I OPERATING PRIMARY & SECOND-HAND CAR MARKETs Towards lower emissive primary & secondary car markets Arval’s business model encompasses both new and used car markets. The adoption of electrification in both is crucial to reach fleet decarbonation goals set by both Arval and its customers. Each market exhibits different needs, risks and readiness in terms of sustainable mobility. Respecting these needs, Arval supports the primary market by developing content and offers, while advising its customers in this fast-changing technological and regulatory environment. Additionally, Arval supports the growing maturity of the second-hand market by raising awareness and reassurance to buyers thanks to battery health certificates when reselling electric vehicles. Pricing and advice remain crucial levers for facilitating transition to lower emissive mobility for individuals and corporates. Raising awareness of sustainable mobility By providing advice and organising initiatives to promote Battery Electric Vehicles. Sustainable mobility challenges & Arval levers for the primary & secondary car markets To accelerate the transition to low-carbon fleets, Arval analyses market dynamics and offers its customers a range of solutions. Reassuring buyers by providing batteries certificates. Representing between 20% and 30% of the cost of an Battery Electric Vehicle (BEV) at purchase, the battery is also a source of concern for used vehicle buyers. The battery health survey 1 of the 8,300 electric vehicles tested, the average state of health of the batteries after 70,000 km was 93% 2 . BEV Drivers’ Guide Helping drivers with charging, extending the battery range, preserving the battery life and reducing energy costs. + Read More + Read More + Read More + Read More + Read More + Read More + Read More + Read More (1) This analysis was conducted by Arval through the study of 8,300 battery health certificates issued by Moba and Aviloo for used electric vehicles from 30 different brands sold by Arval from March 2023 to November 2024 in 8 countries (2) 100% being the theoretical state on entry into service • Primary car market: The challenge: High BEV prices, and the lack of tax benefits and subsides in many European countries, combined with the global geopolitical context, have created a wait-and-see attitude, delaying customers’ transition to electric vehicles. The levers: • Arval buys around 400,000 cars per year worldwide. This enables its sourcing to negotiate competitive prices with a. car manufacturers and authorised dealers. • Arval’s consulting teams support customers as they select mobility solutions best suited to their needs, applying a Total Cost of Ownership (TCO) approach that absorbs the transition cost to a less emissive car by reducing maintenance and energy costs throughout contract life. • Moreover, Arval offers a rich catalogue of cars, creating awareness of the impact of cars weight to exhaust emissions, while advising on lighter and less polluting cars. • Finally, through its release offers, Arval enables affordable access to well-maintained vehicles while extending the fleet retention. Arval aims to rationalise procurement of new cars, and thus upstream resources consumption and emissions. • Secondary car market:To accelerate in Battery Electric Vehicle (BEV) leasing, it is essential to support the development of the second-hand market. The maturity of this market directly influences the resale value of leased vehicles at end of contract, which is a fundamental element in the calculation of the leasing rental. This rental is a key decision-making criterion for the customers when choosing vehicles. The challenge: The low maturity of the second-hand BEV market in many countries stems from a lack of confidence in charging infrastructure, and uncertainty about battery reliability. In addition, the lack of fiscal incentives impact demand and hamper value retention over time. The levers: • Arval contributes to the development of the BEV market by reassuring buyers on battery performance after several years use, removing one of the obstacles to adoption. Arval is the first rental company to systematically offer a battery health certificate for second-hand electric vehicles. • Arval creates awareness of BEV technology through initiatives such as electric car days dedicated to used car dealers. These events demystify topics around usage, maintenance, safety and battery health. Moreover, Arval has issued an electric car guide for drivers addressing usage FAQs and practical delivery advice. Sustainable mobility challenges & Arval levers for primary & secondary car markets The choice of mobility solution is entirely in the hands of the customers and consumers. However, through Arval consulting function and a variety of initiatives, Arval is actively raising awareness on BEVs and alternative mobility, with the aim of embarking customers and consumers in a common decarbonisation objective for the benefit of the planet and communities. These initiatives include: • The Mobility Days 2024, an event jointly organised with other Group entities (Personal Finance, BPLS, Cardif, CIB). The event reinforced collective strength and expertise among Arval’s partners in the evolving mobility ecosystem. • Learning documents & advice on electric vehicles including charging tips, autonomy, cost and life span of batteries.The Arval Mobility Observatory’s (AMO) white paper “10 questions on eLCVs”, which gives fleet-managing stakeholders insights and strategies needed to navigate the shift towards electric light commercial vehicles (eLCVs) successfully. Raising awareness of sustainable mobility Reassuring buyers by providing batteries certificates Key data on battery health the average state of health* of the batteries after 70,000 km 93% of the batteries tested remained in a state of health* above 80% 98% *The theoretical state of health of a battery when entering into service Arval is the first leasing company to offer battery health certificates for used BEVs. This unique initiative aims to reassure customers about battery performance after several years of use, while encouraging the purchase of used BEVs by removing one of the main barriers to their adoption. The battery health certificates are issued by Moba and Aviloo, two companies specialised in battery evaluation that are among the only three companies approved by the Car Remarketing Association Europe (CARA). The survey1: The results of the survey showed that electric vehicle batteries maintain their performance over time: • Average battery health was 93% - 100% being the theoretical health status of the battery when the vehicle is first put on the road. • The vast majority (98%) of the measured health statuses were above 80%. • After doing 70,000 km, the average state of health of an electric vehicle battery was 93%. • Beyond 200,000 km, the health status remained close to 90% on average. • By advocating transparency in battery health data, Arval encourages its sector to generalise the use of battery health certificates. This initiative illustrates Arval’s desire to promote an intelligent and informed adoption of used EVs, while strengthening buyer confidence. In Q3, 2024, Arval launched an electric vehicle driver’s guide including explanations and recommendations on charging, extending battery range, preserving battery life, and reducing energy costs. This 17-page illustrative guide was produced following feedback from Arval customers who wanted to improve their experience with electric vehicles. It is now available on the local public webpages. BEV Drivers’ Guide