NEW COMER USER GUIDE

OVERALL PRESENTATION

MARINE THIBAUDIER
Rueil-Malmaison – Juin/Août 2019
CONTENTS

ARVAL COUNTRIES CONTACT LIST

Our History
Key Dates
CONTROLLING PROCESS
Net Promoter Score (NPS)
Key Financial Figures Lifecycle of a vehicle
Organisational Chart Reporting Calendar
BNP Paribas Group Activities 2019 Reporting Calendar Instructions

GMC ORGANISATION IRIS

Team (as of 2019) Definition and Cubes
Tasks Allocation (as of 2019) Smartview/Essbase
Actions Plan 2019 Business Units Organisation

Newcomer User Guide – Overall Presentation 2

Arval (1/6) – Our History
About us :

Founded in 1989 and fully owned by BNP Paribas, Arval specialises in full service vehicle
leasing. Arval offers its customers – large international corporates, SMEs and professionals –
tailored solutions that optimise their employees’ mobility and outsource the risks associated
with fleet management. Today, our services are delivered in 29 countries by over 7,000
employees. Arval’s total leased fleet adds up to 1,193,910 vehicles throughout the world
(December 2018). Within BNP Paribas, Arval belongs to the Retail Banking core activity.

Our mission :
Our mission is to deliver expert advice and quality service to clients of any size to optimize their
employees' mobility, efficiency and satisfaction (see Net Promoter Score next pages). Our
slogan "Arval. We care about cars. We care about you.“ reflects Arval customer-centric
approach and dedication to tailored advice and quality of service.
Full Corporate Presentation Link : http://mediab2e.group.echonet/file/73/3/3207733.pdf

Newcomer User Guide – Overall Presentation 3

Arval (2/6) – Key Dates
1989 : Creation of Arval Service Lease in France. The company starts its activity with 6
employees.
1991, 1995, 1996 : Expansion of the Operations in Belgium and Italy and Spain.

1999 : First milestone reached with 100 000 leased vehicles

2000 : Renaming of the company under Arval PHH. Arval continues to expand globally,
with operations in North America (Element-Arval Global Alliance), Asia and Africa.

2004 – 2006 : Arval PHH becomes Arval. The company continues to expand and reaches
its second milestone in 2006 after reaching 500 000 leased vehicles.

2014 : Acquisition of General Electric’s Fleet

2016 : Acquisition of Relsa
2016 : 1 000 000 leased vehicles reached.

Newcomer User Guide – Overall Presentation 4

Arval (3/6) - Net Promoter Score (NPS)
NPS Definition : Formula ( = % of Promoters - % of Detractors ) indicating the
customer satisfaction rate. A detractor is a client rating Arval between 0 and 6 out of 10, a
promoter a rate between 9 and 10 out of 10. By the end of 2017, Arval’s NPS was standing
at 34,5 (9,7 growth in comparison with 2016).

1 2 3 4 5 6 7 8 9 10

Newcomer User Guide – Overall Presentation 5

Arval (4/6) – Key Financial Figures
Activity :

Financed Fleet (EoP 2018) : 1 193 910 vehicles

Financial Outstanding (EoP 2018) : 17.4bn€

Full Time Equivalents (EoP 2018) : 6 968 Permanent & Fixed term Contracts

Financials :
Organic NBI : 1.206bn€

Operating Expenses : 700M€

Net Income Before Tax (NIBT) : 585M€

Return on Notional Equity (RONE) : 32.3%

Full EoP 2018 Book : ICI

Newcomer User Guide – Overall Presentation 6

Arval (5/6) – Organisation Chart

Arval Organisation Chart Link: http://mediab2e.group.echonet/file/18/8/3535188.pdf

Newcomer User Guide – Overall Presentation 7

Arval (6/6) – BNP Paribas Group Activities

BNP Paribas Group Activities link: https://group.bnpparibas/en/group/activities

Newcomer User Guide – Overall Presentation 8

GMC Organisation (1/3) – Team (as of 2019)

Newcomer User Guide – Overall Presentation 9

GMC Organisation (3/3) – Tasks Allocation (as of 2018)

Newcomer User Guide – Overall Presentation 10

 GMC Organisation (/3) – Action Plan 2019
BUSINESS PARTNERSHIP DIGIDATALISATION STANDARDS & METHODS
Contribute to Provide solutions to simplify reporting Guarantee the accuracy
Arval objectives production and readability of our reported figures

►NBI/OPEX: in collaboration with ►“IRIS Origins”: extend the reporting ►Control Framework: define the
Corporate owners, identify and follow automation to Daytona countries; Controlling control framework;
the set of KPIs allowing to secure our leverage on ODS and future DW to perform control plans, on location in
revenues/savings, particularly those improve company data quality. countries.
generated by global initiatives.
►IAS used-car financials: complete the ►Re-Lease: define the methodology for
►RWA: coordinate and follow the the follow-up of the commercial and
different projects aiming at reducing developments of the calculation tool;
financial performance.
our Risk Weighted Assets. finally make the results and gaps
crystal clear!
►Perseus: adapt our reporting to the
►StAR: finalise project by launching new platform; understand and
the implementation phase (budget to ►“IRIS Inside”: explore data challenge models; possibly enrich
be approved). visualisation tools offer to be plugged these models for our own needs.
into IRIS.

►Define a training path > “Controlling Academy”

CONTRIBUTION ►TOM / Productivity Benchmarking
HR ►SAS training for Controlling Community
TO TRANSVERSAL DEVELOPMENT ►Promote the Controlling culture within the
INITIATIVES ►Credit Collection monitoring
company > E-learning module
Countries Contact List (1/1)
Presentation : Each GMC Controller is assigned to a list of countries of which he/she is
responsible of the financial reporting. An Excel Document has been created to monitor and
update the list of contacts for each country or Arval Entity (Artel, Arval Trading…).

Example:

Full Contact List:

\\frshares0161.france.intra.corp\DFC_Controle_de_Gestion_International\Documents\
01. Reporting Financier\Countries Summary\Contact pays.xlsx

Newcomer User Guide – Overall Presentation 12

Controlling Process (1/3) – Lifecycle of a vehicle
Financed Fleet Lifecycle

Stock Used
Order of Delivery Fleet Dehire Cars Disposal
Orders Stock

Lifecycle stages
Order: At this time, the Margin@Ordering (M@O) is calculated (cf. NUG-Advanced-
M@O,M@P,CrossBusiness).
Stock of Orders: Timeframe inbetween the Vehicle Order and its Delivery to the Customer.
Formula: Stock of Orders(M) = Stock of Orders(M-1) + Orders (M) – Orders cancelled(M) – Deliveries (M)
Delivery (also called ‘Production’): At this time, the Margin@Production (M@P) is calculated (cf. NUG-
Advanced-M@O,M@P,CrossBusiness).
Fleet: Fleet(M) = Fleet (M-1) + Deliveries(M) – Dehires(M)
Dehire (also called ‘Termination’): Restitution of the vehicle to Arval at the end of the contract.
Used Cars Stock: Time Frame inbetween the Dehire and the Disposal of the Vehicle.
Formula: Used Cars Stock(M) = Used Cars Stock (M-1) + Dehires(M) – Disposals(M) – Disasters(M)
Disposal: Vehicle sale on the second hand market: Disposals are mostly done via Motortrade
(https://www.motortrade.arval.fr/fr).

Newcomer User Guide – Overall Presentation 13

Controlling Process (2/3) – Reporting Calendar

Forecast 4

Forecast 3 Budget
Forecast 2

Forecast 1

M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12

Q1 Pré-Budget Q2 Q3 Q4

Reporting Calendar:
M1, M2 … M12: Monthly Closing (D++ at around D+5; Financial Book + 1-2 days; D++S + 1-2 days)

Q1, Q2, Q3, Q4 : Quarterly Reporting to BNPP (Reconciliation of the P&L and B/S on Matisse)

Forecast 1, 2, 3, 4: Forecast Reporting (F1: end of February; F2: end of May; F3: end of August; F4: end of November)

Pré-Budget: Forecast of the Budget and MTP figures

Budget (Year + 1, +2, +3) : 3 years Mid-Term Plan budgeted based on Forecast 3 figures.

Newcomer User Guide – Overall Presentation 14

Controlling Process (3/3) – 2019 Reporting Calendar Instructions

Link: \\frshares0161.france.intra.corp\DFC_Controle_de_Gestion_International\Documents\01. Reporting

Financier\2019\Planning\2019 Controlling Planning.xlsx

Newcomer User Guide – Overall Presentation 15

IRIS (1/3) – Definition and Cubes

Definition : Iris (International Reporting and Information System) is a centralized

multidimensional database, made of a set of cubes. Each IRIS cube is defined by a limited
number of dimensions storing data uploaded by the GMC or the Entities. Glossary

GMC IRIS cubes : ACT (Activity figures); BIL (Balance Sheet figures); CDR (P&L figures);
EFF (Headcount figures); M@P (Margin at Ordering/ Production figures); PRI (Deliveries
and Fleet split by Car manufacturers, cf. NUG-Basics-PRI/Volume Bonuses).

Link to the Detailed Presentation

Newcomer User Guide – Overall Presentation 16

IRIS (2/3) – Smartview/Essbase

Definition : Smartview/Essbase refers to the financial reporting tools used within Arval. In order to secure financial
information flows between Entities and the GMC, Arval uses two Excel tabs: Smartview and Essbase, both
developped by Oracle. Smartview enables the user to connect to Smartview, submit and refresh data into IRIS;
Essbase enables the user to display information about the selected member and change his alias (Code, French,
English).
Smartview/Essbase Excel Overview

Data Adjustment : Shall an entity asks to correct data figures within IRIS, it is highly recommended to create 4
tabs into the associated Excel file:
‘Data to be loaded’: figures sent by the entity
‘Before’: A copy of the original data aiming at saving the previosu figures
‘Input’: Data loading tab
‘After’: A tab designated to check eventual gaps between the previous and adjusted data

Newcomer User Guide – Overall Presentation 17

IRIS (2/3) – Business Units Organisation

Definition : A Country Entity is divided into two Business Units: the MTR BU and LTR BU. The
LTR BU englobes two sub business units: the SME (with additional information on the amount of
Private Lease contracts within the SME segment) and Corporate segments. MTR Activity KPIs are
created once a country reaches a minimal threshold of 100 MTR vehicles. Once a threshold of
1000 MTR vehicles is reached, a full P&L carve out becomes mandatory.

As a reminder, a SME client served by an MTR vehicle has to be reported in the MTR BU.

IRIS BU Organisation
Country

Long Term Rental Mid Term Rental

(LTR) (MTR)

Corporate SME
(Large, IBO & Public)

Of which Private Lease

Newcomer User Guide – Overall Presentation 18