Integrated business model

Creating value

The Group’s ability to create value for all stakeholders over the long term is underpinned by our strategic agility as we deepen competitiveness, maintain market shares, and position the business to respond to changing market conditions.

We participate in all aspects of the vehicle ownership cycle. Our broad scope of activities diversifies our revenue and profit streams and is cash generative, enabling us to cross-sell and leverage opportunities across the Group.

Our capitals, inputs and outcomes

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  • Financial Capital
    Financial
    Capital
  • Human Capital
    Human
    Capital
  • Social and Relationship Capital
    Social and Relationship
    Capital
  • Intellectual Capital
    Intellectual
    Capital
  • Manufactured Capital
    Manufactured
    Capital
  • Natural Capital
    Natural
    Capital

Financial Capital

A strong balance sheet, strong cash flow generation, structured capital allocation, and financial discipline ensure our resilience, thereby supporting sustainable returns to stakeholders over time.

Inputs
  • Ability to generate cash provides liquidity to fundworking capital and invest in growth opportunities.
  • Strong balance sheet is underpinned by a focus on cost containment and financial discipline.
  • Disciplined capital management and allocation to ensure strategic flexibility.
Outcomes
  • Revenue of R87,2 billion (2020: R73,4 billion).
  • Operating profit of R3,8 billion (2020: R2,1 billion).
  • Headline earnings of R2,1 billion (2020: R550 million).
  • Headline earnings per share (HEPS) of 1 179 cents per share (2020: 296 cents per share).
  • Full year dividend of 415 cents per share, with a final dividend of 255 cents per share declared and an interim dividend of 160 cents per share paid.
  • Net debt to equity ratio of 28% (2020: 60%).
  • Net debt to earnings before interest, tax, depreciation and amortisation (EBITDA) of 0,8 times (2020: 2,2 times).
  • Free cash flow generated from operations of R5,9 billion (2020: R3,0 billion).
  • Invested in select acquisitions during the year to further deliver our longer-term growth strategies.
Referencing
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More detail about our financial performance in the Chief Financial Officer’s Review.

Human Capital

A skilled, diverse, productive and motivated workforce enables us to operate cost-effectively and efficiently to meet stakeholder needs. In turn, we work to provide our employees with career growth opportunities and a fair, rewarding, and safe work environment.

Inputs
  • 16 708 employees (2020: 17 499).
  • South African training spend of R144 million(2020: R177 million) and UK and Australian trainingspend of R127 million.
  • An experienced and diverse leadership team.
  • High-performing, inclusive and collaborative culture supports diversity, innovation and entrepreneurial flair.
  • A human capital strategy that is designed to provide business informed people practices and frameworks that accelerate innovation and growth.
Outcomes
  • 76% of employees are based in South Africa, of whom 73% are black.
  • Black representation at top management level in South Africa of 36% (2020: 30%), including the appointment of two new executive committee members.
  • 274 employees participated in managerial development programmes (2020: 211) – 65% of participants were black and 38% were women.
  • 83% of total South African training spend supported technical training with a significant increase in training spend to support the development of soft skills (2020: 84%).
  • Continued to comply with all health and safety guidelines for COVID-19.
  • Expanded the Employee Assistance Programme to include financial and legal advice, to support employee wellbeing.
Referencing
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More information on our people is provided in the leadership and people sections.

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Read the full review online in our ESG report.

Social and Relationship Capital

Our commitment to building quality relationships with our stakeholders enables us to secure our reputation and licence to operate, maintain their trust and achieve our strategic objectives.

Inputs
  • Strong, long-standing relationships with OEMs, suppliers and customers, as well as businesspartners, including joint venture and technology partners.
  • Constructive relationships with regulators, governments and local communities.
  • We are committed to making a real difference in our communities, directing our contributions to improving literacy and community healthcare, and promoting road safety awareness.
  • Enterprise development spend of R76 million in South Africa (2020: R30 million).
  • Corporate social investment (CSI) spend of R18,6 million, invested in community upliftment, supporting education, health, youth development, and road safety (2020: R28,1 million).
Outcomes
  • We increased our communication with stakeholders, including funders, investors and our people, to manage the impact of COVID-19 on relationships.
  • The Imperial and Motus Community Trust supports 52 school resource centres and libraries, providing access for over 61 300 learners. The trust employs 65 full time staff, many of whom were unemployed learners from the communities wherein the resource centres are based.
  • Reached 1,8 million learners through the Motus Safe Scholar programme that teaches road safety in over 2 080 schools.
  • We were nominated as a finalist in the Institute of Risk Management South Africa (IRMSA) awards in recognition of Motus’ COVID-19 community response activities.
  • Introduced South African Youth Employment Service (YES) programme, with over 400 youths employed. The Imperial and Motus Community Trust and the Unjani Clinics network will also benefit from these proposed placements.
  • Support a network of 94 clinics employing 346 people in townships through the Unjani Clinics network, with clinic consultations to date exceeding two million.
  • After year-end, committed R5 million to food and medical relief efforts in KwaZulu-Natal.
Referencing
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More information on stakeholder engagement and other social initiatives is provided in the stakeholder engagement and environmental, social and governance overview sections.

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Read the full review online in our ESG report.

Intellectual Capital

Our IT architecture plays a critical role in securing our data, improving efficiencies, and integrating business segments. Embedding effective management systems assists in providing insight and oversight to ensure continuity and in driving competitiveness and agility as our operating environment evolves.

Inputs
  • Our relationships and capability enable us to continuously align with digital, mobility, and automation trends, and adapt to meet changing customer needs.
  • Investment in IT, innovation, and training supports our collaborative customer engagement model and enhances the customer experience across the vehicle ownership cycle.
  • We optimise operating models and assess our responsiveness to disruption continuously.
  • We maintain our IT security and governance to ensure the safety of our data and systems.
  • We invest in registering and promoting our trademarks and intellectual property.
Outcomes
  • Our innovation platform, Motus Xponential, or mx, has over 3 900 members participating from across the Group.
  • During the year, seven business challenges were taken through the innovation funnel, with twelve concepts selected for further development.
  • We launched motus.cars, increasing our ability to engage digitally with our customers and invested in getWorth to access innovative technology and deepen customer experience across the Group.
Referencing
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More information on our innovation and IT strategy can be found in Chief Innovation Officer’s and risk and opportunities reports.

Manufactured Capital

Our property, plant and equipment support our capacity to generate longer-term returns for our stakeholders.

Inputs
  • Our footprint includes a network of 341 dealerships and 100 car rental branches in Southern and East Africa, supplemented by 86 commercial and 33 passenger dealerships in the UK and 36 passenger dealerships in Australia.
  • We invest in maintaining our assets to ensure that they operate safely, reliably, and efficiently.
  • Motus owns real estate worth R6,8 billion to support its businesses.
Outcomes
  • We actively manage our dealership footprint and have multi-franchise dealerships in various locations, with our single biggest multi-franchise business to open in early 2022.
Referencing
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More information can be found in Chief Executive Officer’s review.

Natural Capital

The critical natural resources required by our businesses are water, electricity, fuel, and paper in administrative environments.

Inputs
  • We are committed to operating in an environmentally conscious and responsible manner.
  • Our environmental management approach supports our value proposition and credibility among OEMs, customers, strategic partners, and employees.
  • 570 089 kilolitres of water consumed (2020: 603 509 kilolitres).
  • 73 317 megawatt hours of electricity purchased from municipalities (2020: 75 713 megawatt hours).
  • 16 million litres of road fuel consumed (2020: 19 million litres).
Outcomes
  • We achieved an environmental score of 3,0 out of 5 in the FTSE4Good Index Series (2020: 3,3 out of 5).
  • 109 892 tCO2e* across scopes 1 and 2 emissions (2020: 116 667 tCO2).
  • No incidents of non-compliance with environmental regulations.

* tCO2e: tonnes of carbon dioxide equivalent.

Referencing
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More information on environmental management is provided in the environmental, social and governance overview section.

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Read the full review online in our ESG report.