Full Annual Report - Inchcape
Full Annual Report - Inchcape Full Annual Report - Inchcape
Business review Strategy Group Chief Executive’s strategic review continued Uniquely positioned for the future I believe that the future for Inchcape, its employees, brand partners and shareholders is very exciting. While we remain cautious about the timing of the market recovery, we certainly believe that no competitor is better placed than Inchcape, both to weather any continuing impact of the downturn and to grasp the opportunities that recovery will bring. We consider Inchcape to be uniquely positioned worldwide to take advantage of the global upturn for a number of reasons. We are one of the most international of FTSE 350 listed retailers, having delivered 83% of trading profit outside of the UK in the last six years. Our diversified geographic portfolio has scale businesses in 26 developed and emerging markets and we are a leader in 14 of these. Our resilient business model, with distribution and retail channels,differentiating Customer 1st strategy and empowered management has a proven track record. Our portfolio of the world’s strongest automotive brands consistently outperforms the industry. Our balance of revenue streams provides us with both growth opportunities and recurring aftermarket income. Our leading, customer-centric operational processes introduced with our Inchcape Advantage programme,have improved our competitive position globally. Our competitive position has grown stronger over the last year, both in terms of customer service and market share, providing us with an excellent growth platform for the future. We expect customer demand for greener technology to drive vehicle replacement in developed markets and we are partnered with manufacturers committed to investing in the newest technology and greener vehicles. In the emerging markets, where we have scale operations and the car ownership levels are relatively low, the increase in wealth will grow demand. We believe consolidation of a fragmented market to be inevitable. Inchcape will benefit from increased market share and the desire of manufacturers to seek new retail or distribution partners with the strongest companies.We have the financial firepower to invest in the best strategic opportunities to give us and our brand partners access to markets with strong future wealth and growth potential. We outperformed the market in 2009. I believe that we will continue to outperform our competitors in 2010 and that Inchcape is uniquely positioned worldwide to benefit from the global market recovery in 2011 and beyond. André Lacroix Group Chief Executive 4 Uniquely positioned for the future We are well placed to take advantage of the economic upturn. Our unique business model,long-standing brand partner relationships,diverse geographic presence, financial strength, scale operations, decentralised and empowered organisation are our key strategic assets. 18 Inchcape plc ¦ Annual Report and Accounts 2009
Superior customer service driving growth in sales and aftersales Inchcape Advantage processes deliver consistent,superior customer experience to drive growth in vehicle sales and aftersales. Growth opportunities in mature markets Increase in demand for greener / low cost of usage vehicles will accelerate the replacement cycle in mature markets. Section One Business review Growth opportunities in emerging markets* Financial firepower to take advantage of consolidation Wealth increase and low levels of car ownership will grow demand in emerging markets 2004-2014 compound annual growth rate 5.0% 4.0% 3.0% 2.0% 1.0% 0 *Source Global Insight Low growth, high car ownership: N. America, W. Europe 0 High growth, low car ownership: Asia, S. America, E. Europe 100 200 300 400 500 600 2009 Cars per 1,000 population Inchcape is in a unique position as a well financed global operator with a strong track record to take advantage of scale expansion opportunities at the right time in the right markets. *At swap foreign exchange rates Committed facilities £980m* Forecast global sales 85 Global car sales forecast to grow over 30% between 2009 and 2014* 80 75 +30% 70 Millions 65 60 55 50 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 *Source Global Insight www.inchcape.com 19
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Superior customer service driving growth<br />
in sales and aftersales<br />
<strong>Inchcape</strong> Advantage<br />
processes deliver<br />
consistent,superior<br />
customer experience<br />
to drive growth<br />
in vehicle sales<br />
and aftersales.<br />
Growth opportunities in mature markets<br />
Increase in demand<br />
for greener / low cost<br />
of usage vehicles<br />
will accelerate the<br />
replacement cycle<br />
in mature markets.<br />
Section<br />
One<br />
Business<br />
review<br />
Growth opportunities in emerging markets*<br />
Financial firepower to take advantage<br />
of consolidation<br />
Wealth increase and low levels of car ownership will grow<br />
demand in emerging markets<br />
2004-2014 compound annual growth rate<br />
5.0%<br />
4.0%<br />
3.0%<br />
2.0%<br />
1.0%<br />
0<br />
*Source Global Insight<br />
Low growth, high car ownership:<br />
N. America, W. Europe<br />
0<br />
High growth, low car ownership:<br />
Asia, S. America, E. Europe<br />
100 200 300 400 500 600<br />
2009 Cars per 1,000 population<br />
<strong>Inchcape</strong> is in a<br />
unique position as<br />
a well financed<br />
global operator with<br />
a strong track record<br />
to take advantage<br />
of scale expansion<br />
opportunities<br />
at the right time<br />
in the right markets.<br />
*At swap foreign exchange rates<br />
Committed facilities<br />
£980m*<br />
Forecast global sales<br />
85<br />
Global car sales forecast to grow over 30% between 2009 and 2014*<br />
80<br />
75<br />
+30%<br />
70<br />
Millions<br />
65<br />
60<br />
55<br />
50<br />
2004<br />
2005<br />
2006<br />
2007<br />
2008<br />
2009<br />
2010<br />
2011<br />
2012<br />
2013<br />
2014<br />
*Source Global Insight<br />
www.inchcape.com 19
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