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| Logistics |
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Car rental and tourism |
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| Imperial Logistics remains the leading logistics provider in southern
Africa, offering integrated solutions to a diverse range of large and
small customers. Offshore, our logistics operations are housed in
Imperial Logistics International, which provides complete logistics
solutions from parts distribution, just-in-time component delivery,
and warehousing, to inland waterway shipping, trucking, container
handling and related value-added services. |
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With over 130 locations across southern Africa and prime positions
at all major airports, Imperial’s rebranded Europcar is a prominent
force in the car rental market while Tempest has become a trusted
brand in the low-cost car rental market. Car rental services are
supported by the largest used car dealer network in South Africa.
Wholly owned tourism interests include inbound tour operations
and niche tourism services. |
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| In the review period |
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In the review period |
- Domestic and offshore logistics contributed 34% of group
revenue and 42% of operating profit despite challenging
trading conditions
- Strategic acquisitions during the year have deepened
divisional capabilities and skills, locally and offshore
- Focus on complementary services that provide annuity
income was formalised in a new division for southern African
operations
- A dramatic second-half reversal in trading conditions in
international operations was countered by cost
and margin management
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- The decline in inbound travellers and used car sales resulted
in slightly lower revenue although margins were largely
maintained
- The successful Europcar rebranding has raised the profile,
with expected long-term benefits
- Acquisitions have expanded footprint and capacity
- Tourism businesses benefited from sporting events and are
well-positioned for 2010 opportunities and beyond
- We decided to pursue scaleable opportunities in the tourism
sector that will amplify our leading position in inbound
operations and coach touring
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| Outlook |
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Outlook |
- The southern African logistics industry is expected to remain
under pressure for most of the 2010 financial year, although
adequate business activity should support satisfactory returns.
- Conditions in Europe remain tough. However, rising commodity
prices indicate growing demand by global manufacturers which
should increase activity in Imperial Logistics International.
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We expect a slow but sure recovery in the international inbound
tourism market and business travel, while the FIFA World Cup will
provide further stimulus in the first part of 2010. However, we will
not build significant capacity for this event alone, although higher
utilisation and better margins are expected. |
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| Vehicle retailing |
| Through the distributorships, dealerships and insurance divisions, Imperial has built a unique, comprehensive motor retail organisation
that captures the value chain from factory gate to end-user financial services. Imperial divisions represent virtually all makes of passenger
and commercial vehicles, and many motor cycle brands, nation-wide and internationally |
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| Distributorships |
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Dealerships |
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Insurance |
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| The division imports and distributes
a range of passenger and light and
heavy commercial vehicles, automotive
products and motorcycles for principals in
Asia, Europe and the United States. It also
retails Ford passenger cars in Australia.
In addition to a fast growing auto parts
distribution business, Imperial’s aviation
business, National Airways Corporation,
the leading general aviation sales and
services organisation in the region, is
housed in this division. |
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Imperial owns the largest network of
motor dealerships in South Africa and
represents all major original equipment
manufacturers (OEMs). While its core
business remains selling and servicing
vehicles, the division has diversified its
income to include secondary sources
that provide an important counterbalance
to vehicle retail activities. |
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The group’s niche insurance operations
are focused on a range of short-, medium-and
long-term insurance and assurance
products. These are predominantly
associated with the automotive market,
and are sold through motor dealers and
on behalf of finance institutions. |
| In the review period |
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In the review period |
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In the review period |
- In an extremely weak motor market,
cutting costs and closing unprofitable
operations protected margins and
limited the decline in revenue
- Revenue from services was maintained,
in line with the group strategy
of focusing on service operations
- Australian dealerships recorded net
profit after interest
- Good results from aircraft sales
activities
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- Extremely difficult year for vehicle
sales, especially the second half
when the total market declined by
34%, while the commercial vehicle
market shed 49% of its sales
volumes
- New flagship dealerships performed
well while 23 unprofitable outlets
were closed during the period
- Revenue from services higher
despite decline in total revenue
- UK and Swedish dealerships were
profitable after interest
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- The short-term and life businesses
were merged under the Regent
brand, combining the best of their
resources and infrastructure, and
resulting in estimated annualised
savings of R35 million
- Gross premium income was 10%
higher, while the underwriting result
was nearly four times better than
last year
- The capital base was strengthened,
lifting solvency margins and the
capital adequacy ratio to well above
minimum regulatory levels
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| Outlook |
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Outlook |
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Outlook |
| While motor vehicle retailing activities
have started to benefit from cost savings,
we expect vehicle sales to remain weak
in the year ahead. Given that entry-level
vehicles were most affected by the
scarcity of bank credit, any improvement
in credit availability will benefit this market. |
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The dealer portfolio is being constantly
improved through rationalisation and
modest expansion into areas that offer
better trading prospects. This will position
the division well when conditions in the
motor market improve. |
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Underwriting results will be maintained
and investment results are expected to
improve. The lower equity content in the
portfolios will provide more stability to the
performance of this division. |
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Directors and executive committee
Non-executive directors |
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| 1. |
Thulani Sikhulu Gcabashe (51)*
BA (Botswana), MURP (Ball State Univ,
USA), PED, IMD Lausanne
Thulani is the retired chief executive of
Eskom and is now the executive chairman
of BuiltAfrica Holdings. He currently serves
as a director of Standard Bank Group,
The Standard Bank of South Africa and
the National Research Foundation. He is a
former trustee of the Freedom Park Trust.
He was appointed to the board in January
2008 and as chairman in April 2008. |
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4. |
Michael John Leeming (65)*
BCom, MCom, FCMA, FIBSA, AMP
Mike is a former executive director
of Nedcor Limited. He has served as
chairperson of the Banking Council of
South Africa and president of this country’s
Institute of Bankers. He is currently a nonexecutive
director of the Altron Group,
AECI, Woolworths and Real Africa
Holdings. He was appointed to the board
in November 2002. |
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Roderick John Alwyn Sparks (50)*
BCom (Hons), CA(SA), MBA
Roddy is a former managing director of
Old Mutual South Africa and Old Mutual
Life Assurance Company (SA) and former
chairperson of Old Mutual Unit Trust, Old Mutual Specialised Finance and Old
Mutual Asset Managers (SA). He is a
director of Worldwide African Investments
and a non-executive director of Trencor
and serves on the board of governors of
the UCT Graduate School of Business. He
was appointed to the board in July 2006. |
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| 2. |
Schalk Engelbrecht (63)*
BSc, MBL, AMP Insead
Schalk is the previous chief executive
officer of AECI and is currently a nonexecutive
director of that company. He
was appointed chief executive of AECI in
2003, having joined the AECI board as
an executive director in 2002. He was the
managing director of Chemical Services
(Chemserve) before joining the AECI
board. He was appointed to the board in
June 2008. |
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James Roy McAlpine (68)*
BSc, CA
Roy is a former executive director of
Liberty Life. He is currently a non-executive
director of African Rainbow Minerals
and Hyprop Investments, and is a past
chairperson of the Association of Unit
Trusts of South Africa. He was appointed
to the board in August 1998. |
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8. |
Ashley (Oshy) Tugendhaft (61)
BA, LLB
Oshy is the senior partner of Tugendhaft
Wapnick Banchetti & Partners, a leading
Johannesburg niche law firm and a
non-executive director of African Bank
Investments Limited and Pinnacle
Technology Holdings Limited. He was
appointed to the board in April 1998 and
as deputy chairman in March 2008. |
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| 3. |
Phumzile Langeni (35)*
BCom (Acc)
Phumzile is the executive chairperson of
Afropulse Group, a woman-led investment,
investor relations and corporate advisory
house. She was the economic advisor
to the then Honourable BP Sonjica, then
Minister of Minerals and Energy (DME).
Phumzile was previously an executive
director of junior platinum miner, Anooraq
Resources, is the chairman of Astrapak
and an independent non-executive
director of Massmart Holdings Limited,
Mineworkers’ Investment Company,
Peermont Global, Transaction Capital and
the Port Regulator. She was appointed to
the board in June 2004. |
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Mohammed Valli Moosa (52)
BSc
Valli is non-executive director of Sanlam
and Anglo Platinum. He is the nonexecutive
chairman of Sun International
and executive chairman of Lereko. He is
the former president of the International
Union for the Conservation of Nature
and is currently a member of the Global
Leadership for Climate Action. He is the
former chairman of Eskom and served
as a cabinet minister in the National
Government. He was appointed to the
board in June 2005. |
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Younaid Waja (57)
BCom, BCompt (Hons), CA(SA), H Dip
Tax Law
Younaid is a practising tax and business
consultant. He is a non-executive director
and a sub-committee member of the:
Public Investment Corporation Limited
(PIC), Pareto Limited, Blue IQ Investment
Holdings (Pty) Limited, Supplier Park
Development Company (Pty) Limited and
Lefatshe Technologies (Pty) Limited. He is
a former vice-president of the Association
for the Advancement of Black Accountants
in Southern Africa (ABASA) and a former
member of the Income Tax Special Court.
He is also a former chairperson of the
Public Accountants and Auditors Board
(PAAB), now the Independent Regulatory
Board of Auditors (IRBA). He was
appointed to the board in June 2004. |
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| 10. |
Hubert Rene Brody (45)
BAcc (Hons), CA(SA)
Hubert is the chief executive of Imperial.
Hubert joined the group in April 2000 as
chief financial officer of Imperial Bank.
He was appointed chief executive of the
motor division in 2003. He joined the
executive committee in September 2004,
was appointed to the board in August
2006 and as chief executive on 4 July
2007. |
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Manuel Pereira de Canha (59)
Manny is the chief executive of Associated
Motor Holdings, responsible for the
import and distribution of motor vehicles.
He joined the group in 1996. He was
appointed to the board in November 2002. |
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Abdul Hafiz Mahomed (58)
BCompt (Hons), CA(SA), HDip Tax
Hafiz is the deputy chief executive and
the group financial director. He joined the
group as financial manager in 1982 and
was appointed to the board in March
1992. |
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| 11. |
Osman Suluman Arbee (50)
BAcc, CA(SA), HDip Tax
Osman is the CEO of the car rental
division and chairman of the tourism,
motor dealership and automotive parts
distribution divisions. He is a director of
Distribution and Warehousing Network
(DAWN) Limited, Imperial Bank Limited
and Ukhamba Holdings (Pty) Limited, the
group’s empowerment partner. He joined
the group and the executive committee in
September 2004 and was appointed to
the board on 4 July 2007. |
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Recht Louis (Tak) Hiemstra (53)
BCompt (Hons), CA(SA)
Tak is the executive director, strategic
development of the group. He is
responsible for investor relations,
strategy, and enterprise and business
development. He joined the group in
1992 and was appointed to the board
in August 1995. |
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Gerhard Wessel Riemann (62)
Gerhard is the chief executive of Imperial
Logistics International in Germany and
is responsible for logistics operations
in Europe. He joined the group and the
board in January 2000. |
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Executive committee members |
| 16. |
Marius Swanepoel (48)
BCom Acc (Hons)
Marius is the chief executive of Imperial
Logistics in southern Africa. He joined
the group in 1994 as financial director of
Highway Carriers and was appointed chief
executive of Imperial Logistics in southern
Africa in October 2005. He was appointed
to the executive committee in May 2007. |
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Berenice Joy Francis (33)
BCompt (Hons), CIA
Berenice is the executive responsible
for risk, transformation and people
development. She has extensive risk
management experience and joined the
group in 2008. She was appointed to the
executive committee in June 2009. |
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Moeketsi Mosola (48)
Moeketsi is the chief executive of the
tourism division. He was previously CEO
of SA Tourism. He joined the group in
2009 and was appointed to the executive
committee in July 2009. |
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David Drury Gnodde (51)
BCompt (Hons), CA(SA)
David is the chief executive of the Regent
group which houses the insurance
operations of Imperial. He was previously
the COO and an executive director of PPS
and joined the Imperial group in 2009. He
was appointed to the executive committee
in June 2009. |
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