LiquidCapital in Perspective

Transcription

1 LiquidCapital in Perspective 1

2 Agenda - LiquidCapital corporate video - Our business in quantum - What we do - Key financial indicators - Questions 2

3 Business in quantum 3

4 Our Business - We offer a broad range of financial products and services to the motor industry, corporate customers, leasing ventures and the South African motoring public - We are a registered Financial Services Provider - We are a level 3 BEE contributor 4

5 Our Business in Quantum - We are the largest provider of branded financial services solutions in the motor industry - We are believed to be the 2nd largest provider of contract maintenance in the country - We provide a range of vehicle products and services for over 13 international motor brands represented in South Africa 5

6 Our Business in Quantum - We have over 560,000 active customers on our books - We manage over 1,072,000 policies (active and future active) - We administer and manage a fleet of over 11,000 vehicles - We receive and make more than 110,000 in and outbound calls per month - We also make more than 100,000 customer satisfaction research calls per month - We process more than 35,000 per month amounting to R55 million contract maintenance authorizations 6

7 Our Credo 7

8 What we do? 8

9 The Motor Industry Financial Services Model 9

10 Finance Strategy! Alliances - MFC and WesBank! Liquid Vehicle Finance (a joint initiative between LiquidCapital and WesBank) launched 2009! Branded finance solutions Finance and Insurance Management Solutions (FAIMS)! Over 180 F&I Business Managers! Solution tailored for over 350 dealer outlets 10

11 Value added vehicle products - Contract maintenance - Service Plans and Maintenance Plans - Vehicle profiling & plan pricing - Quoting calculator - Authorisations/Claims - Warranties - Manufacturer and extended warranties - Other insurance products - Paint protection, deposit cover & gap cover - Roadside assistance & accident management - Believed to be the 2 nd largest provider in SA - Tracking devices and on board telematics - Relationships with numerous major players 11

12 Product White Labeling 12

13 Branded Fulfilment Branded fulfilment founda0on to launch customer communica0on journey Hyundai Kia LiquidCapital Mitsubishi Triumph Kawasaki 13

14 Insurance - Insurance aggregator business - Support all AMH dealerships - Support all Imperial Automotive Retail dealerships - Sell direct to consumer - Comprehensive insurance quotes - On vehicle, motorcycle & household - Panel of insurance providers - Tracking devices offered - Integration into accident management process 14

15 Accident Management Customer obtains insurance through Liquid Insurance Quotes Customer has accident Tracking device give notification of accident Approved panel beaters only use OEM parts Tow truck delivers vehicle to our approved panel beater Liquid Roadside dispatch tow truck to collect vehicle 15

16 Customer Life Cycle Retention / churn campaigns Customer takes delivery of vehicle Sales CSI survey and data hygiene Customer relationship communication Telesales initiatives After sales surveys Service and maintenance plan authorizations 16

17 One View Of Customer - Advanced data warehousing and business intelligence solu0on, ensure - - Enhanced data quality of customer and vehicle informa0on - Enhanced business insight and customer centricity - Ability to profile and predict behaviour of motoring customers Automated Direct Marketing Engine 17

18 Data Warehouse Business intelligence - Vehicle, customer & fleet behaviour - Provide enhanced ability for analysis and repor0ng Gender/Age Customer Age Gender Marital Status/Gender 18

19 Customer Journey 19

20 Customer Experience Management - Exceeding customer expectaeons CUSTOMER COMMUNICATION - ImplemenEng tomorrow s technology via - Responsive website & designs - Customer apps - Automated customer communicaeon PC WEBSITE MOBILE APP TABLET MOBILE 20

21 Responsive Design Website - Responsive CSS Framework - Multiple browser and device compatibility - Sophisticated coding employed to support cross device functionality 21

22 Google Partnership - Relationship with Google, which allow - testing various beta products - as soon as they are available - Dedicated test account in which we are currently testing: - different display targeting combinations - remarketing lists for search ads 22

23 Website Tracking - Monitoring of - Active customers - Website activity - Demographics (age/gender) 23

24 Analytics Tracking - Website visitors by geographic area 24

25 Automation - Tracking - Opening Rates - Link Tracking via Heat maps 25

26 Automation Inbox analytics: Engagement Rates - Read - Skimmed - Glanced/ Deleted Inbox analytics: Clients used to read s 26

27 Mobile app - Customer raise request for roadside assistance through app - App automatically identifies the customer s geo location and communicates to call centre - Various services offered - Roadside services - Route map assistance - Accident logger 27

28 CSI Research - Customer satisfaction sales, service and data hygiene - Call centre specialising in - Sales CSI - Aftersales CSI - Parts surveys - Other ad hoc surveys - CATI (by NIPO) Computer Assisted Telephonic Interviewing software used similar platform used as leading research houses (i.e. Markinor & IPSOS) 28

29 Other Support Services - Customer care - Website hosting and support - Marketing material - Training - Compliance, validations & quality control 29

30 Fleet Management Products & services offered: - Leasing & rentals - Fines management - Vehicle licensing & registration - Accident management - Roadside assistance - Managed maintenance - General vehicle maintenance, tyres, glass, etc 30

31 Fleet Management Ability to manage diverse fleet ranging from: - Passenger vehicles - Light commercial vehicles - Heavy commercial vehicles - Forklifts - Armoured vehicles 31

32 Fleet Management - Clients Some of our clients: 32

33 Our Roadmap MFC JV Service & Maintenance Plans Roadside Assistance Liquid Vehicle Finance Ariva Direct Marketing CSI 360PLUS Demo Plan LiquidCover Telesales IFM

34 Key financial indicators 34

35 Funds Under Management FUNDS H1 Funds under management - LiquidCapital Base +29% +45% +37%* +26% +7% Funds under management Cell Captive (after dividends) Base +203% +2% +25% - +10% GROWTH Base +38.4% +37.0% +36.0% +22.5% +7.0% * Change in estimate in respect of revenue recognition 35

36 Forex Exposure - Only a portion of the funds under management are exposed to currency fluctuations - Forex exposure is managed through: - Changes to assumptions in the actuarial valuation model - Re-pricing of plans - Ongoing negotiations around parts pricing 36

37 Revenue Income Contribution - Revenue analysis for the half year ended Dec % 4% 2% 1% 3% 42% 21% 19% Fund revenue Fleet Services Motor Finance Alliances Cell Captive Liquid Direct Liquid Cover Liquid CSI Tracking Devices 37

38 Finance Alliance Books BOOKS 2009 R m 2010 R m 2011 R m 2012 R m 2013 R m 2014 H1 R m TOTAL GROWTH -18% +41% +41% +30% +15% R ,00 R ,00 R ,00 R ,00 R ,00 R (YTD Dec) 38

39 Telesales - Total Monthly Telesales increased by 303% over last 5 years Dec-2009 Jun-2010 Dec-2010 Jun-2011 Dec-2011 Jun-2012 Dec-2012 Jun-2013 Dec-2013 Total Monthly Sales Linear (Total Monthly Sales) 39

40 Direct Marketing - Growth in direct marketing Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Leads Sales Actual 40

41 AMH Dealership Sales Total AMH vehicle sales vs Total value added product (VAP) sales in AMH dealerships Jan-2009 Jul-2009 Jan-2010 Jul-2010 Jan-2011 Jul-2011 Jan-2012 Jul-2012 Jan-2013 Jul-2013 Jan-2014 Total Vehicle Sales Total VAP Sales 41

42 Independent Dealership Sales Total value added product (VAP) sales in Independent dealerships - Focus: Service & Maintenance Plans, Extended Warranties Jan-2010 Jul-2010 Jan-2011 Jul-2011 Jan-2012 Jul-2012 Jan-2013 Jul-2013 Jan-2014 Total VAP Sales Linear (Total VAP Sales) 42

43 Sustainability Of Earnings Average contract duration increased from 2.92 years to 4.25 years Average term of vehicle on book increased from 15 months to 21 months (last 7 years) Months Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec Average contract duration Average age of parc * Calculated on Service & Maintenance Plans 43

44 Sustainability Begins at Home - Outstanding customer service is central to our business - Our employees are the key differentiator in achieving superior business results - LiquidCapital invest in training and upskilling our people - Employee wellness program - LiquidCapital ensures compliance with all legislative requirements through: - customer call validation - quarterly sales script reviews - daily live auditing on all sales calls (BYC) - annual compliance reports submitted to FSB Results - only 1 Ombud complaint in the past 2 years - No negative findings or fines levied against LiquidCapital ever 44

45 BCG Matrix - Products Market Growth Rate Low High Service Plan Plus Tyre Maintenance Plan Tyre & Rim Warranty PlaEnum Plus Roadside Assistance Service and Maintenance Plans Warranty Low Market Share High 45

46 BCG Matrix - Channel Direct MarkeEng Market Growth Rate Low High Branded Independent Dealer floor 360PLUS Non- Motor Financial Services Website AMH Dealer Floor Telesales Pre- paid (wholesale) Low Market Share High 46

47 Conclusion - Business well positioned for growth - Diversification of revenue streams - Development of new sales channels - Investment in technology, innovation and entrepreneurship - Aggressive management of business risks - Leveraging efficiencies throughout the business and the Group 47

48 Thank you 48