Imperial Logistics — Corporate Update (March 2014)
48 slides from Imperial Logistics's corporate update, Mar 18, 2014
Slide 1: LiquidCapital in Perspective
LiquidCapital in Perspective 1
Slide 2: Agenda
Agenda - LiquidCapital corporate video - Our business in quantum - What we do - Key financial indicators - Questions 2
Slide 3: Business in quantum
Business in quantum 3
Slide 4: Our Business
Our Business - We offer a broad range of financial products and services to the motor industry, corporate customers, leasing ventures and the South African motoring public - We are a registered Financial Services Provider - We are a level 3 BEE contributor 4
Slide 5: Our Business in Quantum
Our Business in Quantum - We are the largest provider of branded financial services solutions in the motor industry - We are believed to be the 2nd largest provider of contract maintenance in the country - We provide a range of vehicle products and services for over 13 international motor brands rep
Slide 6: Our Business in Quantum
Our Business in Quantum - We have over 560,000 active customers on our books - We manage over 1,072,000 policies (active and future active) - We administer and manage a fleet of over 11,000 vehicles - We receive and make more than 110,000 in and outbound calls per month - We also make more than 100,
Slide 7: Our Credo
ie Our Credo LIQUIDCAPITAL COVERED. LIQUIDCAPITAL
Slide 8: What we do?
What we do? 8
Slide 9: The Motor Industry Financial Services Model
The Motor Industry Financial Services Model 9
Slide 10: Finance
Finance Strategy ! Alliances - MFC and WesBank ! Liquid Vehicle Finance (a joint initiative between LiquidCapital and WesBank) launched 2009 ! Branded finance solutions Finance and Insurance Management Solutions (FAIMS) ! Over 180 F&I Business Managers ! Solution tailored for over 350 dealer outlets
Slide 11: Value added vehicle products
Value added vehicle products - Contract maintenance - Other insurance products - Service Plans and Maintenance Plans - Paint protection, deposit cover & gap cover - Vehicle profiling & plan pricing - Quoting calculator - Roadside assistance & accident - Authorisations/Claims management - Believed to
Slide 12: Product White Labeling
Finance Insurance Customer / CRM Portal Support Services Fleet Management CAPITAL ERVICE PLAN | MAINTENANCE PLAN | EXTENDED WARRANTY | ROADSIDE ASSI:
Slide 13: Branded Fulfilment
Branded Fulfilment Branded fulfilment – founda0on to launch customer communica0on journey Hyundai Kia LiquidCapital Mitsubishi Triumph Kawasaki 13
Slide 14: Insurance
Insurance - Insurance aggregator business - Support all AMH dealerships - Support all Imperial Automotive Retail dealerships - Sell direct to consumer - Comprehensive insurance quotes - On vehicle, motorcycle & household - Panel of insurance providers - Tracking devices offered - Integration into ac
Slide 15: Accident Management
Accident Management Customer obtains insurance Customer has accident Tracking device give through Liquid Insurance notification of accident Quotes Approved panel beaters only Tow truck delivers vehicle to Liquid Roadside dispatch use OEM parts our approved panel beater tow truck to collect vehicle 1
Slide 16: Customer Life Cycle
Customer Life Cycle Customer takes delivery of vehicle Retention / churn campaigns Sales CSI survey and data hygiene Customer Telesales relationship initiatives communication After – sales Service and maintenance surveys plan authorizations 16
Slide 17: One View Of Customer
One View Of Customer -‐ Advanced data warehousing and business intelligence solu0on, ensure -‐ -‐ Enhanced data quality of customer and vehicle informa0on -‐ Enhanced business insight and customer centricity -‐ Ability to profile and predict behaviour of motoring customers Automated Direct Marke
Slide 18: Data Warehouse
Data Warehouse Gender/Age Business intelligence - Vehicle, customer & fleet behaviour - Provide enhanced ability for analysis and repor0ng Customer Age Gender Marital Status/Gender 18
Slide 19: Customer Journey
Customer Journey LEGEND Customer Journey LIQUIDCAPITA Finance Insurance Customer / CRM Portal Support Services Fleet Management Ws ey am AL SERVICE PLAN | MAINTENANCE PLAN | EXTENDED WARRANTY | ROADSIDE ASSISTANCE | CAR INSURANCE PRODUCTS & QUOTES LIQUIDCAPIT
Slide 20: Customer Experience Management
Customer Experience Management -‐ Exceeding customer expectaEons CUSTOMER COMMUNICATION -‐ ImplemenEng “tomorrow’s technology” via -‐ Responsive website & email designs -‐ Customer apps -‐ Automated customer communicaEon PC WEBSITE TABLET MOBILE APP MOBILE 20
Slide 21: Responsive Design Website
Responsive Design Website - Responsive CSS Framework - Multiple browser and device compatibility - Sophisticated coding employed to support cross device functionality 21
Slide 22: Google Partnership
Google Partnership - Relationship with Google, which allow - testing various beta products - as soon as they are available - Dedicated test account in which we are currently testing: - different display targeting combinations - remarketing lists for search ads 22
Slide 23: Website Tracking
Website Tracking - Monitoring of – - Active customers - Website activity - Demographics (age/gender) 23
Slide 24: Analytics Tracking
Analytics Tracking - Website visitors by geographic area 24
Slide 25: Email Automation
Email Automation - Tracking - Opening Rates - Link Tracking via Heat maps 25
Slide 26: Email Automation
Email Automation Inbox analytics: Inbox analytics: Engagement Rates Email Clients used - Read to read emails - Skimmed - Glanced/ Deleted 26
Slide 27: Mobile app
Mobile app - Customer raise request for roadside assistance through app - App automatically identifies the customer’s geo location and communicates to call centre - Various services offered – - Roadside services - Route map assistance - Accident logger 27
Slide 28: CSI
CSI Research - Customer satisfaction – sales, service and data hygiene - Call centre specialising in - Sales CSI - Aftersales CSI - Parts surveys - Other ad hoc surveys - CATI (by NIPO) “Computer Assisted Telephonic Interviewing” software used – similar platform used as leading research houses (i.e.
Slide 29: Other Support Services
Other Support Services - Customer care - Website hosting and support - Marketing material - Training - Compliance, validations & quality control 29
Slide 30: Fleet Management
Fleet Management Products & services offered: - Leasing & rentals - Fines management - Vehicle licensing & registration - Accident management - Roadside assistance - Managed maintenance - General vehicle maintenance, tyres, glass, etc 30
Slide 31: Fleet Management
Fleet Management Ability to manage diverse fleet ranging from: - Passenger vehicles - Light commercial vehicles - Heavy commercial vehicles - Forklifts - Armoured vehicles 31
Slide 32: Fleet Management - Clients
Fleet Management - Clients Some of our clients: 32
Slide 33: Our Roadmap
Our Roadmap Service & Ariva Maintenance Plans Roadside Assistance Direct Liquid Vehicle Marketing MFC JV Finance CSI 360PLUS Demo Plan LiquidCover Telesales IFM 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 33
Slide 34: Key financial indicators
Key financial indicators 34
Slide 35: Funds Under Management
Funds Under Management 2014 H1 FUNDS 2009 2010 2011 2012 2013 Funds under management - LiquidCapital Base +29% +45% +37%* +26% +7% Funds under management – Base +203% +2% +25% - +10% Cell Captive (after dividends) GROWTH Base +38.4% +37.0% +36.0% +22.5% +7.0% * Change in estimate in respect of reven
Slide 36: Forex Exposure
Forex Exposure - Only a portion of the funds under management are exposed to currency fluctuations - Forex exposure is managed through: - Changes to assumptions in the actuarial valuation model - Re-pricing of plans - Ongoing negotiations around parts pricing 36
Slide 37: Revenue Income Contribution
Revenue Income Contribution - Revenue analysis for the half year ended Dec 2013 3% 2% 1% 4% 8% 42% 21% 19% Fund revenue Fleet Services Motor Finance Alliances Cell Captive Liquid Direct Liquid Cover Liquid CSI Tracking Devices 37
Slide 38: Finance Alliance Books
Finance Alliance Books 2009 2010 2011 2012 2013 2014 H1 BOOKS R’m R’m R’m R’m R’m R’m TOTAL 8 975 7 316 10 287 14 499 18 795 21 663 GROWTH -18% +41% +41% +30% +15% R25 000 000,00 R20 000 000,00 R15 000 000,00 R10 000 000,00 R5 000 000,00 R- 2 009 2 010 2 011 2 012 2 013 2013 (YTD Dec) 38
Slide 39: Telesales
Telesales - Total Monthly Telesales increased by 303% over last 5 years 4500 4000 3500 3000 2500 2000 1500 1000 500 Dec-2009 Jun-2010 Dec-2010 Jun-2011 Dec-2011 Jun-2012 Dec-2012 Jun-2013 Dec-2013 Total Monthly Sales Linear (Total Monthly Sales) 39
Slide 40: Direct Marketing
Direct Marketing - Growth in direct marketing 1200 4000 3500 1000 3000 800 2500 600 2000 1500 400 1000 200 500 0 0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb 2012 2013 2014 Leads Sales Actual 40
Slide 41: AMH Dealership Sales
AMH Dealership Sales Total AMH vehicle sales vs Total value added product (VAP) sales in AMH dealerships 14000 12000 10000 8000 6000 4000 2000 0 Jan-2009 Jul-2009 Jan-2010 Jul-2010 Jan-2011 Jul-2011 Jan-2012 Jul-2012 Jan-2013 Jul-2013 Jan-2014 Total Vehicle Sales Total VAP Sales 41
Slide 42: Independent Dealership Sales
Independent Dealership Sales Total value added product (VAP) sales in Independent dealerships - Focus: Service & Maintenance Plans, Extended Warranties 1600 1400 1200 1000 800 600 400 200 0 Jan-2010 Jul-2010 Jan-2011 Jul-2011 Jan-2012 Jul-2012 Jan-2013 Jul-2013 Jan-2014 Total VAP Sales Linear (Total
Slide 43: Sustainability Of Earnings
Sustainability Of Earnings Average contract duration increased from 2.92 years to 4.25 years Average term of vehicle on book increased from 15 months to 21 months (last 7 years) 55 22 50 20 45 18 Months 40 16 35 14 30 12 25 10 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Average contract duratio
Slide 44: Sustainability Begins at Home
Sustainability Begins at Home - Outstanding customer service is central to our business - Our employees are the key differentiator in achieving superior business results - LiquidCapital invest in training and upskilling our people - Employee wellness program - LiquidCapital ensures compliance with a
Slide 45: BCG Matrix - Products
BCG Matrix - Products Tyre & Roadside Market Growth Rate Service Plan Rim Assistance High Plus Warranty Tyre Maintenance PlaEnum Plan Plus Low Service and Maintenance Plans Warranty Low Market Share High 45
Slide 46: BCG Matrix - Channel
BCG Matrix - Channel Direct MarkeEng Market Growth Rate 360PLUS Telesales High Website Branded Non-‐Motor Independent Financial Dealer floor Services Low Pre-‐paid (wholesale) AMH Dealer Floor Low Market Share High 46
Slide 47: Conclusion
Conclusion - Business well positioned for growth - Diversification of revenue streams - Development of new sales channels - Investment in technology, innovation and entrepreneurship - Aggressive management of business risks - Leveraging efficiencies throughout the business and the Group 47
Slide 48: Thank you
48 LIQUIDCAPITAL