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DIeteren May 2004 Jean-Pierre Bizet Group Executive Vice President Benoît Ghiot Group Financial Manager.

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Presentation on theme: "DIeteren May 2004 Jean-Pierre Bizet Group Executive Vice President Benoît Ghiot Group Financial Manager."— Presentation transcript:

1 DIeteren May 2004 Jean-Pierre Bizet Group Executive Vice President Benoît Ghiot Group Financial Manager

2 Group highlights 2003 results overview Automobile distribution - DIeteren Auto Car rental - Avis Europe plc Vehicle glass - Belron s.a. DIeteren Agenda

3 Group Highlights DIeteren

4 Group Highlights DIeterens portfolio of activities Automobile Distribution in Belgium Car Rental Belron #1 vehicle glass repair & replacement (VGRR) group worldwide 27 countries - 1,000 stations- 3,500 mobile units DIeteren Auto #1 Car distributor in Belgium 350 independent dealers and 12 fully-owned dealers Long term car rental : DIeteren Lease Avis Europe # 1 Car rental group outside Americas more than 110 countries - 4,000 locations Vehicle Glass

5 DIeteren s.a. DIeteren family DIeteren Auto Cobepa Free float Euronext Brussels 50.4% 7.1%41..5 % 100% Own shares 1% Avis Europe Free float London S.E. 59,6%40,4% Avis Europe Dicobel Belron Minority shareholders 70% 81.7% 18.3% 30% Group Highlights

6 Net current earnings 1, groups share 2003 Revenue 2003 EUR 4.1 billion EBITA 2003 EUR 257 m Avis EuropeDIeteren AutoBelron 1 before amortisation of consolidation differences and extraordinary results Net current earnings before minorities 1 EUR 121 m EUR 84 m

7 2003 results overview DIeteren

8 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%) DIeteren Auto EUR 1.860,1 m Avis Europe EUR 1.169,4 m DIeteren Auto EUR 1.860,1 m Avis Europe EUR 1.169,4 m Fully consolidated Equity method Belron EUR 1.061,1 m DIeteren

9 Segment contribution to Group EBITA Consolidated Group EBITA : EUR m (-27.4%) Total segment EBITA : EUR m (-18.2%) DIeteren Auto EUR 50.9 m Avis Europe EUR m Belron EUR 82.9 m DIeteren Auto EUR 50.9 m Avis Europe EUR m Fully consolidated Equity method DIeteren

10 Consolidated current result after taxes 1 : EUR 83.9 m, 20.8% lower Automobile distribution 2 EUR 36.9 million + 3.7% Car rental EUR 27.1 million % Vehicle glass 2 EUR 19.9 million % 1 Share of the group, excluding amortisation of consolidation differences 2 After allocation of a financial result linked to DIeterens investment in vehicle glass Segment contribution to current result after taxes 1 DIeteren shareholding : 59.60% DIeteren shareholding : 56.65% DIeteren

11 Net financial debt (including Belron) 1 After deduction of Avis Europe deposit for leases collateral (EUR 100,1m in 2003; EUR 85,1m in 2002) * Belron data exclude shareholders loans 2,025 1,138 2,173 1,986 1, ,756 1 Acquisition of Belron * * * DIeteren

12 2004 Outlook Based on the outlook for the three activities, FY 2004 current result after taxes 1, groups share, is expected to be slightly higher than in FY Before amortisation of consolidation differences DIeteren

13 Automobile Distribution with DIeteren Auto Agenda

14 Market of new cars & DIeterens market share DIeteren Auto Market (in thousand of units) DIeterens marekt share (%)

15 Share of DIeteren Auto in Belgian new car registrations Volkswagen Audi Seat Skoda Porsche FY 2003 FY % 4.3% 2.2% 1.4% 0.1% DIeteren Auto total18.0% 9.9% 4.4% 2.0% 1.4% 0.1% 17.8% New car registrations H % 4.3% 1.8% 1.3% 0.1% 17.1% H % 4.4% 2.3% 1.5% 0.1% 18.6% New car market (in units)467,569458,796196,773262,023 DIeteren Auto

16 New car registrations & registrations share evolution % 18.6% H1H DIeteren Auto registrations share New car registrations (000) % 17.8% DIeteren Auto

17 Overview Rebound of activities in H2 thanks to new models and presence in new segments Revenue quasi flat, H1 decrease offset by H2 growth Operating margin on revenue stable, despite high marketing costs, due to mix improvement and cost control Networks restructuring completed Competitiveness improvement plan in the Brussels agencies on track DIeteren Auto

18 EUR million % change New vehicles sold (units)89,96895, % Revenue 1,860.11, % Operating profit (EBITA) % EBITA margin2.7%2.8% Net financial result Net extraordinary result8.8-- Profit before taxes % Current result after taxes 1,2, g.s % Current EPS (EUR) 1,2, g.s % Results headlines 1 After allocation of a financial result after taxes associated with DIeterens investment in the vehicle glass segment - see slide Impact of Dicobel in DIeteren accounts in vehicle glass section 2 Share of the group DIeteren Auto

19 Low performance of H1 nearly offset by sales increase of H2 Decrease of new and used vehicles mitigated by more stable other activities Revenue evolution Revenue : quasi flat, overall Revenue breakdown by activity 2% 3% 5% 10% 8% 72% DIeteren Auto

20 Operating profit (EBITA) Savings in overheads Increase of marketing costs and fleet depreciation DIeteren Auto

21 Net result Favourable impact of : ·interest rates ·valuation of own shares ·Provision reversal IFRS : ·Retail restructuration : ·Others : DIeteren Auto

22 Networks development New contrats concluded with dealers in line with European distribution regulation and the specialisation by make Achievements in 2003 DIeteren 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 DIeteren Auto


24 FY 2004 Registrations 470,000 new car registrations expected, + 3% Expected DIeteren 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), Audi A3 5 doors (Sept 04), Seat Toledo (Nov 04), VW Passat (Jan 05) Costs High marketing costs & promotional actions in a still competitive environment Continuing intensive focus on overheads Outlook for 2004 DIeteren Auto

25 Audi A6

26 Seat Altea

27 VW Caddy

28 Agenda Short Term Car Rental

29 Avis EAMEA 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

30 Budget EMEA 65 countries Over 1,000 locations predominately franchisee

31 2003 Results overview 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

32 EUR million % change Revenue 1,169.41, % Operating profit (EBITA) % EBITA margin10.5% 15.7% Net financial result Net extraordinary result Result before taxes Current result after taxes 1, g.s % Current EPS (EUR) 1, g.s % 2003 Results headlines Note: the average shareholding used for the consolidation of Avis Europe is 59.60% compared with 56.78% in Before amortisation of consolidation differences Car Rental with

33 Revenue Car Rental with % change Underlying at constant currency Currency translation French licensee acquisition Revenue at actual rate Budget Centrus Revenue as reported EUR million 1, , , , , ,189

34 Operating profit (EBITA) Car Rental with % change Underlying at constant currency Currency translation French licensee acquisition Operating profit at actual rate Budget Centrus Operating profit as reported Underlying operating margin % EUR million n/m

35 Underlying margin movement Car Rental with RevenueOperating profit Operating margin % 2002 Revenue - Volume up 3.4% - Revenue per day down 4.8% Cost - Inflation - Utilisation - Productivity - Projects 2003 underlying EUR million 1, ,

36 Utilisation Utilisation % Key Operating trends Car Rental with Includes French licensee acquisition Utilisation up 0.9%Productivity up 3.3% Productivity Rentals per FTE Fleet Staff

37 Net extraordinary charge Car Rental with Centrus Software project Impairment on earlier acquisitions (Holland, Münster) Budget VAT repayment incl. interest Other Consolidation differences OtherTotal EUR million Net extraordinary charge before taxes Tax impact Net extraordinary charge after taxes 92.5 Share of DIeteren (59.60%) 55.1

38 Car Rental with 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 Yield management

39 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 Car Rental with Investment for margin improvement

40 Car Rental with EUR 78 m spend over 4 years Exceptional costs Capital Expenditure EUR million Investment for 1% point margin improvement by 2006

41 Budget RAC acquisition Car Rental with Rebuilding the business Revised strategy Strengthening licensee relationships Re-establishing UK network, including 4 airport locations recently acquired Head office and call centre consolidated into Avis facilities Other synergies, including joint sourcing of vehicles and on-line reservations

42 2004 Outlook Car Rental with 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

43 Vehicle Glass with Belron Agenda

44 Business summary The worlds 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

45 2. The global AGRR market* VGRR potential in accessed markets 21.5m jobs Belron share 21% Based on 2003 market and data Continuing growth opportunities Worldwide Vehicle Parc 834m units Vehicle parc in markets where Belron operates 250m units

46 Clear strategy Profitable Growth Sales Growth Efficiencies Strategic Initiatives Business Unit Share Growth New Markets Standardisation Support from Centre Acquisition Franchising New Opportunities Brand Key Accounts Service Innovation Exec Development Leveraging Fixed Costs Productivity IT Systems Supply Chain

47 2003 Results overview Vehicle glass with 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

48 2003 Results headlines Vehicle glass with EUR million % change Total jobs (in million units) % Revenue1, % Operating profit (EBITA) % EBITA margin7.8%7.6% Net financial result Net extraordinary result Profit before taxes % Current result after taxes 1, % Dicobels 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

49 Revenue Italy, Sweden, Norway, Brazil , %+ 8.1% + 3.3% Vehicle glass with

50 Europe + 10% FranceGermany UKIreland NetherlandsBelgium SpainItaly PortugalSwitzerland LuxembourgDenmark SwedenNorway Rest of the world +1% CanadaNew Zealand AustraliaBrazil Geographical revenue breakdown 2 Revenue evolution 2 (EUR million) Europe 82% Rest of the world 18% Revenue by geography Growth 1 above 10% in UK and France Growth 1 above 25% in high potential markets such as Spain and Portugal Turbulent market conditions in Canada 1 at constant FX 2 at actual FX Vehicle glass with

51 Operating profit (EBITA) Includes: - IT costs - Call centres - Head offices Purchasing and productivity 10 additional branches Vehicle glass with

52 Net result Vehicle glass with EUR million Net result 2002 Net result 2003 EBITAFinancial results Amort. consol. diff. Extraordinary result TaxationMinority interest Positive extraordinary results in 2002 Restructuring of the UK supply chain Cost reduction plans in Australia & Canada Reduction of net debt

53 Growing geographic coverage Franchise agreements in Poland, Serbia Montenegro Total Belron franchised countries today : 9 New subsidiary in Norway (Jul 03) – Acquisition of Norways largest vehicle glass company – Revenue of EUR 6.5 m in 2002 in vehicle parc of over 2.5 m vehicles Enhancing Belrons 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 Vehicle glass with

54 Growing geographic coverage : 15 new markets since 1999 Vehicle glass with 2000 : Switzerland, Greece 2001 : Denmark, Turkey, Slovenia, Croatia, Bosnia 2002 : Sweden, Italy, Czech Rep., Israel 2003 : Norway, Brazil, Poland, Serbia-Montenegro

55 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 Vehicle glass with

56 Impact of Dicobel in DIeteren accounts Vehicle glass with 70% 1 Net financial charges after taxes borne by the automobile distribution segment and allocated to the vehicle glass segment 1

57 Appendices

58 Consolidated P&L Account DIeteren

59 Consolidated balance sheet Autom. DistributionCar RentalGroup *Equity pick-up and receivables DIeteren

60 Appendix A : P&L account of DIeteren Auto D'Ieteren Auto * share of the group EUR million

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

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

63 Appendix D : Reconciliation Net result vs. Current result after taxes * Average shareholding %age : 59.60% in 2003 ; 56.78% in Closing shareholding %age : 59.59% in Car Rental with EUR million

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

65 Appendix F : Reconciliation Net result vs. Current result after taxes Vehicle glass with Current result after taxes, before amortisation of consol. diff. Amortisation of consol. diff. EUR million

66 Financial Communication T. : F. : DIeteren

67 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"

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