1. OPPORTUNITIES OF OPERATIONAL LEASING ON INTERNATIONAL & REGIONAL LEVEL - EXAMPLE OF CZECH REPUBLIC THOMAS SCHROEDER MILAN PTACNIK PRAGUE FEBRUARY 1-3, 2012

2. AGENDA PAGE 2  About LeasePlan  Fleet Decision Making Process  International Fleet Management Challenges & Solutions  Fleet Financing  Fleet Policy  Example of a local solution  LeasePlan Czech Republlic

3. ABOUT LEASEPLAN Global market leader in fleet and vehicle management  Founded in 1963 in The Netherlands  Owned by a consortium of :  Volkswagen Bank GmbH (50%  Fleet Investments B.V. (50%)  Global presence with offices in 30 countries  1.3 million cars managed  Well-diversified corporate customer base  Manufacturer independent  Universal banking license, supervised by the Dutch Central Bank  Proven track record in managing risk

4. AGENDA PAGE 4  About LeasePlan  Fleet Decision Making Process  International Fleet Management Challenges & Solutions  Fleet Financing  Fleet Policy  Example of a local solution  LeasePlan Czech Republlic

5. FLEET DECISION MAKING PROCESS WHERE ARE THE DECISIONS BEING MADE? PAGE 5 Source: Fleet Market Research 2011, ConsultPlus

6. IN WHICH COUNTRY IS THE DECISION MAKER POSITIONED? PAGE 6 Source: Fleet Market Research 2011, ConsultPlus

7. WHICH DEPARTMENT IS IN THE LEAD OF FLEET MANAGEMENT PAGE 7 Note: 30% of the time the person in charge of Fleet is also responsible for Travel within the company. Source: Fleet Market Research 2011, ConsultPlus

8. STRATEGIC & OPERATIONAL DECISION FLOW Int’l Agreement / Services / SLA Communication Strategic Reviews / Fleet Control / Consultancy Operational Account Reviews / Policies & Controls Communication Invoicing & Authorisations HQ Fleet Management Company Int’l Procurement Manager / Fleet Manager etc. HQ Company OpCo Fleet Management Company Local Subsidiary Country Fleet Manager DRIVER Quotes, Orders, Renewals, Help Policy

9. AGENDA PAGE 9  About LeasePlan  Fleet Decision Making Process  International Fleet Management Challenges & Solutions  Fleet Funding  Fleet Policy  Example of a local solution  LeasePlan Czech Republlic

10. CHALLENGES & SOLUTIONS ECONOMY  EUROPE – Again recession  Significant financial issues in a number of countries putting the Euro under pressure  Replacement of governments  Commercial banks under pressure  Funding cost are rapidly increasing  Increased governmental savings measures  EUROPE – Again recession  Significant financial issues in a number of countries putting the Euro under pressure  Replacement of governments  Commercial banks under pressure  Funding cost are rapidly increasing  Increased governmental savings measures  CENTRAL / EASTERN EUROPE – Higher inflation  Price growth due to weakening currencies and a worsening economic outlook  Political unrest in same markets  Russia, developing market  But modest growth in 2012  Other markets:  HU/SK 10 % growth expected  PL /RO 15% growth  CENTRAL / EASTERN EUROPE – Higher inflation  Price growth due to weakening currencies and a worsening economic outlook  Political unrest in same markets  Russia, developing market  But modest growth in 2012  Other markets:  HU/SK 10 % growth expected  PL /RO 15% growth

11. CHALLENGES & SOLUTIONS FUNDING  CEE definitely remains a growth market  Cost for financing rapidly increasing  Access to funding is still limited  Therefore cost reductions more needed than ever before  Consolidation of the lease market is continuing  Less local market players  Increasing presence of global fleet management companies

12. CHALLENGES & SOLUTIONS STRATEGY  Outright purchase  Financial lease  Operational lease  Companies are focusing on price more than before and trying various purchasing strategies  Changing Tax regulations  Lease Accounting Standards (IFRS)  Commercial car market opening up for operational lease  Car policy subject to change  Corporate Social Responsibility

13. CHALLENGES & SOLUTIONS CAR POLICY  Changes in company car policies  Increased focus on cost control and cost reduction opportunities  Dual supply ship  Pro-active fleet management  Upfront pricing and TCO  Make restrictions (German brands remain popular in CEE)  Term & mileage optimisation  Increased focus on environmental aspects and driver behaviour  CO 2 Thresholds  Budgets including fuel  Fuel management and influencing driver behaviour  Incentives to motivate BIK drivers  Accident management and driver training

14. 19/08/2015PAGE 14  Need for a consolidated view of your global fleet and its development across different countries  Need for a balanced approach to international fleet management incorporating cost, environment and risk related aspects  Need for internal visibility of spend for this ‘category’, pro-actively communicate achieved results in areas such as cost management, carbon footprint reductions, OEM management and risk related achievements  Need for effective steering and guidance of local fleet responsible CHALLENGES & SOLUTIONS REPORTING REQUIREMENTS

15. GLOBAL INITIATIVES focus on long term opportunities International business leading to local growth Best practice sharing Manufacturer Agreements Optimised & proven fleet policies Best practice implementation Channeled sourcing, various options Optimised fuel and CO2 policy Optimised car choice, terms and mileage Direct driver contact Local reporting in international reports Use of e-business tools Make use of beneficial tax regulation Key Topics LOCAL INITIATIVES Country 1 LOCAL INITIATIVES Country 1 LOCAL INITIATIVES Country 1 A BEST PRACTICE SOLUTION FOR CHALLENGING GROWTH

16. CHALLENGES & SOLUTIONS CONCLUSIONS  Ongoing economic challenges  Operational leasing is expected to grow in CEE countries  CEE countries will benefit from Global / European leasing and fleet maanagement contracts  Increased focus on cost and cost reduction opportunities and environmental aspects  Importance of strong link to headquarter companies and coordination of global and national initiatives

17. AGENDA PAGE 17  About LeasePlan  Fleet Decision Making Process  International Fleet Management Challenges & Solutions  Fleet Funding  Fleet Policy  CSR  Example of a local solution  LeasePlan Czech Republlic

18. OPERATIONAL LEASING CZ MARKET MILAN PTÁČNÍK, LEASEPLAN ČR

19. CONTENT  CZ Car Market Overview  Business Cars Financing Trends  Car Volumes (by CLFA members)  BER (Block Exemptions) Motor Vehicle Sector  Why Full Service Operational Leasing? 19/08/2015 CZECH OPERATIONAL LEASING MARKET PAGE 19

20. CZECH CAR MARKET  Since 2009Q2 VAT deduction allowed for PC 19/08/2015 CZECH OPERATIONAL LEASING MARKET PAGE 20

21. CHANGE IN CAR FINANCING FOR BUSINESS  Operational Lease + Non banking Growth  Tax Depretiation from 3 to 5 years (FinLease advantage disapeared) 19/08/2015 CZECH OPERATIONAL LEASING MARKET PAGE 21

22. CAR VOLUMES FINANCED BY CLFA MEMBERS 19/08/2015 CZECH OPERATIONAL LEASING MARKET PAGE 22

23. MOTOR VEHICLE SECTOR „BLOCK EXEMPTIONS“  Commission Regulation (EU) 1400/2002  Car sale  Leasing companies should be treated as the end-client but…  Commission Regulation (EU) 461/2010 & 330/2010  Maintenance & spare parts sale  Client do not loose the car guarantie when using non-original spare parts & by using maintenance providers independent on car producers  Car make independent networks development at the Czech market  Price sensitive clients already benefits from this regulation! 19/08/2015 CZECH OPERATIONAL LEASING MARKET PAGE 23

24. WHY FULL SERVICE LEASING?  CORE BUSINESS focus and capacities  TCO (= money) SAVINGS realized, overview, controll  Clear and predictable CASH-FLOW  Less financial sources allocated to company car fleet  Invoiced instalments = tax costs  Hassle free mobility for employee is secured  No financial / car operability surprises  Professional car fleet management  Full package of services available  Single point of contact Note: Following comparisons are based on LeasePlan internal data sources and estimations. 19/08/2015 CZECH OPERATIONAL LEASING MARKET PAGE 24

25. TIME EARNED FOR CORE BUSINESS 19/08/2015 CZECH OPERATIONAL LEASING MARKET PAGE 25

26. TCO SAVINGS POTENTIAL  Return on invested capital / lost opportunity costs  Efficiency of the total process  Administration 19/08/2015 CZECH OPERATIONAL LEASING MARKET PAGE 26

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