Download
slide1 n.
Skip this Video
Loading SlideShow in 5 Seconds..
D’Ieteren PowerPoint Presentation
Download Presentation
D’Ieteren

D’Ieteren

247 Views Download Presentation
Download Presentation

D’Ieteren

- - - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

  1. D’Ieteren Jean-Pierre Bizet Group Executive Vice President Benoît Ghiot Group Financial Manager May 2004

  2. 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

  3. 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

  4. 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

  5. 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

  6. 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

  7. 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

  8. 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

  9. Agenda Automobile Distribution with D’Ieteren Auto

  10. D’Ieteren Auto Market of new cars & D’Ieteren’s market share Market (in thousand of units) D’Ieteren’s marekt share (%)

  11. 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%

  12. 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

  13. 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%

  14. 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

  15. 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

  16. 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

  17. NEW AUDI CENTER

  18. 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

  19. Agenda Short Term Car Rental

  20. 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

  21. 65 countries Over 1,000 locations predominately franchisee Budget EMEA

  22. 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

  23. 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

  24. 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

  25. 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

  26. 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

  27. 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

  28. 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

  29. 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

  30. 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

  31. Agenda Vehicle Glass with Belron

  32. 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

  33. 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

  34. 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

  35. 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

  36. 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

  37. 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

  38. 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

  39. 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

  40. 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

  41. 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

  42. 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

  43. Appendices

  44. D'Ieteren Auto Appendix A : P&L account of D’Ieteren Auto EUR million * share of the group

  45. D'Ieteren Auto Appendix B : Reconciliation Net result vs. Current result after taxes 2003 2002 EUR million

  46. Car Rental with Appendix C : Avis Europe P&L (as reported by D ’Ieteren) EUR million

  47. 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.

  48. Vehicle glass with Appendix E : P&L account of Belron EUR million

  49. 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

  50. 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