Enx Group Limited · JSE:ENX
Enx — Eqstra Fleet Management and Logistics (EFML) — Investor Presentation (June 2017)
18 slides from Enx's investor presentation, June 2017
Slide 1: Eqstra Fleet Management and Logistics
Eqstra Fleet Management and Logistics 0
Slide 2: Leading Asset Management Solutions Provider
Leading Asset Management Solutions Provider EFML provides a full spectrum of passenger vehicle services including leasing, fleet management, insurance, outsourcing solutions, maintenance, warranty management and vehicle tracking solutions. It also provides fleet management and logistics solutions fo
Slide 3: History of EFML
History of EFML 1984 – Hertz Leasing founded 1988 – Acquisition by Imperial and renamed Prime Car Leasing 1993 - 1996 – Introduction of Managed Maintenance and Accident Management products into SA Market 2004 – Acquisition of Clover SA Transport Business 2008 – Eqstra unbundled from Imperial Group a
Slide 4: What Makes us Different?
What Makes us Different? Key Differentiators 1. Quest ERP System 2. Integrated Value-added Services allows business to provide an end to end solution 3. Independence from banks allows for flexibility and additional source of credit for customers 4. Supported by a nationwide network of workshops and
Slide 5: Our Value Proposition
Our Value Proposition Services offered Scope of management Services A single point of access to the full range of fleet solutions across all vehicle classes Scope of services EFM support all vehicle classes including specialised equipment and sub devices (cranes, tail lifts etc.) Data in context Hav
Slide 6: Market Dynamics in the Products We Offer
Market Dynamics in the Products We Offer Quest system elements Quest system elements Quest solutions Quest developed in Microsoft AX 2012 using the full suite of MS products Quest solutions Quest provides management solutions for fleet, insurance, maintenance, tracking, fuel, roadside assistance and
Slide 7: Key Customers
Key Customers CONSUMER GOODS BASIC FOODS EQUIPMENT OEMs ICT GENERAL 6
Slide 8: Revenue from Top Customers
Revenue from Top 10 Customers Revenue from Top 10 Customers 22% Earnings from Top 10 Customers Rest 78% 7
Slide 9: Industry trends that drive Revenues
Industry trends that drive Revenues 1. Increased outsourcing awareness on the back of global trends 2. Integrated services and reporting on all cost drivers relating to fleet management 3. Change in IFRS 4. Capital constraints due to economic pressures leading to long vehicle lifecycles 5. Requireme
Slide 10: Business Strengths
Business Strengths 1. Annuity revenues 2. Diversified customer base 3. Leading market position 4. Global leader in Leasing Information Technology 5. Full suite of leasing products 6. Scale gives purchasing power 7. Scaleable model 8. Long history of profitability 9
Slide 11: Competitor Set
Competitor Set Product Offering Key Competitors Fleet Management Companies Banks OPR / Fleet Services Emerging B-BBEE entities Tracking Tracking System Companies Vehicle Recovery Specialists Insurance & Accident Roadside Assistance Providers Insurance Companies Management Value Added Products Specia
Slide 12: Business Model
Business Model Key Partners Key Activities Unique Value Customer Customer Segments • OEMs • FMR Proposition Relationship • OEMs • Supply Chain • Fleet Services • Single point of • Measurable SLA • Dealership Groups • Financial • Vehicle Tracking access to full range • Measurable ROI • Blue Chip Inst
Slide 13: Cash Flow Cycle – Leasing and VAPs
Cash Flow Cycle – Leasing and VAPs Monthly inflows: Leasing VAPs Dealer Rebates - Rental income - Admin fees - OEM/Dealer rebates - Subscription fees - Fuel Rebill Income Cash inflows - Deferred Maintenance Revenue - Accident Management Rebill Income Cash inflows Cash inflows Cash inflows Lease Ince
Slide 14: Accounting Treatment
Accounting Treatment KEY INCOME COMPOSITION ACCOUNTING TREATMENT STATEMENT LINE ITEMS • Lease payments (which effectively include funding costs and • Lease payments are billed and received monthly in capital repayment) advance and recognized monthly over lease period • Disposal proceeds of used flee
Slide 15: Accounting Treatment
Accounting Treatment KEY BALANCE SHEET LINE ITEM ACCOUNTING TREATMENT Fleet vehicles Recognised at depreciated cost of leasing assets until disposed of • Net balance of maintenance revenues not yet recognised in the income statement to Deferred Revenue for Maintenance Reserve cover expenditure • Unr
Slide 16: Key Growth Strategies
Key Growth Strategies • Build out on capabilities 1. Optimise Quest • Develop “white label” solutions - car rental, fleet management, dealer management • Target brokers and insurance companies for claims admin 2. Grow valued added • Target high volume roadside assistance opportunities – employ indus
Slide 17: Key Growth Strategies
Key Growth Strategies 5. Develop a leading vehicle • Allow for total transaction transparency remarketing online portal • Limited competition apart from smaller private companies • Investigate viability of selling business process outsourcing (BPO) using existing business 6. Sale of document infrast
Slide 18: Thank You
Thank You FLEET MANAGEMENT & LOGISTICS
Eqstra Fleet Management and Logistics (EFML) — Investor Presentation (June 2017) on 6ix