Full Annual Report - Inchcape
Full Annual Report - Inchcape Full Annual Report - Inchcape
Business review Strategy Operating review continued South Asia Brand partners Koh Ching Hong Managing Director Inchcape South Asia The South Asia segment contains the Group’s VIR operations in Singapore and Brunei. Key financial highlights Contribution to Group sales Contribution to Group profit Financial highlights Year ended Year ended % change 31.12.2009 31.12.2008 in constant £m £m % change currency Sales Distribution 548.2 536.0 2.3% (11.7)% Like for like sales Distribution 548.2 535.9 2.3% (11.7)% Trading profit Distribution 55.9 63.0 (11.3)% (23.4)% Like for like trading profit Distribution 55.9 62.9 (11.1)% (23.3)% Trading margin Distribution 10.2% 11.8% (1.6)ppt (1.6)ppt Cash generated from operations Distribution 71.6 67.9 5.4% 9.8% 28.8% Sales £548.2m 2.3%* 2008: £536.0m Trading profit £55.9m 11.3%* 2008: £63.0m Operational highlights for the year • Strengthened our market leadership position and gained 3.7ppts to 21.4% market share • Innovative marketing programmes drove excellent aftersales performance *at actual exchange rates More online at www.inchcape.com/ourbusinessmodel/regions 30 Inchcape plc ¦ Annual Report and Accounts 2009
Section One Business review The market In Singapore, the market declined against the previous year by 27.9%, due in part to the continued slowdown in de-registrations, reduced quota levels from the Singapore government and consistently higher Certificate of Entitlement prices throughout the year. Parallel importers share of the market declined by 10.8ppts against 2008. The Brunei vehicle market fell by 5% in 2009. Business model and strategy In Singapore, Inchcape is the distributor for Toyota, Lexus, Hino Trucks and Suzuki.We have represented Toyota in Singapore since 1967 and been Singapore’s market leading retailer by sales for seven consecutive years since 2002.We have held the Suzuki distribution franchise since 1977. In Brunei we are the distributor and retailer for both Toyota and Lexus. Outlook for 2010 2010 will be another challenging year in Singapore.We expect the market to continue its decline as a result of the lower quota sizes announced in October 2009 by the Singapore government and the expected continued slowdown in de-registrations. Our priority will be to strengthen our market leadership position by capitalising on new product launches and special editions and continue to outperform the aftersales market through enhanced customer management. Franchised retail centres 10 Our operating performance Inchcape strengthened its market leading position and grew market share by 3.7ppts, to achieve a market share of 21.4%.This was largely driven by new products, the effectiveness of our value for money marketing programmes and the weakening of parallel importers due to the strengthening of the Yen versus the Singapore Dollar. Aftersales outperformed the market through targeted marketing programmes for vehicles out of warranty. Our business in Brunei performed well retaining its market leading position. Sales fell 11.7%, but in actual terms sales grew by 2.3% resulting in a trading profit of £55.9m. Cash generated from operations for the region was 5.4% above 2008 at £71.6m, driven by working capital reductions. www.inchcape.com 31
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Section<br />
One<br />
Business<br />
review<br />
The market<br />
In Singapore, the market declined against<br />
the previous year by 27.9%, due in part to<br />
the continued slowdown in de-registrations,<br />
reduced quota levels from the Singapore<br />
government and consistently higher<br />
Certificate of Entitlement prices throughout<br />
the year. Parallel importers share of the<br />
market declined by 10.8ppts against 2008.<br />
The Brunei vehicle market fell by 5% in 2009.<br />
Business model and strategy<br />
In Singapore, <strong>Inchcape</strong> is the distributor for<br />
Toyota, Lexus, Hino Trucks and Suzuki.We<br />
have represented Toyota in Singapore since<br />
1967 and been Singapore’s market leading<br />
retailer by sales for seven consecutive years<br />
since 2002.We have held the Suzuki<br />
distribution franchise since 1977.<br />
In Brunei we are the distributor and retailer<br />
for both Toyota and Lexus.<br />
Outlook for 2010<br />
2010 will be another challenging year in<br />
Singapore.We expect the market to continue<br />
its decline as a result of the lower quota<br />
sizes announced in October 2009 by the<br />
Singapore government and the expected<br />
continued slowdown in de-registrations.<br />
Our priority will be to strengthen our market<br />
leadership position by capitalising on new<br />
product launches and special editions and<br />
continue to outperform the aftersales market<br />
through enhanced customer management.<br />
Franchised retail centres<br />
10<br />
Our operating performance<br />
<strong>Inchcape</strong> strengthened its market<br />
leading position and grew market share<br />
by 3.7ppts, to achieve a market share of<br />
21.4%.This was largely driven by new<br />
products, the effectiveness of our value for<br />
money marketing programmes and the<br />
weakening of parallel importers due to<br />
the strengthening of the Yen versus the<br />
Singapore Dollar.<br />
Aftersales outperformed the market<br />
through targeted marketing programmes<br />
for vehicles out of warranty.<br />
Our business in Brunei performed well<br />
retaining its market leading position.<br />
Sales fell 11.7%, but in actual terms sales<br />
grew by 2.3% resulting in a trading profit<br />
of £55.9m.<br />
Cash generated from operations for the<br />
region was 5.4% above 2008 at £71.6m,<br />
driven by working capital reductions.<br />
www.inchcape.com 31
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