1. FIN MEDIA
HOTEL HILTON
JP Decrock
General Director
20/11/2019

2. BRD = BANCA ROMANA PENTRU DEZVOLTARE SGL = SOGELEASE

3. * Import and leasing in Romania
BRD AND BRD SGL
* Import and leasing in Romania
* What about the leasing ?
* Who are the parties of a leasing
contract and what are their interests
in leasing?
* What sort of constraints for the
lessor?
* BRD Sogelease
* Credit or leasing ?

4. What are the most important suppliers to Romania ?

5. The most important suppliers (%)
Sce: Nat.Statist.Comm.

6. Import - source: National Statistics Comm.
More than 80% equipment are coming from abroad:
21.7%:machinery and mechanical
17.3% = textiles & articles thereof
13.2% = mineral products
21.5% = transports means & materials

7. * What about the leasing ?
BRD AND BRD SGL
* Import and leasing in Romania
* What about the leasing ?
* Who are the parties of a leasing
contract and what are their
interests in leasing?
* What sort of constraints for the
lessor?
* BRD Sogelease
* Credit or leasing ?

8. What about the leasing ?
Reminder : it is an operation which permits to someone (called lessor) to lease a good to somebody else (called lessee). This equipment has been bought by the lessor to a seller (called the supplier).This operation implies the lessee’s option to choose at the end of contract between buying or not the leased good.

9. What sort of leasing ?
* Financial lease
* Operating lease

10. Financial lease – Main aspects
Assets financed in the balance sheet of the lessee
Right for the lessee for three options at the end of the leasing contract. The minimum price = 20% of the entrance price
Taxes and VAT paid at the end of the contract and calculated on 20% minimum of the entrance price
Lessee is not in charge for the customs administration

11. Assets financed in the balance sheet of the lessor
Operating lease – Main aspects
Assets financed in the balance sheet of the lessor
Is considered as operating lease an operation which didn’t meet one of the criteria linked at the financial lease (transfer risks and benefits-ownership transfer- purchase option <50% entrance price-usage equal at 75% legal duration depreciation)

12. * Import and leasing in Romania * What about the leasing ?
BRD AND BRD SGL
* Import and leasing in Romania
* What about the leasing ?
* Who are the parties in a leasing
contract and what are
their interests in leasing ?
* What sort of constraints for the
lessor?
* BRD Sogelease
* Credit or leasing ?

13. * cash payment (and secured) by the leasing company
The supplier
* cash payment (and secured) by the leasing company
* presently funding saving
* no counterpart risk
* only focused on industrial risk `

14. *fiscal : VAT paid on the contract duration and on the residual value
The lessee
*fiscal : VAT paid on the contract
duration and on the residual value
(import)
*no other guarantees than the good
financed as far as this equipment
has a good market value
*better insurances
*not in charge for customs formalities

15. * extension of the commercial offer
The lessor
* extension of the commercial
offer
* less final risk because the lessor
is the owner of the financed
good

16. * What sort of constraints for the lessor?
BRD AND BRD SGL
* Import and leasing in Romania
* What about the leasing ?
* Who are the parties in a leasing
contract and what are their
interests in leasing?
* What sort of constraints for
the lessor?
* BRD Sogelease
* Credit or leasing ?

17. Lessor’s main constraints
* Residual value risk
* Regulation
* Funding

18. Residual value risk
* financial rule : RV has to be at
20% minimum of the entrance
price for imported goods
* confusion with the customs’
regulation. This minimum doesn’t
exist in any other country

19. M.V and O/S
Dp andRV = 20%
duration = 36 M.
months
20/11/2019

20. * statutory provisions
The regulation
* statutory provisions
* non deductibility of interests
* banks as shareholders in the
leasing companies. Rule of the
20%.
* no “watch dog” of the local market

21. * for the entities as BRD SGL affiliated to a Romanian bank
The funding
* for the entities as BRD SGL
affiliated to a Romanian bank
(lending limits) imposed by banking
law = looking for more funds for
pursuing the activity

22. * BRD Sogelease * Import and leasing in Romania
BRD AND BRD SGL
* Import and leasing in Romania
* What about the leasing ?
* Who are the parties in a leasing
contract and what are their
interests in leasing?
* What sort of constraints for
the lessor?
* BRD Sogelease
* Credit or leasing ?

23. BRD Sogelease-Brief Profile
SRL recorded on the 31st july 2001
Acivity: all sorts of leasing
Unique shareholder : BRD (SG = 51%)
Capital = 1,5 millions $US
Team of 22 people (around 25/30 in 2003)

24. SG network.. AA- Standards&Poor’s Aa3 Moody’s AA Fitch
SG = over 13 mill. Customers
Strong position in the retail banking including the leasing in Europe, thus :
Purchase of Gefa (subsidiary of Deutsche Bank) 2 years ago.
Setting up of SGVS (Société Générale Vendor Finance) present in Germany, France, Italy, Poland, UK,Holland,Austria, Czech Republic, Australia)

25. What do we finance now ?

26. What sort of equipment did we finance ?
moving equipment : cranes,excavators,bulldozers
vehicles: trucks, vans. buses, tourism and others cars,
special equipment : medical and IT
industrial equipment

27. What is our present risk per nature of equipment ?
Tourism vehicles : 21%
Trucks and vans : 13%,
Industrial Equip.: 20%
Medical Equip.: 22%
Others : %
% of the total financed

28. What sort of products today ?
Financial Lease
mainly contracts in euro

29. What will we finance tomorrow ?
Real estate leasing

30. What sort of customers in BRD SGL ?
* physical persons
* corporate
* from BRD
network (90%)
* outside BRD
network

31. What could be tomorrow the main demands coming from our customers ?
* fleet cars financing with
full services
* operating lease
* lease back
* vendor financing
* evolutive rental contract
* pure rental with services
and maintenance

32. between supplier,lessee
Future = partnership
between supplier,lessee
and lessor

33. * Credit or leasing ? * Import and leasing in Romania
BRD AND BRD SGL
* Import and leasing in Romania
* What about the leasing ?
* Who are the parties in a leasing
contract and what are their
interests in leasing?
* What sort of constraints for
the lessor?
* BRD Sogelease
* Credit or leasing ?

34. Credit Fluctuated rate Owner of the equipment
More guarantees to be given to the banker
To pay immediately taxes and VAT on 100% on the import price
Not possible to give back the equipment after 3 years
In charge for the customs duties

35. Leasing Fixed rate but not too much difference with the credit
Not the owner of the equipment
No other guarantees to be given to the banker as far as the equipment has some market value
To pay at the end of the contract taxes and VAT calculated on 20% on the entry price
Buying option at the end of the contract
Not in charge for the customs duties