DARREN LEIGH Managing Director Baltics Market

Transcription

1 DARREN LEIGH Managing Director Baltics Market

2 Market Overview Population 6.9m Languages Estonian, Latvian, Lithuanian, Russian Currencies Euro and Euro pegged Lat and Lita Capital Cities Tallinn, Riga, Vilnius GDP US$ 80.2bn Source: IMF The Baltic Countries Estonia, Latvia, and Lithuania gained their independence from the former USSR in 1991 and joined the EU in 2004

3 Commercial Overview Economy Stable growth prospects Banking sector Low sovereign risks Decreasing unemployment Inflation Strongly impacted by global financial crisis but now starting to see improvement in the economy GDP= US$ 80.2 billion 5.8% GDP CAGR projected through 2015 Strongly integrated in European banking system Credit ratings on January 2011: Estonia A-1, Latvia BBB-, Lithuania Baa1 Average 15% in January 2011, reducing to 8.5% by 2015 Low rates of inflation <2% GDP growth (CAGR) % 5.8 % Population (CAGR) (0.6)% (0.4) % Unemployment rate 17 % 8.5 % Inflation % % Baltics emerging out of recession Source: IMF

4 Automotive Overview Stable population Clear population clusters 6.9m people Projected to have stable population through to 2015 Over 30% of population live in 4 main cities Tallinn, Riga, Vilnius, Kaunas Low population density Potential for car penetration growth High investment in road infrastructure Premium sector preferences Population density = 39.5 people per sq km (vs 255 in UK) 260 registered cars per 1000 people (vs 494 in UK) Large investments made since 2004 EU incorporation Large, premium and SUV sectors represent >30% of market in 2011 Automotive sector growing fuelled by availability of finance and improved consumer confidence

5 The Baltic Total Industry Volume Increasing consumer confidence Re-Introduction of vehicle finance by banks Replenishment of fleets by governments and corporates 000 Vehicles Source: Global Insight Baltics car market recovering after 2008/2009 crisis

6 Retail Locations 22 Inchcape retail locations

7 Capital Region Retail Centres Riga, Skanstes - Ford and Mazda

8 Capital Region Retail Centres Riga, BM Auto - BMW, Mini, Jaguar, Land Rover

9 Capital Region Retail Centres Tallinn, Läike tee - Land Rover, Jaguar, Mazda

10 Capital Region Retail Centres Vilnius - Jaguar, Land Rover, Ford, Mazda, Hyundai

11 Retail Locations A further 18 authorised third party retail locations

12 Baltics Journey Back to Profitability TIV 98,000 74,800 25,590 28,060 Retail Centres Employees Business rightsized during crisis to appropriate size for market

13 Our top 5 Priorities Growing market share Growing aftersales Improving margin Controlling working capital Selective capital expenditure

14 Operational focus on our top 5 priorities to deliver our Customer 1 st strategy Growing market share Exciting new models Positioned to outperform market in premium sector (Land Rover, Jaguar, BMW) Entry priced models and up-selling Recruitment of experienced fleet and LCV professionals Traffic Leads/Traffic Test drives/traffic Order Traffic Growing aftersales Focus on post-warranty car parc Free Vehicle Health Check creating big up-sell opportunities Selling extended warranty products with new and used car sales Enquiries Booking/Enquiry Intakes/Enquiry Top line sales growth

15 2011 New Model Launches BMW X3 & 6 Series Hyundai ix 20 Mazda 2 & 3 face lift Range Rover Freelander 2 F/L & 2WD Ford Focus Hyundai i10 & i40 Mazda 5 Jaguar XF 22 diesel Jaguar XF 12MYSoS Jaguar XJ 12MYSoS Range Rover Evoque 3D & 5D Hyundai Veloster

16 Operational focus on our top 5 priorities to deliver our Customer 1 st strategy Improving margin Margin driven sales incentives Silver packages for post-warranty customers Parts wholesales to independent network Retail centre and sales executive benchmarking to drive competitive selling Controlling working capital 1.5 months stock cover Focus on aged stock Selective capital expenditure State of the art facilities with limited maintenance capex Continued margin expansion whilst maintaining robust control

17 Inchcape Baltics Economies emerging out of recession Market growing at attractive rate Exciting product launches Capital region business model Lower cost base and operational gearing opportunity Uniquely positioned to leverage growing market