Motus Holdings Limited (MTH) Earnings Call Transcript & Summary

Today, what this is about is it's really demonstrating where the future is going. This is a journey that Motus has been on for a long time. And I mentioned earlier about this incredible digitization that's taking place around this. Every one of us in every one of your organizations, whether you're in health tech, whether you're in finance, whatever industry you're in, technology is touching that industry. And we've seen this accelerated over the last few years and particularly with COVID, but it's all about this hyperautomation. What are we doing with all the data that we're collecting? How are we using that data to really grow and unlock value within an organization? So it's big data, it's analytics, it's AI, which is a common theme. All of these things, together with the cloud that's holding the glue of this, really, at the end of the day, it's doing business better. It's unlocking value within the organization. But ultimately, it's to enhance that customer experience so that customer keeps coming back. And this is a journey that I mentioned earlier that Motus has been on for a long time, and we are going to unpack some of the innovations that you are going to be seeing in the future and some that are in place right now that are literally going to blow your mind today. Because at the end of the day, this organization is touching so many lives. And when you look at innovation and you look at this digital transformation that's taking place, it doesn't just happen like this. You don't just press a button and this innovation takes place. It starts with the people within the organization. And this organization which encompasses 20,000 people. That's how big Motus is. They've got an incredible network of 24 OEMs, 33 different brands, 345 dealerships diversified across Sub-Sahara in Africa, in Australia, in the U.K. Have I left any other countries out? That's more or less it. I mean this is a company that's growing places globally, and the technology and the innovation needed to drive this and unlock the value is where it's happening. And this is a very, very exciting time. So we're going to be talking about what's happening in the import and distribution division. The Retail and Rental, Mobility Solutions, Aftermarket Parts. How do those things all come together with innovation to unlock and enhance the organization and unlock that value and give that customer, that ultimate experience. So it's a warm welcome to you because all of these things touch every single part of every single organization. So a warm welcome to all of you. Thank you very much for joining us on behalf of Motus today. We really do appreciate you time. But I want to first introduce a man, we've got incredible respect for. A man who knows this business backwards, right? There's no other person that knows this group better than this man. And he is, of course, the Chief Executive Officer, Osman Arbee, who has held many positions even going back to the Imperial Group. I've lost count. It's before 2004, right, Osman? So you know this business backward. He knows how this business works. He's been guiding this business. Ladies and gentlemen, please give a warm welcome to Osman Arbee, the Chief Executive Officer of Motus.

Aki makes me sound like a god, but there's a god one ahead of me, and that's Manny de Canha sitting over there. For a lot of you would know him, I learned a lot from that man. We sat on the Imperial Board together. And for Manny, there's a deal to be done in anything. The minute he sees something, there's a bloody deal, and that's the man I learned from. I was the first guy to buy 5,000 vehicles from Manny for the car rental business. When I was CEO of Car Rental, he was running the AMH, the Motor Group, and he had Hyundai, Kia, Renault, Tata at that time and Chery and he had everything that moved in South Africa, he added and he said, "Osman, we'll cut a deal, right?" [indiscernible] Manny. You look after your profits and I go to look after mine. So I reckon, "Manny what's in for me." He reckon "don't worry, we'll do a rebate for you at the center." Manny, it worked well. And for 10 years, I enjoyed the rebate. Ockert kicked it out after that. But you and I enjoyed the deal. Aki, thanks for that warm welcome. We all know Aki is not here because he's a good emcee. We all knew from 702 where he did IT and innovation. He has been [indiscernible] to the states, I know because he used to give us feed, actually listen to his feedback when he was on 702, about IT and things like that. So he's got a passion for innovation and IT as well, so pretty appropriate to get a guy like Aki as well. So Aki -- I don't know how that, but Greek [indiscernible] and good looks, I don't know if you guys go together. But firstly, thank you to each one of you for making it. It's a bit daunting because even our results presentation, we don't get so many people. We get about 30% of what you guys are here. So well done, and thank you for making the time. I know these people from Cape Town and other parts of the country as well. So thank you for joining us. And not only we've got analysts and we've got banks and we've got people that do our integrated report, and we've got our public relations people here. So we've got all sorts of people, we've got EXCO members. And then even my nonexecutive directors thought they better come and listen to me. So we've got them some in the audience. I just spent a lot of time in the strategy session in the Board, but they still want to listen to me. So nice to have you guys here because I see Fundi and Lesego and [indiscernible] and Saleh, I think haven't missed anyone that are here, so nice to have you guys here as well. And more importantly, the accountants are here as well for Motus. So Ockert [indiscernible] here as well. So what are we trying to do today? So I'll talk and then Ockert will talk and Kerry will talk and then obviously, we'll do a walk about. So Motus sounds very old, and I sound old, and I look old, but Motus is only in November 2024, they'll only be 6 years old since unbundling. So we had a long journey with the Imperial Group. And then obviously, we created our own journey when we unbundled on the stock exchange in November 2018. And I told you what Ockert and Kerry are here, yes, they're not yet here to -- for the good looks, they'll come in, do the job here and do a presentation as well. And then more importantly, we're not going to talk results today. So the results will come at the end of August, and we'll talk about that. But today, we want to talk about innovation. Now you could say that it's a buzzword, everyone uses it. It's overused in fact, AI is overused. But that's why after this presentation, you're going to do a walk about to say, what's real? Do they actually believe in it? Do they do it? And what are they doing? So that's the purpose of today, to say, we believe in it, but we're making it happen. There's an action plan. And someone asked me the question, is there a debit on your balance sheet with all these costs? Now there's no debit in our balance sheet. We conserved our contents, whatever we spend is expense, so it's gone. So relax for those analysts that are worried, is there hell of a debit in our balance sheet in the intangibles. No, there is no such thing. So it's all written-off as we go because that's how Ockert likes to run his books, and he's a very conservative guy. So what I thought is that I'll talk a bit about the past and then Ockert's a younger guy, he can talk about the future, and Kerry can talk about what Mobility Solutions do and innovation does, because I'm in the [ departing ], I'm at the train station already. So I'm at how -- train already. So I thought I'd just let you know about history. So if we look at the slide and guys, please understand this didn't happen by mistake. It's something that the EXCO and Ockert and I specifically sat down at the time of unbundling when we were preparing our story and saying, where do we see Motus? How do we sell it? How do we list it? And where would we like to see this business in 5 years' time? And that's how I've broken the slide up. So what I've done, I'm saying that the 2018, 2021, that was the establishment phase. That's where we [ work, ] we got unbundled, and said let's create this business and maintain what we've got. So you can see the base was created at about ZAR 3.5 billion operating income, and we went to ZAR 3.8 billion in '21. In between, you had COVID. We all know what COVID and see what's happened there. So that phase that when we unbundled from Imperial, that's what Ockert were focusing on, firstly, creating a one Motus, pulling the team together. They came from different places, the import, retail, car rental, all sort of mobility solutions. They came and aftermarket parts. They came from different areas. The job we had to do at the center is pull them together and to create a stable environment. So that's -- and you all follow numbers. That's why I'm talking about the numbers. So you can see the establishment phase. Then we went into the second leg of our journey, and that's when we created a jump in our earnings. That's when we went from the ZAR 3.8 billion to the ZAR 5.7 billion, and watch the space in August when you see our '24 numbers. And for those of you that are reading the SENS, you can work up what that number is because you can take that number and multiply it and you'll come to a number. So we're not far off. So then we went into the second phase, which was the growth phase. And the growth phase -- and while we were on the growth phase, you can see we skipped 1 billion [ range ], guys. In case you forgot, there's 9 zeroes behind that 1. Guys, we skipped that phase. And that's what we did here. We jumped from a ZAR 3.8 billion business to a ZAR 5 billion and a ZAR 5.7 billion, and that we will be adding to. So did that happen by mistake? No, guys, it didn't. We thought about this when we went for the unbundling. What can we create and stabilize, and then obviously COVID hit us with the 6, but we came out of that as well. And then we created the second phase -- was creating this footprint of the ZAR 5 billion, ZAR 5.7 billion, ZAR 5.6 billion, whatever the number is, that's the next stage where we brought it to. So pray for me, not so great for Ockert because I'm leaving him on the 20th floor. If he falls, he's going to fall 20 floors. So he can only go upwards now. So he's got to climb from the 20th floor upwards now. So that was the reason I want to show you the slide in saying, we sound old. I'm old, but this is a newly-listed company that's only been here, in November, it will be 6 years. And this year, what can be achieved? If you get a team together, you get like-minded people, you get [indiscernible] together and say, let's make it happen, and this is what can happen. So I'm sure you'll all look back and saying, has this team achieved? I don't have to tell you, Aki doesn't have to tell you. But you can see for yourself in the numbers. This is the 2 phases we had, the establishment phase and the growth phase. So we get a bit annoyed when people say, but you're ex-growth, we're not ex-growth guys. Here, we show it to you. We skipped the whole 9 zeroes here, 1 in 9 zeroes, we missed. Okay. So then you can ask yourself how this all happen because, yes, you have people, you have that kind of thing. And what we'll be thinking at that time when we were unbundling and on this journey? We were thinking about, obviously, the international business, and not leading our purpose only with car sales. So we wanted to get a fair split between the profits that come from a car and that don't come from a car. What doesn't come from a car would be the Aftermarket Parts, your Car Rental business, Mobility Solutions, that's the split we had, 38 in '21. We had 51-49. So you can see that was in our numbers, in our heads, we had this 50-50 number. I'm talking about that first and I'm not coming to internationalization now. We worked out early in the day that we've got unfair competition. What's unfair competition? I've got OEMs in the country that manufacture cars and export, so they have export income, and then they import. So they had a balance. I didn't have that balance. I was importing a lot more and then nothing to export or no foreign income coming my way. So that was a big concern. So we had to look at this and say, "Hold on, we don't have a natural hedge, and we'll never get it. But when can we go and find this middle road of a hedge without bumping for hedge at a bank?" So that's why we started on this journey of getting our foreign income from 22%, and now hopefully, it's 34% and will be a bit better by the time we present our results. So that was the purpose of this journey. It wasn't there to say, just take the South African money and we'll pump there and look hell of a smart when the currency goes down. That's not the reason. We had unfair competition in this business was our importers were exporting and I have nothing to export. And so the only way we could balance our books is get some money from offshore that we can balance this equation was all you know we've exclusive importers for 4 brands, and those eat up our ForEx and they're heavy on our balance sheet. So I needed some income that came in. So when this one goes weak, that one helps me. And we have -- you'll never get a natural balance when you're importing things, but we try to get a fair balance, and that's the objective here we try to achieve and [indiscernible] would be at 34, 35 and 65 on the other side. So hopefully in the next 2 years, we can make that maybe 40%. And then you got a fair balance between local and offshore. So that was the logic behind it. I don't want you to actually think that we were the famous brands of the world or the woolly's of the world and just run like idiots and just bought things. We had this objective of worrying about this hedge. And that's what we try to is balance our import versus our exports, and that's what we were after. But again, we were well thought at becoming good CAs. We did this in bite-sized chunks. The first deal we did in the aftermarket was the FAI business. You know we paid about ZAR 600 million for that, learned the business, learned all the tricks of the trade. Then only we went for the big fish was the NPD business. So we did this in bite-sized understandable chunks, earning the respect of the people there, making sure they respect us, they understand what, and that's how we went on this journey. It was slowly, but in a very structured format. Then obviously, this can't happen without people. There's 3,000 people like Aki says, obviously, we worry about our people and we make sure that there's a lot of [ succession ] of our business. Aki did know but when he was working from me, I was planning him -- for him to take over from me. So now he knows it, but he didn't know it then. So -- and I think the key thing is with all our EXCO members, we just [indiscernible] is this entrepreneurial thinking have. That's what we've got in Motus. It's not about selling the car today, making a quick buck and we're looking smart and you maybe think you got short change. Our job at Motus is to build brands, make money at the same time, make sure we're looking out to the OEM, and we developed solid relationships so that we would stand the test of time. We work them in the bad times, we work them in the good times. We went to global financial crisis, went through COVID with them. We're going through a difficult period, hopefully, after last week's news, we're sounding a bit better as a country. And hopefully, long this last, and we continue growing these brands. So we've got a great bunch of people, not all [ 3,000 ] in the management, but those that are in the management do a great job in maintaining what we've got and growing what we've got. The other key thing is you all know that when you -- the higher you go up the ladder, the high it is because you recruit people not for the jobs that they're in. You recruit people for potential. And that's the hardest thing anyone can do. In the Motus terminology. If I need a 4 cylinder, I never recruit a 4 cylinder. I recruit 6 and 8 cylinders. Why? That's potential. And that's what we do. We employ people to make sure that they can operate at the next level. And that's why we're looking for these entrepreneurial skills and make sure that we can grow this business. It's the people that make this business go. And unfortunately -- we fortunately in a way that our colleagues in the U.K., Australia and in China, we've got a small business Aki, they're thinking like us. And I just told them on the EXCO meeting today that we all 3 of those areas, in fact, 4 are under South Africans, Rob Truscott is running our U.K. business, our commercials, South African. Studied here became a lawyer here, I know is running our business. We've got Niall Lynch. You all know from the [indiscernible]. It looks after our Aftermarket Parts business. Jaco Oosthuizen, [indiscernible], he's running the Australian business. And [indiscernible], they don't come off of Africans [indiscernible] they're just from the free state running my Chinese business. So you can see these South Africans well groomed, running a business for us in foreign territories and doing a great job. Okay. So we talked a bit about this and you've read about this, but I'll just pull out the highlights from here. Now you can see that the U.K. and Asia, the EBITDA was ZAR 70 million in 2019. And now we're looking at the ZAR 1 billion. 1 plus 9 zeroes. In case you guys forget things. Just remember that 1 plus 9 zeroes, that's the number there. And that's what we've developed, that started small, and this was the journey, and that's what we've developed here. And these are not pictures that were photoshopped, they're for real. These are our vehicles there, you can see them, and that's who we are. The nice thing about this type of business is that it's cash generative. So we're paying our debt as fast as we can, and the return on invested capital, except for one accounting entry that makes a bit of a mess. I hate the content for that, including myself, is that PPA write-off. You exclude that, the returns are fantastic. But you guys see it in the depreciation line, and that's why talk about EBITDA. But more importantly, this business is not about just what they're generating. It's the opportunities they're creating for the group. What do I mean by that? We've got the Chinese business. We've got the Taiwanese business. So we're using that business to supply more goods into the U.K. The U.K. then, it's got a warehouse in Poland. We use a lot of the goods that come through. So the Polish and the English wouldn't know that we're making some margin in China. They don't have to know that. So we'll make some margin there, and then we're going to make margin in the U.K., and we're going to have in Poland. So what this platform has given us, it's just not the EBITDA, but the opportunity to create more EBITDA in other countries like Poland, like China because we help our buying power. And that's what this business does, is you've got the platform, but now you don't have to do another big deal. You just grow from the platform by using procurement synergies, buying power, all that kind of thing. And that's how you can see the growth potential. And all this is going to help me importing cars with my ForEx. So I can get a bit of balance in my ForEx as well. And if we look at the synergies and that -- they don't stop there. There's some opportunities we're looking in other jurisdictions. It will take a bit of time, but there's some very positive initiatives taking place in other parts of the country where we could do more sourcing from China for them. We've got a big warehouse just taking keys in 2 weeks' time in Milton Keynes, and that warehouse will be a great platform to supply into the rest of Europe and Scotland and Ireland. We're looking to supply to them as well. So we're very excited about this opportunity. And in fact, I must thank Malcolm. He's here somewhere. There's Malcolm there. He initiated the discussions and the processes. And unfortunately, both him and I in out-train station, so we leave this year. So we are on our way out, but we leave a good legacy behind. Malcolm, they didn't stop the acquisitions at aftermarket. They did something else as well. So you can see there, you can see the U.K. Retail business, we doubled the U.K. Retail Vehicle business from 2018, and that's helping us creating a very nice commercial business, which is about 80% of our business and 30% is passenger. For those that haven't traveled to England, you know, I'll tell now for free, that the English are very good at moving people on trains, not goods on trains. All the goods are moved on trucks. So the trucks from there would go from London right up to Glasgow in that and then crossing to Paris and Holland, and that's why the commercial business is a big part of our business that's very profitable and it's sustainable, because in terms of the local rules, every 6 months, they're going to bring their trucks in -- 6 weeks, they've got to bring them for a checkup. Every 12 months, bumper-to-bumper checkup. Guys, we got great people there. They're [indiscernible] to upsell. So you bring your car in and then we check your brakes. But we don't tell you about the breaks only, we'll tell you what the mudflaps. We'll tell you what the bumper that we need to put in. We need to tell you about the windshield we need to put in. We upsell. And that's why the commercials business is such a good business. It's not dependent on the man in the street. You're dealing with corporates, happy to pay. When they go to EV, we'll go to them on their journey. You said that that's going to be slower, but trucks are slower in the EV area than cars because these trucks carry 30 tonnes, 35 tonnes, 50 tonnes, batteries are going to take longer to get there. So we're quite excited about that part of the business and thank God, it's 80% of our business, and there's 1 or 2 opportunities we're looking at. And if that comes out in the next 2 years, I think it could be better and great. But that's a good to great journey, we're on. On the passenger side, we started in Australia. We saw with 27, Manny, thanks to do. We started there, because Manny and I first went there, Manny took me, introduced me. I couldn't understand some of the English, but he helped me through that. And eventually, we got that to 46 dealerships. So we've grown that quite nicely and [indiscernible] Australia this year, despite all the difficulty to sell 1.3 million cars from last year's 1.1 million, 1.2 million and previously 1.1 million. 1.1 million, 1.2 million. 1.3 million this year. Those guys are pumping at the moment. So long may it last. Okay. So we break about where we are, what we're doing and what do we do with your money. So let's put some context to your money. And obviously, we keep money for the working capital and the vehicles for hire. Obviously, we need that money. Capital expenditure, which we've cut down significantly in the last 2 years. We're not buying a lot of property anymore, we just upgrade what we've got. So we keep some money for that. And we do quite a bit of dividends. We do a consistent dividend payment, let me put to you that way. And then obviously, we've done a number of share buybacks as well. And we've done -- the group has repurchased 36,8 million shares. It's not a bad number for a business that started with about ZAR 202 million at the time unbundling. We're sitting at about [ 177 ]. Yes, not a bad number for 2 lightweight accountants that could achieve this. And then we continue with our dividend payment. And we've discussed with the Board, it's not a policy. It's a guideline that we -- that the Board quite approved off and they're likely to over the year that we pay about 35% of our attributable income or headline earnings as a dividend. And I'm not going to talk much about the investment in innovation. I think Kerry is going to do a better job of that than I do. She's younger and she's more innovative and she's more creative. I'm a bean counter, so I'll leave that to her. She's more creative. She's more creative, she's a bean counter that converted, so she is a qualified CTO as well in case we thought we just employed here for agenda. And then obviously, strategic acquisitions. We're continuing with that, and there's some nice opportunities. We're looking at that as well. Like I said, there's some very attractive we're looking at the moment, which will happen in the next 2 years. So Ockert booked it's seat in the British Airways in the business classs lounge already, he has done that for the next 2 years, so you can continue focusing on that. So he's done that because he leaves late at night. He sleeps and 9 o'clock in the morning, he chairs the Board meeting there. So that's what we will be focusing on. Okay. We didn't waste your money. This is money -- this is how we spend the money. That's my one big shareholder. So this has happened since unbundling. We generated cash of about ZAR 22 billion, ZAR 22.5 billion. You can see the accountants have written this because they didn't give you an exact number because we haven't reported our results. So they're quite smart. They keep me out of jail. And obviously, we've borrowed ZAR 2.5 billion, ZAR 3 billion. What did we do with the money? ZAR 8 billion of this money is going to shareholders in the form of share buybacks and dividends. I spoke to that earlier, and that's the kind of money that's gone to shareholders in that way. The investments, obviously, the big one there. The one I can pull out is NPD and FAI. So that's about ZAR 4.4 billion new deck out of that. So the others were relatively small compared to. But you can see where we put the money. And the vehicles for hire. That's an ongoing business because remember, you got to keep on feeding this animal called car rental. You put cars in, you rent them for 9 months, come back, you sell them, but you got to feed the animal. So over the years, you can see what we've done there. Right now, I don't mean animals in a bad way is that the vehicles. And then obviously, we did a bit of capital expenditure. So you can see there's -- we've slowed that down the last 2, 3 years since COVID, but still, we've got to spend some money. So we believe that we've looked after our shareholders. We've looked after the future sustainability and growth of this business by giving it a great platform to grow on. And then obviously, we put -- we've kept some money for maintenance as well, which is your CapEx side of the business. So we believe that this was a fair way of splitting our cash that we collected. What does this tell you? Imagine, had we bundled 5 years before this. This is the kind of cash this business was used to generating. That's why when Manny and I were sitting on the Imperial Board, we just get annoyed at times. We felt our money was growing another business. It annoyed us but what could we do, a part of our family. We live with it. We will buy barges in Germany. Take us 10 years to pay back. Today, what can we do? This is what we can achieve. Can you imagine fast forward this for the next 5 years. This was still off the low base. I remember where my income -- operating income was at ZAR 3.5 billion, ZAR 5.5 billion [indiscernible] debt for the next 5 years. This can be a very rosy picture in the next 5 years because of the foundation that we built of good solid income generates solid cash. That's what's going to happen to this group. Okay. Let's get down to the reality. We still got to run a business. And you can see when we spoke last set of results presentation, we said the revenue will deliver positive growth. And now we've said it will be single growth. So there is some growth in revenue. The EBITDA, we were expecting some growth, but we're coming on flat at the moment in our management accounts that we've prepared. And the HEPS and EPS, we said 27%, but now we're saying 25% to 35%. And you got to understand, there's one number causing this problem, is interest. And you all know that what happened is that we were understocked in the past, we've got overstocked, but interest rates went up at the same time. In the U.K., interest rates went to 5.25% from 0.2%; Australia, 1 and 2s went to 5.5%. In fact, now you're paying prime plus [indiscernible] so that you can buy [indiscernible]; and then South Africa, we all know what's happened. So if you accept the interest is a once-off. It happened at a point in time and with our correction of balance sheet, that interest shouldn't recur. Then focus on the operating income or the EBITDA, that's flat, and you can [ claw-back ] the interest. Those maintenance has all become positive. They just turn upside down quickly. And it can't happen in the short. This is not a 5-year story. It's a 1-year story, and you should be able to see that upside down in the short term. Okay. So let I believe I'm out of time. [indiscernible], you're sure. So yes, we were a bit overstocked and the OEMs were overstocked and we had to bring our stock in. Yes, we do. We had to play the game with them. You don't tell no to OEM. At the end of the day, it's because of them, we make money. So you pay ball with them. But in the last 12 months, we have worked out a plan and we've done it and it's happening, and you'll see it when we report our results, our stock has come down by about ZAR 5 billion. So that means if you work off this space, just look at the interest saving. You don't have to [indiscernible] a accountant, take 5 billion times 10%, and that's your saving. Doing nothing else. That number we'll give it to you. We'll give you that kicker in your earnings. The vehicles were higher. This is a seasonal business. So December is your peak, but you have the most cars in the car rental business. And the car rental business generally is a 9-month business. So it will start from July, August, right up to Easter weekend, and then you de-fleet after that. That is why June, we think will be about ZAR 2 billion less. We're hoping we'll be a bit more, but we're working on 2 billion at the moment. So you can see the 5 and the 2, that's a nice way of bringing the debt down at the end of June is the ZAR 7 billion. The 5 is continuity that you can see that through, the 2 will go up and down because when we up-fleet and then we de-fleet, and that will happen. But the ZAR 5 billion hopefully is built into the base. Okay. So we've done this by Ockert and myself. We've done it with 20,000 people, and we haven't forgotten where we've come from. So you can see our transformation from 2018 to '23, 25% to 46% at top management. Aki, we didn't look after all the white guys. We looked after everybody here. You can see that. And the senior people, 33 to 53; middle, 39, 53; and junior 59, 74. What's interesting that if you look at the DPs as well, which is very difficult because you're competing with a lot of people in that industry and they poach from the people who are #1. We're #1. They always poach from us. So we develop people, but they get poached as well. But touch would be holding on to 55% of our DPs. Black representation is 78% and the female representation, clearly, it's not ideal. We're working on it. I'll get you to 40%, don't worry. And we [indiscernible] the number. The other things we haven't forgotten is obviously, we -- there's 2 CSI projects that we work -- we don't do 10 or 20. There's 3 big ones that we do. And the one big one is -- in fact, I'll come to the CSA. And let me just talk about this. The family bursaries, that's for our staff. So we provide some bursaries, making sure we look after them and we provide learning opportunities for them. We looked at this YES program about 4 years ago [indiscernible], and we were called in to a meeting and said it's a good program. And I told them, why don't we start with 100? Let's see how it goes. We're very conservative people. So we want to make small mistakes. And the 100 people have now become 1,395 learners in our business. And what's interesting is that 45% of these people are staying our business. So you can see it's become a good area for recruitment as well. So we're not paying recruiting agencies fees. The YES program is providing us a good platform to keep these younger professionals in our business. This is the one I want to talk about. So [indiscernible] of myself, but how do we get back to the community? We don't go there, take pictures, leave the school and go. We look after 79 resource centers in my language that we call libraries, because that's how I grew up in libraries. I didn't grow up in a resource center, but that's what they're called now, nice English to use. There's 90,000 learners we touch the lives of and hundred librarians that we employ in these libraries are people unemployed from the community. We teach them how to teach, put them into our libraries and we pay them a salary. And that's what we've created. Now these libraries are either structures we put up or we've modified, but we pay the librarians to be there. So they are there Monday to Saturday. The big libraries, they have 2 people. The small libraries have 1 librarian, but there's someone there telling the kids which books to take, what to do and teach them how to read. Now you can say, you're doing the government's job. Here, I'm doing the government [indiscernible] we do. If the government doesn't want to do it, we help. And that's what we're doing. We're touching the lives of 90,000 children in this way. And Fundi and I, 1 of my -- we sit on the trust. I've done a budget presentation for them, that this project can run for the next 10 years and we've got enough money. We've ran for 20. We've got money for 10. In 10, hopefully, Ockert will be good to us and give us a bit more money. And [indiscernible] good and [indiscernible] will give us some more money, and we'll continue long after that. So this is not a photo presentation. We can take you through the libraries today, and our libraries are there, employed as running our program. And then if you take the Unjani Clinic, these are containers that we take. We refurbish them, put them in the townships and they consult to patients and nurses can write scripts up to schedule 4. So you don't have to go and wait in a queue in a hospital or a clinic. You've come to this, and we take these clinics all over the show and you can see, we've got 197 facilities. So you can come there. The nurse will examine you in a private place because there's a curtain, beds, all that kind of thing. And they've got [indiscernible] -- and within 5 years, these businesses become theirs. We have nothing to do with them, they're running. So that's our contribution to employment creation, empowering the nurses and make them empowered to be entrepreneurs. And the scholar patrol, it's Berenice's favorite. I mean she loves this program. So she's touching the lives of 2.4 million children. Great initiative. She started it. So I was a bit skeptical, [indiscernible] an accountant, but she was very keen and [indiscernible]. And today, she's grown it to 2,847 schools. We don't forget about the environment. So we work on our fuel and electricity and what is a harder one because we don't control the meters, water leaks, all that. They bites us sometimes, we get no control of them. The ones we control, we have to reduce the fuel by 23% and the electricity by 19%. Okay. Ockert and this is -- yes, that's my last one. I know you're getting impatient. You want to kick me off the stage, but give me my last slide. So what have we shown as a group is that you can see people are resilient and they're agile. Because remember, we sound like -- I said, we are already 5 years, but we got COVID in between. Can you imagine what happened to us at COVID? When we got the news on that Friday or a Thursday, all dealerships are closed. All the parts businesses were closed. I got into a team's meeting and I spoke to the EXCO members. Lucky, Kerry taught me how to use Teams. And I went on to Teams, got all of the EXCO members, and I said, guys, this is something no one could imagine, no strategic initiatives could have helped you now. We are where we are. Can you guys keep cool heads, talk to your people, tell them we'll pay them full for the month of April and May. I didn't know when we were going to get it to work. That's a commitment the EXCO gave to its staff member. They'll pay them in full for April and May. They have jobs when they come back. I don't know where they have a business that offer them jobs. But we offer them full salaries. We offer them jobs, and we said no one's going to lose their jobs. We evaluate our position by December that year. So we have to keep the people activate -- excited. And then some of the guys started, when we got a bit more gap in COVID, communicating with staff, talking to the clients that your cars will be serviced, your maintenance plan or your service plan will be on it, even if it expired during the COVID period, we'll honor it for you. We're going to open up a workshop on a Saturday, and we'll service your cars because we knew there was going to be a backlog initially when we opened. So we did all these communication during COVID. So when COVID, we came out of COVID, our workshops [indiscernible] busy. The guys are busy on Saturdays. But you can see the communication didn't happen that day COVID ended. It happened from the beginning. So we were keeping our clients up to speed, and how we came out and we've reduced our debt by about ZAR 5 billion within 6 months. We got extensions from the OEMs. We've got from the bankers. They had a great support for us at that time, and we got out of the trouble that we were in. Again, people and banks and OEMs, 3 people helped us get out of the mess that we're in. So you can read about the rest of it. I mean we do all the good things like responsible capital allocation, strong cashflow. We've talked about innovation. The portfolio, we've got a great portfolio, which is multidimensional. So we look after a customer from importing, selling, renting, aftermarket parts. You can see we look after the family. And at the end of the day, we've got a great team of 20,000 people making all this happen. So all I can say to you guys, we've invested in Motus. We believe we've done this responsibly. We've created a great foundation from Aki. We've done -- we've built a great foundation for you, for us to go ahead, for Ockert and the team to take this business to where it belongs. We are on that good to great journey. So hopefully, we're giving something good. Great will come out of it at the end. Thank you very much for listening to me. I took my -- I over did my time. Sorry, Aki.

A round of applause. That's a -- I think you will agree with me, extraordinary leadership through some very, very tough times. Thank you very much. And really taking a business like this and showing the diversity and showing the agility of this business in these times, says a lot about the Motus Group. So thank you very much. I'm sure 1 or 2 of you will have a question that you would like to ask the CEO. We'll give you that opportunity in just a moment. But the man who is responsible for the zeros, right, Osman? Adding the zeros and making sure that the growth happens in a sustainable way, ladies and gentlemen, and a person who's got a really critical role in this business as the Chief Financial Officer. And it gives me great pleasure in welcoming to the stage, Ockert Janse van Rensburg, also played a real pivotal role in steering Motus through the unbundling and the listing of the Motus Group. So ladies and gentlemen, please a big round of applause for the CFO of Motus, Mr. Janse van Rensburg.

Thank you very much Aki and Osman for all those introductory words. Yes, it's a tough act to follow. I mean you've seen Osman in action. That's how he is every day. So there's a lot of passion. There's a lot of energy. But if you have been in the relay, you'll realize that the person you hand the baton over to is normally slightly faster than the person who actually just -- so thanks for that. So -- it's going too far. So I had a lot of practice in positioning the strategy and then the reason a while because obviously, we needed to employ a new CFO. And as I will be taking a new position of Osman in a few months' time, every CFO I had to interview, the first question I ask is, how does automotive work and how do you actually make money? And what is your strategy? So they had a lot of practice going through that process. So at least I had a few dry runs. But it's actually quite simple. And this is simplicity, I didn't learn by mistake. I mean I had to learn from firstly Manny and then Osman. So I had 2 great masters teaching me. And they actually told me there's really 2 things that you need to know. The one is you get this big funnel of product coming in and after that, it's all around staying with the vehicle and staying with the customer. That's how you're going to make money. So I'm going to try and explain it to you in just half an hour, you probably needed 2 days of the [indiscernible] session to really understand it. But I'll try and explain it to you in a simple fashion. So the first slide, as you can see, is what have we done over the recent past to actually position ourselves for growth? And some of you might have got it, and some of you maybe didn't get it that much yet. So hopefully, you get it after 2 days. We've made a lot of small incremental steps along the way over this whole 6-year journey that Osman has been speaking about now, but even before that, every time we made a specific step, we actually try to lengthen the time that we either stay with the vehicle or stay with the customer. That is as simple as it is. And as you will see in this slide, yes, of course, we make money selling that new vehicle upfront. That is part and parcel of what you need to do. But thereafter, there's a lot of touch points after that, and that is what you'll see in the next slide. So for the next 6 years, other people are going to bring that vehicle back and you need to replace -- there's a replacement cycle taking place. There's workshops that you need to look after. There's car rental in between all of this, in the end that whole trading happens. In between, you would have sold the parts. And then as this call progresses and get sort of a life beyond 6 years, you'll normally find that's where the drop off comes out of the warranty plans, et cetera. And that has been part of the reason why we were so aggressively growing the Aftermarket Parts business, because that's where we're actually going to pick it up. So you can see where we play, we've actually extended this life of the customer and the vehicle. But not only did we do that, we actually have -- [ internally ] maybe I'm oversharing here, but in any case, let's see what the competition can do with this. There's 6 growth revenue lines that we actually drivers of performance which we focus on. And the first 2 everyone sort of gets, because it's around that new vehicle and the preowned vehicle. But we are not just reliant on one aspect of this automotive value chain. We actually have built a business where it's reliant on lots of different things. So over and above that, it's the parts, which most people would understand, and I'll get into that detail just now that it's in warranty parts and outside of warranty parts. Workshops, as you would have seen in some of the examples in the dealership we act. Of course, we're playing quite aggressively in the Car Rental business, where we've got a very strong market share. And then you get this other service offerings. So there's a little bit of a dark hole and yes, Kerry will share a little bit more of that today with you. Out of all of this, obviously, you have to continuously adjust and adapt and you need to be very innovative in operating some of these new services because as soon as you get your new platform, of course, it can be replicated by your competition as well. So this funnel of innovation and what you will see today has been coming for a long time. It's not something you suddenly decide on 1 day, I'm now suddenly going to start innovating and trying to do and release a whole bunch of new products and services. It's actually been coming long time, and you'll see all those building blocks during the day. So what I'll do now is just take you briefly through the -- I'm going to just group them in 3 areas because together through all 6 is actually, it is going to take too much time. But you'll see, and I'll talk a little bit about the vehicle side then the part and then this annuity income streams through services. And size-wise, it's actually quite nice splitting it pretty much into those [indiscernible] because even though a lot of people's first time impression when they speak to you is like, well, you sell vehicles, you must be making a lot of money on that first time sale. The answer is actually probably no. Through just the sale of vehicles, yes, we probably get a little bit more than the third, not that much more. The part [ two ] are slightly less than 1/3 at the moment. Your service is exactly 1/3. So if you take all 3 of those to combine, you can see why I grouped them in a way I did. I think Osman spoke a lot around the EBITDA contributions and now we try diversify. So I'm not going to spend much time on this. But the only key takeaway is that we are not reliant in one area of the business. I think in any given what point in time, you're going to have a lot of volatility in a particular part of the business. And I can always come and show you exactly what's the competition and what they have done or what is the challenging market conditions we've got around it. But everyone can plan one vertical in our competitors' landscape. In our case, we're actually playing across all these landscapes. So yes, this current year is South Africa in a difficult place, was there a lot of challenges, of course, is, but our International would have picked up. Did we have a huge problem during COVID with car rental, yes, they made losses. I mean you could have seen what [indiscernible] they made losses and debt in COVID as well. But the rest of the business picked up. So I think this is the beauty of integrated model, the way we've got it that is so diversified, not just around geographies, which Osman already showed you, but also through the different products. So let's look at vehicles. Overall, what do we serve here? What's the landscape? Where do we play? In South Africa, we sell about 90,000 to 100,000 vehicles a year, with the market leaders with roughly 20% market share. In the U.K., we sell a lot less vehicles. As you can see, there's only about 22,000. This is still around new vehicles. But what is important is we actually quite a big play in the Commercial Vehicle side. And I think a lot of times people don't quite realize that we've got about 8% of the commercial vehicle market share in the U.K., and that's a very big market. So just to put it in perspective. And then of course, Australia, where we've maybe just started, and you can see we sell about 10,000 units per year there. In the preowned vehicle space, this is the one that sometimes people also don't quite see exactly how big you are. You have to go and stratify a little bit around grouping it between 0 to 5 and then 5 to 10 and 10 to 15, et cetera. We predominantly play in the newer vehicles. So if you look at the 0 to 5, that sort of part that you're playing in is about 312, which is exactly 1,000 vehicles in that category. And in that category, we sell 65,000 vehicles, which once again is about 20% of that category. In the U.K. and Australia, it's obviously a lot less, you don't sell a lot of second-hand commercial trucks, et cetera. So it's more on the passenger side. So you can see through that whole cycle, how important how big this market is. Now you may ask yourself a question, you're already quite big. Can you actually grow this? Is this something that you can do something with. I mean, Osman [indiscernible] x growth in South Africa, which I probably don't like that much, but in any case. Let's have a look at the growth opportunities. I've got to split these slides into around growth and then almost like sustainability. What do you do from day to day and what is the real growth area? So I think the first one in the growth areas, we must understand that where we find ourselves today, there's a lot of new entrants coming into the market. I mean you all know in the South African space, this is really where you can do a lot. There's a lot of new entrants, mainly coming from the East. And we would be in an ideal position to be effectively a plug-and-play. We've already mastered it. We know exactly how to import vehicles. We've got the [indiscernible]. We now have the logistics channels work. We've got the dealerships. We've got the systems. So as a plug-and-play, we believe that would be -- one of those distributor brands is probably going to be able to land fairly soon. So that's maybe the first one, growth opportunity is definitely there. And the second bit is maybe around that pre-owned vehicles. As you saw there, I mean, we were very specifically playing at 0 to 5, et cetera. But if you actually stand back and you say, "Well, are you actually playing your rightful role? A lot of the first replacement cycle happens in year 1. It may sound weird, but the reality is, remember, they came from car rental, even some of those demos being sold. So a lot of the first replacement cycle happens fairly quickly. And if you then take you another 4, 5 years, you may actually fall outside of that gap that we were sort of playing in. So I think a real opportunity for us to grow is to really look at that second replacement cycle. I'm not saying we're going all the way out to like 10-year-old vehicles. And as Osman would have told you in previous presentations, you create all kinds of concerns for yourself there. But we probably have restricted ourselves a little bit there. I think with -- you'll see the financial positions and the future slides and maybe only at the results presentation, but you will see there's the ability to grow into that space. What do we do then around the strategy for just sustainability because I mean, we are doing what we're doing, and we're doing it quite well. And that's something that we continuously work on is around the footprint. So firstly, on the footprint, yes, OEMs change, new entrants come in, others lose market share. And I mean, I'm not going to name and shame the ones that's been losing market share, you can see exactly who they are. And over a period of time, we've obviously got this very well-developed footprint. This footprint is still required to actually sell the vehicle. So we can easily enough do a lot of multi-franchising, which you have seen in some of the other Investor Days that we've showed you, for instance, showcase Mainland and what it looked like. So you can get a taste of that. But you can obviously rightsize your footprint according to the brands that you represent. And yes, can you do more in the sites you've got? The answer is yes, because you need to just switch your assets a lot more. We also want to be very selective in the OEMs we chase. I mean you would have seen there's a lot of entrants coming through in the last while. And we were very selective. Yes, that everyone go and visit China and visit India and visit everywhere else to go and see what sorf of brands are coming in. Yes, the answer is yes. So Rob did go to the -- our MD in the U.K. You did go to China. What did he have a look at? He wanted to see exactly how many BYDs we can get. Of course, we've got them in. We got them in the U.K. [indiscernible] has gone to China. What does he get? He got MG and Chery that's in Australia. We see Rene's already gone to the China as well. It's a popular place these days. He's been to India and China. And we also have those Chinese brands coming in now. We've got Chery. You've got a [indiscernible]. We've got Haval, we've now going to have some MGs. So you can see that is all in play. Of course, you need to continue to look at who's the new brands coming in and where do they going to play and to what extent. On day 1, any of the new entrants coming into the market will probably be a lost leader for you initially because there's no workshop money, and the only reliant on that sale of that new vehicle. But in any event, we will pursue the ones that we're after. We want to maintain our market share of at least one of 5 new vehicles. And then I already spoke about the increase in some of the preowned. You'll see a lot more during the day around the digitization. I'm not going to spend much time on that. If you then turn towards parts and parts is interesting because everyone knows it, but no one really see or understand the amount of money you're making out of parts. And parts has got 2 legs in our space. The one is around the in-warranty parts others is out of warranty parts. So in warranty, what would that be? In warranty would be your areas where you've got the importer brands. So over and above just importing the vehicle, you will also be a distributor of parts. Not many of you would know that your parts don't necessary come exactly from that same OEM structure and channel that we get the vehicles from it normally comes from a slightly different -- different channel. So it normally come from Dubai, et cetera. We represent, obviously, all the imported brands. And as you can see there, I mean, the SKUs in stock, you can see it's quite a large business by itself. Then you also have the out of warranty. And that is where, during the period that you were obviously as your vehicles and warranty, they will normally come back for service, but thereafter the drop-off would happen. And that is where our aftermarket parts actually come into play. Initially, obviously, started in South Africa, and you can see how big that vehicle parc is that you potentially can service. I mean it's 9 million vehicles outside of warranty. But then more recently, through those acquisitions and the expansions we've got. We've now got into the U.K., there's 32 million vehicles that you can service. So you can clearly see just from the size, that size of price, why did we go there? The number of parts in a vehicle, I mean, these are all the stats that luckily, you need people who actually know these parts as well. So thanks, Malcolm for all the stats. There's 30,000 parts in the vehicle, 2,000 moving parts in the vehicle. So you can see how many of these parts actually get sold in a year. And if you start looking at those SKUs, you've got in stock, they are massive. But the real remarkable number here is if you understand the size of these businesses. And if you look at the U.K. and you suddenly see they do 16,000 deliveries per day. Then you realize there's a real business here, and that is why it will take over and actually, I think, be one of those real success stories over the time -- [indiscernible] time. So how do you grow this? I mean we already -- already showed you. The first one is, once again, is around that plug and play because over and above just the getting a new OEM, you can also get OEMs where you can distribute parts, as I said earlier. And have we done that successfully over the last few years already, yes, we have started with that. So you do also distribute parts for vehicles outside of just those imported ones. Be the dealership of choice, obviously, for a new entrant, and that is the discussions we will have and how we can actually partner with them. So even though they maybe want to control the channel through vehicles and the dealerships, we would be able to do something else. Then in our aftermarket parts side, the out of warranty one. And this is really the exciting one. And you have to almost go and visit and see and I was very privileged that the [ non-execs ] [ entrants ] in April as well to go and touch and feel this business because you need to almost going to appreciate our big [ disease ]. I mean we initially see those warehouses. You do get scared as the finest person thinking, well, they're probably going to fill this up and then we're going to be overstocked and it's going to cost us a lot of money. And then you come to the realization, this is actually a great business if you're a finance person because you're looking at something with high turnover, high margin, low value. So much lower cost of capital as well is required. So great business to suddenly go into. And the first bit is really, well, what can you do with what you bought already? I'll get to that in the next slide because on this slide, I only want to show where we're going to grow. And where you're going to grow here is it's quite interesting that everyone develops a private label in most of these regions that you go into. Certainly, with the size we've got within the U.K. but also obviously, into South Africa. You now have the ability to create your own private label brand. And that has actually been a remarkable success we already had in a very short space of time as we were able to roll out our own brand called FAI PRO. And likely in the exec meeting this morning, Niall could already share with us that the first GBP 1 million revenue, we've reached that target already. So you can see in what the short space of time you can get the FAI PRO brand going. This is a brand that you don't necessarily need to sell only in the market you're in. You can actually go into other markets -- and we're certainly already starting to have discussions with adjacent markets and also in other areas that we do play in. So unlocking obviously, new geographies and further grow in the European side of the business. And then the last one, which you will hear a lot more around today, there's a whole area of the market which is actually slightly underserved. And that's the informal market in South Africa, also in the rest of Africa, but quite a bit in South Africa as well. And in this particular one, we will talk around the Klutch and you'll see some of the demos on the work that we've been doing there. On the sustainability side, like I said, you can grow this business, but you also actually want to sustain what you've got. And sustaining that is all going to be around getting your supply chain better, getting your procurement better. So what have we done internally? It's actually been quite a big step. It's the first thing we had to do is decide, we're going to get rid of structures in the U.K. and South Africa, and we're actually going to consolidate under one head of supply chain and one head of procurement. And I think Niall took quite a brave step when he had to go and sort of implement that, but it's already starting to pay dividends, because if you can actually go and procure as one Motus when you go and talk to suppliers, mainly in China, you can obviously get a lot better pricing in that. So we have to position ourselves in that and actually get the product offerings as good as we can. Through a bulk buying. And then I'm going to talk about the last one. The last one is all around annuity income stream, that's the service side of the business. Broken it down into really 3 areas. So the one is around your workshops, which every one has taken the vehicles obviously did dealerships before and you've seen these workshops. That's a massive business. Okay. Yes, very difficult to exactly go and describe for you the operating profit all the way down because there's a lot of allocated costs. But if you actually just start looking at the size of those businesses. I mean, in South Africa, we do per month, 170,000 hours of labor. So that's the amount old auditing terms, I also came up with auditing profession. And if you can actually charge it -- you can charge off some 170,000 hours, that actually is quite a big business. And you will obviously make a bit of margin on the hours you charge out. U.K. at the same, 91,000 hours and on the passenger side 24,000 and in Australia, 23,000 hours. So quite a big business. This whole aftermarket parts workshop and it's almost like the engine of the room here. And I think that's why it's quite important also note to [indiscernible] . We always want to make sure that we keep those workshops business because even though a brand may continuously be declining, you'll see some of these brands as we say the brand is actually declining. You'll find that we'll normally try and keep those because all these workshop hours still continue for a long after the brand has sold these vehicles. And while you can still keep it, you will obviously try and do that. Around the vehicle retail side, you all know Europcar, you know Tempest. We have a fleet size of about 15,000 at a low point and 22,000 is high. So It's normally somewhere in the middle. And as Osman explained you have the up and down fleet during the period. We will always try and target approximately 70% utilization rate. And you can see the stats there, how many bookings you get, 45,000 bookings. I mean this is also by itself, a very large business and probably why some people decided to go and list it by itself. So you can see a lot of competitive information around this, but it's the size of our business, and we have about 25% market share in the country. And then the last one, the one that's a bit of a dark spot for most of the investors. I know when I talk to investment communities, I always ask, so how do you actually make money out of mobility solutions. We don't quite get it, but we continuously see it just making more and more. So there's a lot of annuity income streams. Kerry will speak about that just now. So once you heard [indiscernible] have under too much, but you can see what's in there. So how do you grow all of this? I mean, [this slide] you can see, it's already a very big business. So the growth here is around that warranty and service. So you normally find as quite a large drop off at the end of the warranty period. And I think one of the key strategic initiatives for ourselves to say we want a graded out of warranty service offering still. In a lot of cases, it's not really that much cheaper to go outside, but people's perceptions are normally the OEM dealership side is actually quite expensive. We want to still continue growing that size of the fleet within car rental. We're still not at pre-COVID level. So I mean it's quite interesting that almost your perception is we should be, but the reality is we're not even there yet. So it's still growing in that particular side. And then obviously, launching new products, as you can see, a lot of initiatives around ready to go. We're going to launch new products in mobility solutions and obviously, partnering with financial institutions to try and grow that side of the business. And on the strategy side of sustaining it, pretty much the same. I think just doing a lot what we're doing, as Osman said, from that good to great journey. Trying to stay -- the extended replacement cycle, increasing the size of the vehicle parc, et cetera, and capture some of these out of warranty customers. So does that mean we're going to stop acquiring stuff? Or are we now going to do more? Do we have to do more? Where do we find ourselves? I think we do find ourselves a little bit of a consolidation phase. Yes, we had a very large acquisition fairly recent. And anyone who is following the debt, one of the reasons was, obviously, a big acquisitions that came with a lot of debt. But luckily, as you could see from EBITDA, you will repay most of that pretty soon. I think at the moment, when we find ourselves with the acquisition strategy, and this will obviously keep on evolving from year to year. To say in South Africa, we probably don't want to do too much. I think we want to grow the mobility solutions side of the business if something comes [indiscernible], which feels in the right space will probably have a real hard look at that. Further than that is probably bolt-on acquisitions around aftermarket parts. Do we need to grow our dealership footprint in the retail? Probably not. And you would have seen the other growth initiatives we have. In the U.K., once again, I think if anything comes by with acquisition in the aftermarket parts space as long as you don't overpay. I think we've now been inundated by office, from what we call estate agents, which keep on bringing these deals to you. Not necessarily something we want to just jump out. I think we've got a really good business. We've bedded it down. We want to try and sweated quite hard. But if there's an area of a market where the only way you can penetrate it and get good traction is through an acquisition, we'll probably look at that. Bolt-on acquisitions on our commercial side, I think the commercial tracks, as you would have seen, is actually quite a successful part of our business. It's very profitable and if we can land a brand, either in a region that we're not currently in or just grow the DAF brand that we're in, we'll probably have a look at that. On the Australia side, we're getting much closer to getting that full synergies that we have always been looking for. So at 46 you're getting much closer to that. But once again, if there's a bolt-on and it's complementary in the area that we're in, we're not going to go outside of the Victoria and New South Wales provinces. I think we're quite comfortable where we are, but we'll have a look at that. And similarly, also if there's an aftermarket parts opportunity, that will be the other one we will have a look at. Now do we have the resources to deliver on this strategy? Well, obviously, you've seen the big cash flow and I see quite a few bankers looking and are thinking we're probably making too much money not going to borrow enough. I mean the reality is if larger acquisitions comes by, we will look at it again. But what we had to do in the last while is to sit and actually be very clear on how our strategic funding model needs to work. And we're very clear in our minds that we're actually going to split it between SA and International. And through the [indiscernible] and his strategy team, I mean, we've been working hard to actually land our repositioning of our international syndicated loans. We've just finished that, and you will see that we've got another GBP 150 million. It's a revolving credit facility. It's a 3 plus 1 plus 1. In layman's term, it's a 5-year deal. But see the bankers like the 3 plus 1 plus 1. And Secure us probably you're doing that's why we've got a year. Obviously, this is going to be linked to sustainability targets. I think that's the name of the game these days. And it's in any case, what we've done in the past. So we just need to finish 2024 and then we will actually have those targets in play. So as you can see, just through the numbers on the slide there, we've got more than adequate facilities to actually fund any growth opportunity coming our way. We don't really need to go in and rush out, go and raise money, do anything like that. I think the -- in financial fraternity has certainly seen the way that we've been able to deal with our cash flows and the way that we've been very cash generative in past. And that's why we've been getting very good ratings. We do believe long-term funding is the way that you actually plan your future, and that's why we've put it on to bed. So as you can see in a nutshell, I had to -- I probably also ran out of time, but then so be it. Sorry [indiscernible], he is trying to be gatekeeper here and he is not doing a great job. I'm much closer to [indiscernible] and Osman, by the way. But I think, as you can see, we've certainly positioned ourselves to take advantage. I mean someone asked me earlier say you must be really grateful that you had a good election result and you're going to get the benefits. I'm like, well, when we did all the strategies, I don't know that was going to happen. So if that gives us an additional kicker, so be it. But at the moment, at least, we don't have to rely on something coming from the side. So on that note, we can obviously take questions a bit later.

Thank you very much. Thanks very much. Ladies and gentlemen, Ockert the man keeping tabs with all the finances over there. And it's still quite exciting. I mean, as a consumer, I'm amazed at how many car rentals happen every single month. It's quite an extraordinary number. Talking about car rentals, the prize that I spoke about earlier is coming up very shortly, so don't go anywhere. I'm going to tell you we're going to announce who's the winner in just a moment. Well, we've been talking a lot about the innovation that's happening. And I mean, let's be honest, between Ockert and Osman they spoke a lot about finances. And yes, they might find that exciting, but I find technology and innovation even more exciting, right? And the lady that I think has got the coolest job at Motus is Kerry Cassel, who is the CEO of Mobility Solutions and the Head of Innovation and Technology who's really taking this group to a next level when you look at this digitization process that we've been talking about. And Kerry's been around for -- since 2002. I think you mentioned she's a CA as well. So there is a boring side to her as well. But we're not going to talk about that part. She's got very exciting role today, Kerry. And please, I want you to join me in welcoming Kerry on to the stage to talk about this innovation and this technology in this mobility space. Please welcome, ladies and gentlemen, Kerry Cassel.

Thank you, Aki . So it's great to see a lot of familiar faces here today. For those who don't know me, I'm Kerry, I'm the CEO of Motus Mobility Solutions, and I have a couple of other group functions that I fulfill as well. So the first business lesson that I ever learned from Osman was when I was probably about 23 or 24. I was an article clock at Deloitte, and Osman was a senior partner at the firm. And at that time, he actually won the Imperial Audit for Deloitte. And I was one of his managers on the audit. Actually auditing [ Manny's ] business. And soon after the audit, I actually joined the Imperial Group. And Osman was still the lead client service partner at Deloitte. So I was his client and he was my service provider. And he came along after the audit and said to me, Kerry, how was the audit how would you rate the service and everybody knows me that I'm pretty direct. And so I gave him some very honest feedback about what our thought needed to do to improve his service delivery. And 3 months later, he joined Imperial about 10 level senior to me. And I learned that the South African business community is a lot smaller than you would think. Okay. So this is a complex business, and yet it's also very simple. So I know Osman, Ockert, Justine always give me a lot of feedback about the fact that there's a lot of questions about mobility solutions and how it actually works. So in essence, the way you have to look at this business is it is a matrix of channels and products. And when you understand that you understand this business. There are a lot of channels, and there are also a lot of products. How do you grow this business? You grow this business by adding channels and adding products. It's actually that simple. Looking at the channels first. The first channel is the wholesale channel. And I'll give you like a real-life example of how this would work. So let's say, as an example, Hyundai is launching a new vehicle into the market, they will come to us they will sit with us. They'll say this is the car that we're launching. And we'll work out what should the product on this vehicle look like? What sort of service plan should it have? Should it be a 3 year, 60,000 kilometer service plan? Should it be a maintenance plan? The manufacturer warranty is it adequate in case of Hyundai, obviously, leading 7-year warranty is adequate. But maybe we want to top it up to a longer warranty, a more comprehensive warranty. Do we want to build roadside assistance into the offering, et cetera, and we work with the importers to put together this compelling value-added proposition. So in that space, we have what we call 3 VAPs, the VAPs being a value-added product and service, of which 2 are non-insurance products and one is insurance. The next channel is retail, new vehicles and used vehicles, very important and used vehicles. And this is basically our dealer floor. So now the customer gets to the dealership, they buy the car. So let's again continue my example. It had a 3-year 60,000 kilometer service plan. F&I, finance and insurance manager will work with the customer and say, well, what other products do you need? What sort of mileage do you do? How long do you normally hold your cars for et cetera? And they may, as an example, upgrade that to a 5-year 100,000 kilometer service plan. So in that space, we have 7 value-added products that we offer, of which 2 are non-insurance and 5 are insurance. We also will assist the customer with vehicle asset finance, we call that VAF. So Mr. Customer, do you need to finance? I can consult the banks. We have online platforms that do that very efficiently, and we will then arrange the finance for the customer on the dealer floor as well. Direct marketing. So this is a big one for us, and this is where a lot of our growth has been in the last couple of years and where we expect a lot of our growth to come from in the next couple of years as well. Obviously, the asset that drives this channel is the database. And we have spent a lot of time building data warehouses, data lakes. I mean, it all gets very complicated. But I would say our first data warehouse was probably completed in 2009. So we've been on a long journey with this, and we're starting to see the benefits of that now. This can take the form of, let's say, for example, a call center. That's not the only way that we do direct marketing. But let's use the call center as an example. Let's say that same customer took a 5-year 100,000 kilometer service plan, but perhaps they didn't take credit life. So what happens if something happens to you and you have this outstanding debt on your vehicle Mr. Customer et cetera, et cetera? So that's the direct marketing channel and a big one for us. In that space, we have 10 value-added products. And of those, 3 are non-insurance and 7 are insurance. I think it's also very important that I emphasize here that we're not the call center that cold calls you and bombards you and irritates you. Okay. We love you. We are lovely. So our call centers will make sure they are contacting you with the right product at the right time. We have renewals. So when your products come to an end. We will look at whether you still own the vehicle, do you still need the product, we'll do a whole renewal campaign in that space. There we have on non-insurance product 3 insurance. Big one for us, and I think most are surprised by those workshops. So whether you sell cars or don't sell cars, you sell -- you see thousands of customers through your workshops every day. And in the motors network, it is thousands per day going through our workshops. So how do we actually managed to market to those customers? Well, we have service advisers in those workshops. And although they're not accredited to sell our product, they are trained to assess whether a customer might need a product or not. An example, you arrived in the workshop and your car has a lot of scratches and dings on it. We have scratch and dent products. That service adviser will say, do you want someone to phone you in connection with a scratch and dent product. So that is a very big sales channel for us, and we have built a platform called Coin-It, I'll show it to you just now, which helps us to move those customer leads from the workshop into our business. And then we had the vehicles older than 6 years, and that's become a big focus area for us. The interesting thing here is that used vehicles actually presents a better sales opportunity for this business than a new vehicle. The risks associated with owning a used vehicle are higher and thus the opportunity to sell value-added products and services is greater. So this is not just a new vehicle sales business. This has got a lot of drivers behind it. Our products -- we're going to put with this presentation on the website. So I'm not going to go through the products in detail. You can go and have a look on the website to get the details of the products. But in essence, the vehicle is covered from bumper to bumper, whether it's your services, whether it's your wear and tear items, whether it's mechanical failure covered by warranty, whether it's your tires, your rims, your paint works, your scratches and dents, whatever. We cover, bumper to bumper, every risk associated with owning the vehicle. We also cover every single risk associated with financing the vehicle. So credit life in the event that you unfortunately pass away through to credit shortfall insurance. All of those risks associated with vehicle finance are also covered. So if you want to understand more about our products, they're actually very simple. They're very compelling, go and have a look on the website. Understanding our business in Quantum. So we have had over 20 years experience in this industry. We pay out more than ZAR 1 billion worth of claims per annum and the really compelling thing about this business is, obviously, a lot of those payments are going to our own dealerships. So we're creating that churn and that throughput. And that's when you hear Osman and Ockert talking a lot about the integrated value chain, that's what they're talking about. So a big volume of claims going through there. We have more than 470,000 inbound and outbound calls per month. We have over 11,000 telesales every month. And as I said, that's an area that's growing considerably all the time. We currently have 1.5 million policies under administration. And we are covering more than 700,000 vehicles to understand the opportunity, we look again at the car parc of 12 million. And we say, okay, there's a lot that we can do there. And a lot of this is driven by, as I said, our greatest asset, our database. There, we've got 2.3 million vehicle records, 2.5 million customer records. And if we look at the data that we've gathered over that mileage, 30 billion kilometers traveled by the base and all the data that we've managed to accumulate over decades on that. Our distribution network, we have what we call KAMs, key account managers, countrywide. So they're on the ground running, calling on dealership, et cetera. And then we also have a lot of strategic partnerships. So we distribute products through automotive businesses like our own Hyundai, Kia, Renault, Mitsubishi, non-motor automotive businesses as well. There's a lot of other dealerships that support us, a lot of insurers and a number of the biggest banks in South Africa. What's great about our business is that we have diversified operating profit. So we look at our business in 5 revenue streams. Non-insurance VAPs, insurance VAPs, our bank alliances or VAFs that I spoke about earlier, consumer mobility and fleet. Now the interesting thing about this 5 revenue streams is that they move in different actions at different times. So not only do we provide a hedge to the Motus Group. But actually, within our division, we are also very well hedged. As I said earlier, I've been with the business for a long time. This particular business has continued to grow year-on-year since the time that I joined. The biggest drop that we've seen was less than 1% and that was as a result of COVID. We've been through some rough times, 2001 as an industry was hard. 2008 with the global financial crisis was high. 2020 with COVID was hard. But this business has continued to grow. And I think that we're very proud of what we've achieved there. Understanding what drives our operating profit. Our non-insurance value-added products, the drivers there are new vehicle sales, used vehicle sales, the existing car parc, and I'm talking about the whole of South Africa's car parc is our opportunity, right? As well as Coin-It -- through the workshops. On insurance VAPs, the drivers are identical. On VAF, it's about new vehicle sales, and it's about used vehicle sales. That's where we get to advise customers on the finance. Consumer mobility is all of those same channels that we see for VAPS. This is where a lot direct marketing initiatives and digital stuff happens, but it's also about our digital marketing initiatives. And then the leads that you drive in is just a function of how much you spend in the direct marketing space and of course, how cleverly you spend it. And then our fleet business. And our fleet business moves in line with demand that dealers have for demo vehicles, which we finance on our balance sheet. You've seen those motor vehicles financed. Car rental fleets, we financed a number of car rental fleets. And that will obviously move in line with the car rental demand, which is also cyclical and a different cycle. Staff company vehicles and then we have corporate-fleet customers in that space as well. We look at this graph, I like it, I think it tells the whole picture. We have Motus vehicle sales in the blue bar chart, and then we have our operating profit as the red line. And so the points we wanted to make there is the annuity income streams in our division have a very low correlation to vehicle sales. And that is why we provide such a valuable hedge to the group. A great opportunity for us is the structural shift that we're seeing in the South African car parc. What are we seeing? Well, customers are holding their vehicles for longer. And that means the car parc is getting older. And that means, as I said earlier, the opportunity for us to sell our products is becoming greater. You can see that significant shift in the average vehicle finance term. In terms of how we grow, as I said, it's about developing products, developing channels, developing new markets, and it's about investing in our data assets. Product development, we've done some interesting things in the last couple of years. We've taken a stake in a telemetry company that you see on the roads in South Africa as Fidelity SecureDrive. Our stake is actually in the software business behind it, Amber Connect, which is an international company. And what's interesting here is this is not just about telemetry, but this is about data for us because obviously, the data that we are acquiring as a result of this investment is significant. We've developed really market-leading unique scratch and dent product, which will be taken to market shortly. So I think that's going to be a good one for us. And you're going to see today a lot of tech-enabled services, as an example, Liquid Assist, you'll get to experience that hopefully you get to -- if you look at the gifts on your seats, there's a QR code, you can download and get free roadside assistance. So hopefully, you don't have to use it, but you'll get an understanding of how the tech works and basically this is Uber for roadside. So I think it's quite a funky little app. And then we've taken floorplan offerings to market white labeled. So Hyundai, Kia, Renault, Mitsubishi, et cetera, in conjunction with banking partners, floorplan being a financing solution for our dealers to enable them to hold their vehicle stock. Channel developments. We have this thing called Coin-It, which I spoke about with the workshops. Basically, this is an app that lets a service adviser move a lead from a workshop into our business, into one of our call centers. It's been going since 2016, pretty low key, but it was wildly successful. We have generated 350,000 leads. We sold 93,000 plans and policies at a conversion rate of 27%, anyone in direct marketing will tell you that, that's phenomenal, and we've collected ZAR 368 million so far. It provides all sorts of exciting gamification elements, and we've been able to add a whole lot of new products, et cetera, to the platform. False alarm or fine. So let me show you Coin-It. [Presentation]

I think that gives you a nice feeling for our business. I think a lot of fun, exciting stuff starting to happen in that space. Next way we grow through market development. Well, we thought we better sort of diversify ourselves a little bit. We don't want to be completely reliant on automotive, although that is where our heart lies. So we have become the strategic partner and supplier of value added products to some of the biggest insurers in South Africa, including Discovery, Santam, MiWay and Old Mutual. And that is a strategy that has worked very well for us, and I think also very well for them. We will continue to focus on penetrating new industries. So our new focus is on retail. We're talking to 2 of the biggest retailers in South Africa at the moment. We're very hopeful that, that will go somewhere. And then every other industry is the next opportunity. In terms of our data assets. Obviously, one of our focuses is going to be on developing usage-based products. What do I mean? I mean payers you drive kind of product. So your insurance premium or the amount you pay for a service plan, et cetera, will go up or down depending on how you drive. We actually worked with Discovery to develop the first ever payers who drive warranty in the world. So I think that's an excellent opportunity to create shared value. Obviously, ongoing investments in cloud is critical for us. Where do you store all of this data? It sounds like a silly thing and should be easy to solve not so much. And we are saying we have across motors, if I take our parts, customers, our rental customers, workshops, people buying cars, people interacting with mobility solutions. We have 1.5 million customer interactions per annum at least. And we can gather data at every single one of those touch points and the database that we can build as a result of that view of the customer across all the different businesses in Motus is completely unique, and that will differentiate us in the market, and I believe already has. Our people, there's such diversity in our business and I want to emphasize even the diversity of skill set. If you walk into mobility solutions, you will find everything from diesel mechanics through to actuaries, we have it all, and we coexist with much happiness and joy generally speaking. Our values are up there as well, they're very unique. You'll see that [indiscernible] is one of our key values in our business, and we proud of ourself on that. It's not something that hangs on the wall, this is something that really drives our entire business. Technology, basically, I think it's very important that our ability to integrate with third parties is an area we're going to invest the most, given our strategy to penetrate new industries. So that will be an ongoing focus for us. AI, we have a few robots deployed in the business. A couple of them are silly robots. A couple of them are really clever robots. And so we're going to try and deploy more and more clever robots going forward. And obviously, security is top of mind always. Then I thought let me try and unpack our financials quickly in one slide. You will see in our financials and will always be a note to say operating profit includes profit without associated revenue. Revenue is not a good indication of this business because we have a lot of revenue streams that actually come in below the revenue line. Might come in as preference share dividends, might come in as commission arrangements, et cetera, predominantly from third-party alliances. And just to give you an idea of the scale of that, we have alliances with our banking partners in the VAF space and the books are in excess of ZAR 50 billion. And we also have insurance cell captives with our insurance partners where we have books in excess of ZAR 0.5 billion. Annuity income streams flow from those alliances, but also from our own revenue streams, and they flow over a period insurance of 3 to 7 years. So if we stop writing new business today, that income would still come through our income statement for the next 3 to 7 years, non-insurance VAFs, 3 to 4 years and then VAFs the vehicle finance books 4 to 7 years. So economies of scale presents a significant opportunity for us because we've built an infrastructure. We've incurred a cost base and revenue can be added on to that without associated incremental increase in costs. This is a significantly cash generative business with low levels of invested capital and a very high ROIC. And it provides a natural hedge against the volatility of the market and also interest rates. I think to really understand this business, you need to understand not just what we do but understand why we do it. Why our service and maintenance plans so important to us? They're important because they're a loyalty program for Motus. They bring the customers back to our workshops. It's not about making a profit out of the service and maintenance plan. It's about bringing a customer back to our workshops and that creates workshop throughput, but it also creates parts turnover for the dealer and for the importer. That's what drives us in that space. Why do we have a roadside assistance business? Because we want to enhance the customers' experience, but also if the customer does break down, we want to assist the customer in getting to our workshops. Why do we have a motor comp brokerage business? Not we want to earn commission on broking motor comprehensive insurance. But because we want to know when our customers had an accident. Because we want to help them. We want to improve their customer experience. We want them to enjoy their vehicle ownership and we also want to bring them back to Motus. We package Motus products and services in innovative ways for South African motorists, first of all, to create value for our customers, first and foremost. Secondly, to create value for Motus and thirdly, to fulfill our purpose, which is to create mobility for good.

Thank you so much, Kerry. I'm going to ask you to please stay on stage, and I'm going to invite Ockert and Osman back on stage to take a few questions because if you guys thought that you're going to have your nice presentations and not get analysts to ask the tough questions you're sadly mistaken. I'm just kidding. Ladies and gentlemen, before we have our comfort break, we're going to give you a chance to ask any questions that you want, what you've seen from what I've seen, and I'm no analyst, it looks like a very solid business a business that's really forward-looking and built on a very, very strong foundation. So if you have any questions, does anybody have any questions right now? We have a question over here. Yes, sir. And we got one at the back as well. Yes, could you identify yourself and tell us where you're from -- and then from 0 to 10 how tough your question is going to be.

All right. I'm Nick Wilson. I'm a journalist from News24. Sorry, this is directed to both the CEO and CFO. Obviously, I was listening to the presentation, you were talking about the kind of firepower you've got in terms of the facility available it's about ZAR 22 billion, both in South Africa and offshore. Obviously, looking at acquisitions, but obviously, you heard the CEO say that you weren't going to make any foolish sort of offshore sort of acquisitions like Weelee or famous brands. I was just -- a bit more color on that. Obviously, there's a push to get to 40% like offshore as opposed to South Africa in the next -- sorry, I can't remember the time period for that, it's 34% at the moment. Where are you looking? What in particular is it dealerships is it? Is it aftermarket? Maybe a bit more color on that? And then my second question is about the South African consumer. And obviously, how this ties in with the new brands coming in, particularly from China. Obviously, there are so many consumers under a lot of pressure. Take a second. So I was wanting to follow on that Yes, correct.

So it will be unfair for me to promise the future I'll get the new CEO to promise the future and outlook about the consumer, the new bands that are coming in, things like so Ockert can you take the first one...

Let me take that first one. So currently, where we are also with our international sort of expansion, we've obviously been able to increase that to just over 35% at the moment. Why do we say 40%? And why do we think it's so realistic is because of the growth opportunity really have in aftermarket pass. Does it all have to come through acquisitions. The answer is probably no. As you would have seen in those growth slide that you also have a lot of opportunity to grow with what you've got at the moment. We've barely touched most of those businesses. So if you look at those growth opportunities around the FAI PRO brand around the markets that you can still go and penetrate with your existing business, that will already give you quite a bit. You will opportunistically still have a look at acquisitions but you do not need to go and use that much of your debt capacity, just go necessarily go and acquire. I think organic growth and growth with what we've got is probably going to be more than just acquisitions.

So that would obviously come from the U.K. market?

It's mainly U.K. So we still mainly focus the U.K., a little bit maybe in Australia, but you're maybe going to have U.K. and the sort of geographies around it to maybe into a little bit of Europe but that's really where it's going to be.

And that's on EBITDA?

That's on EBITDA. Great questions. Those were 9s, not [indiscernible].

Now the easy question.

Firstly, the easy one. With the economy, yes, the consumer is very fragile at the moment. High interest rates, cost of -- you know all the good stuff. I mean, you're write about it all the time. So now we -- the good news that you've seen from Friday to now to see what changed tomorrow morning. This is a longer-term change where we get a more stable currency everyone invest more and we create an environment where we're create new jobs. New jobs I mean better sales of retail staff cars, all that kind of thing. So the good news will come in the future. Interest rates will come down. So that will say it will help the consumer. It will help us as corporates as well. So the economic situation should be better in the next 3 years than last 3 because of these factors we're talking about. But unfortunately, the consumer has bought down in the last 3 years. So that means the guy was spending ZAR 1 million on that car he is now spending 700, the 700s come to the 500, the 500 to the 300. We're fortunate we play in this space. Maybe this dealership doesn't play in that space because -- but there is a place for it. And there are wealthy individuals in the north of this business is okay. So with that buy down came the influx of the cars from the East, both India and China. Fortunately for India, they've come in Hyundai, Kia, Renault, Toyota, Suzuki, a bit of Nissan. So the area they've come in, we play very strongly because we play very strongly in Hyundai, Kia, Renault. Toyota we sell and Nissan we sell. But in the importer space that Indian products a great product, good quality value for money. Just to give you a context, India sells 4 million cars a year. South Africa sells 525,000, give you a context. So we've got a very good source of cars coming to us as importers and then Toyota, Suzuki and so that place is okay. The new entrants that we got from the Chinese, that's happening. But the Chinese have decided that they're not going to allow local distribution, they'll do it themselves. So that means they bring those cars themselves. As a result, you're going to get a peanut butter approach in the Chinese side. Why? There were 80 brands in China, they're going to keep the factories busy, and half of them are owned by the government. So there's going to be a lot of cross subsidization taking place because if the government wants to keep the factory busy, they're going to sell to us at whatever goes. And if there's a subsidization, it's government's got deep pockets to subsidize on the other side. But what we don't know and no one knows that. In the corporate world, all the motor people don't know. Even Roy wouldn't know. He writes all about us, but he wouldn't know. What's the stamina? Will they be here in 5 years from now? Will 80 brands be here? Will be 2 brands be here? Will they buy each other out in China? Will they service the customer in 3 years from now or 5 years from now? No one knows those answers because they're doing it themselves. So we don't have knowledge of what they're doing. We're opening dealerships. We will open them in the [ cherries and the valves of ] the world, we will do that. Like in the U.K., we've got 5 BYDs now. So we will do that. But no one group or one person is going to make money out of the Chinese because it's a peanut butter approach. That means we'll be the distributor, will appoint dealers as we go along, and they're very competitive. OMODA Chery and [ Aval co ] from one owner, but you can't put them on the same floor. They come from one shareholder, but you can't put them on the same floor. So you can see how competitive they've become. Now no one can give them a Taj Mahal because you're just starting with 2 variants. There's no workshop and there's no parts. In 5 years' time, different story, maybe, I don't know. Will they still be big? Will they be around? Why are we asking these questions? Chery, Foton, they were all here before, then they left. They left us with the cars and no parts and they left. That does happen. So we don't know whether what's happening in 5 or 10 years, they're their own distributors and whoever's opening up, he's just opening up little dealerships, 3 or 4 in different parts of the country. No one's going to have 10 dealerships of one, they can't. So at the moment, it's filling the gaps how long it fills, in this case.

But at the end of the day, it's all about the data. I don't think there's one automotive player that knows their customers better than the Motus group because you've got that rich. And Kerry was touching on that data that you know your customers, you know them over the last few years, what they've been doing. And you've got those other value-added services that only you guys can position yourselves in, right?

That's why when we spoke to the Chinese, and we even try to help them to see the knowledge we have on kilometers the billions of kilometers Kerry's talking about, we can develop products design for them, but they've decided to go on their own. So the -- now what we're doing, we say, okay, that's not an opportunity, but we're not only doing for our new cars. We do it on our pre-own cars. So we're selling products to that and other products that Kerry's talked about. So we're using the data.

Fantastic. I'm looking around the room. I did see there was another question over here and another question over there. So we've got time [indiscernible].

Let's ask Roy's question because he's going to write about us and if we...

Does he normally ask very tough questions?

He asks very sensible questions.

Yes sir, could you tell us -- introduce yourself, please?

Shaun Chauke from Nedbank. I've got a couple of questions. Kerry, thanks for the presentation on that. Can you explain the split or mix weighting on the diversified operating profit between the different noninsurance stream? And there is and I ask it's going to bode on to my second question. In terms of, obviously, dealerships provide a platform to generate leads. And we've obviously limited optionality on buying more dealership. There might be a limit in terms of reach, even we've got a big reach. I just want to get a sense of what is the percentage of sales in terms of mobility that you generate from dealerships versus other platforms. So that's the second question. And then I'll conclude with my third one in terms of, is there a way for the aftermarket business to leverage from mobility solutions, i.e. if it's possible, if you could provide some examples on that.

Fantastic. Thank you. So who's going to take that one? I'm sure that Kerry wants to take the one, the aftermarket part on those mobility solutions. So who wants to take which question?

Maybe let's just start on the first 2. I know it's great questions. I'm not going to share that level of detail with you, sorry. I know where you're coming from, but no, that would be very much my competition would love for me to tell you exactly where all that's come from. So, no I'm not going to share that with you, sorry. That's on the first question but I think on the third one, we can at least give you an answer. Kerry?

Okay. So the question was on the aftermarket. So I think what we've really done very well is to penetrate the what we would call first tier. So OEM kind of space, in terms of workshops, in terms of parts and also in terms of products. And obviously, what we're looking at next is what we would call the second tier. So as an example, with the service plan, how do you take our parts from our aftermarket parts business and build a service plan with that maybe with a second-tier workshop, et cetera, and creates a whole level of value-added products that are geared towards the second tier. And then, of course, we need to look at our parts themselves because there are opportunities to also build value-added products and services onto the actual parts offering itself. And we're looking at all of that.

Thanks, Kerry. Roy, over to you. Where is that microphone there it is. And then we've got time for one more question after that. So we'll go to you over there, ma'am. Hello, Roy.

Roy Cokayne from Moneyweb. My question is for Kerry as well. Kerry, you mentioned data assets. My understanding of data assets would be personal information. And you also spoke about leveraging data assets. How do you propose to do that without falling foul of the Popia legislation?

So I think what we've always done as a business is we viewed compliance almost as an area where we can gain a competitive advantage. So Popia actually wasn't such a shock to us, and it didn't require any major adjustments in our business. I think those are basic good principles which we had been adopting for a very long time. So although we had to refine some of our consents, et cetera, we did that, but it wasn't a major thing. So we are fully Popia compliant. Remember that our customers want to talk to us because if you bought a Hyundai, you want to talk to Hyundai. You want to understand what the offerings are. You want to understand what's happening with the dealerships. You want to understand what's happening with your warranties. So there's very few customers that actually opt out. So in our world, our opt-in ratio is very, very high. I'll tell you it's north of 90%.

Wow that's pretty good. That's very good. You have another question, Roy? Just that one? All right.

Roy, come on talk to us willingly.

Right. Around the back.

My name is [ Timmy ] from SBG Securities. Just a quick question on your PAT strategy. You mentioned that you're looking to target the rest of Africa. Any idea of which countries are you looking to target?

Great question. Yes. So it always sounds like a fantastic opportunity until we actually go and travel and really be there. So I took this whole team as well, we went to the 4 countries that we're currently in. So currently we are in Kenya, Tanzania, Malawi and Zambia. We are the distributor there of some OEM products we distribute Nissan and [ Aval ] et cetera. The aftermarket opportunity is always there. It's really that last -- sort of that last mile, it's actually very difficult to serve. And despite it almost sounds like a really, really great opportunity to go and serve is actually quite difficult. What we have -- have even started with in -- It started in Kenya and we opened it last in October when we were there in our road show was the aftermarket parts workshops for out-of-warranty vehicles. As you know, a lot of gray imports goes into Africa. So they don't mainly sell a lot of OEM new vehicles, they sell a lot of secondhand vehicles. And that is a part of the business that can obviously grow over time. It's still in its infancy, so not really much to talk about, but certainly something that we explored and we started from Kenya, and we'll probably rolled it out into 1 or 2 of the adjacent countries as well.

Fantastic. And look, I mean, talking about the interest rates in that, I mean, potentially over the next few quarters with the reduction it's going to unlock a lot of value and give future buyers, more confidence in the market. One thing that you haven't touched on is the load shedding and let's pray it continues, that is. But I mentioned that the last previous quarters that load sharing did impact productivity and it does impact the business. Let's hope it stays that way because that will help your businesses as well.

If you look at our business mostly, if you take the dealerships. I mean, we've got enough inverters, we've got generators. Everyone is independent. It's not so much our businesses that impact us, It's our customers. So if you take our major stores, not ours the franchisee, they're small businesses. If they don't have power for more than -- two hours they'll cope, but after they close a shop and go. So a lot of those customers get impacted and if they are impacted they buy less from me. So it's not so much the impact on us...

It's part of the chain,right?

It's part of the chain where our franchisees are impacted because of their size of the business, and they don't buy the workshops don't work, that kind of thing. And it's all the collateral damage that it creates. Of course, on our business.

Confidence of the customers et cetera. Ladies and gentlemen, a big round of applause to Osman, to Ockert, as well as to you Kerry. What we're going to do now is we're going to take a bit of a stretch break but before we do that. Now you'll notice that on your chairs, there's a black box. And inside that black box is a key ring. If you open up the box there is one box that has Motus stamp or Motus sticker inside of the box. Is that your box? Can we see if it's your box? Who has it? Oh wow, there you go. Now the other question I've got to ask is do you work for Motus? Fantastic. All right. Well, congratulations, what's your name? [ Petronilla ], give it a round of applause. 2 days care hire from Europcar. Flights put you on to the lift to the destination of your choice in South Africa. That's a lovely price, give it a round of applause. Okay. Stretch break, I'd like to please urge you to talk about the activations that are happening over here. We'll be back here in 15 minutes. The bathrooms are to your left of this building as you walk out and a special request, ladies and gentlemen. If you go through that showroom floor, there's an SL43 AMG. I'm only taking delivery after today's event. So please don't leave your fingerprints on my car. I beg of you. Thank you. We'll see you back here in 15 minutes. [Break]

Ladies and gentlemen, if I can ask you to please take your seats. Thank you very much. Much appreciate it. And guys, listen to me. Before we start, you've got to go and check out the liquid assist activation because it's a free year that you're getting. And it's really an amazing, amazing service. Anybody seen it yet? Have you -- anybody tried it? All right? You got to do it. It's the most amazing road side assist product because -- and it's free for a year, right? You're just waiting for some more people? Okay, cool. I'm telling him about roadside assist. It's brilliant. It's fantastic. But seriously, roadside assist is actually a very cool piece of technology. And then of course, the Europe car ready to go, because if you sign up today, you get a free days car hire. On the category A group booking or is it category G, right? Ockert just went pale. When I said category G, he panicked for a second there. But no, you get a free days car hire, which is fantastic. We're just waiting for the last few people to come through. And it's so interesting to talk to a couple of my friends who are from the institutions that we had that invest and talk about all the zeros that you were talking about earlier. But a lot of optimism, I'm hearing from the investors behind the group. So it's fantastic to see a group that's so diversified. They've got some interesting business interests that I didn't even know existed actually in the U.K. and moving stuff around. So lots of future great prospects. Right. Ladies and gentlemen, if I can ask you guys to come and join us and take a seat I hope nobody put their fingerprints on my AMG, it's over there, ZAR 3 million for that car. That's what it costs, right? I mean the amount of money, there's a G-wagon over there that I don't know much the G-wagon is going for right now, enough money. Yes. Gosh, extraordinary that kind of money exists in our country, which is fantastic. There we go. Great. I think most of us are back here. Thank you very much. Thank you for being back on time. Having your drinks. We've got some more canapes and some more snacks after this very short second presentation of the afternoon. But before we continue, ladies and gentlemen, I want you all just to sit where you are, close your eyes for a second. Just everybody close their eyes and imagine the future, please close your eyes. So my eyes are open and you're not obeying my rules here. Thank you. All right. Now close your eyes, take a deep breath. And in your minds, count down from 5 down to 0. Take a deep breath. [Presentation]

Ladies and gentlemen, how inspirational was that. Hey, at least it makes me emotional and it lifts the spirit, a beautiful, beautiful look at the bridging the world's technology and human collaboration. Ladies and gentlemen, let's hear please for Puno Selesho. The extraordinary poet, entrepreneur and performer. That was absolutely incredible. Thank you very, very much, Puno. Thank you. Wow, I'm breathless now. I don't know about you guys, but if you're feeling a little bit sluggish in the afternoon, you know that 4:00 time in the afternoon. Well, that certainly lifted my spirits, and it looks like it's lifted yours too. Let's move on with our program, and I'd like to invite back on stage, Kerry Cassel, who is, as you know, the CEO of Mobility, just to talk about, and she touched on a few of the points earlier, how does Motus innovate? And how does Motus go about to innovating and where are they going with this innovation? Kerry, over to you. Thank you.

Thank you again. So I thought to give a little bit of context the rest of today, it would be best if I first looked back and gave you a bit of the history behind our innovation journey and how we got to today, which is the culmination of quite a few years of work -- sorry, to start off, I'm just going to give you a brief video, which will give you an overview of where we are. [Presentation]

Going back to the beginning of the journey, it was 2018 and there was a lot going on for Motus at that time. We were unbundling from Imperial, and we were listing on the Johannesburg Stock Exchange. And so we had this conundrum where we had to kind of figure out what was it in our recipe that worked for us in the past. How do we hold on to that? And how do we mix it up with some fresh thinking and some new ideas. And at that time, Osman was very vocal in the fact that he wanted innovation to be a key part of our strategy and our values and the way that we worked going forward. We have to build tomorrow's products and services today. I can't tell you how many times we all heard that. And as part of our rebrand and our journey in that regard. Out of that came this Motus Keystone, which is the red triangle that you see there. And that encapsulates how we define ourselves. And you will see that one of those 3 pillars of the keystone is that we are innovative. And I guess the conundrum for all of us at that time was, well, how do you work in a listed corporate environment and still create an innovative culture? Those two together is not an easy fit, so we decided, well, we better go do some homework. And we looked at what was happening in the market, and we saw that there was a lot about ridesharing. There was a lot about digital marketing. There was a lot about what we call NEVs New Energy Vehicles. There was a lot about dealer platforms. And when we explore this and researched it in a bit more detail, we saw that a lot of this innovation and disruption was happening in San Francisco or maybe we just wanted to go to San Francisco. So we were in to San Francisco. We put together a group and off we went and we designed a tour to Silicon Valley that was purely automotive focused, and we had a look at everything that was happening in that space. And as part of that trip, we went to a place called plug-and-play which is basically like an innovation accelerator tech start-up kind of place. And a lot of the big things that we see today in terms of tech actually came out of there. So it was actually the first home of Google also coming out of their PayPal, Dropbox, et cetera. And they have option for corporates where you can become a member. So we became a member. And we find ourselves now part of this whole venture capitalists community or economy. And they would call us into sessions where they would bring start-ups for funding, et cetera. We never funded any of them. But we got to see a lot of what was going on. And I guess the greatest value that we took out of this was we got to meet a lot of other South African corporates that were also members of plug-and-play and also on the same innovation journey as us. And we've started to find ourselves drawn more and more into this innovation community. And as we went on that journey, we understood that we really needed some sort of structure or process or methodology on how we would innovate going forward. And so maybe we wanted to drink beer, but maybe we wanted to go to Berlin and off we went. And we went to the exponential University in Berlin. And there, we learned about a process called design thinking. And really, you take a concept into a design sprint. And by the time you get to the end of the sprint, which is sort of typically an 8-day process. At the end of that sprint, you actually have a prototype. And that formed the basis of what you're going to see throughout today, something that we call the Innovation Accelerator, which is basically the sort of you can call it an innovation funnel or a process that our concepts go through. Through all of this, the one concept that started coming through very, very clearly, which seem to be the answer to our original question, which is how do you innovate in a corporate listed environment? Was this concept called entrepreneurship? So what is entrepreneurship? It's a system that allows an employee to act like an entrepreneur within a company or an organization. And it's awesome for a number of reasons. Firstly, it fosters a culture of innovation. Secondly, and perhaps what I find the most powerful it creates a culture that's very inclusive around the innovation process. It empowers our employees to take calculated risks. It really is okay to fail. And that's like such a counterintuitive thing to teach your people when it's always been about success but I think we're getting there. Through empowering your people, it really attracts top talent. It enables the organization to challenge the status quo, and it enables us also to take new products and services to market. There are, however, barriers to entrepreneurship. So there is a lady named Melissa Kennedy, who does a lot of tech talks on entrepreneurship and she did one on the barriers to entrepreneurship that I thought I'd just summarize today. And she says, "Firstly, we tracked. We tracked in the investment that we've made in our current way of doing things. We tracked in our current processes. We tracked in our current way of thinking. The other thing that's a barrier is our understanding of innovation. We have this concept in our minds that it must be absolutely mind-blowing. And if it's not absolutely mind blowing, then it's not worthwhile, and that really isn't true. Because not good idea will be a unicorn and not every unicorn will be a long-term good idea. And then the third barrier that she identified is the belief that someone risked it all. Hence, the guy sitting in the garage, who probably gave up his job, mortgaged his house and worked out of his garage, sweat blood and tears for 5 years, but it doesn't necessarily have to be like that because some of the really best ideas come out of that environment being the corporate office. And really, I think the thing that sticks with me is the real definition of innovation equals change that matters and it can be a lot of small changes that ultimately make a very big difference. So our solution, when we could finally define it with something called MX or Motus Exponential. And Motus Exponential was basically a 6-point plan. Firstly, to create a culture of innovation within Motus because if your people don't believe that you're innovative, if your people don't believe that it's okay to take risks, if your people don't believe that it's okay to learn and fail, then you won't be able to innovate. And we also wanted to establish a brand for innovation. We wanted to make training available to our people on a voluntary basis. where they could learn about all the latest developments in tech, digital and the innovation space. We wanted to host events to make sure that everyone was up to date and current. And we wanted a platform this platform that we got, we found out of the U.S., it's something called Idea Scale. It's phenomenal because it allows our employees to go and log an idea anyone who's part of our Motus Exponential community who thinks that they've got a good idea, can go and log it. And the community then votes for the idea and the most popular ideas rise to the top and go into an innovation sprint process, hence, why I talk about the inclusivity of the innovation approach within Motus. And then we wanted to measure an award engagement in innovation. We've done that very successfully where we actually have a scorecard now where there's points for going to events, there's point for doing training, there's points for participating in design, sprints, et cetera. So we have a very good sense of where our real innovators in Motus are actually sitting. And when you've got 20,000 people, that's a nice insight to have. What makes us unique? I think I've touched on the fact that it's a top-down approach as well as a bottom-up. Top-down because sometimes as an exec, we sit and we come up with business problems, and we put them into the design sprint process. And then other times, employees will log ideas on idea scale, and it will come up into the design sprint process. It's centralized as well as decentralized. It's a hybrid of both. And that innovation happens within the business because then the business really owns it and drives it, but it's supported by 5 dedicated entrepreneurs at the center. Their sole KPI is to drive innovation within Motus. Because of the way we run our innovation and because of the Idea Scale platform, it ensures that there's a diverse range of ideas coming through all the time. And it encourages the culture of employee experimentation and empowerment. We've had a few wins on our journey. First one is Motus Exponential now has 4,000 active members which I think is a really great accomplishment for any corporate. And we fully accept the fact that not everyone in Motus is going to be an innovator, not everyone in Motus is going to be interested in innovation, and we're very happy that there's still a lot of people out there selling cars. We also won for our Motus Exponential program. So actually, the way we've developed our innovation process in Motus, we won quite a prestigious award that was run out of Austria, Europe, where we came 3rd in the jobs to be done awards, and we were in the company of Philips and [ Lebo, ] who came first and second. So I think that's quite a feather in the team's cap. We were very proud of them with that. And then we run a survey with our people every year to understand how they perceive innovation in Motus. And we're very pleased that this year 84% of our people said that we have increased our focus on innovation in the last year, and that's up from 75% in the previous year. But I think that if you had run this kind of a survey 15 years ago, the score would have been probably 0. And we developed our innovation accelerator that I spoke about, which is basically the design thinking process, almost distilled into a funnel. Now it has 3 phases before a concept is commercialized. The first phase is the discovery phase where we understand what is the customer need. And I can tell you that we've realized that this has to be very evidence based and has to be researched very, very carefully because what customers tell you they want is actually not what our customers want at all. So that is a point that we've proven time and time and time again. Then -- so I understand what does the customer want? Validation phase. Do we have a solution for that want or need? And then the third phase is, if we do have a solution, can we scale it, create value for the customer and value for Motus. Only if it goes through that entire process, does it get to the phase where it is commercialized. What's interesting is that we've put 52 concepts through this process so far. And Osman said, I must mention that, of course, we did have downtime due to COVID. But we've put 52 concepts through. 30 of those concepts did not make it through at all, 15 are still in process and 7 have been commercialized. Of the 30 that didn't make it through. We've created a library. And there, we store all of our research and our learnings for each of our projects that we didn't take through to commercialization. And just because we didn't take it through to commercialization now does that we are not going to right? Because it might just mean that the market is not ready. So I think it's been quite awesome to go through that process. And then as we go through today, you're going to see that we've selected 6 of these to show you today, 4 pods, 2 activations. You've heard about Liquid Assist. And hopefully, you're going to hear a lot more about the others. [ I won't steal renewals tender. ] But 3 of these ideas that you're going to see are in the scale phase, which means very, very early stages of development. 3 have been launched are mature and already in the market. So I hope you enjoy the rest of the day. Thank you.

Thank you so much, Kerry. I'll grab that. Thank you very, very much. So as you can see that the amount of effort and time that is spent on innovation is starting to bear those fruits, as you will hear about that in the pods and the experiences that we have shown you today and the other stuffs that in the pipeline going forward into the future. So I guess my question is, are you an automotive company or are you guys evolving into a technology company, right? Because that's the one question I asked one of the CEOs of one of the big banks, and they said, no, we're a technology company that's playing in the finance space. So I don't know what it is, but whatever you guys are doing, it looks like a very, very exciting journey that you're on. Right. So thank you very, very much. Let's give Kerry a round of applaud please. All right. Let's move to our next speaker, and Rhenier de Beer, he's the Head of Innovation at Motus, and is a visionary leader at the Mobility Solutions part of Motus. He's been in this industry for over 19 years, 14 of those that are at a senior level. Understanding innovation. Please join me, ladies and gentlemen, in welcoming the Head of Innovation at Motus, Rhenier de Beer.

Thank you, Aki, for that warm introduction. Good afternoon, everyone. I really believe I've got the coolest job in the world, along with my team, I head up Motus Exponential. And every day, we wake up excited to innovate and see what products and services we can create for our customers. So for the rest of the day, I'm going to take you on an exciting journey, where we are actually going to show you what we've done in the innovation space. Imagine a world where roadside assistance happens as easy as e-hailing a taxi or selecting the next car to buy is as simple as swiping left or right, like on some of those dating apps that you may know. And getting a fair price for your trading and applying for finance is done digitally. All from the comfort of your home without any paperwork or a visit to the dealer. And if you own an older vehicle that is outside the manufacturer warranty, you can order your parts just like your groceries and get them delivered. Join me as we embark on an exciting journey. Imagine a busting City like Johannesburg, with thousands of people daily rely on mobility solutions, whether through public transport, e-hailing services, car rental or even their own cars. Speaking of car rental, can I see by a show of hands from the audience, who flew into our event this afternoon? Anyone? Yes. So I imagine some of you chose car rental as your preferred mobility solution. And today, you'll introduced to ready to go from Europcar. If you don't know what I'm talking about, you can engage with the activation team at the stand after my presentation to learn more. Our journey today begins with Nakuanda, a busy mom of 3, who faces a familiar dilemma. Her car won't start. Fortunately for her, she recently downloaded the liquid assist app. And within minutes a tow truck is on its way to help her out. Nakuanda can see in real time the tow trucks location and estimated time of arrival. Nakuanda's vehicle is towed to the nearest Motus dealership where one of our skilled technicians diagnoses a faulty battery. Her battery is promptly replaced under her liquid capital maintenance plan. But Nakuanda's story doesn't end here. Fearing her car trouble's as earlier in the day and needing a bigger car for the kids, she decides to buy another car. Our move app comes in handy, quickly shortlisting 10 vehicles for her, determined by her AI-supported preferences and our years of car buying data. In the same time, it takes her to order a cappuccino. Nakuanda selects the top 3 preferences and eagerly awaits the Motus dealer's response. Speaking of dealers, Nakuanda also uses her innovative trading tool. She can now get a guaranteed price for an existing car from anywhere and her omnichannel digital dealer solution allows her to complete an end-to-end finance application or online. Our journey continues across town where we meet Jodi, the Chassis Mechanic. Jodi uses our clutch app to identify the right service parts for a customer's vehicle. Our existing suburban spare stop close to the township ensures swift free dispatch supporting Jodi and other local mechanics. At Motus, our innovations are driven by the unmet need of car owners and buyers. Today, you'll experience our digital car buying solution that enables an omnichannel experience that lets customers effortlessly switch between the online and off-line stages of the car buying journey. While delivery at the dealer is still the preferred option, our focus remains on the right demand for digital solutions. There's no doubt from the examples that I've shared that our industry and the behaviors of our customers will continue to evolve. Some customers will experience a flat tire or a mechanical failure, just like Nakuanda, and they will need roadside assistance. The owners of those vehicles will need to service their cars, and our Mobility Solutions business will continue to offer value-added products and services to the owners of those cars. And for owners of vehicles outside the manufacturer warranty, our aftermarket parts business will continue to sell aftermarket parts. Today, we share just the glimpse of how we are digitizing the car buying and ownership experience, but this is just the beginning. Our reach extends across the Motus Group with a pipeline full of exciting concepts being researched, conceptualized and tested waiting to transform our business and the experience of our customers. Through innovation, we future-proof motors, and we support the sustainability of our business. We know the school levers and 20-somethings of today will be the digitally savvy car buys in the next couple of years. They will need mobility solutions and they will expect a seamless digital experience. At Motus, we call it mobility for good, and we are ready to serve them. As we continue our journey, the first part that you will be introduced to is clutch, that is our digital solution for the chassis mechanic. Our second part experience is our move car recommender tool. Thirdly, you'll have the opportunity to also experience our trade-in solution. And lastly, we will introduce you to our digital dealer solutions, which allows end-to-end finance application process from anywhere. As previously mentioned, we also have 2 activation stands where you can talk to the team at Europcar with the ready-to-go solution. And lastly, you also have the opportunity to interact in the part areas with the team from Liquid Assist, where you can download the Liquid Assist app and receive free 12 months roadside assistance when you register. So ladies and gentlemen, this ends the proceedings on the main stage. We will now proceed and continue our journey of innovation with the port experiences, which is at the far end of the dealership. You will make your way through these doors on the left-hand side. Please note on your name tags, there's a number. So we've divided the group this afternoon into 4 groups. Each group will have a chaperone. So there's number 1 to 4. As you move through these doors, you'll meet the chaperones. They will have Lollipop stands that designate your group, and they will ensure that you get to interact at each part. We are going to go through those sessions quite quickly. They will last about 8 to 10 minutes, and you'll have the opportunity to experience all 4 pods in that time. Please also note that we will be serving food and drinks, so we are going to keep the interactions quite light. And then Aki, if I can just ask you to hand me that headset there on the podium. So we've also given each member this afternoon attendee a noise canceling headset which you will switch on at the -- with this button at the bottom. They are color coded for the pods. So as you move between the 4 pods, you will just press this button and the color will change, and you will see it's color coded. So it's very straightforward and simple. They're noise canceling, so you can hear each presenter quite clearly. Thank you very much.

Thank you very, very much. Thank you, Rhenier. And just from a privacy point of view, there will be -- there's a photographer taking photographs if you don't wish to be included in any of the photographs, please do let us know, and we'll make sure that you're not going to be in any of the photograph. Some of the photographs might appear on the Motus website just indicating how proceedings went today. But thank you very much. I'd like you to all give our speakers a big warm round of applause, please. And I think that there is no doubt in my mind, as an outsider that just listening to where Motus Group is going in the future and listening to the innovation and the technologies that they're deploying and the diversity of the business across various continents that this is a very solid business moving in the right direction, and I'd like to wish you all very well and good luck to you as well, Ockert in your new role as well. Thank you very much, ladies and gentlemen.