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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 : [email protected]
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" "
