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De Lage Landen Grows Portfolio to $40.6 Billion in 2012

March 18, 2013, 07:23 AM
Filed Under: Corporate Earnings

DLL announced its annual results for 2012 demonstrating managed portfolio growth of 5% to $40.6 billion and net income of $1.9 billion.

According to the press release, DLL’s Vendor Finance division remains the largest area of the business. In 2012 Vendor Finance grew 7% due to a strong performance across all business channels, especially the Food & Agriculture market (+11%) and the sector for Construction, Transportation and Industrial equipment (+8%). As reported, overall growth is not limited to the emerging markets – DLL realized an increase of portfolio in the Americas and Europe as well.

Within DLL’s Financial & Mobility Solutions division, mainly focused on the European and Dutch market, the company witnessed a growth of 6% of its consumer finance solutions, including the online label Freo. In line with its ambitions, Athlon Car Lease increased its international business with 13% compared to last year.

DLL reported across channels, the company’s growth is mainly due to longer term leasing business. Non-interest products, like insurances, are also becoming more popular as value-added services to leasing contracts. According to DLL, this contributes to the company’s strategy to increase the value of the overall portfolio

The company also decreased its impairment charges for the 3rd year in a row as part of its strategy to keep its cost structure under control. This positively influenced DLL’s overall results in 2012, enabling net profit to reach EUR 365 million ($ 470 million), an increase of 20% vs. 2011.

“Our company’s performance is the result of strong relationships with our partners and the added value we bring through integrated solutions,” says CEO Ronald Slaats of De Lage Landen (DLL). “Our investments are paying off. Therefore we will continue to build a real networked organization that serves customers across the globe better and faster. Cost control, agility and industry knowledge are crucial to offer stability in the current dynamics.”

Looking ahead, DLL said it aims to stay on course of offering sustainable and innovative concepts to its partners in the form of total solutions. “In 2012 DLL was acknowledged for its focus on sustainable business models with the introduction of Life Cycle Asset Management, resulting in 3 important industry awards. Together with the launch of Athlon Mobility Consultancy, these initiatives show the company’s drive to offer new solutions that look further ahead into the future, matching the challenges our partners will face in their value chains,” said Slaats.

To further develop the offering of total solutions for its global partners, DLL will continue to strengthen the connection between its worldwide offices and employees. Building on a truly networked organization, the company will again embark with employees on the Clipper Round the World Yacht Race. “Last year, we successfully concluded our first entry in this global ocean challenge. Being the perfect metaphor for our aim to become a connected global organization, our Journey to become One. This year we will again start in the 13-14 edition of the Clipper Race. We will continue to connect employees in offices across the world to emphasize the global approach of our local operations,” Slaats concludes.
De Lage Landen, a fully owned subsidiary of Rabobank Group, specializes in asset-based financing programs for equipment manufacturers, dealers and distributors all over the world.

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