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Pride in Performance Awards 2013

The Winners of this year’s Pride in Performance Awards have each demonstrated an absolute determination to make things happen. Their outstanding cases are fine examples of the attributes found in many winning PIP entries – the vision to reach new performance levels, an understanding of customers’ needs, a constant search for innovative ideas, the ability to work in teams, and the tenacity to solve problems.

Out of the 33 strong entries received for this year’s PIP awards, five were selected as Winners of the Categories: Auto2000 for ‘Customer Engagement’, Hongkong Land for ‘Inspiring Talent’, Cycle & Carriage, Singapore for ‘Marketing Excellence’, Hong Kong Air Cargo Terminals Limited for ‘Innovative Ideas’ and Zung Fu, Hong Kong for ‘Superior Growth’. The Judging Panel commended the Category Winners for their excellent business cases. We saw that the teams have taken great pride in their performances, and rightly so, for they have put in a tremendous amount of effort in order to achieve their outstanding results.

After the Judges’ careful consideration, the Grand Prize for 2013 has been awarded to Auto2000 for developing its after-sales operations and generating superb growth. The initiative demonstrates sharp business acumen in identifying targeted strategies to meet a growing demand and increasing customer needs. By mobilizing its 20,000 staff across Indonesia, Auto2000 has successfully improved productivity and enhanced customer satisfaction. Its very impressive result is a testament to the team’s vision, determination and drive.

I would like to congratulate all the PIP Award winners and thank all the participating teams for sharing their successes with us.

Ben Keswick26th April 2013

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CUSTOMER ENGAGEMENT AND GRAND PRIZE WINNER

Auto2000, Indonesia

INSPIRING TALENT

Hongkong Land, Hong Kong

MARKETING EXCELLENCE

Cycle & Carriage, Singapore

INNOVATIVE IDEAS

Hong Kong Air Cargo Terminals Limited, Hong Kong

SUPERIOR GROWTH

Zung Fu, Hong Kong

PANEL OF JUDGES

Ben Keswick Panel ChairmanManaging DirectorJardine Matheson

Choo Chiau BengGuest JudgeChief Executive OfficerKeppel Corporation

Lily ChanCEO, Mannings (Hong Kong & Macau)Dairy Farm

Monica HongYoung Executive Representative

David HsuDirectorJardine Matheson

Jodjana JodyCEO, Auto2000Astra International

Adam KeswickChairman Jardine Motors

Wilson KwongChief Executive, JEC Jardine Pacific

Alex NewbiggingGroup Managing DirectorJardine Cycle & Carriage

James RileyGroup Finance DirectorJardine Matheson

Jonas SchuermannGeneral ManagerMandarin Oriental, Hong Kong

Douglas WhiteManaging Director, North AsiaJLT

John WittChief Financial OfficerHongkong Land

Generating value for customers by offering them the right products and services, while building relationships that enhance loyalty.

CUSTOMER

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Grand Prize Winner and Category Winner

Auto2000, IndonesiaAuto2000 Profits from Enhanced Customer Experience

“ A holistic and methodical approach to serve customers better.”

“ Comprehensive approach in building customer loyalty, enhancing profitability from the after-sales side and creating sustainable growth for the company.”

“Tangible changes with very real results. Continued innovation from Auto2000.”

The Judges

With 63% of buyers stating that ‘good after-sales service’ was their key motivation for purchasing a Toyota vehicle, Indonesia’s leading Toyota dealer, Astra International (Auto2000), realized that increasing customer expectations and a forecast growth to 500,000 new cars a year by 2015 required it to overhaul its after-sales operations. Its main challenges included a limited workshop capacity and a low rate of customer retention for maintenance services.

To deal with the anticipated market growth, Auto2000 first expanded its workshop network from 154 to 164 outlets throughout Indonesia. In addition to shopfront outlets, Auto2000 also increased the size of its mobile maintenance fleet – Toyota Home Service – by 25 units to 179 units. Four specially equipped Toyota Home Service Hilux units were also introduced to service the more remote mining and plantation areas.

To complement the expanded capacity, the company introduced various operational improvements aimed at boosting efficiency and upgrading productivity while simultaneously increasing service value. These ranged from having Service Advisers greet customers and help speed up the administrative process to introducing an Express Maintenance facility to reduce car maintenance lead times. New systems and procedures resulted in accelerating the final inspection process to 1 minute 47 seconds, down from an original 19 minutes, while productivity also improved from 16 units to 18 units per foreman per day. As a result, the overall service quality ratio increased to 99%.

On the employee front, Auto2000 boosted staff training and implemented measures to instil a culture of pride in performance. Through the development of Kaizen (continuous improvement) experts, workshop employees are encouraged to share group activities and ideas aimed at developing team spirit and innovation.

As after-sales service is a key reason in customers’ decision when selecting a vehicle, Auto2000 launched several strategies aimed at enhancing the ‘ownership experience’ by being more responsive to customer needs. These included the launch of a real-time Complaint Management System which resulted in increasing customer satisfaction levels from 69.1% to 72.7%, and the introduction of a Maintenance Reminder Service (MRS) and an Integrated Appointment System (IAS). The MRS, which reminds customers a week before their scheduled periodic service, succeeded in presenting a 40% contribution to total unit entry in 2012 and reduced customer dissatisfaction from 2.4% to 0.9%. The IAS managed to increase the appointment rate from 45% to 61%.

By the end of 2012, Auto2000’s after-sales division had turned in an outstanding performance. Workshop capacity increased by 42% while car maintenance unit entry jumped 17%. The financial results achieved were equally impressive – revenue from repeat customers soared by 54% to US$740 million and profit from this customer segment jumped 45% to US$88 million.

Propelling your talented people forward through skills training, value sharing, or internal marketing and communications.

INSPIRING

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Category Winner

Hongkong Land, Hong KongFrom Mission Impossible to a Stunning Serenade

“ Outstanding results from a small and extremely persistent team.”

“ An exceptional example of a team based approach that delivered superior results, with passion and skillful negotiation, detailed planning and a strong marketing ability.”

The Judges

A team of six from Hongkong Land, armed with dedication and a determination to succeed, has

turned a project dubbed ‘mission impossible’ into a stunning commercial success. The project – the

redevelopment of a 37-year-old residential building in Hong Kong – was fraught with complications and

faced numerous legal and business challenges. Despite team members having to learn radical new skills

and competencies beyond their original hire, each rose to the occasion, personifying the concept of

‘people inspiring people’.

Conceived as a luxury development that would enhance Hongkong Land’s reputation following its re-entry

into the residential property market, Serenade’s original name was Lai Sing Court. As a redevelopment

project, at least 90% of its original owners had to give their consent before the project could proceed –

a process normally requiring years of negotiations. Through an innovative package that involved a new flat

upon completion, a small upfront compensation and a sharing of profits, the Serenade team secured a deal

in a record 18 months.

This proved to be the first of the team’s many innovative moves and an example of its tenacious

perseverance. For it was to face mammoth challenges – from complicated submissions and appeals to the

Town Planning Board and Land Tribunal, to the need for creative sales and marketing efforts in response to

the global economic downturn and tightened mortgage financing.

As at 31st December 2012, the Serenade has outperformed market expectations with over 80% of units sold

at an average price of US$2,934 per square foot. Current estimates of its actual pre-tax ROC and project

return are 147.3% and 29.5% respectively – way above its original ROC target and project return of 41.1%

pre-tax and 18.5% pre-tax. Net profit achieved was US$264.3 million – 297% above the original target.

Seeking out exciting and effective marketing strategies or initiatives that have led to commercial success.

MARKETING

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Category Winner

Cycle & Carriage, SingaporeMarketing Value Over Volume

“ A remarkable achievement by focusing on what customers really want, understand their needs, plus a fully committed team to strengthen internal process.”

“ Forward looking energy resulting in a critical new source of income.”

The Judges

Historically regarded as a support service, Cycle & Carriage, Singapore’s (C&C) Mercedes-Benz

After-Sales Division dramatically changed its contribution to the company’s bottomline after it took

independent workshops offering a cheaper service head-on by repositioning its value proposition

to customers.

To appeal to value-conscious customers, C&C revised its business model and revamped service centre

operations to streamline internal processes. Rather than compete with independent workshops on price,

the dealer chose to enhance its value offering by maximizing customer convenience and creating a demand

for its ancillary offerings, such as car grooming and tyre services.

To facilitate convenience, C&C created a Mercedes-Benz (MB) centralized booking system which allowed

customers to book services online as well as introduced a one-hour express service with a 30% discount

should the workshop fail to meet the deadline. Instead of cash discounts for trade-ins, the after-sales

division worked with the sales department to offer service credits which helped retain customers.

Noting that customers often go elsewhere for their vehicle grooming, C&C strategically sited MB Body Care

Services outlets at service centre car park bays. Similarly, drive-in tyre stores were located at the front of all

MB service centres with attractive low pricing for tyre rotation and balancing.

To support these initiatives, C&C launched a marketing campaign aimed at educating customers on the

advantages of an authorized dealer versus an independent workshop. A quarterly newsletter featuring

useful information such as car care tips, safety tips, fuel saving ideas and special promotions was created

as part of its direct mail campaign.

By end 2012, C&C proved that its strategy to focus on value outstripped playing the numbers game. While

the number of cars visiting MB service centres over the last four years rose by 15%, profit levels have

increased by 190% to hit an all-time record of US$13.7 million.

INNOVATIVE

Putting new ideas into action to achieve a new milestone in results, performances or productivity.

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Category Winner

Hong Kong Air Cargo Terminals Limited, Hong KongHactl Flies Higher with COSAC-Plus

“ Fantastic team effort to bring a sustainable platform to the business and protect its position in the market… it gets my vote.”

“ Hactl did it despite facing a mission-critical operational environment with high demands and short cutover time.”

The Judges

Facing a threat to growth, with its biggest customer Cathay Pacific turning into its biggest competitor

following the start-up of Cathay’s cargo terminal at Hong Kong International Airport in 2013, Hong Kong

Air Cargo Terminals Limited (Hactl) launched a pre-emptive strike with a redesign of the software at the

heart of its cargo management system.

Aimed at lifting service levels to unprecedented heights, the new software codenamed COSAC-Plus

represented a major risk – every line of code, feature, template had to be rewritten from scratch on new

computer platforms with a new level of user customization. It was a mammoth and incredibly complex

project affecting over 100 airlines, 1,000 forwarders and 4,000 users.

Not only did Hactl’s IT team complete COSAC-Plus two months ahead of schedule, they delivered it with

every design specification met at 14% or US$4.6 million under budget. Once the new system was ready,

over 4,000 users – including some based overseas – had to be trained on it. Hactl designed and handled

this demanding challenge so successfully that its COSAC-Plus training programme has received the 2012

Hong Kong Management Association Award for Excellence in Training and Development.

Next came the switchover from the old system to COSAC-Plus – a complicated and difficult process in which

151 processes had to be completed in under four hours without any disruption to Hactl’s 24/7 operations.

Through exceptional team management and detailed planning, the switchover was flawlessly executed.

A year after its 2011 launch, COSAC-Plus has transformed Hactl’s operations and redefined service levels for

the air cargo terminals industry, giving it an essential platform to compete aggressively with Cathay’s new

terminal as it comes online in 2013.

Indeed, Hactl is already off to a flying start – during 2012, it signed up ten new airlines and locked in

16 existing customers, accounting for over 20% of total revenue for the year.

Achieving superior growth with consistent outperformance over the past three years.

SUPERIOR

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Category Winner

Zung Fu, Hong KongHyundai Hits Top Gear

“ In a mature market without a premier brand but becoming a market leader in just three years – that says everything.”

“ This is an impressive growth story in a competitive and relatively small Hong Kong market.”

The Judges

Between 2003 and 2009, Zung Fu’s subsidiary Hyundai Hong Kong (HHK) reported consecutive

annual losses as a result of low sales volume and high operating costs. In 2010 management devised a

multi-pronged turnaround strategy that delivered dramatic results – after seven years of negative returns,

HHK achieved a profit of US$825,000 in 2010, US$2 million in 2011 and US$4.3 million in 2012.

After lacklustre Hyundai sales among Hong Kong’s image-conscious consumers, HHK decided to crack the

more pragmatic commercial car market in 2008 with the six-seater H1 van. To build up Hyundai’s image and

create a niche for the H1, HHK sought out influential early adopters and convinced them to write about their

positive experiences. One satisfied H1 owner even created a web forum featuring a Q&A site for interested

buyers to pose questions on the vehicle’s features and reliability. Other innovative marketing strategies

included incentivizing fleet owners and introducing the new environmentally friendly Euro 5 H1 van in 2012

to enhance Hyundai’s eco reputation. As a result, HHK’s market share for the light goods vehicle market

grew from 14% in 2009 to an impressive 33% by November 2012.

As demand increased, HHK moved to overhaul the supply chain which was encountering operational and

regulatory obstacles. Measures here included teaming up with Macau’s distributor to achieve the required

volume for direct shipments from South Korea and working with major right-hand drive distributors to

appeal to Hyundai to produce a greater variety of right-hand drive vehicles. The latter led to HHK doubling

its product range with the launch of four new models – Elantra 4-door sedan, Veloster 3-door coupe,

i40 sedan and i40 wagon.

By end 2012, sales had jumped fourfold to 1,226 units from 306 units in 2009. Best of all, HHK staff are now

inspired to continue pursuing a culture of excellence.

Other Submissions

CUSTOMER ENGAGEMENT

Auto2000, Indonesia Painting a Profit

Indonesia’s leading Toyota dealer, Auto2000, has successfully tapped into a previously ignored market niche – Body & Paint services (B & P) – as an extension of its after sales business. After working through internal challenges, such as increasing workshop capacity and staff training, Auto2000 stepped up efforts to market its B & P services via collaboration with insurance companies and deeper customer engagement.

A comparison of 2012 vs 2009 performance revealed the enhanced contribution of the rejuvenated B & P business – gross revenue has more than doubled to US$41 million while gross profit has jumped 120% to US$6 million.

Auto2000, IndonesiaThe Value of Growing Together

To better position itself to serve Indonesia’s fast-growing and increasingly competitive car market with more demanding customers, Astra International’s Toyota dealer – Auto2000 – moved to strengthen its entire value chain. Greater collaboration with sister companies Toyota Astra Finance Services, Astra Credit Company and Toyota Insurance to develop innovative credit packages resulted in a 26.2% rise in sales. A cross subsidy scheme with Astra’s used car company Mobil 88 increased the number of trade-ins six-fold.

By end 2012, these initiatives have contributed to a 37.5% increase in Auto2000’s PBT from new vehicle sales to US$267 million.

Hero Supermarket, IndonesiaA Giant Champion of Family Values

Indonesia’s leading food retail operator Hero Supermarket has positioned itself as the champion of family values with its highly successfully ‘Pulang Kampung’ (Homecoming) promotional campaign in celebration of Idul Fitri (end of Ramadan, the Muslim fasting month). The promotion, which debuted in 2009, has grown from strength to strength with 13,700 customers taking up Hero’s

free bus and air travel back to their home towns last year. Customers who spent a minimum of US$10.31 in any Giant store received one point; a total of ten points qualifies for a bus ticket while 15 points gets a free air ticket.

Financial highlights of the 2012 Giant Pulang Kampung campaign included US$175.3 million for Giant and US$237 million for the Hero Group – the highest sales achieved for a two-month promotion.

JEC, ThailandJEC Thailand’s Mega Achievement

Despite a severe flood that paralyzed Bangkok for months, JEC Thailand (JECT) surmounted labour and time constraints and exceeded customer expectations when it completed its biggest project – the US$54 million electrical and mechanical contract for Bangkok’s Mega Bangna shopping mall – on time and on budget. Key to this achievement was JECT’s ‘We Will Make It’ mindset, innovative culture and team spirit.

JECT’s work ethics and professionalism resulted in the project generating a profit of US$3.8 million, 15% above the original budget. The success of the project has cemented JECT’s relationship with Mega Bangna’s joint venture developers, Siam Future Development Public Company and Singapore-based Ikano, laying the foundation for future collaboration opportunities.

Pamapersada Nusantara — Distrik Kide, IndonesiaPAMA Energizes Productivity

After three years of falling behind its performance target at Kideco Jaya Agung (KJA), Indonesia’s third biggest coal mining company, coal contractor Pamapersada Nusantara resolved to create excellence through its Comprehensive Collaboration Method (CCM) which focuses on energizing teamwork to maximize efficiency and productivity.

A year later the impact of CCM was significant – not only did health and safety issues improve, PAMA exceeded its coal production and overburden targets by 109% and 114% respectively. This achievement is expected to result in a total bonus of US$2.6 million.

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United Tractors, IndonesiaUT Wins through Proactive Customer Engagement

With mining contributing 80% of United Tractor’s (UT) heavy equipment business, management decided to become more proactive in its customer engagement. A pilot project, ‘Customer Solution Management’ programme, was initiated with two mid-sized mining contractors, HaritaPancaUtama (HPU) and MadhaniTalatah Nusantara (MTN). UT teams assigned to HPU and MTN were charged with developing an in-depth understanding of both companies’ business and operational issues. This resulted in UT implementing initiatives in areas such as inventory, IT and environmental health and safety management, productivity improvements and staff training.

Both HPU and MTU have since experienced operational and maintenance improvements as well as new business success. UT’s year-end financials happily reflected this success – parts and service revenue from HPU soared 1,261% while unit sales of MTU increased by 112%.

INSPIRING TALENT

JLT, United KingdomJLT Invests in Leadership Excellence

In line with its belief that a company’s greatest assets are its leaders, JLT has designed an innovative International Senior Management Programme (ISMP) aimed at developing talent and leadership excellence. Launched in 2010, the annual ten-day programme takes 24 senior managers across JLT’s global operations and focuses on improving each individual’s strengths and deepening their approach to collaboration. This is followed up and supported by a long-term bespoke development programme for each individual.

JLT’s investment in its ISMP is a manifestation of the group’s strategic vision and commercial goal. As well as honing specialist skills, JLT aspires to build its international reach and expand from 7,500 to 10,000 staff in 33 countries over the next three to five years.

Jardine Motors, United KingdomInspiring a Culture of Excellence

When Jardine Motors acquired Wolverhampton Audi in 2007, the centre was languishing in the doldrums, with staff morale and sales figures at an all time low. Management embarked on a turnaround plan, with the goal of propelling Wolverhampton into one of the top Audi centres in the UK within five years. Besides defining a new corporate vision and performance culture, the company implemented strategies aimed at building team spirit, creating a service mindset and becoming more involved in the community.

By end 2012, Wolverhampton’s performance had surpassed expectations – new retail sales increased 35%, used sales grew 56% and gross profit jumped 24%. Customer retention is now at 55% and staff attrition has reduced to 18% per annum, well below the brand norm of 26%.

Jardine Schindler, Hong KongTogether We Will Succeed

When Jardine Schindler Hong Kong (JSHK) set out to improve employee engagement, inertia proved to be its greatest challenge. With the majority of its employees comprising technicians accustomed to a hierarchical operational structure, JSHK had to devise numerous strategies to convey the company’s vision, mission and values and convince all staff of the importance of a two-way communication process.

Three years after JSHK initiated its employee engagement scheme, a 2012 survey validated its intensive efforts. Not only did it achieve a market leadership position in new installations, JSHK doubled modernization sales and reduced ‘loss work day cases’ from 10.8 in 2008 to 1.6 in 2011. When benchmarked against the international best-in-class index, JSHK’s results were significantly above the norm – with training and development 14% above the high performance norm.

MARKETING EXCELLENCE

Auto2000, IndonesiaToyota Moves into Top Gear

In anticipation of increased competition from rival brands, Astra’s Toyota dealer Auto2000, revved up its sales and marketing activities in a bid to widen its penetration beyond the key cities in Indonesia. Other strategies aimed at maximizing profitability included strengthening discount management to offer added value and improving payment collection.

Its efforts paid off – 2012 EBIT for new vehicle sales jumped 37.5% to US$262 million. In 2011 Toyota ranked No.1 in 104 of Indonesia’s 160 cities. By end 2012, Toyota was the top selling car in 119 cities.

Daihatsu Sales Operation, IndonesiaDaihatsu Moves Upmarket

Anticipating a sales downturn following Indonesia’s new regulations to increase the minimum down payment for motor car purchases, Astra International – Daihatsu Sales Operation (DSO) moved quickly to target a higher income customer. Shifting its focus from price and functionality to design and brand image, DSO launched a marketing campaign, ‘Daihatsu, Your Friend’, aimed at building a stronger emotional engagement with customers.

The campaign was supported by rejuvenated sales and service outlets with a one-stop solution approach to ensure customers received a seamless experience. By end 2012, DSO increased year-on-year sales by 18% and grew profits by 16%. Daihatsu also managed to successfully retain its position as Indonesia’s number two top selling car, after market leader sister company Toyota.

Guardian, IndonesiaPassion makes the Impossible Possible

Eyebrows were raised in late 2011 when Guardian Indonesia announced a bold plan to add 50 new stores and target US$51.5 million of sales. Determined to get everyone on board, Guardian got every store manager nationwide to sign a personal commitment. Following an operations

review, a comprehensive strategy covering brand perception, people development, vendor partnerships, pricing, product and promotions was drawn up. In addition to these initiatives, the team shored up productivity and imbued a sense of passion for excellence among all staff.

Twelve months later, the cynics were silenced. Guardian has achieved sales of US$54.7 million, a growth of 35%, and opened 48 new stores on time, adding 4,000 sq. m. of retail space.

Health & Glow, IndiaHealth & Glow Woos and Wins Trendy Women

A ready eye for new business opportunities and a keen finger on the pulse of India’s emerging consumer force – young upwardly mobile females – has enabled Health & Glow Retailing Ltd to achieve a sales CAGR of 35.8% and PBIT CAGR of 77% in three years. Between 2009 and 2012, with a monthly advertising budget of less than US$13,000, the Health & Glow team managed to increase customer count by 51% to 3.6 million and improved average transactions by 22% to US$8.6.

From turning declining shampoo sales into an opportunity to become one of India’s largest sellers of hair dryers and creating a new market for baby diapers by focusing on the needs of new mothers, Health & Glow has consistently applied innovative strategies to grow its business and drive productivity.

Pizza Hut, Hong KongPizza and More

Following a double-digit growth in 2011, Pizza Hut Hong Kong was energized to sustain the momentum and even outperform. To achieve this, management had to think ‘out of the box’ and employ a range of innovative marketing strategies to engage its customers. These included introducing new menu items, improving value perception, broadening customers’ profiles as well as building brand affinity through positioning Pizza Hut as a social hub. Above all, staff were inspired to adopt a ‘love what you do’ attitude.

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The results were outstanding – 2012 total sales rose 16.6% and overall brand satisfaction has increased from 57% to 64%. As at October 2012, profits have increased by 39.9% over 2011.

Trane Hong KongTrane-ing the Customer Wins Back Business

Fed-up of competing with inferior products on price points, Trane Hong Kong – a leading provider of heating, ventilation and air conditioning systems – embarked on a marketing campaign to create brand awareness and carve a niche for its more expensive but environmentally friendly R123 chiller units. With a marketing budget of just US$77,410, Trane hit the road with targeted measures – hosting training seminars, directing advertising at technical professionals and participating in events that strengthened its ‘green’ credentials.

Trane’s highly focused strategies have proved effective, delivering 16.4% growth over six years. Revenue for its high-value R123 chillers rose to US$36 million, contributing to 25% of Trane’s total sales revenue. More importantly, its order book today reflects a more diversified customer base, laying the foundations for future growth.

United Tractors Pandu Engineering, IndonesiaUTPE Conquers New Business Frontiers

When United Tractors Pandu Engineering (UTPE) – Indonesia’s leading heavy equipment manufacturer and engineering consultant – started to explore new business horizons in 2008, it identified the maritime and export sectors as targets for growth. Mindful that customer productivity was key to its success, UTPE implemented a marketing programme codenamed ‘i3’ – in-touch, innovate and improve productivity – and focused on creating customized solutions.

As at October 2012, revenue from the marine sector increased 73% to US$24.8 million year-on-year, contributing 20% of UTPE’s total revenue. On the export front, UTPE’s mining machinery has successfully penetrated the Mongolian, Philippine and Australian markets, achieving a revenue of US$4.5 million. Gross profit is up by 16% while net profit has increased by 14%.

INNOVATIVE IDEAS

Astra Daihatsu Motor & Astra Otoparts, IndonesiaSynergy Spurs Success

To strengthen its position in Indonesia’s highly competitive car manufacturing industry, Astra Daihatsu Motor (ADM) forged a strategic alliance with local component supplier Astra Otoparts (AOP) aimed at increasing usage of local components. The idea was to harness the power of value chain synergy to raise ADM and AOP’s share of wallet (SoW) by enabling AOP to take up ADM projects. To achieve this, both ADM and AOP collaborated on improving communications and AOP’s competitiveness and capabilities.

Improved synergy between ADM and AOP has impacted positively with a SoW of 41.3% in 2012 compared with 38.7% in 2007. This SoW represents a sales purchase of US$1 billion sales from AOP, an increase of 257% compared to 2007.

Auto2000, IndonesiaLess Inventory, More Profits

Faced with a rapidly growing car market and aggressive competition from counterfeit parts, Indonesia’s leading Toyota dealer Auto2000 moved to streamline its logistics and warehouse management to enhance productivity. Instead of bigger warehousing and increased stock levels, it implemented a ‘less is more’ strategy by tightening inventory control and optimizing parts availability. To build customer loyalty, it conducted a targeted marketing campaign offering price incentives.

As a result, parts sales for 2012 rose 21% to US$177.3 million over 2011, netting a 23% profit growth of US$12.6 million.

Pamapersada Nusantara, Indonesia PAMA Creates a Man-sized Business Opportunity

Following various accidents while ferrying workers to its mine site, owner Kaltim Prima Coal (KPC) asked that Pamapersada Nusantara’s (PAMA) transporters or man haulers meet precise specifications, which included a genuine 4x4 truck and a cabin equipped with a certified Roll Over

Protection System. Thinking outside the box, PAMA decided to collaborate with Astra’s domestic part providers, Isuzu and Patria, and leasing provider Trac to create an Astra man hauler as per desired specifications.

This has proved to be a win-win solution with all parties enjoying added value and benefits. Best of all, PAMA has enhanced its worksite safety.

Pamapersada Nusantara – Distrik Adaro, IndonesiaPAMA Mines Deeper and Safer

Indonesia’s largest coal mining contractor Pamapersada Nusantara (PAMA) has successfully converted an operational weakness for all contractors – working during the rainy season – into its biggest competitive advantage. Applying innovative solutions to sump management, dredger usage and a new tandem multiple pumping system, PAMA developed a revolutionary dewatering system which has enabled it to mine coal reserves to a depth of 126 metres below sea level, compared to 84 metres previously. Besides greater efficiency, this has also increased the safety aspect of PAMA’s operations.

As a result of this outperformance, revenue has increased by US$366 million per year while profit has grown by US$83 million.

Pamapersada Nusantara – Distrik BCSK, IndonesiaPAMA Turns Mud into Profit

Coal mining contractor Pamapersada Nusantara (PAMA) refused to walk away like other contractors when faced with Sebuku Island’s biggest challenge – a muddy terrain prone to landslides. Instead its team of engineers devised an innovative mud handling operation called ‘Advance Pad Loading Method’ which combined mud loading with an integrated drainage system and transformed the previously unworkable mine into a safe and efficient operating site.

PAMA’s perseverance and performance has led to its appointment as sole contractor for two new mines at the PIT Carbon Mahakam site and the Metalindo Bumi Raya pit.

United Tractors, IndonesiaOptimizing Output through Efficient Input

Believing that a win-win solution is the key to its success, United Tractors (UT) involved all stakeholders in its ‘Lowest Lifetime Cost per Total Output’ Programme aimed at achieving optimal heavy equipment performance and efficient cost management. Since launching the programme in 2007, UT has delivered at least US$194 million of value to coal mining contractor Kitadin in the form of increased overburden and coal production, fuel savings and decreased downtime.

UT also enjoyed a bottomline benefit with increased revenue of US$91 million from parts and service.

Units within Astra Automotive Group and Astra Financial Service Group, IndonesiaAstra Creates Finance Value Chain

Astra’s ASMO 3 and ASMO 4 automotive division – comprising Daihatsu, Isuzu & UD Truck group and Astra Otoparts respectively – has teamed up with Astra’s financial services group – represented by PermataBank and Astra Mitra Ventura – to create a supplier financing value chain. Synergistic benefits of this alliance are: the automotive group enjoys access to working capital from the financial services group while the latter benefits from marketing opportunities in the automotive group’s expanded customer base.

A year after inception, the finance amount has grown 185.5% to US$327.8 million and is expected to hit a target of US$608.6 in 2014.

SUPERIOR GROWTH

Astra Agro Lestari, IndonesiaTogether We will Grow

Astra Agro Lestari subsidiary, Sari Aditya Loka 2,3 (SAL 2,3), produces end products such as crude palm oil and kernel from fresh fruit bunches purchased from oil palm plantations run by independent farmers. In a bid to increase output, SAL 2,3 devised a comprehensive campaign aimed

at raising the farmers’ productivity. Besides providing technical and non-technical guidance, SAL 2,3 worked to build up the farmers’ trust by instituting transparency in its pricing and weighing processes. At the same time, it implemented improvements to increase the capacity and throughput of its mill.

SAL 2,3 achieved a pre-tax profit of US$9.4 million in 2012, an increase of 512% over 2010’s performance.

Astra Honda Motor, IndonesiaHonda Shifts to Top Gear

Honda’s reign as Indonesia’s top-selling motorcycle brand came under threat in 2009 when rival Yamaha narrowed the gap to 0.9%. Determined to extend its lead, manufacturer Astra Honda Motor formulated a plan nicknamed ‘Trans-vation’ (Transformation Innovation). Noting that the AT Scooters were the fastest growing category, it stepped up production of scooter models five-fold to 10,600 units per day. This was done efficiently and cost-effectively. A branding campaign, ‘One HEART’ focusing on making dreams come true, was launched across the entire value chain.

Three years later, Honda’s unit sales have risen 53% to 1.2 million units. Revenue has grown 42% from US$970 million in 2009 to US$1.4 billion in 2012. By end 2012, Honda was expected to widen its lead by 23%, with a strong 58% grip on market share.

Hongkong Land, Hong KongMaking Over a Prince

Facing aggressive competition from new and refurbished properties, Hongkong Land (HKL) decided to make-over the 44-year-old Prince’s Building in Hong Kong to reinforce its credentials as a leading shopping destination. The refurbishment project had to be sensitively managed to achieve a win-win result for both HKL and its mix of international luxury brands and smaller local tenants. Despite the global financial crisis which struck a few months into the renovations, the project was successfully completed on time and on budget.

Since completion, Prince’s Building has enjoyed over 99% occupancy. Annual retail income has increased by US$13.8 million or 46% between 2008 and 2012, and the valuation of this jewel of HKL’s property portfolio has soared by over US$500 million.

Jardine Motors, United KingdomLancaster Land Rover Revs Up Growth

Jardine Motors Group UK (JMG) acquired Lancaster Land Rover in Welwyn Garden in 2008 when the UK was in the throes of an economic downturn. Determined to relaunch the business and repair the reputation of the dealership, JMG embarked on a recruitment drive and worked to instil Jardine Motors’ sales processes and best practice among the staff. A marketing campaign and community engagement programme to change customers’ perception of the dealership followed.

By end 2012, JMG had sold 371 new cars compared to 112 in 2009; 379 used cars against 118 and achieved a gross profit of US$425,900 against US$131,500 for finance and products sold. Compared to 2010, PBT in 2012 jumped over 356% to US$1.5 million, with customer satisfaction rising significantly. Lancaster Welwyn looks set to win the 2012 Land Rover UK Sales Dealer of the Year.

Mandarin Oriental, MunichBoutique and Best

After a US$8.5 million refurbishment in 2007, Mandarin Oriental Munich (MOMUC) ramped up its activities in a bid to be recognized as ‘the best luxury boutique hotel in Europe’. To this end, it created a host of exciting F&B promotions, shifted its sales focus to the leisure business and extended its marketing outreach to new areas such as the US, Middle East and Eastern Europe.

By end 2012, not only did MOMUC’s room occupancy increase to 76.5% compared with 69.85% in 2009, its average room rate jumped to US$822 – well ahead of its top five competitors’ rate of US$419. Trip Advisor has voted MOMUC as Munich’s Top Hotel for 2010 and 2011, while Condé Nast Traveler USA has ranked it among the Top 25 Hotels in Northern Europe.

www.jardines.com