• Focus on cost management and capital expenditure to extract financial and operational efficiencies and ongoing review of the dealership footprint and acquisition opportunities.
• Review product margins, unit growth, and aggressive balance sheet management with a particular focus on working capital investment.
• Continue to provide service excellence and innovative client offerings, to support sustainable margins.
• Focus on new opportunities and expedite digital sales channels with a focus on offering niche products and services.
• Monitoring the political environment to identify possible negative impact on our operations and assess any risks and opportunities.
• Diversify selectively across sectors and geographical areas with different growth recovery trajectories (from South Africa) in the medium term.
• As part of our commitment to broader South African growth objectives, fund NGO societal partners to uplift and support communities in need.
• Continue to embed the benefits of the integrated business model to ensure that the opportunities within the broader motor value chain are optimised.

• Actively manage the effects of currency volatility through established hedging strategies, policies and governance structures.
• Management actively monitors foreign currency exposure and hedging to manage the effect of currency fluctuations on pricing and to assess appropriate hedging and other risk mitigation strategies.
• Where applicable, in-country hedging structures are incorporated to limit the impact of volatility on product pricing.
• The Chairman of the board leads quarterly Assets and Liabilities committee (ALCO) meetings to review funding requirements, currency hedging, asset allocation, interest rates, funding of acquisitions, and other cash management considerations.
• The ALCO also receives outcomes of currency scenarios to enable them to adequately mitigate fluctuations within the Group's tolerance levels.
• Management committees, including forex and treasury committees, are held regularly to understand forex requirement related to committed and forecast vehicle and parts orders, as well as the risks relating to operations outside of South Africa.

Motus manages its compliance universe within the approved risk and appetite framework. At a Group level, compliance monitoring is done by:

• confirming that current legislation has been operationalised into existing processes and procedures;
• ensuring that statutory and tax related legislation is correctly managed; and
• scanning the environment for any material changes to the current legislative landscape and monitoring those affecting our business model or the core market dynamics.

We operationalise our approach by ensuring:

• Compliance officers are in place and relevant compliance audits are conducted.
• Centralisation of specialist areas where compliance risk is high, for example central monitoring of financial services regulations for compliant sales of finance and insurance products.
• Increased engagement with industry and business associations in South Africa to advocate for more effective policies.
• Ongoing review of compliance with the Group ethics framework and legal requirements.
• Proactive monitoring, input and operational implementation plans and frameworks on emerging legislation are in place.
• Rigorous compliance programmes are in place and appropriate functions provide guidance across business segments to ensure compliance with key regulations.
• Expanded training and awareness campaigns for most recently implemented high impact legislation.
• Ongoing COVID-19 management and safety protocols are managed.

• Regular engagements with OEMs and suppliers to control inventory levels and monitor effectiveness of supply chains.
• Continually assess ways to improve efficiency of supply chain delivery channels.
• Proactively manage inventory levels to meet customer demand. Our management tools include leveraging the ability to move vehicles and parts between locations to ensure continuous support for customers and operational demand.
• Continuously review the availability and inventory on hand of pre-owned vehicles.
• Optimised marketing and operational practices across value chains where inventory derivatives are in short supply.
• Implementation of inter-provincial hub systems to de-risk concentration of inventory in single locations and ensuring that we can leverage access to global markets and relationships.

• Proactive and continuous engagement with OEMs at senior levels, with regular one-on-one discussions and ongoing negotiation of sales targets for vehicles and parts.
• Maintain the standards OEMs require and meet their expectations.
• Ongoing monitoring of customer satisfaction and perception of the OEM brands and reputation.
• Strategy to renew Importer agreements ensures renewals are initiated earlier in cycle and with longer contract terms.

• Maintain oversight and monitoring of material IT risks profiles and projects via the ARC meeting, and ultimately the board.
• Development and maturity of IT governance framework incorporating cyber strategy.
• Ensure investment in leading technology as a key business differentiator, including ongoing digitisation of the customer experience to respond to customer market expectations and experience.
• With the reliance on external vendors for applications and hardware, service level management is receiving attention to ensure delivery of critical hardware and application support during these constrained times.
• External review and audit of the general IT controls and assess findings to incorporate continuous improvement practices.

• Perform ongoing cyber-risk assessments to assess the emerging risk landscape.
• Monitor adherence to the minimum cyber security guidelines.
• Conduct ongoing assessments on cyber risks and how to mitigate them. Our IT departments also conduct proactive testing.
• Continuously strengthen information and cybersecurity guidelines and policies relating to email and general user access. Tighter application controls and multi-factor authentication complement these measures.
• Closely monitor access to IT systems and information from our operations outside of South Africa.
• Monitor network activity and investigate daily reports of suspicious activities.
• Proactive quantitative and qualitative assessments of the potential impacts on current and future business strategies.
• Responsibility and accountability for information protection and cyber resilience are understood by the Group's stakeholders.
• Management expectations in respect to information protection and cyber resilience have been captured and communicated to staff, partners and customers in the form of frameworks, policies, procedures and standards.
• A responsible official, the Chief Information Security Officer, has been appointed to coordinate and monitor the implementation and operation of security practices and controls across the Group.
• Ongoing cyber-awareness and education initiatives are in place to ensure staff and partners understand their role in protecting the Group's assets.
• Access to expertise in relation to best practices, technology deployments and incident detection, containment and response has been provisioned.
• A suite of controls for the detection, prevention, or containment of threats, as well as to aid in recovery in the event of cyber incidents and data losses, has been deployed and is effective.
• Deepening the incident response capability to deal with incidents and issues as they arise.

• Adopted co-ordinated policies and programmes focused on transformation, development and promotion of internal candidates and recruitment of candidates to achieve employment equity targets.
• Implemented detailed succession planning at all levels (including the CEO and CFO), with focused recruitment of experienced senior and middle management candidates, with the objective of increasing the available pool of inclusive and diverse leadership talent.
• Increase investment in formal training programmes.
• Incorporation of unemployed and graduate learners into Motus human capital strategy to identify potential candidates for the motor industry. Employed over 400 graduates from the YES programme.
• Participation in career fairs to market the motor industry as an employer of choice.
• Offer employee training and development programmes, including specialist training academies.
• Talent management programmes are aligned to the key current and future skill requirements.
• Where applicable, transitioned to hybrid and online training delivery mechanisms.
• Increasing employee communication to improve message coordination and consistency.
• Provide support, advice and clear guidance to our people to protect their wellness and health.

• Active monitoring and oversight of B-BBEE scorecard and targets.
• Clear initiatives in place to meet employment equity targets and skills development driven by Group leadership. Appointed and promoted a number of black employees to fill senior management positions. Read more in our people report.
• Selective and appropriate joint ventures with strategic B-BBEE partners.
• Continue to work on focused programmes to extend our network to historically underserved areas around informal communities; this includes, non-OEM branded workshops, the opening of majority owned black dealerships, and formalisation of access to parts and services by informal traders and technicians.
• Ongoing review of supply chain opportunities to increase participation of new entrants.
• Investment in support opportunities for new black entrants in own and broader industry supply chains.
• B-BBEE target achievement is a short-term incentive performance criteria.

• Accelerate the implementation of new and improved ways of doing business to reduce costs and increase efficiency.
• Keep abreast of innovative changes by competitors.
• Ongoing monitoring of market trends and new innovations by executives.
• Ongoing focus on how the Group can capitalise on our window of opportunity to create and deliver value.
• Drive delivery of the innovation strategy throughout the Group and create a culture of innovation and collaboration through the mx innovation initiative. Read more in our Chief Innovation Officer's review.

• Position the Group clearly as a market leader in South Africa with high levels of professionalism and values.
• Ongoing monitoring of our brands in the media to proactively respond to potential adverse public relations.
• Maintain levels of quality and safety requirements of products and services by investing in reputable brands for markets in which we operate.
• Increase investment in matching customer experiences, both in physical and digital presence.
• Monitor and actively engage on matters reported to industry and product ombudsman.
• Ensure that our treatment of, and response to stakeholders aligns with our values of fairness and transparency.
• Understanding the context of the geography and communities in which we operate, have maintained, and increased our support to education, healthcare, and road safety.
• Increased funding to NGOs that serve pivotal functions in providing health care and food services during COVID-19 and in response to the recent unrest in South Africa.
• In pursuing our objective of creating sustainable value for all impacted stakeholders, we have integrated our approach and response to ESG considerations and are committed to continuing our ESG journey.

• Accelerate the implementation of new and improved ways of doing business to reduce costs and increase efficiency.
• Keep abreast of innovative changes by competitors.
• Ongoing monitoring of market trends and new innovations by executives.
• Ongoing focus on how the Group can capitalise on our window of opportunity to create and deliver value.
• Drive delivery of the innovation strategy throughout the Group and create a culture of innovation and collaboration through the mx innovation initiative. Read more in our Chief Innovation Officer's review.

We continue to drive the effective management of the environmental and social consequences of our activities by:

• Improving the measurement and reporting of our climate and environmental impact.
• Investing in low carbon and water-saving solutions.
• Defining a three-year key performance indicator (KPI) to reduce impact relating to use of fuel, water and electricity in operations.
• Incorporating ESG priorities in monitoring and oversight activities.
• Understanding and planning around the medium to long-term electric and hybrid vehicles available from the OEM's. Read more in our ESG report online.