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 Leasings contribution to the economy Market players Asset types

World Markets in 2006

Canada CFLA

Europe
Leaseurope

18.5 bio
US
ELFA

297.5 bio of which: Equipment Leasing Brazil ABEL Japan JLA

175.2 bio

250.7 bio

53.5 bio
Australia AELA

7.2 bio

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
300

297.5 bio

250

CAGR: 10.9%

200

Billions of

150

85.5 bio
100

50

0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

HP explicitly included from 2003, automotive long term rental members figures included (when available) in 2006 4

New Leasing Volumes in Europe

Equipment & Real Estate
300,000

CAGR: 10.63%
250,000

200,000

CAGR: 11.01%

Billions of

150,000

100,000

50,000

RE 46.8 bio
Equip 250.7 bio

New Volumes 2006

0 1994 1996 1998 2000 2002 2004 2006

Equipment

Real Estate

New Leasing Volumes in Europe

Equipment & Real Estate
300,000

Low: 02 80.3%

250,000

High: 97
86.7% Average AverageShare Share of of Equip RE

200,000

Billions of

150,000

83.84% 83.84%

100,000

50,000

0 1994 1996 1998 2000 2002 2004 2006

Equipment

Real Estate

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

10

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

11

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

12

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

13

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
14

Growth in Europe
Total New Volumes: Annual Growth Rates
18% 16.50% 16% 14% 12% 10% 7.92% 8% 6% 4% 2% 1995 1996 1997 1998 1999 2000 2001 2002 2003 8.35% 7.23% 6.89% 15.24% 13.47% 12.84% 11.69% 10.66% 11.62%

2.71%

2006:
2004 2005 Lower RE 2006 growth

Calculated based on a homogenous sample of members reporting in the previous year

15

Growth in Europe
New Leasing Volume Growth per Cluster
Nordic CEE Benelux, AT & CH Mediterranean Italy France UK Germany
-5% 0%

3,57% 38,62% 6,87% 13,61% 8,94% 4,33% -2,50% 2,58%

5% 10% 15% 20% 25% 30% 35% 40% 45%

2004/2005

2005/2006
16

Annual growth rates calculated based on a homogenous sample of members reporting in the previous year

Growth in Europe
Total Equipment Leasing Growth
30% 25% 20%
15.29%

15% 10% 5% 0% -5% -10%

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2.49% 7.20%

Equipment
Annual growth rates calculated based on a homogenous sample of members reporting in the previous year 17

Growth in Europe
Equipment vs Real Estate Leasing Growth
30.04%

30% 25% 20% 15% 10%

5.61%

5% 0% -5% -10%
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 -8.73%

Equipment

Real Estate
18

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
30% 25% 20% 15% 10% 5% 0% -5% -10% -15% 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 -12.55% 8.37%

15.64%

Europe
Annual real growth rates, US data source: ELFA

US
19

Growth in Europe
Equipment Leasing Growth in Europe Compared to the US and Japan
30% 25% 20% 15% 9.94% 10% 5% 0% -5% -10.02% -10% -15% 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Europe

US

Japan
20

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
30% 27.65% 25% 20% 15% 10% 5% 0% -5% -7.39% -10% -15% 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 3.61%

Europe

US

Japan

Australia
21

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
3,00%

2,50%

2,00%

1,50%

1,00%

0,50%

0,00% 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Leaseurope average, calculated as new leasing volumes from Leaseurope Annual Surveys divided by GDP from Eurostat for countries with available data 22

Contribution to the European Economy

Leasing Growth Compared to Investment Growth
Investment growth 05/06
30%

EE
25% 20% 15% 10% 5% 0% -5% -5%

DK SE BE

CZ FI

SI SK ES

UK DE
0%

NL
IT CH
10%

FR AT
5%

PT
15% 20% 25% 30% 35%

New leasing growth 05/06

Investment = GFCF investment in private dwellings; source: Eurostat 23

Contribution to the European Economy

Leasing Growth Compared to Investment Growth
Investment growth 05/06
30% 25%

PL
20% 15% 10% 5% 0% -5% -5%

0%

5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% New leasing growth 05/06

Investment = GFCF investment in private dwellings; source: Eurostat

24

Contribution to the European Economy

Leasing Growth Compared to Investment Growth
Investment growth 05/06
30%

EE
25% 20% 15% 10% 5% 0% -5% -5%

DK SE BE

CZ FI

SI
R = 0.3015
2

SK

UK DE
0%

NL
ES IT CH
10%

FR AT
5%

PT
15% 20% 25% 30% 35%

New leasing growth 05/06

Investment = GFCF investment in private dwellings; source: Eurostat 25

Contribution to the European Economy

CAGR (97-06) for Leasing Compared to Investment
30% 25% 20% 15% 10% 5% 0%
AT BE CH CZ DE DK EE ES FI FR HU IT NL NO PL PT SE SI SK UK

Overall CAGR: 4.82%

<

Overall CAGR: 8.94%

Investment = GFCF investment in private dwellings; source: Eurostat

GFCF

New Leasing Vol

26

European Leasing Penetration

Average Leasing Penetration
29%

24% 19.02% 19% 14.83% 14% 11.89% 12.50% 13.02% 15.08% 17.25%

9%

4% 2000 2001 2002 2003 2004 2005 2006

Total PR
Source: Leaseurope data & investment figures from Eurostat; Incl. hp from 2003 & new LT members in 2006 27

European Leasing Penetration

Average Leasing Penetration
28.43% 29% 24.30% 24% 20.23% 19.02% 19% 16.06% 14.83% 14% 11.89% 12.50% 13.02% 17.67% 17.35% 15.08% 17.25% 21.64%

9%

4% 2000 2001 2002 2003 2004 2005 2006

Total PR

Equip
28

Source: Leaseurope data & investment figures from Eurostat; Incl. hp from 2003 & new LT members in 2006

European Leasing Penetration

Average Leasing Penetration
28.43% 29% 24.30% 24% 20.23% 19.02% 19% 16.06% 14.83% 14% 11.89% 12.50% 13.02% 17.67% 17.35% 15.08% 17.25% 21.64%

9% 4.75% 4% 2000 2001 2002 2003 2004 4.87% 5.62% 5.51% 4.97%

6.32%

6.14%

2005

2006

Total PR

Equip

RE
29

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%

30

Leasing Penetration
Country Level Penetration Rates (2006)

15% 20%
10% 15%

31

Leasing Penetration
Country Level Penetration Rates (2006)

20% 25% 15% 20%

10% 15%

32

Leasing Penetration
Country Level Penetration Rates (2006)

> 25%

20% 25% 15% 20%

10% 15%

33

Leasing Penetration
Average Leasing Penetration in Europe vs US
39% 34% 29% 24% 19% 14% 9% 4% 2000 2001 2002 2003 2004 2005 2006 16.06% 17.67% 17.35% 20.23% 33.10% 31.00% 31.00% 28.90% 27.60% 21.64% 27.70% 24.30% 27.70% 28.43%

Europe
Source: ELFA

US
34

Leasing Penetration
Average Leasing Penetration in Europe vs Canada
39% 34% 28.43% 29% 24% 19% 14% 9% 4% 2000 2001 2002 2003 2004 2005 2006 16.06% 17.67% 17.35% 21.64% 20.23% 22.90% 24.30% 24.90% 25.90%

Europe
Source: CFLA

US

Canada
35

Leasing Penetration
Average Leasing Penetration in Europe vs Australia
41.82% 39% 34% 29% 24% 19% 14% 9% 4% 2000 2001 2002 2003 2004 2005 2006 16.06% 17.67% 17.35% 21.64% 20.23% 24.30% 38.98% 38.35% 36.41% 33.91% 28.43% 39.32% 37.43%

Europe
Source: AELA

US

Canada

Australia
36

European Market Players

Short Term Evolution in Leasing Company Profile
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2000 2001 2002 2003 2004 2005 2006 32% 33% 31% 30% 30% 29% 29% 18% 18% 14% 18% 16% 16% 16% 28% 27% 32% 29% 34% 37% 37% 4% 4% 4% 5% 4% 5% 5%

Indep

Captive

Bank Owned

Bank
37

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
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2000 2001 2002 2003 2004 2005 2006 32% 33% 31% 30% 30% 29% 29% 18% 18% 14% 18% 16% 16% 16% 28% 27% 32% 29% 34% 37% 37% 4% 4% 4% 5% 4% 5% 5%

Indep

Captive

Bank Owned

Bank
38

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
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2000 2001 2002 2003 2004 2005 2006 18% 18% 28% 27% 32% 29% 34% 37% 37% 4% 4% 4% 5% 4% 5% 5%

2000:
Bank Related: 33% Captive: 18% 32% 33% Independent: 32%

14%

18%

16%

16% 2006:

16%

Bank Related: 42%

31% 30% 30%

Captive: 16% 29%

29%

Independent: 28%

Indep

Captive

Bank Owned

Bank
39

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
50

40

30

20

10

0 0% 10% 20% 2001 30% Ref Line 40% 50% 60%

% of tot market
40

European Market Players

Concentration of European Leasing Companies
# of firms
50

40

30

20

10

0 0% 10% 20% 30% 2001 2003 40% 50% 60%

% of tot market
41

European Market Players

Concentration of European Leasing Companies
# of firms
50

40

30

20

10

0 0% 10% 20% 2001 30% 2003 40% 2005 50% 60%

% of tot market
42

European Market Players

Concentration of European Leasing Companies
# of firms
50

40

30

20

10

0 0% 10% 20% 2001 30% 2003 2005 40% 2006 50% 60%

% of tot market
43

Types of Asset on Lease

New Leasing Volumes per Asset Category (2006)
Cars Non Auto Equip 101.1 bil 34%

101.7 bil
34%

50% 50%
CVs 47.9 bil 16% RE 46.8 bil 16%

Source: Leaseurope 2006 Annual Survey. Includes data for Leaseuropes new automotive long term rental members (when available)

44

Equipment Leasing
New Equipment Leasing Volumes per Asset Category (2006)
6% 5% 21%

8% 41% 19%
Computers & Business Machines

Total Equipment Volume: 250.7 bil

& Industrial Equipment Road Transport Machinery Vehicles Ships, Rail, Plane, etc Computers & Business Machines Passenger Cars Other Road Transport Vehicles

Machinery & Industrial Equip

45

Equipment Leasing
Asset Share 06
6% 5% 21%
10%

Category Growth 05/06

20%

8% 41% 19%
Computers & Business Machines

0%

Road Transport Vehicles Machinery & Industrial Equipment Computers & Business Machines Passenger Cars Other Road Transport Vehicles Growth calculated based on a homogenous sample of members reporting in the previous year

Machinery & Industrial Equip Ships, Rail, Plane, etc

46

Equipment Leasing
Asset Share 06
6% 5% 21%
10%

Category Growth 05/06

16.25
Machinery & Industrial Equip
20%

8.78
8% 41% 19%
Computers & Business Machines Road & Transport Vehicles Machinery Industrial Equipment Computers & Business Machines Passenger Cars Road Transport Vehicles
Ships, Rail, Plane, etc
0%

Computers & Business Machines 3.23

Passenger Cars

2.73
Road Transport Vehicles

17.54

Machinery & Industrial Equip Ships, Rail, Plane, etc Other

47

Equipment Leasing
Category Growth 05/06
16.25
20%

Category Growth 04/05

20%

Machinery & Industrial Equip Ships, Rail, Machinery & Industrial Equip 10% 6.97 Plane, etc
Computers & Business Machines 3.10

10%

23.34
Computers & Business Machines 3.23

8.78
Ships, Rail, Plane, etc
0%

0%

Passenger Cars

2.73

Road Transport Vehicles

17.54
Passenger Cars

9.02

18.38
Road Transport Vehicles

Growth calculated based on a homogenous sample of members reporting in the previous year

48

Equipment Leasing
Cluster Specialisation (2006)
Germany
9% 3% 15%

UK
5% 10% 11%
9%
38%

France
12%
1% 24%

Italy
11%

19% 48%

13%
15% 49%

11%

49%
24%

18% 4%

Mediterranean
5% 13% 28%

Benelux, AT & CH
4% 4% 14% 9%

CEE
4% 4%
2%

Nordic
8% 19%

25%

33%
3% 30%

2%

13% 34%

16% 53%

21%

31%

23%

Passenger Cars Road Transport Vehicles

Machinery & Industrial Equip Computers & Business Machines

Other Types of Equip

Ships, Plane, Rail, etc 49

Equipment Leasing
Short Term Evolution of Client Categories
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2006 2005 2004 2003 29% 27% 27% 22% 44% 44% 45% 47% 16% 4% 15% 5% 16% 16% 5% 4%

Other client categories Consumers

Public Sector
Services Industry & Construction Agriculture, Forestry, Fishing

50

Real Estate Leasing

Cluster Specialisation (2006)
Germany
15%

UK
1%

France
14%

Italy

49%

51%

85%

99%

86%

Mediterranean
21%

Benelux, AT & CH
6%

CEE
8%

Nordic
1%

79%
94%

92%

99%

Equipment

Real Estate

51

Real Estate Leasing

Type of Building Leased in 2006
28%
28%
Industrial Buildings Retail Outlets

Total Real Estate Volume: 46.8 bil

14%
Other Buildings

26%
2%
Utilities

7%
Hotels & Leisure

Office Buildings

52

Focus on Vehicles
In 2006, new Leaseurope membership base brings additional weight in the automotive sector
Vehicles financed/purchased

All
# (mil) (bil)
6,2 115,4 0,9 21,4 0,7 27,9 7,7 164,7

Portfolio/fleet

All
# (mil) (bil)
12,3 256,3 2,1 40,5 1,5 60,2 15,9 357,0
Based on figures reported in the 2006 Annual Survey & Leaseurope estimates; includes figures from short term 53 rental associations except for fleet value ()

Passenger Cars
Leaseurope PCs as % of New Registrations
70% 60%

50%

Leaseurope Average: 35.5%

40%

30%

20%

10%

0% AT BE CH CZ DE DK ES FI FR GR HU IT LU NL NO PL PT SE SI SK UK

New cars bought or financed (used cars excluded, all product types together) compared to new PC registrations 54 taken from ACEA

Passenger Cars
Leaseurope PC Fleet as % of Country Fleet
18% 16% 14% 12% 10% 8% 6% 4% 2% 0% AT BE CY CZ DE DK EE ES FI FR GR HU IT LT LU LV NL PL PT SL SK UK

Leaseurope Average: 6.5%

Leaseurope fleet 06 as share of total fleet (05) taken from ECs EU Energy & Transport in Figures

55

A Closer Look at Trends in Europe & Beyond

Tanguy van de Werve Director General, Leaseurope Bucharest, 18 October 2007