ALD Presents Its New 5-year Strategic Plan “MOVE 2025”

ALD is holding a Capital Markets Day for financial analysts and investors to present the company’s new 5-year strategic plan “Move 2025”.

Tim Albertsen, Chief Executive Officer, and members of the ALD Executive Committee will provide a detailed overview of the company’s ambitions and the main strategic operational and financial objectives in the context of its new strategic plan.

“Move 2025 is an ambitious plan which leverages the transformation that we started 5 years ago to seize growth opportunities that we see in the medium to long-term future. With this new strategic plan, ALD is positioning itself at the heart of the evolving mobility world and is strengthening its competitive edge to become a fully integrated sustainable mobility provider and the global leader in its industry,” confirms Tim Albertsen, Chief Executive Officer of ALD.


Four strategic pillars

ALD’s strategic development is based on four strategic pillars which aim to strengthen the company’s competitive edge:

  • Move for Customers – Be recognised as the most innovative provider of mobility products and services through digitalisation, customisation, flexibility, excellent customer experience and a unique mobility brand.

  • Move for Growth – Be the global leader in sustainable mobility solutions by extending geographical coverage and customer reach with new partners in the mobility ecosystem, value-accretive acquisitions and new mobility solutions.

  • Move for Good – Place people and corporate social responsibility at the heart of the business model.

  • Move for Performance – Generate value over the economic cycle within a robust business operating framework to grow the company in a cost efficient manner.

Move 2025’s ambitions translate into four key deliverables to drive sustainable growth

Full Service Leasing & Fleet Management
ALD is a resilient business with significant growth potential in each of its four client segments: multinationals and large corporates, SMEs, corporate employees and private consumers.

The number of ‘Total Contracts1’ managed by ALD is expected to reach c. 2.3 million by 2025, including growth through bolt-on acquisitions. Both direct and indirect channels are expected to contribute significantly to this growth, with a slightly faster rate of increase for the latter, notably thanks to ALD’s leading private lease digital platform.

ALD is the N°1 provider in Europe with the widest direct coverage globally and plans to expand its geographical presence further, including in Asia, targeting up to 50 countries, accompanying its large corporate clients.

Main other organic growth drivers will be private lease and new mobility products2, which are expected to increase at a c. 15% CAGR over 2019-2025, especially in ALD Flex (units3 doubling to c. 60,000 by 2025) and Used Car Lease (reaching c. 125,000 units by 2025).


The future is multi-cycle and multi-channel
Move 2025 will transform ALD’s business model to one where vehicles are leased for longer, in some cases for the entire lifespan of the vehicles, by building on an opportunistic selection process and market-driven pricing strategy for multi-cycle leasing, used car sales and multi-channel distribution.

ALD expects c. 30% of its used vehicles to be sold or leased to retail customers by 2025 with Used Car Lease reaching a total of c. 125,000 vehicles. This evolution will bring strong growth and margin opportunities while simultaneously reducing residual value risk.

ALD Carmarket for consumers, based on a Clicks ‘n Bricks approach, will be implemented in 25 countries to support these ambitions, leveraging on ALD’s state of the art digital platforms and network of physical showrooms.


Driving investment in digital capabilities
An incremental budget of EUR 66m will be allocated to digital investments over the next 5 years across all four strategic pillars, raising the share of investment in digital capabilities from c. 20% of operating expenses in 2017-2019 to c. 23% in 2020-2025.

The electric mobility opportunity for ALD
As the first mover in the powertrain transition, ALD will continue to lead the market in the shift to low emission vehicles by accompanying clients through a TCO4-based approach, an all-inclusive EV4 offering, targeted EV partnerships and a global EV Programme.

The share of Electric Vehicles5 in new car deliveries is expected to rise to c. 30% by 2025. By 2030, ALD is targeting c. 50% of deliveries to be Battery Electric Vehicles.

As a result, average CO2 emissions per vehicle6 for new contracts in 2025 are expected to be at least 40% below those of 2019.


Read the full information on ALD Strategic Plan “Move 2025” here.