Motus Holdings Limited (MTH) Earnings Call Transcript & Summary

Good morning, everyone. I think it's about, what, 2.5 years since we last saw each other, excluding my Board members and my management. So it's nice to be back here. I was seeing Ockert, fed up talking to a screen and not seeing people and not meeting people because I'm a social animal. So thank you very much to each 1 of you guys for making it this morning to us be in person. To the people that are listening to us on the webinar, nice to have you listen to us again. And a special welcome to -- I've got a full house, I think from my Board members. Oshy is here, Saleh, Bridget, Fundi, JJ. So all my Board members are here, excluding my Chairman. He's -- couldn't make it. And then I see quite a bit of management here as well. I've seen our company secretary taking notes, Ntanda, nice to see you, and nice to see the ExCo members here. And I'm surprised to see so many bankers, that means I must be the flavor of the month. So nice to see my fraternity from the banking world. And then obviously, all the analysts and people who will follow us. And then we've got Brunswick as well, so it's nice to have them. And nice to see ex-audit partners as well and new audit partners that are all looking to be here. So Deloitte's and, I think PwC also here. So we've got everyone here. So once again, thank you to each one of you guys for being with us this morning. Thanks to the [ germs ] who you guys battled. I know you couldn't fasten the button at the top and the tie was a bit of a problem. I'm talking from experience, so don't worry. The only guy that doesn't battle with fasting the top button on the tie is Oshy because he doesn't pick up weight. He stays like that. I've known you for the last 25 years, and that's all I saw. I saw then and I see it now, it doesn't age. But anyway, he's got good genes. Yes. So I mean, most of you must have seen what our results look like. There's quite an agenda, don't worry about the agenda. So, I mean, we're pleased to report to you that we could achieve these results. And don't forget, when you're reading the results, read them in context that COVID is not gone, so give us a bit of a break. So what you're seeing here is all happened in COVID, China in severe lockdowns, Australia in lockdowns, U.K. in and out of lockdowns and shortages of cars, interest rates going up, inflation going up. So just don't look at the numbers and say, well done. And think of the environment we were operating, and then you look at the results and you say to the Motus management team, the team did a great job getting these results. So we can see that ZAR 92 billion turnover, ZAR 5 billion operating income. And the pleasing thing that my CFO boasts about, he calls turnover vanity, but he calls cash-generating reality. So he's proved himself correct by taking ZAR 5 billion of his operating income and turn it into cash. And I think that's the beauty of what we've achieved here, is that whatever profit we had for those accounted one-on-one characters, we did change the profits into cash. And I think what that helps is that it just gives you a very good foundation into the future because you've got the cash now to do things you want to do. So exceptional results to the Motus team. And the one thing I didn't do, I should have done, we've got colleagues that are listening to us from Australia and the U.K. as well. And the other colleagues in South Africa, but -- welcome to my colleagues in the U.K. and Australia as well who are listening in, and they all contributed to this great results. So to all the Motus colleagues on the webinar, thank you for all your efforts. It's a great result. While all this was happening, we were fortunate as well that we managed to grow market share, and I'll give some stats about that. And the Car Rental has done quite nicely. It's recovered from where we were. I mean, 2 years ago, grew in dire straits. In the pre-COVID, we had about 26,000, 27,000 cars. We dropped to about 8,000 cars in COVID. We're back to 17,000 cars, and the target's 20,000 and then ultimately, we'll get to 25,000. So Car Rental have been a good help as well in getting our business stabilized. We'll talk a bit more about digitization and innovation. We were all in it, but I think what COVID did to us, it accelerated those efforts because we're not seeing people. We had to talk to them on screens, various screens, and you want to reduce paper. So all we did is we fast forwarded some of those initiatives that we had, and I'll talk a bit more detail on that. And our Mobility Solutions division drives the innovation as well, because I suppose you get more innovative people in that division and they can help the thinking. But with buying and selling cars and parts, it's a bit harder. So we've got the people here, and now they're lifting the standard up, and I think we've got about 4,000 people now in that family. Remember, we employ over 17,000 people. I can't have 17,000 innovators. Who's going to make money? So that's why we control them and Kerry controls them in Mobility Solutions to innovate, and hopefully, the rest of us implement, and then we achieve the kind of results we have. I'll talk a bit more about ESG. I'll give you some details, but this is not a fashionable talk. We packed ESG in our business, which is the environment, our social responsibility to where we do business and the governance. Fortunately, for governance, I've got quite a few CAs in the business. Some CAs don't do have good reputations, but those with the good reputation are with us. And they keep my governance under control, so we're very fortunate with that. We've got supply chain optimization. It's impacted 2 sides of our business. It's not only impacted the cars, which we all know the semiconductor problems, the war in Russia created problems. So we have to manage that on the one side. And on the other side, with the Aftermarket Parts. The ships are not coming fast enough from China, then we have costs going up. But we're very privileged that we've got [ DC ] in China that helps us. So when we locked down, they're not in lock down. When they locked down, we're not in lockdown. So we manage the 2, and we're managing to get our stock coming through as well. But Malcolm, where's Malcolm? And the team do a great job in managing all the logistics that go with it. Remember, it's not all parts from China, but China is a big supplier. Taiwan, you've got Europe, you've got local as well. But that supply chain management, I think, under the circumstances, was well managed. And remember, our ports' are not free flowing either. We're going to manage that backlog there as well, but I think the guys did a great job. I'll talk a bit more about acquisitions, there's a slide on acquisitions, and we'll go through them in detail, and they've been very positive for us. Bolt-ons and some were completely new. And the multi-franchising, I'll talk to you guys about. And some of you may have attended our session in Mainland where we did the first big multi-franchising, 1 address, 6 dealerships waiting for the 7, 1 workshop and you get the economies of scale. So it's working quite well, and we're benefiting from that. But we saw the benefits also in Klerksdorp, Rustenburg and Polokwane and Germiston, so it's working quite nicely now that we've betted it on the multi-franchising. And then the shareholders and the analysts will be very pleased that we could grow the share price. And -- not so much the share price, the earnings by, 72%. And we're not selfish guys, we'll share some money with you, with our shareholders, and we'll give them about 71% growth in their dividend as well. So we're quite generous people when it comes to our shareholders. Remember, all this didn't happen by mistake. There's some -- a very strong foundation that sits underneath these numbers. Just not the accountants, the operators. They sit underneath this. And these are some of the foundations where we build on. Governance, I've talked about the structure, and we also get surprised by our structure. It's the integrated business model. We knew that when we unbundled and that's how we wrote when we unbundled. But this family of -- you import the car, you distribute, you've got a retail division and then you rent the cars, you've got Mobility Solutions and then you've got Aftermarket Parts. That integrated business model is our success, and that's what makes us proud to be here and deliver these numbers. Because what happens is that not every division will fire on 6 or 8 cylinders at any 1 point in time. Some may be at 2, some maybe at 4, some will be at 8. That's the one thing. The other thing about this integrated business model is they have different characteristics. What do I mean by that? If you take Mobility Solutions, cash generative. It doesn't get debtors, so it's always cash. [indiscernible] cases, they got money. It holds money, it all about close to ZAR 3 billion. Cash generative. AP, it's annuity type of income. So if we close shop today, those guys have to run a book for 3, 4 years before it will come to an end, so there's annuity type of income there as well. The Aftermarket Parts business, again, cash generative. It's like what you would call Pick and Pay [indiscernible]. Control your stock, spend the balance sheet 3, 4 times a year, it generates cash. So what happens is that if they make a 8% margin, the cash is not 8%, it's a lot more because I'm splitting that 8% 3 times, so that's what makes that business quite attractive to us as well. So on the one side, we're capital heavy, maybe with stock. But we've got 50% of our business on the other side, which is the Mobility Solutions and the Aftermarket Parts that gives you cash, A, B, annuity type of income. Now, the Aftermarket Parts business. During that first lockdown, those 6 heavy weeks of lockdown where you guys couldn't go anywhere from July to December, we had our best 6 months. We could never repeat that, I mean, that was hallelujah kind of moment. We had it for 6 months. Why? What happened is, that we were in lockdown, China wasn't. So all the stock came with. The minute our ports opened, we had 167 containers. That 6 months, we have all the stock. All guys were battling no stock, but our people were not battling. We had the stock. That's why I'm saying this integrated model, don't just look at it that because there's cars and parts and all. Think of the ingredients that make up their business, the cash and the annuity type of income. That's what makes this business a success. That's why we do get annoyed sometimes when we get referred to a new car business, a motorcar business, we get a bit annoyed because it's the family that makes up this whole thing. And the family has different characteristics, and that's the beauty of this model. Obviously, our stakeholders are key to us, the OEMs, the suppliers, the people in China and Taiwan, our bankers, our funders. It's nice to see that they've joined us today. And we're very privileged that our bankers, when we went into COVID, we -- listen to us. We had meetings with them, Teams meetings obviously, but they came forward. We'll help you. We'll give you a moratorium on that. Work -- how can we work with you guys? So the bankers have been great to us, our funders. They've been great to our customers. Our book with -- not our book, the banks books with our customers will be close to ZAR 50 billion. That's the amount of money they put into our cars with our customers. So that's not my balance sheet, but what I'm saying is that when they open their books, it's good for us because people can buy cars. So it's a 2-way stream. So we work well with the OEMs, with the suppliers, our funders and bankers, and they make us who we are as well. And because of the way we've ran this business and the cash we've generated, it will help us implement our strategies, and I'll talk a bit more about that as well. Innovation, I've talked about. And most importantly, is the people in this business. The average age excluding me an Malcolm is about 46 or 45. We're the old guys, we're about -- when they tell you sell by date's expiry, we're getting there, Malcolm and I. But the youngsters are very energetic, bright, hungry and making things happen. So the average age of the ExCo team will be about 46, 47, you take the 2 of us out. We still add value, we think we add value so that's why they keep us around. But what I'm saying to you is that the leaders in the business are young, energetic and vibrant. And that's what pulls these people together, and we can achieve all these results. Because we're like in a supermarket. What we don't sell today is going to go stale tomorrow. Our cars don't go stale, but I've lost that sale, and that's what we're all about. It's we make sure we make the sale today. Tomorrow is another sale, not another day. Now on the one side, I don't want to get you depressed with the trading environment when I'm driving this kind of results, but you're going to find the happy medium. We live in an environment. We don't live on our own. We live, this is our environment we live in. Yes, there's a lot of headwinds. I mean, if you think of the headwinds we've got, the consumer is not feeling good because interest rates are going up. There's an ANC election coming. When we go home tonight, we may be at [ load shedding ] Level 2, and then it could become 5 by Friday. It's those kind of things. But the one thing you learn about South Africans, that I've learned it more in the last 3 years, is that we're very resilient people. We know how to operate. And why do I tell you that? When I sat in the Board meeting, the U.K. Board meeting and with Ockert and I, and Niall sits with us on the U.K. Board meeting, we had to explain to the guys, inflation happens, guys, this is part of life. They couldn't understand. Inflation is 9%, how we're going to cope? That's not going to come to end, relax. We spent about half an hour explaining inflation, price increases, we'll manage, we'll get through it. But that's in South Africans is going to teach a lot of people. It's how to work in difficult circumstances, inflation, higher interest rates, all that kind of thing. We've adapted to that model, and we do it well. And we noticed it even in Australia, that we had to explain this concept and say, guys, [indiscernible] prices will go up. They'll go up by 4%. Your GPs must go up. Everything, your costs will go up and bottom line would still grow. So we're very resilient people. Yes, we've got all these headwinds. We've got political and unemployment and volatile currency. But one of this is new, which one of these items you haven't seen before? You've seen all of them before. We [indiscernible] in the global financial crisis. At that time, our banks were not our friends, but they were not lending too much money, but luckily, our friends now. We went through the global financial crisis. We went lockdown, heavy lockdown. Two years, partial lockdowns, and we're still here. And not only Motus, but you look at the South African corporate world, it's still alive and well. So on the one side, we've got to put reality. But on the other side, don't forget it's not hero to zero. We're not going to become zero tomorrow. And yes, the GDP growth, I mean, we're talking of 4.9%. We benefit from a low base, we came up. But from the higher base, we will still want to grow 1.8%. Yes, we need the 4s and the 5s to help unemployment, but that doesn't mean the 1.8% is going backwards. It's still growing. And the foundation we have that we've built in the last 5 years since unbundling is a very solid foundation, and we think there's a lot of opportunities as well. Like I said, the United Kingdom, I think the 9.4% now has gone up even after that. In August, they're talking of 11%. And everyone -- and you know, I feel sorry for the analyst, they said, when it's 11%, it's going to 18% now. But then goes 3%, no one was talking about 18%. But now, they delivered, now it is going to 18%. But things are possible. It will come back, it's just a question of time. They may go through another 6, 8 months of difficult period, but it will come down and normality will come back. So they're expecting quite a bit of headwinds with inflation. But remember, they're wealthy countries. GDPs are strong, good consumer spending, so they'll carry it through. And obviously, they're going through a bit of increased personal taxes and increase in interest rates, which was foreign to them. It wasn't foreign to us, it's foreign to them, but they'll get used to it. But again, when 2.5% is high, then they're not talking our language. No, 9% for us is high, and 10%. For them, 2.5% is high. So there are headwinds. I'm not sitting here and telling you there aren't any headwinds, but I'm saying that we are resilient. We'll get there, and we'll get through these headwinds. And you can see Australia as well. I mean, that's -- it's interesting. You can see how many wealthy people they are there. When GDP growth was 4.2%, it's growing 4.3% in bad times, so you can see they're more optimistic. They have a problem sometimes with China because a lot of their raw materials go to China, so they do have that. But it's a strong economy. It's -- bursts back, the new car sales. If they had more, they could have actually sold 50% more vehicles if they could get more stock. So yes, there are headwinds, but all I want to say to you that just balance it with what we've done in the past and how resilient the economy and we, as people, as traders are. Okay. Let's get back to the business. It's always pleasing when you look at these numbers. For a country that sits in the tip of Africa that we did 464,000. Our projection for this calendar year is between 500,000 and 520,000. Next year -- I mean, our calendar year will give us between 530,000 and 550,000 next year, and we're talking 490,000 in our calendar year. Now, a country that's gone through a lockdown with all the headwinds we've had, with political issues, with power outages, and we're still producing these numbers. The good numbers we produced are about 680,000, 690,000, the best. And yet we're at the 500,000 number. So I think we mustn't take the consumer for granted. He is there, he's alive and well and he's spending money, not only the consumer but even the corporate world is spending money. Motus has benefited quite nicely out of this whole thing. You can see that we grew our market share in the importer side by 24.5%. And it's slightly different to the market share when you look at the 22.4% because what happens on the imported, they import all the vehicles, but they don't sell every car to the consumer because we've got independent retailers as well. But then we've got our own -- our [indiscernible] and [ territories ] where we don't import, we sell on that side. And overall, it comes at 22%. Now when we talk to you the last time, we were at 20.2%. And now we are 22.4%. So we benefited from what happened in our country. And the reason why we benefit as well is that, remember, the consumer is buying down. Where they could afford ZAR 2 million, they afford the ZAR 1 million. The ZAR 1.5 million afford ZAR 1 million. And when they come from the [ ZAR 750, 000 ] down, they play in our space. What's our space? Hyundai, Kia, Renault, Mitsubishi that play now our game. And we're very strong in that game. because of the products we have, the quality. Hyundai has the best warranty amongst all the OEMs. And it's not that we write you a blank -- big check for warranty. The products are very good. So good product, what the consumer wants at the right place, and then the family benefits from all the value chain. So we're very privileged that we could grow our market share in these difficult times. This just brings you closer terms. So you can see on the new car sales, how we benefit from. In South Africa, you can see that market growth share, 21%. The U.K. was battling because they couldn't get enough trucks. They're big in trucks. They've got 90 truck dealerships. So they didn't get enough trucks from Germany. Obviously, the Mercks were not coming in, and that slowed down a bit. So that's where their problem was. It wasn't more on the car side, it was more on the truck side that they battled with the new ones. Australia stood still. Australia, like I said, could have sold a lot more cars, but there wasn't enough stock. But remember, they get very little from South Africa. They get most of the cars from Japan and Europe, and those economies were battling to give them cars. Pre-owned, everyone took a knock here, you can see because there wasn't enough available. So the shortage of new, people held on to cars, they were not selling the pre-owned. So that's why people held on. And it's in all the markets, it's not unique to South Africa. Now, a lot of you will look and say, but why don't you guys trade in cars that are 9 and 10 years old? They don't fit our dealerships. We've got creme de la cremes. We got [ Taj Mahals ], they look beautiful. We can't put a 10-year-old car and say come buy it with comfort. But I can't give you that comfort. It's 10 years old guys. It's going to break down tomorrow. It doesn't suit my image. So we stick to the 1 to 5, 6 year old. We can -- we look at the cars, they've got good quality, we can back them. When you bring a 10-year car, look for somebody else. We -- if you trade them in, we normally auction them or we find traders to sell them. But we've got to maintain a quality. Customer service, quality, we've got to live by our brands. I don't live by a second-hand brand. I live by a brand for new cars, and that brand comes at a price, and that's the price I'm going to maintain and look after my customers. So we've come down on the new cars. We -- last year, we were virtually one-to-one, but it was artificial because you had all the de-fleets from the Car Rental companies coming in. So that's why we were a bit inflated on the pre-owned. But this 1 to 0.7, 1 to 0.8 is perfectly happy for -- I'll be happy with that. Let's just tell you where the revenue streams are. So you can see that except for the pre-owned, which we talked, everyone came to the party, and revenues grown quite nicely. This is quite interesting, and that's why the family helps here. When someone's struggling, another member of the family will pick it up. And you'll see a similar slide when we talk about the profit contribution by segment as well. So you can see the import is at a great run, and they're all sitting here today. So Niall's off to Hyundai, and then Gary limps a bit at the moment because he did the comrade, so well done for him. He can still be here today. I thought he'll be very stuck in to Deep Heat and Voltarens. And then we've got Shumani, he's got Renault and we've got Thato who does Mitsubishi, so the importers have had a great run. The retail and rental. I mean, the revenue hasn't been [ debit ], but you'll pick it up just now when you see the profitability. Mobility Solutions for them, turnover is vanity, look at their profits, and I'll show you the profits in a minute. And then Aftermarket Parts, did quite nicely as well. So this is a more interesting slide because this is not vanity, this is real. So you can see how the profit grew in the imports, so the imports did a great job growing that profitability. And these are the 4 importers I've talked about. And then on the Retail and Rental side, everyone came to the party. Car Rental came to the party, the New Cars came to the party, U.K., Australia, they all came to the party, and you can see the profitability has been quite nice. And everyone helped achieve this 25%. Like I said, Mobility Solutions, we never worry about turnover. We look at the profitability. And this profitability is cash. There's no debtors, no creditors, you bank. And then I talked about the annuity stream distinguishes us as well, so it's very good income. And Aftermarkets, I told you about the benefits of an Aftermarket Parts business. Both in South Africa, I'll talk about an acquisition that we did in the U.K. that did very nicely for us, and that will help the buying power in China as well, and Turkey and wherever else we buy from. Okay. When I look at this slide, maybe I should have rather just retire after this slide, then I don't have to talk again. Because you look at these slides, and we're very blessed with our business, with our people. And you look at each of these percentages, I mean, I can't go through every one of them, but you can look at them. I mean, operating profit at 31%. And then, you can see what's happened with what treasury and Ockert have been involved in, is the share buybacks. And you can see that benefit if you look at the EPS and the headline earnings, look at those percentages, they far outshine the operating profit growth. So you're 31% there, but look at that, 65% and 72%. And that's the benefits of the treasury and Ockert managing the balance sheet in terms of debt, the interest bill and the share buyback. So they've managed that very well, and the guys did a great job because there, they can't talk to all of that, but they just have to do it themselves. They talk to the bankers, look what's in the bank account and they buy and they buy shares, and things like that. And the accounting team and the treasury team, they -- great job to manage that. And then obviously, when you do well, you want to share your wealth, and that's what I was talking about. A [ ZAR 7.10 ] dividend, it's not something to be looked at in very different eyes. I mean, it's a very positive number, and you can see a lot of our shareholders will be getting [ ZAR 4.15 ] before tax on that number. Like I said to you, we generated very good cash here. It gives us a strong foundation for the future. The operating profit is virtually our cash generated. So what that is telling you is that when operating profit will have the depreciation, but we use that depreciation for our capital expenditure, so we can net those two off. And despite paying a dividend and tax and we could still generate this, the guys have managed the working capital well. It's not as best as we wanted, but they've managed it well. So the depreciation covers your CapEx, the working capital management then pays for your tax and for your dividend, and that's why you can virtually manage operating profit and cash generated. The net asset value has done good for us. You can see ZAR 81 a share. And the other thing about our net asset value is, remember, we're not a fluffy business. You can touch us and feel us. You can touch my cars, you can touch my parts and you can touch my property. And the property here is at cost, not at market value. So could I would imagine if we put our properties in, this ZAR 81 could be maybe ZAR 90. So what I'm saying to you is that we're not an airy-fairy company that you can't touch and feel. And I've got much good [ rule ] in my balance sheet. We are a real company. And if I put the properties, we've -- I think we've got about ZAR 7 billion worth of properties. We've got ZAR 7 billion worth of properties. Now, that's at cost. Can I add another ZAR 1.5 billion to that number in terms of market value, then that thing could go off. So we're very pleased with where we are with our net asset value. Ockert will tell you all about the great work he's done on the EBITDA to interest and the EBITDA to debt, so I'm not going to talk about that. But you as shareholders should be pleased that in these times, we can produce a 17,8% return on the invested capital. So your capital is not wasted. It's earning, it's working hard. We're sweating your asset for you, and I think that's what it's all about. You can see we're sweating a number for you as best as we can. We do make mistakes, but as long as they're in the 10% category, and the 90% we're doing well. So on that note, I'll hand over to my CFO, who will take you through the numbers and talk in a lot more detail. Thanks.

Thank you very much, Osman. It's always pleasing to talk to good numbers, so a lot more comfortable talking here now than what we were maybe at the height of COVID. And luckily then, we only had a blank screen, so it was much simpler, so I didn't have to face the shareholders head on. So very pleasing numbers. As Osman said, probably exceptional performance, one of those who give the kids a little gold star if they give you these numbers. But how do you get there? I mean, we already had that question outside saying, listen guys, your revenue only grew by 5%, your operating profit up 31%. And what did you do? A few specials in here, something I need to miss. Say, guys, what you actually need to understand is how hard we sweat what we actually got. It was a little bit like when you go to these bazaars and there's pancake stands, and the poor aunties, uncles at the back are trying their hardest to bake as quickly as they can, but the queue just get longer. And it's a classic example of what Economics 101 looks like. Your demand completely outstrip supply, that supply got a bit choked along the way, and you had to make hay with what you got. So make hay all the sunshines, we've got good margins. We didn't take it for granted. You'll see that we were as conservative as before on costs. There's so many decisions that gets taken between that revenue line and the operating profit line on a continuous basis. So how do you make those decisions as fast as you can is by having very good systems giving accurate and complete information as quickly as possible. Because in this market, things just change, and they change quickly. And today, you sit with an oversupply in a particular model, next day, you have undersupply on that same model because something happened at the area. And I think in this regard, we have to complement our Admin and Operational teams as well, but similarly, the Finance teams. They give us flash numbers on the third business day. Now if you get the information that quickly, you can quickly see if a trend is changing as well, and I think that's been the trick. The 600 Hyperium packs pulling in and giving you these numbers so quickly. So well done to that team, and giving us the information quickly as well. Obviously, if you go through the segments, you'll see every segment has actually performed well as Osman just showed the previous slide. So where we can see, the importers benefit on particular areas of -- maybe on supply, they were slightly better than some of the competitors. You can see on the retail, it wasn't just one brand that we were reliant on, it was everyone and we had to maximize what we got. Also between used, new, we had to play the game with how that market changed. And then you had Mobility Solutions giving that annuity income stream, and we'll look at slides just now. But you can see they just continuously tick over, giving you basically at the moment on a run rate of over ZAR 500 million for every 6 months. And then Aftermarket Parts, which has really been the one that the jewel in the crown we haven't spoken above enough about. And you will see also how that is now already coming to the fore and being a really good fourth pillar. Below the line, yes, we are conservative. We're conservative accountants running this business, as you know, and we're not going to simply change overnight either. So if you have a very good operating profit, yes, you did look at a very conservative view around impairments of properties, around any businesses that you maybe bought in the last while, if there were any goodwill that needed to be written off. But inside the accounting rules, we did take a conservative view. So you may see those numbers slightly bigger than what they were before. Reality is, we have taken what we needed to take, so I think all the medicine has been taken there as well. Forex, you can never predict what this number is. It's one of those really weird ones where you have to wait for the 30th of June to happen to actually see whether you're going to have a profit or loss. As it matters, we ran on effective hedge accounting, there's certain elements that you can never hedge account, and that's really what comes through on this line. And in this particular year, it was ZAR 135 million profit. The prior year, we had ZAR 380 million loss. Don't ask me why, it's all around the volatility of the currency that I cannot unfortunately determine outright, and that's why we're using effective hedge accounting for our imports. Finance costs are very well controlled. As Osman said, we were obviously running on a lean and mean balance sheet. The vehicles for hire hasn't come back yet to that stage. It's slowly getting back there now. Also, inventory were a bit low. The inventory levels have started picking up towards the end of the year, and you can see that number very well controlled. Income tax, exactly in the ranges that we've given to the market as a guidance before, between 25% and 27%. Obviously, going forward, the South African tax rate is reducing now with 1%, so you might see a slight reduction even there in the future. But as you can see, at 25.6%, we are utilizing where we've got the sales losses, we're utilizing those through normal trading. But by and large, it's just a normal operating trading performance giving you that tax number. Earnings, Osman already spoke to those earnings and the headline earnings. But I think in that number with the weighted average number of shares is really where you see that additional kicker. And that's what Osman spoke about in the last 2 years. When these share took these dips, we were quite agile to take advantage of those when we believe there were value in it. I mean, our share was at one stage trading below its net asset value for a long period of time. And we think you -- I have to ask you some of the question, why on earth would you not buy back your shares? Because you can literally go and kick the tires. You see the vehicles, you can touch the buildings. They're not only sitting at cost, not even at market values. It would have been crazy not buying back shares. So we were fairly aggressive, buying back shares. But at the same time, you can now see the benefit coming through. Obviously, it works on a weighted average number of shares, so even the shares we bought back in this year is not quite there for the full period. [ We kind of lost our ] screen for a while, but it's back. I don't think it was me. Maybe it was. Any event. So you can see how that kicker is still going to continue even in the next year because our average number of shares in the next year is 165 million, so something to take note of. Total dividends, as Osman already said, ZAR 7.10 for the year. Very nice slide to look at. We immediately see how that benefit that we got in year one after COVID. Everyone said, now you got back to the level before COVID. Can you continue on this? Is this sustainable? And now you've moved it up a notch. You moved up 31% on an operating profit. And I know the first question is going to be, how can you sustain it on that level? And you will see in our prospect section, we do believe that we are on that new level. We still haven't squeezed every single dime out of this business. So the reality is we are on a good platform, and this is a platform to grow from. I think if COVID didn't happen, we probably would have been here a year ago already, and that did set us back. If you see where we came from the base in 2018 when we unbundled, we always believe that this is the ZAR 5 billion within our grasp, but now we finally got there. Also on the PBT and the attributable profit, you can see the additional benefit we got there as well on sort of on the tax lines and then the like. But 57%, I mean, this is a really, really good performance. If I touch a little bit on the businesses, and we obviously don't have enough time to go into detail all of these. I'm super excited about every part of our business. So forgive us if [indiscernible] myself and Osman, we sometimes carry on a bit. We obviously really like the business, I suppose, that's why we talk a lot about it. But on the importer side, as Osman already said, all 4 of the importers actually played their part. So in all cases, they were able to maximize. They were able to make plans. Obviously benefited from a very agile team, which looks at Forex the whole time. This is a big driver in our business, particularly we need to look at that. And we're able to increase the margins where they could. You're not -- we always say we're not a price maker, we're a price taker. You're in a very competitive market, so it's not easy just to push up prices and get higher margins. It's all around how you buy as well. And it's a well-oiled machine at the moment, which is really, really giving us good profits. You can see how this business also is changing dynamics, again, back to getting a little bit more, almost call it normal. As that contribution on your sales to the Car Rental is, you're getting back to 13%. I think we always believe that normal is probably closer to maybe 20%. So you can see how we -- gradually has moved from 9% to 13%, and we'll probably take another year as Car Rental is getting back to their height in heydays. Obviously, the market share is already spoken about. And then just giving you a note on what cover do we still have in play. So I think it's quite interesting to see cover all the way out to February, these are the rates. So are we addressed there? The answer is I'm quite fine for quite a bit of time. So that's -- how do we manage to get U.S dollars at ZAR 15.45? You must remember that the currency moves up and down on a daily basis. Our finance teams don't sit and wait and to make a decision once a month. This is a daily activity that people look at the currency. On a week basis, we'll have calls. On a monthly basis, we've got a formal meeting. There's a lot of structure and practice behind it, but also a lot of agility, making sure that if you have the ability to buy forward, you actually take it. At one stage, we were 9 months covered forward at very good rates. Currency moved out. We were able to slow it down, didn't buy again. When it took a dip, you buy again. So this is not a decision you take once a month and you will hope and pray, you actually worked at this time. So a very good job done by our Treasury team and also the Financial Directors in those businesses. Retail and Rental, I mean, on the Retail side, we certainly have seen a big improvement. You almost feel as if we're getting closer to that supply starting to normalize. So if that can normalize, this whole game changes again. You're going to probably sell a lot more new cars. Maybe on the used cars, it's going to tone down. You need to be careful what you buy in there. So a lot of decisions having to be taken on a continuous basis there as well. You can see that our profit increased by 25%, so a really, really good performance. And if you look at that performance in the second half of H2, 3.5% operating profit margin, this was a really, really good performance. South African market, I think you all know and understand that one quite well. As you can see, that is where a lot of the benefits came from as we saw a lot of normalizations starting to take place in this last half. Car Rental, getting back to into the game almost. We now eventually see the tourists starting to arrive again at our shores. We certainly think that December coming up may be a good time for them as well. At the moment, they are benefiting on good utilization rates, and it's our job to keep it there. I think that utilization rates of 73%. Remember, you can't keep all your cars in the right place at the right time, so you're going to have in Joburg while everyone is in Cape Town, so get this to 100% is virtually impossible. So at 73%, I think 75%, you get into quite a sweet spot. And it's also remembering how you measure that. So really, really good performance from Car Rental is now contributing to our good operating profit growth as well. U.K. and Australia, these markets is also different. I mean, as you can see, the European car manufacturers, they were the ones really struggling the most with supply. You would have seen the U.K. also struggling to get vehicles on a continuous basis. Obviously also a big play in the commercial truck business, so demand was high. Everyone is working digitally and online, but all those products need to get delivered to their houses. So it's all around commercial trucks for them. So in our space, the demand is there. It was a little bit on the supply that we were struggling. But you can see the operating profit also increased there by 19%. Australia, probably the hardest hit through severe lockdowns, I don't think anyone else in the world maybe apart from China where there's severe lockdown situations where literally got confined to their homes in the cities. So clearly, now they got out of the lockdown situation, things are improving. As we say, they are a wealthy economy, and we actually are looking forward to good things going forward there. But year-on-year, the operating profit was stable. Mobility Solutions. I don't know if Kerry planned it this way because we normally don't look exactly at H1, H2 until I do the slide, and then I see ZAR 502 million, ZAR 502 million. So I'm wondering if it shouldn't have been ZAR 503 million, but in any case. The reality is it is on a good wicket. I think it's a really good sale performance. We've now seen the return of profitability of the bank JVs. We have put a lot more into the pot, you'll see that when we get to the balance sheet. So that higher network sales volumes, obviously, it goes into the balance sheet first before it can get released again through revenue. So there is a bit of a delay almost on the higher volumes that you will see coming through in future years. And then, and obviously going to benefit a bit from the higher interest income. Aftermarket Parts, great business. You can also see how they've picked up steam in the second half. That's probably closer to where we believe the run rate should be going forward without any acquisitions activity. ZAR 343 million, ZAR 350 million for every 6 months. That's pretty much where they need to be. 8,2% operating profit margin, a really, very good business. During this year, we did have an acquisition that's in these numbers in the U.K. That was a good acquisition for us. I think our management team there has really gone out to try and see what more they can do and squeeze out of this. I think this vertical supply chain strategy that we started to follow probably 3, 4 years ago and now are really starting to pay dividends. So a good business, and looking forward to what else we can still do with that business. Quickly paging through, maybe just on the financial position. As Osman pointed out, you sit with a property portfolio there of more than ZAR 7 billion. These are real tangible assets. They're not sitting at market value, they're sitting at original cost. So we know every time when we move them around, we wanted to do the development in Mainland for instance, looking at what the property value would be if we needed to go and buy land as opposed to having your own -- and investments still there, and you can see the benefit there and why it would make sense to continuously grow on your existing footprint. Not too much else there. You can see the vehicles for hire increase in line with what I said around the Car Rental, so the activity has started to increase. Still not where we used to be. We used to be at about ZAR 4.8 billion, so you can see we're still quite a bit below that. And then the net working capital has actually starting to increase. So as much as we talk about supply chain shortages, et cetera, you can see there's some normalization taking place there. And if I go into the next slide, you can see our inventory is now sitting at basically ZAR 19 billion. We believe it will probably be at about ZAR 20 million, it will be at your right level again. So quite close to where we think this new normal will actually settle. What we have, however, discovered, probably new already, but I think now the business has demonstrated it's on a lower balance sheet level. You can still give us the higher returns, and it's probably our duties to try and keep them through that to give you that higher return on invested capital. Contract liabilities, that I sort of spoke about within Mobility Solutions. You can see that a 7% increase on that number is quite a lot. As you remember, that is where the money goes in and basically flows back into your revenue stream over the next 2 to 5 years. These liabilities is just the other side of our IFRS 16. And then the core interest-bearing debt. Now, this is the debt that we take from the banks and from our partners. You can see it did grow during this year, really around the vehicles for hire and the inventories that's starting to normalize. But still a lot in the tank, and we'll get to a slide just now around that. We are using some of the floor plans from our financial institutions. There's quite a lot that we can use there. It's all around making decisions around what's best for you. What does your own debt position look like? What's the recharge for all these facilities? And as you can see at the moment, we've got quite a bit to still utilize there. Cash, Osman is right. I normally look first at the cash flow statements when I get to the Board meetings before I look at the income on the balance sheet. But that's just me, so I have to say -- and he loves it when I say turnover is vanity, profit is sanity but cash is reality. That's what I grew up in, and that's what we need to see. So if the cash is not there, I don't really care about how much profit you make. Because you -- this is a business that turns very quickly. You need to put our back into this business on a continuous basis. This is how this whole business is structured, around cash generation. And as you can see, in this period, again, prior year, we did ZAR 5.9 billion. This time around, it was at ZAR 4.8 billion, and that is after you've already invested in your working capital, and that's obviously gone up. That's after we paid the interest we paid the taxes, that gives the ability to do stuff, okay? And that's why this is that makes it important because without this, you cannot do much. But if you get all of that done, you can actually do quite a bit because as you'll see on the next slide, what we've then been able to do is we can actually take that money. We can go and do investments. So in this current year, we have made some investments. We've been able to up our vehicles for higher. Obviously, the repurchase of shares was a particular lever that we pulled in this year. That's not the one that you'll pull every year. And you'll go through a bit of a matrix on how you want to allocate your capital. But the reality is once you get that cash, there's quite a bit for you to do. We have paid the dividends. We have obviously repurchased those shares. And this is a bit of a real accountants slide, if you want to call it that, because it reconciles your debt. We are in a net debt position. That's how we run the business, and it's reconciling your debt from the one year to the next. A really good slide, and good testimony on how much cash this business we're generating during this period. Now obviously, this is all very nice, but what are the banks are and where are we with that? I think the first bit that we need to understand here is that during this year, we've renegotiated all our bank facilities. So we've -- you will have seen even in recent newspaper articles and maybe on LinkedIn, et cetera, that we did a sustainability ESG-linked loan which was led by Standard Bank, but all the multi-bank facilities that -- or partners that we deal with, the likes of FirstRand, and obviously, Nedbank were very involved as well as [indiscernible] London. All participate in that ZAR 6.8 billion revolving credit that we've now got. So as you can see, we've got a lot of unutilized banking facilities sitting available to us. We are very cash generative. We are setting ourselves up to a new platform where you can see the profit generation is already there, and it's now really just taking that money, investing it wisely into maybe additional businesses, something that fits in with this group and actually make this business even greater than what it is. So I'll give it to Osman, that he can tell you a bit more about that.

So I said we'll talk a bit about acquisitions. This is what we've done this year. We -- remember, 2 years, we're going to go slow because we couldn't travel. We couldn't do anything. We got to the FAI acquisition, that's the Aftermarket Parts acquisition in the U.K. And again, we bought 100% of that. And the management is still there running it the way they ran it, but they just got a new owners. And Malcolm and his team visit them regularly and they manage it, but it helps our buying power as well. So they've done very nicely for us, very cash-generative business. We've done 4 dealerships. You can see the Hyundai guys were quite aggressive in trying to consolidate the position, with Midrand and Rustenburg. Then we took a Honda, and we've got Renault as well. These are bolt-on acquisitions, so you just tick on dealerships where they're in your area or you've got another competitor that's not doing well or failing to deliver what you want, you buy them and you do something. SWT, we just got the minority out there. getWorth, we just increased as well. And the Technology company, it looks small. We're not shouting about it, but we've got excited about the future of that business. It's in our space in terms of enhancing Mobility Solutions. What we do with data we get from customers, the ability to use the data and produce data differently. So it looks small, but we're quite excited about the future opportunities that the IT that business has is going to be very useful for us in the future, and we're going to -- it will avoid us, write your big checks in the future when they're very profitable. So we're hoping to ride the journey with them. And the way you look at it at the moment, it's about the most sophisticated IT you can get in terms of tracking and things like that. When you look at the information they make available, you realize they're a couple of steps ahead of us. The pending acquisition. Just across the road, we're busy with the Sandown acquisition, the Mercedes dealerships here just across Sandown city. We're looking at that to consolidate our position. We're just waiting for competition commission approval, and hopefully, we can get that done in the next 6 weeks or so. And on a cautionary at the moment, we're looking at an acquisition in the Aftermarket Parts sector. And we -- if all goes well, it could take another maybe 2 months because there's quite a few requirements and DD processes that we need to go through, but we're quite excited about that. And like I said earlier, the advantage with Aftermarket Parts is cash margins and not dependent on new cars. So it will complement what we've got on this side of the equation very well with that side of the equation, and that's why we're quite excited about it. And hopefully, we can do something in the next 2 months, if there's nothing regulatory holding it up. So unfortunately for the Directors, you know, please don't sell your shares. You've got to wait. The tools that make us arrive at these businesses, so -- because everything works with something and it needs a foundation, and this is the foundation that -- these are our targets even for the future. This is the strategy that we'd like to build on. So don't think I'm going to talk to you in 12 months' time with a complete different strategy. It's just building on what we've got. That means we are at the tenth floor, we want to get to the 12. And we get to the 12, we get to the 15. Then these are the pillars we're standing on. So obviously, market leadership is quite critical. We can't take that for granted. And you saw what we've done in the importer business, we grew that market share. Now again, market share is not about looking sexy and smart that we got to -- what does it do for our business? If I have 22.5% share or 25% market share, see how that's going to keep our workshop busy for the next 3 to 4 years, 5 years. Because you buy a car, you're going to service with me for at least 3 to 5 years. You're going to buy panel parts from me, so I'll feed the family for the next 3 to 5 years. So that's what it's all in the market share. It's not about the vanity of I sold more cars than somebody else, it's the annuity stream that I create for the future in parts, workshops and make some of the accidents, and I can sell more parts as well. So that's where that benefit comes from. And then remember, like I said, because an integrated model, so when the importer sells to the retailers, Mobility Solutions is in the business as well selling a service plan, a motor plan and everything that goes with it with all the value-added services. So the integrated model is here to stay. We've talked about the cash flow and things like that. The targeted ROIC, which is we used to get 2%, we can get it to 3%. We're better than that today. But remember, there are certain things we're going to still invest in. Car Rental, we're going to put more cars into that fleet a bit. Working capital may go up slightly, but then remember, we think we have an acquisition as well. So that's why we're a bit conservative in telling you that we can make our WACC plus 5%. But I think when you do an acquisition, it will slow you down a bit before you get back up to [ 80s ] and then obviously, we'll put some money into Car Rental and into working capital as well in cars. Acquisitions, we will continue doing that. Like I said, we'll do working capital. CapEx, our properties get old. They need to be refurbished. You take your old buildings, you make them new like Mainland. We had money there, but we spend more money, and that will make us more money. So you've got to just keep your tap open for capital expenditure within reason, and we do that. And in the last 2 years, what Ockert was talking about, the share buybacks. But now things have quite settled and we know what we want, we're seeing very few opportunities now in our acquisition pipeline. Some are still ridiculous. So even though every 20 we look at, we may look at 2 properly because we just look at the multiples and we walk away. But there are some opportunities coming our way, and we look at them quite critically. So if you don't see too many share buybacks in the next 6 months, not because we don't want to do them, we've just picked up other opportunities in an acquisition, and that's what we're going to focus on in the next year or so where there's some bigger opportunities coming our way. And you know what's it like, success breeding success. So once you do something small, someone brings you something bigger. When something bigger, they bring you something else. And all of a sudden, we're on the radar for a lot of people that are sending us deals as well. So we're going to be looking at that. Optimization of portfolio, I think we look at that all the time. You'll see on our balance sheet, we've got some assets held for sale, but that's purely properties. There's some properties now in the wrong area or we think we can make more money selling the properties, then we will do that. So -- but there's a few properties we need to get to of, and we will sell them at the right price. We're not rushing to give them away. Selling businesses, there's very little to sell. And then we will target businesses which are cash generative, margins are good and can give us sustainability into the future. And then we enter into strategic JVs. I mean, like the IT, we only bought 35%. Then say, but why? We bought skills with it. Those skills I couldn't have otherwise got, so that's why we look at strategic JVs like that. And Innovation, I've talked about what happens in Mobility Solutions, and they're driving that hard. On the IT side of our business, this group spends, what, about ZAR 750 million a year, IT. When I talk of license fees and maintaining the foundation what we have and investing. So this group spends about ZAR 750 million to ZAR 800 million a year on IT. So we make sure we continue investing in that not only from the customer-facing software and IT, it's the back office. Making us smart, quicker. That's why we can get the management accounts or fresh account 3 working days after year-end, things like that. And then using the data we're getting from customers to exploit their data as well. So there's a lot happening in the background, there's a lot happening on, for example, the customer-facing issues, the websites, the wanting to get your finance application, all electronic. That means we were taking out human intervention. We're working on all those things. The parts guys are working on some great initiatives of locating parts where there are. Things like -- and Car Rental is working on some great initiatives as well. So everyone is working on initiatives. And here, the ZAR 750 million may go to ZAR 850 million. Kerry, that's not a blank check for you to write, spend my money. But what I'm saying is that -- she is responsible for IT. What I'm saying is that IT is embedded in our culture. We spend on it, and we make sure that we spend more to make us smarter, and that's what it's all about. And obviously, the -- all this happens with people. It doesn't happen by mistake. And we invest in people all the time. There's measurement criterias and Michele and her HR team look after that to make sure that the KPCs are proactive. We're managing well, we're rewarding the right behavior, all that kind of thing. So we've got our finger on the pulse, and then obviously, transformation is critical. And now talks about the sustainability loan with the bankers. They put a new criterion, which is gender. So obviously, that's a big focus for us in the next 2 years to move our gender in our business. Historically, the motor business has always seen as a male business, but that's changed, and we're changing it. 34% of our staff are female, and the target is to get to 40% in the next 2 years, and we'll grow after that. So if we get to 50-50, we'd be very comfortable, but there's a plan. What's magical about 50%? When we started the Motus business at unbundling, we were 34% black. We had 50% black at top management, and the total group is at 73% black. So you can see my ExCo is 18%, it's at 50%, the bottom has gone to 73% black. Now, we're going to focus on getting our business right to the right gender. So we've set hard targets for the next 2 years, and then we're setting targets after that to get the gender-right because we believe that our consumers are also changing, and we need to change with that, and skills are available. It's not like 10 years ago where there was no lady technicians, all that, that's all changed. We're training people, and we want to make sure that we get to the right gender in our business as well. I think the strategy is very much similar. So we're not -- I'm not going to go through every bullet. Not that I can't read some of these bullets, but I can read each one of them. But the strategy is still there. What's the strategy? In South Africa, do bolt-on acquisitions where you can in the regions you're in. Like you've seen, where you see an opportunity, you will buy and be smarter. Same thing in the U.K. Wherever I can buy dealerships that are close to my area, we will buy, and in Australia as well. The area that we want to focus on for the next 2 years is the Aftermarket Parts business. That's an area that we believe is not dependent on new cars, not dependent on what OEM wants. It can -- it's very cash generative and it's not dependent on new car, and that's an area we're going to be focusing a lot of our energy on. So the little hair that Malcolm has is going to disappear by the time he retires, because his job is to get the acquisitions that I can do in that area and build up his team that he have, a South African team, and then we want to look to make sure that we're looking at offshore at the team as well. So that's a big growth focus for us. And you never do these things by mistake. When we mastered South Africa, and we understood how to do it well here, now, you can look elsewhere. We couldn't do that. I mean, Malcolm and his team had a lot of work to do in South Africa, which they did. Fix up the supply chain, fix up the suppliers, buy ARCO in Taiwan, get the IT system sorted out, so we put that now into a very solid base. Now, we can start looking and say, what else can we do in that space that gives us what we're looking for? Good returns, generally, cash generative and obviously, margins are quite strong as well. So that's why I'm not going to go through every bullet, but you can see what we're after. And what's interesting, I know you guys get worried. You read some -- you all intelligent people read a lot. Be careful about the EV. If you look at South Africa, we've got 12 billion ICE cars. EV is coming, but very slowly. Merck launched the EV over the weekend. What was the price, ZAR 1.6 million? Audi has got a beautiful EV vehicle, ZAR 1.6 million, ZAR 1.7 million. Where is the market? The South African market is below [ ZAR 750,000 ], so that's where the bread and butter is. So when the EV comes down and we get some subsidies whenever we get, I don't know when, we'll pick up that market. But right now, we're in the ICE, exploit ICE, there is enough to sell parts to, there's a lot of things to do. What's interesting, if you look at the United Kingdom, they've got 35 million cars. When are they going to get to ICE, 2050? So they can put the toll, they could put the emission charges. They can do all those things, but how are you going to convert 35 million cars? You're not going to do it quickly. That's why we believe Aftermarkets has got a lot of road to run, selling a lot more parts to that industry. Look at Australia. Small country, 25 million people sitting on the tip of Africa -- tip of the south for about -- falling off ocean, 25 million ICE vehicles. So what I'm saying to you guys, there's a lot of opportunity. When you read these fancy reports that tell you we'll all become EV tomorrow, it can't. There aren't enough batteries. There isn't enough charging stations. There isn't enough investment that has taken place. It will take time, okay? It could take another 15 years before we start normalizing. That's the IT I was talking about. So you can see what we're trying to do. It's not only back-end, it's front end, and making sure that whatever we do has got a flavor that -- of IT that makes our life easier. So again, we talk about omnichannel, and customers push you in that way as well with COVID. We were talking to customers while they went COVID, and we were delivering cars the minute we opened. But that didn't happen by mistake. It happened through communication, IT, making things available. And then obviously, making sure that the customer journey from the time you're looking for a car. Not when you buy the car, that's too late. We've lost you, because you've gone to a brand maybe I don't want you to go to. So I got to catch you before you start thinking and catch you right through the motor vehicle journey, and that's what we're trying to do. I think we're overrunning, Ockert. This is a slide I was telling you about. So you can see the top management where we were with 17%, we had 50%. Senior was 24%, we've gone 53%, and the Junior has gone to 71%. So we can all argue that people are going to lose their jobs. We don't need white people in our business. There's no such a thing of that. No people has lost their jobs, and we can achieve these numbers growing the business in the right spheres and making sure management goes with them. So there's no need to fear transformation, embrace it and work with it. And we embraced it, and all the people that were with me in 2017 are here in this room today. And you can see what we've done. It's achievable, it can be done, and we just have to focus on it. And the group represent -- I mean, you can see that I said 73%. It's actually 75%, last year it was 73%. Ockert talked about the sustainability loan. It's actually ZAR 6.8 billion, so you can see we've done well for that. And then we're obviously measuring the fuel and the water, and gender is another added measurement we're putting in. What's interesting that when we started this Ukhamba scheme, obviously, it was started by when we were with Imperial and then we inherited it. And, I mean, 2 people that are sitting in front of me, Fundi and JJ were with me in that journey when we started that and got it going, and Oshy wrote all the agreements. So Oshy, it's 20 years, I think, since we wrote those agreements, but they've paid out ZAR 407 million to employees of Imperial. Some are not employees at the moment, obviously. But there were black employees of the group at that point in time we could share in this, and that's what we paid out. So [indiscernible], please make sure that we continue paying out. You've paid a big chunk of Imperial money, but now you can still pay in the next, I think, 2025. Is that correct? We go to 2025. And the other thing is, you see the shares. We've converted about 824,000 shares a year to the scheme, so it will continue. So it's not stopping. There's still a ways to go on that. So we're quite pleased that we could enrich and reward our staff with the right kind of money. What can I tell you about sustainability? We're not people that look after our back pockets and management only. On the YES Programme, we take the graduates, we put 400 in our business. And you should only keep 2.5% of them and you take out 400. We're going to keep 50% of them and take another 400 of youth. That means, these are youth never worked before. We take them, put them into our businesses, and we make them employable. So some will come with degrees, but you can see management is not focused on only the -- selling the cars, but developing people and growing the -- what we have is critical. And that's why all our divisions have embraced this. And that's why we can -- we took 400 employees, so the 50% come permanent, we add another 400 on the other side. So the guys have done a great job. And the Apprentice training, we trained a lot more than we need, but we train for the industry as well. So we don't look after our dealerships, that we just trained because the governments have closed the technical schools. So these people don't have anywhere to go, and we train them. And we've got training schools to do that. On the education side, we've got the resource center, the library centers in the townships. We've got 63 of them. We've employed 75 people to manage that, so we don't go and look good with pictures and disappear. And our big partners in this, in all ours, is the Koreans, Hyundai. They've -- our partners, and they've -- out of the 63, I think 15 comes from them. They've helped us put these up, so it's a great partnership we have. And we're touching the lives of 74,000 children that otherwise wouldn't have read or had the books available to them. With this, they have them. The scholar patrol that Berenice is involved in, you can see she's -- and her team went to 2,300 schools, and they touch in the lives of 2 million children. So again, very correct initiative. And the Unjani Clinic, we started this when we were together with Imperial. We've continued that with the funding, and you can see these are mobile clinics in townships. So the people that have a flu or are a runny stomach and things that they don't have to look for a taxi, get to the nearest clinic and wait hours, [indiscernible]. They go to a clinic in the area and they get attended to by qualified nurses, and you can see what's happened. We've got now 124 clinics with 420 staff, so that's our contribution to society. How did we use our cash? Obviously, working capital, I said, the Car Rental fleet CapEx we're going to do strategic acquisitions which I talked about, so that -- and if you look at Ockert's slide on where we spent the money, we bought ZAR 1.2 billion worth of shares, so we've got room for acquisitions if we get the right ones. So we can just put that money aside and do an acquisition, so we will have -- we've got that capacity, and all the acquisitions we look at are with, obviously, the return on invested capital. We make sure we look at cash generation and sustainability. That's the ingredient. And we will continue to share repurchases, but I think we'll just watch the space. I mean, Ockert and his team got that down. And he's talked about the debt reduction and how we brought the -- bring the debt down as well. So how do we see the outlook? And it's -- when I spoke to you guys 12 months ago, we were all worried. We were coming out of COVID. We didn't know where we're going to be. Wasn't sure of the budget, and for us, budget's a 3-month thing. We do budgets, we lost a lot end of September, October, and then we do forecast. So the consumer is under pressure, but we still think there's a lot of activity there. The vehicle supplies are starting to normalize because if we look at Toyota during the flood, they'd introduce any cars in July, August and half of September. They will come in October, so those cars will come back on, the Hilux and the Sesfikile and the Toyota hybrid and the Cross, they'll come back. Other stocks will normalize by January. But by mid next year, we think we'll have a lot more stock, so we're very bullish about that. The other thing is that remember, the area that's going to help us is Car Rental. They've been short buying in the last 3 years. We think they'll give -- or the industry a kick of about 20,000 extra cars next year. So they'll buy some cars, and that's where you'll see some kicker as well. Currency fluctuations, like Ockert said, none of the contents can take 3 weeks leave. Ockert can't take 3 weeks leave because his job doesn't allow them to take, so they can only take 1 week at a time because they're going to watch these things. You've got to watch the currency. I can call [ Ockert ] when he's at [ Platinum Bay ] as well and tell him, buy or sell or what should I do, because that's his job. So no one can take 3 weeks leave, unfortunately. This is a dynamic business that's managed currency daily. And the importers, don't phone them on the Monday morning. 8:00, 11:00, they're all in ExCos checking the volumes, what should they buy? What shouldn't they buy? They do that all the time. I irritate them sometimes by phoning them just to see that work, but I know they are sitting in ExCo meetings. The regulatory, I can't tell you what a nightmare this is for Kerry and her team and Brandon, who's not here today who keeps me out of jail, it's a nightmare. It's just keeping up with legislation. Unfortunately, it just adds cost to our business. That's a mixture. When you got a first world country with a lot of third world, you go through these pains. We're going through them, we're not complaining, we comply, but it's adding to the cost of business. We've got specialists doing this all the time, but that's life. Obviously, we know about inflation and rising logistics costs are just ongoing as well. So the strength, the team. The business model, I've talked enough about the diversification and the size. We've got 345 dealerships with over 500 Motus stores and engine -- alert engine parts, Mobility Solutions. They all give me size. They give us scale. So what we're hoping to deliver we still want to deliver positive results. We don't go backwards. Strong balance sheet, and we think we can still do the things we do from a cash point of view and generate some good cash for you guys and for us all so we can continue growing what we want to do. Thank you for listening to me. I've overstayed my stay. I've gone about 10 minutes of time. Justine, you can mark me down for that. Before I take any questions, Justine, are there any questions on the webinar?

I'll [indiscernible] that have come through. The first question is around inventory supply. When inventory supply normalizes, do you anticipate that demand will hold?

It's a million-dollar question. We think it will hold when stock comes in. But remember, it's not going to normalize tomorrow. We're talking of mid-next year because semiconductor issue hasn't disappeared, I can't wish away Russia and Ukraine, we can't do all those things. So supplies will only normalize and maybe the importers can help, we think only about June next year. We don't think it's going to normalize before that. But in the meantime, there is sufficient demand happening that we think that we can continue on the road that we're in. And remember, there has been more demand and supply as well at the moment. So for the next 12 months, we don't foresee a problem. After that, demand and supply will normalize because then we'll be back to normal, and the margins may suffer a bit. But what you lose in the margins, you'll pick up an increase in turnover, so it swings and roundabouts. So it will take us to June next year to get supplies back to normal. But Car Rentals going to help us at work with 20,000 cars. Next.

The next question. How should we think about the sustainability of the segmental margins, in particular, the Import and Distribution business?

Margins will be under strain because we benefited from the shortages, that means we didn't give our cars away. If you didn't buy from us, my dealer next door wasn't going to give you a better price because there wasn't anything available. So margins have been slightly inflated. They will come down. But when margins come down, volume should pick up. So in rand terms, you'll be okay. So in margin terms, you should go down, but the rand terms should pan out. And that's why we're saying that deliver positive earnings, we still think we can do that. And there's sufficient road to run. Even my importers haven't run the road, they needed to. Despite Gary during the comrades, that's at a personal level. At the car level, they haven't ran the road. I think they've got capacity. They've got fuel in the engines that can still help with getting us where we need to get to.

We can then go to the floor for any questions.

We hear from some of the smaller used car companies that the next 3 months, we're going to approach a period where the price of new cars converges on old cars. And so I know next year, you're expecting probably a sale of more new cars and maybe lesser second-hand cars. Is it enough, the sale of new cars to offset the decline in used cars?

To answer your question first, the bubble on used car values have started bursting already. Started in July, we saw it. We're seeing it in August. So where -- some guys were paying over retail. But remember, you get booked, you get retail and some people were paying over book -- over retail. That's gone. We're back to trade, and trade minus as well. So we believe the reality will come in with the used car. So we'll get this at the right price now, and we'll sell. There is a market for that. New cars will help because now, they're getting more stock, so they'll continue that. So the advantage we have with scale is what you lose on the swings, you pick up on the roundabout. So you may lose a bit in pre-owned, but you'll pick it up in the new one. When I lose it in these 2, I picked up in the parts, I picked up in the workshops, and then Kerry and the team will pick up in Mobility Solutions. So what we lose on swings, we pick up on the roundabout because we have that formulae. If I was a used car guy, I'd be a bit worried because then my margins come down. But because I have news, used workshops parts, everything, they all level each other out and they allow us to grow and mix. And we're after sustainable income, and that's what we believe we can do. There's a question at the back.