Features
19 Mar 21

Arval outperformed market in 2020

Arval was one of the few companies that had a great 2020. As its annual report for last year shows, not only did it manage to grow its income and fleet at healthy rates, it outperformed the market to such an extent that it became the European leader in full-service leasing. 

Some key figures:

Fleet size
Despite the pandemic, Arval’s leased fleet grew by 6.4% (compared to the end of 2019) to 1.38 million vehicles. 

  • The corporate financed fleet was up 3.5% to just over a million.
  • The retail segment grew by 15.7% to just under 347,000 units (of which 100,000 in private lease).
  • Mid-term rentals grew by 6% to just over 31,000 vehicles. 

Partnerships and acquisitions
Major partnerships were launched or renewed, including with:

  • Sixt (Germany, France, Netherlands, UK, Belgium),
  • CaixaBank (Spain and Portugal), and 

Arval also acquired the UniCredit Leasing Fuhrparkmanagement business from Unicredit Bank (Austria), strengthening its position in that country.

CSR
In 2020, Arval’s BEV orders grew at twice the rate of the overall market. In recognition of Arval’s efforts to respond to environmental issues, Arval was awarded platinum rating by EcoVadis, placing the company in the top 1% of its industry. 

Income
Gross operating income was up 3.5% to €1,373.6 million. Including the Greenval Insurance activity, the increase was even higher (5.8% to €1,436.2 million).

  • Lease contract margin rose by 4.4% to €626.3 million.
  • Lease service margin was down 1.6% to €588.6 million: vehicles were less on the road, hence required less service and maintenance. 
  • Lease service margin including Greenval Insurance activity was up by 3.5% to €651.3 million: vehicles were less on the road, hence less likely to sustain damages. 
  • Car sales result was up by 23.3% to €158.7 million, thanks to the increased demand for (and higher prices of) used cars.

Expenses
Operating expenses were up 1.3% to €735 million, but considering the ratio between operating expenses and average financed fleet size (which increased by a larger share), the efficiency actually increased by 5.9% to an operating expense of just €550 per unit.

Result

  • In all, the Arval Group’s operating result came to €578.4 million, up 2.4% over 2019. Including Greenval Insurance, the result was €636.5 (+7.6%).
  • The Group’s net income amounted to €471.4 million, down 0.6%; adding the results of Greenval Insurance, net income was up 3.9% to €518.6 million. 

Arval Beyond
Looking ahead, Arval presented Arval Beyond, its plan to adapt growth to the requirements of the future – based on four pillars:

  • 360° Mobility (mobility on top of cars);
  • Connected & Flexible (deploying technology for the benefit of customers); 
  • Arval Inside (strong partnerships); and
  • Good for You, Good for All (putting sustainability at the core of everything).

“In 2020, Arval showed the strength of its business model – thanks to its long-term leasing business model and its product, country and customer diversification,” said Arval CEO Alain Van Groenendael (pictured). “Arval is even stronger today and is leading the market in terms of performance, pioneering spirit and CSR commitments.”

Authored by: Frank Jacobs