Initial Public Offering

The IPO confirms the strategic nature of ALD within Societe Generale group. It will allow ALD to accelerate its development and become a leader in a rapidly changing mobility space.

Frédéric Oudéa, Chief Executive Officer of Societe Generale

A successful market floatation

On 5 June 2017, Societe Generale announced the launch of the initial public offering of ALD, its full service leasing and fleet management subsidiary, on the regulated market of Euronext Paris.
Societe Generale plans to sell a 20% stake in ALD, representing 80.8 million shares, up to 23%(1), or 92.9 million shares, in case of exercise of the 15% over-allotment option granted to the stabilizing agent. Societe Generale will remain the controlling shareholder of ALD and reaffirms its long-term support to its subsidiary.

The IPO is intended to enable the Group to gain visibility and reputation in the mobility ecosystem as well as to access to new means of financing and to increase its capacity to accelerate its development and to seize new growth opportunities in both the corporate and private individuals markets.

Leveraging its leadership position in fleet management services, ALD has strong ambitions in the mobility sector, which is experiencing significant changes both in terms of new usage (electric cars, car sharing, autonomous cars, etc.) and development in the private lease segment. ALD anticipates the development of a broad ecosystem including all mobility solutions, in which it intends to play a central role in terms of innovation.

The IPO is expected to enable ALD to accelerate its development in an evolving competitive landscape which requires speed and agility.

We believe the business is strongly positioned to meet the challenges of the rapidly evolving mobility market. Operational and financial efficiency driven by an innovative culture is part of our DNA. We move forward by leveraging on these strengths to ensure that ALD Automotive will continue to lead the change in our industry.

Mike Masterson, ALD International Chief Executive Officer

Guidance for 2017

ALD is a dynamic player in the mobility sector. Its strong growth ambitions are reflected in its guidance for 2017:

  • Total fleet is expected to grow around 8% compared to 2016
  • Total income expected to grow around 8% versus 2016 reported Total income
  • Net income expected to grow around 10% versus 2016 reported Net income
  • Return on Average Earning Assets expected to be between 3.5% and 4%, and Return on Equity expected to be between 15% and 17%
  • Leverage and shareholder return targets consistent with capital generation and total asset growth, with the objective to maintain BBB rating:
    - Equity / Total Assets ratio stable between 15% and 17%
    - Target pay-out ratio between 35% and 40%

Outlook for 2016-2019

  • Total fleet is expected to grow annually at approximately 8%-10% on average
  • Services and financial margins expected to grow by 8-10% per annum on average throughout the period, with an expected decreasing contribution of Remarketing within Total Income by 2019
  • Net income expected to grow around 7% per annum on average, this evolution being driven by fleet growth, a strong focus on efficiency, resilient margins and a normalization of the remarketing income
  • Return on Average Earning Assets expected to be above 3.5% throughout the period, consistent with its performance through the cycle
  • Leverage and shareholder return targets consistent with capital generation and total asset growth over the period, with the objective to maintain BBB rating:
    - Maintain Equity / Total Assets ratio stable between 15% and 17%
    - Target pay-out ratio between 35% and 40%