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A Closer Look at Trends in Europe & Beyond. Tanguy van de Werve Director General, Leaseurope Bucharest, 18 October 2007. A Closer Look at Trends in Europe & Beyond. Agenda World markets in 2006 Leasing volumes and growth, in Europe and further a field Leasing’s contribution to the economy
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A Closer Look at Trends in Europe & Beyond Tanguy van de Werve Director General, Leaseurope Bucharest, 18 October 2007
A Closer Look at Trends in Europe & Beyond Agenda • World markets in 2006 • Leasing volumes and growth, in Europe and further a field • Leasing’s contribution to the economy • Market players • Asset types
World Markets in 2006 Canada CFLA 18.5 bio€ Europe Leaseurope 297.5 bio€ of which: Equipment Leasing 250.7 bio€ US ELFA 175.2 bio€ Japan JLA 53.5 bio€ Brazil ABEL 7.2 bio€ Australia AELA 17.2 bio€ New leasing volumes; source: Leaseurope 2006 Annual Survey and local leasing associations
New Leasing Volumes in Europe Total New Leasing Volumes Reported in Leaseurope Annual Surveys 297.5 bio€ CAGR: 10.9% 85.5 bio€ HP explicitly included from 2003, automotive long term rental members figures included (when available) in 2006
New Leasing Volumes in Europe Equipment & Real Estate CAGR: 10.63% CAGR: 11.01% RE 46.8 bio€ Equip 250.7 bio€ New Volumes 2006
New Leasing Volumes in Europe Equipment & Real Estate Low: 02 80.3% High: 97 86.7% Average Share of Equip 83.84% Average Share of RE 83.84%
New Leasing Volumes in Europe New Leasing Volumes per Cluster in 2006 UK 55.0 bio€
New Leasing Volumes in Europe New Leasing Volumes per Cluster in 2006 UK 55.0 bio€ Germany 50.4bio€
New Leasing Volumes in Europe New Leasing Volumes per Cluster in 2006 UK 55.0 bio€ Germany 50.4bio€ Italy 48.1 bio€
New Leasing Volumes in Europe New Leasing Volumes per Cluster in 2006 UK 55.0 bio€ Germany 50.4bio€ Italy 48.1 bio€ France 36.1 bio€
New Leasing Volumes in Europe New Leasing Volumes per Cluster in 2006 UK 55.0 bio€ Germany 50.4bio€ Italy 48.1 bio€ France 36.1 bio€ CEE 33.4 bio€
New Leasing Volumes in Europe New Leasing Volumes per Cluster in 2006 UK 55.0 bio€ Germany 50.4bio€ Italy 48.1 bio€ France 36.1 bio€ CEE 33.4 bio€ Benelux, CH, AT 28.8 bio€
New Leasing Volumes in Europe New Leasing Volumes per Cluster in 2006 UK 55.0 bio€ Germany 50.4bio€ Italy 48.1 bio€ France 36.1 bio€ CEE 33.4 bio€ Benelux, CH, AT 28.8 bio€ Med 28.8 bio€
New Leasing Volumes in Europe New Leasing Volumes per Cluster in 2006 UK 55.0 bio€ Germany 50.4bio€ Italy 48.1 bio€ France 36.1 bio€ CEE 33.4 bio€ Benelux, CH, AT 28.8 bio€ Med 28.8 bio€ Nordic 18.1 bio€
Growth in Europe Total New Volumes: Annual Growth Rates 2006: Lower RE growth Calculated based on a homogenous sample of members reporting in the previous year
Growth in Europe New Leasing Volume Growth per Cluster Annual growth rates calculated based on a homogenous sample of members reporting in the previous year
Growth in Europe Total Equipment Leasing Growth Annual growth rates calculated based on a homogenous sample of members reporting in the previous year
Growth in Europe Equipment vs Real Estate Leasing Growth Annual growth rates calculated based on a homogenous sample of members reporting in the previous year
Growth in Europe Equipment Leasing Growth in Europe Compared to the US Annual real growth rates, US data source: ELFA
Growth in Europe Equipment Leasing Growth in Europe Compared to the US and Japan Annual real growth rates, Japan data source: World Leasing Yearbook 2007 & JLA
Growth in Europe Equipment Leasing Growth in Europe Compared to the US, Japan & Australia Annual real growth rates, Australian data source: AELA, includes all types of equipment finance
Contribution to the European Economy Leasing Volumes as a % of GDP Leaseurope average, calculated as new leasing volumes from Leaseurope Annual Surveys divided by GDP from Eurostat for countries with available data
Contribution to the European Economy Leasing Growth Compared to Investment Growth EE DK CZ SI SK SE BE NL FI UK ES IT DE FR AT CH PT Investment = GFCF – investment in private dwellings; source: Eurostat
Contribution to the European Economy Leasing Growth Compared to Investment Growth PL Investment = GFCF – investment in private dwellings; source: Eurostat
Contribution to the European Economy Leasing Growth Compared to Investment Growth EE DK CZ SI SK SE BE NL FI UK ES IT DE FR AT CH PT Investment = GFCF – investment in private dwellings; source: Eurostat
Contribution to the European Economy CAGR (97-06) for Leasing Compared to Investment < Overall CAGR: 4.82% Overall CAGR: 8.94% Investment = GFCF – investment in private dwellings; source: Eurostat
European Leasing Penetration Average Leasing Penetration Source: Leaseurope data & investment figures from Eurostat; Incl. hp from 2003 & new LT members in 2006
European Leasing Penetration Average Leasing Penetration Source: Leaseurope data & investment figures from Eurostat; Incl. hp from 2003 & new LT members in 2006
European Leasing Penetration Average Leasing Penetration Source: Leaseurope data & investment figures from Eurostat; Incl. hp from 2003 & new LT members in 2006
European Leasing Penetration Country Level Penetration Rates (2006) 10% – 15%
Leasing Penetration Country Level Penetration Rates (2006) 15% – 20% 10% – 15%
Leasing Penetration Country Level Penetration Rates (2006) 20% – 25% 15% – 20% 10% – 15%
Leasing Penetration Country Level Penetration Rates (2006) > 25% 20% – 25% 15% – 20% 10% – 15%
Leasing Penetration Average Leasing Penetration in Europe vs US Source: ELFA
Leasing Penetration Average Leasing Penetration in Europe vs Canada Source: CFLA
Leasing Penetration Average Leasing Penetration in Europe vs Australia Source: AELA
European Market Players Short Term Evolution in Leasing Company Profile Based on homogenous sample of members reporting in all surveys, measured in terms of number of firms
European Market Players Short Term Evolution in Leasing Company Profile Based on homogenous sample of members reporting in all surveys, measured in terms of number of firms
European Market Players Short Term Evolution in Leasing Company Profile 2000: Bank Related: 33% Captive: 18% Independent: 32% 2006: Bank Related: 42% Captive: 16% Independent: 28% Based on homogenous sample of members reporting in all surveys, measured in terms of number of firms
European Market Players Concentration of European Leasing Companies # of firms % of tot market
European Market Players Concentration of European Leasing Companies # of firms % of tot market
European Market Players Concentration of European Leasing Companies # of firms % of tot market
European Market Players Concentration of European Leasing Companies # of firms % of tot market
Types of Asset on Lease New Leasing Volumes per Asset Category (2006) Non Auto Equip Cars 101.7 bil€ 34% 101.1 bil€ 34% 50% 50% RE CVs 47.9 bil€ 16% 46.8 bil€ 16% Source: Leaseurope 2006 Annual Survey. Includes data for Leaseurope’s new automotive long term rental members (when available)
Equipment Leasing New Equipment Leasing Volumes per Asset Category (2006) Total Equipment Volume: 250.7 bil€ Computers & Business Machines Machinery & Industrial Equip Road Transport Vehicles Ships, Rail, Plane, etc Passenger Cars Other
Equipment Leasing Category Growth 05/06 Asset Share 06 Computers & Business Machines Machinery & Industrial Equip Road Transport Vehicles Ships, Rail, Plane, etc Passenger Cars Other Growth calculated based on a homogenous sample of members reporting in the previous year
Equipment Leasing Category Growth 05/06 Asset Share 06 16.25 Machinery & Industrial Equip 8.78 Ships, Rail, Plane, etc Computers & Business Machines 3.23 Passenger Cars 2.73 17.54 Road Transport Vehicles Computers & Business Machines Machinery & Industrial Equip Road Transport Vehicles Ships, Rail, Plane, etc Passenger Cars Other
Equipment Leasing Category Growth 05/06 Category Growth 04/05 16.25 Machinery & Industrial Equip Machinery & Industrial Equip Ships, Rail, Plane, etc 23.34 6.97 8.78 Computers & Business Machines Computers & Business Machines Ships, Rail, Plane, etc 3.23 3.10 Passenger Cars 17.54 2.73 Road Transport Vehicles Passenger Cars 9.02 18.38 Road Transport Vehicles Growth calculated based on a homogenous sample of members reporting in the previous year
Equipment Leasing Cluster Specialisation (2006) Other Types of Equip Passenger Cars Machinery & Industrial Equip Road Transport Vehicles Computers & Business Machines Ships, Plane, Rail, etc
Equipment Leasing Short Term Evolution of Client Categories Other client categories Consumers Public Sector Services Industry & Construction Agriculture, Forestry, Fishing