Contents Foreword Management report Corporate governance
Consolidated Financial Statements
Company Financial Statements
Pillar 3
The concept of a circular economy further relies on usage
rather than ownership of assets. Usage-based models enable
manufacturers to maintain control of equipment throughout its
technical life and can ensure the equipment does not wind up
in a landfill.
DLL supports its partners in their transition to a circular
economy by providing financial solutions through its Life Cycle
Asset Management (LCAM) programme. In practice, this means
helping partners by financing used and refurbished equipment,
and providing new service-based financial solutions such
as leasing and pay-per-use to unlock circular models. DLL is
a leader in this area, and it sees it as its responsibility to share its
knowledge and experience in any way it can, including white
papers, blogs, presentations, press releases and free webinars.
DLL's Used Equipment Finance capabilities include lease
solutions to the end user as well as inventory finance to dealers
and resellers. In 2016 DLL focused on geographical expansion
of its Used Equipment Finance (UEF) strategy. For example,
DLL booked its first deals in Poland and Brazil. In Germany,
UEF business is growing continuously and DLL has closed
dealer agreements with various new partners specialising in
used equipment. DLL's new business in used equipment to
dealers in Europe increased from approximately EUR 2 million
in 2014 to EUR 39 million in 2016 in those countries where
inventory finance for used assets is eligible. Relative to total new
business globally, business volume in used equipment to end
users stabilised.
Another example of an innovative project focused on retaining
the value of a product already in circulation is remounting
and refurbishing ambulances, begun in the UK. Many of the
funded ambulances return to DLL after a period of five to seven
years and are typically sold at auction. By mounting the most
valuable part of an ambulance (the box) on a new chassis,
investment costs for the end customer can be reduced by more
than 20%, and the life of the vehicle is extended by a further
five to seven years. In this example, DLL is playing an active role
in the process of extending vehicle life by financing the full cost
of the remount process rather than just the end product.
Partners' Sustainability Engagement Tool
DLL has developed and implemented a Partners' Sustainability
Engagement Tool. This tool assesses vendor performance in
terms of sustainability and provides leading-edge sustainability
expertise to help raise their sustainability ambitions.
External sustainability recognition
DLL won the 2016 Alliance Trust Award for Circular Economy
Investor, part of the Circulars award programme organised by
the Young Global Leaders of the World Economic Forum in
cooperation with Accenture.
DLL was honoured for its sustainability efforts, receiving the
sustainability award from Leasing Life, one of the top leasing
industry journals in Europe. DLL continues to set the pace
for the industry within this field of sustainability. Through its
Lifecycle Asset Management programme DLL has the finance
structure to promote recycling. Their commitment to this
theory all the way through their vendors, their dealers, their
sales teams and being able to persuade customers to buy
repurposed and recycled equipment is impressive. This part
of their business has scaled rapidly since it started in 2013,
which shows its tremendous potential. Most important,
today's measurable results are a source of inspiration and
motivation for the entire industry.
Mobility solutions
In 2016, DLL's mobility solutions entity Athlon continued to
develop its suite of mobility products and services designed
to help customers towards more sustainable and cost-efficient
mobility policies. Examples include launching scooter leasing
in cooperation with partners in Italy and moving closer to
developing a 'Mobility as a Service' solution in Belgium.
Impact Loans
To facilitate a transition to a more sustainable and circular
economy, Rabobank wants to increase the delivery of products
to frontrunners and leaders. An example is the Impact Loan
was developed and funded in collaboration with the European
Investment Bank to encourage SMEs in the Netherlands to
make sustainable investments. It provides a discount of max
1.1%, depending on the term of the loan. After a successful first
launch in 2015, we issued a second tranche of EUR 100 million
in 2016. Clients who are actively involved in sustainability
and which invested in the application of eligible selected
independent meaningful sustainability certification schemes
can receive an Impact Loan for new investments.
Rabobank is the first and only provider of this loan. In total,
we financed more than EUR 70 million via impact loans in
2016. Steven van den Brink, a Dutch logistics provider, is one
of the clients we supported via the Impact Loan. The 'Rabo
Impactlening' contributes to our services with a positive
social impact. The total outstanding volume of impact loans is
EUR 80.6 million at the end of 2016.
94 Rabobank Annual Report 2016
