ARVAL: 2024 FULL-YEAR RESULTS

ARVAL: 2024 ANNUAL RESULTS

SOLID PERFORMANCE AND VERY GOOD BUSINESS GROWTH

GRADUAL NORMALISATION OF THE USED VEHICLE MARKET AFTER TWO EXCEPTIONAL YEARS

“In a context of the gradual normalisation of used vehicle prices, which were at exceptionally high levels over the last two years, Arval achieved very good performance in 2024 with a financed fleet up by 5.6% compared to 2023, to 1.8 million vehicles, and outstandings up by 19.9%. Thanks to its profitable and sustainable growth strategy, Arval’s gross operating income proved resilient and increased by 14.7% compared to 2023 excluding income from vehicle sales.

Operating expenses are well under control and grew by only 4.3%, significantly slower than the fleet, due to efficiency and digitalisation measures. Arval thus recorded a net income of €1,130 million, remaining at a very good level.

Arval is pursuing its investments in sustainable mobility with determination for the benefit of its clients’ energy transition, and has seen its CSR strategy recognised by obtaining the EcoVadis platinum medal, which places it among the top 1% of companies assessed. The electric vehicle fleet is up by 52% compared to 2023 and the launch of Arval Mobility Pass is a success with already more than 60,000 users.

I would like to thank all Arval employees for this good performance, which makes it possible to approach 2025 with confidence”, declared Alain van Groenendael, Chief Executive Officer of Arval.

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The Board of directors of Arval Service Lease met on 6 March 2025 and approved the Arval Group’s full-year results for 2024.

SOLID RESULTS: STRONG INCREASE IN THE FINANCIAL MARGIN AND THE SERVICE MARGIN BUT GRADUAL NORMALISATION OF USED VEHICLE PRICES AFTER TWO EXCEPTIONAL YEARS

Arval continues its growth in 2024 with a financed fleet that now stands at 1,796,396 vehicles worldwide, or 5.6% growth compared to 2023.

The financed fleet in the Corporate segment amounts to 1,193,302 vehicles at the end of December 2024 (+5.1 % compared to the end of December 2023). The Retail segment reached 557,089 vehicles, an increase of 10.0 % compared to the end of December 2023, attesting to the growing interest of SMEs and individuals for long-term leasing (growth in the individual customer segment amounting to 17.0%). The Arval Flex fleet (flexible medium-term subscription) stood at 46,005 cars, down 23.5 % compared to the end of December 2023, due to the better availability of vehicles for long-term leasing thanks to the gradual return to a normal level of delivery times.

The Arval fleet comprises 573,086 electrified vehicles (hybrid vehicles and electric vehicles) at 31 December 2024, up by 30.7 % compared to the same period last year. Fully electric vehicles saw very strong growth: +52.3 %, at 253,373 vehicles.

In line with its Arval Beyond strategic plan, in 2024, Arval signed numerous partnerships enabling it to continue to grow its fleet, expand its international presence and broaden its offering to propose ever more personalised support to its customers and support them in their energy transition.

• This year, Arval signed numerous partnerships with several key sector players both with car manufacturers to propose an increasingly developed offer to its customers (80 white-label partnerships now in place with 15 manufacturers), and with charging point suppliers (700,000 charging points accessible in Europe).

BNP Paribas Mobility, through Arval, BNP Personal Finance and BNP Paribas Cardif and La Banque Postale, with its consumer finance subsidiary La Banque Postale Consumer Finance (LBPCF), signed a memorandum of understanding in 2024 to set up a partnership to distribute a mobility offer to individual customers of the La Banque Postale Group.

• Arval also continues to enhance its offers and services with:
  • The deployment of Arval STAR (Strategic Transformation through Actionable Recommendations) offering to support companies in their challenges related to the energy transition, sustainability and new mobility requirements;
  • Arval Connect, which now counts 800,000 connected vehicles to offer customers and drivers value-added services on their vehicles;
  • Arval Mobility Pass, a physical or virtual card enabling its beneficiaries to easily spend their mobility subsidies, whether they benefit from a fixed Sustainable Mobility amount and/or a Mobility Credit granted by their employer;
  • At the end of 2024, Arval had more than 410,000 users of extended mobility solutions, of which 60,000 Arval Mobility Pass users; and more than
    9,000 bicycle users.

• Arval devoted more than 7,800 days of Consulting to support its customers in their energy transition, and has set up services facilitating the adoption of electric mobility and associated services, promoting a smoother experience, particularly with charging at home, in the workplace or on the go. Through numerous partnerships, Arval’s clients can now access more than 700,000 charging points.

• Arval has also launched Arval Energy, a strategic initiative to create synergies between the world of mobility and that of energy, in particular thanks to V1G, Vehicle-to-Grid (V2G) and Vehicle-to-Home (V2H) technologies. Arval has also become a member of smartEn - Smart Energy Europe, the professional association integrating consumer-focused solutions for the clean energy transition. Arval has invested in Shift4Good, the largest independent venture capital fund dedicated to decarbonising the transport industry, and has also become a partner of EVVE project (Environmental Recovery of Virtual Energy Storage), aimed at deploying 800 V2G charging stations in Europe.

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In 2024, Arval's gross income increased by 22.2%, to €19,669.3 million (€16,095.6 million in 2023), in line with business growth.

Gross operating income amounts to €2,606.5 million (-10.3 % compared to 2023), recording the impact of the gradual normalisation of used vehicle prices which experienced exceptionally high levels in 2022 and 2023 due to the lower production of new vehicles, but showing good resilience thanks to the increase in lease contract margins (financial margin) and service margins in line with the increase in financed outstandings (+19.9%).

Gross operating income, excluding income from vehicle sales, thus recorded an overall increase of 14.7 % reflecting the good growth of the business: the margin on lease contracts, at €798.1 million, increased by 18.5 % compared to 2023 and the service margin stood at €982.5 million, up 11.8 % compared to 2023.

Car sales result and expected capital gains on disposals were €825.8 million in 2024, still at a high level, in a used vehicle market where sales prices are gradually normalising after two years at exceptional levels (result of €1,129.6 million in 2022 and €1,353.6 million in 2023), and with some expected capital gains on disposals having been revised upwards.

At €1,022.6 million, Arval Group's operating expenses are well controlled. They grew much more slowly than the fleet, increasing by 4.3 % compared to 2023. The cost-income ratio stands at 39.2 % in 2024 compared to 33.7% in 2023 reflecting the impact of the gradual normalisation of used vehicle prices. The cost/income ratio excluding income from vehicle sales improved slightly to 57.4% compared to 63.2% in the same period last year, resulting from the positive effect of operational efficiency measures.

The cost of risk remains moderate at €58.9 million, or 17 basis points in relation to financial outstandings³. It is close to the level of the previous year (€53.9 million, or 18 basis points).

Operating result, at €1,525.0 million (€1,871.6 million in 2023), thus reflects the gradual normalisation of used vehicle prices compared to the exceptionally high levels of the previous two years and showed good overall resistance (-18.5%) thanks to the very good growth in outstandings.

Non-operating items totalled -€22.4 million (€20.1 million in 2023). They include the effect of the application of IAS 29 “Financial reporting in hyper-inflationary economies” within Arval's Turkish subsidiary (TEB Arval) for -€35.6 million compared to +€4.8 million in 2023.

Profit before tax at €1,502.5 million (€1,891.8 million in 2023) is down by 20.6 %.

Net income thus stands at €1,129.9 million, down by -19.2 % compared to 2023, reflecting the impact of the gradual normalisation of used car prices after two exceptional years (net income of €1,249.2 million in 2022 and €1,398.1 million in 2023). Net income, Group share amounts to €1,087.4 million (-21.2 % compared to the same period of 2023).

Despite the gradual return to normal in vehicle sales, Arval achieved good performance in 2024, resulting from the good growth in its business as well as financed outstandings. These solid results testify to the success of its long-term leasing business model as well as the diversification of its customer bases, the geographical areas in which it operates and its products.

The balance sheet total shows growth of 8.1 % compared to 2023 to reach €47,915 million at the end of December 2024 related, in particular, to the growth of the fleet and the increase in vehicle prices. Total equity amounts to €4,550 million at the end of December 2024 (€3,980 million at the end of December 2023).

As part of the preparation of its future strategic plan, Arval is extending its Arval Beyond plan by one year, with a fleet target of 2 million vehicles by 2026, including 400,000 electric vehicles.