Expansion in Turkey and India as De Lage Landen’s income heads north

De Lage Landen (DLL) has reported a 2.2% growth in its managed portfolio – to reach €31.5 billion (US$43.4 billion) and net income of €1.546 billion (US$2.051 billion), an increase of 6.2% compared to last year.

Conscious cost control and risk management, including impairment charges below the long-term average at 57 bps, contributed to a net profit of €402 million (US$534 million).

Chief financial officer and member of DLL’s Executive Board Frans Overdijk said: “We are very pleased with the results of 2013. By managing our costs levels while further increasing our portfolio, we achieved another year of solid, healthy growth.

“Our partnership approach to financing made a significant contribution to our positive results. By working and thinking together with our partners, we are able to create original solutions that benefit their markets.”

The company’s dedication to providing a one-of-a-kind customer experience is also reflected in its customer satisfaction rate. DLL’s biannual Partner Engagement Survey, conducted in 2013, reported a consistent result above the industry average.

Overdijk added: “The Executive Board is glad to see that our efforts and investment in our people continually pays off. And despite the call for efficiency, due to the dynamics in the global economy, we will remain flexible to address the needs in our global markets.”

Further seeking to evolve its global footprint with strong local teams, DLL opened new offices in Turkey and India in 2013. It is now supporting activities of its global customers through 5,400 employees in 36 countries. Additionally, DLL’s mobility arm Athlon Car Lease expanded to Sweden last year, now offering total mobility solutions in 10 European countries. During the year DLL’s overall portfolio showed a balanced growth in all market segments in which it is active.

Overdijk concluded: “Our way of working together alongside our partners, combined with our industry knowledge, allows us to offer customers the right tools they need in these rapidly evolving times.”

Into the Circular Economy
Recently, DLL together with Rabobank Group, signed a three-year agreement making both DLL and Rabobank partner of the Circular Economy (CE) 100 program, an initiative by the Ellen MacArthur Foundation.

This foundation is an internationally recognized player facilitating the change to the circular economy. The CE 100 program is a global platform bringing together front runners to accelerate the transition to a circular economy.

Bill Stephenson, member of the Executive Board of DLL, chief commercial officer stressed: “The move to the circular economy allows DLL to extend the economical lifetime of the assets our partners distribute in their value chains. New financial solutions provide not only more flexibility and freedom of choice for end-users, but also access to new markets,”

Members of the CE 100 program include big multinational firms operating in the B2C market like Coca Cola, Ikea, H&M, Unilever as well as DLL partners Philips, Ricoh, Desso and Cisco. The program is globally recognized as a thought leader platform on the circular economy.

Joining the CE 100 program together with Rabobank strengthens DLL’s ambition to build on its Life Cycle Asset Management strategy. By 2015 Life Cycle Asset Management aims to be established as an integral part of DLL’s value proposition towards its partners. DLL and Rabobank are the first financial organizations joining the initiative.