DIeteren May 2004 Jean-Pierre Bizet Group Executive Vice President Benoît Ghiot Group Financial...

D’Ieteren

May 2004

Jean-Pierre BizetGroup Executive Vice President

Benoît GhiotGroup Financial Manager

Group Highlights

D’Ieteren’s portfolio of activities

Automobile Distribution in Belgium

Car Rental

Belron

• #1 vehicle glass repair & replacement (VGRR) group worldwide

• 27 countries - 1,000 stations- 3,500 mobile units

D’Ieteren Auto

• #1 Car distributor in Belgium

• 350 independent dealers

and 12 fully-owned dealers

• Long term car rental : D’Ieteren Lease

Avis Europe

• # 1 Car rental group outside Americas

• more than 110 countries - 4,000 locations

Vehicle Glass

D’Ieteren s.a.

D’Ieteren family

D’Ieteren Auto

CobepaFree float

Euronext Brussels

50.4%7.1%41..5 %

100%

Own shares1%

Avis Europe

Free floatLondon S.E.

59,6%40,4%

Avis Europe

Dicobel

Belron

Minority shareholders

70%

81.7%

18.3%

30%

Group Highlights

Group Highlights

32%

24%

44%

Net current earnings 1, group’s share 2003

29%

26%

45%

Revenue 2003EUR 4.1 billion

32%

48%

20%

EBITA 2003EUR 257 m

Avis Europe D’Ieteren Auto Belron

1 before amortisation of consolidation differences and extraordinary results

Net current earnings before minorities1

EUR 121 m

33%

37%

30%

EUR 84 m

0

500

1000

1500

2000

2500

3000

3500

4000

4500

2003 2003

EU

R m

illio

n

Segment contribution to Group revenue

Consolidated Group revenue :EUR 3.029,5 m (-1.2%)

Total segment revenues :EUR 4.090,6 m (+1.0%)

D’Ieteren AutoEUR 1.860,1 m

Avis EuropeEUR 1.169,4 m

D’Ieteren AutoEUR 1.860,1 m

Avis EuropeEUR 1.169,4 m

Fully consolidated

Fully consolidated

Equity methodBelron

EUR 1.061,1 m

D’Ieteren

0

50

100

150

200

250

300

2003 2003

EU

R m

illi

on

Segment contribution to Group EBITA

Consolidated Group EBITA :EUR 173.7 m (-27.4%)

Total segment EBITA :EUR 256.6 m (-18.2%)

D’Ieteren AutoEUR 50.9 m

Avis EuropeEUR 122.8 m

BelronEUR 82.9 m

D’Ieteren AutoEUR 50.9 m

Avis EuropeEUR 122.8 m

Fully consolidated

Fully consolidated

Equity method

D’Ieteren

Consolidated current result after taxes 1 :

EUR 83.9 m, 20.8% lower

Automobile distribution 2 EUR 36.9 million

+ 3.7%

Car rentalEUR 27.1 million

- 50.4%

Vehicle glass 2

EUR 19.9 million+ 26.8%

1 Share of the group, excluding amortisation of consolidation differences 2 After allocation of a financial result linked to D’Ieteren’s investment in vehicle glass

Segment contribution to current result after taxes 1

D’Ieteren shareholding : 59.60%

D’Ieteren shareholding : 56.65%

D’Ieteren

2004 Outlook

“Based on the outlook for the three activities,

FY 2004 current result after taxes1, group’s share,

is expected to be slightly higher than in FY 2003.”

1 Before amortisation of consolidation differences

D’Ieteren

Automobile Distribution with D’Ieteren Auto

Agenda

359396

466474

462

375

397

452

515489

387

489468 459

17,917,7

18.0

19,819,6

20,1

19,8

20,5

19,8

19,6

17,918.0

17,4

16,3

0

100

200

300

400

500

600

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

10

12

14

16

18

20

22

24

26

28

30

Market of new cars & D’Ieteren’s market share

D’Ieteren AutoM

arke

t (in

thou

sand

of u

nits

) D’Ieteren

’s marekt sh

are (%)

Share of D’Ieteren Auto in Belgian new car registrations

Volkswagen

Audi

Seat

Skoda

Porsche

FY 2003 FY 2002

10.0%

4.3%

2.2%

1.4%

0.1%

D’Ieteren Auto total 18.0%

9.9%

4.4%

2.0%

1.4%

0.1%

17.8%

New car registrations H1 2003

9.6%

4.3%

1.8%

1.3%

0.1%

17.1%

H2 2003

10.3%

4.4%

2.3%

1.5%

0.1%

18.6%

New car market (in units) 467,569458,796 196,773262,023

D’Ieteren Auto

EUR million 2003 2002 % change

New vehicles sold (units) 89,968 95,900 - 6.2%

Revenue 1,860.1 1,877.6 - 0.9%

Operating profit (EBITA) 50.9 52.8 - 3.6%

EBITA margin 2.7% 2.8%

Net financial result 1 - 4.3 - 8.8

Net extraordinary result 8.8 - -

Profit before taxes 55.4 44.0 + 25.9%

Current result after taxes1,2, g.s. 36.9 35.6 + 3.7%

Current EPS (EUR) 1,2, g.s. 6.6 6.4 + 3.7%

Results headlines

1 After allocation of a financial result after taxes associated with D’Ieteren’s investment in the vehicle glass segment - see slide “Impact of Dicobel in D’Ieteren accounts” in vehicle glass section2 Share of the group

D’Ieteren Auto

FY 2003 H2 2003 H1 2003

New vehicles -1.6% +8.3% -9.4%

Used vehicles -7.1% +12.6% -23.0%

Parts & Service -0.8% +0.4% -1.8%

Garages +3.0% +3.1% +3.0%

D’Ieteren Lease +9.8% +13.3% +6.1%D’Ieteren Sport +9.1% +5.9% +10.8%

D’Ieteren Auto -0.9% +8.8% -8.7%

• Low performance of H1 nearly offset by sales increase of H2

• Decrease of new and used vehicles mitigated by more stable other activities

Revenue evolution

Revenue : quasi flat, overall

Revenue breakdown by activity

2%3%5%

10%

8%

72%

D’Ieteren Auto

Operating profit (EBITA)

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

EBITA 2002 Sales effect Margin/Mix Other costs SG & A EBITA 2003

EU

R m

illio

n

52.8 - 3.0

+ 9.2 - 11.2

50.9+ 3.1

Savings in overheads

Increase of marketing costs and fleet depreciation

D’Ieteren Auto

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

Net result

35.6 - 1.9+ 4.5 - 0.9 - 0.2 - 0.2 36.9

+ 8.8 + 1.5 47.2

Favourable impact of :·interest rates·valuation of own shares

·Provision reversal IFRS : +10.9

·Retail restructuration : - 5.5·Others : + 3.4

D’Ieteren Auto

Networks development

• New contrats concluded with dealers in line with European distribution regulation and the specialisation by make

Achievements in 2003

D’Ieteren Brussels agencies

• Launch of a competitiveness improvement programme to improve profitability, service quality and to split the VW and Audi brands

• New investment : AUDI CENTER in Zaventem

D’Ieteren Auto

NEW AUDI CENTER

FY 2004 Registrations

• 470,000 new car registrations expected, + 3%

• Expected D’Ieteren share close to 19%

Revenue

• Expected increase of around 10% in new vehicles sales

• New product launches : VW Caddy (Apr 04), Audi A6 (May 04), Seat Altea (Sept 04), Skoda Octavia (Sept 04), Audi A3 5 doors (Sept 04), Seat Toledo (Nov 04), VW Passat (Jan 05)

Costs

• High marketing costs & promotional actions in a still competitive environment

• Continuing intensive focus on overheads

Outlook for 2004

D’Ieteren Auto

Agenda

Short Term Car Rental

Avis EAMEA

Corporately-owned operations• Some 5 million rentals annually• 14 countries, c.1750 locations• Presence at the 75 principal European airports• Fleet purchases of

c.EUR 2.5 billion per year

Licensee network• 93 countries – c.1250 locations

Budget EMEA

• 65 countries

• Over 1,000 locations predominately franchisee

2003 Results overview

Car Rental with

•Overall performance significantly impacted by Iraq conflict and weaker pricing environment

•Current result, in line with guidance given in 2003

•Overall volume and yield improvement in H2

•Acquisition and integration of Budget and French licensee

•Strong control of costs and focus on margin improvement projects

•Significant extraordinary charges primarily following exit from Centrus

EUR million 2003 2002 % change

Revenue 1,169.4 1,189.2 - 1.7%

Operating profit (EBITA) 122.8 186.5 - 34.2%

EBITA margin 10.5% 15.7%

Net financial result 1 - 62.8 - 63.1

Net extraordinary result - 102.4 - 16.4

Result before taxes - 73.3 76.9

Current result after taxes 1, g.s. 27.1 54.6 - 50.4%

Current EPS (EUR) 1, g.s. 4.8 9.8 - 50.4%

2003 Results headlines

Note: the average shareholding used for the consolidation of Avis Europe is 59.60% compared with 56.78% in 2002.

1 Before amortisation of consolidation differences

Car Rental with

Underlying margin movement

Car Rental with

Revenue Operating profit

Operatingmargin %

2002

Revenue

- Volume up 3.4%

- Revenue per day down 4.8%

Cost- Inflation

- Utilisation

- Productivity

- Projects

2003 underlying

EUR million

1,154

40

- 57

1,137

189

16

- 48

- 334

9

- 2

135

16.3

0.8

- 3.4

- 2.9

0.4

0.8

- 0.2

11.9

Utilisation

Util

isat

ion

%

56

60

64

66

68

70

62

58

68.568.1

68.7

200

220

240

260

280

300

2001 2002 2003

Fle

et c

ost p

er c

ar m

th E

UR

Cost

Key Operating trends

Car Rental with

Includes French licensee acquisition

Utilisation up 0.9% Productivity up 3.3%

30

35

40

45

50

2001 2002 2003

Sta

ff c

ost

pe

r re

nta

l EU

R

Cost Productivity

500

550

600

650

700

750

800

850

Re

nta

ls p

er

FT

E

817.9 804.0830.3

Fleet Staff

31.8 38.5 70.3

- 14.0 14.0

13.8 - 13.8

- 4.4 4.4

- - 7.2 - 7.2

0.3 6.8 7.1

45.9 56.5 102.4

Net extraordinary charge

Car Rental with

Centrus

Software projectImpairment on earlier acquisitions (Holland, Münster)

Budget

VAT repayment incl. interest

Other

Consolidationdifferences

Other TotalEUR million

Net extraordinary charge before taxes

Tax impact - 9.9

Net extraordinary charge after taxes 92.5

Share of D’Ieteren (59.60%) 55.1

Car Rental with

• Optimisation of yield per car month

– Weekly pricing review

– Same process in each country

– Yield management tools

– Local empowerment

• Development of internet channel

– Net yield enhanced through lower distribution cost

– Investment in improved functionality and on-line marketing

– Year-on-year growth of 62%

– Internet now 14% of reservations; UK 25%

– Corporate customer initiatives with share benefits

Yield management

• Finance centralisation– Shared service center opened in Budapest– Pilots in Germany and Belgium– European roll-out complete 2005

• IT restructuring

– Project to reduce IT support cost and increase flexibility– Pan-European agreement with Unysis to outsource infrastructure and support– Implementation complete end 2005

Car Rental with

Investment for margin improvement

Car Rental with

EUR 78 m spend over 4 years

2003 2004 2005 2006

Exceptional costs Capital Expenditure

EU

R m

illio

n

Investment for 1% point margin improvement by 2006

2004 Outlook

Car Rental with

• No significant recovery in demand

• Yield environment remains competitive

• Refocused on core rental business

• Investment for future growth and development

• Budget RAC turnaround taking longer; however, broadly flat

operating performance expected in the rest of the Group

Vehicle Glass with Belron

Agenda

Business summary

• The world’s largest specialist vehicle glass repair and replacement (VGRR) company – operating in 27 countries, across 4 continents

• No. 1 specialist in all its markets

• Own internal distribution operations to support purchasing, warehousing and delivery

• Growing geographic coverage - 15 new markets since 1999

• Solid financial performance with steady growth in revenue, EBIT, and cash flow over the last 3 years

2. The global AGRR market*

VGRR potential in accessed markets 21.5m jobs

Belron share21%

Based on 2003 market and data

Continuing growth opportunities

Worldwide Vehicle Parc834m units

Vehicle parc in markets

where Belron operates

250m units

Clear strategy

Profitable Growth

Sales Growth

Efficiencies

Strategic Initiatives

Business Unit

Share Growth

New Markets

Standardisation

Support from Centre

Acquisition

Franchising

New Opportunities

Brand

Key Accounts

Service Innovation

Exec Development

Leveraging Fixed Costs

Productivity

IT Systems

Supply Chain

2003 Results overview

Vehicle glass with

• Revenue exceeded the EUR 1 billion mark for the first time

• Strong revenue growth despite adverse exchange rates

• Double-digit growth in operating profit

• 4 new markets added with a presence in 27 countries across 4 continents

2003 Results headlines

Vehicle glass with

EUR million 2003 2002 % change

Total jobs (in million units) 4.7 4.1 + 14.6%

Revenue 1,061.1 981.4 + 8.1%

Operating profit (EBITA) 82.9 74.6 + 11.1%

EBITA margin 7.8% 7.6%

Net financial result - 30.2 - 32.7

Net extraordinary result - 6.3 2.8

Profit before taxes 23.7 21.6 + 9.7%

Current result after taxes 1, 31.2 24.3 + 28.4%Dicobel’s share

1 Share of Dicobel, before amortisation of consolidation differences The average shareholding used for the consolidation of Belron is 80.93% as in 2002

0.0

200.0

400.0

600.0

800.0

1000.0

1200.0

Revenue 2002 Exchange rates Like for likegrowth

Expansion Revenue 2003

EU

R m

illio

n

Revenue

Italy, Sweden, Norway, Brazil

981.4 - 31.7+ 79.2 + 32.2 1,061.1

- 3.2% + 8.1%

+ 3.3%

Vehicle glass with

Europe + 10%France GermanyUK IrelandNetherlands BelgiumSpain ItalyPortugal SwitzerlandLuxembourg DenmarkSweden Norway

Rest of the world +1%

Canada New Zealand

Australia Brazil

Geographical revenue breakdown2 Revenue evolution 2 (EUR million)

Europe82%

Rest of the world18%

Revenue by geography• Growth1 above 10% in UK and France• Growth1 above 25% in high potential markets such as Spain and Portugal• Turbulent market conditions in Canada

1 at constant FX2 at actual FX

Vehicle glass with

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

EBITA 2002 Exchangerates

Saleseffect

Margineffect

Reg. &Branch

Commercial Others Acquired EBITA 2003

EU

R m

illion

Operating profit (EBITA)

Includes:- IT costs- Call centres- Head offices

Purchasing and productivity

10 additional branches

74.6 -1.4

+37.1+9.5 -13.6

-6.0-19.9

+2.6 82.9

Vehicle glass with

Growing geographic coverage

• Franchise agreements in Poland, Serbia Montenegro

Total Belron franchised countries today : 9

• New subsidiary in Norway (Jul 03)– Acquisition of Norway’s largest vehicle glass company– Revenue of EUR 6.5 m in 2002 in vehicle parc of over 2.5 m vehicles

Enhancing Belron’s Scandinavian coverage

• Re-entry into Brazil (Sep 03)

– Joint venture with local business partners– Revenue of EUR 11.2 m in 2002 – Brazilian vehicle parc of over 20 m vehicles

• New branches in Italy (03/2004)– 29 branches acquired from former competitor GlassPoint + 20 franchisees

added, bringing total network in Italy to 80 owned + 40 franchisees

Vehicle glass with

Growing geographic coverage : 15 new markets since 1999

Vehicle glass with

2000 : Switzerland, Greece2001 : Denmark, Turkey, Slovenia,

Croatia, Bosnia2002 : Sweden, Italy, Czech Rep.,

Israel2003 : Norway, Brazil, Poland,

Serbia-Montenegro

2004 Outlook

• Revenue growth driven by– Organic sales, marketing & customer service– Geographic expansion– New business initiatives

• Restructuring plans for Canada and Australia ongoing

• Continued focus on margin and productivity gains

• Revised timetable for implementation of new IT platform, due to significant delays incurred in development

Vehicle glass with

Appendices

Appendix A : P&L account of D’Ieteren Auto

D'Ieteren Auto

2003 2002 Var 03/02 %

Revenue 1,860.1 1,877.6 -17.5 -0.9%

Operating profit (EBITA) 50.9 52.8 -1.9 -3.6%2.7% 2.8%

Financial result -4.3 -8.8 4.5 51.1%

Amortisation of consol. diff. 0.0 0.0 0.0Extraordinary result 8.8 0.0 8.8Profit before taxes 55.4 44.0 11.4 25.9%

Taxation -7.8 -8.4 0.6 7.1%

Profit after taxes 47.6 35.6 12.0 33.7%

Eq. accounted cies (current result) 0.0 0.2 -0.2 -100.0%

Consolidated profit 47.6 35.8 11.8 33.0%

Share of minority interest -0.4 -0.2 -0.2 -100.0%

Net result * 47.2 35.6 11.6 32.6%

Current result after taxes * 36.9 35.6 1.3 3.7%

Current EPS* 6.6 6.4 0.2 3.7%

EBITDA 104.5 100.2 4.3 4.3%

* share of the group

EUR million

Net result, share of the group 47.2 35.6

Net extraordinary income -8.8 0.0Tax on extraordinary -1.5 0.0Net impact of extraordinary -10.3 0.0

Current result after taxes 36.9 35.6

2003 2002

Appendix B :Reconciliation Net result vs. Current result after taxes

20022003EUR million

D'Ieteren Auto

Appendix C : Avis Europe P&L (as reported by D ’Ieteren)

2003 2002 Var. Var.%

Revenue 1,169.4 1,189.2 -19.8 -1.7%

EBITA 122.8 186.5 -63.7 -34.2%10.5% 15.7%

Financial result excl. consol. diff. -62.8 -63.1 0.3 0.5%

Amortisation of consol. diff. -30.9 -30.1 -0.8Exceptional result -102.4 -16.4 -86.0Profit before taxes -73.3 76.9 -150.2 -195.3%

Taxation -3.8 -20.8 17.0 81.7%

Profit after taxes -77.1 56.1 -133.2 -237.4%

Eq. accounted cies -0.6 -1.2 0.6 50.0%

Consolidated profit -77.7 54.9 -132.6 -241.5%

Share of minority interest 31.8 -23.3 55.1 -236.5%

Net result * -45.9 31.6 -77.5 -245.3%

Current result before amort.consol. diff. *

27.1 54.6 -27.5 -50.4%

Current EPS before amort.consol. diff.*

4.8 9.8 -4.9 -50.4%

EBITDA 460.7 508.1 -47.4 -9.3%

* Share of the Group

Car Rental with

EUR million

100% Group 100% Group

Net result, share of the Group -45.9 31.6

Net extraordinary result 102.4 16.4Tax on extraordinary -9.9 -5.2Net impact of extraordinary 92.5 55.1 11.2 6.3

Amort. of consol. diff. 30.9 18.1 30.1 16.7Tax impact on amortisation of consol. diff. -0.3 -0.2 0.0 0.0

30.6 17.9 30.1 16.7

Current result after taxes, before amortisation of consol. diff.

27.1 54.6

2003 2002

Appendix D : Reconciliation Net result vs. Current result after taxes

* Average shareholding %age : 59.60% in 2003 ; 56.78% in 2002. Closing shareholding %age : 59.59% in 2003.

Car Rental with

2003 2002EUR million

Appendix E : P&L account of Belron

2003 2002 Var 03/02 %

Total jobs 4.7 4.1 0.6 14.6%

Revenue 1,061.1 981.4 79.7 8.1%

Operating profit (EBITA) 82.9 74.6 8.3 11.1%7.8% 7.6%

Financial result excl. amort. consol. diff. -30.2 -32.7

Amortisation of consol. diff. -22.7 -23.1Exceptional result -6.3 2.8Profit before taxes 23.7 21.6 2.1 9.7%

Taxation -13.1 -8.8Consolidated profit 10.6 12.8 -2.2 -17.2%

Share of minority interest -1.5 -2.7Net result * 9.1 10.1 -1.0 -9.9%

Current result after taxes before amort.consol. diff. *

31.2 24.3 6.928.4%

EBITDA 111.2 104.5 6.7 6.4%

* Share of the group

Vehicle glass with

EUR million

Appendix F :Reconciliation Net result vs. Current result after taxes

Vehicle glass with

100% Group 100% Group

Net result, share of the Group 9,1 10,1

Extraordinary results 6,3 -2,8Tax impact on extraordinary result -1,7 0Deferred tax recognition 0 -2,7Net impact 4,6 3,7 -5,5 -4,5

G/W amortisation 22,7 18,4 23,1 18,7

Net current result before G/W amortisation 31,2 24,3

2003 2002

Current result after taxes, before amortisation of consol. diff.

Amortisation of consol. diff.

EUR million

Financial Communication

T. : + 32 2 536 54 39

F. : + 32 2 536 91 39

e-mail : financial.communication@dieteren.be

www.dieteren.com

D’Ieteren

FORWARD LOOKING STATEMENT

““To the extent that any statements made in this presentation To the extent that any statements made in this presentation contain information that is not historical, these statements are contain information that is not historical, these statements are essentially forward-looking. essentially forward-looking. The achievement of forward-looking The achievement of forward-looking statements contained in this presentation is subject to risks and statements contained in this presentation is subject to risks and uncertainties because of a number of factors, including general uncertainties because of a number of factors, including general economic factors, interest rate and foreign currency exchange economic factors, interest rate and foreign currency exchange rate fluctuations; changing market conditions, product rate fluctuations; changing market conditions, product competition, the nature of product development, impact of competition, the nature of product development, impact of acquisitions and divestitures, restructurings, products acquisitions and divestitures, restructurings, products withdrawals; regulatory approval processes and other unusual withdrawals; regulatory approval processes and other unusual items. Citems. Consequently, actual results may differ materially from onsequently, actual results may differ materially from those expressed or implied by such forward-looking statements. those expressed or implied by such forward-looking statements. Forward-looking statements can be identified by the use of Forward-looking statements can be identified by the use of words such as "expects," "plans," "will," "believes," "may," words such as "expects," "plans," "will," "believes," "may," "could" "estimates," "intends", "targets", "objectives", "could" "estimates," "intends", "targets", "objectives", "potential", and other words of similar meaning. Should known "potential", and other words of similar meaning. Should known or unknown risks or uncertainties materialize, or should our or unknown risks or uncertainties materialize, or should our assumptions prove inaccurate, actual results could vary assumptions prove inaccurate, actual results could vary materially from those anticipated. The Company undertakes no materially from those anticipated. The Company undertakes no obligation to publicly update any forward-looking statementsobligation to publicly update any forward-looking statements" "