Imperial is active in three major areas of mobility: – Consumer and industrial logistics, vehicle importing, distribution, dealerships, retail, rental and aftermarket parts and vehicle-related financial services. The group is managed through five operating segments – Logistics Africa; Logistics International; Vehicle Import, Distribution and Retail; Vehicle Retail, Rental and Aftermarket Parts; Insurance and Motor-related Financial Services. These segments are the basis on which the executive committee allocates resources, measures performance and exercises control and governance.

Arising from the imperative to eliminate complexity and to reflect the new management structure, the Other Segment, which previously comprised Car Rental and Aftermarket Parts, has been combined with the Automotive Retail division. The combined segment is now referred to as Vehicle Retail, Rental and Aftermarket Parts. Prior year’s comparatives have been restated accordingly.

The principal services and products provided by each of the segments are:

LOGISTICS
Logistics Africa

This segment comprises logistics businesses within South Africa and the rest of Africa. In South Africa this entails logistics services across the entire supply chain to clients that span almost every industry. In the rest of Africa, this has evolved beyond conventional supply chain management to include route-to-market solutions.

Logistics International

This segment comprises the European logistics businesses, which provide complete logistics solutions, including contract logistics, warehousing, inland waterway shipping, contract manufacturing in the chemical industry and related value-added services across European markets. The division is a leading logistics partner to the automobile, steel, aluminium, paper and chemical industries. During the year, inland waterway shipping commenced in South America.

VEHICLES
Vehicle Import, Distribution, Retail and Dealerships

This segment imports and distributes a range of passenger and commercial vehicles, industrial equipment and motorcycles. Vehicles are retailed through vehicle dealerships in South Africa and Australia. In the rest of Africa, the division is targeting the distribution of vehicles with a focus on right-hand drive markets which can be accessed from its South African base. The South African dealerships are distribution channels for the Group’s financial services, insurance, vehicle servicing and parts businesses.

Vehicle Retail, Rental and Aftermarket Parts

This segment’s extensive network of franchised vehicle dealerships is the largest in South Africa. Dealerships are also distribution channels for the group’s financial services, insurance, vehicle servicing and parts businesses. In the commercial sector, this segment owns and operates standalone commercial dealerships in South Africa and the United Kingdom. It also manufactures and sells caravans, canopies and accessories, rents vehicles in Southern Africa, operates the largest pre-owned motor vehicle dealer network in South Africa, as well as panelshops that repair vehicles in the rental fleet, the consumer market and insurance companies. The aftermarket parts business is involved in the wholesaling and distribution of motor vehicle parts and accessories.

FINANCIAL SERVICES
Insurance

This segment is a provider of motor-related, value-added insurance products for both passenger and commercial vehicles. Motor-related products are distributed through dealer and vehicle finance channels. Approximately one third of its business originates through Imperial dealerships, with the balance through independent dealerships, original equipment manufacturers (OEM) partnerships and call centres. The division also supplies life insurance products in the emerging market, which are distributed through independent brokers and increasingly through affinity schemes.

Motor-related financial services and products

This segment comprises the creation and sale of service, maintenance and extended warranty products associated with the automotive market and profit shares from alliances on the sale of financial services and commission factoring operations. Other businesses accounted for in this segment are: Ariva, which provides long term vehicle rental solutions and Imperial Fleet Management (IFM), an alliance with WesBank, which provides full maintenance leasing (FML) and other fleet management solutions to corporate, parastatal and SMME clients.