loss experience by ageing categories, adjusted for forward-looking factors specific to the debtors and the economic environment when the impact of those factors is material to the financial statements. To establish the forward-looking element of IFRS\u00a09 provision, the Group uses macroeconomic data and analysis through local uplifts to probability of default and loss given default rates.
Since obtaining the financial holding status, the Group has aligned its definition of default to the ECB Regulatory Capital CRR Article\u00a0178 definition of default in 2023. This change applies to historic ALD entities only as LeasePlan entities were already aligned with the Article\u00a0178 definition of default due to holding a banking licence prior to the acquisition. For purposes of assessing, recognising and reporting defaults, a customer shall be considered to be in default when either one or both of the following events occur:
The application of the above guidance is only to the extent of identifying the customers that are in default. There is no change in the method of determining the value of impairment. Where the customer is in default, the whole of the customer balance is classified as doubtful, and impairment is based upon the full outstanding amount, except where we have adjudged there are mitigating circumstances.\u00a0
Alignment of LeasePlan entities with the Ayvens methodology increased the IFRS 9 provisions by EUR\u00a017.5\u00a0million as part of the purchase price allocation. Main driver of that increase is the provisioning of 100% for receivables from customers past due more than 90 consecutive days on any material credit obligation. The subsequent increase (EUR\u00a05.9\u00a0million) was accounted for as cost of risk in Q1 2024.
Expected credit losses are reassessed at each reporting date and reflect all reasonable information that is available at the reporting date. Judgement is required from management for applying appropriate models and setting assumptions for the measurement of ECL. The methodology, assumptions and data, including any forecasts of future economic conditions, macroeconomic impacts and the Group\u2019s provision matrix are reviewed regularly by management in determining the expected credit losses and the write-off of receivables. Doubtful debts should be written off as soon as the definitive loss is known.
Where the Group have acquired credit-impaired receivables from customers as part of a business combination, the gross receivable is initial recognised at fair value with no carrying impairment allowance. The Group only recognises the cumulative changes in lifetime expected credit losses since initial recognition as a loss allowance for originated purchased credit-impaired financial assets in the income statement.
Disputes often arise in the collection of lease receivables and tend to range from issues relating to the performance of various services under the contract to the amount of end-of-contract billing. A dispute has no impact on the solvency of the customer or the risk of default, and therefore is not a credit loss. As such these amounts are removed from sound receivables and a provision is applied based on our provisions accounting policy. For presentation purposes the provision is netted against the \u201cReceivables from customers\u201d balance sheet line item.
Details about the assumptions and estimation techniques used in measuring ECL for finance lease receivables and trade receivables from operating lease contracts are provided in the section Credit risk management and disclosure on the impairment provided in Note\u00a022 Lease receivables from customers.
Details about the methodology in measuring ECL for finance lease receivables and trade receivables from operating lease contracts are provided in Note\u00a022 Lease receivables from customers. Expected credit losses are reassessed at each reporting date and reflect all reasonable information that is available at the reporting date. Judgement is required from management for applying appropriate models and setting assumptions for the measurement of ECL. The methodology, assumptions and data, including any forecasts of future economic conditions, macroeconomic impacts and the Group\u2019s provision matrix are reviewed regularly by management in determining the expected credit losses and the write-off of receivables.
Credit risk refers to the risk of losses resulting from the inability of Group customers, issuers or other counterparties to meet their financial commitments. Credit risk may be aggravated by concentration risk, resulting from a high exposure to a given risk or to one or more counterparties, or to one or more groups of similar counterparties. In addition to the risk of lessees not making payments for the leased vehicles, the Group is exposed to credit risk originating from its banking and treasury activities, which includes deposits and investments placed with financial institutions and hedging instruments, such as derivatives, as well as from its remarketing and reinsurance activities. The Group\u2019s maximum exposure to credit risk primarily arises from these financial assets and is as follows:
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Cash and cash equivalents | 5,023.0 | 3,997.0 |
Lease receivables from clients | 4,083.6 | 4,530.7 |
Other receivables, prepayments and contract assets\u00a0(1) | 1,373.5 | 1,217.0 |
Investment in debt and equity securities\u00a0(1) | 377.8 | 118.9 |
Derivative financial assets | 133.5 | 383.3 |
Total exposure | 10,991.4 | 10,246.8 |
|
\u00a0
The Group\u2019s definition of default for the purpose of determining ECLs, and for internal credit risk management purposes aligns to the ECB Regulatory Capital CRR Article\u00a0178 definition of default, to maintain a consistent approach with IFRS\u00a09 and associated regulatory guidance.
The Group has issued policies and standards which regulate the governance of the local credit risk management organisation. All Group entities must comply with risk procedures issued centrally which define the way credit requests have to be studied and validated, as well as the roles and responsibilities of all staff involved in the credit assessment process. Each subsidiary has a specific credit authority approved by the Group General Management and the Risk Department of Societe Generale Group, that is determined by the size of the fleet, the maturity of the subsidiary and the type of customer concerned (corporate, retail, financial institution, etc.). Within its credit delegation, each subsidiary can decide directly on its counterparty risk and concentration risk. Above this threshold, credit acceptance is made at central level jointly with/or at the Risk Department of Societe Generale.
Regular Risk Committees are held by the Group in order to review all potential risk issues and to ensure the credit risk procedures are properly applied. All standard risk indicators (arrears/default/Cost of risk) are also monitored centrally. However, the primary responsibility for debt collection remains with the Group subsidiaries that have dedicated teams in charge of recovering unpaid invoices in compliance with local regulations and market practices. These local processes are required to be compliant with the corporate instructions and guidelines. Central monitoring of all ageing balances is performed on a monthly basis as part of the regular risk reviews, and action plans are set up whenever necessary. Each local entity is required to maintain a watch list, which is based on credit rating and other available information. These lists are reviewed in regular meetings by the Entity Risk Committees. A qualitative analysis of total credit exposures, defaults and losses is reported on a monthly basis and discussed at the Entity Risk Committee locally (frequency depending on the size of the entity) and quarterly in the Credit Risk Committee centrally.
The Group limits credit risk on liquid funds and derivative financial instruments through diversification of exposures with a range of financial institutions. Counterparty limits are set for each financial institution with reference to credit ratings assigned by Standard & Poor\u2019s and Moody\u2019s. Limits are set on a legal entity basis and are included in the Group\u2019s risk appetite and approved on a yearly basis. The Group\u2019s treasury risk management monitors the exposures, against the approved limits, on an ongoing basis.
The Group applies the IFRS\u00a09 simplified approach for measuring expected credit losses which uses a lifetime expected loss allowance for all sound trade and lease receivables. In 2024 the Group has aligned the methodologies used to calculate the expected credit loss (ECL) between the legacy ALD entities and the legacy LeasePlan entities.
Where trade receivables and finance lease receivables are not in default, the Group does not track changes in credit risk, but instead recognises a loss allowance based on expected lifetime losses from initial recognition of the receivables. These losses are measured based on a provision matrix for receivables associated with sound customers. Probability of Default (PD) rates are based on observed default rates over the life of the receivables (the average contract length in each entity). Specific PD rates are calculated for each entity and each customer type. This process results in PD rates for each age of past-due receivables. The PD rates are applied to the aged receivables of the reporting period to arrive at a total provision. The final impairment allowance is also adjusted to consider Loss Given Default (LGD) specific to the entity and the historical loss rates are adjusted to reflect current and forward-looking information on specific local economies affecting the ability of the customers to settle the receivables. When in default, the receivables from leases with customers are provisioned at 100%.
Expected credit losses are reassessed at each reporting date and reflect all reasonable information that is available at the reporting date and management consider the current level of provisions to be adequate. The Group will continue to monitor the provision parameters, including the relevance of the local uplift factors, according to the macroeconomic situation. Further information on the expected loss provision on receivables from leases is included in Note\u00a022. Given the diverse nature of the Group\u2019s operations (both in relation to customer type and geographically), the Group does not have significant concentration of credit risk with respect to lease receivables from clients, with exposure spread over a large number of customers.
For other financial assets listed above where there is zero or almost no history of credit risk or the amounts due are from financial institutions with an investment grade credit rating, no provision has been applied. For all other counterparties the ECL is based on the General Approach, where the expected credit loss model is calculated by multiplying the PD, LGD and the Exposure at Default (EAD), but the level of provisioning is dependent on the credit deterioration of the asset in line with IFRS\u00a09. The provisioning on other receivables is limited.
(in EUR million) | Notes | Year ended 31\u00a0December, | |
|---|---|---|---|
2024 | 2023 | ||
Impairment | \u00a0 | (298.7) | (168.2) |
Losses | \u00a0 | (6.7) | (0.4) |
Reversal of impairment\u00a0(1) | \u00a0 | 176.8 | 97.9 |
Impairment charges on receivables | \u00a0 | (128.5) | (70.7) |
|
\u00a0
The total variance on impairment charges on receivables is mainly driven by the charges of former LeasePlan companies which are now fully reflected for 12 months, compared to 9 months in 2023. Additionally, the variance is influenced by the alignment of IFRS 9 ECL provisions methodology to Ayvens method. The variance in the underlying impairment charges and reversals is driven by a stricter application of booking charges and reversals, following the Ayvens methodology by the former LeasePlan companies, that was not implemented in the previous year.
This item includes amounts receivable under lease contracts and trade receivables, after deduction of allowances for debtor risks, where necessary.
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Amounts receivable under finance lease contracts | 2,037.4 | 2,285.3 |
Provision for impairment of receivables under finance lease contracts | (22.5) | (21.5) |
of which | \u00a0 | \u00a0 |
provision for doubtful receivables | (8.8) | (6.6) |
provision for sound receivables\u00a0(1) | (13.6) | (14.9) |
Trade receivables | 2,417.9 | 2,545.9 |
Provision for impairment of trade receivables | (328.7) | (258.0) |
of which | \u00a0 | \u00a0 |
provision for doubtful receivables | (291.1) | (232.1) |
provision for sound receivables\u00a0(1) | (37.6) | (26.0) |
Provision for customer disputes | (20.6) | (21.0) |
Total receivables | 4,083.6 | 4,530.7 |
|
\u00a0
The fair value of receivables is equivalent to the carrying value.
The table below presents the analysis of receivables which are in and out of scope of the simplified approach of IFRS\u00a09 for sound customers. The Group considers some specific receivable types as out of scope (see Note\u00a03.4.12).
(in EUR million) | As at 31\u00a0December 2024 | As at 31\u00a0December 2023 | ||||
|---|---|---|---|---|---|---|
In scope | Out of scope | Total | In scope | Out of scope | Total | |
Amounts receivable under finance lease contracts | 2,005.8\u00a0(1) | 31.6\u00a0(2) | 2,037.4 | 2,236.3\u00a0(1) | 49.0\u00a0(2) | 2,285.3 |
Provision for impairment of receivables under finance lease contracts\u00a0(3) | (13.6) | (8.8) | (22.5) | (14.9) | (6.6) | (21.5) |
Trade receivables | 1,471.8 | 946.1\u00a0(2) | 2,417.9 | 1,512.4 | 1,033.5\u00a0(2) | 2,545.9 |
Provision for impairment of trade receivables\u00a0(3) | (37.6) | (291.1) | (328.7) | (26.0) | (232.1) | (258.0) |
Provision for customer disputes | \u2212 | (20.6) | (20.6) | \u2212 | (21.0) | (21.0) |
Total receivables | 3,426.4 | 657.2 | 4,083.6 | 3,707.9 | 822.8 | 4,530.7 |
|
\u00a0
Following the integration of Ayvens and alignment of IFRS\u00a09 calculation methods, the sound receivables and provisions as of 31\u00a0December are now presented on a consolidated basis. No comparable data is available for 2023.
Based on the receivables which are in the IFRS\u00a09 scope, as of 31\u00a0December 2024 the sound receivables amount to EUR\u00a03,477.6\u00a0million (2023: EUR\u00a03,748.7\u00a0million of which 1,483.5\u00a0million for ALD and 2,265.2\u00a0million for LeasePlan). Provisions in scope amounted to EUR\u00a051.2\u00a0million (2023: 40.9\u00a0million of which 25.5\u00a0million for ALD and 15.4\u00a0million for LeasePlan).
The loss allowance for both trade and financial lease sound receivables as of 31\u00a0December 2024 was determined as follows for the Group.
(in EUR million) | Not past due | 0-30\u00a0days past\u00a0due | 31-60\u00a0days past due | 61-90\u00a0days past due | > 90\u00a0days past\u00a0due | Total |
|---|---|---|---|---|---|---|
ECL rate | 1% | 4% | 9% | 7% | 7% | \u00a0 |
Gross carrying amount of receivables in IFRS\u00a09 scope | 3,100.7 | 262.3 | 46.4 | 23.5 | 44.7 | 3,477.6 |
Loss Allowance | (31.6) | (10.2) | (4.1) | (1.7) | (3.6) | (51.2) |
Net carrying amount of receivables in IFRS\u00a09 scope | 3,069.1 | 252.1 | 42.3 | 21.8 | 41.1 | 3,426.4 |
\u00a0
The loss allowance for both trade and finance lease sound receivables as of 31\u00a0December 2023 was determined as follows for ALD entities.
\u00a0
(in EUR million) | Not past due | 0-30\u00a0days past\u00a0due | 31-60\u00a0days past due | 61-90\u00a0days past due | > 90\u00a0days past\u00a0due | Total |
|---|---|---|---|---|---|---|
ECL rate | 1% | 3% | 9% | 7% | 15% | \u00a0 |
Gross carrying amount of receivables in IFRS\u00a09 scope | 1,251.0 | 167.3 | 33.0 | 12.5 | 19.7 | 1,483.5 |
Loss Allowance | (14.3) | (4.5) | (2.8) | (0.9) | (3.0) | (25.5) |
Net carrying amount of receivables in IFRS\u00a09 scope | 1,236.7 | 162.8 | 30.2 | 11.6 | 16.8 | 1,458.0 |
\u00a0
For the LeasePlan entities acquired in 2023, the loss allowance as of 31\u00a0December 2023 was determined as follows for both trade and finance lease sound receivables:
(in EUR million) | As at 31\u00a0December 2023 | ||||
|---|---|---|---|---|---|
Banks | Corporate | Small and Medium Enterprises | Private | Total | |
ECL rate | 0% | 0% | 2% | 1% | \u00a0 |
Gross carrying amount of receivables in IFRS\u00a09 scope | 7.7 | 1,406.0 | 794.0 | 57.7 | 2,265.3 |
Loss Allowance | \u2212 | (2.5) | (12.3) | (0.6) | (15.4) |
Net carrying amount of receivables in IFRS\u00a09 scope | 7.7 | 1,403.5 | 781.6 | 57.1 | 2,249.9 |
\u00a0
The movement in impairment of finance lease receivables is as follows:
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Balance at 1\u00a0January | (21.5) | (11.6) |
Purchased credit impaired receivables\u00a0(1) | \u2212 | (1.3) |
Net Impairment charges\u00a0(2) | (3.9) | 0.2 |
Receivables written off | 3.5 | 2.3 |
Scope changes\u00a0(3) | \u2212 | (10.9) |
Other and currency translation differences | (0.6) | (0.2) |
Balance at 31\u00a0December | (22.5) | (21.5) |
|
The amounts presented in the tables below include loans and finance receivables by Basel\u00a0II portfolio that are not past due and that are past due but not individually impaired.
(in EUR million) | Year ended 31\u00a0December 2024 | |||||
|---|---|---|---|---|---|---|
Loans and receivables to customers | ||||||
Banks | Corporates | Small and medium enterprises | Credit to individuals | Very small companies | Total | |
Amounts not past due | 6.3 | 1,006.5 | 492.7 | 63.1 | 151.1 | 1,719.7 |
Amounts including past due between 1 to 30\u00a0days | 0.3 | 20.3 | 43.1 | 0.6 | 24.9 | 89.2 |
Amounts including past due between 31 to 60\u00a0days | 0.1 | 24.7 | 4.6 | 0.2 | 9.5 | 39.1 |
Amounts including past due between 61 to 90\u00a0days | 0.1 | 3.7 | 2.9 | 0.3 | 4.3 | 11.3 |
Amounts including past due between 91 to 180\u00a0days | \u2212 | 110.5 | 0.9 | \u2212 | 1.1 | 112.5 |
Amounts including past due between 181\u00a0days to 1\u00a0year | \u2212 | 16.4 | 1.7 | \u2212 | 0.7 | 18.8 |
Amounts including past due over 1\u00a0year | 0.1 | 14.8 | \u2212 | \u2212 | 0.3 | 15.2 |
Total | 7.0 | 1,196.9 | 545.8 | 64.1 | 191.9 | 2,005.8 |
\u00a0
(in EUR million) | Year ended 31\u00a0December 2023 | |||||
|---|---|---|---|---|---|---|
Loans and receivables to customers | ||||||
Banks | Corporates | Small and medium enterprises | Credit to individuals | Very small companies | Total | |
Amounts not past due | 8.4 | 1,152.8 | 624.5 | 84.7 | 157.9 | 2,028.2 |
Amounts including past due between 1 to 30\u00a0days | 0.1 | 22.7 | 36.4 | 1.7 | 11.4 | 72.4 |
Amounts including past due between 31 to 60\u00a0days | 0.2 | 8.0 | 11.3 | 0.2 | 2.9 | 22.5 |
Amounts including past due between 61 to 90\u00a0days | \u2212 | 1.6 | 4.8 | 0.1 | 2.5 | 8.9 |
Amounts including past due between 91 to 180\u00a0days | 0.3 | 97.4 | 0.1 | 0.1 | 1.6 | 99.5 |
Amounts including past due between 181\u00a0days to 1\u00a0year | \u2212 | 2.6 | \u2212 | 0.0 | 0.6 | 3.2 |
Amounts including past due over 1\u00a0year | \u2212 | 1.1 | \u2212 | 0.0 | 0.4 | 1.5 |
Total | 9.0 | 1,286.2 | 677.1 | 86.7 | 177.3 | 2,236.3 |
\u00a0
A full description of the impairment policy is contained in the Credit risk measurement section of the Note\u00a05 Financial Risk Management.
\u00a0
The movement in impairment of trade receivables is as follows:
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Balance at 1\u00a0January | (258.0) | (174.6) |
Purchased credit impaired receivables\u00a0(1) | \u2212 | (39.4) |
Net Impairment charges\u00a0(2) | (124.6) | (70.9) |
Receivables written off | 53.7 | 44.6 |
Transfer of disposal groups to assets held for sale | (3.4) | \u2212 |
Scope changes\u00a0(3) | \u2212 | (19.5) |
Other and currency translation differences | 3.8 | 1.9 |
Balance at 31\u00a0December | (328.7) | (258.0) |
|
The maturity analysis is as follows:
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Trade receivables not overdue | 1,714.1 | 2,134.1 |
Past due up to 90\u00a0days | 370.9 | 226.4 |
Past due between 90-180\u00a0days | 81.1 | 27.6 |
Past due over 180\u00a0days | 251.8 | 157.8 |
Total | 2,417.9 | 2,545.9 |
\u00a0
The amounts receivable from customers include finance lease receivables, which can be analysed as follows:
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Less than one year | 599.9 | 614.8 |
1 -2\u00a0years | 460.6 | 523.2 |
2 -3\u00a0years | 302.4 | 403.0 |
3 -4\u00a0years | 191.2 | 211.1 |
4 -5\u00a0years | 70.2 | 88.6 |
More than 5\u00a0years | 32.1 | 34.4 |
Gross investment in finance lease payments | 1,656.4 | 1,875.0 |
Unguaranteed residual value | 566.5 | 635.3 |
Unearned finance income | (185.5) | (225.0) |
Net investment in finance leases | 2,037.4 | 2,285.3 |
\u00a0
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Current | 737.9 | 749.3 |
Non-current | 1,299.5 | 1,535.9 |
Net investment in finance leases | 2,037.4 | 2,285.3 |
\u00a0
A part of the finance lease assets is encumbered (securitised) because of the asset backed securitisation transactions concluded by the Group. The total value of the securitised finance lease assets amounts to EUR\u00a05,179.4\u00a0million (2023: EUR\u00a04,256.2\u00a0million). For further details on the transactions refer to Note\u00a029 of the consolidated financial statements.
In the event of legal proceeding taken against a customer that is in default, the vehicle would be recovered and as such the fair value of that vehicle less costs to recover would be considered collateral and reduce significantly any loss on default.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCreditRiskExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_a847929b-eebe-43a2-8205-1a3233c1e39c": { "value": "An expected credit loss (ECL) provision is applied to all receivables from customers that are measured at amortised cost with the exception of those receivables deemed to be out of scope. The Group have applied this scope exemption when the receivable meets the low credit risk exemption criteria. The Group has applied this to receivables on used car sales and insurance receivables, where there is zero or almost no history of credit risk or the amounts due are from financial institutions with an investment grade credit rating.
For the other receivables from customers former LeasePlan entities have aligned with existing ALD policies as of May\u00a02024. Overall, the Group segments the receivables from customers into sound and doubtful receivables that includes receivables that have met the definition of default. For sound receivables the Group applies a simplified approach in calculating ECLs from initial recognition of the receivable, which means the Group does not track changes in significant increase in credit risk but instead recognises a loss allowance based on lifetime ECLs at each reporting date.
The Group has established a provision matrix for the sound receivables that is based on its historical credit loss experience by ageing categories, adjusted for forward-looking factors specific to the debtors and the economic environment when the impact of those factors is material to the financial statements. To establish the forward-looking element of IFRS\u00a09 provision, the Group uses macroeconomic data and analysis through local uplifts to probability of default and loss given default rates.
Since obtaining the financial holding status, the Group has aligned its definition of default to the ECB Regulatory Capital CRR Article\u00a0178 definition of default in 2023. This change applies to historic ALD entities only as LeasePlan entities were already aligned with the Article\u00a0178 definition of default due to holding a banking licence prior to the acquisition. For purposes of assessing, recognising and reporting defaults, a customer shall be considered to be in default when either one or both of the following events occur:
The application of the above guidance is only to the extent of identifying the customers that are in default. There is no change in the method of determining the value of impairment. Where the customer is in default, the whole of the customer balance is classified as doubtful, and impairment is based upon the full outstanding amount, except where we have adjudged there are mitigating circumstances.\u00a0
Alignment of LeasePlan entities with the Ayvens methodology increased the IFRS 9 provisions by EUR\u00a017.5\u00a0million as part of the purchase price allocation. Main driver of that increase is the provisioning of 100% for receivables from customers past due more than 90 consecutive days on any material credit obligation. The subsequent increase (EUR\u00a05.9\u00a0million) was accounted for as cost of risk in Q1 2024.
Expected credit losses are reassessed at each reporting date and reflect all reasonable information that is available at the reporting date. Judgement is required from management for applying appropriate models and setting assumptions for the measurement of ECL. The methodology, assumptions and data, including any forecasts of future economic conditions, macroeconomic impacts and the Group\u2019s provision matrix are reviewed regularly by management in determining the expected credit losses and the write-off of receivables. Doubtful debts should be written off as soon as the definitive loss is known.
Where the Group have acquired credit-impaired receivables from customers as part of a business combination, the gross receivable is initial recognised at fair value with no carrying impairment allowance. The Group only recognises the cumulative changes in lifetime expected credit losses since initial recognition as a loss allowance for originated purchased credit-impaired financial assets in the income statement.
Disputes often arise in the collection of lease receivables and tend to range from issues relating to the performance of various services under the contract to the amount of end-of-contract billing. A dispute has no impact on the solvency of the customer or the risk of default, and therefore is not a credit loss. As such these amounts are removed from sound receivables and a provision is applied based on our provisions accounting policy. For presentation purposes the provision is netted against the \u201cReceivables from customers\u201d balance sheet line item.
Details about the assumptions and estimation techniques used in measuring ECL for finance lease receivables and trade receivables from operating lease contracts are provided in the section Credit risk management and disclosure on the impairment provided in Note\u00a022 Lease receivables from customers.
Details about the methodology in measuring ECL for finance lease receivables and trade receivables from operating lease contracts are provided in Note\u00a022 Lease receivables from customers. Expected credit losses are reassessed at each reporting date and reflect all reasonable information that is available at the reporting date. Judgement is required from management for applying appropriate models and setting assumptions for the measurement of ECL. The methodology, assumptions and data, including any forecasts of future economic conditions, macroeconomic impacts and the Group\u2019s provision matrix are reviewed regularly by management in determining the expected credit losses and the write-off of receivables.
(in EUR million) | Notes | Year ended 31\u00a0December, | |
|---|---|---|---|
2024 | 2023 | ||
Impairment | \u00a0 | (298.7) | (168.2) |
Losses | \u00a0 | (6.7) | (0.4) |
Reversal of impairment\u00a0(1) | \u00a0 | 176.8 | 97.9 |
Impairment charges on receivables | \u00a0 | (128.5) | (70.7) |
|
\u00a0
The total variance on impairment charges on receivables is mainly driven by the charges of former LeasePlan companies which are now fully reflected for 12 months, compared to 9 months in 2023. Additionally, the variance is influenced by the alignment of IFRS 9 ECL provisions methodology to Ayvens method. The variance in the underlying impairment charges and reversals is driven by a stricter application of booking charges and reversals, following the Ayvens methodology by the former LeasePlan companies, that was not implemented in the previous year.
This item includes amounts receivable under lease contracts and trade receivables, after deduction of allowances for debtor risks, where necessary.
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Amounts receivable under finance lease contracts | 2,037.4 | 2,285.3 |
Provision for impairment of receivables under finance lease contracts | (22.5) | (21.5) |
of which | \u00a0 | \u00a0 |
provision for doubtful receivables | (8.8) | (6.6) |
provision for sound receivables\u00a0(1) | (13.6) | (14.9) |
Trade receivables | 2,417.9 | 2,545.9 |
Provision for impairment of trade receivables | (328.7) | (258.0) |
of which | \u00a0 | \u00a0 |
provision for doubtful receivables | (291.1) | (232.1) |
provision for sound receivables\u00a0(1) | (37.6) | (26.0) |
Provision for customer disputes | (20.6) | (21.0) |
Total receivables | 4,083.6 | 4,530.7 |
|
\u00a0
The fair value of receivables is equivalent to the carrying value.
The table below presents the analysis of receivables which are in and out of scope of the simplified approach of IFRS\u00a09 for sound customers. The Group considers some specific receivable types as out of scope (see Note\u00a03.4.12).
(in EUR million) | As at 31\u00a0December 2024 | As at 31\u00a0December 2023 | ||||
|---|---|---|---|---|---|---|
In scope | Out of scope | Total | In scope | Out of scope | Total | |
Amounts receivable under finance lease contracts | 2,005.8\u00a0(1) | 31.6\u00a0(2) | 2,037.4 | 2,236.3\u00a0(1) | 49.0\u00a0(2) | 2,285.3 |
Provision for impairment of receivables under finance lease contracts\u00a0(3) | (13.6) | (8.8) | (22.5) | (14.9) | (6.6) | (21.5) |
Trade receivables | 1,471.8 | 946.1\u00a0(2) | 2,417.9 | 1,512.4 | 1,033.5\u00a0(2) | 2,545.9 |
Provision for impairment of trade receivables\u00a0(3) | (37.6) | (291.1) | (328.7) | (26.0) | (232.1) | (258.0) |
Provision for customer disputes | \u2212 | (20.6) | (20.6) | \u2212 | (21.0) | (21.0) |
Total receivables | 3,426.4 | 657.2 | 4,083.6 | 3,707.9 | 822.8 | 4,530.7 |
|
\u00a0
Following the integration of Ayvens and alignment of IFRS\u00a09 calculation methods, the sound receivables and provisions as of 31\u00a0December are now presented on a consolidated basis. No comparable data is available for 2023.
Based on the receivables which are in the IFRS\u00a09 scope, as of 31\u00a0December 2024 the sound receivables amount to EUR\u00a03,477.6\u00a0million (2023: EUR\u00a03,748.7\u00a0million of which 1,483.5\u00a0million for ALD and 2,265.2\u00a0million for LeasePlan). Provisions in scope amounted to EUR\u00a051.2\u00a0million (2023: 40.9\u00a0million of which 25.5\u00a0million for ALD and 15.4\u00a0million for LeasePlan).
The loss allowance for both trade and financial lease sound receivables as of 31\u00a0December 2024 was determined as follows for the Group.
(in EUR million) | Not past due | 0-30\u00a0days past\u00a0due | 31-60\u00a0days past due | 61-90\u00a0days past due | > 90\u00a0days past\u00a0due | Total |
|---|---|---|---|---|---|---|
ECL rate | 1% | 4% | 9% | 7% | 7% | \u00a0 |
Gross carrying amount of receivables in IFRS\u00a09 scope | 3,100.7 | 262.3 | 46.4 | 23.5 | 44.7 | 3,477.6 |
Loss Allowance | (31.6) | (10.2) | (4.1) | (1.7) | (3.6) | (51.2) |
Net carrying amount of receivables in IFRS\u00a09 scope | 3,069.1 | 252.1 | 42.3 | 21.8 | 41.1 | 3,426.4 |
\u00a0
The loss allowance for both trade and finance lease sound receivables as of 31\u00a0December 2023 was determined as follows for ALD entities.
\u00a0
(in EUR million) | Not past due | 0-30\u00a0days past\u00a0due | 31-60\u00a0days past due | 61-90\u00a0days past due | > 90\u00a0days past\u00a0due | Total |
|---|---|---|---|---|---|---|
ECL rate | 1% | 3% | 9% | 7% | 15% | \u00a0 |
Gross carrying amount of receivables in IFRS\u00a09 scope | 1,251.0 | 167.3 | 33.0 | 12.5 | 19.7 | 1,483.5 |
Loss Allowance | (14.3) | (4.5) | (2.8) | (0.9) | (3.0) | (25.5) |
Net carrying amount of receivables in IFRS\u00a09 scope | 1,236.7 | 162.8 | 30.2 | 11.6 | 16.8 | 1,458.0 |
\u00a0
For the LeasePlan entities acquired in 2023, the loss allowance as of 31\u00a0December 2023 was determined as follows for both trade and finance lease sound receivables:
(in EUR million) | As at 31\u00a0December 2023 | ||||
|---|---|---|---|---|---|
Banks | Corporate | Small and Medium Enterprises | Private | Total | |
ECL rate | 0% | 0% | 2% | 1% | \u00a0 |
Gross carrying amount of receivables in IFRS\u00a09 scope | 7.7 | 1,406.0 | 794.0 | 57.7 | 2,265.3 |
Loss Allowance | \u2212 | (2.5) | (12.3) | (0.6) | (15.4) |
Net carrying amount of receivables in IFRS\u00a09 scope | 7.7 | 1,403.5 | 781.6 | 57.1 | 2,249.9 |
\u00a0
The movement in impairment of finance lease receivables is as follows:
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Balance at 1\u00a0January | (21.5) | (11.6) |
Purchased credit impaired receivables\u00a0(1) | \u2212 | (1.3) |
Net Impairment charges\u00a0(2) | (3.9) | 0.2 |
Receivables written off | 3.5 | 2.3 |
Scope changes\u00a0(3) | \u2212 | (10.9) |
Other and currency translation differences | (0.6) | (0.2) |
Balance at 31\u00a0December | (22.5) | (21.5) |
|
The amounts presented in the tables below include loans and finance receivables by Basel\u00a0II portfolio that are not past due and that are past due but not individually impaired.
(in EUR million) | Year ended 31\u00a0December 2024 | |||||
|---|---|---|---|---|---|---|
Loans and receivables to customers | ||||||
Banks | Corporates | Small and medium enterprises | Credit to individuals | Very small companies | Total | |
Amounts not past due | 6.3 | 1,006.5 | 492.7 | 63.1 | 151.1 | 1,719.7 |
Amounts including past due between 1 to 30\u00a0days | 0.3 | 20.3 | 43.1 | 0.6 | 24.9 | 89.2 |
Amounts including past due between 31 to 60\u00a0days | 0.1 | 24.7 | 4.6 | 0.2 | 9.5 | 39.1 |
Amounts including past due between 61 to 90\u00a0days | 0.1 | 3.7 | 2.9 | 0.3 | 4.3 | 11.3 |
Amounts including past due between 91 to 180\u00a0days | \u2212 | 110.5 | 0.9 | \u2212 | 1.1 | 112.5 |
Amounts including past due between 181\u00a0days to 1\u00a0year | \u2212 | 16.4 | 1.7 | \u2212 | 0.7 | 18.8 |
Amounts including past due over 1\u00a0year | 0.1 | 14.8 | \u2212 | \u2212 | 0.3 | 15.2 |
Total | 7.0 | 1,196.9 | 545.8 | 64.1 | 191.9 | 2,005.8 |
\u00a0
(in EUR million) | Year ended 31\u00a0December 2023 | |||||
|---|---|---|---|---|---|---|
Loans and receivables to customers | ||||||
Banks | Corporates | Small and medium enterprises | Credit to individuals | Very small companies | Total | |
Amounts not past due | 8.4 | 1,152.8 | 624.5 | 84.7 | 157.9 | 2,028.2 |
Amounts including past due between 1 to 30\u00a0days | 0.1 | 22.7 | 36.4 | 1.7 | 11.4 | 72.4 |
Amounts including past due between 31 to 60\u00a0days | 0.2 | 8.0 | 11.3 | 0.2 | 2.9 | 22.5 |
Amounts including past due between 61 to 90\u00a0days | \u2212 | 1.6 | 4.8 | 0.1 | 2.5 | 8.9 |
Amounts including past due between 91 to 180\u00a0days | 0.3 | 97.4 | 0.1 | 0.1 | 1.6 | 99.5 |
Amounts including past due between 181\u00a0days to 1\u00a0year | \u2212 | 2.6 | \u2212 | 0.0 | 0.6 | 3.2 |
Amounts including past due over 1\u00a0year | \u2212 | 1.1 | \u2212 | 0.0 | 0.4 | 1.5 |
Total | 9.0 | 1,286.2 | 677.1 | 86.7 | 177.3 | 2,236.3 |
\u00a0
A full description of the impairment policy is contained in the Credit risk measurement section of the Note\u00a05 Financial Risk Management.
\u00a0
The movement in impairment of trade receivables is as follows:
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Balance at 1\u00a0January | (258.0) | (174.6) |
Purchased credit impaired receivables\u00a0(1) | \u2212 | (39.4) |
Net Impairment charges\u00a0(2) | (124.6) | (70.9) |
Receivables written off | 53.7 | 44.6 |
Transfer of disposal groups to assets held for sale | (3.4) | \u2212 |
Scope changes\u00a0(3) | \u2212 | (19.5) |
Other and currency translation differences | 3.8 | 1.9 |
Balance at 31\u00a0December | (328.7) | (258.0) |
|
The maturity analysis is as follows:
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Trade receivables not overdue | 1,714.1 | 2,134.1 |
Past due up to 90\u00a0days | 370.9 | 226.4 |
Past due between 90-180\u00a0days | 81.1 | 27.6 |
Past due over 180\u00a0days | 251.8 | 157.8 |
Total | 2,417.9 | 2,545.9 |
\u00a0
The amounts receivable from customers include finance lease receivables, which can be analysed as follows:
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Less than one year | 599.9 | 614.8 |
1 -2\u00a0years | 460.6 | 523.2 |
2 -3\u00a0years | 302.4 | 403.0 |
3 -4\u00a0years | 191.2 | 211.1 |
4 -5\u00a0years | 70.2 | 88.6 |
More than 5\u00a0years | 32.1 | 34.4 |
Gross investment in finance lease payments | 1,656.4 | 1,875.0 |
Unguaranteed residual value | 566.5 | 635.3 |
Unearned finance income | (185.5) | (225.0) |
Net investment in finance leases | 2,037.4 | 2,285.3 |
\u00a0
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Current | 737.9 | 749.3 |
Non-current | 1,299.5 | 1,535.9 |
Net investment in finance leases | 2,037.4 | 2,285.3 |
\u00a0
A part of the finance lease assets is encumbered (securitised) because of the asset backed securitisation transactions concluded by the Group. The total value of the securitised finance lease assets amounts to EUR\u00a05,179.4\u00a0million (2023: EUR\u00a04,256.2\u00a0million). For further details on the transactions refer to Note\u00a029 of the consolidated financial statements.
In the event of legal proceeding taken against a customer that is in default, the vehicle would be recovered and as such the fair value of that vehicle less costs to recover would be considered collateral and reduce significantly any loss on default.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAllowanceForCreditLossesExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_fd449671-ac54-4f7d-b20d-239d6ed5f8d0": { "value": "An expected credit loss (ECL) provision is applied to all receivables from customers that are measured at amortised cost with the exception of those receivables deemed to be out of scope. The Group have applied this scope exemption when the receivable meets the low credit risk exemption criteria. The Group has applied this to receivables on used car sales and insurance receivables, where there is zero or almost no history of credit risk or the amounts due are from financial institutions with an investment grade credit rating.
For the other receivables from customers former LeasePlan entities have aligned with existing ALD policies as of May\u00a02024. Overall, the Group segments the receivables from customers into sound and doubtful receivables that includes receivables that have met the definition of default. For sound receivables the Group applies a simplified approach in calculating ECLs from initial recognition of the receivable, which means the Group does not track changes in significant increase in credit risk but instead recognises a loss allowance based on lifetime ECLs at each reporting date.
The Group has established a provision matrix for the sound receivables that is based on its historical credit loss experience by ageing categories, adjusted for forward-looking factors specific to the debtors and the economic environment when the impact of those factors is material to the financial statements. To establish the forward-looking element of IFRS\u00a09 provision, the Group uses macroeconomic data and analysis through local uplifts to probability of default and loss given default rates.
Since obtaining the financial holding status, the Group has aligned its definition of default to the ECB Regulatory Capital CRR Article\u00a0178 definition of default in 2023. This change applies to historic ALD entities only as LeasePlan entities were already aligned with the Article\u00a0178 definition of default due to holding a banking licence prior to the acquisition. For purposes of assessing, recognising and reporting defaults, a customer shall be considered to be in default when either one or both of the following events occur:
The application of the above guidance is only to the extent of identifying the customers that are in default. There is no change in the method of determining the value of impairment. Where the customer is in default, the whole of the customer balance is classified as doubtful, and impairment is based upon the full outstanding amount, except where we have adjudged there are mitigating circumstances.\u00a0
Alignment of LeasePlan entities with the Ayvens methodology increased the IFRS 9 provisions by EUR\u00a017.5\u00a0million as part of the purchase price allocation. Main driver of that increase is the provisioning of 100% for receivables from customers past due more than 90 consecutive days on any material credit obligation. The subsequent increase (EUR\u00a05.9\u00a0million) was accounted for as cost of risk in Q1 2024.
Expected credit losses are reassessed at each reporting date and reflect all reasonable information that is available at the reporting date. Judgement is required from management for applying appropriate models and setting assumptions for the measurement of ECL. The methodology, assumptions and data, including any forecasts of future economic conditions, macroeconomic impacts and the Group\u2019s provision matrix are reviewed regularly by management in determining the expected credit losses and the write-off of receivables. Doubtful debts should be written off as soon as the definitive loss is known.
Where the Group have acquired credit-impaired receivables from customers as part of a business combination, the gross receivable is initial recognised at fair value with no carrying impairment allowance. The Group only recognises the cumulative changes in lifetime expected credit losses since initial recognition as a loss allowance for originated purchased credit-impaired financial assets in the income statement.
Disputes often arise in the collection of lease receivables and tend to range from issues relating to the performance of various services under the contract to the amount of end-of-contract billing. A dispute has no impact on the solvency of the customer or the risk of default, and therefore is not a credit loss. As such these amounts are removed from sound receivables and a provision is applied based on our provisions accounting policy. For presentation purposes the provision is netted against the \u201cReceivables from customers\u201d balance sheet line item.
Details about the assumptions and estimation techniques used in measuring ECL for finance lease receivables and trade receivables from operating lease contracts are provided in the section Credit risk management and disclosure on the impairment provided in Note\u00a022 Lease receivables from customers.
Details about the methodology in measuring ECL for finance lease receivables and trade receivables from operating lease contracts are provided in Note\u00a022 Lease receivables from customers. Expected credit losses are reassessed at each reporting date and reflect all reasonable information that is available at the reporting date. Judgement is required from management for applying appropriate models and setting assumptions for the measurement of ECL. The methodology, assumptions and data, including any forecasts of future economic conditions, macroeconomic impacts and the Group\u2019s provision matrix are reviewed regularly by management in determining the expected credit losses and the write-off of receivables.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfFinancialAssetsExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_b441e77b-6e31-4ee9-9ae2-87add8912df3": { "value": "Other receivables and prepayments include prepayments in respect of expenses attributable to a subsequent period plus amounts still to be received. These amounts are valued at cost. For recognition and measurement of Reinsurance assets and Insurance contract assets reference is made to the insurance policy. For those financial assets measured at amortised cost the Group has excluded them as part of the expected loss model (see Lease receivable from customers policy) and instead any impairment will be based on observable events.
This item includes amounts receivable under lease contracts and trade receivables, after deduction of allowances for debtor risks, where necessary.
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Amounts receivable under finance lease contracts | 2,037.4 | 2,285.3 |
Provision for impairment of receivables under finance lease contracts | (22.5) | (21.5) |
of which | \u00a0 | \u00a0 |
provision for doubtful receivables | (8.8) | (6.6) |
provision for sound receivables\u00a0(1) | (13.6) | (14.9) |
Trade receivables | 2,417.9 | 2,545.9 |
Provision for impairment of trade receivables | (328.7) | (258.0) |
of which | \u00a0 | \u00a0 |
provision for doubtful receivables | (291.1) | (232.1) |
provision for sound receivables\u00a0(1) | (37.6) | (26.0) |
Provision for customer disputes | (20.6) | (21.0) |
Total receivables | 4,083.6 | 4,530.7 |
|
\u00a0
The fair value of receivables is equivalent to the carrying value.
The table below presents the analysis of receivables which are in and out of scope of the simplified approach of IFRS\u00a09 for sound customers. The Group considers some specific receivable types as out of scope (see Note\u00a03.4.12).
(in EUR million) | As at 31\u00a0December 2024 | As at 31\u00a0December 2023 | ||||
|---|---|---|---|---|---|---|
In scope | Out of scope | Total | In scope | Out of scope | Total | |
Amounts receivable under finance lease contracts | 2,005.8\u00a0(1) | 31.6\u00a0(2) | 2,037.4 | 2,236.3\u00a0(1) | 49.0\u00a0(2) | 2,285.3 |
Provision for impairment of receivables under finance lease contracts\u00a0(3) | (13.6) | (8.8) | (22.5) | (14.9) | (6.6) | (21.5) |
Trade receivables | 1,471.8 | 946.1\u00a0(2) | 2,417.9 | 1,512.4 | 1,033.5\u00a0(2) | 2,545.9 |
Provision for impairment of trade receivables\u00a0(3) | (37.6) | (291.1) | (328.7) | (26.0) | (232.1) | (258.0) |
Provision for customer disputes | \u2212 | (20.6) | (20.6) | \u2212 | (21.0) | (21.0) |
Total receivables | 3,426.4 | 657.2 | 4,083.6 | 3,707.9 | 822.8 | 4,530.7 |
|
\u00a0
Following the integration of Ayvens and alignment of IFRS\u00a09 calculation methods, the sound receivables and provisions as of 31\u00a0December are now presented on a consolidated basis. No comparable data is available for 2023.
Based on the receivables which are in the IFRS\u00a09 scope, as of 31\u00a0December 2024 the sound receivables amount to EUR\u00a03,477.6\u00a0million (2023: EUR\u00a03,748.7\u00a0million of which 1,483.5\u00a0million for ALD and 2,265.2\u00a0million for LeasePlan). Provisions in scope amounted to EUR\u00a051.2\u00a0million (2023: 40.9\u00a0million of which 25.5\u00a0million for ALD and 15.4\u00a0million for LeasePlan).
The loss allowance for both trade and financial lease sound receivables as of 31\u00a0December 2024 was determined as follows for the Group.
(in EUR million) | Not past due | 0-30\u00a0days past\u00a0due | 31-60\u00a0days past due | 61-90\u00a0days past due | > 90\u00a0days past\u00a0due | Total |
|---|---|---|---|---|---|---|
ECL rate | 1% | 4% | 9% | 7% | 7% | \u00a0 |
Gross carrying amount of receivables in IFRS\u00a09 scope | 3,100.7 | 262.3 | 46.4 | 23.5 | 44.7 | 3,477.6 |
Loss Allowance | (31.6) | (10.2) | (4.1) | (1.7) | (3.6) | (51.2) |
Net carrying amount of receivables in IFRS\u00a09 scope | 3,069.1 | 252.1 | 42.3 | 21.8 | 41.1 | 3,426.4 |
\u00a0
The loss allowance for both trade and finance lease sound receivables as of 31\u00a0December 2023 was determined as follows for ALD entities.
\u00a0
(in EUR million) | Not past due | 0-30\u00a0days past\u00a0due | 31-60\u00a0days past due | 61-90\u00a0days past due | > 90\u00a0days past\u00a0due | Total |
|---|---|---|---|---|---|---|
ECL rate | 1% | 3% | 9% | 7% | 15% | \u00a0 |
Gross carrying amount of receivables in IFRS\u00a09 scope | 1,251.0 | 167.3 | 33.0 | 12.5 | 19.7 | 1,483.5 |
Loss Allowance | (14.3) | (4.5) | (2.8) | (0.9) | (3.0) | (25.5) |
Net carrying amount of receivables in IFRS\u00a09 scope | 1,236.7 | 162.8 | 30.2 | 11.6 | 16.8 | 1,458.0 |
\u00a0
For the LeasePlan entities acquired in 2023, the loss allowance as of 31\u00a0December 2023 was determined as follows for both trade and finance lease sound receivables:
(in EUR million) | As at 31\u00a0December 2023 | ||||
|---|---|---|---|---|---|
Banks | Corporate | Small and Medium Enterprises | Private | Total | |
ECL rate | 0% | 0% | 2% | 1% | \u00a0 |
Gross carrying amount of receivables in IFRS\u00a09 scope | 7.7 | 1,406.0 | 794.0 | 57.7 | 2,265.3 |
Loss Allowance | \u2212 | (2.5) | (12.3) | (0.6) | (15.4) |
Net carrying amount of receivables in IFRS\u00a09 scope | 7.7 | 1,403.5 | 781.6 | 57.1 | 2,249.9 |
\u00a0
The movement in impairment of finance lease receivables is as follows:
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Balance at 1\u00a0January | (21.5) | (11.6) |
Purchased credit impaired receivables\u00a0(1) | \u2212 | (1.3) |
Net Impairment charges\u00a0(2) | (3.9) | 0.2 |
Receivables written off | 3.5 | 2.3 |
Scope changes\u00a0(3) | \u2212 | (10.9) |
Other and currency translation differences | (0.6) | (0.2) |
Balance at 31\u00a0December | (22.5) | (21.5) |
|
The amounts presented in the tables below include loans and finance receivables by Basel\u00a0II portfolio that are not past due and that are past due but not individually impaired.
(in EUR million) | Year ended 31\u00a0December 2024 | |||||
|---|---|---|---|---|---|---|
Loans and receivables to customers | ||||||
Banks | Corporates | Small and medium enterprises | Credit to individuals | Very small companies | Total | |
Amounts not past due | 6.3 | 1,006.5 | 492.7 | 63.1 | 151.1 | 1,719.7 |
Amounts including past due between 1 to 30\u00a0days | 0.3 | 20.3 | 43.1 | 0.6 | 24.9 | 89.2 |
Amounts including past due between 31 to 60\u00a0days | 0.1 | 24.7 | 4.6 | 0.2 | 9.5 | 39.1 |
Amounts including past due between 61 to 90\u00a0days | 0.1 | 3.7 | 2.9 | 0.3 | 4.3 | 11.3 |
Amounts including past due between 91 to 180\u00a0days | \u2212 | 110.5 | 0.9 | \u2212 | 1.1 | 112.5 |
Amounts including past due between 181\u00a0days to 1\u00a0year | \u2212 | 16.4 | 1.7 | \u2212 | 0.7 | 18.8 |
Amounts including past due over 1\u00a0year | 0.1 | 14.8 | \u2212 | \u2212 | 0.3 | 15.2 |
Total | 7.0 | 1,196.9 | 545.8 | 64.1 | 191.9 | 2,005.8 |
\u00a0
(in EUR million) | Year ended 31\u00a0December 2023 | |||||
|---|---|---|---|---|---|---|
Loans and receivables to customers | ||||||
Banks | Corporates | Small and medium enterprises | Credit to individuals | Very small companies | Total | |
Amounts not past due | 8.4 | 1,152.8 | 624.5 | 84.7 | 157.9 | 2,028.2 |
Amounts including past due between 1 to 30\u00a0days | 0.1 | 22.7 | 36.4 | 1.7 | 11.4 | 72.4 |
Amounts including past due between 31 to 60\u00a0days | 0.2 | 8.0 | 11.3 | 0.2 | 2.9 | 22.5 |
Amounts including past due between 61 to 90\u00a0days | \u2212 | 1.6 | 4.8 | 0.1 | 2.5 | 8.9 |
Amounts including past due between 91 to 180\u00a0days | 0.3 | 97.4 | 0.1 | 0.1 | 1.6 | 99.5 |
Amounts including past due between 181\u00a0days to 1\u00a0year | \u2212 | 2.6 | \u2212 | 0.0 | 0.6 | 3.2 |
Amounts including past due over 1\u00a0year | \u2212 | 1.1 | \u2212 | 0.0 | 0.4 | 1.5 |
Total | 9.0 | 1,286.2 | 677.1 | 86.7 | 177.3 | 2,236.3 |
\u00a0
A full description of the impairment policy is contained in the Credit risk measurement section of the Note\u00a05 Financial Risk Management.
\u00a0
The movement in impairment of trade receivables is as follows:
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Balance at 1\u00a0January | (258.0) | (174.6) |
Purchased credit impaired receivables\u00a0(1) | \u2212 | (39.4) |
Net Impairment charges\u00a0(2) | (124.6) | (70.9) |
Receivables written off | 53.7 | 44.6 |
Transfer of disposal groups to assets held for sale | (3.4) | \u2212 |
Scope changes\u00a0(3) | \u2212 | (19.5) |
Other and currency translation differences | 3.8 | 1.9 |
Balance at 31\u00a0December | (328.7) | (258.0) |
|
The maturity analysis is as follows:
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Trade receivables not overdue | 1,714.1 | 2,134.1 |
Past due up to 90\u00a0days | 370.9 | 226.4 |
Past due between 90-180\u00a0days | 81.1 | 27.6 |
Past due over 180\u00a0days | 251.8 | 157.8 |
Total | 2,417.9 | 2,545.9 |
\u00a0
The amounts receivable from customers include finance lease receivables, which can be analysed as follows:
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Less than one year | 599.9 | 614.8 |
1 -2\u00a0years | 460.6 | 523.2 |
2 -3\u00a0years | 302.4 | 403.0 |
3 -4\u00a0years | 191.2 | 211.1 |
4 -5\u00a0years | 70.2 | 88.6 |
More than 5\u00a0years | 32.1 | 34.4 |
Gross investment in finance lease payments | 1,656.4 | 1,875.0 |
Unguaranteed residual value | 566.5 | 635.3 |
Unearned finance income | (185.5) | (225.0) |
Net investment in finance leases | 2,037.4 | 2,285.3 |
\u00a0
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Current | 737.9 | 749.3 |
Non-current | 1,299.5 | 1,535.9 |
Net investment in finance leases | 2,037.4 | 2,285.3 |
\u00a0
A part of the finance lease assets is encumbered (securitised) because of the asset backed securitisation transactions concluded by the Group. The total value of the securitised finance lease assets amounts to EUR\u00a05,179.4\u00a0million (2023: EUR\u00a04,256.2\u00a0million). For further details on the transactions refer to Note\u00a029 of the consolidated financial statements.
In the event of legal proceeding taken against a customer that is in default, the vehicle would be recovered and as such the fair value of that vehicle less costs to recover would be considered collateral and reduce significantly any loss on default.
\u00a0
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
VAT and other taxes | 786.5 | 852.8 |
Prepaid motor vehicle tax and insurance premiums | 253.0 | 236.2 |
Reclaimable damages | 23.1 | 16.3 |
Prepaid expenses and accrued income | 749.3 | 645.0 |
Reinsurance contract assets\u00a0(1) | 51.1 | 52.3 |
Insurance contract assets\u00a0(1) | \u2212 | 0.8 |
Rebates from dealers and manufacturers | 640.6 | 612.3 |
Other | 658.7 | 535.3 |
Total | 3,162.3 | 2,951.0 |
|
\u00a0
Balances written-off from other receivables were not significant for the year ending 31\u00a0December 2024 and 2023.
The Expected Credit Losses for Rebates and bonuses and commission receivable, Reclaimable damages, Reinsurance assets and Insurance Contract assets amount to EUR\u00a01.3\u00a0million (2023: EUR\u00a07.6\u00a0million). These credit losses are based on observable events during the period.
", "dimensions": { "concept": "ifrs-full:DisclosureOfTradeAndOtherReceivablesExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_5c00c999-23bf-4c36-9501-e7b4c29e47e3": { "value": "Other receivables and prepayments include prepayments in respect of expenses attributable to a subsequent period plus amounts still to be received. These amounts are valued at cost. For recognition and measurement of Reinsurance assets and Insurance contract assets reference is made to the insurance policy. For those financial assets measured at amortised cost the Group has excluded them as part of the expected loss model (see Lease receivable from customers policy) and instead any impairment will be based on observable events.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherReceivablesExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_8d38b1ba-3b4c-40f1-8a70-6646d52d2816": { "value": "In the consolidated statement of cash flows and consolidated balance sheet, cash and cash equivalents comprise of cash at hand, central bank deposits, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts are shown within borrowings in liabilities on the consolidated balance sheet. Cash and cash equivalents are defined as short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. The short-term characteristic of a cash equivalent is generally taken as a term of three months or less from the date of acquisition. Cash and cash equivalents are measured at amortised cost.
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Cash and balances at central banks | 4,335.6 | 3,535.6 |
Cash at bank and on hand | 640.4 | 370.8 |
Short-term bank deposits | 47.0 | 90.6 |
Cash and cash equivalents excl. bank overdrafts | 5,023.0 | 3,997.0 |
Bank overdrafts | (567.6) | (315.3) |
Balance as at for the purpose of the statement of cash flows | 4,455.3 | 3,681.6 |
Mandatory reserve deposits | 122.0 | 107.3 |
\u00a0
All cash and balances at central banks are available at call except for the mandatory reserve deposits at the Dutch Central Bank. These reserve cash deposits are the so-called minimum reserves required to be held with respective national banks for successive periods of four to five weeks as part of the monetary policy of the European Central Bank. Thanks to cash reserve requirements, banks depend on the European Central Bank\u2019s liquidity\u2011providing mechanism for their liquidity needs.\u00a0The mandatory reserve deposits form part of \u201cCash and balances at central banks\u201d.
As the Group operates its own insurance and re-insurance program, the cash balance includes funds required for this business.
The average interest rate on the outstanding cash and balances at central banks is 2.8% (2023: 3.8%).
Cash and cash equivalent amounts are only held with financial institutions that have an investment grade credit rating, so the low-risk exemption has been applied and no expected credit loss has been applied to these balances.
The Group has pledged part of its short-term deposits to fulfil collateral requirements. Refer to Note\u00a029 for further details.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_383caa10-6983-4f3c-bd0e-88c645e6043c": { "value": "In the consolidated statement of cash flows and consolidated balance sheet, cash and cash equivalents comprise of cash at hand, central bank deposits, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts are shown within borrowings in liabilities on the consolidated balance sheet. Cash and cash equivalents are defined as short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. The short-term characteristic of a cash equivalent is generally taken as a term of three months or less from the date of acquisition. Cash and cash equivalents are measured at amortised cost.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyToDetermineComponentsOfCashAndCashEquivalents", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_e8a6103f-ab9e-45c7-9b0e-98c05201834e": { "value": "Group companies operate various employee benefit schemes. The schemes are generally funded through payments to insurance companies or trustee-administered funds, determined by periodic actuarial calculations. The Group has defined benefit and defined contribution pension plans as well as other post-employment benefits.
A defined contribution plan is a pension plan under which the Group pays fixed contributions to publicly or privately administered pension insurance plans on a mandatory, contractual or voluntary basis. The Group has no further payment obligations once the pension contributions have been paid if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. Contributions to defined contribution pension plans are recognised as expenses in the consolidated income statement when they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.
A defined benefit plan is a pension plan that is not a defined contribution plan. Typically, defined benefit plans define an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors, such as age, years of service and compensation.
The Group\u2019s net obligation in respect of defined benefit pension plans is calculated separately for each plan by estimating the amount of future benefits that employees have earned in return for their services in the current and prior periods. The present value of the defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The benefit is discounted at the yield at the balance sheet date on high quality corporate bonds denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension obligation.
The net benefit obligation recognised in the balance sheet is the present value of the defined benefit obligation at the balance sheet date together with adjustments for unrecognised past-service costs less the fair value of the plan assets. For determining the pension expense, the expected return on plan assets is determined using a high-quality corporate bond rate identical to the discount rate used in determining the defined benefit obligation.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity in other comprehensive income in the period in which they arise without recycling to the consolidated income statement. Past-service costs are recognised immediately in the income statement.
Settlements and curtailments invoke immediate recognition in the income statement of the relevant change in the present value of the defined benefit obligations and in the market value of the plan assets. A settlement is an early termination of all or part of the defined benefit obligation. A curtailment occurs when the Group is demonstrably committed to materially reducing the number of employees in the defined benefit plan or the pension benefits for future services.
Further details are provided in Note\u00a031 \u201cRetirement benefit obligations and long-term benefits\u201d.
Some Group companies provide other long-term employment benefits to their employees based on local legal requirements. These benefits mainly comprise medium-term bonus and profit-sharing schemes, and extra leave entitlements.
The Group recognises a liability and an expense for bonuses and profit-sharing, based on a formula that takes into consideration the profit attributable to the Group\u2019s shareholders after certain adjustments. The Group recognises a provision where contractually obliged or where there is a past practice that has created a constructive obligation.
Termination benefits are payable when employment is terminated by the Group before the normal retirement date, or whenever an employee accepts voluntary redundancy in exchange for these benefits. The Group recognises termination benefits when the entity has a detailed formal plan to terminate the employment of current employees without possibility of withdrawal. In the case of an offer made to encourage voluntary redundancy, the termination benefits are measured based on the number of employees expected to accept the offer. Benefits falling due more than 12\u00a0months after the end of the reporting period are discounted to their present value.
The present value of the pension obligations depends on a number of factors that are determined on an actuarial basis using a number of assumptions. The assumptions used in determining the net cost/(income) for pensions include the discount rate, inflation, expected return on plan assets, salary rises and mortality rates. Any changes in these assumptions will impact the carrying amount of pension obligations, but the discount rate is the most significant factor that will change year on year.
The Group determines the appropriate discount rate at the end of each year. This is the interest rate that is used to determine the present value of estimated future cash outflows expected to be required to settle the pension obligations. In determining the appropriate discount rate, the Group considers the interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid and that have terms to maturity approximating the terms of the related pension obligation.
Further details are provided in Note\u00a031 Retirement benefit obligations and long-term benefits.
The breakdown of staff expenses is as follows:
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Wages and salaries | (882.8) | (659.3) |
Social security charges | (163.3) | (120.8) |
Defined benefit post-employment costs | (7.5) | (4.3) |
Other staff costs | (126.9) | (151.7) |
Total | (1,180.5) | (936.1) |
\u00a0
The average number of staff employed (including temporary staff) by the Group during the year was 14,455 (2023: 12,505). At year-end, the full time equivalent number of staff employed by the Group was 12,661 (2023: 14,578).
The breakdown of the components of the defined benefit pension cost is identified in Note\u00a031.
The Group operates a number of defined contribution and defined benefit pension plans with the most significant plans being in France, Belgium, Germany, Italy and Switzerland. It also operates post-employment benefit plans, the majority of which are unfunded, where the Group meets the benefit payment obligation as it falls due. The post-employment benefit plans are for legally required termination indemnities, which are payable at either the retirement date or the date the employee leaves the Group. The amount of the benefit depends on the length of service of the employee at the dismissal or retirement date.
The main defined contribution plans provided to employees of the Group are located in France. They include state pension plans and other national pension plans such as ARRCO and AGIRC, as well as pension schemes put in place by some entities of the Group for which the only commitment is to pay annual contributions (PERCO).
The Group has sponsored defined benefits plans that are final salary pension plans, which provide benefits to members in the form of a guaranteed level of pension payable for life. The level of benefits provided depends on members\u2019 length of service and their salary in the final years leading up to retirement. In the plans, pensions generally do not receive inflationary increases once in payment.
The charge for the year for defined contribution pension plans (net of amounts capitalised) was EUR\u00a045.9\u00a0million (2023: EUR\u00a039.7\u00a0million).
The majority of the defined benefit pension plans are unfunded. The assets of these plans are held separately from those of the Group, in independently administered funds, in accordance with statutory requirements or local practice in the relevant jurisdiction. The responsibility for the governance of the funded retirement benefit plans, including investment and funding decisions, lies with the Trustees of each scheme.
Employer contributions are made in accordance with the terms of each plan and may vary from year to year. Employer contributions made to funded pension plans in the year ended 31\u00a0December 2024 were EUR\u00a03.8\u00a0million (2023: EUR\u00a03.5\u00a0million). The Group expects to contribute EUR\u00a03.6\u00a0million to its pension plans in 2025.
\u00a0
(in EUR million) | 2024 | 2023 |
|---|---|---|
Current service cost including social security contributions | 2.0 | 2.2 |
Employee contributions | (0.2) | (0.2) |
Past service cost/curtailments | (0.3) | \u2212 |
Net interest | 0.4 | 0.4 |
Components recognised in income statement | 1.9 | 2.3 |
Actuarial gains and losses due to assets\u00a0(1) | (2.1) | 0.4 |
Actuarial gains and losses due to changes in demographic assumptions | 0.1 | (0.4) |
Actuarial gains and losses due to changes in economical and financial assumptions | 1.9 | 0.7 |
Actuarial gains and losses due to experience | 0.7 | 3.4 |
Change in asset ceiling | 0.2 | \u2212 |
Components recognised in unrealised or deferred gains and losses | 0.8 | 4.1 |
Total components of the cost of the defined benefits | 2.7 | 6.5 |
|
A summary of the net pension plan assets and retirement benefit obligations on the Consolidated balance sheet is as follows:
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
A\u00a0\u2013 Present value of defined benefit obligations | 59.5 | 60 |
B\u00a0\u2013 Fair value of plan assets | (55.2) | (51.9) |
C\u00a0\u2013 Asset ceiling | \u2212 | \u2212 |
D= A\u00a0\u2013 B + C = Deficit of funded plans recorded in the balance sheet | 4.3 | 8.2 |
E\u00a0\u2013 Present value of unfunded defined benefit obligations | 8.6 | 9.8 |
D + E = Total deficit recorded in the balance sheet | 12.9 | 18 |
\u00a0
Post-employment benefit plans include annuity payments, end-of-career indemnities as well as mixed plans (cash balance). Annuity payments are added to pension plans paid by state and mandatory benefit plans.
The present values of defined benefit obligations have been valued by independent qualified actuaries on an annual basis.
Changes in the present value of defined benefit obligations:
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Balance at 1\u00a0January | 69.8 | 17.3 |
Current service cost including social security contributions | 2.4 | 2.1 |
Employee contributions | 0.3 | 0.4 |
Past service cost/curtailments | (0.3) | \u2212 |
Settlement/Employer contributions to plan assets | (0.1) | \u2212 |
Net interest | 2.0 | 1.8 |
Actuarial gains and losses due to assets | \u2212 | 1 |
Actuarial gains and losses due to changes in demographic assumptions | 0.1 | (0.4) |
Actuarial gains and losses due to changes in economical and financial assumptions | 1.9 | 0.7 |
Actuarial gains and losses due to experience | 0.7 | 3.2 |
Foreign exchange adjustment | (0.1) | \u2212 |
Benefit payments | (5.4) | (8) |
Change in scope | \u2212 | 51.6 |
Transfers and others | (3.1) | \u2212 |
Balance at 31\u00a0December | 68.2 | 69.8 |
\u00a0
Changes in fair value of plan assets and separate assets:
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Balance at 1\u00a0January | 51.9 | 13.8 |
Expected return on plan assets | 1.5 | 1.5 |
Actuarial gains and losses due to assets | 2.1 | (0.4) |
Actuarial gains and losses due to experience | \u2212 | (0.2) |
Foreign exchange adjustment | (0.1) | 0.6 |
Employee contributions | 0.5 | 0.6 |
Employer contributions to plan assets | 3.7 | 3.3 |
Benefit payments | (1.2) | (7.3) |
Change in scope | \u2212 | 40.0 |
Transfers and others | (3.1) | \u2212 |
Balance at 31\u00a0December | 55.2 | 51.9 |
Funds only contain quoted investments, the breakdown of the plan assets is as follows:
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Bonds | 16.47% | 17.60% |
Equities | 19.11% | 17.30% |
Money market instruments | 3.12% | 1.50% |
Property | 3.86% | 4.20% |
Other | 57.44% | 59.40% |
\u00a0
The fair value of assets is used to determine the funding level of the plans to enable them to be sufficient to cover the benefits that have accrued to Group members after allowing for expected increases in future earnings and pensions. The actual returns on plan and separate assets were:
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Plan assets | 3.7 | 0.9 |
Separate assets | \u2212 | \u2212 |
\u00a0
The expected return on plan assets is determined by considering the current level of expected returns on risk free investments (primarily government bonds), the historical level of the risk-free premium associated with the respective asset classes and the expectations for future returns on each asset class. The expected return for each asset class was then weighted based on the target asset allocation to develop the expected long-term rate of return on assets. The expected returns of the individual plans have been weighted based on the fair value of the assets of the plans to determine the average expected return on plan assets.
\u00a0
The principal assumptions used to determine the actuarial present value of benefit obligations and pension charges and credits are detailed below (shown as weighted averages):
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Discount rate | \u00a0 | \u00a0 |
Europe | 2.58% | 3.50% |
Long-term inflation | \u00a0 | \u00a0 |
Europe | 1.46% | 2.30% |
Future salary increase | \u00a0 | \u00a0 |
Europe | 0.56% | 0.40% |
Average remaining working lifetime of employees (in years) | \u00a0 | \u00a0 |
Europe | 6.7 | 9.4 |
Duration (in years) | \u00a0 | \u00a0 |
Europe | 7.5 | 9.5 |
\u00a0
The assumptions described above have been applied on post-employment benefit plans.
The assumptions by geographical area are averages weighted by the present value of the liabilities (DBO). The yield curves used to discount the liabilities are corporate AA yield curves (source: Merrill Lynch) observed at the end of October for GBP and EUR, and corrected at the end of December if the decrease in discount rates had a significant impact. Inflation rates used are the long-term targets of the central banks of the monetary areas above.
Significant actuarial assumptions for the determination of pension plan liabilities are the discount rate, inflation rate and salary increase. The sensitivity analysis below has been provided by local actuaries on an approximate basis based on changes in the assumptions occurring at the end of the year, assuming that all other assumptions are held constant, and the effect of interrelationships is excluded. The effect on plan liabilities is as follows:
(Percentage of item measured) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Variation of +0.5% in discount rate | \u00a0 | \u00a0 |
Impact on the present value of defined benefit obligations at 31\u00a0December | (3.30)% | (3.90)% |
Variation of +0.5% in long-term inflation | \u00a0 | \u00a0 |
Impact on the present value of defined benefit obligations at 31\u00a0December | 1.04% | 2.50% |
Variation of +0.5% in future salary increases | \u00a0 | \u00a0 |
Impact on the present value of defined benefit obligations at 31\u00a0December | 2.03% | 2.80% |
\u00a0
The disclosed sensitivities are averages of the variations weighted by the present value of defined benefit obligations.
\u00a0
The expected maturity analysis of undiscounted post-employment benefits is:
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
N+1 | 1.8 | 3.3 |
N+2 | 4.9 | 4.5 |
N+3 | 5.6 | 3.6 |
N+4 | 5.0 | 5.0 |
N+5 | 4.6 | 5.6 |
N+6 to N+10 | 21.8 | 29.0 |
\u00a0
Some entities of the Group may award their employees other long-term benefits, like long-term deferred variable remunerations, time saving accounts (French Term) \u201ccomptes \u00e9pargne temps\u201d or long service awards. They are different from post-employment benefits and termination benefits, which are not fully due within twelve months following the financial year during which the services are rendered by the employees.
The net balance of other long-term benefits recorded in the balance sheet as at 31\u00a0December 2024 is EUR\u00a017.8\u00a0million (2023: EUR\u00a016.2\u00a0million). The total amount of charges for other long-term benefits in the income statement for the period ending 31\u00a0December 2024 is EUR\u00a03.7\u00a0million (2023: EUR\u00a01.9\u00a0million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_7f1f99ef-dab3-4b4a-98e6-9bebd49d3d9d": { "value": "Group companies operate various employee benefit schemes. The schemes are generally funded through payments to insurance companies or trustee-administered funds, determined by periodic actuarial calculations. The Group has defined benefit and defined contribution pension plans as well as other post-employment benefits.
A defined contribution plan is a pension plan under which the Group pays fixed contributions to publicly or privately administered pension insurance plans on a mandatory, contractual or voluntary basis. The Group has no further payment obligations once the pension contributions have been paid if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. Contributions to defined contribution pension plans are recognised as expenses in the consolidated income statement when they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.
A defined benefit plan is a pension plan that is not a defined contribution plan. Typically, defined benefit plans define an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors, such as age, years of service and compensation.
The Group\u2019s net obligation in respect of defined benefit pension plans is calculated separately for each plan by estimating the amount of future benefits that employees have earned in return for their services in the current and prior periods. The present value of the defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The benefit is discounted at the yield at the balance sheet date on high quality corporate bonds denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension obligation.
The net benefit obligation recognised in the balance sheet is the present value of the defined benefit obligation at the balance sheet date together with adjustments for unrecognised past-service costs less the fair value of the plan assets. For determining the pension expense, the expected return on plan assets is determined using a high-quality corporate bond rate identical to the discount rate used in determining the defined benefit obligation.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity in other comprehensive income in the period in which they arise without recycling to the consolidated income statement. Past-service costs are recognised immediately in the income statement.
Settlements and curtailments invoke immediate recognition in the income statement of the relevant change in the present value of the defined benefit obligations and in the market value of the plan assets. A settlement is an early termination of all or part of the defined benefit obligation. A curtailment occurs when the Group is demonstrably committed to materially reducing the number of employees in the defined benefit plan or the pension benefits for future services.
Further details are provided in Note\u00a031 \u201cRetirement benefit obligations and long-term benefits\u201d.
Some Group companies provide other long-term employment benefits to their employees based on local legal requirements. These benefits mainly comprise medium-term bonus and profit-sharing schemes, and extra leave entitlements.
The Group recognises a liability and an expense for bonuses and profit-sharing, based on a formula that takes into consideration the profit attributable to the Group\u2019s shareholders after certain adjustments. The Group recognises a provision where contractually obliged or where there is a past practice that has created a constructive obligation.
Termination benefits are payable when employment is terminated by the Group before the normal retirement date, or whenever an employee accepts voluntary redundancy in exchange for these benefits. The Group recognises termination benefits when the entity has a detailed formal plan to terminate the employment of current employees without possibility of withdrawal. In the case of an offer made to encourage voluntary redundancy, the termination benefits are measured based on the number of employees expected to accept the offer. Benefits falling due more than 12\u00a0months after the end of the reporting period are discounted to their present value.
The present value of the pension obligations depends on a number of factors that are determined on an actuarial basis using a number of assumptions. The assumptions used in determining the net cost/(income) for pensions include the discount rate, inflation, expected return on plan assets, salary rises and mortality rates. Any changes in these assumptions will impact the carrying amount of pension obligations, but the discount rate is the most significant factor that will change year on year.
The Group determines the appropriate discount rate at the end of each year. This is the interest rate that is used to determine the present value of estimated future cash outflows expected to be required to settle the pension obligations. In determining the appropriate discount rate, the Group considers the interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid and that have terms to maturity approximating the terms of the related pension obligation.
Further details are provided in Note\u00a031 Retirement benefit obligations and long-term benefits.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_e3e6d5ee-0bd4-42d7-afca-e10d7fe1bd9c": { "value": "Termination benefits are payable when employment is terminated by the Group before the normal retirement date, or whenever an employee accepts voluntary redundancy in exchange for these benefits. The Group recognises termination benefits when the entity has a detailed formal plan to terminate the employment of current employees without possibility of withdrawal. In the case of an offer made to encourage voluntary redundancy, the termination benefits are measured based on the number of employees expected to accept the offer. Benefits falling due more than 12\u00a0months after the end of the reporting period are discounted to their present value.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTerminationBenefits", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_fc3acd10-c5ce-42ae-a26a-4a3113952b9b": { "value": "Provisions for restructuring costs and legal claims are recognised when the Group has a present legal or constructive obligation because of past events, it is probable that an outflow of resources will be required to settle the obligation, and the amount could be reliably estimated.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.
Provisions are measured at the present value of management\u2019s best estimate of the expenditure expected required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to passage of time is recognised as interest expense.
The risk of damage to owned Group vehicles is part of the IFRS\u00a015 allocation of revenue and IAS\u00a037 provisioning, whereas insurance contracts issued to customers for accepting significant insurance risk is subject to IFRS\u00a017 accounting (see Insurance contracts policy). The Group provides customers with an own damage and repair cover in exchange of the payment of a monthly fee. Own damage revenues are recorded in the caption \u201cServices Revenues\u201d and revenue is recognised on a straight-line basis over the duration of the contract (unless the expected release of risk differs materially from a straight-line basis). Further details are provided in Note\u00a08 Revenues and cost of revenues. Where the fees are unearned based on the invoiced amounts, this amount is deferred income included within under \u201cOther receivables, prepayments and contract assets\u201d caption in the consolidated balance sheet (refer to Note\u00a024).
Damage services provisions are measured at the amount of the \u201cbest estimate\u201d expected expenditure required to settle the present obligations to repair the damage at the reporting date. An estimate for Incurred But Not Reported (IBNR) and Incurred But Not Enough Reserved (IBNER) is made to determine appropriate damage provision levels. These estimates are based on historical data of accident frequency in the local market and the cost per claim updated for current assumptions. The measurement includes a margin for risks and uncertainties that is inherent to the historical data adjusted for recent pricing developments. The damage service provision is expected to be recovered or settled within a maximum of 12\u00a0months. Expenses for damage services are expensed to the income statement when incurred and the best estimate of the provision is updated at each reporting period, with any adjustment recognised along with the expenses incurred in \u201cCost of Services Revenues\u201d caption in the income statement.
Where there is a stop-loss policy in place, limiting the risk of losses above a set level, provisions are booked only up to the level of the stop-loss. Beyond that level, all claims are debited to the reinsurance provider of the stop-loss cover. Any stop-loss cover on individual incidents is also taken into account in evaluation of the provision for IBNR and IBNER. Gross claim costs are reduced to the level of cap per incident. Even where stop-loss cover is in place, if total claims are anticipated to be below the level of premium and stop-loss cover, then profit is booked in the normal way.
For litigation, when there is a legal or constructive obligation and it is more likely than not that there will be an outflow of benefits which can be measured reliably, the best estimate of the future outflow of resources has been recognised. In extremely rare situations where no reliable estimate can be made yet on claims expected, no provision will be recognised in the balance sheet but information about a contingent liability will be disclosed.
Every quarter it is assessed whether the litigation provisions are still sufficient and or still relevant.\u00a0
Further details are provided in Note\u00a032 Provisions.
The Group provisions are split as below for General and Damage risk provisions recognised under IAS\u00a037 and insurance provisions recognised in accordance with IFRS\u00a017.
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Damage risk and Legal & other | 487.9 | 404.1 |
Insurance contracts | 706.7 | 607.1 |
Total | 1,194.6 | 1,011.2 |
\u00a0
(in EUR million) | Damage risk | Legal & Other | Total |
|---|---|---|---|
At 1\u00a0January 2024 | 137.5 | 266.7 | 404.1 |
Scope changes | (0.0) | 0.0 | (0.0) |
Charge to income statement | 29.6 | 130.3 | 160.0 |
Utilised and released | (16.8) | (63.7) | (80.5) |
Reclassification | (1.5) | 5.2 | 3.7 |
Currency translation differences | (0.2) | 0.8 | 0.6 |
At 31\u00a0December 2024 | 148.5 | 339.3 | 487.9 |
Current | 73.5 | 107.9 | 181.4 |
Non-current | 75.0 | 231.4 | 306.4 |
At 31\u00a0December 2024 | 148.5 | 339.3 | 487.9 |
\u00a0
(in EUR million) | Damage risk | Legal & Other | Total |
|---|---|---|---|
At 1\u00a0January 2023 | 80.5 | 56.4 | 136.9 |
Prior period error correction | \u2212 | 101.7 | 101.7 |
Scope changes | 48.6 | 87.2 | 135.8 |
Charge to income statement | 15.8 | 26.3 | 42.1 |
Utilised and released | (7.7) | (5.2) | (12.9) |
Reclassification | 0.2 | (0.2) | \u2212 |
Currency translation differences | 0.0 | 0.5 | 0.5 |
At 31\u00a0December 2023 | 137.5 | 266.7 | 404.1 |
Current | 68.4 | 83.3 | 151.7 |
Non-current | 69.0 | 183.4 | 252.4 |
At 31\u00a0December 2023 | 137.5 | 266.7 | 404.1 |
\u00a0
The provision for damage risk is the \u201cbest estimate\u201d expected expenditure required to settle the present obligations to repair the damage at the reporting date including IBNR and IBNER provisions (see policy Note\u00a03.4.17). The majority of damage service provisions are expected to be recovered or settled within 12\u00a0months.
Litigation provisions have been set up to cover legal and administrative (including tax) proceedings that arise in the ordinary course of business. These provisions are not employee related. Legal provisions depend on court proceedings.
The prior year error correction in 2023 mainly relates to the provision for motor finance commissions for the amount of EUR\u00a069.3\u00a0million, and a provision regarding consumer law breaches relating to certain products (Employee Car Ownership Scheme) for the amount of EUR\u00a024.5\u00a0million. For further details refer to the note\u00a03.1 Basis of preparation \u2013 section \u201cerrors\u201d.
Following the ruling by the Court of Appeal in October\u00a02024, the provision for motor finance commissions was increased to EUR\u00a093\u00a0million to include car finance agreements involving commission arrangements, other than motor finance commissions, to reflect the potential extension of the scope of liability resulting from the Court of Appeal decision. As at the end of 2024, the provision regarding consumer law breaches relating to certain products (Employee Car Ownership Scheme) amounts to EUR\u00a026.6\u00a0million.
The Company has recognised provisions for tax litigation and disputes across Europe and in Brazil. The main provisions are recorded in Italy regarding vehicle registration tax, road tax and VAT, amounting to EUR\u00a066.2\u00a0million, and in Spain for VAT, totalling EUR\u00a056.0\u00a0million.
For information on contingencies refer to Note 39 Contingencies.
\u00a0
\u00a0
The insurance provision breaks down as follows:
(in EUR million) | As at 31\u00a0December 2024 | As at 31\u00a0December 2023 | ||||
|---|---|---|---|---|---|---|
Gross | Reinsurance | Net | Gross | Reinsurance | Net | |
Insurance liabilities | (706.7) | 51.1 | (655.7) | (606.6) | 52.3 | (554.3) |
Insurance asset | \u2212 | \u2212 | \u2212 | 0.8 | (0.5) | 0.3 |
Net Insurance provisions | (706.7) | 51.1 | (655.7) | (605.9) | 51.9 | (554.0) |
\u00a0
The following table provides a reconciliation of the net insurance liability for all insurance products issued by the Group:
\u00a0
(in EUR million) | Liabilities for remaining coverage | Liabilities for incurred claims | |||
|---|---|---|---|---|---|
Excluding loss component | Loss | Estimates of the present value of\u00a0future cash flows | Risk | Total | |
Insurance contract liabilities as at 1\u00a0January 2024 | 39.7 | (5.7) | (625.1) | (15.6) | (606.6) |
Insurance contract assets as at 1\u00a0January 2024 | 2.8 | \u2212 | (2.0) | (0.0) | 0.8 |
Net insurance contract (net assets/(liabilities) as\u00a0at\u00a01\u00a0January 2024 | 42.5 | (5.7) | (627.1) | (15.6) | (605.9) |
Insurance revenue | 541.9 | \u2212 | \u2212 | \u2212 | 541.9 |
Insurance expenses | (2.4) | 1.2 | (396.9) | 1.0 | (397.0) |
Incurred claims and other expenses | \u2212 | \u2212 | (530.3) | (6.7) | (537.0) |
Losses on onerous contracts and reversals of those loses | \u2212 | 1.2 | \u2212 | \u2212 | 1.2 |
Insurance acquisition cash flows amortisation | (2.4) | \u2212 | \u2212 | \u2212 | (2.4) |
Changes to liabilities for incurred claims | \u2212 | \u2212 | 133.4 | 7.7 | 141.1 |
Insurance result | 539.6 | 1.2 | (396.9) | 1.0 | 144.9 |
Insurance finance expenses | \u00a0 | (0.2) | (29.6) | (1.0) | (30.8) |
Effect of movements in exchange rates | (4.7) | 0.3 | (1.0) | 0.1 | (5.3) |
Total changes in the statement of comprehensive income | 534.8 | 1.3 | (427.4) | 0.2 | 108.9 |
Premiums received/paid | (529.5) | \u2212 | \u2212 | \u2212 | (529.5) |
Claims and other expenses paid | \u2212 | \u2212 | 311.5 | \u2212 | 311.5 |
Total cash flows | (529.5) | \u2212 | 311.5 | \u00a0 | (218.1) |
Other movements | (28.1) | (7.7) | 43.2 | 1.0 | 8.4 |
Net insurance contract (net assets/(liabilities) as\u00a0at\u00a031\u00a0December 2024) | 19.7 | (12.1) | (699.9) | (14.5) | (706.7) |
Insurance contract liabilities as at 31\u00a0December 2024 | 19.7 | (12.1) | (699.9) | (14.5) | (706.7) |
Insurance contract assets as at 31\u00a0December 2024 | \u2212 | \u2212 | \u2212 | \u2212 | \u2212 |
Net insurance contract (net assets/(liabilities) as\u00a0at\u00a031\u00a0December 2024) | 19.7 | (12.1) | (699.9) | (14.5) | (706.7) |
(in EUR million) | Liabilities for remaining coverage | Liabilities for incurred claims | |||
|---|---|---|---|---|---|
Excluding loss component | Loss | Estimates of the present value of\u00a0future cash flows | Risk | Total | |
Insurance contract liabilities as at 1\u00a0January 2023 | 21.2 | (0.2) | (181.0) | (4.0) | (164.0) |
Insurance contract assets as at 1\u00a0January 2023 | 2.3 | \u2212 | (1.6) | (0.0) | 0.7 |
Net insurance contract (net assets/(liabilities) as\u00a0at\u00a01\u00a0January 2023 | 23.6 | (0.2) | (182.6) | (4.0) | (163.2) |
Insurance contract liabilities | (1.7) | (3.2) | (385.9) | (13.0) | (403.7) |
Insurance contract assets | \u2212 | \u2212 | \u2212 | \u2212 | \u2212 |
Net insurance liabilities on acquisition | (1.7) | (3.2) | (385.9) | (13.0) | (403.7) |
Insurance revenue | 433.4 | \u2212 | \u2212 | \u2212 | 433.4 |
Insurance expenses | (15.9) | (5.5) | (307.2) | (7.1) | (335.6) |
Incurred claims and other expenses | \u2212 | \u2212 | (425.1) | (8.4) | (433.5) |
Losses on onerous contracts and reversals of those loses | \u2212 | (5.5) | \u2212 | \u2212 | (5.5) |
Insurance acquisition cash flows amortisation | (15.9) | \u2212 | \u2212 | \u2212 | (15.9) |
Changes to liabilities for incurred claims | \u2212 | \u2212 | 118.0 | 1.2 | 119.2 |
Insurance result | 417.5 | (5.5) | (307.2) | (7.1) | 97.8 |
Insurance finance expenses | \u2212 | (0.0) | (8.0) | \u2212 | (8.0) |
Effect of movements in exchange rates | 12.0 | (0.1) | 4.1 | (0.0) | 16.0 |
Total changes in the statement of comprehensive income | 429.5 | (5.6) | (311.1) | (7.1) | 105.8 |
Premiums received/paid | (408.4) | \u2212 | \u2212 | \u2212 | (408.4) |
Claims and other expenses paid | \u2212 | \u2212 | 261.4 | \u2212 | 261.4 |
Insurance acquisition costs | 2.1 | \u2212 | \u2212 | \u2212 | 2.1 |
Total cash flows | (406.3) | \u2212 | 261.4 | \u2212 | (144.9) |
Other movements | \u2212 | \u2212 | 0.2 | \u2212 | 0.2 |
Net insurance contract (net assets/(liabilities) as\u00a0at\u00a031\u00a0December 2023) | 45.1 | (9.0) | (617.9) | (24.1) | (605.9) |
Insurance contract liabilities as at 31\u00a0December 2023 | 42.3 | (9.0) | (615.9) | (24.0) | (606.6) |
Insurance contract assets as at 31\u00a0December 2023 | 2.8 | \u2212 | (2.0) | (0.0) | 0.8 |
Net insurance contract (net assets/(liabilities) as\u00a0at\u00a031\u00a0December 2023) | 45.1 | (9.0) | (617.9) | (24.1) | (605.9) |
The following table provides a reconciliation of the reinsurance liability for reinsurance contracts issued by the Group:
\u00a0
(in EUR million) | Liabilities for remaining coverage | Liabilities for incurred claims | |||
|---|---|---|---|---|---|
\u00a0 | Remaining coverage | Estimates of the present value of\u00a0future cash flows | Risk | Total | |
Reinsurance contract liabilities as at 1\u00a0January 2024 | \u00a0 | (0.5) | \u2212 | \u2212 | (0.5) |
Reinsurance contract assets as at 1\u00a0January 2024 | \u00a0 | 16.5 | 33.2 | 2.6 | 52.3 |
Net reinsurance contract (net assets/(liabilities) as\u00a0at\u00a01\u00a0January 2024 | \u00a0 | 16.1 | 33.2 | 2.6 | 51.9 |
Reinsurance expenses | \u00a0 | (10.9) | \u2212 | \u2212 | (10.9) |
Claims recovered | \u00a0 | \u2212 | 12.6 | \u2212 | 12.6 |
Effect of changes in the risk of reinsurers non\u2011performance | \u00a0 | \u2212 | \u2212 | \u2212 | \u2212 |
Changes that relate to past service\u00a0\u2013 adjustments to\u00a0insurred claims | \u00a0 | \u2212 | 0.1 | (0.0) | 0.1 |
Net income/(Expenses) from Reinsurance contracts held | \u00a0 | (10.9) | 12.7 | (0.0) | 1.8 |
Finance income from reinsurance contracts held | \u00a0 | \u2212 | 0.1 | \u2212 | 0.1 |
Total changes in the statement of comprehensive income | \u00a0 | (10.9) | 12.8 | (0.0) | 1.9 |
Premiums paid | \u00a0 | 0.1 | \u2212 | \u2212 | 0.1 |
Recoveries from reinsurance | \u00a0 | \u2212 | \u2212 | \u2212 | \u2212 |
Total cash flows | \u00a0 | 0.1 | \u2212 | \u2212 | 0.1 |
Other movements | \u00a0 | (2.0) | 0.0 | (0.9) | (2.8) |
Net insurance contract (net assets/(liabilities) as\u00a0at\u00a031\u00a0December 2024) | \u00a0 | 3.4 | 46.0 | 1.7 | 51.1 |
Reinsurance contract liabilities as at 31\u00a0December 2024 | \u00a0 | \u2212 | \u00a0 | \u00a0 | \u2212 |
Reinsurance contract assets as at 31\u00a0December 2024 | \u00a0 | 3.4 | 46.0 | 1.7 | 51.1 |
Net reinsurance contract (net assets/(liabilities) as\u00a0at\u00a031\u00a0December 2024) | \u00a0 | 3.4 | 46.0 | 1.7 | 51.1 |
(in EUR million) | Liabilities for remaining coverage | Liabilities for incurred claims | |||
|---|---|---|---|---|---|
\u00a0 | Remaining coverage | Estimates of the present value of\u00a0future cash flows | Risk | Total | |
Reinsurance contract liabilities as at 1\u00a0January 2023 | \u00a0 | (0.5) | \u2212 | \u2212 | (0.5) |
Reinsurance contract assets as at 1\u00a0January 2023 | \u00a0 | 0.4 | 9.7 | 0.2 | 10.3 |
Net reinsurance contract (net assets/(liabilities) as\u00a0at\u00a01\u00a0January 2023 | \u00a0 | (0.1) | 9.7 | 0.2 | 9.8 |
Insurance contract liabilities | \u00a0 | \u2212 | \u2212 | \u2212 | \u2212 |
Insurance contract assets | \u00a0 | 1.4 | 32.2 | 1.2 | 34.8 |
Net insurance liabilities on acquisition | \u00a0 | 1.4 | 32.2 | 1.2 | 34.8 |
Reinsurance expenses | \u00a0 | (2.6) | \u2212 | \u2212 | (2.6) |
Claims recovered | \u00a0 | 14.9 | 1.4 | 1.2 | 17.6 |
Effect of changes in the risk of reinsurers non\u2011performance | \u00a0 | \u2212 | 0.0 | \u2212 | 0.0 |
Changes that relate to past service\u00a0\u2013 adjustments to\u00a0insurred claims | \u00a0 | \u2212 | (9.0) | 0.0 | (9.0) |
Net income/(Expenses) from Reinsurance contracts held | \u00a0 | 12.4 | (7.6) | 1.2 | 5.9 |
Finance income from reinsurance contracts held | \u00a0 | \u2212 | 0.4 | \u2212 | 0.4 |
Total changes in the statement of comprehensive income | \u00a0 | 12.4 | (7.2) | 1.2 | 6.3 |
Premiums paid | \u00a0 | 1.0 | \u2212 | \u2212 | 1.0 |
Recoveries from reinsurance | \u00a0 | \u2212 | (1.4) | \u2212 | (1.4) |
Total cash flows | \u00a0 | 1.0 | (1.4) | \u2212 | (0.5) |
Other movements | \u00a0 | 1.4 | (0.0) | 0.0 | 1.4 |
Net insurance contract (net assets/(liabilities) as\u00a0at\u00a031\u00a0December 2023) | \u00a0 | 16.1 | 33.2 | 2.6 | 51.9 |
Reinsurance contract liabilities as at 31\u00a0December 2023 | \u00a0 | (0.5) | \u2212 | \u2212 | (0.5) |
Reinsurance contract assets as at 31\u00a0December 2023 | \u00a0 | 16.5 | 33.2 | 2.6 | 52.3 |
Net reinsurance contract (net assets/(liabilities) as\u00a0at\u00a031\u00a0December 2023) | \u00a0 | 16.1 | 33.2 | 2.6 | 51.9 |
Underwriting years | <\u00a02019 | 2020 | 2021 | 2022 | 2023 | 2024 | Total |
|---|---|---|---|---|---|---|---|
At end of accident year | 1,087.4 | 95.0 | 117.7 | 138.9 | 252.3 | 338.5 | \u00a0 |
| 1,080.8 | 90.0 | 113.7 | 202.5 | 408.6 | \u00a0 | \u00a0 |
| 1,066.1 | 98.7 | 207.3 | 224.5 | \u00a0 | \u00a0 | \u00a0 |
| 1,042.3 | 141.2 | 233.8 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| 1,865.8 | 152.0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| 1,892.6 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Estimate of cumulative claims | 1,892.6 | 152.0 | 233.8 | 224.5 | 408.6 | 338.5 | \u00a0 |
Cumulative payments to date | (1,754.0) | (114.1) | (121.8) | (152.1) | (216.5) | (142.3) | \u00a0 |
Gross undiscounted outstanding claim liabilities | 138.6 | 37.9 | 112.0 | 72.4 | 192.1 | 196.2 | 749.2 |
Effects of discounting | (5.5) | (2.3) | (6.0) | (4.1) | (7.9) | (9.6) | (35.2) |
Reinsurance contracts | (18.0) | (9.4) | (3.1) | (3.1) | (13.7) | (3.8) | (51.1) |
Gross outstanding claim liabilities net of\u00a0Reinsurance | 115.1 | 26.2 | 102.9 | 65.2 | 170.5 | 182.8 | 662.9 |
\u00a0
The expected maturity analysis of the gross outstanding liabilities is as follows:
\u00a0 | Up to 1 yr | 1-2 yrs | 2-5 yrs | >5 yrs | Total |
|---|---|---|---|---|---|
Insurance liabilities for incurred claims | 429.1 | 114.0 | 99.7 | 71.2 | 714.0 |
\u00a0
Underwriting years | <\u00a02019 | 2020 | 2021 | 2022 | 2023 | 2024 | Total |
|---|---|---|---|---|---|---|---|
At end of accident year | 32.8 | 6.6 | 6.8 | 5.7 | 21.1 | 4.7 | \u00a0 |
| 38.3 | 6.2 | 5.8 | 5.7 | 16.8 | \u00a0 | \u00a0 |
| 36.5 | 6.1 | 7.7 | 4.2 | \u00a0 | \u00a0 | \u00a0 |
| 31.9 | 8.1 | 7.6 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| 47.1 | 14.1 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| 51.6 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Estimate of cumulative claims | 51.6 | 14.1 | 7.6 | 4.2 | 16.8 | 4.7 | \u00a0 |
Cumulative payments to date | (32.3) | (3.2) | (3.9) | (0.5) | - | - | \u00a0 |
Gross undiscounted Reinsurance receivable | 19.3 | 10.9 | 3.7 | 3.7 | 16.8 | 4.7 | 59.1 |
Effects of discounting | (1.9) | (1.9) | (0.7) | (0.7) | (3.6) | (1.0) | (9.8) |
Effect of risk adjustment for non financial risk | 0.6 | 0.4 | 0.1 | 0.1 | 0.5 | 0.1 | 1.8 |
Gross outstanding Reinsurance receivable | 18.0 | 9.4 | 3.1 | 3.1 | 13.7 | 3.8 | 51.1 |
\u00a0
The expected maturity analysis of the gross reinsurance receivable is as follows:
\u00a0 | Up to 1 yr | 1-2 yrs | 2-5 yrs | >5 yrs | Total |
|---|---|---|---|---|---|
Reinsurance receivable | 30.6 | 8.2 | 7.2 | 5.1 | 51.1 |
As part of Ayvens\u2019 legal and compliance obligations, investigations in certain past business practices were initiated by Ayvens in Germany. The process is ongoing and no assessment of its outcome can be made before the investigations are further advanced of completed. Therefore, Ayvens is not in the position to assess the financial consequences, but, at this stage, it is not expected that the results of such investigations would have a material financial impact for the Group.
", "dimensions": { "concept": "ifrs-full:DisclosureOfProvisionsExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_bc67a0fd-ac57-4467-bcc2-514d3bf16f24": { "value": "Provisions for restructuring costs and legal claims are recognised when the Group has a present legal or constructive obligation because of past events, it is probable that an outflow of resources will be required to settle the obligation, and the amount could be reliably estimated.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.
Provisions are measured at the present value of management\u2019s best estimate of the expenditure expected required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to passage of time is recognised as interest expense.
The risk of damage to owned Group vehicles is part of the IFRS\u00a015 allocation of revenue and IAS\u00a037 provisioning, whereas insurance contracts issued to customers for accepting significant insurance risk is subject to IFRS\u00a017 accounting (see Insurance contracts policy). The Group provides customers with an own damage and repair cover in exchange of the payment of a monthly fee. Own damage revenues are recorded in the caption \u201cServices Revenues\u201d and revenue is recognised on a straight-line basis over the duration of the contract (unless the expected release of risk differs materially from a straight-line basis). Further details are provided in Note\u00a08 Revenues and cost of revenues. Where the fees are unearned based on the invoiced amounts, this amount is deferred income included within under \u201cOther receivables, prepayments and contract assets\u201d caption in the consolidated balance sheet (refer to Note\u00a024).
Damage services provisions are measured at the amount of the \u201cbest estimate\u201d expected expenditure required to settle the present obligations to repair the damage at the reporting date. An estimate for Incurred But Not Reported (IBNR) and Incurred But Not Enough Reserved (IBNER) is made to determine appropriate damage provision levels. These estimates are based on historical data of accident frequency in the local market and the cost per claim updated for current assumptions. The measurement includes a margin for risks and uncertainties that is inherent to the historical data adjusted for recent pricing developments. The damage service provision is expected to be recovered or settled within a maximum of 12\u00a0months. Expenses for damage services are expensed to the income statement when incurred and the best estimate of the provision is updated at each reporting period, with any adjustment recognised along with the expenses incurred in \u201cCost of Services Revenues\u201d caption in the income statement.
Where there is a stop-loss policy in place, limiting the risk of losses above a set level, provisions are booked only up to the level of the stop-loss. Beyond that level, all claims are debited to the reinsurance provider of the stop-loss cover. Any stop-loss cover on individual incidents is also taken into account in evaluation of the provision for IBNR and IBNER. Gross claim costs are reduced to the level of cap per incident. Even where stop-loss cover is in place, if total claims are anticipated to be below the level of premium and stop-loss cover, then profit is booked in the normal way.
For litigation, when there is a legal or constructive obligation and it is more likely than not that there will be an outflow of benefits which can be measured reliably, the best estimate of the future outflow of resources has been recognised. In extremely rare situations where no reliable estimate can be made yet on claims expected, no provision will be recognised in the balance sheet but information about a contingent liability will be disclosed.
Every quarter it is assessed whether the litigation provisions are still sufficient and or still relevant.\u00a0
Further details are provided in Note\u00a032 Provisions.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForProvisionsExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_5a33bb24-26dd-4dac-ae42-d7796ac165bd": { "value": "Provisions for restructuring costs and legal claims are recognised when the Group has a present legal or constructive obligation because of past events, it is probable that an outflow of resources will be required to settle the obligation, and the amount could be reliably estimated.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.
Provisions are measured at the present value of management\u2019s best estimate of the expenditure expected required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to passage of time is recognised as interest expense.
The risk of damage to owned Group vehicles is part of the IFRS\u00a015 allocation of revenue and IAS\u00a037 provisioning, whereas insurance contracts issued to customers for accepting significant insurance risk is subject to IFRS\u00a017 accounting (see Insurance contracts policy). The Group provides customers with an own damage and repair cover in exchange of the payment of a monthly fee. Own damage revenues are recorded in the caption \u201cServices Revenues\u201d and revenue is recognised on a straight-line basis over the duration of the contract (unless the expected release of risk differs materially from a straight-line basis). Further details are provided in Note\u00a08 Revenues and cost of revenues. Where the fees are unearned based on the invoiced amounts, this amount is deferred income included within under \u201cOther receivables, prepayments and contract assets\u201d caption in the consolidated balance sheet (refer to Note\u00a024).
Damage services provisions are measured at the amount of the \u201cbest estimate\u201d expected expenditure required to settle the present obligations to repair the damage at the reporting date. An estimate for Incurred But Not Reported (IBNR) and Incurred But Not Enough Reserved (IBNER) is made to determine appropriate damage provision levels. These estimates are based on historical data of accident frequency in the local market and the cost per claim updated for current assumptions. The measurement includes a margin for risks and uncertainties that is inherent to the historical data adjusted for recent pricing developments. The damage service provision is expected to be recovered or settled within a maximum of 12\u00a0months. Expenses for damage services are expensed to the income statement when incurred and the best estimate of the provision is updated at each reporting period, with any adjustment recognised along with the expenses incurred in \u201cCost of Services Revenues\u201d caption in the income statement.
Where there is a stop-loss policy in place, limiting the risk of losses above a set level, provisions are booked only up to the level of the stop-loss. Beyond that level, all claims are debited to the reinsurance provider of the stop-loss cover. Any stop-loss cover on individual incidents is also taken into account in evaluation of the provision for IBNR and IBNER. Gross claim costs are reduced to the level of cap per incident. Even where stop-loss cover is in place, if total claims are anticipated to be below the level of premium and stop-loss cover, then profit is booked in the normal way.
For litigation, when there is a legal or constructive obligation and it is more likely than not that there will be an outflow of benefits which can be measured reliably, the best estimate of the future outflow of resources has been recognised. In extremely rare situations where no reliable estimate can be made yet on claims expected, no provision will be recognised in the balance sheet but information about a contingent liability will be disclosed.
Every quarter it is assessed whether the litigation provisions are still sufficient and or still relevant.\u00a0
Further details are provided in Note\u00a032 Provisions.
As part of Ayvens\u2019 legal and compliance obligations, investigations in certain past business practices were initiated by Ayvens in Germany. The process is ongoing and no assessment of its outcome can be made before the investigations are further advanced of completed. Therefore, Ayvens is not in the position to assess the financial consequences, but, at this stage, it is not expected that the results of such investigations would have a material financial impact for the Group.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherProvisionsContingentLiabilitiesAndContingentAssetsExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_ab6fcf43-fd30-4421-ad00-56ac328bba94": { "value": "The insurance contracts issued are one of the services offered to the customers of the Group in addition to the lease of the vehicles and other related leasing services. Insurance contracts are contracts under which the Group accepts a significant risk \u2013 other than a financial risk \u2013 from a policyholder by agreeing to compensate the beneficiary on the occurrence of an uncertain future event by which he or she will be adversely affected. Contracts that have been classified as insurance at inception are not reclassified subsequently.
For measurement purposes, the insurance contracts are grouped into portfolios of insurance contracts that have similar risks and are managed together. Portfolios are further grouped in year cohorts of issuance and divided based on expected profitability at inception into two categories: onerous contracts and not-onerous contracts. Insurance contracts are recognised at the earlier of the beginning of the coverage period or when it becomes onerous. Insurance contracts are derecognised when the contract is expired, is discharged or cancelled. Modifications to contracts that are not considered changes in estimates will result in that the contract is derecognised, and a new contract is recognised.
All our insurance contracts issued, and reinsurance contracts held are eligible to be measured by applying the premium allocation approach, which has been fully adopted. Under the premium allocation approach, non-life insurance contract provisions include liabilities for remaining coverage and liabilities for incurred claims. The liability for remaining coverage reflects premiums received less amounts recognised in revenue for insurance contracts provided. As the premiums are received within one year of the coverage period no discounting is applied to reflect financial risk or the time value of money. The liability for incurred claims is determined on a discounted probability-weighted expected value basis and includes an explicit risk adjustment for non-financial risk. The liability includes the Group\u2019s obligation to pay other incurred insurance expenses. The liability for incurred claims is the obligation to pay valid claims for insured events that have already been occurred (IBNR and IBNER), including events that have occurred but for which claims have not been reported (IBNYR). The liability for incurred claims is estimated as the fulfilment cash flows measured as an explicit, unbiased, and probability-weighted estimate (i.e., expected value) of the present value of the future cash outflows minus the present value of the future cash inflows that will arise as the entity fulfils insurance contracts, including a risk adjustment for non-financial risk. The cash outflows include claim handling costs, policy administration and an allocation of directly attributable fixed and variable overheads to fulfilling insurance contracts.
Revenue is recognised on a straight-line basis over the duration of the contract (unless the expected release of risk differs materially from a straight-line basis). Further details are provided in Note\u00a08 Revenues and cost of revenues. Expenses for damage services are expensed to the income statement when incurred and the best estimate of the provision is updated at each reporting period, with any adjustment recognised along with the expenses incurred in \u201cCost of Services Revenues\u201d caption in the income statement. Portfolios of contracts in an asset position are reported under \u201cOther receivables, prepayments and contract assets\u201d caption in the consolidated balance sheet (refer to Note\u00a024). This includes expenses attributable to a subsequent period plus amounts still to be received and are measured at cost.
Under the premium allocation approach, it is assumed that no contracts in the portfolio are onerous at initial recognition, unless facts and circumstances that are monitored by performance indicators by Group\u2019s management indicate otherwise. Such onerous contracts are separately grouped from other contracts and the Group recognises a loss in profit or loss for the loss component. If during the coverage period, facts and circumstances indicate that a group of insurance contracts is onerous, the Group recognises a loss in the income statement for the net outflow, resulting in the carrying amount of the liability for the Group being equal to the fulfilment cash flows.
The Group measures its reinsurance assets for a group of reinsurance contracts that it holds on the same basis as insurance contracts that it issues adapted to reflect the features of reinsurance contracts held that differ from insurance contracts issued. Where the Group recognises a loss on initial recognition of an onerous group of insurance contracts, the Group establishes a loss-recovery component of the asset for remaining coverage for a group of reinsurance contracts held depicting the recovery of losses.
Annually the Group assesses whether its amounts recoverable under a reinsurance contract are subject to impairment. Reinsurance assets are impaired if there is objective evidence, because of an event that occurred after initial recognition of the reinsurance asset, that not all amounts due under the terms of the contract may be received. The carrying value is reduced to this calculated recoverable value, and the impairment loss recognised in the income statement.
The own damage reserve is based on estimations with respect to incurred but not reported claims. Techniques applied are statistical modelling based on empirical data and assumptions on future claim development, policyholder behaviour and inflation. The assumptions may differ from the actual data as a result of changes in economic and market conditions.
As a result of its normal business activities, the Group is exposed to motor insurance risks. Motor insurance risk is the risk of financial losses due to costs related to damages and compensation paid or payable. This risk consists of:
\u00a0
These two types of risk are managed by:
Ayvens subsidiaries may offer a warranty/service for damage to a vehicle as part of the lease contract if local regulation allows them to do so. This warranty/service is included in the monthly lease instalment which includes a contribution for bearing the risk (to pay the damage to the vehicles, short-tail risks). In addition to these short-tail risks, damage risks also consist of long-tail risks. These long-tail risks are managed by the Group\u2019s own insurance company in Dublin, Euro Insurances DAC trading as Ayvens Insurance, an insurance company operating under the freedom of services model in the EEA countries, through a fronting model (reinsurance) in some non-EEA countries and in the UK through a Third Country Branch.
Additionally, throughout the Group, there are a number of entities which hold mediation licences, to sell insurance products, as well as entities which also perform claim handling activities, in relation to insurance and risk retention claims.
Under the motor insurance governance policy, Ayvens has a robust and effective monitoring framework. This monitoring framework enables the entities to manage and monitor the insurance risk portfolio throughout their lifecycle, in line with agreed loss ratio targets, strategy, policies and
procedures at portfolio levels. Group entities measure and monitor their motor insurance risk on a quarterly basis and report their risk exposures to central management.
\u00a0
The insurance provision breaks down as follows:
(in EUR million) | As at 31\u00a0December 2024 | As at 31\u00a0December 2023 | ||||
|---|---|---|---|---|---|---|
Gross | Reinsurance | Net | Gross | Reinsurance | Net | |
Insurance liabilities | (706.7) | 51.1 | (655.7) | (606.6) | 52.3 | (554.3) |
Insurance asset | \u2212 | \u2212 | \u2212 | 0.8 | (0.5) | 0.3 |
Net Insurance provisions | (706.7) | 51.1 | (655.7) | (605.9) | 51.9 | (554.0) |
\u00a0
The following table provides a reconciliation of the net insurance liability for all insurance products issued by the Group:
\u00a0
(in EUR million) | Liabilities for remaining coverage | Liabilities for incurred claims | |||
|---|---|---|---|---|---|
Excluding loss component | Loss | Estimates of the present value of\u00a0future cash flows | Risk | Total | |
Insurance contract liabilities as at 1\u00a0January 2024 | 39.7 | (5.7) | (625.1) | (15.6) | (606.6) |
Insurance contract assets as at 1\u00a0January 2024 | 2.8 | \u2212 | (2.0) | (0.0) | 0.8 |
Net insurance contract (net assets/(liabilities) as\u00a0at\u00a01\u00a0January 2024 | 42.5 | (5.7) | (627.1) | (15.6) | (605.9) |
Insurance revenue | 541.9 | \u2212 | \u2212 | \u2212 | 541.9 |
Insurance expenses | (2.4) | 1.2 | (396.9) | 1.0 | (397.0) |
Incurred claims and other expenses | \u2212 | \u2212 | (530.3) | (6.7) | (537.0) |
Losses on onerous contracts and reversals of those loses | \u2212 | 1.2 | \u2212 | \u2212 | 1.2 |
Insurance acquisition cash flows amortisation | (2.4) | \u2212 | \u2212 | \u2212 | (2.4) |
Changes to liabilities for incurred claims | \u2212 | \u2212 | 133.4 | 7.7 | 141.1 |
Insurance result | 539.6 | 1.2 | (396.9) | 1.0 | 144.9 |
Insurance finance expenses | \u00a0 | (0.2) | (29.6) | (1.0) | (30.8) |
Effect of movements in exchange rates | (4.7) | 0.3 | (1.0) | 0.1 | (5.3) |
Total changes in the statement of comprehensive income | 534.8 | 1.3 | (427.4) | 0.2 | 108.9 |
Premiums received/paid | (529.5) | \u2212 | \u2212 | \u2212 | (529.5) |
Claims and other expenses paid | \u2212 | \u2212 | 311.5 | \u2212 | 311.5 |
Total cash flows | (529.5) | \u2212 | 311.5 | \u00a0 | (218.1) |
Other movements | (28.1) | (7.7) | 43.2 | 1.0 | 8.4 |
Net insurance contract (net assets/(liabilities) as\u00a0at\u00a031\u00a0December 2024) | 19.7 | (12.1) | (699.9) | (14.5) | (706.7) |
Insurance contract liabilities as at 31\u00a0December 2024 | 19.7 | (12.1) | (699.9) | (14.5) | (706.7) |
Insurance contract assets as at 31\u00a0December 2024 | \u2212 | \u2212 | \u2212 | \u2212 | \u2212 |
Net insurance contract (net assets/(liabilities) as\u00a0at\u00a031\u00a0December 2024) | 19.7 | (12.1) | (699.9) | (14.5) | (706.7) |
(in EUR million) | Liabilities for remaining coverage | Liabilities for incurred claims | |||
|---|---|---|---|---|---|
Excluding loss component | Loss | Estimates of the present value of\u00a0future cash flows | Risk | Total | |
Insurance contract liabilities as at 1\u00a0January 2023 | 21.2 | (0.2) | (181.0) | (4.0) | (164.0) |
Insurance contract assets as at 1\u00a0January 2023 | 2.3 | \u2212 | (1.6) | (0.0) | 0.7 |
Net insurance contract (net assets/(liabilities) as\u00a0at\u00a01\u00a0January 2023 | 23.6 | (0.2) | (182.6) | (4.0) | (163.2) |
Insurance contract liabilities | (1.7) | (3.2) | (385.9) | (13.0) | (403.7) |
Insurance contract assets | \u2212 | \u2212 | \u2212 | \u2212 | \u2212 |
Net insurance liabilities on acquisition | (1.7) | (3.2) | (385.9) | (13.0) | (403.7) |
Insurance revenue | 433.4 | \u2212 | \u2212 | \u2212 | 433.4 |
Insurance expenses | (15.9) | (5.5) | (307.2) | (7.1) | (335.6) |
Incurred claims and other expenses | \u2212 | \u2212 | (425.1) | (8.4) | (433.5) |
Losses on onerous contracts and reversals of those loses | \u2212 | (5.5) | \u2212 | \u2212 | (5.5) |
Insurance acquisition cash flows amortisation | (15.9) | \u2212 | \u2212 | \u2212 | (15.9) |
Changes to liabilities for incurred claims | \u2212 | \u2212 | 118.0 | 1.2 | 119.2 |
Insurance result | 417.5 | (5.5) | (307.2) | (7.1) | 97.8 |
Insurance finance expenses | \u2212 | (0.0) | (8.0) | \u2212 | (8.0) |
Effect of movements in exchange rates | 12.0 | (0.1) | 4.1 | (0.0) | 16.0 |
Total changes in the statement of comprehensive income | 429.5 | (5.6) | (311.1) | (7.1) | 105.8 |
Premiums received/paid | (408.4) | \u2212 | \u2212 | \u2212 | (408.4) |
Claims and other expenses paid | \u2212 | \u2212 | 261.4 | \u2212 | 261.4 |
Insurance acquisition costs | 2.1 | \u2212 | \u2212 | \u2212 | 2.1 |
Total cash flows | (406.3) | \u2212 | 261.4 | \u2212 | (144.9) |
Other movements | \u2212 | \u2212 | 0.2 | \u2212 | 0.2 |
Net insurance contract (net assets/(liabilities) as\u00a0at\u00a031\u00a0December 2023) | 45.1 | (9.0) | (617.9) | (24.1) | (605.9) |
Insurance contract liabilities as at 31\u00a0December 2023 | 42.3 | (9.0) | (615.9) | (24.0) | (606.6) |
Insurance contract assets as at 31\u00a0December 2023 | 2.8 | \u2212 | (2.0) | (0.0) | 0.8 |
Net insurance contract (net assets/(liabilities) as\u00a0at\u00a031\u00a0December 2023) | 45.1 | (9.0) | (617.9) | (24.1) | (605.9) |
The following table provides a reconciliation of the reinsurance liability for reinsurance contracts issued by the Group:
\u00a0
(in EUR million) | Liabilities for remaining coverage | Liabilities for incurred claims | |||
|---|---|---|---|---|---|
\u00a0 | Remaining coverage | Estimates of the present value of\u00a0future cash flows | Risk | Total | |
Reinsurance contract liabilities as at 1\u00a0January 2024 | \u00a0 | (0.5) | \u2212 | \u2212 | (0.5) |
Reinsurance contract assets as at 1\u00a0January 2024 | \u00a0 | 16.5 | 33.2 | 2.6 | 52.3 |
Net reinsurance contract (net assets/(liabilities) as\u00a0at\u00a01\u00a0January 2024 | \u00a0 | 16.1 | 33.2 | 2.6 | 51.9 |
Reinsurance expenses | \u00a0 | (10.9) | \u2212 | \u2212 | (10.9) |
Claims recovered | \u00a0 | \u2212 | 12.6 | \u2212 | 12.6 |
Effect of changes in the risk of reinsurers non\u2011performance | \u00a0 | \u2212 | \u2212 | \u2212 | \u2212 |
Changes that relate to past service\u00a0\u2013 adjustments to\u00a0insurred claims | \u00a0 | \u2212 | 0.1 | (0.0) | 0.1 |
Net income/(Expenses) from Reinsurance contracts held | \u00a0 | (10.9) | 12.7 | (0.0) | 1.8 |
Finance income from reinsurance contracts held | \u00a0 | \u2212 | 0.1 | \u2212 | 0.1 |
Total changes in the statement of comprehensive income | \u00a0 | (10.9) | 12.8 | (0.0) | 1.9 |
Premiums paid | \u00a0 | 0.1 | \u2212 | \u2212 | 0.1 |
Recoveries from reinsurance | \u00a0 | \u2212 | \u2212 | \u2212 | \u2212 |
Total cash flows | \u00a0 | 0.1 | \u2212 | \u2212 | 0.1 |
Other movements | \u00a0 | (2.0) | 0.0 | (0.9) | (2.8) |
Net insurance contract (net assets/(liabilities) as\u00a0at\u00a031\u00a0December 2024) | \u00a0 | 3.4 | 46.0 | 1.7 | 51.1 |
Reinsurance contract liabilities as at 31\u00a0December 2024 | \u00a0 | \u2212 | \u00a0 | \u00a0 | \u2212 |
Reinsurance contract assets as at 31\u00a0December 2024 | \u00a0 | 3.4 | 46.0 | 1.7 | 51.1 |
Net reinsurance contract (net assets/(liabilities) as\u00a0at\u00a031\u00a0December 2024) | \u00a0 | 3.4 | 46.0 | 1.7 | 51.1 |
(in EUR million) | Liabilities for remaining coverage | Liabilities for incurred claims | |||
|---|---|---|---|---|---|
\u00a0 | Remaining coverage | Estimates of the present value of\u00a0future cash flows | Risk | Total | |
Reinsurance contract liabilities as at 1\u00a0January 2023 | \u00a0 | (0.5) | \u2212 | \u2212 | (0.5) |
Reinsurance contract assets as at 1\u00a0January 2023 | \u00a0 | 0.4 | 9.7 | 0.2 | 10.3 |
Net reinsurance contract (net assets/(liabilities) as\u00a0at\u00a01\u00a0January 2023 | \u00a0 | (0.1) | 9.7 | 0.2 | 9.8 |
Insurance contract liabilities | \u00a0 | \u2212 | \u2212 | \u2212 | \u2212 |
Insurance contract assets | \u00a0 | 1.4 | 32.2 | 1.2 | 34.8 |
Net insurance liabilities on acquisition | \u00a0 | 1.4 | 32.2 | 1.2 | 34.8 |
Reinsurance expenses | \u00a0 | (2.6) | \u2212 | \u2212 | (2.6) |
Claims recovered | \u00a0 | 14.9 | 1.4 | 1.2 | 17.6 |
Effect of changes in the risk of reinsurers non\u2011performance | \u00a0 | \u2212 | 0.0 | \u2212 | 0.0 |
Changes that relate to past service\u00a0\u2013 adjustments to\u00a0insurred claims | \u00a0 | \u2212 | (9.0) | 0.0 | (9.0) |
Net income/(Expenses) from Reinsurance contracts held | \u00a0 | 12.4 | (7.6) | 1.2 | 5.9 |
Finance income from reinsurance contracts held | \u00a0 | \u2212 | 0.4 | \u2212 | 0.4 |
Total changes in the statement of comprehensive income | \u00a0 | 12.4 | (7.2) | 1.2 | 6.3 |
Premiums paid | \u00a0 | 1.0 | \u2212 | \u2212 | 1.0 |
Recoveries from reinsurance | \u00a0 | \u2212 | (1.4) | \u2212 | (1.4) |
Total cash flows | \u00a0 | 1.0 | (1.4) | \u2212 | (0.5) |
Other movements | \u00a0 | 1.4 | (0.0) | 0.0 | 1.4 |
Net insurance contract (net assets/(liabilities) as\u00a0at\u00a031\u00a0December 2023) | \u00a0 | 16.1 | 33.2 | 2.6 | 51.9 |
Reinsurance contract liabilities as at 31\u00a0December 2023 | \u00a0 | (0.5) | \u2212 | \u2212 | (0.5) |
Reinsurance contract assets as at 31\u00a0December 2023 | \u00a0 | 16.5 | 33.2 | 2.6 | 52.3 |
Net reinsurance contract (net assets/(liabilities) as\u00a0at\u00a031\u00a0December 2023) | \u00a0 | 16.1 | 33.2 | 2.6 | 51.9 |
Underwriting years | <\u00a02019 | 2020 | 2021 | 2022 | 2023 | 2024 | Total |
|---|---|---|---|---|---|---|---|
At end of accident year | 1,087.4 | 95.0 | 117.7 | 138.9 | 252.3 | 338.5 | \u00a0 |
| 1,080.8 | 90.0 | 113.7 | 202.5 | 408.6 | \u00a0 | \u00a0 |
| 1,066.1 | 98.7 | 207.3 | 224.5 | \u00a0 | \u00a0 | \u00a0 |
| 1,042.3 | 141.2 | 233.8 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| 1,865.8 | 152.0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| 1,892.6 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Estimate of cumulative claims | 1,892.6 | 152.0 | 233.8 | 224.5 | 408.6 | 338.5 | \u00a0 |
Cumulative payments to date | (1,754.0) | (114.1) | (121.8) | (152.1) | (216.5) | (142.3) | \u00a0 |
Gross undiscounted outstanding claim liabilities | 138.6 | 37.9 | 112.0 | 72.4 | 192.1 | 196.2 | 749.2 |
Effects of discounting | (5.5) | (2.3) | (6.0) | (4.1) | (7.9) | (9.6) | (35.2) |
Reinsurance contracts | (18.0) | (9.4) | (3.1) | (3.1) | (13.7) | (3.8) | (51.1) |
Gross outstanding claim liabilities net of\u00a0Reinsurance | 115.1 | 26.2 | 102.9 | 65.2 | 170.5 | 182.8 | 662.9 |
\u00a0
The expected maturity analysis of the gross outstanding liabilities is as follows:
\u00a0 | Up to 1 yr | 1-2 yrs | 2-5 yrs | >5 yrs | Total |
|---|---|---|---|---|---|
Insurance liabilities for incurred claims | 429.1 | 114.0 | 99.7 | 71.2 | 714.0 |
\u00a0
Underwriting years | <\u00a02019 | 2020 | 2021 | 2022 | 2023 | 2024 | Total |
|---|---|---|---|---|---|---|---|
At end of accident year | 32.8 | 6.6 | 6.8 | 5.7 | 21.1 | 4.7 | \u00a0 |
| 38.3 | 6.2 | 5.8 | 5.7 | 16.8 | \u00a0 | \u00a0 |
| 36.5 | 6.1 | 7.7 | 4.2 | \u00a0 | \u00a0 | \u00a0 |
| 31.9 | 8.1 | 7.6 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| 47.1 | 14.1 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| 51.6 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Estimate of cumulative claims | 51.6 | 14.1 | 7.6 | 4.2 | 16.8 | 4.7 | \u00a0 |
Cumulative payments to date | (32.3) | (3.2) | (3.9) | (0.5) | - | - | \u00a0 |
Gross undiscounted Reinsurance receivable | 19.3 | 10.9 | 3.7 | 3.7 | 16.8 | 4.7 | 59.1 |
Effects of discounting | (1.9) | (1.9) | (0.7) | (0.7) | (3.6) | (1.0) | (9.8) |
Effect of risk adjustment for non financial risk | 0.6 | 0.4 | 0.1 | 0.1 | 0.5 | 0.1 | 1.8 |
Gross outstanding Reinsurance receivable | 18.0 | 9.4 | 3.1 | 3.1 | 13.7 | 3.8 | 51.1 |
\u00a0
The expected maturity analysis of the gross reinsurance receivable is as follows:
\u00a0 | Up to 1 yr | 1-2 yrs | 2-5 yrs | >5 yrs | Total |
|---|---|---|---|---|---|
Reinsurance receivable | 30.6 | 8.2 | 7.2 | 5.1 | 51.1 |
The insurance contracts issued are one of the services offered to the customers of the Group in addition to the lease of the vehicles and other related leasing services. Insurance contracts are contracts under which the Group accepts a significant risk \u2013 other than a financial risk \u2013 from a policyholder by agreeing to compensate the beneficiary on the occurrence of an uncertain future event by which he or she will be adversely affected. Contracts that have been classified as insurance at inception are not reclassified subsequently.
For measurement purposes, the insurance contracts are grouped into portfolios of insurance contracts that have similar risks and are managed together. Portfolios are further grouped in year cohorts of issuance and divided based on expected profitability at inception into two categories: onerous contracts and not-onerous contracts. Insurance contracts are recognised at the earlier of the beginning of the coverage period or when it becomes onerous. Insurance contracts are derecognised when the contract is expired, is discharged or cancelled. Modifications to contracts that are not considered changes in estimates will result in that the contract is derecognised, and a new contract is recognised.
All our insurance contracts issued, and reinsurance contracts held are eligible to be measured by applying the premium allocation approach, which has been fully adopted. Under the premium allocation approach, non-life insurance contract provisions include liabilities for remaining coverage and liabilities for incurred claims. The liability for remaining coverage reflects premiums received less amounts recognised in revenue for insurance contracts provided. As the premiums are received within one year of the coverage period no discounting is applied to reflect financial risk or the time value of money. The liability for incurred claims is determined on a discounted probability-weighted expected value basis and includes an explicit risk adjustment for non-financial risk. The liability includes the Group\u2019s obligation to pay other incurred insurance expenses. The liability for incurred claims is the obligation to pay valid claims for insured events that have already been occurred (IBNR and IBNER), including events that have occurred but for which claims have not been reported (IBNYR). The liability for incurred claims is estimated as the fulfilment cash flows measured as an explicit, unbiased, and probability-weighted estimate (i.e., expected value) of the present value of the future cash outflows minus the present value of the future cash inflows that will arise as the entity fulfils insurance contracts, including a risk adjustment for non-financial risk. The cash outflows include claim handling costs, policy administration and an allocation of directly attributable fixed and variable overheads to fulfilling insurance contracts.
Revenue is recognised on a straight-line basis over the duration of the contract (unless the expected release of risk differs materially from a straight-line basis). Further details are provided in Note\u00a08 Revenues and cost of revenues. Expenses for damage services are expensed to the income statement when incurred and the best estimate of the provision is updated at each reporting period, with any adjustment recognised along with the expenses incurred in \u201cCost of Services Revenues\u201d caption in the income statement. Portfolios of contracts in an asset position are reported under \u201cOther receivables, prepayments and contract assets\u201d caption in the consolidated balance sheet (refer to Note\u00a024). This includes expenses attributable to a subsequent period plus amounts still to be received and are measured at cost.
Under the premium allocation approach, it is assumed that no contracts in the portfolio are onerous at initial recognition, unless facts and circumstances that are monitored by performance indicators by Group\u2019s management indicate otherwise. Such onerous contracts are separately grouped from other contracts and the Group recognises a loss in profit or loss for the loss component. If during the coverage period, facts and circumstances indicate that a group of insurance contracts is onerous, the Group recognises a loss in the income statement for the net outflow, resulting in the carrying amount of the liability for the Group being equal to the fulfilment cash flows.
The Group measures its reinsurance assets for a group of reinsurance contracts that it holds on the same basis as insurance contracts that it issues adapted to reflect the features of reinsurance contracts held that differ from insurance contracts issued. Where the Group recognises a loss on initial recognition of an onerous group of insurance contracts, the Group establishes a loss-recovery component of the asset for remaining coverage for a group of reinsurance contracts held depicting the recovery of losses.
Annually the Group assesses whether its amounts recoverable under a reinsurance contract are subject to impairment. Reinsurance assets are impaired if there is objective evidence, because of an event that occurred after initial recognition of the reinsurance asset, that not all amounts due under the terms of the contract may be received. The carrying value is reduced to this calculated recoverable value, and the impairment loss recognised in the income statement.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInsuranceContracts", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_5360fcf7-cf01-445c-9734-cedacc36b000": { "value": "The Group measures its reinsurance assets for a group of reinsurance contracts that it holds on the same basis as insurance contracts that it issues adapted to reflect the features of reinsurance contracts held that differ from insurance contracts issued. Where the Group recognises a loss on initial recognition of an onerous group of insurance contracts, the Group establishes a loss-recovery component of the asset for remaining coverage for a group of reinsurance contracts held depicting the recovery of losses.
Annually the Group assesses whether its amounts recoverable under a reinsurance contract are subject to impairment. Reinsurance assets are impaired if there is objective evidence, because of an event that occurred after initial recognition of the reinsurance asset, that not all amounts due under the terms of the contract may be received. The carrying value is reduced to this calculated recoverable value, and the impairment loss recognised in the income statement.
The following table provides a reconciliation of the reinsurance liability for reinsurance contracts issued by the Group:
\u00a0
(in EUR million) | Liabilities for remaining coverage | Liabilities for incurred claims | |||
|---|---|---|---|---|---|
\u00a0 | Remaining coverage | Estimates of the present value of\u00a0future cash flows | Risk | Total | |
Reinsurance contract liabilities as at 1\u00a0January 2024 | \u00a0 | (0.5) | \u2212 | \u2212 | (0.5) |
Reinsurance contract assets as at 1\u00a0January 2024 | \u00a0 | 16.5 | 33.2 | 2.6 | 52.3 |
Net reinsurance contract (net assets/(liabilities) as\u00a0at\u00a01\u00a0January 2024 | \u00a0 | 16.1 | 33.2 | 2.6 | 51.9 |
Reinsurance expenses | \u00a0 | (10.9) | \u2212 | \u2212 | (10.9) |
Claims recovered | \u00a0 | \u2212 | 12.6 | \u2212 | 12.6 |
Effect of changes in the risk of reinsurers non\u2011performance | \u00a0 | \u2212 | \u2212 | \u2212 | \u2212 |
Changes that relate to past service\u00a0\u2013 adjustments to\u00a0insurred claims | \u00a0 | \u2212 | 0.1 | (0.0) | 0.1 |
Net income/(Expenses) from Reinsurance contracts held | \u00a0 | (10.9) | 12.7 | (0.0) | 1.8 |
Finance income from reinsurance contracts held | \u00a0 | \u2212 | 0.1 | \u2212 | 0.1 |
Total changes in the statement of comprehensive income | \u00a0 | (10.9) | 12.8 | (0.0) | 1.9 |
Premiums paid | \u00a0 | 0.1 | \u2212 | \u2212 | 0.1 |
Recoveries from reinsurance | \u00a0 | \u2212 | \u2212 | \u2212 | \u2212 |
Total cash flows | \u00a0 | 0.1 | \u2212 | \u2212 | 0.1 |
Other movements | \u00a0 | (2.0) | 0.0 | (0.9) | (2.8) |
Net insurance contract (net assets/(liabilities) as\u00a0at\u00a031\u00a0December 2024) | \u00a0 | 3.4 | 46.0 | 1.7 | 51.1 |
Reinsurance contract liabilities as at 31\u00a0December 2024 | \u00a0 | \u2212 | \u00a0 | \u00a0 | \u2212 |
Reinsurance contract assets as at 31\u00a0December 2024 | \u00a0 | 3.4 | 46.0 | 1.7 | 51.1 |
Net reinsurance contract (net assets/(liabilities) as\u00a0at\u00a031\u00a0December 2024) | \u00a0 | 3.4 | 46.0 | 1.7 | 51.1 |
(in EUR million) | Liabilities for remaining coverage | Liabilities for incurred claims | |||
|---|---|---|---|---|---|
\u00a0 | Remaining coverage | Estimates of the present value of\u00a0future cash flows | Risk | Total | |
Reinsurance contract liabilities as at 1\u00a0January 2023 | \u00a0 | (0.5) | \u2212 | \u2212 | (0.5) |
Reinsurance contract assets as at 1\u00a0January 2023 | \u00a0 | 0.4 | 9.7 | 0.2 | 10.3 |
Net reinsurance contract (net assets/(liabilities) as\u00a0at\u00a01\u00a0January 2023 | \u00a0 | (0.1) | 9.7 | 0.2 | 9.8 |
Insurance contract liabilities | \u00a0 | \u2212 | \u2212 | \u2212 | \u2212 |
Insurance contract assets | \u00a0 | 1.4 | 32.2 | 1.2 | 34.8 |
Net insurance liabilities on acquisition | \u00a0 | 1.4 | 32.2 | 1.2 | 34.8 |
Reinsurance expenses | \u00a0 | (2.6) | \u2212 | \u2212 | (2.6) |
Claims recovered | \u00a0 | 14.9 | 1.4 | 1.2 | 17.6 |
Effect of changes in the risk of reinsurers non\u2011performance | \u00a0 | \u2212 | 0.0 | \u2212 | 0.0 |
Changes that relate to past service\u00a0\u2013 adjustments to\u00a0insurred claims | \u00a0 | \u2212 | (9.0) | 0.0 | (9.0) |
Net income/(Expenses) from Reinsurance contracts held | \u00a0 | 12.4 | (7.6) | 1.2 | 5.9 |
Finance income from reinsurance contracts held | \u00a0 | \u2212 | 0.4 | \u2212 | 0.4 |
Total changes in the statement of comprehensive income | \u00a0 | 12.4 | (7.2) | 1.2 | 6.3 |
Premiums paid | \u00a0 | 1.0 | \u2212 | \u2212 | 1.0 |
Recoveries from reinsurance | \u00a0 | \u2212 | (1.4) | \u2212 | (1.4) |
Total cash flows | \u00a0 | 1.0 | (1.4) | \u2212 | (0.5) |
Other movements | \u00a0 | 1.4 | (0.0) | 0.0 | 1.4 |
Net insurance contract (net assets/(liabilities) as\u00a0at\u00a031\u00a0December 2023) | \u00a0 | 16.1 | 33.2 | 2.6 | 51.9 |
Reinsurance contract liabilities as at 31\u00a0December 2023 | \u00a0 | (0.5) | \u2212 | \u2212 | (0.5) |
Reinsurance contract assets as at 31\u00a0December 2023 | \u00a0 | 16.5 | 33.2 | 2.6 | 52.3 |
Net reinsurance contract (net assets/(liabilities) as\u00a0at\u00a031\u00a0December 2023) | \u00a0 | 16.1 | 33.2 | 2.6 | 51.9 |
Underwriting years | <\u00a02019 | 2020 | 2021 | 2022 | 2023 | 2024 | Total |
|---|---|---|---|---|---|---|---|
At end of accident year | 1,087.4 | 95.0 | 117.7 | 138.9 | 252.3 | 338.5 | \u00a0 |
| 1,080.8 | 90.0 | 113.7 | 202.5 | 408.6 | \u00a0 | \u00a0 |
| 1,066.1 | 98.7 | 207.3 | 224.5 | \u00a0 | \u00a0 | \u00a0 |
| 1,042.3 | 141.2 | 233.8 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| 1,865.8 | 152.0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| 1,892.6 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Estimate of cumulative claims | 1,892.6 | 152.0 | 233.8 | 224.5 | 408.6 | 338.5 | \u00a0 |
Cumulative payments to date | (1,754.0) | (114.1) | (121.8) | (152.1) | (216.5) | (142.3) | \u00a0 |
Gross undiscounted outstanding claim liabilities | 138.6 | 37.9 | 112.0 | 72.4 | 192.1 | 196.2 | 749.2 |
Effects of discounting | (5.5) | (2.3) | (6.0) | (4.1) | (7.9) | (9.6) | (35.2) |
Reinsurance contracts | (18.0) | (9.4) | (3.1) | (3.1) | (13.7) | (3.8) | (51.1) |
Gross outstanding claim liabilities net of\u00a0Reinsurance | 115.1 | 26.2 | 102.9 | 65.2 | 170.5 | 182.8 | 662.9 |
\u00a0
The expected maturity analysis of the gross outstanding liabilities is as follows:
\u00a0 | Up to 1 yr | 1-2 yrs | 2-5 yrs | >5 yrs | Total |
|---|---|---|---|---|---|
Insurance liabilities for incurred claims | 429.1 | 114.0 | 99.7 | 71.2 | 714.0 |
\u00a0
Underwriting years | <\u00a02019 | 2020 | 2021 | 2022 | 2023 | 2024 | Total |
|---|---|---|---|---|---|---|---|
At end of accident year | 32.8 | 6.6 | 6.8 | 5.7 | 21.1 | 4.7 | \u00a0 |
| 38.3 | 6.2 | 5.8 | 5.7 | 16.8 | \u00a0 | \u00a0 |
| 36.5 | 6.1 | 7.7 | 4.2 | \u00a0 | \u00a0 | \u00a0 |
| 31.9 | 8.1 | 7.6 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| 47.1 | 14.1 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| 51.6 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Estimate of cumulative claims | 51.6 | 14.1 | 7.6 | 4.2 | 16.8 | 4.7 | \u00a0 |
Cumulative payments to date | (32.3) | (3.2) | (3.9) | (0.5) | - | - | \u00a0 |
Gross undiscounted Reinsurance receivable | 19.3 | 10.9 | 3.7 | 3.7 | 16.8 | 4.7 | 59.1 |
Effects of discounting | (1.9) | (1.9) | (0.7) | (0.7) | (3.6) | (1.0) | (9.8) |
Effect of risk adjustment for non financial risk | 0.6 | 0.4 | 0.1 | 0.1 | 0.5 | 0.1 | 1.8 |
Gross outstanding Reinsurance receivable | 18.0 | 9.4 | 3.1 | 3.1 | 13.7 | 3.8 | 51.1 |
\u00a0
The expected maturity analysis of the gross reinsurance receivable is as follows:
\u00a0 | Up to 1 yr | 1-2 yrs | 2-5 yrs | >5 yrs | Total |
|---|---|---|---|---|---|
Reinsurance receivable | 30.6 | 8.2 | 7.2 | 5.1 | 51.1 |
The Group measures its reinsurance assets for a group of reinsurance contracts that it holds on the same basis as insurance contracts that it issues adapted to reflect the features of reinsurance contracts held that differ from insurance contracts issued. Where the Group recognises a loss on initial recognition of an onerous group of insurance contracts, the Group establishes a loss-recovery component of the asset for remaining coverage for a group of reinsurance contracts held depicting the recovery of losses.
Annually the Group assesses whether its amounts recoverable under a reinsurance contract are subject to impairment. Reinsurance assets are impaired if there is objective evidence, because of an event that occurred after initial recognition of the reinsurance asset, that not all amounts due under the terms of the contract may be received. The carrying value is reduced to this calculated recoverable value, and the impairment loss recognised in the income statement.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForReinsuranceExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_7812fe3a-a0ea-418b-8f21-b938b1096b9b": { "value": "Trade and other payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. If payment is due within one year or less (or in the normal operating cycle of the business if longer) these will be presented as current obligations, but otherwise will be presented as non-current liabilities. Trade payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.
The Group recognises a liability and an expense for variable remuneration to employees based on an assessment of the relevant performance of variable remuneration criteria (see Share-based payments accounting policy). The Group recognises an accrual where contractually obliged or where there is a past practice that has created a constructive obligation.
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Trade payables | 2,495.3 | 2,560.4 |
Deferred leasing income\u00a0(1) | 796.6 | 732.1 |
Other accruals and other deferred income\u00a0(2) | 1,144.5 | 1,132.3 |
Advance lease instalments received | 690.3 | 808.6 |
Accruals for contract settlements | 476.8 | 472.8 |
VAT and other taxes | 407.6 | 332.1 |
Other | 13.5 | 68.4 |
Trade and other payables | 6,024.5 | 6,106.7 |
|
\u00a0
The majority of the trade and other payables and deferred income, except for deferred leasing income, have a remaining maturity of less than one year.
Other accruals and other deferred amounts contain accruals for different staff expenses, including for the variable remuneration.
", "dimensions": { "concept": "ifrs-full:DisclosureOfTradeAndOtherPayablesExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_9041bd57-b1de-4da3-b73a-07e5f917b20a": { "value": "Trade and other payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. If payment is due within one year or less (or in the normal operating cycle of the business if longer) these will be presented as current obligations, but otherwise will be presented as non-current liabilities. Trade payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.
The Group recognises a liability and an expense for variable remuneration to employees based on an assessment of the relevant performance of variable remuneration criteria (see Share-based payments accounting policy). The Group recognises an accrual where contractually obliged or where there is a past practice that has created a constructive obligation.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherPayablesExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_5f2a8e4c-4b8a-4c5c-bfa7-7b229176165b": { "value": "The tax expense for the period comprises current and deferred tax. Tax is recognised in the income statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Group operate and generate taxable income.
Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.
Deferred income tax is recognised, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill; deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted at the balance sheet date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.
Deferred income tax assets are recognised only to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilised.
Deferred income tax is booked on temporary differences arising on investments in subsidiaries and associates, except for deferred income tax liability where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.
Current and deferred taxes are recognised in the income statement under Income tax. Deferred taxes related to remeasurement of retirement benefit, cash flow hedges and gains or losses on fair value of debt securities are recognised in other comprehensive income.
The Group is subject to income taxes in numerous jurisdictions. Significant judgement is required in determining the worldwide current and deferred tax. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The Group assumes in the estimates that all tax positions that are not yet final will be examined by tax authorities, that have all relevant information available. The Group recognises deferred tax assets only to the extent that it is probable that future taxable profits will be available. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences are analysed and will impact the income tax and deferred tax assets or liabilities in the year in which such determination is made.
\u00a0
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Current tax | (404.0) | (355.0) |
Deferred tax | 119.9 | (4.4) |
Income tax expense | (284.2) | (359.4) |
\u00a0
Deferred tax variation in 2024 is mainly caused by the following movements in temporary differences between accounting and tax bases of assets and liabilities:
The deferred tax charge/credit relating to components of other comprehensive income is as follows:
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Cashflow hedges | (8.4) | 25.7 |
Debt instruments at fair value through OCI | (0.6) | (1.2) |
Remeasurement of retirement benefit | 0.2 | 1.0 |
Deferred tax charged to OCI | (8.8) | 25.5 |
\u00a0
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Profit before tax | 994.3 | 1,224.9 |
Standard tax rate in France | 25.83% | 25.83% |
Tax expense at standard rate | (256.8) | (316.3) |
Tax calculated at domestic tax rates applicable to profits in the respective countries | 16.7 | 28.6 |
Tax effects of: | \u00a0 | \u00a0 |
Associates\u2019 results reported net of tax | 5.8 | 1.7 |
Income not subject to tax | 2.0 | (14.7) |
Expenses not deductible for tax purposes | (47.0) | (12.8) |
Utilisation of previously unrecognised tax losses | (4.6) | 2.6 |
Tax losses for which no deferred income tax asset was recognised | \u00a0 | (6.5) |
Re-measurement of deferred tax | 1.7 | (25.1) |
Adjustment in respect of prior years | (5.1) | 9.5 |
Other\u00a0(1) | 3.2 | (26.4) |
Total | (284.2) | (359.4) |
Effective rate of income tax | 28.58% | 29.34% |
|
\u00a0
Tax calculated at domestic tax rates applicable to profits in the respective countries (EUR\u00a016.7\u00a0million): The weighted average of the local tax rates applicable to the Group for 2024 is lower than the domicile country nominal tax rate of 25.83% predominantly as a result of the fact that the Group realises on average relatively more profits in jurisdictions with a tax rate lower than 25.83%.
Expenses not deductible for tax purposes are mainly related to non-deductible expenses with respect to hyperinflation (Turkey) and the deduction of interest on the AT1 instrument (Netherlands). The variance between 2023 and 2024 is mainly related to non-deductible expenses with respect to hyperinflation.
The recognition of deferred tax asset on tax credits in Luxembourg is reported under \u201cother\u201d.
\u00a0
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Net deferred tax liabilities at 1\u00a0January | (930.3) | (547.0) |
Income statement charge | 119.9 | (4.4) |
Tax charged/(credited) directly to equity | (10.7) | 23.1 |
Exchange differences | 23.9 | 54.9 |
Scope changes\u00a0(1) | (15.0) | (461.4) |
Other | 2.5 | 4.5 |
Net deferred tax liabilities at 31\u00a0December | (809.7) | (930.3) |
|
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Accelerated tax depreciation | (1,394.7) | (1,300.5) |
Provisions | 108.8 | 110.8 |
Impairment losses | 54.9 | 30.2 |
Tax losses | 258.5 | 219.2 |
Fair value gains | 3.2 | 9.1 |
Retirement benefit obligation | 5.0 | 6.1 |
Other timing differences | 154.6 | (5.2) |
Net deferred tax asset/(liability) | (809.7) | (930.3) |
\u00a0
The Group recognises deferred tax assets for the tax value of losses and tax credits carried forward to the extent that the realisation of the related tax benefit through future taxable profits is probable. The Group performs an annual review of its capacity to use tax loss carry\u2011forwards, taking into account the tax system applicable to each tax entity concerned and a realistic forecast of its tax results. For this purpose, the tax results are determined based on the projected performance of the businesses. The tax results also take into consideration the accounting and tax adjustments (including the reversal of the deferred tax assets and liabilities based on temporary differences) applicable to the entities and jurisdictions concerned. These adjustments are determined on the basis of historical tax results and on the entity\u2019s tax expertise. An extrapolation of the tax result is performed from 2025 and over a timeframe considered reasonable and depending on the nature of the activities carried out within each tax entity.
The Group has not recognised deferred tax assets in respect to tax losses of EUR\u00a023.5\u00a0million as the group considers it not probable that future taxable profits will be available to offset these tax losses (also taking into account expiry dates when applicable). The majority of the unrecognised tax losses of EUR\u00a023.5\u00a0million do not have an expiry date (EUR\u00a07.5\u00a0million of the unrecognised tax losses have an expiry date).
\u00a0
The tax losses carried forward for the year are attributable to:
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Netherlands | 101.6 | 74.1 |
France | 87.7 | 46.7 |
Italy | 2.4 | 27.6 |
India | 24.5 | 26.3 |
Norway | 7.8 | 12.9 |
Greece | 11.6 | 8.8 |
Chile | 5.9 | 8.6 |
Belgium | 6.2 | 7.0 |
UK | 5.9 | 6.4 |
Others | 4.9 | 0.8 |
Total | 258.5 | 219.2 |
\u00a0
The increase in carry forward tax losses (EUR\u00a039.2\u00a0million) is mainly attributable to The Netherlands (reclass of the deferred tax asset, related to timing differences on impairment intangible assets, to carry forward tax losses and offsetting of tax losses), France (addition of carry forward tax losses) and Italy (offsetting of carry forward tax losses).
Expected recovery periods of the losses carried forward can be illustrated as follows:
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Expiry within 1\u00a0year | 8.5 | 9.2 |
Expiry within 1-5\u00a0years | 11.7 | 10.3 |
Without expiry | 238.3 | 199.6 |
Total | 258.5 | 219.2 |
The tax expense for the period comprises current and deferred tax. Tax is recognised in the income statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Group operate and generate taxable income.
Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.
Deferred income tax is recognised, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill; deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted at the balance sheet date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.
Deferred income tax assets are recognised only to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilised.
Deferred income tax is booked on temporary differences arising on investments in subsidiaries and associates, except for deferred income tax liability where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.
Current and deferred taxes are recognised in the income statement under Income tax. Deferred taxes related to remeasurement of retirement benefit, cash flow hedges and gains or losses on fair value of debt securities are recognised in other comprehensive income.
The Group is subject to income taxes in numerous jurisdictions. Significant judgement is required in determining the worldwide current and deferred tax. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The Group assumes in the estimates that all tax positions that are not yet final will be examined by tax authorities, that have all relevant information available. The Group recognises deferred tax assets only to the extent that it is probable that future taxable profits will be available. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences are analysed and will impact the income tax and deferred tax assets or liabilities in the year in which such determination is made.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIncomeTaxExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_f9c09872-ffa2-49b8-84ff-d550f8e1e041": { "value": "Deferred income tax is recognised, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill; deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted at the balance sheet date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.
Deferred income tax assets are recognised only to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilised.
Deferred income tax is booked on temporary differences arising on investments in subsidiaries and associates, except for deferred income tax liability where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.
Current and deferred taxes are recognised in the income statement under Income tax. Deferred taxes related to remeasurement of retirement benefit, cash flow hedges and gains or losses on fair value of debt securities are recognised in other comprehensive income.
\u00a0
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Current tax | (404.0) | (355.0) |
Deferred tax | 119.9 | (4.4) |
Income tax expense | (284.2) | (359.4) |
\u00a0
Deferred tax variation in 2024 is mainly caused by the following movements in temporary differences between accounting and tax bases of assets and liabilities:
The deferred tax charge/credit relating to components of other comprehensive income is as follows:
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Cashflow hedges | (8.4) | 25.7 |
Debt instruments at fair value through OCI | (0.6) | (1.2) |
Remeasurement of retirement benefit | 0.2 | 1.0 |
Deferred tax charged to OCI | (8.8) | 25.5 |
\u00a0
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Profit before tax | 994.3 | 1,224.9 |
Standard tax rate in France | 25.83% | 25.83% |
Tax expense at standard rate | (256.8) | (316.3) |
Tax calculated at domestic tax rates applicable to profits in the respective countries | 16.7 | 28.6 |
Tax effects of: | \u00a0 | \u00a0 |
Associates\u2019 results reported net of tax | 5.8 | 1.7 |
Income not subject to tax | 2.0 | (14.7) |
Expenses not deductible for tax purposes | (47.0) | (12.8) |
Utilisation of previously unrecognised tax losses | (4.6) | 2.6 |
Tax losses for which no deferred income tax asset was recognised | \u00a0 | (6.5) |
Re-measurement of deferred tax | 1.7 | (25.1) |
Adjustment in respect of prior years | (5.1) | 9.5 |
Other\u00a0(1) | 3.2 | (26.4) |
Total | (284.2) | (359.4) |
Effective rate of income tax | 28.58% | 29.34% |
|
\u00a0
Tax calculated at domestic tax rates applicable to profits in the respective countries (EUR\u00a016.7\u00a0million): The weighted average of the local tax rates applicable to the Group for 2024 is lower than the domicile country nominal tax rate of 25.83% predominantly as a result of the fact that the Group realises on average relatively more profits in jurisdictions with a tax rate lower than 25.83%.
Expenses not deductible for tax purposes are mainly related to non-deductible expenses with respect to hyperinflation (Turkey) and the deduction of interest on the AT1 instrument (Netherlands). The variance between 2023 and 2024 is mainly related to non-deductible expenses with respect to hyperinflation.
The recognition of deferred tax asset on tax credits in Luxembourg is reported under \u201cother\u201d.
\u00a0
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Net deferred tax liabilities at 1\u00a0January | (930.3) | (547.0) |
Income statement charge | 119.9 | (4.4) |
Tax charged/(credited) directly to equity | (10.7) | 23.1 |
Exchange differences | 23.9 | 54.9 |
Scope changes\u00a0(1) | (15.0) | (461.4) |
Other | 2.5 | 4.5 |
Net deferred tax liabilities at 31\u00a0December | (809.7) | (930.3) |
|
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Accelerated tax depreciation | (1,394.7) | (1,300.5) |
Provisions | 108.8 | 110.8 |
Impairment losses | 54.9 | 30.2 |
Tax losses | 258.5 | 219.2 |
Fair value gains | 3.2 | 9.1 |
Retirement benefit obligation | 5.0 | 6.1 |
Other timing differences | 154.6 | (5.2) |
Net deferred tax asset/(liability) | (809.7) | (930.3) |
\u00a0
The Group recognises deferred tax assets for the tax value of losses and tax credits carried forward to the extent that the realisation of the related tax benefit through future taxable profits is probable. The Group performs an annual review of its capacity to use tax loss carry\u2011forwards, taking into account the tax system applicable to each tax entity concerned and a realistic forecast of its tax results. For this purpose, the tax results are determined based on the projected performance of the businesses. The tax results also take into consideration the accounting and tax adjustments (including the reversal of the deferred tax assets and liabilities based on temporary differences) applicable to the entities and jurisdictions concerned. These adjustments are determined on the basis of historical tax results and on the entity\u2019s tax expertise. An extrapolation of the tax result is performed from 2025 and over a timeframe considered reasonable and depending on the nature of the activities carried out within each tax entity.
The Group has not recognised deferred tax assets in respect to tax losses of EUR\u00a023.5\u00a0million as the group considers it not probable that future taxable profits will be available to offset these tax losses (also taking into account expiry dates when applicable). The majority of the unrecognised tax losses of EUR\u00a023.5\u00a0million do not have an expiry date (EUR\u00a07.5\u00a0million of the unrecognised tax losses have an expiry date).
\u00a0
The tax losses carried forward for the year are attributable to:
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Netherlands | 101.6 | 74.1 |
France | 87.7 | 46.7 |
Italy | 2.4 | 27.6 |
India | 24.5 | 26.3 |
Norway | 7.8 | 12.9 |
Greece | 11.6 | 8.8 |
Chile | 5.9 | 8.6 |
Belgium | 6.2 | 7.0 |
UK | 5.9 | 6.4 |
Others | 4.9 | 0.8 |
Total | 258.5 | 219.2 |
\u00a0
The increase in carry forward tax losses (EUR\u00a039.2\u00a0million) is mainly attributable to The Netherlands (reclass of the deferred tax asset, related to timing differences on impairment intangible assets, to carry forward tax losses and offsetting of tax losses), France (addition of carry forward tax losses) and Italy (offsetting of carry forward tax losses).
Expected recovery periods of the losses carried forward can be illustrated as follows:
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Expiry within 1\u00a0year | 8.5 | 9.2 |
Expiry within 1-5\u00a0years | 11.7 | 10.3 |
Without expiry | 238.3 | 199.6 |
Total | 258.5 | 219.2 |
Deferred income tax is recognised, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill; deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted at the balance sheet date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.
Deferred income tax assets are recognised only to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilised.
Deferred income tax is booked on temporary differences arising on investments in subsidiaries and associates, except for deferred income tax liability where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.
Current and deferred taxes are recognised in the income statement under Income tax. Deferred taxes related to remeasurement of retirement benefit, cash flow hedges and gains or losses on fair value of debt securities are recognised in other comprehensive income.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDeferredIncomeTaxExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_80ec60fd-67cc-4912-9700-b1456a961600": { "value": "Revenues represent the fair value of the consideration received or receivable for the sale of goods and services in the Group\u2019s ordinary course of business.
Contracts relating to vehicle leasing and service products can take the form of operating leases, finance leases and service agreements. To determine whether a contract includes an agreement for a period of time, the Group has assessed whether, throughout the period of use, the customer has both of the following:
If a contract relating to an asset fails to give the customer both of the above rights, the Group accounts for the agreement as a revenue contract. In situations where management services unrelated to an asset contract are provided, the Group accounts for the contract as a service contract.
In most situations, lease and service contracts are entered into at the same time or as a single contract with our customers. Where the customer is charged a monthly fee that both relates to the rental price of the vehicle (including depreciation and interest) and various other products and services that the customer can subscribe to, the standalone tariffed elements will be recognised as separate performance obligations if the good or service is distinct by meeting both the following criteria:
Activities or costs that transfer a good or service to the lessee are identified as non-lease components. Amounts payable for activities and costs that do not transfer a good or service are part of the total consideration and are allocated to the lease and non-lease components identified in the contract.
The lease classification, that is determined on a contract-by-contract basis, will determine if revenue recognition is on an operating lease or finance lease basis.
On operating leases, lease rental revenue (depreciation and interest) is recognised in accordance with IFRS\u00a016 on a straight-line basis over the lease term based on the total of the contractual payments divided by the number of months of the lease term.
Charges to customers may include passed on costs such as fuel, road taxes and other taxes which do not represent the inflow of economic benefits and/or are collected on behalf of third parties and are therefore not presented as revenues.
Upfront payments from customers at the beginning of the lease agreement are recognised in the balance sheet and amortised on a straight-line basis over the period of the lease agreement. Amounts paid or value provided to lessees as lease incentives are capitalised (e.g., upfront cash payments to the lessee, reimbursement or absorption of costs by the lessor or free or reduced rents given at the beginning of the lease term). Lease incentives are accounted for on a straight-line basis over the term of the related lease as a reduction in revenue.
Where a customer retains the car for a period beyond the normal return date (informal extension), the rent continues to be charged to the customer and the related contractual depreciation will continue to be recognised.
Regarding finance leases, the IFRS\u00a016\u00a0standard is applied, and the earnings are allocated between the capital amount and finance income. The capital amount is used to reduce the receivable balance and the income is recognised in the income statement in each period using the effective interest rate method to give a constant periodic rate of return on the net investment in the lease. The Group uses the net investment method to allocate gross earnings, which excludes the effect of cash flows arising from taxes and financing relating to a lease transaction. In addition:
Upfront payments and initial direct costs are taken into consideration in calculating the implicit interest rate in the lease and recognised evenly over the life of the lease.
If a contract contains a lease component and one or additional lease or non-lease components, then IFRS\u00a016 requires a lessor always to allocate the consideration in a contract following the approach in IFRS\u00a015 Revenue recognition.
The 5\u00a0steps process required by IFRS\u00a015 for non-lease components is summarised as follows:
Revenue from Fleet Management services is recognised on a straight-line basis over the term of the Fleet Management agreement.
Income related to repair, maintenance and tyres (RMT) is recognised over the term of the lease contract. The allocation of income over the term is based on the normal RMT cost profile supported by historical statistics and expected service costs. The difference between the amounts charged to customers and amounts recognised as income is accounted for as deferred leasing income. Cost profiles are reviewed periodically to ensure they remain a fair representation of historical RMT expenditures, adjusted for reasonable expectations of changes in cost profiles. Where an accurate or reliable estimate of the cost curve is not available, revenue is recognised based on an estimate of expected completion of the performance obligation using an alternative input method.
If income related to services surrounding contracts is not certain until final settlement takes place, this income is not recognised until that time and is presented within the sales result. For all other contracts, expected losses are recognised as an expense immediately when it is probable that total contract costs will exceed total contract revenues.
Flex Fleet revenues are recognised on a straight-line basis over the term of the rental agreement.
The revenue from the risk retention schemes is recognised based on the monthly lease instalment. This applies for third-party liability and own damage insurance products. Revenue recognition will cease when the contract is terminated by a customer or at the end of the contractual term.
Where interest on late payment is billed to customers, the related revenue is only recognised when settlements are made by customers.
Revenues also include the proceeds of the sale of vehicles from terminated lease contracts and lease revenues from end of contract billing such as repair costs recharged to the customer. The proceeds from the sale of vehicles are recognised when the vehicles are sold and control of the vehicles is transferred. End of contract fees may consist of fees charged to customers for mileage variation adjustments and excessive wear and tear of the vehicle. Revenues also include charges arising from deviations from the contractual terms, where the fees are recognised upon termination of the lease contract.
Income related to lease services is recognised over the term of the contract based on historical statistics and on assumptions regarding expected service costs. The assumptions may differ from the actual data as a result of changes in economic and market conditions and are periodically back tested and adjusted if considered necessary. For details in relation to the accounting of Note 3.4.20 Revenue recognition.
During the reporting period, the Group implemented a new regional structure for its operating segments, which reflects a strategic alignment with its management structure following the acquisition and integration of LeasePlan. The Group has appointed a new leadership team where the members of the Executive Committee hold supervisory responsibilities in line with the new regional structure of four regions. The new regional segmentation corresponds to the updated management structure. To ensure consistency and enhance decision-making, the new regional segmentation has been implemented across the Group\u2019s budgeting and internal reporting processes. Supporting departments, such as finance and human resources, have been restructured to align with the regional segments, creating an uniform approach to operational support.
The new regional segmentation comprises 4 regions with the following countries per region:
The performance of the operating segments is assessed based on a measure of revenue and profit before tax as presented in the consolidated financial statements. None of the Group\u2019s customers represent more than 10% of the total revenue.
\u00a0
\u00a0
(in EUR million) | Year ended 31\u00a0December 2024 | |||
|---|---|---|---|---|
Rental fleet | Total assets | Net financial debt | Revenue from external customers | |
Region 1 | 11,333.7 | 16,850.8 | 9,800.3 | 5,369.1 |
Region 2 | 16,949.1 | 24,913.7 | 14,286.2 | 8,390.7 |
Region 3 | 13,737.9 | 19,257.1 | 15,606.5 | 6,535.5 |
Region 4 | 9,529.3 | 14,094.2 | 9,316.4 | 5,055.9 |
TOTAL | 51,550.0 | 75,115.8 | 49,009.4 | 25,351.1 |
\u00a0
(in EUR million) | Year ended 31\u00a0December 2023 | |||
|---|---|---|---|---|
Rental fleet | Total assets | Net financial debt | Revenue from external customers | |
Region 1 | 10,912.9 | 15,550.7 | 9,336.1 | 4,096.8 |
Region 2 | 16,556.7 | 23,526.0 | 13,556.3 | 6,093.3 |
Region 3 | 12,825.0 | 17,431.6 | 13,622.6 | 4,637.3 |
Region 4 | 9,496.5 | 13,876.6 | 8,899.6 | 4,055.3 |
TOTAL | 49,791.2 | 70,384.8 | 45,414.5 | 18,882.7 |
\u00a0
Sales between segments are carried out at arm\u2019s length. The revenue from external parties reported to the Board of Directors is measured in a manner consistent with that in the income statement. There has been no inter-segment revenue for year ending 31\u00a0December 2024 and 2023.
\u00a0
(in EUR million) | Year ended 31\u00a0December | |
|---|---|---|
2024 | 2023 | |
Leasing revenues | 11,016.8 | 8,032.6 |
Service revenues | 5,451.0 | 4,391.2 |
Proceeds of cars sold | 8,883.3 | 6,458.8 |
Revenue from external customers | 25,351.1 | 18,882.7 |
Revenue from external customers and Rental Fleet by countries with Revenues in excess of EUR\u00a01\u00a0billion are detailed below:
(in EUR million) | Year ended 31\u00a0December 2024 | Year ended 31\u00a0December 2023 | Year ended 31\u00a0December 2024 | Year ended 31\u00a0December 2023 |
|---|---|---|---|---|
Revenue from external customers | Revenue from external customers | Rental fleet | Rental fleet | |
France | 3,805.8 | 3,003.1 | 8,794.0 | 8,139.0 |
Italy | 2,994.6 | 2,198.8 | 6,605.6 | 6,303.0 |
United Kingdom | 2,813.2 | 2,004.0 | 5,554.8 | 5,520.3 |
Netherlands | 2,406.7 | 1,925.1 | 5,474.8 | 4,084.1 |
Germany | 2,372.0 | 1,726.9 | 4,134.2 | 5,389.9 |
Spain | 1,839.5 | 1,553.2 | 3,888.4 | 3,967.0 |
Belgium | 1,627.9 | 1,157.3 | 3,612.5 | 3,340.5 |
Other countries | 7,491.4 | 5,314.3 | 13,485.7 | 13,047.4 |
TOTAL | 25,351.1 | 18,882.7 | 51,550.0 | 49,791.2 |
\u00a0
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Leasing revenue\u00a0\u2013 operating leases | 10,590.1 | 7,795.3 |
Interest income from finance lease | 124.7 | 89.4 |
Other interest income | 302.0 | 148.0 |
Leasing revenues | 11,016.8 | 8,032.6 |
Leasing costs\u00a0\u2013 depreciation | (8,085.7) | (6,171.0) |
Leasing costs\u00a0\u2013 financing: | \u00a0 | \u00a0 |
Interest charges on loans from financial institutions\u00a0(1) | (766.4) | (445.2) |
Interest charges on deposits | (381.1) | (169.0) |
Interest charges on issued bonds | (455.8) | (225.3) |
Other interest charges | (294.3) | (205.2) |
Total interest charges | (1,897.5) | (1,044.7) |
Leasing costs\u00a0\u2013 depreciation and financing | (9,983.2) | (7,215.7) |
Derivatives not in hedges | 45.5 | (152.0) |
Hedge ineffectiveness\u00a0\u2013 fair value hedges | (127.2) | (35.5) |
Hedge ineffectiveness\u00a0\u2013 cash flow hedges | 1.0 | 1.5 |
Unrealised gains/(losses) on derivative financial instruments | (80.6) | (186.0) |
Unrealised foreign exchange gains/(losses) | (3.6) | 4.5 |
Hyperinflation\u00a0\u2013 net monetary gain | 121.4 | 140.1 |
Total unrealised gains/(losses) on financial instruments and other | 37.1 | (41.4) |
Leasing margin | 1,070.7 | 775.5 |
|
\u201cLeasing costs \u2013 depreciation\u201d includes depreciation of vehicles which is calculated based on contractual residual values. Any impacts from the revision of residual values are recorded in the \u201cDepreciation adjustments\u201d in \u201cUsed car sales result and depreciation adjustments\u201d.
\u201cOther interest income\u201d comprises income received from financial instruments, income received for cash deposits with central banks and other third parties.
\u201cOther interest charges\u201d mainly comprise of interest charges incurred from asset-backed borrowings, net interest costs on derivative financial instruments, realised gains or losses on translation of financial liabilities and interest expense on lease liabilities.
Financial statements of the Turkish subsidiaries are based on a historic cost. Non-monetary items in the financial statements have been restated for the change in CPI (Consumer Price Index) from the date of their acquisition or initial recognition to the end of the reporting period.
Net monetary gain is derived as the difference resulting from the restatement of non-monetary assets, incomes and expenses at transaction date and the restatement of all components of equity from the beginning of the period.
Included within the \u201cLeasing costs\u201d, for hyperinflation in Turkey is an impairment of EUR\u00a061.5\u00a0million for year ending 31\u00a0December 2024 (2023: EUR\u00a067.2\u00a0million) relating to recoverability of the fleet assets and additional depreciation on the inflationary increase of EUR\u00a0121.3\u00a0million (2023: EUR\u00a033.7\u00a0million).
Total interest charges have increased significantly in the year ending 31\u00a0December 2024. \u201cInterest charge on loans from financial institutions\u201d has increased with the acquisition of LeasePlan in May\u00a02023, which has external funding arrangements and borrowing from central bank institutions as part of its banking operations. The new charge of \u201cInterest charges on deposits\u201d is also a result of interest paid on fixed term savings deposits, raised by Ayvens Bank in the Netherlands and in Germany. \u201cInterest charges on issued bonds\u201d has increased due to the issuance of new EMTN bonds in the year to finance the operations of the combined group, while the increase in \u201cOther interest charges\u201d are due to the additional asset-backed securitisation funding acquired on acquisition of LeasePlan. For more details of the funding changes from the acquisition of LeasePlan see Note\u00a029 Borrowing from financial institutions, Bonds and Notes issued.
The Group\u2019s activities are principally related to vehicle leasing and Fleet Management. The Group accepts and offers lease contracts to clients at both fixed and floating interest rates, for various periods and in various currencies. For a major part of the funding of the cars, the Group has entered into borrowings from external parties or issued notes to third parties. To mitigate the Group exposure towards future movements in interest rates and currency exchange rates the Group have entered into interest rate swaps and cross currency swap and forward arrangements. While as a result of these arrangements the Group mitigates interest rate risk and currency risk from an economic perspective, these derivatives do not always qualify for hedge accounting from an accounting perspective. The accounting treatment of derivative financial instruments exposes the Group to some volatility in its income statement. For more details see Note\u00a05 Financial Risk Management and Note\u00a019 Derivative financial instruments.
The \u201cHyperinflation \u2013 net monetary gain\u201d in the \u201cUnrealised gains/losses on financial instruments and other\u201d line in the income statement, includes the gain for the consumer price index inflation applied to the book value of the Turkish subsidiaries fleet of vehicles, share capital and retained earnings.
\u00a0
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Services revenue | 5,451.0 | 4,391.2 |
Cost of services revenues | (3,824.5) | (3,140.4) |
Services margin | 1,626.5 | 1,250.9 |
\u00a0
Revenues and costs are derived from the various service components included within the contractual lease instalments, such as maintenance and tyres, damage risk retention and replacement vehicles.
Services margin for the year ended 31\u00a0December 2024 includes an amount of EUR\u00a0114.1\u00a0million (2023: EUR\u00a089.8\u00a0million) related to insurance and reinsurance services. Refer to the following table for the breakdown:
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Insurance revenue | 541.9 | 433.4 |
Insurance expenses | (397.0) | (335.6) |
Insurance finance expenses | (30.8) | (8.0) |
Insurance result including insurance finance expenses | 114.1 | 89.8 |
\u00a0
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Proceeds of cars sold | 8,883.3 | 6,458.8 |
Cost of cars sold | (7,975.4) | (5,380.3) |
Used car sales result | 907.9 | 1,078.5 |
Depreciation costs adjustments | (590.9) | (195.4) |
Depreciation costs adjustments \u2013 revision of residual values | 24.3 | 553.2 |
Impact of previous depreciation adj on NBV of vehicles sold | (313.5) | (536.0) |
Purchase price allocation adjustments | (301.6) | (212.6) |
Used Car Sales result and depreciation adjustments | 317.1 | 883.1 |
\u00a0
Used vehicles prices have continued to drive high profit from the used car sales activity but as previously anticipated the used car market has been normalising with a gradual decline throughout 2024. Used car sales results remained strong despite the continued weakness of the EV used car market which was more than offset by the strong performance on ICE.
Revision of the expected residual values can result in one of three outcomes for the prospective depreciation over the remaining life of the contract:
\u00a0
Depreciation cost adjustments include all impacts from the revision of residual values process performed by the Group. For further detail see Note\u00a03.1 Basis of preparation, section Critical estimates, judgement and errors.
Depreciation costs adjustments have been negatively impacted by:
Revenues that are included within the margins analysed in 8a, 8b and 8c are shown in the following table. They are analysed into Revenues derived from the Rental activity and Proceeds of Cars sold at the end of the leasing period.
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Services revenues | 5,451.0 | 4,391.2 |
Proceeds of cars sold | 8,883.3 | 6,458.8 |
Revenues from contracts with customers excluding lease | 14,334.3 | 10,850.0 |
Leasing revenues | 11,016.8 | 8,032.6 |
Total Revenues | 25,351.1 | 18,882.7 |
\u00a0
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Services revenues | 5,451.0 | 4,391.2 |
Leasing revenue\u00a0\u2013 operating leases | 10,590.1 | 7,795.3 |
Interest revenue | 426.7 | 237.4 |
Leasing revenues | 11,016.8 | 8,032.6 |
Sub-Total\u00a0\u2013 Revenues from lease activity | 16,467.8 | 12,423.9 |
Proceeds of cars sold | 8,883.3 | 6,458.8 |
Total Revenues | 25,351.1 | 18,882.7 |
Total Revenues excluding Interest Income | 22,304.1 | 17,006.3 |
Revenues represent the fair value of the consideration received or receivable for the sale of goods and services in the Group\u2019s ordinary course of business.
Contracts relating to vehicle leasing and service products can take the form of operating leases, finance leases and service agreements. To determine whether a contract includes an agreement for a period of time, the Group has assessed whether, throughout the period of use, the customer has both of the following:
If a contract relating to an asset fails to give the customer both of the above rights, the Group accounts for the agreement as a revenue contract. In situations where management services unrelated to an asset contract are provided, the Group accounts for the contract as a service contract.
In most situations, lease and service contracts are entered into at the same time or as a single contract with our customers. Where the customer is charged a monthly fee that both relates to the rental price of the vehicle (including depreciation and interest) and various other products and services that the customer can subscribe to, the standalone tariffed elements will be recognised as separate performance obligations if the good or service is distinct by meeting both the following criteria:
Activities or costs that transfer a good or service to the lessee are identified as non-lease components. Amounts payable for activities and costs that do not transfer a good or service are part of the total consideration and are allocated to the lease and non-lease components identified in the contract.
The lease classification, that is determined on a contract-by-contract basis, will determine if revenue recognition is on an operating lease or finance lease basis.
On operating leases, lease rental revenue (depreciation and interest) is recognised in accordance with IFRS\u00a016 on a straight-line basis over the lease term based on the total of the contractual payments divided by the number of months of the lease term.
Charges to customers may include passed on costs such as fuel, road taxes and other taxes which do not represent the inflow of economic benefits and/or are collected on behalf of third parties and are therefore not presented as revenues.
Upfront payments from customers at the beginning of the lease agreement are recognised in the balance sheet and amortised on a straight-line basis over the period of the lease agreement. Amounts paid or value provided to lessees as lease incentives are capitalised (e.g., upfront cash payments to the lessee, reimbursement or absorption of costs by the lessor or free or reduced rents given at the beginning of the lease term). Lease incentives are accounted for on a straight-line basis over the term of the related lease as a reduction in revenue.
Where a customer retains the car for a period beyond the normal return date (informal extension), the rent continues to be charged to the customer and the related contractual depreciation will continue to be recognised.
Regarding finance leases, the IFRS\u00a016\u00a0standard is applied, and the earnings are allocated between the capital amount and finance income. The capital amount is used to reduce the receivable balance and the income is recognised in the income statement in each period using the effective interest rate method to give a constant periodic rate of return on the net investment in the lease. The Group uses the net investment method to allocate gross earnings, which excludes the effect of cash flows arising from taxes and financing relating to a lease transaction. In addition:
Upfront payments and initial direct costs are taken into consideration in calculating the implicit interest rate in the lease and recognised evenly over the life of the lease.
If a contract contains a lease component and one or additional lease or non-lease components, then IFRS\u00a016 requires a lessor always to allocate the consideration in a contract following the approach in IFRS\u00a015 Revenue recognition.
The 5\u00a0steps process required by IFRS\u00a015 for non-lease components is summarised as follows:
Revenue from Fleet Management services is recognised on a straight-line basis over the term of the Fleet Management agreement.
Income related to repair, maintenance and tyres (RMT) is recognised over the term of the lease contract. The allocation of income over the term is based on the normal RMT cost profile supported by historical statistics and expected service costs. The difference between the amounts charged to customers and amounts recognised as income is accounted for as deferred leasing income. Cost profiles are reviewed periodically to ensure they remain a fair representation of historical RMT expenditures, adjusted for reasonable expectations of changes in cost profiles. Where an accurate or reliable estimate of the cost curve is not available, revenue is recognised based on an estimate of expected completion of the performance obligation using an alternative input method.
If income related to services surrounding contracts is not certain until final settlement takes place, this income is not recognised until that time and is presented within the sales result. For all other contracts, expected losses are recognised as an expense immediately when it is probable that total contract costs will exceed total contract revenues.
Flex Fleet revenues are recognised on a straight-line basis over the term of the rental agreement.
The revenue from the risk retention schemes is recognised based on the monthly lease instalment. This applies for third-party liability and own damage insurance products. Revenue recognition will cease when the contract is terminated by a customer or at the end of the contractual term.
Where interest on late payment is billed to customers, the related revenue is only recognised when settlements are made by customers.
Revenues also include the proceeds of the sale of vehicles from terminated lease contracts and lease revenues from end of contract billing such as repair costs recharged to the customer. The proceeds from the sale of vehicles are recognised when the vehicles are sold and control of the vehicles is transferred. End of contract fees may consist of fees charged to customers for mileage variation adjustments and excessive wear and tear of the vehicle. Revenues also include charges arising from deviations from the contractual terms, where the fees are recognised upon termination of the lease contract.
Income related to lease services is recognised over the term of the contract based on historical statistics and on assumptions regarding expected service costs. The assumptions may differ from the actual data as a result of changes in economic and market conditions and are periodically back tested and adjusted if considered necessary. For details in relation to the accounting of Note 3.4.20 Revenue recognition.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognitionOfRevenue", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_6ca9c12e-4b0f-4eb4-85a2-c7a40a325eb5": { "value": "Revenues represent the fair value of the consideration received or receivable for the sale of goods and services in the Group\u2019s ordinary course of business.
Contracts relating to vehicle leasing and service products can take the form of operating leases, finance leases and service agreements. To determine whether a contract includes an agreement for a period of time, the Group has assessed whether, throughout the period of use, the customer has both of the following:
If a contract relating to an asset fails to give the customer both of the above rights, the Group accounts for the agreement as a revenue contract. In situations where management services unrelated to an asset contract are provided, the Group accounts for the contract as a service contract.
In most situations, lease and service contracts are entered into at the same time or as a single contract with our customers. Where the customer is charged a monthly fee that both relates to the rental price of the vehicle (including depreciation and interest) and various other products and services that the customer can subscribe to, the standalone tariffed elements will be recognised as separate performance obligations if the good or service is distinct by meeting both the following criteria:
Activities or costs that transfer a good or service to the lessee are identified as non-lease components. Amounts payable for activities and costs that do not transfer a good or service are part of the total consideration and are allocated to the lease and non-lease components identified in the contract.
The lease classification, that is determined on a contract-by-contract basis, will determine if revenue recognition is on an operating lease or finance lease basis.
On operating leases, lease rental revenue (depreciation and interest) is recognised in accordance with IFRS\u00a016 on a straight-line basis over the lease term based on the total of the contractual payments divided by the number of months of the lease term.
Charges to customers may include passed on costs such as fuel, road taxes and other taxes which do not represent the inflow of economic benefits and/or are collected on behalf of third parties and are therefore not presented as revenues.
Upfront payments from customers at the beginning of the lease agreement are recognised in the balance sheet and amortised on a straight-line basis over the period of the lease agreement. Amounts paid or value provided to lessees as lease incentives are capitalised (e.g., upfront cash payments to the lessee, reimbursement or absorption of costs by the lessor or free or reduced rents given at the beginning of the lease term). Lease incentives are accounted for on a straight-line basis over the term of the related lease as a reduction in revenue.
Where a customer retains the car for a period beyond the normal return date (informal extension), the rent continues to be charged to the customer and the related contractual depreciation will continue to be recognised.
Regarding finance leases, the IFRS\u00a016\u00a0standard is applied, and the earnings are allocated between the capital amount and finance income. The capital amount is used to reduce the receivable balance and the income is recognised in the income statement in each period using the effective interest rate method to give a constant periodic rate of return on the net investment in the lease. The Group uses the net investment method to allocate gross earnings, which excludes the effect of cash flows arising from taxes and financing relating to a lease transaction. In addition:
Upfront payments and initial direct costs are taken into consideration in calculating the implicit interest rate in the lease and recognised evenly over the life of the lease.
If a contract contains a lease component and one or additional lease or non-lease components, then IFRS\u00a016 requires a lessor always to allocate the consideration in a contract following the approach in IFRS\u00a015 Revenue recognition.
The 5\u00a0steps process required by IFRS\u00a015 for non-lease components is summarised as follows:
Revenue from Fleet Management services is recognised on a straight-line basis over the term of the Fleet Management agreement.
Income related to repair, maintenance and tyres (RMT) is recognised over the term of the lease contract. The allocation of income over the term is based on the normal RMT cost profile supported by historical statistics and expected service costs. The difference between the amounts charged to customers and amounts recognised as income is accounted for as deferred leasing income. Cost profiles are reviewed periodically to ensure they remain a fair representation of historical RMT expenditures, adjusted for reasonable expectations of changes in cost profiles. Where an accurate or reliable estimate of the cost curve is not available, revenue is recognised based on an estimate of expected completion of the performance obligation using an alternative input method.
If income related to services surrounding contracts is not certain until final settlement takes place, this income is not recognised until that time and is presented within the sales result. For all other contracts, expected losses are recognised as an expense immediately when it is probable that total contract costs will exceed total contract revenues.
Flex Fleet revenues are recognised on a straight-line basis over the term of the rental agreement.
The revenue from the risk retention schemes is recognised based on the monthly lease instalment. This applies for third-party liability and own damage insurance products. Revenue recognition will cease when the contract is terminated by a customer or at the end of the contractual term.
Where interest on late payment is billed to customers, the related revenue is only recognised when settlements are made by customers.
Revenues also include the proceeds of the sale of vehicles from terminated lease contracts and lease revenues from end of contract billing such as repair costs recharged to the customer. The proceeds from the sale of vehicles are recognised when the vehicles are sold and control of the vehicles is transferred. End of contract fees may consist of fees charged to customers for mileage variation adjustments and excessive wear and tear of the vehicle. Revenues also include charges arising from deviations from the contractual terms, where the fees are recognised upon termination of the lease contract.
Income related to lease services is recognised over the term of the contract based on historical statistics and on assumptions regarding expected service costs. The assumptions may differ from the actual data as a result of changes in economic and market conditions and are periodically back tested and adjusted if considered necessary. For details in relation to the accounting of Note 3.4.20 Revenue recognition.
During the reporting period, the Group implemented a new regional structure for its operating segments, which reflects a strategic alignment with its management structure following the acquisition and integration of LeasePlan. The Group has appointed a new leadership team where the members of the Executive Committee hold supervisory responsibilities in line with the new regional structure of four regions. The new regional segmentation corresponds to the updated management structure. To ensure consistency and enhance decision-making, the new regional segmentation has been implemented across the Group\u2019s budgeting and internal reporting processes. Supporting departments, such as finance and human resources, have been restructured to align with the regional segments, creating an uniform approach to operational support.
The new regional segmentation comprises 4 regions with the following countries per region:
The performance of the operating segments is assessed based on a measure of revenue and profit before tax as presented in the consolidated financial statements. None of the Group\u2019s customers represent more than 10% of the total revenue.
\u00a0
\u00a0
(in EUR million) | Year ended 31\u00a0December 2024 | |||
|---|---|---|---|---|
Rental fleet | Total assets | Net financial debt | Revenue from external customers | |
Region 1 | 11,333.7 | 16,850.8 | 9,800.3 | 5,369.1 |
Region 2 | 16,949.1 | 24,913.7 | 14,286.2 | 8,390.7 |
Region 3 | 13,737.9 | 19,257.1 | 15,606.5 | 6,535.5 |
Region 4 | 9,529.3 | 14,094.2 | 9,316.4 | 5,055.9 |
TOTAL | 51,550.0 | 75,115.8 | 49,009.4 | 25,351.1 |
\u00a0
(in EUR million) | Year ended 31\u00a0December 2023 | |||
|---|---|---|---|---|
Rental fleet | Total assets | Net financial debt | Revenue from external customers | |
Region 1 | 10,912.9 | 15,550.7 | 9,336.1 | 4,096.8 |
Region 2 | 16,556.7 | 23,526.0 | 13,556.3 | 6,093.3 |
Region 3 | 12,825.0 | 17,431.6 | 13,622.6 | 4,637.3 |
Region 4 | 9,496.5 | 13,876.6 | 8,899.6 | 4,055.3 |
TOTAL | 49,791.2 | 70,384.8 | 45,414.5 | 18,882.7 |
\u00a0
Sales between segments are carried out at arm\u2019s length. The revenue from external parties reported to the Board of Directors is measured in a manner consistent with that in the income statement. There has been no inter-segment revenue for year ending 31\u00a0December 2024 and 2023.
\u00a0
(in EUR million) | Year ended 31\u00a0December | |
|---|---|---|
2024 | 2023 | |
Leasing revenues | 11,016.8 | 8,032.6 |
Service revenues | 5,451.0 | 4,391.2 |
Proceeds of cars sold | 8,883.3 | 6,458.8 |
Revenue from external customers | 25,351.1 | 18,882.7 |
Revenue from external customers and Rental Fleet by countries with Revenues in excess of EUR\u00a01\u00a0billion are detailed below:
(in EUR million) | Year ended 31\u00a0December 2024 | Year ended 31\u00a0December 2023 | Year ended 31\u00a0December 2024 | Year ended 31\u00a0December 2023 |
|---|---|---|---|---|
Revenue from external customers | Revenue from external customers | Rental fleet | Rental fleet | |
France | 3,805.8 | 3,003.1 | 8,794.0 | 8,139.0 |
Italy | 2,994.6 | 2,198.8 | 6,605.6 | 6,303.0 |
United Kingdom | 2,813.2 | 2,004.0 | 5,554.8 | 5,520.3 |
Netherlands | 2,406.7 | 1,925.1 | 5,474.8 | 4,084.1 |
Germany | 2,372.0 | 1,726.9 | 4,134.2 | 5,389.9 |
Spain | 1,839.5 | 1,553.2 | 3,888.4 | 3,967.0 |
Belgium | 1,627.9 | 1,157.3 | 3,612.5 | 3,340.5 |
Other countries | 7,491.4 | 5,314.3 | 13,485.7 | 13,047.4 |
TOTAL | 25,351.1 | 18,882.7 | 51,550.0 | 49,791.2 |
\u00a0
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Leasing revenue\u00a0\u2013 operating leases | 10,590.1 | 7,795.3 |
Interest income from finance lease | 124.7 | 89.4 |
Other interest income | 302.0 | 148.0 |
Leasing revenues | 11,016.8 | 8,032.6 |
Leasing costs\u00a0\u2013 depreciation | (8,085.7) | (6,171.0) |
Leasing costs\u00a0\u2013 financing: | \u00a0 | \u00a0 |
Interest charges on loans from financial institutions\u00a0(1) | (766.4) | (445.2) |
Interest charges on deposits | (381.1) | (169.0) |
Interest charges on issued bonds | (455.8) | (225.3) |
Other interest charges | (294.3) | (205.2) |
Total interest charges | (1,897.5) | (1,044.7) |
Leasing costs\u00a0\u2013 depreciation and financing | (9,983.2) | (7,215.7) |
Derivatives not in hedges | 45.5 | (152.0) |
Hedge ineffectiveness\u00a0\u2013 fair value hedges | (127.2) | (35.5) |
Hedge ineffectiveness\u00a0\u2013 cash flow hedges | 1.0 | 1.5 |
Unrealised gains/(losses) on derivative financial instruments | (80.6) | (186.0) |
Unrealised foreign exchange gains/(losses) | (3.6) | 4.5 |
Hyperinflation\u00a0\u2013 net monetary gain | 121.4 | 140.1 |
Total unrealised gains/(losses) on financial instruments and other | 37.1 | (41.4) |
Leasing margin | 1,070.7 | 775.5 |
|
\u201cLeasing costs \u2013 depreciation\u201d includes depreciation of vehicles which is calculated based on contractual residual values. Any impacts from the revision of residual values are recorded in the \u201cDepreciation adjustments\u201d in \u201cUsed car sales result and depreciation adjustments\u201d.
\u201cOther interest income\u201d comprises income received from financial instruments, income received for cash deposits with central banks and other third parties.
\u201cOther interest charges\u201d mainly comprise of interest charges incurred from asset-backed borrowings, net interest costs on derivative financial instruments, realised gains or losses on translation of financial liabilities and interest expense on lease liabilities.
Financial statements of the Turkish subsidiaries are based on a historic cost. Non-monetary items in the financial statements have been restated for the change in CPI (Consumer Price Index) from the date of their acquisition or initial recognition to the end of the reporting period.
Net monetary gain is derived as the difference resulting from the restatement of non-monetary assets, incomes and expenses at transaction date and the restatement of all components of equity from the beginning of the period.
Included within the \u201cLeasing costs\u201d, for hyperinflation in Turkey is an impairment of EUR\u00a061.5\u00a0million for year ending 31\u00a0December 2024 (2023: EUR\u00a067.2\u00a0million) relating to recoverability of the fleet assets and additional depreciation on the inflationary increase of EUR\u00a0121.3\u00a0million (2023: EUR\u00a033.7\u00a0million).
Total interest charges have increased significantly in the year ending 31\u00a0December 2024. \u201cInterest charge on loans from financial institutions\u201d has increased with the acquisition of LeasePlan in May\u00a02023, which has external funding arrangements and borrowing from central bank institutions as part of its banking operations. The new charge of \u201cInterest charges on deposits\u201d is also a result of interest paid on fixed term savings deposits, raised by Ayvens Bank in the Netherlands and in Germany. \u201cInterest charges on issued bonds\u201d has increased due to the issuance of new EMTN bonds in the year to finance the operations of the combined group, while the increase in \u201cOther interest charges\u201d are due to the additional asset-backed securitisation funding acquired on acquisition of LeasePlan. For more details of the funding changes from the acquisition of LeasePlan see Note\u00a029 Borrowing from financial institutions, Bonds and Notes issued.
The Group\u2019s activities are principally related to vehicle leasing and Fleet Management. The Group accepts and offers lease contracts to clients at both fixed and floating interest rates, for various periods and in various currencies. For a major part of the funding of the cars, the Group has entered into borrowings from external parties or issued notes to third parties. To mitigate the Group exposure towards future movements in interest rates and currency exchange rates the Group have entered into interest rate swaps and cross currency swap and forward arrangements. While as a result of these arrangements the Group mitigates interest rate risk and currency risk from an economic perspective, these derivatives do not always qualify for hedge accounting from an accounting perspective. The accounting treatment of derivative financial instruments exposes the Group to some volatility in its income statement. For more details see Note\u00a05 Financial Risk Management and Note\u00a019 Derivative financial instruments.
The \u201cHyperinflation \u2013 net monetary gain\u201d in the \u201cUnrealised gains/losses on financial instruments and other\u201d line in the income statement, includes the gain for the consumer price index inflation applied to the book value of the Turkish subsidiaries fleet of vehicles, share capital and retained earnings.
\u00a0
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Services revenue | 5,451.0 | 4,391.2 |
Cost of services revenues | (3,824.5) | (3,140.4) |
Services margin | 1,626.5 | 1,250.9 |
\u00a0
Revenues and costs are derived from the various service components included within the contractual lease instalments, such as maintenance and tyres, damage risk retention and replacement vehicles.
Services margin for the year ended 31\u00a0December 2024 includes an amount of EUR\u00a0114.1\u00a0million (2023: EUR\u00a089.8\u00a0million) related to insurance and reinsurance services. Refer to the following table for the breakdown:
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Insurance revenue | 541.9 | 433.4 |
Insurance expenses | (397.0) | (335.6) |
Insurance finance expenses | (30.8) | (8.0) |
Insurance result including insurance finance expenses | 114.1 | 89.8 |
\u00a0
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Proceeds of cars sold | 8,883.3 | 6,458.8 |
Cost of cars sold | (7,975.4) | (5,380.3) |
Used car sales result | 907.9 | 1,078.5 |
Depreciation costs adjustments | (590.9) | (195.4) |
Depreciation costs adjustments \u2013 revision of residual values | 24.3 | 553.2 |
Impact of previous depreciation adj on NBV of vehicles sold | (313.5) | (536.0) |
Purchase price allocation adjustments | (301.6) | (212.6) |
Used Car Sales result and depreciation adjustments | 317.1 | 883.1 |
\u00a0
Used vehicles prices have continued to drive high profit from the used car sales activity but as previously anticipated the used car market has been normalising with a gradual decline throughout 2024. Used car sales results remained strong despite the continued weakness of the EV used car market which was more than offset by the strong performance on ICE.
Revision of the expected residual values can result in one of three outcomes for the prospective depreciation over the remaining life of the contract:
\u00a0
Depreciation cost adjustments include all impacts from the revision of residual values process performed by the Group. For further detail see Note\u00a03.1 Basis of preparation, section Critical estimates, judgement and errors.
Depreciation costs adjustments have been negatively impacted by:
Revenues that are included within the margins analysed in 8a, 8b and 8c are shown in the following table. They are analysed into Revenues derived from the Rental activity and Proceeds of Cars sold at the end of the leasing period.
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Services revenues | 5,451.0 | 4,391.2 |
Proceeds of cars sold | 8,883.3 | 6,458.8 |
Revenues from contracts with customers excluding lease | 14,334.3 | 10,850.0 |
Leasing revenues | 11,016.8 | 8,032.6 |
Total Revenues | 25,351.1 | 18,882.7 |
\u00a0
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Services revenues | 5,451.0 | 4,391.2 |
Leasing revenue\u00a0\u2013 operating leases | 10,590.1 | 7,795.3 |
Interest revenue | 426.7 | 237.4 |
Leasing revenues | 11,016.8 | 8,032.6 |
Sub-Total\u00a0\u2013 Revenues from lease activity | 16,467.8 | 12,423.9 |
Proceeds of cars sold | 8,883.3 | 6,458.8 |
Total Revenues | 25,351.1 | 18,882.7 |
Total Revenues excluding Interest Income | 22,304.1 | 17,006.3 |
Direct cost of revenues comprises the cost associated with providing the above-mentioned service components of the lease instalment (including: vehicle maintenance, replacement costs and winter tyres, insurance premiums and the provision of short term replacement vehicles). Any (volume related) bonuses related to these expenses are credited directly to expenses. Bonuses received on purchases of objects for operating lease contracts are deducted from the purchase consideration and as such result in lower depreciation. Bonuses received on purchases of objects for finance lease contracts are recognised immediately in the consolidated income statement.
\u00a0
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Leasing revenue\u00a0\u2013 operating leases | 10,590.1 | 7,795.3 |
Interest income from finance lease | 124.7 | 89.4 |
Other interest income | 302.0 | 148.0 |
Leasing revenues | 11,016.8 | 8,032.6 |
Leasing costs\u00a0\u2013 depreciation | (8,085.7) | (6,171.0) |
Leasing costs\u00a0\u2013 financing: | \u00a0 | \u00a0 |
Interest charges on loans from financial institutions\u00a0(1) | (766.4) | (445.2) |
Interest charges on deposits | (381.1) | (169.0) |
Interest charges on issued bonds | (455.8) | (225.3) |
Other interest charges | (294.3) | (205.2) |
Total interest charges | (1,897.5) | (1,044.7) |
Leasing costs\u00a0\u2013 depreciation and financing | (9,983.2) | (7,215.7) |
Derivatives not in hedges | 45.5 | (152.0) |
Hedge ineffectiveness\u00a0\u2013 fair value hedges | (127.2) | (35.5) |
Hedge ineffectiveness\u00a0\u2013 cash flow hedges | 1.0 | 1.5 |
Unrealised gains/(losses) on derivative financial instruments | (80.6) | (186.0) |
Unrealised foreign exchange gains/(losses) | (3.6) | 4.5 |
Hyperinflation\u00a0\u2013 net monetary gain | 121.4 | 140.1 |
Total unrealised gains/(losses) on financial instruments and other | 37.1 | (41.4) |
Leasing margin | 1,070.7 | 775.5 |
|
\u201cLeasing costs \u2013 depreciation\u201d includes depreciation of vehicles which is calculated based on contractual residual values. Any impacts from the revision of residual values are recorded in the \u201cDepreciation adjustments\u201d in \u201cUsed car sales result and depreciation adjustments\u201d.
\u201cOther interest income\u201d comprises income received from financial instruments, income received for cash deposits with central banks and other third parties.
\u201cOther interest charges\u201d mainly comprise of interest charges incurred from asset-backed borrowings, net interest costs on derivative financial instruments, realised gains or losses on translation of financial liabilities and interest expense on lease liabilities.
Financial statements of the Turkish subsidiaries are based on a historic cost. Non-monetary items in the financial statements have been restated for the change in CPI (Consumer Price Index) from the date of their acquisition or initial recognition to the end of the reporting period.
Net monetary gain is derived as the difference resulting from the restatement of non-monetary assets, incomes and expenses at transaction date and the restatement of all components of equity from the beginning of the period.
Included within the \u201cLeasing costs\u201d, for hyperinflation in Turkey is an impairment of EUR\u00a061.5\u00a0million for year ending 31\u00a0December 2024 (2023: EUR\u00a067.2\u00a0million) relating to recoverability of the fleet assets and additional depreciation on the inflationary increase of EUR\u00a0121.3\u00a0million (2023: EUR\u00a033.7\u00a0million).
Total interest charges have increased significantly in the year ending 31\u00a0December 2024. \u201cInterest charge on loans from financial institutions\u201d has increased with the acquisition of LeasePlan in May\u00a02023, which has external funding arrangements and borrowing from central bank institutions as part of its banking operations. The new charge of \u201cInterest charges on deposits\u201d is also a result of interest paid on fixed term savings deposits, raised by Ayvens Bank in the Netherlands and in Germany. \u201cInterest charges on issued bonds\u201d has increased due to the issuance of new EMTN bonds in the year to finance the operations of the combined group, while the increase in \u201cOther interest charges\u201d are due to the additional asset-backed securitisation funding acquired on acquisition of LeasePlan. For more details of the funding changes from the acquisition of LeasePlan see Note\u00a029 Borrowing from financial institutions, Bonds and Notes issued.
The Group\u2019s activities are principally related to vehicle leasing and Fleet Management. The Group accepts and offers lease contracts to clients at both fixed and floating interest rates, for various periods and in various currencies. For a major part of the funding of the cars, the Group has entered into borrowings from external parties or issued notes to third parties. To mitigate the Group exposure towards future movements in interest rates and currency exchange rates the Group have entered into interest rate swaps and cross currency swap and forward arrangements. While as a result of these arrangements the Group mitigates interest rate risk and currency risk from an economic perspective, these derivatives do not always qualify for hedge accounting from an accounting perspective. The accounting treatment of derivative financial instruments exposes the Group to some volatility in its income statement. For more details see Note\u00a05 Financial Risk Management and Note\u00a019 Derivative financial instruments.
The \u201cHyperinflation \u2013 net monetary gain\u201d in the \u201cUnrealised gains/losses on financial instruments and other\u201d line in the income statement, includes the gain for the consumer price index inflation applied to the book value of the Turkish subsidiaries fleet of vehicles, share capital and retained earnings.
\u00a0
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Services revenue | 5,451.0 | 4,391.2 |
Cost of services revenues | (3,824.5) | (3,140.4) |
Services margin | 1,626.5 | 1,250.9 |
\u00a0
Revenues and costs are derived from the various service components included within the contractual lease instalments, such as maintenance and tyres, damage risk retention and replacement vehicles.
Services margin for the year ended 31\u00a0December 2024 includes an amount of EUR\u00a0114.1\u00a0million (2023: EUR\u00a089.8\u00a0million) related to insurance and reinsurance services. Refer to the following table for the breakdown:
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Insurance revenue | 541.9 | 433.4 |
Insurance expenses | (397.0) | (335.6) |
Insurance finance expenses | (30.8) | (8.0) |
Insurance result including insurance finance expenses | 114.1 | 89.8 |
\u00a0
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Proceeds of cars sold | 8,883.3 | 6,458.8 |
Cost of cars sold | (7,975.4) | (5,380.3) |
Used car sales result | 907.9 | 1,078.5 |
Depreciation costs adjustments | (590.9) | (195.4) |
Depreciation costs adjustments \u2013 revision of residual values | 24.3 | 553.2 |
Impact of previous depreciation adj on NBV of vehicles sold | (313.5) | (536.0) |
Purchase price allocation adjustments | (301.6) | (212.6) |
Used Car Sales result and depreciation adjustments | 317.1 | 883.1 |
\u00a0
Used vehicles prices have continued to drive high profit from the used car sales activity but as previously anticipated the used car market has been normalising with a gradual decline throughout 2024. Used car sales results remained strong despite the continued weakness of the EV used car market which was more than offset by the strong performance on ICE.
Revision of the expected residual values can result in one of three outcomes for the prospective depreciation over the remaining life of the contract:
\u00a0
Depreciation cost adjustments include all impacts from the revision of residual values process performed by the Group. For further detail see Note\u00a03.1 Basis of preparation, section Critical estimates, judgement and errors.
Depreciation costs adjustments have been negatively impacted by:
Revenues that are included within the margins analysed in 8a, 8b and 8c are shown in the following table. They are analysed into Revenues derived from the Rental activity and Proceeds of Cars sold at the end of the leasing period.
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Services revenues | 5,451.0 | 4,391.2 |
Proceeds of cars sold | 8,883.3 | 6,458.8 |
Revenues from contracts with customers excluding lease | 14,334.3 | 10,850.0 |
Leasing revenues | 11,016.8 | 8,032.6 |
Total Revenues | 25,351.1 | 18,882.7 |
\u00a0
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Services revenues | 5,451.0 | 4,391.2 |
Leasing revenue\u00a0\u2013 operating leases | 10,590.1 | 7,795.3 |
Interest revenue | 426.7 | 237.4 |
Leasing revenues | 11,016.8 | 8,032.6 |
Sub-Total\u00a0\u2013 Revenues from lease activity | 16,467.8 | 12,423.9 |
Proceeds of cars sold | 8,883.3 | 6,458.8 |
Total Revenues | 25,351.1 | 18,882.7 |
Total Revenues excluding Interest Income | 22,304.1 | 17,006.3 |
Interest income, interest charges and similar charges for all interest-bearing assets and liabilities are recognised in the income statement on an accrual basis using the effective interest method. The effective interest rate is the rate that exactly discounts the estimated future cash payments and receipts through the expected life of the financial asset or liability to the carrying amount of the financial asset or liability.
The interest income component in operating lease instalments, which is charged on a straight-line basis to the customer, is recognised in \u201cLeasing revenue \u2013 operating lease\u201d also on a straight line basis.
Interest income on finance lease contracts is recognised in the income statement on the basis of accruing interest income on the net investment (using the effective interest method). The receipts under the lease are allocated by the lessor between reducing the net investment and recognising interest income, to produce a constant rate of return on the net investment.
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Leasing revenue\u00a0\u2013 operating leases | 10,590.1 | 7,795.3 |
Interest income from finance lease | 124.7 | 89.4 |
Other interest income | 302.0 | 148.0 |
Leasing revenues | 11,016.8 | 8,032.6 |
Leasing costs\u00a0\u2013 depreciation | (8,085.7) | (6,171.0) |
Leasing costs\u00a0\u2013 financing: | \u00a0 | \u00a0 |
Interest charges on loans from financial institutions\u00a0(1) | (766.4) | (445.2) |
Interest charges on deposits | (381.1) | (169.0) |
Interest charges on issued bonds | (455.8) | (225.3) |
Other interest charges | (294.3) | (205.2) |
Total interest charges | (1,897.5) | (1,044.7) |
Leasing costs\u00a0\u2013 depreciation and financing | (9,983.2) | (7,215.7) |
Derivatives not in hedges | 45.5 | (152.0) |
Hedge ineffectiveness\u00a0\u2013 fair value hedges | (127.2) | (35.5) |
Hedge ineffectiveness\u00a0\u2013 cash flow hedges | 1.0 | 1.5 |
Unrealised gains/(losses) on derivative financial instruments | (80.6) | (186.0) |
Unrealised foreign exchange gains/(losses) | (3.6) | 4.5 |
Hyperinflation\u00a0\u2013 net monetary gain | 121.4 | 140.1 |
Total unrealised gains/(losses) on financial instruments and other | 37.1 | (41.4) |
Leasing margin | 1,070.7 | 775.5 |
|
\u201cLeasing costs \u2013 depreciation\u201d includes depreciation of vehicles which is calculated based on contractual residual values. Any impacts from the revision of residual values are recorded in the \u201cDepreciation adjustments\u201d in \u201cUsed car sales result and depreciation adjustments\u201d.
\u201cOther interest income\u201d comprises income received from financial instruments, income received for cash deposits with central banks and other third parties.
\u201cOther interest charges\u201d mainly comprise of interest charges incurred from asset-backed borrowings, net interest costs on derivative financial instruments, realised gains or losses on translation of financial liabilities and interest expense on lease liabilities.
Financial statements of the Turkish subsidiaries are based on a historic cost. Non-monetary items in the financial statements have been restated for the change in CPI (Consumer Price Index) from the date of their acquisition or initial recognition to the end of the reporting period.
Net monetary gain is derived as the difference resulting from the restatement of non-monetary assets, incomes and expenses at transaction date and the restatement of all components of equity from the beginning of the period.
Included within the \u201cLeasing costs\u201d, for hyperinflation in Turkey is an impairment of EUR\u00a061.5\u00a0million for year ending 31\u00a0December 2024 (2023: EUR\u00a067.2\u00a0million) relating to recoverability of the fleet assets and additional depreciation on the inflationary increase of EUR\u00a0121.3\u00a0million (2023: EUR\u00a033.7\u00a0million).
Total interest charges have increased significantly in the year ending 31\u00a0December 2024. \u201cInterest charge on loans from financial institutions\u201d has increased with the acquisition of LeasePlan in May\u00a02023, which has external funding arrangements and borrowing from central bank institutions as part of its banking operations. The new charge of \u201cInterest charges on deposits\u201d is also a result of interest paid on fixed term savings deposits, raised by Ayvens Bank in the Netherlands and in Germany. \u201cInterest charges on issued bonds\u201d has increased due to the issuance of new EMTN bonds in the year to finance the operations of the combined group, while the increase in \u201cOther interest charges\u201d are due to the additional asset-backed securitisation funding acquired on acquisition of LeasePlan. For more details of the funding changes from the acquisition of LeasePlan see Note\u00a029 Borrowing from financial institutions, Bonds and Notes issued.
The Group\u2019s activities are principally related to vehicle leasing and Fleet Management. The Group accepts and offers lease contracts to clients at both fixed and floating interest rates, for various periods and in various currencies. For a major part of the funding of the cars, the Group has entered into borrowings from external parties or issued notes to third parties. To mitigate the Group exposure towards future movements in interest rates and currency exchange rates the Group have entered into interest rate swaps and cross currency swap and forward arrangements. While as a result of these arrangements the Group mitigates interest rate risk and currency risk from an economic perspective, these derivatives do not always qualify for hedge accounting from an accounting perspective. The accounting treatment of derivative financial instruments exposes the Group to some volatility in its income statement. For more details see Note\u00a05 Financial Risk Management and Note\u00a019 Derivative financial instruments.
The \u201cHyperinflation \u2013 net monetary gain\u201d in the \u201cUnrealised gains/losses on financial instruments and other\u201d line in the income statement, includes the gain for the consumer price index inflation applied to the book value of the Turkish subsidiaries fleet of vehicles, share capital and retained earnings.
\u00a0
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceIncomeExpenseExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_ec0fa51c-94f7-4ca0-9f79-bd9cbc815792": { "value": "Interest income, interest charges and similar charges for all interest-bearing assets and liabilities are recognised in the income statement on an accrual basis using the effective interest method. The effective interest rate is the rate that exactly discounts the estimated future cash payments and receipts through the expected life of the financial asset or liability to the carrying amount of the financial asset or liability.
The interest income component in operating lease instalments, which is charged on a straight-line basis to the customer, is recognised in \u201cLeasing revenue \u2013 operating lease\u201d also on a straight line basis.
Interest income on finance lease contracts is recognised in the income statement on the basis of accruing interest income on the net investment (using the effective interest method). The receipts under the lease are allocated by the lessor between reducing the net investment and recognising interest income, to produce a constant rate of return on the net investment.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinanceIncomeAndCostsExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_20adb486-ae18-492e-bbb1-9a6effc258d8": { "value": "Interest income, interest charges and similar charges for all interest-bearing assets and liabilities are recognised in the income statement on an accrual basis using the effective interest method. The effective interest rate is the rate that exactly discounts the estimated future cash payments and receipts through the expected life of the financial asset or liability to the carrying amount of the financial asset or liability.
The interest income component in operating lease instalments, which is charged on a straight-line basis to the customer, is recognised in \u201cLeasing revenue \u2013 operating lease\u201d also on a straight line basis.
Interest income on finance lease contracts is recognised in the income statement on the basis of accruing interest income on the net investment (using the effective interest method). The receipts under the lease are allocated by the lessor between reducing the net investment and recognising interest income, to produce a constant rate of return on the net investment.
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Leasing revenue\u00a0\u2013 operating leases | 10,590.1 | 7,795.3 |
Interest income from finance lease | 124.7 | 89.4 |
Other interest income | 302.0 | 148.0 |
Leasing revenues | 11,016.8 | 8,032.6 |
Leasing costs\u00a0\u2013 depreciation | (8,085.7) | (6,171.0) |
Leasing costs\u00a0\u2013 financing: | \u00a0 | \u00a0 |
Interest charges on loans from financial institutions\u00a0(1) | (766.4) | (445.2) |
Interest charges on deposits | (381.1) | (169.0) |
Interest charges on issued bonds | (455.8) | (225.3) |
Other interest charges | (294.3) | (205.2) |
Total interest charges | (1,897.5) | (1,044.7) |
Leasing costs\u00a0\u2013 depreciation and financing | (9,983.2) | (7,215.7) |
Derivatives not in hedges | 45.5 | (152.0) |
Hedge ineffectiveness\u00a0\u2013 fair value hedges | (127.2) | (35.5) |
Hedge ineffectiveness\u00a0\u2013 cash flow hedges | 1.0 | 1.5 |
Unrealised gains/(losses) on derivative financial instruments | (80.6) | (186.0) |
Unrealised foreign exchange gains/(losses) | (3.6) | 4.5 |
Hyperinflation\u00a0\u2013 net monetary gain | 121.4 | 140.1 |
Total unrealised gains/(losses) on financial instruments and other | 37.1 | (41.4) |
Leasing margin | 1,070.7 | 775.5 |
|
\u201cLeasing costs \u2013 depreciation\u201d includes depreciation of vehicles which is calculated based on contractual residual values. Any impacts from the revision of residual values are recorded in the \u201cDepreciation adjustments\u201d in \u201cUsed car sales result and depreciation adjustments\u201d.
\u201cOther interest income\u201d comprises income received from financial instruments, income received for cash deposits with central banks and other third parties.
\u201cOther interest charges\u201d mainly comprise of interest charges incurred from asset-backed borrowings, net interest costs on derivative financial instruments, realised gains or losses on translation of financial liabilities and interest expense on lease liabilities.
Financial statements of the Turkish subsidiaries are based on a historic cost. Non-monetary items in the financial statements have been restated for the change in CPI (Consumer Price Index) from the date of their acquisition or initial recognition to the end of the reporting period.
Net monetary gain is derived as the difference resulting from the restatement of non-monetary assets, incomes and expenses at transaction date and the restatement of all components of equity from the beginning of the period.
Included within the \u201cLeasing costs\u201d, for hyperinflation in Turkey is an impairment of EUR\u00a061.5\u00a0million for year ending 31\u00a0December 2024 (2023: EUR\u00a067.2\u00a0million) relating to recoverability of the fleet assets and additional depreciation on the inflationary increase of EUR\u00a0121.3\u00a0million (2023: EUR\u00a033.7\u00a0million).
Total interest charges have increased significantly in the year ending 31\u00a0December 2024. \u201cInterest charge on loans from financial institutions\u201d has increased with the acquisition of LeasePlan in May\u00a02023, which has external funding arrangements and borrowing from central bank institutions as part of its banking operations. The new charge of \u201cInterest charges on deposits\u201d is also a result of interest paid on fixed term savings deposits, raised by Ayvens Bank in the Netherlands and in Germany. \u201cInterest charges on issued bonds\u201d has increased due to the issuance of new EMTN bonds in the year to finance the operations of the combined group, while the increase in \u201cOther interest charges\u201d are due to the additional asset-backed securitisation funding acquired on acquisition of LeasePlan. For more details of the funding changes from the acquisition of LeasePlan see Note\u00a029 Borrowing from financial institutions, Bonds and Notes issued.
The Group\u2019s activities are principally related to vehicle leasing and Fleet Management. The Group accepts and offers lease contracts to clients at both fixed and floating interest rates, for various periods and in various currencies. For a major part of the funding of the cars, the Group has entered into borrowings from external parties or issued notes to third parties. To mitigate the Group exposure towards future movements in interest rates and currency exchange rates the Group have entered into interest rate swaps and cross currency swap and forward arrangements. While as a result of these arrangements the Group mitigates interest rate risk and currency risk from an economic perspective, these derivatives do not always qualify for hedge accounting from an accounting perspective. The accounting treatment of derivative financial instruments exposes the Group to some volatility in its income statement. For more details see Note\u00a05 Financial Risk Management and Note\u00a019 Derivative financial instruments.
The \u201cHyperinflation \u2013 net monetary gain\u201d in the \u201cUnrealised gains/losses on financial instruments and other\u201d line in the income statement, includes the gain for the consumer price index inflation applied to the book value of the Turkish subsidiaries fleet of vehicles, share capital and retained earnings.
\u00a0
", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestIncomeExpenseExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_e8960b09-03c6-4d40-a418-ae87b8d3ceb2": { "value": "Interest income, interest charges and similar charges for all interest-bearing assets and liabilities are recognised in the income statement on an accrual basis using the effective interest method. The effective interest rate is the rate that exactly discounts the estimated future cash payments and receipts through the expected life of the financial asset or liability to the carrying amount of the financial asset or liability.
The interest income component in operating lease instalments, which is charged on a straight-line basis to the customer, is recognised in \u201cLeasing revenue \u2013 operating lease\u201d also on a straight line basis.
Interest income on finance lease contracts is recognised in the income statement on the basis of accruing interest income on the net investment (using the effective interest method). The receipts under the lease are allocated by the lessor between reducing the net investment and recognising interest income, to produce a constant rate of return on the net investment.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInterestIncomeAndExpenseExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_f28fb45d-6f8d-4629-afb5-39eaa072a5d4": { "value": "This item includes office overheads, automation costs, advertising costs, professional fees and other general expenses.
", "dimensions": { "concept": "ifrs-full:DisclosureOfProfitLossFromOperatingActivitiesExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_9ccc73de-1966-48de-84c6-b6a6aa2318a5": { "value": "Some employees (including senior executives) of the Group receive remuneration in the form of share-based payments via the Group long-term incentive plans and employee share schemes, whereby employees render services in exchange for equity-settled transactions and cash-settled transactions. Information relating to these schemes is set out in Note\u00a028.
The fair value of shares granted under the Group long-term incentive plan is recognised as an employee benefits expense with a corresponding increase in equity. The total amount to be expensed is determined by reference to the fair value of the shares granted. The total expense is recognised over the vesting period, which is the period when all of the specified vesting conditions are to be satisfied. At the end of each period, the entity revises its estimates of the number of shares that are expected to vest based on the non-market vesting and service conditions. It recognises the impact of the revision to original estimates, if any, in profit or loss, with a corresponding adjustment to equity.
The Group has variable remuneration awards for the identified staff that consists of a direct payment in cash and a deferred payment in cash and shares. The shares entitle the participant to a payment in cash after a specified period and are recognised as a cash-settled share-based payment arrangement. The shares part of the deferred award is revalued annually by estimating the Company\u2019s equity value for determining the fair value of the outstanding shares awards.
Liabilities recognised for shares are measured at the estimated fair value. This fair value is established once a year by the (Remuneration Committee of the) Board of Directors and is based on comparing financial performance of the Company to publicly available valuation and financial performance of a selected peer group of comparable companies. All changes to the shares\u2019 liabilities are recognised in the statement of profit or loss under staff expenses.
In 2024, five new equity-settled share-based payment plans were approved by the Ayvens Board of Directors. The plans are designed to provide long-term incentives for selected employees across the Group to deliver long-term shareholder returns. Under the plans, participants are granted free shares in the parent company Ayvens\u00a0SA which will only vest if certain performance and service conditions are met. Participation in the plan is at the Board\u2019s discretion and no individual has a contractual right to participate in the plan or to receive any guaranteed benefits. Shares are granted under the plans for no consideration and carry no dividend or voting rights. Prior to approval of the plans Ayvens\u00a0SA did not hold any shares bound to be distributed to its own employees, therefore Ayvens\u00a0SA can either issue new shares or acquire its own shares on the market between the grant date and vesting date in order to settle the obligation to its employees.
\u00a0
\u00a0 | Plan 13.A | Plan 13.B | Plan 14.A | Plan 14.B | Plan 14.C |
|---|---|---|---|---|---|
Date of Board Meeting | 21\u00a0March 2024 | 21\u00a0March 2024 | 21\u00a0March 2024 | 21\u00a0March 2024 | 21\u00a0March 2024 |
Total number of shares granted | 23,841 | 23,843 | 8,492 | 8,492 | 8,495 |
Vesting date | 31\u00a0March 2027 | 31\u00a0March 2028 | 31\u00a0March 2027 | 31\u00a0March 2028 | 31\u00a0March 2029 |
Holding period end date | 31\u00a0March 2028 | 31\u00a0March 2029 | 31\u00a0March 2028 | 31\u00a0March 2029 | 31\u00a0March 2030 |
Fair value (in EUR) | 4.85 | 4.80 | 4.85 | 4.80 | 4.58 |
Number of employees in the plan | 11 | 11 | 2 | 2 | 2 |
\u00a0
\u00a0 | Plan 11 | Plan 12.A | Plan 12.B |
|---|---|---|---|
Date of Board Meeting | 23\u00a0March 2023 | 23\u00a0March 2023 | 23\u00a0March 2023 |
Total number of shares granted | 395,017 | 19,123 | 19,127 |
Vesting date | 31\u00a0March 2026 | 31\u00a0March 2026 | 31\u00a0March 2027 |
Holding period end date | no holding period | 30\u00a0September 2026 | 30\u00a0September 2027 |
Fair value (in EUR) | 8.31 | 8.31 | 8.31 |
Number of employees in the plan | 393 | 6 | 6 |
\u00a0
\u00a0 | Plan 9 | Plan 10.A | Plan 10.B |
|---|---|---|---|
Date of Board Meeting | 29\u00a0March 2022 | 29\u00a0March 2022 | 29\u00a0March 2022 |
Total number of shares granted | 409,602 | 12,720 | 12,723 |
Vesting date | 31\u00a0March 2025 | 31\u00a0March 2025 | 31\u00a0March 2026 |
Holding period end date | no holding period | 30\u00a0September 2025 | 30\u00a0September 2026 |
Fair value (in EUR) | 9.51 | 9.51 | 9.51 |
Number of employees in the plan | 374 | 6 | 6 |
\u00a0
Vesting conditions are based on Ayvens\u2019 profitability, as measured by the average Group Net income over the 4, 3 or 2\u00a0years of the vesting period. The ALD Group Net income corresponds to the published Ayvens Group Net income.
At 31\u00a0December 2024, 564\u00a0employees (728\u00a0employees as at 31\u00a0December 2023) benefit from the long-term incentives plans.
The following table shows the shares granted and outstanding shares at the beginning and end of the reporting period.
\u00a0 | Number of shares |
|---|---|
As at 1\u00a0January 2023 | 1,028,767 |
Granted during the year | 433,267 |
Vested during the year | (373,694) |
Forfeited during the year | (45,251) |
As at 31\u00a0December 2023 | 1,043,089 |
As at 1\u00a0January 2024 | 1,043,089 |
Granted during the year | 73,163 |
Vested during the year | (274,602) |
Forfeited during the year | (50,827) |
As at 31\u00a0December 2024 | 790,823 |
\u00a0
For equity settled share-based payments, the fair value of these instruments, measured at the grant date, is spread over the vesting period and recorded in shareholders\u2019 equity under retained earnings and other reserves. At each accounting date, the number of these instruments is revised in order to take into account vesting conditions and adjust the overall cost of the plan as originally determined. Expenses recognised under Staff expenses from the start of the plan and adjusted accordingly.
\u00a0
(in EUR Million) | 31\u00a0December 2024 | 31\u00a0December 2023 |
|---|---|---|
Net expenses from free share ALD plans | (2.5) | (3.2) |
\u00a0
\u00a0
In the former LeasePlan entities, there are variable remuneration schemes. The maximum amount is capped at 50% of fixed remuneration for employees and 20% for employees who work for the Dutch operating entity.
Variable remuneration for senior management consists of cash (50%) and non-cash elements (50%), i.e. PSUs. 50% of the variable remuneration of senior management is paid upfront and 50% of the variable remuneration is deferred for a period of four years, whereby every year one-fourth vests. The Managing Board has a deferral period of five years and 60% is deferred. PSUs have a retention period of one year after vesting.
The expense during the year ended 31\u00a0December 2024 is included in the \u201cStaff expenses\u201d and is not material to the Group.
", "dimensions": { "concept": "ifrs-full:DisclosureOfSharebasedPaymentArrangementsExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_d9fa605e-8daf-4e7b-9cb1-1da4316a47f8": { "value": "Some employees (including senior executives) of the Group receive remuneration in the form of share-based payments via the Group long-term incentive plans and employee share schemes, whereby employees render services in exchange for equity-settled transactions and cash-settled transactions. Information relating to these schemes is set out in Note\u00a028.
The fair value of shares granted under the Group long-term incentive plan is recognised as an employee benefits expense with a corresponding increase in equity. The total amount to be expensed is determined by reference to the fair value of the shares granted. The total expense is recognised over the vesting period, which is the period when all of the specified vesting conditions are to be satisfied. At the end of each period, the entity revises its estimates of the number of shares that are expected to vest based on the non-market vesting and service conditions. It recognises the impact of the revision to original estimates, if any, in profit or loss, with a corresponding adjustment to equity.
The Group has variable remuneration awards for the identified staff that consists of a direct payment in cash and a deferred payment in cash and shares. The shares entitle the participant to a payment in cash after a specified period and are recognised as a cash-settled share-based payment arrangement. The shares part of the deferred award is revalued annually by estimating the Company\u2019s equity value for determining the fair value of the outstanding shares awards.
Liabilities recognised for shares are measured at the estimated fair value. This fair value is established once a year by the (Remuneration Committee of the) Board of Directors and is based on comparing financial performance of the Company to publicly available valuation and financial performance of a selected peer group of comparable companies. All changes to the shares\u2019 liabilities are recognised in the statement of profit or loss under staff expenses.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSharebasedPaymentTransactionsExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_d47e3cc7-18a9-4bd9-a803-dc7bf692ff71": { "value": "Basic EPS is calculated by dividing the profit for the year attributable to ordinary equity holders of the parent (after adjusting for interest on the AT1 capital) by the weighted average number of ordinary shares outstanding during the year.
Diluted EPS is calculated by dividing the profit attributable to ordinary equity holders of the parent (after adjusting for interest on the AT1 capital) by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares.
\u00a0
The weighted average number of shares outstanding in the computation of diluted earnings per share includes the number of shares to be issued for the warrants at no consideration adjusted for deduction of the ordinary shares that would be purchased in the open market using the expected proceeds.
The Group is authorised to purchase its own shares for the purposes of attributing, covering and paying off any scheme for the allocation of free shares, employee savings scheme and any other form of allocation to employees and executive directors of the Company or of companies related to it under the conditions set out in applicable legislative and regulatory provisions. Rights to free ordinary shares granted to employees will be settled with treasury shares under the long-term incentives employee plans. Treasury shares are included in the calculation of diluted earnings per share assuming all outstanding rights will vest.
\u00a0 | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Net income Group share (in EUR million) | 683.6 | 760.0 |
Result after tax from discontinued operations (in EUR million) | 0.0 | 77.6 |
Attributable remuneration to AT1 capital holders (in EUR million) | (73.5) | (45.0) |
Net income from continuing operations Group share (in EUR million) | 610.1 | 792.6 |
Weighted average number of ordinary shares with voting rights (in thousands) | 815,827 | 711,058 |
Basic earnings per share from continuing operations (in cents) | 0.75 | 1.11 |
Net income Group share (in EUR million) | 683.6 | 760.0 |
Attributable remuneration to AT1 capital holders (in EUR million) | (73.5) | (45.0) |
Net income Group share (in EUR million) | 610.1 | 715.1 |
Weighted average number of ordinary shares with voting rights (in thousands) | 815,827 | 711,058 |
Basic earnings per share (in cents) | 0.75 | 1.01 |
\u00a0
\u00a0 | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Net income from continuing operations Group share (in EUR million) | 610.1 | 792.6 |
Weighted average number of ordinary shares (in thousands) | 834,984 | 722,914 |
Diluted earnings per share from continuing operations (in EUR) | 0.73 | 1.10 |
Net income Group share (in EUR million) | 610.1 | 715.1 |
Weighted average number of ordinary shares (in thousands) | 834,984 | 722,914 |
Diluted earnings per share (in cents) | 0.73 | 0.99 |
Basic EPS is calculated by dividing the profit for the year attributable to ordinary equity holders of the parent (after adjusting for interest on the AT1 capital) by the weighted average number of ordinary shares outstanding during the year.
Diluted EPS is calculated by dividing the profit attributable to ordinary equity holders of the parent (after adjusting for interest on the AT1 capital) by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEarningsPerShareExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_6a8b9c4c-3ac2-4658-bc60-656235f24d35": { "value": "For litigation, when there is a legal or constructive obligation and it is more likely than not that there will be an outflow of benefits which can be measured reliably, the best estimate of the future outflow of resources has been recognised. In extremely rare situations where no reliable estimate can be made yet on claims expected, no provision will be recognised in the balance sheet but information about a contingent liability will be disclosed.
Every quarter it is assessed whether the litigation provisions are still sufficient and or still relevant.\u00a0
Further details are provided in Note\u00a032 Provisions.
A guarantee at first demand has been granted to ING Luxembourg for an amount of EUR\u00a050\u00a0million on behalf of Axus Luxembourg SA.
A guarantee has been granted to Stellantis\u00a0SA for an amount of EUR\u00a020\u00a0million on behalf of Fleetpool, under the condition negotiated in the frame of the distribution agreement concluded with this financial institution.
The Group has issued guarantees to the total value of EUR\u00a0324.4\u00a0million of which EUR\u00a0322.4\u00a0million is related to residual value guarantees issued to clients.
The Group has entered into commitments relating to the forward purchase of property and equipment under operating lease and rental fleet amounting to EUR\u00a06.4\u00a0billion (2023: EUR\u00a09.5\u00a0billion) as at the balance sheet date. These commitments are entered into in the ordinary course of business and the majority is back-to-back matched with lease contracts entered into with customers.
In addition, the Group has provided guarantees and counter-guarantees on behalf of its subsidiaries in the event of external financing or property leases of a total amount of EUR 0.8 billion as at 31 December 2024.
As part of Ayvens\u2019 legal and compliance obligations, investigations in certain past business practices were initiated by Ayvens in Germany. The process is ongoing and no assessment of its outcome can be made before the investigations are further advanced of completed. Therefore, Ayvens is not in the position to assess the financial consequences, but, at this stage, it is not expected that the results of such investigations would have a material financial impact for the Group.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsAndContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_89b8f2eb-25b2-4134-bb44-1982e6fbba65": { "value": "For litigation, when there is a legal or constructive obligation and it is more likely than not that there will be an outflow of benefits which can be measured reliably, the best estimate of the future outflow of resources has been recognised. In extremely rare situations where no reliable estimate can be made yet on claims expected, no provision will be recognised in the balance sheet but information about a contingent liability will be disclosed.
Every quarter it is assessed whether the litigation provisions are still sufficient and or still relevant.\u00a0
Further details are provided in Note\u00a032 Provisions.
As part of Ayvens\u2019 legal and compliance obligations, investigations in certain past business practices were initiated by Ayvens in Germany. The process is ongoing and no assessment of its outcome can be made before the investigations are further advanced of completed. Therefore, Ayvens is not in the position to assess the financial consequences, but, at this stage, it is not expected that the results of such investigations would have a material financial impact for the Group.
", "dimensions": { "concept": "ifrs-full:DisclosureOfContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_6f588b28-877d-416b-a56d-fad3013a26b0": { "value": "For litigation, when there is a legal or constructive obligation and it is more likely than not that there will be an outflow of benefits which can be measured reliably, the best estimate of the future outflow of resources has been recognised. In extremely rare situations where no reliable estimate can be made yet on claims expected, no provision will be recognised in the balance sheet but information about a contingent liability will be disclosed.
Every quarter it is assessed whether the litigation provisions are still sufficient and or still relevant.\u00a0
Further details are provided in Note\u00a032 Provisions.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForContingentLiabilitiesAndContingentAssetsExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_cac379dc-d773-49a8-95bb-762a09b2dfc7": { "value": "\u00a0
Credit risk refers to the risk of losses resulting from the inability of Group customers, issuers or other counterparties to meet their financial commitments. Credit risk may be aggravated by concentration risk, resulting from a high exposure to a given risk or to one or more counterparties, or to one or more groups of similar counterparties. In addition to the risk of lessees not making payments for the leased vehicles, the Group is exposed to credit risk originating from its banking and treasury activities, which includes deposits and investments placed with financial institutions and hedging instruments, such as derivatives, as well as from its remarketing and reinsurance activities. The Group\u2019s maximum exposure to credit risk primarily arises from these financial assets and is as follows:
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Cash and cash equivalents | 5,023.0 | 3,997.0 |
Lease receivables from clients | 4,083.6 | 4,530.7 |
Other receivables, prepayments and contract assets\u00a0(1) | 1,373.5 | 1,217.0 |
Investment in debt and equity securities\u00a0(1) | 377.8 | 118.9 |
Derivative financial assets | 133.5 | 383.3 |
Total exposure | 10,991.4 | 10,246.8 |
|
\u00a0
The Group\u2019s definition of default for the purpose of determining ECLs, and for internal credit risk management purposes aligns to the ECB Regulatory Capital CRR Article\u00a0178 definition of default, to maintain a consistent approach with IFRS\u00a09 and associated regulatory guidance.
The Group has issued policies and standards which regulate the governance of the local credit risk management organisation. All Group entities must comply with risk procedures issued centrally which define the way credit requests have to be studied and validated, as well as the roles and responsibilities of all staff involved in the credit assessment process. Each subsidiary has a specific credit authority approved by the Group General Management and the Risk Department of Societe Generale Group, that is determined by the size of the fleet, the maturity of the subsidiary and the type of customer concerned (corporate, retail, financial institution, etc.). Within its credit delegation, each subsidiary can decide directly on its counterparty risk and concentration risk. Above this threshold, credit acceptance is made at central level jointly with/or at the Risk Department of Societe Generale.
Regular Risk Committees are held by the Group in order to review all potential risk issues and to ensure the credit risk procedures are properly applied. All standard risk indicators (arrears/default/Cost of risk) are also monitored centrally. However, the primary responsibility for debt collection remains with the Group subsidiaries that have dedicated teams in charge of recovering unpaid invoices in compliance with local regulations and market practices. These local processes are required to be compliant with the corporate instructions and guidelines. Central monitoring of all ageing balances is performed on a monthly basis as part of the regular risk reviews, and action plans are set up whenever necessary. Each local entity is required to maintain a watch list, which is based on credit rating and other available information. These lists are reviewed in regular meetings by the Entity Risk Committees. A qualitative analysis of total credit exposures, defaults and losses is reported on a monthly basis and discussed at the Entity Risk Committee locally (frequency depending on the size of the entity) and quarterly in the Credit Risk Committee centrally.
The Group limits credit risk on liquid funds and derivative financial instruments through diversification of exposures with a range of financial institutions. Counterparty limits are set for each financial institution with reference to credit ratings assigned by Standard & Poor\u2019s and Moody\u2019s. Limits are set on a legal entity basis and are included in the Group\u2019s risk appetite and approved on a yearly basis. The Group\u2019s treasury risk management monitors the exposures, against the approved limits, on an ongoing basis.
The Group applies the IFRS\u00a09 simplified approach for measuring expected credit losses which uses a lifetime expected loss allowance for all sound trade and lease receivables. In 2024 the Group has aligned the methodologies used to calculate the expected credit loss (ECL) between the legacy ALD entities and the legacy LeasePlan entities.
Where trade receivables and finance lease receivables are not in default, the Group does not track changes in credit risk, but instead recognises a loss allowance based on expected lifetime losses from initial recognition of the receivables. These losses are measured based on a provision matrix for receivables associated with sound customers. Probability of Default (PD) rates are based on observed default rates over the life of the receivables (the average contract length in each entity). Specific PD rates are calculated for each entity and each customer type. This process results in PD rates for each age of past-due receivables. The PD rates are applied to the aged receivables of the reporting period to arrive at a total provision. The final impairment allowance is also adjusted to consider Loss Given Default (LGD) specific to the entity and the historical loss rates are adjusted to reflect current and forward-looking information on specific local economies affecting the ability of the customers to settle the receivables. When in default, the receivables from leases with customers are provisioned at 100%.
Expected credit losses are reassessed at each reporting date and reflect all reasonable information that is available at the reporting date and management consider the current level of provisions to be adequate. The Group will continue to monitor the provision parameters, including the relevance of the local uplift factors, according to the macroeconomic situation. Further information on the expected loss provision on receivables from leases is included in Note\u00a022. Given the diverse nature of the Group\u2019s operations (both in relation to customer type and geographically), the Group does not have significant concentration of credit risk with respect to lease receivables from clients, with exposure spread over a large number of customers.
For other financial assets listed above where there is zero or almost no history of credit risk or the amounts due are from financial institutions with an investment grade credit rating, no provision has been applied. For all other counterparties the ECL is based on the General Approach, where the expected credit loss model is calculated by multiplying the PD, LGD and the Exposure at Default (EAD), but the level of provisioning is dependent on the credit deterioration of the asset in line with IFRS\u00a09. The provisioning on other receivables is limited.
\u00a0
Structural risk consists of three individual risks, being liquidity risk, interest rate risk and currency risk. Liquidity risk is the risk that the Group is not able to meet its cash outflow obligations when they fall due, because of a mismatch between its assets and liabilities. Interest rate risk is the risk that the profitability and shareholders\u2019 equity of the Group are affected by movements in interest rates. Currency risk is the risk that currency fluctuations have an adverse impact on the Group\u2019s capital ratios, result and shareholders\u2019 equity.
The key structural risk management principle consists of matching assets and liabilities in terms of maturities, currencies, and interest rate exposure. Group procedures defining the sensitivity measurement of such risks and tolerance levels are applied across the Group to allow a close monitoring of structural risks. These risks are monitored at the Group level by the Asset and Liability Committee (ALCO). This committee is informed about all relevant developments with regards to the Group\u2019s structural risk profile and decides any action to mitigate the risks when necessary.
The Group accepts and offers lease contracts to clients at both fixed and floating interest rates, for various durations and in various currencies. Most lease contracts are on a fixed interest rate basis. Interest rate risk within the Group is managed separately for:
The main interest rate risk principle is to match the interest rate risk profile of the lease contract portfolio with a corresponding interest rate funding profile to minimise the interest rate risk as measured by interest rate gap reports per Group entity. Group entities carry interest-bearing assets on their balance sheet, funded by interest-bearing liabilities (loans and other indebtedness).
The Group central treasury monitors the Group\u2019s interest rate risk exposure and instructs subsidiaries to implement adequate hedging operations based on a monthly report measuring interest risk exposure. Each entity and the Group as a whole are subject to sensitivity thresholds and limits validated by the Asset and Liability Committee (ALCO). The Group structural risks are discussed on a quarterly basis during ALCO meetings.
For the Group, the sensitivity metric used is the variation in the net present value of the future residual fixed-rate positions (surplus or deficit) for non-stressed shocks of +10\u00a0bps and -10\u00a0bps in the yield curve. The table below reflects the balance sheet exposure of the Group\u2019s financial liabilities to interest rate risk:
\u00a0
NPV sensitivity impact (in EUR million)\u00a0(1) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
+10\u00a0bps | (2.7) | 0.7 |
-10\u00a0bps | 2.7 | (0.8) |
|
\u00a0
For a +10bps scenario, a positive NPV sensitivity represents an excess of fixed rate resources while a negative NPV sensitivity represents a deficit of fixed rate resources. The variation between 2023 and 2024 is mainly explained by the implementation of a new equity convention(1)\u00a0in compliance with Societe Generale Group standards. At the end of 2024, the NPV sensitivity is negative but within the limits. The position is mainly driven by the hedging of the order banks. See Note\u00a029 for further details.
The Group\u2019s functional currency and the reporting currency for its consolidated financial statements is the euro. However, because of its presence in a significant number of countries outside the Eurozone, the Group has substantial assets, liabilities, revenues and costs denominated in currencies other than the euro. The global nature of the Group\u2019s operations therefore exposes the Group to exchange rate volatility as a result of potential mismatches between the currencies in which assets and liabilities are denominated, and as a result of the translation effect on its reported earnings, cash flow and financial condition. The Group is exposed to transactional foreign exchange rate risk when a subsidiary enters into a transaction in a currency other than the subsidiary\u2019s functional currency. The Group seeks to manage its transactional foreign exchange rate risk by attempting to limit the Group\u2019s exposure to the effects of fluctuations in currencies on its statement of financial condition and cash flows through funding its debt directly or through derivatives in the currency in which assets are originated and allocating capital in the currencies in which assets are denominated.
In short, the Group has the following risk management approach regarding currency risk:
Based on the currency risk management approach the Group\u2019s capital adequacy ratio is minimally exposed to changes in the exchange rates it is exposed to. In order to monitor and manage its currency risk exposure, the Group has defined triggers and limits on its structural risk exposure, in accordance with EBA Guidelines.
The Group quantifies its exposure to structural exchange rate risks for each subsidiary by analysing all assets and liabilities arising from commercial operations and proprietary transactions. The risk sensitivity is measured by quantifying the impact of a variation of 10% of the exchange rate (hard currencies against local currency) and a threshold is defined for each subsidiary.
\u00a0
The following table shows the net currency position of foreign currencies which the Group is most exposed to as at 31\u00a0December 2024, and with all other variables remaining constant, the impact if the Euro strengthened or weakened by 10% against these foreign currencies positions held by the Group:
Income statement impact (in EUR million) | 2024 Net exposure | 2024 +10% | 2024 -10% |
|---|---|---|---|
Pound Sterling (GBP) | 561.4 | (51.0) | 62.4 |
Turkish Lira (TRY) | 712.0 | (64.7) | 79.1 |
Brazilian Real (BRL) | 184.1 | (16.7) | 20.5 |
Czech Koruna (CZK) | 110.3 | (10.0) | 12.3 |
Swedish Krona (SEK) | 126.2 | (11.5) | 14.0 |
Norwegian Krone (NOK) | 161.8 | (14.7) | 18.0 |
Danish Krone (DKK) | 201.8 | (18.3) | 22.4 |
Other\u00a0(1) | 631.4 | (51.6) | 63.1 |
|
\u00a0
Income statement impact (in EUR million) | 2023 Net exposure | 2023 +10% | 2023 -10% |
|---|---|---|---|
Pound Sterling (GBP) | 549.4 | (49.9) | 61.0 |
Turkish Lira (TRY) | 579.3 | (52.7) | 64.4 |
Brazilian Real (BRL) | 162.1 | (14.7) | 18.0 |
Czech Koruna (CZK) | 131.1 | (11.9) | 14.6 |
Swedish Krona (SEK) | 114.4 | (10.4) | 12.7 |
Norwegian Krone (NOK) | 114.0 | (10.4) | 12.7 |
Danish Krone (DKK) | 113.2 | (10.3) | 12.6 |
Other\u00a0(1) | 597.9 | (48.9) | 59.7 |
|
\u00a0
The Group is exposed to liquidity risk which is the risk of not being able to meet cash flow requirements when they fall due. A structural liquidity position is defined as resulting from the maturities of all balance sheet or off-balance sheet outstanding positions according to their liquidity profile.
The liquidity risk appetite and tolerance levels are based on the following key principles:
Note\u00a029 details the maturity of the Group borrowing and debt issued.
As a precaution to the risk of not having continued access to financial markets for funding, the Group maintains a liquidity buffer. This buffer includes unencumbered cash and committed (standby) credit facilities to reduce the Group\u2019s liquidity risk. The liquidity buffer as per 31\u00a0December is specified as follows:
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Unencumbered cash at banks | 119.7 | 146.1 |
Unencumbered cash at Central bank | 4,335.6 | 3,535.6 |
Total on balance liquidity buffer | 4,455.3 | 3,681.6 |
Committed undrawn facilities | 1,750.0 | 1,951.0 |
Total | 6,205.3 | 5,632.6 |
\u00a0
The Group holds total revolving credit facilities with a consortium of banks as at 31\u00a0December 2024, of which EUR\u00a01.75\u00a0billion is undrawn (31\u00a0December 2023: EUR\u00a01.95\u00a0billion). In addition, the Group holds a revolving credit facility with Societe Generale of which EUR\u00a03.8\u00a0billion was undrawn per 31\u00a0December 2024.
Ayvens\u00a0SA is a Financial Holding Company regulated by the European Central Bank (ECB). Ayvens Bank\u00a0NV, a subsidiary 100% owned by LeasePlan Group BV, which is 100% owned by Ayvens\u00a0SA is regulated as a financial institution. The European Central Bank sets out minimum liquidity level requirements on Ayvens Bank\u00a0NV demanding that available liquidity exceeds required liquidity at all times as well as a Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) above 100%. These minimum liquidity requirements are complied with.
Derivatives are used to mitigate the interest rate and currency exposures associated with the funding of lease contracts. Interest rate swaps cover interest rate positions between lease contracts and borrowed funds and currency interest rate swaps cover currency exposures between lease contracts and borrowed funds. The extent of exposure management is in line with internal risk appetite and limits determined by the Group risk management and reviewed on a regular basis. The Group uses a mixture of one-to-one relationships (micro hedging), as well as many-to-many macro hedging (macro hedging).
The Group is exposed to asset risk, which can be split into two main underlying risk components: the residual value risk and the risk related to repair and maintenance.
Residual value risk is considered the main asset risk and is defined as the risk of a loss of value due to the changes in the price of vehicles on second-hand markets. The resale price of the vehicles is estimated at inception of the leasing contract. The actual resale price may differ from this estimated value, thus generating a gain or a loss. This risk is managed in the Group through robust internal procedures applied to all Group subsidiaries in order to set, control and reevaluate the residual values on the running fleet. The residual value setting procedure defines the processes, roles and responsibilities involved in the definition of residual values that will be used for the quotation of future contracts. Residual value setting is performed locally as the expertise in used car market is local and controlled and challenged centrally. The calculation is based on a refined market segmentation and on statistical models using internal used car sales data for each market segment as well as external references country specific factors (inflation, market sector adjustments, life cycle, etc.) and second-hand market forward-looking expectations.
Technical valuation and price setting of vehicles is directly overseen by the local Pricing Committees and the central Asset Risk Committees.
The Group is currently exposed to residual value risk of the total lease portfolio across 41\u00a0countries. This geographical diversification, in conjunction with being an independent multi-brand company with a well-diversified brand portfolio, partly mitigates the risk related to residual values.
\u00a0
The Group\u2019s residual value position in relation to the total operational lease assets can be illustrated as follows:
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Residual value | 33,133.4 | 32,828.8 |
\u00a0
Further details on the residual value risk management and fleet revaluation are disclosed in Note\u00a04.1.
Repair, Maintenance and Tyres (RMT) Risk is defined as the exposure to a potential loss due to repair, maintenance and tyres actual costs of the entire contractual period exceeding the technical estimated values at lease inception.
RMT costs setting is done locally using local historical statistics, under the supervision of the Group, in alignment with Group\u00b4s policies. A global review of the RMT technical costs is carried out for each country on a regular basis in order to back test RMT setting assumptions (in terms of costs and frequencies) and to make any necessary adjustments.
As a result of its normal business activities, the Group is exposed to motor insurance risks. Motor insurance risk is the risk of financial losses due to costs related to damages and compensation paid or payable. This risk consists of:
\u00a0
These two types of risk are managed by:
Ayvens subsidiaries may offer a warranty/service for damage to a vehicle as part of the lease contract if local regulation allows them to do so. This warranty/service is included in the monthly lease instalment which includes a contribution for bearing the risk (to pay the damage to the vehicles, short-tail risks). In addition to these short-tail risks, damage risks also consist of long-tail risks. These long-tail risks are managed by the Group\u2019s own insurance company in Dublin, Euro Insurances DAC trading as Ayvens Insurance, an insurance company operating under the freedom of services model in the EEA countries, through a fronting model (reinsurance) in some non-EEA countries and in the UK through a Third Country Branch.
Additionally, throughout the Group, there are a number of entities which hold mediation licences, to sell insurance products, as well as entities which also perform claim handling activities, in relation to insurance and risk retention claims.
Under the motor insurance governance policy, Ayvens has a robust and effective monitoring framework. This monitoring framework enables the entities to manage and monitor the insurance risk portfolio throughout their lifecycle, in line with agreed loss ratio targets, strategy, policies and
procedures at portfolio levels. Group entities measure and monitor their motor insurance risk on a quarterly basis and report their risk exposures to central management.
The Group accepts and offers lease contracts to clients at both fixed and floating interest rates, for various durations and in various currencies. Most lease contracts are on a fixed interest rate basis. Interest rate risk within the Group is managed separately for:
The main interest rate risk principle is to match the interest rate risk profile of the lease contract portfolio with a corresponding interest rate funding profile to minimise the interest rate risk as measured by interest rate gap reports per Group entity. Group entities carry interest-bearing assets on their balance sheet, funded by interest-bearing liabilities (loans and other indebtedness).
The Group central treasury monitors the Group\u2019s interest rate risk exposure and instructs subsidiaries to implement adequate hedging operations based on a monthly report measuring interest risk exposure. Each entity and the Group as a whole are subject to sensitivity thresholds and limits validated by the Asset and Liability Committee (ALCO). The Group structural risks are discussed on a quarterly basis during ALCO meetings.
For the Group, the sensitivity metric used is the variation in the net present value of the future residual fixed-rate positions (surplus or deficit) for non-stressed shocks of +10\u00a0bps and -10\u00a0bps in the yield curve. The table below reflects the balance sheet exposure of the Group\u2019s financial liabilities to interest rate risk:
\u00a0
NPV sensitivity impact (in EUR million)\u00a0(1) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
+10\u00a0bps | (2.7) | 0.7 |
-10\u00a0bps | 2.7 | (0.8) |
|
\u00a0
For a +10bps scenario, a positive NPV sensitivity represents an excess of fixed rate resources while a negative NPV sensitivity represents a deficit of fixed rate resources. The variation between 2023 and 2024 is mainly explained by the implementation of a new equity convention(1)\u00a0in compliance with Societe Generale Group standards. At the end of 2024, the NPV sensitivity is negative but within the limits. The position is mainly driven by the hedging of the order banks. See Note\u00a029 for further details.
The Group\u2019s functional currency and the reporting currency for its consolidated financial statements is the euro. However, because of its presence in a significant number of countries outside the Eurozone, the Group has substantial assets, liabilities, revenues and costs denominated in currencies other than the euro. The global nature of the Group\u2019s operations therefore exposes the Group to exchange rate volatility as a result of potential mismatches between the currencies in which assets and liabilities are denominated, and as a result of the translation effect on its reported earnings, cash flow and financial condition. The Group is exposed to transactional foreign exchange rate risk when a subsidiary enters into a transaction in a currency other than the subsidiary\u2019s functional currency. The Group seeks to manage its transactional foreign exchange rate risk by attempting to limit the Group\u2019s exposure to the effects of fluctuations in currencies on its statement of financial condition and cash flows through funding its debt directly or through derivatives in the currency in which assets are originated and allocating capital in the currencies in which assets are denominated.
In short, the Group has the following risk management approach regarding currency risk:
Based on the currency risk management approach the Group\u2019s capital adequacy ratio is minimally exposed to changes in the exchange rates it is exposed to. In order to monitor and manage its currency risk exposure, the Group has defined triggers and limits on its structural risk exposure, in accordance with EBA Guidelines.
The Group quantifies its exposure to structural exchange rate risks for each subsidiary by analysing all assets and liabilities arising from commercial operations and proprietary transactions. The risk sensitivity is measured by quantifying the impact of a variation of 10% of the exchange rate (hard currencies against local currency) and a threshold is defined for each subsidiary.
\u00a0
The following table shows the net currency position of foreign currencies which the Group is most exposed to as at 31\u00a0December 2024, and with all other variables remaining constant, the impact if the Euro strengthened or weakened by 10% against these foreign currencies positions held by the Group:
Income statement impact (in EUR million) | 2024 Net exposure | 2024 +10% | 2024 -10% |
|---|---|---|---|
Pound Sterling (GBP) | 561.4 | (51.0) | 62.4 |
Turkish Lira (TRY) | 712.0 | (64.7) | 79.1 |
Brazilian Real (BRL) | 184.1 | (16.7) | 20.5 |
Czech Koruna (CZK) | 110.3 | (10.0) | 12.3 |
Swedish Krona (SEK) | 126.2 | (11.5) | 14.0 |
Norwegian Krone (NOK) | 161.8 | (14.7) | 18.0 |
Danish Krone (DKK) | 201.8 | (18.3) | 22.4 |
Other\u00a0(1) | 631.4 | (51.6) | 63.1 |
|
\u00a0
Income statement impact (in EUR million) | 2023 Net exposure | 2023 +10% | 2023 -10% |
|---|---|---|---|
Pound Sterling (GBP) | 549.4 | (49.9) | 61.0 |
Turkish Lira (TRY) | 579.3 | (52.7) | 64.4 |
Brazilian Real (BRL) | 162.1 | (14.7) | 18.0 |
Czech Koruna (CZK) | 131.1 | (11.9) | 14.6 |
Swedish Krona (SEK) | 114.4 | (10.4) | 12.7 |
Norwegian Krone (NOK) | 114.0 | (10.4) | 12.7 |
Danish Krone (DKK) | 113.2 | (10.3) | 12.6 |
Other\u00a0(1) | 597.9 | (48.9) | 59.7 |
|
The Group is exposed to liquidity risk which is the risk of not being able to meet cash flow requirements when they fall due. A structural liquidity position is defined as resulting from the maturities of all balance sheet or off-balance sheet outstanding positions according to their liquidity profile.
The liquidity risk appetite and tolerance levels are based on the following key principles:
Note\u00a029 details the maturity of the Group borrowing and debt issued.
As a precaution to the risk of not having continued access to financial markets for funding, the Group maintains a liquidity buffer. This buffer includes unencumbered cash and committed (standby) credit facilities to reduce the Group\u2019s liquidity risk. The liquidity buffer as per 31\u00a0December is specified as follows:
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Unencumbered cash at banks | 119.7 | 146.1 |
Unencumbered cash at Central bank | 4,335.6 | 3,535.6 |
Total on balance liquidity buffer | 4,455.3 | 3,681.6 |
Committed undrawn facilities | 1,750.0 | 1,951.0 |
Total | 6,205.3 | 5,632.6 |
\u00a0
The Group holds total revolving credit facilities with a consortium of banks as at 31\u00a0December 2024, of which EUR\u00a01.75\u00a0billion is undrawn (31\u00a0December 2023: EUR\u00a01.95\u00a0billion). In addition, the Group holds a revolving credit facility with Societe Generale of which EUR\u00a03.8\u00a0billion was undrawn per 31\u00a0December 2024.
Ayvens\u00a0SA is a Financial Holding Company regulated by the European Central Bank (ECB). Ayvens Bank\u00a0NV, a subsidiary 100% owned by LeasePlan Group BV, which is 100% owned by Ayvens\u00a0SA is regulated as a financial institution. The European Central Bank sets out minimum liquidity level requirements on Ayvens Bank\u00a0NV demanding that available liquidity exceeds required liquidity at all times as well as a Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) above 100%. These minimum liquidity requirements are complied with.
Derivatives are used to mitigate the interest rate and currency exposures associated with the funding of lease contracts. Interest rate swaps cover interest rate positions between lease contracts and borrowed funds and currency interest rate swaps cover currency exposures between lease contracts and borrowed funds. The extent of exposure management is in line with internal risk appetite and limits determined by the Group risk management and reviewed on a regular basis. The Group uses a mixture of one-to-one relationships (micro hedging), as well as many-to-many macro hedging (macro hedging).
\u00a0
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Less than 1\u00a0year | 9,850.1 | 6,864.9 |
1-5\u00a0years | 11,995.1 | 12,923.8 |
Over 5\u00a0years | 1,501.7 | 1,699.7 |
Total borrowings | 23,346.9 | 21,488.4 |
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Less than 1\u00a0year | 4,243.2 | 1,975.6 |
1-5\u00a0years | 8,939.9 | 9,844.0 |
Over 5\u00a0years | 500.0 | 62.5 |
Total bonds | 13,683.0 | 11,882.1 |
\u00a0
The maturity of the asset-backed securitisation programmes is as follows:
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Less than 1\u00a0year | 1,491.7 | 1,385.4 |
1-5\u00a0years | 2,060.2 | 2,870.9 |
Total securitisation programme | 3,552.0 | 4,256.2 |
\u00a0
Refer to note 5.1 Financial risk factors, section Liquidity risk measurement, for an overview of the undrawn borrowing facilities.
", "dimensions": { "concept": "ifrs-full:DisclosureOfLiquidityRiskExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_13e5a070-1b6a-4fb3-8257-271cee02d706": { "value": "Based on the strategic planning process, a forecast of the regulatory Common Equity Tier\u00a01 (CET1), Tier\u00a01 (T1) and Total Capital (TC) ratios is prepared. The projections of the CET1, T1 and TC ratios are performed to ensure ongoing compliance with the minimum requirements set by the ECB. Next to the projections of the capital ratios, a forecast is made of the development of the minimum requirement which takes into account the requirements of the ECB; based on the latest estimates the Group will remain above the minimum CET1, T1 and TC requirement.
", "dimensions": { "concept": "ifrs-full:DisclosureOfObjectivesPoliciesAndProcessesForManagingCapitalExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_499584a2-ae3a-4e96-8f4d-9b5f5e4a432b": { "value": "During the reporting period, the Group implemented a new regional structure for its operating segments, which reflects a strategic alignment with its management structure following the acquisition and integration of LeasePlan. The Group has appointed a new leadership team where the members of the Executive Committee hold supervisory responsibilities in line with the new regional structure of four regions. The new regional segmentation corresponds to the updated management structure. To ensure consistency and enhance decision-making, the new regional segmentation has been implemented across the Group\u2019s budgeting and internal reporting processes. Supporting departments, such as finance and human resources, have been restructured to align with the regional segments, creating an uniform approach to operational support.
The new regional segmentation comprises 4 regions with the following countries per region:
The performance of the operating segments is assessed based on a measure of revenue and profit before tax as presented in the consolidated financial statements. None of the Group\u2019s customers represent more than 10% of the total revenue.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSegmentReportingExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_cce02d6d-3d10-4332-9c7f-0cc051555fb1": { "value": "(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Leasing revenue\u00a0\u2013 operating leases | 10,590.1 | 7,795.3 |
Interest income from finance lease | 124.7 | 89.4 |
Other interest income | 302.0 | 148.0 |
Leasing revenues | 11,016.8 | 8,032.6 |
Leasing costs\u00a0\u2013 depreciation | (8,085.7) | (6,171.0) |
Leasing costs\u00a0\u2013 financing: | \u00a0 | \u00a0 |
Interest charges on loans from financial institutions\u00a0(1) | (766.4) | (445.2) |
Interest charges on deposits | (381.1) | (169.0) |
Interest charges on issued bonds | (455.8) | (225.3) |
Other interest charges | (294.3) | (205.2) |
Total interest charges | (1,897.5) | (1,044.7) |
Leasing costs\u00a0\u2013 depreciation and financing | (9,983.2) | (7,215.7) |
Derivatives not in hedges | 45.5 | (152.0) |
Hedge ineffectiveness\u00a0\u2013 fair value hedges | (127.2) | (35.5) |
Hedge ineffectiveness\u00a0\u2013 cash flow hedges | 1.0 | 1.5 |
Unrealised gains/(losses) on derivative financial instruments | (80.6) | (186.0) |
Unrealised foreign exchange gains/(losses) | (3.6) | 4.5 |
Hyperinflation\u00a0\u2013 net monetary gain | 121.4 | 140.1 |
Total unrealised gains/(losses) on financial instruments and other | 37.1 | (41.4) |
Leasing margin | 1,070.7 | 775.5 |
|
\u201cLeasing costs \u2013 depreciation\u201d includes depreciation of vehicles which is calculated based on contractual residual values. Any impacts from the revision of residual values are recorded in the \u201cDepreciation adjustments\u201d in \u201cUsed car sales result and depreciation adjustments\u201d.
\u201cOther interest income\u201d comprises income received from financial instruments, income received for cash deposits with central banks and other third parties.
\u201cOther interest charges\u201d mainly comprise of interest charges incurred from asset-backed borrowings, net interest costs on derivative financial instruments, realised gains or losses on translation of financial liabilities and interest expense on lease liabilities.
Financial statements of the Turkish subsidiaries are based on a historic cost. Non-monetary items in the financial statements have been restated for the change in CPI (Consumer Price Index) from the date of their acquisition or initial recognition to the end of the reporting period.
Net monetary gain is derived as the difference resulting from the restatement of non-monetary assets, incomes and expenses at transaction date and the restatement of all components of equity from the beginning of the period.
Included within the \u201cLeasing costs\u201d, for hyperinflation in Turkey is an impairment of EUR\u00a061.5\u00a0million for year ending 31\u00a0December 2024 (2023: EUR\u00a067.2\u00a0million) relating to recoverability of the fleet assets and additional depreciation on the inflationary increase of EUR\u00a0121.3\u00a0million (2023: EUR\u00a033.7\u00a0million).
Total interest charges have increased significantly in the year ending 31\u00a0December 2024. \u201cInterest charge on loans from financial institutions\u201d has increased with the acquisition of LeasePlan in May\u00a02023, which has external funding arrangements and borrowing from central bank institutions as part of its banking operations. The new charge of \u201cInterest charges on deposits\u201d is also a result of interest paid on fixed term savings deposits, raised by Ayvens Bank in the Netherlands and in Germany. \u201cInterest charges on issued bonds\u201d has increased due to the issuance of new EMTN bonds in the year to finance the operations of the combined group, while the increase in \u201cOther interest charges\u201d are due to the additional asset-backed securitisation funding acquired on acquisition of LeasePlan. For more details of the funding changes from the acquisition of LeasePlan see Note\u00a029 Borrowing from financial institutions, Bonds and Notes issued.
The Group\u2019s activities are principally related to vehicle leasing and Fleet Management. The Group accepts and offers lease contracts to clients at both fixed and floating interest rates, for various periods and in various currencies. For a major part of the funding of the cars, the Group has entered into borrowings from external parties or issued notes to third parties. To mitigate the Group exposure towards future movements in interest rates and currency exchange rates the Group have entered into interest rate swaps and cross currency swap and forward arrangements. While as a result of these arrangements the Group mitigates interest rate risk and currency risk from an economic perspective, these derivatives do not always qualify for hedge accounting from an accounting perspective. The accounting treatment of derivative financial instruments exposes the Group to some volatility in its income statement. For more details see Note\u00a05 Financial Risk Management and Note\u00a019 Derivative financial instruments.
The \u201cHyperinflation \u2013 net monetary gain\u201d in the \u201cUnrealised gains/losses on financial instruments and other\u201d line in the income statement, includes the gain for the consumer price index inflation applied to the book value of the Turkish subsidiaries fleet of vehicles, share capital and retained earnings.
\u00a0
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceCostExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_0aae8ada-46fe-4bdb-8b7e-aed2cddcc4f3": { "value": "(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Leasing revenue\u00a0\u2013 operating leases | 10,590.1 | 7,795.3 |
Interest income from finance lease | 124.7 | 89.4 |
Other interest income | 302.0 | 148.0 |
Leasing revenues | 11,016.8 | 8,032.6 |
Leasing costs\u00a0\u2013 depreciation | (8,085.7) | (6,171.0) |
Leasing costs\u00a0\u2013 financing: | \u00a0 | \u00a0 |
Interest charges on loans from financial institutions\u00a0(1) | (766.4) | (445.2) |
Interest charges on deposits | (381.1) | (169.0) |
Interest charges on issued bonds | (455.8) | (225.3) |
Other interest charges | (294.3) | (205.2) |
Total interest charges | (1,897.5) | (1,044.7) |
Leasing costs\u00a0\u2013 depreciation and financing | (9,983.2) | (7,215.7) |
Derivatives not in hedges | 45.5 | (152.0) |
Hedge ineffectiveness\u00a0\u2013 fair value hedges | (127.2) | (35.5) |
Hedge ineffectiveness\u00a0\u2013 cash flow hedges | 1.0 | 1.5 |
Unrealised gains/(losses) on derivative financial instruments | (80.6) | (186.0) |
Unrealised foreign exchange gains/(losses) | (3.6) | 4.5 |
Hyperinflation\u00a0\u2013 net monetary gain | 121.4 | 140.1 |
Total unrealised gains/(losses) on financial instruments and other | 37.1 | (41.4) |
Leasing margin | 1,070.7 | 775.5 |
|
\u201cLeasing costs \u2013 depreciation\u201d includes depreciation of vehicles which is calculated based on contractual residual values. Any impacts from the revision of residual values are recorded in the \u201cDepreciation adjustments\u201d in \u201cUsed car sales result and depreciation adjustments\u201d.
\u201cOther interest income\u201d comprises income received from financial instruments, income received for cash deposits with central banks and other third parties.
\u201cOther interest charges\u201d mainly comprise of interest charges incurred from asset-backed borrowings, net interest costs on derivative financial instruments, realised gains or losses on translation of financial liabilities and interest expense on lease liabilities.
Financial statements of the Turkish subsidiaries are based on a historic cost. Non-monetary items in the financial statements have been restated for the change in CPI (Consumer Price Index) from the date of their acquisition or initial recognition to the end of the reporting period.
Net monetary gain is derived as the difference resulting from the restatement of non-monetary assets, incomes and expenses at transaction date and the restatement of all components of equity from the beginning of the period.
Included within the \u201cLeasing costs\u201d, for hyperinflation in Turkey is an impairment of EUR\u00a061.5\u00a0million for year ending 31\u00a0December 2024 (2023: EUR\u00a067.2\u00a0million) relating to recoverability of the fleet assets and additional depreciation on the inflationary increase of EUR\u00a0121.3\u00a0million (2023: EUR\u00a033.7\u00a0million).
Total interest charges have increased significantly in the year ending 31\u00a0December 2024. \u201cInterest charge on loans from financial institutions\u201d has increased with the acquisition of LeasePlan in May\u00a02023, which has external funding arrangements and borrowing from central bank institutions as part of its banking operations. The new charge of \u201cInterest charges on deposits\u201d is also a result of interest paid on fixed term savings deposits, raised by Ayvens Bank in the Netherlands and in Germany. \u201cInterest charges on issued bonds\u201d has increased due to the issuance of new EMTN bonds in the year to finance the operations of the combined group, while the increase in \u201cOther interest charges\u201d are due to the additional asset-backed securitisation funding acquired on acquisition of LeasePlan. For more details of the funding changes from the acquisition of LeasePlan see Note\u00a029 Borrowing from financial institutions, Bonds and Notes issued.
The Group\u2019s activities are principally related to vehicle leasing and Fleet Management. The Group accepts and offers lease contracts to clients at both fixed and floating interest rates, for various periods and in various currencies. For a major part of the funding of the cars, the Group has entered into borrowings from external parties or issued notes to third parties. To mitigate the Group exposure towards future movements in interest rates and currency exchange rates the Group have entered into interest rate swaps and cross currency swap and forward arrangements. While as a result of these arrangements the Group mitigates interest rate risk and currency risk from an economic perspective, these derivatives do not always qualify for hedge accounting from an accounting perspective. The accounting treatment of derivative financial instruments exposes the Group to some volatility in its income statement. For more details see Note\u00a05 Financial Risk Management and Note\u00a019 Derivative financial instruments.
The \u201cHyperinflation \u2013 net monetary gain\u201d in the \u201cUnrealised gains/losses on financial instruments and other\u201d line in the income statement, includes the gain for the consumer price index inflation applied to the book value of the Turkish subsidiaries fleet of vehicles, share capital and retained earnings.
\u00a0
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceIncomeExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_2be28d8a-514e-42ed-bdc2-b3fcd1f8d9c7": { "value": "(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Leasing revenue\u00a0\u2013 operating leases | 10,590.1 | 7,795.3 |
Interest income from finance lease | 124.7 | 89.4 |
Other interest income | 302.0 | 148.0 |
Leasing revenues | 11,016.8 | 8,032.6 |
Leasing costs\u00a0\u2013 depreciation | (8,085.7) | (6,171.0) |
Leasing costs\u00a0\u2013 financing: | \u00a0 | \u00a0 |
Interest charges on loans from financial institutions\u00a0(1) | (766.4) | (445.2) |
Interest charges on deposits | (381.1) | (169.0) |
Interest charges on issued bonds | (455.8) | (225.3) |
Other interest charges | (294.3) | (205.2) |
Total interest charges | (1,897.5) | (1,044.7) |
Leasing costs\u00a0\u2013 depreciation and financing | (9,983.2) | (7,215.7) |
Derivatives not in hedges | 45.5 | (152.0) |
Hedge ineffectiveness\u00a0\u2013 fair value hedges | (127.2) | (35.5) |
Hedge ineffectiveness\u00a0\u2013 cash flow hedges | 1.0 | 1.5 |
Unrealised gains/(losses) on derivative financial instruments | (80.6) | (186.0) |
Unrealised foreign exchange gains/(losses) | (3.6) | 4.5 |
Hyperinflation\u00a0\u2013 net monetary gain | 121.4 | 140.1 |
Total unrealised gains/(losses) on financial instruments and other | 37.1 | (41.4) |
Leasing margin | 1,070.7 | 775.5 |
|
\u201cLeasing costs \u2013 depreciation\u201d includes depreciation of vehicles which is calculated based on contractual residual values. Any impacts from the revision of residual values are recorded in the \u201cDepreciation adjustments\u201d in \u201cUsed car sales result and depreciation adjustments\u201d.
\u201cOther interest income\u201d comprises income received from financial instruments, income received for cash deposits with central banks and other third parties.
\u201cOther interest charges\u201d mainly comprise of interest charges incurred from asset-backed borrowings, net interest costs on derivative financial instruments, realised gains or losses on translation of financial liabilities and interest expense on lease liabilities.
Financial statements of the Turkish subsidiaries are based on a historic cost. Non-monetary items in the financial statements have been restated for the change in CPI (Consumer Price Index) from the date of their acquisition or initial recognition to the end of the reporting period.
Net monetary gain is derived as the difference resulting from the restatement of non-monetary assets, incomes and expenses at transaction date and the restatement of all components of equity from the beginning of the period.
Included within the \u201cLeasing costs\u201d, for hyperinflation in Turkey is an impairment of EUR\u00a061.5\u00a0million for year ending 31\u00a0December 2024 (2023: EUR\u00a067.2\u00a0million) relating to recoverability of the fleet assets and additional depreciation on the inflationary increase of EUR\u00a0121.3\u00a0million (2023: EUR\u00a033.7\u00a0million).
Total interest charges have increased significantly in the year ending 31\u00a0December 2024. \u201cInterest charge on loans from financial institutions\u201d has increased with the acquisition of LeasePlan in May\u00a02023, which has external funding arrangements and borrowing from central bank institutions as part of its banking operations. The new charge of \u201cInterest charges on deposits\u201d is also a result of interest paid on fixed term savings deposits, raised by Ayvens Bank in the Netherlands and in Germany. \u201cInterest charges on issued bonds\u201d has increased due to the issuance of new EMTN bonds in the year to finance the operations of the combined group, while the increase in \u201cOther interest charges\u201d are due to the additional asset-backed securitisation funding acquired on acquisition of LeasePlan. For more details of the funding changes from the acquisition of LeasePlan see Note\u00a029 Borrowing from financial institutions, Bonds and Notes issued.
The Group\u2019s activities are principally related to vehicle leasing and Fleet Management. The Group accepts and offers lease contracts to clients at both fixed and floating interest rates, for various periods and in various currencies. For a major part of the funding of the cars, the Group has entered into borrowings from external parties or issued notes to third parties. To mitigate the Group exposure towards future movements in interest rates and currency exchange rates the Group have entered into interest rate swaps and cross currency swap and forward arrangements. While as a result of these arrangements the Group mitigates interest rate risk and currency risk from an economic perspective, these derivatives do not always qualify for hedge accounting from an accounting perspective. The accounting treatment of derivative financial instruments exposes the Group to some volatility in its income statement. For more details see Note\u00a05 Financial Risk Management and Note\u00a019 Derivative financial instruments.
The \u201cHyperinflation \u2013 net monetary gain\u201d in the \u201cUnrealised gains/losses on financial instruments and other\u201d line in the income statement, includes the gain for the consumer price index inflation applied to the book value of the Turkish subsidiaries fleet of vehicles, share capital and retained earnings.
\u00a0
", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestIncomeExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_5df8a381-84ea-4a95-b553-263ed3438739": { "value": "(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Leasing revenue\u00a0\u2013 operating leases | 10,590.1 | 7,795.3 |
Interest income from finance lease | 124.7 | 89.4 |
Other interest income | 302.0 | 148.0 |
Leasing revenues | 11,016.8 | 8,032.6 |
Leasing costs\u00a0\u2013 depreciation | (8,085.7) | (6,171.0) |
Leasing costs\u00a0\u2013 financing: | \u00a0 | \u00a0 |
Interest charges on loans from financial institutions\u00a0(1) | (766.4) | (445.2) |
Interest charges on deposits | (381.1) | (169.0) |
Interest charges on issued bonds | (455.8) | (225.3) |
Other interest charges | (294.3) | (205.2) |
Total interest charges | (1,897.5) | (1,044.7) |
Leasing costs\u00a0\u2013 depreciation and financing | (9,983.2) | (7,215.7) |
Derivatives not in hedges | 45.5 | (152.0) |
Hedge ineffectiveness\u00a0\u2013 fair value hedges | (127.2) | (35.5) |
Hedge ineffectiveness\u00a0\u2013 cash flow hedges | 1.0 | 1.5 |
Unrealised gains/(losses) on derivative financial instruments | (80.6) | (186.0) |
Unrealised foreign exchange gains/(losses) | (3.6) | 4.5 |
Hyperinflation\u00a0\u2013 net monetary gain | 121.4 | 140.1 |
Total unrealised gains/(losses) on financial instruments and other | 37.1 | (41.4) |
Leasing margin | 1,070.7 | 775.5 |
|
\u201cLeasing costs \u2013 depreciation\u201d includes depreciation of vehicles which is calculated based on contractual residual values. Any impacts from the revision of residual values are recorded in the \u201cDepreciation adjustments\u201d in \u201cUsed car sales result and depreciation adjustments\u201d.
\u201cOther interest income\u201d comprises income received from financial instruments, income received for cash deposits with central banks and other third parties.
\u201cOther interest charges\u201d mainly comprise of interest charges incurred from asset-backed borrowings, net interest costs on derivative financial instruments, realised gains or losses on translation of financial liabilities and interest expense on lease liabilities.
Financial statements of the Turkish subsidiaries are based on a historic cost. Non-monetary items in the financial statements have been restated for the change in CPI (Consumer Price Index) from the date of their acquisition or initial recognition to the end of the reporting period.
Net monetary gain is derived as the difference resulting from the restatement of non-monetary assets, incomes and expenses at transaction date and the restatement of all components of equity from the beginning of the period.
Included within the \u201cLeasing costs\u201d, for hyperinflation in Turkey is an impairment of EUR\u00a061.5\u00a0million for year ending 31\u00a0December 2024 (2023: EUR\u00a067.2\u00a0million) relating to recoverability of the fleet assets and additional depreciation on the inflationary increase of EUR\u00a0121.3\u00a0million (2023: EUR\u00a033.7\u00a0million).
Total interest charges have increased significantly in the year ending 31\u00a0December 2024. \u201cInterest charge on loans from financial institutions\u201d has increased with the acquisition of LeasePlan in May\u00a02023, which has external funding arrangements and borrowing from central bank institutions as part of its banking operations. The new charge of \u201cInterest charges on deposits\u201d is also a result of interest paid on fixed term savings deposits, raised by Ayvens Bank in the Netherlands and in Germany. \u201cInterest charges on issued bonds\u201d has increased due to the issuance of new EMTN bonds in the year to finance the operations of the combined group, while the increase in \u201cOther interest charges\u201d are due to the additional asset-backed securitisation funding acquired on acquisition of LeasePlan. For more details of the funding changes from the acquisition of LeasePlan see Note\u00a029 Borrowing from financial institutions, Bonds and Notes issued.
The Group\u2019s activities are principally related to vehicle leasing and Fleet Management. The Group accepts and offers lease contracts to clients at both fixed and floating interest rates, for various periods and in various currencies. For a major part of the funding of the cars, the Group has entered into borrowings from external parties or issued notes to third parties. To mitigate the Group exposure towards future movements in interest rates and currency exchange rates the Group have entered into interest rate swaps and cross currency swap and forward arrangements. While as a result of these arrangements the Group mitigates interest rate risk and currency risk from an economic perspective, these derivatives do not always qualify for hedge accounting from an accounting perspective. The accounting treatment of derivative financial instruments exposes the Group to some volatility in its income statement. For more details see Note\u00a05 Financial Risk Management and Note\u00a019 Derivative financial instruments.
The \u201cHyperinflation \u2013 net monetary gain\u201d in the \u201cUnrealised gains/losses on financial instruments and other\u201d line in the income statement, includes the gain for the consumer price index inflation applied to the book value of the Turkish subsidiaries fleet of vehicles, share capital and retained earnings.
\u00a0
", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestExpenseExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_5466c798-d6af-4e45-931b-36d1639c342d": { "value": "Services margin for the year ended 31\u00a0December 2024 includes an amount of EUR\u00a0114.1\u00a0million (2023: EUR\u00a089.8\u00a0million) related to insurance and reinsurance services. Refer to the following table for the breakdown:", "dimensions": { "concept": "ifrs-full:DisclosureOfInsurancePremiumRevenueExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_0c1d1cc9-798b-4605-b3a5-7013e504b117": { "value": "\u00a0
The breakdown of staff expenses is as follows:
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Wages and salaries | (882.8) | (659.3) |
Social security charges | (163.3) | (120.8) |
Defined benefit post-employment costs | (7.5) | (4.3) |
Other staff costs | (126.9) | (151.7) |
Total | (1,180.5) | (936.1) |
\u00a0
The average number of staff employed (including temporary staff) by the Group during the year was 14,455 (2023: 12,505). At year-end, the full time equivalent number of staff employed by the Group was 12,661 (2023: 14,578).
The breakdown of the components of the defined benefit pension cost is identified in Note\u00a031.
\u00a0
\u00a0
The breakdown of general and administrative expenses is as follows:
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Professional services expenses | (167.6) | (210.6) |
Facilities | (239.1) | (176.3) |
Marketing and sales | (41.5) | (34.8) |
Other general and administrative expenses | (98.2) | (97.7) |
Total | (546.3) | (519.5) |
\u00a0
As part of General and administrative expenses are included fees, rental charges, IT services, maintenance and equipment expenses and expenses related to advertising and communication.
\u00a0
(in EUR million) | Notes | Year ended 31\u00a0December, | |
|---|---|---|---|
2024 | 2023 | ||
Depreciation of other property and equipment | 14 | (41.1) | (34.7) |
Depreciation of intangible assets | 17 | (80.7) | (59.3) |
Depreciation of right of use assets\u00a0(1) | 15 | (50.7) | (42.0) |
Total | \u00a0 | (172.5) | (136.0) |
|
\u00a0
Ayvens continues to invest in IT as part of the Group\u2019s commitment to be the preferred choice for mobility solutions within the market. There has been a specific focus on digital solutions to further enhance customer experience, including fleet manager and driver web portals as well as investment in the development of new Flexible products for customers.
", "dimensions": { "concept": "ifrs-full:DisclosureOfExpensesByNatureExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_15e12a6c-e4de-4aa2-80fe-57b100993f62": { "value": "The average number of staff employed (including temporary staff) by the Group during the year was 14,455 (2023: 12,505). At year-end, the full time equivalent number of staff employed by the Group was 12,661 (2023: 14,578).", "dimensions": { "concept": "ifrs-full:DisclosureOfInformationAboutEmployeesExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_ecf74894-17c9-4880-bd0d-e92aecad1c31": { "value": "\u00a0
The breakdown of general and administrative expenses is as follows:
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Professional services expenses | (167.6) | (210.6) |
Facilities | (239.1) | (176.3) |
Marketing and sales | (41.5) | (34.8) |
Other general and administrative expenses | (98.2) | (97.7) |
Total | (546.3) | (519.5) |
\u00a0
As part of General and administrative expenses are included fees, rental charges, IT services, maintenance and equipment expenses and expenses related to advertising and communication.
", "dimensions": { "concept": "ifrs-full:DisclosureOfGeneralAndAdministrativeExpenseExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_b65d1af1-32f8-4250-9fae-fe8386994cb3": { "value": "\u00a0
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
FV gain/(loss) on the investment in equity instruments | (2.2) | 10.9 |
Dividend income from equity instruments | \u2212 | 0.9 |
Impairment of goodwill | \u2212 | (38.4) |
Gain on sale of subsidiaries | 4.8 | \u2212 |
Other income/(expenses) | (4.8) | (2.1) |
Total | (2.2) | (28.7) |
\u00a0
This caption includes the fair value adjustment on the investment in equity instruments related to Societe Generale Fleet Group and Constellation Group, the dividend income from these investments and the impairment of goodwill (see Note\u00a016 for further details).
During 2024 the LeasePlan Russia subsidiary was sold, generating a gain on sale in total amount of EUR\u00a04.8\u00a0million.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExpenseExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_fe67ea73-9395-45c9-8d62-fe54f1fd264c": { "value": "\u00a0
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
FV gain/(loss) on the investment in equity instruments | (2.2) | 10.9 |
Dividend income from equity instruments | \u2212 | 0.9 |
Impairment of goodwill | \u2212 | (38.4) |
Gain on sale of subsidiaries | 4.8 | \u2212 |
Other income/(expenses) | (4.8) | (2.1) |
Total | (2.2) | (28.7) |
\u00a0
This caption includes the fair value adjustment on the investment in equity instruments related to Societe Generale Fleet Group and Constellation Group, the dividend income from these investments and the impairment of goodwill (see Note\u00a016 for further details).
During 2024 the LeasePlan Russia subsidiary was sold, generating a gain on sale in total amount of EUR\u00a04.8\u00a0million.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_a02b8c0d-3787-4105-a230-441657eef52f": { "value": "\u00a0
(in EUR million) | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
FV gain/(loss) on the investment in equity instruments | (2.2) | 10.9 |
Dividend income from equity instruments | \u2212 | 0.9 |
Impairment of goodwill | \u2212 | (38.4) |
Gain on sale of subsidiaries | 4.8 | \u2212 |
Other income/(expenses) | (4.8) | (2.1) |
Total | (2.2) | (28.7) |
\u00a0
This caption includes the fair value adjustment on the investment in equity instruments related to Societe Generale Fleet Group and Constellation Group, the dividend income from these investments and the impairment of goodwill (see Note\u00a016 for further details).
During 2024 the LeasePlan Russia subsidiary was sold, generating a gain on sale in total amount of EUR\u00a04.8\u00a0million.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingExpenseExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_c7551e03-dc85-4ae6-aa5d-6c733baf3ee7": { "value": "(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Investment in debt securities | 405.9 | 329.4 |
Investment in equity securities | 19.4 | 35.0 |
Long-term investments | 125.6 | 223.5 |
Guarantee deposits | 272.8 | 414.5 |
Other | 13.8 | 8.8 |
Total | 837.5 | 1,011.2 |
Current portion | 358.8 | 766.5 |
Non-current portion | 478.8 | 244.7 |
\u00a0
Investment in debt securities includes bonds and notes held at fair value (through profit and loss or other comprehensive income) and bonds and notes held at amortised cost.
Investment in equity securities includes the interest in Constellation Automotive Holdings S.a.r.l. Refer to Note\u00a026 Financial Instruments for more information on the method of valuation and related assumptions. No impairment or expected credit loss has been booked for the period ending 31\u00a0December 2024 and 2023.
Long-term investments are a resource resulting from the policy of the Group and of its main shareholder, Societe Generale, to monitor the Group\u2019s interest rate risk through the matching of assets and liabilities by maturity. Available equity is considered as a long-term resource which needs to be matched with long-term assets (refer to interest rate risks management in financial risk management section above). Equity reinvestments are made in long term amortising deposits within Societe Generale in order to remain within the interest rate sensitivity limit set for each entity (variation in the net present value of the future residual fixed rate positions, surplus or deficit, for a 1% parallel increase in the yield curve). These deposits will roll-out in approximately 2\u00a0years\u2019 time and will not be renewed.
The guarantee deposits mainly include:
\u00a0
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
VAT and other taxes | 786.5 | 852.8 |
Prepaid motor vehicle tax and insurance premiums | 253.0 | 236.2 |
Reclaimable damages | 23.1 | 16.3 |
Prepaid expenses and accrued income | 749.3 | 645.0 |
Reinsurance contract assets\u00a0(1) | 51.1 | 52.3 |
Insurance contract assets\u00a0(1) | \u2212 | 0.8 |
Rebates from dealers and manufacturers | 640.6 | 612.3 |
Other | 658.7 | 535.3 |
Total | 3,162.3 | 2,951.0 |
|
\u00a0
Balances written-off from other receivables were not significant for the year ending 31\u00a0December 2024 and 2023.
The Expected Credit Losses for Rebates and bonuses and commission receivable, Reclaimable damages, Reinsurance assets and Insurance Contract assets amount to EUR\u00a01.3\u00a0million (2023: EUR\u00a07.6\u00a0million). These credit losses are based on observable events during the period.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherAssetsExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_721b39d7-934f-442b-8b7d-7d1ac62d370c": { "value": "(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Investment in debt securities | 405.9 | 329.4 |
Investment in equity securities | 19.4 | 35.0 |
Long-term investments | 125.6 | 223.5 |
Guarantee deposits | 272.8 | 414.5 |
Other | 13.8 | 8.8 |
Total | 837.5 | 1,011.2 |
Current portion | 358.8 | 766.5 |
Non-current portion | 478.8 | 244.7 |
\u00a0
Investment in debt securities includes bonds and notes held at fair value (through profit and loss or other comprehensive income) and bonds and notes held at amortised cost.
Investment in equity securities includes the interest in Constellation Automotive Holdings S.a.r.l. Refer to Note\u00a026 Financial Instruments for more information on the method of valuation and related assumptions. No impairment or expected credit loss has been booked for the period ending 31\u00a0December 2024 and 2023.
Long-term investments are a resource resulting from the policy of the Group and of its main shareholder, Societe Generale, to monitor the Group\u2019s interest rate risk through the matching of assets and liabilities by maturity. Available equity is considered as a long-term resource which needs to be matched with long-term assets (refer to interest rate risks management in financial risk management section above). Equity reinvestments are made in long term amortising deposits within Societe Generale in order to remain within the interest rate sensitivity limit set for each entity (variation in the net present value of the future residual fixed rate positions, surplus or deficit, for a 1% parallel increase in the yield curve). These deposits will roll-out in approximately 2\u00a0years\u2019 time and will not be renewed.
The guarantee deposits mainly include:
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Investment in debt securities | 405.9 | 329.4 |
Investment in equity securities | 19.4 | 35.0 |
Long-term investments | 125.6 | 223.5 |
Guarantee deposits | 272.8 | 414.5 |
Other | 13.8 | 8.8 |
Total | 837.5 | 1,011.2 |
Current portion | 358.8 | 766.5 |
Non-current portion | 478.8 | 244.7 |
\u00a0
Investment in debt securities includes bonds and notes held at fair value (through profit and loss or other comprehensive income) and bonds and notes held at amortised cost.
Investment in equity securities includes the interest in Constellation Automotive Holdings S.a.r.l. Refer to Note\u00a026 Financial Instruments for more information on the method of valuation and related assumptions. No impairment or expected credit loss has been booked for the period ending 31\u00a0December 2024 and 2023.
Long-term investments are a resource resulting from the policy of the Group and of its main shareholder, Societe Generale, to monitor the Group\u2019s interest rate risk through the matching of assets and liabilities by maturity. Available equity is considered as a long-term resource which needs to be matched with long-term assets (refer to interest rate risks management in financial risk management section above). Equity reinvestments are made in long term amortising deposits within Societe Generale in order to remain within the interest rate sensitivity limit set for each entity (variation in the net present value of the future residual fixed rate positions, surplus or deficit, for a 1% parallel increase in the yield curve). These deposits will roll-out in approximately 2\u00a0years\u2019 time and will not be renewed.
The guarantee deposits mainly include:
\u00a0
Securitisation programmes involve the sale of future lease instalment receivables and, in some cases, related residual value receivables originated by various Group\u00a0subsidiaries\u00a0to special purpose companies which are included in the consolidated financial statements of the Group. Debt securities were issued by these special purpose companies to finance these transactions. The special purpose companies are responsible for making interest and principal payments to the note holders. The Group continues to retain substantially all of the risks and rewards of the lease receivables as in all asset-backed securitisation programmes they subscribed to the first class of notes which will result in the Group bearing any realised losses. Therefore, the Group continues to recognise the transferred lease assets in their entirety.
(in EUR million) | Receivables from clients (finance and operating leases) | Cash collateral | Total |
|---|---|---|---|
At 31\u00a0December 2024 | \u00a0 | \u00a0 | \u00a0 |
Carrying amount of transferred assets | 4,648.0 | 66.7 | 4,714.7 |
Carrying amount of associated liabilities\u00a0(1) | \u00a0 | \u00a0 | (3,552.0) |
Net carrying amount position | \u00a0 | \u00a0 | 1,162.7 |
Fair value of transferred assets | 5,006.6 | 66.7 | 5,073.3 |
Fair value of associated liabilities\u00a0(1) | \u00a0 | \u00a0 | (3,552.0) |
Net fair value position as at 31\u00a0December 2024 | \u00a0 | \u00a0 | 1,521.3 |
At 31\u00a0December 2023 | \u00a0 | \u00a0 | \u00a0 |
Carrying amount of transferred assets | 6,061.8 | 69.3 | 6,131.1 |
Carrying amount of associated liabilities\u00a0(1) | \u00a0 | \u00a0 | (4,256.2) |
Net carrying amount position | \u00a0 | \u00a0 | 1,874.9 |
Fair value of transferred assets | 6,286.3 | 69.3 | 6,355.6 |
Fair value of associated liabilities\u00a0(1) | \u00a0 | \u00a0 | (4,256.2) |
Net fair value position as at 31\u00a0December 2023 | \u00a0 | \u00a0 | 2,099.4 |
|
\u00a0
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Amounts receivable from credit institutions | 583.6 | 545.0 |
Loans and receivables from related parties | 4,811.5 | 2,504.5 |
Loans to joint ventures and associates | \u2212 | 41.6 |
Other\u00a0(1) | 22.6 | 12.3 |
Total | 5,417.7 | 3,103.4 |
|
\u00a0
These financial assets are all recorded at amortised cost and only held with financial institutions that have an investment grade credit rating. Receivables from credit institutions include amounts from commercial banks with fixed or determinable payments. Loans and receivables from related parties are those due from Societe Generale and inter-group in nature. As such the low-risk exemption has been applied or out of scope where inter-group in nature and no expected credit loss has been applied to these balances.
For loans to joint ventures and associates refer to Note\u00a018 that provides the movement analysis.
", "dimensions": { "concept": "ifrs-full:DisclosureOfLoansAndAdvancesToBanksExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_02a15df1-8d4f-43b7-b392-6746c9466bc9": { "value": "\u00a0
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
VAT and other taxes | 786.5 | 852.8 |
Prepaid motor vehicle tax and insurance premiums | 253.0 | 236.2 |
Reclaimable damages | 23.1 | 16.3 |
Prepaid expenses and accrued income | 749.3 | 645.0 |
Reinsurance contract assets\u00a0(1) | 51.1 | 52.3 |
Insurance contract assets\u00a0(1) | \u2212 | 0.8 |
Rebates from dealers and manufacturers | 640.6 | 612.3 |
Other | 658.7 | 535.3 |
Total | 3,162.3 | 2,951.0 |
|
\u00a0
Balances written-off from other receivables were not significant for the year ending 31\u00a0December 2024 and 2023.
The Expected Credit Losses for Rebates and bonuses and commission receivable, Reclaimable damages, Reinsurance assets and Insurance Contract assets amount to EUR\u00a01.3\u00a0million (2023: EUR\u00a07.6\u00a0million). These credit losses are based on observable events during the period.
", "dimensions": { "concept": "ifrs-full:DisclosureOfPrepaymentsAndOtherAssetsExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_b660c379-ef0e-4235-8de9-3dd65bd32fec": { "value": "(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Cash and balances at central banks | 4,335.6 | 3,535.6 |
Cash at bank and on hand | 640.4 | 370.8 |
Short-term bank deposits | 47.0 | 90.6 |
Cash and cash equivalents excl. bank overdrafts | 5,023.0 | 3,997.0 |
Bank overdrafts | (567.6) | (315.3) |
Balance as at for the purpose of the statement of cash flows | 4,455.3 | 3,681.6 |
Mandatory reserve deposits | 122.0 | 107.3 |
\u00a0
All cash and balances at central banks are available at call except for the mandatory reserve deposits at the Dutch Central Bank. These reserve cash deposits are the so-called minimum reserves required to be held with respective national banks for successive periods of four to five weeks as part of the monetary policy of the European Central Bank. Thanks to cash reserve requirements, banks depend on the European Central Bank\u2019s liquidity\u2011providing mechanism for their liquidity needs.\u00a0The mandatory reserve deposits form part of \u201cCash and balances at central banks\u201d.
As the Group operates its own insurance and re-insurance program, the cash balance includes funds required for this business.
The average interest rate on the outstanding cash and balances at central banks is 2.8% (2023: 3.8%).
Cash and cash equivalent amounts are only held with financial institutions that have an investment grade credit rating, so the low-risk exemption has been applied and no expected credit loss has been applied to these balances.
The Group has pledged part of its short-term deposits to fulfil collateral requirements. Refer to Note\u00a029 for further details.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCashAndBankBalancesAtCentralBanksExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_a8ca4583-6c80-4b7c-9bfc-86d2459c78b1": { "value": "The mandatory reserve deposits form part of \u201cCash and balances at central banks\u201d.", "dimensions": { "concept": "ifrs-full:DisclosureOfRestrictedCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_8e85238a-dbe7-4c2c-b1f0-2db53343836b": { "value": "\u00a0
For financial assets and liabilities which are traded on an active market, such as listed investments or listed debt instruments, fair value is determined by reference to market value. For non-traded financial assets and liabilities, fair value is calculated using discounted cash flows, considered to be reasonable and consistent with those that would be used by a market participant, and based on observable market data where available (for example forward exchange rate or interest rate), unless carrying value is considered to approximate fair value.
Where discounted cash flow models based on management\u2019s assumptions are used, the resulting fair value measurements are considered to be at level\u00a03 in the fair value hierarchy, as defined in IFRS\u00a013 Fair Value Measurement, as they depend to a significant extent on unobservable valuation inputs.
All derivatives that have been designated into hedge relationships have been separately disclosed.
The Company\u2019s financial assets and liabilities are categorised as below. Where the financial instrument does not include fair value information, it is due to the carrying amount being a reasonable approximation of fair value.
\u00a0
As at 31\u00a0December 2024 (in EUR million) | Fair Value | ||||
|---|---|---|---|---|---|
Carrying Value | Level\u00a01 | Level\u00a02 | Level\u00a03 | Total | |
Financial assets measured at FVTPL | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Derivative financial instruments in hedge | 54.3 | \u00a0 | 54.3 | \u00a0 | 54.3 |
Derivative financial instruments not in hedge | 79.2 | \u00a0 | 79.2 | \u00a0 | 79.2 |
Investment in equity securities | 19.4 | \u00a0 | \u00a0 | 19.4 | 19.4 |
Investment in debt securities | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u2212 |
Financial assets measured at FVOCI | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Investment in debt securities | 309.2 | 309.2 | \u00a0 | \u00a0 | 309.2 |
Financial assets measured at amortised cost | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cash and cash equivalents | 5,023.0 | \u00a0 | \u00a0 | \u00a0 | \u2212 |
Investment in debt securities | 96.8 | 97.2 | \u00a0 | \u00a0 | 97.2 |
Other financial instruments | 257.7 | \u00a0 | \u00a0 | \u00a0 | \u2212 |
Lease receivables from customers | 4,083.6 | \u00a0 | 4,083.6 | \u00a0 | 4,083.6 |
Total | 9,923.2 | 406.4 | 4,217.1 | 19.4 | 4,642.9 |
As at 31\u00a0December 2023 (in EUR million) | Fair Value | ||||
|---|---|---|---|---|---|
Carrying Value | Level\u00a01 | Level\u00a02 | Level\u00a03 | Total | |
Financial assets measured at FVTPL | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Derivative financial instruments in hedge | 26.7 | \u00a0 | 26.7 | \u00a0 | 26.7 |
Derivative financial instruments not in hedge | 356.5 | \u00a0 | 356.5 | \u00a0 | 356.5 |
Investment in equity securities | 35.0 | 19.6 | \u00a0 | 15.4 | 35.0 |
Financial assets measured at FVOCI | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Investment in debt securities | 245.5 | 245.5 | \u00a0 | \u00a0 | 245.5 |
Financial assets measured at amortised cost | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cash and cash equivalents | 3,997.0 | \u00a0 | \u00a0 | \u00a0 | \u2212 |
Investment in debt securities | 83.9 | 83.9 | \u00a0 | \u00a0 | 83.9 |
Other financial instruments | 646.8 | \u00a0 | \u00a0 | \u00a0 | \u2212 |
Lease receivables from customers | 4,530.7 | \u00a0 | 4,530.7 | \u2212 | 4,530.7 |
Receivables from credit and other institutions | 3,103.4 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Loans to associates and jointly controlled entities | 41.5 | \u00a0 | 41.5 | \u00a0 | 41.5 |
Total | 13,067.0 | 349.0 | 4,955.5 | 15.4 | 5,319.9 |
\u00a0
As at 31\u00a0December 2024 (in EUR million) | Fair Value | ||||
|---|---|---|---|---|---|
Carrying Value | Level\u00a01 | Level\u00a02 | Level\u00a03 | Total | |
Financial liabilities measured at FVTPL | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Derivative financial instruments in hedge | 30.9 | \u00a0 | 30.9 | \u00a0 | 30.9 |
Derivative financial instruments not in hedge | 228.5 | \u00a0 | 228.5 | \u00a0 | 228.5 |
Financial liabilities measured at amortised cost | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Trade payables | 6,024.5 | \u00a0 | 6,024.5 | \u2212 | 6,024.5 |
Deposits | 13,890.6 | \u00a0 | 13,842.6 | \u00a0 | 13,842.6 |
Borrowings from financial institutions | 23,346.9 | \u00a0 | 23,381.8 | \u2212 | 23,381.8 |
Bonds issued | 17,235.0 | 15,621.0 | 1,712.5 | \u2212 | 17,333.5 |
Total | 60,756.3 | 15,621.0 | 45,220.7 | \u2212 | 60,841.8 |
\u00a0
As at 31\u00a0December 2023 (in EUR million) | Fair Value | ||||
|---|---|---|---|---|---|
Carrying Value | Level\u00a01 | Level\u00a02 | Level\u00a03 | Total | |
Financial liabilities measured at FVTPL | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Derivative financial instruments in hedge | 103.4 | \u00a0 | 103.4 | \u00a0 | 103.4 |
Derivative financial instruments not in hedge | 542.4 | \u00a0 | 542.4 | \u00a0 | 542.4 |
Financial liabilities measured at amortised cost | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Trade and other payables | 6,106.7 | \u00a0 | 6,106.7 | \u2212 | 6,106.7 |
Deposits | 11,784.7 | \u00a0 | 11,822.4 | \u00a0 | 11,822.4 |
Borrowings from financial institutions | 21,488.4 | \u00a0 | 21,488.4 | \u2212 | 21,488.4 |
Bonds issued | 16,138.3 | 6,902.8 | 9,246.4 | \u00a0 | 16,149.2 |
Total | 56,163.9 | 6,902.8 | 49,309.7 | \u2212 | 56,212.5 |
Level\u00a01 \u2013 for the equity instruments measured at this level the Group has used the current bid price for the equity instrument in a quoted market while for financial asset debt securities the Group has used the quoted government bond price in an active market.
Level\u00a02\u00a0\u2013 loans to associates and jointly controlled entities have been fair valued using a discounted cashflow model using market observable inputs for the discount rate while the key inputs used in valuing the derivative hedge and hedging instruments are directly observable inputs including forward exchange rates, yield curves and spot rates. For details on lease receivables fair value measurement see Note\u00a022.
Level\u00a03 \u2013 the Group has an equity investment in Constellation Automotive Holdings S.a.r.l., where the discounted cashflow valuation model has a significant part of the inputs that are not market observable. Unobservable in this context means that there is little or no current market data available from which to derive a price that an unrelated, informed buyer would be expected to purchase the asset or liability.
For each level there has been no change to the valuation techniques used during the period. For financial instruments that are recognised at fair value on a recurring basis, the Group determines whether transfers have occurred between Levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting year. There were no transfers between the different levels during the current reporting or prior period.
Other financial assets and liabilities not measured at fair value have a carrying amount which is a reasonable approximation of fair value, due to being short-term in nature.
\u00a0
The movements in the fair value of the level\u00a03 financial assets and liabilities are shown as follows:
\u00a0
Level\u00a03 financial asset (in EUR million) | 2024 | 2023 |
|---|---|---|
At 1\u00a0January | 15.4 | \u2212 |
Change in scope | \u2212 | 16.4 |
Net profit/(loss) recorded in the income statement | 4.0 | (1.0) |
At 31\u00a0December | 19.4 | 15.4 |
The authorised capital as of 31\u00a0December 2024 amounted to EUR\u00a01,225.4\u00a0million (2023: EUR\u00a01,225.4\u00a0million). The authorised capital is divided into 816,960,428 ordinary shares (2023: 816,960,428) with a nominal value of EUR\u00a01.50 each. At 31\u00a0December 2024 the share premium amounted to EUR\u00a03,819.4\u00a0million (2023: EUR\u00a03,819.4\u00a0million).
On 22\u00a0May 2023 the Group completed a share issue for 251,215, 332 ordinary shares with a nominal value of EUR\u00a01.50 each. This issue represented 30.75% of the total ordinary shares of the Group at the transaction date. The newly created Group shares were issued to finance the share component of the acquisition of LeasePlan. As required under IFRS\u00a03, the share component is measured based on the fair value of the Group\u2019s shares of EUR\u00a011.43 each at the Completion Date. Based on this, the share component of the acquisition amounts to EUR\u00a02,871.4\u00a0million. The share premium includes the amount paid in excess of the nominal value of the share capital. All shares issued by the Group have been fully paid.
The holders of the shares are entitled to receive dividend as declared at Annual General Meetings and are entitled to vote at meetings of the Company.
\u00a0\u00a0
\u00a0
Other Equity Instruments in the consolidated balance sheet and statement of changes in equity are split as follows:
(in EUR million) | AT1 Capital | Warrants | Treasury shares | Total |
|---|---|---|---|---|
Balance as at 1\u00a0January 2023 | \u2212 | \u2212 | (16.2) | (16.2) |
Issue of warrants | \u2212 | 128.1 | \u2212 | 128.1 |
Acquisition of treasury shares | \u2212 | \u2212 | (4.9) | (4.9) |
Issue of treasury shares to employees | \u2212 | \u2212 | 2.8 | 2.8 |
Proceeds from AT1 capital | 750.0 | \u2212 | \u2212 | 750.0 |
Balance as at 31\u00a0December 2023 | 750.0 | 128.1 | (18.2) | 859.9 |
Issue of treasury shares to employees | \u2212 | \u2212 | 2.9 | 2.9 |
Balance as at 31\u00a0December 2024 | 750.0 | 128.1 | (15.3) | 862.8 |
\u00a0
At the closing date of the acquisition of LeasePlan, for regulatory capital purposes, ALD issued EUR\u00a0750\u00a0million of Additional Tier\u00a01 (AT1) and EUR\u00a01,500\u00a0million of Tier\u00a02 debt (see Note\u00a02) which were fully subscribed by Societe Generale.
AT1 capital qualifies as an equity instrument under IFRS. It is a perpetual deeply subordinated loan agreement with no maturity date fixed, for a maximum principal amount of EUR\u00a0750\u00a0million repayable only once and with an option of an early repayment 5\u00a0years after the signing of the contract. The issuer has the ability to cancel interest payments at its sole discretion. The coupon on this loan is calculated on the basis of a fixed rate of 9.642% per annum.
Interest coupon on these AT1 capital securities, in the year ending 31\u00a0December 2024, amounts to EUR\u00a073.5\u00a0million (2023: 45\u00a0million). During 2024 an amount of EUR\u00a073.1\u00a0million (2023: EUR\u00a07.8\u00a0million) of interest was paid out of the retained earnings. The remaining interest of EUR\u00a037.6\u00a0million is payable on 30\u00a0June 2025.
In the context of the acquisition of LeasePlan, the ordinary share issue on 22\u00a0May 2023 mentioned above included the issue of 26,310,039 ordinary shares with one for one warrants attached to them. The Group has undertaken to issue such warrants (ABSA) for the benefit of the former LeasePlan shareholders.
These warrants are defined as equity instruments under IAS\u00a032 as there is a contract between the holder and the issuer which will be settled solely by the delivery of a fixed number of shares in exchange for a fixed amount of cash. These warrants are measured at fair value of EUR\u00a0128.1\u00a0million as at 22\u00a0May 2023 and would become exercisable based on the formula set out in the Framework Agreement (see Note\u00a02 for further details).
At a General Meeting held in prior years, the Group was authorised to purchase its own shares for the purposes of attributing, covering and paying off any scheme for the allocation of free shares, employee savings scheme and any other form of allocation to employees and executive directors of the Company or of companies related to it under the conditions set out in applicable legislative and regulatory provisions, in particular in terms of sharing in the benefits of the Company\u2019s expansion, the allocation of free shares, all schemes for employee shareholding and to carry out all hedging operations relating to the said employee shareholding schemes. Treasury shares held by the Group amount to 998,955\u00a0shares at 31\u00a0December 2024 (2023: 1,268,887\u00a0shares). Treasury shares do not have any voting rights attached to them.
\u00a0\u00a0
Translation reserves in 2024 have been positively impacted by:
\u00a0
Other reserves in the consolidated balance sheet and statement of changes in equity are split as follows:
(in EUR million) | Hedging reserve\u00a0(1) | Actuarial gain/(loss) Reserve\u00a0(1) | Share-based payments | Total |
|---|---|---|---|---|
Balance as at 1\u00a0January 2023 | 30.3 | 1.0 | 5.1 | 36.4 |
Changes in cash flow hedges | (64.9) | \u2212 | \u2212 | (64.9) |
Changes in fair value of debt instruments | 8.4 | \u2212 | \u2212 | 8.4 |
Remeasurement of post-employment benefit obligations | \u2212 | (3.1) | \u2212 | (3.1) |
Share-Based payments | \u2212 | \u2212 | 3.3 | 3.3 |
Issue of treasury shares to employees | \u2212 | \u2212 | (2.8) | (2.8) |
Balance as at 31\u00a0December 2023 | (26.2) | (2.1) | 5.5 | (22.8) |
Changes in cash flow hedges | 12.2 | \u2212 | \u2212 | 12.2 |
Changes in fair value of debt instruments | 4.4 | \u2212 | \u2212 | 4.4 |
Remeasurement of post-employment benefit obligations | \u2212 | (0.4) | \u2212 | (0.4) |
Share-Based payments | \u2212 | \u2212 | 2.4 | 2.4 |
Issue of treasury shares to employees | \u2212 | \u2212 | (2.9) | (2.9) |
Balance as at 31\u00a0December 2024 | (9.6) | (2.5) | 5.0 | (7.2) |
|
\u00a0
The change in fair value of the debt instruments is designated as part of the cash flow hedge and as such the fair value movement has been included in equity rather than the income statement.
\u00a0
\u00a0
Non-controlling interests in the consolidated balance sheet and statement of changes in equity are as follows:
(in EUR million) | Total |
|---|---|
Balance as at 1\u00a0January 2023 | 36.8 |
Currency translation differences | 0.1 |
Net income\u00a0(1) | 27.9 |
Dividends | (8.6) |
Scope change | 506.2 |
Dividend payment on AT1 capital | (36.9) |
Balance as at 31\u00a0December 2023 | 525.6 |
Currency translation differences | (0.1) |
Net income\u00a0(1) | 26.6 |
Dividends | (6.4) |
Scope change | 0.1 |
Settlement of AT1 capital | (500.0) |
Dividend payment on AT1 capital | (18.4) |
Balance as at 31\u00a0December 2024 | 27.2 |
|
\u00a0
At the acquisition date 22\u00a0May 2023, the acquired net assets of LeasePlan include AT1 capital for EUR\u00a0513\u00a0million recorded in scope change line (including EUR\u00a018.4\u00a0million of accrued interest) which was previously issued by LeasePlan Corporation NV in 2019. These capital securities qualified as an equity instrument and were undated, deeply subordinated, resettable and callable until their redemption on 29\u00a0May 2024. There was a fixed interest coupon of 7.375% per annum, payable semi-annually. The interest payment for 2024 amounted to EUR\u00a018.4\u00a0million.
", "dimensions": { "concept": "ifrs-full:DisclosureOfShareCapitalReservesAndOtherEquityInterestExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_9fb0d335-7023-4132-9102-c458327b6d3e": { "value": "The authorised capital as of 31\u00a0December 2024 amounted to EUR\u00a01,225.4\u00a0million (2023: EUR\u00a01,225.4\u00a0million). The authorised capital is divided into 816,960,428 ordinary shares (2023: 816,960,428) with a nominal value of EUR\u00a01.50 each. At 31\u00a0December 2024 the share premium amounted to EUR\u00a03,819.4\u00a0million (2023: EUR\u00a03,819.4\u00a0million).
On 22\u00a0May 2023 the Group completed a share issue for 251,215, 332 ordinary shares with a nominal value of EUR\u00a01.50 each. This issue represented 30.75% of the total ordinary shares of the Group at the transaction date. The newly created Group shares were issued to finance the share component of the acquisition of LeasePlan. As required under IFRS\u00a03, the share component is measured based on the fair value of the Group\u2019s shares of EUR\u00a011.43 each at the Completion Date. Based on this, the share component of the acquisition amounts to EUR\u00a02,871.4\u00a0million. The share premium includes the amount paid in excess of the nominal value of the share capital. All shares issued by the Group have been fully paid.
The holders of the shares are entitled to receive dividend as declared at Annual General Meetings and are entitled to vote at meetings of the Company.
", "dimensions": { "concept": "ifrs-full:DisclosureOfIssuedCapitalExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_96361bff-9338-4973-9cb0-228900275623": { "value": "The authorised capital as of 31\u00a0December 2024 amounted to EUR\u00a01,225.4\u00a0million (2023: EUR\u00a01,225.4\u00a0million). The authorised capital is divided into 816,960,428 ordinary shares (2023: 816,960,428) with a nominal value of EUR\u00a01.50 each. At 31\u00a0December 2024 the share premium amounted to EUR\u00a03,819.4\u00a0million (2023: EUR\u00a03,819.4\u00a0million).
On 22\u00a0May 2023 the Group completed a share issue for 251,215, 332 ordinary shares with a nominal value of EUR\u00a01.50 each. This issue represented 30.75% of the total ordinary shares of the Group at the transaction date. The newly created Group shares were issued to finance the share component of the acquisition of LeasePlan. As required under IFRS\u00a03, the share component is measured based on the fair value of the Group\u2019s shares of EUR\u00a011.43 each at the Completion Date. Based on this, the share component of the acquisition amounts to EUR\u00a02,871.4\u00a0million. The share premium includes the amount paid in excess of the nominal value of the share capital. All shares issued by the Group have been fully paid.
The holders of the shares are entitled to receive dividend as declared at Annual General Meetings and are entitled to vote at meetings of the Company.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIssuedCapitalExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_c11fe3b6-dbc6-4e6c-91c0-567bd9c660e3": { "value": "At a General Meeting held in prior years, the Group was authorised to purchase its own shares for the purposes of attributing, covering and paying off any scheme for the allocation of free shares, employee savings scheme and any other form of allocation to employees and executive directors of the Company or of companies related to it under the conditions set out in applicable legislative and regulatory provisions, in particular in terms of sharing in the benefits of the Company\u2019s expansion, the allocation of free shares, all schemes for employee shareholding and to carry out all hedging operations relating to the said employee shareholding schemes. Treasury shares held by the Group amount to 998,955\u00a0shares at 31\u00a0December 2024 (2023: 1,268,887\u00a0shares). Treasury shares do not have any voting rights attached to them.
", "dimensions": { "concept": "ifrs-full:DisclosureOfTreasurySharesExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_09823ef7-1d19-48a5-a33d-f8e59e4f8f14": { "value": "At a General Meeting held in prior years, the Group was authorised to purchase its own shares for the purposes of attributing, covering and paying off any scheme for the allocation of free shares, employee savings scheme and any other form of allocation to employees and executive directors of the Company or of companies related to it under the conditions set out in applicable legislative and regulatory provisions, in particular in terms of sharing in the benefits of the Company\u2019s expansion, the allocation of free shares, all schemes for employee shareholding and to carry out all hedging operations relating to the said employee shareholding schemes. Treasury shares held by the Group amount to 998,955\u00a0shares at 31\u00a0December 2024 (2023: 1,268,887\u00a0shares). Treasury shares do not have any voting rights attached to them.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTreasurySharesExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_34c1fec6-c978-427e-b7fd-e7ad6fcc796c": { "value": "Translation reserves in 2024 have been positively impacted by:
\u00a0
Other reserves in the consolidated balance sheet and statement of changes in equity are split as follows:
(in EUR million) | Hedging reserve\u00a0(1) | Actuarial gain/(loss) Reserve\u00a0(1) | Share-based payments | Total |
|---|---|---|---|---|
Balance as at 1\u00a0January 2023 | 30.3 | 1.0 | 5.1 | 36.4 |
Changes in cash flow hedges | (64.9) | \u2212 | \u2212 | (64.9) |
Changes in fair value of debt instruments | 8.4 | \u2212 | \u2212 | 8.4 |
Remeasurement of post-employment benefit obligations | \u2212 | (3.1) | \u2212 | (3.1) |
Share-Based payments | \u2212 | \u2212 | 3.3 | 3.3 |
Issue of treasury shares to employees | \u2212 | \u2212 | (2.8) | (2.8) |
Balance as at 31\u00a0December 2023 | (26.2) | (2.1) | 5.5 | (22.8) |
Changes in cash flow hedges | 12.2 | \u2212 | \u2212 | 12.2 |
Changes in fair value of debt instruments | 4.4 | \u2212 | \u2212 | 4.4 |
Remeasurement of post-employment benefit obligations | \u2212 | (0.4) | \u2212 | (0.4) |
Share-Based payments | \u2212 | \u2212 | 2.4 | 2.4 |
Issue of treasury shares to employees | \u2212 | \u2212 | (2.9) | (2.9) |
Balance as at 31\u00a0December 2024 | (9.6) | (2.5) | 5.0 | (7.2) |
|
\u00a0
The change in fair value of the debt instruments is designated as part of the cash flow hedge and as such the fair value movement has been included in equity rather than the income statement.
", "dimensions": { "concept": "ifrs-full:DisclosureOfReservesAndOtherEquityInterestExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_daea3798-99df-4113-93eb-5380aee0be2b": { "value": "\u00a0
Non-controlling interests in the consolidated balance sheet and statement of changes in equity are as follows:
(in EUR million) | Total |
|---|---|
Balance as at 1\u00a0January 2023 | 36.8 |
Currency translation differences | 0.1 |
Net income\u00a0(1) | 27.9 |
Dividends | (8.6) |
Scope change | 506.2 |
Dividend payment on AT1 capital | (36.9) |
Balance as at 31\u00a0December 2023 | 525.6 |
Currency translation differences | (0.1) |
Net income\u00a0(1) | 26.6 |
Dividends | (6.4) |
Scope change | 0.1 |
Settlement of AT1 capital | (500.0) |
Dividend payment on AT1 capital | (18.4) |
Balance as at 31\u00a0December 2024 | 27.2 |
|
\u00a0
At the acquisition date 22\u00a0May 2023, the acquired net assets of LeasePlan include AT1 capital for EUR\u00a0513\u00a0million recorded in scope change line (including EUR\u00a018.4\u00a0million of accrued interest) which was previously issued by LeasePlan Corporation NV in 2019. These capital securities qualified as an equity instrument and were undated, deeply subordinated, resettable and callable until their redemption on 29\u00a0May 2024. There was a fixed interest coupon of 7.375% per annum, payable semi-annually. The interest payment for 2024 amounted to EUR\u00a018.4\u00a0million.
", "dimensions": { "concept": "ifrs-full:DisclosureOfNoncontrollingInterestsExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_cda6f976-4d6d-4550-aed3-a02b460e0c27": { "value": "(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Bank borrowings | 11,996.8 | 13,123.6 |
Tier\u00a02 subordinated debt | 1,500.0 | 1,500.0 |
Non-current borrowings from financial institutions | 13,496.8 | 14,623.6 |
Bank overdrafts | 567.6 | 315.3 |
Bank borrowings | 9,271.8 | 6,537.3 |
Tier\u00a02 subordinated debt | 10.6 | 12.2 |
Current borrowings from financial institutions | 9,850.1 | 6,864.9 |
Total borrowings from financial institutions | 23,346.9 | 21,488.4 |
Bonds and notes-originated from securitisation transactions | 2,060.2 | 2,870.9 |
Bonds and notes-originated from EMTN and other programmes | 9,473.0 | 10,070.3 |
Bonds and notes\u00a0\u2013 fair value adjustment | (33.1) | (163.8) |
Non-current bonds and notes issued | 11,500.1 | 12,777.3 |
Bonds and notes-originated from securitisation transactions | 1,491.7 | 1,385.4 |
Bonds and notes-originated from EMTN and other programmes | 4,325.1 | 2,053.9 |
Bonds and notes\u00a0\u2013 fair value adjustment | (81.9) | (78.4) |
Current bonds and notes issued | 5,734.9 | 3,360.9 |
Total bonds and notes issued | 17,235.0 | 16,138.3 |
Total borrowings from financial institutions and bonds | 40,581.8 | 37,626.7 |
Non-current deposits | 7,906.6 | 4,041.5 |
Current deposits | 5,984.0 | 7,743.2 |
Total deposits (1) | 13,890.6 | 11,784.7 |
Total non-current financial debt | 32,641.4 | 31,442.5 |
Total current financial debt | 21,831.0 | 17,969.0 |
Total financial debt | 54,472.4 | 49,411.5 |
As percentage of total financial debt | \u00a0 | \u00a0 |
Total borrowings | 42.9% | 43.5% |
Total deposits\u00a0(1) | 25.5% | 23.9% |
Total bonds | 25.1% | 24.0% |
Total securitisation programme | 6.5% | 8.6% |
|
As at 31 December 2024, the net amount of loans granted to the Group entities by Societe Generale and its affiliates minus the deposits placed by the Group entities with Societe Generale Group entities, was EUR 12,511.2 million (2023: EUR 13,330.4 million).
Most of the funding provided by the Societe Generale Group is granted through Societe Generale Paris and Societe Generale Luxembourg. Societe Generale Paris and Societe Generale Luxembourg\u00a0 funds Ayvens Central Treasury which grants loans in different currencies to the Group subsidiaries and holding companies.
Included in Societe Generale funding is Tier\u00a02 subordinated debt which has been issued at a variable rate of (Euribor 3-month +336bps margin) and has a 10\u00a0year maturity with a non-cancellable period of 5\u00a0years. As the instrument qualifies as a debt instrument measured at amortised cost, interest is accounted for using the effective interest rate method. Debt issue costs were deducted from the initial fair value of the liability. Tier\u00a02 subordinated debt has been partially used to fund the acquisition of LeasePlan (EUR\u00a0615.5\u00a0million).
Tier\u00a01 subordinated debt (AT1 capital) qualifies as an equity instrument under IFRS. For further information on Tier\u00a01 debt, see Note\u00a027.
\u00a0
An amount of EUR\u00a05,286.6\u00a0million or 9.7% of total funding is provided by external banks (2023: 10.6% at EUR\u00a05,252.0\u00a0million).
Included within this amount are loans granted by the European Investment Bank of EUR\u00a0300\u00a0million in April\u00a02023. This enables the Group to develop its range of hybrid and electric vehicles across the EU, particularly in France, Germany, Italy, Spain, Belgium and the Netherlands.
\u00a0
Saving deposits raised by Ayvens Bank amount to EUR\u00a013.8\u00a0billion at 31\u00a0December 2024 of which 48.4% is deposited for a fixed term (2023: 31.7% at EUR\u00a011.8\u00a0billion). Savings deposits are raised by Ayvens Bank N.V. which holds a banking licence in the Netherlands. Ayvens Bank also operates on the German savings deposit market with a cross border offering from the Netherlands.
The maturity analysis of these deposits is as follows:
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Deposits\u00a0(1) | 13,767.4 | 11,729.2 |
Payables related to deposits | 123.2 | 55.5 |
Total | 13,890.6 | 11,784.7 |
of which: | \u00a0 | \u00a0 |
Less than 1\u00a0year | 5,984.0 | 7,743.2 |
1 -5\u00a0years | 7,906.5 | 3,925.0 |
Over 5\u00a0years | \u2212 | 116.6 |
|
\u00a0
The average interest rates on the outstanding balances of the fixed term savings deposits in original maturity terms are as follows:
\u00a0 | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Three months or less | 1.79% | 1.60% |
Longer than three months, less than a year | 3.04% | 2.71% |
Longer than a year, less than 5\u00a0years | 3.01% | 1.53% |
\u00a0
The interest of the on-demand accounts is set monthly. The interest outstanding at the balance sheet date was EUR\u00a0122.6\u00a0million (2023: EUR\u00a055.5\u00a0million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfDepositsFromBanksExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_eb7fecad-dde9-41e6-9608-886a850e012c": { "value": "(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Bank borrowings | 11,996.8 | 13,123.6 |
Tier\u00a02 subordinated debt | 1,500.0 | 1,500.0 |
Non-current borrowings from financial institutions | 13,496.8 | 14,623.6 |
Bank overdrafts | 567.6 | 315.3 |
Bank borrowings | 9,271.8 | 6,537.3 |
Tier\u00a02 subordinated debt | 10.6 | 12.2 |
Current borrowings from financial institutions | 9,850.1 | 6,864.9 |
Total borrowings from financial institutions | 23,346.9 | 21,488.4 |
Bonds and notes-originated from securitisation transactions | 2,060.2 | 2,870.9 |
Bonds and notes-originated from EMTN and other programmes | 9,473.0 | 10,070.3 |
Bonds and notes\u00a0\u2013 fair value adjustment | (33.1) | (163.8) |
Non-current bonds and notes issued | 11,500.1 | 12,777.3 |
Bonds and notes-originated from securitisation transactions | 1,491.7 | 1,385.4 |
Bonds and notes-originated from EMTN and other programmes | 4,325.1 | 2,053.9 |
Bonds and notes\u00a0\u2013 fair value adjustment | (81.9) | (78.4) |
Current bonds and notes issued | 5,734.9 | 3,360.9 |
Total bonds and notes issued | 17,235.0 | 16,138.3 |
Total borrowings from financial institutions and bonds | 40,581.8 | 37,626.7 |
Non-current deposits | 7,906.6 | 4,041.5 |
Current deposits | 5,984.0 | 7,743.2 |
Total deposits (1) | 13,890.6 | 11,784.7 |
Total non-current financial debt | 32,641.4 | 31,442.5 |
Total current financial debt | 21,831.0 | 17,969.0 |
Total financial debt | 54,472.4 | 49,411.5 |
As percentage of total financial debt | \u00a0 | \u00a0 |
Total borrowings | 42.9% | 43.5% |
Total deposits\u00a0(1) | 25.5% | 23.9% |
Total bonds | 25.1% | 24.0% |
Total securitisation programme | 6.5% | 8.6% |
|
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Bank borrowings | 11,996.8 | 13,123.6 |
Tier\u00a02 subordinated debt | 1,500.0 | 1,500.0 |
Non-current borrowings from financial institutions | 13,496.8 | 14,623.6 |
Bank overdrafts | 567.6 | 315.3 |
Bank borrowings | 9,271.8 | 6,537.3 |
Tier\u00a02 subordinated debt | 10.6 | 12.2 |
Current borrowings from financial institutions | 9,850.1 | 6,864.9 |
Total borrowings from financial institutions | 23,346.9 | 21,488.4 |
Bonds and notes-originated from securitisation transactions | 2,060.2 | 2,870.9 |
Bonds and notes-originated from EMTN and other programmes | 9,473.0 | 10,070.3 |
Bonds and notes\u00a0\u2013 fair value adjustment | (33.1) | (163.8) |
Non-current bonds and notes issued | 11,500.1 | 12,777.3 |
Bonds and notes-originated from securitisation transactions | 1,491.7 | 1,385.4 |
Bonds and notes-originated from EMTN and other programmes | 4,325.1 | 2,053.9 |
Bonds and notes\u00a0\u2013 fair value adjustment | (81.9) | (78.4) |
Current bonds and notes issued | 5,734.9 | 3,360.9 |
Total bonds and notes issued | 17,235.0 | 16,138.3 |
Total borrowings from financial institutions and bonds | 40,581.8 | 37,626.7 |
Non-current deposits | 7,906.6 | 4,041.5 |
Current deposits | 5,984.0 | 7,743.2 |
Total deposits (1) | 13,890.6 | 11,784.7 |
Total non-current financial debt | 32,641.4 | 31,442.5 |
Total current financial debt | 21,831.0 | 17,969.0 |
Total financial debt | 54,472.4 | 49,411.5 |
As percentage of total financial debt | \u00a0 | \u00a0 |
Total borrowings | 42.9% | 43.5% |
Total deposits\u00a0(1) | 25.5% | 23.9% |
Total bonds | 25.1% | 24.0% |
Total securitisation programme | 6.5% | 8.6% |
|
Within this \u00a0programme, the Group has the following outstanding bonds issued as at 31\u00a0December 2024:
Issued date | Maturity date | Amount (in million) | Rate |
|---|---|---|---|
ALD | |||
February\u00a02022 | March\u00a02026 | 700 | 1.250% |
July\u00a02022 | July\u00a02027 | 500 | 4.000% |
October\u00a02022 | October\u00a02025 | 750 | 4.750% |
January\u00a02023 | January\u00a02027 | 750 | 4.250% |
February\u00a02023 | February\u00a02025 | 500 | Euribor 3M +0.55 |
June\u00a02023 | February\u00a02025 | 600 | Euribor 3M +0.55 |
October\u00a02023 | October\u00a02025 | 1000 | Euribor 3M +0.65 |
October\u00a02023 | October\u00a02028 | 1000 | 4.875% |
November\u00a02023 | November\u00a02026 | 500 | 4.375% |
January\u00a02024 | January\u00a02031 | 500 | 4.000% |
January\u00a02024 | January\u00a02028 | 1000 | 3.875% |
February\u00a02024 | February\u00a02027 | 1000 | 3.875% |
March\u00a02024(1) | March\u00a02029 | 220 | 2.225% |
July\u00a02024 | July\u00a02029 | 750 | 3.875% |
LeasePlan\u00a0(2) | |||
April\u00a02020 | April\u00a02025 | 500 | 3.500% |
February\u00a02021 | February\u00a02026 | 1000 | 0.250% |
September\u00a02021 | September\u00a02026 | 1000 | 0.250% |
May\u00a02022 | May\u00a02025 | 750 | 2.130% |
(1) \u00a0Bond issue in Swiss Franc (CHF). (2) \u00a0Excluding private placements. |
\u00a0
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Less than 1\u00a0year | 4,243.2 | 1,975.6 |
1-5\u00a0years | 8,939.9 | 9,844.0 |
Over 5\u00a0years | 500.0 | 62.5 |
Total bonds | 13,683.0 | 11,882.1 |
\u00a0
\u00a0
The carrying amounts of the Group\u2019s bonds are denominated in the following currencies:
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Euro | 13,164.0 | 10,766.9 |
Norwegian Krona | 264.9 | 317.7 |
Other currencies | 254.1 | 797.4 |
Total bonds | 13,683.0 | 11,882.1 |
The following debt securities are currently issued:
Programme and special purpose company | Deal type | Country | Currency | Amount (in\u00a0million)\u00a0(1) | Set up/ |
|---|---|---|---|---|---|
ALD Funding Limited | Private | UK | GBP | 500 | February\u00a02023 |
Axus Finance SPRL | Private | Belgium | EUR | 401 | June\u00a02022 |
FCT Red & Black Auto Lease France 2 | Public | France | EUR | 390 | June\u00a02023 |
Bumper BE\u00a0NV/SA No.\u00a001 | Public | Belgium | EUR | 100 | October\u00a02021 |
Bumper FR 2022-1 FCT | Public | France | EUR | 197 | April\u00a02022 |
C_NL16\u00a0\u2013 Bumper NL 2023-1 BV | Public | Netherlands | EUR | 453 | September\u00a02023 |
Bumper NL 2024-1 BV | Public | Netherlands | EUR | 600 | September\u00a02024 |
C_NL17\u00a0\u2013 Axus Finance NL\u00a0BV | Private | Netherlands | EUR | 500 | June\u00a02023 |
Bumper DE\u00a0SA\u00a02023-1 | Public | Germany | EUR | 305 | February\u00a02023 |
|
\u00a0
The interest outstanding at the balance sheet date was EUR\u00a0225.1\u00a0million (2023: 135.8\u00a0million).
\u00a0
The maturity of the asset-backed securitisation programmes is as follows:
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Less than 1\u00a0year | 1,491.7 | 1,385.4 |
1-5\u00a0years | 2,060.2 | 2,870.9 |
Total securitisation programme | 3,552.0 | 4,256.2 |
\u00a0
\u00a0
The carrying amounts of the Group\u2019s asset-backed securitisation programmes are denominated in the following currencies:
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Euro | 2,949.0 | 3,730.0 |
UK Pound | 603.0 | 526.2 |
Total securitisation programme | 3,552.0 | 4,256.2 |
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Bank borrowings | 11,996.8 | 13,123.6 |
Tier\u00a02 subordinated debt | 1,500.0 | 1,500.0 |
Non-current borrowings from financial institutions | 13,496.8 | 14,623.6 |
Bank overdrafts | 567.6 | 315.3 |
Bank borrowings | 9,271.8 | 6,537.3 |
Tier\u00a02 subordinated debt | 10.6 | 12.2 |
Current borrowings from financial institutions | 9,850.1 | 6,864.9 |
Total borrowings from financial institutions | 23,346.9 | 21,488.4 |
Bonds and notes-originated from securitisation transactions | 2,060.2 | 2,870.9 |
Bonds and notes-originated from EMTN and other programmes | 9,473.0 | 10,070.3 |
Bonds and notes\u00a0\u2013 fair value adjustment | (33.1) | (163.8) |
Non-current bonds and notes issued | 11,500.1 | 12,777.3 |
Bonds and notes-originated from securitisation transactions | 1,491.7 | 1,385.4 |
Bonds and notes-originated from EMTN and other programmes | 4,325.1 | 2,053.9 |
Bonds and notes\u00a0\u2013 fair value adjustment | (81.9) | (78.4) |
Current bonds and notes issued | 5,734.9 | 3,360.9 |
Total bonds and notes issued | 17,235.0 | 16,138.3 |
Total borrowings from financial institutions and bonds | 40,581.8 | 37,626.7 |
Non-current deposits | 7,906.6 | 4,041.5 |
Current deposits | 5,984.0 | 7,743.2 |
Total deposits (1) | 13,890.6 | 11,784.7 |
Total non-current financial debt | 32,641.4 | 31,442.5 |
Total current financial debt | 21,831.0 | 17,969.0 |
Total financial debt | 54,472.4 | 49,411.5 |
As percentage of total financial debt | \u00a0 | \u00a0 |
Total borrowings | 42.9% | 43.5% |
Total deposits\u00a0(1) | 25.5% | 23.9% |
Total bonds | 25.1% | 24.0% |
Total securitisation programme | 6.5% | 8.6% |
|
\u00a0
Saving deposits raised by Ayvens Bank amount to EUR\u00a013.8\u00a0billion at 31\u00a0December 2024 of which 48.4% is deposited for a fixed term (2023: 31.7% at EUR\u00a011.8\u00a0billion). Savings deposits are raised by Ayvens Bank N.V. which holds a banking licence in the Netherlands. Ayvens Bank also operates on the German savings deposit market with a cross border offering from the Netherlands.
The maturity analysis of these deposits is as follows:
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Deposits\u00a0(1) | 13,767.4 | 11,729.2 |
Payables related to deposits | 123.2 | 55.5 |
Total | 13,890.6 | 11,784.7 |
of which: | \u00a0 | \u00a0 |
Less than 1\u00a0year | 5,984.0 | 7,743.2 |
1 -5\u00a0years | 7,906.5 | 3,925.0 |
Over 5\u00a0years | \u2212 | 116.6 |
|
\u00a0
The average interest rates on the outstanding balances of the fixed term savings deposits in original maturity terms are as follows:
\u00a0 | Year ended 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Three months or less | 1.79% | 1.60% |
Longer than three months, less than a year | 3.04% | 2.71% |
Longer than a year, less than 5\u00a0years | 3.01% | 1.53% |
\u00a0
The interest of the on-demand accounts is set monthly. The interest outstanding at the balance sheet date was EUR\u00a0122.6\u00a0million (2023: EUR\u00a055.5\u00a0million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfDepositsFromCustomersExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_effd9c64-a7a4-443f-82ee-6d90742ec4d4": { "value": "As at 31 December 2024, the net amount of loans granted to the Group entities by Societe Generale and its affiliates minus the deposits placed by the Group entities with Societe Generale Group entities, was EUR 12,511.2 million (2023: EUR 13,330.4 million).
Most of the funding provided by the Societe Generale Group is granted through Societe Generale Paris and Societe Generale Luxembourg. Societe Generale Paris and Societe Generale Luxembourg\u00a0 funds Ayvens Central Treasury which grants loans in different currencies to the Group subsidiaries and holding companies.
Included in Societe Generale funding is Tier\u00a02 subordinated debt which has been issued at a variable rate of (Euribor 3-month +336bps margin) and has a 10\u00a0year maturity with a non-cancellable period of 5\u00a0years. As the instrument qualifies as a debt instrument measured at amortised cost, interest is accounted for using the effective interest rate method. Debt issue costs were deducted from the initial fair value of the liability. Tier\u00a02 subordinated debt has been partially used to fund the acquisition of LeasePlan (EUR\u00a0615.5\u00a0million).
Tier\u00a01 subordinated debt (AT1 capital) qualifies as an equity instrument under IFRS. For further information on Tier\u00a01 debt, see Note\u00a027.
\u00a0
Related party transactions relate mainly to transactions with companies of the Societe Generale Group, the Group majority shareholder, and transactions with companies of TDR Capital as a result of the acquisition of LeasePlan (see Note\u00a02 for further details). There was no material change in the nature of the transactions conducted by the Group with related parties from prior year. All business relations with Societe Generale are handled at normal market conditions.
Key management includes the following members of the Executive Committee: Chief Executive Officer, three Deputy Chief Executive Officers, Chairman of the Board and the Board directors.
The compensation paid to key management include Share based payments as well, which are reflected in Note\u00a028 Share- based payments.
\u00a0
The compensation paid or payable to key management for employee services is shown below:
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Salaries and other short-term employment benefits | 2.9 | 2.3 |
Post employment benefits | \u2212 | \u2212 |
Remuneration for the activity of the Board members | 0.4 | 0.4 |
Other long-term benefits | 1.5 | 0.8 |
Total | 4.8 | 3.4 |
\u00a0
Societe Generale and its subsidiaries are customers of the Group. The Group leases to Societe Generale and its subsidiaries a fleet of 7,371 vehicles across 19\u00a0countries (2023: 7,683 vehicles across 20\u00a0countries). Rentals have been priced at normal market conditions. More than 64% of the total fleet leased to Societe Generale Group is leased by Ayvens France (2023: 65%). Rental paid by Societe Generale Group to France for the year ending 31\u00a0December 2024 amounted to EUR\u00a020.6\u00a0million (2023: EUR\u00a019.5\u00a0million). The amount outstanding as at 31\u00a0December 2024 amounted to 2.5\u00a0million (2023: 1.4\u00a0million).
TDR Capital has a controlling interest in Constellation Automotive Group, which had a controlling interest in British Car Auction (BCA) and CN Group BV. The Group sells ex-lease vehicles on an arm\u2019s length basis under a long-term service agreement. The total sales revenues from transactions during 2024 amounted to EUR 0.4 billion (2023: EUR 0.7 billion). \u00a0The result of transactions with Constellation Automotive Holdings for the year ending 31\u00a0December 2024 and 2023 is not material at the Group level. As at 31\u00a0December 2024 a balance is owed from Constellation Automotive Holdings of EUR\u00a011.7\u00a0million (2023: EUR\u00a04.3\u00a0million).
The Group has a contract with Societe Generale Global Services Centre (India), with which the Group subcontracts IT services including development, maintenance and support of international applications. The Group also subcontracts some technical infrastructure services to Societe Generale, mainly in France. The overall amount of IT services subcontracted to Societe Generale and its subsidiaries for the year ending 31\u00a0December 2024 amounts to EUR\u00a031.3\u00a0million (2023: EUR\u00a029.8\u00a0million). The amount outstanding as of 31\u00a0December 2024 amount to EUR\u00a09.6\u00a0million (2023: EUR\u00a00.5\u00a0million).
Some Group entities share premises with Societe Generale or with Societe Generale business divisions in some countries (mainly France and Denmark which represent around 53% of the total rentals paid to Societe Generale). Rentals have been priced at arm\u2019s length and amounted to EUR\u00a00.9\u00a0million for the year ending 31\u00a0December 2024 (2023: EUR\u00a00.8\u00a0million).
Societe Generale retail and corporate banking network sells long term rental contracts to customers on behalf of the Group against a commission for each contract sourced. In the year ending 31\u00a0December 2024, around 21,000\u00a0contracts have been signed through the Societe Generale distribution network in three different countries (2023: around 20,000\u00a0contracts). The rental contract brokerage\u2019s commission paid to Societe Generale by Ayvens France represented EUR\u00a04.2\u00a0million for the year ended 31\u00a0December 2024, (2023: EUR\u00a03.0\u00a0million).
Ayvens Italy has subscribed to a TPL insurance policy for part of their fleet through Sogessur, the Car insurance company of Societe Generale. Sogessur acts as a frontier and is reinsured through Ayvens Insurance, the reinsurance company of the Group. Insurance premiums have been fixed at arm\u2019s length. The overall amount of insurance premium paid by the Italy subsidiary to Sogessur for the year ending 31\u00a0December 2024 amounted to EUR\u00a047.3\u00a0million (2023: EUR\u00a047.0\u00a0million). There are no outstanding balances at the year end.
Societe Generale Group, as a shareholder, provides Ayvens with the following intercompany corporate services:
These Corporate services provided by Societe Generale have been subject to compensation of EUR\u00a07.8\u00a0million in the year ending 31\u00a0December 2024 (2023: EUR\u00a08.2\u00a0million).
In addition, for the year ending 31\u00a0December 2024, there were 55\u00a0employees seconded from Societe Generale (2023: 78) to the Group. For certain employees, they remained on the payroll of Societe Generale and were re-billed to the Group, which amounted to re-billing for staff seconded of EUR\u00a016.4\u00a0million in the year ending 31\u00a0December 2024 (2023: 17.0\u00a0million). The amount outstanding as at 31\u00a0December 2024 amount to 1.1\u00a0million (2023: 1.0\u00a0million).
As at 31 December 2024, the net amount of loans granted to the Group entities by Societe Generale and its affiliates minus the deposits placed by the Group entities with Societe Generale Group entities, was EUR 12,511.2 million (2023: EUR 13,330.4 million).
Most of the funding provided by the Societe Generale Group is granted through Societe Generale Paris and Societe Generale Luxembourg. Societe Generale Paris and Societe Generale Luxembourg\u00a0 funds Ayvens Central Treasury which grants loans in different currencies to the Group subsidiaries and holding companies.
Societe Generale also provides bank guarantees on behalf of the Group and its subsidiaries in relation to external funding. Overall guarantees released by Societe Generale amounted up to EUR\u00a01,685.6\u00a0million as of 31\u00a0December 2024 (2023: EUR\u00a01,702.8\u00a0million).
Societe Generale also provides the Group with derivatives instruments which have a nominal amount of EUR\u00a05,002\u00a0million, and are represented on the balance sheet as of 31\u00a0December 2024 for a total amount of EUR\u00a016.3\u00a0million in assets and EUR\u00a013.5\u00a0million in liabilities (2023: nominal of EUR\u00a05,259.28\u00a0million, with EUR\u00a065.8\u00a0million in assets and EUR\u00a092.0\u00a0million in liabilities).
The Group has long-term cash deposits with Societe Generale for a total of EUR\u00a0120.2\u00a0million as of 31\u00a0December 2024 (2023: EUR\u00a0180.9\u00a0million). These deposits will roll-out in approximately 2\u00a0years\u2019 time and will not be renewed.
All business relations with investments accounted for using the equity method are in the ordinary course of business and are handled on normal market terms. In 2024 there was a repayment of 41.5\u00a0million of loans to investments accounted for using the equity method (2023: EUR\u00a039.0\u00a0million) (see Note\u00a018).
ALD Automotive Italia SRL has joined Societe Generale tax consolidation group in Italy in 2016. This regime allows the determination of a single IRES taxable base comprised of the taxable income and losses of each of the participating entities.
", "dimensions": { "concept": "ifrs-full:DisclosureOfRelatedPartyExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_78a40590-74e4-48a9-8110-b8e3dd55f506": { "value": "A guarantee at first demand has been granted to ING Luxembourg for an amount of EUR\u00a050\u00a0million on behalf of Axus Luxembourg SA.
A guarantee has been granted to Stellantis\u00a0SA for an amount of EUR\u00a020\u00a0million on behalf of Fleetpool, under the condition negotiated in the frame of the distribution agreement concluded with this financial institution.
The Group has issued guarantees to the total value of EUR\u00a0324.4\u00a0million of which EUR\u00a0322.4\u00a0million is related to residual value guarantees issued to clients.
The Group has entered into commitments relating to the forward purchase of property and equipment under operating lease and rental fleet amounting to EUR\u00a06.4\u00a0billion (2023: EUR\u00a09.5\u00a0billion) as at the balance sheet date. These commitments are entered into in the ordinary course of business and the majority is back-to-back matched with lease contracts entered into with customers.
In addition, the Group has provided guarantees and counter-guarantees on behalf of its subsidiaries in the event of external financing or property leases of a total amount of EUR 0.8 billion as at 31 December 2024.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_498da097-10df-4829-8f2b-2e050629df91": { "value": "Changes in liabilities arising from financing activities are shown in the table below.
(in EUR million) | Balance as at 1\u00a0January 2024 | Financing cash flows | Interest accrued | Movement in\u00a0fair value | Foreign exchange adjustment | Scope changes | Other | Balance as at 31\u00a0December 2024 |
|---|---|---|---|---|---|---|---|---|
Overdraft | 315.3 | 266.8 | \u2212 | \u2212 | 0.4 | \u2212 | (14.9) | 567.6 |
Borrowings from financial institutions excl. overdraft | 21,173.1 | 752.9 | 133.9 | \u2212 | (44.5) | \u2212 | 763.8 | 22,779.2 |
Bonds and notes issued | 16,138.3 | 474.6 | 91.0 | 127.2 | (9.9) | 381.3 | 32.5 | 17,235.0 |
Deposits | 11,784.7 | 2,038.1 | 67.7 | \u2212 | \u2212 | \u2212 | \u2212 | 13,890.6 |
Lease liabilities | 252.3 | (54.9) | (5.9) | \u2212 | (1.0) | (0.1) | 37.4 | 227.9 |
\u00a0
(in EUR million) | Balance as at 1\u00a0January 2023 | Financing cash flows | Interest accrued | Movement in\u00a0fair value | Foreign exchange adjustment | Scope changes | Other | Balance as at 31\u00a0December 2023 |
|---|---|---|---|---|---|---|---|---|
Overdraft | 129.5 | 157.6 | \u2212 | \u2212 | 1.5 | 26.6 | \u2212 | 315.3 |
Borrowings from financial institutions excl. overdraft | 14,441.6 | 3,868.2 | 63.9 | \u2212 | 101.0 | 2,698.5 | \u2212 | 21,173.1 |
Bonds and notes issued | 5,303.4 | 1,366.3 | 68.8 | 68.2 | 12.2 | 9,319.3 | \u2212 | 16,138.3 |
Deposits | \u2212 | 451.9 | 31.2 | \u2212 | \u2212 | 11,301.7 | \u2212 | 11,784.7 |
Lease liabilities | 117.2 | (52.6) | (5.9) | \u2212 | 0.9 | 163.6 | 29.0 | 252.3 |
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Trade payables | 2,495.3 | 2,560.4 |
Deferred leasing income\u00a0(1) | 796.6 | 732.1 |
Other accruals and other deferred income\u00a0(2) | 1,144.5 | 1,132.3 |
Advance lease instalments received | 690.3 | 808.6 |
Accruals for contract settlements | 476.8 | 472.8 |
VAT and other taxes | 407.6 | 332.1 |
Other | 13.5 | 68.4 |
Trade and other payables | 6,024.5 | 6,106.7 |
|
\u00a0
The majority of the trade and other payables and deferred income, except for deferred leasing income, have a remaining maturity of less than one year.
Other accruals and other deferred amounts contain accruals for different staff expenses, including for the variable remuneration.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherLiabilitiesExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_1ee26a75-0a34-43dc-8fdd-db65119abbb1": { "value": "(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Trade payables | 2,495.3 | 2,560.4 |
Deferred leasing income\u00a0(1) | 796.6 | 732.1 |
Other accruals and other deferred income\u00a0(2) | 1,144.5 | 1,132.3 |
Advance lease instalments received | 690.3 | 808.6 |
Accruals for contract settlements | 476.8 | 472.8 |
VAT and other taxes | 407.6 | 332.1 |
Other | 13.5 | 68.4 |
Trade and other payables | 6,024.5 | 6,106.7 |
|
\u00a0
The majority of the trade and other payables and deferred income, except for deferred leasing income, have a remaining maturity of less than one year.
Other accruals and other deferred amounts contain accruals for different staff expenses, including for the variable remuneration.
", "dimensions": { "concept": "ifrs-full:DisclosureOfTaxReceivablesAndPayablesExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "text_block_e10e24c8-4420-460d-af85-7f886903282f": { "value": "Other accruals and other deferred amounts contain accruals for different staff expenses, including for the variable remuneration.", "dimensions": { "concept": "ifrs-full:DisclosureOfAccruedExpensesAndOtherLiabilitiesExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "fc_158792": { "value": "0.5", "decimals": 1, "dimensions": { "concept": "ifrs-full:DividendsRecognisedAsDistributionsToOwnersPerShare", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR/xbrli:shares" } }, "fc_162890": { "value": "1.1", "decimals": 1, "dimensions": { "concept": "ifrs-full:DividendsRecognisedAsDistributionsToOwnersPerShare", "entity": "scheme:969500E7V019H9NP7427", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:EUR/xbrli:shares" } }, "text_block_3557eee3-90c2-4cf3-82f4-caebbb1e9599": { "value": "Key management includes the following members of the Executive Committee: Chief Executive Officer, three Deputy Chief Executive Officers, Chairman of the Board and the Board directors.
The compensation paid to key management include Share based payments as well, which are reflected in Note\u00a028 Share- based payments.
\u00a0
The compensation paid or payable to key management for employee services is shown below:
(in EUR million) | As at 31\u00a0December, | |
|---|---|---|
2024 | 2023 | |
Salaries and other short-term employment benefits | 2.9 | 2.3 |
Post employment benefits | \u2212 | \u2212 |
Remuneration for the activity of the Board members | 0.4 | 0.4 |
Other long-term benefits | 1.5 | 0.8 |
Total | 4.8 | 3.4 |
(in EUR million) | 2024 | ||||
|---|---|---|---|---|---|
PWC | Deloitte | KPMG | Other | Total | |
Issuer | 0.7 | 0.7 | 0.7 | 0.1 | 2.2 |
Fully consolidated subsidiaries | 3.8 | 1.9 | 10.4 | 1.3 | 17.4 |
Audit services | 4.5 | 2.6 | 11.1 | 1.4 | 19.6 |
Non-audit related services \u2013 Issuer\u00a0 | 0.1 | 0.1 | 0.1 | 0.1 | 0.4 |
Non-audit related services \u2013 Fully consolidated subsidiaries | 0.1 | 0.3 | 0.7 | 0.3 | 1.4 |
Sustainability audit | 0.3 | \u2212 | 0.3 | \u2212 | 0.6 |
Total audit fees | 5.0 | 3.0 | 12.2 | 1.8 | 22.0 |
\u00a0 |
In 2024, non-audit services mainly consist of missions of provision of expertise and benchmarks, internal control reviews in the context of the compliance with ISAE (International Standard on Assurance Engagements) standards and extended audit procedures (agreed upon procedures and complementary audits).
\u00a0
\u00a0
(in EUR million) | 2023 | ||||
|---|---|---|---|---|---|
Ernst & Young | Deloitte | KPMG | Other | Total | |
Issuer | 1.3 | 0.7 | \u2212 | \u2212 | 2.0 |
Fully consolidated subsidiaries | 2.7 | 3.0 | 6.9 | 0.1 | 12.7 |
Audit services | 4.0 | 3.7 | 6.9 | 0.1 | 14.7 |
Non-audit related services \u00a0(1) | 0.2 | 0.1 | 0.3 | 0.3 | 0.9 |
Total audit fees | 4.2 | 3.8 | 7.2 | 0.4 | 15.6 |
|
\u00a0
No material events occurred after 31\u00a0December 2024 that require disclosure in accordance with IFRS, nor events affecting the financial position of the Group as at 31\u00a0December 2024 or the result for the period ended 31\u00a0December 2024.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEventsAfterReportingPeriodExplanatory", "language": "en", "entity": "scheme:969500E7V019H9NP7427", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } } } }