ALD | LeasePlan has released its new “PowerUP 2026” strategic plan.
“PowerUP 2026” strategic plan
The “PowerUP 2026” strategic plan follows the recent closing of the LeasePlan acquisition on 22 May 2023, which established ALD | LeasePlan’s leadership position in the mobility sector, well ahead of the ambitions stated in the previous strategic plan, “Move 2025”.
With “PowerUP 2026”, ALD | LeasePlan will leverage on the power of leadership to shape the future of mobility and achieve excellence, by executing a strategic plan articulated around 4 priorities: clients, operational efficiency, responsibility and profitability.
Clients
ALD | LeasePlan plans to launch a new brand by the end of the year, to create a powerful new identity from two highly reputed industry players.
A one-stop shop with the broadest client reach, geographical coverage and the largest distribution capabilities through more than 430 partnerships, ALD | LeasePlan is best placed to answer customers’ changing needs.
ALD | LeasePlan expects that its earning assets will grow strongly by +6% CAGR between 2023 and 2026, driven by higher-value vehicles (underpinned by the rising share of EVs in the funded fleet) and selective growth strategy to meet the Group’s profitability targets.
Furthermore, the objective of reaching 200,000 active users of its MaaS platform, launched in 2022, by 2026, reflects its strong ambition to lead the transition to sustainable mobility and go beyond electrification, into MaaS.
Operational efficiency
With “PowerUP 2026”, ALD | LeasePlan will build the most efficient scalable global operating platform and derive cost synergies from efficiency improvements in the operating processes, IT cost savings as well as direct spend savings, including on real estate. As an illustration, IT cost per vehicle would be reduced by c. 20%, while fleet / FTE ratio would improve by 15% in 2026 compared to 2022. By 2026, ALD | LeasePlan will improve its Cost / Income ratio (excluding Used Car Sales results) to best-in-class level of c. 52%, from 56% in 2022.
Responsibility
ESG and risk management are at the core of ALD | LeasePlan’s strategy and drive every one of the Group’s actions.
ALD | LeasePlan will continue leading the way to sustainable mobility by always advising its clients about the greenest way. As a result, it targets EVs to attain 50% of new car registrations by 2026, a strong increase from 28% in 2022. By providing end-to-end solutions, the Group makes it simple for clients to choose electric and targets that 400,000 drivers will connect to its eMSP joint venture with ChargePoint, to be launched by the end of 2023.
Profitability
The combination of ALD and LeasePlan is highly synergetic. With “PowerUP 2026”, ALD | LeasePlan targets to achieve 13% to 15% Return on Tangible Equity (ROTE) by 2026, a level at the high end of the financial sector. High capital generation will contribute to a robust capital position, with target Core Equity Tier 1 (CET 1) ratio at c. 12%. Furthermore, ALD | LeasePlan targets a dividend payout ratio of 50% throughout the 2023-2026 period, thus providing attractive returns to shareholders.
Further details around ALD | LeasePlan’s strategic targets were presented on 21 September 2023, when ALD | LeasePlan held its Capital Markets Day.