BUSINESS CONTEXT 2024 Companies setting or delivering strategies towards the energy transition, and sustainable mobility in general, face a long list of challenges to overcome: uncertain and complex EU and national regulatory environments with heterogeneous tax and legal rules across the markets, varying charging infrastructure maturities in countries where Arval operates, as well as electric vehicle prices volatility on primary and secondary markets. Arval assists its clients in navigating this environment, helping them target less emissive and safer mobility thanks to a pedagogical approach, insightful data and tailored advice fitting their needs and objectives. 5.6% growth in the leased fleet compared to 2023 EcoVadis Platinum medal Arval among the top 1% of companies assessed +52% of BEVs 1 in its leased fleet compared to 2023 85% of the employees 2 consider Arval to be an environmentally responsible company 89% of the customers 3 consider that Arval provides relevant expertise to their environmental and social responsibilities Around 8 ,600 employees More than 4 00,000 customers 29 countries Almost 1 .8 mi llion leased vehicles worldwide + Market trends + Market trends + Arval is future ready + Arval is future ready + Legislative outlook + Legislative outlook I Key business facts 2024 company overview (1) BEV Battery Electric Vehicle (2) 2024 Pulse employees’ survey (3) 2024 Net Promoter Score (NPS) customers survey (4) The Arval Mobility Observatory Fleet and Mobility Barometer was performed cross 30 countries, with more than 8600 interviews with fleet and mobility stakeholders. (5) https://www.linkedin.com/pulse/slow-lane-fast-how-electric-vehicle-adoption-faring-across-eqwpe/ (6) Investment fund focused on the sustainability of the Transportation sector. (7) Smart Energy Europe (SmartEN) is a European association of companies committed to promoting sustainable energy solutions. (8) Internal combustion engine (9) Internal Combustion Engine Legislative outlook In pursuit of climate neutrality by 2050, the European legislative framework for the automotive and transport sectors continues to evolve, requiring a rapid transformation of business strategies. Manufacturers are adapting proactively to meet increasingly ambitious CO2 reduction targets, though this context contributes to some price volatility in both new and used electric vehicles (EV).At the same time, incentives for electrification - such as tax breaks, subsidies and grants - remain diverse across countries where Arval operates, well-illustrating the heterogenous schemes implemented so far across EU Member States. The growing integration of vehicle weight into European tax frameworks reflects a broader and ongoing commitment to promote low-emission mobility across the continent. The EU taxonomy and the CSRD directive foster greater transparency, promote comparability between companies, and encourage a more comprehensive approach to corporate responsibility across their value chain. Ongoing simplification efforts could reduce the full impact of these instruments though improve the ability of corporates to comply. This evolving landscape definitely offers both opportunities and challenges. While manufacturers remain under pressure to phase out internal combustion engine (ICE) vehicles by 2035, the absence of harmonized incentives to encourage the EV’s adoption and the limited support for the second-hand EV market create uncertainties. These factors may in some ways slow down the ambitious roadmap, yet the overall direction remains clearly focused on accelerating the transition to sustainable mobility. Market trends While the European regulatory landscape is evolving fast, Arval’s Mobility Observatory Fleet and Mobility Barometer 20244 shows that 20% of corporates have already incorporated battery electric vehicles (BEVs) into their passenger car fleets. A further 16% plan to do so within the next three years. A key driver is the total cost of ownership (TCO), which provides a comparable cost basis between BEVs and ICE9 vehicles by including both acquisition and usage phases. TCO approach provides visibility to the BEV usage savings in maintenance and energy consumption. Such considerations are reflected in clients’ internal mobility policies and support their sustainability ambitions. Electrifying company cars is a key way of decarbonising corporate fleets. Technological improvements and an expanded passenger car offering have given to electrification a momentum, providing corporate customers with more EV options that fit their mileage and business needs. The Light Commercial Vehicle (LCV) market is still experiencing a more moderate growth in electric powertrains, despite the good progress in last-mile deliveries, and is driven by the introduction of Low Emissions Zones and the daily routes feasible within their mileage autonomy. Customers focusing on the operational efficiency of their commercial vehicle utilisation rates are often still struggling to find compatible e-LCVs. For individuals, the main barrier to adopting electric vehicles is the high purchase price, compounded by the uncertainty over future resale value, as a recent study by L’ObSoCo and BNP Paribas Mobility in the French market has highlighted5.Both corporate and individual consumers face challenges with BEVs relevant to their driving range, charging, battery health and resale value. Building a reliable charging infrastructure across Europe is essential to boost BEV driver confidence. Significant investment in charging infrastructure is needed to support the uptake of BEVs. Arval is future ready Through its leasing and alternative mobility business, Arval serves as an intermediary catalyst, fostering collaboration and innovation between manufacturers, corporate customers and end-users, while promoting sustainable mobility options and responsible business practices. Arval customers remain the sole decision-makers on their corporate fleet policies. Accelerating their energy transition requires a collective and collaborative action from users, leasers, car manufacturers, energy companies, regulators and public authorities. In this context, Arval operates in both new and used car markets, using its expertise to advise and develop relevant solutions that accelerate the transition to sustainable mobility, while controlling costs. Over the years, Arval has built a large range of mobility solutions powered by digital tools to meet present and future sustainable mobility needs, while leveraging partnerships that drive a holistic approach across the ecosystem: • Investing in initiatives and memberships that target decarbonisation (Shift4Good6) and that promote synergies between mobility and clean energy (SmartEN7). • Exploring solutions for smart charging via Arval Energy. • Partnering with innovative mobility players and the renewable energy sector to offer leasing solutions that integrate a charging offer. • Advising and consulting its customers, helping them overcome challenges, such as fleet electrification, diversification of mobility solutions, and optimisation of costs and the improvement of internal policies and processes. • Providing reassurance to customers about battery performance by offering battery health certificates when reselling used electric vehicles.