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D’Ieteren. Jean-Pierre Bizet Group Executive Vice President Benoît Ghiot Group Financial Manager. May 2004. Car Rental. Automobile Distribution in Belgium. Vehicle Glass. Group Highlights. D’Ieteren’s portfolio of activities . Avis Europe # 1 Car rental group outside Americas

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slide1

D’Ieteren

Jean-Pierre Bizet

Group Executive Vice President

Benoît Ghiot

Group Financial Manager

May 2004

group highlights

Car

Rental

Automobile

Distribution in Belgium

Vehicle Glass

Group Highlights

D’Ieteren’s portfolio of activities

  • Avis Europe
  • # 1 Car rental group outside Americas
  • more than 110 countries - 4,000 locations
  • D’Ieteren Auto
  • #1 Car distributor in Belgium
  • 350 independent dealers
  • and 12 fully-owned dealers
  • Long term car rental : D’Ieteren Lease
  • Belron
  • #1 vehicle glass repair & replacement (VGRR) group worldwide
  • 27 countries - 1,000 stations- 3,500 mobile units
group highlights1

D’Ieteren family

Cobepa

30%

Free float

London S.E.

40,4%

59,6%

70%

Minority

shareholders

Dicobel

81.7%

18.3%

Avis Europe

Avis Europe

Belron

Group Highlights

Free float

Euronext Brussels

50.4%

41..5 %

7.1%

Own shares

D’Ieteren s.a.

1%

100%

D’Ieteren Auto

group highlights2

Avis Europe

D’Ieteren Auto

Belron

Group Highlights

Revenue 2003

EUR 4.1 billion

EBITA 2003

EUR 257 m

Net current earnings before minorities1

EUR 121 m

Net current earnings 1, group’s share 2003

EUR 84 m

1 before amortisation of consolidation differences and extraordinary results

d ieteren
D’Ieteren

Segment contribution to Group revenue

Consolidated Group revenue :

EUR 3.029,5 m (-1.2%)

Total segment revenues :

EUR 4.090,6 m (+1.0%)

Belron

EUR 1.061,1 m

Equity method

Avis Europe

EUR 1.169,4 m

Avis Europe

EUR 1.169,4 m

Fully consolidated

D’Ieteren Auto

EUR 1.860,1 m

D’Ieteren Auto

EUR 1.860,1 m

Fully consolidated

d ieteren1
D’Ieteren

Segment contribution to Group EBITA

Consolidated Group EBITA :

EUR 173.7 m (-27.4%)

Total segment EBITA :

EUR 256.6 m (-18.2%)

Belron

EUR 82.9 m

Equity method

Avis Europe

EUR 122.8 m

Avis Europe

EUR 122.8 m

Fully consolidated

D’Ieteren Auto

EUR 50.9 m

D’Ieteren Auto

EUR 50.9 m

Fully consolidated

d ieteren2
D’Ieteren

Segment contribution to current result after taxes 1

Vehicle glass 2

EUR 19.9 million

+ 26.8%

Automobile distribution 2

EUR 36.9 million

+ 3.7%

D’Ieteren shareholding : 56.65%

Consolidated current result after taxes 1 :

EUR 83.9 m, 20.8% lower

Car rental

EUR 27.1 million

- 50.4%

D’Ieteren shareholding : 59.60%

1 Share of the group, excluding amortisation of consolidation differences

2 After allocation of a financial result linked to D’Ieteren’s investment in vehicle glass

d ieteren3
D’Ieteren

2004 Outlook

“Based on the outlook for the three activities,

FY 2004 current result after taxes1, group’s share,

is expected to be slightly higher than in FY 2003.”

1 Before amortisation of consolidation differences

slide9

Agenda

Automobile Distribution with D’Ieteren Auto

d ieteren auto
D’Ieteren Auto

Market of new cars & D’Ieteren’s market share

Market (in thousand of units)

D’Ieteren’s marekt share (%)

d ieteren auto1
D’Ieteren Auto

Share of D’Ieteren Auto in Belgian new car registrations

New car registrations

FY 2003

H2 2003

H1 2003

FY 2002

New car market (in units)

458,796

262,023

196,773

467,569

D’Ieteren Auto total

17.8%

18.6%

17.1%

18.0%

Volkswagen

9.9%

10.3%

9.6%

10.0%

Audi

4.4%

4.4%

4.3%

4.3%

Seat

2.0%

2.3%

1.8%

2.2%

Skoda

1.4%

1.5%

1.3%

1.4%

Porsche

0.1%

0.1%

0.1%

0.1%

d ieteren auto2

EUR million 2003 2002 % change

New vehicles sold (units) 89,968 95,900 - 6.2%

Revenue 1,860.1 1,877.6 - 0.9%

Operating profit (EBITA) 50.9 52.8 - 3.6%

EBITA margin 2.7% 2.8%

Net financial result 1 - 4.3 - 8.8

Net extraordinary result 8.8 - -

Profit before taxes 55.4 44.0 + 25.9%

Current result after taxes1,2,g.s.36.9 35.6 + 3.7%

Current EPS (EUR) 1,2,g.s. 6.6 6.4 + 3.7%

D’Ieteren Auto

Results headlines

1 After allocation of a financial result after taxes associated with D’Ieteren’s investment

in the vehicle glass segment - see slide “Impact of Dicobel in D’Ieteren accounts” in vehicle glass section

2 Share of the group

d ieteren auto3
D’Ieteren Auto

Revenue : quasi flat, overall

  • Low performance of H1 nearly offset by sales increase of H2
  • Decrease of new and used vehicles mitigated by more stable other activities

Revenue breakdown by activity

Revenue evolution

3%

5%

2%

8%

10%

72%

d ieteren auto4
D’Ieteren Auto

Operating profit (EBITA)

- 11.2

+ 9.2

52.8

- 3.0

50.9

+ 3.1

Increase of marketing costs and fleet depreciation

Savings in overheads

d ieteren auto5
D’Ieteren Auto

Net result

  • Provision reversal IFRS : +10.9
  • Retail restructuration : - 5.5
  • Others : + 3.4

47.2

+ 1.5

+ 8.8

+ 4.5

- 0.9

- 0.2

- 0.2

36.9

35.6

- 1.9

  • Favourable impact of :
  • interest rates
  • valuation of own shares
d ieteren auto6
D’Ieteren Auto

Achievements in 2003

  • Networks development
  • New contrats concluded with dealers in line with European distribution regulation
  • and the specialisation by make
  • D’Ieteren Brussels agencies
  • Launch of a competitiveness improvement programme to improve profitability, service quality and to split the VW and Audi brands
  • New investment : AUDI CENTER in Zaventem
d ieteren auto7
D’Ieteren Auto

Outlook for 2004

  • FY 2004 Registrations
  • 470,000 new car registrations expected, + 3%
  • Expected D’Ieteren share close to 19%
  • Revenue
  • Expected increase of around 10% in new vehicles sales
  • New product launches :
  • VW Caddy (Apr 04), Audi A6 (May 04), Seat Altea (Sept 04), Skoda Octavia (Sept 04), AudiA3 5 doors(Sept 04), Seat Toledo (Nov 04),VW Passat (Jan 05)
  • Costs
  • High marketing costs & promotional actions in a stillcompetitive environment
  • Continuing intensive focus on overheads
slide19

Agenda

Short Term Car Rental

slide20
Corporately-owned operations

Some 5 million rentals annually

14 countries, c.1750 locations

Presence at the 75 principal

European airports

Fleet purchases of

c.EUR 2.5 billion per year

Licensee network

93 countries – c.1250 locations

Avis EAMEA

slide21
65 countries

Over 1,000 locations

predominately franchisee

Budget EMEA

car rental with
Overall performance significantly impacted by Iraq conflict and weaker pricing environment

Current result, in line with guidance given in 2003

Overall volume and yield improvement in H2

Acquisition and integration of Budget and French licensee

Strong control of costs and focus on margin improvement projects

Significant extraordinary charges primarily following exit from Centrus

Car Rental with

2003 Results overview

car rental with1

EUR million 2003 2002 % change

Revenue 1,169.4 1,189.2 - 1.7%

Operating profit (EBITA) 122.8 186.5 - 34.2%

EBITA margin 10.5% 15.7%

Net financial result 1 - 62.8 - 63.1

Net extraordinary result - 102.4 - 16.4

Result before taxes - 73.3 76.9

Current result after taxes 1,g.s. 27.1 54.6 - 50.4%

Current EPS (EUR) 1,g.s. 4.8 9.8 - 50.4%

Car Rental with

2003 Results headlines

Note: the average shareholding used for the consolidation of Avis Europe is 59.60% compared with 56.78% in 2002.

1 Before amortisation of consolidation differences

slide24

Car Rental with

Underlying margin movement

Revenue

Operating

profit

Operatingmargin %

EUR million

1,154

40

- 57

1,137

189

16

- 48

- 33

4

9

- 2

135

16.3

0.8

- 3.4

- 2.9

0.4

0.8

- 0.2

11.9

2002

Revenue

- Volume up 3.4%

- Revenue per day down 4.8%

Cost

- Inflation

- Utilisation

- Productivity

- Projects

2003 underlying

car rental with2
Car Rental with

Key Operating trends

Utilisation up 0.9% Productivity up 3.3%

Fleet

Staff

70

68.7

830.3

850

68.5

817.9

804.0

68.1

68

800

66

750

64

700

Rentals per FTE

Utilisation %

62

650

60

600

58

550

500

56

Utilisation

Productivity

Includes French licensee acquisition

slide26
Centrus

Software project

Impairment on earlier acquisitions (Holland, Münster)

Budget

VAT repayment incl. interest

Other

Car Rental with

Net extraordinary charge

Consolidation

differences

Other

Total

EUR million

  • 31.8 38.5 70.3
  • - 14.0 14.0
  • 13.8 - 13.8
  • - 4.4 4.4
  • - - 7.2 - 7.2
  • 0.3 6.8 7.1
  • 45.9 56.5 102.4

Net extraordinary charge before taxes

Tax impact - 9.9

Net extraordinary charge after taxes 92.5

Share of D’Ieteren (59.60%) 55.1

slide27
Optimisation of yield per car month

Weekly pricing review

Same process in each country

Yield management tools

Local empowerment

Development of internet channel

Net yield enhanced through lower distribution cost

Investment in improved functionality and on-line marketing

Year-on-year growth of 62%

Internet now 14% of reservations; UK 25%

Corporate customer initiatives with share benefits

Car Rental with

Yield management

slide28

Car Rental with

Investment for margin improvement

  • Finance centralisation
    • Shared service center opened in Budapest
    • Pilots in Germany and Belgium
    • European roll-out complete 2005
  • IT restructuring
    • Project to reduce IT support cost and increase flexibility
    • Pan-European agreement with Unysis to outsource infrastructure and support
    • Implementation complete end 2005
slide29

Car Rental with

Investment for 1% point margin improvement by 2006

EUR 78 m spend over 4 years

2003

2004

2005

2006

EUR million

Exceptional costs

Capital Expenditure

slide30

Car Rental with

2004 Outlook

  • No significant recovery in demand
  • Yield environment remains competitive
  • Refocused on core rental business
  • Investment for future growth and development
  • Budget RAC turnaround taking longer; however, broadly flat operating performance expected in the rest of the Group
slide31

Agenda

Vehicle Glass with Belron

slide32

Business summary

  • The world’s largest specialist vehicle glass repair and replacement (VGRR) company – operating in 27 countries, across 4 continents
  • No. 1 specialist in all its markets
  • Own internal distribution operations to support purchasing, warehousing and delivery
  • Growing geographic coverage - 15 new markets since 1999
  • Solid financial performance with steady growth in revenue, EBIT, and cash flow over the last 3 years
2 the global agrr market
2. The global AGRR market*

Continuing growth opportunities

VGRR potential in accessed markets

21.5m jobs

Worldwide Vehicle Parc

834m units

Vehicle parc

in markets

where Belron

operates

250m units

Belron share

21%

Based on 2003 market and data

slide34

Clear strategy

Acquisition

New Markets

Franchising

Brand

Sales Growth

Key Accounts

Share Growth

Service Innovation

New Opportunities

Strategic Initiatives

Profitable Growth

Exec Development

Leveraging Fixed Costs

Business Unit

Productivity

IT Systems

Efficiencies

Standardisation

Supply Chain

Support from Centre

slide35

Vehicle glass with

2003 Results overview

  • Revenue exceeded the EUR 1 billion mark for the first time
  • Strong revenue growth despite adverse exchange rates
  • Double-digit growth in operating profit
  • 4 new markets added with a presence in 27 countries across 4 continents
slide36

Vehicle glass with

2003 Results headlines

EUR million 2003 2002 % change

Total jobs (in million units) 4.7 4.1 + 14.6%

Revenue 1,061.1 981.4 + 8.1%

Operating profit (EBITA) 82.9 74.6 + 11.1%

EBITA margin 7.8% 7.6%

Net financial result - 30.2 - 32.7

Net extraordinary result - 6.3 2.8

Profit before taxes 23.7 21.6 + 9.7%

Current result after taxes 1,31.2 24.3 + 28.4%

Dicobel’s share

1 Share of Dicobel, before amortisation of consolidation differences

The average shareholding used for the consolidation of Belron is 80.93% as in 2002

slide37

Vehicle glass with

Revenue

1,061.1

+ 32.2

+ 79.2

981.4

- 31.7

+ 3.3%

- 3.2%

+ 8.1%

Italy, Sweden, Norway, Brazil

slide38

Vehicle glass with

Revenue by geography

  • Growth1 above 10% in UK and France
  • Growth1 above 25% in high potential markets such as Spain and Portugal
  • Turbulent market conditions in Canada

Geographical revenue breakdown2

Revenue evolution 2(EUR million)

  • Europe + 10%
  • France Germany
  • UK Ireland
  • Netherlands Belgium
  • Spain Italy
  • Portugal Switzerland
  • Luxembourg Denmark
  • Sweden Norway
  • Rest of the world +1%
  • Canada New Zealand
  • Australia Brazil

Rest of the world

18%

Europe

82%

1 at constant FX

2 at actual FX

slide39

Vehicle glass with

Operating profit (EBITA)

+9.5

-13.6

+37.1

-6.0

-19.9

82.9

+2.6

74.6

-1.4

10 additional branches

Purchasing and productivity

  • Includes:
  • - IT costs
  • Call centres
  • Head offices
slide40

Vehicle glass with

Growing geographic coverage

  • Franchise agreements in Poland, Serbia Montenegro
  • Total Belron franchised countries today : 9
  • New subsidiary in Norway (Jul 03)
    • Acquisition of Norway’s largest vehicle glass company
    • Revenue of EUR 6.5 m in 2002 in vehicle parc of over 2.5 m vehicles
  • Enhancing Belron’s Scandinavian coverage
  • Re-entry into Brazil (Sep 03)
    • Joint venture with local business partners
    • Revenue of EUR 11.2 m in 2002
    • Brazilian vehicle parc of over 20 m vehicles
  • New branches in Italy (03/2004)
    • 29 branches acquired from former competitor GlassPoint + 20 franchisees added, bringing total network in Italy to 80 owned + 40 franchisees
slide41

Vehicle glass with

Growing geographic coverage : 15 new markets since 1999

2000 : Switzerland, Greece

2001 : Denmark, Turkey, Slovenia, Croatia, Bosnia

2002 : Sweden, Italy, Czech Rep., Israel

2003 : Norway, Brazil, Poland, Serbia-Montenegro

slide42

Vehicle glass with

2004 Outlook

  • Revenue growth driven by
    • Organic sales, marketing & customer service
    • Geographic expansion
    • New business initiatives
  • Restructuring plans for Canada and Australia ongoing
  • Continued focus on margin and productivity gains
  • Revised timetable for implementation of new IT platform, due to significant delays incurred in development
d ieteren auto8
D'Ieteren Auto

Appendix A : P&L account of D’Ieteren Auto

EUR million

* share of the group

d ieteren auto9
D'Ieteren Auto

Appendix B :

Reconciliation Net result vs. Current result after taxes

2003

2002

EUR million

slide46

Car Rental with

Appendix C : Avis Europe P&L (as reported by D ’Ieteren)

EUR million

slide47

Car Rental with

Appendix D :

Reconciliation Net result vs. Current result after taxes

2003

2002

EUR million

* Average shareholding %age : 59.60% in 2003 ; 56.78% in 2002.

Closing shareholding %age : 59.59% in 2003.

slide48

Vehicle glass with

Appendix E : P&L account of Belron

EUR million

slide49

Amortisation of consol. diff.

Current result after taxes, before

amortisation of consol. diff.

Vehicle glass with

Appendix F :

Reconciliation Net result vs. Current result after taxes

EUR million

d ieteren4
D’Ieteren

Financial Communication

T. : + 32 2 536 54 39

F. : + 32 2 536 91 39

e-mail : financial.communication@dieteren.be

www.dieteren.com

slide51

FORWARD LOOKING STATEMENT

“To the extent that any statements made in this presentation contain information that is not historical, these statements are essentially forward-looking. The achievement of forward-looking statements contained in this presentation is subject to risks and uncertainties because of a number of factors, including general economic factors, interest rate and foreign currency exchange rate fluctuations; changing market conditions, product competition, the nature of product development, impact of acquisitions and divestitures, restructurings, products withdrawals; regulatory approval processes and other unusual items. Consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements can be identified by the use of words such as "expects," "plans," "will," "believes," "may," "could" "estimates," "intends", "targets", "objectives", "potential", and other words of similar meaning. Should known or unknown risks or uncertainties materialize, or should our assumptions prove inaccurate, actual results could vary materially from those anticipated. The Company undertakes no obligation to publicly update any forward-looking statements"