Remembering our past

History of Imperial

                 
   Logistics in southern Africa and Europe Car rental and related tourism services Motor and Financial services
         Dealerships  Distributorships  Financial services 
2009     Disposal of Tourvest
Rebrand Imperial Car 		         
2008  Advanced logistical
services 		 Rental to Europcar     Closure of truck import business  Merger of Regent Insurance and Regent Life 
2007                
2005        Jurgens Caravans     Flagstone Re Africa 
2001        Beekman Canopies  Parts distribution    
2000  Supply chain services  Diversified tourism (Tourvest)         
1999           Acquisition of NAC Truck import assembly    
1998  European acquisition             
1996  Full service logistics        Car import and distribution  Banking Life insurance 
1994        True multi-franchise
dealer group 		      
1993                
1991     Coach touring  Mercedes-Benz dealership       
1990                
1989  Warehousing             
1988     Airport concessions          
1987     Hertz merger        Short-term insurance 
1981                
1979  Transport  Launch of Imperial Car Rental          
1975  Truck rental             
1973  Truck retailing     Toyota dealership       
1948        1948 – 1973 used car and Chrysler dealerships       

Our strengths in the market place are built on:

  • our compelling value proposition
  • our balanced exposure to the corporate and consumer sectors
  • the stability derived from our sound financial position
  • our entrenched market presence

These four key factors keep our businesses at the forefront of their industries. They provide the momentum for our growth and the sustainability of the leadership positions that we occupy. They provide comfort to our suppliers and customers and prolong the mutually rewarding business relationships that we have with them. They also instil pride in our employees to build on the sound foundations that have been laid over the long and productive years of our history.

We are constantly Building

        
     
  

Our history shows that building a business of considerable scale and significance has always been our driving force. In the past two years, we have reduced the scale and diversity of the group in accordance with economic circumstances and our capacity as an industrial group. These actions were well timed and executed with a view to preserving of long-term shareholder wealth.

We now have a group that is focused on the industries that we have selected because of our firm belief in their long-term sustainability and according to our trusted expertise. Our rich history in the markets we have chosen will reward our endeavours to maximise the returns on our economic and human capital.

The development of our human capital was a top priority in the past two years during which the group was restructured. Skills development was promoted at all levels of the group, including for prospective employees who will qualify as artisans and be available to serve not only our needs but also those of the southern African business community.

In pursuit of excellence and good corporate citizenship, we have adopted nine unifying principles for behaviour in what we call “The Imperial Way”.

These principles are:

  • a commitment to quality service
  • people development
  • the encouragement of intelligent entrepreneurship and prudent risk taking
  • good communication and transparency
  • pursuit of sound capital management and financial strategy
  • performance management
  • support and loyalty to colleagues and sister companies
  • rallying around our brand
  • social and environmental responsibility
 

Continuing operations

        
Revenue 2009  Operating profit 2009  Profit before exceptional items 2009 
        
Revenue 2008  Operating profit 2008  Profit before exceptional items 2008 
        

On our strong foundations

Profile

Imperial is a diversified multinational industrial services and retail group with activities spanning logistics, car rental and tourism, vehicle retailing and related financial services. While capitalising on the synergies between our business entities, our decentralised management structure actively encourages entrepreneurship, innovation and industry-specific best practices.

The group operates through five divisions: logistics in southern Africa and Europe, car rental and tourism, vehicle, parts and aircraft distributorships, vehicle dealerships and insurance.

Imperial is active in South and southern Africa, selected parts of Africa, Europe, the United Kingdom and Australia.

A brief overview of Imperial Holdings Limited

The genesis of the modern Imperial group stretches back to the years just after World War II, to a used car and Chrysler dealership. With the arrival of a young Irish immigrant in the 1970’s the long and steady process of expanding Imperial Motors began. When Imperial listed in 1987, the business was worth R35 million. Today, that figure is R12 billion. Over the decades, Imperial has weathered many economic cycles – while meeting the changing needs of its customers through focus and foresight.

Revenue (R billion)
Profit before tax and exceptionals (R million)
Headline earnings per share (cents)
Total assets (R billion)

Financial and operational features

  • HEPS from continuing operations 13% higher to 698 cents
  • Cash generated by continuing operations 43% higher to R5,2 billion
  • Revenue from continuing operations 7% lower to R52,2 billion
  • Operating profit 16% lower to R2,5 billion
  • Strong balance sheet
  • Total annual dividend of 200 cents per share
           
         % 
FINANCIAL SUMMARY  2009  2008  change 
Revenue (Rm)*  52 219  55 927  (7)
Operating profit (Rm)*  2 453  2 923  (16)
Profit margin (%)*  4,7  5,2    
Profit before tax and exceptional items (Rm) *  2 104  2 113  – 
Headline earnings attributable to shareholders (Rm) *  1 294  1 142  13 
Headline earnings per share (cents) *  698  615  13 
Distributions to shareholders (cents) 200  245  (18)
Cash generated by operations (Rm) *  5 187  3 633  43 
Return on equity (%) **  13,4  10,3    
Total assets (Rm) 33 315  37 932  (12)
Net asset value per share (cents) 4 820  4 732  2 
Market capitalisation at closing prices (Rm) 12 367  11 190  (2)
           
*  Continuing businesses only
 
**  Impacted by unbundling leasing and capital equipment division, closure and sale of businesses.
 

Strategies

  • Measurement of and focus on the return on invested capital at group, divisional and company level.
  • Extend the suite of services rendered to logistics clients.
  • Extend the logistics theme to include asset-light, knowledge-based operations and industrial businesses with strong logistics functions.
  • Expand the geographic and multi-modal footprint of Imperial Logistics International.
  • Focus international strategy around existing investments, emphasising logistics and freight operations.
  • Sharpen the performance of the car rental business in fleet utilisation, brand focus, marketing and yield management.
  • Investigate and pursue scaleable opportunities in the tourism sector
  • Cost-efficient management of the motor retail businesses with an extension of non-OEM products.
  • Strengthen the sustainable profit base of the insurance operations by improving efficiency and products.
  • Maximise downstream profits from vehicle retailing.