Inchcape Plc · LSE:INCH
Inchcape — Investor Day (November 2022)
31 slides from Inchcape's investor day presentation, Nov 24, 2022
Slide 1: In the Driving Seat: Spotlight on Digital & Data
IN THE DRIVING SEAT: SPOTLIGHT ON DIGITAL & DATA 24 November 2022
Slide 2: Considerable opportunities for an ambitious Inchcape
2 Considerable opportunities for an ambitious Inchcape Distribution Excellence Vehicle Lifecycle Services Annual new car volumes (units) Vehicle lifecycle value profit split3 90m 17m New market opportunities Large markets; e.g. China, typically US, UK, 75% Currently insourced Brazil, underserved by
Slide 3: Accelerate: Inchcape's growth strategy
3 Accelerate: Inchcape’s growth strategy Our Growth Drivers Distribution Excellence Vehicle Lifecycle Services Our Enablers Culture and Digital, Data & Efficient Scale Capabilities Analytics Operations Responsible Business
Slide 4: Digital & data is integral to the Group's growth ambitions
4 Digital & data is integral to the Group’s growth ambitions Distribution More Excellence Customers ▪ 1+% outperformance of new car volumes ▪ Mid-to-high single digit profit CAGR + ▪ Further consolidation and expansion Improved Efficiencies Vehicle Lifecycle Services + ▪ At least double used car vol
Slide 5: Inchcape has a leading digital and analytical platform
5 Inchcape has a leading digital and analytical platform Results of an independent third-party report Leader ▪ Inchcape’s global scale and internal development capability is a key point of differentiation Analytics Challenger ▪ Only a few (larger) distributors are well-progressed with digitalisation
Slide 6: Introducing Mark, our Chief Digital Officer
6 Introducing Mark, our Chief Digital Officer Mark Dearnley Joined Inchcape: October 2020 Formative International Consumer Business years: digital: digital: strategist: Electronics engineer CIO @ Cable & Wireless Launched first Boots Partner @ Bain & Co; across 27 markets the chemist focus on privat
Slide 7: Mark Dearnley, Chief Digital Officer
MARK DEARNLEY CHIEF DIGITAL OFFICER
Slide 8: We continue to transform our approach to digital, globally
8 We continue to transform our approach to digital, globally CMD focus areas Today Digital eXperience Platform: DXP live in 36 OEM markets our digital touchpoint Data Analytics Platform: ~70% of all revenue optimised by AI driving smart, fact- based actions Continued technology consolidation A digit
Slide 9: Our approach is driven by the customer need
9 Our approach is driven by the customer need ▪ Consumers spend considerable time 4.5 to 6 hours >1 visit online researching a vehicle spent online researching on average before entering the dealership price and product made to dealership specifics prepurchase prepurchase ▪ Consumers expect an omni-
Slide 10: A global digital infrastructure, driving smarter decisions
10 A global digital infrastructure, driving smarter decisions Digital eXperience Data Platform Analytics Platform Omni-channel Predictive analytics and business intelligence Providing consumers with a fully Central capability to drive better functional digital showroom local and global decision Buil
Slide 11: We have a diverse team, with broad expertise
11 We have a diverse team, with broad expertise Inchcape Digital Executive Team 2 1 10 9 10 5 Tammy Archer Steve Humm Alex Capewell Vincent Petit Bob Wilde Ileana Rojas Chief Information DXP Director Global Data & Analytics ERP & Finance Europe IT Director Americas & Africa Security Officer Director
Slide 12: Our global & scalable digital platform (DXP)
OUR GLOBAL & SCALABLE, DIGITAL PLATFORM (DXP)
Slide 13: Accelerating DXP roll-out across the globe
13 Accelerating DXP roll-out across the globe Timeline of our global DXP roll-out by brand 2020 2021 H1 ’21 CMD 2022 H1 Q3 Number of markets 1 1 10 18 27 31 36
Slide 14: Customer experience significantly improved post DXP launch
14 Customer experience significantly improved post DXP launch Reputation score Industry average DXP rollout Customer experience scores from reputation.com
Slide 15: Omnichannel is supporting our main goals
15 Omnichannel is supporting our main goals… More Improved Higher Customers + Efficiencies + Growth +24% +15% >1% marketable sales outperformance customers conversion Marketable customers: Sales conversion: Outperformance: digital customers proportion of marketable new vehicle volume opting into mar
Slide 16: Our proprietary data analytics (DAP)
OUR PROPRIETARY DATA ANALYTICS (DAP)
Slide 17: Aftersales churn prediction is improving service retention
17 Aftersales churn prediction is improving service retention Before Aftersales customer Limited visibility of customers most at risk of leaving service network Conducted a successful test-phase Distance Days left # repairs / Service history using data analytics to determine to service for warranty
Slide 18: Data analytics is supporting our main goals
18 Data analytics is supporting our main goals… More Improved Higher Customers + Efficiencies + Growth +26% +30% +10% service time spent on Parts revenue bookings genuine hot-leads Aftersales churn- Lead scoring Parts S&OP prediction algorithm algorithm predictive analytics Initial results from test
Slide 19: Smarter use of data has improved our business intelligence
19 Smarter use of data has improved our business intelligence Demand Supply Decision making ▪ Daily focus ▪ Monitoring leading indicators ▪ Algorithms automatically prompt managers ▪ Provides insights across the ▪ Consumer demand dashboard: ▪ Stock risk-management tool distribution value chain: ▪ We
Slide 20: Digital and data joins up the vehicle lifecycle
20 Digital and data joins up the vehicle lifecycle Vehicle Lifecycle Value New Vehicle Import 1st sale Demand forecasting/ 0-4 years % supply management Digital marketing Omni-channel fulfilment 2nd sale 4+ years % Aftersales retention Vehicle trade-in pricing 3rd sale % New / Used vehicle pricing P
Slide 21: Our global tech-capability
@ Inchcape OUR GLOBAL TECH-CAPABILITY
Slide 22: Consolidating technology onto our common global stack
22 Consolidating technology onto our common global stack Our Distribution Excellence Vehicle Lifecycle Services Growth A&A APAC Europe Digital Parts Drivers Inchcape Digital Inchcape core Single code base, globally Digital eXperience Platform Data Analytics Platform Scalable Finance Broker Engine in
Slide 23: Digital Delivery Centres (DDCs): our global 'tech hubs'
23 Digital Delivery Centres (DDCs): our global ‘tech hubs’ Cost-efficient Within the Group’s existing cost and investment envelopes Significant capacity; will not need to scale inline with the expansion of the Group Insourcing capability and reduced reliance on contractors/ 3rd parties Internal digi
Slide 24: We continue to transform our approach to digital, globally
24 We continue to transform our approach to digital, globally CMD focus areas Future Digital eXperience Platform: Complete omni-channel purchasing, and ownership our digital touchpoint experience for new and used vehicles Data Analytics Platform: Every action optimised by proprietary analytics drivi
Slide 25: Digital & data is accelerating consolidation
DIGITAL & DATA IS ACCELERATING CONSOLIDATION
Slide 26: Geely: a great example of our new OEM launch capabilities
26 Geely: a great example of our new OEM launch capabilities 2021: signed a Driving Geely new Digital was at global strategic car volumes in Chile the heart of the partnership1 to a record level launch in 2022 Plug-and-play distribution platform: straight onto DXP and DAP Large majority of marketing
Slide 27: Independent distributors find digital & data difficult
27 Independent distributors find digital & data difficult Sebastian de Carcer Juan Pablo Del Río Sir Kyffin Simpson Former President Shareholder and member Founder of Ditec of the Board of Derco Simpson Motors and ITC Ditec, like all companies, has to develop Inchcape is the undisputed leader We are
Slide 28: Leveraging technology to drive a competitive advantage
28 Leveraging technology to drive a competitive advantage OEMs Independents Focused on largest Plug-and-play Do not have the scale Group strategy markets (20:80 rule) platform (digitally to invest in digital underpinned by driven) supports investment in multi-market technology roll-out at speed and
Slide 29: Summary
@ Inchcape SUMMARY
Slide 30: Digital & data is integral to the Group's growth ambitions
30 Digital & data is integral to the Group’s growth ambitions Distribution More Excellence Customers ▪ 1+% outperformance of new car volumes ▪ Mid-to-high single digit profit CAGR + ▪ Further consolidation and expansion Improved Efficiencies Vehicle Lifecycle Services + ▪ At least double used car vo
Slide 31: Q&A
Q&A