LiquidCapital in Perspective
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Agenda
- LiquidCapital corporate video
- Our business in quantum
- What we do
- Key financial indicators
- Questions
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Business in quantum
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Our Business
- We offer a broad range of financial products and services to the motor industry,
corporate customers, leasing ventures and the South African motoring public
- We are a registered Financial Services Provider
- We are a level 3 BEE contributor
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Our Business in Quantum
- We are the largest provider of branded financial services solutions in the motor
industry
- We are believed to be the 2nd largest provider of contract maintenance in the
country
- We provide a range of vehicle products and services for over 13 international motor brands represented in South Africa
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Our Business in Quantum
- We have over 560,000 active customers on our books
- We manage over 1,072,000 policies (active and future active)
- We administer and manage a fleet of over 11,000 vehicles
- We receive and make more than 110,000 in and outbound calls per month
- We also make more than 100,000 customer satisfaction research calls per month
contract maintenance authorizations
per month amounting to R55 million
35,000 - We process more than
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Our Credo
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What we do?
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The Motor Industry Financial Services Model
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Finance
Strategy ! Alliances - MFC and WesBank
! Liquid Vehicle Finance (a joint initiative between LiquidCapital and WesBank) launched 2009
! Branded finance solutions
Finance and Insurance Management Solutions (FAIMS) ! Over 180 F&I Business Managers
! Solution tailored for over 350 dealer outlets
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Value added vehicle products
- Contract maintenance - Service Plans and Maintenance Plans
- Vehicle profiling & plan pricing
- Quoting calculator
- Authorisations/Claims
- Warranties - Manufacturer and extended warranties
- Other insurance products - Paint protection, deposit cover & gap cover
- Roadside assistance & accident management - Believed to be the 2nd largest provider in SA
- Tracking devices and on board telematics
- Relationships with numerous major players
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Product White Labeling
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Branded Fulfilment
Branded fulfilment – founda0on to launch customer communica0on journey
Kia Hyundai Kawasaki Mitsubishi LiquidCapital Triumph
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Insurance
- Insurance aggregator business - Support all AMH dealerships
- Support all Imperial Automotive Retail dealerships
- Sell direct to consumer
- Comprehensive insurance quotes - On vehicle, motorcycle & household
- Panel of insurance providers
- Tracking devices offered
- Integration into accident management process
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Accident Management
Customer obtains insurance through Liquid Insurance
Quotes
Customer has accident
Tracking device give notification of accident
Liquid Roadside dispatch tow truck to collect vehicle
Tow truck delivers vehicle to our approved panel beater
Approved panel beaters only use OEM parts
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Customer Life Cycle
Customer takes delivery of vehicle
Sales CSI survey and data hygiene
Telesales initiatives
Service and maintenance plan authorizations
After – sales surveys
Customer relationship
communication
Retention / churn campaigns
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One View Of Customer
-‐ Advanced data warehousing and business intelligence solu0on, ensure -‐
-‐ Enhanced data quality of customer and vehicle informa0on
-‐ Enhanced business insight and customer centricity
-‐ Ability to profile and predict behaviour of motoring customers
Automated Direct Marketing Engine
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Data Warehouse
Business intelligence - Vehicle, customer & fleet behaviour
- Provide enhanced ability for analysis and repor0ng
Customer Age Marital Status/Gender Gender
Gender/Age
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Customer Journey
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Customer Experience Management
-‐ Exceeding customer expectaEons
-‐ ImplemenEng “tomorrow’s technology” via -‐ Responsive website & email designs -‐ Customer apps -‐ Automated customer communicaEon
MOBILE APP
CUSTOMER COMMUNICATION
PC WEBSITE
TABLET
MOBILE
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Responsive Design Website
- Responsive CSS Framework - Multiple browser and device
compatibility - Sophisticated coding employed
to support cross device functionality
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Google Partnership
- Relationship with Google, which allow - testing various beta products - as soon as they are available
- Dedicated test account in which we are
currently testing: - different display targeting
combinations - remarketing lists for search ads
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Website Tracking
- Monitoring of –
- Active customers
- Website activity
- Demographics (age/gender)
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Analytics Tracking
- Website visitors by geographic area
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- Tracking - Opening Rates - Link Tracking via Heat maps
Email Automation
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Email Automation
Inbox analytics: Email Clients used to read emails
Inbox analytics: Engagement Rates - Read - Skimmed - Glanced/ Deleted
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Mobile app
- Customer raise request for roadside assistance through app
- App automatically identifies the customer’s geo location and communicates to call centre
- Various services offered –
- Roadside services
- Route map assistance
- Accident logger
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CSI
Research - Customer satisfaction – sales, service and data hygiene
- Call centre specialising in - Sales CSI - Aftersales CSI - Parts surveys - Other ad hoc surveys
- CATI (by NIPO) “Computer Assisted Telephonic Interviewing” software
used – similar platform used as leading research houses (i.e. Markinor &
IPSOS)
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Other Support Services
- Customer care
- Website hosting and support
- Marketing material
- Training
- Compliance, validations & quality control
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Fleet Management
Products & services offered:
- Leasing & rentals
- Fines management
- Vehicle licensing & registration
- Accident management
- Roadside assistance
- Managed maintenance
- General vehicle maintenance, tyres, glass, etc
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Fleet Management
Ability to manage diverse fleet ranging from:
- Passenger vehicles
- Light commercial vehicles
- Heavy commercial vehicles
- Forklifts
- Armoured vehicles
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Fleet Management - Clients
Some of our clients:
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Our Roadmap
Ariva
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2001
MFC JV
Demo Plan
IFM Telesales
Service & Maintenance
Plans
CSI
Roadside Assistance
Liquid Vehicle Finance
LiquidCover
360PLUS
Direct Marketing
2014
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Key financial indicators
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Funds Under Management
Funds under management - LiquidCapital
Funds under management – Cell Captive (after dividends)
FUNDS
GROWTH
2009
Base
Base
2010
+203%
2011
+2%
2012
+25%
2013
-
+38.4% +37.0% +36.0% +22.5%
2014 H1
+10%
+7.0%
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Base +29% +45% +37%* +26% +7%
* Change in estimate in respect of revenue recognition
Forex Exposure
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- Only a portion of the funds under management are exposed to
currency fluctuations
- Forex exposure is managed through:
- Changes to assumptions in the actuarial valuation model
- Re-pricing of plans
- Ongoing negotiations around parts pricing
Revenue Income Contribution
- Revenue analysis for the half year ended Dec 2013
42%
19%
21%
8%
4% 2% 1% 3%
Fund revenue Fleet Services Motor Finance Alliances Cell Captive Liquid Direct Liquid Cover Liquid CSI Tracking Devices
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Finance Alliance Books
TOTAL
GROWTH
2009 R’m
8 975
2010 R’m
7 316
2011 R’m
10 287
2012 R’m
14 499
2013 R’m
18 795
2014 H1
R’m
-18% +41% +41% +30%
BOOKS
21 663
+15%
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R-
R5 000 000,00
R10 000 000,00
R15 000 000,00
R20 000 000,00
R25 000 000,00
2 009 2 010 2 011 2 012 2 013 2013 (YTD Dec)
Telesales
- Total Monthly Telesales increased by 303% over last 5 years
500
1000
1500
2000
2500
3000
3500
4000
4500
Dec-2009 Jun-2010 Dec-2010 Jun-2011 Dec-2011 Jun-2012 Dec-2012 Jun-2013 Dec-2013
Total Monthly Sales Linear (Total Monthly Sales)
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Direct Marketing
- Growth in direct marketing
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0
500
1000
1500
2000
2500
3000
3500
4000
0
200
400
600
800
1000
1200
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb
2012 2013 2014
Leads Sales Actual
AMH Dealership Sales
Total AMH vehicle sales vs Total value added product (VAP) sales in AMH dealerships
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0
2000
4000
6000
8000
10000
12000
14000
Jan-2009 Jul-2009 Jan-2010 Jul-2010 Jan-2011 Jul-2011 Jan-2012 Jul-2012 Jan-2013 Jul-2013 Jan-2014
Total Vehicle Sales Total VAP Sales
Independent Dealership Sales
Total value added product (VAP) sales in Independent dealerships
- Focus: Service & Maintenance Plans, Extended Warranties
0
200
400
600
800
1000
1200
1400
1600
Jan-2010 Jul-2010 Jan-2011 Jul-2011 Jan-2012 Jul-2012 Jan-2013 Jul-2013 Jan-2014
Total VAP Sales Linear (Total VAP Sales)
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Sustainability Of Earnings
Average contract duration increased from 2.92 years to 4.25 years Average term of vehicle on book increased from 15 months to 21 months (last 7 years)
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10
12
14
16
18
20
22
25
30
35
40
45
50
55
Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13
Average contract duration Average age of parc
Mon
ths
* Calculated on Service & Maintenance Plans
Sustainability Begins at Home
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- Outstanding customer service is central to our business
- Our employees are the key differentiator in achieving superior business results - LiquidCapital invest in training and upskilling our people - Employee wellness program
- LiquidCapital ensures compliance with all legislative requirements through:
- customer call validation
- quarterly sales script reviews
- daily live auditing on all sales calls (BYC)
- annual compliance reports submitted to FSB
Results
- only 1 Ombud complaint in the past 2 years
- No negative findings or fines levied against LiquidCapital ever
BCG Matrix - Products
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Service and Maintenance
Plans
Warranty
Roadside Assistance
Warranty PlaEnum Plus
Tyre & Rim
Tyre Maintenance
Plan
Service Plan Plus
Mar
ket
Gro
wth
Rat
e
Low
Hig
h
Market Share Low High
BCG Matrix - Channel
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Pre-‐paid (wholesale)
AMH Dealer Floor
Telesales Website
Direct MarkeEng
360PLUS
Non-‐Motor Financial Services
Mar
ket
Gro
wth
Rat
e
Low
Hig
h
Market Share Low High
Branded Independent Dealer floor
Conclusion
- Business well positioned for growth
- Diversification of revenue streams
- Development of new sales channels
- Investment in technology, innovation and entrepreneurship
- Aggressive management of business risks
- Leveraging efficiencies throughout the business and the Group
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Thank you
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