The LeasePlan integration continued during the second half of FY22-23 for SG Fleet with a focus on further benefit extraction by standardising the Company’s offering across the two brands and leveraging its greater scale. Improved supply arrangements were obtained for tyres, accident management and roadside assistance, in addition to earlier fuel renegotiations.
“We have brought together our people and integrated various departments, and we have been very successful in retaining customers and increasing product penetration,” Mr Blau noted.
“While the changes we are making are positive from a product, risk, and customer point of view we obviously want to ensure we continue to give our customers the best possible service and not burden them with too much change.”
“For that reason, we have determined that we can improve the customer experience during the Australian system migration phase by making several planned product and services changes in the LeasePlan system and under the old brand first. This will ensure a smoother transition for customers when they do migrate to the SG Fleet system. As a consequence, the process will take longer and the final stages of the Australian system migration will now be completed towards the end of the 2025 financial year,” Mr Blau said.
Work on the New Zealand system continues as planned and will be completed around the end of the financial year. The process re-prioritisation has no impact on the 2024 financial year and the minor synergies flagged for the year are expected to remain.
Synergy benefits will continue to be extracted during the 2025 financial year, with the remaining synergies to follow in the 2026 financial year. After the end of the reported period, the Company also refinanced the LeasePlan securitisation warehouses on better general terms and with immaterial impact on cost of funds.
“We reconfirm our acquisition synergy targets and we are looking at opportunities to extract additional benefits,” Mr Blau commented.
