Presentation summarising financial_results_for_2013
- 1. "Coming together is a beginning, staying together is progress, and working together is success.„ Henry Ford
- 2. Warsaw, June 4 Conference summarising 2013 results
- 3. 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
- 4. 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
- 5. THE AUTOMOTIVE MARKET PART 1 the parts create the whole
- 6. The car market in the U.S.
- 7. The car market in Europe (35 countries)
- 8. The European parts market (35 countries) IAM independent market OES car producers' market Only parts - excluding labour costs Europe €115 bln Including Inter Cars 25% Product share: parts accessories tires chemicals glass 55% 14% 14% 16% 3%
- 9. MARKET FRAGMENTATION Revenue of Europe's top 5 parts distributors vs revenues from the entire European parts market Revenue of the entire car parts market in Europe Revenue 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: growth How 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
- 10. Diagram of the independent parts distribution market Client level Production level Market share parts producers car producers Wholesale level Market share Independent wholesalers Car producers Garage level Market share Independent garages Authorised networks
- 11. Inter Cars - among the largest in Europe, and the world Top parts distributors: In Europe: 1. Stahlgruber GmbH 2. Autodistribution 3. Alliance Automotive Group 4. Trost Auto Service Technik SE 5. Inter Cars SA In the world: 1. AAP & GPI 2. AutoZone 3. Genuine Parts Co. 4. O'Reilly 5. Stahlgruber GmbH + PV 6. Uni-Select, In. 7. Autodistribution 8. Alliance Automotive Group 9. Trost Auto Service Technik SE 10. Inter Cars SA
- 12. 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 repairs We 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
- 13. FINANCIAL MARKETS PART 2 the parts create the whole
- 14. In 2013 we launched a range of tools for investors: New IR service Mobile version Interactive charts Interactive tables PDF generator
- 15. Inter Cars shares reach the highest level in more than five years Inter Cars heads for an all-time high Inter Cars is one of five Warsaw-listed companies worth betting on Inter Cars is one of 10 favourites for the upcoming earnings season IC named as a "company worth having in your portfolio" Trigon brokerage: Investors are once again snapping up Inter Cars shares IDMSA brokerage: Inter Cars is reaching further record highs IDMSA raises Inter Cars target price to PLN 153.90 IDMSA: Inter Cars is one of four analyst picks BZ WBK brokerage: Inter Cars among the top 11 Inter Cars in a strong growth trend Inter Cars shares reach an all-time record IDMSA raises Inter Cars target price to PLN 174 Parkiet newspaper: Inter Cars has a chance to reach further heights LAST YEAR ON THE WSE
- 16. 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 results Completed investments Reports from international markets Information on the business environment Strategic plans for the future
- 17. 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, 2013 Thank You! More than 120 experts surveyed by TNS Polska for the Puls Biznesu newspaper evaluated: management board competence development prospects investor relations quality of products and services success in 2013
- 18. INTER CARS IN FIGURES PART 3 the parts create the whole
- 19. 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
- 21. Foreign markets are the basis for stable growth The way to grow sales is diversification of markets Slovakia No. 1 Croatia No. 2 Lithuania No. 2 Romania No. 3 Czech Republic No. 3 Hungary No. 6 Bulgaria 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 12 markets 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 expansion The scale and tempo of the Company's further growth are inseparably linked to expansion on further foreign markets expansion
- 22. 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 ownership Eastern European countries (Belarus, Russia, Ukraine) are markets with good prospects, sensitive to the political situation Central & Eastern European countries are markets with growing parts distribution and car ownership The Western European average is 1 car for every 2 residents
- 23. INTER CARS IN FIGURES CONSOLIDATED REVENUE REVENUE OF FOREIGN DISTRIBUTION COMPANIES
- 24. Inter Cars: high ROIC How Inter Cars increases return on invested capital Continual improvement in quality of the service for which Customers choose Inter Cars Development of a unique One Stop Shop ecosystem of products and services Increase of efficiency in servicing growing product volumes, in the highly advantageous proportions of 5% cost growth against 20% growth in the scale of delivered services Construction of consolidated purchasing power within the Group and with external Partners
- 26. THE PEOPLE OF INTER CARS PART 4 the parts create the whole
- 27. 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 employees Each employee is like a part that helps create the whole It's their strength that drives the company, shapes its everyday reality and creates its future We're investing in ourselves. We're investing in people. Our family in Europe numbers 5,825 people That's 5,825 new thoughts every day 5,825 solutions 5,825 ideas
- 28. 330 people employed in the head office 56 people employed in the marketing company ICMS 1,200 people employed in foreign companies 1,607 people employed in four regional HUB warehouses 72 people employed in the ILS logistics company 2,310 people employed in domestic branches 100 people in Lauber, 150 people in Feber 5,825 personalities of Inter Cars Inter Cars IsAll of Us ONE STOP SHOP TEAM - WE GET OUR MOMENTUM FROM DIVERSITY
- 29. How a career blossoms Rafał 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
- 30. ONE STOP SHOP PART 5 the parts create the whole
- 31. A comprehensive offering - the comfort you need We ensure the broadest product range on the market We guarantee a perfect distribution network We provide investment and marketing agreements We 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
- 32. Inter Cars - Investing in knowledge training for garages the 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 partners high level of integration and standardisation flow of knowledge and know-how WE INVEST IN DEVELOPMENT AND QUALITY CONSOLIDATION THROUGH: RESULT:
- 33. Inter Cars - Investing in youth There is still much to be done By educating leaders, we shape the future and determine the present We 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 Project is an investment in youth
- 34. Inter Cars' Products & Services Product Range Sales - Garages Sales - Branches & Internet Products Spare parts Garage equipment Accessories Services Fleet ILS ICMS Production Feber - trailer production Lauber - parts rebuilding
- 35. NEW TECHNOLOGIES PART 6 the parts create the whole
- 36. Development of B2C communication a 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 visitors visit Inter Cars websites every month We offer our Customers solutions built on passion Almost 60 thematic websites created for various groups of drivers Dozens of profiles in social media, bringing together tens of thousands of motoring fans Poland's largest Spare Parts, Tools and Garage Equipment Fair Poland's largest regular automotive event, the Inter Cars Motor Show The most comprehensive Roadside Assistance programme on the market A unique affiliation program for all motoring fans
- 37. The future - advanced software An integrated information environment that supports: monitoring of vehicle usage and repair costs monitoring of repair processes/repair history shared IT tools for the garage and the driver software to service garages unlimited access to the product base
- 38. The Future - Internet Motointegrator - an original solution in end-user service We offer help in developing an online reception We help pair products with services We respond to any query in less than 20 seconds We help select the best product We call back with an estimate and suggested appointment time in one of our garages We offer support in difficult situations on the road CONCLUSION: 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
- 39. 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 infrastructure We have the human resources and the ability to execute We have developed the appropriate strategic orientation, supported by experience and market knowledge We have a vision, a goal and the real possibility to achieve it And 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
- 40. FUTURE DEVELOPMENT PART 7 the parts create the whole
- 41. 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
- 42. Infrastructure 121,000 SKU 71,000 SKU 300 branches and 70,000 SKU
- 43. Inter Cars: Investing in Innovation Pays Off A New Growth Engine for the Inter Cars Group A Modern Centre of Logistics and Expansion Investing 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 billion The 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 SPACE Dedicated tire warehouse Dedicated oil & lubricants warehouse Sorting capacity up to 30,000 items per hour for 720 clients simultaneously 17,000 pallet spaces 18,000 shelf spaces Value added by the new investment through: Optimisation of internal warehouse processes Increased potential Ability to tighten co-operation with suppliers in the field of building common supply chains
- 44. 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
- 45. Thank you for your attention