Inchcape Plc · LSE:INCH
Inchcape — Shareholder Meeting (May 2005)
43 slides from Inchcape's shareholder meeting presentation, May 12, 2005
Slide 1: Inchcape Annual General Meeting
Inchcape Annual General Meeting • 12 May 2005
Slide 2: Sir John Egan, Chairman: Results overview
Sir John Egan Chairman Results overview
Slide 3: Results overview
Results overview • Headline profit before tax* up 26.7% to £172.0m • Headline EPS* at 161.4p, up 21.9% • Profit before tax £155.3m • High level Group performance – Excellent operating performance from key markets • Final dividend of 35.0p, up 34.6% • Total dividend of 50.0p, up 31.6% * Before goodwi
Slide 4: Share buy back and Board changes
Share buy back and Board changes • Share buy back – £65.0m to be returned to shareholders – Substantial financial capacity to deliver strategy • Board changes – Peter Johnson to become Non-executive Chairman by 2006 AGM • Focus on performance and delivery of strategic initiatives unchanged – Alan Fe
Slide 5: Peter Johnson: Review of 2004
Peter Johnson Group Chief Executive Review of 2004
Slide 6: Review of 2004 - ongoing success of international strategy
Review of 2004 - ongoing success of international strategy • Operating profits* up 25.1% at £176.2m • Headline profit before tax* up 26.7% at £172.0m • Headline EPS* up 21.9% at 161.4p * Before goodwill amortisation and exceptional items
Slide 7: Review of 2004 - ongoing success of international strategy continued
Review of 2004 - ongoing success of international strategy continued • Scale, highly integrated businesses – Distribution, retail and aftersales • Proven expertise in emerging markets – Integrated management – Access to capital • Confident of strategy going forward
Slide 8: Review of 2004 - ongoing success of international strategy continued
Review of 2004 - ongoing success of international strategy continued • Retention of market leadership for Toyota in Hong Kong, Singapore and Greece • Ninth successive year of volume growth with Subaru Australia • Growth prospects in Eastern Europe
Slide 9: Operational review - United Kingdom
Operational review - United Kingdom Operating profit* £27.1m; up 29.7% • UK Retail like for like unit sales up 7.4% – Compared with 2.4% fall in our OEMs’ registrations – Strong performances from BMW/MINI and Jaguar • Recent investments delivering expected benefits – BMW/MINI dealerships (acquired 2
Slide 10: Operational review - United Kingdom continued
Operational review - United Kingdom continued Operating profit* £27.1m; up 29.7% • Ferrari/Maserati – Now focused on Retail – Three dealerships in Egham, St Albans, Sevenoaks • Inchcape Fleet Solutions – Fleet management vehicles under contract up 37.0% – Improved disposal margins on contract hire v
Slide 11: Operational review - Greece/Balkans
Operational review - Greece/Balkans Operating profit* £20.8m; up 13.0% Greece • Strong market – Due in part to Olympics • Volumes up 7.1%; retained market leadership for Toyota – Despite supply constraints • Continued investment in Athens and Salonica – Two new Toyota dealerships opened in Athens *
Slide 12: Operational review - Greece/Balkans continued
Operational review - Greece/Balkans continued Operating profit* £20.8m; up 13.0% Balkans • Market growth rates of c. 40.0% in Romania and Bulgaria • Overall volume growth of 48.5% • Profits rose by over £2.0m • Romania – Growth of 64.9% in unit sales – Toyota market share increased to 3.5% • Bulgari
Slide 13: Operational review - Belgium
Operational review - Belgium Operating profit* £13.5m; down 5.6% • Difficult year – Toyota supply constraints, especially diesel • Market share down slightly • Lexus sales increased by over 44.0% – Encouraging future product pipeline * Before goodwill amortisation and exceptional items
Slide 14: Operational review - Australia/New Zealand
Operational review - Australia/New Zealand Operating profit* £27.6m; up 27.2% • Further sales and profit growth for Subaru – Record sales of 33,600 units, up 12.7% – Record market share of 3.5% • Strong performance from Melbourne Retail – Units sales up 23.0%; profits up 28.6% – Margins of almost 4.
Slide 15: Operational review - Hong Kong
Operational review - Hong Kong Operating profit* £29.8m; up 31.9% • Market grew by 23.3% (excluding taxis) – Returning consumer confidence • Crown Motors increased market share to 35.5% • Underlying profit growth of 46.9% – Excluding currency translation loss * Before goodwill amortisation and excep
Slide 16: Operational review - Singapore/Brunei
Operational review - Singapore/Brunei Operating profit* £56.1m; up 17.6% • Profit growth of 27.0% (excluding currency translation loss) Singapore • Toyota/Lexus units sales up 28.5%, in a market up 24.9% • Toyota/Lexus market share increased to 30.9% • Continued investment in aftersales • Margins up
Slide 17: Operational review - Other
Operational review - Other Operating profit* £18.9m; up 47.7% • Finland – Market share up to 3.6% • Guam – Increased profits and market share • Chile – BMW volumes up by 73.9% • France – Returned to profit * Before goodwill amortisation and exceptional items
Slide 18: Investment and growth opportunities
Investment and growth opportunities • Sales and earnings growth – Continued investment in core markets – Increased retail investment in emerging markets – Possible new territories and new OEM partners • Scope for further investment in UK – Further dealer consolidation in UK Retail – Largest independ
Slide 19: Investment and growth opportunities continued
Investment and growth opportunities continued Eastern Europe • Presence already in Sofia and Bucharest • Entered Polish market in late 2004 • Exclusive Importer and Retailer for Mazda in Estonia • Further opportunities in 2005 China • Opportunities under review
Slide 20: Summary
Summary • Another high level Group performance in 2004 • Underlying performance strengthened by further investment • Significant opportunities available to the Group • Well placed to continue established record of profit growth and strong cash generation
Slide 21: Sir John Egan, Chairman: Current trading
Sir John Egan Chairman Current trading
Slide 22: Trading update
Trading update • UK Retail has positive start to 2005 – Further aided by acquisition of six Mercedes-Benz dealerships • Greece and Belgium – Better product availability and slightly broader range will help performance in second half of the year • Australian performance ahead of expectations – Market
Slide 23: Trading update continued
Trading update continued • Continued benefit from broad geographic spread and strong operational performance • Further progress for Inchcape in 2005 • Well placed to continue record of profit growth and strong cash generation
Slide 24: Inchcape Annual General Meeting
Inchcape Annual General Meeting • 12 May 2005
Slide 25: AGM Resolutions
RESOLUTIONS A eke c [. — ;
Slide 26: Report of the Auditors
Report of the Auditors PricewaterhouseCoopers LLP Independent Auditors’ report to the members of Inchcape plc
Slide 27: The accounts
Resolution 1 1 The accounts PLEASE VOTE ON RESOLUTION 1 NOW
Slide 28: Board report on remuneration
Resolution 2 2 Board report on remuneration PLEASE VOTE ON RESOLUTION 2 NOW
Slide 29: Final ordinary dividend
Resolution 3 3 Final ordinary dividend PLEASE VOTE ON RESOLUTION 3 NOW
Slide 30: Election and re-election of Directors
Resolutions 4 to 7 Election and re-election of Directors
Slide 31: Election of Will Samuel as a Director
Resolution 4 4 Election of Will Samuel as a Director PLEASE VOTE ON RESOLUTION 4 NOW
Slide 32: Election of David Scotland as a Director
Resolution 5 5 Election of David Scotland as a Director PLEASE VOTE ON RESOLUTION 5 NOW
Slide 33: Re-election of Alan Ferguson as a Director
Resolution 6 6 Re-election of Alan Ferguson as a Director PLEASE VOTE ON RESOLUTION 6 NOW
Slide 34: Re-election of Ken Hanna as a Director
Resolution 7 7 Re-election of Ken Hanna as a Director PLEASE VOTE ON RESOLUTION 7 NOW
Slide 35: Re-appointment of Auditors
Resolution 8 8 Re-appointment of Auditors PLEASE VOTE ON RESOLUTION 8 NOW
Slide 36: Auditors' remuneration
Resolution 9 9 Auditors’ remuneration PLEASE VOTE ON RESOLUTION 9 NOW
Slide 37: Authority to allot shares
Resolutions 10 & 11 Authority to allot shares
Slide 38: Authority to allot relevant securities
Resolution 10 10 Authority to allot relevant securities PLEASE VOTE ON RESOLUTION 10 NOW
Slide 39: Authority to disapply pre-emption rights
Resolution 11 11 Authority to disapply pre-emption rights PLEASE VOTE ON RESOLUTION 11 NOW
Slide 40: Authority to make market purchases of the Company's shares
Resolution 12 12 Authority to make market purchases of the Company’s shares PLEASE VOTE ON RESOLUTION 12 NOW
Slide 41: Amend Company's Articles of Association
Resolution 13 13 Amend Company’s Articles of Association PLEASE VOTE ON RESOLUTION 13 NOW
Slide 42: Please check you have:
Please check you have: • Voted on all resolutions on which you wish to vote • Printed your name on poll form • Entered name of shareholder if you are a representative or proxy • Signed the form Deposit forms in ballot boxes as you leave
Slide 43: Inchcape Annual General Meeting
Inchcape Annual General Meeting • 12 May 2005