Our business

Value creation

Inter-dependencies with the capitals

Capitals     Inputs     Outcomes
           

Financial capital

A strong balance sheet, high cash flow generation, structured capital allocation and financial discipline to ensure sustainable returns for our stakeholders.

     

Ability to generate cash provides liquidity to fund working capital, invest in growth and support a share buy-back, while maintaining a stable dividend pay-out policy.

  • Growth in revenue and operating income.
  • Focus on cost containment and financial discipline.
  • Growth in normalised headline earnings per share.
  • Dividend pay-out of 45% of normalised HEPS.
  • Net debt to equity ratio within targeted range: 55% to 75%.
  • High cash flow generation.
  • Share buy-back where appropriate.
     
  • Revenue of R79,7 billion – up 3,5%.
  • Operating income of R3,6 billion (margin of 4,5%).
  • Normalised headline earnings of R2 137 million up 7%.
  • Full-year dividend 490 (2018 pro forma: 444) cents per share.
  • Net debt-to-equity ratio: 55,9% (2018: 50,7%).
  • Debt to EBITDA: 1,4 times.
  • Cash generated from operations R2 743 million.
  • Share buy-back of R780 million.

A full review of our financial activities is provided in the Chief Financial Officer’s report.

                 
                 

Human capital

A skilled, diverse, productive and motivated workforce enables Motus to operate in a cost-effective and efficient manner to meet stakeholder needs. Motus strives to be fair, accountable and driven, by complying with rules and regulations, operating with the highest levels of integrity and ethics, and providing stimulating careers.

     
  • 18 628 employees of which 15 000 are in South Africa.
  • A high-performance, inclusive and collaborative culture with diversity, innovation and entrepreneurial flair at the core to excel in customer service.
  • Human capital strategy to develop and empower employees, be an employer of choice, improve practices and processes and ensure a strong focus on transformation and succession.
  • An experienced and diverse leadership team.
     
  • 73% black employees in South Africa.
  • Black representation in top management in South Africa of 31% (2017: 25%).
  • Training spend in 2019 of R137 million (2018: R132 million).

Training programmes such as: Diversity Training, Women in Leadership, Executive Development, Dealer Principal and Portfolio Management.

A review of our activities is provided in the following sections of our 2019 reports:

                 
                 

Social and relationship capital

Trusted relationships with stakeholders is essential to securing our reputation, licence to operate and enabling us to deliver on our strategies.

     
  • Strong relationships with OEMs and customers, as well as business partners, who include B-BBEE, joint venture and technology partners.
  • Relationships with regulators, governments and local communities.
  • Commitment to socio-economic development in partnership with the Imperial and Motus Community Development Trust and investing in programmes that support education, youth development and road safety.
     
  • Long-standing OEM relationships, representing 22 OEMs in South Africa.
  • Exclusive South Africa importer and distributor of Hyundai, Kia, Renault and Mitsubishi.
  • Enterprise development spend of R89 million (2018: R72 million).
  • Total CSI spend of R28,9 million (2018: R16,4 million).
  • Distributed R1 106 million to governments (2018: R1 134 million).

A review of our activities is provided in the following sections of our 2019 reports:

                 
                 

Intellectual capital

Our business model depends on having effective management systems. It is imperative for the IT architecture to effectively support our business segments securely, providing insight and oversight in a cost-effective manner and enable business agility, continuity and growth as our operating environment evolves.

     
  • Continuously align with digital, mobility and automation trends and changing customer needs.
  • Investment in IT and innovation that supports our collaborative customer engagement model and enhances the customer experience across the vehicle ownership cycle.
  • Ongoing optimisation of operating models and responsiveness to disruption.
  • Continued focus on IT security and governance.
     
  • Successfully transitioned our IT systems and services from Imperial Holdings onto a new common network and server.
  • Strengthened the IT governance framework and IT security capabilities.

A review of our activities is provided in the following section of our 2019 reports:

                 
                 

Manufactured capital

The financial investment in the purchase, development and maintenance of property, plant and equipment has given Motus the capacity to generate longer-term returns for stakeholders.

     
  • Investment in the maintenance of our assets to ensure that they operate in a safe, reliable and efficient manner. These include properties and facilities, either owned by Motus or by others (independent dealerships and outlets), as well as movable assets, for example the rental fleet.
     

A review of our activities is provided in the following sections of our 2019 reports:

                 
                 

Natural capital

Our business model involves consumption mainly of water, electricity and fuel. Motus is committed to operating in an environmentally conscious and responsible manner.

     
  • Environmental management that supports our value proposition and credibility among OEMs, customers, strategic partners and employees.
     
  • Constituent of the FTSE4Good Index Series achieving an environmental score of 3,6 out of 5.
  • Added a sustainability linked loan with BNP Paribas to complement the commitment to environmental awareness and sustainability. The mechanism of the loan is such that the cost of credit is linked to the reduction in Motus’ water and fuel consumption.

A review of our activities is provided in the following sections of our 2019 reports: