Leasing
Strategy and targets
Core activities De Lage Landen
Review of activities
Market and clients
44 Rabobank Group Annual Report 2004
Core activities
De Lage Landen showed another handsome increase in both its result
and its lease portfolio in 2004. In Scandinavia, the company strengthened
its position with the acquisition of Telia Finans. The real estate financing
activities were acquired by FGH Bank. In 2004, De Lage Landen decided
to implement a global standardisation of its business processes in order
to be able to offer uniform services to its international clients globally
and to meet stricter international regulations.
After many years of growth, the leasing industry was confronted with
negative growth figures worldwide in 2004. Despite this, De Lage
Landen succeeded in sustaining its strong growth (10-15%) of recent
years. The lease portfolio grew by EUR 0.7 billion, to EUR 13.0 (12.3)
billion. This growth was depressed by the weaker dollar. Adjusted for
the dollar effect, the growth would have been 15%. Of the total lease
portfolio, Europe accounts for 54%, North and South America for 45%
and Asia, Australia and New Zealand for 1
As a result of its expansion in recent years, De Lage Landen is now one
of Europe's largest international lease businesses. In fact, it is the largest
foreign lease company in the United States and, based on sales volumes,
De Lage Landen is among the top ten of all lease companies.
Lease portfolio by region
Europe 54%
North and South America 45%
Asia, Australia and
New Zealand 1%
Acquisition of Telia Finans AB
Early in 2004, De Lage Landen acquired Telia Finans from the Swedish
company Telia Sonera. This acquisition has given the business a firm
foothold in Scandinavia. Telia Finans AB is the Scandinavian market leader
in IT and office equipment leasing, with a lease portfolio amounting to
almost EUR 500 million. Telia Finans now operates under the name De
Lage Landen Finans. De Lage Landen's real estate financing activities
(portfolio of EUR 1.1 billion) were sold to FGFH Bank last year.
Growth in all sectors
Internationally, De Lage Landen focuses on the food agriculture,
healthcare, office equipment, IT, telecommunications, materials handling
construction equipment and bank outsourcing sectors. In the year
under review, the level of activity was increased in all sectors, particu
larly in food agri, office equipment and healthcare. In the Netherlands,
the company offers a wide range of lease and trade financing products,
including equipment lease, car and commercial vehicle leases, ICT lease,
consumer finance and trade financing.
Lease portfolio by sector
Office equipment
22%
Food Agri
21%
Bank outsourcing
13%
Materials handling construction
12%
Healthcare
10%
'T
10%
Translease
4%
Other
8%
Business process standardisation
In 2004, De Lage Landen decided to standardise its business processes
worldwide. Clients are placing increasingly higher demands on service
and they expect a uniform service throughout the world. In addition,
international regulations have become considerably more stringent in
recent years. This, too, requires adjustment of business processes.
The implementation is expected to take several years.
Global offer of financing solutions aimed at enhancing
Annual growth in
vendor sales (manufacturer or distributor) via structured
operating profit
international collaboration and/or on the basis of
before taxation of
partnerships.
10 to 15%.
