1. Richard Knubben Automotive Affairs Adviser ALB National Conference, Bucharest 12 November 2009 A Look at the European Leasing & Consumer Credit Markets

2. Agenda  About Leaseurope  Leaseurope Work Streams  Leasing Market Figures: -In the EU and beyond -European Leasing Market in 2008 & H1 2009  About Eurofinas  Eurofinas Work Streams  Consumer Credit Lending: -In the EU and beyond -European CC Market in 2008 & H1 2009

3. About Leaseurope  The voice of leasing and automotive rental in Europe  It brings together 47 Member Associations  In turn representing more than 2 000 finance leasing firms & more than 1 100 short term rental companies  Leaseurope represents ~95%of the European leasing market Leaseurope members

4. Leaseurope Work Streams  Prudential supervision – focus on leasing specific issues ¬ CRD Review In particular, technical amendments to the CRD ¬ Forthcoming issues Changes to the European financial supervision system Monitoring of any initiatives in the field of non-credit institutions providing mortgage credit  Taxation ¬ VAT for financial services  Legal ¬ Anti-Money Laundering ¬ Insurance mediation directive ¬ Credit intermediation ¬ CCD and leasing ¬ Product tying

5. Leaseurope Work Streams  Automotive issues ¬ Block exemption regulation ¬ Cross border restrictions on car rental ¬ Scrappage schemes ¬ Vehicle remarketing ¬ Environmental concerns  Other issues ¬ Debtors’ assets transparency ¬ Leasing by the public sector  European level market data ¬ Annual survey of European leasing ¬ Ranking of top European leasing firms

6. Leaseurope Work Streams  Lease accounting ¬ IASB/FASB are proposing a new lease accounting model - right of use approach (final standard – Q2 2011) Lessees will be required to recognise all leases on their balance sheets The current finance/operating lease distinction will no longer exist The new rules will require complex assessments regarding the lessee’s most likely lease term, contingent rental and residual value guarantee payments ¬ The Discussion Paper published in March 2009 did not address lessor accounting However, the Boards are working on a performance obligation approach to lessor accounting They have yet to confirm whether lessor accounting will be in an exposure draft standard (Q2 2010)

7. Leaseurope Work Streams  Lease accounting ¬ Leaseurope has been instrumental in encouraging stakeholder reactions The Boards have received 300 comment letters ¬ Our own response focused on the unnecessary complexity of the new proposals: IASB/FASB have to conduct a cost/benefit analysis The new approach should be proportionate not overshadow the true economic benefits of the product Leaseurope has also raised due process issues regarding lessor accounting with the governing body of the IASB

8. US ELFA 138 bil€ Leaseurope 330 bil€ of which equipment & vehicles: 294 bil€ Japan JLA 42 bil€ New equipment leasing volumes; ELFA figures do not include passenger car leasing Source: Leaseurope 2008 Annual Survey, local leasing associations, Leaseurope estimates Brazil ABEL 11 bil€ Australia AELA 23 bil€ Global Leasing Markets in 2008

9. European Leasing Market Evolution  European leasing market - new volume growth (% YoY) €330.1 bil € 36.1 bil € 293.9 bil Growth rates are calculated based on a homogenous sample of members reporting from year to year & are not adjusted for exchange rate fluctuations Source: Leaseurope Annual Surveys -25% -15% -5% 5% 15% 25% 19951996199719981999200020012002200320042005200620072008 Total volumesReal EstateEquipment (incl vehicles) -2.4% -5.0% -21.6% New volumes 2008

10. PR are based on a homogenous sample of members reporting in Leaseurope’s Annual Statistical Enquiries, Eurostat  Leaseurope penetration rate (1999-2008) 20.9% 14.4% 2.0% 0% 5% 10% 15% 20% 25% 1999200020012002200320042005200620072008 TotalEquipment (incl vehicles) Real estate 2008 penetration for the 30 members in 23 countries for which data was available European Leasing Penetration

11. Growth rates are calculated based on a homogenous sample of members reporting from year to year & are not adjusted for exchange rate fluctuations Source: Leaseurope 2008 & 2007 Annual Surveys  New volume growth per region in 2008 (%YoY) DE UK FR IT Med AT, CH, Benelux CEE Nordic 07-08 06-07 6.4% 14.3% 3.6% 10.2% 1.6% 16.7% 50.1% 11.4% 1.8% -15.2% 3.6% -18.5% -23.8% 4.7% 12.2% 2.4% -25.0%-15.0%-5.0%5.0%15.0%25.0%35.0%45.0%55.0% Performance of European Leasing Markets

12. UK  €17 bn DE  €20 bn IT  €13 bn FR  €13 bn ES  €4 bn PL  €2 bn CZ  €0.8 bn -39% -25% -23% -52% -41% -57% -36% European Leasing Market in H1 2009 Growth H1’09/H1’08 Source: Leaseurope’s member associations data

13. -30% -25% -23% -38% -41% -57% -54% -33% Adjusted for exchange rate fluctuations: Source: Leaseurope’s member associations data UK  €17 bn DE  €20 bn IT  €13 bn FR  €13 bn ES  €4 bn PL  €2 bn CZ  €0.8 bn Growth H1’09/H1’08 European Leasing Market in H1 2009

14. Source: Leaseurope and Eurostat 59% -2% -22% -2% -42% 9% 23% 26% 19% 15% 41% < -5 % -5% – 0% 0% – 5% > 5 – 10%  GDP growth  Growth of new leasing volumes H1 2008 CEE cluster: 12.2% On average, CEE leasing still performs well in 2008 > 10 % 0 - 10 % - 10 - 0 % < - 10 % European Leasing Market: CEE

15. -74% -75% -70% -38% -70% -42% -54% -70% -74% -2% -65% -76% Source: country estimates, national leasing associations and Eurostat, ING Lease calculations; adjusted for currency fluctuations 2009 outlook for CEE is very different European Leasing Market: CEE < -5 % -5% – 0% 0% – 5% > 5 – 10%  GDP growth  Growth of new leasing volumes H1 2009 > 10 % 0 - 10 % - 10 - 0 % < - 10 %

16. -25% -20% -15% -10% -5% 0% 5% Total -25% -20% -15% -10% -5% 0% 5% Real estateMovables* -25% -20% -15% -10% -5% 0% 5% MachineryICTCVsCarsBig/other * Decline of -1% if big/other excluded  European new leasing volumes per asset type in 2008 (% YoY) -5% -22% -2% +5% -11% -2% -11% -2% Annual growth rates calculated based on a homogenous sample of members reporting in the previous year Automotive assets represent more than 50% of all new leases European Leasing Market Growth

17. European Car Leasing & Rental Market  Cars purchased or financed by Leaseurope members in 2008 Source: Leaseurope estimates based on data collected in its 2008 Annual Survey NA 239.30€ (bil) 16.830.7816.05# (mil) TotalST RentalLeasing Portfolio/fleet 137.0820.14116.94€ (bil) 7.020.986.04# (mil) TotalST RentalLeasing Cars financed/purchased

18. Forecast 2009  Following extremely weak H1, new volumes in Europe will be significantly lower in 2009 Source: New volumes reported in Leaseurope Annual Enquiries; Leaseurope estimate based on H1 2009 data provided by main European markets 0 50 100 150 200 250 300 350 400 20022003200420052006200720082009f Bil € -20% -15% -10% -5% 0% 5% 10% 15% 20% New volumesAnnual growth

19. European Consumer Credit Market

20.  The voice of specialised consumer credit providers at European level  It currently represents 17 Member Associations  In turn bringing together more than 1,000 finance and credit institutions Employing over 80,000 people  Employing over 80,000 people Eurofinas members About Eurofinas

21.  Eurofinas Working Priorities  Responsible Lending and Borrowing  Consumer Credit Directive  Credit Standardisation & Disclosure  Consumer Rights  Other Initiatives of Interests Unfair Commercial Practices – Misleading Advertising – Distance Marketing Unfair Contractual Terms – Data Protection – Redress - Scoring Standardisation Alternative Dispute Resolution – Insurance Mediation – Financial Education – Scoring Transparency Interest Rates Restrictions – Anti-Money Laundering – Financial Inclusion – European Level Market Data Eurofinas Work Streams

22.  Total Eurofinas lending – period on period growth rates Includes mortgage lending and industrial credit Growth rates for new credit compare the first 6 months of the year for biannual figures, all other growth rates are annual growth rates Eurofinas Market Evolution -20,00% -15,00% -10,00% -5,00% 0,00% 5,00% 10,00% déc- 02 juin- 03 déc- 03 juin- 04 déc- 04 juin- 05 déc- 05 juin- 06 déc- 06 juin- 07 déc- 07 juin- 08 OutstandingNew Credit Xx xx juin-déc- 0809 -0.3% -10.1% -2.7% -19.1% Adjusted for exchange rate fluctuations -15.6% 0.6% Source: Eurofinas Annual & Biannual Surveys

23.  Total new credit 373 Bil € -10.1% Eurofinas Market  Total new consumer credit by product type (2008) 268 Bil € 57 079 47 471 36 740 31 169 115 366 101 922 205 769 192 534 0 50 000 100 000 150 000 200 000 250 000 300 000 350 000 400 000 20072008 MortgagesIndustrial credit Vehicle finance CC for pers consumption Mil € 1% 25% 9% 38% 16% 11% Personal loansRevolving Non-auto PosNew car finance Pos Used car finance PoSOther vehicle PoS 415 Bil € Source: Eurofinas 2008 Annual Survey

24.  New consumer credit lending & market share per Eurofinas member in 2008 Eurofinas New Consumer Credit Lending 40% 51% 17% 37% 39% 95% 36% 56% 89% 29% 0 20 000 40 000 60 000 80 000 100 000 120 000 NOCZSEPTNLFIBEDEESFRITGB Mill of € 0% 20% 40% 60% 80% 100% 120% Total consumer creditTotal lendingLocal consumer credit market share 35% Eurofinas:43.7%

25.  New credit – period on period growth rates Growth rates for new credit compare the first 6 months of the year for biannual figures while they compare 12 months for annual figures  New credit – annual growth per member (2008) DE & CZ only members to show growth in all 3 product categories Decreases in UK (largest market) contribute significantly to overall Eurofinas decline Decreases in UK (largest market) contribute significantly to overall Eurofinas decline -3% -10% -4% -12,00% -7,00% -2,00% 3,00% 8,00% 13,00% déc- 03 juin- 04 déc- 04 juin- 05 déc- 05 juin- 06 déc- 06 juin- 07 déc- 07 juin- 08 déc- 08 Personal loans Revolving Non-auto PoS Overall -60% -40% -20% 0% 20% 40% 60% NLCZITDEBEFIPTFRESGB Personal loansRevolving Non-auto PoS Consumer Credit for Personal Consumption Source: Eurofinas Annual & Biannual Surveys

26. Consumer Credit for Personal Consumption  New credit – period on period growth rates  New credit – growth per member (H1 2009 vs H1 2008) Growth rates for new credit compare the first 6 months of the year for biannual figures while they compare 12 months for annual figures juin- -20,00% -15,00% -10,00% -5,00% 0,00% 5,00% 10,00% 15,00% déc- 03 juin- 04 déc- 04 juin- 05 déc- 05 juin- 06 déc- 06 juin- 07 déc- 07 juin- 08 déc- 0809 Personal loans Revolving Non-auto PoS Overall -16.2% -13.8% -19.8% Adjusted for exchange rate fluctuations -18.5% -13.4% -7.9% Source: Eurofinas Annual & Biannual Surveys

27.  Consumer car finance – new credit granted period on period growth Vehicle Finance Growth rates for new credit compare the first 6 months of the year for biannual figures while they compare 12 months for annual figures -16% -8% -18% -13% -8% -3% 2% 7% 12% déc- 03 juin- 04 déc- 04 juin- 05 déc- 05 juin- 06 déc- 06 juin- 07 déc- 07 juin- 08 déc- 08 New CarsUsed Cars  Consumer car finance – annual growth per member (2008) -60% -40% -20% 0% 20% 40% 60% 80% 100% CZFISEPTNLBEFRNODEITGBES Approximately 74% of vehicle finance is to consumers Source: Eurofinas Annual & Biannual Surveys New CarsUsed Cars

28.  Consumer car finance – new credit granted period on period growth  Consumer car finance – growth per member (H1 2009 vs H1 2008) Vehicle Finance Growth rates for new credit compare the first 6 months of the year for biannual figures while they compare 12 months for annual figures -18% -13% -8% -3% 2% 7% 12% déc- 03 juin- 04 déc- 04 juin- 05 déc- 05 juin- 06 déc- 06 juin- 07 déc- 07 juin- 08 déc- 08 juin- 09 New CarsUsed Cars -14.2% -16.1% New CarsUsed Cars Adjusted for exchange rate fluctuations -13.9% -9.8% Source: Eurofinas Annual & Biannual Surveys

29. Consumer Credit Market in 2009 Following the downward pressure in H1, new consumer credit volumes in Europe will be significantly lower in 2009  Following the downward pressure in H1, new consumer credit volumes in Europe will be significantly lower in 2009 However there are a few glimmers of hope: consumer confidence is slightly increasing, increased savings rates can be viewed as strong potential for future consumption  Governmental support has been (unequally) available to encourage lending in an effort to boost investment & consumption  Lending conditions have eased but lenders remain concerned about the economic outlook and creditworthiness  At the same time, EU is launching its responsible lending initiative  Currently unclear what this will entail but it should not impede lending to households at this crucial time

30. Leaseurope & Eurofinas Common Work Streams  Collective Redress  IMD  Anti-discrimination  Consumer Rights Directive  Responsible Lending Initiative

31. Thank you...