SPENCER LOCK CEO Inchcape Australasia

Transcription

1 SPENCER LOCK CEO Inchcape Australasia

2 Market Overview Population 22.1 million Language English Currency Australian Dollar Capital City Canberra GDP US$1.2 trillion Australia has had one of the most outstanding economies of the world in recent years Source: IMF

3 Commercial Overview Stable economy Only developed country to avoid recession during the GFC Substantial economy, with strong growth prospects Stable banking sector GDP = ~US$1.2 trillion 6.1% CAGR GDP growth projected No bank bailouts during GFC Low exposure to sub-prime loans Low sovereign risk AAA rating on govt debt since no downgrade during GFC Low unemployment Currently 5.5% million in 2010 Resources driven export economy Direct linkage to Chinese and Indian growth engines Resources = 43% of exports China, Japan, S Korea and India the top 4 Australian export destinations with substantial growth projected over coming years Top 5 producer of most of the world s key minerals commodities GDP growth (CAGR) 10.9% 6.1% Population (CAGR) 1.6% 1.2% Unemployment rate 4.8% 4-5% Inflation 5.3% 5-7% Australia s economy is stable and growing Source: IMF

4 Automotive Overview Large country with high population growth Vast country, low population density Low car costs High rates of car ownership and usage High investment in road infrastructure 22.1m people Over 50% of population live in 3 cities Sydney, Melbourne, Brisbane Population density = 3 people per sq km (vs 255 in UK) Owning and operating a car in Australia costs less than half of that in the UK 72 registered cars per hundred people Only 13% of kms travelled in Australian cities are by public transport 50% of major transport infrastructure investment since 2001 has gone into roads AUD$100bn invested in roads since 2001 Australia s population is growing rapidly and is car-oriented

5 Australian Automotive Market Summary

6 Total Industry Volume vehicles Source: Global Insight

7 Business Model Distribution Retail Australia New Zealand Sydney Melbourne Brisbane Import, Distribution and Marketing of Subaru Vehicles and Parts 101 Retail Centres in Australia 14 Retail Centres in New Zealand Employees Sales of New Cars, Used Cars, Finance and Insurance, Servicing and Parts Subaru VW Kia Mitsubishi Employees Sydney, Melbourne, Brisbane Sydney Brisbane Brisbane AutoNexus Parts and Vehicle logistics for Distribution, Retail and Third Party Customers

8 Powering ahead worldwide Inchcape Retail Australia

9 Australian Automotive Market Summary 5 Sales / 7 Service locations Docklands Mentone Fountain Gate Glen Waverley Doncaster Ringwood / Camberwell

10 Australian Automotive Market Summary Subaru - 5 Sales / 9 Service locations: Lindfield Sales and Service Artarmon Service Parramatta Sales and Service Penrith Sales and Service Springwood Narellan Sales and Service Waitara Sales and Service Campbelltown Service Castle Hill Service VW - 2 Sales / Service locations: Parramatta (Denlo) North Shore (Chatswood Classic Cars)

11 Australian Automotive Market Summary Subaru - 2 Sales / 3 Service locations: Rothwell Morayfield Bribie Island Kia - 2 Sales / Service locations: Rothwell Morayfield Mitsubishi -1 Sales / Service location: Morayfield

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

13 Operational focus on our top 5 priorities to deliver our Customer 1 st strategy Growing market share Utilise our established Inchcape Advantage processes to deliver increased new car volumes for Subaru and other brand partners Leverage key new model launches from OEM brand partners Subaru Impreza and XV, Volkswagen Touareg, Passat, EOS and Jetta ilead Centralised Used Car on-line enquiry team Traffic Leads/Traffic Test drives/traffic Order/ Traffic Growing aftersales Introduction of Vehicle Health Check (VHC) processes Establishment of Tyre programme Improved conversion and retention from existing centralised services booking and follow-up call centre Drive-in service reception and express services Enquiries Booking/Enquiry Intakes/Enquiry

14 Operational focus on our top 5 priorities to deliver our Customer 1 st strategy Improving margin Finance and Insurance products to improve margins and drive consumer accessibility / affordability Improved purchasing tyres, oils, consumables Improved used car stock turn Controlling working capital Focus on improved new and used vehicles stock turn Reduction in debtor days Selective capital expenditure Investment in CRM capability In fill service points to address aftersales coverage as a result of growing Subaru vehicle parc

15 Powering ahead worldwide NICK SENIOR MD Subaru Australia

16 The Subaru World: Australia is #1 in the world for market share amongst the major markets Sales Jan Dec Market Share US 262, % Japan 76, % China 57, % Australia 40, % Canada 27, % Russia 8, % Switzerland8, % Germany 7, % Italy 6, % Israel 5, % UK 3, % includes minicar models present only in domestic market

17 Subaru Retail Sales Subaru Sales 000 vehicles Market share %

18 Model and Segment Shares Subaru Share Forester Segment Share 31.2% 11.4% Subaru Share Impreza Segment Share 41.2% 7.7% Subaru Share Liberty Segment Share 12.4% 10.0% Subaru Share Outback Segment Share 12.6% 4.6%

19 New Models Next Generation Impreza Unveiled at New York Auto show in April Addresses customers key Impreza concerns: Exterior styling Interior design Fuel economy Transmission technology In Australia s largest segment (small car category) Subaru XV Concept Pointer to new category killer compact SUV Practicality with stylish design Our baby Forester

20 New Products Impeza New Gen. (FB/ISS/6MT/CVT) Facelift (Eyesight) XV New Gen. (FB/ISS/6MT/CVT) WRX/STI New Gen. Forester New Gen. (ISS/CVT) (Diesel CVT) Liberty (Eyesight 3.6L) Facelift (Eyesight 2.5L) (FB Engine) Outback (Eyesight 3.6L) Facelift (Eyesight 2.5L) (FB Engine) (Diesel CVT) Exiga Facelift (Reverse Camera) (7 seat) Tribeca AS1

21 Dealer Network Northern Territory National Dealer Network 101 sites 27 7 Western Australia 7 3 South Australia Queensland New South Wales Victoria Tasmania

22 Subaru Retail Network

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

24 Operational focus on our top 5 priorities to deliver our Customer 1 st strategy Growing market share Launch of new generation Impreza and Subaru XV Limited / Special Editions, some with brand partners like Columbia and Mizuno Higher focus on under-performing regions has lifted share closer to national average Traffic Leads/Traffic Test drives/traffic Order/ Traffic Growing aftersales Improve Service Customer Retention Enhance service experience (PSRV) Value-add accessory promotions Incentivise dealers on accessory per unit sales Enquiries Booking/Enquiry Intakes/Enquiry

25 Market Share Growth Work with strong brand partners Add customer value, not drop price Enthuse sales staff with regular programmes Drive accessory sales

26 Operational focus on our top 5 priorities to deliver our Customer 1 st strategy Growing market share Launch of new generation Impreza and Subaru XV Limited / Special Editions, some with brand partners like Columbia and Mizuno Higher focus on under-performing regions has lifted share closer to national average Traffic Leads/Traffic Test drives/traffic Order/ Traffic Growing aftersales Improve Service Customer Retention Enhance service experience (PSRV) Value-add accessory promotions Incentivise dealers on accessory per unit sales Enquiries Booking/Enquiry Intakes/Enquiry

27 Aftersales Growth PSRV Performance, Safety, Retained Value Your Service Details Reference Card Pull Up Banners Simplify the billing process, transparency from go to whoa and humanise the service reception area Increase retention from parts business, growth loyalty/ advocacy Next Service Brochure Benefits IAL/IAR /ANX/ Subaru Australia/Retailers

28 Operational focus on our top 5 priorities to deliver our Customer 1 st strategy Growing market share Launch of new generation Impreza and Subaru XV Limited / Special Editions, some with brand partners like Columbia and Mizuno Higher focus on under-performing regions has lifted share closer to national average Traffic Leads/Traffic Test drives/traffic Order/ Traffic Growing aftersales Improve Service Customer Retention Enhance service experience (PSRV) Value-add accessory promotions Incentivise dealers on accessory per unit sales Enquiries Booking/Enquiry Intakes/Enquiry

29 Operational focus on our top 5 priorities to deliver our Customer 1 st strategy Improving margin Richer model mix with A&P focus on high-end models (WRX, Outback, Liberty GT, Forester S-Edition) Added value, not lower transaction prices, in model run-out programmes (Impreza with leather, alloys, sunroof) Cap fleet and rental sales to drive higher retained value, increases brand desirability Controlling working capital Tight stock management (distributor 2.2 weeks, dealer 4.3 weeks) Strict adherence to Vehicle Forward Ordering System (VFOS) Tight control over Aged Stock (>60 days is our measurement) Selective capital expenditure Subaru TV Subaru iphone Apps New Investment in CRM

30 Subaru TV Helps sales staff to communicate technical benefits to customers Through Subaru TV and iphone apps we focus on the benefits of our technology Subaru TV is an interaction showroom digital display platform which enables sales staff to control to show consumers content of their choice to assist in the sales conversion process Also these two features can induct and train new sales people very quickly

31 Total redevelopment of to be launched this year Fully integrated with new CRM for seamless integration of all customer touchpoints

32 Inchcape Australia Subaru Australia and Inchcape Retail are well established and robust business units delivering strong returns and cash generation The Australian economy is primed for further growth driven by trading links with Asia and in particular China Forecast economic growth plus growth in the population will drive steady new car growth delivering on increased vehicle parc Strong GDP per capita and low cost of ownership will ensure that high rates of car ownership remain unchallenged