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_Just drive 09_10 www.arval.com arval yearbook_09_10 _expertise _CONTENTS WHAT MAKES ARVAL A TRUSTWORTHY PARTNER? 02-03 IN THE CURRENT ENVIRONMENT, IS FULL-SERVICE LEASING STILL A SUITABLE SOLUTION FOR COMPANIES? 04-05 • The Vision of Laurent Tréca, Chairman and CEO HOW DID THE FULL-SERVICE LEASING SECTOR AND ARVAL DEAL WITH THE TURBULENCE THAT AFFECTED THE CORPORATE VEHICLE MARKET? 06-11 • Has the full-service leasing sector suffered from the increasing economic difﬁculties? 08 What are the prospects for the coming period? • How has Arval’s volume of business evolved? 10 What strategy has been implemented to support and reassure Arval’s customers? • Interview of Thierry Lachaux, Group Deputy Managing Director 11 “Get better value from our expert advice and fast, accurate service.” HOW DOES ARVAL’S OFFER CONTRIBUTE TO STREAMLINING FLEET MANAGEMENT? 12-23 • How do you design a car policy that is both economical and responsible? 14 What resources can Arval rely on to offer its expert advice? • Interview of Philippe Noubel, Member of the Board, Group Deputy Managing Director 15 • How does Arval take into account new mobility needs? 16 In terms of vehicle leasing, is there an alternative to long-term contracts? • What services help to optimise customers’ environmental impacts? 18 What does Arval offer to improve driver safety? • What reassurance of service quality do Arval customers have? 20 How does Arval combine speed and accuracy when servicing customers? • How are ends of contract managed? Through which distribution channels can one purchase Arval’s end of contract vehicles? 22 HOW DOES ARVAL MEET THE NEEDS OF ITS INTERNATIONAL CUSTOMERS? 24-28 • What are the solutions for managing several ﬂeets harmoniously? 26 How are markets evolving in the Arval countries? • Arval turns 20: what assessment can be made about this business period? 28 00-01 arval yearbook_09_10 _proﬁle _EIGHT GOOD REASONS TO CHOOSE ARVAL: • expert advice offered daily by all the Arval teams, and a structure dedicated to managing costs, streamlining processes and reducing the environmental impact of customers’ ﬂeets: “Arval Consulting”; • the ability to anticipate and outsource market risks, particularly those relating to the resale of second-hand vehicles, with consistent attention to improving the resale value of second-hand vehicles (Arval Trading, MotorTrade, Autovalley, etc.); • the Arval Service Charter: clear information about service levels for customers and drivers; • a quality business relationship, as demonstrated by the results of on-going surveys of our customers (ﬂeet managers and drivers); WHAT MAKES ARVAL A TRUSTWORTHY PARTNER? A specialist in full-service, multi-brand automobile leasing, Arval offers companies tailored solutions that optimise their employees’ mobility and outsource the risks associated with ﬂeet management. Expert advice and service quality, which are the foundations for our brand promise, are delivered in 22 countries by over 4,000 employees. Our staff are dedicated to the complete satisfaction of our customers: professionals, SMEs and large groups. Arval is Europe’s No. 2* full-service leasing company, a subsidiary of BNP Paribas, European banking and ﬁnancial services leader, and one of the world’s six safest banks according to Standard & Poor’s. Within BNP Paribas Retail Banking, Arval belongs to the “Equipment Solutions” business line, which offers companies and individuals a range of speciﬁc solutions from vehicle ﬁnancing to ﬂeet management. * ﬁnanced ﬂeet • customers cared for by dedicated “Account Teams”; • practical solutions for ensuring that your corporate ﬂeet reﬂects your CSR objectives (environment and safety), and online tools for measuring their impact; • a network of subsidiaries and partners in 39 countries and global ﬂeet management by teams at the International Business Ofﬁce (IBO); • a secure partner, wholly-owned subsidiary of BNP Paribas, one of the world’s six safest banks according to Standard & Poor’s. 02-03 arval yearbook_09_10 _vision In the current environment, is full-service leasing still a suitable solution for companies? Steady market share, loyal customers, a conﬁrmed second-place While difﬁcult at times for full-service leasing players, 2009 did ranking in the European market... in 2009, Arval demonstrated demonstrate the effectiveness of this type of ﬂeet management. its solidity in an erratic environment. After a lengthy period of By transferring the risk of lost resale value for ﬂeets to the growth, the European full-service leasing market has registered leasing company, full-service leasing served as a shock-absorber the effects of the global economic crisis. 2009 witnessed a slight for the economic crisis. shrinkage of ﬂeets, and a reduction in the number of vehicle registrations. This trend, exacerbated by an unprecedented An additional advantage whose importance was highlighted drop in resale prices for second-hand vehicles, was a heavy by the economic difficulties: the ability to control and blow for some members of our profession. optimise the total cost of ownership of corporate vehicles. Insurance, maintenance, tyre management, roadside assistance, Arval’s success in maintaining good performances is due in replacement vehicles in case of a breakdown, and most other part to our ability to predict and estimate the level of risk on services if included in the leasing fees, also gave the advantage the second-hand vehicle market: at the ﬁrst warning signs, of reliable budget forecasting. we reacted by adjusting our fees based on the latest forecasts. Contract extensions also constituted a decisive strategic choice, Arval’s expertise in rationalising ownership costs played a in that they spared us from needing to dispose of vehicles in a decisive role in strengthening our existing sales relationships. depressed market. In addition, this strategy allowed us to offer We also owe some signiﬁcant new contracts to this factor a reassuring alternative to many customers who were hesitant like that shared with another international leasing company, to renew their ﬂeets. the GDF Suez ﬂeet (43,000 vehicles). Due to its sheer volume, To meet it effectively, Arval can count on a combination of advantages nearly unequalled in Europe: balanced geographic coverage, a reporting system adapted to all levels of ﬂeet management, and excellent coordination between teams. 2009 also had symbolic value, as the year of Arval’s 20th anniversary. Examining the progress achieved by our company clearly highlights the quality of our product, our methods and our employees. I also see the signs of very strong “ While difﬁcult at times, growth potential, which motivates us to adapt our services in order to help 2009 did demonstrate our customers improve their mobility and better concentrate on their core business. From this perspective, one of our priorities is to help improve driver behaviour – which has a considerable impact on the cost of a ﬂeet – by the effectiveness ” generalising in particular embedded telematics tools. Arval’s other challenge for the coming years will be to establish itself in new countries and achieve of full-service leasing. the dimensions of a global leader. Laurent Tréca, Chairman and CEO Laurent Tréca, Chairman and CEO 04-05 arval yearbook_09_10 _market and performance HOW DID THE FULL-SERVICE LEASING SECTOR AND ARVAL DEAL WITH THE TURBULENCE THAT AFFECTED THE CORPORATE VEHICLE MARKET? The full-service leasing market was spared the systemic difﬁculties that impacted the automotive industry for a while, but could not, eventually, hold off a very signiﬁcant drop in vehicle registrations in 2009. Far from calling into question this ﬂeet management model, however, the current environment strengthens it: full-service leasing allows companies to avoid suffering the ﬁnancial consequences of the loss of resale value of their ﬂeets. This all-important advantage, complemented by the expansion of our consultancy approach and the implementation of a contract extension strategy, allowed Arval to maintain its business levels and to ensure the loyalty of its customers during the past year. _contents 08-09 HAS THE FULL-SERVICE LEASING SECTOR SUFFERED FROM THE INCREASING ECONOMIC DIFFICULTIES? WHAT ARE THE PROSPECTS FOR THE COMING PERIOD? 10-11 HOW HAS ARVAL’S VOLUME OF BUSINESS EVOLVED? WHAT STRATEGY HAS BEEN IMPLEMENTED TO SUPPORT AND REASSURE ARVAL’S CUSTOMERS? 06-07 arval yearbook_09_10 Has the full-service leasing sector suffered from the increasing economic difficulties? What are the prospects for the coming period? Registrations and vehicle ﬂeet impacted by the economic crisis Although full-service leasing now ranks ﬁrst among ﬂeet management models for corporate vehicles, this solution was still subjected to the major downward trend in vehicle registrations that was witnessed in 2009: -16%, while the number of corporate vehicle registrations decreased by 18%. After a 4% increase in 2008, the full-service leasing vehicle ﬂeet shrank by 2%. With a total of 6,800,000 units at end-2009, the ﬂeet nonetheless shows growth when considered over the past three years. Evolution 2009 vs 2008: estimates Sources: European Automobile Manufacturers’ Association (EAMA); national professional trade unions Reference market: AT, BE, CH, CZ, DE, ES, FR, GR, HU, IT, NL, PL, PT, RO, SK, TR, UK A profoundly changing sector Although the economic model represented by full-service leasing emerged strengthened from the past year, the sector was noticeably shaken up by the difﬁcult economic conditions. Some companies are in the process of withdrawing from the market, and others could still face signiﬁcant difﬁculties in 2010 and beyond. In this environment, customers are showing greater concern for the solidity of their full-service leasing partner, as well as the consistency of the pricing offer. Renewed increase in registrations and changed accounting concepts on the horizon Among the major events that are set to impact the full-service leasing market are the continued movement towards concentration of the sector, and the economic upturn, perhaps even an accelerating rise in the number of vehicles put on the road. In the regulatory arena, the IASB* accounting standards reform should lead to entry of full-service leasing into lessees’ balance sheets, which would only be the case for listed companies. However, while the reconsolidation of leased capital and industrial assets could be massive, the quantitative impact of leased ﬂeets on the balance sheet and proﬁt and loss statements would be proportionally minimal. The new constraints required by accounting processes which the reform would bring about therefore appear superﬂuous. Arval is at the forefront in supporting this viewpoint and defending the interests of the companies concerned. * International Accounting Standards Board MARKET AND PERFORMANCE The second-hand market severely and sustainably impacted After experiencing a historic collapse in 2008, the second-hand vehicles market continued to suffer before beginning a slow recovery, with variations by country. Delayed purchasing decisions made by consumers during times of economic crisis, but also the measures taken by governments to subsidise and sell new vehicles, are among the main factors leading to decreased resale values. In the short and medium term, the second-hand vehicles market will probably not be able to rise back to the levels it experienced before the economic crisis. Certain prospects, such as changes in models’ lifecycle, the reduced purchasing power assigned to automobiles, or the deteriorating social perceptions of motor vehicles could even indicate a sustained downward trend for the market. Getting back to the equilibrium price Oil prices have ﬂuctuated in strong correlation with the changes in economic indicators. After falling sharply during the second half of 2008, the Brent crude oil price per barrel began to rise again, while continuing to remain below 50 dollars during the ﬁrst few months of 2009. The rise trend was conﬁrmed over the second part of the year, supported by the initial signs of economic recovery in the Western World and through a return to sharp growth in emerging countries such as China and India. At the end of 2009, the Brent crude oil price per barrel amounted to around 72 dollars, equivalent to the average levels in 2007. This equilibrium price has the advantage of allowing investments to be resumed in research and oil production without however hampering economic recovery in developed countries. “ In 2009, our customers’ most frequently asked question was: how to manage the fleet more effectively? “ In response to this, we provided professionally prepared solutions to optimise TCO*, key in times of crisis. Through this position of advisor, we offered genuine added value. Lucia Urbanová, Sales Manager, Arval Slovakia Main factors impacting TCO* Variation of €100 in forecasts for the second-hand vehicle market = +/- €3 per month Variation of 1% in ﬁnancing costs = +/- €8 per month Decreased fuel consumption: 1litre / 100 km = - €25 per month Variation of €0.10 per litre = +/- €20 per month Source: Arval * Total Cost of Ownership 08-09 arval yearbook_09_10 How has Arval’s volume of business evolved? What strategy has been implemented to support and reassure Arval’s customers? Strengthened positioning despite the crisis As in the two previous years, Arval achieved results surpassing those of its market. Its leased ﬂeet registered 1% growth over twelve months at end-2009, while the total full-service leasing vehicle ﬂeet decreased by 2%. With 608,000 ﬁnanced units, Arval represents 8.6%* of the European market and maintains its position as second-leading full-service leasing company for this segment. The managed ﬂeet, which also includes vehicles leased under “ﬂeet management” contracts, included 681,500 vehicles at end-2009, a 1% reduction. As a result of the economic crisis, but also the extension of existing contracts, the number of new vehicles entering the ﬂeets decreased by 32%. Sales of Arval vehicles at contract end rose by 2% compared with 2008. Evolution 2009 vs 2008: estimates Sources: European Automobiles Manufacturer’s Association (EAMA); National Professional Trade Unions Reference market: AT, BE, CH, CZ, DE, ES, FR, GR, HU, IT, NL, PL, PT, RO, SK, TR, UK * estimate 220,100 - 1%* Leased vehicles ﬂeet for Arval subsidiaries at end-2009 123,600 +6%* 77,800 -3.5%* 2,900 62,900 +17%* 47,100 -2%* 29,500 22,500 24,500 -1%* +0.5%* -15%* Oth ther Other Belgium i Belgi m Germany Netherlands German Netherlands l Spain i Kingdom Ital Spain United Ki t Italy France subsidiaries * 2008/2009 growth rate MARKET AND PERFORMANCE 2009 KEY FIGURES: 8.6%** market share in Europe 22 subsidiaries around the world 608,000 vehicles leased (+1%*) 681,500 vehicles managed (-1%*) 142,500 vehicles purchased (-32%*) 140,000 vehicles sold (+2%*) 1,268,000 fuel cards managed (-8%*) * 2008/2009 growth rate ** estimate, leased ﬂeet Thierry Lachaux, Group Deputy Managing Director The impact of the economic downturn on Arval’s “New territories” growing rapidly business has been limited. How do you explain this? In times of economic crisis, customers tend to turn to the most reliable It is in the countries where Arval has set up new and professional companies. This perfectly describes Arval, whose subsidiaries that the company registered the strongest development has always been supported by BNP Paribas, one of the most solid banking groups in Europe. Added to this are the efforts we growth of its leased ﬂeet. Brazil (+130%), Turkey (+150%) have long been making to improve our organisations as well as the and India (+200%) make up the leading trio. Overall, the quality of service they deliver. For example: the rollout in all subsidiaries number of Arval vehicles leased in emerging markets of the ACE (Continuous Efﬁciency Improvement) programme, which is increased by 17% in 2009. inspired by Lean-Six Sigma methods and aims to eliminate the costs of lack of quality by optimising processes. What was your response to the downturn in the second-hand market? What are the trends for 2010-2011? In the countries we only entered recently, the volumes of returned vehicles are still limited. In the other markets, where the majority of Arval plans to continue the growth of its leased ﬂeet at our ﬂeet is located, we beneﬁted from investments made before the a moderate pace for the 2010-2011 period. Development economic crisis to strengthen our second-hand vehicle resale tools in the “new territories” should play a key role in this and methods. We had in particular tested in Spain, then rolled out across Europe, a new Internet platform for resale to professionals growth. Another expected outlook: the anticipated (MotorTrade). increase in vehicle returns (around 25% in 2010), due to the extension of many long-term leasing contracts How did Arval help its customers in 2009. to survive the worst of the economic crisis? Firstly, our full-service leasing contracts protect companies against residual value risks arising from the crisis of the second-hand markets. Arval also responded quickly to the new circumstances dictating its business, and communicated clearly on this point: As often as necessary, we extended existing contracts in order to reduce ﬂeet TCO* and the operating costs paid by our customers. * Total Cost of Ownership 10-11 arval yearbook_09_10 _offer HOW DOES ARVAL’S OFFER CONTRIBUTE TO STREAMLINING FLEET MANAGEMENT? Today there are a number of factors that enter into the total cost of usage of vehicles, which makes ﬂeet management much more complex. In this situation, the satisfaction of each professional, SME or large group is determined by solutions that take into account both operational efﬁciency and economic realities. This is why Arval centres its strategy around its customers, with the aim of listening to them to continuously adapt our offer and reﬁne our expertise. This approach, profoundly anchored in our employees’ psyche, is expressed through two major commitments: applying our experience to deliver expert advice and offering superior service. _contents 14-15 HOW DO YOU DESIGN A CAR POLICY THAT IS BOTH ECONOMICAL AND RESPONSIBLE? WHAT RESOURCES CAN ARVAL RELY ON TO OFFER ITS EXPERT ADVICE? 16-17 HOW DOES ARVAL TAKE INTO ACCOUNT NEW MOBILITY NEEDS? IN TERMS OF VEHICLE LEASING, IS THERE AN ALTERNATIVE TO LONG-TERM CONTRACTS? 18-19 WHAT SERVICES HELP TO OPTIMISE CUSTOMERS’ ENVIRONMENTAL IMPACTS? WHAT DOES ARVAL OFFER TO IMPROVE DRIVER SAFETY? 20-21 WHAT REASSURANCE OF SERVICE QUALITY DO ARVAL CUSTOMERS HAVE? HOW DOES ARVAL COMBINE SPEED AND ACCURACY WHEN SERVICING CUSTOMERS? 22-23 HOW ARE ENDS OF CONTRACT MANAGED? THROUGH WHICH DISTRIBUTION CHANNELS CAN ONE PURCHASE ARVAL’S END OF CONTRACT VEHICLES? 12-13 arval yearbook_09_10 How do you design a car policy that is both economical and responsible? What resources can Arval rely on to offer its expert advice? Car policy: a strategic tool for companies Drafting an appropriate car policy helps to manage the total cost of ownership of a vehicle ﬂeet while ensuring that it has a high level of performance in terms of environment and safety. Therefore, Arval designs all-in-one solutions together with our customers that include not only the choice of vehicles, but also fuel consumption, taxes, the costs associated with CO2 emissions and driver training. Arval Consulting, at the forefront of streamlined ﬂeet management Arval Consulting is a dedicated consulting structure comprising a team of experts from different countries who are all working towards four core objectives: controlling costs, streamlining processes, reducing environmental impact and choosing vehicles that are most adapted to their professional usage and driver satisfaction. Its services are based on consideration of TCO (Total Cost of Ownership), which makes it possible to analyse and compare all the cost parameters (acquisition, utilisation, resale). In 2009, customers who had adopted this approach were able to predict the rising cost of ﬁnancing their ﬂeets and modify their vehicle selection strategy so as to better manage or even reduce their budgets, generating savings of €390 on average per vehicle. Arval Consulting experts carried out more than 100 assignments in 2009 alone. Those focused on cost reduction gathered over 4 million euros of savings whereas an increasing number looked at corporate social responsibility and reduced CO2 emissions by more than 5,000 tonnes. As a result of a sustained internationalisation initiative, more and more companies have been using this service, which registers a customer satisfaction level of 94%. Advise Manage Commit Report THE FOUR DIMENSIONS OF OUR BUSINESS PHILOSOPHY ADVISE DVISE V MANAGE REPORT We support our customers Arval takes care of all aspects of operational Arval generates the data needed for ﬂeet in the continuous optimisation of their TCO*: management of vehicles and drivers: management and decision-making: • improving their company car policy, • ﬁnancing, • strategic business reviews • managing technical risks from purchase through • helping with vehicle selection and ordering, and operational ﬂeet reviews, to vehicle resale, • delivery, • ﬁnancial statements, • advice and recommended solutions • maintenance and repair, • calculating CO2 emissions, for full outsourcing, • tyre management, • calculating fuel consumption, • managing total cost of ownership • fuel management, • identifying anomalies. and optimising budgets, • 24/7 roadside service, • supporting HR policies, • insurance and accident management, • applying best practices in terms of environmental • driver services, protection and road safety. • road safety measures. * Total Cost of Ownership QUOTE: Arval guarantees that it will send out quotes to each client within 4 hours and answer the phone within 3 rings, which proves our fast OFFER Dedicated services and a global approach to fuel management Year after year, Arval has progressively broadened its support to companies in better managing their fuel costs. This commitment is notably expressed in the development of solutions for reducing consumption, and thereby also the environmental footprint of vehicle ﬂeets. We not only provide customers with speciﬁc analysis tools to help reduce their fuel consumption, but also offer fuel policy optimisation support, training in responsible driving, and a selection of vehicles powered by alternate energy sources (LPG, NGV, hybrid, electric). Arval continues to be the leading fuel management provider in the United Kingdom, with more than one million fuel cards in use and proven expertise in managing fuel costs. Philippe Noubel, Member of the Board, Group Deputy Managing Director Insurance: everything you need to streamline costs and limit downtime What makes automobile ﬂeet management Immediate roadside assistance following an accident, towing and more and more complex? expert appraisal, replacement vehicle, cash advance for repairs: Just a few years ago, companies evaluated the efﬁciency of their Arval offers integrated management of every issue associated ﬂeet management based on a purely economic criterion: what with a claim. The 362,000 contracts held at end 2009, including appeared to be the least expensive was therefore the best. Since then, 30,000 via its subsidiary Greenval Insurance, are evidence of our however, with the rise of environmental awareness, the factors that go into these decisions have become more diverse. Large companies, ability to perfectly meet the speciﬁc needs of companies using full- for example, are often prepared to pay a little more to be able to service leasing. For the most effective possible management of total demonstrate their corporate social responsibility. cost of ownership, Arval also promotes accident prevention through What tools exist to integrate targeted and individualised plans. these new decision factors? Technological change creates new action tools. We use electronic boxes to collect data on vehicle use, which we know to be determinant for consumption, CO2 emissions and accident rates. In general, a specialist in ﬂeet management is needed to handle the increasing number of factors that go into calculating the Total Cost of Usage by which I mean the TCU, not the TCO, or total cost of ownership. Only such a specialist is able to fully analyse a subject of the complexity of automobile taxation, for example. COMMIT Commitment is the cornerstone Could the economic crisis cause companies to turn of our added value. It reﬂects our passion, away from a “socially responsible” approach? our professionalism and our customer-centric There is no reason for us to think so, because sustainable development approach: has become a core component of the corporate strategy of many • a socially responsible policy focused on sustainable companies, in particular in terms of human resources. And also, development, many of the choices that lead to optimising costs – such as reducing • risk-free ﬂeet management ﬁnancing solutions, consumption – are intrinsically “virtuous”. It will be especially • continuous expert advice, interesting to observe how companies greet electric vehicles, as • consistently optimal service quality, these do in fact, in the short term, dissociate economic interests • creation of speciﬁc measurement (electric vehicles will remain, initially, a rather expensive solution) and monitoring tools. and environmental concerns! reaction and availability. Arval Belgium – Nico Van Hove, Manager Purchase & Maintenance 14-15 arval yearbook_09_10 How does Arval take into account new mobility needs? In terms of vehicle leasing, is there an alternative to long-term contracts? Environmentally responsible driving: measuring for progress! Arval has introduced the “Measure & Management” programme to help streamline the economic and social performance of corporate automobile ﬂeets. Developed in collaboration with a group of pilot customers in the Arval Innovation Club, this programme relies on two complementary elements: training for environmentally responsible driving, and monitoring vehicle use with an embedded telematics solution. The goal is to directly impact driver behaviour, an approach which constitutes one of Arval’s major added values. “Measure & Management” organises training in best driving practices for representative “ With the objective to offer our customers permanent assistance in steering the performance of fleet management, Arval users who choose to participate, targeting in particular road safety, good vehicle has developed “Arval Analytics”, an innovative management and environmentally sound driving. At the same time, test vehicles are decision making web-based application assisting equipped with electronic boxes that are able to analyse, monitor and compare key them in managing and optimising their fleet. indicators (mileage, fuel consumption, CO2 and particulate emissions, elements related The decision-maker has access to detailed, to vehicle condition, etc.). Automatic daily transmission of data makes it possible to consolidated key performance indicators in just measure differentials between trained and untrained drivers, to identify performance a few clicks: composition of the fleet, associated factors and to rapidly implement targeted corrective action. costs and main management events. “Arval With the “Measure & Management” programme, Arval is the ﬁrst leasing company to Analytics”, already rolled out in 16 countries, automate transmission of data generated by computers linked to the onboard boxes. also offers a simulator making it possible to After rollout in France, Poland, Hungary and the Czech Republic, this service should anticipate the impact of strategic decisions quickly be extended to all Arval subsidiaries. ” on TCO* and also on the CO2 impact of the car fleet. Grégoire Chové, Group Sales Director * Total Cost of Ownership QUOTE: “Our accident management team handles the consequences of approximately 25,000 accidents per year, coordinating all process QUOTE: “As we believe that the first step towards efficient fleet management is a properly constructed car policy, we consider it very OFFER Facilitating driver mobility with the latest mobile technologies Mobile drivers require mobile applications. Arval has taken this need to heart in developing the very ﬁrst iPhone application (also available for Smartphones on a mobile internet site) for the full-service automobile leasing market. Launched in France in May 2010 and available free of charge, “Arval Mobile” allows direct contact with certiﬁed Arval partners or the driver service department, and plans a route to the selected location. Using GPS coordinates from its connected terminal, the system can identify and locate the nearest service point for vehicle maintenance or repair, or for tyre changes. “Arval Mobile” makes it easier to manage both emergency situations and regular maintenance planning. Its extension to additional subsidiaries is planned to begin in second-half 2010. Louveo: a new entity, a new business Created within Arval in 2009, Louveo (www.louveo.com) offers an innovative solution halfway between short- and long-term leasing. Its core business is leasing reconditioned vehicles for six- to 24-month periods, following their initial contract period. Louveo stands out for its all-inclusive service, covering maintenance, insurance, roadside assistance, tyre management, etc., as well as for the types of vehicles available. Any speciﬁc or isolated issues that customers may experience in managing their car ﬂeet – the need for a vehicle during a new employee trial period, for a short-term assignment, a temporary increase in work, etc. – are also included. The innovative Louveo sales approach is based on transactional web applications. participants: body shops, insurance companies, rental companies, experts, etc.” Arval Germany - Frank Reuter, Team Leader Service Center important to advise both our customers and prospective customers in this area.” Arval Belgium - Yves Ceurstemont, Sales Team Leader 16-17 arval yearbook_09_10 What services help to optimise customers’ environmental impacts? What does Arval offer to improve driver safety? Taking responsibility and seizing opportunities: the foundations for Arval’s commitment to sustainability More and more companies are becoming proactive when it comes to issues of social and environmental responsibility. At Arval, we believe it is part of our mission to support these commitments. First of all, due to the size of our ﬂeet, which means that any large-scale improvement programme can have a signiﬁcant impact. And secondly, because the management tools developed by Arval to promote optimised ﬂeet management policies give evidence every day of their effectiveness in all areas of sustainable development. CVO, a tool for promoting awareness and action Ongoing research and the multiplicity of environmental innovations in the automobile sector make it increasingly difﬁcult for ﬂeet managers to take and document well-founded decisions. As a supplier of mobility solutions, Arval devotes every possible effort to providing independent and useful information. To achieve this, the Corporate Vehicle Observatory (CVO, Observatoire du Véhicule d’Entreprise or OVE in France) was created by Arval in 2002. This platform of experts is unique in the ﬁeld, delivering targeted information about ﬂeet ﬁnancing and management, the environment, road safety promotion and new technologies. Its main focus: Identifying and comparing current and upcoming trends in eleven European countries as well as in Brazil, India and Turkey. The CVO expanded its communications role in 2009 with the publication of brochures on electric vehicles, future energies, economical tyres, etc. Optimisation through analysis and comparison: the key to our added value Arval constantly modiﬁes its speciﬁc offers to support our customers in implementing an environmentally friendly car policy that is still compatible with their economic requirements and their human resources goals. This approach includes support in selecting vehicles and drive technologies, advice for streamlining business travel, and enlisting drivers in the ﬁght against pollution and waste. All the solutions proposed by Arval are tested by our subsidiaries before being offered to our customers. Among them, the reduction in ﬂeets’ carbon footprints, carried out in three phases – measurement, optimisation and offsetting – to ensure the greatest effectiveness. This is also the logic behind the creation of the “Measure & Management” programme (see page 16). QUOTE: “It is clear that the problem of climate change is far too big to tackle alone. After reducing or avoiding our ﬂeet emissions, we intend business requirements through Total Cost of Ownership. We also aim to help them to reach the target CO2 efﬁciency rate improvements with OFFER A major player in improving road safety In July 2009, Arval signed the European Road Safety Charter, part of a vast initiative by the European Commission to slash road deaths in half. Since 2007, Arval has been progressively introducing driver training for safety and environmental awareness in all the countries where we do business. We are determined to go even further by guiding our customers in choosing appropriate safety tools and, more broadly, helping to raise their awareness in the area of road safety. Promoting ethical principals A signatory of the United Nations Global Compact since 2004, Arval is committed to ten fundamental principles that contribute to sustainable development and respect for human rights. Far from being a mere formality, this approach is expressed, for example, in a series of initiatives designed to encourage suppliers to raise their standards. In the future, any non-compliance with the obligation to inform Arval of an infringement of the Global Compact’s principles may constitute a breach of contract. Heading towards “zero emissions” mobility Arval and Renault announced the signing of an electric vehicle joint venture agreement in 2009. The goal is to accelerate implementation of innovative shared solutions within the Renault-Nissan Alliance electric vehicle project. Arval will participate in creating new leasing offers speciﬁcally tailored to this new energy source. Arval signed a similar agreement with PSA. to give advice to our customers to support the choice of the right technology vehicles where the cost of change might be applied to meet the creation of a new Company Car Policy.” TEB Arval (Turkey) - Koray Yilmaz, Sales Director 18-19 arval yearbook_09_10 What reassurance of service quality do Arval customers have? How does Arval combine speed and accuracy when servicing customers? The Service Charter, foundation of our brand promise Arval’s key commitment to our customers is what differentiates us from our competitors, and is a powerful source of customer relationship: service quality is a core strategic issue for our company. To best ensure that our customers are completely satisﬁed, we have a formal Service Charter that details the full range of promises associated with our offer including measurable performance indicators. The progressive rollout of our Service Charter in all the countries where we operate allows Arval to ensure the quality of its services at an international level. Sharing best practices within a joint approach Arval demonstrated its commitment to implementing a service quality policy by designating a manager in 2009 to centralise this function for the company as a whole. This manager’s role is to support subsidiaries in making dedicated resources available and in designing initiatives to support continuous improvement in customer satisfaction. Several concrete initiatives have already been taken, such as providing subsidiaries with a self-assessment tool that allows them to evaluate their progress in six action areas. Country action plans are being designed and implemented based on the results of this tool, as well as local strategies and environments. QUOTE: “In 2010, several initiatives were taken to improve service quality, including the creation of the position of Network Manager, whose Arval Morocco - Khalid El Otmani, Director of Operations OFFER Spotlight on customer satisfaction Arval carries out numerous surveys in the different countries to identify the level of service that our customers feel they are receiving. To better understand the factors that create customer loyalty and be able to propose initiatives for improvement, Arval has designed a global inquiry with the survey institute TNS Sofres. It was implemented in nine countries in 2009, and renewed by all subsidiaries at the start of 2010. Speed, accuracy, expert advice, commitment... The major components of the Arval brand promise are generally well-rated by ﬂeet managers. However, the survey’s primary value is in identifying areas for improvement based on a comparison of results between countries, as well as between Arval and other service companies. A survey of driver perceptions will be conducted along the same principles in 2010-2011. This will allow us to access a population whose expectations and satisfaction levels are so far less known. Arval has chosen an online survey format that will collect information about customers’ views of the service quality associated with certain speciﬁc events (maintenance, breakdowns, etc.). “Account Team”, a unique team at your service: a promise without equal in the market Every customer wants the same things: to be able to rely on a dedicated contact on a daily basis, receive an immediate response to most requests, and be connected with the right expert right away for more complex issues. By generalising its “Account Team” organisation, Arval intends to make this “ level of service a reality for a growing number of companies. Successfully As a purchaser I want to give Arval’s launched and tested by the Dutch subsidiary, the model consists of uniting customers the best, not only what they ask the various functions that are part of the life of a contract. In practice, the for, but what they’ve always wanted. To meet customer portfolio is distributed among several teams. Within each team, an “ this objective, I work hand in hand with our “Account Manager” answers incoming calls and processes requests that arise, dealers and subcontractors. where necessary calling on the operational functions – maintenance, insurance, roadside assistance, etc. – to provide their support. After the Netherlands, David de Gelder, Senior Purchaser, Belgium, Portugal, Switzerland, Poland, Turkey, Austria and Russia, the “Account Arval Netherlands Team” structure is currently being rolled out in four countries: Greece, the Czech Republic, Romania and Slovakia. The programme will then continue in other countries. role is to select and audit partner garages, and the renewal of our network of companies leasing replacement vehicles.” 20-21 arval yearbook_09_10 How are ends of contract managed? Through which distribution channels can one purchase Arval’s end of contract vehicles? Automated and personalised management of ends of contract Several subsidiaries have implemented speciﬁc tools to manage with the necessary speed all the contracts arriving at their end, and to offer customers solutions that meet their needs. Arval France, for example, has introduced automated and personalised management of ends of contract. In practice, the customer whose contract is about to run out receives an email suggesting, depending on each speciﬁc situation, a renewal, an extension or an adjustment of service. The sales representative in charge of the contract is also alerted, and follows up with a telephone call a few days later. The same desire to share information and simplify the customer relationship is apparent in the Netherlands where, three months before a contract expires, the customer receives a “vehicle return kit” indicating the steps to follow. If it was agreed to offer the driver the chance to purchase the car, the price is quoted in the document! Standardisation and transparency in the resale of second-hand vehicles At the time of return, each vehicle has a residual value which is attributed to Arval. Resale on the second-hand vehicle market allows us to reach, or not, the residual value. To improve its products’ distribution and reach a large professional audience throughout Europe, Arval created the “MotorTrade” internet platform in 2009. This tool is based on a commitment to standardisation and transparency. It offers the possibility of consulting lists of vehicles and allows customers to determine their mode of purchase, either immediate at the listed price, or by participating in public auctions. Before being offered for sale, all vehicles are inspected by an independent company whose report is published in the description on the website. “MotorTrade” gives access to vehicles following their full-service leasing in various countries: Spain, France and Italy since 2009, Germany, Belgium and Poland in the course of 2010. This rollout will continue on a larger scale to cover all Arval subsidiaries. QUOTE: “Thanks to the reorganisation of our “Account Teams”, each team being responsible for a sales relationship with a client portfolio, similar in OFFER Arval Trading: the tailored solution for importers As part of its efforts to maximise the value of second-hand vehicles, Arval is also seeking to develop and professionalise cross-border sales. The Arval Trading entity has the logistical, administrative and ﬁscal expertise needed to ensure easy and secure transactions, within the European Union and beyond its borders. Certiﬁed as an exporter by the French customs authorities, the company is able to take on the necessary export paperwork for its customers, as well as to certify without delay the European origin of vehicles sold. This certiﬁcate allows the buyer to beneﬁt from reduced customs duties (as long as his country of residence has signed agreements with the European Union). And for individuals? A number of Arval subsidiaries do sell second-hand vehicles to individual buyers. Today, Autovalley has ﬁve sales locations in France, and other channels are active in Germany, Italy, Portugal, the Czech Republic and Slovakia. “ At Arval Italy, the Insurance activities are an integral part of all the operational functions and are subject to the same organisational rules. This methodology enables us to provide our customers “ with the best possible service, living up to our promise of “one call, one voice, one solution”; it also helps to reduce the cost of repairs. Cristiano Paolini, Operations and Remarketing Director, Arval Italy n ﬂeet size, we made communication with customers and within the team much more efﬁcient.” Arval Poland - Łukasz Niemczuk - Head of Back Ofﬁce 22-23 arval yearbook_09_10 _international business HOW DOES ARVAL MEET THE NEEDS OF ITS INTERNATIONAL CUSTOMERS? Present in 39 countries and across all ﬁve continents, Arval conducts business in two different ways: through subsidiaries in 22 countries, and in the other regions, through a network of high-quality partnerships, allowing us to meet the needs of global business. In the countries of Western Europe, Arval’s historic growth region, subsidiaries rival one another in commitment and creativity to design services in support of sustainable mobility, that is, which contribute to streamlined costs, environmental protection and driver safety. This trend is also growing in countries entered more recently, including Brazil, India and Turkey, where Arval registers the strongest growth rates for its leased ﬂeet. _contents 26-27 WHAT ARE THE SOLUTIONS FOR MANAGING SEVERAL FLEETS HARMONIOUSLY? HOW ARE MARKETS EVOLVING IN THE ARVAL COUNTRIES? 28-29 ARVAL TURNS 20: WHAT ASSESSMENT CAN BE MADE ABOUT THIS BUSINESS PERIOD? 24-25 arval yearbook_09_10 What are the solutions for managing several fleets harmoniously? How are markets evolving in the Arval countries? International Business Ofﬁce: for global ﬂeet management Globalisation of the economy means that Arval’s customers are increasingly expressing their needs in global terms, both with regard to cost management and optimisation as well as initiatives contributing to social and environmental responsibility. Created in 1998, the International Business Ofﬁce (IBO) has over ten years’ experience in support and management of international ﬂeets. Comprising experts of various nationalities based in different European countries in order to be close to their customers, the IBO team works to ensure that multinationals have access to advice, approaches to ﬂeet management and coordinated, harmonised methods, wherever they do business. Contracts for full-service leasing concluded in 2009 in the context of our international agreements thus represented 23% of vehicles brought to the road. At the end of the year, the total managed ﬂeet amounted to 160,000 vehicles. PHH Arval Global Alliance: the art and science of ﬂeet management For the past ﬁfteen years, Arval and PHH have collaborated in a strategic partnership that aims to meet all needs relating to management of international vehicle ﬂeets. The Alliance between these two ﬂeet management leaders also includes Facileasing in Mexico, Avis Fleet Services in South Africa, and Sumitomo Mitsui Auto Service in Japan and Thailand, for a total of 1.8 million vehicles in 39 countries managed by the PHH Arval Global Alliance. Services offered include maintenance, fuel management, and the development of coordinated cost reduction and environmental protection programmes. The two companies recently announced the extension of their partnership to 2015. INTERNATIONAL BUSINESS Arval Brazil solutions. The Ecopolis Mobility Point programme to the problems encountered by customers, has added new “green garages” to its listing, and the possibility to roll out the appropriate In order to improve the quality of service including more than 600 structures, selected solutions without delay. following an accident or for vehicle maintenance, for their service quality and environmental Arval’s Brazilian subsidiary has created a system responsibility actions. Arval Czech Republic of appointment conﬁrmation via text message. In addition, Arval Italy has created the Ecopolis In addition, once the operation has taken place, Arval reinforced its number-two position in the Award presented each year to the most drivers are invited to participate in a satisfaction Czech Republic in 2009, with a market share of ecological car in company ﬂeets. survey over the phone or through email. This almost 18%. Three contracts alone, signed with innovative method allows Arval to select the large groups, brought 1,100 vehicles to the road. Arval Netherlands best service garages for its customers. In terms of services, the Czech subsidiary has At the start of 2010, Arval Netherlands launched launched speciﬁc training for drivers to improve Arval France an “eco” version of its electronic calendar of their knowledge of Arval’s offers and mode of vehicle releases to come. The new version lists operation. Arval France has launched “Arval Service Clients” the market rollout dates for cars with low CO2 to respond rapidly to its customers’ demands. emissions. Using its drop-down menu, the Arval United Kingdom There is now a dedicated team to support user can carry out targeted searches based on companies in the daily monitoring of their Leader in the fuel management market, the vehicles’ tax status. contracts: call processing, immediate response fuel card offered by Arval United Kingdom At the same time, the Dutch subsidiary has or connecting up with a sales engineer or, where received the Van Fleet World award for best ﬂeet lent its support to the national De Nieuwe necessary, the back ofﬁce, etc. Ensuring increased service. This comprehensive management system Band initiative, whose aim is to promote offers driver convenience through an extensive responsiveness, this organisation also allows quieter, more environmentally friendly trafﬁc network of garages, whilst also reducing VAT the sales ofﬁces to expand their participation by favouring tyres that are safe, silent, and fuel- administration. With over 35 years experience in consulting assignments. saving. Fully 70% of tyres installed on vehicles in this arena, Arval UK’s support services managed by Arval in 2009 were compliant with reduce and control the fuel budgets of over Arval Italy the requirements deﬁned by supporters of this 38,000 customers. Ecopolis, the programme designed by Arval Italy approach. Road Safety, a key concern in the UK, is another to assist companies in implementing sustainable area in which Arval UK excels. Their industry mobility, continued to expand over the past year. Arval Portugal leading Road Safety Forum shares best practice Ecopolis Fleet, offering dedicated to incorporating In January 2010, Arval Portugal introduced a new with corporates and an extensive driver seminar CSR issues into our customers’ car policies, has complaint management tool called Complaint programme has put safety at the heart of ﬂeet been enriched with the possibility to connect Tracker. This platform enables the local teams to culture. This unparalleled contribution from a to the world of sustainability by buying monitor the progress of a complaint from the Fleet Management company was rewarded when “ecodriving” courses. A website is now available moment it is received until the time when it is they won the prestigious Fleet News industry online to inform customers of proposed resolved. Advantages: better visibility with regard Safety Award. “ In Romania, we were the first to create and implement a Service Charter. This specifies all the guarantees offered to our customers to deliver fast and accurate services which are measurable “ through performance indicators. We are proud to say that Arval is currently the only player in Romania to provide this level of quality engagement on the market. Arnault Leglaye, Managing Director, Arval Roumania 26-27 arval yearbook_09_10 Arval turns 20: what assessment can be made about this business period? High-speed growth Arval was created in 1989 within the former Compagnie Bancaire, which belonged to the Paribas group. Initially positioned as a challenger on its historic local market in France, Arval has imposed itself over the years as a major international player for multi-brand full-service leasing. The company’s development took place with the support of its 100% parent company BNP Paribas, through sustained organic growth. Arval Belgium was created as early as Global ambitions 1991, soon followed by the Italian (1995), Spanish (1996), Well represented in Europe, where its subsidiaries regularly Luxembourg (1997), Portuguese (1998), Polish (1999) gain market share, Arval is currently strengthening its and other subsidiaries. At the same time, acquisitions presence in countries undergoing rapid development, such in Switzerland, Great Britain, Germany and the Benelux as Turkey, India and Brazil. This ambition, as well as the countries further fed this growth. From a French team stability of our business despite the current economic crisis, of six employees at the time it was founded, Arval has conﬁrm Arval’s ability to take on a role of international thus grown to more than 4,000 employees working in leader in our sector. 22 countries at end-2009. A major player today in the multi-brand full-service leasing market, with a full ﬂeet of more than 680,000 vehicles, Arval owes its success as much to the joint efforts of its employees and partners, as to the trust and loyalty of its customers. “ Many customers have expressed their satisfaction in increasing their capabilities to generate savings. The reason? So far Arval is the only company in Spain to offer customers a “TCO Approach” (Total Cost of Ownership), which makes it possible to incorporate all the costs related to fleet management, including non-contractual costs. “ Alfred Serra, Ofﬁce Manager - Large Corporate Sales, Arval Spain 20 YEARS / TELEX Telex Arval Czech Republic launches Arval Fleet Control, an innovative In a joint initiative, BNP Paribas and Arval employees in India ﬂeet management tool based on a GPS module and an online planted 2,200 trees at Usur Village. application. According to a survey by Telefectiv for Top 10 Magazine, Arval Arval Lease Pro: This is the name of the product designed by Poland ranks ﬁrst in both Car Fleet Management and Brand Arval’s German subsidiary to enable companies with ﬂeets from Awareness. 1 - 20 vehicles to proﬁt, in the same way as large corporates, from the advantages of professional full-service-leasing, Arval Russia has tested solutions with its employees for better allowing them to concentrate on their core business. safety habits at the wheel, in preparation for offering them to its customers. The ﬂeet managed by Arval Greece grew by 42% after only two years of operations; it now has more than 1,800 vehicles and Customer portfolio up by 40%, managed ﬂeet larger by 60%: Arval is ranked in the top 5 companies in terms of ﬂeet growth and registered the strongest growth in Romania for the year 2009. in the top 10 companies in terms of market share in the Greek market for full-service leasing. In Spain and the United Kingdom, Arval has been granted the operational leasing business for RCI, the Renault group’s ﬁnance Arval Portugal has launched stock2c.com, an online application subsidiary. allowing individuals to purchase Arval vehicles. For the fourth consecutive year, Arval Netherlands has In May 2010, Arval France set up the ﬁrst Green Mobility test been designated best full-service leasing company by the centre. Its purpose: an exhibition and test drives of electric Heliview Research institute; the subsidiary was also awarded and hybrid vehicles and the launch of Arval’s new sustainable ISO 14001 (environmental management) and IKM 300 (complaint mobility offering, “Electric Mobility by Arval”. processing) certiﬁcation. Thanks to Impacto Cero, all Spanish customers who wish to Arval United Kingdom demonstrated high quality products and improve their environmental policy can offset their ﬂeet’s services by winning four major awards: Best Leasing Initiative CO2 emissions partially or completely by investing in speciﬁc (Fleet News awards), Company Driver Safety award (Fleet Safety projects. Forum Awards for Excellence), Van Fleet Service Company of the Year (Fleet Van awards) and Fleet Management Service Award For its ﬁfth anniversary, Arval Slovakia conﬁrms its number-two (Van Fleet World Honours). ranking among full-service leasers. Not content with simply inviting its customers to the Roland- In 2010, Arval Poland will acquire most of the portfolio held until Garros tennis tournament, Arval Luxembourg also arranged for now by the Daimler subsidiary in charge of ﬂeet management. them to meet a world famous sports personality: Ilie Nastase. This takeover will allow the customers under contract to beneﬁt Over lunch, the former Romanian tennis player – the world’s No.1 from service continuity, as well as help to strengthen Arval’s in the 1970s – shared his experience of tennis and discussed position in the Polish market. the highlights of his career. Arval Hungary entered the public market by winning a contract By launching the “Arval Web TV” in June 2009, the German with the Central Agricultural Ofﬁce for 838 environmentally subsidiary found a novel, modern way of telling its customers, friendly vehicles. prospective customers and employees about the advantages of full-service leasing. Tel.: +33 (0)1 57 69 50 00 - www.arval.com 22, rue des Deux Gares - 92564 Rueil-Malmaison Cedex - France Published by the Group Communication Department. Copywriting and design: w w w. t e r re d e s i e n n e . c o m Photo credits: Gérard Uféras, Corbis, Getty Images, Shutterstock, Plain Pictures, Renault, Arval media library.
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