The effective operation of our business contributes to affordable vehicle ownership and supports real economic activity and quality of life.
Our ability to deliver sustainable profitable growth through the cycle and to position our business for the structural disruption in our market, underpins our ability to create value for all stakeholders over the long term.
Inputs
Financial capital
- Direct access to equity and debt markets will attract funding from equity and debt investors, whose investment decisions are influenced by analysts and credit risk assessments.
- Proceeds from property disposals freed up balance sheet capital of R1,3 billion.
- Our ability to generate cash provides us with liquidity to fund working capital and investment in growth, in alignment with our stated dividend pay-out policy.
Human and intellectual capital
- More than 18 300 employees whose level of engagement, relevant skills and diverse ideas support our ability to achieve our strategic objectives and business targets, and deliver customer satisfaction, operational excellence and innovation.
- Human capital strategy focused on being an employer of choice in our industry, to attract, develop, retain and reward high-potential individuals with the mindset, skillsets, flexibility and responsiveness for excellence and innovation, and instilling the desired high-performance, inclusive, entrepreneurial and ethical culture in Motus.
- Ensuring that our people can work effectively by simplifying reporting structures for effective delegation and accountability, supported by the ongoing implementation of reliable core data and leading practices to optimise recruitment, training and mentoring.
- Investing in developing the required future skills to deliver on our aspirations includes annual training spend of R132 million (2017: R167 million).
- Strategic focus on innovation based on OEM partnerships, understanding changing consumer behaviour and mobility trends, proprietary data and analytics, supported by an innovation hub and appropriate internal structures - to optimise current models and at the same time to design new responses to disruption.
Manufactured capital
- The properties and facilities, either owned by Motus or by others (independent dealerships and outlets) and movable assets, for example rental fleet, owned by Motus.
- National transport infrastructure and utilities required to operate.
Relationship capital
- The quality of our relationships with all stakeholders, including OEMs and customers, and our business partners including B-BBEE partners, financial services joint venture partners and technology partners.
- The quality of our relationships with regulators, governments and local communities, which protects our commercial and social licences to operate and ensures good corporate citizenship.
- Our credibility as a newly listed company determined by our compliance with JSE Listings Requirements, transparent disclosure and performing in line with market guidance.
Natural capital
- The gatekeepers of our natural capital are our customers, regulators, non-profit organisations and civil society.
- Our environmental performance is fundamental to Motus' value proposition and credibility among OEMs, customers, strategic partners and employees.
Business activities/outputs
Our participation in all aspects of vehicle ownership, use and maintenance provides the opportunity to grow the proportion of revenue and operating profit that is not vulnerable to new vehicle sales and enables us to cross-sell and leverage synergies and efficiencies across our businesses, providing protection against cyclical pressure.
Environmental impact
- Our consumption of water, to wash vehicles at dealerships and rental depots, and electricity consumption have the most material environmental impact of our business activities.
- Waste management and responsible disposal of waste oil generated from the servicing of vehicles and equipment in our business.
More information on our dealership networks, rental outlets and parts stores.
More information on our market shares per segment.
Outcomes (F2018)
Financial capital
- Turnover of R77,7 billion, 31% foreign.
- Operating income of R3,6 billion at a margin of 4,6%.
- Between 70% and 80% of operating profit in Motus is not vulnerable to short-term new vehicle sales volatility.
- Net debt/equity ratio of 50% (2017: 46%).
- Retail market share in South Africa of around 20%.
- Distributed R3,9 billion to providers of capital.
Human and intellectual capital
- Road fatalities – one (2017: 0).
- Black representation of top management in South Africa of 25% (2017: 17%).
- 58 training hours per employee (2017: 71 hours).
- 489 employees participated in a managerial programme (2017: 406).
- Recruited 128 sales cadets into the 12-month sales cadet programme.
- Created wealth per employee of R621 000.
Manufactured capital
- Closure of nine non-performing dealerships.
- Sale of 32 non-strategic properties.
- Reinvested R1,4 billion to maintain and develop operations.
Relationship capital
- Supplier and enterprise development spend of R41 million (2017: R37 million).
- Exclusive South African importer and distributor of four respected international brands.
- Distributed R1,0 billion to governments.
Natural capital
- Road fuel usage down 11%.
- Total Scope 1 and 2 CO2 emissions decreased by 11,3%.
- Water consumption of 651 648 kilolitres down 6,2%.
- Reduced electricity consumption by 9,8%.
- One environmental spill, of 140 litres of used and new oil contaminating a workshop's entire oil store.
- No fines or penalties incurred for environmental incidents during the reporting period.
- Recycled 2 431 068 litres of oil (2017: 2 679 396 litres).
Ethical leadership, governance and corporate citizenship
- Ethical corporate citizenship, which involves many aspects including fair market practices, the elimination of all forms of anti-competitive behaviour and corruption, appropriate remuneration practices, diversity and inclusion as well as community development, is an expectation instilled by the ownership of Imperial Holdings.
- A strong, diverse and independent board, with the expertise and experience relevant to strategy and the operating context within which we operate and strong governance and control principles that comply with King IV and support strategic delivery and our corporate reputation, have been achieved in the process of separation.