Ayvens (AYV) H1 2024 earnings summary

Executive summary

• Net income group share was €189 million in Q2 2024, stable sequentially but down 22.9% year-over-year, reflecting normalization in used car markets and higher operating expenses.

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

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

• Focus on profitable growth, sustainable mobility, and responsible EV asset management throughout the vehicle lifecycle.

• Gross operating income for Q2 2024 was €776 million, a 4.1% decrease year-over-year.

Financial highlights

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

• Used car sales result per unit at €1,480 in Q2 2024, down from earlier in the year; including all impacts, stable at €575.

• Underlying cost-to-income ratio improved to 61.9%, a 6 percentage point improvement; operating expenses down 2.9% quarter-on-quarter.

• Net income group share reached €189 million; return on tangible equity at 9.6%.

• Earning assets grew 9.5% year-on-year to €53.2 billion; funded fleet up 0.8% year-on-year.

Outlook and guidance

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

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

• Commercial strategy shifting to reignite fleet growth, with margin guidance unchanged for the full year.

• Earning assets growth expected between 7% and 9% for FY 2024.

• Dividend payout ratio of 50% and CET1 ratio guidance of ~12%.