BARLOWORLD MOTOR ANALYSTS VISIT 21 st SEPTEMBER 2006
32 Brands
Strategy It remains.. To provide a range of motor vehicle usage solutions that address the needs of our Customers.
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
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
Organogram Barloworld Motor Motor Franchises SA Motor Franchises Australia Rent a Car SA Rent a Car Scandinavia Fleet Services Subaru
Our Internal Value Creation Chain South Africa Involved with over 100 000 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
Motor Group Overview Revenue Motor Africa Rent a Car Scandinavia Motor Australia August 2006 YTD Rent a Car Southern Africa Fleet Services
Motor Group Overview Profit Before Tax Motor Africa Motor Australia Rent a Car Scandinavia Fleet Services Rent a Car Southern Africa August 2006 YTD
Motor Group Overview Net Segmental Assets Motor Africa Motor Australia Fleet Services Rent a Car Scandinavia Rent a Car Southern Africa August 2006 YTD
Motor Group Overview Employees Motor Africa Motor Australia JVs Fleet Services Rent a Car Scandinavia Rent a Car Southern Africa August 2006 YTD
Business Environment
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 2 4 2 1 1 1 3 3 7 5 1 2 2 7 11
Motor Franchises - Joint Ventures Overview Country Region Franchises Number of Dealerships South Africa Durban Durban Pietermaritzburg Subaru DaimlerChrysler 1 7 2 Cape Town BMW 1
Motor Franchises Coachworks Overview Region South Africa Franchises BMW General Motors Toyota Volkswagen Number of Operations 3 1 2 2
Motor Franchises Dealer Market South Africa 55 Dealer Sales 2006 2005 2004 Barloworld Market Share 2006 8.0% Fin YTD Aug 493 008 414 796 315 545 2005 8.5% Units in 000's 50 45 40 35 30 25 20 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug 2004 2005 2006 August 2006 YTD
Motor Franchises New Vehicle Sales - Australia 105 100 Vehicle Sales 2006 2005 2004 Fin YTD Aug 881 316 908 427 836 245 Units in 000's 95 90 85 80 75 70 65 60 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug 2004 2005 2006 August 2006 YTD
Vehicle Sales Key Indicators New Units - Australia Key Indicators - Southern Africa Growth +11% +7% Used Units - Southern Africa - Australia +10% -9% August 2006 YTD
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%
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
Car Rental Overview Region Sthn Africa Scandinavia No of sites >115 366 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 > 100 43 5 50 10 56 3
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
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%
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
Fleet Services Fleet Growth Total Units Financed Fleet Under Maintenance Growth +3% +53% +34%
Subaru Unit Growth 2,500 1.0% 2,000 Units 1,500 1,000 0.5% Pass Mkt Share 500-2000 2001 2002 2003 2004 2005 Proj. 2006 0.0% Unit Sales 422 394 519 748 1,064 1,462 1,921 % of Pass. Dealer Market 0.20% 0.20% 0.30% 0.40% 0.40% 0.60% 0.60%
Summary Of Strategy
Our Strategy Overall 2 x 4 x 4 Value Creation through: Growth Margin Asset Turn
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)
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
Financial Performance CFROI Returns Group Operating Margin > 4% Strong Cash Flows Good Value Created
Questions