Motus Holdings Limited (MTH) Earnings Call Transcript & Summary

Good morning, everyone. Nice to see you guys after 2.5 years in COVID, talking to a screen in Sandton at Bastion and not seeing you guys and not talking to you guys. So for those that do, you're brave enough to make it this morning. Thank you for joining us. I know there was uncertainty about whether there will be a strike or no strike and things like that. I think that's going to be history. But thank you for joining us. We really appreciate it. And I see we've got someone here from PwC. We've got the bankers here. I've seen 2 or 3 bankers now. I can see the bankers sitting next to the treasurer there. So nice to see the bankers here. And then I've got my ExCo members here. So the people that will be talking today will be -- maybe I need to get to the agenda as well. Right, so the people that will be talking to you. Kerry will talk about innovation and technology. And then Corne will talk about the dealerships and what they're doing there and on the rental side. And then you've got Niall Lynch, who's talking about the importers. And then you've got Malcolm, who's talking about Aftermarket Parts. And then Ockert will talk about the financial guidance. And hopefully, we'll wrap up with myself and Nizam talking about the dealerships, and then Corne will just give you a bit more stats on this building before they go into the tour. So the question you're going to be asking yourself is why we're here. How is it? The thing is, firstly, we talk about multi-franchising. And what we wanted to do is bring you here, so you can see what multi-franchising means in real life, not on pieces of paper and pictures. Ockert and I and Corne walked this place in end of November, beginning of December before we went on leave. It was nothing like this. Fast forward to 5 months later, see what you've got. You've got 7 dealerships, and it's got all the [ band ]. Nizam will go through a lot more detail than I'm going to. But the point I'm making to you that once you set your mind to it and you put the right people to it, 3 dealerships become 7. What does that give you? Economies of scale, you can get nice facilities but not for 1 dealership or 7 franchises. And this will be a profit machine, where it may be marginal. With 3 dealerships, with 7, what do you do? You must make money. So that's what multi-franchising does. We talk about it in [ cloud store ], where we had Merck today. We've got Merck, Hyundai, Kia. Rustenburg's got similar things and then Polokwane's got it's [indiscernible]. We've got these places where we've got 6 already, I think, and 6 or 7 to go. So that's the idea, is to create more of these. You can create a Taj Mahal with 1 dealership or with 7, and our recipe is the 6 and 7s. So that's the purpose of that. The other reason why we wanted to meet with you, obviously, we haven't seen you for 2.5 years, and now we're into a meet with you face-to-face, and welcome to the people on the webcast as well. Where's Justine? Justine, have we got everyone on the webcast? Welcome to our members on the webcast. Nice to have you on again. A lot of you will be in Cape Town, which is understandable. People in Cape Town don't fly out on a Friday. You normally fly into Cape Town on a Friday, so we understand that. We couldn't fit in another day, but we'll catch you somewhere in Cape Town. And for the days that were lazy to travel in Joburg and maybe sitting in Stellenbosch or in Pretoria even, we welcome you to the webcast. The other reason why we want to meet with you, multi-franchising was one. Two, this is not a 1-man or a 2-man show. Ockert and I don't run this place. We work with a very competent bunch of leaders. And I wouldn't go to war without any one of these people that are in front of you that I've introduced you. And for the people that I haven't introduced, obviously, we've got Shumani looking after Renault. Uvasha next to Shumani is Ockert's right-hand person. I wouldn't say right-hand man. That will be wrong from a gender point of view. Ockert, I got that right. Michele looks after our HR. Thato looks after Mitsubishi. And for those of you who don't know, we've got Rainer Gottschick here. He's going to be heading up our retail business -- the Car Rental business, sorry, and we're going to break the cluster up with Retail and Rental. And Rainer is going to report directly through to me on rental because the retail job has become very, very big. And if I'm going to get more of these Taj Mahals growing, Corne and the team's hands are full. So there is no time. And Corne works about a 20-hour day. He thinks working 24 hours is going to solve his problem. Unfortunately, it's not. So we had to let him get back to 12 hours a day. And Rainer can work the other 12 now. So that's how we try to manage our books as well. So Rainer, welcome on board. Nice to have you. For those of you that don't know, Rainer is a chartered accountant, was appointed as CFO at Avis and then became the big shot as CEO. And then he helped the [indiscernible] with mergers and acquisitions and disposals and things like that. And then Ockert and I had a cup of coffee, and he quite liked what we said to him, and he said, "When can I join?" And there is he. He's arrived. So he's going to look after our Car Rental business, reporting directly to me and making sure that, that business becomes a meaningful player in the next 3 to 4 years. COVID set us back, but his job is now to rebuild. So you know what we've done from 25,000, 26,000 cars. We went to 8. We had about 16. His job is to get you to 30,000 cars. So welcome on board and you've got your job cut out for you. Whoever I left -- Shakira in treasury. So with Shakira there, for the bankers, you'll know her. And then you've got Ntando, our Company Secretary, who'll make sure that we're on the straight and narrow. In the ESG, he looks after the G, and he makes sure he keeps us out of jail and looks after the G as well. So that's his job. And then whoever I left out, there's Barbara. Barbara is the recent person that joined us. She was at Shell South Africa, well-groomed chartered accountant that worked in Joburg, Cape Town and in Holland, and she worked with those Dutch folks, which are not easy. They're not so friendly for females like we are, but she managed to work with them. And she passed with flying colors, came back to Cape Town, came back to Joburg. And then she saw the light that maybe the energy is not where she wants [indiscernible] more the place to be. We had breakfast with her, and today, here she is with us. So we welcome Barbara. Welcome, Barbara. I mean it's much more exciting than selling fuel, selling cars and making some good money and putting SENS out like we did yesterday. And nice to have you on board. She's at the head office with us in the financial team with Ockert, myself and Uvasha. And she sits next to Ntando, so he keeps her out of jail as well. So who also have I left out now? And then we've got Berenice, who looks after sustainability, transformation. And there, she looks after the E in the ESG and the S. So she makes sure that we get the scorecards. We get our library projects, the clinic projects, the COVID communication. So it's a minister with no portfolio with plenty to do. So there also, it's a 12-hour day because the communications, our minister will start talking about 8:00, finish over 10:00, 10:30 communication on my computer. I've got to read, and by 8:00, it's going to go out. So none of the people here work an 8-hour day. By the way, if you worried that they work 8, none of them work. We're the boss. Well, it doesn't work 8 hours a day. So they work with me. And then we've got Kobus here as well. Kobus heads up our treasury. And you can see the bankers are all sitting next to him. They want the funding from him. So when he needs the funding from them, so that's why they sit next to each other. Justine, have I left anyone out? And then obviously, the person that gets us here and manages is Justine, so she's here as well. And I'll thank a few more people after that. So firstly, multi-franchising. You understand the concept. This is the people that are the leaders, not Osman and Ockert. There's a very competent team that runs this place, and here they are today. Please don't ask them about margins. Don't ask them about how much they do on workshops and don't ask them all those. They won't answer those questions. Leave that for Ockert and I. Ask them about the operations, things like that, and they'll happily answer your questions on that. I know you guys -- we -- I think we surprised you on the upside yesterday. I mean the -- Anthony, did I surprise you? Thank you. Hopefully, we surprised you guys with the SENS announcement yesterday. Anthony, I told you watch the space, and I know you've been watching the space. So thank you. And to all of you guys, I mean, I'm sure you were surprised yesterday with the SENS results. So without wasting too much time, thank you for joining us again, and Kerry, would you come up and talk about the innovation and technology? Today's session is not about numbers. We gave you the numbers yesterday, where we are. You've digested them, and well done and fill your spreadsheets. Today is about the future because everyone thinks we are car dealers, and that's all we understand is sell -- how to sell a car. What I'm hoping to do by the end of -- by 1:00 today is explain to you that while people are selling cars, the only analogy I can actually give you and it happened in COVID, we were repairing these planes' engines while we flew them. Fortunately, we had 4 engines on this plane. So while we repaired 2, the other 2 are flying us. So the purpose of today is to tell you where the divisions are going in terms of their thinking of technology, innovation, why we are doing things differently to remain sustainable, to remain relevant and for you, as shareholders, to say that my money is safe for these people. So what we wanted to do as well -- that's right. No one here is going to talk about their numbers. They sold 10,000 cars off. They're not going to talk about -- they're going to tell you what they've invested in IT, what they're doing, how they're addressing their customers, things like that. One simple example, when all of you guys were sitting at home, you couldn't play golf at that time. Remember, the first 6 weeks of the first lockdown? On that Friday, we opened up. The first picture came from Hyundai where they delivered the first car. And I phoned, and I said, "Niall, are you mad? Who are you delivering to?" He said, "Osman, I've been talking to these customers for 6 weeks, and we're delivering." We had the problem where Minister Patel allowed us to open. Minister of Transport didn't give us open licensing offers. These guys scratched and found every permit they could find and started delivering. From that Friday, they started delivering. So it just shows you it's not about whether the dealership's open or not. Open, there are people working, contacting customers, and technology has become a big part of this business before COVID, more during COVID and even better into the future. So that's the message we want to get out of you that this team is very active at adapting to changing circumstances. COVID was a kicker, Yes, I accept that. But that doesn't mean they all went to sleep and played golf. They've invested a lot -- we've invested a lot of money. They've invested in people, and they'll show you the journey we're going through into the future, adapting to the change of our customer. And the other thing we want to point out to you as well is that when the people finish off, you'll see it's not about new cars. It's new cars preowned. Then there's workshops, and there's parts. There's aftermarket part that you tackle the customer after they've come out of the warranty periods. And then you're going to talk about car rental. And then you've got Kerry, who's going to talk about what Mobility Solutions done and talk about innovation and technology. So this is a business that's -- but -- these businesses fire on different cylinders in different times. So overall, you pick up the total, but they don't all do that. They don't all do that. You'll get some of that, doing that at different times, and that's why it makes us sustainable and it makes us bulletproof in a sense in terms of 1 short recession, 100 basis points in interest, shortage of cars in 1 brand don't impact this business. The other thing is that, remember, we do pick up. Blind moles do pick up a nut now and then. We're not saying we're blind. But don't forget that we've got the U.K., we've got China, and we've got Australia that also bring in some hot currency into our numbers as well. So it's this multifaceted business in different jurisdiction, with agile teams and business people who think about Motus all the time can deliver what they're delivering. So -- and that's the reason why I want you to meet them, walk around with them. They're going to take you on these facilities and get to know who they are. They're real people doing real jobs, acting in the best interest of the shareholders. Okay. Ockert, have I covered everything in case you say I missed out on the script? Kerry, you want to come up and talk to the guys about what you're doing in Mobility Solutions and about innovation and technology?

Thank you, Osman. I think given the opportunity, I can talk a lot. So Osman has put me under very strict instructions to watch my time very, very carefully. So if you see me looking at my phone, I'm not checking WhatsApp. I'm just watching this clock. Actually, quite nervous about it. So I was asked to speak today about innovation and technology. I think Motus has done a lot in the space over the last few years. But obviously, as a result of COVID, we've had to escalate all of our efforts in this area in the last 2 years, and it's something that is getting a lot of focus in all areas of our organization. I'm going to kick off by telling you sort of the hot trends that we're watching in the industry. and how we see it. So what we know is that digitization in our industry is increasing. And as a result of that, we've seen a shift in how we need to view IT. So I think if you go back 20 years, IT was a support function sitting in a back office somewhere, very separate from the business, running the service. No one was quite sure what they did or how they did it. And that's completely different. IT is now not a support function. It's a key business enabler, and it is the backbone of our businesses, all of them. So we've seen a massive decentralization of software applications digitization into the businesses so that the guys that are running the businesses can also take control of the tech journeys and then centralization of networks infrastructure, et cetera. We also know that the omnichannel experience is going to play a key part in the customer's purchasing journey. When I talk about the omnichannel experience, I'm talking about the fact that customers used to interact with us through one channel, which was our dealerships, and they would walk into our dealerships, and that would be the start of their journey. And obviously, now we're seeing that customers are coming into our world through a number of different channels through call centers, through websites and also then still face-to-face walking into our dealerships. And our philosophy is very much that wherever our customers are, we need to be there to meet them. Also interesting to know that in the past, when a customer walked into our dealership, that was probably the early stages of their purchasing decision and their purchasing journey. And what we see now is that customers are coming into our dealerships at all different stages of their journey. So a customer might actually be 95% through their journey already. They've researched the vehicle. They know what they want. They know what value-added products they want. They know what kind of far-end solution they're looking at. And they've just come into the dealership to conclude the transaction and take delivery. So we've had to adapt our sales process and our platforms to be very flexible to cater for the fact that, that customer is coming into our dealerships through all stages of that journey. We also see emergence of shared mobility solutions. I think that's very topical. When associated mobility solutions, what am I talking about? I'm talking about ridesharing, vehicle subscription models and e-hailing. And we have seen that the uptake of these kind of mobility solutions has been a lot faster in the rest of the world than we're seeing in South Africa, but we do know that it is happening already, and the rate of uptake of this kind of business models is going to increase. What's key to those businesses is that, essentially, that business model is a tech platform, so you can see how tech is starting to become more and more important in the space. We also know that connected cars, it's a thing. It's happening already. And we know that these cars are going to generate a lot more data. So if we're going to win in this space, we have to invest in managing our data better, managing larger and larger volumes of data in a cost-efficient way. So data becomes increasingly important as well. And then, of course, we always talk about those opportunities to monetize data. Electric cars, I think my colleagues are going to talk about quite extensively today, so I'm not going to go into a huge amount of detail there, except to say we do believe that this might be a slow rate of adoption in the South African market as well. But we do know that when it comes, it is going to require a shift in skill sets. Even the technological skills, et cetera, that will be required in the workshop will be very different to the traditional mechanical skills that were acquired in the past. How are we responding? I think this diagram puts it together very nicely. If I look at the blue areas of this diagram, what are the outcomes that we are looking for? The outcomes that we're looking for is operational excellence, the omnichannel customer engagement that I spoke about. We want differentiated vehicle life cycle offerings. I think it's important. That also ties to the next one, the customer's journey facilitation. The way we look at it, every vehicle that is sold becomes a potential revenue stream for Motus. And it is -- actually that car parc, not vehicle sales, it's the car parc that drives a number of our significant revenue streams in our group. And it is very important that we are that customer's partner of choice, that every time that customer does have a need, we are there to meet them at that point with the right offering. And that is very much about data and very much about tech because, at that point, the customer's not in your dealership anymore. Workforce enablement, we want to give our people all the right skills to do their jobs in the most efficient, most effective way and to create the most brilliant customer experience that they can. And then, of course, I think what's important is that circling all of that and almost inherent in every single thing that we're doing at the moment is our innovation capability, which I'll also talk about a bit more shortly. Networks and applications. Well, we've seen with COVID a shift in the way that people work, and we've seen in Motus our throughput increase by 337%. And as a result of that, we had to go and reengineer our networks completely. We went with SD-WAN, which is supposed to be the latest and greatest, and it has worked very well for us. It's created a 245% increase in capability. You're saying, "Oh, well, aren't you short of your 337%?" No, we did have excess capability before we started on that journey as well. So that SD-WAN has really positioned us very nicely into the future with also significant reduction in costs. And we all know with the new way of work that IT costs are increasing for all businesses. Cybersecurity, big topic. We've seen so many attacks in South Africa in the last couple of years. I think the 2 that stand out, probably the TransUnion data breach, which I think impacted probably a lot of us in this room and a lot of us online. We've also seen the Transnet ransom incident. And we know that the ability to disrupt business significantly is there. We've responded with the NIST framework. The NIST framework is a framework developed in the United States. I think it's widely recognized internationally as best practice. And we've put a lot of focus into this area in the last couple of years. Related to that, we've also upgraded our firewalls. Interesting thing about firewalls, everyone thinks, oh, you must measure the attacks that are coming from outside into your network, but it's actually not that at all because, typically, what happens is you will have something that finds its way into your environment and starts calling out to a website where it can then download the malware. So really, what we also track, we do look at what's coming in, but we also look at what's trying to go out. And what we've seen, as a result of our efforts in the last couple of years, is a 71% reduction in those malicious call-outs. We have also been very busy on the applications front. So on the applications front, we've had 2 digitization projects that we initiated in the last 12 months, and both are deploying in June this year. And both of them are fairly, I think, transformational in nature in terms of the way we conduct transactions and also the improved customer experience. ERP implementations, we're currently busy with 5. They're all at varying degrees of completion in different areas of the business. So what we do ensure is that our customers -- our businesses are constantly replatforming to modern, up-to-date technology. AI is another thing. It's a buzzword. Everyone is talking about it. We have been busy with AI. So we had one bot that we deployed into the business in one pilot site. That bot saved 1,000 man hours. It was just a routine finance task that was automated through the spot. And if we can now start deploying this through all of our sites in Motus, you can imagine the massive uptick in productivity and efficiencies there. And the second one is also a multipurpose AI solution, which will impact probably, I would say, potentially 4 or 5 different areas of our business also in terms of customer experience and taking the pain and paperwork out of the customer journey in various areas. Cloud is definitely happening. And I think what's important is the correlation between data and cloud. And we know that data is something that there's going to be more and more of. We know that we have to find better ways to manage it. And really, the cloud is the magic in that formula. And what we've seen just year-on-year in our group is a 400% increase in adoption of the cloud. And a lot of the new ERPs that we're bringing into the business will be cloud-based. It's not even worth debating whether you should or shouldn't be on the cloud because you actually don't have a choice. All the new technologies are going cloud. So you have to embrace it. We have embraced it. And as I said, the benefits in terms of the data solutions are significant. Dev ops, for those of you that are familiar with IT, you will know that dev ops is the best way to run your application development and deployment in the businesses. So all of our respective teams all run on the dev ops methodology, which we've seen, the streamline, the whole implementation of new software solutions into the business and reduces all of the bottlenecks. That's been very successful for us. Digitization is something that we, as Motus, have invested in significantly, as I said, for quite a while but, in the last 2 years, a massive focus area for our business and for our executives. There are so many projects that we've done with so many winning stories that it's very difficult to crystallize that into a presentation like this. So I had to just choose 6 projects to talk to you briefly about just to give you a sense of the stuff that we're doing at the moment. The first one is around the harbor process. So that's the way we manage our cars from how they come off the ships into the bond store, how they move around the bond store because there are certain things that we do in the bond store and then all the way through to how those vehicles eventually get on to the carriers and are tracked there. And we digitize that entire process through barcoding, scanning, et cetera, et cetera. And all of that is now fully automated. It has eliminated I can't tell you how many headaches. If any of you have ever been to our bond store, you all know that you can just walk 4 kilometers and you don't get to the end of it and it's multilevels. And I think if you get lost in there, you would take a long time to get out. But when you lose a car in the bond store, it can be a real pain. So I think that's been a winning solution for us. The car buying process, hopefully, you've seen a lot about motus.cars, and we're very proud of that solution. There's our flag over there. That was something that was launched quite recently. It's getting significant traction. Corne is going to talk about it a lot in his presentation. But that was a big win for Motus. The car sales process. So if you bought a car recently, you know that this can be a very painful process. Once you've got your car, you finished with the salesman, you're going to go sit with the F&I. Then she wants to see your proof of address. She wants to see your payslip. She wants to see your bank statement. She want to see a ID document. She wants to know everything about you. And it is a painful process. But what we've done is we've automated the sections of that process already that relate to sort of phase-type stuff. So we have created a digital customer identity. It's very quick and easy process, scanning your ID. You can do it on your phone. You can do it anywhere. You don't have to do it in the dealership. It calls home affairs. It calls various credit bureaus. It does the whole shebang. And what we've seen is that, that regulatory aspect of the vehicle sales transaction has been reduced in time by 50%. So that's a game changer in terms of customer experience. It's also a game changer, obviously, in terms of cost for us. If you imagine all those hundreds of F&Is completing all those many, many thousand transactions. That is a game changer. On the rental front, Corne is going to talk to you about Ready2Go. I think also renting a vehicle, we know that there are certain pain points in that customer journey. You want to collect your vehicle. You may stand in a queue for a very long time. There will be a lot of paperwork. And it's not necessarily the best customer experience. So also affiliated to the digital identity project is a solution called Ready2Go. And a customer will create identity just once. And then every time they want to engage with Motus and rent a vehicle that a lot of the paperwork has already been done. That means collecting your vehicle is going to be a much improved experience going forward. In terms of vehicle servicing, we've deployed tablets in the workshops. That's also been a win. It improves the customer experience. You can see exactly what's happening with your car, what needs to happen with your car and plan your maintenance going forward. And then in the aftermarket space, we are printing -- 3D-printing certain things. An example, Beekman Canopies, those canopies are fitted with hinges. So we are 3D-printing some of those hinges. Those form the prototype for manufacture. That has definitely improved our processes in that business as well. And we believe that's going to go from strength to strength. We're going to be doing more and more of this stuff. And also, of course, looking at robots for the picking of parts, picking of parts and any kind of parts, warehouse is a pain point. So we're going to see what efficiencies we can get in that space. I think that monetization of data is a buzzword of note. And what I have to say is that we do monetize data significantly. We've had a number of projects in this space, but for any of you that maybe have been through our call centers to see how we manage our data to identify where a customer is in the journey, to identify what their needs might be at that point and to contact them with the right products at the right time, to constantly engage with our customers once they've taken ownership of that vehicle because remember, that vehicle is a potential revenue stream for Motus. And we don't want to let it leave our world. And that is all about monetization of data. We also have to improve our analytics. We've done a lot of work in that space. And one of the most exciting projects that we worked on recently was with Discovery. You may have seen this in the press. And this, to quote another buzzword, big data. This was a big data project. So Discovery had a certain set of data. We had a certain set of data. And when we were able to put those 2 data sets together, we were able to see unique things about customers' driving behavior and the impact that, that would have on a warranty product. As a result, we were able to develop the Discovery warranty, which is the first payers you drive warranty, I think, in the world. We haven't seen anywhere else. And what this does is it basically says good drivers will be rewarded by a reduction in premium and bad drivers would see an escalation in their premium. So that's the payers who drive usage-based product that we're talking about. And that was definitely a big win for us. And then I wanted to talk about the innovation capability that almost encircles everything that we're doing in our businesses at the moment. It's built on the premise of doing the right things and then, of course, doing things right. I actually want to go to this slide first. I'll give you a story of our innovation journey. We started by sending a group of people overseas to go and find the best design-thinking innovation methodology, which we believe we did. And we then brought people to South Africa to train our people in this design-thinking methodology. And what is this about? It's all about taking an idea all the way through to prototype and doing it in a seamless way and removing all the friction points and the mental blocks and trying to open people's minds in the way they solve for the problem through to the prototype. From there, we said, "Well, okay, now we know how to run a design sprint, so we can throw a business problem into a group and get a great answer. But how do we know what the problems are that we should actually be solving?" And we did that through finding an innovation platform. So it's an electronic platform where you -- our people are able to interact, share ideas, et cetera. We said, well, now we've got a platform, we've got a methodology. We need a community. And we went out to our people, and we said, "We're creating an innovation club community." We call it Motus exponential. You'll see the logo there in the corner, mx. So we gave it a brand. We gave it an identity. And we had a huge take-up in our business, and at this point, it's 4,000 of our people are actively involved in this innovation community. Now what they're able to do is they're able to generate ideas onto the platform and share them. And from there, the community is able to vote on the ideas. And it could be something small. It could be someone in a workshop that says, "I think this thing -- we could manage our calendars better, or we could do manage our bookings better, and this is what I'm thinking." The community then votes, goes into a design sprint, if it's a popular idea. From there, we have what we call pitching days. Our executives sit, and the top teams come in to pitch to us. And if somebody likes the idea, you adopt it. If you adopt it, that means, as an exec, you put the resources in place to take it into your business. So I think if I go back, that will give you just an overview of the portfolio as it stands at the moment. It changes constantly. So we've got projects that have gone into business and moved out of the innovation space. We've got projects that have been abandoned because sometimes they fail. And it's the whole concept of it's okay to fail. If you're going to fail, fail fast. So at the moment, we've got 21 concepts in our space. And we work it through 3 phases, which is basically the discovery phase. We're doing some research. We're seeing if this is something that can work into a validation phase, where, yes, it can work. We've got the proof. We've done the research. And now we start going into prototype space and then into scale phase where it goes into the business and get scaled through the business. At this point, 100% of our initiatives in this portfolio are -- have a core digital component, which I suppose, actually isn't a surprise. Just to mention that we also have a number of events that we run. We have a number of guest speakers. People dial in, Motus people dial in from all over the world. It's great to see our U.K. colleagues, our Australian colleagues as well as our South African colleagues dialing in. And people just sharing innovation methodology, sharing innovation experiences and, I think, really making the whole thing come alive for our people. So we were able to move that virtual during COVID. So we didn't stop. We carried on, and I think people actually really appreciated it, especially during COVID, to have something different and exciting to think about and talk about. We also entered our whole mx campaign, this innovation community, Motus exponential that I explained to you now, into a European award. And we were very happy -- I mean European competition, we were very happy to win a very nice award in that space. So it's great to see that the team are now being recognized for the great work that they've done. And I wanted to play a video today, which was innovation sprint that we ran just around ESG topic. But just to give you a sense of what these kind of sprints and days feel like in our space and some of the things that we're thinking about and how we're thinking differently now in this particular event, this was event that we ran in conjunction with Standard Bank, with a slightly different design methodology from our typical one called Think Wrong, which is very exciting. And we pulled a whole bunch of partners into the room. So it wasn't just Motus people. And we had a fantastic day. Osman said I shouldn't play videos because they never work on the day. And in a tech section, that's just bad, right? Anyway, I hope I didn't take the risk. So, guys. [Presentation]

I hope that made it a little bit more alive for you. And as I say, a lot of that kind of stuff going on with some great results for Motus. Justine, I think we can open to the floor for questions and if there are any online.

Okay. It's Rowan Goeller from Chronux Research. Can I ask a question on connected cars and data? Can you just explain what you see in terms of opportunity for you as a car dealership business? And then that data, which is valuable, who does it belong to? Does it belong to the OEMs, and they might want to extract a charge for it to let the dealers use it? Or will the dealers be allowed to collect the data and use that? And I'm sure you're trying to drive aftermarket and other things through the connected car environment. Can you just run through that, please, and opportunities you think you see?

If I can talk, then the first opportunity that I see is in Motus Mobility Solutions. So a connected car needs an on-the-ground service provider in a number of different spaces. So for example, if the vehicle breaks down, somebody needs to provide roadside assistance. So that's one of our products. If a customer -- if a vehicle needs to be serviced, it needs a service plan. It's one of our products. So in that space, there is a lot that can be done to provide their customers' experience, particularly, in the imported brands and maybe some of the other OEMs as well. So that's opportunity number one. I think that who the data belongs to will differ from OEM to OEM. I don't think there's any one answer there. But I also think it's important to look at who the device belongs to, the telemetry. And although prefitment is definitely something that's happening with OEMs, that doesn't mean that there won't also be a second device. So I think everybody is going to play differently in that space, and it's important to position ourselves correctly to win.

Questions from the floor? There's nothing on the webcast at this time.

I think what we're trying to show you with Kerry's presentation is that yes, we sell cars and parts and new service cars, but there's a lot happening in the background to make sure that we're sustainable and relevant to the customers' needs over time. And that's why you can see all the investment that's taking place. And remember, this investment didn't start yesterday. 5 years ago, where we started with some of these IT projects, the innovation, the trips to San Francisco to Berlin, Cape Town. So a lot of these have been invested pre-COVID. And now we're starting to see the benefits of that coming through, and that was sometimes our best-kept secret. And that's why I wanted Kerry to share some of these ideas with you. There's a lot happening, and a lot will be happening. But the journey is a very solid journey that's going in the right direction, meeting customer demand. So we're not going to be a take a lot where you're going to pick up everything and someone is going to deliver. We still sell cars. You've got to bring your car and things like that. But there is need for change in our space, and that's the journey that we're on. So if there's no other questions, thank you. Thanks, Kerry. Thanks for the, well, great presentation. Very well done. You can stay for lunch. Before I call Corne up to talk about the retail business, there's one colleague that I missed. He's Gary. Unfortunately, he's in Korea. And we couldn't change the timing of him to get back in time for this. He's the CEO of the Kia business. I know he's listening. He's in a hotel in Korea at the moment, so he's listening. So Kerry -- I mean, Gary, welcome, and I forgot to mention you upfront in the opening. Corne, you want to come over and tell us about retail.

Great. Thanks, Osman. I think just following Kerry on innovation and technologies, so I think talking about traditional retail, I think, is going to be a bit of a tough challenge, but I'll try my best to try and excite you. So I think if we just maybe go on to the first slide, I think. So what I'm going to try and achieve today is just talk about maybe some short- to medium-term disruptors that's coming at us from a traditional retail channel perspective. And I think this slide actually is quite a busy slide. So I'm going to roll on it for a couple of minutes just to try and orientate you on the slide. And I think it will hopefully address a couple of the main issues that I think we are trying just to contend with. So most of you guys would know that when we started out, Motus was a traditional dealer. And I think if I go to the left side, I think we, well, been established in that space. But quite high market shares, I think we operate well in that environment. I think the graph depicts 2 sections, obviously, new on the top side and used on the bottom side. And I think so we play in -- traditionally in the new vehicle space and classic dealerships in both a franchise perspective, and all the franchises that we represent is depicted on the left. So effectively got all of the major franchises in South Africa, and we represent all of those brands. And I think on the right-hand side, we've just highlighted the importer business where we're also the important distributor for those brands in South Africa, where we also own the bulk of those retailer outlets. I think from a use perspective, once again, the franchise outlets, where we actually have bricks and mortar facilities, typically sits in. And if I can give you an example, in VW, it would be pretty much the MasterCars and Auto Mart and [indiscernible], et cetera, et cetera. So we represent all of those brands in those spaces as well. Importers, once again, Hyundai, have got their representation and all of those, I think, also well represented there. And then we've got 2 unique owned brands in terms of the used vehicle space. One of them is Auto Pedigree, and Auto Pedigree now have a particular market demographic and sells 1-year-old effectively ex-rental cars. I think specifically focused on that and I think quite good at that. And then what we have done is we've also transitioned [ off late ] Imperial Select into Motus Select and where Motus Select plays from a bricks-and-mortar perspective is specifically where we've got a multi-franchise like this operation, where you don't have one brand where you can actually attach a particular importer or franchise. It used to be a [ gold mark ] to it, but you actually have a unique brand. And I think we position those. We've ratcheted the footprint up quite nicely, and I think we're now heading to about 40 of those dealers countrywide already. I think if I then move on to the online space. And I think, once again, with its slightly smaller -- I think it's a slightly newer channel for us to -- where we play in. I think, once again, a very, very busy slide. But effectively, I mean, safe to say that we -- all of the -- we're doing additional dealers. We also do online. So we benefit from the manufacturers in terms of the used vehicle brands. I think the importance is what they do on their side. And I think we will maybe talk about our online strategy for that. I think then from a used vehicle space also, once again, represent all of those. I think what is different than that is the motus.cars. And I'm going to spend a little bit more time later just talking about motus.cars and where that's positioned. And effectively, if I can summarize it in one word, we are competing with aggregators in the motus.cars space, so effectively giving a complete online digital transaction space for customers to engage in. What makes motus.cars unique, it is an online brand, and it's completely owned by ourselves. So I think only our vehicles are on there. Then if you look at the third channel that's actually now emerging and evolving where customers are now accepting a little bit more of the warehouse retail environment buying cars. I think the selection of cars in one site appeals to customers of late. I think we've now seen a couple of those actually entering into the market. I think with our acquisition of GetWorth last year, I think, positions us well to compete in that market. Once again, GetWorth slightly positioned this premium in the warehouse retail space, once again, supporting where we stand as an organization. So I think, in a nutshell, it is maybe where we play from a motor dealer space. One of the obvious areas of the market that we are not depicting there is the private to private space, and I think that is currently work in progress from an innovation perspective. And I think we will enter into that market in some stage when the time is ready. So I think we're doing some work around the private to private space, so effectively covering all of the channels of the actual market and, I think, well represented across all of those. So I think very comfortable with that. Once again, if I just talk about the short to medium-term impacts in terms of our traditional dealership model. I think we spoke about the sales channels that's evolving, I think, pretty much covered that quite well. I think the other thing it's also top of mind for everybody even in this room is electrical vehicles and what does that actually do to the traditional dealership model, and I'll spend a little bit more time on that. I think some of the other stuff that is on our radar but it's not really having -- going to have a significant impact for us now, I mean, the aftermarket guidelines came into effect, I mean, towards the back end of last year. I think we haven't seen a major shift in terms of customer behavior patterns. We haven't seen an impact on our business. I think that we are in the process of opening up an aftermarket workshop channel, also letting ourselves win that market shift that might happen. I think then if I look at the increasing price competition, I think just maybe putting it more, I think, in a more simple terms, effectively, where OEMs are, they are moving towards an agency model. We've seen BMW and Mercedes Benz have moved towards those. Largely, as a dealer group, we were unaffected by those. I think from a margin perspective, not really impacting us that well. I think we've adopted the -- to the agency model principles quite well. I think we haven't seen a major impact on our business. I think the other 2 that's slightly further out is obviously shared mobility and autonomous vehicles. I think what we do, I think will happen in time, is that you'll see a change in the actual customer. So from a consumer perspective, we might see as there's more adoption of shared mobility. I think you will see that the customer will change, more from a private customer to institutional-type customer in that space. So then if I just go back, I mean -- so from a -- if I just come back to that slide, so from a channel perspective, I think it was well covered in the first slide. I think we are well positioned to cover all those channels. And I think that's obviously work in progress for us, and we will evolve as the market evolves. From an EV perspective, once again, a very busy slide, and I do apologize, but I think I'm going to highlight 3 main items here. I think from an EV perspective, very, very slow adoption in South Africa. I think if you compare it to Europe, and I think that first section just depicts that. If you look at the actual number of cars sold from 2013 to 2021, very limited vehicles sold in South Africa. Once again, I've tried to explain the differences between the mild hybrid and full EVs and fully electric vehicles. I think if there's any questions around those, I'll take those afterwards. But I think what we are seeing is that from a charging infrastructure perspective, I mean South Africa from a geographic perspective, quite limited, still at only 300 charging stations. I think if you look at range, I mean there's a massive range anxiety, particularly given our geography in South Africa and in the vastness of our country. And once again, 440 kilometers do scare people from a driving range perspective. But what is quite interesting is to look at what the OEMs are doing, and I think it's obviously mainly driven from -- as well as Europe. There's quite a lot of EVs coming into the actual market. And if you look at what's happening by 2023, we'll have 20 new vehicles being launched into the South African market. Obviously, one of the key critical considerations is affordability. I mean most of you would know that any vehicle to vehicle, very vehicle transactions, South Africa has been financed currently as way sub-ZAR 500,000. If you look at where electric vehicles play with the exception of the 2 entry-level vehicles, most of them sit between ZAR 2 million and ZAR 3 million range, making it largely unaffordable for the bulk of the consumers in South Africa. So I think it's something that we need to watch medium term but, I think, short term, not going to have a major significant impact on us. I think what will also happen in this space is that there will be more of a hybrid adoption before it's a full-battery electric vehicle adoption. I think I've listed some of the EV constraints. I think one of the single biggest consideration still is from a price point perspective, I think, taxation currently, if you look at the -- it's still heavily taxed at 25%. If you look at internal combustion engines, still tax at 18%. So government would need to make a significant policy change in terms of supporting EVs if we want to try and get mainstream adoption. I think that's one consideration. The other, I think, knock-on consequences that, obviously, fuel and the taxes on fuel is quite a secondary revenue stream for government. And I think, obviously, as you get mainstream adoption of EV, what will happen is you'll definitely see government being impacted by that as well, so I think it's going to be a fine balancing actual government to try and come up with a strategy that supports EV and EV adoption in the local market. I think battery replacement is one of those considerations where lots of work has happened. I think the stability in terms of the power sources has improved significantly. If you look at the actual density in terms of the underlying product, that's improved significantly. But typically, a battery has got about 8-year and 160,000 kilometer range. And I think for us, in this market, the current biggest thing is the recycling and repurposing of those batteries and the cost of replacement also, once again, adding a massive cost in terms of ownership cycle to EVs. I think power supply, I mean, I don't want to belabor the point, but we've got quite unstable power supply currently. I think it also creates -- I mean it's a massive consideration for people if you don't have continuous power to charge vehicles up. I mean once again, not getting into detail, but if you look at the Level 1 charger typically, I mean that would give you about a 10- to 15-kilometer range on an hour's trickle charge, and it's typically your household charger that you plug into your normal wall socket. If you go to a slightly Level 2 charger, that you would need about 1.5 hours' power to give you about 150- to 200-kilo range. So mainly what you would need is you would need massive infrastructure, I mean, investment to get DC charges that actually charges those vehicles back up to about 80% of range within an hour. And I think there's quite a lot of that. It still needs to happen. So I think I spoke about the practicality and the affordability of EVs. So I think, once again, something in our radar but not something that, I think, will happen immediately. I think Niall will talk about the brands that we represent from an import perspective and our state of revenues in terms of if there's market adoption, how we would play in those spaces. I think the second topic just that we are seeing is, and I think Kerry alluded to in her presentation, is that we have definitely seen a massive shift in customer behavior. So I think the picture on the left just depicts a traditional linear buying process of going into a dealer. So once again, you search for the car. You then actually have to go and get your car valued at the dealer. It's a very linear process. You can't -- you don't have any flexibility in terms of that. So it's a typical normal transaction that you would have experienced in dealer. I think what we have seen and, obviously, COVID's accelerated that is that the consumer now wants an omnichannel experience where they can actually enter and exit that process at any given point. So for instance, if a person wants to know if they qualify for finance first, they want to go do a finance application and exit that point. They want to go and see if they -- what the vehicle -- the used vehicle's value is worth. They want to exit that point and enter that point. And I think what they want to try to do is do that seamless. So for us, I mean -- the big challenge at this stage is making sure that we integrate those 2 where you can actually seamlessly integrate our traditional and our omnichannel experience. So currently, as it stands, we put both of those available to the consumer and as they would like to enter, but those are not, at this stage, seamlessly integrated. And I think that is the Phase 1 that's gone live that Kerry's represented in her presentation, just to say that we are in a state of readiness and are trying to make sure that we can, through those channels, move the consumer between the 2 seamlessly. So I think, once again, just digital adoption has definitely accelerated. I think we knew that we had to adjust for that. I think we've put quite a lot of work in progress into that. I think, and we are comfortable that from an omnichannel perspective that we can serve the consumers where they want and as they want. I think this maybe going through motus.cars for a second, I think, why motors.cars and what does it give us. So just maybe some stats about motus.cars, fairly new brand. I think what is quite important is that our strategy with motus.cars is to try and create a direct-to-brand engagement with the consumer. So no longer going through third-party aggregators or through alternative websites but actually making sure that the customer -- consumer engages with us as a brand called Motus. So we're now currently seeing about 10% of our consumers coming directly into our domain -- website domain, which I think is quite encouraging, which means that the brand is definitely getting some traction in the market, and I think there's definitely been some adoption in terms of seeing it as a major player. I think the intent with motus.cars when we started it our first a group was to make sure that we generate significant amounts of leads and not only for our retail space for the wider group. I think what we're also trying to do is to try and make sure that we accelerate our digital journey and give a platform where the consumer can actually engage with us, end to end, from a buying and selling perspective online, so not having to come into a dealership at all. I think so that gives us that platform to engage with the consumer on that basis. But I think what it also does because we own it and it is proprietary is the fact that we can change and evolve as the consumers' need are changing and evolving. Just a couple of advantages that motus.cars gives us over our competitors, I think, firstly, if you compare it to any other aggregation site, we own every single vehicle on that side, which means that the consumer can actually engage with us on that site with the trust and confidence that now we as a group have. We've been in business for in excess of 70 years. I think we're well respected in the market, and that gives them the confidence that any vehicle they buy comes at that assurance. I think also what it does it allows for digital engagement that we can scale, I mean, as we see fit. I think those are the major online advantages of motus.cars. Not going to go through the actual office customers. I think it's a good value proposition for the customers. And at every given stage, it will be our 10,000-odd used vehicles on that site, and it also represents all of our new vehicles on that vehicle -- on site as well. We can digitally engage with that. I think from our digitization efforts and journey that we've embarked on, I think, obviously, Phase 1, as I said, is going live currently. I think where we are is a couple of key objectives. I think what we are -- key for us is that the customer experience needs to be enhanced. I think, for us, every single thing that we embark on is to make sure that we drive customer experience, and we improve on that. So what do we offer? We offer the customer omnichannel engagement. I think we give tools and support to help the customer select vehicles. So I think quite intuitively, we've built some back-end functionality in that actually guides the customer through that buying experience. I think once again, if you look at features and benefits in vehicles, it's quite a daunting experience trying to source a vehicle and in terms of complexity of those cars. And I think what we've done in this channel is we've actually made it simpler for the consumer to actually go through that buying experience online without the support of a person in dealer. And I think what we've also done is we've tried to reduce duplication and integration efforts to try and make sure that we get some enhanced customer experience and also get some cost efficiencies to that process. I think what we are trying to do is also, once again, create uniformity, where we currently find ourselves. Every single one of our brands have their own website, their own way of engaging with consumers. And I think as we now build on this back end, what will happen is that, that will be now become a uniform central controlled Motus experience. So irrespective of what brand or what dealer or what sales point you engage with, you will have the same experience across the board, which I think is quite key for a consumer. I think once again, that goes without saying that we will realize massive amounts of benefits and cost savings and also the fact that we can actually invest in large-scale infrastructure given the fact that we now combined all of that. I think then the last one is just to try and make sure that we reduce third-party dependency. I think one of the critical things for us is that if you look at what's happening in other markets, is that you are finding some dominant players in the market, obviously taking control of certain segments. And I think, for us, what's quite important is that our third-party dependency, I think, reduces over time as we actually get consumers to engage with directly with our brand. I think those are just from a digitization perspective. And I think why all of this, I think, for us, I mean the key message is that we want to control customer data, and I think we want to control vehicle data. The more we control to that, the better we are equipped to actually serve the customer in terms of products and services that they are actually after. So I think that's the -- just from an architecture and technology perspective. The last one as well, I mean, maybe just to talk about the GetWorth acquisition and what they bring. So just for those that's not familiar with the GetWorth acquisitions, so GetWorth consists of 2 components. One is a data technology section, and the other one is a warehouse retailing model. And I think what we also do through actually aggregation of data, both consumer and vehicle that we can actually leverage the investment we've made in that business. Then we can actually use that in terms of their technology to try and make sure that we, as an organization, benefit from that. So I think that was, in a nutshell, just where we are. So I think Osman, if I can call on you.

So you see this is a car salesman, says what he wants, says it and move on. So well done. So he's picked up some time, Justine, so we don't have to panic about...

I was compensating for Kerry.

Okay. You did a good job. But you can see, like I said earlier, there's a lot happening. Customers have changed. Behaviors have changed, and we've got to change. So some of you would look at those and saying, if you invest ZAR 10, are you going to make ZAR 10 in profit? Remember, it's not about the tenor. It's sustainability. I've got to remain relevant to the future customer, not to the customer of today, the customer 3 years from now. And we all know that people that are my age and Malcolm's age past the 60-year mark buy cars differently to the people that are 35-year-old. So this investment had to be made for sustainability and protect this customer base. And I think what we find interesting, the more we're investing, the more communications that's taking place, and we're building a very strong relationship with our customers. So it's actually -- we thought we're going to protect only, but it's becoming a situation where we're owning more data and where there's more communication with the customer and the quality of the information is very good. And I think that's helping us from producing the additional service or the sales of a new or a preowned car. So it's actually surprising us on the upside in the sense that we're getting more than what we bargained for in the investment that we're making. So -- and remember, like I said, it didn't start yesterday. It started 4 years ago. COVID pushed you, so you pushed faster, and today, we are where we are.

I was wondering if I can amplify on that. I mean so I think what we have found is that we actually have a lot more predictability in terms of the data that we're sitting with in. So as we get more data into it, we can actually be a lot more accurate in terms looking what the future will actually bring and what we need to do to get ourselves future-ready. So yes, I think 100%.

And I think the fundamental difference you're seeing is that using Weelee and using AutoTrader, those are people that selling cars on the net that don't own a single car. They're just selling somebody else's car, and they're making a quick buck on that sale through IT utilization. Now we know that's limited money. How many guys are going to do that? And how much money can you make? But when you own the asset, like we do, we own every asset on the site. It's that when you make money. It's the profit of the car, the finance, the insurance. A person comes with this car, but you sell him another car. So you've got to own not only the customer, but you're going to own the data and make sure that you're upselling all the time, and that's what's giving us sustainability. And remember, when you're big, it's harder because we're going to maintain market share. We've got to sell more than 1 in 5 cars in this country, and we're going to stay ahead of the game to hold on to that, and that's what makes it difficult. Any last one, [ Patrice ], I'm sure you've got a question for us because he's a very intent listener, and he reads a lot, and he watches us a lot, so...

Yes, thanks, Osman. Thanks, Corne. That was interesting. But can you maybe put some numbers to what the -- let's say, the hits have been on motus.cars, the success rates, transactions? Just -- and how that's progressed, the delta over the last few months and still very new? But what are you seeing out there?

Maybe I can talk about that. Obviously, there's always some duplication, I think, once again, with context to the actual hits on the site. So from an Android and Apple device perspective, they actually count -- sometimes, they count as more than 1 hit because of how they reset the actual device. So -- but we currently -- we're also seeing more than 1 million unique visitors coming onto motus.cars monthly. And as I said, more than 10% of the consumers that actually come into motus.cars actually copy URL in separately. So they don't go through a third-party lead generator. So typically, you put a click-through ad, so 10% actually comes directly to the brand. So I think it's a significant, I mean, performance from a really new site.

Into some kind of sales? Or how does it translate into the final result that you're looking for?

No. Also, I think we are getting some traction. So maybe if I can give you some guidance around where we are from a conversion perspective. I mean so the conversion of motus.cars is slightly higher than we would typically find out of one of the major aggregators. If I go through like our leads coming out of an AutoTrader or Cars.co.za, our conversion rate is higher.

Niall, I mean, you've -- you cover stats as well in your presentation. Niall's covering some presentation -- in his presentation, about the hits. Remember, he's talking from an importer perspective. So he'll talk about what hits they're getting and how they're converting and how they're selling the cars. You'll cover that in your presentation as well. But we can come back to that at the end and see if we need to give more information.

It's Willem from Nitrogen. Just following up on the secondhand car markets, can you speak to your overall market share? And then what sort of age group of cars you target? And then lastly, just the competition in this space, I think it is a very hot space, and I think you guys are doing well there. I just want to sort of hear your thoughts on the other players and sort of how you feel you're competing and if you sort of believe you can gain market share.

Okay. So maybe, once again, market context. I mean so if you look at it, I mean, so at the top end, once again, the only way we can track used vehicle sales is through [indiscernible] registrations. Now once again, one needs to recognize that there's duplication in there. So typically, when we, as a dealer, register demo, we sell it 2 months later as a used vehicle. There's a typical registration within that year. But typically, that peaked at about 1.1 million sales annually. Currently, for the last 2 years, we're sitting around 900,000 vehicles, used vehicles being traded. And obviously, once again, you need to segment the market. As a business, we only play in the 1- to 5-year-old space. Yes. That typically is about 25% to 26% of the actual total used vehicle market space. So I mean if that gives you some context, I mean, we'll be happy to give our shoes in those. So if I look at total market, I mean, we would sit at about 6.8% in terms of total used vehicle sales to total market. And if you look at the actual segment that we play in, it would pretty much be on par with our new vehicle sales, about 1% to 4% to 5% nationally.

So we've got to understand that Motus doesn't play in 6 years plus up to 12 years. We don't play in that market. And you think are we silly, no, we're not because remember, when a customer buys a car from us, it comes with comfort that he's bought it from a dealership. And I don't want to sell you an 8-year-old car, and then tomorrow morning, you come, the aircon's not working. This is not working. You get pissed off, which is you came to an either Hyundai or a Kia or a Merck, whoever you came to. Now you're annoyed. But it's an 8-year-old car, what did you expect? So rather buy it from someone else, let me focus on the 1- to 6-year-old cars. Let me tell you what will happen. My ombudsperson cases will travel. You'll get annoyed. I'll lose more customers that way. So what I'm thinking I'm doing good, I'm going to do a harm, and those customers are going to switch off. With the 1 to 6 years -- 5, 6 years, depending on -- we're not hard-nosed about those things. We used to be 1 to 5. We're starting to migrate a bit because the quality of the cars you get are better, you take it. But that gives us comfort that we've checked the car. We've done our best to sell you a car that, in 3 years' time, you're going to come back. But an aggregator, does he care? If you bought on AutoTrader or you brought on Weelee, do you care -- you'll never go back because they didn't own the car. They send you to the seller, which you never may join those dots. So we stick to that 25%, is the 1 to 5, 1 to 6, and that's the market. Now that's the one side of the equation. Remember, there's another 10,000 to 12,000 cars being sold in Auto Pedigree, which is 1 year old. No one can compete. We've got the cars in Car Rental. They'll come to us, and we'll sell them there. Don't forget those cars don't only come. Niall and Gary and Shumani and Thato will enjoy that because they also sell car to Car Rental. And they cut deals. They're smart. They don't -- if they give cars, 100 cars to Car Rental, the 100 doesn't come to me. 50 will go to them, and 50 will come to me. They got to keep their used car outlets busy as well. That's how they create that as well. So we would just be careful that we don't play in that market. We play in a niche market. And on top of this niche market, you've got the Car Rental that creates cars for you as well, and we play in that game as well. So we're after quality, looking after the customer, making -- we're delivering peace of mind. And that's one of the reasons why you look at legislation change. Remember, it's unbundled service plans, but people are not too concerned with that because the value of that is 3%, 3.5% of the value of that car. But what does the customer want? Peace of mind. I bought it from Hyundai or a Kia. However, I want peace of mind. I'll take the car back. They'll sort it out for me. And for 3 years, I'm okay. And so peace of mind in our country is also we mustn't underestimate that. We're not a first-world country. You can't get stuck at [indiscernible] on a highway. You're just scared. So that's what you're buying, this peace of mind. And that's where Kerry and her team come in, making sure that you've got roadside assistance, you've got tech in the cars. Well, that that's the peace of mind that we're trying to sell.

And then just the competition in the space and how competitive you feel. And then just a quick follow-up question on the trends in the retail space in general. I think the South African consumer is fairly constrained. I just want to hear your thoughts on whether you're sort of selling more Renaults and Kias than Land Rovers, if that makes sense.

Yes. So maybe if I go back to the first question, I mean, obviously, used vehicles has always been a highly contested space. I think what you have seen is, obviously, given the economic macro, a couple of the small independents, I mean, are no longer around. So I think what you are seeing is you're seeing a bit of an -- I mean, amalgamation of into bigger players. We currently find ourselves, just from a pricing perspective is -- obviously, given the shortage of new vehicles translating into a shortage of used vehicles, we just find ourselves from a -- our price perspective, we've just moved up on the matrix. So we buy high. We sell high. I think from a margin perspective, we've seen an improvement in margin purely because of that dynamic. So I think if that answers that question, but we're finding the space now more contested than before.

Niall covers that in his slide as well when you talk about where the South African market has moved. It will cover a bit of that question, but he's got a very good slide on how the South African market has moved from premium to premium into the Korean brands. And even in that, how they've come down, he's got a very nice slide that he will take you through. And then if after that, we haven't come back -- answer to your question, we'll come back to him. Yes, there are shortages. It's a question of supply and demand. We've got less to sell. We sell at better margins. Our margins are okay. We're not complaining. Tomorrow, when there's more availability of new cars, we'll sell more, the margins will stabilize. So bottom line is still going to be good. It's just how you make it up. So at the moment, South Africa, U.K. and Australia, our preowned margins of sales are less in units, higher margins, where there's a shortage. Then if you look at the new ones, there is a shortage of those. So people are less fussy. When you wanted that red card with cream seats and only got it with black seats, you're going to take it because you're going to wait 6 months for another one. So the shortage has its own advantages, which is the customers have less choice and they buy. We also don't dish out the margins that freely. But our competitors are not doing it. You don't buy it from me, please go next door. The guy can do better because there's a shortage of these cars. So shortages created their own advantages, which is less units, better margins, give you the same money. The other way around, it will be sell more, lesser margin but still make the money. So it all -- it's of 1.5 dozen of another. Okay. Justine?

Just on the webcast, Osman. How exactly will you leverage GetWorth's data set?

How will you...

How will you leverage -- how will Motus leverage GetWorth's data set?

Yes. So maybe, I can talk to that. So I think currently, where we are is that GetWorth has got a pricing algorithm. I think where we are now currently is they give what we call a market price index. So once again, a competitor to your traditional M&M values, given, I mean -- and I think a couple of other dynamics in there, I think, would be also currently leverage some data sets on us to do predictive values in the future using AI. So I think typically forecasting future values on vehicles given the market segment changes and the actual upfront demand in those vehicles. So effectively taking velocity into account.

Okay. Thanks, Corne. Next question, could you provide some insight into the functional difference between a franchise and agency model?

Yes. So maybe if we can go a step back, i.e., franchise is particularly where we would acquire stock, and we would then own stock on behalf of a manufacturer. And we would then retail those out, and it would be at a discretionary price point. So the discount and margin that we retain is at our discretion. We -- in an agency model, we actually don't own the stock. It actually is owned by the OEM, and we then act as an agent on behalf of that OEM, and we then have a fixed price point from the OEM that we have to transact on.

So just on that agency versus the franchisee model, remember, you've got your saving on your working capital because you don't own the parts, you don't own the new cars, you only own the demo and the preowned cars. So you'll save on your working capital, but there's a certain -- remember, it's not in the OEM's interest to make you insolvent. They're going to keep you alive to deliver their car, look after their customers, service their car and make sure that happens. The margins are quite -- they're less because you've got less working capital. But if you take that out, they're more or less comparable. So yes, we were scared. When Merck first started this model, we thought, "Well, what are we going to do here?" But today, it's okay. It's happening in Australia with Merck as well. Mazda's thinking of that in Australia, not here. So BMW is on that model at the moment. Are we scared? No. We're embracing it. We fought a lot with the OEMs, but we got to a very nice place where our margins are withheld. We can still cover rental costs. We still got the workshops. We still got the parts, and we don't see a fundamental change in our business model. So what you lose on the swings, you pick up on the roundabout. Okay. Thanks, Corne. Well done. You're staying for your supper or for your lunch?

I can maybe just call on Niall, and Niall, if you want to come on.

Niall, if you want to come through, and Niall is going to talk about the importer side. He doesn't talk about Hyundai only. He talks about the importer, but I like some of the slides. He's going to will give you a good understanding of where we're going to. Thanks, Niall. [ Moss ], we'll try and leave you at about 12:20, and we should be back by about 1:20. So don't panic and rush into your cars and disappear. We'll go together and come back. [ Nazeem ], give them lunch.

So hi, everyone. As Corne and Osman said, I'm Niall Lynch, I'm the CEO of Hyundai. I thought I'd just introduced my colleagues here today. So Thato runs Mitsubishi. Thato, maybe you can stand up. So Thato runs Mitsubishi, and Shumani runs Renault. I was going to say that Gary wasn't invited, but as you heard, he's in Korea. So that's -- so I'm going to talk to you about the importer business. We compete like mad, but we do talk a lot. We're actually all good friends, and we -- so I'm going to just talk to you about how we run our businesses and what we do. So my first slide just shows you that we have long entrenched relationships with our OEMs. You can see that we've had the Renault franchise in South Africa for 30 years, Kia for 24, Hyundai for 22 and Mitsubishi for 15. Over that period, we've sold close to 1.3 million cars. Typically, in a normal year, excluding COVID, we sell close to 90,000 new cars a year. And you could see our market share of total market is 17.6%. And if you exclude LCV out of that, because we are a passenger car-focused business, our market share goes up to 23.6%. So very, very healthy market share numbers. This was an interesting note that came out from Absa and NAAMSA last year that -- last week, sorry, that 81% of the new cars financed in South Africa are financed at under ZAR 500,000. So I think it really talks to the affordability challenges that our customers have and that people buy a car on a monthly installment. So people come into our dealerships and say, "I've got ZAR 5,000 to spend or ZAR 4,000 to spend," and a deal is structured around that installment. And just to tell you a bit about the composition of the market. So you can see that 5-Door Hatch have a 40.5% market share of the passenger car market. And of that, we sell 34.3%. So we've got a 34% share of the 5-Door Hatch markets. SUV and crossover has obviously been a segment that's been growing over the last number of years. We've got 20.5% of that segment. And other would be MPV and sedan and a few others, and we've got 7.2% share of that particular segment. Just to talk to you a bit about our dealers. So you can see we've got 308 dealers throughout the country, and we've got 2 distinct models. So we've got -- Hyundai and Kia have got an integrated model, and that kind of means that we import, distribute and retail a lot of our vehicles. So you can see in the Hyundai space, we sell 78% of the dealer channel volume that goes through Hyundai. Kia is at 72%. Renault and Mitsubishi are lower. Typically, they've been part of multi-franchise kind of setups and have a larger independent network than the 2 Korean brands. So just to tell you a bit about our customer journey. So I think we've talked a lot about COVID and the migration to digital. But typically, what happens now is that 60% of our marketing spend is now digital. So it used to be -- we spend all our money on TV and radio. So the reliance on traditional methods is declining all the time. So viewers or customers that see adverts on the web or on their phones, and they will be routed to our website. If you take all of our website's visits for -- across the importers, we get 9.5 million visits a year. Those 9.5 million visits relate to 400,000 leads that we get digitally. So we obviously encourage customers on our websites to leave their details. Those leads are then routed straight through to the dealers, salesmen, who will contact those customers, either set up an appointment to go and see their customer or invite the customer into our dealership. Okay. So those 400,000 leads will then relate into 90,000 sales a year. So you can kind of see the hits and how that customer journey works. I was asked to talk about hedging and how does hedging work and why do we hedge. So I just thought the easiest way to explain this was actually just to put it in a calendar basis. So in January, we would sit down, and we do sales demand planning. So we have a lot of history. We know what the market is doing. We know what we're selling. And we have indicative orders from fleet customers. So we sit down, and we say -- and we order -- and we said we need to order 1,000 cars, as an example. We would then purchase forward cover during the month of January for that order. In February, we would submit an indicative order to the OEM. In April, we confirm that order. So we might top it up or reduce slightly depending on what's happening in the market. In June, that's the production month. So those cars are produced. We open the letter of credit. In July, they ship those cars, and we pay for them. And in August, they would arrive in the country. So you can see it's a fairly long lead time and process. But what it does give us is flexibility. So over that period, if the rand depreciates by 3%, 4%, we have time to adjust pricing, put pricing up. A car, you can't put up by 10% in one go. You need to do it in incremental pieces and typically on a quarterly basis. So hedging works. It's served us well over the years. When the rand depreciates, it maybe doesn't look so good. But typically, the rand depreciates, so it works well in our business. And we, as importers, spend a lot of time making sure that we buy currency at below our costing rates. So my job and my CFO's job is to make sure that we know what our costing rate is and we buy currency below that level. Just to talk about after sales. I mentioned the 1.3 cars -- 1.3 million cars we've sold since inception. You can see our warranty vehicle parc is 361,000 cars. Service and maintenance plan vehicles under those plans is 270,000, and our annual workshop throughput is 687,000 cars. So you can see, contrary to the misconception that once a vehicle is out of warranty and service and maintenance plan, they still come into our dealerships, and we still service them. We have 1.3 million parts pieces in stock, so obviously making sure that parts are available and, when customers come in, we can look after them as a key component. I think Osman and Corne talked about South Africans valuing certainty, and we think that it's very true, and we have long warranty periods in our vehicles. So when you buy a Hyundai or a Kia or a Renault or a Mitsubishi, you know that we look after you. So in Hyundai, we've got a 7-year warranty. Kia's 5 years as is Renault, and Mitsubishi is 3 years. New model launches is the lifeblood of running a brand, and you can see that we have a fairly busy year. Hyundai, in particular, has got a lot of new launches coming through. Kia had Sorento and Carnival earlier this year. You can see they've got Sportage, and they're launching Niro, which is a hybrid and electric car later this year, so it should be quite exciting. Renault have launched the all new Clio 5 and have a number of launches towards the end of the year as do Mitsubishi. So new launches create a lot of excitement for customers. It also gets dealer staff excited. It creates showroom traffic. So that's definitely a key component to running brand and selling cars. So just on the subject of EV, I put the slide up. We have a whole host of EV cars that we could bring in tomorrow morning. Corne talked about the challenge with EVs. I'll just take you back to my slide that 81% of cars sold are under ZAR 500,000. So the problem with EV is purely affordability. There's no doubt in our mind that EV is the future and that the price of EVs will come down. But as Corne mentioned 25% of the import duty on cars, so the real challenge is that 45% of the list price of a vehicle is tax. So it's quite simple. If you want to make EVs more affordable, don't tax them, but I can't see that happening. So we're waiting in the wings. We have cars that we can launch, but it's truly an affordability issue in South Africa at the moment regarding EVs. So that's me. So if there's any questions, I'm happy to answer them.

If you can just talk about the import duty. So on all of your imports, you pay that 25%. So obviously, you had a disadvantage to locally manufactured. And just over the last 20 years or so, how have you seen that distinction play out? And just in terms of cost competitiveness of the SA automotive manufacturing industry, how do you see that? Do you see your cars becoming more affordable, more competitive going forward? Or how does the -- that relative thing play out?

Okay, it's a tough question because I think if you look at the market, you can certainly see the South African manufacturers dominate the bakkie space. So Toyota, Ford, Isuzu have a real advantage in terms of bakkie sales. In the passenger car sales, I think it's -- if you look at our market shares, you could say that local manufacturing isn't really a benefit. And I mean I've no insight into what their financials look like or what their advantages are, but they're focusing on LCV manufacturing by a lot in the mainstays. So I think that's -- it's a hard question to answer. But I think if you look at our market shares, you'd say it hasn't really held us back.

But remember, the other thing is everyone else is importing vehicles. So let's take a typical example, Toyota. What do they make in South Africa? The Hilux, the Hybrid, the Ses'fikile and the Corolla and the Quest and the Cross. So those are what they make. But everything else, they're importing. So remember, yes, they'll benefit from this, but they're also paying the duties on those coming in. The imports don't equal the exports, so they'll never be a zero-sum game. And then to make the car, 60%, 70% of the parts are imported. They're paying duties on that. So you'll never be in a zero-sum game where what you import will make up in exports. It doesn't happen. VW, same thing. I mean VW already makes the Polo in South Africa and the Vivo. But what are they importing? Think of the Audi range, everything is imported. Think of the Golfs and thinks of the Tiguan and you think of all the T-Crosses of the world that are coming. They're all imported. They're paying the same duties we're paying. So no one's going to get that right because it doesn't happen where whatever you import, you export, you get a zero-sum game, it's not going to happen in terms of a currency. But from a duty point of view, we're all in the same game. They pay exactly the same duties we pay. We pay less because we've got smaller cars. We're big in smaller cars. And you saw Niall's slide that how many more smaller cars this country is selling than bigger cars. And that's what's keeping us busy, which is when they left the premium, they came, they keep played in our space. And fortunately, for us, our people had the vehicles, the Hyundais, and the Kias and the Renaults of the world. So Niall's quite right. It's a tough question to answer, but as long as we've got more imports than exports, the game will be equal. Go on.

Just a question on your international expansion. The one thing you haven't done is anything on distribution. Are there opportunities potentially for your imported brands to represent those brands as an imported distributor in other countries, geographies around the world?

We have asked the question on many occasions, and we have been offered some random kind of countries and places. So we're quite strict to kind of stick to our geography, and we're not necessarily sure that setting up in South America is a good idea. So it is something we look at and talk about occasionally, and we have been offered a number of African jurisdictions. But we're quite selective in terms of where we'll go and how we would do it.

And the other thing is that remember, these importers in the big jurisdictions do it themselves. I mean if you take Europe, they do it themselves. They're not getting any one. Australia, they do it themselves. And then you may pick up a South America, or do you want Ghana? Do you want Lagos? You've got to choose. So Africa, we're not keen on. They may be available. But in the matured markets, they do it themselves, and then I'm going to give you that piece of the action. So that's what makes it very, very difficult. We'd like to duplicate this in other countries, but it's not easy because the OEMs don't allow you that. Even with the 4 that we've got, I mean, the others don't even talk about.

Niall, just on...

[ Kwame ], nice to see you here.

Nice to see you too, Osman. Niall, just on the sort of the workshop throughput, are these unique visits, the 687,000, or just the total number of cars?

Those are the total numbers. So in certain circumstances, people might come in twice a year, but that will be unusual.

So if I asked you, on average, how much of your car parc do you think you would be servicing every year, the unique visits?

How much of my car parc?

Yes. So your 1.3 million cars. I mean when they're off warranty. So we're talking how many of those do you think? What percentage will be coming through...

We're servicing 687,000.

Yes. But I'm saying they're not unique though.

I'd say the vast majority would be. Because very few people do less than what they have 1 annual service.

Because they would do less than -- they'll do about 15,000, 20,000. There's 1 service in that period. So that -- I think the 700 -- I would have said 700, but [indiscernible] is more accurate.

Yes, maybe further that question, now, where would that after sales margins at come out of the warranty provision. Does it sit in import? Does it sit in dealerships? And is that generally -- I mean, that's obviously higher margin than just setting a vehicle, correct?

So that margin -- so obviously, the imported benefits from the part sales. So we would make money, you come in for a service, the dealership with our need these certain parts to that service. We have to supply those parts to the dealer. The dealer would make a margin on the parts and on the labor. Warranty would be paid for by the OEM, but warranty is a very small component. I think as our vehicles are getting better and better and the warranty claims against them are minute as a percentage of total workshop revenue?

So let's just start from the beginning, Sell the car for 250,000. A portion of that money, 3.5% will go into a Ockert with Kerry in mobility solutions. That number would have been computed based on the amount of servicing and what they need and things like that. Then you bring your kind for a service. Your car will be serviced by [ Niall's ] dealership or Gary's or Shumani's, even Corne's dealerships and Tata's dealerships. So they get serviced there. They'll be paid a market-related labor, market-related parts. That's in their income statement. So that's theirs. Whether Kerry manage it or Ockert, doesn't make a difference. They get the normal margin sitting in their books. But Kerry would have held us money and what you talk about 2.9 billion now. Kerry would have held us money and spend it across time. She will make sure that she -- when she is pricing the product that she's, a, she's competitive, and b, there's a margin for her. So that will be reached over time in her income statement and these guys release the money as they get it. So the annuity stream and the dealer is setting mobility solutions where they make the money, the buy and sell business is done here. So there is enough for everyone in the pie. So that's not unique to Motus. Motus would have done the same thing, but the Merck because there were a lot of maintenance plans, there's some more expense to Merck keeps that fund. You're driving to Corne's dealership to service your Merck. He sends a claim into him. Met pays him, but they will make money on that side, and he makes his money. So it's the same logic. It's just that on the products that we sell, we sell very competitive service maintenance at 1 warranty plan. So to make sure that our interest is to look after the kind of the customer because we want that customer to buy a peace of mind and have a car that's reliable. So we're not excessive. And that's why you'll always find tension between the imported retail and mobility. So there's a lot of tension because Kerry wants $100, these days but only want to give $80 because they want to make the car more competitive. So that's why we keep enough tension between the customer at the end of the day, gets value for money. But you make that because you get the economies of scale, ZAR 2.9 billion didn't happen over yesterday. It's the -- Niall talked about the periods of the years that they've had these agreements that happened over time.

Sorry, one more question, if I may. Just on Slide 34, you break down the average finance value and how that's changed from -- over the last 3 years, but can you maybe talk to just affordability or the average price of vehicles and how that's come down to take account on affordability and how that's changed the mix in your own import model?

So it's interesting. So consumers are buying down. So I think if you look at -- if you -- in simple terms, consumers a few years ago, you buy Tucsons. Now that you find that Tucson customers kind of migrate to a Creta and the Creta customers migrates to a Venue. So is definitely a down buying trend. But then you've got -- the opposite is also true. So last year, we launched 2 vehicles over ZAR 1 million, the Palisade and the Staria. Now I was very nervous about launching these vehicles because I thought undated price points, and we couldn't go above that. And both of them have been an outstanding success. So it's almost a tale of 2 kind of markets. So you've got a market with money that are quite happy to spend ZAR 1 million plus. And then you've got the consumer that buys on a monthly installment and comes to you and says they've got ZAR 4,500 make it work, and that's all I have. So I think those are the kind of markets we're playing in.

But by the same token, it doesn't mean the premium brands haven't lost out. Got a name Merck just to import 3, 4 years ago, 25,000 cars a year -- 26,000 sales, highest today 8,000. So the customer didn't disappear. The customer is alive and well, but the car disappeared, but that customer then went down. Now [ Niall's ] being a bit modest. He doesn't want to talk about his own brand, but I'll not be modest, I'll tell you about it. The Viano, the Mercedes Viano, fully spec is about 1.7 million. You take the Hyundai Staria fully specked all the bells and whistles you want with the seats turning around and moving and reverse cameras and the whole works -- maximum 1 million, 1.1?

1.1, yes.

Same car, different badge. All the bells and whistles because Ockert and I actually test drive these things when they come and he stresses them sometimes. But any plays it all is very buttons and he goes on speed control and then sport, he tests all these things that was with him when we tested it. But 1.1 versus 1.7. So what I'm saying is that there has been a loss. We're just fortunate that we've had the right brands to capture that customer. And that's why -- when I talk to the importers and if you walk around and you guys will see it, Hyundai is no longer a hole in a wall, the dealership. You actually go there, there's a coffee station. There's a place where you plug it, you plug your computer in, you'll get a free WiFi and because the customer has not changed because it's not only the 250,000, 300,000 customer, now you've moved to 1.1 million. That car wants a cappuccino. He wants a free WiFi and you want to plug in his computer. And I've been to his dealerships. I didn't go verified. I didn't go into and finds those, I just went to eat and [indiscernible] I could plug my computer in, there was a coffee shop and everything has now moved up. But that's a customer base is getting. And downstairs when [ Nissan ] and Corne and the guys will take you for a walk, you'll see. They made this place very customer-friendly with the little latest icons that customers would want.

So Patrice, I think what we're saying is there's been a big migration away from premium into more mass market brands. I think that's very obvious.

But fortunately, the quality of the mass market brands has gone up as well. So the customer is very comfortable where they are. I mean, Hyundai is one of the most economical warranty claims. I think the Koreans will have Niall when they see him. They always hug him because in terms of warranty claims...

You're giving away my secret.

Warranty claims, which they pay, not we don't pay, but it's the lowest warranty claim because it's such a reliable car now because we look at -- we track those numbers. He tracks them in his Board meeting. and they're very low, right? Justine, if there's nothing, can we break for tea now or coffee? Okay, so you guys have 15 minutes, and Justine will chart us back, and we'll be back to you after that. Thanks, Niall.

Thank you. Thanks. [Break]

Kerry, just get your colleagues there, just tell them to get inside, please. Malcolm, you want to come up? Don't whisper. Talk, Malcolm. Okay, perfect, now we can hear you. Can you hear me? Yes, we are. Is there anyone else there? Tell the bankers to come, we're looking after their money. I want to be around in 5 years from now. Over to you, Malcolm.

Okay, good afternoon, everybody. Good morning. So it feels like a long day. So my job is to try and transport you from the glitz and glamor of shiny metal objects called metal cars into the dull, boring thing of replacement parts. But hopefully, I will do that and try and excite you about the world in which I live in and I'm passionate about. [ Nick Binedell ] always says, he must be brief, you must be bright, and you must be gone. So I'll try to be brief, I'll certainly try to be bright, and I'll definitely be gone after lunch. So just in terms of where we are in this aftermarket world, just to give you some of the complexity. There are only 3 parts, categories in the world. There are those which are wear parts, which are mainly service parts, and some take longer than in the service interval. There's also a mechanical failure parts. So I can give you an example like touch kits, shock absorbers, et cetera, which over time based on where on the longer time cycle. And then there's crash parts, which obviously from accidental damage or hail damage or something like that, which we call accidents, and that's a different part of the world. But just in terms of a motor vehicle, the motor vehicle comprises 30,000 individual components, and that translates into about 2,000 moving parts in an internal combustion engine vehicle. They talk about going down to about 100 or 200 in an electric vehicle, but I'll talk a bit about that just now. But it's quite a complex business. If you do the numbers, and for me, it's all about the vehicle parks. So all I need is people to sell motor cars into the system because it builds me a vehicle park, which I will service over a long period of time. So in South Africa, we have 12 million vehicles roughly 3,000 model variants in the aftermarket, which is the installed base of the vehicle park and about 1,500 platform variants. So some of the model variants have to share the same platform, which means common parts to the platform, which reduces the complexity somewhat. If you take the 30,000 parts per vehicle, you take the 3,000 model variants that turns into 90 million different parts that a car needs in its life span. If you focus on the wear parts, which is a 2,000 active wear parts per vehicle and you take those same 3,000 models, you end up with 6 million active parts. But if we can reduce it for the complexity of the model variants being shared on platforms, introduce it to about 3 million active SKUs of vehicle users over its life plan. Where we focus is not on the 3 million vehicle parts. We focus on 135,000 SKUs individual part numbers, which are really the fastest-moving products in the market in the replacement part cycle. We're not involved in crash parts, and we stay away from exotics. So there's no posh components in our world, no exotic Jaguars, none of the top end market. We focus on the bread and butter where there's lots of volume of installed base. And our target market is ultimately to get to the fitter. The guy throws the box away. Ultimately, that's the end of the part's journey. Once it gets fitted in a vehicle, the guy throws the box away. So we target him, but we target that often through a reseller market, which is a retailer who services the workshop market or the fitter market, in former both and former markets. If I could move on -- the blue line here depicts the consumption of parts of a vehicle over its life span. So you can see it starts off and it climbs and it reaches its maximum at about a 7-year-old vehicle parc, which is where the clutches start going, the big mechanical failure start happening. The same -- and then it declines over time. And this is a value curve. So there might be more units moving, but they're moving down in the value chain. People moving into cheaper alternatives as the vehicle ages, and as it does less kilometers per annum. So if I can divide it up into the 2 big sectors, there's the OES market, which is serviced by my colleagues in the OE channel. That's the aftermarket parts business, which is normally up to about 5 years. I know in the Hyundai Kia, it moves to 7 years in warranty. And then it moves into what we call the independent aftermarket. Anything over 5 years old, maybe 6 years, depending on the make model, sometimes earlier, if it does lots of mileage, but it moves into the independent aftermarket, which is a pace in which we play. But we focus primarily on the market between 5 and 15 years old, which is where motors aftermarket parts plays, which is, if you take the area under the curve, that's the sweet spot of the volume in the space. So we target that space. There is another market after that, which we call white box, which is an entry specified product, which is a cheaper alternative for an older type vehicle. And that market is growing rapidly in our world, and we are looking at investigating entering that market on very selective parts to try and capture some of that volume because it is ultimately in our world, a volume game. The more you buy, the better you can negotiate prices, the better you can enhance your margin. And then right at the back end of that value chain is the second-hand parts which offered to very old vehicles just from an affordability perspective. So the biggest sector of this market is in where we play in terms of the volume and value. And the Motus OE channel plays in the first 5 -- 0 to 5-year-old vehicle market. I think the thing to stress here is the installed vehicle base, which is 12 million vehicles in South Africa. But if you translate that into a global world, it's 14.4 billion vehicles. I mean that's a bucket full of vehicles, and they're all internal combustion engines for now. So we talk about the EV and I'll talk a bit about later, but those vehicles are going to go somewhere. As they get replaced in Sweden and Stockholm and all those wonderful places, those vehicles migrate, Nigeria, Ghana, Zimbabwe, Mozambique and probably ultimately into South Africa at a point in time. So the parts consumption model is driven by 2 key things. It's driven by mobility, about firstly, the size of the vehicle parc, how big the vehicle parc is and how much it moves. And that -- the more it moves, the more it wears, the more it fails, the more mechanical repairs there are and ultimately, we sell more product into that marketplace. There are some global trends. Obviously, the EV market. We've talked about that quite a lot, and we see quite a lot of disruption coming over time. But I was tested in an internal combustion engine, I said the 2,000 moving parts. But only if you take that and replace it with an EV scenario. You only reduce your consumption of parts by 25 different SKUs -- 25% of the SKUs. So there's still a massive market for other products in an EV suspension components, steering components, tires, wheel components, bearings, all the stuff that hits the road. We also see a massive change in the global space in the distribution model. So there's -- the bigger guys are getting bigger, the smaller guys are getting smaller. If I can compare our market to 2 other markets in which we operate or looking to operate in the United Kingdom or in Europe, LKQ, which is a major player in the last 7 years, have bought 10 of the other distributors to form a massive conglomerate. And in Australia, Bapcor has made 14 acquisitions in also in the last 10 years. Just consolidating volume, consolidated purchasing power, dominating in the supply chain. And then the vertical integration model is all of us distributors are looking to add value through the value chain from the time it gets made to the time it gets fitted and I'll talk a bit about that right now. So we generate our revenue out of 3 different streams, revenue and profit. So on the left-hand side of the screen there, what I call product aggregators -- and in this space, we have ARCO. We have a company called AIM and FAI, which we own. And these are companies that buy products from various sources, aggregate them into a certain kit or into a range. They can't get all the products from 1 manufacturer. They buy certain pistons from this manufacturer certainly from that, create a value brand in terms of these and offer that to the distribution market. Good analogy here is the Bosch product in the aftermarket space world. Bosch manufacture very, very few of their components in the aftermarket space. They buy from component manufacturers, aggregate them into their brand and offer them to us as distributors. So very similar in that what they do there. Obviously, we expect the margin out of that process. The second channel is very much into the warehouse distribution, which is the volume chunk of this market, where we buy from these aggregators, we buy from other component suppliers. We store them in a warehouse and sell them through a retail network, obviously making margin, making availability, making the resellers' job much easier. You can get on demand supply. In this world, we supply to our resellers up to 6 times a day so they can have minimum stock levels with high availability to service the workshop market. And then the final part of the value chain in my world is the retail chain. We own 57 retail outlets in South Africa which adds another margin to the chain. So they buy from the wholesale distribution, and we control the margin on the final mile, which is probably where most of the margin in this whole footprint is made. So we make revenue and margin in all 3 chunks of this space. In terms of our product, it gets manufactured somewhere in the world at a factory, the manufacturing cost, if I could take it as $100. By the time it gets fitted by the fitter and the consumer will pay probably $900. So there's quite a lot of cost end margin in that channel and my world is to try and minimize the cost in that channel and extract as much margin as we can in the various steps of that product moves from factory to the final workshop or footprint operation. Obviously, you can't sell from factory to workshop directly. So we have these intermediate steps, which is a retailer, which is the little blue box at the bottom half of the chart; the red box, which is our wholesale distribution network. And because we have to import a lot of products, we've created the same thing in China. So we import stuff or source stuff in China, storage in MTS in Shanghai and then ship it on demand into our regional distribution network. Trying to minimize the costs throughout that process. Digitalization is happening. We've talked about it. We've talked about AI. So in an ideal world, the mechanics should be able go online, order a part, which should arrive direct from the factory. Doesn't always work that way, but that is where digitalization is disrupting this entire supply chain. So what we've tried to do in this space is break it up into what we control. So it's the same picture that I showed just now, how it moves from the factory base through the distribution channel to the end user. We've developed a catalog, which is called Autocat, which can connect all these dots ultimately. We're in the process of doing that. But ideally, a mechanic and log on to Autocat identify the party once and source it from any part of this channel. And in the visibility of the retailer stock, the wholesaler stock and the factory stock ultimately, so you can determine exactly when that part will arrive at his workshop for fitment into his vehicle. We've done quite a bit of the back office of this in terms of the supply from factory to our warehouse distribution. All that's done through electronic interface. So there's no human interface there. So it's all effectively an EDI process. And the movement from the warehouse to the retailer, we probably converted of our sales, about 30% already online, and we're growing that daily as we put more and more of our resellers online. And ultimately, we'd like to move it from the reseller to the workshops. So the visibility is throughout the chain. And in our disruption model, ultimately, we'll be able to sell from our warehouse distribution center directly to the mechanic on an online platform. And that obviously takes out cost hopefully improves margin and for us. And hopefully, that drives the technology through the process, and we're on that journey as we speak. Just in terms of the impact of the EV on the vehicle parc, I think there's going to be a lot of -- this is my personal view and aftermarket and general consensus view. It's going to take a lot longer in the aftermarket, although impacts will be felt a lot longer over a lot longer period of time in there certainly in the first world markets but more so in our local market. We talked about it a bit earlier. The affordability of EV over ICE. Just the longer distances that we have in South Africa, a EV vehicle works well in an urban cycle, because the breaking recharges the batteries, as you slow down at recharges because of the nature of the motor is actually a generator alternator. So you put it on an open road, the range gets less. It's exactly the inverse to an ICE engine. ICE engine is better consumption long distance and worse consumption in city, electric vehicles the other way around. And we've got long distances. So is Australia, so is America . So some of those markets, I think, will be slow adopters in terms of the space. And I think in my world, I think a hybrid is going to become a far more affordable option in the medium term than the EV, but that's just an opinion. So to try and determine this, I built a model. So all I can tell you about this model is it's wrong because it is a model. But what it shows here is I took the 12 million vehicles on the left-hand side of how many installed vehicles we have, I took historic replacement of new vehicle sales and scrap rates and are projected what the vehicle parc would do to the year 2050, which is a long time away. So it will grow steadily, pretty much along the lines of GDP, assuming we get our GDP to continue to grow. -- end up at about 14.4 million vehicles. Then every vehicle that was replaced was only scrapped the ICE engines, which is the green curve. So over time, as you replace with EVs, you scrap to the ICE engines and the green line shows you what the vehicle parc will do for ICE engines. So you see it still grows until 2040 and then it starts declining. So for 15 years or so, we've still got a growth in our vehicle parc, growth in mobility, more consumption of parts. And the curve I used for the adoption of electric vehicles in South Africa is the dotted red curve. It's an exponential line curve. I've played with about 10 different models here. So I have an S curve, I have different rates of escalation. And so we can change this as and when the data becomes available, but we can predict our future because we know where it's coming from. So we have a window to adopt our business model. If this model is wrong, we will fix it next year, it will still be wrong, but we'll get it -- as it goes through, we'll try and improve on the quality of the model and the predictability of the outcome. So if I translate all that into the purple line, the purple line is actually what that independent aftermarket grows at in that period of time. irrespective of the declining of ICE engines because there's also replacement parts in an EV, which obviously suspension compounds, as I said earlier, or some of the braking components, the steering suspension wheels -- and some of those products, we're not in yet. We're not in tires, for example, an opportunity in that space. But all the moving parts that touch the [ Tomec ] are what we will replace over time. So I think there's still space for us in a long time in this aftermarket and more so in Africa, there's 14.4 billion vehicles that are going to go somewhere. I think they're going to head for emerging markets. If you see what's happened in China. China, the motorcycle market was outlawed. The internal combustion engine was by law. I said you can't have internal combustion in motorcycles in the far big cities. So they're all want electric within 12 months, but the vehicle parc did not change. It just moved into the rural areas. So I think there's a space for longevity in our world. Where are we looking for opportunities. Obviously, South Africa, which is our base market, where we have 12 million vehicles. So we're trying to expand our footprint there, control more of the channel to market, more of the retail margin. In the U.K., we've just invested in the U.K. We see that as a great opportunity to do other stuff. That vehicle park is 35 million vehicles. Again, most of them are currently is the adoption there will be probably quicker into EV and it'll give us a good indication of how slowly or quickly our market will move in South Africa. Australia is, again, a vast market of 20 million vehicles, a population of 25, so a lot of vehicles per capita. -- big distances between all those cities. I was there last week, and I drove out of Brisbane on my way to a place called Dalby and there's a sign there that says the distance to Darwin and from Brisbane to Dawn's 3,344 kilometers. I mean that's -- and that's Brisbane's halfway there from Sydney. So there's massive distances. And again, the EV doesn't really work in there. So we're looking at the space there in the diesel spec sector of the market, which is the predominant market sector for the commercial vehicle sector in that space. So and in the Far East, we try to find more parts aggregators that do exactly what ARCO, FAI and AIM do just to control more of that full channel margin. So again, trying to take out costs, bring in efficiencies and exercise more, extract more of the value in terms of the margin across that channel.

So what's interesting on this slide that if you just take this to the other slide that this 12 million starting point is 35 million in the U.K. Now take this logic to the U.K. The U.K. sells 2.5 million cars a year. Electric was at 100,000, 150,000 at the moment. Yes, it's small. That's my point. So if you just take this in the U.K. 2.5 million, they're going to sell 200,000, 300,000 electric cars. But remember, the U.K. is no free lunches. That black taxi that you guys sit in, the petrol version is GBP 65,000. The electrical version is GBP 120,000. Government is only giving GBP 6,000 as a subsidy. So the reason I'm making that point. I was saying the 2 markets are not because we sell and tomorrow, this business is going to die. If I start here at 35 million, follow a similar graph in the U.K. but think about out of the -- I'd say 2 million cars are ICE engines. I don't believe that number is going to get any smaller. So this 12 million that you're seeing here. When I said at 35 million will end up here at a very similar '25, '30 number. And I'm talking 2050. That's why we mustn't think of this as a dying business. The dying is a long dying. It's 2050, 2060. Because ICE engines are not going anywhere in the hurry. And then like Malcolm says, the electric engines or the electric vehicles are still going to have 75% of parts. They're going to create more parts, which is sensors and those kind of things. Don't you think we're going to use more breaks in a battery engine, but they're going to heavier, they're going to start hard on the road. Don't you think your tires are going to take more strain, your breaks, your steering? All that's going to take strain. So just be careful that when you listen to private equity fund people in San Francisco, they think differently. We on the ground, we've got to think like this. Because I know Kerry and Ockert and all these guys been to San Francisco and they came is going to die tomorrow, then they come to South Africa. They in the real world. they realize, hey, this is great for 2050. Long after they're gone, we'll be enough selling parts. So we would just be careful that sometimes we look at these young people sitting there with their fancy suits in San Francisco telling us it's a dying business. Be careful. The real world is telling me something different. It's no different in Australia. Australia is starting with 30 million cars. With the 1.2 million vehicles sold per annum, what of that is electrical? 100,000, 200,000. So 1 million are still going to go into this thing from now to, say, for another 5, 7 years. And Australia has got a bigger problem than because of the distances. So if you look at them at 2040 and 2050, they're 20 million to going to disappear. It's still going to be -- it will grow because of ICE engine. So that could be 35 million cars. So all of the point I'm making to you is that in South Africa and whoever's got ability to invest in the kind of money we're doing in cataloging and making it easier and getting the part from the warehouse to a DC into the workshop, the faster you get it, there's money opportunities here. At the moment, there's too many people in the game play. Take out a few people out of the game. Then you ask yourself, well, Ockert and I and Malcolm crazy having tea in Taiwan in Taichung. Why were we there? We're getting what, 50%, 60% of our parts came from there. We own that guy. So he buys from a factory keeps the -- we own. So there's money to be made, 60%, then we ship, and it comes here and then we make a margin here. So you could say, but you shouldn't be in Taichung, I'm just scared, no. There's money to be made. That's why we we're in Taichung. That's why we're in Shanghai, in the DC. Those people have a high work ethic, there is COVID in Shanghai. You guys all read about it, stock could be stuck in a factory. They come to us. We break bulk and then the containers come to Durban. So that's why we're not going to never ever buy a factory. So Standard Bank and everybody don't get scared, we're not going to buy a manufacturing plant. But what we want to buy is more wholesalers, control the product from there to Shanghai container Durban to us. That's the idea because you must do more of that to get this margin back end. Once you get that margin, then you're smiling. That's the 1 way of looking at this business. The other way is that we've got to start going 1 step down, which we started with is get more into not maybe in small areas, but look at regions, we bought Rustenberg Midas. Today from [indiscernible] to Polokwane is ours because we own it. So now we will supply parts to the store. That means, firstly, China will do better. [indiscernible] will do better. And then from [indiscernible] to Polokwane we'll do okay, because it's all our parts. Previously, those guys maybe buying 40% from us. Today, they'll buy 80% with all coming from me, from Malcolm. So that's the kind of logic. It's try and capture backwards and forwards. And that's why Taiwan, Shanghai, Corne sold 5 cars less, Malcolm is picking up, don't worry he's pumping. Then there's Kerry on the other side that's pumping and picking up as well. So relax. -- don't let a NAAMSA number get you excited and so it's 5% less than last month or it's 5% less than last year. This is not a single dimensional business. It's got new, it's got preowned. It's part got financial mobility solutions aftermarket parts here. And then we take our hats off to Corne and Cobus by well, get the currency in the right place, get the right money at the right place. And you put all those together, that's what you see. So please don't walk out of your thinking or motor business. This is a well-oiled integrated mobility solutions business that takes you from there to there. What we're trying to do today is tell you there's a lot of moving parts in these businesses. And each one of these ExCo members are in the businesses, oiling that machine all the time to make sure it's efficient as it should be, and getting what they deserve. And that's why they're sitting here. If they want to earn a comfortable life, there will be in the professional become every bankers. But they didn't. They came here and they realized the excitement that -- the car can give you and the money opportunities can give you and the aftermarket parts and the solutions can give you. That's why they're sitting here. And the average age of exclude the 12 of us by the way we parc there. The average age of these guys will be 45, 46.

Yours is less than mine.

So what I'm saying to you guys is that I know it results presentation, we talk about results, but the point I'm making to you is that this is not a car business. It's an integrated, well-oiled business with some great people sitting here. That's what makes it happen. Sorry, Malcolm, back it to you.

So I don't know where I was now. There's 2 points I want to stress as well. We're going to talk about consumption is driven by mobility. It's also driven by infrastructural decay. So parts business is not a U.K. business. It's based in the U.K., 45% of its revenues from the U.K. mainly on suspension steering and weight braking, wheel parts. -- and 60 -- or 55% is in Eastern Europe, mainly Poland, Czech Republic, Romania. So it does give us a blend, slightly different product mix, older technology, internal combustion engine-driven as well. So I think there's more legs there.

To conclude, we're also quite innovative in our space, and Kerry stole my thunder earlier. We are in the 3D printing business. We started in Beekman's Canopies, where we use it to drive our innovation and design technology. We're starting our prototypes to make this really slow moving components, which we don't want to stock things like gaskets, pretty easy to 3D print. And even some of the plastic and rubber components is very easy to 3D print them. So we're starting to look at the cycle of how we turn that into a commercial proposition for our customer base. And we've got this thing called a [ KittyBot ], which we're hoping to launch in our warehouse in the [ East ] and by the end of the year, which will assist the man interface in the warehouse to make it a bit more efficient, a bit more accurate in terms of the technology we're using. And that's all driven through the IT space to make that a bit easier for everybody.

So having said that, just thank you. And if there are any questions that Osman hasn't already answered on my behalf. I'm quite happy to handle any questions you may have.

So just to be very clear, the parts in the early -- the first 5 years, that's nothing to do with your business or...

We do dabble in there where there's a high failure rate for a product, for example, is out of warranty. So -- if you pick up a [indiscernible] buy, for example, it's got a warranty for 100,000, and they do 50,000. We'll get it sooner than the 5 years. But by and large, we don't play in at 0- to 5-year-old window.

It is different by make and model, but Typically, it gives us a learning curve. We watch what happens in that space. And then when it gets to a certain number of vehicles with a certain volume, we'll start bringing it into our space. Sometimes you are bit soon, sometimes a bit later.

And then I want to understand the Asia connection. If you can just go through that in a little bit more detail exactly what it is that you do there. And then in the future, how do you see this business developing? Is there -- is it more geographic expansion, doing the same thing? Is it...

I know the world has got a bit of a fright now with COVID and all the implications of supply chain disruptions. But by and large, most of the manufacturing is moving to China. And that's where we are sourcing more and more of our product. Even if we source it from our local global distributors, most of them are buying it from China anyway. So it's just a different channel. So what we've tried to do there is to buy a source and store it in our Shanghai warehouse and then distribute that to the different destinations, which we operate. So there's an aggregation of demand profile, which gives us better volume buying power, it gives us better negotiation with the suppliers. So remember, South Africa typically is 1% of the global world in terms of the aftermarket. So the more we can aggregate volume, the more we have a better knock on the door to the Chinese suppliers to give us better prices and better volume. So that's the first one. And obviously, take costs out of the system by controlling through MTS. So in the previous world, we have got about 450 suppliers in China, all issues to supply a full container loads at a time because there was economic value to transport. But moving to Shanghai, we can make the volume go to Shanghai, and we can then take a mixed container into South Africa, we can lower our inventory levels -- basically either 1/3 of the cost of South Africa or 3x the efficiency depending on which one you want to measure. But typically, you can do the same thing in Shanghai with 1/3 of the people at the same cost. There's no other added cost in that place like security and all that sort of things we don't have. So just as an example, our warehouse in Shanghai, the stock take in December, it's ZAR 350-odd million with the stock, 6,700 was unaccounted for of the ZAR 350 million. And we think that ZAR 6,700 million is there somewhere I just didn't find it. So the accuracy just improves. We can ship from -- we pick on demand, countryside. And it just gets cross-docked in Durban, doesn't get stored and get ship straight to those demand centers. So it improves our availability at regional warehouse, which improves our availability at retail, which hopefully gains us more and more market share. None of our competitors have the same supply chain efficiencies that we're trying to drive. So it's trying to drive cost out is the 1 thing. And because we try to vertically integrate backwards to places like [ ACA ], we expect another margin. There's a lot of those in China because most factories are dedicated to a few components. So you need a parts aggregated to assemble them either into kit form as an example. Good example is a gasket kit. The gasket kit probably contains about 50 -- up to 50 different components. None of them are all made by the same factory. So someone's got to kit that process. That's what a parts aggregator does. And you can extract value and margin out of that process, which is what we try to do. So there's 2 things in that. So where I see the business going. Obviously, more and more market share in South Africa. We are expanding into our sub-Saharan African markets. We have an investment in Zimbabwe. We have an investment in Mozambique, and a small investment in Namibia, and hopefully, soon in Botswana, so trying to get the area around us and aggregate that, again that demand through our supply chain. So it's just taking a lot of those guys import themselves at vast costs. So we just try to take cost out of that supply chain, improve margins, improve volumes in the Sub-Saharan market. And then to go to markets, which we have a footprint in. So the U.K., we have a dealer network, Australia we have dealer network. Very similar right-hand drive, very similar model mix. Certainly, Australia is very Japanese orientated like we are. Europe is a bit more Eurocentric, but a lot of the Vauxhall are the same as the forwards the technology is the same, a lot of similar components. So it's -- it's where there's value that we can add is we'll go. Eastern Europe is an opportunity because we're really there. And we're starting to source more and more product out of the Eastern European countries, specifically Turkey and Poland. And maybe we could do the same MTS in Europe at some point in time to supply into the market, but as well as extract product out for the global consumption. So as to play as a global player to have more relevance to the bottom line.

I hope he answered your question. So Anthony, the thing is that there's no need to buy a lot more in China. But if you see aggregators similar to ACO, you buy them, you buy an aggregator, where that gives us skill. But the warehouse we've got in Shanghai you want to spin that stock fast as you can because you get the economies of scale. We've got 17 people, and they work long hours and they dedicated what would make in 25 or 30 people, but that's their ability because doesn't need a big investment. So we'll get a few aggregators, get more stock in. But the stock from there is not meant for South Africa only, and that's Southern Africa. We're looking to move some stuff through to the U.K., and then we'll move stuff them through to Australia as well. So this is the hub in China that must spin faster, get you better economies of scale, but we don't work for longevity. There be 5%, 6% margin made in China. You make 10% in the U.K., you make 10% in Australia. So this 5%, 6% is what you want to grow. It sounds like a small number, but when you turn over ZAR 3 billion and ZAR 4 billion, big numbers. But there's no further investment. A few people may be, maybe one or 2 forklifts, and that's it. So that's why that's the hub. Remember, that didn't happen by mistake. 2 years of losses were there. I think to you guys didn't see it because it doesn't abate. But there were losses in that. Today, it's turned around and it's making us money. So you do more of that. And then from there, you can supply U.K., Australia, South Africa, Australia, South Africa, again, then supply into Southern Africa. So it's getting...

Probably another point is FAI, the supply base to FAI is very common to what we buy in South Africa, very similar manufacturers. So we are now aggregate -- we've been in the process of aggregating all that to extract better volume through those negotiations with our supply base. We've just been in Turkey last week to do exactly that. We buy a lot of our suspension components from Turkey, and they do as well. So it's a case of aggregated those together to give us extended value out of the scenario. How we got to Australia is one of ARCO's biggest customers is in Australia. So that's what led us to Australia. So we're trying to leverage off the contact points that we have around the world is to ready supply, how do we enhance that supply? How do we use that expertise in our bigger Motus world, et cetera, et cetera? So there's a lot of levers, a lot of moving parts, excuse the pun, and it's...

And remember that between Ockert [indiscernible] and Malcolm because of what we did at FAI, we're getting proposals once a week, virtually.

Yes, from all over the world. Even Mexico...

Blocking at the moment. We're just blocking and say we don't want that. We've got to stick to our knitting, which is U.K., Eastern Europe, Australia, China and South Africa. So that's where we're blocking at the moment. We had Mexico, you had something from Turkey. They come from all over the show because now we're in the market because we know what we're doing. But we're blocking at the moment. We just want to do well in the markets that we're in because we believe that once you know a market and you do it well, you'll get much better economies of scale. And that's why FAI [indiscernible] named all of it. That's not where we want to stop because it's the big aggregator here. We need to get another aggregator there next to it. That does different things. And then we'll get the economies of scale in with 35 million cars in the car park, thank you very much, a space for all of us. That's why we quite like that market. And remember, right-hand drive, same language, Roman-Dutch law, they all work on the same principle, [ stop ] provisions, [indiscernible] provisions. They all talk the same language kind of thing. Australia is the same thing. I mean, Malcolm was there last week in Australia, and we're looking at that. And we think if something happens, then we'll watch the space. They take time, unfortunately, they don't happen quickly because you've got to learn, understand, check the market, check the parts, what do they sell, and is it a market that's great?

I think it's not just about aggregating the volume, it's also about spinning the balance sheet and using credit terms. So some of our Chinese suppliers, we get up to 270 days credit term. So it's wonderful you can spin the balance sheet quite nicely. So your working capital cycle is good. Locally, we don't get that. We get up to 60 days locally, but all the negotiations in China, we try and move it from 60 days to as much as we can. So the best is 270 on average, we're probably at [ 180 ] days credit term gives us lots of balance sheet to play with.

Malcolm, thanks. I know that you like your voice, and you like your strategy...

[indiscernible] voice.

We need to get Ockert to come up and talk to us about the financial numbers. So Ockert, over to you. Justine, are there -- is there anything -- no calls -- no questions and over to you.

Thanks, Malcolm. Almost thought I'm not going to get a chance, but thanks, Osman. So when we prepared this, I think the reality was Osman said, this is not about financial numbers. Don't talk about financial numbers. Let everyone understand this transformation journey that we're on. Then we issued a SENS yesterday, and now I have to talk about numbers because everyone asked me outside. So I think the first bit is, I mean you've heard now from all these business leaders. You can see how much transformation is taking place. Yet at the same time, sitting at the center, you have to balance this out with the key word being -- you need to be transforming while you're performing because as soon as you get completely out of balance between these 2, something is going to give. If you're not -- if you're only performing, you're not transforming at all, good luck to you in 15 years' time, if you're only transforming and you're not performing today, then I suppose you won't last that long either. So yesterday, we did issue some guidance to the market now and where we see the end of June numbers. And initially, it may surprise some of you that we're doing that well. Yet internally, we've been seeing these numbers as a consistent base for the last couple of months. That's why we've got so much confidence even sitting today [ and it can ] give you such a narrow range. I know in the market, what you see at the moment is a lot of senses going out by saying, we're above 20%. We could also have given you that, but that would have been unfair because we can already see in this range where we are. We sit with a team. There's 502 [indiscernible] that gets consolidated. On the first business day, we already had a flash. So that's why I've got May in the back. It's only June left. That's why I'm so confident about these numbers. And depending on how it goes, we'll see where we sit in that range. So obviously, the earnings is one story, and I already had 2 e-mails yesterday about are there some one-offs in there. Why is the number so much higher? The reality is you do have the earnings and [ HEPS ]. So no, we did not sell any large properties. I didn't sell any large businesses to get to this number. It's all around the business performing well. Similar to what we've had when we spoke about the half year numbers, you look at the importers, they're in the right place. I mean you've heard when [ Niall Lynch ] was talking, he is controlling his stock well. He is buying the [indiscernible] currency, we're actually navigating that well for a number of years. We're very close to how the [ FECs] and the volatility of the currency is working. We are backing the right brands, who's giving us the right products. And you can see the importers performing well. Similarly, to the retail. The retail at the moment, you can hear, there's high margins. We are backing not just one OEM, if one OEM [indiscernible] a concern in a Durban market where maybe the factory can't produce enough. The reality is we're backing 23 OEMs in South Africa. We're backing 19 OEMs in Australia and 18 -- 19 in the U.K. and 18 in Australia. So whatever sells at that point in time would be able to make the money. Similarly, the mobility solutions, a lot high activity. You can see, I mean, all you guys had to travel a bit today. So some of you like to work from home. You certainly had to drive around today and actually realize how many vehicles are actually on this road. So a lot more activity is starting to take place. So that churn within that service and maintenance plans that you heard earlier about that is all taking place. So you're putting more into that pot, you're taking just as much out, you're keeping the workshops busy. So all of that is adding to the pot. Of course, they're funding some portions of car rental. You would have seen that as a business where suddenly now that the international tourists are starting to come back, you can see the car rental industry is starting to pick up. In the mobility solutions, we fund a little bit outside of Motus. Then we also have the car rental business ourselves, which has picked up and the utilization rates have increased. So you saw all of that in the SENS. And then this little hidden gem, which you can see in [indiscernible], I'm glad you're all in the room today. Of course, maybe you don't hear Malcolm talk often enough. He is so passionate about this business. And it is as if people just don't get how much money you're making out of this. I mean that business we bought in FAI last year, August, you will decipher it when we eventually produce the financials, but you will see what a bargain that was. I mean we are just producing phenomenal results out of that. So those hidden gems all exist. We're working at them. And like I say, we are performing while we transform. Looking at the numbers, though, there's still a little bit of a hidden piece in here because you can see the attributable profit, the earnings. It went up 45% to 55%. That's the guidance I'm giving it. But then you look at the HEPS and EPS and luckily, you can see there is no funding and there -- there's no big sale of properties. This is all operating profit. It's 50% to 60%. So there's an additional piece. There's an extra 5% that just comes almost from nowhere. And the reality is this almost dark spot that luckily some of you would have seen the SENS today as well is, yes, we have been buying back shares. So as this share price has been very volatile and every time something happens in Ukraine, people think that are affecting our market and our share price is dropping. We're sitting on a huge amount of cash being generated through our operations. We can utilize that just as well as either buying a business or looking at our own business, which we know very well. And we're buying back shares at 5 and 6x multiple because I know [indiscernible] where my profits are going. So the reality is we have been buying a huge amount of shares. And I was even surprised when I double checked this number through [indiscernible] saying, are you sure guys that we really buy 36 million shares back since unbundled. [indiscernible] again, okay, we did, yes. Reality is [ at unbundling ], we had 202 million shares. This is November 2018. For those of you who haven't maybe been following that long. In the period up to last year, financial year, we bought back 16. And then in this current financial year, we've actually bought back 12. Now it's not my business to tell the market what needs to happen. If the market punishes you for something that happens in Ukraine and Russia or an earthquake somewhere in the world, that happens. The reality is we are very agile. We look at those opportunities. We are cash generative. And like I said, our operations are performing well. We're at probably some of the lowest levels of debt we've had in this business for a while because as you all know, the stock hasn't got to the right levels yet. So we sit with the big cash flows. And you actually have this ability to do other acquisitions, if there's gems out there like Malcolm gave us, I'd rather buy that. I mean, for sure, we want to grow this business, but we also have the opportunity to buy back shares. So just to put it in perspective, you can see the total number of shares, and we didn't just keep the shares. As you can see, we cancel them. So never in your life you're going to have those shares again. So where we sit today, there's only 178 million in any case left. Even if I don't sign this or do anything, there's only 178 million shares left. So those were already canceled. Then over and above that we obviously [indiscernible] some of those because they don't have [ bonding ] rights if you keep them. And we work on a weighted average number of shares at the bottom. So that's the number of shares that's being used in that calc. So obviously, you have to weight them. So at 173 million shares for this period, that's a number you will use for 30 June. But just as much, you need to remember, you bought most of these shares pretty much in the second half of this financial year. So I haven't got quite the benefit of even those shares that I've purchased because you work in a weighting and your analysts will all know that. Going into the following year, you actually immediately start losing that. So if I don't do any additional share buybacks in the next year, I'm probably going to land up at about 165 million at the end of next year as a weighted average number of shares. So if my earnings don't even grow at all, you're already going to get a benefit on your [ HEPS ]. So just keep that in the back of your mind because sometimes it's a bit of a dark spot. We did issue that SENS today in any case. So you can see we did buy back more than 6% since the AGM. And then for the bankers in the room, I have to thank you guys. I mean we were quite busy. Maybe the operations are working right and transforming. But at the same time, we need to look at our needs and where we need to end up. So what we have been doing is we've been refinancing our local and our international debt and core business [indiscernible] I had a few sleepless nights to make it work. But thanks to the participation of all the bankers that's actually in the room. So we've been able to refinance our local debt. So we're now all the way out to 20 -- It's for another 3.25 and 5.25 years will be our next maturity date. So it goes quite far out at very good rates, and we'll give you that full disclosure during the year-end presentations. And also, our international debt, we've extended with another year, and that's in pounds, and we've extended that with another year out as well. And that just gives us enough feel in the [indiscernible] and making sure that if any big opportunities arise, we've actually got the liquidity to take advantage of those. And yes, well, look, if there is strategic acquisitions, we'll look at it. Dividend distribution, we're going to continue with. And if there's any share buyback opportunities, we'll also look at those, knowing where the numbers are going. So that's a quick snapshot. It's not a financial presentation today. It was around the businesses and understanding this transformation journey that we're on and hopefully, you've seen enough of that. So that's it on the finance side. Osman, do you have a final word maybe?

Just any question on the finance that we have that maybe you -- that's a burning issue for you guys. We did do a detailed SENS announcement. I know Justine used to get irritated, she [indiscernible] said, no, you misunderstood the 2 or 3. And eventually, she got there, and that was a great SENS, Justine. So we gave you all the information. We gave you a good background of where our business is, where it's going. There's good people in the room, managing this business. But we'll take 1 or 2 questions before we go to Nizam and let him tell us how from running a dealership in Durban near the harbor to running something in Victoria and becoming a building expert in 5 months [indiscernible].

Guys, just on the buybacks. Obviously, all the buybacks have up until now have been very successful. I just want to sort of understand what metric you use. At what point do you see your own business as cheap? And when would you stop doing buybacks? What sort of -- what's the catalyst for that?

Do you ask the tailor where he is, which cotton he uses, and how he stitches things, you doesn't. So we know what we report. Like Ockert just said, we saw these numbers coming, and we could see what was reasonable. And so we use our discretion at what we see. And based on that, we look at the multiple, and we say, what are businesses trading at and then based on that, we make calls. That's the one side of the equation. The other side of the equation is what acquisitions are on the pipeline. So we watch that all the time because I'm sure you've read that Corne is busy with Sandown Motors. I mean we're just waiting for competition and commission approval. So it's not like it's all in aftermarket parts or nothing else, but he's got that acquisition. So we watch the CapEx on the one side, which is Corne eats a lot of money in buildings, so we're going to watch him. We've got to watch acquisitions, both in Corne and in Malcolm side of the business, the cash generation and then we look at what multiple we're trading. We take all those 3 factors in, then we make a call. So it's not all about -- it's not all about just the multiple.

I think your question really goes around how do you decide where you do your capital allocation. So I think what is quite clear is that -- the first point of call is you're making sure the business that you've got is performing. So if we require more stock and we need more vehicles [indiscernible] that would be the first point where the cash is going to go. Second point, adjacent to that would be around to shareholders looking after them. So we've been a consistent dividend payer and we'll continue to be like that because a lot of our shareholder base is around also the ability to get cash out. I mean we do have -- that's our shareholder type of base and what they're looking for. So the next point is then the additional cash that you've got available here, either going to look at the acquisitions and you always weigh that up against also what you have for the share buyback. So it is part of what the ALCO looks at. But if there's a really good deal that can transition this business into the future, that will probably have preference over the share buyback at a particular point in junction, but we never lose sight of the share buyback opportunities.

I mean, the one thing that I mentioned was Niall and Corne, they can eat to billion quite quickly in stock, but at the moment, there is no stock and they're managing their business. But if they come in and say there's 1,000 cars [indiscernible] saying, buy, please don't wait, then that [indiscernible] cash. So we're going to watch these things. And like Niall showed in his slide, from the time you place an order at the time you get the [indiscernible]. So a lot of things happening in that period, and they meet every Monday morning. And then we meet once a month, and we say, "okay, what do you need"? And he says, "I'm okay, I'm not okay. I need more," and that's how we juggle. So it's just -- it's CapEx buildings, it's CapEx with these 2 guys with their stock as the importer and the retailer, then we've got a shot at Malcolm, he is not spinning his balance sheet fast enough. We'll watch that. And then we've got to look at opportunities as well. We got plenty of opportunity. Let me tell you there's other people out there with 12 and 15 multiple of earnings looks good. We see Excel spreadsheets from [ now until 2035 ], and we're all billionaires by then. It doesn't work for us, that 12 and [ 13 ] multiple doesn't work for me. Sorry. And then you leave a lot of that behind. So there's no one answer. It's a combination that we look at, and we spent a lot of time on that at the center. Any other questions? Before we call up...Justine, is there anything on the call?

Yes, nothing on the webcast.

So I know you all worry. Are there enough cars, take a walk, see how many cars they are available? You'll be also surprised that these showrooms are all full. We find the cars, we make it happen, and there's all of them [indiscernible], you need to talk nicely to Corne and get some Mitsubishi. [indiscernible] some Mitsubishis downstairs as well. Check that Hyundai showroom is full, the Kia showroom, the Renault, I think they're taking 2 showrooms. Shumani, do you know [ Nizam ] quite well as you took 2 showrooms. He's got his [indiscernible] I mean look at Navara, look at the nice vehicles that [indiscernible] the other, we find the cars, don't worry. If the customers out there, we're going to find the cars and sell new preowned workshops, it's all going to happen. So the one point -- I don't want you guys to think that we stand here in arrogance in a country where there's high unemployment, there's electricity problems, the ANC is going for reelections. We're aware of those. But by the same token, we can put our heads in the sand and worry about those things or say, guys, there's opportunities and what do I capitalize on. And that's what we try to do. Make sure that we look for the opportunities, we grab the opportunities we can get and generate the profits and the cash. So we're not insensitive to what happens to the market. It's just that it's where the priority lies. By the same token, the floods happen, we're out at the check of 3 million. I mean we got the Hyundai guys involved. Our guys, [indiscernible] flew down to Durban to meet [indiscernible] and handed over ZAR 3 million within 2 days. We've spoken on Monday morning and Tuesday went and delivered the money. When the riots happened in KZN, the guys organized planes from Renault and Hyundai and got food there and we wrote out the checks. Our libraries, we have 60 libraries now. So we're continuing with that. [indiscernible], we've got 120 clinics now in the townships. That's happening. So we're not forgetting where we're coming from. We have our feet on the ground there, but that doesn't mean we're stopping capitalists. We've got to look after that as well and make sure we deliver to shareholders what they deserve, and we look after our people. I mean Michelle spends every day looking after the people, making sure in terms of wellness, all the stress people are going through in these difficult times. She and her team are worried about that. So we've got people worried about the right things at the right time. So you've got Michelle and her team worried about people, their wellness, are they getting educated, are you employing the right people transformation at 50% target, not for the group, senior management, middle management and junior management, that's the target, and she's pushing everyone. So this is not about business and cash. It's about all the safe things that happen, and there are people here that get sleepless nights about charity, society, HR, IT and technology -- everyone is worried about a different thing. When you put all this into the pot, that's what you're getting. So we don't stand here arrogantly and smug. We're very humble about what happens, and we're appreciative what the market does to us. We know the high unemployment rate. But again, you'll say, unemployment at 35%, then we say, look at the taxpayers. There's still 5 million, 6 million taxpayers, they own cars don't they. That's what we want to look after. I can put my head in the sand and said, look after the people with social grants, but that's not my [indiscernible] on this side, which is a 6 million taxpayers. That's what we're going to look after. So we give you the numbers. We report all these good things, but we do it with humbleness and with our feet on the ground. That's what it's all about. It's no arrogance and look how smart we are. It's not about 1 or 2 individuals. It's not about only us as EXCO. It's a 17,000 people in Motus that do all these things that make us look good. So it's -- everyone makes a humble effort, do what's right, and that's the end result that you get. So on that note, without any arrogance and things like that, I'll call Nizam. Nizam, tell us how you became from a [ DP ] to a building expert, and spend ZAR 150 million of my money?

So good morning to everyone. Osman, thank you very much for the introduction. I don't think I need to say much more, Osman said it all. What a day to celebrate this occasion and thank you, Osman for hosting the investor conference in our brand-new multi-franchise facility. I think we have lots to be thankful and grateful to and to celebrate. If I don't do a good job, which is I'm tasked to present the facility and take you through a tour, there's a 5-minute video to even show you the actual facility. But if that doesn't do good in the 15 minutes that I have, Malcolm, by the way has taken 5 minutes of my time, so it's cut it down to 10. You will have a virtual -- you will have a tour. We have a few tour guys that will take you around after the presentation, and I'm sure you'll get a better feel and touch of the entire facility, and we can take it from there. Just a bit of logistics. After you're done with the tour, you will come upstairs onto further down the bottom where we have the canteen, that's where lunch will be served. You will have a sit-down launch, et cetera, and you're most welcome to mingle around that area as such. So here is my presentation. Thanks, Osman. Okay. I can see there. Okay. So I've been tasked to showcase the facility. Osman is correct, 18 years with Motus, I started in Durban. Fortunately, I'm up here when the floods happened, but we feel sorry for the people. I have the task of being there 2 weeks ago because we gave up the Nissan business in Durban, we had spent 12.5 years, and it was actually quite sad to see the damage that has gone through that facility. We actually honored the lease, which we subleased to the new guys effectively, and this is the last month of it. So technically, we're out of that facility effectively end of this month. Showcasing the Menlyn multi-franchise business, whilst I might stand here very proud. As Osman mentioned, we're quite humble about it. We're excited. And I think there's a lot of opportunity that we can celebrate and look forward to. One of the occasions with all the disruptions that we've had, we had the Nissan Dealer Awards 2 weeks ago and we're moving out of [ 10 ] facilities into this facility, we won the mega dealer of the year for Nissan. Added to that, 2 days ago in the SA car market, the Nissan Navara has been recognized as the best 4x4 Navara in its category. We have a lot of work to do in the other brands. We're definitely in the right direction. And for as the ZAR 150 million that Osman mentioned, I have no other choice but to make sure that the other brands are up in the [indiscernible] currently at this moment in time. So we have 7 showrooms. We have the Hyundai showroom, which you will see that starts at the far corner. Next to that, we have Kia, we have Renault, we have Nissan, and we have our own brand, which Corne spoke about being the Motus Select brand, currently 40 dealers in the network, and I think it's still growing over the next couple of years. Over and above that, we also have the Auto Pedigree brand, which sits next to the Kia showroom, and that comes with all the rental costs, which Osman spoke about that has the year around turnaround that comes back into the facility. This is the largest facility of Motus across the country. The size of the facility currently is 19,300. So it's quite a big place to walk in terms of the tour. But if you don't really want to walk, you'll see the virtual tour on the screen, and we also have the electric golf carts to take you around. So for those that don't want to walk, I'm sure I can get the tour guide to take you on a golf cart and show you what it's all about. Below that is the breakdown of all the different sectors in the business and what the square meter is, et cetera. The most important part you can see parking is always a problem in a dealership. I think when stock is less, it's really not. When we started this facility, I thought it was quite huge. It actually is getting a bit small for us. And the facility we're used to sitting at, we haven't done anything, but it's more or less an expansion space that we could look at for the future. To give you a panoramic view of the facility, the front view, that's what it looks like. We had a drone footage taken off. You can see all the respective brands in there. Aligned to that, we have the Motus Select showroom, which sits centrally to the entire facility. And between Nissan and Renault, we have our service throughput drive-through with 2 separate lanes for customers to enter, and we have the same structure between Kia and Hyundai on the other side. This is just a different view from one angle. And that's another view from the other angle. And as you can see, the traffic, the parking, et cetera, that we have. So as I commented, whilst it looks quite like a huge facility, we're quite busy, parking space taken up. And what you're not seeing in the -- on the second floor, which you currently sit on in the back where you drove up this morning and the third floor, we have 250 parking bays. The top floor houses all the new car stock. The second floor, which is aligned to this basically caters for staff parking. We run our parts distribution from the top, which is your panel business. And at the bottom sector, we have pretty much our fast-moving parts that services the workshop, et cetera. So if we go brand by brand, we look at Hyundai, that's the new Hyundai facility. And if we look at all the brands, this is the latest corporate identity that we have across this entire facility. So we've made the investment for the next couple of years before any of the OEM decide to change, I think we're quite comfortable. We've got to make some money first and return ZAR 150 million that Osman talks about that he's invested in this building. So you can see the modern concept that we have. We have all the service desk at the back with the customer lounge type of a thing and a coffee bar. So you have interaction from the workshop to the new car floor. And hopefully, our salespeople, which I think are very good, can convince a customer that comes into the workshop to upgrade and buy a new car, et cetera. So that's how Hyundai look. This is the Kia look, also the brand-new CI that's been launched. There's just a couple of dealers that have got this so far. And I think over the next year or 2, Gary and his team will pursue the remainder dealers to continue to upgrade in terms of this current CI. That's the Nissan structure, the whole CI look. This is 1 of 4 dealers in the country that have done the CI, which Nissan has just launched. And I think the rest will have to occur in the next year or 2, [indiscernible] set up like the other franchises. That's the Renault franchise, later CI as well. And as I explained, that's a Motus Select brand, which sits in the center of all the OEM brands that we have on the facility. This is something that I need to discuss. So we've designed this facility. It took us 6 months basically to put this into order. So as Osman kept on saying no pressure, we are under some real pressure to get the facility going, but I think priority was to get the brands moving. So we moved each brand in stages because we were tied down to leases across other facilities, which was quite huge rentals that we've paid. So it made quite a lot of sense to put these brands into one facility from a cost-effective point of view. But we felt that we want to keep customers. We want to have some sort of a setup for our staff that can attract customers to come up, have a couple of coffee. We put a canteen, we put a new look. This is a workspace for customers to come in if they book their cars, for example, -- if there's express servicing that they want to sit and have a coffee, do some work, while -- especially with COVID and now we've transformed, they can make use of these facilities pretty much whilst their car is being serviced and they don't have to come back to [indiscernible] at a later stage. You will have the opportunity, and this is more or less where your lunch is going to be served to view this sector [indiscernible]. You can see there this privatization where we put kind of chemicals. So there's a bit of privacy if a customer wants to work, et cetera, and that's really what it is linked to this, which you're not seeing here, there's 4 boardrooms. So for Osman's team, Corne's team, for all the execs that live in this area, they don't want to travel for customers that want to book it. Just walking through this morning, I already had Shumani booked the boardroom for Monday. He's got his EXCO with 22 people. So we have 4 boardrooms here. One is the 20-seater. We have two 10-seater boardrooms, and we have a 4-seater boardroom at this moment in time there. So that's a look, we'll have a reception upstairs, a lady will control the bookings, et cetera. There's one of the boardrooms that's more or less a look and feel that you would get when you walk about. All these are access controls. So Corne and I have put the latest technology, if I can call it, you've got facial recognition, you've got fingerprint entrance and you've got access cards that will give you a leeway to get into these boardrooms. This is our service receptions, pretty much the same concept across all the brands where it's opened between the new car showroom and the server set up, linked to this, although we have catered the upstairs for customer to sit. We have coffee lounges in each of the franchises for customer to have a cup of coffee in the morning when they come through, et cetera, book their cars in and they can leave. On the right-hand side, you will see a sneak peek of the service arena. It's one of the biggest workshops that we have. It comprises of 45 [ workbase ], 24 of them are [indiscernible] lifts. As the business evolves, we pretty much can put more lifts into these sectors and as the throughput comes in or increases as such. Currently, the throughput in this business is 80 cars a day across all the brands. This is our parts arena at the bottom. We have one consolidated parts department, similar like your workshop with 2 different drive-through receptions. These are where all your fast-moving parts are situated, et cetera. So there's easy access to the workshops. We have a separate dispatch and receiving bay, which doesn't impact customers that come in the morning. So for all of you, ladies and gentlemen that drove in, you came in through one exit. If you look straight down, we have the setup with our parts dispatch and receiving takes place. The parts comprises of 2 floors. We're showing you the front floor. The one upstair is basically caters for all our panel. We have a lift on that sector on the first floor that gets the parts up to the second floor. And all parts panel is distributed from the second level. In line with the new facility, we looked at all the green initiatives. And I think sustainability is important. As Osman explained his given names ESG to 2 or 3 people. I don't know what letter he is going to give me, but he's finished all his letters in the ESG structure. So we thought hard and long about this. Pretty much what we've done here is we've installed solar effectively after we moved in. And in the last 3 months. So part of the deal has moved in here effectively in Jan and the next set of moves we had was in February. The solar has been installed towards the end of early March. And we have seen, if I put a number to it, savings of 146 square in the last 2 months. We had a ZAR 400,000 electricity bill, which was quite huge coming from -- across the other facility by installing the solar panels, et cetera, we saw ZAR 140,000-odd saving coming out of it. The electrical engineer, which is [indiscernible] contractors has been quite good by assisting us and giving us the right direction. And there's a view that we need to spend a little bit more money by putting a few more panels that we should see even a further saving coming out of that. In line with that, we pretty much have installed all LED lightings. All of them are sensor driven. So if we look up this facility and staff forget to put the air con off or forget to put a light off, it shuts off on its own. If there's no movement in an office as such, automatically the lights go off. You've probably been to the universal bathrooms upstairs that we have, and you would see that before you walk in, it's quite dark. There's no lights that are on. The moment you walk in, the sensor kicks in and the lights come on. So all that's been taken care of. We also have installed JoJo tanks. So we have 7 tanks that caters for 10,000 liters each or 70,000 liters of water. Three of them are used for recycling water, which pretty much we're running at this moment in time in our wash [indiscernible]. We believe that we're utilizing 80% of the water, 20% you allowed for a loss of 10%, and that's sort the drainage on the floor, et cetera, where it goes through and evaporation. -- that currently servicing the 80 cars or being washed that are coming through our throughput every day, should we expand in the near future, which is our plan, we can convert 1 of the 4 rainwater tanks to increase the recycling plant and get more cars washed out of it. Okay. I spoke about the solar. We also have a waste management company that manages the waste for us called [ Pandae ]. We don't actually do the recycling here, but we do all the separation in this business. It's working quite well for us, and they take -- once all the particles are separated and they take it off site to do the recycling. I spoke about the water efficiency, et cetera and the tanks that we have. And pretty much that's the showcase of this facility. There's, I think, a 4- or 5-minute video, which will give a better view, which you can look at. I think the guys are ready, they can play it. [Presentation]

Okay. That's it for me. All the simple questions, if there are, I can answer. The difficult ones, Osman will answer. Justine?

Any questions on the facilities or anything like that? Nizam, well done. I mean you migrated from a [ Nissan ] DP into handling 7 DPs and what a beautiful [ slide ], so congratulations and well done. I'll leave the team in your hands; you take them on the tour and things like that. So hopefully, we've given you a feel for this business, not only in terms of we sell cars, but the different services we level -- we deliver, the different types of businesses, how we generate our profits in different businesses, the leadership is young, agile and dynamic and [ they are here ] to stay, they're not leaving tomorrow. So that's the message for today is that this is a sustainable business not dependent on new car sales only. It's one product, but there's plenty in this business. And with the people that you've got with the different levels of service, the investment into IT and innovation and technology they're doing, this is a very sustainable business. Now you could argue and saying this facility is getting outdated because people are going to get -- people still have to service their cars. We have to keep parts for them. We have to deliver from our sites because that's where your documentation is done. But now to put this into perspective for you, the Mercedes-Benz dealership in Bedfordview, 18 years ago, costs ZAR 110 million, 1 dealership, 1 franchise. Fast forward 18 years is paying ZAR 150 million for 7 dealerships. What economies of scale are you getting? Nizam was talking of 80 cars per day service. That's not the target. The target is 120. So don't stop at 100, it's 120.

Thanks, Osman.

So what that's telling you, you pump the economies of scale, like you do it in aftermarket parts, I want these has to pump economies of scale. When your pump economies of scale, you sell more parts, there's more workshops, there's more money to be made for all of us. And that's what gives us the sustainability. [indiscernible] one Taj Mahal in waterfall, go open up one dealership, you're better to make money, but come to a place where you do multi-franchising, get the economies of scale in the way we do business. There's money to be made. The one thing we haven't showed you, it's not there, but car rental is going to be on those premises in the next month. So you lift car rental, yes as well, but we couldn't put it up in time and not get all the stuff going. So what I'm saying to you is that hopefully, you have a better understanding of our business, you have a better understanding of our leaders, you have a better understanding of what this business is all about. So before I finish off, I can't thank all your team. That's why you are here to thank all because I'm going to miss somebody's name and they're going to start competing. So I'll thank the group and then when you thank your people because I don't know all your people. So firstly, from our perspective, I mean, we've got to thank Justine and Uvasha and Barbara for getting this presentation under Ockert's leadership. So they prepared all the SENS. They get all the numbers sorted out, and I look clever by leading the final reading, but that -- I'm not the guy that does all the hard work. So it's under Ockert's team. The presentations, I mean, to Kerry and Niall and Malcolm and Corne and Nizam, well done. It was a great presentation. To all of you guys, so thanks for getting it together. The best gen team normally sit in the ivory tower in Sandton. We brought them to a dealership. They're looking very smart and smart, but they deliver great service. So well done to them. So I sort of thank those people. But I don't know if I forget a lot of people. So that's why I got my right [indiscernible] to make sure I don't forget any names. So to management, thank you and for you guys attending here personally, we appreciate you guys taking your time off and trying to understand our business so you can analyze it better and make sure that this is a sustainable business, nice to have our bankers. Nice to have some consultants with us as well like PwC sitting here as well. So it's nice for you guys to understand what we do and acknowledge what these people do. They work hard every day to produce these numbers. And it's nice for you guys to acknowledge them as well that they are here not just for their salaries and bonuses, but they deliver a service to customers and then produce the results that Motus is producing. So thanks a lot to everyone. We'll be disciplined, but Corne, you want to thank your team because I'll forget the names of your people.

Great. Perfect. Thanks, Osman. So I think this probably [indiscernible] Nizam and the team, I mean, in particular, [indiscernible], I think you guys have been busy for the last couple of months, trying to get this facility ready. So I think thank you for that. I think then [indiscernible] and Justine, I mean for all of the hard work you guys are putting in over the last 1.5 weeks, running around, being here all hours of the day. So thank you for that. I think it's a good showcase. So yes, thank you for that.

Thanks a lot, everyone.

We're going to break now, but...

So I've got 5 gentlemen at the back, [indiscernible] DPs that run the facility with their management team that will put you guys into groups of maybe 10 or 12. We have to do 3 groups, it's fine, or 4. They'll take you around and do the tour of the dealership. From there, they'll guide you and escort you to where the lunch is going to happen basically. And from there, you can either leave or come back or mingle, et cetera, as we got our launch this afternoon as well.

[indiscernible] I mean just [indiscernible] lunch for this group is if you go on this floor to the door on the further side, you'll be guided into the [indiscernible].