4 TW Leaseurope Nov 2012

8/12/2019 4 TW Leaseurope Nov 2012

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Leasing to European SMEs

ALB | November 2012

Tanguy van de Werve

Leaseurope Director General


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2

USELFA

154 bil

Leaseurope

232 bil

Japan

JLA

41 bil

New equipment leasing volumes. ELFA figures do not include passenger car leasing

Source: Leaseurope 2011 Annual Survey, local leasing associations, Leaseurope estimates

Brazil

ABEL

7 bil

Australia

AELA & AFLA

16 bil

Global Equipment Leasing Markets in 2011

Canada

CFLA

27 bil

China

CLBA

106 bil

11%

1%

-28%

13%

16%

100%

16%


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3Source: Leaseurope 2011 Annual SurveyAnnual growth rates based on a homogenous sample of members reporting in Leaseuropes

2011 Annual Statistical Enquiry and are adjusted for exchange rate fluctuations

Evolution of new business by country

New business, annual % change (2011/2010)

Non - members

20% to 30%

30% and higher

- 20% to -10%

10% to 20%

NA

-10% to 0%

- 20% and lower

0% to 10%

European Leasing Market in 2011


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Regional performance by movable asset category

New business growth - annual % change (2011/2010)

Growth rates are calculated based on a homogenous sample of members reporting & are adjustedfor exchange rate fluctuationsSource: Leaseurope 2011 Annual Survey* The category Other for IT includes some renewable energy assets

15%12%

15%

-

10%

-36%

5%

18%26%

10%

13%

4%

-25%

-13%

-24%

16%

4%

15%8%

14%

3%

-12%

16%13%

18%

-60%

-40%

-20%

0%

20%

40%

60%

80%

Machines & Equip ICT Vehicles Big/Other

18%

-6%-2%

DE UK FR IT* MED. Benelux,

AT,CHCEE Nordic,

Baltic

-30%

-40%

33%

64%

-29%



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H1 2012New volumes*

119 bil

Source: Leaseurope Member Associations

*28 member associations reporting; growth rates adjusted for exchange rate fluctuations

H1 2012/11 %

-1.0%

NA

0% to 10%

10% to 20%

-20% and lower

-10% to 0%-20% to -10%


20 % to 30%

30% and higher


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The use of leasing amongstEuropean SMEs

With the support of A report prepared for


7/17Leaseurope

Lack of data at European level on SMEs use of leasing:

Research on leasing to SMEs

- European Central Bank Finance Surveycovers SMEs but doesnt focus on

leasing on its own, and only covers Eurozone countries

- European Commissions Flash Barometerright scope but out-of-date (pre-crisis)

- Leaseurope Annual Statistical Enquirydetailed information on European leasing

market, however no split by firm size

- National data sourcesfew; not directly comparable

This research establishes evidence at European level on the importance ofleasing to SMEs as a source of financing their investment

Based on a unique survey of ~3 000 firms by telephone in 8 countries (DE, FR,UK, IT, ES, NL, PL and SE),across 9 sectors

The survey was carried out in July 2011

Leasing defined in the broadest sense: right to use an asset for a period of time

Rationale for the research


8/17Leaseurope

How important leasing is to European SMEs- How many SMEs use leasing?

- How intensively do they use leasing to finance

investment?

- What is the size of the SME leasing market?

What assets do SMEs lease and throughwhich channels?

Why do SMEs lease (or not lease more)?

About the role leasing play in driving SME

investment and growth

- Lessees invest more

- Leasing enables SMEs to expand

- Economic impact of more SME leasing

Details on how to obtain your copy can be found on the SMEreport page of www.leaseurope.org

What does the report tell us?


9/17Leaseurope

In comparison

6 million SMEsused

leasing in the

8 countries sampled

100 billionof

SME investment

in fixed assets was

financed through

leasing

This represents 52%

of the business

leasing market

in Europe &

45% of the total

leasing market

the European Investment Bank provided10 bn in direct SME loans through banks63,000 SMEs supported

SME Guarantee Facility of the European Investment Fund (EIF) supported1.2 bnin direct loans to SMEs20,000 SMEs supported

EIF invested930 milin 42 equity and mezzanine funds as SME support

Venture and enterprise capital helped finance 16,700 SMEsin Europe between 2007and 2010, totalling46.5 bnaccording to the European Venture Capital Association

2010

European SME investment through leasing


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40%

0%

5%

10%

15%

20%

25%

30%

35%40%

45%

50%

Person

alfunds

Retaine

dea

rnin

gs

Leasing

Loan

>3yrs

Bank

ove

rdraft

Trad

eCr

edit

Loan

3 years

- Use of leasing increases with SME size

- Micros generally make less use of all forms

of external finance


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31.2% 28.3%

15.5% 13.8%

36.7% 39.4%

18.6%16.7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2010 2011

Cash Bank loansLeasing Other

Investment finance in 2010 and 2011 - all SMEs

Proportion of investment financed by:

Source : Oxford Economics/EFG

/Equitydebt

Loans of < 3 years

Loans of > 3 years

Short term credit

(incl. overdrafts,

credit cards)

Leasing as a share of SME investment

At EU level, leasing was responsible for financing just over100 billion of SME investmentin fixed assets in 2010 (112.5 billion expected in 2011)

The share of SME investment financed by leasing is set to increase from 16.7% in 2010 to18.6% in 2011. By contrast the share of all forms of bank lending taken together (loans,

overdrafts, etc.) was 31% in 2010 and is expected to decrease in 2011


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Through which channels do SMEs access leasing?

0%

10%

20%

30%

40%

50%

60%

70%

80%

Micro Small Medium SME Average

Vendor Bank

Lessor Brokers

Proportion of lessees using each channel by firm size,

2010


The most important channel for accessing leasing is the vendor or point of salechannelproviding clients with a one stop shop for assets and financing solutions:

- 67% of lessees used the vendor channel in 2010

- 58% accessed leasing through a banking channel

- 36% accessed directly from the lessor


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Leaseurope

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

Miningand

Utilities

M

anufacturing

RealEstate

Construction

Average

Hotelsand

Restaurants

Agriculture

Distribution

Transportand

Storage

Professional

Services

Lessees

Non-users

SME investment by lessees and non-usersm


0

100

200

300

400500

600

700

800

900

1000

Micro

Small

Medium

Allfirms

Lessees

Non-users

EU investment spending by enterprise size thousands, 2010


Lessees invest more

On average, lessees invest 53% more than non-users of leasing. This trend also

holds across sectors (except agriculture) and countries.- Difference between lessees & non-users especially pronounced amongst small firms -

small firms who leased in 2010 reported investing an average of302 000, i.e. over

100 000 more than non-users.

- Small lessees in particular may invest more than non-users because they are taking

advantage of one of the few external financing options available to firms of that size.


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Leaseurope

Macro-economic contribution:

BaselineOxford Economics forecasts for GDPgrowth from 2010 onwards, assuming PR kept

at 2010 rates.

Scenario 1Impact of firms leasing at 2011 PR

vs 2010 PR

What would the impact on potential output of a

permanent shift to 2011 PR levels be?

Scenario 2micro firms increase leasing to

small firm PR

Micro firms currently finance 10% of

investment via leasing. What if they increase

this to 16.7% (small firmsPR), but keep other

investment constant?

Scenario 3Leasing boom

Assumes all categories of firm increase PR

from 2011 levels by the same amount as

whole economy PR fell 2008-2010. This is the

most ambitious scenario.

12.75

12.80

12.85

12.90

12.95

13.00

13.05

13.10

Baseline - 2010

Penetration

rates

Scenario 1 -

2011

penetration

rates

Scenario 2 -

higher micro

leasing

Scenario 3 -

leasing boom

Source : Oxford Economics

Potential output under leasing scenarios in 2020trn, 2010 prices, total for FR, DE, IT, NL, PL, ES, SE and UK

+1.5% on level of GDP

Or

+200bn+ 0.9 to 1.0% on level of GDP

or

+100bn each

Macro-economic contribution of increased leasing PR


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Leasing to European SMEs

ALB | November 2012

Tanguy van de Werve

Leaseurope Director General

Documents

4 TW Leaseurope Nov 2012