Presentation summarising financial_results_for_2013
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Transcript of Presentation summarising financial_results_for_2013
"Coming together is a beginning, staying together is
progress, and working together is success.„
Henry Ford
Warsaw, June 4Conference summarising 2013 results
When we summed up 2012, we presented the Inter Cars Group's results according to our 5 P values: Revenue, Certainty,
Forecasts, the Future and Increasing the level of information
As we sum up 2013, we'd like to look at the results of the Inter Cars Group through
the eyes of the people who create these results every day: The People of Inter Cars
THE AUTOMOTIVE MARKETPART 1
the partscreate
the whole
The car market in the U.S.
The car market in Europe (35 countries)
The European parts market (35 countries)IAM
independent market
OES car producers' market
Only parts - excluding labour costs
Europe €115 blnIncluding Inter Cars 25%
Product share:partsaccessoriestireschemicalsglass
55%14%14%16%3%
MARKET FRAGMENTATIONRevenue of Europe's top 5 parts distributors vs revenues from the entire European
parts market
Revenue of the entire car parts market in
EuropeRevenue of the top 5 distributors in Europe
CONCLUSION:In a fragmented market, where the 5 largest companies have 5% of the market, Inter Cars will focus on organic growth
Direction: growthHow can you increase your share of a market
where no player has a significant share? expand the branch network improve logistics develop support systems for garages invest in support and infrastructure
BUILDING STRUCTURES FROM SCRATCH DELIVERS BETTER RETURNS IN THE LONG RUN
Diagram of the independent parts distribution market
Client level
Production level
Market shareparts producers
car producers
Wholesale level
Market share
Independent wholesalers
Carproducers
Garage levelMarket share
Independent garages
Authorised networks
Inter Cars - among the largest in Europe, and the world
Top parts distributors:
In Europe:
1. Stahlgruber GmbH2. Autodistribution3. Alliance Automotive Group4. Trost Auto Service Technik SE5. Inter Cars SA
In the world:
1. AAP & GPI2. AutoZone3. Genuine Parts Co.4. O'Reilly5. Stahlgruber GmbH + PV6. Uni-Select, In.7. Autodistribution8. Alliance Automotive Group9. Trost Auto Service Technik SE10. Inter Cars SA
Inter Cars - safe motoring
Poland loses PLN 30 billion a year covering the indirect costs of accidents, such as treating injuries and repairing vehicles and infrastructure
Poland has the second-highest number of fatal road accidents in Europe
According to an EU report, technical faults cause 6% of all car accidents and 8% of motorcycle accidents
We want to protect the quality and honesty of car repairsWe want to protect the commercial and legal security of small companies in the industry, so we created:A system that precisely lays out the PROPER
CUSTOMER-SERVICE PROCEDURES in our garages
The MOVEO employers' organisation, whose purpose is to protect the interests of the automotive market
Constant care for drivers and small businesses, such as Independent Garages and Vehicle Inspection Stations
Research at a group of Vehicle Inspection Stations shows that as many as 21% of cars miss their inspection deadlines, which is punished only by a PLN 50 fine
FINANCIAL MARKETS
PART 2
the partscreate
the whole
In 2013 we launched a range of tools for investors:New IR serviceMobile versionInteractive charts
Interactive tablesPDF generator
MAY Inter Cars shares reach the highest level in more than five years JUNE Inter Cars heads for
an all-time high
JUNE Inter Cars is one of five Warsaw-listed companies worth betting on
JUNE Inter Cars is one of 10 favourites for the upcoming earnings season
JULY IC named as a "company worth having in your portfolio"
JULY Trigon brokerage: Investors are once again snapping up Inter Cars shares
JULY IDMSA brokerage: Inter Cars is reaching further record highs
AUG. IDMSA raises Inter Cars target price to PLN 153.90
AUG. IDMSA: Inter Cars is one of four analyst picks
SEPT. BZ WBK brokerage: Inter Cars among the top 11
OCT. Inter Cars in a strong growth trend OCT. Inter Cars shares reach
an all-time record
OCT. IDMSA raises Inter Cars target price to PLN 174
NOV. Parkiet newspaper: Inter Cars has a chance to reach further heights
LAST YEAR ON THE WSE
Every year, in this publication we will summarise:
Increasing the level of information
IN LINE WITH LAST YEAR'S "5 P" STRATEGY, WE DESIGNATED INCREASING THE LEVEL OF INFORMATION AS ONE OF THE FIVE MOST IMPORTANT ELEMENTS OF INVESTOR RELATIONS DEVELOPMENT..After launching the website and the "One PDF" function, it was time for the IC ANNUAL IR BULLETIN, in print and online versions
The Company's financial resultsCompleted investmentsReports from international marketsInformation on the business environmentStrategic plans for the future
An important day in the INVESTOR RELATIONS
calendar. In 2013, Inter Cars won the prestigious title of
Listed Company of the Year, advancing to first place (from
sixth place in 2012)
Listed Company of
the Year, 2013Thank You!
More than 120 experts surveyed by TNS Polska for the Puls Biznesu newspaper evaluated:
management board competencedevelopment prospectsinvestor relationsquality of products and servicessuccess in 2013
INTER CARS IN FIGURES
PART 3
the partscreate
the whole
YESTERDAY'S INTER CARS
1997-1998 - First central warehouse, inauguration of the garage chain
1990 - The beginning
1998-1999 - First foreign company, transformation into joint-stock company
2000-2003 - First 6 branches, first B2B trade fairs, start of expansion onto eastern markets
2004-2005 - Stock exchange debut 2006 - First PLN 1 billion
revenue
2007-2008 - Merger with JC Auto
2009 - PLN 2 billion in revenue
2010-2011 - 20-year anniversary, restructuring of foreign companies
2012 PLN 3 billion in revenue, launch of motointegrator project
2013 - Listed Company of the Year
Foreign markets are the basis for stable growthThe way to grow sales is diversification of markets
Slovakia No. 1Croatia No. 2Lithuania No. 2Romania No. 3Czech Republic No. 3Hungary No. 6Bulgaria No. 10
In light of the exceptionally high growth potential of
each of our markets, we're prepared for continual
expansion of our international infrastructure
and unflagging growth
01
02
03
12markets
27%In light of the exceptionally high growth potential of each of our markets, we're prepared for continuous expansion of our international infrastructure and unflagging growth
Thanks to additional markets, we're still adding to our existing revenue sources
expansionThe scale and tempo of the Company's further growth are inseparably linked to expansion on further foreign marketsexpansion
Inter Cars' Strategy on European Markets
We estimate that in the next 10-15 years the countries of Central & Eastern Europe will maintain
high growth in parts distribution, chasing Western countries
Western European countries are stable markets with slow growth in parts distribution and car ownershipEastern European countries (Belarus, Russia, Ukraine) are markets with good prospects, sensitive to the political situationCentral & Eastern European countries are markets with growing parts distribution and car ownership
The Western European average
is 1 car for every 2 residents
INTER CARS IN FIGURESCONSOLIDATED REVENUE REVENUE OF FOREIGN DISTRIBUTION
COMPANIES
Inter Cars: high ROICHow Inter Cars increases return on invested capital
Continual improvement in quality of the service for which Customers choose Inter CarsDevelopment of a unique One Stop Shop ecosystem of products and servicesIncrease of efficiency in servicing growing product volumes, in the highly advantageous proportions of 5% cost growth against 20% growth in the scale of delivered servicesConstruction of consolidated purchasing power within the Group and with external Partners
THE PEOPLE OF INTER CARS
PART 4
the partscreate
the whole
The people of Inter Cars - everyone under one roof
A perfect structure is made up of thousands of parts
A perfect company is made up of its employeesEach employee is like a part that helps create the
wholeIt's their strength that drives the company, shapes its
everyday reality and creates its futureWe're investing in ourselves. We're investing in
people.
Our family in Europe numbers 5,825 peopleThat's 5,825 new thoughts every day
5,825 solutions5,825 ideas
330 people employed in the head office56 people employed in the marketing company ICMS1,200 people employed in foreign companies1,607 people employed in four regional HUB warehouses72 people employed in the ILS logistics company2,310 people employed in domestic branches100 people in Lauber, 150 people in Feber
5,825 personalities of Inter Cars
Inter Cars Is All of Us
ONE STOP SHOP TEAM - WE GET OUR MOMENTUM FROM DIVERSITY
How a career blossomsRafał Kwiatkowski began working with Inter Cars in 1999
In 2001 he ran one Inter Cars branch, generating PLN 240,000 in annual sales
But he had a vision of a bigger business, and asked Inter Cars for help in achieving his goals
Within days, it was decided to give Rafał the support he needed to expand his sales structure
Real people - real stories
Today, after 12 years, he's the owner of 20 branches and his annual sales reach PLN 200 mln
That's how a career blossoms. Thanks to co-operation and support from partners, and thanks to people who take life by the reins
ONE STOP SHOP
PART 5
the partscreate
the whole
A comprehensive offering - the comfort you need
We ensure the broadest product range on the marketWe guarantee a perfect distribution networkWe provide investment and marketing agreementsWe transfer knowledge in our training systems and Young Workforce programme
We listen to our branch owners' voices
We take care of our Partners
We consult our decisions with the market
We create plans based on historical experience
Inter Cars - Investing in knowledge
training for garagesthe Young Workforce programme - supporting the development of young people in automotive schools
Show Car and Young Workforce: investment in development
a growing base of loyal business partnershigh level of integration and standardisationflow of knowledge and know-how
WE INVEST IN DEVELOPMENT AND QUALITY CONSOLIDATION THROUGH: RESULT:
Inter Cars - Investing in youth
There is still much to be doneBy educating leaders, we shape the future and determine the presentWe help automotive schools and their
students, the mechanics of the future
By creating new possibilities for technical education we seek not only to influence the quality of education itself, but also to raise the prestige of the car mechanic profession among young people
We want our flagship Launchpad to Success to also be a Launchpad to quality and prestige for garage servicesThe Young
Workforce Projectis an investment in youth
Inter Cars' Products & Services
Product Range
Sales - GaragesSales - Branches &
Internet
ProductsSpare partsGarage equipmentAccessories
ServicesFleetILSICMS
ProductionFeber - trailer productionLauber - parts rebuilding
NEW TECHNOLOGIES
PART 6
the partscreate
the whole
Development of B2C communicationa strategy for generating information for end-users about our products
In the world of the end-user, Inter Cars is more than just a good product
and good service
It's the offering of a business with passion
Two million unique visitorsvisit Inter Cars websites every month
We offer our Customers solutions built on passionAlmost 60 thematic websites created for various groups of driversDozens of profiles in social media, bringing together tens of thousands of motoring fansPoland's largest Spare Parts, Tools and Garage Equipment FairPoland's largest regular automotive event, the Inter Cars Motor ShowThe most comprehensive Roadside Assistance programme on the marketA unique affiliation program for all motoring fans
The future - advanced software
An integrated information environment that supports: monitoring of vehicle usage and repair costsmonitoring of repair processes/repair historyshared IT tools for the garage and the driver
software to service garagesunlimited access to the product base
The Future - InternetMotointegrator - an original solution in end-user service
We offer help in developing an online receptionWe help pair products with servicesWe respond to any query in less than 20 secondsWe help select the best productWe call back with an estimate and suggested appointment time in one of our garagesWe offer support in difficult situations on the roadCONCLUSION: as a result of these operations we direct more than 10,000 people to garages each month
MOTOINTEGRATOR: THE COMFORT OF A SERVICE THAT OFFERS EVERYTHING IN ONE PLACE
The Future - E-commerce
154 branches in the country and 134 branches abroad as the basis
for Internet sales
Our 154 local branches and 134 abroad give us a significant increase in competitiveness in reaching clients. They will be a highly developed logistics base, including locations for free pick-up of products ordered by customers.
We have the needed infrastructureWe have the human resources and the ability to executeWe have developed the appropriate strategic orientation, supported by experience and market knowledgeWe have a vision, a goal and the real possibility to achieve itAnd our sales, service and logistics centres will become a valuable additional space, integrating the company with our Customers both in B2B and in B2C
WE'RE INVESTING IN E-COMMERCE
a significant increase in competitiveness...
E-commerce is growing
by 20% each year
FUTURE DEVELOPMENT
PART 7
the partscreate
the whole
Modern solutions in logistics services
131
Daily number of deliveries: 3 a day
in each location in Poland
14 hours a day, from the Baltic to the Balkans
157
Daily number of delivery vehicles sent out from our regional warehouses: 256
Infrastructure
121,000 SKU
71,000 SKU
300 branches and 70,000 SKU
Inter Cars: Investing in Innovation Pays Off
A New Growth Engine for the Inter Cars GroupA Modern Centre of Logistics and ExpansionInvesting in the most advanced and innovative technological solutions in the field of logistics is intended to double the Inter Cars Group's domestic warehouse potential
The scale and significance of the qualitative and quantitative changes in this planned project are so great that within 5-7 years of its launch, the Centre is expected to impact growth in sales from PLN 3.5 billion to as much as PLN 6 billionThe level of technological solutions and equipment in the facility equipment, as well as the entire logistics-IT system, means the scale of the investment will be no less than PLN 155 million
A COMBINED 40,000 SQ M OF SPACEDedicated tire warehouseDedicated oil & lubricants warehouseSorting capacity up to 30,000 items per hour for 720 clients simultaneously17,000 pallet spaces18,000 shelf spaces
Value added by the new investment through:Optimisation of internal warehouse processesIncreased potentialAbility to tighten co-operation with suppliers in the field of building common supply chains
A Mechanical organism
How do Inter Cars' innovations help people?
By building everything organically in each market, we learn from experience, compiling a single body of knowledge about the needs and expectations of our Customers
We operate based on the idea of the one stop shop, in which we comprehensively ensure the broadest range of products in line with demand, guarantee a perfect distribution network, give access to investment and marketing agreements and transfer knowledge in the training system and the Young Workforce programme
We continually invest in the development of processes that affect the feeling of comfort among all our Customers
We are intensively developing the field of e-commerce, investing in the confidence and loyalty of both our business partners and our end-users
Thank you for your attention