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INVESTOR
PRESENTATION
Turin
June 24, 2020
Investor Presentation 24/06/2020 | 2
FCA BANK
GROUP
OVERVIEW
Investor Presentation 24/06/2020 | 3
FCA Bank: a JV between FCA and Crédit Agricole
FCA Bank is one of the largest specialized auto finance and lease companies operating in
Europe, diversified across products, geographies and brands
50 / 50 Joint Venture between Fiat Chrysler Automobiles and Crédit Agricole
Long-Term Partnership signed in December 2006 and extended until December 2024
The agreement will be automatically renewed unless notice of non-renewal is provided no later
than three years before end of the term
A unique business model, focusing on the automotive industry and combining the commercial
effectiveness of an industrial partner, with the risk discipline and financial strength of a
universal banking group
FCA Bank operates under the Italian Banking Act and is supervised by the European Central
Bank as a "significant" financial institution for prudential purposes, within the framework of the
Crédit Agricole Group
Board Composition: 10 members (2 independent, 4 appointed by each shareholder)
Investor Presentation 24/06/2020 | 4
JV Agreement Extension
Investor Presentation 24/06/2020 | 5
Ratings
Long-term: Baa1
Outlook: Negative
Short-term: P-2
Deposits long-term: Baa1
(Stable outlook)
Long-term: BBB
Outlook: Negative
Short-term: A-2
Long-term: BBB+
Outlook: Negative
Short-term: F1
Strengths:
low stock of problem loans;
good profitability;
sound capital;
matched maturities;
affiliate support from CréditAgricole;
Challenges:
mono-line business model;
wholesale funding profile mitigated by Crédit Agricole’ssupport;
Strengths:
strong profitability, supporting capital;
strategically important to French banking group CréditAgricole SA;
high geographic diversification;
Challenges:
business concentration on car sales financing in Europe and dependence on FCA;
Strengths:
Crédit Agricole’s high propensity to provide funding and sufficiently diversified funding sources;
adequate capitalization;
no direct exposure to Italian sovereign risk;
Challenges:
significant influence that FCA has on FCA Bank;
Investor Presentation 24/06/2020 | 6
FCA Bank – History
Partnership
with Jaguar
Land Rover in
9 European
countries
Renewal of the JV
between Fiat
Group
Automobiles (now
FCA Italy) and
Crédit Agricole
Consumer
Finance
Agreement
with
Maserati
and
creation of
Maserati FS
JV between
Fiat Auto SpA
& Crédit
Agricole
Consumer
Finance
Partnership
with Chrysler
for the brands
Chrysler and
Jeep in
Europe
Renewal of the
Partnership
with Jaguar
Land Rover in 8
European
countries
Creation of
FCA Bank
Agreement
with Erwin
Hymer Group
(motorhomes
and
caravans) in
Europe
Agreement
with Ferrari
for a
Financial
Services JV
in Europe
Full Service
Leasing &
New Mobility
International
development
and Leasys
“Rental
Pole”
April
1925
July
2008
October
2009
October
2013
November
2016
July
2015
January
2015
November
2013
Renewal with
Jaguar Land
Rover (8 EU)
& Agreement
with Aston
Martin &
Morgan (EU)
Q1
2018
Q2
2018
Agreement
with
Dodge and
RAM in
Europe
Q4
2018
Agreement
with Harley-
Davidson
January
2009September
2013
December
2006
March - April
2007
Renewal of
the JV
between
FCA Italy
and Crédit
Agricole
Consumer
Finance
July
20192017
Investor Presentation 24/06/2020 | 7
Banking business - Wholesale Financing
Banking business - Retail Financing
Mobility business - Rental
Portfolio 2019 (EoP): €16.9Bn (61% of total)
Portfolio 2019 (EoP): €7.1Bn (26% of total)
Portfolio 2019 (EoP): €3.5Bn (13% of total)
18 Brands – 18 Countries
28 Legal entities – 10 Branches
2,280 Employees
27.5 €/Bn Portfolio 2019
Multi-Brand and Multi-Business
Business Overview
Investor Presentation 24/06/2020 | 8
Outstanding by Business Line End of Period (End of Period)
10.8 10.3 9.5 9.8 10.0 11.013.0 14.4 15.8 16.9
3.7 4.13.7 3.9 4.0
4.8
6.0
7.3
8.2 7.1
1.6 1.51.3 1.3 1.3
1.4
1.7
2.2
2.8 3.5
16.1 15.914.5 15.0 15.3
17.2
20.7
23.9
26.8 27.5
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Retail Dealer Financing Rental
(€/Bn)
FCA Brands currently accounting for ~ 80% of FCA
Bank average total portfolioItaly48%
Germany18%
France8%
UK8%
Spain6%
Other12%
2019
Investor Presentation 24/06/2020 | 9
Commercial Performance – All Brands
6.75 6.657.81 7.63
9.57
11.61 12.0513.25 13.7331.0%
33.9%
39.7%42.2%
45.6% 46.8%43.3%
47.1% 48.1%
2011 2012 2013 2014 2015 2016 2017 2018 2019
Financed Volumes (€/Bn) & Penetration (%)
Passenger Cars + LCVs
2019 FY Penetration (%) by market
48.1%
50.8%
54.6%
44.1%
54.0%
47.2%
35.2%
50.7%
26.4%
44.3%
32.6%
48.7%
30.6%
48.1%
FCA BANK
ITALY
GERMANY
FRANCE
UK
SPAIN
SWITZERLAND
AUSTRIA
BELGIUM
PORTUGAL
NETHERLANDS
DENMARK
POLAND
GREECE
Total Penetration
467 441 494 508605
709 696 731 737
2011 2012 2013 2014 2015 2016 2017 2018 2019
Financed Units (#K)
Investor Presentation 24/06/2020 | 10
Financial Products / Insurance / Services Offer
FINANCIAL
PRODUCTS
INSURANCE
& SERVICES
DEPOSITS & OTHER
BANKING PRODUCTS
FULLDAMAGEWAIVER
EXTENTEDWARRANTY
GUARANTEEDASSETPROTECTION
SERVICE &MAIN.CE
FIRE &THEFT
FDW EW GAP S&MF&T
CREDIT PROTECTION
CPI
THIRD PARTY LIABILITY
TPL
TYREPROTECTION
TP
GLASS ETCHING
GE
SMART INSURANCE
SI
CONNECTED TPL
CON
Investor Presentation 24/06/2020 | 11
Products Mix
Retail & Rental Business (Units %)
Note: figures excluding RAC / Commercial Lending / Dealer Financing
52%
24%
13%
11%
HP (HIRE PURCHASE)
PCP (PERSONAL CONTRACT PURCHASE)
LSG (LEASING)
CH (CONTRACT HIRE)
73%
13%
10%
4%
20192007
Investor Presentation 24/06/2020 | 12
Insurance Business KPIs
Penetration (contracts per financed unit ratio)
and Volumes (K/Units)
Premiums and Commissions (€/M)
626 606664 619
758
898 912 905 882
161% 164%152% 159%
174% 174%
196% 199% 197%
2011 2012 2013 2014 2015 2016 2017 2018 2019
274 275328 342
416497 529 523 525
144 139 165 179229
271 278 288 274
230 229 248 289 303 301 305 318 310
438 454 494553 549 553 581 578 595
2011 2012 2013 2014 2015 2016 2017 2018 2019
Premiums Commissions
Commissions per unit (€) Premiums per unit (€)
Investor Presentation 24/06/2020 | 13
Performance Indicators
Basel III Banking Group
(effective 2015)
Note: Managed Portfolio figures are net of credit risk funds
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Average Managed
Outstanding (€/Bn) 14.6 15.5 15.5 16.4 15.8 14.9 14.6 14.7 16.1 18.5 21.8 24.4 26.3
Net Banking Income /
Average Managed
Outstanding (%)
3.5% 3.5% 3.7% 3.7% 3.9% 4.1% 4.0% 3.8% 4.2% 4.0% 3.9% 3.9% 3.9%
Net Profit
(€/Mn)119 137 105 147 153 167 172 182 249 312 383 388 467
CET 1
(Banking Group)
(%)
7.2% 8.2% 8.0% 8.8% 9.2% 10.6% 11.0% 11.7% 11.2% 11.3% 12.0% 12.5% 14.2%
Investor Presentation 24/06/2020 | 14
FINANCIALS &
ECONOMICS
OVERVIEW
Investor Presentation 24/06/2020 | 15
Performance Indicators
119 137 105147 153 167 172 182
249312
383 388467
7.2%8.2% 8.0%
8.8% 9.2%
10.6% 11.0%11.7%
11.2% 11.3%
13.7% 14.0%
15.8%
7.2%8.2% 8.0%
8.8% 9.2%
10.6% 11.0%11.7%
11.2% 11.3%
12.0%12.5%
14.2%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
(€/Bn) 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Outstanding
EOP 14.9 15.2 16.1 16.1 15.9 14.5 15.0 15.3 17.2 20.7 23.9 26.8 27.5
Total Capital Ratio including Tier 2 – Subordinated loans in place since 2017
JVA perimeter / Basel II Rules Basel III
Banking Group – CET 1
FCA Bank Group – Net Profit (€/M)
Banking Group – Total Capital Ratio
Investor Presentation 24/06/2020 | 16
Regulatory Ratios - FCA Bank Group
BANKING GROUP 31/12/2015 31/12/2016 31/12/2017 31/12/2018 31/12/2019
Common Equity Tier 1: EUR 1,704,359,498 2,042,360,581 2,372,930,394 2,724,099,943 3,001,471,659
Common Equity Tier 1 ratio: % 10.45% 11.31% 11.98% 12.45% 14.20%
Total Capital: EUR 1,705,624,176 2,048,504,559 2,712,056,507 3,067,060,768 3,344,101,942
Total Capital ratio: % 10.46% 11.34% 13.69% 14.02% 15.82%
Total assets: EUR 18,117,136,922 21,374,269,223 24,693,901,651 27,314,424,163 27,812,038,417
Risk-weighted assets: EUR 16,308,822,981 18,061,716,387 19,806,805,074 21,877,598,381 21,142,442,377
Density Ratio
(RWA/Total assets)90.0% 84.5% 80.2% 80.1% 76.0%
Leverage Ratio: % 9.40% 9.36% 9.56% 10.22% 10.62%
LCR: % 107% 213% 105% 259% 282%
NSFR: % N.A. N.A. 109% 110% 106%
Investor Presentation 24/06/2020 | 17
Key Financial Indicators
Net Banking Income (€/M) & Percentage on Avg. Outstanding
Pre-Tax Income (€/M) & Percentage on Average Outstanding
Net Operating Expenses (€/M) &
Percentage on Net Banking Income
Cost of Risk (€/M) & Percentage on Average Outstanding
517 536 576 596 609 608 587 566667
732 841
9541025
3.5% 3.5%3.7% 3.7%
3.9%4.1% 4.0%
3.8%4.1% 4.0% 3.9% 3.9% 3.9%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
4.50%
0
200
400
600
800
1,000
1,200
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Net Banking Income NBI / Average Outstanding
87
117
145 145 144
116109
8370
5543 44
66
0.59%0.76%
0.93% 0.89% 0.91%0.78% 0.75%
0.57%0.44%
0.30%0.20% 0.18% 0.25%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
0
20
40
60
80
100
120
140
160
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Provisions (€/M) Cost of Risk (%)
190 189 184 213 229 257 248 257
359417
521 5486381.3% 1.2% 1.2% 1.3% 1.4%
1.7% 1.7% 1.7%
2.2% 2.3% 2.4% 2.2% 2.4%
-0.5%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
-50
50
150
250
350
450
550
650
750
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Pre-Tax Income Pre-Tax Income / Average Outstanding
240 230 234 239 236 235 231 227 236 245 264 277 293
47%43%
41% 40% 39% 39% 39% 40%35% 33%
31%29% 29%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
50.00%
0
100
200
300
400
500
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Net Operating Expenses Cost/Income (%)
Investor Presentation 24/06/2020 | 18
(€/M)
Gross
Exposure
weight
Net Exposure
weight
Coverage
ratio
Gross
Exposure
weight
Net Exposure
weight
Coverage
ratio
Gross
Exposure
weight
Net Exposure
weight
Coverage
ratio
Non-performing
loans1.43% 0.80% 45.00% 1.21% 0.60% 50.80% 1.24% 0.64% 49.03%
Performing
loans98.57% 99.20% 0.61% 98.79% 99.40% 0.54% 98.76% 99.36% 0.52%
Total 100.00% 100.00% 1.24% 100.00% 100.00% 1.15% 100.00% 100.00% 1.12%
December 31st, 2017 December 31st, 2018 December 31st, 2019
(€/M)Gross
Exposure
Allowance for
loan and
lease losses
Net
Exposure
Gross
Exposure
Allowance for
loan and
lease losses
Net
Exposure
Gross
Exposure
Allowance for
loan and
lease losses
Net
Exposure
Non-performing
loans307.8 (138.5) 169.3 287.8 (146.2) 141.60 299.4 (146.8) 152.60
Performing
loans21,213.1 (128.6) 21,084.5 23,574.1 (127.7) 23,446.40 23,876.5 (124.0) 23,752.50
Total 21,520.9 (267.1) 21,253.8 23,861.9 (273.9) 23,588.00 24,175.9 (270.8) 23,905.10
December 31st, 2017 December 31st, 2018 December 31st, 2019
Credit Quality – Banking Perimeter
* Coverage ratio refers to the ratio between risk fund provisions and loans exposure.
Investor Presentation 24/06/2020 | 19
Residual Value
(€/M) December 31st, 2017 December 31st, 2018 December 31st, 2019
Consumer loans and leases:
- Residual Value assumed by FCA Bank 924 912 1,102
of which UK market 803 700 687
Provision for residual value 48 41 37
Provision (%) 5.19% 4.50% 3.36%
(€/M) December 31st, 2017 December 31st, 2018 December 31st, 2019
Long-Term Rental:
- Residual Value assumed by Leasys 894 1,230 1,497
Provision for residual value 38 34 24
Provision (%) 4.25% 2.76% 1.60%
Investor Presentation 24/06/2020 | 20
Residual Value by Country
(€/M) FCA Bank (Retail/PCP) Leasys (Rental)
December 31st, 2017 924 894
December 31st, 2018 912 1,230
December 31st, 2019 1,102 1,497
N. of Vehicles
with RV
Exposure in 2019
(units / K)
Total Residual
Values in 2019
(€/M)
4
4
14
17
115
155
Other
ES
UK
FR
IT
Tot. FCA Bank
5
5
5
9
103
127
Other
ES
FR
IT
UK
Tot. FCA Bank
43
53
182
190
1,029
1,497
Other
ES
FR
UK
IT
Tot. FCA Bank
63
107
119
126
687
1,102
Other
ES
FR
IT
UK
Tot. FCA Bank
Average exposure per vehicle: ~ € 9.2K
Investor Presentation 24/06/2020 | 21
TREASURY &
FUNDING
Investor Presentation 24/06/2020 | 22
FCA Bank: EUR Secondary Spread (since Jan 2015)
FCAB MTN EUR
500 MN DUE
SEP.2020
FCAB MTN
EUR 500 MN
DUE JAN.2021
FCAB MTN EUR
800 MN DUE
NOV.2021
FCAB MTN EUR 800
MN DUE OCT.2020
FCAB MTN EUR
600 MN DUE
FEB.2022
FCAB MTN EUR
650 MN DUE
JUN.2022
FCAB MTN EUR
800 MN DUE
NOV.2022
FCAB MTN EUR
850 MN DUE
SEP.2024
FCAB MTN EUR
850 MN DUE
FEB.2023
Investor Presentation 24/06/2020 | 23
Treasury and Financial Management
The JV continues to benefit from the financial support of its banking shareholder, which
will remain in force for the duration of the JV Agreement (i.e. at least until Dec.2024) and
represent a key element of the overall financial strategy
The new Funding Agreement provides:
• Constant and available funding throughout the duration of the JV Agreement
• Priced at market terms
• Sized to fill the needs of the company even in the most stressful scenarios
It is nevertheless a primary goal of the company to finance itself autonomously on the
markets, continuing its funding diversification strategy aimed at strengthening the liquidity
position of the group, by approaching new investors and new markets/products
Investor Presentation 24/06/2020 | 24
Funding Sources Evolution
4.3 3.5 3.0 3.5 3.8 3.3 4.1 3.8 3.1 3.5 4.4 5.7 5.6
1.0 1.8
1.8 1.2 1.3 4.8
3.9 3.5 3.2 3.1 3.0
2.4 2.7 4.1
3.8
4.8
6.2 5.9 0.2
0.5
0.9 1.1
5.2 6.4 8.4 8.0 7.1
5.2 5.1 4.1
2.7 2.8
2.7
3.0 3.5
0.1 0.2
0.5 0.5 0.5
1.5 2.3
3.1
5.1
7.5
8.9
8.7 9.0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Bonds
CPs
CA Group
Deposits
Banks
ECB
Securitizations
(€ / Bn)
16.0
13.713.913.0
14.514.714.914.314.9
23.1
19.5
25.9 26.7
21%
22%
5%13%4%
34%
1%
2019
Investor Presentation 24/06/2020 | 25
Funding Diversification
Regular access to debt capital markets under the EMTN Programme, with 40 bond
issuances since 2011, of which:
• 20 public transactions in EUR, 1 in GBP and 19 private placements in EUR
• 4 domestic issuances in CHF
• 2 domestic issuances in PLN
Proven resilience of relationship banks’ funding
Strengthened liquidity position, driven by stable funding targets required under the JVA (in
addition to NSFR) and by significant back-up facilities (including Groupe Crédit Agricole)
Development of a retail deposit platform
Access to ECB refinancing instruments
Strong focus on securitizations:
• Leveraging on the good quality of different portfolios across Europe and on attractive ABSmarket conditions
• Impressive track record of transactions arranged and managed in the last two decades
European Commercial Paper Programme (€ 750M) used for short-term funding needs
Investor Presentation 24/06/2020 | 26
Assets and Liabilities Static Maturity Profile
Prudent financial risk policies aligned to Crédit Agricole standards driving a balanced liquidity
profile
No rating event or financial covenants triggering early re-payment, early amortization,
acceleration
Dec 31, 2019
Average duration:
Assets: 13.97 months
Liabilities: 18.06 months
Investor Presentation 24/06/2020 | 27
Funding Sources Evolution
Balance – Monthly progress (€ M)
Objectives
Grant additional diversification of
funding mix
Cement FCA and FCA Bank’s
customer loyalty
Enhance possible cross selling
activities
0
100
200
300
400
500
600
700
800
900
1000
1100
1200
1300
1400
1500
Jun
-16
Jul-
16
Au
g-1
6
Se
p-1
6
Oct-
16
No
v-1
6
De
c-1
6
Jan
-17
Fe
b-1
7
Ma
r-1
7
Ap
r-17
Ma
y-1
7
Jun
-17
Jul-
17
Au
g-1
7
Se
p-1
7
Oct-
17
No
v-1
7
De
c-1
7
Jan
-18
Fe
b-1
8
Ma
r-1
8
Ap
r-18
Ma
y-1
8
Jun
-18
Jul-
18
Au
g-1
8
Se
p-1
8
Oct-
18
No
v-1
8
De
c-1
8
Jan
-19
Fe
b-1
9
Ma
r-1
9
Ap
r-19
Ma
y-1
9
Jun
-19
Jul-
19
Au
g-1
9
Se
p-1
9
Oct-
19
No
v-1
9
De
c-1
9
Jan
-20
Fe
b-2
0
Ma
r-2
0
Ap
r-20
Ma
y-2
0
Investor Presentation 24/06/2020 | 28
Euro Bonds – Issuances & Maturity Schedule
Euro Bond Maturity ScheduleEuro Bond Issuances
2014 2015 2016 2017
2020 2021
2018(€M)
(€M)
2022
2019
Bonds’ maturities well distributed and diversified
between short-term opportunistic Private Placements
and long-term Public Issuances pursuing stable
funding targets
2023 2024
(750)(750)(750)
- -
(1,300)
(120)
(500)
(840)(761)
(565)
(200)
(480)
(800)
(240)
(1,000)
(1,330)
(600)(650)
(1,200)
(850)
(200)
(850)
2020
500
800
500
1,050
665
800
600650
1,000
850 850
3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24
Investor Presentation 24/06/2020 | 29
COVID-19
IMPACTS
Investor Presentation 24/06/2020 | 30
COVID-19 Sensitivity
FCA BANK has elaborated 2 different stress scenarios analysis to assess the impact of
COVID-19 on its business and profitability:
U-shape (recovery after the “lockdown”) :
• Retail: assumed significant drop in the new business volumes; Yearly Financed
volumes: -2 €/bn vs BDG 2020.
• Dealer: substantially stable, due to slowdown in sell-in and delay in sell-out activities.
• Rental: Yearly Financed volumes: -37% vs BDG 2020.
W-shape (2nd wave of COVID epidemic in Autumn 2020):
• Retail: “lockdown” occurring again in October with Dealer network shutdown affecting
the Yearly Financed volumes: - 3 €/bn vs BDG 2020
• Dealer Financing: as per U-shape scenario
• Rental: negatively impacted for other 2 months (October and November)
Both stressed scenario show a resilient P&L 2020 of FCA Bank, notwithstanding
challenging assumptions on new business volumes, cost of risk and cost of funding
Investor Presentation 24/06/2020 | 31
Liquidity
Contingency Funding Plan (“CFP”) was activated in March 2020 as soon as the COVID-19 started
to spread out in Italy and across Europe
CFP is still on-going (notwithstanding the return of Early Warning Indicators to “NORMAL” since end
of April), due to the persistently high secondary market spread
FCA Bank liquidity position shows sufficient resources on top of the Credit Agricole Group funding
commitment, also considering the expected business slowdown:
Group Internal Risk Committee monitoring the situation on a weekly basis
Investor Presentation 24/06/2020 | 32
CFP Action Plan
Upward adjustment of ECB funding planned in 2020, leveraging the collateral currently available and
eligible for ECB refinancing purposes, including credit claims contributed via “ABACO”, a process
managed by Bank of Italy as a lender in the frame of Open Market transactions
All Public MTN issuances postponed to 2021 (subject to market conditions, FCAB might consider to
return to the market in 2020 should secondary market levels improve)
CA funding throughout 2020 expected in line with Budget 2020
COVID-19 impacts on Securitizations managed and under control
Deposits base resilient and topping up € 1.4 bln in April
Investor Presentation 24/06/2020 | 33
Focus on MTN – Secondary market Spread Evolution
Investor Presentation 24/06/2020 | 34
Liquidity Stress Scenario
15 months of available liquidity under a severe stress scenario based on the U-shape Business
Plan scenario (as of April 2020) and according to following assumptions:
• Business volumes unchanged
• No renewal of any third party funding sources
• ECB’s (T-LTRO) and Crédit Agricole’s funding sources availability
Investor Presentation 24/06/2020 | 35
Business during the COVID-19 lockdown
All essential processes working “as usual” and no technical or security incidents encountered.
+48 FTE as a task force for Customer Care and Collection was created.
Total Market registrations vs budget (YTD April) -38%, FCA -47%, JLR -46%, Ferrari -43%.
Dealers outstanding stable (-4%) during the lockdown, due to the very limited sell-in and sell-
out; after the lockdown, sell-out progressive recovery
Most of our markets exited the lockdown by the end of April, as of today all dealers are
normally running their business except for UK and Spain where only 40% of dealers
(>400mq) are open.
During the total lockdown period (April) new business volumes significantly below budget:
Total Financed Units -79% / Total Financed Amount -76%; costs controlling measures allowed
to get to a April YTD Net Result just at -1.3% vs. Budget.
More than 185.000 customers requested support/information for COVID-19 (dedicated
resources from ICT / Customer Care / Credit departments, including task-forces)
Almost 120.000 Retail/Rental contracts postponed: €88m installments postponed, granting a
common European rule (up to 3 installments postponements) or, if applicable, more favorable
local measures issued by national authorities
> 2.000 Dealers supported (€ 770m outstanding invoices postponed)
Investor Presentation 24/06/2020 | 36
Business after the end of the COVID-19 lockdown
In all markets the re-opening phase is taking place following specific protocols and
procedures, dedicated communication, web training on safety standards (i.e. social distancing
and body temperature where applicable) and personal protection equipment (i.e. mask,
gloves and hand sanitizer gel) available in the offices.
The restart phase is going to be a gradual process, where Remote Working will continue to
be leveraged in a significant way: overall average of 15% maximum presence in the office to
grant the respect of the social distancing.
Retail and Rental business lines are recovering with respectively (-49%) and (-39%) vs
2019 in May in terms of new business; in Italy, third and fourth weeks of May in line with
pre-COVID19 levels.
All European dealers are up and running by the beginning of June and OEMs are
launching several promo campaigns to accelerate the restart after the lockdown and push
dealers to sell the older stock.
FCAB Customer Service still managing the backlog, although reducing in May.
Investor Presentation 24/06/2020 | 37
Cost of Credit Risk
.
Under the U-shape assumptions:
Dealer Financing:
• Assumptions: stage 1&2 relatively flat, expected increase of stage 3
• Impact on Cost of Risk expected +26bps vs. Budget
Retail:
• Assumptions: estimated increasing overdue (stage 2 & 3)
• Impact on Cost of Risk expected +16bps vs. Budget
Rental:
• Assumptions: increasing COR less significant in the Rental business (compared to the
Retail one) due to the vehicle ownerships
• Impacts on Cost of Risk limited to a few basis points compared to Budget (expected +
3bps)
Total Cost of risk showing moderate increase and confirming the resilience of FCA Bank’s
credit cycle (underwriting – monitoring – collection)
Investor Presentation 24/06/2020 | 38
COVID-19: impact on mobility
Paris plans to create 650 km of pop-up ‘corona cycle ways’
• Paris is the latest global city to roll out emergency bike lanes for the use of key workers and
others during the lockdown. 650 kilometers of cycle ways—including a number of pop-up
“corona cycle ways”— will be readied for May 11 when lockdown is eased in France.
Milan announces ambitious scheme to reduce car use after lockdown
• Milan is to introduce one of Europe’s most ambitious schemes reallocating street space
from cars to cycling and walking, in response to the coronavirus crisis.
Will COVID-19 fundamentally change mobility?
• The mobility sector has been one of the industries most affected by the outbreak. This
article provides interesting information of the immediate impact of the isolation measures on
the industry and explores the degree to which the long term consequences may affect
mobility even after the peak of the pandemic passes
Digital lessons from COVID-19
• The coronavirus pandemic has already had a profound effect on how we leverage and
continue our societal digital transition. What are the key lessons being learned? What type
of new digital deal must prevail to adequately power a post-coronavirus world?
Investor Presentation 24/06/2020 | 39
FCAB strategy for the relaunch
FCA Bank – Digital Bank
• Instant Payments - Instant Credit
• New channels: E-Commerce, Google Hangout
• E-Wallet
• Payment Waiver or ad-hoc insurances and instant insurances to provide customer peace of
mind after the Covid-19
LEASYS – Mobility Pioneers
• Continue with Leasys’s internationalization (Denmark and Portugal in 2020)
• Carry on with Mobility & RAC acquisitions (Spain, UK, Germany)
• Proprietary car-sharing platform (to be launched in Turin by Q3 2020 to be expanded in
Italy & Europe)
• E-commerce (e.g. Amazon)
FCA Bank will also continue to rollout its strategy to converge in Global Platforms for
Dealer Financing, Retail and Rental processes (ICT)
Investor Presentation 24/06/2020 | 40
STRATEGY &
FINAL REMARKS
Investor Presentation 24/06/2020 | 41
FCA Bank Priorities 2020-2021
1) LONG TERM
RENTAL LEASYS
BRANCHES
• PT, DK, AT, CH, GR
2) SHORT TERM
RENTAL
• FR, ES, UK, DE
3) TRANSFORMATION
OF SELECTED
SUBSIDIARIES INTO
BRANCHES
1) RECREATIONAL
VEHICLES &
MOTORBIKES
2) B2C (LEASYS
remarketing)
3) DIGITALIZATION
4) NEW AUTOMOTIVE
PARTHNERSHIPS
5) LEASYS MOBILITY
STORES EXPANSION
IN EUROPE
DRIVERS
STRATEGY
GROWTH WITH DIVERSIFICATION
1) DEPOSITS
2) OWN CREDIT CARD
3) FCA BANK IN-
VEHICLE PAYMENTS
4) INSURANCE
1) ICT PLATFORMS
• DK
• CRFS Italy & Iberia
(after Germany,
Austria, Poland,
France)
• CRS France
2) FURTHER
ENHANCING THE
CONTROL SYSTEM
AND PLATFORMS
(including Risk and
Compliance)
3) DIGITAL PROCESS
WHOLESALE
4) E-COMMERCE
PLATFORM
5) CRM EU Platform
1) NEW MOBILITY
PROGRAMS &
SOLUTIONS
• Car Sharing (EU)
• Peer to Peer (EU)
• Parking/Taxi
• Amazon Motors
(EU)
• Pay per Drive
• Subscription
2) ADVANCED
MOBILITY
PROGRAMS
• Multi-Modal
Mobility
• Integrated Mobility
3) ELECTRIFICATION
• Set-up
infrastructure and
charging solutions
FOOTPRINT
(COUNTRIES &
BUSINESS LINES)
PRODUCTS &
SERVICES
BRANDS,
MARKETING &
INNOVATION
PEOPLE &
PLATFORMS
INDUSTRY,
CHANNELS &
DIGITAL
Investor Presentation 24/06/2020 | 42
Mobility – Business Arena
*In runoff
DISTANCE
FLEXIBILITY
SH
OR
TM
ED
IUM
LO
NG
HIGH MEDIUM LOW
RIDE-HAILING
RIDE-SHARING
TAXI / E-HAILING
BIKE-SHARING
AIRPLANE
TRAIN
PUBLIC
TRANSPORTATION
OW
NE
RS
HIP
TRADITIONAL FINANCIAL
SERVICES
LONG TERM RENTAL
CAR SUBSCRIPTION
SHORT / MEDIUM
TERM RENTAL
*
PEER
TO PEER
CAR
SHARING
Investor Presentation 24/06/2020 | 43
Mobility – LEASYS Business Areas and Strategic Directions
Integrated Mobility
Short term rental
Medium term rental
P-2-P car sharing
Network development
(Leasys Mobility Stores)
Innovation Accessibility
Electrification
Be Free
Leasys Miles
Private Lease
(Noleggio Chiaro)
International expansion
Digital sales channel
Amazon Motors
Virtual show room
Investor Presentation 24/06/2020 | 44
Mobility – LEASYS Long Term Rental footprint
Controlled by FCA Bank, among the top players in the long-term rental and mobility sector IN
Europe
Leveraging the most recent technologies in new mobility and fleet management (car sharing,
peer to peer, etc.)
Multibrand fleet, offering innovative mobility solutions with about 280,000 vehicles in Europe
Supplier to the major institutional players and industrial companies, also offering innovative
mobility solutions for self-employed professionals and private individuals.
Expansion in new countries: 2019 – Poland and 2020 – Denmark and Portugal
Investor Presentation 24/06/2020 | 45
Leasys Today – Technologies
I-Quote is conceived to meet the client
needs by allowing drivers to configure and
quote the desired vehicles autonomously
under the car policy rules
Leasys App – Drivers can access the
services provided by Leasys from
their smartphone
I-Care is the info-mobility and
remote diagnosis serviceMy-Leasys is the web portal
provided by Leasys for its
clients to monitor their fleet
The commercial front-end that
makes the vehicle quotation
easier, faster and more efficient.
Investor Presentation 24/06/2020 | 46
Leasys 2020 – 2021
5 COUNTRIES
50,000 FLEET SIZE
SHORT-MEDIUM TERM
INTERNATIONALIZATION 2020-2021
>50% ELECTRIFIED
Investor Presentation 24/06/2020 | 47
2019 Highlights
Very solid commercial performance continuing in 2019, with a managed portfolio of € 27.5Bn
(end of period), an increase of about 3% Y-o-Y
Net Banking Income & Rental Margin increasing by 7% (at € 1,025Mn) vs. December 2018
Cost of risk slightly increasing at 25 bps
Net Profit increasing at € 467Mn (vs. € 388Mn at December 2018)
Solid liquidity position with decreasing cost of funding
CET 1 set at 14.20% (Consolidated perimeter), on the back of a Total Capital equal to €
3.3Bn; Total Capital Ratio set at 15.82%
Despite the particular situation, FCAB expects that 2020 FY results will be resilient in terms
of – Capitalisation – Liquidity – Credit risk – Net profit
Investor Presentation 24/06/2020 | 48
CONTACTS
INTERNATIONALIZATION ROAD MAP
www.fcabankgroup.com
FCA Bank SpA
Website
Riccardo Mesturino Group Treasurer [email protected]
Giovanni Gili Debt Capital Markets & IR [email protected]