Imperial: Leaders in Mobility

Relevance

Resilience

Credibility

• 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.

• 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.

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

• 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.

• 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.

• 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.

• 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.

• 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.

• Improve employee engagement through management communication, employee focus groups and diversity workshops.
• Ensure sensitivity to and drive diversity.

• 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.

• 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.

• 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.

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

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

• 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.

• 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 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.

• 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.

• 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.

• 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.

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• 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.

• 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 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.

• Incentivise management to ensure sustainable performance through the cycle.
• Align incentives to financial and non-financial targets, including transformation, innovation and other qualitative targets.

• 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.

• Deepen application of King IV principles and recommendations.
• Maintain and enhance robust control and risk management systems.
• Embed effective reporting processes for board visibility.

• 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.

• 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.

• Continue to identify talent and implement succession planning for the CEO, direct reports and other levels of management for the short and long term.

• 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.

• 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.