Slide 1: Inchcape
Inchcape Preliminary results presentation • 6 March 2006 NOTES
Slide 2: André Lacroix, Group Chief Executive
André Lacroix Group Chief Executive NOTES
Slide 3: Operating review
Operating review NOTES
Slide 4: Australia
Australia • Market up by 3.5% on last year’s record with c. 988,000 units • Subaru market share at 3.6% • Expected strengthening of small and light car segment should benefit Subaru • Operating profit* £31.9m, up 13.5% • Record revenue for Distribution business • Melbourne Retail enjoyed strong orga
Slide 5: Belgium
Belgium • Market flat for the year, but better in second half • New vehicle volumes grew by 2.9%; market share increased to 5.0% • Operating profit* £14.0m, up 11.1% • Strong performance from parts business • New product range in 2006 includes Aygo, Yaris, RAV4 and Lexus IS • New flagship Lexus reta
Slide 6: Greece
Greece • Market down 6.2% • Toyota market share stabilised at 8.5% – Despite model run outs and supply shortages • Retail underperformed and recorded a loss • Operating profit* £13.8m, down 22.0% • New models in 2006 include Aygo, Yaris and RAV4 • 2006 turnaround plan in Retail * Before exceptional
Slide 7: Hong Kong
Hong Kong • Market impacted by slower economic recovery • Market share at 37.9% – Despite supply constraints and increased competition • Performance benefited from higher aftersales activity • Operating profit* £28.8m, up 12.5% • Improved margins of 11.9% compared to 10.8% in 2004 • Toyota/Lexus mod
Slide 8: Singapore
Singapore • Operating profit* £62.1m, up 16.1% • Record revenue and profits • Market up 11.0% to record levels • Market leadership with 31.0% share, marginally down on 2004 – Despite supply issues, discontinued Liteace van • Strong revenue increase driven by new car and aftersales performance • Net
Slide 9: United Kingdom
United Kingdom • Market down 5.0% • Strong year for Inchcape Retail with profits* up 41.9% – 10.0% like for like increase in used cars – Focus on operational excellence – Successful integration of recent acquisitions – Operating margin improvement • Inchcape Fleet Solutions benefited from new contra
Slide 10: Other
Other • Operating profit* £28.4m, up 6.4% • Double digit profit growth in Brunei, New Zealand, Latin America and Ethiopia • Balkans – Strong growth in operating profits, up 58.1% on last year – New retail centre in Bucharest in 2006 • Finland – Profitability declined due to loss of market share with
Slide 11: 2005 summary
2005 summary • Successful year showing strong profits growth and continued, cash generation • Double digit profit growth in five out of six core markets • Year on year margins saw slight improvement, despite some pressure in second half • Another record year of sales for Australia and Singapore • St
Slide 12: 2006 outlook
2006 outlook • Further strong year in Australia and UK • Belgium and Greece will benefit from launch of new Toyota/Lexus products • Hong Kong and Singapore will face challenging market conditions • Further successful year in our other markets, especially in the Balkans and Baltics Well placed to del
Slide 13: Strategic agenda: Initial thoughts
Strategic agenda: Initial thoughts NOTES
Slide 14: Initial observations
Initial observations ‘A terrific legacy’ • Tremendous strategic turnaround • Strong earnings growth in last five years • Excellent creation of shareholder value • High level of pride and energy in the business NOTES
Slide 15: Strategic assets
Strategic assets • Unique global business model • Geographical spread of earnings • Scale operational excellence • Strength of brand partnerships • Decentralised operating model
Slide 16: Strategic agenda: Summary
Strategic agenda: Summary 1 Vision: To be the world’s most customer centric automotive retail group Delivering: • Higher and more consistent business performance from existing assets • Higher market share and competitive retail advantage • Faster access to development of pipeline opportunities by be
Slide 17: Strategic agenda: Summary continued
Strategic agenda: Summary continued 1 Vision: To be the world’s most customer centric automotive retail group 2 Levers: Strengthen Expand Customer centric In existing, emerging operational excellence and new markets NOTES
Slide 18: Focus on customer centric operational excellence
Focus on customer centric Strengthen operational excellence • Continuous improvement of operational processes • Formalise transferable best practices • Constantly update insights on customer expectations • Lead innovation in retail and customer service • Sustainable sales and profits growth NOTES
Slide 19: Leading role in the emerging global consolidation process
Leading role in the emerging Expand global consolidation process • Expansion in existing, emerging and new markets • Developing scale operations in ten core markets • Building long term partnerships with leading brands: – Leveraging Toyota partnership - Europe, Russia, Asia – Building global partner
Slide 20: Major role in UK consolidation
Expand Major role in UK consolidation • £1.4bn revenues/ninety retail centres • Acquisition of twenty-four dealerships in past three years, all integrated well with incremental revenues of over £0.3bn • Quoted retail groups and manufacturers represent c. 15.0% of UK market • Continuing to look at ac
Slide 21: Entry into Russian market
Expand Entry into Russian market • Russian market offers strong, scale opportunities – Largest car market in Central and Eastern Europe, seeing rapid growth – Foreign brands increased sales by 61.0% in 2005 – Foreign brands’ market share forecast to rise from 38.0% in 2005 to over 50.0% in 2010 • Jo
Slide 22: Strategic agenda: Summary continued
Strategic agenda: Summary continued 1 Vision: To be the world’s most customer centric automotive retail group 2 Levers: Strengthen Expand Customer centric In existing, emerging operational excellence and new markets 3 Enablers: Build capability in people and systems Disciplined allocation of capital
Slide 23: Inchcape
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