Automotive and Logistics Martin Laubscher CEO Barloworld Automotive and Logistics 25 March 2013
Automotive and Logistics Division Automotive and Logistics Division overview Customers Barloworld Automotive (Automotive Business model) Barloworld Logistics Motor Retail Southern Africa Car Rental Fleet Services Digital Disposal Solutions Motor Retail Australia Supply Chain Mangmt Freight Mangmt and Services Supply Chain Software Transport Solutions Communication, HR, IT, Legal, Finance, Sustainable Development, Strategy, Empowerment and Transformation, Risk Management, Business Development and Sales, Governance, Ethics and Compliance Inter-business unit synergies and cost efficiencies Apply Collective Wisdom Leveraging Automotive infrastructure to achieve critical mass for growth Retain strategic focus on each business unit 2
Automotive and Logistics Division overview Sense of Scale General Information Employees 10 611 Countries 16 Automotive Principals Avis; BMW; Chrysler/Fiat; Daimler; Ford; General Motors; Mazda; Toyota; Volkswagen Car Rental locations >190 Wholly owned Motor Retail dealerships (SnA & Oz) 40 Key Indicators FY Sep 2011 FY Sep 2012 Rental Days 5.14m 5.71m New & Used retail units sold 85 092 88 467 Total vehicles under management 195 788 227 019 New vehicles sold per dealership per month 71 76 DTS km s travelled FY 12 44.3m SAT tons shipped FY 12 15.575t 3
Automotive and Logistics Division overview Strong overall result in a competitive trading environment Revenue: R29.5bn (FY 11: R26.4bn) up 12% Record operating profit R1 152m (FY 11: R911m) up 26% Operating margin for the year 3.9% (FY 11: 3.4%) Car Rental Motor Retail Fleet Services Logistics Operating profit (Rm) +14% +26% +23% +170% - 100 200 300 400 500 600 Sep 2012 Sep 2011 Margin 7.1% 6.6% 2.4% 2.1% 15.2% 16.0% 2.2% 0.8% 4
Automotive and Logistics Division overview Enhance return on equity Continued cash focus Targeted capital allocation Growing market share Optimising vehicle fleets (utilisation) Managing working capital levels Improving asset turn Expense management Controlling interest costs Implementing Logistics growth strategy Exceeding customer expectations 5
Automotive and Logistics Division overview Corporate activity Secured Lesotho government contract extension in Avis Fleet Services (AFS) AFS secured City of Johannesburg outsourced fleet management contract for 5 years Acquired a minority interest in re environmental solutions and waste management business Acquired a 50.1% share in Manline and formed Barloworld Transport Solutions Emphasis on driving profitable growth and enhancing financial returns 6
Motor Retail Chris Wierenga (Roland Egger) Exec: Strategy (CE Motor Retail)
% Growth Automotive and Logistics Division overview Motor Retail Fewer, Bigger, Better Strategy continues - 81 new vehicles sold per dealership per month (Sep 12: 76) - Appropriate dealership footprint Southern Africa - Focused brand strategy aligned to overall Automotive business model - Improved operating margin through cost containment and margin expansion - Continued strong finance and insurance contribution Australia - Portfolio performing well Leading Indicators SA - Jan'13 YTD AUS - Jan'13 YTD 30 20 10 - New Units Service Hours Parts Revenue F & I Net Profit 8
Automotive and Logistics Division overview 900 Total South African Vehicle Market 800 700 600 500 400 300 200 100 0 2007 2008 2009 2010 2011 2012 2013F 2014F 2015F 2016F 2017F Passenger LCV M&HCV Source: Econometrix 9
Automotive and Logistics Division overview Motor retail Target operating margin and returns Continue to review brands and business mix in line with changing customer needs Entrench be the Best culture Continuous improvement and innovation of our vehicle disposal solutions 10
Car Rental Keith Rankin CE Car Rental
% Growth Automotive and Logistics Division overview Car Rental Improved rental days despite prior year Census impact Static revenue per day in a competitive environment impacted by higher replacement volumes (hail storm) Continued focus on operating costs Fleet utilisation impacted by hail damage Continued solid used vehicle profit contribution Coach charter integration progressing slowly Sustained customer satisfaction above 90% 15 Leading Indicators Jan '13YTD Sep '12 YTD 10 5 0-5 Rental Days Rate Per Day Fleet Utilisation Fleet Size 12
Automotive and Logistics Division overview Car rental AvisBudget Group Retain market leadership Focus on improving quality of the business: - Yield, fleet planning, acquisition, mix, utilisation, distribution and disposal Environmentally responsible corporate CSI >90% 13
Fleet Services Clive Else CE Avis Fleet Services
% Growth Automotive and Logistics Division overview Fleet Services Pleasing performance in low interest rate environment Strong financed fleet growth supported by Phakisaworld acquisition effective January 2012 Strong growth in fleets under maintenance Good used vehicle profits despite lower margins Intelligent Fuel Management enhances overall product offering Secured and renewed significant contracts 30 Leading Indicators Jan '13 YTD Sep '12 YTD 20 10 0 Maintenance Fleet Finance Fleet Total Fleet 15
Logistics Steve Ford CE Barloworld Logistics
Automotive and Logistics Division overview Logistics Good turnaround and positioned for growth Southern Africa - Ellerines supply chain contract now fully operational - Higher volumes through Barloworld Equipment - Recent corporate activity positions business for growth Europe, Middle East and Asia - Rationalisation and cost control taking effect, stabilising volumes in sea-air market - Appointed new local management in Spain and Far East, however difficult trading conditions persist - Progressing supply chain management activities in Dubai 17
Automotive and Logistics Division overview Logistics Build a significant integrated logistics business Organic growth through focused business development team Targeted acquisitive growth Settle recent acquisitions 18
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