Imperial Logistics — Corporate Update (March 2014)
24 slides from Imperial Logistics's corporate update, Mar 18, 2014
Slide 1: Analyst Presentation Midas Group
ANALYST PRESENTATION MIDAS GROUP 18th MARCH 2014
Slide 2: Agenda
Agenda AGENDA • BRIEF HISTORY • BUSINESS MODEL • DEFINE MARKET • ROUTE TO MARKET • BRANDS • MARKET STRENGTHS • STRATEGIC INITIATIVES • SUSTAINABILITY PROGRAMMES 1
Slide 3: Brief History
BRIEF HISTORY Agenda • Alex Cruikshank founded Auto Electrical Repair business in 1954 • Changed to wholesale in 1958 • Name changed to Motolek 1968 • Napa formed in 1973 • Midas Franchise in 1983 • Leveraged Buyout 2002 • Imperial Invested November 2009 MIDAS GROUP (PTY) LIMITED IMPERIAL HOLDINGS F
Slide 4: Business Model
BUSINESS MODEL Agenda Franchises Geribran Afintapart 30% Stake 80% Stake R1.1B pa R2.4 B pa $40m pa R80m pa +- 110 Members 9 Warehouses 50 Local Autocycle Centre Suppliers Drop Shipment 50% Members CVD 50% Independents On-Site Fleet R 2.3 Bn from “Family” Supply 3
Slide 5: Napa: Unique Mechanism
Agenda • Unique Mechanism • Bulk Buying and Marketing Organization • Local Product (No Direct Imports) • No Warehousing only Drop Shipment • Approximately 110 Members and 50 Vendors • Separate entity with Brokerage to Midas and profit to the Members • Independent Board constituted 50% by Membership
Slide 6: Afintapart Warehouse Locations
Agenda Afintapart Heavy Duty Auto Cycle Afintapart Afintapart Auto Cycle Auto Cycle Afintapart Afintapart Afintapart 1) Bloemfontein 4) East London 7) Nelspruit 2) Cape Town 5) George 8) Port Elizabeth 3) Durban 6) Johannesburg 9) Pretoria 5
Slide 7: Warehousing Facts
Agenda FACTS WAREHOUSING • Space Sq./m 58 000 • Staff 480 • Delivery Vehicles 170 • Million Kms p.a. 8 • Invoices per day >16 500 6
Slide 8: Bouquet of Franchises
BOUQUET OF FRANCHISES Agenda Franchise SA Owned Non SA TOTAL 264 20 39 303 12 12 31 4 35 51 3 54 53 2 55 20 3 23 39 1 40 Total 458 20 64 522 7
Slide 9: Franchise Concepts
FRANCHISE CONCEPTS Agenda • 64 Franchises outside SA • > 40% Non White Owned • Non Profit Division • Fosters Loyalty and Support • Geographic protection, provided market penetration, Leadership and Group Support • Leading Midas Franchisees are Napa Members • Managed through: • National Councils • Re
Slide 10: Geribran
GERIBRAN Agenda • Central Warehouse in Harare • Trades through 12 Transerv and 4 Midas Outlets servicing Workshops and the Consumer Market • Owns 4 Workshops • Wholesale Business on decline • Predominantly Cash • US$ liquidity severely impacting Market • Largest footprint, widest range, good availab
Slide 11: Automotive Aftermarket
Agenda AUTOMOTIVE AFTERMARKET Defined as …… 10
Slide 12: Vehicle Parc
VEHICLE PARC Agenda Midas Market 11
Slide 13: Parts Consumption by Vehicle Age
PARTS CONSUMPTION Agenda BY VEHICLE AGE PARTS CONSUMPTION Rands consumed per Vehicle Midas Market House Brands Global Brands OES Age of Vehicle 12
Slide 14: Ageing Vehicle Population
AGEING VEHICLE AgendaPOPULATION Vehicle population Vehicle Parc and Age 12 16 – Officially - 8.5 million Millions 14 – “Phantom” - 0.8 million 10 12 – TOTAL - 9.3 million 8 Vehicles on The Road 10 Average Age – Grown from 7.7 million in 6 8 2007 (Growing at > GDP) 6 4 PARC AGE OF VEHICLES – Projecte
Slide 15: Workshop Market: Observations
WORKSHOP MARKET : Agenda OBSERVATIONS Wide Spectrum Of Customers • Euro-centric • Professional • High Investment in • Afro-centric • Equipment • Subsistence • Premises • No or Little Investment • People/Skills • Training? • Technology and Skills • Limited Formal Skills Both Segments are Growing • Li
Slide 16: Route to Market
ROUTE TO MARKET Supplier / Local Agenda Supplier / Offshore Manufacturing National Wholesaler Regional Wholesale Distribution Wholesaler Retailer Retail Workshop Do it for Me Fitment / Installer DIY Consumer Consumer 15
Slide 17: World Class Brands
WORLDAgenda CLASS BRANDS 16
Slide 18: House Brands
HOUSE BRANDS Agenda • House Brand Revenue is approximately 26% of PIA Hard Parts Electrical & HD Linings Oil, Chemicals, Tools & Accessories Tools & Accessories Tents etc. • Excludes Fishing Brands 17
Slide 19: Market Strengths
MARKET STRENGTHS Agenda • Part of Imperial • Midas Name • Napa a unique Mechanism • Shareholder in ATR – International Buying group • Bouquet of Franchise Concepts • Critical Mass and Footprint • Product Range • Membership Support (Shareholder) • BBBEE Rating 3 • Technica • Developing a technical Di
Slide 20: Strategic Initiatives
STRATEGIC INITIATIVES Agenda • Expansion into Africa • Franchise Growth across all Franchises • Workshop Market Penetration • Formal • Informal • Commercial Vehicle Market • Afintapart - Acquired in Sept 2012 • TTC – On site Distribution (from 1 Aug 2013) • Brand Focus • Global • Value • Niche Type
Slide 21: Africa Focus
AFRICA FOCUS Agenda Sub-Saharan Africa ADCO • Actively growing customer base in East Africa and Mozambique • Support Delphi and Denso product throughout Sub- Saharan Africa • 10% of Sales and growing 20
Slide 22: Johannesburg Distribution
JOHANNESBURG Agenda DISTRIBUTION • New Facility Housing: • Head Office JANUARY • Napa Franchise and Marketing 2015 • Regional and National Distribution 21
Slide 23: Sustainability Programmes
SUSTAINABILITY AgendaPROGRAMMES SOCIAL RESPONSIBILITY TRAINING AND DEVELOPMENT • School Upliftment and • ABET Empowerment • Skills Development • 6 Schools • Technica • R2m per annum • Learnerships 2010 • Leadership Programme 2013 GREEN INITIATIVES • Supervisory Programme 2014 • Carbon Emissions • Wa
Slide 24: Thank You
WE ARE . IMPERIAL Y ss