DRIVEN BY EXCELLENCE - JSE MAGAZINE

DRIVEN BY EXCELLENCE

With more than 70 years in the industry, Motus brings cutting-edge mobility solutions to the market while being conscious of its community impact

Motus Holdings Ltd (Motus) traces its roots back to 1948 when its founding company Imperial Holdings started as a humble motor dealership in downtown Johannesburg. Imperial listed on the JSE in 1987 and grew into one of SA’s largest diversified conglomerates.

In 2017, after strategic portfolio optimisation and realignment of Imperial’s businesses, Motus was created as a separate holding company for all the automotive businesses within Imperial. In June 2018 Imperial announced its intention to unbundle Motus as a listed entity. The decision to unbundle was aimed at maximising value through strategic clarity, managerial focus and shareholder insight.

On 22 November 2018 Motus listed on the JSE, enabling the company to operate in a more focused and efficient manner, while giving shareholders an opportunity to participate directly in Motus’ success. Today it is a diversified, non-manufacturing, business in the automotive sector with unrivalled scale and scope in SA, and a presence in selected international markets – mainly the UK and Australia.

Motus’ unique business model is fully integrated across the automotive value chain through four key business segments, namely:

  • Import and Distribution
  • Retail and Rental
  • Motor-related Financial Services
  • After Market Parts.

This business model provides diversified service offerings underpinned by significant annuity earnings and sustainable free cash-flow generation, maximising revenue and income opportunities.


INVESTMENT HIGHLIGHTS 

  • Diversified (non-manufacturing) business in the automotive sector with a leading position in SA and selected international presence.
  • Fully integrated business model in SA across the vehicle value chain.
  • Unrivalled scale in SA underpins a differentiated value proposition to OEMs, suppliers, customers and business partners, providing multiple customer touchpoints that support customer loyalty through the entire vehicle-ownership cycle.
  • Profitability from high free cash-flow generation underpinned by annuity income streams, with return on invested capital exceeding weighted average cost of capital, and providing a platform for an attractive dividend yield.
  • Defined organic growth trajectory through portfolio optimisation, continuous operational enhancements and innovation, with a selective acquisition growth strategy inside and outside SA, leveraging best-in-class expertise.
  • Highly experienced management team with deep industry knowledge of regional and global markets and a proven track record with years of collective experience, including an independent and diversified board.

SOCIAL IMPACT
At a group level Motus focuses on two pillars for direct CSI sponsorship, namely education and road safety. Long-term initiatives are identified within these pillars and approximately 70% of group commitment is aligned to group projects.

Motus Community Trust
Established in 2003 to assist communities, the Motus Community Trust has established 35 school resource centres, providing access for 37 000 learners on a daily basis and assisting 1 300 teachers. The trust also employs 81 full-time staff, many of whom were previously unemployed learners.

Safe Scholars programme
This national campaign has visited more than 1 470 schools, given road safety talks to 1 413 217 learners and distributed 85 300 reflective sashes.


Highway patrol
As part of its ongoing commitment to safer roads for all South Africans, Motus has committed to sponsoring vehicles to the Bakwena N1/N4 toll concession during the peak Easter and festive holiday season. The sponsored vehicles assist in visible policing and faster response time to incidents.

ENVIRONMENT
Motus believes in implementing practices that will aid the growth of the economy while executing the business strategy in an environmentally conscious and responsible manner. It also recognises that an integral part of society (including the communities that it operates in and its people) is to create a safe working environment as well as to provide equal and fair opportunities for all. Motus’ projects are aligned to ensure more efficient energy and water consumption, and delivering minimal waste.

Motus recently concluded a $30 million sustainability-linked loan with BNP Paribas. The innovative deal links preferential interest rates with sustainability targets in an effort to support, motivate and reward Motus in driving its strategy by reducing fuel and water consumption.

TECHNICAL TRAINING
Owning the largest technical training academy for motor artisans, Motus trains 1 960 artisans yearly. (Although it requires 780 artisans, the balance are trained for the broader motor industry.) The company recently launched a joint programme with the Department of Higher Education and Training to train an additional 600 artisans over a three-year period.

INTERIM RESULTS
At the end of February Motus released its interim results for the six months ended December 2018.

Key highlights include the following:

  • Revenue stable at R39.4 million
  • Operating profit up 7% to R1.8 million
  • EPS down 7% to 436c per share (normalised EPS up 10% to 516c per share)
  • HEPS down 2% to 456c per share (normalised HEPS up 15% to 536c per share)
  • Dividend up 15% to 240c per share (2017 pro forma: 209c per share).

‘In the period under review, Motus produced solid results and recorded an improvement in key financial metrics,’ says Motus CEO Osman Arbee. ‘Our diversified portfolio in the industry and participation across the full automotive value chain provided resilience amid the market deterioration.’

STRATEGY AND PROSPECTS
Motus is well positioned to maintain its leading automotive retail market share in SA and grow in selected international markets. It aims to sustain targeted returns, generate high free cash flows and provide a platform for a consistent dividend payout through the cycle. The group anticipates satisfactory operating and financial results to June 2019, subject to secure currencies and economic stability in the economies in which it operates.

Motus’ vision is to improve people’s lives by envisioning, innovating and creating new avenues of access to leading-edge mobility solutions (products and services) at competitive prices through its strong relationships with suppliers and principals, while ensuring sustainable value creation for all stakeholders. It aims to exceed employees’ and client expectations, and become OEMs’ and suppliers’ trusted partner of choice in the geographies in which it operates.


1 Van Buuren Road,
Bedfordview, 2008
+27 (0)10 493 4335
General inquiries
Investor relations
www.motuscorp.co.za