BARLOWORLD MOTOR BARLOWORLD MOTOR ANALYSTS VISIT

Transcription

1 BARLOWORLD MOTOR ANALYSTS VISIT 21 st SEPTEMBER 2006

2 32 Brands

3 Strategy It remains.. To provide a range of motor vehicle usage solutions that address the needs of our Customers.

4 Value Based Management Community Good relationships with Principals New opportunities offered / agreed Avis RAC SA benchmark for Avis Europe Suppliers Third largest Contributor Shareholders Customers Good CSI in Avis Motor Retail focus Various Initiatives Sustainability CSI Employees Avis and Motor Retail: Good results in Best Company to Work For &, latest IPM

5 Group Overview What we did last year. Acquisition of Assets Organic growth Disposal of Assets Future secure BEE Acquired Avis & Budget in Denmark Acquired remaining 50% Zeda Car Leasing (AFS SA) Acquired Freightliner - Bloemfontein Acquired Subaru Durban Dealership (NMIDSM JV) Acquired Moorabbin site in Melbourne Australia Acquired Head Office Building in Isando Acquired Chevrolet in Centurion Opened Renault Dealerships in Rosebank and Bruma Opened 2 Chevrolet Dealerships Opened Subaru Bruma Opened SEAT Cape Town Disposed of Barons Claremont (Audi & VW) Disposed of Audi Woodmead Disposed of Club Motors Namibia Secured NDoT contract Ongoing review of Fleet Services Structure & Offering Restructured Senior Management Avis Namibia BEE transaction Phavisworld JV in Avis Fleet Services Broad-based approach / assessment

6 Organogram Barloworld Motor Motor Franchises SA Motor Franchises Australia Rent a Car SA Rent a Car Scandinavia Fleet Services Subaru

7 Our Internal Value Creation Chain South Africa Involved with over vehicles in SA Synergies include: Sourcing Used Car F&I Products Coachworks Parts Service New Cars Parts Service Coachworks Usage Used Cars Motor Retail Motor Retail Avis Car Rental Avis Fleet Services Motor Retail Avis Car Rental Avis Fleet Services

8 Motor Group Overview Revenue Motor Africa Rent a Car Scandinavia Motor Australia August 2006 YTD Rent a Car Southern Africa Fleet Services

9 Motor Group Overview Profit Before Tax Motor Africa Motor Australia Rent a Car Scandinavia Fleet Services Rent a Car Southern Africa August 2006 YTD

10 Motor Group Overview Net Segmental Assets Motor Africa Motor Australia Fleet Services Rent a Car Scandinavia Rent a Car Southern Africa August 2006 YTD

11 Motor Group Overview Employees Motor Africa Motor Australia JVs Fleet Services Rent a Car Scandinavia Rent a Car Southern Africa August 2006 YTD

12 Business Environment

13 Motor Franchises Overview Region Australia Botswana South Africa Franchises Holden Volkswagen Mercedes Benz Audi, Volkswagen Ford, Mazda Volvo, Jaguar BMW DaimlerChrysler Ford, Mazda, Landrover General Motors Nissan Renault Subaru Toyota Volkswagen, Audi, SEAT Number of Dealerships

14 Motor Franchises - Joint Ventures Overview Country Region Franchises Number of Dealerships South Africa Durban Durban Pietermaritzburg Subaru DaimlerChrysler Cape Town BMW 1

15 Motor Franchises Coachworks Overview Region South Africa Franchises BMW General Motors Toyota Volkswagen Number of Operations

16 Motor Franchises Dealer Market South Africa 55 Dealer Sales Barloworld Market Share % Fin YTD Aug % Units in 000's Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug August 2006 YTD

17 Motor Franchises New Vehicle Sales - Australia Vehicle Sales Fin YTD Aug Units in 000's Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug August 2006 YTD

18 Vehicle Sales Key Indicators New Units - Australia Key Indicators - Southern Africa Growth +11% +7% Used Units - Southern Africa - Australia +10% -9% August 2006 YTD

19 Motor Franchises Key Indicators Parts Revenue - Southern Africa - Australia Key Indicators Growth +9% +13% Service Hours Sold - Southern Africa - Australia +4% +1% Finance & Insurance Net Profit August 2006 YTD - Southern Africa - Australia +23% +32%

20 Motor Franchises Overview: Revenue Dept New Used Parts Service Coachworks Other Driveway Southern Africa 59% 27% 9% 4% 1% 0.3% 0.2% Australia 64% 23% 7% 6% 0% 0% 0% August 2006 YTD

21 Car Rental Overview Region Sthn Africa Scandinavia No of sites > August 2006 YTD Region South Africa Botswana Namibia Mozambique Zambia Denmark Norway Sweden Franchises Avis Sizwe Avis Avis Avis Avis Avis Budget Avis Budget Avis Budget Number of Sites >

22 Car Rental Key Indicators Rental Days Rate Per Day - Southern Africa - Scandinavia Key Indicators - Southern Africa - Scandinavia (Includes DK in comparative period) Growth +19% +13% 1% -4% August 2006 YTD

23 Car Rental Key Indicators Key Indicators Growth Rental Fleet Utilisation - Southern Africa - Scandinavia -2% +4% People Productivity (Rental transactions per person/month) - Southern Africa - Scandinavia Key Indicators +4% +2% Growth August 2006 YTD Fleet Size - Southern Africa - Scandinavia +15% +10%

24 Fleet Services Structure Barloworld Motor Fleet Services Car Mall Avis Fleet Services 100% AFS South Africa Fleet Accident Management 100% AFS Botswana Masterdrive 100% AFS Mozambique 75% AFS Namibia 60% Vuswa Fleet Services 50% Phavisworld WesBank s 50% share of AFS purchased in 2006

25 Fleet Services Fleet Growth Total Units Financed Fleet Under Maintenance Growth +3% +53% +34%

26 Subaru Unit Growth 2, % 2,000 Units 1,500 1, % Pass Mkt Share Proj % Unit Sales ,064 1,462 1,921 % of Pass. Dealer Market 0.20% 0.20% 0.30% 0.40% 0.40% 0.60% 0.60%

27 Summary Of Strategy

28 Our Strategy Overall 2 x 4 x 4 Value Creation through: Growth Margin Asset Turn

29 Approach to Motor Group Strategy Steps 1,2,3 Each Business Unit has its own strategy Primary focus for MD s and Business Unit Teams Maximise Synergies from Business Units Collective MDs, Executive & Management Focus Develop Solutions (Services & Products) for: Motor Vehicle Usage (by packaging products)

30 Our Strategy Group Strategic Initiatives Business Unit Strategy & Performance Extract Synergies BEE Solution Progress Motor Vehicle Usage Solutions Drive Employee Value Creation Focus on Sustainability aspects of Business

31 Financial Performance CFROI Returns Group Operating Margin > 4% Strong Cash Flows Good Value Created

32 Questions