good trading performance in the second half due to the introduction of new models and the penetration of new segments revenue quasi flat, the low performance in the first half being nearly offset by revenue increase in the second half operating margin on revenue flat despite higher ing costs, thanks to mix improvement of products and activities as well as cost control completion of the networks restructuring launch of a competitiveness improvement programme in D Ieteren Brussels agencies KEY FIGURES (in EUR million) 23 22 Var. New vehicles invoiced (in units) 89,968 9,9-6.2 Revenue 1,86.1 1,877.6 -.9 Operating result.9 2.8-3.6 Current result after taxes (1), group s share 36.9 3.6 +3.7 (1) After allocation to the vehicle glass segment of a financial result after taxes of EUR 8.3 million (EUR 7. million in 22) associated with the investment of D Ieteren in this segment. BREAKDOWN OF REVENUE BY ACTIVITY (in ) MARKET SHARE OF THE DISTRIBUTED MAKES (new car - in ) 23 22 21 2 1999 Volkswagen 9.86 1. 11.94 12.34 13.1 Audi 4.36 4.26 3.86 3.4 3.8 Seat 2.2 2.2 2.4 2.68 2.44 Skoda 1.36 1.38 1.47 1.3.88 Bentley/Lamborghini - - - - - Porsche.14.13.1.11.11 D Ieteren Auto 17.74 18.2 2 19.61 2.11 23 Var. New vehicles 72-1.6 Used vehicles 1-7.1 Parts & service 8 -.8 Garages 2 +3. D Ieteren Lease +9.8 D Ieteren Sport 3 +9.1 D Ieteren Auto 1 -.9 16
D Ieteren Auto
Activities and results Achievements and strategic developments Prospects Activities and results In a Belgian new vehicle in decline for the third year in a row, D Ieteren Auto has, in 23, contained its revenue decline to.9 vs 22, thanks to the mix of vehicles sold and a good performance overall of its other activities. NEW VEHICLES In the new car, were up 11.9 in the second half compared to 22. This increase did however not offset the 1.2 decline in the first half of 23 : for the full year, 48,796 cars were registered, 1.9 less than prior year. The makes distributed by D Ieteren Auto achieved a share of 23 of 17.7 (18. in 22), and reached 18.6 in H2, an improvement compared to 17.1 in H1 23 and 18.4 in H2 22. The Volkswagen make, which achieved more than half of the of D Ieteren Auto, booked a decrease of 3.2 in its. Indeed, the make faced fierce competition in the small car segment. However, this evolution has been partly offset by the positive contribution of the small people carrier Touran, introduced in May, and, in a lesser degree, by the new Golf, commercialised at the end of the year. Audi witnessed a record year, ranking first in the Belgian luxury segment mainly thanks to the success of its A4 range and its new A3 model, introduced in May 23. Seat and Skoda registered a share decrease while Porsche recorded a registration growth of over 1, mainly due to the introduction of the Cayenne 4x4. The commercial vehicle was up 4.1 with,66 new in 23. The share of the makes distributed by D Ieteren Auto declined to 8. (11.3 in 22) due to the production stopping of the VW Caddy since May 23 in anticipation of the introduction of the new model. Total new vehicles, including commercial vehicles, billed by D Ieteren Auto amounted to 89,968 units for the year, 6.2 lower than prior year. D Ieteren Auto s new vehicle revenue is down by 1.6 compared to 22, the impact of the volume reduction having been partly offset by the mix effect of a higher average value per vehicle sold. OTHER ACTIVITIES Used cars revenue decreased by 7.1 in 23, the low level of the first half partly offset by a recovery of activities at the end of the year. On the 1 to years old car, My Way revenue was up by almost 27 at EUR 1.6 million in 23. A second centre was opened in October 23 in Kortenberg to expand the catchment area. Revenue from spare parts and accessories remained almost stable compared to 22, at EUR 11.3 million, resulting from an increase in the sales of spare parts and a reduction in accessory sales associated with the reduction in the number of vehicles sold. The after-sales activities of the D Ieteren agencies registered a growth of 3. in revenue, totalling EUR 41.1 million. D Ieteren Lease revenue was up by 9.8 at EUR 93.4 million. On 31 December 23, its fleet comprised 1,72 long-term leased vehicles, 7.4 more than in 22. This growth resulted from competitive pricing, efficient vehicle resale management and an original range of products tailored to the needs of each customer segment. D Ieteren Sport revenue increased by 9.1 to EUR 8.8 million, including the revenue from motorbikes and scooters of the Yamaha and MBK makes, quads, as well as accessories and spare parts for the two-wheel. Registrations of Yamaha motorbikes were up by 7., allowing the make to increase its share to 21. (against 2.1 in 22) on a that was up by 3.4. 18
RESULTS The operating result amounted to EUR.9 million, down 3.6. Despite the increase in costs linked to the launch of new models, the operating margin remained stable at 2.7 of revenue due to the improvement in the mix of activities and products, a promotional policy that emphasises equipment upgrades rather than price reductions, and a tight cost control. The net financial costs (1) fell from EUR 8.8 million to EUR 4.3 million, due to the reduction in interest rates and the valuation of own shares (write-off in 22, write-back in 23). A net extraordinary income before taxes of EUR 8.8 million was booked in 23. This results from the sale of non-strategic assets, write-backs on provisions booked in order to bring the provision recognition criteria closer to the IFRS standards, and from the cost of staff reductions in the Brussels D Ieteren agencies. The current result after taxes (1), group s share, amounts to EUR 36.9 million, up 3.7 compared to 22. Achievements and strategic developments The new European regulation and the specialised policy of the makes within the Volkswagen group have led to major adaptations of the networks. D Ieteren Auto concluded new contracts in 23 with the members of its and service networks, applying new rules that entered into force on October 1, 22. D Ieteren Auto also continued with the process of separating the Volkswagen and Audi makes into two different networks, optimising dealer locations around necessary business potential. Finally, the Seat and Skoda networks entered into their rationalisation process. This reorganisation of the networks leads to a reduction in the number of dealers, spread over three years. D Ieteren Auto also implemented a project in 23 to restore the competitiveness of its own Volkswagen and Audi agencies in Brussels. The reduction of around forty jobs within these agencies was agreed with personnel representatives. Qualitative improvement of the after-sales services is also underway. This plan goes hand in hand with the specialisation of the agencies by make. The opening of the Audi Center in Zaventem last December is the most recent development in the investment programme underway. MARKET OF NEW CARS AND MARKET SHARE OF D IETEREN AUTO 2 6, 1 4, 1 2, 94 9 96 97 98 99 1 2 3 COMMERCIAL VEHICLE MARKET AND D IETEREN AUTO MARKET SHARE (1) 2 4, 1 3, 1 1, 99 1 2 3 17.9 387,348 8,18 13.9 19.6 38,868 397,39 4,122 13.7 2. 396,24 42,129 8,138 12.3 2.1 489,621 19.6 1,24 488,683 48,91 11.3 18. 467,69 17.8 48,796,66 8. (1) VW, Seat and Skoda light commercial vehicles up to 6 tons. MOTORCYCLE MARKET AND YAMAHA MARKET SHARE 3, 21.1 2.3 2.1 21. 2 1 2, 1 1, 99 28,61 2,319 21,229 1 21,3 2 22,224 3 (1) After allocation to the vehicle glass segment of a financial result after taxes of EUR 8.3 million (EUR 7. million in 22). 19
CALENDAR FOR THE INTRODUCTION OF NEW MODELS 24-2 Volkswagen Caddy Spring 24 Golf GTI Autumn 24 Passat Saloon 1st half 2 Golf MPV 1st half 2 Lupo 2nd half 2 Bora 2nd half 2 Passat Variant 2nd half 2 Audi A6 Saloon Spring 24 A3 -doors Autumn 24 A6 Avant Spring 2 Seat Altea Summer 24 Toledo Autumn 24 Leon Summer 2 Skoda Octavia Saloon Summer 24 Octavia Combi 1st half 2 Lamborghini Gallardo December 23 Murciélago Roadster 1st half 2 Porsche Carrera GT January 24 911 Autumn 24 Boxster Spring 2 Yamaha Fazer 6 Naked March 24 XT66X April 24 XT66R March 24 R1 March 24 Taking advantage of the recovery in demand and the availability of new models Prospects The recovery in demand observed during the second half of 23 seems to be ongoing at the beginning of this year, amplified by the favourable effect of the Brussels Car Show. For the full year, the new car should increase by around 3 to reach 47, units. The commercial vehicle should continue with its favourable development in 24, influenced by the recovery of confidence of companies. Thanks to strengthened networks, extended and partly renewed ranges, reinforced programmes to attract new customers and maintain the loyalty of existing customers, D Ieteren Auto expects an increase of around 1 of the number of new vehicles sold and is targeting a share close to 19 of new car. The small people carrier VW Touran, the new Golf, the new Audi A6 and - door A3 and the small sporty people carrier Seat Altea scheduled to be launched in the course of 24, will contribute to this growth. The new VW Caddy, available as from spring 24 will allow D Ieteren Auto to significantly increase its in the commercial vehicle. 2