Defining materiality

Motus defines material issues as those factors most likely to influence the conclusions of all its stakeholders in assessing the company's ability to create value over time. In determining if an issue is material, its potential to impact strategy (opportunity and risk), performance (financial and non-financial), prospects (in the short, medium and longer term) and ultimately value creation, is considered. Material issues are forward looking and incorporate factors within and beyond leadership's control.

Linking materiality to stakeholders and capital inputs

More specifically, material issues are the factors most likely to influence the decisions of a respective stakeholder in relation to the capital inputs they provide to Motus.

  • The capital inputs, and related stakeholders, are outlined as inputs to and outcomes of the Motus business model.
Determining material issues

The following inputs informed the determination of the material issues for Motus in 2018:

  • Motus vision, mission and strategy.
  • Roundtable discussion and follow-up interviews to elicit the views and concerns of both the leadership and divisional management who manage the various components of the automotive value chain.
  • Key issues raised by stakeholder groups, including customers, business partners and OEMs, investors and the media, elicited from the relationship owners in each case.
  • Extensive engagement with shareholders, debt providers, market experts and financiers involved in the unbundling process.
  • Top business risks.
Material issues structure

The diagram below, which provides an overview of the material issues, shows the three key themes into which the material issues have been grouped.

and the table below shows the measures applied and under development, to demonstrate effectiveness in managing the underlying material issues, and the leadership priorities, which show how the material issue is being managed.

The material issues, and associated priorities, provided the basis for preparing the Motus Holdings section of the Imperial Holdings integrated annual report and supplementary sustainable development report. Given that the direct feedback of stakeholders informed the material issues and they are deemed to represent all legitimate concerns, and the strategic plans to address them over time are explicit in the priorities and the disclosure provided elsewhere in the report. We have therefore not provided a separate stakeholder table with concerns and responses, to avoid duplication.

Material issues overview



1. Deliver exceptional value to customers

2. Remain the strategic partner of choice

3. Become an employer of choice in the automotive industry

4. Apply a pragmatic and proactive approach to innovation

1. Maximise diversified earnings streams

2. Consolidate for efficiency and excellence

3. Sustain capital management discipline

4. Remunerate performance that supports strategic delivery


1. Demonstrate governance best practice

2. Deepen management credibility

3. Become an investment of choice


1. Deliver exceptional value to customers
Provide exceptional service at competitive prices across the automotive value chain.
  • Leverage best pricing and marketing from OEMs to deepen competitive position and protect market share.
  • Maximise efficiencies and leverage buying power to distribute and sell competitively priced vehicles and parts.
  • Leverage the Motus integrated value chain to procure vehicles and offer competitively priced vehicle rentals.
  • Deliver service excellence at points of sale, rental, service, repairs and maintenance.
  • Train and develop engaged employees that can provide a superior customer experience and appropriate conversations with increasingly well-informed and diverse customers.

Ensure convenient, consolidated and compelling access to all of the group's offerings.
  • Enhance customer experience by consolidating and improving Motus' online presence.
  • Maintain high dealership standards by empowering and incentivising dealership principals appropriately.
  • Showcase the evolving mobility experience through new retail formats, such as showrooms in shopping malls and virtual showrooms.
  • Leverage existing data warehouses and lakes, which currently support all direct marketing and customer relationship management initiatives across the value chain, to develop a single view of the customer across all offerings.

Maintain a unique understanding of consumer behaviour and mobility needs.
  • Understand what customers want, as their needs change, to support the delivery of relevant offerings.
  • Leverage data analytics to monitor customer behaviour and preferences.

Continue to differentiate through innovative vehicle and asset finance (VAF) solutions, VAPS and mobility service offerings.
  • Leverage understanding of OEM strategies, changing customer behaviour and mobility-related technologies to inform the development of innovative VAPS and mobility solutions for customers.
  • Apply data analytics to develop personalised services and engender loyalty (including ride sharing models).
  • Grow differentiated fleet management offerings to corporate customers with an emphasis on cutting-edge technology.

2. Remain the strategic partner of choice
Deepen OEM partnerships
  • Maintain a superior route-to-market.
  • Strengthen brand positioning through strategically located dealerships.
  • Preserve longstanding importer and retail partnerships with OEMs, providing market access through quality marketing, high levels of customer satisfaction and strategically located dealerships (in growing urban areas).
  • Work with OEMs to ensure the most relevant and competitive products and financial services offerings for the South African market.
  • Partner with OEMs on new ways of penetrating the market (eg new retail formats and technologically enabled dealerships).
  • Leverage strong balance sheet to allocate importer volume to the rental fleet, to support OEM volume targets.
Secure strategic partnerships to drive growth and competitiveness
  • Leverage financial services joint ventures (JVs) with market leaders.
  • Form B-BBEE partnerships in key market segments.
  • Form technology partnerships with developers and solution providers.
  • Partner with local distributors in selected international markets (Aftermarket Parts).
  • Proactively manage our strategic alliances to ensure that we have the appropriate partners, that our strategic objectives are aligned, and that our partners' competencies complement Motus' own capabilities.
  • Leverage Motus' specialised expertise, data and product design ability to offer relevant and innovative VAF and VAPS offerings to the large customer bases of financial services partners with established channels to market.
  • Leverage new B-BBEE partnership to grow fleet management business.
  • Seek other JV opportunities with B-BBEE partners to ensure competitiveness in certain market segments, with a holding company structure already in place to facilitate this.
  • Partner with technology developers and solution providers to gain access to highly specialised skills and cutting-edge innovation, including the opportunity to commercialise new technology.
  • In line with the forward integration of the supply chain to increase buying power, partner with local players in selective markets to facilitate lower-risk market entry into Africa for aftermarket parts.

3. Become an employer of choice in the automotive industry
Attract and retain high-calibre employees.
  • Systematically implement best people practices across the group while maintaining the necessary flexibility to ensure they can be practically and cost-effectively delivered within different divisions.
  • Ensure effective talent and performance management, and succession planning that aligns employee capabilities and expectations with business objectives and career opportunities.
  • Ensure relevant training models per division, which also promote the mindset, skillset, flexibility and responsiveness for significant change.

Ensure a strong focus on transformation and diversity.
  • Focus on transformation and diversity at management level.
  • Identify and address the barriers to transformation, and continue to build an inclusive culture.
  • Target interventions to develop and promote designated groups (black people, women and people with disabilities) and to strategically source talent externally within these groups.

Develop and empower employees and embed inclusivity and collaboration within the Motus culture.
  • Improve employee engagement through management communication, employee focus groups and diversity workshops.
  • Ensure sensitivity to and drive diversity.

4. Apply a pragmatic and proactive approach to innovation
Continually assess digital, mobility and automation trends in the markets in which Motus operates to proactively participate in disruptive change.
  • Leverage first-hand access to developments in different markets to assess the impact on business models and the expected time to implement, to inform the necessary changes.
  • Continue to ensure executives understand new technologies and their potential impact on markets.
  • Leverage IT solutions and data to drive innovation across the vehicle value chain, with the aim of securing higher market penetration in the short to medium term.

Optimise and evolve current business models while at the same time designing new solutions and operating models.
  • Ensure IT systems support efficiency, connectivity and networking across the group.
  • Align continuously with digital, mobility and automation trends and changing customer needs by working with OEMs to deliver innovative solutions and business model changes.

Focus on data science and analytics to extract value and enhance the customer experience.
  • Continue to apply proven ability to monetise proprietary data.
  • Apply insights gained from data analytics to create relevant and innovative products and services aligned to customers' mobility needs.
  • Deepen understanding of customer data to retain customers and capture market share of vehicle sales and VAPS.
  • Apply sales, service and maintenance data to accurately price VAPS, to minimise fund burn rates and maximise profitability.

Implement efficient structures to support innovation.
  • Leverage innovation hub and capabilities exchange model to facilitate innovation within all divisions.
  • Implement new innovation funding model to support R&D.

Seek opportunities to drive open innovation.
  • Identify opportunities to collaborate with key strategic partners to share intellectual property and drive innovation in line with the principles underpinning the "open economy".


1. Maximise diversified earnings streams
Optimise the profitability of each segment within the automotive value chain.
  • Maximise the organic growth potential of each division according to clearly defined divisional strategies.
  • Drive defensive, high-margin annuity income streams from financial services, workshops, imports and distribution parts businesses and aftermarket parts.
  • Defend operating margins through efficiencies and process improvements.
  • Apply sales, service and maintenance data to accurately price VAPS, to minimise fund burn rates and maximise their profitability.
Grow competitive market share and strengthen the core business by leveraging the integrated value chain.
  • Maintain unparalleled scale and footprint in South Africa.
  • Drive importer volumes to support parts sales, panel sales, workshop servicing and financial services.
  • Leverage all possible scale and operational synergies across the integrated automotive value chain.
Pursue strategic growth in selected international markets.
  • Pursue acquisitions in selected markets that complement existing networks and benefit from the transfer of existing expertise.
  • Target a significant proportion of hard currency earnings (20% to 25%) from international operations.
Leverage data and expertise to expand value-added product offerings and services.
  • Drive growth in Motor-Related Financial Services, by unlocking efficiencies and customer potential within existing and new channels, and exploring and developing new partnership opportunities.
2. Consolidate for efficiency and excellence
Centralise and standardise systems and processes only where appropriate to enable business agility.
  • Continue to drive operational alignment and collaboration across the value chain to reduce complexity, duplication, costs and capital employed, building on the extensive optimisation of recent years.
  • Simplify IT architecture to support efficiency, connectivity and networking across the group and share common infrastructure and access across businesses where appropriate.
  • Implement a suite of standard IT policies, focusing on IT security and reporting.
  • Simplify reporting structures and consolidate back-office functions, including centralising shared services (ongoing).
  • Maintain business continuity processes to ensure business operations are stable and unaffected by outages and disaster recovery is in place.

Enforce sound internal process governance, risk management and approval structure.
  • Ensure operational governance standards are met, supported by a well-developed control environment, risk management and deep expertise in finance, treasury and accounting.
  • Maintain effectiveness of controls in place to monitor and manage currency risk, including the application of the forward cover policy.
  • Ensure data security and proprietary systems are fit-for-purpose.
3. Sustain capital management discipline
Enhance profitability, ROIC and cash flow generation to support a consistent dividend pay-out rate.
  • Allocate capital to organic and acquisitive growth strategies that achieve the targeted returns.
  • Achieve targeted revenue and margin growth and maintain sound financial leverage ratios.
Maintain working capital management discipline.
  • Streamline distribution (vehicles and aftermarket parts) to effectively manage inventory levels and improve working capital management in a low growth economic environment.
  • Maintain healthy liquidity ratios.
Continue to optimise the portfolio.
  • Continue to optimise the portfolio by exiting or disposing of non-strategic dealerships and businesses that do not enhance competitive advantage or show low return on effort.
  • Align investment philosophy to strategic intent.
  • Invest in key regions to ensure a strong presence in the chosen markets.
4. Remunerate performance that supports strategic delivery
Align incentives to strategic objectives.
  • Incentivise management to ensure sustainable performance through the cycle.
  • Align incentives to financial and non-financial targets, including transformation, innovation and other qualitative targets.


1. Demonstrate governance best practice
Establish a credible reputation for ethical, effective and independent leadership.
  • Demonstrate independence and effectiveness of the board.
  • Formulate board succession plans to ensure relevant skills and experience in relation to strategy.
  • Continue to embed and enhance ethical practices and governance standards.

Maintain best governance practices (instilled as part of Imperial Holdings' legacy).
  • Deepen application of King IV principles and recommendations.
  • Maintain and enhance robust control and risk management systems.
  • Embed effective reporting processes for board visibility.
Establish corporate citizenship credentials
  • Comply with laws and regulations across multiple jurisdictions, and demonstrate consistently ethical business conduct.
  • Demonstrate defensible safety practices, socioeconomic value creation and environmental stewardship.
  • Manage the complexity and cost impact of regulations and fiscal policy, for example the impact of international privacy regulations.
  • Monitor and engage with regulators on upcoming legislation, for example Right to Repair regulations in South Africa, and assess the potential impact on operations for risk and opportunities.
  • Embed an ethical culture, supported by a code of ethics, and ethics training and awareness initiatives.
  • Embed safety practices and mindset in the right areas (road safety to avoid fatalities, and operational health and safety in workshops).
  • Support socioeconomic development initiatives, including partnering with black entrepreneurs in the workshop market, enterprise and supplier development programmes and corporate social investment programmes which support basic education, youth development and road safety.
  • Responsibly manage natural resources in line with national priorities, legislative requirements and municipal by-laws, including water restrictions in the Cape region.

2. Deepen management credibility
Strengthen relationships with all key stakeholders.
  • Maintain high standards of accountability, transparency and integrity in running the business and reporting to shareholders and other stakeholders.
  • Ensure responsiveness to the legitimate concerns of all stakeholders through accurate and transparent disclosures.
Ensure effective succession planning to ensure management depth.
  • Continue to identify talent and implement succession planning for the CEO, direct reports and other levels of management for the short and long term.

Deepen the desired high-performance, entrepreneurial, collaborative and inclusive culture.
  • Maintain high performance, in view of the additional scrutiny from stakeholders and direct accountability to the market as a listed entity.
  • Improve employee engagement through management communication and modelling the desired culture.
  • Ensure sensitivity to and drive diversity.
3. Become an investment of choice
Retain current investors both locally and internationally.
Attract new pool of investors supportive of long-term strategic direction.
  • Deliver on the vision and related strategic objectives of market leadership, driving innovation, improving operational excellence, investing in human capital and change management, and portfolio optimisation.
  • Deliver the investment proposition:
    • Defend and grow leading market share in South Africa, increase exposure to annuity income streams, and grow in selected international markets.
    • Sustain high cash generation and strong free cash flows.
    • Deliver best-in-class earnings and targeted returns
  • Maintain a consistent dividend pay-out through the cycle.