Allane SE

Quarterly Report • Nov 8, 2024

allane mobility group

Group Quarterly Statement 032024

1. Business report

1.1 General disclosures

Allane 5E, based in Germany, 82049 Pullach, Dr.-Carl-von-Linde-Straße 2, is a European Stock Corporation (Societas Europea). The company is registered in the Commercial Register at the Munich local court in section B under docket number HRB 227195 and acts as the parent company of the Allane Mobility Group. The Allane Mobility Group is a leading provider of integrated mobility solutions, characterized by its cross-brand services. The company organizes its operations into four business segments: Online Retail, Fleet Leasing, Captive Leasing and Fleet Management. Allane Mobility Group offers a wide range of innovative solutions aimed at simplifying mobility in all its facets.

Private and business customers have the opportunity to lease new vehicles affordably via Allane Mobility Group's online platforms or to select used vehicles from an extensive stock of. In addition, Allane offers corporate customers a particularly cost-efficient full-service leasing solution for vehicle fleets that includes the provision of vehicles as also comprehensive fleet management services.

1.2 Change in revenue recognition with regard to full services and vehicle brokerage

Since 31 December 2023, the full service components "fuel, "vehicle tax and radio license fees" and "replacement vehicles" in the Leasing business unit and components "fuel", "claims management", "maintenance and wear and tear", "tires", "vehicles tax and radio license fee", "replacement vehicles" and "logistics" in the Fleet Management business unit, which were previously recognized as principal (gross basis) in the income statement, have been recognized as agent (net basis). In addition, brokerage income in the Fleet Management segment, which was recognized as principal (gross basis) in the previous year, has been recognized as agent (net basis) since 31 December 2023.

The previous year's figures for operating revenue, brokerage income and expenses for vehicle fleets and leased assets have been adjusted in this quarterly statement from revenue recognition as principal (gross basis) to revenue recognition as agent (net basis).

The adjusted prior-year figures were marked separately in the quarterly statement as of 30 September 2024 by reference $\left(^{\circ}\right)$.

For further information, please refer to item 3.1 income statement in the notes to the consolidated financial statements of the 2023 annual report published on 30 April 2024.

1.3 Group business performance

As of 30 September 2024 the Group contract portfolio inside and outside Germany (excluding franchise and cooperation partners) totalled 138,500 contracts, $9.2 \%$ above the figure as of 31 December 2023 (125,800 contracts).

In the period from January to September 2024, consolidated revenue increased by $22.0 \%$ to EUR 552.3 million (9M 2023: EUR 452.7 million) compared to the same period of the previous year. Operating revenue, which does not include the proceeds from vehicle sales, increased by $38.0 \%$ to EUR 332.6 million (9M 2023: EUR 241.1 million). The positive development is mainly due to the growing contract portfolio in the Captive Leasing segment and the resulting increase in leasing income. Sales revenue from the sale of lease returns and brokering/marketing of customer vehicles increased by $3.9 \%$ to EUR 219.8 million (9M 2023: EUR 211.6 million*). This development is mainly the result of an increase in the number of vehicles sold compared to the same period last year and the additional marketing of third-party vehicles. The level of unit prices, however, remained constant compared to the previous year.

Earnings before interest, taxes, depreciation and amortization (EBITDA) increased by $53.8 \%$ to EUR 235.2 million (9M 2023: EUR 152.9 million) in the first nine months of 2024. Earnings before taxes (EBT), however, decreased by more than $100 \%$ to EUR -31.8 million (9M 2023: EUR 10.6 million). The operating retun on revenue (EBT/operating revenue) consequently came to $-9.6 \%$ (9M 2023: $3.9 \%$ ).

The decrease in earnings in the first nine months of 2024 is mainly due to an increase in impairment losses as a result of the negative residual values developments. This increase is due to the growing lease portfolio and the development of residual values for used vehicles. Consequently, the risk provision, which results from the difference between the residual and expected market value, was increased, particularly for electric vehicles.

Key figures Allane Mobility Group

in EUR million	$\begin{gathered} 9 M \ 2024 \end{gathered}$	$\begin{gathered} 9 M \ 2023 \end{gathered}$	Change in \%
Consolidated revenue	552.3	$452.7^{*}$	22.0
Thereof Operating revenue	332.6	$241.1^{*}$	38.0
Thereof Sales revenue	219.8	$211.6^{*}$	3.9
Earnings before interest, taxes, depreciation and amortization (EBITDA)	235.2	152.9	53.8
Earnings before taxes (EBT)	$-31.8$	10.6	$<-100.0$
Operating return on revenue (\%)	$-9.6$	$4.4^{*}$	$-14.0$ ppt.

1.4 Leasing business unit

In the Leasing business unit, which consists of the operating business segments Online Retail, Fleet Leasing and Captive Leasing, the contract portfolio totalled 91,300 contracts as of the end of the third quarter of 2024, an increase of $18.1 \%$ compared to the figure recorded at the end of 2023 (31 December 2023: 77,300 contracts).

The contract portfolio in the Captive Leasing business segment increased by over 100\% to 34,700 contracts (31 December 2023: 16,300 contracts). In the Online Retail business segment, however, the number of contracts fell by $10.1 \%$ to 24,600 contracts ( 31 December 2023: 27,300 contracts) and in Fleet Leasing by $4.7 \%$ to 32,100 contracts (31 December 2023: 33,700 contracts).

In the Leasing business unit, EBT for the first nine months of 2024 amounted to EUR $\sim 35.3$ million, below the previous year's level. Rising depreciation of leased assets due to changes in residual values, particularly of electric vehicles, and higher refinancing costs due to the growing portfolio of contracts had a negative impact on EBT.

Key figures Leasing business unit

in EUR million	9M	9M	Change
	2024	2023	in\%
Total revenue	535.3	$435.5^{*}$	22.9
Thereof Leasing revenue (finance rate)	228.4	$152.5^{*}$	49.8
Thereof Other revenue from leasing business	87.7	$74.0^{*}$	18.5
Thereof Sales revenue	219.1	209.0	4.8
Earnings before interest, taxes, depreciation and amortization (EBITDA)	231.6	152.9	51.5
Earnings before taxes (EBT)	$-39.3$	10.7	$x \sim 100 \%$
Operating return on revenue (\%)	$-11.2$	$4.7^{*}$	$-15.9$ ppt.

1.5 Fleet Management business unit

In the Fleet Management business unit, which is assigned to the operating segment of the same name, the number of contracts at the end fo the third quarter of 2024 was 47,200, 2.7\% below the previous year's figure (31 December 2023: 48,500 contracts). This slight decline is mainly due to the expiration of contracts with existing customers, while at the same time there was a decline in new contracts.

In the Fleet Management business unit, EBT for the first nine months of 2024 was EUR 3.5 million, slightly above the previous year's level. This is due to constant fleet and leasing expenses, while fleet management revenues have increased.

Key figures Fleet Management business unit

in EUR million	9M	9M	Change
	2024	2023	in\%
Total revenue	17.2	$17.2^{*}$	$-0.70$
Thereof Fleet management revenue	16.4	$14.6^{*}$	12.57
Thereof Sales revenue	0.7	$2.6^{*}$	$-74.41$
Earnings before interest, taxes, depreciation and amortization (EBITDA)	3.5	0.0	$>+100$
Earnings before taxes (EBT)	3.5	$-0.1$	$>+100$
Operating return on revenue (\%)	21.3	$-0.8^{*}$	22.1 ppt.

1.6 Financial position

Equity development

As of 30 September 2024 Allane Mobility Group's equity totalled EUR 215.8 million, representing a decrease of EUR 22.4 million or $9.4 \%$ compared to the previous year (31 December 2023: EUR 238.2 million). The equity ratio decreased by 4.9 percentage points to $9.3 \%$ (31 December 2023: $14.2 \%$ ). This development is due in particular to the increase in the balance sheet total resulting from the increase in leased assets.

Liabilities development

As of 30 September 2024, the Allane Mobility Group reported non-current liabilities and provisions of EUR 1,501.9 million (31 December 2023: EUR 993.5 million; 51.2\%). In this context, non-current financial liabilites increased by EUR 512.4 million or $55.7 \%$ compared to the previous year to EUR 1,433.2 million as at 30 September 2024 (31 December 2023: EUR 920.7 million), which is mainly due to the increase in the volume of leasing contracts and the resulting capital requirements. The increase in long-term loans taken out with Santander Consumer Bank AG for an expansion of the assetbacked securities program ("ABS program") also contributed to the increase in long-term financial liabilities.

Current liabilites and provisions totalled EUR 595.5 million as of 30 September 2024 (31 December 2023: EUR 441.6 million). The increase of EUR 153.9 million or $34.8 \%$ resulted in particular from a rise in current financial liabilities of EUR 111.3 million or $43.4 \%$ to EUR 367.5 million ( 31 December 2023: EUR 256.2 million), which in turn was mainly due to the taking out of further short-term loans from Santander Consumer Bank AG and the associated interest expense. In addition, liabilities to affiliated companies increased by EUR 33.1 million or over 100.0\% to EUR 33.2 million (31 December 2023: EUR 0.1 million). This was mainly due to the takeover of the marketing of lease returns from Hyundai Capital Bank Europe. Accounts payable decreased by EUR 8.5 million or $7.3 \%$ to EUR 107.8 million (31 December 2023: EUR 116.3 million). Other liabilities increased by EUR 10.5 million or $26.1 \%$ to EUR 50.9 million (31 December 2023: EUR 40.4 million).

1.7 Investments

In the first nine months of 2024, the Allane Mobility Group added vehicles with a total value of EUR 972.2 million (9M 2023: EUR 532.6 million) to the leasing fleet. This increase of $82.6 \%$ compared to the previous year is mainly due to a strong increase in order volume compared to the same period of the previous year, due to new collaborations in the Captive Leasing business segment.

2. Events subsequent to the reporting date

On 31 October 2024, the Management Board of Allane SE once again adjusted the forecast for the 2024 financial year, which was amended on 23 August 2024, with regard to Group operating revenue and Group EBT (see item 4. Outlook). Decisive for this forecast adjustment with regard to consolidated operating revenue was the positive business performance in the first nine months of 2024. Consolidated operating revenue had already exceeded the lower target of the forecast corridor. Preliminary Group EBT for the first nine months continued to be negatively impacted by the accumulated impairment losses on leased assets due to residual and expected market value differences. Allane SE therefore expects a further decline in EBT by the end of the year.

Furthermore, there were no significant events, that would affect the net assets, financial position, and results of operations of the Group and the Company after the end of the third financial quarter of 2024.

3. Specific events

With regard to the impact of high interest rates and residual value risk on the business development of Allane Mobility Group, please refer to the risk report in the management report of the Annual Report 2023, published on 30 April 2024. However, it should be noted that the full and lasting economic impact on future development can still hardly be reliably estimated at present and that the estimates and discretionary decisions are therefore still subject to increased uncertainty.

4. Outlook

The Management Board confirms the forecast adjusted on 31 October 2024 and accordingly continues to expect a Group contract portfolio in a range of 130,000 to 150,000 contracts (2023: 125,800 contracts). As a result of the positive business development, consolidated operating revenue is expected to be between EUR 425 million and EUR 475 million (2023: EUR 342.7 million). Due to the market development of used car prices, the Management Board assumes that the Allane Mobility Group will generate consolidated EBT of between EUR -35 million and EUR -45 million. The reasons for the reduction in the EBT forecast are mainly the expected market-related decline in used car prices, particularly for electric vehicles, and the resulting need for extraordinary depreciation.

5. Financial figures for Allane Mobility Group as of 30 September 2024

5.1 Group income statement and statement of comprehensive income

Consolidated Income Statement

in EUR thou.	$\begin{gathered} 9 M \ 2024 \end{gathered}$	$\begin{gathered} 9 M \ 2023 \end{gathered}$	$\begin{gathered} \text { Q3 } \ 2024 \end{gathered}$	$\begin{gathered} \text { Q3 } \ 2023 \end{gathered}$
Revenue	552,330	452,744*	192,602	$148,909^{*}$
Other operating income	6,928	6,631	2,829	2,100
Fleet expenses and cost of lease assets	261,413	239,394*	87,413	74,218*
Personnel expenses	42,730	41,693	12,992	13,541
Net losses arising from the derecognition of financial assets	1,736	1,241	951	245
Net impairment losses ( - /gain (+) from financial assets	$-521$	$-1,188$	$-45$	$-572$
Other operating expenses	18,738	22,961	6,828	8,082
Earnings before interest, taxes, depreciation and amortization (EBITDA)	235,162	152,898	87,510	54,351
Depreciation and amortization	235,362	133,000	81,883	46,079
Earnings before interest and taxes (EBIT)	$-207$	19,897	5,628	8,273
Net finance costs	$-31,637$	$-9,336$	$-12,913$	$-4,591$
Earnings before taxes (EBT)	$-31,843$	10,562	$-7,285$	3,682
Income tax expense	$-7,819$	3,563	$-1,707$	1,060
Consolidated profit	$-24,024$	6,999	$-5,578$	2,621
Of which attributable to shareholders of Allane SE	$-24,024$	6,999	$-5,578$	2,621
Earnings per share - undiluted and diluted (in EUR)	$-1.12$	0.34	$-0.23$	0.13

Consolidated statement of comprehensive income

in EUR thou.	9 M	9 M
	2024	2023
Consolidated profit		$-24,024$
Other comprehensive income (not recognised in the income statement)	3,460	$-3,264$
Thereof components that could be reclassified to income statement in the future
Currency translation gains/losses	$-307$	246
Change of derivative financial instruments in hedge relationship	4,830	$-4,500$
Related deferred taxes	$-1,063$	990
Total comprehensive income	$-20,564$	3,735
Of which attributable to minority interests	3,767	$-3,510$
Of which attributable to shareholders of Allane SE	$-24,332$	7,245

5.2 Group balance sheet

Assets
in EUR thou.
Non-current assets
Goodwill
Intangible assets
Property and equipment
Lease assets
Financial assets
Other receivables and assets
Deferred tax assets
Total non-current assets
Current assets
Inventories
Trade receivables
Receivables from related parties
Other receivables and assets
Income tax receivables
Bank balances
Total current assets
Total assets
Equity and liabilities
in EUR thou.
Equity
Subscribed capital
Capital reserves
Other reserves
Minority interests
Total equity
Non-current liabilities and provisions
Provisions for pensions
Other provisions
Financial liabilities
Other liabilities
Deferred tax liabilities
Total non-current liabilities and provisions
Current liabilities and provisions
Other provisions
Income tax liabilities
Financial liabilities
Trade payables
Liabilities to affiliated companies
Contract Liabilities
Other liabilities
Total current liabilities and provisions
Total equity and liabilities
30.09.2024
4.134
21.832
34.319
1.982,573
27
12.985
932
2,056,802
34.782
116.815
9.423
61.370
144
33.742
256,276
2.313,078
31.12.2023
20.612
20.612
135,045
54.058
6.054
215,769
238,189
139
226
1,433,154
44.812
23.523
1,501,854
142
226
1,433,154
40,063
23.523
32,397
1,501,854
993,536
5.271
3.869
4.055
367,547
256,219
107,805
116,301
33.153
56
26.920
20.784
50.890
40.356
595,455
441,584
2.313,078
1.673,309

5.3 Group cash flow statement

Consolidated cash flow statement
in EUR thou.
2024
2023

Operating activities

Consolidated profit
Income taxes recognised in income statement
Income taxes received
Income taxes paid
Financial result recognised in income statement ${ }^{1}$
Interest received
Interest paid
Depreciation and amortization
Income from disposal of fixed assets
Other (non-)cash expenses and income
Gross Cash flow
Proceeds from disposal of assets
thereof leasing assets
thereof fixed assets
Payments for investments in lease assets
Change in inventories
Change in trade receivables
Change in trade payables
Change in other net assets
Net cash flows used in operating activities

Investing activities

Proceeds from disposal of intangible assets and equipment
Payments for investments in intangible assets and equipment
Net cash flows used in investing activities

Financing activities

Increase in subscribed capital
Payments received into capital reserves
Payments made due to the issue of new shares, set off from capital reserves ${ }^{3}$
Dividends paid
Compensation according to profit and loss transfer agreement
Proceeds from bank loans (incl. ABS-transaction) ${ }^{2}$
Payments made for redemptions of bonds, borrower's note loans and bank loans (incl. ABS-transaction) ${ }^{3}$
Payments made for redemption of/payments received from taken-out short-term financial liabilities ${ }^{45}$
Net cash flows from financing activities
Net change in cash and cash equivalents
Effect of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at 1 January
Cash and cash equivalents at 30 September
Excluding income from investments
${ }^{2}$ Proceeds from bank loans (incl. ABS transaction) include proceeds from financing of affiliated companies in the amount of EUR 240,000 thousand (9M 2023: EUR 250,000 thousand).
${ }^{3}$ Payments for redemption of bond, promissory note loan and bank loan (incl. ABS transaction) include payments for redemption of financing of affiliated companies in the amount of EUR 40,000 thousand (9M 2023: EUR 70,000 thousand).
${ }^{4}$ This includes cash inflows from the raising of financing from affiliated companies in the amount of EUR 0 thousand (9M 2023: EUR 180,000 thousand) and cash outflows from the repayment of financing from affiliated companies in the amount of EUR 0 thousand (9M 2023: EUR 70,000 thousand).
${ }^{5}$ Short-term borrowings with a maturity period of up to three months and quick turnover.

5.4 Additional financial information

Revenue

Revenue is broken down as follows:

Revenue
in EUR thou.	$\begin{gathered} \text { 9M } \ 2024 \end{gathered}$	$\begin{gathered} 9 M \ 2023 \end{gathered}$	Change in \%	$\begin{gathered} \text { Q3 } \ 2024 \end{gathered}$	$\begin{gathered} \text { Q3 } \ 2023 \end{gathered}$	Change in \%
Leasing business unit
Leasing revenue (finance rate)	228,437	152,524	49.8	84,858	54,921	54.5
Other revenue from leasing business	87,725	74,045*	18.5	27,895	24,709*	12.9
Sales revenue	219,090	208,975	4.8	74,522	61,828	20.5
Total	535,251	435,544*	22.9	187,275	141,459*	32.4
Fleet Management business unit
Fleet management revenue	16,407	14,576*	12.6	5,269	4,903*	7.5
Sales revenue	671	2,624*	$-74.4$	257	2,548*	$-89.9$
Total	17,079	17,200*	$-0.7$	5,526	7,450*	$-25.8$
Group total	552,330	452,744*	22.0	192,802	148,909*	29.5

Fleet expenses and cost of lease assets
Fleet expenses and cost of lease assets are broken down as follows:

Fleet expenses and cost of lease assets

in EUR thou.	9M	9M	Change
	2024	2023	in \%
Selling expenses ${ }^{1}$	187,620	181,142*	3.6
Repair, maintenance and reconditioning	40,665	$36,831^{*}$	10.4
Vehicle licenses	14,323	7,451	92.2
Insurance	4,842	4,324	12.0
Vehicle return expenses	2,897	2,312	25.3
Transportation	2,526	2,206*	14.5
Fuel	341	$110^{*}$	$>100$
External rent expenses	224	$399^{*}$	$-43.9$
Taxes and dues	55	$-150^{*}$	$-136.8$
Radio license fees	16	$7^{*}$	$>100$
Other expenses	7,904	4,762*	66.0
Group total	261,413	239,394*	9.2

• Includes impairment losses on leased assets held for sale in amount of EUR 431 thousand (9M 2023: EUR 300 thousand)

Depreciation and amortization
Depreciation and amortization are composed as follows:

Depreciation and amortization

in EUR thou.	9M	9M	Change
	2024	2023	in\%
Lease assets ${ }^{1}$	225,923	124,296	81.8
Property and equipment ${ }^{2}$	4,112	4,460	$-7.8$
Intangible assets ${ }^{1}$	5,334	4,244	25.7
Group total	235,369	133,000	77.0

[^0]
[^0]: 1 Depreciation includes impairments in the amount of EUR 46,575 thousand (9M 2023: EUR 289 thousand)
2 Depreciation includes impairments in the amount of EUR 0 thousand (9M 2023: EUR 0 thousand)
3 Depreciation includes impairments in the amount of EUR 0 thousand (9M 2023: EUR 0 thousand)

Other operating expenses
Other operating expenses are broken down as follows:

Other operating expenses
in EUR thou.	9 M	9 M	Change
	2024	2023	in\%
IT expenses	7.039	8.307	-15.3
Audit, legal, advisory costs, and investor relations expenses	2.942	3.580	-17.8
Other personnel services	2.007	2.253	-10.9
Expenses for buildings	1.254	1.181	6.2
Other selling and marketing expenses	1.112	3.802	-70.7
Expenses for foreign currency translation	926	812	14.1
Commissions	-154	-0	+100
Miscellaneous expenses	3.460	3.028	14.3
Group total	$\mathbf{1 8 , 7 3 8}$	$\mathbf{2 2 , 9 6 1}$	$\mathbf{- 1 8 . 4}$

Net finance costs
The net finance costs are as follows:

Net finance costs

in EUR thou.	9 M	9 M	Change
	2024	2023	in\%
Other interest and similar income	437	237	84.2
Other interest and similar income from related parties	64	21	$>100$
Interest and similar expenses	-13.633	-879	$>100$
Interest and similar expenses for related parties	-18.503	-8.732	$>100$
Other net financial result	-1	18	-105.6
Group total	$\mathbf{- 3 1 , 6 3 7}$	$\mathbf{- 9 . 3 3 6}$	$\mathbf{> 1 0 0}$

[^0]
[^0]: 1 Interest and similar expenses to related parties mainly include interest provisions for future interest payments from the loan obligations to Santander Consumer Bank AG.

Group segment reporting
With the publication of the consolidated interim report as of 30 June 2024, the Management of the Allane Mobility Group has subjected the internal control and monitoring of the company to a comprehensive reassessment and adjusted the segment reporting accordingly. Since then, the Allane Mobility Group has been reporting on the development of the Leasing business unit at the level of the operating segments Online Retail, Fleet Leasing and Captive Leasing and on the development of the Fleet Management business unit in the Fleet Management business segment.

The segment information for the first nine months of 2024 (compared to the previous year period) is as follows:
Consolidated Income Statement
By Operating Segments ${ }^{1}$

[^0]
[^0]: ${ }^{1}$ Adjusted, see Chapter 1 "Business report", Subchapter 12 "Change in revenue recognition with regard to full services and vehicle brokerage" in this Group Quarterly Statement as of 30 September 2024.
${ }^{2}$ In order to ensure comparability, the previous year's figures were reconciled to the new operating segments.
${ }^{2}$ Corresponds to earnings before interest, taxes, depreciation and amortization (EBITDA)
${ }^{3}$ Corresponds to earnings before interest and taxes (EBIT)
${ }^{4}$ Corresponds to earnings before taxes (EBT)

Due to rounding it is possible that individual figures in this Group Quarterly Statement do not add up exactly to the totals shown and that the nine-month figures do not exactly result from adding up the individual quarterly figures. It is also possible that, the percentage figures presented do not exactly reflect the absolute figures they relate to.

Pullach, 8 November 2024

Allane SE

Dr.-Carl-von-Linde-Straße 2 82049 Pullach Germany

Contact Investor Relations Phone +49 89 / 708081610